Académique Documents
Professionnel Documents
Culture Documents
2014-19
Commission
Section 62
(Tariff Determination)
Section 63
(Tariff Adoption)
Competitive Bidding
II - Petition by
Generator
Petition filed by
generator.
Copy to
beneficiaries
Hosting petition
on website
Hearings
conducted by
CERC and
Tariff orders
issued
Prudence check
conducted by the
CERC
Oral hearings
conducted where
the stakeholders
can participate
4
Draft Regulations
issued- 6th Dec
2013
NTPCs comments on
Draft Regulations
submitted- 29th
January 2014
Applicable from
01.04.2014
Process for
formulation of
Regulations starts
Approach paper
issued by CERC,
comments
submitted (Aug 13)
Public Hearing
conducted on 15th16th January
Final Regulations
issued on 21st
February 2014
Tariff Basics
Cost-Plus Tariff
Two-part tariff
Capacity Charge (for recovery of annual fixed cost
components)
Energy Charge (for recovery of primary and
secondary fuel costs)
Incentive allowed separately
Capital Cost
Capital Cost of the Station (Rs. Lakhs) (Cash Basis)
As on
Date of
31.03.2014 Last Order
TTPS
15.05.2014
As approved by
As per Final
CERC
True up Petition
100159.35
102633.18
Capital Cost
10
10
Capital Cost
Capital Cost for tariff base for a new station All the expenditure incurred or projected to be
incurred till COD
IDC/ IEDC
Capitalized initial spares
Additional capitalisation/ de-capitalisation
Adjustment of revenue due to sale of infirm power
prior to COD
11
11
Unit Size in
MW
500
(Greenfield)
500
(Extension)
600
(Greenfield)
600
(Extension)
No of
units
1 to 4
1 to 2
4.92-4.53
1 to 4
4.87-4.01
1 to 2
4.47-4.19
Unit Size in MW
660
(Greenfield)
660
(Extension)
800
(Greenfield)
800
(Extension)
4.95-4.67
1 to 4
4.96-4.44
1 to 2
4.63-4.44
12
12
Uncontrollable Factors
Force Majeure events
Change in Law
14
Additional Capitalisation
15
1.4.2014 to 31.12.2014
31.3.2017
1.1.2015 to 31.12.2015
31.3.2018
16
16
Initial spares
Initial spares as a % of the plant and machinery cost
upto cut-off date are as follows:
4.00%
4.00%
4.00%
- 3.5%~6.00%
18
Truing up
21
21
22
22
Regulation
Item
Regulation
Reg(10)
Environment System
and Change of Law
(Rs. 6.13 Crs)
Reg(10)
R&M of Switchyard
(Rs 29.17 Crs )
Corporate Commercial Department
Reg(10)
23
23
Remarks
R&M Ph-IV
(Rs. 32.11 Crs)
Capital spares
(Rs 27.95 Crs)
MBOA items
(Rs. 3.83 Crs)
No provision in Regulations.
24
24
Capacity Charge
25
Capacity Charge
Based on the Annual Fixed Cost (AFC)
Cost of Secondary Fuel Oil has been removed from AFC and made a
part of the Energy Charge
Compensatory Allowance for coal based stations upto 25 years of life
or Special Allowance in lieu of R&M beyond 25 years will not be
considered for Working Capital
Corporate Commercial Department
26
26
ROE
Old
stations
35~38%
New
Stations
28~ 30%
Gas
Stations
35~37%
Interest on Loan
5%
20%
3%
O&M Cost
40~ 45%
20~25%
27%
Interest on
Working Capital
10%
8%
23%
Depreciation
5%
20%
10~12%
27
27
ROE
10409.64
Interest on Loan
O&M Cost
Interest on Working Capital
543.14
18818.60
2594.44
Depreciation
4564.42
Compensation Allowance
Special Allowance
TOTAL
37937.03
28
28
29
30
30
as per TEC
200/210/250/300/330 MW
500/600 MW
660/800 MW
Extension Projects
31
31
32
32
33
Interest on Loan
34
34
35
35
36
36
Depreciation
Depreciable life:
Thermal
- 25 years
Gas
25 years
Hydro
- 35 years
37
37
O&M Expenses
Norm for O&M expenses in 2014-15 is as follows:
Coal Based stations
o 200 MW 23.90 Lac/MW
o 500 MW 16.00 Lac/MW
o 660 MW 14.40 Lac/MW
o TTPS
43.16 Lac/MW
o Tanda
35.88 Lac/MW
o BTPS (unit 1to3)- 35.88 Lac/MW
Gas Based stations: Rs 14.67 Lac/MW
Advanced F class machines Rs 26.55 Lac/ MW
38
38
O&M Expenses
.. contd.
39
39
Compensatory Allowance
0 10
11 - 15
16 20
21 - 25
Nil
0.20
0.50
1.0
40
40
41
42
42
Special Allowance
43
43
Energy Charge
44
Energy Charges
Computation of Energy charges (EC)
EC covering primary fuel cost shall be payable for total
ex-bus energy scheduled to be supplied to the
beneficiary during the calendar month, at the specified
energy charge rate.
Total Energy Charge payable in a month:
Energy Charge Rate x Scheduled Energy (ex-bus)
45
45
46
46
Energy charge rate for a gas/liquid fuel based station shall be adjusted
for open cycle operation based on certification of Member Secretary of
respective Regional Power Committee for the open cycle operation
during the month.
Corporate Commercial Department
47
47
Other provisions
The generating company shall provide to the beneficiaries
details of parameters of GCV and price of fuel i.e.
domestic coal, imported coal, e-auction coal, lignite,
natural gas, RLNG, liquid fuel etc.
The details of blending ratio of the imported coal,
proportion of e-auction coal and the weighted average
GCV of the fuels as received shall also be provided
separately, along with the bills of the respective month
48
48
Other provisions
Prior permission from beneficiaries not a pre-condition for use of
alternative source of fuel unless agreed specifically in the PPA.
The weighted average price of use of alternative source of fuel shall
not exceed 30% of base energy charges.
Prior consultation with beneficiary shall be made not later than three
days in advance in case the :
the energy charge rate exceeds the lower of
30% of base energy charge rate as approved by the
Commission for that year
20% of energy charge rate for the previous month
The Commission shall approve the base energy charge rate at the
start of the tariff period. The same for subsequent years shall be
computed by escalating at the escalation rates for payment
purposes, notified by the Commission under competitive bidding
guidelines.
Corporate Commercial Department
49
49
Operating Norms
50
Operating Norms
Target Availability (NAPAF) for recovery of fixed
charges 83% (earlier 85%)
The above provision shall be reviewed based on actual
feedback after 3 years from 01.04.2014.
Incentive will be based on PLF (earlier incentive was
linked to Availability)
Normative Annual Plant Load Factor for incentive
85%
Rate of incentive 50 paise/ kwhr beyond Schedule
Generation of 85%
In 2009-14- incentive was @ FC/kWhr for old stations
(>10 yrs old) and @ 50% of FC/kWhr for new stations.
51
2009-14
2014-19
Difference
200/210/250 MW Sets
2500
2450
-50
500 MW Sets
2425
2375
-50
BTPS
2825
2750
-75
TTPS
2950
2850
-100
Tanda
2825
2750
-75
52
HR values in Kcal/kWhr
Open Cycle
Combined Cycle
2009-14 2014-19 Difference
Anta
2075
2075
No Change 3010
3010
No Change
Auraiya
2100
2100
No Change 3045
3045
No Change
Dadri Gas
2075
2000
(-75)
3010
3010
No Change
Faridabad
2000
1975
(-25)
2900
2900
No Change
Kawas
2075
2050
(-25)
3010
3010
No Change
Gandhar
2040
2040
No Change 2960
2960
No Change
Kayamkulam 2000
2000
No Change 2900
2900
No Change
53
150
170
170
247
SHT/RHT (0C)
535/535
537/537
537/565
565/593
Type of BFP
Electrical
Turbine
Turbine
Turbine
1955
1950
1935
1850
0.86
0.86
0.86
0.86
0.89
0.89
0.89
0.89
2273
2267
2250
2151
2197
2191
2174
2078
Min.Boiler Efficiency
54
54
2014-19
Difference
8.5%
No Change
No Change
Gas Stations
3.0%/ 1.0%
2.5%/ 1.0%
-0.5% for
Combined cycle
TTPS
10.5%
10.5%
No Change
Tanda
12.0%
12.0%
No Change
BTPS
9.5%
8.5%
-1.0%
For Air Cooled Condenser system additional APC of 0.5%/1.0% has been
allowed for direct/ indirect cooling respectively
1.0 ml/Kwhr
2014-19
Difference
0.5 ml/Kwhr
-0.5 ml/kWhr
56
Truing up
Controllable Parameters:
Uncontrollable Parameters
Force Majeure
Change in Law
Primary Fuel Cost
57
Truing up
The financial gains on account of controllable
parameters shall be shared.
Sharing will be done in the ratio of 60:40 between
generating stations and beneficiaries. (sharing on
refinancing of loan will be done in 2:1 ratio)
Sharing on monthly basis with annual reconciliation
Net Gain= (ECRN ECRA) x Scheduled Generation
59
Truing up on
Operational Parameters
61
Other provisions
62
FERV
63
63
64
66
Operational aspects
Target Availability for recovery of FC- 83%.
Strategies for allocation of coal:
In case of multi stage stations need to be devised.
After meeting the 83% DC level, more coal may be diverted to
efficient units (less ECR)
Operational aspects
Reporting of as received GCV of coal
Reporting of Heat Rate/ APC/ Specific Oil to be shared
in the ratio of 60:40
O&M Cost - Capital spares and water charges spent on
Operational aspects
Additional capitalization provisions: proper documentation and
justifications for claiming any additional capitalization under
allowed provisions.
Reasons for deviation from projected capitalization also needs to
be maintained.
Projected Capitalization has to be realistic. In the 2009-14 Tariff
period, actual Capitalization was substantially less than projected
and consequently NTPC had to refund tariff along with interest @
12~14% p.a.
Additional Capitalization to be shown in the year when
Capitalization would take place & the asset shall be ready for
use.
Expenditure incurred from Special Allowance and Compensation
Allowance needs to be maintained properly so that the same can
be furnished as and when asked by the Commission.
69
74
THANK YOU
75
Station
Sep
'13
Oct
'13
Nov
'13
Dec
'13
Aug
'14
TTPS
109
104
102
76
Operating Parameters
Description Norm 2009-10 2010-11 2011-12 2012-13 2013-14
Heat Rate
2850
(kcal/kwh)
2859
2851
2842
2823
2810
APC
(%)
10.50
10.47
10.56
10.64
10.50
10.52
SOC
(ml/kwh)
0.5
0.63
0.52
0.44
0.38
0.40
DC
(%)
83
90.27
93.58
91.88
95.72
94.56
77
Station
Kahalgaon
Simhadri
Farakka
Sipat
Rihand
Mouda
Dadri
Vindhyachal
Badarpur
Tanda
Ramagundam
Talcher
Unchahar
Singrauli
Korba
Talcher TPS
NTPC COAL
June
Apr '14 May '14
'14
MW
2340
2000
2100
2980
3000
1000
1820
4260
705
440
2600
3000
1050
2000
2600
460
July
'14
Aug Sept
'14
'14
2014-15
(Till
Sep'14)
2013-14
(Till
Sep13)
MU
226.85
112.42
125.76
81.78
38.48
233.08
77
126.17
23.68
0.76
63.11
17
5.39
1.31
1.27
0
232.27
188.76
99.69
100.46
75.08
14.95
94.96
183.61
28.88
5.33
141.3
41.02
26.8
0.91
55.39
0
991.71
616.33
526.19
424.63
244.12
832.89
364.94
918.01
232.56
12
313.42
133.83
140.23
98.14
70.37
0
5919.37
1789.03
1302.77
928.17
889.08
782.91
711.37
590.06
565.53
514.91
413.06
396.18
311.16
217.2
214.09
81.83
0
9707.35
78
Force Majeure
Force Majeure for the purpose of these regulations means the event or
circumstance or combination of events or circumstances including those
stated below which partly or fully prevents the generating company or
transmission licensee to complete the project within the time specified in the
Investment Approval, and only if such events or circumstances are not within
the control the generating company or transmission licensee and could not
have been avoided, had the generating company or transmission licensee
taken reasonable care or complied with prudent utility practices:
a) Act of God including lightning, drought, fire and explosion, earthquake,
volcanic eruption, landslide, flood, cyclone, typhoon, tornado, geological
surprises, or exceptionally adverse weather conditions which are in excess
of the statistical measures for the last hundred years; or
(b) Any act of war, invasion, armed conflict or act of foreign enemy, blockade,
embargo, revolution, riot, insurrection, terrorist or military action; or
(c) Industry wide strikes and labour disturbances having a nationwide impact
79
in India;
Change In Law
Change In Law means occurrence of any of the following events:
(a) enactment, bringing into effect or promulgation of any new Indian law; or
(b) adoption, amendment, modification, repeal or re-enactment of any existing
Indian law; or
(c) change in interpretation or application of any Indian law by a competent
court, Tribunal or Indian Governmental Instrumentality which is the final
authority under law for such interpretation or application; or
(d) change by any competent statutory authority in any condition or covenant
of any consent or clearances or approval or licence available or obtained for the
project; or