BEFORE THE HON’BLE BIHAR ELECTRICITY REGULATORY COMMISSION FILING OF THE PETITION FOR TRUE UP FOR FY 2019-20, ANNUAL PERFORMANCE REVIEW (APR) FOR FY 2020-21 AND ANNUAL REVENUE REQUIREMENT (ARR) FOR FY 2021-22 FILED BY, SOUTH BIHAR POWER DISTRIBUTION COMPANY LIMITED, PATNA CHIEF ENGINEER (COMMERCIAL), SBPDCL 2nd FLOOR, VIDYUT BHAWAN, BAILEY ROAD, PATNA - 800 001 South Bihar Power Distribution Company Limited Contents 1. Introduction ........................................................................................................................................10 1.1. Background ......................................................................................................................................10 1.2. Profile of SBPDCL ............................................................................................................................11 1.3. Procedural History ............................................................................................................................12 1.4. Judgement of Hon’ble Supreme Court vide Appeal no 239-240 of 2019 dated 4th Feb 2019 .........14 1.5. Judgment of Hon’ble APTEL on Appeal No. 141 and Appeal No. 142 of 2016 ...............................14 1.6. Appeal no 225/2019 .........................................................................................................................16 1.7. Appeal no 293 and 294 of 2019 .......................................................................................................16 1.8. Appeal no 278 of 2019 .....................................................................................................................16 1.9. Appeal no 154 of 2017 .....................................................................................................................16 1.10. Review Petition and APTEL Appeal against Tariff Order dated 20th March 2020 .........................16 1.11. Instant Petition ...............................................................................................................................17 1.12. Contents of the Petition ..................................................................................................................18 2. Overall approach for present filing ..................................................................................................19 2.1. Present Approach ............................................................................................................................19 2.2. Data and information sources for estimating the Aggregate Revenue Requirement ......................19 3. True-up Summary for FY 2019-20 ....................................................................................................20 3.1. Preamble ..........................................................................................................................................20 3.2. Number of Consumers, Connected Load and Sales .......................................................................20 3.3. AT&C Loss .......................................................................................................................................22 Collection Efficiency ...................................................................................................................................24 Calculation of AT&C Loss ..........................................................................................................................24 3.4. Transmission losses .........................................................................................................................25 3.5. Power Purchase ...............................................................................................................................25 3.6. Actual Power Purchase quantum .....................................................................................................27 3.7. Energy Balance ................................................................................................................................29 3.8. Power Purchase Cost ......................................................................................................................30 3.9. Transmission charges ......................................................................................................................36 3.10. Disallowance of power purchase due to excess Distribution loss .................................................36 3.11. Capital Investment Plan, Capitalization and Funding ....................................................................39 3.12. Gross Fixed Assets ........................................................................................................................40 3.13. Depreciation ...................................................................................................................................40 3.14. Other finance charges ....................................................................................................................41 3.15. Operation & Maintenance charges ................................................................................................42 3.16. Interest on working capital .............................................................................................................47 3.17. Return on Equity ............................................................................................................................49 3.18. Interest on Loans ...........................................................................................................................50 3.19. Interest on Consumer Security Deposit .........................................................................................51 3.20. Non-Tariff income ...........................................................................................................................52 3.21. Revenue from Sale of Power at Existing Tariff ..............................................................................53 South Bihar Power Distribution Company Limited 3.22. Net ARR and revenue gap for FY 2019-20 ....................................................................................54 4. APR Summary for FY 2020-21 ..........................................................................................................58 4.1. Preamble ..........................................................................................................................................58 4.2. Estimate of category wise number of consumers, connected load and sales for FY 2020-21 ........58 4.3. Distribution Loss ...............................................................................................................................61 4.4. State Transmission losses ...............................................................................................................64 4.5. Central Transmission Loss...............................................................................................................64 4.6. Power Purchase ...............................................................................................................................64 4.8. Power Purchase Cost ......................................................................................................................71 4.9. Transmission Charges .....................................................................................................................75 4.10. Capital Investment Plan, Capitalization and Funding ....................................................................75 4.11. Operation & Maintenance (O&M) Expenses ..................................................................................77 4.12. Gross Fixed Assets ........................................................................................................................80 4.13. Depreciation on Gross Fixed Assets ..............................................................................................81 4.14. Return of Equity .............................................................................................................................82 4.15. Interest on Consumer Security Deposit .........................................................................................83 4.16. Interest on Working Capital ............................................................................................................83 4.17. Non-Tariff Income ..........................................................................................................................85 4.18. Interest on Normative Debt ............................................................................................................86 4.19. Other Finance Charges ..................................................................................................................87 4.20. Revenue from Sale of Power at Existing Tariff ..............................................................................87 4.21. Net ARR and Revenue Gap for FY 2020-21 ..................................................................................88 5. Annual Revenue Requirement (ARR) for FY 2021-22 ....................................................................90 5.1. Preamble ..........................................................................................................................................90 5.2. Historical Assessment of Number of Consumers and Sales ...........................................................90