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Retail Supply Tariffs 2015-16

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Retail Supply Tariffs 2015-16 ORDER on Tariff for Retail Sale of Electricity during FY2015-16 rd 23 March, 2015 Andhra Pradesh Electricity Regulatory Commission 4th Floor, Singareni Bhavan, Red Hills, Lakdi-ka-pul, Hyderabad 500 004 Andhra Pradesh Electricity Regulatory Commission 4th Floor, Singareni Bhavan, Red Hills, Lakdi-ka-pul, Hyderabad 500 004 Retail Supply Tariff Order for FY2015-16 ORDER on Tariff for Retail Sale of Electricity during FY2015-16 In the Areas of Supply of Southern Power Distribution Company of A.P. LTD. (APSPDCL) and Eastern Power Distribution Company of A.P. LTD. (APEPDCL) rd 23 March, 2015 CONTENTS Chapter Description Page CHAPTER - I INTRODUCTION 2 CHAPTER - II STATEMENT OF GOVERNMENT OF ANDHRA PRADESH 20 CHAPTER – III OBJECTIONS, RESPONSES AND COMMISSION’S VIEWS 22 CHAPTER – IV SALES VOLUME FOR FY2015-16 84 CHAPTER – V POWER PURCHASE REQUIREMENT FOR FY2015-16 99 CHAPTER - VI POWER PURCHSE COST FOR FY2015-16 103 CHAPTER - VII AGGREGATE REVENUE REQUIREMENT FOR FY2015-16 111 CHAPTER - VIII COST OF SERVICE FOR FY2015-16 121 CHAPTER - IX REVENUE AND REVENUE GAP 125 CHAPTER - X REFERENCE TARIFF SCHEDULE 128 CHAPTER - XI FULL COST RECOVERY TARIFF DETERMINATION 141 CHAPTER – XII RETAIL SUPPLY TARIFF SCHEDULE 147 LIST OF ANNEXURES Annexure Description Page ANNEXURE – 01 Tariff for Retail Sale of Electricity for FY2015-16 185 ANNEXURE – 02 Public Notice of ARRs 193 ANNEXURE – 03 Public Notice of FPTs. 195 ANNEXURE – 04 List of persons who submitted views/objections/suggestions 197 ANNEXURE – 05 Energy Availability as per Filings for FY2015-16 (MU) 205 ANNEXURE – 06 Energy Availability as per Approval of APERC for FY2015-16 (MU) 208 ANNEXURE - 07 Energy Despatch as per Approval of APERC for FY2015-16 (MU) 211 ANNEXURE - 08 Station-wise Power Purchase Cost for SPDCL for FY2015-16 214 ANNEXURE - 09 Station-wise Power Purchase Cost for EPDCL for FY2015-16 216 ANNEXURE - 10 Station-wise Power Purchase Cost for Licensees for FY2015-16 218 ANNEXURE - 11 Station-wise Genco Fixed Costs for FY2015-16 (ì Cr.) 220 ANDHRA PRADESH ELECTRICITY REGULATORY COMMISSION HYDERABAD Present Sri. Justice G. Bhavani Prasad, Chairman Dr. P. Raghu, Member Sri. P. Rama Mohan, Member Dated 23rd March, 2015 In the matter of TARIFF DETERMINATION FOR RETAIL SALE OF ELECTRICITY DURING FY2015-16 In O.P.No.1 of 2015 Southern Power Distribution Company of Andhra Pradesh Limited (APSPDCL) and O.P.No.2 of 2015 Eastern Power Distribution Company of Andhra Pradesh Limited (APEPDCL) The Aggregate Revenue Requirement (ARR) and Filing for Proposed Tariff (FPT) filed by Southern Power Distribution Company of Andhra Pradesh Limited (APSPDCL or SPDCL), vide O.P.No.1 of 2015 and Eastern Power Distribution Company of Andhra Pradesh Limited (APEPDCL or EPDCL), vide O.P.No.2 of 2015 in respect of their individual Retail Supply businesses for FY2015-16 came up for consideration before the Commission. Upon following the procedure prescribed for determination of such tariff u/s 64 of the Electricity Act, 2003 (Central Act No.36 of 2003) and after careful consideration of the material available on record, the Commission in exercise of the powers vested in it under the said Central Act No.36 of 2003 and the APERC (Terms and Conditions for Determination of Tariff for Wheeling and Retail Sale of Electricity) Regulation, 2005 (Regulation No.4 of 2005); hereby passes this common order: 1 ORDER CHAPTER - I INTRODUCTION 1. Consequent to coming into force of the Andhra Pradesh State Reorganization Act, 2014 (Central Act No.6 of 2014) (hereinafter referred to as the Reorganization Act) and in terms of the provisions of Schedule XII (C) (3) read with Section 82 of the said Act, the Government of Andhra Pradesh issued notification in G.O.Ms.No.35, Energy (Power III) Department, dt.01.08.2014 and constituted the Andhra Pradesh Electricity Regulatory Commission. APERC (Adaptation Regulation), 2014 2. In exercise of the power conferred by Section 181 of the Central Act No.36 of 2003 and all other powers, including those conferred by the Andhra Pradesh Electricity Reform Act, 1998 (State Act No.30 of 1998) and the Reorganization Act, the Commission issued APERC (Adaptation) Regulation, 2014 (Regulation No.4 of 2014) and notified that with effect from 01.08.2014, all regulations made by, all decisions, directions or orders of, and all the licenses and practice directions issued by the Commission in existence as on the date of G.O.Ms.No.35 dt.01.08.2014 referred to above, shall apply in relation to the State of Andhra Pradesh and shall continue to have effect until duly altered, repealed or amended. The said Regulation No.4 of 2014 is published in the Extraordinary Gazette of the State of Andhra Pradesh on 29.11.2014. Antecedents of Tariff Determination for FY2015-16 3. Regulation No.4 of 2005 notified by the Commission, introduced Multi Year Tariff (MYT) framework and accordingly, each distribution licensee has to file ARR along with FPT with the Commission for determination of Tariff for (a) Distribution business (Wheeling Charges) and (b) Retail Supply Business, for a period of 5 years (called Control Period). The 3rd Control Period covers five years from FY2014-15 to FY2018-19. 4. With regard to determination of Retail Supply Tariff for the 3rd Control Period, the Licensees expressed their inability to submit filings for Retail Supply business for a period of 5 years from FY2014-15 to FY2018-19, as per MYT framework and instead sought the approval of the then Commission to file 2 ARR and FPT on annual basis for the FY2014-15 citing reasons, viz.,(a) significant uncertainty at that time involved in projection of quantum of power to be purchased from various sources as well as in costs, (b) difficulty in meeting Regulatory objectives in a MYT regime in the then prevailing environment, and (c) the then existing demand side uncertainties associated with sales forecast in MYT regime. The then Commission permitted the Licensees to file the ARRs and FPTs for retail supply business for FY2014-15. Accordingly, the four Licensees in the erstwhile State of Andhra Pradesh filed ARRs and FPTs for FY2014-15, but the then Commission could not give effect to any determined retail supply tariff for the FY2014-15 for reasons and circumstances beyond its control. The then prevailing rates for the FY2013- 14 were permitted to be continued for the FY2014-15 also. Filing Requirements 5. The Central Act No.36 of 2003 as well as the Regulation No.4 of 2005 mandate that a distribution licensee shall file for each of its licensed business an application, in such form and in such manner as specified and in accordance with the guidelines issued by the Commission, for each year of the Control Period, not less than 120 days before the commencement of the first year of the Control Period, for approval of the Commission. As the SPDCL and EPDCL (hereinafter jointly referred to as the ‘Distribution Companies’ or ‘DISCOMs’ or ‘Licensees’), have to file their Aggregate Revenue Requirement(ARR) and Filings of Proposed Tariff (FPT) before 30.11.2014 under Regulation No.4 of 2005, the Commission issued Proceedings No.T-2/2014 dt.14.11.2014, directing them to file ARRs and FPTs for Retail Supply Business for FY2015-16 by 30.11.2014. Further it was brought to the notice of the licensees that in view of the order dt.11.11.2011 of the Appellate Tribunal for Electricity (hereinafter referred to as the ATE) passed in O.P.No.1 of 2011, the Commission may be compelled to initiate suo-motu proceedings for tariff determination, in the event of delay in filing ARR and FPT. Permission for Annual Filings and Extension of Time for Filings 6. In view of the constraints/difficulties/uncertainties expressed by the Distribution licensees, the Commission permitted them to file ARRs and FPTs relating to retail supply business on annual basis for FY2015-16, vide 3 Proceedings No.T-3/2014 dt.24.11.2014. In view of such constraints/ difficulties/uncertainties, time for filing ARRs and FPTs for retail supply business for FY2015-16 was extended upto 15.12.2014, vide Proceedings No.T- 4/2014 dt.25.11.2014 and further upto 30.12.2014, vide Proceedings No.T- 6/2014 dt.12.12.2014. Suo-motu Tariff Proceedings 7. On 29.12.2014, an application under Clause 59 of the APERC (Conduct of Business) Regulations, 1999 was filed by the Licensees for extension of time for filing ARRs and FPTs by relaxing the requirement of such filing not less than 120 days before the commencement of the FY2015-16 as stipulated in Clause 6.1 of Regulation No.4 of 2005. After careful consideration of the same and keeping in view the mandatory provisions of the statutes, Rules, Regulations and the binding directions of the ATE, the Commission passed an Order dt.30.12.2014 stating that it will commence necessary action for issuance of a Tariff Order for FY2015-16 on 13.01.2015, thereby giving an opportunity to file ARRs and FPTs on or before 12.01.2015. 8. When the Licensees failed to file ARRs and FPTs and instead filed another application for further extension of time, the Commission passed an order dt.13.01.2015 prescribing procedure which it will adopt and mentioning the tentative schedule for determination of tariff. ARR Filings for FY2015-16 and Public Notice 9. However, before the Commission proceeded to initiate suo-motu proceedings, on 27.01.2015 Licensees filed separate applications for approval of their ARRs for FY2015-16 (25.01.2015 and 26.01.2015 being public holidays).
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