The Odisha Electricity Regulatory Commission has released a draft for the “Terms and Conditions for Determination of Generation Tariff” Regulations for 2024. The Commission is open to receiving suggestions and objections from various stakeholders, including consumers and institutions, until October 14, 2024. After considering these inputs, the Commission may modify the draft before its final publication.
The regulations define key aspects of tariff determination for power generation in Odisha. They apply to existing and future power stations in the state but exclude plants with tariffs determined by competitive bidding or those based on renewable energy sources regulated separately. These regulations emphasize encouraging competition, efficiency, and the optimal use of resources in the power sector. The scope also covers the operational aspects of power generation, including rules on calculating tariffs, the introduction of emission control systems, and auxiliary energy consumption.
The draft details how capital costs will be handled, including those for new and existing projects. For new projects, the capital cost encompasses expenditures incurred up to their commercial operation date, interest during construction, financing charges, and costs related to the emission control systems. Existing projects are subject to similar cost considerations, including renovation and modernization costs.
One of the key highlights is the tariff determination process. Generating companies can apply for tariffs for new or existing plants, with details on capital expenditure and additional expenditures. This process also includes provisions for supplementary tariffs for plants that implement emission control systems. The regulations outline procedures for the true-up of tariffs to adjust based on actual expenditures incurred during the operational period. The aim is to ensure fair and transparent tariff-setting in line with operational efficiency, cost prudence, and changing laws.
These regulations are an effort to maintain a balance between encouraging investment in the power generation sector and protecting the interests of consumers. The Commission will review the suggestions and objections before finalizing the regulations for implementation.
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