North Eastern Electric Power Corporation Limited

(A Government of India Enterprise)

Filing of tariff petition against the Completed Power Stations of the Corporation as per the guidelines of Central Electricity Regulatory Commission (CERC).

Billing on sale of power to the various beneficiaries.

Realisation of revenue from the various beneficiaries .

Reconciliation of Accounts with various benficiaries

Bulk Power Supply Agreement (BPSA) with the beneficiaries against completed Power Station.

Power Purchase Agreement (PPA) against upcoming Power Station.

Coordination With :-

• Ministry Of Power

• Central Electricity Authority(CEA)

• CERC

• North Eastern Regional Power Committee (NERPC)

• Regional Load Dispatch Centre (RLDC)

• SEB's, Power Departments of States

• Other Power Utilities

NEEPCO presently owns and operates total 5(five) number of Power Projects, out of which 3(three) are Hydro Power Projects and 2(two) are Thermal Power Projects, all of which are situated in the North Eastern Region of India. The total installed capacity of these projects is 1130 MW, comprising of 755 MW of Hydro Power and 375 MW of Thermal Power. The details of these projects are given below:

The Generating Stations of NEEPCO feed power at the bus-bar of the power stations, which are concerned to the regional grid. The power is being transmitted to Bulk Power Consumers through the transmission system owned and operated by the Central Transmission Utility (CTU), namely Powergrid Corporation of India Limited and State Transmission Utility (STU) s. The North Eastern Regional Power Committee and North Eastern Regional Load Dispatch Centre, who are the apex bodies designated for integrated operation of power system and proper control and management of the Regional Grid, further controls and regulates the generation and transfer of power to the respective beneficiaries.

The Bulk Power Consumers or the beneficiaries are billed against the energy made available to them from above generating stations as per the Regional Energy Accounts issued by the North Eastern Regional Power Committee based on allocation of power from the Generating Stations to the Bulk Power Consumer as given by GOI from time to time and also based on the day-to-day scheduling done by NERLDC. The terms and conditions of sale of energy by NEEPCO is governed by Bulk Power Supply Agreements / Power Purchase Agreements signed by NEEPCO with the Bulk Power Consumers i.e. the beneficiary States / SEBs. The realisation of dues from the beneficiaries is governed by the Tripartite Agreement (TPA) signed between Govt. of India, Reserve Bank of India and respective State Government.

Each operating power station of the Corporation has station- wise separate tariff. At present, the tariff of the Power Stations of is determined by the Central Electricity Regulatory Commission (CERC). The CERC determines the tariff of the power stations in terms of Annual Fixed Charges (AFC) as per the provisions of Central Electricity Regulatory Commission (Terms & Conditions of Tariff) Regulations, 2004.The following are the various components of AFC:

The Availability Based Tariff (ABT) is in 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 day-to-day basis to the Regional Load Dispatch Centre (RLDC), which is presently being operated by Central Transmission Utility (CTU) i.e. PGCIL. Against this, the beneficiaries have to give their requisition to the RLDC. The RLDC does the final generation schedule and drawal schedule to be adhered to by the generators and the beneficiaries respectively.

Unscheduled Interchange (UI) charges shall be imposed on the constituents of the Grid i.e. the generators and the beneficiaries, who deviate from the final schedule. Presently, the maximum UI rate is Rs.7.45/Kwh for under-generation by the generator or over-drawl by the beneficiaries at grid frequency of 49.00Hz and below.

The AFC is recoverable on pro-rata basis, depending on the actual Availability / Capacity Index of the Power Station against the normative Availability / Capacity Index, as stipulated in the CERC (Terms & Conditions of Tariff) Regulations, 2004. The cumulative Availability / Capacity Index for the year is computed from the daily generation availability, as declared by the generators. The AFC is again recoverable from the various Bulk Power Consumers proportionate to the share of power allocated to them from the various Power Stations.

For Hydro Stations, the AFC is to be recovered partly as Capacity Charges and partly as Primary Energy Charges on monthly basis as per the directions laid down in the Central Electricity Regulatory Commission (Terms & Conditions of Tariff) Regulations, 2004 and the tariff orders.

The Thermal Stations are entitled to recover also the fuel charge or energy charge apart from the AFC, based on the normative Heat Rate, as stipulated in the Central Electricity Regulatory Commission (Terms & Conditions of Tariff) Regulations, 2004.

At present, the Bulk Power Consumers of NEEPCO are:

The present Tariff Period is from 2004-05 to 2008-09. The earlier Tariff Period was 2001-04. Although the tariff petitions for the Tariff Period 2004-09 have been filed in respect of all the Power Stations of NEPCO, the CERC has finalized the tariff of only Doyang HEP till date. The hearings against rest of the Power Stations of NEEPCO have been conducted by CERC and the final tariff orders are expected to be issued by CERC soon. In absence of the final tariff orders against these Power Stations, the tariffs, as ordered by CERC for the year 2003-04 of the earlier Tariff Period 2001-04, are being adopted provisionally for the purpose of billing.

Since commencing of commercial generation in 1984, the energy generation and revenue earning of the Corporation have grown significantly.

NEEPCO has adopted a monthly billing cycle against the sale of power from its various Power Stations, based on the Regional Energy Accounts issue by the North Eastern Regional Power Committee. The billing is done centrally by the Commercial Department at the Corporate Headquarters on monthly basis in accordance with the rates, terms & conditions of the tariff notification issue by Government of India / CERC Power Station wise. Payments are received mostly through confirmed, revolving, irrevocable Letters of Credit opened by the beneficiaries in favour of NEEPCO and also directly through Cheques from some of the beneficiaries. Due to opening of letter of credit by the beneficiaries and also as a result of special incentives offered by NEEPCO to the beneficiaries for making prompt payments, realisation of payments has improved drastically over the years and the realization of dues stood at cent percent for last three years.

A surcharge @ 1.25% per month is levied, if payments are not made by the beneficiaries beyond a period of 60 days from the date of billing.

here is significant improvement in recovery of outstanding dues from its beneficiaries. The sales versus receipt for last five years are shown below.