State of Maharashtra - Act
The Maharashtra Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2005
MAHARASHTRA
India
India
The Maharashtra Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2005
Rule THE-MAHARASHTRA-ELECTRICITY-REGULATORY-COMMISSION-TERMS-AND-CONDITIONS-OF-TARIFF-REGULATIONS-2005 of 2005
- Published on 23 August 2005
- Commenced on 23 August 2005
- [This is the version of this document from 23 August 2005.]
- [Note: The original publication document is not available and this content could not be verified.]
1. Short title, extent and commencement.
- 1.1 These Regulations may be called the Maharashtra Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2005.2. Definitions.
- 2.1 In these Regulations unless the context otherwise requires:(a)"Accounting Statement" means for each financial year, the following statements, namely-(i)balance sheet, prepared in accordance with the form contained in Part I of Schedule VI to the Companies Act, 1956;(ii)profit and loss account, complying with the requirements contained in Part II of Schedule VI to the Companies Act, 1956;(iii)cash flow statement, prepared in accordance with the Accounting Standard on Cash Flow Statement (AS-3) of the Institute of Chartered Accountants of India;(iv)report of the statutory auditors';(v)cost records prescribed by the Central Government under Section 209(1)(d) of the Companies Act, 1956;together with notes thereto, and such other supporting statements and information as the Commission may direct from time to time;Provided that in case of any local authority engaged in the business of distribution of electricity, the Accounting Statement shall mean the items, as mentioned above, prepared and maintained in accordance with the relevant Acts or Statutes as applicable to such local authority.(b)"Act" means the Electricity Act, 2003 (36 of 2003), including amendments thereto;(c)"Allocation Statement" means for each financial year, a statement in respect of each of the separate businesses of the Licensee, showing the amounts of any revenue, cost, asset, liability, reserve or provision, which has been either;(i)charged from or to each such separate business together with a description of the basis of that charge; or(ii)determined by apportionment or allocation between the Licensed Business and every other separate business of the Licensee, together with a description of the basis of the apportionment or allocation;Provided that such allocation statement in respect of a generating station shall be maintained in a manner so as to enable tariff determination, stagewise, unit wise or for the whole generating station as provided in Regulation 27 of these Regulations.(d)"Applicant" means a Licensee or Generating Company who has made an application for determination of tariff or an application for annual performance review in accordance with the Act and these Regulations and includes a Licensee or Generating Company whose tariff is the subject of a review by the Commission either suo motu or on a petition filed by any interested or affected person or as part of an annual performance review;(e)"Aggregate Revenue Requirement" means the requirement of the Licensee for recovery, through tariffs, of allowable expenses and return on capital pertaining to his Licensed Business, in accordance with these Regulations;(f)"Auxiliary Consumption" in relation to a period, means the quantum of energy consumed by auxiliary equipment of the generating station and shall be expressed as a percentage of the sum of gross energy generated at the generator terminals of all the units of the generating station:and, for the purpose of these Regulations, auxiliary consumption for a thermal generating station shall include transformer losses within the generating station;(g)"Availability" in relation to a thermal generating station for any period means the average of the daily average declared capacities for all the days during that period expressed as a percentage of the installed capacity of the generating station minus normative auxiliary consumption in MW, as specified in these Regulations, and shall be computed in accordance with the following formula:NAvailability = 1000 x ∑DC1 { N x IC x (100 - AUXn) } %where - N = number of time blocks in the given periodDC = Average Declared Capacity for the ith time block in such periodIC = Installed Capacity of the generating station in MWAUX = Normative Auxiliary Consumption in MW, expressed as a percentage of gross generation(h)"Availability" in relation to a transmission system for a given period means the time in hours during that period the transmission system is capable of transmitting electricity at its rated voltage expressed in percentage of total hours in the given period and shall be calculated as provided in Annexure-II to these Regulations;(i)"Balancing and Settlement Code" refers to such code as may be stipulated by the Commission or as may be published by the State Load Despatch Centre and approved by the Commission, for the balancing of energy accounts and settlement of differences between energy scheduled and actual energy among the users of the grid in the State of Maharashtra;(j)"Block" in relation to a combined cycle thermal generating station includes combustion turbine - generators, associated waste heat recovery boilers, connected steam turbine - generators and auxiliaries;(k)"Bulk Power Transmission Agreement" means an agreement that contains the terms and conditions under which a Transmission System User is entitled to the access to an intra-State transmission system of a Transmission Licensee;(l)"Commission" means the Maharashtra Electricity Regulatory Commission;(m)"Conduct of Business Regulations" means such regulations as may be specified under clause (zl) of sub-section (2) of Section 181 read with sub-section (1) of Section 92 of the Act;(n)"Control Period" means a period comprising one or more financial years, as may be stipulated by the Commission, for submission of forecast in accordance with Part C of these Regulations;(o)"Cut-off Date" means the date of the first financial year closing after three hundred and sixty-five (365) days of the date of commissioning of a generating station;(p)"Daily Capacity Index" means the declared capacity expressed as a percentage of the maximum available capacity for the day and shall be calculated in accordance with the following formula:Daily Capacity Index = Declared Capacity (MW) x 100/Maximum Available Capacity (MW) and the term "Capacity Index" for any period shall be the average of the daily capacity indices calculated as above, for such period;(q)"Date of commissioning" means-,(i)in relation to a unit of a generating station, means the date declared by the Generating Company after demonstrating the Maximum Continuous Rating or Installed Capacity through a successful trial run;(ii)in relation to a generating station, the date of commissioning of the last unit or block of the generating station in accordance with clause (i) above; and(iii)in relation to a capital expenditure project relating to the Transmission Business, Distribution Business or Retail Supply Business of a Licensee, the date on which the project is ready to be put to commercial use;(r)"Declared Capacity" means-(i)for a thermal generating station, the capability of the generating station to deliver ex-bus electricity in MW declared by such generating station in relation to any period of the day or whole of the day, duly taking into account the availability of fuel:Provided that in case of a gas turbine generating station or a combined cycle generating station, the generating station shall declare the capacity for units and modules on gas fuel and liquid fuel separately, and these shall be scheduled separately. Total declared capacity and total scheduled generation for the generating station shall be the sum of the declared capacity and scheduled generation for gas fuel and liquid fuel for the purpose of computation of availability and Plant Load Factor respectively;(ii)for run-of-river hydro power generating stations with pondage and storage-type power stations, the ex-bus capacity in MW expected to be available from the generating station over the peaking hours of the next day, as declared by the generating station, taking into account the availability of water, optimum use of water and availability of machines and for this purpose, the peaking hours shall not be less than three (3) hours within a twenty-four (24) hour period;(iii)for purely run-of-river hydro power generating stations, the ex-bus capacity in MW expected to be available from the generating station during the next day, as declared by the generating station, taking into account the availability of water, optimum use of water and availability of machines;(s)"Deemed Generation" means the energy which a hydro power generating station was capable of generating but could not generate due to reasons beyond the control of the generating station or on account of non-availability of Transmission Licensee's transmission lines or on receipt of backing down instructions from the State Load Despatch Centre resulting in spillage of water;(t)"Design Energy" in relation to a hydro power generating station means the quantum of energy which could be generated in a 90 per cent dependable year with 95 per cent installed capacity of the generating station;(u)"Distribution Business" means the business of operating and maintaining a distribution system for supplying electricity in the area of the supply of the Distribution Licensee;(v)"Distribution Open Access Regulations" means the regulations as may be specified by the Commission under sub-section (47) of Section 2 read with sub-section (2), (3) and (4) of Section 42 of the Act;(w)"Existing Generating Station" means a generating station which had a date of commissioning prior to the date of notification of these Regulations;(x)"Expected Revenue from Tariff and Charges" means the revenue estimated to accrue to the Licensee from the Licensed Business at the prevailing tariffs;(y)"Fees and Charges Regulations" means such regulations as may be specified under clause (zp) of sub-section (2) of Section 181 read with clause (g) of sub-section (1) of Section 86 of the Act;(z)"Force Majeure Event" means, with respect to any party, any event or circumstance which is not within the reasonable control of, or due to an act or omission of, that party and which, by the exercise of reasonable care and diligence, that party is not able to prevent, including, without limiting the generality of the foregoing:(i)acts of God, including but not limited to lightning, storm, action of the elements, earthquakes, flood, drought and natural disaster;(ii)strikes, lockouts, go-slow, bandh or other industrial disturbances;(iii)acts of public enemy, wars (declared or undeclared), blockades, insurrections, riots, revolution, sabotage, vandalism and civil disturbance;(iv)unavoidable accident, including but not limited to fire, explosion, radioactive contamination and toxic dangerous chemical contamination;(v)any shutdown or interruption of the grid, which is required or directed by the State or Central Government or by the Commission or the State Load Despatch Centre; and(vi)any shut down or interruption, which is required to avoid serious and immediate risks of a significant plant or equipment failure;(za)"Generation Business" means the business of production of electricity from a generating station for the purpose of giving supply to any premises or enabling a supply to be so given;(zb)"Gross Calorific Value" in relation to a thermal generating station means the heat produced in kCal by complete combustion of one kilogram of solid fuel or one litre of liquid fuel or one standard cubic meter of gaseous fuel, as the case may be;(zc)"Gross Station Heat Rate" means the heat energy input in kCal required to generate one kWh of electrical energy at generator terminals;(zd)"Installed Capacity" means the summation of the name plate capacities of all the units of the generating station or the capacity of the generating station (reckoned at the generator terminals) as approved by the Commission from time to time;(ze)"Maximum Available Capacity" in relation to a hydro power generating station means-(i)for run-of-river hydro power generating stations with pondage and storage-type power stations, the maximum capacity in MW that the generating station can generate with all units running under prevailing conditions of water levels available for usage and flows over the peaking hours of the next day, and for this purpose, the peaking hours shall not be less than three (3) hours within a twenty-four (24) hour period;(ii)for purely run-of-river hydro power generating stations, the maximum capacity in MW that the generating station can generate with all units running under prevailing conditions of water levels available for usage and flows over the peaking hours of the next day;(zf)"New Generating Station" means a generating station with a date of commissioning on or after the date of notification of these Regulations;(zg)"Non-Tariff Income" means income relating to the Licensed Business other than from tariff, excluding any income from Other Business and, in case of the Retail Supply Business of a Distribution Licensee, excluding income from wheeling and receipts on account of cross-subsidy surcharge and additional surcharge on charges of wheeling;(zh)"Officer" means an officer of the Commission;(zi)"Other Business" means any business engaged in by a Transmission Licensee under Section 41 of the Act or by a Distribution Licensee under Section 51 of the Act for optimum utilization of the assets of such Transmission Licensee or of such Distribution Licensee;(zj)"Plant Load Factor", for a given period, means the total sent-out energy corresponding to scheduled generation during such period, expressed as a percentage of sent out energy corresponding to installed capacity in that period and shall be computed in accordance with the following formula:Ni Plant Load Factor (%) = 1000 x ∑SG1 { N x IC x (100 - AUXn) } %i = 1where - N = number of time blocks in the given periodSG = Scheduled Generation in MW for the ith time block in such periodIC = Installed Capacity of the generating station in MWAUX = Normative Auxiliary Consumption in MW, expressed as a percentage of gross generation(zk)"Rated Voltage" means the manufacturer's design voltage at which the transmission system is designed to operate or such lower voltage at which the line is charged, for the time being, in consultation with Transmission System Users;(zl)"Retail Supply Business" means the business of sale of electricity by a Distribution Licensee to his consumers in accordance with the terms of his licence;(zm)"Run-of-river power station" means a hydro power generating station with or without upstream pondage;(zn)"Scheduled Generation" at any time or for any given period or time block means the schedule of generation in MW ex-bus given by the State Load Despatch Centre;(zo)"Secretary" means the Secretary to the Commission;(zp)"Standards of Performance Regulations" means the regulations as may be specified by the Commission under Section 57 and Section 59 of the Act;(zq)"Storage type power station" means a hydro power generating station associated with large storage capacity to enable variation in generation of electricity according to demand;(zr)"Transmission Business" means the business of establishing or operating transmission lines;(zs)"Transmission Open Access Regulations" means the regulations as may be specified by the Commission under sub-section (47) of Section 2 read with Section 30 of the Act;(zt)"Transmission System User" means a person who has been allotted transmission capacity rights to access an intra-state transmission system pursuant to a Bulk Power Transmission Agreement, except as provided in the Transmission Open Access Regulations;(zu)"Unit" in relation to a thermal generating station means steam generator, steam turbine, generator and auxiliaries and in relation to a combined cycle thermal generating station, means gas turbine, generator and auxiliaries.Part A – General
3. Scope of regulation and extent of application.
- 3.1 The Commission shall determine tariff, including terms and conditions therefore, for all matters for which the Commission has the power under the Act, including in the following cases:-(i)Supply of electricity by a Generating Company to a Distribution Licensee:Provided that where the Commission believes that a shortage of supply of electricity exists, it may fix the minimum and maximum ceiling of tariff for sale or purchase of electricity in case of an agreement entered into between a Generating Company and a Licensee or between Licensees, for a period not exceeding one year;(ii)Intra-State transmission of electricity;(iii)Rates and charges for use of intervening transmission facilities, where these cannot be mutually agreed upon by the Licensees;(iv)Wheeling of electricity;(v)Retail sale of electricity:Provided that in case of distribution of electricity in the same area by two or more Distribution Licensees, the Commission may, for promoting competition among Distribution Licensees, fix only maximum ceiling of tariff for retail sale of electricity:Provided further that where the Commission has allowed open access to certain consumers under Section 42, such consumers, notwithstanding the provisions of clause (d) of sub-section (1) of Section 62, may enter into an agreement with any person for supply or purchase of electricity on such terms and conditions (including tariff) as may be agreed upon by them;(vi)Surcharge in addition to the charges for wheeling under the first proviso to sub-section (2) of Section 42 of the Act, in accordance with the Distribution Open Access Regulations;(vii)Additional surcharge on the charges for wheeling under sub-section (4) of Section 42 of the Act, in accordance with the Distribution Open Access Regulations.4. Guiding principles.
- 4.1 The Commission, while specifying the terms and conditions for the determination of tariff under these Regulations, shall be guided by the principles contained in Section 61 of the Act.5. Alternative terms and conditions.
- 5.1 A Generating Company or Licensee, as the case may be, may agree to any terms and conditions that may vary from the terms and conditions contained in these Regulations where the terms and conditions agreed upon will result in a lower total cost of supply of electricity to consumers in the State during the entire duration of the agreement of which such terms and conditions form part:Provided that such agreement shall come into effect only with the previous approval of the Commission, except where such approval is not specifically required under the Act or these Regulations.Part B – Procedure for Determination of Tariff
6. Procedures relating to making an application for determination of tariff.
- 6.1 An application for determination of tariff under the Act shall be made in such form and in such manner as specified in this Regulation, and accompanied by such fees as may be specified under the Fees and Charges Regulations.The proceedings to be held by the Commission for determination of tariff shall be in accordance with the Conduct of Business Regulations.7. Determination of generation tariff.
- 7.1 Existing generating station7.1.1Where the Commission has, at any time prior to the notification of these Regulations, approved a power purchase agreement or arrangement between a Generating Company and a Distribution Licensee or has adopted the tariff contained therein for supply of electricity from an existing generating station then the tariff for supply of electricity by the Generating Company to the Distribution Licensee shall be in accordance with such power purchase agreement or arrangement for such period as may be so approved or adopted by the Commission.7.1.2Where, as at the date of notification of these Regulations, the power purchase agreement or arrangement between a Generating Company and a Distribution Licensee for supply of electricity from an existing generating station has not been approved by the Commission or the tariff contained therein has not been adopted by the Commission or where there is no power purchase agreement or arrangement, then the supply of electricity by such Generating Company to such Distribution Licensee after the date of notification of these Regulations shall be in accordance with a power purchase agreement approved by the Commission in accordance with Part D of these Regulations:Provided that an application for approval of such power purchase agreement or arrangement shall be made by the Generating Company or the Distribution Licensee to the Commission within a period of three (3) months from the date of notification of these Regulations:Provided further that the supply of electricity shall be allowed to continue under the present agreement or arrangement, as the case may be, until such time as the Commission approves of such power purchase agreement and shall be discontinued forthwith if the Commission rejects, for reasons recorded in writing, such power purchase agreement.8. Determination of tariff for transmission, wheeling and retail sale of electricity.
- 8.1 The Commission shall determine the tariff for transmission, wheeling and retail sale of electricity based on an application made by the Licensee in accordance with the procedure contained in this Regulation 8.9. Time limit for making an application for determination of tariff.
- 9.1 An application for determination of tariff shall be made to the Commission not less than one hundred and twenty (120) days before the date on which such tariff is intended to be made effective:Provided that the date of receipt of application for the purpose of this Regulation shall be the date of intimation about receipt of a complete application in accordance with Regulation 8.4 above:Provided further that under a multi-year tariff framework,-10. Tariff Order.
- 10.1 The Commission shall, within one hundred and twenty (120) days from the receipt of a complete application and after considering all suggestions and objections received from the public:(a)issue a tariff Order accepting the application with such modifications or such conditions as may be contained in such Order; or(b)reject the application for reasons to be recorded in writing if such application is not in accordance with the provisions of the Act and the rules and regulations made thereunder or the provisions of any other law for the time being in force:Provided that an applicant shall be given a reasonable opportunity of being heard before his application is rejected.11. Adherence to Tariff Order.
- 11.1 No tariff or part of any tariff may be ordinarily amended, more frequently than once in any financial year, except in respect of any changes expressly permitted under the terms of any fuel surcharge formula as specified in Regulation 82.Part C – Multi-Year Tariff
12. Multi-year tariff framework.
- 12.1 The Commission shall determine the tariff for matters covered under clauses (i), (ii), (iv) and (v) of Regulation 3.1 above under a multi-year tariff framework with effect from April 1, 2006:Provided that the Commission may, either suo motu or upon application made to it by the applicant, exempt the determination of tariff of a Licensee or category of Licensees under the multi-year tariff framework for such period as may be contained in the Order granting such an exemption.13. Applicability.
- 13.1 The multi-year tariff framework shall apply to applications made for determination of tariff for transmission, wheeling and retail sale of electricity in the State.14. Control period.
- 14.1 The applicant shall submit a forecast of his aggregate revenue requirement and expected revenue from tariff and charges for the approval of the Commission for each financial year within a control period of five (5) financial years:Provided that for the first application made to the Commission under this Part, the control period shall be three (3) financial years i.e. April 1, 2006 to March 31, 2009.Provided further that the Commission may, based on the experience gained with implementation of multi-year tariffs in the State, extend or reduce the duration of subsequent control periods, as it may deem appropriate:Provided also that the Commission shall not so extend or reduce the duration of subsequent control periods without hearing the parties affected:Provided also that the Commission shall not extend or curtail the duration of any control period during such control period.15. Forecast.
- 15.1 The applicant shall submit the forecast of aggregate revenue requirement and expected revenue from tariff for the control period in such manner, within such time limit and accompanied by such fee payable therefore as provided in Part B of these Regulations.16. Specific trajectory for certain variables.
- 16.1 The Commission may stipulate a trajectory, which may cover one or more control periods, for certain variables having regard to the reorganization, restructuring and development of the electricity industry in the State.Provided that the variables for which a trajectory may be stipulated include, but are not limited to, generating station availability, station heat rate, transmission losses, distribution losses and collection efficiency.17. Annual review of performance.
- 17.1 Where the aggregate revenue requirement and expected revenue from tariff and charges of a Generating Company or Licensee is covered under a multi-year tariff framework, then such Generating Company or Licensee, as the case may be, shall be subject to an annual performance review during the control period in accordance with this Regulation.18. Mechanism for pass through of gains or losses on account of uncontrollable factors.
- 18.1 The approved aggregate gain or loss to the Generating Company or Licensee on account of uncontrollable factors shall be passed through as an adjustment in the tariff of the Generating Company or Licensee over such period as may be specified in the Order of the Commission passed under Regulation 17.10:19. Mechanism for sharing of gains or losses on account of controllable factors.
- 19.1 The approved aggregate gain to the Generating Company or Licensee on account of controllable factors shall be dealt with in the following manner:(a)One-third of the amount of such gain shall be passed on as a rebate in tariffs over such period as may be specified in the Order of the Commission under Regulation 17.10;(b)In case of a Licensee, one-third of the amount of such gain shall be retained in a special reserve for the purpose of absorbing the impact of any future losses on account of controllable factors under clause (b) of Regulation 19.2; and(c)The balance amount of gain may be utilized at the discretion of the Generating Company or Licensee.20. Annual determination of tariff.
- 20.1 The Commission shall determine the tariff of a Generating Company or Licensee covered under a multi-year tariff framework for each financial year during the control period, at the commencement of such financial year, having regard to the following:Part D – Electricity Purchase and Procurement
21. Applicability.
- 21.1 The regulations contained in this Part shall apply to electricity purchase and procurement by a Distribution Licensee from a Generating Company or Licensee or from any other source through agreement or arrangement for purchase of power for distribution and supply within the State.22. Power procurement guidelines.
- 22.1 A Distribution Licensee shall follow the guidelines contained in this Part with respect to:23. Long-term power procurement plan.
- 23.1 The Distribution Licensee shall prepare a five-year plan for procurement of power to serve the demand for electricity in his area of supply and submit such plan to the Commission for approval:Provided that such long-term power procurement plan shall be an annual rolling plan and the first plan period shall commence on April 1, 2006:Provided further that the long-term power procurement plan shall be submitted along with the application for determination of tariff, in accordance with Part B of these Regulations.24. Approval of power purchase agreement/arrangement.
- 24.1 Every agreement or arrangement for long-term power procurement by a Distribution Licensee from a Generating Company or Licensee or from other source of supply entered into after the date of notification of these Regulations shall come into effect only with the prior approval of the Commission:Provided that the prior approval of the Commission shall be required in accordance with this Regulation 24 in respect of any agreement or arrangement for procurement of electricity by the Distribution Licensee from a Generating Company or Licensee or from any other source of supply on a standby basis:Provided further that the prior approval of the Commission shall also be required in accordance with this Regulation 24 for any change to an existing arrangement or agreement for long-term power procurement, whether or not such existing arrangement or agreement was approved by the Commission.25. Short-term power procurement.
- 25.1 The Distribution Licensee shall undertake his power procurement during the year in accordance with the power procurement plan for such year approved by the Commission in accordance with Regulation 76.5 below.Part E – Generation
26. Applicability.
- 26.1 The regulations specified in this Part E shall apply in determining the tariff for supply of electricity to a Distribution Licensee from conventional sources of generation:Provided that determination of tariff for supply of electricity to a Distribution Licensee from non-conventional sources of generation shall be in accordance with such terms and conditions as stipulated in relevant Orders of the Commission.27. Tariff determination.
- 27.1 Tariff in respect of a generating station under these Regulations shall be determined stage-wise, unit-wise or for the whole generating station. The terms and conditions for determination of tariff for generating stations specified in this Part shall apply in like manner to stages or units, as the case may be, as to generating stations.28. Components of tariff.
- 28.1 Tariff for sale of electricity from a thermal power generating station shall comprise of two parts, namely, the recovery of annual fixed charges and energy charges.29. Multi-year tariffs.
- 29.1 The Commission may specify a trajectory under Regulation 16 for certain norms of operation for a generating station, for a Generating Company and/or for a Licensee in respect of his Generation Business:Provided that the Commission shall have regard to the provisions of any power purchase agreement or arrangement in specifying such trajectory:Provided further that where the Commission has stipulated a trajectory under Regulation 16, then the norms specified under this Part shall not apply for such variables as may be covered under such trajectory for the period covered by such trajectory.30. Capital cost.
- 30.1 Subject to prudence check by the Commission, the actual expenditure incurred on completion of the project shall form the basis for determination of the original cost of project. The original cost of project shall be determined based on the approved capital expenditure actually incurred up to the date of commissioning of the generating station and shall include capitalised initial spares subject to following ceiling norms as a percentage of the original cost as on the cut-off date:(i)Coal-based/lignite-fired generating stations - 2.5%(ii)Gas Turbine/Combined Cycle generating stations - 4.0%(iii)Hydro power generating stations - 1.5%Provided that where the power purchase agreement entered into between the Generating Company and the Distribution Licensee provides a ceiling of actual expenditure, the original cost of project shall not exceed such ceiling for the purpose of these Regulations:Provided further that in case of the existing generating stations, the actual original cost of project recorded in the books of account of the Generating Company, subject to prudence check by the Commission, shall be considered as the original cost of project for the purpose of these Regulations.31. Debt-equity ratio.
- 31.1 Existing generating stations31.1.1For the purpose of these Regulations, the amount of loan capital and equity capital shall be calculated as follows:(a)The amount of loan capital shall be equal to the sum of the outstanding balance of all long-term loans taken to finance the purchase or construction of the generating station, at the commencement of the financial year for which tariff is being determined, as reflected in the books of account of the Generating Company;(b)The amount of equity capital shall be equal to-(i)equity capital as at April 1, 2004 as determined by the Commission in accordance with the Explanation below; plus(ii)equity component of approved capital expenditure for the financial year ending March 31, 2005:Provided that in case of a Generating Company formed as a result of a transfer scheme under Section 131 of the Act, the date of the said transfer scheme shall be the effective date instead of April 1, 2004 for determination of equity capital under clause (b) above.Explanation - for the purpose of this Regulation, equity capital shall be the sum total of paid-up equity capital, preference share capital, fully/compulsorily convertible debentures (or other financial instruments with equivalent characteristics), foreign currency convertible bonds, share premium account and any reserves, available for distribution as dividend or for capitalization by way of issue of bonus shares, which have been invested in the Generation Business. The amount of any grant, revaluation reserve, development reserve, contingency reserve and contributions from customers shall not be included in the equity capital. The amount reflected in the books of account as deferred tax liability or deferred tax asset of the Generation Business shall be added or deducted, as the case may be, from the amount of equity capital.32. Loan repayment schedule.
- 32.1 The repayment schedule for the loan capital of existing generating stations calculated under Regulation 31.1 above shall be in accordance with the loan agreements.33. Norms for operation.
- 33.1 Thermal generating stations33.1.1Availability(a)Target availability for full recovery of annual fixed charges shall be 80 per cent(c)Target Plant Load Factor for incentive in accordance with Regulation 37 shall be 80 per cent33.1.2Auxiliary Energy Consumption(a)Coal-based generating stations| With cooling tower | Without cooling tower | ||
| (i) | 200 MW series | 9.0% | 8.5% |
| (ii) | 500 MW series | ||
| Steam driven boiler feed pumps | 7.5% | 7.0% | |
| Electrically driven boiler feed pumps | 9.0% | 8.5% |
| (i) | Combined cycle : | 3.0% |
| (ii) | Open cycle : | 1.0% |
| 200/210/250 MW sets | 500 MW and above sets | |
| During stabilization period | 2600 kCal/kWh | 2550 kCal/kWh |
| Subsequent period | 2500 kCal/kWh | 2450 kCal/kWh |
| Advanced Class Machines | E/EA/EC/E2 Class Machinesd | |
| Open cycle | 2685 kCal/kWh | 2830 kCal/kWh |
| Combined cycle | 1850 kCal/kWh | 1950 kCal/kWh |
| Advanced Class Machines | E/EA/EC/E2 Class Machinesd | |
| Open cycle | 3125 kCal/kWh | 1.02 x 3125 kCal/kWh |
| Combined cycle | 2030 kCal/kWh | 1.02 x 2030 kCal/kWh |
| During stabilization period | Subsequent period |
| 4.5 ml/kWh | 2.0 ml/kWh |
| During stabilization period | Subsequent period |
| 5.0 ml/kWh | 2.5 ml/kWh |
| (a) Coal-based and lignite-fired generating stations | - 180 days |
| (b) Gas turbine/combined cycle generating stations | - 90 days |
| (i) Pit head generating stations | - 0.3% |
| (ii) Non-pit head generating stations | - 0.8% |
| (i) Purely Run-of-river power stations | - 85% |
| (ii) Storage type and Run-of-river power stations with pondage | - 80% |
| (i) Purely Run-of-river power stations | - 90% |
| (ii) Storage type and Run-of-river power stations with pondage | - 85% |
34. Calculation of annual fixed charges.
- 34.1 Return on Equity Return on equity capital shall be computed on the equity capital determined in accordance with Regulation 31 at the rate of 14 per cent per annum in Indian Rupee terms.| (i) | Coal-based generating stations | |
| 200/210/250 MW sets | : Rs. 10.82 lakh/MW | |
| 500 MW and above sets | : Rs. 9.73 lakh/MW |
| (ii) | Gas Turbine/Combined Cycle generating stations other thansmall gas turbine power generating stations | |
| With warranty spares of 10 years : | Rs. 5.41 lakh/MW | |
| Without warranty spares : | Rs. 8.11 lakh/MW | |
| (iii) | Small gas turbine power generating stations : | Rs. 9.84 lakh/MW |
| (iv) | Lignite-fired generating stations : | Rs. 10.82 lakh/MW |
35. Energy charges.
- 35.1 Thermal generating stations(a)Energy charges shall cover fuel costs and shall be worked out on the basis of ex-bus energy sent out corresponding to scheduled generation as per the following formula:Energy Charges (Rs) = Rate of Energy Charges in Rs/kWh X Ex-bus energy sent out corresponding to scheduled generation for the month in kWhWhere,Rate of Energy Charges (REC) shall be the sum of the cost of normative quantities of primary and secondary fuel for one-kWh of ex-bus energy sent out corresponding to scheduled generation and shall be computed as under:| REC =| 100 {Ppx (Qp)n+ Psx (Qs)n }(100-(AUXn))| (Rs/K Wh) |
36. Charges for unscheduled interchange.
- 36.1 The generating station may be entitled to receive or shall be required to bear, as the case may be, the charges for deviations between energy sent-out corresponding to scheduled generation and actual energy sent-out, in accordance with the Balancing and Settlement Code, as may be published by the State Load Despatch Centre and approved by the Commission:Provided that the rate for determination of such charges shall be as notified by the Commission from time to time.37. Incentive.
- 37.1 Thermal generating stations Incentive shall be payable at a flat rate of 25.0 paise/kWh for ex-bus scheduled energy corresponding to scheduled generation in excess of ex-bus energy corresponding to target Plant Load Factor.38. Rebate/Late payment surcharge.
- 38.1 For payment of bills through a letter of credit on presentation, the Generating Company and Distribution Licensee may mutually agree to a maximum rebate of 2 per cent of the bill amount. If the payments are made within one week of presentation of the bill, the Generating Company and Distribution Licensee may mutually agree to a maximum rebate of 1.25 per cent of the bill amount.39. Billing and payment of charges.
- 39.1 Billing and payment of charges shall be done on a monthly basis.40. Demonstration of Declared Capacity.
- 40.1 The Generating Company may be required to demonstrate the declared capacity of its generating station as and when required by the State Load Despatch Centre. In the event the Generating Company fails to demonstrate the declared capacity, the fixed charges due to the Generating Company shall be reduced as a measure of penalty.41. Deemed generation.
- 41.1 In case of reduced generation by a hydro power generating station on account of reasons beyond the control of the generating station or on account of nonavailability of Transmission Licensee's transmission lines or on receipt of backing down instructions from the State Load Despatch Centre resulting in spillage of water, the energy charges on account of such spillage shall be payable to the Generating Company.Part F – Transmission
42. Applicability.
- 42.1 The regulations contained in this Part shall apply in determining tariffs for access to and use of the intra-State transmission system of a Transmission Licensee pursuant to a Bulk Power Transmission Agreement or other arrangement entered into with a Transmission System User on or after the date of notification of these Regulations.Provided that the Commission may deviate from the norms contained in this Part or stipulate alternative norms for particular cases, where it so deems appropriate, having regard to the circumstances of the case:Provided further that the reasons for such deviation shall be recorded in writing:Provided further that in case of an existing transmission system, the Commission shall determine the tariffs having regard to the historical performance of such transmission system and reasonable opportunities for improvement in performance, if any.43. Components of tariff.
- 43.1 The transmission charges for access to and use of the intra-State transmission system of a Transmission Licensee shall comprise the following:(a)transmission system access charges; and(b)annual transmission charges.44. Multi-year tariffs.
- 44.1 Except where exempted by the Commission, the regulations contained in Part C of these Regulations shall apply to all Transmission Licensees in the State with effect from April 1, 2006.45. Investment plan.
- 45.1 The Transmission Licensee shall submit an investment plan with full details of his proposed capital expenditure projects to the Commission for approval either along with the application for determination of tariff or separately, at such time as may be directed by the Commission:Provided that the investment plan shall be an annual rolling plan and the period covered by the plan shall coincide with the period for which forecasts/estimates are being submitted as part of such application.46. Capital cost.
- 46.1 The approved investment plan of the Transmission Licensee shall be the basis for determining the annual allowable capital cost for each financial year for any capital expenditure project initiated on or after April 1, 2005 with a value exceeding Rs Ten (10) crores.47. Debt-equity ratio.
- 47.1 Any capital expenditure incurred during a financial year on a capital expenditure project commenced on or after April 1, 2005 and/or on purchase of fixed asset on or after such date shall be assumed to be financed at a normative debt:equity ratio of 70:30, to be applied on the annual allowable capital cost for such financial year:48. Loan repayment schedule.
- 48.1 The repayment schedule for all approved loans of the Transmission Licensee as at March 31, 2005 shall be in accordance with the loan agreements:Provided that where any new loan (or additional tranche of existing loan) is taken on or after April 1, 2005 in respect of an approved capital expenditure project commenced (but not commissioned) prior to April 1, 2005, then any such loan taken till the date of commissioning of the project shall be treated as an existing loan for the purpose of recovery of interest expense under these Regulations.49. Norms for operation.
- 49.1 Target availability for full recovery of annual transmission charges| (a) | AC system :- | 98 per cent |
| (b) | HVDC bi-pole links and HVDC back-to-back stations :- | 95 per cent |
50. Calculation of aggregate revenue requirement.
- 50.1 Return on equity capital50.1.1The Transmission Licensee shall be allowed a return at the rate of 14 per cent per annum, in Indian Rupee terms, on the amount of approved equity capital:Explanation I - for the purpose of this Regulation, equity capital shall be the sum total of paid-up equity capital, preference share capital, fully/compulsorily convertible debentures (or other financial instruments with equivalent characteristics), foreign currency convertible bonds, share premium account and any reserves, available for distribution as dividend or for capitalization by way of issue of bonus shares, which have been invested in the Transmission Business. The amount of any grant, revaluation reserve, development reserve, contingency reserve and contributions from users shall not be included in the equity capital.The amount reflected in the books of account as deferred tax liability or deferred tax asset of the Transmission Business shall be added or deducted, as the case may be, from the amount of equity capital.Explanation II - for the purpose of this Regulation, the amount of equity capital as at April 1, 2005 shall be computed as follows:Equity capital as at April 1, 2004 as determined by the Commission in accordance with Explanation I above, plus Equity capital portion of the allowable capital cost, for the investments put to use in transmission business, calculated in accordance with Regulation 46 and Regulation 47 above, for the year ending March 31, 2005:Provided that in case of a Transmission Licensee formed as a result of a transfer scheme under Section 131 of the Act, the date of the said transfer scheme shall be the effective date instead of April 1, 2004 for determination of equity capital above.The amount of equity capital at the commencement of each financial year thereafter shall be computed as follows:Equity capital as at the commencement of the previous financial year, calculated in accordance with these Regulations, plus Equity capital portion of the allowable capital cost, for the investments put to use in transmission business, calculated in accordance with Regulation 46 and Regulation 47 above, for the previous financial year.50.1.2The return on equity capital shall be computed in the following manner:(a)Return at the allowable rate as per Regulation 50.1.1 above, applied on the amount of equity capital at the commencement of the financial year; plus(b)Return at the allowable rate as per Regulation 50.1.1 above, applied on 50 per cent of the equity capital portion of the allowable capital cost, for the investments put to use in transmission business, calculated in accordance with Regulation 46 and Regulation 47 above, for such financial year.50.1.3Any over-recovery or under-recovery of return on equity capital on account of variations in the annual allowable capital cost from the approved level shall be attributed to the same controllable or uncontrollable factors as have resulted in such capital cost variations.51. Non-Tariff Income.
- 51.1 The amount of non-tariff income relating to the Transmission Business as approved by the Commission shall be deducted from the aggregate revenue requirement in determining the annual transmission charges of the Transmission Licensee:Provided that the Transmission Licensee shall submit full details of his forecast of non-tariff income to the Commission in such form as may be stipulated by the Commission from time to time.52. Income from Other Business.
- 52.1 Where the Transmission Licensee has engaged in any Other Business, an amount equal to one-third of the revenues from such Other Business after deduction of all direct and indirect costs attributed to such Other Business shall be deducted from the aggregate revenue requirement in calculating the annual transmission charges of the Transmission Licensee:Provided that the Transmission Licensee shall follow a reasonable basis for allocation of all joint and common costs between the Transmission Business and the Other Business and shall submit the Allocation Statement to the Commission along with his application for determination of tariff:Provided further that where the sum total of the direct and indirect costs of such Other Business exceed the revenues from such Other Business or for any other reason, no amount shall be allowed to be added to the aggregate revenue requirement of the Transmission Licensee on account of such Other Business.53. Allocation of annual transmission charges.
- 53.1 The Transmission System Users shall share in the aggregate revenue requirement of the intra-State transmission system of the Transmission Licensee in such proportion as the transmission capacity rights of each Transmission System User bears to the total transmission capacity rights allotted in the intra-State transmission system:Provided that the charges payable by the Transmission System Users may also take into consideration factors such as voltage, distance, direction, quantum of flow and time of use, as may be specified by the Commission in its order passed under sub-section (3) of Section 64 of the Act:Provided that the charges shall be calculated on a daily basis by the Transmission Licensee and shall be billed every month, except where directed by the Commission for any Transmission System User or class of such users.| ATC | = | [ARR - NTI - OI] X [CL/SCL] |
| Where ATC | = | Annual Transmission Charges |
| ARR | = | Aggregate Revenue Requirement of the Transmission Licensee,including all allowable expenses and return on equity capital, asapproved by the Commission |
| NTI | = | Approved level of non-tariff income |
| OI | = | Approved level of income from Other Business |
| CL | = | Allotted Transmission Capacity Rights to the TransmissionSystem User |
| SCL | = | Sum of Allotted Transmission Capacity Rights to allTransmission System Users |
54. Transmission losses.
- 54.1 The energy losses in the transmission system of the Transmission Licensee, as determined by the State Load Despatch Centre and approved by the Commission, shall be borne by the Transmission System Users pro rata to their usage of the intra-state transmission system:Provided that the Commission may stipulate a trajectory for transmission losses in accordance with Regulation 16 as part of the multi-year tariff framework applicable to the Transmission Licensee:Provided that any variation between the actual level of transmission losses, as determined by the State Load Despatch Centre and the approved level shall be dealt with, as part of the annual performance review, in accordance with the mechanisms provided in Regulation 18 or Regulation 19 as the case may be:Provided also that the Transmission Licensee shall not be permitted to recover, under this Regulation, energy losses arising from theft, pilferage, failure to meter or bill for electricity transmitted.Part G – Wheeling
55. Separation of accounts.
- 55.1 Every Distribution Licensee shall make a separate application for determination of tariff for-56. Applicability.
- 56.1 The regulations contained in this Part shall apply in determining tariff payable for wheeling of electricity by a Distribution System User who has been allowed open access to the distribution system of a Distribution Licensee in accordance with the Distribution Open Access Regulations:Provided however that a Distribution System User who is directly connected to a transmission system shall not be required to pay any tariff under this Part.57. Components of tariff.
- 57.1 The wheeling charges of the Distribution Licensee shall provide for the recovery of the aggregate revenue requirement, as provided in Regulation 66 of these Regulations, relating to the Distribution Business of the Distribution Licensee for the financial year, as reduced by the amount of non-tariff income and income from Other Business and shall comprise the following:Aggregate revenue requirement:(a)Return on equity capital;(b)Income-tax;(c)Interest on loan capital;(d)Depreciation, including advance against depreciation and amortisation of intangible assets;(e)Operation and maintenance expenses;(f)Interest on working capital and deposits from consumers and Distribution System Users; and(g)Contribution to contingency reserves.Wheeling charges = Aggregate revenue requirement, as above, minus:(h)Non-tariff income; and(i)Income from Other Business, to extent specified in these Regulations.58. Multi-year tariffs.
- 58.1 Except where exempted by the Commission, the regulations contained in Part C of these Regulations shall apply to all Distribution Licensees in the State with effect from April 1, 2006.59. Investment plan.
- 59.1 The Distribution Licensee shall submit an investment plan with full details of his proposed capital expenditure projects to the Commission for approval, either along with the application for determination of tariff or separately, at such time as may be directed by the Commission:Provided that the investment plan shall be an annual rolling plan and the period covered by the plan shall coincide with the period for which forecasts/ estimates are being submitted as part of such application.60. Capital cost.
- 60.1 The approved investment plan of the Distribution Licensee shall be the basis for determining the annual allowable capital cost for each financial year for any capital expenditure project initiated on or after April 1, 2005 with a value exceeding Rs. Ten (10) crores.61. Debt-equity ratio.
- 61.1 Any capital expenditure incurred during a financial year on a capital expenditure project commenced on or after April 1, 2005 and/or on purchase of fixed asset on or after such date shall be assumed to be financed at a normative debt:equity ratio of 70:30, to be applied on the annual allowable capital cost for such year.62. Loan repayment schedule.
- 62.1 The repayment schedule for all approved loans of the Distribution Licensee as at March 31, 2005 shall be in accordance with the loan agreements:Provided that where any new loan (or additional tranche of existing loan) is taken on or after April 1, 2005 in respect of an approved capital expenditure project commenced (but not commissioned) prior to April 1, 2005, then any such loan taken till the date of commissioning of the project shall be treated as an existing loan for the purpose of recovery of interest expense under these Regulations.63. Calculation of aggregate revenue requirement.
- 63.1 Return on equity capital63.1.1The Distribution Licensee shall be allowed a return at the rate of 16 per cent per annum, in Indian Rupee terms, on the amount of approved equity capital:Explanation I - for the purpose of this Regulation, equity capital shall be the sum total of paid-up equity capital, preference share capital, fully/compulsorily convertible debentures (or other financial instrument with equivalent characteristics), foreign currency convertible bonds, share premium account and any reserves, available for distribution as dividend or for capitalization by way of issue of bonus shares, which have been invested in the Distribution Business. The amount of any grant, revaluation reserve, development reserve, contingency reserve and contribution from users shall not be included in the equity capital. The amount reflected in the books of account as deferred tax liability or deferred tax asset of the Distribution Business shall be added or deducted, as the case may be, from the amount of equity capital.Explanation II - for the purpose of this Regulation, the amount of equity capital as at April 1, 2005 shall be computed as follows:Equity capital as at April 1, 2004 as determined by the Commission, in accordance with Explanation I above, plus Equity capital portion of the allowable capital cost, for the investments put to use in distribution business, calculated in accordance with Regulation 60 and Regulation 61 above, for the year ending March 31, 2005:Provided that in case of a Distribution Licensee formed as a result of a transfer scheme under Section 131 of the Act, the date of the said transfer scheme shall be the effective date instead of April 1, 2004 for determination of equity capital above.The amount of equity capital at the commencement of each financial year thereafter shall be computed as follows:Equity capital as at the commencement of the previous financial year, calculated in accordance with these Regulations, plus Equity capital portion of the allowable capital cost, for the investments put to use in distribution business, calculated in accordance with Regulation 60 and Regulation 61 above, for the previous financial year.63.1.2The return on equity capital shall be computed in the following manner:(a)Return at the allowable rate as per Regulation 63.1.1 above, applied on the amount of equity capital at the commencement of the financial year; plus(b)Return at the allowable rate as per Regulation 63.1.1 above, applied on 50 per cent of the equity capital portion of the allowable capital cost, for the investments put to use in distribution business, calculated in accordance with Regulation 60 and Regulation 61 above, for such financial year.63.1.3Any over-recovery or under-recovery of return on equity capital on account of variations in the annual allowable capital cost from the approved level shall be attributed to the same controllable or uncontrollable factors as have resulted in such capital cost variations.64. Non-Tariff Income.
- 64.1 The amount of non-tariff income relating to the Distribution Business as approved by the Commission shall be deducted from the aggregate revenue requirement in determining the wheeling charges of the Distribution Licensee:Provided that the Distribution Licensee shall submit full details of his forecast of non-tariff income to the Commission along with his application for determination of tariff.65. Income from Other Business.
- 65.1 Where the Distribution Licensee has engaged in any Other Business, an amount equal to one-third of the revenues from such Other Business after deduction of all direct and indirect costs attributed to such Other Business shall be deducted from the aggregate revenue requirement in determining the wheeling charges of the Distribution Licensee:Provided that the Distribution Licensee shall follow a reasonable basis for allocation of all joint and common costs between the Distribution Business and the Other Business and shall submit the Allocation Statement to the Commission along with his application for determination of tariff:Provided further that where the sum total of the direct and indirect costs of such Other Business exceed the revenues from such Other Business or for any other reason, no amount shall be allowed to be added to the aggregate revenue requirement of the Distribution Licensee on account of such Other Business.66. Allocation of wheeling charges.
- 66.1 The Commission shall specify the wheeling charges of the Distribution Licensee in its Order passed under sub-section (3) of Section 64 of the Act:Provided that the charges payable by a Distribution System User under this Part G may comprise any combination of fixed charges and variable charges, as may be specified by the Commission in such Order.67. Distribution losses.
- 67.1 The Distribution Licensee shall be allowed to recover, in kind, the approved level of energy losses arising from the operation of the distribution system:Provided that the Commission may stipulate a trajectory for distribution losses in accordance with Regulation 16 as part of the multi-year tariff framework applicable to the Distribution Licensee:Provided that any variation between the actual level of distribution losses and the approved level shall be dealt with, as part of the ongoing performance review, in accordance with the mechanisms provided in Regulation 18 or Regulation 19, as the case may be:Provided also that the Commission may stipulate a time period beyond which Distribution Licensee shall not be permitted to recover, under this Regulation, energy losses arising from theft, pilferage, failure to meter or bill for electricity transmitted.Part H – Retail Sale of Electricity
68. Applicability.
- 68.1 These Regulations shall apply for determination of tariff for retail sale of electricity by a Distribution Licensee to his consumers:Provided that in case of distribution of electricity in the same area by two or more Distribution Licensees, the Commission may fix the maximum ceiling of tariff for retail sale of electricity and may be guided by principles contained in these regulations in fixing such tariff.69. Components of tariff.
- 69.1 The retail supply tariff of a Distribution Licensee shall provide for recovery of the aggregate revenue requirement of the Distribution Licensee for the financial year, as reduced by the amount of non-tariff income, income from wheeling, income from Other Business and receipts on account of cross-subsidy surcharge and additional surcharge, as approved by the Commission and comprising the following:-Aggregate revenue requirement:(a)Return on equity capital;(b)Income-tax;(c)Interest on loan capital;(d)Depreciation, including advance against depreciation and amortisation of intangible assets;(e)Cost of power generation/power purchase;(f)Transmission charges;(g)Operation and Maintenance expenses;(h)Interest on working capital and on consumer security deposits; and(i)Contribution to contingency reserves Revenue requirement from sale of electricity = Aggregate revenue requirement, as above, minus:(j)Non-tariff income;(k)Income from wheeling of electricity;(l)Income from Other Business, to extent specified in these Regulations;(m)Receipts on account of cross-subsidy surcharge; and(n)Receipts on account of additional surcharge on charges of wheeling.70. Multi-year tariffs.
- 70.1 Except where exempted by the Commission, the regulations contained in Part C of these Regulations shall apply to all Distribution Licensees in the State with effect from April 1, 2006.71. Investment plan.
- 71.1 The Distribution Licensee shall submit an investment plan with full details of his proposed capital expenditure projects to the Commission for approval, either along with the application for determination of tariff or separately, at such time as may be directed by the Commission:Provided that the investment plan shall be an annual rolling plan and the period covered by the plan shall coincide with the period for which forecasts/estimates are being submitted as part of such application.72. Capital cost.
- 72.1 The approved investment plan of the Distribution Licensee shall be the basis for determining the annual allowable capital cost for each financial year for any capital expenditure project initiated on or after April 1, 2005 with a value exceeding Rs. Ten (10) crores.73. Debt-equity ratio.
- 73.1 Any capital expenditure incurred during a financial year on a capital expenditure project commenced on or after April 1, 2005 and/or on purchase of fixed asset on or after such date shall be assumed to be financed at a normative debt:equity ratio of 70:30, to be applied on the annual allowable capital cost for such year.74. Loan repayment schedule.
- 74.1 The repayment schedule for all approved loans of the Distribution Licensee as at March 31, 2005 shall be in accordance with the loan agreements:Provided that where any new loan (or additional tranche of existing loan) is taken on or after April 1, 2005 in respect of an approved capital expenditure project commenced (but not commissioned) prior to April 1, 2005, then any such loan taken till the date of commissioning of the project shall be treated as an existing loan for the purpose of recovery of interest expense under these Regulations.75. Sales forecast.
- 75.1 The Distribution Licensee shall submit a monthly forecast of the expected sales of electricity to each tariff category and to each tariff slab within such tariff category to the Commission for approval along with the application for determination of tariff:Provided that the period covered by such sales forecast shall coincide with the period for which forecasts/estimates are being submitted as part of such application.76. Calculation of aggregate revenue requirement.
- 76.1 Return on equity capital50. per cent of the equity capital portion of the annual allowable capital cost, for the investments put to use in distribution business, calculated in accordance with Regulation 72 and Regulation 73 above, for such financial year.
76.1.3Any over-recovery or under-recovery of return on equity capital on account of variations in the annual allowable capital cost from the approved level shall be attributed to the same controllable or uncontrollable factors as have resulted in such capital cost variations.77. Non-Tariff Income.
- 77.1 The amount of non-tariff income relating to the Distribution Business and/or the Retail Supply Business as approved by the Commission shall be deducted from the aggregate revenue requirement in calculating the revenue requirement from retail sale of electricity of the Distribution Licensee:Provided that the Distribution Licensee shall submit full details of his forecast of non-tariff income to the Commission along with his application for determination of tariff.78. Income from wheeling charges.
- 78.1 The amount of any income from wheeling charges, calculated in accordance with Part G of these Regulations, as approved by the Commission, shall be deducted from the aggregate revenue requirement in calculating the revenue requirement from retail sale of electricity of the Distribution Licensee.79. Income from Other Business.
- 79.1 Where the Distribution Licensee has engaged in any Other Business, an amount equal to one-third of the revenues from such Other Business after deduction of all direct and indirect costs attributed to such Other Business shall be deducted from the aggregate revenue requirement in calculating the revenue requirement from retail sale of electricity of the Distribution Licensee:Provided that the Distribution Licensee shall follow a reasonable basis for allocation of all joint and common costs between the Distribution Business and the Other Business and shall submit the Allocation Statement to the Commission along with his application for determination of tariff:Provided further that where the sum total of the direct and indirect costs of such Other Business exceed the revenues from such Other Business or for any other reason, no amount shall be allowed to be added to the aggregate revenue requirement of the Distribution Licensee on account of such Other Business.Provide also that nothing contained in this Regulation shall apply to a local authority engaged, before the commencement of the Act, in the business of distribution of electricity.80. Receipts on account of cross-subsidy surcharge and additional surcharge on charges of wheeling.
-81. Distribution losses.
- 81.1 The Distribution Licensee shall be allowed to recover the approved level of energy losses arising from the Retail Supply Business:Provided that the Commission may stipulate a trajectory for distribution losses in accordance with Regulation 16 as part of the multi-year tariff framework applicable to the Distribution Licensee:Provided further that any variation between the actual level of distribution losses and the approved level shall be dealt with, as part of the annual performance review, in accordance with the mechanisms provided in Regulation 18 or Regulation 19, as the case may be:Provided also that the Commission may stipulate a time period beyond which Distribution Licensee shall not be permitted to recover, under this Regulation, energy losses arising from theft, pilferage, failure to meter or bill for electricity transmitted.82. Fuel surcharge adjustment.
- 82.1 With effect from the first day of September, 2005, the Distribution Licensee shall pass on adjustments, due to changes in the cost of power generation and power procured due to changes in fuel cost, through the Fuel Adjustment Cost (FAC) formula, as specified below.| FAC (Rs crores) | = | C + I + B, Where |
| FAC | = | Fuel Adjustment Cost |
| C | = | Change in cost of own generation and power purchase due tovariation in the fuel cost |
| I | = | Interest on working capital |
| B | = | Adjustment factor for over-recovery/under-recovery |
| C (Rs. Crores) = | AFC,Gen + AFC,PP, Where: |
| AFC,Gen : | Change in fuel cost of own generation. This change would becomputed based on the norms and directives of the Commission,including heat rate, auxiliary consumption, generation and powerpurchase mix, etc. |
| AFC,PP : | Change in energy charges of power procured from other sources. |
Part I – Grant of Subsidies by State Government
83. Manner of provision of subsidy by State Government.
- 83.1 With effect from the first day of September, 2005, if the State Government requires the grant of any subsidy to any consumer or class of consumers in the tariff determined by the Commission, the State Government shall pay in advance the amount to compensate the Licensee/person affected by the grant of subsidy in the manner specified in this Regulation, with prior approval of the Commission.Part J – Miscellaneous
84. Power to amend.
- 84.1 The Commission may, at anytime, vary, alter, modify or amend any provisions of these Regulations.85. Power to remove difficulties.
- 85.1 If any difficulty arises in giving effect to the provisions of these Regulations, the Commission may, by general or specific order, make such provisions not inconsistent with the provisions of the Act, as may appear to be necessary for removing the difficulty.Annexure IDepreciation Schedule| Description of Assets | Fair life (years) | Depreciation (Straight line) | ||
| A. | Land owned under full title | Infinity - | ||
| B. | Land held under lease | |||
| (a) | for investment in the land | The period of lease or the period remainingunexpired on the assignment of the lease | ||
| (b) | for cost of clearing the site | The period of lease remaining unexpired at thedate of clearing the site | ||
| C. | Assets Purchased New: | |||
| a. | Plant and machinery in generating stations including | |||
| plant foundations | ||||
| (i) | Hydro-electric | 35 | 2.57 | |
| (ii) | Steam electric | 25 | 3.60 | |
| NHRS & Waste Heat Recovery Boilers/Plants | ||||
| (iii) | Diesel-electric and gas plant | 15 | 6.00 | |
| b. | Cooling towers and circulating water systems | 25 | 3.60 | |
| c. | Hydraulic works forming part of Hydro-electric systemsincluding:- | |||
| (i) | Dams, Spillways, weirs, canals, reinforced concrete Flumesand siphons | 50 | 1.80 | |
| (ii) | Reinforced concrete pipelines and surge tanks, steelpipelines, sluice gates, steel surge (tanks) hydraulic controlvalves and other hydraulic works | 35 | 2.57 | |
| d. | Building & civil engineering works of permanentcharacter | |||
| (i) | Offices & showrooms | 50 | 1.80 | |
| (ii) | Containing thermo-electric generating plant | 25 | 3.60 | |
| (iii) | Containing hydro-electric generating plant | 35 | 2.57 | |
| (iv) | Temporary erection such as wooden structures | 5 | 18.00 | |
| (v) | Roads other than kutcha roads | 50 | 1.80 | |
| (vi) | Others | 50 | 1.80 | |
| e. | Transformers, transformer (Kiosk) sub-station equipment &other fixed apparatus (including plant foundations) | |||
| (i) | Transformers (including foundations) having a rating of 100kilo volt amperes and over | 25 | 3.60 | |
| (ii) | Others | 25 | 3.60 | |
| f. | Switchgear including cable connections | 25 | 3.60 | |
| g. | Lightning arrestors | |||
| (i) | Station type | 25 | 3.60 | |
| (ii) | Pole type | 15 | 6.00 | |
| (iii) | Synchronous condensor | 35 | 2.57 | |
| h. | Batteries | 5 | 18.00 | |
| (i) | Underground Cable including joint boxes and disconnectedboxes | 25 | 3.60 | |
| (ii) | Cable duct system | 50 | 1.80 | |
| i. | Overhead lines including supports: | |||
| (i) | Lines on fabricated steel operating at nominal voltageshigher than 66 kV | 35 | 2.57 | |
| (ii) | Lines on steel supports operating at nominal voltages higherthan 13.2 kilovolts but not exceeding 66 kilovolts | 25 | 3.60 | |
| (iii) | Lines on steel or reinforced concrete supports | 25 | 3.60 | |
| (iv) | Lines on treated wood supports | 25 | 3.60 | |
| j. | Meters | 15 | 6.00 | |
| k. | Self propelled vehicles | 5 | 18.00 | |
| l. | Air conditioning plants: | |||
| (i) | Static | 15 | 6.00 | |
| (ii) | Portable | 5 | 18.00 | |
| m. | (i) | Office furniture and fittings | 15 | 6.00 |
| (ii) | Office equipments | 15 | 6.00 | |
| (iii) | Internal wiring including fittings and apparatus | 15 | 6.00 | |
| (iv) | Street light fittings | 15 | 6.00 | |
| n. | Apparatus let on hire | |||
| (i) | Other than motors | 5 | 18.00 | |
| (ii) | Motors | 15 | 6.00 | |
| o. | Communication equipment: | |||
| (i) | Radio and high frequency carrier system | 15 | 6.00 | |
| (ii) | Telephone lines and telephones | 15 | 6.00 | |
| p. | Assets purchased second hand andassets not otherwise provided for in the Schedule | Such reasonable period as the Commissiondetermines in each case having regard to the nature, age andcondition of the assets at the time of its acquisition by theGenerating Company/Licensee |
1. Transmission System Availability shall be calculated separately for each Transmission System. The transmission elements shall be grouped into following categories for the purpose of calculation of availability of Transmission Systems :
2. The Availability of AC and HVDC portion of Transmission system shall be calculated as under:
% System Availability for AC system| o X AVo+ p X AVp+ q X AVq+ r X AVro + p + q + r| X 100 |
| s X AVs+ t X AVts + t| x 100 |
3. The weightage factor for each category of transmission elements shall be as under:
4. The availability for each category of transmission elements shall be calculated based on the weightage factor, total hours under consideration and non-available hours for each element of that category. T he formulae for calculation of Availability of each category of the Transmission elements are as per Appendix-I to this Annexure - II.
5. The transmission elements under outage due to following reasons not attributable to the transmission licensee shall be deemed to be available:
6. Outage time of transmission elements for the following contingencies shall be excluded from the total time of the element under period of consideration.
7. If the outage of any element causes loss of generation at a in-state generation stations then the outage period for that element shall be deemed to be twice the actual outage period for the day(s) on which such loss of generation has taken place.
Appendix-IFormulae for calculation of Availability of each category of transmission elements| AVO(Availability of o no. of AC lines) = | {| | |
| o o|- | ∑| Wi (Ti - TNAi)Ti| /| ∑| Wi|- | i=1 i=1 |
| AVP(Availability of s no. of HVDC pole) = | {| | |
| s s|- | ∑| Wj (Tj - TNAj)Tj| /| ∑| Wj|- | j=1 j=1 |
| AVq(Availability of q no. of ICTs) = | {| | |
| q q|- | ∑| Wk (Tk - TNAk)Tk| /| ∑| Wk|- | k=1 k=1 |
| AVr(Availability of r no. of SVCs) = | {| | |
| [ | {| | |
| r r|- | ∑| 0.5Wil (Til - TNAl)TIl| +∑| Wcl (Tcl - Wcl)TNAl|- | l=1 l=1 |
| r r|- | ∑| 0.5WIl| +∑| Wcl|- | l=1 l=1 |
| AVs(Availability of p no. of Switched Bus reactors) = | {| | |
| s s|- | ∑| Wm (Tm - TNAm)Tm| /| ∑| Wm|- | m=1 m=1 |
| AVt(Availability of t no. of HVDC Back-to-back Blocks) = | {| | |
| t t|- | ∑| Wn (Tn - TNAn)Tn| /| ∑| Wn|- | n=1 n=1 |
| Wi | = | Weightage factor forithtransmission line |
| Wj | = | Weightage factor forjthHVDC pole |
| Wk | = | Weightage factor forkthICT |
| Wll& WCl | = | Weightage factors for inductive & capacitive operation oflthSVC |
| Wm | = | Weightage factor formthbus reactor |
| Wn | = | Weightage factor fornthHVDC back to back block. |
| Ti, Tj, Tk, TIl, TCl, Tm& Tn | = | The total hours of ithAC line, jthHVDC pole, kthICT, lthSVC (InductiveOperation), lthSVC (Capacitive Operation), mthSwitched Bus Reactor & nthHVDC back-to-back blockduring the period under consideration (excluding time period foroutages not attributable to transmission licensee for reasonsgiven in Para 6 of the procedure) |
| TNAi,TNAj, TNAkTNAl,TNAl, TNAm, TNAn | = | The non-availability hours (excluding the timeperiod for outages not attributable to transmission licenseetaken as deemed availability as per Para 5 of the procedure) forithAC line, , jthHVDC pole, kthICT, lthSVC (Inductive Operation), lthSVC(Capacitive Operation), mthSwitched Bus Reactor andnthHVDC back-to-back block. |
| S.No. | Line voltage(kV) | Conductor Configuration | SIL(MW) |
| 1 | 765 | Quad Bersimis | 2250 |
| 2 | 400 | Quad Bersimis | 691 |
| 3 | 400 | Twin Moose | 515 |
| 4 | 400 | Twin AAAC | 425 |
| 5 | 400 | Quad Zebra | 647 |
| 6 | 400 | Quad AAAC | 646 |
| 7 | 400 | Tripple Snowbird | 605 |
| 8 | 400 | ACKC(500/26) | 556 |
| 9 | 400 | Twin ACAR | 557 |
| 10 | 220 | Twin Zebra | 175 |
| 11 | 220 | Single Zebra | 132 |
| 12 | 132 | Single Panther | 50 |
| 13 | 66 | Single Dog | 10 |