Issue 04 Volume 01 April, 2019

REGULATORY
INSIGHTS
In Focus Editorial
Central Electricity Regulatory Regulated tariff for inter-state generating stations as well as transmission
Commission (Cross Border Trade of licensees has evolved since CERC issued the first Terms and Conditions of
Electricity) Regulations, 2019............. 2 Tariff in 2001. The discussion paper floated on the subject of terms and
conditions of tariff for the period beginning in 2019 proposed a number of

Regulatory
changes in the regulatory framework. Centre for Energy Regulation also gave
its detailed inputs on these proposals in the paper. The recently issued Terms
and Conditions of Tariff Regulations for the tariff period 2019-2024 have
Outlook retained some of those proposals in principle, particularly those reflecting on
the broader regulatory framework for computation of capacity charges for
Central Electricity Regulatory thermal generating stations. Some of the inputs provided by CER have been
Commission (Terms and Conditions of considered while issuing these regulations. However, capacity charges
Tariff) Regulations, 2019..................... 4 differentiated across seasons and across peak/off-peak periods of the day may
need to be reconsidered based on new inputs given by CER in this issue of the
newsletter. Another important aspect highlighted through CER's comments
ERC Tracker includes the additional rate of RoE linked to the ramp rate of coal-based
power stations which, being disproportionate, would impose an additional
Regulatory Updates........................... 6 financial burden on the final consumers as capital cost recovery has already
been put in place for the technical characteristics of these plants.
Tariff Orders...................................... 10
The need for the development of a South Asian regional market for electricity
Regulations........................................ 10 and the desired policy and regulatory framework for the same has been
proposed and highlighted through a number of previous works undertaken by
Other Notifications (available online) researchers at CER, IIT Kanpur. CERC's new set of regulations aims to
facilitate cross-border trade of electricity and provide some regulatory clarity
CER News for taking it further, beyond the government designated entities, by
encouraging participation of generating plants and buying entities in the
region. This edition of Regulatory Insights highlights a number of issues that
12th Capacity Building Programme
need to be addressed in order to further enhance the regulatory certainty, like
(CBP) for Officers of Electricity close coordination between the system operator and the concerned utilities of
Regulatory Commissions...................12 the participating countries to ensure that there is a coordinated framework for
granting open access for cross-border interconnections for instance.
1st Global Regulatory Perspectives
Programme for Commissioners of The importance of specifying a separate tariff category for EV charging was
Electricity Regulatory highlighted in the previous issues of Regulatory Insights. UPERC has
Commissions......................................12 implemented the same through its recent order. This would assist the utilities
to identify and manage the development of this new load growth with gradual
roll-out of electric mobility in the state.

Anoop Singh
cer.iitk.ac.in/newsletter Coordinator, Centre for Energy Regulation

The Centre is hosted in Department of Industrial and Management Engineering, IIT Kanpur and
is seed funded by Government of United Kingdom through a project titled ‘Supporting Structural
Reforms in the Indian Power Sector’ under Power Sector Reforms (PSR) programme.

Centre for Energy Regulation (CER), Department of Industrial and Management Engineering,
Indian Institute of Technology Kanpur, Kanpur – 208016 (India) © 2019 IIT Kanpur
 In Focus
Key Features of Central Electricity Regulatory Commission
(Cross Border Trade of Electricity) Regulations, 2019

Institutional Framework (Role of Institutions)

Transmission National Load Central

Designated Settlement Nodal
Planning Dispatch Centre Transmission
Authority Agency (SNA)
Agency (TPA) (NLDC) Utility

 Establishing  Planning of  Setting charges  System  Granting long-

the process of transmission related to grid Operator for term and
approval and system and operations; CBTE medium-term
procedure for coordinating transaction and open access for
CBTE with the TPA charges related  Responsible CBTE, and
of the to transactions for granting collecting and
 Coordinating concerned and deviation short-term disbursing
with the neighbouring open access transmission
authority country  Participant in (STOA), and charges as per
designated by pools for collecting and Sharing
the concerned  Designated deviation and disbursing Regulations
neighbouring Authority to reactive energy transmission
country act as TPA for for settlement charges for
India of charges in STOA, as per
the pool Sharing
accounts Regulations

Trade Agreements System Operation

 Bilateral agreements between two countries  System Operator in India and the concerned
 Agreements through bidding neighbouring country would assess in advance the
 Mutual agreements between Indian entity(ies) and Total Transfer Capability (TTC), the Transmission
entity(ies) of the neighbouring country(ies) Reliability Margins (TRM) and the Available
Transfer Capability (ATC) for CBTE.
Transmission Planning and Connectivity  The lower of the two values of ATC assessed by the
two countries will be considered for allowing CBTE.
 Cross Border Transmission Link would be planned
jointly by TPAs of India and the concerned country,
after approval from the respective governments. Tariff Determination
 Dedicated transmission system may be developed by  Competitive bidding
the participating entity.  Mutual agreement between the buying entity (Indian)
 Cross Border Transmission Link would not be and the selling entity of the neighbouring country
considered as a part of the basic ISTS network for the  Government-to-Government negotiation under Inter
determination of PoC charges. Government Agreements (IGA)

Note: Some of the relevant publications analysing the overall regulatory and policy framework for cross-border trade of electricity,
and specific issues and solutions thereof, can be accessed through CER's portal.

2
 In Focus
Metering, Energy Accounting and Settlement, and Dispute Settlement and Resolution
Curtailment Mechanism
 Interface meters (main meter, check meter and standby  Disputes within the Indian territory would be
meter) would be installed at both the ends of the Cross settled as per the provisions of Electricity Act,
Border Transmission Link, in accordance with CEA 2003.
Regulations.  Disputes involving entities of separate
 Energy Accounting for import/export would be carried out countries would be resolved at the Government
by the concerned Regional Power Committee(s) in India. level or through International Arbitration
Participating entities would provide weekly meter readings Centre.
of actual injection or drawl for the previous week to the
concerned RLDC(s) or NLDC, through SNA, by Tuesday Transmission Charges and Losses
noon.  PoC injection/withdrawal charges for delivery
 Settlement Nodal Agency would pay or receive charges on of electricity at the pooling station within India
account of deviation as per the provisions of DSM would be regulated as per provisions of Sharing
Regulations in India and pay Reactive Energy Charges in Regulations
accordance with the Grid Code.  Charges for injection PoC losses and
 In order to maintain grid security, curtailment of power withdrawal PoC losses, as applicable, would be
would be carried out as per the Grid Code and other relevant applied at the interface.
regulations.
 In case of curtailment of the approved schedule by NLDC,
Cyber Security
transmission charges would be payable on a pro-rata basis
in accordance with the curtailed schedule.  All participating entities would have a cyber-
security framework in place.

CER Opinion

❖ Coordination between system operator and transmission utilities of the interconnected countries, specifically for the
grant of short-term, medium-term and long-term open access, needs to be ensured so that two nodal agencies do not
end up giving uncoordinated open access for the same interconnection up to the pooling stations of the respective
countries.
❖ Provisions for determination of tariff for import of electricity in the case of hydro projects located in neighbouring
countries need to be clarified in the context of small projects, multiple projects, and less than 100% allocation of a
single or multiple hydro projects. The role(s) of intermediaries (like traders) may also be specified.
❖ Scope and modalities of dispute resolution, including arbitration, may be pre-specified to avoid conflicts thereafter.
For example, in case a legal recourse has been resorted to by any of the affected parties of their respective country,
either or both of them getting a favourable outcome may complicate the dispute resolution process unless modalities
of arbitration are able to address this beforehand.
❖ It is not clear as to which International Arbitration Centre (IAC) is referred to in the regulations, as such IACs are
located within India as well as in other locations like Singapore, Hong Kong, London, etc.
❖ In the case of CBTE, taxes, duties, etc. may be applicable both within the exporting as well as the importing entity.
However, Section 30(3) refers to those applicable within India only.
❖ The regulations are designed from the Indian perspective – for both import and export of electricity. However,
regulatory provision for ‘transit’ of electricity needs to be detailed out as well.

3
 Regulatory Outlook
Central Electricity Regulatory Commission
(Terms and Conditions of Tariff) Regulations, 2019
CER Opinion
CERC issued the draft CERC (Terms and Conditions of Tariff) Regulations 2019 in Jan., 2019, and the final regulations on
7th March, 2019. Whereas several changes proposed in the draft were retained, certain others were either done away with or
modified before inclusion in the final document. CER's analysis and opinions on some of the salient features of the
regulations are highlighted below:

Computation of Capacity Charge for Thermal Generating Stations

 Clause 42(2) of the regulations introduces the concept of Time of Day (ToD) as well as season-based recovery of
Annual Fixed Charges (AFC). The recovery of monthly AFC (subject to maintaining the PAF equal to or more than
the NAPAF) would be as per the following matrix:

Peak period Off peak period Total

Ratio
(4 hours) (20 hours) (24 hours)
High demand season 0.2 × AFC × 0.25 × 0.8 × AFC × 0.25 ×
(3 months) (PAFMp/NAPAF) (PAFMop/NAPAF) AFC × 0.25

Low demand season 0.2 × AFC × 0.75 × 0.8 × AFC × 0.75 × 3:9
(9 months) (PAFMp/NAPAF) (PAFMop/NAPAF) AFC × 0.75 = 1:3
Total 0.2 × AFC × 0.8 × AFC ×
(10 months) (PAFMp/NAPAF) (PAFMop/NAPAF) AFC

Ratio 4/24 ~ 0.17 20/24 ~ 0.83

 In an absence of high NAPAF for high demand season (as compared to low demand season), the purpose of
distribution of AFC recovery on account of changes in the identified high and low demand seasons and peak and off-
peak periods would be defeated as the apportionment of AFC across high and low demand seasons in the ratio
0.25:0.75 (1:3) is equivalent to that of the number of months across the seasons (3:9 = 1:3).
 The allocation of AFC across peak and off-peak periods (0.2:0.8) is inversely proportional to the proportion of the
number of hours in the two periods (0.17:0.83), thus giving perverse incentive for sacrificing availability during the
peak period vis-à-vis that of the off-peak period. This may ultimately raise the overall cost of procurement for the
DISCOMs.
 Due to diversity in peak period and high demand season across the sates, this mechanism of AFC recovery would
have distributional impact wherein some states may gain while the other may lose in terms of AFC payment.
 Incentive in energy charges for scheduled generation beyond the normative quarterly plant load factor (NQPLF) is
undesirable as it would encourage over-injection that may cause frequency deviation – a scenario pre-dating ABT
regime. Furthermore, the absence of under-injection penalty ensures that generators are only incentivised for over-
injection and do not lose due to under-injection subsequent to the instruction of sign reversal.

Computation and Payment of Capacity Charge and Energy Charge for Hydro Generating Stations
 Generation in excess of design energy (excluding auxiliary consumption and free energy to home state) billed at the
rate of `1.12/kWh would lead to over-recovery of cost because the AFC is recovered fully otherwise. more over, this
is disproportionately high compared to incentive for over-injection (though undesirable) for thermal stations, which
actually increases fuel cost.
 The heat rate of thermal generating stations achieving CoD on or after 1st April, 2019 should not be more than the
design heat rate. Increase in multiplying factor (to calculate Gross Station Heat Rate) from 1.045 to 1.05 is avoidable
as it does not give any incentive for enforcing contractual commitment with the equipment supplier.

4
 Regulatory Outlook
Interest on Working Capital Computation of Capital Cost
 The term ‘advanced payment’ with reference to cost of coal  Prudence check based on historical data
towards stock seems ambiguous. The existing regulations in instead of benchmark norms leads to
such regards result in an inventory cost of 10 or 20 days and its subjectivity and is likely to result in carry
additional carrying cost for 30 days (in terms of advance forward of historical inefficiencies, hence
payment) to be considered for working capital. providing no incentive for further
 Maintenance spares at a rate of 30% of O&M expenses seems improvement. (Section 61 (e) of Electricity
high and should be the lower of the actual annual average spares Act, 2003: The Appropriate Commission
inventory and 30% of O&M expenses. would be guided by principles rewarding
 Receivables for sale of electricity should be calculated based on efficiency in performance while specifying
actual average plant availability in the previous year rather than the terms and conditions for the
NAPAF. determination of tariff.)

Return on Equity Others

 As per the provision for ramp rate-based penalty and incentive on RoE (w.e.f.  The term ‘Designated ISTS
1st April, 2020), the rate of RoE would be reduced by 0.25% if ramp rate is less Customers’, despite having
than 1% per minute and increased by 0.25% (subject to ceiling of 1%) if it is been replaced with ‘long term
more than 1% per minute. However, the basis for increase in RoE from 0.25% customers’, has been retained
(25 bp) to 1% (100 bp) is not specified. in the definition of
 The basis for percentage requirement of ramp rate, though obvious (generally, ‘Transmission Service
the name plate rating), should be clearly specified. The penalty should be Agreement’.
proportionate to the degree of failure and its economic impact on power  Land acquisition delays
system operation. attributable to the generating
 Any change in RoE (a percentage itself) should be expressed in terms of ‘basis company or the transmission
points’ rather than a percentage (of a percentage value). Thus, it would be more licensee should also be
sensible to use ‘25 basis points’ (100 bp) instead of ‘0.25%’ (1%). included in the list of
 If the ramp rates are already a part of the designed technical parameters of the controllable factors.
plant and capital cost has already been approved accordingly and is being paid  Clarification regarding
for by the beneficiaries, a case for further incentives is not justified. The income from RRAS is
proposed incentive scheme is akin to an air/rail transportation service provider required – whether it would
asking for additional payment for timely arrival at their respective destination be considered as non-tariff
on a fully paid ticket. income.

Sharing of Benefits

 Sharing of saving in interest due to re-financing or restructuring of loan: Sharing of net savings on interest between
beneficiaries and the generating company or the transmission licensee due to re-financing of loan (after having
accounted for costs associated with such re-financing or restructuring) may be retained in the ratio 2:1 as per the
earlier regulations for the period 2014-19, for it seems reasonable to pass on a higher share of such benefits to the
consumers. In the case of efficiency improvement due to technological interventions, which requires additional
capital investment and major efforts in terms of redesigning and re-fabrication, it is pertinent to share the benefits of
such interventions in the ratio of 1:1 as provided in the impugned regulations.

Norms of Operation Depreciation

 Higher normative availability during peak hours and high  Salvage value for IT equipment as
demand season would be more desirable than a constant level of mentioned in regulation 33 and Appendix I
85% throughout the year as provided by the regulations. (Depreciation Schedule) do not match.

05
5
 ERC Tracker
Regulatory Updates
Tariff Owing to additional capital cost for
NSTPD, TSERC revised fixed charges
For the part of the tariff period 2014-19
of the generation tariff of Nagarjuna
starting from 5th Feb., 2015, APERC
Sagar HES Complex as:
approved `10761.40 crore as capital
cost and `6936.01 crore as fixed cost for FY Tariff ( /kWh)
APPDCL. 2017-18 (Feb. and Mar., 2018) 1.33 (earlier 1.28)
2018-19 1.49
Northern Railways was directed by UERC approved FAC for the fourth
DERC to pay Wheeling Charges on the quarter of FY 2018-19, in the range of
approved maximum OA quantum, `0.07/kWh to `0.18/kWh .
deviation beyond 20% from which
UERC also approved `127.87 crores
would be charged at 1.25 times the
against PTCUL's petitioned capital
normal rate.
investment of `177.09 crores.
KERC approved Fuel Adjustment
In continuation of the tariff order for
Charge (FAC) for the first two billing
FY 2018-19 and the multi-year tariff
quarters of FY 2019-20 as:
order for FY 2017-18 to 2019-20,
ESCOM FAC ( /kWh) UPERC issued a corrigendum notifying
BESCOM 0.18 the Apportionment of Approved Power
MESCOM 0.05 Purchase for FY 2018-19 for state DISCOMs and NPCL,
CESC 0.07 and revisions in the tables involving Cost of Service.
HESCOM 0.10
GESCOM 0.09 UPERC approved EV charging tariff (separate category)
for the state as:
MERC reviewed its mid-term review
Demand Charge Energy Charge
order for TPCL-G as: Category
(`/kWh) (`/kWh)
 Additional Capitalisation: `14.76 Multi-storeyed buildings 6.20 (LMV-1b)
(separate connection) Nil 5.90 (HV-1b)
crore (FY 2015-16), `25.81 crore (FY
Public charging stations Nil 7.70 (LT), 7.30 (HT)
2016-17)
Domestic and Others
 Interest on Working Capital: increased by `0.16 crore (EV load < CL)
As per existing rate schedule
(FY 2015-16) and `0.08 crore (FY 2016-17) The ToD structure for PCS would be as:
 Efficiency Loss for FY 2015-16 (due to Unit 6 Percentage of Energy Charges
Auxiliary Consumption, to be borne by TPC-G): Hours
Summer (Apr.-Sept.) Winter (Oct.-Mar.)
reduced by `0.37 crore 0500-1100 -15 0
 Additional Surplus (Unit 6, FY 2015-16): `3.50 crore 1100-1700 0 0
1700-2300 15 15
Upon MSEDL's prayer, MERC revised the ceiling rate 2300-0500 0 -15
for compensation (for providing electricity connections
to agriculture and residential consumers of notified UPERC approved tariff for supply of 187 MW from DIL
wadis/vastis) to twice the service connection charges on to NPCL as:
the compensation amount payable, the new ceiling being Component Charge (`/kWh)
valid for compensation of pending cases as well. Transmission (PGCIL) losses and charges As per actuals
Levelised fixed charge 1.87
TNERC directed TANGEDCO to pay Levelised energy charge 2.21
interest on Security Deposit from the
consumers at 6.65% for FY 2018-19. WBERC approved the investment plan
TANGEDCO was also directed to pay for 4 transmission schemes of
interest on Advance Current WBSETCL, with total project cost of
Consumption Charges at 3.50% p.a. for FY 2019-20. `422.65 crore.

6
 ERC Tracker
Regulatory Updates
JERC (Manipur and Mizoram) In response to AEML-D's petition for procuring short-
approved levelised feed-in-tariff for term power, MERC increased the ceiling rate for the
solar rooftop projects set up or same to `5/kWh (earlier `3.50/kWh) for FY 2018-19
commissioned in FY 2019-20 as: and FY 2019-20, approving their short-term power
procurement with cost recoverable through Fuel
Category Unit 1-10 kW 10-100 kW 100-500 kW
Adjustment Cost Mechanism.
Without
subsidy `/kWh 7.89 7.33 7.10
Residential, Institutional and Social sectors TPCL-D's short-term power procurement through
70% competitive bidding at DEEP portal, with tariff of `4.78-
`/kWh 3.16 2.99 2.92
subsidy 5.54/kWh for May, 2019, was approved by MERC.
Governmental Institutions (based on achievement)
60% The existing PPA between TPC-G and BEST was also
incentive `/kWh 3.84 3.61 3.52
granted extension by MERC, for 5 years. Additionally,
36% BEST was allowed to sign a PPA for 100 MW with
incentive `/kWh 5.46 5.10 4.95
M/S Manikaran Power Ltd. at `3.94/kWh, for FY 2019-
24%
incentive `/kWh 6.27 5.84 5.67 20 to 2023-24.

WBSEDCL's PPAs of 100 MW each with Jhabua Power

Power Procurement Limited and Jaiprakash Power Ventures Limited,
through PTC India Limited, was granted approval for
MoP issued the Bidding Documents of medium-term 3 years, at a tariff of `4.24/kWh at ex-bus (no escalation)
(for 3 years) procurement of 2500 MW for Pilot with a trading margin of `0.05/kWh.
Scheme II through PFC Consulting Limited as the Nodal
Agency. The scheme aims at tapping the capacities of WBERC approved the PPA of 126 MW between
existing power plants which are not tied in PPAs. WBSEDCL and TPTCL (through TPTCL from DHPC)
with tariff at delivery point as `3.395/kWh (from the date
To incorporate the provisions of SHAKTI Policy into of supply, gradually escalating to `3.821/kWh in March,
medium-term power procurement, MoP revised the 2022).
Model Bidding Documents for medium-term power
procurement and long-term power procurement.
Other
BERC approved purchase of 200 MW CERC directed POSOCO to implement
of round-the-clock (RTC) power by Security Constrained Economic
BSPHCL at the rate of `4.195/kWh, Dispatch (SCED) for ISGS (regional
through DEEP portal, subject to entities, whose tariff is determined by
approval by CERC. CERC) on a trial basis for six months
starting from 1st April, 2019.
CSERC accorded approval to
CSPDDCL's short-term power Owing to new set of compensation guidelines for the
procurement, with tariff of `4.74- reorganised Rangareddy and Sangareddy districts of
5.25/kWh for 23rd Jan.-Feb., 2019 and Telangana, and introduction of GST, CERC approved
`3.99-7.34/kWh for Mar.- May, 2019. compensation of expenditure incurred under change in
law during construction period as an increase of 0.313%
HERC approved purchase of 400 MW of Non-Escalable Transmission Charges for every
power through DEEP portal, at a tariff of `1.24 crore additional expense.
`4.24/kWh (including fixed charge of
`0.01/kWh) at 55% scheduling, with no Slab-wise PoC rates (Jan. to Mar., 2019) for LTA/MTOA
provision for escalation. were revised by CERC, with new PoC slab rates ranging
from `61175-344744/MW/month.

7
 ERC Tracker
Regulatory Updates
CERC heeded the petition of Reliance Energy Trading Renewable Energy,
Limited surrendering their trading licence and revoked
the same on account of inactivity for three years. RPO and REC
Transfer of rights and obligations of SGPL under TSA to
Solar Energy Corporation of India
SEIL was approved by CERC.
(SECI) was designated as the
Renewable Energy Implementing
The inter-state trading licence of Manikaran Power
Agency for LTA in ISTS network.
Limited was upgraded from Category II to Category I.
CERC determined state-wise levelised generic tariff for
PPA of 700 MW between TPC-D and TPC-G was
renewable energy sources.
approved by MERC for FY 2019-20 to FY 2023-24.
BERC approved purchase of 400 MW
Under 'Go Green Initiative', MSEDCL was allowed to
of wind power on long-term basis
use SMS and provide a rebate linked to a percentage of
(25 years) through SECI, with tariff
the bill amount or Rs 10/- per bill – the higher of the two.
determined by CERC.
SBICAP Trustee Company Ltd. was assigned the
DERC exempted waste-to-energy generation plants in
distribution licence of AEML-D (License No. 1 of 2011)
NCR from Wheeling Charges, Transmission Charges,
by means of security.
Regulatory Asset Surcharge, Pension Trust Surcharge
and Cross Subsidy Surcharge on sale of electricity within
To ensure equitable supply of power during power
NCT of Delhi under Open Access Regulations, and
shortages, TNERC allowed TANGEDCO to execute
charges under UI/DSM. OA consumers drawing power
load-shedding on rotational basis across 4 rural and 6
from renewable energy sources were also exempted
urban groups.
from Wheeling Charges (even in the case of over-drawl
of electricity.
UPERC allowed SBI to transfer 75% of the equity shares
DERC approved the PPAs of BRPL, BYPL and TPDDL
and 100% of the preference shares of PPGCL to
with Tehkhand Waste to Electricity Project after
Renascent Power Ventures Pvt. Ltd. if the latter agreed to
complying with the Commission's earlier directions
reduce the PPA-discovered non-escalable capacity
regarding certain components of the PPA(s), and
charges by `0.14/kWh each year for the remaining term
directed NDMC to do the same.
of the PPA.
PSAs of BSES RPL and PTC India Ltd. with M/S Green
Infra Wind Energy Ltd. (50 MW) and M/S Inox Wind
WBERC ruled that DVC's power supply to IPCL and
Infrastructure Services Ltd. (50 MW), and between
WBSEDCL, in radial mode, does not count as sale of
SECI and TPDDL (50 MW wind power, 20 MW solar
power by a generating company to a consumer.
CER in Media
power on long-term basis, 300 MW solar power on long-
term basis, and 50 MW wind power) were also accorded
Indian Railways was denied open access (tentatively) by
approval by DERC.
WBERC in the interest of the general multitude.
GERC extended the term of wind power
WBERC approved the installation of single-phase
PPA between CLP Power India Private
export-import type meter for net metering of grid-
Limited and Torrent Power Limited
connected rooftop solar PV plants with no three-phase
(TPL), with a reduction in tariff from
system.
`3.37/kWh to `3.27/kWh.
GERC granted approval to GVUNL for the purchase of
WBERC granted approval to WBSEDCL taking over the
2.7 MW of solar power from Surendranagar Mahila and
entire business of DPL, along with associated assets and
Bal Vikas Mandal during off season period, at a tariff
liabilities, and electricity distribution in DPL's command
equal to the APPC of GUVNL for the year of project
area.
commissioning. HERC approved the PPAs for

8
 ERC Tracker
Regulatory Updates
procurement of 49.8 MW power from paddy straw Following their order on revised accounting
biomass-based power projects through RfP, by HPPC. methodology for solar feed-in consumers, TNERC
issued an order on the new scheme of rooftop Solar
HERC granted approval to HPPC for procurement of generation (including provisions on metering,
590 MW wind power from SECI's scheme, at a tariff of commercial arrangements, maximum generation,
`2.77/kWh with a trading margin of `0.07/kWh, and of connectivity, restrictions on grid penetration, etc.) for
4MW solar power, at `2.4/kWh (excluding a trading consumers under LT (except Hut and Agricultural
margin of `0.07/kWh). category), effective from 25th Mar., 2019.
HERC approved the PPA between HPPC and Tashiding
Hydro Electric Project (106.7 MW, Sikkim), Chanju-I TNERC, proposing a control period of one year (starting
(36 MW, Himachal Pradesh), and Jorethang Hydro from 1st April, 2019) and a tariff period of 25 years,
Electric Project (105.6 MW, Sikkim), at regulated tariff. approved generic tariff for solar power plants as:
`3.04/kWh without AD, and `2.80/kWh with
KSERC approved 25-year levelised tariff for 50 MW AD (AD: `0.23/kWh). TNERC also redetermined the
solar power unit at Kasaragod at `3.83/kWh, tariff for wind energy generators as:
considering accelerated depreciation (AD) benefit of Tariff (`/kWh)
Group
`0.48/kWh. Current Previous
I (projects commissioned
2.91 (without AD)
based on agreements executed 2.75
MERC directed MSEDCL to fulfil the shortfall before 15th May, 2006)
2.60 (with AD)
2147.016 MU in its cumulative solar RPO for FY 2017-
II (projects commissioned
18 by purchasing RECs or solar power by Mar., 2020. 3.05 (without AD)
based on future agreements 2.90
2.72 (with AD)
MSEDCL was granted approval for procuring after 15th May, 2006)
JSSSKL's bagasse-based cogeneration power at
`3.56/kWh for FY 2018-19 and at APPC for energy TNERC approved levelised tariff (effective from 1st Apr.,
already supplied to MSEDCL from FY 2014-15 to 2017- 2019) for power purchase from Municipal Solid Waste
18. (MSW)-based power plants as: `6.28/kWh (without AD)
MERC approved purchase of 180 MW solar power by and `5.90/kWh (with AD).
MSEDCL from various sources at tariff ranging from
`3.29/kWh to `3.30/kWh (reduced by `0.18/kWh in UERC allowed extension of benchmark capital cost and
case Safeguard Duty is not paid). generic tariff of FY 2018-19 up to June, 2020 for
upcoming solar PV power plants with cumulative
MPERC extended the control periods of the last tariff capacity up to 200 MW .
orders passed for wind electric generators, bagasse-
based cogeneration power projects, solar energy UPERC, in granting approval to IIIT Allahabad for
projects, municipal solid waste-based power generating installing 1.142 MW solar rooftop under net metering,
plants and biogas-based power projects in the state, until relaxed the ceiling of 1 MW as per UPERC RSPV/Net
further notice. Metering Regulations, 2015.

RERC determined tariff for biomass-based power plants UPERC amended the bidding documents for purchase of
for FY 2018-19 as: bagasse-based power as follows:
Variable Levelised Component Amendment
(`/kWh) AD*
Charge Fixed Charge
Requisitioned bid capacity (MW) 25 (±20%) (earlier 50)
Biomass-based 4.12 2.71 0.12
(water-cooled condensor) Term of PPA (years) 10 (earlier 20)
Biomass-based Ceiling on non-escalable charges (%) 45
4.45 2.96 0.13
(air-cooled condensor) Quoted tariff ceiling 4.81
Biogas power projects 4.34 3.50 0.17 ABT and DSM Provided for
(commissioned in FY 2018-19)
Biomass gasifier power Reduction due to use of existing
4.11 2.56 0.09 0.18
projects transmission line (`/kWh)
* to be deducted for considering accelerated depreciation (AD) benefit
Discount rate (%) 9.15 (earlier 9.08)

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 ERC Tracker
Tariff Orders
Annual Aggregate
State/Union
Performance Revenue
Territory Licensee/Utility True-up Tariff
Review Requirement
(SERC)
(APR) (ARR)
APGCL 2017-18 2018-19 2019-20 to 2021-22 2019-20
Assam AEGCL 2017-18 2018-19 2019-20 to 2021-22 2019-20
(AERC) APDCL 2017-18 2018-19 2019-20 to 2021-22 2019-20
APGCL LRPP --- 2018-19 2019-20 to 2021-22 2019-20
APSPDCL, APEPDCL --- --- --- 2019-20
Andhra --- --- ---
APTRANSCO 2019-20 to 2023-24
Pradesh
RESCOs (PP) --- --- 2019-20 2019-20
(APERC)
APSPDCL, APEPDCL 2015-16 --- --- ---
NBPDCL 2017-18 2018-19 2019-20 to 2021-22 2019-20
SBPDCL 2017-18 2018-19 2019-20 to 2021-22 2019-20
Bihar
BGCL 2017-18 2018-19 2019-20 to 2021-22 2019-20
(BERC)
SLDC 2017-18 2018-19 2019-20 to 2021-22 2019-20
BSPTCL 2017-18 2018-19 2019-20 to 2021-22 2019-20
Chhattisgarh CSPGCL, CSPTCL, --- --- --- 2019-20
(CSERC) CSLDC, CSPDCL
Haryana HVPNL 2017-18 2018-19 --- 2019-20
(HERC) HPGCL 2017-18 2018-19 --- 2019-20
TPCL 2015-16 --- 2016-21 2016-21
Jharkhand APNRL 2014-15, 2015-16 --- 2016-21 2016-21
(JSERC) 2013-14 (Q4), ---
JUUNL 2016-21 2016-21
2014-15 & 2015-16
UPCL 2017-18 --- 2019-20 to 2021-22 2019-20
PTCUL 2017-18 2018-19 2019-20 to 2021-22 2019-20 to 2021-22
UJVNL 2017-18 2018-19 2019-20 to 2021-22 2019-20 to 2021-22
Uttarakhand
SLDC --- 2018-19 ---- 2019-20 to 2021-22
(UERC)
GIPL 2017-18 2018-19 2019-20 to 2021-22 2019-20 to 2021-22
SEPL 2017-18 2018-19 2019-20 to 2021-22 2019-20 to 2021-22
GBHPPL 2017-18 2018-19 2019-20 to 2021-22 2019-20 to 2021-22
NPCL 2016-17 2017-18 2018-19 2018-19
Uttar DVVNL+PVVNL+MVVNL
2015-16 2017-18 2018-19 2018-19
Pradesh +PuVVNL+KESCO
(UPERC) 2016-17,
UPPTCL 2015-16 2018-19 ---
2017-18
Power & Electricity Dept.
Manipur and 2017-18 2018-19 --- 2019-20
(Govt. of Mizoram)
Mizoram
MSPDCL --- 2018-19 --- 2019-20
JERC (M&M) MSPCL --- 2018-19 --- 2019-20
MANIREDA --- --- --- 2029-20

Review order

Regulations
Date of
Title Approval/Notification
Tariff
Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019 7th March, 2019
Central Electricity Regulatory Commission (Sharing of inter-State Transmission Charges and
27th March, 2019
Losses) (Sixth Amendment), Regulations, 2019
Andhra Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of
16th February, 2019
Tariff for Transmission of Electricity) First Amendment Regulation, 2019
Andhra Pradesh Electricity Regulatory Commission (Security Deposit) Second Amendment
16th February, 2019
Regulation, 2019
Madhya Pradesh Electricity Regulatory Commission (Terms and Conditions for determination of
7th March, 2019
Generation Tariff) Regulations, 2015 (Revision III) Regulations, 2015 (First Amendment)

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 ERC Tracker
Madhya Pradesh Electricity Regulatory Commission (Terms and Conditions for determination of
7th March, 2019
Transmission Tariff) Regulations, 2015 (Revision III) Regulations, 2015 (First Amendment)
Punjab State Electricity Regulatory Commission (Terms and Conditions for intra -State Open
15th February, 2019
Access) (8th Amendment) Regulations, 2019
Punjab State Electricity Regulatory Commission (Terms and Conditions for determination of
7th February, 2019
Generation, Transmission, Wheeling and Retail Supply Tariff) Regulations, 2019 (Draft)
Telangana State Electricity Regulatory Commission (Terms and Conditions for Determination of
4th January, 2019
Tariff) Regulations, 2019
Uttar Pradesh Electricity Regulatory Commission (Multi Year Tariff for Distribution, Transmission
---
& SLDC) Regulations, 2020 (Draft)
Joint Electricity Regulatory Commission for Manipur & Mizoram (Multi Year Tariff) (First
27th March, 2019
Amendment) Regulations, 2019
Renewable Energy (including RPO and REC)
Gujarat Electricity Regulatory Commission (Forecasting, Scheduling, Deviation Settlement and
Related Matters of Solar and Wind G eneration Sources) Regulations, 2019 19th January, 2019
Himachal Pradesh Electricity Regulatory Commission (Promotion of Generation from the
Renewable Energy Sources and Terms and Conditions for Tariff Determination) (Second 28th January, 2019
Amendment) Regulations, 2019
Punjab State Electricity Regulatory Commission (Renewable Purchase Obligation and its
2nd January, 2019
compliance) (Amendment-2) Regulations, 2018
UPERC (Rooftop Solar PV Grid Interactive Systems Gross/Net Metering) Regulations, 2019 4th January, 2019
Deviation Settlement Mechanism
Maharashtra Electricity Regulatory Commission (Deviation Settlement Mechanism & related
1st March, 2019
matters) Regulations, 2019
Punjab State Electricity Regulatory Commission (Forecasting, Scheduling, Deviation Settlement
7th January, 2019
and Related Matters of Solar and Wind Generation Sources) Regulations, 2019
Tamil Nadu Electricity Regulatory Commission (Forecasting, Scheduling and Deviation Settlement
1st March, 2019
and related matters for Wind and Solar Generation) Regulations, 2019
Tamil Nadu Electricity Regulatory Commission (Deviation Settlement Mechanism and related
1st March, 2019
matters) Regulations, 2019
Codes
Andhra Pradesh Electricity Regulatory Commission (Electricity Supply Code) Third Amendment
16th February, 2019
Regulation, 2019
Andhra Pradesh Electricity Regulatory Commission (Interim Balancing & Settlement Code for
11 th March, 2019
Open Access Transactions) Fourth Amendment Regulation, 2019
Punjab State Electricity Regulatory Commission (Punjab State Grid Code) (1st Amendment)
7th January, 2019
Regulations, 2019
Punjab State Electricity Regulatory Commission (Electricity Supply Code and Related Matters) (5th
28th January, 2018
Amendment) Regulations, 2019
Others
Central Electricity Regulatory Commission (Cross Border Trade of Electricity) Regulations, 2019 8th March, 2019
Delhi Electricity Regulatory Commission (Power System Development Fund) Regulations, 2019 11 th January, 2019
Haryana Electricity Regulatory Commission (Guidelines for establishment of Forum for Redressal of
29th March, 2019
Grievances of the Consumers, Electricity Ombudsman and Consumer Advocacy) Regulations, 2019
Himachal Pradesh Electricity Regulatory Commission (Conduct of Business) (Ninth Amendment)
4th January, 2019
Regulations, 2019
Kerala State Electricity Regulatory Commission (Consumer Grievances Redressal Forum and
19th February, 2019
Electricity Ombudsman) Amendment Regulations, 2019
Maharashtra Electricity Regulatory Commission (Specific Conditions of Distribution Licence
applicable to Laxmipati Balaji Supply Chain Management Ltd. for FTWZ and IT/ITES SEZ at 26th February 2019
Village Sai, Taluka Panvel, Dist. Raigad) Regulations, 2019
Punjab State Electricity Regulatory Commission (Harnessing of Captive Power Generation) (1st
15th Feb, 2019
Amendment) Regulations, 2019
Uttarakhand State Electricity Regulatory Commission (Guidelines for Appointment of Members and
Procedure to be followed by the Forum for Redressal of Grievances of the Consumers) Regulations, 22nd January, 2019
2019
Note: ‘Other Notifications’ can be accessed through the online version of this issue.

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 ERC Tracker
Other Notifications
Issuing Date of
Authority Title Approval/Notification
MNRE Offshore Wind Energy Lease Rules, 2019 25th January, 2019
Modification in Scheme for “Development of Solar Parks and Ultra Mega Solar Park
MNRE 9th March, 2019
Scheme”
Scheme for farmers for installation of solar pumps and grid connected solar power
MNRE 8th March, 2019
plants
Amendments to the Guidelines for Tariff Based Competitive Bidding Process for
MoP 3rd January, 2019
Procurement of Power from Grid Connected Solar PV Power Projects
Revised Guidelines for Procurement of Electricity for Medium Term from Power
MoP 30th January, 2019
Stations set up on Finance, Own and Operate (FOO) basis
Guidelines for Procurement of aggregated Power of 2500 MW under Pilot Scheme-II
MoP for three years (covered under Medium Term) facilitated by PFC Consulting Limited 1st February, 2019
as Nodal Agency and through an Aggregator
Guidelines for long term Procurement of Electricity from Thermal Power Stations
set up on Design, Build, Finance, Own and Operate (DBFOO) basis and sourcing
MoP fuel as provided under Model Bidding Documents including allocation of coal under 6th March, 2019
B (I), B(III) and B(IV) of SHAKTI (Scheme for Harnessing and Allocating Koyala
(Coal) Transparently in India) Policy
Guidelines for short-term (i.e. for a period of more than one day to a year) Sale of
MoP Power by Power Generating Company and Distribution Licensees (the ‘Seller’) 6th March, 2019
through Tariff based bidding process (Draft)
MoP Measures to Promote Hydro Power Sector 8th March, 2019
MoP BIS Standards for Solar Photovoltaic Water Pumping Systems (Draft) 4th February, 2019
CERC Pilot on Security Constrained Economic Dispatch for ISGS pan India 31st January, 2019
Discussion Paper for finalizatio n of the Haryana Electricity Regulatory Commission
HERC 2nd February, 2019
(Conduct of Business) Regulations, 2019
Discussion Paper for finalization of the Haryana Electricity Regulatory Commission
HERC (Terms and Conditions of Service of the Electricity Ombudsman and the Officers 2nd February, 2019
and the Staff of the Office of the Electricity Ombudsman) Regulations, 2019
Discussion Paper on determination of tariff and finalisation of related issues for solar
KERC photovoltaic Plants allowed to be installed on rooftops of consumers by persons 2nd February, 2019
other than consumers under different business models
Discussion Paper on Determination of tariff for waste to energy plants in the State of
KERC 19th February, 2019
Karnataka
TNERC Procedure for verification of Captive Generating Plant (CGP) status (Draft) ---
TNERC Consultative Paper for issue of Tariff order for Solar power and related issues 1st March, 2019
Consultative Paper on Fixation of Norms for Determination of Tariff for
TNERC Procurement of Power from Municipal Solid Waste (MSW) Based Power 1st March, 2019
Generating Plants

Note: This page is available exclusively in the online version of this issue.

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 CER News
12th Capacity Building Programme (CBP) for
Officers of Electricity Regulatory Commissions
CER, on behalf of Forum of Regulators (FOR), organised the 12th
Capacity Building Programme for Officers of Electricity
Regulatory Commissions on ‘Tariff Setting in the Power Sector –
Best Practices and Emerging Regulatory Scenario’ from 11th to 13th
Feb., 2019 at IIT Kanpur. Thirteen officers from nine State
Electricity Regulatory Commissions participated in this event.
Resource persons included experts affiliated to CERC, TSERC,
Deloitte Touche Tohmatsu India LLP, Tata Power – DDL, ABPS
Infrastructure Advisory Pvt. Ltd., SECI and IITK. The programme
had sessions on a variety of topics pertaining to tariff setting, covering areas like regulatory economics, PoC framework,
MYT regime, estimating demand and planning for power procurement, standards of performance, comparison of
distribution tariff across states, and competitive bidding for renewable energy. The programme included a hands-on
session on generation tariff calculation.

1st Global Regulatory Perspectives Programme for

Commissioners of Electricity Regulatory Commissions
CER, in collaboration with FOR, conducted its first Global
Regulatory Perspectives Programme for Commissioners of
Electricity Regulatory Commissions at Melbourne, Australia, from
13th to 15th March, 2019. The programme was attended by the
Chairmen and the Members of sixteen SERCs. The sessions
provided insights on the Australian electricity sector – network
operation, consumer empowerment and involvement, overall
regulatory framework and integration of distributed energy
resources. The participants visited the office of Australian Energy
Market Operator (AEMO) where they had a live view of their Gas Control Room in operation. The programme also
included site visits to Ballarat Energy Storage Facility and AusNet Distribution Monitoring Centre, where various aspects
of battery storage and distribution network operation, especially those dealing with contingency and disruptions, were
discussed.

We invite readers to register with CER's Regulatory Skill Mapping (RSM) initiative (cer.iitk.ac.in/RSM). This would help
us design CER's activities and deliver a more relevant output by engaging with stakeholders. We also request your inputs
on the newsletter as well as on the activities of the Centre.
Regulatory Insights Team

Disclaimer: The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we
endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to
be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. This
material has been funded by the Government of UK. However, the views expressed herein do not necessarily reflect the UK Government's official policies.

Other Initiatives Contact us:

Email: cer@iitk.ac.in
Phone: +91 512 259 6181
Website: cer.iitk.ac.in
eal.iitk.ac.in ems.iitk.ac.in

Note: Additional information, including the detailed agendas and presentations of the programmes conducted by CER,
can be accessed through the hyperlinks provided in the online version of this newsletter or at CER's website.
13