Central Electricity Regulatory Commission (CERC) on October 27, 2021 has issued a notification to notify the escalation rates for the purpose of payment. The rates are applicable for the period from October 1, 2021 to March 31, 2022.
The Annual Escalation Rates for the purpose of payment for Procurement of Power by Distribution Licensees are namely: -
• Escalation rate for domestic coal - 0.00%
• Escalation rate for domestic gas - -30.54%
• Escalation rates for different escalable sub-components of energy charge for plants based on imported coal –
- Escalation rate for imported coal - 115.33%
- Escalation rate for transportation of imported coal - 63.12%
- Escalation rate for inland handling of imported coal - 7.62%
• Escalation rates for inland transportation charges for coal (Upto and beyond 2000 KM) - 0.00%
• Escalation rate for inland transportation charges for gas - 0.00%
• Escalation rates for different escalable sub-components of energy charge for plants based on imported gas –
- Escalation rate for imported gas - 58.22%
- Escalation rate for transportation of imported gas - 63.12%
- Escalation rate for inland handling of imported gas - 7.62%
• Inflation rate to be applied to indexed capacity charge component - 7.62%
• Inflation rate to be applied to indexed energy charge component in cases of captive fuel source - 16.34%.
[Notification No. Eco-2/2021-CERC]
