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.

2 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 .. 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.

3 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.

4 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) .. 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.

5 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.)

6 Crore) .. 40 Table : R&M Expenses approved for 1st MYT Control period (Rs. 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.

7 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. Crore) .. 55 Table : Capitalisation approved for FY 2012-13 to FY 2013-14 (Rs.

8 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.

9 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. Crore).

10 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.)