Tariff Order FY 2009-10
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UTTAR PRADESH ELECTRICITY REGULATORY COMMISSION PETITION NO. : 624,625,626,627,628 OF 2009 FILED BY U. P. POWER TRANSMISSION CORPORATION LIMITED MADHYANCHAL VIDYUT VITARAN NIGAM LIMITED DAKSHINANCHAL VIDYUT VITARAN NIGAM LIMITED PURVANCHAL VIDYUT VITARAN NIGAM LIMITED PASHCHIMANCHAL VIDYUT VITARAN NIGAM LIMITED IN THE MATTER OF DETERMINATION OF ANNUAL REVENUE REQUIREMENT (ARR) AND TARIFF FOR FY 2009-10 ORDER UNDER SECTION 64 OF THE ELECTRICITY ACT 2003 LUCKNOW 31st March 2010 Order on ARR and Tari ff Petition for Transco and Discoms for FY 2009-10 TABLE OF CONTENTS CHAPTER DESCRIPTION PAGE Chapter 1. BACKGROUND AND BRIEF HISTORY _______________________ 1 Chapter 2. PROCEDURAL HISTORY ___________________________________ 5 Chapter 3. SUMMARY OF THE ARR AND TARIFF PETITIONS ___________ 10 Chapter 4. OBJECTIONS TO ARR / TARIFF PETITIONS OF FY 2009-10 ___ 50 Chapter 5. ANALYSIS OF TRANSCO ARR FOR FY 2009-10 _______________ 85 Chapter 6. ANALYSIS OF DISCOMS ARR FOR FY 2009-10 ______________ 107 Chapter 7. OPEN ACCESS CHARGES ________________________________ 155 Chapter 8. TARIFF DESIGN ________________________________________ 161 Chapter 9. TREATMENT TO REVENUE GAP __________________________ 179 Chapter 10. WAY FORWARD _________________________________________ 184 Chapter 11. DIRECTIONS TO DISCOMS & TRANSCO ___________________ 194 Chapter 12. APPLICABILITY OF THE ORDER _________________________ 200 Page I Order on ARR and Tari ff Petition for Transco and Discoms for FY 2009-10 LIST OF ANNEXURES ANNEXURE PAGE ANNEXURE ± I _______________________________________________________ 201 ANNEXURE ± II ______________________________________________________ 203 ANNEXURE ± III _____________________________________________________ 207 ANNEXURE ± IV _____________________________________________________ 212 ANNEXURE ±V _______________________________________________________ 214 ANNEXURE ± VI _____________________________________________________ 215 ANNEXURE ± VII _____________________________________________________ 216 ANNEXURE ± VIII ____________________________________________________ 219 ANNEXURE ± IX _____________________________________________________ 225 ANNEXURE ± X ______________________________________________________ 226 ANNEXURE ± XI _____________________________________________________ 227 ANNEXURE ± XII _____________________________________________________ 231 ANNEXURE ± XII (A) _________________________________________________ 268 ANNEXURE - XII (B) __________________________________________________ 270 ANNEXURE - XII (C) __________________________________________________ 272 ANNEXURE ± XIII ____________________________________________________ 273 ANNEXURE ± XIV ____________________________________________________ 276 ANNEXURE ± XV _____________________________________________________ 278 ANNEXURE ± XVI ____________________________________________________ 279 ANNEXURE ± XVII ___________________________________________________ 294 ANNEXURE ± XVIII___________________________________________________ 302 Page II Order on ARR and Tari ff Petition for Transco and Discoms for FY 2009-10 LIST OF TABLES TABLE DESCRIPTION PAGE TABLE 3-1: DETAILS OF REVENUE GAP FOR FY 2009-10: (DISCOMS & UPPTCL) ............................ 11 TABLE 3-2: SUBSIDY COMMITMENT BY GoUP FOR FY 2009-10 ..................................................... 11 TABLE 3-3: DETAILS OF ADDITIONAL SUBSIDY CLAIM BY UPPCL FOR FY 2009-10 ......................... 12 TABLE 3-4: ENERGY SALES FY 2007-08 & FY 2008-09 (MUs) .......................................................... 13 TABLE 3-5: ARR COMPARISON FOR FY 2007-08 & FY 2008-09 - (Rs. Cr) ........................................ 14 TABLE 3-6: COLLECTION EFFICIENCY TARGET (IN %) ...................................................................... 15 TABLE 3-7: DISCOM-WISE RURAL ELECTRIFICATION PROGRAM (No. of Villages) ......................... 17 TABLE 3-8: CONSUMPTION NORMS FOR UN-METERED CATEGORIES ........................................... 18 TABLE 3-9: ENERGY SALES FOR FY 2007-08 , FY 2008-09 & FY 2009-10 ........................................ 19 TABLE 3-10: ENERGY BALANCE FOR DISCOMS ............................................................................... 20 TABLE 3-11: ASSESSMENT REVENUE, SALES & THROUGH RATE FOR FY 2007-08 .......................... 21 TABLE 3-12: ASSESSMENT REVENUE, SALES & THROUGH RATE FOR FY 2008-09 .......................... 22 TABLE 3-13: ASSESSMENT REVENUE, SALES & THROUGH RATE FOR FY 2009-10 .......................... 23 TABLE 3-14: VARIABLE COST FOR GAS BASED STATIONS - FY 2009-10 .......................................... 25 TABLE 3-15: POWER PURCHASE SUMMARY FOR FY 2007-08, FY 2008-09 & FY 2009-10 (MU) .... 27 TABLE 3-16: POWER PURCHASE COSTS ʹ CONSOLIDATED DISCOMS ............................................. 28 TABLE 3-17: EMPLOYEE COSTS ʹDISCOMs (Rs. Cr) ......................................................................... 30 TABLE 3-18: A&G EXPENSES ʹDISCOMS (Rs. Cr) ............................................................................. 31 TABLE 3-19: INVESTMENT PLAN: DISCOM (Rs. Cr) ......................................................................... 32 TABLE 3-20: ASSETS CAPITALISATION DURING FY 2008-09 (Rs. Cr) ............................................... 32 TABLE 3-21: ASSETS CAPITALISATION DURING FY 2009-10 (Rs. Cr) ............................................... 32 TABLE 3-22: R&M EXPENSES - DISCOMS (Rs. Cr) ............................................................................ 34 TABLE 3-23: SUMMARY OF O&M EXPENSES ʹ DISCOMS (Rs. Cr) ................................................... 34 TABLE 3-24: PROVISION FOR BAD AND DOUBTFUL DEBTS- DISCOMS (Rs. Cr) .............................. 35 TABLE 3-25: INTEREST & FINANCING CHARGES - DISCOMS (Rs Cr) ................................................ 36 TABLE 3-26: SUMMARY OF OTHER INCOME ʹDISCOMS ( Rs Cr) .................................................... 36 TABLE 3-27: OTS WAIVER AMOUNT (Rs. Cr) ................................................................................... 37 TABLE 3-28: ARR OF DISCOMS ON CONSOLIDATED BASIS (Rs. Cr) ................................................. 39 TABLE 3-29: SEPARATION OF ARR - WHEELING & SUPPLY BUSINESS: FY 2009-10 (Rs. Cr) ............ 40 TABLE 3-30: BULK SUPPLY TARIFF FOR FY 2009-10 (Rs. Cr) ........................................................... 40 TABLE 3-31: EMPLOYEE COST ʹ TRANSCO (Rs. Cr) ......................................................................... 43 TABLE 3-32: ADMINISTRATION & GENERAL EXPENSES ʹ TRANSCO (Rs. Cr) .................................. 44 TABLE 3-33: INVESTMENT PLAN ʹ TRANSCO (Rs. Cr) ..................................................................... 44 TABLE 3-34: REPAIRS & MAINTENANCE EXPENSES ʹ TRANSCO (Rs. Cr) ........................................ 45 TABLE 3-35: SUMMARY OF O&M EXPENSES ʹ TRANSCO (Rs. Cr) .................................................. 45 Page III Order on ARR and Tari ff Petition for Transco and Discoms for FY 2009-10 TABLE 3-36: INTEREST AND FINANCE CHARGES ʹ TRANSCO (Rs. Cr) ............................................. 46 TABLE 3-37: SUMMARY OF OTHER INCOME ʹ TRANSCO (Rs. Cr) ................................................... 46 TABLE 3-38: RETURN ON EQUITY ʹ TRANSCO (Rs. Cr) .................................................................... 47 TABLE 3-39: ARR OF TRANSCO (Rs. Cr) ........................................................................................... 47 TABLE 3-40: COMPUTATION OF TRANSMISSION TARIFF ( Rs./kWh).............................................. 48 TABLE 3-41: BREAK UP OF SLDC CHARGES (Rs. Cr) ......................................................................... 49 TABLE 4-1: LIST OF INDIVIDUALS AND ORGANISATION ................................................................. 82 TABLE 5-1: SUMMARY OF ARR PETITION FY 2009-10 ( RS. CR) ...................................................... 85 TABLE 5-2: TOTAL TRANSMISSION LOSSES FOR FY 2009-10 (MU) ................................................. 87 TABLE 5-3: INFLATION INDEX FOR FY 2009-10 ............................................................................... 88 TABLE 5-4: APPROVED INCREMENTAL O&M EXPENSES FOR FY 2009-10 ( Rs. Cr) ......................... 90 TABLE 5-5: APPROVED EMPLOYEE EXPENSE FOR FY 2009-10 ( Rs. Cr)........................................... 92 TABLE 5-6: APPROVED A&G EXPENSE FOR FY 2009-10 ( Rs. Cr) .................................................... 94 TABLE 5-7: APPROVED INVESTMENTS FOR FY 2009-10 (Rs. Cr) ..................................................... 96 TABLE 5-8: APPROVED CAPITALISATION & WIP OF INVESTMENTS FOR FY 2009-10 ( Rs. Cr) ........ 97 TABLE 5-9: APPROVED GFA FOR FY 2009-10 ( Rs. Cr) ..................................................................... 98 TABLE 5-10: APPROVED INTEREST ON LONG TERM LOANS FOR FY 2009-10 ( Rs. Cr) ................... 99 TABLE 5-11: APPROVED INTEREST ON WORKING CAPITAL FOR FY 2009-10 ( Rs. Cr) .................. 100 TABLE 5-12: TOTAL APPROVED INTEREST & FINANCE CHARGES FY 2009-10 (Rs. Cr) .................. 101 TABLE 5-13 APPROVED RETURN ON EQUITY FOR FY 2009-10 ( Rs. Cr) ........................................ 102 TABLE 5-14 APPROVED ARR TRANSCO FOR FY 2009-10 ( Rs. Cr) ................................................ 103 TABLE 5-15: APPROVED SLDC CHARGES FOR FY 2009-10 ( Rs. Cr) ............................................... 104 TABLE 5-16: APPROVED TRANSCO & SLDC ARR FOR FY 2009-10 (Rs. Cr) ....................................