The power regulator has notified the norms to be followed for fixing tariff when distribution licencees bid for procuring power. | |
| "We have gone by the discount rates applicable elsewhere. The government has notified similar norms in other cases," said Central Electricity Regulatory Authority (CERC) Chairman, AK Basu. |
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| For bid evaluation, the CERC said the inflation rate for the indexed capacity charge component for thermal plants would be 4.61 per cent, and for hydel projects would be 4.43 per cent. |
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| The escalation rate for coal would be 1.38 per cent, and 7.71 per cent for LNG and gas, indicating that larger tariff hikes would be acceptable for LNG/gas-based generation. |
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| These rates have been fixed for six months, starting October 1, 2005, and will be reviewed thereafter. |
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| The applicable discount rate would be 6.19 per cent, the same as the ten year Government of India security, said the CERC notification. |
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| The power ministry had notified guidelines for determining tariff by bidding process for power procurement by distribution licencees in January 2005. |
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