Section 7 in The Delhi Electricity Regulatory Commission (Terms and Conditions for Determination of Wheeling Tariff and Retail Supply Tariff) Regulations, 2011
7. Multi Year Tariff Process.
(1)The Multi Year Tariff filing shall be in such form and in such manner as may be decided by the Commission and as per the provisions of Conduct of Business Regulations.(2)The Licensee shall also submit the Multi Year Tariff filing in electronic format to the Commission.Multi-Year Filings for the Control PeriodBusiness Plan Filings(3)The Distribution Licensee shall file for the Commission?s approval, on 1st April of the year preceding the first year of the Control Period or any other date as may be directed by the Commission, a Business Plan approved by the Board of Directors. The Business Plan shall be for the entire Control Period and shall, interalia, contain;(a)Sales/Demand Forecast for each customer category and sub-categories for each year of the Control Period;(b)AT&C loss reduction trajectory and collection efficiency for each year of the Business Plan;(c)Power Procurement Plan based on the sales forecast and distribution loss trajectory for each year of the business plan period. The power procurement plan should also include Energy Efficiency and Demand Side Management measures;(d)The Capital Investment Plan shall take into account the sales/demand forecast, power procurement plan, distribution loss trajectory, targets for quality of supply, etc. The investment plan shall be consistent with the perspective plan drawn by the State Transmission Utility, and shall include the corresponding capitalisation schedule and financing plan;(e)The appropriate capital structure and cost of financing (interest on debt) and return on equity, terms of the existing loan agreements, etc;(f)The Operation and Maintenance (O&M) costs estimated for the Base Year and two years prior to the Base Year with complete details, together with the forecast for each year of the Business Plan Period based on the proposed efficiency in operating costs, norms for O&M cost allowance including indexation and other appropriate mechanism;(g)Details of depreciation based on the fair life of the asset and capitalisation schedules for each year of the Control Period;(h)A set of targets proposed for other controllable items such as working capital, quality of supply targets, etc. The targets shall be consistent with the capital investment plan proposed by the Licensee;(i)Proposals for other items such as external parameters used for indexation (inflation, etc);(j)The filings in addition to the Business Plan period shall also contain the data for the cost and revenue parameters for the 2002 2012 period.Tariff Filing(4)The Distribution Licensee shall file an application for approval of Wheeling Tariff and Retail Supply Tariff for each year of the Control Period, not less than 120 days before the commencement of the first year of the Control Period or such other date as may be directed by the Commission.(5)The Licensee shall propose capacity based Wheeling Tariff. The Licensee shall also specify the distribution losses voltage-wise to provide for adjustment of losses in the system.(6)The filings for Wheeling Tariff shall contain the following:(a)The Distribution system or network usage forecast for each year of the Control Period consistent with the Business Plan;(b)Proposals for computation of tariffs for Wheeling of electricity for each of the years of the Control Period, including the losses and the procedure thereof;(c)Proposals for Non-Tariff Income with item-wise description and details;(d)Proposals in respect of income from Other Businesses like Consultancy Services, Convergence, Training Facilities, etc;(e)The proposed Wheeling Tariff shall be voltage-wise;(f)Expected Revenue from the proposed Wheeling Tariff including additional surcharge, etc.(7)The filings for Retail Supply Tariff shall contain the following:(a)Licensee shall submit proposal for retail sale of electricity for the consumers pertaining to Retail Supply Business, which shall include tariffs for each consumer category, slab-wise and voltage wise. The proposed tariff may also be based on energy charges, demand charges, minimum charges, etc along with the tariff rationalization measures;(b)Proposals for Non-Tariff Income with item-wise description and details;(c)Each tariff proposal submitted by the Distribution Licensee shall be supported with a cost-of-service model allocating the costs of the Licensed business to each category of consumers based on voltage-wise costs and losses;(d)The tariff proposals of the Licensee should demonstrate that the tariffs are progressively reflecting the cost of supply;(e)Expected Revenue from the proposed Retail Supply Tariff, and other matters considered appropriate by the Distribution Licensee, including incentive schemes to consumers, cross subsidy surcharge, etc.Annual Performance Review (APR) during the Control Period(8)The Distribution Licensee shall submit information as part of annual review on actual performance to assess its performance vis-à-vis performance targets approved by the Commission at the beginning of the Control Period. The Licensee shall submit information on performance on uncontrollable parameters (Sales, Power Purchase, Non-Tariff Income, etc) and controllable parameters (AT&C Losses, Distribution Losses, Collection Efficiency, O&M Expenses, capital investment, capitalisation, depreciation, RoCE, etc).(9)The Licensee shall submit the revised ARR and corresponding tariff adjustments 120 days before the commencement of the Financial Year. The revised estimates shall be required because of trued-up costs on account of uncontrollable variations, revised sales and power purchase estimates, depreciation, Return on Capital Employed, incentive mechanism for exceeding the targets, and implementation of performance framework for quality of supply targets as per the prescribed formats.Review at the end of the Control Period(10)Towards the end of the Control Period, the Commission shall seek to review if the implementation of the principles laid down in these Regulations has achieved their intended objectives. While doing this, the Commission shall take into account, among other things, the industry structure, sector requirements, consumer and other stakeholder expectations and Licensee?s requirements at that point in time. Depending on the requirements of the sector to meet the objects of the Act, the Commission may revise the principles for the next Control Period.(11)The end of the Control Period shall be the beginning of the next Control Period and the Licensee shall follow the same procedure unless required otherwise by the Commission. The Commission shall analyse the performance of the Licensee with respect to the targets set out at the beginning of the Control Period and based on the actual performance, expected efficiency improvements and other factors prevalent, determine the initial values for the next Control Period.
