Tariff

Tariff

Availability Based tariff

The Availability Based Tariff (ABT) came into force in the North Eastern Region with effect from 1st November, 2003. Under the ABT regime the generator has to declare its generation availability on day-to-day basis to the RLDC. The beneficiaries have to submit their requisitions on daily basis. The RLDC draws up the daily injection and drawal schedules on the basis of the capacity declarations and requisitions.

Procedure For Tariff Determination

  • Each generating station has a separate tariff.
  • Tariff is determined by CERC based on the Tariff Regulations in force at the time and the submissions made by the generating station.
  • Tariff is determined in two parts viz. Annual Capacity Charges and Energy Charge.
  • The Annual Capacity Charges is based on Annual Fixed Charges. The Energy Charge Rates for hydro stations is calculated on the basis of Annual Fixed Charge and Annual Design Energy. In the case of thermal stations it is based on the actual landed cost of fuel and the actual station heat rate achieved.
  • The Annual Fixed Charge (AFC) consists of the following:
     
    • Interest on loan
    • Depreciation
    • Return on equity
    • Interest on working capital
    • O&M expenses
  • The Central Electricity Regulatory Commission (Terms and Conditions of Tariff), Regulations issued every five years, specifies the norms of operation, normative parameters and methods for computation of Capacity Charge and Energy Charge. Following are some of the highlights:
     
    • The Normative Annual Plant Availability Factor (NAPAF) of each generating station
    • AFC is determined based on prudent check for each of the Power Station.
    • The PAF for a period means the average of the daily Declared Capacities (DCs) for the number of days during that period expressed as a percentage of the Installed Capacity in MW reduced by the Normative Auxiliary Energy Consumption.
    • In the case of hydro stations 50 % of the AFC is recoverable as Capacity Charge and the balance 50 % as Energy Charge.
    • In the case of thermal stations apart from 100 % AFC being recoverable as Capacity Charge, cost of fuel is recoverable as Energy Charge on the basis of actual station heat rate achieved.
    • Petitions for determination of tariff for the Tariff Period 01.04.2024 to 31.03.2029 in respect of all the operating stations have been filed before CERC and tariff order has been issued.
    • Till issuance of the tariff orders for 2024-29 tariff period by CERC provisional billing will be done on the basis of tariff orders for 2019-24 subject to adjustment subsequently.