Retail Supply Tariffs 2018-19 ORDER on Tariff for Retail Sale of Electricity during FY2018-19 27th March, 2018 Andhra Pradesh Electricity Regulatory Commission 4th Floor, Singareni Bhavan, Red Hills, Lakdi-ka-pul, Hyderabad 500 004 Andhra Pradesh Electricity Regulatory Commission 4th Floor, Singareni Bhavan, Red Hills, Lakdi-ka-pul, Hyderabad 500 004 Retail Supply Tariff Order for FY2018-19 ORDER on Tariff for Retail Sale of Electricity during FY2018-19 In the areas of Supply of Southern Power Distribution Company of A.P. Ltd. (APSPDCL) and Eastern Power Distribution Company of A.P. Ltd. (APEPDCL) 27th March, 2018 CONTENTS CHAPTER DESCRIPTION PAGE CHAPTER – I INTRODUCTION .............................................................................................. 2 CHAPTER - II STATEMENT OF GOVERNMENT OF ANDHRA PRADESH ................. 18 CHAPTER – III OBJECTIONS, RESPONSES AND COMMISSION’S VIEWS ................... 20 CHAPTER-IV SALES, LOSSES AND POWER PURCHASE REQUIREMENT ...................... 222 CHAPTER - V POWER PURCHASE COST FOR FY2018-19 ....................................... 236 CHAPTER - VI AGGREGATE REVENUE REQUIREMENT ............................................ 249 CHAPTER - VII COST OF SERVICE ..................................................................................... 256 CHAPTER – VIII REVENUE AND REVENUE GAP .............................................................. 262 CHAPTER- IX REFERENCE TARIFF SCHEDULE........................................................... 265 CHAPTER – X FULL COST RECOVERY TARIFF DETERMINATION ........................ 278 CHAPTER – XI RETAIL SUPPLY TARIFF SCHEDULE ................................................... 284 CHAPTER – XII CROSS SUBSIDY SURCHARGE AND ADDITIONAL SURCHARGE . 332 i | P a g e LIST OF TABLES Table No. Description Page No. Table 1: Filings - Sales, Losses and Power Purchase Requirement (MU) ............................. 7 Table 2: Filings: Power Purchase Requirement and Surplus (MU) ....................................... 8 Table 3: Aggregate Revenue Requirement (Arr) / Cost Items (` Cr) .................................. 10 Table 4: Filings: ARR, ERC and RG for FY 2018-19 (` Cr) ...................................................... 11 Table 5: Filings: ARR, Revenue, Subsidy Requirement for FY 2018-19 (` Cr) .................. 11 Table 6: Sales volume approved for FY 2017-18 and projections for FY 2018-19 ......... 223 Table 7: Sales volume estimates for FY 2017-18 and projections for FY 2018-19 ....... 224 Table 8: Sales volume estimates and approvals for FY 2017-18 (MU)............................ 225 Table 9: Sales volume estimates and approvals for FY 2018-19 (MU)............................ 231 Table 10: Sales volume estimates by the Licensees for FY 2018-19 .................................. 232 Table 11: SPDCL Network Losses for FY 2018-19 .................................................................. 233 Table 12: EPDCL Network Losses for FY 2018-19 .................................................................. 233 Table 13: Power Purchase Requirement for FY 2018-19 as per filing .............................. 234 Table 14: Power Purchase Requirement for FY 2018-19 approved by APERC ................ 235 Table 15: Filings: Power Purchase Cost for FY 2018-19 ....................................................... 236 Table 16: Energy Availability (MU) for FY 2018-19 .............................................................. 239 Table 17: Energy Despatch (MU) for FY 2018-19 ................................................................... 240 Table 18: Power Purchase Costs approved by APERC for all the Licensees for FY 2018-19. ................................................................................................................. 247 Table 19: EPDCL - Power Purchase Costs approved by APERC for FY 2018-19 ............... 247 Table 20: SPDCL - Power Purchase Cost approved by APERC for FY 2018-19 ................. 248 Table 21: Filings: ARR for FY 2018-19 ..................................................................................... 249 Table 22: Transmission Cost for FY 2018-19 .......................................................................... 250 Table 23: SLDC Cost for FY 2018-19 ......................................................................................... 251 Table 24: Distribution Cost for FY 2018-19 ............................................................................ 252 Table 25: PGCIL and ULDC Costs for FY 2018-19 ................................................................... 252 Table 26: Power Purchase Cost For FY 2018-19 .................................................................... 253 Table 27: Approved:Interest Cost on Consumer Security Deposits for FY 2018-19 ....... 253 Table 28: Approved: Retail Supply Margin for FY 2018-19 (` Cr) ...................................... 254 ii | P a g e Table 29: Approved: Expenses on Energy Efficiency Measures for FY 2018-19 .............. 254 Table 30: Aggregate Revenue Requirement for Retail Supply Business for FY 2018-19 .................................................................................................................. 255 Table 31: Approved Energy Sales for FY 2018-19 (MU) ...................................................... 259 Table 32: Approved AT&C Losses for FY 2018-19 (%) ........................................................ 259 Table 33: Power Purchase Requirement / Energy Input for different voltage levels for FY 2018-19 (MU) ................................................................................................. 260 Table 34: ARR Allocation to different voltage levels for FY 2018-19 (` Cr) .................. 260 Table 35: Cost of Service for FY 2018-19 (`/Unit) ................................................................ 260 Table 36: Cost of Service: Filings and Approved (`/Unit) ................................................... 261 Table 37: Ratio of Average Billing Rate (ABR) and Average Cost of Supply (ACOS) ...... 261 Table 38: Sales and Revenue estimated by Licensees for FY 2018-19.............................. 262 Table 39: Revenue Requirement and Revenue Gap estimated by Licensees for FY2018-19 ( ` Cr.) .............................................................................................. 263 Table 40: Sales and Revenue computed by the Commission for FY 2018-19 (` Cr) ....... 263 Table 41: Revenue Requirement and Revenue Gap determined by the Commission for FY2018-19 (` Cr). ................................................................................................ 264 Table 44: Full Cost Recovery Tariff Schedule (FCRTS) for FY2018-19 (Rates / Charges as determined by APERC for FY2018-19) .................................................................. 280 Table 45: APSPDCL - Cross Subsidy Surcharges for FY 2018-19 ........................................ 334 Table 46: APEPDCL - Cross Subsidy Surcharges for FY2018-19 ......................................... 335 iii | P a g e ANNEXURES Annexure - 01 Public Notice of ARR & FPT for FY 2018-19 .................................................................... 339 Annexure - 02 Public Notice on Hearing Schedule ................................................................................ 343 Annexure - 03 List of persons who submitted views / Objections / Suggestions ................................. 345 Annexure - 04 Station wise, Month wise availability of Energy (MU) for FY 2018-19 as per DISCOMs Filing ....................................................................................................................................... 358 Annexure - 05 Station wise, Month wise availability of Energy (MU) for FY 2018-19 as per APERC .... 361 Annexure - 06 Energy (MU) Despatch for FY 2018-19 as per DISCOMs Filing....................................... 364 Annexure - 07 Energy (MU) Despatch for FY2018-19 as per APERC ..................................................... 367 Annexure - 08 Approved Station / Source wise power purchase cost for FY2018-19 - APSPDCL ......... 369 Annexure - 09 Approved Station / Source wise power purchase cost for FY2018-19 - APEPDCL ......... 371 Annexure - 10 Approved Station / Source wise power purchase cost for FY2018-19 - All DISCOMs ... 373 Annexure - 11 Cross Subsdidy Surcharge (CSS) filed by APSPDCL for FY2018-19 ................................. 375 Annexure - 12 Cross Subsdidy Surcharge (CSS) filed by APEPDCL for FY2018-19 ................................. 376 Annexure - 13 Minutes of Joint meeting of State Advisory Committee ................................................ 377 Annexure - 14 GoAP Letter No.3275/Power.I/2017 dated 09.03.2018………………………………………….….385 Annexure - 15 G.O.Rt.No. 39 dated 14.03.2018 …………………………………………………………………………..…..386 Annexure - 16 GoAP Letter No. 298/Power.I/2017 dated 23.03.2018………………………………………….…...387 iv | P a g e ANDHRA PRADESH ELECTRICITY REGULATORY COMMISSION HYDERABAD Present Sri Justice G. Bhavani Prasad, Chairman Dr. P. Raghu, Member Sri P. Rama Mohan, Member Dated 27th March, 2018 In the matter of TARIFF DETERMINATION FOR RETAIL SALE OF ELECTRICITY DURING FY2018-19 in O.P.No.60 of 2017 Eastern Power Distribution Company of Andhra Pradesh Limited (APEPDCL) and O.P.No.61 of 2017 Southern Power Distribution Company of Andhra Pradesh Limited (APSPDCL) The Aggregate Revenue Requirement (ARR) and Filing for Proposed Tariff (FPT) filed by Eastern Power Distribution Company of Andhra Pradesh Limited (APEPDCL or EPDCL), vide O.P.No.