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State of Jammu-Kashmir - Section

Section 11 in Jammu and Kashmir State Electricity Regulatory Commission (Terms and Conditions for Determination of Multi Year Generation Tariff) Regulations, 2016

11. Thermal Power Generating Stations

- Components of tariff :
11.1The Tariff for supply of electricity from a thermal generating station shall comprise of two parts, namely, capacity charge (for recovery of annual fixed cost) and energy charge (for recovery of primary fuel cost and secondary fuel cost & limestone where applicable) to be worked out in the manner provided hereinafter.
11.2The annual fixed cost of a thermal generating station shall consist of the following components :-
(a)Return on Equity ;
(b)Interest and Financing Charges on Loan Capital ;
(c)Depreciation ;
(d)Operation and Maintenance Expenses ;
(e)Interest Charges on Working Capital.
Less :
(f)Non-Tariff Income
11.3Energy Charge: Energy charges shall be derived on the basis of the landed fuel cost (LFC) of a generating station (excluding hydro) and shall consist of the following cost :-
(a)Landed Fuel Cost of primary fuel ; and
(b)Cost of secondary fuel oil consumption :
Provided that any refund of taxes and duties along with any amount received on account of penalties from fuel supplier shall have to be adjusted in fuel cost.Norms of operation :
11.4The norms of operation for generating stations in general shall be as under :-
(a)Normative Annual Plant Availability Factor (NAPAF) : For all thermal generating stations, NAPAF shall be 85%.
(b)Normative Annual Plant Load Factor (NAPLF) : All thermal generating stations, NAPLF shall be 85%.
(c)Gross Station Heat Rate :
(a)Coal-based and lignite-fired thermal generating Stations = 1.045 X design heat rate (kCal/kWh).
Where, the design heat rate of a unit means the unit heat rate guaranteed by the supplier at conditions of 100% MCR, zero per cent make up, design coal and design cooling water temperature/back pressure :Provided that the design heat rate shall not exceed the following maximum design unit heat rates depending upon the pressure and temperature ratings of the units :
Pressure Rating (Kg/cm2) 150 170 170 247 247
SHT/RHT (0C) 535/535 537/537 537/565 537/565 565/593
Type of BFP Electrical Turbine Turbine Turbine Turbine
  Driven Driven Driven Driven Driven
Max. Turbine CycleHeatrate (KCal/kWh) 1955 1950 1935 1900 1850
Min. Boiler Efficiency
Sub-Bituminous Indian Coal 0.85 0.85 0.85 0.85 0.85
Bituminous Imported Coal 0.89 0.89 0.89 0.89 0.89
Max. Design Unit Heat rate (KCal/kWh)
Sub-Bituminous Indian Coal 2300 2294 2276 2235 2176
Bituminous Imported Coal 2197 2191 2174 2135 2079
(b)Provided further that in case pressure and temperature parameters of a unit are different from above ratings, the maximum design unit heat rate of the nearest class shall be taken ;
(c)Provided also that where unit heat rate has not been guaranteed but turbine cycle heat rate and boiler efficiency are guaranteed separately by the same supplier or different suppliers, the unit design heat rate shall be arrived at by using guaranteed turbine cycle heat rate and boiler efficiency ;
(d)Provided also that if one or more units were declared under commercial operation prior to 01.4.2016, the heat rate norms for those units as well as units declared under commercial operation on or after 01.4.2017 shall be lower of the heat rate norms arrived at by above methodology and the norms as per Regulation11.1 ;
(e)Note : In respect of units where the boiler feed pumps are electrically operated, the maximum design unit heat rate shall be 40 kCal/kWh lower than the maximum design unit heat rate specified above with turbine driven BFP ;
(f)Gas-based/Liquid-based thermal generating unit(s)/ block(s)
= 1.05 X Design Heat Rate of the unit/block for Natural Gas and RLNG (kCal/kWh)= 1.071 X Design Heat Rate of the unit/block for Liquid Fuel (kCal/kWh)Where, the Design Heat Rate of a unit shall mean the guaranteed heat rate for a unit at 100% MCR and at site ambient conditions ; and the Design Heat Rate of a block shall mean the guaranteed heat rate for a block at 100% MCR, site ambient conditions, zero per cent make up, design cooling water temperature/back pressure.
(d)Auxiliary Energy Consumption :
(i) Coal-based generating stations
200 MW series With Natural Draft cooling Toweror without cooling towers 8.5%
300/330/350/500 MW and above series-Steam Driven Boiler Feed Pumps With Natural Draft cooling Toweror without cooling towers 5.25%
300/330/350/500 MW series-Electrically Driven Boiler Feed Pumps : With Natural Draft cooling Toweror without cooling towers 7.75%
Provided further that for thermal generating stations withinduced draft cooling towers, the norms shall be furtherincreased by 0.5%.
(ii) Gas-based and Naphtha-based generatingstations :
Combined cycle 2.5%  
Open cycle 1.0%  
(e)Secondary Fuel Oil Consumption for Coal based generating stations : 1.0 ml/kWh.
11.5Wherever the station is designed for combined cycle operation, the approval of SLDC shall be required for operation of the station in the open cycle mode.
11.6The Commission may prescribe relaxed operational norms including the norms of Normative Annual Plant Availability Factor contained in these Regulations for a generating station, and these relaxed norms shall be applicable for determination of tariff for such generating station during the Control Period.
11.7In case of renovation and modernisation, derating and rerating of the generating station, norms of operation shall be reviewed and modified accordingly by the Commission.Recovery of Capacity Charge :
11.8The fixed cost of a thermal generating station shall be computed on annual basis, based on norms specified under these Regulations, and recovered on monthly basis under capacity charge. The total capacity charge payable for a generating station shall be shared by its beneficiaries as per their respective percentage share/allocation in the capacity of the generating station.
11.9Full capacity charges shall be recoverable at Normative Annual Plant Availability Factor (NAPAF) specified in Regulation11.4. Recovery of Capacity Charges below the level of Normative Annual Plant Availability Factor (NAPAF) will be on a pro-rata basis. At zero availability, no capacity charges shall be payable.
11.10The capacity charge payable to a thermal generating station for a calendar month shall be calculated in accordance with the following formulae :-CC1 = (AFC/12) x (PAF1/NAPAF ) subject to a ceiling of (AFC/12).CC2 = (AFC/6) x ( PAF2/NAPAF ) subject to a ceiling of (AFC/6) - CC1CC3 = (AFC/4) x ( PAF3/NAPAF) subject to a ceiling of (AFC/4) - (CC1 + CC2)CC4 = (AFC/3) x ( PAF4/NAPAF) subject to a ceiling of (AFC/3) - (CC1+ CC2+ CC3)CC5= (AFC x 5/12) x ( PAF5/NAPAF) subject to a ceiling of (AFC x 5/12) -(CC1+ CC2+ CC3+ CC4)CC6 = (AFC/2) x ( PAF6/NAPAF) subject to a ceiling of (AFC/2) - (CC1+ CC2+ CC3+ CC4+ CC5)CC7 = (AFC x 7/12) x ( PAF7/NAPAF) subject to a ceiling of (AFC x 7/12) -(CC1+ CC2+ CC3+ CC4+ CC5+ CC6)CC8 = (AFC x 2/3) x ( PAF8/NAPAF) subject to a ceiling of (AFC x 2/3) -(CC1+ CC2+ CC3+ CC4+ CC5+ CC6+ CC7)CC9 = (AFC x 3/4) x ( PAF9/NAPAF ) subject to a ceiling of (AFC x 3/4) -(CC1+ CC2+ CC3+ CC4+ CC5+ CC6+ CC7+ CC8)CC10 = (AFC x 5/6) x ( PAF10/NAPAF) subject to a ceiling of (AFC x 5/6) -(CC1+ CC2+ CC3+ CC4+ CC5+ CC6+ CC7+ CC8+ CC9)CC11 = (AFC x 11/12) x (PAF11/NAPAF) subject to a ceiling of (AFC x 11/12) -(CC1+ CC2+ CC3+ CC4+ CC5+ CC6+ CC7+ CC8+ CC9+ CC10)CC12 = (AFC) x (PAFY/NAPAF) subject to a ceiling of (AFC) -(CC1+ CC2+ CC3+ CC4+ CC5+ CC6+ CC7+ CC8+ CC9+ CC10+ CC11) :Provided that in case of generating station or unit thereof under shutdown due to Renovation and Modernisation, the generating company shall be allowed to recover part of AFC which shall include O&M expenses and interest on loan only.Where,AFC = Annual Fixed Cost specified for the year, in RupeesNAPAF = Normative Annual Plant Availability Factor in percentage.PAFN = Per cent Plant Availability Factor achieved up to the end of the nth month.PAFY = Per cent Plant availability factor achieved during the YearCC1, CC2, CC3, CC4, CC5, CC6, CC7, CC8, CC9, CC10, CC11 and CC12 are the capacity charges of 1st, 2nd, 3rd, 4th, 5th, 6th, 7th, 8th, 9th, 10th, 11th and 12th months respectively.
11.11The PAFM up to the end of a particular month and PAFY shall be computed in accordance with the following formula:
11.12The PAFM and PAFY shall be computed in accordance with the following formula:PAFM or PAFY = 10000 x i=1∑ NDCi/{N x IC x(100-AUX)} %Where,AUX-Normative auxiliary energy consumption in percentage ;DCi-Average declared capacity (in ex-bus MW), subject to Regulation11.13, for the ith day of the period i.e. the month or the year as the case may be, as certified by the concerned Load Dispatch Centre after the day is over.IC -Installed Capacity (in MW) of the generating station.N-Number of days during the period i. e. the month or the year as the case may be.Note: - DCi and IC shall exclude the capacity of generating units not declared under commercial operation. In case of a change in IC during the concerned period, its average value shall be taken.
11.13Incentive to a generating station or unit thereof shall be payable at a flat rate of 50 paise/kWh for ex-bus scheduled energy corresponding to scheduled generation in excess of ex-bus energy corresponding to Normative Annual Plant Load Factor (NAPLF).
11.14In case of fuel shortage in a thermal generating station, the Generating Company may propose to deliver a higher MW during peak-load hours by saving fuel during offpeak hours. The SLDC may then specify a pragmatic day ahead schedule for the generating station to optimally utilize its MW and energy capability, in consultation with the beneficiaries. DCi in such an event shall be taken to be equal to the maximum peak-hour ex-power plant MW schedule specified by the SLDC for that day.Energy Charge :
11.15The energy (variable) charge shall cover primary fuel and secondary fuel costs and limestone consumption cost (where applicable), shall be payable by every beneficiary for the total energy scheduled to be supplied to such beneficiary during the calendar month on ex-power plant basis, at the specified energy charge rate of the month (with fuel price adjustment and limestone adjustment).Total energy charge payable to the Generating Company for a month shall be:= (Energy charge rate in Rs./kWh) x {Scheduled energy (ex-bus) for the month in kWh.}
11.16Energy Charge Rate (ECR) in Rupees per kWh on expower plant basis shall be determined to three decimal places in accordance with the following formulae :-
(a)For coal based stations :
ECR = {(GHR -SFC x CVSF) x LPPF/CVPF+SFC x LPSFi+ LC x LPL} x 100/(100 -AUX)}
(b)For gas and liquid fuel based stations :
ECR = GHR x LPPF x 100/{CVPF x (100 -AUX)}Where,AUX-Normative auxiliary energy consumption in percentageCVPF -(a) Weighted Average Gross calorific value of coal as received, in kCal per kg. for coal based stations.
(b)Weighted Average Gross calorific value of primary fuel as received in kCal per kg. per litre or per standard cubic meter, as applicable for lignite, gas and liquid fuel based stations.
(c)In case of blending of fuel from different sources, the weighted average Gross calorific value of primary fuel shall be arrived in proportion to blending ratio.
CVSF -Calorific Value of Secondary Fuel, in kCal per ml.ECR -Energy Charge Rate, in Rupees per kWh sent out.GHR -Gross station Heat Rate, in kCal per kWh.LC = Normative limestone consumption in kg. per kWhLPPF -Weighted average landed price of primary fuel, in Rupees per kg. per litre or per standard cubic metre, as applicable, during the month (In case of blending of fuel from different sources, the weighted average landed price of primary fuel shall be arrived in proportion to blending ratio).LPSFi=Weighted Average Landed Price of Secondary Fuel in Rs./ml during the monthLPL = Weighted average landed price of limestone in Rupees per kg.SFC-Specific fuel oil consumption, in ml. per kWh :Provided that energy charge rate for a gas/liquid fuel based station shall be adjusted for open cycle operation based on certification of Member- Secretary of respective Regional Power Committee for the open cycle operation during the month.
11.17The generating company shall provide to the beneficiaries of the generating station the details of parameters of GCV and price of fuel i. e. domestic coal, imported coal, e-Auction coal, lignite, natural gas, RLNG, liquid fuel etc.:Provided that the details of blending ratio of the imported coal with domestic coal, proportion of e-Auction coal and the weighted average GCV of the fuels as received shall also be provided separately, along with the bills of the respective month :Provided further that copies of the bills and details of parameters of GCV and price of fuel i. e. domestic coal, imported coal, e-Auction coal, lignite, natural gas, RLNG, liquid fuel etc., details of blending ratio of the imported coal with domestic coal, proportion of e-Auction coal shall also be displayed on the website of the generating company. The details should be available on its website on monthly basis for a period of three months.
11.18The landed fuel cost of primary fuel and secondary fuel for tariff determination shall be based on actual weighted average cost of primary fuel and secondary fuel of the three preceding months, and in the absence of landed costs for the three preceding months, latest procurement price of primary fuel and secondary fuel for the generating station, before the start of the tariff period for existing stations and immediately preceding three months in case of new generating stations shall be taken into account.The landed cost of fuel for the month shall include price of fuel corresponding to the grade and quality of fuel inclusive of royalty, taxes and duties as applicable, transportation cost by rail/road or any other means, and, for the purpose of computation of energy charge, and in case of coal/lignite shall be arrived at after considering normative transit and handling losses as percentage of the quantity of coal or lignite dispatched by the coal or lignite supply company during the month as given below :Pithead generating stations : 0.2%Non-pithead generating stations : 0.8% :Provided that in case of pithead stations if coal or lignite is procured from sources other than the pithead mines which is transported to the station through rail, transit loss of 0.8% shall be applicable :Provided further that in case of imported coal, the transit and handling losses shall be 0.2%.Provided that, the tariff of gas based generating stations covered under the "Scheme for Utilization of Gas based power generation capacity" issued by the Government of India, Ministry of Power vide Office Memorandum No. 4/ 2/2015-Th.1 dated 27.3.2015 shall be determined in due consideration of the provisions of that scheme in deviation of the relevant regulations.Fuel Price Adjustment :
11.19The Fuel Price Adjustment (FPA) applicable for calculation of Energy Charges is as follows :
(a)For coal-based generating stations, FPA = A + B
Where,FPA -Fuel Price Adjustment for a month in Paise/ kWh Sent out ;A -Fuel price adjustment for Secondary Fuel oil in Paise/kWh sent out ;B -Fuel price adjustment for Coal in Paise/kWh sent out ;
A=| 10(100-ACn)| *SFCn* (Pom- Pos)
B=| 10(100-ACn)| *[SFCn* {(Pcm/Kcm) - (Pcs/Kcs)}-
SFCn {( K om * P cm / K cm ) -( K os * P cs / K cs )}]Where,SFCn = Normative Specific Fuel Oil consumption in l/ kWh ;SHRn = Normative Gross Station Heat Rate in Kcal/ kWh ;ACn = Normative Auxiliary consumption in percentage ;Pom = Weighted average price of fuel oil on as consumed basis during the month in Rs. /KL ;Kom = Weighted average Gross Calorific Value of fuel oils fired at boiler front for the month in Kcal/Litre ;Pos = Base value of price of fuel oils as taken for determination of base energy charge in tariff order in Rs. / KL ;Kos = Base value of Gross Calorific Value of fuel oils as taken for determination of base energy charge in tariff order in Kcal/Litre ;Pcm = Weighted average price of coal procured and burnt during the month at the power station in Rs./ MT ;Kcm = Weighted average Gross Calorific Value of coal fired at boiler front for the month in Kcal/kg;Pcs= Base value of price of coal as taken for determination of base energy charge in tariff order in Rs. /MTKcs = Base value of gross calorific value of coal as taken for determination of base energy charge in tariff order in kCal/Kg
(b)For gas based thermal power plants, the Fuel Price Adjustment is calculated using the following formula :
FPA| 10* SHRn* (Pm/Km)-(Ps/Ks)|
Where :FPA = Fuel Price Adjustment for a month in Paise/kWh sent out ;SHRn = Normative Gross Station Heat Rate expressed in kCal/kWh ;ACn = Normative Auxiliary Consumption in percentage ;Pm = Weighted average price of Gas or Liquid fuel as per PSL for the month in Rs. / 1000 SCM of Rs./ KL or Rs./MT ;Km = Weighted average Gross Calorific Value of Gas or Liquid fuel for the month in Kcal/ SCM or kCal/ Litre or kCal/ Kg ;Pm = Base price of Gas or Liquid fuel as taken for determination of base energy charge in tariff order in Rs. / 1000 SCM of Rs./ KL or Rs./MT ;Ks = Base value of Gross Calorific Value of Gas or Liquid fuel as taken determination of base energy charge in tariff order in Kcal/ SCM or kCal/Litre or kCal/ Kg ;
11.20Any variation in fuel prices on account of change in the Gross Calorific Value (GCV) of coal or gas or liquid fuel shall be adjusted on a monthly basis on the basis of weighted average GCV of coal or gas or liquid fuel in stock, received and burnt and weighted average landed cost incurred by the generating company for procurement of coal, oil, or gas or liquid fuel, as the case may be for a power station.
11.21Initially, the Base value of price of fuel oils, price of coal incurred by the Generating Company/ generating station shall be taken based on actuals of the weighted average price of the three preceding months and in the absence of weighted average landed costs for the three preceding months, latest respective weighted average procurement price for the generating station, before the start of the year.Initially the Base value of gross calorific value of fuel oils and gross calorific value of coal incurred by the Generating Company/ Generating Station shall be taken based on actuals of the weighted average gross calorific value of the three preceding months and in the absence of weighted average gross calorific value for the three preceding months, latest weighted average gross calorific value for the generating station, before the start of the year.
11.22In its bills, the generating company shall separately indicate rate of energy charges at base price of primary and secondary fuel specified by the Commission and the fuel price adjustment. No separate petition needs to be filed with the Commission for fuel price adjustment.