Department of Management Sciences (DoMS) Indian Institute of Technology Kanpur
Ceremony Image RCP PMEO Valedictory is scheduled on 4th January 2025, from 11:00 AM to 12:00 PM.

Terms and Conditions for Determination of Generation Tariff Regulations, 2024 [Draft]

Tariff Determination (MYT) send Tariff- Generation, Transmission, SLDC, Distribution
10 December 2024 Keywords: Capitalisation, Competitive Bidding, De-capitalisation, Gross Calorific Value, Plant Load Factor, Un


The OERC notified "Terms and Conditions for Determination of Generation Tariff Regulations, 2024".​ The key highlights of this draft is mentioned below:

Objective: The draft regulation, will guide the determination of generation tariffs for existing and future generating stations, excluding those with tariffs set through competitive bidding or by the CERC, and those based on renewable energy sources. ​ The regulations cover various aspects including the determination of tariffs based on capital costs and operational efficiency, components of tariffs for thermal and hydro generating stations, norms for plant availability and efficiency, and provisions for billing, payment, and sharing of financial gains. The aim is to encourage competition, efficiency, and optimal investment in the electricity generation sector in Odisha.

❖ Suggestion on GCV Calculation Methodology:- 4th proviso to Clause 3(hh) of the draft document states that _"Provided that GCV of as Received coal shall be found out by taking GCV of coal on as "billed basis" and allowing an adjustment for total moisture as per the formula given as under: _
GCV X (1-TM)
(1-IM)
Where: GCV = Gross Calorific Value of coal on as "billed basis"
TM = Total Moisture 
IM = Inherent Moisture"

According to the order in Petition No: 152/MP/2018 [1], "the Commission, in its various tariff orders, had provisionally determined energy charges based on the "as billed" GCV of coal, due to the unavailability of data on the "as received" GCV. This provisional determination was made with the application of a moisture correction formula and was subject to adjustment once the actual "as received" GCV data became available".

The adjustment for moisture based approach was to be applicable on an interim basis. The Commission should ensure that GCV "as received" should be measured by an independent third party (as prescribed under the CERC regulations), on the basis of joint sampling of coal received. Furthermore, the regulation does not clarify about the basis for total moisture and inherent moisture in the coal to be used in the above formula.

Since coal cost contributes significantly to the tariff to be paid by the discoms and hence the final consumers, adequate transparency and accountability should be ensured for this exercise. Data related to coal despatch, receipt including quantum, price, date of despatch and receipt, inventory at hand, GCV as billed and GCV as received for all generating units should archived and made available in the public domain through the Commission's or other suitable website.




picture_as_pdf Download File




Recent Discussions
Related Blogs
Go to Top