The Central Electricity Regulatory Commission (CERC) has notified the monthly escalation rates applicable for April 2025 for the purpose of payment for power procured by Distribution Licensees under the Ministry of Power (MOP) guidelines for tariff determination through bidding. Notably, the notified rates for imported coal and its associated transportation and handling charges are negative.
The notification, dated May 5, 2025 and published on May 19, 2025, is issued in accordance with Clause 5.6 (vi) of the MOP guidelines dated January 19th, 2005, as amended, along with subsequent MOP communications and resolutions related to power procurement from thermal power stations using imported coal.
The CERC has specified the following monthly escalation rates for payment in April 2025:
| Sr. No. | Description | Monthly Escalation Rates for Payment |
|---|---|---|
| 1 | Escalation rate for imported coal | (-)0.72% |
| 2 | Escalation rate for transportation of imported coal | (-)7.93% |
| 3 | Escalation rate for inland handling of imported coal | (-)0.41% |
These negative escalation rates indicate a decrease in the cost components related to imported coal for power procurement during April 2025, as per the established guidelines and Power Purchase Agreements (PPAs). This could translate to a slight reduction in the power purchase costs for distribution licensees during this period.
