Before the MAHARASHTRA ELECTRICITY REGULATORY COMMISSION World Trade Centre, Centre No.

1, 13thFloor, Cuffe Parade, Mumbai- 400005. Tel. 022 22163964/65/69 Fax 22163976 Email: mercindia@mercindia.org.in Website: www.mercindia.org.in/www.merc.gov.in

Case No. 9 of 2013 IN THE MATTER OF Petition filed by Reliance Infrastructure Limited – Distribution (RInfra-D) seeking approval of Aggregate Revenue Requirement (ARR) and determination of Multi Year Tariff for Second Control Period (FY 2012-13 to FY 2015-16) Shri V.P. Raja, Chairman Shri Vijay L. Sonavane, Member

Reliance Infrastructure Limited (RInfra), H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Navi Mumbai- 400 710

….. Petitioner

ORDER Date: 22 August, 2013

In accordance with Regulation 7.1 and Regulation 8 of the Maharashtra Electricity Regulatory Commission (Multi Year Tariff) Regulations, 2011(hereinafter referred to as “ MERC MYT Regulations, 2011” or “MYT Regulations”) and upon the directions from the Maharashtra Electricity Regulatory Commission (hereinafter referred to as “the Commission”) in its Order in Case No. 158 of 2011 dated 23 November, 2012 (Order on RInfra-D’s Business Plan for the second Control Period from FY 2011-12 to FY 2015-16), Reliance Infrastructure Limited – Distribution (hereinafter referred to as “RInfra-D” or “the Petitioner”), submitted its Petition

Case No.9 of 2013

MERC Order for RInfra-D for MYT for Second Control Period

dated 29 January, 2013 for approval of Aggregate Revenue Requirement (ARR) and determination of Multi Year Tariff for Second Control Period from FY 2012-13 to FY 2015-16. The Commission, in exercise of the powers vested in it under Section 86, Section 62 (read with Section 61) of the Electricity Act, 2003 (hereinafter referred to as the Act or the EA, 2003) and all other powers enabling it in this behalf, and after taking into consideration all the submissions made by RInfra-D, issues raised during the Public Hearing and all other relevant material, issues the following Order:

Page 2 of 302

Case No.9 of 2013

MERC Order for RInfra-D for MYT for Second Control Period

TABLE OF CONTENTS

1. 1.1 1.2 1.3 1.4 2. 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 3.

BACKGROUND AND SALIENT FEATURES OF THE ORDER --------------------------------------------- 13 Background ---------------------------------------------------------------------------------------------------------------- 13 Technical Validation Session (TVS) ----------------------------------------------------------------------------------- 15 Admission of the Petition and Public Process ----------------------------------------------------------------------- 16 Organisation of the Order ----------------------------------------------------------------------------------------------- 17 OBJECTIONS, RINFRA-D’S RESPONSE AND COMMISSION’S RULINGS ---------------------------- 18 Tariff related suggestions------------------------------------------------------------------------------------------------ 18 Sales ------------------------------------------------------------------------------------------------------------------------- 23 Distribution Loss ---------------------------------------------------------------------------------------------------------- 25 Power Purchase Expenses ----------------------------------------------------------------------------------------------- 27 Operation and Maintenance (O&M) Expenses --------------------------------------------------------------------- 34 Capital Expenditure and Capitalisation ------------------------------------------------------------------------------ 35 Depreciation---------------------------------------------------------------------------------------------------------------- 36 Procedural Issue----------------------------------------------------------------------------------------------------------- 37 Energy Charges ----------------------------------------------------------------------------------------------------------- 38 Wheeling Charges ----------------------------------------------------------------------------------------------------- 38 Cross Subsidy Surcharge -------------------------------------------------------------------------------------------- 40 Regulatory Asset and its Recovery Mechanism ----------------------------------------------------------------- 42 Distribution License related issues --------------------------------------------------------------------------------- 44 DETERMINATION OF THE ARR FOR THE CONTROL PERIOD FROM FY 2012-13 TO FY 201516-------------------------------------------------------------------------------------------------------------------------------46

3.1 Sales forecast --------------------------------------------------------------------------------------------------------------- 46 3.1.1 Approach ----------------------------------------------------------------------------------------------------------------- 46 3.1.2 Estimation of Total Sales ---------------------------------------------------------------------------------------------- 46 3.1.3 Estimation of Changeover Sales -------------------------------------------------------------------------------------- 49 3.1.4 Estimation of RInfra-D Own Sales ----------------------------------------------------------------------------------- 52 Page 3 of 302

Case No.9 of 2013
3.1.5 3.1.6

MERC Order for RInfra-D for MYT for Second Control Period

Demand Side Management (DSM) Measures ---------------------------------------------------------------------- 54 Commission’s Rulings ------------------------------------------------------------------------------------------------- 56

3.2 Distribution Losses ------------------------------------------------------------------------------------------------------- 58 3.2.1 Distribution Losses for period from FY 2012-13 to FY 2015-16 ----------------------------------------------- 58 3.2.2 Commission’s Rulings ------------------------------------------------------------------------------------------------- 60 3.3 Energy Balance and Power Purchase Requirement ---------------------------------------------------------------- 61 3.3.1 Energy Balance from FY 2012-13 to FY 2015-16 ---------------------------------------------------------------- 61 3.3.2 Commission’s Rulings ------------------------------------------------------------------------------------------------- 63 3.4 Power Procurement Plan and Expenses ------------------------------------------------------------------------------ 64 3.4.1 Estimation of Base and Peak Load ----------------------------------------------------------------------------------- 65 3.4.2 Procurement from Dahanu TPS (DTPS) ---------------------------------------------------------------------------- 67 3.4.3 Procurement from Medium term Contracts (upto FY 2013-14)------------------------------------------------- 69 3.4.4 Procurement from Vidarbha Industries Power Limited (VIPL) ------------------------------------------------- 73 3.4.5 Procurement from Renewable Sources ------------------------------------------------------------------------------ 78 3.4.6 Short Term bilateral Power Purchases ------------------------------------------------------------------------------- 87 3.5 3.6 3.7 Transmission Charges --------------------------------------------------------------------------------------------------- 92 Stand-by Charges --------------------------------------------------------------------------------------------------------- 93 SLDC Charges ------------------------------------------------------------------------------------------------------------- 95

3.8 Capital Expenditure and Capitalisation ------------------------------------------------------------------------------ 97 3.8.1 Capital Expenditure submitted by RInfra-D ------------------------------------------------------------------------ 97 3.8.2 Capitalisation Plan submitted by RInfra-D ----------------------------------------------------------------------- 101 3.8.3 Commission’s Rulings ----------------------------------------------------------------------------------------------- 103 3.9 Depreciation--------------------------------------------------------------------------------------------------------------- 106 3.9.1 Depreciation submitted by RInfra-D ------------------------------------------------------------------------------- 106 3.9.2 Commission’s Rulings ----------------------------------------------------------------------------------------------- 111 3.10 Interest on Long Term Loan Capital ----------------------------------------------------------------------------- 113 3.10.1 Interest on Long Term Loan Capital submitted by RInfra-D ---------------------------------------------- 113 3.10.2 Commission’s Rulings -------------------------------------------------------------------------------------------- 120 3.11 Return on Equity ----------------------------------------------------------------------------------------------------- 124 3.11.1 Return on Equity submitted by RInfra-D ---------------------------------------------------------------------- 124 3.11.2 Commission’s Rulings -------------------------------------------------------------------------------------------- 127 3.12 Operations and Maintenance Expenditure ---------------------------------------------------------------------- 129 3.12.1 Operations and Maintenance Expenditure -------------------------------------------------------------------- 129 3.12.2 Employee Expenses ----------------------------------------------------------------------------------------------- 133 3.12.3 Administrative and General Expenditure ---------------------------------------------------------------------- 134 3.12.4 Repairs and Maintenance Expenditure ------------------------------------------------------------------------- 134 3.12.5 Commission’s Rulings -------------------------------------------------------------------------------------------- 136 3.13 Interest on Working Capital and Security Deposits ----------------------------------------------------------- 139 Page 4 of 302

Case No.9 of 2013
3.13.1 3.13.2

MERC Order for RInfra-D for MYT for Second Control Period

RInfra-D’s Submission ------------------------------------------------------------------------------------------- 139 Commission’s Rulings -------------------------------------------------------------------------------------------- 139

3.14 Income Tax ------------------------------------------------------------------------------------------------------------ 142 3.14.1 RInfra-D’s Submissions ------------------------------------------------------------------------------------------ 142 3.14.2 Commission’s Rulings -------------------------------------------------------------------------------------------- 142 3.15 Contribution to Contingency Reserves --------------------------------------------------------------------------- 144 3.15.1 RInfra-D’s Submissions ------------------------------------------------------------------------------------------ 144 3.15.2 Commission’s Rulings -------------------------------------------------------------------------------------------- 145 3.16 Non-Tariff Income --------------------------------------------------------------------------------------------------- 145 3.16.1 RInfra-D’s Submissions ------------------------------------------------------------------------------------------ 145 3.16.2 Commission’s Rulings -------------------------------------------------------------------------------------------- 148 3.17 Income from Other Businesses ------------------------------------------------------------------------------------ 148 3.17.1 RInfra-D’s Submissions ------------------------------------------------------------------------------------------ 148 3.17.2 Commission’s Rulings -------------------------------------------------------------------------------------------- 152 3.18 Past Recovery of TPC-G -------------------------------------------------------------------------------------------- 153

3.19 Wire Availability and Supply Availability ---------------------------------------------------------------------- 153 3.19.1 Wire Availability -------------------------------------------------------------------------------------------------- 153 3.19.2 Supply Availability------------------------------------------------------------------------------------------------ 155 3.20 4. 4.1 4.2 Aggregate Revenue Requirement --------------------------------------------------------------------------------- 156 RECOVERY OF REGULATORY ASSET ------------------------------------------------------------------------- 161 Quantification of Regulatory Asset till FY 2011-12 --------------------------------------------------------------- 161 Commission’s Rulings --------------------------------------------------------------------------------------------------- 163

4.3 Regulatory Asset Recovery Mechanism ----------------------------------------------------------------------------- 164 4.3.1 Proposed Recovery Mechanism ------------------------------------------------------------------------------------ 164 4.3.2 Commission’s Rulings ----------------------------------------------------------------------------------------------- 168 5. TARIFF PHILOSOPHY ----------------------------------------------------------------------------------------------- 173

5.1 Wheeling Charges and Wheeling Losses ---------------------------------------------------------------------------- 173 5.1.1 RInfra-D submission on Wheeling Charges ---------------------------------------------------------------------- 173 5.1.2 Commission’s Rulings ----------------------------------------------------------------------------------------------- 174 5.2 Cross Subsidy Surcharge ----------------------------------------------------------------------------------------------- 175 5.2.1 RInfra-D’s Submissions ---------------------------------------------------------------------------------------------- 175 5.2.2 Commission’s Rulings ----------------------------------------------------------------------------------------------- 178 5.3 Revenue Gap and Revenue requirement from retail tariff ------------------------------------------------------ 185 5.3.1 Revenue Gap at existing tariff -------------------------------------------------------------------------------------- 185 Page 5 of 302

Case No.9 of 2013
5.3.2 5.3.3 5.3.4 5.4

MERC Order for RInfra-D for MYT for Second Control Period

Commission’s Rulings ----------------------------------------------------------------------------------------------- 185 Revenue requirement to be recovered from Revised Tariffs --------------------------------------------------- 186 Commission’s Rulings ----------------------------------------------------------------------------------------------- 187

Tariff Philosophy--------------------------------------------------------------------------------------------------------- 188

5.5 Commission’s Tariff Philosophy -------------------------------------------------------------------------------------- 198 5.5.1 Tariff Design ----------------------------------------------------------------------------------------------------------- 198 5.5.2 Ceiling Tariff ---------------------------------------------------------------------------------------------------------- 200 5.5.3 Rationalisation of Tariff Categories/Consumption Slabs ------------------------------------------------------- 203 5.5.4 Fuel Adjustment Charges -------------------------------------------------------------------------------------------- 207 5.5.5 Cross-Subsidy Reduction Trajectory ------------------------------------------------------------------------------ 209 5.6 5.7 5.8 REVISED TARIFFS WITH EFFECT FROM 1 September, 2013 (for FY 2013-14) ----------------------- 212 REVISED TARIFFS WITH EFFECT FROM 1 APRIL, 2014 (for FY 2014-15) --------------------------- 216 REVISED TARIFFS WITH EFFECT FROM 1 APRIL, 2015 (for FY 2015-16) --------------------------- 219

5.9 INCENTIVES AND DISINCENTIVES ----------------------------------------------------------------------------- 222 5.9.1 Power Factor Incentive (Applicable for all HT categories, and LT II (B), LT II (C), and LT IV categories) ------------------------------------------------------------------------------------------------------------------------- 222 5.9.2 Power Factor Penalty (Applicable for all HT categories, and LT II (B), LT II (C), and LT IV categories) 222 5.9.3 Prompt Payment Discount ------------------------------------------------------------------------------------------- 223 5.9.4 Delayed Payment Charges (DPC) ---------------------------------------------------------------------------------- 224 5.9.5 Rate of Interest on Arrears ------------------------------------------------------------------------------------------- 224 5.9.6 Load Factor Incentive ------------------------------------------------------------------------------------------------ 224 5.10 APPLICABILITY OF THE ORDER ---------------------------------------------------------------------------- 225

Page 6 of 302

...................Case No... 48 TABLE 3: ADDITIONAL CHANGEOVER OVER CONSUMERS AS SUBMITTED BY RINFRA-D .. 53 TABLE 6: ENERGY SAVINGS (MU) THOUGH DSM ACTIVITIES AS SUBMITTED BY RINFRA-D .................. 160 OF 2012 AS SUBMITTED BY RINFRA-D (IN RS.............................................................. 81 TABLE 35: NON SOLAR OBLIGATION AS SUBMITTED BY RINFRA-D (MU) .......................................................................... 85 TABLE 41 NON-SOLAR POWER PURCHASE AS APPROVED BY THE COMMISSION ............................................................................................... 54 TABLE 7: OWN SALES AS PROJECTED BY RINFRA-D (CONSIDERING IMPACT OF DSM) (MUS) ......... 83 TABLE 40 SOLAR POWER PURCHASE APPROVED BY THE COMMISSION FOR THE SECOND CONTROL PERIOD ....................... 64 TABLE 20: BASE AND PEAK LOAD ESTIMATION AND ADDITIONAL CAPACITY REQUIREMENT FOR ................ CRORE) AS SUBMITTED BY RINFRA-D ............................ CR) ... 60 TABLE 12: DISTRIBUTION LOSS REDUCTION TRAJECTORY APPROVED BY THE COMMISSION IN CASE NO........................ 81 TABLE 34: SOLAR POWER COST SUMMARY AS SUBMITTED BY RINFRA-D FOR THE SECOND CONTROL PERIOD ................................................................... ABHIJEET AND VIPL ............................ 50 TABLE 4: CHANGEOVER SALES AS PROJECTED BY RINFRA-D (MU) .................. 82 TABLE 38: QUANTUM AND COST OF NON.............................. 72 TABLE 27 POWER PURCHASE COST AS APPROVED FOR WPCL....................................... 61 TABLE 14: IMPACT OF APPEAL NO....................... 68 TABLE 22: COST OF POWER PURCHASE FROM DTPS AS SUBMITTED BY RINFRA-D ........................................................................................................... 55 TABLE 8: OWN SALES APPROVED BY THE COMMISSION (CONSIDERING IMPACT OF DSM) (IN MUS) ............... 85 TABLE 42 PURCHASE OF NON-SOLAR RECS APPROVED BY THE COMMISSION FOR FY 2012-13 TO FY 2015-16 ................... 47 TABLE 2: TOTAL SALES AS PROJECTED BY RINFRA-D OF CONSUMER CONNECTED TO ITS DISTRIBUTION SYSTEM (MU) ..................................................................................................... 51 TABLE 5: OWN SALES AS PROJECTED BY RINFRA-D (WITHOUT CONSIDERING IMPACT OF DSM) (MUS) ......................... 59 TABLE 11: DISTRIBUTION LOSS TRAJECTORY AS SUBMITTED BY RINFRA-D FOR THE 2ND CONTROL PERIOD ............................................................. 73 TABLE 28: POWER PURCHASE QUANTUM FROM VIPL FOR FY 15 & FY 16 AS SUBMITTED BY RINFRA-D .............................................. 75 TABLE 30 POWER PURCHASE FROM VIPL FOR FY 2014-15 TO FY 2015-16 ...... 75 TABLE 29: POWER PROCUREMENT COST FROM VIPL FOR FY 15 & FY 16 AS SUBMITTED BY RINFRA-D ................... 61 TABLE 15: ENERGY BALANCE FOR SECOND CONTROL PERIOD (MU) AS SUBMITTED BY RINFRA-D ................................ 83 TABLE 39: DISCOUNT CLAUSE BY VARIOUS RES GENERATORS AS SUBMITTED BY RINFRA-D ............. 78 TABLE 31: SOLAR RPO REQUIREMENT AS SUBMITTED BY RINFRA-D ......... 69 TABLE 24: ENERGY AVAILABILITY FROM EXISTING MEDIUM TERM CONTRACTS (MU) AS SUBMITTED BY RINFRA-D 70 TABLE 25: TARIFF RATES FOR MEDIUM TERM CONTRACTS AS SUBMITTED BY RINFRA-D .................................... 82 TABLE 37: POWER PURCHASE RATE WITH EXISTING NON SOLAR CONTRACTS AS SUBMITTED BY RINFRA-D (RS/KWH) ......................................................................................................................... 58 TABLE 10: ACTUAL DISTRIBUTION LOSS OF FY12 AS SUBMITTED BY RINFRA-D ............................................................................................................................................................ 56 TABLE 9: CHANGEOVER SALES APPROVED BY THE COMMISSION IN CASE 179 OF 2011 (IN MU) ..... 87 Page 7 of 302 ............................................... 72 TABLE 26: COST OF POWER PROCUREMENT FROM MEDIUM TERM CONTRACTS (RS....... 63 TABLE 18: ENERGY BALANCE APPROVED BY THE COMMISSION (MU) .......................................................9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period List of Tables TABLE 1: TOTAL SALES CAGR ............................... 82 TABLE 36: EXISTING NON SOLAR CONTRACTS AS SUBMITTED BY RINFRA-D (MU) .................................................................................. 66 TABLE 21: ENERGY AVAILABILITY FROM DTPS AS SUBMITTED BY RINFRA-D.......................................SOLAR REC PROCUREMENT AS SUBMITTED BY RINFRA-D ..................... 62 TABLE 16: POWER PURCHASE REQUIREMENT FOR SECOND CONTROL PERIOD (MU) AS SUBMITTED BY RINFRA-D.................. 80 TABLE 33: ACTUAL MONTH-WISE GENERATION FROM DSSPL AS SUBMITTED BY RINFRA-D ..................................................... 158 OF 201160 TABLE 13: DISTRIBUTION LOSS TRAJECTORY APPROVED BY THE COMMISSION FOR THE 2ND CONTROL PERIOD ... 62 TABLE 17: INSTS TRANSMISSION LOSSES AS PER MSLDC WEBSITE (%) .................................................................CATEGORY WISE TOTAL SALES (%) AS SUBMITTED BY RINFRA-D .............. 79 TABLE 32: CUMULATIVE SHORTFALL IN SOLAR RPO IN FY 11 AND FY 12 AS SUBMITTED BY RINFRA-D ..................................... 64 TABLE 19: ENERGY REQUIREMENT APPROVED BY THE COMMISSION (MU) .................................... 68 TABLE 23 POWER PURCHASE FROM RINFRA-G FOR FY 2012-13 TO FY 2015-16 .........................................................................

............................................................................... CR) ..................................... 96 TABLE 58: SUMMARY OF POWER PURCHASE REQUIREMENT AS APPROVED BY THE COMMISSION (MU) ............................................ 97 TABLE 60: CAPEX-RETAIL SUPPLY BUSINESS AS SUBMITTED BY RINFRA-D (RS..... 110 TABLE 73: DEPRECIATION FOR WIRE BUSINESS AS SUBMITTED BY RINFRA-D (RS. CR) .Case No....................... CR) ............................................................................. 95 TABLE 57: SUMMARY OF POWER PURCHASE COST AS SUBMITTED BY RINFRA-D (RS... 115 TABLE 79: SUMMARY OF INTEREST EXPENSES FOR EXISTING LOANS FOR RETAIL SUPPLY BUSINESS AS SUBMITTED BY RINFRA-D (RS............................................................................................................................................ 113 TABLE 78: LOAN SCHEDULE AS SUBMITTED BY RINFRA-D (RS.................................................................... 101 TABLE 64: CAPITALISATION PLAN FOR WIRES BUSINESS AS SUBMITTED BY RINFRA-D (RS................................................................. 113 TABLE 77: TOTAL DEPRECIATION AS APPROVED BY THE COMMISSION FOR THE SECOND CONTROL PERIOD (RS......................................... 106 TABLE 71: DEPRECIATION RATES AS SUBMITTED BY RINFRA-D (AFTER CROSSING 70% THRESHOLD) ........................................................................................... 105 TABLE 70: ADDITIONAL SCHEMES APPROVED POST ISSUANCE OF BUSINESS PLAN ORDER AND PRE SUBMISSION OF MYT PETITION (RS.................... CR) ......... CR) ...... 102 TABLE 65: SUMMARY OF CAPITALISATION (WIRE & RETAIL) AS SUBMITTED BY RINFRA-D (RS........................ CR) ............................................................... CR)..................................................... 94 TABLE 53 STANDBY CHARGES AS APPROVED BY THE COMMISSION FOR RINFRA-D............................. 95 TABLE 56: SUMMARY OF POWER PURCHASE REQUIREMENT AS SUBMITTED BY RINFRA-D (MU) ................................................................................................................................................................ 118 Page 8 of 302 .............................................. CR) ........ CR) ............................. CR) .......................................................................................... 102 TABLE 66: COMPARISON OF CAPITALISATION AS APPROVED BY THE COMMISSION IN BUSINESS PLAN AND AS SUBMITTED BY RINFRA-D IN MYT PETITION (RS....... 117 TABLE 81: SUMMARY OF INTEREST EXPENSES FOR NEW LOANS FOR WIRES BUSINESS AS SUBMITTED BY RINFRA-D (RS........................................................................................................................).... 90 TABLE 46 ACTUAL SHORT-TERM POWER PURCHASE DURING FY 2011-12 ................................... CR) ....................... 91 TABLE 49 SALE OF SURPLUS POWER AS APPROVED BY THE COMMISSION FOR RINFRA-D ......... 92 TABLE 50: TRANSMISSION CHARGES FOR THE SECOND CONTROL PERIOD AS SUBMITTED BY RINFRA-D (RS................... 111 TABLE 75: DEPRECIATION FOR WIRES BUSINESS AS APPROVED BY THE COMMISSION (RS... CR) .................................... 91 TABLE 48 SHORT-TERM POWER PURCHASE APPROVED BY THE COMMISSION ...... 92 TABLE 51 TRANSMISSION CHARGES PAYABLE BY RINFRA-D AS APPROVED BY THE COMMISSION .................... 100 TABLE 61: CAPEX-WIRES BUSINESS AS SUBMITTED BY RINFRA-D (RS........ 103 TABLE 67: CAPITALISATION PLAN FOR WIRE BUSINESS AS APPROVED BY THE COMMISSION (RS........................... 89 TABLE 45: QUANTUM AND RATE OF SURPLUS POWER SALE PROJECTED BY RINFRA-D ......................... 100 TABLE 62: SUMMARY OF CAPEX (WIRE & RETAIL) AS SUBMITTED BY RINFRA-D (RS.................................... CR).......... CR) ......... CR) ....... CR) .. CR.......................................................... 107 TABLE 72: DEPRECIATION FOR RETAIL SUPPLY BUSINESS AS SUBMITTED BY RINFRA-D (RS.............. 95 TABLE 55: SLDC FEES AND CHARGES AS APPROVED BY THE COMMISSION FOR RINFRA-D ............................................... 94 TABLE 54: SLDC CHARGES FOR THE SECOND CONTROL PERIOD AS SUBMITTED BY RINFRA-D (RS....................................... 96 TABLE 59: SUMMARY OF POWER PURCHASE COST AS APPROVED BY THE COMMISSION (RS............................................... 104 TABLE 68: CAPITALISATION PLAN FOR RETAIL SUPPLY BUSINESS AS APPROVED BY THE COMMISSION (RS...................................... CR...... CR) ................... CR) ........... 117 TABLE 80: SUMMARY OF INTEREST EXPENSES FOR EXISTING LOANS FOR WIRES BUSINESS AS SUBMITTED BY RINFRAD (RS.......................... 101 TABLE 63: CAPITALISATION PLAN FOR RETAIL SUPPLY BUSINESS AS SUBMITTED BY RINFRA-D (RS............................................................................ 104 TABLE 69: VARIATION IN CAPITALISATION AS APPROVED BY THE COMMISSION IN BUSINESS PLAN ORDER AND AS SUBMITTED BY RINFRA-D (RS........ 90 TABLE 47 PURCHASE FROM SHORT-TERM SOURCES BY RINFRA-D (MU) .......... CRORE) .......9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period TABLE 43: ANNUAL HOUR WISE DEFICIT AND SURPLUS AS SUBMITTED BY RINFRA-D (MU) .....) .............. CR) .............................................. CR) ................................................. CR) .......................................... 93 TABLE 52: STANDBY CHARGES FOR THE SECOND CONTROL PERIOD AS SUBMITTED BY RINFRA-D (RS..... 110 TABLE 74: COMPARISON OF DEPRECIATION AS APPROVED BY THE COMMISSION IN BUSINESS PLAN AND AS SUBMITTED BY RINFRA-D IN MYT PETITION (RS.. CR) ............. 87 TABLE 44: QUANTUM AND RATE OF SHORT TERM POWER PROCUREMENT AS PROJECTED BY RINFRA-D ........................................................................................................... CR) .. 112 TABLE 76: DEPRECIATION FOR RETAIL SUPPLY BUSINESS AS APPROVED BY THE COMMISSION (RS........

......... 135 TABLE 96: SUMMARY OF INDICES USED BY RINFRA-D TO PROJECT O&M EXPENSES ............................................................................................................................... 119 TABLE 84: COMPARISON OF INTEREST EXPENSES AS APPROVED BY THE COMMISSION IN BUSINESS PLAN ORDER AND AS SUBMITTED BY RINFRA-D IN MYT PETITION (RS...... 141 TABLE 100: INCOME TAX PROJECTIONS AS SUBMITTED BY RINFRA-D (RS.......................................................................... 156 TABLE 114: AGGREGATE REVENUE REQUIREMENT SUBMITTED BY RINFRA-D.......... CRORE) .... 123 TABLE 87: RETURN ON EQUITY FOR WIRES BUSINESS AS SUBMITTED BY RINFRA-D (RS................................................................................................ 147 TABLE 106:NON-TARIFF INCOME AS SUBMITTED BY RINFRA-D FOR RETAIL SUPPLY (RS.............. 147 TABLE 108:NON-TARIFF INCOME APPROVED BY THE COMMISSION FOR RETAIL SUPPLY (RS........... CRORE) ............................................................... 142 TABLE 101: INCOME TAX APPROVED BY THE COMMISSION (IN RS..... 148 TABLE 109: NON-TARIFF INCOME APPROVED BY THE COMMISSION FOR WIRES BUSINESS (RS.........................................RETAIL SUPPLY BUSINESS (RS.................................... CRORE) .....WIRES BUSINESS (RS...................................................................RETAIL SUPPLY BUSINESS (RS.............................................................. CR) ............................. 118 TABLE 83: SUMMARY OF TOTAL INTEREST EXPENSES FOR WIRES & RETAIL BUSINESS AS SUBMITTED BY RINFRA-D (RS............... 148 TABLE 110: INCOME FROM DEVIDAS LANE OFFICE AS SUBMITTED BY RINFRA-D .. RS................................... 158 TABLE 116: AGGREGATE REVENUE REQUIREMENT APPROVED BY THE COMMISSION................................................. 152 TABLE 113: AGGREGATE REVENUE REQUIREMENT SUBMITTED BY RINFRA-D........................................................9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period TABLE 82: SUMMARY OF INTEREST EXPENSES FOR NEW LOANS FOR RETAIL SUPPLY BUSINESS AS SUBMITTED BY RINFRA-D (RS...... 127 TABLE 91: RETURN ON EQUITY AS APPROVED BY THE COMMISSION FOR THE SECOND CONTROL PERIOD OF THE MYT PERIOD............................... 128 TABLE 92: COMPARISON OF O&M EXPENSES AS SUBMITTED BY RINFRA-D ......................................... 158 TABLE 117: AGGREGATE REVENUE REQUIREMENT APPROVED BY THE COMMISSION................ CRORE) ................. CRORE) ................................................................... CRORE) .................................... CR) ........................................................ CR) .... 123 TABLE 86: INTEREST EXPENSES ON LONG TERMS LOANS FOR THE MYT PERIOD AS APPROVED BY THE COMMISSION (IN RS.......................... 145 TABLE 104: CONTRIBUTION TO CONTINGENCY RESERVE APPROVED BY THE COMMISSION (RS......................................................................................................... CRORE) ..................................... 152 TABLE 112: INCOME FROM OTHER BUSINESS APPROVED BY THE COMMISSION (RS............................................................................................... CRORE) ... 149 TABLE 111: INCOME FROM OTHER BUSINESS AS SUBMITTED BY RINFRA-D (RS................................................................................................... 130 TABLE 93: SUMMARY OF EMPLOYEE EXPENSES AS SUBMITTED BY RINFRA-D (RS................ 139 TABLE 99: INTEREST ON WORKING CAPITAL FOR WIRE & RETAIL SUPPLY BUSINESS APPROVED BY THE COMMISSION (RS............ 134 TABLE 94: SUMMARY OF A&G EXPENSES AS SUBMITTED BY RINFRA-D (RS................... CR). CR) .......... CR) ............... CRORE) .................................... RS............................................................. 159 Page 9 of 302 ............................................ 125 TABLE 88: RETURN ON EQUITY FOR RETAIL SUPPLY BUSINESS AS SUBMITTED BY RINFRA-D (RS.......... CR) ......................................................................................................... 143 TABLE 102: CONTRIBUTION TO CONTINGENCY RESERVES AS SUBMITTED BY RINFRA-D (WIRES. 144 TABLE 103: CONTRIBUTION TO CONTINGENCY RESERVE AS SUBMITTED BY RINFRA-D (RETAIL......................... CR) ......................................... 147 TABLE 107: NON-TARIFF INCOME AS SUBMITTED BY RINFRA-D FOR WIRES BUSINESS (RS.......... 119 TABLE 85: WEIGHTED AVERAGE INTEREST RATE OF RINFRA AS COMPUTED BY THE COMMISSION .................................................................................................................................................................................... 138 TABLE 98: INTEREST ON WORKING CAPITAL AND SECURITY DEPOSIT FOR WIRE & RETAIL SUPPLY BUSINESS AS SUBMITTED BY RINFRA-D (RS................................... CR)............................................................................... CRORE) .........Case No.... 135 TABLE 97: O&M EXPENSES APPROVED BY THE COMMISSION (RS CRORE) ........................ CRORE) ........................ 134 TABLE 95: SUMMARY OF R&M EXPENSES AS SUBMITTED BY RINFRA-D (RS... 145 TABLE 105: ACTUAL RECOVERY FROM THEFT OF POWER FOR FY 13 TILL JANUARY 2013 AS SUBMITTED BY RINFRA-D .................................................................................................................. CRORE) ......................... 157 TABLE 115: TOTAL AGGREGATE REVENUE REQUIREMENT SUBMITTED BY RINFRA-D............. CR) ......................... CRORE) ...................................................... CRORE) ............................... CR) ................................................. CR) ...... 126 TABLE 90: COMPARISON OF ROE AS APPROVED BY THE COMMISSION IN BUSINESS PLAN AND AS SUBMITTED BY RINFRA-D IN MYT PETITION (RS...............(RETAIL SUPPLY +WIRES) BUSINESS (RS................................................... 126 TABLE 89: RETURN ON EQUITY FOR WIRES AND RETAIL BUSINESS AS SUBMITTED BY RINFRA-D (RS.......... CRORE) .. CRORE) ... CRORE) ................................................WIRES BUSINESS (RS..................

.................................................................................................................................................................................................................................................................................................................. 181 TABLE 137: APPROVED CSS FOR FY 2014-15(RS/KWH) ................................................................... 177 TABLE 131: WHEELING CHARGES FOR CSS CALCULATIONS AS SUBMITTED BY RINFRA-D............................... 174 TABLE 129: MARGINAL POWER PURCHASE COST PER UNIT FOR CSS CALCULATIONS AS SUBMITTED BY RINFRA-D (RS...... 170 TABLE 126: EXISTING WHEELING CHARGES AS SUBMITTED BY RINFRA-D ...................................... 190 TABLE 146: NET REVENUE REQUIREMENT AND NORMALISED RECOVERY FOR THE SECOND CONTROL PERIOD AT EXISTING TARIFF APPROVED BY THE COMMISSION EXCLUDING REGULATORY ASSET RECOVERY (RS CRORE) 198 TABLE 147: NET REVENUE REQUIREMENT AND NORMALISED RECOVERY FOR THE SECOND CONTROL PERIOD AT EXISTING TARIFF APPROVED BY THE COMMISSION INCLUDING REGULATORY ASSET RECOVERY (RS CRORE) ............................ 187 TABLE 143: NET REVENUE REQUIREMENT AND NORMALISED RECOVERY FOR THE SECOND CONTROL PERIOD AT EXISTING TARIFF APPROVED BY THE COMMISSION (RS CRORE) ..................................... 185 TABLE 140: REVENUE GAP FOR FY 2012-13 APPROVED BY THE COMMISSION (RS CRORE)................................... 181 TABLE 136: APPROVED CSS FOR FY 2013-14(RS/KWH) ............................................................................................................................................................................................. 180 TABLE 134: SYSTEM LOSSES FOR CSS CALCULATIONS APPROVED BY THE COMMISSION (%) ........................................................................ 169 TABLE 125: REGULATORY ASSET CHARGE APPROVED BY THE COMMISSION (RS/KWH) ............................................ 176 TABLE 130: SYSTEM LOSSES FOR CSS CALCULATIONS AS SUBMITTED BY RINFRA-D.............. CRORE) .............................. 180 TABLE 135: WHEELING CHARGES FOR CSS CALCULATIONS AS APPROVED BY THE COMMISSION (RS/KWH) ..................... 173 TABLE 128: WHEELING CHARGES APPROVED BY THE COMMISSION FOR SECOND CONTROL PERIOD (RS CRORE) .... 173 TABLE 127: WHEELING CHARGES AS PROPOSED BY RINFRA-D FOR THE REMAINING PART OF SECOND CONTROL PERIOD.......................................... 164 TABLE 121: BIFURCATION OF REGULATORY ASSET TO OWN AND CHANGEOVER CONSUMERS AS SUBMITTED BY RINFRA-D ........................................................................ 160 TABLE 119: CUMULATIVE REVENUE GAP WITH CARRYING COST TILL FY 2011-12 AS SUBMITTED BY RINFRA-D (RS........Case No....... /KWH) FOR THE SECOND CONTROL PERIOD AS SUBMITTED BY RINFRA-D ................................................................................................................................................................................................ 199 Page 10 of 302 .............................................................................................................................. 162 TABLE 120: CUMULATIVE REGULATORY ASSET WITH CARRYING COST TILL FY 2011-12 AS APPROVED BY THE COMMISSION (RS................................................................ 189 TABLE 145: DEMAND CHARGES AS SUBMITTED BY RINFRA-D (RS/ KVA/ MONTH).................................................. /KWH) ............................ 177 TABLE 132: CSS (RS................................ 183 TABLE 139: REVENUE GAP FOR FY 2012-13 AS SUBMITTED BY RINFRA-D (RS CRORE) ......... 186 TABLE 142: REVENUE GAP FOR THE SECOND CONTROL PERIOD AT EXISTING TARIFF APPROVED BY THE COMMISSION (RS CRORE) ............................................ 188 TABLE 144: FIXED CHARGES AS SUBMITTED BY RINFRA-D (RS/ CONSUMER/ MONTH) ..........9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period TABLE 118: TOTAL AGGREGATE REVENUE REQUIREMENT APPROVED BY THE COMMISSION.... CRORE) ...(RETAIL SUPPLY +WIRES) BUSINESS (RS................................................................. 186 TABLE 141: NET REVENUE REQUIREMENT FOR THE SECOND CONTROL PERIOD FROM RINFRA-D CONSUMERS AS SUBMITTED BY RINFRA-D (RS CRORE) .............................................................. CRORE) ...... 182 TABLE 138: APPROVED CSS FOR FY 2015-16 (RS/KWH) ......... 166 TABLE 124: REGULATORY ASSET CHARGE APPROVED BY THE COMMISSION (RS CRORE) ............................ 165 TABLE 123: DETERMINATION OF REGULATORY ASSET CHARGE FOR CHANGEOVER SUBMITTED BY RINFRA-D .......................................................................... 164 TABLE 122: REGULATORY ASSET RECOVERY FOR OWN CONSUMERS AS SUBMITTED BY RINFRA-D ...................................................... 177 TABLE 133: MARGINAL COST OF POWER PURCHASE BY RINFRA-D APPROVED BY THE COMMISSION (RS/KWH) ..............................................................................................................

2003 Fuel Adjustment Cost Final Balancing and Settlement Mechanism Financial Year Government of Maharashtra Gross Fixed Assets Generation.Case No. T & D HT IEGC IoWC InSTS LMC LT kVA kW kWh LCC Advance Against Depreciation Administrative and General Average Billing Rate Average Cost of Supply Annual Performance Review Aggregate Revenue Requirement Appellate Tribunal for Electricity Below Poverty Line Bilateral Power Purchase Brihanmumbai Electric Supply & Transport Undertaking Compound Annual Growth Rate Capital Expenditure Cost Benefit Analysis Central Electricity Regulatory Commission Consumer Grievance Redressal Forum Date of Commissioning Corporate Social Responsibility Cross Subsidy Surcharge Consumer Price Index Delayed Payment Charge Detailed Project Report Demand Side Management Distribution Substation Electricity Act. Transmission and Distribution High Tension Indian Electricity Grid Code Interest on Working Capital Intra State Transmission System Load Management Charges Low Tension Kilo Volt Ampere Kilo Watt Kilo Watt hour Load Control Centre Page 11 of 302 . 2003 FAC FBSM FY GoM GFA G.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period List of Abbreviations AAD A&G ABR ACOS APR ARR ATE BPL BPP BEST CAGR Capex CBA CERC CGRF COD CSR CSS CPI DPC DPR DSM DSS EA.

2010 Renewable Purchase Specification System Average Interruption Duration Index State Bank of India Advance Rate State Bank of India Prime Lending Rate State Load Despatch Centre Transmission Loss Time of Day Technical Validation Session Unscheduled Interchange Wholesale Price Index Wheeling Loss Page 12 of 302 .Case No.9 of 2013 MAT MCGM MERC MIAL MMOPL MOD MSEDCL MSLDC MU MVA MW MYT MERC Tariff Regulations MERC MYT Regulations. Mumbai Metro One Private Limited Merit Order Dispatch Maharashtra State Electricity Distribution Company Ltd. 2011 OA O&M R&M RE RAC REC RInfra RInfra-G RInfra-T RInfra-D RoE RPO RPO Regulations RPS SAIDI SBAR SBI PLR SLDC TL TOD TVS UI WPI WL MERC Order for RInfra-D for MYT for Second Control Period Minimum Alternate Tax Municipal Corporation of Greater Mumbai Maharashtra Electricity Regulatory Commission Mumbai International Airport Ltd. 2005 MERC (Multi Year Tariff) Regulations. its Compliance and implementation of REC framework) Regulations.Generation Business Reliance Infrastructure Limited.Transmission Business Reliance Infrastructure Limited. 2011 Open Access Operation and Maintenance Repair and Maintenance Renewable Energy Regulatory Asset Charge Renewable Energy Certificate Reliance Infrastructure Limited Reliance Infrastructure Limited. Maharashtra State Load Despatch Centre Million Units Mega-Volt Ampere MegaWatt Multi Year Tariff MERC (Terms and Conditions of Tariff) Regulations.Distribution Business Return on Equity Renewable Purchase Obligation MERC (Renewable Purchase Obligation.

1. 1. 2003.1 Background 1. 2003.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 1. 2005. the distribution system of RInfra-D included 5775 Nos. Regulation 85 (a) of the MERC (Conduct of Business) Regulations.1. under the terms of the Electricity Act. 1. 2011. in exercise of the powers conferred by the EA. 2004.1. 2003 (EA. 2003. 1. These Regulations superseded the MERC (Terms and Conditions of Tariff) Regulations. (hereinafter referred as the "MERC Tariff Regulations") on August 26.2 RInfra-D in this Petition submitted that it is currently catering to electricity needs of approximately 2.1.1. notified the Maharashtra Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations. 99 and 100 of the MERC Multi Year Tariff (MYT) Regulations. BACKGROUND AND SALIENT FEATURES OF THE ORDER 1. The distribution business of RInfra shall be. under Section 94 (2) of the Electricity Act.1. These Regulations are applicable for the second Control Period starting from FY 2011-12 to FY 2015-16. 2011) on 4 February. 2005. Page 13 of 302 .Case No. Transmission and Distribution of electricity in and around suburban areas of Mumbai. 2012. As on 31 March. hereafter referred to as RInfra-D. 2011. 2011. RInfra was granted a licence to distribute electricity by the Commission for a period of 25 years with effect from August 16. 2011.1 Reliance Infrastructure Limited (RInfra) is an integrated Utility engaged in Generation. and Regulations 4. 1. 4519 ckt-kms of HT cable and 4202 ckt-kms of LT cable. 2003). 45 of 2011 seeking deferment of the implementation of MYT Regulations. of 11kV Substations.1.1.1.3 The Commission.8 million consumers in its licensed area (in and around suburbs of Mumbai) spread over 400 Sq.5 RInfra-D filed a Petition before the Commission on March 25. RInfra was a deemed Distribution Licensee having a licence to distribute electricity in the suburbs of Mumbai. kms with energy input requirement of more than 9 Billion Units per annum and coincident Maximum Demand in the range of 1650 MVA.4 The Commission. 2004. 2011.1. in Case No. 2011. in exercise of the powers conferred by the EA. (hereinafter referred as the MERC MYT Regulations.1. Prior to this. notified the Maharashtra Electricity Regulatory Commission (Multi Year Tariff) Regulations.

The Commission in this amendment to the Regulations specified. 2011 in the said case. the Commission is of the view that it has become necessary to invoke the proviso to Regulation 4. 158 of 2011 dated 23 November.e. in accordance with MERC (Terms and Conditions of Tariff) Regulations. as under: “Provided in case an Order of exemption has been issued under Regulation 4.1 then the concerned Generating Company.” 1.8 The Commission vide its Order in Case No..9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 1.1. 2011. till March 31.. The Commission also directed RInfra-D to file the Petition for determination of tariff for FY2011-12 under Maharashtra Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations.Case No.” Page 14 of 302 . notified as Maharashtra Electricity Regulatory Commission (Multi Year Tariff) (First Amendment) Regulations. 2011 in order to exempt the determination of tariff of RInfra under the Multi-Year Tariff framework till March 31.1.6 The Commission vide its Order dated September 2. 2012.” 1. allowed the exemption to RInfra-D from MERC (MYT) Regulations.. the Commission hereby directs RInfra to file the Petition for determination of tariff for FY 2011-12 within 2 months time. The Commission is also empowered under Regulation 100 of the MYT Regulations. 2012 directed RInfra-D as under: “The Commission’s computations for the Business Plan of RInfra-D shall form the basis for filing the MYT Petition for the second Control Period. 2011. on or before October 31. 2005. 2011.1. Transmission Licencee or Distribution Licencee shall file annual Petitions for approval of ARR and tariff during the period of exemption. RInfra-D shall submit the MYT Petition within 60 days from the date of issuance of this Business Plan Order.1. The said exemption is hereby granted. Accordingly. 2011 for a period of 1 year.1. for a period of 1 year). i. 2012 (i.1 of MYT Regulations. on or before October 31. 2005. The relevant extract from the Order is as under: “In light of the above.e..7 The Commission amended the MYT Regulations vide its notification dated 21 October. 2011. 2011 to remove any difficulty arising in giving effect to the provisions of MYT Regulations 2011.1.

9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 1. 2013. which the Hon'ble Commission deems fit to be issued. the Commission directed RInfra-D to provide additional information and clarifications on the issues raised during the TVS and submit the revised Petition. 9 of 2013 are as under: “ 1. During the TVS. 4. 2011 RInfra-D submitted its MYT Petition dated 29 January.1. Approve the deviations from the norms prescribed in the MYT Regulations. 2. 2013 registered by the Commission as Case No. RInfra-D submitted its replies to the data gaps vide its submissions dated 11 Page 15 of 302 .2 Technical Validation Session (TVS) The Commission scrutinised the Petition of RInfra-D and directed RInfra-D to address data gaps raised before the first Technical Validation Session (TVS) held on 8 February. as proposed in this petition for the period FY2012-13 to FY2015-16. Allow any other relief. The list of persons.10 The prayers made by the Petitioner in Case No. 2012. 9 of 2013 for approval of ARR and determination of Tariff from FY 2012-13 to FY 2015-16. Allow the revision in wheeling charges and Cross-Subsidy Surcharge. 6.1. Subsequently.1. Allow additions / alterations / modifications / changes to the Petition at a future date. as contained in this Petition. held on 8 February. who participated in the TVS. 1. as sought in this Petition.9 In accordance with the above direction from the Commission and as per Regulation 8 of the MERC MYT Regulations. etc.Case No. order or direction. as may be there in the Petition. Approve the recovery of regulatory assets along with carrying cost.1. 3. ” 1. 5. Condone any inadvertent errors/ inconsistencies/omissions/rounding of differences. 7. 2013 is provided at Appendix-1. Approve the ARR forecast and Tariff & Charges for FY 2012-13 to FY 2015-16. as proposed in the petition. in the presence of authorised Consumer Representatives authorised under MERC (Authorised Consumer Representative Regulations.

 Various objections that were raised on RInfra-D’s Petition after publication of the notice both in writing as well as during the Public Hearing.in/ www.  The Commission received written objections expressing concerns on several issues.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period February 2013.com) hosted the documents in downloadable format. 12 February 2013 and 16 February 2013. etc. Bandra Reclamation.gov. along with RInfra-D’s Page 16 of 302 . contemplated under law. Adequate opportunity was given to all the persons concerned to submit their response in the matter.  The Commission has ensured that the due process.Case No. RInfra-D published Public Notices in two (2) English newspapers (Hindustan Times and Indian Express) and two (2) Marathi newspapers (Loksatta and Samana) dated 1 March. 2013 at Rang Sharda Natya Mandir. The Petition. RInfra-D's website (www. Bandra (W).mercindia.merc. RInfra-D submitted its revised Petition on 18 February. 2013 inviting suggestions and objections from stakeholders on its Petition. RInfra-D made available copies of its Petition and executive summary (in both English and Marathi version) for inspection/ purchase by members of the public at RInfra-D's offices. In accordance with Section 64 of the Act. was followed meticulously at every stage to ensure transparency and public participation. all required information for admission of the Petition. Wheeling and distribution losses.3  Admission of the Petition and Public Process The Commission admitted the Petition on 22 February.400050. Recoveries against vigilance. 1. Consumer representatives also participated actively in this process. 2013. Interest on longterm loan capital.org. Average cost of supply. including tariff of RInfra-D. and persons who participated in the public hearing. Mumbai. 2013 and vide its letter MERC/Case No. Recovery of regulatory asset. Power Purchase Expenses.in) in downloadable format. The Commission held Public hearing on RInfra-D on 6 April.rinfra. its executive summary and copy of public notice were also hosted on the website of the Commission (www. The list of objectors. is provided in Appendix-2. Further. 9 of 2013/2683 conveyed the same to RInfra-D and further directed them to publish the approved Public Notice. Consumer migration.

Case No. c) Section 3 of the Order details the RInfra-D’s submission for Second Control Period from FY 2012-13 to FY 2015-16 for ARR and Commission’s analysis. Page 17 of 302 .9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period response and the Commission’s rulings have been summarised in Section 2 of this Order. b) Section 2 of the Order summarises the various objections raised by the objectors in writing as well as during the Public Hearing held.4 Organisation of the Order A list of abbreviations with their expanded forms has been included at the beginning of this Order. 1. d) Section 4 of the Order details the Regulatory Asset of RInfra-D and its recovery mechanism. Each of the objections is followed by the response of RInfra-D and ruling of the Commission respectively. e) Section 5 of the Order discusses the tariff philosophy and submission of RInfra-D for Tariff determination and further Tariff determination by the Commission for RInfra-D for the period from FY 2012-13 to FY 2015-16. This Order is organised in the following Sections: a) Section 1 of the Order provides a brief background of the process undertaken by the Commission.

Mumbai Metro One Private Limited (MMOPL) submitted that the Commission should determine tariff applicable to MMOPL considering cost of supply rather than Average Cost of Supply. an authorised Consumer Representative in the present Case. Regulatory Asset. Shri. iv.1 Tariff related suggestions i. Page 18 of 302 . ii. Ulhas Chaudhari suggested that MMOPL should be categorized under HT-II Commercial category rather than HT-Railways category. RInfra-D’S RESPONSE AND COMMISSION’S RULINGS 2. Bharatiya Udhami Avam Upbhokta Sangh (BUAUS) represented by Shri Rakshpal Abrol.. Similar query was submitted by Mumbai Grahak Panchayat. vi. Shri George John submitted that Tariff proposed by RInfra-D will adversely affect competition. Prana Studios Pvt. were not projected in its Business Plan Petition. Wheeling Charge and CSS. and suggested that such practice of recovery from past cases should be discontinued in general in future. v.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 2. Ltd. Urja Prabodhan Kendra submitted that RInfra-D has proposed anew surcharge under the head Regulatory Asset Surcharge apart from FAC. OBJECTIONS. vii. viii. Niwara Vidyalaya submitted that there must be creation of separate category for schools run by Public Trusts. Regulatory Asset Charge and other related charges. submitted that it belongs to HT-I category and is from Animation and Visual effects Industry which is in nascent stage in India and objected to proposed increase of CSS and Regulatory Asset Charge proposed by RInfra-D in its MYT petition. Shri Abrol further inquired about maximum ceiling of tariff to be fixed by the Commission for retail supply where two or more Distribution Licensees exist. etc. He also suggested that there should not be any further increase in CSS.Case No. iii. an authorised Consumer Representative submitted that RInfra-D must clarify as to why issues of Cross Subsidy Surcharge. as estimated by RInfraD.

. Page 19 of 302 . Shri N. Franco-Indian Pharmaceuticals Pvt.. xii. 5/kWh which is less than ACoS of Rs. Shri N. Ponrathnam submitted that there should not be any levy of demand charges on LT consumers. Ponrathnam further submitted that the consumers of commercial categories (LT II-a. x. as proposed by RInfra-D. Arch-V-Shan Creations. xiii. Mahindra & Mahindra Ltd. Garima Sadan Co-op. and LT II-c) at the same voltage are charged differently and RInfra-D should explain the reason for differentiation between consumers supplied at same voltage.. Prem Co-op Society Ltd. Further. Housing Society Ltd. have also raised objection to the increase in CSS and RAC recovery. Yojna Udyog Pvt. Shri. Wheeling charges and CSS. Further.48/kWh).. Ltd. in view of two licensees supplying power in same area. Shri Arun Kadam appeared on behalf of Shri Thakur Ramesh Singh (MLA) and Shri Shantaram Karande (Maharashtra Navnirman Sena (MNS)) submitted during Public Hearing Process that Commission may relook at the Stand by charges. Kohinoor Ind. RInfra-D has proposed 115% increase in demand charges for LT consumers and further submitted that there is tariff shock to BPL category of consumers in the MYT Petition. Ltd. Shri Shirish Deshpande from Mumbai Grahak Panchayat submitted during Public Hearing Process that the Commission may like to consider the implementation of maximum ceiling tariff in Mumbai. Geoffrey Mascarenhas. Shri N. Momai Impex.. LT II-b. Indus Towers Ltd. Amar Texdys Corporation. 7.. Ponrathnam submitted that RInfra-D should provide reason for considering Mumbai Metro tariff as that of Railways (tariff is Rs... All of these objectors submitted that they are currently not a consumer of RInfra-D but still as per submissions of RInfra-D in their MYT Petition they need to pay CSS and Regulatory Asset Charge which is not justifiable. as these are on higher side and lead to tariff shock to the consumers and also submitted that there should be equalized Tariff for all Distribution Licensees. xi.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period ix. Unimark Remedies Ltd.Case No. Larsen & Toubro Ltd.

cost structure. its tariffs to high end consumers continue to be higher so as to maintain affordability of tariffs for its large mass of low end consumers. Regulatory Assets. Due to this. RInfra-D further submitted that equity has to be created through self balancing means such as Cross Subsidy Surcharge. MERC Order for RInfra-D for MYT for Second Control Period RInfra-D submitted that the power purchase cost of RInfra-D is significantly lower than TPC-D for each year of the MYT Period. hike of Wheeling Charges etc. In response to suggestion of BUAUS and Mumbai Grahak Panchayat regarding implementation of ceiling tariff. on Changeover Consumers. etc. 2013. the costplus retail tariffs of the two licensees are very different and there is a wide Page 20 of 302 . the network spread. iii.. Also. RInfraD submitted that these issues were also covered in the presentation made before the Commission during the Technical Validation Session held on February 8. RInfra-D submitted that in the present situation in the common area of supply of RInfra-D and TPC-D.9 of 2013 RInfra-D’s Response i. iv. ii. RInfra-D submitted that the Petition submitted covered all the issues mentioned above and the objector being a Consumer Representative on the direction of the Commission. consumer mix. are widely different between the two Licensees.Case No. In the reply to the query raised by BUAUS that the MYT Petition submitted vide letter reference RInfra-D/MERC/MYT FY13-16/001 was not covering the issues of Cross Subsidy Surcharges. However. since RInfra-D is saddled with a consumer mix highly skewed in favour of low end/ low paying capacity consumers. In response to BUAUS query. cross-subsidy situation. RInfra-D clarified that Business Plan submitted before the Commission was not a Tariff Petition and hence retail tariffs were not proposed therein and the tariff proposal including the CSS charges and the Regulatory Asset recovery forms part of the present MYT petition. otherwise historical legacy of consumer mix will wipe out competition and create another monopoly. a copy of the Petition was served to him.

ix. determination. RInfra-D submitted that it only recovers tariff from consumers as approved for it by the Commission.Case No. In response to Niwara Vidyalaya query regarding creation of separate category for schools run by Public Trusts.. Ltd. vi. v. i. crosssubsidisation and reduction of cross-subsidies are prerogative of the Commission and tariffs will be charged to the consumer in accordance with the tariff schedule as approved by the Commission. c) In a competitive retail supply market consumers decide which supplier they want to avail power from and such decision is not static. In response to Urja Prabodhani Kendra. Ponrathnam. RInfra-D suggested that in this situation. b) The recovery of regulatory assets is proposed to recover past accumulated deficits from the users of the network so that the burden of past liability is not passed on to the remaining consumers of RInfraD. which is also borne out of the Commission’s Order in Case No. In response to Shri.Railways tariff category in TPC-D’s Tariff Order dated 12 September. 2010 in Case No. RInfra-D submitted that the tariff categorisation. Ulhas Chaudhari. depending upon the cost economics. RInfra-D submitted that categorisation is the sole prerogative of the Commission. RInfra-D submitted that Page 21 of 302 . the determination of ceiling Tariff may not be practicable. In response to MMOPL query. 98 of 2009. but is equitably shared.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period gap between the two. vii. RInfra-D submitted that it had proposed HT-Railways tariff for Metro based on the Commission’s recognition of Metro and Mono rail under HT. In response to Shri N.. suppliers can be switched by the consumer on any number of occasions. but it is dynamic. methodology for cost of supply.e. In response to Prana Studios Pvt. x. viii. 138 of 2012. RInfra-D submitted that: a) Tariff and charges are proposed based on the presently approved methodology and in line with the principle that the CSS should reflect the currently approved level of cross-subsidy for the licensee.

The objector seems to suggest that present charges are denominated in Rs. d) MMOPL has laid its own 33kV cable and associated infrastructure from the outgoing side of the RInfra’s transmission substation located at Aarey. Commission’s Rulings The Commission has noted the suggestion and objections submitted by consumers and Consumer Representatives and also their replies submitted by RInfra-D.Case No. voltage is not the only factor to be considered for tariff determination. /kVA it becomes Rs. e) With regards to differentiation between consumers supplied at same voltage. Metro Rail is also a form of Railways and hence tariff for supply to Metro is proposed considering the existing tariff to railways in Mumbai area. 150/kVA/month to Rs. 97. RInfra-D submitted that tariff determination and categorisation is a prerogative of the Commission. 2011 and was not a Tariff Petition and Page 22 of 302 . 210/kVA/month. However. Further. c) There is no tariff shock for BPL consumers in the present MYT Petition. To make any change in tariff structure or its applicability is the prerogative of the Commission. b) The demand charges for LT categories are proposed to increase from Rs. RInfra-D recognises the need to reduce the differentiation and has attempted to do so in its Petition by reducing the cross-subsidy contribution of LTII (b) and LT II (c) categories.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period a) It is only charging tariffs as approved by the Commission. /kW and hence when converted to Rs. The Commission has elaborated its views on Regulatory Asset Recovery and the tariff philosophy in Section 4 and 5 of this Order. Delhi Metro’s tariff is lower than tariff applicable to Railways.5/kVA and has computed the increase as 115% whereas the actual increase proposed is only 40%. The Commission noted that Business Plan submitted by RInfra-D was as per MERC MYT Regulations.

Ponrathnam submitted that RInfra-D should submit various steps taken to bring down the level of Commercial loss. iv.Case No. Shri George John submitted that RInfra-D projected lower Sales from Changeover consumers with an assumption that Changeover consumers would be switched over in a year time. The Tata Power Company Ltd. ii. RInfra-D submitted that there is very little variation between RInfra-D’s Own sales as computed in the Business Plan Order and that submitted in the MYT Petition as given in the table below: Own Sales (MU) As per Business Plan As per RInfra-D MYT Petition Difference ii. CSS charge and the Regulatory Asset recovery were not part of the Business Plan Petition. 2. Sandeep Ohri. FY 12-13 6343 6346 3 FY 13-14 6566 6594 28 FY 14-15 6797 6790 (7) FY 15-16 7038 7020 (18) Page 23 of 302 . Sandeep Ohri. Regarding reply to Mr.2 Sales i. an authorised consumer representative in this case submitted that in the present Case submitted that RInfra-D should explain the difference in total sales figures between Business Plan Order and MYT Petition. (TPC) submitted that RInfra-D has proposed lower Wheeling charges recovery by inflating Switchover Sales and decreasing Changeover Sales. Shri. RInfra-D submitted: a) The power purchase requirement depends only on sales to its own consumers hence the quantum of power purchase requirement does not change significantly. RInfra-D’s Response i. iii. which seems to be an incorrect assumption. Shri N.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period hence retail tariffs.

meter tampering. etc. Therefore.Case No. and that is on account of actual sales of FY 2012-13 as has been considered by RInfra-D. In response to Shri N. iv. Variation is as tabulated below: Particulars Business Plan Order Own MYT Petition Sales Variation Change Business Plan Order Over MYT Petition Sales Variation FY 2012-13 6343 6347 4 2872 3076 204 FY 2013-14 6566 6600 34 2852 1567 -1286 FY 2014-15 6797 6798 1 2845 526 -2319 FY 2015-16 7038 7028 -10 2861 549 -2312 From the above table.7% between FY 2012-13 and FY 2015-16.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period b) Sales to Changeover consumers has been projected to reduce drastically. as in future Changeover consumers are expected to migrate to TPC-D network based on the Commission’s directions given to TPC-D in Order in Case No. Ponrathnam. total sales. it can be inferred that: a) Own Sales: There has been marginal variation in RInfra-D Own sales as projected in RInfra-D Business Plan Order in Case No. was mainly on account of changeover sales estimated by RInfra-D. etc. Page 24 of 302 . In response to TPC’s query regarding over estimation of Switchover sales. Commission’s Rulings The Commission observed that the variation in Sales projected in MYT Petition and Business Plan Order. 151 of 2011. shows a decline of 19. 158 of 2011 and present MYT Petition of RInfra-D. iii. theft from LT pillars. RInfra-D submitted that the theft related losses due to a variety of reasons – meter bypass. RInfra-D submitted the same reply as submitted to Shri Sandeep Ohri. RInfra-D has been able to bring down the commercial losses over the years and is continuing its efforts in that direction through innovative technical solutions such as modular meter cabins.

Ponrathnam submitted that during Public Hearing Process. RInfra-D further Page 25 of 302 .9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period b) Changeover Sales: Variation in changeover sales is mainly due to assumption of RInfraD that conversion of changeover consumers to switchover in accordance with the directions of the Hon’ble Commission in Case No.25 % may be set and a suitable incentive may be provided (2/3rd-1/3rd profit sharing between Utility and Consumers). 2.5% distribution loss. The Commission has elaborated its views in Section 3 of this Order.Case No. RInfra-D’s Response i. to incentivise Utility to achieve 8. Shri N. the Commission has approved sales for the second Control Period based on the latest data available on Changeover sales and also considered the changeover sales approved by the Commission in its Order in Case 179 of 2011 in the matter of approval of MYT Petition of TPC-D.3 Distribution Loss i. Shri.46% is on higher side and a benchmark of 9. ii. RInfra-D should submit the basis for the statement made in the proceedings before the Hon’ble ATE that 65% customers come under the category of non-slum dwellers and 35% are slum dwellers. Shri George John submitted that Distribution loss of 9. RInfra-D submitted that it cannot comment on distribution loss trajectory suggestions which are not supported by any analysis. 2012. and that the distribution losses of nonslum consumers is less than 1% while losses in slum area vary between 15% to 70% with an average of 22%. He further suggested that the Distribution losses projected by RInfra-D are on higher side and the Commission should fix the realistic target of achieving distribution loss. iii. Sandeep Ohri submitted that RInfra-D should explain the difference in Distribution loss trajectory between Business Plan Order and MYT Petition. 151 of 2011 dated 22 August. However.

stopped/ faulty meters. RInfra-D submitted that in the Business Plan the FY 2011-12 figures were not available and hence. iii.05%. RInfra-D submitted that: a. all cost and losses are socialised so that all consumers pay for the same loss level and based on the same ACoS. ii. the movement of consumers from RInfra-D’s network to TPC-D’s network could likely cause distribution losses to go up due to worsening of consumer mix on RInfra-D’s network. However. Commission’s Rulings The Commission observes that RInfra-D submitted in its Business Plan Petition that the distribution losses of FY 2011-12 are considered as 9. irrespective of usage of network. despite the fact that for all the changeover consumers metering. Further. In response to Shri. N. giving credit for high consumption complaints is unilaterally done by TPC-D.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period submitted that in its MYT Petition it has considered Distribution loss on the current base value of FY 2011-12 and reductions thereafter are considered based on the Capex plan. Distribution loss target is set for the area of supply as a whole and not separately for different pockets within the supply area. losses applicable on wheeling consumers are differentiated voltagewise in the presently approved methodology. Overall distribution losses for RInfra-D area are 9.Case No. Ponrathnam’s query. it considered the distribution loss of FY 2010-11. it is insulated from commercial losses of RInfra-D. The area comprises of high loss and low loss pockets. b. RInfra-D projected no reduction in base Page 26 of 302 . voltage of connection or actual loss levels in a particular geographical area. however the moment it transfer to TPC-D as Changeover consumer. assessment of sale towards theft. which were based on actual losses of FY 2010-11. it absorbs the commercial loss of RInfra-D distribution system. As long as the consumer remains with RInfra-D supply.46% as per FY 2011-12 actuals. c. In the present arrangement of ACoS.

cost of Transmission towers already recovered till 15 August 2011and RInfra-D must submit information about fixed assets transferred of land and properties of Distribution division. 0. The Commission has elaborated its views in Section 3 of this Order. Rakshpal Abrol inquired about the procurement of electricity more than 500 MW from their Generating plant. However.00% in FY 2014-15 and 8. Shri.95% in FY 2015-16. the Commission in its Order in Case No. Shri Shirish Deshpande from Mumbai Grahak Panchayat submitted during public hearing process that Power Purchase Cost of RInfra-D is less than TPC-D even Page 27 of 302 .Case No. 124 of 2012. The quantum of reduction i.05% in the last two years.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period losses of 9.05% till FY 2013-14.e. while assuming the loss reduction to 9. The Commission has considered the loss reduction trajectory as approved in its Business Plan Order and applied it to actual distribution loss approved in Case No.. iii. 2. 2012 considered the loss trajectory as submitted by RInfra-D for the period from FY 2012-13 to FY 2015-16. RInfra-D in its present MYT petition has considered the actual distribution loss for FY 2011-12 as mentioned in the True-up Order for FY 201112 as approved in Case No. ii. RInfra-D should specifically explain high cost of Short term and Medium term Power Purchase for the MYT Period. Prayas Energy Group and Mr.05% for FY 2014-15 and FY 2015-16 is kept same as that submitted by RInfra-D in its Business Plan. For the purpose of the Business Plan. 2012. The same base has now been considered for the MYT period with reduction of 0.4 Power Purchase Expenses i. Further. 124 of 2012. 158 of 2011 dated 23 November. 158 of 2011 dated 23 November. Sandeep Ohri submitted that RInfra-D should explain the variation in Power Purchase Costs as submitted in its MYT Petition with that approved by the Commission in its Business Plan Order in Case No.

37% in the freight charges). RInfra-D submitted that average rate of Peak Power purchase as per CERC Market Monitoring Report as given below: Year FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13* (Upto Nov 12) iv. RInfra-D has considered the forecast of RInfra-G made in its MYT Petition from FY 2013-14 to FY 2015-16. iii. Further.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period then tariff of RInfra-D is higher than that of TPC-D.26 5. RInfra-D further submitted that even the present MYT Petition does not entirely reflect the increase in freight charges may be effective from FY 2013-14 onwards (an increase of 6% announced in the recent Rail Budget. RInfra-D submitted that the main variation in power purchase cost of Rs. RInfra-D’s Response i. whereas the MYT petition only considers an increase of 4. FAC may not be increased in following three years of the MYT from FY 2013-14 to FY 20015-16 and wheeling Charges should be kept constant.41 RInfra-D also submitted that the peak power rates are fluctuating year on year with no specific trend. RInfra-D further submitted that it has to procure power mainly during peak hours in view of peculiar load curve.29 5. In the Business Plan Order.Case No. Whereas in its current MYT Petition. the increase in freight charges was considered based on the actual freight increase effective from March 2012 onwards. Further. the Commission considered prevailing DTPS Tariff Order of September 2010 (applicable for FY 2010-11) which was based on the fuel prices prevalent in FY 2009-10. RInfra-D further submitted that its power purchase rate for short term Page 28 of 302 . Average Peak Rate in Rs/kWh 6. 1667 Crore in MYT Petition as compared to approved power purchase cost exists due to DTPS cost estimates. ii.48 5. RInfra-D further submitted that the difference existed only on variable cost as it considered appropriate to factor in the actual landed cost of coal and secondary oil as per the available data of FY 2012-13.

019. transmission and distribution till 15 August. vi. operate and maintain are ongoing in nature and have to be recovered on an annual basis including expenditure in transmission business. Both the Capex and Opex related costs are ongoing for the business and therefore recovered on an ongoing basis. “The Commission has considered the fixed and energy charges same as those approved while determining Tariff for RInfra-G for FY 2010-11 in the Order in Case 99 of 2009. upgrade.021.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period power for FY 2011-12 was Rs 4. the other sources of power already tied up and to be tied up is adequately addressed in its MYT Petition.57 Page 29 of 302 . RInfra-D submitted that the rates are as discovered following the due process of competitive bidding and have been adopted by the Commission.” The variation in Power Purchase cost of DTPS is tabulated as under: DTPS (in Rs.61 Crore and energy charges at Rs. RInfra-D stated that all expenses to construct develop. i. v.Case No. Regarding recovery of cost of generation. RInfra-D further submitted that no fixed assets are transferred out of Mumbai distribution business. 2011. Crore) FY 2012-13 FY 2013-14 FY 2014. Commission’s Rulings The Commission has observed that Shri Ohri seems to have estimated the variation of Rs. while issuing the Order on RInfra-D’s MYT Petition. fixed charges of Rs. RInfra-D has considered power purchase rate for FY 2011-12 as base rate with escalation of 3% for the Control Period. 2. Regarding Medium term power purchase rate.019.24 1.24 FY 2015-16 1.019. 216. In response to Shri Abrol’s query.47/unit which was much lower than peak power rate of transactions across the Country.12 per unit.24 1. for the purpose of this Order on provisional basis and the Commission shall consider the year-wise rate and fixed charges approved in RInfra-G’s MYT Petition. RInfra-D submitted that under an arrangement.15 Business Plan Order 1. 3314 Crore in power purchase is on account of reasons mentioned below: a) DTPS cost which is projected by RInfra-D based on MYT Petition of RInfra-G: Extract of Order in Case 158 of 2011 in the matter of Business Plan approval of RInfra-D dated 23 November 2012.e.

1143.15 MYT Petition 1.” … “The short term power procurement cost approved by the Hon’ble Commission is Rs.86 Crore.22 278.66 Total (a) b) Transmission Charges: In the Commission’s Order in Case No.22 307.59 1143.84 DTPS (in Rs. Crore) MYT Petition Variation Total Variation (c) FY 2012-13 265.39 265.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period FY 2015-16 1.90 Variation 284. Transmission Charges were not considered in the Power Purchase Expenses table referred by Shri Ohri and were treated as a separate Head. Crore) FY 2012-13 FY 2013-14 FY 2014. “The Commission has accepted the short-term rates (for procurement or sale of surplus) as projected by RInfra-D in the business plan for the period FY 2012-13 to FY 2015-16 and utilised the same for computing the cost of power purchase…” Relevant Extract of MYT Petition submitted by RInfra-D: “The base price of short term power purchase is considered as the actual weighted average price of the short term power purchased by RInfra-D in FY 11-12. 158 of 2011 in the matter of Business Plan approval of RInfra-D dated 23 November 2012.303.43 505. RInfra-D in their MYT petition have considered Transmission Charges as a part of their Power Purchase Expenses table. due to which there is a variation of Rs.Case No.66 292.39 FY 2013-14 FY 2014.78 418. 158 of 2011 in the matter of Business Plan approval of RInfra-D dated 23 November 2012.66 292.478.15 FY 2015-16 307. However in the Page 30 of 302 . 4 per kWh based on RInfra-D’s estimates at such point in time. Further annual escalation rate of 3% is used to project the price of short term power purchase from FY 12-13 to FY 15-16.665.67 1.86 c) Short Term Power Procurement Rate and Quantum: Extract of Order in Case No. which is as provided in the table below: Transmission Charges (in Rs.55 456. However.59 278.437.98 1.02 1.525.

Case No.9 of 2013

MERC Order for RInfra-D for MYT for Second Control Period

present petition, RInfra-D, in an attempt to be more realistic, has considered the cost of short term power procurement based on the weighted average price of the actual short-term power purchase in FY 11-12.”

Short Term Business Plan Order MYT Petition Variation (Rs Cr)

FY 2012-13 MU Rate Rs. Cr

FY 2013-14 MU Rate Rs. Cr

422.40 4.25 179.52 492.80 4.00 197.12 514.53 4.60 236.68 746.44 4.74 353.81 57.16 156.69

Short Term Business Plan Order MYT Petition Variation (Rs Cr)

FY 2014-15 MU Rate Rs. Cr

MU

FY 2015-16 Rate Rs. Cr 218.24 317.44

510.40 4.00 204.16 545.60 4.00 493.34 4.88 240.75 631.09 5.03 36.59 99.20

Total variation on account of this head is Rs. 349 Crore. d) Revenue from Sale of Surplus Power: Relevant Extract of MYT Petition submitted by RInfra-D: “The sale of surplus power considered by the Hon’ble Commission is Rs.4 per unit. However, considering the fact that RInfra-D’s surplus power is mostly available in the night hours when the demand of power is low and realised rate is accordingly poor, RInfra-D has considered the rate of sale of surplus power based on the actual realization from of sale of surplus power in FY 11-12.”
FY 2012-13 Sale of Surplus Power MU Business Plan Order MYT Petition -739.03 -645.94 Rate 4.25 3.03 Rs. Cr -314.09 -195.72 MU -651.49 -462.32 Rate 4.00 3.12 Rs. Cr -260.60 -144.24 FY 2013-14

Page 31 of 302

Case No.9 of 2013
Variation (Rs Cr)

MERC Order for RInfra-D for MYT for Second Control Period
118.37 FY 2014-15 116.35 FY 2015-16 MU -623.68 -615.92 Rate 4.00 3.31 Rs. Cr -249.47 -203.87 45.60

Sale of Surplus Power MU Business Plan Order MYT Petition Variation (Rs Cr) -813.12 -717.93 Rate 4.00 3.21 Rs. Cr -325.25 -230.46 94.79

Total variation on this account is Rs. 375 Crore e) Additional payment to WPCL: The additional payment made to WPCL as directed by the Commission in its Order in Case No. 39 of 2012. Such payment is due to change in Excise duty, VAT and Customs duty. As against the total claim of Rs. 27.6 Crore for FY 2011-12, RInfra-D has made payment of Rs 19.5 Crore as undisputed amount till date. The relevant extract for further payment to WPCL in the MYT Petition is as below: “Further claim of Rs 26.7 Crs was raised by WPCL for the period April 12 to September 12, against which RInfra-D has made payment of Rs 7.23 Crs. Matter is sub-judice before Hon’ble Commission for adjudication and any future payments will be based on the outcome of Case No 39 of 2012. The same liability is expected for the second half of FY 12-13. Hence, an additional payment of Rs. 14.46 Crore is considered in the MYT Petition for FY 12-13, over and above the payment of Rs. 19.5 Crore (pertaining to FY 11-12) as described above. Further, since power will be off taken from WPCL during FY 13-14 as well, the same change in law impact will cause an additional liability of Rs. 14.46 Crore for FY 13-14 as well. The same is accordingly added to the power purchase cost of FY 13-14.”

Wardha Power (in Rs. Crore) Business Plan Order MYT Petition Variation

FY 2012-13 952.38 986.45 34.07

FY 2013-14 779.13 793.68 14.55

Total variation on this account is Rs. 49 Crore.

f) Long Term Contract with VIPL:
Page 32 of 302

Case No.9 of 2013

MERC Order for RInfra-D for MYT for Second Control Period

In the Business Plan Order in Case No. 158 of 2011 dated 23 November, 2012, the Commission considered as given below: “RInfra-D has submitted that for the purpose of Business Plan, it has assumed that about 500 MW of power would be procured for FY2014-15 and FY201516 and the rate of procurement for the same is assumed at Rs. 3.90 per unit, …. For the approval of Business plan, the Commission has accepted RInfra-D’s submissions for the quantum (MW) and rate as projected.” RInfra-D in its present MYT Petition has submitted as given below: “Since the existing medium term contracts are applicable till FY 13-14, for the period FY15 onwards, there would be a significant shortfall in base load supply without additional power procurement. The additional quantum required in FY 14-15 is about 530 MW as already worked out in the previous section of this petition. To meet the shortfall, R-Infra D is considering procuring 600MW from Vidarbha Industries Power Limited from FY 14-15 onwards. Net energy availability after subtracting auxiliary consumption would be about 544 MW. A petition for approval of Long Term PPA between Reliance Infrastructure Limited (Mumbai Distribution) and Vidarbha Industries Power Limited and Determination of Provisional Tariff for VIPL’s Butibori Plant has been submitted on 28 December, 2012 to the Hon’ble Commission and assigned Case No. 2 of 2013.”

VIPL (in Rs. Crore) Business Plan Order MYT Petition Variation Total Variation (f)

FY 2012-13 498.88 497.78 -1.1

FY 2013-14 498.88 511.75 12.87

FY 2014- 15 1,451.97 1,384.87 -67.1 -106.70

FY 2015-16 1,455.95 1,404.58 -51.37

g) Power Procurement from Renewable Energy Sources: Renewables FY 2012-13 (in Rs. Crore) Business Plan Order 273.84 MYT Petition 274.99 Variation 1.15 Total Variation (g) FY 2013-14 341.66 293.22 -48.44 -162.76
Page 33 of 302

FY 2014- 15 353.22 298.24 -54.98

FY 2015-16 365.28 304.79 -60.49

Case No.9 of 2013

MERC Order for RInfra-D for MYT for Second Control Period

The Commission observed that above mentioned variation is mainly on account of assumption of RInfra-D that shortfall in Non-Solar RPO would be met through purchase of REC at Rs 1.85 per kWh. Hence, the total variation amounts to Rs. 3314.34 Crore under various heads as mentioned above. The Commission has admitted the Petition after detailed scrutiny of the MYT Petition and does not find any discrepancy in admission of the Petition. The Commission noted the other suggestion and objections submitted by consumers and Consumer Representatives and also their replies submitted by RInfra-D. 2.5 Operation and Maintenance (O&M) Expenses Shri Abrol inquired about nature and utilisation of O&M expenses and Service line charges. A similar query was submitted by Shri Ulhas Chaudhari and TPC. RInfra-D’s Response i. RInfra-D submitted that O&M cost is an ongoing expense to run the distribution business, maintain and upkeep the network. It is annual expense and not a onetime cost, which can be recovered till a particular point in time and not thereafter. ii. RInfra-D further submitted that the service line charges are paid for by the consumers for last mile connectivity only and that too up to a normative amount as per the applicable Schedule of Charges. All recovery made towards service line contribution is deducted from the GFA to work out the allowable interest on loans and Return on Equity. The Service Line contribution is charged to the consumers, based on the Commission’s approved schedule of charges, and is deducted from the capitalisation during the respective years. Therefore, such amount is not included in the capitalisation amount considered for ARR purposes. Commission’s Rulings The Commission has noted various objections and suggestions of the consumer representatives on this issue and also the reply submitted by the RInfra-D in this matter of utilisation of Service line charges. The Commission has elaborated its views on O&M expenses in Section 3 of this Order.

Page 34 of 302

Case No.9 of 2013 2.6

MERC Order for RInfra-D for MYT for Second Control Period

Capital Expenditure and Capitalisation i. Shri. Sandeep Ohri submitted that RInfra-D should explain increase in capitalisation as submitted in its MYT Petition with that approved by the Commission in its Business Plan Order in Case No. 158 of 2011 dated 23 November, 2012. ii. TPC submitted that RInfra-D has proposed huge Capital Expenditure thereby creating large quantum of stranded assets. iii. Urja Prabodhan Kendra suggested that the necessary HT/ LT network used by TPC-D for Changeover consumers may be purchased by TPC and wheeling charge portion proposed by RInfra-D should be eliminated. RInfra-D’s Response i. Regarding difference in Capitalisation figures in its Business Plan Order and in its present MYT Petition, RInfra-D submitted that the difference is on account of approval of additional schemes after the issuance of Business Plan Order and before the submission of MYT Petition. ii. In response to TPC-D query, RInfra-D submitted that the entire Capex plan and each individual scheme has already undergone the due process of in-principle approval from the Commission and the Commission has exercised its wisdom in assessing the need for the schemes, their benefits to the customers and the prudence of cost estimates. iii. In response to Urja Prabodhan Kendra’s suggestion, RInfra-D submitted that it means that RInfra-D would sell its network to TPC-D in a given area and end up laying its fresh network in such area and the obligation of TPC-D to lay its own network gets transferred to RInfra-D. Commission’s Rulings The Commission in its Order in Case No. 158 of 2011 dated 23 November 2012 directed as under: “With relation to Regulation 27 of the MERC MYT Regulations, 2011 (Capital cost and capital structure), it is clarified by the Commission that for the Capital Expenditure schemes which are under process of getting in-principle approval,
Page 35 of 302

Case No.9 of 2013

MERC Order for RInfra-D for MYT for Second Control Period

RInfra-D may include in its MYT Petition, the capitalisation pertaining to the in-principle approved schemes. The Commission also notes that the schemes for Retail Supply business of RInfra-D are yet to receive in-principle approval. RInfra-D may include those schemes as well in their MYT Petition if they are approved before filing of the same. …” The Commission has noted that subsequent to issuance of Business Plan Order, the Commission has approved Capex scheme of capitalisation of Rs 1076 Crore in the second Control Period. The Commission noted the suggestion and objections submitted by consumers and Consumer Representatives and also their replies submitted by RInfra-D. The Commission has elaborated its views in Section 3 of this Order.

2.7

Depreciation i. Prayas Energy Group submitted that RInfra-D should explain the reason for higher Depreciation expenses and Interest on long term loans submitted in its MYT Petition with that approved by the Commission in its Business Plan Order in Case No. 158 of 2011 dated 23 November, 2012. RInfra-D’s Response RInfra-D submitted that the difference is on account of approval of additional schemes after the issuance of Business Plan Order and before the submission of MYT Petition. On account of such increase in capitalisation there has been higher Depreciation expenses and Interest on long term loans submitted in MYT Petition as compared to the expenses approved by the Commission in its Business Plan Order in Case No. 158 of 2011. Commission’s Rulings The Commission in its Order dated 23 November 2012, in Case No. 158 of 2011, has approved capital expenditure (Capex) related expenses based on the Capex approved by the Commission till date and directed RInfra-D to incorporate the additional Capex schemes approved by the Commission after issuance of Business Plan Order and before submission of the MYT Petition.

Page 36 of 302

there were certain clarifications sought by the Commission in the meeting held on 15 February 2013. The Commission noted that RInfra-D has represented the Regulatory Asset Charge (RAC) as a separate line item mainly because it needs to be charged to changeover consumers also. However. these were inadvertently included as Annexure to the Petition. Sandeep Ohri and TPC submitted that RInfra-D’s present MYT Petition filed by RInfra-D was not duly supported by a properly executed affidavit. The Commission accepts the request of RInfra-D in condonation of the procedural error in filing reply by RInfraD. These clarifications did not cause any material change in the Petition and therefore were to be submitted as an Annexure to the letter dated 16 February 2013.9 of 2013 2. MERC Order for RInfra-D for MYT for Second Control Period Shri. TPC submitted that there was misrepresentation of category-wise tariffs in RInfraD’s MYT Petition and Public Notice. ii. However. the affidavit supporting the Petition was notarised on 14 February 2013.Case No. Commission’s Rulings The Commission has noted the objections submitted by TPC and Consumer Representatives and also their replies submitted by RInfra-D. hence RAC needs to be separated out from the retail tariff of direct consumers of RInfra-D. RInfra-D denied any misrepresentation of information in the Public Notice. RInfra-D submitted that it had originally prepared the MYT Petition to be filed on 14 February 2013.8 Procedural Issue i. The Commission is of the opinion that RInfra-D has submitted in its Petition that RAC would be charged over and above the retail tariff and hence. RInfra-D regretted the inadvertent error and requested the Commission to condone the mistake and treat the submissions as a part of the covering letter and may disregard these to be part of the Petition. the Commission in this Order has shown the impact of including recovery of Regulatory Asset on various tariff categories. there is no misrepresentation. RInfra-D’s Response i. Accordingly. However. Page 37 of 302 . ii.

iii. Shri N. Commission’s Rulings The Commission noted the objections and also their replies submitted by RInfra-D.10 Wheeling Charges i. In accordance with the MYT Regulations.9 Energy Charges MERC Order for RInfra-D for MYT for Second Control Period Mumbai Grahak Panchayat submitted that RInfra-D has not proposed hike in Energy Charges for LT consumers which is misleading. ii. The existing tariffs include the presently applicable FAC.The Commission has elaborated its views in Section 5 of this Order.Case No. RInfra-D’s Response RInfra-D submitted that the net average billing rate to any consumer consuming above 300 units is proposed to be lowered than the present rate. 2. It was further submitted that whether RInfra-D uses system load factor in computation of the Wheeling Charges. if any. The Commission is of the view that Z factor charge needs to be charged as per MERC MYT Regulations. the incremental FAC. Ponrathnam submitted that Wheeling Charges denomination proposed by RInfra-D is in Rs/kWh format and not in Rs/kW/Month. Page 38 of 302 . as there is no guarantee whether RInfraD would not seek FAC at a later date. Shri Ulhas Chaudhari submitted that the sale of energy to RInfra-D consumers is nearly 3 times that of energy wheeled to Changeover consumers. Mumbai Grahak Panchayat and Niwara Vidyalaya submitted that RInfra-D proposed unjustified hike in wheeling charges in its MYT Petition. 2011. due to the reduction in energy charges proposed by RInfra-D.9 of 2013 2. but the amount of wheeling charges recovered from changeover consumers is only 20% of the total expenses. during a given year going forward would be dependent on approved power purchase rates in the MYT Order and the actual movement of power prices in the market during the year. 2011.

RInfraD further submitted that the Hon’ble Supreme Court has laid down that Distribution Licensees who are yet to lay down their networks can supply electricity in retail to consumers using other licensee’s network. In response to Shri N. RInfra-D submitted that the Wheeling Charges is computed based on total Wires ARR divided by total voltage-wise energy sales (including both own and changeover sales). Further. RInfra-D submitted that the Wheeling Charges have not been revised for nearly four years./kW/month denomination. The increase in network cost from what was approved in Case No. Wheeling Charges proposed by RInfra-D is independent of system Load Factor. which is verifiable from SLDC records. Thus. in Case No. . RInfra-D submitted that the Wheeling charges are proposed based on the presently applicable methodology. Ponrathnam’s query. 121 of 2008. Since. b) It has not determined system Load Factor based on ABR. 121 of 2008 till the projection made for FY 2013-14 in the present MYT Petition is around 73% and is the main reason for the its proposal of increase in Wheeling charges. the wheeling charges recovery is less as compared to the total wires expenses.9 of 2013 RInfra-D’s Response MERC Order for RInfra-D for MYT for Second Control Period i. on payment Page 39 of 302 ii. the consumption mix of changeover consumers creates a situation of lower recovery of wires cost from change-over consumers. The present Wheeling charges were approved vide Commission’s Clarificatory Order dated 22 July 2009.Case No. In response to Shri Ulhas Chaudhary’s query. a large part of changeover consumption is at HT. The System Load Factor of 68% used in the MYT Petition to determine Peak Demand of RInfra-D represents the ratio of Peak Demand to Average Demand in a given year and is based on the previous few years’ data. RInfra-D clarified that a) Wheeling charges are proposed by RInfra-D in Rs/unit denomination and not in Rs. while passing on a larger share to remaining (almost 96%) LT consumption of RInfra-D’s own consumers. Wheeling charge for HT consumers is much lower than that for LT consumers. iii.This yields different rates of wheeling charge for HT sales and LT sales. Further.

Similar query was submitted by Nagari Nivara Parishad. as it imposes higher level of Cross Subsidy Surcharge and also there must be some roadmap for reduction in Cross Subsidy Surcharge. the Hon’ble ATE. dated 21 December 2012. Abhinav Shikshan Prasarak Mandal further submitted that CSS is to be applicable for new consumers changing over in FY 2013-14 and not to consumers changed over earlier and requested the Commission not to approve high CSS as submitted by RInfra-D. The Commission has elaborated its views in Section 5 of this Order. ii. MMOPL submitted that RInfra-D had not represented CSS correctly by considering Average Tariff and Average Cost of supply (ACoS). Further. Shri Abrol submitted that RInfra-D should explain applicability of Cross-subsidy Surcharge and Regulatory Asset charge for consumers below 1000 kVA. Similar query was submitted by Mumbai Grahak Panchayat. Hence. clearly held that the act of supply by TPC-D to retail consumers using network of RInfraD is Open Access. Commission’s Rulings The Commission noted the suggestion and objections and also their replies submitted by RInfra-D. in its Judgment in Appeal Nos. wheeling charges are clearly payable. Retailers Association of India and Shopping Centres Association of India submitted that RInfra-D’s submission to impose sudden large increase in CSS is Page 40 of 302 . iii. v. 2. 144 and 164 of 2011. vi. TPC and Nagari Nivara Parishad. 132. Indian Hotel & Restaurant Association submitted that RInfra-D has created hurdles in TPC-D’s network development and CSS cannot be levied on change over consumers.11 Cross Subsidy Surcharge i. 133.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period of surcharge in addition to charges of wheeling. 139.Case No. Prayas Energy Group and Abhinav Shikshan Prasarak Mandal submitted that RInfra-D should rework its methodology. iv.

iii. RInfra-D further submitted that its proposal of CSS.e. Further. in its Order in Case No. the CSS shall also vary in accordance with the same. RInfra-D’s Response i. Therefore. Regarding CSS. vi. the Rs. 138 of 2012 that Surcharge for each tariff category and sub-category / slab should be based on the approved current level of cross-subsidy ii. if there is consumption of 550 units then the Page 41 of 302 . In response to MMOPL. cross-subsidy is worked out as a ratio of ABR (based on the proposed tariffs) and the Average Cost of Supply. including its recovery from change-over/open access consumers is based entirely on the methodology as approved by the Commission. RInfra-D replied to Nagari Nivara Parishad and Abhinav Shikshan Prasarak Mandal that the Cross-Subsidy Surcharge for residential slabs is proposed to apply telescopically . RInfra-D submitted that as the approved current level of cross-subsidy will vary from one year to next. In response to Indian Hotel & Restaurant Association’s query RInfra-D submitted that it has never placed any hurdles in TPC’s network development v. 5. ACoS reflects the average cost of distribution business as a whole.00 per unit shown for FY 2013-14 will only apply to units above 500. iv. Similarly. i. RInfra-D submitted that the development of cross-subsidy reduction roadmap is the prerogative of the Commission and there is a clear cross-subsidy reduction roadmap in RInfra-D’s MYT Petition itself which indicate that the tariffs and consequently the cross-subsidy levels and the Cross-Subsidy Surcharge progressively come down till FY 2015-16 from their starting level in FY 2013-14. It is not specific to any consumer or consumer category. RInfra-D submitted that it has been calculated with reference to the proposed tariff and using the formula as provided in the Tariff Policy (with modification for grossing up of losses)..9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period an attempt to deter other consumers of itself from changing over to TPC-D and it is abuse of dominant position and denial of market access. RInfra-D submitted it has computed the ACoS as per the present methodology adopted in State of Maharashtra. RInfra-D further submitted that the Commission has also ruled.Case No.

00 per unit as considered by the objectors.00*100 + 0. 5. Ponrathnam submitted during Public Hearing Process. 1. The Commission has elaborated its views in Section 5 of this Order. iv.59 per unit. Shri Abrol submitted that the consumers are already paying wheeling charges. Page 42 of 302 .00*200 + 3. recoverable from all consumers. Commission’s Rulings The Commission noted the suggestion and objections submitted by consumers and Consumer Representatives and also their replies submitted by RInfra-D. Ulhas Chaudhari submitted that the entire Regulatory Asset approved in Case No.12 Regulatory Asset and its Recovery Mechanism i. ii. distribution and commercial losses and requested for verification of Regulatory Assets which was being claimed. iii. A similar submission was made by Shri N. 180 of 2011 should be recovered through a one-time monthly bill of the consumers along with the carrying cost accumulated till date. RInfra-D’s Response i. Abhinav Shikshan Prasarak Mandal submitted that Regulatory Asset charges cannot be made applicable to Changeover consumers as they are open access consumers and the Act does not provide levy of any charges on them other than wheeling charges. Urja Prabodhan Kendra and Nagari Nivara Parishad. CSS and Additional Surcharge. With this correction.Case No. RInfra-D submitted that the Regulatory Assets represent past accumulated receivables and are in nature to arrears.00*50 = Rs. the effective increase in tariffs would be much less than what the objectors had stated. instead of Rs. TPC submitted that RInfra-D has no right to claim Regulatory Asset Charge from Changeover Consumers.53*200 + 5. Shri.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period effective CSS would be = 0. 2. A similar query was raised by Indian Hotel & Restaurant Association. including past consumers.

9 of 2013 ii. RInfra-D submitted that the suggestion of entire one time recovery of Regulatory Asset Charge. RInfra-D submitted that Wheeling charges are presently being levied on the changeover/open access consumers as per the Order of the Commission in Case No. RInfra-D has suggested a phased recovery of regulatory asset. RInfra-D further submitted that TPC-D is well aware of the treatment provided for regulatory asset recovery for its Distribution License in Delhi which allows recovery of a separate 8% Surcharge on tariffs for recovery of past accumulated deficit. 121 of 2008. In response to Shri. RInfra-D submitted that Regulatory Assets represent past accumulated receivables and are akin to arrears. Accordingly. Page 43 of 302 . interest and return. except to the extent to accumulated deficit due to nonrecovery of capital related expenses such as depreciation. Ulhas Chaudhari. iv. recoverable from all consumers. iii. would lead to a tariff shock for consumers. In response to TPC query. RInfra-D further submitted that TPC-D is well aware of the treatment provided for regulatory asset recovery for its Distribution License in Delhi which allows recovery of a separate 8% Surcharge on tariffs for recovery of past accumulated deficit. The Regulatory Assets represent a deferred recovery of the past cost and it is prudent to let the consumer know the current cost as reflected in tariff and the past deferred recovery separately. The Commission has elaborated its views in Section 5 of this Order. MERC Order for RInfra-D for MYT for Second Control Period In response to Shri Abrol’s query.Case No. including past consumers. Commission’s Rulings The Commission noted the suggestion and objections submitted by consumers and Consumer Representatives and also replies submitted by RInfra-D. RInfra-D further submitted that Regulatory Assets refer to past accumulated revenue deficit and has no relation with the capital assets.

RInfra-D submitted that under the Act. the consumer is a consumer of RInfra – Distribution business only. Hence. The Commission notes that Section 2(15) of the Act. In response to Shri N. maintain and operate its distribution network and meet its Universal Supply Obligation.Case No. Ponrathnam query. RInfra-D should provide its wires to TPC-D to enable them to supply power to retail consumers. Commission’s Rulings This licence related issues are outside the ambit of present proceeding in tariff determination process. RInfra-D submitted that it has a composite licence for wires business and supply business as stipulated in the EA. In response to MMOPL query.13 Distribution License related issues i. 2003 and the expenses are approved in Order to correctly determine the expenses of network to be levied on Open Access / Wheeling consumers. However. subject to payment of surcharge in addition to the charges for Wheeling as determined by the State Commission. Entire cost of laying 33kV network is borne by MMOPL and it is directly off-taking power from receiving station at Aarey and cannot be regarded as connected to RInfra-D and a consumer of RInfra-D. ii. RInfra-D submitted that physical connection pertaining to Metro Load is made directly with the 33 kV side of RInfra-T’s Aarey R/S. The Distribution Licensee is duty bound under its license to develop. MMOPL submitted that its load is directly connected with 220/33kV receiving station of RInfra-T. RInfra-D’s Response a. each Distribution Licensee is obligated to lay its own distribution network in order to supply electricity to the consumers. b. Ponrathnam submitted that the concept of Wheeling was introduced in the Act to enable Distribution Licensees who are yet to install their distribution line to supply electricity directly to retail consumers. Shri N. states as under: Page 44 of 302 .9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 2. c.

the Government or such other person. though it may have been connected to RInfra-T network.Case No.9 of 2013 “(15) MERC Order for RInfra-D for MYT for Second Control Period "consumer" means any person who is supplied with electricity for his own use by a licensee or the Government or by any other person engaged in the business of supplying electricity to the public under this Act or any other law for the time being in force and includes any person whose premises are for the time being connected for the purpose of receiving electricity with the works of a licensee. Hence. the Commission is of the opinion that MMOPL is a consumer of RInfra-D.” emphasis added The Commission notes that the definition of consumer clearly recognises a person who is supplied by a Licensee as a consumer. as the case may be. Page 45 of 302 .

2. c) The Seasonality factor was computed category wise based on the ratio of actual total sales of October 2011 – March 2012 (6 months cumulative) to actual Total Sales for the period April 2011-September 2011 (6 months cumulative) for each consumer category.Case No.1 Approach 3. RInfra-D further submitted that the growth rate for each consumer category was estimated based on the last five years (FY 2007-08 to FY 2011-12) actual total sales Page 46 of 302 .1 Sales forecast 3.2 The total sales for each year of the rest of the Control Period was estimated by applying historical total sales growth rate to the estimated total sales for FY 201213.2 Estimation of Total Sales 3.1 RInfra-D submitted that it adopted following approach for estimation of its Own Sales for the Second Control Period from FY 2012-13 to FY 2015-16 as: a) Estimation of total sales in the RInfra-D area including energy supplied to Changeover consumers by TPC-D. the consumer category wise total sales for the period October 2012 to March 2013 was estimated by applying a “Seasonality Factor” on the actual data for the period April 2012 to September 2012. DETERMINATION OF THE ARR for the CONTROL PERIOD from FY 2012-13 to FY 2015-16 3. b) Due to huge seasonal variations in demand.1. b) Estimation of Changeover sales category-wise considering the impact of Order in Case No. Hence.1.1. sales estimate for period October 2012 to March 2013 needed to consider the effect of seasonality. 3.1.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 3.1 RInfra-D submitted that a) The actual sales data available for the period April 2012 to September 2012 (both own and change-over) was used to estimate total sales for FY 2012-13. c) Estimation of RInfra-D own sales which is difference of the total sales and Changeover sales.1.2. 151 of 2011 dated 22 August.1. 2012. 3.

05% 2.99% 4.65% 5.11% 9.3 RInfra-D submitted that in its MYT Petition. The category wise growth rates used by RInfra-D.36% 2. are given in the table below: Table 1: Total sales CAGR . as past growth rates in electricity consumption will be reflective of the future and the future growth rates will not be very different from the past.28% 2. for estimation of total sales. including change-over consumers) based on historical growth rates.1.4 The total energy consumption in the licensed area of supply for each year of the MYT Period as submitted by RInfra-D is given in the table below: Page 47 of 302 .06% 3.49% 2. the CAGR based sales forecast has produced fairly accurate results when the sales as forecast at the time of ARR submission is compared with the actual sales at the time of true-up.Category wise Total Sales (%) as submitted by RInfra-D Consumer Category LT Residential LT Commercial LT Industrial LT Advertisements LT Street Light LT Temporary HT Industrial HT Commercial HT Housing Growth Rate (%) 2. 3. total sales in license area.2. even in the face of increasing urbanisation and commercialisation in the licensed area.Case No.1.e.2.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period (MU) data.14% 3. it has adopted the approach of forecasting total sales (i. RInfra-D also submitted that in the past.

9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Table 2: Total Sales as projected by RInfra-D of consumer connected to its Distribution System (MU) Consumer Category & Consumption Slab LT I .57 1.20-50 kW LT II (c) .52 353.24 0.23 1.693.51 1.77 1.356.50 582.57 493.20 0.80 1.39 520.22 3.33 Page 48 of 302 .96 1.44 57.Below Poverty Line LT -I Residential (Single Phase) 0-100 101-300 301-500 501 and above LT -I Residential Three phase 0-100 101-300 301-500 501 and above LT II (a) .95 3.793.82 360.27 375.95 368.13 729.LT Sales HT I: HT-Industry HTII : HT.63 39.09 364.98 946.72 629.22 192.03 192.09 204.35 57.0-20 kW LT II (b) .28 304.Crematorium & Burial Grounds LT IX: LT –Agriculture Total.28 1.59 795.85 166.05 1.446.07 4.05 9.05 9.50 1.05 1.33 1.22 56.438.70 244.60 1.62 565.79 187.59 295.53 78.57 58.42 170.63 4.23 10.04 8.959.27 - FY 2013-14 0.257.55 1.Commercial HT III: HT-Group Housing Society HTIV : HT .26 251.41 3.42 1.62 10.Advertisements and Hoardings LT VI: LT -Street Lights LT-VII (A): LT -Temporary Supply Religious LT-VII (B): LT -Temporary Supply Others LT VIII: LT .575.843.above 50 kW LT III .60 40.61 1.Case No.35 210.83 253.08 99.01 92.79 264.08 41.32 181.30 685.924.12 102.63 38.27 0.24 176.09 343.00 353.04 95.17 0.HT Sales Total FY 2012-13 0.338.125.59 599.847.49 230.80 FY 2015-16 0.766.80 FY 2014-15 0.481.84 197.04 1.20 867.612.04 8.24 4.21 1.396.Temporary Supply HT .45 1.166.09 276.23 313.42 506.40 1.77 657.50 182.42 4.13 603.90 617.LT Industrial upto 20 kW LT IV .833.10 243.04 8.18 9.50 534.66 1.39 57.295.73 1.98 198.421.85 3.76 60.204.902.35 333.10 286.45 237.89 1.865.04 1.LT Industrial above 20 kW LT-V : LT.12 1.Railways (New Category) Total .

2012. to estimate sales from existing changeover Page 49 of 302 . For FY 2012-13. which is representative of the average increase in sales (including both HT and LT) for two year period from FY 09-10 to FY 1112 for both these categories.2. RInfra-D submitted vide its reply dated 11 February.3.1.3 Estimation of Changeover Sales 3.” 3. historical 5 year CAGR (FY 2006-07 to FY 2011-12) was relatively high compared to growth rate considered in other categories. historical CAGR may not provide the right picture while estimating sales for a longer period from FY 2012-13 to FY 2015-16. the higher growth rate may not be realized in the future simply because there is no reason to believe that there would be any spurt in the number of crematoriums or for that matter agriculture pumpset connections in the area of supply. Hence.3. Hence sales for this category have been considered at a moderate growth rate of 2% per annum.5 Further.1. etc. Hence a moderate growth rate of 3% has been considered. due to less volume. 3. LT IX and HT IV as these were hard punched values in the model. Considering the huge difference in Historical 5 year CAGR (FY 2006-07 to FY 2011-12) and Historical 2 year CAGR (FY 2009-10 – FY 2011-12).1. in reply to the Commission’s query regarding basis of CAGR for LT VIII. For LT VIII (Crematorium) and LT IX (Agriculture).1.1 RInfra-D submitted that its approach for estimating Changeover Sales is based on consideration of the directions given by the Commission to TPC-D in its Order in Case No. 2013 that: “Sales for HT IV category (HT temporary supply) has been introduced in FY 2009-10 and the data from FY 2009-10 onwards shows wide variations on a Year on Year basis. 151 of 2011 dated 22 August.2 RInfra-D further submitted its approach for estimation of Changeover Sales as given below: a) Existing Changeover sales estimation: Estimation of sales to existing changeover consumers as on September 2012 in all 20 clusters was considered by RInfra-D.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 3.Case No. no specific trend in consumption as connections are only temporary.

000 Total Number of consumers Residential (1 Phase) 0-100 18.Case No.000 consumers will migrate/change over each year from FY 2012-13 onwards to FY 2015-16. around 37.000 100-300 17.000 75.500 Residential (3 Phase) 0-100 750 1.500 consumers in the region common to RInfra-D and TPC-D from Residential category (0-300 units) have additionally migrated/changed over to TPC-D. Seasonality Factor used in estimation of Total sales was adjusted to reflect the lack of additional growth in consumers while estimating sales from existing changeover consumers. for MYT Petition.500 1.000 36.500 75.000 consumers can potentially migrate from RInfra-D to TPC-D in the above mentioned categories. actual data for the period April to September 2012 was considered. RInfra-D submitted that for the period April 2012 to September 2012. Hence. b) Additional Changeover sales estimation: Estimation of Sales to additional changeover consumers in all clusters only from the residential (0-300 units) category.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period consumers.500 34. RInfra-D submitted year wise addition considered in change-over residential consumers (Single & Three Phase) with consumption between 0-300 units per month as given in the table below: Table 3: Additional Changeover over Consumers as submitted by RInfra-D FY FY FY FY Additional Changeover consumers 2012-13 (H2) 2013-14 2014-15 2015-16 37. For rest of FY 2012-13. Based on this trend.000 75. RInfra-D submitted that a uniform specific consumption growth rate of 2% was used to estimate the sales for additional changeover consumers for the period FY 2012-13 to FY 2015-16.500 34.000 36. For the period FY 2013-14 to FY 2015-16.500 1.500 Page 50 of 302 . seasonality factor was applied to sales of April to September 2012 to arrive at the sales for October 2012 to March 2013.000 36. RInfra-D assumed that 75. around 75. a specific consumption growth rate of 2% was assumed on the FY 2012-13 estimated sales number to determine sales to existing changeover consumer for the respective year.250 34.

1.0-20 kW LT II (b) .27 107.00 26.87 13. 2012 in all 20 clusters.28 54.72 13.32 11.95 0. 151 of 2011.53 52.62 410.36 27.84 18.26 126.40 51.500 3.87 18.28 164.46 Page 51 of 302 .53 56.72 0.57 10. 151 of 2011 was applied by RInfra-D as: d) Subsequent to 21 August.40 209.60 0.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period FY FY FY FY 2012-13 (H2) 2013-14 2014-15 2015-16 1.64 328.000 3. the sales to additional change-over consumers from 0-300 residential category were pruned down to proportionately represent the same from only the remaining 9 clusters.69 12.99 119. 3.00 8.82 57. Further.Below Poverty Line LT -I Residential (Single Phase) 0-100 101-300 301-500 501 and above LT -I Residential Three phase 0-100 101-300 301-500 501 and above LT II (a) . 2013 till end of FY 2015-16 .20-50 kW 0.06 11. RInfra-D also submitted that the existing ratio between changeover sales in 9 clusters with respect to total changeover sales in all 20 clusters was used to estimate the sales in the 9 clusters post 22 August 2013.48 1. 2013.21 49.78 37.00 36.03 2.09 FY 2015-16 0.53 14.12 84. the effect of Order in Case No.38 55.000 3.3 The sales projections for changeover consumers as submitted by RInfra-D.3.56 46.84 0.31 109. is given in the table below: Table 4: Changeover Sales as projected by RInfra-D (MU) FY FY FY Consumer Category & Consumption Slab 2012-13 2013-14 2014-15 LT I .95 42. e) Subsequent to 21 August.94 14.13 49.000 Additional Changeover consumers 100-300 c) Pending applications sales estimation: RInfra-D submitted that it included Sales pertaining to Pending applications as on August 22. the sales to existing changeover consumers were pruned down proportionately to represent the same only from the 9 clusters as per Order in Case No.Case No.00 11.15 194.

4.71 526.1.34 0.60 127.98 0.12 1.45 0.13 154.30 FY 2013-14 210.72 548.09 309.81 62.16 1.Ghatkopar (VAG) Corridor metro Mass Rapid Transit System (MRTS) project.18 858.LT Sales HT I: HT-Industry HTII : HT.4 RInfra-D submitted that it has projected a significant reduction in Changeover sales from FY 2013-14 onwards.Temporary Supply HT .60 0.Case No. i. based on the 5 year CAGR whereas there was reduction in the number of consumers as projected.Crematorium & Burial Grounds LT IX: LT –Agriculture Total.29 25.83 0.58 16.16 460.42 10.84 1.16 0.4 Estimation of RInfra-D Own Sales 3.18 7.Advertisements and Hoardings LT VI: LT -Street Lights LT-VII (A): LT -Temporary Supply Religious LT-VII (B): LT -Temporary Supply Others LT VIII: LT .105.85 569.09 7.1 RInfra-D submitted it estimated its own sales as the difference between the Total Sales and Changeover Sales. connection to TPC-D’s distribution network.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period FY 2012-13 387.Railways (New Category) Total .32 2.05 325.05 0.07 FY 2015-16 94.41 0.above 50 kW LT III .76 Consumer Category & Consumption Slab LT II (c) .1.14 0..15 200.1.218.36 39.HT Sales Total 3.58 7.10 0.e. RInfra-D submitted vide its reply dated 12 February.21 3.27 1.13 0.076.15 204.Andheri.55 7.91 157. Ltd. which is categorised in a new category – “HT –Railways” 3.64 0. 3.4. due to conversion of existing Changeover consumers in FY 2012-13 to Switchover.2 Further.66 131.09 271.24 0.28 318.03 39.05 344.49 0.1.LT Industrial above 20 kW LT-V : LT.LT Industrial upto 20 kW LT IV .Commercial HT III: HT-Group Housing Society HTIV : HT .05 0. being implemented by Mumbai Metro One Pvt. in reply to the Commission’s query regarding “Own Sales” increasing from past.566.50 FY 2014-15 92.3.49 0. RInfra-D submitted that it projected additional requirement from Versova. 2013 that the number of RInfra-D consumers shows a declining trend in the second Page 52 of 302 .

17 247.117.30 162.05 1. Therefore. Hence.59 59.08 268.75 67.38 151.282.849.05 1.78 133.76 61.4.50 1.73 173. RInfra-D submitted that this is primarily due to reduction of consumers in the residential (0.LT Industrial above 20 kW LT-V : LT.13 284.81 3. however on percentage terms.757.Case No.03 120. the reduction in sales is small (less than 3% CAGR basis for the period FY 2012-13 (H2) to FY 2015-16).24 1.300) categories due to migration of consumers to TPC-D.06 0.77 205.04 1.34 131.23 274.98 191.04 1.078.10 167.37 145.00 190. Hence.68 150.70 1.30 286.77 1. Further.above 50 kW LT III .81 195. due to the changing sales and consumer mix of RInfra-D.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Control Period.00 253.50 205.34 186.59 Page 53 of 302 .23 0.48 180.40 0.93 288. the contribution per consumer of Residential (0-300) categories to total sales is significantly lower compared to other categories. Also.3 The Own sales projections as submitted by RInfra-D without considering impact of Demand Side Management (DSM) is given in the table below: Table 5: Own Sales as projected by RInfra-D (without considering impact of DSM) (MUs) FY FY FY FY Consumer Category & Consumption Slab 2012-13 2013-14 2014-15 2015-16 LT I .415.49 184.146.Below Poverty Line LT -I Residential (Single Phase) 0-100 101-300 301-500 501 and above LT -I Residential Three phase 0-100 101-300 301-500 501 and above LT II (a) .12 141.45 127.74 200.LT Industrial upto 20 kW LT IV .54 287.36 156.789.72 1.20-50 kW LT II (c) .819. 3.40 3.30 3.98 236. the growth in sales in other categories is higher than the small reduction in sales from residential (0-300) categories.63 1.99 123.69 198.0-20 kW LT II (b) .42 159.Advertisements and Hoardings 0.1.15 64.53 257.20 233.51 1.347. even though the number of consumers shows a reduction on absolute number basis.487.037. the number of customers in the residential (0-300) categories is more than thrice the number of consumers in other categories.29 218.02 1.44 3. there is an increase in sales despite the reduction in overall number of consumers.

06 22.89 FY 2015-16 60.5.5 Demand Side Management (DSM) Measures 3.Railways (New Category) Total .78 Consumer Category & Consumption Slab LT VI: LT -Street Lights LT-VII (A): LT -Temporary Supply Religious LT-VII (B): LT -Temporary Supply Others LT VIII: LT .88 0. The energy savings from various DSM activities and its Own Sales considering impact of DSM.40 534.347.03 4.51 1.1.04 6.46 0.28 160.06 0.Commercial HT III: HT-Group Housing Society HTIV : HT .218.027.97 6.94 0.59 22.37 274.09 267.492.352.Crematorium & Burial Grounds LT IX: LT -Agriculture Total.08 98.44 6.15 0.23 1.49 4.HT Sales Total FY 2013-14 57.Case No. 4441.01 FY 2015-16 0.73 1.30 214.70 0.4 Further.46 0.797.17 57.01 FY 2014-15 0.88 7.87 87.600.25 22.1.46 0.LT Sales HT I: HT-Industry HTII : HT.05 6.22 83.90 0.15 0.34 78.01 Page 54 of 302 .01 FY 2013-14 0.04 6.74 81.37 85.01 91.93 0.06 0.45 4.04 94.46 0.80 382.72 0. as a part of reply to data gaps raised by the Commission. for FY 2012-13.80 444.00 6.1.12 101.96 1. as submitted by RInfra-D is as given in the table below: Table 6: Energy Savings (MU) though DSM activities as submitted by RInfra-D Program T5 FTL Five Star Fans Five Star Split A/C Solar PV plant at Consumer Category Residential Residential (<500 units) LT – II <20kW LT – II <20kW FY 2012-13 0.079.1 RInfra-D submitted that it has continued its efforts to reduce the system demand and energy consumption through DSM initiatives.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period FY 2012-13 56.26 0.85 0.21 23.59 Crore (including incentives and disincentives).Temporary Supply HT .49 341. 3.06 0.06 0.36 FY 2014-15 58.25 57.96 4.32 MU and Rs.62 3.15 0.15 0.04 6.4. RInfra-D submitted provisional figures for month-wise Own Sales and revenue from sale of power as 6192.

87 6.Advertisements and Hoardings LT VI: LT -Street Lights LT-VII (A): LT -Temporary Supply Religious LT-VII (B): LT -Temporary Supply Others LT VIII: LT .93 0.60 3.12 101.56 59.036.43 179.29 218.92 1.44 3.23 274.71 1.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Consumer Category Residential Residential(<500 units) LT – II <20kW and LT –III (<20 kW) FY 2012-13 0.345.03 4.88 167.Commercial HT III: HT-Group Housing Society HTIV : HT .847.145.40 3.71 133.20 233.99 123.Temporary Supply FY 2012-13 0.078.65 191.93 268.45 4.817.116.788.Crematorium & Burial Grounds LT IX: LT -Agriculture Total.70 0.06 22.67 83.Below Poverty Line LT -I Residential (Single Phase) 0-100 101-300 301-500 501 and above LT -I Residential Three phase 0-100 101-300 301-500 501 and above LT II (a) .483.54 1.09 FY 2013-14 0.06 56.95 236.53 Program MIDC Five Star Refrigerators Five Star Fans – Ph II Five Star Split A/C – Ph II Total Table 7: Own Sales as projected by RInfra-D (considering impact of DSM) (MUs) Consumer Category & Consumption Slab LT I .23 57.36 85.17 151.49 4.03 120.99 64.51 1.79 195.00 253.30 214.66 1.86 FY 2013-14 1.81 3.65 61.26 0.04 161.LT Sales HT I: HT-Industry HTII : HT.72 0.25 FY 2015-16 0.31 145.74 205.485.LT Industrial upto 20 kW LT IV .04 6.211.88 0.94 0.04 1.25 22.75 288.343.34 186.23 1.54 1.60 1.05 1.73 1.09 284.LT Industrial above 20 kW LT-V : LT.40 58.282.0-20 kW LT II (b) .94 1.96 4.92 173.37 274.077.44 3.757.39 257.04 6.above 50 kW LT III .57 1.36 287.09 156.92 81.69 FY 2014-15 1.54 0.30 3.44 3.96 1.87 7.59 67.49 341.49 184.10 1.Case No.08 98.20-50 kW LT II (c) .90 0.05 1.59 22.21 23.36 198.51 141.53 FY 2015-16 1.71 200.01 91.06 150.34 131.04 1.59 60.412.18 205.00 190.80 159.05 6.26 1.17 286.21 87.28 160.17 FY 2014-15 0.18 0.87 7.04 94.06 246.04 6.85 0.45 127.34 Page 55 of 302 .

32 MU for FY 2012-13.00 6. which is as under: Particulars Own sales as per Business plan order of MERC (table 4.790. 2013 that this project is planned on a pilot basis for study purpose to demonstrate the feasibility of demand curtailment during peak hours.80 444.09 Consumer Category & Consumption Slab HT .1. which is as under: Table 8: Own Sales approved by the Commission (considering impact of DSM) (in MUs) Page 56 of 302 . the technology would be advocated in the licence area and consumers will be encouraged to install rooftop solar plants for the purposes of reducing grid dependency and demand management.5 kW Solar Power Plant at MIDC” under DSM activities/schemes.97 6. 3.80 382.68 FY 2014-15 57. 3.3 Hence. page 55) Own Sales as per RInfra-D MYT petition (table 38.2 The Commission has noted that for period from FY 2013-14 to FY 2015-16. page 78) Difference FY 14 6566 6594 28 FY 15 6797 6790 (7) In MU FY 16 7038 7020 (18) 3.Case No.88 7. the Commission has accepted and approves the Own Sales projected by RInfra-D.6. in response to the Commission’s query regarding classifying “7.40 534.5.36 FY 2013-14 57. 158 of 2011.Railways (New Category) Total . RInfra-D submitted vide its reply dated 11 February.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period FY 2012-13 267.1 The Commission has accepted the RInfra-D’s submission of actual total retail sales in its licence area as 6192.5. since year is already over and actual figures are available.6.1. there is a marginal variation in projected Own Sales in the MYT Petition as compared to the Order issued by the Commission in Case No.44 6.1.HT Sales Total 3.1.34 FY 2015-16 78.020.1.6.593. RInfra-D submitted that if reasonable energy savings are achieved and there is sufficient benefit of the project.346.2 Further.6 Commission’s Rulings 3.

96 4.79 Consumer Category & Consumption Slab LT I .HT Sales Total 1.05 6.80 444.40 58.60 205.116.17 286.81 3.30 214.036.59 67.45 4.44 3.26 0.04 161.05 1.05 1.93 0.30 3.88 7.345.00 253.45 127.09 156.65 61.04 6.90 0.37 274.25 57.34 131.04 94.21 23.04 6.65 191.0-20 kW LT II (b) .92 173.LT Sales HT I: HT-Industry HTII : HT.75 288.66 LT II (a) .483.51 141.020.Case No.74 LT -I Residential Three phase 0-100 101-300 301-500 501 and above 195.70 0.343.99 123.39 257.Crematorium & Burial Grounds LT IX: LT -Agriculture Total.17 151.96 1.34 186.23 1.23 57.1.99 64.59 60.36 198.18 205.04 1.Commercial HT III: HT-Group Housing Society HTIV : HT .08 98.4 For the purpose of estimation of Changeover Sales.077.23 274.93 268.26 1.36 287.88 0.36 85.34 1.40 534.71 FY 2015-16 0.92 200.6.12 101.49 341.593.817.above 50 kW LT III .49 4.Advertisements and Hoardings LT VI: LT -Street Lights LT-VII (A): LT -Temporary Supply Religious LT-VII (B): LT -Temporary Supply Others LT VIII: LT .LT Industrial upto 20 kW LT IV .43 179.57 1.847.94 0.LT Industrial above 20 kW LT-V : LT.97 6.00 6.59 22.Railways (New Category) Total .94 1.67 83.20 233.06 246. the Commission has considered same Changeover sales as approved in Order in Case 179 of 2011 in the matter of approval of ARR and Multi Year tariff of TPC-D for the second Control Period as tabulated below: Page 57 of 302 .21 87.68 1.34 78.412.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period FY 2013-14 0.09 3.73 1.20-50 kW LT II (c) .80 159.485.Below Poverty Line LT -I Residential (Single Phase) 0-100 101-300 301-500 501 and above FY 2014-15 0.211.17 57.25 22.80 382.790.Temporary Supply HT .06 150.788.

18 328.46% is higher than those considered in the Business Plan of 9.Residential LT II – Commercial LT – Industrial LT VII . This is on account of the issues in accounting of changeover sales such as: a) b) Large number of unbilled consumers by TPC-D.14 FY 2013-14 1136.6.69 408.18 351.18 287.01 412.1.12 0.40 17.18 307.66 17.2.2.93 0.76 0.05% considered in the Business Plan Petition.5 The same Changeover sales has to be approved by the Commission at the distribution periphery of RInfra-D for RInfra-D for the period FY 2012-13 to FY 2015-16. as both the sales figures have to be identical and no variation is acceptable.88 0.88 0.23 574.1.34 0.18 4208.Group Housing Society HT VI . 124 of 2012 is 9.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Table 9: Changeover Sales approved by the Commission in Case 179 of 2011 (in MU) Category LT 1 . No proper data sharing between RInfra-D and TPC-D and settlement of Page 58 of 302 .1 Distribution Losses for period from FY 2012-13 to FY 2015-16 3.88 0.00 672.18 3873. In the Business plan Petition for the second control period of RInfra-D the distribution loss for FY 2011-12 was provisional and was considered equivalent to the loss level of FY 2010-11 as the energy balancing under FBSM was held up since August 2011 on account of various constraints and issues.18 3328.Temporary Supply LTV.Case No.08 605.46% compared to 9.12 0.05% for the same period.1. 3.31 638.1 RInfra-D submitted in its MYT Petition that actual distribution loss for FY 2011-12 as mentioned in the True-up Petition in Case No.12 0.2 Distribution Losses 3. 3.88 0.2.95 FY 2015-16 1539.66 1211.06 1139.12 0.18 3547.07 FY 2014-15 1338.46 1070.Temporary Supply Grand Total FY 2012-13 1035.2 RInfra-D further submitted that the actual distribution loss of FY 2011-12 of 9.69 415.10 17.48 405.12 0.44 3.Advertisement HT I – Industrial HT II – Commercial HT III .55 17.66 1006.

RInfra-D own consumers (MU) Energy consumption by Open Access consumers (MU) Energy sold – Changeover consumers (MU) Total (MU) Distribution loss (%) T<>D Energy input (MU) FY 2011-12 6.4 RInfra-D further submitted status of the Commission’s direction in Case No. it is presently not considered by the Commission in this Order.73 9.2.995.654. no reduction in losses of 9. for the purpose of estimation of Aggregate Revenue Requirement and Tariff for the second MYT Control Period. the study is submitted to the Commission on 29 May. However.33 9.79 Page 59 of 302 . Further. Since distribution loss is one of efficiency parameter and the study report and its findings were not made available before the Public consultation process and hence.2.93 8 .46% is anticipated till FY 2013-14 but losses shall reduce by 0.050. 3.Case No. c) Mismatch in reading cycles for several types of consumers between the two licensees and issues relating to multiplying factors.1. RInfraD submitted that it has awarded the assignment of technical loss study to the Administrative Staff College of India (ASCI) and was carrying out the study till May 2013.36% in FY 2015-16. as submitted by RInfra-D in the True-up petition in Case No.5 The detailed computation for distribution loss for FY 2011-12. 3.386. 124 of 2012 is as given in the table below: Table 10: Actual Distribution Loss of FY12 as submitted by RInfra-D Particulars Energy sold .9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period difference in readings.1.46% 9. 3. 180 of 2011 regarding carrying out a study of technical losses in RInfra-D system.66 2. RInfra-D may submit the report along with proper justification at the time of mid-term performance review for the consideration of the Commission.1.3 RInfra-D submitted that it has considered the actual loss level for FY 2011-12 as the base level for the MYT Period. 2013.05% in the last two years to reach 9.2.

2.7 In reply to the Commission’s query regarding reduction of 0.46% FY 2013-14 9.2.2.2 The Commission in its Order dated 23 November.2.2.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 3. Therefore. 3.1. 158 of 2011 Year wise Distribution Loss reduction Trajectory FY2012-13 0% FY2013-14 0% FY2014-15 0.2.Case No. However. as at the time of issuance of the Order. 158 of 2011 has approved a distribution loss reduction trajectory as under: Table 12: Distribution Loss reduction trajectory approved by the Commission in Case No.46% FY 2014-15 9.2 Commission’s Rulings 3.2.05% based on actual distribution loss of FY 2010-11. RInfra-D submitted vide its reply dated 12 February.1. a moderate reduction in distribution losses has been forecast in the last two years of the MYT Period. 2012 in Case No.1 The Commission in its Order dated 23 November 2012 in Case No. Page 60 of 302 . the actuals of FY 201112 were not available.6 The Distribution loss trajectory as submitted by RInfra-D for second Control Period in its MYT Petition is as given in the table below: Table 11: Distribution Loss Trajectory as submitted by RInfra-D for the 2nd Control Period Loss Levels Distribution Loss FY 2012-13 9. 2013 that there could likely be an increase in the loss levels considering that the mix of consumers served on the network could worsen as more change-over consumers opt for conversion to Group III (switchover to TPC-D network).36% 3.05% in the Distribution loss in the last two years. 158 of 2011 has approved distribution loss of FY 2012-13 as 9.05% 3.41% FY 2015-16 9. this effect could be offset in the later years of the MYT Petition as a result of Capex interventions as well the fact that new consumers added to RInfra-D network could balance the degradation in the consumer mix.05% FY2015-16 0.

as a part of its MYT Petition. i. the Commission in the present Order has considered the actual distribution loss of FY 2011-12 as base for approving the distribution loss for the second Control Period as under: Table 13: Distribution Loss Trajectory approved by the Commission for the 2nd Control Period Year wise Distribution Loss Target FY 2012-13 9.2. RInfra-D submitted the impact for FY 2009-10.2. 180 of 2011. i.06 Page 61 of 302 . the Commission in its Order dated 4 April 2013 in Case No.46% FY 2013-14 9. 3. FY 2010-11 and FY 2011-12 as given in the table below: Table 14: Impact of Appeal No.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 3.3.2. the Commission enquired about the impact of RInfra-D contention in Appeal No.92 11. technical and commercial losses to its Own and Wheeling Consumers.Case No.3 Subsequently. impact of all distribution losses i.46 % based on actual distribution loss. Cr) Impact Summary Impact on own consumers due to additional power purchase / lower increment to the Imbalance Pool Impact on own consumers due to lower recovery of wheeling charges from change-over consumers FY FY FY 2009-10 2010-11 2011-12 2.3. 3. 124 of 2012 has approved distribution loss of FY 2011-12 as 9..3 Energy Balance and Power Purchase Requirement 3.94% for all the years in the second Control Period..36% 3.1 Energy Balance from FY 2012-13 to FY 2015-16 3.1 RInfra-D submitted that the energy balance and power purchase forecast is prepared considering the view of the Commission in its Order in Case No.25 3.e.2.00 0.26 6. In reply. 160 of 2012.4 Hence. 160 of 2012 as submitted by RInfra-D (in Rs.e.46% FY 2014-15 9. the wheeling losses for LT are considered at 9% and that for HT at 1.3.41% FY 2015-16 9.2 As a part of data gaps..1.e.1.50 0.

71 204.09 1.Case No.568.790.40 9.312.68 208.00% 9.3 RInfra-D submitted that for FY 2011-12 it has considered transmission losses at actuals.19 469.78 6.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period FY FY FY 2009-10 2010-11 2011-12 2.77 Migrated LT sale 2.00% LT grossed up energy at T-D boundary 2.36 3.1.21 586.076.3.94% 1.76 7.94% HT grossed up energy at T-D boundary 875.39 7.105.03 LT loss (%) 9.41% 8.46% 10.00% 9.83 Page 62 of 302 .46% 9.1.18 6.25 7.36 344. 158 of 2011.684.53 378.07 7.346.3.46 1.00% 9.84 200.566.43 14.076. the transmission losses are projected at 4.407.68 1.160.01 357.30 9.85% as considered by Commission in the Business Plan Order in Case No.422.215.020.36% 8.97 562.95 204.31 23.437.012.94% 1.316.4 RInfra-D submitted the Energy Balance and Power Purchase requirement for the Second Control Period as given in the table below: Table 15: Energy Balance for Second Control Period (MU) as submitted by RInfra-D FY FY FY FY Particulars 2012-13 2013-14 2014-15 2015-16 Sales (Own) Sales (changeover) Total Distribution Loss (%) Energy Input to the Distribution System 6.350.94% 1.09 548. 3.593.66 325. Further.98 Impact Summary Total Cumulative Total 3.66 9.50 8.65 1.218.34 526. from.72 HT Loss (%) 1.45 Table 16: Power purchase requirement for second Control Period (MU) as submitted by RInfra-D FY FY FY FY Particulars 2012-13 2013-14 2014-15 2015-16 Migrated HT sales 858.06 Total T-D energy attributable to Migration 3.84 9.21 460.17 9. FY 2012-13 onwards.

897.53 4.763.19 FY 2015-16 7. for the purpose of this Order.31% 4.85% 7.3 As evident from the above Table.3. 3.61 4. The Transmission loss trajectory for past few years as available on MSLDC website is shown in the following Table: Table 17: InSTS Transmission Losses as per MSLDC website (%) FY Particulars 2008-09 2009-10 2010-11 2011-12 2012-13* Transmission Losses 4.34 Particulars Net T-D energy attributable to RInfra-D sale InSTS losses (%) Total power requirement of RInfra-D 3.2.Case No. considering that a higher transmission loss level will result in over-estimating the energy requirement and increase the burden on the consumers.094.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period FY 2012-13 7. the Commission has considered Transmission losses at 4.2.88% *Up to December 2012 4.15 FY 2013-14 7.85% 7.3.3.17% (actuals for FY 2011-12) for each year of the Control Period Page 63 of 302 .2 Commission’s Rulings 3.94% for all the years in the second Control Period. Transmission losses have been decreasing and hence.82 4.3.327. Further. as submitted by RInfra-D in its MYT Petition.514.2 Further.1 The Commission has approved the energy balance and power purchase considering the wheeling losses for LT are considered at 9% and that for HT at 1.85% 7.456. the Commission finds no merit in approving the Power Purchase requirement at G <> T interface with the same transmission loss as approved in the past and subsequently having to change the same at the time of Truing-Up.18 4. the Commission has observed that the transmission loss trajectory since past few years has been decreasing.2.19% FY FY FY FY 3.701.33 FY 2014-15 7.85% 8.59% 4.159.17% 4.

46% 10920 FY 2014-15 6.00% 2617 3547 965 1.887 9.790 3.00% 2890 3874 1021 1.903 10.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 3. approved by the Commission.94% 1041 2883 9. is as under: Table 18: Energy Balance approved by the Commission (MU) Particulars Sales (Own) Sales (changeover) Total Distribution Loss (%) Energy Input to the Distribution System FY 2013-14 6.923 9.17% 7920 7843 4.4 Power Procurement Plan and Expenses Page 64 of 302 .17% 7694 7590 4.36% 12051 Table 19: Energy Requirement approved by the Commission (MU) Particulars Energy Input to the Distribution System Changeover HT sales HT Wheeling Loss Changeover HT sales grossed up to at Distribution Periphery Changeover LT sales LT Wheeling Loss Changeover LT sales grossed up to at Distribution Periphery Total T-D energy attributable to Changeover Sales Net energy attributable to RInfra-D retail sales at Distribution Periphery InSTS losses % Total Power Purchase Requirement of RInfra-D (MU) at Transmission periphery UoM FY 13-14 FY 14-15 FY 15-16 MU 10920 11464 12051 MU % MU MU % MU MU 912 1.Case No.385 9.17% 8184 3.293 9.594 3.595 10.2.94% 930 2382 9.4 The Energy Balance and Power Purchase requirement for the period from FY 201314 to FY 2015-16.3.00% 3168 4208 MU % MU 7373 4.020 3.94% 984 2630 9.41% 11464 FY 2015-16 7.

4 Base Load Generation Capacity assures the reliable and Continuous availability of supply.1. Base Load is considered as the lowest requirement as per the Load Duration Curve or it could be considered as the load.1.1 RInfra-D submitted that it has forecasted Base Load and Peak Load in MW on the basis of its sales forecast and energy input requirement at the G<>T boundary.1 Estimation of Base and Peak Load 3.4.4. Using the energy input at G<>T in MU forecast in the Business Plan. The Maximum demand corresponding to RInfra-D customers is then obtained by applying a representative system load factor to the average demand. RInfra-D submitted that it has done an analysis of the surplus and shortfall based on the Generation capacity for various levels to meet the requirement for FY 2014-15.1.Case No. 3.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 3. in winters.3 RInfra-D submitted that it has to plan the power purchase such that Consumers of Mumbai are assured of continuous supply. Hence. whereas in peak summers.4. Further there are large variations in the short term power rates which in turn may result in the increase in the power purchase cost. RInfra-D submitted that its load duration curve varies significantly between day and night hours and over seasons. the same is converted to average demand in MW. However.4. The load factor for the period from FY 2012-13 to FY 201516 is estimated based on the average of the load factors for the five year period from FY 2006-07 to FY 2011-12. For instance in FY 2011-12.4. load goes down to as low as 350-400 MW in late night hours.2 RInfra-D further submitted that the varying nature of load during the day time and across different seasons poses difficulty in planning the supply side (Generation) to meet the demand with assured availability and optimum cost. 3. 3. the surplus and shortfall will be manageable during the real time operation period and the entire operation is cost effective. there is no single Base Load or Peak Load value for RInfra-D’s system. minimum load would hover around 900 MW. which is incident on the system for majority of time. Monsoon season requirement is in between the two. Page 65 of 302 .1.

For the period FY 2013-14.74 901. 3.5 RInfra-D submitted that from the above figure that the surplus/shortfall position is optimal i. rest of the Base demand would be met through existing medium -term contracts with Wardha Power Company Limited.7 RInfra-D submitted that the power procurement for meeting base load would be done through a mix of long-term contracts.15 68% 1251. Further.1.4.. AMENPL and VIPL) FY 2014-15 7897.5%. RInfra-D has considered 85% of assured availability from the generators. RInfra-G’s Dahanu Thermal Power Station would cater to a part of the base load requirement of RInfra-D.1.Case No.7 851.75 931. 530 566 considering 85% availability # As per RInfra-G MYT Petition (Case No. 1 of 2013) – actual energy as per the Petition converted to equivalent MW *After subtracting normative auxiliary consumption of 8.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 3.4. Page 66 of 302 .16 467# 384 (met through contracts of WPCL.6 The corresponding Base and Peak Load for the control period as submitted by RInfra-D is as given in the table below: Table 20: Base and Peak Load Estimation and additional capacity requirement for Second control period (MU) as submitted by RInfra-D Particulars Power Purchase requirement (MU) System Load Factor (%) Peak Demand (MW) Average Demand (MW) =Base Demand (MW)) DTPS Capacity Additional Capacity requirement (MW) –(Base Demand – Base capacity contracted) FY 2012-13 7456. 1 of 2013) 3. @ 68% if the capacity is contracted around the average load.4.AMENPL and VIPL) FY 2013-14 7701.e. and medium-term contracts.43 451* 451 481 Capacity to be contracted.33 68% 1292.15 451* 428 (met through contracts of WPCL.34 68% 1369. plus actual of FGD as projected in MYT Petition of RInfra-G (Case No.19 68% 1325. Therefore RInfra-D has considered the average Load as the Base Load for arriving at the Base Load Capacity requirement for each year of the MYT Period in its Petition.86 879.1.51 451* FY 2015-16 8159.

the net availability from VIPL would be approximately 540 MW.4. After subtracting auxiliary consumption. 3. as the Peak Demand is not being used to derive Base Demand. Renewable energy from Solar has been considered by RInfra-D towards meeting peak load requirement. the value of load factor is not very relevant.1. the Base Demand is considered same as Average Demand and thereafter.1. demand profiling is done on an hourly basis for each year of the MYT Control Period to arrive at the short-term power requirement and surplus power availability at various times of day.1.4. The plant is located at Butibori.4.49% considering past few years’ data and it is only to arrive at Peak Demand from Average Demand. while 72% was considered in the Business Plan. the peaking requirements of power would be met through short-term purchases from the external market as well as separate contracts with traders. RInfra-D submitted vide its reply dated 12 February.9 RInfra-D further submitted that the requirement over and above the base load i. while also adding to purchases made to meet base and peak load requirements. merchant and captive power plants as well as inter-utility transfer through the state imbalance pool. 3.10 Further.8 In order to meet the base load requirement from FY 2014-15 onwards. in the MYT Petition. Nagpur. in reply to Commission’s query regarding consideration of different System Load Factor of 68% for Power Procurement Plan in the MYT Petition.e. These medium-term contracts are valid till FY 2013-14. 3.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Abhijeet MADC and VIPL’s Butibori plant. 3. 2013 that its system load factor is about 68. However.4.2 Procurement from Dahanu TPS (DTPS) Page 67 of 302 . Power Exchanges. Renewable energy will also be procured to meet Renewable Purchase Obligation (RPO) targets as specified by the Commission. In that context. RInfra-D submitted that it has entered into a long-term contract with VIPL for procurement of 600 MW of power.Case No..

98 Total Variable Cost (Rs.02 1.2. It is a long-term contract for delivery of all generated energy to RInfra-D from 2 X 250 MW units at the tariff determined by the Commission for RInfra-G.088.59 1.93 2. 8 of 2008.9 9.303.Case No.3 The summary of the energy availability and cost of power purchase from DTPS as submitted by RInfra-D is given in the tables below: Table 21: Energy Availability from DTPS as submitted by RInfra-D DTPS Capacity available (MW) Availability (%) Auxiliary Consumption (%) FY 2012-13 FY 2013-14 FY 2014-15 500 95.798.55 Page 68 of 302 . Crore) 1.79 344. projected auxiliary consumption and 95. energy availability has been determined considering 500 MW installed capacity.83 3787.89 9.478. 3.133.4. Crore) 1.13* Energy availability (MU) 3997.87 2.437.1 RInfra-D submitted that RInfra-G’s Dahanu Thermal Power Station shall cater to its base load requirement. 3.83 3787.90% availability.4.79 500 95.087. It has entered into a 10-year Power Purchase Arrangement with generating station at Dahanu (DTPS or RInfra-G).9 9.2. 1 of 2013.2.6 500 95. The arrangement has been approved by the Commission vide its Order in Case No.63 Total Cost of Power (Rs.2 RInfra-D submitted that for the period from FY 2012-13 to FY 2015-16.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 3. per kWh) 2.4.10 1. Crore) 216.06 1.6 FY 2015-16 500 95.43 328.61 436.109.9 9.82 3.72 2. The referred Petition of RInfra-G contains estimated energy availability from DTPS for FY 2012-13 based on 9 month actuals and thereafter.37 *One day extra generation due to leap year Table 22: Cost of Power Purchase from DTPS as submitted by RInfra-D FY FY FY FY DTPS 2012-13 2013-14 2014-15 2015-16 Fixed Charges (Rs. the energy availability and cost of power purchase from DTPS is based on the projections provided in RInfra-G MYT Petition in Case No.525.90 1.92 Rate of Energy Charges (Rs.67 1.

The Commission has considered the actual power purchase cost for FY 2012-13 from DTPS as submitted by RInfra-D.2 RInfra-D submitted that it has considered power purchase from WPCL in accordance with specified quantum and at the rate adopted by the Commission’s Order under Case No. Page 69 of 302 .309.4. Abhijeet MADC and Vidarbha Industries Power Limited (VIPL).95 3.85 of 2011 dated 1 July.787. 2011. in reply to the details sought regarding the actual power purchase cost for FY 2012-13. 2013 in Case No.46 3.3.43 3.70 3.994.787.60 3.449. Crore 1.2.4.6 The summary of the energy availability and cost of power purchase from DTPS as approved by the Commission for each year of the MYT Second Control Period is given in the Table below: Table 23 Power Purchase from RInfra-G for FY 2012-13 to FY 2015-16 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 Approved after Approved Approved Approved Provisional Truing up Power Purchase QuantumMU 3.1 RInfra-D submitted that it has existing medium-term power procurements contracts with Wardha Power (WPCL). 1 of 2013 in the matter of Petition filed RInfra-G for approval of ARR and determination of tariff for MYT Second Control Period from FY 2012-13 to FY 2015-16.4.3.400. RInfra-D provided the actual power purchase cost from DTPS.3 Procurement from Medium term Contracts (upto FY 2013-14) 3.82 Power purchase from RInfra-G Unit 3.5 As regards power purchase from RInfra-G for the period from FY 2013-14 to FY 2015-16. the Commission has considered the net energy available from RInfra-G and cost of power purchase in accordance with the Commission’s Order dated 13 June./kWh 3.798.2.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 3.Case No. 3.4.27 Average Rate Rs. 3.2.60 3.28 1.370.66 1.4.4.13 Power Purchase Cost Rs.4 Subsequently.68 1. 3.

Case No.6 RInfra-D further submitted that WPCL has filed a Petition before the Commission bearing Case No.53 997. 2014 for the Contracted Page 70 of 302 .935.96 409. RInfra-D submitted that it has considered procurement of 134 MW from 1 April. 3. 2012 up to 31 March. 2010.6 Crore has been made by WPCL on account of Change in Law for the period April 2011 to March 2012 broadly classified under the following four heads: a) Excise Duty on Coal consumed.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 3. 2011 to 31 March.5 The summary of power purchase from above mentioned sources till FY 2013-14 as submitted by RInfra-D is given in the table below: Table 24: Energy availability from Existing Medium Term Contracts (MU) as submitted by RInfra-D Source FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 Wardha (MW) 260 260 Abhijeet (MW) 55 55 VIPL (MW) 134 134 Wardha (MU) Abhijeet (MU) VIPL (MU) 1.935.3 Further. 39 of 2012 wherein purported claim of Rs 27. 3.3.3.96 409.53 997.3. 106 of 2011. 3.76 - 3.7 RInfra-D submitted that it has executed PPA with WPCL dated 4 June.3. RInfra-D submitted that it has considered the power purchase from Abhijeet MADC for the period 1 July.4. 2011 up to 31 March.84 of 2011 dated 1 July.4. for the period commencing from 1 April.4. 2014 at the rates adopted by the Commission vide its Order under Case No.76 1.3.4 In case of power purchase from VIPL. 2014 in accordance with the judgment of the Hon’ble ATE in Appeal No.4. Clean Energy Cess on Domestic Coal consumed b) VAT on Domestic Coal consumed c) VAT on LDO and HFO consumed d) Customs duty on Generation using Imported Coal e) VAT on Spares consumed. 2011.4.

46 Crore is considered in the MYT Petition for FY 2012-13. 19. 14.6 Crore for FY 2011-12. 3. This matter is sub-judice before Commission for adjudication and any future payments will be based on the outcome of Case No.46 Crore for FY 2013-14 as well.10 RInfra-D submitted that further claim of Rs.2 of PPA. 3. the same change in law impact will cause an additional liability of Rs.7 Crore was raised by WPCL for the period April 2012 to September 2012. Such taxes should have been introduced 7 days prior to the Bid Deadline. 3.1 and 10.Case No. 26. Page 71 of 302 .4. 3.11 RInfra-D submitted that.3. 19. during the hearing held in the Case No.5 Crore as undisputed amount till date. 10 Crore and subsequently make payment which is undisputed as per RInfra-D. 39 of 2012. 2012.3. 14. 39 of 2012 dated 2 November. RInfra-D submitted that it has made payment of Rs.4. 27. since power will be off taken from WPCL during FY 2013-14 as well. As against the total claim of Rs.3. The same is accordingly added to the power purchase cost of FY 2013-14. As the payment has been made in FY 2012-13 and included in the Fuel Adjustment Cost (FAC) of FY 2012-13. directed RInfra-D to immediately make payment of Rs.4. an additional payment of Rs. As per Articles 10.9 The Commission.1. against which RInfra-D has made payment of Rs 7. RInfra-D submitted in its MYT Petition that the same liability is expected for the second half of FY 2012-13.5 Crore (pertaining to FY 2011-12). Consequently. it is liable to pay only the non-escalable capacity and energy charges.3. any liability on RInfra-D by reason of introduction of any tax would be restricted to such taxes being applicable to the tariff payable by the Respondent under the PPA so as to restore the Petitioner to the same economic position as if such taxes/levies had not been levied 7 days prior to the Bid Deadline.8 RInfra-D submitted that it has contended before the Commission that in view of the provisions in the PPA.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Capacity of 260 MW. supplier is entitled to any additional recurring/nonrecurring expenditure by reason of introduction of taxes which are made applicable which were not contemplated by the supplier at the time the bid was submitted by the supplier pursuant to which the PPA was entered into. over and above the payment of Rs. Hence.4. RInfra-D has considered the same in the present MYT Petition.23 Crore.

45 197. PPAs entered into have been approved by the Commission and Tariffs have been adopted as per Section 63 of the Act. GoI..3.2 The Commission noticed that RInfra-D has considered the rates for power purchase from Wardha Power Company Ltd. 3.3.07 497.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 3.04 1.1 Subsequently. RInfra-D submitted that it has entered into MediumTerm PPA with Wardha. Abhijeet and VIPL pursuant to competitive bidding process undertaken as per guidelines issued by the Ministry of Power.03 Abhijeet 1. 3.75 FY 2014-15 FY 2015-16 - 3.78 FY 2013-14 793.13 The summary of fixed and variable charges from already existing medium term contracts till FY 2013-14 as submitted by RInfra-D is as given in the table below: Table 25: Tariff Rates for Medium term contracts as submitted by RInfra-D Source FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 Fixed Charges (Rs Crore) Wardha 788.96 Cr ** includes an additional liability of 14. Abhijeet and VIPL. Page 72 of 302 .15 VIPL 394. Crore) as submitted by RInfra-D Source Wardha Abhijeet VIPL FY 2012-13 986.44 * includes fixed cost of 755.02 Cr and a charge due to change in law of 33.68 177.9 101.4.3.4. The Commission has considered the actual power purchase cost for FY 2012-13 from these sources as submitted by RInfra-D.27 Variable Cost (Rs.81 1.3.88 VIPL 1.94 511.02 1.98* 595.25** Abhijeet 122. per kWh) Wardha 1.46 Cr due to change in law Table 26: Cost of Power Procurement from Medium Term Contracts (Rs. Abhijeet MADC Nagpur and VIPL as adopted by the Commission and accordingly approves the same. in reply to the details sought regarding the actual power purchase cost for FY 2012-13.4.Case No.4.12 As a part of data gaps replies.22 368. RInfra-D provided the actual power purchase cost from Wardha.

4.35 1.039.935.4.001. 3.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 3.49 1.62 409..4.001.27 4. there would be a significant shortfall in base load supply without additional power procurement. 3.4.97 204. R-Infra D submitted that it is considering to procure 600 MW from Vidarbha Industries Power Limited (VIPL) from FY 2014-15 onwards.4.4.05 5. 2012 to the Commission bearing Case No.94 4.4 Procurement from Vidarbha Industries Power Limited (VIPL) 3.3 The summary of the energy availability and cost of power purchase from Wardha Power Company Ltd.Case No. Abhijeet and VIPL Particulars Unit WPCL Abhijeet VIPL Approved Approved Approved Approved Approved Approved after after after Provisional Provisional Provisional Truing up Truing up Truing up FY 2012-13 FY 2013-14 FY 2012-13 FY 2013-14 FY 2012-13 FY 2013-14 Power Purchase Quantum Power Purchase Cost Average Rate MU Rs.91 793. 2 of 2013.4.75 5.68 4.10 441. for the period FY 2014-15 onwards.3.96 1. Abhijeet MADC Nagpur and VIPL as approved by the Commission for each year of the MYT Second Control Period is given in the Table below: Table 27 Power Purchase cost as approved for WPCL.3 RInfra-D submitted following key reasons for procuring power from VIPL: Page 73 of 302 .05 510.76 511.4./kWh 2. Net energy availability from VIPL after subtracting auxiliary consumption would be about 544 MW. Crore Rs. A Petition for approval of Long Term PPA between RInfra (Mumbai Distribution) and VIPL and determination of Provisional Tariff for VIPL’s Butibori Plant was submitted on 28 December.1 RInfra-D submitted that since the existing medium term contracts are applicable till FY 2013-14. The additional quantum required in FY 2014-15 is about 530 MW.2 To meet this shortfall.10 997.13 3.53 177.85 4.

c) No risk of delay in commencement of supply as the plant is expected to be commissioned much earlier than the committed date of commencement of supply. b) Unit-I synchronisation achieved on 25 June. supply from Butibori ensures reliable and long-term supply and hence energy security for millions of consumers in RInfra-D license area in Mumbai. 2011 i. This ownership structure provides RInfra a greater control over VIPL functioning and secures stronger contractual commitment on the part of VIPL.4. 3.. Combined with DTPS. However. Further. 2013 to RInfraD. no infirm power was purchased by RInfra-D during trial period during FY 2012-13. for which SLDC has not yet finalised the FBSM because of which no revenue Page 74 of 302 .Case No. the tariff has also been found to be competitive with Case 1 tariffs discovered in Maharashtra and more recently in UP. the availability for the station has been projected by RInfra-D in accordance with MERC MYT Regulations. 2003 also ensures that benefit of lower price of power is transparently passed on to retail consumers. 2013 to 4 April. d) Any bid process to procure power by competitive bidding would have a lead time of 48-60 months. 2013. Further. from Unit-1. b) Tariff proposed by VIPL is in line with that of other cost plus generating stations that have recently been commissioned and approved by the Commission. e) RInfra has indirect majority ownership of Butibori project.e. f) VIPL’s offer to RInfra-D for supply under tariff determined by the Commission under Section 62 of EA. whereas the long-term supply from VIPL would commence from 1 April. In a domestic coal supply constrained market.4 As regards to the Commission’s query regarding power purchase from VIPL. RInfra-D submitted that VIPL sold infirm power for the period from31 March. this aspect completely aligns VIPL offer with interests of millions of RInfra electricity consumers in Mumbai. RInfra-D replied as given below: a) On account of absence of any performance track record available for VIPL.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period a) Power procurement of the utility has to be from a reliable and competitive source. 2014. Thus reliability of supply from Butibori project of VIPL will be comparable to that from DTPS. 2012 and COD achieved dated 4 April.4. 85% during FY 2014-15 and FY 2015-16.

58 3. c) Unit-II synchronisation achieved on 2 January.22 1384. d) Annual Fixed Charges is Rs.91* Table 29: Power Procurement Cost from VIPL for FY 15 & FY 16 as submitted by RInfra-D Source Capacity charge (Rs Cr.5 The summary of Power Purchase from VIPL’s Butibori Plant for FY 2014-15 and FY 2015-16 as submitted by RInfra-D is given in the table below: Table 28: Power purchase quantum from VIPL for FY 15 & FY 16 as submitted by RInfra-D Source Capacity available (MW) Availability (%) Auxiliary Consumption (%) VIPL *One day extra generation due to leap year FY 2014-15 600 85% 9.87 FY 2015-16 876. e) Energy Charge is Rs.92 Crore for FY 2014-15 and FY 2015-16 respectively for installed capacity of 600 MW. 1. the Commission hereby accords its in-principle approval to the Power Purchase Agreement (PPA) between RInfra-D and VIPL for Page 75 of 302 .30/kWh for FY 2014-15 and FY 201516 respectively.04 1. 891.40% 4. 2013 and COD is likely to happen shortly. 1. RInfra-D submitted that it would not be possible to estimate the generation for Unit-II during trial period.Case No.4.058.4.6 As regards the procurement of power from VIPL’s Butibori Plant for FY 2014-15 and FY 2015-16.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period realisation happened to VIPL.92 1.82 FY 2015-16 600 85% 9.) Energy Charge( Rs per kWh) Total Cost (Rs Cr. 3. 876. the Commission in its Order dated 23 February. 2013 in Case No.047. 02 of 2013 stipulated as under: “In view of the above.40% 4.4.3 1404.) FY 2014-15 891.4.04 Crore and Rs. Further.22/kWh and Rs.

Case No.4. the Petition submitted by RInfra-D and VIPL for approval of PPA complies with Regulation 25. As regards the purchase rate for power from VIPL. 2011. the Commission in the said Order ruled as under: “the Commission is prima facie of the view that the PPA between RInfraD and VIPL with tariff to be determined by the Commission in accordance with the MERC MYT Regulations.4. 2013 with modifications to be made in the PPA as per the directions given by the Commission in Para 44 of the Order.” 3.4.4. the Commission in the above mentioned Order ruled as under: “During the hearing before the Commission Shri. the Commission has provisionally considered the rate of power purchase from VIPL Unit-2 based on the rates as submitted by RInfra-D since the approval of final tariff for VIPL is yet to be accorded. referred to an MOU for setting up of a 130 MW Group Captive Page 76 of 302 .” 3.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period procurement of 300 MW power on long-term basis from Unit 2 (IPP) of VIPL’s Power Station as submitted by the Petitioner on 15 February. as compliance of this order within one month from the date of this Order. the Commission has considered the procurement of power from Unit-2 for the period from FY 2014-15 to FY 2015-16.4.9 As regards the procurement of power from Unit-1 of VIPL. on Cost plus basis by applying critical prudence checks while examining the tariff proposal. Bushan Gagrani.2 (c) of MERC MYT Regulations. The Commission directs the Petitioners to submit the final PPA executed between RInfra-D and VIPL for procurement of 300 MW power on long-term basis from Unit 2 of VIPL’s Power Station after incorporating the above-stated modifications.8 Accordingly. As the PPA between RInfraD and VIPL provides for determination of tariff in accordance with MERC MYT Regulations. 3. CEO of MIDC.7 In accordance with the decision of the Commission for in-principle approval of PPA for 300 MW Unit-2 on long-term basis. will help RInfra-D to meet the energy requirement of its consumers.4.

in view of the bid conditions. The said meeting with industries/industry associations to participate in GCPP was conducted on 22/05/2013 in which industries have expressed their unwillingness to participate at this juncture as according to them participation in GCPP is not attractive and workable in present scenario. through the present Petition. the board item was placed before 349th Board meeting of MIDC held on 08/02/2013. once these issues are sorted out. In the meeting it was decided to issue directives to obtain legal opinion and conduct the separate meeting with industries/industry associations to participate under GCPP.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Power Project (subsequently converted into a 300 MW GCPP). 02 of 2013 to the PPA pertaining to Unit 2 in view of the pendency of the approval of conversion of Unit 1 from GCPP to IPP. the Commission has.4. MIDC vide its letter dated 18 May. may amount to changing the character of the power plant from a Group Captive Power Plant to an Independent Power Project. Considering these facts and submissions made by MIDC and the Petitioners regarding conversion of Unit 1 from GCPP to IPP. considered the PPA for supply of power from Unit 2 of VIPL to RInfra-D.10 Subsequently.Case No. This Commission has not been called upon. During the hearing. 2013 submitted as under: “In view of the facts and status mentioned in VIPL’s letter dated 18/01/2013. He has also submitted that the MIDC Board is in the process of obtaining a legal opinion in regard to the conversion of Unit 1 from Group Captive Power Plant to Independent Power Project. at this stage. according approval of sale of power from Unit 1 to RInfra-D. Hence. On obtaining the legal opinion and conclusion of meeting dated 22/05/2013 with industries/industry associations.” 3. the issue was discussed Page 77 of 302 .4. to decide the issue of conversion of Unit 1 from a Group Captive Power Plant to an Independent Power Project. The Petitioners may file an appropriate application /Petition for approval of supply of power from Unit 1 of VIPL to RInfra-D. it was submitted on behalf of the Petitioners that approval may be given only Case No.

58 3. Crore Average Rate Rs.46 Power Purchase Quantum MU Power Purchase Cost Rs. Further.047.404.87 3.047. subject to final approval by the Commission.384.5 Procurement from Renewable Sources 3.4.87 3.058.1 Every “Obligated Entity” shall procure electricity generated from eligible renewable energy sources at the percentages as per the following schedule: Page 78 of 302 .9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period in 351st Board Meeting held on 24/05/2013. is in line with the MERC (Renewable Purchase Obligation. 2010.42 4. for the purpose of estimation of Power Purchase availability.4.12 The summary of the energy availability and cost of power purchase from both Units of VIPL as submitted by RInfra-D and approved by the Commission for each year of the MYT Second Control Period is given in the Table below: Table 30 Power Purchase from VIPL for FY 2014-15 to FY 2015-16 Power purchase from VIPL Unit FY 2014-15 FY 2015-16 RInfra-D Approved RInfra-D Approved 4.404. the Commission has considered the purchase of power by RInfra-D from 300 MW Unit-1 for FY 201415 to FY 2015-16.058.46 4. which specifies the following percentage of minimum purchases from renewable energy: “7.4. The Board has accorded its approval for conversion of 300 MW GCPP into an IPP.91 1. on ad-hoc basis.” 3. Its Compliance and Implementation of REC Framework) Regulations.4.82 1. 3.4.91 1.58 3./kWh 3.4.42 4. the Commission has provisionally considered the rate of power purchase from VIPL Unit-1 based on the rates as submitted by RInfra-D.384.5.11 Considering the fact that MIDC has submitted that its Board has accorded its approval for conversion of 300 MW GCPP into an IPP.1 RInfra-D submitted that the quantum of the renewable energy purchased to meet the Renewable Purchase Obligations (RPO).Case No.82 1.

0% 0.” 3. 101 of 2012 in which the Commission directed RInfra-D as: “RInfra-D is directed to fulfil its RPO target for Solar and Non-Solar RPO for FY 2010-11.51 FY 2014-15 7.159.2 Based on the above mentioned Regulations.75% 6.50% 9.50% 40.Solar Total (other RE) 0.80 3.1% per year of its Non Solar including mini and micro hydro (other RE) RPO obligation for the period from FY 2010-11 to FY 2012-13 and up to 0.4.75% 7.25% 5.4.50% 39.64 FY 2013-14 7.0% 0.19 0.25% 6.50% 9.Case No.2% of its Non Solar (other RE) RPO obligation for the period from FY 2013-14 to FY 2015-16 by way of purchase from Mini Hydro or Micro Hydro power project.” 3.0% 0.456. 2013.701.4 RInfra-D submitted the shortfall in Solar RPO compliance in FY 2010-11 and FY 2011-12 as under: Page 79 of 302 .0% Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Provided that Distribution Licensee(s) shall meet 0.50% 8.50% 8.0% 0.5. RInfra-D submitted its Solar Purchase requirement from FY 2012-13 to FY 2015-16 as given in the table below: Table 31: Solar RPO requirement as submitted by RInfra-D Particulars Gross Input (MU) Solar RPO (%) Solar Obligation (MU) FY 2012-13 7.25% 7.50% 9.49 FY 2015-16 8.897.5.75% 8.15 0.5.33 0.0% 0.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Minimum Quantum of purchase (in %) from renewable energy sources (in terms of energy equivalent in kWh) Solar Non.4.50% 8.50% 38.3 RInfra-D further submitted that it has considered the impact of the Order in Case No.25% 18.34 0. FY 2011-12 and FY 2012-13 cumulatively before 31 March.

RInfra-D had. 2013 that in the Business Plan petition RInfra-D indicated that the likely generation from FY 2012-13 onwards from the plant would be 60 MU.25 0.5.59 18. for purchase of energy generated from the 40 MW solar power (PV) plant of Dahanu Solar Power Private Limited (DSPPL).81 Nil 0. 2011. The delivered tariff is estimated as per Tariffs approved by the Commission in its Order in Case No.48 7524.94 3. RInfraD submitted vide its reply dated 12 February.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Table 32: Cumulative Shortfall in Solar RPO in FY 11 and FY 12 as submitted by RInfra-D Actual Gross Input Solar Solar RPO Procurement Shortf Financial (As per Final RPO Target (including all Year True-Up Target (MU) Solar REC) (MU) Petition) (MU) (%) (MU) FY 2010-11 FY 2011-12 Cumulative Shortfall 8637.Case No.5. The plant is located in Rajasthan with delivery point at Maharashtra State periphery. it was projected as 42 MU per year.35 39. for the purposes of the Business Plan.46 21. However. dated 28 March. it has signed an Energy Purchase Agreement (EPA). 3.4. projected the procurement to 42 MU per annum from FY 2013 onwards so as to cumulatively meet the target of solar RPO from FY 2011 to FY 2016.25 21.59 18. as the same would lead to excess procurement over target from FY 2013-14 onwards.5 RInfra-D submitted that in order to meet its Solar Renewable purchase obligations.02 0. RInfra-D confirmed that the plant is capable to generate approximately 60 MU on an annual basis and provided actual month-wise generation till December 2012 as given below: Page 80 of 302 . while in the Business Plan.6 As per the Commission’s query regarding difference in projected purchase of 60 MU of Solar Power per year for the MYT period from DSPPL’s 40 MW Solar power plant. 20 of 2010.4. Further.

72 December 2012 5.46 107.91 17.to.16 Solar Tariff (Rs. it is expected that there will be a surplus in solar power purchase w. 3. the solar purchase obligation for the respective year.79 October 2012 6.) 107.51) 40.78) 38.86 Table 34: Solar Power Cost Summary as submitted by RInfra-D for the second Control Period FY FY FY FY Solar Power Cost 2012-13 2013-14 2014-15 2015-16 Solar Purchase from DSPPL (MU) 60.00 60.91 17. reduction in output due to bad weather or malfunctioning in solar panels. etc. RInfra-D own sales and power purchase requirement is lower than estimated at the time of contracting with DSPPL.46 107.37 Total 41.5.7 Further. per kWh) 17.51 (21. Its Compliance and Implementation of REC Framework) Regulations 2010 requirement from FY 2012-13 to FY 2015-16 as given in the table below: Page 81 of 302 .Case No.36) 3.00 60.35 November 2012 3.91 Solar Power purchase cost (Rs Cr.84 August 2012 3.46 107.8 RInfra-D submitted its Non Solar Purchase as per MERC (Renewable Purchase Obligation.4.4. RInfra-D submitted that for the period from FY 2012-13 to 2015-16.91 17.90 July 2012 4.49) 39. Due to migration of consumers.75 Solar Obligation including shortfall (MU) Solar Shortfall in previous years (MU) Deficit/(Surplus) (MU) 58.61 September 2012 4.22 (1.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Table 33: Actual month-wise generation from DSSPL as submitted by RInfra-D Actual Generation Month (in MU) April 2012 3.10 June 2012 4. RInfra-D further added that over contracting is prudent considering uncontrollable events such as increase in sales. The surplus is expected to be a result of the impact of migration of consumers to TPC-D.49 (20.17 May2012 5.r.00 60.5.80 (19.

10 4.95 4.5.33 8.84 FY 2015-16 90.4.25 4.91 6.40 Jindal Steel and Power Limited 5.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Table 35: Non Solar Obligation as submitted by RInfra-D (MU) Non Solar Obligation Gross Input (MU) Non Solar RPO (%) Non Solar Obligation (MU) FY 2012-13 7. Ltd 5.54 3.67 6.07 Tembhu Power Private Limited 4.06 Table 37: Power Purchase rate with Existing Non Solar Contracts as submitted by RInfra-D (Rs/kWh) FY FY FY FY Power Purchase Rate 2012-13 2013-14 2014-15 2015-16 Reliance Innoventures Pvt.897.07 5.75% 577.62 10.00 78.26 4.15 7.25 4.34 8.80 31.26 Reliance Clean Power Pvt.67 6.40 AAA Sons Enterprise 3.10 RInfra-D submitted that the shortfall in non-solar power purchase requirement obligation after considering the existing contracts is estimated to be met through purchase of Renewable Energy Certificates (REC).54 10.84 FY 2014-15 90.54 10.42 FY 2013-14 90.10 4.67 5.26 FY 2015-16 8.40 Jindal Steel and Power Limited 3.80 31.456.9 RInfra-D further submitted details of its existing Renewable Contracts in order to meet its Non Solar RPO as given in the tables below: Table 36: Existing Non Solar Contracts as submitted by RInfra-D (MU) Existing Non Solar Contracts Reliance Innoventures Pvt.54 8. Ltd FY 2012-13 90.51 8.51 8.95 4.10 4.07 5.54 10.5.67 3.67 5. 3.82 31.51 8.26 4.67 6. Ltd.00 39.00 79.67 5.07 5. The purchase price of REC is established based on the actual purchase of REC for the first six months of FY Page 82 of 302 .26 4.00 78.4.Case No.85 FY 2013-14 7.19 8.80 31.701.50% 693.95 4. Ltd. AAA Sons Enterprise Jindal Steel and Power Limited Jindal Steel and Power Limited Tembhu Power Private Limited Reliance Clean Power Pvt.50% 654.159.61 FY 2014-15 7.25 4.50% 671.

85 86.85 186.43 FY FY 2014-15 2015-16 671.5. RInfra-D submitted details of the estimated REC procurement for the MYT Period as given in the table below: Table 38: Quantum and Cost of Non.85 82.81 Crore.52 693.49 FY 2013-14 654.35 428.95 466.59 1.26 226.25% on total bill prompt payment within 7 days JSPL from date of receipt of the bill Discount of 1. vide the Business Plan Order in Case No.11 Further.25% on total bill prompt payment within 15 days Reliance Clean Power from date of receipt of the bill Discount of 1.Solar REC procurement as submitted by RInfraD Particulars Non. RInfra-D was directed to submit Accelerated Depreciation details for power purchase from Reliance Clean Power Pvt. RInfra-D submitted month-wise details of actual RECs purchased during FY 2012-13 which amounted to Rs.54 226.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 2012-13.4.4.54 3. RInfra-D submitted its replies as given in the table below: Table 39: Discount clause by various RES Generators as submitted by RInfra-D Seller AAA Sons Discount Clause Discount of 2% on total bill prompt payment within 10 days from date of receipt of the bill Reliance Innoventures No Discount Discount of 1.85 79. as follows: Page 83 of 302 .93 460.25% on total bill prompt payment within 15 days Tembhu Hydro from date of receipt of the bill Discount of 1. in response to the Commission’s query regarding provision in PPA for applicability of rebate from Renewable Energy Sources (RES) for payment within the due date.Solar RPO requirement (MU) Non-Solar Contracted (MU) REC requirement (MU) Cost of REC (Rs per kWh) Total Cost of REC purchase (Rs Cr) FY 2012-13 577.26 1.93 1.5. Ltd.25% on total bill prompt payment within 15 days Dahanu Solar Power from date of receipt of the bill 3.35 444. 90. 158 of 2011.85 85.12 Further.Case No.91 1.61 226.

. 3. Since this project is yet to achieve COD. the Commission may consider the same at the finalisation of MYT Order. The Commission has provisionally considered the power purchase expenses. RInfra-D submitted that Reliance Clean Power Pvt.Case No. the Commission does not wish to burden the consumers with undue cost burden estimated approximately as Rs 109. its Compliance and Implementation of REC Framework) Regulations 2010.4. RInfra-D provided the actual power purchase cost from renewable sources including solar. the Commission is allowing the additional quantum of power at highest rate in merit order stack of power purchase at the short-term power purchase rates of respective years.15 The summary of the solar purchase as approved by the Commission is shown in the Table below: Page 84 of 302 . The Commission has considered the actual power purchase cost for FY 201213 from these sources as submitted by RInfra-D for provisional truing up purpose. Ltd is yet to declare COD in view of difficulties faced in acquiring land and infrastructure development and is likely to achieve COD shortly. Further.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period “.” In response to the above direction. 3.13 Subsequently. However.14 As regards the purchase of solar power in excess for RPO targets for the period from FY 2013-14 onwards. 3. in reply to the details sought by the Commission for FY 2012-13. as per PPA terms.. RInfra-D at the time of filing of MYT Petition.5. the same would be trued up subject to the verification and compliance of RPO targets for FY 2012-13. the seller is required to submit documentary evidences for Accelerated Depreciation (AD) and Wind Zone within 12 months after completion of the financial year of COD.4.5.56 Crore for second Control Period. may submit necessary documentary evidence to ascertain whether this project has availed AD benefit or not and based on prudence check..5. the AD certificate has not been provided yet.4. however. by allowing the additional solar power purchase over and above cost pertaining to the minimum quantum of solar power purchase allowed as per MERC (Renewable Purchase Obligation.

35 108.91 38.95 110.69 17.13 107.47 68.87 MU Rs.79 4. the Commission observed that RInfraD has projected to purchase RECs to meet the short-fall of non-solar RPO. Crore Rs.91 40./kWh Page 85 of 302 .92 17.90 17.29 17.60 70./kWh 3.35 106.5.16 As regards the purchase of non-solar power.78 226.91 39.70 226.Case No. Crore Rs.92 73.27 4. The Commission suggests RInfra-D that it should ensure the compliance to the RPO targets by way of purchase of renewable power or by way of RECs from Power Exchanges.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Table 40 Solar Power Purchase approved by the Commission for the Second Control Period Power purchase to meet Solar RPO Unit FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 Approved after Approved Approved Approved Provisional Truing up 60. The summary of the non-solar purchase as approved by the Commission is shown in the Table below: Table 41 Non-solar power purchase as approved by the Commission Power purchase to meet Non-Solar RPO Power Purchase Quantum Power Purchase Cost Average Rate Unit FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 Approved after Approved Approved Approved Provisional Truing up 136.49 4.4.33 4.91 Power Purchase Quantum Power Purchase Cost Average Rate MU Rs.09 55.10 226.

The Commission further directs RInfra-D to provide the cost benefit analysis and other associated benefits for purchase of RECs from Power Exchanges. the Commission has considered Rs.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 3.5. The summary of the cost of RECs for FY 2012-13 to FY 2015-16 as approved by the Commission is shown in the Table below: Page 86 of 302 . In response to query of the Commission regarding actual purchase of RECs during FY 2012-13. for the purpose of provisional truing up for FY 2012-13.5. RECs are being purchase in certificate form. As regards the cost of purchase of RECs. 20/Certificate towards the fees of Power Exchanges based on the actual trade data for FY 2012-13. 1500/Certificate for past 10 months trade data. Further. the Commission directs that RInfra-D should ensure that only the cost associated with market clearing price at the Exchange and the exchange related fees and charges should be considered in future and not the trading margin paid to the trader for procurement of RECs. Further. 3. for the period from FY 2013-14 to FY 2015-16.18 Accordingly. the Commission has considered the average Market Clearing Price of Rs. As regards the procurement of RECs from Power Exchanges. it is observed that Distribution Licensee should have procured directly from the Exchange as the Exchange platform provides the double-sided undisclosed bidding and therefore in such case a trader is not expected to provide any additional benefit for procurement of RECs. considering the fact that on account of shortfall to meet RPO. subject to prudence check.Case No.4.17 Further. the Commission observed that RInfra-D has also proposed to purchase nonsolar RECs to meet the shortfall of non-solar RPO target for FY 2012-13 to FY 2015-16. the Commission has presently considered the shortfall in non-solar RPO to be met through purchase of RECs. the Commission has considered the actual purchase of RECs during FY 2012-13. Moreover. RInfra-D submitted the details of actual purchase of RECs during FY 2012-13 in the format provided and observed that Trading Margin shown in the power purchase made from IEX is towards trading margin of trader.4.

00 5. the surplus and shortfall in energy terms.54 22.60 3.29) (78.22 (21.88) Page 87 of 302 FY 2013-14 FY 2014-15 FY 2015-16 .57) (8.13 0.26) (14.58 7.24) (64.50 43.79 12.63 446.69 1.81 65.6.4.38 23.75 427.08 19.06) (68.00 13.77 5.41) (32.05 0.00 11.96) (70.99 33.66 3.85) (70.96) (6.31 29.6 Short Term bilateral Power Purchases 3.58 0.65) (11.71) (73.08) (71.89) (32.33 1.24 37.70 4.68 12.92 0.00 67.00 25.51) (18.55) (17. on an hourly basis.38) (9.34) (5.67) (27.00 8.86 17.18 31.28) (7.86 468.00 12.42 0.02 46.76 10.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Table 42 Purchase of Non-Solar RECs approved by the Commission for FY 2012-13 to FY 2015-16 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 Approved after Approved Approved Approved Provisional Truing up RPO shortfall MU 504.40) 29.16 0.00 2.82) (16.21 0.10 30.05 (28.00 4.09) (9.81) (6.69 Cost of Purchase of REC Rs.92 71.80 1.57) (70.55) (47.17) (8.00) (81.44 2.52 Power purchase to meet Non-Solar RPO Unit 3.56 0.02 0.85) (55.50 36.61) (3.52 (30.64) (24.52 1.14) (15.39) (53. The summary of daily load profiling.50) (62.85) (48.34 0.53 24./kWh 1.20 0.39 1.15 3.99) (49.95) (12.68) (78.36 1.32) (54.78) (56.10 0.72 7.16) (7.Case No.00 14.65) (37.52 1.34 0.96) (42.71 0.40 18.69) (15.20 9.87) 24.09) (9.00 9.20) (61.07 8.17) (6.1 RInfra-D in its MYT Petition has projected the hourly demand and generation availability from base load sources and determined.29 1.36) (45.66 27.00 3.91 7.22) (57.95 39.41) (74.4.74) (49.64) (3.70 20.51 29.00 10.22) (15. giving rise to energy surplus and deficit on an hourly basis for each year of the MYT Period as submitted by RInfra-D is as given in the table below: Table 43: Annual Hour wise Deficit and Surplus as submitted by RInfra-D (MU) FY 2012-13 Hour Deficit Surplus Deficit Surplus Deficit Surplus Deficit Surplus 1.31) (7.77 15.96) 33.00 7.00 15.91 0.51 27.24 Average Rate Rs.27 30.00 6.96) (13.33 21.06) (4.52) (57. Crore 90.00 (33.51) (59.

92 18. RInfra-D submitted that in its MYT Petition.00 19.82) (8.6.78 33.44 (462.00 21. RInfra-D submitted that it would explore the possibility of tying up long-term power from any upcoming hydro power plant in order to meet its peak power requirement.42) (6.15 36. no projection of any banking is made at and the entire surplus power as projected is considered as sold.75 (16. RInfra-D submitted that Peak Power requirement for the entire month for the period 9 Hrs to 24 Hrs would be purchased by inviting short term tender from Merchant Generators/Traders /IPPs as per Guidelines issued by Ministry of Power for Short Term Power Purchase.91 64.18 51.15) (3.93) 631.48 16.63 27.52) (15.69) (15. matching load profile) is not available in the market and RInfra-D.4.00 18.94) 746.4 Further.32) 493.4.35) 30.83) (6.65) (1.42 (14. Whereas power required for few hours of the day would be purchased from Power Exchange at competitive price discovered on Exchange. considering the likely hourly pattern of load for each year of the MYT Page 88 of 302 .45) (1.00 24.62 52.4.6. customised power (i.31) (2.34 (717.89) 514. in order to avoid load shedding to its customers..26 20. At times.19) (3.00 17. has to purchase Round the Clock (RTC) power.91) (1. Also.84) (19.73 62.61 29.3 Further.44) (0.6.55 55.29) (10.27 49.32 (10.4.2 RInfra-D proposed to meet its peak load requirement for the Control Period based on the time period for which power is to be purchased i.82) (0.55) (4.46 23.24 70.14) (2.86 40.e.17 28.63) (11.5 RInfra-D considered the quantum of short-term power purchase as worked out in the table above.28 49. 3..84) (10.25) (12. weather power is to be purchased for 9 Hrs to 24 Hrs for the entire month or for few hours during day peak and evening peak.09 (615.01 42.00 Total 24.89 46.01) (7. only during peak hours.46) (17.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period FY 2012-13 Hour FY 2013-14 FY 2014-15 FY 2015-16 Deficit Surplus Deficit Surplus Deficit Surplus Deficit Surplus 16.51) (5.91) 3.83 59.90 (17.95 49.18 46.53 (645.e.67 60.43) (9.70 28.29) (16.57) (15.22 56.18) (1.53 66.00 23. 3.06) 36.00 22.38) 23.04 66.01 49.41 42.77 21.00 20.6.83) (1.69) (15. 3.01) (18.Case No.66) (2.88 51.70) (3.

RInfra-D further submitted that this approach is consistent with the methodology adopted by the Commission in its Tariff Orders for Maharashtra Utilities.7 RInfra-D submitted that additional surplus energy as worked out using the hourly load pattern would be utilised by RInfra-D for sale outside the License area. The estimated revenue from the sale of surplus power is adjusted against the gross power procurement cost. after fully meeting the demand of its customers. Further annual escalation rate of 3% is used to project the rate of sale of surplus power from FY 2012-13 to FY 2015-16.4.98 240.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Control Period and the base load capacity availability projected considering its present and proposed contracts with DTPS.34 FY 2015-16 631.09 4. Further annual escalation rate of 3% is used to project the price of short term power purchase from FY 2012-13 to FY 2015-16. 3.74 4.6 RInfra-D calculated the base price of short-term power purchase as the actual weighted average price of the short term power purchased by RInfra-D in FY 201112. where surplus (if any) is considered to be sold at the prevailing short-term market rates for power. The quantum and cost of surplus power purchase as projected by R-Infra D is as given in the table below: Page 89 of 302 .4. The quantum and cost of short term power purchase as projected by R-Infra D is as given in the table below: Table 44: Quantum and Rate of Short Term Power procurement as projected by RInfra-D Particulars Short term procurement in MU Short term Power procurement cost per unit (FY11-12 value of Rs. 3.60 4.6. AMNEPL and VIPL.51 3.Case No. 4.8 RInfra-D submitted that the base price for surplus sale is the actual weighted average price of the surplus sale realised by RInfra-D in FY 2011-12.47 per kWh escalated annually at 3%) (Rs/kWh) Total short term power purchase cost (Rs Crore) FY 2012-13 514.4.03 236.6.88 5.90 353.53 FY 2013-14 746.97 317.6. WPCL.44 FY 2014-15 493.

85 Average Rate Rs. the Commission has not accepted the rates as considered by RInfra-D. the Commission is of the view that past trend would not be ideal for estimating the power purchase rate for short-term power procurement as there has been gradual shift in the power availability to RInfra-D from medium and long-term sources and there is expected increased availability with additional long-term sources. The Commission observed that RInfra-D in the past has been procuring Page 90 of 302 .458. however.03 3.31 (Rs per kWh) Surplus Power (MU) 645.6. The Commission observed that RInfra-D has conveniently chosen to consider only purchase from Power Exchange.81 surplus power (Rs Cr) 3.07 * 82. 98.94 462.47/kWh as estimated by RInfra-D summarised as under: Table 46 Actual short-term Power Purchase during FY 2011-12 Particulars Purchase Quantum MU 1.4.20/kWh as against Rs. the weighted average rate for power purchase from bilateral and power exchange works out to Rs.12 3.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Table 45: Quantum and Rate of Surplus Power sale projected by RInfra-D FY FY FY FY Particulars 2012-13 2013-14 2014-15 2015-16 Surplus power sale rate 3.32 717.Case No.21 Purchase amount Rs.93 Crore paid to GEPL for no-off take reduced to arrive at realistic purchase cost 3.93 615./kWh 4.47 4. the Commission has accepted the method for estimating the requirement of power purchase from shortterm sources and accordingly approve the same quantum as proposed by RInfra-D.6. 4. 4.64 203.21 3.13 185. Crore 607.2 230.16 4.6 144.20 Bilateral Exchange Weighted Average *Note: Penalty of Rs.10 Further. As regards the purchase rate for procurement of power on short-term basis.4.92 Realization from sale of 195.9 As regards the purchase of power from short-term sources.

4.Case No.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period substantial requirement from short-term sources as evident from the following Table: Table 47 Purchase from short-term sources by RInfra-D (MU) Particulars FY 2010-11 Actual 2. The Power purchase for short-Term Power Procurement Unit Page 91 of 302 .09 Bilateral Exchange Total 3./kWh 3.09 2.12 For estimating the revenue from sale of surplus power.45 746.34 631.75 3.28 611.34 631. The Commission opines that since the actual data for FY 2012-13 is now available.376.6.45 746. The summary of the estimated power purchase quantum and cost as approved by the Commission for each year of the Control Period is shown in the Table below: Table 48 Short-term power purchase approved by the Commission FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 Approved after Approved Approved Approved Provisional Truing up Power Purchase QuantumMU 447.22 185.6.4. the Commission has considered the rate of Rs 2.92 Average Rate Rs.05 439.643.35 per kWh for FY 2014-15 and FY 2015-16 for estimating the revenue from sale of surplus power.75 3. Crore 167.11 It can be observed from the above Table that there has been significant decrease in the requirement of the short-term purchases as evident from the actual purchase of 447.21 1.50 per kWh for FY 2013-14 and Rs 2.40 447.75 3.21 236.75 3.98 280.75 MU during FY 2012-13 and estimated during the Control Period. the Commission has considered the actual power purchase rate for FY 2012-13 for estimating the power purchase expenses for procurement from short-term sources.37 FY 2011-12 Actual 1.35 FY FY FY FY 2012-13 2013-14 2014-15 2015-16 Actual Estimated Estimated Estimated 8.44 493.44 493.09 Power Purchase Cost Rs.458.13 185.987.

35 Sale of Surplus Power Unit 3. 51 of 2012.5 Transmission Charges 3.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period summary of the estimated sale quantum of surplus power and revenue as approved by the Commission for each year of the Control Period is shown in the Table below: Table 49 Sale of surplus power as approved by the Commission for RInfra-D FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 Approved after Approved Approved Approved Provisional Truing up Power Purchase QuantumMU 842.34 448.94 Power Purchase Cost Rs. RInfra-D has escalated transmission tariff determined in the above Order at the rate of 5% per annum.70 111.59 FY 2015-16 307.Case No.1 RInfra-D submitted that transmission charges to be borne by it is Rs 265 Crore in FY 2012-13 as per the Commission’s Order dated 21 May. Cr) Particulars Transmission Charges FY 2012-13 265.5. 3.23 Average Rate Rs.32 134.5.66 FY 2014-15 292.2 The same has been considered in the MYT Petition for FY 2012-13.22 Page 92 of 302 .1.50 2./kWh 2.35 2. The intra-state transmission charges considered by RInfra-D are given in the table below: Table 50: Transmission Charges for the second Control Period as submitted by RInfraD (Rs. Crore 197.88 158. From FY 201314 onwards. 2012 in Case No.35 2.1.13 674.39 FY 2013-14 278.58 571.

2 RInfra-D submitted that in FY 2012-13 however. the Commission has considered the annual transmission charges as approved in the said Order.6.3 Further. 3.6. it is paying Rs. 3. Accordingly.1. the Commission has relied upon the Order dated 13 May. 212.3 As regards the transmission charges payable by RInfra-D for utilisation of intraState Transmission system. From FY 2014-15 onwards a payment of standby charges of Rs. 56 of 2013 issued in the matter of Suo motu Determination of Transmission Tariff for Intra-State Transmission System (InSTS) for FY 2013-14 to FY 2015-16 of the second MYT Control Period. 124 of 2012.1.45 Crore as the Standby Charges as approved by the Commission in its order in Case No. 2013 in Case No. RInfra-D submitted that it has made adjustment in the projected stand-by charges of FY 2013-14 in the MYT Petition. it was submitted by RInfra-D that in its Petition in Case No. 143.1 RInfra-D submitted that the Commission has determined the Standby charges in its Business Plan Order in Case No.Case No.39 428.27 453. 158 of 2011 dated 23 November.70 Page 93 of 302 .1.11 390.23 Intra-State Transmission Charges Rs.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 3.70 Crore for each year of the MYT Period. RInfra-D had mentioned that it paid an excess charge of Rs. the excess stand-by charges paid during FY 2012-13 can be adjusted in FY 2013-14. 8.5. 126 of 2011.6. summarised as under: Table 51 Transmission Charges payable by RInfra-D as approved by the Commission Transmission Charges Unit FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 Approved after Approved Approved Approved Provisional Truing up 265.6 Stand-by Charges 3. 180 of 2011.1. As the MYT Order is only expected to be effective from FY 2013-14 onwards. 2012 as 143. Crore 3.61 Crore in FY 201213 for stand-by support due to incorrect representation of RInfra-D’s share in the Commission’s Order in Case No. Accordingly. This excess payment has also been adjusted in the projected stand-by charges of FY 2013-14 in the present MYT Petition.

6.00 137.06 77.7 137.1. Crore Rs.70 3. Crore 143.06 221. Further.36 59.64 Unit Standby Charges Actual Paid Past Period adjustment of excess payment Rs. 56 of 2013 for the period from FY 2013-14 to FY 2015-16.61 Crore in FY 2012-13 for stand-by support. 158 of 2011 dated 23 November.06 FY 2013-14 143.34 FY 2014-15 143. Crore Standby Charges 137.70 77.06 221.70 143.70 FY 2015-16 143.00 Page 94 of 302 . This excess payment has also been adjusted in the approved stand-by charges of FY 2013-14 summarised as under: Table 53 Standby Charges as approved by the Commission for RInfra-D Standby Charges FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 Approved after Approved Approved Approved Provisional Truing up Rs. The year wise projection of standby charges as submitted by RInfra-D is given in the table below: Table 52: Standby Charges for the second Control Period as submitted by RInfra-D (Rs. Cr) Particulars Standby charges (Business Plan Order) Actual Paid Past Period adjustment of excess payment Standby Charges FY 2012-13 143.36 66. 8.00 137.70 221.00 137.Case No.00 Rs. Crore 221. the Commission has considered the adjustments towards excess charge of Rs.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Crore is considered as determined by the Commission in the Business Plan Order in Case No.70 143. 2012.4 As regard the estimation of standby charges for the MYT Control Period the Commission has considered the % share of Coincident Peak Demand and Noncoincident Peak Demand as approved in the Order in Case No.

Further.7.7 SLDC Charges MERC Order for RInfra-D for MYT for Second Control Period 3. RInfra-D has escalated SLDC Charges determined in the above Order at the rate of 5% per annum. 2013 in Case No. the Commission has considered share of RInfra-D out of the approved Budget for MSLDC for FY 2013-14. Cr) Particulars SLDC Charges FY 2012-13 1.2 The same has been considered in the MYT Petition for FY 2012-13.7.16 FY 2015-16 1.1 FY 2014-15 1.4 The Summary of Power Purchase Quantum and Cost is as given in the tables below: Table 56: Summary of Power Purchase requirement as submitted by RInfra-D (MU) Particulars Energy Requirement Long Term FY 2012-13 7456. the Commission has relied upon the Order dated 22 March.1. 3.Case No.7.1.33 FY 2014-15 7897.1. The SLDC Charges considered by RInfra-D is given in the table below: Table 54: SLDC Charges for the second Control Period as submitted by RInfra-D (Rs. 133 of 2012 issued in the matter of Petition filed by MSETCL for approval of MSLDC Budget for FY 2013-14.3 As regards the SLDC charges payable by RInfra-D.64 1. 2012 in Case No.1.9 of 2013 3.05 1. the Commission has considered the same value for each year of the Control Period summarised as under: Table 55: SLDC Fees and Charges as approved by the Commission for RInfra-D SLDC Fees and Charges Unit FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 Approved after Approved Approved Approved Provisional Truing up 1.05 FY 2013-14 1.34 Page 95 of 302 . Accordingly.22 3.181 of 2011 for FY 2012-13. Crore 3.1 RInfra-D submitted that the Commission has determined the SLDC charges in Order dated 30 March.19 FY 2015-16 8159.64 1.64 SLDC Fees and Charges Rs. From FY 201314 onwards.7.15 FY 2013-14 7701.

22 353.5 The Summary of Power Purchase Quantum and Cost as approved by the Commission is as given in the tables below: Table 58: Summary of Power Purchase requirement as approved by the Commission (MU) Particulars Long Term FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 Page 96 of 302 .82 286.13 4058.7.53 997.09 (645.07 497.20) 1.05 221.34 3578.53 307.32) FY 2014-15 3787.67 986.75 3.34 8615.51 (203.24 240.02 793.1.76 FY 2013-14 1525.20 292.70 3446.94 511.12 (717.35 746.53 997.96 409.10 66.37 1935.79 317.97 (230.79 FY 2015-16 1478.60 4047. Cr) Particulars DTPS Wardha Power Abhijeet MADC VIPL VIPL (Long Term) Renewable Short term purchase Realization from surplus sale SLDC Charges Standby Charges Total power purchase cost without transmission charges Transmission Charges Total power purchase cost with transmission charges FY 2012-13 1303.16 143.59 3568.09 8775.87 298.92) Table 57: Summary of Power Purchase Cost as submitted by RInfra-D (Rs.37 265.98 (144.93) FY 2015-16 3798.06 3523.91 287.55 1404.76 286.99 236.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Particulars DTPS Medium Term Wardha Power Abhijeet MADC VIPL VIPL (Long Term) Renewable Short term purchase Total Deficit/(Surplus) FY 2012-13 3997.64) 1.22 3753.96 409.66 3857.44 8163.93 514.39 3788.90 (195.81) 1.84 278.58 304.94) FY 2013-14 3787.35 493.45 197.90 1384.12 631.76 246.60) 1.50 FY 2014-15 1437.22 143.70 3276.Case No.60 1935.53 8102.68 177.78 274.75 293.26 (615.65 (462.

78 71.75 175.09 -571.85 204.34 7.82 0.370.44 167.68 793.1 RInfra-D submitted that it has prepared its capital expenditure plan for FY 2012-13 to FY 2015-16 based on the forecast of system maximum demand.57 FY 2013-14 FY 2014-15 3.48 1.60 3.05 163.00 746.1.798.98 -197.32 137.27 510.05 196.058.28 1.94 8.34 -674.400.06 1.97 1.68 177.60 1.693. replacement of Page 97 of 302 .79 447.787.13 7.23 137.87 631.49 441.11 3.81 26.64 1.48 90.8.82 265.23 3.404.96 1.00 280.22 453.13 Table 59: Summary of Power Purchase Cost as approved by the Commission (Rs.58 183. with the anticipated developments in the area of supply relating to new load.23 65.88 59.00 1.334.8.690.001.920.587.19 67.58 7.1 Capital Expenditure submitted by RInfra-D 3.184.9 of 2013 Particulars DTPS Medium Term Wardha Power Abhijeet MADC VIPL VIPL (Long Term) Renewable Banking Return Short term purchase Deficit/(Surplus) Total Power Purchase MERC Order for RInfra-D for MYT for Second Control Period FY 2012-13 3.00 FY 2014-15 1.803.16 390.05 265.98 4.87 179.70 221.001.96 FY 2013-14 1.44 -448.994.92 185.384.66 FY 2015-16 1.00 0.95 493.95 2.07 FY 2015-16 3.53 997.Case No.24 236.935.94 511.92 -134.00 1.22 55.91 267.96 409.39 3.15 4.45 -842.047.039.787.22 -111.27 3.8 Capital Expenditure and Capitalisation 3.27 3.309.824.21 -158.449. Crore) Particulars Long Term DTPS Medium Term Wardha Power Abhijeet MADC VIPL VIPL (Long Term) Renewable REC Banking Return Short term purchase Deficit/(Surplus) Stand-by Charges SLDC Charges Transmission Charge Total FY 2012-13 1.10 428.76 264.

to impart knowledge and create awareness of the various aspects of Generation.1. 3. of new receiving stations. of existing receiving stations and commissioning of 17 nos. where substantial loads are coming up and the nearby power transformers are loaded above 70 %.8. which are absolutely essential. to optimize the network and the cost. strengthening and modernization in response to new load.4 Apart from the network and allied infrastructure investments proposed above. Transmission and Distribution and other areas forming part of the Power Sector. Switchgear.8. less prone to failure and safer in operations in order to improve system reliability and to ensure safety.2 RInfra-D submitted that it used the demand projections arrived at by IIT Bombay (IITB) as a base for the formulation of the MYT Capex plan. the business plan proposed augmentation of capacity for three nos.Case No. etc. based on 17 years historical data to arrive at the Maximum demand. Gross District Domestic Product growth (GDDP for Mumbai) and other parameters.8. The IITB study used statistical tools and parameters such as historical demand of RInfra-D. It is anticipated that maximum demand will be about 2022 MVA.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period existing assets. However. RInfra-D has already received inprincipal approval of the said Capex on Energy Park from the Commission for the Page 98 of 302 . considering the huge investments required to meet n-1 contingencies and the financial constraints in making such high levels of investments.3 The forecast of maximum demand for the next five years is then used for estimating the investments required to meet the forecast demand. 3.1. 3. the network needs to be re-configured which is necessary from the loss reduction perspective and also to create more Outlets. LT network. during the plan period. As a result of the proposed EHV receiving stations.1. Also it is proposed to replace the existing 11kV Oil type RMUs with SF6/Vacuum RMUs which are more compact. The associated 11 kV network. RInfra-D submitted setting up of an Energy Park. The capital expenditure plan also interacts with the developments at transmission level and forecasts the development of downstream infrastructure required for connectivity to transmission delivery points and evacuation of power thereon. Distribution transformers. Services and Metering are proposed to meet the new load requirement and necessary improvement in the network at different voltage level. by the end of FY 2015-16.

till the time of filing of the MYT Petition.5 RInfra-D further submitted that. 1200 Crore is planned for the period FY 2012-13 to FY 2015-16. 158 of 2011 considered only those schemes which have been granted in-principle approval. The approval of these schemes is anticipated during the proceedings of MYT Petition and accordingly RInfra-D has considered all capital expenditure schemes in the present Petition for projection of ARR. In additional there shall be capital expenditure against on-going schemes of FY 2011-12 and previous years.1. 2012 (MERC/CAPEX/201212013/00764). 3.e.Case No. Non-DPR schemes limited to 20% of approved DRR capitalisation) during each year in accordance with MERC MYT Regulations. which will spill-over into the period going forward from FY 2012-13. Further. However. Accordingly. at the time of the present MYT Petition.7 Details of the total capital expenditure proposed during the plan period from FY 2012-13 to FY 2015-16.1.8.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period same. Further. Accordingly. while estimating the capitalisation for DPR schemes in the Business Plan Order in Case No. 2011. RInfra-D further submitted that fresh capital expenditure of about Rs. the Business Plan submitted by RInfra-D had forecasted capital expenditure for FY 2011-12 (based on actuals upto December 2011). in-principle approvals of the Commission have been received for all DPR schemes as submitted by RInfra-D for the MYT Period except for schemes for release of supply (“Services” DPR). for the Retail Supply business as submitted by RInfra-D are given in the table below: Page 99 of 302 . for replacement of 11 kV Oil Type RMUs and for Metering.6 RInfra-D further submitted that the Commission. the same was included in the capital expenditure plan. There is a slight under spend during FY 2011-12. the actual capital expenditure against various schemes in FY 2011-12 is known. vide letter dated 4 July.1. 3.8.8. 3. an additional 20% (of the approved DPR capitalisation) capitalisation was considered by the Commission towards unplanned expenditure (i. the capital expenditure plan submitted under MYT Petition is slightly different from what was presented in the Business Plan Petition.

54 26.59 19.76 EHV stations Disaster Management (North Division) 2.41 7. Cr) FY FY FY Particulars 2012-13 2013-14 2014-15 DPR Schemes 11kV Network Strengthening Schemes 42.99 Total Retail Supply – 34.93 38.84 5.23 17.86 5.39 30.61 Underground OFC Network (2011-12) 6.46 12.02 15.8 Details of the total capital expenditure proposed during the plan period from FY 2012-13 to FY 2015-16.84 56.84 2008-09 Revised DPR of Receiving Station FY 7.1.20 18.25 54.8.01 36.46 (202013-14) 33kV Network reconfiguration for new 12. for the Wires business as submitted by RInfra-D is given in the table below: Table 61: Capex-Wires Business as submitted by RInfra-D (Rs.15 12.00 1.81 5.01 104.35 33-22/11 kV Receiving Station Schemes 14.00 15.76 33 kV feeder reorientation from GIS 1.01 15.93 36.76 56.28 Bldg.00 3.12 36.74 34.76 19.18 41.01 (202012-13) 33-22/11 kV Receiving Station Schemes 0.) (2011-12) LT Mains Schemes 45.81 13.05 41. Cr) FY FY FY FY Particulars 2012-13 2013-14 2014-15 2015-16 Metering Schemes 33.36 Revised DPR of Receiving Station FY 7.26 80.50 2.85 18.58 40.62 FY 2015-16 100.57 40.03 Energy Park 0.46 15.10 18.06 10.35 74.03 Capital Expenditure 3.86 2009-10 Services Schemes 60.79 5.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Table 60: Capex-Retail Supply Business as submitted by RInfra-D (Rs.50 48.24 37.50 3.40 29.50 Chembur 33-22/11 kV Receiving Station Schemes 27.34 40.03 Street Lighting Schemes 22.38 Page 100 of 302 .63 11kV Oil Type RMU Replacement 1.Case No.94 (2011-12) Distribution Corporate Office (R&D 29.99 64.

unplanned capital expenditure in the form of Non-DPR schemes has also been estimated for each year of the MYT Period.Case No.8.44 41.38 468.08 38.41 Page 101 of 302 . In addition.37 409.1 The summary of the Capitalisation Plan as submitted by RInfra-D for its Retail supply business is given in the table below: Table 63: Capitalisation Plan for Retail Supply Business as submitted by RInfra-D (Rs.30 Particulars Sub-total .30 Wires Business Capital Expenditure – Retail Supply 34.1.00 34.09 41.26 412.00 40.8.Capital Expenditure Table 62: Summary of Capex (Wire & Retail) as submitted by RInfra-D (Rs.16 30.37 FY 2015-16 368.2 Capitalisation Plan submitted by RInfra-D 3.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period FY 2012-13 280.03 Business Total Capital Expenditure 334.51 FY 2013-14 35.93 38.32 1.19 450.10 468.DPR Schemes Non DPR Schemes Total Distribution Wires .42 300.57 40.21 409. where commissioning is expected during the period FY 2012-13 to FY 2015-16 and also includes schemes which have yet to be approved by the Commission.51 0.) FY 2012FY 2013FY 2014FY 2015Particulars 13 14 15 16 Capital Expenditure – Distribution 300.43 FY 2014-15 37. Cr) Particulars Metering Schemes Energy Park Total Retail Supply Capitalisation FY 2012-13 34.45 FY 2015-16 40.62 506.01 4.26 FY 2014-15 374.24 37.29 412. 3.96 19.94 449.38 FY 2013-14 438.9 RInfra-D submitted that the capital expenditure mentioned in the tables above includes schemes already approved by the Commission.11 36.33 3.41 0.8.2. Cr.

21 FY 2015-16 121.73 0. Disaster Management (North Division) (2011-12) Distribution Corporate Office (R&D Bldg.8.Case No.48 20.54 26.79 54.66 23.2 The summary of the Capitalisation Plan as submitted by RInfra-D for its Wires business is given in the table below: Table 64: Capitalisation Plan for Wires Business as submitted by RInfra-D (Rs.17 50.61 FY 2013-14 55.68 Page 102 of 302 .26 20.51 54.DPR Schemes Non DPR Schemes Total Distribution Wires business .82 58.76 8.78 15.60 10.80 73.32 86.14 25.2.61 34.) (2011-12) LT Mains Schemes Receiving Station Schemes Revised DPR of Receiving Station FY 08-09 Revised DPR of Receiving Station FY 09-10 Services Schemes Slum Electrification & Loss Reduction Project Street Lighting Schemes Underground OFC Network (2011-12) Sub Total .78 452.02 FY 201415 452.51 365.90 15.31 414.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 3.58 64.27 Table 65: Summary of Capitalisation (Wire & Retail) as submitted by RInfra-D (Rs.47 28.94 0.75 34.Capitalisation (including IDC) FY 2012-13 0.76 330.34 457.82 6.89 3.84 1.59 FY 2014-15 70.45 493. Cr.72 0.49 9.) Particulars Capital Expenditure – Distribution Wires Business Capital Expenditure – Retail Supply Business Total Capital Expenditure FY 2012-13 330.93 42.12 FY 201314 355.31 22.27 40.47 46. Customer Care Centre etc.43 5.49 18.19 74.45 8.41 60.16 4.66 6.21 41.81 411. Cr) Particulars DPR Schemes 11 kV Mains and Distribution Transformers 11kV Network Strengthening Schemes 11kV Oil Type RMU Replacement 33 kV feeder reorientation from GIS Chembur 33-22/11 kV Receiving Station Schemes 33kV Network reconfiguration for new EHV stations Building Construction & Interior Works Corporate Office.67 13.43 40.57 36.01 330.72 8.41 497.66 FY 2015-16 457.98 16.04 10.03 40.78 70.41 15.43 392.39 10.40 320.59 36.91 67.66 14.12 6.94 8.45 355.

9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 3.8. 91.3.43 Crore.8. whose proposed cost was Rs.12 177.94 493. This scheme is under scrutiny of the Commission.2. Cr) Particulars B-Plan Order Total Capitalisation R-Infra-D estimates Total Capital Expenditure Total Capitalisation FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 275.4 RInfra-D further submitted that the Business plan Petition was based on the provisional data for FY 2011-12.1 The Commission analysed the schemes submitted by RInfra-D and restricted the DPR scheme named “Distribution Corporate Office (R&D Bldg) (2011-12)” with Code No.8. Due to some underspending in FY 2011-12.68 3. RInfra-D submitted deviation in Capitalisation as approved by the Commission in its Business Plan Order and submitted in its MYT Petition as given in the table below: Table 66: Comparison of Capitalisation as approved by the Commission in Business Plan and as submitted by RInfra-D in MYT Petition (Rs.2. there is spill-over expenditure in FY 2012-13 onwards. the final audited accounts for FY 2011-12 have been considered and the numbers relating to capital expenditure and capitalization have been accordingly revised.66 114.19 392.35 450.89 506.62 365. the Commission approves the Capitalisation Plan of RInfra-D for the Second Control Period from FY 2012-13 to FY 2015-16 for Retail and Wire business as given in the table below: Page 103 of 302 .37 334. For the purpose of MYT petition.3 Commission’s Rulings 3.82 449.8. 3.Case No. RInfra-D submitted that it considered both the schemes already approved by the Commission as well as those schemes yet to be approved by the Commission in the capital expenditure and capitalization proposed for the second control period.3 Further.02 105. Further.33 497. Accordingly. REL-D/FY12/11.

43 41.76 8.33 FY 2013-14 36.03 40. Customer Care Centre etc.17 50.81 335.54 64.43 5.67 13.32 86.75 34.68 9.95 328.78 15.15 325.3.94 0.8.66 6.57 36.49 9.63 FY 2013-14 55.89 3.67 450.98 16.47 46. 158 of 2011 dated 23 November. Cr) Particulars Total Retail Supply .78 58. Cr) Particulars DPR Schemes 11 kV Mains and Distribution Transformers 11kV Network Strengthening Schemes 11kV Oil Type RMU Replacement 33 kV feeder reorientation from GIS Chembur 33-22/11 kV Receiving Station Schemes 33kV Network reconfiguration for new EHV stations Building Construction & Interior Works Corporate Office.DPR Schemes(including IDC) Non DPR Schemes(including IDC) Total Distribution Wires business Capitalisation (including IDC) FY 2012-13 0.72 0. 2012 approved total Capitalisation from FY 2012-13 to FY Page 104 of 302 .33 40.04 10.66 23.12 6.40 318.76 299.72 8.94 8.26 20.41 15.80 73.11 FY 2014-15 70.51 54.19 74.48 20.Capitalisation FY 2012-13 34.16 4.73 0.47 FY 2015-16 121.47 28.Case No.31 22.34 FY 2014-15 FY 2015-16 41.90 15.10 Table 68: Capitalisation Plan for Retail Supply Business as approved by the Commission (Rs.66 14.41 60.79 54.45 8. Disaster Management (North Division) (2011-12) LT Mains Schemes Receiving Station Schemes Revised DPR of Receiving Station FY 08-09 Revised DPR of Receiving Station FY 09-10 Services Schemes Slum Electrification & Loss Reduction Project Street Lighting Schemes Underground OFC Network (2011-12) Sub Total .84 1.91 67.15 375.49 18.39 10.31 408.96 25.2 The Commission in its Order on Business Plan of RInfra-D in Case No.32 3.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Table 67: Capitalisation Plan for Wire Business as approved by the Commission (Rs.82 6.34 40.

12 89.3 The variation in Capitalisation in Business Plan Order and Capitalisation submitted by RInfra-D in its MYT Petition and details of additional approved Seven (7) DPR schemes is as given in the tables below: Table 69: Variation in Capitalisation as approved by the Commission in Business Plan Order and as submitted by RInfra-D (Rs. The Variation is on account of Seven (7) DPR Schemes pertaining to the proposed Capitalisation amount of Rs.31 114.02 214.75 177.1748.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 2015 -16 at Rs.86 Page 105 of 302 .68 382. Cr) Particulars B-Plan Order Total Capitalisation R-Infra-D estimates Total Capitalisation Variation Total Variation FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 275. The Commission also notes that the schemes for Retail Supply business of RInfra-D are yet to receive in-principle approval.37 365.82 497.Case No.05 105. 673.89 392. the capitalisation pertaining to the in-principle approved schemes.43 Crore whereas in the MYT Petition.56 Cr approved by the Commission after issuance of Business Plan Order and before submission of RInfra-D MYT Petition.13 1075.35 493. ” 3. 1075.48 Crore. 158 of 2011: “…. RInfra-D submitted the total Capitalisation Plan from FY 2012-13 to FY 2015 -16 as Rs.66 388.8. RInfra-D may include in its MYT Petition.3. RInfra-D submitted these schemes as per the directive of the Commission to in its Business Plan Order in Case No. RInfra-D may include those schemes as well in their MYT Petition if they are approved before filing of the same.

87 2 628.49 34.47 28 15.78 61.75 67.72 434.23 204.72 79.89 27.46 33.84 456.02 18.25 73.03 164. 2011 it has computed depreciation expenses as provided below: Page 106 of 302 .66 160.73 154.82 28.04 261.47 70.7 167.78 58.71 111.32 18.14 364.88 31.47 REL-D/FY13/07 17.82 31.91 34.36 98.78 60.72 4.89 70.33 100.28 145.9.46 628.68 3 LT Mains Schemes (2013-16) Capitalisation 261.03 REL-D/FY13/04 59.99 0.58 37.42 68.46 REL-D/FY13/03 145.91 66.13 1075.71 67.69 19.41 19. Cr) In principle Clearance As As Prop.74 34.8 460.15 20.81 7 111.59 239.1.69 27.51 121.41 50.9 167.43 8.99 57.29 54.09 231.56 3.71 REL-D/FY13/08 27.Case No.65 111.48 40.28 REL-D/FY13/06 33.35 261.46 64.46 73.76 364.03 145.31 628.98 36.93 35.59 12.18 74.23 239.52 REL-D/FY13/02 96. R.03 40.23 REL-D/FY13/05 53.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Table 70: Additional Schemes approved Post issuance of Business Plan Order and Pre Submission of MYT Petition (Rs.86 16.08 5 Metering Schemes (2013-16) Capitalisation 145.52 92. Infra-D MERC S No.46 322.27 375.79 1823.65 35.1 RInfra-D submitted that in accordance with MERC MYT Regulations.9.91 4 Services Schemes (2013-16) Capitalisation 239.88 55.41 62.43 471.Appr.1 Depreciation submitted by RInfra-D 3.28 147.07 302. Proposed Scheme Code No FY13 Year wise Schemes FY14 FY15 FY16 Total Cost 1 33-22/11 kV Receiving Station Schemes (2013-16) Capitalisation 11kV Network Strengthening Schemes (2013-16) Capitalisation 374.01 18.51 6 Street Lighting Schemes (2013-16) Capitalisation 11kV Oil Type RMU Replacement (2013-16) Capitalisation Total Capex Year Wise Total Capitalisation Year Wise 73.9 Depreciation 3.

9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period “31. Provided that the Generating Company or Transmission Licensee or Distribution Licensee.9.28% Useful Life as per MERC/ based on companies act 90 50 25 Year Lapsed till 70% 19 19 12 Remaining life after 70% 71 31 13 Depreciation rate after 70% 0. the same have been considered as per the Companies Act. shall submit all such details or documentary evidence. For this purpose. from time to time.34% 5. to substantiate the above claims. remaining depreciable value as on 31st March of the year closing shall be spread over the balance useful life of the asset.65% 1.54% Page 107 of 302 Lease Hold Land Building Plant & Machinery . The effective depreciation rate after crossing 70% threshold is worked out as given in the table below: Table 71: Depreciation rates as submitted by RInfra-D (after crossing 70% threshold) Type of Asset Till 70% (AS per MYT Regulations) 3.28% 0. as provided in these Regulations. the useful life of assets defined in MYT Regulations.2 The Generation Company and Transmission Licensee or Distribution Licensee shall be permitted to recover depreciation on the value of fixed assets used in their respective Business computed in the following manner: (a) The approved original cost of the project/fixed assets shall be the value base for calculation of depreciation: Provided that the depreciation shall be allowed on the entire capitalised amount of the new assets after reducing the approved original cost of the project/fixed assets of retired or replaced assets.Case No. as may be required under this Regulation and as stipulated by the Commission. (c) The salvage value of the asset shall be considered at 10 per cent of the allowable capital cost and depreciation shall be allowed upto a maximum of 90 per cent of the allowable capital cost of the asset.2 RInfra-D submitted that the computation of depreciation in its MYT Petition for the Second Control Period is divided into two parts as under: a) Effective Depreciation rate for each asset class is determined for application after crossing 70% threshold. (b) Depreciation shall be computed annually based on the straight line method at the rates specified in the Annexure I to these Regulations: Provided that the Generating Company or Transmission Licensee or Distribution Licensee shall ensure that once the individual asset is depreciated to the extent of seventy (70) percent.34% 3.” 3.1. 2011 has been considered as per the said Regulations and the assets for which no useful life is provided in the Regulations. 1956.

00% 5.33% Year Lapsed till 70% 12 7 10 10 4 10 10 Remaining life after 70% 23 3 4 4 2 4 4 Depreciation rate after 70% 0. as per the rates & the useful life as specified in the MERC MYT Regulations.00% 5. 2011 have specified the useful life for substation and distribution lines.33% 6. For other assets.00% 5.33% 6. 2012: The assets comprising the Opening GFA as on 1 April 2012 and their corresponding accumulated depreciation considered.87% 6. c) Depreciation for new capitalized asset during the period FY 2012-13 to FY 2015-16: In the case of assets capitalized during the period FY 2012-13 to FY 2015-16. Page 108 of 302 . Fittings Refg & Domestic Appliances b) Depreciation on the opening GFA as on 1 April.00% 10.50% 6. Depreciation was calculated at the rates specified by the MERC MYT Regulations.33% 15. useful life has been considered as per the Companies Act. 1956. However. applying the same principles as above.28% 9. the depreciation is calculated on straight line basis. depreciation has been calculated considering mid-year capitalisation. Equipment Computer & Software Elect. 2011 upto the 70% threshold.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Useful Life as per MERC/ based on companies act 35 10 14 14 6 14 14 Type of Asset Till 70% (AS per MYT Regulations) 5. 2011. for these new assets.00% Distribution System Vehicles Furniture/Fixture Off. depreciation is computed using the effective rate as shown in the table above. RInfra-D further submitted that no asset from this category will reach 70% of its value during the MYT Period. On reaching 70%.67% 5.Case No.00% 6. The MYT Regulations. ii. Depreciation calculated based on query run in the SAP system on the asset database with the following conditions which are in line with MERC MYT Regulations 2011: i.

Case No.1.1.9. RInfra-D submitted that depreciation has not been claimed beyond 90% of the asset value. and salvage value were considered in these calculations for depreciation for opening GFA as on 1 April.6 Further. RInfra-D submitted that currently only a lump-sum value for asset retirement has been estimated in the MYT Petition and the same is not based on any actual analysis of assets based on their accounting or physically useful life. 2013 that the depreciation working for the years under consideration is based on depreciation on Opening GFA as well as on asset projected to be added during the year. 2012 and the depreciation working is correctly prepared as per the applicable MYT Regulations.9. there could be changes on account of variation in capitalization. 3. 158 of 2011 directed RInfra-D to provide details of retired assets during the period FY 2012-13 to FY 2015-16. 2012.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 3. 2011 and placement of the certificate in the Audit Committee of the Company. RInfra-D submitted that even with assets reaching 90% of historical value during MYT Period. and Page 109 of 302 . 3.5 RInfra-D submitted that the Commission in its Order on the Business Plan in Case No. However.9. retirement of assets. in reply to the Commission’s query of certificate from the Statutory Auditor – certifying that the calculation of depreciation as presented in the MYT petition is based on the balances as appearing in the books of accounts as on 31 March.4 RInfra-D submitted that the projections of Asset base and Depreciation have been made considering projected capitalisation and the existing mix in which assets are added in FY 2011-12. asset mix of assets added. which would alter the actual depreciation from what is estimated.1. RInfra-D requested the Commission to kindly waive this direction as it would be very difficult to currently estimate actual asset-wise retirement during the MYT Period. 3. The depreciation workings are based on estimates of asset additions and not actuals.3 RInfra-D further submitted that the effect of retirement of assets and withdrawal of corresponding accumulated depreciation.9. the same may not be retired as the asset might still be useful based on its actual physical condition.1. RInfra-D submitted vide its reply dated 11 February. In this regard. etc. differential depreciation rates.

97 6.1. Cr) FY FY FY FY Particulars 2012-13 2013-14 2014-15 2015-16 Opening GFA 3644.43 6.68 565.59 452.16 634.12 182.45 40.9.45 6.68 4.52 6.24 Addition Retirement Closing GFA Depreciation for Opening Balance (1 Apr 2012) Depreciation for new additions Total Depreciation 34.54 26.9.91 16.8 The depreciation calculation for the Wires business as submitted by RInfra-D for the period FY 2012-13 to FY 2015-16 is given in the table below: Table 73: Depreciation for Wire business as submitted by RInfra-D (Rs.21 155.68 15.51 6.61 355. Cr) FY FY FY FY Particulars 2012-13 2013-14 2014-15 2015-16 Opening GFA 506.Case No.69 36.02 15.73 6.58 154.56 Depreciation for Opening Balance 157.26 47.24 15.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period therefore the auditor would not be able to certify the same.24 600.42 4762.75 3.09 565.42 3.9 Addition 330.62 Total Depreciation 166.78 0.39 534.1.75 2.71 224.02 600.42 4762.52 41.27 Retirement 6.32 4317.32 4317.9 Further. Since the certification is not possible the same could not be placed before the Audit Committee. 3.78 20.58 156.49 6.55 534.41 6.9. RInfra-D submitted deviation in Depreciation from the value approved by the Commission in its Business Plan Order in Case No.48 15.68 3968.7 The depreciation calculation for the Retail Supply business as submitted by RInfraD for the period FY 2012-13 to FY 2015-16 is given in the table below: Table 72: Depreciation for Retail Supply business as submitted by RInfra-D (Rs.48 202.89 22.21 457.1.9 5213. 158 of 2011 and those submitted in its MYT Petition as given in the table below: Page 110 of 302 .77 18.13 (1 Apr 2012) Depreciation for new additions 8.61 Closing GFA 3968.13 70.

81 201.42 Total 182. Cr) FY 2012.9.FY 2014.21 169.75 Depreciation – Retail 16. RInfra-D considered both approved and yet to be approved schemes.2.10 RInfra-D also provided reasons for above deviation in the depreciation expenses as given below: a) The Business Plan Petition was based on provisional accounts for FY 201112.Case No.69 18.9.81 Total 160.67 175. has been included for the second control period.1. as 1 April.16 247.71 224. The Commission has considered the opening GFA for FY 2011-12 as Page 111 of 302 .24 164. 3.17 3.FY 2013.45 22.2 Commission’s Rulings 3. b) In the Business Plan Order the Commission approved capitalisation in the second control period based on then approved schemes.1 The Commission has considered the approved Capitalisation from FY 2012-13 to FY 2015-16 for addition of assets during the year and has prorated for each asset category. the annual accounts for FY 2011-12 were finalized and audited and therefore changes have been made to the capital expenditure and capitalisation numbers based on such audited annual accounts. For the purpose of MYT Petition.48 202. which causes change in the opening value of gross block for MYT Period i. 2012.11 14.52 20.82 Depreciation – Retail 15.00 223.35 179.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Table 74: Comparison of Depreciation as approved by the Commission in Business Plan and as submitted by RInfra-D in MYT Petition (Rs.71 15.41 15.9.FY 2015Particulars 13 14 15 16 Business Plan Order Depreciation – Wires 144.e.63 MYT Petition Depreciation – Wires 166.26 160. Subsequently. the total capital expenditure and capitalisation.12 182.50 154.

Case No.9 of 2013

MERC Order for RInfra-D for MYT for Second Control Period

approved in its Order in Case No. 124 of 2012 (truing up of depreciation for FY 2011-12 ) for further projections of GFA for Second Control Period of the MYT. 3.9.2.2 The Commission has considered Depreciation Expenses in two stages separately, first Depreciation on opening GFA and secondly on asset addition for Second Control Period of the MYT. The Depreciation on opening GFA has been calculated by dividing the depreciation amount claimed by RInfra-D and prorated it to the ratio of opening GFA for each asset category as submitted by RInfra-D and opening GFA for that asset category as projected by the Commission in that respective year. For depreciation on asset addition i.e., in the case of assets capitalised during the period FY 2012-13 to FY 2015-16, the depreciation is calculated on straight line basis, as per the rates & the useful life as specified in the MERC MYT Regulations, 2011, mid-year capitalisation rate for each asset category. The estimated retirement of assets for Second Control Period of MYT as submitted by RInfra-D has been taken as the retirement of assets. 3.9.2.3 The total depreciation allowed for Second Control Period of MYT from FY 201213 to FY 2015-16, which is the sum of the depreciation for both Wires and the Retail businesses is summarised in the Table below:

Table 75: Depreciation for Wires business as approved by the Commission (Rs. Cr) Particulars Opening GFA Addition Retirement Closing GFA Depreciation for Opening Balance Depreciation for new additions Total Depreciation FY 2012-13 3636.75 328.63 6.97 3958.41 157.24 8.49 165.73 FY 2013-14 3958.41 325.11 6.49 4277.03 155.87 25.37 181.25 FY 2014-15 4277.03 375.47 6.73 4645.77 155.24 43.47 198.71 FY 2015-16 4645.77 450.10 6.61 5089.26 153.80 64.79 218.59

Page 112 of 302

Case No.9 of 2013

MERC Order for RInfra-D for MYT for Second Control Period

Table 76: Depreciation for Retail Supply business as approved by the Commission (Rs. Cr) Particulars Opening GFA Addition Retirement Closing GFA Depreciation for Opening Balance Depreciation for new additions Total Depreciation FY 2012-13 506.55 34.33 6.39 534.50 15.78 0.91 16.69 FY 2013-14 534.50 36.34 6.09 564.74 15.69 2.76 18.45 FY 2014-15 564.74 41.34 6.24 599.84 15.68 4.76 20.43 FY 2015-16 599.84 40.32 6.16 634.00 15.53 6.87 22.40

Table 77: Total Depreciation as approved by the Commission for the Second Control Period (Rs. Cr) Particulars MYT Order Depreciation – Wires Depreciation – Retail Total MYT Petition (RInfra-D) Depreciation – Wires Depreciation – Retail Total FY 201213 165.73 16.69 182.41 166.12 16.69 182.81 FY 201314 181.25 18.45 199.70 182.48 18.52 201.00 FY 201415 198.71 20.43 219.15 202.71 20.45 223.16 FY 201516 218.59 22.40 240.99 224.75 22.42 247.17

3.10 Interest on Long Term Loan Capital

3.10.1 Interest on Long Term Loan Capital submitted by RInfra-D 3.10.1.1 RInfra-D submitted that from FY 2011-12 it has looked beyond its conventional practice of funding all capital expenditure through its own equity pool and has tied up loans from financial institutions and commercial banks. RInfra-D raised Rs. 1000 Crore by the way of Non-Convertible Debentures (NCD) during FY 2011-12. RInfra-D also took a loan of Rs. 350 Crore from Central Bank of India, for which RInfra-D has offered for security, the assets already created and capitalized before the disbursement of the loan. Accordingly, RInfra-D considered the loan amounts
Page 113 of 302

Case No.9 of 2013

MERC Order for RInfra-D for MYT for Second Control Period

towards setting off already admitted normative debt as on 1 April, 2011 Therefore, the opening normative debt of Rs.1335.62 Crore (as per the Petition in Case No.124 of 2012) was replaced by the above mentioned Rs. 1350 Crore actual borrowing. The balance of Rs. 14.38 Crore is used for new capital expenditure for FY 2011-12. RInfra-D provided explanation of the financing arrangement and the corresponding interest computation as given below: Interest expenses for opening normative debt balance as on 1 April, 2012 3.10.1.2 Issue of Rs. 1000 Crore non-convertible debentures: RInfra-D submitted it raised Rs. 1000 Crore by way of issue of secured Non-Convertible Debentures (NCD) during FY 2011-12 (issue subscribed by various agencies – LIC, New India Assurance, GIC, Yes Bank, Pension funds, etc.). The NCDs are secured by creation of charge on the distribution business assets of RInfra-D. The intimation of creation of charge was forwarded by RInfra-D to the Commission vide its letter dated 24 April, 2012 as required under the terms of MERC (General Conditions of Distribution License) Regulations, 2006. The NCDs of Rs. 1000 Crore have been utilized against the opening normative debt as on 1 April, 2011 of Rs. 1335.62 Crore. 3.10.1.3 Term Loan of Rs. 350 Crore from Central Bank of India: RInfra-D submitted it has also contracted debt of Rs. 350 Crore from the Central Bank of India during FY 2011-12 for financing its capital expenditure. A major part of this loan is considered towards refinancing the normative debt balance (left over from refinancing by NCD) as on 1 April, 2011. 3.10.1.4 RInfra-D submitted that according to the MERC MYT Regulations, 2011 repayment for the second control period is equal to depreciation for that year as given below: “33.3 The repayment for the year of the tariff period FY2011-12 to FY2015-16 shall be deemed to be equal to the depreciation allowed for that year….” Accordingly, for computation of Interest on long term loan, RInfra-D considered repayment equivalent to depreciation. The depreciation has been apportioned
Page 114 of 302

Case No.9 of 2013

MERC Order for RInfra-D for MYT for Second Control Period

across the loan considering the opening balance of loans. Further, MYT Regulations, 2011 provide the following with respect to depreciation: “31.2 (b) Depreciation shall be computed annually based on the straight line method at the rate specified in the Annexure I to these Regulations: Provided that the Generating company or transmission licensee or distribution licensee shall ensure that once the individual asset is depreciated to the extent of seventy (70) percent, remaining depreciable value as on 31st March of the year closing shall be spread over the balance useful life of the asset, as provided in these Regulations” 3.10.1.5 RInfra-D submitted that, considering depreciation rates as mentioned in the MYT Regulations, 2011 and debt percentage of 70%, the repayment period considered for tariff purposes stretches to more than 13 years. RInfra-D further added that however MERC (General Conditions of Distribution License) Regulations, 2006 provides that the tenure of any financing arrangement, where assets have been utilized for facilitating financing (i.e. creation of charge on assets), cannot exceed 7 years as under: “The Distribution License shall be entitled to utilize the assets for facilitating financing its investment requirement subject to the conditions… (b) that the financing arrangement is for a period not exceeding seven years or such other period as the commission may specifically direct” 3.10.1.6 RInfra-D submitted its loan schedule as given in the table below: Table 78: Loan Schedule as submitted by RInfra-D (Rs. Cr) Amt. FY FY FY FY FY FY FY Interest Particulars (Rs. 2012- 2013- 2014- 2015- 2016- 2017- 2018Rate Cr) 13 14 15 16 17 18 19 NCDs Repayment Schedule LIC others 585 10.50% 585 NIACL 50 10.25% 16.67 16.67 16.67 Yes Bank 121 11.15% 121 Yes Bank 120 11.15% 120 Yes Bank 124 11.15% 124
Page 115 of 302

Case No.9 of 2013

MERC Order for RInfra-D for MYT for Second Control Period Amt. FY FY FY FY FY FY FY Interest (Rs. 2012- 2013- 2014- 2015- 2016- 2017- 2018Rate Cr) 13 14 15 16 17 18 19 1000

Particulars Total Term Loan Central Bank of India

350

14

28

28

28

28

224

3.10.1.7 RInfra-D submitted that loan conditions mentioned in the MERC (General Conditions of Distribution License) Regulations, 2006 and that which has been considered for Tariff purposes as per MYT Regulations, 2011 do not match. This mismatch will lead to imbalances in the cash flow for RInfra-D. Hence, while RInfra-D has not contracted secured loans for more than seven years, it has to manage the debt redemption obligation with project accruals of depreciation. In order to overcome this problem, RInfra-D intends to refinance the bullet repayment when the same falls due (for e.g. in case of NCD, first redemption is due in FY 2015-16 and in case of term loan, bullet repayment is due in FY 2017-18). Further, RInfra-D submitted that as the estimation of the interest rate in the future is unpredictable at the present the refinancing has been considered at the prevailing interest rate of each of the tranches. In case of loans with moratorium, the refinancing shall be done after setting off depreciation accrued during the moratorium period. 3.10.1.8 RInfra-D further submitted that entire outstanding normative debt is now replaced with actual loans through issue of NCD and Term Loans. The actual interest rates applicable for the existing loans have been considered for computing interest on long term loan capital after considering that repayment for these loans is equal to the depreciation as per the MYT Regulations, 2011. RInfra-D submitted that the interest rate for normative portion of the debt considered in FY 2011-12 is assumed to be 11.50% which is as per the Business Plan Order in Case No. 158 of 2011 and the repayment amount is considered same as proportionate depreciation.

Page 116 of 302

Case No.9 of 2013

MERC Order for RInfra-D for MYT for Second Control Period

3.10.1.9 RInfra-D further submitted that a small portion of the term loan from Central Bank of India is also considered towards funding of capitalization during FY 2011-12. The interest rate and repayment schedule for actual term loan is considered as per the terms of the loan i.e. for FY 2011-12 the interest rate was 11.80% which was revised to 11.55% from May 2012. 3.10.1.10 The summary for loan computation for loans existing as on 31 March 2012, including the NCD, Term Loan and Normative Loan bifurcated into Retail supply Business and Wires Business as submitted by RInfra-D is provided in the table below: Table 79: Summary of Interest Expenses for existing loans for Retail Supply Business as submitted by RInfra-D (Rs. Cr) FY FY FY FY Particulars 2012-13 2013-14 2014-15 2015-16 Opening balance 146.68 130.9 115.15 99.47 Addition 0.00 0.00 0.00 0.00 Repayment 15.78 15.75 15.68 15.52 Closing Balance 130.9 115.15 99.47 83.95 Interest on opening balance of debt 15.21 13.48 11.76 10.05 Table 80: Summary of Interest Expenses for existing loans for Wires Business as submitted by RInfra-D (Rs. Cr) FY FY FY FY Particulars 2012-13 2013-14 2014-15 2015-16 Opening balance 1268.2 1110.63 954.41 798.83 Addition 0.00 0.00 0.00 0.00 Repayment 157.58 156.21 155.58 154.13 Closing Balance 1110.63 954.41 798.83 644.7 Interest on opening balance of debt 131.07 113.78 96.6 79.54 Interest expenses for new loans in the period FY 2012-13 to FY 2015-16 3.10.1.11 Financing of Capital Expenditure for the Second Control Period: RInfra-D submitted that for the proposed capital expenditure and capitalisation for the second control period, the financing is considered on the normative debt/equity ratio of 70:30 based on MERC MYT Regulations, 2011. The consumer contribution has
Page 117 of 302

The proportionate depreciation for the fresh capital expenditure was considered as repayment according to the MERC MYT Regulations.98 11.50% 38.50% 1.5% as approved by the Commission in the Business Plan Order in Case No. Cr) Particulars Opening balance Addition Repayment Closing Balance Interest rate (%) Interest FY 2012-13 0.50% 9.77 45.09 70.50% 66.22 11.00 24. RInfra-D submitted that currently there are no plans to draw any fresh actual debt during the MYT Period for the purpose of capital expenditure.43 8.54 316.50% 96.43 FY 2014-15 445.78 70.89 248.98 FY 2014-15 45.92 26. 158 of 2011.25 25.34 FY 2013-14 23.68 FY 2015-16 70.91 23.56 Table 82: Summary of Interest Expenses for New loans for Retail Supply Business as submitted by RInfra-D (Rs. all fresh debt requirements is considered normative at the interest rate of 11.Case No.89 91.26 445.96 11.10.73 FY 2015-16 714.22 28.55 47.82 FY 2013-14 222.13 714.50% 6.50% 3. 2011.12 The summary of the interest rate expenses for Retail supply Business and Wires Business as submitted by RInfra-D is provided in the table below: Page 118 of 302 .98 29.5 2.89 11.25 11.29 6.54 11.50% 12.54 222.43 11.00 231.62 964.02 4.1. Cr) Particulars Opening balance Addition Repayment Closing Balance Interest rate (%) Interest FY 2012-13 0.61 11.31 3. The summary for interest computation for new loans for Retail supply Business and Wires Business as submitted by RInfra-D is provided in the table below: Table 81: Summary of Interest Expenses for New loans for Wires Business as submitted by RInfra-D (Rs.16 0. Hence.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period been deducted from the total capitalisation while working out the 70% debt requirement.96 320.

46 152.98 6.54 Retail 15.46 Page 119 of 302 FY 2012-13 6. 158 of 2011 and submitted in its MYT Petition as given in the table below: Table 84: Comparison of Interest Expenses as approved by the Commission in Business Plan Order and as submitted by RInfra-D in MYT Petition (Rs.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Table 83: Summary of Total Interest Expenses for Wires & Retail Business as submitted by RInfra-D (Rs. Cr) Interest on Loans Business Plan Order Retail Wire Total MYT Petition Retail Wire Total 16.89 160.1.67 18.41 105.77 19. 2013 that the loan component in the cost of the asset is only 70%.10.46 3. the loan would be completely repaid by way of depreciation before the asset is retired.34 3.28 127.13 Further.43 66.87 Total Interest Expenses 160.97 71.21 13.92 FY 2015-16 1.10.26 108.82 38.05 Total 146.59 Interest on New Loans (FY 2012-13 to FY 2015-16) Wires 12.55 143.21 169.07 113.69 90.48 11.55 FY 2013-14 4.91 69.62 82.10 195.31 Total 14. RInfra-D submitted vide its reply dated 11 February.36 176.41 89.44 169.68 9.60 79.16 42.76 10. Cr) FY FY FY FY Particulars 2012-13 2013-14 2014-15 2015-16 Interest on opening Balance as on 1st April 2012 Wires 131.29 79.44 163. with respect to the Commission’s query regarding actual/normative loan outstanding against the retired assets.77 195.1.14 83.33 181.67 181.Case No.70 85.41 73.73 96.44 17.14 Further.78 96.36 89. 3.89 . RInfra-D submitted deviation in interest rate expenses as approved by the Commission in its Business Plan Order in Case No.39 FY 2014-15 3.56 Retail 1.

c) In the Business Plan Order. For the purpose of MYT Petition. 180 of 2011 has ruled as under: “The Commission has already approved interest rates for normative debt corresponding to the capitalisation approved in respective years before FY 2011-12.10. 8%. 10%.1. whereas the Commission in the Business Plan Order considered normative interest rates as approved by it in the previous Orders (i.10. b) The amount of debt balance considered by RInfra-D is based on the actual capitalisation till FY 2011-12. 3. for the purpose of computing the interest on the opening normative debt. As per the Commission’s view.e. 9%.15 RInfra-D submitted reasons for above deviation in the interest rate expenses as given below: a) In the MYT Petition RInfra-D considered the actual interest rates corresponding to the NCD and Term Loans. were included for the Second Control Period. The Business Plan Petition was based on provisional accounts for FY 2011-12.10. In line with the Page 120 of 302 . the total capital expenditure and capitalisation.Case No.1 As regards the refinancing of the existing normative loan with actual loan.2 Commission’s Rulings 3. considering both approved and yet to be approved schemes. the annual accounts for FY 11-12 were finalized and audited and therefore changes have been made to the capital expenditure and capitalization numbers based on such audited annual accounts. the Commission in its Order in Case No.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 3. the Commission approved capitalisation in the second control period based on the then approved schemes. depending upon the year of admittance of loan).2. present Petition cannot seek review of the decisions already taken in the earlier Orders which have remained unchallenged and hence have attained finality. Subsequently.

62 10.00% YES Bank Central 9.00 8.25% 11.00 350.00 1.41 241.10.00% YES Bank 9. The comparison of the normative loan and actual is as given in the table below: Particulars Approved Outstanding Interest Loan Rate by the Commission 239.93 1.50% 10. observed that all the actual loans availed by RInfra-D have a repayment period of 7 years or less.2.350.” 3.80% Closing Balance for FY 05-06 Projects initiated during FY 06-07 Projects initiated during FY 07-08 Projects initiated during FY 08-09 Projects initiated during FY 09-10 Projects initiated during FY 10-11 Total 585.15% 11. for the purpose of estimating interest expenses for Second Control Period of MYT from FY 2012-13 to FY 2015-16.00 124.00 120. it was observed that the proposed re-finance of the normative loans have been done with expensive loan.31 282.Case No.00% Actual Loan for re-finance LIC & Others Loan Amount Applicable Actual Interest Rate as submitted by RInfra-D 10. Moreover.00 50.335.2 Accordingly.00% YES Bank 9. the Commission has not considered the proposed financing of normative loans by actual loans as submitted by RInfra-D.15% 11. the Commission on scrutiny of the term sheets of these loans.00% NIACL 8.60 205.3 In regard to the actual loans availed by RInfra-D.15% 11.00% Bank of India 3. This clearly indicates that repayment of these loans will have to be refinanced as instalments for repayment becomes due.86 129.50% for normative debt corresponding to the capitalisation which belongs to FY 2011-12.52 236. the Commission approves fixed interest rate of 11.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period practice followed for the past years. The Commission observes that RInfra-D’s proposal to refinance all the actual loans stated above as and when repayment becomes due could expose its consumers to Page 121 of 302 .10.00 121.

8 Regulation 33 of the MERC MYT Regulations.10.10. 3. 124 of 2012 as the opening balance of loan for FY 2012-13. Page 122 of 302 . the Commission has specified that the repayment for each year of the MYT Control Period shall be deemed to be equal to the depreciation allowed for that year. 2011 specifies that the rate of interest used for calculation of interest on long-term loans shall be weighted average rate of interest on the basis of actual loan portfolio at the beginning of each year.10.9 However. Accordingly. 3. From FY 2012-13 to FY 2015-16. 2011. the Commission has considered the repayment of loan equal to the depreciation as approved for respective years. then the weighted average interest of the generating company or transmission licensee or distribution licensee as a whole needs to be considered.Case No. 3.6 The Commission has considered the closing balance of loan as on FY 2011-12 as approved by the Commission in its Order in Case No.10. Hence. as per the 2nd proviso to Regulation 33. 3. as regards the contention of RInfra-D regarding provisions specified in the General Conditions of the Distribution Licence that the financing arrangement is for a period not exceeding seven years or such other period as the Commission may specifically direct and hence it has not contracted loan for repayment of more than 7 years does not hold true. the Commission has considered loan addition for each of the year as 70% of the capitalisation approved for the respective year. 3. the interest should be calculated on the normative average loan availed in a particular year. the Commission disallows admittance of actual loans of shorter duration. considering prudency of the expenditure. 2011 specifies that the repayment of loan shall be equal to the depreciation allowed in the respective year.5 Therefore. the Commission has considered all loans availed by RInfra-D as normative loans for the approval of MYT Petition.7 Regulation 33 of the MERC MYT Regulations. 2011. Further. is of the view that refinancing of normative loan with actual loans as proposed by RInfra-D should not be allowed.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period refinancing risk. if the Distribution Licensee doesn’t have any actual borrowings. the Commission. since. 3.10. which might be detrimental to the interest of the consumers. Further. by way of notifying the MERC MYT Regulations.4 Further.10.5 of MERC MYT Regulations.

60% secured NCD 11. The weighted average interest rate of RInfra as computed is provided below: Table 85: Weighted average interest rate of RInfra as computed by the Commission SL No Particulars of long term borrowing 1 2 3 4 5 6 7 6.78% 3. for FY 2011-12 is considered.Case No.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 3.12 The summary of the outstanding loans. The Commission has further not considered the loan of Rs.10.55% secured NCD ECB in foreign currency unsecured Central bank of India Total Weighted average interest rate Amount Yearly interest (Rs crore) (Rs crore) 250 15.59 300 35.95 150 8.38 100 5.95% secured NCD 5.10 The Commission computed the weighted average interest rate in accordance with Regulations quoted above.35% secured NCD 6. For computing weighted average interest of RInfra company as a whole all long-term loans availed by RInfra as provided in the latest audited financial statements.e.12 50.88 125 8.77 8. 158 of 2011) and RInfra-T (Case No. repayment of loans and interest expense for Wire and Retail business for the Second Control Period of the MYT is as given in the table below: Table 86: Interest Expenses on Long Terms loans for the MYT period as approved by the Commission (in Rs.4 850 98.70% secured NCD 5. new loan. 159 of 2011) have not been considered for computation of weighted average interest rate.12 222. Crore) Page 123 of 302 . 300 Crore toward NCD being short-term repayable in one year. the loans disallowed by the Commission in the Business Plan Order for RInfra-D (Case No. i. 3.18 763.538..10.4 2.10. However.11The Commission has applied interest rate on the average of opening balance and closing balance of loan for each year in order to compute the interest expense on long-term loans admitted during the MYT second Control Period for each of the year from FY 2012-13 to FY 2015-16.

40 186.07 218.492.79 291.64 315.64 123.45 172.94 20.46 1. 2013 is based on the True-Up Petition for FY 2011-12 in Case No.29 14.327.60 16.87 230.69 165.13 1.79 133.11.52 262.29 25.41 1. The opening equity as on 1 April.04 165.44 18.89 165. for RInfra-D.15 1.83 198. The equity portion of new capitalisation in the period FY12-13 to FY 15-16 has been considered at 30% of capitalisation for respective year. The consumer contribution during the year was reduced from the capitalisation during the respective years to arrive at the regulatory equity at the end of the year.77 15.1.59 1.618. Further.420.41 1.82 254.82 1.48 127.07 182.1 Return on Equity submitted by RInfra-D 3.03 16.99 1.11.52 118.545.58 181.545.19 1.71 146. while Page 124 of 302 .373.41 343.38 172.22 22.43 180. 124 of 2012. RInfra-D considered return on the opening equity for the full year.373.91 180.9 of 2013 Particulars Retail Opening Balance Additions of New Loans Repayments Closing Balance Interest Expenses Wires Opening Balance Additions of New Loans Repayments Closing Balance Interest Expenses Retail + Wires Opening Balance Additions of New Loans Repayments Closing Balance Interest Expenses 3.437.59 3.1 RInfra-D submitted that in its MYT Petition it has worked out the Return on Equity by considering the opening equity balance and equity portion of new capitalisation.262.327.70 1.41 138.56 1.70 1.11 Return on Equity MERC Order for RInfra-D for MYT for Second Control Period FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 157. the rate of return as specified in MERC MYT Regulations 2011 was applied. it was submitted that to the equity thus determined.11 130.25 1.618.492.77 219.27 14.71 1.720.Case No.77 28.19 113.01 199.534.27 28.29 240.437.19 227.48 253.94 24.73 1.50 1.

89 1.865.89 330.52 15.35 9.57 6.32 1.27 127.737.5 % per cent per annum.737.610.41 7.Case No.77 457.610.75 24.5 % per cent per annum.21 126.87 22. in Indian Rupee terms.97 355.512. on the amount of equity capital determined in accordance with Regulation” 3.25 1.49 452.59 98.32 1.50% 249.61 91.09 227. “32.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 50% equity was considered for the capital expenditure capitalised during the year as per the MYT Regulations. and for the Retail Supply of Electricity of Distribution Licensee.52 6.420.05 15.82 1.50% 220.64 242. Return on equity capital shall be allowed a return at the rate of 17.90 279.23 7.61 1.83 259.49 18.32 15.65 6.1.58 20.2 The details of the Return on Equity as submitted by RInfra-D for its Wires and Retail supply business are as given in the tables below: Table 87: Return on Equity for Wires Business as submitted by RInfra-D (Rs.73 1.11.69 9.50% 269.512.77 15.52 Page 125 of 302 . Cr) FY FY FY FY Particulars 2012-13 2013-14 2014-15 2015-16 Regulatory Equity at the beginning of the year Capitalisation during the year Equity portion of capitalisation during the year Consumer Contribution and Grants used during the year for Capitalisation Reduction in Equity Capital on account of retirement / replacement of assets Regulatory Equity at the end of the year Return Computation Return on Regulatory Equity at the beginning of the year Return on Equity portion of capitalisation during the year Total Return on Regulatory Equity 1.2.50% 234.83 6.1 Return on equity capital for the Transmission Licensee and Wir es Business of Distribution Licensee shall be computed on the equity capital determined in accordance with Regulation 30 at the rate of 15.

16 194.39 164.05 271.50% 27.73 173.34 259.39 year Capitalisation during the year Equity portion of capitalisation during the year Consumer Contribution and Grants Reduction in Equity Capital on account of retirement / replacement of assets Regulatory Equity at the end of the year Return Computation Return on Regulatory Equity at the beginning of the year Return on Equity portion of capitalisation during the year Total Return on Regulatory Equity 34.92 31.74 28.80 29.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Table 88: Return on Equity for Retail Supply Business as submitted by RInfra-D (Rs. Cr) FY FY FY FY Particulars 2012-13 2013-14 2014-15 2015-16 Regulatory Equity at the beginning of the 156.50% 32.24 184.73 17.42 3.09 36.17 279.83 17.35 0.44 6.09 227.45 10.83 0.27 6.67 17.39 17.67 FY 2014-15 31.34 40.56 6.1.43 9.17 Table 89: Return on Equity for Wires and Retail Business as submitted by RInfra-D (Rs. Cr) Particulars Retail Wire Total FY 2012-13 28.90 33.62 41.41 10. 180 of 2011 as the opening balance for FY 2012-13 and additional thereafter was considered as per the capitalisation approved for each year of MYT Period.25 312.52 290.29 164.83 184.42 0.3 Further RInfra-D submitted that in its Business Plan Order in Case No.11.32 255.51 8.09 173.50% 28.41 FY 2013-14 29.10 6.62 242. 158 of 2011 dated 23 November.Case No. RInfra-D in its MYT Petition considered the opening equity for FY 2012-13 as per the actual closing equity of FY 2011-12 as Page 126 of 302 . However.27 0. 2012 the Commission considered the closing balance of equity as approved in its Order in Case No.50% 30.87 FY 2015-16 33.

2..2 Commission’s Rulings 3.5% for Retail Supply business and 15. while computing RoE for the Second Control Period of the MYT.e. whereas the Commission in its Business Plan Order in Case No.14 229. Cr) Particulars FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 As per Business Plan 220. the Commission has subtracted 30% of the GFA of the retired assets and Consumer Contribution and Grants while computing closing level of Regulatory Equity. 2011.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period per its Petition under Case No. 17. 124 of 2012 (Final truing up of FY 2011-12 and FY 2010-11). 158 of 2011 dated 23 November.41 271.95 Order As per MYT Petition 255.1 While estimating Return on Equity (RoE) for the Second Control period of the MYT from FY 2012-13to FY 2015-16.33 234.Further. The RoE has been considered in line with the MYT Regulations.Case No.5% for Wire business as quoted below: Page 127 of 302 . The deviation in Return on Equity as approved by the Commission in its Business Plan Order in Case No.42 3.11.85 238.67 290.87 312. which considered the actual capitalisation during FY 2011-12. i. 2012 and projected by RInfra-D in its MYT petition was submitted by RInfra-D as given in the table below: Table 90: Comparison of RoE as approved by the Commission in Business Plan and as submitted by RInfra-D in MYT Petition (Rs. 158 of 2011considered only then approved schemes for the purpose of projecting capitalisation for the Second Control Period. the Commission added 50% of the equity portion of the approved Capitalisation during the year. The Opening Equity for FY 2012-13 has been considered as the Closing Regulatory Equity for FY 2011-12 approved by the Commission in its Order in Case No. 124 of 2012.11. RInfra-D considered both approved and yet-to-be approved schemes for the purpose of projections of the capital expenditure and capitalization during the second control period.

93 FY 2014-15 173.83 6.52 32.63 247.5% per cent per annum.44 328.82 0.60 1828.11.34 325.11 20.49 89.67 36.41 0. in Indian Rupee terms.25 0.74 28.33 1598.39 8.85 1702.22 263.47 22.24 10.1 Return on equity capital for the Transmission Licensee and Wires Business of Distribution Licensee shall be computed on the equity capital determined in accordance with Regulation 30 at the rate of 15.90 1509. Return on equity capital shall be allowed a return at the rate of 17.90 33.08 1418.28 30.63 450.73 Page 128 of 302 .2.61 1509.77 375.77 233.04 FY 2013-14 164.65 6.53 184.61 125. and for the Retail Supply of Electricity of Distribution Licensee.81 8.34 6.34 6.73 103.5 % per cent per annum.33 6.86 7.16 10.2.10 24.2 The summary of RoE approved by the Commission for the Second Control period of the MYT from FY 2012-13 to FY 2015-16 is as given in the table below for Retail and Wire Business: Table 91: Return on Equity as approved by the Commission for the Second Control Period of the MYT Period Particulars Retail Regulatory Equity at the beginning of the year Capitalized Expenditure Less: Reduction in Regulatory Equity during the year due retirement of assets Equity portion of capitalized expenditure Regulatory Equity at the end of the year Return on Regulatory Equity at the beginning of the year Return on Equity portion of capitalized expenditure Total Return on Regulatory Equity Wires Regulatory Equity at the beginning of the year Capitalized Expenditure Less: Consumer contribution Less: Reduction in Regulatory Equity during the year due retirement of assets Equity portion of capitalized expenditure Regulatory Equity at the end of the year Return on Regulatory Equity at the beginning of the year Return on Equity portion of capitalized FY 2012-13 156.57 6.38 164.67 27.43 1598.” 3.28 40.09 9.07 173.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period “32.73 28.91 9.92 31.14 1702.05 FY 2015-16 184.97 90.63 18.Case No.52 6.29 34.35 0.32 6.79 29.74 41.25 194.34 219. on the amount of equity capital determined in accordance with Regulation 30.95 6.

022. consulted upon with the utilities and members of public and those specified in the final Regulations.1.01 247.28 1.12 Operations and Maintenance Expenditure 3.86 1. 2010.886.38 1.85 2.674.78 254.52 262.1 Operations and Maintenance Expenditure 3.75 296.73 99.6 of the Draft Regulations for the Distribution Wires business and the Retail Supply business respectively. 2011.772. the Commission had issued the Draft Multi Year Tariff Regulations (referred to as “Draft Regulations”) for public consultation on 30 August.1 RInfra-D submitted that: a) Prior to issuance of the final MERC MYT Regulations.49 FY 2014-15 255.79 Particulars expenditure Total Return on Regulatory Equity Retail+Wires Regulatory Equity at the beginning of the year Equity portion of capitalized expenditure Regulatory Equity at the end of the year Return on Regulatory Equity at the beginning of the year Return on Equity portion of capitalized expenditure Total Return on Regulatory Equity 3.2 RInfra-D also submitted the comparison of the O&M Expenses calculated based on the norms specified as in the MERC MYT Regulations 2011.12.21 7. the actual expenses as per Audited Accounts for FY 2011-12 and the O&M expenses and as approved by the Commission in its Order in Case No.52 114.Case No. b) The norms for O&M expenditure were specified in Clauses 73. c) There was a significant difference between the norms specified in the Draft Regulations.12. 180 of 2011 as given in the table below: Page 129 of 302 .64 1.674.16 10.574.50 1.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period FY 2012-13 226.19 FY 2015-16 273.90 278.886.97 287.3 and 87. d) RInfra-D submitted that the change in O&M norms between the Draft Regulations and Final Regulations had significantly reduced the total allowable O&M expenses to RInfra-D much lower than its actually incurred expenses.90 135.1.12.63 306.772. 3.77 7.99 FY 2013-14 240.90 1.88 1.72 270.01 98.22 8.

01 733. the distribution network activities are not likely to see any change on account of change-over or switchover of consumers. c) Accompanying TPC-D representative for recovery of arrears and disconnect the supply if TPC-D dues are not paid by the changeover consumers.44 R&M Expenses 167. it has highlighted that the migration of consumers from RInfra-D to TPC-D for supply would not alter the O&M expenses in any significant manner as the only activities that would be discontinued for Changeover consumers would be bill printing and bill distribution.4 RInfra-D submitted that even though its retail supply business is witnessing competition and consumer migration at present. the effect of migration – whether on own network or to another network – would also be offset by natural addition of consumers to the licensee’s fold.Case No. RInfra-D further indicated that it is still carrying out a number of its usual business activities even for changeover consumers. in its Business Plan Petition.69 734.04 401.3 RInfra-D further submitted that. 3. if consumer wants SDL (Supply Distribution Licensee) meter.01 185. Expenses 2011 180 of 2011 Employee Expenses 427. just the same way as presently done for own consumers.1.96 146. Page 130 of 302 .96 A&G Expenses 139.44 3.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Table 92: Comparison of O&M Expenses as submitted by RInfra-D MYT Approved Expenses as Actual Particulars Regulations.12.1. All other activities would continue to remain. the O&M expenses shall be reduced marginally over the Plan Period.12. Further. b) Meter replacement during Joint Meter Reading (JMR). the supply activities only reduce to a minor extent. These activities primarily include: a) Regular monthly meter reading of Changeover consumers to validate the consumption data being shared by TPC. per Order in Case No. Hence.05 Total Expenses 558. Similarly. as RInfra-D is responsible for maintaining the distribution system losses.

load enhancement. consumer complaints related to meter/metering equipment. as TPCD is unaffected by such theft as its losses are fixed at normative level which do not even include commercial losses including theft of electricity. which is relatable to past expenses. etc. etc. Such significant reduction in allowed expenses would naturally lead to significant cost cutting if RInfra-D is forced to manage its operations within those expenses. RInfra-D added that while poor PF of the changeover consumers overload the distribution of RInfra-D.Case No. making payments to vendors. 2012. 2011. 3. etc. etc. e) Continued (and increased) vigilance efforts for changeover consumers. etc. in its Order on the Business Plan in Case No. 158 of 2011 dated 23 November. f) Follow-up activities such as monitoring and improvement of power factor.12. paying salaries and wages to employees. such as monitoring and power factor improvement for changeover consumers. for changeover consumers. RInfra-D further submitted that because the O&M norms specified in the MERC MYT Regulations 2011 lead to lower base value of expenses. RInfra-D submitted that the Commission may kindly review its decision under Regulation 100 (Power to Remove Difficulties) of the MYT Regulations.. Page 131 of 302 . meter replacement.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period d) Accompanying TPC-D representatives for on-site activities such as meter testing. RInfra-D submitted that this would lead to significant financial difficulties in terms of managing day to day network operations. however it is TPCD who retains PF surcharge recovered from the changeover consumers g) Coordinating with TPC-D for jobs such as service shifting.1.5 RInfra-D submitted that however. which will have negative impact on quality and reliability of supply. the Commission only computed O&M expenses for each year of the MYT Period as per the MYT Regulations. all expenses to be allowed in future based on the norms would also be much lower than the actual expenses. 2011 so as to provide a more representative allowance of O&M expenses for the MYT Period.

For FY 2012-13.16) as given below: a) As FY 2012-13 is almost over. but considered separately by RInfra-D.16% YoY basis for A&G expenses and escalation of 6. d) RInfra-D proposed to recover charges for usage of SCADA system from RInfra-T. escalation of 7.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 3.9 Further.12. RInfra has established a State of the Art System Control Centre at Aarey. which were considered as base expenses for the MYT Period.1. The projection for FY 2013-14 to FY 2015-16 has been arrived at after considering the escalation of 7.12. Such recovery has been reduced from each head of O&M expenses.89% year on year basis for R&M expenses. 3.Case No. b) Inflation based indices (Consumer Price Index & Wholesale Price Index) were then applied to the base year number to arrive at the annual expenses for each of the O&M categories for the period FY 2013-14 to FY 2015-16 c) Certain arrears and one-time expenses in FY 2012-13 estimates were not escalated. However.8 RInfra-D further submitted that as per prevailing practice. the actual expenses for the first half of FY 2012-13 and estimates for the second half are used to estimate the expenses of FY 2012-13. 3.57% year on year basis for employee expenses.12.1. with effect from FY 201213.7 RInfra-D submitted that. RInfra-T does not have a separate SCADA centre. the actuals have been considered till October 2012 and the same is annualised for the entire year and the effect of the same is considered. RInfra-D submitted its actual (based on provisional account) O&M expenses including corporate allocation for FY 2012-13 as: Page 132 of 302 . but the existing System Control Centre caters to entire Transmission and Distribution Network of RInfra in Mumbai area. 167 of 2011.6 RInfra-D submitted its approach adopted in the MYT Petition for calculation of the O&M expenses for the second control period (FY 2012-13 to FY 2015. entire cost of this control centre is being considered in RInfra-D ARR.12. 3. in line with the Commission approved escalation for Employee and A&G expenses in its Order in Case No. as a part of reply to data gaps.1.1. RInfra-D intends to apportion the costs applicable to the operations pertaining to RInfra-T.

21 Crore c) R&M expenses : Rs.2. RInfra-D submitted that this is a onetime expense for the past arrears b) Normal annual increment of executives c) Compounding effect on Gratuity & Leave Encashment Liability due to wage revision. 3.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period a) Employee Expenses: Rs. 24 Crore pertaining to FY 2011-12 has been accounted in FY 2012 -13.12.28% (based on Consumer Price Index (CPI) for the period 2007-12) to arrive at the Employee expenses for the period FY 2013-14 to FY 2015-16. 225.2. 2010 and another wage revision would be due by the end of the MYT period. it was submitted that the projected employee expense for FY 2012-13 of the RInfra-D is then escalated by 9.2. 3.2 Employee Expenses 3.22 Crore.12. The Actual Employee expenses in FY 2011-12 was Rs 427.07 Crore 3. RInfra-D revises wages of the unionised employees every four years as well as for the staff in the officers and supervisory category.12.1 RInfra-D submitted that it has estimated the employee expenses for the period FY 2012-13 to FY 2015-16 by considering impact of wage revision and the effect on inflation. 159.2 RInfra-D submitted that the wage agreement was revised in July 2012. RInfra-D submitted various factors for increase in employee cost as given below: a) Wage agreement of Non-executives in July 2012 which was effective from July 2010.Case No.12. 594. 3. On account of wage revision an amount of Rs.2. 3.98 Crore b) A&G expenses : Rs. 16 Crore is pertaining to FY 2010-11 and Rs. with wage revision effective from July 2010 onwards.5 The summary of the employee expenses for the period FY 2012-13 to FY 2015-16 as submitted by RInfra-D is given in the table below: Page 133 of 302 .12.2.3 RInfra-D further submitted that there was an impending wage revision for unionised employees due from 1 July.4 Further.12.04 Crore and in FY 2012-13 it is Rs 538.

9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Table 93: Summary of Employee Expenses as submitted by RInfra-D (Rs.12.2 RInfra-D considered Inflation index for projecting A&G expense which was a mix of 60% CPI and 40% WPI.3.3.4.60 0. The A&G expenses have been projected considering two categories. 167. 3.94 544.78 1. 230 Crore in FY 2012-13.00 184. 139.68 216.1 RInfra-D submitted that the actual R&M Expenses for FY 2011-12 were Rs.3.24 199.22 40.05 543.12.54 1.95 3.00 0.22 1.06 171. estimates are separately considered for charges relating to usage of RInfra – Transmission (RInfra-T) land for installations of RInfra-D.96 Crore. RInfra-D submitted that the increase is largely due to uncontrollable factors as given below: Page 134 of 302 .40 1. Cr) FY FY FY FY Particulars 2012-13 2013-14 2014-15 2015-16 A&G Expenses 170.3 The summary of the A&G expenses for the period FY 2012-13 to FY 2015-16 as submitted by RInfra-D is given in the table below: Table 94: Summary of A&G Expenses as submitted by RInfra-D (Rs.4 Repairs and Maintenance Expenditure 3.12.83 1.19 3.45 594.42 Add: Past Period Adjustments Less: SCADA Charges from RInfra-T Total A&G Expenses 1.06 185.07 217.3 Administrative and General Expenditure 3.60 0.01 Crore which increased to Rs.98 650.60 0.Case No.26 648.12.12.96 537.07 201.12. 3.1 RInfra-D submitted that the actual A&G expenses in FY 2011-12 were Rs. Firstly. Secondly. Cr) FY FY FY FY Particulars 2012-13 2013-14 2014-15 2015-16 Employee Expenses Add: Past Period Adjustments Less: SCADA Charges from RInfra-T Total Employee Expenses 498. expense for the FY 2011-12 is escalated annually by an inflation index to arrive at projected A&G expenses for the years from FY 2012-13 to FY 2015-16.26 1.60 0.15 593.

b) Increase in material consumption cost from the previous year due to nonreceipt of many materials in FY 2011-12.22 0. For estimating R&M Expenses.12.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period a) Wage agreement of Contracted labourers in July 2012 with effect from July 2010.00 214.04 229. RInfra-D considered Inflation index based on WPI. 3.3 The summary of the R&M expenses for the period FY 2012-13 to FY 2015-16 as submitted by RInfra-D is given in the table below: Table 95: Summary of R&M Expenses as submitted by RInfra-D (Rs.82 228.12. 3. The data for CPI was taken from the website of the Labour Bureau. Since contracted labourers do not form a part of the employee expenses they are considered in R&M.24 0.07 245.21 0.89 3.4. The indices considered by RInfra-D for projecting O&M Expenses are as given in the table below: Table 96: Summary of Indices used by RInfra-D to project O&M Expenses Page 135 of 302 .4 RInfra-D further submitted that it considered Inflation Indices based on Consumer Price Index (CPI) and Whole Sale Price Index (WPI) for the purpose of escalating O&M Expenses. Govt.4. Govt. The data for WPI was taken from the Office of Economic Advisor. Cr) FY FY FY FY Particulars 2012-13 2013-14 2014-15 2015-16 R&M Expenses 200.83 244. RInfra-D considered mix of 60% CPI and 40% WPI for projecting A&G expenses.26 Total R&M Expenses 229. Inflation index based on CPI was considered.15 Add: Past Period Adjustments 30.12.79 213.Case No. For escalating Employee Expenses. of India.2 RInfra-D further submitted that the projected Repair and Maintenance expense for FY 2012-13 is then escalated by 7. of India.02% (Based on Wholesale Price Index (WPI) for the period 2007-12) to arrive at the Repair and Maintenance expenses for the period FY 2013-14 to FY 2015-16.4.00 Less: SCADA Charges from RInfra-T 0.

Case No.9 of 2013

MERC Order for RInfra-D for MYT for Second Control Period

Index Employee Expense Repairs and Maintenance Administrative Expenses

Basis CPI WPI Mix of CPI and WPI

Value 9.28% 7.02% 8.38%

3.12.5 Commission’s Rulings 3.12.5.1 The Commission accepts RInfra-D contentions that the O&M expenses in subsequent years cannot be approved at levels lower than the approved values of the past years. Although, the Commission is of the view that licensee should bring enhanced productivity in its operations and consequently should induce reduction in O&M expenses for controllable factors, however the increase on account of uncontrollable factors like wage revision of the past period and inflation, cannot be done away with. 3.12.5.2 The Commission notes the submissions of RInfra-D that it is still carrying out a number of its usual business activities for changeover consumers, which are as under:  Regular monthly meter reading of changeover consumers to validate the consumption data being shared by Tata Power Company as RInfra-D is responsible for maintaining the distribution system losses. RInfra-D contended that the migrated consumers are required to pay in kind only normative distribution system losses and not the actual.    Meter replacement during Joint Meter Reading (JMR), if consumer wants SDL (Supply Distribution Licensee) meter. Accompanying SDL representative for recovery of arrears and disconnect the supply if TPC-D dues are not paid by the changeover consumers; Accompanying SDL representatives for on-site activities such as meter testing, meter replacement, consumer complaints related to meter/metering equipment, etc.;

Page 136 of 302

Case No.9 of 2013 

MERC Order for RInfra-D for MYT for Second Control Period

Continued (and increased) vigilance efforts for changeover consumers, as SDL is unaffected by such theft as its losses are fixed at normative level which not even include commercial losses including theft of electricity;

Follow-up activities such as monitoring and improvement of power factor, etc. for changeover consumers, RInfra-D added that while poor PF of the changeover consumers overload the distribution of WDL, however it is SDL who retains PF surcharge recovered from the changeover consumers

Coordinating with SDL for jobs such as service shifting, load enhancement, etc. such as monitoring and power factor improvement for changeover consumers, etc.

3.12.5.3 The Commission observes that the assumption while framing Regulations was that there would be reduction in O&M cost owing the consumers switching over to TPCD and it will in turn lead to optimisation of O&M Cost. 3.12.5.4 The Regulation 100 of the part K of the MERC MYT Regulations, 2011 vests the Commission with the power to remove difficulties. The Regulation 100 is reproduced hereunder: “100 Power to remove difficulties If any difficulty arises in giving effect to the provisions of these Regulations, the Commission may, by general or specific order, make such provisions not inconsistent with the provisions of the Act, as may appear to be necessary for removing the difficulty. 3.12.5.5 The Commission exercising its power as provided under Regulation 100 of the MERC (MYT) Regulations 2011 relaxes the O&M norms for RInfra-D provided under Regulation 78.4.1 and Regulation 92.7.1. 3.12.5.6 RInfra-D in its reply to data gaps has submitted the actual O&M expenses for FY 2012-13 and certified Reconciliation statement and also submitted following justification to increase in O&M expenses:

Page 137 of 302

Case No.9 of 2013

MERC Order for RInfra-D for MYT for Second Control Period Average Growth rate for FY 12-13

Particulars Actuals as per ARR Wage Revision Impact Total

FY 10-11 FY 11-12 FY 12-13 388.5 32 420.5 427.04 52 479.04 592.49 (84) 508.49

6.15%

Particulars Actuals as per ARR Wage Revision Impact Total

FY 10-11 FY 11-12 FY 12-13 186.28 16.38 202.66 167.01 11.25 178.26 225.07 (27.63) 197.44

Average Growth rate for FY 12-13

6.83%

3.12.5.7 RInfra-D also submitted the A&G expenses for FY 2012-13 as Rs 153.93 Crore. 3.12.5.8 The Commission for the purpose of approving O&M cost has considered the actuals of FY 2012-13 and escalation rates of 6.15%, 6.83% for employee expenses and R&M, respectively, based on the average growth rate submitted by RInfra-D in the reply to data gaps mentioned above. The Commission has computed a escalation rate of A&G expenses based on 60% weightage of growth rate of employee expenses (6.15%) and 40% weightage of growth rate of R&M expenses (6.83%). The Commission has not considered wage revision impact of Rs 27.63 Crore on R&M expenses as submitted by RInfra-D, as RInfra-D has not substantiated its claim. The Commission directs RInfra-D to submit justification of the above mentioned wage revision impact with proper justification in the next tariff determination process for the consideration of the Commission, subject to prudence check. The Commission has applied same ratio for allocation to wires and supply business as submitted by RInfra-D and reduced SCADA charges from RInfra-T as submitted by RInfra-D in its Petition. 3.12.5.9 The O&M expenses approved by the Commission are as under: Table 97: O&M Expenses approved by the Commission (Rs Crore) Particulars FY 12-13 FY 13-14 FY 14-15 FY 15-16 Total O&M (Wires +Supply) 942.63 913.17 971.16 1032.86 Wires Business 636.48 611.41 649.01 688.95 Supply Business 306.15 301.77 322.16 343.91
Page 138 of 302

Case No.9 of 2013

MERC Order for RInfra-D for MYT for Second Control Period

3.13 Interest on Working Capital and Security Deposits 3.13.1 RInfra-D’s Submission 3.13.1.1 RInfra-D submitted that for the computation of the value of sum of the book value of stores, materials and supplies for FY 2012-13 it has considered the same amount as the actuals for FY 2011-12. For ensuing years an escalation rate is used which is based on the growth rate of the total line length (ckt-km) for the business. 3.13.1.2 RInfra-D submitted that it computed Interest on Security Deposit based on Consumer Security Deposit (CSD) estimates and interest rate considered. RInfra-D considered CSD for FY 2011-12, as submitted in its True-Up Petition in Case No. 124 of 2012. CSD for the period FY 2015-16 was estimated by escalating the FY 2011-12 values by the respective year consumer growth rate. 3.13.1.3 RInfra-D further submitted that it the current bank rate of 9% for the purpose of the forecast in accordance with Sub-clause c of the Regulation 35.4 of the MERC MYT Regulations, 2011: “Interest shall be allowed on the amount held as security deposit from retail supply consumers at the Bank Rate as on the date on which the application for determination of tariff is made.” 3.13.1.4 RInfra-D submitted the Interest on working capital for its Retail and Wires business as given in the table below for the period from FY 2012-13 to FY 2015-16: Table 98: Interest on Working Capital and Security Deposit for Wire & Retail Supply Business as submitted by RInfra-D (Rs. Crore) Particulars Interest on Working Capital-Wires Interest on Working Capital-Retail Total Interest on Working Capital FY 2012-13 70.26 21.03 91.29 FY 2013-14 84.93 20.92 105.85 FY 2014-15 84.92 18.86 103.78 FY 2015-16 91.14 20.24 111.39

3.13.2 Commission’s Rulings

Page 139 of 302

Case No.9 of 2013

MERC Order for RInfra-D for MYT for Second Control Period

3.13.2.1 The Commission has approved Interest on Working Capital and security Deposit, in accordance with Regulation 35.3 and 35.4 of the MERC MYT Regulations, 2011, the Interest rate on working capital was calculated at the prevailing State Bank Advance Rate (SBAR) which was 14.50% at the time of filing of MYT Petition, which is as under: “35.3 Distribution Wires Business: (a) The Distribution Licensee shall be allowed interest on the estimated level of working capital for the Distribution Wires Business for the financial year, computed as follows: (i) One-twelfth (1/12) of the amount of Operation and Maintenance expenses for such financial year; plus (ii) One-twelfth (1/12) of the sum of the book value of stores, materials and supplies including fuel on hand at the end of each month of such financial year; plus (iii) Two (2) months equivalent of the expected revenue from charges for use of Distribution Wires at the prevailing tariff; minus (iv) Amount held as security deposits from Distribution System Users. (b) Rate of interest on working capital shall be on normative basis and shall be equal to the State Bank Advance Rate (SBAR) of State Bank of India as on the date on which the application for determination of tariff is made. (c) Interest shall be allowed on the amount held as security deposit from Distribution System Users at the Bank Rate as on the date on which the application for determination of tariff is made. 35.4 Retail Supply of Electricity (a) The Distribution Licensee shall be allowed interest on the estimated level of working capital for the financial year, computed as follows: (i) One-twelfth (1/12) of the amount of Operation and Maintenance expenses for such financial year; plus

Page 140 of 302

Case No.9 of 2013

MERC Order for RInfra-D for MYT for Second Control Period (ii) One-twelfth (1/12) of the sum of the book value of stores, materials and supplies including fuel on hand at the end of each month of such financial year; plus (iii) Two (2) months equivalent of the expected revenue from sale of electricity at the prevailing tariff; minus (iv) Amount held as security deposits under clause (a) and clause (b) of sub-section (1) of Section 47 of the Act from retail supply consumers; minus (v) One (1) month equivalent of cost of power purchased, based on the annual power procurement plan: Provided that in case of power procurement from own Generating Stations, no amount shall be allowed towards payables, to the extent of supply of power by the Generation Business to the Retail Supply Business, in the computation of working capital in accordance with these Regulations. (b) Rate of interest on working capital shall be on normative basis and shall be equal to the State Bank Advance Rate (SBAR) of State Bank of India as on the date on which the application for determination of tariff is made. (c) Interest shall be allowed on the amount held as security deposit from retail supply consumers at the Bank Rate as on the date on which the application for determination of tariff is made.”

3.13.2.2 The summary of approved Interest on Working Capital and security Deposit is as under: Table 99: Interest on Working Capital for Wire & Retail Supply Business approved by the Commission (Rs. Crore) Particulars Retail Supply Wires Total FY 12-13 70.26 21.54 91.80 FY 13-14 72.65 24.91 97.56 FY 14-15 63.92 27.07 90.99 FY 15-16 52.78 29.43 82.21

Page 141 of 302

2 Commission’s Rulings 3.17 7.87 3.1 The Commission in its MYT Order shall provisionally approve Income Tax payable for each year of the Control Period. The said Regulation is reproduced below for reference: “34. 158 of 2011 the Commission approved income tax equivalent to an amount approved by the Commission in its Order in Case No.2. if any.14.17 7. as per latest Audited Accounts available for the applicant. Cr) Particulars Income Tax (Retail) Income Tax (Wires) Total Income Tax FY 2012-13 46.1.87 FY 2015-16 46. 2011 specifies that the Commission may provisionally approve income tax payable for each year of the MYT second control period based on the actual income tax payable as per the latest audited accounts and the variation between the actual and approved income tax shall be reimbursed at the time of mid-term performance review.14 Income Tax MERC Order for RInfra-D for MYT for Second Control Period 3.70 53.17 7.70 53.14. 3.87 FY 2013-14 46. 180 of 2011 dated 15 June. based on the actual income tax paid on permissible return as allowed by the Commission relating to electricity business regulated by the Commission.Case No.70 53.1.14.14. Page 142 of 302 . 180 of 2011.87 Crore (for wires and retail supply business put together) for RInfra-D was considered as allowable for the second control period in the Business Plan Order.53. In the Order in Case No. The same income tax amount of Rs.14. subject to prudence check. is as given in the table below: Table 100: Income Tax projections as submitted by RInfra-D (Rs.17 7.1 RInfra-D’s Submissions 3.1 RInfra-D submitted that in its Business Plan Order in Case No.2 The details of the income tax projections as submitted by RInfra-D. the Commission computed income tax based on the Profit before tax method and had allowed income tax on the segmental profit.9 of 2013 3. the MERC (MYT) Regulations.70 53.1 For computation of income tax for FY 2012-13 to FY 2015-16. 2012.87 FY 2014-15 46.

96%) in the year of recovery. Transmission licensees and Distribution licensees shall be reimbursed to /recovered from the Generating Companies. in accordance with the various Judgments issued by the Hon'ble ATE in this regard.14.2.14.3 In accordance with the MERC MYT Regulations.2.14.2 Since. Further. Accordingly. in the next tariff period when it is actually offered to tax.2 Variation between Income Tax actually paid and approved. 0 Crore to be allowed for recovery. subject to prudence check. Transmission Licensees and Distribution Licensees.00 FY 2015-16 0. 0 Crore considered for recovery for FY 2011-12. the Income Tax for FY 2012-13 to FY 2015-16 will have to be considered at the same level as approved by the Commission for FY 2011-12 (Rs 0 Crore). which has been grossed up for income tax. resulting in an amount of Rs. MERC Order for RInfra-D for MYT for Second Control Period 34." 3.00 Page 143 of 302 . Crore) Particulars Income tax FY 2012-13 0.00 FY 2014-15 0. the recovery of the Income Tax through the ARR and tariffs will be viewed as income by the Income Tax authorities. 2011... if any. 3. thereby.00 FY 2013-14 0. the Income Tax amount of Rs. the Income Tax component for FY 201112 has to be duly grossed up by the applicable tax rate (Corporate tax rate of 33.4 The income tax considered by the Commission for the years under consideration for the MYT second control period starting from FY 2012-13 to FY 2015-16 is as summarised in the table below:Table 101: Income tax approved by the Commission (in Rs.9 of 2013 . since that is the latest year for which audited accounts/ information has been submitted and prudence check has been undertaken by the Commission. the true up based on actual Income Tax paid by RInfra-D shall be considered at the time of mid-term review by the Commission.2. based on the documentary evidence submitted at the time of Mid-term Performance Review and MYT Order for the third Control Period. on the income stream of the regulated business of Generating companies.Case No.99% or MAT rate of 20. has been grossed up by the applicable tax rate. 3.

1. the Commission in exercise of its powers under Regulation 100 “Power to remove difficulties” of the MERC (MYT) Regulations.25% 9. In view of this. the distribution company is required to bill the income tax under a separate head called “Income Tax Reimbursement”.5 Further. Crore) FY FY FY FY Particulars 2012-13 2013-14 2014-15 2015-16 Opening balance of GFA % Contribution Contribution to Contingency Reserve 3644.2 The details of contribution to Contingency Reserves as submitted by RInfra-D.15.68 0.15 Contribution to Contingency Reserves 3. as per Regulation 34 of the MERC MYT Regulations.42 0.25 per cent and not more than 0.5 per cent of the original cost of fixed assets shall be allowed annually towards such appropriation in the calculation of aggregate revenue requirement:…” 3.Case No. it may lead to some problems in claiming expenses with income tax authorities.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 3.15. It is in accordance with Regulation 36.25% of opening GFA value as contribution to Contingency Reserve. 2011.15.11 3968. 2011 hereby orders that the difficulty in implementing Regulation 34 stands removed by allowing the inclusion of income tax expense as a part of the annual revenue requirement.32 0. Rs.25% 9.92 4317.9 0.25% 11.14.1 RInfra-D’s Submissions 3. However.1 RInfra-D submitted that it has projected for Contingency Reserve Contributions during the MYT plan period by considering 0. is as under: Table 102: Contribution to Contingency Reserves as submitted by RInfra-D (Wires.1. a sum not less than 0.1 Where the Transmission Licensee or Distribution Licensee has made an appropriation to the Contingency Reserve.91 Page 144 of 302 .25% 10.79 4762. 2011: “36.2. 3. if income tax is allowed as separate reimbursement.1 of the MERC MYT Regulations.

Case No.9 of 2013

MERC Order for RInfra-D for MYT for Second Control Period

Table 103: Contribution to Contingency Reserve as submitted by RInfra-D (Retail, Rs. Crore) Particulars Opening balance of GFA % Contribution Contribution to Contingency Reserve FY 2012-13 506.55 0.25% 1.27 FY 2013-14 534.68 0.25% 1.34 FY 2014-15 565.02 0.25% 1.41 FY 2015-16 600.24 0.25% 1.50

3.15.2 Commission’s Rulings 3.15.2.1 The Commission has approved the contribution to contingency reserves as 0.25% of approved Opening GFA, which is as under: Table 104: Contribution to Contingency Reserve approved by the Commission (Rs. Crore) FY 2012- FY 2013- FY 2014- FY 2015Particulars 13 14 15 16 Wires 9.09 9.90 10.69 11.61 Retail Supply 1.27 1.34 1.41 1.50 Total 10.36 11.23 12.10 13.11

3.16 Non-Tariff Income 3.16.1 RInfra-D’s Submissions 3.16.1.1 RInfra-D submitted that it analysed the various elements of Non-Tariff Income in FY 2011-12 and segregated the same into escalable and non-escalable components. The approach followed for forecasting non-tariff income by RInfra-D is as given below: a) For items such as miscellaneous receipts from consumers (except for any one time arrears), burnt meter charges, connection, reconnection fee, etc., which are effected by Schedule of Charges are forecast with a 10% escalation over FY 2011-12 value, considering the fact that the Commission has revised the Schedule of Charges.

Page 145 of 302

Case No.9 of 2013

MERC Order for RInfra-D for MYT for Second Control Period

b) For other items such as delayed payment charges, interest on delayed payment etc. similar approach of applying escalation factor of 10% is applied over the FY 2011-12 value, to arrive at the projections from FY 2012-13 onwards. c) Recovery from theft of power is not forecast with any escalation, but considered at the same level as per actuals of FY 2011-12. d) For projections of items such as rebate on power purchase and interest on contingency reserve investments, a specific approach has been adopted as under: i. Rebate on Power Purchase: It was included in Non-Tariff Income in FY 2010-11 and FY 2011-12 in Case No. 124 of 2012. This was in pursuance of a direction by the Commission in Case No. 180 of 2011. Further into the MYT Period as the power purchase cost is not forecast considering any rebate, an element of rebate has to be included in the Non-Tariff Income as prompt payment discounts would be availed by RInfra-D going forward as well. Therefore, in order to forecast rebate on power purchase, the rebate amount of FY 2011-12 has been determined as a percentage of total power purchase cost (except DTPS on which there is no prompt payment discount, being own generator) and the percentage as worked out for FY 2011-12 is considered same for each year of the MYT period going forward. ii. Interest on Contingency reserve investments: In the case of interest on contingency reserve investments, the weighted average rate of interest on the investments as per the Annual accounts for FY 2011-12, pertaining to distribution business, is arrived at. Next, the cumulative opening balance of contribution to contingency reserve as at 1April,2012 is considered and to this the yearly accretion to the contingency reserve for the second control period from FY 2012-13 to FY 2015-16 is added to arrive at the closing balance of contribution to contingency reserve at the end of each year. To this closing balance so arrived at the end of each year, the weighted average interest rate as mentioned above, is applied to arrive at the projected interest on contingency reserve investments for each year of the second control period from FY 2012-13 to FY 2015-16.
Page 146 of 302

Case No.9 of 2013

MERC Order for RInfra-D for MYT for Second Control Period

3.16.1.2 In reply to the Commission’s query, RInfra-D submitted that the All-in-Hire charges paid by BMC/MMRDA to RInfra-D on the Street Lighting Systems are accounted in the ‘Miscellaneous receipts’ category of Non-Tariff Income (NTI). Further, regarding submission of the details of actual recovery from theft of power in FY 2012-13, RInfra-D submitted the requisite information vide its reply dated 11 February, 2013 as given below: Table 105: Actual recovery from theft of power for FY 13 till January 2013 as submitted by RInfra-D Category LT-I Residential (Single phase) LT-I Residential (Three phase) LT-II (A) Commercial LT-II (B) Commercial LT-III Industrial LT-IV Industrial LT-V Advertisement & Hoardings LT-VII (A) Temporary Supply Religious LT-VII (B) Temporary Supply Others Total Recovery (Rs. Crore) 6.18 1.28 8.67 0.17 0.34 0.07 0.05 0.01 0.48 17.25

3.16.1.3 The details of Non Tariff Income as submitted by RInfra-D are as given in the table below for Wire and Retail supply business:

Table 106:Non-tariff Income as submitted by RInfra-D for Retail supply (Rs. Crore) FY 2012- FY 2013- FY 2014- FY 2015Particulars 13 14 15 16 Non-Tariff Income - Retail 155.08 164.47 174.45 189.30 Supply Table 107: Non-tariff Income as submitted by RInfra-D for Wires Business (Rs. Crore) FY 2012- FY 2013- FY 2014- FY 2015Particulars 13 14 15 16 Total Non-Tariff Income 13.76 15.44 17.29 19.32 Distribution Wires

Page 147 of 302

Case No.9 of 2013

MERC Order for RInfra-D for MYT for Second Control Period

3.16.2 Commission’s Rulings 3.16.2.1 The Commission has considered the income from land usage charges for EHV stations that is proposed to be paid by RInfra-T to RInfra-D as non-tariff income for its Wires business, as explained in Section 3.17 of this Order. RInfra-T will pay land usage charges for its receiving stations installed on the land owned by RInfra-D at Aarey, Versova and Ghodbunder EHV sub-stations. 3.16.2.2 The Commission has considered the rental income for Devidas lane office that is proposed to be paid by corporate business to RInfra-D as non-tariff income for its Supply business, as explained in Section 3.17 of this Order. 3.16.2.3 The Commission has accepted the submission of RInfra-D and approved the Nontariff Income, which is as under:

Table 108:Non-tariff Income approved by the Commission for Retail supply (Rs. Crore) FY FY FY FY Particulars 2012-13 2013-14 2014-15 2015-16 Non-Tariff Income - Retail Supply 162.51 172.65 183.44 198.29

Table 109: Non-tariff Income approved by the Commission for Wires Business (Rs. Crore) FY FY FY FY Particulars 2012-13 2013-14 2014-15 2015-16 Total Non-Tariff Income - Wires 20.67 22.35 24.20 26.23 3.17 Income from Other Businesses 3.17.1 RInfra-D’s Submissions 3.17.1.1 RInfra-D submitted that it considered recovery of costs presently being borne by it pertaining to certain common assets being used by RInfra-T. Such recovery would form part of the Income from Other Business. 3.17.1.2 RInfra-D submitted that its old Corporate Office building at Santacruz (E) is presently under construction. Accordingly, some of the Corporate Office employees (i.e. employees of other group companies of RInfra) are accommodated temporarily at RInfra-D’s Devidas Lane Office till such time the building at Santacruz is
Page 148 of 302

Case No.9 of 2013

MERC Order for RInfra-D for MYT for Second Control Period

constructed and occupied. A Minute of Meeting has been signed in this regard, which gives out the details of area to be occupied by corporate business, including shared facilities and the rental to be charged by RInfra-D for the same. This revenue is arising on account of optimum utilisation of distribution business assets (Devidas Lane building is a regulated asset of Distribution business). Accordingly, as per the Regulations, only 1/3rdof the rental should be included in the ARR and that too as “Income from Other Business”. For each year of the MYT Period, RInfra-D further submitted that such rental income has been projected as per the arrangement worked out between RInfra-D and the Corporate Business and same in given in the table below: Table 110: Income from Devidas Lane office as submitted by RInfra-D FY FY FY FY Particulars 2012-13 2013-14 2014-15 2015-16 Area occupied by Corporate business 53,089 53,089 53,089 53,089 (Office / Shared) Rate (per sq. ft) 116.67 128.34 141.17 155.29 Total Rental Income from Devidas Lane 7.43 8.18 8.99 9.89 office (Rs Crore) 3.17.1.3 Land Usage Charges: RInfra-D submitted that as a part of Mumbai System Strengthening schemes, RInfra-T had put up DPRs for EHV stations. Post approval from STU and MERC, schemes were taken up for commissioning. Conventional AIS EHV stations require over 40,000 sq mtr space. Such a large portion of land is not available within the City limits. Hence, RInfra-T innovatively based on the latest technology, vertically configured GIS EHV stations, which can be accommodated in just 10% of space than conventional AIS EHV stations require. RInfra-D submitted that the Commission in the proceedings of the Business Plan petition of RInfra-T in Case No. 159 of 2011 raised a query on the land leased / owned by RInfra-T. As part of the response vide letter dated 20 August, 2012 bearing reference no. RInfra/MERC/Business Plan/Transmission/003, RInfra-T submitted the requisite information. RInfra-T also submitted that an appropriate arrangement will be formalized with RInfra-D.

Page 149 of 302

Case No.9 of 2013

MERC Order for RInfra-D for MYT for Second Control Period

3.17.1.4 In view of above, RInfra-D submitted that it intends to enter into an arrangement by way of (Memorandum of Understanding) MoU, with RInfra-T, wherein the Land usage charges would be payable by RInfra-T to RInfra-D for the EHV Stations located on RInfra-D land. Similarly, Land usage charges would be payable by RInfra-D to RInfra-T for the installations located on RInfra-T land. Accordingly, the amounts receivable by RInfra-D from RInfra-T are considered under Income from other business, while the amounts payable by RInfra-D to RInfra-T for installations of RInfra-D on RInfra-T land have been considered in the Administration & General expenses, as part of the O&M for the second control period. RInfra-D submitted brief methodology as: a) The total plot area is considered after deducting setback area for each of the eight locations based on the documented Municipal approved copy. b) The plot occupied by RInfra-T and RInfra-D within these locations is determined based on their respective T&D installations on site. Land usage charge: c) The Commission in the ARR Order for FY 2011-12 for RInfra-D in Case No. 180 of 2011 has considered rent at the rate of 1% per month for the purpose of determining the rental income. d) RInfra-D accordingly has computed annual Land usage charge at 12% of the Land valuation in proportion to land occupancy of RInfra-T and RInfra-D. e) Value of the land is worked out based on present Ready Reckoner rate (in Rs. /sq. mtr) for each of the plots. The proportion of land occupancy by RInfra-T and RInfra-D is then multiplied by the rate to arrive at the land valuation. RInfra-D submitted that, RInfra-T wishes to submit that rates as applicable as per the Ready Reckoner on the date of entering into MoU shall be considered for the purpose of calculating the valuation. f) The NA tax and the Property tax paid for FY 2011-12 is considered to be the same for FY 2012-13 onwards and the same is allocated based on the proportion of Land occupancy between RInfra-T and RInfra-D.

Page 150 of 302

17. RInfra-D submitted that it has already intimated the Commission about the said arrangement vide letter dated 9 September.1. RInfra-D also submitted that it has entered into an arrangement with an advertising firm to put up advertisement kiosks on street light poles in Mira Bhayander area. and thereafter estimated. 3. an amount equal to one-third of the revenues from such Other Business after deduction of all direct and indirect costs attributed to such Other Business shall be deducted from the Aggregate Revenue Requirement in determining the wheeling charges of Distribution Wires Business of the Distribution Licensee:” 3. for installation of BTS towers and other equipment. 2011.7 In addition to above.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 3. 2011: “80. The same is considered constant up to FY 2014-15 and escalated by 25% for FY 2015-16 as per the terms of the Agreement and 1/3rd is considered as Income from Other Business for the purpose of reducing the ARR of distribution business in each year of the Plan Period. 180 of 2011.1 Where the Distribution Licensee has engaged in any Other Business.17. 1/3rd of rent received would be considered as Income and to reduce the ARR of distribution wires business (as this income pertains to utilisation of wires assets only.6 Further. The rental income has been considered as per the annual accounts for FY 2011-12. no adjustment is considered in retail business ARR).17. as per the MERC MYT Regulations.Case No.5 RInfra-D submitted that Land usage charges are related to usage of the Distribution Wires assets and therefore these were considered in the income from other business. as per the provisions of Regulations. Page 151 of 302 . RInfra-D submitted that it has let out its receiving station roof-tops to Reliance Communication Ltd. Accordingly. The transaction is on arms length basis and has been done under an agreement dated 21 April. 2010. The kiosks shall generate rental income for RInfra-D and shall also entail certain expenses of capital and maintenance nature.1.1. For FY 2011-12. the net income to be reduced from wheeling ARR is considered as per the Petition of RInfra-D in Case No. The rent agreement provides for an escalation in rental of 25% after five years.

89 6. 3.03 8. The Commission opines that this income is recognised only to correctly account the costs involved in business operations of the respective licensees.6 0.48 6.72 9.1 5. the expense and income is occurring between the regulated businesses of the same parent company in the same State.6 0.91 0.2 Commission’s Rulings 3.28 8.75 0.16 15.93 18.17.Case No. Cr) FY FY FY FY Particulars 2012-13 2013-14 2014-15 2015-16 Rental Income from Devidas Lane office Land Usage Charges (EHV Station) Income from Other Business . 3.8 The details of the Income from other business as submitted by RInfra-D during second Control Period of the MYT is as given in table below: Table 111: Income from other business as submitted by RInfra-D (Rs.17.66 17.rental income from RCom Towers Income from Other Business . as income from other business. Crore) Page 152 of 302 .2.85 5.3 The Commission has accepted the submission of RInfra-D for other heads under income from other business and approved the Income from other business as under: Table 112: Income from other business approved by the Commission (Rs.16 3.17.18 6.2 The Commission considering the above is not accepting the proposal of RInfra-D to treat this as income from other business and the same is approved as non-tariff income.91 0.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 3.1 RInfra-D in the present Petition has proposed to account for the land usage charges received from the RInfra-T in lieu of utilisation of RInfra-D’s land and rental income from Devidas lane office.99 6.1.16 15.16 5.6 0.91 0.43 6. In the present case.advertisement Kiosks Total (A) B – 1/3rd of (A) considered as income from other business 7. Also it is important to reflect the true expenditure for each of the licensed business and also recover the same from the respective licensee’s consumer.91 0.2.17.2.17.

1.1 Wire Availability 3. the Commission has also allowed Rs 2. vide Order dated 15 February. hence.1.1. 2012 in Case No. 177 of 2011 in the matter of petition filed by TPC-G.1.18.84.42 FY 2015-16 0.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period FY 2012-13 0. 2011 specifies as follows: Page 153 of 302 .5 The Commission has also considered interest on FAC charges that is passed on to consumers of Rs 2. while carrying out the truing up for FY10 and FY11.19 Wire Availability and Supply Availability 3. 3. 3.68 Crore as approved in its Order dated5 June 2013 in Case No.25 FY 2014-15 0.96 Crore as an expense item in ARR.25 FY 2013-14 0. as a cost in the present MYT petition.18. 3.50 Crore payable by RInfra-D. for approval of Aggregate Revenue Requirement for FY 2011-12 and Multi Year Tariff petition for the second Control Period from FY 2012-13 to FY 2015-16.3 RInfra-D has considered the above mentioned charges of Rs.Case No.18.19.18.96 Crore.56 Particulars Income from other business 3.4 The Commission in this Order has considered Rs 165. 3.18 Past Recovery of TPC-G 3.1 As regards Wires Availability.19.1 The Commission approved the past recoveries of the TPC-G.55 of 2012 on the grounds that the Commission did not give any specific directions to the distribution utilities for payment of such recovery and TPC-G was facing cash flow problems due to the past under recoveries.1.18. 3. Regulation 84 of MERC MYT Regulations. The quantum of the past recoveries sought by TPCG was of the tune of Rs 84.2 TPC-G filed a petition with the Commission under Case No.50 Crore.1. in FY 13-14. 105 of 2011. as FAC charged to the consumers includes this amount and since same is considered in the revenue side.

98%.” 3.19. Rate of Return on Equity Capital shall be reduced by 0.2 Wires Availability shall be computed in accordance with the following formula: Wires Availability = (1.1%: Provided further that for every 1 percent over-achievement in Wires Availability. a) b) Particulars SAIDI (in Hrs) Wires Availability (%) FY 2011-12 FY 2012-13 Actuals Actuals 1.1%.98 Page 154 of 302 . Rate of Return on Equity Capital shall be increased by 0. 2005.1.Case No. Period for Giving Supply and Determination of Compensation) Regulations.3 Wires Availability shall be measured over the course of a year and shall be expressed in percentage terms.No.1 The target Wires Availability for full recovery of Return on Equity Capital for Wires Business shall be as under: (a) Rural Areas 90 percent (b) Towns and cities 95 percent Provided that the Commission may stipulate a trajectory for achieving the target Availability for Wires Business of the Distribution Licensee as part of the Order on the Business Plan filed by the Distribution Licensee: Provided further that for every 1 percent under-achievement in Wires Availability.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period “84. as amended from time to time. which is shown as under S.1 99. 84.2 RInfra-D in reply to data gaps.98 2.6 99. 84.(SAIDI / 8760)) x 100 where Provided that the SAIDI shall be calculated in accordance with the definition specified in Maharashtra Electricity Regulatory Commission (Standards of Performance of Distribution Licensees. has submitted that its wires availability for last two year is 99.

9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 3. rate of Return on Equity Capital shall be increased by 0.1%.1 As regards Supply availability. Provided that for every 1 percent over-achievement in Supply Availability.Case No. Further. 2011 specifies as follows: “Supply Availability shall comprise of the following parameters in the proportion as mentioned below: (a) Base load Supply Availability 75 percent (b) Peak load Supply Availability 25 percent 97.19. Page 155 of 302 .2.19..e.3 As regards the target for Wires availability. i. the Commission has analysed the data submitted by RInfra-D. as may be determined by the Commission as part of the Order on the Business Plan filed by the Distribution Licensee: Provided that the Commission may stipulate a trajectory for achieving the target Supply Availability for Retail Supply of electricity as part of the Order on the Business Plan filed by the Distribution Licensee: Provided that for every 1 percent under-achievement in Supply Availability. the Commission has stipulated the trajectory of Wires Availability at 99. actuals for FY 2011-12 and FY 2012-13 from which it is observed that wires availability for RInfra-D is 99. the reduction and increase in ROE shall be computed below/ above the stipulated target based on the under/over achievement vis-a-vis the set target of Wires Availability by RInfra-D. rate of Return on Equity Capital shall be reduced by 0. 97.3 Base load Supply Availability shall be computed in accordance with the following formula: = (Actual Contracted Base Load Supply in MW) ÷ (Base load in MW) Provided that the base load shall be calculated based on unrestricted demand of a Distribution Licensee for the retail supply of electricity.1%.2 Target Supply Availability for full recovery of Return on Equity Capital for Retail Supply of electricity is in the range of 85 percent to 95 percent. 3.19.98% during the Control Period.98% for FY 2011-12 and FY 2012-13.1. Accordingly.2 Supply Availability 3. Regulation 97 of MERC MYT Regulations.

and in such a scenario RInfra-D must have Supply Availability of 100% during the Control Period.54 70.No. Crore) S. 3.59 1.52 33.69 Page 156 of 302 .” 3.66 1.4 Peak load Supply Availability shall be computed in accordance with the following formula: = (Actual Contracted Peak Load Supply in MW) ÷ (Peak load in MW) Provided that the peak load shall be calculated based on unrestricted demand of a Distribution Licensee for the retail supply of electricity.26 46.53 28.62 FY13-14 3578.1 Summary of ARR submitted by RInfra-D for FY 2012-13 to FY 2015-16 in its Petition is as under: Table 113: Aggregate Revenue Requirement submitted by RInfra-D.17 292.82 31.92 46.19.53 370.35 91.45 18.84 16.19.Case No.52 17.16 FY14-15 3276.41 4079. load shedding is not done.20 339.1.17 4337.69 16.62 4367.20.2 RInfra-D in reply to data gaps.34 4111.09 4272.20 Aggregate Revenue Requirement 3.17 278.22 1.64 20.2.37 304.intra-State Contribution to contingency reserves Total Revenue Expenditure Return on Equity Capital Aggregate Revenue Requirement FY12-13 3523.44 84.17 265.Retail Supply Business (Rs.27 4244.14 46. and the Distribution Licensees have been allowed to purchase high cost power to avoid load shedding in extreme cases.2.34 4337.93 46.84 311. 3.3 The Commission is of the view that in Mumbai Supply Area.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 97.62 18.50 4304. Any incentive/disincentive for achieving Supply Availability above/below the targeted Supply Availability shall be considered at the time of Truing-up.39 1.54 29.46 84.42 19. has submitted that its supply availability for last two year is 110% and 116%. 1 2 3 a) 4 5 6 7 8 9 10 11 Particulars Power Purchase Expenses Operation & Maintenance Expenses Depreciation Expenses Depreciation Interest on Long-term Loan Capital Interest on Working Capital and on consumer security deposits Income Tax Transmission Charges .17 307.16 FY15-16 3446.19 22.

14 1436.12 1225.70 9.21 20.No.50 4287.93 1324.62 259.71 4148.70 9.00 4117.11 981.91 13.05 1246. 12 13 14 15 MERC Order for RInfra-D for MYT for Second Control Period Particulars FY12-13 155.24 7.Case No.32 1208.12 143.76 5.66 15. Particulars FY 12-13 FY 13-14 FY 14-15 FY 15-16 1 2 3 a) 4 5 6 7 8 9 10 11 12 Power Purchase Expenses Operation & Maintenance Expenses Depreciation Expenses Depreciation Interest on Long-term Loan Capital Interest on Working Capital and on consumer security deposits Income Tax Contribution to contingency reserves Total Revenue Expenditure Return on Equity Capital Aggregate Revenue Requirement Less: Non Tariff Income Less: Income from Other Business Aggregate Revenue Requirement from Wires Business 633.61 242.86 7.48 152.47 0.30 0.No.33 18.28 684.52 1347.00 Less: Non Tariff Income Less: Income from Other Business Add: TPC-G Charge Aggregate Revenue Requirement from Retail Tariff Table 114: Aggregate Revenue Requirement submitted by RInfra-D.25 1461.39 FY14-15 174.00 FY15-16 189.10 20.79 1087.14 17.59 224.03 7. Crore) S.54 FY13-14 164.08 0.32 6.75 176.71 163.9 of 2013 S.70 10.29 279.72 741.92 1004.91 1182.55 19.75 166.07 Page 157 of 302 .23 202.29 5.Wires Business (Rs.45 0.70 11.03 631.88 21.92 7.44 5.19 3936.00 84.38 182.16 13 1190.59 227.

29 0.59 182. Crore) S.50 5513.77 343.00 5307.19 70.87 278.82 72. Crore) S.59 12.81 160.No.46 1 2 3 a) 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Power Purchase Expenses Operation & Maintenance Expenses Depreciation Expenses Depreciation Interest on Long-term Loan Capital Interest on Working Capital and on consumer security deposits Provisioning for Bad & Doubtful Debts Other Expenses Income Tax Transmission Charges .39 10.31 191.45 14.00 201.66 FY 13-14 3578.87 265.81 312.13 52.45 111.85 0.67 105.87 5458.62 6.13 FY 14-15 3276.00 0.84 943.00 53.87 307.(Retail Supply +Wires) Business (Rs.00 168.91 22.03 0.69 322.50 63.72 0.78 0.57 306.1.26 5342.85 FY 15-16 3446.17 195.2 Summary of ARR approved by the Commission for FY 2012-13 to FY 2015-16 in its Petition is as under: Table 116: Aggregate Revenue Requirement approved by the Commission.44 290.77 103.No.38 5226.intra-State Contribution to contingency reserves Total Revenue Expenditure Return on Equity Capital Aggregate Revenue Requirement Less: Non Tariff Income Less: Income from Other Business Add: TPC-G Charge Aggregate Revenue Requirement from Retail and Wires Business 3.39 0.87 223.00 53.37 301.22 13. 1 2 3 a) 4 5 Particulars Power Purchase Expenses Operation & Maintenance Expenses Depreciation Expenses Depreciation Interest on Long-term Loan Capital Interest on Working Capital and on consumer security deposits FY12-13 3559.00 0.77 18.15 271.41 5481.00 169.41 5486. Particulars FY 12-13 3523.43 15.28 84.23 208.84 FY15-16 3349.21 5167.00 53.69 Page 158 of 302 .43 91.00 0.87 292.66 11.15 16.16 20.00 53.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Table 115: Total Aggregate Revenue Requirement submitted by RInfra-D.37 938.67 5613.64 FY14-15 3197.00 5260.16 0.83 5.00 0.00 5584.42 5799.69 14.12 255.26 FY13-14 3262.40 16.53 0.20.Retail Supply Business (Rs.77 247.Case No.91 5.16 181.74 5.53 1111.20 1023.82 179.

33 4042.45 20.75 24.41 4011.00 390.27 1.64 1352.53 1164.91 0.43 0.61 4129.48 165.44 0.intra-State Contribution to contingency reserves Total Revenue Expenditure Return on Equity Capital Aggregate Revenue Requirement Less: Non Tariff Income Less: Income from Other Business Add:TPC-G Charge Interest on FAC charges Aggregate Revenue Requirement from Retail Tariff Table 117: Aggregate Revenue Requirement approved by the Commission.00 265.20 0.77 198.90 946.50 29.70 21.23 1.86 1264.42 688.51 28.51 0.63 183.41 27.48 0.14 4272.89 255.90 Page 159 of 302 .00 453.68 2.61 1079.69 26.19 4074.56 FY12-13 FY13-14 FY14-15 FY15-16 13 1152.30 31.27 4233.41 181.Wires Business (Rs.54 226.23 0.46 29.00 9.11 1.00 9.05 273.90 1173.88 1186.No.71 123.90 22.34 4099.59 130.Case No.08 4261.69 1008.25 611.09 946.00 428.73 113.10 3859.29 Transmission Charges .9 of 2013 6 7 8 9 10 11 12 13 14 15 16 Income Tax MERC Order for RInfra-D for MYT for Second Control Period 0.54 0.07 0.50 4239.56 24. Crore) S. 1 2 3 a) 4 5 6 7 8 9 10 11 12 Particulars Power Purchase Expenses Operation & Maintenance Expenses Depreciation Expenses Depreciation Interest on Long-term Loan Capital Interest on Working Capital and on consumer security deposits Income Tax Contribution to contingency reserves Total Revenue Expenditure Return on Equity Capital Aggregate Revenue Requirement Less: Non Tariff Income Less: Income from Other Business Aggregate Revenue Requirement from Wires Business 636.67 0.25 118.13 1325.65 165.62 33.29 1240.35 0.39 1.96 4099.11 172.25 649.00 10.02 240.01 198.95 218.00 11.09 4125.60 162.

00 5251.99 146. Crore) FY12-13 S.69 971.38 207.46 224.38 97. Particulars Approved FY13-14 Approved FY14-15 Approved FY15-16 Approved 1 2 3 a) 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Power Purchase Expenses Operation & Maintenance Expenses Depreciation Expenses Depreciation Interest on Long-term Loan Capital Interest on Working Capital and on consumer security deposits Provisioning for Bad & Doubtful Debts Other Expenses Income Tax Transmission Charges .54 0.89 91.15 138.00 0.00 453.00 0.00 195.17 0.00 390.16 219.12 0.77 1032.37 913.00 265.11 11.59 82.68 2.68 306.63 182.00 428.19 5307.10 5020.64 0.79 5625.25 165.00 0.00 0.27 12.(Retail Supply +Wires) Business (Rs.00 0.00 0.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Table 118: Total Aggregate Revenue Requirement approved by the Commission.49 5316.36 5180.00 0.91 90.00 0.51 270.42 0.39 10.25 1.Case No.19 287.52 0.62 5289.17 199.70 133.23 5045.23 13.intra-State Contribution to contingency reserves Total Revenue Expenditure Return on Equity Capital Aggregate Revenue Requirement Less: Non Tariff Income Less: Income from Other Business Add: TPC-G Charge Add: Interest on FAC Aggregate Revenue Requirement from Retail and Wires Business 3559.41 127.00 3349.86 240.99 5435.04 183.96 3197.38 Page 160 of 302 .91 0.No.56 0.32 5400.00 3262.39 5099.57 942.80 0.11 5318.06 254.00 0.

124 of 2012 (Final Truing up of FY 2010-11 and FY 2011-12) as Rs.72 Crore.2012 may be amended to read as under: “11. 4.1. whether identified during truing-up process or allowed subsequently to the licensee by any higher authority or on account of deferment of recovery by the State Commission itself.1.27 Crore.9. 3674. should be eligible for carrying cost.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 4.37 Crore as already approved Revenue Gap by the Commission in its Order in Case No.6. 180 of 2011 dated 15 June 2012.6 of the judgment dated 13. 2661. 2013. 1795.3 RInfra-D further submitted that the Hon’ble ATE clarified that all legitimate expenditure.1 RInfra-D submitted Regulatory Asset/Revenue Gap from FY 2006-07 till FY 201112 without carrying cost till FY 2011-12 which was as claimed in its Petition in Case No. 11. It included Rs.Case No. Further. The State Commission shall decide the claim of the appellant on the above principles” 16. The relevant extracts of the Judgment were submitted by RInfra-D as given below: “15.2 RInfra-D in this Petition submitted cumulative Regulatory Asset including carrying cost till FY 2011-12 as Rs. The utility is entitled to carrying cost on its claim of legitimate expenditure if the expenditure is: accepted but recovery is deferred e.1.5. and disallowed by the State Commission but subsequently allowed by the Superior authority. Accordingly. The State Commission is directed to pass consequential order…” 4.5 & 11.1. interest on regulatory assets.1. RInfra-D applied carrying cost on cumulative revenue gap till FY 2011-12 in accordance with the Hon’ble ATE Judgment in RInfra-D Review Petition No. paragraphs 11.1.g. Page 161 of 302 .202/203 of 2010 dated 2 January. RECOVERY OF REGULATORY ASSET 4. The Review Petition is allowed. claim not approved within a reasonable time.1 Quantification of Regulatory Asset till FY 2011-12 4. Revenue gap as a result of allowance of legitimate expenditure in the true up.13 on Appeal No.

45 98.49 Page 162 of 302 .863. i.00% 314.61 70% 30% FY 2010-11 551.75% 61.75% 1.86 14.84 12.46 13.1.67 39.302.84 230.15 11.Case No.08 16% 27.19 16% 7. Crore) S. 121 of 2008 Debt portion Equity Portion Carrying cost for Debt portion Interest rate for respective years Opening Balance Additions for the year Interest Closing Balance Carrying cost for Equity portion ROE (%) for respective years Opening Balance Additions for the year FY 2006-07 23.75% 16.1.15 386.03 155.1. 4.15 301. 2005.34 16% 7.21 165. by considering the respective year State Bank Advance Rate (SBAR) as the cost of debt and the rate of return on equity capital as prevailing for the period from FY 2006-07 to FY 2011-12.60 16% 138.47 70% 30% FY 2011-12 511.50% 17.66 1.6 RInfra-D submitted cumulative Revenue Gap with Carrying Cost accrued till FY 2011-12 as given in the table below: Table 119: Cumulative Revenue Gap with Carrying Cost till FY 2011-12 as submitted by RInfra-D (Rs.07 22.67 11.302.46 832.67 70% 30% FY 2009-10 1.1.90 17.4 RInfra-D submitted that the cumulative revenue gap till FY 2011-12 including carrying cost.08 204.5 RInfra-D further submitted that since FY 2012-13 is over and the new MYT tariff would be applicable from FY 2013-14 onwards.77 0.863.44 16% 849.85 4.68 1.86 358.33 2.76 17.188.e. 1 Particulars Revenue gap Debt portion Equity Portion Revenue Gap for FY 08-09 as per order of MERC in Case No.1.41 153.523.03 10. FY 2013-14 would be the year when the recovery of Regulatory assets would commence and carrying cost needs to be worked out on different elements of Revenue Gap from the year of accrual of such gap up to the middle of FY 2013-14. 16% for both Distribution Wires as well as Retail Supply business as per the Maharashtra Electricity Regulation Commission (Terms & Conditions of Tariff) Regulations.33 356.64 70% 30% 2 680.75% 1. 4.03 175.95 70% 30% FY 2007-08 56.93 70% 30% FY 2008-09 328..No.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 4.1.58 16% 578.55 314.32 61.11 476.

674.36 FY 2010-11 105.2 In accordance with Hon’ble APTEL Judgment dated 20 May 2013 in Appeal no.No. the Commission has allowed additional sharing of efficiency gains of Rs 11.29 FY 2008-09 12.42 S. Hence.7 RInfra-D vide its letter reference no RInfra-D/ MERC/ MYT FY 13-16/ 025 dated 23 May 2013.2 Commission’s Rulings 4.1 The Commission in its Order dated 4 April 2013 in Case 124 of 2012.23 Crore.1.18 1. 2005 and MERC MYT Regulations.95 Crore and same has been considered for the purpose of this Petition by the Commission.1. 85 of 2012.151.61 27. 4. submitted that Hon’ble APTEL in its Judgment dated 20 May 2013 in Appeal No 85 of 2012 held that “The third issue regarding non-consideration of assessed sale for the FY 2009-10 and 2010-11 is decided in favour of the Appellant.08 3.2.1. 4. The cumulative Page 163 of 302 . has approved total Regulatory Asset till FY 2011-12 as Rs 2451.1.28 138.2.43 FY 2007-08 2.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period FY 2006-07 0.” 4.23 Crore. as there is no provision in MERC Tariff Regulations.1.21 1.8 RInfra-D further in the above mentioned letter estimated the total additional amount to be allowed as Rs 11.79 FY 2009-10 83.3 The Commission has not considered the proposal of RInfra-D for allowance of additional Return on Equity equivalent 16% return on 30% of the Regulatory Asset. Interest Particulars Closing Balance Total Revenue Gap/Regulatory asset with Carrying Cost 4.1.33 452. regarding issue of allowance of efficiency gains on assessed sales also.75 849.26 FY 2011-12 148. 4. 2011 to allow such additional ROE.41 2.1.45 89.880. The State Commission shall consider the assessed energy from unauthorized uses of electricity which has been detected by the vigilance action as sale of electricity in computing the Distribution Loss.2.Case No.57 7.713.76 25.30 578. the Commission has allowed interest rate for computation of carrying cost equivalent to the interest rate allowed by the Commission for calculation of interest on working capital requirement in respective years in the Orders of the Commission.

32 100% FY 08-09 328.611.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Regulatory Asset after including carrying cost approved by the Commission till FY 2011-12 is as under: Table 120: Cumulative Regulatory Asset with Carrying Cost till FY 2011-12 as approved by the Commission (Rs.16 69.71 100% 680.95 100% FY 07-08 39.611.42 2.187.40 100% 10.24 11.24 25.835. 2011.67 100% FY 09-10 1.11 FY 10-11 529.53 1.1 Proposed Recovery Mechanism 4.14 3377.72 12. 121 of 2008* Debt portion Carrying cost for Debt portion Interest rate for respective years Opening Balance Additions for the year Carrying Cost Closing Balance Total Regulatory asset with Carrying Cost FY 06-07 23.71 219.00% 428.23 1.187.42 Crore till FY 2011.Case No.835.23 428.12.29 25.67 29.40 411.13 100% FY 11-12 354.75% 23.11 680.13 246.84 428. between RInfra-D Own consumer and Changeover consumers based on ratio of Own sales and Changeover sales of RInfra-D for FY 2011-12.76 2.14 4. as given in the table below: Table 121: Bifurcation of Regulatory Asset to Own and Changeover consumers as submitted by RInfra-D Page 164 of 302 .3 Regulatory Asset Recovery Mechanism 4. Crore) Particulars Revenue gap Debt portion Revenue Gap for FY 08-09 as per order of MERC in Case No.835.1.D proposed to apportion the Cumulative Regulatory Asset of Rs 3674.24 39.42 354.3.3.23 13. due to the phenomenon of migration/changeover occurring as an outcome of the Supreme Court ruling allowing TPC-D to supply power in the common area of supply between RInfra-D and TPC-D and also the ruling of the Commission in the Order in Case No. the Commission classified consumers into three groups for the purpose of determining the recovery of cumulative revenue gap/regulatory assets. RInfra.42 14.32 3377.53 11.75% 1.59 1. 72 of 2010 dated 29 July.32 5.75% 69.53 529.72 69.50% 25.75% 2.72 328.1 RInfra-D submitted that in Order in Case No. 50 of 2009.611.95 1. detailing the operating procedures to be followed in case of changeover.

Crore) Closing Balance (Rs.593.1.29 183.3.Case No.14 1.00 753.93 2.5%.3 RInfra-D has estimated the carrying cost from FY 2012-13 onwards considering 70:30 debt: equity and weighted average cost of capital as 14.14 2. Crore) Recovery from opening balance (Rs.57 679.58 496.3. Cr) 3.480.29 716.80% 2.43 496.14 36.78 383.71 532.80% 2.72 716.488. 4.674.2 RInfra-D proposed the recovery of the Revenue Gap over the period FY 2012-13 to FY 2018-19.09 2.86 496.72 496.33 Particulars Opening Balance of recovery in FY13 FY 2011-12 Own Sales FY 2011-12 Change Over Sales Revenue Gap (RInfra-D Own consumers) Revenue Gap (RInfra-D Changeover consumers) 4.e.593. Crore) Total Recovery (Rs.09 383.14 496.14 496.43 Page 165 of 302 . the recovery was spread over 6 years.43 FY 2016-17 14.39 2. RInfra-D proposed that Regulatory Assets are recovered as a separate line item and not merged with retail tariff.80% 992.58 716.593.80% 2.386. there will be further accumulation of interest (carrying cost) on the outstanding average balance of each year.14 110.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Amount (in Rs.43 FY 201819 14.43 826.29 496.43 FY 2014-15 14.01 716.081.15 716.43 257.14 606.80% 496.42 6.09 1.80% 1.58 330. The recovery towards Regulatory Assets including Carrying Cost for its Own Consumers as submitted by RInfra-D is given in the table below: Table 122: Regulatory Asset Recovery for Own Consumers as submitted by RInfra-D Particulars Carrying Cost rate Opening Balance (Rs.86 900.976.663.14 1.43 FY 2015-16 14.72 403.5% based on SBI Advance Rate (SBAR) and rate of return on equity invested as 15.984. over a period of six years from FY 2013-14 so as to prevent tariff shock to the consumers.1.80% 1.78 0.43 FY 2017-18 14.488. Crore) Carrying cost for the year (Rs.00 FY 2013-14 14.984. Crore) Smoothened recovery FY 2012-13 14. RInfra-D submitted that since..480. i.14 992.80% based on the rate of raising debt of 14.86 716.

9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period FY 201819 Particulars (Rs.90 FY 2018-19 14.4 RInfra-D further submitted that for the estimation of sales from Changeover consumers it considered that a large group of consumers would convert to Group III (i.33 1. per unit Recovery (Rs.36 6.034.68 1.90 - 1. even though actual Switchover may not have happened till then.241.90 206. Crore) Closing Balance (Rs.09 1. The recovery towards Regulatory Assets for Changeover consumers as submitted by RInfra-D is given in the table below: Table 123: Determination of Regulatory Asset Charge for Changeover submitted by RInfra-D Particulars Carrying Cost rate Opening Balance (Rs.80% 413.1.80% FY 2013-14 14.80% 206.90 413.80% FY 2014-15 14.Case No.020.69 FY 2016-17 14.790. / kWh) FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 6. RInfra-D has submitted that all sales – Own or Migrated were considered for ex-ante determination of Regulatory Asset Charge by RInfra-D.081.e.69 206.80% 620.593.1.90 206.346.06 7.80% FY 2015-16 14.1.3.90 206.79 206. Crore) Recovery from opening balance (Rs. Crore) RInfra-D Own sales (MU) Avg. 4.33 1. when the same has not yet happened and if the same conversion to Group III is assumed. RInfra-D would start charging the same to change-over consumers.37 1.48 Page 166 of 302 . the sales from Changeover consumers would significantly decline and the per-unit Regulatory Asset Charge would substantially increase.90 620.48 206.034.6 RInfra-D further submitted that since the Regulatory Asset Charges would be published and come into effect immediately upon issue of MYT Order. 4.3.58 206.5 RInfra-D also submitted that Regulatory Asset Charge cannot be fixed assuming such a large scale conversion to Group III.90 827.09 6.34 1. 151 of 2011.58 1. FY 2012-13 14.02 4.081.80% 827.79 FY 2017-18 14. switchover to the other distribution licensee’s network) due to effect of Order in Case No.3.

1.31 298. the outstanding un-recovered regulatory asset amount from such consumer shall be recovered in the following manner: Balance Recovery = ΣA * Bi * Ci (in Rs) A .Case No.93 252.587. per unit Recovery (Rs.8 RInfra-D proposed that during the recovery period if any consumer terminates its contract with RInfra-D.07 298.Balance recovery period (in months) for year ‘i’ Ci .05 3.3.76 137. Crore) Smoothened recovery (Rs.31 222.45 298.9 RInfra-D proposed that a) The outstanding Regulatory Asset liability would be adjusted with the Consumer Security Deposit maintained by consumer with RInfra-D as on date of termination of the contract.79 344. Page 167 of 302 .1.91 0. / kWh) MERC Order for RInfra-D for MYT for Second Control Period 160. which was determined by dividing the consumer category’s approved ABR by the overall ACoS of RInfra-D for any given year.236.7 RInfra-D further submitted that the actual charge applicable to a consumer category would be dependent on the “K” factor.04 160. In such case.076.69 298. After adjustment of the same.88 0.9 of 2013 Crore) Carrying cost for the year (Rs.Charge specified for relevant category (in Rs/unit) for year ‘i’ 4.30 3.04 0.1. 4. monthly consumption for last 12 months (or available period if less than 12 months) (in units) Bi .76 76. the Charge specified “Ci” would be discounted for the future carrying cost included in the said charge.Avg.55 283. Crore) Total Migration Sales (MU) including Switchover Sales Avg.41 375.83 298.17 314.83 4. the balance outstanding liability could be cleared by the outgoing consumer in one goes as indicated in the formula above.76 3. Crore) Total Recovery (Rs.76 45.00 168.76 107.3.92 0.409.21 298.3.16 3.76 15.

retail supply consumers and Changeover consumers.2 Commission’s Rulings 4.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period b) If the consumer.. however. 4. within the six-year period of recovery proposed. the applicability of the charges to recover the regulatory assets for the above Groups and the rationale for the same are discussed below: Page 168 of 302 . the recovery would continue in the normal manner at the specified charge multiplied by month’s consumption of such consumer. RInfra-D further proposed that the collection of charges levied on Changeover and Switchover consumers (who opt for future monthly payments) and the remittance of the same to RInfra-D would be the responsibility of the licensee supplying power to such consumer. At the end of the six-year recovery period.3. the same shall remain identified with the premises for the purpose of recovery. however. however.1 The Commission is the opinion that the Regulatory Asset needs to be collected from the consumers connected to the RInfra-D network. 4. i.2. amount set off (recovered) during the year and the closing balances each year.10 RInfra-D further submitted that any under-recovery or over-recovery each year.3.Case No. the amount remains un-recovered. the same would be absorbed within RInfra-D’s ARR. was to remain within the Regulatory Asset basket only and not passed on to the retail ARR.3. for any reason. If. opts for monthly payment of Regulatory Asset charge.e.3.2. The relevant extracts of the Commission’s ruling in Case No.1. if there remained any over or under-recovery vis-à-vis the approved Regulatory Assets.2 The Commission in its Order in Case 72 of 2010 has ruled that Regulatory Asset can be recovered from Group I and Group II consumers. 4. RInfra-D also proposed that a separate Regulatory Asset recovery account would be maintained which shall maintain opening balance of Regulatory Asset plus interest. 72 of 2010 is as given below: “h) Given this background.

94 644.47 Page 169 of 302 . Accordingly.2. since they are no longer consumers of RInfra-D.933. the Commission is also of the opinion that Regulatory Asset needs to be borne equally by Direct Consumers and Changeover consumers. and charges can be levied by a licensee only on a 'consumer'. since they continue to be consumers of RInfra-D for Wires iii) Group III: will not have to pay the charges for recovery of regulatory assets. 4.3.377.47 FY 1516 14. both for Wires as well as Supply.35 644.41 644. the Regulatory Asset Liability needs to be shared equally by all the consumers of RInfra-D network (Changeover and Direct consumers).2. since they continue to be consumers of RInfra-D.2.866.3.50% 1.47 FY 16-17 14.5% as cost of debt as submitted RInfra-D for the purpose of calculating the carrying cost for the second Control Period.50% 2.50% 644.577.50% 3. ii) Group II: will have to pay the charges for recovery of regulatory assets. the Commission has considered the Regulatory Asset would be funded entirely by debt component. the Commission has approved recovery of Regulatory Asset Charge from Group I and Group II consumer.5 The Commission has accepted the interest rate of 14.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period i) Group I: will have to pay the charges for recovery of regulatory assets. However.50% 3. which are connected to the RInfra-D network and sourcing power either from RInfra-D or TPC-D.2.288.47 FY 17-18 14.14 FY 13-14 14. Also.47 FY 14-15 14.222.3.50% 1.88 644. as explained earlier in this section.3. Hence. 4.” 4.50% 3.47 644. in the subsequent years. RInfra-D should propose recovery of the regulatory asset from Group I and Group II consumers.83 644. either for Wires or Supply.Case No. 4.6 The Commission has approved Regulatory Asset Charge to be recovered from Retail consumer and Changeover consumers of RInfra-D as under: Table 124: Regulatory Asset Charge approved by the Commission (Rs Crore) Particulars Carrying Cost rate Opening Balance Recovery from opening balance FY 1213 14.4 The Commission notes that RInfra-D has not submitted any rationale for apportionment of the cumulative revenue gap between RInfra-D own consumers and changeover consumers based on ratio of sales from RInfra-D and changeover consumers of FY 2011-12.3 Hence.47 FY 18-19 14.

19 0.82 644.27 0.34 0.19 0.35 513.Advertisements and Hoardings LT VI: LT -Street Lights LT-VII (A): LT -Temporary Supply Religious LT-VII (B): LT -Temporary Supply Others LT VIII: LT .48 0.69 489.82 46.20 924.09 0.38 0.04 0.664 0.47 1.Public Services HT HT I: HT-Industry HTII : HT.99 924.31 1.064.Case No.64 924.05 1.84 2.78 1.Below Poverty Line LT -I Residential 0-100 101-300 301-500 501 and above LT II (a) .87 1.92 1.01 1.56 0.40 1.62 878.Temporary Supply 0.Commercial HT III: HT-Group Housing Society HTIV : HT .229 0.09 924.03 1.05 1.3.28 1.31 1.27 0.07 971.377.17 1.64 0.17 0.9 of 2013 Closing Balance Carrying cost for the year Total Recovery Smoothened recovery RInfra-D Own sales and Changeover Sales Recovery charge per unit 3.84 2.Crematorium & Burial Grounds LT IX: LT -Agriculture LT X.89 1.46 0.22 0.82 10.0-20 kW LT II (b) -> 20 to 50 kW LT II (c) .52 1.93 2.14 489.39 1.36 0.04 1.22 0.93 0.12 1.75 0.2.00 2.52 0.12 1.above 50 kW LT III .47 140.141 0.97 1.84 1.82 11.52 Page 170 of 302 .84 1.44 924.41 327.77 0.69 1.222.19 0.12 1.158.85 2.577.91 2.54 924.74 0.82 10.94 233.07 0.08 2.86 1.288.82 1.82 4.84 1.17 784.23 0. which is as under: Table 125: Regulatory Asset Charge approved by the Commission (Rs/kWh) Particulars FY 13-14 FY 1415 FY 15-16 LT LT I .46 1.98 1.24 1.7 The Commission is also of the opinion that Regulatory Asset Charge shall be recovered from the consumers on a proportionate basis.LT Industrial above 20 kW LT-V : LT.LT Industrial upto 20 kW LT IV .72 691.86 0.69 MERC Order for RInfra-D for MYT for Second Control Period 3.91 1.08 0.38 1.933.97 0.88 420.00 1.

the recovery of RAC from such consumers shall stop. Recovered Regulatory Asset and closing balance of Regulatory Asset for a year.11 As regards to the proposal of RInfra-D that outstanding Regulatory Asset liability would be adjusted with the Consumer Security Deposit maintained by consumer Page 171 of 302 . which is one of the fundamental assumptions in accounting on the basis of which financial statements are prepared.2.12 1. the direct retail sale consumers and changeover consumers. 4.2. the Commission is also of the opinion that a distribution licensee should be considered to be operating on a ‘Going concern basis’.3.8 The Commission has approved RAC as a separate charge.Case No. Further.01 Particulars HT .19 1.e. it should be a separate charge and not merged with the retail tariff. i.3. 4.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period FY 1415 1.. the consumers will be paying Regulatory Asset Charge till they are connected to the RInfra-D distribution network as Direct or Changeover consumers and the day consumer terminates its contract. the Regulatory Asset Charge approved by the Commission shall be levied on energy consumption of the direct consumers and changeover consumers connected to the RInfra-D network on a monthly basis and not after termination of contract with RInfra-D.2.2. Hence. the Commission has approved RAC as a separate charge and directs RInfra-D to maintain a separate account for Regulatory Asset Charge recovery. as this liability pertaining to the past period needs to be borne by consumers who are connected to the RInfraD distribution network. 4. The Commission also notes that there would be new consumers being added to the consumers who will also be paying Regulatory Asset Charge. if consumers decides to terminate its contract.01 1.3.10 As regards to creation of a liability on a consumer.Railway HT – Public Services FY 13-14 1.19 4.9 The Commission is also the opinion that RAC as a separate line item in Tariff is also required to enable RInfra-D to maintain a separate regulatory asset recovery account and RInfra-D shall maintain the opening balance of Regulatory Asset allowed including carrying cost for a year.3. Hence. For levying the RAC to the changeover consumers.12 FY 15-16 1.

Case No. the Commission has clarified that the Regulatory Asset charge cannot be recovered after termination of contract with RInfra-D. hence cumulative Regulatory Liability on such consumers shall not be applicable. Page 172 of 302 .9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period with RInfra-D as on date of termination of the contract.

88 5.190.07 7.66 1.26 1.14 7. which are as under: Table 126: Existing Wheeling Charges as submitted by RInfra-D Particulars Wheeling Charges (Rs per kWh) HT 0.3 RInfra-D has proposed that the recovery would be in the proportion of energy sales for the respective years as projected in the MYT Petition.67 55% 45% 728.316.1 RInfra-D submitted that the Commission vide its Order in Case No. 121 of 2008 dated 22 July 2009 has last determined the wheeling charges to be paid by consumers who are connected to the RInfra-D’s network.160.2 RInfra-D further submitted that for the purpose of estimation of income from wheeling charges. For the remaining years of the second Control Period.17 1.Case No.23 Page 173 of 302 . The Wheeling Charges for the Second Control Period from FY 2012-13 to FY 2015-16 as submitted by RInfraD is as given in the table below: Table 127: Wheeling Charges as proposed by RInfra-D for the remaining part of Second Control Period Particulars Determination of Wheeling Charges Revenue Requirement from Wire Business (Rs Crore) Total Sales (Own + Migration) (MU) Wheeling Charges per unit (Rs/kWh) Distribution of Charges between HT and LT Network GFA attributable to HT network (Rs Crore) GFA attributable to LT network (Rs Crore) Charge recoverable for HT Network (Rs Crore) Charge recoverable for LT Network(Rs Crore) FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 1.90 55% 45% 654.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 5.568.55 55% 45% 674.26 551.422. it has not considered any revision in wheeling charges for FY 2012-13. i.84 646.50 1.e.46 LT 0.324.1 RInfra-D submission on Wheeling Charges 5.1.1.1.27 595.1.86 55% 45% 789.93 8.57 535.436. TARIFF PHILOSOPHY 5.40 1. 5.1.1.81 1..84 1.1.12 9.1 Wheeling Charges and Wheeling Losses 5. from FY 201314 to FY 2015-16.225. RInfra-D has proposed to recover its Wires revenue requirement from consumer connected to the RInfra-D network including RInfra-D Own consumers and Changeover consumers through wheeling charges.

664.89 0. 5.29 FY 15-16 Revised 1.36 523.325.24 596.24 77.58 1.72 64.93 55% 45% 682.156.04 1.670.297.74 FY 14-15 Revised 1.20 1.33 69.65 Page 174 of 302 .92 842.88 0.99 5.140.86 739.83 1.4 RInfra-D has submitted the wheeling losses of 1.Case No.29 10.111.00 78.228.829.2.125.46 0.68 6.60 6.07 558.64 1.1.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 Particulars Distribution of Charges between HT and LT consumers HT Sales (MU) LT Sales (MU) Charge recoverable for HT consumers (Rs Crore) Charge recoverable for LT consumers (Rs Crore) Wheeling Charges applicable/proposed HT Category (Rs/kWh) LT Category (Rs/kWh) 1.1.152.66 8.18 1.53 55% 45% 640.164.259.29 645.89 1.94% for HT Category and 9% for LT Category.2 Commission’s Rulings 5.53 Revenue Requirement from Wire Business Total Sales (Own + Migration) (MU) Distribution of Charges between HT and LT Network GFA attributable to HT network GFA attributable to LT network Charge recoverable for HT Network (Rs Crore) Charge recoverable for LT Network(Rs Crore) Distribution of Charges between HT and LT consumers 1.90 11.1.00 1.84 7.1 The Commission has accepted the methodology suggested by RInfra-D and approved wheeling charges are as under Table 128: Wheeling Charges approved by the Commission for second Control Period (Rs Crore) Particulars FY 12-13 Existing FY 13-14 Revised 1.27 1.06 55% 45% 729.13 10.240.317.1.358.

44 215.2 Cross Subsidy Surcharge 5.312 8.63 1. irrespective of whether they are own consumers or changeover consumers. the Commission rules that the applicable wheeling charges will be shown separately in the bills of all consumers.51 255.33 1.88 0.576 9.65 1.1.081.35 1041 3168 67.46 0.24 0.Case No.59 319.64 1.148.2.45 FY 14-15 1. 5.2. so that the consumers are made aware of the tariffs payable for creation of the distribution infrastructure.95 930 2617 58.27 879 2449 40.1.223.829 82.95 5.84 1.00 FY 13-14 1.1 RInfra-D’s Submissions 5.653 102.1 RInfra-D submitted the following formula for estimation of Cross Subsidy Surcharge with detailed explanations in its MYT Petition as given below: CSS = T – [C / (1-L %) + D] Where.29 377.3 Further.429 9.76 FY 15-16 1.94% for HT Category and 9% for LT Category.2.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Particulars HT Sales (MU) LT Sales (MU) Charge recoverable for HT Network (Rs Crore) Charge recoverable for LT Network(Rs Crore) Wheeling Charges HT (Rs/ kWh) LT (Rs/ kWh) Revenue From Wheeling Charges of Changeover Consumers HT Sales (MU) LT Sales (MU) Charge Recovered from HT Consumers Charge Recovered from LT consumers Total Revenue from Wheeling Charge Recovered (Rs Crore) from Changeover Consumers FY 12-13 1.22 0.297.88 984 2890 62.66 8.236 91.57 0. CSS is the cross subsidy surcharge for the relevant year Page 175 of 302 .2 The Commission has approved the wheeling loss of 1. 5.125.96 358.65 402.1.2.38 1.39 421.30 469.

13 FY 2014-15 4.03 “L” referred to the System Losses for the applicable voltage level. “C” considered for the different years of the MYT Petition is given in the table below: Table 129: Marginal Power Purchase Cost per unit for CSS calculations as submitted by RInfra-D (Rs. “T” was the proposed Tariff for the respective years from the period FY 2012-13 to FY 2015-16.99 FY 2013-14 5. The system losses were considered in the Cross Subsidy Surcharge formula were the same as considered in the determination of Energy Balance in MYT Petition as given in table below: Page 176 of 302 .Case No. expressed as a percentage.88 FY 2015-16 5. /kWh) Particulars Marginal Power Purchase Cost per unit FY 2012-13 4.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period T is the Tariff payable by the relevant category of consumers for the relevant year. C is the Weighted average cost of power purchase of top 5% at the margin excluding liquid fuel based generation and renewable power for the relevant year D is the Wheeling charge applicable for the relevant year L is the system Losses for the applicable voltage level. Further. expressed as a percentage.

1. the Cross Subsidy Surcharge per unit (Rs. while from FY 2013-14.88 FY 2013-14 0.00% FY 2015-16 4.69 Page 177 of 302 .24 3. the proposed wheeling charges were considered as given in the table below: Table 131: Wheeling Charges for CSS calculations as submitted by RInfra-D Particulars Wheeling Charges per unit – HT Wheeling Charges per unit – LT FY 2012-13 0.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Table 130: System Losses for CSS calculations as submitted by RInfra-D Particulars Transmission Losses Distribution Losses : HT network Distribution Losses : LT network FY 2012-13 4.00 1.00% D” referred to the Wheeling Charges for usage of RInfra-D network.04 1.94% 9. it was retained at the present level.Case No.94% 9.94% 9.85% 1.54 5. /kWh) for the Second Control Period as submitted by RInfra-D Particulars LT LT I .97 FY 2015-16 1.00% FY 2013-14 4.99 5.83 1. 2011.00% FY 2014-15 4. 43 of 2010 dated 9 September. the Cross Subsidy Surcharge recovery per unit (Rs. based on the Order in Case No. / kWh) proposed for each year to be recovered from the Changeover Consumers as given in the table below: Table 132: CSS (Rs. / kWh) were retained as applicable at present. From FY 2013-14 to FY 2015-16.Below Poverty Line LT -I Residential (Single Phase) 0-100 101-300 301-500 501 and above LT -I Residential Three phase Existing FY 2012-13 0.23 FY 2014-15 2.85% 1.2 RInfra-D submitted that for FY 2012-13.58 FY 2014-15 1.85% 1.03 FY 2013-14 3. For FY 2012-13.94% 9.2.46 0.89 FY 2015-16 1.96 3.85% 1.

55 0.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Existing FY 2012-13 0.61 12.2.96 1.20 9.51 0.0-20 kW LT II (b) .2.17 9.44 5.53 5.30 1.92 - 5.43 - FY 2014-15 2.>20 to 50 kW LT II (c) . tariff should progressively reflect the cost of supply and reduce cross subsidies in the manner specified by the Commission.04 1.22 - Particulars 0-100 101-300 301-500 501 and above LT II (a) .35 5.52 5.91 0. 5.97 2.LT Industrial upto 20 kW LT IV .95 3.Temporary Supply HT – Railway FY 2013-14 3.23 3.85 0.74 1.90 8.2.39 6.76 1.30 2.2 Commission’s Rulings 5.88 - FY 2015-16 1.07 2.54 11.2.26 2.80 13.above 50 kW LT III .83 0.15 0.77 0. second proviso to Section 42 (2) stipulates as under: “Provided further that such surcharge shall be utilised to meet the requirements of current level of cross subsidy within area of supply of the distribution licensee” Emphasis added Page 178 of 302 .2.Advertisements and Hoardings LT VI: LT -Street Lights LT-VII (A): LT -Temporary Supply Religious LT-VII (B): LT -Temporary Supply Others LT VIII: LT .Case No.00 2.96 2.17 2.32 5.2 Also.86 0.LT Industrial above 20 kW LT-V : LT.84 1.09 1.47 1.51 4.10 0.1 As per Section 61 of the Act.45 2.74 3.44 2.Crematorium & Burial Grounds LT IX: LT -Agriculture HT HT I: HT-Industry HTII : HT.88 1.90 12.Commercial HT III: HT-Group Housing Society HTIV : HT .97 2.

9 The Commission opines that the CSS computation needs to be undertaken only as per the approved values of various components of CSS formulae. 5.2. for respective years of the second Control Period.2.2.2.2. The Commission has computed the CSS as per formulae provided in the Tariff Policy. the Commission is of the view the CSS needs to reflect the current level of cost and tariff and formulae to be adopted should be the formulae as provided in the Tariff Philosophy.6 In light of the above stated Regulation.2.4 Further.2. on the proposal of RInfra-D to increase the CSS.2.2. 5.8 The Commission observed that there is a variance in formulae is in respect of grossing up of the component “C”.3 It is clear from the above extracts the CSS needs to be determined for meeting “current” level of cross subsidy of a distribution licensee. wherein. 5.2. Regulation 13. which are as under: Computation of ‘C’ 5. 5. Since.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 5.2.2. 5.10 Computation of ‘C’ for RInfra-D for the period from FY 2013-14 to FY 2015-16 is based on the power purchase quantum and power purchase rate approved in this Order for purchase from different sources. of the Distribution Licensee.2. there is change in marginal cost of power and the Average Billing Rate of RInfra-D. the same needs to be considered for the CSS computation. based on the approved current level of cross subsidy. stipulate the cross subsidy surcharge for each approved Tariff category and/or subcategory and/or Tariff slab. 2005 is reproduced below:“13.2.7 With regards to the objections raised by consumers and other stakeholders in the Public consultation process.8 of MERC (Distribution Open Access) Regulations.5 Hence.8 The Commission shall. the above mentioned extracts also emphasise on the current level of cross subsidy as a basis of determination of CSS. the Commission has proceeded with the computation of CSS for RInfra-D based on the approved cost and tariffs determined in this Order.Case No.2.” Emphasis added 5. as elaborated in Section 3 of this Order and is given in the table below:- Page 179 of 302 .2. RInfra-D has adopted C /(1-L/100) instead of C *(1+L/100) specified in the formulae of CSS in Tariff Policy.

75 FY 2015-16 3.94% 9.2.75 Average Billing Rate (ABR) 5. as elaborated in Section 3 of this Order.00% FY 2015-16 4.2.11 The category-wise ABR for the period from FY 2013-14 to FY 2015-16 have been considered as approved by the Commission for the retail consumers of RInfra-D and as elaborated later in this section.2.94% 9. System Loss ‘L’ 5.85% 1. 5.13 The computation of System Loss ‘L’ for the period from FY 2013-14 to FY 2015-16 is given in the Table below: Table 134: System Losses for CSS calculations approved by the Commission (%) Particulars Intra-State Transmission Losses Distribution Losses : HT network Distribution Losses : LT network FY 2013-14 4.85% 1.85% 1.13 FY 2014-15 3.2.00% Wheeling Charges ‘D’ Page 180 of 302 .00% FY 2014-15 4.12 The system loss for RInfra-D comprises the Wheeling Loss and Transmission Loss approved by the Commission while approving the Energy Balance for RInfra-D for the period from FY 2013-14 to FY 2015-16.2.2.94% 9.Case No.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Table 133: Marginal Cost of Power Purchase by RInfra-D approved by the Commission (Rs/kWh) Particulars Marginal Power Purchase Cost per unit FY 2013-14 5.

13 2. based on the Order in Case No.23 1.Below Poverty Line LT -I Residential 0-100 101-300 301-500 501 and above LT II (a) . For FY 201213. it is retained at the present level.23 - .2.13 5.27 Approved Category wise Cross Subsidy Surcharge (CSS) 5.86 5.65 1.>20 to 50 kW LT II (c) .86 5.97 5.15 For FY 2012-13.46 3.22 1.54 10.0-20 kW LT II (b) .22 1.13 5. / kWh) were calculated as per applicable rates in FY 2012-13. 2011. the Cross Subsidy Surcharge per unit (Rs.82 8.Case No.64 1.76 1.13 5.13 5.23 1.13 5.86 5.86 1.86 5.89 1. the Cross Subsidy Surcharge recoveries per unit (Rs.63 1. while from FY 2013-14 to FY 2015-16.14 “D” referred to the Wheeling Charges for usage of RInfra-D network.84 8.30 3. / kWh) approved for each year to be recovered from the Changeover Consumers as given in the table below: Table 136: Approved CSS for FY 2013-14(Rs/kWh) T Particulars Rs/kWh Rs/kWh Rs/kWh Rs/kWh Rs/kWh C C*(1+L%) W CSS LT Category LT I .22 1.16 5.2.86 5.39 10.above 50 kW Page 181 of 302 3.24 FY 2015-16 0.2.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 5.86 5. 43 of 2010 dated 9 September.2. From FY 2013-14 to FY 2015-16.65 6. the proposed wheeling charges were considered as given in the table below: Table 135: Wheeling Charges for CSS calculations as approved by the Commission (Rs/kWh) Particulars Wheeling Charges per unit – HT Wheeling Charges per unit – LT FY 2013-14 0.23 FY 2014-15 0.22 1.13 5.

22 1.LT Industrial upto 20 kW LT IV .09 5.86 5.29 1.22 1.66 9.86 5.48 5.23 CSS Rs/kWh 4.29 1.86 5.13 5.13 5.86 5.49 17.13 5.22 1.22 1.86 5.13 5.Below Poverty Line LT -I Residential 0-100 101-300 Page 182 of 302 3.10 4.22 1.35 LT III .48 5.01 - HT Category HT I: HT-Industry HTII : HT.45 12.41 10.Railway (New Category) 8.69 0.24 C Rs/kWh C*(1+L%) Rs/kWh W Rs/kWh CSS Rs/kWh .26 3.86 5.13 5.23 1.46 18.13 5.48 5.22 1.63 0.86 C Rs/kWh 5.75 9.13 5.22 8.86 5.54 3.86 W Rs/kWh 1.24 2.13 5.48 0.14 1.48 5.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period T Particulars Rs/kWh 11.63 0.33 8.25 1.64 9.Crematorium & Burial Grounds LT IX: LT -Agriculture 8.63 0.Temporary Supply HT .55 2.75 4.13 5.33 6.13 5.63 0.13 C*(1+L%) Rs/kWh 5.80 6.64 1.75 4.Commercial HT III: HT-Group Housing Society HTIV : HT .22 1.X public services shall be equivalent to CSS determined for LT-II-A Non-domestic or Commercial (0-20 kW) b) CSS for HT-VI public services shall be equivalent to CSS determined for HT-V Railways (0-20 kW) Table 137: Approved CSS for FY 2014-15(Rs/kWh) Particulars T Rs/kWh LT Category LT I .86 5.Advertisements and Hoardings LT VI: LT -Street Lights LT-VII (A): LT -Temporary Supply Religious LT-VII (B): LT -Temporary Supply Others LT VIII: LT .13 5.38 11.27 1.13 5.55 3.63 2.98 Note: a) CSS for LT.Case No.13 5.64 2.LT Industrial above 20 kW LT-V : LT.

69 6.62 C Rs/kWh 3.01 4.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Particulars T Rs/kWh 5.above 50 kW LT III .24 1.93 7.29 4.34 1.29 4.75 3.64 2.75 3.45 9.24 1.X public services shall be equivalent to CSS determined for LT-II-A Non-domestic or Commercial (0-20 kW) b) CSS for HT-VI public services shall be equivalent to CSS determined for HT-V Railways (0-20 kW) Table 138: Approved CSS for FY 2015-16 (Rs/kWh) Particulars T C C*(1+L%) W CSS Page 183 of 302 .64 0.84 3.29 4.75 3.29 4.24 1.40 2.87 7.64 0.34 11.75 C*(1+L%) Rs/kWh 4.Railway (New Category) Note: a) CSS for LT.60 7.75 3.49 4.24 1.92 4.64 0.24 1.54 1.75 3.05 1.24 1.Temporary Supply HT .01 4.75 3.LT Industrial above 20 kW LT-V : LT.64 0.66 11.29 4.04 1.24 1.24 CSS Rs/kWh 0.75 3.94 16.56 - 301-500 501 and above LT II (a) .19 HTIV : HT .01 4.75 3.75 3.Commercial HT III: Society HT-Group Housing 7.01 4.13 7.00 7.>20 to 50 kW LT II (c) .29 4.24 1.09 5.60 2.29 W Rs/kWh 1.24 1.07 7.75 3.75 3.02 3.29 4.29 4.Advertisements and Hoardings LT VI: LT -Street Lights LT-VII (A): LT -Temporary Supply Religious LT-VII (B): LT -Temporary Supply Others LT VIII: LT .19 16.18 2.35 3.24 1.29 4.41 10.85 HT Category HT I: HT-Industry HTII : HT.Crematorium & Burial Grounds LT IX: LT -Agriculture 6.24 1.29 4.75 3.0-20 kW LT II (b) .75 3.75 3.71 7.09 0.29 4.75 3.LT Industrial upto 20 kW LT IV .15 8.55 9.75 3.75 3.75 4.68 6.07 2.Case No.24 1.24 1.29 4.29 4.01 0.

29 5.53 0.64 5.20-50 kW LT II (c) .75 3.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Rs/kWh Rs/kWh Rs/kWh Rs/kWh Rs/kWh LT Category LT I .65 0.75 4.29 1.08 0.Below Poverty Line LT -I Residential 0-100 101-300 301-500 501 and above LT II (a) .53 1.26 1.00 6.84 7.01 4.above 50 kW LT III .01 4.29 4.23 9.Commercial HT III: Society HT-Group Housing 6.LT Industrial above 20 kW LT-V : LT.Temporary Supply HT .01 4.X public services shall be equivalent to CSS determined for LT-II-A Non-domestic or Commercial (0-20 kW) Page 184 of 302 .75 3.17 14.55 3.75 3.29 4.Railway (New Category) Note: a) CSS for LT.65 0.19 7.75 4.63 1.75 3.27 1.83 6.27 0.27 1.75 4.56 4.27 1.75 3.20 1.36 2.27 1.27 1.01 0.51 0.01 0.89 6.65 2.29 4.75 2.27 1.75 3.39 14.29 4.65 0.75 3.57 6.83 8.18 2.65 1.27 1.Case No.29 4.92 8.0-20 kW LT II (b) .75 3.76 6.27 1.75 3.29 4.75 3.48 5.75 3.60 3.29 4.94 HTIV : HT .15 2.07 6.75 3.34 1.27 1.01 0.00 3.29 4.29 4.27 1.29 4.27 1.75 3.27 1.75 3.Crematorium & Burial Grounds LT IX: LT -Agriculture 3.29 4.75 3.37 3.29 4.09 5.Advertisements and Hoardings LT VI: LT -Street Lights LT-VII (A): LT -Temporary Supply Religious LT-VII (B): LT -Temporary Supply Others LT VIII: LT .75 3.29 4.LT Industrial upto 20 kW LT IV .27 1.27 1.61 9.27 - HT Category HT I: HT-Industry HTII : HT.29 4.29 4.09 6.75 3.

31 4633.66 234.1 Revenue Gap at existing tariff 5.67 4974. RInfra-D has considered revenue for the period April 2012 to September 2012 as per actuals and the revenue for the period October 2012 to March 2012 has been estimated based on the existing tariff applicable and revised FAC which is based on the FAC applicable for the month of October 2012. For FY 2012-13. The Commission has approved the provisional revenue of Rs 4441.2 Commission’s Rulings 5.12 5307.54 1190.6 Crore for FY 2012-13 and approved the revenue Gap at existing tariff as under: Page 185 of 302 .3.3.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period b) CSS for HT-VI public services shall be equivalent to CSS determined for HT-V Railways (0-20 kW) 5.67 98. as discussed in Section 3 of this Order. The following table provides the Revenue gap for FY 12-13 as submitted by RInfra-D: Table 139: Revenue Gap for FY 2012-13 as submitted by RInfra-D (Rs Crore) Particulars ARR Retail Business ARR Wires Business Total Less Income from Wheeling Charges Less Income from CSS ARR (net) Revenue from Sale of Power Revenue Gap/ (Surplus) FY 13 4117. RInfra-D has proposed that the revenue gap of FY 12-13 may be recovered from Tariff in the year FY 1314.2.1.3.3.1 The Commission has considered the computed the revised ARR of FY 2012-13.53 340.3 Revenue Gap and Revenue requirement from retail tariff 5.Case No.1 RInfra-D has not proposed any change in tariff for the period FY 12-13.79 5.

29 340.4 5.3 Revenue requirement to be recovered from Revised Tariffs 5.39 1436.12 212.56 115.68 5244. 5.1 RInfra-D has submitted that recovery of wheeling charges and cross subsidy surcharge from changeover consumers shall reduce the net revenue requirement to be recovered from the Retail Tariff.07 5584.42 5675.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Table 140: Revenue Gap for FY 2012-13 approved by the Commission (Rs Crore) Particulars ARR Retail Business ARR Wires Business Total Less Income from existing Wheeling Charges Less Income from existing CSS ARR (net) requirement Revenue from Sale of Power at existing tariff Revenue Gap/ (Surplus) FY 13 4099.93 5513.68 (72.67 FY 14 4287.79 5172.46 FY 16 4148.2 RInfra-D has considered the existing tariffs as at the end of FY 12-13 after merging the presently applicable FAC with the energy charges.94 468.3.67 98.85 81. The same tariff has been considered by RInfra-D to compute revenue from Existing tariff for FY 2013-14 to FY 2015-16.52) 7.3.67 Page 186 of 302 .5 5251.00) 7.84 FY 15 3936.6 256.71 1324.19 (287.79 7.3.6 455.46 5387.29 4974.31 4633.54 1190.3.1 1152.3.0 98.Case No.0 4441.19 1225.7 4897.84 5063.75 107.3 RInfra-D has estimated revenue from existing tariffs for the rest of the control period (from FY 13-14 to FY 15-16) which is as under: Table 141: Net Revenue Requirement for the second Control Period from RInfra-D Consumers as submitted by RInfra-D (Rs Crore) Particulars ARR Retail Business ARR Wires Business Total Less Income from Wheeling Charges Less Income from CSS ARR Revenue Gap of FY 2012-13 ARR (net) Revenue from Sale of Power Revenue Gap/ (Surplus) Average Cost of Supply (Rs/kWh) FY 13 4117.78) 7.3.83 5444.34 (380.12 5307.53 340. 5.3.14 5260.66 234.46 89.

0 4441.3.7 3793. has been considered.5 The Commission further observes that for CSS.68 5.5 4365. the Commission is of the view that for computing revenue for existing retail tariff. while calculating the Revenue at the existing tariff.3 For FY 2014-15 and FY 2015-16.0 (1038.30) 5. the existing prevailing applicable rates at the end of FY 2012-13.59 FY 16 4074 1326 5400 459.4.6 The Commission has computed the revenue from approved revised CSS and wheeling charges as discussed earlier in this section to ascertain revenue requirement from retail tariff.0 4831.3. 5.4. 5.91 FY 14 4125 1164 5289 455.4 3990.3. CSS and wheeling charges of FY 2013-14 and FY 2014-15. wheeling charges and retail tariff are inter-related. 5.13 FY 15 3859 1240 5099 414.7 4897. Page 187 of 302 .0 98.3.1 113.2 The Commission is of the view that for computing revenue for existing retail tariff. shall be considered.4. 5.4 950.4. Also. CSS and wheeling charges.5 104. CSS and wheeling charges for FY 2013-14.4 7.3.39 8.1 The Commission noted that RInfra-D has computed the revenue from CSS and wheeling charges based on its revised proposal.4.3. which are approved later in this section. the revised tariffs.4 273.6 891.3.4 Commission’s Rulings 5.6 5357.4 Revenue Gap at existing tariffs for the rest of the Control Period approved by the Commission is as under: Table 142: Revenue Gap for the second Control Period at existing tariff approved by the Commission (Rs Crore) Particulars ARR Retail Business ARR Wires Business Total ARR Revenue Gap of FY 2012-13 Less Income from existing Wheeling Charges Less Income from existing CSS ARR (net) Revenue from Sale of Power at existing tariff Revenue Gap/ (Surplus) Average Cost of Supply (Rs/kWh) FY 13 4099 1152 5251 256.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 5.Case No.8 (375.01) 5.9 5253.6 455. revenue from revised CSS and wheeling charges would have to be factored in to ascertain revenue requirement from the retail tariff.4.

7 4897.4.0 4831.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 5.32 6.79 5.04% (570.85 7.9 519.8 4547.41 5.67) -11% FY 15 3859 1240 5099 421.1 RInfra-D has proposed the following principles while making the Tariff proposal for the second control period as under:  Rationalization of Fixed charges across consumer categories so that progressively a larger component of fixed cost is recovered through fixed charges Page 188 of 302 .Case No.5 (705.04) -13% FY 16 4074 1326 5400 469.04) (69.3. 5.67) -13% (570.9 3782.7 The Commission has further normalised adjustment of surplus in order to avoid tariff shock to the consumers and considered holding cost at interest rate of 14.04) (19.1.0 98.07 4191.04) 4663.6 455.8 Net revenue requirement and normalised recovery for the second Control period and normalised recovery approved by the Commission is as under Table 143: Net Revenue Requirement and normalised recovery for the second Control Period at existing tariff approved by the Commission (Rs Crore) Particulars ARR Retail Business ARR Wires Business Total Less Income from Revised Wheeling Charges Less Income from Revised CSS Regulatory asset recovery ARR (net) requirement from Retail Tariff Revenue from Sale of Power at existing tariff Revenue Gap/ (Surplus) Average Tariff Increase /( Decrease) Average Tariff Increase /( Decrease) (equalised) Carrying cost Normalised Tariff Increase /( Decrease) Normalised Tariff Increase (%) Adjusted Revenue Requirement from Retail Tariff Adjusted Average Cost of Supply (Rs/kWh) FY 13 4099 1152 5251 256.0 (1050.4 4365.9 5253.0 4411.4.0 4441.4.63) (589.28) -22% (570.8 45.17 3795.3.4 Tariff Philosophy 5.4 FY 14 4125 1164 5289 377.64) (639.57 1.9 818.5% similar to carrying cost allowed to RInfra-D for recovery of its Regulatory Asset.3 895.41) -13% (570.

D as provided in the ARR are fixed in nature except for the variable portion of power purchase cost.1. RInfra-D requested that since the recovery of fixed charges/ Demand charges does not vary with consumption. adequate recovery of fixed/Demand charges is important to any utility since they provide revenue stability.   Minimize the impact of tariff on the subsidized consumers in the Residential category Propose tariffs to categories which are presently not included in the tariff schedule. 2009 and there has been no revision in fixed charges since last the 4 years. 5. which are as under: Table 144: Fixed Charges as submitted by RInfra-D (Rs/ Consumer/ Month) Particulars LT LT I .Below Poverty Line LT -I Residential (Single Phase) 0-100 Existing Proposed 3 30 5 40 Page 189 of 302 . Fixed and Demand Charges 5.1.3 Based on above principle. Further.4. but are likely to come up in MYT period A.  Achieve a near parity with the tariffs of cross-subsidising consumer categories with the competing distribution licensee so as to prevent loss of cross-subsidy and protect interest of low end consumers. Staggered change in Tariffs across consumer categories to provide tariff relief to consumers whose tariffs are presently much higher than cost of supply and are thus cross subsidising other consumer categories to a large extent.4.9 of 2013   MERC Order for RInfra-D for MYT for Second Control Period To reduce the cross-subsidy between the consumer categories and rationalising tariffs in a manner reflecting cost to serve the consumer category.Case No. RInfra-D has proposed an increase in fixed charges and demand charges.2 RInfra-D submitted that the Tariff currently applicable for RInfra-D consumers was is as per Order 121 of 2008 dated 15 June. RInfra-D submitted that majority of the costs of RInfra.

Railway (New Category) 200 - 280 - Table 145: Demand Charges as submitted by RInfra-D (Rs/ kVA/ Month) Particulars LT LT I .Below Poverty Line LT -I Residential (Single Phase) 0-100 101-300 301-500 501 and above Existing Proposed - - Page 190 of 302 .Temporary Supply HT .Crematorium & Burial Grounds LT IX: LT -Agriculture HT HT I: HT-Industry HTII : HT.Case No.above 50 kW LT III .Advertisements and Hoardings LT VI: LT -Street Lights LT-VII (A): LT -Temporary Supply Religious LT-VII (B): LT -Temporary Supply Others LT VIII: LT .Commercial HT III: HT-Group Housing Society HTIV : HT .9 of 2013 Particulars 101-300 301-500 501 and above LT -I Residential Three phase 0-100 101-300 301-500 501and above LT II (a) .LT Industrial upto 20 kW LT IV .0-20 kW MERC Order for RInfra-D for MYT for Second Control Period Existing 50 50 100 100 100 100 100 200 200 200 200 200 200 Proposed 75 75 150 150 150 150 150 205 205 205 205 205 205 - LT II (b) .>20-50 kW LT II (c) .LT Industrial above 20 kW LT-V : LT.

Railway (New Category) Existing 150 150 150 150 15 Proposed 210 210 205 205 15 150 150 150 150 210 210 210 210 B.Advertisements and Hoardings LT VI: LT -Street Lights LT-VII (A): LT -Temporary Supply Religious LT-VII (B): LT -Temporary Supply Others LT VIII: LT . Billing demand 5.above 50 kW LT III .9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Particulars LT -I Residential Three phase 0-100 101-300 301-500 501 and above LT II (a) .Crematorium & Burial Grounds LT IX: LT -Agriculture HT HT I: HT-Industry HTII : HT.LT Industrial upto 20 kW LT IV .4.Commercial HT III: HT-Group Housing Society HTIV : HT .4 RInfra-D proposed that billing demand definition for the LT consumer categories should be similar to the billing demand definition for HT categories and proposed that the following change in billing demand definition: “Billing Demand (for LT categories): Monthly Billing Demand will be the higher of the following: a) Actual Maximum Demand recorded in the month during 0600 hours to 2200 hours Page 191 of 302 .LT Industrial above 20 kW LT-V : LT.>20-50 kW LT II (c) .1.Case No.Temporary Supply HT .0-20 kW LT II (b) .

1.4.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period b) 75% of the highest billing demand recorded during preceding eleven months subject to limit of contract demand.” 5.6 The rationale behind stipulating the Billing Demand as 65% of the actual Maximum Demand or 40% of the Contract Demand was that consumers in this category are smaller consumers and would typically not be able to assess their Demand very accurately.4.1. and should not be subjected to very high demand charges because of their inability to assess their Contract Demand accurately. b) 40% of the Contract Demand.Case No. c) 50% of the Contract Demand” Commission’s Ruling 5. The Commission has consciously defined the Billing Demand for such consumers as under: “Billing Demand (for LT categories): Monthly Billing Demand will be the higher of the following: a) 65% of the actual Maximum Demand recorded in the month during 0600 hours to 2200 hours. then such consumer is required to pay Demand Charges equivalent to 65% of the Contract Demand.1.5 The Commission has analysed RInfra-D’s submissions in this context. Page 192 of 302 .7 Hence. 5. even if the consumer’s actual Maximum Demand is equal to 100% of the Contract Demand.4.

51% 236.60% 102.10% 12.84 7.97% 239.52% 99.36% 49.LT Industrial upto 20 kW LT IV .31% 93.91% 276.49% 62.25% 164.90% 102.65% 120.00% 142.12% 16.61% 173.88% 131.01% 262.09% 154.84% 162.67 13. Energy Charges MERC Order for RInfra-D for MYT for Second Control Period 5.90% 88.61% 152.61% 51.49% 140.50% 127.95% 100.0-20 kW LT II (b) .53% 118.91% 118.Case No.66% 52.23% 149.78% Page 193 of 302 .60% 233.25% 49.19% 12.76% 94.94% 151.46 7.95% 59.96% 162.01% 17.76% 108.89% 91.72% 58.95% 130.42% 143.62% 263.67% 159.87% 129.36% 17.07% 118.11% 99.52% 100.LT Industrial above 20 kW LT-V : LT.55% 138.20% 46.23% 112.1.78% 143.84% 13.46% 129.81% 127.61% 47.47% 130.21% 159.22% 51.80% 47.Below Poverty Line LT -I Residential (Single Phase) 0-100 101-300 301-500 501 and above LT -I Residential Three phase 0-100 101-300 301-500 501 and above LT II (a) .00% 89.65% 105.Advertisements and Hoardings LT VI: LT -Street Lights LT-VII (A): LT -Temporary Supply Religious LT-VII (B): LT -Temporary Supply Others LT VIII: LT .84 7.60% 261.18% 127.16% 120.44% 137.8 RInfra-D proposed following reduction in cross subsidy levels for tariff design: Particulars FY 12-13 FY 13-14 FY 14-15 FY 15-16 ACoS LT LT I .42% 62.85% 130.28% 13.35% 127.38% 231.above 50 kW LT III .06% 113.82% 109.33% 164.22% 131.Crematorium & Burial Grounds LT IX: LT -Agriculture HT HT I: HT-Industry 7.21% 94.18% 140.10% 146.89% 100.20-50 kW LT II (c) .9 of 2013 C.98% 127.4.83% 131.27% 133.

25 11.57 10.81% 82.83 12.25 11.81% 87.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Particulars HTII : HT.35% FY 15-16 108.00% 75.50 6.51 12.57 9.83 12.50 6.47 0.74 6.46% 75.50 6.50 6.63% FY 14-15 111.Below Poverty Line LT -I Residential (Single Phase) 0-100 101-300 301-500 501 and above LT -I Residential Three phase 0-100 101-300 301-500 501and above LT II (a) .57 10.13 12.77 9.54 9.LT Industrial upto 20 12.1.57 9.47 0.57 10.01 8.91% 0.>20-50 kW LT II (c) .54 3.25 11.50 6.25 11.23 9.57 10.51 12.0-20 kW FY 12-13 Existing FY 13-14 Proposed FY 14-15 Proposed FY 15-16 Proposed 0.09 LT II (b) .95% 5.Railway (New Category) FY 12-13 134.50 6.40 3.above 50 kW LT III .83 9.55% 161.Commercial HT III: HT-Group Housing Society HTIV : HT .00% FY 13-14 117.78% 85.92 11.28 9.10% 90.01 3.74 6.89 10.28 9.Temporary Supply HT .41% 165.94% 162.4.30 3.Case No.83 9.01 9.47 0.60% 71.01 3.60 9.9 RInfra-D proposed following energy charges to be recovered from retail consumers: Particulars LT LT I .23 3.81 3.77 Page 194 of 302 .63% 162.55 3.

10 12.10 The Time of Day (ToD) tariffs are currently applicable compulsorily to HT I and HT II categories.. who have TOD meters.Railway (New Category) FY 12-13 Existing 9. (b) 0600 to 0900 hours.61 6.59 0.77 1.97 FY 14-15 Proposed 8.75 5 7.25 D. viz.50 12.Advertisements and Hoardings LT VI: LT -Street Lights LT-VII (A): LT -Temporary Supply Religious LT-VII (B): LT -Temporary Supply Others LT VIII: LT .01 8.06 7.00 5. and (e) 1800 to 2200 hours.1.49 4. (c) 0900 to 1200 hours.72 19.94 6.17 8.45 6.49 18.4.00 7.59 8.87 9.97 FY 15-16 Proposed 8.Commercial HT III: HT-Group Housing Society HTIV : HT .26 5.LT Industrial above 20 kW LT-V : LT. as well as optionally available to LT – II (A) and LT III category consumers.29 9.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Particulars kW LT IV .Crematorium & Burial Grounds LT IX: LT -Agriculture Total LT HT HT I: HT-Industry HTII : HT.09 7.10 13.67 4.50 18.58 19.61 6.99 8.82 4.69 4.Temporary Supply HT . (a) 2200 to 0600 hours.35 5.83 9.00 7.59 0.93 9. Page 195 of 302 . 5. (d) 1200 to 1800 hours. Time of Day Tariffs 5.00 17.72 18. LT II (B) and (C) and LT IV category consumers having TOD meters.50 0.11 5 7.76 20.53 5.25 12.31 4.1.01 5.Case No.4.95 FY 13-14 Proposed 8.25 17.09 7.78 9.11 The TOD tariffs are available for five time slots.

Clarification on Distribution Franchising 5.4. Mono Rail and some of which are under construction in RInfraD Distribution area and are being provided supply at Temporary Tariff as applicable for construction.13 In its Tariff proposal.”( Emphasis added).1. 5.4.50 per kWh. E.14 RInfra-D had submitted that there are a number of projects being envisaged for Public Transportation. RInfra-D has proposed an increase the TOD rebate applicable for all consumer categories for consumption during the off peak hours (2200 – 0600 hrs) to Rs 2.12 RInfra-D has proposed increase in the rebate applicable during off peak consumption (during 2200 Hrs to 0600 Hrs) to encourage shifting of load from peak to off peak hours.15 RInfra-D submitted that in Tariff Order dated June 15. Demand Charges (Rs /kVA/month) Energy Charges (Rs per kWh) 210 5. Creation of new category for Railways 5.4.Case No.1.4. 2009.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 5.1. Page 196 of 302 . in furtherance of the existing suburban Rail transport system such as Metro Rail. These downstream entities will pay appropriate tariff as applicable as per RInfra Tariff Schedule i.00 F. LT II. in case 121 of 2008. RInfra-D in its MYT Petition for FY 12-13 to FY 15-16 has proposed creation of new category “Railways” and proposes following tariff to be charged to this category Particulars HT Railways: Applicable to electricity supply at 100 kV/33 kV/ 22 kV/11 kV/6. the Commission has specified as under – “The Consumers belonging to HT II requiring a single point supply for the purpose of downstream consumption by separately identifiable entities will have to either operate through a franchisee route or such entities will have to take individual connections under relevant category.1.e.6 kV to Railways including Metro and Monorail.

the Commission cannot determine BST for all the possible combinations of consumer mix. 5. it is clarified that in respect of Distribution Franchisees. on a case by case basis.19 Hence.17 RInfra-D has requested the Commission to clarify on the principles to be adopted for deciding bulk supply tariff (BST) for the franchise where the mix load exists. it is clear that if a few consumers falling under HT II category collectively avail franchise route and become downstream consumers of a single point franchisee.16 RInfra-D further submitted that from the above Order.1.1.4. and also. the responsibility of ensuring conformance with Standards of Performance.4.1. It may be noted that in either case.18 The Commission is of the opinion that BST for supply to the Distribution Franchisee at single point for distribution to mixed loads within the franchised area will have to reflect its own consumption mix. the retail consumers cannot be charged a tariff higher or lower than that approved by the Commission for the same category of consumers for that licensee.Case No.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 5. Also. the licensees are free to prepare separate terms and conditions for each Franchisee Agreement. Page 197 of 302 .4. safety and all other relevant Regulations rests with the respective Licensees.1. 5. then the tariff applicable for such consumers will be LT II.4. 5.

7 4897.0 4411.1 In this Order. the Commission has decreased the tariffs in general in order to match the approved revenue requirement.04% (570. over the levels approved by the Commission in the previous Tariff Order.04) (19.5 Commission’s Tariff Philosophy 5. as detailed earlier in this.1. while at the same time. It may be noted that the tariffs are being revised after more than four years.9 519.32 6.0 4441. which has resulted in accumulated regulatory asset.3 895.1 Tariff Design 5.0 98.Case No.1.04) (69.8 45.64) (639. which have to be amortised along with associated carrying cost over the MYT Control Period.5.41 Page 198 of 302 .9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 5.9 3782.5 (705.07 4191.28) -22% (570.8 4547.9 818.2 Normalised recovery of Revenue Requirement as approved earlier in this section is as under: Table 146: Net Revenue Requirement and normalised recovery for the second Control Period at existing tariff approved by the Commission excluding Regulatory Asset Recovery (Rs Crore) Particulars ARR Retail Business ARR Wires Business Total Less Income from Revised Wheeling Charges Less Income from Revised CSS Regulatory asset recovery ARR (net) requirement from Retail Tariff Revenue from Sale of Power at existing tariff Revenue Gap/ (Surplus) Average Tariff Increase /( Decrease) Average Tariff Increase /( Decrease) (equalised) Carrying cost Normalised Tariff Increase /( Decrease) Normalised Tariff Increase (%) Adjusted Revenue Requirement from Retail Tariff Adjusted Average Cost of Supply (Rs/kWh) FY 13 4099 1152 5251 256.17 3795.79 5.4 4365.5.85 7.0 4831.6 455.63) (589. as discussed in Section 4 of this Order.04) (570. 5.0 (1050. reducing the cross-subsidy prevailing between consumer categories.41) -13% (570.67) -11% FY 15 3859 1240 5099 421.9 5253.5.57 1.4 FY 14 4125 1164 5289 377.67) -13% FY 16 4074 1326 5400 469.04) -13% 4663.

the Commission has adjusted the revenue requirement of each year.98 FY 15 4191.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 5. the Commission has determined the category-wise tariffs in line with the tariff philosophy adopted by it in the past.1.5. it should be included to enable consumers to understand the billing impact of revised tariffs. the Commission is of the opinion though RAC would be charged as separate charge and its accounting would also be separately for the reasons elaborated in Section 4 of this Order.79 578.375. 5.20 4. Normalised recovery of Revenue Requirement after including RAC as approved earlier in this section is as under: Table 147: Net Revenue Requirement and normalised recovery for the second Control Period at existing tariff approved by the Commission including Regulatory Asset Recovery (Rs Crore) Particulars Adjusted Revenue Requirement from Retail Tariff Regulatory Asset recovery through RAC from Retail Consumers of RInfra-D Total Revenue Requirement from Retail Tariff including Regulatory Asset recovery FY 14 4663. The Commission has normalised the tariff decrease to avoid tariff shock in FY 2015-16 after substantial decrease in ARR for FY 2014-15.33 5.1. The tariffs and tariff categorisation have been determined so that the cross-subsidies are reduced gradually without subjecting any consumer category to a tariff shock. However.262.47 Page 199 of 302 .5 The Commission observed that RInfra-D represented RAC as a separate line item as not included it retail tariff comparison. 5.4 With the above determined average tariff increase/decrease.32 588. it would be better to have a smooth tariff trajectory. under a MYT regime. and the provisions of law.85 601.84 4.5.3 As observed from the above Table. The Commission has also allowed commensurate carrying cost.5. but for the estimation of landed cost of the consumers. in such a manner that the average tariff increase for all three years is similar. on the amount of revenue surplus deferred to future periods.1. Hence.780. if each of the years is considered on a standalone basis and tariffs revised in such a manner that the respective revenue requirement of each year is met. by deferring adjustment of surpluses in future periods. Further.20 FY 16 3795.Case No. the average normalised tariff decrease required varies from a 11% to 13%.

2 Ceiling Tariff 5. Provided that in case of distribution of electricity in the same area by two or more distribution licensees.2.45 (675.5.5.98 0.46 7. the Appropriate Commission may.18% FY 15 5.3 The Commission noted that the sales and revenue mix of RInfra-D is as under: FY 13.5.5.24) 7.2.Case No...52 9.Actual RInfra-D Commercial (HT+LT) 28% Sales (MU) Others 3% Domestic LT Industrial HT Industrial Agriculture 0% HT Industrial 1% LT Industrial 5% Domestic 63% Agriculture Commercial (HT+LT) Others Page 200 of 302 ..23 -12% Particulars Revenue from Existing Tariff including RAC Revenue Gap/ (Surplus) Adjusted Average Cost of Supply (Rs/kWh) Average Tariff Increase including RAC 5.23) 6.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period FY 14 5.04 -12% FY 16 4.2 Section 62 (1) of EA. (d) retail sale of electricity. for promoting competition among distribution licensees.253. 2003 states: “The Appropriate Commission shall determine the tariff in accordance with the provisions of this Act for – ..70 (605.1 Shri Shirish Deshpande of MGP during the Public Hearing has suggested that the Commission should determine the ceiling tariffs in RInfra’s area of supply 5.455.” 5.2. fix only maximum ceiling of tariff for retail sale of electricity.980.

5 The Commission noted that the sales and revenue mix of TPC-D is as under: FY 13. 5.Actual TPC-D Others 1% Commercial (HT+LT) 40% Sales (MU) Domestic 16% LT Industrial 10% Domestic LT Industrial HT Industrial Railways Commercial (HT+LT) Others Railways 13% HT Industrial 20% Page 201 of 302 . Also it also noted that industrial sales is around 6% of sales mix of RInfra-D contributing to 8% of revenue.5.2.2. whereas sales to commercial consumers is 28% of sales mix contributing around 39% of revenue of RInfra-D.Actual RInfra-D Others 5% Revenue (Rs Cr) Domestic 48% Domestic LT Industrial HT Industrial Agriculture Commercial (HT+LT) Commercial (HT+LT) 39% Others Agriculture 0% HT Industrial 2% LT Industrial 6% 5.4 It is clear from the above charts that the sales to domestic category of RInfra-D contributes 63% of sales and 48 % of revenue of RInfra-D.Case No.5.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period FY 13.

Page 202 of 302 . Also it also noted that industrial sales including railways is around 43% of sales mix of TPC-D contributing to 45 % of revenue. 5. Hence.5. 5.5. it will not be appropriate to consider implementation of ceiling tariff.2.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period FY 13.6 It is clear from the above charts that the sales to domestic category of TPC-D contributes 16% of sales and 11 % of revenue of TPC-D. the Commission has not considered this suggestion for tariff design in this Tariff Order.8 The Commission further notes that are several operational and legal issues that need to be debated before implementation of the ceiling tariff and without consideration of the same.5.Case No.7 The Commission notes that sales and revenue mix of RInfra-D and TPC-D is distinct and heterogeneous in nature and fixing ceiling tariff would require homogeneous sales and revenue mix of the Licensees for whom ceiling needs to fixed.2. whereas sales to commercial consumers is 40 % of sales mix contributing around 43% of revenue of RInfra-D.Actual TPC-D Others 1% Domestic 11% Revenue (Rs Cr) Domestic LT Industrial 10% LT Industrial HT Industrial Railways Commercial (HT+LT) Others Commercial (HT+LT) 43% Railways 14% HT Industrial 21% 5.2.

2 In compliance with the Judgment of the Hon’ble Appellate Tribunal. with the definition of HT Public Services being modified vide the Supplemental Order dated 22 May. Post Offices.3 Rationalisation of Tariff Categories/Consumption Slabs 5. created the categories of LT Public Services and HT Public Services. the Commission has created a new Tariff Category for ‘Public Services’ in HT and LT segments.3. hospitals. Defence establishments (army. in case of MSEDCL. 2013.5. Public libraries and Reading rooms.e. The rationale for creation of these categories. Fire Service Stations. Jails. to a large extent. Railway except traction (shops on the platforms/railway station/bus stands will be billed under Commercial category as per the respective slab).3 The Commission has adopted the same philosophy. Police Stations. The Commission has included Airports as well as other similar infrastructure services under the Public Services category.5. 5. the Commission. navy and air force). Prisons. Courts.Case No. Sports Club / Health Club / Gymnasium / Swimming Pool attached to the Educational Institution / Hospital provided said Sports Club / Health Club / Gymnasium / Swimming Pool is situated in the same premises and is exclusively meant for the students / patients of such Educational Institutions and Hospitals. and the applicability of this category is defined below: LT IX . primary health care centres.5. Spiritual Organisations which are service oriented.Public Services Applicability . Airports. 19 of 2012 on MSEDCL’s Petition seeking tariff determination for FY 2012-13. dispensaries. 2012 in Case No.3.. State transport establishments. 5. pathology laboratories. the Commission has already rationalised the consumer categories and consumption slabs across different Distribution Licensees in the State of Maharashtra. vide its Order dated 16 August. In this MYT Order.This Tariff shall be applicable to educational institutions.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 5.5.3. i. while creating the categories of LT Public Services and HT Public Services. Railway and State Transport Workshops.1 In the previous Tariff Orders. and the basis for determining the tariff for these newly created categories are explained below. Page 203 of 302 . HT VI Public Services and LT X – Public Services.

Hence. Jails. which is annexed as a part of this Order (Annexure II). Page 204 of 302 .5. Airports. the Commission has accepted creation of new category as proposed by RInfra-D.7 The applicability of tariffs for different consumer categories has been stipulated in the approved Tariff Schedule. such that the tariffs are in-between the tariffs applicable for industrial category and commercial category. 5.5.3. Sports Club / Health Club / Gymnasium / Swimming Pool attached to the Educational Institution / Hospital provided said Sports Club / Health Club / Gymnasium / Swimming Pool is situated in the same premises and is exclusively meant for the students / patients of such Educational Institutions and Hospitals. Spiritual Organisations which are service oriented. Police Stations.3.Public Services Applicability . pathology laboratories. primary health care centres. Railway and State Transport Workshops. Defence establishments (army. 5. dispensaries. 5. hospitals.HT Railways category has been determined by giving due weightage to the tariffs determined for industrial and commercial category.This Tariff shall be applicable to educational institutions.6 As regards to proposed new category for Railways. Public libraries and Reading rooms.5.3.5. Fire Service Stations. 5.3. Post Offices. such that the tariffs are inbetween the tariffs applicable for industrial category and commercial category. RInfra-D submitted that at present no description of type of use is provided against consumer account numbers in the billing database and it is presently not possible to extract the type of consumers specified in public services category. navy and air force).4 In its reply to data gaps. Prisons. The tariff for the HT V.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period HT VI . Courts. State transport establishments.5 The tariff for the Public Service category has been determined by giving due weightage to the tariffs determined for industrial and commercial category. the Commission is not in a position to ascertain the impact of such categorisation owing to paucity of data and shall undertake true-up of impact of such categorisation at the time of truing up. subject to prudence check.Case No. Railway except traction (shops on the platforms/railway station/bus stands will be billed under Commercial category as per the respective slab).

for the relevant voltage level and upstream system. Interest on Loan.”(emphasis added) Page 205 of 302 . We.. “34. interest on working capital and O&M costs can be pooled and apportioned equitably. however. to all the voltage levels including the appellant’s category to determine the cost of supply. However. all the other costs such as Return on Equity. “37. the network costs can be split into the partial costs of the different voltage level and the cost of supply at a particular voltage level is the cost at that voltage level and upstream network. All consumer categories connected to the same voltage will have the same cost of supply. apportioning the power purchase cost at different voltage levels taking into account the distribution losses at the relevant voltage level and the upstream system will facilitate determination of voltage wise cost of supply. on pro-rata basis. but a simple and practical method to reflect the actual cost of supply..9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period “32.” . in the absence of segregated network costs. depreciation.. both commercial and technical.” . Further. As power purchase cost is a major component of the tariff.Case No. refinements in formulation for cost of supply can be done gradually when more data is available. Ideally. though not very accurate. it would be prudent to work out the voltage-wise cost of supply taking into account the distribution losses at different voltage levels as a first major step in the right direction. Thus Power Purchase Cost which is the major component of tariff can be segregated for different voltage levels taking into account the transmission and distribution losses. The cross subsidy will be calculated as the difference between the average tariff realization for that category as per the Annual Revenue Requirement and the cost of supply for the consumer category based on voltage-based cost of supply. Segregating Power Purchase cost taking into account voltage-wise transmission and distribution losses will be a major step in the right direction for determining the actual cost of supply to various consumer categories.. As segregated network costs are not available. direct the State Commission to determine the cross subsidy for each consumer category after working out the voltage-wise cost of supply based on the directions given in the preceding paragraphs.

can be apportioned to different voltage levels in proportion to the distribution losses at the respective voltage levels.8 As can be seen from the above extract of the Hon’ble Appellate Tribunal’s Judgment. the consumers have not had the opportunity to give their comments and suggestions on the proposal to determine tariffs and cross-subsidy on the basis of voltage-wise cost of supply.10 Also.5.11 In view of all the above reasons.5. and in the absence of requisite data. the Commission has continued to compute the cross-subsidy with respect to the Average Cost of Supply. and hence. The Commission further notes that such a tariff design on the basis on average voltage wise cost of supply would lead to tariff shock to certain categories of consumers. the Commission is of the view that it would not be appropriate to determine tariffs on the basis of voltage-wise cost of supply at this point in time. as laid down in the Tariff Policy as well as several Judgments of the Hon’ble Tribunal. 5. wheeling losses for HT and LT level are available but applying average power purchase cost to LT and HT level to determine cost results in average voltage wise supply. which are the major component of the Distribution Licensee’s costs.3. the Hon’ble Tribunal has ruled that the voltage-wise cost of supply should be used to determine the category-wise cross-subsidy.Case No. the Commission has attempted to ensure that the overall objective of reduction of cross-subsidies to be within the limits of +20% of the Average Cost of Supply. for the purpose of this Order.5.9 The Commission observed that in case of RInfra-D. However.3.5. Moreover. the Hon’ble Tribunal has further advised that the power purchase costs. 5. 5.3.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 5. Page 206 of 302 . RInfra-D has not submitted the details of Voltage-wise Cost of Supply in the MYT Petition that was published for public comments.3.

3.2 It should be noted that RInfra-D has already charged FAC for FY 2012-13 as well as the initial months of FY 2013-14. who have TOD meters.Case No. In case of any variation in the fuel prices and power purchase prices with respect to these levels. after approval by the Commission. LT IV category consumers having TOD meters.9 of the MERC MYT Regulations.5.5. 5.3.4 to 13.5.5. 5. 5. vis-a-vis the FAC already charged by RInfra-D for these periods.1 The existing Fuel Adjustment Cost (FAC) Charge has been equated to zero. and hence. The Commission observed that RInfra-D was not able to substantiate and establish that the proposed rebate will lead to demand side management. vis-a-vis the fuel costs considered in the prevailing Tariff Order and the Regulations considered for that Order (MERC Tariff Regulations.II (A) and LT III category consumers. on account of the adoption of the existing fuel costs and power purchase costs for projection of the power purchase expenses. 2011. positive or negative. the Commission has rejected the proposal of increase of ToD rebate. 2005). and HT VI categories. due to the change in applicability of Regulations considered for charging FAC and that considered for vetting. However. and LT X categories.4 Fuel Adjustment Charges 5. due to changes in the cost of power procured due to change in fuel cost. and LT II (B) and (C). the ARR for the Control Period from FY 2012-13 to FY 2015-16 has been determined in accordance with MERC MYT Regulations.12 With regards to proposal of RInfra-D to increase ToD rebate during night hours.4. Any difference. as well as optionally available to LT. HT II. Hence.5. through the Fuel Adjustment Cost (FAC) component of Z-factor Charge.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 5. Page 207 of 302 .13 The Time of Day (ToD) tariffs will be applicable compulsorily to HT I. RInfra-D has to resubmit post-facto vetting for this period would have to be done vis-a-vis the norms specified in the MERC MYT Regulations and the fuel costs considered in this Order for FY 2012-13 and thereafter.4. shall be passed through in the second half of FY 201415 and spread over the six months of H2 of FY 2014-15. RInfra-D shall pass on adjustments. as specified in Regulations 13.

Page 208 of 302 .4 Thereafter.3 RInfra-D shall submit the details in the stipulated format to the Commission for the first half of FY 2013-14. within 60 days of completion of such half.5.Case No.4. as stipulated by the Commission.4.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 5. for prior approval of Z-factor charge to be recovered in the ensuing half yearly periods of the second Control Period. within sixty (60) days of completion of first half. RInfra-D shall submit the Z-factor Charge levied to all consumers for the preceding half yearly period vis-a-vis the Z-factor component recoverable.5. along with the detailed computations and supporting documents as may be required for verification by the Commission. for prior approval of Z-factor charge to be recovered in the second Control Period. 5. RInfra-D shall submit details in the stipulated format to the Commission for the subsequent half yearly periods of the second Control Period. Further.

Temporary Supply HT .5.39 4.5.5.19 12.88 3.04 7.18 12.01 10% 10.13 19.81 13.Case No.54 0% 21.Crematorium & Burial Grounds LT IX: LT -Agriculture Total LT HT HT I: HT-Industry HTII : HT.87 11.Below Poverty Line LT -I Residential (Single Phase) 0-100 101-300 301-500 501 and above LT -I Residential Three phase 0-100 101-300 301-500 501 and above LT II (a) .46 8.68 5.66 7% 12.33 5% 19.50 6.73 6.93 8.28 14.98 % ABR Increase (Rs/kWh) 147% 2.1 The Comparison of category-wise Average Billing Rate including RAC and crosssubsidy reduction trajectory approved by the Commission for FY 2013-14 is given in the Tables below: Consumer Category Average Cost of Supply (Rs/kWh) Consumption Slabs Average Billing Rate at Existing Tariff (including FAC) Average Billing Rate (Rs/kWh) Tariff Proposed by RInfra-D (including RAC) ABR (Rs/kWh) 2.above 50 kW LT III .79 8.31 32% 4.83 -1% -2% 21% 6% -35% -6% 12% 9.79 4.13 13.14 13.43 10.5 Cross-Subsidy Reduction Trajectory 5.45 12% 9.29 21.36 6.59 11.57 9.83 4.97 3.41 31% 9.98 Page 209 of 302 .0-20 kW LT II (b) .71 9.10% 1% 5% 13% 12% -1% 4% 0.>20-50 kW LT II (c) .86 13.84 9.44 1% 12.14% 12% 46% 89% 140% 161% 47% 86% 140% 159% 126% 161% 170% 118% 116% 272% 130% 88% 235% 57% 12% 98% 118% 132% 81% 163% 130% 126% 100% 29% 52% 96% 121% 154% 52% 89% 119% 152% 118% 155% 161% 118% 120% 263% 130% 117% 244% 66% 26% 98% 120% 139% 91% 182% 129% 131% 100% 7.14 19% 7.73 2.40 21.Advertisements and Hoardings LT VI: LT -Street Lights LT-VII (A): LT -Temporary Supply Religious LT-VII (B): LT -Temporary Supply Others LT VIII: LT .76 11.93 ABR/ ACoS (%) Revised Tariff (including RAC) Existing Tariff Revised Tariff LT I .16 18% 7.47 7% 12.54 10.47 26% 5.11 12.68 8% 9.LT Industrial above 20 kW LT-V : LT.97 7.81 10% 9.03 13.99 18.09 12.37 10.15 10% 9.14 8% 9.54 11.Commercial HT III: HT-Group Housing Society HTIV : HT .43 13.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 5.43 7.64 10.48 12.36 9.Railway (New Category) Total HT Total 0.37 1% 12.72 10.10 13.55 0.65 7.95 7.12 11.00 10.69 10.98 % Increase 142% 13% 8% -14% -4% 12% 4% -15% -4% -6% -4% -6% 0% 3% -3% 0% 33% 4% 16% 122% -0.35 31% 4.10 14% 7.33 7.06 8.35 10.85 6.07 7.LT Industrial upto 20 kW LT IV .28 10.90 9.44 9.28 117% 2.38 10.

>20-50 kW LT II (c) .99 -28% 9.79 -5% 9.86 8.52 8.78 -16% 10.15 8.58 -9% 9.48 6% 2.0-20 kW LT II (b) .5.07 13% 5.29 2.74 -11% 8.49 0% 8.91 -10% 20.04 7.79 4% 8.03 2% 2.40 -17% 7.08 -2% 4.13 10.78 9.33 -8% 10.70 8% 5.75 15% 4.06 -2% 4.28 13.68 -35% 8.82 10% 5.42 0% 8.25 -12% 12.56 -5% 19.04 -12% 33% 59% 109% 137% 175% 59% 101% 134% 173% 134% 175% 182% 134% 135% 298% 148% 132% 277% 75% 28% 112% 139% 156% 103% 207% 146% 149% 114% 35% 58% 91% 99% 129% 58% 83% 97% 127% 122% 153% 160% 115% 116% 269% 125% 125% 264% 83% 30% 98% 116% 141% 103% 180% 127% 133% 100% Page 210 of 302 .10 -26% 12.19 -14% 9.89 18% 4.52 20.13 7% 1.39 8.Temporary Supply HT .2 The Comparison of category-wise Average Billing Rate and cross-subsidy reduction trajectory approved by the Commission for FY 2014-15 is given in the Tables below: Consumer Category Average Cost of Supply (Rs/kWh) Average Billing Rate at Existing Tariff (including FAC) Average Billing Rate (Rs/kWh) Tariff Proposed by RInfra-D (including RAC) ABR/ ACoS (%) Consumption Slabs Revised Tariff (including RAC) Existing Tariff Revised Tariff LT I .LT Industrial above 20 kW LT-V : LT.24 0% 7.13 8.11 -14% 9.46 10% 6.33 2% 8.44 9.5.56 12% 8.33 4.LT Industrial upto 20 kW LT IV .35 -11% 10.15 -17% 9.82 14% 6.47 5.04 ABR % ABR % Increase (Rs/kWh) Increase (Rs/kWh) 2.above 50 kW LT III .01 7.70 -13% 14.03 8.Railway (New Category) Total HT Total 7.96 -13% 10.88 -12.14 10.56 -8% 8.81 -28% 9.56 2% 9.84 12% 6.40 -15% 9.35 1% 2.98 10.74 -8% 11.76 9.Case No.28 18.65 12.18 -9% 12.67 10.85 -18% 7.49 8% 6.Commercial HT III: HT-Group Housing Society HTIV : HT .95 -26% 12.46 12.93 -10% 11.99 8.30 4.Below Poverty Line LT -I Residential (Single Phase) 0-100 101-300 301-500 501 and above LT -I Residential Three phase 0-100 101-300 301-500 501 and above LT II (a) .47 -5% 18.35 11.66 -2% 18.86 -16% 9.76 -13% 12.Crematorium & Burial Grounds LT IX: LT -Agriculture Total LT HT HT I: HT-Industry HTII : HT.62 5% 7.49% 7.Advertisements and Hoardings LT VI: LT -Street Lights LT-VII (A): LT -Temporary Supply Religious LT-VII (B): LT -Temporary Supply Others LT VIII: LT .28 8.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 5.54 6.42 11.52 6% 7.

03 -5% 2.56 -16% 8.89 -3% 9.5.37 -4% 2.05 -12.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 5.5.95 8.5.85 6.78 8.04 -13% 9.00 4.10 0.93 7.96 9.25 8.72 -1% 8.Below Poverty Line LT -I Residential (Single Phase) 0-100 101-300 301-500 501 and above LT -I Residential Three phase 0-100 101-300 301-500 501 and above LT II (a) .43 15% 7.24 12.01% 8.06 0% 8.04 6.79 26% 6.Case No.69 24% 6.78 54% 6.79 18.70 -15% 1.40 6.70 8.07 24% 4.56 -16% 10.79 1% 16.94 22% 4.77 58% 6.Commercial HT III: HT-Group Housing Society HTIV : HT .67 -22% 11.32 -6% 8.82 2.31 -17% 9. Page 211 of 302 .35 7.51 37% 7.52 -17% 6.10 -13% 21.Railway (New Category) Total HT ABR 2.94 -26% 11.69 36% 6.27 41% 5.85 -24% 7.97 10% 7.37 15% 7.04 0% 8.99 9.Crematorium & Burial Grounds LT IX: LT -Agriculture Total LT HT HT I: HT-Industry HTII : HT.56 5.78 -12% 7.03 -6% 10.Temporary Supply HT .48 4.11 8.99 25% 7.24 -6% 18.01 3% 2.0-20 kW LT II (b) .06 6.76 11.LT Industrial above 20 kW LT-V : LT.12 -19% 8.5.above 50 kW LT III .3 The Comparison of category-wise Average Billing Rate and cross-subsidy reduction trajectory approved by the Commission for FY 2015-16 is given in the Tables below: Consumer Category Average Cost of Supply (Rs/kWh) Average Billing Rate (Rs/kWh) Tariff Proposed by RInfra-D (including RAC) ABR/ ACoS (%) Consumption Slabs Average Billing Rate at Existing Tariff (including FAC) Revised Tariff (including RAC) Existing Tariff Revised Tariff LT I .67 4% 9.27 5% 7.81 8.34 9% 8.65 -5% 12.23 -11% 40% 65% 103% 112% 146% 66% 94% 109% 144% 138% 173% 181% 130% 131% 303% 141% 141% 298% 93% 34% 110% 131% 159% 116% 204% 144% 150% 113% 40% 65% 97% 107% 124% 65% 88% 104% 121% 107% 127% 149% 113% 114% 269% 114% 132% 264% 96% 38% 97% 127% 141% 116% 169% 121% 135% 100% 5.84 0% 6.08 5.LT Industrial upto 20 kW LT IV .46 -11% 5.>20-50 kW LT II (c) .88 8.84 -5% 8.15 9.58 10.48 0% 4.75 7% 7.21 -1% 13.38 5% 10.19 18.47 -5% 12.02 5.91 8.12 12% 16.4 The above Tables show that the Commission has reduced the cross-subsidy levels for most consumer categories.48 -6% 10.77 -11% 10.Advertisements and Hoardings LT VI: LT -Street Lights LT-VII (A): LT -Temporary Supply Religious LT-VII (B): LT -Temporary Supply Others LT VIII: LT .13 6.29 37% 7.68 26% 6.23 ABR % ABR % (Rs/kWh) Increase (Rs/kWh) Increase 2.40 -10% 8.23 6.

151 of 2011.5. 5. 5.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 5.78 0.48 Rs. wherein the clarifications given in this Order shall prevail.5.5. is under hearing with the Commission.5. 5.84 Page 212 of 302 .6 It should be noted that all previous clarifications given by the Commission through its various Orders continue to be applicable. The revenue shortfall/surplus if any will be trued up based on actuals. unless they are specifically contrary to anything that has been stated in this Order. it is possible that the actual revenue earned by RInfra-D may be higher or lower than that considered by the Commission. 2013 (for FY 2013-14) Consumer category & Consumption Slab Fixed/ Demand Charge Tariffs Wheeling Charges (Rs/kWh) Energy Charge (Rs/kWh) Regulatory Asset Charge (Rs/kWh) LOW TENSION CATEGORIES 1 LT I . The Commission is of the view that the Judgement/Ruling arrived at in Case No.5 While the tariffs have been determined such that the revenue gap allowed to be recovered through the revised tariffs is met entirely through the revision in tariffs. The effect of above mentioned impact on this MYT Order of RInfra-D and the MYT Order of TPC-D issued on 28 June.22 0.19 101-300 units 1.Case No. which is a review of the actions taken by TPC-D on Order of the Commission in Case No.Residential (BPL) LT I – Residential 0-100 units Rs. 75 per 1.22 2.22 4. 85 of 2013. REVISED TARIFFS WITH EFFECT FROM 1 September. 40 per month$$ Rs.6 Sl. 5 per month 1. 85 of 2013 will impact the sales and revenue of both RInfra-D and TPC-D. 179 of 2011 will be considered by the Commission and the appropriate consequent Orders will be issued.11 0. 2013 in Case No.5. both of whom have a Universal Service Obligation in the same area of Supply.5. on account of the changes in consumption pattern.7 The Case No.23 0.

19 Rs 200 per month Rs 200 per month Rs 200 per month 1. 250 per month 1.Public Services 1.47 Consumer category & Consumption Slab 301 to 500 units Above 500 units (balance units) month$$ Rs. floodlights & neon signs 6 LT VI – Streetlights 7 LT VII – Temporary Supply (A) TSR – Temporary Supply Religious (B) TSO – Temporary Supply Others 8 LT VIII – Crematoriums and Burial Grounds 9 LT IX – Agriculture 1.22 1.22 6.22 6.22 1.78 9.28 2 LT II .22 6.22 15.78 2.59 1. 200 per kVA per month Rs.78 15. incl.64 Rs 20 per HP per month Rs. 200 per kVA per month Rs.30 1.22 8. 250 per month Rs.84 2.22 1.08 5 LT V .78 9.22 4.38 0. 250 per month Rs.09 Page 213 of 302 .Case No.46 1.9 of 2013 Sl. MERC Order for RInfra-D for MYT for Second Control Period Tariffs Fixed/ Demand Charge Wheeling Charges (Rs/kWh) Energy Charge (Rs/kWh) Regulatory Asset Charge (Rs/kWh) 1.37 0.22 6.22 1.22 0.12 1.12 1.64 0. 400 per month Rs 200 per kVA per month# 1. 100 per month$$ 1.40 1.LT Industrial below 20 kW load 4 LT IV .Advertisement & Hoardings.53 1.28 1.LT Commercial (A) 0-20 kW Rs.38 1.78 3.78 1.05 (B) > 20 kW and < 50 kW (C) > 50 kW 3 LT III .LT Industrial above 20 kW 1.24 10 LT X.23 6.22 1.22 7.

84 0. and LT X category.78 14 HT V – Railways 15 HT VI – Public Services 0.9 of 2013 Sl.50 0.37 0.Case No.63 8.37 1.12 1.27 0. LT IV.19 TOD Tariffs (in addition to above base tariffs) for HT I.75 HIGH TENSION CATEGORIES 10 HT I – Industry 11 HT II – Commercial 12 HT III – Group Housing Society 13 HT IV – Temporary Supply Rs 200 per kVA per month Rs 200 per kVA per month Rs 200 per kVA per month Rs 200 per connection per month Rs 200 per kVA per month Rs 200 per kVA per month 0.42 1.19 0.63 7.63 12.63 7.00 1.00 -0.00 0.87 1.12 0.63 5. HT II and HT VI Page 214 of 302 .87 1.63 7. and optional for LT II (A) and LT III category 0600 hours to 0900 hours 0900 hours to 1200 hours 1200 hours to 1800 hours 1800 hours to 2200 hours 2200 hours to 0600 hours 0. MERC Order for RInfra-D for MYT for Second Control Period Tariffs Fixed/ Demand Charge Wheeling Charges (Rs/kWh) Energy Charge (Rs/kWh) Regulatory Asset Charge (Rs/kWh) Consumer category & Consumption Slab TOD Tariffs (in addition to above base tariffs) – compulsory for LT II (B) and (C).

50 0.00 1. #: Street lightings having 'automatic timers' for switching 'on/off' would be levied Demand Charges on the lower of the following: (A. 100 per 10 kW load or part thereof above 10 kW load shall be payable. Actual Recorded Demand Page 215 of 302 . 2. 50% of the Contract Demand (B. Additional Fixed Charge of Rs.00 0.00 -0. $$: Fixed charge of Rs.9 of 2013 Sl. Fuel Adjustment Cost (FAC) will be applicable to all consumers and will be charged over the above tariffs. MERC Order for RInfra-D for MYT for Second Control Period Tariffs Fixed/ Demand Charge Wheeling Charges (Rs/kWh) Energy Charge (Rs/kWh) Regulatory Asset Charge (Rs/kWh) Consumer category & Consumption Slab categories 0600 hours to 0900 hours 0900 hours to 1200 hours 1200 hours to 1800 hours 1800 hours to 2200 hours 2200 hours to 0600 hours 0. 100 per month will be levied on residential consumers availing 3 phase supply.Case No. 3. on the basis of the FAC formula prescribed by the Commission.75 Notes: 1.

24 13.26 1.LT Commercial 0-20 kW > 20 kW and < 50 kW > 50 kW LT III .74 0.24 5.Advertisement & Hoardings.36 0.57 1. 40 per month$$ Rs.11 0. 2014 (for FY 2014-15) Tariffs Consumer category & Sl. floodlights & neon signs LT VI – Streetlights LT VII – Temporary Supply TSR – Temporary Supply Religious Rs 200 per month 1.7 MERC Order for RInfra-D for MYT for Second Control Period REVISED TARIFFS WITH EFFECT FROM 1 APRIL. 200 per kVA per month Rs.22 Rs.47 1.58 4.76 5.03 1.39 1.26 7.9 of 2013 5.31 1. 5 per month 1.31 6 7 (A) 1.24 1.36 6.24 2.24 3.51 1. 75 per month$$ Rs.Residential (BPL) LT I – Residential 0-100 units 101-300 units 301 to 500 units Above 500 units (balance units) 2 (A) (B) (C) 3 LT II . 100 per month$$ 1.24 1.17 Rs.04 4 1.86 1.76 1.20 0.26 Page 216 of 302 Rs.24 0.24 5. Consumption Slab Fixed/ Demand Charge Wheeling Charges (Rs/kWh) Energy Charge (Rs/kWh) Regulatory Asset Charge (Rs/kWh) LOW TENSION CATEGORIES 1 LT I .85 .Case No.24 7. 250 per month Rs.24 1. incl. 250 per month Rs.24 5.24 4.76 2.00 5 1. 400 per month Rs 200 per kVA per month# 1.LT Industrial above 20 kW LT V .24 1. 200 per kVA per month Rs.LT Industrial below 20 kW load LT IV .08 0.

49 1.00 1.46 0.24 5. and optional for LT II (A) and LT III category 0600 hours to 0900 hours 0900 hours to 1200 hours 1200 hours to 1800 hours 1800 hours to 2200 hours 2200 hours to 0600 hours 0.75 HIGH TENSION CATEGORIES 11 HT I – Industry HT II – Commercial HT III – Group Housing Society HT IV – Temporary Supply Rs 200 per kVA per month Rs 200 per kVA per month Rs 200 per kVA per month Rs 200 per connection per 0.50 0.24 1.Case No.86 1.04 TOD Tariffs (in addition to above base tariffs) – compulsory for LT II (B) and (C).36 1.64 5.24 9 10 1.91 0.00 12 0.61 0.28 1.64 7.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Tariffs Consumer category & Sl.76 Regulatory Asset Charge (Rs/kWh) 2.00 0.64 10.23 13 14 0.64 5. and LT X category.36 1. 250 per month 1.24 0. Consumption Slab Fixed/ Demand Charge Wheeling Charges (Rs/kWh) Energy Charge (Rs/kWh) 14.76 3.00 -0.77 (B) 8 TSO – Temporary Supply Others LT VIII – Crematoriums and Burial Grounds LT IX – Agriculture LT X. LT IV.69 Page 217 of 302 .Public Services Rs 200 per month Rs 200 per month Rs 20 per HP per month Rs.26 0.

Case No. 50% of the Contract Demand (B.Public Services TOD Tariffs (in addition to above base tariffs) for HT I. on the basis of the FAC formula prescribed by the Commission. Actual Recorded Demand Page 218 of 302 .00 1. 100 per 10 kW load or part thereof above 10 kW load shall be payable.61 1. Fuel Adjustment Cost (FAC) will be applicable to all consumers and will be charged over the above tariffs. 100 per month will be levied on residential consumers availing 3 phase supply.61 1. 5.64 6. Consumption Slab Fixed/ Demand Charge Wheeling Charges (Rs/kWh) Energy Charge (Rs/kWh) Regulatory Asset Charge (Rs/kWh) month 15 HT V – Railways (New Category) Rs 200 per kVA per month Rs 200 per kVA per month 0.00 0. $$: Fixed charge of Rs. #: Street lightings having 'automatic timers' for switching 'on/off' would be levied Demand Charges on the lower of the following: (A.75 Notes: 4.12 0.50 0. Additional Fixed Charge of Rs. 6.64 6. HT II and HT VI categories 0600 hours to 0900 hours 0900 hours to 1200 hours 1200 hours to 1800 hours 1800 hours to 2200 hours 2200 hours to 0600 hours 0.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Tariffs Consumer category & Sl.12 16 HT VI.00 -0.

93 5 1.93 0.97 4 1.19 6 7 (A) 1.89 1. incl.48 1. 5 per month 1.18 3.LT Commercial 0-20 kW > 20 kW and < 50 kW > 50 kW LT III .27 Rs. floodlights & neon signs LT VI – Streetlights LT VII – Temporary Supply TSR – Temporary Supply Religious Rs 200 per month 1.73 0.27 4.98 5. 200 per kVA per month Rs. 400 per month Rs 200 per kVA per month# 1.27 1.27 11. 2015 (for FY 2015-16) Tariffs Consumer category & Sl.27 0.84 1.23 0. 250 per month Rs.73 Page 219 of 302 Rs.LT Industrial above 20 kW LT V . Consumption Slab Fixed/ Demand Charge Wheeling Charges (Rs/kWh) Energy Charge (Rs/kWh) Regulatory Asset Charge (Rs/kWh) LOW TENSION CATEGORIES 1 LT I .84 .03 0.27 4.LT Industrial below 20 kW load LT IV .22 0.23 0.Residential (BPL) LT I – Residential 0-100 units 101-300 units 301 to 500 units Above 500 units (balance units) 2 (A) (B) (C) 3 LT II .01 1.73 2.98 4.27 2.30 0.27 1. 40 per month$$ Rs. 100 per month$$ 1.9 of 2013 5.27 3.56 1.8 MERC Order for RInfra-D for MYT for Second Control Period REVISED TARIFFS WITH EFFECT FROM 1 APRIL. 200 per kVA per month Rs. 75 per month$$ Rs.75 0.07 Rs.27 3.27 3.27 4.73 5.23 0.27 1.Case No.Advertisement & Hoardings.27 1. 250 per month Rs.

92 TOD Tariffs (in addition to above base tariffs) – compulsory for LT II (B) and (C).98 0.50 0. Consumption Slab Fixed/ Demand Charge Wheeling Charges (Rs/kWh) Energy Charge (Rs/kWh) 12.04 12 0.34 10 1.18 0.27 1.65 5.27 9 1.55 1.86 (B) 8 TSO – Temporary Supply Others LT VIII – Crematoriums and Burial Grounds LT IX – Agriculture LT X.17 13 14 0.15 0.Case No.52 Page 220 of 302 .35 1.36 0.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Tariffs Consumer category & Sl. and optional for LT II (A) and LT III category 0600 hours to 0900 hours 0900 hours to 1200 hours 1200 hours to 1800 hours 1800 hours to 2200 hours 2200 hours to 0600 hours 0.27 4.00 -0.83 Regulatory Asset Charge (Rs/kWh) 2. and LT X category.00 0.00 1.75 HIGH TENSION CATEGORIES 11 HT I – Industry HT II – Commercial HT III – Group Housing Society HT IV – Temporary Supply Rs 200 per kVA per month Rs 200 per kVA per month Rs 200 per kVA per month Rs 200 per connection per 0.73 3. LT IV. 250 per month 1.65 8.73 0.27 0.Public Services Rs 200 per month Rs 200 per month Rs 20 per HP per month Rs.65 5.65 6.30 1.

65 5.01 0. Additional Fixed Charge of Rs.00 1.65 5.35 1.01 16 HT VI. $$: Fixed charge of Rs.00 0. 9. Actual Recorded Demand Page 221 of 302 .Case No.00 -0. HT II and HT VI categories 0600 hours to 0900 hours 0900 hours to 1200 hours 1200 hours to 1800 hours 1800 hours to 2200 hours 2200 hours to 0600 hours 0.Public Services TOD Tariffs (in addition to above base tariffs) for HT I. 50% of the Contract Demand (B.50 0. on the basis of the FAC formula prescribed by the Commission. Consumption Slab Fixed/ Demand Charge Wheeling Charges (Rs/kWh) Energy Charge (Rs/kWh) Regulatory Asset Charge (Rs/kWh) month 15 HT V – Railways Rs 200 per kVA per month Rs 200 per kVA per month 0. #: Street lightings having 'automatic timers' for switching 'on/off' would be levied Demand Charges on the lower of the following: (A. 100 per month will be levied on residential consumers availing 3 phase supply. 8.35 1. 100 per 10 kW load or part thereof above 10 kW load shall be payable. Fuel Adjustment Cost (FAC) will be applicable to all consumers and will be charged over the above tariffs.75 Notes: 7.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Tariffs Consumer category & Sl.

00 Incentive 0% 1% 2% 3% 5% 7% Note: PF to be measured/computed upto 3 decimals.1 Whenever the average PF is less than 0.1.1 Power Factor Incentive (Applicable for all HT categories.954 0.1 Whenever the average power factor is more than 0.985 to 0. 1 2 3 4 5 6 Range of Power Factor 0. and FY 2015-16 is given in Annexure I to this Order.965 to 0.974 0. but excluding Taxes and Duties: Sl.96 0. FAC. and Fixed/Demand Charges. II (B) and II (C) to this Order.994 0.Case No.975 to 0.2. FAC.8.1. and LT IV categories) 5. after universal rounding off 5.964 0. 5. 5. FY 2014-15. LT II (C).2 Power Factor Penalty (Applicable for all HT categories. and LT II (B). and LT II (B).000 Power Factor Level 0.8.95 0.9.95.995 to 1. reliability charges. but excluding Taxes and Duties: Page 222 of 302 .984 0.1 The category-wise revenue with revised tariffs excluding and including Regulatory Asset Charge for FY 2013-14.97 0.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 5.2 The approved Tariff Schedule has been given as Annexure II (A). reliability charges.9. and LT IV categories) 5. penal charges shall be levied at the rate of the following percentages of the amount of the monthly bill including energy charges.9. LT II (C). and Fixed/Demand Charges.9 INCENTIVES AND DISINCENTIVES 5. an incentive shall be given at the rate of the following percentages of the amount of the monthly bill including energy charges.951 to 0.1.955 to 0.9.9.99 1.98 0.

855 to 0...884 0.844 0.885 to 0.875 to 0.9. after universal rounding off 5.84 0.865 to 0. Range of Power Factor 0.825 to 0.. 1 2 3 4 5 6 7 8 9 10 .87 0.900 0.86 0.88 0.89 0.83 0.85 0.90 0.3 Prompt Payment Discount 5..814 .835 to 0.3.. Penalty 0% 2% 3% 4% 5% 6% 7% 8% 9% 10% .. Page 223 of 302 . MERC Order for RInfra-D for MYT for Second Control Period Power Factor Level 0..834 0.824 0.845 to 0. Note: PF to be measured/computed upto 3 decimals.874 0.895 to 0.864 0.894 0..9 of 2013 Sl.854 0.805 to 0.81 .Case No.9.82 0.1 A prompt payment discount of one percent on the monthly bill (excluding Taxes and Duties) shall be available to the consumers if the bills are paid within a period of 7 working days from the date of issue of the bill.815 to 0.

this incentive will be applicable to consumers where payment of arrears in instalments has been granted by RInfra-D. and the same is being made as scheduled. For the purpose of computation of time limit for payment of bills.4. etc. the load factor rebate will be available only if the consumer has no arrears with RInfra-D. No.1 The rate of interest chargeable on arrears will be as given below for payment of arrearsInterest Rate p. The total rebate under this head will be subject to a ceiling of 15% of the energy charges for that consumer. and HT VI categories only. HT II.9.1 In case the electricity bills are not paid within the due date mentioned on the bill.1 Consumers having load factor over 75% upto 85% will be entitled to a rebate of 0.3) Payment made after 3 months and before 6 months (3 .a. will not be excluded.6) Payment made after 6 months (> 6) 5.9.9. (%) 12% 15% 18% Sr.75% on the energy charges for every percentage point increase in load factor from 75% to 85%. Consumers having a load factor over 85 % will be entitled to rebate of 1% on the energy charges for every percentage point increase in load factor from 85%.9.9. as the case may be. The Load Factor has been defined below: Load Factor = Consumption during the month in MU Maximum Consumption Possible during the month in MU Page 224 of 302 .5 Rate of Interest on Arrears 5.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 5. This incentive is limited to HT I.4 Delayed Payment Charges (DPC) 5.6 Load Factor Incentive 5. Further. delayed payment charges of 2 percent on the total electricity bill (including Taxes and Duties) shall be levied on the bill amount.5. However.9. 5.Case No.6. 1 2 3 Delay in Payment (months) Payment after due date upto 3 months (0 . “the day of presentation of bill” or “the date of the bill” or "the date of issue of the bill". and payment is made within seven days from the date of the bill.

(The billing demand definition excludes the demand recorded during the non-peak hours. RInfra-D’s Petition in Case No.1. 5.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Maximum consumption possible = Contract Demand (kVA) x Actual Power Factor x (Total no. latest by 30 November. 2014. even if the maximum demand exceeds the contract demand in that duration.1. The Commission will undertake the mid-term review of RInfra-D’s performance during the third quarter of FY 2014-15. RInfra-D is directed to submit its Petition for mid-term review of its performance during the third quarter of FY 2014-15. the consumer would be subjected to the penal charges for exceeding the contract demand and has to pay the applicable penal charges).10. Sd/(Vijay L. However.Interruption/non-supply to the extent of 60 hours in a 30 day month has been built in the scheme. 2013 and shall continue to be in force for the entire Control Period till 31 March. of hrs during the month less planned load shedding hours*) * . 22:00 hrs to 06:00 hrs and therefore.2 With the above. P.1 This Order on the ARR of RInfra-D for MYT for the second Control Period from FY 2012-13 to FY 2015-16 shall come into force with effect from 1 September. Raja) Chairman Page 225 of 302 . 5.e. with detailed reasons for deviation in performance..10 APPLICABILITY OF THE ORDER 5.10.6. then the load factor incentive will not be payable in that month. i. load factor incentives would be applicable.9 of 2013 stands disposed off.Case No. 5.2 In case the billing demand exceeds the contract demand in any particular month. 2016.9. Sonavane) Member Sd/(V.

2003 for this Case Consumer Representative u/s.Saha Shri Mohan Limaye Smt.R.Mishra Shri R.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Appendix -1 List of attendees for the Technical Validation Session dated February 8.K.Mehta Shri Kapil Sharma Shri Vivek Mishra Shri Kishor Patil Shri Ganesh Balasubramaniam Shri A. Shraddha Kaley Smt Varsha Nijasure Shri Anvesh Jain Shri K. Bharatiya Udhami Avam Upbhokta Sangh Shri Ashok Pendse. No. 94(3) of the EA.Case No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Name of the Attendee Shri Raksh Pal Abrol. 94(3) of the EA. TBIA Shri D. 2013 Sr.Chopra Institution/Individual Consumer Representative u/s. Vijaya Bhatawdekar Smt. 2003 for this Case Deloitte Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Individual Page 226 of 302 .

Khan Individual Shri Rajesh Parab Individual Page 227 of 302 . Sneha Individual Shri Jitu Pawar Individual Shri Ulhas Chaudhari Individual Shri Soumen Mukherjee Individual Shri Mohmmad Sikandar Azam Individual Smt Virginia Dias Individual Shri Vishal C Rajani Individual Smt. 94(3) of the EA. Mangala Kadam Individual Smt. Manali Jadhav Individual Representative Shree Swami Samarth Seva Mandal Shri Santram Yadav Individual Shri Sachin Gharat Individual Smt. Mohmmad Qureshi Individual Smt. 2013 Sr. Ponrathnam Shri Raksh Pal Abrol Shri Shirish Deshpande Shri Sandeep Ohri Vel Induction Hardenings Bharatiya Udhami Avam Upbhokta Sangh 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Mumbai Grahak Panchayat Consumer Representative Other Representatives Shri Arun Kadam on behalf of Thakur Ramesh Singh Individual Shri Bhalchandra Mhatre Individual Adv. 2003 for this Case Shri N. Mhatre Individual Shri Bhaskar Bhoir Individual Shri Sagar Vartak Individual Shri Waris M. No.Case No.Arun Jagtap Individual Shri Atul Bhatkalkar Individual Shri Gautam S. 1 2 3 4 Name of the Attendee Institution/Individual Consumer Representative u/s. Nilam Dhavan Individual Shri Chandrakant Mudras Individual Shri Vishnu N. Shataram Karande Individual Smt.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Appendix -2 List of attendees for the Public Hearing dated April 06. Ankita Salvi Individual Shri. Jadhav Individual Dr.

BMC BMC Individual Page 228 of 302 . Samiksha Mali Shri Chandrakant Lad Smt. Murudkar Shri Arjunrao Kadam Shri Rajendra Pawar Shri Harishchandra Govalkar Shri Ganesh Khankar Shri George John Shri Shailesh Jayaswal Shri Vilas Karjawakar Shri Pravin Khedekar Smt. R.9 of 2013 Sr. Mohit Jadhav Representative Representative Representative Shri N.Sneha Shirke Shri Sandeep Yelmane Shri Ramesh Dubey Shri Anand Upadhyay Smt. Smita Matondkar Shri Singh Representative Representative Shri Baban Chaskar Representative Representative Shri Shaikh M. Individual Retailers Association Of India (Haria & Co) Shopping Association Of India Individual Indus Towers Ltd. Hussain Representative Representative Adv. Patane Shri Atul Kapadia Institution/Individual AWEIS Electronics’ & Electricals Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Chanakya Electric Works Kalika Electrical Enterprises Individual Himalaya Electric Works Mumbai Metro One Pvt. 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 MERC Order for RInfra-D for MYT for Second Control Period Name of the Attendee Representative Shri Baban B. Ltd. Ltd.Case No. Arch-V-Shan Creation’s Prana Studios Pvt. Kamble Shri Pradeep Bhogal Shri Subhash Desai Shri Dilip R.A. Shaikh Shri A. No.

P. Sreeram Pethe Shri Sanjiv Shah Shri Jinag Shah Shri N. Inamdar Shri Sandeep Jain Shri Suhas N. I.Shital Khiraiya Shri Jana Shewale Shri. Thapar Shri S. 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 MERC Order for RInfra-D for MYT for Second Control Period Name of the Attendee Shri Rupesh Sankhe Shri Vinod Nibehe Shri Mahesh Joshi Shri Sachin Lade Smt. No. Shrivastav Shri Ram Verma Shri Pankaj Bhargava Shri Rajiv Nauhare Smt. Chhaya Bhonslay Institution/Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Tata Power Company Ltd.Chhavi Chauhan Shri Nishant Bhargvara Smt. Smt. Sakharkar Shri Suniel Shukla Smt.9 of 2013 Sr. Gokarni Shri M.Case No.V. P. C. Pratima Bhargava Smt. Joshi Shri M. Dipak S. Individual Individual Individual Tata Power Company Ltd. Porkodi Shri Gaurav Gautam Shri R. Kulkarni Shri H. D.Swati Mehendale Shri Suniel Shukla Shri Niranjan C. Kulkarni Smt. Karhade Shri R.Nutan Kolhatkar Shri. Salvi Smt H. Aditi Sachdev Shri Rohit Jaiswal Shri P. Individual Individual Individual Individual Individual Individual Individual Individual Tata Power Co Ltd Individual Individual Individual Individual Page 229 of 302 . P.

T. Gupta Smt. Shri Sachin Patil Shri Dattaram Ghuge Shri Bakulesh Motivala Shri Arvind Yadav Shri Kartik Krishnan Shri Hemant Wal Shri Manish Varshiriya Shri Narayanan V. Nandanwankar Shri K. R. Chandrama Rai Shri M. No.9 of 2013 Sr. Shri Subhadeep Ghosh Shri Mohmmad Afzal Shri Abhishek Ramkrishna Shri Deepak Ojha Smt Brinda Alankar Shri D. Pawar Shri Parthav Sampat Shri Dattaram Ghuge Shri Basil Pereira Smt. Chopra Shri Aditya Smt Aditi Garg Shri Ganesh D. Cooper Shri Rajesh Mishra Institution/Individual Individual Individual Individual Individual Individual Individual Individual Individual LVPIN Ltd. K.K. Namrata Samant Shri K. Maru Shri Amberish Gaekwad Shri A. R. Das Shri Suresh Mahangade Shri Ashish Vhedanar Shri Mahesh Kajuleshwari Shri Karim Noorani Shri U. K. RTI Activist Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Page 230 of 302 . R.Case No. Waghmare Shri Satish Kasbe Shri Totaram B. Individual Individual Individual Individual PWC Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Consumer Human Right. 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 MERC Order for RInfra-D for MYT for Second Control Period Name of the Attendee Shri Runit N.

Rajesh Mishra Shri Sachitanand Mishra Shri Shashi Parmar Shri Bhavna Mhatre Shri Sandep Tale Smt.N. Shirke Shri Sunil Joglekar Shri Pradeep Jain Shri Prakash Khandve Smt. 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 MERC Order for RInfra-D for MYT for Second Control Period Name of the Attendee Shri Tushar Shah Smt Babita Mishra Shri Sachin Kale Shri Santosh Kalantri Shri Maruti Kheduskar Shri Chandrakant Sahu Shri Narendra Saha Shri B. H.Case No. A. Ankita Salgaonkar Shri . Girae Shri D. Sushma Electric & Company Individual Individual Individual Individual Individual Individual Individual Individual Individual Page 231 of 302 . Borivali Hypercity Retail Ltd.E. M.R. Shri Ramsambhar Yadav Shri S.9 of 2013 Sr. Mathur Shri M. No. Ujjawla Mehta Institution/Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Shopper’s Stop Individual Individual Individual Individual Individual Individual Tata Power Co Ltd Indian Hotel & Restaurant Association Prabodhan Samaj Unnati Kendra.Shweta Tiwari Shri Dattatraya Chaugule Shri Devendra Ambekar Shri Shyam Sonawane Mrs. Rao Shri Tarak Oza Shri Deepak Mhose Shri T. Chaudhary Shri Sanjeet Singh Shri Abhijit Dhamdhere Shri Viren Devathi Shri Arvind Shukla Shri Sachin Lade Shri Vinod Bhole Shri Nikam K.

S.Case No.Chavan Shri R Shanbhag Shri R.Keelar Shri N Sonawane Institution/Individual Shoppers Stop.Sridhar Krishnamurthy Shri Kapil Sharma Shri Vivek Mishra Shri Ashok Kamble Shri Ganesh Balsubramanian Shri P. Bandra Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Individual Bharatiya Republican Party Bahujan Mahasangh Samarth Electricals Individual Individual Individual Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Page 232 of 302 .Mughukumar Shri Shamim Longekar Smt Laxmibai Smt Santabai Pawar Shri Umesh Rane Shri Naresh R.R. No.Ghodekar Shri Amey Naik Shri Bankim B Shri P.R.J.J.S.D’Souza Shri R.Pandya Shri Karn Pallav Shri Abaji Niralkar Shri Ram Verma Shri Anvesh Jain Shri S. 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 MERC Order for RInfra-D for MYT for Second Control Period Name of the Attendee Shri Raees Shri Viplav Avasare Shri Kiran Dhanana Shri C. Representative Representative Shri Jitendra Tarde Shri Vilas Potnis Shri Gautam Jadhav Shri S.G.9 of 2013 Sr.Mhaske Shri Kishor Patil Shri Vilas Kapile Shri. Panchul Shri V.

A.M.Killekar Institution/Individual Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Reliance Infrastructure Ltd Page 233 of 302 .Varadkar Shri Jaykumar Waghela Shri Sujit Rao Shri Vinay Modi Smt Neeta Dolas Shri Prakash Pareria Shri Waman Kadam Shri Ankush Kamble Shri R.Case No.G. No.Andhari Shri M. 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 MERC Order for RInfra-D for MYT for Second Control Period Name of the Attendee Shri Vivek Shah Shri M.9 of 2013 Sr.Kulkarni Shri S Trivedi Shri Nitin Kate Shri Vivek Mane Shri Debashish Banerjee Shri S.

Temporary Supply HT .60 3.00 4.14 0.72 92.00 238.192 0.97 71.71 14.50 5.Crematorium & Burial Grounds LT IX: LT -Agriculture Total LT HT HT I: HT-Industry HTII : HT.15 210.28 90.75 154.10 90.71 250.36 0.23 37.LT Industrial upto 20 kW LT IV .73 1.85 79.44 0.26 51.69 5.77 277.Case No.59 103.33 172.03 156.81 180.above 50 kW LT III .03 150.18 159.92 609.54 44.634 0.15 3.19 141.25 105.23 0.04 274.01 14.92 265.30 0.46 0.29 0.52 547.11 6.07 5.11 142.35 110.36 389.85 1.310 72.126.Commercial HT III: HT-Group Housing Society HTIV : HT .63 69.20-50 kW LT II (c) .41 0.01 653.388 71.13 4.664 0.88 245.202.91 65.75 4.82 143.Advertisements and Hoardings LT VI: LT -Street Lights LT-VII (A): LT -Temporary Supply Religious LT-VII (B): LT -Temporary Supply Others LT VIII: LT .60 127.65 45.86 158.01 3.01 643.01 4.42 14.01 53.796 Page 234 of 302 .80 0.45 174.27 66.31 364.14 263.29 126.96 72.30 71.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Annexure-I Revenue from Sale of Power at revised Tariffs for the Second Control period excluding RAC (Rs Crore) Particulars LT LT I .34 0.90 754.51 4.07 110.066.01 3.88 162.30 1.Below Poverty Line LT -I Residential (Single Phase) 0-100 101-300 301-500 500and above LT -I Residential Three phase 0-100 101-300 301-500 500and above LT II (a) .39 864.17 54.48 146.90 51.Railway (New Category) Total HT Total Revenue from consumers FY 12-13 FY 13-14 FY 14-15 FY 15-16 0.67 159.02 161.407 59.54 354.55 4.32 0.68 45.39 107.48 0.31 764.96 181.LT Industrial above 20 kW LT-V : LT.828 61.25 4.01 148.00 593.80 6.94 200.24 221.31 52.0-20 kW LT II (b) .86 259.32 159.71 13.01 643.13 136.

13 16.78 60.08 52.64 5.87 4.01 4.60 126.38 6.87 81.47 237.88 0.211.54 272.31 143.19 83.35 0.44 51.03 106.24 4.36 0.05 299.97 161.Advertisements and Hoardings LT VI: LT -Street Lights LT-VII (A): LT -Temporary Supply Religious LT-VII (B): LT -Temporary Supply Others LT VIII: LT .925 69.Below Poverty Line LT -I Residential (Single Phase) 0-100 101-300 301-500 500and above LT -I Residential Three phase 0-100 101-300 301-500 500and above LT II (a) .99 1.43 230.95 182.01 4.Railway (New Category) Total HT Total Revenue from consumers FY 13-14 FY 14-15 FY 15-16 0.01 737.79 116.375 Page 235 of 302 .41 398.88 0.86 182.02 42.92 104.Case No.79 0.03 125.97 184.47 625.01 3.56 0.>20-50 kW LT II (c) .Temporary Supply HT .0-20 kW LT II (b) .06 59.90 4.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Revenue from Sale of Power at revised Tariffs for the Second Control period including RAC (Rs Crore) Particulars LT LT I .34 146.34 162.01 739.LT Industrial above 20 kW LT-V : LT.40 51.268.53 16.09 0.30 449.37 255.LT Industrial upto 20 kW LT IV .Crematorium & Burial Grounds LT IX: LT -Agriculture Total LT HT HT I: HT-Industry HTII : HT.61 857.67 299.25 124.55 6.78 58.81 203.07 174.46 0.70 76.45 5.34 285.above 50 kW LT III .54 6.56 59.04 81.67 689.02 299.365 69.01 746.77 415.Commercial HT III: HT-Group Housing Society HTIV : HT .59 157.23 204.22 103.53 0.18 6.45 1.76 167.06 989.43 92.780 0.45 16.81 168.92 167.263 0.865 79.

will be payable by the consumers in addition to the charges levied as per the tariffs hereunder.Case No. These tariffs supersede all tariffs so far in force including in the case where any agreement provides specifically for continuance of old agreemental tariff. has determined. The tariffs are applicable for supply at one point only. 2. 2013. 2013 in Case No. the figures of Energy Charge relate to Rupees per unit (kWh) charge for energy consumed during the month. 7. in exercise of the powers vested in it under Section 61 and Section 62 of the Electricity Act. 5. Tax on Sale of Electricity (ToSE) and other charges as levied by Government or other competent authorities and the same. 2005 in force (i. or any modifications thereof as may have been already agreed upon. if any that may be issued by the Commission from time to time. subject to conformity with the prevalent Supply Code. The tariffs are subject to the provisions of the MERC (Electricity Supply Code and Other Conditions of Supply) Regulation. 2013) and directions. The tariffs are exclusive of Electricity Duty. as on 1 September. Fuel Adjustment Costs (FAC) Charge as may be approved by the Commission from time to time shall be applicable to all categories of consumers and will be charged over and above the tariffs on the basis of FAC formula specified by the Commission and computed on a half-yearly basis. the tariff for supply of Electricity by Reliance Infrastructure Limited – Distribution Business’ (RInfra-D) for various classes of consumers as applicable from 1 September.. Unless specifically stated to the contrary. 2003 and all other powers enabling it in this behalf. in cases where RInfra-D considers that there are considerable load fluctuations in operation 6. 3. General 1. RInfra-D reserves the right to measure the Maximum Demand on any period shorter than 30 minutes period of maximum use.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period ANNEXURE II (A) RELINACE INFRASTRUCTURE LIMITED SCHEDULE OF ELECTRICITY TARIFFS (With Effect from 1 September. by its Order dated 1 September. Page 236 of 302 .9 of 2013. 2013) The Maharashtra Electricity Regulatory Commission. Tariffs are subject to revision and/or surcharge that may be levied by RInfra-D from time to time as per the directives of the Commission. 8.e. 4.

The categorisation of such BPL consumers will be reassessed at the end of the financial year. cooking. washing/cleaning.11 Regulatory Asset Charge (Rs. and who have consumed less than 360 units per annum in the previous financial year. mosques. Once a consumer is classified under the LT-I category.I Residential (Single Phase) Applicability Electricity used at Low/Medium Voltage for operating various appliances used for purposes like lighting. heating../kWh) 0. gurudwaras. All the new consumers subsequently added in any month with sanctioned load of upto and less than 0./kWh) 0.Effective from 1 September. Provided that Halls. The applicability of Below Poverty Line (BPL) category will have to be assessed at the end of each financial year. pumping in the following places: a) Private residential premises. will be considered in BPL Category. then the consumer will henceforth. Gardens or any other portion of the premises that may be let out for Page 237 of 302 . entertainment/leisure. i.Case No.22 Fixed/Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs. 2014 (FY 2013-14) Consumption Slab ( kWh) BPL Category Rs.Below Poverty Line Applicability MERC Order for RInfra-D for MYT for Second Control Period Residential consumers who have a sanctioned load of upto and less than 0.e. then he cannot be classified under BPL category. churches.9 of 2013 LOW TENSION (LT) TARIFF LT I . cooling. Similarly. 30 units per month. the classification of BPL consumers who have been added during the previous year would be assessed on a pro-rata basis. etc. on a pro-rata basis. 2013 to 31 March.1 kW and consumption between 1 to 30 units (on pro rata basis of 1 unit/day) in the first billing month. Rate Schedule . b) Premises exclusively used for worship such as temples.19 LT. be considered under the LT-I residential category. In case any BPL consumer has consumed more than 360 units in the previous financial year. 5 per month 1.1 kW.

2013 to 31 March.12 1. etc. 100 per month will be levied on residential consumers availing 3 phase supply. Telephone booth owned/operated by handicapped person subject to verification and confirmation by RInfra’s concerned Zonal Chief Engineer.22 1..22 Energy Charge (Rs. Working Women Hostels.48 0. 2014 (FY 2013-14) Consumption Slab ( kWh) 0-100 units 101 – 300 units 301 – 500 units Above 500 units (balance units) Rs.78 6. All Ladies Hostels. 75 per month$$ Fixed/Demand Charge Wheeling Charge (Rs/kWh) 1. Handicap or Mentally deranged persons (ii) Remand Homes (iii) Dharamshalas. Doctors./kWh) 2. Additional Fixed Charge of Rs.Case No. All Students Hostels affiliated to Educational Institutions.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period c) d) e) f) g) consideration or used for commercial activities would be charged at LT-II tariff as applicable. Other type of Hostels.47 Note: a) $$ : Above fixed charges are for single phase connections.22 1./kWh) Regulatory Asset Charge (Rs. Residential premises used by professionals like Lawyers. etc. Chartered Accountants. like (i) Homes/Hostels for Destitute. etc.23 4. Rate Schedule – Effective from 1 September.. LT II: Low Tension – Non-Residential or Commercial Page 238 of 302 . in furtherance of their professional activity in their residences but shall not include Nursing Homes and any Surgical Wards or Hospitals. Professional Engineers.28 0. 100 per 10 kW load or part thereof above 10 kW load shall be payable. subject to verification and confirmation by RInfra’s concerned Zonal Chief Engineer.84 1. Fixed charge of Rs.22 1. 40 per month$$ Rs. 100 per month$$ Rs. such as Students (Girls) Hostels.78 9.

II (a) having ToD meter installed. washing/cleaning.9 of 2013 Applicability MERC Order for RInfra-D for MYT for Second Control Period Electricity used at Low/Medium Voltage in all non-residential. Leisure. Commercial and Business premises.00 0. cinemas and theatres. c) Combined lighting and power services for Entertainment including film studios. entertainment/leisure. including Shopping malls./kWh) 6.30 8. d) Electricity used for the external illumination of monumental/historical/heritage buildings approved by MTDC.00 -0. Meeting Halls and Recreation places. non-industrial premises and/or commercial premises for commercial consumption meant for operating various appliances used for purposes such as lighting. 2014 (FY 2013-14) Consumption Slab ( kWh) (a) 0-20 kW (b) > 20 kW and ≤ 50 kW (c ) > 50 kW Rs. Hospitality. 250 per month Rs.40 1. Hospitals and Dispensaries.Effective from 1 September.22 1. including multiplexes.22 1. Page 239 of 302 . heating. pumping in following places: a) Non-Residential.05 1. cooling.75 Note: a) The ToD tariff is available to LT-II (b) and (c) category.00 1. 2013 to 31 March. cooking.Case No.78 9.50 0. and optionally available to LT.22 Energy Charge (Rs. Rate Schedule . 200 per kVA per month Fixed/Demand Charge Wheeling Charge (Rs/kWh) 1.46 TOD Tariffs (in addition to above base tariffs) 0600 to 0900 hours 0900 to 1200 hours 1200 to 1800 hours 1800 to 2200 hours 2200 to 0600 hours 0. b) All Educational Institutions.23 1./kWh) Regulatory Asset Charge (Rs.

including that used within these premises for general lighting. etc.00 0.75 Note: a) The ToD tariff is optionally available to LT.III having ToD meter installed. This consumer category also includes IT industry and IT enabled services (as defined in the Government of Maharashtra Policy). heating/cooling.00 -0..Industrial upto 20 kW Applicability Electricity used at Low/Medium Voltage in premises for purpose of manufacturing.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period LT III: LT. This consumer category also includes IT industry and IT enabled services (as defined in the Government of Maharashtra Policy).Case No./kWh) 1.in addition to above base tariffs) 0600 to 0900 hours 0900 to 1200 hours 1200 to 1800 hours 1800 to 2200 hours 2200 to 0600 hours 0. 2013 to 31 March.Effective from 1 September.50 0.8 HP). /kWh) 6.78 Regulatory Asset Charge (Rs. etc. 250 per month 1.12 TOD Tariffs ( Optional . Rate Schedule . heating/cooling.22 Fixed/Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs. having a sanctioned load upto and including 20 kW (26. and having sanctioned load greater than 20 kW (26. Page 240 of 302 . LT IV: LT– Industrial above 20 kW load Applicability Electricity used at Low/Medium Voltage in premises for purpose of manufacturing including that used within these premises for general lighting.8 HP).00 1. 2014 (FY 2013-14) Consumption Slab ( kWh) 0-20 kW Rs.

Advertisements and Hoardings Applicability Electricity used for the purpose of advertisements. clubs.22 Fixed/Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs. historical/heritage buildings approved by MTDC. 2013 to 31 March. 200 per kVA per month 1. theatres. 2014 (FY 2013-14) Consumption Slab ( kWh) Above 20 kW Rs. hoardings and other conspicuous consumption such as external flood light. 2013 to 31 March.00 0. which shall be covered under LT-II category depending upon Sanctioned Load.00 1. displays.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Rate Schedule . neon signs at departmental stores.Case No.50 0./kWh) 1.75 LT V: LT . Rate Schedule .Effective from 1 September. hotels and other such entertainment/leisure establishments except those specifically covered under LT-II as well as electricity used for the external illuminations of monumental.53 Regulatory Asset Charge (Rs. malls. multiplexes. 2014 (FY 2013-14) Page 241 of 302 .Effective from 1 September.00 -0.08 TOD Tariffs (in addition to above base tariffs) 0600 to 0900 hours 0900 to 1200 hours 1200 to 1800 hours 1800 to 2200 hours 2200 to 0600 hours 0./kWh) 6.

200 per kVA per month 1. Rate Schedule ./kWh) Regulatory Asset Charge (Rs. bus shelters. lighting in public gardens. that is used for the purpose of indicating/displaying the name and other details of the shops or Commercial premises.Effective from 1 September. police chowkies.Case No. Such usage of electricity shall be covered under the prevailing tariff of such shops or commercial premises. traffic island. 2013 to 31 March./kWh) All Units Rs./kWh) All Units Rs.28 1./kWh) Regulatory Asset Charge (Rs. for which electric supply is rendered. shall not be under LT V tariff Category. other such common public places irrespective of whether such facilities are being provided by the Government or the Municipality.9 of 2013 Consumption Slab ( kWh) Fixed / Demand Charge MERC Order for RInfra-D for MYT for Second Control Period Wheeling Charge (Rs/kWh) Energy Charge(Rs.19 Note  Street Lightings having ‘Automatic Timers’ for switching On/Off the street lights would be levied Demand Charges on lower of the following– a) 50 percent of ‘Contract Demand’ or Page 242 of 302 . 400 per month 1.22 15. traffic lights. or Port Trust or other private parties. LT VI: LT.22 7. public fountains. public sanitary conveniences.Street Lights Applicability Electricity used at Low/Medium Voltage for purpose of public street lighting.78 2. 2014 (FY 2013-14) Consumption Slab ( kWh) Fixed / Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs.38 Note a) The electricity.

Rate Schedule .78 Regulatory Asset Charge (Rs. etc. 200 per connection per month Rs.22 0. 2013 to 31 March. Diwali. decorative lighting for exhibitions.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period b) Actual ‘Recorded Demand’ LT VII: LT-Temporary Supply Applicability LT VII (A) – Temporary Supply Religious (TSR) Electricity supplied at Low/Medium Voltage for temporary purposes during public religious functions like Ganesh Utsav. LT VIII: LT.Effective from 1 September. 150 per 10 kW load or part thereof above 10 kW load shall be payable. film shooting. 200 per connection month 1.Case No. and electricity used at low/medium voltage on an emergency basis for purpose of fire fighting activity by the fire department in residential/other premises. Christmas. Eid./kWh) LT VII (A) – All Units LT VII (B) – All Units Rs. marriages./kWh) 4. and any activity not covered under tariff LT VII (A).38 Note : In case of LT VII (B) the Additional fixed charges of Rs..Temporary Supply Others (TSO) Electricity used at Low/Medium Voltage on a temporary basis for any construction work. Ambedkar Jayanti. etc. or areas where community prayers are held.78 2. Ram Lila. Guru Nanak Jayanti.22 15.84 1. 2014 (FY 2013-14) Consumption Slab (kWh) Fixed/Demand Charge Wheeling Charge (Rs/kWh) Energy Charge ( Rs.Crematorium and Burial Grounds Applicability Page 243 of 302 . Navaratri. LT VII (B) . circus. Moharam.

Case No. and the consumption in this meter will be chargeable under LT-II Commercial rates as applicable.64 LT IX .Public Services Applicability Page 244 of 302 . and will be applicable only to the portion catering to such activities.Agriculture Applicability Electricity used at Low/Medium Voltage by LT agricultural consumers for motive power loads exclusively used for agricultural purposes. Rate Schedule .Effective from 1 September./kWh) All Units Rs. then a separate meter will have to be provided for the same.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Electricity used at Low/Medium Voltage in Crematorium and Burial Grounds for all purposes including lighting.LT.37 Regulatory Asset Charge (Rs. Rate Schedule . 2014 (FY 2013-14) Consumption Slab (kWh) Fixed/Demand Charge Wheeling Charge (Rs/kWh) Energy Charge ( Rs. 200 per connection per month 1. 2013 to 31 March./kWh) 0. 2014 (FY 2013-14) Consumption Slab ( kWh) All Units Rs 20 per HP per month 1.Effective from 1 September.22 0.24 LT X . 2013 to 31 March.22 Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs./kWh) 0. and in case part of the area is being used for other commercial purposes./kWh) 3.64 Regulatory Asset Charge (Rs.

Airports. Post Offices. Railway except traction (shops on the platforms/railway station/bus stands will be billed under Commercial category as per the respective slab).00 1. pathology laboratories. Spiritual Organisations which are service oriented.22 Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs.Case No. Public libraries and Reading rooms. Hospitals. 2013 to 31 March. Defence establishments (army. Prisons. primary health care centres. Fire Service Stations.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period This Tariff shall be applicable to Educational Institutions./kWh) (Rs. dispensaries.59 1.50 0. 2014 (FY 2013-14) Consumption Slab ( kWh) All Units Rs 250 per month 1. Sports Club / Health Club / Gymnasium / Swimming Pool attached to the Educational Institution / Hospital provided said Sports Club / Health Club / Gymnasium / Swimming Pool is situated in the same premises and is exclusively meant for the students / patients of such Educational Institutions and Hospitals.TARIFF HT I: HT – Industry Page 245 of 302 .Effective from 1 September. Jails. navy and air-force).00 0. Police Stations. Courts. Rate Schedule ./kWh) Regulatory Asset Charge 6.09 TOD Tariffs (in addition to above base tariffs) 0600 to 0900 hours 0900 to 1200 hours 1200 to 1800 hours 1800 to 2200 hours 2200 to 0600 hours 0. Railway and State Transport Workshops.75 HIGH TENSION (HT) . State transport establishments.00 -0.

63 Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs. 2014 (FY 2013-14) Consumption Slab ( kWh) All Units Rs 200 per kVA per month 0. Page 246 of 302 .Effective from 1 September. taking 3-phase electricity supply at High Voltage.Commercial Applicability This category includes consumers of electricity such as all Educational Institutions.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Applicability This category includes consumers taking 3-phase electricity supply at High Voltage for purpose of manufacturing.00 1. Rate Schedule ./kWh) 7.Case No. all Hospitals taking supply at High Voltage. 2013 to 31 March.00 -0.00 0./kWh) 1. This Tariff shall also be applicable to IT Industry & IT enabled services (as defined in the Government of Maharashtra policy).50 0.75 HT II: HT.37 Regulatory Asset Charge (Rs.12 TOD Tariffs (in addition to above base tariffs) 0600 to 0900 hours 0900 to 1200 hours 1200 to 1800 hours 1800 to 2200 hours 2200 to 0600 hours 0.

2013 to 31 March.75 HT III: HT.27 TOD Tariffs (in addition to above base tariffs) 0600 to 0900 hours 0900 to 1200 hours 1200 to 1800 hours 1800 to 2200 hours 2200 to 0600 hours 0.00 -0./kWh) 8. Rate Schedule . Shopping Malls.e. including multiplexes.Effective from 1 September.Group Housing Society Applicability Page 247 of 302 .50 0.63 Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs.00 0. 2014 (FY 2013-14) Consumption Slab ( kWh) All Units Rs 200 per kVA per month 0.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period This category also includes consumers taking electricity supply at High Voltage for commercial purposes. LT II. including Hotels. cinemas and theatres. film studios.Case No. These downstream entities will pay appropriate tariff as applicable as per RInfra Tariff Schedule i./kWh) 1.42 Regulatory Asset Charge (Rs.00 1. The Consumers belonging to HT II requiring a single point supply for the purpose of downstream consumption by separately identifiable entities will have to either operate through a franchisee route or such entities will have to take individual connections under relevant category.

/kWh) 5.84 HT IV.Temporary Supply Applicability Electricity used at High Voltage on a temporary basis of supply for any construction work. This category also includes electricity supplied at High Voltage for temporary purposes during public religious functions like Ganesh Utsav.Effective from 1 September.63 Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs. circus. Such individual dwellings will pay appropriate tariff LT I: LT. Rate Schedule . decorative lighting for exhibitions. marriages. Christmas. Rate Schedule . Ram Lila. Navaratri. Ambedkar Jayanti.37 Regulatory Asset Charge (Rs. 2014 (FY 2013-14) Consumption Slab ( kWh) All Units Rs.12 1.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period This category includes Group Housing Societies taking single point electricity supply at High Voltage for consumption by individual dwellings. 2013 to 31 March. 2014 (FY 2013-14) Consumption Slab ( kWh) All Units Rs 200 per kVA per month 0. 2013 to 31 March.HT ./kWh) Regulatory Asset Charge (Rs. film shooting. 200 per connection per month Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs.Case No. Guru Nanak Jayanti.78 HT V: HT– Railways Applicability Page 248 of 302 ./kWh) 0.63 12. Diwali. etc. Moharam.Residential as per RInfra-D Tariff Schedule in force.Effective from 1 September./kWh) 0. etc. Eid. or areas where community prayers are held.

Case No. Rate Schedule ./kWh) 100/33/22/11/6.19 TOD Tariffs (in addition to above base tariffs) 0600 to 0900 0. Railway except traction (shops on the platforms/railway station/bus stands will be billed under Commercial category as per the respective slab). dispensaries. Fire Service Stations. Public libraries and Reading rooms./kWh) Regulatory Asset Charge (Rs. Railway and State Transport Workshops. Spiritual Organisations which are service oriented.6 kV to Railways including Metro and Monorail.87 1. Police Stations. State transport establishments.6kV All Units Rs. pathology laboratories.87 Regulatory Asset Charge (Rs.00 Page 249 of 302 . 2013 to 31 March. Sports Club / Health Club / Gymnasium / Swimming Pool attached to the Educational Institution / Hospital provided said Sports Club / Health Club / Gymnasium / Swimming Pool is situated in the same premises and is exclusively meant for the students / patients of such Educational Institutions and Hospitals.63 Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs./kWh) 1. 2014 (FY 2013-14) Consumption Slab ( kWh) All Units Rs 200 per kVA per month 0. Defence establishments (army. 200 per kVA per month 0.Effective from 1 September. Airports. 2013 to 31 March.Effective from 1 September. 2014 (FY 2013-14) Consumption Slab ( kWh) Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs./kWh) 7. hospitals. primary health care centres. Prisons. Rate Schedule . Jails. Courts.Public Services Applicability This Tariff shall be applicable to educational institutions. navy and air force).63 7.19 HT VI .9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Applicable to electricity supply at 100 kV/33 kV/ 22 kV/11 kV/6. Post Offices.

The details of applicable ZFAC for each month shall be available on RInfra website www.50 0. However. the rate and the reference number of the Government Resolution/ Order vide which the Electricity Duty and Tax on Sale of Electricity is made Page 250 of 302 .4 to 13./kWh) Regulatory Asset Charge (Rs. In case of any variation in the fuel prices and power purchase prices with respect to these levels.Case No. through the Fuel Adjustment Cost (FAC) component of Z-factor Charge.com. 2011.00 -0.9 of the MERC MYT Regulations. as may be given by the Commission from time to time and will be applicable to all consumer categories for their entire consumption.75 MISCELLANEOUS AND GENERAL CHARGES Fuel Adjustment Cost (FAC) Component of Z factor Charge The FAC Component of Z factor charge will be determined based on the approved Formula and relevant directions.00 1. as specified in Regulations 13. due to changes in the cost of power procured due to change in fuel cost. Electricity Duty and Tax on Sale of Electricity The electricity duty and Tax on Sale of Electricity will be charged in addition to charges levied as per the tariffs mentioned hereunder (as approved by the Commission) as per the Government guidelines from time to time.9 of 2013 Consumption Slab ( kWh) hours 0900 to 1200 hours 1200 to 1800 hours 1800 to 2200 hours 2200 to 0600 hours MERC Order for RInfra-D for MYT for Second Control Period Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs.rinfra./kWh) 0. RInfra-D shall pass on adjustments.

99 1. the following method for calculating the average power factor during the billing period shall be adopted- Average Power Factor = Total(kWH ) Total(kVAh) Wherein the kVAh is =  (kWh)   ( RkVAh) 2 2 (i. after universal rounding off Page 251 of 302 . FAC.965 to 0.95 0.95.00 Incentive 0% 1% 2% 3% 5% 7% Note: PF to be measured/computed upto 3 decimals.954 0.96 0.985 to 0.955 to 0.97 0.974 0.984 0. LT II (B).975 to 0. 1 2 3 4 5 6 Range of Power Factor 0.994 0. shall be stated in the bill. Square Root of the summation of the squares of kWh and RkVAh ) Power Factor Incentive (Applicable for all HT categories.com Power Factor Calculation Wherever. and Fixed/Demand Charges.951 to 0. A copy of the said resolution / Order shall be made available on the website www.rinfra. an incentive shall be given at the rate of the following percentages of the amount of the monthly bill including energy charges.Case No. the average power factor measurement is not possible through the installed meter.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period effective. reliability charges. but excluding Taxes and Duties: Sl.e. LT II (C) and LT IV categories) Whenever the average power factor is more than 0.995 to 1.98 0.964 0.000 Power Factor Level 0.

86 0. Note: PF to be measured/computed upto 3 decimals.884 0.875 to 0.82 0. Penalty 0% 2% 3% 4% 5% 6% 7% 8% 9% 10% .815 to 0.824 0. delayed payment charges of 2 percent on the total electricity bill (including Taxes and Duties) shall be Page 252 of 302 . reliability charges..844 0.874 0..885 to 0. LT II (B).825 to 0.. FAC.88 0. Power Factor Level 0.. and Fixed/Demand Charges.805 to 0.895 to 0..834 0.835 to 0. but excluding Taxes and Duties: Sl.89 0.87 0. penal charges shall be levied at the rate of the following percentages of the amount of the monthly bill including energy charges. LT II (C) and LT IV categories) Whenever the average PF is less than 0.83 0.900 0. after universal rounding off Prompt Payment Discount A prompt payment discount of one percent on the monthly bill (excluding Taxes and Duties) shall be available to the consumers if the bills are paid within a period of 7 working days from the date of issue of the bill..894 0.864 0.85 0.9. Range of Power Factor 0.865 to 0.84 0.Case No..90 0.845 to 0.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Power Factor Penalty (Applicable for all HT categories. Delayed Payment Charges (DPC) In case the electricity bills are not paid within the due date mentioned on the bill. 1 2 3 4 5 6 7 8 9 10 .814 .854 0.81 .855 to 0..

as the case may be. the load factor rebate will be available only if the consumer has no arrears with RInfra-D. this incentive will be applicable to consumers where payment of arrears in instalments has been granted by RInfra-D. “the day of presentation of bill” or “the date of the bill” or "the date of issue of the bill". will not be excluded. in order to be eligible for the Load Factor incentive. Page 253 of 302 . However. and the same is being made as scheduled.75% on the energy charges for every percentage point increase in load factor from 75% to 85%. HT II and HT VI categories only.Interruption/non-supply to the extent of 60 hours in a 30 day month has been built in the scheme. The total rebate under this head will be subject to a ceiling of 15% of the energy charges for that consumer. etc. 1 2 3 Delay in Payment ( months) Payment after due date upto 3 months ( 0-3) Payment made after 3 months and before 6 months (3-6) Payment made after 6 months (>6) Interest Rate per annum (%) 12 15 18 Load Factor Incentive Consumers having load factor over 75% upto 85% will be entitled to a rebate of 0. and payment is made within seven days from the date of the bill.Case No. This incentive is limited to HT I. RInfra-D has to take a commercial decision on the issue of how to determine the time frame for which the payments should have been made as scheduled.No. of hrs during the month less planned load shedding hours*) * . For the purpose of computation of time limit for payment of bills.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period levied on the bill amount. Rate of Interest on Arrears The rate of interest chargeable on arrears will be as given below for payment of arrearsSr. Further. Consumers having a load factor over 85 % will be entitled to rebate of 1% on the energy charges for every percentage point increase in load factor from 85%. The Load Factor has been defined below: Load Factor = Consumption during the month in MU Maximum Consumption Possible during the month in MU Maximum consumption possible = Contract Demand (kVA) x Actual Power Factor x (Total no.

e. whichever is lesser. Security Deposit 1) Subject to the provisions of sub-section (5) of Section 47 of the Act. then the load factor incentive will not be payable in that month. For the purpose of determining the average billing. However. Supply at 100 kV a) In the event power is supplied at 100 kV. the action taken in such cases would be governed by the Supply Code. RInfra-D would require any person to whom supply of electricity has been sanctioned to deposit a security in accordance with the provisions of clause (a) of subsection (1) of Section 47 of the Electricity Act. 20/kVA/month only on extent of Stand-by demand component.Case No. load factor incentives would be applicable. 2003. 2) The amount of the security shall be an equivalent of the average of three months of billing or the billing cycle period. over the energy charges applicable for supply at 11 kV/22 kV/33 kV. then the Consumer shall be allowed a rebate of 2% of the monthly energy charges. only if the consumer’s demand exceeds the Contract Demand. In case any consumer exceeds the Contract Demand on more than three occasions in a calendar year. he will be billed at the appropriate Demand Charge rate for the Demand actually recorded and will be additionally charged at the rate of 150% of the prevailing Demand Charges (only for the excess Demand over the Contract Demand). Additional Demand Charges will be levied on such consumers on the Standby component. Additional Demand Charges for Consumers having Captive Power Plant For customers having Captive Power Plant (CPP). even if the maximum demand exceeds the contract demand in that duration. and not on the entire Contract Demand.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period In case the billing demand exceeds the contract demand in any particular month. the additional demand charges would be at a rate of Rs. a consumer (availing Demand based Tariff) exceeds his Contract Demand. Penalty for exceeding Contract Demand In case. the average of the billing to the consumer for the last twelve months. (The billing demand definition excludes the demand recorded during the non-peak hours i. the consumer would be subjected to the penal charges for exceeding the contract demand and has to pay the applicable penal charges). or Page 254 of 302 . 22:00 hrs to 06:00 hrs and therefore.

9) RInfra-D shall pay interest on the amount of security deposited in cash (including cheque and demand draft) by the consumer at a rate equivalent to the bank rate of the Reserve Bank of India: Provided that such interest shall be paid where the amount of security deposited in cash under this Regulation 11 of Supply Code is equal to or more than Rupees Fifty. 4) RInfra-D shall re-calculate the amount of security based on the actual billing of the consumer once in each financial year. RInfra-D shall. load factor. and (ii) with no undisputed sums payable to RInfra-D under Section 56 of the Act may. diversity factor and number of working shifts of the consumer. 7) Upon termination of supply. shall be.Case No. RInfra-D shall be entitled to raise a demand for additional security on the consumer. shall be considered 3) Where RInfra-D requires security from a consumer at the time of commencement of service. deposit security. is higher than the security deposit of the consumer.00.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period in cases where supply has been provided for a shorter period. either by way of adjustment in the next bill or by way of a separate cheque payment within a period of thirty (30) days from the receipt of such request: Provided further that such refund shall not be required where the amount of refund does not exceed the higher of ten (10) per cent of the amount of security deposit required to be maintained by the consumer or Rupees Three Hundred. with intimation to the consumer.000) kilo-watt hours per month. the amount of such security shall be estimated by the Distribution Licensee based on the tariff category and contract demand/sanctioned load. at the option of such person. 5) Where the amount of security deposit maintained by the consumer is higher than the security required to be maintained under this Supply Code Regulation 11. after recovery of all amounts due. Page 255 of 302 . irrevocable letter of credit or unconditional bank guarantee issued by a scheduled commercial bank. if different from such person. if different from such person. refund the remainder amount held by the Distribution Licensee to the person who deposited the security. at the option of such consumer. 6) Where the amount of security re-calculated pursuant as above. by way of cash. RInfra-D shall refund the excess amount of such security deposit in a single payment: Provided that such refund shall be made upon request of the person who gave the security and with an intimation to the consumer. 8) A consumer . the average of the billing of such shorter period.(i) with a consumption of electricity of not less than one lakh (1. Provided that the consumer shall be given a time period of not less than thirty days to deposit the additional security pursuant to such demand.

b) 40% of the Contract Demand.Case No. unless otherwise provided in any general or specific Order of the Commission. will only be considered for determination of the Billing demand. Page 256 of 302 . Note: a) Demand registered during the period 0600 to 2200 Hrs. Sanctioned Load Sanctioned Load means load in Kilowatt (kW) mutually agreed between RInfra-D and the consumer Billing Demand (for LT categories): Monthly Billing Demand will be the higher of the following: a) 65% of the actual Maximum Demand recorded in the month during 0600 hours to 2200 hours. Contract Demand Contract Demand means demand in Kilowatt (kW) / Kilo –Volt Ampere (kVA).9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 10) Interest on cash security deposit shall be payable from the date of deposit by the consumer till the date of dispatch of the refund by RInfra-D. Definitions: Maximum Demand Maximum Demand in Kilowatts or Kilo-Volt-Amperes. Power Factor of 0. means twice the largest number of kilowatt-hours or kilo-Volt-Ampere-hours supplied and taken during any consecutive thirty minute blocks in that period. mutually agreed between RInfra-D and the consumer as entered into in the agreement or agreed through other written communication (For conversion of kW into kVA. in relation to any period shall.80 shall be considered).

c) 50% of the Contract Demand. the period specified in Clause (a) above will be reckoned from the month following the month in which the change of Contract Demand takes place. Billing Demand (for HT categories): Monthly Billing Demand will be the higher of the following: a) Actual Maximum Demand recorded in the month during 0600 hours to 2200 hours. Page 257 of 302 .9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period b) In case of change in Contract Demand. will only be considered for determination of the Billing demand. b) In case of change in Contract Demand. Note: a) Demand registered during the period 0600 to 2200 Hrs. the period specified in Clause (a) above will be reckoned from the month following the month in which the change of Contract Demand takes place. b) 75% of the highest billing demand recorded during preceding eleven months subject to limit of contract demand.Case No.

by its Order dated 1 September. Fuel Adjustment Costs (FAC) Charge as may be approved by the Commission from time to time shall be applicable to all categories of consumers and will be charged over and above the tariffs on the basis of FAC formula specified by the Commission and computed on a half-yearly basis.9 of 2013. 3. has determined. 5. as on 1 September. or any modifications thereof as may have been already agreed upon. 4. 2005 in force (i. Tariffs are subject to revision and/or surcharge that may be levied by RInfra-D from time to time as per the directives of the Commission.e. subject to conformity with the prevalent Supply Code. RInfra-D reserves the right to measure the Maximum Demand on any period shorter than 30 minutes period of maximum use. 2014) The Maharashtra Electricity Regulatory Commission.Case No. 2013 in Case No. the figures of Energy Charge relate to Rupees per unit (kWh) charge for energy consumed during the month. 2013) and directions. 7.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period ANNEXURE II (B) RELIANCE INFRASTRUCTURE LIMITED SCHEDULE OF ELECTRICITY TARIFFS (With Effect from 1 April. Tax on Sale of Electricity (ToSE) and other charges as levied by Government or other competent authorities and the same. Unless specifically stated to the contrary. 2003 and all other powers enabling it in this behalf. in exercise of the powers vested in it under Section 61 and Section 62 of the Electricity Act. in cases where RInfra-D considers that there are considerable load fluctuations in operation 6. if any that may be issued by the Commission from time to time. 2. will be payable by the consumers in addition to the charges levied as per the tariffs hereunder. The tariffs are subject to the provisions of the MERC (Electricity Supply Code and Other Conditions of Supply) Regulation. The tariffs are applicable for supply at one point only. Page 258 of 302 . These tariffs supersede all tariffs so far in force including in the case where any agreement provides specifically for continuance of old agreemental tariff. 2014 General 1. 8. the tariff for supply of Electricity by Reliance Infrastructure Limited – Distribution Business’ (RInfra-D) for various classes of consumers as applicable from 1 April. The tariffs are exclusive of Electricity Duty..

Page 259 of 302 .Below Poverty Line Applicability MERC Order for RInfra-D for MYT for Second Control Period Residential consumers who have a sanctioned load of upto and less than 0. i. mosques. Gardens or any other portion of the premises that may be let out for consideration or used for commercial activities would be charged at LT-II tariff as applicable.Effective from 1 April. Rate Schedule .I Residential (Single Phase) Applicability Electricity used at Low/Medium Voltage for operating various appliances used for purposes like lighting.e. 5 per month 1. gurudwaras. 2014 to 31 March. The applicability of Below Poverty Line (BPL) category will have to be assessed at the end of each financial year. 30 units per month. pumping in the following places: a) Private residential premises. cooking. will be considered in BPL Category.9 of 2013 LOW TENSION (LT) TARIFF LT I . entertainment/leisure.20 Fixed/Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs. etc.1 kW and consumption between 1 to 30 units (on pro rata basis of 1 unit/day) in the first billing month.Case No. heating. churches. In case any BPL consumer has consumed more than 360 units in the previous financial year. then he cannot be classified under BPL category. Similarly. b) Premises exclusively used for worship such as temples. and who have consumed less than 360 units per annum in the previous financial year.1 kW. 2015 (FY 2014-15) Consumption Slab ( kWh) BPL Category Rs. cooling. the classification of BPL consumers who have been added during the previous year would be assessed on a pro-rata basis. washing/cleaning. be considered under the LT-I residential category. Once a consumer is classified under the LT-I category.24 0../kWh) 0. The categorisation of such BPL consumers will be reassessed at the end of the financial year. All the new consumers subsequently added in any month with sanctioned load of upto and less than 0./kWh) (Rs. on a pro-rata basis. then the consumer will henceforth.22 Regulatory Asset Charge LT. Provided that Halls.

58 4./kWh) Regulatory Asset Charge (Rs.11 3. 100 per month will be levied on residential consumers availing 3 phase supply.24 Energy Charge (Rs.86 1.36 6. e) Other type of Hostels. Additional Fixed Charge of Rs. Working Women Hostels. Handicap or Mentally deranged persons (ii) Remand Homes (iii) Dharamshalas.Effective from 1 April.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period c) All Students Hostels affiliated to Educational Institutions.36 0. such as Students (Girls) Hostels. Doctors. f) Telephone booth owned/operated by handicapped person subject to verification and confirmation by RInfra’s concerned Zonal Chief Engineer./kWh) 2. Professional Engineers. 100 per 10 kW load or part thereof above 10 kW load shall be payable. 100 per month$$ Rs. subject to verification and confirmation by RInfra’s concerned Zonal Chief Engineer.17 Note: a) $$ : Above fixed charges are for single phase connections.24 1. Chartered Accountants. etc. in furtherance of their professional activity in their residences but shall not include Nursing Homes and any Surgical Wards or Hospitals.24 1.24 1. Rate Schedule . g) Residential premises used by professionals like Lawyers. etc.74 0... 2014 to 31 March. Fixed charge of Rs. like (i) Homes/Hostels for Destitute. 75 per month$$ Fixed/Demand Charge Wheeling Charge (Rs/kWh) 1. 2015 (FY 2014-15) Consumption Slab ( kWh) 0-100 units 101 – 300 units 301 – 500 units Above 500 units (balance units) Rs.Case No. d) All Ladies Hostels.57 0. 40 per month$$ Rs. LT II: Low Tension – Non-Residential or Commercial Applicability Page 260 of 302 . etc.

including Shopping malls. Meeting Halls and Recreation places.24 Fixed/Demand Charge Wheeling Charge (Rs/kWh) 1. washing/cleaning.50 0. c) Combined lighting and power services for Entertainment including film studios.31 1. d) Electricity used for the external illumination of monumental/historical/heritage buildings approved by MTDC. Page 261 of 302 .Case No. 2014 to 31 March.24 1.75 Note: a) The ToD tariff is available to LT-II (b) and (c) category. Commercial and Business premises.II (a) having ToD meter installed.00 1.47 7. pumping in following places: a) Non-Residential.76 1. cinemas and theatres. b) All Educational Institutions. and optionally available to LT.24 Energy Charge (Rs.03 1. Hospitality. 250 per month Rs.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Electricity used at Low/Medium Voltage in all non-residential. Leisure. heating. cooking. 200 per kVA per month 1.00 -0. 2015 (FY 2014-15) Consumption Slab ( kWh) (a) 0-20 kW (b) > 20 kW and ≤ 50 kW (c ) > 50 kW Rs. Rate Schedule .00 0. entertainment/leisure.39 TOD Tariffs (in addition to above base tariffs) 0600 to 0900 hours 0900 to 1200 hours 1200 to 1800 hours 1800 to 2200 hours 2200 to 0600 hours 0. including multiplexes./kWh) Regulatory Asset Charge (Rs. non-industrial premises and/or commercial premises for commercial consumption meant for operating various appliances used for purposes such as lighting. Hospitals and Dispensaries. cooling.Effective from 1 April./kWh) 5.26 7.

Industrial upto 20 kW Applicability Electricity used at Low/Medium Voltage in premises for purpose of manufacturing. heating/cooling. 250 per month 1.in addition to above base tariffs) 0600 to 0900 hours 0900 to 1200 hours 1200 to 1800 hours 1800 to 2200 hours 2200 to 0600 hours 0. and having sanctioned load greater than 20 kW (26. This consumer category also includes IT industry and IT enabled services (as defined in the Government of Maharashtra Policy).50 0.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period LT III: LT.Effective from 1 April.51 Regulatory Asset Charge (Rs. 2014 to 31 March.. LT IV: LT– Industrial above 20 kW load Applicability Electricity used at Low/Medium Voltage in premises for purpose of manufacturing including that used within these premises for general lighting.24 Fixed/Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs. heating/cooling.00 -0. having a sanctioned load upto and including 20 kW (26./kWh) 1.8 HP). including that used within these premises for general lighting.Case No. 2015 (FY 2014-15) Consumption Slab ( kWh) 0-20 kW Rs. etc.III having ToD meter installed.75 Note: a) The ToD tariff is optionally available to LT.04 TOD Tariffs ( Optional . /kWh) 5. etc. Page 262 of 302 .00 1. This consumer category also includes IT industry and IT enabled services (as defined in the Government of Maharashtra Policy).00 0.8 HP). Rate Schedule .

multiplexes.00 TOD Tariffs (in addition to above base tariffs) 0600 to 0900 hours 0900 to 1200 hours 1200 to 1800 hours 1800 to 2200 hours 2200 to 0600 hours 0.24 Fixed/Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs.Effective from 1 April.00 1. which shall be covered under LT-II category depending upon Sanctioned Load. 2014 to 31 March. hotels and other such entertainment/leisure establishments except those specifically covered under LT-II as well as electricity used for the external illuminations of monumental. neon signs at departmental stores. displays. historical/heritage buildings approved by MTDC. 2015 (FY 2014-15) Consumption Slab ( kWh) Above 20 kW Rs.Effective from 1 April. Rate Schedule .Case No.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Rate Schedule ./kWh) 1. hoardings and other conspicuous consumption such as external flood light. 2014 to 31 March./kWh) 5.Advertisements and Hoardings Applicability Electricity used for the purpose of advertisements.00 0.26 Regulatory Asset Charge (Rs. 2015 (FY 2014-15) Page 263 of 302 . 200 per kVA per month 1. clubs.75 LT V: LT . malls.50 0. theatres.00 -0.

24 13.76 1. shall not be under LT V tariff Category./kWh) All Units Rs. traffic lights. public fountains. 2015 (FY 2014-15) Consumption Slab ( kWh) Fixed / Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs. bus shelters./kWh) All Units Rs. public sanitary conveniences. Such usage of electricity shall be covered under the prevailing tariff of such shops or commercial premises.Effective from 1 April. traffic island.9 of 2013 Consumption Slab ( kWh) Fixed / Demand Charge MERC Order for RInfra-D for MYT for Second Control Period Wheeling Charge (Rs/kWh) Energy Charge(Rs. LT VI: LT. other such common public places irrespective of whether such facilities are being provided by the Government or the Municipality.08 Note  Street Lightings having ‘Automatic Timers’ for switching On/Off the street lights would be levied Demand Charges on lower of the following– a) 50 percent of ‘Contract Demand’ or Page 264 of 302 . 2014 to 31 March. 400 per month 1. that is used for the purpose of indicating/displaying the name and other details of the shops or Commercial premises. or Port Trust or other private parties.24 5. for which electric supply is rendered. Rate Schedule .31 Note a) The electricity. lighting in public gardens./kWh) Regulatory Asset Charge (Rs.Case No./kWh) Regulatory Asset Charge (Rs.76 2. 200 per kVA per month 1.Street Lights Applicability Electricity used at Low/Medium Voltage for purpose of public street lighting. police chowkies.

46 Note : In case of LT VII (B) the Additional fixed charges of Rs.Case No. Christmas.26 Regulatory Asset Charge (Rs. LT VIII: LT. 200 per connection per month Rs. film shooting.Temporary Supply Others (TSO) Electricity used at Low/Medium Voltage on a temporary basis for any construction work. and electricity used at low/medium voltage on an emergency basis for purpose of fire fighting activity by the fire department in residential/other premises..9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period b) Actual ‘Recorded Demand’ LT VII: LT-Temporary Supply Applicability LT VII (A) – Temporary Supply Religious (TSR) Electricity supplied at Low/Medium Voltage for temporary purposes during public religious functions like Ganesh Utsav. 200 per connection month 1. Eid. Ambedkar Jayanti. and any activity not covered under tariff LT VII (A). or areas where community prayers are held. Ram Lila. etc. and in Page 265 of 302 . 150 per 10 kW load or part thereof above 10 kW load shall be payable.85 1. LT VII (B) .Crematorium and Burial Grounds Applicability Electricity used at Low/Medium Voltage in Crematorium and Burial Grounds for all purposes including lighting.76 2. Guru Nanak Jayanti. Diwali.24 14. etc. 2015 (FY 2014-15) Consumption Slab (kWh) Fixed/Demand Charge Wheeling Charge (Rs/kWh) Energy Charge ( Rs. marriages. decorative lighting for exhibitions. Navaratri. and will be applicable only to the portion catering to such activities. Rate Schedule . circus./kWh) 4. 2014 to 31 March.24 0. Moharam.Effective from 1 April./kWh) LT VII (A) – All Units LT VII (B) – All Units Rs.

24 Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs./kWh) 3./kWh) 0.Effective from 1 April. then a separate meter will have to be provided for the same.61 Regulatory Asset Charge (Rs. and the consumption in this meter will be chargeable under LT-II Commercial rates as applicable.28 Page 266 of 302 . 2015 (FY 2014-15) Consumption Slab ( kWh) All Units Rs 20 per HP per month 1.Effective from 1 April. 2015 (FY 2014-15) Consumption Slab (kWh) Fixed/Demand Charge Wheeling Charge (Rs/kWh) Energy Charge ( Rs.LT. 200 per connection per month 1. Rate Schedule ./kWh) All Units Rs. 2014 to 31 March.24 0.Agriculture Applicability Electricity used at Low/Medium Voltage by LT agricultural consumers for motive power loads exclusively used for agricultural purposes./kWh) 0.77 LT IX .76 Regulatory Asset Charge (Rs.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period case part of the area is being used for other commercial purposes. Rate Schedule .Case No. 2014 to 31 March.

Prisons. Courts.Public Services Applicability MERC Order for RInfra-D for MYT for Second Control Period This Tariff shall be applicable to Educational Institutions. pathology laboratories.00 0.49 1. Post Offices.24 Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs.00 1. Police Stations.Effective from 1 April.9 of 2013 LT X . Jails./kWh) Regulatory Asset Charge 5. primary health care centres. State transport establishments. Hospitals. Public libraries and Reading rooms. Sports Club / Health Club / Gymnasium / Swimming Pool attached to the Educational Institution / Hospital provided said Sports Club / Health Club / Gymnasium / Swimming Pool is situated in the same premises and is exclusively meant for the students / patients of such Educational Institutions and Hospitals. Airports./kWh) (Rs. 2014 to 31 March. Defence establishments (army. Railway except traction (shops on the platforms/railway station/bus stands will be billed under Commercial category as per the respective slab). 2015 (FY 2014-15) Consumption Slab ( kWh) All Units Rs 250 per month 1.75 Page 267 of 302 . Rate Schedule . Fire Service Stations. navy and air-force).04 TOD Tariffs (in addition to above base tariffs) 0600 to 0900 hours 0900 to 1200 hours 1200 to 1800 hours 1800 to 2200 hours 2200 to 0600 hours 0. Spiritual Organisations which are service oriented.50 0.00 -0. dispensaries.Case No. Railway and State Transport Workshops.

Effective from 1 April./kWh) 5.00 0.Case No.75 Page 268 of 302 .00 1.00 TOD Tariffs (in addition to above base tariffs) 0600 to 0900 hours 0900 to 1200 hours 1200 to 1800 hours 1800 to 2200 hours 2200 to 0600 hours 0.86 Regulatory Asset Charge (Rs. taking 3-phase electricity supply at High Voltage. Rate Schedule . 2014 to 31 March.64 Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs.50 0.00 -0. 2015 (FY 2014-15) Consumption Slab ( kWh) All Units Rs 200 per kVA per month 0. This Tariff shall also be applicable to IT Industry & IT enabled services (as defined in the Government of Maharashtra policy).TARIFF HT I: HT – Industry Applicability This category includes consumers taking 3-phase electricity supply at High Voltage for purpose of manufacturing./kWh) 1.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period HIGH TENSION (HT) .

LT II.23 TOD Tariffs (in addition to above base tariffs) 0600 to 0900 hours 0900 to 1200 hours 1200 to 1800 hours 1800 to 2200 hours 2200 to 0600 hours 0. Shopping Malls.75 Page 269 of 302 .9 of 2013 HT II: HT.36 Regulatory Asset Charge (Rs.64 Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs.00 -0. This category also includes consumers taking electricity supply at High Voltage for commercial purposes./kWh) 1.50 0. 2015 (FY 2014-15) Consumption Slab ( kWh) All Units Rs 200 per kVA per month 0.Commercial Applicability MERC Order for RInfra-D for MYT for Second Control Period This category includes consumers of electricity such as all Educational Institutions.Case No. These downstream entities will pay appropriate tariff as applicable as per RInfra Tariff Schedule i. including multiplexes. 2014 to 31 March./kWh) 7. cinemas and theatres. including Hotels. film studios.e. Rate Schedule .Effective from 1 April.00 0. all Hospitals taking supply at High Voltage.00 1. The Consumers belonging to HT II requiring a single point supply for the purpose of downstream consumption by separately identifiable entities will have to either operate through a franchisee route or such entities will have to take individual connections under relevant category.

2015 (FY 2014-15) Consumption Slab ( kWh) All Units Rs 200 per kVA per month 0. circus. 2014 to 31 March.91 HT IV. decorative lighting for exhibitions.69 Page 270 of 302 . film shooting./kWh) 0. This category also includes electricity supplied at High Voltage for temporary purposes during public religious functions like Ganesh Utsav. 200 per connection per month Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs. Rate Schedule .Temporary Supply Applicability Electricity used at High Voltage on a temporary basis of supply for any construction work.36 1. 2014 to 31 March.64 Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs. Such individual dwellings will pay appropriate tariff LT I: LT. Eid. Ram Lila.Group Housing Society Applicability This category includes Group Housing Societies taking single point electricity supply at High Voltage for consumption by individual dwellings. marriages. Diwali. Christmas./kWh) Regulatory Asset Charge (Rs.HT . Moharam. etc.Effective from 1 April. etc./kWh) 5. Guru Nanak Jayanti.Case No.Residential as per RInfra-D Tariff Schedule in force.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period HT III: HT. or areas where community prayers are held. Rate Schedule .26 Regulatory Asset Charge (Rs.Effective from 1 April.64 10. Ambedkar Jayanti./kWh) 0. 2015 (FY 2014-15) Consumption Slab ( kWh) All Units Rs. Navaratri.

Public Services Applicability This Tariff shall be applicable to educational institutions. Sports Club / Health Club / Gymnasium / Swimming Pool attached to the Educational Institution / Hospital provided said Sports Club / Health Club / Gymnasium / Swimming Pool is situated in the same premises and is exclusively meant for the students / patients of such Educational Institutions and Hospitals.6kV All Units Rs. Jails.61 Regulatory Asset Charge (Rs. pathology laboratories./kWh) 100/33/22/11/6. hospitals.6 kV to Railways including Metro and Monorail./kWh) 6. Defence establishments (army.Case No.Effective from 1 April. Fire Service Stations.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period HT V: HT– Railways Applicability Applicable to electricity supply at 100 kV/33 kV/ 22 kV/11 kV/6. 2015 (FY 2014-15) Consumption Slab ( kWh) All Units Rs 200 per kVA 0. 200 per kVA per month 0.61 1. Spiritual Organisations which are service oriented. Rate Schedule .12 Page 271 of 302 . Airports./kWh) 1. Prisons. Public libraries and Reading rooms. dispensaries.Effective from 1 April. 2014 to 31 March. Rate Schedule ./kWh) Regulatory Asset Charge (Rs. 2015 (FY 2014-15) Consumption Slab ( kWh) Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs. State transport establishments. Railway and State Transport Workshops. 2014 to 31 March. navy and air force).12 HT VI . primary health care centres. Post Offices.64 6.64 Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs. Police Stations. Railway except traction (shops on the platforms/railway station/bus stands will be billed under Commercial category as per the respective slab). Courts.

com.Case No.00 -0.00 1. 2011.4 to 13./kWh) TOD Tariffs (in addition to above base tariffs) 0600 to 0900 hours 0900 to 1200 hours 1200 to 1800 hours 1800 to 2200 hours 2200 to 0600 hours 0.00 0.9 of the MERC MYT Regulations. In case of any variation in the fuel prices and power purchase prices with respect to these levels.50 0. RInfra-D shall pass on adjustments.rinfra.75 MISCELLANEOUS AND GENERAL CHARGES Fuel Adjustment Cost (FAC) Component of Z factor Charge The FAC Component of Z factor charge will be determined based on the approved Formula and relevant directions. The details of applicable ZFAC for each month shall be available on RInfra website www. due to changes in the cost of power procured due to change in fuel cost. as specified in Regulations 13. as may be given by the Commission from time to time and will be applicable to all consumer categories for their entire consumption. through the Fuel Adjustment Cost (FAC) component of Z-factor Charge./kWh) Regulatory Asset Charge (Rs. Page 272 of 302 .9 of 2013 Consumption Slab ( kWh) per month MERC Order for RInfra-D for MYT for Second Control Period Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs.

shall be stated in the bill. FAC. A copy of the said resolution / Order shall be made available on the website www. an incentive shall be given at the rate of the following percentages of the amount of the monthly bill including energy charges.96 0.Case No. reliability charges. the rate and the reference number of the Government Resolution/ Order vide which the Electricity Duty and Tax on Sale of Electricity is made effective.975 to 0.000 Power Factor Level 0. LT II (B).974 0. after universal rounding off Page 273 of 302 .995 to 1.95.964 0.994 0.955 to 0.985 to 0. Square Root of the summation of the squares of kWh and RkVAh ) Power Factor Incentive (Applicable for all HT categories. However.com Power Factor Calculation Wherever.951 to 0. 1 2 3 4 5 6 Range of Power Factor 0.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Electricity Duty and Tax on Sale of Electricity The electricity duty and Tax on Sale of Electricity will be charged in addition to charges levied as per the tariffs mentioned hereunder (as approved by the Commission) as per the Government guidelines from time to time.e.95 0. but excluding Taxes and Duties: Sl.99 1. the following method for calculating the average power factor during the billing period shall be adoptedAverage Power Factor = Total(kWH ) Total(kVAh) = Wherein the kVAh is  (kWh)   ( RkVAh) 2 2 (i. and Fixed/Demand Charges.984 0. the average power factor measurement is not possible through the installed meter.965 to 0.00 Incentive 0% 1% 2% 3% 5% 7% Note: PF to be measured/computed upto 3 decimals. LT II (C) and LT IV categories) Whenever the average power factor is more than 0.rinfra.97 0.98 0.954 0.

90 0.875 to 0. delayed payment charges of 2 percent on the total electricity bill (including Taxes and Duties) shall be levied on the bill amount.885 to 0.83 0.9.Case No.824 0.864 0.895 to 0..865 to 0. Range of Power Factor 0.845 to 0.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Power Factor Penalty (Applicable for all HT categories.81 .825 to 0.. 1 2 3 4 5 6 7 8 9 10 .900 0. Delayed Payment Charges (DPC) In case the electricity bills are not paid within the due date mentioned on the bill. LT II (C) and LT IV categories) Whenever the average PF is less than 0.894 0. “the Page 274 of 302 .814 . Penalty 0% 2% 3% 4% 5% 6% 7% 8% 9% 10% .85 0.815 to 0..89 0.835 to 0.88 0..84 0..874 0.884 0. LT II (B). penal charges shall be levied at the rate of the following percentages of the amount of the monthly bill including energy charges..87 0..855 to 0..834 0.805 to 0. FAC.854 0. For the purpose of computation of time limit for payment of bills. after universal rounding off Prompt Payment Discount A prompt payment discount of one percent on the monthly bill (excluding Taxes and Duties) shall be available to the consumers if the bills are paid within a period of 7 working days from the date of issue of the bill.86 0.82 0. Power Factor Level 0. Note: PF to be measured/computed upto 3 decimals. and Fixed/Demand Charges.844 0. reliability charges. but excluding Taxes and Duties: Sl.

Page 275 of 302 . HT II and HT VI categories only. However. the load factor rebate will be available only if the consumer has no arrears with RInfra-D. in order to be eligible for the Load Factor incentive. Consumers having a load factor over 85 % will be entitled to rebate of 1% on the energy charges for every percentage point increase in load factor from 85%. of hrs during the month less planned load shedding hours*) * . 1 2 3 Delay in Payment ( months) Payment after due date upto 3 months ( 0-3) Payment made after 3 months and before 6 months (3-6) Payment made after 6 months (>6) Interest Rate per annum (%) 12 15 18 Load Factor Incentive Consumers having load factor over 75% upto 85% will be entitled to a rebate of 0.No. and payment is made within seven days from the date of the bill.Interruption/non-supply to the extent of 60 hours in a 30 day month has been built in the scheme. The total rebate under this head will be subject to a ceiling of 15% of the energy charges for that consumer. The Load Factor has been defined below: Load Factor = Consumption during the month in MU Maximum Consumption Possible during the month in MU Maximum consumption possible = Contract Demand (kVA) x Actual Power Factor x (Total no. This incentive is limited to HT I. as the case may be. etc. and the same is being made as scheduled. Further. Rate of Interest on Arrears The rate of interest chargeable on arrears will be as given below for payment of arrearsSr. RInfra-D has to take a commercial decision on the issue of how to determine the time frame for which the payments should have been made as scheduled. this incentive will be applicable to consumers where payment of arrears in instalments has been granted by RInfra-D.Case No.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period day of presentation of bill” or “the date of the bill” or "the date of issue of the bill".75% on the energy charges for every percentage point increase in load factor from 75% to 85%. will not be excluded.

he will be billed at the appropriate Demand Charge rate for the Demand actually recorded and will be additionally charged at the rate of 150% of the prevailing Demand Charges (only for the excess Demand over the Contract Demand).9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period In case the billing demand exceeds the contract demand in any particular month. only if the consumer’s demand exceeds the Contract Demand. over the energy charges applicable for supply at 11 kV/22 kV/33 kV. even if the maximum demand exceeds the contract demand in that duration. RInfra-D would require any person to whom supply of electricity has been sanctioned to deposit a security in accordance with the provisions of clause (a) of subsection (1) of Section 47 of the Electricity Act. For the purpose of determining the average billing. the action taken in such cases would be governed by the Supply Code. the additional demand charges would be at a rate of Rs. Additional Demand Charges for Consumers having Captive Power Plant For customers having Captive Power Plant (CPP). and not on the entire Contract Demand. Security Deposit 1) Subject to the provisions of sub-section (5) of Section 47 of the Act. the average of the billing to the consumer for the last twelve months. However. (The billing demand definition excludes the demand recorded during the non-peak hours i. 2) The amount of the security shall be an equivalent of the average of three months of billing or the billing cycle period. 2003. the consumer would be subjected to the penal charges for exceeding the contract demand and has to pay the applicable penal charges). In case any consumer exceeds the Contract Demand on more than three occasions in a calendar year. a consumer (availing Demand based Tariff) exceeds his Contract Demand. Additional Demand Charges will be levied on such consumers on the Standby component.e. then the Consumer shall be allowed a rebate of 2% of the monthly energy charges. then the load factor incentive will not be payable in that month. 20/kVA/month only on extent of Stand-by demand component.Case No. Supply at 100 kV a) In the event power is supplied at 100 kV. or Page 276 of 302 . load factor incentives would be applicable. Penalty for exceeding Contract Demand In case. whichever is lesser. 22:00 hrs to 06:00 hrs and therefore.

00. with intimation to the consumer. either by way of adjustment in the next bill or by way of a separate cheque payment within a period of thirty (30) days from the receipt of such request: Provided further that such refund shall not be required where the amount of refund does not exceed the higher of ten (10) per cent of the amount of security deposit required to be maintained by the consumer or Rupees Three Hundred. RInfra-D shall be entitled to raise a demand for additional security on the consumer. at the option of such consumer. and (ii) with no undisputed sums payable to RInfra-D under Section 56 of the Act may. at the option of such person. Page 277 of 302 . load factor. RInfra-D shall. if different from such person.(i) with a consumption of electricity of not less than one lakh (1. refund the remainder amount held by the Distribution Licensee to the person who deposited the security. by way of cash. if different from such person. the average of the billing of such shorter period. after recovery of all amounts due. the amount of such security shall be estimated by the Distribution Licensee based on the tariff category and contract demand/sanctioned load. irrevocable letter of credit or unconditional bank guarantee issued by a scheduled commercial bank.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period in cases where supply has been provided for a shorter period. shall be considered 3) Where RInfra-D requires security from a consumer at the time of commencement of service. 9) RInfra-D shall pay interest on the amount of security deposited in cash (including cheque and demand draft) by the consumer at a rate equivalent to the bank rate of the Reserve Bank of India: Provided that such interest shall be paid where the amount of security deposited in cash under this Regulation 11 of Supply Code is equal to or more than Rupees Fifty. RInfra-D shall refund the excess amount of such security deposit in a single payment: Provided that such refund shall be made upon request of the person who gave the security and with an intimation to the consumer.Case No. 5) Where the amount of security deposit maintained by the consumer is higher than the security required to be maintained under this Supply Code Regulation 11. 4) RInfra-D shall re-calculate the amount of security based on the actual billing of the consumer once in each financial year. 8) A consumer . is higher than the security deposit of the consumer. diversity factor and number of working shifts of the consumer. Provided that the consumer shall be given a time period of not less than thirty days to deposit the additional security pursuant to such demand.000) kilo-watt hours per month. 7) Upon termination of supply. shall be. deposit security. 6) Where the amount of security re-calculated pursuant as above.

Definitions: Maximum Demand Maximum Demand in Kilowatts or Kilo-Volt-Amperes. Contract Demand Contract Demand means demand in Kilowatt (kW) / Kilo –Volt Ampere (kVA).80 shall be considered). unless otherwise provided in any general or specific Order of the Commission. Power Factor of 0. in relation to any period shall. mutually agreed between RInfra-D and the consumer as entered into in the agreement or agreed through other written communication (For conversion of kW into kVA. Note: a) Demand registered during the period 0600 to 2200 Hrs.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 10) Interest on cash security deposit shall be payable from the date of deposit by the consumer till the date of dispatch of the refund by RInfra-D. will only be considered for determination of the Billing demand. means twice the largest number of kilowatt-hours or kilo-Volt-Ampere-hours supplied and taken during any consecutive thirty minute blocks in that period. Page 278 of 302 .Case No. b) 40% of the Contract Demand. Sanctioned Load Sanctioned Load means load in Kilowatt (kW) mutually agreed between RInfra-D and the consumer Billing Demand (for LT categories): Monthly Billing Demand will be the higher of the following: a) 65% of the actual Maximum Demand recorded in the month during 0600 hours to 2200 hours.

the period specified in Clause (a) above will be reckoned from the month following the month in which the change of Contract Demand takes place. Note: a) Demand registered during the period 0600 to 2200 Hrs. the period specified in Clause (a) above will be reckoned from the month following the month in which the change of Contract Demand takes place.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period b) In case of change in Contract Demand. Billing Demand (for HT categories): Monthly Billing Demand will be the higher of the following: a) Actual Maximum Demand recorded in the month during 0600 hours to 2200 hours. Page 279 of 302 . will only be considered for determination of the Billing demand. b) In case of change in Contract Demand.Case No. c) 50% of the Contract Demand. b) 75% of the highest billing demand recorded during preceding eleven months subject to limit of contract demand.

2015 General 1.e. 2013) and directions. in cases where RInfra-D considers that there are considerable load fluctuations in operation 6.9 of 2013. or any modifications thereof as may have been already agreed upon. will be payable by the consumers in addition to the charges levied as per the tariffs hereunder. Tax on Sale of Electricity (ToSE) and other charges as levied by Government or other competent authorities and the same. RInfra-D reserves the right to measure the Maximum Demand on any period shorter than 30 minutes period of maximum use. subject to conformity with the prevalent Supply Code. 3. 2003 and all other powers enabling it in this behalf.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period ANNEXURE II (C) RELIANCE INFRASTRUCTURE LIMITED SCHEDULE OF ELECTRICITY TARIFFS (With Effect from 1 April. 2013 in Case No. The tariffs are exclusive of Electricity Duty. Tariffs are subject to revision and/or surcharge that may be levied by RInfra-D from time to time as per the directives of the Commission. These tariffs supersede all tariffs so far in force including in the case where any agreement provides specifically for continuance of old agreemental tariff. the figures of Energy Charge relate to Rupees per unit (kWh) charge for energy consumed during the month.. 4. Unless specifically stated to the contrary. The tariffs are subject to the provisions of the MERC (Electricity Supply Code and Other Conditions of Supply) Regulation. The tariffs are applicable for supply at one point only. 2. 2005 in force (i. 8. if any that may be issued by the Commission from time to time. Fuel Adjustment Costs (FAC) Charge as may be approved by the Commission from time to time shall be applicable to all categories of consumers and will be charged over and above the tariffs on the basis of FAC formula specified by the Commission and computed on a half-yearly basis. 7.Case No. has determined. 2015) The Maharashtra Electricity Regulatory Commission. as on 1 September. by its Order dated 1 September. Page 280 of 302 . in exercise of the powers vested in it under Section 61 and Section 62 of the Electricity Act. the tariff for supply of Electricity by Reliance Infrastructure Limited – Distribution Business’ (RInfra-D) for various classes of consumers as applicable from 1 April. 5.

1 kW and consumption between 1 to 30 units (on pro rata basis of 1 unit/day) in the first billing month. 2016 (FY 2015-16) Consumption Slab ( kWh) BPL Category Rs. Rate Schedule .I Residential (Single Phase) Applicability Electricity used at Low/Medium Voltage for operating various appliances used for purposes like lighting./kWh) (Rs. 5 per month 1.. The applicability of Below Poverty Line (BPL) category will have to be assessed at the end of each financial year. etc. will be considered in BPL Category.e. In case any BPL consumer has consumed more than 360 units in the previous financial year. churches.27 Regulatory Asset Charge LT. then he cannot be classified under BPL category. mosques. gurudwaras.Effective from 1 April. b) Premises exclusively used for worship such as temples. Similarly.30 Fixed/Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs. the classification of BPL consumers who have been added during the previous year would be assessed on a pro-rata basis.1 kW. 30 units per month. and who have consumed less than 360 units per annum in the previous financial year. heating. washing/cleaning.Below Poverty Line Applicability MERC Order for RInfra-D for MYT for Second Control Period Residential consumers who have a sanctioned load of upto and less than 0. cooking./kWh) 0. pumping in the following places: a) Private residential premises. Provided that Halls. Once a consumer is classified under the LT-I category. be considered under the LT-I residential category. entertainment/leisure. cooling.Case No.27 0. Gardens or any other portion of the premises that may be let out for consideration or used for commercial activities would be charged at LT-II tariff as applicable. The categorisation of such BPL consumers will be reassessed at the end of the financial year. on a pro-rata basis. All the new consumers subsequently added in any month with sanctioned load of upto and less than 0.9 of 2013 LOW TENSION (LT) TARIFF LT I . 2015 to 31 March. i. then the consumer will henceforth. Page 281 of 302 .

etc. 2015 to 31 March. Fixed charge of Rs.27 Energy Charge (Rs./kWh) 2. Working Women Hostels. 100 per 10 kW load or part thereof above 10 kW load shall be payable. Handicap or Mentally deranged persons (ii) Remand Homes (iii) Dharamshalas. such as Students (Girls) Hostels. Doctors. etc. subject to verification and confirmation by RInfra’s concerned Zonal Chief Engineer.75 0. Additional Fixed Charge of Rs.Case No.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period c) All Students Hostels affiliated to Educational Institutions.Effective from 1 April. etc.56 0. 100 per month will be levied on residential consumers availing 3 phase supply.18 3./kWh) Regulatory Asset Charge (Rs.98 5. d) All Ladies Hostels. like (i) Homes/Hostels for Destitute. 2016 (FY 2015-16) Consumption Slab ( kWh) 0-100 units 101 – 300 units 301 – 500 units Above 500 units (balance units) Rs. Rate Schedule .27 1. Chartered Accountants. in furtherance of their professional activity in their residences but shall not include Nursing Homes and any Surgical Wards or Hospitals.27 1.03 3. 100 per month$$ Rs.. 75 per month$$ Fixed/Demand Charge Wheeling Charge (Rs/kWh) 1. e) Other type of Hostels. f) Telephone booth owned/operated by handicapped person subject to verification and confirmation by RInfra’s concerned Zonal Chief Engineer..27 1. g) Residential premises used by professionals like Lawyers.89 1. Professional Engineers.23 0. 40 per month$$ Rs.07 Note: a) $$ : Above fixed charges are for single phase connections. Page 282 of 302 .

73 5.27 Fixed/Demand Charge Wheeling Charge (Rs/kWh) 1. b) All Educational Institutions. Meeting Halls and Recreation places. Hospitals and Dispensaries.00 0. pumping in following places: a) Non-Residential. including Shopping malls. heating. Leisure. 200 per kVA per month 1.27 1.50 0. c) Combined lighting and power services for Entertainment including film studios. washing/cleaning. d) Electricity used for the external illumination of monumental/historical/heritage buildings approved by MTDC.84 1. 250 per month Rs.98 0./kWh) 3. cooking.00 1. cooling.01 1. Rate Schedule .22 TOD Tariffs (in addition to above base tariffs) 0600 to 0900 hours 0900 to 1200 hours 1200 to 1800 hours 1800 to 2200 hours 2200 to 0600 hours Note: 0. including multiplexes. Hospitality.27 Energy Charge (Rs.Effective from 1 April. cinemas and theatres.75 Page 283 of 302 .Case No.00 -0. 2016 (FY 2015-16) Consumption Slab ( kWh) (a) 0-20 kW (b) > 20 kW and ≤ 50 kW (c ) > 50 kW Rs./kWh) Regulatory Asset Charge (Rs. 2015 to 31 March.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period LT II: Low Tension – Non-Residential or Commercial Applicability Electricity used at Low/Medium Voltage in all non-residential. entertainment/leisure.73 4. Commercial and Business premises. non-industrial premises and/or commercial premises for commercial consumption meant for operating various appliances used for purposes such as lighting.

75 Note: a) The ToD tariff is optionally available to LT.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period a) The ToD tariff is available to LT-II (b) and (c) category. including that used within these premises for general lighting.. 2015 to 31 March./kWh) 0.II (a) having ToD meter installed.III having ToD meter installed.50 0.48 Regulatory Asset Charge (Rs. and optionally available to LT.27 Fixed/Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs. Rate Schedule .Industrial upto 20 kW Applicability Electricity used at Low/Medium Voltage in premises for purpose of manufacturing. heating/cooling.Effective from 1 April. Page 284 of 302 .97 TOD Tariffs ( Optional .Case No.00 -0. 2016 (FY 2015-16) Consumption Slab ( kWh) 0-20 kW Rs. etc. 250 per month 1. /kWh) 4. This consumer category also includes IT industry and IT enabled services (as defined in the Government of Maharashtra Policy). having a sanctioned load upto and including 20 kW (26.in addition to above base tariffs) 0600 to 0900 hours 0900 to 1200 hours 1200 to 1800 hours 1800 to 2200 hours 2200 to 0600 hours 0.8 HP).00 0. LT III: LT.00 1.

2016 (FY 2015-16) Consumption Slab ( kWh) Above 20 kW Rs.93 TOD Tariffs (in addition to above base tariffs) 0600 to 0900 hours 0900 to 1200 hours 1200 to 1800 hours 1800 to 2200 hours 2200 to 0600 hours 0.Effective from 1 April. hoardings and other conspicuous consumption such as external flood light.75 LT V: LT . 2015 to 31 March.00 1. 200 per kVA per month 1.00 0. heating/cooling./kWh) 4. displays.Advertisements and Hoardings Applicability Electricity used for the purpose of advertisements./kWh) 0. and having sanctioned load greater than 20 kW (26. etc. Page 285 of 302 . Rate Schedule . malls.50 0.23 Regulatory Asset Charge (Rs.Case No. multiplexes.27 Fixed/Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs.00 -0. This consumer category also includes IT industry and IT enabled services (as defined in the Government of Maharashtra Policy).9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period LT IV: LT– Industrial above 20 kW load Applicability Electricity used at Low/Medium Voltage in premises for purpose of manufacturing including that used within these premises for general lighting. neon signs at departmental stores.8 HP).

73 2. traffic island. Page 286 of 302 . clubs. historical/heritage buildings approved by MTDC. other such common public places irrespective of whether such facilities are being provided by the Government or the Municipality.Effective from 1 April./kWh) All Units Rs.Street Lights Applicability Electricity used at Low/Medium Voltage for purpose of public street lighting./kWh) Regulatory Asset Charge (Rs. hotels and other such entertainment/leisure establishments except those specifically covered under LT-II as well as electricity used for the external illuminations of monumental.19 Note a) The electricity. traffic lights. public fountains. 2016 (FY 2015-16) Consumption Slab ( kWh) Fixed / Demand Charge Wheeling Charge (Rs/kWh) Energy Charge(Rs. lighting in public gardens. 400 per month 1. for which electric supply is rendered. 2015 to 31 March.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period theatres.Case No. Such usage of electricity shall be covered under the prevailing tariff of such shops or commercial premises. or Port Trust or other private parties. shall not be under LT V tariff Category.27 11. bus shelters. public sanitary conveniences. which shall be covered under LT-II category depending upon Sanctioned Load. Rate Schedule . police chowkies. LT VI: LT. that is used for the purpose of indicating/displaying the name and other details of the shops or Commercial premises.

and electricity used at low/medium voltage on an emergency basis for purpose of fire fighting activity by the fire department in residential/other premises. film shooting. 2015 to 31 March.Effective from 1 April. marriages.Case No. Guru Nanak Jayanti. Ambedkar Jayanti. 2016 (FY 2015-16) Consumption Slab (kWh) Fixed/Demand Charge Wheeling Charge (Rs/kWh) Energy Charge ( Rs. LT VII (B) . and any activity not covered under tariff LT VII (A).Effective from 1 April. 2015 to 31 March. decorative lighting for exhibitions. etc. Navaratri.. or areas where community prayers are held.27 4. Rate Schedule . Diwali. Eid. circus./kWh) Page 287 of 302 .93 Note  Street Lightings having ‘Automatic Timers’ for switching On/Off the street lights would be levied Demand Charges on lower of the following– a) 50 percent of ‘Contract Demand’ or b) Actual ‘Recorded Demand’ LT VII: LT-Temporary Supply Applicability LT VII (A) – Temporary Supply Religious (TSR) Electricity supplied at Low/Medium Voltage for temporary purposes during public religious functions like Ganesh Utsav.23 0. Ram Lila. Christmas. etc./kWh) Regulatory Asset Charge (Rs./kWh) All Units Rs. 200 per kVA per month 1.Temporary Supply Others (TSO) Electricity used at Low/Medium Voltage on a temporary basis for any construction work. 2016 (FY 2015-16) Consumption Slab ( kWh) Fixed / Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs. Moharam.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Rate Schedule ./kWh) Regulatory Asset Charge (Rs.

73 Regulatory Asset Charge (Rs.73 2./kWh) All Units Rs./kWh) 3. Rate Schedule ./kWh) LT VII (A) – All Units LT VII (B) – All Units Rs.9 of 2013 Consumption Slab (kWh) MERC Order for RInfra-D for MYT for Second Control Period Fixed/Demand Charge Wheeling Charge (Rs/kWh) Energy Charge ( Rs. and will be applicable only to the portion catering to such activities. LT VIII: LT. and the consumption in this meter will be chargeable under LT-II Commercial rates as applicable.84 1. and in case part of the area is being used for other commercial purposes.Case No. 2016 (FY 2015-16) Consumption Slab (kWh) Fixed/Demand Charge Wheeling Charge (Rs/kWh) Energy Charge ( Rs.27 12. 200 per connection month 1.Effective from 1 April. 200 per connection per month Rs. then a separate meter will have to be provided for the same.LT. 2015 to 31 March./kWh) 3. 150 per 10 kW load or part thereof above 10 kW load shall be payable.27 0.36 Note : In case of LT VII (B) the Additional fixed charges of Rs.27 0. Page 288 of 302 .83 Regulatory Asset Charge (Rs. 200 per connection per month 1.Crematorium and Burial Grounds Applicability Electricity used at Low/Medium Voltage in Crematorium and Burial Grounds for all purposes including lighting.86 LT IX .Agriculture Applicability Electricity used at Low/Medium Voltage by LT agricultural consumers for motive power loads exclusively used for agricultural purposes.

Spiritual Organisations which are service oriented.Effective from 1 April.Public Services Applicability This Tariff shall be applicable to Educational Institutions. Post Offices. Hospitals. State transport establishments.73 Regulatory Asset Charge (Rs. Rate Schedule .Effective from 1 April.Case No./kWh) 0. Airports. navy and air-force). Sports Club / Health Club / Gymnasium / Swimming Pool attached to the Educational Institution / Hospital provided said Sports Club / Health Club / Gymnasium / Swimming Pool is situated in the same premises and is exclusively meant for the students / patients of such Educational Institutions and Hospitals. 2016 (FY 2015-16) Consumption Slab ( kWh) All Units Rs 250 per month 1.18 0. Jails./kWh) Regulatory Asset Charge 4. Fire Service Stations. Railway and State Transport Workshops. Public libraries and Reading rooms. 2016 (FY 2015-16) Consumption Slab ( kWh) All Units Rs 20 per HP per month 1.00 Page 289 of 302 . dispensaries. Courts. Railway except traction (shops on the platforms/railway station/bus stands will be billed under Commercial category as per the respective slab).92 TOD Tariffs (in addition to above base tariffs) 0600 to 0900 hours 0.27 Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs. 2015 to 31 March./kWh) (Rs./kWh) 0. pathology laboratories.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Rate Schedule .27 Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs.34 LT X . 2015 to 31 March. Police Stations. primary health care centres. Defence establishments (army. Prisons.

/kWh) 5.00 Page 290 of 302 .04 TOD Tariffs (in addition to above base tariffs) 0600 to 0900 0.55 Regulatory Asset Charge (Rs. 2016 (FY 2015-16) Consumption Slab ( kWh) All Units Rs 200 per kVA per month 0.Case No. Rate Schedule .65 Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs.00 1.00 -0.75 HIGH TENSION (HT) ./kWh) 1./kWh) Regulatory Asset Charge 0.Effective from 1 April.TARIFF HT I: HT – Industry Applicability This category includes consumers taking 3-phase electricity supply at High Voltage for purpose of manufacturing./kWh) (Rs. This Tariff shall also be applicable to IT Industry & IT enabled services (as defined in the Government of Maharashtra policy). 2015 to 31 March.9 of 2013 Consumption Slab ( kWh) 0900 to 1200 hours 1200 to 1800 hours 1800 to 2200 hours 2200 to 0600 hours MERC Order for RInfra-D for MYT for Second Control Period Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs. taking 3-phase electricity supply at High Voltage.50 0.

LT II. including Hotels.00 1. These downstream entities will pay appropriate tariff as applicable as per RInfra Tariff Schedule i./kWh) 0. cinemas and theatres.50 0. including multiplexes. Shopping Malls.00 -0.Commercial Applicability This category includes consumers of electricity such as all Educational Institutions.Case No.75 HT II: HT. all Hospitals taking supply at High Voltage. Page 291 of 302 . The Consumers belonging to HT II requiring a single point supply for the purpose of downstream consumption by separately identifiable entities will have to either operate through a franchisee route or such entities will have to take individual connections under relevant category.e./kWh) Regulatory Asset Charge (Rs.9 of 2013 Consumption Slab ( kWh) hours 0900 to 1200 hours 1200 to 1800 hours 1800 to 2200 hours 2200 to 0600 hours MERC Order for RInfra-D for MYT for Second Control Period Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs. This category also includes consumers taking electricity supply at High Voltage for commercial purposes. film studios.

75 HT III: HT.Residential as per RInfra-D Tariff Schedule in force.Group Housing Society Applicability This category includes Group Housing Societies taking single point electricity supply at High Voltage for consumption by individual dwellings. 2015 to 31 March. 2016 (FY 2015-16) Consumption Slab ( kWh) All Units Rs 200 per kVA per month 0. 2016 (FY 2015-16) Consumption Slab ( kWh) Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs./kWh) Page 292 of 302 .Case No.Effective from 1 April. 2015 to 31 March.17 TOD Tariffs (in addition to above base tariffs) 0600 to 0900 hours 0900 to 1200 hours 1200 to 1800 hours 1800 to 2200 hours 2200 to 0600 hours 0./kWh) 1.Effective from 1 April./kWh) 6.00 -0. Rate Schedule .65 Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs.30 Regulatory Asset Charge (Rs./kWh) Regulatory Asset Charge (Rs.00 0.50 0.00 1.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Rate Schedule . Such individual dwellings will pay appropriate tariff LT I: LT.

200 per connection per month Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs. Guru Nanak Jayanti. Ambedkar Jayanti. Christmas. 2015 to 31 March. film shooting. decorative lighting for exhibitions. Navaratri. etc.15 Regulatory Asset Charge (Rs. Ram Lila. This category also includes electricity supplied at High Voltage for temporary purposes during public religious functions like Ganesh Utsav.9 of 2013 Consumption Slab ( kWh) All Units MERC Order for RInfra-D for MYT for Second Control Period Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs. circus. marriages.Effective from 1 April.Temporary Supply Applicability Electricity used at High Voltage on a temporary basis of supply for any construction work./kWh) Regulatory Asset Charge (Rs.35 1.6 kV to Railways including Metro and Monorail.52 HT V: HT– Railways Applicability Applicable to electricity supply at 100 kV/33 kV/ 22 kV/11 kV/6. 2015 to 31 March./kWh) 0.HT . Rate Schedule . Moharam.65 8. 2016 (FY 2015-16) Page 293 of 302 .98 HT IV. Rate Schedule . Diwali. or areas where community prayers are held.Case No.65 5./kWh) Rs 200 per kVA per month 0. etc. Eid.Effective from 1 April./kWh) 0. 2016 (FY 2015-16) Consumption Slab ( kWh) All Units Rs.

Courts./kWh) 1.01 TOD Tariffs (in addition to above base tariffs) 0600 to 0900 hours 0900 to 1200 hours 1200 to 1800 0./kWh) Regulatory Asset Charge (Rs. 2016 (FY 2015-16) Consumption Slab ( kWh) All Units Rs 200 per kVA per month 0.6kV All Units Rs.65 5. Defence establishments (army.35 Regulatory Asset Charge (Rs.50 0.Effective from 1 April. Public libraries and Reading rooms.00 Page 294 of 302 . pathology laboratories.Case No. 2015 to 31 March. dispensaries.35 1. Railway except traction (shops on the platforms/railway station/bus stands will be billed under Commercial category as per the respective slab). Sports Club / Health Club / Gymnasium / Swimming Pool attached to the Educational Institution / Hospital provided said Sports Club / Health Club / Gymnasium / Swimming Pool is situated in the same premises and is exclusively meant for the students / patients of such Educational Institutions and Hospitals. primary health care centres. Spiritual Organisations which are service oriented. State transport establishments. Fire Service Stations. Airports. 200 per kVA per month 0. Police Stations. Railway and State Transport Workshops. navy and air force). Rate Schedule .00 0.Public Services Applicability This Tariff shall be applicable to educational institutions. Post Offices./kWh) 100/33/22/11/6./kWh) 5.65 Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs. hospitals. Jails.9 of 2013 Consumption Slab ( kWh) MERC Order for RInfra-D for MYT for Second Control Period Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs.01 HT VI . Prisons.

the rate and the reference number of the Government Resolution/ Order vide which the Electricity Duty and Tax on Sale of Electricity is made effective./kWh) Regulatory Asset Charge (Rs.rinfra.rinfra. as specified in Regulations 13.9 of 2013 Consumption Slab ( kWh) hours 1800 to 2200 hours 2200 to 0600 hours MERC Order for RInfra-D for MYT for Second Control Period Fixed/ Demand Charge Wheeling Charge (Rs/kWh) Energy Charge (Rs. due to changes in the cost of power procured due to change in fuel cost. through the Fuel Adjustment Cost (FAC) component of Z-factor Charge./kWh) 1.com. A copy of the said resolution / Order shall be made available on the website www.00 -0.9 of the MERC MYT Regulations. The details of applicable ZFAC for each month shall be available on RInfra website www. However.com Page 295 of 302 . In case of any variation in the fuel prices and power purchase prices with respect to these levels.4 to 13. 2011. Electricity Duty and Tax on Sale of Electricity The electricity duty and Tax on Sale of Electricity will be charged in addition to charges levied as per the tariffs mentioned hereunder (as approved by the Commission) as per the Government guidelines from time to time.75 MISCELLANEOUS AND GENERAL CHARGES Fuel Adjustment Cost (FAC) Component of Z factor Charge The FAC Component of Z factor charge will be determined based on the approved Formula and relevant directions. as may be given by the Commission from time to time and will be applicable to all consumer categories for their entire consumption. shall be stated in the bill.Case No. RInfra-D shall pass on adjustments.

955 to 0.985 to 0.995 to 1. but excluding Taxes and Duties: Sl.974 0. FAC.964 0.Case No. and Fixed/Demand Charges. the average power factor measurement is not possible through the installed meter. the following method for calculating the average power factor during the billing period shall be adopted- Average Power Factor = Total(kWH ) Total(kVAh) Wherein the kVAh is =  (kWh)   ( RkVAh) 2 2 (i. an incentive shall be given at the rate of the following percentages of the amount of the monthly bill including energy charges. 1 2 3 4 5 6 Range of Power Factor 0.98 0.00 Incentive 0% 1% 2% 3% 5% 7% Note: PF to be measured/computed upto 3 decimals.951 to 0.95.95 0.e.975 to 0.96 0.965 to 0. after universal rounding off Page 296 of 302 . LT II (C) and LT IV categories) Whenever the average power factor is more than 0. Square Root of the summation of the squares of kWh and RkVAh ) Power Factor Incentive (Applicable for all HT categories.994 0.97 0.000 Power Factor Level 0.99 1. reliability charges.954 0.984 0.9 of 2013 Power Factor Calculation MERC Order for RInfra-D for MYT for Second Control Period Wherever. LT II (B).

1 2 3 4 5 6 7 8 9 10 .9. FAC. Note: PF to be measured/computed upto 3 decimals.90 0.855 to 0.885 to 0. LT II (B).854 0.81 .815 to 0.89 0.86 0. penal charges shall be levied at the rate of the following percentages of the amount of the monthly bill including energy charges.85 0.875 to 0.864 0.805 to 0.83 0..84 0. after universal rounding off Prompt Payment Discount A prompt payment discount of one percent on the monthly bill (excluding Taxes and Duties) shall be available to the consumers if the bills are paid within a period of 7 working days from the date of issue of the bill. Delayed Payment Charges (DPC) In case the electricity bills are not paid within the due date mentioned on the bill.895 to 0.. LT II (C) and LT IV categories) Whenever the average PF is less than 0..884 0. Penalty 0% 2% 3% 4% 5% 6% 7% 8% 9% 10% . and Fixed/Demand Charges.844 0.825 to 0.87 0.835 to 0.814 ...894 0..865 to 0.834 0.82 0.88 0.Case No.824 0... Power Factor Level 0. Range of Power Factor 0.874 0.845 to 0. reliability charges.900 0. delayed payment charges of 2 percent on the total electricity bill (including Taxes and Duties) shall be Page 297 of 302 .9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period Power Factor Penalty (Applicable for all HT categories. but excluding Taxes and Duties: Sl.

and the same is being made as scheduled. Consumers having a load factor over 85 % will be entitled to rebate of 1% on the energy charges for every percentage point increase in load factor from 85%. Further. HT II and HT VI categories only. etc. This incentive is limited to HT I.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period levied on the bill amount.No. and payment is made within seven days from the date of the bill. as the case may be. this incentive will be applicable to consumers where payment of arrears in instalments has been granted by RInfra-D. However.Case No.Interruption/non-supply to the extent of 60 hours in a 30 day month has been built in the scheme. Page 298 of 302 . RInfra-D has to take a commercial decision on the issue of how to determine the time frame for which the payments should have been made as scheduled. Rate of Interest on Arrears The rate of interest chargeable on arrears will be as given below for payment of arrearsSr.75% on the energy charges for every percentage point increase in load factor from 75% to 85%. The Load Factor has been defined below: Load Factor = Consumption during the month in MU Maximum Consumption Possible during the month in MU Maximum consumption possible = Contract Demand (kVA) x Actual Power Factor x (Total no. For the purpose of computation of time limit for payment of bills. will not be excluded. of hrs during the month less planned load shedding hours*) * . in order to be eligible for the Load Factor incentive. The total rebate under this head will be subject to a ceiling of 15% of the energy charges for that consumer. the load factor rebate will be available only if the consumer has no arrears with RInfra-D. 1 2 3 Delay in Payment ( months) Payment after due date upto 3 months ( 0-3) Payment made after 3 months and before 6 months (3-6) Payment made after 6 months (>6) Interest Rate per annum (%) 12 15 18 Load Factor Incentive Consumers having load factor over 75% upto 85% will be entitled to a rebate of 0. “the day of presentation of bill” or “the date of the bill” or "the date of issue of the bill".

only if the consumer’s demand exceeds the Contract Demand. 22:00 hrs to 06:00 hrs and therefore. load factor incentives would be applicable. then the Consumer shall be allowed a rebate of 2% of the monthly energy charges. the action taken in such cases would be governed by the Supply Code.Case No. over the energy charges applicable for supply at 11 kV/22 kV/33 kV. Additional Demand Charges will be levied on such consumers on the Standby component. then the load factor incentive will not be payable in that month. In case any consumer exceeds the Contract Demand on more than three occasions in a calendar year. a consumer (availing Demand based Tariff) exceeds his Contract Demand. whichever is lesser. even if the maximum demand exceeds the contract demand in that duration. 2003. or Page 299 of 302 . However. and not on the entire Contract Demand. Additional Demand Charges for Consumers having Captive Power Plant For customers having Captive Power Plant (CPP). the consumer would be subjected to the penal charges for exceeding the contract demand and has to pay the applicable penal charges). the average of the billing to the consumer for the last twelve months. 20/kVA/month only on extent of Stand-by demand component. 12) The amount of the security shall be an equivalent of the average of three months of billing or the billing cycle period.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period In case the billing demand exceeds the contract demand in any particular month. RInfra-D would require any person to whom supply of electricity has been sanctioned to deposit a security in accordance with the provisions of clause (a) of subsection (1) of Section 47 of the Electricity Act. For the purpose of determining the average billing. he will be billed at the appropriate Demand Charge rate for the Demand actually recorded and will be additionally charged at the rate of 150% of the prevailing Demand Charges (only for the excess Demand over the Contract Demand).e. Penalty for exceeding Contract Demand In case. the additional demand charges would be at a rate of Rs. (The billing demand definition excludes the demand recorded during the non-peak hours i. Security Deposit 11) Subject to the provisions of sub-section (5) of Section 47 of the Act. Supply at 100 kV a) In the event power is supplied at 100 kV.

Case No. after recovery of all amounts due. 15) Where the amount of security deposit maintained by the consumer is higher than the security required to be maintained under this Supply Code Regulation 11. at the option of such person. at the option of such consumer. diversity factor and number of working shifts of the consumer. RInfra-D shall. with intimation to the consumer. Provided that the consumer shall be given a time period of not less than thirty days to deposit the additional security pursuant to such demand. RInfra-D shall be entitled to raise a demand for additional security on the consumer. by way of cash. shall be considered 13) Where RInfra-D requires security from a consumer at the time of commencement of service. if different from such person.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period in cases where supply has been provided for a shorter period. irrevocable letter of credit or unconditional bank guarantee issued by a scheduled commercial bank. 18) A consumer . deposit security. the amount of such security shall be estimated by the Distribution Licensee based on the tariff category and contract demand/sanctioned load. refund the remainder amount held by the Distribution Licensee to the person who deposited the security. is higher than the security deposit of the consumer.00.000) kilo-watt hours per month. and (ii) with no undisputed sums payable to RInfra-D under Section 56 of the Act may. the average of the billing of such shorter period. RInfra-D shall refund the excess amount of such security deposit in a single payment: Provided that such refund shall be made upon request of the person who gave the security and with an intimation to the consumer. 16) Where the amount of security re-calculated pursuant as above. 17) Upon termination of supply. shall be. 14) RInfra-D shall re-calculate the amount of security based on the actual billing of the consumer once in each financial year. Page 300 of 302 . load factor.(i) with a consumption of electricity of not less than one lakh (1. either by way of adjustment in the next bill or by way of a separate cheque payment within a period of thirty (30) days from the receipt of such request: Provided further that such refund shall not be required where the amount of refund does not exceed the higher of ten (10) per cent of the amount of security deposit required to be maintained by the consumer or Rupees Three Hundred. 19) RInfra-D shall pay interest on the amount of security deposited in cash (including cheque and demand draft) by the consumer at a rate equivalent to the bank rate of the Reserve Bank of India: Provided that such interest shall be paid where the amount of security deposited in cash under this Regulation 11 of Supply Code is equal to or more than Rupees Fifty. if different from such person.

80 shall be considered). will only be considered for determination of the Billing demand. unless otherwise provided in any general or specific Order of the Commission. Note: a) Demand registered during the period 0600 to 2200 Hrs. Contract Demand Contract Demand means demand in Kilowatt (kW) / Kilo –Volt Ampere (kVA). Definitions: Maximum Demand Maximum Demand in Kilowatts or Kilo-Volt-Amperes. Sanctioned Load Sanctioned Load means load in Kilowatt (kW) mutually agreed between RInfra-D and the consumer Billing Demand (for LT categories): Monthly Billing Demand will be the higher of the following: a) 65% of the actual Maximum Demand recorded in the month during 0600 hours to 2200 hours. b) 40% of the Contract Demand.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period 20) Interest on cash security deposit shall be payable from the date of deposit by the consumer till the date of dispatch of the refund by RInfra-D. Page 301 of 302 . mutually agreed between RInfra-D and the consumer as entered into in the agreement or agreed through other written communication (For conversion of kW into kVA.Case No. means twice the largest number of kilowatt-hours or kilo-Volt-Ampere-hours supplied and taken during any consecutive thirty minute blocks in that period. Power Factor of 0. in relation to any period shall.

Case No. c) 50% of the Contract Demand. Page 302 of 302 . Billing Demand (for HT categories): Monthly Billing Demand will be the higher of the following: a) Actual Maximum Demand recorded in the month during 0600 hours to 2200 hours. Note: a) Demand registered during the period 0600 to 2200 Hrs. will only be considered for determination of the Billing demand. b) In case of change in Contract Demand.9 of 2013 MERC Order for RInfra-D for MYT for Second Control Period b) In case of change in Contract Demand. the period specified in Clause (a) above will be reckoned from the month following the month in which the change of Contract Demand takes place. the period specified in Clause (a) above will be reckoned from the month following the month in which the change of Contract Demand takes place. b) 75% of the highest billing demand recorded during preceding eleven months subject to limit of contract demand.

Sign up to vote on this title
UsefulNot useful