Important Changes:
- Change in payment of Generation Incentives from PAF to PLF
- Tightened station heat rate and auxiliary consumption norms.
- Deprived tax arbitrage, i.e., reimbursements by discoms for the applicable tax paid (20%) rather than normative corporation tax (33%).
- Reduction in threshold PLF for payment of generation incentives from 85% to 83%.
- Relaxation in operational efficiency parameters for aging 200MW units and recovery of water charges.
- Gross calorific value of coal in calculation of tariff is based on coal received rather than coal fired.
Benefits for End Consumers:
- Discoms will have to pay less to the generating companies as incentives are based on PLF and might reduce the tariff for end users.
- Efficiency in the utilization as result of tightened station heat rate.
Benefits for Discoms:
- Reduced burden in paying Generation incentives.
- Savings as a result of changes in tax arbitrage calculation.
Benefits for Generators:
- Increase in incentives from reduced threshold PLF
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