Section 19 in Bihar Electricity Regulatory Commission (Multi Year Distribution Tariff) Regulations, 2015
19. Power Purchase Quantum and Cost.
(a)Based on the demand estimates, the power purchase quantum and cost shall be calculated.(b)The approved Power Purchase Quantum and cost shall be net of expected revenue from sale of surplus power, if any, during lean period.(c)Revenue from sale of surplus power shall be estimated at per unit weighted average price of bilateral purchases.(d)If there is a short term requirement of power by the Distribution Licensee and such requirement is on account of any factor beyond the control of the Licensee (shortage/non-availability of fuel, snow capping of hydro resources inhibiting power generation in sources stipulated in the plan, unplanned/forced outages of power generating units or acts of God), then the cost shall be passed on to the customers with the approval of the Commission.Provided that the extra cost of the power so purchased shall normally be allowed subject to maximum rate of average cost of power purchase from long term and medium term sources. However notwithstanding any provisions under these Regulations, Commission may consider to allow a rate higher than the average cost of power purchase from long term and medium term sources for extra power so purchased on the basis of actual cost incurred subject to the maximum of the rate at which transaction of energy has taken place in the energy exchange, provided the licensee justifies the rate before the Commission with all relevant documents.19.1Power Purchase Planning. - (a) Comprehensive Power Procurement Plan shall be submitted as part of MYT petition to the Commission.(b)The Distribution Licensee shall prepare a short term (less than 1 year) and a medium term (5 years) plan, separately stated for peak and off peak periods, for unrestricted demand of electricity for each consumer category in its area of operation as per Regulation 16 and Regulation 17 of these regulations.(c)The demand projected shall be grossed-up with distribution losses (as determined by Regulation 18 of these regulations) and transmission losses to arrive at power purchase requirement for the Distribution Licensee.(d)The Distribution Licensee shall assess quantum of power available at its disposal from state's generating plants, central generating utilities, IPPs etc. and month-wise deficit/surplus schedule shall be developed, separately stated for both peak and off-peak period:(e)The procurement plan for medium term shall be through competitive bidding.(f)Long-term procurement plan shall include proposals about acquisition of demand side resources through "standard bid" or "competitive demand side resource bidding process". The procurement shall also include power from plants using renewable sources of energy at least to the extent stipulated by the Commission.(g)Due to in-firm nature of power from renewable sources of energy, alternate firm source of power (equivalent in terms of energy units) may be specified in the procurement plan (over and above total energy required).(h)Fixed cost pertaining to such alternate firm source of power, if any, shall be allowed to the Distribution Licensee and actual cost shall be Trued-up.
