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Tariff Order 2017-18

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Tariff Order 2017-18 Telangana State Electricity Regulatory Commission 5thFloor, Singareni Bhavan, Red Hills, Lakdi-ka-pul, Hyderabad 500004. TARIFF ORDER Retail Supply Tariffs for FY 2017-18 In the supply areas of Southern Power Distribution Company of Telangana Limited (TSNPDCL) and Northern Power Distribution Company of Telangana Limited (TSSPDCL) 26.08.2017 TABLE OF CONTENTS CHAPTER 1 - INTRODUCTION .............................................................................................................................. 2 1.1 BACKGROUND .......................................................................................................................................... 2 1.2. ADMISSION OF PETITIONS AND REGULATORY PROCESS ............................................................. 4 1.3. DATA GAPS AND LICENSEE’S RESPONSES ........................................................................................ 6 1.4. COMMUNICATION WITH THE GOVERNMENT OF TELANGANA STATE REGARDING SUBSIDY .................................................................................................................................................................. 6 1.5. STRUCTURE OF THE ORDER .................................................................................................................. 7 CHAPTER 2 - STAKEHOLDER CONSULTATION .............................................................................................. 9 2.1 TARIFF FILINGS ........................................................................................................................................ 9 2.2 CONSUMER CATEGORY-WISE SALES FOR FY 2017-18....................................................................12 2.3 ENERGY AVAILABILITY FOR FY 2017-18 ...........................................................................................13 2.4 POWER PURCHASE COST FOR FY 2017-18..........................................................................................18 2.5 TRANSMISSION CHARGES FOR FY 2017-18 .......................................................................................20 2.6 CONSUMER CATEGORISATION ............................................................................................................20 2.7 RETAIL SUPPLY TARIFFS FOR FY 2017-18..........................................................................................24 2.8 OPERATIONAL ISSUES ...........................................................................................................................28 2.9 OTHERS ......................................................................................................................................................31 CHAPTER 3 – ANNUAL REVENUE REQUIREMENT FOR FY 2017-18 ..........................................................35 3.1 SALES PROJECTIONS FOR FY 2017-18 .................................................................................................35 3.2 ENERGY REQUIREMENT FOR FY 2017-18 ...........................................................................................39 3.3 ENERGY AVAILABILITY FOR FY 2017-18 ...........................................................................................41 3.4 MONTHLY MERIT ORDER DISPATCH .................................................................................................51 3.5 COST OF GENERATION...........................................................................................................................51 3.6 DISCOM WISE ALLOCATION OF ENERGY .........................................................................................56 3.7 DISCOM TO DISCOM (D-D) ENERGY TRANSFER AND D-D COST ADJUSTMENT ......................56 3.8 ADDITIONAL INTEREST ON PENSION BONDS ..................................................................................56 3.9 POWER PURCHASE COST.......................................................................................................................56 3.10 DISTRIBUTION COST ..............................................................................................................................58 3.11 TRANSMISSION COST .............................................................................................................................58 3.12 PGCIL & POSOCO CHARGES ..................................................................................................................59 3.13 SLDC CHARGES ........................................................................................................................................59 3.14 INTEREST ON CONSUMER SECURITY DEPOSIT ...............................................................................59 3.15 SUPPLY MARGIN .....................................................................................................................................60 3.16 OTHER CHARGES.....................................................................................................................................60 3.17 AGGREGATE REVENUE REQUIREMENT (ARR) ................................................................................60 3.18 SAVINGS DUE TO UDAY SCHEME .......................................................................................................61 3.19 NET REVENUE REQUIREMENT FOR FY 2017-18 ................................................................................61 CHAPTER 4 – COST OF SERVICE FOR FY 2017-18 ...........................................................................................62 4.1 COST OF SERVICE....................................................................................................................................62 i CHAPTER 5 -TRUE UP FOR FY 2015-16 & PROVISIONAL TRUE UP FOR FY 2016-17 .............................65 5.1 REGULATORY PROVISIONS ..................................................................................................................65 5.2 TRUE-UP FOR FY 2015-16........................................................................................................................65 5.3 PROVISIONAL TRUE UP FOR FY 2016-17 ............................................................................................67 CHAPTER 6 – TARIFF DESIGN .............................................................................................................................69 6.1 LT II: NON-DOMESTIC/COMMERCIAL.................................................................................................69 6.2 LT III: INDUSTRY .....................................................................................................................................71 6.3 LT V: AGRICULTURE ..............................................................................................................................74 6.4 LT VIII: TEMPORARY SUPPLY ..............................................................................................................76 6.5 HT I: INDUSTRY........................................................................................................................................78 6.6 HT II: OTHERS ...........................................................................................................................................81 6.7 HT V (A): RAILWAY TRACTION ............................................................................................................83 6.8 HT V(B): HYDERABAD METRO RAIL ...................................................................................................84 6.9 HT VII: TEMPORARY ...............................................................................................................................85 CHAPTER 7- RETAIL SUPPLY TARIFF SCHEDULE FOR FY 2017-18 ..........................................................88 7.1 REFERENCE TARIFF SCHEDULE ..........................................................................................................88 7.2 REVENUE AT REFERENCE TARIFFS ....................................................................................................91 7.3 NON-TARIFF INCOME .............................................................................................................................93 7.4 REVENUE GAP AT REFERENCE TARIFFS ...........................................................................................93 7.5 FULL COST RECOVERY TARIFF SCHEDULE .....................................................................................94 7.6 SUBSIDY COMMITMENT ........................................................................................................................98 7.7 RETAIL SUPPLY TARIFF SCHEDULE .................................................................................................100 CHAPTER 8- TERMS AND CONDITIONS OF TARIFF....................................................................................105 CHAPTER 9 - COMMISSION’S DIRECTIVES ...................................................................................................140 9.1 IMPORTED COAL ...................................................................................................................................140 9.2 QUALITY OF DOMESTIC COAL...........................................................................................................140 9.3 TRANSPORTATION OF FAILED TRANSFORMERS ..........................................................................140 9.4 SEGREGATION OF LOADS IN AIRPORT ............................................................................................140
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