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Tariff Order for 2007-08

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Tariff Order for 2007-08 ANDHRA PRADESH ELECTRICITY REGULATORY COMMISSION TARIFF ORDER on Retail Supply Business for the FY 2007-08 of CENTRAL POWER DISTRIBUTION COMPANY OF A P LTD EASTERN POWER DISTRIBUTION COMPANY OF A P LTD NORTHERN POWER DISTRIBUTION COMPANY OF A P LTD and SOUTHERN POWER DISTRIBUTION COMPANY OF A P LTD 20th March 2007 Singareni Bhavan, Red Hills, Lakdi-ka-pool Hyderabad – 500 004 CONTENTS Chapter Description Page No. I Introduction 2 II Filing of ARR / Tariff proposals 5 III Important Issues Raised In Objections/ Suggestions filed and 10 during public hearings and replies thereto by DISCOMs IV Staff Presentation and Response of Licensees 60 V Statement of Government of Andhra Pradesh 67 VI Commission’s Analysis on substantive issues 70 VII Parameters for analysis of the Revenue Requirement 92 VIII Retail Supply Business of APCPDCL 111 IX Retail Supply Business of APEPDCL 123 X Retail Supply Business of APNPDCL 135 XI Retail Supply Business of APSPDCL 148 A ANNEXURES ANNEXURE Description Page No. Annexure – A Directives Brought Forward for Continued Compliance 162 Annexure – B Fresh Directives 166 Annexure – C Waivers requested by DISCOMs 170 Schedule of Retail Tariff Rates and Terms and 171 Annexure – D Conditions Annexure – E (i) Station-wise/month-wise availability of energy as filed 205 Annexure – E (ii) Station-wise/month-wise availability of Energy - APERC 209 Annexure – E (iii) Station-wise and Month-wise Despatch of Energy 213 Power purchase (in MU) with voltage-wise sales (in MU) 215 Annexure – F and voltage-wise loss (%) Annexure - G (i) Revised Power Purchase Costs for FY 2007-08 - APEPDCL 217 Annexure - G (ii) Revised Power Purchase Costs for FY 2007-08 - APCPDCL 219 Annexure - G (iii) Revised Power Purchase Costs for FY 2007-08 - APNPDCL 221 Annexure - G (iv) Revised Power Purchase Costs for FY 2007-08 - APSPDCL 223 Annexure – H (i) Category-wise monthly sales for FY 2007-08 : DISCOMs 225 Annexure – H (ii) Category-Wise Monthly Sales for FY 2007-08 : APEPDCL 227 Annexure – H (iii) Category-Wise Monthly Sales for FY 2007-08 : APCPDCL 229 Annexure – H (iv) Category-Wise Monthly Sales for FY 2007-08 : APNPDCL 231 Annexure – H (v) Category-Wise Monthly Sales for FY 2007-08 : APSPDCL 233 Annexure – I (i) Cost to Service Model : APCPDCL 235 Annexure – I (ii) Cost to Service Model : APEPDCL 239 Annexure – I (iii) Cost to Service Model : APNPDCL 243 Annexure – I (iv) Cost to Service Model : APSPDCL 247 Annexure - J List of Objectors on filings of DISCOMs 251 B TABLES TABLE 1 : PUBLIC HEARINGS.................................................................................7 TABLE 2 : NUMBER OF OBJECTIONS / SUGGESTIONS RECEIVED ON ARR / TARIFF FILINGS ......................8 TABLE 3 : COMPARATIVE VARIABLE COST FOR HYDRO GENERATION IN FY 2008 VS. FY 2007.............. 76 TABLE 4 : SOURCE-WISE AVAILABILITY OF ENERGY FOR FY 2007-08 (MU)................. 93 TABLE 5 : VOLTAGE-WISE PERCENTAGE LOSSES AS FILED BY DISCOMS ...................................... 94 TABLE 6 : VOLTAGE-WISE PERCENTAGE LOSSES AS ADOPTED BY APERC ..................................... 95 TABLE 7 : SALES AND POWER PURCHASE REQUIREMENT..................................................... 96 TABLE 8: VARIABLE CHARGES .............................................................................. 98 TABLE 9 : POWER PURCHASE COSTS FOR CGS STATIONS FOR FY 2007-08................................. 99 TABLE 10 : POWER PURCHASE COSTS FOR APGPCL FOR FY 2007-08.................................... 100 TABLE 11 : POWER PURCHASE COSTS FOR IPPS FOR FY 2007-08......................................... 100 TABLE 12 : POWER PURCHASE COSTS FOR NCE SOURCES FOR FY 2007-08 ............................... 101 TABLE 13 : POWER PURCHASE COST FOR FY 2007-08 AS FILED – ALL DISCOMS.......................... 103 TABLE 14 : POWER PURCHASE COST FOR FY 2007-08 AS APPROVED BY APERC - ALL DISCOMS ......... 103 TABLE 15 : SUMMARY OF POWER PURCHASE AND PGCCIL COST FOR FY 2007-08........................ 103 TABLE 16 : MONTH-WISE VARIABLE COST FOR KWH AS ADOPTED BY APERC FOR FY 2007-08............ 104 TABLE 17 : POWER PURCHASE COST AFTER DISCOM-TO-DISCOM ENERGY TRANSFER..................... 105 TABLE 18 : POWER PURCHASE COST AFTER NCE COST ADJUSTMENT ...................................... 106 TABLE 19 : POWER PURCHASE COST AFTER PROVISIONING FOR APGENCO TARIFFS ....................... 107 TABLE 20 : APCPDCL: REVENUE REQUIREMENT FOR FY2007-08 ....................................... 112 TABLE 21 : SALES VOLUMES FOR FY2007-08 ............................................................ 113 TABLE 22 : SALES, ENERGY LOSSES AND ENERGY PURCHASES ............................................. 113 TABLE 23 : REVENUE FROM TARIFFS FOR FY 2007-08 .................................................... 116 TABLE 24 : REVENUE REQUIREMENT FOR FY 2007-08 .................................................... 117 TABLE 25 : REVENUE DEFICIT/SURPLUS................................................................... 117 TABLE 26 : COMMISSION DETERMINED TARIFFS FY 2007-08 ............................................. 118 TABLE 27 : APEPDCL: REVENUE REQUIREMENT FOR FY2007-08 ........................................ 124 TABLE 28 : SALES VOLUMES FOR FY2007-08............................................................. 125 TABLE 29 : SALES, ENERGY LOSSES AND ENERGY PURCHASES.............................................. 125 TABLE 30 : REVENUE FROM TARIFFS FOR FY 2007-08 .................................................... 128 TABLE 31: REVENUE REQUIREMENT FOR FY 2007-08 ..................................................... 129 TABLE 32 : REVENUE DEFICIT/SURPLUS................................................................... 129 TABLE 33 : COMMISSION DETERMINED TARIFFS FY 2007-08 .............................................. 130 TABLE 34 : APNPDCL: REVENUE REQUIREMENT FOR FY2007-08 ........................................ 136 TABLE 35: SALES VOLUMES FOR FY2007-08.............................................................. 137 TABLE 36: SALES, ENERGY LOSSES AND ENERGY PURCHASES .............................................. 137 TABLE 37: REVENUE FROM TARIFFS FOR FY 2007-08..................................................... 140 TABLE 38: REVENUE REQUIREMENT FOR FY 2007-08 ..................................................... 141 i TABLE 39: REVENUE DEFICIT/SURPLUS ................................................................... 141 TABLE 40: COMMISSION DETERMINED TARIFFS FY 2007-08 ............................................... 142 TABLE 41: DETAILS OF SUBSIDY ALLOCATION IN FY 2007-08 ............................................. 146 TABLE 42: APSPDCL: REVENUE REQUIREMENT FOR FY2007-08 ......................................... 149 TABLE 43: SALES VOLUMES FOR FY2007-08.............................................................. 150 TABLE 44: SALES, ENERGY LOSSES AND ENERGY PURCHASES .............................................. 150 TABLE 45: REVENUE FROM TARIFFS FOR FY 2007-08..................................................... 153 TABLE 46: REVENUE REQUIREMENT FOR FY 2007-08 ..................................................... 154 TABLE 47 :REVENUE DEFICIT/SURPLUS ................................................................... 154 TABLE 48 : COMMISSION DETERMINED TARIFFS FY 2007-08 .............................................. 155 TABLE 49 : DETAILS OF SUBSIDY ALLOCATION IN FY 2007-08............................................ 159 ii ANDHRA PRADESH ELECTRICITY REGULATORY COMMISSION Hyderabad Present Sri. K. Swaminathan, Chairman Sri. Surinder Pal, Member Sri R.Radha Kishen, Member Dated: 20-03-2007 O.P No.33 of 2006 Central Power Distribution Company of Andhra Pradesh Limited and O.P No. 34 of 2006 Eastern Power Distribution Company of Andhra Pradesh Limited and O.P No.35 of 2006 Northern Power Distribution Company of Andhra Pradesh Limited and O.P No.36 of 2006 Southern Power Distribution Company of Andhra Pradesh Limited …Applicants These came up for public hearings before several consumers, the representatives of various consumer organizations, political parties and other stakeholders, on 23.01.2007 at Guntur (O.P.No.36 of 2006), on 24.01.2007 at Eluru (O.P.No.34 of 2006), on 27.01.2007 at Sangareddy (O.P.No.33 of 2006), on 29.01.2007 at Nizamabad (O.P.No.35 of 2006), and a video conference (all the O.Ps) between the Commission at the State Government Secretariat, Hyderabad, and the Applicants and the consumers, representatives of consumer organizations, etc., at District Collectorates in the State, on 31.01.2007, and having stood over for consideration till this day, the Commission passed the following common O R D E R 1 CHAPTER - I INTRODUCTION 1. The Electricity Act 2003 (Act 36 of 2003), hereinafter called "the Central Act", came into force with effect from 10-06-2003. While the previous Acts governing the electricity supply in the country Viz., the Indian Electricity Act 1910 (9 of 1910), the Electricity (Supply) Act, 1948 (54 of 1948) and the Electricity Regulatory Commissions Act 1998 (14 of 1998) stand repealed as on the date of this order, the provisions of A.P. Electricity Reform Act 1998 (hereinafter called ‘the Reform Act’), not inconsistent with the provisions of the Central Act, continue to apply to the State of Andhra Pradesh (A.P.). 2. The four Distribution Companies (hereinafter referred to as the ‘distribution licensees’ or ‘DISCOMs’) namely, the Eastern Power Distribution Company of A.P Limited (hereinafter, ‘APEPDCL’ or ‘EPDCL’), the Central Power Distribution Company of A.P Limited
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