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TARIFF ORDER Review of ARR of FY 2013-14 and Determination of Aggregate Revenue Requirement & Retail Tariff for FY 2014-15

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TARIFF ORDER Review of ARR of FY 2013-14 and Determination of Aggregate Revenue Requirement & Retail Tariff for FY 2014-15 TARIFF ORDER Review of ARR of FY 2013-14 and Determination of Aggregate Revenue Requirement & Retail Tariff for FY 2014-15, Petition no.124/2014 For Electricity Department, UT of Andaman & Nicobar Islands JOINT ELECTRICITY REGULATORY COMMISSION For the State of Goa and Union Territories 2nd Floor, HSIIDC Office Complex, Vanijya Nikunj Udyog Vihar, Phase-V, Gurgaon-122 016 (Haryana) Phone: 0124-2342852 Fax: 0124-2342853 Website: www.jercuts.gov.in 11th April 2014 JERC Order on ARR & Tariff Petition for ED, UT of Andaman & Nicobar Islands for FY 2014-15 Contents 1. INTRODUCTION ............................................................................................................................. 10 1.1 JERC Formation ............................................................................................................................. 10 1.2 Electricity Department, UT of Andaman & Nicobar Islands ......................................................... 10 1.3 Filing of Petition ............................................................................................................................ 11 1.4 Admission of Petition .................................................................................................................... 12 1.5 Interaction with the petitioner ..................................................................................................... 12 1.6 Public hearing process .................................................................................................................. 14 1.7 Notice for public hearing .............................................................................................................. 14 1.8 Adherence to Model Code of Conduct ......................................................................................... 16 2. BRIEF SUMMARY OF ARR & TARIFF PETITION FOR FY 2014-15 .................................................... 17 2.1 Introduction .................................................................................................................................. 17 2.2 About Electricity Department of Andaman & Nicobar ................................................................. 17 2.3 Petition Summary for Aggregate Revenue Requirement for FY 2014-15 .................................... 18 2.4 Summary of the Tariff Proposal for FY 2014-15 ........................................................................... 19 2.5 Prayer to the Hon’ble Commission ............................................................................................... 21 3. APPROACH OF THE ORDER FOR DETERMINATION OF ARR & TARIFF FOR FY 2014-15 ................ 22 3.1 Introduction .................................................................................................................................. 22 3.2 Approach for True-up for FY 2012-13 ........................................................................................... 22 3.3 Approach for Review for FY 2013-14 ............................................................................................ 23 3.4 Approach for Determination of ARR & Retail Tariff for FY 2014-15 ............................................. 25 4. SUMMARY OF OBJECTIONS RAISED/ SUGGESTIONS MADE, PETITIONER’s RESPONSE AND COMMISSION’S VIEWS .................................................................................................................. 27 4.1 Public response to the Petition ..................................................................................................... 27 4.2 Public Hearing ............................................................................................................................... 27 4.3 Objections/Suggestions/ Comments of stakeholders and response of Electricity Department, UT of Andaman & Nicobar Islands there to and Commission’s views on petition no. 124/2014, previous year review ..................................................................................................................... 28 5. TRUING UP FOR FY 2012-13 .......................................................................................................... 30 5.1 Petitioner Submission ................................................................................................................... 30 5.2 Commission Analysis ..................................................................................................................... 30 6. REVIEW OF ARR FOR FY 2013-14 .................................................................................................. 32 6.1 Background ................................................................................................................................... 32 6.2 Review of ARR for FY 2013-14 ...................................................................................................... 33 6.3 Consumers, Connected load and Energy Sales ............................................................................. 34 6.4 Transmission & Distribution Loss .................................................................................................. 37 6.5 Energy Balance .............................................................................................................................. 39 6.6 Power Purchase Quantum and Cost ............................................................................................. 42 Thermal Power Generation ............................................................................................................... 47 6.7 Operation and Maintenance Expenses ......................................................................................... 59 6.7.1 Employee Expenses .................................................................................................................... 60 6.7.2 Administration and General Expenses ....................................................................................... 62 JOINT ELECTRICITY REGULATORY COMMISSION FOR THE STATE OF GOA and UNION TERRITORIES Page 2 JERC Order on ARR & Tariff Petition for ED, UT of Andaman & Nicobar Islands for FY 2014-15 6.7.3 Repair and Maintenance Expenses ............................................................................................ 63 6.7.4 Summary of O & M Expenses .................................................................................................... 64 6.8 Capital Expenditure and Capitalization ......................................................................................... 65 6.9 GFA and Depreciation ................................................................................................................... 66 6.10 Interest and Finance Charges ...................................................................................................... 68 6.10.1 Interest on Loan ................................................................................................................... 68 6.10.2 Interest on Working Capital ................................................................................................. 71 6.10.3 Interest on Security Deposit ................................................................................................. 73 6.11 Return on Capital Base/Equity..................................................................................................... 75 6.12 Non-Tariff Income ........................................................................................................................ 76 6.13 Revenue at existing tariff for FY 2013-14 .................................................................................... 77 6.14 Review of Aggregate Revenue Requirement for FY 2013-14 ...................................................... 78 7. AGGREGATE REVENUE REQUIREMENT OF FY 2014-15 ................................................................ 80 7.1 Background ................................................................................................................................... 80 7.2 Analysis of Aggregate Revenue Requirement of FY 2014-15 ....................................................... 80 7.3 Consumers, Connected load and Energy Sales ............................................................................. 82 7.4 Transmission & Distribution Loss .................................................................................................. 87 7.5 Energy Balance .............................................................................................................................. 87 7.6 Power Purchase Quantum and Cost ............................................................................................. 89 7.7 Operation and Maintenance Expenses ......................................................................................... 99 7.7.1 Employee Expenses .................................................................................................................. 100 7.7.2 Administration and General Expenses ..................................................................................... 103 7.7.3 Repair and Maintenance Expenses .......................................................................................... 104 7.7.4 Summary of O & M Expenses .................................................................................................. 106 7.8 Capital Expenditure and Capitalization ....................................................................................... 106 7.9 GFA and Depreciation
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