Section 28 in Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014
28. Interest on Working Capital.
(1)The working capital shall cover:(a)Coal-based/lignite-fired thermal generating stations(i)Cost of coal or lignite and limestone towards stock, if applicable, for 15 days for pit-head generating stations and 30 days for non-pit-head generating stations for generation corresponding to the normative annual plant availability factor or the maximum coal/lignite stock storage capacity whichever is lower;(ii)Cost of coal or lignite and limestone for 30 days for generation corresponding to the normative annual plant availability factor;(iii)Cost of secondary fuel oil for two months for generation corresponding to the normative annual plant availability factor, and in case of use of more than one secondary fuel oil, cost of fuel oil stock for the main secondary fuel oil;(iv)Maintenance spares @ 20% of operation and maintenance expenses specified in regulation 29;(v)Receivables equivalent to two months of capacity charges and energy charges for sale of electricity calculated on the normative annual plant availability factor; and(vi)Operation and maintenance expenses for one month.(b)Open-cycle Gas Turbine/Combined Cycle thermal generating stations(i)Fuel cost for 30 days corresponding to the normative annual plant availability factor, duly taking into account mode of operation of the generating station on gas fuel and liquid fuel;(ii)Liquid fuel stock for 15 days corresponding to the normative annual plant availability factor, and in case of use of more than one liquid fuel, cost of main liquid fuel duly taking into account mode of operation of the generating stations of gas fuel and liquid fuel;(iii)Maintenance spares @ 30% of operation and maintenance expenses specified in Regulation 29;(iv)Receivables equivalent to two months of capacity charge and energy charge for sale of electricity calculated on normative plant availability factor, duly taking into account mode of operation of the generating station on gas fuel and liquid fuel; and(v)Operation and maintenance expenses for one month.(c)Hydro generating station including pumped storage hydro electric generating station and transmission system including communication system:(i)Receivables equivalent to two months of fixed cost;(ii)Maintenance spares @ 15% of operation and maintenance expenses specified in regulation 29; and(iii)Operation and maintenance expenses for one month.(2)The cost of fuel in cases covered under sub-clauses (a) and (b) of clause (1) of this regulation shall be based on the landed cost incurred (taking into account normative transit and handling losses) by the generating company and gross calorific value of the fuel as per actual for the three months preceding the first month for which tariff is to be determined and no fuel price escalation shall be provided during the tariff period.(3)Rate of interest on working capital shall be on normative basis and shall be considered as the bank rate as on 1.4.2014 or as on 1st April of the year during the tariff period 2014-15 to 2018-19 in which the generating station or a unit thereof or the transmission system including communication system or element thereof, as the case may be, is declared under commercial operation, whichever is later.(4)Interest on working capital shall be payable on normative basis notwithstanding that the generating company or the transmission licensee has not taken loan for working capital from any outside agency.
