Section 2 in Jammu and Kashmir State Electricity Regulatory Commission (Terms and Conditions for Determination of Multi Year Generation Tariff) Regulations, 2016
2. Scope and extent of application.
- 2.1. These Regulations shall apply in the following cases :-(a)Where tariff for a generating station or a unit thereof is required to be determined by the Commission under section 56 of the J&K Electricity Act, 2010 ;(b)Where tariff has been determined bilaterally between the State Government and the Utility prior to the allotment of the project to the Utility for construction, operation and maintenance and for which power purchase agreement has been approved by the Commission based upon such tariff, the Commission shall adopt such tariff together with the terms and conditions of such approved power purchase agreement ;(c)Where the Government of J&K notifies a policy to encourage investment in the State by allowing setting up of generating plants, out of which certain percentage of installed capacity as decided by the GoJK from time to time, can be procured by the Distribution Licensees of the State of J&K for which the tariff may be determined under Section 56 of the Electricity Act, 2010.(d)Where tariff may be determined by the Commission for hydroelectric projects which meet the following criteria :-(i)The Commission is satisfied that the project site has been allotted to the developer by the Government of J&K after following a transparent two stage process. The first stage should be for prequalification on the basis of criteria of financial strength, past experience of developing infrastructure projects of similar size, past track record of developing projects on time and within estimated costs, turnover and ability to meet performance guarantee etc. In the second stage, bids are to be called on the basis of quantifiable parameter, such as, additional free power in excess of percentage of free power, as notified by the State Government, equity participation offered to the Government of J&K, or any other parameter to be notified by the State Government from time to time.(ii)Concurrence of CEA (if required under Section 8 of the Act), financial closure, award of work and long term Power Purchase Agreement (PPA) (of the duration of 35 years or more) of the capacity specified in (iii) below with distribution licensees are completed by 15-08-2022.(iii)Long term PPA is firmed up for 60% or more of the total saleable design energy, balance being allowed for merchant sale :Provided that distribution licensees can extend the duration of long term PPA beyond 35 years for a further period of 15 years at the existing terms and conditions subject to the approval of Appropriate Commission :Provided further that nothing contained in this Regulation shall apply to Pumped Storage Plants (PSP).(iv)The time period for commissioning of all the units of the project shall ordinarily be fixed at four years from the date of approval of the commissioning schedule by the Commission. However, the Commission may, after recording reasons in writing, fix longer time period for hydroelectric projects (reservoir as well as run-of- river projects) of more than 100 MW capacity. Agreed timelines to achieve the fixed commissioning schedule along with penalty for delay shall be decided by the Commission. The Commission shall allow pass through the Interest During Construction (IDC) and Financing Cost (FC) only up to the period of delay not attributable to the developer. The approval of CEA, wherever required under Section 8 of the Act, shall be sought.(v)Award of contracts for supply of equipment and construction of the project, either through a turnkey or through well defined packages, are done on the basis of international competitive bidding.Notwithstanding anything contained in Regulation 2.1 (d) above, the developers of hydroelectric projects of more than 100 MW design capacity for which sites have been awarded earlier by following a transparent process and on the basis of pre-determined set of criteria would have the option of getting the tariff determined by the Commission for the power to be sold through long term PPA on the basis of cost plus under Section 56 of the Act.2.2These Regulations shall not apply to,-(a)The tariff of generating companies, owned or controlled by the Central Government.(b)Generating stations whose tariff has been discovered through tariff based competitive bidding in accordance with the guidelines issued under Section 57 of J&K Electricity Act, 2010.(c)Generating stations based on renewable sources of energy whose tariff is determined in accordance with the JKSERC (Terms and Conditions for Tariff Determination from Renewable Energy Sources) Regulations, 2013 and amendments thereof.(d)The tariff of generating companies, other than owned or controlled by the Central Government as specified in Regulation (a) above, if such generating companies enter into or otherwise have a composite scheme for generating and sale of electricity in more than one state.2.3These Regulations shall extend to the whole of the State of Jammu and Kashmir.
