Madhya Gujarat Vij Company Limited
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GUJARAT ELECTRICITY REGULATORY COMMISSION Tariff Order Truing up for FY 2011-12 and Determination of Tariff for FY 2013-14 For Madhya Gujarat Vij Company Limited Case No. 1285 of 2013 16th April 2013 1st Floor, Neptune Tower, Opp.: Nehru Bridge, Ashram Road Ahmedabad-380 009 (Gujarat), INDIA Phone: +91-79-26580350 Fax: +91-79-26584542 E-mail: [email protected] : Website www.gercin.org GUJARAT ELECTRICITY REGULATORY COMMISSION (GERC) AHMEDABAD Tariff Order Truing up for FY 2011-12 and Determination of Tariff for FY 2013-14 For Madhya Gujarat Vij Company Limited Case No. 1285 of 2013 16th April 2013 Madhya Gujarat Vij Company Limited Truing up for FY 2011-12 and Determination of Tariff for FY 2013-14 CONTENTS 1. Background and Brief History ......................................................... 1 1.1 Background ................................................................................................................ 1 1.2 Madhya Gujarat Vij Company Limited (MGVCL) .......................................................... 2 1.3 Commissions Order for the second Control period ...................................................... 3 1.4 Admission of the current petition and public hearing process ....................................... 3 1.5 Contents of this order .................................................................................................. 4 1.6 Approach of this order ................................................................................................ 5 2. Summary of MGVCL’s Submission ................................................. 7 2.1 Actuals for FY 2011-12 submitted by MGVCL ............................................................. 7 2.2 Summary of projected revenue gap till FY 2011-12 ..................................................... 7 2.3 Summary of projected revenue gap for FY 2013-14 .................................................... 8 2.4 MGVCL‟s request to the Commission: ......................................................................... 8 3. Objections raised by various stakeholders, MGVCL response and Commission’s comments ..................................................... 10 3.1 Public response to the Petition ................................................................................. 10 3.2 Common Objections / Suggestions to all DISCOMs ................................................. 10 3.3 Objections / Suggestions specific to MGVCL ............................................................ 36 4. Truing up for FY 2011-12 ............................................................... 45 4.1 Energy sales .............................................................................................................. 45 4.2 Distribution Losses .................................................................................................... 46 4.3 Energy Requirement .................................................................................................. 47 4.4 Power purchase cost ................................................................................................. 48 4.4.1 Gains / losses due to distribution losses ............................................................. 50 4.5 Fixed Charges ........................................................................................................... 52 4.5.1 Operations and Maintenance (O&M) expenses for FY 2011-12 .......................... 52 4.5.2 Employee Cost ................................................................................................... 53 4.5.3 Repairs and Maintenance (R&M) expenses ........................................................ 54 4.5.4 Administration and General (A&G) expenses ...................................................... 55 4.5.5 Other Debits ........................................................................................................ 56 4.5.6 Extraordinary Items ............................................................................................. 56 4.5.7 Net prior period expenses / income ..................................................................... 56 4.5.8 Other expenses capitalized ................................................................................. 57 4.5.9 Capital expenditure, Capitalization and Funding of CAPEX ................................ 58 4.5.10 Depreciation ...................................................................................................... 59 4.5.11 Interest and Finance charges ............................................................................ 61 4.5.12 Interest on Working Capital ............................................................................... 64 4.5.13 Provision for bad debts ..................................................................................... 65 Gujarat Electricity Regulatory Commission Page v April 2013 Madhya Gujarat Vij Company Limited Truing up for FY 2011-12 and Determination of Tariff for FY 2013-14 4.5.14 Return on equity ................................................................................................ 67 4.5.15 Taxes ................................................................................................................ 68 4.5.16 Non-Tariff Income ............................................................................................. 69 4.6 Revenue from sale of power ...................................................................................... 71 4.7 ARR approved in the truing up ................................................................................... 72 4.8 Sharing of Gains / (losses) for FY 2011-12 ................................................................ 73 4.9 Revenue gap / surplus for FY 2011-12 ...................................................................... 75 4.10 Consolidated revenue gap of the Discoms for FY 2011-12 ...................................... 76 5. Aggregate Revenue Requirement for FY 2013-14 ........................ 79 5.1 Introduction ................................................................................................................ 79 5.2 Approved ARR for FY 2013-14 .................................................................................. 79 5.3 Projected Revenue from existing tariff for FY 2013-14 ............................................... 80 5.4 Estimated Revenue and Revenue gap/surplus for FY 2013-14 .................................. 80 6. Fuel and Power Purchase Price Adjustment ................................ 83 6.1 Fuel Price and Power Purchase Price Adjustment .................................................... 83 6.2 Formula .................................................................................................................... 83 6.3 Base price of power purchase from various sources ................................................. 85 6.4 Base FPPPA charge fixed at 61 paise/unit ............................................................... 88 7. Wheeling charges and cross subsidy surcharge ......................... 89 7.1 Allocation matrix ....................................................................................................... 89 7.2 Wheeling charges ...................................................................................................... 90 7.3 Cross subsidy charges .............................................................................................. 91 8. Compliance of Directives ............................................................... 94 8.1 Compliance of Directives .......................................................................................... 94 8.2 New Directives........................................................................................................ 101 9. Tariff Philosophy and Tariff Proposals ....................................... 103 9.1 Introduction .............................................................................................................. 103 9.2 Proposal of MGVCL for tariff structure and changes in tariff structure ...................... 103 9.3 Commission‟s Analysis ............................................................................................ 104 9.4 Revenue Gap / Surplus ........................................................................................... 104 COMMISSION’S ORDER ................................................................... 106 ANNEXURE: TARIFF SCHEDULE FOR FY 2013-14 ........................ 107 Gujarat Electricity Regulatory Commission Page vi April 2013 Madhya Gujarat Vij Company Limited Truing up for FY 2011-12 and Determination of Tariff for FY 2013-14 LIST OF TABLES Table 2.1: Actuals submitted by MGVCL for FY 2011-12 ...................................................................... 7 Table 2.2: Projected Revenue Gap till FY 2011-12 ................................................................................ 8 Table 2.3: ARR, Revenue and Gap for FY 2013-14 .............................................................................. 8 Table 4.1: Category-wise actual sales for FY 2011-12 ........................................................................ 45 Table 4.2: Energy sales approved in the truing up for FY 2011-12 ..................................................... 46 Table 4.3: Distribution Losses considered for truing up for FY 2011-12 .............................................. 47 Table 4.4: Energy requirement and Energy balance as submitted by MGVCL for FY 2011-12 .........