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State of Rajasthan - Section

Section 114 in Rajasthan Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) Regulations, 2009

114. Estimate of power purchase requirement.

(1)The Distribution Licensee in accordance with the RERC (Power purchase and procurement process of distribution licensee) Regulations, 2004 shall prepare a five-year plan for procurement of power to serve the demand for electricity in its area of supply and submit such plan to the Commission for approval along with the MYT Petition. The long-term procurement plan should be prepared considering the: -
(a)Quantitative forecast of the unrestricted demand for electricity, within the area of supply, from each tariff category over the Control Period;
(b)An estimate of the quantities of electricity supply from the approved sources of generation and power purchase;
(c)Measures proposed to be implemented as regards energy conservation and energy efficiency;
(d)Minimum share of renewable energy percentage;
(e)Requirement for new sources of power generation and/or procurement;
(f)Cost estimates for power procurement;
(g)Approved level of transmission and distribution losses:
Provided that the long-term power procurement of surplus energy from Captive Power Plants (CPPs) shall be governed under the RERC (CPP) Regulations.
(2)Any variation, during any half year of a financial year, in the quantum or cost of power procured and any procurement from sources other than that mentioned in the power procurement plan, approved by the Commission, in excess of five (5) percent of the quantum or cost, as the case may be, of power procurement for such half year, as approved by the Commission in the power procurement plan of the Distribution Licensee, shall be done only with the prior approval of the Commission:
(3)Where there has been a shortfall or failure in the supply of electricity from any approved source of supply during the financial year, the Distribution Licensee may enter into a short-term arrangement or agreement for procurement of power without the prior approval of the Commission where the tariff for power procured under such arrangement or agreement is determined in accordance with:
(a)a transparent process of bidding in accordance with competitive bidding guidelines issued by the Central Government
(b)The terms and conditions contained in Part V of these Regulations
(c)When the Commission has specified the minimum and maximum ceiling price for power procurement under any contingency situation and power purchase price is within that band.
(d)When the Distribution Licensee has identified a new short-term source of supply from which power can be procured at a tariff that reduces his approved total power procurement cost. Such new sources shall include power procurement from trading licensees as well as power procurement through other trading platforms such as power exchange.
(e)Procurement by way of energy exchange under 'banking' transactions provided such procurement through banking unless merit order so warrants, and
(f)When faced with emergency conditions that threaten the stability of the distribution system or when directed to do so by the State Load Despatch Centre to prevent grid failure:
Provided that in such cases, the distribution licensee shall intimate the Commission within 15 days of such power procurement for which prior approval was not taken.
(4)For purchase of electricity from sources outside the state, the transmission loss level agreed to in PPA or worked out from energy accounts of RLDC/SLDC shall be accepted.
(5)The Commission shall scrutinize and approve the power purchase requirement with such modifications as deemed fit for the ensuing year and for the tariff period.