Section 30 in Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019
30. Return on Equity.
(1)Return on equity shall be computed in rupee terms, on the equity base determined in accordance with Regulation 18 of these regulations.(2)Return on equity shall be computed at the base rate of 15.50% for thermal generating station, transmission system including communication system and run-of-river hydro generating station, and at the base rate of 16.50% for the storage type hydro generating stations including pumped storage hydro generating stations and run-of-river generating station with pondage:Provided that return on equity in respect of additional capitalization after cut-off date beyond the original scope excluding additional capitalization due to Change in Law, shall be computed at the weighted average rate of interest on actual loan portfolio of the generating station or the transmission system;Provided further that:i. In case of a new project, the rate of return on equity shall be reduced by 1.00% for such period as may be decided by the Commission, if the generating station or transmission system is found to be declared under commercial operation without commissioning of any of the Restricted Governor Mode Operation (RGMO) or Free Governor Mode Operation (FGMO), data telemetry, communication system up to load dispatch centre or protection system based on the report submitted by the respective RLDC;ii. in case of existing generating station, as and when any of the requirements under (i) above of this Regulation are found lacking based on the report submitted by the concerned RLDC, rate of return on equity shall be reduced by 1.00% for the period for which the deficiency continues;iii. in case of a thermal generating station, with effect from 1.4.2020:(a)rate of return on equity shall be reduced by 0.25% in case of failure to achieve the ramp rate of 1% per minute;(b)an additional rate of return on equity of 0.25% shall be allowed for every incremental ramp rate of 1% per minute achieved over and above the ramp rate of 1% per minute, subject to ceiling of additional rate of return on equity of 1.00%:Provided that the detailed guidelines in this regard shall be issued by National Load Dispatch Centre by 30.6.2019.
