Section 3 in Tamil Nadu Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff for Transmission/Distribution of Electricity Under MYT Framework) Regulations, 2009
3. Multi year Tariff framework.
- [(i) Control Period: The control period under the MYT framework shall be for a duration of 3 years. The year preceding the first year of the control period shall be the base year.] [Substituted by Notification No. V1(2) 1502/2012, dated 28.11.2012.](ii)Aggregate Revenue Requirement (ARR): The licensee seeking tariff for multi year shall furnish ARR for each year of the control period in the formats specified in the Tariff Regulations along with the tariff petition.(iii)Estimated Revenue from Charges (ERC) at the existing tariff: The licensee shall furnish along with tariff petition the estimated revenue at the existing tariff for each year of the control period in the formats specified in the Tariff Regulations.(iv)[ Business Plan: [Substituted by Notification No. TNERC/MYT/18/2, dated 28-2-2011 (wef 23.3.2011)] Every licensee shall submit the business plan and power purchase plan for approval of the Commission, at least six months prior to submission of the MYT petition. The business plan shall contain projection for all activities including on going projects, new projects with the specific nature, loss reduction, effective and tamper-proof metering etc., The licensee shall also furnish the criteria adopted for such projection. The Commission shall issue the order on the business plan and the power procurement plan within four months of submission, so that the licensee is able to submit the MYT petition on the basis of the approved plan.](v)Capital Investment Plan: The licensee shall get the approval of the Capital Investment Plan for each year of the initial control period in accordance with the Regulation 17 of TNERC Tariff Regulations. It may be ensured that the approval of the Commission is obtained before tariff filing under MYT framework. The capital investment plan shall have capitalization schedules for each year of the control period. The source of finance to meet the capital expenditure in each year of the control period shall also be furnished along with Capital Investment Plan.(vi)Trajectory of specific variables: Where the performance of the licensee is sought to be improved through incentives/ disincentives, trajectory for specific variables shall be stipulated by the Commission.(vii)True up of variations in revenue and cost: The variations on .account of controllable factors like sales and power purchase shall be reviewed at the end of each year of the control period based on audited accounts of the licensee and prudence checks by the Commission.(viii)Mechanism of pass through of approved gains or losses on account of uncontrollable factors: As stipulated in Regulation 14 of Tariff Regulations, the following constitute uncontrollable costs.(a)Cost of fuel;(b)Costs on account of inflation;(c)Taxes and duties and(d)Variation in power purchase unit cost from base line level including variation on account of hydro-thermal mix in case of force majeure and adverse natural events like draught. The licensee shall file application for revision on account of such variation for Commission's consideration and orders. In respect of variations in power purchase unit cost due to hydro - thermal mix, the variations will be considered duly taking into account the Hydro Balancing Fund.(ix)[ Mechanism for sharing approved gains or losses arising out of controllable factors: [[Substituted by Notification No. TNERC/MYT/18 / 2 , dated 28-2-2011 (wef 23.3.2011)'(ix) Mechanism for sharing approved gains or losses arising out of controllable factors: The financial loss, if any, due to failure to achieve the target for the controllable costs in any of the years in the control period shall be borne by the licensees and the gains, if any, shall be shared with the beneficiaries at 50:50.]] The financial loss, if any, due to failure to achieve the target for the controllable costs in any of the years in the control period shall be borne by the licensee and the efficiency gains, if any, with respect to controllable parameters shall be shared between the licensee and the consumer in the ratio of 2 :1.](x)Annual review of performance: (a) The Commission may undertake annual review of licensee's performance at the end of each year of the control period.(b)The licensee shall submit information as part of annual review on actual performance to assess the performance vis-a-vis the targets approved by the Commission at the beginning of the control period. This shall include annual statements of its performance and accounts including latest available audited / actual accounts and the tariff worked out in accordance with these Regulations.(c)The Commission may, on an application from the licensee, may consider any modification to the forecast of the ARR for the remainder of the control period with detailed reasons for the same.
