(1)In cases where, after sale/purchase of net saleable energy to/by the licensee as per the power purchase agreement approved by the Commission under REC mechanism in the mutually 1 Sub. vide Not. No. HPERC/428 dated 11 th April, 2016 published in the R.H.P. dated 13 th April, 2016 at p. 235-237 and before its substitution it stood as under:- “ (iv) the ceiling norms, except for capital cost, as specified in Chapter-IV of these Regulations” Compendium of HPERC Regulations, March 2021 15 agreed initial period(s), the net saleable energy for the residual period of the useful life of the project is to be sold to the distribution licensee under long term Power Purchase Agreement, the tariff for sale/purchase of net saleable energy during such residual period shall, save as provided in sub- regulations (2) and (3), be regulated as under:- (A) If the first Power Purchase Agreement for sale/purchase of power under REC mechanism from a SHP was executed by the parties and /or approved by the Commission before the commencement of these Regulations-
(a) where the capacity of the SHP does not exceed 5 MW, the tariff shall be `
2.95 per kWh and such rate shall be subject to adjustment in accordance with relevant orders of the Commission under which the rate of `2.95 per kWh was determined under the HPERC (Power Procurement from Renewable Sources and Co-generation by Distribution Licensee) Regulations, 2007;
(b) where the capacity of the SHP is more than 5 MW, the Commission may determine the project specific levellised tariff taking into consideration –
(i) prudent capital cost as may be admitted by the Commission which shall be further restricted to the normative capital cost allowed by the Commission for the SHPs upto 5 MW pursuant to the Himachal Pradesh Electricity Regulatory Commission (Power Procurement from Renewable Sources and Cogeneration by Distribution Licensee), Regulations, 2007;
(ii) the annual capacity utilisation factor worked out on the basis of data for 75% dependable year as per approved Detailed Project Report;
(iii) the free power (in percentage) applicable in case of the project which, for any period, shall not exceed 13% as per the Central Government Hydro Policy/Tariff Policy and shall also be subject to further restrictions in accordance with the principles enunciated in subregulation (3) of regulation 35.
(iv) the norms/parameters, other than those covered under the preceeding items (i) to (iii) fixed by the Commission for the SHPs upto 5 MW under the Himachal Pradesh Electricity Regulatory Commission (Power Procurement from Renewable Sources and Cogeneration by Distribution Licensee), Regulations, 2007 which shall be considered as ceiling norms;
(v) the liabilities relating to loan repayment, interest, depreciation etc which have been discharged or deemed as discharged during the initial period(s) in which power was being sold under REC mechanism;
(vi) savings on account of the benefit of accelerated depreciation, if availed;
and
(vii) any other factors as the Commission may consider appropriate:
Provided that the rate so determined shall be subject to a maximum limit of `2.90 per Kwh.
16 Compendium of HPERC Regulations, March 2021 (B) If the first Power Purchase Agreement for sale/purchase of power to/by the licensee under REC mechanism from a SHP is approved by the Commission on or after the commencement of these Regulations and is signed thereafter, the generic levellised tariff, as determined by the Commission for the relevant category of SHPs under these Regulations, shall be applicable.
(C) In case of projects based on renewable energy technologies, other than SHPs, the terms and conditions as may be incorporated by the Commission, to address such situations, in the terms and conditions to be fixed in accordance with regulation 17 shall be applicable.
(2) Save as provided in sub-regulation (3), in cases where any specific conditions in relation to the rate/tariff applicable for the residual period, referred to in sub-regulation(1), have been stipulated while approving the Power Purchase Agreement under REC mechanism, such conditions shall be applicable.
(3) If the circumstances so warrant, the Commission may on the merit of a case, approve the rate/tariff prevailing in any of the earlier time frames prior to the commencement of these Regulations, for sale/purchase of the net saleable energy during the residual period referred to in sub- regulation(1).