Key Changes Proposed in CERC “Draft” 2019-24 Tariff Regulation w.r.
t 2014-19
By A S Gupta DGM(OPN) , NTPC SSTPS – 17.12.2018
SNo Aspect /Norm of the Present FY 2014-19
Regulation
1 New Emission Control ---
Equipment - Capex
2 Tariff Components A) RoE -15.5% ,
Additional ROE of 0.5%
for timely COD
B) Annual Cap
Charge(FC) -Monthly
+ Var Charge (EC),
C) Depreciation upto
90% ( i.e., Salvage
Value 10%)
D) Interest on WC on
30daysCoal+30 days
CoalStock +60 days
Receivables
E) Debt equity Ratio
70:30
E) Debt equity Ratio 70:30 same as previous
3 O&M Expenses in ₹ 16.00 L in FY 14-15
Lakhs/MW for 500MW 20.43 L in FY 18-19
Series Units
4 Special Allowance inlieu 7.5L/MWescalated
of R&M at 6.35% yearly
5 Transit & Handling Pit Head – 0.2%
Losses allowed in Coal Non Pit Head – 0.8%
6 Norms of Operation
A Normative Availability NAPAF – 85%
B PLF forIncentive NAPLF – 85%
C Gross Station Heat Rate Existing
(2375–40) kcal/kwh
(500MW with TDBFP)
For 200/210/250 MW
units , HR =2450
kcal/Kwh
New Units CoD after
01.04.2014
1.045 x Design HR
with Max Limits
D Sec fuel Oil Consumptn 0.5ml/kwh
E APC (>500MW Sets with 5.25%
TDBFP &NDCT)
Proposed FY 2019-24
Shall be added to Capital Cost – Shall be
Allowed Separately
A) RoE Kept Same at 15.5%, But No
additional ROE for timely COD
B) Availability during Peak / Off Peak
Hours of the Day Differentiated.
Normative Factors are for Quarter
1. Cap Charge – Peak Hrs in Month
(25%More) &Cap Charge- Off Peak Hrs
+ Incentive @65p/kwh(Peak) &
@50p/kwh(OffPeak) for SG energy > Ex-
Bus energy corresponding to NQPLF
2. Var Charges(EC)
C) Depreciation Upto 95% (Salvage 5%)
D) 20 Days Coal Stock + Advance
Payment of 30 Days Coal + 45 Days
Receivables
20.38 L in FY 19-20
23.12 L in FY 23-24
9.5L/MW Fixed for 2019-24
Compensation allowance discontinued
for old plants
Pit Head – 0.2%
Non Pit Head (<1000 KM) – 0.8% Non
Pit Head (>1000 KM) – 1.2%
NQPAF –83%
NQPLF –85%
Existing Old -Same as Present i.e.,
(2375 – 40) kcal/kwh
(500MW with TDBFP)
For 200/210/250 MW units , HR =2410
kcal/Kwh
Units COD after 01.04.2009
1.05xDesignHRwithMax Limitsof As
Before
0.5ml/kwh
5.75%
 APC (200MW Sets &NDCT)
7 Monthly Billing
8 Recovery of Statutory
Charges ,duties , water
Cess etc by state /
central Govts
9 Rebate / Late payment
Surcharge
10 Sharing of Gains with
Beneficiaries
11 Special Provision for Old
Plants (CoD > 25 years)
12 Capex on Ash Handling,
Transportation ,Ash
Utilization facilities
&Additional Capex on
Ash Dyke Raising
13 Initial spares of plant and
machinery
14 Water and security
expenses
15
8.5% Same as previous 8.5%
Hard Copy Bills Scanned Original of Bills Sent through
Official Mail ID of Authorized Person of
Gen Company is Valid mode of Billing
Not Specified Clearly Specified that Gen Company can
recover from beneficiaries including
those on APC
2% <2 days 1% Same Rebates, But
2-30 days Late > 45 Days @1.25% per month
Late >60 Days @1.5%
CDM / Norm Gain In Addition to Savings on a/c of
Benefits Shared SHR,Sp.Oil,APC & Loan Re-Financing, CDM
which are shared at 50:50,
AnyNonTariffIncomelike
Income from Rent of land or
buildings; sale of scrap; statutory
investments; advances to suppliers
or contractors; Rental from
staff quarters
or contractors;
from advertisements;
investments and bank
balances - ALSO to be Shared
---- GenCo & Beneficiary may agree for Total
FC+VC to bepaid on SG Energy Balance
Energy can be sold by Genco as
it deems fit.
Not Specified Clearly Allowed for Existing Plants and
New Plants
4% Same as previous 4%
Only water charges was Water and security charges allowed
allowed additional to additional to O&M
O&M expenses expenses
Land used for renewable energy will not
be true up in capital cost of
thermal plant