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1
ASSAM ELECTRICITY REGULATORY COMMISSION
(AERC)
TARIFF ORDER
February 15, 2021
True Up for FY 2019-20, APR for FY 2020-
21 and Revised ARR and Tariff for FY
2021-22
for
Assam Power Distribution Company
Limited (APDCL)
Petition No.s 17, 18 & 19/2020
ASSAM ELECTRICITY REGULATORY COMMISSION
Table of Contents
1 INTRODUCTION ........................................................................................................ 19
1.1 CONSTITUTION OF THE COMMISSION .............................................................................. 19
1.2 TARIFF RELATED FUNCTIONS OF THE COMMISSION ............................................................. 19
1.3 BACKGROUND ........................................................................................................... 20
1.4 MULTI YEAR TARIFF REGULATIONS, 2018 ....................................................................... 20
1.5 PROCEDURAL HISTORY ................................................................................................ 21
1.6 STATE ADVISORY COMMITTEE MEETING.......................................................................... 24
2 SUMMARY OF APDCL’S PETITION .............................................................................. 25
2.1 TRUE-UP FOR FY 2019-20 ........................................................................................... 25
2.2 ANNUAL PERFORMANCE REVIEW (APR) FOR FY 2020-21 .................................................. 26
2.3 AGGREGATE REVENUE REQUIREMENT FOR FY 2021-22 ...................................................... 27
2.4 PRAYERS OF APDCL ................................................................................................... 29
3 BRIEF SUMMARY OF STAKEHOLDERS’ COMMENTS, RESPONSE OF THE APDCL AND
COMMISSION’S VIEW ..................................................................................................... 31
ISSUE 10: INTEREST ON WORKING CAPITAL ............................................................................. 42
STAKEHOLDERS’ COMMENTS ................................................................................................. 42
ISSUE 11: RETURN ON EQUITY ............................................................................................... 43
ISSUE 12: REVENUE GRANTS/ SURPLUS ................................................................................... 44
ISSUE 16: INCREASE IN FIXED & ENERGY CHARGES ..................................................................... 47
ISSUE 17: POWER QUALITY .................................................................................................. 48
ISSUE 18: DETERMINATION OF TARIFF BASED ON VOLTAGE-WISE COST OF SUPPLY ............................. 49
ISSUE 19: TEMPORARY DISCONNECTION .................................................................................. 49
ISSUE 20: CAG REPORT & INDEPENDENT AUDITOR’S REPORT ...................................................... 50
STAKEHOLDERS’ COMMENTS ................................................................................................. 50
RESPONSE OF APDCL ......................................................................................................... 50
COMMISSION’S VIEW .......................................................................................................... 50
4 TRUING UP FOR FY 2019-20 ...................................................................................... 58
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 2
4.1 METHODOLOGY FOR TRUING UP ................................................................................... 58
4.2 ENERGY SALES .......................................................................................................... 59
4.3 DISTRIBUTION LOSS .................................................................................................... 61
4.4 ENERGY REQUIREMENT ............................................................................................... 63
4.5 POWER PURCHASE ..................................................................................................... 65
4.6 SHARING OF GAINS/(LOSSES) ON ACCOUNT OF EXCESS POWER PURCHASE COST DUE TO HIGHER
THAN APPROVED DISTRIBUTION LOSSES ................................................................................... 72
4.7 O&M EXPENSES ....................................................................................................... 72
4.8 SHARING OF EFFICIENCY GAINS/(LOSSES) ON ACCOUNT OF O&M EXPENSES ............................ 77
4.9 CAPITAL INVESTMENT & CAPITALISATION ........................................................................ 79
4.10 DEPRECIATION ........................................................................................................ 81
4.11 INTEREST AND FINANCE CHARGES ................................................................................ 85
4.12 INTEREST ON WORKING CAPITAL ................................................................................. 87
4.13 INTEREST ON CONSUMER SECURITY DEPOSIT .................................................................. 89
4.14 PROVISION FOR BAD & DOUBTFUL DEBTS ...................................................................... 90
4.15 NET PRIOR PERIOD INCOME/(EXPENSES) ....................................................................... 90
4.16 RETURN ON EQUITY .................................................................................................. 93
4.17 OTHER INCOME ....................................................................................................... 94
4.18 NON-TARIFF INCOME ................................................................................................ 95
4.19 REVENUE FROM SALE OF POWER ................................................................................. 97
4.20 REVENUE GRANT/SUBSIDY ......................................................................................... 98
4.21 ARR AND REVENUE GAP/(SURPLUS) AFTER TRUING UP OF FY 2019-20............................... 99
5 ANNUAL PERFORMANCE REVIEW (APR) FOR FY 2020-21 ......................................... 101
5.1 INTRODUCTION ....................................................................................................... 101
5.2 ENERGY SALES ........................................................................................................ 102
5.3 DISTRIBUTION LOSS .................................................................................................. 104
5.4 ENERGY BALANCE .................................................................................................... 105
5.5 POWER PURCHASE ................................................................................................... 107
5.6 OPERATION AND MAINTENANCE (O&M) EXPENSES......................................................... 115
5.7 CAPITAL INVESTMENT AND FINANCING OF CAPITAL INVESTMENT ......................................... 119
5.8 DEPRECIATION ........................................................................................................ 120
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 3
5.9 INTEREST ON LOAN CAPITAL ....................................................................................... 125
5.10 INTEREST ON WORKING CAPITAL ............................................................................... 127
5.11 INTEREST ON CONSUMERS’ SECURITY DEPOSIT .............................................................. 128
5.12 PROVISION FOR BAD AND DOUBTFUL DEBTS ................................................................ 128
5.13 RETURN ON EQUITY ................................................................................................ 129
5.14 OTHER INCOME ..................................................................................................... 130
5.15 NON-TARIFF INCOME .............................................................................................. 132
5.16 REVENUE FROM SALE OF ELECTRICITY AT EXISTING TARIFF ................................................ 134
5.17 OTHER SUBSIDY FROM GOA ..................................................................................... 134
5.18 ARR AND REVENUE GAP/(SURPLUS) .......................................................................... 135
6 ARR FOR FY 2021-22 ............................................................................................... 137
6.1 INTRODUCTION ....................................................................................................... 137
6.2 ENERGY SALES ........................................................................................................ 137
6.3 CATEGORY-WISE ENERGY SALES .................................................................................. 137
6.4 DISTRIBUTION LOSS .................................................................................................. 140
6.5 ENERGY BALANCE .................................................................................................... 141
6.6 POWER PURCHASE ................................................................................................... 142
6.7 OPERATION AND MAINTENANCE (O&M) EXPENSES......................................................... 150
6.8 CAPITAL EXPENDITURE AND CAPITALISATION .................................................................. 154
6.9 DEPRECIATION ........................................................................................................ 155
6.10 INTEREST & FINANCE CHARGES ................................................................................. 159
6.11 INTEREST ON WORKING CAPITAL ............................................................................... 160
6.12 INTEREST ON CONSUMERS’ SECURITY DEPOSIT .............................................................. 161
6.13 PROVISION FOR BAD & DOUBTFUL DEBTS .................................................................... 162
6.14 RETURN ON EQUITY ................................................................................................ 162
6.15 NON-TARIFF INCOME .............................................................................................. 163
6.16 OTHER INCOME ..................................................................................................... 165
6.17 REVENUE FROM SALE OF POWER AT EXISTING TARIFF ..................................................... 166
6.18 ARR FOR FY 2021-22 ............................................................................................ 166
7 CUMULATIVE REVENUE GAP TILL FY 2021-22 AND TARIFF FOR FY 2021-22 ............... 168
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 4
7.1 CUMULATIVE REVENUE GAP ....................................................................................... 168
7.2 TARIFF PHILOSOPHY AND DESIGN FOR FY 2021-22 ......................................................... 171
7.3 CATEGORY-WISE CROSS-SUBSIDY ................................................................................. 176
7.4 FUEL PRICE AND POWER PURCHASE ADJUSTMENT CHARGES (FPPPA).................................. 177
8 WHEELING CHARGES AND CROSS-SUBSIDY SURCHARGE .......................................... 179
8.1 INTRODUCTION ....................................................................................................... 179
8.2 ALLOCATION MATRIX ............................................................................................... 179
8.3 WHEELING CHARGES ................................................................................................ 181
8.4 APPLICABLE WHEELING LOSSES ................................................................................... 182
8.5 CROSS-SUBSIDY SURCHARGE (CSS) .............................................................................. 182
8.6 APPLICABILITY OF TARIFF ........................................................................................... 183
9 DIRECTIVES ............................................................................................................ 184
10 TARIFF SCHEDULE ................................................................................................. 192
11 ANNEXURE 1: MINUTES OF THE 27TH MEETING OF THE STATE ADVISORY COMMITTEE
205
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 5
LIST OF TABLES
Table 1:True-up for FY 2019-20 as submitted by APDCL (Rs. Crore)...................... 25
Table 2: APR for FY 2020-21 as submitted by APDCL (Rs. Crore) .......................... 26
Table 3: ARR for 2021-22 as submitted by APDCL (Rs. Crore) ............................... 27
Table 4: Cumulative Revenue Gap till FY 2021-22 as proposed by APDCL (Rs. Crore)
................................................................................................................................ 27
Table 5: ARR for FY 2021-22 as proposed by APDCL (Rs. Crore) .......................... 28
Table 6: ARR Proposed for Recovery in FY 2021-22 (Rs. Crore) ............................ 29
Table 7: Energy Sales for FY 2019-20 as submitted by APDCL (MU) ..................... 59
Table 8: Energy Sales for FY 2019-20 approved by the Commission (MU) ............. 60
Table 9: Energy Requirement for True-Up for FY 2019-20 as submitted by APDCL
(MU) ........................................................................................................................ 63
Table 10: Energy Requirement approved by the Commission after True-Up for FY
2019-20 (MU) .......................................................................................................... 64
Table 11: Power Purchase for FY 2019-20 as submitted by APDCL (MU) ............... 66
Table 12: Power Purchase approved by the Commission after True-Up for FY 2019-
20 ............................................................................................................................ 69
Table 13: Sharing of Efficiency Gain/(Loss) on account of Distribution Losses approved
by the Commission (Rs. Crore)................................................................................ 72
Table 14: O&M Expenses for FY 2019-20 as submitted by APDCL (Rs. Crore) ...... 73
Table 15: Normative Employee Expenses for FY 2019-20 as submitted by APDCL (Rs.
Crore) ...................................................................................................................... 73
Table 16: Normative R&M Expenses for FY 2019-20 as submitted by APDCL (Rs.
Crore) ...................................................................................................................... 74
Table 17: Normative A&G Expenses for FY 2019-20 as submitted by APDCL (Rs.
Crore) ...................................................................................................................... 75
Table 18: Approved Employee Expenses for FY 2019-20 (Rs. Crore) ..................... 75
Table 19: Approved R&M Expenses for FY 2019-20 (Rs. Crore) ............................. 76
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 6
Table 20: Approved A&G Expenses for FY 2019-20 (Rs. Crore) ............................. 77
Table 21: Normative O&M Expenses approved by Commission for FY 2019-20 (Rs.
Crore) ...................................................................................................................... 77
Table 22: Sharing of gains or losses for O&M Expenses for FY 2019-20 as submitted
by APDCL (Rs. Crore) ............................................................................................. 78
Table 23: Sharing of gains/(losses) for O&M Expenses approved by the Commission
for FY 2019-20 (Rs. Crore) ...................................................................................... 78
Table 24: Capital Expenditure and Capitalization submitted by APDCL (Rs. Crore) 79
Table 25: Capital Expenditure and capitalisation approved by the Commission (Rs.
Crore) ...................................................................................................................... 80
Table 26: Funding of Capitalised Works approved by the Commission (Rs. Crore) . 80
Table 27: Depreciation Calculation for FY 2019-20 as submitted by APDCL (Rs. Crore)
................................................................................................................................ 82
Table 28: Depreciation Claimed by APDCL (Rs. Crore) ........................................... 83
Table 29: Depreciation approved for FY 2019-20 (Rs. Crore) .................................. 85
Table 30: Normative Interest as submitted by APDCL for FY 2019-20 (Rs. Crore) .. 86
Table 31: Approved Interest & Financing Charges for FY 2019-20 (Rs. Crore) ........ 87
Table 32: IoWC as submitted by APDCL for FY 2019-20 (Rs. Crore) ...................... 87
Table 33: IoWC approved by the Commission for FY 2019-20 (Rs. Crore) .............. 89
Table 34: Interest on CSD approved for FY 2019-20 (Rs. Crore)............................. 89
Table 35: Provision for Bad & Doubtful Debts as submitted by APDCL (Rs. Crore) . 90
Table 36: Provision for Bad & Doubtful Debts approved by the Commission (Rs. Crore)
................................................................................................................................ 90
Table 37: Net Prior Period Income/(Expenses) claimed by APDCL for FY 2019-20 (Rs.
Crore) ...................................................................................................................... 91
Table 38: Prior Period Income/(Expenses) approved by the Commission for FY 2019-
20 (Rs. Crore) .......................................................................................................... 92
Table 39: RoE as submitted by APDCL (Rs. Crore)................................................. 93
Table 40: RoE approved by the Commission for FY 2019-20 (Rs. Crore) ................ 94
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 7
Table 41: Other Income submitted by APDCL for FY 2019-20 (Rs. Crore) .............. 94
Table 42: Other Income approved by the Commission for FY 2019-20 (Rs. Crore) . 95
Table 43: Non-Tariff Income submitted by APDCL for FY 2019-20 (Rs. Crore) ....... 96
Table 44: Non-Tariff Income approved for FY 2019-20 (Rs. Crore).................. 97
Table 45: ARR & Revenue Gap/(Surplus) approved in the Truing up for FY 2019-20
(Rs. Crore) .............................................................................................................. 99
Table 46: Category-wise Energy Sales Projected by APDCL for FY 2020-21 (MU) 102
Table 47: Energy Sales considered by the Commission for FY 2020-21 (MU) ....... 103
Table 48: Distribution Losses considered by the Commission for FY 2020-21 ....... 105
Table 49: Energy Balance for FY 2020-21 as projected by APDCL (MU) .............. 106
Table 50: Energy Balance for FY 2020-21 considered by the Commission (MU) ... 106
Table 51: Power Purchase for FY 2020-21 as submitted by APDCL (Rs. Crore) ... 109
Table 52: Power Purchase Quantum and Cost considered by the Commission for the
FY 2020-21 ........................................................................................................... 112
Table 53: Employee Expenses projected for FY 2020-21 by APDCL (Rs. Crore) .. 115
Table 54: R&M Expenses for FY 2020-21 as submitted by APDCL (Rs. Crore) ..... 115
Table 55: A&G Expenses for FY 2020-21 as submitted by APDCL (Rs. Crore) ..... 116
Table 56: Employee Expenses considered for FY 2020-21(Rs. Crore) .................. 117
Table 57: R&M Expenses considered for FY 2020-21 (Rs. Crore) ......................... 118
Table 58: A&G Expenses considered for FY 2020-21 (Rs. Crore) ......................... 119
Table 59: Proposed financing of Capitalization for FY 2020-21 (Rs. Crore) ........... 119
Table 60: Actual Capitalization for FY 2017-18 to FY 2019-20 (Rs. Crore) ............ 119
Table 61: Capitalization and Funding for FY 2020-21 (Rs. Crore) .......................... 120
Table 62: Depreciation calculation for FY 2020-21 as submitted by APDCL (Rs. Crore)
.............................................................................................................................. 122
Table 63: Depreciation claimed by APDCL for FY 2020-21 (Rs. Crore) ................. 123
Table 64: Depreciation considered for FY 2020-21 (Rs. Crore) ............................. 124
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 8
Table 65: Interest Expenses as submitted by APDCL for FY 2020-21 (Rs. Crore) . 125
Table 66: Interest on Loan Capital considered for FY 2020-21 (Rs. Crore) ............ 127
Table 67 : IoWC considered by the Commission for FY 2020-21 (Rs. Crore) ........ 128
Table 68: Equity Addition allowed by the Commission due to Conversion of Grant to
Equity in FY 2020-21 (Rs. Crore) ........................................................................... 130
Table 69: Return on Equity considered by the Commission for FY 2020-21 (Rs. Crore)
.............................................................................................................................. 130
Table 70: Other Income as submitted by APDCL for FY 2020-21 (Rs. Crore) ....... 131
Table 71: Other Income considered for FY 2020-21 (Rs. Crore) ............................ 132
Table 72: Non-Tariff Income as submitted by APDCL for FY 2020-21 (Rs. Crore) . 132
Table 73: Non-Tariff Income as considered by Commission for FY 2020-21 (Rs. Crore)
.............................................................................................................................. 133
Table 74 :ARR & Revenue Gap/ (Surplus) considered by the Commission for FY 2020-
21 (Rs. Crore) ........................................................................................................ 135
Table 75: Category-wise Energy Sales Projected by APDCL for FY 2021-22 (MU) 138
Table 76: Growth rates considered for various categories for FY 2021-22 ............. 139
Table 77: Category-wise Energy Sales approved for FY 2021-22 (MU) ................. 140
Table 78: Energy Balance for FY 2021-22 as Projected by APDCL (MU) .............. 141
Table 79: Energy Balance for FY 2021-22 approved by the Commission (MU) ..... 142
Table 80: Power Purchase Quantum and Cost submitted by APDCL for FY 2021-22
(Rs. Crore) ............................................................................................................ 144
Table 81: Power Purchase Quantum and Cost approved for FY 2021-22 .............. 147
Table 82: Employee Expenses Projected by APDCL for FY 2021-22 (Rs Crore) ... 150
Table 83: R&M Expenses Projected by APDCL for FY 2021-22 (Rs Crore) ........... 151
Table 84: A&G Expenses Projected by APDCL for FY 2021-22 (Rs. Crore) .......... 151
Table 85: Employee Expenses Approved for FY 2021-22 (Rs. Crore) ................... 152
Table 86: R&M Expenses Approved for FY 2021-22 (Rs. Crore) ........................... 153
Table 87: A&G Expenses Approved for FY 2021-22 (Rs. Crore) ........................... 153
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 9
Table 88: Financing of the Projected Capitalisation for FY 2021-22 (Rs Crore) ..... 154
Table 89: Capitalisation and proposed funding approved for FY 2021-22 (Rs Crore)
.............................................................................................................................. 155
Table 90: Depreciation calculation of FY 2021-22 as submitted by APDCL (Rs. Crore)
.............................................................................................................................. 156
Table 91: Depreciation claimed by APDCL for FY 2021-22 (Rs. Crore) ................. 157
Table 92: Depreciation approved for FY 2021-22 (Rs. Crore) ................................ 158
Table 93: Interest on Loan Capital as submitted by APDCL (Rs. Crore) ................ 159
Table 94: Approved Interest Expenses for FY 2021-22 (Rs. Crore) ....................... 160
Table 95: Interest on Working Capital submitted by APDCL (Rs Crore) ................. 160
Table 96: IoWC approved by the Commission for FY 2021-22 (Rs. Crore) ............ 161
Table 97: Return on Equity approved by the Commission (Rs. Crore) ................... 163
Table 98: Non-Tariff Income Projected by APDCL (Rs. Crore) .............................. 163
Table 99: Non-Tariff Income approved by the Commission for FY 2021-22 (Rs. Crore)
.............................................................................................................................. 164
Table 100: Other Income as submitted by APDCL (Rs. Crore) .............................. 165
Table 101: Other Income as approved by the Commission for FY 2021-22 (Rs. Crore)
.............................................................................................................................. 166
Table 102: ARR of APDCL for FY 2021-22 as approved by the Commission (Rs. Crore)
.............................................................................................................................. 167
Table 103: Cumulative Revenue Gap till FY 2021-22 as submitted by APDCL (Rs.
Crore) .................................................................................................................... 168
Table 104: ARR for FY 2021-22 as submitted by APDCL (Rs. Crore).................... 168
Table 105: ARR for FY 2021-22 as submitted by APDCL (Rs. Crore).................... 169
Table 106: Cumulative Revenue Gap/(Surplus) till FY 2021-22 as approved by the
Commission (Rs. Crore) ........................................................................................ 170
Table 107: ACoS Projected by APDCL for FY 2021-22 ......................................... 171
Table 107: ACoS approved by the Commission for FY 2021-22 ............................ 173
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 10
Table 108: Full Cost Tariff approved by the Commission for FY 2021-22 .............. 174
Table 109: Category-wise Cross-Subsidy approved for FY 2021-22 ...................... 176
Table 110: Separation of ARR for Wires and Retail Supply Business for FY 2021-22
as submitted by APDCL (Rs. Crore) ...................................................................... 179
Table 111: Allocation Matrix for Separation of ARR for Wires Business and Retail
Supply Business for FY 2021-22 ........................................................................... 180
Table 112: Separation of ARR for Wires Business and Retail Supply Business for FY
2021-22 (Rs. crore) ............................................................................................... 180
Table 113: Wheeling Charges submitted by APDCL for FY 2021-22 ..................... 181
Table 114: Wheeling Charges approved by the Commission for FY 2021-22 ........ 181
Table 115: Wheeling Losses approved by the Commission for FY 2021-22 .......... 182
Table 116: Category-wise CSS submitted by APDCL for FY 2021-22 ................... 182
Table 117: Category-wise CSS for FY 2021-22 as approved by the Commission .. 183
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 11
List of Abbreviations
A&G Administrative & General
ABC Aerial Bunched Conductors
ABITA Assam Branch of Indian Tea Association
ABT Availability Based Tariff
ABP Average Basic Pay
ABR Average Billing Rate
ACoS Average Cost of Supply
ADB Asian Development Bank
AEGCL Assam Electricity Grid Corporation Limited
AERC Assam Electricity Regulatory Commission
APDCL Assam Power Distribution Company Limited
APDRP Accelerated Power Development Reforms Programme
APGCL Assam Power Generation Corporation Limited
APM Administered Pricing Mechanism
APR Annual Performance Review
ARR Aggregate Revenue Requirement
APTEL Appellate Tribunal for Electricity
ASEB Assam State Electricity Board
AT&C Aggregate Technical and Commercial
BPL Below Poverty Line
CAC Consumer Advocacy Cell
CAEDCL Central Assam Electricity Distribution Company Limited
CAGR Compounded Annual Growth Rate
CAIDI Customer Average Interruption Duration Index
CAIFI Customer Average Interruption Frequency Index
CBDF Collection Based Distribution Franchisee
CEA Central Electricity Authority
CERC Central Electricity Regulatory Commission
CGRF Consumer Grievance Redressal Forum
CGS Central Generating Station
COD Date of Commercial Operation
CPC Central Pay Commission
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 12
CPI Consumer Price Index
CPSU Central Public Sector Utility
CSD Consumer Security Deposit
CSS Cross-subsidy Surcharge
CTU Central Transmission Utility
CWIP Capital Work In Progress
DA Dearness Allowance
D/C Double Circuit
DD Demand Draft
DDUGJY Deendayal Upadhyay Gram Jyoti Yojana
DEEP Discovery of Efficient Electricity Price
DELP Domestic Efficient Lighting Programme
DISCOM Distribution Company
DMS Distribution Management System
DPR Detailed Project Report
DSM Demand Side Management
DT/DTR Distribution Transformer
EA, 2003 The Electricity Act, 2003
EE Energy Efficiency
EHV Extra High Voltage
ERP Enterprise Resource Planning
ERS Emergency Restoration System
FINER Federation of Industry & Commerce of North Eastern Region
FPPPA Fuel Price and Power Purchase Adjustment
FY Financial Year
GFA Gross Fixed Assets
GoA Government of Assam
GoI Government of India
GPF General Provident Fund
HEP Hydro Electric Project
HH Household
HP Horse Power
HT High Tension
HV High Voltage
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 13
HVCMS High Value Consumer Management System
IEX Indian Energy Exchange
IOCL Indian Oil Corporation Limited
IPDS Integrated Power Development Scheme
IT Information Technology
IWC/IoWC Interest on Working Capital
JNNSM Jawaharlal Nehru National Solar Mission
kV kilo Volt
kVA kilo Volt Ampere
kW kilo Watt
kWh kilo Watt Hour
LAEDCL Lower Assam Electricity Distribution Company Limited
LED Light Emitting Diode
LOA Letter of Award
LT Low Tension
LTC Leave Travel Concession
LV Low Voltage
MAT Minimum Alternate Tax
MCLR Marginal Cost of Funds Based Lending Rates
MCP Market Clearing Price
MIS Management Information System
MNRE Ministry of New and Renewable Energy
MoP Ministry of Power
MOU Memorandum of Understanding
MRI Meter Reading Instruments
MU Million Unit
MW Mega Watt
MYT Multi-Year Tariff
NEEPCO North Eastern Electric Power Corporation Limited
NEP National Electricity Policy
NERPSIP North Eastern Region Power System Improvement Project
NESSIA North Eastern Small Scale Industries Association
NETA North Eastern Tea Association
NHPC NHPC Ltd.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 14
NLCPR Non-lapsable Central Pool of Resources
NTPC National Thermal Power Corporation Ltd.
O&M Operation and Maintenance
OA Open Access
OPGW Optical Ground Wire
PFA Power for All
PFC Power Finance Corporation Limited
PGCIL Power Grid Corporation of India Limited
PLF Plant Load Factor
PTCIL PTC Indian Limited
R&M Repairs and Maintenance
RAPDRP Restructured Accelerated Power Development & Reforms
Programme
REC Renewable Energy Certificate
RGGVY Rajiv Gandhi Grameen Vidyutikaran Yojana
ROE Return on Equity
ROW Right of Way
RPO Renewable Purchase Obligation
Rs. Rupees
SAC State Advisory Committee
SAIDI System Average Interruption Duration Index
SAIFI System Average Interruption Frequency Index
SAUBHAGYA Pradhan Mantri Sahaj Bijli Har Ghar Yojana
SBI PLR State Bank of India Prime Lending Rate
S/C Single Circuit
SCED Security Constrained Economic Despatch
SECI Solar Energy Corporation of India Limited
SHEP Small Hydro Electric Project
SOP Standards of Performance
SPV Special Purpose Vehicle
STU State Transmission Utility
SLDC State Load Dispatch Centre
TBCB Tariff Based Competitive Bidding
TOD Time of Day
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 15
TVS Technical Validation Session
UAEDCL Upper Assam Electricity Distribution Company Limited
UI Unscheduled Interchange
UDAY Ujwal DISCOM Assurance Yojana
VCoS Voltage-wise Cost of Supply
WB The World Bank
WPI Wholesale Price Index
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 16
ASSAM ELECTRICITY REGULATORY COMMISSION
Guwahati
Present
Shri K. S. Krishna, Chairperson
Smt. B. Borthakur, Member
Shri S. N. Kalita, Member
Petition No. 17, 18 & 19/2020
Assam Power Distribution Company Limited (APDCL) - Petitioner
ORDER
(Passed on February 15, 2021)
(1) APDCL filed Petitions for approval of Truing up for FY 2019-20, Annual
Performance Review (APR) for FY 2020-21, revised Aggregate Revenue
Requirement (ARR) for FY 2021-22 and determination of Tariff for FY 2021-22
as per MYT Regulations, 2018 on November 28, 2020. The same were
registered as Petition Nos. 17, 18 & 19/2020.
(2) The Commission observed that there were several inconsistencies in the
Petition. The Commission raised queries in order to clarify the discrepancies,
inconsistencies, and data gaps. The Commission sought additional data and
clarifications on the Petitions vide letters dated December 10, 2020 and January
21, 2021.
(3) The Commission held an Admissibility Hearing on December 14, 2020 and
admitted the Petitions (Petition No.17, 18 & 19/2020) vide Order dated December
14, 2020, with direction to furnish the additional data and clarifications, as sought
vide letter dated December 10, 2020, by January 05, 2021.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 17
(4) On admission of the Petitions (Petition No.17, 18 & 19/2020), in accordance with
Section 64 of the Electricity Act 2003, the Commission directed APDCL to publish
a summary of the ARR and Tariff filings in local dailies to facilitate due public
participation.
(5) Accordingly, a Public Notice was issued by APDCL inviting
objections/suggestions from objectors to be submitted on or before January 11,
2021. The notice was published in five (5) leading newspapers and short notice
was published in five (5) leading newspapers of the State, as shown in the table
below:
Date Name of Newspaper Content Published
17.12.2020 The Assam Tribune Public Notice in English
Dainik Jugasankhya (Bangla) Public Notice in English
Purbanchal Prahari (Hindi) Public Notice in English
Amar Asom Public Notice in Assamese
Dainik Janambhumi Public Notice in Assamese
18.12.2020 Asomiya Pratidin Short Notice in English
The Times of India Short Notice in English
The Sentinel Short Notice in English
Bodosa Short Notice in English
Thekar Short Notice in English
(6) A copy of the summary of the Petitions and other relevant documents were also
directed to be made available to the consumers and other interested Parties at
the office of the Managing Director of APDCL, and offices of the Deputy General
Manager of each circle of APDCL. A copy of the Petition was also made available
on the websites of the Commission and APDCL.
(7) The Commission decided to extend the last date of submission of
objections/comments on Tariff Petitions up to January 19, 2021. The notice was
published in one leading Assamese and one leading English newspaper on
January 07, 2021, as shown in the Table below:
Date Name of Newspaper
07.01.2021 The Times of India
07.01.2021 Asomiya Pratidin
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 18
(8) In response to the Commission’s letter dated December 10, 2020, APDCL
submitted their replies to data gaps on January 5, 2021.
(9) A Technical Validation Session was also held on January 20, 2021 at the
conference room of the Commission.
(10) The Petitions were also discussed in the 27th meeting of the State Advisory
Committee (SAC) (constituted under Section 87 of the Electricity Act, 2003) held
on December 19, 2020 at Bidyut Niyamak Bhawan, Six Mile, Guwahati.
(11) The Commission received suggestions and objections from six (6) stakeholders
on the Petitions filed by APDCL. The objectors were notified about the place,
date and time of Hearing, to enable them to take part in the Hearing. A notice
was also published in Newspapers inviting participation from the general public
as well as the Respondents. The Hearing was held at Bidyut Niyamak Bhawan,
Six Mile, Guwahati on February 6, 2021 as scheduled. All
stakeholders/respondents who participated in the Hearing were given the
opportunity to express their views on the Petitions. The details are discussed in
the Chapters attached with this Order.
(12) The Commission, now in exercise of its powers vested under Sections 61, 62,
86 and 181 of the Electricity Act, 2003 and all other powers enabling it in this
behalf and taking into consideration the submissions made by the Petitioner,
objections and suggestions received from objectors and all other relevant
materials on record, has carried out the True-up for FY 2019-20, APR for FY
2020-21 and approval of ARR and determination of distribution and retail supply
tariff for FY 2021-22, as detailed in the Chapters attached with this Order.
(13) The Commission directs APDCL to publish a Public Notice intimating the revised
distribution and retail supply tariff before the implementation of this Order in
English and Vernacular newspapers and on the website of APDCL.
(14) The approved Retail Supply Tariffs, Wheeling Charges and Cross-Subsidy
Surcharge (CSS) for FY 2021-22 shall be effective from April 1, 2021 and shall
continue until replaced by any subsequent Order of the Commission.
(15) Accordingly, the Petition No.s 17, 18 and 19/2020 stand disposed of.
Sd/- Sd/- Sd/-
(S.N. Kalita)
Member, AERC
(B. Borthakur)
Member, AERC
(K.S. Krishna)
Chairperson, AERC
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 19
1 INTRODUCTION
1.1 Constitution of the Commission
1.1.1 The Assam Electricity Regulatory Commission (hereinafter referred to as the AERC or
the Commission) was established under the Electricity Regulatory Commissions Act,
1998 (14 of 1998) on February 28, 2001. The first proviso of Section 82(1) of the
Electricity Act, 2003 (hereinafter referred as the Act or the EA, 2003) has ensured
continuity of the Commission under the Electricity Act, 2003.
1.1.2 The Commission is mandated to exercise the powers and functions conferred under
Section 181 of the Electricity Act, 2003 (36 of 2003) and to exercise the functions
conferred on it under Section 86 of the Act from June 10, 2003.
1.2 Tariff related Functions of the Commission
1.2.1 Under Section 86 of the Act, the Commission has the following tariff related functions:
a) To determine the tariff for electricity, wholesale, bulk or retail, as the case may be;
b) To regulate power purchase and procurement process of the distribution utilities
including the price at which the power shall be procured from the generating
companies, generating stations or from other sources for transmission, sale,
distribution and supply in the State;
c) To promote competition, efficiency and economy in the activities of the electricity
industry to achieve the objects and purposes of this Act.
1.2.2 Under Section 61 of the Act in the determination of tariffs, the Commission is to be
guided by the following:
a) The principles and methodologies specified by the Central Commission for
determination of the tariff applicable to generating companies and transmission
licensees;
b) The electricity generation, transmission, distribution and supply are conducted on
commercial principles;
c) Factors that would encourage efficiency, economical use of the resources, good
performance, optimum investments, and other matters which the State
Commission considers appropriate for the purpose of this Act;
d) The interests of the consumers are safeguarded and at the same time, the
consumers pay for the use of electricity in a reasonable manner based on the cost
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 20
of supply;
e) The tariff progressively reflects the cost of supply of electricity at an adequate and
improving level of efficiency and also gradually reduces cross subsidies;
f) The National Power Plans formulated by the Central Government including the
National Electricity Policy and Tariff Policy.
1.3 Background
1.3.1 As a result of notifications by the Government of Assam, vide Memo No.
PEL151/2003/Pt./165 dated December 10, 2004, Notification No PEL.41/2006/199
dated May 13, 2009 and in accordance with the Assam State Reform (Transfer and
merger of Distribution Functions and undertakings) Scheme, 2009 and Certificate of
Incorporation dated October 23, 2009, the present Distribution Company, i.e., Assam
Power Distribution Company Limited (APDCL) got formed.
1.3.2 Presently, APDCL is undertaking all the functions as a Distribution Company within the
State of Assam.
1.4 Multi Year Tariff Regulations, 2018
1.4.1 The Commission, in exercise of the powers conferred under Section 61 read with
Section 181(2) (zd) of the Act, notified the AERC (Terms and Conditions for
determination of Multi Year Tariff) Regulations, 2018 (herein after referred as “MYT
Regulations, 2018”) on July 17, 2018. These Regulations are applicable for
determination of Tariff for Generation, Transmission, SLDC, Wheeling and Retail
Supply for the Control Period of three financial years from April 1, 2019 onwards up to
March 31, 2022. These Regulations are applicable to all existing and future Generating
Companies, Transmission Licensees and Distribution Licensees within the State of
Assam.
1.4.2 Regulation 4.2 of the MYT Regulations, 2018, specifies the MYT framework, as
reproduced below:
“4.2 The Multi-Year Tariff framework shall be based on the following elements, for
calculation of Aggregate Revenue Requirement and expected revenue from tariff and
charges for Generating Companies, Transmission Licensee, SLDC, Distribution
Wheeling Business and Retail Supply Business:
…
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 21
(vi) Annual Performance review vis-à-vis the approved forecast and categorization of
variation in performance as those caused by factors beyond the control of the applicant
(uncontrollable items) shall be undertaken by the Commission;
(vii) True up of the past years based on audited annual accounts of the licensees and
the Generation companies.
(viii) The mechanism for pass-through of approved gains or losses on account of
uncontrollable items as specified by the Commission in these Regulations;
(ix) The mechanism for sharing of approved gains or losses arising out of controllable
items as specified by the Commission in these Regulations;
(x) Tariff determination for Generating Companies, SLDC, Transmission Licensee and
Distribution Wheeling Business and Retail Supply Business, for each financial year
within the Control period based on the approved forecast. The tariff shall be reviewed
at the time of the true-up and annual performance review.
(xi) There will be no true-up of the controllable items except on account of Force
Majeure events or on account of variations attributable to uncontrollable items. The
variations in the controllable items, as defined in regulation 10, over and above the
norms specified will be governed by incentive and penalty framework specified in these
regulations.
(xii) The tariff determined by the Commission and the directions given in the MYT order
shall be the quid pro quo and mutually inclusive. The tariff determined shall, within the
time period specified in the order, be subject to the compliance of the directions by the
generating company and the licensees to the satisfaction of the Commission. Non-
compliance of directions given in the tariff order may also lead to invocation of the
provisions of section 142 of the Act.
(xiii) The tariff determined by the Commission shall continue to operate till it is modified
or revised by the Commission.”
1.5 Procedural History
1.5.1 In accordance with Regulation 18 of the MYT Regulations, 2018, APDCL is required
to file an application for true-up for previous year, i.e., FY 2019-20, APR of current
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 22
year, i.e., FY 2020-21, and revised ARR and Tariff for ensuing year, i.e., FY 2021-22,
by 30th November of each year of the Control Period. APDCL filed its Petitions for
approval of Truing-Up of FY 2019-20, APR of FY 2020-21 and ARR & Tariff for FY
2021-22 on November 28, 2020, in accordance with the MYT Regulations, 2018. The
same were registered as Petition No.s 17, 18 & 19/2020.
1.5.2 The Commission observed that there were several inconsistencies in the Petition. The
Commission raised queries in order to clarify the discrepancies, inconsistencies, and
data gaps. The Commission sought additional data and clarifications on the Petitions
vide letters dated December 10, 2020 and January 21, 2021. As the regulatory process
has to be completed within the stipulated time, the Commission has relied upon data
considered to be more accurate/reliable within the multiple conflicting data made
available to the Commission and has made appropriate assumptions wherever
necessary.
1.5.3 The Commission held an Admissibility Hearing on December 14, 2020, and admitted
the Petitions (Petition No.s 17, 18 & 19/2020) vide Order dated December 14, 2020 .
1.5.4 On admission of the Petitions (Petition No.s 17, 18 & 19/2020), in accordance with
Section 64 of the Electricity Act 2003, the Commission directed APDCL to publish a
summary of the ARR and Tariff filings in local dailies to facilitate due public
participation.
1.5.5 Further, APDCL was directed to publish advertisement in few other newspapers stating
that the copy of the Petition is made available on their website. A copy of the summary
of the Petition and other relevant documents were also directed to make available to
the consumers and other interested Parties at the office of the Managing Director of
APDCL, and offices of the Deputy General Manager of each circle of APDCL. A copy
of the Petition was also made available on the websites of the Commission and
APDCL.
1.5.6 Accordingly, a Public Notice was issued by APDCL inviting objections/suggestions
from objectors to be submitted on or before January 11, 2021. The notice was
published in five (5) leading newspapers of the State on December 17, 2020, and short
notice was published in five (5) of the leading newspapers of the State on December
18, 2020, as shown in the Table below:
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 23
Date Name of Newspaper Content Published
17.12.2020 The Assam Tribune Public Notice in English
Dainik Jugasankhya (Bangla) Public Notice in English
Purbanchal Prahari (Hindi) Public Notice in English
Amar Asom Public Notice in Assamese
Dainik Janambhumi Public Notice in Assamese
18.12.2020 Asomiya Pratidin Short Notice in English
The Times of India Short Notice in English
The Sentinel Short Notice in English
Bodosa Short Notice in English
Thekar Short Notice in English
1.5.7 The Commission decided to extend the last date of submission of
objections/comments on Tariff petition filed by APDCL up to January 19, 2021.The
notice was published in one leading Assamese and one leading English newspaper on
January 07, 2021, as shown in the Table below:
Date Name of Newspaper
07.01.2021 The Times of India
07.01.2021 Asomiya Pratidin
1.5.8 In response to the Commission’s letter dated December 10, 2020, APDCL submitted
their replies to data gaps on January 5, 2021.
1.5.9 The Commission received suggestions and objections from six (6) stakeholders on the
Petitions filed by APDCL. APDCL was asked to submit its responses to the
submissions of the stakeholders. The stakeholders were notified about the place, date
and time of Hearing, to enable them to take part in the Hearing. A Newspaper notice
was also published inviting participation from the general public as well as the
Respondents. The Hearing was held at Bidyut Niyamak Bhawan, Six Mile, Guwahati
on February 6, 2021 as scheduled. All stakeholders/respondents who participated in
the Hearing were given the opportunity to express their views on the Petitions.
1.5.10 All the written representations submitted to the Commission and oral submissions
made before the Commission in the Hearing and the responses of APDCL have been
carefully considered while issuing this Tariff Order. The major issues raised by different
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 24
consumers and consumer groups along with the response of APDCL, and views of the
Commission are elaborated in Chapter 3 of this Order.
1.6 State Advisory Committee Meeting
1.6.1 The 27th meeting of the SAC was convened on December 19, 2020 and members were
briefed on the Tariff Petition of APDCL. The minutes of the SAC meeting are appended
to this Order as Annexure 1.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 25
2 Summary of APDCL’s Petition
2.1 True-up for FY 2019-20
2.1.1 APDCL submitted the True-up Petition for FY 2019-20 based on the Statement of
Accounts duly audited by the Statutory Auditor. The summary of the ARR and Revenue
Gap/(Surplus) claimed by APDCL for FY 2019-20 is shown in the following Table:
Table 1:True-up for FY 2019-20 as submitted by APDCL (Rs. Crore)
Sl. No.
Particulars Approved in
Order dtd 01.03.2019
APDCL Submission
1 Cost of power purchase 4722.41 5525.37
2 Operation & Maintenance Expenses 1049.79 921.69
2.1 Employee Cost 850.68 733.00
2.2 Repair & Maintenance 149.97 148.84
2.3 Administrative & General Expenses 49.14 39.86
3 Depreciation 17.77 49.39
4 Interest and Finance Charge 6.99 68.96
5 Interest on Working Capital 0.00 1.90
6 Other Debits incl. Provision for Bad Debt 12.35 22.10
7 Interest on Consumer security deposit 16.14 38.06
8 Exceptional Items, if any
22.51
9 Sub-total (1+2+(3 to 8)) 5825.45 6649.98
10 Return on Equity 26.04 26.04
11 Total Expenditure (9 to 10) 5851.49 6676.02
12 Less: Non-Tariff Income 257.11 408.46
13 Sharing of efficiency gain/(losses)
a) Reduction in Power Purchase cost due to incremental losses
(93.41)
b) Sharing of gains/(losses) on account of O&M expenses
(3.67)
14 Aggregate Revenue Requirement (11-12+13) 5594.38 6170.48
15 Revenue with approved Tariff (including Targeted Subsidy)
5592.99 5391.51
16 Other Income (Consumer Related) 253.67 586.73
17 Total Revenue Before Other Subsidy (17+18) 5846.66 5978.23
18 Other subsidy/Revenue Grant
238.95
19 Total Revenue after subsidy 5846.66 6217.18
20 Gap/(Surplus) Standalone FY 2019-20 (252.28) (46.71)
21 True up adjustment
Differential Revenue Gap/(Surplus) of FY 2017-18 to be recovered in FY 2019-20
175.19 175.19
Net Carrying Cost 77.09 77.09
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 26
Sl. No.
Particulars Approved in
Order dtd 01.03.2019
APDCL Submission
Sub-total (21): True Up adjustment 252.28 252.28
22 Gross Gap/(Surplus) 0.00 205.57
2.2 Annual Performance Review (APR) for FY 2020-21
2.2.1 APDCL submitted the APR for FY 2020-21, based on the first half actual and
projections for the second half. The submission made by APDCL is shown in the table
below:
Table 2: APR for FY 2020-21 as submitted by APDCL (Rs. Crore)
Sl. No.
Particulars
Approved in Order
dtd 07.03.2020
APDCL Submission
1 Cost of power purchase 5199.13 5843.39
2 Operation & Maintenance Expenses 1005.73 1004.02
2.1 Employee Cost 779.26 771.83
2.2 Repair & Maintenance 171.98 184.05
2.3 Administrative & General Expenses 54.49 48.15
3 Depreciation 24.22 42.67
4 Interest and Finance Charge 37.24 111.12
5 Interest on Working Capital 0.00 0.00
6 Other Debits incl. Provision for Bad Debt 15.52 22.10
7 Interest on Consumer security deposit 33.84 38.06
8 Exceptional Items, if any
9 Sub-total (1+2+(3 to 8)) 6315.68 7061.36
10 Return on Equity 26.04 156.69
11 Total Expenditure (9 to 10) 6341.72 7218.05
12 Less: Non-Tariff Income 297.36 450.62
13 Aggregate Revenue Requirement (11-12) 6044.36 6767.43
14 Revenue with approved Tariff (including Targeted Subsidy)
5127.43 5344.36
15 Other Income (Consumer Related) 516.93 591.16
16 Total Revenue Before Other Subsidy (14+15) 5644.36 5935.52
17 Other subsidy/Revenue Grant 400.00 300.00
18 Total Revenue after subsidy 6044.36 6235.52
19 Gap/(Surplus) Standalone FY 2020-21 0.00 531.91
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 27
2.3 Aggregate Revenue Requirement for FY 2021-22
2.3.1 APDCL has claimed the revised ARR for FY 2021-22 as detailed in the Table below:
Table 3: ARR for 2021-22 as submitted by APDCL (Rs. Crore)
Sl. No.
Particulars Approved in
Order dtd 01.03.19
APDCL Submission
1 Cost of power purchase 5471.43 6028.53
2 Operation & Maintenance Expenses 1187.56 1147.09
2.1 Employee Cost 934.52 837.99
2.2 Repair & Maintenance 196.84 255.90
2.3 Administrative & General Expenses 56.20 53.19
3 Depreciation 23.73 62.53
4 Interest and Finance Charge 15.29 129.91
5 Interest on Working Capital 2.35 0.00
6 Other Debits incl. Provision for Bad Debt 12.35 22.10
7 Interest on Consumer security deposit 17.79 38.06
8 Exceptional Items, if any
9 Sub-total (1+2+(3 to 8)) 6730.50 7428.22
10 Return on Equity 26.04 287.33
11 Total Expenditure (9 to 10) 6756.54 7715.55
12 Less: Non-Tariff Income 283.46 409.75
13 Aggregate Revenue Requirement (11-12-13) 6473.08 7305.80
14 Revenue with approved Tariff (including Targeted Subsidy)
* 6157.48
15 Other Income (Consumer Related) 291.61 341.40
16 Total Revenue Before Other Subsidy (17+18) * 6498.88
17 Other subsidy/Revenue Grant
18 Total Revenue after subsidy * 6498.88
19 Gap/(Surplus) Standalone FY 2021-22 * 806.92
Note: * No tariff was approved for FY 2021-22, hence, the revenue was not approved
2.3.2 APDCL has thus estimated the Cumulative Revenue Gap for FY 2021-22 as shown in
the Table below:
Table 4: Cumulative Revenue Gap till FY 2021-22 as proposed by APDCL (Rs. Crore)
Sr. No. Particulars Rate of Interest
Revenue Gap
1 Revenue Gap after true-up for FY 2019-20 _ 205.57
2 Carrying/(Holding) cost for FY 2019-20 (half Year)
11.54% 11.86
3 Carrying/(Holding) cost for FY 2020-21 (full Year)
10.91% 22.42
4 Carrying/(Holding) cost for FY 2021-22 (half Year)
10.00% 10.28
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 28
Sr. No. Particulars Rate of Interest
Revenue Gap
5 Total carrying cost 44.57
6 Total Revenue Gap for FY 2020-21 250.14
7 Revenue Gap for FY 2021-22 806.92*
8 Cumulative Revenue Gap for FY 2021-22 1056.93*
Note: * corrected by APDCL vide its replies dated 05.01.2021
2.3.3 APDCL submitted that the ARR for FY 2021-22 works out to Rs. 7214.54 crore as
under:
Table 5: ARR for FY 2021-22 as proposed by APDCL (Rs. Crore)
Sr. No. Particulars Amount
A Standalone ARR 6964.40
B True-up for FY 2019-20
i Principal amount 205.57
Ii Carrying cost 44.57
Sub-total (B) 250.14
Grand Total (A+B) 7214.54
2.3.4 APDCL submitted that the Average Cost of Supply (ACoS) to recover entire ARR of
Rs. 7214.54 Crore during FY 2021-22 will be Rs. 8.62/kWh, as against the approved
ACoS of Rs. 7.87/kWh for FY 2020-21 (without Government Subsidy).
2.3.5 APDCL submitted that recovery of entire amount of Rs. 7214.54 Crore will lead to
average increase of existing retail tariff by 10% over approved ACoS. At the same
time, delayed recovery of dues will have adverse effect on APDCL regarding discharge
of its obligations.
2.3.6 APDCL submitted that it has received Rs. 69.99 Crore as rebate from CPSU
Generating Companies (Gencos) pursuant to Ministry of Power, Govt. of India’s
advisory during May, 2020 to provide some respite to the retail consumers of the
DISCOM. Further, enhancement of equity pursuant to conversion of loan/grant with
enhanced Authorised share capital, the RoE for FY 2021-22 is estimated at Rs. 287.33
Crore against prevailing Rs. 26.04 Crore.
2.3.7 APDCL submitted that being sensitive to its valued consumers and the global crisis
faced by every segment of consumers, APDCL is proposing to recover only Rs.
6883.26 Crore by passing the benefit of Rebate from CPSU Gencos for COVID during
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 29
FY 2020-21 and keeping the claim on additional RoE in abeyance for truing up as
under:
Table 6: ARR Proposed for Recovery in FY 2021-22 (Rs. Crore)
Sr. No. Particulars Amount
a Standalone ARR 6964.40
a1 Additional RoE on enhancement of equity 261.29
A Net amount with additional RoE (a – a1) 6703.11
B True-up for FY 2019-20
i Principal amount 205.57
Ii Carrying cost 44.57
Sub-total (B) 250.14
C Rebate from CPSU Gencos for COVID during FY 2020-21
69.99
Grand Total (A+B-C) 6883.26
2.3.8 APDCL requested the Commission to consider passing of rebate from CPSU Gencos
for COVID-19 during FY 2020-21and actual RoE for FY 2021-22 at the time of Truing
Up for respective years.
2.3.9 APDCL submitted that recovery of the reduced amount of Rs. 6883.26 Crore will lead
to only 5% average increase on approved ACoS, i.e., ACoS of Rs. 8.26/kWh for FY
2021-22.
2.3.10 APDCL proposed revised tariffs in order to recover the Revenue of Rs. 6883.26 crore
for FY 2021-22, which is elaborated in the Chapter on Tariff Philosophy.
2.4 Prayers of APDCL
2.4.1 Prayers of APDCL, in its Petition, are reproduced below:
“
1. To admit the petition for true-up of ARR for FY 2019-20
2. To approve the amount of revenue gap for true-up of ARR for FY 2019-20 as
mentioned above
3. To admit the petition for annual performance review for FY 2020-21
4. To approve the amount of revenue gap as mentioned above for annual
performance review for FY 2020-21
5. To admit the petition for annual revenue requirement for FY 2021-22.
6. To approve the amount of revenue gap for FY 2021-22
7. To condone any inadvertent omissions/ errors/ shortcomings and permit the
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 30
petitioner to add/ change/ modify/ alter this filing and make further submissions as
may be required at a future date
8. To allow further submissions, addition and alteration to this Petition as may be
necessitated from time to time
9. Treat the filing as complete in view of substantial compliance as also the specific
requests for waivers with justification placed on record
10. To grant any other relief as the Hon’ble Commission may consider appropriate.
11. And pass such other and further orders as are deemed fit and proper in the facts
and circumstances of the case in the interest of justice”.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 31
3 Brief Summary of Stakeholders’ Comments,
Response of the APDCL and Commission’s View
3.1.1 The Commission received objections/suggestions from the following six (6)
stakeholders on the Petition filed by APDCL.
Sl. No. Name of Respondent
1 Assam Branch of India Tea Association (ABITA)
2. Consumer Advocacy Cell (CAC)
3. Federation of Industries and Commerce of North Eastern Region (FINER)
4. Indian Energy Exchange (IEX)
5. North Eastern Small Scale Industries Association (NESSIA)
6. North Eastern Tea Association (NETA)
3.1.2 APDCL submitted its responses to the objections/suggestions received from the above
stakeholders.
3.1.3 The Commission considered the objections / suggestions received and notified the
Respondents to take part in the Hearing process by presenting their views in person
before the Commission, if they so desired.
3.1.4 The Commission held Public Hearing at Bidyut Niyamak Bhawan, Six Mile, Guwahati
on February 06, 2021.
3.1.5 The respondents attended the Hearing and submitted their views/ suggestions. In
addition to the above respondents, Grahak Suraksha Sanstha (GSS) made oral
submissions on APDCL’s Petition during the Public Hearing.
3.1.6 All the written representations submitted to the Commission and the oral submission
made before the Commission in the Hearing and the responses of APDCL have been
carefully considered while issuing this Tariff Order.
3.1.7 The objections/ suggestions made by the stakeholders and responses of the Petitioner
are briefly dealt with in this Chapter. The major issues raised by the respondents are
discussed below along with the response of the Petitioner (APDCL) and views of the
Commission.
3.1.8 The figures quoted in the submissions by the respondents/Petitioner are as mentioned
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 32
by them in their respective submissions. While all the objections /suggestions have
been given due consideration by the Commission, only major responses/ objections
received on the Petitions and also those raised during the course of Hearing have been
grouped and addressed issue-wise, in order to avoid repetition.
Issue 1: Energy Sale & Projection
Stakeholders’ Comments
ABITA submitted that the actual sales for FY 2019-20 are lower than the approved sales.
ABITA requested the Commission to review the sales in Jeevan Dhara category and HT
Industries where the deviation from numbers in APR Order is more than +10%.
ABITA also observed that APDCL has projected energy sale of 7261 MU and 8366 MU
against approved sales of 7815 MU and 8962 MU for FY 2020-21 and FY 2021-22
respectively. ABITA analysed the sales projections across various categories and noticed
that although APDCL has taken into account the CAGR of 5 years across categories, the
projected numbers are inconsistent.
CAC submitted that projected sale for 2019-20 is lesser by an amount of 673 MU from the
approved figure of 7930 MU, although there was 4% growth in sales for FY 2018-19. CAC
observed that such reduction of load should reduce the distribution losses too. CAC
questioned as to how the breakup of category wise energy sales was derived at in absence
of any energy auditing scheme.
Response of APDCL
APDCL submitted that deviation in sales for respective category was elaborated in details
in relevant chapter of the petition. The proposition of growth trajectory for each category is
mentioned in respective chapters of respective petitions.
APDCL submitted that energy sales quantum as depicted in the petition is cumulative
energy billed during the FY 2019-20 to all category of consumers. APDCL submitted that
all the information submitted in the true up petition are supported by statement of accounts
duly audited by Statutory Auditors.
Commission’s View
The category-wise sales approved by the Commission are discussed in relevant Chapters
of this Order.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 33
Issue 2: Distribution loss
Stakeholders’ Comments
ABITA and FINER submitted that APDCL’s actual distribution loss of 19.06% in FY 2019-
20 against the approved level of 16.00% is even higher than the distribution loss target set
for FY 2013-14. APDCL’s rationale for non-achievement of distribution loss includes
manifold increase in LV consumers, deferred implementation of various schemes, age of
assets and inverse HT/LT ratio.
ABITA submitted that all over India, there is increase in number of consumers through
various schemes such as RGGVY/ SAUBHAGYA. However, technological and
infrastructure improvement-oriented schemes under R-APDRP and IPDS have supported
the distribution utilities in obtaining substantial technical and commercial loss reduction
levels. ABITA observed that APDCL has also committed under UDAY scheme to reduce
AT&C loss levels in the State of Assam to 15% for FY 2019-20.
ABITA further submitted that, even after having hilly terrain and remote habitations, states
like Himachal Pradesh and Uttarakhand were able to reduce the losses in the range of 12-
13%. FINER submitted that Uttar Pradesh (UP) the distribution losses have reduced from
21.30% in FY 2017-18 to 18.68% in FY 2018-19, 11.96% in FY 2019-20 & 11.54% in FY
2020-21 despite implementation of Saubhagya Scheme.
In view of the above, ABITA & FINER requested the Commission to consider the loss
target of 16% for FY 2019-20, while computing power purchase cost.
Moreover, ABITA & FINER requested the Commission to consider distribution loss of
15.5% and 15% for FY 2021 and FY 2022 respectively instead of estimated 18.50%
for FY 2020-21 and 17.50% for FY 2021- 22.
CAC submitted that the figures of distribution losses appear to be fictitious and arbitrary
in the absence of system study followed by energy audit. However, APDCL has correctly
pointed out that high LT: HT ratio is one of major reasons for high distribution loss. CAC
submitted that rural consumers need the same quality of power as that of urban consumers
and APDCL must take up the required projects for rural consumers to improve LT: HT ratio
for which the State Government has to extend financial assistance. CAC requested the
Commission to advise the State Government on this crucial matter.
NETA opined that the Petitioner’s Transmission & Distribution loss is one of the highest
in the country and to mitigate it they are compelled to procure additional power at a higher
cost than the approved quantum and budget.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 34
NETA stated that the reasons for higher losses can be attributed to power theft / Illegal
connections / inefficient supervision / Mismanagement / Corruption.
NETA requested the Commission not to allow excess transmission and distribution losses
and provide a reduction in power tariff across all sectors and categories.
Response from APDCL
APDCL submitted that domestic consumer base has increased by 40% over FY 17-18.
Such massive inclusion of consumers at low voltage without adequate HT infrastructure
has only distorted the HT:LT ratio.
APDCL further submitted that there is no comparison of Assam with Himachal Pradesh
(HP) and Uttarakhand. Share of Domestic consumption in Himachal and Uttarakhand is
16.55% and 22.54% against 46.31% in Assam with national average of 28.01% during FY
2018-19. Around 60% of consumption in HP is higher voltages unlike Assam.
APDCL submitted that all earnest efforts are taken on regular basis to optimize the
efficiency within the constrained resources. The submission on reduction of losses in
UP is factually incorrect.
APDCL submitted that it has already taken up various projects to improvise the adverse
LT:HT ratio through EAP. However, massive investment is required to reach the standard
level. APDCL stated that the Company is taking up projects in phased manner within its
constraints in complete support from the Government.
Commission’s Views:
Distribution Losses are a controllable parameter. The Commission has considered the
approved Distribution Loss level, and disallowed the excess power purchase cost in the
true-up of FY 2019-20 by restricting the power purchase quantum to that corresponding to
the approved Distribution Loss level. The Distribution Loss approved for FY 2021-22 is
elaborated in Chapter 6 of this Order.
Issue 3: Power Purchase
Stakeholders’ Comments
ABITA & FINER submitted that APDCL claimed Rs. 5525 Cr. as power purchase cost for
FY 2019-20 as against Rs. 4722 Cr. approved.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 35
FINER & ABITA observed that large amounts have been spent through short term
procurement (IEX, DSM) which needs to be analysed. FINER observed that as per the
energy sales data available on Indian Energy Exchange website the average power
purchase rate for FY 2019-20 has been Rs. 2.997/kWh for North East Region, whereas
the average purchase cost of the energy procured by APDCL from short term market has
been Rs. 4.21/kWh and therefore, the burden of additional cost of Rs 137.18 Crore
incurred by APDCL on account of power purchase made through short term sources
should not be passed on the consumers of the state. FINER observed that APDCL may
be directed to engage and develop software based solution for Real Time Mechanism
(RTM) for better forecasting of power purchase from bilateral sources.
ABITA requested the Commission to direct the petitioner for planning its power
procurement in advance and undertake procurement through DEEP portal to ensure that
short-term power is procured at competitive rates. FINER observed that it would be critical
to examine as to whether APDCL has obtained any prior approval of the Commission for
procuring power form the short term where the rate of exceeded more than 105% of the
power purchase rate approved by the Commission in accordance with the AERC (Fuel
and Power Purchase Price Adjustment Formula) Regulations, 2010 and its amendments
thereof.
ABITA proposed that the rebate on power purchase payment may be adjusted from the
total power purchase amount. ABITA requested the Commission to undertake adequate
prudence check while approving the Power Purchase Cost
FINER requested the Commission to do prudence check on the floor price of solar and
non- solar REC procured by the Petitioner towards fulfilment of the RPO obligations.
CAC submitted that the unit cost of power for long term Power Purchase Agreement (PPA)
entered into by APDCL with various agencies like NTPC (BTPS), NVVL solar bundled,
Suryataap Solar, etc., is very high. CAC suggested that APDCL should have a dynamic
power purchase policy and constantly monitor the power market for cheaper power. CAC
observed that even without drawing power as envisaged in PPA, APDCL is liable to pay
fixed charges for the contracted load. CAC further observed that the State-run generating
Company continued to deliver poor performance and has contributed only 13% of energy
against an approved 22%.
NETA suggested that the Petitioner should purchase power through agencies like Indian
Energy Exchange (IEX), and from Bhutan, which is the cheapest in the world. This would
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 36
help to reduce Retail Tariff substantially.
Response of APDCL
APDCL mentioned that the Company procures power from IEX primarily to meet the peak
shortfall. As such, comparison is required to be made with Peak MCP and not with RTC
and claim of petitioner is in parity with that.
APDCL stated that weighted average rate of bilateral contracts (through DEEP portal) for
Peak power during FY 2019-20 is Rs. 5.87 per unit (without PoC drawal charges) against
actual expenditure of APDCL at Rs. 4.31 per unit during the same period from IEX & other
approved sources on short term basis, which only indicates the earnest efforts on part of
APDCL to optimize the available resources. Bilateral procurement was as per approval
from the Commission.
APDCL submitted that procurement of REC is an instrument to mitigate RPO compliance
and the same is passed through as considered by the Commission.
APDCL submitted that power procurement of APDCL is predominantly dependent on the
state generating stations of APGCL and allocation from central generating stations. With
31% share of hydro power with seasonal volatility and perennial low performance on part
of APGCL due to various factors, APDCL has to procure power during peak hours from
market. APDCL is taking various steps to optimize the power purchase cost with respect
to its consumer mix. Ministry of Power constituted an Expert Group to work out possible
reduction in the cost of power from Bongaigaon TPP of NTPC Ltd. to North Eastern States.
APDCL has already proposed for surrendering of power from NHPC Subansiri project
anticipating the higher tariff consequent to significant delay. APDCL further informed that
dedicated power purchase monitoring team is there for constant round the clock
monitoring of all activities to ensure optimal result.
Commission’s Views
The Commission has allowed power purchase cost as per provisions of MYT Regulations,
2018, only after prudence check, as elaborated in the relevant Chapters of this Order.
Issue 4: Power Exchange as part of the Merit Order Despatch
Stakeholders’ Comments
IEX submitted that in FY 2020-21 the Petitioner has procured 506 MUs from exchange at
an average rate of Rs. 3.26/ unit. IEX suggested that the Commission may consider
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 37
formalising the optimisation through market by evolving appropriate procedure for
considering short term market rates while finalising the Merit Order of the Discom. IEX
submitted that on similar grounds, UPERC has recently issued the Draft Merit Order
Despatch and Power Purchase Optimization Regulations, 2020, wherein it is mandated to
consider the opportunities in the market while procuring power.
In view of the above, IEX proposed that the Commission may consider evolving
appropriate framework by which the STOA/Power Exchange rates can be considered as a
part of the merit order of Discom.
Response from APDCL
APDCL submitted that the typical consumer mix vis-à-vis demand pattern coupled with
power from MUST RUN hydro and renewable sources compels partial drawal from
allocated sources with fixed cost burden. Such partial requisition is permissible only to the
extent of technical minimum for respective stations posing operational challenges over and
above commercial aspects.
APDCL mentioned that in the event of surrendering power from allocated sources, APDCL
will have to bear the fixed cost till the power is not allocated to other entity as per the
prevailing regulations. As such, detailed analysis on all aspects is required, particularly in
State perspective prior to making additional provisions as proposed.
Commission’s Views
Noted. The Commission directs the Petitioner to study the matter and take suitable actions
to optimise the Power Purchase Cost.
Issue 5: Purchase of Renewable power from the G-TAM market
Stakeholders’ Comments
IEX submitted that the Discom can fulfil its pending RPO obligations as well as the targets
in forthcoming years by procuring RE power through the GTAM market. Green Term
Ahead Market (GTAM) was introduced during FY 21 at IEX platform w.e.f. 21.08.2020
wherein Solar and Non-Solar renewable energy is being transacted in four contracts
namely intra-day, Day Ahead contingency, Daily and Weekly. The buyers of this market
can fulfil their respective RPOs at competitive price with flexibility of entry and exit in the
market.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 38
IEX further submitted that the market has witnessed an encouraging response and has
registered trade of around 550 MUs since launch. Therefore, IEX requested the
Commission to allow an explicit provision of RE power purchase through GTAM market.
Commission’s View
The Commission directs the Petitioner to study the matter and take suitable actions to
optimise the Power Purchase Cost by exploring all available options.
Issue 6: O& M Expenses
Stakeholders’ Comments
ABITA submitted that APDCL has claimed higher O&M expenses than that approved by
the Commission for FY 2019-20, FY 2020-21 and FY 2021-22. ABITA recalculated these
expenses separately in accordance with the AERC MYT Regulations, 2018 and requested
the Commission to consider the same.
FINER too reviewed the calculations for O&M expenses for FY 2019-20, FY 2020-21 and
FY 2021-22 and requested the Commission to consider their revised submissions. FINER
submitted that the Petitioner has claimed a provision of Rs. 2.00 crore, without submitting
any details for the same.
CAC submitted that since all O&M expenses have been assessed at Normative basis
without reflecting the actual expenditure, it’s difficult to judge the performance of APDCL.
CAC submitted that the Cell has been underlining the need to change the norms of MYT
Regulation - 2018 for the simple reason that normative expenses do not bring out the
actual picture of the utility. CAC further submitted that for FY 2019-20, growth factor of
employee expenses is zero against 1% approved by the Commission. CAC suggested that
pragmatic manpower planning for the Company is required for future growth. CAC
suggested that a comprehensive training policy needs to be formulated also for outsourced
technical workers, office assistants, bill clerks and meter readers engaged by APDCL so
that they can be accommodated into the Company in future.
Response of APDCL
The submission of the respondent is very arbitrary and selective to suit its cause. Claims
against respective head of accounts are made in strict adherence to governing regulations.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 39
All detailed calculations and justifications on heads of expenses are submitted before the
Commission for prudence check.
Details in regard to provision of Rs. 2.00 Crore has been submitted to the Commission.
APDCL requested the Commission not to take cognizance of the submissions by the
respondent.
Replying to the submissions of CAC, APDCL submitted that basis for consideration various
parameters for calculation as per regulation are aptly mentioned in the petition. Regarding
manpower planning vis-à-vis status of recruitment process was also mentioned in the
petition.
Commission’s View
The Commission has allowed O&M expenses as per provisions of MYT Regulations, 2018
after prudence check, as elaborated in the relevant chapters of this Order.
Issue 7: Capital Expenditure and Capitalization
Stakeholders’ Comments
ABITA & FINER submitted that APDCL has claimed actual capitalization during FY 2019-
20 is Rs. 1343.10 Cr. (Rs. 1295.54 Cr. from CWIP and rest through direct acquisition) as
against Rs. 650 Cr. approved in March 2019 order and the APR order of March 2020.
However, the respondents observed that APDCL didn’t provide the actual scheme-wise
capital expenditure and capitalisation achieved in FY 2019-20 with other details and also
the reasons for delay in execution of the projects.
The respondents requested the Commission to approve the actual capitalization of Rs.
650 Cr. for FY 2019-20 period and also direct APDCL to submit the details of works carried
out under various schemes against the asset addition.
FINER observed that the Hon’ble Uttar Pradesh Electricity Regulatory Commission while
passing the Order for Uttar Pradesh Power Corporation Limited has disallowed 25% of the
Capital Investment of the Discoms on account of failure in taking prior approval from the
UPERC. Further, FINER observed that the Petitioner has not provided Fixed Asset
Register for determining the original cost of Capital Expenditure of projects/ or original cost
of the fixed assets capitalized.
ABITA observed that the capital expenditure and capitalization claims for the MYT period
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 40
are not only overstated but also the operational efficiency of implementing such large
capex has never been demonstrated by APDCL in any of the past years. The CWIP of
APDCL has been increasing over the past years and efforts as well as funds should be
channelized towards completion of the ongoing works instead of initiation of new works.
ABITA requested the Commission to direct APDCL for prioritizing its various ongoing
schemes which may yield the desired benefits as opposed to increasing the CWIP.
Response of APDCL
APDCL submitted that all details in regard to capital expenditure vis-à-vis capitalisation is
provide to the Commission. Actual capitalisation as per audited statement of accounts is
to be considered as per the prevailing regulation. Projects capitalized are in strict
conformity with Capital Investment Plan approved by the Commission.
APDCL further submitted that needful steps for expeditious capitalization have been taken
by them in compliance to directives from the Commission, and projections were made
accordingly.
Commission’s View
Noted. The details regarding approved capital expenditure and capitalization are
discussed in the relevant Chapters of this Order.
Issue 8: Depreciation
Stakeholders’ Comments
ABITA submitted that APDCL has claimed a depreciation of Rs. 49.39 Cr. as against the
approved Rs. 17.77 Cr. ABITA requested the Commission to consider the closing assets
of Rs. 2199.70 Cr. along with the actual capitalization (after excluding assets created from
grants and consumer contribution) for FY 2019-20 for the purpose of computation of
depreciation. ABITA proposed depreciation of Rs. 19.79 Cr. in line with methodology
adopted by Commission in March 2020 Order.
ABITA further submitted that APDCL for APR of 2020-21 and revised projection of 2021-
22 has projected higher depreciation of Rs. 42.67 Cr. and Rs. 62.53 Cr. respectively
against approved Rs. 24.22 Cr. and Rs. 23.73 Cr. for FY21 and FY22 respectively.
Response of APDCL
APDCL submitted that it has provided the details of its claim in respective chapter of the
petition.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 41
Commission’s View
The Commission has allowed depreciation after necessary prudence check in accordance
with the MYT Regulations, 2018 as discussed in the relevant Chapters of this Order.
Issue 9: Interest and Finance Charges
Stakeholders’ Comments
ABITA submitted that APDCL has calculated normative Interest on Loan of Rs. 63.76 Cr.
by applying actual rate of interest @10.74% on the closing loan for FY 2019-20. ABITA
highlighted that as per Audited Accounts that the actual interest cost is reduced on account
of conversion of 75% of outstanding loan amount into grant and equity as agreed under
UDAY MoU. Accordingly, 75% of the GoA loan of Rs. 1510.04 Cr. i.e., Rs. 1132.53 Cr. is
converted to grant (Rs. 849.40 Cr.) and Equity (Rs. 283.13 Cr.)
FINER submitted that APDCL has wrongly considered the net closing loan capital instead
of the average loan capital while calculating Interest and Finance Charges for FY 2019-
20, FY 2020-21 and FY 2021-22. FINER sought attention of the Commission that the
Petitioner has not provided any FAR wherein it is not possible to know whether asset are
constructed by Petitioner with its own funds or by consumer contribution and Grants.
ABITA & FINER requested the Commission to carry out prudence check while approving
the interest and finance charges.
CAC submitted that interest and financial charges claimed by APDCL hardly tally with
corresponding figures of the balance sheet. CAC observed that APDCL has become
financially unsustainable without any attempt being made to make a SWOT analysis of the
entity.
Response of APDCL
APDCL submitted that the impact of UDAY was already considered in previous tariff orders
and normative debt amount is computed accordingly.
APDCL submitted that the submission of respondent in regard to consideration of average
loan is noted for correction and requested the Commission to consider interest of Rs. 66.20
Crore against present claim of Rs. 63.94 Crore.
Replying to CAC, APDCL submitted that mere perusal of Actual column of True-up of ARR
for FY 2019-20 will depict the same net surplus/deficit as in the audited balance sheet. It
is general principle that representation of standard accounts in regulatory format
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 42
necessitates alignment of various items in different schedules as per regulations.
However, the financial impact remains unaltered.
Commission’s View
The Commission’s analysis regarding Interest and Finance Charges is elaborated in the
relevant chapters of this Order.
Issue 10: Interest on Working Capital
Stakeholders’ Comments
ABITA submitted that APDCL has claimed Rs. 1.90 Cr. towards Interest on Working
Capital for FY 2019-20. The Commission has provisionally approved NIL towards IOWC
in its March 2019 Order and further as NIL in APR in the March 2020 Order. ABITA has
adopted the principles followed by the Commission and proposes IOWC of Rs. 0.70 Cr.
for true-up of FY 2019-20.
FINER submitted that on scrutinizing the audited accounts of APDCL for FY 2019-20, it
has been observed that the value of consumer security deposit is Rs. 851.32crore,
whereas the Petitioner has considered the value at Rs. 685.60 crore excluding the value
of consumer security deposit of Rs. 35.73 crore of the permanently disconnected
consumers, without providing any justification for deviation from the audited accounts. In
addition to above, FINER submitted that the Petitioner while calculating the one month
power purchase cost has deducted the payment made to IEX, as it has been considered
pre-paid in nature which is not as per the methodology followed by the Commission.
CAC opined that interest on working capital is assessed on normative basis and it cannot
be understood whether the interest have really been paid as the same is not reflected in
audited balance sheet.
Response of APDCL
APDCL submitted that detailed calculation of claim is already depicted in the petition and
requested the Commission not to take cognizance of the submission by respondent.
APDCL explained that amount receivable against permanently disconnected consumers
will be recoverable from security deposit only and accordingly the deducted from gross
security deposit available.
APDCL informed that procurement from IEX is on advance basis. Logic of deducting one
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 43
month’s power purchase cost is in the premise of liquidity time. Accordingly, the amount
pertaining to IEX is deducted.
Regarding CAC observations, APDCL replied that the submission of respondent seems
diverged from the very concept of the regulation on the parameter. Mere perusal of Note
No. 2.24 of Statement of Accounts will be enough to observe the actual interest paid on
working capital.
Commission’s View
The Commission has computed IoWC in accordance with the MYT Regulations, 2018 and
the same is elaborated in the relevant Chapters of this Order.
Issue 11: Return on Equity
Stakeholders’ Comments
IEX observed that the Petitioner has considered additional ROE on enhancement of equity
to the tune of Rs. 261.29 Cr as a part of the net ARR. However, the Petitioner has
requested the Commission to consider this additional ROE amount during the true-up of
the respective financial year and thus reduced the same amount from the ARR while
computing the tariff change and cost of supply for FY 21-22. However, IEX noted that the
Petitioner has inadvertently included the amount in ARR while working out the wheeling
Charge to be applicable to consumers.
ABITA submitted that APDCL has claimed an amount of Rs. 26.04 Cr. towards RoE for
FY 2019-20. ABITA pointed out that APDCL has still requested to allow RoE on the share
application money pending allotment on account of transfer of trading function, even after,
the matter has been settled several times by the Commission in the past.
ABITA proposed RoE for FY21 and FY22 considering conversion of loan under UDAY-
Rs. 1261 Crore as grant, Rs. 283 Cr. as Equity and Rs. 89 Cr. of share application money,
pending allotment to equity. ABITA requested the Commission to only allow Return on
Equity on the Equity base as per extant audited accounts and on audited financial accounts
for FY 2020-21 and FY 2021-22.
Response of APDCL
APDCL submitted that the respondent has erroneously added the claim of True Up amount
in Table-3 mentioning that the same was considered by the petitioner. However, the
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 44
petitioner has not considered the same.
APDCL submitted that no amount is claimed on account of share application money
pending allotment. Moreover, APDCL has not proposed to recover the incremental RoE at
this instant to provide relief to the consumers to that extent.
Commission’s View
Noted. Computation of Return on Equity is discussed in relevant Chapters of this Order.
Issue 12: Revenue Grants/ Surplus
Stakeholders’ Comments
ABITA observed that APDCL submitted revenue subsidy of Rs. 238.95 Cr. to be
considered for true-up of ARR for FY 2019-20. ABITA pointed out that in the books of
accounts for FY 2019- 20, APDCL received total targeted subsidy for consumers on
account of Tariff of Rs.289.86 Cr. from GoA during FY 2019-20. Further, GoA has also
approved Rs. 20 Cr. towards loss funding under UDAY scheme. Thus, APDCL has actually
received total Rs. 548.81 Cr. towards subsidy/ grant for FY 2019-20. ABITA requested the
Commission to check the prudency of these grant/ subsidy booked and account for all the
financial support APDCL has received for FY 2019-20 to true-up the ARR for the period.
Response of APDCL
APDCL replied that amount of Rs. 289.86 Crore was booked as targeted subsidy during
the year and the same was adjusted in the ARR as a part of revenue from sale of power.
Treatment against grant of Rs. 20 Cr. towards loss funding under UDAY scheme received
was adjusted in line with the principles adopted by the Commission in its earlier order. The
same was elaborated in respective chapter of the petition.
Commission’s View
Noted. The computation of subsidy/grant is detailed in relevant Chapters of this Order.
Issue 13: Treatment of Financial Support received under UDAY Scheme
Stakeholders’ Comments
FINER submitted that as per the information available in the Audited Accounts of APDCL
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 45
for FY 2019-20, the Govt. of Assam approved an amount of Rs. 20.00 crore towards
‘Operational Fund Requirement (OFR) under the UDAY scheme’ @ 5% of operating loss.
FINER highlighted that any grant provided which does not carry any liability of repayment,
against the expenses already allowed as a part of tariff, should be reduced from the ARR
of the Petitioner.
FINER requested the Commission that Rs. 20.00 crore allowed as a grant by State Govt.
under the UDAY Scheme, for payment of power purchase dues should be disallowed for
determination of True-up for FY 2019-20.
Response of APDCL
APDCL submitted that Operational Fund Requirement (OFR) received under UDAY is
treated in line with earlier consideration of the Commission.
Commission’s View
The treatment regarding OFR Fund has been discussed in the subsequent chapters of this
Order.
Issue 14: ARR and Revenue Surplus/Gap
Stakeholders’ Comments
ABITA proposed revised revenue surplus of Rs. 1191.06 Cr. in FY 2020-21 and Rs.884.28
Cr. in FY 2021-22 respectively and requested the Commission to use the surplus revenue
for rationalizing the tariff of subsidizing consumers like industry, tea & coffee etc. ABITA
further requested the Commission is requested to carry forward the revenue surplus along
with carrying cost as per the regulatory practice and disallow the tariff hike being proposed
for FY 2021-22 by the Petitioner.
Further, ABITA proposed revised Aggregate Revenue Requirement (ARR) for FY22 of Rs
2246.29 Cr as against Rs. 6883.27 Cr projected by the petitioner,
FINER submitted that against the consolidated projected ARR Gap of Rs 1,544.40 crore,
by the petitioner, consolidated revenue surplus of Rs. 146.38 crore should be approved by
the Commission for FY 2021-22 (i.e., after considering the allowable Surplus of Rs. 70.26
crore for FY 2019-20 (True-up) and Rs. 168.19 crore for FY 2020-21 (APR)).
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 46
Response of APDCL
APDCL submitted that the respondent has computed the ARR vis-à-vis Cumulative
Revenue Gap on the premise of some arbitrary calculation without any merit. In view of
the above, the Commission is requested to reject the claim of the respondent.
Commission’s View
The ARR and Tariff for FY 2021-22 has been determined in accordance with the MYT
Regulations, 2018 and after necessary prudence check
Issue 15: High Tariff for tea Category
Stakeholders’ Comments
ABITA submitted that the Assam Tea industry produces 52% of the total Indian production;
however, the production in 2020 suffered a major setback due to the COVID -19 pandemic.
ABITA stated that the advisory committee appointed by the Government of Assam has
conducted a study on impact of the COVID on the Tea Industry. As per Committee’s report,
considering average price of Rs. 152.60 per KG, the loss to the Tea Industry is estimated
to be around Rs. 1173 Cr.
ABITA submitted that the existing tariff applicable to the Tea, Coffee Estates/ Plantations
is amongst the highest in the State of Assam. ABITA requested the Commission to disallow
any upward increase in the tariff for Tea, Coffee & Rubber consumer category for FY 2021-
22 as the same will render the affected manufacturing units in the State of Assam as
unviable.
NETA submitted that the proposed Tariff Chart, especially the hike in category Tea, Coffee
& Rubber, and TOD Tariff is highly objectionable, inflated, erroneous, arbitrary, biased,
disconnected from the ground realities of the respondent. NETA observed that unlike Oil
& Coal Sector, the Tea industry runs without significant Govt. Grants and Subsidies.
However, there is no tariff hike proposed in Oil and Coal Sector. NETA pleaded that the
same be reviewed and equated justifiably.
Response of APDCL
APDCL contended that the petitioner entity is also not insulated from the adverse impact
of COVID. APDCL submitted that being sensitive to its consumers, APDCL has proposed
to pass on the benefit received by it through Ministry of Power intervention at this juncture
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 47
without deferring till true up.
APDCL submitted that the petitions are prepared as per the principles of governing
regulations and justification on all amounts is specifically mentioned therein. APDCL
submitted that the proposed retail supply tariff tries to rationalise the tariff as well as the
cross-subsidy amongst the various consumer categories while proposing tariffs for the
various consumer categories.
Commission’s View
Noted.
Issue 16: Increase in Fixed & Energy Charges
Stakeholders’ Comments
ABITA submitted that APDCL has again proposed an abrupt increase in fixed and energy
charges across various categories to cover the erroneous computation of revenue gaps
for FY 2021-22. ABITA has already worked out ARR in accordance with the principles as
per previous tariff orders and there should be huge amount of surplus in FY 2021-22.
ABITA submitted that the element of cross-subsidy in HT tariff can further be reduced in
view of this surplus available.
ABITA further submitted that that the proposed increase of Rs. 30/kVA/month in fixed
charges and 50 paisa per unit increase in energy charges is exorbitantly high increase
(+8%) to Tea, Coffee & Rubber consumer category, which will unnecessarily burden the
consumers and badly affect the viability of the industry.
FINER submitted that the power tariff in Assam, is among top 5 in India. In the wake of
Advantage Assam, done by Govt of Assam, it won’t be lucrative for any industry to have
a plant here, if the power prices are on such a high. Therefore, the Commission should
not increase the power price increase further, but rather device means to bring this price
down, which shall ultimately help development of the State.
NESSIA submitted that with the power interruptions, unscheduled load shedding and poor
quality of power existing in different areas of the State, increase of fixed charge is not
justified. NESSIA further submitted that for HT Small Sector Industries upto 50 KVA even
the existing fixed charge is on a higher side. NESSIA requested the Commission to reduce
fixed charges for the Domestic and Small Industry categories.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 48
NESSIA observed that APDCL and the Commission should insist Govt. of Assam for
additional funding as grant on regular basis to bail out the crisis of APDCL.
GSS during the public hearing submitted that there were frequent power interruptions and
unscheduled load shedding and therefore, claim for increase in fixed and energy charges
was unjustified.
Response of APDCL
APDCL submitted that Operation and Maintenance cost of electricity infrastructure has
been increasing manifold due to price rise of all commodities which determine the cost of
supply in distribution sector. APDCL submitted that estimated fixed cost of around 54%,
only 24% recovery is proposed in the form of fixed charges. The proposal was submitted
in the premises of improved supply conditions to tea gardens.
APDCL submitted that the petition did not consider any Government subsidy. However,
in case Government provides some subsidy to keep the tariff at a reasonable level like
previous years, the Commission will consider the same at the time of fixation of tariff.
Commission’s view
Noted.
Issue 17: Power Quality
Stakeholders’ Comments
NETA submitted that as Power Supply is very erratic, the respondent has to depend on
captive power generation, which unnecessarily increases expenses of the consumer, at
the same time the Petitioner themselves creates loss to its Revenue.
Response of APDCL
APDCL submitted that the supply quality to tea gardens have significantly improved over
the years.
Commission’s view
Noted. APDCL should take measures to improve power quality.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 49
Issue 18: Determination of Tariff based on Voltage-wise Cost of Supply
Stakeholders’ Comments
ABITA & FINER requested the Commission to determine tariff based on voltage-level cost
of supply. This would enable cost reflective tariff in the State.
ABITA submitted that the existing voltage-wise cost of supply may be based on number
of assumptions but unless the Commission would implement the same, the Petitioner
would not be providing sufficient information in this regard.
FINER submitted that the proposed tariff increases by APDCL are higher for the already
subsidizing consumers. This shall further create an imbalance in the various tariff
categories and shall be against the principles laid down in the Tariff Policy. Therefore, the
tariff proposed by APDCL for the HT categories of consumers ought to be examined in
detail and a proper and viable tariff ought to be fixed by the Commission.
Response of APDCL
APDCL submitted that it has no issue on VCoS based tariff in principle subject to adequate
commercial safeguard to the utility. However, with typical consumer mix of Assam vis-à-
vis rationalisation of tariff as per Tariff policy and purchasing power parity, the same will
be very challenging at this juncture. Adequate metering arrangement projects is
undertaken for proper determination of VCoS. Therefore, it would not be appropriate to
determine tariffs on the basis of VCoS at this point in time.
APDCL further submitted that being a utility, APDCL has its limitation and guided by laid
down principles, policy, regulations etc. However, with massive domestic consumer base
with low purchasing power, APDCL has tried to balance amongst all categories.
Commission’s view
Noted.
Issue 19: Temporary Disconnection
Stakeholders’ Comments
FINER proposed that consumers should be allowed to get into temporary disconnection
of load, with a minimum period of 1 month and maximum period of 3 months, after giving
a 30 days’ notice. This can be allowed once a year maximum. During this time, no charges
should accrue to the consumer. This is basically, with regard to distressed industrial and
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 50
commercial consumers, who has to bear cost of fixed charges, irrespective of whether
they run the unit or not.
Response of APDCL
APDCL submitted that such proposition may lead to load volatility vis-à-vis excess fixed
charge burden on power under agreement. All these costs will ultimately be part of retail
tariff only.
Commission’s view
Noted.
Issue 20: CAG Report & Independent Auditor’s Report
Stakeholders’ Comments
FINER submitted that it is mandatory for APDCL to submit audited accounts including
C&AG report along with the Petition for truing up. However, APDCL has filed the Petition
based on provisional accounts. FINER submitted that true up of FY 2019-20 should be
conducted only after the audited accounts and C&AG’s report has been filed.
Response of APDCL
APDCL replied that Statutory Auditor’s report has been provided to the Commission as
per stipulated timeline. CAG audit is underway and report of the same will be made
available on receipt.
Commission’s View
The Petitioner submitted the Audited Accounts for FY 2019-20 on 15th January, 2021.
Accordingly, the Commission has considered these Audited Accounts for the purpose of
Truing Up of FY 2019-20.
Issue 21: Power factor Rebate
Stakeholders’ Comments
FINER submitted that several states levy penalty for low power factor on industries and
provide incentives for achieving higher power factor. FINER observed that for other States
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 51
the incentive is provided in steps for every 1% increase in power factor beyond 95%.
FINER opined that the industrial consumers should be incentivized more, as is being done
in the other States, by providing rebate for every 1% increase beyond 95% power factor
instead of just 2% rebate between 95%-100%. FINER requested the Commission that a
similar concept may be accepted for industrial consumers of APDCL.
Response of APDCL
APDCL submitted that being a regulated utility, APDCL is complying with the regulations
and admissible rebates are allowed.
Commission’s View
Noted.
Issue 22: Load factor Rebate
Stakeholders’ Comments
FINER submitted that many distribution companies in India, have started giving a load
factor rebate for maintaining an above average load by the unit. This helps the Discom in
planning the load requirement and optimum utilization of resources may happen, with
negligible shortages. The industry on the other hand gets incentivized to maintain a high
load factor, and thereby increasing efficiency and performance of the system.
Response of APDCL
Being a regulated utility, APDCL will comply with any such rebate allowed by Hon’ble
Commission after thorough deliberation.
Commission’s View
Noted.
Issue 23: Peak Load Shedding
Stakeholders’ Comments
FINER submitted that during Peak load, there is sometimes shedding for 3-6 hours for an
industry in a day, however the fixed charge is being charged in full from the consumer.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 52
FINER submitted that, the fixed charges per unit shall be pro-rated, as per every available
during a day or a month.
FINER further submitted that in Assam, load shedding for industries happens during peak
load, due to this maintaining high power factor becomes difficult. It shall be imperative
that, APDCL provided the necessary power during peak load hours also, so that the
industrial consumers can maintain better Power factor, and get incentivized for
maintenance of better PF.
Response of APDCL
APDCL submitted that some generic submission of load shedding without any
substantiation doesn’t warrant any response. However, the respondent is free to move
competent APDCL authority with specific case details for redressal. Pro-rata billing of
fixed charge is done as per the regulation.
Commission’s View
Noted.
Issue 24: Timely payment & Bank Guarantee
Stakeholders’ Comments
FINER submitted that the consumers should be given a discount for timely payment of
dues so as to improve the cash flow of the Company.
FINER also submitted that Bank Guarantee be allowed to be given as security deposit for
any consumer.
Response of APDCL
APDCL submitted that submission of respondent calls for amendment in prevailing
regulations and beyond the scope of the instant petition.
Commission’s View
The requirement of giving security deposit in cash is as per the AERC (Electricity Supply
Code) Regulations, 2017. Any change would require amendment of the relevant
provisions of the aforesaid Regulations after necessary previous publication of the
proposed amendment.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 53
Issue 25: Separate Tariff Category for Cold Storage Units
Stakeholders’ Comments
FINER submitted that currently APDCL has three tariff categories related to
agriculture/irrigation with no category made for cold storage units. Thus, currently all such
cold storage units are subjected to high industrial tariff. FINER submitted that in order to
encourage the local agricultural and food industry it is essential that a separate tariff
category be created for cold storage units.
Response of APDCL
APDCL submitted that the Commission may consider with detailed submission to assess
the tariff implication.
Commission’s View
In view of the Government Policy advocating simplification of tariff categories, the
Commission has decided not to introduce any new tariff category at present.
Issue 26: Cross Subsidy and Cross Subsidy Surcharge
Stakeholders’ Comments
ABITA submitted that the domestic and other LT consumers continue to remain highly
cross-subsidized. Therefore, the HT and industrial consumers are required to bear the
burden in absence of adequate tariff subsidy by the State Government to the
economically weaker sections like Jeevan Dhara or domestic consumers for which the
tariffs are considerably 27% and 16% below the average cost of supply respectively.
Cross subsidy Surcharge (CSS) is worked out by the Commission as the difference
between the ACoS and ABR of a particular category. IEX stated that the Petitioner in its
submission while computing the Avg. Cost of Supply has made an inadvertent summation
error while calculating the total ARR. Based on the corrected calculation of the Net ARR,
the ACoS comes out to be Rs. 8.29/ unit and not Rs. 8.23/ unit.
Response of APDCL
APDCL submitted that the tariff proposal is made with due care to keep the cross-subsidy
levels within ±20% to the extent possible.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 54
Replying to IEX, APDCL submitted that calculation of the petitioner is correct.
Commission’s View
Noted.
Issue 27: Interest on Consumer Security Deposit
Stakeholders’ Comments
ABITA submitted that APDCL in its petition has claimed Rs. 38.06 Cr. towards interest on
consumer security deposit (CSD) for truing up of FY 2019-20. ABITA submitted that
APDCL has mentioned in the petition that Rs. 57.84 Cr. will be liquidated subsequently
with energy bills and actual payment during the years is Rs. 27.26 Cr, however, there is
no clarity regarding actual payment. In view of the same, ABITA proposed to keep the
Interest on CSD same as already approved by the Commission in prior two Orders.
FINER submitted that the Petitioner in FY 2019-20 has requested the Commission to
allow the interest liability on consumer security deposit as per the audited statement of
accounts, which is to the tune of Rs. 65.32 crore, whereas the actual payment made
during the year is only Rs.38.06 crore. FINER requested that the Petitioner’s plea for
allowing unpaid interest expenses on CSD should not be accepted.
Response of APDCL
APDCL submitted that the claim is made on the basis of actual payment as per annual
statement of accounts duly certified by auditors.
Commission’s View
The Commission has been allowing payment as per actual against the interest on
consumer security deposit in the ARR.
Issue 28: Special Tariff at 132 kV
Stakeholders’ Comments
FINER submitted that instead of proposing endless capital expenditure, the Distribution
Company should work on the transmissions lines in Assam to be upgraded to 132 KV
level, for the industrial consumers.
The EHT category is very much a reality and consumers desire to take power at 132 KV
level. However, as the tariff is not known, it is a detriment to consumers to not upgrade to
132 KV.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 55
Response of APDCL
APDCL submitted that the Commission may consider with detailed submission to assess
the tariff implication.
Commission’s View
Noted. The Commission has already allowed a rebate of 1.5% on energy charge for
consumers availing power at 33 KV and 3% on energy charge for consumers availing
power at 132 KV and above.
Issue 29: Computation of Average Billing Rate
Stakeholders’ Comments
IEX observed that the Petitioner has proposed an increase in the average billing rate for
the HT industries-II category by Rs 1.50/ unit against the approved ABR for FY 2020-21
(almost 18% increase).
IEX requested the Commission to kindly assess the proposed increase of more than Rs.
1.5/ unit in the ABR of industries since the same will impact the operation of industries.
IEX also requested that the Commission may consider above submissions while
computing the Cross Subsidy Surcharge.
Response of APDCL
APDCL replied that the proposed retail supply tariff of APDCL for FY 2021-22 has been
guided by the provisions of the EA 2003, National Electricity Policy (NEP), Tariff Policy
and the MYT Regulations, 2018. It has tried to rationalise the tariff as well as the cross-
subsidy amongst the various consumer categories while proposing tariffs for the various
consumer categories. The proposed tariff for FY 2021-22 is designed so as to keep the
tariffs of most categories are within ±20% of the ACoS, while at the same time it was also
ensured that no category is faced with a tariff shock to the extent possible.
Commission’s View
The matter is discussed in the Tariff Section of this Order.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 56
Issue 30: Dedicated feeders
Stakeholders’ Comments
NETA submitted that the works pertaining to dedicated feeders which were long approved
for Tea Estates and Bought Leaf Tea Factories have been moving at the pace of a
tortoise. NETA further submitted that since the cost is to be borne by the consumer, yet
the initiation and formalities are not taken seriously, for which not only the Tea Industry
has to suffer drastically, but APDCL too loses its prospective revenue by potentially
providing uninterrupted power supply through dedicated feeders.
Furthermore, the respondent submitted that transformer maintenance cost has to be also
borne by the respondent. NETA submitted that the clearances of the transmission lines
too are done at the cost of the consumers. NETA observed that yet APDCL proposes a
hike in fixed charges without providing due service upkeep.
NETA further requested the Commission to provide for conducting a field audit, and
determine whether the transmission lines under various rural electrification schemes are
built as per the original layout as there are recurrent faults in the transmission lines which
result in lower revenue generation for the APDCL.
Response of APDCL
APDCL replied that construction of dedicated tea feeders are carried out under various
projects funded by State Government (UDAY/SOPD/Annual Plan etc.) as well as EAP.
The Commission has constituted a Monitoring Committee to review the progress of
various projects periodically. The Committee also includes member from tea industry. The
respondent may approach competent authority(s) of petitioner in case of any specific
issue.
Commission’s View
Noted.
Issue 31: Overview of the Power Sector in Assam
Stakeholders’ Comments
CAC submitted that In the course of electricity reform the past government liability of
erstwhile ASEB was converted into equity of three companies viz APDCL, AEGCL and
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 57
APGCL. Assets were apportioned and fresh finance was infused as 90% grant and 10%
loan to the companies. However, the state of affairs of the companies today after almost
two decades of initiation of the process is not at all encouraging. APDCL has landed in
such a position that it could hardly manage its ARR without huge government subsidy.
Consumers are suffering due to failure of APGCL to supply cheaper thermal power to
APDCL. AEGCL with limited market has been functioning in a better position although it
has also failed to adhere to voltage regulation, transmission loss norms etc.
In such a situation, CAC suggested that a common road map for all the companies has
become the need of the hour with a common leadership at the top.
In view of the above, the Consumer Advocacy Cell requested the Commission to initiate
a technical and financial study to find out the real state of affairs of the entities and
undertake concrete corrective measures within a specific time frame. CAC observed that
even if tariff as claimed by APDCL in the instant petition is approved, there is hardly any
scope that APDCL would not claim for more subsidies in the next financial year to meet
up its annual revenue requirement. Therefore, the State Government intervention is
indispensable to revitalize the power utilities of Assam. CAC requested the Commission
to send an advisory to the Government of Assam to take action in this regard for the best
interest of the entities and the people of the State.
Response of APDCL
APDCL appreciated the submission of the respondent. APDCL admitted that power sector
in Assam is yet to be self-sufficient as envisaged at the time of reform process. However,
the picture as presented by the respondent is not so gloomy. After the reforms, the
petitioner utility has been able to expand its network to the last mile to cater the demand
of people at every nook and corner of the State. As per the 7th Integrated Rating of State
owned Discoms, APDCL is ranked 17th out of 41. APDCL is making all earnest efforts
within its limited resources to improve its performance and become one of the efficient
utilities in the country.
APDCL submitted that it submitted the petition without factorising any Government
subsidy. However, in case Government provides some subsidy to keep the tariff at a
reasonable level like previous years, the Commission may consider the same at the time
of fixation of tariff.
Commission’s View
Noted.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 58
4 Truing up for FY 2019-20
4.1 Methodology for Truing Up
4.1.1 The Commission had approved the ARR for APDCL for FY 2019-20 in the Tariff Order
dated March 01, 2019.
4.1.2 APDCL submitted the Petition on November 28, 2020 seeking True-up for FY 2019-
20. APDCL submitted the Audited Accounts duly audited by the Statutory Auditor on
January 15, 2021.
4.1.3 The Commission approved the cost parameters through approval of the ARR of FY
2019-20 at the beginning of the year, keeping in view the data available at that point
of time. The cost approvals for each of the items were based on projection of expenses
and revenue before beginning of the year and the provisions of MYT Regulations,
2018, wherever applicable.
4.1.4 The actual cost/values for certain elements/parameters may vary as against the
approved cost during the year due to various controllable and uncontrollable factors.
The Licensee may end up with higher or lower expenditure, as the case may be, at the
end of the year as against the approved cost.
4.1.5 The Commission analyses the actual expenditure for the previous year based on the
audited Annual Accounts of the Licensee and allows/disallows the recovery of the
actual expenditure through the ensuing year’s tariff, subject to prudence check.
4.1.6 In this Chapter, the Commission has carried out the Truing up for FY 2019-20 based
on the submissions of APDCL, audited annual accounts for FY 2019-20 and provisions
of MYT Regulations, 2018.
4.1.7 In this Chapter, the Commission has analysed all the elements of actual expenditure
and revenue of APDCL for FY 2019-20 and undertaken the truing-up of expenses and
revenue in accordance with Regulation 9.1 of the MYT Regulations, 2018. The
Commission has approved the sharing of gains and losses on account of controllable
factors between APDCL and the consumers, in accordance with Regulation 12 of the
MYT Regulations, 2018.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 59
4.2 Energy Sales
4.2.1 APDCL submitted the category-wise energy sales in its Truing Up Petition and stated
that the actual sales were 7257 MU as against approved sales of 7930 MU, as shown
in the Table below:
Table 7: Energy Sales for FY 2019-20 as submitted by APDCL (MU)
Category Name MYT Order dtd
01.03.2019
APDCL Submission
LT GROUP
Jeevan Dhara 0.5 kW &1 kWh/day 819 403
Domestic A-0.5 kW up to 5 kW 3364 3036
Domestic-B -5 kW up to 25 kW 336 358
Commercial Load up to 25 kW 680 757
General Load up to 25 kW 99 135
Public Lighting 13 16
Agriculture up to 25 kW 26 32
Small Industries Rural up to 25 kW 73 79
Small Industries Urban up to 25 kW 30 34
Temporary Supply 9 6
LT TOTAL 5449 4856
HT GROUP
HT Domestic above 25 kW 31 21
HT commercial above 25 kW 382 355
Public Water Works 71 80
Bulk Supply Govt. Edu Inst 76 76
Bulk Supply Others 391 380
HT Small Industries above 25 kW (30 kVA) and up to 50 kVA 23 18
HT Industries-1 50 kVA to 150 kVA 67 93
HT Industries-II above 150 kVA 798 850
Tea, Coffee &Rubber 550 447
Oil & Coal 76 65
HT Irrigation Load above 25 kW (30 kVA) 15 15
HT Electric Crematorium 0.5 0
HT Total 2481 2401
TOTAL 7930 7257
APDCL submitted that the actual total sales are lower by 8% vis-à-vis energy sales
approved as per the Tariff Order dated 1 March, 2019. However, the total sales in FY
2019-20 is 4% higher than the sales in FY 2018-19. Such deviation is primarily driven
by significantly lower consumption by Jeevan Dhara and Domestic-A category as
compared to the approved sales.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 60
4.2.2 APDCL further submitted that the decline in consumption of Jeevan Dhara and
Domestic-A category is due to the impact of distribution of Energy Efficient appliances
at subsidised rates under Ministry of Power flagship programme(s) like Domestic
Efficient Lighting Programme (DELP)/Unnat Jyoti by Affordable LEDs for ALL (UJALA).
Such endeavour has also facilitated significantly in Peak Load Management to the
extent of around 150 MW.
Commission’s Analysis
4.2.3 On scrutiny of the actual Energy Sales submitted by APDCL for FY 2019-20, the
Commission observed that APDCL has reported a substantial reduction in Energy
Sales to Jeevan Dhara category. APDCL has linked the reduction in sales to the
distribution of energy efficient appliances under various schemes. The Commission, in
its previous Orders, has repeatedly stressed on the over-estimation of sales to the
Jeevan Dhara category, and has also highlighted discrepancies in the number of
consumers and sales reported by APDCL to this category.
4.2.4 In FY 2019-20, APDCL has reported significant migration of Jeevan Dhara category
consumers to Domestic A category, once their consumption exceeds the ceiling of 30
units per month. APDCL has shown net addition of 1,23,244 Jeevan Dhara consumers
from April to July 2019, while the net switchover from Jeevan Dhara category to
Domestic A category has been shown as 1,68,359 consumers, from August 2019 to
March 2020. The sales presently reported by APDCL to Jeevan Dhara category are
more logical, as the average consumption works out to 21 units per month for each
consumer as against the ceiling of 30 units per month per consumer.
4.2.5 The Commission has hence, approved the Energy Sales in the truing up for FY 2019-
20, as submitted by APDCL, as shown in the Table below:
Table 8: Energy Sales for FY 2019-20 approved by the Commission (MU)
Category Name MYT Order dt
01.03.2019
APDCL Submission
Approved after
True-up
LT GROUP
Jeevan Dhara 0.5 kW &1 kWh/day 819 403 403
Domestic A 3,364 3,036 3,036
Domestic-B -5 kW up to 25 kW 336 358 358
Commercial Load up to 25 kW 680 757 757
General Load up to 25 kW 99 135 135
Public Lighting 13 16 16
Agriculture up to 25 kW 26 32 32
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 61
Category Name MYT Order dt
01.03.2019
APDCL Submission
Approved after
True-up
Small Industries Rural up to 25 kW 73 79 79
Small Industries Urban up to 25 kW 30 34 34
Temporary Supply 9 6 6
LT TOTAL 5,449 4,856 4,856
HT GROUP
HT Domestic above 25 kW 31 21 21
HT commercial above 25 kW 382 355 355
Public Water works 71 80 80
Bulk Supply Govt. Edu Inst 76 76 76
Bulk Supply Others 391 380 380
HT Small Industries above 25 kW (30 kVA) and up to 50 kVA 23 18 18
HT Industries-1 50 kVA to 150 kVA 67 93 93
HT Industries-II above 150 kVA 798 850 850
Tea, Coffee &Rubber 550 447 447
Oil & Coal 76 65 65
HT Irrigation Load above 25 kW (30 kVA) 15 15 15
HT Temporary - - -
HT Electric Crematorium 0.5 - -
HT Electric Vehicle Charging Station - - -
HT Total 2,481 2,401 2,401
TOTAL 7,930 7,257 7,257
Accordingly, the Commission approves the total energy sales of 7,257 MU in the
Truing up for FY 2019-20.
4.3 Distribution Loss
4.3.1 APDCL, in its Petition, submitted that it has achieved distribution loss level of 19.06%
in FY 2019-20, as against the approved level of 16%.
4.3.2 APDCL submitted that over the years, it has been able to reduce the losses gradually,
except in FY 2009-10, FY 2011-12 and FY 2018-19. APDCL stated that the increase
in Distribution Losses in these years are primarily on account of enhancement of Low
Tension (LT) networks under RGGVY/DDUGJY without adequate High Tension (HT)
infrastructure. Further, in FY 2018-19, due to implementation of massive household
electrification carried out under Govt. of India’s flagship programme SAUBHAGYA, the
losses increased.
4.3.3 APDCL submitted that the ratio of primary line length to its concerned secondary
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 62
distribution line length is one of the important factors that influence the performance of
primary distribution. Over the years, large scale rural electrification programme has
resulted in considerable expansion of LT distribution network. The size of the
distribution transformers has been constantly increasing. As a result, the length of LT
lines/circuits is also increasing, resulting in high losses in LT lines, excessive voltage
drops, frequent faults on LT network and higher rate of failure of distribution
transformers. The LT-HT ratio of APDCL in terms of distribution infrastructure is 3.17:1
against the desired ratio of 1:1.2.
4.3.4 APDCL further submitted that the manpower strength of APDCL is badly affected with
pendency of recruitment processes initiated during 2018 due to various litigations.
Meanwhile, consumer base vis-à-vis infrastructure has experienced a huge surge
particularly due to SAUBHAGYA. The number of employees per thousand consumers
has significantly dropped from 2.95 in FY 2016-17 to 1.41 in FY 2019-20, with
implementation of SAUBHAGYA.
4.3.5 APDCL added that due to manifold increase in LT consumers, deferred implementation
of various schemes as per the approved Capital Investment Plan, inverse LT:HT ratio,
age of assets and restricted allowance of Repair & Maintenance (R&M) expenses,
APDCL is not able to maintain the Distribution Loss levels.
4.3.6 APDCL submitted that considering the actual distribution loss levels of previous years,
manifold increase in LV consumers, deferred implementation of various schemes as
per the approved Capital Investment Plan, age of assets, restricted R&M allowance as
per the MYT Regulations,2018 and inverse HT:LT ratio, the actual Distribution Loss of
19.06% should be approved in the true-up for FY 2019-20.
Commission’s Analysis
4.3.7 The Commission had approved the Distribution Loss of 16% for FY 2019-20 in its MYT
Order dated March 01, 2019.
4.3.8 The Commission had approved distribution loss of 16.85 % at the time of Truing-up of
FY 2018-19, as against the actual Distribution Loss of 19.70%. APDCL has now
reported a reduction in Distribution Loss level to 19.06% for FY 2019-20 as compared
to actual Distribution Loss in FY 2018-19.
4.3.9 The Commission also sought information on circle-wise distribution losses from
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 63
APDCL, which was submitted by APDCL. From this data, it can be seen that apart
from the 5 Circles of Guwahati – I, Guwahati – II, Rangia, Marigaon, and Tezpur, all
the remaining 14 Circles have reported Distribution Losses higher than the approved
level of 16%. The simple average of Distribution Losses in these 14 Circles is 23.92%,
with the reported Losses as high as 35.36% in Badarpur, followed by Kokrajhar with
32.81%, and Bongaigaon with 28.12%. This clearly shows that there is scope for lot of
improvement in terms of Distribution Losses, and APDCL should not maintain that the
Losses are already very low and that it is difficult to reduce it further.
4.3.10 Further, it can be observed that the contention of APDCL regarding worsening HT:LT
ratio resulting in increase in Distribution Losses, is not borne out by APDCL’s own
reported performance over the last 3-4 years. Though HT:LT ratio has steadily
worsened, APDCL has reported reduction in Distribution Losses in most of the years.
4.3.11 Distribution Loss being a controllable parameter as elaborated in the MYT Order
dated 01.03.2019 of the Commission, the Distribution Loss level is kept at the
approved level of 16.00% for truing up of FY 2019-20. The efficiency loss on
account of higher than approved Distribution Losses, in terms of excess power
purchase expenses, have been shared between APDCL and the consumers, as
discussed subsequently in this Chapter.
4.4 Energy Requirement
4.4.1 APDCL submitted that the total energy requirement for sale of 7257 MU to retail
consumers and considering 1520 MU of surplus energy sale outside the State in FY
2019-20 was 10941 MU excluding Open Access consumption, against the approved
energy requirement of 10093 MU. The energy requirement has been computed based
on the actual sales, actual Distribution Losses, actual inter-State and intra-State
Transmission Losses, and surplus energy sale outside the State, as shown in the Table
below:
Table 9: Energy Requirement for True-Up for FY 2019-20 as submitted by APDCL (MU)
Sl.
No. Particulars
MYT
Order dt.
01.03.2019
APDCL
Submission
1 Energy Sales 7,930 7,257
2 Distribution Loss (%) 16.00% 19.06%
3 Energy Requirement at Distribution periphery 9,440 8,966
4 Intra-State (AEGCL) Transmission Loss (%) 3.39% 3.46%
5 Energy input to Transmission System 9,771 9,287
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 64
Sl.
No. Particulars
MYT
Order dt.
01.03.2019
APDCL
Submission
6 Sale of Surplus Energy outside the State 182 1,520
7 Inter-State (PGCIL) Pooled Loss (%) 1.40% 1.42%
8 Total Energy Requirement 10,092 10,941
Commission’s Analysis
4.4.2 The Commission has approved the energy requirement on the basis of approved
sales, approved Distribution Losses, actual Transmission Loss of AEGCL for FY 2019-
20, and proportionate PGCIL Losses on external power purchase for the respective
year.
4.4.3 The Commission sought SLDC verification for the intra-State Transmission Loss.
SLDC, vide its communication dated 26 January, 2021, submitted that the energy
accounting for FY 2019-20 has been reconciled with APDCL, and the verified intra-
State Transmission Losses for FY 2019-20 are 3.46%. The Commission has
considered the actual Transmission Loss of AEGCL for FY 2019-20, as against the
approved transmission loss for FY 2019-20, for approving the energy requirement for
APDCL. The Commission is of the view that APDCL should not be penalized for non-
achievement of approved Transmission Loss by AEGCL.
4.4.4 It may be noted that the actual quantum of Surplus Power sold outside the State has
been considered while computing the Energy Balance, and the revenue from the same
has been considered under Other Income, as discussed subsequently in this Order.
4.4.5 The gross Energy Requirement approved by the Commission in the truing up for FY
2019-20 is shown in the following Table:
Table 10: Energy Requirement approved by the Commission after True-Up for FY 2019-
20 (MU)
Sl.
No. Particulars
MYT Order
dtd
01.03.2019
APDCL
Submission
Approved
after
True-up
1 Energy Sales 7,930 7,257 7,257
2 Distribution Loss (%) 16.00% 19.06% 16.00%
3 Distribution Loss (MU) 1,510 1,709 1,382
4 Energy Requirement at Distribution periphery 9,440 8,966 8,639
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 65
Sl.
No. Particulars
MYT Order
dtd
01.03.2019
APDCL
Submission
Approved
after
True-up
5 Intra-State (AEGCL) Transmission Loss (%) 3.39% 3.46% 3.46%
6 Intra-State (AEGCL) Transmission Loss (MU) 331 321 310
7 Energy input to Transmission System 9,771 9,287 8,949
8 Sale of Surplus Energy outside the State 182 1,520 1,520
9 Inter-State (PGCIL) Pooled Loss (%) 1.40% 1.42% 1.42%
10 Inter-State (PGCIL) Pooled Loss (MU) 139 134 130
11 Total Energy Requirement 10,092 10,941 10,597
Therefore, the Commission approves Energy Requirement of 10,597 MU for sale
of 7257 MU to retail consumers in the truing up for FY 2019-20.
4.5 Power Purchase
4.5.1 APDCL submitted that power procurement of APDCL is predominantly dependent on
the State Generating Stations of Assam Power Generation Company Limited (APGCL)
and Central Sector Generating Stations (CSGS) to meet its base load. Around 31 %
of power is allocated from hydro power stations with seasonal volatility. In order to
meet the peak demand of the State, APDCL was required to procure additional power
on short-term basis through Traders and from Power Exchanges.
4.5.2 APDCL submitted that it has incurred an amount of Rs.5530.19 Crore against the
approved power purchase cost of Rs.4722.41 Crore for FY 2019-20. APDCL
purchased 10940.85 MU as against 10092.21 MU approved in the Tariff Order.
4.5.3 APDCL submitted the following reasons for increase in power purchase cost:
a) 8% increase in quantum with respective cost increase by 17% over approved
level.
b) Significant variation in performance of APGCL, as APGCL has contributed only
13% of energy requirement of APDCL against approved 22%.
c) Lower energy generation by APGCL not only led to higher cost of APGCL, but
also procurement of power from other Bilateral Sources / Power Exchanges at
average price of Rs. 4.21/kWh, which is 42% costlier, with added losses.
d) Although performance of CSGS was better than the approved level, higher
generation from costlier stations like NTPC Bongaigaon and unfortunate
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 66
stoppage of cheapest stations of NEEPCO Kopili has added to the cost.
e) Commissioning of Mangdechu HEP (Bhutan) with higher than average
approved tariff has added to the cost after adjustment with tariff approved for
Nikachchu.
f) PGCIL charges have increased by 44% over approved level.
4.5.4 Rebate on timely payment of power purchase of Rs.25.47 Crore has been considered
under the head of ‘Other Income’. The following Table shows the power purchase
quantum and cost claimed by APDCL in its Petition:
Table 11: Power Purchase for FY 2019-20 as submitted by APDCL (MU)
Sl. No.
Agency/Source FY 2019-20
MYT Order dt. 01.03.2019 APDCL Petition
Quantum (MU)
Total Cost (Rs
Cr)
Rs/kWh Quantum (MU)
Total Cost (Rs
Cr)
Rs/kWh
1 APGCL 2,337.57 706.70 3.02 1,497.90 498.21 3.33
2 NEEPCO (HYDRO) KOPILI I 422.79 44.78 1.06 380.80 42.35 1.11 KOPILI II 51.76 6.43 1.24 53.32 3.17 0.59 KHANDONG 111.29 17.59 1.58 102.89 8.70 0.85 RHEP 548.20 88.73 1.62 550.91 123.76 2.25 DHEP 97.97 45.53 4.65 74.98 42.91 5.72
KAMENG 225.41 99.61 4.42
3 NEEPCO (TH)
AGBPP 788.12 292.07 3.71 938.43 379.56 4.04 AGTPP 176.61 79.81 4.52 336.91 142.85 4.24 AGTPP-2 84.05 13.46 1.60
4 NHPC Existing Lg HEP 216.58 57.73 2.67 102.35 45.21 4.42
5 NTPC (Existing) FARAKKA 229.30 80.38 3.51 227.30 92.06 4.05 KAHELGAON - I 111.51 57.52 5.16 114.60 40.75 3.56 KAHELGAON -II 469.42 146.06 3.11 492.27 164.19 3.34 TALCHER 151.07 34.65 2.29 184.68 41.52 2.25
6 NTPC (New) BTPS 1,530.58 959.03 6.27 2,691.97 1,594.38 5.92
NTPC BTPS III 565.87 354.57 6.27
7 MeECL 2.17 1.55 7.14 0.04 0.01 2.50
8 Pare HEP 128.35 54.35 4.23 187.83 94.56 5.03
9 Suryatap Solar 4.19 3.68 8.78 6.06 5.32 8.78
11 JNNSM Bundled Solar power
8.74 10.38 11.88 7.74 9.61 12.42
12 SECI Solar 34.95 22.63 6.47 38.39 23.77 6.19
13 JNNSM Bundled Coal power
35.09 9.80 2.79 51.68 19.77 3.83
14 Bilateral Sources/Traders
627.20 269.67 4.30
15 Power Exchanges 504.82 206.78 4.10
16 OTPC 1,388.14 469.41 3.38 1,252.27 392.39 3.13
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 67
Sl. No.
Agency/Source FY 2019-20
MYT Order dt. 01.03.2019 APDCL Petition
Quantum (MU)
Total Cost (Rs
Cr)
Rs/kWh Quantum (MU)
Total Cost (Rs
Cr)
Rs/kWh
17 HHPCPL (Champawati) 14.66 6.33 4.32 5.35 2.20 4.11
18 Wind Power PTC 87.16 30.77 3.53 86.85 30.66 3.53
19 SECI Wind 87.16 23.71 2.72 75.98 20.67 2.72
20 Mangdechhu 207.13 96.64 4.67
21 PTC Nikachu 139.81 58.05 4.15
22 SPV Assam 43.69 14.53 3.33
23 Power Swapping Arrangement 7.19 0.19 0.26
Sub-total: 10,092.21 3,789.84 3.76 10,807.84 4,391.86 4.06
24 REC (Solar) 24.75 40.70
25 REC (Non-Solar) 5.96 -
26 Deviation Settlement Mechanism
132.98 73.91 5.56
Sub-total: 10,092.21 3,820.55 3.79 10,940.82 4,506.47 4.12
27 AEGCL Cost 360.84 251.00 0.23
28 SLDC Charges 3.85
29 PGCIL Transmission Charges
537.18 772.71
TOTAL 10,092.21 4,722.42 4.68 10,940.82 5,530.18 5.05
30 Less: Delayed Payment Charge
4.83
Net Power Purchase 10,092.21 4,722.42 4.68 10,940.82 5,525.35 5.05
Commission’s Analysis
4.5.5 The Commission has reconciled the amounts shown by APDCL as cost of power
purchase from APGCL and Transmission Charges payable to AEGCL, against the
amount of revenue shown by APGCL and AEGCL, respectively, for FY 2019-20. The
Commission observed that there are certain differences in the amounts claimed as
expenses by APDCL and the amounts shown as revenue by APGCL and AEGCL,
respectively. This difference is due to difference in revenue/cost recognition methods
adopted by APGCL, AEGCL and APDCL, with APGCL and AEGCL considering
revenue based on bills raised, while APDCL considers cost based on bills accepted.
4.5.6 As the true-up for APGCL, AEGCL and SLDC has been done by considering the
Revenue reported in their Audited Accounts for FY 2019-20, the Commission has
considered the amounts shown as revenue by APGCL, AEGCL, and SLDC as the cost
of power purchase from APGCL and the Transmission Charges paid/payable to
AEGCL, respectively. Similarly, the quantum of net generation shown by APGCL has
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 68
been considered as the net purchase by APDCL from APGCL. The Commission has
consistently been following this approach in the true-up of respective years, and over
the years, the differences will even out.
4.5.7 The Commission has not considered the Delayed Payment Charge of Rs. 4.83 Crore,
as recorded in the Audited Accounts of FY 2019-20, as the Delayed Payment Charge
is a penal payment and cannot be passed on to the consumers. The treatment of the
rebate earned by APDCL on timely payment of power purchase bills has been
elaborated under the head of ‘Other Income’.
4.5.8 The remaining source-wise purchases have been accepted as submitted by APDCL.
The summary of power purchase quantum and cost approved after true-up for FY
2019-20, is summarized in the Table below:
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 69
Table 12: Power Purchase approved by the Commission after True-Up for FY 2019-20
Sl. No.
Agency/Source
FY 2019-20
MYT Order dt. 01.03.2019 APDCL Petition Approved after True-up
Quantum (MU)
Total Cost (Rs Cr)
Rs/kWh Quantum
(MU) Total Cost
(Rs Cr) Rs/kWh
Quantum (MU)
Total Cost (Rs Cr)
Rs/kWh
1 APGCL 2,337.57 706.70 3.02 1,497.90 498.21 3.33 1,505.58 501.67 3.33 2 NEEPCO (HYDRO)
KOPILI I 422.79 44.78 1.06 380.80 42.35 1.11 380.80 42.35 1.11
KOPILI II 51.76 6.43 1.24 53.32 3.17 0.59 53.32 3.17 0.59
KHANDONG 111.29 17.59 1.58 102.89 8.70 0.85 102.89 8.70 0.85
RHEP 548.20 88.73 1.62 550.91 123.76 2.25 550.91 123.76 2.25
DHEP 97.97 45.53 4.65 74.98 42.91 5.72 74.98 42.91 5.72
KAMENG 225.41 99.61 4.42 _ _ _ _ _ _ 3 NEEPCO (TH)
AGBPP 788.12 292.07 3.71 938.43 379.56 4.04 938.43 379.56 4.04
AGTPP 176.61 79.81 4.52 336.91 142.85 4.24 336.91 142.85 4.24
AGTPP-2 84.05 13.46 1.60 4 NHPC Existing Lg HEP 216.58 57.73 2.67 102.35 45.21 4.42 102.35 45.21 4.42 5 NTPC (Existing)
FARAKKA 229.30 80.38 3.51 227.30 92.06 4.05 227.30 92.06 4.05
KAHELGAON - I 111.51 57.52 5.16 114.60 40.75 3.56 114.60 40.75 3.56
KAHELGAON -II 469.42 146.06 3.11 492.27 164.19 3.34 492.27 164.19 3.34
TALCHER 151.07 34.65 2.29 184.68 41.52 2.25 184.68 41.52 2.25 6 NTPC (New) BTPS 1,530.58 959.03 6.27 2,691.97 1,594.38 5.92 2,691.97 1,594.38 5.92
NTPC BTPS III 565.87 354.57 6.27 7 MeECL 2.17 1.55 7.14 0.04 0.01 2.50 0.04 0.01 2.50 8 Pare HEP 128.35 54.35 4.23 187.83 94.56 5.03 187.83 94.56 5.03 9 Suryatap Solar 4.19 3.68 8.78 6.06 5.32 8.78 6.06 5.32 8.78
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 70
Sl. No.
Agency/Source
FY 2019-20
MYT Order dt. 01.03.2019 APDCL Petition Approved after True-up
Quantum (MU)
Total Cost (Rs Cr)
Rs/kWh Quantum
(MU) Total Cost
(Rs Cr) Rs/kWh
Quantum (MU)
Total Cost (Rs Cr)
Rs/kWh
11 JNNSM Bundled Solar power 8.74 10.38 11.88 7.74 9.61 12.42 7.74 9.61 12.42 12 SECI Solar 34.95 22.63 6.47 38.39 23.77 6.19 38.39 23.77 6.19 13 JNNSM Bundled Coal power 35.09 9.80 2.79 51.68 19.77 3.83 51.68 19.77 3.83 14 Bilateral Sources/Traders 627.20 269.67 4.30 627.20 269.67 4.30 15 Power Exchanges 504.82 206.78 4.10 504.82 206.78 4.10 16 OTPC 1,388.14 469.41 3.38 1,252.27 392.39 3.13 1,252.27 392.39 3.13 17 HHPCPL (Champawati) 14.66 6.33 4.32 5.35 2.20 4.11 5.35 2.20 4.11 18 Wind Power PTC 87.16 30.77 3.53 86.85 30.66 3.53 86.85 30.66 3.53 19 SECI Wind 87.16 23.71 2.72 75.98 20.67 2.72 75.98 20.67 2.72 20 Mangdechhu 207.13 96.64 4.67 207.13 96.64 4.67 21 PTC Nikachu 139.81 58.05 4.15 22 SPV Assam 43.69 14.53 3.33 23 Power Swapping
Arrangement 7.19 0.19 0.26 7.19 0.19 0.26
Sub-total: 10,092.21 3,789.84 3.76 10,807.84 4,391.86 4.06 10,815.52 4,395.34 4.06
24 REC (Solar) 24.75 40.70 40.70
25 REC (Non-Solar) 5.96 -
26 Deviation Settlement Mechanism
132.98 73.91 5.56 132.98 73.91 5.56
Sub-total: 10,092.21 3,820.55 3.79 10,940.82 4,506.47 4.12 10,948.50 4,509.95 4.12
27 AEGCL Cost 360.84 251.00
251.81
28 SLDC Charges 3.85 3.85
29 PGCIL Transmission Charges 537.18 772.71
772.71
TOTAL 10,092.21 4,722.42 4.68 10,940.82 5,530.18 5.05 10,948.50 5,538.32 5.06
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 71
Sl. No.
Agency/Source
FY 2019-20
MYT Order dt. 01.03.2019 APDCL Petition Approved after True-up
Quantum (MU)
Total Cost (Rs Cr)
Rs/kWh Quantum
(MU) Total Cost
(Rs Cr) Rs/kWh
Quantum (MU)
Total Cost (Rs Cr)
Rs/kWh
30 Less: Delayed Payment Charge
4.83 4.83
Net Power Purchase 10,092.21 4,722.42 4.68 10,940.82 5,525.35 5.05 10,948.50 5,533.49 5.05
Therefore, the Commission approves Power Purchase Expenses of Rs. 5533.49 Crore in the truing up for FY 2019-20.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 72
4.6 Sharing of Gains/(Losses) on account of excess Power Purchase cost
due to higher than approved Distribution Losses
4.6.1 As the actual Distribution Losses are higher than the approved Distribution Losses for
FY 2019-20, the efficiency loss on account of higher than approved Distribution
Losses, in terms of excess power purchase expenses, have been shared between
APDCL and the consumers, as shown in the Table below:
Table 13: Sharing of Efficiency Gain/(Loss) on account of Distribution Losses
approved by the Commission (Rs. Crore)
Particulars Unit APDCL Approved after
True-up
Total Power Purchase MU 10,941 10,949
Trading Sale MU 1,520 1,520
Energy Purchased for sale within
State MU 9,421 9,429
Allowable Energy Purchase for sale
within State MU 9,078 9,078
Excess Energy Purchase MU 344 351
Average power purchase rate Rs/kWh 4.08 4.12
Excess Power Purchase Cost Rs. Crore (140.24) (144.74)
Share of gain/(loss) to be borne by
APDCL Rs. Crore
(93.41)
(96.49)
Share of gain/(loss) to be borne by
consumers Rs. Crore (46.70) (48.25)
Therefore, the Commission disallows two third of the excess power purchase
cost, i.e., Rs. 96.49 crore in the truing up for FY 2019-20, which will be borne by
APDCL, and one third of the excess power purchase cost, i.e., Rs. 48.25 Crore is
passed on to the consumers as per the MYT Regulations, 2018.
4.7 O&M Expenses
4.7.1 APDCL has claimed O&M expenses of Rs. 921.70 Crore against the approved O&M
expenses of Rs. 1049.79 Crore for FY 2019-20, as shown in the following Table:
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 73
Table 14: O&M Expenses for FY 2019-20 as submitted by APDCL (Rs. Crore)
Sl. No.
Particulars MYT Order dt.
01.03.2019 APDCL
1 Employee Expenses 850.68 733.00
2 R&M Expenses 149.97 148.84
3 Administrative & General (A&G) Expenses 49.14 39.86
4 Total O&M expenses 1,049.79 921.70
Employee Expenses
4.7.2 APDCL submitted that against the normative Employee expenses of Rs.850.68 Crore
approved in the Tariff Order dated March 01,2019, the actual Employee expenses
incurred is Rs. 682.36 Crore as per Audited Accounts.
4.7.3 APDCL submitted that Employee Expenses comprise salaries, dearness allowance,
bonus, terminal benefits in the form of contribution for pension and gratuity funding,
leave encashment, and staff welfare expenses.
4.7.4 Considering the stalemate of recruitment process due to legal complications, no
growth is considered and growth factor is taken as 0% against the approved growth
factor of 1%.
4.7.5 APDCL submitted the computation of normative employee expenses for FY 2019-20
as shown in the Table below:
Table 15: Normative Employee Expenses for FY 2019-20 as submitted by APDCL (Rs.
Crore)
Particulars MYT Order
dt. 01.03.2019 APDCL
Employee Expenses for previous year 811.62 703.34
Growth Factor 1% 0%
Consumer Price Index (CPI) Inflation 3.77% 4.22%
Employee Expenses 850.68 733.00
Repair & Maintenance (R&M) Expenses
4.7.6 APDCL submitted that as against the normative R&M expenses of Rs.149.97 Crore
approved in the Tariff Order dated March 01, 2019, the actual R&M expenses incurred
is Rs. 146.07 Crore.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 74
4.7.7 APDCL submitted that R&M expenses are directly related to volume of operations
carried out. Manifold expansion of network with implementation of various
electrification programmes, viz., RGGVY/DDUGJY, SAUBHAGYA, IPDS, TDF and
EAP, necessitate extensive coverage for such works. However, adequate
maintenance of assets could not be carried out in time due to restricted allowance in
tariff for many previous years.
4.7.8 APDCL has computed the normative R&M expenses of Rs. 148.84 Crore on the basis
of “K” factor and Wholesale Price Index (WPI) index, as shown in the following Table:
Table 16: Normative R&M Expenses for FY 2019-20 as submitted by APDCL (Rs. Crore)
Particulars MYT Order
dt. 01.03.2019 APDCL
Average GFA for previous year 4,159.82 4,129.59
K Factor 3.50% 3.50%
WPI Inflation 3.00% 2.98%
R&M Expenses 149.97 148.84
Administrative and General (A&G) Expenses
4.7.9 APDCL submitted that A&G Expenses comprise rents, taxes, various statutory
charges, telephone and other communication expenses, professional charges, legal
charges, conveyance and travelling allowance, etc. Payment of fees to the
Commission amounting to Rs. 3.74 Crore is considered separately, in line with the
Commission’s approval in the APR of FY 2019-20.
4.7.10 APDCL submitted that the actual A&G Expenses are Rs.82.25 Crore, as per Audited
Accounts, as against approved normative A&G expenses of Rs. 49.14 Crore approved
in the MYT Order.
4.7.11 APDCL computed the normative A&G expenses of Rs. 39.86 Crore based on WPI and
provision, as shown in the following Table:
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 75
Table 17: Normative A&G Expenses for FY 2019-20 as submitted by APDCL (Rs. Crore)
Particulars MYT Order
dt. 01.03.2019 APDCL
A&G Expenses for Previous Year 45.76 33.13
WPI Inflation 3% 2.98%
Provision 2.00 2.00
Statutory Fees - 3.74
A&G Expenses 49.14 39.86
Commission’s Analysis
4.7.12 The Commission in the MYT Order dated March 1, 2019 has allowed O&M Expenses
on normative basis. For the purpose of truing up for FY 2019-20, the Commission has
computed the normative O&M Expenses as per Regulation 37 of the MYT Regulations,
2018. Any variation between normative O&M expenses and actual O&M Expenses
has been considered under sharing of gains/losses on account of controllable items
as per Regulation 12 of the MYT Regulations, 2018.
4.7.13 For computation of normative employee expenses for FY 2019-20, the Commission
has adopted the following approach:
a) The employee expenses approved after True-up for FY 2018-19 have been
considered as base expenses;
b) CPI inflation has been computed as average increase of CPI index for the period
from FY 2016-17 to FY 2018-19, which works out to 4.22%;
c) The growth factor has been considered as 0% against approved growth factor of
1%, as there has been a decline rather than growth in the number of employees.
4.7.14 The normative employee expenses approved in the true-up for FY 2019-20 are shown
in the following Table:
Table 18: Approved Employee Expenses for FY 2019-20 (Rs. Crore)
Particulars MYT Order dt.
01.03.2019
APDCL Approved
after true-up
Employee Expenses for
Previous Year
811.62 703.34 703.34
Growth Factor 1% 0% 0%
CPI Inflation 3.77% 4.22% 4.22%
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 76
Particulars MYT Order dt.
01.03.2019
APDCL Approved
after true-up
Employee Expenses 850.68 733.00 733.00
Therefore, the Commission approves Normative Employee Expenses of Rs. 733
Crore in the true-up for FY 2019-20.
4.7.15 For computation of normative R&M Expenses for FY 2019-20, the Commission has
considered the following approach:
a) The Commission has considered the average increase of WPI of FY 2016-17 to
FY 2018-19, i.e., 2.97 % for computation of R&M expenses;
b) The Commission has adopted the K-factor approved for the Control Period, i.e.,
3.50%;
c) Since, K-factor has been considered on the basis of average Gross Fixed Assets
(GFA), for computation of R&M expenses for FY 2019-20, average GFA for
previous years has been considered.
4.7.16 The normative R&M expenses approved in the true-up for FY 2019-20 are shown in
the following Table:
Table 19: Approved R&M Expenses for FY 2019-20 (Rs. Crore)
Particulars MYT Order dt.
01.03.2019 APDCL
Approved
after True-up
Average GFA for previous year 4159.82 4,129.59 4,129.59
K Factor 3.50% 3.50% 3.50%
WPI Inflation 3% 2.98% 2.97%
R&M Expenses 149.97 148.84 148.83
Accordingly, the Commission approves R&M Expenses of Rs. 148.83 Crore in
the true-up for FY 2019-20.
4.7.17 For computation of normative A&G expenses for FY 2019-20, the Commission has
adopted the following approach:
a) The A&G expenses approved after True-up for FY 2018-19 have been considered
as base expenses;
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 77
b) As stated earlier, the WPI inflation has been considered as 2.97 %, for computation
of A&G expenses;
c) The provision of Rs. 2 crore allowed additionally against special initiatives has been
allowed, as APDCL has submitted details of actual expenditure of Rs. 3.28 crore
under this head;
d) The statutory fees of Rs. 3.74 crore have been allowed at actuals, in line with the
approach adopted in the APR for FY 2019-20.
4.7.18 The A&G expenses approved in the true-up for FY 2019-20 are shown in the following
Table:
Table 20: Approved A&G Expenses for FY 2019-20 (Rs. Crore)
Particulars MYT Order dt.
01.03.2019 APDCL
Approved after
True-up
A&G Expenses for Previous
Year
45.76 33.13 34.60
WPI Inflation 3.00% 2.98% 2.97%
Provision 2.00 2.00 2.00
Statutory Fee - 3.74 3.74
A&G Expenses 49.14 39.86 41.37
Therefore, the Commission approves A&G Expenses of Rs. 41.37 crore in the
true-up for FY 2019-20.
4.7.19 The normative O&M expenses approved by the Commission in the true-up for FY
2019-20 is shown in the following Table:
Table 21: Normative O&M Expenses approved by Commission for FY 2019-20 (Rs. Crore)
Sl.
No. Particulars
MYT Order dt.
01.03.2019
APDCL
submission
Approved after
True-up
1 Employee Expenses 850.68 733.00 733.00
2 R&M Expenses 149.97 148.84 148.83
3 A&G Expenses 49.14 39.86 41.37
Total 1,049.79 921.70 923.21
4.8 Sharing of Efficiency Gains/(Losses) on account of O&M Expenses
4.8.1 Regulation 10.2 of MYT Regulations, 2018 specifies O&M Expenses (excluding
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 78
terminal liabilities with regard to employees on account of changes in pay scales or
dearness allowance due to inflation) as a controllable factor. APDCL has submitted
the sharing of gains/(losses) on account of O&M Expenses for FY 2019-20, as shown
in the Table below. No sharing of gains and losses has been considered for terminal
benefits.
Table 22: Sharing of gains or losses for O&M Expenses for FY 2019-20 as submitted by
APDCL (Rs. Crore)
Sl. No.
Particulars Actual Normative
Gains/ (Losses)
1/3 of Gains/
(Losses)
A B C = (B-A) D = C x 1/3
1 Employee Cost 682.36 733.0 50.64 16.88
Less: Terminal Benefits
104.38 104.38
Employee Cost excl. Terminal Benefits
577.98 628.62 50.64 16.88
2 R&M Expenses 146.07 148.84 2.77 0.92
3 A&G Expenses 82.25 39.86 (42.40) (14.13)
4 TOTAL 910.68 921.69 11.02 3.67
Commission’s Analysis
4.8.2 The Commission has considered sharing of gains or losses after excluding terminal
liabilities from normative as well as actual employee expenses. Accordingly, terminal
liabilities are allowed on actual basis.
4.8.3 The sharing of gains/(losses) on account of O&M Expenses approved by the
Commission in the true-up for FY 2019-20, is shown in the following Table:
Table 23: Sharing of gains/(losses) for O&M Expenses approved by the Commission
for FY 2019-20 (Rs. Crore)
Sl. No.
Particulars Actual Normative
Gains/ (Losses)
1/3 of Gains/ (Losses)
A B C = (B-A) D = C x 1/3
1 Employee Cost 682.36 733.00 50.64 16.88
Less: Terminal Benefits 104.38 104.38 0 0
Employee Cost excl. Terminal Benefits
577.98 628.62 50.64 16.88
2 R&M Expenses 146.07 148.84 2.77 0.92
3 A&G Expenses 82.25 41.37 (40.88) (13.63)
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 79
Sl. No.
Particulars Actual Normative
Gains/ (Losses)
1/3 of Gains/ (Losses)
A B C = (B-A) D = C x 1/3
4 TOTAL 806.30 818.84 12.54 4.18
4.8.4 Since, actual O&M expenses are lower than the normative O&M expenses, 1/3rd of the
net gain, i.e., Rs 4.18 Crore, has been reduced from the ARR, after considering O&M
expenses on normative basis.
4.9 Capital Investment & Capitalisation
4.9.1 APDCL submitted that it has achieved actual Capital Expenditure of Rs. 1687.34 Crore
and Capitalization of Rs. 1343.10 Crore [including Rs. 1295.54 Crore through
capitalisation of Capital Work in Progress (CWIP) Schemes] during FY 2019-20, as
against the capitalisation of Rs. 650 crore approved by the Commission in the MYT
Order.
4.9.2 APDCL submitted that increase in Capital Expenditure is primarily due to
materialization of funding against projects executed under RGGVY XIIth Plan,
DDUGJY, SAUBHAGYA, IPDS, and EAP.
4.9.3 The following Table shows the Capital Expenditure and Capitalization achieved by
APDCL in FY 2019-20:
Table 24: Capital Expenditure and Capitalization submitted by APDCL (Rs. Crore)
Particulars MYT Order dt.
01.03.2019 APDCL submission
Capital Expenditure 1000.00 1687.34
Capitalisation 650.00 1343.10
Note: Capitalisation considered based on clarification submitted by APDCL vide its replies dated 25 January, 2021
Commission’s Analysis
4.9.4 APDCL was asked to submit the actual scheme-wise capital expenditure and
capitalisation achieved in FY 2019-20, which was submitted by APDCL. APDCL further
submitted that the net addition to Gross Fixed Assets (GFA) for the purpose of
computing depreciation was Rs. 59.09 Crore, while capitalisation of Rs. 1283.88 Crore
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 80
is towards assets not belonging to APDCL, and Rs. 0.13 Crore is funded by Consumer
Contribution.
4.9.5 The Commission has verified the Capitalisation amounts from the Audited Accounts of
APDCL for FY 2019-20. The Commission has considered the actual capitalisation
based on the Audited Accounts in the true-up for FY 2019-20. Accordingly, the Capital
Expenditure and Capitalisation approved by the Commission in the true-up for FY
2019-20 is shown in the following Table:
Table 25: Capital Expenditure and capitalisation approved by the Commission (Rs.
Crore)
Particulars Tariff Order dt.
01.03.2019
APDCL Approved
after True-up
Capital Expenditure 1000.00 1687.34 1687.34
Capitalisation 650.00 1343.10 1343.09
4.9.6 As regards the funding of capitalisation, the Commission has not considered any equity
funding. The grant funding has been considered as per the Audited Accounts, equal
to the assets capitalised but not belonging to APDCL, and the balance has been
considered as funded through debt. The funding of capitalized works, as approved by
the Commission in the true-up for FY 2019-20, is shown in the following Table:
Table 26: Funding of Capitalised Works approved by the Commission (Rs. Crore)
Particulars Approved
after True-up
Grant 1284.01
Equity -
Debt 59.08
Total Capitalisation 1343.09
Therefore, the Commission approves total Capitalisation of Rs. 1343.09 crore in
the true-up for FY 2019-20.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 81
4.10 Depreciation
4.10.1 APDCL submitted that Opening Gross Fixed Assets (GFA) for FY 2019-20 as per the
statement of accounts is Rs. 4435.55 Crore and depreciable assets are Rs. 2414.79
Crore.
4.10.2 APDCL submitted that Depreciation has been calculated taking into consideration the
opening GFA as well as addition of assets during FY 2019-20 as per Audited Accounts.
APDCL submitted that the truing up claim of depreciation is based on the depreciation
rates specified in the MYT Regulations, 2018, as shown in the Table below:
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 82
Table 27: Depreciation Calculation for FY 2019-20 as submitted by APDCL (Rs. Crore)
(Gross Fixed Assets) Depreciation
Particulars As on
01.04.19 Net addition
during the year Rate of
Dep Accumulated as on 01.04.19
Assets fully depreciated
On Opening Balance
On Addition
Total
Land & Rights
i) Land owned under full title 18.59 0.15 - - - -
ii) Leasehold land 2.84 - 3.34% 0.14 0.09 - 0.09
Sub-total: 21.43 0.15 0.14 - 0.09 - 0.09
Building 55.91 1.06 3.34% 24.10 17.38 1.16 0.02 1.17
Other Civil Works 56.77 1.85 3.34% 26.72 20.20 1.10 0.03 1.13
Plant & Machinery 718.13 5.49 5.28% 372.61 211.76 24.06 0.13 24.19
Lines & Cable Network 1271.89 45.02 5.28% 653.16 382.23 42.28 1.07 43.35
Vehicles 27.24 0.00 5.28% 10.59 11.42 0.75 0.00 0.75
Furniture & Fixtures 17.59 0.64 6.33% 10.97 9.15 0.48 0.02 0.50
Office Equipment 30.73 4.88 6.33% 20.06 19.25 0.65 0.14 0.79
SUB TOTAL 2,199.70 59.09 3.30% 1,118.36 671.38 70.57 1.40 71.97
Add: Consumer contribution deducted from service connection under O.H. lines& cable network
233.68 0.13 5.28% 103.61 11.10 0.00 11.11
Add: Assets not belonging to the entity
2,002.18 1,283.88 -
- -
4435.55 1,343.10 1,221.97 671.38 81.67 1.40 83.08
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 83
Table 28: Depreciation Claimed by APDCL (Rs. Crore)
Particulars
State Govt. Grant
Grant for assets not belonging to entity (RGGVY,
MNRE etc.)
Co
nsu
mer
Co
ntr
ibu
tio
n
Total
As on 01.04.05
As on 01.04.19 Sub total As on 01.04.2019
Grants Available - 2,896.25 2,896.25 5,168.24 233.68 8,298.17
GFA (excluding Consumer Contribution and assets not belonging to company)
765.43 1,434.27 2,199.70 2,002.18 233.68 4,435.55
CWIP 330.20 2,599.78 2,929.99 2,472.20 5,402.18
Total 1,095.63 4,034.05 5,129.68 4,474.37 233.68 9,837.73
Cumulative grants apportioned in the ratio of GFA and CWIP
GFA - 1,029.73 1,029.73 2,312.67 233.68 3,576.08
CWIP - 1,866.51 1,866.51 2,855.57 4,722.09
Total - 2,896.25 2,896.25 5,168.24 233.68 8,298.17
Depreciation calculated as per the Regulation on the GFA
25.04 46.93 71.97 - 11.11 83.08
Weighted Average Rate of Depreciation (%) 3.27% 3.27% 3.27% - 4.75% 1.87%
Depreciation to be deducted on the assets built on the grants component on 90% asset
- 33.69 33.69 - 33.69
Depreciation claimed 25.04 13.24 38.28 - 11.11 49.39
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 84
4.10.3 APDCL has claimed depreciation of Rs. 49.39 Crore as shown in the Tables above.
4.10.4 APDCL has claimed the depreciation amount based on the following parameters:
a) Rates of depreciation notified in addendum to MYT Regulations 2018;
b) No funding from grant for Fixed Assets vis-à-vis CWIP transferred to APDCL
consequent to unbundling of erstwhile ASEB as on 1st April, 2005; As total
depreciation on the opening balance of GFA as on Transfer Scheme dated 1st
April, 2005 amounting to Rs. 25.04 Crore calculated at the weighted average
rate of 3.27% is claimed in totality;
c) Depreciation on subsequent assets is claimed after apportionment of available
grant; Total amount of depreciation claimed on this account is Rs. 13.24 Crore
after adjustment of funding from grant.
d) As no depreciation has been claimed on assets created out of RGGVY, MNRE
grant received against such schemes are shown separately with no claim of
depreciation.
Commission’s Analysis
4.10.5 The Commission has considered the opening GFA for FY 2019-20 as per the closing
GFA value approved in True up of FY 2018-19 vide Tariff Order dated March 07, 2020.
The Commission has computed depreciation as per scheduled rates specified in the
MYT Regulations, 2018.
4.10.6 As per Regulation 32.2 of the MYT Regulations, 2018, the total depreciation during the
life of the asset shall not exceed 90% of the original cost of GFA. The Commission has
computed the depreciation separately for assets added under each asset head in each
year. The Commission has disallowed the depreciation on assets where depreciation
is in excess of 90% of the original cost of asset under different asset heads. The
Commission has not considered depreciation on assets funded through grants and
consumer contribution in accordance with Regulations 30 and 32 of MYT Regulations,
2018, and in accordance with the Commission’s own Orders and the Hon’ble APTEL
Judgment in this regard.
4.10.7 Accordingly, the Commission has approved depreciation for FY 2019-20 as per the
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 85
MYT Regulations, 2018, as given in the Table below:
Table 29: Depreciation approved for FY 2019-20 (Rs. Crore)
Sl.
No. Particulars
FY 2019-20
Opening
GFA
Addition
during the
year
Rate of
depreciation
Approved
after true-up
1 Land & Rights 18.60 0.15 - -
2 Lease hold Land 2.84 - 0.09
3 Building 55.90 1.06 3.34% 1.89
4 Plant & Machinery 718.13 5.49 5.28% 26.74
5 Vehicle 27.24 - 9.50% 1.48
6 Furniture & Fixtures 17.59 0.64 6.33% 0.55
7 Office Equipment 30.73 4.88 6.33% 1.90
8 Other Civil Work 56.77 1.85 3.34% 1.93
9 Lines & Cable Network 1,271.89 45.02 5.28% 46.94
10 Total 2,199.69 59.09 81.53
11 Opening GFA excluding land 4,425.93
12 Closing GFA excluding land 5,757.06
13 Average Grant towards GFA 4,756.00
14 Less: Depreciation for
Grants/Consumer Contribution
76.15
13 Net Depreciation Allowed 5.37
Therefore, the Commission approves Depreciation of Rs. 5.37 crore in the truing
up for FY 2019-20.
4.11 Interest and Finance Charges
4.11.1 The Commission has approved interest on loan capital for the year on normative basis
in its Orders. APDCL has considered the normative closing loan of Rs. 639.15 Crore
for FY 2018-19 as approved in the true-up of FY 2018-19, as the normative loan
outstanding as on April 1, 2019. The actual Interest rate has been considered to
compute the interest on the normative loan balance.
4.11.2 The net interest expenses claimed by APDCL are shown in the Table below:
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 86
Table 30: Normative Interest as submitted by APDCL for FY 2019-20 (Rs. Crore)
Particulars Tariff Order
dt. 01.03.2019 APDCL
Normative Opening Loan 50.76 639.15
Addition of Normative loan during the year 65.00 3.94
Normative repayment during the year 17.77 49.39
Net Normative closing Loan 97.99 593.71
Rate of Interest 9.40% 10.74%
Interest on Loan 6.99 63.76
Bank Charges - 2.68
Bill Desk Charges for Collecting Revenue - 2.52
Net Interest & Finance Charges 6.99 68.96
4.11.3 APDCL submitted that considering the Commission’s observations in its previous Tariff
Orders, APDCL has excluded the interest liabilities on GPF as well as NPS to provide
tariff relief to that extent. APDCL stated that it reserved its right to claim the amounts
in future.
Commission’s Analysis
4.11.4 The Commission has approved Interest on loan capital for FY 2019-20 on normative
basis as per Regulation 34 of the MYT Regulations, 2018.
4.11.5 The Normative closing loan of FY 2018-19, as approved in the true-up for FY 2018-
29, has been considered as the loan outstanding as on April 1, 2019. The Commission
has considered the net addition of loan during FY 2019-20 as Rs. 59.08 crore, in
accordance with the funding of capitalisation approved earlier in this Order. The loan
repayment has been considered equivalent to depreciation approved for FY 2019-20
in this Order. The Commission has considered the weighted average Interest rate of
10.74% of actual loan portfolio, as submitted by APDCL, in accordance with the MYT
Regulations, 2018. The actual Other Financing Charges and Bill Desk Charges have
been allowed as per Audited Accounts of APDCL.
The Interest and Financing Charges approved by the Commission after true-up for FY
2019-20 is shown in the following Table:
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 87
Table 31: Approved Interest & Financing Charges for FY 2019-20 (Rs. Crore)
Particulars Tariff Order
dt. 01.03.2019 APDCL
Approved
after True-up
Net Normative Opening Loan 50.76 639.15 639.15
Addition of normative loan during the year 65.00 3.94 59.08
Normative Repayment during the year 17.77 49.39 5.37
Net Normative Closing Loan 97.99 593.70 692.86
Interest Rate 9.40% 10.74% 10.74%
Interest Expenses 6.99 63.76 71.53
Interest & Financing Charges 2.68 2.68
Bill Desk Charges for collecting Revenue 2.52 2.52
Total Interest & Financing Charges 68.96 76.73
4.11.6 The Commission has continued with its approach on disallowing Interest on GPF and
NPS, as adopted in previous Tariff Orders.
4.11.7 Therefore, the Commission approves Interest on Loans of Rs. 76.73 Crore in the
truing up for FY 2019-20.
4.12 Interest on Working Capital
4.12.1 APDCL submitted that Interest on Working Capital (IoWC) has been calculated on
normative basis in accordance with the MYT Regulations, 2018, as shown in the Table
below:
Table 32: IoWC as submitted by APDCL for FY 2019-20 (Rs. Crore)
Particulars Tariff Order dt.
01.03.2019 APDCL
O&M Expenses-One month 87.48 76.81
2-month Receivables 890.12 930.63
Maintenance spares @ 15% of O&M Expenses 157.47 138.25
Less: One-month Power Purchase Cost 393.53 443.22
Less: Consumer Security Deposit 753.70 685.98
Total Working Capital (12.17) 16.49
Rate of Interest on WC 11.50% 11.54%
Interest on Working Capital - 1.90
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 88
4.12.2 APDCL has considered rate of interest equal to the State Bank of India (SBI) MCLR
(1-year tenor) as on 1st April 2019 plus 300 basis points, i.e., 11.54%.
4.12.3 APDCL submitted that the Consumer Security Deposit (CSD) of Rs. 35.73 Crore of
the permanently disconnected consumers has not been considered for calculation of
normative IoWC.
4.12.4 APDCL also submitted that as payment to IEX is pre-paid in nature, the same has
been deducted to derive one month’s power purchase cost, while computing the
normative working capital requirement.
Commission’s Analysis
4.12.5 The Commission has computed IoWC in accordance with Regulations 36.3 and 36.4
of the MYT Regulations, 2018. The normative O&M expenses approved after true-up
for FY 2019-20 in this Order has been considered. The working capital requirement
towards two months of receivables has been considered based on the actual revenue
earned by APDCL in FY 2019-20. The average amount of CSD for FY 2019-20 has
been taken from the Audited Accounts, after deducting the CSD of the permanently
disconnected consumers, in accordance with the approach adopted in previous years.
4.12.6 The amount towards one-month of power purchase cost has been reduced from the
normative working capital requirement. APDCL has submitted that as payment to
Power Exchange is pre-paid nature, the same should be deducted to derive one
month’s power purchase cost. The Commission funds merit in this submission of
APDCL, as one-month of power purchase cost is reduced while computing the working
capital requirement, because APDCL gets average credit period of one-month for
payment of power purchase bills. Hence, the Commission has reduced the cost of
power purchase from Power Exchange, as approved after true-up, while computing
the working capital requirement. The rate of Interest has been considered equal to SBI
MCLR Rate as on April 1, 2019 plus 300 basis points, i.e., 11.14%.
4.12.7 The IoWC approved by the Commission in the truing up for FY 2019-20 is shown in
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 89
the following Table:
Table 33: IoWC approved by the Commission for FY 2019-20 (Rs. Crore)
Particulars
Tariff
Order dt.
01.03.2019
True-up
Claimed
Approved
after True-
up
O&M Expenses for one month 87.48 76.81 76.93
2-month Receivables 890.12 930.63 898.59
Maintenance spares @ 15% of O&M
Expenses
157.47 138.25 138.48
Less: One-month Power Purchase Cost 393.53 443.22 443.89
Less: Consumer Security Deposit 753.70 685.98 724.75
Total Working Capital (12.17) 16.49 (54.64)
Rate of Interest on WC 11.50% 11.54% 11.14%
Interest on Working Capital - 1.90 -
Therefore, the Commission approves NIL Interest on Working Capital in the
truing up for FY 2019-20, as the net working capital requirement is negative.
4.13 Interest on Consumer Security Deposit
4.13.1 APDCL submitted that the actual liability of Interest on CSD as per Audited Accounts
is Rs. 65.32 Crore, out of which, Rs. 38.06 Crore is actually paid during FY 2019-20.
APDCL has claimed the amount of Rs. 38.06 Crore actually liquidated against interest
on CSD during FY 2019-20 and requested the Commission to allow pass through of
the remaining amount as and when payment is made.
Commission’s Analysis
4.13.2 The Commission has approved the actual interest paid by APDCL on CSD in the true-
up for FY 2019-20, as shown in the Table below:
Table 34: Interest on CSD approved for FY 2019-20 (Rs. Crore)
Particulars Tariff Order
dt. 01.03.2019 APDCL
Approved
after True-up
Interest payable 65.32 65.32
Interest Actually Paid 16.15 38.06 38.06
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 90
The Commission approves the actual interest on CSD of Rs. 38.06 Crore paid by APDCL
to the consumers, in the truing up for FY 2019-20.
4.14 Provision for Bad & Doubtful Debts
4.14.1 APDCL submitted that the Commission has approved an amount of Rs. 12.35 Crore
as provision for bad & doubtful debts in the MYT Order dated March 01, 2019. APDCL
has claimed the Provision for Bad & Doubtful Debts of Rs. 22.10 Crore equivalent to
1% of amount receivable as on 31 March, 2020, as shown in the Table below:
Table 35: Provision for Bad & Doubtful Debts as submitted by APDCL (Rs. Crore)
Particulars Tariff Order dt.
01.03.2019 APDCL
Provision for Bad & Doubtful Debts 12.35 22.10
Commission’s Analysis
4.14.2 The Commission has allowed the provisioning for bad and doubtful debts at 1% of
receivables in the truing-up for FY 2019-20, as per the MYT Regulations, 2018, as
shown in the Table below:
Table 36: Provision for Bad & Doubtful Debts approved by the Commission (Rs. Crore)
Particulars Tariff Order
dt. 01.03.2019
APDCL Approved after True-
up
Provision for Bad and Doubtful Debts 12.35 22.10 22.10
Therefore, the Commission approves Provision for Bad & Doubtful Debts of Rs.
22.10 crore in the truing up for FY 2019-20.
4.15 Net Prior Period Income/(Expenses)
4.15.1 APDCL submitted that Commission has not allowed any amount under this head in
the MYT Order. However, the actual component-wise breakup is detailed in the Table
below:
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 91
Table 37: Net Prior Period Income/(Expenses) claimed by APDCL for FY 2019-20 (Rs.
Crore)
Particulars Actual APDCL Claim
Prior Period Income
Interest income for prior period (35.31) (35.31)
Excess Provision for depreciation in prior periods 0.35
Excess provision for interest and finance charges in prior period
563.25
Excess provision in prior period (7.30) (7.30)
Other income relating to prior period (0.68) (0.68)
Total Prior Period Income 520.31 (43.29)
Prior Period Expenses
Operating losses for Prior Period 16.82 16.82
Employee cost relating to Prior Period 0.78
Interest and other finance charges relating to prior periods
(41.36) (41.36)
Administration expenses relating to prior periods 3.76 3.76
Total Prior Period Expenses (20.00) (20.78)
Net Prior Period Income/(Expenses) 540.31 (22.51)
4.15.2 APDCL submitted that an amount of Rs. 554.00 Crore has been waived off on account
of interest accrued on GoA loan as on 30.09.2015 as per GoA notification No.
PEL.137/2018/59 dt. 11.11.2019, in accordance with the UDAY MoU. As the interest
has been calculated on normative basis taking into consideration UDAY conversion,
the same has not been considered. Similarly, impact of Rs. 9.25 Crore, which is a book
adjustment due to pendency in notification of UDAY, has also not been considered.
4.15.3 APDCL has claimed Net Prior Period Expense of Rs. 22.51 Crore in the true-up for FY
2019-20 and submitted the details of each head of prior period expenses and prior
period income considered in the Audited Accounts of APDCL.
Commission’s Analysis
4.15.4 The Commission sought further clarification from APDCL regarding the heads of Prior
Period Income/(Expenses), as considered in the Audited Accounts and as claimed by
APDCL in the true-up for FY 2019-20, which was submitted by APDCL. The
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 92
Commission has analysed the component-wise details and justification for Net Prior
Period Income/(Expenses) for FY 2019-20 as submitted by APDCL. The Commission
has considered the treatment of prior period items based on the treatment allowed to
that particular item in the true-up of the year to which the income/(expenses) pertain.
4.15.5 For prior period income/(expenses) against controllable expenses such as O&M
expenses, 2/3rdof APDCL claim has been considered as in earlier years, sharing of the
gains/losses has been allowed.
4.15.6 The interest income/(expenses) and Operating Losses of prior period have been
considered based on the detailed head-wise explanation submitted by APDCL, in
replies to data gaps. The excess provision of prior periods have not been considered
as income/(expenses), as the Commission has not allowed provisioning in the past.
4.15.7 The Net Prior Period Income/(Expenses) approved by the Commission in the true up
for FY 2019-20 is shown in the Table below:
Table 38: Prior Period Income/(Expenses) approved by the Commission for FY 2019-20
(Rs. Crore)
Particulars Actual APDCL Claim
Approved after
True-up
Prior Period Income
Interest income for prior period (35.31) (35.31) (35.31)
Excess Provision for depreciation in prior periods
0.35
Excess provision for interest and finance charges in prior period
563.25
Excess provision in prior period (7.30) (7.30) -
Other income relating to prior period (0.68) (0.68) (0.68)
Total Prior Period Income 520.31 (43.29) (35.99)
Prior Period Expenses
Operating losses for Prior Period 16.82 16.82 16.82
Employee cost relating to Prior Period 0.78 0.52
Interest and other finance charges relating to prior periods
(41.36) (41.36) (41.36)
Administration expenses relating to prior periods
3.76 3.76 2.51
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 93
Particulars Actual APDCL Claim
Approved after
True-up
Prior Period Income
Total Prior Period Expenses (20.00) (20.78) (21.51)
Net Prior Period Income/(Expenses) 540.31 (22.51) (14.48)
Accordingly, the Commission approves the Net Prior Period Expenses of Rs.
14.48 Crore in the truing up for FY 2019-20.
4.16 Return on Equity
4.16.1 APDCL submitted that the Commission considered equity of Rs.162.77 Crore and
allowed return @16% on the equity base. APDCL submitted that pending
notification by GoA on Share Application Money amounting to Rs. 88.04 Crore
transferred from erstwhile ASEB to APDCL and Rs.0.63 Crore transferred on
dissolution of ASEB on 31-03-2013, it was restricting its claim to the amount allowed
by the Commission in the MYT Order. Accordingly, RoE of Rs 26.04 Crore has been
claimed, as shown in the following Table:
Table 39: RoE as submitted by APDCL (Rs. Crore)
Sl. No.
Particulars Tariff Order
dt. 01.03.2019 APDCL
A Opening Equity 162.77 162.77
1 Net Addition during the Year - -
2 Closing Equity 162.77 162.77
3 Rate of Return on Equity 16.00% 16.00%
4 Return on Equity 26.04 26.04
Commission’s Analysis
4.16.2 As equity shares are yet to be issued against the Share Application Money Pending
Allotment, the Commission has not considered RoE on this amount, in line with the
practice followed in earlier Orders. Further, the capitalization approved in this Order
has not been funded by equity and therefore, no equity addition during the year has
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 94
been considered.
4.16.3 The RoE allowed by the Commission at 16% of the equity capital of APDCL is shown
in the following Table:
Table 40: RoE approved by the Commission for FY 2019-20 (Rs. Crore)
Particulars Tariff Order
dt. 01.03.2019
APDCL
Petition
Approved
after true up
Opening Equity 162.77 162.77 162.77
Net Addition during the Year 0.00 0.00 0.00
Closing Equity 162.77 162.77 162.77
Rate of Return on Equity 16.00% 16.00% 16.00%
Return on Equity 26.04 26.04 26.04
Therefore, the Commission approves RoE of Rs. 26.04 crore in the truing up for
FY 2019-20.
4.17 Other Income
4.17.1 The Commission had approved the Other Income at Rs. 253.67 Crore for FY 2019-20
in the MYT Order dated March 01, 2019, whereas APDCL has submitted actual Other
Income of Rs. 586.73 Crore as per the Audited Accounts for FY 2019-20. APDCL
stated that the increase in Other Income was primarily due to income from sale of
surplus power, made possible due to export of seasonal power from allocated sources
on account of significant gap in demand during peak and off-peak hours.
4.17.2 The following Table shows the Other Income as submitted by APDCL:
Table 41: Other Income submitted by APDCL for FY 2019-20 (Rs. Crore)
Sl. No.
Particulars Tariff
Order dt. 01.03.2019
APDCL
1 Income from Investment, Fixed & Call Deposits
253.67
94.09
2 Income from Trading of Power 382.51
Income from Sale of Scrap 0.23
3 Revenue from sale of LED's, Tubelight, Fan, etc. 0.92
4 Rent from residential buildings 0.02
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 95
Sl. No.
Particulars Tariff
Order dt. 01.03.2019
APDCL
5 Receipt from Pension Trust 67.10
6 Miscellaneous receipts 42.67
7 Total 253.67 587.54
Commission’s Analysis
4.17.3 The Commission has considered the actual Other Income as per the Audited Accounts
in the true up for FY 2019-20, as shown in the Table below:
Table 42: Other Income approved by the Commission for FY 2019-20 (Rs. Crore)
Sl. No.
Particulars Tariff Order
dt. 01.03.2019
APDCL Approved after true-
up
1 Income from Investment, Fixed & Call Deposits
253.67
94.09 94.09
2 Income from Trading of Power 382.51 382.51
Income from Sale of Scrap 0.23 0.23
3 Revenue from sale of LED's, Tubelight, Fan, etc.
0.92 0.11
4 Rent from residential buildings 0.02 0.02
5 Receipt from Pension Trust 67.10 67.10
6 Miscellaneous receipts 42.67 42.67
7 Total 253.67 587.54 586.73
Therefore, the Commission approves Other Income of Rs. 586.73 crore in the true
up for FY 2019-20.
4.18 Non-Tariff Income
4.18.1 APDCL submitted that it has earned Non-Tariff Income (NTI) of Rs.408.46 Crore
during FY 2019-20, as per the Audited Accounts, as against the NTI of Rs. 257.11
crore approved in the MYT Order.
4.18.2 APDCL submitted that it has earned Rs. 25.47 Crore rebate on prompt payment of
power purchase bills, which has been considered under Non-Tariff Income. The
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 96
Delayed Payment Charges (DPC) of Rs. 4.83 crore paid to various Gencos has been
deducted from the income earned from DPC levied on its consumers. The following
Table shows the Non-Tariff Income submitted by APDCL for FY 2019-20:
Table 43: Non-Tariff Income submitted by APDCL for FY 2019-20 (Rs. Crore)
Sl. Particulars Tariff
Order dtd. 01.03.2019
Actual
1 Rentals from Meters, Service Lines, Capacitors, etc.
257.11
22.07
2 Income from recoveries on account of theft of energy/ Malpractices 0.38
3 Delayed payment charges from Consumers 235.34
4 Misc. recoveries 21.44
5 Rebate on prompt payment of Power purchase bills 25.47
6 Cross Subsidy surcharge on Open Access Consumer 33.79
7 Wheeling charges collected 4.33
8 Short Term Open Access (STOA) credit 60.06
9 Income on Reactive Power 0.21
10 Income From SCED 5.36
Total 408.46
Commission’s Analysis
4.18.3 On scrutiny of the submission made by APDCL, it is observed that APDCL has claimed
income from DPC of Rs. 235.34 Crore by deducting the amount of Rs. 4.83 Crore paid
as DPC to various Gencos. This is an incorrect approach. The DPC paid to Gencos is
in the nature of penal charges, and cannot be allowed as an expense. Hence, the
Commission has considered Rs 240.17 Crore of DPC as per Audited Accounts.
4.18.4 In line with the approach adopted in the previous Orders, the Commission has not
considered the rebate of Rs. 25.47 Crore received on prompt payment of power
purchase bills, as NTI.
4.18.5 The amount of Non-Tariff Income approved in the true up for FY 2019-20, is shown in
the Table below:
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 97
Table 44: Non-Tariff Income approved for FY 2019-20 (Rs. Crore)
Sl. No.
Particulars Tariff Order
dt. 01.03.2019 APDCL
Approved after true-up
1 Meter Rent 257.11
22.07 22.07
2 Compensation charges for theft of energy/malpractices
0.38 0.38
3 Cross Subsidy surcharge on Open Access Consumer
33.79 33.79
4 Wheeling Charges collected 4.33 4.33
5 Short-term Open Access Credit 60.06 60.06
6 Rebate on PP bills 25.47 -
7 Miscellaneous Recoveries 21.44 21.44
8 Other Miscellaneous Income
a) Delayed Payment Charges 235.34 240.17
b) Income on Reactive Power 0.21 0.21
c) Income from SCED 5.36 5.36
Total 257.11 408.45 387.81
Therefore, the Commission approves Non-Tariff Income of Rs. 387.81 Crore based
on the Audited Accounts, in the truing up for FY 2019-20.
4.19 Revenue from Sale of Power
4.19.1 APDCL submitted that against the approved revenue of Rs. 5592.99 Crore, the actual
revenue collected from sale of power within the State amounted of Rs.5391.51 Crore,
including targeted subsidy of Rs. 289.85 Crore received from the Government of
Assam (GoA).
4.19.2 APDCL submitted that the revenue billed is lower than approved revenue
primarily due to lesser sales than approved, however, the Average Billing Rate
(ABR) is higher than the approved ABR.
Commission’s Analysis
4.19.3 APDCL has claimed Revenue from sale of power as per the Audited Accounts, i.e.,
Rs. 5391.51 Crore, including targeted subsidy of Rs. 289.85 Crore received from the
GoA.
4.19.4 The Commission has verified the actual category-wise ABR vis-à-vis the ABR
approved for FY 2019-20 in the MYT Order. It is observed that in all LT categories, the
actual ABR is lower than approved ABR, with overall ABR of LT category lower by Rs.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 98
0.48/kWh as compared to approved ABR. For all HT categories, the actual ABR is
higher than approved ABR, with overall ABR of HT category higher by Rs. 0.56/kWh
as compared to approved ABR. For overall APDCL, the actual ABR is lower than
approved ABR by Rs. 0.14/kWh. This variation is considered reasonable, as the ABR
approved in the ARR is based on estimated contribution of fixed/demand charges and
energy charges, whereas the actual ABR is based on the actual contribution of
fixed/demand charges and energy charges.
Accordingly, the Commission has considered the revenue from sale of power as
Rs. 5391.51 Crore (including targeted subsidy) in the Truing up for FY 2019-20.
4.20 Revenue Grant/Subsidy
4.20.1 APDCL submitted that the targeted subsidy allowed to various category of consumers
by GoA amounting to Rs. 289.86 Crore is considered as a part of revenue from sale
of power.
4.20.2 In addition to the above, the GoA has also provided an amount of Rs. 20.00 Crore
during FY 2019-20 as Operation Fund Requirement (OFR) (Future loss funding) as
per the UDAY MoU. The same has not been considered as revenue for the purpose
of truing up, in line with the approach adopted by the Commission in previous Orders.
4.20.3 Additionally, an amount of Rs. 238.95 Crore has also been provided by GoA as
Revenue Grant to facilitate liquidation of outstanding power purchase liabilities. The
same has been considered for passing on to the consumers in totality, in the true-up
for FY 2019-20.
Commission’s Analysis
4.20.4 The amount of Rs. 289.96 Crore received from GoA against targeted subsidy for FY
2019-20 has already been considered by the Commission as a part of revenue from
sale of power, as discussed in earlier Section.
4.20.5 The OFR support has not been considered as revenue for the purpose of truing up, in
line with the approach adopted by the Commission in previous Orders.
4.20.6 The additional amount of Rs. 238.95 Crore provided by GoA as Revenue Grant to
facilitate liquidation of outstanding power purchase liabilities has been considered as
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 99
Revenue, in the true-up for FY 2019-20.
The Commission accordingly considers Other Subsidy of Rs. 238.95 Crore in the Truing
Up for FY 2019-20.
4.21 ARR and Revenue Gap/(Surplus) after Truing Up of FY 2019-20
4.21.1 Considering the above heads of expense and revenue approved after truing up for FY
2019-20, the Net ARR and Revenue Gap/(Surplus) for FY 2019-20 is shown in the
following Table:
Table 45: ARR & Revenue Gap/(Surplus) approved in the Truing up for FY 2019-20 (Rs. Crore)
Sl. No.
Particulars Tariff Order
dt. 01.03.2019
APDCL Approved after true-
up
1 Power Purchase Expenses 4722.41 5,525.35 5,533.49
2 O&M Expenses 1,049.79 921.69 923.21
a) Employee Expenses 850.68 733.00 733.00
b) R&M Expenses 149.97 148.84 148.83
c) A&G Expenses 49.14 39.86 41.37
3 Depreciation 17.77 49.39 5.37
4 Interest and Finance Charges 6.99 68.96 76.73
5 Interest on Working Capital - 1.90 -
6 Interest on CSD 16.14 38.06 38.06
7 Return on Equity 26.04 26.04 26.04
8 Income Tax - - -
9 Prior Period Expenses 22.51 14.48
10 Provisioning for Bad & Doubtful Debts
12.35 22.10 22.10
11 Reduction in Power Purchase cost due to excess losses
(93.41) (96.49)
12 Sharing of gains/(losses) on account of O&M expenses
(3.67) (4.18)
13 Total Expenditure 5,851.49 6,578.85 6,538.81
14 Less: Non-Tariff Income 257.11 408.45 387.81
15 Less: Other Income 253.67 586.73 586.73
16 Aggregate Revenue Requirement 5,340.71 5,583.67 5,564.27
17 Revenue Gap/(Surplus) after True Up of FY 2017-18
175.19 175.19 175.19
18 Net Carrying Cost on Gap/(Surplus) of FY 2017-18
77.09 77.09 77.09
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 100
Sl. No.
Particulars Tariff Order
dt. 01.03.2019
APDCL Approved after true-
up
19 Net Revenue Requirement 5,592.99 5,835.95 5,816.55
20 Revenue from sale of electricity 5,592.99 5,391.51 5,391.51
21 Other Subsidy for Power Purchase 238.95 238.95
22 Total Revenue incl. subsidy 5,592.99 5,630.46 5,630.46
23 Revenue Gap/(Surplus) - 205.49 186.09
The Revenue Gap of Rs. 186.09 Crore approved in the truing up for FY 2019-20, has been
considered for adjustment during FY 2021-22, along with associated Carrying Cost, as
elaborated in Chapter 7 of this Order.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 101
5 Annual Performance Review (APR) for FY 2020-21
5.1 Introduction
5.1.1 The Commission vide its Order dated March 07, 2020 had approved the revised ARR
for FY 2020-21. This Chapter deals with APR for FY 2020-21 in accordance with the
provisions of MYT Regulations, 2018, based on the submissions made by APDCL.
5.1.2 Regulation 9.3 of the MYT Regulations, 2018 specifies that the Commission shall
undertake the APR and True-up for the respective years of the Control Period from FY
2019-20 to FY 2021-22, as reproduced below:
“9.3 The scope of the Annual Performance review and True up shall be a
comparison of the actual performance of the Generating Company or
Transmission Licensee or SLDC or Distribution Licensee with the approved
forecast of Aggregate Revenue Requirement and expected revenue from tariff
and charges and shall comprise the following:
…
b) Annual Performance Review: a comparison of the performance targets
estimated to be achieved for the current financial year (based on 6 months
actual data) with the approved forecast for that financial year including
adjusting trajectories of uncontrollable if needed.” (emphasis added)
5.1.3 APDCL submitted the APR Petition for FY 2020-21, supported by actual information
available till September 2020 and estimated values for the next six months of FY 2020-
21.
5.1.4 The main objective of APR is to compare the actual performance for FY 2020-21 vis-
à-vis approved forecast in the Tariff Order for FY 2020-21 dated March 07, 2020. The
Revenue Gap/(Surplus) arising out of APR for FY 2020-21 has not been passed
on to the consumers, and the same shall be considered at the time of Truing-up
only.
5.1.5 In this Chapter, the Commission has analysed the revised estimate of all the
components of ARR vis-à-vis values approved in Tariff Order for FY 2020-21. The
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 102
Commission has computed the Revenue Gap/(Surplus) as an indication of the
performance in FY 2020-21. No sharing of (gains)/ losses has been undertaken at
this stage and the same shall be considered at the time of Truing up for FY 2020-
21.
5.2 Energy Sales
5.2.1 The Commission vide MYT Order dated March 07, 2020, had approved energy sales
of 7815 MU. APDCL has estimated energy sales for FY 2020-21, based on the actual
energy sales of FY 2019-20 and actual performance during first half (H1) of FY 2020-
21 and considering practical ground realities particularly in the wake of COVID.
5.2.2 APDCL submitted that the actual energy consumption during H1 of FY 2020-21 is
almost same as that of corresponding period of previous year.
5.2.3 APDCL further submitted that there is variation of around 554 MU in revised energy
sales vis-à-vis approved energy sales entirely due to COVID. Significant impact of
COVID is very much evident from the fact that that against decline in consumption for
all consumer categories, domestic consumption has shown an increasing trend.
5.2.4 APDCL has accordingly projected energy sales for FY 2020-21 as shown in the Table
below:
Table 46: Category-wise Energy Sales Projected by APDCL for FY 2020-21 (MU)
Category
Tariff Order
dt. 07.03.2020 Estimated
JEEVAN DHARA 322 403
DOMESTIC A 0.5 kW to 5 kW 3,193 3,363
Domestic-B above 5 kW to 25 kW 403 453
Commercial Load above 0.5 to 25 kW 849 629
General Load up to 25 kW 148 101
Public Lighting 17 17
Agriculture up to 7.5HP 47 19
Small Industries Rural up to 25 kW 95 59
Small Industries Urban 38 25
Temporary 8 6
LT TOTAL 5,119 5,076
HT Domestic 25 kW and above 17 22
HT commercial 25 kW & above 402 279
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 103
Commission’s Analysis
5.2.5 For the estimation of Energy Sales for FY 2020-21, the Commission has considered
the trued-up category-wise sales in FY 2019-20 as the base figure.
5.2.6 In view of the impact of COVID on the category-wise sales of APDCL, the category-
wise energy sales estimated by APDCL for FY 2020-21 have been accepted, as
APDCL would be in the best position to judge the impact of COVID and expected
increase in sales with the gradual economic recovery.
5.2.7 The category-wise sales estimated by APDCL and approved by the Commission in the
APR for FY 2020-21 are given in the Table below:
Table 47: Energy Sales considered by the Commission for FY 2020-21 (MU)
Category Tariff Order dt.
07.03.2020
APDCL
Submission
Approved
in APR
JEEVAN DHARA 322 403 403
DOMESTIC A 0.5 kW to 5 kW 3,193 3,363 3,363
Domestic-B above 5 kW to 25 kW 403 453 453
Commercial Load above 0.5 to 25 kW 849 629 629
General Load up to 20 kW 148 101 101
Public Lighting 17 17 17
Agriculture up to 7.5 HP 47 19 19
Small Industries Rural up to 25 kW 95 59 59
Small Industries Urban 38 25 25
Public Water works 103 67
Bulk Supply Govt. Edu Inst 85 57
Bulk Supply Others 387 386
HT Small Industries up to 50 kW 21 12
HT Industries-1 50kW to 150 kW 76 52
HT Industries-II above 150 kW 1,048 703
Tea Coffee & Rubber 456 524
Oil & Coal 77 73
HT Irrigation Load above 7.5 HP 23 9
HT Temporary - 2
HT Electric Crematorium - -
HT Railway Traction - -
HT Electric Vehicle Charging Station 0.2
HT TOTAL 2,696 2,186
All Total 7,815 7,261
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 104
Category Tariff Order dt.
07.03.2020
APDCL
Submission
Approved
in APR
Temporary 8 6 6
LT TOTAL 5,119 5,076 5,076
HT Domestic 25 kW and above 17 22 22
HT commercial 25 kW & above 402 279 279
Public Water works 103 67 67
Bulk Supply Govt. Edu Inst 85 57 57
Bulk Supply Others 387 386 386
HT Small Industries up to 50 kW 21 12 12
HT Industries-1 50 kW to 150 kW 76 52 52
HT Industries-II above 150 Kw 1,048 703 703
Tea Coffee & Rubber 456 524 524
Oil & Coal 77 73 73
HT Irrigation Load above 7.5 HP 23 9 9
HT Temporary Supply - 2 2
HT Electric Crematorium - - -
HT Railway Traction - - -
HT Electric Vehicle Charging Station 0.2 0.2
HT TOTAL 2,696 2,186 2,186
All Total 7,815 7,261 7,261
Therefore, the Commission considers total sales of 7,261 MU in the APR for FY
2020-21.
5.3 Distribution Loss
5.3.1 The Commission in the Tariff Order dated March 07, 2020 had approved Distribution
Loss of 15.50% for FY 2020-21. APDCL has estimated the Distribution Loss for FY
2020-21 as 18.50%.
5.3.2 APDCL submitted that, over the years, it has been able to reduce the losses gradually
except for the years with massive rural electrification, i.e., FY 2009-10, FY 2011-12,
and FY 2018-19. Also, the outbreak of COVID has made the prevailing challenges
more difficult to counter with restriction in meter reading, billing, etc.
5.3.3 APDCL further submitted that earnest efforts have been made to ensure provisional
billing based on historical consumption with IT initiative to tackle the situation.
However, it cannot be denied that regularization will take time, with very limited
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 105
manpower engaged in various activities.
5.3.4 APDCL requested the Commission to approve the Distribution Loss of 18.50% in the
APR of FY 2020-21.
Commission’s Analysis
5.3.5 The Commission has already elaborated on the issue of Distribution Loss in this Order,
while Truing up for FY 2019-20. The Commission is of the view that APDCL has
reported close to approved distribution loss levels till FY 2017-18, even when there
was significant increase in the LT consumers on account of household electrification.
5.3.6 In the Tariff Order dated March 07, 2020, the Commission had approved Distribution
Loss of 15.50%. The Commission, based on the contentions of APDCL such as
inverse LT:HT ratio and massive electrification under SAUBHAGYA, had approved
such Distribution Loss levels for APDCL. Therefore, the approved Distribution Loss of
15.50% already takes into account the aspects mentioned by APDCL.
5.3.7 The Commission has therefore, considered the Distribution Loss for FY 2020-21 as
approved in the Tariff Order dated March 7,2020, as shown in the Table below:
Table 48: Distribution Losses considered by the Commission for FY 2020-21
Particulars
Tariff Order
dtd.07.03.2020
APDCL
Projection
Approved
in APR
Distribution Loss (%) 15.50% 18.50% 15.50%
5.4 Energy Balance
5.4.1 APDCL has considered the revised estimates for energy requirement for FY 2020-21
based on the revised estimates of energy sales and Distribution Losses. APDCL has
submitted that it has considered the intra-State transmission losses as 3.38%, as
intimated by AEGCL. The inter-State (PGCIL) losses have been considered as 1.42%,
based on the actual losses in FY 2019-20.
5.4.2 The estimated Energy Balance for FY 2020-21 as submitted by APDCL is shown in
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 106
the following Table:
Table 49: Energy Balance for FY 2020-21 as projected by APDCL (MU)
Sl. Particulars Tariff Order dt.
07.03.2020 APDCL
1 Energy Sales (MU) 7,815 7,261
2 Distribution Loss (%) 15.50% 18.50%
3 Energy Requirement (MU) 9,249 8,910
4 AEGCL Transmission Loss (%) 3.34% 3.38%
5 Energy Input to AEGCL (MU) 9,568 9,221
6 Seasonal Export (MU) - 1645
6 Pooled Loss of PGCIL (%) 1.51% 1.42%
7 Total Energy Requirement (MU) 9,715 10,999
Commission’s Analysis
5.4.3 The Commission has approved the Energy Balance in the APR for FY 2020-21 based
on the estimated sales, approved Distribution Loss, approved Transmission Loss
trajectory for AEGCL, and proportionate PGCIL Losses on external power purchase.
The Energy Balance approved by the Commission in the APR for FY 2020-21 is shown
in the Table below:
Table 50: Energy Balance for FY 2020-21 considered by the Commission (MU)
Sl. Particulars Tariff Order
07.03.2020 APDCL
Approved
in APR
1 Energy Sales (MU) 7,815 7,261 7,261
2 Distribution Loss (%) 15.50% 18.50% 15.50%
3 Distribution Loss (MU) 1,434 1,648 1,332
4 Energy Requirement (MU) 9,249 8,910 8,593
5 Transmission Loss (%) 3.34% 3.38% 3.34%
6 Transmission Loss (MU) 320 312 297
7 Energy input to Transmission System 9,568 9,221 8,890
8 Seasonal Export (MU) - 1,645 1,645
9 Pooled Loss of PGCIL (%) 1.51% 1.42% 1.42%
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 107
Sl. Particulars Tariff Order
07.03.2020 APDCL
Approved
in APR
10 Pooled Loss of PGCIL (MU) 147 133 128
11 Total Energy Requirement (MU) 9,715 10,999 10,662
Therefore, the Commission considers total Power Purchase Requirement of
10,662 MU after APR for FY 2020-21.
5.5 Power Purchase
5.5.1 APDCL submitted that it is largely dependent on APGCL and CGS Stations for meeting
the Base Load. However, to meet the Peak Demand of the State, APDCL has tied up
certain bilateral power and also purchases power from Power Exchanges.
5.5.2 The power purchase quantum and cost has been estimated for FY 2020-21 based on
actuals for first half of the year and estimated for second half of the year.
5.5.3 APDCL submitted that it has projected the source-wise power purchase for FY 2020-
21 based on the following assumptions:
➢ APGCL: APDCL has firm allocation of power from the State generating stations
of APGCL. Thermal plants of APGCL include NTPS, LTPS and LRPP. Hydro
plants of APGCL supplying power to APDCL are MeHEP and KLHEP. For
projecting the energy availability from these stations, APDCL has considered
gross energy availability based on allocated capacity and actual PLF, and Auxiliary
consumption for these plants in recent past with the status of operation. The tariff
for these generating stations has been considered as per the latest Tariff Order of
APGCL.
➢ Central Generating Stations (NER): The key CGS of North Eastern Region
(NER) supplying power to APDCL include plants of NEEPCO, NHPC, OTPC and
NTPC (Thermal). The share allocation of the various plants of CGS (NER) has
been considered based on the latest Regional Energy Accounts (REA), while Plant
Load Factor (PLF) is considered based on past year actuals vis-à-vis shut down
of plants. Operational norms are considered as approved by Central Electricity
Regulatory Commission (CERC) in respective Tariff Orders. The latest available
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 108
inter-State transmission loss of 1.42% is considered while intra-State transmission
loss is considered at 3.38%. The cost for the CGS has been considered as per the
latest CERC orders for the respective plants. It is to be mentioned here that Kopili-
I, Kopili II, and Khandong Stations of NEEPCO have not been considered due to
its faulty machine.
➢ Central Generating Stations (Eastern Region): The share allocation of the
various plants of CGS (ER) has been considered based on the latest REA.
Operational parameters of these plants have been considered based on the actual
generation. APDCL is allocated power from Farakka I & II, Kahalgaon I, Kahalgaon
II and Talcher of NTPC located in ER. The cost for the CGS has been considered
as per the latest CERC orders for the respective plants.
➢ Other sources: For HHPPCL, PLF and auxiliary consumption is considered as
per the Commission’s Order dated April 12, 2013. Similarly, levelized tariff is
considered as approved in this Order.
➢ Power available from NVVNL Solar Bundled (JNNSM) and NVVNL Coal Bundled
(JNNSM) has been considered based on FY 2019-20 (True up) and actuals for FY
2020-21 (H1). For Suryatap Solar, normative parameters have been considered
and rate is as per latest Tariff Order of the Commission (Rs. 8.78/kWh). Trading
purchase quantum has been considered only for the previously approved bilateral
PPA with OTPC for merchant power.
➢ Renewable sources: APDCL has projected to meet the Renewable Purchase
Obligation (RPO) by mix of purchase power from Solar power projects (25 MW x
4) and allocation from many large hydro power stations, which are in the pipeline.
The Commission has deferred the RPO compliance for FY 2019-20 till December,
2020.
➢ Inter-State and Intra-State charges: PGCIL Transmission Charges have been
projected based on actuals in H1 of FY 2020-21. The AEGCL Transmission
Charges and SLDC Charges have been considered same as approved in latest
Tariff Order of AEGCL and SLDC.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 109
5.5.4 APDCL has estimated power purchase quantum and cost for FY 2020-21 as shown in
the Table below:
Table 51: Power Purchase for FY 2020-21 as submitted by APDCL (Rs. Crore)
Sl. No.
Agency/Source Tariff Order APDCL Submission
Total Quantum
(MU)
Total Cost (Rs
Cr)
Rate (Rs/ kWh)
Total Quantum
(MU)
Total Cost
(Rs Cr)
Rate (Rs/ kWh)
1 APGCL 2,190.19 697.51 3.18 1,281.40 410.24 3.20
2 NEEPCO (HYDRO)
KOPILI I - -
KOPILI II - -
KHANDONG - -
RHEP 501.37 114.04 2.27 626.16 146.28 2.34
DHEP 43.90 30.73 7.00 88.75 48.84 5.50
KAMENG HEP 225.41 104.59 4.64 138.68 55.48 4.00
3 NEEPCO (TH)
AGBPP 875.64 367.37 4.20 884.92 331.73 3.75
AGTPP 257.48 120.32 4.67 376.98 154.21 4.09
AGTPP 2
4 NHPC Existing, Lg HEP 84.43 41.35 4.90 143.69 49.39 3.44
5 NTPC
FARAKKA 209.69 76.95 3.67 239.05 97.91 4.10
KAHELGAON - I 107.28 36.91 3.44 116.06 42.73 3.68
KAHELGAON -II 429.97 149.00 3.47 433.83 151.00 3.48
TALCHER 239.23 36.31 1.52 150.59 53.48 3.55
FARAKKA-III
NTPC (New) BTPS 2,328.93 1,456.42 6.25 2,620.99 1,661.95 6.34
NTPC BTPS III
6 MeECL 0.04 0.07 17.50
7 Pare HEP 173.49 88.78 5.12 210.79 103.74 4.92
8 Suryatap Solar 5.54 4.99 9.01 5.47 5.28 9.65
9 JNNSM Bundled Solar power
11.33 12.77 11.27 6.77 9.01 13.31
10 SECI Solar 41.12 25.38 6.17 37.10 23.48 6.33
11 JNNSM Bundled Coal power
30.28 9.61 3.17 46.53 21.31 4.58
12 Bilateral Sources/Traders 686.37 293.13 4.27
13 Power Exchanges - - 506.38 164.88 3.26
14 OTPC 1,567.86 484.22 3.09 1,343.03 441.52 3.29
15 HHPCPL (Champawati) 5.26 2.16 4.11 5.92 2.67 4.51
16 Wind Power PTC 105.25 40.87 3.88 98.78 35.83 3.63
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 110
Sl. No.
Agency/Source Tariff Order APDCL Submission
Total Quantum
(MU)
Total Cost (Rs
Cr)
Rate (Rs/ kWh)
Total Quantum
(MU)
Total Cost
(Rs Cr)
Rate (Rs/ kWh)
17 SECI Wind 40.48 16.52 4.08 129.36 35.71 2.76
18 Mangdechhu 606.01 253.92 4.19 631.40 272.33 4.31
19 PTC Nikachu
20 SPV Assam 174.76 58.11 3.33 62.90 20.99 3.34
21 Power Swapping Arrangement
Sub-total: 10,254.94 4,228.90 4.12 10,871.90 4,633.12 4.26
22 Renewable Energy Certificate (Solar)
22.17 11.37
23 Renewable Energy Certificate (Non-Solar)
15.59 -
24 UI Pool/Deviation Settlement Mechanism
126.91 47.76 3.76
Sub-total: 10,254.94 4,266.66 4.16 10,998.81 4,692.25 4.27
25 AEGCL Transmission Charges
358.75 0.35 368.43
26 SLDC Charges 9.68
27 PGCIL Transmission Charges
564.04 782.70
TOTAL 10,254.94 5,199.13 5.07 10,998.81 5,843.38 5.31
Commission’s Analysis
5.5.5 The Commission has accepted APDCL’s submissions regarding projected energy
availability from existing and new generating stations. The quantum of power purchase
from APGCL is kept in line with the generation approved for APGCL in the APR of FY
2020-21.
5.5.6 The Commission has considered the rate of purchase from various sources based on
the following approach:
a) Cost of power purchase from APGCL to APDCL has been considered same as
the revenue of APGCL considered in APR of FY 2020-21;
b) The Transmission Charges payable to AEGCL and SLDC Charges have been
considered as approved in the respective Tariff Order for FY 2020-21;
c) The Commission has accepted the fixed charges and energy charges considered
by APDCL for CGS (NER and ER);
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 111
d) The Commission has considered the actual fixed and variable cost in H1 of FY
2020-21 for other sources, for estimating power purchase cost for FY 2020-21.
e) The Commission has considered the balance quantum of purchase from Power
Exchange to meet the total energy requirement of APDCL, as approved in the
Energy Balance earlier in this Order.
5.5.7 The source-wise power purchase quantum and costs approved by the Commission for
FY 2020-21, is shown in the Table below:
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 112
Table 52: Power Purchase Quantum and Cost considered by the Commission for the FY 2020-21
Sl. No.
Agency/Source Tariff Order APDCL Submission APR FY 202021
Total Quantum
(MU)
Total Cost (Rs Cr)
Rate (Rs/kWh)
Total Quantum
(MU)
Total Cost (Rs Cr)
Rate (Rs/kWh)
Total Quantum
(MU)
Total Cost (Rs Cr)
Rate (Rs/ kWh)
1 APGCL 2,190.19 697.51 3.18 1,281.40 410.24 3.20 1,380.69 468.16 3.39
2 NEEPCO (HYDRO)
KOPILI I - - - -
KOPILI II - - - -
KHANDONG - - - -
RHEP 501.37 114.04 2.27 626.16 146.28 2.34 626.16 135.28 2.16
DHEP 43.90 30.73 7.00 88.75 48.84 5.50 88.75 46.77 5.27
KAMENG HEP 225.41 104.59 4.64 138.68 55.48 4.00 138.68 55.48 4.00
3 NEEPCO (TH)
AGBPP 875.64 367.37 4.20 884.92 331.73 3.75 884.92 303.58 3.43
AGTPP 257.48 120.32 4.67 376.98 154.21 4.09 376.98 152.76 4.05
AGTPP 2
4 NHPC Existing LgHEP 84.43 41.35 4.90 143.69 49.39 3.44 143.69 49.39 3.44
5 NTPC
FARAKKA 209.69 76.95 3.67 239.05 97.91 4.10 239.05 92.01 3.85
KAHELGAON - I 107.28 36.91 3.44 116.06 42.73 3.68 116.06 42.41 3.65
KAHELGAON -II 429.97 149.00 3.47 433.83 151.00 3.48 433.83 146.20 3.37
TALCHER 239.23 36.31 1.52 150.59 53.48 3.55 150.59 36.46 2.42
FARAKKA-III
NTPC (New) BTPS 2,328.93 1,456.42 6.25 2,620.99 1,661.95 6.34 2,279.34 1,430.61 6.28
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 113
Sl. No.
Agency/Source Tariff Order APDCL Submission APR FY 202021
Total Quantum
(MU)
Total Cost (Rs Cr)
Rate (Rs/kWh)
Total Quantum
(MU)
Total Cost (Rs Cr)
Rate (Rs/kWh)
Total Quantum
(MU)
Total Cost (Rs Cr)
Rate (Rs/ kWh)
NTPC BTPS III
6 MeECL 0.04 0.07 17.50
7 Pare HEP 173.49 88.78 5.12 210.79 103.74 4.92 210.79 105.47 5.00
8 Suryatap Solar 5.54 4.99 9.01 5.47 5.28 9.65 5.47 4.81 8.79
9 JNNSM Bundled Solar power
11.33 12.77 11.27 6.77 9.01 13.31 6.77 9.01 13.31
10 SECI Solar 41.12 25.38 6.17 37.10 23.48 6.33 37.10 23.97 6.46
11 JNNSM Bundled Coal power
30.28 9.61 3.17 46.53 21.31 4.58 46.53 19.95 4.29
12 Bilateral Sources/Traders
686.37 293.13 4.27 627.20 267.86 4.27
13 Power Exchanges - - 506.38 164.88 3.26 471.29 150.69 3.26
14 OTPC 1,567.86 484.22 3.09 1,343.03 441.52 3.29 1,343.03 456.17 3.40
15 HHPCPL (Champawati) 5.26 2.16 4.11 5.92 2.67 4.51 5.92 2.41 4.11
16 Wind Power PTC 105.25 40.87 3.88 98.78 35.83 3.63 98.78 40.43 4.09
17 SECI Wind 40.48 16.52 4.08 129.36 35.71 2.76 129.36 37.59 2.91
18 Mangdechhu 606.01 253.92 4.19 631.40 272.33 4.31 631.40 265.16 4.20
19 PTC Nikachu
20 SPV Assam 174.76 58.11 3.33 62.90 20.99 3.34 62.90 14.70 2.34
21 Power Swapping Arrangement
Sub-total 10,254.94 4,228.90 4.12 10,871.90 4,633.12 4.26 10,535.28 4,357.33 4.14
22 Renewable Energy Certificate (Solar)
22.17 11.37 13.34
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 114
Sl. No.
Agency/Source Tariff Order APDCL Submission APR FY 202021
Total Quantum
(MU)
Total Cost (Rs Cr)
Rate (Rs/kWh)
Total Quantum
(MU)
Total Cost (Rs Cr)
Rate (Rs/kWh)
Total Quantum
(MU)
Total Cost (Rs Cr)
Rate (Rs/ kWh)
23 Renewable Energy Certificate (Non-Solar)
15.59 - 10.26
24 UI Pool/Deviation Settlement Mechanism
126.91 47.76 3.76 126.91 47.76 3.76
Sub-total: 10,254.94 4,266.66 4.16 10,998.81 4,692.25 4.27 10,662.19 4,428.69 4.15
25 AEGCL Transmission Charges
358.75 0.35 368.43 377.81
26 SLDC Charges 9.68 4.68
27 PGCIL Transmission Charges
564.04 782.70 782.70
28 TOTAL 10,254.94 5,199.13 5.07 10,998.81 5,843.38 5.31 10,662.19 5,593.88 5.25
Therefore, the Commission considers total Power Purchase Cost of Rs. 5593.88 Crore in the APR for FY 2020-21.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 115
5.6 Operation and Maintenance (O&M) Expenses
5.6.1 The O&M expenses comprise Employee Expenses, R&M Expenses and A&G
Expenses.
5.6.2 Employee Expenses
APDCL has adopted the following approach for estimating Employee Cost:
a) The employee expenses arrived at in the true-up for FY 2019-20 have been
considered as base expenses for FY 2020-21;
b) CPI inflation has been computed as average increase of CPI index for the period
from FY 2017-18 to FY 2019-20, which works out to 5.30%;
c) Growth factor has been considered as 0% against approved growth factor of 1%,
as no recruitment has been done.
The Employee Cost as projected by APDCL:
Table 53: Employee Expenses projected for FY 2020-21 by APDCL (Rs. Crore)
Particulars Tariff Order
dtd.07.03.2020 APDCL
Employee Expenses for Previous Year 740.33 733.00
Growth Factor 1% 0%
CPI Inflation 4.22% 5.30%
Employee Expenses 779.26 771.83
APDCL has projected the Employee expenses of Rs.771.83 Crore for FY 2020-21.
5.6.3 Repair and Maintenance (R&M) Expenses
APDCL has proposed R&M expenses based on of Regulation 37 the MYT Regulations,
2018. APDCL has considered the value of ‘K’ of 3.50% as considered in the last Tariff
Order, and WPI as 2.96%. The R&M expenses projected by APDCL are shown in the
Table below:
Table 54: R&M Expenses for FY 2020-21 as submitted by APDCL (Rs. Crore)
Particulars Tariff Order
dtd.07.03.2020 APDCL
GFA for previous year 4,771.75 5,107.10
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 116
Particulars Tariff Order
dtd.07.03.2020 APDCL
K Factor 3.50% 3.50%
WPI Inflation 2.97% 2.96%
R&M Expenses 171.98 184.05
APDCL has projected the R&M expenses at Rs.184.05 Crore for FY 2020-21.
5.6.4 Administrative and General (A&G) Expenses
APDCL has proposed A&G expenditure based on Regulation 37 of the MYT
Regulations, 2018. APDCL has considered WPI of 2.96% and considered the
approved provision of Rs. 2 Crore in FY 2020-21. Statutory Fees have been
considered as Rs. 1.61 crore as per actuals of FY 2019-20 as against approved
amount of Rs. Rs. 3.74 crore. APDCL submitted that an amount of Rs. 3.50 crore has
been considered against the approved Special Fund of Rs. 10 crore for metering for
Energy Audit on the basis of actual works awarded till date. APDCL submitted that
many works could not be awarded due to COVID protocols. The A&G expenses
projected by APDCL are shown in the Table below:
Table 55: A&G Expenses for FY 2020-21 as submitted by APDCL (Rs. Crore)
Particulars Tariff Order
dtd.07.03.2020 APDCL
A&G Expenses for Previous Year 37.63 39.86
WPI Inflation 2.97% 2.96%
Provision 2.00 2.00
Statutory fees 3.74 1.61
Special fund for metering and
energy audit 10.00 3.50
A&G Expenses 54.49 48.15
APDCL has projected the A&G expenses at Rs.48.15 Crore for FY 2020-21.
Commission’s Analysis
5.6.5 The Commission has computed the normative O&M Expenses for FY 2020-21 as per
the MYT Regulations, 2018. Any variation between normative O&M expenses and
actual O&M Expenses shall be considered under sharing of gains and losses on
account of controllable items as per Regulation 12 of the MYT Regulations, 2018 at
the time of truing up for FY 2020-21.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 117
Employee Expenses
5.6.6 For computation of employee expenses for FY 2020-21, the Commission has adopted
the following approach:
a) The employee expenses approved after True-Up for FY 2019-20 have been
considered as base expenses for FY 2020-21;
b) CPI inflation has been computed as average increase of CPI index for the period
from FY 2017-18 to FY 2019-20, which works out to 5.35%;
c) The growth factor has been considered as 0%, due to reduction in number of
employees rather than the projected increase in number of employees.
5.6.7 Accordingly, the normative employee expenses approved in the APR for FY 2020-21
are shown in the following Table:
Table 56: Employee Expenses considered for FY 2020-21(Rs. Crore)
Particulars
Tariff Order
dtd.
07.03.2020
APDCL Approved
in APR
Employee Expenses for Previous Year 740.33 733.00 733.00
Growth Factor 1% 0% 0%
CPI Inflation 4.22% 5.30% 5.35%
Total Employee Expenses 779.26 771.83 772.24
Accordingly, the Commission approves Employee Expenses of Rs. 772.24 Cr in
the APR for FY 2020-21.
R&M Expenses
5.6.8 For computation of R&M Expenses for FY 2020-21, the Commission has considered
the following approach:
a) The Commission has considered the average increase of WPI index of FY 2017-
18 to FY 2019-20, i.e., 2.96% for computation of R & M expenses;
b) K-factor has been considered as 3.50% as approved in Tariff Order;
c) Since, K-factor has been computed on the basis of average GFA, for working out
R&M expenses for FY 2020-21, average GFA for previous year has been
considered.
5.6.9 The normative R&M expenses approved in the APR for FY 2020-21 are shown in the
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 118
following Table:
Table 57: R&M Expenses considered for FY 2020-21 (Rs. Crore)
Particulars Tariff Order
dtd. 07.03.2020 APDCL
Approved in
APR
Average GFA for previous year 4771.75 5,107.10 5,107.10
K Factor 3.50% 3.50% 3.50%
WPI Inflation 2.97% 2.96% 2.96%
R&M Expenses 171.98 184.05 184.04
Therefore, the Commission approves R&M Expenses of Rs. 184.04 crore in the
APR for FY 2020-21.
A&G Expenses
5.6.10 For computation of A&G expenses for FY 2020-21, the Commission has adopted the
following approach:
a) The A&G expenses approved after Truing up for FY 2019-20 have been
considered as base expenses for FY 2020-21;
b) Similar to R&M expenses, WPI inflation has been considered as 2.96%;
c) For APR of FY 2020-21, the Commission has considered a provision of Rs. 2
Crore, as approved in the Tariff Order dated March 7, 2020;
d) The actual statutory fees of Rs. 1.61 crore of FY 2019-20 have been considered
as a separate pass-through item, and added to the normative A&G expenses
computed for FY 2020-21 as above;
e) The Special Fund for metering for Energy Audit has been considered as Rs. 3.50
crore, as estimated by APDCL, against the amount of Rs. 10 crore approved in the
Tariff Order dated March 7, 2020, in view of the reduced expenses on account of
COVID protocols.
5.6.11 The normative A&G expenses approved in the APR for FY 2020-21 are shown in the
following Table:
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 119
Table 58: A&G Expenses considered for FY 2020-21 (Rs. Crore)
Particulars
Tariff Order
dtd.07.03.2020 APDCL
Approved
in APR
A&G Expenses for Previous Year 37.63 39.86 37.63
WPI Inflation 2.97% 2.96% 2.96%
Provision 2.00 2.00 2.00
Statutory Fees 3.74 1.61 1.61
Special Fund for metering for Energy Audit 10.00 3.50 3.50
A&G Expenses 54.49 48.15 45.86
Therefore, the Commission approves A&G Expenses of Rs. 45.86 crore in the
APR for FY 2020-21.
5.7 Capital Investment and Financing of Capital Investment
5.7.1 APDCL submitted that it has estimated the capital expenditure and capitalisation in
APR for FY 2020-21 based on the estimates of the capital expenditure works carried
on till date vis-à-vis budgetary allocation and pending CWIP.
5.7.2 APDCL has projected total Capital Expenditure and Capitalisation of Rs. 503.97 Crore
and Rs. 2641.91 Crore, respectively, during FY 2020-21. APDCL proposed to fund the
capitalisation of Rs. 2641.91 Crore during FY 2020-21, as shown in the Table below:
Table 59: Proposed financing of Capitalization for FY 2020-21 (Rs. Crore)
Particulars Amount
Debt 430.51
Equity 0.00
Grant 2211.40
Total 2641.91
Commission’s Analysis
5.7.3 The Commission has verified the actual capitalization achieved by APDCL in the past
three years, i.e., FY 2017-18 to FY 2019-20, as shown in the Table below:
Table 60: Actual Capitalization for FY 2017-18 to FY 2019-20 (Rs. Crore)
Particulars FY 2017-18 FY 2018-19 FY 2019-20
Actual
Capitalisation 211.46 611.93 1343.09
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 120
5.7.4 As seen from the above Table, based on the actual capitalization of last three years,
it can be observed that capitalisation is showing an increasing trend. In FY 2019-20,
actual capitalisation of APDCL was Rs.1343.09 Crore. In reply to the Commission’s
query regarding the delay in capitalisation due to impact of COVID, APDCL submitted
that a delay of around 6 months is expected in execution of Projects due to COVID.
Hence, the Commission has considered 50% of capitalisation estimated by APDCL for
FY 2020-21, i.e., Rs. 1320.96 Crore, which appears realistic, as it is very close to the
actual capitalisation achieved in FY 2019-20.
5.7.5 It is clarified that APDCL is at liberty to achieve capitalisation higher than the
considered amount. The Commission will approve the Capitalisation at the time of
truing up, subject to prudence check.
5.7.6 The Commission has not considered any equity funding of the estimated capitalisation,
based on APDCL’s submissions, and has considered the capitalisation to be funded
through Grants and Debt in the standard ratio of 90:10, based on past experience.
5.7.7 The Capitalisation and funding of Capitalisation approved by the Commission in the
APR of FY 2020-21, is given in the Table below:
Table 61: Capitalization and Funding for FY 2020-21 (Rs. Crore)
Particulars Tariff Order
dtd.07.03.2020
APDCL Approved by
Commission
Grant 585.00 430.51 1188.86
Equity 0.00 0.00 -
Debt 65.00 2211.40 132.10
Total Capitalisation 650.00 2641.91 1320.96
Therefore, the Commission provisionally approves Capitalisation of Rs. 1320.96 crore
in the APR for FY 2020-21.
5.8 Depreciation
5.8.1 The Commission had approved depreciation of Rs. 24.22 Crore for FY 2020-21 in line
with the depreciation rates specified in MYT Regulations, 2018.
5.8.2 APDCL submitted that Depreciation has been claimed in accordance with the MYT
Regulations, 2018, after apportionment of depreciation for assets created out of
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 121
Consumer Contribution and Grants. APDCL added that the assets, which have been
depreciated to the extent of 90% of original cost are excluded from the asset base for
the purpose of calculating depreciation.
5.8.3 Total amount of depreciation claimed by APDCL is Rs. 42.67 Crore after adjustment
of funding from grant of Rs. 49.50 Crore.The depreciation projected by APDCL for FY
2020-21 is shown in the Tables below:
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 122
Table 62: Depreciation calculation for FY 2020-21 as submitted by APDCL (Rs. Crore)
Particulars
Gross Fixed Assets Depreciation
As on
01.04.20
Net addition
during the
year
Rate of
Depreciation
Assets fully
depreciated
On
Opening
Balance
On
Addition Total
Land & Rights
i) Land owned under full title 18.74 0.16 - - -
ii) Leasehold land 2.84 2.98 3.34% 0.09 0.04 0.13
Subtotal: 21.58 3.14
- 0.09 0.04 0.13
Building 56.97 1.11 3.34% 7.32 1.49 0.02 1.51
Hydraulic - -
- - -
Other Civil Works 58.62 1.94 3.34% 5.91 1.58 0.03 1.61
Plant & Machinery 723.62 83.84 5.28% 213.74 24.23 26.22
Lines & Cable Network 1,316.91 334.27 5.28% 442.45 41.55 7.94 49.50
Vehicles 27.25 0.50 5.28% 11.34 0.76 0.01 0.77
Furniture & Fixtures 18.23 0.64 6.33% 9.98 0.47 0.02 0.49
Office Equipment 35.61 5.00 6.33% 23.57 0.69 0.14 0.83
SUB TOTAL 2,258.79 430.45 3.59% 714.31 70.86 10.20 81.06
Add: Consumers
contribution etc 233.81 0.13 5.28% 11.11 0.00 11.11
Add: Assets not belonging to
the entity 3,286.06 2,211.33
- -
5,778.65 2,641.91 714.31 81.97 10.20 92.17
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 123
Table 63: Depreciation claimed by APDCL for FY 2020-21 (Rs. Crore)
Particulars
State Govt. grant
Grant for assets not
belonging to entity
(RGGVY, MNRE etc.)
Consumer
Contribution Total
As on
01.04.2005
As on
01.04.2020 Sub total As on 01.04.2020
Grants Available - 4,383.43 4,383.43 6,251.95 233.81 10,869.18
GFA (excluding Consumer
Contribution and assets not
belonging to company)
765.43 1,493.36 2,258.79 3,286.06 233.81 5,778.65
CWIP 330.20 3,252.45 3,582.65 2,211.33
5,793.98
Total 1,095.63 4,745.81 5,841.44 5,497.39 233.81 11,572.64
Cumulative grants apportioned in
the ratio of GFA and CWIP
GFA - 1,379.33 1,379.33 3,737.09 233.81 5,350.23
CWIP - 3,004.10 3,004.10 2,514.85 5,518.95
Total - 4,383.43 4,383.43 6,251.95 233.81 10,869.18
Depreciation calculated as per the
Regulation on the GFA 27.47 53.59 81.06 - 11.11 92.17
Weighted Average Rate of
Depreciation (%) 3.59% 3.59% 3.59% - 4.75% 1.59%
Depreciation to be deducted on the
assets built on the grants
componentvalue
- 49.50 49.50 - 49.50
Depreciation claimed 27.47 4.09 31.56 - 11.11 42.67
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 124
Commission’s Analysis
5.8.4 For computation of depreciation, the Commission has considered the closing GFA for
FY 2019-20 as approved in this Order as the Opening GFA for FY 2020-21. The
capitalisation approved for FY 2020-21 has been considered as asset addition during
the year. The Commission has considered the scheduled depreciation rates as
specified in MYT Regulations, 2018.
5.8.5 As per the MYT Regulations, 2018, the total depreciation during the life of the asset
shall not exceed 90% of the original cost of GFA. The Commission has computed the
depreciation separately for assets added under each asset head in each year. The
Commission has disallowed the depreciation on assets where depreciation is in
excess of 90% of the original cost of asset under different asset heads. The
Commission has not considered depreciation on assets funded through grants and
consumer contribution, in accordance with Regulations 30 and 32 of MYT Regulations,
2018.
5.8.6 In view of the above, the Commission has approved depreciation in the APR for FY
2020-21 as per MYT Regulations, 2018, as given in the Table below:
Table 64: Depreciation considered for FY 2020-21 (Rs. Crore)
Sl. Particulars Opening
GFA
Addition
during
the year
Rate of
depreciation
Depreciation
as per MYT
Regulations,
2018
1 Land & Rights 18.75 0.34 -
2 Leasehold Land 2.84 - 3.34% 0.09
3 Building 56.96 2.37 3.34% 1.94
4 Plant & Machinery 723.62 12.27 5.28% 27.21
5 Vehicle 27.24 - 5.28% 1.47
6 Furniture & Fixtures 18.23 1.43 6.33% 0.61
7 Office Equipment 35.61 10.91 6.33% 2.39
8 Other Civil Work 58.62 4.14 3.34% 2.03
9 Lines & Cable Network 1,316.91 100.64 5.28% 50.78
10 Total 2,258.78 132.10 86.54
11 Opening GFA excluding land 5,757.06
12 Closing GFA excluding land 7,076.45
13 Average Grant towards GFA 6,118.74
14 Less: Depreciation for Grants 82.53
13 Net Depreciation Allowed 4.02
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 125
Accordingly, the Commission approves Depreciation of Rs. 4.02 crore in the APR for
FY 2020-21.
5.9 Interest on Loan Capital
5.9.1 The Commission had approved normative interest and finance charges of
Rs. 37.24 Crore in the Tariff Order for FY 2020-21.
5.9.2 APDCL submitted that it has projected interest on loan capital based on the existing
source-wise outstanding loans, repayment schedule and prevailing interest rates.
Presently, APDCL has loans from GoA and PFC. In order to reduce interest burden
and to achieve financial turnaround, APDCL has joined UDAY Scheme. The UDAY
MoU was executed on 4th January, 2017 and conversion of GoA loan into grant and
equity has materialized in FY 2020-21 with all approvals in place.
5.9.3 APDCL has claimed interest and finance charges in line with the approach followed in
Tariff Orders with addition of Bank Charges and Charges paid to Billdesk for online
payment facilitation to consumers. Bank charges, etc., have been projected with 5%
escalation over actuals of FY 2019-20. With more consumers availing digital platforms,
estimated facilitation charges to Billdesk have been escalated by 15% over actuals of
FY 2019-20.
5.9.4 Accordingly, APDCL has submitted interest expenses for FY 2020-21 as shown in the
Table below:
Table 65: Interest Expenses as submitted by APDCL for FY 2020-21 (Rs. Crore)
Particulars Tariff Order
dtd. 07.03.2020
APDCL
Net Normative Opening Loan 684.36 593.70
Addition of normative loan during the year (619.36) 430.51
Normative Repayment during the year 24.22 42.67
Net Normative Closing Loan 40.78 981.54
Interest Rate 9.40% 10.74%
Interest Expenses 34.08 105.40
Other Finance Charges 3.16 2.81
Billdesk Charges for collecting Revenue 2.90
Total Interest and Finance Charges 37.24 111.12
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 126
APDCL has claimed Interest Expenses of Rs.111.12 Crore for FY 2020-21.
Commission’s Analysis
5.9.5 Interest on loan for FY 2020-21 is required to be allowed on normative basis as per
Regulation 34 of MYT Regulations, 2018. Accordingly, the normative closing loan for
FY 2019-20 of Rs. 692.86 Crore is considered as the normative loan outstanding as
on April 1, 2020.
5.9.6 The Commission has considered the normative addition of loan during FY 2020-21
towards capitalisation, as Rs. 132.10 Crore, as stated earlier. Under the UDAY MoU,
which has finally materialised in FY 2020-21 as confirmed by APDCL, the GoA has
converted 75% of the outstanding loans on APDCL’s books as on September 2015
(i.e., Rs. 849.40 Crore) into Grants, and the balance 25% of the outstanding loans as
on September 2015 (i.e., Rs. 283.13 Crore) has been converted into equity. However,
the Commission allows interest expenses on normative basis, and the outstanding
opening loans for FY 2020-21 are only Rs. 692.86 Crore. As the amount of loans
converted to Grants by GoA is higher than the outstanding opening loans for FY 2020-
21, the entire opening loan of Rs. 692.86 Crore has been considered as converted to
Grant by the GoA under UDAY MoU, in order to pass on the benefits of this loan
conversion to Grant to the intended beneficiaries, i.e., the consumers. Hence, the net
loan reduction in FY 2020-21 works out to Rs. 560.76 Crore (Rs. 692.86 Crore – Rs.
132.10 Crore), which has been considered for computing the normative interest
expenses for FY 2020-21.
5.9.7 The loan repayment has been considered equivalent to depreciation approved for FY
2020-21 in this Order. The Commission has considered the Interest rate of 10.00% for
new loans, in accordance with the UDAY MoU.
5.9.8 The Other Financing Charges and Billdesk Charges have been escalated by 5% over
the actual amounts incurred in FY 2019-20, for estimating the expenses for FY 2020-
21.
5.9.9 The interest on loan capital approved by the Commission in the APR for FY 2020-21
is shown in the following Table:
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 127
Table 66: Interest on Loan Capital considered for FY 2020-21 (Rs. Crore)
Particulars Tariff Order
dtd. 07.03.2020
APDCL Approved in
APR
Net Normative Opening Loan 684.36 593.70 692.86
Addition of normative loan during the year (619.36) 430.51 (560.76)
Normative Repayment during the year 24.22 42.67 4.02
Net Normative Closing Loan 40.78 981.54 128.08
Interest Rate 9.40% 10.74% 10.00%
Interest Expenses 34.08 105.40 41.05
Other Finance Charges 3.16 2.81 2.81
Bill Desk Charges for collecting Revenue 2.90 2.65
Total Interest and Finance Charges 37.24 111.11 46.51
Therefore, the Commission approves Interest Expenses of Rs. 46.51 Crore in the
APR for FY 2020-21.
5.10 Interest on Working Capital
5.10.1 APDCL submitted that it has projected IoWC on normative basis as per MYT
Regulations, 2018. For the purpose of APR of FY 2020-21, APDCL has not claimed
any interest on working capital, as the normative working capital requirement works
out to be negative.
5.10.2 Commission’s Analysis
5.10.3 The Commission has computed IoWC in accordance with Regulations 36.3 and 36.4
of the MYT Regulations, 2018. In line with the approach followed in the true-up for FY
2019-20, the expenses on account of power purchase from Power Exchanges have
not been reduced, while reducing the power purchase expenses, as advance payment
has to be made to the Power Exchanges. The normative interest rate has been
considered as SBI MCLR (one-year tenor) plus 300 basis points, i.e., 10.00%.
5.10.4 The IoWC approved by the Commission in the APR for FY 2020-21 is shown in the
following Table:
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 128
Table 67 : IoWC considered by the Commission for FY 2020-21 (Rs. Crore)
Particulars MYT
Order APDCL
Approved
in APR
One month of the amount of O&M expenses 83.81 83.67 83.51
Maintenance spares @15% of O&M expenses 150.63 150.60 150.32
Two months equivalent of expected revenue
from sale of electricity
921.24 840.73 912.32
Less: One-month Power Purchase Cost 433.26 473.21 453.60
Less: Amount held as CSD 850.73 722.07 763.51
Total Working Capital Requirement (128.31) (120.28) (70.95)
Rate of Interest 11.50% 10.91% 10.00%
Interest on Working Capital - - -
Therefore, the Commission considers IoWC as Nil in the APR for FY 2020-21.
5.11 Interest on Consumers’ Security Deposit
5.11.1 APDCL submitted that with successful roll out of software facilitating automatic
adjustment of interest on CSD in energy bills, the liquidation of liability on such account
has significantly increased. Considering the improving trend, an amount of Rs. 38.06
Crore (actuals for FY 2019-20) is estimated as interest on CSD in the APR for FY
2020-21.
5.11.2 Commission’s Analysis
5.11.3 The Commission has considered the submission of APDCL for FY 2020-21. The
Commission, therefore, approves interest on CSD of Rs. 38.06 Crore in the APR of
FY 2020-21.
5.12 Provision for Bad and Doubtful Debts
5.12.1 APDCL has projected the Provision for Bad & Doubtful Debts of Rs. 22.10 Crore in
line with the amount for FY 2019-20.
Commission’s Analysis
5.12.2 For the purpose of APR, the Commission has considered the provision for bad &
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 129
doubtful debts at the same level as the Trued-up amount for FY 2019-20, i.e., Rs 22.10
Crore, as the cumulative provisioning of bad and doubtful debts is lower than the
ceiling limit of 5% of receivables. The provision for bad & doubtful debts will be finally
approved at the time of truing up when actual data is available.
5.13 Return on Equity
5.13.1 APDCL has submitted that the authorized share capital of APDCL has been enhanced
to Rs. 5000 Crore to materialize the conversion of loan/grant to equity. APDCL
submitted that the GoA has also accorded approval for conversion of loan worth Rs.
283 Crore under UDAY and Grant worth Rs. 1261 Crore to equity. APDCL has
accordingly claimed RoE of Rs. 156.69 Crore in the APR for FY 2020-21.
Commission’s Analysis
5.13.2 The Commission has verified the documentary evidence submitted by APDCL for the
conversion of Grants worth Rs. 1261 crore to Equity by the GoA in FY 2020-21.
5.13.3 In this regard, it should be noted that in accordance with the applicable Tariff notified
by the Commission for different periods, the capitalisation till date has been approved
based on the typical funding of 90:10 Grant:Debt, with zero equity funding. The
Commission’s with the applicable Tariff specify that the Debt:Equity funding of
capitalisation is to be considered, after reducing the capital cost to the extent of funding
from Grant/Consumer Contribution. Further, equity funding can be considered up to
maximum of 30% of the balance capitalisation to be funded, irrespective of the actual
equity invested by the Licensee.
5.13.4 The conversion of Grants to Equity by the GoA in FY 2020-21 has to accordingly be
considered in accordance with the Commission’s MYT Regulations,2018. The GoA
has converted Grants worth Rs. 1261 Crore to equity, out of the total average Grants
of Rs. 6118.74 Crore in FY 2020-21. Hence, the balance Grant funding available to
fund the Average GFA of Rs. 6439.12 Crore works out to Rs. 4857.74 Crore, i.e., the
GFA to be funded by Debt:Equity is Rs. 1581.38 Crore. Considering maximum 30%
equity funding, the maximum equity funding allowable works out to Rs. 474.41 Crore.
As the Opening Equity of Rs. 162.77 Crore has already been allowed by the
Commission in the Tariff Orders, the maximum additional equity that can be
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 130
considered for tariff computation purposes, on account of conversion of Grants to
Equity, thus, works out to Rs. 311.64 Crore, as shown in the Table below:
Table 68: Equity Addition allowed by the Commission due to Conversion of Grant to
Equity in FY 2020-21 (Rs. Crore)
5.13.5 The Commission has accordingly considered equity addition of Rs. 311.64 Crore in
FY 2020-21, and approved the RoE in accordance with MYT Regulations, 2018. The
Commission has considered the addition of Nil equity towards new Capitalisation for
FY 2020-21, based on the funding of capitalisation approved in this Order. Therefore,
the computation of RoE for FY 2020-21 at 16% is shown in the Table below:
Table 69: Return on Equity considered by the Commission for FY 2020-21 (Rs. Crore)
Therefore, the Commission considers RoE of Rs. 50.97 crore in the APR for FY
2020-21.
5.14 Other Income
5.14.1 APDCL has projected Other Income for FY 2020-21, on the basis of actuals for FY
Sr.
No. Particulars
Approved
in APR
1 Average GFA 6,439.12
2 Average Grant towards GFA 6,118.74
3 Grants converted to Equity 1261.00
4 Net Grant towards GFA 4,857.74
5 Net GFA to be funded 1,581.38
6 Maximum Equity that can be considered 474.41
7 Equity already allowed 162.77
8 Equity that can be additionally allowed 311.64
Sr.
No. Particulars
Tariff
Order dtd.
07.03.2020
APDCL Approved
in APR
1 Opening Equity Capital 162.77 162.77 162.77
2 Equity addition during the year 1,633.06 311.64
3 Closing Equity 162.77 1,795.83 474.41
4 Average Equity 162.77 979.30 318.59
5 Rate of Return on equity 16.00% 16.00% 16.00%
6 Return on Equity 26.04 156.69 50.97
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 131
2019-20, except for the following:
(a) Miscellaneous receipt has been escalated by 5%;
(b) Seasonal export is estimated based on surplus energy estimate for FY 2020-
21 at the rate of Rs. 2.35/kWh (off-peak/night hours);
(c) Considering the high attrition ratio, receipt from pension trust is considered with
3% decline.
5.14.2 APDCL has projected Other Income for FY 2020-21, as shown in the Table below:
Table 70: Other Income as submitted by APDCL for FY 2020-21 (Rs. Crore)
Particulars Tariff Order
dtd. 07.03.2020 APDCL
Interest on fixed deposits 143.01 94.09
Income from Trading 165.16 386.00
Income from Sale of Scrap 0.23
Revenue from sale of LED's, Tubelight, Fan, etc. 5.97 0.92
Rent from residential buildings 0.02 0.02
Receipt from Pension Trust 73.24 65.09
Miscellaneous receipts 129.52 44.80
Total 516.92 591.16
APDCL has estimated ‘Other Income’ of Rs. 591.16 Crore in the APR for FY 2020-21.
Commission’s Analysis
5.14.3 The Commission has projected the Other Income for FY 2020-21, by considering an
increase of 5% over the Trued-Up Other Income during FY 2019-20, except for Interest
on Fixed Deposits and income from sale of scrap, and receipt from Pension Trust,
which have been considered at FY 2019-20 levels. The revenue from sale of surplus
energy has been considered as per the approved Energy Balance for FY 2020-21. The
per unit rate for sale of surplus power has been considered at Rs. 2.52 per unit, i.e.,
actual rate for sale of surplus power in FY 2019-20.
5.14.4 The Commission has approved Other Income in the APR for FY 2020-21 as shown in
the Table below:
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 132
Table 71: Other Income considered for FY 2020-21 (Rs. Crore)
Particulars
Tariff Order
dtd.
07.03.2020
APDCL Approved
in APR
Interest on fixed deposits 143.01 94.09 94.09
Income from Trading 165.16 386.00 413.86
Income from Sale of Scrap 0.23 0.23
Revenue from sale of LED's, Tubelight,
Fan, etc.
5.97 0.92 0.11
Rent from residential buildings 0.02 0.02 0.02
Receipt from Pension Trust 73.24 65.09 67.10
Miscellaneous receipts 129.52 44.80 44.80
Total 516.92 591.16 620.21
Therefore, the Commission has estimated Other Income of Rs. 620.21 crore in
the APR for FY 2020-21.
5.15 Non-Tariff Income
5.15.1 APDCL submitted that it has projected NTI considering escalation of 5% over the NTI
of FY 2019-20, except for the following heads:
(a) Delayed Payment Charge is reduced by 5% considering the COVID relaxation
by the Commission;
(b) Inclusion of rebate from CPSU Gencos in line with Advisory from MoP;
(c) STOA credit on PoC bill, income from reactive power as well as SCED are kept
at same level of FY 2019-20, considering the uncertainty.
5.15.2 Accordingly, APDCL estimated NTI of Rs. 450.63 Crore for FY 2020-21, as shown in
the Table below:
Table 72: Non-Tariff Income as submitted by APDCL for FY 2020-21 (Rs. Crore)
Particulars
Tariff
Order dt.
07.03.2020 APDCL
Meter Rent 24.73 23.17
Compensation charges for theft of
energy/malpractices
1.86 0.40
Cross Subsidy surcharge on Open Access Consumer 31.27 35.48
Wheeling Charges collected 5.92 4.55
Short-term Open Access Credit 60.06
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 133
Particulars
Tariff
Order dt.
07.03.2020 APDCL
Rebate on PP bills 21.12 82.73
Miscellaneous Recoveries 21.68 22.51
Other Miscellaneous and General Charges
a) Delayed payment charges 190.78 216.16
b) Income on Reactive Power 0.21
c) Income from SCED 5.36
Grand Total 297.36 450.63
Commission’s Analysis
5.15.3 The Commission has considered annual increase of 5% over the approved NTI for FY
2019-20, except for the following heads of NTI:
(a) Meter rent, short-term OA Credit, and Miscellaneous Income, which have been
considered at the same level as in FY 2019-20;
(b) The rebate received by APDCL due to prompt payment on power purchase bills
has not been considered, in accordance with the approach elaborated in the
truing-up for FY 2019-20;
(c) The rebate of Rs. 69.99 crore received from CPSU’s in accordance with the
MoP Advisory has been considered, in order to pass on the benefit of the same
to the intended beneficiaries, i.e., the consumers;
(d) The income from DPC has been considered lower by 5%, based on the
rationale proposed by APDCL.
5.15.4 The following Table shows the Non-Tariff Income approved in the APR for FY 2020-
21:
Table 73: Non-Tariff Income as considered by Commission for FY 2020-21 (Rs. Crore)
Particulars
Tariff
Order dtd.
07.03.2020
APDCL Approved
in APR
Meter Rent 24.73 23.17 23.17
Compensation charges for theft of energy 1.86 0.40 0.40
Cross Subsidy Surcharge on Open Access
Consumer
31.27 35.48 35.48
Wheeling Charges 5.92 4.55 4.55
Short-term Open Access Credit 60.06 60.06
Rebate on PP bills 21.12 82.73 69.99
Miscellaneous Recoveries 21.68 22.51 22.51
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 134
Particulars
Tariff
Order dtd.
07.03.2020
APDCL Approved
in APR
Other Miscellaneous and General Charges
(specify)
-
a) Delayed payment charges 190.78 216.16 228.16
b) Income on Reactive Power 0.21 0.21
c) Income from SCED 5.36 5.36
Grand Total 297.36 450.63 449.89
Accordingly, the Commission has considered Non-Tariff Income of Rs. 449.89
Crore in the APR for FY 2020-21.
5.16 Revenue from sale of electricity at existing Tariff
5.16.1 APDCL has considered the revenue from sale of electricity for FY 2020-21, based on
approved tariff and the consumer profile. APDCL has considered the full-cost tariff,
without considering any targeted subsidy, for the purposes of estimating the revenue
from sale of electricity at existing tariff. Accordingly, APDCL has projected the Revenue
from Sale of Power at existing tariffs for FY 2020-21, as Rs. 5344.36 Crore.
Commission’s Analysis
5.16.2 The Commission has estimated the Revenue from sale of electricity at existing tariff
based on the applicable tariff, as per the Tariff Order dated March 7, 2020, and the
projected category-wise sales for FY 2020-21. The Commission has considered the
full-cost tariff, without considering any Targeted Subsidy, for the purposes of
estimating the revenue from sale of electricity at existing tariff.
5.16.3 The Revenue from Sale of Electricity from existing tariff has been computed by
the Commission as Rs. 5,473.94 Crore in the APR for FY 2020-21.
5.17 Other Subsidy from GoA
5.17.1 APDCL has submitted that although GoA vide No. PEL.323/2015/160 dated
04.03.2020 has committed Other Subsidy of Rs. 400 Crore, budgetary allocation was
made for Rs. 300 Crore only, and supplementary demand for balance Rs. 100 Crore
is being processed. In the absence of approval of supplementary demand, actual
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 135
budgeted amount of Rs. 300 Crore has been considered by APDCL.
Commission’s Analysis
5.17.2 The GoA has committed power purchase subsidy of Rs. 400 Crore against power
purchase dues for FY 2020-21. As the Commission has considered the entire power
purchase cost in the ARR, the Commission has considered the entire subsidy
commitment of Rs. 400 Crore, rather than Rs. 300 Crore as considered by APDCL.
5.18 ARR and Revenue Gap/(Surplus)
5.18.1 Considering the above heads of expense and revenue provisionally approved in the
APR for FY 2020-21, the summary of ARR and Revenue Gap/(Surplus) approved by
the Commission in the APR for FY 2020-21 is given in the Table below:
Table 74 :ARR & Revenue Gap/ (Surplus) considered by the Commission for FY 2020-
21 (Rs. Crore)
Sl. No.
Particulars Tariff Order dt. 07.03.2020
APDCL Approved in APR
1 Power Purchase Expenses 5,199.13 5,843.38 5,593.88
2 O&M Expenses 1,005.73 1,004.03 1,002.14
a) Employee Expenses 779.26 771.83 772.24
b) R&M Expenses 171.98 184.05 184.04
c) A&G Expenses 54.49 48.15 45.86
3 Depreciation 24.22 42.67 4.02
4 Interest and Finance Charges 37.24 111.12 46.51
5 Interest on Working Capital - - -
6 Interest on CSD 33.85 38.06 38.06
7 Return on Equity 26.04 156.69 50.97
8 Provisioning for Bad & Doubtful Debts 15.52 22.10 22.10
9 Total Expenditure 6,341.73 7,218.05 6,757.68
10 Less: Non-Tariff Income 297.36 450.62 449.89
11 Less: Other Income 516.92 591.16 620.21
12 Aggregate Revenue Requirement 5,527.45 6,176.25 5,687.57
13 Revenue Gap after True Up of FY 2018-19
525.45 525.45
14 Net Carrying Cost 123.74 123.74
15 Impact of True-Up of APGCL for FY 2019-20, along with holding cost
(20.40) (20.40)
16 Impact of True-Up of AEGCL for FY 2019-20, along with holding cost
(5.32) (5.32)
17 Net ARR 6,150.91 6,176.25 6,311.04
18 Revenue at Approved Tariff 6,150.91 5,344.36 5,473.94
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 136
Sl. No.
Particulars Tariff Order dt. 07.03.2020
APDCL Approved in APR
19 Power Purchase Subsidy 300.00 400.00
20 Total Revenue including Subsidy 6,150.91 5,644.36 5,873.94
21 Cumulative Revenue Gap/(Surplus) - 531.91 437.11
Accordingly, the Commission has arrived at a Revenue Gap of Rs 437.11 Crore in
the APR of FY 2020-21. The same has not been adjusted in this Order, as this is
only a provisional number. The Revenue Gap/(Surplus) after true-up for FY 2020-21
shall be adjusted in the ARR of FY 2022-23.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 137
6 ARR for FY 2021-22
6.1 Introduction
6.1.1 This Chapter deals with the determination of ARR for FY 2021-22, in accordance with
the provisions of MYT Regulations, 2018 and the submissions made by APDCL.
6.2 Energy Sales
6.2.1 Appropriate estimation of category-wise energy sales for the year is essential to arrive
at the quantum of power to be purchased and the likely revenue from sale of energy.
This Section examines in detail the consumer category-wise energy sales projected by
APDCL in its Tariff Petition and the category-wise sales approved by the Commission
for FY 2021-22.
6.3 Category-Wise Energy Sales
6.3.1 APDCL submitted that the projections of energy sales for FY 2021-22 have been
revised based on actual energy sales for FY 2019-20 and average of decadal
Compounded Annual Growth Rate (CAGR). APDCL added that consumption for FY
2020-21 is significantly affected in the wake of COVID and the sales are expected to
remain almost at the FY 2019-20 levels.
6.3.2 In this backdrop and considering gradual resumption of economic activities, APDCL
has projected sales for FY 2021-22 based on appropriate CAGR over FY 2019-20
levels and not on estimated sales for FY 2020-21.
6.3.3 APDCL has considered actual addition of households under SAUBHAGYA vis-à-vis
extension thereon. Due to proper implementation of the Commission’s directive
regarding switching over of Jeevan Dhara consumers to Domestic-A category once
the consumption exceeds the threshold limit of 30 kWh/month; sharp decline in Jeevan
Dhara consumption has been recorded. Hence, for better estimates, Jeevan Dhara
and Domestic-A category have been considered as a block.
6.3.4 The category-wise sales projected by APDCL for FY 2021-22 are given in the Table
below:
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 138
Table 75: Category-wise Energy Sales Projected by APDCL for FY 2021-22 (MU)
Commission’s Analysis
6.3.5 As stated in the APR of FY 2020-21, the Commission has accepted the category-wise
sales projected by APDCL, in view of the COVID impact, which has disrupted the past
patterns of consumption. Hence, for assessing the trend of growth in consumption, the
Commission has excluded the FY 2020-21 estimates, and considered the trued-up
category-wise sales for FY 2019-20 as the base figure.
Consumer Category
MYT
Order dtd.
01.03.2019
APDCL
JEEVAN DHARA 869 479
DOMESTIC A - below 5 kW 3974 3,611
Domestic-B - 5 kW and above up to 25 kW 407 451
Commercial Load above 0.5 kW and up to 25 kW 738 887
General Load up to 25 kW 99 155
Public Lighting 13 18
Agriculture up to 25 kW 34 49
Small Industries Rural up to 25 kW 80 91
Small Industries Urban up to 25 kW 30 37
LT Electric Vehicles Charging Stations 0 -
Temporary 12 6
LT TOTAL 6,256 5,782
HT Domestic above 25 kW (30 kVA) 31 21
HT Commercial above 25 kW (30 kVA) 415 393
Public Water Works 71 86
Bulk Supply Govt. Edu Inst above 25 kW (30 kVA) 76 82
Bulk Supply Others above 25 kW (30 kVA) 399 394
HT Small Industries above 25 kW (30 kVA) and up
to 50 kVA
23 19
HT Industries-I 50 kVA to 150 kVA 67 110
HT Industries-II above 150 kVA 908 931
Tea Coffee & Rubber 624 466
Oil & Coal 76 67
HT Irrigation Load above 25 kW (30 kVA) 15 15
HT Temporary - -
HT Electric Crematorium 0.5 -
HT Electric Vehicles Charging Station - -
HT TOTAL 2,706 2,585
TOTAL 8,962 8,366
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 139
6.3.6 The 2-year, 3-year, 4-year, 5-year CAGR has been computed along with the Y-o-Y
growth seen in the consumer categories. Reasonable estimates about the growth rates
of the various consumer categories have been made to arrive at the energy sales
forecast for FY 2021-22. In case the growth trend in recent years is negative, the
Commission has considered 0% growth rate for those consumer categories. The
Commission has considered the same growth rate for Jeevan Dhara and Domestic A
categories, in view of the trend of migration from Jeevan Dhara category to Domestic
A category, due to exceeding the consumption limit.
6.3.7 The growth rate considered for projecting the sales to different categories of
consumers for FY 2021-22 is as shown in the Table below:
Table 76: Growth rates considered for various categories for FY 2021-22
Category
Growth rate
considered Remarks
Jeevan Dhara & Domestic A 0.5 kW to 5 kW 6% 4-year CAGR
Domestic-B above 5 kW to 25 kW 12% 5-year CAGR
Commercial Load above 0.5 to 25 kW 8% 5-year CAGR
General Load up to 25 Kw 4% 4-year CAGR
Public Lighting 3% 4-year CAGR
Agriculture up to 7.5 HP 26% 5-year CAGR
Small Industries Rural up to 25 kW 10% 5-year CAGR
Small Industries Urban 4% 5-year CAGR
Temporary 0% No growth
HT Domestic 25 kW and above 0% No growth
HT Commercial 25 kW above 0% No growth
Public Water Works 5% 4-year CAGR
Bulk Supply Govt. Edu Inst 1% 5-year CAGR
Bulk Supply Others 0% No growth
HT Small Industries up to 50 kW 0% No growth
HT Industries-1 50 kW to 150 kW 4% 5-year CAGR
HT Industries-II above 150 kW 3% 4-year CAGR
Tea Coffee & Rubber 2% 5-year CAGR
Oil & Coal 0% No growth
HT Irrigation Load above 7.5 HP 0% No growth
6.3.8 The category-wise sales approved by the Commission for FY 2021-22 is given in the
Table below:
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 140
Table 77: Category-wise Energy Sales approved for FY 2021-22 (MU)
Category MYT Order dtd.
01.03.2019 APDCL
Approved in
this Order
JEEVAN DHARA 869 479 452
DOMESTIC A 3974 3,611 3,407
Domestic-B above 5 kW to 25 kW 407 451 449
Commercial Load above 0.5 to 25 kW 738 887 882
General Load up to 25 kW 99 155 147
Public Lighting 13 18 17
Agriculture up to 7.5 HP 34 49 50
Small Industries Rural up to 25 kW 80 91 95
Small Industries Urban 30 37 37
LT Electric Vehicles Charging Stations - - -
Temporary 12 6 6
LT TOTAL 6,256 5,782 5,543
HT Domestic 25 kW and above 31 21 21
HT commercial 25 kW & above 415 393 355
Public Water works 71 86 88
Bulk Supply Govt. Edu Inst 76 82 79
Bulk Supply Others 399 394 380
HT Small Industries up to 50 kW 23 19 18
HT Industries-I 50 kW to 150 kW 67 110 101
HT Industries-II above 150 kW 908 931 902
Tea Coffee& Rub 624 466 468
Oil & Coal 76 67 65
HT Irrigation Load above 7.5 HP 15 15 15
HT Temporary - - 2
HT Electric Crematorium 0.5 - -
HT Electric Vehicle Charging Station - - 0.2
HT TOTAL 2,706 2,585 2,494
TOTAL ENERGY SALES 8,962 8,366 8,037
Therefore, the Commission approves total sales of 8037 MU for FY 2021-22.
6.4 Distribution Loss
6.4.1 The Commission had approved distribution loss of 15.00% for FY 2021-22 in the MYT
Order dated March 01, 2019.
6.4.2 APDCL submitted that with the massive increase in LT consumers without adequate
HT backbone, the stipulated distribution loss target of 15.00% will be very difficult to
achieve. The problem has got aggravated with high attrition ratio vis-à-vis pendency of
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 141
recruitment process due to some legal complications. However, it is expected that the
recruitment process will attain its finality with the recent developments.
6.4.3 Despite such adverse scenario, the Petitioner is hopeful of somehow reducing the
distribution loss levels and expects to be able to achieve Distribution Loss level of
17.50%. APDCL has requested the Commission to approve Distribution Loss of
17.50% for FY 2021-22.
Commission’s Analysis
6.4.4 It is observed from the submission of APDCL that there has been massive increase in
LT Jeevan Dhara and Domestic A consumers due to rural electrification. However, on
the other hand, APDCL is making a huge investment towards system strengthening
and system improvement.
6.4.5 Considering the above facts, at the time of finalizing the MYT Order, the Commission
had approved a loss level of 15.00% for FY 2021-22, which is still above the loss level
agreed under the UDAY MoU.
6.4.6 The Commission deems it fit to consider the Distribution Loss at the MYT Order level
of 15.00% considering the investments being undertaken by APDCL. As identified in
the Truing up for FY 2019-20, there is ample scope for improvement in the operational
efficiency of APDCL to achieve the target loss, as there are several Circles with
Distribution Losses significantly higher than the approved loss levels.
Accordingly, the Distribution Loss is approved as 15.00% for FY 2021-22.
6.5 Energy Balance
6.5.1 Based on the revised estimates of the energy sales, projected Distribution Losses and
approved inter-State and intra-State Transmission Losses, APDCL has projected the
revised estimate of the energy requirement for FY 2021-22.
6.5.2 APDCL has projected the Energy Balance for FY 2021-22 as shown below:
Table 78: Energy Balance for FY 2021-22 as Projected by APDCL (MU)
Particulars MYT Order dtd.
01.03.2019 Projected
Energy Sales 8,962 8,366
Distribution Loss (%) 15.00% 17.50%
Energy Requirement at Distribution Periphery 10,543 10,141
Intra-State (AEGCL) Transmission Loss (%) 3.29% 3.29%
Energy input to Transmission System 10,902 10,486
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 142
Particulars MYT Order dtd.
01.03.2019 Projected
Sale of Surplus Power 254 579
Inter-State (PGCIL) Pooled Loss (%) 1.40% 1.40%
Total Energy Requirement 11,311 11,214
Commission’s Analysis
6.5.3 The Commission approves the Energy Balance for FY 2021-22 based on the projected
sales, approved Distribution Loss trajectory, approved Transmission Loss trajectory
for AEGCL, and estimated PGCIL Losses, as shown in the Table below. The sale of
surplus power has been retained at the same level as projected by APDCL.
Table 79: Energy Balance for FY 2021-22 approved by the Commission (MU)
Particulars
MYT Order
dtd.
01.03.2019
APDCL Approved in
this Order
Energy Sales 8,962 8,366 8,037
Distribution Loss (%) 15.00% 17.50% 15.00%
Distribution Loss (MU) 1,582 1,775 1,418
Energy Requirement at Distribution
Periphery T-D
10,543 10,141 9,455
Intra-State Transmission Loss (%) 3.29% 3.29% 3.29%
Intra-State Transmission Loss (MU) 358 345 322
Energy input to Transmission System 10,902 10,486 9,776
Sale of Surplus Power 254 579 579
Inter-State (PGCIL) Pooled Loss (%) 1.40% 1.40% 1.40%
Inter-State (PGCIL) Pooled Loss (MU) 155 149 139
Total Energy Requirement 11,311 11,214 10,494
Therefore, the Commission approves total Power Purchase Requirement of 10,494 MU
for FY 2020-21.
6.6 Power Purchase
6.6.1 APDCL submitted that it is largely dependent on APGCL and Central Generating
Stations to meet the Base Load, however, to meet the Peak demand of the State,
APDCL has tied up with short-term sources like Traders as well as sourced power from
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 143
Power Exchanges to meet the deficit.
6.6.2 APDCL submitted that it has projected the source-wise power purchase for FY 2021-
22 based on the following assumptions:
➢ APGCL: APDCL has firm allocation of power from State Generating Stations
of APGCL. Thermal plants of APGCL include NTPS, LTPS and LRPP. Hydro
plants of APGCL supplying power to APDCL are MeHEP and KLHEP. The
gross energy availability from the existing stations based on the allocated
capacity and the actual PLF, Auxiliary consumptions for these plants. The fixed
as well as variable cost for the State Generating Stations has been considered
as per the latest available information.
➢ Central Generating Stations (NER & ER): The share allocation of the various
plants of CGS (NER and ER) has been considered based on the latest REA.
PLF is considered based on past year actuals vis-à-vis shut down of plants.
Kopili-I, Kopili II, and Khandong Stations of NEEPCO have not been considered
due to their faulty machines. Operational norms are considered as determined
by CERC in respective Tariff Orders. Rate of power purchase from the CGS
has been considered as per the latest available information for the respective
plants.
➢ Other sources: For HHPPCL, PLF and auxiliary consumption has been
considered as per the Commission’s Order dated April 12, 2013. The levelised
tariff as determined for this plant in the Tariff Order dated April 12, 2013 of Rs.
4.11/kWh has been considered.
Generation from NVVNL Solar Bundled (JNNSM) and NVVNL Coal Bundled
(JNNSM) for FY 2021-22 has been considered on the basis of latest available
information.
No purchase from OTPC under merchant power route has been considered, in
view of the expiry of the bilateral PPA.
For Suryapratap Solar, normative parameters of the PLF and auxiliary
consumption as approved by the Commission have been considered. The
purchase rate has been considered as Rs. 8.78/kWh as per the Commission’s
order.
For SECI (Solar) JNNSM, energy charge rate has been considered as per the
terms of the PSA.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 144
Power from Nikachchu HEP (Bhutan) is estimated from 22.04.2021 as per
latest available information and cost is estimated as per the terms of the PSA.
For Mangdechchu (Bhutan), the agreement tariff (including trading margin of 7
paisa) has been considered.
➢ Renewable sources: APDCL has projected to meet the RPO by mix of
purchase from REC purchase and RE sources. REC purchase is kept same as
approved level.
➢ Inter-State and Intra-State Transmission Charges: AEGCL Transmission
Charges and SLDC Charges have been considered same as approved in latest
Tariff Order of AEGCL and SLDC, respectively. PGCIL Charges for FY 2021-
22 have been considered at level projected in APR of FY 2020-21.
6.6.3 The source-wise power purchase quantum and cost projected by APDCL for FY 2021-
22 is shown in the Table below:
Table 80: Power Purchase Quantum and Cost submitted by APDCL for FY 2021-22 (Rs.
Crore)
Sl. No.
Agency/Source
MYT Order dtd. 01.03.2019 APDCL Submission
Total Quantum
(MU)
Total Cost
(Rs Cr)
Rate (Rs/ kWh)
Total Quantum
(MU)
Total Cost
(Rs Cr)
Rate (Rs/ kWh)
1 APGCL 2523.31 769.93 3.05 1317.36 406.91 3.09
2 NEEPCO (HYDRO)
KOPILI I 422.79 49.37 1.17
KOPILI II 51.76 7.09 1.37
KHANDONG 111.29 19.40 1.74
RHEP 548.20 97.82 1.78 626.16 137.44 2.19
DHEP 97.97 50.19 5.12 88.75 48.84 5.50
KAMENG HEP 225.41 109.82 4.87 225.41 91.29 4.05
3 NEEPCO (TH)
AGBPP 788.12 322.01 4.09 884.92 331.73 3.75
AGTPP 176.61 87.99 4.98 376.98 154.21 4.09
AGTPP 2 84.05 14.84 1.77
4 NHPC Existing, Lg HEP 216.58 63.65 2.94 143.69 49.39 3.44
NHPC SUBANSIRI HEP 901.93 227.50 2.52
5 NTPC
FARAKKA 229.30 88.62 3.86 239.05 97.91 4.10
KAHELGAON - I 111.51 63.42 5.69 116.06 42.73 3.68
KAHELGAON -II 469.42 161.04 3.43 433.83 151.00 3.48
TALCHER 151.07 38.20 2.53 150.59 53.48 3.55
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 145
Sl. No.
Agency/Source
MYT Order dtd. 01.03.2019 APDCL Submission
Total Quantum
(MU)
Total Cost
(Rs Cr)
Rate (Rs/ kWh)
Total Quantum
(MU)
Total Cost
(Rs Cr)
Rate (Rs/ kWh)
NTPC (New) BTPS 1530.58 1057.33 6.91 2620.99 1661.95 6.34
NTPC BTPS III 565.87 391.25 6.91
6 MeECL 2.17 1.71 7.88
7 Pare HEP 128.35 59.92 4.67 210.79 103.74 4.92
8 Suryatap Solar 4.19 3.68 8.78 5.47 5.28 9.65
9 JNNSM Bundled Solar power
8.74 10.38 11.88 6.77 9.01 13.31
10 SECI Solar 34.95 24.95 7.14 37.10 23.48 6.33
11 JNNSM Bundled Coal power
35.09 10.80 3.08 46.53 21.31 4.58
13 Power Exchanges 657.98 298.04 4.53
14 OTPC 1388.14 517.52 3.73 1343.03 441.52 3.29
15 HHPCPL (Champawati) 14.66 6.98 4.76 6.55 2.69 4.11
16 Wind Power PTC 87.16 30.77 3.53 98.78 35.83 3.63
17 SECI Wind 87.16 23.71 2.72 129.36 35.71 2.76
18 Mangdechhu 631.40 272.33 4.31
19 PTC Nikachu 139.81 58.05 4.15 471.28 195.67 4.15
20 SPV Assam 174.76 58.11 3.33 218.16 72.69 3.33
Sub-total: 11,310.95 4,426.05 3.91 11,086.99 4,744.18 4.28
22 REC (Solar) 25.39 25.39
23 REC (Non-Solar) 18.44 18.44
24 UI Pool/Deviation Settlement Mechanism
126.91 47.76 3.76
Sub-total: 11,310.95 4,469.88 3.95 11,213.90 4,835.78 4.31
25 AEGCL Transmission Charges
403.65 403.65
26 SLDC Charges 6.40 6.40
27 PGCIL Transmission Charges
592.24 782.70
TOTAL 11,310.95 5,471.43 4.84 11,213.90 6,028.52 5.38
Commission’s Analysis
6.6.4 The Commission has considered the quantum and cost of power purchase from
APGCL in line with the generation and rate approved for APGCL in the Tariff Order of
APGCL dated February 15, 2021 for FY 2021-22.
6.6.5 For all other sources except the following sources, the power purchase quantum and
cost has been taken same as APR of FY 2020-21:
a) The quantum and cost against Kopili-I, Kopili-II, and Khandong is considered as Nil,
because the projects are under shutdown;
b) The quantum of purchase from for Kameng HEP is considered same as proposed
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 146
by APDCL, as this is a new project, and the project was not generating for the ful;
year of FY 2020-21; the rate for purchase from Kameng has been considered same
as the actual rate of purchase in FY 2020-21;
c) JNNSM Bundled Solar projection considered same as APDCL proposal;
d) Power purchase quantum and cost for SPV Assam is considered same as APDCL
proposal;
e) No purchase from OTPC under merchant power route has been considered, in view
of the expiry of the bilateral PPA;
f) Cost and quantum from Mangdechhu and PTC Nikachu are considered in line with
the submissions of APDCL, as these are new stations, that were not present in FY
2020-21;
g) Power purchase through Power Exchanges has been considered to meet the
balance energy requirement, at the same rate as estimated for FY 2020-21
h) Solar and Non-Solar REC’s have been considered to meet the shortfall in RE
purchase vis-à-vis the RPO target specified in the RPO Regulations. The
consideration of RECs is only for the purpose of allowing power purchase cost to
the extent of RPO targets. However, APDCL should take all efforts to procure RE
power to the extent of RPO targets, rather than relying on REC purchase, especially
given the lower rates at which new RE power is presently available.
6.6.6 The Intra-State Transmission Charges and SLDC charges have been considered as
per the tariff approved by the Commission for AEGCL and SLDC, respectively, vide
Tariff Order dated February 15, 2021.
6.6.7 The PGCIL charges have been considered same as the estimated charges for FY
2020-21.
6.6.8 The source-wise power purchase quantum and costs approved by the Commission for
FY 2021-22, is shown in the Table below:
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 147
Table 81: Power Purchase Quantum and Cost approved for FY 2021-22
Sl. Agency/Source
MYT Order dtd. 01.03.2019 APDCL Approved in ARR
Quantum Total Cost Rate Quantum Total Cost Rate Quantum Total Cost Rate
MU Rs. Crore Rs./ kWh
MU Rs. Crore Rs./ kWh
MU Rs. Crore Rs./ kWh
1 APGCL 2523.31 769.93 3.05 1317.36 406.91 3.09 1458.77 385.21 2.64
2 NEEPCO (HYDRO) KOPILI I 422.79 49.37 1.17
KOPILI II 51.76 7.09 1.37 KHANDONG 111.29 19.40 1.74
RHEP 548.20 97.82 1.78 626.16 137.44 2.19 626.16 135.28 2.16 DHEP 97.97 50.19 5.12 88.75 48.84 5.50 88.75 46.77 5.27
3 NEEPCO (HYDRO) New
KAMENG HEP 225.41 109.82 4.87 225.41 91.29 4.05 225.41 90.18 4.00
4 NEEPCO (TH)
AGBPP 788.12 322.01 4.09 884.92 331.73 3.75 884.92 303.58 3.43 AGTPP 176.61 87.99 4.98 376.98 154.21 4.09 376.98 152.76 4.05
AGTPP 2 84.05 14.84 1.77 225.41 91.29 4.05
7 NHPC Existing, Lg HEP
216.58 63.65 2.94 143.69 49.39 3.44 143.69 49.39 3.44
8 NHPC New SUBANSIRI HEP 901.93 227.50 2.52
9 NTPC (Existing) FARAKKA 229.30 88.62 3.86 239.05 97.91 4.10 239.05 92.01 3.85
KAHELGAON - I 111.51 63.42 5.69 116.06 42.73 3.68 116.06 42.41 3.65 KAHELGAON -II 469.42 161.04 3.43 433.83 151.00 3.48 433.83 146.20 3.37
TALCHER 151.07 38.20 2.53 150.59 53.48 3.55 150.59 36.46 2.42
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 148
Sl. Agency/Source
MYT Order dtd. 01.03.2019 APDCL Approved in ARR
Quantum Total Cost Rate Quantum Total Cost Rate Quantum Total Cost Rate
MU Rs. Crore Rs./ kWh
MU Rs. Crore Rs./ kWh
MU Rs. Crore Rs./ kWh
FARAKKA-III
10 NTPC (New) BTPS 1530.58 1057.33 6.91 2620.99 1661.95 6.34 2279.34 1430.61 6.28
NTPC BTPS III 565.87 391.25 6.91
11 Pohmura SHEP
12 MeECL 2.17 1.71 7.88
13 Pare HEP 128.35 59.92 4.67 210.79 103.74 4.92 210.79 105.47 5.00
14 Suryatap Solar 4.19 3.68 8.78 5.47 5.28 9.65 5.47 4.81 8.79
15 IOCL(AOD)
16 JNNSM Bundled Solar power
8.74 10.38 11.88 6.77 9.01 13.31 6.77 9.01 13.31
17 SECI Solar 34.95 24.95 7.14 37.10 23.48 6.33 37.10 23.97 6.46
18 JNNSM Bundled Coal power
35.09 10.80 3.08 46.53 21.31 4.58 46.53 19.95 4.29
19 Bilateral Sources/Traders
20 Power Exchanges 657.98 298.04 4.53 265.96 86.60 3.26
21 OTPC 1388.14 517.52 3.73 1343.03 441.52 3.29 1343.03 456.17 3.40
22 HHPCPL (Champawati)
14.66 6.98 4.76 6.55 2.69 4.11 5.92 2.41 4.07
23 Wind Power PTC 87.16 30.77 3.53 98.78 35.83 3.63 98.78 40.43 4.09
24 SECI Wind 87.16 23.71 2.72 129.36 35.71 2.76 129.36 37.59 2.91
25 Mangdechhu 631.40 272.33 4.31 631.40 272.33 4.31
26 PTC Nikachu 139.81 58.05 4.15 471.28 195.67 4.15 471.28 195.67 4.15
27 SPV Assam 174.76 58.11 3.33 218.16 72.69 3.33 218.16 72.69 3.33
Sub-total: 11,310.95 4,426.05 3.91 11,086.99 4,744.18 4.28 10,494.10 4,237.96 4.04
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 149
Sl. Agency/Source
MYT Order dtd. 01.03.2019 APDCL Approved in ARR
Quantum Total Cost Rate Quantum Total Cost Rate Quantum Total Cost Rate
MU Rs. Crore Rs./ kWh
MU Rs. Crore Rs./ kWh
MU Rs. Crore Rs./ kWh
29 REC (Solar) 25.39 25.39 11.04
30 REC (Non-Solar) 18.44 18.44 16.06
31 UI Pool/DSM 126.91 47.76 3.76 Sub-total: 11,310.95 4,469.88 3.95 11,213.90 4,835.77 4.31 10,494.10 4,265.07 4.06
32 AEGCL Transmission Charges
403.65 403.65 389.09
33 SLDC Charges 6.40 6.40 7.36
34 PGCIL Transmission Charges
592.24 782.70 782.70
TOTAL 11,310.95 5,471.43 4.84 11,213.90 6,028.52 5.38 10,494.10 5,444.22 5.19
Therefore, the Commission approves total Power Purchase Expenses of Rs. 5444.22 Crore for FY 2021-22.
The Average Power Purchase Cost (APPC) for FY 2021-22, applicable for settlement of energy in case of gross/net metering by
Rooftop Solar installations, and settlement of energy charges for REC purchases, shall be Rs. 4.02/kWh.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 150
6.7 Operation and Maintenance (O&M) Expenses
The O&M expenses comprise Employee Expenses, R&M expenses and A&G
expenses.
6.7.1 Employee Expenses
APDCL submitted that the employee expenses have been projected on normative
basis as per MYT Regulations, 2018, based on the following approach:
a) The employee expenses estimated in the APR for FY 2020-21 have been
considered as base expenses for FY 2021-22;
b) CPI inflation has been computed as average increase of CPI index for the period
from FY 2018-19 to FY 2020-21 (up to August 2020), which works out to 5.41%;
c) Growth factor of 3% has been considered to accommodate proposed recruitment
of employees.
The normative employee expenses computed by APDCL for FY 2021-22 is as shown
below:
Table 82: Employee Expenses Projected by APDCL for FY 2021-22 (Rs Crore)
Particulars MYT Order dtd.
01.03.2019 APDCL
Employee Expenses for Previous Year 891.61 771.83
Growth Factor 1% 3%
CPI Inflation 3.77% 5.41%
Employee Expenses 934.52 837.99
Accordingly, APDCL has projected the Employee expenses at Rs.837.99 Crore
for FY 2021-22.
6.7.2 Repair and Maintenance (R&M) Expenses
APDCL submitted that it has proposed R&M expenditure based on the MYT
Regulations, 2018. APDCL has considered the value of ‘K’ as 3.50%, same as
approved in the MYT Order. APDCL has considered WPI of 2.99% (on the basis of
CPI till August 2020). Accordingly, APDCL has projected the R&M Expenses for FY
2021-22, as under:
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 151
Table 83: R&M Expenses Projected by APDCL for FY 2021-22 (Rs Crore)
Particulars MYT Order dtd.
01.03.2019 APDCL
GFA for previous year 5,459.82 7,099.61
Growth Factor 3.50% 3.50%
CPI Inflation 3.00% 2.99%
R & M Expenses 196.84 255.90
Accordingly, APDCL has projected the R&M Expense of Rs. 255.90 Crore for FY
2021-22.
6.7.3 Administrative and General (A&G) Expenses
APDCL submitted that it has proposed A&G expenses based on the MYT Regulations,
2018. APDCL has considered WPI of 2.99% (on the basis of WPI till October 2020).
The provision of Rs 2 Crore is kept same as approved in the MYT Order, while the
Statutory Fees has been considered same as estimated in the APR for FY 2020-21.
Table 84: A&G Expenses Projected by APDCL for FY 2021-22 (Rs. Crore)
Particulars MYT Order dtd.
01.03.2019 APDCL
A&G Expenses for previous year 52.62 48.15
CPI Inflation 3.00% 2.99%
Provision 2.00 2.00
Statutory fees - 1.61
A&G Expenses 56.20 53.19
Accordingly, APDCL has projected the A&G expenses of Rs. 53.19 Crore for FY
2021-22.
Commission’s Analysis
6.7.4 The Commission has computed the O&M Expenses for FY 2021-22 on normative basis
as per the MYT Regulations, 2018. Any variation between normative O&M expenses
and actual O&M Expenses shall be considered under sharing of gains and losses on
account of controllable items as per the MYT Regulations, 2018 at the time of truing
up for respective year.
6.7.5 For computation of employee expenses for FY 2021-22, the Commission has adopted
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 152
the following approach:
a) The employee expenses computed in the APR of FY 2020-21 have been
considered as base expenses;
b) CPI inflation has been computed as average increase of CPI index for the
period from FY 2017-18 to FY 2019-20, which works out to 5.35%;
c) Growth factor is considered at 0%, in view of the steep decline in the
number of employees..
6.7.6 The normative employee expenses approved for FY 2021-22 is shown in the following
Table:
Table 85: Employee Expenses Approved for FY 2021-22 (Rs. Crore)
Particulars MYT Order dtd.
01.03.2019 APDCL
Approved in ARR
Employee Expenses for Previous Year
891.61 771.83 772.24
Growth Factor 1% 3% 0%
CPI Inflation 3.77% 5.41% 5.35%
Employee Expenses 934.52 837.99 813.58
Therefore, the Commission approves Employee Expenses of Rs. 813.58 Crore,
for FY 2021-22.
6.7.7 For computation of R&M Expenses for FY 2021-22, the Commission has considered
the following approach:
a) Average GFA of previous year has been considered as approved in APR of FY
2020-21;
b) WPI inflation has been computed as average increase of WPI index for period from
FY 2017-18 to FY 2019-20, which works out to 2.96%;
c) K-factor of 3.50% has been considered as approved in the MYT Order.
6.7.8 The normative R&M expenses approved for FY 2021-22 is shown in the following
Table:
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 153
Table 86: R&M Expenses Approved for FY 2021-22 (Rs. Crore)
Particulars MYT Order dtd.
01.03.2019 APDCL
Approved in ARR
Average GFA for previous year 5,459.82 7,099.61 5,844.70
K Factor 3.50% 3.50% 3.50%
WPI Inflation 3.00% 2.99% 2.96%
R&M Expenses 196.84 255.90 210.62
Therefore, the Commission approves R&M Expenses of Rs. 210.62 crore for
FY 2021-22.
6.7.9 For computation of A&G expenses for FY 2021-22, the Commission has adopted the
following approach:
a) The A&G expenses approved in APR of FY 2020-21 have been considered as
base expenses;
b) WPI inflation has been computed as average increase of WPI index for period from
FY 2017-18 to FY 2019-20, which works out to 2.96%
c) As approved in MYT Order, the Commission has considered total provision of Rs.
2 Crore comprising Rs. 1 crore for consumer awareness initiatives and Rs. 1 crore
for capacity building of APDCL employees. As additional provision has been made
for these special initiatives, APDCL shall submit segregated details to the
Commission at the time of true-up;
d) The statutory fees of Rs. 1.61 crore estimated in the APR for FY 2020-21 have
been considered as a separate pass-through item, and added to the normative
A&G expenses computed for FY 2021-22 as above.
6.7.10 The approved A&G expenses for FY 2021-22 are shown in the following Table:
Table 87: A&G Expenses Approved for FY 2021-22 (Rs. Crore)
Particulars MYT Order dtd.
01.03.2019 APDCL
Approved in ARR
A&G Expenses for Previous Year 52.62 48.15 40.75
WPI Inflation 3.00% 2.99% 2.96%
Provision 2.00 2.00 2.00
Statutory Fees 1.61 1.61
A&G Expenses 56.20 53.19 45.56
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 154
Therefore, the Commission approves A&G Expenses of Rs. 45.56 Crore for FY
2021-22.
6.8 Capital Expenditure and Capitalisation
6.8.1 The Commission had approved capital expenditure and capitalization of Rs. 1000
Crore and Rs. 650 Crore, respectively, for FY 2021-22, in the MYT Order dated March
01, 2019.
6.8.2 APDCL submitted that the Capital Expenditure and Capitalisation for FY 2021-22 has
been computed based on the works carried out till date vis-à-vis pending CWIP.
Accordingly, APDCL has projected the capital expenditure and capitalisation for FY
2021-22 as Rs. 503.97 Crore and Rs. 2321.80 Crore, respectively.
6.8.3 APDCL has proposed the financing of the said capitalisation as under:
Table 88: Financing of the Projected Capitalisation for FY 2021-22 (Rs Crore)
Source Amount (Rs. Crore)
Debt 232.18
Equity -
Grant 2089.62
Total 2321.80
Commission’s Analysis
6.8.4 APDCL has proposed huge capitalization of Rs.2321.80 Crore as against the approved
capitalization of Rs. 650 Crore.
6.8.5 It is observed that APDCL has been projecting huge capitalization at the time of ARR
and achieving much lower capitalization. The Commission has therefore, considered
capitalization for FY 2021-22 in line with the capitalization estimated in the APR FY
2020-21, which is based on recent past trends and considers the impact of COVID.
6.8.6 The Commission hence, approves the capitalization of Rs.1320.96 Crore for FY 2021-
22. The Commission has considered funding of the Capitalization through Grant and
Debt in the ratio of 90:10, as per typical funding pattern, and as proposed by APDCL
in its Petition. The following Table shows the approved capitalization and its funding
considered for FY 2021-22.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 155
Table 89: Capitalisation and proposed funding approved for FY 2021-22 (Rs Crore)
Source MYT Order dtd.
01.03.2019 APDCL Approved in ARR
Debt 65.00 232.18 132.10
Equity - - -
Grant 585.00 2,089.62 1,188.86
Total
Capitalization 650.00 2,321.80 1,320.96
6.9 Depreciation
6.9.1 The Commission had approved depreciation of Rs. 23.73 Crore for FY 2021-22 in the
MYT Order dated March 01, 2019.
6.9.2 Depreciation on subsequent assets is claimed after apportionment of available grant.
As no depreciation has been charged on assets created out of RGGVY, MNRE as well
as consumer contribution, grant received against such schemes is shown separately
with no claim of depreciation. The total depreciation claimed is Rs. 62.53 Crore after
adjustment of funding from grant of Rs. 94.85 Crore.
6.9.3 Depreciation has been claimed in accordance with the MYT Regulations, 2018, after
apportionment of depreciation for assets created out of consumer contribution. Assets
which have been fully depreciated have been excluded from the asset base for the
purpose of calculating depreciation. Rates of depreciation as notified in the addendum
to MYT Regulations, 2018 have been considered.
6.9.4 The depreciation proposed by APDCL for FY 2021-22 is shown in the Tables below:
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 156
Table 90: Depreciation calculation of FY 2021-22 as submitted by APDCL (Rs. Crore)
Particulars
Gross Fixed Assets Depreciation
As on 01.04.2021
Asset Addition
Rate of Dep
Assets fully depreciated
On OB On Addition Total
Land & Rights
i) Land owned under full title
18.9 0.85 - - -
ii) Leasehold land 5.83 16.09 3.34% 0.18 0.24 0.42
Sub total: 24.72 16.94 - 0.18 0.24 0.42
Building 58.08 6 3.34% 7.32 1.53 0.09 1.62
Hydraulic - - - - -
Other Civil Works 60.56 10.46 3.34% 5.91 1.64 0.16 1.8
Plant & Machinery 807.46 452.22 5.28% 213.74 28.21 10.74 38.96
Lines & Cable Network 1,651.18 1,802.93 5.28% 442.45 57.44 42.84 100.28
Vehicles 27.75 2.7 5.28% 11.34 0.78 0.06 0.84
Furniture & Fixtures 18.86 3.44 6.33% 9.98 0.51 0.1 0.6
Office Equipment 40.61 26.97 6.33% 23.57 0.97 0.77 1.74
SUB TOTAL 2,689.23 2,321.66 5.44% 714.31 91.25 55 146.25
Add: Consumers contribution
233.94 0.13 5.28% 11.12 0 11.12
Add: Assets not belonging to the entity
5,497.39 - - -
Total 8,420.56 2,321.79 714.31 102.37 55 157.37
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 157
Table 91: Depreciation claimed by APDCL for FY 2021-22 (Rs. Crore)
Particulars State Govt. grant
Grant for
assets not
belonging to entity
(RGGVY, MNRE
etc.)
Consumer
Contribution Total
As on 01.04.2005 As on 01.04.2021 Sub total As on 01.04.2021
Grants Available - 4,692.35 4,692.35 6,251.95 233.94 11,178.23
GFA (excluding Consumer
Contribution and assets not
belonging to company)
765.43 1,923.80 2,689.23
5,497.39
233.94 8,420.56
CWIP 330.20 3,252.45 3,582.65 2,211.33 5,793.98
Total 1,095.63 5,176.26 6,271.89 7,708.72 233.94 14,214.54
Cumulative grants apportioned
in the ratio of GFA and CWIP
GFA - 1,743.96 1,743.96 4,458.51 233.94 6,436.40
CWIP - 2,948.39 2,948.39 1,793.44 4,741.83
Total - 4,692.35 4,692.35 6,251.95 233.94 11,178.23
Depreciation calculated as per
the Regulation on the GFA
41.63 104.63 146.25 -
11.12 157.37
Weighted Average Rate of
Depreciation (%)
5.44% 5.44% 5.44% -
4.75% 1.87%
Depreciation to be deducted
on the assets built on the
grants component value
- 94.85 94.85
-
94.85
Depreciation claimed 41.63 9.78 51.41 - 11.12 62.53
After adjustment of grant component, APDCL has claimed Depreciation of Rs 62.53 Crore for FY 2021-22.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 158
Commission’s Analysis
6.9.5 For computation of depreciation, the Commission has considered the closing GFA for
FY 2020-21 as approved in the APR for FY 2020-21, as the Opening GFA for FY 2021-
22. The Capitalisation approved in the above section of this Order has been considered
as asset addition during FY 2021-22. The Commission has considered the scheduled
depreciation rates as specified in MYT Regulations, 2018.
6.9.6 As per the Regulation 32 of the MYT Regulations, 2018, the total depreciation during
the life of the asset shall not exceed 90% of the original cost of GFA. The Commission
has computed the depreciation separately for assets added under each asset head in
each year. The Commission has disallowed the depreciation on assets where
depreciation is in excess of 90% of the original cost of asset under different asset
heads.
6.9.7 The Commission has not considered depreciation on assets funded through grants in
accordance with Regulation 32 of the MYT Regulations, 2018.
6.9.8 In view of the above, the Commission has approved depreciation for FY 2021-22
as per MYT Regulations, 2018, as given in the Table below:
Table 92: Depreciation approved for FY 2021-22 (Rs. Crore)
SL Particulars Opening
GFA
Addition
during the
year
Rate of
depreciation
Depreciation
Approved
1 Land & Rights 19.09 0.34 0.00% -
2 Leasehold Land 2.84 - 3.34% 0.09
3 Building 59.33 2.37 3.34% 2.02
4 Plant & Machinery 735.89 12.27 5.28% 27.86
5 Vehicle 27.24 - 5.28% 1.46
6 Furniture & Fixtures 19.66 1.43 6.33% 0.69
7 Office Equipment 46.52 10.91 6.33% 2.80
8 Other Civil Work 62.76 4.14 3.34% 2.17
9 Lines & Cable Network 1,417.55 100.64 5.28% 56.10
10 Total 2,390.88 132.10 93.19
11 Opening GFA excluding land 7,076.45
12 Closing GFA excluding land 8,387.76
13 Average Grant towards GFA 6,350.43
14 Less: Depreciation for Grants 76.54
15 Net Depreciation Allowed 16.65
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 159
Therefore, the Commission approves Depreciation of Rs. 16.65 Crore for FY 2021-22.
6.10 Interest & Finance Charges
6.10.1 APDCL submitted that it has projected interest on loan capital based on the existing
source-wise loans outstanding, repayment schedule and prevailing interest rates.
Presently, APDCL has loans from Government of Assam and PFC. In order to reduce
the interest burden and to achieve financial turnaround, APDCL has joined UDAY
scheme, which has materialized in FY 2020-21.
6.10.2 APDCL has claimed interest and finance charges in line with the approach followed in
Tariff Orders. APDCL has projected 5% increase in Bank Charges, and 15% increase
in Billdesk Charges over FY 2020-21 estimates, considering that more consumers are
availing digital payment platforms.
6.10.3 Accordingly, APDCL has projected Interest Expenses for FY 2021-22 as shown in the
Table below:
Table 93: Interest on Loan Capital as submitted by APDCL (Rs. Crore)
Particulars MYT Order dtd.
01.03.2019 APDCL
Interest on Loan capital 15.29 123.62
Bank Charges - 2.95
Billdesk Charges for Collecting Revenue - 3.34
Total 15.29 129.91
Accordingly, APDCL projected Interest Expenses of Rs. 129.91 Crore for FY 2021-22.
Commission’s Analysis
6.10.4 The Commission notes that Interest on loan capital for FY 2021-22 is required to be
allowed on normative basis as per Regulation 34 of MYT Regulations, 2018.
6.10.5 For computation of Interest on Loan, the Commission has considered the closing loan
balance of FY 2020-21, as approved in the APR of FY 2020-21, as the opening balance
for FY 2021-22. The addition to loan has been considered based on the funding of
capitalisation in FY 2021-22, as elaborated earlier. The Loan repayment is considered
equal to the Depreciation allowed for FY 2021-22. The Commission has considered
interest rate of 10.00% for computing normative interest for FY 2021-22, in accordance
with the terms of UDAY MoU.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 160
6.10.6 The Commission has considered 5% increase in Bank Charges and Billdesk Charges
over FY 2020-21 estimates.
6.10.7 Accordingly, the Interest Expenses approved by the Commission for FY 2021-22 is
shown in the following Table:
Table 94: Approved Interest Expenses for FY 2021-22 (Rs. Crore)
Particulars MYT Order dtd.
01.03.2019 APDCL
Approved
in ARR
Net Normative Opening Loan 142.06 981.54 128.08
Addition of normative loan during the
year
65.00 232.18 132.10
Normative Repayment during the year 23.73 62.53 16.65
Net Normative Closing Loan 183.33 1151.19 243.52
Interest Rate 9.40% 10.74% 10.00%
Interest Expenses 15.29 123.62 18.58
Interest & Financing Charges 2.95 2.95
Billdesk Charges for collecting Revenue 3.33 2.78
Total Interest & Financing Charges 15.29 129.91 24.31
Therefore, the Commission approves Interest Expenses of Rs. 24.31 Crore for
FY 2021-22.
6.11 Interest on Working Capital
6.11.1 APDCL submitted that it has computed the IoWC as per MYT Regulations, 2018, as
shown in the Table below:
Table 95: Interest on Working Capital submitted by APDCL (Rs Crore)
Particulars MYT Order dtd.
01.03.2019 APDCL
O&M Expenses-One month 98.96 95.59
2-month Receivables 178.13 969.35
Maintenance spares @ 15% of O&M Expenses 1030.25 172.06
Less: One-month Power Purchase Cost 455.95 477.54
Less: Consumer Security Deposit 830.96 759.96
Total Working Capital 20.43 (0.50)
Rate of Interest on Working Capital 11.50% 10.00%
Interest on Working Capital 2.35 0.00
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 161
As the normative working capital requirement works out to be zero, no IoWC has been claimed
by APDCL.
Commission’s Analysis
6.11.2 The Commission has computed IoWC in accordance with Regulation 36 of the MYT
Regulations, 2018. The rate of Interest has been considered equal to SBI MCLR Rate
(one-year tenor) prevailing for last available 6 months plus 300 basis points, i.e.,
10.00%. In line with the approach adopted in true-up for FY 2019-20 and APR for FY
2020-21, the Commission has excluded the power purchase cost towards purchase
through Power Exchanges, while computing the normative working capital
requirement.
6.11.3 The IoWC approved by the Commission for FY 2021-22 is shown in the Table below:
Table 96: IoWC approved by the Commission for FY 2021-22 (Rs. Crore)
Particulars MYT Order
dtd.
01.03.2019
APDCL Approved
O&M Expenses for One Month 98.96 95.59 89.15
Maintenance spares @ 15% of O&M
Expenses 178.13 172.06 160.46
Two months equivalent of expected
revenue from sale of electricity 1030.25 969.35 1011.50
Less: 1 month of Power Purchase Cost 455.95 477.54 446.47
Less: Amount held as Consumer Security
Deposit 830.96 759.96 763.51
Total Working Capital Required 20.43 (0.50) 51.13
Interest rate 11.50% 10.00% 10.00%
Interest on Working Capital 2.35 - 5.11
Therefore, the Commission approves IoWC of Rs. 5.11 Crore for FY 2021-22.
6.12 Interest on Consumers’ Security Deposit
6.12.1 APDCL submitted that with successful roll out of software facilitating automatic
adjustment of interest on security deposit in energy bills, the liquidation of liability on
such account has significantly increased.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 162
6.12.2 Considering the improving trend of liquidation of interest on security deposit, APDCL
has projected interest on CSD as Rs. 38.06 Crore, based on the actuals for FY 2019-
20.
Commission’s Analysis
6.12.3 The Commission has considered the submission of APDCL, and therefore, approves
interest on CSD of Rs. 38.06 Crore in the ARR of FY 2021-22.
6.13 Provision for Bad & Doubtful Debts
6.13.1 APDCL has requested to allow the Provision for Bad & Doubtful Debts equal to the
actual Provision for FY 2019-20, at Rs. 22.10 Crore, for FY 2021-22.
Commission’s Analysis
6.13.2 The Commission has considered the Provision for Bad & Doubtful Debts for FY 2021-
22 as approved in the APR of FY 2020-21. Accordingly, the Commission allows the
Provision for Bad & Doubtful Debts for FY 2021-22 as Rs. 22.10 Crore.
6.14 Return on Equity
6.14.1 APDCL submitted that with conversion of loan and grants to equity in FY 2020-21,
equity capital at the beginning of FY 2021-22 is expected to be Rs. 1795.83 Crore.
Accordingly, the RoE @16.00% on Rs.1795.83 Crore has been claimed against
approved RoE of Rs. 26.04 Crore for FY 2021-22.
Commission’s Analysis
6.14.2 The Commission has approved the RoE in accordance with Regulation 33 of the MYT
Regulations, 2018. The closing equity approved in the APR for FY 2020-21 has been
considered as the opening equity of FY 2021-22. The Commission has considered the
addition of equity as Nil during FY 2021-22, based on the funding of capitalisation
approved in this Order. Therefore, the approved RoE for FY 2021-22 at 16% is shown
in the Table below:
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 163
Table 97: Return on Equity approved by the Commission (Rs. Crore)
Therefore, the Commission approves RoE of Rs.75.91 Crore for FY 2021-22.
The additional ROE allowed in this Order, on account of conversion of Grant to
equity, as elaborated in the APR of FY 2020-21, may be considered for transfer
to the Pension Fund. In this regard, the minutes of meeting of PIB circulated vide
letter no P.E/77/2015/234 dated 25th September, 2018 may be referred.
6.15 Non-Tariff Income
6.15.1 APDCL submitted that it has projected Non-Tariff Income (NTI) considering escalation
of 5% over the Non-Tariff Income estimated for FY 2020-21, except for STOA Credit
on PoC bill, income from reactive power as well as SCED, considering the uncertain
nature of this income.
6.15.2 The following Table shows the Non-Tariff Income projected by APDCL for FY 2021-
22:
Table 98: Non-Tariff Income Projected by APDCL (Rs. Crore)
Particulars MYT Order dtd.
01.03.2019 APDCL
Meter Rent 25.88 24.33
Compensation charges for theft of
energy/malpractices 0.90 0.42
Cross Subsidy surcharge on Open Access
Consumer 30.29 37.25
Wheeling Charges collected 4.76 4.78
Short-term Open Access Credit 60.06
Rebate on PP bills 26.75
Miscellaneous Recoveries 26.28 23.63
Other Miscellaneous and General Charges
Sr.
No. Particulars
MYT Order dtd.
01.03.2019 APDCL Approved
1 Opening Equity Capital 162.77 1795.77 474.41
2 Equity addition during the year - - -
3 Closing Equity 162.77 1,795.77 474.41
5 Rate of Return on equity 16.00% 16.00% 16.00%
6 Return on Equity 26.04 287.32 75.91
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 164
Particulars MYT Order dtd.
01.03.2019 APDCL
a) Delayed payment charges 195.35 226.97
b) Income on Reactive Power 0.21
c) Income from SCED 5.36
Grand Total 283.46 409.76
Accordingly, APDCL projected NTI of Rs. 409.76 Crore for FY 2021-22.
Commission’s Analysis
6.15.3 The Commission has considered a 5% increase in most of the sub-heads of NTI, as
submitted by APDCL, for projecting Non-Tariff Income for FY 2021-22. In line with the
approach elaborated in the true-up for FY 2019-20 and APR for FY 2021-22, the
Rebate earned by APDCL due to prompt payment of power purchase has not been
considered as NTI. The following Table shows the Non-Tariff Income approved by the
Commission for FY 2021-22:
Table 99: Non-Tariff Income approved by the Commission for FY 2021-22 (Rs. Crore)
Particulars MYT Order dtd.
01.03.2019 APDCL
Approved
Meter Rent 25.88 24.33 24.33
Compensation charges for theft of
energy/malpractices
0.90 0.42 0.42
Cross Subsidy surcharge on Open Access
Consumer
30.29 37.25 37.25
Wheeling Charges collected 4.76 4.77 4.77
Short-term Open Access Credit 60.06 60.06
Rebate on PP bills 26.75 -
Miscellaneous Recoveries 26.28 23.64 23.64
Other Miscellaneous and General Charges -
a) Delayed payment charges 195.35 226.97 239.57
b) Income on Reactive Power 0.21 0.21
c) Income from SCED 5.36 5.36
Grand Total 283.46 409.76 395.62
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 165
Therefore, the Commission approves Non-Tariff Income as Rs. 395.62 Crore for
FY 2021-22.
6.16 Other Income
6.16.1 APDCL submitted that all heads of ‘Other Income’ are estimated on the basis of actuals
for FY 2019-20 (True up) except for the following:
• Miscellaneous receipt is escalated by 5%.
• Revenue from Sale of Surplus Power is based on surplus energy estimate for
FY 2021-22 at IEX price of Rs. 2.35 per unit (off-peak/night hours)
• With high attrition ratio, receipt from pension trust is considered with 3%
decline.
6.16.2 Accordingly, Other Income projected by APDCL for FY 2021-22 is shown in the Table
below:
Table 100: Other Income as submitted by APDCL (Rs. Crore)
Particulars MYT Order dtd.
01.03.2019 APDCL
Interest on fixed deposits - 94.09
Income from Trading - 135.97
Income from Sale of Scrap - 0.23
Revenue from sale of LED's, Tubelight, Fan, etc. - 0.92
Rent from residential buildings - 0.02
Receipt from Pension Trust - 63.14
Miscellaneous receipts - 47.04
Total 291.61 341.40
Commission’s Analysis
6.16.3 The Commission has considered annual increase of 5% over the Other Income
approved in APR of FY 2020-21.
6.16.4 In case of Revenue from Sale of Surplus Power, the Commission has considered the
same on the basis of surplus energy arrived from the Energy Balance approved by the
Commission in this Order for FY 2021-22. The rate of Rs. 2.52 per kWh, which is the
actual rate achieved from surplus sale of power during FY 2019-20, has been
considered on the surplus energy available for sale.
6.16.5 The following Table shows the Other Income considered by the Commission for FY
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 166
2021-22:
Table 101: Other Income as approved by the Commission for FY 2021-22 (Rs. Crore)
Particulars
MYT
Order dtd.
01.03.2019
APDCL Approved in
ARR
Interest on fixed deposits - 94.09 94.09
Income from Trading 135.97 148.23
Income from Sale of Scrap 0.23 0.23
Revenue from sale of LED's, Tubelight,
Fan, etc. 0.92 0.11
Rent from residential buildings 0.02 0.02
Receipt from Pension Trust 63.14 67.10
Miscellaneous receipts 47.04 47.04
Total 291.61 341.40 356.82
Accordingly, the Commission approves Rs. 356.82 Crore as Other Income for FY
2021-22.
6.17 Revenue from sale of Power at Existing Tariff
6.17.1 APDCL has submitted that the Revenue from sale of electricity at existing tariff has
been computed based on the approved tariff as per MYT Order dated 07.03.2020 and
the category-wise sales projected by APDCL for FY 2021-22.
6.17.2 APDCL has considered full cost tariff, without considering any targeted subsidy, for the
purposes of estimating the revenue from sale of electricity at existing tariff. APDCL has
projected the revenue from existing tariff for FY 2021-22 as Rs. 6157.48 Crore.
Commission’s Analysis
6.17.3 The Commission has estimated the Revenue from sale of electricity at existing tariff
based on the approved tariff for FY 2020-21 and the approved category-wise sales for
FY 2021-22. The Revenue from Sale of Electricity from existing tariff for FY 2021-
22 as computed by the Commission works out to Rs. 5,792.64 crore.
6.18 ARR for FY 2021-22
6.18.1 Based on the component-wise approval of various expenses heads and revenue
heads, the summary of ARR as submitted by APDCL and as approved by the
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 167
Commission for FY 2021-22, is given in the Table below:
Table 102: ARR of APDCL for FY 2021-22 as approved by the Commission (Rs. Crore)
Sl.
No.
Particulars MYT Order dtd.
01.03.2019 APDCL Approved
1 Power Purchase Expenses 5,471.43 6,028.52 5,444.22
2 O&M Expenses 1,187.56 1,147.09 1,069.76
a) Employee Expenses 934.52 837.99 813.58
b) R&M Expenses 196.84 255.90 210.62
c) A&G Expenses 56.20 53.19 45.56
3 Depreciation 23.73 62.53 16.65
4 Interest and Finance Charges 15.29 129.91 24.31
5 Interest on Working Capital 2.35 - 5.11
6 Interest on CSD 17.79 38.06 38.06
7 Return on Equity 26.04 287.33 75.91
8 Provisioning for Bad & Doubtful Debts 12.35 22.10 22.10
9 Total Expenditure 6,756.55 7,715.55 6,696.12
10 Less: Non-Tariff Income 283.46 409.75 395.62
11 Less: Other Income 291.61 341.40 356.82
12 Aggregate Revenue Requirement 6,181.47 6,964.35 5,943.69
Accordingly, the Commission approves the ARR of Rs. 5943.69 Crore for FY
2021-22.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 168
7 Cumulative Revenue Gap till FY 2021-22 and Tariff
for FY 2021-22
7.1 Cumulative Revenue Gap
7.1.1 APDCL submitted the total Revenue Gap of Rs. 250.14 Crore for FY 2019-20 including
carrying cost till FY 2021-22. The Cumulative Revenue Gap projected by APDCL for
FY 2021-22 is given in the Table below:
Table 103: Cumulative Revenue Gap till FY 2021-22 as submitted by APDCL (Rs. Crore)
Particulars Rate of
Interest Amount
Revenue Gap after true-up for FY 2019-20 205.57
Carrying/(Holding) cost for FY 2019-20 (half Year) 11.54% 11.86
Carrying/(Holding) cost for FY 2020-21 (full Year) 10.91% 22.42
Carrying/(Holding) cost for FY 2021-22 (half Year) 10.00% 10.28
Total carrying cost 44.57
Total Revenue Gap for FY 2019-20 250.14
Revenue Gap for FY 2021-22 1159.33*
Cumulative Revenue Gap for FY 2021-22 1409.47
Note: * Revised by APDCL to Rs. 806.92 Crore vide reply dated 05.01.2021; revised
Cumulative Revenue Gap works out to Rs. 1057.06
7.1.2 APDCL submitted that the Cumulative Revenue Gap/(Surplus) to be adjusted in the
tariff for FY 2021-22 works out to Rs.1409.47 Crore.
7.1.3 APDCL submitted the ARR for FY 2021-22 as Rs.7214.54 Crore, as shown in the
Table below:
Table 104: ARR for FY 2021-22 as submitted by APDCL (Rs. Crore)
Particulars Amount
A. Standalone ARR for FY 2021-22 6964.40
B. Truing Up for FY 2019-20
a) Principal Amount of Revenue Gap 205.57
b) Carrying cost on the Revenue Gap 44.57
Sub-total (B) 250.14
Grand total (A+B) 7214.54
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 169
7.1.4 APDCL submitted that revenue from existing tariff for FY 2021-22 is assessed at Rs.
6157.48 Crore.
7.1.5 APDCL submitted that the Average Cost of Supply (ACoS) to recover the entire ARR
of Rs. 7214.54 Crore on projected retail sales of 8366.14 MU during FY 2021-22, will
be Rs. 8.62/kWh. APDCL submitted that recovery of entire amount of Rs. 7214.54
Crore in FY 2021-22 will lead to average increase in existing retail tariff by 10% over
the approved ACoS of Rs. 7.87/kWh for FY 2020-21 (without Government subsidy). At
the same time, delayed recovery of dues will have adverse effect on APDCL’s ability
to discharge its obligations.
7.1.6 APDCL submitted that it has received Rs. 69.99 Crore as rebate from CPSU Gencos
pursuant to Ministry of Power, Govt. of India’s advisory during May, 2020 to provide
some respite to the Discom’s retail consumers on account of COVID-19 pandemic.
Further, with enhancement of equity pursuant to conversion of loan/grant with
enhanced Authorised share capital vis-à-vis massive asset addition, the RoE for FY
2021-22 is estimated at Rs. 287.33 Crore against prevailing Rs. 26.04 Crore.
7.1.7 APDCL submitted that being sensitive to its valued consumers and the global crisis
faced by every segment of consumers, APDCL is proposing to recover only Rs.
6883.26 Crore by passing the benefit of Rebate from CPSU Gencos for COVID during
FY 2020-21 and keeping the claim on additional RoE in abeyance for truing up as
shown in the Table below:
Table 105: ARR for FY 2021-22 as submitted by APDCL (Rs. Crore)
Particulars Amount
a. Standalone ARR for FY 2021-22 6964.40
a1. Additional RoE on enhanced equity 261.29
A. Net Amount without Additional RoE (a – a1) 6703.11
B. Truing Up for FY 2019-20
a) Principal Amount of Revenue Gap 205.57
b) Carrying cost on the Revenue Gap 44.57
Sub-total (B) 250.14
C. Rebate from CPSU Gencos for COVID during FY 2020-21 69.99
Grand total (A+B-C) 6883.26
7.1.8 APDCL craved leave to consider passing of Rebate from CPSU Gencos for COVID
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 170
during FY 2020-21 and actual RoE for FY 2021-22 at the time of Truing Up for
respective years.
7.1.9 APDCL submitted that recovery of the reduced amount of Rs. 6883.26 Crore will lead
to only 5% average increase over approved ACoS.
Commission’s Analysis
7.1.10 The Commission has approved the Revenue Gap of Rs. 186.09 Crore after Truing-up
of FY 2019-20, as against Rs. 205.57 Crore submitted by APDCL.
7.1.11 The Commission has also considered the Revenue Gap/(Surplus)approved for
APGCL and AEGCL in their respective True-up Order for FY 2019-20, along with
carrying cost, by directly passing through the same in the Cumulative Revenue
Gap/(Surplus) of APDCL till FY 2021-22.
7.1.12 The Cumulative Revenue Gap/(Surplus) approved by the Commission till FY 2021-22,
is shown in the Table below:
Table 106: Cumulative Revenue Gap/(Surplus) till FY 2021-22 as approved by the
Commission (Rs. Crore)
Sr.
No. Particulars
Rate of
Interest (%) Amount
1
Revenue Gap/(Surplus) after Truing up of FY 2019-20 186.09
Carrying Cost for FY 2019-20 (Half Year) 11.14% 10.37
Carrying Cost for FY 2020-21 (Full Year) 10.00% 18.61
Carrying Cost for FY 2021-22 (Half Year) 10.00% 9.30
Total Revenue Gap/(Surplus) for FY 2019-20 (A) 224.37
2 Revenue Requirement for FY 2021-22 (B) 5,943.69
3 Impact of True-up of FY 2019-20 for APGCL along
with holding cost (C) (63.26)
4 Impact of True-up of FY 2019-20 for AEGCL along
with holding cost (D) (36.87)
5 Impact of True-up of FY 2019-20 for SLDC along with
holding cost (E) 1.07
7 Cumulative Revenue Requirement for FY 2021-22 (F)
= (A + B + C + D + E) 6,068.99
8 Revenue from Existing Tariff in FY 2021-22 (G)* 6,192.64
9 Cumulative Revenue Gap/(Surplus) till FY 2021-22
(H) = (F) – (G) (123.65)
Note: * Including Rs. 400 Crore of GoA Subsidy against power purchase
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 171
7.1.13 Thus, the Cumulative Revenue Surplus after passing through all the past Revenue
Gaps/(Surplus) after truing up for FY 2019-20 for APGCL, AEGCL and APDCL along
with carrying cost works out to Rs. 123.65 crore, which translates to an average tariff
reduction of 2% or ~15.0 paise/kWh for all categories, as a whole.
7.1.14 Accordingly, the Commission has rationalised the category-wise tariffs in order to
adjust the Revenue Surplus of Rs. 123.65 Crore as well as further reduce the cross-
subsidy between consumer categories, as elaborated in subsequent sections of this
Order.
7.2 Tariff Philosophy and Design for FY 2021-22
7.2.1 APDCL submitted that it has been guided by the provisions of the EA 2003, National
Electricity Policy (NEP), Tariff Policy and the MYT Regulations, 2018, while proposing
retail supply tariff for FY 2021-22.
7.2.2 APDCL submitted that it has tried to rationalise the tariff as well as further reduce the
cross-subsidy between the consumer categories while proposing tariffs for the various
consumer categories for FY 2021-22.
7.2.3 APDCL has worked out the ACoS for FY 2021-22 as Rs. 8.23/kWh based on the
proposed ARR and sales, as shown in the Table below. APDCL stated that 88% of the
cost is contributed by Power Purchase cost.
Table 107: ACoS Projected by APDCL for FY 2021-22
Sr. No.
Particulars Units Amount
1 Proposed ARR for FY 2021-22 Rs. Crore 6,883.26
2 Projected Sales for FY 2021-22 MU 8,366.14
3 Average Cost of Supply (ACoS) Rs/kWh 8.23
7.2.4 APDCL submitted that historically the consumer profile of Assam is heavily loaded with
Domestic consumers, which got further aggravated with successful implementation of
SAUBHAGYA. Such adverse consumer mix has already resulted in significantly higher
tariff for a microscopic group of industrial/ commercial consumers, which is creating
hurdle in industrialization in the State of Assam.
7.2.5 APDCL submitted that Govt. of Assam is providing targeted subsidies for a few
categories. In the absence of any written commitment from Govt. of Assam for
continuance of the same in FY 2021-22, APDCL has proposed full-cost recovery tariff
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 172
for FY 2021-22. In the event that the Govt. of Assam continues with the category-wise
tariff subsidy for FY 2021-22, the same would be adjusted in the retail tariffs being
charged to the respective consumer categories.
Commission’s Analysis
7.2.6 In determining the ARR and the retail supply tariff of APDCL for
FY 2021-22, the Commission has been guided by the provisions of the EA 2003,
National Electricity Policy (NEP), Tariff Policy, and the MYT Regulations, 2018.
7.2.7 Section 61 of the EA 2003 lays down the broad principles and guidelines for
determination of retail supply tariffs. The basic principle is to ensure that tariff should
progressively reflect the cost of supply of electricity and gradually reduce the cross-
subsidies between categories. The EA 2003 lays down special emphasis on
safeguarding of consumers’ interest and also requires that the costs should be
recovered in a reasonable manner. The EA 2003 mandates that tariff determination
should be guided by factors which “encourage competition, efficiency, economical
uses of resources, good performance and optimum investment”.
7.2.8 The EA 2003 provides that while determining the tariff, the Commission shall not show
undue preference to any consumer of electricity but may differentiate according to the
consumer's load factor, power factor, voltage, total consumption of electricity during
any specified period or the time at which the supply is required or the geographical
position of any area, the nature of supply and the purpose for which the supply is
required. The Tariff Policy notified by the Government of India provides comprehensive
guidelines for determination of tariff and determination of ARR of power utilities. The
Commission has followed these Guidelines, as far as possible.
7.2.9 The Commission has carried forward the process of tariff rationalization in this Order
to ensure that the tariffs of most of the categories are within +20% of the ACoS, while
at the same time ensuring that no category is faced with a tariff shock. The tariff of all
subsidising categories has been retained below +120% of ACoS.
7.2.10 The Commission has computed the ACoS of Rs. 7.55/kWh based on the ARR
approved for recovery in FY 2021-22. The ACoS approved by the Commission for FY
2021-22 after inclusion of Revenue Gap of FY 2019-20 along with carrying cost and
after adjustment of Revenue Surplus of APGCL and AEGCL works out to Rs.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 173
7.55/kWh, as shown in the Table below:
Table 108: ACoS approved by the Commission for FY 2021-22
Sr. No.
Particulars Units Amount
1 Cumulative Revenue Requirement for FY 2021-22
Rs. Crore 6,068.99
2 Total Sales for FY 2021-22 MU 8.037
3 Average Cost of Supply (ACoS) Rs/kWh 7.55
7.2.11 The Commission has retained the tariff categories and tariff slabs as approved in
previous Tariff Order dated March 7, 2020.
7.2.12 The detailed applicability and description of tariff categories has been elaborated in
the Tariff Schedule under Chapter 10 of this Order.
7.2.13 The benefit of the Cumulative Revenue Surplus has been passed on to the consumers
by reducing the energy charges by 15 to 20 paise per unit across all categories. The
Fixed/Demand Charges have not been reduced, as the recovery of fixed cost through
Fixed/Demand Charges is already on the lower side.
7.2.14 There is an overall decrease of 2.1% (~15 paise/unit) as compared to the existing tariff.
The cross-subsidy in tariff between consumer categories has been reduced further.
7.2.15 The applicability of Time-of-Day (ToD) tariff has been extended to LT Small Industries
and HT Small Industries, on an optional basis, in order to increase the coverage of
ToD tariffs and incentivise small industries. The night off-Peak rebate has been
retained at Rs. 2.00 per kWh, while the additional charges during peak hours have
been increased from Rs. 1.50 per kWh to Rs. 2.00 per kWh, in order to further
incentivise eligible consumer categories to shift more of their consumption from peak
hours to night off-peak hours.
7.2.16 At present, in FY 2020-21, GoA is providing targeted subsidies for a few categories. In
the absence of any written commitment from GoA for providing category-wise subsidy
in FY 2021-22, the Commission has approved the full cost tariff for FY 2021-22, as
shown in the Table below:
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 174
Table 109: Full Cost Tariff approved by the Commission for FY 2021-22
Sl. No.
Consumer Category
Increase/(Decrease) in tariffs
Revised tariffs
Fixed Charges
(Rs/kW/mth or
Rs/kVA/mth)
Energy Charges
(paise per kWh)
Fixed Charges
(Rs/kW/mth or
Rs/kVA/mth)
Energy Charges
(paise per kWh)
LT Category
LT-1 Jeevan Dhara 0.5 kW and 1 kWh/day
No Change No Change 20 425
LT-II Domestic A- above 0.5 kW to 5 kW
0 to 120 units per month
No Change (20) 50 490
121 to 240 units per month
No Change (20) 50 615
Balance units No Change (20) 50 715
LT-III Domestic-B above 5 kW to 25 kW
No Change (20) 50 675
LT-IV Commercial Load above 0.5 kW to 25 kW
No Change (20) 130 720
LT-V General Purpose Supply
A Non-commercial and Non-domestic users
No Change (15) 145 615
B
Government Primary and Secondary / Higher Secondary Schools
No Change (15) 70 615
LT-VI Public Lighting No Change (15) 120 625
LT-VII
Agriculture upto 7.5 HP
No Change (15) 45 430
LT-VIII(i)
Small Industries Rural upto 25 kW
No Change (15) 50 475
LT-VIII(ii)
Small Industries Urban upto 25 kW
No Change (15) 60 500
LT-IX Temporary Supply
Domestic No Change (15) 85 909
Non-Domestic Non- Agriculture
No Change (15) 135 1119
Agriculture No Change (15) 45 435
LT-X LT Electric Vehicles Charging Stations
No Change (15) 130 510
HT Category
HT-I HT Domestic 25 kW No Change (15) 50 680
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 175
Sl. No.
Consumer Category
Increase/(Decrease) in tariffs
Revised tariffs
Fixed Charges
(Rs/kW/mth or
Rs/kVA/mth)
Energy Charges
(paise per kWh)
Fixed Charges
(Rs/kW/mth or
Rs/kVA/mth)
Energy Charges
(paise per kWh)
and above
HT-II HT Commercial 25 kW & above
No Change (15) 180 710
HT-III Public Water Works
No Change (15) 135 605
HT-IV Bulk Supply 25 kW and above
HT-IV(i)
Educational Institutions
No Change (15) 130 645
HT-IV(ii)
Others No Change (15) 180 720
HT-V(A)
HT Small Industries upto 50 kVA
No Change (15) 70 545
HT-V(B)
HT Industries-1 50 kVA to 150 kVA
No Change (15) 160 585
HT-V(C)
HT Industries-II above 150 kVA (Option 1)
No Change (15) 220 635
HT Industries-II above 150 kVA (Option 2)
No Change (15) 300 595
HT-VI Tea, Coffee & Rubber
No Change (15) 270 635
HT-VII
Oil & Coal No Change (15) 300 740
HT-VIII
HT Irrigation Load above 7.5 HP
No Change (15) 65 580
HT - IX
HT Temporary Supply
No Change (15) 170 885
HT – X
HT Electric Crematorium
No Change (15) 170 415
HT – XI
HT Railway Traction
No Change (15) 300 595
HT-XII
Electric Vehicles Charging Station
No Change (15) 160 660
Note: These are Base Tariffs; Additional ToD tariffs have been detailed in the Tariff Schedule
7.2.17 In case the GoA desires to provide category-wise subsidy in FY 2020-21 under Section
65 of the EA 2003, after the issue of this Order, the GoA may do so under intimation
to the Commission. APDCL shall levy category-wise tariffs after adjusting the amount
of category-wise subsidy announced by the GoA, under intimation to the Commission
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 176
along with the complete calculations in this regard. APDCL shall obtain post-facto
approval of the Commission for the category-wise tariff after giving effect to the
targeted subsidy, as applicable.
The detailed Tariff Schedule is given in Chapter 10.
7.3 Category-wise Cross-subsidy
7.3.1 The Commission has computed the cross-subsidy with respect to the ACoS and
attempted to ensure that the cross-subsidies are within the limits of +20% of the ACoS,
as laid down in the Tariff Policy as well as several Judgments of Hon’ble APTEL. The
category-wise cross-subsidy approved for FY 2021-22 by the Commission in this Order
are given in the Table below:
Table 110: Category-wise Cross-Subsidy approved for FY 2021-22
Sr.
No.
Category of
consumers
Average
Billing
Rate
(Paise/
kWh)
Average
Cost of
Supply
(Paise/
kWh)
Ratio of
ABR to
ACOS (%)
Cross-subsidy
provided
/(received) (%)
LT Category
1. Jeevan Dhara 0.5 kW
and 1kWh/day 4.85 7.55 64% - (36%)
2. Domestic A- above 0.5
kW to 5 kW 5.98 7.55 79% - (21%)
3. Domestic-B above 5
kW to 25 kW 8.20 7.55 109% +(9%)
4. Commercial Load
above 0.5 kW to 25 kW 9.05 7.55 120% +(20%)
5. General Purpose
Supply 7.82 7.55 104% +(4%)
6. Public Lighting 7.05 7.55 93% -(7%)
7. Agriculture upto 7.5 HP 5.05 7.55 67% - (33%)
8. Small Industries Rural
upto 25 kW 6.04 7.55 80% - (20%)
9. Small Industries Urban 6.47 7.55 86% - (14%)
HT Category
11. HT Domestic 25 kW
and above 7.42 7.55 98% - (2%)
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 177
Sr.
No.
Category of
consumers
Average
Billing
Rate
(Paise/
kWh)
Average
Cost of
Supply
(Paise/
kWh)
Ratio of
ABR to
ACOS (%)
Cross-subsidy
provided
/(received) (%)
12. HT commercial 25 kW
& above 8.83 7.55 117% +(17%)
13. Public Water Works 6.88 7.55 91% - (9%)
14 Bulk Supply -
Educational Institutions 7.35 7.55 97% - (3%)
15 Bulk Supply Others 8.54 7.55 113% +(13%)
15. HT Small Industries
upto 50 kVA 6.31 7.55 84% - (16%)
16. HT Industries-1 50 kVA
to 150 kVA 7.15 7.55 95% - (5%)
17. HT Industries-II above
150 kVA 7.88 7.55 104% +(4%)
18. Tea, Coffee & Rubber 7.87 7.55 104% +(4%)
19. Oil & Coal 8.86 7.55 117% +(17%)
20. HT Irrigation Load
above 7.5 HP 8.15 7.55 108% +(8%)
Note: (+) Cross-subsidy provided to other consumer categories
(-) Cross-subsidy received from other consumer categories
7.3.2 As can be seen from the above Table, the Average Billing Rate for almost all categories
is within the band of 80% to 120% of ACoS, which is in accordance with the Tariff
Policy.
7.4 Fuel Price and Power Purchase Adjustment Charges (FPPPA)
7.4.1 Fuel Price and Power Purchase Adjustment charges as per the Regulations notified
by the Commission are applicable. As per Regulation 5.2 of the AERC (Fuel and Power
Purchase Price Adjustment) Regulations, 2010 “The FPPPA charges shall not exceed
25% of the variable cost component of tariff or such other ceiling as may be stipulated
by the Commission from time to time, where the variable component of tariff is defined
as total estimated revenue from energy charges (EC) in a year the approved in the
Tariff Order divided by total estimated sales of the year. When FPPPA charges exceed
25% of the variable component of tariff, the licensee shall make a petition to the
Commission for recovery of the charges over the specified cap which shall be
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 178
recovered after Commission’s scrutiny and directives”.
7.4.2 APDCL shall strictly follow the above Regulation and when FPPPA charges exceed
25% of the variable components of the tariff, APDCL shall file a Petition before the
Commission and FPPPA charges beyond 25% of the variable cost component of tariff
shall be recovered only after Commission’s scrutiny and approval.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 179
8 Wheeling Charges and Cross-Subsidy Surcharge
8.1 Introduction
8.1.1 The Commission has, in the present Order, determined the Wheeling Charges and
Cross-Subsidy Surcharge applicable for Open Access consumers of APDCL for FY
2021-22.
8.2 Allocation Matrix
8.2.1 APDCL submitted that it has retained the Allocation Matrix considered in previous Tariff
Orders by the Commission for allocation of expenses between the Wires Business and
Retail Supply Business for FY 2021-22.
8.2.2 Accordingly, APDCL has proposed the following separation of ARR for Wires and
Supply Business for FY 2021-22:
Table 111: Separation of ARR for Wires and Retail Supply Business for FY 2021-22 as
submitted by APDCL (Rs. Crore)
Sr.
No. Particulars
Gross
Amount
Wires
Business
Retail
Supply
Business
1 Power Purchase Expenses 6028.53 0.00 6028.53
2 Employee Expenses 837.99 502.79 355.20
3 R&M Expenses 255.90 230.31 25.59
4 A&G Expenses 53.19 26.60 26.60
5 Depreciation 62.53 56.28 6.25
6 Interest and Finance Charges 129.91 116.92 12.99
7 Interest on Working Capital - - -
8 Interest on CSD 38.06 - 38.06
9 Return on Equity 287.33 258.60 28.73
10 Provisioning for Bad & Doubtful Debts 22.10 - 22.10
11 Less: Non-Tariff Income 409.75 - 409.75
12 Less: Other Income 341.40 34.14 307.26
Total ARR 6964.40 1157.36 5807.04
Commission’s Analysis
8.2.3 The Commission has considered the following Allocation Matrix for allocation of
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 180
expenses between the Wires Business and Retail Supply Business, as adopted in its
previous Orders:
Table 112: Allocation Matrix for Separation of ARR for Wires Business and Retail
Supply Business for FY 2021-22
Sr.
No.
Particulars Wires
Business
Retail Supply
Business
1 Power Purchase expenses 0% 100%
2 Employee expenses 60% 40%
3 Repair and Maintenance expenses 90% 10%
4 Administration and General expenses 50% 50%
5 Depreciation 90% 10%
6 Interest and Finance charges 90% 10%
7 Interest on Working Capital 10% 90%
8 Interest on Consumers’ Security deposit 0% 100%
9 Provision for Bad & Doubtful debts 0% 100%
10 Return on Equity 90% 10%
11 Other Income 10% 90%
12 Non-Tariff Income 0% 100%
8.2.4 The Commission has adopted the above Allocation Matrix for segregation of the
approved ARR for the Wires Business and Retail Supply Business for APDCL for FY
2021-22, as given below:
Table 113: Separation of ARR for Wires Business and Retail Supply Business for FY
2021-22 (Rs. crore)
Sr.
No.
Particulars Total ARR Wires
Business
Retail
Supply
1 Power Purchase expenses 5,444.22 - 5,444.22
2 Employee expenses 813.58 488.15 325.43
3 R&M expenses 210.62 189.55 21.06
4 A&G expenses 45.56 22.78 22.78
5 Depreciation 16.65 14.99 1.67
6 Interest and Finance charges 24.31 21.88 2.43
7 Interest on Working Capital 5.11 0.51 4.60
8 Interest on Consumers’ Security
Deposit 38.06 - 38.06
9 Provision for Bad & Doubtful Debts 22.10 - 22.10
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 181
Sr.
No.
Particulars Total ARR Wires
Business
Retail
Supply
10 Return on Equity 75.91 68.32 7.59
11 Less: Other Income 356.82 35.68 321.14
12 Less: Non-Tariff Income 395.62 - 395.62
13 ARR 5,943.69 770.50 5,173.18
8.3 Wheeling Charges
8.3.1 APDCL submitted the projected Wheeling Charges applicable for distribution open
access consumers at 33 kV voltage level for FY 2021-22 based on the ARR allocated
to the Distribution Wires Business, as shown in the following Table:
Table 114: Wheeling Charges submitted by APDCL for FY 2021-22
Sr.
No.
Particulars Units Amount
1 Net ARR of Wires Business Rs. Crore 1157.36
2 Total Energy Input into Distribution system MU 10,141
3 Distribution Cost for Wires Business for 33 kV
voltage level (assuming 35% of cost at 33 kV) Rs. Crore 405.08
4 Wheeling charges for 33 kV Voltage level Rs./kWh 0.40
Commission’s Analysis
8.3.2 The Wheeling Charges applicable for Distribution Open Access consumers at 33 kV/11
kV voltage level for FY 2021-22, have been determined from the ARR allocated to the
Distribution Wires Business, as shown in the Table below:
Table 115: Wheeling Charges approved by the Commission for FY 2021-22
Sr.
No. Particulars Units Total
1 Net ARR of Wire Business Rs. Crore 770.50
2 Total Energy Input into Distribution system MU 9,455
3 Distribution Cost for Wires Business for 33 kV
voltage level (assuming 35% of cost at 33 kV) Rs. Crore 269.68
4 Wheeling charges for 33 kV/11 kV voltage level paise/kWh 29
8.3.3 The Wheeling Charges for FY 2021-22 as determined in the above Table, are
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 182
applicable for use of the distribution system of APDCL by other Licensees or
generating companies or captive power plants or consumers/users who are permitted
Open Access at 33 kV/11 kV voltage level under Section 42(2) of the Electricity Act,
2003.
8.4 Applicable Wheeling Losses
8.4.1 The Wheeling Losses applicable for Open Access transactions for FY 2021-22 shall
be as under:
Table 116: Wheeling Losses approved by the Commission for FY 2021-22
Sr. No. Particulars Total
1 At 33 kV level 5%
2 At 11 kV level 11%
8.5 Cross-Subsidy Surcharge (CSS)
8.5.1 The Open Access consumers are liable to pay the CSS to compensate the utility for
any loss of revenue due to the shifting of the consumer to the Open Access system.
Eligible consumers with a connected load of 1 MW and above shall be allowed Open
Access.
8.5.2 APDCL has proposed CSS for HT-II Commercial Category, HT-IV (i) Bulk Supply Govt.
Edu. Institutions category, HT-IV (ii) Bulk Supply Others category, HT-V (C) HT
Industry category, HT-VI Tea, Coffee & Rubber category, and HT-VII Oil & Coal
category, as shown in the Table below:
Table 117: Category-wise CSS submitted by APDCL for FY 2021-22
Particulars Legend Rs./kWh
Average Billing Rate for HT Commercial category A 9.54
Average Billing Rate for HT Bulk Supply - Govt. Edu. Inst.
Category B 8.69
Average Billing Rate for HT Bulk Supply Others category C 10.02
Average Billing Rate for HT-II Industry above 150 kW category D 9.88
Average Billing Rate for Tea, Coffee & Rubber category E 9.84
Average Billing Rate for Oil & Coal category F 9.33
Average Cost of Supply G 8.23
CSS for HT Commercial category H = A - G 1.31
CSS for HT Bulk Supply - Govt. Edu. Inst. Category I = B - G 0.47
CSS for HT Bulk Supply Others category J = C - G 1.80
CSS for HT-II Industry above 150 kW category K = D - G 1.65
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 183
Particulars Legend Rs./kWh
CSS for Tea, Coffee & Rubber category L = E - G 1.62
CSS for Oil & Coal category M = F - G 1.10
Commission’s Analysis
8.5.3 The Commission has computed the CSS for relevant category of consumers for FY
2021-22, as the difference between the ABR and ACoS for the category, subject to the
limit of 20% of ABR in accordance with the Tariff Policy, 2016, as shown in the Table
below:
Table 118: Category-wise CSS for FY 2021-22 as approved by the Commission
Particulars Legend Rs./kWh
ABR for HT Commercial category A 8.83
ABR for HT Bulk Supply - Govt. Edu. Inst. Category B 7.35
ABR for HT Bulk Supply Others category C 8.54
ABR for HT-II Industry above 150 kW category D 7.88
ABR for Tea, Coffee & Rubber category E 7.87
ABR for Oil & Coal category F 8.86
Average Cost of Supply G 7.55
CSS for HT Commercial category H = A - G 1.28
CSS for HT Bulk Supply - Govt. Edu. Inst. Category I = B - G 0.00
CSS for HT Bulk Supply Others category J = C - G 0.99
CSS for HT-II Industry above 150 kW category K = D - G 0.33
CSS for Tea, Coffee & Rubber category L = E - G 0.32
CSS for Oil & Coal category M = F - G 1.31
8.6 Applicability of Tariff
8.6.1 The approved Retail Supply Tariffs, Wheeling Charges and CSS for FY 2021-22 shall
be effective from April 01, 2021 and shall continue until replaced by a subsequent
Order of the Commission.
Sd/-
(S.N. Kalita)
Member, AERC
Sd/-
(B. Borthakur)
Member, AERC
Sd/-
(K.S Krishna)
Chairperson, AERC
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 184
9 Directives
The Commission issued certain directives to APDCL in the past Orders, with an objective of
attaining operational efficiency and streamlining the flow of information, which would be
beneficial to the sector and the Petitioner, both in the short-term and long-term.
As regards the directives issued by the Commission in the Tariff Order dated 7th March, 2020,
APDCL submitted a report to the Commission on compliance. The Commission has reviewed
the compliance of directives as submitted by APDCL and the status is as follows:
Status of Directives issued in the Tariff Order dated 7th March, 2020
Directive 1: Safety measures
The Commission directs APDCL to take up awareness campaigns related to Electrical Safety
among the consumers. The Commission further directs that APDCL should take up training
of their technical persons especially at the field levels, on electrical safety related matters.
Simultaneously, the maintenance works for ensuring safety of the network in identified
vulnerable areas during the monsoons should be taken up on priority.
APDCL is further directed to submit quarterly reports regarding the implementation of safety
measures as suggested in the detailed project report prepared by APDCL as per the direction
of the Commission.
Status:
APDCL submitted that the Company decided to observe Safety Day on 26th of every month to
review the safety practices and also to create and renew safety consciousness among its own
staff and consumers.
During the Covid-19 pandemic period, APDCL organized Zoom conferences on the Safety
Day where various topics were discussed including safety practices.
APDCL entrusted the duties and responsibilities of Electrical Safety Officer to CGM (Marketing
& CR) of APDCL. Directions have been issued from his Office to all field officials for
compulsorily use of safety equipment, PPE kit, etc; in all Electrical Construction, Maintenance
and other related works and also instructed that no worker should be engaged in such works
without proper protection equipment.
APDCL has also been regularly publishing safety related matters, quickies, etc. in print media,
electronic media and social media.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 185
Commission’s views:
APDCL has complied with the directive. The Commission desires that APDCL continue to
carry out similar initiatives in future.
Directive 2: Energy Accounting
The Commission observes that there is no proper energy accounting in APDCL because of
absence of proper metering system at the interconnection points. This has become evident
during the execution of the pilot project of energy auditing taken up by the Commission in the
3 Electrical Circles, namely, GEC-II, Jorhat and Silchar.
The Commission directs APDCL to complete the metering at 33kV, 11 kV and DTR level for
ascertaining the voltage wise losses, proper energy accounting and assessment of technical
and commercial losses. The Commission is allocating an amount of Rs 10 (Ten) crore as
earmarked fund in addition to the fund already available to APDCL under various schemes.
The installation of the proper metering systems in the network should be completed within FY
2020-21.
APDCL is directed to submit the metering plan to be executed with the above Rs 10 crore
within 30th April, 2020.
Status:
APDCL informed that metering at different levels is being carried out under various Schemes
like IPDS, UDAY, SOPD, etc. The draft energy and revenue audit report of the three circles of
APDCL prepared by M/S PPS ENERGY SOLUTIONS is being examined for submission of
views/observations. Proper assessment can be made after finalisation of the report.
Meanwhile, various activities under different schemes got delayed in the wake of COVID
pandemic. APDCL requested the Commission to consider extension of the special allowance
considering the force majeure situation, as there is no certainty of State Govt. funding during
the year in the wake of COVID.
Commission’s views:
The Special Fund for metering for Energy Audit has been considered as Rs. 3.50 Crore, as
estimated by APDCL for FY 2020-21, against the amount of Rs. 10 Crore approved in the
Tariff Order in view of the reduced expenses on account of COVID protocols. The Commission
has issued fresh directive on the issue.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 186
Directive 3: Replacement of Defective Consumer Meters
APDCL has stated that 9.06 lakh consumer meters are defective. APDCL should take up a
special drive to replace these meters by issuing notices to the consumers (where meters are
supplied by the consumers) and replacing the meters from APDCL fund (where APDCL is
collecting monthly rent against the meters).
APDCL shall draw up an action plan within 30th April, 2020 and submit the same to the
Commission.
Status:
APDCL informed that the Company procured 108500 numbers of 1-ph DLMS compliant
meters from funding under SOPD 2019-20 on 11.05.2020. All these meters were allocated to
each Electrical Circle for specific use against stopped/defective matters. APDCL further
informed that further procurement during FY 2020-21 is dependent on funding from State
Government after normalization of COVID situation. At present all funding has been stopped.
Commission’s Views:
APDCL should continue to replace defective consumer meters and pursue the matter of funds
with the State Government. A fresh directive has been issued on this issue.
Directive 4: Sample Survey to detect tampering of Prepaid Meters
A number of cases of tampering / bypassing of prepaid meters has been brought to the notice
of the Commission. The Commission directs APDCL to carry out a sample survey to detect
any bypassing/ tampering of prepaid meters.
Status:
Sample survey was carried out on various prepaid meter installations in compliance to the
directive.
Commission’s Views:
Noted.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 187
Directive 5: Maintenance of Distribution Sub-stations
An appropriate mechanism for proper maintenance of the distribution sub-stations and lines
is necessary for good quality, reliable power supply and also for reduction of distribution
losses. While outsourcing of manpower for maintenance of the distribution substations may
be beneficial to the Company in the short-term, as financial involvement is less, however,
involving its own manpower for the task would help the Company in developing expertise
among the field level technical persons, which is likely to accrue greater benefits in the long
run.
The Commission, therefore, advises APDCL to have a relook at the strategy of managing
33/11 kV sub-stations through outsourcing, considering the long-term benefits.
Status:
APDCL submitted that with serious dearth in manpower vis-à-vis commissioning of various
sub-stations, APDCL was compelled to outsource maintenance of sub-stations. A RFP was
floated for handing over of 86 Sub-stations in 36 packages (14 packages with three Sub-
stations and 22 packages with two Sub-stations) with detailed cost benefit analysis.
Meanwhile, the same will be reviewed with materialisation of recruitment process in future for
optimal yield.
Commission views:
APDCL must build its own maintenance teams for every subdivision as a long-term strategy
and the Commission has issued fresh directive in this regard.
Directive 6: Formation of GPF Trust
Till formation of the GPF Trust, APDCL should keep the GPF contributions of employees
including the past liabilities in a separate bank account.
Status:
APDCL submitted that most of the employees under GPF are scheduled to attain age of
superannuation within 2024. As such, it is evident that the subscription amount will not be
adequate to meet the outflow. However, a dedicated bank account is maintained for
disbursement of GPF.
Commission views:
Noted.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 188
New Directives:
The Commission hereby issues the following new Directives to APDCL:
Directive 1: Energy Accounting
• The Commission directs APDCL to complete the metering at 33 kV, 11 kV and
DTR level in order to have a proper energy accounting system in place.
• Status report as on 31st December, 2020 should be submitted within 1 month.
• 100% metering shall be completed by 31st December, 2021.
• An in-house system of monitoring of the meters and network at 33 kV, 11 kV and
DTR level at each Electrical Circle should be introduced.
• All the defective meters shall be replaced within 31st December, 2021. A detailed
Plan in this regard should be submitted to the Commission within 30th April,
2021.
Directive 2: Reduction of Power theft
The Distribution Losses are still quite high in many Circles, as detailed in this Order.
• APDCL should undertake frequent vigilance raids to catch incidences of power
theft so that the Distribution Losses are minimised.
• APDCL should submit quarterly reports within 15 days of the end of each quarter
regarding the vigilance drives undertaken, additional amounts billed, cases
filed, etc.
Directive 3: Power Purchase
• APDCL should take all measures to optimise its power purchase cost.
• APDCL is directed to study different options for optimising its power purchase
portfolios for peak and off-peak periods and submit a comprehensive report to
the Commission within 30th September, 2021.
Directive 4: Prepaid and Smart Meters
• APDCL should simply the process for recharging the prepaid meters and make
it more consumer friendly. APDCL should explore the possibility of automated
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 189
recharge as is the practice in the telecom sector. APDCL shall submit a detailed
plan in this regard within 30th June, 2021.
• APDCL shall submit a comprehensive report to the Commission on the status of
smart metering projects in the State within 30th June, 2021.
Directive 5: FPPPA
• APDCL shall comply with the AERC (Fuel and Power Purchase Price
Adjustment) Regulations, 2010, to adjust the differential cost of power purchase.
The Commission may be constrained to disallow the carrying cost arising out of
gap in power purchase cost if the same is on account of APDCL’s failure to
recover the variation in power purchase cost in accordance with the aforesaid
Regulations.
Directive 6: Capacity Building
• The Commission directs APDCL to complete the recruitment process within the
MYT Control Period, in line with the manpower planning study conducted for all
3 Companies. APDCL should submit the Report on manpower planning study
within 1 month of issue of this Order. The organisational structure should duly
incorporate the effect of ERP implementation.
• APDCL should submit the training calendar for its employees for FY 2021-22,
duly approved by its Board, within 2 months of issue of this Order.
• In order to facilitate preventive and scheduled maintenance of Distribution
Substations and lines on time, dedicated Maintenance Teams should be
developed for every subdivision. APDCL should also plan proper training
programmes for these Maintenance Teams, as part of the training calendar to be
submitted within 2 months of issue of this Order, i.e., within April 15, 2021.
Directive 7: Implementation of HVDS to reduce distribution losses
APDCL submitted that number of LT consumers and LT lines have increased with
implementation of RGGVY/ DDUGJY/Saubhagya Schemes and these have made reduction
in distribution losses difficult.
• The Commission directs APDCL to implement High Voltage Distribution System
(HVDS) to reduce distribution losses, reduce lengths of LT lines and improve
voltage regulation.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 190
• APDCL is directed to submit an investment plan on the above to the
Commission within 30th September, 2021.
Directive 8: Improvement of Power Quality
• APDCL is directed to take appropriate steps to improve quality of service to its
consumers. The quality of power supply needs improvement, especially in the
rural areas. Adequate steps need to be taken so that reliable, uninterrupted and
quality power is made available to the consumers. A report on steps taken
should be submitted by 30th June, 2021.
• APDCL is further directed to furnish the Standards of Performance Reports in
pursuance to the provisions of the AERC (Distribution Licensees’ Standard of
Performance) Regulations, 2004 every quarter and a comparative statement of
the SOP achieved including reliability indices for past five years within 30th
September, 2021.
Directive 9: Consumer education and awareness
The Commission in the Tariff Order has already allocated special provision for consumer
awareness. The Commission is pleased to note that steps have been initiated by APDCL for
creating consumer awareness. However, further initiatives need to be taken.
• The Commission directs that APDCL should continue to take up awareness
campaigns on Electricity Safety and Consumer Grievance Redressal among the
consumers. An Activity Calendar for creating consumer awareness for FY 2021-
22 along with the cost estimation should be submitted to the Commission by
30th June, 2021.
Directive 10 – Coordination Committee
It has been observed by the Commission that there are common issues relating to power
generation, transmission, and distribution, which have been adversely affecting power supply
to consumers and which can be resolved by effective coordination between the three
Companies namely, APGCL, AEGCL and APDCL.
• The Commission, therefore, directs that a Coordination Committee be
constituted consisting of senior Officers from APGCL, AEGCL, SLDC and
APDCL for settlement of matters of common interests relevant to generation,
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 191
evacuation of power and supply to consumers. The Committee shall be headed
by the CGM, SLDC. This Coordination Committee shall meet as often as required,
but at least once in every quarter of each year. The Minutes of Meeting of each
Coordination Committee meeting shall be submitted to the Commission within
15 days of such meeting.
• The Commission directs that the Committee is to be constituted within 3 weeks
of issue of this Order, and a report regarding its constitution shall be submitted
to the Commission within 15th March, 2021.
APDCL is directed to submit the status of compliance of above Directives to the
Commission at the end of each quarter. The Commission will review the status in the
month following the end of that quarter.
Sd/- Sd/- Sd/-
(S.N. Kalita) (B. Borthakur) (K. S. Krishna)
Member, AERC Member, AERC Chairperson, AERC
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 192
10 Tariff Schedule
This Chapter details the tariffs applicable in the State of Assam with effect from April 1, 2021
until replaced/modified by a subsequent Order of the Commission.
For the purpose of this Schedule, the consumers are divided into two distinct groups based
on voltage of supply, i.e., LT Group and HT Group. The consumers are further divided into
categories based on purpose of supply and nature of supply.
Common Terms & Conditions for both, LT Group and HT Group
(a) Surcharge for delayed payment: Surcharge @ 1.5% per month or part thereof at simple
interest shall be levied, if payment is not made in full on or before the due date.
(b) Payments shall be made by cash/local cheque/DD/Electronic Transfer (where
applicable): For all payments made by DD, the commission shall be borne by the
consumers.
(c) The Tariff does not include any tax or duty, etc., on electrical energy that may be payable
at any time in accordance with any law/State Government Rule in force. Such charges,
if any, shall be payable by the consumers in addition to tariff charge.
LT GROUP
Supply Voltage 1 Ph, 230 V AC and 3 Ph, 415 V AC
Common Terms & Conditions for LT Group
(a) For the purpose of determination of monthly fixed charge based on Connected Load, the
Connected Load shall be rounded up to the next higher kW if the decimal is higher than 0.5
and the nearest lower kW if the decimal is lower than 0.5.
(b) For Jeevan Dhara consumers having Connected Load below 0.5 kW, Connected Load
shall be rounded off to 0.5 kW.
Power factor penalty and rebate
[Applicable for LT IV –Commercial, LT V – General Purpose Supply, LT VIII – Small Industries,
and HT I – Domestic, HT II – Commercial, HT III – Public Water Works, HT IV – Bulk Supply,
HT V (A) - Small Industries, HT V (B) – HT I Industry, HT V (C) – HT II Industry, HT VI – Tea,
Coffee & Rubber, HT VII – Oil & Coal, HT VIII – Irrigation, and HT X – Electric Crematorium]
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 193
(a) Power Factor Rebate:
a. In case, the average PF (leading or lagging) maintained by the consumer is
more than 0.85 and up to 0.95, a rebate of 1% on the Energy Charges on unit
consumption shall be applicable;
b. For PF (leading or lagging) of 0.95 and above up to 0.97, a rebate of 2% on the
Energy Charges on unit consumption shall be applicable;
c. For PF (leading or lagging) of 0.97 and above up to Unity PF, a rebate of 3%
on the Energy Charges on unit consumption shall be applicable.
(b) Power Factor Penalty:
a. In case average PF (leading or lagging) in a month for a consumer falls below
0.85, a penalty @1% for every 1% fall in PF (leading or lagging) from 0.85 to
0.60; plus 2% for every 1% fall below 0.60 shall be levied on total unit
consumption. PF penalty shall be levied on those consumers where PF is
recorded electronically.
LT Category-1 Jeevan Dhara:
Applicability
This Tariff shall be applicable for supply of power to any premises exclusively for the purpose
of own requirements with a Connected Load of not more than 0.5 kW and consumption up to
1 kWh/day or 30 kWh per month.
Consumption Energy Charge Fixed Charge
For consumption upto 30
kWh per month.
Rs. 4.25/kWh Rs. 20 per connection per
month
If any Jeevan Dhara consumer consumes more than 30 units per month for 2 consecutive
months, then such consumer should be transferred to Domestic A category and billed
accordingly thereafter, irrespective of the number of units consumed
LT Category –II: Domestic A:
Applicability
This tariff shall be applicable for supply of power to consumers having connected load below
5 kW for residential premises, exclusively for domestic purposes only. This shall also include
supply of power to occupants of flats in multi-storied buildings, if the premises have not been
classified under Domestic B or HT Domestic and receiving bulk power at single point without
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 194
any individual metering arrangements for domestic purposes.
Consumption Energy Charge Fixed Charge
First 120 kWh per month Rs. 4.90/kWh
Rs. 50/kW/ month From 121 – 240 kWh per
Month
Rs. 6.15/kWh
Balance kWh Rs. 7.15/kWh
NOTE:
If any part of the domestic connection is utilised for any use other than dwelling purpose like
commercial, industrial, etc., the entire consumption shall be treated under that category and
the respective tariff shall be applied for the entire consumption.
LT Category-III: Domestic-B:
Applicability
This tariff shall be applicable for supply of power to consumers having Connected Load of 5
kW and above up to 25 kW exclusively for domestic purposes only. This shall also include
bulk supply at single point for supply to occupants of flats in multi-storied buildings having
individual metering for domestic purposes.
Energy Charge Fixed Charge
For all consumption Rs 6.75/kWh Rs. 50/kW/month
NOTE:
If any part of the domestic connection is utilised for any use other than dwelling purpose like
commercial, industrial, etc., the entire consumption shall be treated under that category and
the respective tariff shall be applied for the entire consumption.
LT Category-IV: LT Commercial:
Applicability
This tariff shall be applicable for supply of power to consumers having Connected Load up to
25 kW to all establishments and institutions of commercial nature and connected with trading
activities, including commercial offices, Government and public sector commercial
installations, commercial houses, optical houses, shops, hotels, restaurants, bars,
refreshment stalls, showcases of advertisements, theatres, cinema halls, guest houses,
laundries, dry-cleaners, Railway stations, public and private bus-stands not covered under any
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 195
other category of consumers, copy works, X-ray installations, private nursing homes/clinical
laboratories, photographic studios, battery charging units, workshops, petrol pumps, factory &
printing presses not using motive power in the manufacturing process, private educational and
cultural institutions (excluding institutions covered under the LT V General Purpose Supply),
lodging and boarding houses.
Energy Charge Fixed Charge
For all consumption Rs. 7.20/kWh Rs. 130/kW/month
LT Category V- LT General Purpose Supply:
Applicability
a. This tariff shall be applicable for supply of power to consumers having Connected Load
up to 25 kW to all Non-commercial and Non-domestic users of electric power like
Government offices, Government Educational and cultural institutions, Government
hospitals, dispensaries, Charitable institutions and Trusts (public or private formed
solely for charitable or religious purposes), Dharamshala, Non-commercial boarding
and lodging houses and other Non-commercial institutions, Private Educational
Institutions affiliated to Secondary Education Board of Assam (SEBA) / Assam Higher
Secondary Education Council (AHSEC) / Central Board of Secondary Education
(CBSE) / Council for the Indian School Certificate Examination (CISCE) and
Universities approved by Government of Assam
Energy Charge Fixed Charge
For all consumption Rs. 6.15/kWh Rs. 145/kW/month
b. Government Primary and Secondary / Higher Secondary Schools
Energy Charge Fixed Charge
For all consumption. Rs. 6.15/kWh Rs. 70/kW/month
LT Category VI-Public Lighting:
Applicability
This tariff is applicable to supply of power for street lighting systems in Municipalities, Town
Committees and Panchayat, etc., Signal systems in roads and park lighting, in areas of
Municipality/Town Committee/Panchayat, etc.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 196
Energy Charge Fixed Charge
For all consumption Rs. 6.25/kWh Rs. 120/kW/month
N.B. In case any unmetered supply is provided in exigency, the energy shall be assessed
considering 12 hours per day burning hours for the energy charge. For example, if the total
connected load of the street light service is 1 kW, energy shall be assessed as 12 units per
day.
LT Category VII-Agriculture:
Applicability
This tariff shall be applicable for supply of power for agriculture / irrigation purpose in the
agricultural sector having Connected Load up to 25 kW.
Energy Charge Fixed Charge
For all consumption. Rs. 4.30/kWh Rs. 45/kW/month
LT Category VIII – Small Industries:
Applicability
This tariff is applicable for supply of power for industrial purposes having licence from
designated authority of appropriate Government and not covered under any other category,
for consumers having Contract Demand/Connected Load up to 25 kW.
Category Energy Charge Fixed Charge
Rural Industries – for all consumption Rs. 4.75/kWh Rs. 50/kW/month
Urban Industries - for all consumption Rs. 5.00/kWh Rs. 60/kW/month
In addition to the above Base Tariff, the following Time of Day (TOD) tariff for LT-VIII Small
Industries shall be optionally applicable:
Time Slot Energy charge (Rs./kWh)
0600 hrs to 1700 hrs (normal) 0.00
1700-2200 hrs (peak) (+) 2.00
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 197
2200-0600 hrs (night off-peak) (-) 2.00
LT Category IX: Temporary Supply:
Applicability
This Tariff will be applicable for electric supply of power at LT, which is temporary in nature for
a period not exceeding one month.
Category Charges
Domestic Rs. 85/kW/day or Rs. 9.09/kWh whichever is higher
Non-Domestic Non- Agricultural Rs.135/kW/day or Rs. 11.19/kWh whichever is higher
Agricultural Rs. 45/kW/day or Rs. 4.35/kWh whichever is higher.
LT Category X- Electric Vehicles Charging Station:
Applicability
This tariff is applicable to consumers who use electricity exclusively for Electric Vehicle
Charging installations at LT level.
Energy Charge Fixed Charge
For all consumption Rs. 5.10/kWh Rs. 130/kW/month
Note: Consumers can charge their own Electric Vehicles at their respective premises, paying
the charge applicable to the consumer category.
HT GROUP
Tariff for this group is applicable for those consumers availing power supply at 11 kV or above.
Calculations shall be deemed to be in kVA for consumers under this part of the tariff schedule.
However, consumers above 25 kW (or 30 kVA) Connected Load and drawing power at LT are
also covered under this Group. During the period of conversion from LT supply to HT supply,
the consumer shall have to pay the necessary compensatory charges (10% and 3% of total
energy consumption for LT line & DTR, respectively).
Common Terms & Conditions for HT Group
a. For supply at voltages higher than as applicable to the consumers, rebate @ 3% shall be
applicable on energy consumption for each higher level of voltage, and a surcharge of 3%
shall be applicable if consumer draws power at lower than the applicable voltage level.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 198
b. In case, metering is done on the L.T. side of the distribution transformer, for a group of
consumers receiving power, then for the purpose of billing, an additional energy
consumption on account of transformer loss computed @ 3% on the consumer’s Energy
Charges shall be added.
c. Voltage Rebate
i. A rebate of 3% in the Energy Charges shall be applicable for all consumers taking
supply at 132 kV.
ii. ii) A rebate of 1.5% in the Energy Charges shall be applicable for all consumers
taking supply at 33 kV.
d. Contract Demand: The Contract Demand shall be as per the Agreement executed
between the consumer and APDCL. In case declaration/option is not made by the
consumer, 100% of the Connected Load converted to kVA shall be the contracted demand.
e. Billable Demand: Billing demand shall be 100% of Contracted Demand or Recorded
Demand, whichever is higher. In case the meter remains defective in a month, billing
demand shall be considered as per clause 6.3.4 of AERC (Electricity Supply Code)
Regulations, 2017, as amended from time to time.
f. Overdrawal Penalty: If the Recorded Demand is higher than the Contracted Demand in
a month, then fixed charge based on Contracted Demand shall be levied at three times
the normal rate for the portion of demand exceeding the Contracted Demand.
HT Category I: HT Domestic
Applicability
This tariff shall be applicable for supply of power to consumers having Connected Load above
25 kW (or 30 kVA) to residential premises, exclusively for domestic purposes only. This shall
also include supply of power to occupants of flats in multi storied buildings/ residential colony,
receiving bulk power at single point with single metering for domestic purposes.
Energy Charge Fixed Charge
For all consumption Rs 6.80/kWh Rs 50/kVA/month
NOTE:
If any part of the domestic connection is utilised for any use other than dwelling purpose like
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 199
commercial, industrial, etc., the entire consumption shall be treated under that category and
the respective tariff shall be applied for the entire consumption.
HT Category-II: HT Commercial
Applicability
This tariff shall be applicable for supply of power to consumers having Connected Load above
25 kW (or 30 kVA) to all establishments and institutions of commercial nature and connected
with trading activities, including commercial offices, Government and public sector commercial
installations, commercial houses, optical houses, shops, shopping malls, restaurants, hotels,
bars, refreshment stalls, showcases of advertisements, theatres, cinema halls, guest houses,
laundries, dry-cleaners, Railway stations, public and private bus-stands not covered under any
other category of consumers, copy works, X-ray installations, private nursing homes/clinical
laboratories, photographic studios, battery charging units, workshops, petrol pumps, factory &
printing presses not using motive power in the manufacturing process, private educational and
cultural institutions (excluding institutions covered under the HT IV (i) Bulk Supply –
Educational Institutions), lodging and boarding houses.
Energy Charge Fixed Charge
For all consumption. Rs. 7.10/kWh Rs. 180/kVA/month
HT Category - III: Public Water Works
Applicability
This tariff is applicable for public water supply maintained by Government or Government
Corporations, Municipalities, Town Committees and Panchayats.
Energy Charge Fixed Charge
For all consumption. Rs. 6.05/kWh Rs. 135/kVA/month
HT Category – IV: Bulk Supply
Applicability
This tariff is applicable to Bulk consumers with a Connected Load above 25 kW (or 30 kVA)
provided that the consumers not covered by any other category such as any domestic
connection, industries, tea, etc., and who make their own internal distribution arrangement at
their own cost and receive power at the point of supply at high or extra high voltage. This is
further classified as under:
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 200
(i) Educational institution-
a. Government Educational Institutions
b. Private Educational Institutions affiliated to Secondary Education Board of
Assam (SEBA) / Assam Higher Secondary Education Council (AHSEC) /
Central Board of Secondary Education (CBSE) / Council for the Indian
School Certificate Examination (CISCE) and Universities approved by
Government of Assam
(ii) Others - categories not included in any of the above categories, including
Government offices, Railways, Military Engineering Services, etc.
(i) Educational Institutions
Energy Charge Fixed Charge
For all consumption. Rs. 6.45/kWh Rs. 130/kVA/month
(ii) Others
Energy Charge Fixed Charge
For all consumption. Rs. 7.20/kWh Rs.180/kVA/month
HT Category V (A): HT Small Industries;
Applicability
This tariff is applicable for supply of power for industrial purposes having licence from
designated authority of appropriate Government and not covered under any other category,
for consumers with Connected Load above 25 kW (or 30 kVA) and up to 50 kVA, irrespective
of location of the industry in rural area or urban area.
Energy Charge Fixed Charge
For all consumption. Rs. 5.45/kWh Rs. 70/kVA/month
In addition to the above Base Tariff, the following Time of Day (TOD) tariff for HT-V (A)
Industries shall be optionally applicable:
Time Slot Energy charge (Rs./kWh)
0600 hrs to 1700 hrs (normal) 0.00
1700-2200 hrs (peak) (+) 2.00
2200-0600 hrs (night off-peak) (-) 2.00
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 201
HT Category V (B)-HT-I Industries
Applicability
This tariff is applicable for supply of power to industrial consumers having licence from
designated authority of appropriate Government and not covered under any other category,
at a single point for industrial purposes with Contract Demand/Connected Load above 50 kVA
and up to 150 kVA.
Energy Charge (Base
Tariff)
Fixed Charge
For all consumption Rs. 5.85/kWh Rs. 160/kVA/month
TOD tariff
In addition to the above Base Tariff, the following Time of Day (TOD) tariff for HT-I industries
shall be applicable:
Time Slot Energy charge (Rs. /kWh)
0600 hrs to 1700 hrs (normal) 0.00
1700-2200 hrs (peak) (+) 2.00
2200-0600 hrs (night off-peak) (-) 2.00
HT Category V (C): HT-II Industries
Applicability
This tariff is applicable for supply of power at a single point for industrial purposes having
licence from designated authority of appropriate Government and not covered under any other
category, for Contract Demand/Connected Load above 150 kVA.
(a) Tariff
A consumer may opt for any one of the following Options depending on his requirements by
prior intimation to concerned billing unit of Discom. A consumer may change his Option only
after six months of availing that particular Option.
Option -1
Energy Charge
(Base Tariff)
Fixed Charge
For all consumption Rs. 6.35/kWh Rs. 220/kVA/month
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 202
In addition to the above Base Tariff, the following Time of Day (TOD) tariff for HT-II Industries
shall be applicable:
Time Slot Energy charge (Rs./kWh)
0600 hrs to 1700 hrs (normal) 0.00
1700-2200 hrs (peak) (+) 2.00
2200-0600 hrs (night off-peak) (-) 2.00
Option -2
Energy Charge Fixed Charge
For all consumption Rs. 5.95/kWh Rs. 300/kVA/month
No TOD Tariff will be applicable for consumers who opt for Option-2.
HT Category VI-Tea, Coffee and Rubber:
Applicability
This tariff is applicable for tea, coffee and rubber plantation/production by utilisation of
electrical power in factory, irrigation, lighting, etc., in the Estate.
Energy Charge
(Base Tariff)
Fixed Charge
For all consumption. Rs. 6.35/kWh Rs. 270/kVA/month
In addition to the above Base Tariff, the following Time of Day (TOD) tariff for HT-VI Tea,
Coffee & Rubber shall be applicable:
Time Slot Energy charge (Rs./kWh)
0600 hrs to 1700 hrs (normal) 0.00
1700-2200 hrs (peak) (+) 2.00
2200-0600 hrs (night off-peak) (-) 2.00
HT Category VII - Oil and Coal
Applicability
This tariff shall be applicable for supply of power to consumers at a single point for installations
of Oil and Coal Sector.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 203
Energy Charge (Base
Tariff)
Fixed Charge
For all consumption Rs 7.40/kWh Rs. 300/kVA/month
In addition to the above Base Tariff, the following Time of Day (TOD) tariff for HT-VII Oil and
Coal shall be applicable:
Time Slot Energy charge (Rs./kWh)
0600 hrs to 1700 hrs (normal) 0.00
1700-2200 hrs (peak) (+) 2.00
2200-0600 hrs (night off-peak) (-) 2.00
HT Category VIII: HT Irrigation
Applicability
This tariff shall be applicable for electricity supply for agriculture / irrigation purpose in the
agricultural sector for pump set above 25 kW (or 30 kVA) and for whom power has been
supplied at 11 kV or above.
Energy Charge Fixed Charge
For all consumption. Rs. 5.80/kWh Rs. 65/kVA/month
HT Category IX: Temporary Supply
Applicability
This Tariff will be applicable for electric supply of power at HT which is temporary in nature for
a period not exceeding one month.
HT Category – X: Electric Crematorium
Applicability
This tariff is applicable for electricity used in Electric Crematoriums for all purposes, including
lighting.
Charges
Rs. 170/kVA/day or Rs. 8.85/kWh, whichever is higher
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 204
Energy Charge Fixed Charge
For all consumption Rs. 4.15/kWh Rs. 170/kVA/month
HT Category – XI: Railway Traction
Applicability
This tariff is applicable to the Railways for traction loads.
Energy Charge Fixed Charge
For all consumption Rs. 5.95/kWh Rs. 300/kVA/month
HT Category – XII: Electric Vehicles Charging Stations
Applicability
This tariff is applicable to consumers who use electricity exclusively for Electric Vehicle
Charging installations at HT level.
Energy Charge Fixed Charge
For all consumption. Rs. 6.60/kWh Rs. 160/kVA/month
Note: Consumers can charge their own Electric Vehicles at their respective premises, paying
the charge applicable to the consumer category.
This Tariff Order shall continue to be applicable until it is replaced/modified by a
subsequent Order of the Commission.
This Tariff Order is signed by the Assam Electricity Regulatory Commission on February
15, 2021.
These Tariffs take effect from April 01, 2021.
Sd/- Sd/- Sd/-
(S.N. Kalita)
Member, AERC
(B. Borthakur)
Member, AERC
(K.S. Krishna)
Chairperson, AERC
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 205
11 Annexure 1: Minutes of the 27th Meeting of the
State Advisory Committee
VENUE: AERC Conference Hall.
DAY/DATED: Saturday, 19th December, 2020.
LIST OF MEMBERS/SPECIAL INVITEES: At Annexure-1 (Enclosed)
The 27th Meeting of State Advisory Committee (SAC) was chaired by the Hon’ble Chairperson,
AERC, Shri S C Das, IAS, (Retd.)
The Hon’ble Chairperson, welcomed all members and invitees to the 27th meeting of SAC and
thanked all members for their presence, even after postponing the meeting twice due to
COVID and the demise of former CM Late Tarun Gogoi. Thereafter, Hon’ble Chairperson
asked new members of SAC which had been notified vide No AERC.37/2002/Pt-VI/146 dated
5th August,2020 to introduce themselves. Hon’ble Chairperson opined that all new members
should advise the Commission regarding actions, schemes, etc. for better functioning of the
power sector in the State of Assam.
The welcome address was followed by an introductory session among the members and
invitees. Thereafter, the agenda items were taken up for discussion in seriatim. The important
points discussed in the course of the meeting are briefly recorded below.
Agenda: Confirmation of the Minutes of the 26th Meeting of SAC held on 13.02.2020.
The draft Minutes of the 26th meeting of the Committee was circulated among the Members
and Special Invitees in August 2019. Comments were received from a few members and these
were incorporated in the minutes before finalizing. During the discussion Shri K Medhi,
Secretary NESSIA advised the Commission to fix the timeline for every action to be taken.
The final minutes were confirmed and accepted by the members.
Agenda: Action taken on the minutes of the 26th Meeting of SAC.
A powerpoint presentation was made by Assistant Director (Engineering) AERC, Shri J.
Bezbaruah on the salient features of action taken reports submitted by the power utilities.
Important points of the discussion are noted below-
The members of SAC enquired about the status of 250 MW Natural gas based power station
at Chandrapur and 725 MW Gas based Thermal power station at north bank of Brahmaputra.
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 206
APGCL in its action taken report informed that M/S TATA Consulting Engineers Limited has
submitted the draft PFRs for setting up of these power stations.
Shri D.K Sarma, Member, SAC advised that there should be a comprehensive generation plan
of APGCL so that it can cater to the growing load demand of the state. Hon’ble Chairperson
said that Principal Secretary, Department of Power, GoA had already taken note of that.
Regarding high cost of power from NEEPCO’s Pare Hydro Electric Project and the expected
high cost of power from NHPC’s Subansiri Hydro Electric Project, the Hon’ble Chairperson
and Hon’ble Member (Technical) advice GoA to take up the matter with MoP. Shri Subodh
Sharma also advised APDCL to take up the matter with GoA, he also pointed out regarding
high PoC charge on with Hon’ble Chairperson information the members that new regulation
by CERC is going to be placed very soon.
Shri Subodh Sharma, Member, SAC advised APDCL to make a study on the Solar project and
its commercial effect.
Agenda: Presentation by Power Grid on NERPSIP Project.
A brief presentation was made by M/s Power Grid Corporation of India Ltd. on North Eastern
Region Power System Improvement Project (NERPSIP),
➢ Sanctioned Project Cost : Rs.1473.80 Cr (Feb’14 price level)
➢ Revised Project Cost : Rs.1914.58 Cr.
➢ Funding of the Project : 50:50 (Govt. of India : World Bank)
➢ Expected Completion: Progressively till Dec’21
In the presentation, PGCIL has also submitted the present progress of EHV SS, Extn. & Aug.
of Existing EHV Substations, EHV Transmission Lines, New 33/11kV Substations, Extn. of
33/11kV Substations and 33kV Line,
PGCIL highlighted certain RoW issues where they sought assistant for early completion of the
line. Hon’ble Chairperson advised to take assistance from local administration to complete the
projects.
Agenda: Discussion on the approach to the Tariff determination by AEGCL, APGCL and
APDCL.
The three companies APDCL, APGCL, and AEGCL made a brief presentation on the tariff
determination for the FY 2021-22. Salient features of the tariff determination as mentioned
below –
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 207
APDCL -
Particulars for FY 2021-22 APDL Projected
(Rs Crore)
a. Standalone Aggregate Revenue Requirement
6964.4
a1. Addl RoE on enhancement of equity
261.29
A. Net amount without addl RoE (a - a1)
6703.1
B. True up for FY 2019-20 250.14
C. Rebate from CPSU for COVID during FY 20-21
69.99
Total (A+B-C): 6883.25
Average Rate (Rs./kWh) 8.23
Proposed increase (%) 5%
APGCL -
Particulars for FY 2021-22 APGCL Projected
Gross Generation (MU) 1480.35
Auxiliary Consumption (%) 3.40%
Net Generation (MU) 1430.27
Total Fixed Charges (Rs. Crore)
220.52
Fuel Cost (Rs. Crore) 151.48
Total Revenue Requirement (Rs. Crore)
371.99
Fixed Charge Per Unit (INR / kWh)
1.54
Energy Charge Per Unit (INR / kWh)
1.06
Proposed Tariff (INR / kWh) 2.6
AEGCL
Particulars for FY 2021-22 AEGCL Projected
Aggregate Revenue Requirement
427.79
Net Aggregate Revenue Requirement
417.79
Transmission Charge (Rs./ kWh)
0.396
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 208
During the presentation of APGCL was asked to give a supplementary tariff petition
incorporating estimated generation of NRPP.
Agenda: Comment and suggestion of the Members.
MD, APDCL has mentioned that APDCL is going to hold a recruitment drive as the acute
shortage of manpower is hampering its functions. Prof. M.P Bezbaruah and Sri Subodh
Sharma advised APDCL to train the employees to multitask so that in case of future
automation in meter reading and billing the same employees can be engaged in other
functions.
Hon’ble Chairperson has emphasized on improving the power quality in the state of Assam
and also informed the members that AERC has formulated power quality regulation which is
available on the website.
Harsh Sutodia, Member, AIMO acknowledged the working of the power utilities during the
pandemic situation and managing the power situation efficiently during this time. He advised
APDCL in regards to ease the process of service connection to HT consumers. He mentioned
that the power supply to the industries and tea gardens of Golaghat and Tinsukia has been
unreliable during past months which will adversely affect the revenue of APDCL. In this regard,
ABITA added that the progress of work of the dedicated tea garden feeder is very slow.
Hon’ble Chairperson advised MD, APDCL to co-ordinate with ABITA to ensure early
completion of tea garden dedicated feeders so that power supply to tea gardens become
reliable.
The meeting ended with a vote of thanks from and to the Chair.
Sd/-
Secretary,
Assam Electricity Regulatory Commission
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 209
ANNEXURE-1
LIST OF MEMBERS, SPECIAL INVITEES AND OFFICERS PRESENT.
Members
1. Shri Subhash Ch.Das, IAS (Retd.), Chairperson, AERC
2. Smt. Bulbuli Borthakur, Member (Law), AERC
3. Shri Satyendra Nath Kalita, Member (Technical), AERC
4. Shri Neeraj Verma, IAS, Principal Secretary, GoA, Deptt. Of Power (Elec)
5. Shri Probin Ch Bora, Joint Secretary, Department of Food, Civil Supplies &
Consumer Affairs, GoA
6. Shri Subodh Sarma, Power Engineer
7. Shri Champak Barua, Former – Member (Technical), APDCL
8. Shri Dilip Sarma, Former Executive Director, Power Grid
9. Shri Uttpal Kr Sharma, representative from Senior Engineers Forum, Guwahati
10. Shri Abhijit Sharma, Secretary, ABITA
11. Shri Harsh Sutodiya, EC Member, AIMO, Assam
12. Shri J N Baruah, General Secretary, AASSIA, Assam
13. Shri Saurabh Agarwal, Chairperson, FINER
14. Shri Sailen Baruah, President, NESSIA
15. Shri Kumud Ch Medhi, General Secretary, NESSIA
16. Shri M P Bezbaruah, Professor, Guwahati
17. Shri A B Kandali, Associate Professor, JEC
Special Invitees
1. Sri Rakesh Agarwal, IAS, MD, APDCL
2. Shri Dhrubajyoti Hazarika, MD, AEGCL
3. Shri Balbir Singh, Sr.GM, PGCIL
4. Shri Somiran Das, Sr.DGM, PGCIL
Officers from APDCL, AEGCL & APGCL
1. Shri Chandan Sharma, CGM, SLDC, AEGCL
2. Shri Deepankar Deka, CGM (O&M), AEGCL
3. Shri P K Saikia, CGM (PP&D), AEGCL
4. Shri A K Nath, GM (HQ), AEGCL
5. Shri G K Bhuyan, GM, AEGCL
6. Shri Suresh Kaimal, DGM (F&A), AEGCL
APDCL Order for Truing-Up of FY 2019-20, APR of FY 2020-21, ARR & Tariff of FY 2021-22 Page 210
7. Shri H S Mohan, DGM, SLDC, AEGCL
8. Shri A J Choudhury, AGM (HQ), AEGCL
9. Shri Ashok Kalita, CGM (Gen), APGCL
10. Shri A Bhuyan, CGM (PP&I), APGCL
11. Shri J P Choudhury,CGM (NRE), APGCL
12. Mrs Lipika Das, AGM, APGCL
13. Mrs Pinki Deb, AM(F&A), APGCL
14. Shri Prodyut Kr Nath, JM, APGCL
15. Shri Nilmadhab Deb, AGM (F&A), APDCL