Contents
List
of Annex
Abbreviations
Executive Summary
CHAPTER
1. ELECTRICITY TARIFFS - HISTORY AND
CRITIQUE
1.1 Introduction
1.2 Indian Electricity Act,
1910
1.3 Electricity (Supply)
Act, 1948
1.4 K.P.Rao Committee
1.5 Norms for
Independent Power Producers
1.6 Transmission tariffs
1.7 Conclusion
2. THE POLICY FRAME WORK
2.1 Introduction
2.2 The policy framework
1948 to 1975
2.3 The policy framework
1975 to 1991
2.4 The policy
framework 1991 and beyond
2.4.1.1 Regulatory
reform
2.4.1.2 Market reform
2.4.1.3 Optimisation
of supply profile
2.4.1.4 Institutional
reform
2.5 Conclusion
3. MARKETS AND COMPETITION
3.1 Introduction
3.2 Market potential
3.2.1 Demand
3.2.2 Supply
3.3 Products
3.4 Trade in power
3.5 Institutional arrangements
3.6 The potential for
competition
3.6.1 Imperfections in the Indian
Power Sector
3.6.2 Competition
in Generation
3.6.3 Competition
in Transmission
3.7 Conclusion
4. TARIFF SETTING PRINCIPLES,
METHODS AND ISSUES
4.1 Introduction
4.2 Functions of the
Central Commission
4.3 Tariff Guidelines
4.4 Role in Tariff Setting
4.5 The Process of Tariff
Setting
4.6 Principles of Tariff
Setting
4.7 Objectives of Tariff
Setting
4.8 Options in Regulatory
Methods
4.8.2 Rate of Return
Regulation (RoR) / Cost of Service
4.8.3 Performance based Regulation
(PBR)
4.8.4 Hybrid and sliding scale
method in PBR
4.8.5 RPI-X
4.8.6 Competitive
Bidding
4.8.7 Marginal Cost based Pricing
Methods
4.9 Issues in Tariff Setting
4.9.1 Rate of
Return and Risk
4.9.2 Information
requirements
4.9.3 Tariff Entity
4.9.4 Treatment
of partially completed/commissioned Stations
4.9.5 Periodicity
of Tariff Setting
4.9.6 Dealing with
change between tariff filing periods
4.9.7 Retrospective adjustment of
Tariffs
4.9.8 Efficiency of operational
and cost norms
4.9.9 Treatment of depreciation
and asset life
4.9.10 Allocation
of common overheads
4.9.11 Treatment of
Taxes
4.9.12 Linkages between tariff and
payments
4.9.13 Adoption of
multiple tariff setting methodologies
4.10 Conclusion
5. GENERATION TARIFFS
5.1 Introduction
5.2 Regulated entities in
generation
5.3 Objectives of Tariff
setting
5.4 Tariff setting strategy
5.4.1 Unbundling
of Generation Tariffs
5.4.2 Redefinition
of operational norms
5.4.3 Incentives
for Hydropower
5.4.4 Reactive energy charge
5.4.5 Introduction of
competition and power markets
5.5 Issues in Generation
Tariffs
5.6 Conclusion
6. TRANSMISSION TARIFFS
6.1 Introduction
6.2 Regulated Entities and
Services
6.3 Objectives
of tariff setting in transmission
6.4 Unbundling
of transmission costs and services
6.4.2 Services which
impose a fixed cost on the system
6.4.3 Services which
impose a variable cost on the system
6.5 Types of transmission
contracts
6.6 Strategies
in tariff setting for transmission
6.7 Issues in transmission
pricing
6.8 Conclusion |