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Bihar Electricity Regulatory Commission (Multi Year Distribution Tariff) Regulations, 2015

Published vide Notification No. BERC-Suo Motu Proceeding No. 30/2014/06, dated 15.9.2015

Last Updated 15th February, 2020 [bh709]

(1) "Act" means the Electricity Act, 2003 (36 of 2003);

(2) "Aggregate Revenue Requirement" or "ARR" means the costs pertaining to the licensed business which are permitted, in accordance with these Regulations, to be recovered from the tariffs and charges determined by the Commission;

(3) "Base Year" means the financial year immediately preceding first year of the control period and used for the purposes of these Regulations;

(4) "Commission" means the Bihar Electricity Regulatory Commission;

(5) "Conduct of Business Regulations" means the Bihar Electricity Regulatory Commission (Conduct of Business) Regulations, 2005, and its amendments from time to time.

(6) "Control Period" means a multi-year period normally comprising of five financial years or as may be determined by the Commission, for submission of forecast in accordance with these Regulations;

(7) "Expenditure" Reasonable and required expenditure actually incurred on the following:

(a) purchase of energy;

(b) salaries and wages of staff, welfare expenses excluding management remuneration covered below;

(c) Directors remuneration, fees, expenses including facilities;

(d) salaries and wages of corporate office / registered office;

(e) financing cost excluding penal interest / charges;

(f) interest charges on loan(s) borrowed for capitalized assets;

(g) interest on temporary accommodation to the extent of approved unrealized arrears from the consumers

(h) interest on working capital

(i) Return on equity;

(j) Income Tax

(k) financing charges applicable to operational account;

(l) interest on cash security deposits from consumers;

(m) interest on advance against sales from consumers, if any;

(n) Impact of variation in foreign exchange rate in case of foreign currency loan taken with due approval and is not capitalized;

(o) Depreciation

(p) Rents, rates and taxes, other than all taxes relating to income / profits;

(q) Legal charges;

(r) Auditor's expenses, Auditor's fees; auditor's expenses; Payment to Auditors in any other capacity or for any work which is necessary to be got done from them in connection with audit;

(s) Consultancy charges for work which cannot be done in house or is uneconomical in doing in-house or is essential to be done from outside sources;

(t) Bad debts actually written off subject to Commission's clearance;

(u) Other expenses necessary which are ancillary or incidental to the business of electricity except penalty etc levied under the Act or any other law in force;

(8) "Financial Year" means a period commencing on 1st April of a calendar year and ending on 31st March of the subsequent calendar year;

(9) "Income" shall include all income from any sources but shall not be limited to the following:

(a) sale of energy or gross receipts from sale of energy less discounts / rebates given based on the orders of the Commission;

(b) Rental of meters, plant, equipment and other apparatus hired to the consumers;

(c) Income from services to consumers by way of repair or any sale or other service other than capital receipts;

(d) Interest on investments, bank balances including fixed and call deposits and any other income in the form of interest;

(e) Profit on sale of assets;

(f) Wheeling of energy;

(g) Non tariff income;

(h) Income from other business;

(i) Transmission of energy;

(j) Cross subsidy surcharge u/s 42(2) of the Act;

(k) Additional surcharge u/s 42(4) of the Act;

(l) Any receipt or refund from other sources against any expense or likely expense which has been earlier allowed as expense in the tariff;

(m) All other general receipts arising from and ancillary or incidental to the business of electricity supply;

(n) Other general receipts in terms of Act / Regulations including use of assets for other business whether actually recovered or not;

(10) "Licence" means a licence granted under clause (b) of section 14 of the Act;

(11) "Licensed Business" means the functions and activities, which the licensee is required to undertake in terms of the licence granted by the Commission or being a deemed licensee as referred under sections 14 and 172 of the Act;

(12) "Licensee" means a person who has been granted a licence and shall include a deemed licensee;

(13) "Non-Tariff Income" means income relating to the licensed business other than from tariff (wheeling and retail supply), and excluding any income from other business, cross-subsidy surcharge and additional surcharge;

(14) "Other Business" means any other business of the distribution licensee for optimum utilization of its assets within the meaning of Section 51 of the Act;

(15) "Retail Supply Business" means the business of sale of electricity by a distribution licensee to the consumers within the area of supply in accordance with the terms of the licence for distribution and retail supply of electricity;

(16) "Wheeling" means the operation whereby the distribution system and associated facilities of a distribution licensee are used by another person for the conveyance of electricity on payment of charges to be determined under section 62 of the Act, and in the event where use of the distribution system and associated facilities is by a consumer, on payment of a surcharge in addition to the charges for wheeling as may be determined by the Commission under the first proviso to sub-section (2) of Section 42 of the Act, an additional surcharge on the charges of wheeling, as may be specified by the Commission, if applicable, to meet the fixed cost of such distribution licensee arising out of his obligation to supply, under Sub-section (4) of Section 42 and wheeling charges under clause (c) of sub-section (1) of Section 62;

(17) "Wheeling Business" means the business of operating and maintaining a distribution system for conveyance of electricity in the area of supply of the distribution licensee.

Part - II

General Principles

i. Control Period, before commencement of which a forecast of the Aggregate Revenue Requirement and expected revenue from existing tariff and charges shall be submitted by the applicant and approved by the Commission;

ii. A detailed Business Plan based on the Operational Norms and trajectories of performance parameters specified in the MYT Regulations, for each year of the Control Period, shall be submitted by the applicant for the Commission's approval, subject to provisions under regulations 8,12,13,and 14 of these Regulations;

iii. Based on the Business Plan, the applicant shall submit a petition with the forecast of Aggregate Revenue Requirement and expected revenue from existing tariff for each year of the Control Period, and the Commission shall approve the tariff for each year of the Control Period;

iv. The mechanism for pass-through of approved gains or losses on account of uncontrollable factors as specified by the Commission in these Regulations;

v. The mechanism for sharing of approved gains or losses arising out of controllable factors as specified by the Commission in these Regulations;

(b) The Distribution Licensee shall submit detailed supporting documents while seeking approval from the Commission.

(c) The approval of the capital expenditure by the Commission for the ensuing year shall be in accordance with load growth, system extension, rural electrification, distribution loss reduction or quality improvement as proposed in the Distribution Licensee's supporting documents.

(d) The Commission may also undertake a detailed review of the actual works compared with the works approved in the previous Tariff Order while approving the capital expenditure for the ensuing year.

(e) In case the capital expenditure is required for emergency work, the licensee shall submit an application, containing all relevant information along with reasons justifying the emergent nature of the proposed work, seeking post facto approval by the Commission.

(f) The Distribution Licensee shall take up the work prior to receiving the approval from the Commission provided that the emergent nature of the scheme has been certified by its Board of Directors.

(g) If the scheme involves capital expenditure of less than INR 5 Crore, and included in the capital investment plan referred in regulation 5.2, the Distribution Licensee shall undertake the execution of the scheme with simultaneous notification to the Commission with all of the relevant supporting documents.

(h) Consumer's contribution towards cost of capital asset shall be treated as capital receipt and credited in current liabilities until transferred to a separate account on Commissioning of the assets.

(i) An amount equivalent to the depreciation charge on such assets for the year shall be appropriated from this account as income to the profit and loss account over the useful life of the asset.

(a) Estimates of quantum of electricity to be supplied to consumers and wheeled on behalf of Distribution System Users for each financial year within the Control Period; and

(b) Prevailing tariff as on the date of making the application.

(a) Force Majeure events, such as acts of war, fire and natural calamities.

(b) Change in law;

(c) Taxes and Duties;

(d) Variation in sales; if the Distribution Licensee has adequate power availability.

(e) Supply availability beyond the control of Distribution Licensee, subject to prudence check and finding of the Commission during True-up exercise.

(f) Variation in the cost of power generation and/or power purchase due to the circumstances specified in regulations 19 (d) and 20 of these Regulations.

(a) Variations in capital expenditure on account of time and/or cost overruns/ efficiencies in the implementation of a capital expenditure project not attributable to an approved change in scope of such project, change in statutory levies or force majeure events;

(b) Variations in distribution losses which shall be measured as the difference between the units input into the distribution system and the units billed for the same year.

(c) Variations in Return on Equity (RoE), depreciation and working capital requirements; However, if the Commission is satisfied that the variation in the working capital requirement is attributable to any uncontrollable factors, the same may be considered as uncontrollable factor.

(d) Failure to meet the standards specified in the Standards of Performance Regulations, except where exempted;

(e) Variation in operation & maintenance expenses, except those attributable to directions of the Commission or to change in Government policy/law

(f) Variation in Wires Availability and Supply Availability, within the control of Distribution Licensee.

Part - III

Procedure

(a) issue a Tariff Order accepting the application with such modifications or such conditions as may be specified in that Order;

(b) reject the application for reasons to be recorded in writing, if such application is not in accordance with the provisions of the Act and the Rules and Regulations made thereunder or the provisions of any other law for the time being in force:

(a) An order for True-Up of expenses shall be issued on annual basis.

(b) An order for True-Up of expenses shall be on the basis of expense estimates made in the beginning of the year under consideration, actual expenses booked in the audited books of accounts of the Distribution Licensee for the year, and after prudence check of data by the Commission.

(c) Where audited books of account are not available at the time of true-up provisional books of accounts duly approved by the Board of Directors of the applicant company shall be used for the provisional True-up process.

(d) Estimates of expenses for the ensuing year shall be on the basis of corresponding figures in the order for True-up of expenses of the previous year and Annual Performance Review or Tariff Order of the current year, as the Commission may consider reasonable and deem fit.

(e) Notwithstanding anything contained in regulation 4 of these Regulations, the Revenue gap/surplus arising out of Truing up shall be considered by the Commission while determining the ARR of ensuing year(s).While approving adjustments towards revenue/expenses in future years, arising out of Truing up exercises, the Commission may allow the carrying costs as determined by the Commission of such expenses/revenues. However the revised estimated gap/surplus as a result of APR shall not be passed in the ARR of ensuing year.

Part - IV

Sales, Power Purchase Quantum and Cost

(a) Abnormal trend or variation in the growth rate of particular category / slab consumer mix in any given area (on the basis of proposed city plan, tax holidays, Government incentives for industrial establishments, migration of consumers due to open access, etc.)

(b) Abnormal trend in the growth rate of a particular slab/category of consumers.

(c) Inflection point in economic cycle (boom, slowdown, recession or expansion)

(d) Variations in weather conditions

(e) Materially significant findings during audit check as per Regulation 16.2 of these regulations.

(a) A team shall be formed by Distribution Licensee to validate the status of meters, load of metered consumers and category classification of consumers in the area of operations of Distribution Licensee.

(b) The overhaul exercise shall be a year-long assessment study conducted on monthly basis for the first year subsequent to the notification of these Regulations.

(c) For the overhaul exercise, consumers shall be sampled for a monthly overhaul from the circles served by the Distribution Licensee.

(d) In the event, inconsistencies are found in the number of metered consumers, status of the meters, load at consumer premises or category classification of the consumers, the forecast arrived at in Regulation 16.1 on the basis of CAGR of historical (3 years) audited sales shall be adjusted accordingly as specified in Regulation 16.1.

(a) Till the time 100% metering of electricity consumers is achieved in area of operation of Distribution Licensee, an independent study shall be conducted by the Distribution Licensee to assess actual consumption of power by un-metered consumer segment:

(b) For three years including the date of notification of these Regulations, yearlong, month-wise, block-wise study referred in Clause (a) of Regulation 17.1 above shall be conducted by the Distribution Licensee and submitted to the Commission.

(c) The study referred to in clause (b) of this Regulation shall cover actual consumption in the block (hours of usage, specifications of motor power etc.) demonstrating seasonal impact, economic development, demographics, consumption pattern, etc. This would aid to develop baseline norms pertaining to electricity consumption in un-metered consumer segments.

(d) Baseline norms shall be established after completion of study in the first year which shall be revised/fine-tuned in the remaining two subsequent years.

(e) After three years of annual study leading to streamlining of processes, study shall be conducted on alternate year basis.

(f) Stratified random sampling shall be used to identify consumers in block/district of study which would be, well distributed representation of the block under purview such that sampled consumers shall exhibit same demographic profile, energy consumption pattern, water level etc. of the block.

(a) The sample of consumers selected shall be monitored and the readings of consumption can be taken from the meters installed at each DT in the sample area.

(b) The load of all the consumers connected on the DT in each of the sample area shall be validated each month to account for any additional load or replacement of old motor with new motor by the consumers.

(c) Based on the result of yearlong month-wise study, the consumption pattern for selected subdivisions shall be established.

(d) The results of the study shall be extrapolated to adjoining areas with similar water level and the same cropping patterns.

(e) The month-wise analysis of the sample selected for the establishment of baseline shall be submitted to the Commission at regular intervals so that the directions of the Commission are incorporated before the completion of study.

(a) During the study, meters shall be installed at input points of the feeder at the sub-station and based on the load flow study the technical loss of the feeder will be evaluated.

(b) The difference of the feeder meter consumption and technical losses will be agricultural consumption.

(c) From every subsequent year, the study report shall be submitted to the Commission by 31st October for the Commission to have enough time to conduct validation check and analysis in collaboration with an independent agency and with due assistance of team designated by the Distribution Licensee.

(d) The Distribution Licensee shall be informed as late as morning of the day scheduled for inspection by the Commission to have reality check and to ensure that power supply and the Distribution Licensee's personnel are available.

(e) Any significant deviation in the parameters reported in annual study from the baseline study may necessitate revision of norms by the Commission.

(b) The approved Power Purchase Quantum and cost shall be net of expected revenue from sale of surplus power, if any, during lean period.

(c) Revenue from sale of surplus power shall be estimated at per unit weighted average price of bilateral purchases.

(d) If there is a short term requirement of power by the Distribution Licensee and such requirement is on account of any factor beyond the control of the Licensee (shortage/non-availability of fuel, snow capping of hydro resources inhibiting power generation in sources stipulated in the plan, unplanned/forced outages of power generating units or acts of God), then the cost shall be passed on to the customers with the approval of the Commission.

(b) The Distribution Licensee shall prepare a short term (less than 1 year) and a medium term (5 years) plan, separately stated for peak and off peak periods, for unrestricted demand of electricity for each consumer category in its area of operation as per Regulation 16 and Regulation 17 of these regulations.

(c) The demand projected shall be grossed-up with distribution losses (as determined by Regulation 18 of these regulations) and transmission losses to arrive at power purchase requirement for the Distribution Licensee.

(d) The Distribution Licensee shall assess quantum of power available at its disposal from state's generating plants, central generating utilities, IPPs etc. and month-wise deficit/surplus schedule shall be developed, separately stated for both peak and off-peak period:

(e) The procurement plan for medium term shall be through competitive bidding.

(f) Long-term procurement plan shall include proposals about acquisition of demand side resources through "standard bid" or "competitive demand side resource bidding process". The procurement shall also include power from plants using renewable sources of energy at least to the extent stipulated by the Commission.

(g) Due to in-firm nature of power from renewable sources of energy, alternate firm source of power (equivalent in terms of energy units) may be specified in the procurement plan (over and above total energy required).

(h) Fixed cost pertaining to such alternate firm source of power, if any, shall be allowed to the Distribution Licensee and actual cost shall be Trued-up.

(a) The Distribution Licensee shall recover the incremental cost incurred due to the following:

1. Own generation if the Distribution Licensee has its own generation.

2. Cost due to variation in cost of power purchase on account of increase in fuel cost.

(b) The incremental cost on own generation and power purchase shall be computed and charged on the basis of actual variation in fuel cost and power purchase cost vis-a-vis the cost approved in the tariff order and shall not be computed on the basis of estimated or expected variation in fuel/power purchase cost and shall be computed on the basis of formula provided in regulation 20.2 below, and shall be charged with prior approval of the Commission.

(d) The Distribution Licensee shall submit details of the incremental cost incurred and to be charged to all consumers for the entire month, along with the detailed computations and supporting documents as may be required for approval and verification by the Commission within first 15 days of the month end.

(e) The Commission shall examine the incremental cost proposed by the Distribution Licensee with supporting documents submitted by the Licensee.

(f) The Distribution Licensee shall upgrade the billing and IT systems to incorporate Incremental Costs (IC) as a component in tariff design.

Qc = Quantity of coal consumed during the adjustment period in Metric Tons (MT)

= (SHR x QPg) (1+TSL)x1000 / GCV, or actual whichever is less Rc1 = Weighted average base rate of coal supplied ex-power station coal yard as approved by the Commission for the adjustment period in Rs. / MT

Rc₁ = Weighted average actual rate of the coal supplied ex-power station coal yard for the adjustment period in Rs. / MT

Rc₂ = Weighted average actual rate of the coal supplied ex-power station coal yard for the adjustment period in Rs. / MT

Qo = Actual Quantity of oil (in KL) consumed during the adjustment period or normative oil consumption as per Tariff order whichever is less.

Ro₁ = Weighted average base rate of oil ex-power station (Rs./KL) approved by the Commission for the adjustment period.

Ro₂ = Weighted average actual rate of oil ex-power station supplied (Rs. / KL) during the adjustment period.

Qpp = Total power purchased from different sources (kWh) = Qpp2+Qpp3

TL = Transmission loss (CTU) (in percentage terms).

Qpp₂ = Power purchase from sources with delivery point within the state transmission or distribution system (in kWh)

Qpp₃ = Power purchase from sources on which CTU transmission loss is applicable (in kWh)

Rpp₁ = Average rate of power purchase as approved by the Commission (Rs. / kWh)

Rpp₂ = Average rate of power purchased during the adjustment period (Rs. / kWh)

Qpg = Own power generation (kWh)

Qpg₁ = Own power generation (kWh) at generator terminal - approved auxiliary consumption

L = Percentage T&D loss as approved by the Commission or actual, whichever is lower.

SHR = Station Heat Rate as approved by the Commission (Kcal / kWh)

TSL = Percentage Transit and Stacking Loss as approved by the Commission.

GCV = Weighted average gross calorific value of coal as fired basis during the adjustment period (Kcal / Kg).

VZ = Amount of variable charges on account of change of cost of unknown factors like water charges, taxes or any other unpredictable and unknown factors not envisaged at the time of tariff fixation subject to prior approval of the Commission (Rs.)

A = Adjustment, if any, to be made in the current period to account for any excess / shortfall in recovery of fuel or power purchase cost in the past adjustment period, subject to the approval of the Commission (Rs.)

(1) The basic nature of FPPCA is 'adjustment' i.e. passing on the increase or decrease in the fuel costs and power purchase costs, as the case may be, compared to the approved fuel costs and power purchase costs in the Tariff Order.

(2) The operational parameters / norms fixed by the Commission in the Tariff Regulations / Tariff Order shall be the basis of calculating FPPCA charges.

(3) The FPPCA will be recovered every month in the form of an incremental energy charge (Rs/kwh) in proportion to the energy consumption of the month in which incremental cost has been incurred and shall not exceed 10% of the approved avg. cost of supply in the Tariff order and balance amount, if any, in the FPPCA over and above this ceiling shall be carried forward to be billed in subsequent month.

(4) Incremental cost of power purchase due to deviation in respect of generation mix or power purchase at higher rate shall be allowed only if it is justified to the satisfaction of the Commission.

(5) Any cost increase by the licensee by way of penalty, interest due to delayed payments, and due to operational inefficiencies shall not be allowed.

(6) FPPCA charges shall be levied on all categories of consumers.

(7) Distribution licensee shall file detailed computation of actual fuel cost in Rs./kWh for each month for each of power stations of the state generators as well as cost of power purchase (Fixed and Variable) from each source/station and a separate set of calculations with reference to permitted level of these costs.

(8) The data in support of the FPPCA claims shall be duly authenticated by an officer of the licensee, not below the rank of Chief Engineer on an affidavit supported with the certified copy of energy bills of power purchase, transmission and RLDC charges, bill for coal purchase and its transportation cost, oil purchase bill and the quantity of coal and oil consumed during the month.

(9) Levy of FPPCA charge will be allowed only when it is ten (10) paise or more per unit. If it is less than 10 (ten) paise/unit, the same may be carried forward for adjustment in the next month.

(10) The incremental cost per kWh due to the FPPCA arrived for a month shall be recovered in the energy bill of the month subsequent to the order of the Commission approving FPPCA with full details of rate and unit(s) on which FPPCA charges have been billed. The Generating Company and the Distribution Licensee shall provide along with the proposal of FPPCA (as applicable to them) for a month, a compliance report of the previous order of the commission in respect of FPPCA.

Part - V

Financial Principles

A. Quantum and Cost of power procurement from various sources

B. Transmission and load dispatch charges

C. Operation and Maintenance expenses;

D. Depreciation

E. Contingency Reserves;

F. Interest on Loan;

G. Interest on Working Capital;

H. Return on Equity;

I. Bad debts, if any

J. Income Tax;

K. Non-Tariff Income; and

L. Income from Other Business

M. Interest on security deposit.

(b) Norms shall be defined in terms of combination of number of personnel per 1000 consumers and number of personnel per substation along with annual expenses per personnel for Employee expenses; combination of A&G expense per personnel and A&G expense per 1000 consumers for A&G expenses and R&M expense as percentage of gross fixed assets for estimation of R&M expenses:

(c) One-time expenses such as expense due to change in accounting policy and arrears paid due to pay commission recommendation shall be excluded from the norms in the trajectory.

(d) The unforeseen expenses beyond the control of the Distribution Licensee such as pay revision, shall be excluded from the norms in the trajectory.

(e) The One-time expenses and the expenses beyond the control of the Distribution Licensee shall be allowed by the Commission over and above normative Operation & Maintenance Expenses after prudence check.

(f) The norms in the trajectory shall be specified over the control period with due consideration to productivity improvements.

(g) The norms shall be determined at constant prices of base year and escalation on account of inflation shall be over and above the baseline.

(h) The Distribution Licensee specific trajectory of norms shall be identified by the Commission on the basis of absolute and relative analysis.

(i) In absolute analysis, Distribution Licensee's audited accounts of operations for last three years, expenses claimed for control period, historically approved cost, and prudence check shall be used by the Commission to estimate values of norms.

(j) In relative analysis, performance parameters of other Distribution Licensees within the same state or in other states, shall be considered by the Commission to estimate norms.

(i) Suitable average of outcomes of absolute and relative analysis shall be taken by the Commission to fix the norms over the control period for the Distribution Licensee.

EMP_n = (EMPb * CPI inflation) + Provision

Where:

EMP_n : Employee expense for the year n

EMP_b : Employee expense as per the norm

CPI inflation : is the average increase in the Consumer Price Index (CPI) for immediately preceding three years

R&M_n = Kb * GFAn

Where:

R&M_n : Repairs & Maintenance expense for nth year

GFA_n : Opening Gross Fixed Assets for nth year

Kb : Percentage point as per the norm

A&G_n = (A&Gb * WPI inflation) + Provision Where:

A&G_n: A&G expense for the year n

A&G_b: A&G expense as per the norm

WPI inflation: is the average increase in the Wholesale Price Index (WPI) for immediately preceding three years

Provision: Cost for initiatives or other one-time expenses as proposed by the Distribution Licensee and validated by the Commission.

Till the norms of A&G expenses is specified by the Commission, the actual historical cost will be considered for determination of A&G expenses.

(b) Depreciation shall not be allowed on assets funded by capital subsidies, consumer contributions or grants.

(c) Depreciation shall be calculated annually on the basis of assets capitalized and put to use based on the straight line method over the useful life of the asset and at the rate specified by the Central Electricity Regulatory Commission.

(d) The residual value of assets shall be considered as 10% and depreciation shall be allowed to a maximum of 90% of the original cost of the asset.

(e) Depreciation shall be charged from the first year of commercial operation of the asset.

(f) A provision of replacement of assets shall be made in the capital investment plan.

(b) The amount so appropriated shall be invested in securities authorized under the Indian Trusts Act, 1882 within a period of six months of close of the financial year.

(c) The Contingency Reserve shall not be drawn upon during the term of the license except to meet such charges as may be approved by the Commission, such as following:

(i) Expenses or loss of profits arising out of accidents, strikes or circumstances which the management could not have prevented;

(ii) Expenses on replacement or removal of plant or works other than expenses required for normal maintenance or renewal;

(iii) Compensation payable under any law for the time being in force and for which no other provision is made:

(b) If the equity actually deployed is more than 30 % of the capital cost, equity in excess of 30 % shall be treated as normative loan:

(c) Actual loan or normative loan, if any, shall be referred as gross normative loan in this Regulation.

(d) The normative loan outstanding as of 1st April of control period shall be computed by deducting the cumulative repayment as approved by the Commission (basis as mentioned below) up to 31st March of current period (a year before control period) from the gross normative loan.

(e) The repayment for the control period shall be deemed to be equal to the depreciation allowed for the year.

(f) Notwithstanding any moratorium period availed by the Distribution Licensee, the repayment of the loan shall be considered from the first year of the control period as per annual depreciation allowed.

(g) The rate of interest shall be the weighted average rate of interest calculated on the basis of actual loan portfolio at the beginning of each year of the control period, in accordance with terms and conditions of relevant loan agreements, or bonds or non-convertible debentures:

(h) The Distribution Licensee shall make every effort to refinance the loan as long as it results in net benefit to the consumers.

(i) The Distribution Licensee shall enable tracking of the loans converted into grants under schemes like APDRP, R-APDRP, RGGVY, RSVP, etc or any other loan from the Central or State Government by providing information and data regularly to the Commission, for enabling the Commission to recover from Distribution Licensee the amount of interest on loans which have been passed on to the consumers in the earlier years and have been converted into grant subsequently so that the recovered amount is passed on to the consumers.

(j) Addition to loan during the year for interest purpose will be restricted to the quantum of assets capitalized and put to use.

(a) O&M expenses for one month

(b) Two months equivalent of expected revenue

(c) Maintenance spares @ 40% of R&M expenses for one month:

(i) Power purchase cost, transmission charges and load dispatch charges of one month

(ii) Depreciation, return on equity and contribution to contingency reserves

(iii) Security deposits from consumers, if any.

(b) The return on the equity invested shall be allowed from the date of start of commercial operation:

(c) The project which will be commissioned w.e.f. 01.04.2016 will be allowed RoE of 15.5% and if project is completed in schedule period 0.5% incentives in form of RoE will be allowed.

(b) The income tax actually payable or paid shall be included in the ARR. The actual assessment of income tax should take into account benefits of tax holiday, and the credit for carry forward losses applicable as per the provisions of the Income Tax Act 1961 shall be passed on to the consumers.

(c) Tax on income, if any, liable to be paid shall be limited to tax on return on the equity component of capital employed. However any tax liability on incentives due to improved performance shall not be considered.

(b) The amount received by the Licensee on account of Non-Tariff Income shall be deducted from the Aggregate Revenue Requirement in calculating the net revenue requirement of Distribution Licensee.

(b) The amortization schedule corresponding to the regulatory asset shall be approved by the Commission and put in effect along with creation of the regulatory asset. The amortization schedule shall normally provide for recovery of the regulatory asset within a period not exceeding three years.

(c) The carrying cost of the regulatory asset shall be in line with the State Bank Advance Rate (SBAR) for the tenure for which regulatory asset has been created.

(d) There shall not be a long gap in truing up of accounts of the Distribution Licensee so as to prevent the need for creation of the regulatory asset.

Part - VI

Wheeling and Retail Supply Business

(a) Power purchase cost shall be allocated to the Retail Supply business

(b) Operation and Maintenance expenses shall be segregated between wheeling and retail supply businesses in such manner as may be determined by the Commission;

(c) Majority of the capital expenditure related expenses, viz., depreciation, interest and return on equity, shall be included under the wheeling business;

Note. - The Retail Supply Business would require only a small component of the capital expenditure towards billing and collection activity.

Part - VII

Norms of Operation

(b) The Distribution Licensee shall maintain data on planned maintenance outages, load shedding, force majeure outages and tripping's.

(c) The incentive/disincentive shall exclude the circumstances when the actual supply differs from the contracted supply due to force majeure situations, weather conditions, extreme monsoon failure, station outages, etc. which are beyond the control of the Distribution Licensee.

(d) The Commission shall specify progressively increasing normative levels of Availability for Wheeling and Supply Business of the Distribution Licensee on the basis of past performance over the control period.

(e) The additional ARR shall be considered as +/- 0.2% of ARR for every percentage point increase/decrease in Availability vis-a-vis the normative levels of availability.

Part - VIII

Subsidy, Cross Subsidy and Tariff Design

(b) The Commission may clarify in the tariff order, post the declaration from the Government, the quantum of Government's subsidy as applicable to the fuel cost adjustment along with the range (%) of variable cost upto which the fuel adjustment cost shall not be passed to the consumers, category wise classification, mode of payment and schedule of payment etc.

(c) In case of no disbursement or delayed disbursement of subsidy by the Government, the licensee shall charge consumers as per the tariff schedule which is approved by the Commission without consideration of subsidy.

(d) In case the amount of subsidy by the Government is not utilized in full, the balance amount of subsidy amount shall be used for adjusting in ARR of the ensuing year(s)

(b) The Distribution Licensee shall compute the consumer category-wise cost of supply as per the methodology elaborated below.

(c) Allocation of Cost: The Cost to serve shall be allocated to the consumer categories in the following manner:

ii. Allocation of Energy Costs: Energy related costs of Distribution functions shall be allocated to consumer categories on the basis of ratio of electricity consumption of each consumer category to the total electricity consumption under the purview of the Distribution Licensee. Energy related costs of Power purchase shall be allocated to various tariff categories on the basis of block approach on merit order dispatch and incremental principle, where each tariff category shall be allocated the incremental (energy related) power purchase cost on the basis of their respective share in the incremental power purchase. For the purpose of operationalising the block approach and incremental principle, the Commission shall identify and notify a suitable year as the "base year".

iii. Allocation of Customer Costs: Customer related costs shall be allocated to consumer categories on the basis of the ratio of number of consumers in each category to total number of consumers under the purview of the Distribution Licensee.

(d) Summation of allocated Demand cost, Energy cost and Customer cost across functions shall be total Cost to serve for respective consumer categories. Cost to serve reduced by revenue from a consumer category shall give total subsidy for that category. Total subsidy for a consumer category reduced by Government subsidy, if any, shall be cross-subsidy for that consumer category.

(e) The consumers below poverty line who consume power below a specified level, say 30 units per month, shall receive a special support through cross subsidy.

(f) Cross-subsidy surcharge and additional surcharge in Open Access - (1) The amount received or to be received by the licensee on account of cross-subsidy surcharge and additional surcharge, as approved by the Commission from time to time in accordance with the Regulations specified by the Commission, shall be shown separately against the consumer category that is permitted open access as per the phasing plan.

(2) Cross-subsidy surcharge and additional surcharge shall be shown as revenue from the tariff from the consumer categories who have been permitted open access and such amount shall be utilized to meet the cross-subsidy requirements of subsidized categories and fixed costs of the Distribution Licensee arising out of his obligation to supply.

(g) Tariff Design - (1) The Commission shall be guided by the objective that the tariff progressively reflects the efficient and prudent cost of supply of electricity.

(2) After the costs have been allocated based on the method specified in clauses (c) and (d) above, tariffs for different consumer categories shall be designed with due regard to factors provided under section 62(3) of the Act.

(3) The time of day tariff would be structured across three time slabs to denote normal, peak and off-peak periods. The time-periods would vary according to different seasons of the year i.e. summer, winter and the monsoon season. The peak tariff would be 20%-30% higher than the normal tariff and the off-peak tariff would be priced 15%-20% lower than the normal tariff.

(4) The peak and off-peak hours during seasons shall be as notified by the State Load Dispatch Centers in advance.

(5) Time of Day tariff shall be introduced in a phased manner, wherein in phase 1 it would be compulsory for HT Consumers, in phase 2 - compulsory for LT consumers consuming more than 25 KW and in phase 3 compulsory for LT consumers consuming more than 10 KW.

Part - IX

Miscellaneous

(b) The other part of BERC (Terms and Conditions for determination of Tariff) Regulations, 2007 and its amendments shall remain applicable and where a difference is found in the Regulation relating to MYT of distribution licensee the provision of these Regulations shall prevail

(c) Notwithstanding such repeal, any proceedings before the Commission pertaining to the period prior to the commencement of the Control Period, including Petitions for True up of expenses, annual performance review, etc. shall be governed by BERC (Terms and Conditions of Determination of Tariff) Regulations 2007 and its amendments from time to time.

Format - 1

Tariff Petition for Financial Year ____________

Energy Sales

Note. - (1) Month-wise agriculture consumption data as per sample meters may also be supplied for different years separately for mono block and submersible agricultural pump sets.

(2) The information shall be given as required by the Commission to determine the tariff.

(3) Category of consumers in column 2 should be as per tariff structure proposed in the tariff petition.

(4) Slab-wise and connected load-wise consumption in those categories in which tariff rate is provided slab-wise shall be submitted separately.

Format - 2

Tariff Petition for Financial Year ____________

Distribution Losses

[In Percentage]

Format - 3

Tariff Petition for Financial Year ____________

Source-wise Capacity Allocation (in MW) and Power Purchase (in MU)

From Different Sources

Format - 4

Tariff Petition for Financial Year ____________

Energy Requirement and Energy Balance for FY _______

Format - 5

Tariff Petition for Financial Year ____________

Power Purchase Cost

Format - 6

Tariff Petition for Financial Year ____________

Name of the Distribution Licensee : _______

Employee Details

Format - 7

Tariff Petition for Financial Year ____________

Name of the Distribution Licensee :

Employee Cost

(Rs. in Cr.)

Note. - (i) No terminal benefits shall be paid before the date of reorganisation i.e. 01.11.2012.

(ii) In respect of continuing employees as on the date of reorganisation and newly appointed employees after reorganisation date the terminal benefits shall be allowed.

(iii) In respect of item 6, a brief description to be appended.

Format - 8

Tariff Petition for Financial Year ____________

Name of the Distribution Licensee :

Employees Productivity Parameters

Format - 9

Tariff Petition for Financial Year ____________

Name of the Distribution Licensee : _______

Repair and Maintenance Expenses

(Rs. in lakhs)

* Year-wise details of these charges may be provided with documentary evidence

Format - 10

Tariff Petition for Financial Year ____________

Name of the Distribution Licensee : _______

Administration and General Expenses

(Rs. in lakhs)

* Year-wise details of these charges may be provided with documentary evidence.

Format - 11

Name of the Distribution Licensee : _______

Investment Plan (Scheme-wise)

(Rs. in lakhs)

Note. - The amount of grants and loans shall be furnished separately scheme wise and funding agency wise.

Format - 12

Tariff Petition for Financial Year ____________

Name of the Distribution Licensee : _______

Investment Plan (Year-wise)

(Rs. in lakhs)

Note. - (i) Information for previous year to be given in columns 1 to 7

(ii) Information for the current year to be given in columns 1 to 5

(iii) Amount of grants and loans shall be furnished separately funding Agency wise and year wise.

Format - 13

Tariff Petition for Financial Year ____________

Name of the Distribution Licensee : _______

Fixed Assets

(Rs. in lakhs)