RERC Regulations 70Chapter VI · Tariff for Hydro Power Generating Stations

Section 70 · Computation of annual capacity charges

- The two-part tariff for sale of electricity from a hydro power generating station shall comprise of recovery of annual capacity charge and primary energy charges:

(1)

Capacity Charge: The capacity charge shall be computed in accordance with the following formula:Capacity charge = (annual fixed charge - primary energy charge)Note: Recovery through Primary energy charge shall not be more than Annual Fixed Charge.

(2)

Annual Fixed Charges: Annual Fixed Charges shall be worked out as follows:

(a)

The total annual expenses and return on equity shall be worked out on the basis of expenses and return allowed in terms of Part III read with Regulations 64 to 68 of these Regulations.

(b)

The annual fixed charges shall be worked out by deducting other income specified in Regulation 69 from the annual expenses and return worked out under clause (a)above.

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