Power Pricing

Take Test: MDSP812D-Power Pricing & Power Purchase ...
14/05/20, 10:28 PM
Hemant Bhatnagar
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H My Assignments Take Test: MDSP812D-Power Pricing & Power Purchase Agreement-Jan 20-Assignment1 ?
Sem3.Power
Pricing
&
Take Test: MDSP812D-Power Pricing & Power Purchase Agreement-Jan
Power
Purchase
20-Assignment1
Agreement
Test Information
Description
Instructions Center for Continuing Education - UPES
Power Pricing & Power Purchase Agreement
Assignment 1
Total Questions: 63
Total Marks: 100
Assignment Information :
The examination will consist of only Objective type (multiple choice) questions requiring candidates to Mouse-click their
correct choice of alternatives against the related question number. The questions would carry 1 to 5 marks each depending on
the difficulty level of the question as indicated in the table below:
Difficulty Level of Questions:
1 Mark - Direct, Memory based

2 Marks - Memory & Conceptual
3 Marks - Conceptual & Analytical
4 Marks - Analytical based on understanding of concepts
5 Marks - Application based on understanding of concepts
The question paper will be for 100 marks and considering marks allotted to each question, the total number of
questions would be around 63.
There will not be negative marking for wrong answers.
In case candidate does not want to attempt the question he I she should not mouse-click any option.
The students are allowed to save the responses and come back later to resume, complete and "Save and Submit"
the assignment. However, if the Due Date has expired, then the assignment will not be accessible and will be marked
as zero. In such cases, the student can re-attempt the assignment allocated after enrolling in the subsequent
Semester.
Once submitted, that answer sheet cannot be retreieved for any editing. The student has to initiate a new attempt (if
allowed), if he has submitted the assignment by mistake.
The students are normally allowed 3 chances to attempt and submit the assignment. The number of attempts
availed is displayed under the "Test Information".
The Highest Grade of the 3 attempts shall be considered for grading.
The assignments are auto evaluated, and hence no chance of re-evaluation/re-totalling is allowed to the student.
Multiple This Test allows 3 attempts. This is attempt number 1.

Attempts
Force This Test can be saved and resumed later.
Completion
Question Completion Status:
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38
39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57
58 59 60 61 62 63
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Take Test: MDSP812D-Power Pricing & Power Purchase ... 14/05/20, 10:28 PM
QUESTION 1 1 points Saved
State whether the given statement is true or false

For the purpose of issue of RFQ minimum conditions to be met by the bidder shall be specified in the
Request for Qualification (RFQ) notice.
1. true
2. false
Select the most appropriate option.

To ensure competitiveness, the minimum number of qualified bidders will be -------.
1. 4
2. 3
3. 2
4. 1

The emphasis on generation capacity addition without any due consideration to T&D System has its own:
a. Dangers b. Benefits c. Risks d. None of these
1. a is correct
2. b is correct
3. c is correct
4. d is correct

All notices shall be deemed delivered upon receipt.
1. true
2. false

Availability Factor or Availability shall have the meaning ascribed thereto in Schedule 7 of this Agreement.
1. true
2. false

If a party does not dispute a monthly bill or a supplementary bill raised by the other party within five (5)
days of receiving it, such bill shall be taken as conclusive.
1. true
2. false

It is a contract involving the generation and sales of electricity – which is normally developed between the
producer and the consumer of the electricity. a. Power Purchase Agreement (PPA) b. Independent Power
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Producers (IPPs) c. Solar Power Purchase Agreement (SPPA) d. None of the above
1. a is correct
2. b is correct
3. c is correct
4. d is correct

No arbitral panel may, either in its initial report or its final report, disclose which panellists are associated
with the majority or minority of the -------. a. Complaints b. Opinion c. Advise d. Request
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The amount of money that a company actually receives during a specific period, excluding discounts and
deductions for returned merchandise is called revenue.
1. true
2. false

The Government of India adopted in 1992 a ------- formula for NTPC stations based on the
recommendations of the KP Rao Committee. a. single-part tariff b. Multi-part tariff c. Transmission tariff d.
Two-part tariff
1. a is correct
2. b is correct
3. c is correct
4. d is correct

If the price of automobiles were to increase substantially, the demand curve for gasoline would most
likely : a. Shift leftward b. Shift rightward c. Become flatter d. Become steeper
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The seller shall notify the procurers in writing at least ------- a month on the progress made in satisfying
the conditions. a. Once b. Twice c. Thrice d. None of the above
1. a is correct
2. b is correct
3. c is correct
4. d is correct

Declared price of land the amount as mentioned in the Request for Proposal (RFP) by the contractors, by
paying which the identified land will be transferred to the seller.
1. true
2. false

The testing and measurement procedures applied during the repeat performance test shall be in
accordance with the codes, practices of procedures as applied for the -------. a. Measurement tests b.
Maintenance tests c. Screening tests d. Performance Tests
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The transmission system in the country consists of the regional networks, the inter-regional connections
that carry electricity across the ------- regions, and the State networks.
1. Ten
2. Fifteen
3. Five
4. Twenty

As the price of a good increases, the change in the quantity demanded can be shown by : a. Shifting the
demand curve leftward b. Shifting the demand curve rightward c. Moving down along the same demand
curve d. Moving up along the same demand curve
1. a is correct
2. b is correct
3. c is correct
4. d is correct
Fit the best option.

Section 62(3) of the Act provides that geographical position of any area could be one of the
criteria for tariff differentiation.

Pricing of transmission services based on average or marginal utilization of the network
branches is known as Average Participation

For financing of future capital cost of projects, a Debt: Equity ratio of ------- should be adopted. a. 70:30
b. 60:40 c. 80:20 d. 30:70 e. 20:80
1. a is correct
2. b is correct
3. c is correct
4. d is correct
5. e is correct

Price denotes the exchange value of a good or service, expressed in terms of Money .

The tariff for transmission is based on cost plus approach and is marked by which of the following
feature? a. Determination of Annual Transmission charges b. Allocating fixed charges among users c.
Annual revenue requirement d. All of the above e. Both a and b
1. a is correct
2. b is correct
3. c is correct
4. d is correct
5. e is correct

If the tariff on computers is not changed, but the government then adds hitherto nonexistent tariffs on
imported semi-conductor components, then the effective rate of protection in the computer industry will
a. Increase b. Decrease c. Remain the same d. Depend on whether computers are PCs or
“Supercomputers" e. None of the above
1. a is correct
2. b is correct
3. c is correct
4. d is correct
5. e is correct

In project development, the seller shall have paid the declared price of the land to the procurers within ---
---- months from signing the agreement a. One b. Two c. Four d. Six
1. a is correct
2. b is correct
3. c is correct
4. d is correct

Normative Availability means equal to ------- Offtake Guarantee in various periods and on annual basis
this should be 80percent.
1. Minimum
2. Maximum
3. Positive
4. Negative

The invalidity or enforceability, for any reason, of any part of the dispute settlement agreement shall not
prejudice or affect the ------- or enforceability of the remainder. a. Reliability b. Validity c. Availability d.
None of the above
1. a is correct
2. b is correct
3. c is correct
4. d is correct

If the contract is terminated on completion of ------- , financial implication in the use of fuel due to non-
conversion of plant should be checked. a. First phase b. Second phase c. Third phase d. Fourth phase
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The benefits of a very detailed tariff schedule include: a. The uniformity of tariffs for all products b. An
increased public awareness of price changes caused by changes in tariffs c. The ability of government to
provide protection on a specific product d. The ability of government to provide a transparent level of
protection for domestic producers
1. a is correct
2. b is correct
3. c is correct
4. d is correct

Which of the following tariff are in practice in India? a. Standard Tariff Model b. Fixed Rate of Return
Model c. Two-Part Tariff Model d. All of the above e. Both a and b
1. a is correct
2. b is correct
3. c is correct
4. d is correct
5. e is correct

Which of the following policies permits a specified quantity of goods to be imported at one tariff rate and
applies a higher tariff rate to imports above this quantity? a. Tariff quota b. Import tariff c. Specific tariff d.
Ad valorem tariff
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The ------- might give a totally distorted picture of deterministic method, which does not take into
account stochastic nature of demand, is adopted, as opposed to the probabilistic method. a. Demand
projection b. Supply projection c. Load projection d. Transmission and distribution projection
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The incentive and disincentive for power generation got linearly linked to the ------- Plant Load Factor
(PLF) of the generating station. a. Weekly b. Monthly c. Quaterly d. Halferly e. Annualy
1. a is correct
2. b is correct
3. c is correct
4. d is correct
5. e is correct
QUESTION 32
QUESTION 32
1 points Saved
The principal benefit of tariff protection goes to: a. Domestic consumers of the good produced b.
Domestic producers of the good produced c. Foreign producers of the good produced d. Foreign
consumers of the good produced
1. a is correct
2. b is correct
3. c is correct
4. d is correct

Ad valorem tariffs are a. Import taxes stated in ads in industry publications b. Import taxes calculated as
a fixed charge for each unit of imported goods c. Import taxes calculated as a fraction of the value of the
imported goods d. The same as import quotas e. None of the above
1. a is correct
2. b is correct
3. c is correct
4. d is correct
5. e is correct

The ------- ratio that indicates the relationship between the external equities or outsiders funds and the
internal equities or shareholders funds. a. Debt-equity b. Working capital c. Return on equity d. Fixed cost
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The #FTB# was defined as a return on the value of the fixed assets of the State Electricity Boards (SEBs)
in service at the beginning of the year. State Governments could also specify a higher rate for the
generation of surplus.
1. Surplus
2. Deficit
3. Reveue
4. Depreciation

The quality of workmanship comprises all ------- needs possession for the various construction a. Basic
b. Required c. Essential d. Compulsory
1. a is correct
2. b is correct
3. c is correct
4. d is correct

A purely competitive market is characterized by few number of buyers and sellers, non-heterogeneous
product, and easy entry and exit.
1. true
2. false
QUESTION 38
QUESTION 38
1 points Saved
The independent engineer certifies that the seller has complied with the requirements of of the Electricity
Act. a. Article 5.1 b. Article 5.2 c. Article 5.3 d. Article 5.4
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The parties shall provide sufficient information as may be reasonably available in order to facilitate the
consultations. Consultations shall be confidential .

The procurer may, at his option, adopt a ------- tender process for medium term procurement, combining
the Request for Proposal (RFP) and Request for Qualification (RFQ) processes.
1. Double stage
2. single stage
3. Three stage
4. Multipart stage

The Power Purchase Agreement (PPA) generally provide for construction of generation plants under the
scheme of Build Own and Operate (BOO) and not under the scheme of Build Own & Transfer (BOT).
Under BOT, there would be the ------- provision for the automatic transfer of assets at the end of the
franchise period (i.e. contract period) which is absent in BOO. a. Implied b. Express c. Automatic d.
Several
1. a is correct
2. b is correct
3. c is correct
4. d is correct

Which of the following Act empowers the Commission to regulate the tariff for generating stations owned
and controlled by the Central Government and also to regulate the tariff of generating companies other
than those owned and controlled by the Central Government, if such generating stations enter into or
otherwise have a composite scheme for generation and sale of electricity to more than one state? a.
Section 70 b. Section 75 c. Section 79 d. Section 85
1. a is correct
2. b is correct
3. c is correct
4. d is correct

Which of the following mandatory functions entrusted by the Electricity Act, 2003 ? a. To specify Grid
Code having regard to Grid Standards b. To specify and enforce the standards with respect to quality,
continuity and reliability of service by licensees c. To fix the trading margin in the inter-State trading of
electricity, if considered, necessary d. To discharge such other functions as may be assigned under the
Act e. All of the above
1. a is correct
2. b is correct
3. c is correct
4. d is correct
5.
e is correct

Power Purchase Agreement (PPA) specifies the type of power plant (whether combined cycle or open
cycle), ambient temperature, atmospheric pressure and power output frequency at which the plant will
operate in a particular -------. It specifies the plant installed capacity to be maintained in that ambient
temperature, pressure and frequency. In the operating mode, it specifies installed base load capacity and
installed peaking capacity. a. Area b. Market c. Locality d. None of the above
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The Bid Process Coordinator (BPC) shall constitute a committee for evaluation of the bids with at least
one member each from Central Electricity Authority (CEA) and the concerned -------. a. Bid Evaluation
Committees b. Regional Power Committees c. Coordinating Committee d. K.P. Rao Committee
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The method that does not necessarily produce a declining pattern of depreciation over an asset's service
life is: a. The double-declining-balance method b. The sum-of-the-years'-digits method c. The units-of-
production method d. All of the above produce a declining pattern
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The Power Purchase Agreement (PPAs) is often regarded as the ------- document in the development of
independent electricity generating assets (power plants). Because it defines the revenue terms for the
project and credit quality, it is key to obtaining non-recourse project financing. a. Primary b. Secondary c.
Central d. Subsidary
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The seller shall have appointed the construction contractors, if seller itself is not the construction
contractor, for the design, engineering, procurement, construction and commissioning of the project and
shall have submitted a documentary proof along with the copy of the contract to the
procurers.

The PPAs generally provide for construction of generation plants under the scheme of Build Own and
Operate (BOO) and not under the scheme of Build Own & Transfer (BOT). Under BOT, there would be the
express provision for the automatic transfer of assets at the end of the ------- period (i.e. contract period)
which is absent in BOO. a. Probationary b. Recession c. Franchise d. Recovery

1. a is correct
2. b is correct
3. c is correct
4. d is correct

Cost estimates in respect of land, plant and machinery,development cost including third party charges,
spare parts and on-construction cost are examined under: a. Project cost and Financing Arrangement b.
Fuel Management c. Billing Procedure d. Tariff Procedure
1. a is correct
2. b is correct
3. c is correct
4. d is correct

When a government allows raw materials and other intermediate products to enter a country duty free, its
tariff policy generally results in a (an): a. Effective tariff rate less than the nominal tariff rate b. Nominal
tariff rate less than the effective tariff rate c. Rise in both nominal and effective tariff rates d. Fall in both
nominal and effective tariff rates
1. a is correct
2. b is correct
3. c is correct
4. d is correct

"But adopting fixed exchange rates entails a steep price, namely, that the government is prohibited from
using ------- to fight slumps. The upshot is a neat illustration of the "no-free-lunch" maxim so beloved by
economists." The blank is best filled in with a. Fiscal policy b. Tariff policy c. Monetary policy d. Supply-
side policy
1. a is correct
2. b is correct
3. c is correct
4. d is correct

A time of day shall in Electricity Act, save as otherwise provided in any agreement or document be
construed as a reference to: a. Greenwich Meridian Time b. Greenwich Mean Time c. Indian saved Time
d. Indian Standard Time
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The seller shall at all times keep the procurers informed ofthe available capacity of a unit and/or (if the
power station has been commissioned) the power station as a whole, and any impairment of its
contracted operating characteristics in accordance with Schedule 6 of the Electricity Act. a. Shedule 4 b.
Scedule 5 c. Schedule 6 d. Schedule7
1. a is correct
2. b is correct
3. c is correct
4. d is correct

Where there is disagreement as to the existence or consistency with the dispute settlement agreement, of
measures taken within the reasonable period of time to comply with the decision of the arbitral panel,
such dispute shall be decided through recourse to the dispute settlement procedures, including wherever
possible by resorting to the original arbitral panel.
1. true
2. false

Which of the following can be said about a monopoly? a. Monopolies are always inefficient and are
therefore the least desirable form of market b. They can cause a shift in the demand curve to benefit
society c. They may aid in innovation d. All of the above are correct
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The provisions under article 12 (Force Majeure), article 15 (Liability and Indemnification), article 17
(Governing Law and Dispute Resolution), article 14 (Events of Default and Termination), and article 18
(Miscellaneous Provisions) shall ------- and survive any expiry or termination of the dispute settlement
agreement. a. Continue b. Stay c. Fix d. Level
1. a is correct
2. b is correct
3. c is correct
4. d is correct

What is required to be made for buying out which might involve greater risk financially in absence of any
express provision in the contract, at the end of franchise period ? A. Renegotation b. Negotation c.
Generation d. Regeneration
1. a is correct
2. b is correct
3. c is correct
4. d is correct

Which cost elements are taken into consideration for tariff calculation? a. The elements of cost in
Capacity Payment and in Energy Payment and assumption made in calculation of tariff b. Formulae
(generally in the Schedule of the Power Purchase Agreement ) adopted to calculate the Capacity
Payment and Energy Payment to find out elements of price escalation due in labour and material, tax
incremental charges and various elements that constitute the tariff c. Fixed costs, Operation and
Maintenance costs and Variable costs contemplated in tariff and price escalation allowed therein d. All of
the above e. None of the above
1. a is correct
2. b is correct
3. c is correct
4. d is correct
5. e is correct

The seller and procurer each affirm that: a. Either it or its respective directors, employees, or agents has
paid or undertaken to pay or shall in the future pay any unlawful commission, bribe, pay-off or kick-back
b. Neither it nor its respective directors, employees, or agents has paid or undertaken to pay or shall in
the future pay any lawful commission, bribe, pay-off or kick-back c. Either it or its respective directors,
employees, or agents has not paid or undertaken to pay or shall in the future pay any unlawful
commission, bribe, pay-off or kick-back d. Neither it nor its respective directors, employees, or agents
has paid or undertaken to pay or shall in the future pay any unlawful commission, bribe, pay-off or kick-
back
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The Two Part Tariff Model is derived from the capital cost of the project and the cost of financing the
project, and is essentially a cost plus approach, which involves no risks for the Independent Power
Producers (IPPs). This approach encourages the IPPs to inflate their costs, as this would finally get
translated into -------.This tariff prescribes certain per cent rate of Return on Equity (ROE) at certain per
cent of Plant Load Factor (PLF) with additional incentives for each per cent point of additional PLF. a.
Lower tariff b. Medium tariff c. Higher tariff d. None of the above
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The PPAs provide for dispute resolution through: a. A panel consisting of one or two high level
representative(s) failing which through arbitrators and experts who are either Indian or foreigners and
such disputes would be settled in a place either in India or abroad b. A panel consisting of one or two
high level representative(s) failing which through arbitrators and experts who foreigners and such
disputes would be settled in a place either in India or abroad c. A panel consisting of one or two high
level representative(s) failing which through arbitrators and experts who are either Indian or foreigners and
such disputes would be settled in India d. All of the above
1. a is correct
2. b is correct
3. c is correct
4. d is correct

In the case of distributed generation (where the generator is located on a building site and energy is sold
to the building occupant), commercial PPAs (Power Purchase Agreements) have evolved as a variant that:
a. Enables businesses, schools, and governments to purchase electricity directly from the generator
rather than from the utility b. Enables businesses, schools, and governments to purchase electricity
directly from the distributor rather than from the utility c. Enables businesses, schools, and governments
to purchase electricity directly from the generator d. Enables businesses, schools, and governments to
purchase electricity directly from the than from the utility
1. a is correct
2. b is correct
3. c is correct
4. d is correct
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Hemant Bhatnagar
My Institution Courses Community Services
H My Assignments Take Test: MDSP812D-Power Pricing & Power Purchase Agreement-Jan 20-Assignment2 ?
Sem3.Power
Pricing
&
Take Test: MDSP812D-Power Pricing & Power Purchase Agreement-Jan
Power
Purchase
20-Assignment2
Agreement
Test Information
Description
Instructions Center for Continuing Education - UPES
Power Pricing & Power Purchase Agreement
Assignment 2
Total Questions: 56
Total Marks: 100
Assignment Information :
The examination will consist of only Objective type (multiple choice) questions requiring candidates to Mouse-click their correct
choice of alternatives against the related question number. The questions would carry 1 to 5 marks each depending on the difficulty
level of the question as indicated in the table below:
Difficulty Level of Questions:
1 Mark - Direct, Memory based

2 Marks - Memory & Conceptual
3 Marks - Conceptual & Analytical
4 Marks - Analytical based on understanding of concepts
5 Marks - Application based on understanding of concepts
The question paper will be for 100 marks and considering marks allotted to each question, the total number of questions
would be around 56.
There will not be negative marking for wrong answers.
In case candidate does not want to attempt the question he I she should not mouse-click any option.
The students are allowed to save the responses and come back later to resume, complete and "Save and Submit" the
assignment. However, if the Due Date has expired, then the assignment will not be accessible and will be marked as zero.
In such cases, the student can re-attempt the assignment allocated after enrolling in the subsequent Semester.
Once submitted, that answer sheet cannot be retreieved for any editing. The student has to initiate a new attempt (if
allowed), if he has submitted the assignment by mistake.
The students are normally allowed 3 chances to attempt and submit the assignment. The number of attempts availed is
displayed under the "Test Information".
The Highest Grade of the 3 attempts shall be considered for grading.
The assignments are auto evaluated, and hence no chance of re-evaluation/re-totalling is allowed to the student.
Multiple This Test allows 3 attempts. This is attempt number 1.

Attempts
Force This Test can be saved and resumed later.
Completion
Question Completion Status:
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40
41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56

The project site shall be transferred to the successful bidder at a -------. It is recommended that the procurer
should obtain the transmission clearances necessary for receiving power at the delivery points prior to inviting
bids. However, this shall not be a binding condition for the -------. Unless otherwise specified in the bid
documents, it shall be the responsibility of the selected bidder to obtain transmission linkage for evacuation
and Interstate transmission of power (where applicable). a. Declared price, bid process b. Lower price, bid
invitation c. Higher price, bid documentation d. Fixed price, bid transmission e. Flexible price, bid delivery
1. a is correct
2. b is correct
3. c is correct
4. d is correct
5. e is correct

Which of the following statement does not comes under the mandatory functions of Central Electricity
Regulatory Commission (CERC)? a. To regulate the tariff of generating companies owned or controlled by the
Central Government b. To issue licences to persons to function as transmission licensee and electricity trader
with respect to their inter-State operations c. To specify and enforce the standards with respect to quality,
continuity and reliability of service by licensees d. To fix the trading margin in the inter-State trading of
electricity, if considered, necessary e. Promotion of competition, efficiency and economy in the activities of
the electricity industry
1. a is correct
2. b is correct
3. c is correct
4. d is correct
5. e is correct

When can the seller may only effect the insurances covering different risks, deductibles, endorsements, co-
insured(s) or other terms different to those referred to in the article 10 of the Electricity Act? a. With the prior
written consent of the each of the procurers' which consent shall not be unreasonably withheld or delayed b.
After the consent of the each of the procurers' which consent shall not be unreasonably withheld or delayed
c. With the prior written consent of the each of the procurers' which consent shall be reasonably withheld or
delayed d. All of the above
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The security deposit as submitted by seller in accordance with Article 3.4 of Project Development Agreement,
shall be released by the procurers within ------- from the schedule commercial operation date of the station, if
the seller meets the schedule commercial operation date and satisfactorily fulfils the obligations of
commencement of commercial operation and in the event of delay the security deposit amount, if any, which
remain unadjusted under Article 3.4 shall be released to the procurer after the satisfactory completion of the
obligations of commencement of commercial operation. a. 10 days b. 15 days c. 25 days d. 30 days
1. a is correct
2. b is correct
3. c is correct
4. d is correct

When the production of a commodity does not utilize imported inputs, the effective tariff rate on the
commodity: a. Exceeds the nominal tariff rate on the commodity b. Equals the nominal tariff rate on the
commodity c. Is less than the nominal tariff rate on the commodity d. None of the above
1. a is correct
2. b is correct
3. c is correct
4. d is correct

If the price of the fuel has not been determined by the Government of India, government approved
mechanism or the Fuel Regulator; the same shall have to be approved by the appropriate Regulatory
Commission.
1. true
2. false

Reduction in price means increase in revenue for the existing firm and resultant decline in profit.
1. true
2. false

The transmission system in the country consists of the regional networks, the inter-regional connections that
carry electricity across the ------- regions, and the State networks.
1. Ten
2. Fifteen
3. Five
4. Twenty

The Force Majeure clauses are not provided to cover political risks, natural risks and industrial/operational
risks.
1. true
2. false

A power purchase agreement (PPA) is a legal contract between power purchaser ans power trader.
1. true
2. false

The seller shall give the procurers and the independent engineer not less than ten (10) days prior written
notice of each commissioning test.
1. true
2. false

A competitive equilibrium is described by : a. A price only b. A quantity only c. The excess supply minus the
excess demand d. A price and a quantity
1. a is correct
2. b is correct
3. c is correct
4. d is correct

If price is initially above the equilibrium level -------. a. The supply curve will shift rightward b. The supply
curve will shift leftward c. Excess supply exists d. All firms can sell as much as they want
1. a is correct
2. b is correct
3. c is correct
4. d is correct

A work related clause, rarely used, doesn't requires an act of negligence or omission. It only depends on
whether the work was being performed by the ------- a. Contractor b. Subcontractor c. Indemnitor d.
Indemnitee
1. a is correct
2. b is correct
3. c is correct
4. d is correct

Which of the following would NOT improve the current ratio? a. Borrow short term to finance additional fixed
assets b. Issue long-term debt to buy inventory c. Sell common stock to reduce current liabilities d. Sell fixed
assets to reduce accounts payable
1. a is correct
2. b is correct
3. c is correct
4. d is correct

When a monopolist engages in perfect price discrimination? a. The marginal revenue curve lies below the
demand curve b. The demand curve and the marginal revenue curve are identical c. Marginal cost becomes
zero d. The marginal revenue curve becomes horizontal
1. a is correct
2. b is correct
3. c is correct
4. d is correct

Under Broad Form Indemnity clause, the indemnitor is responsible for his own negligence as well as the
negligence of a third party. This means that the indemnitor may be liable for the sole ------- of the indemnitee.
a. Negligence b. Ignorance c. Avoidance d. Interferance
1. a is correct
2. b is correct
3. c is correct
4. d is correct

Agreement or Power Purchase Agreement means this document including its Schedules containing the terms
and conditions for purchase of ------- by Procurer. a. Electricity b. Water c. Raw material d. Power
1. a is correct
2. b is correct
3. c is correct
4. d is correct
QUESTION 19

The mode of selection of the party for arbitration and the Law of the country should be examined by which the
arbitration process will be -------. A. Ruled b. Maintained c. Executed d. Governed
1. a is correct
2. b is correct
3. c is correct
4. d is correct

Suppose an importer of steel is required to pay a tariff of $20 per ton plus 5 percent of the value of steel. This
is an example of a (an): a. Specific tariff b. Ad valorem tariff c. Compound tariff d. Tariff quota
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The parties acknowledge that a ------- of any of the obligations contained in the dispute settlement agreement
would result in injuries. a. Breach b. Ignorance c. Negligence d. Disobedience
1. a is correct
2. b is correct
3. c is correct
4. d is correct

If the seller is affected by a change in law in accordance with article 13.2 of the Electricity Act and wishes to
claim a change in law under this article, it shall give notice to the buyers of such change in law as soon as
reasonably practicable after becoming aware of the same.
1. true
2. false

Section 63 of the Act seeks to move away from regulated tariff to tariff determination through
bidding process.

Cost of fuel is ------- linked to escalation and any risk of exchange rate variation has to be borne by the Buyer
of Power (BOP). A. Inversly b. Proportionally c. Directly d. Indirectly
1. a is correct
2. b is correct
3. c is correct
4. d is correct

Article 16.1 of indemnity does apply to liens arising by operation of law (or by an agreement evidencing the
same) in the ordinary course of the seller carrying out the project.
1. true
2. false
QUESTION 26
QUESTION 26
1 points Saved
Common energy source in Indian villages is: a. Electricity b. Coal c. Sun d. Wood and animal dung
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The word "despatch" refers to: a. To transact or dispose of (a matter) promptly or speedily b. To transact or
dispose of (a matter) slowly and steadily c. To transact or dispose of (a matter) weekly d. To transact or
dispose of (a matter) monthly
1. a is correct
2. b is correct
3. c is correct
4. d is correct

Procurer shall remit all amounts due under a supplementary bill raised by the seller to the seller's designated
account by the due date and notify the seller of such remittance on the same day.
1. true
2. false

The fact that there are very different tariffs on different products is known as: a. The structure of protection b.
Public choice c. Positive choice d. Rent seeking
1. a is correct
2. b is correct
3. c is correct
4. d is correct

A "crore" means a reference to a. One million b. Ten million c. Fifty million d. Hundred million
1. a is correct
2. b is correct
3. c is correct
4. d is correct

As the price of a good increases, the change in the quantity demanded can be shown by : a. Shifting the
demand curve leftward b. Shifting the demand curve rightward c. Moving down along the same demand
curve d. Moving up along the same demand curve
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The procurer may, at his option, adopt a ------- tender process for medium term procurement, combining the
Request for Proposal (RFP) and Request for Qualification (RFQ) processes.
1. Double stage
2. single stage
3. Three stage
4. Multipart stage

Variable charges represent the fuel charges for thermal generating stations and are corrected
for fuel price variation as per monthly weighted average price and heat value of fuel.

The #FTB# was defined as a return on the value of the fixed assets of the State Electricity Boards (SEBs) in
service at the beginning of the year. State Governments could also specify a higher rate for the generation of
surplus.
1. Surplus
2. Deficit
3. Reveue
4. Depreciation

Indemnity includes an understanding that an injured party has a right to claim reimbursement or
compensation for a loss or damage against the person who has the -------. a. Right b. Duty c. Obligation d.
Consent
1. a is correct
2. b is correct
3. c is correct
4. d is correct

If the tariff on computers is not changed, but the government then adds hitherto nonexistent tariffs on
imported semi-conductor components, then the effective rate of protection in the computer industry will a.
Increase b. Decrease c. Remain the same d. Depend on whether computers are PCs or “Supercomputers" e.
None of the above
1. a is correct
2. b is correct
3. c is correct
4. d is correct
5. e is correct

Besides equitability of Liqudated Damage (LD) clauses, we should examine the quantum of damage fixed for
both sides in the event of failure in respect of -------. a. The conditions precedent the developmental stages b.
Developmental stages c. Construction period d. Testing and commissioning of the plant e. All of the above
1. a is correct
2. b is correct
3. c is correct
4. d is correct
5. e is correct

Policies typically required under Power Purchase Agreement (PPA's) are: a. Commercial general Liability
Insurance b. Worker's compensation insurance for seller's employees c. Automobile liability Insurance d. All
risk property Insurance e. All of the above
1. a is correct
2. b is correct
3. c is correct
4. d is correct
5. e is correct

The parties shall comply with the dispatch procedures, which should be mutually agreed among parties no
later than 60 days before the scheduled commercial operation date of the first unit. The dispatch procedures
to be agreed to shall at all times be ------- with the applicable laws including grid code. a. Consistent b.
Honest c. Existent d. Continuous
1. a is correct
2. b is correct
3. c is correct
4. d is correct

Suppose the demand curve for a good shifts rightward, causing the equilibrium price to increase. This
increase in the price of the good results in -------. a. A rightward shift of the supply curve b. An increase in
quantity supplied c. A leftward shift of the supply curve d. A leftward movement along the supply curve
1. a is correct
2. b is correct
3. c is correct
4. d is correct

Government prohibition of advertising liquor on television would most likely result in -------. a. A rightward
shift in the demand curve for liquor b. A leftward shift in the demand curve for liquor c. A rightward shift in the
demand curve for television advertising time d. No change in the market for either liquor or television
advertising
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The procurers shall prepare and submit to the Seller a monthly progress report, in the ------- , which reviews
the progress of the design, engineering, procurement, construction and installation of the interconnection and
transmission facilities. a. Index form b. Attestation form c. Application form d. Agreed form
1. a is correct
2. b is correct
3. c is correct
4. d is correct

What is collateral arrangement? a. It is a combination of escrow agreement and the security agreement b. It is
a combination of implied agreement and the express agreement c. It is the other name of security agreement
d. It is an arrangement between the sellers and the procurers
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The procurer shall remit the amount payable under monthly bill on the due date to such account of the seller,
as shall have been previously notified by the seller to procurer in accordance with article 11.3.3 of the
Electricity Act.
1. true
2. false

Which of the following would be consistent with a more aggressive approach to financing working capital? a.
Financing short-term needs with short-term funds b. Financing permanent inventory buildup with long-term
debt c. Financing seasonal needs with short-term funds d. Financing some long-term needs with short-term
funds
1. a is correct
2. b is correct
3. c is correct
4. d is correct

A typical Power Purchase Agreement (PPA's) may contain which of the following? a. Commissioning and entry
into commercial service b. Plant operation, maintenance and fuel management c. Dedication of capacity,
availability declaration d. Measurement of capacity, availability and energy metering e. All of the above
1. a is correct
2. b is correct
3. c is correct
4. d is correct
5. e is correct

The seller shall effect and maintain or cause to be effected and maintained during the construction period
insurances against such risks, with such ------- and with such endorsements and co-insured(s) as are to be
specified in Article 1 of Schedule 13 of the Electricity Act by the parties a. Exemptions b. Deductibles c.
Additions d. Adjustments
1. a is correct
2. b is correct
3. c is correct
4. d is correct

Businesses that offer somewhat dangerous activities to the public require that the members of the public sign
an indemnity agreement releasing the business from liability in case of an accident. In reality, if the business is
found to be negligent (faulty equipment, poor maintenance), the individual who was injured still has a claim
against the -------. a. Third party b. Seller c. Procurer d. Company
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The Power Purchase Agreement (PPA) provide for dispute resolution through a Panel consisting of ------- high
level representative(s) failing which through Arbitrators and Experts who are either Indian or foreigners and
such disputes would be settled in a place either in India or abroad. a. One or two b. Three or four c. Two or
four d. Four or five
1. a is correct
2. b is correct
3. c is correct
4. d is correct
QUESTION 50

The ------- is derived from the capital cost of the project and the cost of financing the project, and is
essentially a cost plus approach, which involves no risks for the Independent Power Producers (IPP's). a.
Fixed Rate of Return Model b. Two-Part Tariff Model c. Fixed Cost Model d. Single Tariff Model
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The seller may retake the performance test, up to five (5) times, during a period of ninety days ("Initial
Performance Retest Period") from a unit's or if the power station has been commissioned, the power station's
commissioning date in order to demonstrate an ------- tested capacity a. Increased b. Decreased c. Intake d.
Outake
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The provisions under article 12 (Force Majeure), article 15 (Liability and Indemnification), article 17 (Governing
Law and Dispute Resolution), article 14 (Events of Default and Termination), and article 18 (Miscellaneous
Provisions) shall ------- and survive any expiry or termination of the dispute settlement agreement. a. Continue
b. Stay c. Fix d. Level
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The coordinating committee shall have which of the following option? a. By written agreement between the
members of the coordinating committee, to co-opt any other member(s) from relevant bodies such as lenders
(or any agent, trustee or representative acting on their behalf) b. By mutual agreement between the members
of the organising committee, to co-opt any other member(s) from relevant bodies such as lenders (or any
agent, trustee or representative acting on their behalf) c. By mutual consent between the members of the
coordinating committee, to co-opt any other member(s) from relevant bodies such as lenders (or any agent,
trustee or representative acting on their behalf) d. By mutual agreement between the members of the
coordinating committee, to co-opt any other member(s) from relevant bodies such as lenders (or any agent,
trustee or representative acting on their behalf)
1. a is correct
2. b is correct
3. c is correct
4. d is correct

There may be wide variation between actual generation and the projected peak demand due to wrong
assumptions in forecasting the demand projection, such as, ------- . The demand projection might give a
totally distorted picture of deterministic method, which does not take into account stochastic nature of
demand, is adopted, as opposed to the probabilistic method. Hence, the question needs to be addressed as
to what extent capacity addition would be necessary in view of the actual demand position in existence and
the rise in future. a. Peak Load Factor b. High Load Factor c. Plant Load Factor d. Low Load Factor
1. a is correct
2. b is correct
3. c is correct
4. d is correct

The Acme Oil Company is a vertically integrated firm. It explores for and extracts crude oil. It also refines the
crude oil into gasoline and other products, and sells these products to consumers. There are many other firms
that extract and sell crude oil so that the market for crude oil is regarded by Acme Oil as competitive. The
internal price that Acme Oil uses when the crude oil that it extracts is "sold" to one of its refineries: a. Equals
the market price for crude oil b. Equals the market price for crude oil less a discount because Acme Oil does
not to profit from itself c. Is unrelated to the market price of crude oil d. Is greater than the marginal cost of
extracting crude oil
1. a is correct
2. b is correct
3. c is correct
4. d is correct

Which of the following statement is true? a. The project site shall be transferred to the successful bidder at a
declared price. It is recommended that the procurer should obtain the transmission clearances necessary for
receiving power at the delivery points prior to inviting bids b. In case of medium term procurement with
specific fuel allocation, the procurer shall invite bids on the basis of capacity charge and net quoted heat rate.
The net heat rate shall be ex-bus taking into account internal power consumption of the power station c. In
case of long term procurement the procurer may, at his option, permit bids on a single part basis, and the
same shall be clearly specified in the Request for Qualification (RFQ)/Request for Proposal (RFP) d. The
capacity component of tariffs may not feature separate non-escalable (fixed) and escalable (indexed)
components. The indices to be adopted for escalation of the escalable component shall only be Wholesale
Price Index (WPI) or Consumer Price Index (CPI) and the Base year shall be specified in the bid document e.
None of the above
1. a is correct
2. b is correct
3. c is correct
4. d is correct
5. e is correct
Save All Answers Save and Submit
QUESTION 1
1. Select the most appropriate option.
The amount of -------l energy something uses to do a job depends on how long it’s used and is
measured in watt-hours (W-h). It is calculated by multiplying the electrical power (Watts) the
device requires by the amount of time it was used. A watt-hour is a very small amount of
electrical energy, so most of the time kilowatt-hours (kWh) are used (1 kWh = 1,000 W-h). Most
utility companies bill their customers based on the number of kWh of electrical energy
consumed. a. Electrical b. Solar c. Renewable d. Nonrenewable e. Fossil
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
5.
e is correct
3 points
QUESTION 2
A repeat performance test shall be concluded when the procurers receive the ------- of the
monitoring engineer stating that the repeat performance test has been carried out in accordance
with schedule 5 of the Electricity Act and certified the Unit's or (if the power station has been
commissioned), the power station's current tested capacity as demonstrated by the results of the
repeat performance test. a. Final test certificate b. Initial test certificate c. Project test certificate
d. None of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
3 points
QUESTION 3
The overall power situation of a State vis-a-vis the existing installed capacity, actual generation
of power, actual delivery of power at the bus bar and T&D loss should be looked into. If the gap
is ------- between the actual generation and the demand projection at the bus bar, it can possibly
be met by upgrading the existing installed capacity or by increasing the capacity of the existing
system by proper maintenance or by minimizing the T&D loss. a. Narrow b. Broad c. Wide d.
Small
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
3 points
QUESTION 4
Which of the following non-conventional sources of energy is important? a. The non-
conventional sources of energy are abundant in nature. According to energy experts the non-
conventional energy potential of India is estimated at about 95,000 MW b. These are renewable
resources. The non-conventional sources of energy can be renewed with minimum effort and
money c. Non-conventional sources of energy are pollution-free and eco-friendly d. Both a and b
e. All of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
5.
e is correct
3 points
QUESTION 5
Maintenance Outage means: a. An interruption or reduction of the generating capacity of the
Power Station b. Gross Power Station maximum continuous rating c. Guarantee offtake of
65percent of the total contracted capacity for all Procures taken together during a contract years
d. The heat energy input to the Project in terms of Gross Calorific Value, to deliver one (1) kWh
Energy Output at the Delivery Point e. The test of a Unit's rated capacity and after
commissioning of the Power Station, of the Power Station's rated capacity as a whole carried out
in accordance with Article 1.2 of Schedule 5 of the Agreement
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
5.
e is correct
4 points
QUESTION 6
Which of the following eligibility criteria match with Non-fossil fuel based co-generation
project? a. Topping cycle- Facility with sum of useful power output and one half the useful
thermal output be greater than 45percent of the facility’s energy consumption, during season b.
Plant based on Rankine cycle technology and using the fuel sources, provided use of fossil fuel is
restricted only to 15percent of total fuel consumption on annual basis c. Installed capacity to be
lower than or equal to 25 MW at single location d. Located at sites having minimum annual
mean Wind Power Density (WPD) of 200 Watt/m2 e. Based on Technologies approved by
MNRE
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
4 points
QUESTION 7
Regulation 17.6.1 of Multi-year Tariff (MYT), does not stipulates which of the following factor
as Controllable factors? a. Economy-wide influences, such as unforeseen changes in inflation
rate, market-interest rates, taxes and statutory levies b. Technical & Commercial Losses
including bad debts c. Consumer Mix in case of presence of more than one Distribution licensee
within a area and availing open access by existing consumer d. Working Capital Requirements e.
Capital Expenditure on account of time and/or cost overruns/efficiencies in the implementation
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
4 points
QUESTION 8
The #FTB# can give subsidy to the extent they consider appropriate as per the provisions of
section 65 of the Act. Direct subsidy is a better way to support the poorer categories of
consumers than the mechanism of cross-subsidizing the tariff across the board. Subsidies should
to be targeted effectively and in transparent manner. As a substitute of cross-subsidies, the State
Government has the option of raising resources through mechanism of electricity duty and giving
direct subsidies to only needy consumers. a. State Government b. Central Government c. Central
and State Government d. National Electricity Policy
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
4 points
QUESTION 9
If the arbitral panel established under article 15 of the dispute settlement agreement, finds that
the measure of the party concerned is not in compliance with final report of the arbitral panel
under article 14, the party concerned, if so requested by the complaining party, shall immediately
enter into negotiations with the complaining party with a view to reaching a mutually acceptable
compensation or solution. If no mutually acceptable compensation or solution has been reached
within 15 days after the request of the complaining party to enter into negotiations, the
complaining party may suspend the application of benefits of equivalent effect to the ------- . a.
Affected party b. Third party c. Responding party d. Accused party
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
4 points
QUESTION 10
Tariff components of cost are scrutinized and tariff is set in such a way as to enable ------- cost
based on norms specified. a. Average b. Fixed c. Variable d. Recovery
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 11
According to the Electricity Act, the metering system shall be the joint property of the procurers
and the procurers shall be jointly responsible for the cost of its maintenance, replacement and ----
---. a. Repair b. Installation c. Calibration d. Rectification
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 12
What is the accumulated deprecation? a. Sum of all depreciation expenses of a fixed asset b.
Depreciation expenses c. Cost of depletion of assets d. Future value of fixed asset
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 13
1. State whether the given statement is true or false
An electricity market is a system for effecting purchases, through bids to buy; sales, through
offers to sell; and short-term trades, generally in the form of financial or obligation swaps.
1.
true
2.
false
1 points
QUESTION 14
A Repeat Performance Test shall be carried out in accordance with article 1.2 of schedule 5 of
the Electricity Act, save that the test shall last twenty-four (24) hours instead of ------- hours. a.
Thirty six b. Forty eight c. Seventy two d. Ninety six
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 15
The arbitral panel shall present a ------- report to the parties, including any separate opinions on
matters not unanimously agreed, within 30 days of presentation of the initial report, unless the
parties otherwise agree. a. Interium b. Initial c. Final d. Progress
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 16
If there are two phases, type of fuel to be used in the first phase and whether on completion of
second phase, the whole plant will be converted into: a. Different type of fuel-fired plant b.
Unique type of fuel-fired plant c. Same type of fuel-fired plant d. All of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 17
A ------- by a party shall be in writing and executed by an authorized representative of that party.
a. Document b. Letter c. Waiver d. Notice
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 18
1. Fit the best option.
average
Pricing of transmission services based on or marginal utilization of the network
branches is known as Average Participation
1 points
QUESTION 19
Direct labour cost includes -------. a. The wages directly paid to working staff b. The
expenditures for raw and semi-finished materials c. The direct or indirect expenses on production
d. The expenses on marketing and administrative functions
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 20
The seller under the Power Purchase Agreement (PPA) is typically an------- power producer. a.
Independent b. Dependent c. Interdependent d. None of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 21
Which of the following tariff are in practice in India? a. Standard Tariff Model b. Fixed Rate of
Return Model c. Two-Part Tariff Model d. All of the above e. Both a and b
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
5.
e is correct
1 points
QUESTION 22
change
A in demand and supply generally brings about change in price.
1 points
QUESTION 23
A Law shall be construed as a reference to such Law including its amendments or re-enactments
from time to time.
1.
true
2.
false
1 points
QUESTION 24
poorer
Direct subsidy is a better way to support the categories of consumers than the
mechanism of cross-subsidizing the tariff across the board.
1 points
QUESTION 25
thermal
Variable charges represent the fuel charges for generating stations and are
corrected for fuel price variation as per monthly weighted average price and heat value of fuel.
1 points
QUESTION 26
Activities involved in construction are called -------. a. Development activities b. Maintenance
activities c. Inspection activities d. Construction activities
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 27
The Force Majeure clauses are not provided to cover political risks, natural risks and
industrial/operational risks.
1.
true
2.
false
1 points
QUESTION 28
Increase or decrease in taxes applicable on fuel shall be directly linked to the -------. a. Eletricity
charges b. Fuel charges c. Power charges d. Energy charges
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 29
The ------- ratio that indicates the relationship between the external equities or outsiders funds
and the internal equities or shareholders funds. a. Debt-equity b. Working capital c. Return on
equity d. Fixed cost
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 30
Specific tariffs are a. Import taxes stated in specific legal statutes b. Import taxes calculated as a
fixed charge for each unit of imported goods c. Import taxes calculated as a fraction of the value
of the imported goods d. The same as import quotas e. None of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
5.
e is correct
1 points
QUESTION 31
The language of the dispute settlement agreement and all written communication between the
English
parties relating to this agreement shall be in .
1 points
QUESTION 32
A work related clause, rarely used, doesn't requires an act of negligence or omission. It only
depends on whether the work was being performed by the ------- a. Contractor b. Subcontractor
c. Indemnitor d. Indemnitee
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 33
The Appropriate Commission shall within 7 days of passing the order send a copy of the order to
the Appropriate Government, to the Authority and the concerned licensee and to the concerned
person.
1.
true
2.
false
1 points
QUESTION 34
Ratio of minimum and maximum capacity charge for any year shall not be less than 5percent to
avoid excessive front loading or back loading during the period of contract.
1.
true
2.
false
1 points
QUESTION 35
C entral
The Government has issued detailed guidelines for tariff-based bidding process for
procurement of electricity by distribution licensees.
1 points
QUESTION 36
The variable charges for thermal stations are payable based on norms of operation. These norms
of operation includes -------. a. Station efficiency in terms of heat rate b. Specific fuel oil
consumption c. Auxiliary energy consumption d. All of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 37
When the production of a commodity does not utilize imported inputs, the effective tariff rate on
the commodity: a. Exceeds the nominal tariff rate on the commodity b. Equals the nominal tariff
rate on the commodity c. Is less than the nominal tariff rate on the commodity d. None of the
above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 38
The ------- tariff for a station was calculated to cover the fixed cost as well as the variable cost at
a certain (normative) generation level. a. single-part tariff b. Multi-part tariff c. Transmission
tariff d. Two-part tariff
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 39
If the norm of the ------- ratio is prescribed by the Government, we should examine whether it
has been maintained or not. a. Current b. Quick c. Solvency d. Debt equity
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 40
RLDC means the relevant Regional Load Despatch Centre as defined in the ------- , in the region
in which the Project is located. A. Labour laws b. Consumer laws c. Power laws d. Electricity
laws
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 41
The date of establishment of the arbitral panel shall be the date on which the chair is appointed,
or in the case of sole arbitrator on the date of ------- of time frame. a. Commencement b.
Registration c. Expiry d. Conclusion
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 42
All notices shall be deemed delivered upon receipt.
1.
true
2.
false
1 points
QUESTION 43
All costs relating to opening and maintenance of the letter of credit shall be borne by the ------- .
a. Seller b. Procurer c. Insurer d. Creditor
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 44
The Power Purchase Agreement (PPAs) does not become effective unless the conditions
precedent to its effectiveness are fulfilled or waived by the parties, either mutually or by
themselves in the manner provided in the PPA.
1.
true
2.
false
1 points
QUESTION 45
The #FTB# was defined as a return on the value of the fixed assets of the State Electricity Boards
(SEBs) in service at the beginning of the year. State Governments could also specify a higher
rate for the generation of surplus.
1.
Surplus
2.
Deficit
3.
Reveue
4.
Depreciation
1 points
QUESTION 46
Metering
The procurers shall jointly inspect and if necessary, recalibrate the system on a
regular basis but in any event, at least once every three (3) months.
1 points
QUESTION 47
A power purchase agreement (PPA) is a contract involving the generation and sales of electricity
producer
– which is normally developed between the and the consumer of the electricity.
1 points
QUESTION 48
geographical
Section 62(3) of the Act provides that position of any area could be one of the
criteria for tariff differentiation.
1 points
QUESTION 49
pro rata
The cost of each line is allocated to the different agents according to their total
participation in the corresponding line.
1 points
QUESTION 50
The power purchase agreement (PPA) are basically "take or pay" contracts which means
payment will have to be made to the Independent Power Producers (IPPs) on created capacity or
deemed generation and not on actual power generated and delivered to the Buyer of Power
(BOP) system (i.e. whether BOP takes power or not, payment will have to be made).
1.
true
2.
false
2 points
QUESTION 51
Besides equitability of Liqudated Damage (LD) clauses, we should examine the quantum of
damage fixed for both sides in the event of failure in respect of -------. a. The conditions
precedent the developmental stages b. Developmental stages c. Construction period d. Testing
and commissioning of the plant e. All of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
5.
e is correct
2 points
QUESTION 52
Any request, notice, written submissions or other document shall be delivered by either party or
the arbitral panel by delivery against receipt, registered post, courier, facsimile transmission,
telex, telegram or any other means of ------- that provides a record of the sending thereof. a.
Transport b. Communication c. Telecommunication d. None of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 53
Businesses that offer somewhat dangerous activities to the public require that the members of the
public sign an indemnity agreement releasing the business from liability in case of an accident.
In reality, if the business is found to be negligent (faulty equipment, poor maintenance), the
individual who was injured still has a claim against the -------. a. Third party b. Seller c. Procurer
d. Company
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 54
The seller shall have appointed the construction contractors, if seller itself is not the construction
contractor, for the design, engineering, procurement, construction and commissioning of the
documentary
project and shall have submitted a proof along with the copy of the contract to the
procurers.
2 points
QUESTION 55
The results of the characteristics test show that the unit, or in the case the power station has been
commissioned, the power station is capable of operating in accordance with its -------. a.
Contracted Contractual Characterstics b. Contracted Consent Characterstics c. Contracted Casual
Characterstics d. Contracted Operating Characteristics
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 56
What is required to be made for buying out which might involve greater risk financially in
absence of any express provision in the contract, at the end of franchise period ? A. Renegotation
b. Negotation c. Generation d. Regeneration
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 57
The Power Purchase Agreement (PPA) provide for dispute resolution through a Panel consisting
of ------- high level representative(s) failing which through Arbitrators and Experts who are
either Indian or foreigners and such disputes would be settled in a place either in India or abroad.
a. One or two b. Three or four c. Two or four d. Four or five
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 58
The failure on the part of the seller to furnish and maintain the ------- as mentioned above shall
be a material breach of the term of the agreement under the Electricity Act on the part of the
seller a. Security deposit b. Current deposit c. Trade deposit d. Bank deposit
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 59
The parties shall comply with the dispatch procedures, which should be mutually agreed among
parties no later than 60 days before the scheduled commercial operation date of the first unit. The
dispatch procedures to be agreed to shall at all times be ------- with the applicable laws including
grid code. a. Consistent b. Honest c. Existent d. Continuous
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 60
If the number of qualified bidders responding to the Request for Qualification (RFQ)/Request for
Proposal (RFP) is less than two, and procurer still wants to continue with the bidding process, the
same may be done with the consent of the -------. a. Central Electricity Regulatory Commission
b. State Electricity Regulatory Commission c. Appropriate Commission d. Power Purchase
Agreement e. Independent Power Producers
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
5.
e is correct
2 points
QUESTION 61
When a government allows raw materials and other intermediate products to enter a country duty
free, its tariff policy generally results in a (an): a. Effective tariff rate less than the nominal tariff
rate b. Nominal tariff rate less than the effective tariff rate c. Rise in both nominal and effective
tariff rates d. Fall in both nominal and effective tariff rates
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 62
The affected party shall give notice to the other party of the cessation of the relevant event of
force majeure and the cessation of the effects of such event of force majeure on the performance
of its rights or obligations under the agreement of the Electricity Act, as soon as practicable after
becoming aware of each of these -------. a. Cancellations b. Performance c. Cessations d. None of
the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 63
A time of day shall in Electricity Act, save as otherwise provided in any agreement or document
be construed as a reference to: a. Greenwich Meridian Time b. Greenwich Mean Time c. Indian
saved Time d. Indian Standard Time
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points

QUESTION 1
An oligopoly with a dominant price leader will produce a level of output: a. That would
prevail under competition b. Between that which would prevail under competition and that
which a monopolist would choose in the same industry c. Between that which would prevail
under competition and that which a monopolistic competitor would choose in the same
industry d. Equal to what a monopolist would choose in the same industry
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
3 points
QUESTION 2
Procurer shall indemnify, defend and hold the seller harmless against which of the following
situation? a. All third party claims, actions, suits or proceedings for any loss of or damage to
property of such third party, or death or injury to such third party b. All third party damages,
suits or proceedings for any loss of or threat to property of such third party, or death or injury
to such third party c. All second party claims, actions, suits or proceedings for any loss of or
damage to property of such second party, or death or injury to such second party d. All type
of claims, actions or proceedings for any loss of property
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
3 points
QUESTION 3
The ------- was initially constituted on 24th July, 1998 under the Ministry of Power’s
Electricity Regulatory Commissions Act, 1998 for rationalization of electricity tariffs,
transparent policies regarding subsidies, promotion of efficient and environmentally benign
policies, and for matters connected Electricity Tariff regulation. a. State Electricity
Regulatory Commission b. Central Electricity Regulatory Commission c. Renewable Energy
Regulatory Commission d. Non-renewable Energy Regulatory Commission
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
3 points
QUESTION 4
Standard documentation to be provided in the RFQ shall include, definition of requirements,
including: a. Details of location and technical specifications may not be applicable for each
component of the transmission line b. Construction milestones to be specified by the bidders
c. Financial requirements to be met by bidders excluding, minimum net-worth, revenues, etc.
with necessary proof of the same, not highlighted in the bid documents d. Both a and b e. All
of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
5.
e is correct
3 points
QUESTION 5
The seller shall not itself use any of the electricity generated by the power station during the
term of the Agreement of the Electricity Act, except for the purpose of meeting the power
station's ------- load requirements. A. Compulsory b. Mandatory c. Auxiliary d. Peak
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 6
second phase, the whole plant will be ------- into different type of fuel-fired plant. If so, the
financial implications are checked thereof. A. Changed b. Diverted c. Converted d.
Implemented
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 7
The parties may submit written comments on the initial report within 14 days of its
presentation. The arbitral panel may, at the request of a party, reconsider its report and make
any further examination that it considers appropriate after considering such written
comments. The final report shall include a ------- of any comment by the parties. a.
Discussion b. Complaint c. Suggestion d. Agression
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 8
Upon receipt of notice of disagreement to the bill dispute notice, authorized representative(s)
of a director of the ------- of each party shall meet and make best endeavours to amicably
resolve the dispute within fifteen (15) days of receiving such notice of disagreement to the
bill dispute notice. a. Board of consultants b. Board of directors c. Board of members d.
Board of powers
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 9
If the monitoring engineer certifies that it is unable to give a final test certificate because
events or circumstances beyond the seller's reasonable control prevented the repeat
performance test from being carried out in accordance with schedule 5 of the Electricity Act,
the procurer shall reschedule a ------- as soon as reasonably practicable. a. Repeat evaluation
test b. Repeat recognition test c. Repeat performance test d. Repeat revaluation test
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 10
The standard model for electricity liberalization is the "British model", after the British
system, which began in the late 1980 with the privatization and vertical de-integration of the -
------ electricity industry. a. United State b. London c. United Kingdom d. Great Britain
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 11
The ------- method calculates the participation of agent i by tracking the influence in the
network of a transit between node i and several ending nodes that result from the rules that
conform the algorithm. a. Marginal Participation method b. Average participation method c.
Transmission Pricing method d. Distribution Pricing method
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 12
The results of the characteristics test show that the unit, or in the case the power station has
been commissioned, the power station is capable of operating in accordance with its -------. a.
Contracted Contractual Characterstics b. Contracted Consent Characterstics c. Contracted
Casual Characterstics d. Contracted Operating Characteristics
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 13
Any event of force majeure affecting the performance of the construction contractor of the
interconnection facilities shall be deemed to be an event of force majeure affecting procurer
only if the force majeure event is affecting a delay in the performance of
contractors
procurer's .
2 points
QUESTION 14
When a government allows raw materials and other intermediate products to enter a country
duty free, its tariff policy generally results in a (an): a. Effective tariff rate less than the
nominal tariff rate b. Nominal tariff rate less than the effective tariff rate c. Rise in both
nominal and effective tariff rates d. Fall in both nominal and effective tariff rates
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 15
Which of the following is an act of force meajure? a. Unavailability, late delivery, or changes
in cost of the plant, machinery, materials, spare parts, fuel or consumables for the project b.
Strikes or labour disturbance at the facilities of the affected party c. Delay in the performance
of any contractor, sub-contractors or their agents d. Any act of war (whether declared or
undeclared), invasion, armed conflict or act of foreign enemy, blockade, embargo
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 16
indemnified
The party may contest, defend and litigate a claim, action, suit or proceeding for
which it is entitled to be Indemnified under article 15.1.1(a) or 15.1.2(a) and the
indemnifying party shall reimburse to the indemnified party all reasonable costs and expenses
incurred by the indemnified party.
2 points
QUESTION 17
Contractual terms may last anywhere between------- during which time the power purchaser
buys energy, and sometimes also capacity and/or ancillary services, from the electricity
generator. a. 1 to 2 years b. 2 to 3 years c. 3 to 5 years d. 5 to 20 years
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 18
Unlike a perfectly competitive firm, a monopolist -------. a. Can choose how much output to
produce b. Cannot increase production without affecting the price he receives for his good c.
Usually sells in a market with a downward-sloping demand curve d. Has an MR from
increasing output by one unit equal to the price of his product
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 19
The suspension of benefits shall last until the responding party implements the decision of the
arbitral panel’s final report or until the parties reach a ------- satisfactory agreement on the
dispute. a. Inclusive b. Mutually c. Exclusive d. None of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 20
The methodology adopted for determination of tariff is a combination of cost plus approach
and -------. a. Performance based regulation b. Capital expenditure c. Capital cost d. Capacity
Index
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 21
The Fixed Tariff Model as adopted by some Independent Power Producers (IPPs) is so
designed that it gives an impression of the net tariff to be either equal to or less than the tariff
arrived at by adopting Standard Tariff Model or Two-part Tariff Model.
1.
true
2.
false
1 points
QUESTION 22
Direct labour cost includes -------. a. The wages directly paid to working staff b. The
expenditures for raw and semi-finished materials c. The direct or indirect expenses on
production d. The expenses on marketing and administrative functions
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 23
To ensure competitiveness, the minimum number of qualified bidders should be at
two
least (number) other than any affiliate company or companies of the procurer.
1 points
QUESTION 24
The parties choose to contest, defend or litigate indemnity claim, action, suit or proceedings
in accordance with article 15.3.1 of the ------- agreement. a. Dispute b. Indemnity c. Insurance
d. None of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 25
The investment plan and borrowing details should be examined to assess the tax burden on
the project.
1.
true
2.
false
1 points
QUESTION 26
As the price of a good increases, the change in the quantity demanded can be shown by : a.
Shifting the demand curve leftward b. Shifting the demand curve rightward c. Moving down
along the same demand curve d. Moving up along the same demand curve
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 27
Under a Power Purchase Agreement (PPA) , the ------- is organized as a special purpose
entity whose main purpose is to facilitate non-recourse project financing. A. Buyer b. Seller
c. Contractor d. Distributer
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 28
Payments are to be made by the Buyer of Power (BOP) on the basis of
bill
the presented by the Independent Power Producers (IPP). The terms and
conditions are required to be examined thoroughly.
1 points
QUESTION 29
The particular characteristics of the price risk are highly dependent on the physical
fundamentals of the market such as the mix of types of generation plant and relationship
between demand and weather patterns.
1.
true
2.
false
1 points
QUESTION 30
The seller shall notify the procurers in writing at least ------- a month on the progress made in
satisfying the conditions. a. Once b. Twice c. Thrice d. None of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 31
Which of the following is an exception to the most favored nation principle? a. Trade in
petroleum b. Trade with Japan c. A free-trade area or a customs union d. Trade in services
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 32
The deadweight loss of a tariff -------. a. Is a social loss because it promotes inefficient use of
national resources b. Is a social loss because it reduces the revenue of the government c. Is
not a social loss because it merely redistributes revenue from one sector to another d. Is not a
social loss bacuase it is paid for by rich corporations e. None of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 33
Within how many days, the seller shall provide the procurers and the independent engineer
each with copies of the detailed test results of a commissioning test? a. Two days b. Four
days c. Five days d. Seven days
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 34
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 35
The procurer may, at his option, adopt a ------- tender process for medium term procurement,
combining the Request for Proposal (RFP) and Request for Qualification (RFQ) processes.
1.
Double stage
2.
single stage
3.
Three stage
4.
Multipart stage
1 points
QUESTION 36
The section 63 of the Electricity Act, 2003 marks a departure from regulation of tariff by
Regulatory
the Commissions based on the terms and conditions of tariff specified by them.
1 points
QUESTION 37
The variable charges for thermal stations are payable based on norms of operation. These
norms of operation includes -------. a. Station efficiency in terms of heat rate b. Specific fuel
oil consumption c. Auxiliary energy consumption d. All of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 38
Notwithstanding article ------- of indemnity , the seller may create any encumbrance over all
or part of the security package or the other assets of the project to the lenders or the lender's
representative. a. 16.1 b. 16.2 c. 16.3 d. 16.5
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 39
The ------- tariff for a station was calculated to cover the fixed cost as well as the variable cost
at a certain (normative) generation level. a. single-part tariff b. Multi-part tariff c.
Transmission tariff d. Two-part tariff
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 40
Increase or decrease in taxes applicable on fuel shall be directly linked to the -------. a.
Eletricity charges b. Fuel charges c. Power charges d. Energy charges
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 41
The procurer shall constitute a committee for evaluation of the bids with at
one
least (number) member external to the procurer’s organization and affiliates.
1 points
QUESTION 42
The transmission system in the country consists of the regional networks, the inter-regional
connections that carry electricity across the ------- regions, and the State networks.
1.
Ten
2.
Fifteen
3.
Five
4.
Twenty
1 points
QUESTION 43
Section 3 of the Act, clearly mandates that formulation of National Electricity Policy,
National Tariff Policy and Plan thereof for development of power systems shall be based on
optimal utilization of all resources including ------- sources of energy.
1.
Non-renewable
2.
Renewable
3.
Natural
4.
Renewable and Non-renewable
1 points
QUESTION 44
Which of the following tariff are in practice in India? a. Standard Tariff Model b. Fixed Rate
of Return Model c. Two-Part Tariff Model d. All of the above e. Both a and b
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
5.
e is correct
1 points
QUESTION 45
"Volume risk" is often used to denote the phenomenon whereby electricity market
participants have uncertain volumes or quantities of consumption or production.
1.
true
2.
false
1 points
QUESTION 46
All records, documents and data mentioned in article 9.5.4.1 of the Electricity Act shall be
maintained for a minimum of ------- months after creation of such records, documents or data.
a. Six b. Twelve c. Eighteen d. Sixty
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 47
The principle benefit of tariff protection goes to a. Domestic consumers of the good produced
b. Foreign consumers of the good produced c. Domestic producers of the good produced d.
Foreign producers of the good produced e. None of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 48
In the written request pursuant to article 9 of the dispute settlement agreement, the
complaining party requesting the establishment of an arbitral panel shall designate member of
that arbitral panel. a. No b. One c. Two d. Three
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 49
During the consultation period, the parties shall continue to perform their respective
obligations under this agreement termination of procurer event of default. a. Seller b.
Contractor c. Procurer d. Arbitrator
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 50
Which trade policy results in the government levying a “two-tier” tariff on imported goods?
a. Tariff quota b. Nominal tariff c. Effective tariff d. Revenue tariff
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 51
Procurer shall provide only ------- interpretation of the tender document to any
bidder/participant and the same shall be made available to all other bidders.
1.
written
2.
Oral
3.
Formal
4.
Informal
1 points
QUESTION 52
consumers
Balance needs to be maintained between the interests of and the need for
investments while laying down rate of return.
1 points
QUESTION 53
The seller under the Power Purchase Agreement (PPA) is typically an------- power producer.
a. Independent b. Dependent c. Interdependent d. None of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 54
The ------- agreement may only be amended or supplemented by a written agreement between
the parties. a. Amendment b. Dispute c. Termination d. Indemnity
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 55
How much tariff Period is to be determined for All other renewable energy power projects by
the Commission?
1.
25 years
2.
35 years
3.
15 years
4.
13 years
1 points
QUESTION 56
Indemnity clauses are often found in ------- property licensing agreements. a. Electricity b.
Intellectual c. Personal d. Public
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 57
The fact that there are very different tariffs on different products is known as: a. The structure
of protection b. public choice c. positive choice d. rent seeking
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 58
The quality of workmanship comprises all ------- needs possession for the various
construction a. Basic b. Required c. Essential d. Compulsory
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 59
The period beginning on the date of this Agreement and each succeeding twelve (12) months
period thereafter. Provided that: the Contract Year shall begin once again from the Required
Commercial Operation Date of the first Unit and shall thereafter be for each succeeding
twelve (12) months period and provided further that, the last Contract Year of this Agreement
shall end on the last day of the term of this Agreement. The year mentioned above refers to:
a. Previous year b. Preceeding year c. Current year d. Exceeding year
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
4 points
QUESTION 60
Regulation 17.6.1 of Multi-year Tariff (MYT), does not stipulates which of the following
factor as Controllable factors? a. Economy-wide influences, such as unforeseen changes in
inflation rate, market-interest rates, taxes and statutory levies b. Technical & Commercial
Losses including bad debts c. Consumer Mix in case of presence of more than one
Distribution licensee within a area and availing open access by existing consumer d. Working
Capital Requirements e. Capital Expenditure on account of time and/or cost
overruns/efficiencies in the implementation
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
4 points
QUESTION 61
Which of the following eligibility criteria match with Small hydro project? a. Topping cycle-
Facility with sum of useful power output and one half the useful thermal output be greater
than 45percent of the facility’s energy consumption, during season b. Plant based on Rankine
cycle technology and using the fuel sources, provided use of fossil fuel is restricted only to
15percent of total fuel consumption on annual basis c. Installed capacity to be lower than or
equal to 25 MW at single location d. Located at sites having minimum annual mean Wind
Power Density (WPD) of 200 Watt/m2 e. Based on Technologies approved by MNRE
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
5.
e is correct
4 points
QUESTION 62
The demand projection might give a totally distorted picture of deterministic method, which
does not take into account stochastic nature of demand, is adopted, as opposed to the
probabilistic method. Hence, the question needs to be addressed as to what extent: a.
Capacity addition would be necessary in view of the actual demand position in existence and
the rise in future b. Capacity reduction would be necessary in view of the actual demand
position in existence and the rise in future c. Capacity addition would be necessary in view of
the demand position in existence and the rise in present d. Capacity addition would be
necessary in view of the actual supply position in existence and the rise in future
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
4 points
QUESTION 63
In an Emergency, a procurer may require the seller to use its best efforts to reschedule a
confirmed Scheduled Outage (including one which has already begun) to a more convenient
time and shall compensate -------. a. The Seller for all additional costs which it reasonably
incurs in rescheduling the Scheduled Outage b. Damages payable or liability incurred in
respect of the other Procurer who has not requested an emergency rescheduling of a
confirmed Scheduled Outage c. Damages payable or liability incurred in respect of the many
Procurers who has requested an emergency rescheduling of a confirmed Scheduled Outage d.
Both a and b e. All of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
5.
e is correct
4 points

QUESTION 1
Which of the following statement does not come under the Request for Proposal (RFP)
benefits/documentation? a. RFP will specify the amount of contract performance Guarantee
(PG) as percentage of estimated project cost that the Transmission service Provider (TSP)
will have to furnish b. The RFP shall specify the Details of location and technical
specifications as may be applicable for each component of the transmission line c. The RFP
will specify the bid bond as well as the project completion guarantee that the bidders will
have to furnish d. The RFP shall specify the liquidated damages that would apply in event of
delay in start of providing the transmission services e. The RFP shall specify the Discount
Factor (DF) that would be used for evaluation of bids
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
5.
e is correct
4 points
QUESTION 2
The "winding-up", "dissolution", "insolvency", or "reorganisation" of a company or
corporation shall be construed so as to a. Include any equivalent or analogous proceedings
under the law of the jurisdiction in which such company or corporation is incorporated b.
Include any equivalent or analogous proceedings under the law of the jurisdiction in which
such company or corporation is working c. Include any equivalent or analogous proceedings
under the law of the jurisdiction in which such company or corporation is transferring d. All
of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
4 points
QUESTION 3
The #FTB# can give subsidy to the extent they consider appropriate as per the provisions of
section 65 of the Act. Direct subsidy is a better way to support the poorer categories of
consumers than the mechanism of cross-subsidizing the tariff across the board. Subsidies
should to be targeted effectively and in transparent manner. As a substitute of cross-subsidies,
the State Government has the option of raising resources through mechanism of electricity
duty and giving direct subsidies to only needy consumers. a. State Government b. Central
Government c. Central and State Government d. National Electricity Policy
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
4 points
QUESTION 4
Unless the parties otherwise agree within 20 days from the date of the delivery of the request
for the establishment of the panel, the terms of reference shall be: a. To examine, in the light
of the relevant provisions of the dispute settlement agreement, the matter referred to in the
panel request and to make findings, determinations and recommendations as provided in
article 13 and to deliver the written reports referred to in articles 13 and 14 b. To examine, in
the light of the articles of the dispute settlement agreement, the matter referred to in the panel
request and to make findings, determinations and recommendations as provided in article 13
c. To examine, in the light of the relevant disputes of the dispute settlement agreement, the
matter referred to in the panel request and to make findings, determinations and
recommendations as provided in article 14 d. None of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
4 points
QUESTION 5
Independent engineer is -------. a. An independent consulting engineering firm or group
selected jointly by the Procurers from a list of three (3) such consulting engineering firms or
groups which shall be selected by the Seller b. An independent consulting engineering firm or
group selected jointly by the Procurers from a list of five (5) such consulting engineering
firms or groups which shall be selected by the Seller c. An independent consulting
engineering firm or group selected jointly by the Procurers from a list of seven (7) such
consulting engineering firms or groups which shall be selected by the Seller d. All of the
above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
4 points
QUESTION 6
If a small country imposes a tariff, then a. The producers must suffer a loss b. The consumers
must suffer a loss c. The government revenue must suffer a loss d. The demand curve must
shift to the left e. None of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
5.
e is correct
1 points
QUESTION 7
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 8
The seller shall pay to procurer or other entity directly for the power and energy consumed
for ------- of the project and sourced from such entity. a. Initialisation b. Start-up c. Execution
d. Use
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 9
The process that converts solid coal into liquid hydrocarbon fuel is called: a. Liquefaction b.
Carbonation c. Catalytic conversion d. Cracking
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 10
If the dispute resolution is through Panel or Experts or Arbitrators, it is to be checked whether
it there is any: a. Agreed party b. Pre-agreed party c. Un-agreed party d. None of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 11
The MYT framework will divide all costs into single broad categories i.e controllables
framework.
1.
true
2.
false
1 points
QUESTION 12
thermal
Variable charges represent the fuel charges for generating stations and are
corrected for fuel price variation as per monthly weighted average price and heat value of
fuel.
1 points
QUESTION 13
Return on Equity shall be computed on pre-tax basis at a base rate of 15.5percent. In case of
projects commissioned after 1st April, 2012 an additional return of ------- may be allowed if
such projects are completed within stipulated guidelines.
1.
0.9percent
2.
0.5percent
3.
1.5percent
4.
5.5percent
1 points
QUESTION 14
How much tariff Period is to be determined for Small hydro projects below 5 MW by the
Commission?
1.
25 years
2.
35 years
3.
15 years
4.
13 years
1 points
QUESTION 15
The impact of change in a particular tax/duty/surcharge/ cess shall be computed as a percent
of capital cost and the same percentage shall be applied on the non-escalable charges to
compute the impact.
1.
true
2.
false
1 points
QUESTION 16
insurance
The Power Purchase Agreement (PPA's) provide for payment of Premium by
the Buyer of Power (BOP) involved at the construction stage, commissioning stage and in the
post-commissioning stage.
1 points
QUESTION 17
Activities involved in construction are called -------. a. Development activities b.
Maintenance activities c. Inspection activities d. Construction activities
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 18
If the tariff on computers is not changed, but the government then adds hitherto nonexistent
tariffs on imported semi-conductor components, then the effective rate of protection in the
computer industry will a. Increase b. Decrease c. Remain the same d. Depend on whether
computers are PCs or “Supercomputers" e. None of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
5.
e is correct
1 points
QUESTION 19
Energy is ------- that flows through a metered point for a given period and is measured in
Megawatt Hours (MWh). A. Transmission b. Process c. Electricity d. Frequency
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 20
Suppose an importer of steel is required to pay a tariff of $20 per ton plus 5 percent of the
value of steel. This is an example of a (an): a. Specific tariff b. Ad valorem tariff c.
Compound tariff d. Tariff quota
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 21
Power procurement for future requirements should be through a transparent competitive
bidding mechanism using the guidelines issued by the Central Government vide gazette
notification dated 19th January -------.
1.
2000
2.
2005
3.
2010
4.
2015
1 points
QUESTION 22
A power purchase agreement (PPA) is a contract involving the generation and sales of
producer
electricity – which is normally developed between the and the consumer of the
electricity.
1 points
QUESTION 23
The imposition of tariffs will help a nation attain which of the following goals? a. Decreased
domestic consumer prices b. Increased domestic employment c. Increased amount and variety
of goods available for consumers d. Increased competition between domestic and foreign
producers e. None of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
5.
e is correct
1 points
QUESTION 24
During the consultation period, the parties shall continue to perform their respective
obligations under this agreement termination of procurer event of default. a. Seller b.
Contractor c. Procurer d. Arbitrator
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 25
The seller shall notify the procurers in writing at least ------- a month on the progress made in
satisfying the conditions. a. Once b. Twice c. Thrice d. None of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 26
The bidding shall necessarily be by way of a. Central Government b. National Competitive
Bidding c. International Competitive Bidding d. State Government
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 27
contract
An indemnity agreement is language that indemnifies (holds harmless) one of
the parties in a contract for specific actions that might cause damage to the other party.
1 points
QUESTION 28
The letter of credit may also be substituted by an unconditional and irrevocable bank
equivalent
guarantee or an instrument as mutually agreed by procurer and the seller.
1 points
QUESTION 29
The Government of India adopted in 1992 a ------- formula for NTPC stations based on the
recommendations of the KP Rao Committee. a. single-part tariff b. Multi-part tariff c.
Transmission tariff d. Two-part tariff
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 30
The section 63 of the Electricity Act, 2003 marks a departure from regulation of tariff by
Regulatory
the Commissions based on the terms and conditions of tariff specified by them.
1 points
QUESTION 31
Each party shall bear the costs of its own member of the arbitral panel and of its
representation in the arbitral proceedings; the costs related to the chairman and any other
costs shall be borne: a. Proportionally by the parties b. Equally by the parties c. Unequally by
the parties d. All of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 32
hydro
The concept of capacity Index ensures use of storage type generating stations
during peak hours and discourages spillage of water in case of run of the river hydro
generating stations.
1 points
QUESTION 33
According to the Electricity Act, the metering system shall be the joint property of the
procurers and the procurers shall be jointly responsible for the cost of its maintenance,
replacement and -------. a. Repair b. Installation c. Calibration d. Rectification
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 34
Indemnity clauses are often found in ------- property licensing agreements. a. Electricity b.
Intellectual c. Personal d. Public
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 35
RLDC means the relevant Regional Load Despatch Centre as defined in the ------- , in the
region in which the Project is located. A. Labour laws b. Consumer laws c. Power laws d.
Electricity laws
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 36
If the price of automobiles were to increase substantially, the demand curve for gasoline
would most likely : a. Shift leftward b. Shift rightward c. Become flatter d. Become steeper
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 37
Each party shall designate from time-to-time, in a ------- notice to the other party. a. Written
b. Oral c. Formal d. Informal
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 38
Which of the following are the non-conventional sources of energy? a. Wind Energy b. Tidal
Energy c. Solar Energy d. Geo-Thermal Energy e. All of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
5.
e is correct
1 points
QUESTION 39
A purely competitive market is characterized by few number of buyers and sellers, non-
heterogeneous product, and easy entry and exit.
1.
true
2.
false
1 points
QUESTION 40
The transmission system in the country consists of the regional networks, the inter-regional
connections that carry electricity across the ------- regions, and the State networks.
1.
Ten
2.
Fifteen
3.
Five
4.
Twenty
1 points
QUESTION 41
The fact that there are very different tariffs on different products is known as: a. The structure
of protection b. Public choice c. Positive choice d. Rent seeking
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 42
Steam reforming is currently the least expensive method of producing: a. Coal b. Biogas c.
Hydrogen d. Natural gas
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 43
What is the accumulated deprecation? a. Sum of all depreciation expenses of a fixed asset b.
Depreciation expenses c. Cost of depletion of assets d. Future value of fixed asset
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 44
The release of the security deposit shall be without ------- to other rights of the procurers
under the project development agreement. a. Partiality b. Discrimination c. Consent d.
Prejudice
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 45
The parties acknowledge that a ------- of any of the obligations contained in the dispute
settlement agreement would result in injuries. a. Breach b. Ignorance c. Negligence d.
Disobedience
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 46
indemnified
The party may contest, defend and litigate a claim, action, suit or proceeding for
which it is entitled to be Indemnified under article 15.1.1(a) or 15.1.2(a) and the
indemnifying party shall reimburse to the indemnified party all reasonable costs and expenses
incurred by the indemnified party.
2 points
QUESTION 47
Upon receipt of notice of disagreement to the bill dispute notice, authorized representative(s)
of a director of the ------- of each party shall meet and make best endeavours to amicably
resolve the dispute within fifteen (15) days of receiving such notice of disagreement to the
bill dispute notice. a. Board of consultants b. Board of directors c. Board of members d.
Board of powers
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 48
Which of the following can be said about a monopoly? a. Monopolies are always inefficient
and are therefore the least desirable form of market b. They can cause a shift in the demand
curve to benefit society c. They may aid in innovation d. All of the above are correct
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 49
If the monitoring engineer certifies that it is unable to give a final test certificate because
events or circumstances beyond the seller's reasonable control prevented the repeat
performance test from being carried out in accordance with schedule 5 of the Electricity Act,
the procurer shall reschedule a ------- as soon as reasonably practicable. a. Repeat evaluation
test b. Repeat recognition test c. Repeat performance test d. Repeat revaluation test
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 50
Contractual terms may last anywhere between------- during which time the power purchaser
buys energy, and sometimes also capacity and/or ancillary services, from the electricity
generator. a. 1 to 2 years b. 2 to 3 years c. 3 to 5 years d. 5 to 20 years
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 51
Meter output of the main meters and check meters installed at the delivery point shall be
taken as at 00:00 hours on each day and the data (along with soft copy thereof by courier
and/or electronic mail) on total energy output from 00:00 hours to 12:00 hours of the relevant
day, shall be furnished by the seller to procurer by fax or any other communication mode
mutually decided, by 24:00 hours on the following day.
1.
true
2.
false
2 points
QUESTION 52
RPC means the relevant ------- established by the Government of India for a specific region
for facilitating integrated operation of the power system in that region. a. Rural Power
Committee b. Real Power Committee c. Regional Power Committee d. Relative Power
Committee
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 53
Which of the following would be consistent with a more aggressive approach to financing
working capital? a. Financing short-term needs with short-term funds b. Financing permanent
inventory buildup with long-term debt c. Financing seasonal needs with short-term funds d.
Financing some long-term needs with short-term funds
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 54
The procurer or procurers, as the case may be, shall jointly appoint an engineer (the
“Monitoring Engineer”) to monitor the repeat performance test and to certify the results in
accordance with article 8.2 of the Electricity Act . The monitoring engineer shall be the -------
. a. Technical engineer b. Civil engineer c. Junior engineer d. Independent engineer
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 55
Until the enactment of Electricity Act, 2003, the renewable energy development was mainly
governed by the policies framed by -------. a. State Electricity Regulatory Commissions b.
Central Electricity Regulatory Commissions c. Central and State Governments d. State
Governments e. Central Governments
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
5.
e is correct
2 points
QUESTION 56
If the gap is ------- between the actual generation and the demand projection at the bus bar, it
can possibly be met by upgrading the existing installed capacity or by increasing the capacity
of the existing system by proper maintenance or by minimizing the T&D(Transmission and
Distribution) loss. a. Big b. Small c. Broad d. Narrow
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 57
Businesses that offer somewhat dangerous activities to the public require that the members of
the public sign an indemnity agreement releasing the business from liability in case of an
accident. In reality, if the business is found to be negligent (faulty equipment, poor
maintenance), the individual who was injured still has a claim against the -------. a. Third
party b. Seller c. Procurer d. Company
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 58
second phase, the whole plant will be ------- into different type of fuel-fired plant. If so, the
financial implications are checked thereof. A. Changed b. Diverted c. Converted d.
Implemented
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 59
In this type of tariff if the Return on Equity (ROE) is fixed at a low Plant Load Factor (PLF),
it will be advantageous for the Independent Power Producers (IPPs) as it is easier to achieve
such low PLF with the present day technologically advanced power equipment. a. Fixed
Tariff Model b. Two Part Tariff Model c. One Part Tariff Model d. None of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 60
In many cases, Buyer of Power (BOP) have appointed foreign merchant bankers as financial
advisors to help them in finalizing the Power Purchase Agreement (PPA's). The mode of
selection, the terms and conditions and the fees payable to such merchant bankers should also
be ------- and may be commented upon if necessary. a. Assessed b. Analysed c. Scrutinised d.
Customised
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
3 points
QUESTION 61
Interconnection facilities includes -------. a. Without limitation, all other transmission and
distribution lines and associated equipment, transformers and associated equipment, relay and
switching equipment and protective devices, safety equipment b. The metering system
required for the Project c. The facilities for receiving power at the point where the
transmission line from the plant switchyard end is injecting power into the network d. All of
the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
3 points
QUESTION 62
The amount of -------l energy something uses to do a job depends on how long it’s used and is
measured in watt-hours (W-h). It is calculated by multiplying the electrical power (Watts) the
device requires by the amount of time it was used. A watt-hour is a very small amount of
electrical energy, so most of the time kilowatt-hours (kWh) are used (1 kWh = 1,000 W-h).
Most utility companies bill their customers based on the number of kWh of electrical energy
consumed. a. Electrical b. Solar c. Renewable d. Nonrenewable e. Fossil
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
5.
e is correct
3 points
QUESTION 63
The overall power situation of a State vis-a-vis the existing installed capacity, actual
generation of power, actual delivery of power at the bus bar and T&D loss should be looked
into. If the gap is ------- between the actual generation and the demand projection at the bus
bar, it can possibly be met by upgrading the existing installed capacity or by increasing the
capacity of the existing system by proper maintenance or by minimizing the T&D loss. a.
Narrow b. Broad c. Wide d. Small
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
3 points

QUESTION 1
Which of the following statement is true? a. Within 7 days after the date of the hearing, each
party may deliver a supplementary written submission responding to any matter that arose during
the hearing b. The arbitral panel shall fix the date and time of the hearing in consultation with the
parties. The Chair shall notify in writing to the parties the date and time of the hearing c. A Party
shall provide a copy of each of its submissions to the other party and not to each of the
arbitrators. A copy of the document shall also be provided in electronic format d. Either party
may provide for a right of action under its domestic law against the other party on the ground
that a measure of the other party is inconsistent
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
4 points
QUESTION 2
Which cost elements are taken into consideration for tariff calculation? a. The elements of cost in
Capacity Payment and in Energy Payment and assumption made in calculation of tariff b.
Formulae (generally in the Schedule of the Power Purchase Agreement ) adopted to calculate the
Capacity Payment and Energy Payment to find out elements of price escalation due in labour and
material, tax incremental charges and various elements that constitute the tariff c. Fixed costs,
Operation and Maintenance costs and Variable costs contemplated in tariff and price escalation
allowed therein d. All of the above e. None of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
5.
e is correct
4 points
QUESTION 3
Which of the following statements best describes the outcome under monopolistic competition?
a. In monopolistic competition, there are too few firms and each firm produces a slightly
different product at a scale that is greater than optimal b. In monopolistic competition, there is
the correct number of firms and each firm produces a slightly different product at an optimal
scale c. In monopolistic competition, there are too many firms and each firm produces a slightly
different product at the optimal scale d. In monopolistic competition, there are too many firms
and each firm produces a slightly different product at a scale that is less than optimal
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
4 points
QUESTION 4
The parties shall by agreement appoint the third arbitrator within 15 days of the appointment of
the second arbitrator. The arbitrator so appointed shall chair the arbitral panel. If the Parties are
unable to agree on the chair of the arbitral panel within 15 days after the date on which the
second arbitrator has been appointed, the chair shall be appointed in the presence of both parties
by a draw of lot from a list comprising three nominees of each party, fulfilling the ------- and
criteria laid down in the agreement of dispute settlement. If a party fails to submit its list of three
nominees within ten days of the other Party submitting its list, the chair shall be appointed by a
draw of lot from the list already submitted by the other party. a. Qualifications b. Guidelines c.
Qualities d. None of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
4 points
QUESTION 5
The period from (and including) the date upon which the construction contractor is instructed or
required to commence work under the construction contract up to (but not including) the
commercial operations date is known as: a. Construction Period b. Demonstration Period c.
Consultation Period d. Contraction Period
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 6
The Power Purchase Agreement (PPA) defines all of the commercial terms for the sale of
electricity between the two parties, including when the project will begin commercial operation,
schedule for delivery of electricity, penalties for under delivery, payment terms, and -------. a.
Appointment b. Rejection c. Termination d. Suspension
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 7
Contractual terms may last anywhere between------- during which time the power purchaser buys
energy, and sometimes also capacity and/or ancillary services, from the electricity generator. a. 1
to 2 years b. 2 to 3 years c. 3 to 5 years d. 5 to 20 years
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 8 REPEAT
The failure on the part of the seller to furnish and maintain the ------- as mentioned above shall
be a material breach of the term of the agreement under the Electricity Act on the part of the
seller a. Security deposit b. Current deposit c. Trade deposit d. Bank deposit
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 9
Which of the following feature are of Availability-based Tariff (ABT)? a. ABT brings about
enhanced grid discipline b. Economically viable power with right pricing c. Promote competition
and efficiency d. Encourage use of Merit Order Dispatch / Economic Dispatch in India e. All of
the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
5.
e is correct
2 points
QUESTION 10
For every individual -------, a number of physical paths are constructed, starting at the node
where the producer injects the power into the grid, following through the lines as the power
moves through the network, and finally reaching several of the loads in the system. a. Transistor
b. Generator c. Transmitter d. Refrigerator
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 11
The seller shall at all times keep the procurers informed ofthe available capacity of a unit and/or
(if the power station has been commissioned) the power station as a whole, and any impairment
of its contracted operating characteristics in accordance with Schedule 6 of the Electricity Act. a.
Shedule 4 b. Scedule 5 c. Schedule 6 d. Schedule7
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 12
The PPAs generally provide for construction of generation plants under the scheme of Build
Own and Operate (BOO) and not under the scheme of Build Own & Transfer (BOT). Under
BOT, there would be the express provision for the automatic transfer of assets at the end of the --
----- period (i.e. contract period) which is absent in BOO. a. Probationary b. Recession c.
Franchise d. Recovery
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 13
A $100 specific tariff provides home producers more protection from foreign competition when:
a. The home market buys cheaper products rather than expensive products b. It is applied to a
commodity with many grade variations c. The home demand for a good is elastic with respect to
price changes d. It is levied on manufactured goods rather than primary products
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 14
Meter output of the main meters and check meters installed at the delivery point shall be taken as
at 00:00 hours on each day and the data (along with soft copy thereof by courier and/or
electronic mail) on total energy output from 00:00 hours to 12:00 hours of the relevant day, shall
be furnished by the seller to procurer by fax or any other communication mode mutually decided,
by 24:00 hours on the following day.
1.
true
2.
false
2 points
QUESTION 15
Scheduled Energy is the ------- of energy delivered by the generating station at the delivery point
as scheduled by the nodal agency. a. Quantum b. Standard c. Amount d. Rate
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 16
Government prohibition of advertising liquor on television would most likely result in -------. a.
A rightward shift in the demand curve for liquor b. A leftward shift in the demand curve for
liquor c. A rightward shift in the demand curve for television advertising time d. No change in
the market for either liquor or television advertising
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 17
It means any event or circumstances or a combination of circumstances laid down in the Power
Purchase Agreement (PPA), which are beyond the control of the affected party in relation to
construction of any facility. a. Return on Equity b. Fixed Tariff Model c. Force Majeure d. None
of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 18
The seller may create any encumbrance over all or part of the security package or the other assets
of the project to the lenders or the lender's representative on their behalf as security for amounts
payable under the ------- and any other amounts agreed by the parties. a. Indemnity agreements b.
Mutual agreements c. Electricity agreements d. Financing agreements
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 19
The seller shall make payment of the amount calculated pursuant to article 4.6.1 of the
Electricity Act before ten (10) days or the earlier of the date on which the unit is actually
commissioned and the date of termination of this agreement.
1.
true
2.
false
2 points
QUESTION 20 REPEAT
Any request, notice, written submissions or other document shall be delivered by either party or
the arbitral panel by delivery against receipt, registered post, courier, facsimile transmission,
telex, telegram or any other means of ------- that provides a record of the sending thereof. a.
Transport b. Communication c. Telecommunication d. None of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
2 points
QUESTION 21
What shall be added up to arrive at the regional transmission charges payable for a month by the
users of the concerned regional (common) transmission system a. Amounts payable for the
month for all components of inter-State Transmission System (ISTS) in the region, charges for
which have been agreed to be pooled and shared by all regional beneficiaries b. Amounts
payable for the month for those parts or the whole of all new transmission systems for which
regional beneficiaries have agreed to pay the charges on pooled basis, or it has been so decided
by the commission c. Amounts payable for the month for the whole of all new transmission
systems for which regional beneficiaries have agreed to pay the charges on pooled basis, or it has
beenso decided by the commission d. Both a and b e. Both a and c
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
5.
e is correct
5 points
QUESTION 22
If the seller fails to furnish the valid and enforceable security deposit as provided in article 3.1.1
of the Electricity Act, at the time of the execution of this agreement, the same shall be a breach
of on the part of the seller of not duly fulfilling the terms of the bid. Which of the following is
the concequences of the above mention case? a. This agreement will not become effective and
the procurers shall be entitled to encash and appropriate the earnest money deposit given by the
seller at the time of the bid b. This agreement will not become effective and the seller shall be
entitled to encash and appropriate the earnest money deposit given by the seller at the time of the
bid c. This agreement will become effective and the procurers shall not be entitled to encash and
appropriate the earnest money deposit given by the seller at the time of the Bid d. None of the
above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
5 points
QUESTION 23
Which of the following provision of tariff comes under section 66 the Electricity Act, 2003? a.
This provision empowers the Appropriate Commission to require a licensee or a generating
company to furnish separate details in respect of generation, transmission and distribution for
determination of tariff. This provision underscores the requirement of maintenance of separate
accounts for each of the activities of generation, transmission and distribution by a utility,
especially a bundled organization engaged in all the activities as aforesaid b. This provision
empowers that the tariff determined through transparent process of bidding in accordance with
the guidelines issued by the Central Government shall be adopted by the Appropriate
Commission c. This provision empowers that every applicant shall publish the application, in
such abridged form and manner, as may be specified by the Appropriate Commission d. This
provision empowers the dealing with the payment of subsidy. It provides that if the State
Government intends to subsidize any consumer or class of consumers, the State Government
shall make advance payment of such subsidy to compensate the person affected by the grant of
the subsidy, in the manner as directed by the State Commission e. This provision empowers the
Appropriate Commission to endeavour to promote the development of market (including trading)
in specified manner. While exercising this power the Appropriate Commission shall be guided
by the National Electricity Policy referred to in section 3. This is the substantive provision
dealing with development of market in electricity sector and the phrasing of the provision
indicates a guarded movement towards a fullfledged market of electricity
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
5.
e is correct
5 points
QUESTION 24
Which of the following statement is correct in context of "Transmission Pricing"? a. A suitable
transmission tariff framework for all inter-State transmission, including transmission of
electricity across the territory of an intervening State as well as conveyance within the State,
which is not incidental to such inter-State transmission, needs to be implemented with the
objective of promoting effective utilization of all assets across the country. In addition,
accelerated development of new transmission capacities that are required b. The National
Electricity Policy mandates that the national tariff framework implemented should be sensitive to
distance, direction and related to quantum of power flow. This would not be developed by
Central Electricity Regulatory Commission (CERC) taking into consideration the advice of the
Central Electricity Authority (CEA). Such tariff mechanism was implemented from 1st April,
2006 c. Transmission charges, under this framework, can be determined on MW per circuit
kilometre basis, zonal postage stamp basis, or some other pragmatic variant, the ultimate
objective being to get the transmission system users to share the total transmission cost in
proportion to their respective utilization of the transmission system. The overall tariff framework
should be such as not to inhibit planned development/augmentation of the transmission system,
but should discourage non-optimal transmission investment. d. Both a and b e. All of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
5.
e is correct
5 points
QUESTION 25
The energy imported by the seller to the power station shall, subject to articles 9.4 and 9.5 of the
import
Electricity Act, be measured on the basis of meter readings from the meter.
1 points
QUESTION 26
Entry of new firms implies decrease in supply, which in turn reduces price.
1.
true
2.
false
1 points
QUESTION 27
Which of the following is an exception to the most favored nation principle? a. Trade in
petroleum b. Trade with Japan c. A free-trade area or a customs union d. Trade in services
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 28
All records, documents and data mentioned in article 9.5.4.1 of the Electricity Act shall be
maintained for a minimum of ------- months after creation of such records, documents or data. a.
Six b. Twelve c. Eighteen d. Sixty
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 29 REPEAT QUESTION
The ------- tariff for a station was calculated to cover the fixed cost as well as the variable cost at
a certain (normative) generation level. a. single-part tariff b. Multi-part tariff c. Transmission
tariff d. Two-part tariff
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 30
The suspension of benefits shall last until the responding party implements the decision of the
arbitral panel’s final report or until the parties reach a ------- satisfactory agreement on the
dispute. a. Inclusive b. Mutually c. Exclusive d. None of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 31
The seller shall not commence testing or commissioning any unit before the interconnection
meter, the import meter and the associated generator meter and check meters have been -------. a.
Repaired b. Arranged c. Purchased d. Installed
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 32
In a perfectly competitive industry, the industry supply curve is the sum of the -------. a. Average
total cost curves of all the individual firms b. Supply curves of all the individual firms c. Average
variable cost curves of all the individual firms d. Average fixed cost curves of all the individual
firms
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 33 REPEAT
According to the Electricity Act, the metering system shall be the joint property of the procurers
and the procurers shall be jointly responsible for the cost of its maintenance, replacement and ----
---. a. Repair b. Installation c. Calibration d. Rectification
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 34
To meet the peak load the plant has to be high-cost-fuel-fired as opposed to base load in which
the operational cost is: a. High b. Less c. Medium d. Equal
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 35
The ------- committee may agree upon procedures for the holding of meetings, the recording of
meetings and the appointment of sub-committees. a. Organising b. Coordinating c. Directing d.
Controlling
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 36
Following the issue of a seller preliminary termination notice, the consultation period of -------
days or such longer period as the parties may agree, shall apply. a. Fifteen b. Thirty c. Forty five
d. Sixty
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 37
Agreement or Power Purchase Agreement means this document including its Schedules
containing the terms and conditions for purchase of ------- by Procurer. a. Electricity b. Water c.
Raw material d. Power
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 38
Notwithstanding article ------- of indemnity , the seller may create any encumbrance over all or
part of the security package or the other assets of the project to the lenders or the lender's
representative. a. 16.1 b. 16.2 c. 16.3 d. 16.5
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 39
The release of the security deposit shall be without ------- to other rights of the procurers under
the project development agreement. a. Partiality b. Discrimination c. Consent d. Prejudice
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 40
The ------- means guarantee offtake of 65percent of the total contracted capacity for all Procures
taken together during a contract years. a. Maximun IntakeGuarantee b. Minimum
IntakeGuarantee c. Maxmum Offtake Guarantee d. Minimum Offtake Guarantee
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 41
concurrent
Electricity is a subject included in the list of our Constitution and hence the Central
Government and State Government can make laws on Electricity.
1 points
QUESTION 42
The independent engineer certifies that the seller has complied with the requirements of of the
Electricity Act. a. Article 5.1 b. Article 5.2 c. Article 5.3 d. Article 5.4
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 43
The methodology adopted for determination of tariff is a combination of cost plus approach and -
------. a. Performance based regulation b. Capital expenditure c. Capital cost d. Capacity Index
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 44
Under a power purchase agreement (PPA), the seller is the entity that owns the project. In most
cases, the seller is organized as a special purpose entity whose main purpose is to facilitate non-
recourse project financing.
1.
true
2.
false
1 points
QUESTION 45
The mode of selection of the party for arbitration and the Law of the country should be examined
by which the arbitration process will be -------. A. Ruled b. Maintained c. Executed d. Governed
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 46
If price is initially above the equilibrium level -------. a. The supply curve will shift rightward b.
The supply curve will shift leftward c. Excess supply exists d. All firms can sell as much as they
want
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 47
If the price of automobiles were to increase substantially, the demand curve for gasoline would
most likely : a. Shift leftward b. Shift rightward c. Become flatter d. Become steeper
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 48
Central Electricity Regulatory Commission (CERC), a key regulator of power sector in India, is
a statutory body functioning with quasi-judicial status under ------- of the Electricity Act, 2003.
1.
Section 60
2.
Section 65
3.
Section 70
4.
Section 76
1 points
QUESTION 49
The competitive bidding guidelines also provide that the procurer has the right to cancel the bid
if the price discovered does not match with the ------- market conditions. a. Past b. Present c.
Prevailing d. Future
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 50
The bidding shall necessarily be by way of a. Central Government b. National Competitive
Bidding c. International Competitive Bidding d. State Government
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 51
principal
A Power Purchase Agreement (PPA) is the agreement that defines the revenue and
credit quality of a generating project and is thus a key instrument of project finance.
1 points
QUESTION 52
The term winding up is used in relation to: a. Sole proprietorship b. Partnership c. Company d.
Cooperative societies
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points
QUESTION 53
The MYT framework will divide all costs into single broad categories i.e controllables
framework.
1.
true
2.
false
1 points
QUESTION 54
The Fixed Tariff Model as adopted by some Independent Power Producers (IPPs) is so designed
that it gives an impression of the net tariff to be either equal to or less than the tariff arrived at by
adopting Standard Tariff Model or Two-part Tariff Model.
1.
true
2.
false
1 points
QUESTION 55
Article 16.1 of indemnity does apply to liens arising by operation of law (or by an agreement
evidencing the same) in the ordinary course of the seller carrying out the project.
1.
true
2.
false
1 points
QUESTION 56 REPEAT
The seller under the Power Purchase Agreement (PPA) is typically an------- power producer. a.
Independent b. Dependent c. Interdependent d. None of the above
1.
a is correct
2.
b is correct
3.
c is correct
4.
d is correct
1 points

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Take Test: MDSP812D-Power Pricing & Power Purchase ...

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