DELHI TRANSCO LIMITED TARIFF ORDER FY 2018-19 A1: INTRODUCTION ..............................................................................................................10 DELHI TRANSCO LIMITED (DTL) .................................................................................................10 DELHI ELECTRICITY REGULATORY COMMISSION ........................................................................10 THE STATE ADVISORY COMMITTEE MEETING ............................................................................10 FILING OF PETITION FOR TRUE UP AND ARR ..............................................................................12 FILING AND ACCEPTANCE OF PETITION .....................................................................................12 INTERACTION WITH THE PETITIONER ........................................................................................12 PUBLIC NOTICE ..........................................................................................................................13 LAYOUT OF THE ORDER .............................................................................................................15 APPROACH OF THE ORDER ........................................................................................................16 APPROACH FOR TRUE-UP OF FY 2016-17 ..................................................................................16 APPROACH FOR ARR OF FY 2018-19 ..........................................................................................17 A2: STAKEHOLDER’S COMMENTS.........................................................................................18 INTRODUCTION .........................................................................................................................18 ISSUE 1: METHODOLOGY FOR TREATMENT OF TRANSMISSION CHARGES .................................18 ISSUE 2: EMPLOYEE EXPENSES ..................................................................................................20 ISSUE 3: A&G EXPENSES ............................................................................................................21 ISSUE 4: R&M EXPENSES ...........................................................................................................22 ISSUE 5: EFFICIENCY FACTOR .....................................................................................................23 ISSUE 6: INCOME TAX ................................................................................................................24 ISSUE 7: NON TARIFF INCOME ...................................................................................................26 ISSUE 8: CALCULATION OF WORKING CAPITAL ..........................................................................30 ISSUE 9: COMPUTATION OF WEIGHTED AVERAGE COST OF CAPITAL ........................................30 ISSUE 10: NON TRUING UP OF SLDC ARR ...................................................................................31 ISSUE 11: CARRYING COST .........................................................................................................32 ISSUE 12: DVB ARREARS ............................................................................................................32 ISSUE 13: NON-UTILISATION OF DSM POOL ACCOUNT ..............................................................34 A3: TRUE UP FOR FY 2016-17 ...............................................................................................36 OPERATION & MAINTENANCE EXPENSES ..................................................................................36 Delhi Electricity Regulatory Commission Page 2 DELHI TRANSCO LIMITED TARIFF ORDER FY 2018-19 DETERMINATION OF INFLATION FACTOR ..................................................................................36 EMPLOYEE EXPENSES ................................................................................................................36 A&G EXPENSES ..........................................................................................................................37 REPAIR & MAINTENANCE EXPENSES..........................................................................................38 EMPLOYEE EXPENSES ................................................................................................................40 A&G EXPENSES ..........................................................................................................................41 R&M EXPENSES .........................................................................................................................42 ASSETS CAPITALIZATION............................................................................................................43 DEPRECIATION ..........................................................................................................................44 WORKING CAPITAL REQUIREMENT ...........................................................................................45 RETURN ON CAPITAL EMPLOYED...............................................................................................46 NON TARIFF INCOME ................................................................................................................48 INCOME TAX EXPENSES .............................................................................................................50 TRUE UP OF AGGREGATE REVENUE REQUIREMENT (ARR) FOR FY 2016-17 ...............................51 BALANCE IMPACT OF TRUE UP FOR FY 2016-17 ........................................................................51 A4: ANALYSIS OF AGGREGATE REVENUE REQUIREMENT (ARR) FOR FY 2018-19 ..................53 BACKGROUND ...........................................................................................................................53 OPERATION & MAINTENANCE EXPENSES ..................................................................................53 EMPLOYEE EXPENSES ................................................................................................................53 WORKING CAPITAL ....................................................................................................................56 ASSETS CAPITALIZATION............................................................................................................57 DEPRECIATION ..........................................................................................................................58 RETURN ON CAPITAL EMPLOYED...............................................................................................60 NON TARIFF INCOME ................................................................................................................67 AGGREGATE REVENUE REQUIREMENT (ARR) FOR FY 2018-19 ...................................................67 IMPACT OF DVB ARREARS AS PER ATE JUDGEMENT ..................................................................68 A5 TRANSMISSION TARIFF DESIGN .....................................................................................70 A6: DIRECTIVES ....................................................................................................................73 Delhi Electricity Regulatory Commission Page 3 DELHI TRANSCO LIMITED TARIFF ORDER FY 2018-19 Table 1: 17th State Advisory Committee Meeting ......................................................................11 Table 2: List of Correspondence with the Petitioner ..................................................................13 Table 3: Month wise details of STOA amount received and refunded by DTL .........................27 Table 4: Petitioner Submission - Employee Expenses for FY 2016-17 (Rs.Crore) ........................37 Table 5: Petitioner Submission - A&G Expenses for FY 2016-17 (Rs. Crore) ................................38 Table 6: Petitioner Submission - R&M Expenses for FY 2016-17 (Rs. Crore) ..............................39 Table 7: Petitioner Submission - O&M Expenses for FY 2016-17 (Rs. Crore) ..............................39 Table 8: Commission Approved - Trued up Employee Expenses for FY 2016-17 (Rs. Crore) .......41 Table 9: Commission Approved - Trued up A&G Expenses for FY 2016-17 (Rs. Crore) ................42 Table 10: Commission Approved - Trued- up R&M Expenses for FY 2016-17 ............................43 Table 11: Commission Approved - Trued- up O&M Expenses for FY 2016-17 (Rs. Crore) ..........43 Table 12: Petitioner Submission - Assets Capitalisation for FY 2011-12 to FY 2016-17 (Rs. Cr) ..43 Table 13: Commission Approved - Capitalization provisionally (Rs. Crore) .................................44 Table 14: Petitioner Submission - Depreciation for FY 2016-17 (Rs. Crore) ................................44 Table 15 : Commission Approved - Depreciation for FY 2016-17 (Rs. Crore) .............................45 Table 16: Petitioner Submission - Working Capital for FY 2016-17 (Rs. Crore) ...........................45 Table 17: Commission Approved - Working Capital for FY 2016-17 (Rs. Crore) ..........................46 Table 18: Petitioner Submission - ROCE Calculation for FY 2016-17 (Rs. Crore) .........................47 Table 19: Commission Approved - RoCE for FY 2016-17 (Rs. Crore) ..........................................48 Table 20: Petitioner Submission - Non Tariff Income for FY 2016-17 (Rs. Crore) ........................49 Table 21: Commission Approved - Non Tariff Income for FY 2016-17 (Rs. Crore) .......................50 Table 23: Commission Approved - Income Tax