BSES RAJDHANI POWER LIMITED - TARIFF ORDER...BSES RAJDHANI POWER LIMITED (BRPL) ..... 21 DELHI...
Transcript of BSES RAJDHANI POWER LIMITED - TARIFF ORDER...BSES RAJDHANI POWER LIMITED (BRPL) ..... 21 DELHI...
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 2
CONTENTS
A1: INTRODUCTION ......................................................................................................... 21
BSES RAJDHANI POWER LIMITED (BRPL) ...................................................................................... 21
DELHI ELECTRICITY REGULATORY COMMISSION .......................................................................... 21
THE COORDINATION FORUM MEETING ....................................................................................... 21
MULTI YEAR TARIFF REGULATIONS .............................................................................................. 22
FILING OF PETITION FOR TRUE-UP OF FY 2018-19 AND ARR FOR FY 2020-21 ............................. 23
FILING AND ACCEPTANCE OF PETITION ........................................................................................ 23
INTERACTION WITH THE PETITIONER AND PUBLIC HEARING ...................................................... 23
PUBLIC NOTICE .............................................................................................................................. 25
LAYOUT OF THE ORDER ................................................................................................................ 27
PERFORMANCE REVIEW ............................................................................................................... 28
APPROACH OF THE ORDER ........................................................................................................... 29
APPROACH FOR TRUE UP OF FY 2018-19 ..................................................................................... 29
APPROACH FOR ARR AND TARIFF FOR FY 2020-21 ...................................................................... 30
A2: RESPONSE FROM THE STAKEHOLDERS ....................................................................... 31
ISSUE 1: PUBLIC HEARING AND OBJECTION FILING PROCESS ................................................. 31
ISSUE 2: BUSINESS PLAN& SOP REGULATION .......................................................................... 34
ISSUE 3: RENEWABLE PURCHASE OBLIGATION ....................................................................... 38
ISSUE 4: POWER PURCHASE COST ........................................................................................... 47
ISSUE 5: AT&C LOSSES .............................................................................................................. 53
ISSUE 6: DISTRIBUTION INFRASTRUCTURE .............................................................................. 57
ISSUE 7: O&M EXPENSES .......................................................................................................... 59
ISSUE 8: TRUE-UP OF PAST CLAIM UP TO 2017-18 .................................................................. 61
ISSUE 9: REGULATORY ASSETS ................................................................................................. 64
ISSUE 10: PENSION TRUST .......................................................................................................... 69
ISSUE 11: OPEN ACCESS ............................................................................................................. 76
ISSUE 12: TARIFF HIKE ................................................................................................................ 78
ISSUE 13: CAG AUDIT ................................................................................................................. 88
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 3
ISSUE 14: TARIFF CATEGORY ...................................................................................................... 89
ISSUE 15: COST OF FINANCE ...................................................................................................... 95
ISSUE 16: FIXED CHARGE ............................................................................................................ 96
ISSUE 17: TRANSMISSION LOSS AND CHARGES ......................................................................... 99
ISSUE 18: GROUP HOUSING SOCIETY TARIFF CHARGES .......................................................... 103
ISSUE 19: MISCELLANEOUS ...................................................................................................... 111
A3: TRUE UP FOR FY 2018-19 ......................................................................................... 125
BACKGROUND ............................................................................................................................. 125
DIRECTIONS OF HON’BLE APTEL IN VARIOUS JUDGMENTS ....................................................... 128
Error in consideration of Rebate from DTL as NTI during FY 2013-14 ....................................... 130
Omission to deduct Rs. 27.82 Cr. LPSC (FY 2008-09) from Revenue .......................................... 131
Error in consideration of impact on account of Merit Order Dispatch for FY 2013-14 .............. 132
Omission to withdraw / recall the Efficiency Factor for FY 2015-16 .......................................... 137
TRUE UP OF FY 2018-19 .............................................................................................................. 142
ENERGY SALES ............................................................................................................................. 142
OWN CONSUMPTION ................................................................................................................. 145
ENFORCEMENT ........................................................................................................................... 146
NET METERING ............................................................................................................................ 148
ADJUSTMENT IN BILLING BY MORE THAN 1% ............................................................................ 149
DISTRIBUTION LOSS AND COLLECTION EFFICIENCY FOR FY 2018-19 ......................................... 153
ENERGY INPUT ............................................................................................................................ 155
DISTRIBUTION LOSS .................................................................................................................... 156
REVENUE BILLED ......................................................................................................................... 159
REVENUE COLLECTED .................................................................................................................. 159
COLLECTION EFFICIENCY ............................................................................................................. 160
POWER PURCHASE QUANTUM (MU) ......................................................................................... 162
LONG TERM POWER PURCHASE QUANTUM .............................................................................. 163
SHORT TERM POWER PURCHASE QUANTUM ............................................................................ 164
SHORT TERM POWER SALES QUANTUM .................................................................................... 165
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 4
POWER PURCHASE COST ............................................................................................................ 167
LONG TERM SOURCES ................................................................................................................. 168
SHORT TERM POWER PURCHASE ............................................................................................... 172
CONTINGENCY LIMIT OF 5% ON UI SALE .................................................................................... 173
ADDITIONAL UI CHARGES ........................................................................................................... 175
MERIT ORDER DISPATCH, SALE OF SURPLUS POWER AND INCENTIVE THEREON ..................... 176
TRANSMISSION CHARGES ........................................................................................................... 183
REBATE ON POWER PURCHASE AND TRANSMISSION CHARGES ............................................... 184
RENEWABLE PURCHASE OBLIGATION ........................................................................................ 191
TOTAL POWER PURCHASE COST ................................................................................................. 195
OPERATION AND MAINTENANCE (O&M) EXPENSES .................................................................. 195
ADDITIONAL O&M EXPENSES ..................................................................................................... 197
LOSS ON SALE OF RETIRED ASSETS ............................................................................................. 198
IMPACT ON ACCOUNT OF 7TH PAY COMMISSION REVISION AND MINIMUM WAGE REVISION 199
WATER CHARGES ........................................................................................................................ 201
PROPERTY TAX ............................................................................................................................ 202
IMPACT ON ACCOUNT OF GOODS & SERVICE TAX (GST) ........................................................... 203
SMS CHARGES ............................................................................................................................. 204
LEGAL FEES AND EXPENSES ........................................................................................................ 205
DSM CHARGES ............................................................................................................................ 205
KYC EXPENSE ............................................................................................................................... 206
INCREMENTAL LICENSE FEES PAID ON ASSETS ........................................................................... 207
FEES FOR GEO-SPATIAL ACCESS .................................................................................................. 208
CAPITAL EXPENDITURE AND CAPITALISATION ........................................................................... 209
MEANS OF FINANCE .................................................................................................................... 211
UTILIZATION OF EQUITY.............................................................................................................. 212
CONSUMER CONTRIBUTION & GRANT ....................................................................................... 220
FUNDING OF CAPITALISATION .................................................................................................... 221
DEPRECIATION ............................................................................................................................ 221
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 5
WORKING CAPITAL ...................................................................................................................... 224
REGULATED RATE BASE (RRB) ..................................................................................................... 225
DEBT AND EQUITY, INTEREST ON LOAN, WACC ......................................................................... 228
INCOME TAX................................................................................................................................ 231
NON-TARIFF INCOME .................................................................................................................. 232
INTEREST ON CONSUMER SECURITY DEPOSIT ........................................................................... 234
DIFFERENCE ON ACCOUNT OF SERVICE LINE DEVELOPMENT (SLD) CHARGES .......................... 235
INCOME FROM OTHER BUSINESS (STREET LIGHT MAINTENANCE BUSINESS) ........................... 236
LATE PAYMENT SURCHARGE ...................................................................................................... 241
WRITE-BACK OF MISCELLANEOUS PROVISIONS ......................................................................... 244
SHORT TERM GAIN ...................................................................................................................... 246
TRANSFER FROM CONSUMER CONTRIBUTION AND CAPITAL WORKS ...................................... 246
INCOME ON ACCOUNT OF BAD DEBTS RECOVERED .................................................................. 247
COLLECTION CHARGES ON ELECTRICITY DUTY ........................................................................... 248
INTEREST ON INTER-COMPANY LOANS ...................................................................................... 251
ADVANCE FROM CONSUMERS ................................................................................................... 253
INCOME FROM OPEN ACCESS SALES .......................................................................................... 256
AGGREGATE REVENUE REQUIREMENT APPROVED IN TRUING-UP OF FY 2018-19 ................... 256
REVENUE AVAILABLE TOWARDS ARR ......................................................................................... 257
REVENUE (GAP)/ SURPLUS .......................................................................................................... 258
A4: ANALYSIS OF AGGREGATE REVENUE REQUIREMENT (ARR) FOR FY 2020-21 .............. 260
INTRODUCTION ........................................................................................................................... 260
CONSUMPTION PATTERN ........................................................................................................... 262
CASHFLOW AND AVERAGE BILLING RATE................................................................................... 262
STANDARDS OF PERFORMANCE ................................................................................................. 263
ENERGY SALES ............................................................................................................................. 264
DOMESTIC INCLUDING CGHS ...................................................................................................... 265
NON DOMESTIC (3KVA) ............................................................................................................ 266
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 6
INDUSTRIAL ................................................................................................................................. 266
AGRICULTURE, PUBLIC LIGHTING & DJB ..................................................................................... 267
DELHI METRO RAIL CORPORATION (DMRC) ............................................................................... 267
DELHI INTERNATIONAL AIRPORT LIMITED (DIAL) ....................................................................... 267
TEMPORARY SUPPLY, ADVERTISEMENT & HOARDINGS AND E-RICKSHAW: ............................. 267
PRE-COVID PROJECTIONS: .......................................................................................................... 268
ESTIMATED SALES FOR FY 2020-21 – IMPACT OF COVID-19 PANDEMIC ................................... 274
ESTIMATED REVENUE FOR FY 2020-21 AT EXISTING TARIFF ...................................................... 279
REVENUE PROJECTION FOR FY 2020-21 AT EXISTING TARIFF .................................................... 280
REVENUE FROM FIXED CHARGES................................................................................................ 280
REVENUE FROM ENERGY CHARGES ............................................................................................ 280
POWER FACTOR .......................................................................................................................... 280
REVENUE ESTIMATED FOR FY 2020-21 ....................................................................................... 281
DISTRIBUTION LOSS AND COLLECTION EFFICIENCY TARGET ...................................................... 282
COLLECTION EFFICIENCY ............................................................................................................. 283
ENERGY REQUIREMENT .............................................................................................................. 284
POWER PURCHASE QUANTUM AND COST ................................................................................. 285
RE-ALLOCATION OF POWER STATIONS ...................................................................................... 288
COST OF POWER FROM OTHER SOURCES (SHORT TERM POWER PURCHASE).......................... 297
RENEWABLE PURCHASE OBLIGATION (RPO) .............................................................................. 299
SPECIAL REBATE ANNOUNCED BY MINISTRY OF POWER ........................................................... 304
TRANSMISSION LOSS AND CHARGES .......................................................................................... 305
ENERGY BALANCE ....................................................................................................................... 306
REBATE ON POWER PURCHASE AND TRANSMISSION CHARGES ............................................... 307
TOTAL POWER PURCHASE COST ................................................................................................. 309
POWER PURCHASE COST ADJUSTMENT CHARGES (PPAC) ......................................................... 311
OPERATION AND MAINTENANCE (O&M) EXPENSES .................................................................. 316
ADDITIONAL EXPENSES ............................................................................................................... 319
CAPITAL EXPENDITURE AND CAPITALISATION ........................................................................... 320
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 7
CONSUMER CONTRIBUTION ....................................................................................................... 323
GRANTS……….……………………………………..………………………………………………………………………..……….323
DEPRECIATION ............................................................................................................................ 324
Means of finance for new investments ...................................................................................... 325
WORKING CAPITAL ...................................................................................................................... 326
MEANS OF FINANCE FOR REGULATED RATE BASE, RoCE, WACC ............................................... 327
Return on Capital Employed (RoCE) ........................................................................................... 329
NON-TARIFF INCOME .................................................................................................................. 334
CARRYING COST ON REVENUE GAP ............................................................................................ 335
AGGREGATE REVENUE REQUIREMENT ....................................................................................... 335
ALLOCATION FOR WHEELING AND RETAIL BUSINESS ................................................................ 336
IMPACT OF THE COMMISSION’S ORDER ON REDUCTION OF FIXED CHARGES AGAINST
UNUTILISED CAPACITY FOR INDUSTRIAL AND NON-DOMESTIC CONSUMERS FORTHE MONTHS OF
APRIL 2020AND MAY 2020 ......................................................................................................... 337
IMPACT OF POWER PURCHASE ADJUSTMENT CHARGES (PPAC) ............................................... 338
REVENUE (GAP)/ SURPLUS .......................................................................................................... 343
A5: TARIFF DESIGN ........................................................................................................ 344
COMPONENTS OF TARIFF DESIGN .............................................................................................. 344
CONSOLIDATED REVENUE (GAP)/SURPLUS ................................................................................ 344
REVENUE (GAP)/SURPLUS TILL FY 2018-19 ................................................................................ 344
REVENUE (GAP)/SURPLUS FOR FY 2020-21 AT REVISED TARIFF ................................................ 346
COST OF SERVICE MODEL ........................................................................................................... 348
ALLOCATION OF RETAIL SUPPLY ARR .......................................................................................... 350
CROSS-SUBSIDISATION IN TARIFF STRUCTURE ........................................................................... 352
TARIFF STRUCTURE ..................................................................................................................... 356
DOMESTIC TARIFF ....................................................................................................................... 356
NON-DOMESTIC TARIFF .............................................................................................................. 356
INDUSTRIAL TARIFF ..................................................................................................................... 357
AGRICULTURE ............................................................................................................................. 357
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 8
PUBLIC UTILITIES ......................................................................................................................... 357
DELHI INTERNATIONAL AIRPORT LIMITED (DIAL) ....................................................................... 358
ADVERTISEMENT AND HOARDINGS ........................................................................................... 358
TEMPORARY SUPPLY ................................................................................................................... 358
CHARGING OF E-RICKSHAW/ E-VEHICLE ..................................................................................... 358
VOLTAGE DISCOUNT ................................................................................................................... 359
TIME OF DAY (TOD) TARIFF ......................................................................................................... 360
TARIFF SCHEDULE FOR FY 2020-21 ............................................................................................. 363
A6: DIRECTIVES ............................................................................................................. 372
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 9
Table 1.1: Issues Discussed in 29th Co-ordination Forum Meeting .............................................. 22
Table 1.2: Standards of Performance for FY 2018-19 ................................................................... 28
Table 2. 1: Details of upcoming Firm Renewable sources ........................................................... 44
Table 2. 2: Distribution Loss Target .............................................................................................. 56
Table 2. 3: Projected revised ARR & Revenue (Gap)/Surplus for FY 2020-21 .............................. 82
Table 2. 4: Transmission Charges (Rs. Cr.) .................................................................................. 101
Table 2. 5: Comparison for a 4 kW consumer consuming 800 units in a month ....................... 107
Table 3. 1: Past Period Claim submitted by the Petitioner (Rs. Cr.) ........................................... 128
Table 3. 2: Issues claimed under category 4 by the Petitioner (Rs. Cr.) ..................................... 129
Table 3.3: Merit Order Despatch violations for FY 2013-14 post implementation of DISCOM-wise
scheduling ................................................................................................................................... 136
Table 3. 4: Impact of Review Order dated 13/12/2019, Revised Collection Eff for FY 2017-18 and
other prior period issues (Rs. Cr.) ............................................................................................... 141
Table 3. 5: Petitioner Submission: Category-wise Energy Sales (MU) ....................................... 142
Table 3. 6: Petitioner Submission: Self consumption normative v/s actual for FY 2018-19 ..... 144
Table 3. 7:Month-wise details of Self Consumption ................................................................... 145
Table 3. 8: Month Wise Enforcement Collection ........................................................................ 146
Table 3. 9: Enforcement Collection during FY 2018-19 (Rs. Cr.) ................................................. 147
Table 3. 10: Adjustment Sales in Units for FY 2018-19 (MU) ..................................................... 152
Table 3. 11: Deemed sales and Deemed revenue billed on account of adjustments ................ 152
Table 3. 12: Commission Approved: Trued Up sales FY 2018-19 (MU) ...................................... 153
Table 3. 13: Petitioner Submission: Distribution Loss, Collection efficiency for FY 2018-19 (%) 153
Table 3. 14: Petitioner Submission: Revenue Billed for FY 2018-19 (Rs. Cr.) ............................. 154
Table 3. 15: Petitioner Submission: Revenue Collected for FY 2018-19 (Rs. Cr.) ....................... 154
Table 3. 16: Petitioner Submission: Distribution Loss, Collection Efficiency for FY 2018-19 ..... 154
Table 3. 17: Petitioner Submission: Overachievement in Distribution loss target for FY 2018-19 .......... 155
Table 3. 18: Petitioner Submission: Overachievement in Collection efficiency for FY 2018-19 155
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 10
Table 3. 19: Commission Approved: Energy Input for FY 2018-19 (MU).................................... 156
Table 3. 20: Distribution Loss targets for FY 2018-19 ................................................................. 156
Table 3. 21: Commission Approved: Actual Distribution Loss for FY 2018-19 ........................... 157
Table 3. 22: Commission Approved: Incentive/Dis-incentive for Distribution Loss ................... 158
Table 3. 23: Commission Approved: Revenue Billed for FY 2018-19 (Rs. Cr.) ............................ 159
Table 3. 24: Commission Approved: Revenue Collected for FY 2018-19 (Rs. Cr.) ...................... 160
Table 3. 25: Commission Approved: Collection Efficiency for FY 2018-19 (Rs. Cr.) ................... 161
Table 3. 26: Petitioner Submission: Power Purchase Quantum for FY 2018-19 (MU) ............... 162
Table 3. 27: Petitioner Submission: Power Purchase Quantum Station wise FY 2018-19 (MU) 163
Table 3. 28:Petitioner Submission: Short Term Power Purchase ............................................... 165
Table 3. 29: Petitioner Submission: Short Term Power Sales .................................................... 165
Table 3. 30: Commission Approved: Power Purchase Quantum (MU) ...................................... 166
Table 3. 31: Petitioner Submission: Power Purchase Cost for FY 2018-19 (Rs. Cr.) ................... 167
Table 3. 32: Petitioner Submission: Power Purchase Cost Station wise for FY 2018-19 ............ 168
Table 3. 33: Commission Approved: Long Term Power Purchase Cost for FY 2018-19 ............. 172
Table 3. 34: Petitioner Submission: Short Term Power Purchase Cost ...................................... 172
Table 3. 35: Details of Contingency limit @ 5% (MU) ................................................................. 174
Table 3. 36: :Petitioner Submission: UI v/s Force Scheduling by Delhi SLDC (Rs. Cr.) ................ 175
Table 3. 37::Commission Approved: Short term Power Purchase for FY 2018-19 ..................... 176
Table 3. 38: Petitioner Submission: Revenue from Short term power sales .............................. 178
Table 3. 39: Petitioner Submission: Incentive on sale of surplus power (Rs. Cr.) ...................... 179
Table 3. 40: Commission Approved: Incentive/(dis-incentive) on sale of surplus power (Rs. Cr.) ........... 183
Table 3. 41: Commission Approved: Transmission Charges (Rs. Cr.) ......................................... 183
Table 3. 42: :Petitioner Submission: Rebate-able & Non Rebate-able amount FY 2018-19 (Rs. Cr.) ....... 184
Table 3. 43: Commission Approved: Rebate on PPC and Transmission Charges for FY 2018-19 (Rs. Cr.) 189
Table 3. 44: Petitioner Submission: Details of RPO (FY 2018-19) ............................................... 191
Table 3. 45: Details of upcoming Firm Renewable sources ........................................................ 192
Table 3. 46: Commission Approved: Penalty on account of non-fulfilment of RPO targets for FY
2018-19 ....................................................................................................................................... 194
Table 3. 47: Commission Approved: Power purchase cost for FY 2018-19 ................................ 195
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 11
Table 3. 48: Petitioner Submission: O&M Norms as per DERC (BPR) Regulations, 2017 ........... 196
Table 3. 49: Petitioner Submission: O&M Expenses (Rs. Cr.) ..................................................... 196
Table 3. 50: Petitioner Submission: Additional O&M expenses (Rs. Cr.) ................................... 197
Table 3. 51: Petitioner Submission: Impact of GST (Rs. Cr) ........................................................ 203
Table 3. 52: Petitioner Submission: License fees paid to GoNCTD (Rs. Cr.) ............................... 207
Table 3. 53: Commission Approved: Additional O&M Expenses for FY 2018-19 (Rs. Cr.) .......... 208
Table 3. 54: Petitioner Submission: Gross Fixed Assets for FY 2018-19 (Rs. Cr.) ..................... 209
Table 3. 55: Projected Capitalization for FY 2018-19 (Rs. Cr.) .................................................... 209
Table 3. 56: Provisionally Approved Capitalization for FY 2018-19 (Rs. Cr.) .............................. 211
Table 3. 57:Provisionally Approved Capitalization upto FY 2018-19 (Rs. Cr.) ............................ 211
Table 3. 58: Petitioner Submission: Investment capitalised for FY 2018-19 (Rs. Cr.) ................ 212
Table 3. 59: Utilization of Equity for FY 2018-19 ........................................................................ 220
Table 3. 60: Commission Approved: Consumer Contribution/Grants (Rs. Cr.) .......................... 220
Table 3. 61: Commission Approved: Capitalisation funding for FY 2018-19 (Rs. Cr.) ................. 221
Table 3. 62: Petitioner Submission: Average rate of Depreciation for FY 2018-19(Rs. Cr.) ...... 221
Table 3. 63: Petitioner Submission: Depreciation for FY 2018-19(Rs. Cr.) ................................. 222
Table 3. 64:Petitioner Submission: Cumulative Depreciation upto FY 2018-19(Rs. Cr.) ............ 222
Table 3. 65: Commission Approved: Depreciation for FY 2018-19 (Rs.Cr.) ............................... 223
Table 3. 66: Commission Approved: Accumulated Depreciation (Rs. Cr.) ................................. 223
Table 3. 67: Petitioner Submission: Working Capital Requirement (Rs. Cr.) .............................. 224
Table 3. 68: Commission Approved: Working Capital for FY 2018-19 (Rs. Cr.) .......................... 225
Table 3. 69: Petitioner Submission: Regulated Rate Base for FY 2018-19(Rs. Cr.) ..................... 225
Table 3. 70: Commission Approved: RRB for FY 2018-19 (Rs. Cr.).............................................. 228
Table 3. 71: Petitioner Submission: Average Debt & Equity for FY 2018-19(Rs. Cr.) ................. 229
Table 3. 72: Petitioner Submission: Rate of Interest .................................................................. 229
Table 3. 73: Petitioner Submission: Weighted Average Cost of Capital (Rs. Cr.) ....................... 229
Table 3. 74: Petitioner Submission: RoCE for FY 2018-19 (Rs. Cr.) ............................................. 229
Table 3. 75: Commission Approved: WACC and ROCE for FY 2018-19 (Rs. Cr.) ......................... 230
Table 3. 76: Refund of Income Tax ............................................................................................. 231
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 12
Table 3. 77: Commission Approved: Income tax for FY 2018-19 (Rs. Cr.) .................................. 232
Table 3. 78: Petitioner Submission: Non-Tariff Income for FY 2018-19 (Rs. Cr.)........................ 232
Table 3. 79: Petitioner Submission: Interest on Consumer Security Deposit (Rs. Cr.) ............... 234
Table 3. 80: Commission Approved: Consumer Security Deposit for FY 2018-19 (Rs. Cr.) ........ 234
Table 3. 81: Petitioner Submission: Difference on account of SLD(Rs. Cr.) ................................ 235
Table 3. 82: Commission Approved: Difference on account of SLD (Rs. Cr.) .............................. 236
Table 3. 83: Other Business Income for FY 2018-19 (Rs. Crore) ................................................. 239
Table 3. 84: Petitioner Submission: Comparison of LPSC between Delhi Gencos & Transco and
Delhi DISCOMs ............................................................................................................................ 243
Table 3. 85: Commission Approved: Financing Cost of LPSC (Rs. Cr.) ........................................ 244
Table 3. 86: Availability of average Equity during FY 2018-19 (Rs. Cr.) ...................................... 252
Table 3. 87: Commission Approved: Income on account of Inter-DISCOM funding during FY 2018-
19(Rs. Cr.) .................................................................................................................................... 253
Table 3. 88:Commission Approved: Interest rate for the computation of financing cost ......... 255
Table 3. 89: Commission Approved: Non Tariff Income for FY 2018-19 (Rs. Cr.) ....................... 256
Table 3. 90: Petitioner Submission: Aggregate Revenue Requirement during FY 2018-19 (Rs. Cr.) ........ 257
Table 3. 91: Commission Approved: Aggregate Revenue Requirement for FY 2018-19 (Rs. Cr.) ............. 257
Table 3. 92: Petitioner Submission: Revenue available towards ARR (Rs. Cr.) ........................... 257
Table 3. 93: Commission Approved: Revenue Available towards ARR for FY 2018-19 (Rs.Cr.) . 258
Table 3. 94: Petitioner Submission: Revenue (Gap) for FY 2018-19 (Rs. Cr.) ............................. 258
Table 3. 95: Commission Approved: Revenue (Gap)/ Surplus during FY 2018-19 (Rs. Cr.) ........ 259
Table 4. 1: Petitioner Submission: Revised Energy Sales (MU) .................................................. 268
Table 4. 2: Commission’s Projection & 19thEPS vis-à-vis Actual Sales for FY 2017-18 (MU) ...... 270
Table 4. 3: Commission’s Projection & 19thEPS vis-à-vis Actual Sales for FY 2018-19 (MU) ...... 270
Table 4. 4: Actual H1 Sales from FY 2014-15 to FY 2019-20 (MU).............................................. 272
Table 4. 5: Actual H2 Sales from FY 2014-15 to FY 2019-20 (MU).............................................. 272
Table 4. 6: Various H1 Sales CAGR (FY 2014-15 to FY 2019-20) (%) ........................................... 273
Table 4. 7: Various H2 Sales CAGR (FY 2014-15 to FY 2019-20) (%) ........................................... 273
Table 4. 8: Commission Approved: Pre-COVID Sales projection for FY 2020-21 ........................ 274
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 13
Table 4. 9: Sales Information received by the Commission ....................................................... 276
Table 4. 10: Sales considered by the Commission after treatment ........................................... 276
Table 4. 11: Commission Approved: Sales for Apr’20 to July’20FY 2020-21 .............................. 277
Table 4. 12: Commission Approved: Sales for Aug’20 and Sep’20FY 2020-21 ........................... 277
Table 4. 13: Commission Approved Sales for Oct’20 to Mar’21 and sales for FY 2020-21 ........ 278
Table 4. 14: Petitioner Submission: Power Factor considered ................................................... 280
Table 4. 15:Petitioner Submission: Revenue Billed at Existing Tariff ......................................... 281
Table 4. 16:Commission Approved: Revenue estimated at Existing Tariff for FY 2020-21 (Rs. Cr.) ........ 282
Table 4. 17:Petitioner Submission: Energy Requirement for FY 2020-21 .................................. 285
Table 4. 18:Commission Approved: Energy Requirement for FY 2020-21 ................................. 285
Table 4. 19:Petitioner Submission: Energy Available for FY 2020-21 ......................................... 286
Table 4. 20:Petitioner Submission: Power Purchase Cost from Long Term Sources proposed for
FY 2020-21 .................................................................................................................................. 288
Table 4. 21: Re-allocation of Power among Delhi Distribution Licensees over & above on going
allocation ..................................................................................................................................... 291
Table 4.22:Commission Approved: Energy available to Petitioner from Central &State Generating
Stations and other Generating Stations for FY 2020-21 ............................................................. 292
Table 4. 23: Details of the Orders and the Fixed Cost (Rs. Cr.) ................................................... 294
Table 4. 24:Commission Approved: Power Purchase Cost for FY 2020-21 ................................ 295
Table 4. 25:Petitioner Submission: Monthly Deficit considered to be met through Short Term
Purchases .................................................................................................................................... 298
Table 4. 26:Petitioner Submission: Short term power purchase for FY 2020-21 ....................... 298
Table 4. 27: Average Short Term RTC rates of electricity prevailing in N2 region (Rs./kWh) .... 299
Table 4. 28:Petitioner Submission: Solar and Non-Solar Targets ............................................... 300
Table 4. 29:Commission Approved: Targets for Renewable Purchase Obligation ..................... 302
Table 4. 30:Commission Approved: Renewable Energy to be procured .................................... 302
Table 4. 31:Fixed Floor Price and Forbearance Price for Solar and Non-solar RECs proposed by
CERC ............................................................................................................................................ 303
Table 4.32:Commission Approved: Power Purchase Cost towards RPO compliance ................ 304
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 14
Table 4. 33: Rebate by CPSEs ...................................................................................................... 304
Table 4. 34: Details of rebate offered to Delhi DISCOMs ........................................................... 305
Table 4. 35:Petitioner Submission: Transmission Charges ........................................................ 305
Table 4. 36:Commission Approved: Inter-State and Intra-State Transmission Losses and
Transmission Charges for FY 2020-21 ......................................................................................... 306
Table 4. 37: Petitioner Submission: Energy Balance for FY 2020-21 .......................................... 306
Table 4. 38:Commission Approved: Energy Balance for FY 2020-21 ......................................... 307
Table 4. 39:Commission Approved: Rebate for FY 2020-21 ....................................................... 309
Table 4. 40:Petitioner Submission: Total Power Purchase Cost ................................................. 310
Table 4. 41:Commission Approved: Total Power Purchase Cost during FY 2020-21 ................ 311
Table 4. 42:Petitioner Submission: Network Capacity at end of FY 2020-21 ............................. 316
Table 4. 43:Petitioner Submission: Average Network Capacity ................................................. 316
Table 4. 44:Petitioner Submission: O&M Expenses estimated during FY 2020-21 (Rs. Cr.) ...... 317
Table 4.45:Commission Approved: O&M Expenses for FY 2020-21 (Rs. Cr.) ............................ 319
Table 4. 46: Petitioner Submission: Additional O&M Expenses estimated for FY 2020-21 (Rs. Cr.) ......... 319
Table 4. 47:Petitioner Submission: Capital Expenditure and Capitalisation proposed by the
Petitioner in the Business Plan (Rs. Cr.) ...................................................................................... 321
Table 4. 48: Petitioner Submission: Distribution Loss Targets proposed by the Petitioner in the
Business Plan ............................................................................................................................... 322
Table 4.49:Commission Approved: Consumer Contribution Capitalized (Rs. Cr.) ..................... 324
Table 4.50:Petitioner Submission: Depreciation for FY 2020-21 (Rs. Cr.) ................................. 324
Table 4.51:Commission Approved: Depreciation for FY 2020-21 (Rs. Cr.) ................................ 325
Table 4. 52:Petitioner Submission: Means of Finance for FY 2020-21 (Rs. Cr.) ......................... 326
Table 4. 53:Petitioner Submission: Working Capital for FY 2020-21 (Rs. Cr.) ............................ 326
Table 4. 54:Commission Approved: Working Capital for FY 2020-21 (Rs. Cr.) .......................... 327
Table 4.55:Petitioner Submission: Means of Finance for FY 2020-21 (Rs. Cr.) ......................... 327
Table 4.56:Petitioner Submission: Equity and Debt for FY 2020-21 (Rs. Cr.) ............................ 328
Table 4. 57:Petitioner Submission: Regulated Rate Base for FY 2020-21 (Rs. Cr.) .................... 328
Table 4. 58:Petitioner Submission: Weighted Average Cost of Capital (WACC) for FY 2020-21 (Rs. Cr.) 329
Table 4. 59:Petitioner Submission: RoCE for FY 2020-21 (Rs. Cr.) .............................................. 329
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 15
Table 4.60:Commission Approved: RRB (Rs. Cr.) ........................................................................ 331
Table 4.61:Commission Approved: Rate of interest on loan ..................................................... 333
Table 4. 62:Commission Approved: Weighted Average Cost of Capital (WACC) for FY 2020-21
(Rs.Cr) .......................................................................................................................................... 334
Table 4. 63:Commission Approved: Return on Capital Employed(Rs. Cr.) ................................ 334
Table 4. 64:Commission Approved: Carrying Cost for FY 2020-21 (Rs. Cr.) .............................. 335
Table 4. 65:Petitioner Submission: Aggregate Revenue Requirement for FY 2020-21 (Rs. Cr.) 336
Table 4.66:Commission Approved: ARR for Wheeling and Retail Business for FY 2020-21 (Rs. Cr.) ....... 336
Table 4. 67:ARR for Wheeling Business for FY 2020-21 (Rs. Cr.) ................................................ 336
Table 4. 68:ARR for Retail Business for FY 2020-21 (Rs. Cr.) ...................................................... 337
Table 4. 69: PPAC Amount (Rs Cr) considered for FY 2020-21 ................................................... 341
Table 4. 70: Approved PPAC (%) ................................................................................................. 342
Table 4. 71:Petitioner Submission: Revenue (Gap) for FY 2020-21 (Rs. Cr.) .............................. 343
Table 4. 72:Commission Approved: Revenue (Gap) for FY 2020-21 (Rs. Cr.) ............................ 343
Table 5. 1:Revenue (Gap)/Surplus of BRPL till FY 2018-19 (Rs. Cr.) ........................................... 344
Table 5. 2: Revenue (Gap)/Surplus of BYPL till FY 2018-19 (Rs. Cr.) .......................................... 344
Table 5. 3: Revenue (Gap)/Surplus of TPDDL till FY 2018-19 (Rs. Cr.) ........................................ 345
Table 5. 4: Revenue (Gap)/Surplus of three DISCOMS till FY 2018-19 (Rs. Cr.).......................... 345
Table 5. 5: Revenue at Revised Tariffs of BRPL for FY 2020-21 (Rs. Cr.) ..................................... 346
Table 5. 6: Revenue at Revised Tariffs of BYPL for FY 2020-21 (Rs. Cr.) ..................................... 346
Table 5. 7: Revenue at Revised Tariffs of TPDDL for FY 2020-21 (Rs. Cr.) ................................. 347
Table 5. 8: Revenue from 8% Surcharge for FY 2020-21 (Rs. Cr.) ............................................... 347
Table 5. 9: ARR, Revenue at revised tariff, net Revenue (Gap)/Surplus for FY 2020-21 (Rs. Cr.) ............. 347
Table 5. 10: Distribution Loss for FY 2020-21 (%) ...................................................................... 349
Table 5. 11: Approved Energy Input for FY 2020-21 (MU) ......................................................... 349
Table 5. 12: Wheeling cost for different voltages for FY 2020-21 (Rs. Cr.) ................................ 350
Table 5. 13: Wheeling Charges for FY 2020-21 (Rs/Unit) .......................................................... 350
Table 5. 14: Retail Supply cost for different voltages for FY 2020-21 (Rs. Cr.) ........................... 350
Table 5. 15: Retail Supply Charges at different voltages for FY 2020-21 (Rs/Unit) .................... 351
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 16
Table 5. 16: Cost of Supply for BRPL (Rs. /Unit).......................................................................... 351
Table 5. 17: Cost of Supply for BYPL (Rs./Unit) ........................................................................... 351
Table 5. 18: Cost of Supply for TPDDL (Rs. /Unit) ....................................................................... 351
Table 5. 19: Ratio of ABR to ACOS of BRPL approved for FY 2020-21 ........................................ 354
Table 5. 20: Ratio of ABR to ACOS of BYPL approved for FY 2020-21 ........................................ 354
Table 5. 21: Ratio of ABR to ACOS of TPDDL approved for FY 2020-21...................................... 355
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 17
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
COVID Corona Virus Disease
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)
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 18
Abbreviation Explanation
DMRC Delhi Metro Rail Corporation
DPCL Delhi Power Company Limited
DTL Delhi Transco Limited
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
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 19
Abbreviation Explanation
NDMC New Delhi Municipal Council
NEP National Electricity Policy
NGO Non Government Organisation
NHPC National Hydroelectric Power Corporation
NPCIL Nuclear Power Corporation of India Limited
NRPC Northern Regional Power Committee
NTI Non-Tariff Income
NTP National Tariff Policy
O&M Operations and Maintenance
OCFA Original Cost of Fixed Assets
PGCIL Power Grid Corporation of India
PLF Plant Load Factor
PLR Prime Lending Rate
PPA Power Purchase Agreement / Power Purchase Adjustment
PPCL Pragati Power Corporation Limited
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 Associations
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
THDC Tehri Hydro Development Corporation
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 Unit of Measurement
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 20
Abbreviation Explanation
WACC Weighted Average Cost of Capital
WC Working Capital
WPI Wholesale Price Index
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 21
A1: INTRODUCTION
1.1 This Order relates to the petition filed by BSES Rajdhani Power Limited (BRPL)
(hereinafter referred to as ‘BRPL’ or the ‘Petitioner’) for True-Up of Aggregate Revenue
Requirement (ARR) for FY 2018-19 for Distribution Business in terms of Delhi Electricity
Regulatory Commission (Terms and Conditions for Determination of Tariff) Regulations,
2017 (hereinafter referred to as 'Tariff Regulations, 2017') and Delhi Electricity
Regulatory Commission (Business Plan) Regulations, 2017 (hereinafter referred to as
'Business Plan Regulations, 2017’); and approval of ARR & Tariff for FY 2020-21 in terms
of Tariff Regulations, 2017 and Delhi Electricity Regulatory Commission (Business Plan)
Regulations, 2019 (hereinafter referred to as 'Business Plan Regulations, 2019’).
BSES RAJDHANI POWER LIMITED (BRPL)
1.2 BSES Rajdhani Power Limited (BRPL) is a company incorporated under the Companies
Act, 1956 and is engaged in the business of Distribution and Retail Supply of Electricity
within its area of supply (as defined in the licence) in the National Capital Territory (NCT)
of Delhi.
DELHI ELECTRICITY REGULATORY COMMISSION
1.3 Delhi Electricity Regulatory Commission (hereinafter referred to as ‘DERC’ or the
Commission’) was constituted by the GoNCTD on 03/03/1999 and it became operational
from 10/12/1999.
1.4 The Commission’s approach to regulation is driven by the Electricity Act, 2003, the
National Electricity Plan, the National Tariff Policy and the Delhi Electricity Reform Act
2000 (hereinafter referred to as ‘DERA’). The Electricity Act, 2003 mandates the
Commission to take measures conducive to the development and management of the
electricity industry in an efficient, economic and competitive manner, which inter alia
includes formulation of Tariff Regulations and Tariff determination.
THE COORDINATION FORUM MEETING
1.5 Govt. of NCT of Delhi vide notification No. F.11/36/2005/Power/1789 dated 16/06/2005
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 22
constituted the Coordination Forum, comprising of Chairperson and Members of DERC,
CMD of DTL, Managing Director of IPGCL/PPCL, CEOs of NDPL (now TPDDL), BYPL and
BRPL with Secretary, DERC as the Member Secretary. Since the Committee constituted
did not include NDMC and MES, who also distribute power in Delhi, the Commission had
decided to invite them for all the meetings.
1.6 The 29th Co-ordination Forum Meeting was held on 04/03/2020 in the office of the
Commission. Apart from the Chairperson, Members and other senior officers from the
Commission, the 29th Co-ordination Forum Meeting witnessed participation from CEOs
of BRPL and BYPL, representatives of DTL, SLDC, IPGCL, PPCL, TPDDL, NDMC.
1.7 The issues which were deliberated during the meeting are as listed below:
Table 1.1: Issues Discussed in 29th Co-ordination Forum Meeting
Sr. No. Issues Discussed
a. Confirmation of minutes dated 09/03/2015 and amendment dated 07/04/2015, action taken on decisions.
b. Summer Preparedness
c. Presentation by DTL on Islanding scheme in Delhi
d. Proposal for disposal of DTs inherited from DVB which are beyond repair.
e. Review Progress of replacement of oil filled transformers by dry type transformers
f. Compliance of information to the consumers for scheduled power outages and un-scheduled power outages.
g. Channels and manpower for registration of complaints related to outages during summer period.
h. Status of implementation of Smart Meters
i. Status of maintenance of toll free number for registration of electricity grievance.
j. Surrender/ Re-allocation of Long Term Power, considering Demand-Supply scenario till FY 2024-25.
k. Status of RPO Compliance and initiatives thereafter to meet the trajectory as stipulated in DERC (Business Plan Regulations), 2019.
l. DSM initiatives and Actual Savings thereafter.
MULTI YEAR TARIFF REGULATIONS
1.8 The Commission issued Tariff Regulations, 2017 vide gazette notification dated
31/01/2017 specifying Terms and Conditions for Determination of Tariff for Distribution
of Electricity under the Multi Year Tariff (MYT) framework. Further the operational
norms for Distribution utilities have also been approved by the Commission in Business
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 23
Plan Regulations, 2017 under Tariff Regulations, 2017 for the period FY 2017-18 to FY
2019-20, and, in Business Plan Regulations, 2019 under Tariff Regulations, 2017 for the
period FY 2020-21 to FY 2022-23.
FILING OF PETITION FOR TRUE-UP OF FY 2018-19 AND ARR FOR FY 2020-21
FILING AND ACCEPTANCE OF PETITION
1.9 BRPL has filed its Petitions for the approval of Truing up of Expenses upto FY 2018-19
and ARR for FY 2020-21, before the Commission on 03/12/2019 and 12/02/2020
respectively.
1.10 The Commission admitted the Petitions vide its Order dated 20/02/2020 subject to
clarifications / additional information, if any, which would be sought from the Petitioner
from time to time. A copy of the Admission Order dated 20/02/2020 is enclosed as
Annexure I to this Order.
1.11 Further, in view of the changed circumstances due to COVID-19, the Commission
deemed it appropriate to give an opportunity to utilities to submit revised Tariff
Petitions/ additional information w.r.t. ARR for FY 2020-21, by 30/05/2020.
1.12 On request of utilities to extend the time period for submission of revised Tariff Petitions
for FY 2020-21, the final date for submission was extended upto 05/06/2020.
1.13 The complete copy of the Petition filed by the Petitioner along with additional
information has been uploaded on website of the Commission (www.derc.gov.in) and
the Petitioner.
1.14 The Executive Summary of Tariff Petitions, Executive Summary of Additional Information
have also been uploaded on Commission’s website at www.derc.gov.in.
INTERACTION WITH THE PETITIONER AND PUBLIC HEARING
1.15 The Order has referred at numerous places about various actions taken by the
“Commission”. It may be mentioned for the sake of clarity, that the term “Commission”
in most of the cases refers to the officers of the Commission and C&AG empanelled
Auditors appointed by the Commission for carrying out the due diligence on the Petition
filed by the Petitioner, obtaining and analyzing information/clarifications received from
http://www.derc.gov.in/
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 24
the Petitioner and submitting all issues for consideration by the Commission.
1.16 A preliminary scrutiny/analysis of the Petition submitted by the Petitioner was carried
out. Additional information/clarifications have been sought from the Petitioner as and
when required. The Commission and the Petitioner have discussed key issues raised in
the Petition, which included details of Long Term & Short Term Power Purchase, Sales,
Billing, Collection, Capital expenditure and capitalisation plan, allocation of expenses
into Wheeling and Retail Supply Business, loss reduction trajectory, liability towards
SVRS expenditure, etc.
1.17 The Commission also conducted multiple validation sessions with the Petitioner during
which discrepancies in the petition and additional information as required by the
Commission were sought. Subsequently, the Petitioner submitted replies to the issues
raised and provided details and documentary evidence to substantiate its claims
regarding various submissions.
1.18 The Commission scheduled a Public Hearing on Tariff Petitions for True Up of FY 2018-
19 and ARR for FY 2020-21 on 18/03/2020 to take a final view with respect to various
issues concerning the principles and guidelines for tariff determination.
1.19 However, due to outbreak of Corona Virus Disease declared as a pandemic by WHO
(GoNCTD’s Notification No.F.51/DGHS/PH-IV/COVID19/2020/prsecyhfw/2393-2407
dated 13/03/2020), the Public Hearing scheduled on 18/03/2020 was cancelled and last
date of submission of comments/suggestions on Tariff Petitions for True up of FY 2018-
19 and ARR for FY 2020- 21 which was earlier kept till 20/03/2020 was thus extended till
the next date of Public Hearing. The Public Notices, in this regard, were issued by the
Commission.
1.20 In relation to COVID-19, as per Order no. 40-3/2020-DM-I(A) dated 30/05/2020 issued
by Ministry of Home Affairs, Government of India, large gatherings/ congregations have
continued to remain prohibited. Giving due consideration to arisen scenario due to
outbreak of Corona Virus Disease which refrains from holding Public Gatherings, the
Commission finally decided not to conduct Public Hearing this year, for issuance of Tariff
Order related to True up of FY 2018-19 and ARR of FY 2020-21 and communicated the
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 25
same through public notice including on Commission’s website. Alternatively, all
stakeholders have been given additional time-period till 30/06/2020 for submitting
comments/suggestions on tariff petitions/ additional information filed by the utilities.
1.21 A soft copy of the petition was also made available in CD form on payment of Rs. 25/-
per CD or a copy of the petition was also made available for purchase from the
respective Petitioner’s head-office on working day till 30/06/2020 between 11 A.M. and
4 P.M. on payment of Rs.100/- either by cash or by demand draft/pay order.
1.22 In order to extend help to the stakeholders in understanding the ARR Petition and filing
their comments, four officers of the Commission viz. Joint Director (Tariff-Engineering),
Joint Director (Performance Standards & Engineering), Deputy Director (Tariff Accounts-
Financial Analysis) and Deputy Director (Tariff-Engineering) were nominated for
discussion on the ARR Petitions. This was duly mentioned in the Public Notices published
by the Commission.
1.23 The Commission received written comments from the stakeholders. The comments of
the stakeholders were also forwarded to the Petitioner who, responded to the
comments of the stakeholders with a copy of its replies to the Commission.
1.24 The issues and concerns raised by various stakeholders have been examined by the
Commission. The major issues made by the stakeholders, the responses of the Petitioner
thereon and the views of the Commission, have been summarized in Chapter A2.
1.25 The Commission has therefore considered the inputs/comments received from various
stakeholders alongwith the due diligence conducted by the officers of the Commission
and C&AG empanelled Auditors in arriving at its final decision.
PUBLIC NOTICE
1.26 The Commission has issued Public Notice in the following newspapers (on dates
mentioned alongside), indicating the venue, date and time of Public Hearing scheduled
on 18/03/2020 and inviting comments from stakeholders on the Tariff Petition filed by
the Petitioner latest by 20/03/2020:
(a) Hindustan Times (English) : 04/03/2020
(b) The Hindu (English) : 04/03/2020
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 26
(c) The Times of India (English) : 04/03/2020
(d) Mail Today (English) : 04/03/2020
(e) Navbharat Times(Hindi) : 04/03/2020
(f) Punjab Kesri (Hindi) : 04/03/2020
(g) Dainik Jagran (Hindi) : 04/03/2020
(h) Jadid-In-Dinon (Urdu) : 04/03/2020
(i) Jan Ekta (Punjabi) : 04/03/2020
Public Notice was also uploaded on Commission’s website www.derc.gov.in.
1.27 The Petitioner also published a Public Notice indicating salient features of its petition for
inviting comments from the stakeholders and requesting to submit response on the
petition on or before 20/03/2020 in the following newspapers on the respective dates
mentioned alongside:
(a) The Pioneer (English) : 05/03/2020
(b) The Times of India (English) : 05/03/2020
(c) Nav Bharat Times (Hindi) : 06/03/2020
(d) Punjabi Tribune (Punjabi) : 06/03/2020
(e) Inquilab (Urdu) : 06/03/2020
1.28 As stated in preceding paras that due to outbreak of Corona Virus Disease declared as a
pandemic by WHO (GoNCTD’s Notification No.F.51/DGHS/PH-
IV/COVID19/2020/prsecyhfw/2393-2407 dated 13/03/2020), the Public Hearing which
was scheduled on 18/03/2020 was cancelled. The Commission issued a Public Notice in
this regard in the following newspapers:
(a) Hindustan Times (English) : 14/03/2020
(b) The Hindu (English) : 14/03/2020
(c) Times of India (English) : 14/03/2020
(d) Mail Today (English) : 14/03/2020
(e) Navbharat Times (Hindi) : 14/03/2020
(f) Dainik Jagran (Hindi) : 14/03/2020
Public Notice was also uploaded on Commission’s website www.derc.gov.in.
1.29 Further, in view of the circumstances arisen due to outbreak of COVID-19 which refrains
from holding Public Gatherings, the Commission decided not to conduct Public Hearing,
for issuance of Tariff Order related to True up of FY 2018-19 and ARR of FY 2020-21, and
http://www.derc.gov.in/http://www.derc.gov.in/
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 27
all stakeholders have been given additional time-period till 30.06.2020 for submitting
comments/suggestions on tariff petition/ additional information filed by the Petitioner.
In this regard, the Commission issued Public Notice in the following newspapers inviting
comments from stakeholders on the Revised Tariff Petitions and additional information
filed by the Petitioner latest by 30/06/2020:
(a) Hindustan Times (English) : 13/06/2020
(b) The Hindu (English) : 13/06/2020
(c) The Times of India (English) : 13/06/2020
(d) Mail Today (English) : 13/06/2020
(e) Navbharat Times(Hindi) : 13/06/2020
(f) Punjab Kesri (Hindi) : 13/06/2020
(g) Dainik Jagran (Hindi) : 13/06/2020
(h) Jadid-In-Dinon (Urdu) : 13/06/2020
(i) Jan Ekta (Punjabi) : 13/06/2020
1.30 Copies of all the Public Notices are available on Commission’s website www.derc.gov.in
LAYOUT OF THE ORDER
1.31 This Order is organised into six Chapters:
a) Chapter A1 provides details of the tariff setting process and the approach of the
Order.
b) Chapter A2 provides brief of the comments of various stakeholders, the
Petitioner’s response and views of the Commission thereon.
c) Chapter A3 provides details/analysis of the True up of FY 2018-19 and impact
of past period true up based on judgement of Hon’ble APTEL, if any, Review
Order of the Commission, if any, and its directives on the matter.
d) Chapter A4 provides analysis of the petition for determination of the Aggregate
Revenue Requirement for FY 2020-21.
e) Chapter A5 provides details of the determination of Wheeling and Retail Supply
Tariff for all consumer categories for FY 2020-21, and the approach adopted by
the Commission in its determination.
f) Chapter A6 provides details of the Directives of the Commission.
1.32 The Order contains following Annexures, which are an integral part of the Tariff Order:
http://www.derc.gov.in/
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 28
a) Annexure I- Admission Order.
b) Annexure II - List of the stakeholders who submitted their comments on True-
up of expense for FY 2018-19 and approval of Aggregate Revenue Requirement
& Tariff for FY 2020-21.
PERFORMANCE REVIEW
1.33 Regulation 77 (3) & 77 (3)(i) of the DERC (Supply Code and Performance Standards)
Regulations, 2017 stipulates as under:
“77(3) The Licensee shall furnish to the Commission, in a report as per the formats
for every quarter and in a consolidated annual report for each financial year, the
following information as to the Overall Standards of Performance:
(i) The level of performance achieved with reference to those specified
in Schedule-II as per the format prescribed in the Commission’s Orders;
1.34 The Commission has sought inputs on overall Standards of Performance for FY 2018-19
as prescribed in Schedule-II of the DERC (Supply Code and Performance Standards)
Regulations, 2017. The details submitted by BRPL for FY 2018-19 are as follows:
Table 1.2:Standards of Performance for FY 2018-19
Sr.
No
Service Area Overall
Standards of
Performance
Total
Cases
Received
(A)
Complaints
Within Time
Complaints
Beyond
Time
Standard of
Performance
achieved (C)
1. Power Supply Failure
(i)
Continuous power failure
affecting individual
consumer and group of
consumer upto 100
connected at Low voltage
supply, excluding the failure
where distribution
transformer requires
replacement.
At least 95% calls received
should be rectified within
prescribed time limits
979730 979566 164 100%
(ii)
Continuous power failure
affecting more than 100
consumer connected at Low
voltage supply excluding the
128835 128763 72 100%
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 29
Sr.
No
Service Area Overall
Standards of
Performance
Total
Cases
Received
(A)
Complaints
Within Time
Complaints
Beyond
Time
Standard of
Performance
achieved (C)
failure where distribution
transformer requires
replacement.
(iii)
Continuous power supply
failure requiring
replacement of distribution
transformer.
76 74 2 97%
(iv)
Continuous power failure
affecting consumers
connected through High
Voltage Distribution System
(HVDS) and not covered
under (i) & (ii) above
336620 336620 0 100%
(v) Continuous scheduled power
outages
At least 95 % of cases resolved
within Time Limit
14253 14253 0 100%
(vi) Replacement of burnt meter 41947 38479 2982 92%
Period of Scheduled Outage
2 Maximum duration in a
single stretch
At least 95% of cases resolved
within time limit
0 0 0
Restoration of supply by 6:00
PM 540 0 0
3 Faults in street light
maintained by the License
At least 90% cases should be complied
within prescribed time limits
26109 26076 34 100%
Reliability Indices
4 SAIFI 1.63
SAIDI 1.45
CAIDI 10.27
APPROACH OF THE ORDER
APPROACH FOR TRUE UP OF FY 2018-19
1.35 The Commission in its Business Plan Regulations, 2017 has indicated that Regulations
shall remain in force for a period of three (3) years. The relevant Regulation of Business
Plan Regulations, 2017, in this regard, is as follows:
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 30
“1(2) These Regulations, shall remain in force for a period of 3 (three) years i.e.,
for FY 2017-18, FY2018-19 and FY 2019-20, unless reviewed earlier.”
1.36 The Commission in its Tariff Regulations, 2017 has specified that Regulations shall be
deemed to have come into effect from 1st February, 2017. The Relevant Regulation of
Tariff Regulations, 2017, in this regard, is as follows:
“(4) These Regulations shall be deemed to have come into force from Ist February,
2017 and shall remain in force till amended or repealed by the Commission. “
1.37 Accordingly, ARR for FY 2018-19 has been trued up as per Tariff Regulations, 2017 and
Business Plan Regulations, 2017.
APPROACH FOR ARR AND TARIFF FOR FY 2020-21
1.38 The Commission vide its Notification dated 31st January, 2017 had issued Tariff
Regulations, 2017. Further, the Commission has issued Business Plan Regulations, 2019.
1.39 The Commission has evaluated the revised ARR/ additional information submitted by
the Petitioner on the basis of the provisions in Tariff Regulations, 2017 read with
Business Plan Regulations, 2019 and other factors considered appropriate by the
Commission as discussed hereafter.
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 31
A2: RESPONSE FROM THE STAKEHOLDERS
2.1 Summary of objections/suggestions from stakeholders, response of DISCOMs (viz. Tata
Power Delhi Distribution Limited (TPDDL), BSES Rajdhani Power Limited (BRPL), BSES
Yamuna Power Limited (BYPL), New Delhi Municipal Council (NDMC) and the
Commission’s view.
INTRODUCTION
2.2 Section 64(3) of the Electricity Act, 2003, stipulates that the determination of Tariff shall
be Section 62 of the Electricity Act, 2003 for the Distribution Licensees on consideration
of all objections/suggestions received from the public and the response of the DISCOMs
response thereon to the objections/suggestions of stakeholders, issue a tariff order
accepting the applications with such modifications or such conditions as applicable may
be specified in the order.
2.3 The Commission has on examination the issues took into consideration the comments/
suggestions offered by the various stakeholders in their written statements and also the
response of the Petitioners thereon.
2.4 The comments and the suggestions of stakeholders, and the petitioners
replies/response thereon the summarised views of the Commission are appended
under various subheads.
ISSUE 1: PUBLIC HEARING AND OBJECTION FILING PROCESS
STAKEHOLDERS’ VIEW
2.5 Publish MYT Business Regulations and Tariff Petition for FY 2020-21 in newspapers as per
the Electricity Act, 2003.
2.6 Public hearing for Mushroom Cultivation Tariff Category.
2.7 The time period for submission of the comments may be extended.
2.8 Public notice must reflect separately all charges and utilization separately.
2.9 Public Notice dated 06/03/2020 in the case of BYPL and TPDDL, must be treated as null
and void as the same is not traceable.
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 32
PETITIONER’S SUBMISSION
TPDDL
2.10 The Commission may comment on MYT Business Regulations as it may deemed fit. Tata
Power-DDL has published the Public Notice on True-Up FY 2018-19 and ARR FY 2020-21
in various newspapers in the 1st week of March 2020 viz. Indian Express (English)-
03/03/2020; Hindustan Times (English)-03/03/2020; Hindustan (Hindi)-04/03/2020;
Sahafat (Urdu)-05/03/2020; Quami Patrika (Punjabi)-06/03/2020.
2.11 All requisite details and the information thereon have been provided in the petition.
BYPL
2.12 The Commission is uploading on its website of the stakeholder’s comment regarding the
procurement of the tariff petition.
The complete petitions and executive summaries for comments has been published
along with the public notices stating that the public hearing could not be held due to the
COVID-19 pandemic.
finalize the Tariff Orders in line with DERC (Terms and conditions for determination of
Tariff) Regulations, 2017 and DERC (Business Plan) Regulations, 2017 and DERC (Business
Plan) Regulations, 2019 notwithstanding the fact that is the prerogative of the
Commission.
BRPL
2.13 BYPL and TPDDL are two different Distribution Licensees of Delhi and Public Notices have
been issued as per directions of the Commission.
NDMC
2.14 On fresh date of the public hearing which was earlier scheduled on 18/03/2020 has been
resolved as the public hearing which was postponed has subsequently been cancelled.
The stakeholders have been asked to submit their comments and objections by letters
and e-mails. Due to global pandemic of COVID-19, as it is not advisable to hold a public
gathering which may cause prejudice to the health and life of the citizens.
COMMISSION’S VIEW
2.15 The Commission endeavours to issue Tariff Orders as per provisions of the Electricity
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 33
Act, 2003.
2.16 The Commission vide its Public Notice dated 04/03/2020 scheduled a Public Hearing on
Tariff Petitions for True-Up of Expenses for FY 2018-19 and Aggregate Revenue
Requirement (ARR) for FY 2020-21 on 18/03/2020 to take a final view on issues
concerning the principles and guidelines for tariff determination.
2.17 However, due to outbreak of Corona Virus Disease declared as a pandemic by WHO
(GoNCTD’s Notification No.F.51/DGHS/PH-IV/COVID19/2020/prsecyhfw/2393-2407
dated 13/03/2020), the Public Hearing scheduled on 18/03/2020 was cancelled. The last
date of submission of comments/suggestions on Tariff Petitions for True-up of FY 2018-
19 and ARR for FY 2020- 21 which was earlier kept till 20/03/2020, was thus extended
till the next date of Public Hearing. The Public Notices, in this regard, were issued by the
Commission.
2.18 As per Order No. 40-3/2020-DM-I(A) dated 30/05/2020 issued by Ministry of Home
Affairs, Government of India, large gatherings/ congregations was prohibited.
Accordingly, Commission decided to refrain from conducting the Public Hearing this
year, for issuance of Tariff Order related to True-up of FY 2018-19 and ARR of FY 2020-
21 and communicated the same through public notice including on Commission’s
website. Alternatively, the stakeholders were given additional time-period till
30/06/2020 for submitting comments/suggestions on tariff petitions/ additional
information filed by the utilities.
2.19 The Commission determines the ARR for the DISCOMs as per the provisions of the
applicable Regulations. The Commission in its Tariff Order has provided the break-up of
the major components considered for projecting costs of supply during FY 2020-21, like
Power Purchase Cost, O&M cost, CAPEX, financing cost, the gap in True-up of FY 2018-
19 and carrying cost for the regulatory assets etc. The Petitioners submit the audited
accounts to substantiate their claims. The Tariff Petitions are duly scrutinized and
admitted only if found in order as per the DERC (Comprehensive Conduct of Business)
Regulations, 2001. The Petitioners furnish clarifications/additional information, as and
when required by the Commission. The Tariff Order is issued after prudence check of
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 34
the Petitions submitted by the DISCOMs and after considering each element of cost
projected in the petitions with due analysis and ensuring proper justification.
2.20 The Commission considering prevalent grim situation due to outbreak of COVID-19 has
already exercised its powers to address the hardships being faced by Delhi electricity
consumers and accordingly, in its Suo-Motu Order dated 07/04/2020, the Commission
allowed a moratorium on the payment of Fixed Charges for next three billing cycles
beginning from March 24, 2020 to the consumers covered under Public Utilities,
Industrial and Non-Domestic Tariff Categories, which stipulates as under:
“10(e). A moratorium on the payment of Fixed Charges for next three billing
cycles beginning from March 24, 2020 is provided to the consumers covered under Public
utilities, Industrial and Non Domestic Tariff Categories. The fixed charges accumulated
over the said period shall be spread over the next three billing cycles after June 30, 2020
without any LPSC. Further, the consumers of these categories, who desire so, may pay
Fixed Charges for the bills raised during the period starting from March 24, 2020 till June
30, 2020.”
2.21 The Commission has not increased the tariff for FY 2020-21. Further, considering the
hard ships faced by non-domestic and industrial consumers in lock down due to COVID-
19, the Commission has reduced the fixed charges for the months of April, 2020 and
May, 2020 for these consumers. Also, the Commission has waived off Time of Day Tariff
Surcharge for September for all eligible consumers.
ISSUE 2: BUSINESS PLAN& SOP REGULATION
STAKEHOLDERS’ VIEW
2.22 DERC Supply Code Regulations should ensure parity between consumers and DISCOMS,
and should be transparent.
2.23 Collection efficiency should be 100%;
2.24 Any collection above 100% billing should be treated as Non Tariff Income, and added to
the revenue;
2.25 The scheme for rebate of 0.20% of Annual bill per extra electricity bill over six bills in an
-
BSES RAJDHANI POWER LIMITED TARIFF ORDER FY 2020-21
Delhi Electricity Regulatory Commission Page 35
annum may please be reintroduced for domestic consumers. The DISCOM collects almost
90% electricity bills from Consumer, fifteen(15) days in advance, and total bill is cleared
ten ( 10) days in advance prior to payment of monthly