Section 5(12) in The Delhi Electricity Regulatory Commission (Terms and Conditions for Determination of Transmission Tariff) Regulations, 2011
(12)The Regulated ate Base for the ith year of the Control Period shall be computed in the following manner:RRBi = RRBi-1 + ∆ABi/2 + ∆WCi;Where,'i' is the ith year of the Control Period, i = 1,2,3,4 for the first Control Period;RRBi: Regulated Rate Base for the ith year of the Control Period;∆ABi: Change in the Regulated Rate Base in the ith year of the Control Period. This component shall be the average of the value at the beginning and end of the year as the asset creation is spread across a year and is arrived at as follows:∆ABi = Invi Di-CCiWhere,Invi: Investments projected to be capitalised during the ith year of the Control Period and approved;Di: Amount set aside or written off on account of Depreciation of fixed assets for the ith year of the Control Period;CCi: Consumer Contributions, capital subsidy/grant pertaining to the ∆ABi and capital grants/subsidies received during ith year of the Control Period for construction of service-lines or creation of fixed assets;RRBi-1: Regulated Rate Base for the Financial Year preceding the ith year of the Control period. For the first year of the Control Period, RRBi-1 shall be the Regulated Rate Base for the Base Year i.e. RRB;RRBo = OCFAo ADo CCo;Where;OCFAo:Original Cost of Fixed Assets at the end of the Base Year available for use and necessary for the purpose of the Licenced Business;ADo: Amounts written off or set aside on account of depreciation of fixed assets pertaining to the regulated business at the end of the Base Year;CCo: Total contributions pertaining to the OCFAo, made by the consumers towards the cost of construction of Transmission System by the Transmission Licensee and also includes the capital grants/subsidies received for this purpose;∆WCi: Change in normative working capital requirement in the ith year of the Control Period, from the (i-1)th year. For the first year of the Control Period(i=1),∆WCi shall be taken as the normative working capital requirement of the first year. Working capital for wheeling of electricity shall consist of(i)Receivables for two months towards transmission tariffs calculated on NATAF;(ii)Maintenance spares @ 15% of operation and maintenance expenses ; and(iii)Operation and maintenance expenses for one month.
