Section 7 in The Delhi Electricity Regulatory Commission (Terms and Conditions for Determination of Transmission Tariff) Regulations, 2011
7. Multi Year Tariff Filing Procedure.
(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 Transmission 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 Transmission 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)Capital Investment Plan: This should be commensurate with load growth and quality improvement proposed in the Business Plan. The investment plan should also include corresponding capitalisation schedule and financing plan;(b)The appropriate capital structure and cost of financing (interest on debt) and return on equity, terms of the existing loan agreements, etc;(c)Operation and Maintenance (O&M) expenses: This shall include the costs estimated for the Base Year, the actual expenses incurred in the previous control period and the projected values for each year of the Control Period based on the proposed norms for O&M cost, including indexation and other appropriate mechanisms;(d)Depreciation: Based on the fair life of the asset and capitalisation schedules for each year of the Control Period;(e)Performance Targets: A set of targets proposed for controllable items such as Availability of transmission system, transformer failure rate, and any other parameters for quality of supply. The targets shall be consistent with the Capital Investment Plan proposed by the Transmission Licensee;(f)Proposals for Non-Tariff Income with item-wise description and details;(g)Proposals in respect of income from Other Business;(h)Other Information: This shall include any other details considered appropriate by the Transmission Licensee for consideration during determination of tariff; and(i)SLDC Charges.Tariff Filing(4)The Transmission Licensee shall file an application for approval of Transmission 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 filings for Transmission Tariff shall contain the following:(a)The Transmission System or network usage forecast for each year of the Control Period, consistent with the Business Plan;(b)Proposals for transmission tariff design for each year of the Control Period, including the losses to be charged and the procedure thereof;(c)Proposal for transmission tariff rate for the each year of the Control Period supported by adequate justification;(d)Proposal for reactive energy charges;(e)Proposal for SLDC charges; and(f)Expected Revenue from the Licensed Business, Non-Tariff Income and income from Other Business and other matters considered appropriate by the Transmission Licensee.(6)The Transmission Licensee shall continue to provisionally bill beneficiaries with the tariff approved by the Commission and applicable as on 31.3.2012 for the period starting from 1.4.2012 till approval of tariff by the Commission in accordance these regulations:(7)Provided that where the tariff provisionally billed exceeds or falls short of the final tariff approved by the Commission under these regulations, the Transmission Licensee shall refund to or recover from the beneficiaries within six months along with simple interest at the rate equal to Base Rate of State Bank of India plus 150 basis points on the 1st April of the concerned/respective year.Annual Performance Review during the Control Period(8)The Transmission 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 to performance on uncontrollable parameters (Non-Tariff Income) and Controllable parameters (O&M Expense, capital investment, capitalisation, depreciation. RoCE, etc.)(9)The Licensee shall submits the revised ARR and corresponding tariff adjustment 120 days before the commencement of the Financial Year. The revised estimates shall be required because of trued up costs on account of 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.(10)The Licence shall submits detail of capital expenditure and additional capital expenditure incurred during the period under review, duly audit and certified by the auditors.(11)Where after the truing up the tariff recovered exceeds the tariff approved by the Commission under these regulations the Licensee shall refund to the beneficiaries excess amount so recovered along with simple interest at the rate equal to Base Rate of State Bank of India plus 150 basis points as on 1st April of the respective year.(12)Where after the truing up the tariff recovered is less than tariff approved by the Commission under these regulations the Licensee shall recover from the beneficiaries under-recovered amount along with the simple interest at the Rate equal to the Base Rate of State Bank of India plus 150 basis points as on 1st April of the respective year.(13)The amount under-recovered or over-recovered, along with simple interest at the rate equal to the Base Rate of State Bank of India plus 150 basis point as on 1st April of the respective year, shall be recovered or refunded by the Licence in six equal monthly instalments starting within three months from the date of the tariff order issued by the Commission after the truing up excise.Review at the end of the Control Period(14)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 third Control Period.(15)The end of the second Control Period shall be the beginning of the third 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 second Control Period and based on the actual performance, expected efficiency improvements and other factors prevalent, determine the initial values for the next Control Period.
