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Union of India - Section

Section 30 in Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014

30. Computation and Payment of Capacity Charge and Energy Charge for Thermal Generating Stations.

(1)The fixed cost of a thermal generating station shall be computed on annual basis, based on norms specified under these regulations, and recovered on monthly basis under capacity charge. The total capacity charge payable for a generating station shall be shared by its beneficiaries as per their respective percentage share / allocation in the capacity of the generating station.
(2)The capacity charge payable to a thermal generating station for a calendar month shall be calculated in accordance with the following formulae:CC1 = ((AFC/12) (PAF1 / NAPAF) subject to ceiling of (AFC/12))CC2 = ((AFC/6) (PAF2 / NAPAF) subject to ceiling of (AFC/6)) - CC1CC3 = ((AFC/4) (PAF3 / NAPAF) subject to ceiling of (AFC/4)) - (CC1 + CC2)CC4 = ((AFC/3) (PAF4 / NAPAF) subject to ceiling of (AFC/3)) - (CC1 + CC2 + CC3)CC5 = ((AFC x 5/12) (PAF5 / NAPAF) subject to ceiling of (AFC x 5/12)) - (CC1 + CC2 + CC3 + CC4)CC6 = ((AFC/2) (PAF6 / NAPAF) subject to ceiling of (AFC/2)) - (CC1 + CC2 + CC3 + CC4 + CC5)CC7= ((AFC x 7/12) (PAF7 / NAPAF) subject to ceiling of (AFC x 7/12)) - (CC1 + CC2 + CC3 + CC4 + CC5 + CC6)CC8 = ((AFC x 2/3) (PAF8 / NAPAF) subject to ceiling of (AFC x 2/3)) - (CC1 + CC2 + CC3 + CC4 + CC5 + CC6 + CC7)CC9 = ((AFC x ¾) (PAF9 / NAPAF) subject to ceiling of (AFC x ¾)) - (CC1 + CC2 + CC3 + CC4 + CC5 + CC6 + CC7 + CC8)CC10= ((AFC x 5/6) (PAF10 / NAPAF) subject to ceiling of (AFC x 5/6)) - (CC1 + CC2 + CC3 + CC4 + CC5 + CC6 + CC7 + CC8 + CC9)CC11 = ((AFC x 11/12) (PAF11 / NAPAF) subject to ceiling of (AFC x 11/12)) - (CC1 + CC2 + CC3 + CC4 + CC5 + CC6 + CC7 + CC8 + CC9 + CC10)CC12 = ((AFC) (PAFY / NAPAF) subject to ceiling of (AFC)) - (CC1 + CC2 + CC3 + CC4 + CC5 + CC6 + CC7 + CC8 + CC9 + CC10 + CC11)Provided that in case of generating station or unit thereof or transmission system or an element thereof, as the case may be, under shutdown due to Renovation and Modernisation, the generating company or the transmission licensee shall be allowed to recover part of AFC which shall include O&M expenses and interest on loan only.Where,AFC Annual fixed cost specified for the year, in Rupees.NAPAF = Normative annual plant availability factor in percentage.PAFN = Percent Plant availability factor achieved upto the end of the nth month.PAFY = Percent Plant availability factor achieved during the YearCC1, CC2, CC3, CC4, CC5, CC6, CC7, CC8, CC9, CC10, CC11 and CC12 are the Capacity Charges of 1st, 2nd, 3rd, 4th, 5th, 6th, 7th, 8th, 9th, 10th, 11th and 12th months respectively.
(3)The PAFM upto the end of a particular month and PAFY shall be computed in accordance with the following formula:
N|- PAFM or PAFY = 10000 x| ∑DCi/ {N x IC X (100 - AUX)}%|- i=1
Where,AUX=Normative auxiliary energy consumption in percentage.DCi = Average declared capacity (in ex-bus MW), for the ith day of the period i.e. the month or the year as the case may be, as certified by the concerned load dispatch centre after the day is over.IC = Installed Capacity (in MW) of the generating stationN= Number of days during the period.Note: - DCi and IC shall exclude the capacity of generating units not declared under commercial operation. In case of a change in IC during the concerned period, its average value shall be taken.
(4)Incentive to a generating station or unit thereof shall be payable at a flat rate of 50 paise/kWh for ex-bus scheduled energy corresponding to scheduled generation in excess of ex-bus energy corresponding to Normative Annual Plant Load Factor NAPLF) as specified in regulation 36 (B).
(5)The energy charge shall cover the primary and secondary fuel cost and limestone consumption cost (where applicable), and shall be payable by every beneficiary for the total energy scheduled to be supplied to such beneficiary during the calendar month on ex-power plant basis, at the energy charge rate of the month (with fuel and limestone price adjustment). Total Energy charge payable to the generating company for a month shall be:(Energy charge rate in Rs./kWh) x {Scheduled energy (ex-bus) for the month in kWh.}
(6)Energy charge rate (ECR) in Rupees per kWh on ex-power plant basis shall be determined to three decimal places in accordance with the following formulae:
(a)For coal based and lignite fired stations
ECR = {(GHR - SFC x CVSF) x LPPF / CVPF+SFC x LPSFi + LC x LPL} x 100 / (100 - AUX)
(b)For gas and liquid fuel based stations
ECR = GHR x LPPF x 100 / {CVPF x (100 - AUX)}Where,AUX = Normative auxiliary energy consumption in percentage.CVPF = (a) Weighted Average Gross calorific value of coal as received, in kCal per kg for coal based stations
(b)Weighted Average Gross calorific value of primary fuel as received, in kCal per kg, per litre or per standard cubic meter, as applicable for lignite, gas and liquid fuel based stations.
(c)In case of blending of fuel from different sources, the weighted average Gross calorific value of primary fuel shall be arrived in proportion to blending ratio.
CVSF = Calorific value of secondary fuel, in kCal per ml.ECR = Energy charge rate, in Rupees per kWh sent out.GHR = Gross station heat rate, in kCal per kWh.LC = Normative limestone consumption in kg per kWh.LPL = Weighted average landed price of limestone in Rupees per kg.LPPF = Weighted average landed price of primary fuel, in Rupees per kg, per litre or per standard cubic metre, as applicable, during the month. (In case of blending of fuel from different sources, the weighted average landed price of primary fuel shall be arrived in proportion to blending ratio)SFC = Normative Specific fuel oil consumption, in ml per kWh.LPSFi = Weighted Average Landed Price of Secondary Fuel in Rs./ml during the month Provided that energy charge rate for a gas/liquid fuel based station shall be adjusted for open cycle operation based on certification of Member Secretary of respective Regional Power Committee for the open cycle operation during the month.
(7)The generating company shall provide to the beneficiaries of the generating station the details of parameters of GCV and price of fuel i.e. domestic coal, imported coal, e-auction coal, lignite, natural gas, RLNG, liquid fuel etc., as per the forms prescribed at Annexure-I to these regulations:Provided that the details of blending ratio of the imported coal with domestic coal, proportion of e-auction coal and the weighted average GCV of the fuels as received shall also be provided separately, along with the bills of the respective month:Provided further that copies of the bills and details of parameters of GCV and price of fuel i.e. domestic coal, imported coal, e-auction coal, lignite, natural gas, RLNG, liquid fuel etc., details of blending ratio of the imported coal with domestic coal, proportion of e-auction coal shall also be displayed on the website of the generating company. The details should be available on its website on monthly basis for a period of three months.
(8)The landed cost of fuel for the month shall include price of fuel corresponding to the grade and quality of fuel inclusive of royalty, taxes and duties as applicable, transportation cost by rail / road or any other means, and, for the purpose of computation of energy charge, and in case of coal/lignite shall be arrived at after considering normative transit and handling losses as percentage of the quantity of coal or lignite dispatched by the coal or lignite supply company during the month as given below:
Pithead generating stations : 0.2%
Non-pithead generating stations : 0.8%
Provided that in case of pit head stations if coal or lignite is procured from sources other than the pit head mines which is transported to the station through rail, transit loss of 0.8% shall be applicable:Provided further that in case of imported coal, the transit and handling losses shall be 0.2%.
(9)The landed price of limestone shall be taken based on procurement price of limestone for the generating station, inclusive of royalty, taxes and duties as applicable and transportation cost.
(10)In case of part or full use of alternative source of fuel supply by coal based thermal generating stations other than as agreed by the generating company and beneficiaries in their power purchase agreement for supply of contracted power on account of shortage of fuel or optimization of economical operation through blending, the use of alternative source of fuel supply shall be permitted to generating station:Provided that in such case, prior permission from beneficiaries shall not be a precondition, unless otherwise agreed specifically in the power purchase agreement:Provided further that the weighted average price of use of alternative source of fuel shall not exceed 30% of base price of fuel computed as per clause (11) of this regulation:Provided also that where the energy charge rate based on weighted average price of use of fuel including alternative source of fuel exceeds 30% of base energy charge rate as approved by the Commission for that year or energy charge rate based on weighted average price of use of fuel including alternative sources of fuel exceeds 20% of energy charge rate based on based on weighted average fuel price for the previous month, whichever is lower shall be considered and in that event, prior consultation with beneficiary shall be made not later than three days in advance.
(11)The Commission through the specific tariff orders to be issued for each generating station shall approve the energy charge rate at the start of the tariff period. The energy charge so approved shall be the base energy charge rate at the start of the tariff period. The base energy charge rate for subsequent years shall be the energy charge computed after escalating the base energy charge rate approved at the start of the tariff period by escalation rates for payment purposes as notified by the Commission from time to time for under competitive bidding guidelines.
(12)The tariff structure as provided in this regulation may be adopted by the Department of Atomic Energy, Government of India for the nuclear generating stations by specifying annual fixed cost (AFC), normative annual plant availability factor (NAPAF), installed capacity (IC), normative auxiliary power consumption (AUX) and energy charge rate (ECR) for such stations.