Retail Supply Tariff Order FY 2017-18

1 Retail Supply Tariff Order FY 2017 -18. MADHYA PRADESH ELECTRICITY REGULATORY COMMISSION. 5th Floor, Metro Plaza, Bittan Market, Bhopal - 462 016. AGGREGATE REVENUE REQUIREMENT. AND Retail Supply Tariff Order . FORP etition FY 2017 -18. Nos. Petition No. 71/2016. PRESENT: Dr. Dev Raj Birdi, Chairman A. B. Bajpai, Member Alok Gupta, Member IN THE MATTER OF: Determination of Aggregate Revenue Requirement (ARR) and Retail Supply Tariff for FY. 2017 -18 based on the ARR & Tariff Petition filed by the Distribution Licensees namely Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company Limited (East Discom), Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Limited (West Discom) and Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Limited (Central Discom), and Madhya Pradesh Power Management Company Limited (MPPMCL).

2 Madhya Pradesh Electricity Regulatory Commission Page 1. Retail Supply Tariff Order FY 2017 -18. Table of Contents A1: Order .. 6. A2: AGGREGATE REVENUE REQUIREMENT FOR FY 2017 -18 OF PETITIONERS. (EAST, WEST AND CENTRAL DISCOMS) .. 14. Sales forecast as projected by the Petitioners .. 14. Commission's Analysis .. 15. Energy 17. Commission's Analysis ..17. Assessment of Energy Availability ..18. Assessment of Power Purchase Cost ..29. Petitioners Submissions ..29. Renewable Power Obligation (RPO) ..45. Inter State Transmission Charges associated with existing capacities ..49. Capitalization and CWIP .. 56. Commission's Analysis on Asset 57. Operations and Maintenance Expenses .. 58. Petitioners Submissions ..58. Employee Expenses ..58. A&G Expenses ..59. R&M Expenses ..59. Commission's Analysis on O&M Expenses.

3 60. 62. Petitioners Submissions ..62. Commission's Analysis of Depreciation .. 62. Interest and Finance Charges .. 64. Petitioners Commission's Analysis of Interest and Finance Charges .. 66. Interest on Working Capital .. 69. Petitioners Submissions ..69. Commission's Analysis of Interest on Working Capital .. 70. Interest on Consumer Security Deposit .. 72. Petitioners Submissions ..72. Commission's Analysis of Consumer Security Deposit .. 72. Return on 72. Petitioners Commission's Analysis of Return on Equity .. 73. Bad and doubtful debts .. 74. Petitioners Commission's Analysis on Bad and Doubtful debts .. 75. Other Income .. 75. Petitioners Commission's Analysis on Other Income .. 76. Segregation of admitted ARR between Wheeling and Retail Sale activities .. 77. Madhya Pradesh Electricity Regulatory Commission Page 2.

4 Retail Supply Tariff Order FY 2017 -18. Aggregate Revenue Requirement (ARR) admitted by the Commission for FY 2017 -18 78. Revenue from revised tariffs .. 79. A3: WHEELING CHARGES, CROSS SUBSIDY SURCHARGE AND ADDITIONAL. SURCHARGE .. 81. A4: FUEL COST ADJUSTMENT CHARGE .. 91. A5: PUBLIC SUGGESTIONS AND COMMENTS ON LICENSEES' PETITIONS .. 96. A6: Retail Tariff DESIGN .. 114. Legal Position .. 114. Commission's Approach to Tariff Determination .. 114. Linkage to Average Cost of Supply .. 114. A7: COMPLIANCE ON DIRECTIVES ISSUED IN Tariff Order FOR FY 2016-17. 122. Annexure-1 (List of Stakeholders) .. 141. Annexure-2 ( Tariff Schedules for Low Tension Consumers) .. 150. Annexure-3 ( Tariff Schedules for High Tension Consumers) .. 177. Madhya Pradesh Electricity Regulatory Commission Page 3.

5 Retail Supply Tariff Order FY 2017 -18. List of Tables Table 1 : Snapshot of the petition for FY 2017 -18 (Rs. Crore) .. 7. Table 2: Public 8. Table 3: Distribution loss reduction trajectory as per Regulations .. 8. Table 4: Status of feeder meterisation .. 9. Table 5: Status of meterisation of un-metered rural domestic consumers .. 9. Table 6: Status of meterisation of agricultural DTRs .. 10. Table 7: ARR admitted by the Commission for FY 2017 -18 (Rs. Crore) .. 11. Table 8: Category wise sale projected by Petitioners (MU) .. 15. Table 9: Category wise sale admitted by the Commission (MU) .. 16. Table 10: Energy requirement for FY 2017 -18 as proposed by Petitioners .. 17. Table 11: Loss targets as per Regulations (in %) .. 17. Table 12: Power purchase requirement as worked out by the Commission.

6 18. Table 13: Energy availability Projections .. 19. Table 14: MPPMCL allocated stations .. 19. Table 15: Stations which are considered by the Petitioners for partial back down .. 22. Table 16: Total Availability of Energy submitted by the Petitioners (MU) .. 22. Table 17 : Month wise availability projection for FY 2017 -18 .. 23. Table 18 : MOD on allocated generating stations for FY 2017 -18 .. 26. Table 19: Total Availability of Energy worked out by the Commission (MU).. 28. Table 20 : Fixed cost and Variable charges of MPPMCL allocated stations submitted by the Petitioners for FY 2017 -18 .. 29. Table 21 : Fixed cost and Variable cost as filed for the existing stations for FY 33. Table 22: Basis of Fixed and Variable charges for the generating stations during FY 2017 -18.

7 36. Table 23 : Total fixed costs of all generating stations allocated among Discoms (Rs Crore) .. 41. Table 24: Station wise admitted variable cost of scheduled energy .. 43. Table 25: RPO for FY 2017 -18 .. 45. Table 26: Renewable energy requirement computed by the Commission (MU) .. 47. Table 27: RE power purchase cost admitted by the Commission for FY 2017 -18 .. 47. Table 28: Management of Surplus Energy with Discoms for the MYT period FY 2017 -18 .. 48. Table 29 : Details of saving in power purchase cost through sale of Surplus energy .. 49. Table 30 : Discom-wise details of saving in fixed cost from sale of Surplus energy (Rs. Crore) 49. Table 31: Inter-state transmission charges filed by Discoms for FY 2017 -18 .. 50. Table 32: PGCIL charges admitted for FY 2017 -18 (Rs. Crore).

8 50. Table 33: Intra-State Transmission Charges including SLDC charges filed by Petitioners for FY 2017 -18 .. 51. Table 34 : MPPTCL charges including SLDC charges admitted for FY 2017 -18 (Rs. Crore) .. 51. Table 35: Expenses of MPPMCL as filed for FY 2017 -18 (Rs Crore) .. 52. Table 36: MPPMCL Costs allocated to Discoms (Rs Crore) .. 52. Table 37: Total Power Purchase Cost as filed for FY 2017 -18 .. 53. Table 38 : Total power purchase cost admitted for FY 2017 -18 (Rs Crore) .. 54. Table 39 : Pooled Power Purchase cost for FY 2017 -18 .. 55. Table 40 : Capital Investment plan for FY 2017 -18 (Rs. Crore) .. 56. Table 41 : Discom wise year wise capitalization and bifurcation of CWIP (Rs. Crore) .. 56. Table 42 : Net Asset capitalization during FY 2014-15 and FY 2015-16 (Rs. Crore).

9 57. Madhya Pradesh Electricity Regulatory Commission Page 4. Retail Supply Tariff Order FY 2017 -18. Table 43: Asset capitalization admitted for FY 2016-17 and FY 2017 -18 (Rs. Crore).. 57. Table 44: O&M expenses claimed for FY 2017 -18 (Rs. Crore).. 60. Table 45: Employee Expenses as admitted for FY 2017 -18 (Rs. Crore).. 61. Table 46: A&G Expenses as admitted for FY 2017 -18 (Rs. Crore) .. 61. Table 47: R&M Expenses as admitted for FY 2017 -18 (Rs. Crore) .. 61. Table 48: O&M Expenses as admitted for FY 2017 -18 (Rs. Crore) .. 62. Table 49: Depreciation claimed by Petitioners (Rs. Crore) .. 62. Table 50: Depreciation admitted for FY 2017 -18 (Rs. Crore).. 63. Table 51: Interest cost claimed (Rs. Crore) .. 64. Table 52: Interest cost claimed (Rs. Crore) .. 65. Table 53: Interest cost claimed (Rs.)

10 Crore) .. 66. Table 54: Interest and finance charges admitted for FY 2017 -18 (Rs. Crore) .. 67. Table 55: Interest on Working Capital as filed for 2017 -18 (Rs Crore) .. 69. Table 56: Interest on Working Capital admitted by the Commission (Rs. Crore) .. 71. Table 57: Interest on Consumer Security Deposit as per Regulations for FY 2017 -18 (Rs. Crore).. 72. Table 58: Interest on Consumer Security Deposit (CSD) admitted for FY 2017 -18 (Rs. Crore). 72. Table 59: Return on Equity for 2017 -18 (Rs. Crore) .. 72. Table 60: Return on Equity admitted for FY 2017 -18 (Rs. Crore) .. 73. Table 61: Bad and Doubtful Debts for FY 2017 -18 as per Regulations (Rs Crore) .. 74. Table 62: Other Income (Rs Crore) .. 75. Table 63: Total actual other income as per audited accounts (Rs Crore) .. 76. Table 64: Other Income admitted for FY 2017 -18 (Rs.