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State of Bihar - Section

Section 4 in Bihar Electricity Regulatory Commission (Levy and Collection of Fees and Charges by SLDC) Regulations, 2006

4. Annual SLDC fee and operating charges.

(1)Expenses incurred by the SLDC in the discharge of its functions as specified in Section 32 of the Act shall be recovered from all users viz., the Generating Companies and Licensees engaged in intra-state transmission, distribution and trading of electricity through annual fee and monthly operation charges leviable on the electricity transmitted, in MWs (megawatts), subject to the charges for a minimum of one MW.
(2)The annual SLDC fee shall be determined by the Commission after taking into account the required capital investment for setting up the SLDC. The fee will be revised only on the basis of a filing made to the Commission by SLDC to cover any investments for upgradation and/or modernization of SLDC that may be required.
(3)The basis for determination of the SLDC annual fee shall be the Capital Cost to cover the repayment of principal and payment of interest on investments in a year, plus any residual capital cost of past investments.
(4)The annual SLDC fee shall be computed as follows:
Annual SLDC Fee (Rs/MW/p.a) =| Capital Cost (CC) (in Rs.)Total Transmission capacity contracted (MW)
whereCapital Cost (CC) for a given year shall be computed as follows:
CC (in Rs.) =| Investment x r{|
1 -| I(1+r)t
|}
=| Investment x r (I+r)t(I+r)t- I
Where,Investment = Actual investment made in a year plus any residual value of previous investment(s).r = Actual rate of interest on borrowed capital or 150% of the Bank Rate, whichever is the lower.t = Number of years in which the investment is proposed to be recovered; for software, it would be 5 years and 10 years for other investments.
(5)The Operating Charges shall be fixed for a year on the basis of the filing of the SLDC and will cover:
(a)Employee cost;
(b)Administration and general charges;
(c)Repairs and Maintenance expenses; and
(d)Any other relevant costs and expenses deemed appropriate by the Commission.
(a)Employee Cost
The employee cost to be considered for the year shall be as per the approved staffing plan or the actual employee cost, whichever is lower. As a first step, SLDC shall file the staffing plan within three months from the date of notification of this Regulation. The Commission will approve the staffing plan after examining the details thereof. The approval shall be for the purpose of cost recovery through operating charges alone and for no other purpose whatsoever.
(b)Administration and General Expenses & Repairs & Maintenance Expenses. These expenses for the first Control Period will be fixed on the basis of the information filed by SLDC and accepted by the Commission. Thereafter, these will be fixed as per the norms to be determined by the Commission.
(c)Other expenses
All other expenses, not covered by Capital cost, Employee cost, Administration and General Expenses or Repairs & Maintenance expenses shall fall under this category of expenses. The SLDC shall file the details of such expenses, if any, at the time of its filings for the purpose of fixation of charges.
(6)The monthly operating charges per MW shall be computed as per the following formula:
Operating Charges (Rs/MW/pm) =| Annual operating chargesTotal Transmission Capacity Contracted (MW) x 12
(7)Variations in recovery of capital cost and operating charges over the fee and charges fixed for a year on account of variations in SLDC usage shall be adjusted in the subsequent control period, or earlier in case the variations are considered to be significant by the Commission warranting adjustment thereof before the commencement of the subsequent year or month, with financing cost at the average rate(s) of borrowing during the year(s) to which the variations relate.
(8)The SLDC shall submit periodic returns containing operational and cost data, as may be prescribed by the Commission.
(9)Short-term open access users of the State Grid shall pay such Annual fee and monthly operating charges at 25% of the long term SLDC charges per MW per hour.
(10)Annual fee and monthly operating charges recovered from short-term open access users of the State Grid shall not be considered in the determination of the Charges of the SLDC. Hence the SLDC shall maintain separate accounts for such short-term open access users.
(11)Considering the predominant fixed cost structure of SLDC, no variable charges are envisaged.