The Himachal Pradesh Electricity Regulatory Commission (HPERC) on July 3, 2020 modifies the Draft Himachal Pradesh Electricity Regulatory Commission (Promotion of Generation from the Renewable Energy Sources and Terms and Conditions for Tariff Determination) (Fourth Amendment) Regulations, 2020.
Following modifications have been carried out in the Regulation:
• The commission has extended the 3rd control period timeline from April 1, 2020 to September 30, 2023 instead of April 1, 2020 to March 31, 2025 as stated in the draft regulations.
• Regulation 22B which implements the procedure for capital subsidy has been modified and a proviso shall be inserted therein, “Provided that the capital subsidy under the schemes of the Central or State Government or their agencies shall be adjusted in the normative capital cost and the cost so arrived, after adjustment, shall be considered for computing Debt-Equity Components for the purposes of determination of generic levellised tariffs.”
• Regulation 24B has been modified which states the loan to be determined on the basis of tariff tenure, following proviso shall be inserted, “For the purpose of determination of tariff, loan tenure of 15 years shall be considered.”
• Regulation 26B which implements Normative Return equity has been substituted and following proviso shall be inserted, “The normative return on equity shall be 14%. The normative Return on Equity shall be grossed up by the latest available notified Minimum Alternate Tax (MAT) rate for the first 20 years of the Tariff Period and by the latest available notified Corporate Tax rate for the remaining Tariff Period’.
• Under Regulation 34B which implements the cost of installed capacity on the category of small hydro project, the table has been substituted with a new table.
The objections or suggestions in this behalf should be addressed to the Secretary, Himachal Pradesh Electricity Regulatory Commission, Vidyut Aayog Bhawan, Block-37, SDA Complex, Kasumpti-171009(HP). The date of submission of objections/suggestions on the draft amendment regulations also stands extended accordingly.
[Notification No. HPERC/428]
