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 .. 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.

2 25 Issue 8: Dividend distribution tax .. 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 .. 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.

3 69 Aggregate Revenue Requirement (ARR) .. 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 .. 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.)

4 Crore) .. 40 Table : Depreciation approved for 1st MYT Control period (Rs. 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. 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.

5 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. 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. 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).

6 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. Crore) .. 71 Table : Revenue Gap / (Surplus) for FY 2013-14 (Rs. Crore) .. 71 Table : Employee Expenses submitted for FY 2015-16 (Rs. Crore) .. 72 Table : Employee Expenses approved for FY 2015-16 (Rs. Crore) .. 74 Table : A&G expenses submitted for FY 2015-16 (Rs. Crore) .. 74 Table : A&G Expenses approved for FY 2015-16 (Rs. Crore) .. 75 Table : R&M expenses submitted for FY 2015-16 (Rs. Crore) .. 76 Table : R&M Expenses approved for FY 2015-16 (Rs. Crore) .. 76 Table : O&M Expenses approved for FY 2015-16 (Rs. Crore) .. 77 Table : Capitalization of Expenses submitted for FY 2015-16 (Rs. Crore) .. 78 Table : Capitalization of expenses approved for FY 2015-16 (Rs. Crore) .. 78 Table : Assets Capitalization submitted for FY 2015-16 (Rs.)

7 Crore) .. 78 Table : Depreciation submitted for FY 2015-16 (Rs. Crore) .. 79 Table : Depreciation approved for FY 2015-16 (Rs. Crore) .. 79 Table : Working Capital submitted for FY 2015-16 (Rs. Crore) .. 80 Table : Working Capital approved for FY 2015-16 (Rs. Crore).. 80 Table : ROCE submitted for FY 2015-16 (Rs. Crore).. 81 Tariff Order for FY 2015-16 Delhi Transco Limited Delhi Electricity Regulatory Commission Page 4 September 2015 Table : RoCE approved for FY 2015-16 (Rs. Crore) .. 81 Table : Income Tax submitted for FY 2015-16 (Rs. Crore) .. 82 Table : Income Tax approved for FY 2015-16 (Rs. Crore) .. 82 Table : Non Tariff Income submitted for FY 2015-16 (Rs. Crore) .. 82 Table : Non Tariff Income approved for FY 2015-16 (Rs. Crore) .. 82 Table : ARR approved for FY 2015-16 (Rs. Crore).. 83 Table Approved ARR and balance past DVB arrears .. 87 Table : Transmission charges including carrying cost and liquidation of past arrears .. 87 (Rs. Crore).

8 87 Tariff Order for FY 2015-16 Delhi Transco Limited Delhi Electricity Regulatory Commission Page 5 September 2015 List of Abbreviations Abbreviation Explanation ARR Aggregate Revenue Requirement A&G Administrative and General AAD Advance Against Depreciation ABT Availability Based Tariff ACD Advance Consumption Deposit AMR Automated Meter Reading APDRP Accelerated Power Development and Reforms Program AT&C Aggregate Technical and Commercial ATE Appellate Tribunal for Electricity BEST Birhanmumbai Electric Supply and Transport BHEL Bharat Heavy Electricals Limited BIS Bureau of Indian Standards BPTA Bulk Power Transmission Agreement BRPL BSES Rajdhani Power Limited BST Bulk Supply Tariff BTPS Badarpur Thermal Power Station BYPL BSES Yamuna Power Limited CAGR Compounded Annual Growth Rate CCGT Combined Cycle Gas Turbine CEA Central Electricity Authority CERC Central Electricity Regulatory Commission CFL Compact Fluorescent Lamp CGHS Cooperative Group Housing Societies CGS Central Generating Stations CIC Central Information Commission CISF Central Industrial Security Force CoS Cost of Supply CPI Consumer Price Index CPRI Central Power Research Institute CPSUs Central Power Sector Utilities CSGS Central Sector Generating Stations CWIP Capital Work in Progress DA Dearness Allowance DDA Delhi Development Authority DERA Delhi Electricity Reform Act DERC Delhi Electricity Regulatory Commission DIAL Delhi International Airport Limited DISCOMs Distribution Companies (BRPL, BYPL, TPDDL & NDMC)

9 DMRC Delhi Metro Rail Corporation DPCL Delhi Power Company Limited DTL Delhi Transco Limited Tariff Order for FY 2015-16 Delhi Transco Limited Delhi Electricity Regulatory Commission Page 6 September 2015 Abbreviation Explanation DVB Delhi Vidyut Board DVC Damodar Valley Corporation EHV Extra High Voltage EPS Electric Power Survey FBT Fringe Benefit Tax FPA Fuel Price Adjustment GFA Gross Fixed Assets GIS Geographical Information System GoNCTD Government of National Capital Territory of Delhi GTPS Gas Turbine Power Station HEP Hydro Electric Power HPSEB Himachal Pradesh State Electricity Board HRA House Rent Allowance HT High Tension HVDS High Voltage Distribution System IDC Interest During Construction IGI Airport Indira Gandhi International Airport IPGCL Indraprastha Power Generation Company Limited JJ Cluster Jhugghi Jhopadi Cluster KSEB Kerala State Electricity Board LED Light Emitting Diode LIP Large Industrial Power LT Low Tension LVDS Low Voltage Distribution System MCD Municipal Corporation of Delhi MES Military Engineering Service MLHT Mixed Load High Tension MMC Monthly Minimum Charge MoP Ministry of Power MTNL Mahanagar Telephone Nigam Limited MU Million Units MYT Multi Year Tariff NABL National Accreditation Board for Testing and Calibration of Laboratories NAPS Narora Atomic Power Station NCT National Capital Territory NCTPS National Capital Thermal Power Station NDLT Non Domestic Low Tension NDMC New Delhi Municipal Council NEP National Electricity Policy NGO Non Government Organisation NHPCL National Hydroelectric Power Corporation Limited NPCIL Nuclear Power Corporation of India Limited Tariff Order for FY 2015-16 Delhi Transco Limited Delhi Electricity Regulatory Commission Page 7 September 2015 Abbreviation Explanation NRPC Northern Regional Power Committee NTI Non Tariff Income NTP National Tariff Policy O&M Operations and Maintenance OCFA Original Cost of Fixed

10 Assets PGCIL Power Grid Corporation of India Limited PLF Plant Load Factor PLR Prime Lending Rate PPA Power Purchase Agreement PPAC Power Purchase Cost Adjustment Charges PPCL Pragati Power Corporation Limited PPS Pragati Power Station PTC Power Trading Corporation PWD Public Works Department R&M Repair and Maintenance RAPS Rajasthan Atomic Power Station REA Regional Energy Account RoCE Return on Capital Employed ROE Return on Equity RRB Regulated Rate Base RTI Right to Information RWA Resident Welfare Association SBI State Bank of India SERC State Electricity Regulatory Commission SIP Small Industrial Power SJVNL Satluj Jal Vidyut Nigam Limited SLDC State Load Despatch Centre SPD Single Point Delivery SPUs State Power Utilities SVRS Special Voluntary Retirement Scheme THDCL Tehri Hydro Development Corporation Limited ToD Time of Day TOWMCL Timarpur Okhla Waste Management Company (P) Limited TPDDL Tata Power Delhi Distribution Limited TPS Thermal Power Station UI Unscheduled Interchange UoM Units of Measurement WACC Weighted Average Cost of Capital WC Working Capital WPI Wholesale Price Index Tariff Order for FY 2015-16 Delhi Transco Limited Delhi Electricity Regulatory Commission Page 8 September 2015 A1.