Each operating power station of the corporation has a stationwise tariff. At present the tariff of NHPC Power stations is approved by the Central Electricity Regulatory Commission (CERC). The CERC has approved the tariff of Bairasiul, Loktak, Salal, Tanakpur, Chamera-I, Chamera-II, Rangit & Uri Power stations for the period 1.4.2001 to 31.3.2004 on the basis of CERC (Terms and conditions of Tariff) Regulation 2001. The Commission has approved the Annual Fixed Charges (AFC) for each of these power stations except for the Chamera II for which provisional tariff has been approved.

AFC is to be recovered in the form of capacity and primary energy charges on monthly basis as per the directions laid in the tariff orders. The components of tariff (AFC) are Interest on loan, Interest on working capital, Depreciation, Advance against depreciation, O&M expenses and Return on equity.

Availability Based Tariff as ordered by CERC has been implemented w.e.f. 01.07.2002 in Western Region, 01.12.2002 in Northern Region, 01.01.2003 in Southern Region and 01.04.2003 in Eastern Region & 01.11.2003 in North Eastern Region.

In ABT regime the generator has to generate as per schedule given by Regional Load Despatch Centre (RLDC), presently being operated by Central Transmission utility (CTU) and the beneficiary (SEB) has to draw power from grid as per the schedule. Unscheduled Interchange (UI) charges are imposed on the constituents of the grid who deviate from schedule.

The CERC has issued the revised CERC (Terms & Conditions of Tariff) Regulations, 2004 on 26.03.2004 which are applicable for the period 01.04.2004 to 31.03.2009. Fresh tariff petitions of all the operating projects for the period 01.04.2004 to 31.03.2009 have since been filed by NHPC in CERC based on these regulations.The determination of tariff by the Commission based on the revised terms and conditions will take some time, till that Commission directed that billing of charges, shall be billed as per AFC as applicable on 31.03.2004 on provisional basis and shall be further subject to adjustment after final determination of tariff by the Commission in accordance with the revised terms and conditions notified on 26.03.2004.