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Tariff Order TARIFF ORDER Business Plan for the MYT period for FY 2015-16 to FY 2017-18 Petition No. 152 of 2014 Review of ARR of FY 2014-15 And Determination of Aggregate Revenue Requirement for MYT Period FY 2015-16 to FY 2017-18 & Retail Tariff for FY 2015-16 Petition no. 155/2014 For Electricity Department, UT of Andaman & Nicobar Islands JOINT ELECTRICITY REGULATORY COMMISSION FOR GOA AND UNION TERRITORIES 2nd floor, HSIIDC Office Complex, Vanijya Nikunj, Udyog Vihar, Phase V, Gurgoan, (122016) Haryana Telephone: +91(124) 2342851 Tele fax: +91 (124) 2342853 Website: www.jercuts.gov.in Date: 31.03.2015 JERC Order on ARR & Tariff Petition for ED, UT of Andaman & Nicobar Islands for FY 2015-16 Contents 1. INTRODUCTION..............................................................................................................12 1.1 JERC Formation ..............................................................................................................12 1.2 Electricity Department, UT of Andaman & Nicobar Islands.................................................12 1.3 Filing of Petition..............................................................................................................14 1.4 Admission of Petition ......................................................................................................14 1.5 Interaction with the petitioner.........................................................................................15 1.6 Public Hearing Process ....................................................................................................16 1.7 Notice for public hearing .................................................................................................16 2. BRIEF SUMMARY OF ARR & TARIFF PETITION FOR MYT PERIOD FY 2015-16 to FY 2017-18.21 2.1 Introduction ...................................................................................................................21 2.2 About Electricity Department of Andaman & Nicobar Islands.............................................21 2.3 Petition Summary for Aggregate Revenue Requirement for the MYT Period FY 2015-16 to FY 2017-18 .........................................................................................................................22 2.4 Summary of the Tariff Proposal for the MYT Period...........................................................24 2.5 Prayer to the Hon’ble Commission ...................................................................................25 3. APPROACH OF THE ORDER FOR DETERMINATION OF ARR & TARIFF FOR THE CONTROL PERIOD FY 2015-16 TO FY 2017-18 ..................................................................................27 3.1 Introduction ...................................................................................................................27 3.2 Approach for True-up for FY 2013-14 ...............................................................................27 3.3 Approach for Review for FY 2014-15 ................................................................................28 3.4 Approach for Determination of ARR & Retail Tariff for FY 2015-16......................................30 4. SUMMARY OF OBJECTIONS RAISED/SUGGESTIONS MADE, PETITIONER’s AND COMMISSION’S VIEWS............................................................................................................................33 5. TRUE-UP FOR FY 2013-14 ................................................................................................37 5.1 Petitioner’s Submission ...................................................................................................37 5.2 Commission’s Analysis ......................................................................................................37 6. REVIEW OF ARR FOR FY 2014-15 .....................................................................................39 6.1 Background....................................................................................................................39 6.2 Review of ARR for FY 2014-15..........................................................................................40 6.3 Consumers, Connected load and Energy Sales ..................................................................41 6.4 Transmission & Distribution Loss .....................................................................................45 6.5 Energy Balance ...............................................................................................................47 6.6 Power Purchase Quantum and Cost.................................................................................49 6.7 Operation & Maintenance Expenses ................................................................................69 6.8 Depreciation...................................................................................................................73 6.9 Interest & Finance Charges including working Capital ........................................................73 6.10 Non-Tariff Income...........................................................................................................74 6.11 Return on Equity/Capital Base .........................................................................................75 6.12 Review of ARR for FY 2014-15..........................................................................................76 7. Aggregate Revenue Requirement for FY 2015-16 .............................................................78 7.1 Background....................................................................................................................78 7.2 Analysis of Aggregate Revenue Requirement for FY 2015-16..............................................78 7.3 Consumers, Connected load and Energy Sales...................................................................79 7.4 Transmission & Distribution Losses..................................................................................88 7.5 Energy Balance ..............................................................................................................89 7.6 Power Purchase Quantum and Cost .................................................................................91 7.7 Operation and Maintenance Expenses ............................................................................ 104 JOINT ELECTRICITY REGULATORY COMMISSION FOR THE STATE OF GOA AND UNION TERRITORIES Page 2 JERC Order on ARR & Tariff Petition for ED, UT of Andaman & Nicobar Islands for FY 2015-16 7.7.1 Employee Expenses ...................................................................................................... 105 7.7.2 Administration and General Expenses............................................................................ 106 7.7.3 Repair and Maintenance Expenses................................................................................. 107 7.8 Capital Expenditure and Capitalisation........................................................................... 108 7.9 Gross Fixed Assets (GFA) ............................................................................................... 109 7.10 Depreciation................................................................................................................. 110 7.11 Return on Capital Base .................................................................................................. 111 7.12 Interest and Finance Charges......................................................................................... 112 7.12.1 Interest on Loan / Debt ................................................................................................. 112 7.12.2 Interest on Working Capital........................................................................................... 113 7.12.3 Interest on Security Deposit .......................................................................................... 114 7.12.4 Provision for Bad and Doubtful Debts............................................................................. 115 7.13 Non-Tariff Income ........................................................................................................ 115 7.14 Aggregate Revenue Requirement for FY 2015-16............................................................. 116 7.15 Average Cost of Supply.................................................................................................. 117 7.16 Revenue at Existing Tariff and Gap for FY 2015-16........................................................... 118 8. DIRECTIVES .................................................................................................................. 120 9. CONCLUSION OF COMMISSION’s ORDER....................................................................... 149 10. TARIFF SCHEDULE......................................................................................................... 152 JOINT ELECTRICITY REGULATORY COMMISSION FOR THE STATE OF GOA AND UNION TERRITORIES Page 3 JERC Order on ARR & Tariff Petition for ED, UT of Andaman & Nicobar Islands for FY 2015-16 List of Tables Table 1.1: Formal Interactions with the Petitioner............................................................................... 16 Table 1.2: Schedule of Public hearing at Port Blair............................................................................... 17 Table 1.3: Details of public notice published by Commission .............................................................. 17 Table 1.4: Details of Repeat public notice
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