Rajasthan: RERC Revises PLF Formula For Tariff Determination

Rajasthan: RERC Revises PLF Formula For Tariff Determination

The Rajasthan Electricity Regulatory Commission (RERC) has now planned to revise the Plant Load Factor (PLF) formula to integrate more factors in the determination of tariffs. The state power regulator in while hearing the suggestions of the stakeholders over its draft RERC (Terms and Conditions for Determination of Tariff) Regulations 2025 passed the order.

The Commission said that it agreed to consider the auxiliary energy consumption while accounting for PLF. Earlier, during the hearing on the issue, RVUN had raked up the issue of the implication of auxiliary energy consumption for the emission control system or AUXe and demanded a revision. Demands were also made for the verification of PLF bythe independent agency based on the State Load Despatch Center (SLDC).

Stakeholders’ views 

“CEEP further recommended that the Commission adopt a methodology for determining the target PLF that incorporates key factors such as plant age, technology, operational efficiency, and grid demand. This would ensure fair and realistic performance benchmarks that align PLF targets with both the plant‟s operational capabilities and the system’s needs,” the order noting the submissions of CEEP read.

RERC said that during the stakeholders’ submissions, Prayas Energy Group requested to: -(i) Consider availability-linked AFC recovery for peak/off peak hour and high/ low demand season – Ensure peak/off-peak hours and high/low demand season for TPP operations is defined based on net load instead of overall load (iii)Consider varying PLF incentives across high/low demand season and peak/off peak hours based on net load.

RERC Final View On PLF Formula 

In its final judgment on the issue, RERC said, “The Commission agrees with the suggestion of Stakeholders, that due to the implication of ‘Auxiliary energy consumption for emission control system’ or ‘AUXen’, the Plant Load Factor formula need to be revised. Accordingly, the Commission has made suitable modifications in
Regulation 2 (a)(54) of the draft RERC Tariff Regulations,2025 as follows:

Plant Load Factor (%) N = 10000 x Σ AGi / {N x IC x (100 – AUXn- AUXen)} % i=1

Where, N = number of time blocks in the given period; AGi = Actual ex-bus Generation in MW for the ith time block in such period; IC = Installed Capacity of the Generating Station in MW; AUXn = Normative Auxiliary Consumption in MW, expressed as a percentage of gross generation; and AUXen = Normative auxiliary energy consumption for emission control system as a percentage of gross energy generation, wherever applicable.