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What are the components of Bulk Electricity tariff of Hydro Plants?

April 26, 2017bulk components electricity Hydro plants tariff

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What are the components of Bulk Electricity tariff of Hydro Plants?

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Hydro tariff means Annual Fixed Charges (AFC) in respect of each Hydro Generating Stations which is determined by the appropriate Regulatory Electricity Commission. The components of AFC are: 1. Interest on Loan Capital 2. Depreciation & Advanced Against Depreciation 3. Return on Equity 4. Operation and Maintenance expenses 5. Interest on Working Capital. The AFC is recovered in the form of Capacity and Primary Energy Charges.