Comparison of Earlier Tariff System and Availability Based Tariff (ABT)

Labels: Availability Based Tariff (ABT) , Tariff

Comparison of Earlier Tariff System and Availability Based Tariff (ABT)

Description of item	Earlier system	Draft ABT proposal	ABT order
Capacity / Fixed Charge	Annual Fixed Charge (AFC) include : a). Interest on loan b). Depreciation c). O&M d). Return on Equity e). Income-Tax f). Interest on Working Capital	Fixed charges excluding ROE i.e. all other five items of the existing system. ROE treated separately	Capacity charge as per existing system
Basis of recovery	Recovered at 62.79% deemed PLF. 50% AFC at 0% PLF and full recovery at 68.49% deemed PLF.	FC excluding RoE recovered at 30% availability on pro-rata basis between 0% and 30% availability. ROE recovered on pro-rata availability between 30% and 70%	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 second year 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.)
Incentives	Above 68.49% deemed PLF, incentives at 1 paise/KWh for each 1% increase in PLF.	Incentive beyond target availability of 70% is as follows: (a) 70% to 85% : 0.4% of equity for each 1% increase in availability beyond 85%.	1 paise/KWh/each percentage increase in PLF of 80%/ 85% in the first/ second year for NTPC/NLC and 85% in the first year for NHPC..
Sharing of fixed cost	Based on actual energy drawls	Based on allocated capacity	Based on allocated capacity
Recovery of variable cost	Based on actual energy drawls	Based on Scheduled Energy	Based on Scheduled Energy
Deviations from schedule – UI charges	No penalties for such deviation	Varying between 0 to 360 paise/kwh for the frequency range of 50.5 Hz to 49 Hz	Varying between 0 to 420 paise/kwh for the frequency range of 50.5 Hz to 49 Hz
Norms for tariff determination	GOI Tariff notification	GoI Tariff notification	GoI Tariff notification till such time Commission finalizes its views.
Procedure for payment of capacity charge if ABT is introduced in the middle of a financial year	Not applicable	Not specified	Specified
Prolonged Outages	Included in item (2) above	Provided for payment of adjusted capacity charges	Does not provide for payment of capacity charges
Marketing of surplus energy	Not applicable	Not specified	Encouraged and will not require commission’s approval
Splitting up of capacity and energy charge for hydro stations.	Capacity charge covered depreciation and interest on loan. Energy covered ROE, income tax, O&M and interest on working capital.	Capacity charge covered depreciation and interest on loan. Energy covered ROE, income tax, O&M and interest on working capital.	Till such commission notifies peak and off-peak energy rates for hydro-stations, primary energy charge would be taken as 90% of the lowest variable charge of the thermal power station in the concerned region. The balance of total charges would be recovered as capacity charges.
Payment of dues to generators	As per agreements	As per agreements	As per orders of the commission
Applicability	All central generating stations	All central generating stations staggered region wise	i). ABT implementation is staggered region wise ii) Fixed charge recovery and basis for incentive payments revised from 1st April, 2000.iii) GOI to decide about ABT for automatic power stations.
PLF for incentives during interim period	Not applicable	Not specified.	Till the introduction of ABT in other regions and after 1.4.2000, the actual PLF for incentive purposes for NTPC shall be 80% instead of deemed PLF of 68.49%. The PLF in the first year for incentive purposes for NHPC shall be 85%.