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Comparison of Earlier Tariff System and Availability Based Tariff (ABT) - Prashanth Dudi
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H ome A vailability Bas ed T ariff (A BT ) T ariff C omparis on of E arlier T ariff Sys tem and A vailability Bas ed T ariff (A BT )
Comparison of Earlier Tariff System and Availability Based Tariff (ABT) Description of item Earlier system Annual Fixed Charge (AFC) include : a). Interest on loan b). Capacity / Fixed Charge Depreciation c). O&M d). Return on Equity e). IncomeTax f). Interest on Working Capital Pro-rata recovery of capacity charge for :i) NTPC stations: between 0 to 80% availability in the first year and 0 to 85% availability in the
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The purpose of pool pricing of coal was to ensure that the benefit of pooled price m echanism reaches the ultim ate consum er to whom the power will be supplied by the plants which have PPA's with DISCOMs. Do you feel this will
Benefit the Power Sector as a whole Deteriorate DISCOM financial stability Reduce Demand-Supply gap of Fuel Cannot say You may select multiple answers. Vote Show results
ABT order
Fixed charges excluding ROE i.e. all other five items of the existing system. ROE treated separately Capacity charge as per existing system
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9/12/13
Comparison of Earlier Tariff System and Availability Based Tariff (ABT) - Prashanth Dudi
second year FC excluding RoE recovered at 30% Recovered at 62.79% deemed PLF. Basis of recovery 50% AFC at 0% PLF and full recovery at 68.49% deemed PLF. availability on pro-rata basis between 0% and 30% availability. ROE recovered on pro-rata availability between 30% and 70% ii) NLC Stations Between 0 to 77% availability in the first year and 0 to 82% availability in the second year iii) NHPC Stations between 0 to 85% availability in the first year and availability in the second year to be announced by the commission separately. (Note: RoE, in all the three cases would be recoverable proportionately upto 80%, 77% and 82% for thermal, lignite and hydro power projects respectively. Beyond, this level, 100% RoE is recoverable.) Incentive beyond target av ailability Above 68.49% of 70% is 1 paise/KWh/each percentage
Category
AT&C Losses ( 1 ) Availability Based Tariff (ABT) ( 1 ) C oal C onsumption ( 1 ) Distribution ( 1 ) Generation ( 1 ) Indian Power sector ( 1 ) Installed capacity ( 1 ) RGGVY ( 1 ) Rural Electrification ( 1 ) Tariff ( 1 ) Transmission ( 1 )
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Incentives
as follows: increase in PLF of deemed PLF, (a) 70% to 80%/ 85% in incentives at 85% : the first/ 1 paise/KWh 0.4% of second year for for each 1% increase in PLF. equity for each 1% increase in av ailability beyond 85%. NTPC/NLC and 85% in the first year for NHPC..
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9/12/13
Comparison of Earlier Tariff System and Availability Based Tariff (ABT) - Prashanth Dudi
Based on Sharing of fixed cost actual energy drawls Based on Recovery of variable cost actual energy drawls
Deviations UI charges
No penalties deviation
GoI Tariff Norms for tariff determination notification till GOI Tariff notification GoI Tariff notification such time Commission finalizes its views. Procedure for payment of capacity charge if ABT is introduced in the middle of a financial year Provided for Prolonged Outages Included in item (2) above payment of adjusted capacity charges Marketing of surplus energy Encouraged and Not applicable Not specified will not require commissions approval Till such commission notifies peak and Capacity Capacity off-peak energy rates for hydro3/5
Not applicable
Not specified
Specified
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9/12/13
Comparison of Earlier Tariff System and Availability Based Tariff (ABT) - Prashanth Dudi
charge covered Splitting up of depreciation and interest capacity and energy charge on loan. Energy for hydro stations. income tax, O&M and interest on working capital.
charge covered
depreciation would be taken and interest as 90% of the on loan. Energy lowest variable charge of the thermal power concerned balance of total charges would be recovered as capacity charges.
As per agreements
As per
As per orders of
agreements the commission i). ABT implementation is staggered region wise ii) Fixed charge All central recovery and basis for incentive payments revised from 1st April, 2000.iii) GOI to decide about ABT for automatic power stations. Till the introduction of ABT in other regions and after 1.4.2000, the actual PLF for incentive
PLF for incentives period Not Not specified. during interim applicable
purposes for NTPC shall be 80% instead of deemed PLF of 68.49%. The PLF in the first year
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Comparison of Earlier Tariff System and Availability Based Tariff (ABT) - Prashanth Dudi
for incentive purposes for NHPC shall be 85%. Source: Cerebral Business Research
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