Staff Paper - Punjab State Electricity Regulatory Commission

Staff Paper on amendments to Regulations 36 & 39.4 of ‘Draft Punjab State
Electricity Regulatory Commission (Terms and Conditions for Determination
of Generation, Transmission, Wheeling and Retail Supply Tariff) Regulations,
2014’.
The Commission issued a public notice for inviting comments and
suggestions from the public and other stakeholders on the ‘Draft Punjab State
Electricity Regulatory Commission (Terms and Conditions for Determination of
Generation, Transmission, Wheeling and Retail Supply Tariff) Regulations, 2014’.
The last date for submitting the comments and suggestions to the Commission was
03.02.2014. A public hearing in the matter was also held on 12.02.2014 at
Commission’s office. These regulations are under process with the Commission for
finalization and notification.
The Central Electricity Regulatory Commission has notified Central Electricity
Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014 vide its
notification no. No.L-1/144/2013/CERC dated 21.02.2014, effective for a period of
five years i.e. from 01.4.2014 to 31.03.2019. The ibid regulations notified by Central
Electricity Regulatory Commission shall apply in all cases where tariff for a
generating station or a unit thereof and a transmission system or an element thereof
is required to be determined by the Central Electricity Regulatory Commission under
Section 62 of the Electricity Act, 2003. As per Regulation 30 of the Central Electricity
Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014, Energy
charge rate (ECR) in case of thermal generating stations is to be determined on the
basis of ‘Weighted Average Gross calorific value of coal as received, in kCal per kg
for coal based stations’. As per Regulation 21 of Central Electricity Regulatory
Commission (Terms and Conditions of Tariff) Regulations, 2009, the Energy charge
rate (ECR) was to be determined on the basis of ‘Gross calorific value of primary
fuel as fired, in kCal per kg, per litre or per standard cubic metre, as applicable’.
As per Regulation 36 of the ‘Draft Punjab State Electricity Regulatory
Commission (Terms and Conditions for Determination of Generation, Transmission,
Wheeling and Retail Supply Tariff) Regulations, 2014’, ‘The Gross Calorific Value of
coal as fired, in kCal per kg, for calculation of fuel cost/energy charge, shall be
Gross Calorific Value of coal as received minus 150 (one hundred and fifty) kCal per
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kg or actual, whichever is less’. The above was incorporated by the Commission on
the basis of Fuel Audit study of thermal generating stations of Punjab State Power
Corporation Limited carried out by the Central Power Research Institute, Bangalore.
In the overall interest of the consumers of the State of Punjab, the
Commission proposes to adopt the ‘Weighted Average Gross calorific value of coal
as received, in kCal per kg for coal based stations’ [as specified in the Central
Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations,
2014], for working out the energy charge/fuel cost in respect of thermal generating
stations in the Draft Punjab State Electricity Regulatory Commission (Terms and
Conditions for Determination of Generation, Transmission, Wheeling and Retail
Supply Tariff) Regulations, 2014. The existing and proposed provisions in the Draft
Punjab State Electricity Regulatory Commission (Terms and Conditions for
Determination of Generation, Transmission, Wheeling and Retail Supply Tariff)
Regulations, 2014, are as under: Regulation No.
36
Existing provision
NORMS
FOR
PARAMETERS
PERFORMANCE
Proposed provision
NORMS
FOR
PARAMETERS
PERFORMANCE
The
norms
for
performance
parameters for a generating company
i.e. availability, load factor, station
heat rate, specific oil consumption
and auxiliary consumption etc. shall
be as per the CERC norms or as
determined by the Commission. The
Gross Calorific Value of coal as fired,
in kCal per kg, for calculation of fuel
cost/energy charge, shall be Gross
Calorific Value of coal as received
minus 150 (one hundred and fifty)
kCal/kg or actual, whichever is less.
The
norms
for
performance
parameters for a generating company
i.e. availability, load factor, station
heat rate, specific oil consumption
and auxiliary consumption etc. shall
be as per the CERC norms or as
determined by the Commission.
Provided that a generating unit which
undergoes
Renovation
and
Modernization, the Commission shall
specify a separate set of norms to be
adopted during the renovation and
modernization period and for the
subsequent period. These norms shall
be specified by the Commission on
case to case basis as part of the
Provided that a generating unit which
undergoes
Renovation
and
Modernization, the Commission shall
specify a separate set of norms to be
adopted during the renovation and
modernization period and for the
subsequent period. These norms
shall be specified by the Commission
on case to case basis as part of the
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39.4
Renovation and Modernization Capital
Investment approval. Consequently,
the generation tariff shall be
determined
accordingly by the
Commission.
Renovation
and
Modernization
Capital
Investment
approval.
Consequently, the generation tariff
shall be determined accordingly by
the Commission.
Energy Charge Rate (ECR) in
Rupees per kWh on ex-power plant
basis for coal based thermal power
plant shall be determined to three
decimal places in accordance with the
following formulae:
Energy Charge Rate (ECR) in
Rupees per kWh on ex-power plant
basis for coal based thermal power
plant shall be determined to three
decimal places in accordance with the
following formulae:
ECR ={(SHR – SFC x CVSF) x(LPPF
/ CVPF) + SFC x LPSFi} x
100 / (100 – AUX)
ECR ={(SHR – SFC x CVSF) x(LPPF
/ CVPF) + SFC x LPSFi} x
100 / (100 – AUX)
Where,
Where,
AUX
=
CVPF =
CVSF =
ECR
=
SHR
=
SFC
=
LPPF
=
LPSFi =
Normative
auxiliary
energy consumption in
percentage;
Weighted
Average
Gross calorific value of
primary fuel as fired, in
kCal per kg or per litre
or per cubic meter as
applicable (subject to
provisions of regulation
36 in case of coal as
primary fuel);
Weighted
Average
Calorific
value
of
secondary fuel, in kCal
per ml;
Energy charge rate, in
Rupees per kWh sent
out;
Station Heat rate, in
kCal per kWh;
Specific
fuel
oil
consumption, in ml per
kWh;
Weighted
average
landed price of primary
fuel, in Rupees per kg or
per litre or per cubic
meter as applicable;
Weighted
Average
Landed
Price
of
Secondary
Fuel
in
Rs./ml.
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AUX
=
CVPF =
CVSF =
ECR
=
SHR
=
SFC
=
LPPF
=
LPSFi =
Normative
auxiliary
energy consumption in
percentage;
Weighted
Average
Gross calorific value of
primary
fuel
as
received, in kCal per kg
or per litre or per cubic
meter, as applicable;
Weighted
Average
Calorific
value
of
secondary fuel, in kCal
per ml;
Energy charge rate, in
Rupees per kWh sent
out;
Station Heat rate, in
kCal per kWh;
Specific
fuel
oil
consumption, in ml per
kWh;
Weighted
average
landed price of primary
fuel, in Rupees per kg or
per litre or per cubic
meter as applicable;
Weighted
Average
Landed
Price
of
Secondary
Fuel
in
Rs./ml.
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