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Union of India - Section

Section 3 in Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019

3. Definitions.

- In these regulations, unless the context otherwise requires:-
(1)"Act" means the Electricity Act, 2003 (36 of 2003);
(2)"Additional Capital expenditure" means the capital expenditure incurred, or projected to be incurred after the date of commercial operation of the project by the generating company or the transmission licensee, as the case may be, in accordance with the provisions of these regulations;
(3)"Additional Capitalisation" means the additional capital expenditure admitted by the Commission after prudence check, in accordance with these regulations;
(4)"Admitted capital cost" means the capital cost which has been allowed by the Commission for servicing through tariff after due prudence check in accordance with the relevant tariff regulations;
(5)"Auxiliary Energy Consumption" or "AUX" in relation to a period in case of a generating station means the quantum of energy consumed by auxiliary equipment of the generating station, such as the equipment being used for the purpose of operating plant and machinery including switchyard of the generating station and the transformer losses within the generating station, expressed as a percentage of the sum of gross energy generated at the generator terminals of all the units of the generating station;Provided that auxiliary energy consumption shall not include energy consumed for supply of power to housing colony and other facilities at the generating station and the power consumed for construction works at the generating station and integrated coal mine;Provided further that auxiliary energy consumption for compliance of revised emission standards, sewage treatment plant and external coal handling plant (jetty and associated infrastructure) shall be considered separately.
(6)"Auditor" means an auditor appointed by a generating company or a transmission licensee, as the case may be, in accordance with the provisions of sections 224, 233B and 619 of the Companies Act, 1956 (1 of 1956), as amended from time to time or Chapter X of the Companies Act, 2013 (18 of 2013) or any other law for the time being in force;
(7)"Bank Rate" means the one year marginal cost of lending rate (MCLR) of the State Bank of India issued from time to time plus 350 basis points;
(8)"Beneficiary" in relation to a generating station covered under clauses (a) or (b) of sub-section 1 of section 79 of the Act, means a distribution licensee who is purchasing electricity generated at such generating station by entering into a Power Purchase Agreement either directly or through a trading licensee on payment of capacity charges and energy charges;Provided that where the distribution licensee is procuring power through a trading licensee, the arrangement shall be secured by the trading licensee through back to back power purchase agreement and power sale agreement.Provided further that beneficiary shall also include any person who has been allocated capacity in any inter-State generating station by Government of India.
(9)"Capital Cost" means the capital cost as determined in accordance with Regulation 19 of these regulations;
(10)"Change in Law" means occurrence of any of the following events:
(a)enactment, bringing into effect or promulgation of any new Indian law; or
(b)adoption, amendment, modification, repeal or re-enactment of any existing Indian law; or
(c)change in interpretation or application of any Indian law by a competent court, Tribunal or Indian Governmental Instrumentality which is the final authority under law for such interpretation or application; or
(d)change by any competent statutory authority in any condition or covenant of any consent or clearances or approval or licence available or obtained for the project; or
(e)coming into force or change in any bilateral or multilateral agreement or treaty between the Government of India and any other Sovereign Government having implication for the generating station or the transmission system regulated under these regulations.
(11)"Commission" means the Central Electricity Regulatory Commission referred to in sub-section (1) of section 76 of the Act;
(12)"Communication System" means communication system as defined in sub-clause (h) of clause (i) of Regulation 2 of the Central Electricity Regulatory Commission (Communication System for inter-State transmission of electricity) Regulations, 2017;
(13)"Competitive Bidding" means a transparent process for procurement of equipment, services and works in which bids are invited by the project developer by open advertisement covering the scope and specifications of the equipment, services and works required for the project, and the terms and conditions of the proposed contract as well as the criteria by which bids shall be evaluated, and shall include domestic competitive bidding and international competitive bidding;
(14)"Cut-off Date" means the last day of the calendar month after thirty six months from the date of commercial operation of the project;
(15)"Date of Commercial Operation" or "COD" shall have the same meaning as defined in the Grid Code as amended from time to time;
(16)"Declared Capacity" or "DC" in relation to a generating station means, the capability to deliver ex-bus electricity in MW declared by such generating station in relation to any time-block of the day as defined in the Grid Code or whole of the day, duly taking into account the availability of fuel or water, and subject to further qualification in these regulations;
(17)"De-capitalisation" for the purpose of the tariff under these regulations, means reduction in Gross Fixed Assets of the project as admitted by the Commission corresponding to inter-unit transfer of assets or the assets taken out from service;
(18)"De-commissioning" means removal from service of a generating station or a unit thereof or transmission system including communication system or element thereof, after it is certified by the Central Electricity Authority or any other authorized agency, either on its own or on an application made by the project developer or the beneficiaries or both, that the project cannot be operated due to non-performance of the assets on account of technological obsolescence or uneconomic operation or a combination of these factors;
(19)"Design Energy" means the quantum of energy which can be generated in a 90% dependable year with 95% installed capacity of the hydro generating station;
(20)"Element" means an asset which has been distinctively defined under the scope of the transmission project in the Investment Approval such as transmission lines including line bays and line reactors, substations, bays, compensation device, Interconnecting Transformers;
(21)"Existing Project" means a project which has been declared under commercial operation on a date prior to 1.4.2019;
(22)"Expansion project" shall include any addition of new capacity to the existing generating station or augmentation of the transmission system, as the case may be;
(23)"Expenditure Incurred" means the fund, whether the equity or debt or both, actually deployed and paid in cash or cash equivalent, for creation or acquisition of a useful asset and does not include commitments or liabilities for which no payment has been released;
(24)"Extended Life" means the life of a generating station or unit thereof or transmission system or element thereof beyond the period of useful life, as may be determined by the Commission on case to case basis;
(25)"Force Majeure" for the purpose of these regulations means the events or circumstances or combination of events or circumstances including those stated below which partly or fully prevents the generating company or transmission licensee to complete the project within the time specified in the Investment Approval, and only if such events or circumstances are not within the control of the generating company or transmission licensee and could not have been avoided, had the generating company or transmission licensee taken reasonable care or complied with prudent utility practices:
(a)Act of God including lightning, drought, fire and explosion, earthquake, volcanic eruption, landslide, flood, cyclone, typhoon, tornado, geological surprises, or exceptionally adverse weather conditions which are in excess of the statistical measures for the last hundred years; or
(b)Any act of war, invasion, armed conflict or act of foreign enemy, blockade, embargo, revolution, riot, insurrection, terrorist or military action; or
(c)Industry wide strikes and labour disturbances having a nationwide impact in India; or
(d)Delay in obtaining statutory approval for the project except where the delay is attributable to project developer;
(26)"Fuel Supply Agreement" means the agreement executed between the generating company and the fuel supplier for generation and supply of electricity to the beneficiaries;
(27)"Generating Station" shall have the same meaning as defined under sub-Section 30 of Section 2 of the Act and for the purpose of these regulations shall also include stages or blocks or units of a generating station;
(28)"Generating Unit" or "Unit" in relation to a thermal generating station (other than combined cycle thermal generating station) means steam generator, turbine-generator and auxiliaries, or in relation to a combined cycle thermal generating station, means turbine-generator and auxiliaries or combustion turbine-generator, associated waste heat recovery boiler, connected steam turbine- generator and auxiliaries, and in relation to a hydro generating station means turbine-generator and its auxiliaries;
(29)"Grid Code" means the Central Electricity Regulatory Commission (Indian Electricity Grid Code) Regulations, 2010;
(30)"Gross Calorific Value" or "GCV" in relation to a thermal generating station means the heat produced in kCal by complete combustion of one kilogram of solid fuel or one litre of liquid fuel or one standard cubic meter of gaseous fuel, as the case may be;
(31)"GCV as Received" means the GCV of coal as measured at the unloading point of the thermal generating station through collection, preparation and testing of samples from the loaded wagons, trucks, ropeways, Merry-Go- Round (MGR), belt conveyors and ships in accordance with the IS 436 (Part-1/ Section 1)- 1964:Provided that the measurement of coal shall be carried out through sampling by third party to be appointed by the generating companies in accordance with the guidelines, if any, issued by Central Government:Provided further that samples of coal shall be collected either manually or through hydraulic augur or through any other method considered suitable keeping in view the safety of personnel and equipment:Provided also that the generating companies may adopt any advance technology for collection, preparation and testing of samples for measurement of GCV in a fair and transparent manner;
(32)"Gross Station Heat Rate" or "SHR" means the heat energy input in kCal required to generate one kWh of electrical energy at generator terminals of a thermal generating station;
(33)"Implementation Agreement" means any agreement or covenant entered into (i) between the transmission licensee and the generating company or (ii) between transmission licensee and developer of the interconnected transmission system for the execution of generation and transmission projects in a coordinated manner, laying down the project implementation schedule and mechanism for monitoring the progress of the projects;
(34)"Indian Governmental Instrumentality" means the Government of India, Governments of State (where the project is located) and any ministry or department or board or agency controlled by Government of India or Government of State where the project is located, or quasi-judicial authority constituted under the relevant statutes in India;
(35)"Infirm Power" means electricity injected into the grid prior to the date of commercial operation of a unit of the generating station in accordance with Central Electricity Regulatory Commission (Grant of Connectivity, Longterm Access and Medium-term Open Access in inter-State Transmission and related matters) Regulations, 2009;
(36)"Input Price" means the price of coal or lignite sourced from the integrated mines at which the coal or lignite is transferred to the generating station for the purpose of computing the energy charges for generation and supply of electricity to the beneficiaries and determined in accordance with Chapter 9 of these regulations;
(37)"Installed Capacity" or "IC" means the summation of the name plate capacities of all the units of the generating station or the capacity of the generating station reckoned at the generator terminals, as may be approved by the Commission from time to time;
(38)"Integrated Mine" means the captive mine (allocated for use in one or more identified generating station) or basket mine (allocated to a generating company for use in any of its generating stations) or both being developed by the generating company for supply of coal or lignite to one or more specified end use generating stations for generation and sale of electricity to the beneficiaries;
(39)"Inter-State Generating Station" or "ISGS" has the meaning as assigned in the Grid Code;
(40)"Investment Approval" means approval by the Board of the generating company or the transmission licensee or Cabinet Committee on Economic Affairs (CCEA) or any other competent authority conveying administrative sanction for the project including funding of the project and the timeline for the implementation of the project:Provided that the date of Investment Approval shall reckon from the date of the resolution of the Board of the generating company or the transmission licensee where the Board is competent to accord such approval and from the date of sanction letter of competent authority in other cases;
(41)"Landed Fuel Cost" means the total cost of coal (including biomass in case of co-firing), lignite or the gas delivered at the unloading point of the generating station and shall include the base price or input price, washery charges wherever applicable, transportation cost (overseas or inland or both) and handling cost, charges for third party sampling and applicable statutory charges;
(42)"Long-Term Customer" shall have the same meaning as "Long Term Customer" as defined in the Central Electricity Regulatory Commission (Grant of Connectivity, Long-term Access and Medium-term Open Access in inter-State Transmission and related matters) Regulations, 2009;
(43)"Maximum Continuous Rating" or "MCR" in relation to a generating unit of the thermal generating station means the maximum continuous output at the generator terminals, guaranteed by the manufacturer at rated parameters, and in relation to a block of a combined cycle thermal generating station means the maximum continuous output at the generator terminals, guaranteed by the manufacturer with water or steam injection (if applicable) and corrected to 50 Hz grid frequency and specified site conditions;
(44)"New Project" means the generating station or unit thereof and the transmission system or element thereof achieving its commercial operation on or after 1.4.2019;
(45)"Operation and Maintenance Expenses" or "O&M expenses" means the expenditure incurred for operation and maintenance of the project, or part thereof, and includes the expenditure on manpower, maintenance, repairs and maintenance spares, consumables, insurance and overheads and fuel other than used for generation of electricity;
(46)"Original Project Cost" means the capital expenditure incurred by the generating company or the transmission licensee, as the case may be, within the original scope of the project up to the cut-off date, and as admitted by the Commission;
(47)"Plant Availability Factor" or "(PAF)" in relation to a generating station for any period means the average of the daily declared capacities (DCs) for all the days during the period expressed as a percentage of the installed capacity in MW less the normative auxiliary energy consumption;
(48)"Plant Load Factor" or "(PLF)" in relation to thermal generating station or unit for a given period means the total sent out energy corresponding to scheduled generation during the period, expressed as a percentage of sent out energy corresponding to installed capacity in that period and shall be computed in accordance with the following formula:NPLF = 10000 x ∑SGi/ {N x IC x (l00-AUXn)} %i=1Where,IC = Installed Capacity of the generating station or unit in MW,SGi = Scheduled Generation in MW for the ith time block of the period,N = Number of time blocks during the period, andAUXn = Normative Auxiliary Energy Consumption as a percentage of gross energy generation;
(49)"Procedure Regulations" means the Central Electricity Regulatory Commission (Procedure for making of application for determination of tariff, publication of the application and other related matters) Regulations, 2004;
(50)"Project" means:
(i)in case of thermal generating station, all components of the thermal generating station and includes integrated coal mine, biomass pellet handling system, pollution control system, effluent treatment plan, as may be required;
(ii)in case of hydro generating station, all components of the hydro generating station and includes dam, intake water conductor system, power generating station, as apportioned to power generation; and iii) in case of transmission, all components of the transmission system including communication system;
(51)"Prudence Check" means scrutiny of reasonableness of any cost or expenditure incurred or proposed to be incurred in accordance with these regulations by the generating company or the transmission licensee, as the case may be;
(52)"Pumped Storage Hydro Generating Station" means a hydro generating station which generates power through energy stored in the form of water energy, pumped from a lower elevation reservoir to a higher elevation reservoir;
(53)"Rated Voltage" means the manufacturer's design voltage at which the transmission system is designed to operate and includes such lower voltage at which any transmission line is charged or for the time being charged, in consultation with long-term customers;
(54)"Revised Emission Standards" in respect of thermal generating station means the revised norms notified as per Environment (Protection) Amendment Rules, 2015 or any other Rules as may be notified from time to time;
(55)"Run-of-River Generating Station" means a hydro generating station which does not have upstream pondage;
(56)"Run-of-River Generating Station with Pondage" means a hydro generating station with sufficient pondage for meeting the diurnal variation of power demand;
(57)"Scheduled Commercial Operation Date or 'SCOD" shall mean the date(s) of commercial operation of a generating station or generating unit thereof or transmission system or element thereof and associated communication system as indicated in the Investment Approval or as agreed in power purchase agreement or transmission service agreement as the case may be, whichever is earlier;
(58)"Scheduled Energy" means the quantum of energy scheduled by the concerned Load Despatch Centre to be injected into the grid by a generating station for a given time period;
(59)"Scheduled Generation" or "SG" at any time or for any period or time block means schedule of ex-bus generation in MW or MWh, given by the concerned Load Despatch Centre;Note. - For open cycle gas turbine generating station or a combined cycle generating station if the average frequency for any time-block, is below 49.52 Hz but not below 49.02 Hz and the scheduled generation is more than 98.5% of the declared capacity, the scheduled generation shall be deemed to have been reduced to 98.5% of the declared capacity, and if the average frequency for any time-block is below 49.02 Hz and the scheduled generation is more than 96.5% of the declared capacity, the scheduled generation shall be deemed to have been reduced to 96.5% of the declared capacity. In such an event of reduction of scheduled generation of gas turbine generating station, the corresponding drawl schedule of beneficiaries shall be corrected in proportion to their scheduled drawl with adjustment of transmission losses on post facto basis.
(60)"Sharing Regulations" means Central Electricity Regulatory Commission (Sharing of Transmission Charges and Losses in inter-State Transmission System) Regulations, 2010;
(61)"Small Gas Turbine Generating Station" means and includes open cycle gas turbine or combined cycle generating station with gas turbines in the capacity range of 50 MW or below;
(62)"Start Date or Zero Date" means the date indicated in the Investment Approval for commencement of implementation of the project and where no such date has been indicated, the date of Investment Approval shall be deemed to be Start Date or Zero Date;
(63)"Statutory Charges" comprises taxes, cess, duties, royalties and other charges levied through Acts of the Parliament or State Legislatures or by Indian Government Instrumentality under relevant statutes;
(64)"Storage Type Generating Station" means a hydro generating station associated with storage capacity to enable variation of generation of electricity according to demand;
(65)"Thermal Generating Station" means a generating station or a unit thereof that generates electricity using fossil fuels such as coal, lignite, gas, liquid fuel or combination of these as its primary source of energy or co-firing of biomass with coal;
(66)"Transmission Line" shall have the same meaning as defined in sub-section (72) of Section 2 of the Act;
(67)"Transmission Service Agreement" means the agreement entered into between the transmission licensee and the Designated ISTS Customers in accordance with the Sharing Regulations and shall include the Bulk Power Transmission Agreement and Long Term Access Agreement;
(68)"Transmission System" means a line or a group of lines with or without associated sub-station, equipment associated with transmission lines and sub-stations identified under the scheme as per the Investment Approval(s) and shall include associated communication system;
(69)"Trial Operation" in relation to transmission system shall have the same meaning as specified in Clause (5) of Regulation 6.3A of Grid Code;
(70)"Trial Run" in relation to generating station shall have the same meaning as specified in Clause (3) of Regulation 6.3A of Grid Code;
(71)"Sub-Station" shall have the same meaning as defined in sub-section (69) of section 2 of the Act;
(72)"Unloading Point" means the point within the premises of the coal or lignite based thermal generating station where the coal or lignite is unloaded from the rake or truck or any other mode of transport;
(73)"Useful Life" in relation to a unit of a generating station, integrated mines, transmission system and communication system from the date of commercial operation shall mean the following:
(a) Coal/Lignite based thermal generatingstation 25 years
(b) Gas/Liquid fuel based thermal generatingstation 25 years
(c) AC and DC sub-station 25 years
(d) Gas Insulated Substation (GIS) 25 years
(e) Hydro generating station including pumpedstorage hydro generating stations 40 years
(f) Transmission line (including HVAC &HVDC) 35 years
(g) Communication system 15 years
Provided that the extension of life of the projects beyond the completion of their useful life shall be decided by the Commission on case to case basis;
(74)The words and expressions used in these regulations and not defined herein but defined in the Act or any other regulations of the Commission, shall have the meaning assigned to them under the Act or any other regulations of the Commission.