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Retail Supply Tariff Order FY 2015-16

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Retail Supply Tariff Order FY 2015-16 Retail Supply Tariff Order FY 2015-16 MADHYA PRADESH ELECTRICITY REGULATORY COMMISSION 5th Floor, Metro Plaza, Bittan Market, Bhopal - 462 016 AGGREGATE REVENUE REQUIREMENT AND RETAIL SUPPLY TARIFF ORDER FOR FY 2015-16 Petition Nos. Petition No. 30/2014 PRESENT: Dr. Dev Raj Birdi, Chairman A. B. Bajpai, Member Alok Gupta, Member IN THE MATTER OF: Determination of Aggregate Revenue Requirement (ARR) and Retail Supply Tariff for FY 2015-16 based on the ARR & Tariff Application made 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 Madhya Pradesh Power Management Company Limited (MPPMCL). Madhya Pradesh Electricity Regulatory Commission Page 1 Retail Supply Tariff Order FY 2015-16 Table of Contents A1: ORDER .............................................................................................................................. 7 A2: DETAILED REASONS AND GROUNDS ATTACHED WITH RETAIL SUPPLY TARIFF ORDER ISSUED BY THE MPERC ON 17TH APRIL, 2015 IN RESPECT OF PETITION NUMBER 30/2014 .................................................................................................. 15 A3: AGGREGATE REVENUE REQUIREMENT FOR FY 2015-16 OF MADHYA PRADESH POORV, PASCHIM AND MADHYA KSHETRA VIDYUT VITARAN COMPANIES LIMITED (EAST, WEST AND CENTRAL DISCOMS) .............................. 16 Sales forecast as projected by the Petitioners ...................................................................... 16 Commission’s Analysis of Sale .............................................................................................. 17 Energy Balance and Power Purchase as Proposed by the Petitioners .............................. 18 Assessment of Energy Availability by the Petitioners ......................................................20 Assessment of Power Purchase Cost (Fixed and Variable Cost) by the Discoms ...........24 RPO Cost .........................................................................................................................28 Assessment of Other Elements of Power Purchase Cost by the petitioners ....................29 Commission’s Analysis of Energy Balance and Power Purchase ...................................... 33 Distribution Losses ..........................................................................................................33 External (PGCIL) Losses .................................................................................................33 Power Purchase Costs .....................................................................................................46 Capitalization and CWIP ...................................................................................................... 60 Commission’s Analysis on Asset Capitalization.................................................................. 60 Operations and Maintenance Expenses ............................................................................... 61 Petitioners submission .....................................................................................................61 Employee Expenses ..........................................................................................................62 A&G Expenses .................................................................................................................62 R&M Expenses .................................................................................................................63 Commission’s Analysis on O&M Expenses ........................................................................... 63 Depreciation............................................................................................................................ 65 Petitioners submissions ....................................................................................................65 Commission’s Analysis of Depreciation ................................................................................ 65 Interest and Finance Charges ............................................................................................... 67 Petitioners submissions ....................................................................................................67 Commission’s Analysis of Interest and Finance Charges .................................................... 69 Interest on Working Capital ................................................................................................. 71 Petitioners submission .....................................................................................................71 Commission’s Analysis of Interest on Working Capital ....................................................... 72 Interest on Consumer Security Deposit ............................................................................... 73 Petitioners submissions ....................................................................................................73 Commission’s Analysis of Consumer Security Deposit ......................................................... 74 Return on Equity.................................................................................................................... 74 Petitioners submissions ....................................................................................................74 Commission’s Analysis of Return on Equity ......................................................................... 75 Madhya Pradesh Electricity Regulatory Commission Page 2 Retail Supply Tariff Order FY 2015-16 Bad and doubtful debts ......................................................................................................... 76 Petitioners submission .....................................................................................................76 Commission’s Analysis on Bad and Doubtful debts .............................................................. 76 Other Income .......................................................................................................................... 77 Petitioners submission .....................................................................................................77 Commission’s Analysis on Other Income .............................................................................. 78 Segregation of admitted ARR between Wheeling and Retail Sale activities .................... 79 Aggregate Revenue Requirement (ARR) admitted by the Commission for FY 2015-16 79 Revenue from revised tariffs ................................................................................................. 81 A4: WHEELING CHARGES AND CROSS SUBSIDY SURCHARGE .......................... 83 Determination of “wheeling cost”......................................................................................... 83 Determination of Cross-Subsidy Surcharge ........................................................................ 86 A5: FUEL COST ADJUSTMENT CHARGE ..................................................................... 90 A6: PUBLIC OBJECTIONS AND COMMENTS ON LICENSEES’ PETITIONS ....... 95 A7: RETAIL TARIFF DESIGN ......................................................................................... 120 Legal Position ....................................................................................................................... 120 Commission’s Approach to Tariff Determination ............................................................ 120 Linkage to Average Cost of Supply .................................................................................... 120 A8: COMPLIANCE ON DIRECTIVES ISSUED IN TARIFF ORDER FOR FY 2014-15 126 Annexure-1 (List of Objectors) ........................................................................................... 138 Annexure-2 (Tariff Schedules for Low Tension Consumers) .......................................... 147 Annexure-3 (Tariff Schedules for High Tension Consumers) ......................................... 174 Madhya Pradesh Electricity Regulatory Commission Page 3 Retail Supply Tariff Order FY 2015-16 List of Tables Table 1 : Snapshot of the petition for FY 2015-16 (Rs. Crore) ...................................................... 8 Table 2: Public hearings.................................................................................................................. 9 Table 3: Distribution loss reduction trajectory as per Regulations ............................................... 10 Table 4: Status of feeder meterisation .......................................................................................... 10 Table 5: Status of meterisation of un-metered rural domestic consumers/agricultural DTRs ...... 11 Table 6: ARR admitted by the Commission for FY 2015-16 (Rs. Crore) .................................... 12 Table 7: Category wise sale projected by Discoms (MU) ............................................................ 16 Table 8: Category wise sale admitted by the Commission (MU) ................................................. 18 Table 9: Energy balance for FY 2015-16 as proposed by Discoms ............................................. 18 Table 10: Monthly loss percentage as filed .................................................................................. 19 Table 11: MPPMCL Allocated Generating Station submitted by the petitioners for FY 2015-16 ..............................................................................................................................................
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