Section 43 in Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019
43. Computation and Payment of Energy Charge for Thermal Generating Stations.
(1)The energy charge shall cover the primary and secondary fuel cost and limestone consumption cost (where applicable), and 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 energy charge rate of the month (with fuel and limestone price adjustment). Total Energy charge payable to the generating company for a month shall be:Energy Charges = (Energy charge rate in Rs./kWh) x {Scheduled energy (ex-bus) for the month in kWh}(2)Energy charge rate (ECR) in Rupees per kWh on ex-power plant basis shall be determined to three decimal places in accordance with the following formulae:(a)For coal based and lignite fired stations:ECR = {(SHR - 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 = SHR x LPPF x 100 / {(CVPF) x (100 - AUX)}Where,AUX =Normative auxiliary energy consumption in percentage.CVPF = (a) Weighted Average Gross calorific value of coal as received, in kCal per kg for coal based stations less 85 Kcal/Kg on account of variation during storage at generating station;(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;SHR = Gross station heat rate, in kCal per kWh;LC = Normative limestone consumption in kg per kWh;LPL = Weighted average landed cost of limestone in Rupees per kg;LPPF = Weighted average landed fuel cost 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 fuel cost of primary fuel shall be arrived in proportion to blending ratio);SFC = Normative Specific fuel oil consumption, in ml per kWh;LPSFi = Weighted Average Landed Fuel Cost of Secondary Fuel in Rs./ml during the month:Provided that energy charge rate for a gas or liquid fuel based station shall be adjusted for open cycle operation based on certification of Member Secretary of respective Regional Power Committee during the month.(3)In case of part or full use of alternative source of fuel supply by coal based thermal generating stations other than as agreed by the generating company and beneficiaries in their power purchase agreement for supply of contracted power on account of shortage of fuel or optimization of economical operation through blending, the use of alternative source of fuel supply shall be permitted to generating station:Provided that in such case, prior permission from beneficiaries shall not be a pre-condition, unless otherwise agreed specifically in the power purchase agreement:Provided further that the weighted average price of alternative source of fuel shall not exceed 30% of base price of fuel computed as per clause (5) of this Regulation:Provided also that where the energy charge rate based on weighted average price of fuel upon use of alternative source of fuel supply exceeds 30% of base energy charge rate as approved by the Commission for that year or exceeds 20% of energy charge rate for the previous month, whichever is lower shall be considered and in that event, prior consultation with beneficiary shall be made at least three days in advance.(4)Where biomass fuel is used for blending with coal, the landed cost of biomass fuel shall be worked out based on the delivered cost of biomass at the unloading point of the generating station, inclusive of taxes and duties as applicable. The energy charge rate of the blended fuel shall be worked out considering consumption of biomass based on blending ratio as specified by Authority or actual consumption of biomass, whichever is lower.(5)The Commission through specific tariff orders to be issued for each generating station shall approve the energy charge rate at the start of the tariff period. The energy charge rate so approved shall be the base energy charge rate for the first year of the tariff period. The base energy charge rate for subsequent years shall be the energy charge computed after escalating the base energy charge rate by escalation rates for payment purposes as notified by the Commission from time to time under competitive bidding guidelines.(6)The tariff structure as provided in this Regulation 42 and Regulation 43 of these regulations may be adopted by the Department of Atomic Energy, Government of India for the nuclear generating stations by specifying annual fixed cost (AFC), normative annual plant availability factor (NAPAF), installed capacity (IC), normative auxiliary energy consumption (AUX) and energy charge rate (ECR) for such stations.
