Distribution Committee
11/11/2014
PETITIONER
(generators,
RESPONDENTS
(distribution
transmission
licensee, Distribution
licensee etc)
companies, consumer
groups etc)
ARGUMENTS
REVIEW
PROCEEDINGS
ORDERS
(before SERC)
CERC
11/11/2014
Appeal in
Appellate
Tribunal
11/11/2014
Section
63:
Notwithstanding
anything
(c)
(d)
(e)
(f)
discharged
the
11/11/2014
10
a)
b)
c)
d)
the following
11/11/2014
11
For
The
3)
According
According to Para 7.1.4 of Tariff policy 2006; STU should undertake network
expansion after identifying the requirements in consonance with the National
Electricity Plan and in consultation with stakeholders, and taking up the execution
after due regulatory approvals.
As per Para 7.1.7 of Tariff Policy; after coming into effect of the CERC regulation
on framework for the inter-State transmission ,a similar approach should be
implemented by SERCs in next two years for the intra-State transmission, duly
considering factors like voltage, distance, direction and quantum of flow.
As per Para 7.1.8 of Tariff Policy; Metering compatible with the requirements of
the proposed transmission tariff framework should be established on priority
basis. The metering should be compatible with ABT requirements, which would
also facilitate implementation of Time of Day (ToD) tariffs.
According to Para 7.2.2 of Tariff policy 2006; The Appropriate Commission may
require necessary studies to be conducted to establish the allowable level of
system loss for the network configuration, and the capital expenditure required
to augment the transmission system and reduce system losses. Since additional
flows above a level of line loading leads to significantly higher losses, STU
should ensure upgrading of transmission systems to avoid the situations of
overloading. The Appropriate Commission should permit adequate capital
investments in new assets for upgrading the transmission system.
Energy
Components of Tariff
Cost of Power Purchase
Transmission Charges
NLDC/RLDC/SLDC Charges
Interest on Working Capital +
O& M Charges
Interest On Loan
Depreciation
ROE
Provision for Bad debts
(Minus): Non Tariff Income
ROE
KSERC
draft
14%
REMARK
DEPRECIATION
INTERST ON
LOAN
Accordi
ng to
Annex-I
O&M
EXPENSE
INTEREST ON
WC
NOMATIVE
AVAILABILIT
Y
KSERC draft
REMARK
normative return.
RENOVATION
&
MODERNISATION
ADDITNL.
CAPITALISATION
DEBT EQUITY
RATIO
REMARK
No specific
directives
Allowed according
to the specific
original approval &
conditions
70 : 30
PARAMETER
RECOVERY OF
FXD. CHARGE
REBATE &
SURCHARGE
KSERC draft
REMARK
Need a two part tariff structure for all the
categories. Ensure recovery of investment cost &
normative O&M through annual fixed charge
collected monthly.
Power purchase cost, transmission &
distribution loss and variations in O&M expense
through variable charge.
70:30
Return in equity: 16.5% (Post-Tax) proposed in tune with CERC T&C of tariff 2014
Interest on Loan:
Computed loan wise on normative loan
Depreciation
Depreciation rate: Link to useful life of assets in tune with CERC data
Repayment linked to depreciation
90% of asset value recoverable (10% salvage value ) for items excluding IT
equipment & software
O&M Expenses
Administrative Expenses
Repair & Maintenance: Need to be Asset Focused
Corporate Expenses
Miscellaneous Expenses
Reasonable compensation for DA & pay hikes need to be
factored into O&M Norms