BEFORE THE GUJARAT ELECTRICITY REGULATORY COMMISSION GANDHINAGAR CASE NO. 1914/2020 Determination of Aggregate Revenue Requirement And Tariff of FY 2021-22 Under GERC (Multi Year Tariff) Regulations, 2016 along with other Guidelines and Directions issued by the GERC from time to time AND under Part VII (Section 61 to Section 64) of the Electricity Act, 2003 read with the relevant Guidelines Filed by:- Paschim Gujarat Vij Company Ltd. Corp. Office: Paschim Gujarat Vij Seva Sadan, Off. Nana Mava Main Road, Laxminagar, Rajkot– 360004. Determination of ARR & Tariff for FY 2021-22 BEFORE THE GUJARAT ELECTRICITY REGULATORY COMMISSION GANDHINAGAR Filing No: Case No: 1914/2020 IN THE MATTER OF Filing of the Petition for determination of ARR & Tariff for FY 2021-22, under GERC (Multi Year Tariff) Regulations, 2016 along with other Guidelines and Directions` issued by the GERC from time to time AND under Part VII (Section 61 to Section 64) of the Electricity Act, 2003 read with the relevant Guidelines AND IN THE MATTER OF Paschim Gujarat Vij Company Limited, Paschim Gujarat Vij Seva Sadan, Off. Nana Mava Main Road, Laxminagar, Rajkot – 360004. PETITIONER Gujarat Urja Vikas Nigam Limited Sardar Patel Vidyut Bhavan, Race Course, Vadodara - 390 007 CO-PETITIONER THE PETITIONER ABOVE NAMED RESPECTFULLY SUBMITS Paschim Gujarat Vij Company Limited 63 Determination of ARR & Tariff for FY 2021-22 TABLE OF CONTENTS SECTION 1. INTRODUCTION .......................................................................................... 68 1.1. PREAMBLE ............................................................................................................. 68 1.2. INTRODUCTION ....................................................................................................... 68 SECTION 2. EXECUTIVE SUMMARY ................................................................................ 71 2.1. PREAMBLE ............................................................................................................. 71 2.2. DETERMINATION OF ARR & TARIFF FOR FY 2021-22 ................................................... 71 2.3. REVENUE GAP FOR FY 2021-22 ................................................................................ 71 2.4. PROPOSED CHANGES IN THE TARIFF STRUCTURE FOR FY 2021-22 .................................... 73 SECTION 3. DETERMINATION OF ARR & TARIFF FOR FY 2021-22 .................................... 74 3.1. PREAMBLE ............................................................................................................. 74 3.2. PROJECTION OF ENERGY REQUIREMENT FOR FY 2021-22 .............................................. 74 3.3. DISTRIBUTION LOSSES .............................................................................................. 81 3.4. ENERGY BALANCE ENERGY REQUIREMENT PROJECTION FOR PGVCL ................................. 81 3.5. ESTIMATION OF ARR FOR FY 2021-22 ....................................................................... 82 3.6. POWER PURCHASE COST FOR FY 2021-22 .................................................................. 82 3.7. CAPITAL EXPENDITURE FOR FY 2021-22 ..................................................................... 90 3.8. FUNDING OF CAPEX ............................................................................................... 93 3.9. OPERATION & MAINTENANCE EXPENSES ..................................................................... 93 3.10. DEPRECIATION ........................................................................................................ 94 3.11. INTEREST ON LOAN .................................................................................................. 94 3.12. INTEREST ON WORKING CAPITAL ................................................................................ 95 3.13. RETURN ON EQUITY ................................................................................................. 95 3.14. PROVISION FOR BAD AND DOUBTFUL DEBTS ................................................................. 96 3.15. TAXES ................................................................................................................... 96 3.16. NON-TARIFF INCOME ............................................................................................... 96 3.17. PROJECTED ARR FOR FY 2021-22 ............................................................................. 97 SECTION 4. DETERMINATION OF REVENUE GAP/ (SURPLUS) FOR FY 2021-22 ................ 98 4.1. PREAMBLE ............................................................................................................. 98 4.2. REVENUE GAP/ (SURPLUS) FOR FY 2021-22 WITH EXISTING TARIFF ................................. 98 4.3. REVENUE FROM FPPPA CHARGES .............................................................................. 98 4.4. REVENUE PROJECTION FOR OTHER CONSUMER RELATED INCOME ..................................... 99 4.5. AGRICULTURE SUBSIDY ............................................................................................. 99 4.6. TOTAL REVENUE FOR FY 2021-22 ........................................................................... 100 4.7. ESTIMATED REVENUE GAP/ (SURPLUS) FOR FY 2021-22 ............................................. 100 4.8. PROPOSED CHANGES IN THE TARIFF STRUCTURE FOR FY 2021-22 .................................. 100 SECTION 5. PRAYER .................................................................................................... 101 SECTION 6. ANNEXURE 1: TARIFF SCHEDULE FOR FY 2021-22 ...................................... 104 SECTION 7. ANNEXURE 2: TARIFF FILING FORMATS ..................................................... 124 Paschim Gujarat Vij Company Limited 64 Determination of ARR & Tariff for FY 2021-22 LIST OF TABLES TABLE 1 PROJECTION OF ARR FOR FY 2021-22 ................................................................................... 71 TABLE 2 : FPPPA COMPUTATION FOR FY 2021-22 ............................................................................... 72 TABLE 3: TOTAL PROJECTED REVENUE FOR FY 2021-22 AT EXISTING TARIFF .............................................. 72 TABLE 4: ESTIMATED REVENUE GAP/ (SURPLUS) FOR FY 2021-22 AT EXISTING TARIFF ................................ 73 TABLE 5 : HISTORICAL TREND IN CATEGORY-WISE UNITS SOLD (MUS) ........................................................ 75 TABLE 6 : CATEGORY-WISE CAGR OF UNITS SOLD .................................................................................. 75 TABLE 7 : CATEGORY-WISE NO. OF CONSUMERS .................................................................................... 76 TABLE 8 : CAGR OF NO. OF CONSUMERS .............................................................................................. 76 TABLE 9 : CATEGORY-WISE CONNECTED LOAD (MW/MVA) .................................................................... 76 TABLE 10 : CAGR OF CONNECTED LOAD .............................................................................................. 77 TABLE 11 : PGVCL – NEW CONNECTIONS TO AGRICULTURE CONSUMERS .................................................. 78 TABLE 12 : PGVCL – SALES TO AGRICULTURE CONSUMERS (METERED)....................................................... 79 TABLE 13 : GROWTH RATE FOR SALES, NO. OF CONSUMERS AND CONNECTED LOAD .................................... 80 TABLE 14 : PROJECTION OF SALES (MUS) ............................................................................................. 80 TABLE 15 : PROJECTION OF NO. OF CONSUMERS .................................................................................... 80 TABLE 16 : PROJECTION OF CONNECTED LOAD (MW/MVA) ................................................................... 81 TABLE 17 : DISTRIBUTION LOSS FOR FY 2021-22 .................................................................................. 81 TABLE 18 : ENERGY BALANCE FOR FY 2021-22 .................................................................................... 81 TABLE 19 : CONSOLIDATED ENERGY REQUIREMENT FOR FY 2021-22 (MUS) ............................................. 82 TABLE 20: EXISTING CAPACITY ALLOCATION WITH GUVNL ...................................................................... 82 TABLE 21: NEW CAPACITY ADDITION FROM FY 2021-22 ......................................................................... 84 TABLE 22: ADDITIONAL CAPACITY ENVISAGED FY 2021-22 ..................................................................... 84 TABLE 23: PROCUREMENT FROM RE FOR MEETING PROJECTED RPO .......................................................... 85 TABLE 24 : POWER PURCHASE COST FOR THE FY 2021-22 ..................................................................... 86 TABLE 25 : TRANSMISSION CHARGES FROM FY 2021-22 ........................................................................ 88 TABLE 26 : GUVNL COST FROM FY 2021-22 ...................................................................................... 88 TABLE 27: FIXED COST FOR DISCOM FOR FY 2021-22 ......................................................................... 88 TABLE 28: VARIABLE COST OF DISCOMS FOR FY 2021-22 ....................................................................... 88 TABLE 29: GUVNL NET POWER PURCHASE COST FOR FY 2021-22 ......................................................... 89 TABLE 30: ALLOCATION OF POWER PURCHASE COST .............................................................................. 90 TABLE 31: TOTAL REVENUE GAP/ (SURPLUS) .......................................................................................