CENTRAL ELECTRICITY REGULATORY COMMSSION7th Floor, Core-3, Scope Complex, Lod Ro!d, Ne" #elh $$% %%3&U'LIC NOTICES()*ect+#r!,t Re-(l!to./ o. term/ !.d co.dto./ o, t!r,,In exercise of powers conferred under Electricity Act, 2003 (the Act), theCommission has made draft regulations on the terms and conditions of tariff2 !otice is here"y gi#en under su"$section (3) of %ection &'( of the Act read with%ection 23of the )eneral Clauses Act,&(*',thatthe suggestions+comments on thedraft regulations may "e sent to the undersigned latest "y 23&200, 3 -he suggestions+comments recei#ed after that in the Commission.s office shallnot "e considered while finalising these regulations %d+$ 0A121 SAC3AN4 SECRETARY &&200,&Ce.tr!l Electrct5 Re-(l!tor5 Comm//o.Core 3, 6th Floor, Scope Complex, Ne" #elh 7 $$% %%31(-ele !o 2,3/,*&&0A1 !o 2,3/00&0)!o 2$'+23(3)+2003$CE4C&st 5anuary 200,In exercise of powers conferred under %ection &'( of the Electricity Act, 2003,and all other powers ena"ling in this "ehalf, and after pre#ious pu"lication, the CentralElectricity 4egulatory Commission here"y ma6es the following regulations, namely7 $ C3A&TER $&RELIMINARY& Short ttle !.d comme.ceme.t+(&) -hese regulations may "e called theCentral Electricity 4egulatory Commission (-erms and Conditions of -ariff) 4egulations,200,(2) -hese regulations shall come into force on &,200,, and unless re#iewed earlieror extended "y the Commission, shall remain in force for a period of 3 years(3) 8ordsandexpressionsusedintheseregulationsandnot definedherein"utdefined in the Act, shall ha#e the meaning assigned to them under the Act22 Scope !.d exte.t o, !pplc!to.+ (&) -hese regulations shall apply wherethe capital cost$"ased tariff is determined "y the Commission (2) 8here tariff has "een determined through the process of "idding in accordancewiththeguidelinesissued"ytheCentral )o#ernment, theCommissionshall adoptsuch tariff in accordance with the pro#isions of the Act3 Norm/ o, oper!to. to )e cel.- .orm/+ 0or remo#al of dou"ts, it is clarifiedthat the norms of operation specified under these regulations are the ceiling norms andthis shall not preclude the generating company or the transmission licensee, as the casemay "e, and the "eneficiaries from agreeing to impro#ed norms of operation , T!r,, determ.!to.+ (&) -he tariff in respect of a generating station underthese regulations shall "e determined unit$wise o r for the whole generatingstation and the tariff for the transmission system shall "e determined line$wise, su"$station$wise and system$wise, as the case may "e, andaggregated toregional tariff(2) 0or the purpose of tariff, the capitalcost of the pro9ect shall"e "ro6en up intostages and "y distinct units forming part of the pro9ect 8here "rea6 up of the pro9ectcost isnot a#aila"leandincaseof on$goingpro9ectsthecommonfacilitiesshall "eapportioned on the "asis of the installed capacity of the units and lines or su"$stationsInrelationtomulti$purposehydroelectricpro9ects, withirrigationaswell aspower3component, the capital cost chargea"le to power component of the pro9ect shall only "econsidered for tariff purposeExpl!.!to.0or the purpose of this chapter, the :pro9ect: includes a generating station and thetransmission system3 Applc!to.,or determ.!to.o, t!r,,+(&) -hegeneratingcompanyor thetransmission licensee, as the case may "e, may file an application for fixation of tariff inrespect of the completed units of the generating station or the lines or su"$stations of thetransmission system(2) In case of the existing generating station or the existing transmission system, thegenerating company or the transmission licensee, as the case may "e, shall ma6e anapplication for determination of tariff as per Appendix I to these regulations(3) In caseof a generating stationor thetransmissionsystemdeclaredundercommercialoperation on or after &,200,, an application for fixation of tariff shall"emade in two stages, namely7(i) A generating company or a transmission licensee may ma6e an applicationas per Appendix I to these regulations, for determination of pro#isionaltariff inad#anceof theanticipateddateof completionof pro9ect "asedonthecapitalexpenditure actually incurred up to the date of ma6ing the application or a date,prior toma6ingof theapplication, dulyauditedandcertified"ythestatutoryauditors and the pro#isional tariff shall "e charged from the date of commercialoperation of the respecti#e unit of the generating station or the line or su"$stationof the transmission system;(ii) A generatingcompanyor thetransmissionlicenseeshall ma6eafreshapplication as per Appendix I to these regulations, for determination of final tariff"ased onactual capital expenditureincurred up to thedate of commercialoperation of the generating station or the transmission system, duly certified "ythe statutory auditors "ased on annual audited accounts/ Core '(/.e// + 0or the purpose of these regulations, the core "usiness meansthe regulated acti#ities of generation or transmission of electricity and does not includeany other"usiness or acti#ities of the generating company or the transmission licenseeli6e consultancy,telecommunication,etc ' T!x o. I.come+ (&) -ax on the income streams of the generating company orthetransmissionlicensee, asthecasemay"e, fromitscore"usinessshall "ecomputed as an expense and shall "e reco#ered from the "eneficiaries(2) Any under$reco#eries or o#er$reco#eries of tax on income shall "e ad9usted e#eryyear onthe"asisof incometaxassessment under theIncome-axAct, &*/&ascertified "y the statutory Auditors3 "ut not "elow ,*02G> and the scheduled generation is more than *(3D of the declared capacity,the scheduled generation shall "e deemed to ha#e "een reduced to *(3D of thedeclared capacity and if the a#erage fre=uency of the time "loc6 is "elow ,*02G> and the scheduled generation is more than */3D of the declared capacity,the scheduled generation shall "e deemed to ha#e "een reduced to */3D thedeclared capacity(xxiii) >Sm!ll G!/ T(r).e &o"er St!to.?means and includes the gas$"asedand naptha$"ased thermal power stations with gas tur"ines in the capacity rangeof 30 C8 or "elow&,(xxi#) :U.t?inrelationtoathermal power generatingstationmeanssteamgenerator, tur"ine generator and their auxiliaries, orin relationto a com"inedcycle thermal generating station, meanstur"ine$generator and auxiliaries(xx#) ation period2/00 JCal+68h 2330 JCal+68h%u"se=uent period2300 JCal+68h 2,30 JCal+68h&/Note $In respect of 300 C8and a"o#e units where the "oiler feed pumps areelectricallyoperated, theheat rateof ,06Cal+68hshall "ereducedfromthegenerating station heat rate indicated a"o#eNote :0or generating stations ha#ing com"ination of 200+2&0+230 C8 set and 300 C8and a"o#e sets, normati#e gross generating station heat rate shall "e theweighted a#erage generating station heat rate(") 2ignite$fired thermal power generating stations-hegrossgeneratingstationheat ratesindicateda"o#eforcoal$"asedthermal power stationsshall "ecorrected, usingmultiplyingfactorsasgi#en "elow7(i) 0or lignite ha#ing 30D moisture7 Cultiplying factor of &&0 (ii) 0or lignite ha#ing ,0D moisture7 Cultiplying factor of &0'(iii) 0or lignite ha#ing 30D moisture7 Cultiplying factor of &0, (i#) 0or other #alues of moisture content, multiplying factor shall"e pro$rated for moisture content "etween 30$,0 and ,0$30depending upon the rated #alues of multiplying factor for therespecti#e range gi#en under Clauses (I) to (iii) a"o#e(c) )as$"ased and naptha$"ased generating stations&'(i)Existing generating stations owned "y !ational -hermal