Section 45 in Jammu and Kashmir State Electricity Regulatory Commission (Terms and Conditions for Tariff determination from Renewable Energy Sources) Regulations, 2013
45. Fuel Price Indexation Mechanism.
(1)In case of biomass power projects, the following indexing mechanism for adjustment of fuel prices for each year of operation will be applicable for determination of applicable variable charge component of tariff, in case developer wishes to opt for indexing mechanism:P (n) =P (n-1) * {a * (WPI(n)/WPI(n-1)) + b * (1+IRC) (n-1) + c *(Pd(n)/Pd(n-1))}Where,P (n) = Price per tonne of biomass for the nth year to be considered for tariff determinationP (n-1) = Price per tonne of biomass for the (n-1)th year to be considered for tariff determination. P1 shall be Biomass price for FY 2013-14 as specified under Regulation 44.a = Factor representing fuel handling costb =Factor representing fuel costc = Factor representing transportation costIRC(n-1) = Average Annual Inflation Rate for indexed energy charge component in case of captive coal mine source (in %) to be applicable for (n- 1)th year, as may be specified by CERC for 'Payment purpose' as per Competitive Bidding GuidelinesPd n = Weighted average price of HSD for nth year.Pd n-1 = Weighted average price of HSD for (n-1)th year.WPI n = Whole sale price index for the month of April of nth yearWPI n-1 = Wholesale price index for month of April of (n-1)th year.Where a, b & c will be specified by the Commission from time to time. In default, these factors shall be 0.2, 0.6 & 0.2 respectively.(2)Variable Charge for the nth year shall be determined as under:i.e. VCn = VC1x (Pn / P1) or VCn = VC1x (1.05)(n-1) (optional)Where,VC1represents the Variable Charge based on Biomass Price P1 for FY
