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93. FUEL AND POWER PURCHASE ADJUSTMENT SURCHARGE (FPPAS)
93.1 Amount on account of variation in actual Energy Charge of nth month.(due to variation in the Landed price of Coal and Gross Calorific Value of primary fuel on the basis of certificate / test report issued by reputed third party agency after prudence check etc.) vis-a-vis Energy Charge of nth month as approved in tariff order shall be determined on monthly basis by generating stations which are situated within the State and supplying power to distribution licensee of the State and the same shall be recovered through regular monthly bills issued in (n+2)th month as a line item namely fuel and other expenses.
Example -A generating company supplying power to distribution licensee shall raise the FCA for the month of April as a line item in the regular monthly bill in the month of June, for the power supplied during month of May.
452 ( 15) · 93.2 The FCA shall be calculated by the generating company for each of its thermal stations separately for each month. The FCA for a month shall be calculated as under:
FCA (in Rs.)= Scheduled energy (ex-bus) for the month X difference in monthly Energy Charge Rate (ECR), Difference in monthly ECR = ECR (T) - ECR (M) Where, Where, ECR (T): ECR specified for the particular plant in the tariff order.
ECR (M) = Computed ECR for the particular plant for the particular month as per formula given below.
ECR(M): {(GHR-SFC x CVSF) x LPPF/CVPF} x 100/(100-AUx) AUX = Normative auxiliary energy consumption in percentage.
CVPF: Gross calorific value of primary fuel as received in kCal per kg CVSF = Calorific value of secondary fuel as considered in the tariff order, in kCal per ml.
GHR: Normative Gross station heat rate allowed in the Tariff order, in kCal per kWh.
LPPF = Actual Weighted average landed price of primary fuel, in Rupees per kg SFC: Normative Specific fuel oil consumption, in ml per kWh.
The generating company shall work out the ECR on the basis of normative GSHR, normative auxiliary consumption, normative specific secondary fuel oil consumption, weighted average GCV of the coal as received and secondary fuel oil as indicated in the tariff order and actual landed price of the . primary fuel (LPPF).
Provided further that if any additional claim is raised by the generating compai:iy at the time of true up the same shall have to be supported by reasons recorded in writing and shall be subject to prudence check.
Provided that for the reasons uncontrollable for the generating company, including but not limited to non-availability of the all the certified test reports for a month, generating company shall issue provisional fuel and other expenses charge for that month based on the available reports, the final bill shall be prepared and differential amount shall be claimed in the month next to the month in which last of such report is received.
In case of part or full use of alternative source of fuel supply by coal based thermal generating stations other than as agreed by the generating company and beneficiaries in their power purchase agreement or as considered in the respective Tariff Order for determination of the ECR, on account of shortage of fuel or optimization of economical operation through blending, the use of alternative source of fuel supply shall be permitted to generating station:
Provided that where the energy charge rate based on weighteg average price of fuel upon use of alternative source of fuel supply exceeds 20% of base 452 (16) i?cffi./:-1•1~~, ~ 19l& 2023 energy charge rate as approved by the Commission, in · that event, use of alternative source of fuel supply shall be considered after prior consultation with beneficiary and approval of the Commission.
93.3 Fuel and Power Purchase Adjustment Surcharge (FPPAS) means the increase in cost of power, supplied to consumers, due to change in fuel cost, power purchase cost and transmission charges with reference to cost of supply approved by the Commission.
. Provided that FCA bill received from a generating company / station along with the power sale · bill for a particular month shall be considered as power purchase cost of the distribution company for that month only.
For Example - If a distribution company is purchasing power from a generating company on long term basis and the generating company based on the procedure detailed by the Commission claims Fuel Cost Adjustment for the prior period along with the energy bill for the month of 'April', then for the purpose of the computation of FPP AS, the distribution company shall · consider such FCA as part of power purchase cost of the month of 'April' only.
93 .4 Fuel and power purchase adjustment surcharge shall be calculated and billed to consumers, automatically, without going through regulatory approval process, on a monthly basis, according to the formula, prescribed by the Commission, subject to true up, on an annual basis, as decided by the Commission:
Provided that the automatic pass through shall be adjusted for monthly billing in accordance with this Regulation.
93 .5 Fuel and Power Purchase Adjustment Surcharge shall be computed and charged by the distribution licensee, in (n+2)th month, on the basis of actual variation, in cost of fuel and power purchase and Inter-state Transmission Charges for the power procured during the nth month and shall be recoverable from the consumers on their energy charge of n th month. For example, the fuel and power purchase adjustment surcharge on account of changes in tariff for power supplied during the month of April of any financial year · shall be comp1,1ted and billed in the month of June of the same financial year on the energy charge of April month:
Provided that in case the distribution licensee fails to compute and charge fuel and power purchase adjustment surcharge within this time line, except in case of any force majeure condition, its right for recovery of costs on account of fuel and power purchase adjustment surcharge shall be forfeited and, in such cases, the right to recovery the fuel and power purchase adjustment surcharge determined during true-up shall also be forfeited.
93.6 The distribution licensee may decide, fuel and power purchase adjustment surcharge or a part thereof, to be carried forward to the subsequent month in order to avoid any tariff shock to consumers, but the carry forward of fuel and power purchase adjustment surcharge shall not exceed a maximum duration of two months and such carry forward shall only be applicable, if the total fuel and power purchase adjustment surcharge for a Billing Month, including any carry forward of fuel and power purchase adjustment surcharge over the 452 (17) previous month exceeds twenty per· cent of variable component of approv~ tariff.
93. 7 The carry forward shall be recovered within one year or before the next tariff cycle whichever is earlier and the money recovered through fuel and power purchase adjustment surcharge shall first be accounted towards the oldest carry forward portion of the fuel and power purchase adjustment surcharge followed by the subsequent month.
93 .8 In case of carry forward of fuel and power purchase adjustment surcharge, the carrying cost at the rate of State Bank of India Marginal cost of Funds-based lending Rate plus one hundred and fifty basis points shall be allowed till the same is recovered through tariff and this carrying cost shall be trued up in the year under consideration.
93.9 Depending upon quantum of fuel and power purchase adjustment surcharge, the automatic pass through shall be adjusted in such a manner that,
(i) If fuel and power purchase adjustment surcharge:S5% of the ABR 100% cost recoverable of computed fuel and power purchase adjustment surcharge by distribution licensee shall be levied automatically using the · formula . (ii) . If fuel and power purchase adjustment surcharge>5% of the ABR 5% fuel and power purchase adjustment surcharge shall be recoverable _ automatically as per 93.9(i) above. 90% of the balance fuel and power purchase adjustment surcharge shall be recoverable automatically using the formula and the differential claim shall be recoverable after approval by the Commission during true up.
93 .10 The revenue recovered on account of pass through fuel and power purchase adjustment surcharge by the distribution licensee, shall be trued up along with .
true up of the ARR 93 .11 In case of excess / under recovery for the year against the fuel and power purchase adjustment surcharge, the same shall be recovered from/by the licensee at the time of true up along with its carrying cost.
93.12 . The distribution licensee shall submit such details, in the stipulated formats, of the variation between expenses incurred and the fuel and power purchase adjustment surcharge recovered, and the detailed computations and supporting documents, as required by the Commission, during true up of the normal tariff.
93.13 To ensure smooth implementation of the fuel and power purchase adjustment surcharge mechanism and its recovery, the distribution licensee shall ensure that the licensee billing system is updated to take this into account and a unified billing system shall be implemented to ensure that there is a uniform billing system irrespective of the billing and metering vendor through interoperability or use of open source software as available.
93) 1 The licensee shall publish all details including the fuel and power purchase ' adjustment surcharge formula, calculation of monthly fuel and power purcbase adjustment surcharge and recovery of fuel and power purchase adjustment surcharge on its .website and archive the same through a dedicated web address.
By order of the Commission Sd/- (Sudhir Kumar Kale) Deputy Secretary.
452 (18)
93.15 Computation of Fuel and Power Purchase Adjustment Surcharge:
Formula:
( A-B)*C + (D-E) Monthly FPPAS for nth Month(%)= {Z * (1- Distribution losses in¾/100)} • ABR Where, (N+2)th month means the month in which billing of fuel and power purchase adjustment surcharge component is done. This fuel and power purchase adjustment surcharge is · due to changes in tariff for the power supplied in (n)th month A is · Total units procured in (n) th Month (in kWh) from all Sources including Long-term, Medium -term and Short-term Power purchases (To be taken from the bills issued to distribution licensees B is bulk sale(inter-state sale) of power from all Sources in (n)th Month.
(in kWh) = (to be taken from provisional accounts to be issued by State Load Dispatch Centre by the 10 th day of each month and made available on SLDC website).
C is incremental Average Power Purchase Cost= Actual average Power Purchase Cost (PPC) including water charges, statutory truces, duties and cess actually paid, from all Sources in (n) month (Rs./ kWh) ( computed) - Projected average Power Purchase Cost (PPC) from all Sources (Rs./ kWh)~ (from tariff order) D Actual inter-state and intra-state Transmission Charges in the (n)th Month, (From the bills by Transcos to Discom) (in Rs) E Base Cost of Transmission Charges for (n)th. Month = (Approved Transmission Charges/12) (in Rs) Z [ { Actual · Po wet purchased from all the sources outside the State in
(n)th Month (in kWh)* (1 - Interstate transmission losses in % /100) + Power purchased from all the sources within the State(in kWh}- B} *(l -Intra state losses in %)]/100 in kWh · ABR Average Billing Rate for the year for the year (to be taken from the .Tariff Order in Rs/kWh);
Distribution Losses (in%)= Target Distribution Losses (from Tariff Order) Intra-state Losses (in%)= As per Tariff Order 93 .16 The Power Purchase Cost shall exclude any charges on account of Deviation Settlement Mechanism.
93.17 Other charges which include Ancillary Services and Security Constrained Economic Despatch shall not be included in Fuel and Power Purchase Adjustment Surcharge and adjusted through the true-up approved by the State Commission.
~. ~<Im~~. ~e:rn~~. ~~~<Im~- 2023.