The Central Electricity Regulatory Commission (CERC) has notified the monthly escalation rates for October 2025, applicable for payments related to the procurement of power by Distribution Licensees. These rates are used for Power Purchase Agreements (PPAs) entered into under specific Ministry of Power (MoP) guidelines, particularly those related to the bidding process and the SHAKTI Policy for long-term procurement from Thermal Power Stations.
The following monthly escalation rates are applicable for October 2025:
| Sr. No. | Description | Monthly Escalation Rates for Payment |
| 1 | Escalation rate for imported coal | (-)0.06% |
| 2 | Escalation rate for transportation of imported coal | (-)4.07% |
| 3 | Escalation rate for inland handling of imported coal | 0.68% |
These rates are notified in pursuance of:
Clause 5.6 (vi) of the MoP “Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees” dated 19.01.2005 (as amended).
MoP communication to CERC dated 13.04.2022.
MoP Resolution dated 11.07.2022 on an amendment to the “Guidelines for long term Procurement of Electricity from Thermal Power Stations set up on Design, Build, Finance, Own and Operate (DBFOO) basis and sourcing fuel as provided under Model Bidding Documents including allocation of coal under B (I), B(III) and B(IV) of SHAKTI (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India) Policy” dated 6.03.2019.