Madhya Gujarat Vij Company Ltd.

Transcription

1 BEFORE THE GUJARAT ELECTRICITY REGULATORY COMMISSION GANDHINAGAR Summary of Case 1624 /2016 In respect of Petition for True up of & Determination of Multi-Year ARR for to & Determination of final ARR for & Tariff determination for Filed by:- Madhya Gujarat Vij Company Ltd. Corp. Office: Sardar Patel Vidyut Bhavan, Race Course Road, VADODARA Save Energy for Benefit of Self and Nation Page 1 of 13

2 Summary of Petition 1624 / 2016: (1) Introduction: Madhya Gujarat Vij Company Limited (MGVCL) is one of the distribution companies engaged in distribution of electricity in the Central Part of Gujarat. The Madhya Gujarat Vij Co. Ltd obtained its Certificate of Commencement of Business on the 15 th October, However, the Company started its commercial operations w.e.f. 1 st April The Gujarat Electricity Regulatory Commission (hereinafter referred to as GERC or the Hon ble Commission ), an independent statutory body constituted under the provisions of the Electricity Regulatory Commissions (ERC) Act, 1998, is vested with the authority of regulating the power sector in the State inter alia setting of tariff for electricity consumers. The Hon ble Commission is now deemed to be the Commission established under Sub- Section (1) of Section-3 of the Gujarat Electricity Industries (Reorganization and Regulations) Act, Hon ble Commission notified the Gujarat Electricity Regulatory Commission (Multi-Year Tariff) Regulations, 2016 ( GERC MYT Regulations, 2016 ) on 29th March 2016 and shall be applicable for determination of tariff in all cases covered under the regulations from 1st April, 2016 onwards. Under section 62 of the Electricity Act, 2003 and under the MYT Regulation, 2016 along with other guidelines and directions issued by the GERC from time to time, MGVCL is required to file a Petition for Truing-Up for and Determination of Multi-Year ARR for to,determination of final ARR for FY and Tariff Petition for to the Hon ble Commission: SUBMISSION BY MGVCL TO THE HON BLE COMMISSION Under section 62 of the Electricity Act, 2003 and GERC MYT Regulations, 2016, MGVCL has submitted the Petition for True-up of, Determination of Multi-Year ARR for to, Determination of final ARR for and Determination of Tariff for to the Hon ble Commission for approval. (2) True Up for : (a) Category wise Sales and Revenue for : The actual energy sales and revenue for are as under: Table: Category-wise Sales and Revenue (Approved) Sales (MUs) (Actual) A LT Consumers 1 RGP GLP Non-RGP & LTMD Public Water Works Agriculture - Unmetered Agriculture - metered Page 2 of 13

3 Sales (MUs) (Approved) (Actual) 7 Public Lighting LT Total (A) B HT Consumers 8 Industrial HT Railway Traction HT Total (A) Grand Total (A + B) (b) Distribution loss for : Actual Distribution loss for vis-à-vis approved is as under. DISTRIBUTION LOSSES (Approved) (Actual) 1 Distribution Losses 12.00% 11.64% (c) Energy Requirement: The gross energy requirement for MGVCL is as follows (Actual vis-à-vis approved) Energy Requirement and Energy Balance S. Unit (Approved) (Actual) 1 Energy Sales MUs , Distribution Losses MUs 1, , % 12.00% 11.64% 3 Energy Requirement MUs 9, , Transmission Losses MUs Total Energy to be input to Transmission System MUs 9, , Pooled Losses in PGCIL System MUs Total Energy Requirement MUs 9, , (d) Capital Expenditure: A B Capital Expenditure incurred by MGVCL in vis-à-vis approved is as under: Capital Expenditure (Approved) FY (Actual) Deviation Distribution Schemes Normal Development Scheme Distribution Infra & Shifting Schemes(DISS) (9.27) Electricification of Hutments (1.20) Kutir Jyoti Scheme Others Harijan Basti - Petapara (0.50) Total Rural Electrification Schemes TASP (Wells and Petapara) (16.89) Special Component plan (2.66) RE Normal Wells (Tatkal and LI) RE Wells(OA + SPA) (134.24) Dark Zone (35.88) Page 3 of 13

4 (Approved) FY (Actual) Deviation Total (125.99) C Others Energy Conservation(HVDS) Sagar Khedu Total D Non Plan Schemes IPDS (63.80) SCADA Part-A RAPDRP (Part A) RAPDRP (Part B) RGGVY/DDUGJY (65.64) SCADA PART B Total (92.17) E National Electricity Fund (NEF) Schemes Total F New Innovative Schemes Line Capacitors Automatic meter reading Replacement of Conductors/TC Misc. Civil + Electrical Works Total G Other Schemes Urban Development Vehicle (0.33) Furniture (0.72) Total (0.45) H Capital Expenditure Total (118.02) (e) FUNDING OF CAPEX The detailed breakup of funding of capital expenditure during is mentioned below. Funding of Capital Expenditure (Approved) (Actual) Deviation 1 Capitalization (117.73) 2 Less : Consumer Contribution Grants Balance CAPEX (188.11) 5 70% (131.67) 6 30% (56.43) (f) Aggregate Revenue Requirement of : Aggregate Revenue Requirement for for MGVCL in comparison with values approved by the Hon ble Commission is as under. Aggregate Revenue Requirement for (Approved) (Actual) Deviation 1 Cost of Power Purchase 4, , (491.40) 2 Operation & Maintenance Expenses (23.67) 2.1 Employee Cost (40.41) 2.2 Repair & Maintenance (5.91) 2.3 Administration & General Charges (2.18) 2.4 Other Debits (0.54) 2.5 Extraordinary Items Net Prior Period Expenses / (Income) - (2.28) 2.28 Page 4 of 13

5 (Approved) (Actual) Deviation 2.7 Other Expenses Capitalised (77.00) (100.09) Depreciation (30.60) 4 Interest & Finance Charges (2.69) 5 Interest on Working Capital Provision for Bad Debts (20.10) 7 Sub-Total [1 to 6] 4, , (568.46) 8 Return on Equity (17.83) 9 Provision for Tax / Tax Paid (15.48) 10 Total Expenditure (7 to 9) 4, , (601.77) 11 Less: Non-Tariff Income (11.98) 12 Aggregate Revenue Requirement (10-11) 4, , (589.79) (g) Net Gain/ (Loss) : Net Gain/Loss to MGVCL on account of controllable factors and uncontrollable factors is given here under. Net Gain/ (Loss) for Gain/(Loss) Gain/(Loss) due to due to (Approved) (Actual) Controllable Uncontrollable Factors Factors 1 Cost of Power Purchase 4, , (507.68) 2 Operation & Maintenance Expenses (48.50) Employee Cost (40.41) Repair & Maintenance (5.91) Administration & General Charges (2.18) Other Debits (0.54) 2.5 Extraordinary Items Net Prior Period Expenses / (Income) - (2.28) Other Expenses Capitalised (77.00) (100.09) Depreciation (30.60) 4 Interest & Finance Charges (2.69) 5 Interest on Working Capital Provision for Bad Debts (20.10) - 7 Return on Equity (17.83) 8 Provision for Tax / Tax Paid (15.48) 9 ARR (1 to 8) 4, , (52.31) (549.46) 10 Non - Tariff Income (11.98) 11 Total ARR (9-10) 4, , (52.31) (537.48) (h) Revenue for : Actual Revenue of MGVCL vis-à-vis approved for. Revenue for (Approved) (Actual) 1 Revenue from Sale of Power 3, Revenue from FPPPA at Rs per kwh , Other Income (Consumer related) Total Revenue excluding subsidy (1+2+3) 4, , Agriculture Subsidy Total Revenue including subsidy (4+5) 4, , Page 5 of 13

6 (i) Revenue Gap for : The Hon ble Commission in its Order dated 29th April, 2014 has approved Aggregate Revenue Requirement of Rs Crores for. The Hon ble Commission had also added Revenue gap/(surplus) of Rs Crores due to truing up of FY and DSM programme expenditure of Rs Crores in the above Aggregate Revenue Requirement of Rs Crores and total approved Aggregate Revenue Requirement was Rs Crores. As per the mechanism specified in the MYT Regulation 2011, MGVCL proposes to pass on a sum of 1/3rd of total gain/(loss) on account of controllable factors i.e. Rs. (17.44) Crores and total gain/(loss) on account of uncontrollable factors i.e. Rs. (537.48) Crores to the consumers. Adjusting these to the net Aggregate Revenue Requirement, MGVCL has arrived at the Revised Aggregate Revenue Requirement for at Rs Crores. This revised Aggregate Revenue Requirement is compared against the revised income under various heads including Revenue with Existing Tariff of Rs Crores, Other Consumer related Income of Rs Crores, Agriculture Subsidies of Rs Crores, summing up to a Total Revenue of Rs Crores. Accordingly, total Revenue Gap of MGVCL for after treatment of gain/(loss) due to controllable / uncontrollable factors is computed at Rs Crores as shown in the table below: TABLE : REVENUE GAP FOR 1 Aggregate Revenue Requirement originally approved for FY , Add: Gap/(Surplus) of FY Add: DSM Programme expenditure Gain / (Loss) on account of Uncontrollable factor to be passed on to Consumer Gain / (Loss) on account of Controllable factor to be passed on to Consumer (1/3rd of Total Gain / Loss) Revised ARR for ( ) (537.48) (17.44) 5, Revenue from Sale of Power 4, Other Income (Consumer related) Total Revenue excluding Subsidy (7 + 8) 5, Agriculture Subsidy Total Revenue including Subsidy (9+10) 5, Revised Gap after treating gains/(losses) due to Controllable/ Uncontrollable factors (6-11) The Hon ble Commission is requested to approve above mentioned gap and allow MGVCL to recover this gap in. Page 6 of 13

7 (4) Multi Year Tariff for to : (A) PROJECTION OF ENERGY REQUIREMENT FOR TO Approach for Sales Projection It has been observed from past experience that the historical trend method has proved to be a reasonably accurate and well accepted method for estimating the load, number of consumers and energy consumption. In light of the above, MGVCL has estimated the above for various customer categories primarily based on the CAGR trends during past years. Wherever the trend has seemed unreasonable or unsustainable, the growth factors have been corrected by the company, to arrive at more realistic projections. Summary of Growth & Projections The growth rates observed in the energy sold to each consumer category has been analyzed for the purpose of sales projections for the control period FY to The analysis of the growth rate lends insight into the behaviour of each category and hence forms the basis of forecasting the sales for each category. THE BREAK-UP OF THE PAST SALES AND THE CAGR GROWTH RATES FOR DIFFERENT PERIODS (5 YEARS, 4 YEAR, 3 YEAR, 2 YEAR AND YEAR ON YEAR) THEREOF ARE AS FOLLOWS. CAGR HAS BEEN COMPUTED FOR EACH CONSUMER CATEGORY FOR THE PAST 5-YEAR PERIOD FY TO, THE 4-YEAR PERIOD FY TO FY , THE 3-YEAR PERIOD FY TO, AND THE 2-YEAR PERIOD FY TO, ALONG WITH THE Y-O-Y GROWTH RATE OF FY OVER. Following table summarizes the growth rate assumptions GROWTH RATE FOR SALES, NO. OF CONSUMERS AND CONNECTED LOAD Category Sales Consumers Connected Load LOW TENSION 1 RGP 7.37% 2.57% 5.31% 2 GLP 7.32% 4.57% 4.44% 3 Non-RGP & LTMD 5.82% 1.86% 4.44% 4 Public Water Works 9.44% 14.42% 5.69% 5 Agriculture- Unmetered 0.00% 0.00% 0.00% 6 Agriculture- Metered Street Light 0.91% 4.51% 7.59% HIGH TENSION 1 Industrial HT 2.83% 5.74% 11.23% 2 Railway Traction 0.00% 0.00% 0.00% The estimated Sales, of consumers and Connected load based on the above growth rates and as per the methodology used for agriculture metered category are projected in the table below: Page 7 of 13

8 PROJECTION OF SALES (MUS) Category LOW TENSION 1 RGP GLP Non-RGP & LTMD Public Water Works Agriculture-Unmetered Agriculture-Metered Street Light Sub-Total HIGH TENSION 1 Industrial HT Railway Traction Sub Total TOTAL PROJECTION OF NO. OF CONSUMERS Category LOW TENSION 1 RGP GLP Non-RGP & LTMD Public Water Works Agriculture-Unmetered Agriculture-Metered Street Light Sub-Total HIGH TENSION 1 Industrial HT Railway Traction Sub Total TOTAL PROJECTION OF CONNECTED LOAD (MW/MVA) Category LOW TENSION 1 RGP GLP Non-RGP & LTMD Public Water Works Agriculture-Unmetered Agriculture-Metered Street Light Sub-Total HIGH TENSION 1 Industrial HT Railway Traction Sub Total TOTAL (b) Projection of Distribution Loss and Energy Requirement: Distribution Loss for the to Distribution Loss 11.75% 11.70% 11.65% 11.60% 11.55% Page 8 of 13

9 (c) Energy Requirement for the to : Distribution Losses Energy Requirement Transmission Losses Total Energy to be input to Transmission System Pooled Losses in PGCIL System Total Energy Requirement Unit Energy Balance for the to Energy Sales MUs MUs % 11.75% 11.70% 11.65% 11.60% 11.55% MUs MUs % 3.85% 3.80% 3.85% 3.80% 3.85% MUs MUs MUs (d) Power Purchase Cost: Bulk Supply Tariff: For estimation of Power Purchase Cost methodology of Bulk Supply Tariff (BST) is proposed with the objective of keeping uniform retail tariff throughout the State. The BST for DISCOMs includes the cost of power purchase from various generating stations, the transmission costs of PGCIL, GETCO and the cost of bulk supplier GUVNL. The revenue earned from sale of traded power is subtracted from the total power purchase cost to arrive at net power purchase cost to be charged to the four DISCOMs. The amount available for power purchase with the four DISCOMs is arrived at by subtracting the sum of total expenses other than the power purchase cost of all the four DISCOMs from the total revenue of the four DISCOMs. The difference between the net power purchase cost and the amount available with the four Discoms, indicates the revenue gap. This revenue gap varies from Discom to Discom. The bulk supply tariffs for the four Discoms are fixed keeping in view the magnitude of the revenue gap. For the, total gap projected is Rs.676 Crores for the sector as a whole, for MGVCL, the proportionate allocated gap for FY works out to be Rs. 88 Crores. The allocated gap amount of each DISCOM has been added to the amount available for power purchase for that DISCOM and the figure has been divided by the number of units projected to be purchased by the DISCOMs to arrive at BST at Rs/kWh. Accordingly BST for MGVCL for works out to Rs per Kwh and total Power Purchase Cost of Rs Crores, for Rs per Kwh and total power purchase cost Rs Crores, for FY and Rs per Kwh and total power purchase cost Rs Crores and Rs per Kwh and total power purchase cost Rs Crores respectively and for Rs per Kwh and total power purchase cost Rs Crores. (e) Capital Expenditure Plan: The scheme-wise projected capital expenditure for the MYT petition under second control period from to is as shown below: Table: Capital Expenditure Plan Rs. in Crores A Distribution Schemes Normal Development Scheme Distribution Infra & Page 9 of 13

10 B Shifting Schemes (DISS) Electricity of Hutments Kutir Jyoti Scheme Others Harijan Basti - Petapara Total Rural Electrification Schemes TASP(Wells and Petapara) Special Component plan RE Wells(OA + SPA) Dark Zone Total C Non Plan Schemes IPDS DDUGJY R-APDRP (SCADA)-A R-APDRP (SCADA)-B RAPDRP (Part A) RAPDRP (Part B) Total D Other Schemes E 1 Sagar Khedu Energy Conservation (HVDS) Vehicle Misc. Civil + Electrical Works Total Capital Expenditure Total (f) Funding of CAPEX: Funding of above mentioned CAPEX is envisaged through various sources categorized indebt four headings namely: Consumer Contribution, Grants, Equity and Debt. Funding Plan of Capital Expenditure 1 Capitalisation Less: Consumer Contribution Less: Grants Balance CAPEX % % (g) Summary of ARR proposed for to : Table below shows projection of Aggregate Revenue Requirement by MGVCL for the control period to Cost of Power Purchase 4, , , , , Page 10 of 13

11 2 Operation & Maintenance Expenses 2.1 Employee Cost Repair & Maintenance Administration & General Charges Other Debits Extraordinary Items Net Prior Period Expenses / (Income) Other Expenses Capitalised (103.31) (109.22) (115.47) (122.07) (129.06) 3 Depreciation Interest & Finance Charges Interest on Working Capital Provision for Bad Debts Sub-Total (1 to 6) 5, , , , , Return on Equity Provision for Tax / Tax Paid Total Expenditure (7 to 9) Less: Non-Tariff Income 5, , , , , Aggregate Revenue Requirement (10-11) 5, , , , , (5) Projection of Final ARR for : GERC Order dated 2nd December, 2015 on the Petition 1534/2015 states the following: We also decide that the licensees/generating companies shall file the ARR for based on the MYT Regulations, for to and the true up for the same shall also be governed as per the new MYT Regulations... Accordingly, the Final ARR for as per GERC MYT Regulations, 2016 is projected as below: TABLE: PROJECTED FINAL ARR FOR (Final) 1 Cost of Power Purchase 4, Operation & Maintenance Expenses Employee Cost Repair & Maintenance Administration & General Charges Other Debits Extraordinary Items - Page 11 of 13

12 (Final) 2.6 Net Prior Period Expenses / (Income) Other Expenses Capitalised (103.31) 3 Depreciation Interest & Finance Charges Interest on Working Capital - 6 Provision for Bad Debts Sub-Total [1 to 6] 5, Return on Equity Provision for Tax / Tax Paid Total Expenditure (7 to 9) 5, Less: Non-Tariff Income Aggregate Revenue Requirement (10-11) 5, MGVCL request the Hon ble commission to approve the final ARR for FY as above. (6) Tariff for FY : Estimate Revenue at existing Tariff for and estimated revenue gap at existing tariff for Total Revenue for at existing Tariff: 1 Revenue with Existing Tariff 4, Base FPPPA 143 paisa/kwh 1, Other Income (Consumer related) Agriculture Subsidy Total Revenue including subsidy (1 to 4) 5, Estimated Revenue Gap for at Existing Tariff 1 Aggregate Revenue Requirement for 5, Revenue Gap from True up of Total Aggregate Revenue Requirement for FY , Revenue with Existing Tariff 4, FPPPA 143 paisa/kwh 1, Other Income (Consumer related) Agriculture Subsidy Total Revenue including subsidy for (4 to 7) 5, Gap/(Surplus) (3-8) The Hon ble Commission is requested to approve the above mentioned gap. There are no changes/revision/modification proposed in the tariff structure by the company for Page 12 of 13

13 (7) PRAYER MGVCL respectfully prays to the Hon'ble Commission: 1. To admit this Petition seeking True up of, Determination of Multi-Year ARR for to, Determination of final ARR for and Determination of Tariff for. 2. To approve the True up for and allow sharing of gains/losses with the Consumers as per sharing mechanism prescribed in the GERC MYT Regulations, To approve Multi-Year ARR for to as per GERC MYT Regulations To approve Final ARR for 5. To consider approved True up parameters & Multi-Year ARR of GSECL, GETCO and SLDC while finalizing Tariff of the Petitioner. 6. To approve the terms and conditions of Tariff for and various other matters as proposed in this petition and proposed changes therein. 7. Pass suitable orders for implementation of Tariff Proposal for for making it applicable from 1 st April, 2017 onwards. 8. To grant any other relief as the Hon'ble Commission may consider appropriate. 9. The Petitioner craves leave of the Hon'ble Commission to allow further submissions, addition and alteration to this Petition as may be necessary from time to time. 10. Pass any other Order as the Hon ble Commission may deem fit and appropriate under the circumstances of the case and in the interest of justice. (8) Provisions for availing the petition copy : Copy of the petition will be available for inspection as well as for sale at the cost of Rs. 200/- to the interested persons at the office of The Chief Engineer, Corporate Office, Madhya Gujarat Vij Company Ltd, S.P.Vidyut Bhavan,Race Course,vadodara and at the office of the Superintending Engineer of MGVCL, in Charge of O&M Circle. For obtaining the copy of the petition by post, postage Rs.50/- will be payable extra. NOTE: - The total amount in such event is to be sent by Money Order or Demand Draft payable in favor of Madhya Gujarat Vij Company Ltd. The electronic copies of the above mentioned petition are available at website and (9) Guideline for submission of response: In accordance with GERC ( Conduct of Business) Regulations 2004, it is hereby notified that the persons who are interested in filing their objections/suggestions on the above subject matter petition, may file the same with the Secretary, Gujarat Electricity Regulatory Commission, 6 th floor, GIFT One, Road 5C,Zone 5, GIFT City, Gandhinagar along with the document on which they want to rely upon, in five sets, duly supported by an affidavit with the copy to the undersigned on or before and also indicate whether they intend to be heard in person. Page 13 of 13