The power tariff under PPA is calculated based on a cost-plus model, while maintaining the RoE at the base level on regulated equity (equity component of capital expenditure for a power plant). So, NTPC’s regulated equity increases only when a new plant is commissioned. For instance, NTPC’s capacity increased by 3% year-on-year to 61 GW in FY26, which means regulated equity and, thereby, profit should increase by only 3%.
