tag:blogger.com,1999:blog-79575235479058602962026-03-31T03:10:45.131+05:30Indian Power SphereEmpowering the Indian Power Sector with News, Insights, Publications & Other resources...Anonymoushttp://www.blogger.com/profile/02062818443006094580noreply@blogger.comBlogger47125tag:blogger.com,1999:blog-7957523547905860296.post-31281576588640304152015-07-03T12:49:00.001+05:302015-07-03T12:49:40.860+05:30CERC has proposed new norms for forecasting, scheduling and imbalance handling of renewable power…<p> </p> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgscSb1z51RtVJUVJ4W_ryPl6AQnP8_4YVn9bGEtlxEqzLGOcFd1ZOirWI_RErTv6EE4vBlFzph86J4T9-DdEOJOVB6fX8uSlTND2lFMa8toccZ2huijc_2D-a9quJm3x9McU69PsK6kQ/s1600-h/image%25255B3%25255D.png"><img title="image" style="border-top: 0px; border-right: 0px; background-image: none; border-bottom: 0px; float: left; padding-top: 0px; padding-left: 0px; margin: 0px 5px 0px 0px; border-left: 0px; display: inline; padding-right: 0px" border="0" alt="image" align="left" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiyhHGSvaLukmhhyphenhyphen8wjuBalEjxAzCLcwH0es91zbwnuHw26Scpxh5H1ZRqSMoll6J3FWbOAtnfDbLllFIaJxwt2z0SuUq_VREBhJkZ-TwhfDmZ0Ob5Q-bpGs12sMzC9fdI7SrvDAqOQGA/?imgmax=800" width="236" height="244"></a></p> <p>The new regulations for scheduling solar and wind power for transmission through the grid could escalate prices.</p> <p>If the power generator deviates from its schedule and under supplies, it would be liable for a penalty. The penalty amount, which would be calculated as per unit energy shortfall, will go in a pool - Renewable Regulatory Fund (RRF). The amount from this fund would be shared among all the states buying from that power plant in the ratio of their peak demand during the previous month. States defaulting on buying renewable power as prescribed under their renewable purchase obligation (RPO), too, would have to pay a penalty.</p> <p>The Central Electricity Regulatory Commission (CERC) has proposed norms for forecasting, scheduling and imbalance handling of renewable power. It says that the power generator would be paid for the energy supplied to the grid and not the capacity tied up.</p> <p>The wind or solar power generator would have to use tools to forecast power generation from its plant and then schedule power sale accordingly in the grid.</p> <p>"Renewable Energy Management Centres (REMCs) are being established and these would be equipped with advanced forecasting tools... the buyer would be paying tariff for the energy scheduled to the wind/solar energy generators," said the draft regulations. The scheduling would be done by regional load despatch centres (RLDCs).</p> <p>The industry finds the proposal not in sync with the government's target to add 1.75 gW of renewable power by 2022.</p> <p><a href="http://www.business-standard.com/article/economy-policy/new-rules-availability-based-rate-for-renewable-power-115070300015_1.html">Source</a></p> Anonymoushttp://www.blogger.com/profile/02062818443006094580noreply@blogger.com0tag:blogger.com,1999:blog-7957523547905860296.post-77001496280612029632015-03-03T17:50:00.001+05:302015-03-03T17:50:09.828+05:30KERC approves average tariff hike of 13 paise per unit<p> </p> <p><img title="image" style="border-top: 0px; border-right: 0px; background-image: none; border-bottom: 0px; float: left; padding-top: 0px; padding-left: 0px; margin: 0px 5px 0px 0px; border-left: 0px; display: inline; padding-right: 0px" border="0" alt="image" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhua1EZXpacYQb-NEWhCIX4fcD4S39VFD8kKUhwTiv8J8lHGRZFBLTEIK-wyYwRl3OlRjuQCUk-bpMTnFq3FM50c2-u_4oiOxNdeLShz287fhWdzNmBYaVuZ2Py67k4l8fsMSdjLanIjQ/?imgmax=800" width="240" align="left" height="238"></p> <p><strong><em>The Karnataka Electricity Regulatory Commission has approved revision of electricity supply tariff for all the Electricity Supply Companies in the State for the Financial Year 2015-16, by allowing an average tariff increase of 13 paise per unit for different categories of consumers.</em></strong> <p>The revised tariff will come into effect for the electricity consumed from the first meter reading date falling on or after April 1, 2015. <p>As against an increase of 80 paise per unit sought by the ESCOMs uniformly for all categories of consumers, KERC has allowed an average tariff increase of 13 paise per unit (ranging from 10 paise to 20 paise) for different categories of consumers other than Irrigation Pump Sets and "BhagyaJyothi/KuteerJyothi" households. <p><a href="http://economictimes.indiatimes.com/industry/energy/power/kerc-approves-average-tariff-hike-of-13-paise-per-unit/articleshow/46435585.cms" target="_blank">Source</a></p> Anonymoushttp://www.blogger.com/profile/02062818443006094580noreply@blogger.com0tag:blogger.com,1999:blog-7957523547905860296.post-36320984994061585562015-02-25T21:48:00.001+05:302015-02-25T21:48:13.042+05:30UPERC issues draft regulations for solar rooftop & net metering<p> </p> <p><img title="image" style="border-top: 0px; border-right: 0px; background-image: none; border-bottom: 0px; float: left; padding-top: 0px; padding-left: 0px; margin: 0px 5px 0px 0px; border-left: 0px; display: inline; padding-right: 0px" border="0" alt="image" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgAM9P6dR8-Ohf1nJy-GLNYZtTUamH8-ZSAPAy60XcNpi2HSpjOXZlu9ZWhtgJCEG2dRkWFqXFw7IB6kAy-MorM0yzoZmhzM5iv28L-8xcL4VprP_cnnEKOEzJDgIhMoL1Bi0GcL52piA/?imgmax=800" width="240" align="left" height="185"></p> <p><strong><em>Uttar Pradesh Electricity Regulatory Commission (UPERC) has issued draft regulations for solar rooftop and net metering called as UPERC (Rooftop Solar PV Grid Interactive System Gross / Net Metering) Regulations, 2015.</em> </strong></p> <p>As per the draft regulations, the eligible consumers can install rooftop solar systems under both gross & net metering schemes.</p> <p>Further, the consumers who are availing Accelerated Depreciation (AD) Benefits for their rooftop solar projects will be eligible only for the net metering scheme.</p> <p>The maximum peak capacity of the grid connected rooftop solar system to be installed by any eligible consumer shall not exceed 90% of the contract demand of the consumer.</p> <p>Brief of the Regulations:</p> <ul> <li><font color="#000000">Minimum Capacity: 1 kWp</font></li> <li><font color="#000000">Ownership Arrangements: Both self owned & third party owned allowed.</font></li> <li><font color="#000000">Metering Arrangements: Gross & Net metering. If the consumer installs solar rooftop under the gross net metering scheme he will have to inject entire power generated into the grid, while in other case if the consumer opts for Net Metering scheme he will be entitles to use the power generated at his premises and will be allowed to inject the surplus power into the grid.</font></li> <li><font color="#000000">Charges: Wheeling & Cross Subsidy charges are exempted</font></li> <li><font color="#000000">Solar RPO: In case the consumer is not an eligibility entity then such quantum of energy consumed by the consumer will qualify towards the RPO of the distribution utility.</font></li></ul> <p>UPERC has invited comments and suggestions through a public notice, by 1st March 2015. <a href="http://www.uperc.org/App_File/RSPVPublicNotice-doc216201513723PM.doc" target="_blank">Click here to access the notification.</a></p> <p>The Draft Can be accessed <a href="http://www.uperc.org/App_File/UPERCRSVPREGULATIONS2015-rar216201513436PM.rar" target="_blank">here.</a></p> Anonymoushttp://www.blogger.com/profile/02062818443006094580noreply@blogger.com0tag:blogger.com,1999:blog-7957523547905860296.post-18426345246421056752015-02-13T23:21:00.001+05:302015-02-13T23:21:16.039+05:30Aggressive bidding in coal e-auction to hurt power sector…<p> </p> <p><img title="image" style="border-left-width: 0px; border-right-width: 0px; background-image: none; border-bottom-width: 0px; float: left; padding-top: 0px; padding-left: 0px; margin: 0px 5px 0px 0px; display: inline; padding-right: 0px; border-top-width: 0px" border="0" alt="image" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj30PkK-nEc8SYEaKG_32htU7NVYZl7322CZUdyliIj_4H1l8Tl3ypBENZlZOPbbwm6WIGsgktYsUdg1wcuBboLquNjACbyXJTibZ5ZjhBBPT29IcfOytPR1QwQmtzev3GfOdFfnZrbqw/?imgmax=800" width="204" align="left" height="204"></p> <p><strong><em>According to some of the Power Sector Bidders, the aggressive bidding by some of the bidders would lead to disaster in the tariff and capital cost of the power projects.</em></strong></p> <p>Several bidders have taken a very aggressive call discounting the mining fee by making money elsewhere such as coal sizing/handling costs, washing costs, selling of rejects/middling in open market, port charges, transportation/shipping costs etc. in their landed price of coal to their power plant.</p> <p>This will lead to a chaos in the sector and will hamper the sustainable growth of the coal sector.</p> <p>It was expected the Power Ministry will prepare new Standard Bidding Documents & Guidelines by incorporated the past experience and plugging all the loopholes to encourage the bidders to bid for serious and mature bids which will be sustainable in the future and provide overall growth in the Sector. </p> <p>However this philosophy is not evident in the present coal block auction process and the entire process is plagued with several important loopholes. </p> <p>If the present auction process continues in the same way then it will defeat the sole purpose of the sustainable and transparent growth in the sector and will lead to a complete failure of the system which will end up providing control of the majority of the mines in the hands of few mighty bidders only.</p> <p>The sector experts also pointed out that aggressive bidding will also not encourage investments in the sector. Some even suggested that the best solution today will be to handover these mines to Coal India in the interim and let the Ministry to develop a full-proof bidding guideline first so that the serious & sustainable bidding takes place leading to an overall growth of the coal sector.</p> <p><a href="http://www.business-standard.com/article/companies/aggressive-bidding-in-coal-e-auction-to-hurt-power-sector-power-market-executives-115021301835_1.html" target="_blank">Source</a></p> Anonymoushttp://www.blogger.com/profile/02062818443006094580noreply@blogger.com0tag:blogger.com,1999:blog-7957523547905860296.post-68826879164547055342014-01-26T19:43:00.001+05:302014-01-26T19:43:01.982+05:30APERC public hearing: Farmers oppose power tariff hike…<p> </p> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjzrIJeIMEahoagVHp16eZy_WB1zuMRQ1-hsPPJtX8JnP7kIuF_dt-I7FaW7eRKI-K6_Y6vnmLRry2ywjJNRuAQAR0VfFK9eK6rloH_ojNTp0WPbg_cOKalHY9XViffI-f2Tis-79TcFQ/s1600-h/image%25255B2%25255D.png"><img style="background-image: none; border-bottom: 0px; border-left: 0px; margin: 0px 5px 0px 0px; padding-left: 0px; padding-right: 0px; display: inline; float: left; border-top: 0px; border-right: 0px; padding-top: 0px" title="APERC public hearing: Farmers oppose power tariff hike…" border="0" alt="APERC public hearing: Farmers oppose power tariff hike…" align="left" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjRMIA5jo90mPmJLiTOVIzAFPb63hM65C9q_CwIxzyqW8RVQPsVGlWIiUPdpKfjrpbuZXnRNBiTl4lIl2YJ-h8cWMIUNONFTQbwWXfEF7OUNriTfd59Usw4ya5o-LFxDb1gp8So5QML5A/?imgmax=800" width="200" height="200"></a></p> <p><strong><em>Mild tension prevailed at the Andhra Pradesh Electricity Regulatory Commission’s (APERC) public hearing here on Saturday, as representatives of several farmers’ associations and political parties vociferously opposed the power tariff hike mooted by the Andhra Pradesh Southern Power Distribution Company Limited (APSPDCL).</em></strong></p> <p>The hearing began with a presentation by APSPDCL Chairman and MD H.Y. Dora, who put forward the achievements of the Southern Discom, along with proposed power tariff hike and steps to be taken for effective power distribution. But, the proceedings had to be adjourned by APERC Chairman V. Bhaskar for more than 30 minutes as the farmers’ association representatives and activities of several political parties raised slogans and refused to calm down. </p> <p>YSRC Spokesperson B. Janak Prasad said the failure of the government to ensure supply of coal and natural gas to power projects had forced the Discoms to generate power at a higher cost with imported raw materials. TDP activists also flayed the officials for being unable to curb the transmission and distribution (T&D) losses. Quoting experts’ opinion, they said that Rs.400 crore could be saved by reducing the loss by 1 per cent. Meanwhile, in a statement, CPI (M) State Secretary B.V. Raghavulu said that in last four financial years, the commission had permitted tariff hike to the tune of Rs.12, 605 crore and Fuel Surcharge Adjustment (FSA) for the last five years stood at Rs.12,800 crore. “Due to the proposed hike, the average hike is 28.2 per cent and 23.9 per cent for LT and HT categories,” the statement read.</p> <p>Members of farmers’ associations demanded that the government provide uninterrupted power at free of cost to ryots in the morning instead of at nights as the latter would serve no purpose.</p> <p><a href="http://www.thehindu.com/news/national/andhra-pradesh/aperc-public-hearing-farmers-oppose-power-tariff-hike/article5619978.ece" target="_blank">Source</a></p> Anonymoushttp://www.blogger.com/profile/02062818443006094580noreply@blogger.com0tag:blogger.com,1999:blog-7957523547905860296.post-4118998398156381902014-01-17T22:18:00.001+05:302014-01-17T22:18:30.463+05:30Power gencos seek relief on CERC’s draft multi-year tariff norms…<p> </p> <p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgjg4X_8aVShoXqnIz_TOW5ZraJaeqOGl5dBqlmh6Ej6GLnSJPq-mfcIwA0SHmOxfpDZzfnTu0NL651qHP6VeWmHK2ej5u1rVt68VgsHdJMl4bCn2ag2NAG42bExFsjJDBRSYtQT19UEA/s1600-h/image%25255B2%25255D.png"><img style="background-image: none; border-bottom: 0px; border-left: 0px; margin: 0px 5px 0px 0px; padding-left: 0px; padding-right: 0px; display: inline; float: left; border-top: 0px; border-right: 0px; padding-top: 0px" title="Power gencos seek relief on CERC’s draft multi-year tariff norms…" border="0" alt="Power gencos seek relief on CERC’s draft multi-year tariff norms…" align="left" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh5Lmvklth8pleC3CJ5Z1Ac0iWGl00xa4EJ_4MNVBm3sXTJFrh-VTmGvlkzoKe47l0OdP4lIHuxI5hqTIfzlWpVM3yG_HBi6X4E9w5_GQCg_pHcjqASxbjq07ym5IykS1BtzXdjr40Tfg/?imgmax=800" width="200" height="146"></a></p> <p><strong><em>Power generation companies (Gencos) have sought relief from the electricity regulator on many of the regulations that came out in the draft multi-year tariff (MYT) regulations 2014-2019. </em></strong></p> <p>The final draft is likely to come in a month’s time. Among those, the power gencos, like NTPC , have asked CERC (Central Electricity Regulatory Commission) to allow them plant-availability-based incentive. </p> <p>Earlier, power gencos got incentives over and above the fixed cost charges that they would get in cases when plant was available for power generation. </p> <p>However, under the new draft, CERC has removed these incentives, stating that incentives will only be given if plant is generating the power to distribution companies (discoms). Thus, the incentives have got generation-linked from being availability-linked. </p> <p>The change of the structure from availability to production puts the onus on generators, which according to experts, have to pay a price due to the inability of the distributors to buy power from them. But the distribution companies have contested this saying that power generation companies get unnecessary advantage, and are seeking for capping these incentives. </p> <p>Over and above the fixed charges, NTPC alone used to recover Rs 600 crore as incentives annually. The power gencos have also sought for easing the operating and maintenance parameters and reducing the proposed cap for station heat rate as proposed in the draft norms. Station heat rate (SHR) is fuel required to make one unit of power. </p> <p>And CERC in draft MYT had capped SHR by 2% to 2,375 kcal/kwat hour for 500 MW of power, since according to CERC this would increase their efficiency. NTPC has also sought for 18% minimum assured return on equity, an increase from what was proposed in the draft where the ROE was capped at 15.5%. One of the key highlights was a proposal in the draft to remove the tax arbitrage for power generation companies like NTPC, which earned around Rs 500 crore yearly as tax arbitrage. </p> <p>The power gencos have requested CERC to remove this regulation from the draft and continue with the earlier one. Experts say that a pre-tax ROE for companies like </p> <p>NTPC would ensure higher cash flows and a better balance sheet. Discoms, on the other hand, have presented to the central electricity regulator to use the interest income earned by companies like NTPC, which is as high as Rs 2000 crore, to set off the tariff reduction.</p> <p><a href="http://www.moneycontrol.com/news/cnbc-tv18-comments/power-gencos-seek-reliefdraft-multi-year-tariff-norms_1026803.html" target="_blank">Source</a></p> Anonymoushttp://www.blogger.com/profile/02062818443006094580noreply@blogger.com0tag:blogger.com,1999:blog-7957523547905860296.post-43586125641581401042014-01-10T17:05:00.001+05:302014-01-10T17:05:12.553+05:30West Bengal deals double whammy to RP-SG's CESC...<p> </p> <p><img style="background-image: none; border-bottom: 0px; border-left: 0px; margin: 0px 5px 5px 0px; padding-left: 0px; padding-right: 0px; display: inline; float: left; border-top: 0px; border-right: 0px; padding-top: 0px" title="West Bengal deals double whammy to RP-SG's CESC..." border="0" alt="West Bengal deals double whammy to RP-SG's CESC..." align="left" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjRaYwIHxu7YFIXz7WTnSpdX_KAEuMTMWmOHhID9NLN4LxwPaeye-kTEYCfzXfp-V0fW7H_EKuOp9h8pzTmxCcIpB6slp4c-QRs6b5ZvEx6sbSvoHSO19olZv5kiDNFtiQ0dyrnhx3-0w/?imgmax=800" width="200" height="120" /></p> <p><strong><em>Fears arise that minuscule tariff hike, unchanged key rates could strangle the power producer. The West Bengal state power regulator has dealt a double whammy to the RP-Sanjiv Goenka group’s flagship CESC which supplies power to Kolkata and some adjoining areas.</em></strong></p> <p>CESC has been allowed to raise tariff by a measly 0.15% or less than a paisa to Rs 6.10 per kilo Watt hour (kWh) for 2013-14, much less than the nearly 1% hike of last fiscal (2012-13) to Rs 6.09/kWh.</p> <p>The tiny raise would give little leeway to CESC to raise investments for upgrading some of its old infrastructure, meet rising costs of fuel and give out new connections, company officials said.</p> <p>Worse -- and this is what makes the decision a double whammy – most of the key rates have been kept unchanged. For instance, rates for consumer groups like domestic urban and commercial urban consuming more than 300 units a month have remained same at Rs 7.95 and Rs 7.99 respectively, according to the tariff rate disclosed by CESC on Thursday.</p> <p>The two consecutive marginal hikes come in sharp contrast to a comfortable 13% raise allowed for 2011-12.</p> <p>The tariff of 610.66 paisa for this fiscal has been arrived at by allowing Rs 5,710.21 crore as revenue to be recovered through tariff, minus Rs 17.02 crore expected to be received from sale of power to state power utility, and then dividing the net tariff revenue by projected sale of 9,323 million units, the regulator said in its order.</p> <p>While determining the tariff, the regulator has allowed CESC to purchase power from it at a highest rate of 536 paisa/KWh during the peak period of summer and a lowest rate of 470 paisa during the off-peak period in winter.</p> <p>CESC has been asking the regulator to allow it to get compensated due to steep increase in coal and other fuel prices and also copper, a major material for electrical plant and equipment, adversely affecting its operation costs.</p> <p>Also, there is “overwhelming requirement of large and continuous investment to protect consumers’ need of reliable power supply while large-scale developmental activities are taking place in and around Kolkata which calls for matching infrastructure in electric supply,” CESC had said in an annual performance review filing.</p> <p><a href="http://www.dnaindia.com/money/report-west-bengal-deals-double-whammy-to-rp-sg-s-cesc-1948450" target="_blank">Source</a></p> Anonymoushttp://www.blogger.com/profile/02062818443006094580noreply@blogger.com0tag:blogger.com,1999:blog-7957523547905860296.post-79018026525538493992014-01-08T14:38:00.001+05:302014-01-08T14:38:54.353+05:30Tamil Nadu power regulator may tweak rules for quick developments of solar business...<p> </p> <p><img style="background-image: none; border-bottom: 0px; border-left: 0px; margin: 0px 5px 5px 0px; padding-left: 0px; padding-right: 0px; display: inline; float: left; border-top: 0px; border-right: 0px; padding-top: 0px" title="Tamil Nadu power regulator may tweak rules for quick developments of solar business..." border="0" alt="Tamil Nadu power regulator may tweak rules for quick developments of solar business..." align="left" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWgQjB4oZOMl9Yg50h1Vu_MBaCltwHrDLHnUz5TwkO7vh1nB3dj_NcHmeRFjhtFxzwXmHdOxSGsdXA_VCBUCkOLWp7KOjdahAMCIBXqC_9NrNZiplEGrd3-j6IvK-vONkQpExfnV4ECw/?imgmax=800" width="200" height="133" /></p> <p><strong><em>The Tamil Nadu Electricity Commission is looking to change the rules in order to ensure just one member can be considered a quorum, rather than the current requirement of two, something that could potentially quicken the decision-making process.</em></strong></p> <p>The regulator has issued a draft notice toward easing the rules for what constitutes a quorum-the minimum number of members needed to transact the business of a group.</p> <p>The move comes at a time when Tamil Nadu is trying to battle its huge power shortfall through, among other things, an ambitious scale-up in solar power. The plan is to add 3 gigawatt of solar power by 2015, but the going hasn't been smooth.</p> <p>Though over 50 solar developers have signed letters of intent to set up nearly 700 megawatt of capacity, power purchase agreements haven't been signed. And the main reason for the delay is that the regulator has been functioning with just one member.</p> <p>"For the past one year, nothing has been happening in terms of decision-making, creating uncertainty," said Madhavan Nampoothiri, founder & director of Chennai-based RESolve Energy Consultants. It also comes just a week after Tamil Nadu inducted a second member to the commission. Nampoothiri said the amendment take care of the quorum in case one member retires.</p> <p>It will also ensure consistency. The change in rules could help the industry. Bikesh Ogra, president of solar Business at Sterling & Wilson, part of Shapoorji Pallonji Group, said he expects the moves to "instill confidence in the solar developers who have been waiting for almost a year to sign power purchase agreements. Expectations are that power purchase agreements could get signed shortly."</p> <p>The change in rules follows criticism by appeals body Appellate Tribunal for Electricity on vacancies that were not filled up. That came after a report of the Forum of Regulators, which is made up of representatives of all state electricity regulatory commissions, pointed out the lack of quorum in AP, Jharkhand and Tamil Nadu.</p> <p>Justice M Karpaga Vinayagam, chairperson of the appellate tribunal, had noted in his order the need to record "with a great anguish with regard to repeated instances of institutional vacuum being created due to lack of diligence by the respective appointing authorities in filling up the vacancies".</p> <p><a href="http://economictimes.indiatimes.com/news/news-by-industry/energy/power/tamil-nadu-power-regulator-may-tweak-rules-for-quick-business/articleshow/28547101.cms" target="_blank">Source</a></p> Anonymoushttp://www.blogger.com/profile/02062818443006094580noreply@blogger.com0tag:blogger.com,1999:blog-7957523547905860296.post-68471818622295046542014-01-06T13:27:00.001+05:302014-01-06T13:27:04.604+05:30CERC hearing on draft power tariff rules for 2014-19 on Jan 15...<p> </p> <p><img style="background-image: none; border-bottom: 0px; border-left: 0px; margin: 0px 5px 5px 0px; padding-left: 0px; padding-right: 0px; display: inline; float: left; border-top: 0px; border-right: 0px; padding-top: 0px" title="CERC hearing on draft power tariff rules for 2014-19 on Jan 15..." border="0" alt="CERC hearing on draft power tariff rules for 2014-19 on Jan 15..." align="left" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhVV81s5CVFgS3bOSCetj2g7PV2Qk6xMtw67viKzNlqwPmMHG3hSqdOuIO4Fl7ix5Hv3YqtKoz8C0x2umd_-6QjhNG3rP9wh9ANOCY79qneyvDhPDAF73QPMv_S4zYHGdEr5ynj_5M3Mw/?imgmax=800" width="200" height="150" /></p> <p><strong><em>Electricity regulator CERC will hold a public hearing on the draft tariff regulations it has prepared for central government-owned power generation utilities on January 15.</em></strong></p> <p>The draft regulations, released by the Central Electricity Regulatory Commission last month, had stated that generation incentives should be linked to actual power produced instead of a plant's installed capacity.</p> <p>It proposed that incentives for thermal power projects should be based on plant load factor (PLF) and not plant availability factor (PAF).</p> <p>PAF, the declared generation capacity of a plant, remains the same. PLF is the actual generation and may vary depending on demand.</p> <p>State-run power producers had said that under normal circumstances, PAF is generally higher than PLF and therefore incentives should not be linked to PLF.</p> <p>State-owned NTPC, the country's largest generator of electricity, is likely to respond to the draft regulations.</p> <p>"Public hearing on draft CERC (Terms and Conditions of Tariff) Regulations, 2014 for the tariff period from April 1, 2014 to March 31, 2019 will be on January 15," according to information on the regulator's website.</p> <p>The CERC revises tariff regulations every five years. The existing regulations expire on March 31, 2014.</p> <p>Source: Business Standard</p> Anonymoushttp://www.blogger.com/profile/02062818443006094580noreply@blogger.com0tag:blogger.com,1999:blog-7957523547905860296.post-77426128219920791272014-01-04T12:00:00.001+05:302014-01-04T12:00:06.204+05:30Solar industry enthused by Rajagopal’s appointment to regulatory panel in TNERC...<p> </p> <p><img style="background-image: none; border-bottom: 0px; border-left: 0px; margin: 0px 5px 5px 0px; padding-left: 0px; padding-right: 0px; display: inline; float: left; border-top: 0px; border-right: 0px; padding-top: 0px" title="Solar industry enthused by Rajagopal’s appointment to regulatory panel in TNERC..." border="0" alt="Solar industry enthused by Rajagopal’s appointment to regulatory panel in TNERC..." align="left" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjEGOM0zCuxgawAO30IkWStWdLApqISc4e7Y5KGhl47aiXQGZmQSohKkenv26rU2bODJST0o-BymhgdHKEP82bIroeGLm4v6qwzWF_9wt7JT6RZmLOv8NWk4bg4gUwtdft5V3hTZjJQbA/?imgmax=800" width="255" height="257" /></p> <p><strong><em>Nothing was happening for a long time in what was believed to be the ‘most happening place’ for the solar industry — Tamil Nadu. Most of the reason for the non-happening had to do with the presence of only one member in the State’s electricity regulatory commission.</em></strong></p> <p>Now, with the appointment of S. Rajagopal, the current Director-Finance of the state electricity generation and distribution utility – Tangedco – as another member of TNERC – the Chairman is yet to be appointed – the solar industry believes that there are sunny days ahead.</p> <p>Rajagopal is expected to be administered the ‘oath of secrecy’ by the state’s electricity minister early next week. The general expectation is that the Commission will buck up and take long-pending decisions, the most crucial of which is the signing of the power purchase agreements with those who have won rights to put up solar projects and sell electricity to Tangedco through a bidding process that was run a year ago.</p> <p>The PPA-signing is a big event that the entire solar industry has been anxiously awaiting — about 700 MW of solar projects worth Rs 5,000 crore could get off the mark once the PPAs are signed.</p> <p>The PPAs could not be signed because the Commission had not approved them. The Commission didn’t do that for three main reasons. First, it feels that the tariff discovered through last year’s bidding process — Rs 6.48 per kWhr with 5 per cent annual escalation for 10 years — is rather high. Tangedco’s point of view is that the tariff being market-determined, ought to be approved by the regulator. Second, some industry bodies have filed cases against the imposition of the ‘Solar purchase obligation’ on specified classes of consumers. The Commission prefers to wait until the cloud over this is cleared. Business Line learns that the Court’s judgement on this will come in the third week of this month. Third, the Commission had only one member — and, therefore, did not want to take major decisions.</p> <p>Rajagopal joining TNERC is expected to remove the first and the third of the hurdles.</p> <p>Terming his appointment as a “positive sign”, Bikesh Ogra, President of Solar Business of Sterling & Wilson (of the Shapoorji Pallonji group), notes that “the fact that the newly-appointed member comes with recent Tangedco background sends strong signals to the industry.” Ogra expects that TNERC will now be able to fast-track the PPAs.</p> <p>Others note that it is not just the PPAs, but a whole lot of other regulations relevant to the solar industry are expected to be decided upon by the Commission.</p> <p>For instance, the Commission is yet to determine charges that solar power producers should pay if they wheel their power to their customers using the State-owned grid lines, charges for defraying the State’s burden of subsidising the poor and whether or not the power producers could ‘bank’ their power and draw it back at some other date.</p> <p>Vivek Jayakumar, Executive Director of the solar consultancy, Arbutus, also feels that Rajagopal’s appointment would “accelerate the state’s solar programme.”</p> <p>How much will come?</p> <p>Amidst all this — and now being the beginning of a new year — there is a lot of lively speculation in the industry as to how much solar capacity will get added in Tamil Nadu in 2014.</p> <p>The optimists put it at around 500 MW, since many projects are ready to take off the moment the PPAs are signed. The sceptics feel that none of the projects conceived for implementation under the Tangedco bid, will come to fruition this year. They feel that such of those investors who eyed the tax-saving ‘accelerated depreciation’ benefit will be interested in the projects, given that the projects cannot be completed by March-end. Secondly — and more importantly — they feel that it is proving to be very difficult to obtain grid connection, another hurdle-ridden process.</p> <p>Tamil Nadu will be key to the solar programme of the entire country. There being an election this summer, the industry sees little chance of project awards under the Centre’s National Solar Mission, though a substantial capacity addition under the Mission could come next year. Then, there are only three other States that have active solar initiatives — Madhya Pradesh, Karnataka and Punjab — all adding to a capacity of less than 350 MW.</p> <p>The Tangedco-awarded solar projects constitute a major chunk of the industry, there are tens of other projects — mostly under 1 MW — happening in the State all the time. Industries and commercial establishments are going in for solar in the belief that the ‘solar purchase obligation’ will come for sure one day or the other, and also for some energy security. Profit-making entities find solar worthwhile when looked at in conjunction with the tax-saving accelerated depreciation. These are all small projects scattered across the State — and that’s how ‘solar’ should be. A good guess is that these will add up to between 100 and 150 MW this year.</p> <p><a href="http://www.thehindubusinessline.com/industry-and-economy/solar-industry-enthused-by-rajagopals-appointment-to-regulatory-panel/article5534713.ece">Source</a></p> Anonymoushttp://www.blogger.com/profile/02062818443006094580noreply@blogger.com0tag:blogger.com,1999:blog-7957523547905860296.post-3860129603387683002014-01-04T09:44:00.001+05:302014-01-04T09:44:02.985+05:30DERC plans new regulations for tariff fixation...<p> </p> <p><img style="background-image: none; border-bottom: 0px; border-left: 0px; margin: 0px 5px 5px 0px; padding-left: 0px; padding-right: 0px; display: inline; float: left; border-top: 0px; border-right: 0px; padding-top: 0px" title="DERC plans new regulations for tariff fixation..." border="0" alt="DERC plans new regulations for tariff fixation..." align="left" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhJIvKE99v7fRJO0F4jjyItc3uBdiUeQrOd2D7hRKWSoyNl3cMrZlGrqodOrfkNrUypi3kbSPHzmphNGT775x_zazqH68nIwXQ-Y2uC2iY49Mp8H-_xTTAH4Da2cwlw48e9qxiCovlfuA/?imgmax=800" width="200" height="199" /></p> <p><strong><em>Delhi Electricity Regulatory Commission (DERC) has proposed to adopt new power regulations from next fiscal to help fix tariff. The new regulations will replace the current average revenue requirement (ARR) petitions that discoms file every year.</em></strong></p> <p>DERC chairperson P D Sudhakar said, "Discoms have already prepared their ARR for tariff submissions for 2014-15 so we plan to adopt the new regulations the year after," he said. The new accounting format has been prepared by the forum of regulators and is being slowly adopted by electricity regulators across the nation. "The present ARR is not submitted in this new format. The new regulations will help facilitate further processing easily and be useful. Discoms will have to submit information in a format that will enable us to assess data conveniently. The forum of regulators had come out with model regulations and we have made certain changes in the regulations we wish to adopt," Sudhakar added.</p> <p>DERC is keen to have the new regulations in place at the earliest. "A draft of the regulations has been put up on the Commission's website for information and comments and public feedback is invited till January 31," said an official. Till date, only Tata Power has submitted their ARR petitions to DERC for tariff determination. Petitions from two BSES discoms, Rajdhani and Yamuna, are still awaited.</p> <p>Meanwhile, discoms are preparing for the CAG audit next week as ordered by Delhi government. Sources said CAG office is likely to officially notify the power companies early next week for the audit.</p> <p><a href="http://timesofindia.indiatimes.com/city/delhi/DERC-plans-new-regulations/articleshow/28353044.cms">Source</a></p> Anonymoushttp://www.blogger.com/profile/02062818443006094580noreply@blogger.com0tag:blogger.com,1999:blog-7957523547905860296.post-85236549355241098262014-01-02T12:24:00.001+05:302014-01-02T12:24:49.630+05:30MP Discoms gearing up for 25% hike in tariff...<p> </p> <p><img style="background-image: none; border-bottom: 0px; border-left: 0px; margin: 0px 5px 5px 0px; padding-left: 0px; padding-right: 0px; display: inline; float: left; border-top: 0px; border-right: 0px; padding-top: 0px" title="MP Discoms gearing up for 25% hike in tariff..." border="0" alt="MP Discoms gearing up for 25% hike in tariff..." align="left" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj6Ut8ptbwjhyglzI9-7whLTL2Gd0QGqOfpF_uBE7zORmozFky6jjyODv0mF91HvPr6JVDkyC9ej7Anz4w6Y98fwqk_ikxqMmI8k_x5Jn_fQ7KPxTtEITowu2f_dhy5ezAQVlwKSM-cDw/?imgmax=800" width="167" height="200" /></p> <p><strong><em>Electricity consumers are in for a real shocker in 2014 as the power distribution companies (discoms) gearing up to demand 25% hike in tariff for the coming year. Things are going to worsen for the people who are already facing the brunt of power tariff hike due to fuel cost adjustment (FCA).</em></strong></p> <p>The discoms are likely to submit their average revenue requirement (ARR) details and seek increase in power tariff from the Madhya Pradesh Electricity Regulatory Commission (MPERC) by January 21. As per norms the MPERC seeks public opinions, and crosschecks the requirements before approving the final tariff hike for the financial year- the entire process is to be completed within 90 days of the submission of ARR projections by the companies.</p> <p>Discom sources said that the companies will demand a hike of 23-25% hike in power tariff, however how much hike will be allowed, depends on the commission.</p> <p>Managing director the Madhya Pradesh power management company, Manu Shrivastav said, "We have sought time till January 21 from MPERC and companies are currently calculating the ARR and based on it we will file demand for hike." </p> <p>The companies cumulatively projected Rs 20,599 crore in 2013-14 and demanded a tariff hike of 20-25% percent but MPERC allowed just .77% hike. Requesting anonymity an official of a company attributed the low increase in power tariff in year 2013-14 to the upcoming state assembly elections. It is more likely that if the tariff rates for this financial year are approved by MPERC before the Lok Sabha elections, the companies will again be at the loosing ends, he added.</p> <p><a href="http://timesofindia.indiatimes.com/city/bhopal/Discoms-gearing-up-for-25-hike-in-tariff/articleshow/28273449.cms">Source</a></p> Anonymoushttp://www.blogger.com/profile/02062818443006094580noreply@blogger.com0tag:blogger.com,1999:blog-7957523547905860296.post-72280300809123014842014-01-02T10:01:00.001+05:302014-01-02T10:01:48.628+05:30MERC invites bids for a second power distribution licence in Mumbai...<p> </p> <p><img style="background-image: none; border-bottom: 0px; border-left: 0px; margin: 0px 5px 5px 0px; padding-left: 0px; padding-right: 0px; display: inline; float: left; border-top: 0px; border-right: 0px; padding-top: 0px" title="MERC invites bids for a second power distribution licence in Mumbai..." border="0" alt="MERC invites bids for a second power distribution licence in Mumbai..." align="left" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhfWKwBvGYvMdgcYMsTSaiEO1y_3HR5kYdfrqMkJVFA0mvU0_lIMSJVcbc4lh_xWQci-IgGKppkS072z-GQVSzWL60H_kX5sFbGVu4HEsqcnas7kKh4n1PnPZMzFVucFmigTaof18Mqig/?imgmax=800" width="200" height="150" /></p> <p><strong><em>Maharashtra Electricity Regulatory Commission (MERC) has invited bids for a second power distribution licence in Mumbai which is currently held by Tata Power Co. Ltd.</em></strong></p> <p>Tata Power’s licence ends on 15 August.</p> <p>Currently, Mumbai is served by three distribution utilities—municipal undertaking Brihanmumbai Electric Supply and Transport or BEST, Tata Power, and Reliance Infrastructure Ltd.</p> <p>According to a 2008 Supreme Court verdict, Tata Power has distribution licence for Colaba in the south to Mahim in the north and from Nariman Point in the south to Saion in north, served exclusively by BEST. However, BEST does not want Tata Power to enter the island city by claiming that, under the Electricity Act 2003, a municipal undertaking enjoys monopoly in its licence area. BEST and Tata Power are fighting out the issue in the apex court.</p> <p>Since the apex court recognized the right of Tata Power in 2008 to enter into retail power distribution business, it has managed to lure 414,000 consumers from Reliance Infrastructure.</p> <p>According to MERC’s tender notice, out of the 414,000 consumers of Tata Power, 87% are domestic consumers, 11% are commercial consumers and 2% are industrial consumers.</p> <p><a href="http://www.livemint.com/Industry/VPtNBIcWnTPJwjlmVZfROP/MERC-invites-bids-for-a-second-power-distribution-licence-in.html">Source</a></p> Anonymoushttp://www.blogger.com/profile/02062818443006094580noreply@blogger.com0tag:blogger.com,1999:blog-7957523547905860296.post-75691105730061018582013-12-31T10:02:00.001+05:302013-12-31T10:02:56.660+05:30Indonesian coal to be part of index determining power tariffs...<p> </p> <p><img style="background-image: none; border-bottom: 0px; border-left: 0px; margin: 0px 5px 5px 0px; padding-left: 0px; padding-right: 0px; display: inline; float: left; border-top: 0px; border-right: 0px; padding-top: 0px" title="Indonesian coal to be part of index determining power tariffs..." border="0" alt="Indonesian coal to be part of index determining power tariffs..." align="left" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj9bHfdUagwlbu94meO7piuJxKTr7t3M4f6WxfdkhZdu-zclDf896zJd3yQNu95j_P86Nm3I5NWsTzR5tHruhB8Ydf_5ZluPy37MGSuyIC-g8T_fUIPch7Rs9qK6VDzffUbcZniV-jcqw/?imgmax=800" width="200" height="134" /></p> <p><strong><em>Power sector regulator CERC has decided to provide 50% weightage for Indonesian coal in the benchmark index that is used to determine escalation rates for electricity generated using imported dry fuel.</em></strong></p> <p>The move would help in having a benchmark in deciding the escalation rates for electricity generated by power plants that are fired by Indonesian coal.</p> <p>It also assumes significance amid deadlock between various power generators and procurers over increasing the electricity tariff due to rise in imported coal prices.</p> <p>The Central Electricity Regulatory Commission has decided to include Indonesian coal, besides South African and Australian dry fuel, in the composite index for imported coal for payment purposes.</p> <p>Currently, for payment purposes, the index takes into account only Australian and South African coal.</p> <p>The Commission said that the decision to revise the index has been taken after considering the composition of steam coal imports as well as the importance and acceptability of indices in international contracts.</p> <p>The Commission said in an order dated December 23rd that "The weights of different coal in the composite index shall include 25% Australian coal, 25% South African coal and 50% Indonesian coal."</p> <p>CERC has the mandate to notify the escalation rates for imported coal used to fire power plants. These rates are notified every 6 months.</p> <p>According to the watchdog, Indonesian coal has been included in the index considering that it makes up for a pre dominant share of steam coal imports into the country.</p> <p>In 2010 to 2011, period about 73% coal was imported from Indonesia while 24% was from South Africa.</p> <p>Average import of steam coal for the last 3 years shows about 76% from Indonesia and 19% from South Africa.</p> <p>During the same period, the dry fuel import from Australia was just about one per cent.</p> <p>The Commission said that despite insignificant steam coal imports from Australia, it would have 25 per the Commission said in an order dated December 23rd weightage in the index.</p> <p>Thr soiurb said that Australian coal has been retained in the composite index despite very low volume of consumption in India due to its liquidity, acceptability for contracts, and possibility of increased use of Australian coal in future."</p> <p>The new index should be used to determine the escalation rates from April 1st 2014.</p> <p>Source: Business Standard</p> Anonymoushttp://www.blogger.com/profile/02062818443006094580noreply@blogger.com0tag:blogger.com,1999:blog-7957523547905860296.post-49533277068174636032013-12-30T22:07:00.001+05:302013-12-30T22:07:58.360+05:30Government has no authority to reduce power tariffs: DERC<p> </p> <p><img style="background-image: none; border-bottom: 0px; border-left: 0px; margin: 0px 5px 5px 0px; padding-left: 0px; padding-right: 0px; display: inline; float: left; border-top: 0px; border-right: 0px; padding-top: 0px" title="Government has no authority to reduce power tariffs: DERC" border="0" alt="Government has no authority to reduce power tariffs: DERC" align="left" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhiR5lsfBYnwA4Y_40ba8L4o5XaH48UvfZKWKLJNsa1mETXz6kbBQRGYYKtjEXvSCGPF9r4Uee-jaKxy9_5TH_K_mQl9BEUrSAnV08C8aaNyI275bu7BluTaOQK3E29s9EeKo94mGlIMQ/?imgmax=800" width="200" height="199" /></p> <p><strong><em>Delhi's electricity regulator has said the government cannot interfere in fixing tariff though it can subsidise consumers, highlighting the potential difficulties facing Arvind Kejriwal, the new Delhi CM, whose party has promised to halve electricity prices in the Capital.</em></strong></p> <p>"The government cannot interfere in tariff fixation. It is a regulatory issue," PD Sudhakar, chairman, Delhi Electricity Regulatory Commission, told ET.</p> <p>"We fix the tariff as per law, taking into account all economic considerations. The government cannot interfere in the process. But if it wants to support people, it can offer a subsidy to reduce power tariff," he said.</p> <p>"How do they (Aam Aadmi Party) propose to reduce the tariff? We fix the tariff after due diligence and it is difficult to reduce tariff beyond a point as 70% of Delhi's power comes from outside and we have no control over the cost of power," the state power watchdog said.</p> <p>"But by law, the state government can offer subsidy. To what extent they would want to subsidise is up to them," Sudhakar said.</p> <p>The meteoric rise of AAP, which eventually led to Kejriwal becoming the chief minister of Delhi, was fuelled, at least in part, by promises which many economists would term populist.</p> <p>These include providing 700 litres of free water, the promise to cut electricity rates in the city and conducting audit of power distribution companies (discoms). While many Delhi residents were enthused by the prospects of cheaper power, the power distribution companies have said it will be "nearly impossible" to lower the rates, given that their accumulated losses amount to Rs 11,000 crore.</p> <p>Discoms argue that in the past 10 years, cost of power has increased 300%, mainly because of higher coal prices and a rise in the financing charges due to higher interest rates, while the rate at which it is sold to retail consumers has increased by only 70% during the period.</p> <p>Delhi has three power discoms, two controlled by Reliance Infrastructure and one by Tata Power. The state government owns a 49% stake in each discom.</p> <p>"If they (AAP) feel the accounts are fraudulent and have been under-reported by 50%, it's a matter of their perception. Now they have formed the government, which is a part owner of the discoms. We have done our job carefully, but if they want they can get auditors and fix any issue they may come across," Sudhakar said. The total annual revenue of the three discoms in Delhi is around Rs 15,000 crore. If the government offers to lower tariff by 50%, it may result in an additional annual burden of Rs 7,500 crore on the state, experts tracking the sector said.</p> <p>Sudhakar also dismissed arguments that the state's discoms were making profits on surplus power available to them. "Delhi has 20-30% surplus power during nonpeak hours, which is fed back into the grid at rates fixed by the Central Electricity Regulatory Commission. Due to change in norms, the returns the state gets are low and we are actually making losses on it." Industry sources said during the 2010 Commonwealth Games, the Delhi government had asked discoms to tie up additional power to meet the spike in demand.</p> <p>Post the event, the city has had surplus power which it can feed back into the grid at rates fixed by CERC or sell on the power exchanges or through bilateral pacts. However, most state power distribution companies choose load shedding over buying power as they are sitting on huge losses. Consequently, there are not too many takers for the surplus power from Delhi and the city state ends up selling it back to the national transmission grid.</p> <p>Long before his election campaign, Kejriwal had alleged the Sheila Dikshit-helmed government was in cahoots with the discoms, which resulted in wrongful gains to the latter. He had cited a 2010 estimate by Brijnder Singh, the chairman of DERC at the time. Singh had said that discoms were making large profits and had recommended reducing rates by 23%.</p> <p>According to Singh, discoms would have made profits of Rs 3,577 crore from sale of surplus energy, but his recommendation was rejected and was not incorporated in the final tariff order.</p> <p>This issue was contested by social worker and former MLA Nand Kishore Garg through a public interest litigation in the Delhi High Court, to which AAP leader Prashant Bhushan was also a party. But the court ruled that Singh's recommendation was not the official tariff order.</p> <p>In its judgement in May 2011, the Delhi High Court said, "The notings on the files by the commission do not constitute an 'order' under the 2003 Act...The commission shall proceed afresh by following the due procedure and do the needful and not afford any kind of opportunity for criticism and determine the tariff."</p> <p>Sudhakar said the court order had settled the issue: "This argument (citing Singh's order) keeps resurfacing, but the Delhi High Court has already dismissed this since there was no official DERC order on it. The so-called profit that was mentioned was based on certain assumption that did not come true."</p> <p>Officials at the regulator said during Singh's tenure, he had expected that Delhi would get an additional 5,000 mw capacity in 2010-11 which could be sold at a premium to make profits. However, these projects were either delayed or shelved. The state, thus, never got this capacity and therefore there were no profits.</p> <p><a href="http://economictimes.indiatimes.com/news/news-by-industry/energy/power/government-has-no-authority-to-reduce-power-tariffs-derc/articleshow/28118482.cms">Source</a></p> Anonymoushttp://www.blogger.com/profile/02062818443006094580noreply@blogger.com0tag:blogger.com,1999:blog-7957523547905860296.post-32206429698657473672013-12-30T22:01:00.001+05:302013-12-30T22:01:14.820+05:30PSERC passes on customs duty benefit of Rs.600 crore to consumer...<p> </p> <p><img style="background-image: none; border-bottom: 0px; border-left: 0px; margin: 0px 5px 5px 0px; padding-left: 0px; padding-right: 0px; display: inline; float: left; border-top: 0px; border-right: 0px; padding-top: 0px" title="PSERC passes on customs duty benefit of Rs.600 crore to consumer..." border="0" alt="PSERC passes on customs duty benefit of Rs.600 crore to consumer..." align="left" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhgdTjG_VyhxzY8vZLwaAJ1FKc8ekPB5nzkQ4F_q9L8vLcp_KT29O0Sfhwi7V8M8gsnGzPbYoVA9aWBDLnoRCuDBGrS6lIuYXYLoYLA6stfGjKiWoOF92TKpIZOKtnFNBTmVblFPZCOzA/?imgmax=800" width="199" height="200" /></p> <p><strong><em>Punjab State Electricity Regulatory Commission (PSERC) has decide to pass on custom duty benefit of Rs. 600 crore availed by Sterlite Energy limited on account of grant of mega power project status to Talwandi Sabo thermal project be passed on to consumers.</em></strong></p> <p>PSERC in its order of December 27 on petition no. 41 directed the Sterlite Energy limited executing theTalwandi Sabo thermal project to render true and full account of benefits to PSPCL that ought to have accrued to it on account of grant of mega power status to project.</p> <p>The Punjab consumer is going to benefit to the tune of Rs. 104 crore per annum for the next 25 years as the fixed charges of project will come down by 8 paise per unit. With a generation potential of the plant being 13000 million units, the Punjab consumer shall gain by Rs. 2600 crore over a period of next 25 years.</p> <p>PSPCL has filed a petition before Commission seeking directions to Sterlite Energy limited on account of mega power status granted to 1980 MW Talwandi Sabo project and pass on all financial benefits claimed to PSPCL as per power purchase agreement.</p> <p>PSPCL has claimed that the benefits of status were not applicable at the time of bidding in 2006 as per existing laws .In December 2009 Government of India revised the policy guidelines and modified the mega power policy. Talwandi Sabo thermal project was granted this status in August 2010.</p> <p>Punjab Government issued the essentiality certificate to obtain necessary customs duty benefits and the company executing the project gave the undertaking and claimed all the benefits The company claimed that it is not liable to pass the benefits of new policy to PSPCL claiming that this was not a change of law. The benefits were granted to keep the power tariff low in the public interest.</p> <p>Sterlite has been benefitted to the tune of Rs. 600 crore for duty draw back the non - payment of customs duties. As per article 13 of power purchase agreement the fixed charges of 135.4 paise per unit comes down by 8.064 paise per unit. <br />Similarly the Commission had granted a relief of Rs 74 crore per annum last November from power generated from Rajpura thermal plant on similar grounds thereby passing on a benefit of 8 paise per unit totaling to Rs.1850 crore to the consumers over next five years. <br />Round up of PSERC in 2013 <br />Punjab consumer is going to gain about Rs. 300 crore during 2013-14 on as an impact of fuel audit conducted by PSERC for reducing the use of coal and other fuels at PSPCL thermal plants. This will reduce tariff by about 7.5 paise per unit. <br />Thus the vigilant eye of PSERC on private and PSPCL thermal plants is likely to reduce the electricity tariff by about 23.5 paise per unit during 2014-15, thus reducing the burden of 63 paise per unit proposed to be passed on to the consumer by PSPCL to 40 paise per unit. <br />According to In case PSERC applied the regulations strictly on PSPCL ‘s ARR petition in stringent manner ,there is a possibility of reducing the tariff during 2014-15 keeping in view the profit of PSPCL and PSTCL during 2012-13 and 2013-14 . These sources indicate that courtesy consistent tariff rises given by PSERC, the profits of PSPCL and PSTCL during last 2 years have crossed a figure of few hundred crore which the companies are hiding from the public to manage a rise in tariff during 2014-15.</p> <p>Source</p> Anonymoushttp://www.blogger.com/profile/02062818443006094580noreply@blogger.com0tag:blogger.com,1999:blog-7957523547905860296.post-45098143525862351392013-12-28T10:02:00.001+05:302013-12-28T10:02:56.217+05:30DERC turns down discoms power tariff-hike plan in Delhi...<p> </p> <p><img style="background-image: none; border-bottom: 0px; border-left: 0px; margin: 0px 5px 5px 0px; padding-left: 0px; padding-right: 0px; display: inline; float: left; border-top: 0px; border-right: 0px; padding-top: 0px" title="DERC turns down discoms power tariff-hike plan in Delhi..." border="0" alt="DERC turns down discoms power tariff-hike plan in Delhi..." align="left" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi4glshqHFgurbmD-ZPZ1iOybhq2q0k-de31ImN1Xr1dRx8TgGqsqm6vgVVnGv0mF6hvBd6q6y0akfPZlqClPMDvvUm53-ODZh1emzeNphPYRX_cHrUaOL9n2rFisH_WwNGIbLEyQHeuA/?imgmax=800" width="200" height="200" /></p> <p><strong><em>The Delhi power regulator has turned down a request by the distribution companies to hike power tariffs in the Capital, a day before the Aam Aadmi Party (AAP) chief Arvind Kejriwal takes oath as chief minister. This is probably the first time that a claim by the distribution companies has been turned down.</em></strong></p> <p> <br />Distribution companies BSES Rajdhani Power Limited (BRPL), BSES Yamuna Power Limited (BYPL) and Tata Power Delhi Distribution Limited had sought the hike as power purchase cost adjustment (PPAC) which would have been effective for the quarter of January to March 2014.</p> <p>This increase was sought to cover the increased expenses incurred by the companies from July 1 to September 30, 2013, and is done every quarter. While BYPL had asked for a steep seven per cent hike, BRPL had sought a 3.5 per cent hike, TPDDL had asked for two per cent hike.</p> <p>“There is a formula to work out PPAC, which was approved in the tariff order announced in August. After studying their claims and verifying them, we found that there was no need for an increase as they have not incurred additional cost over what has been allowed to them,” said PD Sudhakar, chairman of the Delhi Electricity Regulatory Board (DERC).</p> <p>The power tariffs were last revised for the quarter of May to July when the power regulator had approved a 3 per cent hike for TPDDL, and a 4.5 per cent hike for areas under BRPL and BYPL.</p> <p>AAP’s election manifesto says that the party will slash power tariff in the Capital by 50%. The party, set to form the government in Delhi, has also promised to conduct audits of the distribution companies.</p> <p>A possible fallout of the political changes in Delhi was witnessed recently when TPDDL, which supplies electricity to north Delhi, submitted its annual revenue requirement (ARR) to DERC and didn’t seek a hike. “They have left it on us to decide. They submitted their papers giving out financial details and have admitted that there is a shortfall,” said a senior official. BRPL and BYPL are yet to submit the ARR.</p> <p><a href="http://www.hindustantimes.com/india-news/newdelhi/delhi-regulator-turns-down-discoms-power-tariff-hike-plan/article1-1167079.aspx">Source</a></p> Anonymoushttp://www.blogger.com/profile/02062818443006094580noreply@blogger.com0tag:blogger.com,1999:blog-7957523547905860296.post-72229277354567769232013-12-26T10:04:00.001+05:302013-12-26T10:04:09.734+05:30Study: Takeaways from CERC tariff norms...<p> </p> <p><img style="background-image: none; border-bottom: 0px; border-left: 0px; margin: 0px 5px 5px 0px; padding-left: 0px; padding-right: 0px; display: inline; float: left; border-top: 0px; border-right: 0px; padding-top: 0px" title="Study: Takeaways from CERC tariff norms..." border="0" alt="Study: Takeaways from CERC tariff norms..." align="left" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEga_lOGw6i3P7PFenCPceWv7pvUGxkrSv3rHE_rQrV1vaUv5-S1ifzo9QZzPT-bCe8k5uANxjAKBWGq4CV6i33ksDN_iAIYO0sG1HcP5Hbd22wKGhJqXG5zsBIs6Q5vQiOkTHEf0RMrGQ/?imgmax=800" width="200" height="125" /></p> <p><strong><em>The Central Electricity Regulatory Commission (CERC) has come out with a new set of draft tariff regulations for 2014-19. The regulations, when approved, would be applicable to all central sector power generating and transmission companies, and generators and transmission licensees proposing to sell power to more than one state or those involved in inter-state transmission. </em></strong></p> <p> </p> <p>We have seen a big thumbs down to the draft regulations by the investor community, manifested in dragging down of the share price of NTPC, the biggest power generator in the country, by almost 11.5% on the day the draft regulations were made public. Does this mean the new regulations are consumer friendly?</p> <p> <br />While promoting investment in the power sector forms a part of CERC’s mission, bringing about efficiency in the operations of the power generation and transmission companies and tariff rationalisation are equally important objectives of the commission. CERC’s tariff regulations have to take a balanced view about the concerns of the power generators, transmission companies and investor community on one hand and that of the consumers of electricity on the other. What is important is that the final regulations are based on the principle of transparency, techno-economic rigour and fairness so that neither consumers nor generators gain unduly at the expense of the other. Looking at the proposed regulations from this perspective, has CERC done a good job in protecting the interests of both the stakeholders?</p> <p> <br />Data from the Power Finance Corporation’s (PFC) report on the performance of the state power utilities for 2006-07 to 2011-12 shows that, at the aggregate national level, the cost of power purchase forms about 61-62% of the total expenditure of distribution companies (discoms) supplying power to ultimate consumers. Analysis of the data from PFC also shows that the power purchase costs of discoms have risen at a compounded annual rate of 16.42% between 2006-07 and 2011-12, when coal availability and hence higher coal cost was not much of a concern. Another set of data ranging over the past 10 years shows that the central sector power generating companies, the main entities coming under the purview of the proposed regulations, have been consistently meeting 41-42% of the power requirements of the discoms. In a sense, the proposed regulations will have over 24% impact on the tariffs that consumers would have to pay in a scenario where costs of power purchase as well as total discom expenditure has been rising at over 16% per annum compounded for the past 5-6 years. So, it is important that the regulations get it right from the consumers’ perspective.</p> <p> <br />From the consumers’ perspective, the most contentious provision in the proposed regulations, at least from the generator and investor community point of view, namely the rationalisation of the unjust tax arbitrage that the generating and transmission companies were perhaps unjustly enjoying, is a welcome step. Some analysts have estimated the withdrawal of tax arbitrage hit to companies like NTPC to be about R800 crore per year. With NTPC generating about 232 billion units in 2012-13, this will translate into consumers gaining a respite of about 3 paise per unit. <br />Another key change in the proposed regulations is linking generation incentives to plant load factor (PLF) or actual generation achieved rather than on plant availability, which is the case in existing regulations (2009-14). The proposed regulations prescribe that an incentive of R0.5/kWh would be available to generators if the normative PLF is achieved. </p> <p>This is another fine example of the balanced approach of the proposed draft regulations. Under existing regulations, since the incentive is based on availability rather than actual PLF, generators still earn the incentive even though they do not actually generate or dispatch power. This clause in the existing regulations is becoming contentious. In recent times, due to non-availability of linkage coal, generators, in order to fulfil their PPA requirements, have been procuring coal from alternate sources such as e-auction or imports. </p> <p>The coal from alternate sources being 2-3 times the linkage coal price, however, increases the generation cost that is sometimes unaffordable to the state utilities and they do not schedule the power from such generating assets. Under the present regulations, discoms have to pay the full incentive to the generator, although they may not actually be buying the power as the payment of incentive is linked to availability and not actual generation or PLF. By changing over from availability to PLF, discoms will not have to pay the incentive as long as they do not buy or schedule power to the extent of norms prescribed in the new proposed draft regulations, which safeguard the supply companies and its consumers from payment of incentive without buying or scheduling the generation beyond the prescribed norms. But this will result in generators losing part of earnings. </p> <p>The extent of earning loss that may be suffered by a leading generator like NTPC could be in the region R140 crore per year per 1% loss in PLF below the prescribed norm if buyers (discoms) do not want to dispatch or schedule NTPC plants due to part of generation being done with costly imported or e-auction coal. The proposed regulations, however, have a provision which states that the generators can keep on generating as long as the weighted average price of coal, when mixed with coal from alternate sources, is not more than 30% the price of coal without considering alternate sources. Thus, generators can hope to meet the prescribed norm for PLF without having to worry whether or not the discoms will schedule their generation as long as the weighted average price of coal they use for generation is not 30% above the price of linkage coal. This provision does not completely safeguard the interest of the generators but is also not as one-sided as the provisions in the existing regulation, which put the entire burden on the consumers.</p> <p> <br />Other changes in the proposed regulations are with respect to operating norms such as station heat rate, auxiliary consumption and secondary fuel consumption. The norms have been further tightened, which is a positive step from the consumers’ point of view as it would lead to reduction of consumer tariffs. It is also a constructive step from the environmental point of view as tightened norms would lead to lesser GHG emissions, which is important from Indian perspective, as not only is power sector major contributor to CO2 emissions (40-42% of total), but per capita CO2 emissions in India, although way below world average per capita emissions, are rising at three times the world average over 8-9 years.</p> <p> <br />Another positive takeaway from the proposed draft regulations is providing higher return on equity (ROE) for hydro-generation projects as compared to thermal-generation projects. This is necessary to bring parity in the effective ROE rate between hydro and thermal power generation, as hydro projects, due to their long gestation period, need higher ROE to be on par with thermal plants in effective return terms.</p> <p> <br />Finally, it is well to remember that these regulations apply to existing plants and all the PPAs signed before January 5, 2011. Thereafter, tariff is to be determined by competitive bids. As more and more capacity gets added, the share of electricity procured on cost plus return basis will decline and the regulator’s role in tariff determination will be of less importance to investors.</p> <p><a href="http://www.financialexpress.com/news/column-takeaways-from-cerc-tariff-norms/1211728/0">Source</a></p> Anonymoushttp://www.blogger.com/profile/02062818443006094580noreply@blogger.com0tag:blogger.com,1999:blog-7957523547905860296.post-76297654326421417902013-12-26T09:59:00.001+05:302013-12-26T09:59:00.876+05:30DERC ponders over discoms’ demand for new rates...<p> </p> <p><img style="background-image: none; border-bottom: 0px; border-left: 0px; margin: 0px 5px 5px 0px; padding-left: 0px; padding-right: 0px; display: inline; float: left; border-top: 0px; border-right: 0px; padding-top: 0px" title="image" border="0" alt="image" align="left" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg39sGYt3OthSl5UwtEuPVnMGgjrHPZjgsO2GMeg6UqxJWp0aZLR78ReCmlT1UgdWRbDKLmi-wHRTxNTgiryoNY9qydAmF_FCVy5CE6wm63sJmjbTVyVRfXWTuRKE5PFPqSF9IO9ZluWg/?imgmax=800" width="200" height="133" /></p> <p><strong><em>Aam Aadmi Party may have promised to slash power tariff in the city by 50% but Delhi Electricity Regulatory Commission (DERC) is considering the discoms' demand for new rates towards power purchase adjustment costs (PPAC) from January 1.</em></strong></p> <p>"We are studying the claims made by the discoms and verifying them. Depending on whether the discoms have incurred additional costs over what has been allowed to them, PPAC may or may not be given to them. We are hoping to pass an order by the end of the month," said a senior DERC official.</p> <p>Private discoms BSES Rajdhani, BSES Yamuna and Tata Power Delhi have sought the hike as PPAC which will be charged from January to March 2014 and will cover the increased expenses incurred by the companies from July 1 to September 30, 2013.</p> <p>Appellate Tribunal of Electricity has allowed PPAC to the discoms for the expenditure incurred in power purchase and increased generation costs over and above what has been allowed to them in the tariff.</p> <p>BSES Rajdhani has sought a 3% hike, Tata Power Delhi a 2% hike and BSES Yamuna a 7% hike that DERC has already scaled down to 3%.</p> <p>After the tribunal had asked all state regulatory commissions to implement the power purchase adjustment formula rather than just allowing the variable (fuel) cost, DERC introduced the provision of fuel adjustment from the tariff of 2012-13 and then changed it to overall power purchase during the latest tariff hike in July 2013.</p> <p>In the 2013-14 tariff order issued in July, PPAC had been merged with the tariff for the last quarter. This is the first time that the discoms have sought the costs separately. "PPAC is given only when discoms incur additional costs not covered in tariff," said chairperson P D Sudhakar. A CERC proposal, if implemented, may reduce NTPC generation costs and discoms may not require PPAC in the next quarter, sources said. "We will know only when the proposal is finalized," said Sudhakar. <br /></p> <p><a href="http://timesofindia.indiatimes.com/city/delhi/DERC-ponders-over-discoms-demand-for-new-rates/articleshow/27927441.cms">Source</a></p> Anonymoushttp://www.blogger.com/profile/02062818443006094580noreply@blogger.com0tag:blogger.com,1999:blog-7957523547905860296.post-68043771997097110282013-12-25T20:38:00.001+05:302013-12-25T20:38:32.833+05:30CERC to hear Sasan commissioning case tomorrow...<p> </p> <p><img style="background-image: none; border-bottom: 0px; border-left: 0px; margin: 0px 5px 5px 0px; padding-left: 0px; padding-right: 0px; display: inline; float: left; border-top: 0px; border-right: 0px; padding-top: 0px" title="CERC to hear Sasan commissioning case tomorrow..." border="0" alt="CERC to hear Sasan commissioning case tomorrow..." align="left" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiXlM_6bIXBvgOUTwIGr6ksqOt5HyI060SB7Xj4TGa2MPTn4K5D5NOxuLpiS9jwdaAFB-FBqUxtfvWi6jcQt0lLdtDOFNdr3cRd3v9avx3iO8TsW8AB-hcDL7QJgJdb_LooYmQpUqZ4jQ/?imgmax=800" width="200" height="104" /></p> <p><strong><em>Electricity regulator CERC, will tomorrow, hear Western Region Load Despatch Centre's petition challenging Reliance Power's claim of commissioning the first unit of its Sasan ultra mega power project, in Madhya Pradesh.</em></strong></p> <p>CERC (Central Electricity Regulatory Commission) will hear issues related to commercial operation of Sasan plant, according to information available on the regulator's website.</p> <p>The Western Regional Load Despatch Centre (WRLDC), which operates the power grid in the region, had questioned the start date of commercial operations at the Sasan plant, where the first 660-MW unit was commissioned in March.</p> <p>Based on a petition filed by the WRLDC, the CERC had set aside a certificate issued by the independent engineer for declaration of commercial operations at the Sasan plant.</p> <p>Reliance Power filed an appeal with the Appellate Tribunal for Electricity (APTEL) on the grounds that CERC's order is violative of principles of natural justice and is not tenable in law.</p> <p>APTEL set aside CERC's order on August 13 and directed it to decide afresh on the matter of commercial operation date.</p> <p>While referring to the judgement of APTEL, WRLDC in its petition with the CERC said that since the issue of maintainability is linked with the main issue on merits, the commission can consider all issues and then come to a conclusion.</p> <p>Sasan Power Ltd (SPL) is the wholly owned subsidiary of Reliance Power which is executing the 4,000 ultra mega power project. The first unit started producing power on March 30, Reliance Power said in a BSE filing on April 4.</p> <p>The company is executing UMPPs in Sasan, Krishnapatnam (Andhra Pradesh) and Tilaiya (Jharkhand).</p> <p>Source: Business Standard</p> Anonymoushttp://www.blogger.com/profile/02062818443006094580noreply@blogger.com0tag:blogger.com,1999:blog-7957523547905860296.post-20585769638491018202013-12-23T14:08:00.001+05:302013-12-23T14:08:55.299+05:30Tata Power gets approval to postpone solar target until 2016...<p> </p> <p><img style="background-image: none; border-bottom: 0px; border-left: 0px; margin: 0px 5px 5px 0px; padding-left: 0px; padding-right: 0px; display: inline; float: left; border-top: 0px; border-right: 0px; padding-top: 0px" title="Tata Power gets approval to postpone solar target until 2016..." border="0" alt="Tata Power gets approval to postpone solar target until 2016..." align="left" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh74EIMy4QlChgxbQCRlg70G2ksEMTC9vE7tZxxE-AfjJd_s8zQ1LiXnq8nwcAIHwn77HzrerCMZuW5UGxxNWDS25ZlkoW-bZh4RMVSCL843ljPsWIgCK_vsLL4Y7_qxOrwUjMHQIYWAg/?imgmax=800" width="200" height="143" /></p> <p>Tata Power Co. Ltd won approval from an Indian state electricity regulator to postpone fulfilment of annual solar-power procurement targets by as many as five years to 2016.</p> <p> <br />The utility unit of India’s biggest industrial group has been unable since 2010 to source enough solar power to meet government renewable mandates because of a shortage of sun-based generation in the country, the Maharashtra Electricity Regulatory Commission said in a 20 December order.</p> <p> <br />“It faced a genuine difficulty,” the commission said, waiving fines and ordering the company to fulfil five years of targets by 31 March 2016.</p> <p> <br />The government requires electricity distributors and large industrial companies to get as much as 10% of their power each year from renewables. In Maharashtra state, where Tata Power generates and distributes electricity, the company faced a solar procurement target of 0.25% that rises to 0.5% in the fiscal year starting April.</p> <p> <br />India doesn’t have the 3,500 megawatts of installed solar capacity required to allow all companies to comply with their obligations, according to the order. As of October, the nation had 2,080 megawatts, less than 60% of the capacity needed, according to data from the ministry of new and renewable energy.</p> <p><a href="http://www.livemint.com/Companies/RpnlMLF6Favvt1whiOCnpJ/Tata-Power-gets-approval-to-postpone-solar-target-until-2016.html">Source</a></p> Anonymoushttp://www.blogger.com/profile/02062818443006094580noreply@blogger.com0tag:blogger.com,1999:blog-7957523547905860296.post-10567001137740095382013-12-23T11:03:00.001+05:302013-12-23T11:03:37.051+05:30Arunachal Government imposes load restrictions on power supply...<p> </p> <p><img style="background-image: none; border-bottom: 0px; border-left: 0px; margin: 0px 5px 5px 0px; padding-left: 0px; padding-right: 0px; display: inline; float: left; border-top: 0px; border-right: 0px; padding-top: 0px" title="Arunachal Government imposes load restrictions on power supply..." border="0" alt="Arunachal Government imposes load restrictions on power supply..." align="left" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgo4aEObDAH-oi7CKxEDR0FkUNQH3lTtTpOfxsMxgfbnjiw92oMxAt4NmTtP9kp52iv_bxeMMPIMikCfTCmDixWmFcJrRRgEoN2G6uYuaHT4_NfliH1691TvgIIAN7xSJXuTuDJdvxPyg/?imgmax=800" width="200" height="124" /></p> <p><strong><em>In view of the onset of the lean hydro season and subsequent reduction in the state's power allocation, the Arunachal Pradesh government has imposed a load restriction on power supply as per allocation with immediate effect.</em></strong></p> <p>"As power availability and demand vary from time to time, the notice revision by various generating stations, the quantum of power allocated, duration of imposition and area to be covered may vary with time," an official order said here on Saturday.</p> <p>All divisions and districts should strictly abide by all directives, the order issued by the State Level Distribution Centre (SLDC) added.</p> <p>In the event of non-compliance by any division, the government has empowered the SLDC as per regulations of the Arunachal Pradesh State Electricity Regulatory Commission (APSERC) and the Central Electricity Regulatory Commission (CERC) to disconnect the entire division or district from the grid sub-station to protect the stability of the system, the order said.</p> <p><a href="http://timesofindia.indiatimes.com/city/guwahati/Arunachal-govt-imposes-power-restrictions/articleshow/27777371.cms">Source</a></p> Anonymoushttp://www.blogger.com/profile/02062818443006094580noreply@blogger.com0tag:blogger.com,1999:blog-7957523547905860296.post-91276536413460874162013-12-23T09:58:00.001+05:302013-12-23T09:58:45.492+05:30MERC against competitive bidding in wind power purchase by state Discoms...<p> </p> <p><img style="background-image: none; border-bottom: 0px; border-left: 0px; margin: 0px 5px 5px 0px; padding-left: 0px; padding-right: 0px; display: inline; float: left; border-top: 0px; border-right: 0px; padding-top: 0px" title="MERC against competitive bidding in wind power purchase by state Discoms..." border="0" alt="MERC against competitive bidding in wind power purchase by state Discoms..." align="left" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiNKvYFaYdgxWgXrl1xLuROOuVHC8aNkWL4Z1M83oKXLU4p9PxxvNURzkyNxmCmIolwkoEgcZSCjlD1rhB5yGRTOSBNVoofQkA7JvEILcWzLK2QnGNIvJm6oPbGpKCt1Abep3vMmJWizQ/?imgmax=800" width="200" height="160" /></p> <p><strong><em>Even as MSEDCL is facing allegations of irregularities in power purchase, Maharashtra Electricity Regulatory Commission (MERC) has turned down a plea in which MSEDCL was seeking transparency.</em></strong></p> <p>MSEDCL wanted to purchase wind power through competitive bidding, but the Commission wants MSEDCL to buy it at rates fixed by it. MSEDCL filed a petition in MERC seeking a review. The Commission agreed that it was a valid point, but referred the matter to a committee headed by principal secretary (energy), with representatives of wind power companies, Maharashtra Energy Development Agency (MEDA) and consumers representatives. Incidentally, principal secretary (energy) Ajoy Mehta is also managing director of MSEDCL.</p> <p>The committee was constituted on October 1 to study wind energy situation in the state and was asked to submit its report in three months. The Commission has refused to grant interim relief to MSEDCL in the meantime.</p> <p>Mahagenco and MSEDCL had accused the Commission of favouring wind power producers. They charged that the rates of wind power approved by it are the highest in the country, but the rates of solar power, whose sole generator is Mahagenco, are one of the lowest. However, the Indian Wind Power Association (IWPA) submitted data to MERC proving MSEDCL wrong.</p> <p>MERC's rate for wind power ranges from Rs 4.93 to Rs 5.67 per unit, which is far higher than thermal power rates (except new units of Mahagenco). MSEDCL has resolutely opposed purchase of wind power on the grounds that it will burden consumers, but MERC has not refused to buy this agreement. Now, MSEDCL wants competition to lower the rates.</p> <p>During the hearing, MSEDCL submitted that the rates of solar power have come down due to competition, and the same would happen in wind also. It pointed out that Section 63 of the Electricity Act, 2003, did not make any segregation in purchase of renewable energy and non-renewable energy.</p> <p>While agreeing that wind power was costly, MERC told MSEDCL that it had to meet renewable energy purchase obligation (RPO) target set by central government. The company had failed to meet its target in 2012-13 even though the entire contracted capacity of 2,350MW had been commissioned.</p> <p>MERC has also turned down MSEDCL's plea for a uniform wind power tariff in the state. The Commission has divided the state into two zones for calculating the rates. It is Rs 4.93 per unit in one zone and Rs 5.67 per unit in the other. The Commission said in the order that zoning was done after taking views of all concerned parties and as per norms of renewable energy tariff regulations. Therefore, any revision was not desirable, it said.</p> <p><a href="http://timesofindia.indiatimes.com/city/nagpur/MERC-against-competition-in-wind-power/articleshow/27760650.cms">Source</a></p> Anonymoushttp://www.blogger.com/profile/02062818443006094580noreply@blogger.com0tag:blogger.com,1999:blog-7957523547905860296.post-24277050309744358242013-12-17T09:30:00.001+05:302013-12-17T09:30:35.729+05:30UPERC invites objections on extension to power plants...<p> </p> <p><img style="background-image: none; border-bottom: 0px; border-left: 0px; margin: 0px 5px 5px 0px; padding-left: 0px; padding-right: 0px; display: inline; float: left; border-top: 0px; border-right: 0px; padding-top: 0px" title="UPERC invites objections on extension to power plants..." border="0" alt="UPERC invites objections on extension to power plants..." align="left" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhO3zxTRBwUsnYpcSjvKA6dAkrUT8t1krt-CltlxRzcH6SH76tzVIL6uZ5AnlfM9J_548OwzNd3RKyOtVTE6E4Nvj_6PBgHkEpYfoVOFDeA96p-FgyAeErLVukzM7KC-I7OrLd2UhE8aA/?imgmax=800" width="200" height="132" /></p> <p><strong><em>With the state cabinet giving nod to 18-month extension to nine power projects, proposed to be set up through the Memorandum of Understanding (MoU) route, the ball is now in the court of Uttar Pradesh Electricity Regulatory Commission (UPERC) which will hear the case on December 26. The commission has invited objections from interested parties and stakeholders by December 18 when a hearing will be held.</em></strong></p> <p>On Monday, the commission started receiving petitions and objections into granting of extension to nine power projects. The UP Rajya Vidyut Upbhogta Parishad in its petition has challenged the extension given to the projects for the second time. </p> <p>The parishad said even though the commission is scrutinising the first extension given in June 2012, the state government went ahead to give the second extension. "This proves that the state government has nothing to do with the commission. The second extension is contempt of commission,'' said parishad president AK Verma.</p> <p>In January 2011, the Centre had stopped setting up of power plants under the MoU route saying that the cost of power from these plants would be high as compared to those proposed to be set up through competitive bidding.</p> <p><a href="http://timesofindia.indiatimes.com/city/lucknow/UPERC-invites-objections-on-extension-to-power-plants/articleshow/27490798.cms">Source</a></p> Anonymoushttp://www.blogger.com/profile/02062818443006094580noreply@blogger.com0tag:blogger.com,1999:blog-7957523547905860296.post-20355473211784436482013-12-16T22:45:00.001+05:302013-12-16T22:45:54.280+05:30CERC's new tariff norms to hit profitability of power utilities: CRISIL<p> </p> <p><img style="background-image: none; border-bottom: 0px; border-left: 0px; margin: 0px 5px 5px 0px; padding-left: 0px; padding-right: 0px; display: inline; float: left; border-top: 0px; border-right: 0px; padding-top: 0px" title="CERC's new tariff norms to hit profitability of power utilities: CRISIL" border="0" alt="CERC's new tariff norms to hit profitability of power utilities: CRISIL" align="left" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEieYJJFyU9ZiUOyOX7NjoHTc0IuW5wiV1FgKnLW5rjwSu6j2eYrR1K1JNl9XI-og9LMDMCzC1QOh6G2cLdzJxdYprJF-9lSXhmMJ5I-QhE3VkASHWTipRoALepCdimGAkJNQUx2cB6BAw/?imgmax=800" width="200" height="177" /></p> <p><strong><em>The Central Electricity Regulatory Commission’s draft tariff guidelines for power utilities applicable for 2014-2019 have potential to reduce aggregate annual profits of CRISIL-rated utilities by Rs 1,400 crore, or nearly 7 per cent of their profits in the last fiscal.</em></strong></p> <p>The rating agency CRISIL, however, believes that the guidelines will not impact the credit risk profiles of these utilities.</p> <p>According to Pawan Agrawal, Senior Director, CRISIL Ratings, “The guidelines retain the crucial feature of availability-based fixed-cost recovery, which covers debt servicing for these utilities. This will help them maintain stability in cash flows, and therefore, in credit quality.” This covers 13 CRISIL-rated power utilities which come under the purview of CERC.</p> <p>The draft guidelines stipulate a change in the manner of reimbursement of tax, a stringent incentive structure and stricter operating parameters for utilities. The adverse impact of these provisions is only marginally offset by benefits such as higher escalation rate for operating and maintenance expenses and increase in late-payment charges.</p> <p>The most important stipulation in the draft guidelines is the change in reimbursement of expense on tax relating to return on equity, which will now be linked to actual tax outflow, rather than the applicable statutory tax rates as in the existing guidelines. The guidelines propose that for generation companies, the incentive be calculated on plant load factor, rather than on plant availability factor as in the current norms.</p> <p>Generators will now have to share a fourth of their incentives with beneficiaries. For transmission companies, the threshold for availing of incentives has been enhanced.</p> <p>Agrawal said, “These provisions will reduce the power utilities’ profits from existing as well as under-implementation projects. Specifically for generators, the shift to a PLF-linked incentive structure can result in significant loss of incentive income, given the fuel availability challenges faced by the sector.”</p> <p>The draft regulations also propose stricter operating parameters such as station heat rate and secondary fuel consumption. This will primarily impact the older plants, which may find it difficult to meet the proposed parameters.</p> <p><a href="http://www.thehindubusinessline.com/industry-and-economy/cerc-norms-to-hit-profitability-of-power-utilities-crisil/article5466259.ece">Source</a></p> Anonymoushttp://www.blogger.com/profile/02062818443006094580noreply@blogger.com0