Reliance Order Case No 9 of 2013

Before the
MAHARASHTRA ELECTRICITY REGULATORY COMMISSION

World Trade Centre, Centre No.1, 13
th
Floor, 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, 1
st
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-Ds 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
Page 2 of 302

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 3 of 302

TABLE OF CONTENTS
1. BACKGROUND AND SALIENT FEATURES OF THE ORDER --------------------------------------------- 13
1.1 Background ---------------------------------------------------------------------------------------------------------------- 13
1.2 Technical Validation Session (TVS) ----------------------------------------------------------------------------------- 15
1.3 Admission of the Petition and Public Process ----------------------------------------------------------------------- 16
1.4 Organisation of the Order ----------------------------------------------------------------------------------------------- 17
2. OBJECTIONS, RINFRA-DS RESPONSE AND COMMISSIONS RULINGS ---------------------------- 18
2.1 Tariff related suggestions ------------------------------------------------------------------------------------------------ 18
2.2 Sales ------------------------------------------------------------------------------------------------------------------------- 23
2.3 Distribution Loss ---------------------------------------------------------------------------------------------------------- 25
2.4 Power Purchase Expenses ----------------------------------------------------------------------------------------------- 27
2.5 Operation and Maintenance (O&M) Expenses --------------------------------------------------------------------- 34
2.6 Capital Expenditure and Capitalisation ------------------------------------------------------------------------------ 35
2.7 Depreciation ---------------------------------------------------------------------------------------------------------------- 36
2.8 Procedural Issue----------------------------------------------------------------------------------------------------------- 37
2.9 Energy Charges ----------------------------------------------------------------------------------------------------------- 38
2.10 Wheeling Charges ----------------------------------------------------------------------------------------------------- 38
2.11 Cross Subsidy Surcharge -------------------------------------------------------------------------------------------- 40
2.12 Regulatory Asset and its Recovery Mechanism ----------------------------------------------------------------- 42
2.13 Distribution License related issues --------------------------------------------------------------------------------- 44
3. DETERMINATION OF THE ARR FOR THE CONTROL PERIOD FROM FY 2012-13 TO FY 2015-
16-------------------------------------------------------------------------------------------------------------------------------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
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3.1.5 Demand Side Management (DSM) Measures ---------------------------------------------------------------------- 54
3.1.6 Commissions Rulings ------------------------------------------------------------------------------------------------- 56
3.2 Distribution Losses ------------------------------------------------------------------------------------------------------- 58
3.2.1 Distribution Losses for period from FY 2012-13 to FY 2015-16 ----------------------------------------------- 58
3.3 Energy Balance and Power Purchase Requirement ---------------------------------------------------------------- 61
3.3.1 Energy Balance from FY 2012-13 to FY 2015-16 ---------------------------------------------------------------- 61
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 Transmission Charges --------------------------------------------------------------------------------------------------- 92
3.6 Stand-by Charges --------------------------------------------------------------------------------------------------------- 93
3.7 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 Commissions Rulings ----------------------------------------------------------------------------------------------- 103
3.9 Depreciation --------------------------------------------------------------------------------------------------------------- 106
3.9.1 Depreciation submitted by RInfra-D ------------------------------------------------------------------------------- 106
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 Commissions Rulings -------------------------------------------------------------------------------------------- 120
3.11 Return on Equity ----------------------------------------------------------------------------------------------------- 124
3.11.1 Return on Equity submitted by RInfra-D ---------------------------------------------------------------------- 124
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
3.13 Interest on Working Capital and Security Deposits ----------------------------------------------------------- 139
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3.13.1 RInfra-Ds Submission ------------------------------------------------------------------------------------------- 139
3.14 Income Tax ------------------------------------------------------------------------------------------------------------ 142
3.14.1 RInfra-Ds Submissions ------------------------------------------------------------------------------------------ 142
3.15 Contribution to Contingency Reserves --------------------------------------------------------------------------- 144
3.16 Non-Tariff Income --------------------------------------------------------------------------------------------------- 145
3.17 Income from Other Businesses ------------------------------------------------------------------------------------ 148
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 Aggregate Revenue Requirement --------------------------------------------------------------------------------- 156
4. RECOVERY OF REGULATORY ASSET ------------------------------------------------------------------------- 161
4.1 Quantification of Regulatory Asset till FY 2011-12 --------------------------------------------------------------- 161
4.2 Commissions Rulings --------------------------------------------------------------------------------------------------- 163
4.3 Regulatory Asset Recovery Mechanism ----------------------------------------------------------------------------- 164
4.3.1 Proposed Recovery Mechanism ------------------------------------------------------------------------------------ 164
5. TARIFF PHILOSOPHY ----------------------------------------------------------------------------------------------- 173
5.1 Wheeling Charges and Wheeling Losses ---------------------------------------------------------------------------- 173
5.1.1 RInfra-D submission on Wheeling Charges ---------------------------------------------------------------------- 173
5.2 Cross Subsidy Surcharge ----------------------------------------------------------------------------------------------- 175
5.2.1 RInfra-Ds Submissions ---------------------------------------------------------------------------------------------- 175
5.3 Revenue Gap and Revenue requirement from retail tariff ------------------------------------------------------ 185
5.3.1 Revenue Gap at existing tariff -------------------------------------------------------------------------------------- 185
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5.3.3 Revenue requirement to be recovered from Revised Tariffs --------------------------------------------------- 186
5.4 Tariff Philosophy --------------------------------------------------------------------------------------------------------- 188
5.5 Commissions 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 REVISED TARIFFS WITH EFFECT FROM 1 September, 2013 (for FY 2013-14) ----------------------- 212
5.7 REVISED TARIFFS WITH EFFECT FROM 1 APRIL, 2014 (for FY 2014-15) --------------------------- 216
5.8 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 7 of 302

List of Tables

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

TABLE 43: ANNUAL HOUR WISE DEFICIT AND SURPLUS AS SUBMITTED BY RINFRA-D (MU) ...................................... 87
TABLE 44: QUANTUM AND RATE OF SHORT TERM POWER PROCUREMENT AS PROJECTED BY RINFRA-D .................... 89
TABLE 45: QUANTUM AND RATE OF SURPLUS POWER SALE PROJECTED BY RINFRA-D ............................................... 90
TABLE 46 ACTUAL SHORT-TERM POWER PURCHASE DURING FY 2011-12 ................................................................... 90
TABLE 47 PURCHASE FROM SHORT-TERM SOURCES BY RINFRA-D (MU) ..................................................................... 91
TABLE 48 SHORT-TERM POWER PURCHASE APPROVED BY THE COMMISSION ............................................................... 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. CR) ...... 92
TABLE 51 TRANSMISSION CHARGES PAYABLE BY RINFRA-D AS APPROVED BY THE COMMISSION .............................. 93
TABLE 52: STANDBY CHARGES FOR THE SECOND CONTROL PERIOD AS SUBMITTED BY RINFRA-D (RS. CR)
........................................................................................................................................................................... 94
TABLE 53 STANDBY 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. CR) .... 95
TABLE 55: SLDC FEES AND CHARGES AS APPROVED BY THE COMMISSION FOR RINFRA-D ........................................ 95
TABLE 56: SUMMARY OF POWER PURCHASE REQUIREMENT AS SUBMITTED BY RINFRA-D (MU) ................................ 95
TABLE 57: SUMMARY OF POWER PURCHASE COST AS SUBMITTED BY RINFRA-D (RS. CR) ......................................... 96
TABLE 58: SUMMARY OF POWER PURCHASE REQUIREMENT AS APPROVED BY THE COMMISSION (MU) ...................... 96
TABLE 59: SUMMARY OF POWER PURCHASE COST AS APPROVED BY THE COMMISSION (RS. CRORE) ......................... 97
TABLE 60: CAPEX-RETAIL SUPPLY BUSINESS AS SUBMITTED BY RINFRA-D (RS. CR) ............................................... 100
TABLE 61: CAPEX-WIRES BUSINESS AS SUBMITTED BY RINFRA-D (RS. CR).............................................................. 100
TABLE 62: SUMMARY OF CAPEX (WIRE & RETAIL) AS SUBMITTED BY RINFRA-D (RS. CR.)...................................... 101
TABLE 63: CAPITALISATION PLAN FOR RETAIL SUPPLY BUSINESS AS SUBMITTED BY RINFRA-D (RS. CR) ................ 101
TABLE 64: CAPITALISATION PLAN FOR WIRES BUSINESS AS SUBMITTED BY RINFRA-D (RS. CR) .............................. 102
TABLE 65: SUMMARY OF CAPITALISATION (WIRE & RETAIL) AS SUBMITTED BY RINFRA-D (RS. 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. CR) ..................................................................................... 103
TABLE 67: CAPITALISATION PLAN FOR WIRE BUSINESS AS APPROVED BY THE COMMISSION (RS. CR) ...................... 104
TABLE 68: CAPITALISATION PLAN FOR RETAIL SUPPLY BUSINESS AS APPROVED BY THE COMMISSION (RS. CR) ...... 104
TABLE 69: VARIATION IN CAPITALISATION AS APPROVED BY THE COMMISSION IN BUSINESS PLAN ORDER AND AS
SUBMITTED BY RINFRA-D (RS. CR) .................................................................................................................. 105
TABLE 70: ADDITIONAL SCHEMES APPROVED POST ISSUANCE OF BUSINESS PLAN ORDER AND PRE SUBMISSION OF
MYT PETITION (RS. CR) ................................................................................................................................... 106
TABLE 71: DEPRECIATION RATES AS SUBMITTED BY RINFRA-D (AFTER CROSSING 70% THRESHOLD) ....................... 107
TABLE 72: DEPRECIATION FOR RETAIL SUPPLY BUSINESS AS SUBMITTED BY RINFRA-D (RS. CR) ............................. 110
TABLE 73: DEPRECIATION FOR WIRE BUSINESS AS SUBMITTED BY RINFRA-D (RS. CR) ............................................. 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) ........................................................................................................ 111
TABLE 75: DEPRECIATION FOR WIRES BUSINESS AS APPROVED BY THE COMMISSION (RS. CR) ................................. 112
TABLE 76: DEPRECIATION FOR RETAIL SUPPLY BUSINESS AS APPROVED BY THE COMMISSION (RS. CR) ................... 113
TABLE 77: TOTAL DEPRECIATION AS APPROVED BY THE COMMISSION FOR THE SECOND CONTROL PERIOD (RS. CR)
......................................................................................................................................................................... 113
TABLE 78: LOAN SCHEDULE AS SUBMITTED BY RINFRA-D (RS. CR) .......................................................................... 115
TABLE 79: SUMMARY OF INTEREST EXPENSES FOR EXISTING LOANS FOR RETAIL SUPPLY BUSINESS AS SUBMITTED BY
RINFRA-D (RS. CR) .......................................................................................................................................... 117
TABLE 80: SUMMARY OF INTEREST EXPENSES FOR EXISTING LOANS FOR WIRES BUSINESS AS SUBMITTED BY RINFRA-
D (RS. CR) ........................................................................................................................................................ 117
TABLE 81: SUMMARY OF INTEREST EXPENSES FOR NEW LOANS FOR WIRES BUSINESS AS SUBMITTED BY RINFRA-D
(RS. CR) ............................................................................................................................................................ 118
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TABLE 82: SUMMARY OF INTEREST EXPENSES FOR NEW LOANS FOR RETAIL SUPPLY BUSINESS AS SUBMITTED BY
RINFRA-D (RS. CR) .......................................................................................................................................... 118
TABLE 83: SUMMARY OF TOTAL INTEREST EXPENSES FOR WIRES & RETAIL BUSINESS AS SUBMITTED BY RINFRA-D
(RS. CR) ............................................................................................................................................................ 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. CR) ................................................................................ 119
TABLE 85: WEIGHTED AVERAGE INTEREST RATE OF RINFRA AS COMPUTED BY THE COMMISSION ............................ 123
TABLE 86: INTEREST EXPENSES ON LONG TERMS LOANS FOR THE MYT PERIOD AS APPROVED BY THE COMMISSION
(IN RS. CRORE) ................................................................................................................................................. 123
TABLE 87: RETURN ON EQUITY FOR WIRES BUSINESS AS SUBMITTED BY RINFRA-D (RS. CR) .................................. 125
TABLE 88: RETURN ON EQUITY FOR RETAIL SUPPLY BUSINESS AS SUBMITTED BY RINFRA-D (RS. CR) .................... 126
TABLE 89: RETURN ON EQUITY FOR WIRES AND RETAIL BUSINESS AS SUBMITTED BY RINFRA-D (RS. 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. CR) ............................................................................................................. 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 .............................................................. 130
TABLE 93: SUMMARY OF EMPLOYEE EXPENSES AS SUBMITTED BY RINFRA-D (RS. CR) ............................................ 134
TABLE 94: SUMMARY OF A&G EXPENSES AS SUBMITTED BY RINFRA-D (RS. CR) .................................................... 134
TABLE 95: SUMMARY OF R&M EXPENSES AS SUBMITTED BY RINFRA-D (RS. CR) .................................................... 135
TABLE 96: SUMMARY OF INDICES USED BY RINFRA-D TO PROJECT O&M EXPENSES ................................................ 135
TABLE 97: O&M EXPENSES APPROVED BY THE COMMISSION (RS CRORE) ................................................................ 138
TABLE 98: INTEREST ON WORKING CAPITAL AND SECURITY DEPOSIT FOR WIRE & RETAIL SUPPLY BUSINESS AS
SUBMITTED BY RINFRA-D (RS. CRORE) ............................................................................................................ 139
TABLE 99: INTEREST ON WORKING CAPITAL FOR WIRE & RETAIL SUPPLY BUSINESS APPROVED BY THE COMMISSION
(RS. CRORE) ..................................................................................................................................................... 141
TABLE 100: INCOME TAX PROJECTIONS AS SUBMITTED BY RINFRA-D (RS. CR) ......................................................... 142
TABLE 101: INCOME TAX APPROVED BY THE COMMISSION (IN RS. CRORE) ............................................................... 143
TABLE 102: CONTRIBUTION TO CONTINGENCY RESERVES AS SUBMITTED BY RINFRA-D (WIRES, RS. CRORE) ......... 144
TABLE 103: CONTRIBUTION TO CONTINGENCY RESERVE AS SUBMITTED BY RINFRA-D (RETAIL, RS. CRORE) .......... 145
TABLE 104: CONTRIBUTION TO CONTINGENCY RESERVE APPROVED BY THE COMMISSION (RS. CRORE) .................. 145
TABLE 105: ACTUAL RECOVERY FROM THEFT OF POWER FOR FY 13 TILL JANUARY 2013 AS SUBMITTED BY RINFRA-D
......................................................................................................................................................................... 147
TABLE 106:NON-TARIFF INCOME AS SUBMITTED BY RINFRA-D FOR RETAIL SUPPLY (RS. CRORE) ............................ 147
TABLE 107: NON-TARIFF INCOME AS SUBMITTED BY RINFRA-D FOR WIRES BUSINESS (RS. CRORE) ........................ 147
TABLE 108:NON-TARIFF INCOME APPROVED BY THE COMMISSION FOR RETAIL SUPPLY (RS. CRORE) ....................... 148
TABLE 109: NON-TARIFF INCOME APPROVED BY THE COMMISSION FOR WIRES BUSINESS (RS. CRORE) ................... 148
TABLE 110: INCOME FROM DEVIDAS LANE OFFICE AS SUBMITTED BY RINFRA-D ...................................................... 149
TABLE 111: INCOME FROM OTHER BUSINESS AS SUBMITTED BY RINFRA-D (RS. CR) ................................................. 152
TABLE 112: INCOME FROM OTHER BUSINESS APPROVED BY THE COMMISSION (RS. CRORE) ...................................... 152
TABLE 113: AGGREGATE REVENUE REQUIREMENT SUBMITTED BY RINFRA-D- RETAIL SUPPLY BUSINESS (RS. CRORE)
......................................................................................................................................................................... 156
TABLE 114: AGGREGATE REVENUE REQUIREMENT SUBMITTED BY RINFRA-D- WIRES BUSINESS (RS. CRORE) ........ 157
TABLE 115: TOTAL AGGREGATE REVENUE REQUIREMENT SUBMITTED BY RINFRA-D- (RETAIL SUPPLY +WIRES)
BUSINESS (RS. CRORE) ..................................................................................................................................... 158
TABLE 116: AGGREGATE REVENUE REQUIREMENT APPROVED BY THE COMMISSION- RETAIL SUPPLY BUSINESS (RS.
CRORE) ............................................................................................................................................................. 158
TABLE 117: AGGREGATE REVENUE REQUIREMENT APPROVED BY THE COMMISSION- WIRES BUSINESS (RS. CRORE)
......................................................................................................................................................................... 159
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TABLE 118: TOTAL AGGREGATE REVENUE REQUIREMENT APPROVED BY THE COMMISSION- (RETAIL SUPPLY
+WIRES) BUSINESS (RS. CRORE) ...................................................................................................................... 160
TABLE 119: CUMULATIVE REVENUE GAP WITH CARRYING COST TILL FY 2011-12 AS SUBMITTED BY RINFRA-D (RS.
CRORE) ............................................................................................................................................................. 162
TABLE 120: CUMULATIVE REGULATORY ASSET WITH CARRYING COST TILL FY 2011-12 AS APPROVED BY THE
COMMISSION (RS. CRORE) ................................................................................................................................ 164
TABLE 121: BIFURCATION OF REGULATORY ASSET TO OWN AND CHANGEOVER CONSUMERS AS SUBMITTED BY
RINFRA-D ......................................................................................................................................................... 164
TABLE 122: REGULATORY ASSET RECOVERY FOR OWN CONSUMERS AS SUBMITTED BY RINFRA-D ......................... 165
TABLE 123: DETERMINATION OF REGULATORY ASSET CHARGE FOR CHANGEOVER SUBMITTED BY RINFRA-D ........ 166
TABLE 124: REGULATORY ASSET CHARGE APPROVED BY THE COMMISSION (RS CRORE) ......................................... 169
TABLE 125: REGULATORY ASSET CHARGE APPROVED BY THE COMMISSION (RS/KWH) ........................................... 170
TABLE 126: EXISTING WHEELING CHARGES AS SUBMITTED BY RINFRA-D ................................................................ 173
TABLE 127: WHEELING CHARGES AS PROPOSED BY RINFRA-D FOR THE REMAINING PART OF SECOND CONTROL
PERIOD.............................................................................................................................................................. 173
TABLE 128: WHEELING CHARGES APPROVED BY THE COMMISSION FOR SECOND CONTROL PERIOD (RS CRORE) ..... 174
TABLE 129: MARGINAL POWER PURCHASE COST PER UNIT FOR CSS CALCULATIONS AS SUBMITTED BY RINFRA-D (RS.
/KWH) ............................................................................................................................................................... 176
TABLE 130: SYSTEM LOSSES FOR CSS CALCULATIONS AS SUBMITTED BY RINFRA-D................................................ 177
TABLE 131: WHEELING CHARGES FOR CSS CALCULATIONS AS SUBMITTED BY RINFRA-D ........................................ 177
TABLE 132: CSS (RS. /KWH) FOR THE SECOND CONTROL PERIOD AS SUBMITTED BY RINFRA-D .............................. 177
TABLE 133: MARGINAL COST OF POWER PURCHASE BY RINFRA-D APPROVED BY THE COMMISSION (RS/KWH) ...... 180
TABLE 134: SYSTEM LOSSES FOR CSS CALCULATIONS APPROVED BY THE COMMISSION (%) .................................... 180
TABLE 135: WHEELING CHARGES FOR CSS CALCULATIONS AS APPROVED BY THE COMMISSION (RS/KWH) ............ 181
TABLE 136: APPROVED CSS FOR FY 2013-14(RS/KWH) ........................................................................................... 181
TABLE 137: APPROVED CSS FOR FY 2014-15(RS/KWH) ........................................................................................... 182
TABLE 138: APPROVED CSS FOR FY 2015-16 (RS/KWH) .......................................................................................... 183
TABLE 139: REVENUE GAP FOR FY 2012-13 AS SUBMITTED BY RINFRA-D (RS CRORE) ........................................... 185
TABLE 140: REVENUE GAP FOR FY 2012-13 APPROVED BY THE COMMISSION (RS CRORE) ....................................... 186
TABLE 141: NET REVENUE REQUIREMENT FOR THE SECOND CONTROL PERIOD FROM RINFRA-D CONSUMERS 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) ...................................................................................................................................................... 187
TABLE 143: NET REVENUE REQUIREMENT AND NORMALISED RECOVERY 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) ............................................. 189
TABLE 145: DEMAND CHARGES AS SUBMITTED BY RINFRA-D (RS/ KVA/ MONTH)................................................... 190
EXISTING TARIFF APPROVED BY THE COMMISSION EXCLUDING REGULATORY ASSET RECOVERY (RS CRORE) 198
EXISTING TARIFF APPROVED BY THE COMMISSION INCLUDING REGULATORY ASSET RECOVERY (RS CRORE) . 199

Page 11 of 302

List of Abbreviations

AAD Advance Against Depreciation
A&G Administrative and General
ABR Average Billing Rate
ACOS Average Cost of Supply
APR Annual Performance Review
ARR Aggregate Revenue Requirement
ATE Appellate Tribunal for Electricity
BPL Below Poverty Line
BPP Bilateral Power Purchase
BEST Brihanmumbai Electric Supply & Transport Undertaking
CAGR Compound Annual Growth Rate
Capex Capital Expenditure
CBA Cost Benefit Analysis
CERC Central Electricity Regulatory Commission
CGRF Consumer Grievance Redressal Forum
COD Date of Commissioning
CSR Corporate Social Responsibility
CSS Cross Subsidy Surcharge
CPI Consumer Price Index
DPC Delayed Payment Charge
DPR Detailed Project Report
DSM Demand Side Management
DSS Distribution Substation
EA, 2003 Electricity Act, 2003
FAC Fuel Adjustment Cost
FBSM Final Balancing and Settlement Mechanism
FY Financial Year
GoM Government of Maharashtra
GFA Gross Fixed Assets
G, T & D Generation, Transmission and Distribution
HT High Tension
IEGC Indian Electricity Grid Code
IoWC Interest on Working Capital
InSTS Intra State Transmission System
LMC Load Management Charges
LT Low Tension
kVA Kilo Volt Ampere
kW Kilo Watt
kWh Kilo Watt hour
LCC Load Control Centre
Page 12 of 302

MAT Minimum Alternate Tax
MCGM Municipal Corporation of Greater Mumbai
MERC Maharashtra Electricity Regulatory Commission
MIAL Mumbai International Airport Ltd.
MMOPL Mumbai Metro One Private Limited
MOD Merit Order Dispatch
MSEDCL Maharashtra State Electricity Distribution Company Ltd.
MSLDC Maharashtra State Load Despatch Centre
MU Million Units
MVA Mega-Volt Ampere
MW MegaWatt
MYT Multi Year Tariff
MERC Tariff
Regulations
MERC (Terms and Conditions of Tariff) Regulations, 2005
MERC MYT
Regulations, 2011
MERC (Multi Year Tariff) Regulations, 2011
OA Open Access
O&M Operation and Maintenance
R&M Repair and Maintenance
RE Renewable Energy
RAC Regulatory Asset Charge
REC Renewable Energy Certificate
RInfra Reliance Infrastructure Limited
RInfra-G Reliance Infrastructure Limited- Generation Business
RInfra-T Reliance Infrastructure Limited- Transmission Business
RInfra-D Reliance Infrastructure Limited- Distribution Business
RoE Return on Equity
RPO Renewable Purchase Obligation
RPO Regulations MERC (Renewable Purchase Obligation, its Compliance and implementation
of REC framework) Regulations, 2010
RPS Renewable Purchase Specification
SAIDI System Average Interruption Duration Index
SBAR State Bank of India Advance Rate
SBI PLR State Bank of India Prime Lending Rate
SLDC State Load Despatch Centre
TL Transmission Loss
TOD Time of Day
TVS Technical Validation Session
UI Unscheduled Interchange
WPI Wholesale Price Index
WL Wheeling Loss

Page 13 of 302

1. BACKGROUND AND SALIENT FEATURES OF THE ORDER

1.1 Background

1.1.1.1 Reliance Infrastructure Limited (RInfra) is an integrated Utility engaged in
Generation, Transmission and Distribution of electricity in and around suburban
areas of Mumbai. RInfra was granted a licence to distribute electricity by the
Commission for a period of 25 years with effect from August 16, 2011. Prior to this,
RInfra was a deemed Distribution Licensee having a licence to distribute electricity
in the suburbs of Mumbai, under the terms of the Electricity Act, 2003. The
distribution business of RInfra shall be, hereafter referred to as RInfra-D.
1.1.1.2 RInfra-D in this Petition submitted that it is currently catering to electricity needs of
approximately 2.8 million consumers in its licensed area (in and around suburbs of
Mumbai) spread over 400 Sq. kms with energy input requirement of more than 9
Billion Units per annum and coincident Maximum Demand in the range of 1650
MVA. As on 31 March, 2012, the distribution system of RInfra-D included 5775
Nos. of 11kV Substations, 4519 ckt-kms of HT cable and 4202 ckt-kms of LT cable.
1.1.1.3 The Commission, in exercise of the powers conferred by the EA, 2003, notified the
Maharashtra Electricity Regulatory Commission (Terms and Conditions of Tariff)
Regulations, 2005, (hereinafter referred as the "MERC Tariff Regulations") on
August 26, 2005. These Regulations superseded the MERC (Terms and Conditions
of Tariff) Regulations, 2004.
1.1.1.4 The Commission, in exercise of the powers conferred by the EA, 2003, notified the
Maharashtra Electricity Regulatory Commission (Multi Year Tariff) Regulations,
2011, (hereinafter referred as the MERC MYT Regulations, 2011) on 4 February,
2011. These Regulations are applicable for the second Control Period starting from
FY 2011-12 to FY 2015-16.
1.1.1.5 RInfra-D filed a Petition before the Commission on March 25, 2011, under Section
94 (2) of the Electricity Act, 2003 (EA, 2003), Regulation 85 (a) of the MERC
(Conduct of Business) Regulations, 2004, and Regulations 4.1, 99 and 100 of the
MERC Multi Year Tariff (MYT) Regulations, 2011, in Case No. 45 of 2011 seeking
deferment of the implementation of MYT Regulations, 2011.
Page 14 of 302

1.1.1.6 The Commission vide its Order dated September 2, 2011 in the said case, allowed
the exemption to RInfra-D from MERC (MYT) Regulations, 2011 for a period of 1
year, till March 31, 2012. 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, 2005, on or
before October 31, 2011. The relevant extract from the Order is as under:
In light of the above, the Commission is of the view that it has become
necessary to invoke the proviso to Regulation 4.1 of MYT Regulations,
2011 in order to exempt the determination of tariff of RInfra under the
Multi-Year Tariff framework till March 31, 2012 (i.e., for a period of 1
year). The said exemption is hereby granted. The Commission is also
empowered under Regulation 100 of the MYT Regulations, 2011 to
remove any difficulty arising in giving effect to the provisions of MYT
Regulations 2011. Accordingly, the Commission hereby directs RInfra to
file the Petition for determination of tariff for FY 2011-12 within 2 months
time, i.e., on or before October 31, 2011.
1.1.1.7 The Commission amended the MYT Regulations vide its notification dated 21
October, 2011; notified as Maharashtra Electricity Regulatory Commission (Multi
Year Tariff) (First Amendment) Regulations, 2011. The Commission in this
amendment to the Regulations specified, as under:
Provided in case an Order of exemption has been issued under
Regulation 4.1 then the concerned Generating Company, Transmission
Licencee or Distribution Licencee shall file annual Petitions for approval
of ARR and tariff during the period of exemption, in accordance with
MERC (Terms and Conditions of Tariff) Regulations, 2005.
1.1.1.8 The Commission vide its Order in Case No. 158 of 2011 dated 23 November, 2012
directed RInfra-D as under:
The Commissions computations for the Business Plan of RInfra-D shall form
the basis for filing the MYT Petition for the second Control Period. RInfra-D shall
submit the MYT Petition within 60 days from the date of issuance of this Business
Plan Order...
Page 15 of 302

1.1.1.9 In accordance with the above direction from the Commission and as per Regulation
8 of the MERC MYT Regulations, 2011 RInfra-D submitted its MYT Petition dated
29 January, 2013 registered by the Commission as Case No. 9 of 2013 for approval
of ARR and determination of Tariff from FY 2012-13 to FY 2015-16.

1.1.1.10 The prayers made by the Petitioner in Case No. 9 of 2013 are as under:

1. Approve the ARR forecast and Tariff & Charges for FY 2012-13 to FY
2015-16, as contained in this Petition;
2. Allow the revision in wheeling charges and Cross-Subsidy Surcharge, as
proposed in this petition for the period FY2012-13 to FY2015-16;
3. Approve the recovery of regulatory assets along with carrying cost, as
proposed in the petition;
4. Approve the deviations from the norms prescribed in the MYT
Regulations, as sought in this Petition.
5. Allow additions / alterations / modifications / changes to the Petition at a
future date;
6. Allow any other relief, order or direction, which the Hon'ble Commission
deems fit to be issued;
7. Condone any inadvertent errors/ inconsistencies/omissions/rounding of
differences, etc. as may be there in the Petition.

1.2 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, 2013, in
the presence of authorised Consumer Representatives authorised under MERC (Authorised
Consumer Representative Regulations, 2012. The list of persons, who participated in the
TVS, held on 8 February, 2013 is provided at Appendix-1.
During the TVS, the Commission directed RInfra-D to provide additional information and
clarifications on the issues raised during the TVS and submit the revised Petition.
Subsequently, RInfra-D submitted its replies to the data gaps vide its submissions dated 11
Page 16 of 302

February 2013, 12 February 2013 and 16 February 2013. RInfra-D submitted its revised
Petition on 18 February, 2013, all required information for admission of the Petition.
1.3 Admission of the Petition and Public Process

The Commission admitted the Petition on 22 February, 2013 and vide its letter
MERC/Case No. 9 of 2013/2683 conveyed the same to RInfra-D and further
directed them to publish the approved Public Notice. In accordance with Section 64
of the Act, 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 inviting suggestions and objections from
stakeholders on its Petition. Further, 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. RInfra-D's website
(www.rinfra.com) hosted the documents in downloadable format. The Petition, its
executive summary and copy of public notice were also hosted on the website of the
Commission (www.mercindia.org.in/ www.merc.gov.in) in downloadable format.
The Commission received written objections expressing concerns on several issues,
including tariff of RInfra-D, Power Purchase Expenses, Average cost of supply,
Wheeling and distribution losses, Recoveries against vigilance, Interest on long-
term loan capital, Recovery of regulatory asset, Consumer migration, etc. The
Commission held Public hearing on RInfra-D on 6 April, 2013 at Rang Sharda
Natya Mandir, Bandra Reclamation, Bandra (W), Mumbai- 400050. Consumer
representatives also participated actively in this process. The list of objectors, and
persons who participated in the public hearing, is provided in Appendix-2.
The Commission has ensured that the due process, contemplated under law, was
followed meticulously at every stage to ensure transparency and public
participation. Adequate opportunity was given to all the persons concerned to
submit their response in the matter.
Various objections that were raised on RInfra-Ds Petition after publication of the
notice both in writing as well as during the Public Hearing, along with RInfra-Ds
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response and the Commissions rulings have been summarised in Section 2 of this
Order.

1.4 Organisation of the Order

A list of abbreviations with their expanded forms has been included at the beginning of this
Order. 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;
b) Section 2 of the Order summarises the various objections raised by the
objectors in writing as well as during the Public Hearing held. Each of the
objections is followed by the response of RInfra-D and ruling of the
Commission respectively;
c) Section 3 of the Order details the RInfra-Ds submission for Second Control
Period from FY 2012-13 to FY 2015-16 for ARR and Commissions analysis;
d) Section 4 of the Order details the Regulatory Asset of RInfra-D and its
recovery mechanism;
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.

Page 18 of 302

2. OBJECTIONS, RInfra-DS RESPONSE AND COMMISSIONS
RULINGS

2.1 Tariff related suggestions
i. Shri George John submitted that Tariff proposed by RInfra-D will
adversely affect competition. He also suggested that there should not be
any further increase in CSS, Regulatory Asset Charge and other related
charges.
ii. Bharatiya Udhami Avam Upbhokta Sangh (BUAUS) represented by Shri
Rakshpal Abrol, an authorised Consumer Representative submitted that
RInfra-D must clarify as to why issues of Cross Subsidy Surcharge,
Regulatory Asset, etc., were not projected in its Business Plan Petition.
iii. 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. Similar query was submitted by Mumbai Grahak
Panchayat, an authorised Consumer Representative in the present Case.
iv. 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, as estimated by RInfra-
D.
v. Niwara Vidyalaya submitted that there must be creation of separate
category for schools run by Public Trusts.
vi. Prana Studios Pvt. Ltd. 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.
vii. Shri. Ulhas Chaudhari suggested that MMOPL should be categorized
under HT-II Commercial category rather than HT-Railways category.
viii. Urja Prabodhan Kendra submitted that RInfra-D has proposed anew
surcharge under the head Regulatory Asset Surcharge apart from FAC,
Wheeling Charge and CSS, and suggested that such practice of recovery
from past cases should be discontinued in general in future.
Page 19 of 302

ix. Larsen & Toubro Ltd., Arch-V-Shan Creations, Shri. Geoffrey
Mascarenhas, Mahindra & Mahindra Ltd., Kohinoor Ind. Prem Co-op
Society Ltd., Yojna Udyog Pvt. Ltd., Franco-Indian Pharmaceuticals Pvt.
Ltd., Indus Towers Ltd., Unimark Remedies Ltd., Garima Sadan Co-op.
Housing Society Ltd., Momai Impex, Amar Texdys Corporation, have
also raised objection to the increase in CSS and RAC recovery, as
proposed by RInfra-D. 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.
x. 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, in view of two
licensees supplying power in same area.
xi. 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, Wheeling charges and CSS, 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.
xii. Shri N. Ponrathnam submitted that there should not be any levy of demand
charges on LT consumers. Further, 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. Further,
Shri N. Ponrathnam submitted that RInfra-D should provide reason for
considering Mumbai Metro tariff as that of Railways (tariff is Rs. 5/kWh
which is less than ACoS of Rs. 7.48/kWh).
xiii. Shri N. Ponrathnam further submitted that the consumers of commercial
categories (LT II-a, LT II-b, 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.
Page 20 of 302

RInfra-Ds Response
i. RInfra-D submitted that the power purchase cost of RInfra-D is
significantly lower than TPC-D for each year of the MYT Period.
However, since RInfra-D is saddled with a consumer mix highly skewed
in favour of low end/ low paying capacity consumers, 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. RInfra-D further submitted
that equity has to be created through self balancing means such as Cross
Subsidy Surcharge; otherwise historical legacy of consumer mix will wipe
out competition and create another monopoly.
ii. In response to BUAUS query, 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.
iii. 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, Regulatory Assets,
hike of Wheeling Charges etc. on Changeover Consumers, 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, a copy of the Petition was served to him. Also, RInfra-
D submitted that these issues were also covered in the presentation made
before the Commission during the Technical Validation Session held on
February 8, 2013.
iv. In response to suggestion of BUAUS and Mumbai Grahak Panchayat
regarding implementation of ceiling tariff, RInfra-D submitted that in the
present situation in the common area of supply of RInfra-D and TPC-D,
the network spread, cost structure, consumer mix, cross-subsidy situation,
etc., are widely different between the two Licensees. Due to this, the cost-
plus retail tariffs of the two licensees are very different and there is a wide
Page 21 of 302

gap between the two. RInfra-D suggested that in this situation, the
determination of ceiling Tariff may not be practicable.
v. In response to MMOPL query, RInfra-D submitted that the tariff
categorisation, determination, methodology for cost of supply, cross-
subsidisation 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.
vi. In response to Niwara Vidyalaya query regarding creation of separate
category for schools run by Public Trusts, RInfra-D submitted that
categorisation is the sole prerogative of the Commission.
vii. In response to Prana Studios Pvt. Ltd., 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, which is
also borne out of the Commissions Order in Case No. 138 of 2012.
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 RInfra-
D, but is equitably shared.
c) In a competitive retail supply market consumers decide which supplier
they want to avail power from and such decision is not static, but it is
dynamic, i.e., depending upon the cost economics, suppliers can be
switched by the consumer on any number of occasions.
viii. In response to Shri. Ulhas Chaudhari, RInfra-D submitted that it had
proposed HT-Railways tariff for Metro based on the Commissions
recognition of Metro and Mono rail under HT- Railways tariff category in
TPC-Ds Tariff Order dated 12 September, 2010 in Case No. 98 of 2009.
ix. In response to Urja Prabodhani Kendra, RInfra-D submitted that it only
recovers tariff from consumers as approved for it by the Commission.
x. In response to Shri N. Ponrathnam, RInfra-D submitted that
Page 22 of 302

a) It is only charging tariffs as approved by the Commission. 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. 150/kVA/month to Rs. 210/kVA/month. The objector seems to
suggest that present charges are denominated in Rs. /kW and hence
when converted to Rs. /kVA it becomes Rs. 97.5/kVA and has
computed the increase as 115% whereas the actual increase proposed
is only 40%.
c) There is no tariff shock for BPL consumers in the present MYT
Petition.
d) MMOPL has laid its own 33kV cable and associated infrastructure
from the outgoing side of the RInfras transmission substation located
at Aarey. 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. Further, Delhi Metros tariff is lower than tariff
applicable to Railways.
e) With regards to differentiation between consumers supplied at same
voltage, RInfra-D submitted that tariff determination and
categorisation is a prerogative of the Commission. However, voltage is
not the only factor to be considered for tariff determination. 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 LT-
II (b) and LT II (c) categories.
Commissions Rulings
The Commission has 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 on Regulatory
Asset Recovery and the tariff philosophy in Section 4 and 5 of this Order.
The Commission noted that Business Plan submitted by RInfra-D was as
per MERC MYT Regulations, 2011 and was not a Tariff Petition and
Page 23 of 302

hence retail tariffs, CSS charge and the Regulatory Asset recovery were
not part of the Business Plan Petition.

2.2 Sales
i. 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, which seems to be an incorrect assumption.
ii. Shri. Sandeep Ohri, 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.
iii. The Tata Power Company Ltd. (TPC) submitted that RInfra-D has proposed
lower Wheeling charges recovery by inflating Switchover Sales and
decreasing Changeover Sales.
iv. Shri N. Ponrathnam submitted that RInfra-D should submit various steps
taken to bring down the level of Commercial loss.
RInfra-Ds Response
i. Regarding reply to Mr. Sandeep Ohri, RInfra-D submitted that there is very
little variation between RInfra-Ds 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) FY 12-13 FY 13-14 FY 14-15 FY 15-16
As per Business Plan 6343 6566 6797 7038
As per RInfra-D MYT Petition 6346 6594 6790 7020
Difference 3 28 (7) (18)

ii. 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.
Page 24 of 302

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 Commissions directions given to TPC-D in Order
in Case No. 151 of 2011. Therefore, total sales, shows a decline of 19.7%
between FY 2012-13 and FY 2015-16.
iii. In response to TPCs query regarding over estimation of Switchover sales,
RInfra-D submitted the same reply as submitted to Shri Sandeep Ohri.
iv. In response to Shri N. Ponrathnam, RInfra-D submitted that the theft related
losses due to a variety of reasons meter bypass, theft from LT pillars, meter
tampering, etc. 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, etc.

Commissions Rulings
The Commission observed that the variation in Sales projected in MYT Petition
and Business Plan Order, was mainly on account of changeover sales estimated
by RInfra-D. Variation is as tabulated below:

Particulars FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
Own
Sales
Business Plan Order
6343 6566 6797 7038
MYT Petition
6347 6600 6798 7028
Variation
4 34 1 -10
Change
Over
Sales
Business Plan Order
2872 2852 2845 2861
MYT Petition
3076 1567 526 549
Variation
204 -1286 -2319 -2312

From the above table, 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. 158 of 2011 and present MYT Petition of
RInfra-D, and that is on account of actual sales of FY 2012-13 as has been considered by
RInfra-D.
Page 25 of 302

b) Changeover Sales: Variation in changeover sales is mainly due to assumption of RInfra-
D that conversion of changeover consumers to switchover in accordance with the
directions of the Honble Commission in Case No. 151 of 2011 dated 22 August, 2012.

However, 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. The Commission has elaborated its views in Section 3 of this
Order.

2.3 Distribution Loss

i. Shri George John submitted that Distribution loss of 9.46% is on higher side
and a benchmark of 9.25 % may be set and a suitable incentive may be
provided (2/3rd-1/3rd profit sharing between Utility and Consumers), to
incentivise Utility to achieve 8.5% distribution loss.
ii. Shri. Sandeep Ohri submitted that RInfra-D should explain the difference in
Distribution loss trajectory between Business Plan Order and MYT Petition.
iii. Shri N. Ponrathnam submitted that during Public Hearing Process, RInfra-D
should submit the basis for the statement made in the proceedings before the
Honble ATE that 65% customers come under the category of non-slum
dwellers and 35% are slum dwellers, and that the distribution losses of non-
slum 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.

RInfra-Ds Response

i. RInfra-D submitted that it cannot comment on distribution loss trajectory
suggestions which are not supported by any analysis. RInfra-D further
Page 26 of 302

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.
ii. RInfra-D submitted that in the Business Plan the FY 2011-12 figures were
not available and hence, it considered the distribution loss of FY 2010-11.
Further, the movement of consumers from RInfra-Ds network to TPC-Ds
network could likely cause distribution losses to go up due to worsening of
consumer mix on RInfra-Ds network.
iii. In response to Shri. N. Ponrathnams query, RInfra-D submitted that:
a. Overall distribution losses for RInfra-D area are 9.46% as per FY
2011-12 actuals. The area comprises of high loss and low loss
pockets. In the present arrangement of ACoS, all cost and losses are
socialised so that all consumers pay for the same loss level and based
on the same ACoS, irrespective of usage of network, voltage of
connection or actual loss levels in a particular geographical area.
b. Distribution loss target is set for the area of supply as a whole and not
separately for different pockets within the supply area. However,
losses applicable on wheeling consumers are differentiated voltage-
wise in the presently approved methodology.
c. As long as the consumer remains with RInfra-D supply, it absorbs the
commercial loss of RInfra-D distribution system, however the
moment it transfer to TPC-D as Changeover consumer, it is insulated
from commercial losses of RInfra-D, despite the fact that for all the
changeover consumers metering, assessment of sale towards theft,
stopped/ faulty meters, giving credit for high consumption complaints
is unilaterally done by TPC-D.

Commissions Rulings
The Commission observes that RInfra-D submitted in its Business Plan Petition
that the distribution losses of FY 2011-12 are considered as 9.05%, which were
based on actual losses of FY 2010-11. RInfra-D projected no reduction in base
Page 27 of 302

losses of 9.05% till FY 2013-14, while assuming the loss reduction to 9.00% in
FY 2014-15 and 8.95% in FY 2015-16. For the purpose of the Business Plan, the
Commission in its Order in Case No. 158 of 2011 dated 23 November, 2012
considered the loss trajectory as submitted by RInfra-D for the period from FY
2012-13 to FY 2015-16.

However, 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 2011-
12 as approved in Case No. 124 of 2012. The same base has now been considered
for the MYT period with reduction of 0.05% in the last two years. The quantum
of reduction i.e., 0.05% for FY 2014-15 and FY 2015-16 is kept same as that
submitted by RInfra-D in its Business Plan.

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. 124 of 2012. The Commission has elaborated its views in Section 3 of this
Order.

2.4 Power Purchase Expenses

i. Prayas Energy Group and Mr. 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. 158
of 2011 dated 23 November, 2012. Further, RInfra-D should specifically explain
high cost of Short term and Medium term Power Purchase for the MYT Period.
ii. Shri. Rakshpal Abrol inquired about the procurement of electricity more than 500
MW from their Generating plant, 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.
iii. 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 28 of 302

then tariff of RInfra-D is higher than that of TPC-D. Further, 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.

RInfra-Ds Response
i. RInfra-D submitted that the main variation in power purchase cost of Rs. 1667 Crore
in MYT Petition as compared to approved power purchase cost exists due to DTPS
cost estimates. In the Business Plan Order, 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. Whereas in its current MYT Petition,
RInfra-D has considered the forecast of RInfra-G made in its MYT Petition from FY
2013-14 to FY 2015-16.
ii. 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. Further, the increase in freight charges was
considered based on the actual freight increase effective from March 2012 onwards.
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, whereas the MYT petition only
considers an increase of 4.37% in the freight charges).
iii. RInfra-D further submitted that it has to procure power mainly during peak hours in
view of peculiar load curve. RInfra-D submitted that average rate of Peak Power
purchase as per CERC Market Monitoring Report as given below:
Year Average Peak Rate in Rs/kWh
FY 2009-10 6.29
FY 2010-11 5.26
FY 2011-12 5.48
FY 2012-13* (Upto Nov 12) 5.41

iv. RInfra-D also submitted that the peak power rates are fluctuating year on year with no
specific trend. RInfra-D further submitted that its power purchase rate for short term
Page 29 of 302

power for FY 2011-12 was Rs 4.47/unit which was much lower than peak power rate
of transactions across the Country.
v. RInfra-D has considered power purchase rate for FY 2011-12 as base rate with
escalation of 3% for the Control Period. Regarding Medium term power purchase
rate, RInfra-D submitted that the rates are as discovered following the due process of
competitive bidding and have been adopted by the Commission.
vi. In response to Shri Abrols query, RInfra-D submitted that under an arrangement, the
other sources of power already tied up and to be tied up is adequately addressed in its
MYT Petition. Regarding recovery of cost of generation, transmission and
distribution till 15 August, 2011, RInfra-D stated that all expenses to construct
develop, upgrade, 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. RInfra-D further submitted that no fixed assets are transferred out
of Mumbai distribution business.

Commissions Rulings
The Commission has observed that Shri Ohri seems to have estimated the variation of Rs.
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.
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. i.e. fixed charges of Rs. 216.61 Crore and energy charges at Rs.
2.12 per unit, for the purpose of this Order on provisional basis and the
Commission shall consider the year-wise rate and fixed charges approved in
RInfra-Gs MYT Petition, while issuing the Order on RInfra-Ds MYT Petition.

The variation in Power Purchase cost of DTPS is tabulated as under:
DTPS (in Rs. Crore) FY 2012-13 FY 2013-14 FY 2014- 15 FY 2015-16
Business Plan Order 1,019.24 1,019.24 1,019.24 1,021.57
Page 30 of 302

DTPS (in Rs. Crore) FY 2012-13 FY 2013-14 FY 2014- 15 FY 2015-16
MYT Petition 1,303.67 1,525.02 1,437.90 1,478.55
Variation 284.43 505.78 418.66 456.98
Total (a) 1,665.84

b) Transmission Charges:
In the Commissions Order in Case No. 158 of 2011 in the matter of Business Plan
approval of RInfra-D dated 23 November 2012, Transmission Charges were not
considered in the Power Purchase Expenses table referred by Shri Ohri and were
treated as a separate Head. However, 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. 1143.86 Crore, which is as provided in the table below:

Transmission Charges
(in Rs. Crore)
FY 2012-13 FY 2013-14 FY 2014- 15 FY 2015-16
MYT Petition 265.39 278.66 292.59 307.22
Variation 265.39 278.66 292.59 307.22
Total Variation (c) 1143.86

c) Short Term Power Procurement Rate and Quantum:

Extract of Order in Case No. 158 of 2011 in the matter of Business Plan approval of
RInfra-D dated 23 November 2012.

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. 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.

The short term power procurement cost approved by the Honble Commission is Rs.
4 per kWh based on RInfra-Ds estimates at such point in time. However in the
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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
FY 2012-13 FY 2013-14
MU Rate Rs. Cr MU Rate Rs. Cr
Business Plan
Order
422.40 4.25 179.52 492.80 4.00 197.12
MYT Petition 514.53 4.60 236.68 746.44 4.74 353.81
Variation (Rs
Cr)
57.16 156.69

Short Term
FY 2014-15 FY 2015-16
Business Plan
Order
510.40 4.00 204.16 545.60 4.00 218.24
MYT Petition 493.34 4.88 240.75 631.09 5.03 317.44
Variation (Rs
Cr)
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 Honble Commission is Rs.4 per unit.
However, considering the fact that RInfra-Ds 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.

Sale of Surplus Power
FY 2012-13 FY 2013-14
Business Plan Order -739.03 4.25 -314.09 -651.49 4.00 -260.60
MYT Petition -645.94 3.03 -195.72 -462.32 3.12 -144.24
Page 32 of 302

Variation (Rs Cr) 118.37 116.35
Sale of Surplus Power
FY 2014-15 FY 2015-16
Business Plan Order -813.12 4.00 -325.25 -623.68 4.00 -249.47
MYT Petition -717.93 3.21 -230.46 -615.92 3.31 -203.87
Variation (Rs Cr) 94.79 45.60
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 Honble 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)
FY 2012-13 FY 2013-14
Business Plan Order 952.38 779.13
MYT Petition 986.45 793.68
Variation 34.07 14.55
Total variation on this account is Rs. 49 Crore.

f) Long Term Contract with VIPL:
Page 33 of 302

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 FY2015-
16 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-Ds
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-I nfra D is considering procuring 600MW from
Vidarbha I ndustries 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 VIPLs Butibori Plant
has been submitted on 28 December, 2012 to the Honble Commission and
assigned Case No. 2 of 2013.

VIPL (in Rs.
Crore)
FY 2012-13 FY 2013-14 FY 2014- 15 FY 2015-16
Business Plan Order 498.88 498.88 1,451.97 1,455.95
MYT Petition 497.78 511.75 1,384.87 1,404.58
Variation -1.1 12.87 -67.1 -51.37
Total Variation (f) -106.70

g) Power Procurement from Renewable Energy Sources:

Renewables
(in Rs. Crore)
FY 2012-13 FY 2013-14 FY 2014- 15 FY 2015-16
Business Plan Order 273.84 341.66 353.22 365.28
MYT Petition 274.99 293.22 298.24 304.79
Variation 1.15 -48.44 -54.98 -60.49
Total Variation (g) -162.76
Page 34 of 302

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-Ds 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 one-
time 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 Commissions 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.

Commissions 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 35 of 302

2.6 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-Ds 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 Kendras 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.

Commissions 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,
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RI nfra-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 RI nfra-D are yet to receive in-principle approval.
RI nfra-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-Ds 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.

Commissions 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 37 of 302

2.8 Procedural Issue
i. Shri. Sandeep Ohri and TPC submitted that RInfra-Ds present MYT Petition
filed by RInfra-D was not duly supported by a properly executed affidavit.
ii. TPC submitted that there was misrepresentation of category-wise tariffs in RInfra-
Ds MYT Petition and Public Notice.

RInfra-Ds Response
i. RInfra-D submitted that it had originally prepared the MYT Petition to be filed on
14 February 2013. Accordingly, the affidavit supporting the Petition was
notarised on 14 February 2013. However, there were certain clarifications sought
by the Commission in the meeting held on 15 February 2013. 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. However, these
were inadvertently included as Annexure to the Petition. 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.
ii. RInfra-D denied any misrepresentation of information in the Public Notice.

Commissions Rulings
The Commission has noted the objections submitted by TPC and Consumer
Representatives and also their replies submitted by RInfra-D. The Commission accepts
the request of RInfra-D in condonation of the procedural error in filing reply by RInfra-
D.
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; hence RAC needs to be separated out from the retail tariff of direct
consumers of RInfra-D. 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, there is
no misrepresentation. However, the Commission in this Order has shown the impact of
including recovery of Regulatory Asset on various tariff categories.
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2.9 Energy Charges

Mumbai Grahak Panchayat submitted that RInfra-D has not proposed hike in Energy
Charges for LT consumers which is misleading, as there is no guarantee whether RInfra-
D would not seek FAC at a later date.

RInfra-Ds 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, due to the reduction in energy
charges proposed by RInfra-D. The existing tariffs include the presently applicable FAC.
In accordance with the MYT Regulations, 2011, the incremental FAC, if any, 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.

Commissions Rulings
The Commission noted the objections and also their replies submitted by RInfra-D. The
Commission is of the view that Z factor charge needs to be charged as per MERC MYT
Regulations, 2011.The Commission has elaborated its views in Section 5 of this Order.

2.10 Wheeling Charges
i. Mumbai Grahak Panchayat and Niwara Vidyalaya submitted that RInfra-D
proposed unjustified hike in wheeling charges in its MYT Petition.
ii. Shri Ulhas Chaudhari submitted that the sale of energy to RInfra-D consumers is
nearly 3 times that of energy wheeled to Changeover consumers, but the amount
of wheeling charges recovered from changeover consumers is only 20% of the
total expenses.
iii. Shri N. Ponrathnam submitted that Wheeling Charges denomination proposed by
RInfra-D is in Rs/kWh format and not in Rs/kW/Month. It was further submitted
that whether RInfra-D uses system load factor in computation of the Wheeling
Charges.
Page 39 of 302

RInfra-Ds Response

i. RInfra-D submitted that the Wheeling Charges have not been revised for nearly
four years. The present Wheeling charges were approved vide Commissions
Clarificatory Order dated 22 July 2009, in Case No. 121 of 2008. The increase in
network cost from what was approved in Case No. 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. Further, RInfra-D
submitted that the Wheeling charges are proposed based on the presently
applicable methodology.
ii. In response to Shri Ulhas Chaudharys query, 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).This yields
different rates of wheeling charge for HT sales and LT sales. Wheeling charge for
HT consumers is much lower than that for LT consumers. Since, a large part of
changeover consumption is at HT, the wheeling charges recovery is less as
compared to the total wires expenses. Thus, the consumption mix of changeover
consumers creates a situation of lower recovery of wires cost from change-over
consumers, while passing on a larger share to remaining (almost 96%) LT
consumption of RInfra-Ds own consumers.
iii. In response to Shri N. Ponrathnams query, RInfra-D clarified that
a) Wheeling charges are proposed by RInfra-D in Rs/unit denomination and not
in Rs./kW/month denomination. 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, which is verifiable from SLDC records.
b) It has not determined system Load Factor based on ABR. Further, Wheeling
Charges proposed by RInfra-D is independent of system Load Factor. RInfra-
D further submitted that the Honble 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 licensees network, on payment
Page 40 of 302

of surcharge in addition to charges of wheeling. Hence, wheeling charges are
clearly payable. Further, the Honble ATE, in its Judgment in Appeal Nos.
132, 133, 139, 144 and 164 of 2011, dated 21 December 2012, clearly held
that the act of supply by TPC-D to retail consumers using network of RInfra-
D is Open Access.

Commissions Rulings
The Commission noted the suggestion and objections and also their replies
submitted by RInfra-D. The Commission has elaborated its views in Section 5 of
this Order.

2.11 Cross Subsidy Surcharge
i. Prayas Energy Group and Abhinav Shikshan Prasarak Mandal submitted that
RInfra-D should rework its methodology, as it imposes higher level of Cross
Subsidy Surcharge and also there must be some roadmap for reduction in Cross
Subsidy Surcharge. Similar query was submitted by Mumbai Grahak Panchayat,
TPC and Nagari Nivara Parishad.
ii. 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. Similar query was submitted by Nagari Nivara Parishad.
iii. Shri Abrol submitted that RInfra-D should explain applicability of Cross-subsidy
Surcharge and Regulatory Asset charge for consumers below 1000 kVA.
iv. Indian Hotel & Restaurant Association submitted that RInfra-D has created
hurdles in TPC-Ds network development and CSS cannot be levied on change-
over consumers.
v. MMOPL submitted that RInfra-D had not represented CSS correctly by
considering Average Tariff and Average Cost of supply (ACoS).
vi. Retailers Association of India and Shopping Centres Association of India
submitted that RInfra-Ds submission to impose sudden large increase in CSS is
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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-Ds Response
i. Regarding CSS, 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). RInfra-D further submitted that the
Commission has also ruled, in its Order in Case No. 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. RInfra-D submitted that as the approved current level of cross-subsidy will vary
from one year to next, the CSS shall also vary in accordance with the same.
Further, 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-Ds 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.
iii. RInfra-D further submitted that its proposal of CSS, including its recovery from
change-over/open access consumers is based entirely on the methodology as
approved by the Commission.
iv. In response to Indian Hotel & Restaurant Associations query RInfra-D submitted
that it has never placed any hurdles in TPCs network development
v. In response to MMOPL, RInfra-D submitted it has computed the ACoS as per the
present methodology adopted in State of Maharashtra. ACoS reflects the average
cost of distribution business as a whole. It is not specific to any consumer or
consumer category. Similarly, cross-subsidy is worked out as a ratio of ABR
(based on the proposed tariffs) and the Average Cost of Supply.
vi. 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 , i.e., the Rs. 5.00 per unit shown for FY 2013-14 will only
apply to units above 500. Therefore, if there is consumption of 550 units then the
Page 42 of 302

effective CSS would be = 0.00*100 + 0.00*200 + 3.53*200 + 5.00*50 = Rs. 1.59
per unit, instead of Rs. 5.00 per unit as considered by the objectors. With this
correction, the effective increase in tariffs would be much less than what the
objectors had stated.
Commissions Rulings
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 5 of this Order.

2.12 Regulatory Asset and its Recovery Mechanism
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, CSS and Additional Surcharge. A similar query was raised by
Indian Hotel & Restaurant Association, Urja Prabodhan Kendra and Nagari
Nivara Parishad.
ii. Shri Abrol submitted that the consumers are already paying wheeling charges,
distribution and commercial losses and requested for verification of Regulatory
Assets which was being claimed.
iii. Shri. Ulhas Chaudhari submitted that the entire Regulatory Asset approved in
Case No. 180 of 2011 should be recovered through a one-time monthly bill of the
consumers along with the carrying cost accumulated till date.
iv. TPC submitted that RInfra-D has no right to claim Regulatory Asset Charge from
Changeover Consumers. A similar submission was made by Shri N. Ponrathnam
submitted during Public Hearing Process.
RInfra-Ds Response
i. RInfra-D submitted that the Regulatory Assets represent past accumulated
receivables and are in nature to arrears, recoverable from all consumers, including
past consumers.
Page 43 of 302

ii. In response to Shri Abrols query, 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. 121 of 2008. RInfra-D further submitted that
Regulatory Assets refer to past accumulated revenue deficit and has no relation
with the capital assets, except to the extent to accumulated deficit due to non-
recovery of capital related expenses such as depreciation, interest and return.
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.
iii. In response to Shri. Ulhas Chaudhari, RInfra-D submitted that the suggestion of
entire one time recovery of Regulatory Asset Charge, would lead to a tariff shock
for consumers. Accordingly, RInfra-D has suggested a phased recovery of
regulatory asset.
iv. In response to TPC query, RInfra-D submitted that Regulatory Assets represent
past accumulated receivables and are akin to arrears, recoverable from all
consumers, including past consumers. 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. 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.
Commissions Rulings
The Commission noted the suggestion and objections submitted by consumers
and Consumer Representatives and also replies submitted by RInfra-D. The
Commission has elaborated its views in Section 5 of this Order.

Page 44 of 302

2.13 Distribution License related issues
i. MMOPL submitted that its load is directly connected with 220/33kV receiving
station of RInfra-T. 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. Shri N. 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, subject to payment of surcharge in
addition to the charges for Wheeling as determined by the State Commission.
Hence, RInfra-D should provide its wires to TPC-D to enable them to supply
power to retail consumers.

RInfra-Ds Response
a. RInfra-D submitted that it has a composite licence for wires business and supply
business as stipulated in the EA, 2003 and the expenses are approved in Order to
correctly determine the expenses of network to be levied on Open Access / Wheeling
consumers.
b. In response to MMOPL query, RInfra-D submitted that physical connection
pertaining to Metro Load is made directly with the 33 kV side of RInfra-Ts Aarey
R/S. However, the consumer is a consumer of RInfra Distribution business only.
c. In response to Shri N. Ponrathnam query, RInfra-D submitted that under the Act, each
Distribution Licensee is obligated to lay its own distribution network in order to
supply electricity to the consumers. The Distribution Licensee is duty bound under its
license to develop, maintain and operate its distribution network and meet its
Universal Supply Obligation.

Commissions Rulings
This licence related issues are outside the ambit of present proceeding in tariff
determination process.
The Commission notes that Section 2(15) of the Act, states as under:
Page 45 of 302

(15) "consumer" means any person who is supplied with electricity for his own use by a
licenseeor 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, the Government or such other person,
as the case may be; emphasis added
The Commission notes that the definition of consumer clearly recognises a person who is
supplied by a Licensee as a consumer. Hence, the Commission is of the opinion that
MMOPL is a consumer of RInfra-D, though it may have been connected to RInfra-T
network.

Page 46 of 302

3. DETERMINATION OF THE ARR for the CONTROL PERIOD from FY
2012-13 to FY 2015-16

3.1 Sales forecast
3.1.1 Approach

3.1.1.1 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.
b) Estimation of Changeover sales category-wise considering the impact of
Order in Case No. 151 of 2011 dated 22 August, 2012.
c) Estimation of RInfra-D own sales which is difference of the total sales and
Changeover sales.

3.1.2 Estimation of Total Sales

3.1.2.1 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.
b) Due to huge seasonal variations in demand, sales estimate for period October 2012
to March 2013 needed to consider the effect of seasonality. Hence, 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.
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.

3.1.2.2 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 2012-
13. 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 47 of 302

(MU) data. The category wise growth rates used by RInfra-D, for estimation of
total sales, are given in the table below:
Table 1: Total sales CAGR - Category wise Total Sales (%) as submitted by RInfra-D

Consumer Category Growth Rate (%)
LT Residential 2.99%
LT Commercial 4.36%
LT Industrial 2.65%
LT Advertisements 5.28%
LT Street Light 2.14%
LT Temporary 3.49%
HT Industrial 2.11%
HT Commercial 9.05%
HT Housing 2.06%

3.1.2.3 RInfra-D submitted that in its MYT Petition, it has adopted the approach of
forecasting total sales (i.e. total sales in license area, including change-over
consumers) based on historical growth rates, 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. RInfra-D also submitted that in the past, even in the
face of increasing urbanisation and commercialisation in the licensed area, 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.

3.1.2.4 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 48 of 302

Table 2: Total Sales as projected by RInfra-D of consumer connected to its Distribution
System (MU)

Consumer Category & Consumption Slab
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
LT I - Below Poverty Line 0.04 0.04 0.05 0.05
LT -I Residential (Single Phase) - - - -
0-100 1,793.89 1,847.45 1,902.61 1,959.42
101-300 1,356.10 1,396.59 1,438.28 1,481.23
301-500 286.85 295.42 304.24 313.32
501 and above 166.03 170.98 176.09 181.35
LT -I Residential Three phase - - - -
0-100 192.35 198.09 204.00 210.09
101-300 333.49 343.45 353.70 364.26
301-500 230.62 237.50 244.59 251.90
501 and above 565.33 582.21 599.60 617.50
LT II (a) - 0-20 kW 1,693.10 1,766.83 1,843.79 1,924.09
LT II (b) - 20-50 kW 243.13 253.72 264.77 276.30
LT II (c) - above 50 kW 603.50 629.79 657.22 685.84
LT III - LT Industrial upto 20 kW 182.57 187.42 192.39 197.50
LT IV - LT Industrial above 20 kW 493.85 506.95 520.41 534.22
LT-V : LT- Advertisements and Hoardings 3.22 3.39 3.57 3.76
LT VI: LT -Street Lights 56.51 57.73 58.96 60.23
LT-VII (A): LT -Temporary Supply Religious 1.01 1.04 1.08 1.12
LT-VII (B): LT -Temporary Supply Others 92.55 95.77 99.12 102.57
LT VIII: LT - Crematorium & Burial Grounds 1.17 1.20 1.24 1.27
LT IX: LT Agriculture 0.04 0.04 0.04 0.05
Total- LT Sales 8,295.52 8,575.82 8,865.95 9,166.27

HT I: HT-Industry 353.13 360.59 368.20 375.98
HTII : HT- Commercial 729.63 795.63 867.60 946.08
HT III: HT-Group Housing Society 38.63 39.42 40.24 41.07
HTIV : HT - Temporary Supply 4.27 4.35 4.44 4.53
HT - Railways (New Category) - 57.80 57.80 78.40
Total - HT Sales 1,125.66 1,257.80 1,338.28 1,446.05
Total 9,421.18 9,833.62 10,204.23 10,612.33

Page 49 of 302

3.1.2.5 Further, in reply to the Commissions query regarding basis of CAGR for LT VIII,
LT IX and HT IV as these were hard punched values in the model, RInfra-D
submitted vide its reply dated 11 February, 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, due to less volume, no specific trend in consumption as
connections are only temporary, etc. Hence, historical CAGR may not provide the
right picture while estimating sales for a longer period from FY 2012-13 to FY
2015-16. Hence sales for this category have been considered at a moderate
growth rate of 2% per annum. For LT VIII (Crematorium) and LT IX
(Agriculture), historical 5 year CAGR (FY 2006-07 to FY 2011-12) was relatively
high compared to growth rate considered in other categories. 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), 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 a moderate growth
rate of 3% has been considered, which is representative of the average increase
in sales (including both HT and LT) for two year period from FY 09-10 to FY 11-
12 for both these categories.

3.1.3 Estimation of Changeover Sales

3.1.3.1 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. 151 of 2011 dated 22 August, 2012.

3.1.3.2 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. For FY 2012-13, to estimate sales from existing changeover
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consumers, actual data for the period April to September 2012 was considered.
For rest of FY 2012-13, seasonality factor was applied to sales of April to
September 2012 to arrive at the sales for October 2012 to March 2013.
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 the period FY 2013-14 to FY 2015-16, 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.

b) Additional Changeover sales estimation: Estimation of Sales to additional
changeover consumers in all clusters only from the residential (0-300 units)
category. RInfra-D submitted that for the period April 2012 to September 2012,
around 37,500 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. Based on this trend, around 75,000 consumers can potentially migrate
from RInfra-D to TPC-D in the above mentioned categories. Hence, for MYT
Petition, RInfra-D assumed that 75,000 consumers will migrate/change over
each year from FY 2012-13 onwards to FY 2015-16. 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.
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
Additional Changeover consumers
FY
2012-13 (H2)
FY
2013-14
FY
2014-15
FY
2015-16
Total Number of consumers 37,500 75,000 75,000 75,000
Residential (1 Phase)
0-100 18,000 36,000 36,000 36,000
100-300 17,250 34,500 34,500 34,500
Residential (3 Phase)
0-100 750 1,500 1,500 1,500
Page 51 of 302

Additional Changeover consumers
FY
2012-13 (H2)
FY
2013-14
FY
2014-15
FY
2015-16
100-300 1,500 3,000 3,000 3,000

c) Pending applications sales estimation: RInfra-D submitted that it included
Sales pertaining to Pending applications as on August 22, 2012 in all 20 clusters.
Further, the effect of Order in Case No. 151 of 2011 was applied by RInfra-D
as:
d) Subsequent to 21 August, 2013, 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. 151 of 2011.
e) Subsequent to 21 August, 2013 till end of FY 2015-16 , 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.
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.
3.1.3.3 The sales projections for changeover consumers as submitted by RInfra-D, is given
in the table below:
Table 4: Changeover Sales as projected by RInfra-D (MU)
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16

LT -I Residential (Single Phase)
0-100 36.40 26.26 8.78 11.56
101-300 209.99 126.38 37.87 46.72
301-500 119.27 55.13 13.06 13.32
501 and above 107.03 49.48 11.72 11.95
LT -I Residential Three phase
0-100 2.21 1.36 0.57 0.69
101-300 49.12 27.95 10.94 12.53
301-500 84.64 42.28 14.53 14.82
501 and above 328.62 164.15 56.40 57.53
LT II (a) - 0-20 kW 410.31 194.28 51.84 52.87
LT II (b) - 20-50 kW 109.84 54.60 18.09 18.46
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FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
LT II (c) - above 50 kW 387.81 210.29 92.27 94.12
LT VI: LT -Street Lights - - - -
LT-VII (A): LT -Temporary Supply Religious - - - -
LT IX: LT Agriculture - - - -
Total- LT Sales 2,218.09 1,105.66 325.36 344.03

HT I: HT-Industry 271.85 131.28 39.13 39.91
HT - Railways (New Category) - - - -
Total - HT Sales 858.21 460.84 200.71 204.72
Total 3,076.30 1,566.50 526.07 548.76

3.1.3.4 RInfra-D submitted that it has projected a significant reduction in Changeover sales
from FY 2013-14 onwards, due to conversion of existing Changeover consumers in
FY 2012-13 to Switchover, i.e., connection to TPC-Ds distribution network.

3.1.4 Estimation of RInfra-D Own Sales

3.1.4.1 RInfra-D submitted it estimated its own sales as the difference between the Total
Sales and Changeover Sales. RInfra-D submitted that it projected additional
requirement from Versova- Andheri- Ghatkopar (VAG) Corridor metro Mass Rapid
Transit System (MRTS) project, being implemented by Mumbai Metro One Pvt.
Ltd. which is categorised in a new category HT Railways
3.1.4.2 Further, in reply to the Commissions query regarding Own Sales increasing from
past, based on the 5 year CAGR whereas there was reduction in the number of
consumers as projected, RInfra-D submitted vide its reply dated 12 February, 2013
that the number of RInfra-D consumers shows a declining trend in the second
Page 53 of 302

Control Period. RInfra-D submitted that this is primarily due to reduction of
consumers in the residential (0- 300) categories due to migration of consumers to
TPC-D. Also, the number of customers in the residential (0-300) categories is more
than thrice the number of consumers in other categories. Hence, even though the
number of consumers shows a reduction on absolute number basis, however on
percentage terms, the reduction in sales is small (less than 3% CAGR basis for the
period FY 2012-13 (H2) to FY 2015-16). Further, the contribution per consumer of
Residential (0-300) categories to total sales is significantly lower compared to other
categories. Therefore, the growth in sales in other categories is higher than the small
reduction in sales from residential (0-300) categories. Hence, due to the changing
sales and consumer mix of RInfra-D, there is an increase in sales despite the
reduction in overall number of consumers.
3.1.4.3 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
2012-13
FY
2013-14
FY
2014-15
FY
2015-16

0-100 1,757.50 1,789.51 1,819.24 1,849.63
101-300 1,146.10 1,117.73 1,078.48 1,037.34
301-500 167.59 173.76 180.15 186.75
501 and above 59.00 61.81 64.74 67.77
0-100 190.13 195.30 200.54 205.93
101-300 284.37 286.38 287.36 288.30
301-500 145.98 151.17 156.53 162.08
501 and above 236.72 247.02 257.70 268.77
LT II (a) - 0-20 kW 1,282.78 1,347.12 1,415.68 1,487.42
LT II (b) - 20-50 kW 133.29 141.20 150.00 159.23
LT II (c) - above 50 kW 218.03 233.99 253.45 274.34
Page 54 of 302

FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
LT IX: LT -Agriculture 0.04 0.04 0.04 0.05
Total- LT Sales
6,079.78 6,218.36 6,352.89 6,492.74

HT I: HT-Industry 81.28 83.30 85.37 87.49
Total - HT Sales 267.44 382.00 444.97 534.88
Total
6,347.22 6,600.37 6,797.87 7,027.62

3.1.4.4 Further, as a part of reply to data gaps raised by the Commission, RInfra-D
submitted provisional figures for month-wise Own Sales and revenue from sale of
power as 6192.32 MU and Rs. 4441.59 Crore (including incentives and
disincentives), for FY 2012-13.

3.1.5 Demand Side Management (DSM) Measures

3.1.5.1 RInfra-D submitted that it has continued its efforts to reduce the system demand and
energy consumption through DSM initiatives. The energy savings from various
DSM activities and its Own Sales considering impact of DSM, 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
Consumer
Category
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
T5 FTL Residential 0.15 0.15 0.15 0.15
Five Star Fans
Residential
(<500 units)
0.46 0.46 0.46 0.46
Five Star Split A/C LT II <20kW 0.06 0.06 0.06 0.06
Solar PV plant at LT II <20kW 0.01 0.01 0.01 0.01
Page 55 of 302

Program
Consumer
Category
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
MIDC
Five Star Refrigerators Residential - 1.54 1.54 1.54
Five Star Fans Ph II
Residential(<500
units)
0.18 0.60 1.44 1.44
Five Star Split A/C
Ph II
LT II <20kW and
LT III (<20 kW)
- 3.87 3.87 3.87
Total 0.86 6.69 7.53 7.53

Table 7: Own Sales as projected by RInfra-D (considering impact of DSM) (MUs)
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
LT -I Residential (Single Phase) - - - -
0-100 1,757.10 1,788.26 1,817.57 1,847.94
101-300 1,145.88 1,116.92 1,077.43 1,036.34
301-500 167.56 173.65 179.99 186.59
501 and above 59.00 61.79 64.71 67.74
LT -I Residential Three phase - - - -
0-100 190.09 195.17 200.36 205.75
101-300 284.31 286.17 287.09 288.04
301-500 145.95 151.06 156.39 161.93
501 and above 236.71 246.92 257.60 268.66
LT II (a) - 0-20 kW 1,282.71 1,343.51 1,412.06 1,483.80
LT II (b) - 20-50 kW 133.29 141.20 150.00 159.23
LT II (c) - above 50 kW 218.03 233.99 253.45 274.34
Total- LT Sales 6,078.92 6,211.67 6,345.36 6,485.21

HT I: HT-Industry 81.28 83.30 85.37 87.49
Page 56 of 302

FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Total - HT Sales 267.44 382.00 444.97 534.88
Total 6,346.36 6,593.68 6,790.34 7,020.09

3.1.5.2 Further, in response to the Commissions query regarding classifying 7.5 kW Solar
Power Plant at MIDC under DSM activities/schemes, RInfra-D submitted vide its
reply dated 11 February, 2013 that this project is planned on a pilot basis for study
purpose to demonstrate the feasibility of demand curtailment during peak hours.
RInfra-D submitted that if reasonable energy savings are achieved and there is
sufficient benefit of the project, 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.

3.1.6 Commissions Rulings

3.1.6.1 The Commission has accepted the RInfra-Ds submission of actual total retail sales
in its licence area as 6192.32 MU for FY 2012-13, since year is already over and
actual figures are available.
3.1.6.2 The Commission has noted that for period from FY 2013-14 to FY 2015-16, 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. 158 of 2011, which is as under:
In MU
Particulars FY 14 FY 15 FY 16
Own sales as per Business plan order of MERC (table
4.5, page 55)
6566 6797 7038
Own Sales as per RInfra-D MYT petition (table 38,
page 78)
6594 6790 7020
Difference 28 (7) (18)

3.1.6.3 Hence, the Commission has accepted and approves the Own Sales projected by
RInfra-D, which is as under:

Table 8: Own Sales approved by the Commission (considering impact of DSM) (in MUs)
Page 57 of 302

FY
2013-14
FY
2014-15
FY
2015-16
LT I - Below Poverty Line 0.04 0.05 0.05
LT -I Residential (Single Phase) - - -
0-100 1,788.26 1,817.57 1,847.94
101-300 1,116.92 1,077.43 1,036.34
301-500 173.65 179.99 186.59
501 and above 61.79 64.71 67.74
LT -I Residential Three phase - - -
0-100 195.17 200.36 205.75
101-300 286.17 287.09 288.04
301-500 151.06 156.39 161.93
501 and above 246.92 257.60 268.66
LT II (a) - 0-20 kW 1,343.51 1,412.06 1,483.80
LT II (b) - 20-50 kW 141.20 150.00 159.23
LT II (c) - above 50 kW 233.99 253.45 274.34
LT III - LT Industrial upto 20 kW 123.65 127.36 131.18
LT IV - LT Industrial above 20 kW 191.30 198.44 205.81
LT-V : LT- Advertisements and Hoardings 3.23 3.40 3.59
LT VI: LT -Street Lights 57.73 58.96 60.23
LT-VII (A): LT -Temporary Supply Religious 1.04 1.08 1.12
LT-VII (B): LT -Temporary Supply Others 94.93 98.26 101.70
LT VIII: LT - Crematorium & Burial Grounds 0.88 0.90 0.94
LT IX: LT -Agriculture 0.04 0.04 0.05
Total- LT Sales 6,211.67 6,345.36 6,485.21

HT I: HT-Industry 83.30 85.37 87.49
HTII : HT- Commercial 214.25 274.59 341.21
HT III: HT-Group Housing Society 22.49 22.96 23.45
HTIV : HT - Temporary Supply 4.17 4.25 4.34
HT - Railways (New Category) 57.80 57.80 78.40
Total - HT Sales 382.00 444.97 534.88
Total 6,593.68 6,790.34 7,020.09

3.1.6.4 For the purpose of estimation of Changeover Sales, 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 58 of 302

Table 9: Changeover Sales approved by the Commission in Case 179 of 2011 (in MU)
Category FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
LT 1 - Residential 1035.66 1136.46 1338.06 1539.66
LT II Commercial 1006.48
1070.69 1139.01 1211.69
LT Industrial 405.76 408.93 412.12 415.34
LT VII - Temporary Supply 0.88 0.88 0.88 0.88
LTV- Advertisement 0.18 0.18 0.18 0.18
HT I Industrial 287.23 307.08 328.31 351.00
HT II Commercial 574.66 605.55 638.10 672.40
HT III - Group Housing Society 17.12 17.12 17.12 17.12
HT VI - Temporary Supply 0.18 0.18 0.18 0.18
Grand Total 3328.14 3547.07 3873.95 4208.44

3.1.6.5 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.

3.2 Distribution Losses

3.2.1 Distribution Losses for period from FY 2012-13 to FY 2015-16

3.2.1.1 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. 124 of 2012 is 9.46% compared to
9.05% considered in the Business Plan Petition. 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.
3.2.1.2 RInfra-D further submitted that the actual distribution loss of FY 2011-12 of 9.46%
is higher than those considered in the Business Plan of 9.05% for the same period.
This is on account of the issues in accounting of changeover sales such as:

a) Large number of unbilled consumers by TPC-D.
b) No proper data sharing between RInfra-D and TPC-D and settlement of
Page 59 of 302

difference in readings.
c) Mismatch in reading cycles for several types of consumers between the two
licensees and issues relating to multiplying factors.

3.2.1.3 RInfra-D submitted that it has considered the actual loss level for FY 2011-12 as the
base level for the MYT Period. Further, for the purpose of estimation of Aggregate
Revenue Requirement and Tariff for the second MYT Control Period, no reduction
in losses of 9.46% is anticipated till FY 2013-14 but losses shall reduce by 0.05% in
the last two years to reach 9.36% in FY 2015-16.

3.2.1.4 RInfra-D further submitted status of the Commissions direction in Case No. 180 of
2011 regarding carrying out a study of technical losses in RInfra-D system. RInfra-
D 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. However, the study is submitted to the Commission on 29 May, 2013.
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,
it is presently not considered by the Commission in this Order. RInfra-D may
submit the report along with proper justification at the time of mid-term
performance review for the consideration of the Commission.
3.2.1.5 The detailed computation for distribution loss for FY 2011-12, as submitted by
RInfra-D in the True-up petition in Case No. 124 of 2012 is as given in the table
below:

Table 10: Actual Distribution Loss of FY12 as submitted by RInfra-D
Particulars FY 2011-12
Energy sold - RInfra-D own consumers (MU)
6,386.93
Energy consumption by Open Access consumers (MU) 8 .66
Energy sold Changeover consumers (MU) 2,654.73
Total (MU) 9,050.33
Distribution loss (%) 9.46%
T<>D Energy input (MU) 9,995.79

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3.2.1.6 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 2
nd
Control
Period
Loss Levels FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
Distribution Loss 9.46% 9.46% 9.41% 9.36%

3.2.1.7 In reply to the Commissions query regarding reduction of 0.05% in the Distribution
loss in the last two years, RInfra-D submitted vide its reply dated 12 February, 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). However, 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. Therefore, a moderate reduction in
distribution losses has been forecast in the last two years of the MYT Period.


3.2.2.1 The Commission in its Order dated 23 November 2012 in Case No. 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.
158 of 2011

Year wise FY2012-13 FY2013-14 FY2014-15 FY2015-16
Distribution Loss
reduction Trajectory
0% 0% 0.05% 0.05%

3.2.2.2 The Commission in its Order dated 23 November, 2012 in Case No. 158 of 2011
has approved distribution loss of FY 2012-13 as 9.05% based on actual distribution
loss of FY 2010-11, as at the time of issuance of the Order, the actuals of FY 2011-
12 were not available.
Page 61 of 302

3.2.2.3 Subsequently, the Commission in its Order dated 4 April 2013 in Case No. 124 of
2012 has approved distribution loss of FY 2011-12 as 9.46 % based on actual
distribution loss.
3.2.2.4 Hence, 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 2
nd
Control
Period
Year wise FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
Distribution Loss
Target 9.46% 9.46% 9.41% 9.36%

3.3 Energy Balance and Power Purchase Requirement
3.3.1 Energy Balance from FY 2012-13 to FY 2015-16

3.3.1.1 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. 180 of 2011, i.e.,
the wheeling losses for LT are considered at 9% and that for HT at 1.94% for all the
years in the second Control Period, as a part of its MYT Petition.

3.3.1.2 As a part of data gaps, the Commission enquired about the impact of RInfra-D
contention in Appeal No. 160 of 2012, i.e., impact of all distribution losses i.e.,
technical and commercial losses to its Own and Wheeling Consumers. In reply,
RInfra-D submitted the impact for FY 2009-10, FY 2010-11 and FY 2011-12 as
given in the table below:

Table 14: Impact of Appeal No. 160 of 2012 as submitted by RInfra-D (in Rs. Cr)
Impact Summary
FY
2009-10
FY
2010-11
FY
2011-12
Impact on own consumers due to additional power
purchase / lower increment to the Imbalance Pool
2.00 6.50 11.25
Impact on own consumers due to lower recovery of
wheeling charges from change-over consumers
0.26 0.92 3.06
Page 62 of 302

Impact Summary
FY
2009-10
FY
2010-11
FY
2011-12
Total 2.25 7.43 14.31
Cumulative Total 23.98

3.3.1.3 RInfra-D submitted that for FY 2011-12 it has considered transmission losses at
actuals. Further, from, FY 2012-13 onwards, the transmission losses are projected at
4.85% as considered by Commission in the Business Plan Order in Case No. 158 of
2011.

3.3.1.4 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
Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Sales (Own) 6,346.36 6,593.68 6,790.34 7,020.09
Sales (changeover) 3,076.30 1,566.50 526.07 548.76
Total 9,422.66 8,160.17 7,316.40 7,568.84
Distribution Loss (%) 9.46% 9.46% 9.41% 9.36%
Energy Input to the Distribution System 10,407.18 9,012.78 8,076.39 8,350.45

Table 16: Power purchase requirement for second Control Period (MU) as submitted by
RInfra-D
Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Migrated HT sales 858.21 460.84 200.71 204.72
HT Loss (%) 1.94% 1.94% 1.94% 1.94%
HT grossed up energy at T-D boundary 875.19 469.95 204.68 208.77
Migrated LT sale 2,218.09 1,105.66 325.36 344.03
LT loss (%) 9.00% 9.00% 9.00% 9.00%
LT grossed up energy at T-D boundary 2,437.46 1,215.01 357.53 378.06
Total T-D energy attributable to Migration 3,312.65 1,684.97 562.21 586.83
Page 63 of 302

Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Net T-D energy attributable to RInfra-D sale 7,094.53 7,327.82 7,514.18 7,763.61
InSTS losses (%) 4.85% 4.85% 4.85% 4.85%
Total power requirement of RInfra-D 7,456.15 7,701.33 7,897.19 8,159.34


3.3.2.1 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 1.94% for all the
years in the second Control Period, as submitted by RInfra-D in its MYT Petition.

3.3.2.2 Further, the Commission has observed that the transmission loss trajectory since
past few years has been decreasing. 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 (%)
Particulars
FY
2008-09
FY
2009-10
FY
2010-11
FY
2011-12
FY
2012-13*
Transmission Losses 4.88% 4.59% 4.31% 4.17% 4.19%
*Up to December 2012

3.3.2.3 As evident from the above Table, Transmission losses have been decreasing and
hence, 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. Further,
considering that a higher transmission loss level will result in over-estimating the
energy requirement and increase the burden on the consumers, for the purpose of
this Order, the Commission has considered Transmission losses at 4.17% (actuals
for FY 2011-12) for each year of the Control Period
Page 64 of 302

3.3.2.4 The Energy Balance and Power Purchase requirement for the period from FY 2013-
14 to FY 2015-16, approved by the Commission, is as under:

Table 18: Energy Balance approved by the Commission (MU)
Particulars FY 2013-14 FY 2014-15 FY 2015-16
Sales (Own)
6,594 6,790 7,020
Sales (changeover)
3,293 3,595 3,903
Total
9,887 10,385 10,923
Distribution Loss (%)
9.46% 9.41% 9.36%
Energy Input to the Distribution System
10920 11464 12051

Table 19: Energy Requirement approved by the Commission (MU)

Particulars UoM FY 13-14 FY 14-15 FY 15-16
Energy Input to the Distribution System MU 10920 11464 12051

Changeover HT sales MU 912 965 1021
HT Wheeling Loss % 1.94% 1.94% 1.94%
Changeover HT sales grossed up to at
Distribution Periphery
MU 930 984 1041

Changeover LT sales MU 2382 2630 2883
LT Wheeling Loss % 9.00% 9.00% 9.00%
Changeover LT sales grossed up to at
Distribution Periphery
MU 2617 2890 3168
Total T-D energy attributable to
Changeover Sales
MU 3547 3874 4208

Net energy attributable to RInfra-D retail
sales at Distribution Periphery
MU 7373 7590 7843
InSTS losses % % 4.17% 4.17% 4.17%
Total Power Purchase Requirement of
RInfra-D (MU) at Transmission periphery
MU 7694 7920 8184

3.4 Power Procurement Plan and Expenses

Page 65 of 302

3.4.1 Estimation of Base and Peak Load

3.4.1.1 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.
Using the energy input at G<>T in MU forecast in the Business Plan, the same is
converted to average demand in MW. The Maximum demand corresponding to
RInfra-D customers is then obtained by applying a representative system load factor
to the average demand. The load factor for the period from FY 2012-13 to FY 2015-
16 is estimated based on the average of the load factors for the five year period from
FY 2006-07 to FY 2011-12.
Base Load is considered as the lowest requirement as per the Load Duration Curve
or it could be considered as the load, which is incident on the system for majority of
time. However, RInfra-D submitted that its load duration curve varies significantly
between day and night hours and over seasons. For instance in FY 2011-12, in
winters, load goes down to as low as 350-400 MW in late night hours, whereas in
peak summers, minimum load would hover around 900 MW. Monsoon season
requirement is in between the two. Hence, there is no single Base Load or Peak
Load value for RInfra-Ds system.
3.4.1.2 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. Further there are large
variations in the short term power rates which in turn may result in the increase in
the power purchase cost.
3.4.1.3 RInfra-D submitted that it has to plan the power purchase such that Consumers of
Mumbai are assured of continuous supply, the surplus and shortfall will be
manageable during the real time operation period and the entire operation is cost
effective.
3.4.1.4 Base Load Generation Capacity assures the reliable and Continuous availability of
supply. 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.
Page 66 of 302

3.4.1.5 RInfra-D submitted that from the above figure that the surplus/shortfall position is
optimal i.e., @ 68% if the capacity is contracted around the average load. 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. Further,
RInfra-D has considered 85% of assured availability from the generators.
3.4.1.6 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
Power Purchase requirement
(MU)
7456.15 7701.33 7897.19 8159.34
System Load Factor (%) 68% 68% 68% 68%
Peak Demand (MW) 1251.7 1292.86 1325.74 1369.75
Average Demand (MW)
=Base Demand (MW))
851.16 879.15 901.51 931.43
DTPS Capacity 467# 451* 451* 451*
Additional Capacity
requirement (MW) (Base
Demand Base capacity
contracted)
384
(met through
contracts of
WPCL,AMENPL
and VIPL)
428
(met through
contracts of
WPCL,
AMENPL
and VIPL)
451 481
Capacity to be contracted,
considering 85% availability
- - 530 566
# 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 8.5%, plus actual of FGD as projected in
MYT Petition of RInfra-G (Case No. 1 of 2013)

3.4.1.7 RInfra-D submitted that the power procurement for meeting base load would be
done through a mix of long-term contracts, and medium-term contracts. RInfra-Gs
Dahanu Thermal Power Station would cater to a part of the base load requirement of
RInfra-D. For the period FY 2013-14, rest of the Base demand would be met
through existing medium -term contracts with Wardha Power Company Limited,
Page 67 of 302

Abhijeet MADC and VIPLs Butibori plant. These medium-term contracts are valid
till FY 2013-14.

3.4.1.8 In order to meet the base load requirement from FY 2014-15 onwards, RInfra-D
submitted that it has entered into a long-term contract with VIPL for procurement of
600 MW of power. The plant is located at Butibori, Nagpur. After subtracting
auxiliary consumption, the net availability from VIPL would be approximately 540
MW.

3.4.1.9 RInfra-D further submitted that the requirement over and above the base load i.e.,
the peaking requirements of power would be met through short-term purchases from
the external market as well as separate contracts with traders, Power Exchanges,
merchant and captive power plants as well as inter-utility transfer through the state
imbalance pool. Renewable energy will also be procured to meet Renewable
Purchase Obligation (RPO) targets as specified by the Commission, while also
adding to purchases made to meet base and peak load requirements. Renewable
energy from Solar has been considered by RInfra-D towards meeting peak load
requirement.

3.4.1.10 Further, in reply to Commissions query regarding consideration of different System
Load Factor of 68% for Power Procurement Plan in the MYT Petition, while 72%
was considered in the Business Plan, RInfra-D submitted vide its reply dated 12
February, 2013 that its system load factor is about 68.49% considering past few
years data and it is only to arrive at Peak Demand from Average Demand.
However, in the MYT Petition, the Base Demand is considered same as Average
Demand and thereafter, 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. In that context, as the Peak Demand is
not being used to derive Base Demand, the value of load factor is not very relevant.
3.4.2 Procurement from Dahanu TPS (DTPS)

Page 68 of 302

3.4.2.1 RInfra-D submitted that RInfra-Gs Dahanu Thermal Power Station shall cater to its
base load requirement. It has entered into a 10-year Power Purchase Arrangement
with generating station at Dahanu (DTPS or RInfra-G). The arrangement has been
approved by the Commission vide its Order in Case No. 8 of 2008. 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.

3.4.2.2 RInfra-D submitted that for the period from FY 2012-13 to FY 2015-16, the energy
availability and cost of power purchase from DTPS is based on the projections
provided in RInfra-G MYT Petition in Case No. 1 of 2013. The referred Petition of
RInfra-G contains estimated energy availability from DTPS for FY 2012-13 based
on 9 month actuals and thereafter, energy availability has been determined
considering 500 MW installed capacity, projected auxiliary consumption and
95.90% availability.

3.4.2.3 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 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
Capacity available (MW) 500 500 500 500
Availability (%) 95.89 95.9 95.9 95.9
Auxiliary Consumption (%) 9.79 9.83 9.83 9.82
Energy availability (MU) 3997.37 3787.6 3787.6 3,798.13*
*One day extra generation due to leap year
Table 22: Cost of Power Purchase from DTPS as submitted by RInfra-D
DTPS
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Fixed Charges (Rs. Crore) 216.61 436.43 328.79 344.92
Rate of Energy Charges (Rs. per kWh) 2.72 2.87 2.93 2.98
Total Variable Cost (Rs. Crore) 1,087.06 1,088.59 1,109.10 1,133.63
Total Cost of Power (Rs. Crore) 1,303.67 1,525.02 1,437.90 1,478.55

Page 69 of 302

3.4.2.4 Subsequently, in reply to the details sought regarding the actual power purchase cost
for FY 2012-13, RInfra-D provided the actual power purchase cost from DTPS. The
Commission has considered the actual power purchase cost for FY 2012-13 from
DTPS as submitted by RInfra-D.
3.4.2.5 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 Commissions Order dated 13
June, 2013 in Case No. 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.
3.4.2.6 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
Power purchase from
RInfra-G
Unit FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
Approved after
Provisional Truing
up
Approved Approved Approved
Power Purchase Quantum MU 3,994.95 3,787.60 3,787.60 3,798.13
Power Purchase Cost Rs. Crore 1,370.28 1,309.68 1,400.66 1,449.27
Average Rate Rs./kWh 3.43 3.46 3.70 3.82

3.4.3 Procurement from Medium term Contracts (upto FY 2013-14)

3.4.3.1 RInfra-D submitted that it has existing medium-term power procurements contracts
with Wardha Power (WPCL), Abhijeet MADC and Vidarbha Industries Power
Limited (VIPL).
3.4.3.2 RInfra-D submitted that it has considered power purchase from WPCL in
accordance with specified quantum and at the rate adopted by the Commissions
Order under Case No.85 of 2011 dated 1 July, 2011.

Page 70 of 302

3.4.3.3 Further, RInfra-D submitted that it has considered the power purchase from
Abhijeet MADC for the period 1 July, 2011 up to 31 March, 2014 at the rates
adopted by the Commission vide its Order under Case No.84 of 2011 dated 1 July,
2011.
3.4.3.4 In case of power purchase from VIPL, RInfra-D submitted that it has considered
procurement of 134 MW from 1 April, 2012 up to 31 March, 2014 in accordance
with the judgment of the Honble ATE in Appeal No. 106 of 2011.
3.4.3.5 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) 1,935.96 1,935.96 - -
Abhijeet (MU) 409.53 409.53 - -
VIPL (MU) 997.76 997.76 - -

3.4.3.6 RInfra-D further submitted that WPCL has filed a Petition before the Commission
bearing Case No. 39 of 2012 wherein purported claim of Rs 27.6 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; 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.
3.4.3.7 RInfra-D submitted that it has executed PPA with WPCL dated 4 June, 2010, for the
period commencing from 1 April, 2011 to 31 March, 2014 for the Contracted
Page 71 of 302

Capacity of 260 MW. As per Articles 10.1.1 and 10.2 of PPA, 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.
Such taxes should have been introduced 7 days prior to the Bid Deadline.

3.4.3.8 RInfra-D submitted that it has contended before the Commission that in view of the
provisions in the PPA, it is liable to pay only the non-escalable capacity and energy
charges. Consequently, 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.
3.4.3.9 The Commission, during the hearing held in the Case No. 39 of 2012 dated 2
November, 2012, directed RInfra-D to immediately make payment of Rs. 10 Crore
and subsequently make payment which is undisputed as per RInfra-D. As against
the total claim of Rs. 27.6 Crore for FY 2011-12, RInfra-D submitted that it has
made payment of Rs. 19.5 Crore as undisputed amount till date. As the payment has
been made in FY 2012-13 and included in the Fuel Adjustment Cost (FAC) of FY
2012-13, RInfra-D has considered the same in the present MYT Petition.
3.4.3.10 RInfra-D submitted that further claim of Rs. 26.7 Crore was raised by WPCL for the
period April 2012 to September 2012, against which RInfra-D has made payment of
Rs 7.23 Crore. This matter is sub-judice before Commission for adjudication and
any future payments will be based on the outcome of Case No. 39 of 2012. RInfra-D
submitted in its MYT Petition that the same liability is expected for the second half
of FY 2012-13. Hence, an additional payment of Rs. 14.46 Crore is considered in
the MYT Petition for FY 2012-13, over and above the payment of Rs. 19.5 Crore
(pertaining to FY 2011-12).
3.4.3.11 RInfra-D submitted that, since power will be off taken from WPCL during FY
2013-14 as well, the same change in law impact will cause an additional liability of
Rs. 14.46 Crore for FY 2013-14 as well. The same is accordingly added to the
power purchase cost of FY 2013-14.
Page 72 of 302

3.4.3.12 As a part of data gaps replies, RInfra-D submitted that it has entered into Medium-
Term PPA with Wardha, Abhijeet and VIPL pursuant to competitive bidding
process undertaken as per guidelines issued by the Ministry of Power, GoI. PPAs
entered into have been approved by the Commission and Tariffs have been adopted
as per Section 63 of the Act.
3.4.3.13 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 788.98* 595.25**
Abhijeet 122.9 101.15 - -
VIPL 394.22 368.27 - -
Variable Cost (Rs. per kWh)
Wardha 1.02 1.03 - -
Abhijeet 1.81 1.88 - -
VIPL 1.04 1.44 - -
* includes fixed cost of 755.02 Cr and a charge due to change in law of 33.96 Cr
** includes an additional liability of 14.46 Cr due to change in law

Table 26: Cost of Power Procurement from Medium Term Contracts (Rs. Crore) as
submitted by RInfra-D
Source FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
Wardha 986.45 793.68 - -
Abhijeet 197.07 177.94 - -
VIPL 497.78 511.75 - -

3.4.3.1 Subsequently, in reply to the details sought regarding the actual power purchase cost
for FY 2012-13, RInfra-D provided the actual power purchase cost from Wardha,
Abhijeet and VIPL. The Commission has considered the actual power purchase cost
for FY 2012-13 from these sources as submitted by RInfra-D.
3.4.3.2 The Commission noticed that RInfra-D has considered the rates for power purchase
from Wardha Power Company Ltd., Abhijeet MADC Nagpur and VIPL as adopted
by the Commission and accordingly approves the same.
Page 73 of 302

3.4.3.3 The summary of the energy availability and cost of power purchase from Wardha
Power Company Ltd., 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, Abhijeet and VIPL
Particulars

Unit WPCL Abhijeet VIPL
Approved
after
Provisional
Truing up
Approved Approved
after
Provisional
Truing up
Approved Approved
after
Provisional
Truing up
Approved
FY 2012-13 FY 2013-14 FY 2012-13 FY 2013-14 FY 2012-13 FY 2013-14
Power Purchase
Quantum MU 2,039.49 1,935.96 441.97 409.53 1,001.05 997.76
Power Purchase
Cost
Rs.
Crore 1,001.85 793.68 204.27 177.94 510.05 511.75
Average Rate Rs./kWh 4.91 4.10 4.62 4.35 5.10 5.13

3.4.4 Procurement from Vidarbha Industries Power Limited (VIPL)

3.4.4.1 RInfra-D submitted that since the existing medium term contracts are applicable till
FY 2013-14, for the period FY 2014-15 onwards, there would be a significant
shortfall in base load supply without additional power procurement. The additional
quantum required in FY 2014-15 is about 530 MW.
3.4.4.2 To meet this shortfall, R-Infra D submitted that it is considering to procure 600 MW
from Vidarbha Industries Power Limited (VIPL) from FY 2014-15 onwards. Net
energy availability from VIPL after subtracting auxiliary consumption would be
about 544 MW. A Petition for approval of Long Term PPA between RInfra
(Mumbai Distribution) and VIPL and determination of Provisional Tariff for VIPLs
Butibori Plant was submitted on 28 December, 2012 to the Commission bearing
Case No. 2 of 2013.

3.4.4.3 RInfra-D submitted following key reasons for procuring power from VIPL:

Page 74 of 302

a) Power procurement of the utility has to be from a reliable and competitive source.
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. Further,
the tariff has also been found to be competitive with Case 1 tariffs discovered in
Maharashtra and more recently in UP.
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.
d) Any bid process to procure power by competitive bidding would have a lead time
of 48-60 months, whereas the long-term supply from VIPL would commence
from 1 April, 2014.
e) RInfra has indirect majority ownership of Butibori project. This ownership
structure provides RInfra a greater control over VIPL functioning and secures
stronger contractual commitment on the part of VIPL. Thus reliability of supply
from Butibori project of VIPL will be comparable to that from DTPS. Combined
with DTPS, supply from Butibori ensures reliable and long-term supply and hence
energy security for millions of consumers in RInfra-D license area in Mumbai.
f) VIPLs offer to RInfra-D for supply under tariff determined by the Commission
under Section 62 of EA, 2003 also ensures that benefit of lower price of power is
transparently passed on to retail consumers. In a domestic coal supply constrained
market, this aspect completely aligns VIPL offer with interests of millions of
RInfra electricity consumers in Mumbai.
3.4.4.4 As regards to the Commissions query regarding power purchase from VIPL,
RInfra-D replied as given below:
a) On account of absence of any performance track record available for VIPL, the
availability for the station has been projected by RInfra-D in accordance with
MERC MYT Regulations, 2011 i.e., 85% during FY 2014-15 and FY 2015-16.
b) Unit-I synchronisation achieved on 25 June, 2012 and COD achieved dated 4
April, 2013. Further, from Unit-1, no infirm power was purchased by RInfra-D
during trial period during FY 2012-13. However, RInfra-D submitted that VIPL
sold infirm power for the period from31 March, 2013 to 4 April, 2013 to RInfra-
D, for which SLDC has not yet finalised the FBSM because of which no revenue
Page 75 of 302

realisation happened to VIPL.
c) Unit-II synchronisation achieved on 2 January, 2013 and COD is likely to happen
shortly. Further, RInfra-D submitted that it would not be possible to estimate the
generation for Unit-II during trial period.
d) Annual Fixed Charges is Rs. 891.04 Crore and Rs. 876.92 Crore for FY 2014-15
and FY 2015-16 respectively for installed capacity of 600 MW.
e) Energy Charge is Rs. 1.22/kWh and Rs. 1.30/kWh for FY 2014-15 and FY 2015-
16 respectively.

3.4.4.5 The summary of Power Purchase from VIPLs 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 FY 2014-15 FY 2015-16
Capacity available (MW) 600 600
Availability (%) 85% 85%
Auxiliary Consumption (%) 9.40% 9.40%
VIPL 4,047.82 4,058.91*
*One day extra generation due to leap year

Table 29: Power Procurement Cost from VIPL for FY 15 & FY 16 as submitted by
RInfra-D

Source FY 2014-15 FY 2015-16
Capacity charge (Rs Cr.) 891.04 876.92
Energy Charge( Rs per kWh) 1.22 1.3
Total Cost (Rs Cr.) 1384.87 1404.58

3.4.4.6 As regards the procurement of power from VIPLs Butibori Plant for FY 2014-15
and FY 2015-16, the Commission in its Order dated 23 February, 2013 in Case No.
02 of 2013 stipulated as under:
In view of the above, the Commission hereby accords its in-principle approval to
the Power Purchase Agreement (PPA) between RInfra-D and VIPL for
Page 76 of 302

procurement of 300 MW power on long-term basis from Unit 2 (IPP) of VIPLs
Power Station as submitted by the Petitioner on 15 February, 2013 with
modifications to be made in the PPA as per the directions given by the
Commission in Para 44 of the Order. 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 VIPLs Power Station after
incorporating the above-stated modifications, as compliance of this order within
one month from the date of this Order.

3.4.4.7 In accordance with the decision of the Commission for in-principle approval of PPA
for 300 MW Unit-2 on long-term basis, the Commission has considered the
procurement of power from Unit-2 for the period from FY 2014-15 to FY 2015-16.
As regards the purchase rate for power from VIPL, the Commission in the said
Order ruled as under:

the Commission is prima facie of the view that the PPA between RInfra-
D and VIPL with tariff to be determined by the Commission in accordance
with the MERC MYT Regulations, on Cost plus basis by applying critical
prudence checks while examining the tariff proposal, will help RInfra-D to
meet the energy requirement of its consumers. As the PPA between RInfra-
D and VIPL provides for determination of tariff in accordance with MERC
MYT Regulations, the Petition submitted by RInfra-D and VIPL for
approval of PPA complies with Regulation 25.2 (c) of MERC MYT
Regulations, 2011.
3.4.4.8 Accordingly, 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.
3.4.4.9 As regards the procurement of power from Unit-1 of VIPL, the Commission in the
above mentioned Order ruled as under:
During the hearing before the Commission Shri. Bushan Gagrani, CEO
of MIDC, referred to an MOU for setting up of a 130 MW Group Captive
Page 77 of 302

Power Project (subsequently converted into a 300 MW GCPP). 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, in view of the bid conditions. This
Commission has not been called upon, through the present Petition, to
decide the issue of conversion of Unit 1 from a Group Captive Power
Plant to an Independent Power Project. Hence, according approval of
sale of power from Unit 1 to RInfra-D, may amount to changing the
character of the power plant from a Group Captive Power Plant to an
Independent Power Project. During the hearing, it was submitted on
behalf of the Petitioners that approval may be given only Case No. 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. Considering these
facts and submissions made by MIDC and the Petitioners regarding
conversion of Unit 1 from GCPP to IPP, the Commission has, at this
stage, considered the PPA for supply of power from Unit 2 of VIPL to
RInfra-D. The Petitioners may file an appropriate application /Petition
for approval of supply of power from Unit 1 of VI PL to RI nfra-D, once
these issues are sorted out.
3.4.4.10 Subsequently, MIDC vide its letter dated 18 May, 2013 submitted as under:
In view of the facts and status mentioned in VIPLs letter dated
18/01/2013, the board item was placed before 349
th
Board meeting of
MIDC held on 08/02/2013. 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.
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.
On obtaining the legal opinion and conclusion of meeting dated
22/05/2013 with industries/industry associations, the issue was discussed
Page 78 of 302

in 351
st
Board Meeting held on 24/05/2013. The Board has accorded its
approval for conversion of 300 MW GCPP into an IPP.
3.4.4.11 Considering the fact that MIDC has submitted that its Board has accorded its
approval for conversion of 300 MW GCPP into an IPP, the Commission has
considered the purchase of power by RInfra-D from 300 MW Unit-1 for FY 2014-
15 to FY 2015-16, for the purpose of estimation of Power Purchase availability.
Further, the Commission has provisionally considered the rate of power purchase
from VIPL Unit-1 based on the rates as submitted by RInfra-D, on ad-hoc basis,
subject to final approval by the Commission.
3.4.4.12 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
Power Purchase Quantum MU 4,047.82 4,047.82 4,058.91 4,058.91
Power Purchase Cost Rs. Crore 1,384.87 1,384.87 1,404.58 1,404.58

3.4.5 Procurement from Renewable Sources

3.4.5.1 RInfra-D submitted that the quantum of the renewable energy purchased to meet the
Renewable Purchase Obligations (RPO), is in line with the MERC (Renewable
Purchase Obligation, Its Compliance and Implementation of REC Framework)
Regulations, 2010, which specifies the following percentage of minimum purchases
from renewable energy:
7.1 Every Obligated Entity shall procure electricity generated from
eligible renewable energy sources at the percentages as per the following
schedule:

Page 79 of 302

Year
Minimum Quantum of purchase (in %) from
renewable energy sources (in terms of energy
equivalent in kWh)
Solar Non- Solar
(other RE)
Total
2010-11 0.25% 5.75% 6.0%
2011-12 0.25% 6.75% 7.0%
2012-13 0.25% 7.75% 8.0%
2013-14 0.50% 8.50% 9.0%
2014-15 0.50% 8.50% 9.0%
2015-16 0.50% 8.50% 9.0%

Provided that Distribution Licensee(s) shall meet 0.1% 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 0.2% 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.

3.4.5.2 Based on the above mentioned Regulations, 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
Gross Input (MU) 7,456.15 7,701.33 7,897.19 8,159.34
Solar RPO (%) 0.25% 0.50% 0.50% 0.50%
Solar Obligation (MU) 18.64 38.51 39.49 40.80

3.4.5.3 RInfra-D further submitted that it has considered the impact of the Order in Case
No. 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, FY 2011-12 and FY 2012-13 cumulatively before 31
March, 2013.
3.4.5.4 RInfra-D submitted the shortfall in Solar RPO compliance in FY 2010-11 and FY
2011-12 as under:

Page 80 of 302

Table 32: Cumulative Shortfall in Solar RPO in FY 11 and FY 12 as submitted by
RInfra-D
Financial
Year
Gross Input
(As per Final
True-Up
Petition) (MU)
Solar
RPO
Target
(%)
Solar RPO
Target
(MU)
Actual
Procurement
(including
Solar REC)
(MU)
Shortf
all
(MU)
FY 2010-11 8637.48 0.25 21.59 Nil 21.59
FY 2011-12 7524.02 0.25 18.81 0.46 18.35
Cumulative
Shortfall
39.94

3.4.5.5 RInfra-D submitted that in order to meet its Solar Renewable purchase obligations,
it has signed an Energy Purchase Agreement (EPA), dated 28 March, 2011, for
purchase of energy generated from the 40 MW solar power (PV) plant of Dahanu
Solar Power Private Limited (DSPPL). The plant is located in Rajasthan with
delivery point at Maharashtra State periphery. The delivered tariff is estimated as
per Tariffs approved by the Commission in its Order in Case No. 20 of 2010.

3.4.5.6 As per the Commissions query regarding difference in projected purchase of 60
MU of Solar Power per year for the MYT period from DSPPLs 40 MW Solar
power plant, while in the Business Plan, it was projected as 42 MU per year, RInfra-
D submitted vide its reply dated 12 February, 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. However, as the same would lead to excess procurement
over target from FY 2013-14 onwards, RInfra-D had, for the purposes of the
Business Plan, 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. Further, 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 81 of 302

Table 33: Actual month-wise generation from DSSPL as submitted by RInfra-D
Month
Actual Generation
(in MU)
April 2012 3.17
May2012 5.10
June 2012 4.90
July 2012 4.84
August 2012 3.61
September 2012 4.79
October 2012 6.35
November 2012 3.72
December 2012 5.37
Total 41.86

Table 34: Solar Power Cost Summary as submitted by RInfra-D for the second Control
Period
Solar Power Cost
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Solar Purchase from DSPPL (MU) 60.00 60.00 60.00 60.16
Solar Tariff (Rs. per kWh) 17.91 17.91 17.91 17.91
Solar Power purchase cost (Rs Cr.) 107.46 107.46 107.46 107.75

Solar Obligation including shortfall (MU) 58.22 38.51 39.49 40.80
Solar Shortfall in previous years (MU)
Deficit/(Surplus) (MU) (1.78) (21.49) (20.51) (19.36)

3.4.5.7 Further, RInfra-D submitted that for the period from FY 2012-13 to 2015-16, it is
expected that there will be a surplus in solar power purchase w.r.to, the solar
purchase obligation for the respective year. The surplus is expected to be a result of
the impact of migration of consumers to TPC-D. Due to migration of consumers,
RInfra-D own sales and power purchase requirement is lower than estimated at the
time of contracting with DSPPL. RInfra-D further added that over contracting is
prudent considering uncontrollable events such as increase in sales, reduction in
output due to bad weather or malfunctioning in solar panels, etc.
3.4.5.8 RInfra-D submitted its Non Solar Purchase as per MERC (Renewable Purchase
Obligation, 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 82 of 302

Table 35: Non Solar Obligation as submitted by RInfra-D (MU)

Non Solar Obligation
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Gross Input (MU) 7,456.15 7,701.33 7,897.19 8,159.34
Non Solar RPO (%) 7.75% 8.50% 8.50% 8.50%
Non Solar Obligation (MU) 577.85 654.61 671.26 693.54

3.4.5.9 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
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Reliance Innoventures Pvt. Ltd. 90.67 90.67 90.67 90.91
AAA Sons Enterprise 6.80 6.80 6.80 6.82
Jindal Steel and Power Limited 31.54 31.54 31.54 31.62
Tembhu Power Private Limited 8.00 8.00 8.00 8.00
Reliance Clean Power Pvt. Ltd 39.42 78.84 78.84 79.06

Table 37: Power Purchase rate with Existing Non Solar Contracts as submitted by
RInfra-D (Rs/kWh)
Power Purchase Rate
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Reliance Innoventures Pvt. Ltd. 3.95 4.10 4.25 4.40
AAA Sons Enterprise 3.95 4.10 4.25 4.40
Tembhu Power Private Limited 4.26 4.26 4.26 4.26
Reliance Clean Power Pvt. Ltd 5.67 5.67 5.67 5.67

3.4.5.10 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). The purchase price of REC is
established based on the actual purchase of REC for the first six months of FY
Page 83 of 302

2012-13. RInfra-D submitted month-wise details of actual RECs purchased during
FY 2012-13 which amounted to Rs. 90.81 Crore. 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- Solar REC procurement as submitted by RInfra-
D
Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Non- Solar RPO requirement (MU) 577.85 654.61 671.26 693.54
Non-Solar Contracted (MU) 186.93 226.35 226.35 226.95
REC requirement (MU) 460.93 428.26 444.91 466.59
Cost of REC (Rs per kWh) 1.85 1.85 1.85 1.85
Total Cost of REC purchase
(Rs Cr)
85.49 79.43 82.52 86.54

3.4.5.11 Further, in response to the Commissions query regarding provision in PPA for
applicability of rebate from Renewable Energy Sources (RES) for payment within
the due date, 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 Discount Clause
AAA Sons
Discount of 2% on total bill prompt payment within 10 days from
date of receipt of the bill
Reliance Innoventures No Discount
JSPL
Discount of 1.25% on total bill prompt payment within 7 days
from date of receipt of the bill
Tembhu Hydro Discount of 1.25% on total bill prompt payment within 15 days
Reliance Clean Power
Dahanu Solar Power

3.4.5.12 Further, vide the Business Plan Order in Case No. 158 of 2011, RInfra-D was
directed to submit Accelerated Depreciation details for power purchase from
Reliance Clean Power Pvt. Ltd. as follows:
Page 84 of 302

.... RInfra-D at the time of filing of MYT Petition, may submit necessary
documentary evidence to ascertain whether this project has availed AD
benefit or not and based on prudence check, the Commission may
consider the same at the finalisation of MYT Order.
In response to the above direction, RInfra-D submitted that Reliance Clean Power
Pvt. 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, as per
PPA terms, 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. Since this project is yet to achieve COD, the AD certificate
has not been provided yet.
3.4.5.13 Subsequently, in reply to the details sought by the Commission for FY 2012-13,
RInfra-D provided the actual power purchase cost from renewable sources including
solar. The Commission has considered the actual power purchase cost for FY 2012-
13 from these sources as submitted by RInfra-D for provisional truing up purpose.
The Commission has provisionally considered the power purchase expenses,
however, the same would be trued up subject to the verification and compliance of
RPO targets for FY 2012-13.
3.4.5.14 As regards the purchase of solar power in excess for RPO targets for the period
from FY 2013-14 onwards, the Commission does not wish to burden the consumers
with undue cost burden estimated approximately as Rs 109.56 Crore for second
Control Period, 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, its Compliance and Implementation of REC
Framework) Regulations 2010. However, 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.
3.4.5.15 The summary of the solar purchase as approved by the Commission is shown in the
Table below:
Page 85 of 302

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
Provisional Truing
up
Power Purchase
Quantum MU 60.13 38.47 39.60 40.92
Power Purchase
Cost Rs. Crore 107.69 68.90 70.92 73.29

3.4.5.16 As regards the purchase of non-solar power, the Commission observed that RInfra-
D has projected to purchase RECs to meet the short-fall of non-solar RPO. 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. 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
Unit FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
Approved after
Provisional Truing
up
Power Purchase
Quantum MU 136.09 226.35 226.35 226.95
Power Purchase
Cost Rs. Crore 55.79 106.33 108.27 110.49

Page 86 of 302

3.4.5.17 Further, the Commission observed that RInfra-D has also proposed to purchase non-
solar RECs to meet the shortfall of non-solar RPO target for FY 2012-13 to FY
2015-16. In response to query of the Commission regarding actual purchase of
RECs during FY 2012-13, 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.
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. Moreover, considering the fact that on account of shortfall to meet RPO,
RECs are being purchase in certificate form, 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. The
Commission further directs RInfra-D to provide the cost benefit analysis and other
associated benefits for purchase of RECs from Power Exchanges.
3.4.5.18 Accordingly, for the purpose of provisional truing up for FY 2012-13, the
Commission has considered the actual purchase of RECs during FY 2012-13.
Further, for the period from FY 2013-14 to FY 2015-16, the Commission has
presently considered the shortfall in non-solar RPO to be met through purchase of
RECs, subject to prudence check. As regards the cost of purchase of RECs, the
Commission has considered the average Market Clearing Price of Rs.
1500/Certificate for past 10 months trade data. Further, the Commission has
considered Rs. 20/Certificate towards the fees of Power Exchanges based on the
actual trade data for FY 2012-13. 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 87 of 302

Table 42 Purchase of Non-Solar RECs approved by the Commission for FY 2012-13 to FY
2015-16
Power purchase to
meet Non-Solar RPO
Unit FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
Approved after
Provisional
Truing up
RPO shortfall MU 504.75 427.63 446.86 468.69
Cost of Purchase of REC Rs. Crore 90.81 65.00 67.92 71.24

3.4.6 Short Term bilateral Power Purchases

3.4.6.1 RInfra-D in its MYT Petition has projected the hourly demand and generation
availability from base load sources and determined, on an hourly basis, the surplus
and shortfall in energy terms. The summary of daily load profiling, 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)
Hour
FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
Deficit Surplus Deficit Surplus Deficit Surplus Deficit Surplus
1.00 25.76 (30.74) 33.77 (21.65) 24.20 (33.32) 29.79 (28.85)
2.00 10.70 (49.20) 15.72 (37.99) 9.66 (54.06) 12.77 (48.50)
3.00 4.29 (61.96) 7.15 (49.22) 3.58 (68.29) 5.39 (62.08)
4.00 1.34 (70.71) 3.36 (57.51) 0.91 (78.00) 1.92 (71.41)
5.00 0.34 (73.85) 1.42 (59.85) 0.20 (81.68) 0.56 (74.57)
6.00 0.10 (70.52) 0.71 (55.96) 0.02 (78.24) 0.16 (70.78)
7.00 0.21 (57.55) 0.69 (42.41) 0.05 (64.39) 0.13 (56.36)
8.00 0.44 (47.67) 1.58 (32.82) 0.33 (53.89) 0.60 (45.64)
9.00 2.07 (27.69) 7.40 (16.28) 1.91 (32.51) 3.68 (24.95)
10.00 8.38 (15.16) 18.24 (7.61) 7.54 (18.09) 12.31 (12.81)
11.00 23.18 (7.96) 37.02 (3.64) 22.10 (9.31) 29.95 (6.34)
12.00 31.51 (6.57) 46.50 (3.06) 30.51 (7.38) 39.50 (5.17)
13.00 29.08 (8.26) 43.27 (4.17) 27.86 (9.14) 36.53 (6.65)
14.00 19.33 (14.22) 30.99 (8.09) 17.70 (15.55) 24.66 (11.96)
15.00 21.52 (15.96) 33.22 (9.87) 20.00 (17.40) 27.05 (13.88)
Page 88 of 302

Hour
FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
Deficit Surplus Deficit Surplus Deficit Surplus Deficit Surplus
16.00 24.77 (16.46) 36.78 (10.63) 23.26 (17.84) 30.63 (14.57)
17.00 21.92 (17.29) 33.61 (11.29) 20.48 (19.01) 27.46 (15.52)
18.00 18.17 (16.82) 29.41 (10.55) 16.70 (18.84) 23.15 (15.01)
19.00 28.89 (8.83) 42.91 (4.82) 28.18 (10.66) 36.22 (7.91)
20.00 46.62 (1.65) 64.24 (0.44) 46.18 (2.31) 56.73 (1.18)
21.00 52.28 (1.70) 70.04 (0.45) 51.95 (2.15) 62.83 (1.14)
22.00 49.88 (3.42) 66.53 (1.19) 49.27 (3.83) 59.67 (2.51)
23.00 51.01 (6.69) 66.55 (3.43) 49.86 (6.69) 60.01 (5.25)
24.00 42.75 (15.06) 55.32 (9.38) 40.90 (15.35) 49.42 (12.89)
Total 514.53 (645.94) 746.44 (462.32) 493.34 (717.93) 631.09 (615.91)

3.4.6.2 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.e., 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. At times, customised power (i.e., only during peak hours,
matching load profile) is not available in the market and RInfra-D, in order to avoid
load shedding to its customers, has to purchase Round the Clock (RTC) power.
3.4.6.3 Further, 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. Whereas power required for few hours of the day
would be purchased from Power Exchange at competitive price discovered on
Exchange. Also, 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.
3.4.6.4 Further, RInfra-D submitted that in its MYT Petition, no projection of any banking
is made at and the entire surplus power as projected is considered as sold.
3.4.6.5 RInfra-D considered the quantum of short-term power purchase as worked out in the
table above, considering the likely hourly pattern of load for each year of the MYT
Page 89 of 302

Control Period and the base load capacity availability projected considering its
present and proposed contracts with DTPS, WPCL, AMNEPL and VIPL.

3.4.6.6 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 2011-
12. 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. 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
Short term procurement in
MU
514.53 746.44 493.34 631.09
Short term Power
procurement cost per unit
(FY11-12 value of Rs.
4.47 per kWh escalated
annually at 3%) (Rs/kWh)
4.60 4.74 4.88 5.03
Total short term power
purchase cost (Rs Crore)
236.90 353.98 240.97 317.51

3.4.6.7 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, after
fully meeting the demand of its customers. The estimated revenue from the sale of
surplus power is adjusted against the gross power procurement cost. RInfra-D
further submitted that this approach is consistent with the methodology adopted by
the Commission in its Tariff Orders for Maharashtra Utilities, where surplus (if any)
is considered to be sold at the prevailing short-term market rates for power.

3.4.6.8 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. 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. The quantum and cost of surplus power purchase as
projected by R-Infra D is as given in the table below:
Page 90 of 302

Table 45: Quantum and Rate of Surplus Power sale projected by RInfra-D
Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Surplus power sale rate
(Rs per kWh)
3.03 3.12 3.21 3.31
Surplus Power (MU) 645.94 462.32 717.93 615.92
Realization from sale of
surplus power (Rs Cr)
195.6 144.2 230.64 203.81

3.4.6.9 As regards the purchase of power from short-term sources, the Commission has
accepted the method for estimating the requirement of power purchase from short-
term sources and accordingly approve the same quantum as proposed by RInfra-D.
As regards the purchase rate for procurement of power on short-term basis, the
Commission has not accepted the rates as considered by RInfra-D. The Commission
observed that RInfra-D has conveniently chosen to consider only purchase from
Power Exchange, however, the weighted average rate for power purchase from
bilateral and power exchange works out to Rs. 4.20/kWh as against Rs. 4.47/kWh as
estimated by RInfra-D summarised as under:

Table 46 Actual short-term Power Purchase during FY 2011-12
Particulars Purchase Quantum Purchase amount Average Rate
MU Rs. Crore Rs./kWh
Bilateral 1,458.13

607.07 *

4.16
Exchange 185.21

82.85

4.47
Weighted Average 4.20
*Note: Penalty of Rs. 98.93 Crore paid to GEPL for no-off take reduced to arrive at realistic purchase cost

3.4.6.10 Further, 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 91 of 302

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
FY
2011-12
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Actual Actual Actual Estimated Estimated Estimated
Bilateral

2,376.28

1,458.13 8.05
746.44 493.34 631.09
Exchange

611.09

185.21 439.40
Total

2,987.37

1,643.35

447.45

3.4.6.11 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
447.75 MU during FY 2012-13 and estimated during the Control Period. The
Commission opines that since the actual data for FY 2012-13 is now available, 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.
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
Power purchase for
short-Term Power
Procurement
Unit FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
Approved after
Provisional
Truing up
Power Purchase Quantum MU 447.45 746.44 493.34 631.09
Power Purchase Cost Rs. Crore 167.98 280.22 185.21 236.92

3.4.6.12 For estimating the revenue from sale of surplus power, the Commission has
considered the rate of Rs 2.50 per kWh for FY 2013-14 and Rs 2.35 per kWh for FY
2014-15 and FY 2015-16 for estimating the revenue from sale of surplus power. The
Page 92 of 302

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
Sale of Surplus Power Unit FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
Approved after
Provisional
Truing up
Power Purchase Quantum MU 842.34 448.13 674.58 571.94
Power Purchase Cost Rs. Crore 197.70 111.88 158.32 134.23

3.5 Transmission Charges

3.5.1.1 RInfra-D submitted that transmission charges to be borne by it is Rs 265 Crore in
FY 2012-13 as per the Commissions Order dated 21 May, 2012 in Case No. 51 of
2012.
3.5.1.2 The same has been considered in the MYT Petition for FY 2012-13. From FY 2013-
14 onwards, RInfra-D has escalated transmission tariff determined in the above
Order at the rate of 5% per annum. 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 RInfra-
D (Rs. Cr)
Transmission Charges 265.39 278.66 292.59 307.22

Page 93 of 302

3.5.1.3 As regards the transmission charges payable by RInfra-D for utilisation of intra-
State Transmission system, the Commission has relied upon the Order dated 13
May, 2013 in Case No. 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. Accordingly, the Commission
has considered the annual transmission charges as approved in the said Order,
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
Provisional
Truing up
Intra-State Transmission
Charges Rs. Crore 265.39 428.11 390.27 453.23

3.6 Stand-by Charges

3.6.1.1 RInfra-D submitted that the Commission has determined the Standby charges in its
Business Plan Order in Case No. 158 of 2011 dated 23 November, 2012 as 143.70
Crore for each year of the MYT Period.
3.6.1.2 RInfra-D submitted that in FY 2012-13 however, it is paying Rs. 212.45 Crore as
the Standby Charges as approved by the Commission in its order in Case No. 126 of
2011. As the MYT Order is only expected to be effective from FY 2013-14
onwards, the excess stand-by charges paid during FY 2012-13 can be adjusted in FY
2013-14. Accordingly, RInfra-D submitted that it has made adjustment in the
projected stand-by charges of FY 2013-14 in the MYT Petition.

3.6.1.3 Further, it was submitted by RInfra-D that in its Petition in Case No. 124 of 2012,
RInfra-D had mentioned that it paid an excess charge of Rs. 8.61 Crore in FY 2012-
13 for stand-by support due to incorrect representation of RInfra-Ds share in the
Commissions Order in Case No. 180 of 2011. This excess payment has also been
adjusted in the projected stand-by charges of FY 2013-14 in the present MYT
Petition. From FY 2014-15 onwards a payment of standby charges of Rs. 143.70
Page 94 of 302

Crore is considered as determined by the Commission in the Business Plan Order in
Case No. 158 of 2011 dated 23 November, 2012. 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
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Standby charges (Business Plan Order) 143.70 143.70 143.70 143.70
Actual Paid 221.06 - - -
Past Period adjustment of excess payment - 77.36 - -
Standby Charges 221.06 66.34 143.70 143.70

3.6.1.4 As regard the estimation of standby charges for the MYT Control Period the
Commission has considered the % share of Coincident Peak Demand and Non-
coincident Peak Demand as approved in the Order in Case No. 56 of 2013 for the
period from FY 2013-14 to FY 2015-16. Further, the Commission has considered
the adjustments towards excess charge of Rs. 8.61 Crore in FY 2012-13 for stand-by
support. 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 Unit FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
Approved after
Provisional Truing
up
Standby Charges Rs. Crore 143.7 137.00 137.00 137.00
Actual Paid Rs. Crore 221.06
Past Period adjustment
of excess payment Rs. Crore - 77.36
Standby Charges Rs. Crore 221.06 59.64 137.00 137.00

Page 95 of 302

3.7 SLDC Charges

3.7.1.1 RInfra-D submitted that the Commission has determined the SLDC charges in
Order dated 30 March, 2012 in Case No.181 of 2011 for FY 2012-13.
3.7.1.2 The same has been considered in the MYT Petition for FY 2012-13. From FY 2013-
14 onwards, RInfra-D has escalated SLDC Charges determined in the above Order
at the rate of 5% per annum. 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. Cr)
SLDC Charges 1.05 1.1 1.16 1.22

3.7.1.3 As regards the SLDC charges payable by RInfra-D, the Commission has relied upon
the Order dated 22 March, 2013 in Case No. 133 of 2012 issued in the matter of
Petition filed by MSETCL for approval of MSLDC Budget for FY 2013-14.
Accordingly, the Commission has considered share of RInfra-D out of the approved
Budget for MSLDC for FY 2013-14. Further, 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
Provisional Truing
up
SLDC Fees and
Charges Rs. Crore 1.05 1.64 1.64 1.64

3.7.1.4 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)
Energy Requirement 7456.15 7701.33 7897.19 8159.34
Long Term
Page 96 of 302

DTPS 3997.37 3787.60 3787.60 3798.13
Medium Term
Wardha Power 1935.96 1935.96 - -
Abhijeet MADC 409.53 409.53 - -
VIPL 997.76 997.76 - -
VIPL (Long Term) - - 4047.82 4058.91
Renewable 246.93 286.35 286.35 287.12
Short term purchase 514.53 746.44 493.34 631.09
Total 8102.09 8163.65 8615.12 8775.26
Deficit/(Surplus) (645.94) (462.32) (717.93) (615.92)

Table 57: Summary of Power Purchase Cost as submitted by RInfra-D (Rs. Cr)
DTPS 1303.67 1525.02 1437.90 1478.55
Wardha Power 986.45 793.68 - -
Abhijeet MADC 197.07 177.94 - -
VIPL 497.78 511.75 - -
VIPL (Long Term) - - 1384.87 1404.58
Renewable 274.99 293.22 298.24 304.79
Realization from surplus sale (195.60) (144.20) (230.64) (203.81)
SLDC Charges 1.05 1.10 1.16 1.22
Standby Charges 221.06 66.34 143.70 143.70
Total power purchase cost
without transmission charges
3523.37 3578.84 3276.20 3446.53
Transmission Charges 265.39 278.66 292.59 307.22
Total power purchase cost
with transmission charges
3788.76 3857.50 3568.79 3753.75

3.7.1.5 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)
Long Term
Page 97 of 302

DTPS 3,994.95 3,787.60 3,787.60 3,798.13
Medium Term
Wardha Power 2,039.49 1,935.96
Abhijeet MADC 441.97 409.53
VIPL 1,001.05 997.76
VIPL (Long Term) 4,047.82 4,058.91
Renewable 196.22 264.82 265.95 267.87
Banking Return 55.79 0.00
Deficit/(Surplus) -842.34 -448.13 -674.58 -571.94
Total Power Purchase 7,334.57 7,693.98 7,920.15 8,184.07

Table 59: Summary of Power Purchase Cost as approved by the Commission (Rs. Crore)
Long Term
DTPS 1,370.28 1,309.68 1,400.66 1,449.27
Medium Term
Wardha Power 1,001.85 793.68
Abhijeet MADC 204.27 177.94
VIPL 510.05 511.75
VIPL (Long Term) 1,384.87 1,404.58
Renewable 163.48 175.23 179.19 183.78
REC 90.81 65.00 67.92 71.24
Banking Return 26.44 0.00
Deficit/(Surplus) -197.70 -111.88 -158.32 -134.23
Stand-by Charges 221.06 59.64 137.00 137.00
SLDC Charges 1.05 1.10 1.16 1.22
Transmission Charge 265.39 428.11 390.27 453.23
Total 3,824.96 3,690.48 3,587.96 3,803.00

3.8 Capital Expenditure and Capitalisation
3.8.1 Capital Expenditure submitted by RInfra-D

3.8.1.1 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, with the
anticipated developments in the area of supply relating to new load, replacement of
Page 98 of 302

existing assets, strengthening and modernization in response to new load, etc. 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.
3.8.1.2 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 IITB study used
statistical tools and parameters such as historical demand of RInfra-D, Gross
District Domestic Product growth (GDDP for Mumbai) and other parameters, based
on 17 years historical data to arrive at the Maximum demand. It is anticipated that
maximum demand will be about 2022 MVA, by the end of FY 2015-16.
3.8.1.3 The forecast of maximum demand for the next five years is then used for estimating
the investments required to meet the forecast demand. However, considering the
huge investments required to meet n-1 contingencies and the financial constraints in
making such high levels of investments, the business plan proposed augmentation of
capacity for three nos. of existing receiving stations and commissioning of 17 nos.
of new receiving stations, during the plan period, where substantial loads are
coming up and the nearby power transformers are loaded above 70 %, to optimize
the network and the cost. As a result of the proposed EHV receiving stations, the
network needs to be re-configured which is necessary from the loss reduction
perspective and also to create more Outlets. The associated 11 kV network,
Distribution transformers, Switchgear, LT network, Services and Metering are
proposed to meet the new load requirement and necessary improvement in the
network at different voltage level, which are absolutely essential. Also it is proposed
to replace the existing 11kV Oil type RMUs with SF6/Vacuum RMUs which are
more compact, less prone to failure and safer in operations in order to improve
system reliability and to ensure safety.
3.8.1.4 Apart from the network and allied infrastructure investments proposed above,
RInfra-D submitted setting up of an Energy Park, to impart knowledge and create
awareness of the various aspects of Generation, Transmission and Distribution and
other areas forming part of the Power Sector. RInfra-D has already received in-
principal approval of the said Capex on Energy Park from the Commission for the
Page 99 of 302

same, vide letter dated 4 July, 2012 (MERC/CAPEX/201212013/00764).
Accordingly, the same was included in the capital expenditure plan.

3.8.1.5 RInfra-D further submitted that, the Business Plan submitted by RInfra-D had
forecasted capital expenditure for FY 2011-12 (based on actuals upto December
2011). However, at the time of the present MYT Petition, the actual capital
expenditure against various schemes in FY 2011-12 is known. There is a slight
under spend during FY 2011-12, which will spill-over into the period going forward
from FY 2012-13. Accordingly, the capital expenditure plan submitted under MYT
Petition is slightly different from what was presented in the Business Plan Petition.
RInfra-D further submitted that fresh capital expenditure of about Rs. 1200 Crore is
planned for the period FY 2012-13 to FY 2015-16. In additional there shall be
capital expenditure against on-going schemes of FY 2011-12 and previous years.

3.8.1.6 RInfra-D further submitted that the Commission, while estimating the capitalisation
for DPR schemes in the Business Plan Order in Case No. 158 of 2011 considered
only those schemes which have been granted in-principle approval. Further, an
additional 20% (of the approved DPR capitalisation) capitalisation was considered
by the Commission towards unplanned expenditure (i.e. Non-DPR schemes limited
to 20% of approved DRR capitalisation) during each year in accordance with
MERC MYT Regulations, 2011. Further, till the time of filing of the MYT Petition,
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 replacement of 11 kV Oil Type RMUs and for
Metering. 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.

3.8.1.7 Details of the total capital expenditure proposed during the plan period from FY
2012-13 to FY 2015-16, for the Retail Supply business as submitted by RInfra-D are

Page 100 of 302

Table 60: Capex-Retail Supply Business as submitted by RInfra-D (Rs. Cr)
Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Metering Schemes 33.74 34.93 36.58 40.03
Energy Park 0.50 3.00 1.99 -
Total Retail Supply
Capital Expenditure
34.24 37.93 38.57 40.03

3.8.1.8 Details of the total capital expenditure proposed during the plan period from FY
2012-13 to FY 2015-16, 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. Cr)
Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
DPR Schemes
11kV Network Strengthening Schemes 42.26 80.01 104.63 100.54
11kV Oil Type RMU Replacement 1.40 29.39 30.76 26.50
33 kV feeder reorientation from GIS
Chembur
1.00 3.50 2.50 -
33-22/11 kV Receiving Station Schemes 27.34 40.18 41.35 48.81
33-22/11 kV Receiving Station Schemes
(202012-13)
14.01 36.02 15.01 13.01
33-22/11 kV Receiving Station Schemes
(202013-14)
0.00 15.46 15.46 15.46
33kV Network reconfiguration for new
EHV stations
12.76 19.15 12.76 12.76
Disaster Management (North Division)
(2011-12)
2.94 - - -
Distribution Corporate Office (R&D
Bldg.) (2011-12)
29.12 36.41 7.28 -
LT Mains Schemes 45.35 74.05 41.36 56.99
Revised DPR of Receiving Station FY
2008-09
7.79 5.84 5.84 -
Revised DPR of Receiving Station FY
2009-10
7.81 5.86 5.86 -
Services Schemes 60.84 56.25 54.03 64.59
Street Lighting Schemes 22.23 17.85 18.61 19.06
Underground OFC Network (2011-12) 6.10 18.20 18.62 10.38
Page 101 of 302

Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Sub-total - DPR Schemes 280.96 438.16 374.08 368.09
Non DPR Schemes 19.42 30.10 38.29 41.21
Total Distribution Wires - Capital
Expenditure
300.38 468.26 412.37 409.30

Table 62: Summary of Capex (Wire & Retail) as submitted by RInfra-D (Rs. Cr.)
Particulars
FY 2012-
13
FY 2013-
14
FY 2014-
15
FY 2015-
16
Capital Expenditure Distribution
Wires Business
300.38 468.26 412.37 409.30
Capital Expenditure Retail Supply
Business
34.24 37.93 38.57 40.03
Total Capital Expenditure 334.62 506.19 450.94 449.33

3.8.1.9 RInfra-D submitted that the capital expenditure mentioned in the tables above
includes schemes already approved by the Commission, 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. In addition, unplanned capital
expenditure in the form of Non-DPR schemes has also been estimated for each year
of the MYT Period.

3.8.2 Capitalisation Plan submitted by RInfra-D

3.8.2.1 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. Cr)

Metering Schemes 34.51 35.32 37.01 40.41
Energy Park 0.00 1.11 4.44 0.00
Total Retail Supply -
Capitalisation
34.51 36.43 41.45 40.41

Page 102 of 302

3.8.2.2 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. Cr)
Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
DPR Schemes
11 kV Mains and Distribution Transformers 0.19 - - -
33 kV feeder reorientation from GIS Chembur 0.57 1.47 5.79 -
33kV Network reconfiguration for new EHV stations 8.12 8.54 6.78 20.41
Building Construction & Interior Works 6.94 - - -
Corporate Office, Customer Care Centre etc. 8.89 - - -
Disaster Management (North Division) (2011-12) 3.03 - - -
Distribution Corporate Office (R&D Bldg.) (2011-12) - 26.58 70.82 -
LT Mains Schemes 40.94 64.67 58.78 60.91
Receiving Station Schemes 0.04 - - -
Revised DPR of Receiving Station FY 08-09 10.66 13.49 15.39 -
Slum Electrification & Loss Reduction Project 8.66 - - -
Sub Total - DPR Schemes 320.60 330.14 411.43 414.93
Non DPR Schemes 10.01 25.45 40.78 42.34
Total Distribution Wires business - Capitalisation
(including IDC)
330.61 355.59 452.21 457.27

Table 65: Summary of Capitalisation (Wire & Retail) as submitted by RInfra-D (Rs. Cr.)

FY 2013-
14
FY 2014-
15
FY 2015-16
Capital Expenditure Distribution
Wires Business
330.61 355.59 452.21 457.27
Capital Expenditure Retail
Supply Business
34.51 36.43 41.45 40.41

Page 103 of 302

3.8.2.3 Further, 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. Cr)
B-Plan Order
Total Capitalisation 275.37 177.89 105.35 114.82
R-Infra-D estimates

3.8.2.4 RInfra-D further submitted that the Business plan Petition was based on the
provisional data for FY 2011-12. For the purpose of MYT petition, the final audited
accounts for FY 2011-12 have been considered and the numbers relating to capital
expenditure and capitalization have been accordingly revised. Due to some under-
spending in FY 2011-12, there is spill-over expenditure in FY 2012-13 onwards.
Further, 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.


3.8.3.1 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. REL-D/FY12/11, whose proposed cost was Rs. 91.43 Crore. This scheme
is under scrutiny of the Commission. Accordingly, 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 104 of 302

Table 67: Capitalisation Plan for Wire Business as approved by the Commission (Rs. Cr)

Table 68: Capitalisation Plan for Retail Supply Business as approved by the Commission
(Rs. Cr)
Total Retail Supply - Capitalisation 34.33 36.34 41.34 40.32

3.8.3.2 The Commission in its Order on Business Plan of RInfra-D in Case No. 158 of 2011
dated 23 November, 2012 approved total Capitalisation from FY 2012-13 to FY
Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
DPR Schemes
11 kV Mains and Distribution Transformers 0.19 - - -
33 kV feeder reorientation from GIS Chembur 0.57 1.47 5.79 -
33kV Network reconfiguration for new EHV
stations
8.12 8.54 6.78 20.41
Building Construction & Interior Works 6.94 - - -
Corporate Office, Customer Care Centre etc. 8.89 - - -
Disaster Management (North Division) (2011-12) 3.03 - - -
LT Mains Schemes 40.94 64.67 58.78 60.91
Receiving Station Schemes 0.04 - - -
Slum Electrification & Loss Reduction Project 8.66 - - -
Sub Total - DPR Schemes(including IDC) 318.68 299.96 335.33 408.43
Non DPR Schemes(including IDC) 9.95 25.15 40.15 41.67
Total Distribution Wires business -
Capitalisation (including IDC)
328.63 325.11 375.47 450.10
Page 105 of 302

2015 -16 at Rs. 673.43 Crore whereas in the MYT Petition, RInfra-D submitted the
total Capitalisation Plan from FY 2012-13 to FY 2015 -16 as Rs.1748.48 Crore. The
Variation is on account of Seven (7) DPR Schemes pertaining to the proposed
Capitalisation amount of Rs. 1075.56 Cr approved by the Commission after
issuance of Business Plan Order and before submission of RInfra-D MYT Petition.
RInfra-D submitted these schemes as per the directive of the Commission to in its
Business Plan Order in Case No. 158 of 2011:
. 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.

3.8.3.3 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. Cr)
B-Plan Order
R-Infra-D estimates
Variation 89.75 214.13 388.31 382.86
Total Variation
1075.05

Page 106 of 302

Table 70: Additional Schemes approved Post issuance of Business Plan Order and Pre
Submission of MYT Petition (Rs. Cr)

S
No.
Proposed Scheme
In principle
Clearance
Code No Year wise Schemes
Total
Cost
As
Prop. R-
Infra-D
As
Appr.
MERC
FY13 FY14 FY15 FY16
1
33-22/11 kV
Receiving Station
Schemes (2013-16) 374.14 364.52 REL-D/FY13/02 96.72 100.69 98.46 68.65 364.52
Capitalisation 4.33 19.36 33.42 35.76 92.87
2
11kV Network
Strengthening
Schemes (2013-16) 628.46 628.46 REL-D/FY13/03 145.18 154.88 160.89 167.51 628.46
Capitalisation 74.73 55.41 70.75 121.47 322.35
3
LT Mains Schemes
(2013-16) 261.04 261.03 REL-D/FY13/04 59.59 62.88 67.78 70.78 261.03
Capitalisation 12.91 31.99 58.78 60.91 164.59
4
Services Schemes
(2013-16) 239.23 239.23 REL-D/FY13/05 53.82 57.29 61.41 66.71 239.23
Capitalisation 31.08 54.49 50.98 67.48 204.03
5
Metering Schemes
(2013-16) 145.28 145.28 REL-D/FY13/06 33.74 34.93 36.58 40.03 145.28
Capitalisation 34.51 35.32 37.01 40.41 147.25
6
Street Lighting
Schemes (2013-16) 73.46 73.47 REL-D/FY13/07 17.43 18.02 18.86 19.15 73.46
Capitalisation 8.81 18.66 16.9 20.31 64.68
7
11kV Oil Type
RMU Replacement
(2013-16) 111.71 111.71 REL-D/FY13/08 27.99 28 27.91 27.82 111.72
Capitalisation 0.72 15.84 34.43 28.8 79.79

Total Capex Year
Wise 434.47 456.69 471.89 460.65 1823.7

Total
Capitalisation
Year Wise 167.09 231.07 302.27 375.13 1075.56

3.9 Depreciation
3.9.1 Depreciation submitted by RInfra-D

3.9.1.1 RInfra-D submitted that in accordance with MERC MYT Regulations, 2011 it has
computed depreciation expenses as provided below:
Page 107 of 302

31.2 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.
(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, 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. Provided
that the Generating Company or Transmission Licensee or Distribution
Licensee, shall submit all such details or documentary evidence, as may
be required under this Regulation and as stipulated by the Commission,
from time to time, to substantiate the above claims.
(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.
3.9.1.2 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. For this purpose, the useful life of assets defined
in MYT Regulations, 2011 has been considered as per the said Regulations
and the assets for which no useful life is provided in the Regulations, the same
have been considered as per the Companies Act, 1956. 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)
Useful Life as
per MERC/
based on
companies
act
Year
Lapsed
till 70%
Remaining
life after 70%
Depreciation
rate after 70%
Lease Hold Land 3.34% 90 19 71 0.28%
Building 3.34% 50 19 31 0.65%
Plant & Machinery 5.28% 25 12 13 1.54%
Page 108 of 302

Type of Asset
Till 70%
(AS per MYT
Regulations)
Useful Life as
per MERC/
based on
companies
act
Year
Lapsed
till 70%
Remaining
life after 70%
Depreciation
rate after 70%
Distribution System 5.28% 35 12 23 0.87%
Vehicles 9.50% 10 7 3 6.67%
Furniture/Fixture 6.33% 14 10 4 5.00%
Off. Equipment 6.33% 14 10 4 5.00%
Computer & Software 15.00% 6 4 2 10.00%
Elect. Fittings 6.33% 14 10 4 5.00%
Refg & Domestic Appliances 6.33% 14 10 4 5.00%

b) Depreciation on the opening GFA as on 1 April, 2012: The assets
comprising the Opening GFA as on 1 April 2012 and their corresponding
accumulated depreciation considered. 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. Depreciation was calculated at the rates specified by the MERC
MYT Regulations, 2011 upto the 70% threshold. On reaching
70%, depreciation is computed using the effective rate as shown in
the table above.
ii. The MYT Regulations, 2011 have specified the useful life for sub-
station and distribution lines. For other assets, useful life has been
considered as per the Companies Act, 1956.
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, the depreciation is calculated on straight line basis, as per the
rates & the useful life as specified in the MERC MYT Regulations, 2011,
applying the same principles as above. However, for these new assets,
depreciation has been calculated considering mid-year capitalisation. RInfra-D
further submitted that no asset from this category will reach 70% of its value
during the MYT Period.

Page 109 of 302

3.9.1.3 RInfra-D further submitted that the effect of retirement of assets and withdrawal of
corresponding accumulated depreciation, differential depreciation rates, and salvage
value were considered in these calculations for depreciation for opening GFA as on
1 April, 2012. RInfra-D submitted that depreciation has not been claimed beyond
90% of the asset value.

3.9.1.4 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. However, there could be changes on account of variation in
capitalization, asset mix of assets added, retirement of assets, etc. which would alter
the actual depreciation from what is estimated.

3.9.1.5 RInfra-D submitted that the Commission in its Order on the Business Plan in Case
No. 158 of 2011 directed RInfra-D to provide details of retired assets during the
period FY 2012-13 to FY 2015-16. In this regard, 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. RInfra-D submitted that even with assets reaching 90% of
historical value during MYT Period, the same may not be retired as the asset might
still be useful based on its actual physical condition. 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.

3.9.1.6 Further, in reply to the Commissions 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, 2012
and the depreciation working is correctly prepared as per the applicable MYT
Regulations, 2011 and placement of the certificate in the Audit Committee of the
Company, RInfra-D submitted vide its reply dated 11 February, 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. The
depreciation workings are based on estimates of asset additions and not actuals, and
Page 110 of 302

therefore the auditor would not be able to certify the same. Since the certification is
not possible the same could not be placed before the Audit Committee.

3.9.1.7 The depreciation calculation for the Retail Supply business as submitted by RInfra-
D 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. Cr)
Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Opening GFA 506.55 534.68 565.02 600.24
Addition 34.51 36.43 41.45 40.41
Retirement 6.39 6.09 6.24 6.16
Closing GFA 534.68 565.02 600.24 634.48
Depreciation for Opening Balance (1
Apr 2012)
15.78 15.75 15.68 15.52
Depreciation for new additions 0.91 2.77 4.78 6.89
Total Depreciation 16.69 18.52 20.45 22.42

3.9.1.8 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. Cr)
Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Opening GFA 3644.68 3968.32 4317.42 4762.9
Addition 330.61 355.59 452.21 457.27
Retirement 6.97 6.49 6.73 6.61
Closing GFA 3968.32 4317.42 4762.9 5213.56
Depreciation for Opening Balance
(1 Apr 2012)
157.58 156.21 155.58 154.13

3.9.1.9 Further, RInfra-D submitted deviation in Depreciation from the value approved by
the Commission in its Business Plan Order in Case No. 158 of 2011 and those
submitted in its MYT Petition as given in the table below:
Page 111 of 302

Table 74: Comparison of Depreciation as approved by the Commission in Business Plan
and as submitted by RInfra-D in MYT Petition (Rs. Cr)
Particulars
FY 2012-
13
FY 2013-
14
FY 2014-
15
FY 2015-
16
Business Plan Order
Depreciation Wires 144.50 154.26 160.24 164.82
Depreciation Retail 15.71 15.41 15.11 14.81
Total 160.21 169.67 175.35 179.63
MYT Petition
Total 182.81 201.00 223.16 247.17

3.9.1.10 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 2011-
12. Subsequently, 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, which
causes change in the opening value of gross block for MYT Period i.e. as 1
April, 2012.

b) In the Business Plan Order the Commission approved capitalisation in the
second control period based on then approved schemes. For the purpose of
MYT Petition, the total capital expenditure and capitalisation, RInfra-D
considered both approved and yet to be approved schemes, has been
included for the second control period.


3.9.2.1 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 Commission has considered the opening GFA for FY 2011-12 as
Page 112 of 302

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 2012-
13 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
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Opening GFA 3636.75 3958.41 4277.03 4645.77
Addition 328.63 325.11 375.47 450.10
Retirement 6.97 6.49 6.73 6.61
Closing GFA 3958.41 4277.03 4645.77 5089.26
Depreciation for Opening Balance 157.24 155.87 155.24 153.80

Page 113 of 302

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

Table 77: Total Depreciation as approved by the Commission for the Second Control
Period (Rs. Cr)
Particulars
FY 2012-
13
FY 2013-
14
FY 2014-
15
FY 2015-
16
MYT Order
Total 182.41 199.70 219.15 240.99
MYT Petition (RInfra-D)
Total 182.81 201.00 223.16 247.17

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 114 of 302

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 115 of 302

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)
Particulars
Amt.
(Rs.
Cr)
Interest
Rate
FY
2012-
13
FY
2013-
14
FY
2014-
15
FY
2015-
16
FY
2016-
17
FY
2017-
18
FY
2018-
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 116 of 302

Particulars
Amt.
(Rs.
Cr)
Interest
Rate
FY
2012-
13
FY
2013-
14
FY
2014-
15
FY
2015-
16
FY
2016-
17
FY
2017-
18
FY
2018-
19
Total 1000
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 117 of 302

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)
Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
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)
Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
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 118 of 302

been deducted from the total capitalisation while working out the 70% debt
requirement. 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. Hence, all
fresh debt requirements is considered normative at the interest rate of 11.5% as
approved by the Commission in the Business Plan Order in Case No. 158 of 2011.
The proportionate depreciation for the fresh capital expenditure was considered as
repayment according to the MERC MYT Regulations, 2011. 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. Cr)
Opening balance 0.00 222.89 445.54 714.96
Addition 231.43 248.92 316.55 320.09
Repayment 8.54 26.26 47.13 70.62
Closing Balance 222.89 445.54 714.96 964.43
Interest rate (%) 11.50% 11.50% 11.50% 11.50%
Interest 12.82 38.43 66.73 96.56

Table 82: Summary of Interest Expenses for New loans for Retail Supply Business as
submitted by RInfra-D (Rs. Cr)
Opening balance 0.00 23.25 45.98 70.22
Addition 24.16 25.5 29.02 28.29
Repayment 0.91 2.77 4.78 6.89
Closing Balance 23.25 45.98 70.22 91.61
Interest rate (%) 11.50% 11.50% 11.50% 11.50%
Interest 1.34 3.98 6.68 9.31

3.10.1.12 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 119 of 302

Table 83: Summary of Total Interest Expenses for Wires & Retail Business as submitted by
RInfra-D (Rs. Cr)
Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Interest on opening Balance as on 1st
April 2012

Wires 131.07 113.78 96.60 79.54
Retail 15.21 13.48 11.76 10.05
Total 146.28 127.26 108.36 89.59
Interest on New Loans (FY 2012-13 to
FY 2015-16)

Wires 12.82 38.43 66.73 96.56
Retail 1.34 3.98 6.68 9.31
Total 14.16 42.41 73.41 105.87
Total Interest Expenses 160.44 169.67 181.77 195.46

3.10.1.13 Further, with respect to the Commissions query regarding actual/normative loan
outstanding against the retired assets, RInfra-D submitted vide its reply dated 11
February, 2013 that the loan component in the cost of the asset is only 70%, the loan
would be completely repaid by way of depreciation before the asset is retired.

3.10.1.14 Further, RInfra-D submitted deviation in interest rate expenses as approved by the
Commission in its Business Plan Order in Case No. 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. Cr)

Interest on Loans FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
Business Plan Order
Retail 6.14 4.70 3.29 1.91
Wire 83.41 85.69 79.62 69.97
Total 89.55 90.39 82.92 71.89
MYT Petition
Retail 16.55 17.46 18.44 19.36
Wire 143.89 152.21 163.33 176.10
Total 160.44 169.67 181.77 195.46
Page 120 of 302

3.10.1.15 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, for the purpose of computing
the interest on the opening normative debt, whereas the Commission in the
Business Plan Order considered normative interest rates as approved by it in
the previous Orders (i.e. 8%, 10%, 9%, depending upon the year of
admittance of loan).
b) The amount of debt balance considered by RInfra-D is based on the actual
capitalisation till FY 2011-12. The Business Plan Petition was based on
provisional accounts for FY 2011-12. Subsequently, 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.
c) In the Business Plan Order, the Commission approved capitalisation in the
second control period based on the then approved schemes. For the purpose
of MYT Petition, the total capital expenditure and capitalisation,
considering both approved and yet to be approved schemes, were included
for the Second Control Period.


3.10.2.1 As regards the refinancing of the existing normative loan with actual loan, the
Commission in its Order in Case No. 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. As per the Commissions view, present Petition cannot seek
review of the decisions already taken in the earlier Orders which have
remained unchallenged and hence have attained finality. In line with the
Page 121 of 302

practice followed for the past years, the Commission approves fixed
interest rate of 11.50% for normative debt corresponding to the
capitalisation which belongs to FY 2011-12.

3.10.2.2 Accordingly, for the purpose of estimating interest expenses for Second Control
Period of MYT from FY 2012-13 to FY 2015-16, the Commission has not
considered the proposed financing of normative loans by actual loans as submitted
by RInfra-D. Moreover, it was observed that the proposed re-finance of the
normative loans have been done with expensive loan. The comparison of the
normative loan and actual is as given in the table below:

Particulars
Outstanding
Loan
Approved
Interest
Rate by the
Commission
Actual
Loan for
re-finance
Loan
Amount
Applicable
Actual
Interest Rate
as submitted
by RInfra-D
Closing Balance for
FY 05-06
239.60 10.00%
LIC &
Others
585.00 10.50%
Projects initiated
during FY 06-07
205.86 8.00% NIACL 50.00 10.25%
Projects initiated
during FY 07-08
129.52 8.00% YES Bank 121.00 11.15%
Projects initiated
during FY 08-09
236.41 9.00% YES Bank 120.00 11.15%
Projects initiated
during FY 09-10
241.31 9.00% YES Bank 124.00 11.15%
Projects initiated
during FY 10-11
282.93 9.00%
Central
Bank of
India
350.00 11.80%
Total 1,335.62 1,350.00

3.10.3 In regard to the actual loans availed by RInfra-D, the Commission on scrutiny of the
term sheets of these loans, observed that all the actual loans availed by RInfra-D have
a repayment period of 7 years or less. This clearly indicates that repayment of these
loans will have to be refinanced as instalments for repayment becomes due. The
Commission observes that RInfra-Ds proposal to refinance all the actual loans stated
above as and when repayment becomes due could expose its consumers to
Page 122 of 302

refinancing risk, which might be detrimental to the interest of the consumers.
3.10.4 Further, 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, since, by way of notifying the MERC MYT Regulations,
2011, 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.
3.10.5 Therefore, the Commission, considering prudency of the expenditure, is of the view
that refinancing of normative loan with actual loans as proposed by RInfra-D should
not be allowed. Further, the Commission disallows admittance of actual loans of
shorter duration.
3.10.6 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. 124 of 2012 as the opening
balance of loan for FY 2012-13. From FY 2012-13 to FY 2015-16, the Commission
has considered loan addition for each of the year as 70% of the capitalisation
approved for the respective year.
3.10.7 Regulation 33 of the MERC MYT Regulations, 2011 specifies that the repayment of
loan shall be equal to the depreciation allowed in the respective year. Accordingly,
the Commission has considered the repayment of loan equal to the depreciation as
approved for respective years.
3.10.8 Regulation 33 of the MERC MYT Regulations, 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. Further, the
interest should be calculated on the normative average loan availed in a particular
year.
3.10.9 However, the Commission has considered all loans availed by RInfra-D as normative
loans for the approval of MYT Petition. Hence, as per the 2
nd
proviso to Regulation
33.5 of MERC MYT Regulations, 2011, if the Distribution Licensee doesnt have any
actual borrowings, then the weighted average interest of the generating company or
transmission licensee or distribution licensee as a whole needs to be considered.
Page 123 of 302

3.10.10 The Commission computed the weighted average interest rate in accordance with
Regulations quoted above. 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, i.e., for FY 2011-12 is considered. However, the loans
disallowed by the Commission in the Business Plan Order for RInfra-D (Case No.
158 of 2011) and RInfra-T (Case No. 159 of 2011) have not been considered for
computation of weighted average interest rate. The Commission has further not
considered the loan of Rs. 300 Crore toward NCD being short-term repayable in one
year. 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
Amount
(Rs crore)
Yearly interest (Rs crore)
1 6.35% secured NCD
250 15.88
2 6.70% secured NCD
125 8.38
3 5.95% secured NCD
100 5.95
4 5.60% secured NCD
150 8.4
5 11.55% secured NCD
850 98.18
6 ECB in foreign currency unsecured
763.12 50.59
7 Central bank of India
300 35.4
Total
2,538.12 222.77
Weighted average interest rate
8.78%

3.10.11The 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.
3.10.12 The summary of the outstanding loans, new loan, repayment of loans and interest
expense for Wire and Retail business for the Second Control Period of the MYT is as

Table 86: Interest Expenses on Long Terms loans for the MYT period as approved by the
Commission (in Rs. Crore)

Page 124 of 302

Retail
Opening Balance 157.94 165.29 172.27 180.77
Additions of New Loans 24.03 25.44 28.94 28.22
Repayments 16.69 18.45 20.43 22.40
Closing Balance 165.29 172.27 180.77 186.60
Interest Expenses 14.19 14.82 15.50 16.13
Wires
Opening Balance 1,262.87 1,327.19 1,373.52 1,437.64
Repayments 165.73 181.25 198.71 218.59
Closing Balance 1,327.19 1,373.52 1,437.64 1,534.11
Retail + Wires
Opening Balance 1,420.82 1,492.48 1,545.79 1,618.41
Repayments 182.41 199.70 219.15 240.99
Closing Balance 1,492.48 1,545.79 1,618.41 1,720.71

3.11 Return on Equity

3.11.1 Return on Equity submitted by RInfra-D

3.11.1.1 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.
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. The opening
equity as on 1 April, 2013 is based on the True-Up Petition for FY 2011-12 in Case
No. 124 of 2012, for RInfra-D. Further, it was submitted that to the equity thus
determined, the rate of return as specified in MERC MYT Regulations 2011 was
applied. RInfra-D considered return on the opening equity for the full year, while
Page 125 of 302

50% equity was considered for the capital expenditure capitalised during the year as
per the MYT Regulations.
32.2.1 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 15.5 % per
cent per annum, and for the Retail Supply of Electricity of Distribution
Licensee, Return on equity capital shall be allowed a return at the rate of
17.5 % per cent per annum, in Indian Rupee terms, on the amount of
equity capital determined in accordance with Regulation

3.11.1.2 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. Cr)
Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Regulatory Equity at the beginning of the year 1,420.82 1,512.32 1,610.89 1,737.77
Capitalisation during the year 330.61 355.59 452.21 457.27
Equity portion of capitalisation during the year 91.49 98.58 126.87 127.75
Consumer Contribution and Grants used during
the year for Capitalisation
18.65 20.52 22.57 24.83
Reduction in Equity Capital on account of
retirement / replacement of assets
6.97 6.49 6.73 6.61
Regulatory Equity at the end of the year 1,512.32 1,610.89 1,737.77 1,865.52
Return Computation 15.50% 15.50% 15.50% 15.50%
Return on Regulatory Equity at the beginning
of the year
220.23 234.41 249.69 269.35
Return on Equity portion of capitalisation
during the year
7.09 7.64 9.83 9.90
Total Return on Regulatory Equity 227.32 242.05 259.52 279.25

Page 126 of 302

Table 88: Return on Equity for Retail Supply Business as submitted by RInfra-D (Rs. Cr)
Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Regulatory Equity at the beginning of the
year
156.29 164.73 173.83 184.39
Capitalisation during the year 34.51 36.43 41.45 40.41
Equity portion of capitalisation during the
year
8.44 9.10 10.56 10.27
Consumer Contribution and Grants - - - -
Reduction in Equity Capital on account of
retirement / replacement of assets
6.39 6.09 6.24 6.16
Regulatory Equity at the end of the year 164.73 173.83 184.39 194.67
Return Computation 17.50% 17.50% 17.50% 17.50%
Return on Regulatory Equity at the
beginning of the year
27.35 28.83 30.42 32.27
Return on Equity portion of capitalisation
during the year
0.74 0.80 0.92 0.90

Table 89: Return on Equity for Wires and Retail Business as submitted by RInfra-D
(Rs. Cr)
Retail 28.09 29.62 31.34 33.17
Wire 227.32 242.05 259.52 279.25
Total 255.41 271.67 290.87 312.42

3.11.1.3 Further RInfra-D submitted that in its Business Plan Order in Case No. 158 of 2011
dated 23 November, 2012 the Commission considered the closing balance of equity
as approved in its Order in Case No. 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. However, 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 127 of 302

per its Petition under Case No. 124 of 2012, which considered the actual
capitalisation during FY 2011-12. 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, whereas the Commission in its
Business Plan Order in Case No. 158 of 2011considered only then approved
schemes for the purpose of projecting capitalisation for the Second Control Period.
The deviation in Return on Equity as approved by the Commission in its Business
Plan Order in Case No. 158 of 2011 dated 23 November, 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. Cr)
As per Business Plan
Order
220.14 229.33 234.85 238.95
As per MYT Petition 255.41 271.67 290.87 312.42


3.11.2.1 While estimating Return on Equity (RoE) for the Second Control period of the
MYT from FY 2012-13to FY 2015-16, the Commission has subtracted 30% of the
GFA of the retired assets and Consumer Contribution and Grants while computing
closing level of Regulatory Equity. 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 (Final truing up of FY 2011-12
and FY 2010-11).Further, while computing RoE for the Second Control Period of
the MYT, the Commission added 50% of the equity portion of the approved
Capitalisation during the year. The RoE has been considered in line with the MYT
Regulations, 2011, i.e., 17.5% for Retail Supply business and 15.5% for Wire
business as quoted below:
Page 128 of 302

32.2.1 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 15.5 % per
cent per annum, and for the Retail Supply of Electricity of Distribution
Licensee, Return on equity capital shall be allowed a return at the rate of
17.5% per cent per annum, in Indian Rupee terms, on the amount of equity
capital determined in accordance with Regulation 30.

3.11.2.2 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
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Retail
Regulatory Equity at the beginning of the year 156.29 164.67 173.74 184.28
Capitalized Expenditure 34.33 36.34 41.34 40.32
Less: Reduction in Regulatory Equity during
the year due retirement of assets

6.39

6.09

6.24

6.16
Equity portion of capitalized expenditure 8.38 9.07 10.53 10.25
of the year
27.35 28.82 30.41 32.25
Return on Equity portion of capitalized
expenditure

0.73

0.79

0.92

0.90
Wires
Regulatory Equity at the beginning of the year 1418.44 1509.34 1598.77 1702.63
Capitalized Expenditure 328.63 325.11 375.47 450.10
Less: Consumer contribution 18.65 20.52 22.57 24.83
Less: Reduction in Regulatory Equity during
the year due retirement of assets

6.97

6.49

6.73

6.61
of the year
219.86 233.95 247.81 263.91
Return on Equity portion of capitalized 7.04 6.93 8.05 9.73
Page 129 of 302

Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
expenditure
Retail+Wires
Regulatory Equity at the beginning of the year 1,574.73 1,674.01 1,772.52 1,886.90
Regulatory Equity at the end of the year 1,674.01 1,772.52 1,886.90 2,022.75
of the year
247.21 262.77 278.22 296.16
Return on Equity portion of capitalized
expenditure
7.78 7.72 8.97 10.63

3.12 Operations and Maintenance Expenditure

3.12.1 Operations and Maintenance Expenditure

3.12.1.1 RInfra-D submitted that:
a) Prior to issuance of the final MERC MYT Regulations, 2011, the Commission
had issued the Draft Multi Year Tariff Regulations (referred to as Draft
Regulations) for public consultation on 30 August, 2010.
b) The norms for O&M expenditure were specified in Clauses 73.3 and 87.6 of
the Draft Regulations for the Distribution Wires business and the Retail Supply
business respectively.
c) There was a significant difference between the norms specified in the Draft
Regulations, consulted upon with the utilities and members of public and those
specified in the final Regulations.
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.
3.12.1.2 RInfra-D also submitted the comparison of the O&M Expenses calculated based on
the norms specified as in the MERC MYT Regulations 2011, 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. 180 of 2011 as given in the table below:
Page 130 of 302

Table 92: Comparison of O&M Expenses as submitted by RInfra-D
Particulars
MYT
Regulations,
2011
Actual
Expenses
Approved Expenses as
per Order in Case No.
180 of 2011
Employee Expenses 427.04 401.96
A&G Expenses 139.96 146.44
R&M Expenses 167.01 185.05
Total Expenses 558.69 734.01 733.44

3.12.1.3 RInfra-D further submitted that, in its Business Plan Petition, 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.
All other activities would continue to remain, just the same way as presently done
for own consumers. Further, the effect of migration whether on own network or to
another network would also be offset by natural addition of consumers to the
licensees fold. Hence, the distribution network activities are not likely to see any
change on account of change-over or switchover of consumers. Similarly, the
supply activities only reduce to a minor extent.
3.12.1.4 RInfra-D submitted that even though its retail supply business is witnessing
competition and consumer migration at present, the O&M expenses shall be reduced
marginally over the Plan Period. RInfra-D further indicated that it is still carrying
out a number of its usual business activities even for changeover consumers. These
activities primarily include:

a) Regular monthly meter reading of Changeover consumers to validate the
consumption data being shared by TPC, as RInfra-D is responsible for
maintaining the distribution system losses.
b) Meter replacement during Joint Meter Reading (JMR), if consumer wants SDL
(Supply Distribution Licensee) meter.
c) Accompanying TPC-D representative for recovery of arrears and disconnect the
supply if TPC-D dues are not paid by the changeover consumers;
Page 131 of 302

d) Accompanying TPC-D representatives for on-site activities such as meter
testing, meter replacement, consumer complaints related to meter/metering
equipment, etc.;
e) Continued (and increased) vigilance efforts for changeover consumers, as TPC-
D is unaffected by such theft as its losses are fixed at normative level which do
not even include commercial losses including theft of electricity;
f) 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 RInfra-D, however it is TPC-
D who retains PF surcharge recovered from the changeover consumers
g) Coordinating with TPC-D for jobs such as service shifting, load enhancement,
etc. such as monitoring and power factor improvement for changeover
consumers, etc.

3.12.1.5 RInfra-D submitted that however, in its Order on the Business Plan in Case No. 158
of 2011 dated 23 November, 2012, the Commission only computed O&M expenses
for each year of the MYT Period as per the MYT Regulations, 2011. RInfra-D
submitted that the Commission may kindly review its decision under Regulation
100 (Power to Remove Difficulties) of the MYT Regulations, 2011 so as to provide
a more representative allowance of O&M expenses for the MYT Period, which is
relatable to past expenses. RInfra-D further submitted that because the O&M norms
specified in the MERC MYT Regulations 2011 lead to lower base value of
expenses, all expenses to be allowed in future based on the norms would also be
much lower than the actual expenses. RInfra-D submitted that this would lead to
significant financial difficulties in terms of managing day to day network
operations, paying salaries and wages to employees, making payments to vendors,
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, which will have negative impact on quality and reliability of supply.

Page 132 of 302

3.12.1.6 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- 16) as given
below:
a) As FY 2012-13 is almost over, 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, which were considered as base expenses for the MYT Period.
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, but considered separately by RInfra-D.
d) RInfra-D proposed to recover charges for usage of SCADA system from
RInfra-T. Such recovery has been reduced from each head of O&M expenses.

3.12.1.7 RInfra-D submitted that, RInfra has established a State of the Art System Control
Centre at Aarey. RInfra-T does not have a separate SCADA centre, but the existing
System Control Centre caters to entire Transmission and Distribution Network of
RInfra in Mumbai area.
3.12.1.8 RInfra-D further submitted that as per prevailing practice, entire cost of this control
centre is being considered in RInfra-D ARR. However, with effect from FY 2012-
13, RInfra-D intends to apportion the costs applicable to the operations pertaining to
RInfra-T. For FY 2012-13, 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.
The projection for FY 2013-14 to FY 2015-16 has been arrived at after considering
the escalation of 7.57% year on year basis for employee expenses, escalation of
7.16% YoY basis for A&G expenses and escalation of 6.89% year on year basis for
R&M expenses, in line with the Commission approved escalation for Employee and
A&G expenses in its Order in Case No. 167 of 2011.
3.12.1.9 Further, as a part of reply to data gaps, RInfra-D submitted its actual (based on
provisional account) O&M expenses including corporate allocation for FY 2012-13
as:
Page 133 of 302

a) Employee Expenses: Rs. 594.98 Crore
b) A&G expenses : Rs. 159.21 Crore
c) R&M expenses : Rs. 225.07 Crore

3.12.2 Employee Expenses

3.12.2.1 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.
3.12.2.2 RInfra-D submitted that the wage agreement was revised in July 2012, with wage
revision effective from July 2010 onwards. The Actual Employee expenses in FY
2011-12 was Rs 427.04 Crore and in FY 2012-13 it is Rs 538.22 Crore. 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. On account of wage revision an amount of Rs. 16 Crore is
pertaining to FY 2010-11 and Rs. 24 Crore pertaining to FY 2011-12 has been
accounted in FY 2012 -13. 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.
3.12.2.3 RInfra-D further submitted that there was an impending wage revision for unionised
employees due from 1 July, 2010 and another wage revision would be due by the
end of the MYT period. RInfra-D revises wages of the unionised employees every
four years as well as for the staff in the officers and supervisory category.

3.12.2.4 Further, it was submitted that the projected employee expense for FY 2012-13 of the
RInfra-D is then escalated by 9.28% (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.

3.12.2.5 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 134 of 302

Table 93: Summary of Employee Expenses as submitted by RInfra-D (Rs. Cr)
Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Employee Expenses 498.22 544.45 594.98 650.19
Add: Past Period Adjustments 40.00
Less: SCADA Charges from RInfra-T 0.96 1.05 1.15 1.26
Total Employee Expenses 537.26 543.40 593.83 648.94

3.12.3 Administrative and General Expenditure

3.12.3.1 RInfra-D submitted that the actual A&G expenses in FY 2011-12 were Rs. 139.96
Crore. The A&G expenses have been projected considering two categories. Firstly,
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.
3.12.3.2 RInfra-D considered Inflation index for projecting A&G expense which was a mix
of 60% CPI and 40% WPI. Secondly, estimates are separately considered for
charges relating to usage of RInfra Transmission (RInfra-T) land for installations
of RInfra-D.
3.12.3.3 The summary of the A&G expenses for the period FY 2012-13 to FY 2015-16 as

Table 94: Summary of A&G Expenses as submitted by RInfra-D (Rs. Cr)
Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
A&G Expenses 170.00 184.24 199.68 216.42
Add: Past Period Adjustments 1.60 1.60 1.60 1.60
Total A&G Expenses 171.54 185.78 201.22 217.95

3.12.4 Repairs and Maintenance Expenditure

3.12.4.1 RInfra-D submitted that the actual R&M Expenses for FY 2011-12 were Rs. 167.01
Crore which increased to Rs. 230 Crore in FY 2012-13. RInfra-D submitted that the
increase is largely due to uncontrollable factors as given below:
Page 135 of 302

a) Wage agreement of Contracted labourers in July 2012 with effect from July
2010. Since contracted labourers do not form a part of the employee expenses
they are considered in R&M.
b) Increase in material consumption cost from the previous year due to non-
receipt of many materials in FY 2011-12.

3.12.4.2 RInfra-D further submitted that the projected Repair and Maintenance expense for
FY 2012-13 is then escalated by 7.02% (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.

3.12.4.3 The summary of the R&M expenses for the period FY 2012-13 to FY 2015-16 as

Table 95: Summary of R&M Expenses as submitted by RInfra-D (Rs. Cr)
Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
R&M Expenses 200.00 214.04 229.07 245.15
Add: Past Period Adjustments 30.00
Total R&M Expenses 229.79 213.82 228.83 244.89

3.12.4.4 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. For escalating Employee Expenses, Inflation index based on CPI
was considered. The data for CPI was taken from the website of the Labour Bureau,
Govt. of India. For estimating R&M Expenses, RInfra-D considered Inflation index
based on WPI. The data for WPI was taken from the Office of Economic Advisor,
Govt. of India. RInfra-D considered mix of 60% CPI and 40% WPI for projecting
A&G expenses. 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 136 of 302

Index Basis Value
Employee Expense CPI 9.28%
Repairs and Maintenance WPI 7.02%
Administrative Expenses Mix of CPI and WPI 8.38%


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 137 of 302

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 TPC-
D 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 138 of 302

Average Growth rate
for FY 12-13

Actuals as per ARR 388.5 427.04 592.49
Wage Revision Impact 32 52 (84)
Total 420.5 479.04 508.49 6.15%

Average Growth rate
for FY 12-13

Actuals as per ARR 186.28 167.01 225.07
Wage Revision Impact 16.38 11.25 (27.63)
Total 202.66 178.26 197.44 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)

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 139 of 302

3.13 Interest on Working Capital and Security Deposits

3.13.1 RInfra-Ds 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
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Interest on Working Capital-Wires
70.26 84.93 84.92 91.14
Interest on Working Capital-Retail
21.03 20.92 18.86 20.24
Total Interest on Working Capital
91.29 105.85 103.78 111.39


Page 140 of 302

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
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 141 of 302

(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
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)
Retail Supply 70.26 72.65 63.92 52.78
Wires 21.54 24.91 27.07 29.43
Total 91.80 97.56 90.99 82.21

Page 142 of 302

3.14 Income Tax
3.14.1 RInfra-Ds Submissions
3.14.1.1 RInfra-D submitted that in its Business Plan Order in Case No. 158 of 2011 the
Commission approved income tax equivalent to an amount approved by the
Commission in its Order in Case No. 180 of 2011 dated 15 June, 2012. In the Order
in Case No. 180 of 2011, the Commission computed income tax based on the Profit
before tax method and had allowed income tax on the segmental profit. The same
income tax amount of Rs.53.87 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.

3.14.1.2 The details of the income tax projections as submitted by RInfra-D, is as given in
the table below:

Table 100: Income Tax projections as submitted by RInfra-D (Rs. Cr)
Income Tax (Retail) 46.17 46.17 46.17 46.17
Income Tax (Wires) 7.70 7.70 7.70 7.70
Total Income Tax 53.87 53.87 53.87 53.87
3.14.2.1 For computation of income tax for FY 2012-13 to FY 2015-16, the MERC (MYT)
Regulations, 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. The said Regulation is reproduced below for reference:
34.1 The Commission in its MYT Order shall provisionally approve Income Tax
payable for each year of the Control Period, if any, based on the actual income
tax paid on permissible return as allowed by the Commission relating to
electricity business regulated by the Commission, as per latest Audited Accounts
available for the applicant, subject to prudence check.
Page 143 of 302

...
34.2 Variation between Income Tax actually paid and approved, if any, on the
income stream of the regulated business of Generating companies, Transmission
licensees and Distribution licensees shall be reimbursed to /recovered from the
Generating Companies, Transmission Licensees and Distribution Licensees,
based on the documentary evidence submitted at the time of Mid-term
Performance Review and MYT Order for the third Control Period, subject to
prudence check."
3.14.2.2 Since, the recovery of the Income Tax through the ARR and tariffs will be viewed
as income by the Income Tax authorities, the Income Tax component for FY 2011-
12 has to be duly grossed up by the applicable tax rate (Corporate tax rate of
33.99% or MAT rate of 20.96%) in the year of recovery, in accordance with the
various Judgments issued by the Hon'ble ATE in this regard. Accordingly, the
Income Tax amount of Rs. 0 Crore considered for recovery for FY 2011-12, has
been grossed up by the applicable tax rate, thereby, resulting in an amount of Rs. 0
Crore to be allowed for recovery, in the next tariff period when it is actually offered
to tax.
3.14.2.3 In accordance with the MERC MYT Regulations, 2011, 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, since that is the latest year for which audited accounts/ information has
been submitted and prudence check has been undertaken by the Commission.
Further, 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.
3.14.2.4 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. Crore)
Income tax 0.00
0.00 0.00 0.00
Page 144 of 302

3.14.2.5 Further, as per Regulation 34 of the MERC MYT Regulations, 2011, the
distribution company is required to bill the income tax under a separate head called
Income Tax Reimbursement. However, if income tax is allowed as separate
reimbursement, it may lead to some problems in claiming expenses with income tax
authorities. In view of this, the Commission in exercise of its powers under
Regulation 100 Power to remove difficulties of the MERC (MYT) Regulations,
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.
3.15 Contribution to Contingency Reserves


3.15.1.1 RInfra-D submitted that it has projected for Contingency Reserve Contributions
during the MYT plan period by considering 0.25% of opening GFA value as
contribution to Contingency Reserve. It is in accordance with Regulation 36.1 of the
MERC MYT Regulations, 2011:
36.1 Where the Transmission Licensee or Distribution Licensee has
made an appropriation to the Contingency Reserve, a sum not less than
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:

3.15.1.2 The details of contribution to Contingency Reserves as submitted by RInfra-D, is as
under:

Table 102: Contribution to Contingency Reserves as submitted by RInfra-D (Wires, Rs.
Crore)
Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Opening balance of GFA 3644.68 3968.32 4317.42 4762.9
% Contribution 0.25% 0.25% 0.25% 0.25%
Contribution to Contingency Reserve 9.11 9.92 10.79 11.91
Page 145 of 302

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

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)
Particulars
FY 2012-
13
FY 2013-
14
FY 2014-
15
FY 2015-
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
3.16.1.1 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 146 of 302

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 147 of 302

3.16.1.2 In reply to the Commissions 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

Category
Recovery (Rs. Crore)
LT-I Residential (Single phase) 6.18
LT-I Residential (Three phase) 1.28
LT-II (A) Commercial 8.67
LT-II (B) Commercial 0.17
LT-III Industrial 0.34
LT-IV Industrial 0.07
LT-V Advertisement & Hoardings 0.05
LT-VII (A) Temporary Supply Religious 0.01
LT-VII (B) Temporary Supply Others 0.48
Total 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)
Particulars
FY 2012-
13
FY 2013-
14
FY 2014-
15
FY 2015-
16
Non-Tariff Income - Retail
Supply
155.08 164.47 174.45 189.30

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

Page 148 of 302

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 Non-
tariff Income, which is as under:

Table 108:Non-tariff Income approved by the Commission for Retail supply (Rs. Crore)
Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
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)
Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Total Non-Tariff Income - Wires 20.67 22.35 24.20 26.23

3.17 Income from Other Businesses

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-Ds Devidas Lane Office till such time the building at Santacruz is
Page 149 of 302

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 1/3
rd
of 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
Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Area occupied by Corporate business
(Office / Shared)
53,089 53,089 53,089 53,089
Rate (per sq. ft) 116.67 128.34 141.17 155.29
Total Rental Income from Devidas Lane
office (Rs Crore)
7.43 8.18 8.99 9.89

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 150 of 302

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 151 of 302

3.17.1.5 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 MERC MYT Regulations, 2011:

80.1 Where the Distribution Licensee has engaged in any Other
Business, 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:
3.17.1.6 Further, RInfra-D submitted that it has let out its receiving station roof-tops to
Reliance Communication Ltd. for installation of BTS towers and other equipment.
The transaction is on arms length basis and has been done under an agreement dated
21 April, 2010. Accordingly, as per the provisions of Regulations, 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, no
adjustment is considered in retail business ARR). The rent agreement provides for
an escalation in rental of 25% after five years. The rental income has been
considered as per the annual accounts for FY 2011-12. 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.

3.17.1.7 In addition to above, 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. The kiosks shall generate rental income for RInfra-D and shall also
entail certain expenses of capital and maintenance nature. RInfra-D submitted that it
has already intimated the Commission about the said arrangement vide letter dated 9
September, 2011. 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. 180 of 2011, and
thereafter estimated.
Page 152 of 302

3.17.1.8 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. Cr)
Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Rental Income from Devidas Lane office 7.43 8.18 8.99 9.89
Land Usage Charges (EHV Station) 6.91 6.91 6.91 6.91
Income from Other Business - rental income
from RCom Towers
0.6 0.6 0.6 0.75
Income from Other Business - advertisement
Kiosks
0.16 0.16 0.66 0.93
Total (A) 15.1 15.85 17.16 18.48
B 1/3rd of (A) considered as income from
other business
5.03 5.28 5.72 6.16

3.17.2.1 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-Ds land and rental
income from Devidas lane office, as income from other business. The Commission
opines that this income is recognised only to correctly account the costs involved in
business operations of the respective licensees. Also it is important to reflect the true
expenditure for each of the licensed business and also recover the same from the
respective licensees consumer. In the present case, the expense and income is
occurring between the regulated businesses of the same parent company in the same
State.
3.17.2.2 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.
3.17.2.3 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. Crore)
Page 153 of 302

Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Income from other business
0.25

0.25

0.42

0.56

3.18 Past Recovery of TPC-G

3.18.1.1 The Commission approved the past recoveries of the TPC-G, while carrying out the
truing up for FY10 and FY11, vide Order dated 15 February, 2012 in Case No. 105
of 2011.
3.18.1.2 TPC-G filed a petition with the Commission under Case No.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. The quantum of the past recoveries sought by TPC-
G was of the tune of Rs 84.50 Crore.
3.18.1.3 RInfra-D has considered the above mentioned charges of Rs.84.50 Crore payable by
RInfra-D, as a cost in the present MYT petition, in FY 13-14.
3.18.1.4 The Commission in this Order has considered Rs 165.68 Crore as approved in its
Order dated5 June 2013 in Case No. 177 of 2011 in the matter of petition filed by
TPC-G, 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.
3.18.1.5 The Commission has also considered interest on FAC charges that is passed on to
consumers of Rs 2.96 Crore, as FAC charged to the consumers includes this amount
and since same is considered in the revenue side, hence, the Commission has also
allowed Rs 2.96 Crore as an expense item in ARR.

3.19 Wire Availability and Supply Availability
3.19.1 Wire Availability
3.19.1.1 As regards Wires Availability, Regulation 84 of MERC MYT Regulations, 2011
specifies as follows:

Page 154 of 302

84.1 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, Rate of Return on Equity Capital shall be reduced by 0.1%:
Provided further that for every 1 percent over-achievement in Wires Availability,
Rate of Return on Equity Capital shall be increased by 0.1%.
84.2 Wires Availability shall be computed in accordance with the following
formula:
Wires Availability = (1- (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, Period for Giving Supply and
Determination of Compensation) Regulations, 2005, as amended from time to
time.
84.3 Wires Availability shall be measured over the course of a year and shall be
expressed in percentage terms.

3.19.1.2 RInfra-D in reply to data gaps, has submitted that its wires availability for last two
year is 99.98%, which is shown as under

S.No. Particulars
FY 2011-12 FY 2012-13
Actuals Actuals

a) SAIDI (in Hrs) 1.6 2.1

b) Wires Availability (%) 99.98 99.98

Page 155 of 302

3.19.1.3 As regards the target for Wires availability, the Commission has analysed the data
submitted by RInfra-D, i.e., actuals for FY 2011-12 and FY 2012-13 from which it
is observed that wires availability for RInfra-D is 99.98% for FY 2011-12 and FY
2012-13. Accordingly, the Commission has stipulated the trajectory of Wires
Availability at 99.98% during the Control Period. Further, 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.
3.19.2 Supply Availability
3.19.2.1 As regards Supply availability, Regulation 97 of MERC MYT Regulations, 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
97.2 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, 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, rate
of Return on Equity Capital shall be reduced by 0.1%.
Provided that for every 1 percent over-achievement in Supply Availability, rate of
Return on Equity Capital shall be increased by 0.1%.
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.
Page 156 of 302

97.4 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.

3.19.2.2 RInfra-D in reply to data gaps, has submitted that its supply availability for last two
year is 110% and 116%.
3.19.2.3 The Commission is of the view that in Mumbai Supply Area, load shedding is not
done, and the Distribution Licensees have been allowed to purchase high cost power
to avoid load shedding in extreme cases, and in such a scenario RInfra-D must have
Supply Availability of 100% during the Control Period. Any incentive/disincentive
for achieving Supply Availability above/below the targeted Supply Availability
shall be considered at the time of Truing-up.
3.20 Aggregate Revenue Requirement

3.20.1.1 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- Retail Supply
Business (Rs. Crore)
S.No. Particulars FY12-13 FY13-14 FY14-15 FY15-16
1 Power Purchase Expenses 3523.37 3578.84 3276.20 3446.53
2 Operation & Maintenance Expenses 304.84 311.62 339.64 370.19
3
Depreciation Expenses

a)
Depreciation
16.69 18.52 20.45 22.42
4 Interest on Long-term Loan Capital 16.54 17.46 18.44 19.35
5
Interest on Working Capital and on consumer security
deposits
70.26 84.93 84.92 91.14
6 Income Tax 46.17 46.17 46.17 46.17
7 Transmission Charges - intra-State 265.39 278.66 292.59 307.22
8
Contribution to contingency reserves
1.27 1.34 1.41 1.50

9 Total Revenue Expenditure 4244.53 4337.54 4079.82 4304.52
10 Return on Equity Capital 28.09 29.62 31.34 33.17
11 Aggregate Revenue Requirement 4272.62 4367.16 4111.16 4337.69
Page 157 of 302


12 Less: Non Tariff Income 155.08 164.47 174.45 189.30
13 Less: Income from Other Business 0.00 0.00 0.00 0.00
14 Add: TPC-G Charge 84.50
15 Aggregate Revenue Requirement from Retail Tariff 4117.54 4287.19 3936.71 4148.39

Table 114: Aggregate Revenue Requirement submitted by RInfra-D- Wires Business (Rs.
Crore)
S.No. Particulars
FY
12-13
FY
13-14
FY
14-15
FY
15-16

1 Power Purchase Expenses
3

a)
Depreciation
166.12 182.48 202.71 224.75
5
Interest on Working Capital and on consumer security
deposits
21.03 20.92 18.86 20.24
6 Income Tax 7.70 7.70 7.70 7.70
7
9.11 9.92 10.79 11.91



13
Aggregate Revenue Requirement from Wires
Business
1190.12 1225.93 1324.14 1436.07

Page 158 of 302

Table 115: Total Aggregate Revenue Requirement submitted by RInfra-D- (Retail Supply
+Wires) Business (Rs. Crore)

S.No. Particulars
FY
12-13
FY
13-14
FY
14-15
FY
15-16

3

a)
Depreciation
182.81 201.00 223.16 247.17
5
Interest on Working Capital and on consumer
security deposits
91.29 105.85 103.78 111.39
6
Provisioning for Bad & Doubtful Debts
0.00 0.00 0.00 0.00
7
Other Expenses
0.00 0.00 0.00 0.00
8 Income Tax 53.87 53.87 53.87 53.87
10
10.38 11.26 12.21 13.41

0.00
16 Add: TPC-G Charge 0.00 84.50 0.00 0.00
17
Aggregate Revenue Requirement from
Retail and Wires Business
5307.66 5513.13 5260.85 5584.46

3.20.1.2 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- Retail Supply
Business (Rs. Crore)
3

a)
Depreciation
16.69 18.45 20.43 22.40
5
security deposits
70.26 72.64 63.84 52.69
Page 159 of 302

6 Income Tax 0.00 0.00 0.00 0.00
8
1.27 1.34 1.41 1.50


13 Less: Income from Other Business
14 Add:TPC-G Charge 165.68
15 Interest on FAC charges 2.96
16
Retail Tariff
4099.09 4125.10 3859.19 4074.48

Table 117: Aggregate Revenue Requirement approved by the Commission- Wires Business
(Rs. Crore)

1 Power Purchase Expenses
3

a)
Depreciation
165.73 181.25 198.71 218.59
5
security deposits
21.54 24.91 27.07 29.43
6 Income Tax 0.00 0.00 0.00 0.00
7
9.09 9.90 10.69 11.61



13
Aggregate Revenue Requirement from Wires
Business
1152.53 1164.29 1240.13 1325.90

Page 160 of 302

Table 118: Total Aggregate Revenue Requirement approved by the Commission- (Retail
Supply +Wires) Business (Rs. Crore)

S.No. Particulars
FY12-13 FY13-14 FY14-15 FY15-16
Approved Approved Approved Approved

3

a)
Depreciation
182.41 199.70 219.15 240.99
5
security deposits
91.80 97.54 90.91 82.12
6
Provisioning for Bad & Doubtful Debts
0.00 0.00 0.00 0.00
7
Other Expenses
0.00 0.00 0.00 0.00
8 Income Tax 0.00 0.00 0.00 0.00
10
10.36 11.23 12.10 13.11


16 Add: TPC-G Charge 1.00 165.68 0.00 0.00
17 Add: Interest on FAC 2.96
18
Retail and Wires Business
5251.62 5289.39 5099.32 5400.38

Page 161 of 302

4. RECOVERY OF REGULATORY ASSET
4.1 Quantification of Regulatory Asset till FY 2011-12
4.1.1.1 RInfra-D submitted Regulatory Asset/Revenue Gap from FY 2006-07 till FY 2011-
12 without carrying cost till FY 2011-12 which was as claimed in its Petition in
Case No. 124 of 2012 (Final Truing up of FY 2010-11 and FY 2011-12) as Rs.
2661.27 Crore. It included Rs. 1795.37 Crore as already approved Revenue Gap by
the Commission in its Order in Case No. 180 of 2011 dated 15 June 2012. Further,
RInfra-D applied carrying cost on cumulative revenue gap till FY 2011-12 in
accordance with the Honble ATE Judgment in RInfra-D Review Petition No.13 on
Appeal No.202/203 of 2010 dated 2 January, 2013. The relevant extracts of the
Judgment were submitted by RInfra-D as given below:

15. Accordingly, paragraphs 11.5 & 11.6 of the judgment dated
13.9.2012 may be amended to read as under:
11.5. The utility is entitled to carrying cost on its claim of legitimate
expenditure if the expenditure is:
accepted but recovery is deferred e.g. interest on regulatory assets, claim
not approved within a reasonable time, and disallowed by the State
Commission but subsequently allowed by the Superior authority. Revenue
gap as a result of allowance of legitimate expenditure in the true up.
11.6. The State Commission shall decide the claim of the appellant on the
above principles
16. The Review Petition is allowed. The State Commission is directed to
pass consequential order
4.1.1.2 RInfra-D in this Petition submitted cumulative Regulatory Asset including carrying
cost till FY 2011-12 as Rs. 3674.72 Crore.
4.1.1.3 RInfra-D further submitted that the Honble ATE clarified that all legitimate
expenditure, 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, should be eligible for carrying cost.
Page 162 of 302

4.1.1.4 RInfra-D submitted that the cumulative revenue gap till FY 2011-12 including
carrying cost, 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, i.e., 16% for both Distribution Wires as well as
Retail Supply business as per the Maharashtra Electricity Regulation Commission
(Terms & Conditions of Tariff) Regulations, 2005.
4.1.1.5 RInfra-D further submitted that since FY 2012-13 is over and the new MYT tariff
would be applicable from FY 2013-14 onwards, 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.
4.1.1.6 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. Crore)
S.No. Particulars
FY
2006-07
FY
2007-08
FY
2008-09
FY
2009-10
FY
2010-11
FY
2011-12
1 Revenue gap 23.95 56.93 328.67 1,188.61 551.47 511.64

Debt portion 70% 70% 70% 70% 70% 70%

Equity Portion 30% 30% 30% 30% 30% 30%

2
Revenue Gap for FY 08-09 as
per order of MERC in Case No.
121 of 2008

680.11

Debt portion

476.08

Equity Portion

204.03

Carrying cost for Debt portion

Interest rate for respective
years
10.75% 11.50% 12.75% 13.00% 11.75% 14.75%

Opening Balance - 17.67 61.84 314.46 1,302.15 1,863.86

Additions for the year 16.77 39.85 230.07 832.03 386.03 358.15

Interest 0.90 4.32 22.55 155.66 175.68 301.33

Closing Balance 17.67 61.84 314.46 1,302.15 1,863.86 2,523.34

Carrying cost for Equity
portion

ROE (%) for respective years 16% 16% 16% 16% 16% 16%

Opening Balance - 7.76 27.45 138.33 578.21 849.41

Additions for the year 7.19 17.08 98.60 356.58 165.44 153.49
Page 163 of 302

S.No. Particulars
FY
2006-07
FY
2007-08
FY
2008-09
FY
2009-10
FY
2010-11
FY
2011-12

Interest 0.57 2.61 12.28 83.30 105.75 148.18

Closing Balance 7.76 27.45 138.33 578.21 849.41 1,151.08

Total Revenue
Gap/Regulatory asset with
Carrying Cost
25.43 89.29 452.79 1,880.36 2,713.26 3,674.42

4.1.1.7 RInfra-D vide its letter reference no RInfra-D/ MERC/ MYT FY 13-16/ 025 dated
23 May 2013, submitted that Honble 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. 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.
4.1.1.8 RInfra-D further in the above mentioned letter estimated the total additional amount
to be allowed as Rs 11.23 Crore.
4.2 Commissions Rulings
4.2.1.1 The Commission in its Order dated 4 April 2013 in Case 124 of 2012, has approved
total Regulatory Asset till FY 2011-12 as Rs 2451.95 Crore and same has been
considered for the purpose of this Petition by the Commission.
4.2.1.2 In accordance with Honble APTEL Judgment dated 20 May 2013 in Appeal no. 85
of 2012, regarding issue of allowance of efficiency gains on assessed sales also, the
Commission has allowed additional sharing of efficiency gains of Rs 11.23 Crore.
4.2.1.3 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,
as there is no provision in MERC Tariff Regulations, 2005 and MERC MYT
Regulations, 2011 to allow such additional ROE. Hence, 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. The cumulative
Page 164 of 302

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. Crore)

Particulars FY
06-07
FY
07-08
FY
08-09
FY
09-10
FY
10-11
FY
11-12
Revenue gap
23.95 39.32 328.67 1,187.71 529.13 354.40
Debt portion
100% 100% 100% 100% 100% 100%
Revenue Gap for FY 08-09 as per
order of MERC in Case No. 121 of
2008*

680.11

Debt portion 680.11
Carrying cost for Debt portion
Interest rate for respective years
10.75% 11.50% 12.75% 13.00% 11.75% 14.75%
Opening Balance - 25.24 69.72 428.23 1,835.53 2,611.42
Additions for the year
23.95 39.32 328.67 1,187.71 529.13 354.40
Carrying Cost
1.29 5.16 29.84 219.59 246.76 411.32
Closing Balance
25.24 69.72 428.23 1,835.53 2,611.42 3377.14
Total Regulatory asset with
Carrying Cost
25.24 69.72 428.23 1,835.53 2,611.42 3377.14

4.3 Regulatory Asset Recovery Mechanism
4.3.1 Proposed Recovery Mechanism
4.3.1.1 RInfra-D submitted that in Order in Case No. 72 of 2010 dated 29 July, 2011, the
Commission classified consumers into three groups for the purpose of determining
the recovery of cumulative revenue gap/regulatory assets, 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. 50 of
2009, detailing the operating procedures to be followed in case of changeover.
RInfra- D proposed to apportion the Cumulative Regulatory Asset of Rs 3674.42
Crore till FY 2011- 12, between RInfra-D Own consumer and Changeover
consumers based on ratio of Own sales and Changeover sales of RInfra-D for FY
2011-12, as given in the table below:
Table 121: Bifurcation of Regulatory Asset to Own and Changeover consumers as
Page 165 of 302

Particulars
Amount
(in Rs. Cr)
Opening Balance of recovery in FY13 3,674.42
FY 2011-12 Own Sales 6,386.93
FY 2011-12 Change Over Sales 2,663.39
Revenue Gap (RInfra-D Own consumers) 2,593.09
Revenue Gap (RInfra-D Changeover consumers) 1,081.33

4.3.1.2 RInfra-D proposed the recovery of the Revenue Gap over the period FY 2012-13 to
FY 2018-19, i.e., over a period of six years from FY 2013-14 so as to prevent tariff
shock to the consumers. RInfra-D submitted that since, the recovery was spread
over 6 years; there will be further accumulation of interest (carrying cost) on the
outstanding average balance of each year.
4.3.1.3 RInfra-D has estimated the carrying cost from FY 2012-13 onwards considering
70:30 debt: equity and weighted average cost of capital as 14.80% based on the rate
of raising debt of 14.5% based on SBI Advance Rate (SBAR) and rate of return on
equity invested as 15.5%. RInfra-D proposed that Regulatory Assets are recovered
as a separate line item and not merged with retail tariff. 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
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
FY
2016-17
FY
2017-18
FY
2018-
19
Carrying Cost rate 14.80% 14.80% 14.80% 14.80% 14.80% 14.80% 14.80%
Opening Balance (Rs.
Crore)
2,593.09 2,976.86 2,480.72 1,984.58 1,488.43 992.29 496.14
Recovery from
opening balance (Rs.
Crore)
- 496.14 496.14 496.14 496.14 496.14 496.14
Closing Balance (Rs.
Crore)
2,593.09 2,480.72 1,984.58 1,488.43 992.29 496.14 -
Carrying cost for the
year (Rs. Crore)
383.78 403.86 330.43 257.00 183.57 110.14 36.71
Total Recovery (Rs.
Crore)
383.78 900.01 826.58 753.15 679.72 606.29 532.86
Smoothened
recovery
0.00 716.43 716.43 716.43 716.43 716.43 716.43
Page 166 of 302

Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
FY
2016-17
FY
2017-18
FY
2018-
19
(Rs. Crore)
RInfra-D Own sales
(MU)
6,346.36 6,593.68 6,790.34 7,020.09

Avg. per unit
Recovery (Rs. / kWh)
1.09 1.06 1.02

4.3.1.4 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.e. switchover to the other distribution licensees network) due to effect of Order
in Case No. 151 of 2011.
4.3.1.5 RInfra-D also submitted that Regulatory Asset Charge cannot be fixed assuming
such a large scale conversion to Group III, when the same has not yet happened and
if the same conversion to Group III is assumed, the sales from Changeover
consumers would significantly decline and the per-unit Regulatory Asset Charge
would substantially increase.
4.3.1.6 RInfra-D further submitted that since the Regulatory Asset Charges would be
published and come into effect immediately upon issue of MYT Order, RInfra-D
would start charging the same to change-over consumers, even though actual
Switchover may not have happened till then. RInfra-D has submitted that all sales
Own or Migrated were considered for ex-ante determination of Regulatory Asset
Charge by RInfra-D. 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
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
FY
2016-17
FY
2017-18
FY
2018-19
Opening Balance (Rs.
Crore)
1,081.33 1,241.37 1,034.48 827.58 620.69 413.79 206.90
Recovery from opening
balance (Rs. Crore)
- 206.90 206.90 206.90 206.90 206.90 206.90
Closing Balance (Rs. 1,081.33 1,034.48 827.58 620.69 413.79 206.90 -
Page 167 of 302

Crore)
year (Rs. Crore)
160.04 168.41 137.79 107.17 76.55 45.93 15.31
Total Recovery (Rs.
Crore)
160.04 375.31 344.69 314.07 283.45 252.83 222.21
Smoothened recovery
(Rs. Crore)
0.00 298.76 298.76 298.76 298.76 298.76 298.76
Total Migration Sales
(MU) including
Switchover Sales
3,076.30 3,236.05 3,409.16 3,587.91

Avg. per unit
Recovery (Rs. / kWh)
0.92 0.88 0.83

4.3.1.7 RInfra-D further submitted that the actual charge applicable to a consumer category
would be dependent on the K factor, which was determined by dividing the
consumer categorys approved ABR by the overall ACoS of RInfra-D for any given
year.
4.3.1.8 RInfra-D proposed that during the recovery period if any consumer terminates its
contract with RInfra-D, the outstanding un-recovered regulatory asset amount from
such consumer shall be recovered in the following manner:
Balance Recovery = A * B
i
* C
i
(in Rs)

A - Avg. monthly consumption for last 12 months (or available period if
less than 12 months) (in units)
B
i
- Balance recovery period (in months) for year i
C
i
- Charge specified for relevant category (in Rs/unit) for year i

4.3.1.9 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. After adjustment of the same, the balance outstanding liability could be
cleared by the outgoing consumer in one goes as indicated in the formula above. In
such case, the Charge specified
Ci
would be discounted for the future carrying cost
included in the said charge.
Page 168 of 302

b) If the consumer, however, opts for monthly payment of Regulatory Asset charge, the
recovery would continue in the normal manner at the specified charge multiplied by
months 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. RInfra-D also
proposed that a separate Regulatory Asset recovery account would be maintained
which shall maintain opening balance of Regulatory Asset plus interest, amount set
off (recovered) during the year and the closing balances each year. If, however, for
any reason, the amount remains un-recovered, the same shall remain identified with
the premises for the purpose of recovery.
4.3.1.10 RInfra-D further submitted that any under-recovery or over-recovery each year,
within the six-year period of recovery proposed, was to remain within the
Regulatory Asset basket only and not passed on to the retail ARR. At the end of the
six-year recovery period, however, if there remained any over or under-recovery
vis--vis the approved Regulatory Assets, the same would be absorbed within
RInfra-Ds ARR.

4.3.2.1 The Commission is the opinion that the Regulatory Asset needs to be collected from
the consumers connected to the RInfra-D network, i.e., retail supply consumers and
Changeover consumers.
4.3.2.2 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. The relevant extracts of the
Commissions ruling in Case No. 72 of 2010 is as given below:
h) Given this background, the applicability of the charges to recover the
regulatory assets for the above Groups and the rationale for the same are
discussed below:
Page 169 of 302

i) Group I: will have to pay the charges for recovery of regulatory assets,
since they continue to be consumers of RInfra-D, both for Wires as well as
Supply.
ii) Group II: will have to pay the charges for recovery of regulatory
assets, 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, since they are no longer consumers of RInfra-D, either for Wires or
Supply, and charges can be levied by a licensee only on a 'consumer'.
Accordingly, RInfra-D should propose recovery of the regulatory asset
from Group I and Group II consumers, in the subsequent years.
4.3.2.3 Hence, the Commission has approved recovery of Regulatory Asset Charge from
Group I and Group II consumer, which are connected to the RInfra-D network and
sourcing power either from RInfra-D or TPC-D.
4.3.2.4 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. Also, the Regulatory Asset Liability needs to be shared
equally by all the consumers of RInfra-D network (Changeover and Direct
consumers). Hence, the Commission is also of the opinion that Regulatory Asset
needs to be borne equally by Direct Consumers and Changeover consumers.
4.3.2.5 The Commission has accepted the interest rate of 14.5% as cost of debt as submitted
RInfra-D for the purpose of calculating the carrying cost for the second Control
Period. However, the Commission has considered the Regulatory Asset would be
funded entirely by debt component, as explained earlier in this section.
4.3.2.6 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
FY 12-
13
FY 13-14 FY 14-15
FY 15-
16
FY 16-17 FY 17-18 FY 18-19
Opening Balance 3,377.14 3,866.83 3,222.35 2,577.88 1,933.41 1,288.94 644.47
Recovery from
opening balance
- 644.47 644.47 644.47 644.47 644.47 644.47
Page 170 of 302

Closing Balance 3,377.14 3,222.35 2,577.88 1,933.41 1,288.94 644.47 -
year
489.69 513.97 420.52 327.07 233.62 140.17 46.72
Total Recovery 489.69 1,158.44 1,064.99 971.54 878.09 784.64 691.20
Smoothened recovery 924.82 924.82 924.82 924.82 924.82 924.82
RInfra-D Own sales
and Changeover Sales
10,141 10,664 11,229
Recovery charge per
unit
0.91 0.87 0.82

4.3.2.7 The Commission is also of the opinion that Regulatory Asset Charge shall be
recovered from the consumers on a proportionate basis, which is as under:
Table 125: Regulatory Asset Charge approved by the Commission (Rs/kWh)

FY 14-
15
FY
15-16

LT
LT -I Residential

0-100 0.48 0.52 0.56
101-300 0.84 0.74 0.75
301-500 1.12 0.86 0.89
501 and above 1.47 1.17 1.07
LT II (a) - 0-20 kW 1.05 1.03 0.84
LT II (b) -> 20 to 50 kW 1.40 1.31 1.01
LT II (c) - above 50 kW 1.46 1.39 1.22
LT-VII (A): LT -Temporary Supply Religious 0.84 0.85 0.84
LT VIII: LT - Crematorium & Burial Grounds 0.64 0.77 0.86
LT X- Public Services 1.09 1.04 0.92

HT

HT I: HT-Industry 1.12 1.00 1.05
Page 171 of 302

FY 14-
15
FY
15-16
HT - Railway 1.19 1.12 1.01
HT Public Services 1.19 1.12 1.01

4.3.2.8 The Commission has approved RAC as a separate charge, as this liability pertaining
to the past period needs to be borne by consumers who are connected to the RInfra-
D distribution network, i.e., the direct retail sale consumers and changeover
consumers. For levying the RAC to the changeover consumers, it should be a
separate charge and not merged with the retail tariff.
4.3.2.9 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, Recovered Regulatory Asset and closing
balance of Regulatory Asset for a year. Hence, the Commission has approved RAC
as a separate charge and directs RInfra-D to maintain a separate account for
Regulatory Asset Charge recovery.
4.3.2.10 As regards to creation of a liability on a consumer, if consumers decides to
terminate its contract, the Commission is also of the opinion that a distribution
licensee should be considered to be operating on a Going concern basis, which is
one of the fundamental assumptions in accounting on the basis of which financial
statements are prepared. The Commission also notes that there would be new
consumers being added to the consumers who will also be paying Regulatory Asset
Charge. Hence, 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 recovery of RAC from such
consumers shall stop. Further, 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.
4.3.2.11 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 172 of 302

with RInfra-D as on date of termination of the contract, 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 173 of 302

5. TARIFF PHILOSOPHY
5.1 Wheeling Charges and Wheeling Losses
5.1.1 RInfra-D submission on Wheeling Charges
5.1.1.1 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-Ds network, which are as under:
Table 126: Existing Wheeling Charges as submitted by RInfra-D
Particulars HT LT
Wheeling Charges (Rs per kWh) 0.46 0.88

5.1.1.2 RInfra-D further submitted that for the purpose of estimation of income from
wheeling charges, it has not considered any revision in wheeling charges for FY
2012-13. For the remaining years of the second Control Period, i.e., from FY 2013-
14 to FY 2015-16, 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.
5.1.1.3 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. The Wheeling Charges for
the Second Control Period from FY 2012-13 to FY 2015-16 as submitted by RInfra-
D 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
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Determination of Wheeling Charges

Revenue Requirement from Wire Business
(Rs Crore)
1,190.12 1,225.93 1,324.14 1,436.07
Total Sales (Own + Migration) (MU)
9,422.66 8,160.17 7,316.40 7,568.84
Wheeling Charges per unit (Rs/kWh)
1.26 1.50 1.81 1.90

Distribution of Charges between HT and LT
Network
GFA attributable to HT network (Rs Crore) 55% 55% 55% 55%
GFA attributable to LT network (Rs Crore) 45% 45% 45% 45%
Charge recoverable for HT Network (Rs Crore) 654.57 674.26 728.27 789.84
Charge recoverable for LT Network(Rs Crore) 535.55 551.67 595.86 646.23
Page 174 of 302

Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16

consumers
HT Sales (MU) 1,125.66 842.84 645.68 739.60
LT Sales (MU) 8,297.00 7,317.33 6,670.72 6,829.24
Charge recoverable for HT consumers (Rs
Crore)
78.20 69.64 64.27 77.18
Charge recoverable for LT consumers (Rs
Crore)
1,111.92 1,156.29 1,259.86 1,358.89

Wheeling Charges applicable/proposed

HT Category (Rs/kWh) 0.46 0.83 1.00 1.04
LT Category (Rs/kWh) 0.88 1.58 1.89 1.99

5.1.1.4 RInfra-D has submitted the wheeling losses of 1.94% for HT Category and 9% for
LT Category.
5.1.2.1 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)


Existing Revised Revised Revised
Revenue Requirement from Wire Business

1,152.53

1,164.29

1,240.13

1,325.90
Total Sales (Own + Migration) (MU)
10,140.74 10,664.29 11,228.53

Network

GFA attributable to HT network

55% 55% 55%
GFA attributable to LT network

45% 45% 45%
Charge recoverable for HT Network (Rs
Crore)

640.36

682.07

729.24
Charge recoverable for LT Network(Rs
Crore)

523.93

558.06

596.65

consumers

Page 175 of 302

HT Sales (MU) 1,125.66 1,312 1,429 1,576
LT Sales (MU) 8,297.00 8,829 9,236 9,653
Charge recoverable for HT Network (Rs
Crore)

82.84

91.38

102.33
Charge recoverable for LT Network(Rs
Crore)

1,081.45

1,148.76

1,223.57

Wheeling Charges
HT (Rs/ kWh) 0.46 0.63 0.64 0.65
LT (Rs/ kWh) 0.88 1.22 1.24 1.27

Revenue From Wheeling Charges of
Changeover Consumers

HT Sales (MU) 879 930 984 1041
LT Sales (MU) 2449 2617 2890 3168
Charge Recovered from HT Consumers

40.44

58.59

62.96

67.65
Charge Recovered from LT consumers

215.51

319.29

358.39

402.30
Total Revenue from Wheeling Charge
Recovered (Rs Crore) from Changeover
Consumers

255.95

377.88

421.35

469.95

5.1.2.2 The Commission has approved the wheeling loss of 1.94% for HT Category and 9%
for LT Category.
5.1.2.3 Further, the Commission rules that the applicable wheeling charges will be shown
separately in the bills of all consumers, irrespective of whether they are own
consumers or changeover consumers, so that the consumers are made aware of the
tariffs payable for creation of the distribution infrastructure.

5.2 Cross Subsidy Surcharge
5.2.1.1 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,

CSS is the cross subsidy surcharge for the relevant year
Page 176 of 302

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, expressed as a
percentage.

Further, T was the proposed Tariff for the respective years from the
period FY 2012-13 to FY 2015-16.
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. /kWh)
Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Marginal Power Purchase Cost per unit 4.99 5.13 4.88 5.03

L referred to the System Losses for the applicable voltage level,
expressed as a percentage. 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 177 of 302

Table 130: System Losses for CSS calculations as submitted by RInfra-D
Particulars
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Transmission Losses 4.85% 4.85% 4.85% 4.85%
Distribution Losses : HT network 1.94% 1.94% 1.94% 1.94%
Distribution Losses : LT network 9.00% 9.00% 9.00% 9.00%

D referred to the Wheeling Charges for usage of RInfra-D network. For
FY 2012-13, it was retained at the present level, while from FY 2013-14,
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
FY
2012-13
FY
2013-14
FY
2014-15
FY
2015-16
Wheeling Charges per unit HT 0.46 0.83 1.00 1.04
Wheeling Charges per unit LT 0.88 1.58 1.89 1.99

5.2.1.2 RInfra-D submitted that for FY 2012-13, the Cross Subsidy Surcharge recovery per
unit (Rs. / kWh) were retained as applicable at present, based on the Order in Case
No. 43 of 2010 dated 9 September, 2011. From FY 2013-14 to FY 2015-16, the
Cross Subsidy Surcharge per unit (Rs. / kWh) proposed for each year to be
recovered from the Changeover Consumers as given in the table below:

Table 132: CSS (Rs. /kWh) for the Second Control Period as submitted by RInfra-D
Particulars
Existing
FY 2012-13
FY
2013-14
FY
2014-15
FY
2015-16
LT

LT I - Below Poverty Line
- - - -

0-100
- - - -
101-300
- - - -
301-500
- 3.54 2.24 1.96
501 and above
0.03 5.23 3.97 3.69

Page 178 of 302

Particulars
Existing
FY 2012-13
FY
2013-14
FY
2014-15
FY
2015-16
0-100
- - - -
101-300
- - - -
301-500
- 3.53 2.23 1.95
501 and above
- 5.00 3.74 3.47
LT II (a) - 0-20 kW
- 2.51 1.97 1.97
LT II (b) - >20 to 50 kW
0.84 4.44 2.74 2.45
LT II (c) - above 50 kW
1.90 5.04 3.15 2.85
LT III - LT Industrial upto 20 kW
- 1.76 0.83 0.55
LT IV - LT Industrial above 20 kW
- 1.80 0.90 0.61
LT-V : LT- Advertisements and
Hoardings
8.35 13.17 12.07 12.30
LT VI: LT -Street Lights
- 2.77 2.20 2.17
LT-VII (A): LT -Temporary
Supply Religious
- 0.54 - -
LT-VII (B): LT -Temporary
Supply Others
5.51 11.09 9.88 9.96
LT VIII: LT - Crematorium &
Burial Grounds
- - - -
LT IX: LT -Agriculture
- - - -
HT

HT I: HT-Industry
- 1.96 1.44 1.30
HTII : HT- Commercial
0.26 2.91 2.10 1.86
HT III: HT-Group Housing Society
- 0.39 0.32 0.52
HTIV : HT - Temporary Supply
2.22 6.43 5.88 5.92
HT Railway
- - - -


5.2.2.1 As per Section 61 of the Act, tariff should progressively reflect the cost of supply
and reduce cross subsidies in the manner specified by the Commission.
5.2.2.2 Also, 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 179 of 302

5.2.2.3 It is clear from the above extracts the CSS needs to be determined for meeting
current level of cross subsidy of a distribution licensee.
5.2.2.4 Further, Regulation 13.8 of MERC (Distribution Open Access) Regulations, 2005 is
reproduced below:-
13.8 The Commission shall, based on the approved current level of cross subsidy,
stipulate the cross subsidy surcharge for each approved Tariff category and/or sub-
category and/or Tariff slab, of the Distribution Licensee. Emphasis added
5.2.2.5 Hence, the above mentioned extracts also emphasise on the current level of cross
subsidy as a basis of determination of CSS.
5.2.2.6 In light of the above stated Regulation, the Commission has proceeded with the
computation of CSS for RInfra-D based on the approved cost and tariffs determined
in this Order, for respective years of the second Control Period.
5.2.2.7 With regards to the objections raised by consumers and other stakeholders in the
Public consultation process, on the proposal of RInfra-D to increase the CSS, 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. Since, 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.
5.2.2.8 The Commission observed that there is a variance in formulae is in respect of
grossing up of the component C, wherein, RInfra-D has adopted C /(1-L/100)
instead of C *(1+L/100) specified in the formulae of CSS in Tariff Policy. The
Commission has computed the CSS as per formulae provided in the Tariff Policy.
5.2.2.9 The Commission opines that the CSS computation needs to be undertaken only as
per the approved values of various components of CSS formulae, which are as
under:
Computation of C
5.2.2.10 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, as elaborated in Section 3 of this Order
and is given in the table below:-

Page 180 of 302

Table 133: Marginal Cost of Power Purchase by RInfra-D approved by the
Commission (Rs/kWh)
Particulars
FY
2013-14
FY
2014-15
FY
2015-16
Marginal Power Purchase Cost per unit 5.13 3.75 3.75

Average Billing Rate (ABR)
5.2.2.11 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.

System Loss L
5.2.2.12 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, as elaborated in Section 3 of this Order.

5.2.2.13 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
FY
2013-14
FY
2014-15
FY
2015-16
Intra-State Transmission Losses 4.85% 4.85% 4.85%
Distribution Losses : HT network 1.94% 1.94% 1.94%
Distribution Losses : LT network 9.00% 9.00% 9.00%

Wheeling Charges D
Page 181 of 302

5.2.2.14 D referred to the Wheeling Charges for usage of RInfra-D network. For FY 2012-
13, it is retained at the present level, while from FY 2013-14 to FY 2015-16, 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
FY
2013-14
FY
2014-15
FY
2015-16
Wheeling Charges per unit HT 0.63 0.64 0.65
Wheeling Charges per unit LT 1.23 1.24 1.27

Approved Category wise Cross Subsidy Surcharge (CSS)
5.2.2.15 For FY 2012-13, the Cross Subsidy Surcharge recoveries per unit (Rs. / kWh) were
calculated as per applicable rates in FY 2012-13, based on the Order in Case No. 43
of 2010 dated 9 September, 2011. From FY 2013-14 to FY 2015-16, the Cross
Subsidy Surcharge per unit (Rs. / 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)
Particulars
T C C*(1+L%) W CSS
Rs/kWh Rs/kWh Rs/kWh Rs/kWh Rs/kWh

LT Category

2.16

5.13

5.86

1.23

-
LT -I Residential

-

0-100

3.65

5.13

5.86

1.23

-
101-300

6.82

5.13

5.86

1.23

-
301-500

8.54

5.13

5.86

1.22

1.46
501 and above

10.84

5.13

5.86

1.22

3.76
LT II (a) - 0-20 kW

8.39

5.13

5.86

1.22

1.30
LT II (b) - >20 to 50 kW

10.97

5.13

5.86

1.22

3.89
Page 182 of 302

Particulars
T C C*(1+L%) W CSS
11.35 5.13 5.86 1.22 4.27
LT III - LT Industrial upto 20
kW

8.33

5.13

5.86

1.22

1.25
LT IV - LT Industrial above
20 kW

8.46

5.13

5.86

1.22

1.38
LT-V : LT- Advertisements
and Hoardings

18.64

5.13

5.86

1.22

11.55

9.22

5.13

5.86

1.22

2.14
Supply Religious

8.49

5.13

5.86

1.22

1.41
Supply Others

17.10

5.13

5.86

1.22

10.01
Burial Grounds

4.64

5.13

5.86

1.23

-

1.86

5.13

5.86

1.23

-

HT Category
HT I: HT-Industry

8.66

5.13

5.48

0.63

2.55

9.80

5.13

5.48

0.63

3.69
HT III: HT-Group Housing
Society

6.45

5.13

5.48

0.63

0.33
HTIV : HT - Temporary
Supply

12.75

5.13

5.48

0.63

6.64
HT - Railway (New Category)

9.09

5.13

5.48

0.63

2.98
Note: a) CSS for LT- 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 C C*(1+L%) W CSS

LT Category
LT I - Below Poverty Line 2.26 3.75 4.29 1.24 -
LT -I Residential
0-100

3.54

3.75

4.29

1.24

-
101-300
Page 183 of 302

Particulars
T C C*(1+L%) W CSS
5.62 3.75 4.29 1.24 0.09
301-500

6.13

3.75

4.29

1.24

0.60
501 and above

7.93

3.75

4.29

1.24

2.40
LT II (a) - 0-20 kW

7.55

3.75

4.29

1.24

2.02
LT II (b) - >20 to 50 kW

9.45

3.75

4.29

1.24

3.92

9.87

3.75

4.29

1.24

4.34
kW

7.07

3.75

4.29

1.24

1.54
LT IV - LT Industrial above 20
kW

7.19

3.75

4.29

1.24

1.66
Hoardings

16.60

3.75

4.29

1.24

11.07

7.71

3.75

4.29

1.24

2.18
Supply Religious

7.94

3.75

4.29

1.24

2.41
Supply Others

16.09

3.75

4.29

1.24

10.56
Burial Grounds

5.05

3.75

4.29

1.24

-

1.85

3.75

4.29

1.24

-

HT Category

-

HT I: HT-Industry

7.15

3.75

4.01

0.64

2.49

8.69

3.75

4.01

0.64

4.04
Society

6.34

3.75

4.01

0.64

1.68

11.00

3.75

4.01

0.64

6.35

7.84

3.75

4.01

0.64

3.19
Railways (0-20 kW)

Table 138: Approved CSS for FY 2015-16 (Rs/kWh)
Particulars T C C*(1+L%) W CSS
Page 184 of 302


LT Category

2.37

3.75

4.29

1.27

-
LT -I Residential

-

0-100

3.48

3.75

4.29

1.27

-
101-300

5.29

3.75

4.29

1.27

-
301-500

5.76

3.75

4.29

1.27

0.20
501 and above

6.64

3.75

4.29

1.27

1.08
LT II (a) - 0-20 kW

5.83

3.75

4.29

1.27

0.26
LT II (b) - 20-50 kW

6.92

3.75

4.29

1.27

1.36

8.09

3.75

4.29

1.27

2.53
kW

6.07

3.75

4.29

1.27

0.51
kW

6.17

3.75

4.29

1.27

0.61
Hoardings

14.57

3.75

4.29

1.27

9.01

6.19

3.75

4.29

1.27

0.63
Supply Religious

7.39

3.75

4.29

1.27

1.83
Supply Others

14.09

3.75

4.29

1.27

8.53
Burial Grounds

5.15

3.75

4.29

1.27

-

2.00

3.75

4.29

1.27

-

HT Category
HT I: HT-Industry

6.84

3.75

4.01

0.65

2.18

7.60

3.75

4.01

0.65

2.94
Society

6.23

3.75

4.01

0.65

1.56

9.00

3.75

4.01

0.65

4.34

6.55

3.75

4.01

0.65

1.89
Page 185 of 302

Railways (0-20 kW)

5.3 Revenue Gap and Revenue requirement from retail tariff
5.3.1 Revenue Gap at existing tariff
5.3.1.1 RInfra-D has not proposed any change in tariff for the period FY 12-13. For FY
2012-13, 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. RInfra-D has proposed
that the revenue gap of FY 12-13 may be recovered from Tariff in the year FY 13-
14. 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 FY 13
ARR Retail Business 4117.54
ARR Wires Business 1190.12
Total 5307.66
Less Income from Wheeling Charges 234.67
Less Income from CSS 98.67
ARR (net) 4974.31
Revenue from Sale of Power 4633.53
Revenue Gap/ (Surplus) 340.79


5.3.2.1 The Commission has considered the computed the revised ARR of FY 2012-13, as
discussed in Section 3 of this Order. The Commission has approved the provisional
revenue of Rs 4441.6 Crore for FY 2012-13 and approved the revenue Gap at
existing tariff as under:

Page 186 of 302

Table 140: Revenue Gap for FY 2012-13 approved by the Commission (Rs
Crore)
Particulars FY 13
ARR Retail Business 4099.1
ARR Wires Business 1152.5
Total 5251.6
Less Income from existing Wheeling Charges 256.0
Less Income from existing CSS 98.7
ARR (net) requirement 4897.0
Revenue from Sale of Power at existing tariff 4441.6
Revenue Gap/ (Surplus) 455.4

5.3.3 Revenue requirement to be recovered from Revised Tariffs

5.3.3.1 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.
5.3.3.2 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. The same tariff has been
considered by RInfra-D to compute revenue from Existing tariff for FY 2013-14 to
FY 2015-16.
5.3.3.3 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 FY 13 FY 14 FY 15 FY 16
ARR Retail Business 4117.54 4287.19 3936.71 4148.39
ARR Wires Business 1190.12 1225.93 1324.14 1436.07
Total 5307.66 5513.12 5260.85 5584.46

Less Income from Wheeling Charges 234.67 212.94 81.56 89.75
Less Income from CSS 98.67 468.29 115.46 107.29
ARR Revenue Gap of FY 2012-13 340.79

ARR (net) 4974.31 5172.68 5063.83 5387.42
Revenue from Sale of Power 4633.53 5244.68 5444.34 5675.19
Revenue Gap/ (Surplus) 340.79 (72.00) (380.52) (287.78)
Average Cost of Supply (Rs/kWh) 7.84 7.84 7.46 7.67
Page 187 of 302


5.3.4.1 The Commission noted that RInfra-D has computed the revenue from CSS and
wheeling charges based on its revised proposal, while calculating the Revenue at the
existing tariff.
5.3.4.2 The Commission is of the view that for computing revenue for existing retail tariff,
CSS and wheeling charges for FY 2013-14, the existing prevailing applicable rates
at the end of FY 2012-13, shall be considered.
5.3.4.3 For FY 2014-15 and FY 2015-16, the Commission is of the view that for computing
revenue for existing retail tariff, CSS and wheeling charges, the revised tariffs, CSS
and wheeling charges of FY 2013-14 and FY 2014-15, has been considered, which
are approved later in this section.
5.3.4.4 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)
ARR Retail Business 4099 4125 3859 4074
ARR Wires Business 1152 1164 1240 1326
Total 5251 5289 5099 5400
ARR Revenue Gap of FY 2012-13 455.4
Less Income from existing Wheeling Charges 256.0 273.1 414.6 459.4
Less Income from existing CSS 98.7 113.6 891.7 950.4
ARR (net) 4897.0 5357.9 3793.0 3990.5
Revenue from Sale of Power at existing tariff 4441.6 5253.5 4831.0 4365.8
Revenue Gap/ (Surplus) 455.4 104.39 (1038.01) (375.30)
Average Cost of Supply (Rs/kWh) 7.91 8.13 5.59 5.68

5.3.4.5 The Commission further observes that for CSS, wheeling charges and retail tariff
are inter-related. Also, revenue from revised CSS and wheeling charges would have
to be factored in to ascertain revenue requirement from the retail tariff.
5.3.4.6 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.
Page 188 of 302

5.3.4.7 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 14.5%
similar to carrying cost allowed to RInfra-D for recovery of its Regulatory Asset.
5.3.4.8 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)
Total 5251 5289 5099 5400
Less Income from Revised Wheeling Charges 256.0 377.9 421.3 469.9
Less Income from Revised CSS 98.7 818.8 895.9 519.0
Regulatory asset recovery
ARR (net) requirement from Retail Tariff 4897.0 4547.9 3782.0 4411.4
Revenue Gap/ (Surplus) 455.4 (705.41) (1050.28) 45.57
Average Tariff Increase /( Decrease) -13% -22% 1.04%
Average Tariff Increase /( Decrease)
(equalised) (570.04) (570.04) (570.04)
Carrying cost (19.63) (69.64)
Normalised Tariff Increase /( Decrease) (589.67) (639.67) (570.04)
Normalised Tariff Increase (%) -11% -13% -13%

Adjusted Revenue Requirement from Retail
Tariff 4663.85 4191.32 3795.79
Adjusted Average Cost of Supply (Rs/kWh) 7.07 6.17 5.41

5.4 Tariff Philosophy
5.4.1.1 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 189 of 302

To reduce the cross-subsidy between the consumer categories and rationalising
tariffs in a manner reflecting cost to serve the consumer category.
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.
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.
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,
but are likely to come up in MYT period
A. Fixed and Demand Charges
5.4.1.2 RInfra-D submitted that the Tariff currently applicable for RInfra-D consumers was
is as per Order 121 of 2008 dated 15 June, 2009 and there has been no revision in
fixed charges since last the 4 years. 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. Further, RInfra-D submitted that majority of the costs of RInfra- D as
provided in the ARR are fixed in nature except for the variable portion of power
purchase cost.

5.4.1.3 Based on above principle, RInfra-D has proposed an increase in fixed charges and
demand charges, which are as under:
Table 144: Fixed Charges as submitted by RInfra-D (Rs/ Consumer/ Month)
Particulars Existing Proposed

LT
LT I - Below Poverty Line 3 5
0-100 30 40
Page 190 of 302

101-300 50 75
301-500 50 75
501 and above 100 150
0-100 100 150
101-300 100 150
301-500 100 150
501and above 100 150
LT II (a) - 0-20 kW 200 205

LT II (b) - >20-50 kW - -
LT II (c) - above 50 kW - -
LT III - LT Industrial upto 20 kW 200 205
LT IV - LT Industrial above 20 kW - -
LT-V : LT- Advertisements and Hoardings 200 205
LT VI: LT -Street Lights - -
LT-VII (A): LT -Temporary Supply Religious 200 205
LT-VII (B): LT -Temporary Supply Others 200 205
LT VIII: LT - Crematorium & Burial Grounds 200 205
LT IX: LT -Agriculture - -

HT
HT I: HT-Industry - -
HTII : HT- Commercial - -
HT III: HT-Group Housing Society - -
HTIV : HT - Temporary Supply 200 280
HT - Railway (New Category) - -

Table 145: Demand Charges as submitted by RInfra-D (Rs/ kVA/ Month)

LT
LT I - Below Poverty Line - -
0-100 - -
101-300 - -
301-500 - -
501 and above - -
Page 191 of 302

0-100 - -
101-300 - -
301-500 - -
501 and above - -
LT II (a) - 0-20 kW - -

LT II (b) - >20-50 kW 150 210
LT II (c) - above 50 kW 150 210
LT III - LT Industrial upto 20 kW - -
LT IV - LT Industrial above 20 kW 150 205
LT-V : LT- Advertisements and Hoardings - -
LT VI: LT -Street Lights 150 205
LT-VII (A): LT -Temporary Supply
Religious
- -
LT-VII (B): LT -Temporary Supply Others - -
LT VIII: LT - Crematorium & Burial
Grounds
- -
LT IX: LT -Agriculture 15 15

HT
HT I: HT-Industry 150 210
HTII : HT- Commercial 150 210
HT III: HT-Group Housing Society 150 210
HTIV : HT - Temporary Supply - -
HT - Railway (New Category) 150 210

B. Billing demand
5.4.1.4 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 192 of 302

b) 75% of the highest billing demand recorded during preceding eleven months
subject to limit of contract demand.
c) 50% of the Contract Demand
Commissions Ruling
5.4.1.5 The Commission has analysed RInfra-Ds submissions in this context. 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.
b) 40% of the Contract Demand.
5.4.1.6 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, and should not be subjected to very high demand charges because of
their inability to assess their Contract Demand accurately.

5.4.1.7 Hence, even if the consumers actual Maximum Demand is equal to 100% of the
Contract Demand, then such consumer is required to pay Demand Charges
equivalent to 65% of the Contract Demand.

Page 193 of 302

C. Energy Charges
5.4.1.8 RInfra-D proposed following reduction in cross subsidy levels for tariff design:


ACoS

7.84

7.84

7.46

7.67

LT
LT I - Below Poverty Line 13.20% 16.61% 17.25% 17.61%
0-100 46.89% 47.21% 49.52% 51.11%
101-300 91.42% 94.18% 99.22% 99.98%
301-500 143.25% 140.84% 131.09% 127.23%
501 and above 164.80% 162.36% 154.22% 149.66%
0-100 47.90% 49.00% 51.31% 52.76%
101-300 88.00% 89.49% 93.95% 94.50%
301-500 142.96% 140.67% 130.94% 127.10%
501 and above 162.46% 159.35% 151.18% 146.81%

LT II (a) - 0-20 kW 129.33% 127.61% 127.44% 127.27%
LT II (b) - 20-50 kW 164.61% 152.21% 137.78% 133.55%
LT II (c) - above 50 kW 173.65% 159.91% 143.23% 138.76%
LT III - LT Industrial upto 20 kW 120.53% 118.07% 112.06% 108.82%
LT IV - LT Industrial above 20 kW 118.91% 118.62% 113.01% 109.60%
Hoardings
276.83% 263.47% 262.85% 261.87%
LT VI: LT -Street Lights 131.88% 130.90% 130.52% 129.89%
Supply Religious
131.97% 102.51% 100.60% 100.38%
Supply Others
239.72% 236.95% 233.42% 231.49%
Burial Grounds
58.10% 59.19% 62.28% 62.84%
LT IX: LT -Agriculture 12.12% 12.36% 13.01% 13.16%

HT
HT I: HT-Industry 120.65% 105.60% 102.95% 100.78%
Page 194 of 302

HTII : HT- Commercial 134.81% 117.78% 111.81% 108.10%
HT III: HT-Group Housing Society 82.41% 85.63% 87.94% 90.55%
HTIV : HT - Temporary Supply 165.91% 162.60% 162.46% 161.00%
HT - Railway (New Category) 0.00% 71.63% 75.35% 75.95%

5.4.1.9 RInfra-D proposed following energy charges to be recovered from retail consumers:


Existing Proposed
Proposed Proposed
LT

0.47

0.47

0.47

0.55
0-100

3.50

3.50

3.50

3.74
101-300

6.57

6.57

6.57

6.83
301-500

10.83

10.51

9.25

9.25
501 and above

12.54

12.23

11.01

11.01

-

0-100

3.50

3.50

3.50

3.74
101-300

6.57

6.57

6.57

6.83
301-500

10.83

10.51

9.25

9.25
501and above

12.54

12.23

11.01

11.01
LT II (a) - 0-20 kW

9.40

9.30

8.81

9.09

LT II (b) - >20-50 kW

12.13

10.92

9.28

9.28

12.89

11.60

9.77

9.77
Page 195 of 302


Existing Proposed
Proposed Proposed
kW 9.17 8.99 8.09 8.09
kW

8.76

8.58

7.72

7.72
Hoardings

20.87

19.83

18.78

19.29

9.82

9.53

9.01

9.26
Supply Religious

4.50

5.49

5.00

5.25
Supply Others

18.69

18.49

17.31

17.67
Burial Grounds

4.50

4.59

4.59

4.77

0.95

0.97

0.97

1.01
Total LT
HT
HT I: HT-Industry

8.93

7.59

7.00

7.06

9.94

8.45

7.61

7.61
Society

6.10

6.25

6.10

6.50

13.00

12.75

12.11

12.35
HT - Railway (New Category) 5.00 5 5 5.25

D. Time of Day Tariffs
5.4.1.10 The Time of Day (ToD) tariffs are currently applicable compulsorily to HT I and
HT II categories, LT II (B) and (C) and LT IV category consumers having TOD
meters, as well as optionally available to LT II (A) and LT III category
consumers, who have TOD meters.
5.4.1.11 The TOD tariffs are available for five time slots, viz., (a) 2200 to 0600 hours, (b)
0600 to 0900 hours, (c) 0900 to 1200 hours, (d) 1200 to 1800 hours, and (e) 1800 to
2200 hours.
Page 196 of 302

5.4.1.12 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.
5.4.1.13 In its Tariff proposal, 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 2.50 per kWh.
E. Creation of new category for Railways

5.4.1.14 RInfra-D had submitted that there are a number of projects being envisaged for
Public Transportation, in furtherance of the existing suburban Rail transport system
such as Metro Rail, Mono Rail and some of which are under construction in RInfra-
D Distribution area and are being provided supply at Temporary Tariff as applicable
for construction. 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
Demand Charges
(Rs /kVA/month)
Energy Charges
(Rs per kWh)
HT Railways: Applicable to electricity
supply at 100 kV/33 kV/ 22 kV/11 kV/6.6
kV to Railways including Metro and
Monorail.

210 5.00

F. Clarification on Distribution Franchising
5.4.1.15 RInfra-D submitted that in Tariff Order dated June 15, 2009, in case 121 of 2008,
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. These downstream entities will pay
appropriate tariff as applicable as per RInfra Tariff Schedule i.e. LT II.( Emphasis
added).
Page 197 of 302

5.4.1.16 RInfra-D further submitted that from the above Order, 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, then the tariff
applicable for such consumers will be LT II.

5.4.1.17 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.

5.4.1.18 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. Also, the Commission cannot
determine BST for all the possible combinations of consumer mix.

5.4.1.19 Hence, it is clarified that in respect of Distribution Franchisees, the licensees are
free to prepare separate terms and conditions for each Franchisee Agreement, on a
case by case basis. It may be noted that in either case, 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, and also, the responsibility of ensuring
conformance with Standards of Performance, safety and all other relevant
Regulations rests with the respective Licensees.

Page 198 of 302

5.5 Commissions Tariff Philosophy
5.5.1 Tariff Design
5.5.1.1 In this Order, the Commission has decreased the tariffs in general in order to match
the approved revenue requirement, as detailed earlier in this, while at the same time,
reducing the cross-subsidy prevailing between consumer categories, over the levels
approved by the Commission in the previous Tariff Order. It may be noted that the
tariffs are being revised after more than four years, which has resulted in
accumulated regulatory asset, which have to be amortised along with associated
carrying cost over the MYT Control Period, as discussed in Section 4 of this Order.
5.5.1.2 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)

Total 5251 5289 5099 5400
Less Income from Revised Wheeling Charges 256.0 377.9 421.3 469.9
Less Income from Revised CSS 98.7 818.8 895.9 519.0
Regulatory asset recovery
ARR (net) requirement from Retail Tariff 4897.0 4547.9 3782.0 4411.4
Revenue Gap/ (Surplus) 455.4 (705.41) (1050.28) 45.57
Average Tariff Increase /( Decrease) -13% -22% 1.04%
Average Tariff Increase /( Decrease)
(equalised) (570.04) (570.04) (570.04)
Carrying cost (19.63) (69.64)
Normalised Tariff Increase /( Decrease) (589.67) (639.67) (570.04)
Normalised Tariff Increase (%) -11% -13% -13%

Adjusted Revenue Requirement from Retail
Tariff 4663.85 4191.32 3795.79

Page 199 of 302

5.5.1.3 As observed from the above Table, if each of the years is considered on a stand-
alone basis and tariffs revised in such a manner that the respective revenue
requirement of each year is met, the average normalised tariff decrease required
varies from a 11% to 13%. The Commission has normalised the tariff decrease to
avoid tariff shock in FY 2015-16 after substantial decrease in ARR for FY 2014-15.
Further, under a MYT regime, it would be better to have a smooth tariff trajectory.
Hence, the Commission has adjusted the revenue requirement of each year, by
deferring adjustment of surpluses in future periods, in such a manner that the
average tariff increase for all three years is similar. The Commission has also
allowed commensurate carrying cost, on the amount of revenue surplus deferred to
future periods.
5.5.1.4 With the above determined average tariff increase/decrease, the Commission has
determined the category-wise tariffs in line with the tariff philosophy adopted by it
in the past, and the provisions of law. 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.
5.5.1.5 The Commission observed that RInfra-D represented RAC as a separate line item as
not included it retail tariff comparison. However, 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, but for the
estimation of landed cost of the consumers, it should be included to enable
consumers to understand the billing impact of revised tariffs. 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)
Adjusted Revenue Requirement from Retail Tariff 4663.85 4191.32 3795.79
Regulatory Asset recovery through RAC from Retail
Consumers of RInfra-D 601.33 588.84 578.20
Total Revenue Requirement from Retail Tariff including
Regulatory Asset recovery
5,262.98 4,780.20 4,375.47
Page 200 of 302

Revenue from Existing Tariff including RAC 5,253.52 5,455.45 4,980.70
Revenue Gap/ (Surplus) 9.46 (675.24) (605.23)
Average Tariff Increase including RAC 0.18% -12% -12%

5.5.2 Ceiling Tariff
5.5.2.1 Shri Shirish Deshpande of MGP during the Public Hearing has suggested that the
Commission should determine the ceiling tariffs in RInfras area of supply
5.5.2.2 Section 62 (1) of EA, 2003 states:
The Appropriate Commission shall determine the tariff in accordance with the
provisions of this Act for
...
(d) retail sale of electricity.
Provided that in case of distribution of electricity in the same area by two or more
distribution licensees, the Appropriate Commission may, for promoting competition
among distribution licensees, fix only maximum ceiling of tariff for retail sale of
electricity...

5.5.2.3 The Commission noted that the sales and revenue mix of RInfra-D is as under:

Domestic
63%
LT Industrial
5%
HT Industrial
1%
Agriculture
0%
Commercial
(HT+LT)
28%
Others
3%
Sales (MU)
Domestic
LT Industrial
HT Industrial
Agriculture
Commercial
(HT+LT)
Others
FY 13- Actual
RInfra-D
Page 201 of 302

5.5.2.4 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. Also it also noted that
industrial sales is around 6% of sales mix of RInfra-D contributing to 8% of
revenue, whereas sales to commercial consumers is 28% of sales mix contributing
around 39% of revenue of RInfra-D.

5.5.2.5 The Commission noted that the sales and revenue mix of TPC-D is as under:

Domestic
48%
LT Industrial
6%
HT Industrial
2%
Agriculture
0%
Commercial (HT+LT)
39%
Others
5%
Revenue
(Rs Cr)
Domestic
LT Industrial
HT Industrial
Agriculture
Commercial (HT+LT)
Others
FY 13- Actual
RInfra-D
Domestic
16%
LT Industrial
10%
HT Industrial
20%
Railways
13%
Commercial (HT+LT)
40%
Others
1%
Sales (MU)
Domestic
LT Industrial
HT Industrial
Railways
Commercial (HT+LT)
Others
FY 13- Actual
TPC-D
Page 202 of 302

5.5.2.6 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. Also it also noted that
industrial sales including railways is around 43% of sales mix of TPC-D
contributing to 45 % of revenue, whereas sales to commercial consumers is 40 % of
sales mix contributing around 43% of revenue of RInfra-D.
5.5.2.7 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.
5.5.2.8 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, it will not be appropriate to consider implementation of ceiling tariff.
Hence, the Commission has not considered this suggestion for tariff design in this
Tariff Order.

Domestic
11%
LT Industrial
10%
HT Industrial
21%
Railways
14%
Commercial (HT+LT)
43%
Others
1%
Revenue
(Rs Cr)
Domestic
LT Industrial
HT Industrial
Railways
Commercial (HT+LT)
Others
FY 13- Actual
TPC-D
Page 203 of 302

5.5.3 Rationalisation of Tariff Categories/Consumption Slabs
5.5.3.1 In the previous Tariff Orders, the Commission has already rationalised the consumer
categories and consumption slabs across different Distribution Licensees in the State
of Maharashtra, to a large extent. In this MYT Order, the Commission has created a
new Tariff Category for Public Services in HT and LT segments, i.e., HT VI -
Public Services and LT X Public Services. The rationale for creation of these
categories, and the basis for determining the tariff for these newly created categories
are explained below.

5.5.3.2 In compliance with the Judgment of the Honble Appellate Tribunal, the
Commission, vide its Order dated 16 August, 2012 in Case No. 19 of 2012 on
MSEDCLs Petition seeking tariff determination for FY 2012-13, created the
categories of LT Public Services and HT Public Services, with the definition of HT
Public Services being modified vide the Supplemental Order dated 22 May, 2013.
The Commission has included Airports as well as other similar infrastructure
services under the Public Services category, in case of MSEDCL.
5.5.3.3 The Commission has adopted the same philosophy, while creating the categories of
LT Public Services and HT Public Services, and the applicability of this category is
defined below:

LT IX - Public Services
Applicability - This Tariff shall be applicable to educational institutions, hospitals,
dispensaries, primary health care centres, pathology laboratories, Spiritual
Organisations which are service oriented, Police Stations, Post Offices, Defence
establishments (army, navy and air force), Public libraries and Reading rooms,
Railway except traction (shops on the platforms/railway station/bus stands will be
billed under Commercial category as per the respective slab), State transport
establishments; Railway and State Transport Workshops, Fire Service Stations,
Jails, Prisons, Courts, Airports, 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.
Page 204 of 302

HT VI - Public Services
Applicability - This Tariff shall be applicable to educational institutions, hospitals,
dispensaries, primary health care centres, pathology laboratories, Spiritual
Organisations which are service oriented, Police Stations, Post Offices, Defence
establishments (army, navy and air force), Public libraries and Reading rooms,
Railway except traction (shops on the platforms/railway station/bus stands will be
billed under Commercial category as per the respective slab), State transport
establishments; Railway and State Transport Workshops, Fire Service Stations,
Jails, Prisons, Courts; Airports, 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
5.5.3.4 In its reply to data gaps, 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. Hence, 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.
5.5.3.5 The tariff for the Public Service category has been determined by giving due
weightage to the tariffs determined for industrial and commercial category, such that
the tariffs are in-between the tariffs applicable for industrial category and
commercial category.
5.5.3.6 As regards to proposed new category for Railways, the Commission has accepted
creation of new category as proposed by RInfra-D. The tariff for the HT V- HT
Railways category has been determined by giving due weightage to the tariffs
determined for industrial and commercial category, such that the tariffs are in-
between the tariffs applicable for industrial category and commercial category.
5.5.3.7 The applicability of tariffs for different consumer categories has been stipulated in
the approved Tariff Schedule, which is annexed as a part of this Order (Annexure
II).
Page 205 of 302

32. Ideally, 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. However, in the absence of segregated
network costs, 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. As power purchase cost is a major component
of the tariff, 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,
though not very accurate, but a simple and practical method to reflect the actual
cost of supply.

...
34. 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, both commercial and technical, for the relevant voltage level
and upstream system. As segregated network costs are not available, all the
other costs such as Return on Equity, Interest on Loan, depreciation, interest
on working capital and O&M costs can be pooled and apportioned equitably, on
pro-rata basis, to all the voltage levels including the appellants category to
determine the 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. All consumer categories connected to the same voltage
will have the same cost of supply. Further, refinements in formulation for cost
of supply can be done gradually when more data is available.
...
37. We, however, 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. 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.(emphasis added)
Page 206 of 302

5.5.3.8 As can be seen from the above extract of the Honble Appellate Tribunals
Judgment, the Honble Tribunal has ruled that the voltage-wise cost of supply
should be used to determine the category-wise cross-subsidy, and in the absence of
requisite data, the Honble Tribunal has further advised that the power purchase
costs, which are the major component of the Distribution Licensees costs, can be
apportioned to different voltage levels in proportion to the distribution losses at the
respective voltage levels.

5.5.3.9 The Commission observed that in case of RInfra-D, 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. 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. Moreover, RInfra-D
has not submitted the details of Voltage-wise Cost of Supply in the MYT Petition
that was published for public comments.

5.5.3.10 Also, 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.

5.5.3.11 In view of all the above reasons, 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, and hence, for the purpose of this Order, the Commission has
continued to compute the cross-subsidy with respect to the Average Cost of Supply.
However, 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, as laid down in the Tariff Policy as well as several Judgments of the
Honble Tribunal.

Page 207 of 302

5.5.3.12 With regards to proposal of RInfra-D to increase ToD rebate during night hours.
The Commission observed that RInfra-D was not able to substantiate and establish
that the proposed rebate will lead to demand side management. Hence, the
Commission has rejected the proposal of increase of ToD rebate.

5.5.3.13 The Time of Day (ToD) tariffs will be applicable compulsorily to HT I, HT II, and
HT VI categories, and LT II (B) and (C), LT IV category consumers having TOD
meters, and LT X categories, as well as optionally available to LT- II (A) and LT III
category consumers, who have TOD meters.

5.5.4 Fuel Adjustment Charges
5.5.4.1 The existing Fuel Adjustment Cost (FAC) Charge has been equated to zero, on
account of the adoption of the existing fuel costs and power purchase costs for
projection of the power purchase expenses. In case of any variation in the fuel prices
and power purchase prices with respect to these levels, RInfra-D shall pass on
adjustments, 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, as
specified in Regulations 13.4 to 13.9 of the MERC MYT Regulations, 2011.
5.5.4.2 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, vis-a-vis the fuel costs considered in the
prevailing Tariff Order and the Regulations considered for that Order (MERC Tariff
Regulations, 2005). However, the ARR for the Control Period from FY 2012-13 to
FY 2015-16 has been determined in accordance with MERC MYT Regulations, and
hence, 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. Any difference,
positive or negative, due to the change in applicability of Regulations considered for
charging FAC and that considered for vetting, vis-a-vis the FAC already charged by
RInfra-D for these periods, shall be passed through in the second half of FY 2014-
15 and spread over the six months of H2 of FY 2014-15, after approval by the
Commission.
Page 208 of 302

5.5.4.3 RInfra-D shall submit the details in the stipulated format to the Commission for the
first half of FY 2013-14, for prior approval of Z-factor charge to be recovered in the
second Control Period, as stipulated by the Commission, within sixty (60) days of
completion of first half.
5.5.4.4 Thereafter, RInfra-D shall submit details in the stipulated format to the Commission
for the subsequent half yearly periods of the second Control Period, for prior
approval of Z-factor charge to be recovered in the ensuing half yearly periods of the
second Control Period, within 60 days of completion of such half. Further, 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, along with the detailed
computations and supporting documents as may be required for verification by the
Commission.

Page 209 of 302

5.5.5 Cross-Subsidy Reduction Trajectory
5.5.5.1 The Comparison of category-wise Average Billing Rate including RAC and cross-
subsidy reduction trajectory approved by the Commission for FY 2013-14 is given
in the Tables below:

Consumer Category
Consumption Slabs
Existing
Tariff
Revised
Tariff
ABR
(Rs/kWh)
%
Increase
ABR
(Rs/kWh)
%
Increase
LT I - Below Poverty Line 0.97 2.39 147% 2.35 142% 12% 29%
LT -I Residential (Single Phase) -
0-100 3.65 4.79 31% 4.14 13% 46% 52%
101-300 7.12 8.48 19% 7.68 8% 89% 96%
301-500 11.19 12.14 8% 9.66 -14% 140% 121%
501 and above 12.88 13.83 7% 12.31 -4% 161% 154%
LT -I Residential Three phase -
0-100 3.73 4.93 32% 4.16 12% 47% 52%
101-300 6.87 8.11 18% 7.14 4% 86% 89%
301-500 11.18 12.13 8% 9.47 -15% 140% 119%
501 and above 12.72 13.59 7% 12.15 -4% 159% 152%
LT II (a) - 0-20 kW 10.09 11.10 10% 9.44 -6% 126% 118%
LT II (b) - >20-50 kW 12.86 13.03 1% 12.37 -4% 161% 155%
LT II (c) - above 50 kW 13.57 13.64 1% 12.81 -6% 170% 161%
LT III - LT Industrial upto 20 kW 9.44 10.35 10% 9.45 0% 118% 118%
LT IV - LT Industrial above 20 kW 9.29 10.40 12% 9.54 3% 116% 120%
LT-V : LT- Advertisements and Hoardings 21.69 21.76 0% 21.01 -3% 272% 263%
LT VI: LT -Street Lights 10.36 11.36 10% 10.41 0% 130% 130%
LT-VII (A): LT -Temporary Supply Religious 6.99 9.13 31% 9.33 33% 88% 117%
LT-VII (B): LT -Temporary Supply Others 18.79 19.68 5% 19.47 4% 235% 244%
LT VIII: LT - Crematorium & Burial Grounds 4.55 5.73 26% 5.28 16% 57% 66%
LT IX: LT -Agriculture 0.95 2.06 117% 2.10 122% 12% 26%
Total LT 7.84 8.90 14% 7.83 -0.10% 98% 98%
HT
HT I: HT-Industry 9.43 9.37 -1% 9.54 1% 118% 120%
HTII : HT- Commercial 10.50 10.33 -2% 11.07 5% 132% 139%
HT III: HT-Group Housing Society 6.43 7.81 21% 7.28 13% 81% 91%
HTIV : HT - Temporary Supply 13.00 13.85 6% 14.54 12% 163% 182%
HT - Railway (New Category) 10.38 6.71 -35% 10.28 -1% 130% 129%
Total HT 10.04 9.46 -6% 10.43 4% 126% 131%
Total 7.97 8.93 12% 7.98 0.14% 100% 100%
7.98
7.98
ABR/ ACoS (%)
Average
Cost of
Supply
(Rs/kWh)
Average
Billing Rate
at Existing
Tariff
(including
FAC)
Tariff Proposed by
RInfra-D (including
RAC)
Average Billing Rate (Rs/kWh)
Revised Tariff
(including RAC)
Page 210 of 302

5.5.5.2 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
Consumption Slabs
Existing
Tariff
Revised
Tariff
ABR
(Rs/kWh)
%
Increase
ABR
(Rs/kWh)
% Increase
LT I - Below Poverty Line 2.33 2.35 1% 2.48 6% 33% 35%
0-100 4.13 4.75 15% 4.06 -2% 59% 58%
101-300 7.67 8.46 10% 6.40 -17% 109% 91%
301-500 9.65 10.84 12% 6.99 -28% 137% 99%
501 and above 12.30 12.56 2% 9.10 -26% 175% 129%
LT -I Residential Three phase -
0-100 4.15 4.89 18% 4.08 -2% 59% 58%
101-300 7.13 8.07 13% 5.85 -18% 101% 83%
301-500 9.46 10.82 14% 6.81 -28% 134% 97%
501 and above 12.14 12.33 2% 8.95 -26% 173% 127%
LT II (a) - 0-20 kW 9.42 10.56 12% 8.58 -9% 134% 122%
LT II (b) - >20-50 kW 12.35 11.33 -8% 10.76 -13% 175% 153%
LT II (c) - above 50 kW 12.78 11.74 -8% 11.25 -12% 182% 160%
LT III - LT Industrial upto 20 kW 9.44 9.42 0% 8.11 -14% 134% 115%
LT IV - LT Industrial above 20 kW 9.52 9.49 0% 8.19 -14% 135% 116%
LT-V : LT- Advertisements and Hoardings 20.98 20.66 -2% 18.91 -10% 298% 269%
LT VI: LT -Street Lights 10.39 10.79 4% 8.78 -16% 148% 125%
LT-VII (A): LT -Temporary Supply Religious 9.28 8.56 -8% 8.79 -5% 132% 125%
LT-VII (B): LT -Temporary Supply Others 19.47 18.47 -5% 18.56 -5% 277% 264%
LT IX: LT -Agriculture 1.99 2.03 2% 2.13 7% 28% 30%
Total LT 7.86 8.49 8% 6.88 -12.49% 112% 98%
HT -
HT I: HT-Industry 9.76 8.74 -11% 8.15 -17% 139% 116%
HTII : HT- Commercial 11.01 9.40 -15% 9.93 -10% 156% 141%
HT III: HT-Group Housing Society 7.28 7.62 5% 7.24 0% 103% 103%
HTIV : HT - Temporary Supply 14.54 13.18 -9% 12.70 -13% 207% 180%
Total HT 10.52 8.86 -16% 9.35 -11% 149% 133%
Total 8.03 8.52 6% 7.04 -12% 114% 100%
7.04
7.04
Average
Cost of
Supply
(Rs/kWh)
Average
Billing Rate
at Existing
Tariff
(including
FAC)
Average Billing Rate (Rs/kWh) ABR/ ACoS (%)
Tariff Proposed by
RInfra-D (including
RAC)
Revised Tariff
(including RAC)
Page 211 of 302

5.5.5.3 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:

5.5.5.4 The above Tables show that the Commission has reduced the cross-subsidy levels
for most consumer categories.
Consumer Category
Consumption Slabs
Existing
Tariff
Revised
Tariff
ABR
(Rs/kWh)
%
Increase
ABR
(Rs/kWh)
%
Increase
LT I - Below Poverty Line 2.48 2.37 -4% 2.48 0% 40% 40%
0-100 4.06 4.94 22% 4.04 0% 65% 65%
101-300 6.40 8.69 36% 6.03 -6% 103% 97%
301-500 6.99 10.78 54% 6.65 -5% 112% 107%
501 and above 9.10 12.51 37% 7.70 -15% 146% 124%
LT -I Residential Three phase 0.00 1.02 -
0-100 4.08 5.07 24% 4.06 0% 66% 65%
101-300 5.85 8.27 41% 5.48 -6% 94% 88%
301-500 6.81 10.77 58% 6.47 -5% 109% 104%
501 and above 8.95 12.29 37% 7.56 -16% 144% 121%
LT II (a) - 0-20 kW 8.58 10.79 26% 6.67 -22% 138% 107%
LT II (b) - >20-50 kW 10.76 11.27 5% 7.94 -26% 173% 127%
LT II (c) - above 50 kW 11.25 11.67 4% 9.31 -17% 181% 149%
LT III - LT Industrial upto 20 kW 8.11 9.37 15% 7.04 -13% 130% 113%
LT IV - LT Industrial above 20 kW 8.19 9.43 15% 7.10 -13% 131% 114%
LT-V : LT- Advertisements and Hoardings 18.91 21.12 12% 16.77 -11% 303% 269%
LT VI: LT -Street Lights 8.78 10.99 25% 7.12 -19% 141% 114%
LT-VII (A): LT -Temporary Supply Religious 8.79 8.72 -1% 8.24 -6% 141% 132%
LT-VII (B): LT -Temporary Supply Others 18.56 18.79 1% 16.46 -11% 298% 264%
LT IX: LT -Agriculture 2.13 2.03 -5% 2.34 9% 34% 38%
Total LT 6.88 8.68 26% 6.05 -12.01% 110% 97%
HT -
HT I: HT-Industry 8.15 8.75 7% 7.89 -3% 131% 127%
HTII : HT- Commercial 9.93 9.32 -6% 8.78 -12% 159% 141%
HT III: HT-Group Housing Society 7.24 7.97 10% 7.21 -1% 116% 116%
HTIV : HT - Temporary Supply 12.70 13.38 5% 10.52 -17% 204% 169%
Total HT 9.35 8.84 -5% 8.40 -10% 150% 135%
ABR 7.04 8.69 24% 6.23 -11% 113% 100%
ABR/ ACoS (%)
Tariff Proposed by
RInfra-D (including
RAC)
Revised Tariff
(including RAC)
6.23
6.23
Average
Cost of
Supply
(Rs/kWh)
Average
Billing Rate
at Existing
Tariff
(including
FAC)
Average Billing Rate (Rs/kWh)
Page 212 of 302

5.5.5.5 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, it
is possible that the actual revenue earned by RInfra-D may be higher or lower than
that considered by the Commission, on account of the changes in consumption
pattern. The revenue shortfall/surplus if any will be trued up based on actuals.
5.5.5.6 It should be noted that all previous clarifications given by the Commission through
its various Orders continue to be applicable, unless they are specifically contrary to
anything that has been stated in this Order, wherein the clarifications given in this
Order shall prevail.
5.5.5.7 The Case No. 85 of 2013, which is a review of the actions taken by TPC-D on Order
of the Commission in Case No. 151 of 2011, is under hearing with the Commission.
The Commission is of the view that the Judgement/Ruling arrived at in Case No. 85
of 2013 will impact the sales and revenue of both RInfra-D and TPC-D, both of
whom have a Universal Service Obligation in the same area of Supply. The effect of
above mentioned impact on this MYT Order of RInfra-D and the MYT Order of
TPC-D issued on 28 June, 2013 in Case No. 179 of 2011 will be considered by the
Commission and the appropriate consequent Orders will be issued.

5.6 REVISED TARIFFS WITH EFFECT FROM 1 September, 2013 (for FY 2013-14)
Sl. Consumer category &
Consumption Slab
Tariffs
Fixed/ Demand
Charge
Wheeling
Charges
(Rs/kWh)
Energy
Charge
(Rs/kWh)
Regulatory
Asset
Charge
(Rs/kWh)
LOW TENSION CATEGORIES
1 LT I - Residential (BPL) Rs. 5 per month 1.22 0.11 0.19
LT I Residential
0-100 units Rs. 40 per
month
$$

1.22 2.23 0.48
101-300 units Rs. 75 per 1.22 4.78 0.84
Page 213 of 302

Consumption Slab
Tariffs
Fixed/ Demand
Charge
Wheeling
Charges
(Rs/kWh)
Energy
Charge
(Rs/kWh)
Regulatory
Asset
Charge
(Rs/kWh)
301 to 500 units month
$$
1.22 6.78 1.12
Above 500 units (balance units) Rs. 100 per
month
$$

1.22 9.28 1.47
2 LT II - LT Commercial
(A) 0-20 kW Rs. 250 per
month
1.22 6.30 1.05
(B) > 20 kW and < 50 kW Rs. 200 per kVA
per month
1.22 8.78 1.40
(C) > 50 kW 1.22 9.23 1.46
3 LT III - LT Industrial below 20 kW
load
Rs. 250 per
month
1.22 6.78 1.12
4 LT IV - LT Industrial above 20 kW Rs. 200 per kVA
per month
1.22 6.53 1.08
5 LT V - Advertisement & Hoardings,
incl. floodlights & neon signs
Rs. 400 per
month
1.22 15.78 2.38
6 LT VI Streetlights Rs 200 per kVA
per month#
1.22 7.28 1.19
7 LT VII Temporary Supply
(A) TSR Temporary Supply Religious Rs 200 per month 1.22 4.78 0.84
(B) TSO Temporary Supply Others Rs 200 per month 1.22 15.78 2.38
8 LT VIII Crematoriums and Burial
Grounds
Rs 200 per month 1.22 3.37 0.64
9 LT IX Agriculture Rs 20 per HP per
month
1.22 0.64 0.24
10 LT X- Public Services Rs. 250 per
month
1.22 6.59 1.09
Page 214 of 302

Consumption Slab
Tariffs
Fixed/ Demand
Charge
Wheeling
Charges
(Rs/kWh)
Energy
Charge
(Rs/kWh)
Regulatory
Asset
Charge
(Rs/kWh)
TOD Tariffs (in addition to above base
tariffs) compulsory for LT I I (B) and
(C), LT I V, and LT X category, and
optional for LT I I (A) and LT I I I
category

0600 hours to 0900 hours 0.00
2200 hours to 0600 hours -0.75

HIGH TENSION CATEGORIES
10 HT I Industry Rs 200 per kVA
per month
0.63 7.37 1.12
11 HT II Commercial Rs 200 per kVA
per month
0.63 8.42 1.27
12 HT III Group Housing Society Rs 200 per kVA
per month
0.63 5.37 0.84
13 HT IV Temporary Supply Rs 200 per
connection per
month
0.63 12.12 1.78
14 HT V Railways Rs 200 per kVA
per month
0.63 7.87 1.19
15 HT VI Public Services Rs 200 per kVA
per month
0.63 7.87 1.19
tariffs) for HT I , HT I I and HT VI

Page 215 of 302

Consumption Slab
Tariffs
Fixed/ Demand
Charge
Wheeling
Charges
(Rs/kWh)
Energy
Charge
(Rs/kWh)
Regulatory
Asset
Charge
(Rs/kWh)
categories

Notes:
1. Fuel Adjustment Cost (FAC) will be applicable to all consumers and will be charged over the above tariffs, on
the basis of the FAC formula prescribed by the Commission.
2. $$: Fixed charge of Rs. 100 per month will be levied on residential consumers availing 3 phase supply.
Additional Fixed Charge of Rs. 100 per 10 kW load or part thereof above 10 kW load shall be payable.
3. #: Street lightings having 'automatic timers' for switching 'on/off' would be levied Demand Charges on the
lower of the following:
(A. 50% of the Contract Demand
(B. Actual Recorded Demand

Page 216 of 302

5.7 REVISED TARIFFS WITH EFFECT FROM 1 APRIL, 2014 (for FY 2014-15)
Sl.
Consumer category &
Consumption Slab
Tariffs
Fixed/ Demand
Charge
Wheeling
Charges
(Rs/kWh)
Energy
Charge
(Rs/kWh)
Regulatory
Asset
Charge
(Rs/kWh)
LT I Residential
0-100 units
Rs. 40 per
month
$$

1.24 2.11 0.57
101-300 units
Rs. 75 per
month
$$
1.24 3.58 0.74
301 to 500 units 1.24 4.36 0.86
Above 500 units (balance units)
Rs. 100 per
month
$$

1.24 6.36 1.17
(A) 0-20 kW
Rs. 250 per
month
1.24 5.47 1.03
(B) > 20 kW and < 50 kW
Rs. 200 per kVA
per month
1.24 7.26 1.31
(C) > 50 kW 1.24 7.76 1.39
3
LT III - LT Industrial below 20 kW
load
Rs. 250 per
month
1.24 5.51 1.04
4 LT IV - LT Industrial above 20 kW
Rs. 200 per kVA
per month
1.24 5.26 1.00
5
LT V - Advertisement & Hoardings,
Rs. 400 per
month
1.24 13.76 2.31
6 LT VI Streetlights
Rs 200 per kVA
per month#
1.24 5.76 1.08
Page 217 of 302

Sl.
Consumer category &
Consumption Slab
Tariffs
Fixed/ Demand
Charge
Wheeling
Charges
(Rs/kWh)
Energy
Charge
(Rs/kWh)
Regulatory
Asset
Charge
(Rs/kWh)
8
LT VIII Crematoriums and Burial
Grounds
Rs 200 per month
1.24 3.76 0.77
9 LT IX Agriculture
Rs 20 per HP per
month
1.24 0.61 0.28
10 LT X- Public Services Rs. 250 per
month
1.24 5.49 1.04

category


11 HT I Industry
Rs 200 per kVA
per month
0.64 5.86 1.00
12 HT II Commercial
Rs 200 per kVA
per month
0.64 7.36 1.23
13 HT III Group Housing Society
Rs 200 per kVA
per month
0.64 5.26 0.91
14 HT IV Temporary Supply
Rs 200 per
connection per
0.64 10.36 1.69
Page 218 of 302

Sl.
Consumer category &
Consumption Slab
Tariffs
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
0.64 6.61 1.12
16 HT VI- Public Services
Rs 200 per kVA
per month
0.64 6.61 1.12

categories


Notes:

Page 219 of 302

5.8 REVISED TARIFFS WITH EFFECT FROM 1 APRIL, 2015 (for FY 2015-16)
Sl.
Consumer category &
Consumption Slab
Tariffs
Fixed/ Demand
Charge
Wheeling
Charges
(Rs/kWh)
Energy
Charge
(Rs/kWh)
Regulatory
Asset
Charge
(Rs/kWh)
LT I Residential
0-100 units
Rs. 40 per
month
$$

1.27 2.03 0.56
101-300 units
Rs. 75 per
month
$$
1.27 3.18 0.75
301 to 500 units 1.27 3.98 0.89
Above 500 units (balance units)
Rs. 100 per
month
$$

1.27 5.23 1.07
(A) 0-20 kW
Rs. 250 per
month
1.27 3.73 0.84
(B) > 20 kW and < 50 kW
Rs. 200 per kVA
per month
1.27 4.73 1.01
(C) > 50 kW 1.27 5.98 1.22
3
LT III - LT Industrial below 20 kW
load
Rs. 250 per
month
1.27 4.48 0.97
4 LT IV - LT Industrial above 20 kW
Rs. 200 per kVA
per month
1.27 4.23 0.93
5
LT V - Advertisement & Hoardings,
Rs. 400 per
month
1.27 11.73 2.19
6 LT VI Streetlights
Rs 200 per kVA
per month#
1.27 4.23 0.93
Page 220 of 302

Sl.
Consumer category &
Consumption Slab
Tariffs
Fixed/ Demand
Charge
Wheeling
Charges
(Rs/kWh)
Energy
Charge
(Rs/kWh)
Regulatory
Asset
Charge
(Rs/kWh)
8
LT VIII Crematoriums and Burial
Grounds
Rs 200 per month
1.27 3.83 0.86
9 LT IX Agriculture
Rs 20 per HP per
month
1.27 0.73 0.34
10
LT X- Public Services Rs. 250 per
month
1.27 4.18 0.92

category


11 HT I Industry
Rs 200 per kVA
per month
0.65 5.55 1.04
12 HT II Commercial
Rs 200 per kVA
per month
0.65 6.30 1.17
13 HT III Group Housing Society
Rs 200 per kVA
per month
0.65 5.15 0.98
14 HT IV Temporary Supply
Rs 200 per
connection per
0.65 8.35 1.52
Page 221 of 302

Sl.
Consumer category &
Consumption Slab
Tariffs
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
0.65 5.35 1.01
16 HT VI- Public Services
Rs 200 per kVA
per month
0.65 5.35 1.01

categories


Notes:

Page 222 of 302

5.8.1.1 The category-wise revenue with revised tariffs excluding and including Regulatory
Asset Charge for FY 2013-14, FY 2014-15, and FY 2015-16 is given in Annexure I
to this Order.
5.8.1.2 The approved Tariff Schedule has been given as Annexure II (A), II (B) and II (C)
to this Order.
5.9 INCENTIVES AND DISINCENTIVES
5.9.1 Power Factor Incentive (Applicable for all HT categories, and LT II (B), LT II
(C), and LT IV categories)
5.9.1.1 Whenever the average power factor is more than 0.95, an incentive shall be given at
the rate of the following percentages of the amount of the monthly bill including
energy charges, reliability charges, FAC, and Fixed/Demand Charges, but excluding
Taxes and Duties:

Sl. Range of Power Factor Power Factor Level Incentive
1 0.951 to 0.954 0.95 0%
2 0.955 to 0.964 0.96 1%
3 0.965 to 0.974 0.97 2%
4 0.975 to 0.984 0.98 3%
5 0.985 to 0.994 0.99 5%
6 0.995 to 1.000 1.00 7%
Note: PF to be measured/computed upto 3 decimals, after universal rounding off

5.9.2 Power Factor Penalty (Applicable for all HT categories, and LT II (B), LT II
(C), and LT IV categories)
5.9.2.1 Whenever the average PF is less than 0.9, penal charges shall be levied at the rate of
the following percentages of the amount of the monthly bill including energy
charges, reliability charges, FAC, and Fixed/Demand Charges, but excluding Taxes
and Duties:

Page 223 of 302

Sl. Range of Power Factor Power Factor Level Penalty
1 0.895 to 0.900 0.90 0%
2 0.885 to 0.894 0.89 2%
3 0.875 to 0.884 0.88 3%
4 0.865 to 0.874 0.87 4%
5 0.855 to 0.864 0.86 5%
6 0.845 to 0.854 0.85 6%
7 0.835 to 0.844 0.84 7%
8 0.825 to 0.834 0.83 8%
9 0.815 to 0.824 0.82 9%
10 0.805 to 0.814 0.81 10%
... ... ... ...
5.9.3 Prompt Payment Discount
5.9.3.1 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.

Page 224 of 302

5.9.4 Delayed Payment Charges (DPC)
5.9.4.1 In case the electricity bills are not paid within the due date mentioned on the bill,
delayed payment charges of 2 percent on the total electricity bill (including Taxes
and Duties) shall be levied on the bill amount. For the purpose of computation of
time limit for payment of bills, the day of presentation of bill or the date of the
bill or "the date of issue of the bill", etc. as the case may be, will not be excluded.
5.9.5 Rate of Interest on Arrears
5.9.5.1 The rate of interest chargeable on arrears will be as given below for payment of
arrears-

5.9.6 Load Factor Incentive
5.9.6.1 Consumers having load factor over 75% upto 85% will be entitled to a rebate of
0.75% 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%. The total rebate under this head will be subject to a ceiling of 15% of the
energy charges for that consumer. This incentive is limited to HT I, HT II, and HT
VI categories only. Further, the load factor rebate will be available only if the
consumer has no arrears with RInfra-D, and payment is made within seven days
from the date of the bill. However, 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.

The Load Factor has been defined below:
Load Factor = Consumption during the month in MU
Maximum Consumption Possible during the month in MU

Sr.
No.
Delay in Payment (months)
Interest Rate
p.a.
(%)
1 Payment after due date upto 3 months (0 - 3) 12%
2 Payment made after 3 months and before 6 months (3 - 6) 15%
3 Payment made after 6 months (> 6) 18%
Page 225 of 302

Maximum consumption possible = Contract Demand (kVA) x Actual Power
Factor x (Total no. of hrs during the month less planned load shedding hours*)
* - Interruption/non-supply to the extent of 60 hours in a 30 day month has been
built in the scheme.

5.9.6.2 In case the billing demand exceeds the contract demand in any particular month,
then the load factor incentive will not be payable in that month. (The billing demand
definition excludes the demand recorded during the non-peak hours, i.e., 22:00 hrs
to 06:00 hrs and therefore, even if the maximum demand exceeds the contract
demand in that duration, load factor incentives would be applicable. However, the
consumer would be subjected to the penal charges for exceeding the contract
demand and has to pay the applicable penal charges).
5.10 APPLICABILITY OF THE ORDER
5.10.1.1 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,
2013 and shall continue to be in force for the entire Control Period till 31 March,
2016. The Commission will undertake the mid-term review of RInfra-Ds
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, with detailed reasons for deviation in performance, latest by 30 November,
2014.
5.10.1.2 With the above, RInfra-Ds Petition in Case No.9 of 2013 stands disposed off.

Sd/- Sd/-
(Vijay L. Sonavane) (V. P. Raja)
Member Chairman

Page 226 of 302

Appendix -1
List of attendees for the Technical Validation Session dated February 8, 2013

Sr.
No.
Name of the Attendee Institution/Individual
1
Shri Raksh Pal Abrol, Bharatiya
Udhami Avam Upbhokta Sangh
Consumer Representative u/s. 94(3) of the EA,
2003 for this Case
2 Shri Ashok Pendse, TBIA
Consumer Representative u/s. 94(3) of the EA,
2003 for this Case
3 Shri D.Mishra Deloitte
4 Shri R.R.Mehta Reliance Infrastructure Ltd
5 Shri Kapil Sharma Reliance Infrastructure Ltd
6 Shri Vivek Mishra Reliance Infrastructure Ltd
7 Shri Kishor Patil Reliance Infrastructure Ltd
8 Shri Ganesh Balasubramaniam Reliance Infrastructure Ltd
9 Shri A.Saha Reliance Infrastructure Ltd
10 Shri Mohan Limaye Reliance Infrastructure Ltd
11 Smt. Vijaya Bhatawdekar Reliance Infrastructure Ltd
12 Smt. Shraddha Kaley Reliance Infrastructure Ltd
13 Smt Varsha Nijasure Reliance Infrastructure Ltd
14 Shri Anvesh Jain Reliance Infrastructure Ltd
15 Shri K.K.Chopra Individual

Page 227 of 302

Appendix -2
List of attendees for the Public Hearing dated April 06, 2013

Sr.
No.
Consumer Representative u/s. 94(3) of the EA, 2003 for this Case
1 Shri N. Ponrathnam Vel Induction Hardenings
2 Shri Raksh Pal Abrol Bharatiya Udhami Avam Upbhokta Sangh
3 Shri Shirish Deshpande Mumbai Grahak Panchayat
4 Shri Sandeep Ohri Consumer Representative
Other Representatives
5
Shri Arun Kadam on behalf of Thakur
Ramesh Singh Individual
6 Shri Bhalchandra Mhatre Individual
7 Adv.Arun Jagtap Individual
8 Shri Atul Bhatkalkar Individual
9 Shri Gautam S. Jadhav Individual
10 Dr. Shataram Karande Individual
11 Smt. Mangala Kadam Individual
12 Smt. Ankita Salvi Individual
13 Shri. Mohmmad Qureshi Individual
14 Smt. Sneha Individual
15 Shri Jitu Pawar Individual
16 Shri Ulhas Chaudhari Individual
17 Shri Soumen Mukherjee Individual
18 Shri Mohmmad Sikandar Azam Individual
19 Smt Virginia Dias Individual
20 Shri Vishal C Rajani Individual
21 Smt. Manali Jadhav Individual
22 Representative Shree Swami Samarth Seva Mandal
23 Shri Santram Yadav Individual
24 Shri Sachin Gharat Individual
25 Smt. Nilam Dhavan Individual
26 Shri Chandrakant Mudras Individual
27 Shri Vishnu N. Mhatre Individual
28 Shri Bhaskar Bhoir Individual
29 Shri Sagar Vartak Individual
30 Shri Waris M. Khan Individual
31 Shri Rajesh Parab Individual
Page 228 of 302

Sr.
No.
32 Representative AWEIS Electronics & Electricals
33 Shri Baban B. Kamble Individual
34 Shri Pradeep Bhogal Individual
35 Shri Subhash Desai Individual
36 Shri Dilip R. Murudkar Individual
37 Shri Arjunrao Kadam Individual
38 Shri Rajendra Pawar Individual
39 Shri Harishchandra Govalkar Individual
40 Shri Ganesh Khankar Individual
41 Shri George John Individual
42 Shri Shailesh Jayaswal Individual
43 Shri Vilas Karjawakar Individual
44 Shri Pravin Khedekar Individual
45 Smt. Samiksha Mali Individual
46 Shri Chandrakant Lad Individual
47 Smt.Sneha Shirke Individual
48 Shri Sandeep Yelmane Individual
49 Shri Ramesh Dubey Individual
50 Shri Anand Upadhyay Individual
51 Smt. Smita Matondkar Individual
52 Shri Singh Individual
53 Representative Chanakya Electric Works
54 Representative Kalika Electrical Enterprises
55 Shri Baban Chaskar Individual
56 Representative Himalaya Electric Works
57 Representative Mumbai Metro One Pvt. Ltd.
58 Shri Shaikh M. Hussain Individual
59 Representative Retailers Association Of India (Haria & Co)
60 Representative Shopping Association Of India
61 Adv. Mohit Jadhav Individual
62 Representative Indus Towers Ltd.
63 Representative Arch-V-Shan Creations
64 Representative Prana Studios Pvt. Ltd.
65 Shri N.A. Shaikh BMC
66 Shri A. R. Patane BMC
67 Shri Atul Kapadia Individual
Page 229 of 302

Sr.
No.
68 Shri Rupesh Sankhe Individual
69 Shri Vinod Nibehe Individual
70 Shri Mahesh Joshi Individual
71 Shri Sachin Lade Individual
72 Smt.Chhavi Chauhan Individual
73 Shri Nishant Bhargvara Individual
74 Smt.Nutan Kolhatkar Individual
75 Shri. Sreeram Pethe Individual
76 Shri Sanjiv Shah Individual
77 Shri Jinag Shah Individual
78 Shri N. Thapar Individual
79 Shri S. Porkodi Individual
80 Shri Gaurav Gautam Individual
81 Shri R. Shrivastav Individual
82 Shri Ram Verma Individual
83 Shri Pankaj Bhargava Individual
84 Shri Rajiv Nauhare Individual
85 Smt. Pratima Bhargava Individual
86 Smt.Shital Khiraiya Tata Power Company Ltd.
87 Shri Jana Shewale Individual
88 Shri. Dipak S. Sakharkar Individual
89 Shri Suniel Shukla Individual
90 Smt.Swati Mehendale Tata Power Company Ltd.
91 Shri Suniel Shukla Individual
92 Shri Niranjan C.V. Individual
93 Smt. Aditi Sachdev Individual
94 Shri Rohit Jaiswal Individual
95 Shri P.P. Karhade Individual
96 Shri R. P. Kulkarni Individual
97 Shri H. C. Gokarni Individual
98 Shri M. D. Salvi Individual
99 Smt H. I. Inamdar Tata Power Co Ltd
100 Shri Sandeep Jain Individual
101 Shri Suhas N. Joshi Individual
102 Shri M. P. Kulkarni Individual
103 Smt. Chhaya Bhonslay Individual
Page 230 of 302

Sr.
No.
104 Shri Runit N. Maru Individual
105 Shri Amberish Gaekwad Individual
106 Shri A. R. Waghmare Individual
107 Shri Satish Kasbe Individual
108 Shri Totaram B. Pawar Individual
109 Shri Parthav Sampat Individual
110 Shri Dattaram Ghuge Individual
111 Shri Basil Pereira Individual
112 Smt. Chandrama Rai LVPIN Ltd.
113 Shri M. K. Gupta Individual
114 Smt. Namrata Samant Individual
115 Shri K.K. Chopra Individual
116 Shri Aditya Individual
117 Smt Aditi Garg PWC
118 Shri Ganesh D. Individual
119 Shri Sachin Patil Individual
120 Shri Dattaram Ghuge Individual
121 Shri Bakulesh Motivala Individual
122 Shri Arvind Yadav Individual
123 Shri Kartik Krishnan Individual
124 Shri Hemant Wal Individual
125 Shri Manish Varshiriya Individual
126 Shri Narayanan V.T. Individual
127 Shri Subhadeep Ghosh Individual
128 Shri Mohmmad Afzal Consumer Human Right, RTI Activist
129 Shri Abhishek Ramkrishna Individual
130 Shri Deepak Ojha Individual
131 Smt Brinda Alankar Individual
132 Shri D. K. Das Individual
133 Shri Suresh Mahangade Individual
134 Shri Ashish Vhedanar Individual
135 Shri Mahesh Kajuleshwari Individual
136 Shri Karim Noorani Individual
137 Shri U. R. Nandanwankar Individual
138 Shri K. R. Cooper Individual
139 Shri Rajesh Mishra Individual
Page 231 of 302

Sr.
No.
140 Shri Tushar Shah Individual
141 Smt Babita Mishra Individual
142 Shri Sachin Kale Individual
143 Shri Santosh Kalantri Individual
144 Shri Maruti Kheduskar Individual
145 Shri Chandrakant Sahu Individual
146 Shri Narendra Saha Individual
147 Shri B. H. Girae Individual
148 Shri D. M. Mathur Individual
149 Shri M. A. Chaudhary Individual
150 Shri Sanjeet Singh Individual
151 Shri Abhijit Dhamdhere Individual
152 Shri Viren Devathi Individual
153 Shri Arvind Shukla Individual
154 Shri Sachin Lade Individual
155 Shri Vinod Bhole Shoppers Stop
156 Shri Nikam K.R. Individual
157 Shri Ramsambhar Yadav Individual
158 Shri S.N. Rao Individual
159 Shri Tarak Oza Individual
160 Shri Deepak Mhose Individual
161 Shri T.E. Shirke Individual
162 Shri Sunil Joglekar Tata Power Co Ltd
163 Shri Pradeep Jain Indian Hotel & Restaurant Association
164 Shri Prakash Khandve Prabodhan Samaj Unnati Kendra, Borivali
165 Smt.Shweta Tiwari Hypercity Retail Ltd.
166 Shri Dattatraya Chaugule Sushma Electric & Company
167 Shri Devendra Ambekar Individual
168 Shri Shyam Sonawane Individual
169 Mrs. Ankita Salgaonkar Individual
170 Shri .Rajesh Mishra Individual
171 Shri Sachitanand Mishra Individual
172 Shri Shashi Parmar Individual
173 Shri Bhavna Mhatre Individual
174 Shri Sandep Tale Individual
175 Smt. Ujjawla Mehta Individual
Page 232 of 302

Sr.
No.
176 Shri Raees Shoppers Stop, Bandra
177 Shri Viplav Avasare Individual
178 Shri Kiran Dhanana Individual
179 Shri C.J.DSouza Individual
180 Shri R.S. Panchul Individual
181 Shri V.J.Ghodekar Individual
182 Shri Amey Naik Individual
183 Shri Bankim B Individual
184 Shri P.Mughukumar Individual
185 Shri Shamim Longekar Individual
186 Smt Laxmibai Individual
187 Smt Santabai Pawar Individual
188 Shri Umesh Rane Individual
189 Shri Naresh R.R. Individual
190 Representative
Bharatiya Republican Party Bahujan
Mahasangh
191 Representative Samarth Electricals
192 Shri Jitendra Tarde Individual
193 Shri Vilas Potnis Individual
194 Shri Gautam Jadhav Individual
195 Shri S.G.Mhaske Reliance Infrastructure Ltd
196 Shri Kishor Patil Reliance Infrastructure Ltd
197 Shri Vilas Kapile Reliance Infrastructure Ltd
198 Shri.Sridhar Krishnamurthy Reliance Infrastructure Ltd
199 Shri Kapil Sharma Reliance Infrastructure Ltd
200 Shri Vivek Mishra Reliance Infrastructure Ltd
201 Shri Ashok Kamble Reliance Infrastructure Ltd
202 Shri Ganesh Balsubramanian Reliance Infrastructure Ltd
203 Shri P.Pandya Reliance Infrastructure Ltd
204 Shri Karn Pallav Reliance Infrastructure Ltd
205 Shri Abaji Niralkar Reliance Infrastructure Ltd
206 Shri Ram Verma Reliance Infrastructure Ltd
207 Shri Anvesh Jain Reliance Infrastructure Ltd
208 Shri S.S.Chavan Reliance Infrastructure Ltd
209 Shri R Shanbhag Reliance Infrastructure Ltd
210 Shri R.R.Keelar Reliance Infrastructure Ltd
211 Shri N Sonawane Reliance Infrastructure Ltd
Page 233 of 302

Sr.
No.
212 Shri Vivek Shah Reliance Infrastructure Ltd
213 Shri M.G.Andhari Reliance Infrastructure Ltd
214 Shri M.M.Kulkarni Reliance Infrastructure Ltd
215 Shri S Trivedi Reliance Infrastructure Ltd
216 Shri Nitin Kate Reliance Infrastructure Ltd
217 Shri Vivek Mane Reliance Infrastructure Ltd
218 Shri Debashish Banerjee Reliance Infrastructure Ltd
219 Shri S.Varadkar Reliance Infrastructure Ltd
220 Shri Jaykumar Waghela Reliance Infrastructure Ltd
221 Shri Sujit Rao Reliance Infrastructure Ltd
222 Shri Vinay Modi Reliance Infrastructure Ltd
223 Smt Neeta Dolas Reliance Infrastructure Ltd
224 Shri Prakash Pareria Reliance Infrastructure Ltd
225 Shri Waman Kadam Reliance Infrastructure Ltd
226 Shri Ankush Kamble Reliance Infrastructure Ltd
227 Shri R.A.Killekar Reliance Infrastructure Ltd

Page 234 of 302

Annexure-I
Revenue from Sale of Power at revised Tariffs for the Second Control period excluding
RAC (Rs Crore)

LT

0-100 593.90 653.31 643.92 643.52
101-300 754.33 764.01 609.07 547.39
301-500 172.63 148.27 110.26 107.54
500and above 69.91 66.97 51.30 44.96

0-100 65.96 71.81 71.48 72.13
101-300 181.03 180.29 146.72 136.28
301-500 150.77 126.14 92.94 90.45
500and above 277.85 263.73 200.30 174.39
LT II (a) - 0-20 kW 1,202.18 1,126.75 1,066.19 864.35
LT II (b) - 20-50 kW 159.04 154.92 141.71 110.24
LT II (c) - above 50 kW 274.25 265.59 250.10 221.85
Religious
0.67 0.88 0.86 0.82
Grounds
0.36 0.41 0.46 0.48
Total LT 4,388 4,310 3,828 3,407
HT - - - -
HT I: HT-Industry 71.03 72.15 61.00 59.86
HT - Railway (New Category) - 52.54 45.31 51.36
Total HT 245.75 354.51 364.25 389.15
Total Revenue from consumers 4,634 4,664 4,192 3,796

Page 235 of 302

Revenue from Sale of Power at revised Tariffs for the Second Control period including
RAC (Rs Crore)

LT
LT -I Residential (Single Phase) - - -
0-100 739.61 737.67 746.47
101-300 857.76 689.03 625.25
301-500 167.70 125.78 124.08
500and above 76.04 58.87 52.19
LT -I Residential Three phase - - -
0-100 81.23 81.81 83.59
101-300 204.31 168.03 157.92
301-500 143.05 106.43 104.81
500and above 299.99 230.45 203.06
LT II (a) - 0-20 kW 1,268.07 1,211.97 989.60
LT II (b) - >20-50 kW 174.67 161.34 126.37
LT II (c) - above 50 kW 299.79 285.22 255.43
Religious
0.97 0.95 0.92
Grounds
0.46 0.53 0.56
Total LT 4,865 4,365 3,925
HT - - -
HT I: HT-Industry 79.47 69.54 69.02
HT - Railway (New Category) 59.41 51.77 59.30
Total HT 398.45 415.87 449.24
Total Revenue from consumers 5,263 4,780 4,375

Page 236 of 302

ANNEXURE II (A)
RELINACE INFRASTRUCTURE LIMITED

SCHEDULE OF ELECTRICITY TARIFFS
(With Effect from 1 September, 2013)

The Maharashtra Electricity Regulatory Commission, in exercise of the powers vested in it under
Section 61 and Section 62 of the Electricity Act, 2003 and all other powers enabling it in this
behalf, has determined, by its Order dated 1 September, 2013 in Case No.9 of 2013, the tariff
for supply of Electricity by Reliance Infrastructure Limited Distribution Business (RInfra-D)
for various classes of consumers as applicable from 1 September, 2013.
General
1. These tariffs supersede all tariffs so far in force including in the case where any
agreement provides specifically for continuance of old agreemental tariff, or any
modifications thereof as may have been already agreed upon.
2. 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.
3. The tariffs are exclusive of Electricity Duty, Tax on Sale of Electricity (ToSE) and other
charges as levied by Government or other competent authorities and the same, will be
payable by the consumers in addition to the charges levied as per the tariffs hereunder.
4. The tariffs are applicable for supply at one point only.
5. 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, in cases where RInfra-D considers that there are considerable load fluctuations in
operation
6. The tariffs are subject to the provisions of the MERC (Electricity Supply Code and Other
Conditions of Supply) Regulation, 2005 in force (i.e., as on 1 September, 2013) and
directions, if any that may be issued by the Commission from time to time.
7. Unless specifically stated to the contrary, the figures of Energy Charge relate to Rupees
per unit (kWh) charge for energy consumed during the month.
8. 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.
Page 237 of 302

LOW TENSION (LT) TARIFF
Applicability
Residential consumers who have a sanctioned load of upto and less than 0.1 kW, and who have
consumed less than 360 units per annum in the previous financial year. The applicability of
Below Poverty Line (BPL) category will have to be assessed at the end of each financial year. In
case any BPL consumer has consumed more than 360 units in the previous financial year, then
the consumer will henceforth, be considered under the LT-I residential category. Once a
consumer is classified under the LT-I category, then he cannot be classified under BPL category.
The categorisation of such BPL consumers will be reassessed at the end of the financial year, on
a pro-rata basis. Similarly, the classification of BPL consumers who have been added during the
previous year would be assessed on a pro-rata basis, i.e., 30 units per month.
All the new consumers subsequently added in any month with sanctioned load of upto and less
than 0.1 kW and consumption between 1 to 30 units (on pro rata basis of 1 unit/day) in the first
billing month, will be considered in BPL Category.

Rate Schedule - Effective from 1 September, 2013 to 31 March, 2014 (FY 2013-14)
Consumption
Slab
( kWh)
Fixed/Demand
Charge
Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
BPL Category Rs. 5 per month 1.22 0.11 0.19

LT- I Residential (Single Phase)
Applicability
Electricity used at Low/Medium Voltage for operating various appliances used for purposes like
lighting, heating, cooling, cooking, washing/cleaning, entertainment/leisure, pumping in the
following places:
a) Private residential premises,
b) Premises exclusively used for worship such as temples, gurudwaras, churches, mosques, etc.
Provided that Halls, Gardens or any other portion of the premises that may be let out for
Page 238 of 302

consideration or used for commercial activities would be charged at LT-II tariff as
applicable.
c) All Students Hostels affiliated to Educational Institutions.
d) All Ladies Hostels, such as Students (Girls) Hostels, Working Women Hostels, etc.
e) Other type of Hostels, like (i) Homes/Hostels for Destitute, Handicap or Mentally deranged
persons (ii) Remand Homes (iii) Dharamshalas, etc., subject to verification and confirmation
by RInfras concerned Zonal Chief Engineer.
f) Telephone booth owned/operated by handicapped person subject to verification and
confirmation by RInfras concerned Zonal Chief Engineer.
g) Residential premises used by professionals like Lawyers, Doctors, Professional Engineers,
Chartered Accountants, etc., in furtherance of their professional activity in their residences
but shall not include Nursing Homes and any Surgical Wards or Hospitals.

Rate Schedule Effective from 1 September, 2013 to 31 March, 2014 (FY 2013-14)
Consumption
Slab
( kWh)
Fixed/Demand
Charge
Wheeling
Charge
(Rs/kWh)
Energy Charge
(Rs./kWh)
Regulatory
Asset Charge
(Rs./kWh)
0-100 units Rs. 40 per month
$$
1.22 2.23 0.48
101 300 units
Rs. 75 per month
$$

1.22 4.78 0.84
301 500 units 1.22 6.78 1.12
Above 500
units
(balance units)
Rs. 100 per
month
$$

1.22 9.28 1.47

Note:
a)
$$
: Above fixed charges are for single phase connections. Fixed charge of Rs. 100 per
month will be levied on residential consumers availing 3 phase supply. Additional Fixed
Charge of Rs. 100 per 10 kW load or part thereof above 10 kW load shall be payable.

LT II: Low Tension Non-Residential or Commercial
Page 239 of 302

Applicability
Electricity used at Low/Medium Voltage in all non-residential, non-industrial premises and/or
commercial premises for commercial consumption meant for operating various appliances used
for purposes such as lighting, heating, cooling, cooking, washing/cleaning, entertainment/leisure,
pumping in following places:
a) Non-Residential, Commercial and Business premises, including Shopping malls.
b) All Educational Institutions, Hospitals and Dispensaries.
c) Combined lighting and power services for Entertainment including film studios, cinemas and
theatres, including multiplexes, Hospitality, Leisure, Meeting Halls and Recreation places.
d) Electricity used for the external illumination of monumental/historical/heritage buildings
approved by MTDC.

Consumption
Slab
( kWh)
Fixed/Demand
Charge
Wheeling
Charge
(Rs/kWh)
Energy Charge
(Rs./kWh)
Regulatory
Asset Charge
(Rs./kWh)
(a) 0-20 kW Rs. 250 per month 1.22 6.30 1.05
(b) > 20 kW and
50 kW
Rs. 200 per kVA
per month
1.22 8.78
1.40
(c ) > 50 kW 1.22 9.23 1.46
TOD Tariffs (in addition to above base tariffs)
0600 to 0900 hours 0.00
0900 to 1200 hours 0.50
1200 to 1800 hours 0.00
1800 to 2200 hours 1.00
2200 to 0600 hours -0.75
Note:
a) The ToD tariff is available to LT-II (b) and (c) category, and optionally available to LT- II (a)
having ToD meter installed.

Page 240 of 302

LT III: LT- Industrial upto 20 kW
Applicability
Electricity used at Low/Medium Voltage in premises for purpose of manufacturing, including
that used within these premises for general lighting, heating/cooling, etc., having a sanctioned
load upto and including 20 kW (26.8 HP). This consumer category also includes IT industry and
IT enabled services (as defined in the Government of Maharashtra Policy).

Consumption
Slab
( kWh)
Fixed/Demand
Charge
Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs. /kWh)
Regulatory Asset
Charge
(Rs./kWh)
0-20 kW Rs. 250 per month 1.22 6.78 1.12
TOD Tariffs ( Optional - in addition to above base tariffs)
0600 to 0900
hours

0.00

0900 to 1200
hours

0.50

1200 to 1800
hours

0.00

1800 to 2200
hours

1.00

2200 to 0600
hours

-0.75

Note:
a) The ToD tariff is optionally available to LT- III having ToD meter installed.
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, heating/cooling, etc. and having sanctioned load
greater than 20 kW (26.8 HP). This consumer category also includes IT industry and IT enabled
services (as defined in the Government of Maharashtra Policy).
Page 241 of 302

Consumption
Slab
( kWh)
Fixed/Demand
Charge
Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
Above 20 kW
Rs. 200 per kVA per
month
1.22 6.53 1.08
0600 to 0900
hours

0.00

0900 to 1200
hours

0.50

1200 to 1800
hours

0.00

1800 to 2200
hours

1.00

2200 to 0600
hours

-0.75

LT V: LT - Advertisements and Hoardings
Applicability
Electricity used for the purpose of advertisements, hoardings and other conspicuous consumption
such as external flood light, displays, neon signs at departmental stores, malls, multiplexes,
theatres, clubs, 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, historical/heritage buildings approved by MTDC, which shall be covered under
LT-II category depending upon Sanctioned Load.

Page 242 of 302

Consumption
Slab
( kWh)

Fixed /
Demand
Charge

Wheeling
Charge
(Rs/kWh)
Energy
Charge(Rs./kWh)
Regulatory
Asset Charge
(Rs./kWh)
All Units Rs. 400 per
month
1.22 15.78 2.38
Note
a) The electricity, that is used for the purpose of indicating/displaying the name and other
details of the shops or Commercial premises, for which electric supply is rendered, shall
not be under LT V tariff Category. Such usage of electricity shall be covered under the
prevailing tariff of such shops or commercial premises.

LT VI: LT- Street Lights
Applicability
Electricity used at Low/Medium Voltage for purpose of public street lighting, lighting in public
gardens, traffic island, bus shelters, public sanitary conveniences, police chowkies, traffic lights,
public fountains, other such common public places irrespective of whether such facilities are
being provided by the Government or the Municipality, or Port Trust or other private parties.

Consumption
Slab
( kWh)

Fixed / Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
All Units Rs. 200 per kVA
per month
1.22 7.28 1.19
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 243 of 302

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, Navaratri, Eid, Moharam, Ram Lila, Ambedkar Jayanti, Diwali,
Christmas, Guru Nanak Jayanti, etc., or areas where community prayers are held.

LT VII (B) - Temporary Supply Others (TSO)
Electricity used at Low/Medium Voltage on a temporary basis for any construction work,
decorative lighting for exhibitions, circus, film shooting, marriages, etc. and any activity not
covered under tariff LT VII (A), 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.

Consumption
Slab (kWh)
Fixed/Demand
Charge
Wheeling
Charge
(Rs/kWh)
Energy
Charge
( Rs./kWh)
Regulatory
Asset Charge
(Rs./kWh)
LT VII (A) All
Units
Rs. 200 per
connection per month
1.22 4.78 0.84
LT VII (B) All
Units
Rs. 200 per
connection month
1.22 15.78 2.38
Note : In case of LT VII (B) the Additional fixed charges of Rs. 150 per 10 kW load or part
thereof above 10 kW load shall be payable.

LT VIII: LT- Crematorium and Burial Grounds
Applicability
Page 244 of 302

Electricity used at Low/Medium Voltage in Crematorium and Burial Grounds for all purposes
including lighting, and will be applicable only to the portion catering to such activities, and in
case part of the area is being used for other commercial purposes, then a separate meter will have
to be provided for the same, and the consumption in this meter will be chargeable under LT-II
Commercial rates as applicable.

Consumption
Slab (kWh)
Fixed/Demand
Charge
Wheeling
Charge
(Rs/kWh)
Energy
Charge
( Rs./kWh)
Regulatory
Asset Charge
(Rs./kWh)
1.22 3.37 0.64

LT IX - LT- Agriculture
Applicability
Electricity used at Low/Medium Voltage by LT agricultural consumers for motive power loads
exclusively used for agricultural purposes.

Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
All Units Rs 20 per HP per
month
1.22 0.64 0.24

LT X - Public Services
Applicability
Page 245 of 302

This Tariff shall be applicable to Educational Institutions, Hospitals, dispensaries, primary health
care centres, pathology laboratories, Spiritual Organisations which are service oriented, Police
Stations, Post Offices, Defence establishments (army, navy and air-force), Public libraries and
Reading rooms, Railway except traction (shops on the platforms/railway station/bus stands will
be billed under Commercial category as per the respective slab), State transport establishments;
Railway and State Transport Workshops, Fire Service Stations, Jails, Prisons, Courts, Airports,
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

Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory
Asset
Charge
(Rs./kWh)
All Units Rs 250 per month 1.22 6.59 1.09
0600 to 0900
hours

0.00

0900 to 1200
hours

0.50

1200 to 1800
hours

0.00

1800 to 2200
hours

1.00

2200 to 0600
hours

-0.75

HIGH TENSION (HT) - TARIFF
HT I: HT Industry

Page 246 of 302

Applicability
This category includes consumers taking 3-phase electricity supply at High Voltage for purpose
of manufacturing. This Tariff shall also be applicable to IT Industry & IT enabled services (as
defined in the Government of Maharashtra policy), taking 3-phase electricity supply at High
Voltage.

Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
All Units Rs 200 per kVA
per month
0.63 7.37 1.12
0600 to 0900
hours

0.00

0900 to 1200
hours

0.50

1200 to 1800
hours

0.00

1800 to 2200
hours

1.00

2200 to 0600
hours

-0.75

HT II: HT- Commercial
Applicability
This category includes consumers of electricity such as all Educational Institutions, all Hospitals
taking supply at High Voltage.
Page 247 of 302

This category also includes consumers taking electricity supply at High Voltage for commercial
purposes, including Hotels, Shopping Malls, film studios, cinemas and theatres, including
multiplexes.
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.
These downstream entities will pay appropriate tariff as applicable as per RInfra Tariff Schedule
i.e. LT II.

Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
per month
0.63 8.42 1.27
0600 to 0900
hours

0.00

0900 to 1200
hours

0.50

1200 to 1800
hours

0.00

1800 to 2200
hours

1.00

2200 to 0600
hours

-0.75

HT III: HT- Group Housing Society
Applicability
Page 248 of 302

This category includes Group Housing Societies taking single point electricity supply at High
Voltage for consumption by individual dwellings. Such individual dwellings will pay appropriate
tariff LT I: LT- Residential as per RInfra-D Tariff Schedule in force.

Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
per month
0.63 5.37 0.84

HT IV- HT - Temporary Supply
Applicability
Electricity used at High Voltage on a temporary basis of supply for any construction work,
decorative lighting for exhibitions, circus, film shooting, marriages, etc.
This category also includes electricity supplied at High Voltage for temporary purposes during
public religious functions like Ganesh Utsav, Navaratri, Eid, Moharam, Ram Lila, Ambedkar
Jayanti, Diwali, Christmas, Guru Nanak Jayanti, etc. or areas where community prayers are held.

Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
connection per
month
0.63 12.12 1.78

HT V: HT Railways

Applicability
Page 249 of 302

Applicable to electricity supply at 100 kV/33 kV/ 22 kV/11 kV/6.6 kV to Railways including
Metro and Monorail.

Consumption Slab
( kWh)
Fixed/
Demand
Charge

Wheeling
Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory
Asset Charge
(Rs./kWh)
100/33/22/11/6.6kV -
All Units
Rs. 200 per
kVA per month
0.63 7.87 1.19

Applicability
This Tariff shall be applicable to educational institutions, hospitals, dispensaries, primary health
Stations, Post Offices, Defence establishments (army, navy and air force), Public libraries and
Railway and State Transport Workshops, Fire Service Stations, Jails, Prisons, Courts; Airports,
Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
per month
0.63 7.87 1.19
0600 to 0900 0.00
Page 250 of 302

Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
hours
0900 to 1200
hours

0.50

1200 to 1800
hours

0.00

1800 to 2200
hours

1.00

2200 to 0600
hours

-0.75

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.

In case of any variation in the fuel prices and power purchase prices with respect to these levels,
RInfra-D shall pass on adjustments, 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, as
The details of applicable ZFAC for each month shall be available on RInfra website
www.rinfra.com.

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. 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 251 of 302

effective, shall be stated in the bill. A copy of the said resolution / Order shall be made available
on the website www.rinfra.com

Power Factor Calculation
Wherever, 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 =
) (
) (
kVAh Total
kWH Total

Wherein the kVAh is =

2 2
) ( ) ( RkVAh kWh
(i.e. Square Root of the summation of the squares of kWh and RkVAh )

Power Factor Incentive (Applicable for all HT categories, LT II (B), LT II (C) and LT IV
categories)
Whenever the average power factor is more than 0.95, an incentive shall be given at the rate of
the following percentages of the amount of the monthly bill including energy charges, reliability
charges, FAC, and Fixed/Demand Charges, but excluding Taxes and Duties:

1 0.951 to 0.954 0.95 0%
2 0.955 to 0.964 0.96 1%
3 0.965 to 0.974 0.97 2%
4 0.975 to 0.984 0.98 3%
5 0.985 to 0.994 0.99 5%
6 0.995 to 1.000 1.00 7%
Page 252 of 302

Power Factor Penalty (Applicable for all HT categories, LT II (B), LT II (C) and LT IV
categories)
Whenever the average PF is less than 0.9, penal charges shall be levied at the rate of the
following percentages of the amount of the monthly bill including energy charges, reliability

1 0.895 to 0.900 0.90 0%
2 0.885 to 0.894 0.89 2%
3 0.875 to 0.884 0.88 3%
4 0.865 to 0.874 0.87 4%
5 0.855 to 0.864 0.86 5%
6 0.845 to 0.854 0.85 6%
7 0.835 to 0.844 0.84 7%
8 0.825 to 0.834 0.83 8%
9 0.815 to 0.824 0.82 9%
10 0.805 to 0.814 0.81 10%
... ... ... ...

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, delayed
payment charges of 2 percent on the total electricity bill (including Taxes and Duties) shall be
Page 253 of 302

levied on the bill amount. For the purpose of computation of time limit for payment of bills, the
day of presentation of bill or the date of the bill or "the date of issue of the bill", etc. as the
case may be, will not be excluded.

Rate of Interest on Arrears
The rate of interest chargeable on arrears will be as given below for payment of arrears-

Sr.No. Delay in Payment ( months) Interest Rate per
annum (%)
1 Payment after due date upto 3 months ( 0-3) 12
2 Payment made after 3 months and before 6 months (3-6) 15
3 Payment made after 6 months (>6) 18

Load Factor Incentive
Consumers having load factor over 75% upto 85% will be entitled to a rebate of 0.75% 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%. The total rebate under this head will be
subject to a ceiling of 15% of the energy charges for that consumer. This incentive is limited to
HT I, HT II and HT VI categories only. Further, the load factor rebate will be available only if
the consumer has no arrears with RInfra-D, and payment is made within seven days from the
date of the bill. However, 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.
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, in order to be eligible for the Load
Factor incentive.


Maximum consumption possible = Contract Demand (kVA) x Actual Power Factor
x (Total no. of hrs during the month less planned load shedding hours*)
* - Interruption/non-supply to the extent of 60 hours in a 30 day month has been built in the
scheme.

Page 254 of 302

In case the billing demand exceeds the contract demand in any particular month, then the load
factor incentive will not be payable in that month. (The billing demand definition excludes the
demand recorded during the non-peak hours i.e. 22:00 hrs to 06:00 hrs and therefore, even if the
maximum demand exceeds the contract demand in that duration, load factor incentives would be
applicable. However, the consumer would be subjected to the penal charges for exceeding the
contract demand and has to pay the applicable penal charges).

Penalty for exceeding Contract Demand
In case, a consumer (availing Demand based Tariff) exceeds his Contract Demand, 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).
In case any consumer exceeds the Contract Demand on more than three occasions in a calendar
year, the action taken in such cases would be governed by the Supply Code.

Additional Demand Charges for Consumers having Captive Power Plant
For customers having Captive Power Plant (CPP), the additional demand charges would be at a
rate of Rs. 20/kVA/month only on extent of Stand-by demand component, and not on the entire
Contract Demand. Additional Demand Charges will be levied on such consumers on the Stand-
by component, only if the consumers demand exceeds the Contract Demand.
Supply at 100 kV
a) In the event power is supplied at 100 kV, then the Consumer shall be allowed a rebate of 2%
of the monthly energy charges, over the energy charges applicable for supply at 11 kV/22 kV/33
kV.

Security Deposit
1) Subject to the provisions of sub-section (5) of Section 47 of the Act, 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, 2003.
2) The amount of the security shall be an equivalent of the average of three months of
billing or the billing cycle period, whichever is lesser. For the purpose of determining the
average billing, the average of the billing to the consumer for the last twelve months, or
Page 255 of 302

in cases where supply has been provided for a shorter period, the average of the billing of
such shorter period, shall be considered
3) Where RInfra-D requires security from a consumer at the time of commencement of
service, the amount of such security shall be estimated by the Distribution Licensee based
on the tariff category and contract demand/sanctioned load, load factor, diversity factor
and number of working shifts of the consumer.
4) RInfra-D shall re-calculate the amount of security based on the actual billing of the
consumer once in each financial year.
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, 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, if different from such person, shall be, at the option of such
person, 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.
6) Where the amount of security re-calculated pursuant as above, is higher than the security
deposit of the consumer, RInfra-D shall be entitled to raise a demand for additional
security on 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.
7) Upon termination of supply, RInfra-D shall, after recovery of all amounts due, refund the
remainder amount held by the Distribution Licensee to the person who deposited the
security, with intimation to the consumer, if different from such person.
8) A consumer - (i) with a consumption of electricity of not less than one lakh (1,00,000)
kilo-watt hours per month; and (ii) with no undisputed sums payable to RInfra-D under
Section 56 of the Act may, at the option of such consumer, deposit security, by way of
cash, irrevocable letter of credit or unconditional bank guarantee issued by a scheduled
commercial bank.
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.
Page 256 of 302

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, in relation to any period shall, unless
otherwise provided in any general or specific Order of the Commission, 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.

Contract Demand
Contract Demand means demand in Kilowatt (kW) / Kilo Volt Ampere (kVA), 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, Power Factor of 0.80 shall be
considered).

Sanctioned Load
Sanctioned Load means load in Kilowatt (kW) mutually agreed between RInfra-D and the
consumer

to 2200 hours.

Note:
a) Demand registered during the period 0600 to 2200 Hrs. will only be considered
for determination of the Billing demand.
Page 257 of 302

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.

Billing Demand (for HT categories):
hours.
c) 50% of the Contract Demand.

Note:

Page 258 of 302

ANNEXURE II (B)
RELIANCE INFRASTRUCTURE LIMITED

(With Effect from 1 April, 2014)

for various classes of consumers as applicable from 1 April, 2014
General
operation

Page 259 of 302

Applicability
Rate Schedule - Effective from 1 April, 2014 to 31 March, 2015 (FY 2014-15)
Consumption
Slab
( kWh)
Fixed/Demand
Charge
Wheeling Charge
(Rs/kWh)
Energy Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)

Applicability
following places:
applicable.
Page 260 of 302


Consumption
Slab
( kWh)
Fixed/Demand
Charge
Wheeling
Charge
(Rs/kWh)
Energy Charge
(Rs./kWh)
Regulatory
Asset Charge
(Rs./kWh)
$$
1.24 2.11 0.57
101 300 units
Rs. 75 per month
$$

1.24 3.58 0.74
301 500 units 1.24 4.36 0.86
Above 500
units
(balance units)
Rs. 100 per
month
$$

1.24 6.36 1.17

Note:
a)
$$

Applicability
Page 261 of 302

approved by MTDC.

Consumption
Slab
( kWh)
Fixed/Demand
Charge
Wheeling
Charge
(Rs/kWh)
Energy Charge
(Rs./kWh)
Regulatory
Asset Charge
(Rs./kWh)
(a) 0-20 kW Rs. 250 per month 1.24 5.47 1.03
(b) > 20 kW and
50 kW
Rs. 200 per kVA
per month
1.24
7.26
1.31
(c ) > 50 kW 1.24 7.76 1.39
0600 to 0900 hours 0.00
0900 to 1200 hours 0.50
1200 to 1800 hours 0.00
1800 to 2200 hours 1.00
2200 to 0600 hours -0.75
Note:

Page 262 of 302

Applicability

Consumption
Slab
( kWh)
Fixed/Demand
Charge
Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs. /kWh)
Regulatory Asset
Charge
(Rs./kWh)
0-20 kW Rs. 250 per month 1.24 5.51 1.04
0600 to 0900
hours

0.00

0900 to 1200
hours

0.50

1200 to 1800
hours

0.00

1800 to 2200
hours

1.00

2200 to 0600
hours

-0.75

Note:
Applicability
Page 263 of 302

Consumption
Slab
( kWh)
Fixed/Demand
Charge
Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
Above 20 kW
Rs. 200 per kVA per
month
1.24 5.26 1.00
0600 to 0900
hours

0.00

0900 to 1200
hours

0.50

1200 to 1800
hours

0.00

1800 to 2200
hours

1.00

2200 to 0600
hours

-0.75

Applicability

Page 264 of 302

Consumption
Slab
( kWh)

Fixed /
Demand
Charge

Wheeling
Charge
(Rs/kWh)
Energy
Charge(Rs./kWh)
Regulatory
Asset Charge
(Rs./kWh)
month
1.24 13.76 2.31
Note

Applicability

Consumption
Slab
( kWh)

Fixed / Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
per month
1.24 5.76 1.08
Note
Page 265 of 302


Applicability

Consumption
Slab (kWh)
Fixed/Demand
Charge
Wheeling
Charge
(Rs/kWh)
Energy
Charge
( Rs./kWh)
Regulatory
Asset Charge
(Rs./kWh)
LT VII (A) All
Units
Rs. 200 per
1.24 4.26 0.85
LT VII (B) All
Units
Rs. 200 per
connection month
1.24 14.76 2.46

Applicability
Page 266 of 302


Consumption
Slab (kWh)
Fixed/Demand
Charge
Wheeling
Charge
(Rs/kWh)
Energy
Charge
( Rs./kWh)
Regulatory
Asset Charge
(Rs./kWh)
1.24 3.76 0.77

Applicability

Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
month
1.24 0.61 0.28

Page 267 of 302

Applicability

Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory
Asset
Charge
(Rs./kWh)
0600 to 0900
hours

0.00

0900 to 1200
hours

0.50

1200 to 1800
hours

0.00

1800 to 2200
hours

1.00

2200 to 0600
hours

-0.75

Page 268 of 302

HT I: HT Industry

Applicability
Voltage.

Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
per month
0.64 5.86 1.00
0600 to 0900
hours

0.00

0900 to 1200
hours

0.50

1200 to 1800
hours

0.00

1800 to 2200
hours

1.00

2200 to 0600
hours

-0.75

Page 269 of 302

Applicability
multiplexes.
i.e. LT II.

Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
per month
0.64 7.36 1.23
0600 to 0900
hours

0.00

0900 to 1200
hours

0.50

1200 to 1800
hours

0.00

1800 to 2200
hours

1.00

2200 to 0600
hours

-0.75

Page 270 of 302

Applicability

Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
per month
0.64 5.26 0.91

Applicability

Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
connection per
month
0.64 10.36 1.69
Page 271 of 302

HT V: HT Railways

Applicability
Metro and Monorail.

Consumption Slab
( kWh)
Fixed/
Demand
Charge

Wheeling
Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory
Asset Charge
(Rs./kWh)
100/33/22/11/6.6kV -
All Units
Rs. 200 per
kVA per month
0.64 6.61 1.12

Applicability
Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
All Units
Rs 200 per kVA
0.64 6.61 1.12
Page 272 of 302

Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
per month
0600 to 0900
hours

0.00

0900 to 1200
hours

0.50

1200 to 1800
hours

0.00

1800 to 2200
hours

1.00

2200 to 0600
hours

-0.75



The details of applicable Z
FAC
for each month shall be available on RInfra website
www.rinfra.com.
Page 273 of 302


adopted-
) (
) (
kVAh Total
kWH Total


2 2
) ( ) ( RkVAh kWh
categories)
1 0.951 to 0.954 0.95 0%
2 0.955 to 0.964 0.96 1%
3 0.965 to 0.974 0.97 2%
4 0.975 to 0.984 0.98 3%
5 0.985 to 0.994 0.99 5%
6 0.995 to 1.000 1.00 7%
Page 274 of 302

categories)

1 0.895 to 0.900 0.90 0%
2 0.885 to 0.894 0.89 2%
3 0.875 to 0.884 0.88 3%
4 0.865 to 0.874 0.87 4%
5 0.855 to 0.864 0.86 5%
6 0.845 to 0.854 0.85 6%
7 0.835 to 0.844 0.84 7%
8 0.825 to 0.834 0.83 8%
9 0.815 to 0.824 0.82 9%
10 0.805 to 0.814 0.81 10%
... ... ... ...


Page 275 of 302



annum (%)

Factor incentive.


scheme.

Page 276 of 302



Supply at 100 kV
kV.

Security Deposit
Page 277 of 302

commercial bank.
Rupees Fifty.
Page 278 of 302


Definitions:
Maximum Demand

Contract Demand
considered).

Sanctioned Load
consumer

to 2200 hours.

Note:
Page 279 of 302


hours.

Note:
Page 280 of 302

ANNEXURE II (C)
RELIANCE INFRASTRUCTURE LIMITED

(With Effect from 1 April, 2015)

for various classes of consumers as applicable from 1 April, 2015
General
operation
Page 281 of 302

Applicability
Consumption
Slab
( kWh)
Fixed/Demand
Charge
Wheeling Charge
(Rs/kWh)
Energy Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)

Applicability
following places:
applicable.
Page 282 of 302


Consumption
Slab
( kWh)
Fixed/Demand
Charge
Wheeling
Charge
(Rs/kWh)
Energy Charge
(Rs./kWh)
Regulatory
Asset Charge
(Rs./kWh)
$$
1.27 2.03 0.56
101 300 units
Rs. 75 per month
$$

1.27 3.18 0.75
301 500 units 1.27 3.98 0.89
Above 500
units
(balance units)
Rs. 100 per
month
$$

1.27 5.23 1.07

Note:
a)
$$

Page 283 of 302

Applicability
approved by MTDC.

Consumption
Slab
( kWh)
Fixed/Demand
Charge
Wheeling
Charge
(Rs/kWh)
Energy Charge
(Rs./kWh)
Regulatory
Asset Charge
(Rs./kWh)
(a) 0-20 kW Rs. 250 per month 1.27 3.73 0.84
(b) > 20 kW and
50 kW
Rs. 200 per kVA
per month
1.27
4.73
1.01
(c ) > 50 kW 1.27 5.98 1.22
0600 to 0900 hours 0.00
0900 to 1200 hours 0.50
1200 to 1800 hours 0.00
1800 to 2200 hours 1.00
2200 to 0600 hours -0.75
Note:
Page 284 of 302


Applicability

Consumption
Slab
( kWh)
Fixed/Demand
Charge
Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs. /kWh)
Regulatory Asset
Charge
(Rs./kWh)
0-20 kW Rs. 250 per month 1.27 4.48 0.97
0600 to 0900
hours

0.00

0900 to 1200
hours

0.50

1200 to 1800
hours

0.00

1800 to 2200
hours

1.00

2200 to 0600
hours

-0.75

Note:

Page 285 of 302

Applicability

Consumption
Slab
( kWh)
Fixed/Demand
Charge
Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
Above 20 kW
Rs. 200 per kVA per
month
1.27 4.23 0.93
0600 to 0900
hours

0.00

0900 to 1200
hours

0.50

1200 to 1800
hours

0.00

1800 to 2200
hours

1.00

2200 to 0600
hours

-0.75

Applicability
Page 286 of 302


Consumption
Slab
( kWh)

Fixed /
Demand
Charge

Wheeling
Charge
(Rs/kWh)
Energy
Charge(Rs./kWh)
Regulatory
Asset Charge
(Rs./kWh)
month
1.27 11.73 2.19
Note

Applicability

Page 287 of 302

Consumption
Slab
( kWh)

Fixed / Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
per month
1.27 4.23 0.93
Note

Applicability

Consumption
Slab (kWh)
Fixed/Demand
Charge
Wheeling
Charge
(Rs/kWh)
Energy
Charge
( Rs./kWh)
Regulatory
Asset Charge
(Rs./kWh)
Page 288 of 302

Consumption
Slab (kWh)
Fixed/Demand
Charge
Wheeling
Charge
(Rs/kWh)
Energy
Charge
( Rs./kWh)
Regulatory
Asset Charge
(Rs./kWh)
LT VII (A) All
Units
Rs. 200 per
1.27 3.73 0.84
LT VII (B) All
Units
Rs. 200 per
connection month
1.27 12.73 2.36

Applicability

Consumption
Slab (kWh)
Fixed/Demand
Charge
Wheeling
Charge
(Rs/kWh)
Energy
Charge
( Rs./kWh)
Regulatory
Asset Charge
(Rs./kWh)
1.27 3.83 0.86

Applicability
Page 289 of 302

Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
month
1.27 0.73 0.34

Applicability

Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory
Asset
Charge
(Rs./kWh)
0600 to 0900
hours

0.00

Page 290 of 302

Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory
Asset
Charge
(Rs./kWh)
0900 to 1200
hours

0.50

1200 to 1800
hours

0.00

1800 to 2200
hours

1.00

2200 to 0600
hours

-0.75

HT I: HT Industry

Applicability
Voltage.

Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
per month
0.65 5.55 1.04
0600 to 0900 0.00
Page 291 of 302

Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
hours
0900 to 1200
hours

0.50

1200 to 1800
hours

0.00

1800 to 2200
hours

1.00

2200 to 0600
hours

-0.75

Applicability
multiplexes.
i.e. LT II.

Page 292 of 302

Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
per month
0.65 6.30 1.17
0600 to 0900
hours

0.00

0900 to 1200
hours

0.50

1200 to 1800
hours

0.00

1800 to 2200
hours

1.00

2200 to 0600
hours

-0.75

Applicability

Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
Page 293 of 302

Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
per month
0.65 5.15 0.98

Applicability

Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
connection per
month
0.65 8.35 1.52

HT V: HT Railways

Applicability
Metro and Monorail.

Page 294 of 302

Consumption Slab
( kWh)
Fixed/
Demand
Charge

Wheeling
Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory
Asset Charge
(Rs./kWh)
100/33/22/11/6.6kV -
All Units
Rs. 200 per
kVA per month
0.65 5.35 1.01

Applicability
Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
per month
0.65 5.35 1.01
0600 to 0900
hours

0.00

0900 to 1200
hours

0.50

1200 to 1800 0.00
Page 295 of 302

Consumption
Slab
( kWh)
Fixed/ Demand
Charge

Wheeling Charge
(Rs/kWh)
Energy
Charge
(Rs./kWh)
Regulatory Asset
Charge
(Rs./kWh)
hours
1800 to 2200
hours

1.00

2200 to 0600
hours

-0.75



The details of applicable Z
FAC
for each month shall be available on RInfra website
www.rinfra.com.


Page 296 of 302

adopted-

) (
) (
kVAh Total
kWH Total


2 2
) ( ) ( RkVAh kWh

categories)

1 0.951 to 0.954 0.95 0%
2 0.955 to 0.964 0.96 1%
3 0.965 to 0.974 0.97 2%
4 0.975 to 0.984 0.98 3%
5 0.985 to 0.994 0.99 5%
6 0.995 to 1.000 1.00 7%

Page 297 of 302

categories)

1 0.895 to 0.900 0.90 0%
2 0.885 to 0.894 0.89 2%
3 0.875 to 0.884 0.88 3%
4 0.865 to 0.874 0.87 4%
5 0.855 to 0.864 0.86 5%
6 0.845 to 0.854 0.85 6%
7 0.835 to 0.844 0.84 7%
8 0.825 to 0.834 0.83 8%
9 0.815 to 0.824 0.82 9%
10 0.805 to 0.814 0.81 10%
... ... ... ...


Page 298 of 302



annum (%)

Factor incentive.


scheme.

Page 299 of 302



Supply at 100 kV
kV.

Security Deposit
Page 300 of 302

commercial bank.
Rupees Fifty.
Page 301 of 302


Definitions:
Maximum Demand

Contract Demand
considered).

Sanctioned Load
consumer

to 2200 hours.

Note:
Page 302 of 302


hours.

Note:

Reliance Order Case No 9 of 2013

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Reliance Order Case No 9 of 2013

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Before the

MAHARASHTRA ELECTRICITY REGULATORY COMMISSION

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