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State of Rajasthan - Section

Section 5 in Rajasthan Electricity Regulatory Commission (tariff for Captive Power Plants) Regulations, 2007

5. Tariff for sale by CPP to licensee under "Firm Power" supply.

(1)A CPP, irrespective of any saleable capacity, having installed capacity of 60 MW and above, will have option to either get the tariff determined for firm supply on case to case basis as a generating company by filing petition or may opt for normative fixed charges (levelised) and normative variable charges as determined by the Commission under these regulation. Fixed charges shall be the levelised fixed charges on per kWh basis and variable charges per kWh for supply during different time of the day shall be admissible as under:-
(a)during off peak hours: full variable charges and no fixed charges,
(b)during normal supply hours: full variable charges plus 90% of fixed charges and
(c)during peak hours for supply: full variable charges plus 90% of fixed charges and incentive @ 50 paisa per KWh.
(2)Alternatively the tariff, determined through transparent competitive bidding, may be as adopted by the Commission under section 63 of the Act. In case the tariff is determined by such bidding process, the provisions of CPP Regulation for determination of tariff will not apply.
(3)The Commission shall determine Tariff for procurement of power by licensee from CPP under firm power supply arrangement subject to following conditions:
(a)The contract period shall be one year or more.
(b)The variation in contracted capacity to be declared as day ahead schedule shall not exceed ± 20% of contracted capacity. The load factor of power supply for the settlement period determined on contracted capacity shall not be less than 70%.
(c)The variable charge component shall be determined in accordance with sub-regulation (4) below.
(d)Fixed charge component shall be payable for the average of Ex-works power delivered during each time block and shall be determined in accordance with sub-regulation (1) above read with sub-regulation (5) below.
(4)Variable charge component shall cover fuel costs and shall be worked out on the basis of ex-bus energy delivered from the generating station as per following formula:
(a)Variable Charge (VC) in Rs/ kWh,shall be the sum of the cost of normative quantities of primary and secondary fuel for delivering ex-bus one kWh of electricity in Rs/kWh and shall be computed as under:
VC =| 100 x {Pp x (Qp)n + Ps x (Qs)n }(100-(AUXn) )
Where,Pp = Price of primary fuel namely coal or lignite, as the case may be, in Rs/kg.
(Qp)n = Normative Quantity of primary fuel required for generation of one kWh of electricity at generator terminals in kg and shall be computed on the basis of normative gross Station Heat Rate (less heat contributed by secondary fuel oil for coal/lignite based generating stations) and gross calorific value of coal/lignite as fired.
Ps = Price of Secondary fuel oil in Rs./ml,
(Qs)n =Normative Quantity of Secondary fuel oil in ml/kWh, and
AUXn= Normative Auxiliary Energy Consumption as % of gross generation.Provided that Pp & Ps, for the year shall be based on audited figures of previousyear & shall be subjected to prudence check by the Commission.Parameters Units Unit Size of CPP (MW)
(b)Station-wise energy charges will be worked out for the purpose of billing based on weighted average rate of actual units generated
(c)Adjustment to variable charge on account of variation in price of fuels shall be carried out on quarterly basis based on actual cost of fuel and calorific value of fuel, during immediate preceding quarter.
Provided that for any variation in REC exceeding 10% of that approved by the Commission during fiscal year, shall be subject to approval of the Commission for which necessary calculations with supporting documents shall be provided in support of the claim.
(d)Normative performance parameters for the determination of variable charge component under these Regulations shall be as under:
Parameters Units Unit Size of CPP (MW)
<30 MW 30 but <60 MW 60 but <110 MW 110 MW & above
Station Heat rate Kcal/k Wh 3200 3000 2700 As per RERC (Terms & Conditions fordetermination of Tariff) Regulations, 2004
Specific Oil Consumption ml/kWH 3.00 2.50 2.00
Auxiliary Consumption factor % 11.00% 10.75% 10.50%
Note. - In case of CPP having number of units of different rating, their average rating will be considered.
(5)
(a)As per RERC (Terms & Conditions for determination of tariff) Regulations 2004 as modified, fixed charge component shall comprise of various annual fixed costs converted to rate per kWh of energy corresponding to delivery/ sale of energy at 80% PLF and levelised for the life of the plant in determining the annual fixed cost.
(i)The pre-tax return on equity shall be computed at the rate of 14% of equity component.
(ii)Income Tax and minimum alternate tax (MAT) during normal hours for determination of the fixed cost and interest charge on outstanding loan based on next five years average shall be allowed.
(iii)Advance against depreciation (AAD) shall not be allowed.
(b)Annual Fixed Charge (AFC) will comprise of total annual expenses of CPP computed on the basis of expenses and return allowed in terms of Part II read with Regulations 40, 42 & 43 of the RERC (Terms and Conditions for determination of Tariff) Regulations, 2004 to the extent modified in these Regulations.
Provided that for determination of tariff, on case to case basis, for CPPs with installed capacity of 60 MW and above, capital cost shall be considered as capital cost actually incurred or Rs 4 Crore per MW of installed capacity, whichever is lower.Provided further that for the determination of normative tariff for CPPs having installed capacity less than 60 MW, capital cost shall be considered as Rs 4 Crore per MW of installed capacity.
(c)Payment of Fixed Charges shall be made on monthly basis and based on delivered energy.
(d)Normative parameters vide sub-regulation(a) &(b) above shall be subject to review at the end of tariff period.