Comparison of Earlier Tariff System and Availability Based Tariff

The table below is a comparison of the earlier tariff system the availability based tariff.

Description of item

Earlier system

Draft ABT proposal

ABT order

Capacity / Fixed Charge

 

Annual Fixed Charge (AFC) include :
  • Interest on loan
  • Depreciation
  • O&M
  • Return on Equity
  • Income-Tax
  •  Interest on Working Capital 

 

Fixed charges excluding ROE i.e. all other five items of the existing system. ROE treated separately

 

Capacity charge as per existing system

 

Basis of recovery

 

Recovered at 62.79% deemed PLF. 50% AFC at 0% PLF and full recovery at 68.49% deemed PLF.

 

FC excluding RoE recovered at 30% availability on pro-rata basis between 0% and 30% availability. ROE recovered on pro-rata availability between 30% and 70%

 

Pro-rata recovery of capacity charge for :

  • NTPC stations: between 0 to 80% availability in the first year and 0 to 85% availability in the second year
  • NLC Stations Between 0 to 77% availability in the first year and 0 to 82% availability in the second year
  • NHPC Stations between 0 to 85% availability in the first year and availability in the second year to be announced by the commission separately. 

(Note: RoE, in all the three cases would be recoverable proportionately upto 80%, 77% and 82% for thermal, lignite and hydro power projects respectively. Beyond, this level, 100% RoE is recoverable.)

 

Incentives

 

Above 68.49% deemed PLF, incentives at 1 paise/KWh for each 1% increase in PLF.

 

Incentive beyond target availability of 70% is as follows:
(a) 70% to 85% : 0.4% of equity for each 1% increase in availability beyond 85%.

 

1 paise/KWh/each percentage increase in PLF of 80%/ 85% in the first/ second year for NTPC/NLC and 85% in  the first year for NHPC..

 

Sharing of fixed cost

 

Based on actual energy drawls

 

Based on allocated capacity

 

Based on allocated capacity

 

Recovery of variable cost

 

Based on actual energy drawls

 

Based on Scheduled Energy

 

Based on Scheduled Energy

 

Deviations from schedule – UI charges

 

No penalties for such deviation

 

Varying between 0 to 360 paise/kwh for the frequency range of 50.5 Hz to 49 Hz

 

Varying between 0 to 420 paise/kwh for the frequency range of 50.5 Hz to 49 Hz

 

Norms for tariff determination

 

GOI Tariff notification

 

GoI Tariff notification

 

GoI Tariff notification till such time Commission finalizes its views.

 

Procedure for payment of capacity charge if ABT is introduced in the middle of a financial year

 

Not applicable

 

Not specified

 

Specified

 

Prolonged Outages

 

Included in item (2) above

 

Provided for payment of adjusted capacity charges

 

Does not provide for payment of capacity charges

 

Marketing of surplus energy

 

Not applicable

 

Not specified

 

Encouraged and will not require commission’s approval

 

Splitting up of capacity and energy charge for hydro stations.

 

Capacity charge covered depreciation and interest on loan. Energy covered ROE, income tax, O&M and interest on working capital.

 

Capacity charge covered depreciation and interest on loan. Energy covered ROE, income tax, O&M and interest on working capital.

 

Till such commission notifies peak and off-peak energy rates for hydro-stations, primary energy charge would be taken as 90% of the lowest variable charge of the thermal power station in the concerned region. The balance of total charges would be recovered as capacity charges.

 

Payment of dues to generators

 

As per agreements

 

As per agreements

 

As per orders of the commission

 

Applicability

 

All central generating stations

 

All central generating stations staggered region wise

 

  • ABT implementation is staggered region wise
  • Fixed charge recovery and basis for incentive payments revised from 1st April, 2000.
  • GOI to decide about ABT for automatic power stations.

 

PLF for incentives during interim period

 

Not applicable

 

Not specified.

 

Till the introduction of ABT in other regions and after 1.4.2000, the actual PLF for incentive purposes for NTPC shall be 80% instead of deemed PLF of 68.49%. The PLF in the first year for incentive purposes for NHPC shall be 85%.

 

 

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