Section 5(5) in Rajasthan Electricity Regulatory Commission (tariff for Captive Power Plants) Regulations, 2007
(5)(a)As per RERC (Terms & Conditions for determination of tariff) Regulations 2004 as modified, fixed charge component shall comprise of various annual fixed costs converted to rate per kWh of energy corresponding to delivery/ sale of energy at 80% PLF and levelised for the life of the plant in determining the annual fixed cost.(i)The pre-tax return on equity shall be computed at the rate of 14% of equity component.(ii)Income Tax and minimum alternate tax (MAT) during normal hours for determination of the fixed cost and interest charge on outstanding loan based on next five years average shall be allowed.(iii)Advance against depreciation (AAD) shall not be allowed.(b)Annual Fixed Charge (AFC) will comprise of total annual expenses of CPP computed on the basis of expenses and return allowed in terms of Part II read with Regulations 40, 42 & 43 of the RERC (Terms and Conditions for determination of Tariff) Regulations, 2004 to the extent modified in these Regulations.Provided that for determination of tariff, on case to case basis, for CPPs with installed capacity of 60 MW and above, capital cost shall be considered as capital cost actually incurred or Rs 4 Crore per MW of installed capacity, whichever is lower.Provided further that for the determination of normative tariff for CPPs having installed capacity less than 60 MW, capital cost shall be considered as Rs 4 Crore per MW of installed capacity.(c)Payment of Fixed Charges shall be made on monthly basis and based on delivered energy.(d)Normative parameters vide sub-regulation(a) &(b) above shall be subject to review at the end of tariff period.
