The CERC retained the post-tax return on equity of 15.5% and continued with availability-based fixed-cost recovery, which includes debt-servicing
CRISIL-rated utilities governed under the Central Electricity Regulatory Commission (CERC) tariff regulations will remain unaffected by the tariff norms for the block period 2014-15 to 2018-19 announced on February 21, 2014. The CERC retained the post-tax return on equity of 15.5% and continued with availability-based fixed-cost recovery, which includes debt-servicing.
Among the major changes between the draft and final regulations, the most noteworthy is the reduction of normative plant availability factor for fixed-cost recovery to 83% from 85%. This bodes well for fuel-starved thermal power plants. As for the normative line availability factor for fixed-cost recovery for transmission utilities, the extant regulations set for 2009-10 to 2013-14 continue.
As noted in CRISIL’s release of December 16, 2013, the draft tariff regulations are aimed at tightening operating norms and imposing stricter incentive structures. While CRISIL had expected the implementation of these measures to trim profitability of utilities, the core characteristics of availability-based fixed-cost recovery, pass-through of fuel cost and normative operating costs have been left unchanged. These are important in the context of systemic fuel shortage faced by thermal power plants and will continue to support the credit rating of CRISIL-rated utilities governed by the CERC tariff regulations.
Aug 12, 2022
Aug 12, 2022
Aug 12, 2022
Aug 12, 2022
Aug 12, 2022
Aug 12, 2022
Aug 12, 2022
Aug 13, 2022
Aug 13, 2022
Aug 13, 2022
Aug 13, 2022
Aug 13, 2022
Aug 13, 2022
Aug 13, 2022
Aug 13, 2022
The laws of the financial world are different from the physical world. You can have prolonged periods of time, when sanity takes a back seat and excesses happen.
R. Venkataraman Aug 20, 2021
Retail trading or day trading has exploded because of falling brokerage rates, democratization of information, higher transparency and mobile platforms.
R. Venkataraman Jun 15, 2021
My simple message for dear readers is, if you don’t have any desperate need for funds, then don’t do anything.
R. Venkataraman May 12, 2021
The blow up of a US hedge fund has resulted in WhatsApp university offering many courses on what went wrong with Bill Hwang and Archegos.
R. Venkataraman Apr 09, 2021
The expensive valuations have been sustained by strong rebound in corporate earnings which led to ~8% upgrade in FY22 Nifty EPS since October 2020.
R. Venkataraman Mar 26, 2021
We believe the interest rates are likely to have bottomed due to inflationary pressure, large government borrowings and normalizing credit growth. Hence rate sensitive sectors should be avoided in our view.
R. Venkataraman Feb 17, 2021
As markets make new highs, one gets more emails and messages, which highlight the accomplishments of traders who have found a formula for making money.
R. Venkataraman Jan 27, 2021
Data does not seem to convincingly prove that short periods of high returns are always followed by meagre returns. Only in 4 instances, we had negative returns in the subsequent year.
R. Venkataraman Jan 01, 2021
Since September end, Bankex is up 16% with large banks like ICICI Bank, Bandhan up 20-27%, Housing Finance Companies like Repco, LICHF, PNB Housing are up 50%-100% from their six-month lows.
R. Venkataraman Oct 13, 2020
Morgan Housel’s 'The Psychology of Money' explains in detail the role of human biases in investment decisions.
R. Venkataraman Sep 26, 2020
Per Order for ETF & Mutual Funds Brokerage
Per Order for Delivery, Intraday, F&O, Currency & Commodity