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    Welcomes Searjant & Lundy Engineers For The Brief ON: Tariff Determination

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    Vivek Naik
    The document provides an overview of key terminology and regulatory frameworks for tariff determination for power plants. It defines terms related to plant operations and efficiency like GCV, heat rates, and fuel consumption. It also outlines the regulatory bodies that set tariffs and the process, noting tariffs have fixed and variable costs. The fixed cost elements like interest, depreciation, return on equity and O&M expenses are also defined. Factors considered in calculating interest on working capital are also provided.

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    Welcomes Searjant & Lundy Engineers For The Brief ON: Tariff Determination

    Uploaded by

    Vivek Naik
    9 views9 pages
    The document provides an overview of key terminology and regulatory frameworks for tariff determination for power plants. It defines terms related to plant operations and efficiency like GCV, heat rates, and fuel consumption. It also outlines the regulatory bodies that set tariffs and the process, noting tariffs have fixed and variable costs. The fixed cost elements like interest, depreciation, return on equity and O&M expenses are also defined. Factors considered in calculating interest on working capital are also provided.

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    Power plant electricity tariff calculations

    Original Title

    Tariff determination

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    The document provides an overview of key terminology and regulatory frameworks for tariff determination for power plants. It defines terms related to plant operations and efficiency like GCV, heat rates, and fuel consumption. It also outlines the regulatory bodies that set tariffs and the process, noting tariffs have fixed and variable costs. The fixed cost elements like interest, depreciation, return on equity and O&M expenses are also defined. Factors considered in calculating interest on working capital are also provided.

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    9 views9 pages

    Welcomes Searjant & Lundy Engineers For The Brief ON: Tariff Determination

    Uploaded by

    Vivek Naik
    The document provides an overview of key terminology and regulatory frameworks for tariff determination for power plants. It defines terms related to plant operations and efficiency like GCV, heat rates, and fuel consumption. It also outlines the regulatory bodies that set tariffs and the process, noting tariffs have fixed and variable costs. The fixed cost elements like interest, depreciation, return on equity and O&M expenses are also defined. Factors considered in calculating interest on working capital are also provided.

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    of 9

    WELCOMES

    SEARJANT & LUNDY


    ENGINEERS

    FOR THE BRIEF


    ON

    TARIFF DETERMINATION
    TERMINOLOGIES
    • GCV – KCAL/KG
    • TURBINE HEAT RATE
    • BOILER EFFICIENCY
    • TURBINE EFFICIENCY
    • GENERATOR EFFICIENCY
    • STATION HEAT RATE
    • AUXILIARY POWER CONSUMPTION
    • SPECIFIC LIGNITE CONSUMPTION
    • SPECIFIC SECONDARY FUEL CONSUMPTION
    • MANPOWER
    REGULATORY REGIME

    • NO MORE COST + APPROACH

    • REGULATORY REGIME ( CERC/SERC)

    • DESPITE PPA BETWEEN BUYER & SELLER ,TARIFF


    FIXED BY REGULATORS.

    • PUBLIC HEARING THROUGH NOTIFICATION.


    TERMINOLOGIES
    • TARIFF= FIXED COST+ VARIABLE COST ( ENERGY
    CHARGES)
     F.C IS FIXED IRRESPECTIVE OF GENERATION
    V.C VARIES WITH GENERATION
    ELEMENTS OF FIXED COST
    INTEREST ON LOAN
    DEPRECIATION
    RETURN ON EQUITY
    O& M EXPENSES
    INTEREST ON WORKING CAPITAL
    TERMINOLOGIES
    • COD- COMMERCIAL OPERATION DATE
    • INFIRM POWER
    • AUXILIARY POWER CONSUMPTION- ENERGY CONSUMED BY
    AUXILIARY EQUIPMENTS AND TRANSFORMER LOSSES WITH
    IN THE GENERATING STATION.
    • AVAILABILITY / PLF – 75% FOR LIGNITE BASED UNITS
    - 80%FOR LIGNITE BASED UNITS

    GROSS STATION HEAT RATE DURING


    STABILISATION PERIOD & SUBSEQUENT PERIOD
    SECONDARY FUEL OIL CONSUMPTION
    SPARES @ 2.5% OF PROJECT COST
    FIXED COST ELEMENTS
    • DEPRECIATION – RESIDUAL LIFE OF ASSET-
    10%
    • DEPRECIATION ALLOWED UPTO A MAXIMUM
    OF 90% OF THE PLANT (90/25=3.6%)
    • RETURN ON EQUITY- 14% PER ANNUM
    • O&M EXPENSES- 12.17 LAKH/MW FOR 200-
    250 MW UNITS & 10.95 LAKH/MW FOR 500
    MW & ABOVE
    • INTEREST ON WORKING CAPITAL
    INTEREST ON WORKING CAPITAL
    • COST OF COAL – 1.5 MONTHS FOR PIT HEAD AND 2
    MONTHS FOR NON-PIT HEAD STATION
    • COST OF SECONDARY FUEL FOR 2 MONTHS
    • O& M EXPENSES FOR ONE MONTH
    • MAINTENANCE SPARES @1% OF THE PROJECT COST
    ESCALATED AT 6% PER ANNUM FROM THE DATE OF
    COD
    • RECEIVABLES EQUIVALENT TO 2 MONTHS OF FIXED
    & VARIABLE CHARGES FOR SALE OF ELECTRICITY
    CALCULATED ON THE TARGET AVAILABILITY
    TERMINOLOGIES
    • LANDED COST OF COAL- INCLUDES ROYALTY,
    TAXES AND DUTIES, FRIGHT, NORMATIVE
    TRANSIT & HANDLING LOSSES
    • LOAN REPAYMENT – 10 YEARS FROM COD
    • FIRST YEAR AFTER COD IS CALLLED THE
    MORATORIUM PERIOD
    • SPECIFIC FUEL CONSUMPTION
    • SPECIFIC SECONDARY FUEL CONSUMPTION
    Thank you

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