CERC issues suo motu order on compensation mechanism for compliance with emission standards

The Central Electricity Regulatory Commission (CERC) has issued a suo-motu order on mechanism for compensation on account of change in law for compliance with revised emission standards notified by Ministry of Environment, Forest and Climate Change in respect of competitively bid thermal generating stations.

Earlier in September 2020, the commission had issued a staff paper on the issue of compensation mechanism and tariff implications on account of the revised emission norms for thermal power plants where the PPA does not have explicit provision for compensation mechanism.  The commission, after considering the comments/suggestions in response to the staff paper, has proposed a mechanism to determine the compensation. The commission has invited comments on the draft mechanism latest by April 30, 2021.


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