Delhi Transco Limited - DERC

1 Tariff Order for FY 2015-16 Delhi Transco Limited Delhi Electricity Regulatory Commission Page 1 September 2015 CONTENTS A1: INTRODUCTION .. 8 Delhi Transco Limited (DTL) .. 8 Delhi Electricity Regulatory Commission .. 8 The Coordination Forum .. 8 Multi Year Tariff Regulations .. 9 Filing and Acceptance of Petition .. 9 Interaction with the Petitioner .. 10 Public Notice .. 11 Layout of the Order .. 14 Approach of the Order .. 15 Approach for FY 2012-13 to FY 2013-14 .. 15 Approach for FY 2014-15.

2 15 Approach for FY 2015-16.. 16 A2: Response from Stakeholders .. 17 Introduction .. 17 Issue 1: Disbursement of STOA Charges: .. 17 Issue 2: Excess recovery of Transmission Charges over and above allowed in ARR .. 20 Issue 3: Income Tax Expense .. 21 Issue 4: Repair and Maintenance Expenses .. 23 Issue 5: Employee Expenses for FY 2012-13 to FY 2014-15 .. 23 Issue 6: A&G Expenses for FY 2012-13 to FY 2014-15 .. 24 Issue 7: Foreign exchange loss amount sought Rs Crore .. 25 Issue 8: Dividend distribution tax.

3 26 Issue 9: Property tax .. 27 Issue 10: Annual Transmission License fee .. 28 Issue 11: Efficiency Factor .. 28 Issue 12: Rebate of sale/wheeling of power .. 29 Issue 13: Capitalisation of Expenses for FY 2012-13 to FY 2014-15 and FY 30 Issue 14: ARR for FY 2015-16 Impact of True up for 1st control period .. 30 Issue 15: Difference in opening figures of CWIP schedule for FY 2012-13 & FY 2013-14 .. 31 Issue 16: Funding of Pension Trust .. 31 A3: TRUE UP FOR FY 2012-13 and FY 2013-14 .. 40 Background.

4 40 Past Period True-Up of Capitalisation up to FY 2011-12 .. 40 R&M Expenses .. 40 Depreciation .. 41 Return on Capital Employed (RoCE).. 41 True-up for FY 2012-13 and FY 2013-14 .. 44 Operation and Maintenance Expenses .. 44 Working Capital Requirement .. 54 Assets Capitalization .. 55 Depreciation .. 56 Return on Capital Employed (RoCE).. 57 Rebate on Transmission / Wheeling of power .. 62 Income Tax .. 64 Non Tariff Income .. 67 Capitalisation of Expenses .. 69 Aggregate Revenue Requirement (ARR).

5 70 A4: ARR FOR FY 2015-16 .. 72 Tariff Order for FY 2015-16 Delhi Transco Limited Delhi Electricity Regulatory Commission Page 2 September 2015 Background .. 72 Operation and Maintenance Expenses .. 72 Capitalisation of Expenses .. 77 Assets Capitalization .. 78 Depreciation .. 79 Working Capital Requirement .. 80 Return on Capital Employed (RoCE).. 80 Income Tax .. 82 Non Tariff Income .. 82 Aggregate Revenue Requirement (ARR) .. 83 A5: Transmission Tariff Design .. 84 A6: Directives.

6 89 91 Annexure-II .. 92 Annexure-III .. 97 Annexure-IV .. 104 Annexure-V .. 116 Annexure-VI .. 123 Annexure-VII .. 124 Tariff Order for FY 2015-16 Delhi Transco Limited Delhi Electricity Regulatory Commission Page 3 September 2015 LIST OF TABLES Table : List of Correspondence with the Petitioner .. 11 Table : Capitalisation approved for FY 2007-08 to FY 2010-11 (Rs. Crore) .. 40 Table : R&M Expenses approved for 1st MYT Control period (Rs. Crore) .. 40 Table : Depreciation approved for 1st MYT Control period (Rs.)

7 Crore) .. 41 Table : RoCE approved for FY 2007-08 to FY 2011-12 (Rs. Crore) .. 41 Table : Net Impact of truing-up up to FY 2011-12 with carrying cost (Rs. Crore) .. 43 Table : Employee Expenses Submitted for FY 2012-13 to FY 2014-15 (Rs. Crore) .. 44 Table : Employee Expenses approved for FY 2012-13 and FY 2013-14 (Rs. Crore) .. 46 Table : A&G expenses submitted for FY 2012-13 to FY 2014-15 (Rs. Crore) .. 48 Table : A&G Expenses approved for FY 2012-13 and FY 2013-14 (Rs. Crore) .. 50 Table : R&M expenses submitted for FY 2012-13 to FY 2014-15 (Rs.

8 Crore) .. 51 Table : R&M Expenses approved for FY 2012-13 and FY 2013-14 (Rs. Crore) .. 52 Table : O&M Expenses approved for FY 2012-13 and FY 2013-14 (Rs. Crore) .. 54 Table : Working Capital submitted for FY 2012-13 to FY 2014-15 (Rs. Crore) .. 54 Table : Working Capital approved for FY 2012-13 and FY 2013-14 (Rs. Crore) .. 55 Table : Assets Capitalization submitted for FY 2012-13 to FY 2014-15 (Rs. Crore) .. 55 Table : Capitalisation approved for FY 2012-13 to FY 2013-14 (Rs. Crore) .. 56 Table : Depreciation submitted for FY 2012-13 to FY 2014-15 (Rs.

9 Crore) .. 56 Table : Depreciation approved by the Commission for FY 2012-13 and FY 2013-14 .. 57 (Rs. Crore) .. 57 Table : RoCE submitted for FY 2012-13 to FY 2014-15 (Rs. Crore) .. 58 Table : RoCE approved for FY 2012-13 and FY 2013-14 (Rs. Crore) .. 61 Table : Income Tax for FY 2012-13 to FY 2014-15 (Rs. Crore) .. 65 Table : Income Tax approved for FY 2012-13 and FY 2013-14 (Rs. Crore) .. 67 Table : Non Tariff Income for FY 2012-13 to FY 2014-15 (Rs. Crore) .. 67 Table : Non Tariff Income approved for FY 2012-13 and FY 2013-14 (Rs.

10 Crore) .. 69 Table : Capitalization of Expenses submitted for FY 2012-13 to FY 2014-15 (Rs. Crore).. 69 Table : Capitalization of expenses approved for FY 2012-13 to FY 2014-15 (Rs. Crore) .. 69 Table : Capitalization of expenses approved for FY 2012-13 and FY 2013-14 (Rs. Crore) .. 69 Table : ARR approved in true up for FY 2012-13 (Rs. Crore) .. 70 Table : ARR approved in true up for FY 2013-14 (Rs. Crore) .. 70 Table : Revenue Gap / (Surplus) for FY 2012-13 (Rs. Crore) .. 70 Table : Net Impact of truing-up upto FY 2012-13 with carrying cost (Rs.