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CERC notifies APPC rate for FY 2021-22

Central Electricity Regulatory Commission(CERC) recently announced the Average Pooled Power Purchase Cost(APPC) for the FY 2021-22. After addressing the stakeholders’ comments and based on the tariff orders issued by the SERCs/JERCs for FY 2020-21, the APPC at the National level has been worked out as Rs. 3.85/kWh.
It is important to note that as per the CERC(Deviation Settlement Mechanism and related matters) Regulations, 2014,  “APPC rate decided by the CERC is applicable to the wind or solar generators that are regional entities and selling power under open access, which is not accounted for RPO compliance of obligated entities, and for captive power plants where PPAs do not exist, settlement shall be done at APPC determined at the national level.” In pursuance of this provision, the Commission is required to determine the national level APPC.
Following the trend of the last few years, CERC again increases the APPC for FY 2021-22 compared to the previous year. As shown in the Graph below, the CERC approved APPC rate has been increasing every year by 1-3%.