Power Tariffs in India-2014

 Published On: Mar, 2014 |    No of Pages: 150+Approx. |  Published By: SNP Infra Research solutions | Format: PDF   |   Free Sample Report

With CERC Draft Regulations for the control period 2014-19 already rolled in and public hearing conducted the final regulations are expected to be in light by March, 2014. The draft regulations if found implemented, without any modification/relaxation can lower the power tariffs existing in the country. The calculations and estimations reveal that the proposed regulations may bring down the burden of tariff by a quantum of 5-6% on the consumers. This would mean a marginal relief to consumers but it would constrain the revenues of both Private and Government generation companies in India, viz. NTPC, NHPC, Tata Power and Lanco etc.

The negative impact would be observed for the power producers as the draft regulations would see generation based incentives linked to plant load factor (PLF) instead of currently existing plant availability factor (PAF). This if implemented would find the revenues of all the power producers sink, especially the central power producers which may vary in the range 7-15%. Also, in addition the draft regulations do not allow grossing up of taxes. Companies such as NTPC are allowed tax benefit on assets under Section 80 IA and, therefore, the effective tax rate is lower than the corporate tax rate. Henceforth, NTPC may have to shell out INR. 600-800 crore as an additional tax burden. In this milieu, the impact analysis of the regulations on power tariffs coupled with the factual data on the most recent power tariff’s applicable on a countrywide basis was an imperative.

By meticulously examining the draft regulations and deeply analysing the possible impacts on all the stakeholders, SNP Infra Research attempts to blend the factual power tariff data and present a dossier which would be first of its kind and would enable clients with reliable insights and better understanding of the power tariff dynamics in the country. The key queries which find answer in this report are: What is likely rationale behind tariff calculations followed in India for 2014-19? In this dossier SNP Infra Research delves deep to and most exhaustively examines the draft regulations and its key impacts on the stake holders with a comparison of current and the upcoming regulation. Through this report, SNP Infra Research attempts to unveil the pressure on the power generation companies with incentives linked to PLF instead of PAF and in the current fuel scarcity prevalent in the country.  Also, what would be the cost of power supply and cost of procurement vis-à-vis from power distribution utility’s perspective is mapped in detail?

Queries like these and many more find their solutions in the virtue of this report which is to explore how the Indian electricity generation sector would respond to the new tariff norms. The report also analyses current power tariffs prevalent in all the states of India with utility wise status. The report provides highly reliable datasets and excellent insights on power tariffs and is a must buy for all allied stakeholders in the business value chain of power generation to sale. 

PART I: OVERVIEW OF TARIFFS
i. Introduction
„How Is Tariff Calculated?
„Design of Tariffs
Fixed Component
• RoE
• Depreciation
• Interest on Loan
• Interest on Working Capital
• O&M Costs
Variable Component
• Fuel Charge
ii. National Tariff Policy (NTP)
iii. CERC Draft Tariff Regulations 2014-19 for Thermal Power Stations
iv. Comparison of Tariff Regulations 2009-14 and 2014-19
v. Impact of new Operating norms
vi. View of Key Stake Holder & SNP Analysis on the Draft Tariff Regulations 2014-19
vii. Power Distribution in India
„Cost of Supply
Under Unbundled state structure
Private Discoms
Franchise
„Power Procurement Cost
Under Unbundled state structure
Private Discoms
Franchise

PART II: LATEST TARIFF DATA
viii. SCHEDULE OF RETAIL SUPPLY TARIFF – (FY 2013-14 VS FY 2012-13)
„Andhra Pradesh
Assam
Bihar
Chhattisgarh
Daman and Diu
Delhi
Goa and Union Territories
Gujarat
Haryana
Himachal Pradesh
Jammu and Kashmir
Jharkhand
Karnataka
Kerala
Madhya Pradesh
Maharashtra
Manipur
Meghalaya
Mizoram
Orissa
Punjab
Rajasthan
Tamil Nadu
Tripura
Uttar Pradesh
Uttarakhand
West Bengal

Annexure

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