5.2 Fixed cost of power purchase
The sources of power purchase for MSEB at present are NTPC, NPC, DPC, TEC, other states and ad-hoc purchases from captive/co-generation/wind power.

5.2.1. Fixed cost of NTPC The tariffs of NTPC
are under the regulatory regime of the CERC. At present, while the fixed costs and variable costs are separately noted in the bill, the fixed costs are actually a function of the extent of drawl by MSEB and the extent of drawl by other beneficiaries. With the introduction of ABT, the fixed costs payment to NTPC would become less uncertain. However, the exact working of ABT regime will reach steady state only after it has been in practice for some time. Only after that will it be practical to test whether the variations in fixed costs can be directly linked to some indices. In the meanwhile, the actual bills of NTPC appear to be the only valid source of determination of change in fixed costs. Therefore, it is proposed that the fixed cost of power purchase for the month, based on audited statements of bills, would be used in calculation of FOCA.

5.2.2. Fixed cost of DPC
The fixed cost of power purchase for each month is determined according to the formula in the PPA. MSEB has already furnished the PPA to the Commission. The fixed cost would vary from month to month on account of the following factors, which are not in control of MSEB:

Foreign exchange rate

US and Indian inflation indices

Number of hours in the month: Since the fixed cost is calculated based on the hourly availability, the amount of fixed cost to be paid varies from month to month, since the number of days in a month (and therefore the number of hours) would vary. While this parameter is not in control of MSEB, it is certainly predictable.

Bonuses / Rebates: In addition to the routine capacity charge, rebates (in the case of the average availability of the plant being less than the target availability) and bonus (in the case of the average availability of the plant being more than the target availability) are payable. These rebates or bonuses are calculated at the end of the Peak (October-May) period and off-peak (June-September) period based on average availabilities for the respective season as a whole.