CERC notifies draft tariff norms for 2019-24

The Central Electricity Regulatory Commission (CERC) has notified the draft CERC (Terms and Conditions of Tariff) Regulations, 2019, for the control period 2019-24. The CERC has proposed several changes in the draft regulations to align them with current trends in the power sector. The fixed cost for generators has been proposed to be recovered on a quarterly basis instead of an annual basis and a provision has been made for generators to recover the cost of coal if its gross calorific value at the receiving end does not match the billed/dispatched one. The norms for working capital have also been tightened with receivables reduced to 45 days from 60 days earlier. The CERC has also proposed the continuation of the 15.5 per cent regulated return on equity for generation and transmission companies, among other changes.