Telangana State Electricity Regulatory Commission 5thFloor, Singareni Bhavan, Red Hills, Lakdi-ka-pul, Hyderabad 500004. TARIFF ORDER Retail Supply Tariffs for FY 2018-19 In the supply areas of Southern Power Distribution Company of Telangana Limited (TSSPDCL) and Northern Power Distribution Company of Telangana Limited (TSNPDCL) 27.03.2018 TABLE OF CONTENTS 1 INTRODUCTION .............................................................................................................................................. 2 1.1 BACKGROUND ......................................................................................................................................... 2 1.2 ADMISSION OF PETITIONS AND REGULATORY PROCESS ............................................................ 3 1.3 DATA GAPS AND LICENSEE’S RESPONSES ....................................................................................... 5 1.4 COMMUNICATION WITH THE GOVERNMENT OF TELANGANA STATE REGARDING SUBSIDY ................................................................................................................................................................. 5 1.5 STRUCTURE OF THE ORDER ................................................................................................................. 6 2 STAKEHOLDER CONSULTATION .............................................................................................................. 7 2.1 CONSUMER CATEGORY WISE SALES FOR FY 2018-19 .................................................................... 7 2.2 ENERGY REQUIREMENT FOR FY 2018-19 ........................................................................................... 9 2.3 ENERGY AVAILABILITY FOR FY 2018-19 ......................................................................................... 10 2.4 RENEWABLE POWER PURCHASE OBLIGATION (RPPO) ............................................................... 14 2.5 POWER PURCHASE COST FOR FY 2018-19........................................................................................ 16 2.6 COST OF SERVICE FOR FY 2018-19..................................................................................................... 18 2.7 CONSUMER CATEGORISATION .......................................................................................................... 19 2.8 TARIFF PROPOSALS FOR FY 2018-19 ................................................................................................. 23 2.9 TARIFF FOR LT IV CATEGORY ........................................................................................................... 23 2.10 TARIFF FOR DRINKING WATER PLANTS SET UP BY BALAVIKASA .......................................... 24 2.11 TARIFF FOR HT I(A) (OPTIONAL) CATEGORY ................................................................................. 24 2.12 TARIFF FOR START-UP POWER .......................................................................................................... 27 2.13 TARIFF FOR ELECTRIC VEHICLE CHARGING STATIONS/ CHARGING INFRASTRUCTURE/ BATTERY SWAP SET UP ................................................................................................................................... 28 2.14 TARIFF FOR AIRPORTS ......................................................................................................................... 28 2.15 TARIFF FOR HT IV(A) CATEGORY (LIFT IRRIGATION SCHEMES) .............................................. 31 2.16 TARIFF FOR HT V(A) (RAILWAY TRACTION) .................................................................................. 36 2.17 LOAD FACTOR INCENTIVE ................................................................................................................. 38 2.18 INTEREST ON DELAYED PAYMENTS ................................................................................................ 38 2.19 PAYMENT REBATES ............................................................................................................................. 40 2.20 CHARGES FOR BILL PAYMENT .......................................................................................................... 40 2.21 GOVERNMENT SUBSIDY...................................................................................................................... 41 2.22 REVENUE AND REVENUE DEFICIT FOR FY 2018-19 ...................................................................... 42 2.23 TRUING UP PROPOSALS ....................................................................................................................... 44 2.24 CREATION OF REGULATORY ASSET ................................................................................................ 45 2.25 TOD CHARGES ........................................................................................................................................ 45 2.26 ARREARS ................................................................................................................................................. 45 2.27 OPERATIONAL ISSUES ......................................................................................................................... 46 2.28 OTHERS .................................................................................................................................................... 52 3 AGGREGATE REVENUE REQUIREMENT FOR FY 2018-19................................................................. 56 3.1 SALES PROJECTIONS FOR FY 2018-19 ............................................................................................... 56 i 3.2 ENERGY REQUIREMENT FOR FY 2018-19 ......................................................................................... 62 3.3 ENERGY AVAILABILITY FOR FY 2018-19 ......................................................................................... 64 3.4 MONTHLY MERIT ORDER DISPATCH ............................................................................................... 74 3.5 COST OF POWER PURCHASE .............................................................................................................. 74 3.6 SALE OF SURPLUS ENERGY ................................................................................................................ 80 3.7 DISCOM WISE ALLOCATION OF ENERGY ....................................................................................... 81 3.8 DISCOM TO DISCOM (D-D) ENERGY TRANSFER AND D-D COST ADJUSTMENT .................... 81 3.9 ADDITIONAL INTEREST ON PENSION BONDS ................................................................................ 81 3.10 POWER PURCHASE COST..................................................................................................................... 81 3.11 DISTRIBUTION COST ............................................................................................................................ 83 3.12 TRANSMISSION COST ........................................................................................................................... 83 3.13 PGCIL & POSOCO CHARGES ................................................................................................................ 83 3.14 SLDC CHARGES ...................................................................................................................................... 84 3.15 INTEREST ON CONSUMER SECURITY DEPOSIT ............................................................................. 84 3.16 SUPPLY MARGIN ................................................................................................................................... 84 3.17 OTHER CHARGES................................................................................................................................... 84 3.18 AGGREGATE REVENUE REQUIREMENT (ARR) .............................................................................. 85 3.19 SAVINGS DUE TO UDAY SCHEME ..................................................................................................... 85 3.20 NET REVENUE REQUIREMENT FOR FY 2018-19 .............................................................................. 86 4 COST OF SERVICE FOR FY 2018-19 .......................................................................................................... 87 4.1 COST OF SERVICE.................................................................................................................................. 87 5 TARIFF DESIGN ............................................................................................................................................. 90 5.1 CATEGORISATION OF ELECTRIC VEHICLE CHARGING STATIONS ........................................... 90 5.2 TARIFF PROPOSAL FOR HT IV(A) ....................................................................................................... 91 5.3 TARIFF OF HT VIII (RESCO) ................................................................................................................. 93 5.4 LEVY OF STANDBY CHARGES ........................................................................................................... 95 6 RETAIL SUPPLY TARIFF SCHEDULE FOR FY 2018-19 ........................................................................ 97 6.1 TARIFF PROPOSALS OF THE DISCOMS ............................................................................................. 97 6.2 REFERENCE TARIFF SCHEDULE ........................................................................................................ 97 6.3 REVENUE AT