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BYPL for FY 2002-03 (9 Months) and 2003-04

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BYPL for FY 2002-03 (9 Months) and 2003-04 DELHI ELECTRICITY REGULATORY COMMISSION Viniyamak Bhawan, C-Block, Shivalik, Malviya Nagar, New Delhi-110017 Petition No. 8/2002 In the Matter of : Petition dated November 30, 2002 for filing of Aggregate Revenue Requirement (ARR) for the Financial Year 2002-03 (from July 1 onwards) and determination of tariffs and Petition dated December 31, 2002 for filing of Aggregate Revenue Requirement (ARR) for the Financial Year 2003-04 and determination of tariffs to be charged by BSES Yamuna Power Limited AND In the Matter of : BSES Yamuna Power Limited (formerly Central East Delhi Electricity Distribution Company Limited) Shakti Kiran Building, Karkardooma, Delhi 110092 Before Delhi Electricity Regulatory Commission Sh. V.K. Sood Chairman Date of Order: 26th June 2003 Order The Commission having deliberated on the above petition and also the subsequent filings by the petitioner in the course of above proceedings, and having considered the responses received from the stakeholders, has in exercise of powers vested under the Delhi Electricity Reform Act, 2000, passes this Order signed, dated and issued on 26th Day of June 2003. The Petitioner shall take immediate steps to implement the Order after giving seven days public notice in accordance with section 28 (6) of Delhi Electricity Reform Act, 2000, so as to make the revised tariffs applicable from July 4, 2003. (V.K. Sood) Chairman Delhi Electricity Regulatory Commission i Annual Report for the year(s) 1999-2000, 2000-01, 2001-02and 2002-03 ii Delhi Electricity Regulatory Commission Delhi Electricity Regulatory Commission iii Table of Contents 1. Background, Procedural History and Description of ARR Filing..................................................................................1 1.1 About the Commission.....................................................................................................................................1 1.1.1 Functions of the Commission.....................................................................................................1 1.1.2 Issuance of Concept Paper on Tariff and Guidelines for Revenue and Tariff Filing ..........1 1.1.3 Regulations and Orders issued by the Commission ...............................................................1 1.1.4 Constitution of Commission Advisory Committee ..................................................................1 1.2 Background 2 1.2.1 Transfer Scheme..........................................................................................................................2 1.2.2 Policy Directions ..........................................................................................................................2 1.2.3 Determination of BST and Opening Losses..............................................................................3 1.2.4 Effective date of Transfer Scheme ...........................................................................................3 1.2.5 Revision of Guidelines by the Commission ..............................................................................3 1.3 Procedural History.............................................................................................................................................4 1.3.1 ARR & Tariff filings for FY 2002-03 by DVB..................................................................................4 1.3.2 ARR & Tariff filing by the Companies........................................................................................4 1.3.3 Public Notice and response from stakeholders ......................................................................5 1.3.4 Public Hearing .............................................................................................................................7 1.3.5 Post admission interactions........................................................................................................7 1.4 Summary of the petition...................................................................................................................................8 1.5 Layout of this Order...........................................................................................................................................8 2. On the Response from Stakeholders ..............................................................................................................................9 2.1 Procedural Issues ..............................................................................................................................................9 2.1.1 Response From Stakeholders ...............................................................................................9 2.2 Quality of Filing and Additional Information .................................................................................................9 2.2.1 Response From Stakeholders ...............................................................................................9 2.2.2 Response of the Petitioner .......................................................................................................10 2.3 Policy Directions..............................................................................................................................................10 2.3.1 Response From Stakeholders .............................................................................................10 2.4 Privatization Policy and Reform Process ......................................................................................................11 2.4.1 Response From Stakeholders .............................................................................................11 2.5 Compliance with Directives ..........................................................................................................................11 2.5.1 Response From Stakeholders .............................................................................................11 2.6 AT&C Losses 11 2.6.1 Response From Stakeholders .............................................................................................11 2.6.2 Response of the Petitioner .....................................................................................................13 2.7 ARR and Revenue Gap for FY 2002-03 (9 Months) and FY 2003-04 .........................................................13 2.7.1 Response From Stakeholders .............................................................................................13 2.7.2 Response of the Petitioner .......................................................................................................14 2.8 Treatment of past Arrears Collected ............................................................................................................15 2.8.1 Response From Stakeholders .............................................................................................15 2.8.2 Response of the Petitioner .......................................................................................................15 2.9 Depreciation charges ....................................................................................................................................15 2.9.1 Response From Stakeholders .............................................................................................15 2.10 Investments 15 2.10.1 Response From Stakeholders .............................................................................................15 2.11 Non-Tariff Income ...........................................................................................................................................16 2.11.1 Response From Stakeholders .............................................................................................16 2.11.2 Response of the Petitioner .......................................................................................................16 2.12 Tariff Policy / Tariff Structure/ Tariff Rates......................................................................................................16 2.12.1 Response From Stakeholders .............................................................................................16 2.12.2 Response of the Petitioner .......................................................................................................19 2.13 Cross Subsidy...................................................................................................................................................21 2.13.1 Objections..................................................................................................................................21 ivDelhi Electricity Regulatory Commission 2.14 Minimum Charges.......................................................................................................................................... 21 2.14.1 Response From Stakeholders............................................................................................. 21 2.14.2 Response of the Petitioner ......................................................................................................22 2.15 Demand Charges / Demand Surcharge..................................................................................................... 24 2.15.1 Response From Stakeholders............................................................................................. 24 2.15.2 Response of the Petitioner ......................................................................................................25 2.16 Delayed
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