Tariff Regulations
Centre
The CERC has issued the Terms and Conditions of Tariff regulations,2019 which has come into force from 1 April 2019 and will remain valid till 31st March 2024 i.e., for a period of five years. The primary purpose of these regulations is to determine the tariff of transmission projects having a COD on or after 1st April 2019.
CERC MYT Regulations, 2019
[Clause No. 1.1]
[Clause No. 1.2]
[Clause No. 3.14]
Gas Insulated Substation (GIS): 25 years
Transmission line (including HVAC & HVDC): 35 years
[Clause No. 3.73]
a. Efficiency in the implementation of the project not involving approved change in scope of such project, change in statutory levies or change in law
or force major events; and
b. Delay in execution of the project on account of contractor or supplier or agency of the generating company or transmission licensee.
[Clause No. 22.1]
a. Force Majeure events;
b. Change in law; and
c. Land acquisition except where the delay is attributable the transmission licensee.
[Clause No. 22.2]
[Clause No. 61.1]
- The non-tariff net income from rent of land or buildings, sale of scrap and advertisements shall be shared between the beneficiaries and the transmission licensee in the ratio 50:50.
[Clause No. 62]
2. dated 18 Sept. 2019
(1) AC system: 98.00%;
(2) HVDC bi-pole links 95.00% and HVDC back-to-back stations: 95.00%:
Provided that the normative annual transmission availability factor of the
HVDC bi-pole links shall be 85%for first twelve months from the date of
commercial operation.
b) For Incentive, NATAF shall be as under:
(1) AC system: 98.50%;
(2) HVDC bi-pole links and HVDC back-to-back Stations: 97.50%:
Provided that no Incentive shall be payable for availability beyond 99.75%:
transmission system or part shall be computed for each region separately for AC and
DC system as under:
For AC system:
a) For TAFM n< 98.00%
AFC x (NDMn/NDY) x (TAFMn/98.00%)
b) For TAFMn: 98.00%< TAFMn< 98.50%
AFC x (NDMn/NDY) x (1)
c) For TAFMn: 98.50%< TAFMn< 99.75%
AFC x (NDMn/NDY) x (TAFM/98.50%)
d) For TAFMn> 99.75%
AFC x (NDMn/NDY) x (99.75%/98.50%)
For HVDC bi-pole links and HVDC back-to-back Stations:
TC1 = AFC x (NDM1 / NDY) x (TAFM1/NATAF)
TC2 = AFC x (NDM2 / NDY) x (TAFM2/NATAF) – TC1
TC3 = AFC x (NDM3 / NDY) x (TAFM3/NATAF) – (TC1+TC2)
TC4 = AFC x (NDM4 / NDY) x (TAFM4/NATAF) – (TC1+TC2+TC3)
….
TC11 = AFC x (NDM11/NDY) x (TAFM11/NATAF) - (TC1+TC2+….+TC10)
TC12 = AFC x (TAFY/NATAF) – (TC1+TC2+….+TC11);
If,
(i) TAFM: 95.00%< TAFM < 97.50%, then TAFM=NATAF;
(ii) TAFM: 97.50%< TAFM < 99.75%, then NATAF=97.50%; and
(iii) For TAFM > 99.75%, then TAFM=99.75% and NATAF= 97.50%.
Where,
TCn = Transmission charges inclusive of incentive up to the nth month
AFC = Annual fixed cost specified for the year in rupees
NATAF = Normative Annual Transmission Availability Factor in percentage
NDMn= No of days upto the end of nth month of the financial year
NDY = No. of days in the year
TAFMn= Transmission availability factor upto the end of the nth month of the year
in percentage
TAFY = Transmission availability factor in percent for the year.
[Clause No. 1.1]
RoE in respect of additional capitalization after cut-off date beyond the original scope, shall be computed at the weighted average rate of interest on actual loan portfolio of the transmission system or in the absence of actual loan portfolio, the weighted average rate of interest of the transmission licensee, as a whole shall be considered, subject to ceiling of 14%.
[Clause No. 1.1]
Where a transmission licensee and its long-term customers have mutually agreed to charge lower tariff in respect of a particular transmission system in terms of Clauses (1) to (3) of this Regulation, the said agreed tariff shall not be revised upwards at the time of truing up based on the capital cost and additional capital expenditures in accordance with these regulations.
Provided that where the trued up tariff is lower than the agreed tariff, the transmission licensee shall charge such trued-up tariff only.