UTTAR PRADESH ELECTRICITY REGULATORY COMMISSION
LUCKNOW
Petition No. 990/2014
DETERMINATION OF AGGREGATE REVENUE REQUIREMENT (ARR) AND TARIFF FOR FY 2015-16
AND
TRUE-UP OF ARR AND REVENUE FOR THE FINANCIAL YEAR FY 2012-13
FOR
PURVANCHAL VIDYUT VITRAN NIGAM LIMITED
ORDER UNDER SECTION 62 & 64 OF
THE ELECTRICITY ACT, 2003
June 18, 2015
Determination of ARR and Tariff of PuVVNL for FY 2015-16 and True-up of FY 2012-13
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TABLE OF CONTENTS
1. BACKGROUND AND BRIEF HISTORY ............................................................................................................ 12
1.1 BACKGROUND: ................................................................................................................................ 12
1.2 DISTRIBUTION TARIFF REGULATIONS: ............................................................................................. 13
2. PROCEDURAL HISTORY ................................................................................................................................ 15
2.1 ARR / TARIFF AND TRUE UP PETITION BY THE LICENSEE .................................................................. 15
2.2 PRELIMINARY SCRUTINY OF THE PETITION:..................................................................................... 15
2.3 ADMITTANCE OF THE TRUE-UP AND ARR / TARIFF PETITION .......................................................... 16
2.4 PUBLICITY OF THE PETITION ............................................................................................................ 17
2.5 PUBLIC HEARING PROCESS .............................................................................................................. 17
3. PUBLIC HEARING PROCESS .......................................................................................................................... 18
3.1 OBJECTIVE: ...................................................................................................................................... 18
3.2 PUBLIC HEARING: ............................................................................................................................ 18
3.3 VIEWS / COMMENTS / SUGGESTIONS / OBJECTIONS / REPRESENTATIONS ON TRUE-UP / ARR /
TARIFF PETITION ....................................................................................................................................... 19
3.4 TIME OF DAY TARIFF ........................................................................................................................ 20
3.5 REGULATORY SURCHARGE .............................................................................................................. 25
3.6 LOAD FACTOR REBATE ..................................................................................................................... 28
3.7 KVAH BILLING .................................................................................................................................. 29
3.8 TARIFF HIKE ..................................................................................................................................... 30
3.9 SINGLE POINT BULK SUPPLY ............................................................................................................ 34
3.10 T&D LOSSES AND AT&C LOSSES .................................................................................................. 37
3.11 PRE-PAID METERING .................................................................................................................. 47
3.12 TARIFF REVISION FOR LMV-1 CATEGORY .................................................................................... 48
3.13 TARIFF FOR LMV-10 CATEGORY .................................................................................................. 50
3.14 QUALITY OF POWER AND ROSTERING ........................................................................................ 52
3.15 COMPLAINCE OF DIRECTIVES...................................................................................................... 54
3.16 MINIMUM CONSUMPTION CHARGES ........................................................................................ 56
3.17 FIXED CHARGES AND ENERGY CHARGES ..................................................................................... 58
3.18 ELECTRICITY DUTY AND SECURITY DEPOSIT ................................................................................ 62
Determination of ARR and Tariff of PuVVNL for FY 2015-16 and True-up of FY 2012-13
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3.19 HIGH COST OF POWER PURCHASE .............................................................................................. 63
3.20 TARIFF FOR TAJ TRAPEZIUM ZONE .............................................................................................. 66
3.21 RECOVERY OF ARREARS .............................................................................................................. 67
3.22 METERING AND BILLING ............................................................................................................. 69
3.23 REDUCED SUPPLY HOURS ........................................................................................................... 78
3.24 OPEN ACCESS .............................................................................................................................. 79
3.25 AUDIT OF ACCOUNTS .................................................................................................................. 80
3.26 CROSS SUBSIDY AND CROSS SUBSIDY SURCHARGE .................................................................... 81
3.27 TARIFF FOR TELECOM TOWERS .................................................................................................. 82
3.28 TARIFF STRUCTURE ..................................................................................................................... 85
3.29 PUBLIC PARTICIPATION .............................................................................................................. 86
3.30 SUB STATION CAPACITY .............................................................................................................. 87
3.31 ENCOURAGING RENEWABLE ENERGY ........................................................................................ 88
3.32 OTHER GENERAL ISSUES ............................................................................................................. 89
4. TRUING UP OF AGGREGATE REVENUE REQUIREMENT FOR FY 2012-13 ..................................................... 92
4.1 INTRODUCTION ............................................................................................................................... 92
4.2 POWER PURCHASE EXPENSES ......................................................................................................... 92
4.3 TRANSMISSION CHARGES................................................................................................................ 98
4.4 O&M EXPENSES ............................................................................................................................... 99
4.5 INTEREST AND FINANCE CHARGES ................................................................................................ 103
4.6 DEPRECIATION .............................................................................................................................. 110
4.7 PRIOR PERIOD EXPENSES ............................................................................................................... 112
4.8 PROVISION FOR BAD AND DOUBTFUL DEBTS ................................................................................ 114
4.9 RETURN ON EQUITY ....................................................................................................................... 117
4.10 REVENUE SUBSIDY FROM GOUP ............................................................................................... 117
4.11 ADDITIONAL SUSBIDY REQUIREMENT ...................................................................................... 117
4.12 REVENUE SIDE TRUING UP ........................................................................................................ 119
4.13 REVENUE FROM SALE OF POWER ............................................................................................. 120
4.14 ARR AND REVENUE GAP/ (SURPLUS) FOR FY 2012-13 AFTER TRUING UP ................................. 121
5. ANNUAL REVENUE REQUIREMENT FOR 2015-16 ...................................................................................... 123
Determination of ARR and Tariff of PuVVNL for FY 2015-16 and True-up of FY 2012-13
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5.1 INTRODUCTION ............................................................................................................................. 123
5.2 CONSUMPTION PARAMETERS: CONSUMER NUMBERS, CONNECTED LOAD, SALES ..................... 123
5.3 DISTRIBUTION LOSSES AND ENERGY BALANCE ............................................................................. 142
5.4 ENERGY AVAILABILITY ................................................................................................................... 149
