The Central Electricity Regulatory Commission (CERC) on March 15, 2024, issued the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2024.
The following provisions have been stated:
• Sale of Infirm Power:
Supply of infirm power shall be in accordance with the Central Electricity Regulatory Commission (Deviation Settlement Mechanism and Related matters) Regulations, 2022:
Provided that any revenue earned by the generating company from the supply of infirm power after accounting for the fuel expenses shall be applied in adjusting the capital cost accordingly.
• Special Provisions for Tariff for Thermal Generating Stations that have Completed 25 Years of Operation from the Date of Commercial Operation:
In respect of a thermal generating station that has completed 25 years of operation from the date of commercial operation, the generating company and the beneficiary may agree on an arrangement, including provisions for target availability and incentive, where in addition to the energy charge, capacity charges determined under these regulations shall also be recovered based on scheduled generation.
• In-principle approval in specific circumstances:
The generating company for a specific generating station or for an integrated mine or the transmission licensee undertaking any additional capitalization on account of change in law events or force majeure conditions may file petition for in-principle approval for incurring such expenditure after prior notice to the beneficiaries or the long term customers, as the case may be, along with underlying assumptions, estimates and justification for such expenditure if the estimated expenditure exceeds 10% of the admitted capital cost of the project or Rs.100 Crore, whichever is lower.
This notification will come into force from April 01, 2024 and, unless reviewed earlier or extended by the Commission, shall remain in force for a period of five years from April 01, 2024 to March 31, 2029.
For further information, kindly refer to the document attached.
[Notification No. L-1/268/2022/CERC]
