COMMERCIAL ACTIVITIES

Last Updated : 09/02/2018

Commercial Department

The Commercial Department at the Corporate Headquarters primarily looks after the Tariff & Revenue matters in addition to other commercial issues that arise from time to time. It is assigned with the responsibility of filing of Tariff Petitions for the Operational Power Stations of the Corporation as per the Tariff Regulations set out by the Central Electricity Regulatory Commission (CERC ).

The other important functions of the Commercial Department include:

  • Raising of bills for the energy supplied and collection of revenue.
  • Reconciliation of energy accounts.
  • Preparing, negotiating and signing of Bulk Power Supply Agreements in respect of Operating Power Stations.
  • Preparing, negotiating and signing of Power Purchase Agreements for the upcoming Power Projects.
  • Coordinating with the Ministry of Power (MOP), North Eastern Regional Power Committee (NERPC), North Eastern Regional Load Dispatch Centre (NERLDC), Beneficiary States/State Electricity Boards, Central Electricity Regulatory Commission, Central Electricity Authority and other Power Sector Utilities with regard to Tariff & Revenue matters.
  • Financial Accounting of Sales and Receipts.

Commercial Operation Milestones :

  • NEEPCO began with a Hydro Power generation with the 250 MW Kopili Hydro Electric Project, which commenced commercial generation in 1984 from its Khandong Power Station.
  • NEEPCO entered in the Thermal Power (Gas Based) map with the successful commissioning of the first Gas Based Power Project, namely the Assam Gas Based Power Project (291MW) in the state of Assam in the year 1995.
  • The second Gas Based Power project, namely the Agartala Gas Turbine Project (84MW) in the state of Tripura was commissioned in the year 1998.
  • The second Hydro Electric Project, namely the Doyang Hydro Electric Project (75MW) in the state of Nagaland was commissioned in the year 2000.
  • The Ranganadi Hydro Electric Project (405MW) in the state of Arunachal Pradesh commissioned in the year 2002 was the third Hydro Electric Project of NEEPCO.

Generating Stations of NEEPCO :

Sl. No. POWER STATION INSATLLED CAPACITY (MW) COMMERCIAL OPERATION DATE (COMMISSIONING OF LAST UNIT)
1 Khandong Power Station 2X25=50 04.05.1984
2 Kopili Power Station 4X50=200 12.07.1997
3 Kopili HEP Stage II 1X25=25 26.07.2004
4 DHEP 3X25=75 10.07.2000
5 RHEP 3X135=405 12.04.2002
Sub-Total (Hydro) 755
6 AGTPP 4X21=84 01.08.1998
7 AGBPP 3x33.5+3x30=291 01.04.1999
Sub-Total (Thermal) 375
8 Solar Power Project, TGBPP, Tripura 5 March 2015
Sub-Total (Solar) 5
Grand Total 1135

Note: The Khandong and the Kopili Power Stations form part of the Kopili Hydro Electric Project, which was approved by the Govt. of India as a single power project including the Kopili HEP Stage I Extension. However, with the introduction of two-part tariff under the CERC Regulations, the project was split into two separate generating stations. The Kopili HEP Stage II Extension was approved later and is treated as a separate power station. Hence, including the Doyang and Ranganadi HEPs, NEEPCO has constructed a total of three hydro power projects comprising five hydro generating stations.

Beneficiaries of NEEPCO :

  • Assam State Electricity Board.
  • Meghalaya Energy Corporation Ltd.
  • Tripura State Electricity Corporation Ltd.
  • Department of Power, Govt. of Arunachal Pradesh.
  • Electricity Department, Govt. of Manipur.
  • Power & Electricity Department, Govt. of Mizoram.
  • Department of Power, Govt. of Nagaland.

Salient features of Power Supply :

  • NEEPCO’s generating stations feed power at their respective bus-bar into the Regional Grid.
  • Power is transmitted to the Bulk Power Consumers through transmission systems of the Powergrid Corporation of India Ltd. (PGCIL) as well as the respective State Transmission Utilities (STU).
  • Generation and transmission of power in the region is regulated by the NERPC and the NERLDC, which are the designated apex bodies for integrated operation and management of the Regional Power System (Regional Grid).
  • Unscheduled Interchange (UI) charges is imposed on those constituents of the Grid i.e. the generators and the beneficiaries, who deviate from the final schedule

Billing and Payment:

  • Sale of energy is governed by Bulk Power Supply Agreements/Power Purchase Agreements signed by NEEPCO with the Beneficiaries.
  • Allocation of power from the Generating Stations to the Beneficiaries is as done by the Ministry of Power, Govt. of India from time to time. The day-to-day scheduling for generation and drawal of power is done by the NERLDC.
  • Beneficiaries are billed every month for the energy made available to them on the basis of the Regional Energy Accounts (REAs) issued by the NERPC .
  • Billing is done centrally by the Commercial Department in accordance with the Tariff Orders for each Power Station and terms & conditions of the CERC Regulations.
  • Realization of dues from the Beneficiaries is governed by the relevant CERC Regulations as well as the Tripartite Agreements (TPAs) signed between the Govt. of India, the Reserve Bank of India and the respective State Governments.
  • Payments are primarily received through revolving and irrevocable Letters of Credit opened by the beneficiaries in favour of NEEPCO. Additional payments (e.g. supplementary bills, surcharge, etc.) are received through cheques from the beneficiaries.
  • Rebate and surcharge are calculated as per the terms of the CERC Regulations and the TPA.

Availability Based Tariff:

The Availability Based Tariff (ABT) came into force in the North Eastern Region with effect from 01.11.2003. Under the ABT regime, the generator has to declare its generation availability on a day-to-day basis to the RLDC, which is presently being operated by Power Grid Corporation India Limited. Against this, the beneficiaries have to give their requisition to the RLDC. The RLDC draws up the final generation and drawal schedules to be adhered to by the generators and the beneficiaries respectively.

Tariff Determination Procedure:

  • Each Generating Station has a separate tariff.
  • Tariff is determined by the CERC as per the relevant CERC Regulations.
  • Tariff is in terms of Annual Capacity Charges (ACC) and Energy Charge (EC).
  • The ACC is calculated on the basis of the Annual Fixed Charges (AFC). The ECR for Hydro Stations is calculated on the basis of the AFC and Annual Design Energy, whereas for Thermal Stations it is based on the actual Landed Cost of Fuel.

The Annual fixed Charges (AFC) comprises of the following components:

  • Interest on Loan.
  • Depreciation.
  • Return on Equity.
  • Interest on Working Capital.
  • O&M Expenses.

The CERC (Terms & Conditions of Tariff) Regulations, 2009 specifies the norms and methods for computation of Capacity Charge and Energy Charge for both hydro and thermal stations. The following are some highlights:

  • It is applicable to the current Tariff Period 2009-2014
  • The Normative Annual Plant Availability Factor (NAPAF) of each generating station is specified.
  • AFC is recoverable on a ratio of the actual Plant Availability Factor (PAF) to the NAPAF.
  • The PAF for any period means the average of the daily declared capacities (DCs) for all the days during that period expressed as a percentage of the installed capacity in MW reduced by the Normative Auxiliary Energy Consumption.
  • In the case of Hydro Stations, the 50% of AFC is recoverable as Capacity Charge and the balance 50% as Energy Charge.
  • In the case of Thermal Stations, apart from the AFC, fuel charges are recoverable on the basis of the normative Heat Rate and Landed Cost of Fuel.
  • UI rates are specified in separate orders by the CERC from time to time

Petitions for the current Tariff Period 2009-14 have already been filed with the CERC in respect of all the Generating Stations of NEEPCO. As per the CERC Regulations, 2009, until finalization of tariff orders for this new Tariff Period, the tariffs as ordered by CERC for the last year of the earlier Tariff Period i.e. 2008-09 shall be adopted provisionally for the purpose of billing.

TARIFF PETITION FOR NEEPCO