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Retail Supply Tariff Order FY 2021-22

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Retail Supply Tariff Order FY 2021-22 Retail Supply Tariff Order FY 2021-22 MADHYA PRADESH ELECTRICITY REGULATORY COMMISSION 5th Floor, Metro Plaza, Bittan Market, Bhopal - 462 016 AGGREGATE REVENUE REQUIREMENT AND RETAIL SUPPLY TARIFF ORDER FOR FY 2021-22 Petition Nos. Petition No. 05/2021 PRESENT: S.P.S Parihar, Chairman Mukul Dhariwal, Member Shashi Bhushan Pathak, Member IN THE MATTER OF: Determination of Aggregate Revenue Requirement (ARR) and Retail Supply Tariff for FY 2021-22 based on the ARR & Tariff Petition filed by the Distribution Licensees namely Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company Limited (East DISCOM), Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Limited (West DISCOM), Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Limited (Central DISCOM), and M.P. Power Management Company Limited (MPPMCL). Madhya Pradesh Electricity Regulatory Commission Page 1 Retail Supply Tariff Order FY 2021-22 Table of Contents A1: ORDER ....................................................................................................................... 10 A2: AGGREGATE REVENUE REQUIREMENT FOR PETITIONERS ................. 17 Sales forecast as projected by the Petitioners ...................................................................... 17 Commission’s Analysis .......................................................................................................... 18 Energy Balance....................................................................................................................... 24 Petitioners’ Submission ...........................................................................................................24 Commission’s Analysis ............................................................................................................25 Assessment of Energy Availability ...........................................................................................26 Assessment of Power Purchase Cost .......................................................................................41 Petitioners’ Submission ...........................................................................................................41 Renewable Purchase Obligation (RPO) ..................................................................................64 Inter-State Transmission Charges associated with existing capacities ...................................70 Capitalization and CWIP ...................................................................................................... 76 Commission’s Analysis on Asset Capitalization.................................................................. 76 Operations and Maintenance Expenses ............................................................................... 77 Petitioners’ Submission ...........................................................................................................77 Employee Expenses ..................................................................................................................77 A&G Expenses .........................................................................................................................78 R&M Expenses .........................................................................................................................78 Commission’s Analysis on O&M Expenses ......................................................................... 78 Depreciation............................................................................................................................ 80 Petitioners’ Submission ...........................................................................................................80 Commission’s Analysis of Depreciation ............................................................................... 81 Interest and Finance Charges ............................................................................................... 82 Petitioners’ submission ............................................................................................................82 Commission’s Analysis of Interest and Finance Charges .................................................. 84 Interest on Working Capital ................................................................................................. 85 Petitioners’ Submission ...........................................................................................................85 Commission’s Analysis of Interest on Working Capital .................................................... 86 Interest on Consumer Security Deposit ............................................................................... 88 Petitioners Submission .............................................................................................................88 Commission’s Analysis of Consumer Security Deposit ...................................................... 88 Return on Equity.................................................................................................................... 88 Petitioners’ submission ............................................................................................................88 Commission’s Analysis of Return on Equity ....................................................................... 88 Bad and doubtful debts ......................................................................................................... 89 Petitioners’ submission ............................................................................................................89 Commission’s Analysis on Bad and Doubtful debts ........................................................... 89 Other Income .......................................................................................................................... 90 Petitioners’ submission ............................................................................................................90 Commission’s Analysis on Other Income ............................................................................ 91 Revenue from existing tariffs and Gap/Surplus .................................................................. 95 A3: WHEELING CHARGES, CROSS SUBSIDY SURCHARGE AND ADDITIONAL SURCHARGE ............................................................................................. 98 Madhya Pradesh Electricity Regulatory Commission Page 2 Retail Supply Tariff Order FY 2021-22 A4: FUEL COST ADJUSTMENT CHARGE .............................................................. 106 A5: RETAIL TARIFF DESIGN .................................................................................... 111 Legal Position ....................................................................................................................... 111 Commission’s Approach to Tariff Determination ............................................................ 111 Linkage to Average Cost of Supply .................................................................................... 111 A6: COMPLIANCE OF DIRECTIVES ISSUED IN TARIFF ORDER FOR FY 2020- 21 117 A7: PUBLIC SUGGESTIONS AND COMMENTS ON LICENSEES’ PETITIONS .......................................................................................................................... 129 Annexure-1 (List of Stakeholders) ..................................................................................... 168 Annexure-2 (Details of ToD Tariff) .................................................................................... 171 Annexure-3 (Tariff Schedules for Low Tension Consumers) .......................................... 175 Annexure-4 (Tariff Schedules for High Tension Consumers) ......................................... 202 Madhya Pradesh Electricity Regulatory Commission Page 3 Retail Supply Tariff Order FY 2021-22 List of Tables Table 1 : List of Newspapers- Public Notice published by the Petitioners’ ............................ 10 Table 2 : Snapshot of the Petition for FY 2021-22 (Rs. Crore) ............................................... 11 Table 3: Snapshot of the revised ARR and Revenue Gap for FY 2021-22 (Rs. Crore) ........... 11 Table 4: Status of meterisation of un-metered rural domestic consumers .............................. 12 Table 5: Status of meterisation of agricultural DTRs .............................................................. 12 Table 6: Distribution Loss Trajectory specified in the Regulations ........................................ 13 Table 7: Actual Distribution Loss for FY 2016-17 to FY 2020-21 .......................................... 14 Table 8: ARR admitted by the Commission for FY 2021-22 (Rs. Crore) ................................ 15 Table 9: Category wise sales projected by Petitioners for FY 2021-22 (MU) ........................ 18 Table 10: Actual Sales for FY 2017-18 to FY 20120-21 (MUs) .............................................. 18 Table 11: Percentage increase in actual sales in FY 2017-18 to FY 2020-21 (%) ................. 20 Table 12: Category wise sales admitted by the Commission for FY 2021-22 (MUs).............. 23 Table 13: Energy Requirement for FY 2021-22 as proposed by Petitioners ........................... 24 Table 14: Loss targets as per Regulations (in %).................................................................... 25 Table 15: Energy requirement estimated by the Commission for FY 2021-22........................ 25 Table 16: Upcoming Stations and Technical Parameters ....................................................... 27 Table 17: MPPMCL allocated stations
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