BEFORE
MAHARASHTRA ELECTRICITY REGULATORY
COMMISSION
PETITION FOR
FINAL TRUE UP FOR FY 2017-18 & FY 2018-19,
PROVISIONAL TRUE UP FOR FY 2019-20
AND
MULTI YEAR TARIFF FOR
FY 2020-21 TO FY 2024-25
Maharashtra State Electricity Distribution Company Ltd.
Regd. Off: Prakashgad, Anant Kanekar Marg, Bandra (E),
Mumbai-400051
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
EXECUTIVE SUMMARY
A. Background
The Hon’ble Commission has issued the MYT Regulations 2019 for the 4th Control
Period from FY 2020-21 to FY 2024-25 on 01st August, 2019. As per the provisions
of Regulation 5.1(a) of the said Regulations, Distribution Licensee has to file Multi
Year Tariff Petition (MYT Petition) by 30th November 2019. Accordingly, MSEDCL
has submitted the MYT Petition on 26th November 2019.
The MYT Petition under section 62 of the Electricity Act, 2003 and MERC MYT
Regulations, 2019 comprises of following:
•
•
•
•
•
Truing-up for FY 2017-18 based on Audited Annual Accounts under MERC
(MYT) Regulations, 2015;
Truing-up for FY 2018-19 based on Audited Annual Accounts under MERC
(MYT) Regulations, 2015;
Provisional Truing-up for FY 2019-20 based on provisional information
available for FY 2019-20 under MERC (MYT) Regulations, 2015;
Aggregate Revenue Requirement, expected revenue from existing Tariff and
charges, expected revenue gap, and proposed category-wise Tariff for the
period FY20 20-21 to FY 2024-25 under MYT Regulations, 2019;
Revision in Schedule of Charges;
B. Final True Up for FY 2017-18
Based on the Audited Annual Accounts of MSEDCL, the Aggregate Revenue
Requirement (ARR) for FY 2017-18 is determined at Rs. 66,010.58 Cr. based on
all the cost parameters as specified in the following table. The final True Up for FY
2017-18 comparing the actual audited data for FY 2017-18 with those approved by
the Hon’ble Commission vide MTR Order dated 12th September 2018 in Case no.
195 of 2017 is summarized below.
MSEDCL
January 20
-1-
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
Rs. Crs
Particulars
Power Purchase Expenses
Operation & Maintenance Expenses
Depreciation Expenses
Interest on Loan Capital
Interest on Normative Working Capital
Interest on Consumers Security Deposit
Other Finance Charges
Provision for bad and doubtful debts
Other Expenses
Intra-State Transmission Charges MSLDC charge
Incentives/Discounts
DSM expenses
Return on Equity Capital
RLC refund
ASC refund
Effect of sharing of gains/losses
Past Period Adjustment by Commission
Impact of payment to MPECS in future years
Aggregate Revenue Requirement
Revenue from Sale of Power
Non-Tariff Income
Income from Open Access Charges
Income from Trading of Surplus Power
Income from Wheeling Charges
Income from Additional Surcharge
Total Revenue
Revenue Gap/(Surplus)
FY 2017-18
(Approved)
49,129.74
6,990.67
2,183.38
1,586.38
129.90
740.35
491.53
63.30
4,812.17
246.58
0.88
1,826.01
(1,116.00)
46.20
67,131.10
60,538.76
447.80
536.17
179.94
1.46
118.88
61,823.01
5,308.08
FY 2017-18
(Actual)
48,422.63
6,807.02
2,118.85
1,372.34
130.48
632.60
28.34
680.73
386.47
4,812.17
242.40
4.30
1,739.62
0.70
0.49
(299.01)
(1,116.00)
46.46
66,010.58
61,146.03
380.33
546.56
186.27
1.46
118.88
62,379.54
3,631.04
Deviation
(707.11)
(183.64)
(64.54)
(214.05)
0.58
(107.75)
28.34
189.20
323.18
(4.19)
3.42
(86.39)
0.70
0.49
(299.01)
0.26
(1,120.52)
607.27
(67.46)
10.40
6.33
556.53
(1,677.05)
MSEDCL submits that at the time of Provisional True up for FY 2017-18, MSEDCL
had submitted provisional numbers. As the MSEDCL’s Accounts have been
audited subsequently, MSEDCL is submitting the final true-up based on the audited
accounts.
C. Final True Up for FY 2018-19
Based on the Audited Annual Accounts of MSEDCL, the Aggregate Revenue
Requirement (ARR) for FY 2018-19 is determined at Rs. 76,942.44 Cr. based on
all the cost parameters as specified in the following table. The final True Up for FY
2018-19 comparing the actual audited data for FY 2018-19 with those approved by
the Hon’ble Commission vide MTR Order dated 12th September 2018 in Case no.
195 of 2017 is summarized below.
MSEDCL
January 20
-2-
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
Rs. Crs
Particulars
Power Purchase Expenses
Operation & Maintenance Expenses
Depreciation Expenses
Interest on Loan Capital
Interest on Normative Working Capital
Interest on Consumers Security Deposit
Other Finance Charges
Provision for bad and doubtful debts
Other Expenses
Income Tax
Intra-State Transmission Charges MSLDC charge
Incentives/Discounts
Contribution to Contingency Reserves
Return on Equity Capital
RLC refund
Revenue Gap Allowed
Effect of sharing of gains/losses
Past Period Adjustment by Commission
Impact of payment to MPECS in future years
Aggregate Revenue Requirement
Revenue from Sale of Power
Non-Tariff Income
Income from Open Access Charges
Income from Trading of Surplus Power
Income from Wheeling Charges
Income from Additional Surcharge
Total Revenue
Revenue Gap/(Surplus)
FY 2018-19
(Approved)
50,589.49
7,344.40
2,329.48
1,592.72
124.43
741.41
26.33
66.47
4,302.54
258.91
1,985.60
2,256.56
(1,031.50)
43.18
70,630.03
68,813.54
1,051.19
641.33
1.53
122.44
70,630.02
FY 2018-19
(Actual)
56,260.34
6,912.20
2,464.00
1,350.25
132.39
665.28
26.11
732.63
65.07
215.08
4,775.50
287.38
126.00
1,812.34
1.67
2,256.56
(152.29)
(1,031.50)
43.43
76,942.44
72,591.72
609.35
387.11
408.82
1.79
108.44
74,107.23
2,835.21
Deviation
5,670.85
(432.20)
134.52
(242.47)
7.96
(76.13)
26.11
706.30
(1.40)
215.08
472.96
28.47
126.00
(173.26)
1.67
(152.29)
0.25
6,312.41
3,778.18
(441.84)
(254.22)
408.82
0.26
(14.00)
3,477.21
2,835.20
Major reasons for deviation are higher power purchase cost due to increased sales
and increase in power purchase cost , higher revenue from sale of power, change
in actual consumer mix vis-à-vis that approved by Hon’ble Commission; revision
in normative O&M Expenses approved by Hon’ble Commission as the applicable
WPI & CPI indices being different than those considered by Hon’ble Commission.
D. Provisional True-up for FY 2019-20
Aggregate Revenue Requirement of MSEDCL for FY 2019-20 is estimated
considering the provisional data available for the first six months of the FY 201920 and projections for the remaining six months.
Based on the provisional true-up, the Aggregate Revenue Requirement (ARR) for
FY 2019-20 is Rs. 79,850.07 Cr. The provisional True Up for FY 2019-20,
comparing the estimated data with that approved by the Hon’ble Commission vide
MSEDCL
January 20
-3-
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
MTR Order dated 12th September 2018 in Case no. 195 of 2017 is summarized
below.
Rs. Crs
Particulars
Power Purchase Expenses
Operation & Maintenance Expenses
Depreciation Expenses
Interest on Loan Capital
Interest on Normative Working Capital
Interest on Consumers Security Deposit
Other Finance Charges
Provision for bad and doubtful debts
Other Expenses
Intra-State Transmission Charges MSLDC charge
Incentives/Discounts
Contribution to Contingency Reserves
Return on Equity Capital
RLC refund
Past Period Adjustment by Commission
Revenue Gap Allowed
Impact of payment to MPECS
Aggregate Revenue Requirement
Revenue from Sale of Power
Non-Tariff Income
Income from Open Access Charges
Income from Trading of Surplus Power
Income from Wheeling Charges
Income from Additional Surcharge
Total Revenue
Revenue Gap/(Surplus)
FY 2019-20
(Approved)
52,738.26
7,715.47
2,411.41
1,471.03
126.77
815.54
69.79
4,863.74
271.86
2,145.59
853.08
2,562.93
40.17
76,085.65
74,179.45
1,103.75
674.71
1.62
126.12
76,085.65
FY 2019-20
(Estimated)
56,305.45
7,107.96
2,594.37
1,349.54
127.89
796.03
31.10
845.43
50.08
4,867.55
307.03
142.85
1,866.79
1.84
853.08
2,562.93
40.17
79,850.07
76,371.19
361.66
211.92
298.18
1.79
317.14
77,561.88
2,288.19
Deviation
3,567.19
(607.51)
182.96
(121.49)
1.11
(19.52)
31.10
845.43
(19.71)
3.81
35.17
(278.80)
1.84
3,764.43
2,191.74
(742.09)
(462.80)
298.18
0.17
191.03
1,476.24
2,288.19
Major reasons for deviation are increase in power purchase expenses, change in
revenue from sale of power due to change in consumer mix; and change in capex
related expenses. MSEDCL submits that these deviations are beyond the
reasonable control of MSEDCL.
E. Aggregate Revenue Requirement for FY 2020-21 to FY 2024-25
The aggregate revenue requirement for the period i.e. FY 2020-21 to FY 2024-25
has been determined based on the provisions of the MYT Regulations, 2019 and
certain assumptions.
1. Sales Projection
MSEDCL has used historical trend method and estimated energy consumption
for various consumer categories mostly using 3 year CAGR. Wherever it is
MSEDCL
January 20
-4-
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
observed that the trend is unreasonable/unsustainable, the growth factors have
been corrected to arrive at more realistic projections.
MSEDCL has projected the sales for the period FY 2020-21 to FY 2024-25
considering the historical sales. The projection of Sales for HT category is
outlined in the following table:
Category
HT-I Industries
HT-II Commercial
HT III Railways
HT IV-PWW
HT V Agricultural
HT VI Bulk Supply (Housing Complex)
HT Temporary
HT-IX Public services
MSPGCL AUX SUPPLY
HT Ag Others
HT EV Charging Stations
Total -HT Sales
FY 20-21 FY 21-22
Projected Projected
33,586
34,929
1,850
1,887
80
82
1,745
1,832
1,486
1,685
239
242
5
5
1,044
1,065
184
184
299
332
0.31
0.31
40,519
42,243
FY 22-23 FY 23-24
Projected Projected
36,326
37,779
1,925
1,963
84
85
1,924
2,020
1,919
2,192
244
246
5
5
1,086
1,108
184
184
368
410
0.31
0.31
44,065
45,993
FY 24-25
Projected
39,290
2,003
87
2,121
2,512
249
5
1,130
184
456
0.31
48,037
The projection of Sales for LT category is outlined in the following table:
Category
LT Category
LT I -BPL
LT I Domestic
LT II Non Domestic
LT III PWW
LT IV Agriculture
LT V Powerloom
LT V Industrial General
LT VI Streetlight
LT VII- Temporary Connection
LT VIII Advertisement & Hoardings
LT IX – Crematoriums & Burial Grounds
LT X - Public services
LT XI EV Charging Stations
Total LT Sales
Total Sales
MSEDCL
FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Projected Projected Projected Projected Projected
140
21,583
6,360
886
31,374
2,132
5,265
2,383
24
5
2
154
22,120
6,900
932
32,185
2,217
5,475
2,610
24
5
2
169
22,674
7,491
981
33,028
2,306
5,694
2,863
24
5
2
186
23,242
8,141
1,033
33,904
2,398
5,922
3,145
24
6
2
205
23,827
8,854
1,088
34,816
2,494
6,159
3,458
24
6
2
569
0.23
70,722
1,11,241
609
0.23
73,233
1,15,476
652
0.23
75,889
1,19,954
698
0.23
78,701
1,24,694
748
0.23
81,682
1,29,719
January 20
-5-
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
2. Power Purchase
Considering the sales projections, MSEDCL has projected the power purchase
for the period FY 2020-21 to FY 2024-25 based on the availability, operational
parameters; expected commissioning of upcoming projects, decommissioning
of old generating units in the period FY 2020-21 to FY 2024-25 and projected
the power purchase cost based on MYT Petition filed by MSPGCL and merit
order principles (MoD) for optimum utilization. The source-wise power purchase
projection for the period FY 2020-21 to FY 2024-25 is summarised below:
Particulars
MSPGCL
NTPC
NPCIL
SSP
Pench
Dodson
JSW
CGPL (Mundra UMPP)
Adani Power
EMCO Power
Rattan India
Renewable
PGCIL Charges
Total Power Purchase
Quantum
MU
55,307.12
25,598.81
4,884.58
1,209.94
136.50
115.72
1,913.18
5,157.89
20,937.22
1,355.17
20,272.00
1,36,888.13
FY 2020-21
Cost
Rs. Cr.
24,806.74
9,815.06
1,396.92
248.05
27.98
17.78
692.67
1,515.68
7,869.57
613.16
692.48
9,862.29
3,676.18
61,234.57
Rate
Quantum
Rs/Unit
MU
4.49
55,262.53
3.83
26,667.17
2.86
4,884.58
2.05
1,209.94
2.05
136.50
1.54
115.72
3.62
1,913.18
2.94
5,157.89
3.76
20,784.14
4.52
1,355.17
4.86
24,164.00
4.47 1,41,650.83
FY 2021-22
Cost
Rs. Cr.
25,654.11
10,389.47
1,430.57
248.06
27.98
17.92
731.78
1,568.26
7,962.99
650.26
692.48
10,660.92
3,859.99
63,894.79
Rate
Quantum
Rs/Unit
MU
4.64
55,144.56
3.90
26,742.79
2.93
4,884.58
2.05
1,209.94
2.05
136.50
1.55
115.72
3.82
810.03
3.04
5,157.89
3.83
20,937.22
4.80
1,355.17
4.41
30,151.00
4.51 1,46,645.40
FY 2022-23
Cost
Rs. Cr.
26,397.72
10,611.73
1,465.12
248.06
27.98
18.11
417.68
1,623.54
8,254.69
679.87
692.48
12,965.83
4,052.99
67,455.81
Rate
Rs/Unit
4.79
3.97
3.00
2.05
2.05
1.57
5.16
3.15
3.94
5.02
4.30
4.60
EMCO Rate will reduce after shifting connectivity from CTU to STU.
Particulars
MSPGCL
NTPC
NPCIL
SSP
Pench
Dodson
JSW
CGPL (Mundra UMPP)
Adani Power
EMCO Power
Rattan India
Renewable
PGCIL Charges
Total Power Purchase
Quantum
MU
55,908.76
27,610.48
4,897.96
1,213.26
136.87
116.04
736.28
5,172.02
20,917.77
1,358.88
33,882.00
1,51,950.32
FY 2023-24
Cost
Rs. Cr.
27,636.92
11,094.73
1,504.72
248.75
28.06
27.68
410.60
1,684.98
8,265.39
712.34
692.48
14,355.53
4,255.64
70,917.81
Rate
Rs/Unit
4.94
4.02
3.07
2.05
2.05
2.39
5.58
3.26
3.95
5.24
4.24
4.67
Quantum
MU
57,779.78
28,847.51
4,884.58
1,209.94
136.50
115.72
413.29
5,157.89
20,937.22
1,355.17
142.19
36,593.00
1,57,572.78
FY 2024-25
Cost
Rs. Cr.
28,717.14
11,759.78
1,537.05
248.07
27.98
32.93
334.63
1,742.82
8,050.30
744.72
748.55
15,405.57
4,468.42
73,817.97
Rate
Rs/Unit
4.97
4.08
3.15
2.05
2.05
2.85
8.10
3.38
3.84
5.50
4.21
4.68
EMCO Rate will reduce after shifting connectivity from CTU to STU.
MSEDCL
January 20
-6-
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
3. Distribution Losses
MSEDCL has achieved a significant reduction in distribution losses during
recent years. Accordingly, MSEDCL has projected the Distribution Loss
trajectory for the 4th Control Period considering year on year 0.25% reduction
as given below:
Particulars
Distribution Losses
(Excluding EHV)
FY 2020-21
Projected
FY 2021-22
Projected
FY 2022-23
Projected
FY 2023-24
Projected
FY 2024-25
Projected
13.01%
12.76%
12.51%
12.26%
12.01%
4. Segregation of Wires and Supply Business
The Regulation 71 of MERC (Multi Year Tariff) Regulations, 2019 mentions
about apportioning of Aggregate Revenue Requirement between the
Distribution Wires Business and Retail Supply Business.
MSEDCL has segregated the expenses based on the allocation matrix as
provided in the regulations.
5. Aggregate Revenue Requirement (ARR) for the period FY 2020-2021 to FY
2024-2025
Aggregate Revenue Requirement of MSEDCL for the period FY 2020-21 to FY
2024-25 is projected considering projections for various components of ARR
and provisions of MERC MYT Regulations, 2019. Also, the Revenue has been
considered based on the existing tariff and accordingly the year wise revenue
gap has been calculated as summarised in following table.
MSEDCL
January 20
-7-
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
Particulars
Power Purchase Expenses
Operation & Maintenance Expenses
Depreciation Expenses
Interest on Loan Capital
Interest on Working Capital
Interest on Consumers Security Deposit
Provision for bad and doubtful debts
Other Expenses
Intra-State Transmission Charges MSLDC charge
Incentives/Discounts
Contribution to Contingency Reserves
Opex Scheme
Return on Equity Capital
Add: Impact of payment to MPECS in future years
Aggregate Revenue Requirement
Revenue from Sale of Power
Non-Tariff Income
Income from Open Access Charges
Income from Additional Surcharge
Total Revenue
Revenue Gap/(Surplus)
FY 2020-21
Projected
61,234.57
6,978.91
2,756.88
1,407.20
130.10
540.58
891.59
52.58
10,293.78
322.38
159.27
117.21
1,735.95
37.16
86,658.16
76,997.55
379.75
388.89
108.44
77,874.63
8,783.54
FY 2021-22
Projected
63,894.79
7,246.35
2,966.30
1,463.59
139.50
567.61
941.10
55.21
6,352.56
338.50
176.64
117.40
1,806.60
34.15
86,100.30
79,927.39
398.73
388.89
108.44
80,823.46
5,276.84
FY 2022-23
Projected
67,455.81
7,524.04
3,155.21
1,357.48
145.20
595.99
994.24
57.97
6,715.36
355.43
189.60
117.62
1,867.86
31.14
90,562.95
83,017.87
418.67
388.89
108.44
83,933.87
6,629.08
FY 2023-24
Projected
70,917.81
7,812.38
3,221.66
1,112.36
145.16
625.79
1,051.34
60.87
7,344.34
373.20
199.32
117.88
1,916.55
28.13
94,926.77
86,309.90
439.60
388.89
108.44
87,246.84
7,679.93
Rs. Cr.
FY 2024-25
Projected
73,817.97
8,111.76
3,280.93
856.88
144.64
657.08
1,112.72
63.91
7,999.76
391.86
208.02
118.17
1,962.93
21.14
98,747.77
89,801.46
461.59
388.89
108.44
90,760.38
7,987.39
F. Additional Claims
Hon’ble Commission in Order dated 24th December 2018 in case no. 321 of 2018
on review petition of MSEDCL on the MTR Order dated 12th Sept 2018 has
approved certain costs for capital expenditure for the past years and restated the
GFA for the respective period. MSEDCL has now claimed the impact of
reinstatement of GFA In addition to this, MSEDCL has also claimed the costs
allowed by Hon’ble Commission due to certain error apparent in the said order as
provided below:
Particulars
Impact of reinstatement of GFA
Inpact of Review order
Total
Amount
(Rs. Crs)
606.55
216.68
823.22
G. Impact of Change in Law
Supreme Court in the Energy Watchdog matter in Civil Appeal No. 5399-5400 vide
its Judgement dated 11.04.2017 ruled that NCDP 2013 is a ”Change in Law’ and
further elaborated that the party affected due to the Change in law be restituted to
its’ same economical position. In line with this Judgement, Hon’ble Commission
has issued various Orders in respect of M/s. APML for approval of various claims
MSEDCL
January 20
-8-
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
under change in Law. Hon’ble Commission in these orders has allowed NCDP
policy, SHAKTI policy, Cancellation of Lohara Coal Block as a Change in Law and
has allowed relief to M/s. APML for past period from year 2013. In line with the
Hon'ble Supreme Court order for Rajasthan Discoms to make payment of 50% of
claim and considering the already paid amount of Rs.2266 Crore, MSEDCL is liable
to pay amount of Rs. 4192 Crore to avoid the carrying cost impact and contempt
of Court Order. Accordingly, the said amount of Rs. 4192 Crore to be paid is added
to the revenue gap for the Control Period. MSEDCL also submits that the Appeals
against above Orders on different grounds are pending at Appellate Authority and
whenever above Appeals get finality in the respective courts and the Court issues
Orders in the above matter of change in law for NCDP policy, SHAKTI policy,
Cancellation of Lohara Coal Block, etc., MSEDCL shall pass on or recover such
impact through FAC mechanism from consumers. Similarly, CERC issued Order
on 16.05.2019 and has allowed claims to GMR Warora in respect of NCDP Policy
considering SHR as per CERC Regulations and GCV on as received basis and
MSEDCL has made payment of Rs. 81.34 Crores (i.e. 50 % of claim) to GMR as
per the APTEL Judgment.
H. Liquidation of Regulatory Assets
MSEDCL submits that the Hon’ble Commission in its MTR Order approved total
revenue gap of Rs. 20,651 Crs. However, recovery of only Rs. 8,268 Crs was
allowed over a period of two years. Hon’ble Commission created Regulatory
Assets of Rs. 12,382 Crs. Accordingly, MSEDCL has considered the recovery of
Regulatory Assets along with its Carrying Cost.
I. Carrying Cost
Hon’ble Commission has been allowing carrying cost/holding cost on the revenue
gap/surplus respectively. Also Hon’ble Commission in the MTR order in Case
no.195 of 2017 dated 12th September 2018 has created Regulatory assets and
has allowed the recovery of the same with carrying costs. Accordingly MSEDCL
has computed carrying cost on previous regulatory assets, unrecovered gaps,
impact of the review order and impact of reinstatement of GFA.
J. Net recovery required from tariff
Considering the revenue gap for FY 2017-18 to FY 2019-20, impact of order on
MSEDCL
January 20
-9-
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
Review Petition (Case No 321 of 2018), impact of revised GFA, Regulatory Asset,
carrying cost, along with the revenue gap projected for the period FY 2020-21 to
FY 2024-25, the net recovery required from tariff works out to be Rs. 60,313.11
Cr. as shown in the following table.
Particulars
Final True Up Requirement for FY17-18
Final True Up Requirement for FY 18-19
Provisional True Up Requirement for FY 19-20
Projected Revenue Gap for FY 20-21
Projected Revenue Gap for FY 21-22
Projected Revenue Gap for FY 22-23
Projected Revenue Gap for FY 23-24
Projected Revenue Gap for FY 24-25
Impact of Review Order on MTR Order
Impact of Reinstatement of GFA of Rs. 927 Crs
Carrying Cost for previous gaps/impact and unrecovered
gaps during Control Period
Total Revenue Gap for the MYT Period
Impact of Change in Law
Regulatory Assets
Carrying Cost on Regulatory Assets upto Mar-20
Recovery for Regulatory Assets
Total Recovery
Incremental Revenue from Cross Subsidy Surcharge
Incremental Revenue from Additional Surcharge
Net recovery from Tariff
Amount
Rs. Cr
(1,677.05)
2,835.21
2,288.19
8,783.54
5,276.84
6,629.08
7,679.93
7,987.39
216.68
606.55
5,850.30
46,476.66
4,192.00
1,176.33
12,382.45
64,227.44
(1,129.33)
(2,785.00)
60,313.11
K. Tariff Design
There is an urgent need for ensuring recovery of full cost of service from consumers
to sustain the operations of the Company. Hon’ble Commission has been guided
by the Electricity Act, 2003 and the National Tariff Policy while determining retail
tariffs. Hon’ble Commission has always laid emphasis on parameters which
encourages economy, efficiency, effective performance and improved supply
conditions of supply for consumers. MSEDCL requests the Hon’ble Commission to
apply similar principles considering the ground realities as well as to ensure the
financial viability of the Company.
MSEDCL
January 20
- 10 -
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
The tariff design proposed by MSEDCL is based on the following principles:
 Rationalisation of Fixed Charges to ensure appropriate recovery of fixed
costs through fixed charges;
 Revision in Billing Demand definition for appropriate recovery of Contract
Demand expenses;


kVAh based billing for HT Category consumers;
Revision in Load Factor Formula for more clarity;

Rebate for Incremental Consumption for HT Industrial, Commercial, Public
services & railways to incentivise the additional sales;


Grid Support Charges for Rooftop Net Metering Systems;
Additional Fixed/Demand Charges for Rooftop RE Systems not opting for
Net Metering or Net Billing Arrangement;



Revision in Standby Charges for CPP;
Revision in ToD Charges in view of the solar capacity addition;
Introduction of Harmonics Penalty for HT industrial & Commercial category
for power quality improvement;

Revision in Schedule of charges;

Provision of mandatory standby arrangement for SEZ and railways;

Recovery of Cross Subsidy Surcharge as per NTP formula without any
ceiling from Open Access consumers;

Applicability of Additional Surcharge extended to all OA consumers
including those sourcing power from CPP;
L. Rationale for Tariff revision
MSEDCL has proposed a revision in fixed and energy charges for various
categories in order to bridge revenue gap. The tariff revision is necessary for
meeting additional costs due to increase in generation & transmission costs,
regulatory assets and legitimate expenses of MSEDCL. The revenue gap has
emerged due to additional costs, which are beyond the control of MSEDCL.
M. Cross-Subsidy Surcharge (CSS)
Section 2 (47) of the Electricity Act defines “Open Access’, while Section 42 of the
said Act inter – alia mandates the Distribution Licensee to provide Open Access to
eligible consumers, subject to payment of “Cross Subsidy Surcharge”, “Additional
MSEDCL
January 20
- 11 -
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
Surcharge” & other applicable charges.
As per the provisions of Section 42(2) of the Electricity Act 2003, the CSS needs
to be based on the current levels of cross subsidy. Accordingly, the consumers
who opted for Open Access need to be charged for the compensation of current
level of Cross Subsidy, which prevailed during that period and in order to avoid the
burden of the same being passed on other consumers who are with the Distribution
Licensee.
Accordingly, MSEDCL has determined the cross subsidy surcharge based on the
Tariff Policy formula without putting any ceiling. A representative Cross Subsidy
Surcharge for HT Industrial Category is tabulated below:
Consumer Category
HT I HT - Industry
HT
EHV
FY 2020-21
Rs/kVAh
FY 2021-22
Rs/kVAh
2.57
2.83
FY 2022-23
Rs/kVAh
3.09
3.35
3.19
3.45
FY 2023-24
Rs/kVAh
FY 2024-25
Rs/kVAh
3.31
3.57
3.46
3.71
N. Wheeling Charges
Considering the provisions of MYT Regulations 2019, MSEDCL has proposed the
Wheeling charges for HT (excluding EHV) and LT voltage levels as per the table
given below:
Particulars
Units
HT (Excl EHV)
Rs./kVAh
LT Level
Rs./kWh
FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
0.77
0.78
0.78
0.77
0.75
1.15
1.17
1.17
1.14
1.11
For the purpose of commercial settlement, MSEDCL proposes to continue
following Wheeling Losses which are already approved in previous Tariff Orders.
Particulars
33 kV
22 kV
11 kV
LT
MSEDCL
Wheeling Losses
6.00%
7.50%
9.00%
12.00%
January 20
- 12 -
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
O. Additional Surcharge
Section 42(4) provides for the levy of Additional Surcharge to a consumer who
receives supply of electricity from a person other than the distribution licensee of
his area of supply. Regulation 14.8 of the MERC Distribution OA Regulations, 2016
outlines the principles for determination and levy of Additional Surcharge.
MSEDCL has proposed Additional Surcharge for Open Access Consumers
irrespective of Source i.e. Captive Power Plants, IPP, RE based power plants etc.
in addition to the conventional open access consumers. CPPs existing prior to
FY15-16, originally set up the plant for self-consumption and still continuing the
same arrangement of captive use, shall be exempted from applicability of
additional surcharge.
Particulars
FY 2020-21
Proposed Additional
Surcharge (Rs/kVAh)
FY 2021-22
1.33
FY 2022-23 FY 2023-24 FY 2024-25
1.37
1.40
1.43
1.42
P. Grid Support Charges for Net Metering Systems
As per MERC Grid Interactive Rooftop Renewable Energy Generating Systems
Regulations, 2019, MSEDCL has proposed the Grid support charges for Net
Metering Systems for the Control Period. A representative Grid Support Charge for
HT Industrial Category is tabulated below:
Category
HT I HT - Industry
HT
EHV
FY 2020-21
Rs./kVAh
4.08
3.60
FY 2021-22
Rs./kVAh
FY 2022-23
Rs./kVAh
4.07
3.59
4.05
3.57
FY 2023-24
Rs./kVAh
4.03
3.57
FY 2024-25
Rs./kVAh
3.96
3.52
The Grid Support Charges for Rooftop Net Metering Arrangements shall vary
depending on approval of any cost component that affects MSEDCL’s tariff,
prevailing REC Rates etc. The RPO benefits shall be adjusted at the year-end i.e.
at the time of settlement of banked units and after assessment of REC requirement,
as per the actual monthly REC Rates and consumption by consumer during the
respective month.
MSEDCL
January 20
- 13 -
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
Net Metering Regulations 2019 provides that the consumers having Sanctioned
Load up to 10 kW shall be exempted from payment of Grid Support Charges for
Net Metering systems. Such loss for exemption from paying the Grid Support
Charges needs to be recovered from the consumers having Sanctioned Load
above 10 kW so as to avoid the burden on consumers not opting for Net Metering.
Q. Additional Fixed/Demand Charges for Rooftop Solar Systems not opting for
Net Metering or Net Billing Arrangement
As per MERC Grid Interactive Rooftop Renewable Energy Generating Systems
Regulations, 2019, MSEDCL has proposed the Additional Fixed/Demand Charges
for the Control Period.
Particulars
Actual FC Recovery Required (Rs/Unit)
Monthly units generated by 1 kw rooftop SPV
(CUF-19%)
Fixed Charges to be recovered (Rs./kW/Month)
FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
4.23
3.86
3.83
3.81
3.73
138.7
645
138.7
589
138.7
584
138.7
581
138.7
568
In addition to the above, the subsidising consumers shall pay Cross Subsidy
Surcharge as proposed by MSEDCL for the respective year of the Control Period
for compensating the common consumers of MSEDCL for the current level cross
subsidy.
R. Tariff Applicability
Every consumer of electricity has a unique applicability of tariff, depending upon
the nature of power supply, purpose of power usage etc. which determines the
class of consumer or category of the consumer. The Hon’ble Commission has
accordingly classified the consumers of electricity into various categories
depending upon the nature of power supply i.e. (Low Tension or High Tension),
purpose of power/type of usage i.e. (Domestic, Non-domestic, Industrial,
Agricultural, etc.)
MSEDCL has examined the tariff applicability and based on the feedback received
during interactions with field officers, MSEDCL has proposed certain modifications
in applicability of tariff.
MSEDCL
January 20
- 14 -
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
S. Tariff Schedule
In MYT Regulations, the Hon’ble Commission has merged various HT voltage
levels (11kV, 22kV etc.) into one and has kept only two categories. (HT and EHV).
Accordingly MSEDCL has proposed tariffs for HT and EHV category. Further, in
order to rationalise tariff categories, MSEDCL has proposed the following changes:
•
•
•
•
Merged sub slabs in 0-20 kVA slab for Commercial and Public Services;
kVA based demand charges for loads less than 20kW;
Merging of 500-1000 units & above 1000 units slab into a slab of 500 units and
above for Residential category;
Slab wise fixed charges for Residential category consumers.
A comparison of detailed Category/Sub-category wise Existing and Proposed
Energy Charges (excl. Wheeling Charges) is shown in tables below:
MSEDCL
January 20
- 15 -
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
Comparison of Existing and Proposed Energy Charges (excl. Wheeling Charges) for HT Category (1/2)
Particulars
HT I HT - Industry
HT
EHV
HT I (B): HT - Industry (Seasonal)
HT
EHV
HT II: HT – Commercial
HT
EHV
HT III : HT - Railways/Metro/Monorail Traction
HT
EHV
HT IV: HT - Public Water Works
HT
EHV
HT V(A): HT - Agriculture Pumpsets
HT
EHV
HT V(B): HT - Agriculture - Others
HT
EHV
HT VI: HT - Group Housing Societies (Residential)
HT
EHV
HT VIII(A): HT - Temporary Supply Religious (TSR)
HT
EHV
HT VIII(B): HT - Temporary Supply Others (TSO)
HT
EHV
HT IX: HT - Public Services
HT IX(A): HT - Public Services-Govt.
HT
EHV
HT IX(B): HT - Public Services-Others
HT
EHV
HT X: HT – Electric Vehicle Charging Station
HT
EHV
MSEDCL
FY 2020-21
Energy Charges (Rs/Unit)
% Change over
Existing
Proposed
FY 2019-20
Approved
FY 2021-22
Energy Charges (Rs/Unit)
% Change over
Proposed
FY 2020-21
Proposed
7.07
7.07
7.11
7.11
1%
1%
7.20
7.20
1%
1%
7.34
7.34
7.40
7.40
1%
1%
7.50
7.50
1%
1%
11.73
11.73
11.70
11.70
0%
0%
11.70
11.70
0%
0%
7.00
7.00
7.20
7.20
3%
3%
7.40
7.40
3%
3%
6.30
6.30
6.50
6.50
3%
3%
6.70
6.70
3%
3%
3.77
3.77
3.90
3.90
3%
3%
4.00
4.00
3%
3%
5.20
5.20
5.40
5.40
4%
4%
5.60
5.60
4%
4%
5.82
5.82
6.00
6.00
3%
3%
6.20
6.20
3%
3%
3.75
3.75
3.90
3.90
4%
4%
4.00
4.00
3%
3%
12.00
12.00
12.40
12.40
3%
3%
12.80
12.80
3%
3%
7.90
7.90
8.00
8.00
1%
1%
8.10
8.10
1%
1%
9.70
9.70
9.90
9.90
2%
2%
10.00
10.00
1%
1%
5.24
5.24
5.40
5.40
3%
3%
5.60
5.60
4%
4%
January 20
- 16 -
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
Comparison of Existing and Proposed Energy Charges (excl. Wheeling Charges) for HT Category (2/2)
Particulars
HT I HT - Industry
HT
EHV
HT I (B): HT - Industry (Seasonal)
HT
EHV
HT II: HT – Commercial
HT
EHV
HT III : HT - Railways/Metro/Monorail Traction
HT
EHV
HT IV: HT - Public Water Works
HT
EHV
HT V(A): HT - Agriculture Pumpsets
HT
EHV
HT V(B): HT - Agriculture - Others
HT
EHV
HT VI: HT - Group Housing Societies (Residential)
HT
EHV
HT VIII(A): HT - Temporary Supply Religious (TSR)
HT
EHV
HT VIII(B): HT - Temporary Supply Others (TSO)
HT
EHV
HT IX: HT - Public Services
HT IX(A): HT - Public Services-Govt.
HT
EHV
HT IX(B): HT - Public Services-Others
HT
EHV
HT X: HT – Electric Vehicle Charging Station
HT
EHV
MSEDCL
FY 2022-23
Energy Charges (Rs/Unit)
% Change over
Proposed
FY 2021-22
Proposed
FY 2023-24
Energy Charges (Rs/Unit)
% Change over
Proposed
FY 2022-23
Proposed
FY 2024-25
Energy Charges (Rs/Unit)
% Change over
Proposed
FY 2023-24
Proposed
7.30
7.30
1%
1%
7.40
7.40
1%
1%
7.47
7.47
1%
1%
7.60
7.60
1%
1%
7.70
7.70
1%
1%
7.80
7.80
1%
1%
11.70
11.70
0%
0%
11.70
11.70
0%
0%
11.70
11.70
0%
0%
7.60
7.60
3%
3%
7.80
7.80
3%
3%
8.00
8.00
3%
3%
6.90
6.90
3%
3%
7.10
7.10
3%
3%
7.30
7.30
3%
3%
4.10
4.10
2%
2%
4.20
4.20
2%
2%
4.30
4.30
2%
2%
5.80
5.80
4%
4%
6.00
6.00
3%
3%
6.20
6.20
3%
3%
6.40
6.40
3%
3%
6.60
6.60
3%
3%
6.80
6.80
3%
3%
4.10
4.10
2%
2%
4.20
4.20
2%
2%
4.30
4.30
2%
2%
13.20
13.20
3%
3%
13.60
13.60
3%
3%
14.00
14.00
3%
3%
8.20
8.20
1%
1%
8.30
8.30
1%
1%
8.40
8.40
1%
1%
10.10
10.10
1%
1%
10.20
10.20
1%
1%
10.30
10.30
1%
1%
5.80
5.80
4%
4%
6.00
6.00
3%
3%
6.20
6.20
3%
3%
January 20
- 17 -
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
Comparison of Existing and Proposed Energy Charges (excl. Wheeling Charges) for LT Category (1/4)
Particulars
LT Residential
LT I(A): LT - Residential-BPL
LT I(B): LT - Residential
1-100 units
101-300 units
301-500 units
>500 units
LT II: LT - Non-Residential
(A1) (i): 0 – 20 kVA (Upto 200 units per month)
(A1) (ii): 0 – 20 kVA (Above 200 units per month)
(A1) (iii) 0-20 kVA (Single phase)
(B): >20 kVA and ≤ 50 kVA
(C): >50 KVA
LT III: LT - Public Water Works (PWW)
(A): 0-20 KVA
(B): >20 kVA and ≤ 40 kVA
(C): >40 KVA
LT IV: LT - Agriculture
LT IV(A): LT - AG Un-metered - Pumpsets
Category 1 Zones (Above 1318 Hrs/HP/Annum)
(a) 0-5 HP
(b) Above 5 HP - 7.5 HP
(c) Above 7.5 HP
Category 2 Zones (Below 1318 Hrs/HP/Annum)
(a) 0-5 HP
(b) Above 5 HP - 7.5 HP
(c) Above 7.5 HP
LT IV(B): LT - Agriculture Metered Tariff - Pumpsets
LT IV(C): LT - Agriculture Metered – Others
MSEDCL
FY 2020-21
Energy Charges (Rs/unit)
% Change over
Existing
Proposed
FY 2019-20
Approved
1.10
1.36
3.05
6.95
9.90
11.50
3.30
7.30
9.90
11.50
24%
8%
5%
0%
0%
FY 2021-22
Energy Charges (Rs/unit)
% Change over
Proposed
FY 2020-21
Proposed
1.40
3%
3.50
7.50
9.90
11.50
6%
3%
0%
0%
8.10
3%
6.10
9.25
6.10-9.25
9.30
11.60
7.90
9.50
11.60
2%
0%
8.10
9.80
11.80
3%
3%
2%
2.15
3.50
4.80
2.30
3.60
4.90
7%
3%
2%
2.40
3.70
5.00
4%
3%
2%
7.90
Rs./HP/Month
Rs./HP/Month
374
403
452
400
430
480
7%
7%
6%
420
455
505
5%
6%
5%
288
316
366
2.09
3.51
310
335
390
2.20
3.70
8%
6%
7%
5%
5%
330
355
410
2.30
3.80
6%
6%
5%
5%
3%
January 20
- 18 -
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
Comparison of Existing and Proposed Energy Charges (excl. Wheeling Charges) for LT Category (2/4)
FY 2022-23
Energy Charges (Rs/unit)
% Change over
Proposed
FY 2021-22
Proposed
Particulars
LT Residential
LT I(A): LT - Residential-BPL
LT I(B): LT - Residential
1-100 units
101-300 units
301-500 units
>500 units
LT II: LT - Non-Residential
(A1) (i): 0 – 20 kVA (Upto 200 units per month)
(A1) (ii): 0 – 20 kVA (Above 200 units per month)
(A1) (iii) 0-20 kVA (Single phase)
(B): >20 kVA and ≤ 50 kVA
(C): >50 KVA
LT III: LT - Public Water Works (PWW)
(A): 0-20 KVA
(B): >20 kVA and ≤ 40 kVA
(C): >40 KVA
LT IV: LT - Agriculture
LT IV(A): LT - AG Un-metered - Pumpsets
Category 1 Zones (Above 1318 Hrs/HP/Annum)
(a) 0-5 HP
(b) Above 5 HP - 7.5 HP
(c) Above 7.5 HP
Category 2 Zones (Below 1318 Hrs/HP/Annum)
(a) 0-5 HP
(b) Above 5 HP - 7.5 HP
(c) Above 7.5 HP
LT IV(B): LT - Agriculture Metered Tariff - Pumpsets
LT IV(C): LT - Agriculture Metered – Others
MSEDCL
FY 2023-24
Energy Charges (Rs/unit)
% Change over
Proposed
FY 2022-23
Proposed
FY 2024-25
Energy Charges (Rs/unit)
% Change over
Proposed
FY 2023-24
Proposed
1.50
7%
1.60
7%
1.70
6%
3.70
7.70
9.90
11.50
6%
3%
0%
0%
3.90
7.90
9.90
11.60
5%
3%
0%
1%
4.10
8.10
9.90
11.70
5%
3%
0%
1%
8.30
2%
8.50
2%
8.70
2%
8.30
10.10
12.00
2%
3%
2%
8.50
10.40
12.10
2%
3%
1%
8.70
10.70
12.20
2%
3%
1%
2.50
3.80
5.20
4%
3%
4%
2.60
3.90
5.40
4%
3%
4%
2.70
4.00
5.60
4%
3%
4%
Rs./HP/Month
Rs./HP/Month
Rs./HP/Month
445
480
535
6%
5%
6%
470
505
565
6%
5%
6%
495
535
595
5%
6%
5%
350
375
435
2.40
4.00
6%
6%
6%
4%
5%
370
395
460
2.50
4.20
6%
5%
6%
4%
5%
390
415
485
2.60
4.40
5%
5%
5%
4%
5%
January 20
- 19 -
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
Comparison of Existing and Proposed Energy Charges (excl. Wheeling Charges) for LT Category (3/4)
Particulars
LT V (A): LT - Industry - Powerlooms
(i): 0-20 KVA
(ii): Above 20 KVA
(iii) 0-20 kVA (Single phase)
LT V(B): LT - Industry - General
(i): 0-20 KVA
(ii): Above 20 KVA
(iii) 0-20 kVA (Single phase)
LT VI: LT - Street Light
(A): Grampanchayat; A B & C Class Municipal Council
(B): Municipal corporation Area
LT VII: LT - Temporary Connection
(A): LT - Temporary Supply Religious (TSR)
(B): LT - Temporary Supply Others (TSO)
LT VIII: LT - Advertisements and Hoardings
LT IX: LT - Crematorium and Burial Grounds
LT X (A) - Public Services – Govt.
(i): ≤ 20 kVA Upto 200 units)
(i): ≤ 20 kVA (Above 200 units)
(ia) ≤ 20 kVA (Single phase)
(ii): >20 - ≤ 50 kVA
iii): >50 kVA
LT X(B) - Public Services - Others
(i): ≤ 20 kVA Upto 200 units)
(i): ≤ 20 kVA (Above 200 units)
(ia) ≤ 20 kVA (Single phase)
(ii): >20 - ≤ 50 kVA
(iii): >50 kVA
LT XI – Electric Vehicle Charging Station
MSEDCL
FY 2020-21
Energy Charges (Rs/unit)
% Change over
Existing
Proposed
FY 2019-20
Approved
FY 2021-22
Energy Charges (Rs/unit)
% Change over
Proposed
FY 2020-21
Proposed
4.69
6.02
4.69
4.90
6.30
4.90
4%
5%
4%
5.10
6.40
5.10
4%
2%
4%
4.81
5.70
4.81
5.00
5.90
5.00
4%
4%
4%
5.30
6.20
5.30
6%
5%
6%
4.80
5.85
4.90
6.00
2%
3%
5.00
6.20
2%
3%
3.27
12.79
12.00
3.26
3.40
13.20
12.40
3.40
4%
3%
3%
4%
3.50
13.60
12.80
3.50
3%
3%
3%
3%
3.90
5%
3.90
4.70
6.00
5%
4%
5%
5.80
6.10
5%
5.80
7.10
7.60
5.00
6.10
7.50
8.00
5.30
5%
6%
5%
6%
3.00
4.20
3.00-4.20
4.30
5.40
4.25
6.90
4.25-6.90
6.80
7.20
4.72
January 20
3.70
3.70
4.50
5.70
5%
6%
4%
6%
6%
- 20 -
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
Comparison of Existing and Proposed Energy Charges (excl. Wheeling Charges) for LT Category (4/4)
Particulars
LT V (A): LT - Industry - Powerlooms
(i): 0-20 KVA
(ii): Above 20 KVA
(iii) 0-20 kVA (Single phase)
LT V(B): LT - Industry - General
(i): 0-20 KVA
(ii): Above 20 KVA
(iii) 0-20 kVA (Single phase)
LT VI: LT - Street Light
(A): Grampanchayat; A B & C Class Municipal Council
(B): Municipal corporation Area
LT VII: LT - Temporary Connection
(A): LT - Temporary Supply Religious (TSR)
(B): LT - Temporary Supply Others (TSO)
LT VIII: LT - Advertisements and Hoardings
LT IX: LT - Crematorium and Burial Grounds
LT X (A) - Public Services – Govt.
(i): ≤ 20 kVA *Upto 200 units)
(i): ≤ 20 kVA (Above 200 units)
(ia) ≤ 20 kVA (Single phase)
(ii): >20 - ≤ 50 kVA
iii): >50 kVA
LT X(B) - Public Services - Others
(i): ≤ 20 kVA Upto 200 units)
(i): ≤ 20 kVA (Above 200 units)
(ia) ≤ 20 kVA (Single phase)
(ii): >20 - ≤ 50 kVA
(iii): >50 kVA
LT XI – Electric Vehicle Charging Station
MSEDCL
FY 2022-23
Energy Charges (Rs/unit)
% Change over
Proposed
FY 2021-22
Proposed
FY 2023-24
Energy Charges (Rs/unit)
% Change over
Proposed
FY 2022-23
Proposed
FY 2024-25
Energy Charges (Rs/unit)
% Change over
Proposed
FY 2023-24
Proposed
5.40
6.60
5.40
6%
3%
6%
5.70
6.80
5.70
6%
3%
6%
6.00
7.00
6.00
5%
3%
5%
5.60
6.50
5.60
6%
5%
6%
5.90
6.80
5.90
5%
5%
5%
6.20
7.10
6.20
5%
4%
5%
5.20
6.40
4%
3%
5.40
6.60
4%
3%
5.60
6.80
4%
3%
3.60
14.00
13.20
3.60
3%
3%
3%
3%
3.70
14.40
13.60
3.70
3%
3%
3%
3%
3.80
14.80
14.00
3.80
3%
3%
3%
3%
4.10
5%
4.30
5%
4.50
5%
4.10
4.90
6.30
5%
4%
5%
4.30
5.10
6.60
5%
4%
5%
4.50
5.40
6.90
5%
6%
5%
6.40
5%
6.70
5%
7.00
4%
6.40
7.90
8.40
5.60
5%
5%
5%
6%
6.70
8.30
8.80
5.90
5%
5%
5%
5%
7.00
8.70
9.20
6.20
4%
5%
5%
5%
January 20
- 21 -
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
Comparison of Existing and Proposed Fixed Charges for HT Category (1/2)
Particulars
HT I HT - Industry
HT, EHV
HT I (B): HT - Industry (Seasonal)
HT, EHV
HT II: HT – Commercial
HT, EHV
HT III : HT - Railways/Metro/Monorail Traction
HT, EHV
HT IV: HT - Public Water Works
HT, EHV
HT V(A): HT - Agriculture Pumpsets
HT, EHV
HT V(B): HT - Agriculture - Others
HT, EHV
HT VI: HT - Group Housing Societies (Residential)
HT, EHV
HT VIII(A): HT - Temporary Supply Religious (TSR)
HT, EHV
HT VIII(B): HT - Temporary Supply Others (TSO)
HT, EHV
HT IX: HT - Public Services
HT IX(A): HT - Public Services-Govt.
HT, EHV
HT IX(B): HT - Public Services-Others
HT, EHV
HT X: HT – Electric Vehicle Charging Station
HT, EHV
MSEDCL
FY 2020-21
Fixed Charges (Rs/kVA/mth)
% Change over
FY 2019-20
Proposed
Existing
Approved
FY 2021-22
Fixed Charges (Rs/kVA/mth)
% Change over
FY 2020-21
Proposed
Proposed
391
431
10%
475
10%
391
431
10%
464
8%
391
421
8%
453
8%
391
431
10%
464
8%
391
421
8%
453
8%
69
87
26%
94
8%
69
87
26%
94
8%
313
337
8%
363
8%
418
460
10%
495
8%
391
431
10%
464
8%
391
421
8%
453
8%
391
421
8%
453
8%
70
76
9%
82
8%
January 20
- 22 -
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
Comparison of Existing and Proposed Fixed Charges for HT Category (2/2)
Particulars
HT I HT - Industry
HT, EHV
HT I (B): HT - Industry (Seasonal)
HT, EHV
HT II: HT – Commercial
HT, EHV
HT III : HT - Railways/Metro/Monorail Traction
HT, EHV
HT IV: HT - Public Water Works
HT, EHV
HT V(A): HT - Agriculture Pumpsets
HT, EHV
HT V(B): HT - Agriculture - Others
HT, EHV
HT VI: HT - Group Housing Societies (Residential)
HT, EHV
HT VIII(A): HT - Temporary Supply Religious (TSR)
HT, EHV
HT VIII(B): HT - Temporary Supply Others (TSO)
HT, EHV
HT IX: HT - Public Services
HT IX(A): HT - Public Services-Govt.
HT, EHV
HT IX(B): HT - Public Services-Others
HT, EHV
HT X: HT – Electric Vehicle Charging Station
HT, EHV
MSEDCL
FY 2022-23
Fixed Charges (Rs/kVA/mth)
% Change over
Proposed
FY 2021-22
Proposed
FY 2023-24
Fixed Charges (Rs/kVA/mth)
% Change over
Proposed
FY 2022-23
Proposed
FY 2024-25
Fixed Charges (Rs/kVA/mth)
% Change over
Proposed
FY 2023-24
Proposed
523
10%
576
10%
634
10%
499
8%
537
8%
578
8%
487
8%
524
8%
564
8%
499
8%
537
8%
578
8%
487
8%
524
8%
564
8%
102
9%
110
8%
119
8%
102
9%
110
8%
119
8%
391
8%
421
8%
453
8%
533
8%
573
8%
616
8%
499
8%
537
8%
578
8%
487
8%
524
8%
564
8%
487
8%
524
8%
564
8%
89
9%
96
8%
104
8%
January 20
- 23 -
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
Comparison of Existing and Proposed Fixed Charges for LT Category (1/4)
Particulars
Units (Existing)
LT Residential
LT I(A): LT - Residential-BPL
LT I(B): LT - Residential
1-100 units
101-300 units
301-500 units
>500 units
Three Phase Charges
LT II: LT - Non-Residential
(A1) (i): 0 – 20 kVA (Upto 200 units per month)
(A1) (ii): 0 – 20 kVA (Above 200 units per month)
(A2) 0-20 kVA (Single phase)
(B): >20 kVA and ≤ 50 kVA
(C): >50 KVA
LT III: LT - Public Water Works (PWW)
(A): 0-20 kVA
(B): >20 kVA and ≤ 50 kVA
(C): >50 KVA
LT IV: LT - Agriculture
LT IV(B): LT - Agriculture Metered Tariff - Pumpsets
LT IV(C): LT - Agriculture Metered – Others
MSEDCL
Units
(Proposed)
Existing
FY 2020-21
Fixed Charges
% Change over
Proposed
FY 2019-20
Approved
FY 2021-22
Fixed Charges
% Change over
Proposed
FY 2020-21
Proposed
Rs/conn/mth
Rs/conn/mth
25
25
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
90
90
90
90
320
100
110
110
120
350
11%
22%
22%
33%
9%
105
116
116
132
382
5%
5%
5%
10%
9%
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
391
391
391
391
391
207
-
218
5%
411
411
411
5%
5%
5%
432
432
432
5%
5%
5%
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
97
117
146
102
123
154
5%
5%
5%
108
130
162
6%
6%
5%
Rs/HP/mth
Rs/kW/mth
Rs/HP/mth
Rs/kW/mth
40
108
42
114
5%
6%
45
120
7%
5%
January 20
0%
25
0%
- 24 -
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
Comparison of Existing and Proposed Fixed Charges for LT Category (2/4)
Particulars
LT Residential
LT I(A): LT - Residential-BPL
LT I(B): LT - Residential
1-100 units
101-300 units
301-500 units
>500 units
Three Phase Charges
LT II: LT - Non-Residential
(A1) (i): 0 – 20 kVA (Upto 200 units per month)
(A1) (ii): 0 – 20 kVA (Above 200 units per month)
(A2) 0-20 kVA (Single phase)
(B): >20 kVA and ≤ 50 kVA
(C): >50 KVA
LT III: LT - Public Water Works (PWW)
(A): 0-20 kVA
(B): >20 kVA and ≤ 50 kVA
(C): >50 KVA
LT IV: LT - Agriculture
LT IV(B): LT - Agriculture Metered Tariff - Pumpsets
LT IV(C): LT - Agriculture Metered – Others
MSEDCL
FY 2022-23
Fixed Charges
% Change over
Proposed
FY 2021-22
Proposed
FY 2023-24
Fixed Charges
% Change over
Proposed
FY 2022-23
Proposed
FY 2024-25
Fixed Charges
% Change over
Proposed
FY 2023-24
Proposed
Units (Existing)
Units
(Proposed)
Rs/conn/mth
Rs/conn/mth
25
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
111
122
122
146
417
6%
5%
5%
11%
9%
117
129
129
161
455
5%
6%
6%
10%
9%
123
136
136
178
497
5%
5%
5%
11%
9%
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
229
5%
241
5%
254
5%
454
454
454
5%
5%
5%
477
477
477
5%
5%
5%
501
501
501
5%
5%
5%
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
114
137
171
6%
5%
6%
120
144
180
5%
5%
5%
126
152
189
5%
6%
5%
Rs/HP/mth
Rs/kW/mth
Rs/HP/mth
Rs/kW/mth
48
126
7%
5%
51
133
6%
6%
54
140
6%
5%
January 20
0%
25
0%
25
0%
- 25 -
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
Comparison of Existing and Proposed Fixed Charges for LT Category (3/4)
Particulars
Units (Existing)
LT V (A): LT - Industry - Powerlooms
(i): 0-20 KVA
(ii): Above 20 KVA
(iii) 0-20 kVA (Single phase)
LT V(B): LT - Industry - General
(i): 0-20 KVA
(ii): Above 20 KVA
(iii) 0-20 kVA (Single phase)
LT VI: LT - Street Light
(A): Grampanchayat; A B & C Class Municipal Council
(B): Municipal corporation Area
LT VII: LT - Temporary Connection
(A): LT - Temporary Supply Religious (TSR)
(B): LT - Temporary Supply Others (TSO)
LT VIII: LT - Advertisements and Hoardings
LT IX: LT - Crematorium and Burial Grounds
LT X (A) - Public Services – Govt.
(i): ≤ 20 kVA (Upto 200 units)
(i): ≤ 20 kVA (Above 200 units)
(ia) 0-20 kVA (Single phase)
(ii): >20 - ≤ 50 kVA
iii): >50 kVA
LT X(B) - Public Services - Others
(i): ≤ 20 kVA (Upto 200 units)
(i): ≤ 20 kVA (Above 200 units)
(ia) 0-20 kVA (Single phase)
(ii): >20 - ≤ 50 kVA
iii): >50 kVA
LT XI – Electric Vehicle Charging Station
MSEDCL
Units
(Proposed)
FY 2020-21
Fixed Charges
Existing
Proposed
% Change over
FY 2019-20
Approved
FY 2021-22
Fixed Charges
% Change over
Proposed
FY 2020-21
Proposed
Rs/Conn/mth
Rs/kVA/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/Conn/mth
441
294
441
158
309
463
5%
5%
166
325
486
5%
5%
5%
Rs/Conn/mth
Rs/kVA/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/Conn/mth
441
294
441
158
309
463
5%
5%
166
325
486
5%
5%
5%
Rs/kW/mth
Rs/kW/mth
Rs/kW/mth
Rs/kW/mth
108
108
114
114
6%
6%
120
120
5%
5%
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
443
449
833
438
466
472
875
460
5%
5%
5%
5%
490
496
919
483
5%
5%
5%
5%
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
323
323
323
323
323
161
-
170
6%
340
340
340
5%
5%
5%
357
357
357
5%
5%
5%
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
351
351
351
351
351
70
252
-
265
5%
369
369
369
74
5%
5%
5%
6%
388
388
388
78
5%
5%
5%
5%
January 20
- 26 -
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
Comparison of Existing and Proposed Fixed Charges for LT Category (4/4)
Particulars
LT V (A): LT - Industry - Powerlooms
(i): 0-20 KVA
(ii): Above 20 KVA
(iii) 0-20 kVA (Single phase)
LT V(B): LT - Industry - General
(i): 0-20 KVA
(ii): Above 20 KVA
(iii) 0-20 kVA (Single phase)
LT VI: LT - Street Light
(A): Grampanchayat; A B & C Class Municipal Council
(B): Municipal corporation Area
LT VII: LT - Temporary Connection
(A): LT - Temporary Supply Religious (TSR)
(B): LT - Temporary Supply Others (TSO)
LT VIII: LT - Advertisements and Hoardings
LT IX: LT - Crematorium and Burial Grounds
LT X (A) - Public Services – Govt.
(i): ≤ 20 kVA (Upto 200 units)
(i): ≤ 20 kVA (Above 200 units)
(ia) 0-20 kVA (Single phase)
(ii): >20 - ≤ 50 kVA
iii): >50 kVA
LT X(B) - Public Services - Others
(i): ≤ 20 kVA (Upto 200 units)
(i): ≤ 20 kVA (Above 200 units)
(ia) 0-20 kVA (Single phase)
(ii): >20 - ≤ 50 kVA
iii): >50 kVA
LT XI – Electric Vehicle Charging Station
FY 2022-23
Fixed Charges
% Change over
Proposed
FY 2021-22
Proposed
FY 2023-24
Fixed Charges
% Change over
Proposed
FY 2022-23
Proposed
FY 2024-25
Fixed Charges
% Change over
Proposed
FY 2023-24
Proposed
Units (Existing)
Units
(Proposed)
Rs/Conn/mth
Rs/kVA/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/Conn/mth
175
342
510
5%
5%
5%
184
360
536
5%
5%
5%
194
378
563
5%
5%
5%
Rs/Conn/mth
Rs/kVA/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/Conn/mth
175
342
510
5%
5%
5%
184
360
536
5%
5%
5%
194
378
563
5%
5%
5%
Rs/kW/mth
Rs/kW/mth
Rs/kW/mth
Rs/kW/mth
126
126
5%
5%
133
133
6%
6%
140
140
5%
5%
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
515
521
965
508
5%
5%
5%
5%
541
548
1,014
534
5%
5%
5%
5%
569
576
1,065
561
5%
5%
5%
5%
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
179
5%
188
5%
198
5%
375
375
375
5%
5%
5%
394
394
394
5%
5%
5%
414
414
414
5%
5%
5%
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
279
5%
293
5%
308
5%
408
408
408
82
5%
5%
5%
5%
429
429
429
87
5%
5%
5%
6%
451
451
451
92
5%
5%
5%
6%
MSEDCL requests Hon’ble Commission to approve the tariff considering the Tariff Design principles and Other Suggestions made
by MSEDCL.
MSEDCL
January 20
- 27 -
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
T. Average Tariff Hike
Following table provides the average tariff hike for the Control Period.
Financial Year
Revenue at Existing Tariff (Rs. Crs)
Revenue at Proposed Tariff (Rs. Crs)
Revenue Recovery (Rs. Crs)
Sales (MU)
Average Cost of Supply (ACoS) (Rs/kWh)
% Increase/Decrease
Approved for
FY 19-20
69,086
74,179
5,093
1,08,369
6.85
FY 20-21
FY 21-22
FY 22-23
FY 23-24
FY 24-25
76,998
82,925
79,927
88,887
83,018
95,051
86,310
1,01,390
89,801
1,08,160
5,928
8,960
12,033
15,080
18,358
1,14,510
1,18,884
1,23,506
1,28,397
1,33,580
7.24
7.48
7.70
7.90
8.10
5.80%
3.25%
2.93%
2.61%
2.54%
U. Cross Subsidy Trajectory
MSEDCL submits that for certain categories such as HT Industrial, HT
Commercial, HT Public Services etc., there is a reducing trend in cross subsidy.
Further, for LT Residential, LT Public Services etc. there is increasing trend in
cross subsidy. However, considering the recovery of proposed revenue gap,
changes in tariff design and philosophy, there is a need to revise the tariff for
various categories. Accordingly, MSEDCL has proposed the tariffs to recover the
proposed revenue gap.
MSEDCL
January 20
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Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25
Category
HT I (A): HT - Industry
HT II: HT - Commercial
HT III: HT - Railways/Metro/Monorail Traction
HT IV: HT - Public Water Works (PWW)
HT V: HT - Agriculture Pumps
HT VI: HT - Group Housing Societies
HT VIII: HT - Temporary Supply
HT IX : HT - Public Services Govt
HT IX : HT - Public Services Others
HT Total
LT I: LT - Residential
LT II: LT - Non-Residential
LT III: LT - Public Water Works (PWW)
LT IV: LT - Agriculture Metered
LT V (A): LT - Industry - Power Looms
LT V (B): LT - Industry – General
LT VI: LT - Street Light
LT VIII: LT - Advertisements and Hoardings
LT IX: LT - Crematorium and Burial Grounds
LT X- Public Services Govt.
LT X- Public Services Others
LT Total
Projected
Projected
125%
211%
146%
113%
62%
116%
233%
148%
175%
126%
100%
158%
58%
51%
101%
122%
90%
282%
71%
98%
130%
85%
124%
207%
147%
114%
61%
118%
238%
148%
174%
124%
100%
157%
58%
51%
101%
123%
88%
285%
71%
99%
131%
86%
Projected
123%
203%
148%
114%
61%
120%
243%
148%
172%
123%
100%
155%
57%
51%
101%
125%
88%
289%
70%
99%
132%
86%
Projected
122%
200%
150%
115%
60%
123%
250%
149%
171%
122%
101%
154%
57%
51%
102%
127%
88%
294%
69%
99%
134%
87%
Projected
122%
197%
152%
115%
59%
125%
257%
150%
170%
121%
101%
152%
57%
51%
102%
128%
88%
299%
69%
100%
135%
87%
V. Prayers
MSEDCL most respectfully prays to the Hon’ble Commission:
1. To admit the MYT Petition as per the provisions of the MERC (MYT)
Regulations 2019 and consider present Petition for further proceedings before
Hon’ble Commission;
2. To approve the total recovery of Aggregate Revenue Requirement and revenue
gap for FY 2017-18 to FY 2024-25 along with other claims including Regulatory
Assets as proposed by MSEDCL;
3. To allow the carrying cost on the proposed recovery required during the control
period;
4. To approve mechanism for recovery of computed revenue gap along with
carrying cost and Tariff Schedule considering the Tariff Design principles and
other suggestions proposed by MSEDCL;
5. To allow to charge 60% of approved fixed charges for single shift HT Industrial
consumers as proposed by MSEDCL;
6. To allow the revision in definition of Billing Demand as proposed by MSEDCL;
MSEDCL
January 20
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Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
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Executive Summary
7. To allow kVAh based billing for HT category consumers;
8. To allow a rebate for incremental consumption to HT consumers of selected
categories as proposed by MSEDCL;
9. To consider the incentives/rebates proposed as part of ARR;
10. To rationalize the incentives and penalties as proposed by MSEDCL;
11. To approve the revision in Load Factor Formula as proposed by MSEDCL;
12. To approve the revision in the Load Factor Incentive with a ceiling of 7.50%;
13. To approve the revision in ToD Charges as proposed by MSEDCL;
14. To approve the levy of Grid Support charges on generated energy for Net
Metering systems as proposed by MSEDCL;
15. To approve the Additional Fixed/Demand Charges along with CSS for Grid
Connected Renewable Energy Generating Systems connected behind the
Consumer’s meter, and not opting for either Net Metering Arrangement or Net
Billing Arrangement as proposed by MSEDCL;
16. To approve the kVA based Fixed Charges for 3 phase consumers having loads
less than 20 kVA as proposed by MSEDCL;
17. To allow the levy of slab wise charges to LT three phase consumers based on
the actual demand recorded;
18. To allow MSEDCL to retain the transmission charges collected from partial
Open access consumers;
19. To approve levy of harmonics penalty through additional charge equivalent to
5% of Variable Charges (Wheeling Charges plus Energy Charges) for HT
Industrial and HT Commercial consumers;
20. To approve Cross Subsidy Surcharge and all such other charges including
wheeling charges and wheeling losses for Open Access consumers as
proposed for the Control Period;
21. To approve the Additional Surcharge for Open Access Consumers irrespective
of Source i.e. Captive Power Plants, IPP, RE based power plants etc. in
addition to the conventional open access consumers but exempting CPPs
existing prior to FY15-16, originally set up the plant for self-consumption and
still continuing the same arrangement of captive use as proposed by MSEDCL
22. To allow revision in standby charges for consumers having CPP;
23. To make provision for mandatory standby arrangement by SEZ and other
Deemed Licensees;
24. To allow the slab wise fixed charges for Residential category consumers as
MSEDCL
January 20
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Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Executive Summary
proposed by MSEDCL;
25. To approve the suggested categorization for different type of activities as
proposed by MSEDCL;
26. To approve the schedule of charges as proposed by MSEDCL;
27. To approve the CAPEX and Capitalisation as submitted by MSEDCL;
28. To approve the OPEX as proposed by MSEDCL;
29. To grant any other relief as the Hon'ble Commission may consider appropriate;
30. To 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;
31. To condone any error/omission and to give opportunity to rectify the same;
32. To permit MSEDCL to make further submissions, addition and alteration to this
Petition as may be necessary from time to time;
(Satish Chavan)
Director (Commercial)
MSEDCL
MSEDCL
January 20
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Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
TABLE OF CONTENTS
1
2
3
4
BACKGROUND ................................................................................................................................... 1
1.1
Introduction ........................................................................................................................................ 1
1.2
Provisions of Law .............................................................................................................................. 1
1.3
MSEDCL Submission ....................................................................................................................... 3
1.4
Appeal No. 280 of 2019 before Hon’ble APTEL, New Delhi ...................................................... 3
REVISED O&M EXPENSES FOR FY 2015-16 ................................................................................. 5
2.1
Preamble ............................................................................................................................................ 5
2.2
Revised O&M Expenses for FY 2015-16 ...................................................................................... 6
IMPACT OF THE RECONCILIATION OF OPENING GFA .............................................................. 8
3.1
Preamble ............................................................................................................................................ 8
3.2
Gross Fixed Assets........................................................................................................................... 8
3.3
Depreciation ..................................................................................................................................... 10
3.4
Interest on Long Term Loans ........................................................................................................ 10
3.5
Return on Equity ............................................................................................................................. 11
3.6
Summary of impact of reinstatement of GFA.............................................................................. 13
FINAL TRUE UP FOR FY 2017-18 .................................................................................................. 14
4.1
Preamble .......................................................................................................................................... 14
4.2
Category Wise Sales for FY 2017-18 .......................................................................................... 14
4.3
Distribution Losses for FY 2017-18 .............................................................................................. 15
4.4
Energy Balance for FY 2017-18 ................................................................................................... 15
4.5
Power Purchase Expenses for FY 2017-18 ................................................................................ 20
4.6
Intra State Transmission Charges for FY 2017-18 .................................................................... 23
4.7
Fixed Costs for FY 2017-18 .......................................................................................................... 24
4.8
Actual Operation & Maintenance Expenses for FY 2017-18 .................................................... 24
4.9
Normative Operation & Maintenance Expenses for FY 2017-18 ............................................. 27
4.10
Capitalisation for FY 2017-18 ....................................................................................................... 28
4.11
Depreciation for FY 2017-18 ......................................................................................................... 29
4.12
Funding Arrangement for FY 2017-18 ......................................................................................... 30
4.13
Interest Expenses for FY 2017-18................................................................................................ 31
4.14
Interest on Working Capital for FY 2017-18 ............................................................................... 33
4.15
Other Finance Charges for FY 2017-18 ...................................................................................... 35
4.16
Provision for Bad Debts for FY 2017-18 ...................................................................................... 36
4.17
Other Expenses for FY 2017-18 ................................................................................................... 38
4.18
Contribution to Contingency Reserves for FY 2017-18 ............................................................ 38
4.19
Incentives and Discounts for FY 2017-18 ................................................................................... 39
MSEDCL
January 20
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Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
5
4.20
RLC Refund for FY 2017-18.......................................................................................................... 39
4.21
ASC Refund for FY 2017-18 ......................................................................................................... 39
4.22
Return on Equity for FY 2017-18 .................................................................................................. 40
4.23
Sharing of Efficiency Gains & Losses for FY 2017-18 .............................................................. 41
4.24
Impact of payment to MPECS for FY 2017-18 ........................................................................... 44
4.25
Past Period Adjustment by Commission for FY 2017-18 .......................................................... 45
4.26
Aggregate Revenue Requirement for FY 2017-18 .................................................................... 45
4.27
Revenue from sale of electricity for FY 2017-18 ........................................................................ 46
4.28
Non-Tariff Income for FY 2017-18................................................................................................ 47
4.29
Income from Open Access Charges for FY 2017-18 ................................................................ 49
4.30
Income from Trading of Surplus Power for FY 2017-18 ........................................................... 49
4.31
Income from Wheeling Charges for FY 2017-18........................................................................ 50
4.32
Income from Additional Surcharge for FY 2017-18 ................................................................... 50
4.33
Revenue Gap/(Surplus) for FY 2017-18 ...................................................................................... 50
TRUE UP OF FY 2018-19 ................................................................................................................. 52
5.1
Preamble .......................................................................................................................................... 52
5.2
Category Wise Sales for FY 2018-19 .......................................................................................... 52
5.5
Distribution Losses for FY 2018-19 .............................................................................................. 55
5.6
Energy Balance for FY 2018-19 ................................................................................................... 55
5.7
Power Purchase Expenses for FY 2018-19 ................................................................................ 57
5.8
Transmission Charges for FY 18-19 ............................................................................................ 62
5.9
Fixed Costs for FY 2018-19 .......................................................................................................... 63
5.10
Actual Operation & Maintenance Expenses for FY 2018-19 .................................................... 63
5.11
Normative Operation & Maintenance Expenses for FY 2018-19 ............................................. 64
5.12
Capitalisation for FY 2018-19 ....................................................................................................... 65
5.13
Depreciation for FY 2018-19 ......................................................................................................... 67
5.14
Funding Pattern for FY 2018-19 ................................................................................................... 67
5.15
Interest Expenses for FY 2018-19................................................................................................ 68
5.16
Interest on Working capital for FY 2018-19 ................................................................................ 69
5.17
Other Finance Charges for FY 2018-19 ...................................................................................... 72
5.18
Provision for Bad Debts for FY 2018-19 ...................................................................................... 73
5.19
Other Expenses for FY 2018-19 ................................................................................................... 74
5.20
Contribution to Contingency Reserves for FY 2018-19 ............................................................ 75
5.21
Income Tax ...................................................................................................................................... 76
5.22
Incentives and Discounts for FY 2018-19 ................................................................................... 76
5.23
RLC Refund for FY 2018-19.......................................................................................................... 76
5.24
Return on Equity for FY 2018-19 .................................................................................................. 77
5.25
Sharing of Efficiency Gains & Losses for FY 2018-19 .............................................................. 78
5.26
Impact of payment to MPECS for FY 2018-19 ........................................................................... 81
MSEDCL
January 20
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Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
6
5.27
Past Period Adjustment by Commission for FY 2018-19 .......................................................... 81
5.28
Revenue Gap Recovery Allowed for FY 2018-19 ...................................................................... 82
5.29
Aggregate Revenue Requirement for FY 2018-19 .................................................................... 82
5.30
Revenue from sale of electricity for FY 2018-19 ........................................................................ 84
5.31
Non-Tariff Income for FY 2018-19................................................................................................ 84
5.32
Income from Open Access Charges for FY2018-19.................................................................. 85
5.33
Income from Trading of Surplus Power for FY 2018-19 ........................................................... 86
5.34
Income from Wheeling Charges for FY 2018-19........................................................................ 86
5.35
Income from Additional Surcharge for FY 2018-19 ................................................................... 86
5.36
Revenue Gap/(Surplus) for FY 2018-19 ...................................................................................... 87
PROVISIONAL TRUE UP OF FY 2019-20 ...................................................................................... 89
6.1
Preamble .......................................................................................................................................... 89
6.2
Principles of Truing-up for FY 2019-20 ........................................................................................ 89
6.3
Category Wise Sales for FY 2019-20 .......................................................................................... 89
6.4
Distribution Losses for FY 2019-20 .............................................................................................. 90
6.5
Energy Balance for FY 2019-20 ................................................................................................... 90
6.6
Power Purchase Expenses for FY 2019-20 ................................................................................ 92
6.7
Transmission Charges for FY 2019-20 ........................................................................................ 93
6.8
Fixed Costs for FY 2019-20 .......................................................................................................... 93
6.9
Normative Operation & Maintenance Expenses for FY 2019-20 ............................................. 94
6.10
Capitalisation for FY 2019-20 ....................................................................................................... 95
6.11
Depreciation for FY 2019-20 ......................................................................................................... 97
6.12
Funding Pattern for FY 2019-20 ................................................................................................... 97
6.13
Interest Expenses for FY 2019-20................................................................................................ 98
6.14
Interest on Working capital for FY 2019-20 ................................................................................ 99
6.15
Other Finance Charges ................................................................................................................ 101
6.16
Provision for Bad Debts for FY 2019-20 .................................................................................... 102
6.17
Other Expenses for FY 2019-20 ................................................................................................. 103
6.18
Provision for Contribution to Contingency Reserves for FY 2019-20 ................................... 103
6.19
Incentives and Discounts for FY 2019-20 ................................................................................. 104
6.20
RLC Refund for FY 2019-20........................................................................................................ 104
6.21
Return on Equity for FY 2019-20 ................................................................................................ 105
6.22
Impact of payment to MPECS for FY 2019-20 ......................................................................... 106
6.23
Past Period Adjustment by Commission for FY 2019-20 ........................................................ 106
6.24
Revenue Gap Recovery Allowed for FY 2019-20 .................................................................... 107
6.25
Aggregate Revenue Requirement for FY 2019-20 .................................................................. 107
6.26
Revenue for FY 2019-20 ............................................................................................................. 109
6.27
Non-Tariff Income for FY 2019-20.............................................................................................. 109
6.28
Income from Open Access Charges for FY 2019-20 .............................................................. 110
MSEDCL
January 20
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Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
7
6.29
Income from Trading of Surplus Power for FY 2019-20 ......................................................... 110
6.30
Income from Wheeling Charges for FY 2019-20...................................................................... 110
6.31
Income from Additional Surcharge for FY 2019-20 ................................................................. 111
6.32
Revenue Gap/(Surplus) for FY 2019-20 .................................................................................... 111
AGGREGATE REVENUE REQUIREMENT FOR FY 20-21 TO FY 24-25 .................................. 113
7.1
Preamble ........................................................................................................................................ 113
7.2
Approach for Sales Projection for Control Period .................................................................... 113
7.3
CAGR considered for Sales Projection for Control Period ..................................................... 115
7.4
Sales Projections for Control Period .......................................................................................... 118
7.5
Sales projections for Distribution Franchisees for Control Period ......................................... 119
7.6
Approach for No. of Consumers Projection for Control Period .............................................. 120
7.7
CAGR considered for Projection of Nos. Consumer for Control Period ............................... 121
7.8
Number of Consumer Projections for Control Period .............................................................. 124
7.9
Approach for Connected Load/ Contract Demand Projection for Control Period ................ 126
7.10
CAGR considered for Connected Load/Contract Demand Projection .................................. 127
7.11
Connected Load Projections for Control Period ....................................................................... 129
7.12
Segregation of Wires and Supply Business for Control Period ............................................. 131
7.13
Estimation of ARR for Control Period ........................................................................................ 133
7.14
Power Purchases Expenses for Control Period ....................................................................... 133
7.15
Assumptions for power purchase for Control Period ............................................................... 134
7.16
Assumptions for source wise Power Purchase Projection for Control Period ..................... 135
7.17
Intra State Transmission Charges .............................................................................................. 140
7.18
Distribution Loss for the Control Period ..................................................................................... 141
7.19
Energy Balance for Control Period ............................................................................................. 142
7.20
Operation & Maintenance Expenses for Control Period ......................................................... 144
7.21
Opex for the Control Period ......................................................................................................... 145
7.22
Capex and Capitalisation for Control Period ............................................................................. 146
7.23
Funding Pattern of the Capitalisation for Control Period......................................................... 147
7.24
Depreciation for Control Period .................................................................................................. 147
7.25
Interest on Long Term Loan for Control Period ........................................................................ 148
7.26
Interest on Working Capital for Control Period ......................................................................... 149
7.27
Other Finance Charges for Control Period ............................................................................... 152
7.28
Provision for Bad Debts for Control Period ............................................................................... 152
7.29
Other Expenses for Control Period ............................................................................................ 154
7.30
Contribution to Contingency Reserves for Control Period ...................................................... 155
7.31
Incentives and Discounts for Control Period ............................................................................. 156
7.32
Income Tax for Control Period .................................................................................................... 157
7.33
Return on Equity for Control Period ........................................................................................... 158
7.34
Impact of payment to MPECS in Control Period ...................................................................... 161
MSEDCL
January 20
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Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
8
9
7.35
Revenue from sale of electricity for Control Period ................................................................. 161
7.36
Non-Tariff Income for Control Period ......................................................................................... 162
7.37
Income from Open Access Charges for Control Period .......................................................... 163
7.38
Income from Additional Surcharge for Control Period ............................................................. 163
7.39
Aggregate Revenue Requirement for Control Period .............................................................. 163
ADDITIONAL CLAIMS AND NET RECOVERY FROM TARIFF ................................................. 166
8.1
Impact of Reinstatement of GFA of Rs. 927 Crs ...................................................................... 166
8.2
Impact of capitalisation of DPDC for FY 16-17 in MTR Order ............................................... 167
8.3
Impact of Review Order ............................................................................................................... 167
8.4
Impact of Change in Law in Power Purchase ........................................................................... 170
8.5
Carrying Cost on previous Gap and other Claims ................................................................... 174
8.6
Carrying Cost on unrecovered revenue gap during Control Period ...................................... 177
8.7
Incremental Revenue from CSS and Additional Surcharge ................................................... 177
8.8
Net Recovery from Tariff .............................................................................................................. 177
TARIFF DESIGN AND METHODOLOGY ...................................................................................... 179
9.1
Tariff Design Principles ................................................................................................................ 179
9.2
Full Cost Recovery ....................................................................................................................... 179
9.3
Rationalization of Fixed Cost ...................................................................................................... 180
9.4
Revision in Billing Demand .......................................................................................................... 184
9.5
Penalty for Contract Demand Violations ................................................................................... 188
9.6
kVAh Based Billing ....................................................................................................................... 190
9.7
Recording of Maximum Demand ................................................................................................ 200
9.8
Revision in Load Factor Formula................................................................................................ 202
9.9
Rebate for Incremental Consumption ........................................................................................ 205
9.10
9.11
Prepaid Meter Rebate .................................................................................................................. 207
kVA based Fixed Charges for Loads < 20 kW & consideration of Load in kVA instead of kW
208
9.12
Grid Support Charges for Rooftop Net Metering Arrangements ............................................ 211
9.13
Additional Demand/Fixed Charges for Rooftop Grid Connected RE Systems not opting for
Net Metering or Net Billing Arrangement ................................................................................................. 218
9.14
InSTS Charges for Open Access Consumers .......................................................................... 220
9.15
Change in Slabs for Commercial and Public Services ............................................................ 223
9.16
Standby Charges for Captive Power Producers ...................................................................... 223
9.17
Standby Charges for SEZs and Deemed Licensees ............................................................... 226
9.18
Revision in ToD Rates ................................................................................................................. 229
9.19
Harmonics Penalty........................................................................................................................ 230
9.20
Petitions by MSEDCL in Past Regarding Harmonics .............................................................. 233
9.21
Compliance of Directives in Case No.34 of 2011 .................................................................... 233
MSEDCL
January 20
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Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
9.22
Regulatory Provisions for Harmonics......................................................................................... 234
9.23
Proposal for Harmonics Penalty ................................................................................................. 237
9.24
Expenses for Go Green Initiative (E-Copy of the Bill) ............................................................. 238
9.25
Expenses for SMS Service .......................................................................................................... 241
9.26
Revision in Reconnection Charges for Restoration of Power Supply ................................... 243
9.27
Additional Suggestions for Tariff Applicability ........................................................................... 246
9.28
Modification in Tariff Applicability ............................................................................................... 248
9.29
Any Other submission .................................................................................................................. 250
10
SHARING OF CROSS SUBSIDY IMPACT DUE TO AG CONSUMERS IN MAHARASHTRA 251
11
WHEELING CHARGES ................................................................................................................... 255
11.1
12
13
14
15
16
Network Cost of MSEDCL ........................................................................................................... 255
TARIFF RECOVERY MECHANISM ............................................................................................... 259
12.1
Background .................................................................................................................................... 259
12.2
Rationale of Tariff Hike................................................................................................................. 260
12.3
Proposed Recovery from Tariff ................................................................................................... 274
12.4
ABR/ACoS Ratio ........................................................................................................................... 274
12.5
Cross Subsidy Trajectory............................................................................................................. 280
CROSS SUBSIDY SURCHARGE .................................................................................................. 282
13.1
Background .................................................................................................................................... 282
13.2
Lower CSS approved ................................................................................................................... 283
13.3
CSS as Compensatory Charge .................................................................................................. 285
13.4
Computation of Cross Subsidy Surcharge for the Control Period ......................................... 286
ADDITIONAL SURCHARGE .......................................................................................................... 296
14.1
Background .................................................................................................................................... 296
14.2
Backing down due to surplus power scenario .......................................................................... 297
14.3
Surcharge Computation ............................................................................................................... 300
PROPOSED TARIFF APPLICABILITY.......................................................................................... 304
15.1
Background .................................................................................................................................... 304
15.2
LT Category ................................................................................................................................... 305
15.3
HT Category .................................................................................................................................. 333
DETAILS OF CAPEX SCHEMES ................................................................................................... 352
16.1
INFRA-II Scheme .......................................................................................................................... 352
16.2
INFRA PART II Scheme in 7 Towns .......................................................................................... 352
16.3
Feeder Separation Scheme ........................................................................................................ 353
16.4
R-APDRP Scheme ....................................................................................................................... 355
MSEDCL
January 20
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Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
16.5
SCADA Part A ............................................................................................................................... 357
16.6
SCADA Part B ............................................................................................................................... 358
16.7
Integrated Power Development Scheme (IPDS-I) ................................................................... 359
16.8
Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY) ........................................................... 361
16.9
SAP ERP Project .......................................................................................................................... 362
16.10
DC/DR IT Infra Up-Gradation – I ................................................................................................ 364
16.11
DPDC/Non-Tribal .......................................................................................................................... 366
16.12
DPDC/Special Component Plan ................................................................................................. 367
16.13
DPDC/TSP+OTSP (District Wise) .............................................................................................. 368
16.14
Backlog Removal Scheme .......................................................................................................... 370
16.15
AG Special Package for Vidarbha & Marathwada ................................................................... 370
16.16 Saubhagya Scheme ..................................................................................................................... 371
16.17 Providing and Fixing of Energy Metering Arrangement At 33kv & 22kv Incoming Feeders at
33/11kv Substations & 22kv Switching Stations. .................................................................................... 372
17
18
16.18
HVDS Scheme .............................................................................................................................. 373
16.19
High Loss Feeder (HLF) Scheme ............................................................................................... 374
16.20
System Strengthening in Metropolitan Region (SSMR Scheme) .......................................... 376
16.21
GIS Survey..................................................................................................................................... 377
16.22
Procurement of Modems For AMR ............................................................................................ 379
16.23
Network Bandwidth Service Providers for AMR & Other Projects (NBSP UMBRELLA) .... 380
16.24
Scheme for East Vidharbha (Shet-tale): .................................................................................... 381
16.25
Energy Command & Control Center .......................................................................................... 382
16.26
National Cyclone Risk Mitigation Project ................................................................................... 384
16.27
Mukhyamantri Sour Krishi Vahini Yojana (MSKVY) ................................................................ 385
16.28
Mukhyamantri Saur Krushi Pump Yojana (MSKPY) ................................................................ 388
DETAILS OF OPEX SCHEMES ..................................................................................................... 391
17.1
Customer Care Center ................................................................................................................. 391
17.2
Go Green Initiative ........................................................................................................................ 393
17.3
SMS Services ................................................................................................................................ 395
17.4
RF-DCU (Expression of Interest & Tender) .............................................................................. 397
17.5
Substation Monitoring System (SMS) ........................................................................................ 399
17.6
MSEDCL Cloud Project ............................................................................................................... 403
17.7
Annual Technical Support of SAP/HANA/Oracle Software Licences.................................... 405
17.8
Vehicle Tracking System ............................................................................................................. 407
CONSUMER SERVICE INITIATIVES ............................................................................................ 409
18.1
Mobile App for Consumers .......................................................................................................... 409
18.2
SMS Alerts & E-mail notifications to Consumers ..................................................................... 409
18.3
Online Cash Collection System (OCCS) ................................................................................... 411
MSEDCL
January 20
vii
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
19
18.4
MahaPowerPay Wallet: ................................................................................................................ 411
18.5
Online Address Correction & Name change facility ................................................................. 412
18.6
Consumer outreach through Social Media such as Twitter, Facebook ................................ 412
18.7
Integration of MSEDCL IT system with Aaple Sarkar / Maitri / Garv / Urja portal ............... 412
18.8
Centralized Billing ......................................................................................................................... 413
18.9
RF Metering & AMR for HT Consumers, Feeders ................................................................... 414
18.10
HT Consumer Portal ..................................................................................................................... 415
18.11
Online Refund of Security Deposit / Electricity Duty................................................................ 415
18.12
Proposed Consumer Services .................................................................................................... 415
PROPOSAL FOR SCHEDULE OF CHARGES ............................................................................. 417
19.1
Background .................................................................................................................................... 417
19.2
Calculations for Service Connection Charges .......................................................................... 419
19.3
Cost of Meters and Hiring charges ............................................................................................. 424
19.4
Hiring Charges: ............................................................................................................................. 427
19.5
Miscellaneous and General charges .......................................................................................... 429
19.6
Installation Inspection & Testing Fees: ...................................................................................... 430
19.7
Reconnection Charges: ............................................................................................................... 431
19.8
Changing Location of the Meter within the same premises (shifting of service is not
required) at consumer’s request: .............................................................................................................. 432
20
19.9
Shifting of services/Poles/Lines (Utility), if carried out only on consumer’s request: .......... 432
19.10
Testing of Meters/Equipment ...................................................................................................... 433
19.11
Administrative Charges for Cheque Bouncing: ........................................................................ 436
19.12
Schedule of Charges for Open Access & all Generators ........................................................ 436
19.13
MSEDCL’s reasoning for proposed Charges: .......................................................................... 436
19.14
Applicable Taxes:.......................................................................................................................... 437
COMPLIANCE TO THE DIRECTIVES IN CASE NO. 195 OF 2017 ............................................ 438
20.1
21
Background .................................................................................................................................... 438
PRAYERS TO THE HON’BLE COMMISSION .............................................................................. 440
MSEDCL
January 20
viii
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
LIST OF TABLES
Table 1: O&M Expenses for Distribution Wires Business for FY 2015-16 .................................................. 6
Table 2: O&M Expenses for Retail Supply Business for FY 2015-16 .......................................................... 6
Table 3: Sharing of gains on account of O&M Expenses FY 15-16 ............................................................. 7
Table 4: Reinstatement of GFA ......................................................................................................................... 8
Table 5: Comparison of the capitalization and funding of the capitalization for FY 07-08 ........................ 9
Table 6: Impact of Reinstatement of GFA on Depreciation ......................................................................... 10
Table 7: Revised Normative Loan Balance for FY 12-13 ............................................................................ 11
Table 8: Impact of Reinstatement of GFA on Interest on Loans................................................................. 11
Table 9: Impact of Reinstatement of GFA on Return on Equity .................................................................. 12
Table 10: Summary of Impact of Reinstatement of GFA ............................................................................. 13
Table 11: Category wise sales for FY 17-18 .................................................................................................. 14
Table 12: Distribution Losses for FY 17-18 .................................................................................................... 15
Table 13: Energy Available for Sales for FY 17-18 ....................................................................................... 16
Table 14: Energy Balance for FY 17-18 ......................................................................................................... 19
Table 15: Power Purchase Expenses for FY 17-18...................................................................................... 21
Table 16: Transmission Charges for FY 2017-18 ......................................................................................... 23
Table 17: Actual O&M Expenses for FY 2017-18 ......................................................................................... 24
Table 18: O&M Expenses for Wires and Supply Business for FY 17-18 .................................................. 28
Table 19: Capitalisation for FY 17-18 ............................................................................................................. 28
Table 20: Addition to GFA as per Annual Accounts for FY 17-18 .............................................................. 29
Table 21: Depreciation for FY 17-18 ............................................................................................................... 30
Table 22: Funding of Capitalisation for FY 2017-18 ..................................................................................... 31
Table 23: Computation of weighted avg. interest rate for FY 17-18........................................................... 32
Table 24: Interest Expenses for FY 17-18 ..................................................................................................... 32
Table 25: Working of weighted average Base Rate ..................................................................................... 33
Table 26: Interest on Working Capital for Wire business for FY 17-18 ..................................................... 34
Table 27: Working Capital for Retail Supply business for FY 17-18 .......................................................... 35
Table 28: Other Finance Charges for FY 17-18 ............................................................................................ 36
Table 29: Provision for bad and doubtful debts for FY 2017-18 ................................................................. 37
Table 30: Provision for Bad and Doubtful Debt (Wire and Supply) FY 2017-18 ...................................... 37
Table 31: Other Expenses for FY 2017-18 .................................................................................................... 38
Table 32: Incentives/discounts for FY 17-18 ................................................................................................. 39
Table 33: RLC Refund for FY 17-18 ............................................................................................................... 39
Table 34: ASC Refund for FY 17-18 ............................................................................................................... 39
Table 35: RoE for wires business for FY 17-18............................................................................................. 41
Table 36: RoE for Supply business for FY 17-18 .......................................................................................... 41
Table 37: Sharing of Efficiency Gains/(Losses) on O&M and IoWC Expenses for FY 2017-18 ............ 43
Table 38: Efficiency Gains/(Losses) due to lower Distribution Loss in FY 2017-18 ................................ 44
MSEDCL
January 20
ix
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 39: Impact of sharing of gains and losses for FY 17-18 .................................................................... 44
Table 40: ARR for Wires Business for FY 17 -18 ......................................................................................... 45
Table 41: ARR for Supply Business for FY 17 -18 ....................................................................................... 46
Table 42: Revenue from Sale of power for FY 17-18 ................................................................................... 46
Table 43: Category wise Revenue for FY 2017-18 ....................................................................................... 47
Table 44: Non-Tariff Income for FY 17-18 ..................................................................................................... 48
Table 45: Income from Open Access Charges for FY 17-18 ...................................................................... 49
Table 46: Details of Income Open Access Charges for FY 17-18 .............................................................. 49
Table 47: Income from Trading of Surplus Power for FY 17-18 ................................................................. 50
Table 48: Income from Wheeling Charges for FY 2017-18 ......................................................................... 50
Table 49: Income from Additional Surcharge for FY 2017-18 ..................................................................... 50
Table 50: Revenue Gap/Surplus for FY 17-18 .............................................................................................. 51
Table 51: Category wise Sales for FY 2018-19............................................................................................. 52
Table 52: Increase in AG Sales FY 18-19 (Half Yearly) .............................................................................. 53
Table 53: Increase in AG Sales FY 18-19 (Yearly)....................................................................................... 53
Table 54: Distribution Losses FY 2018-19 ..................................................................................................... 55
Table 55: Energy Sales for MSEDCL for FY 2018-19 .................................................................................. 56
Table 56: Energy Requirement and Energy Balance FY 2018-19 ............................................................. 57
Table 57: Source wise Power Purchase for FY 18-19 ................................................................................. 58
Table 58: Transmission Charges paid to Transmission Licensee for FY 2018-19 .................................. 62
Table 59: Actual O&M Expenses for FY 2018-19 ......................................................................................... 63
Table 60: Escalation factor for FY 2018-19 ................................................................................................... 65
Table 61: O&M Expenses for FY 2018-19 ..................................................................................................... 65
Table 62: Capitalisation for FY 2018-19 ......................................................................................................... 66
Table 63: Capitalization as per Audited Accounts for FY 2018-19 ............................................................. 66
Table 64: Depreciation for FY 2018-19 .......................................................................................................... 67
Table 65: Funding Pattern of Capitalization for FY 2018-19 ....................................................................... 68
Table 66: Rate of Interest for FY 2018-19...................................................................................................... 68
Table 67: Interest Expenses for FY 2018-19 ................................................................................................. 69
Table 68: Calculation of Weighted Avg. Arte of MCLR ................................................................................ 70
Table 69: Interest on Working Capital for Wire business for FY 18-19 ..................................................... 71
Table 70: Interest on Working capital for Supply business for FY 18-19 .................................................. 72
Table 71: Other Finance Charges for FY 2018-19 ....................................................................................... 72
Table 72: Computation of provision for bad and doubtful debts for FY 2018-19 ...................................... 74
Table 73: Provision for Bad debts for FY 2018-19 ........................................................................................ 74
Table 74: Other Expenses FY 2018-19 .......................................................................................................... 75
Table 75: Contingency Reserve for FY 2018-19 ........................................................................................... 75
Table 76: Income Tax for FY 18-19 ................................................................................................................ 76
Table 77: Incentives/Discount for FY 18-19 ................................................................................................... 76
Table 78: RLC Refund for FY 18-19 ............................................................................................................... 77
MSEDCL
January 20
x
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 79: RoE for Wires Business for FY 18-19 ........................................................................................... 78
Table 80: RoE for Retail Supply Business for FY 18-19 .............................................................................. 78
Table 81: O&M Expenses & Interest on Working Capital for FY 18-19 ..................................................... 80
Table 82: Sharing of Gains/Losses by MSEDCL & Consumers for FY 18-19 .......................................... 80
Table 83: Impact of Sharing of Gains/Losses for FY 18-19 ........................................................................ 81
Table 84: Revenue Recovery allowed in MTR for FY 2018-19................................................................... 82
Table 85: ARR for Distribution Wires for FY 18-19 ....................................................................................... 83
Table 86: ARR for Supply Business for FY 18-19......................................................................................... 83
Table 87: Revenue from Sale of Power for FY 18-19 .................................................................................. 84
Table 88: Non-Tariff Income for FY 18-19 ..................................................................................................... 84
Table 89: Income from Open Access Charges for FY 18-19 ...................................................................... 85
Table 90: Income from Trading of Surplus Power for FY 18-19 ................................................................. 86
Table 91: Income from Wheeling Charges for FY 18-19 ............................................................................. 86
Table 92: Income from Additional Surcharge for FY 18-19 ......................................................................... 87
Table 93: ARR for Wires & Supply Business for the FY 2018-19............................................................... 88
Table 94: Category wise Sales for FY 2019-20............................................................................................. 90
Table 95: Distribution Losses FY2019-20 ...................................................................................................... 90
Table 96: Energy Sales for FY 2019-20 ......................................................................................................... 91
Table 97: Energy Requirement and Energy Balance FY 2019-20 ............................................................. 92
Table 98: Source wise estimated Power Purchase for FY 2019-20 ........................................................... 93
Table 99: Transmission Charges paid to Transmission Licensee for FY 2019-20 .................................. 93
Table 100: O&M Expenses for FY 2019-20 ................................................................................................... 94
Table 101: Capitalisation for FY 2019-20 ....................................................................................................... 95
Table 102: Capitalisation for FY 2019-20 ....................................................................................................... 97
Table 103: Depreciation for FY 2019-20 ........................................................................................................ 97
Table 104: Funding Pattern of Capitalisation for FY 2019-20 ..................................................................... 98
Table 105: Interest Expenses for FY 2019-20 ............................................................................................... 99
Table 106: Interest on Working Capital for Wire business for FY 2019-20 ............................................. 100
Table 107: Interest on Working capital for Supply business for FY 2019-20 .......................................... 101
Table 108: Other Finance Charges ............................................................................................................... 101
Table 109: Computation of Provision for Bad Debt for FY 19-20 ............................................................. 102
Table 110: Provision for Bad debts for FY 2019-20.................................................................................... 103
Table 111: Other Expenses for FY 2019-20 ................................................................................................ 103
Table 112: Contingency Reserve for FY 2019-20....................................................................................... 104
Table 113: Incentives/Discount for FY 2019-20 .......................................................................................... 104
Table 114: Refund of RLC for FY 2019-20 .................................................................................................. 105
Table 115: RoE for wires business for FY 2019-20 .................................................................................... 105
Table 116: RoE for retail supply business for FY 2019-20 ........................................................................ 106
Table 117: Revenue Gap Recovery Allowed for FY 2019-20 ................................................................... 107
Table 118: ARR for Wires Business for the FY 2019-20 ........................................................................... 108
MSEDCL
January 20
xi
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 119: ARR for Supply Business for the FY 2019-20 ......................................................................... 108
Table 120: Revenue for FY 2019-20 ............................................................................................................. 109
Table 121: Non-Tariff Income for FY 2019-20 ............................................................................................. 109
Table 122: Income from Open Access Charges FY 2019-20 ................................................................... 110
Table 123: Income from Power trading of surplus power for FY 2019-20 ............................................... 110
Table 124: Income from Wheeling Charges FY 2019-20 .......................................................................... 110
Table 125: Income from Additional Surcharge for FY 2019-20................................................................. 111
Table 126: Revenue Gap/ (Surplus) for FY 2019-20 .................................................................................. 112
Table 127: Historical Sales Growth and CAGR (HT Category) ................................................................ 114
Table 128: Historical Sales Growth and CAGR (LT Category) ................................................................. 115
Table 129: CAGR Considered for Sales Projections (HT Category)........................................................ 116
Table 130: CAGR Considered for Sales Projections (LT Category) ........................................................ 117
Table 131: Sales Projections (HT category) for the Control Period ......................................................... 118
Table 132: Sales Projections (LT Category) ................................................................................................ 119
Table 133: Input Sales for Bhiwandi DF for the Control Period ................................................................ 120
Table 134: Historical Growth and CAGR No. of Consumers (HT Category) .......................................... 121
Table 135: Historical Growth and CAGR No. of Consumers (LT Category) ........................................... 121
Table 136: CAGR Considered for No. of Consumers Projections (HT Category) ................................. 123
Table 137: CAGR Considered for No. of Consumers Projections (LT Category) .................................. 124
Table 138: No. of Consumers Projections (HT category) for the Control Period ................................... 125
Table 139: No. of Consumers Projections (LT category) for the Control Period .................................... 125
Table 140: Historical Growth and CAGR connected load/Contract Demand (HT Category) ............... 126
Table 141: Historical Growth and CAGR connected load/Contract Demand (LT Category) ................ 127
Table 142: CAGR Considered for Contract Demand Projections (HT Category) .................................. 128
Table 143: CAGR Considered for Connected Load/Contract Demand Projections (LT Category) ..... 129
Table 144: Connected load/contract demand Projections (HT category) for the Control Period ......... 130
Table 145: Connected load/contract demand Projections (LT category) for the Control Period ......... 131
Table 146: Segregation for Retail Supply and Wires Business Expenses .............................................. 132
Table 147: Source wise Power Purchase quantum and cost for FY 2020-21 to FY 2022-23 .............. 139
Table 148: Source wise Power Purchase quantum and cost for FY 2023-24 to FY 2024-25 .............. 139
Table 149: Intra State Transmission charges for Control Period .............................................................. 141
Table 150: Proposed Distribution Loss for the Control Period .................................................................. 142
Table 151: Total Energy Sales for MSEDCL for FY 2020-21 to FY 2024-25 ......................................... 142
Table 152: Energy Balance for FY 2020-21 to FY 2022-23 ...................................................................... 143
Table 153: Energy Balance for FY 2023-24 to FY 2024-25 ...................................................................... 144
Table 154: Normative O&M Expenses for the Control Period................................................................... 145
Table 155: Opex Schemes for the Control Period ...................................................................................... 146
Table 156: Capital expenditure and capitalisation for the Control Period ............................................... 146
Table 157: Funding Pattern of the Capitalisation for the Control Period ................................................. 147
Table 158: Depreciation for the Control Period ........................................................................................... 148
MSEDCL
January 20
xii
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 159: Interest Expenses on Long Term Loan for the Control Period .............................................. 149
Table 160: Interest on Working Capital and SD for Wires Business for the Control Period ................. 150
Table 161: Interest on Working Capital and SD for Supply Business for the Control Period ............... 152
Table 162: Provision for Bad and Doubtful Debt for Wires Business for the Control Period ................ 154
Table 163: Provision for Bad and Doubtful Debt for Supply Business for the Control Period .............. 154
Table 164: Other Expenses for the Control Period ..................................................................................... 155
Table 165: Contribution to contingency reserve for the Control Period ................................................... 156
Table 166: Incentives/Discounts for the Control Period ............................................................................. 156
Table 167: ROE for wires business for the Control Period ........................................................................ 160
Table 168: ROE for Retail Supply business for the Control Period .......................................................... 160
Table 169: Impact of payment to MPECS in Control Period ..................................................................... 161
Table 170: Revenue from Sale of Power at Existing Tariff for the Control Period ................................. 161
Table 171: Non-Tariff Income for the Control Period.................................................................................. 162
Table 172: Income from Open Access Charges for the Control Period .................................................. 163
Table 173: Income from Additional Surcharge for the Control Period ..................................................... 163
Table 174: ARR for Wires Business for the Control Period ....................................................................... 164
Table 175: ARR for Supply Business for the Control Period ..................................................................... 164
Table 176: Combined ARR for Supply and Wires Business for the Control Period ............................... 165
Table 177: Net Impact of Reinstatement of GFA of Rs. 927 Crs .............................................................. 166
Table 178: Impact of DPDC Disallowance for FY 16-17 ............................................................................ 167
Table 179: Impact of Revised O&M Expenses for FY 15-16 and FY 16-17 ........................................... 168
Table 180: Impact of Correction in Distribution Loss for FY 2016-17 ...................................................... 169
Table 181: Total Impact of Review Order..................................................................................................... 170
Table 182: Calculation of carrying cost on previous claims ...................................................................... 176
Table 183: Carrying Cost on Unrecovered Revenue Gap during the Control Period ............................ 177
Table 184: Net Recovery from Tariff ............................................................................................................. 178
Table 185: Category-wise energy consumption details in kVAh and kWh .............................................. 197
Table 186: Proposed Grid Support Charges for Rooftop Net Metering Arrangements (FY 20-21) ..... 214
Table 187: Grid Support Charges for Rooftop Net Metering Arrangements (HT Category) ................. 215
Table 188: Grid Support Charges for Rooftop Net Metering Arrangements (LT Category) ................. 216
Table 189: Additional Fixed/Demand Charges for Grid Connected RE Generating Systems connected
behind the Consumer’s meter .............................................................................................................. 220
Table 190: Network Cost of MSEDCL for FY 2020-21 to FY 2024-25 .................................................... 255
Table 191: Segregation of GFA for the Control Period .............................................................................. 256
Table 192: Network cost apportioned for the Control Period .................................................................... 256
Table 193: Voltage Wise Consumption for the Control Period ................................................................. 257
Table 194: Calculation of Wheeling Cost for FY 20-21 .............................................................................. 257
Table 195: Proposed Wheeling Charges for FY 2020-21 .......................................................................... 258
Table 196: Proposed Wheeling Charges for the Control Period............................................................... 258
Table 197: Proposed Wheeling Losses for the Control Period ................................................................. 258
MSEDCL
January 20
xiii
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 198: Comparison of Existing and Proposed Energy Charges (excl. Wheeling Charges) for HT
Category (1/2) ......................................................................................................................................... 262
Table 199: Comparison of Existing and Proposed Energy Charges (excl. Wheeling Charges) for HT
Category (2/2) ......................................................................................................................................... 263
Table 200: Comparison of Existing and Proposed Energy Charges (excl. Wheeling Charges) for LT
Category (1/4) ......................................................................................................................................... 264
Table 201: Comparison of Existing and Proposed Energy Charges (excl. Wheeling Charges) for LT
Category (2/4) ......................................................................................................................................... 265
Table 202: Comparison of Existing and Proposed Energy Charges (excl. Wheeling Charges) for LT
Category (3/4) ......................................................................................................................................... 266
Table 203: Comparison of Existing and Proposed Energy Charges (excl. Wheeling Charges) for LT
Category (4/4) ......................................................................................................................................... 267
Table 204: Comparison of Existing and Proposed Fixed Charges for HT Category (1/2) .................... 268
Table 205: Comparison of Existing and Proposed Fixed Charges for HT Category (2/2) .................... 269
Table 206: Comparison of Existing and Proposed Fixed Charges for LT Category (1/4) ..................... 270
Table 207: Comparison of Existing and Proposed Fixed Charges for LT Category (2/4) ..................... 271
Table 208: Comparison of Existing and Proposed Fixed Charges for LT Category (3/4) ..................... 272
Table 209: Comparison of Existing and Proposed Fixed Charges for LT Category (4/4) ..................... 273
Table 210: ABR and Cross Subsidy trajectory for FY 2020-21................................................................. 275
Table 211: ABR and Cross Subsidy trajectory for FY 2021-22................................................................. 276
Table 212: ABR and Cross Subsidy trajectory for FY 2022-23................................................................. 277
Table 213: ABR and Cross Subsidy trajectory for FY 2023-24................................................................. 278
Table 214: ABR and Cross Subsidy trajectory for FY 2024-25................................................................. 279
Table 215: Cross Subsidy Trajectory for the Control Period ..................................................................... 281
Table 216: Computation of C for the Control Period .................................................................................. 286
Table 217: Computation of System Loss for the Control Period............................................................... 287
Table 218: Computation of Wheeling Charge D for the Control Period ................................................... 288
Table 219: Detailed computation of CSS for FY 2020-21 for HT Consumers ........................................ 289
Table 220: Detailed computation of CSS for FY 2020-21 for LT Consumers (1/2) ............................... 290
Table 221: Detailed computation of CSS for FY 2020-21 for LT Consumers (2/2) ............................... 291
Table 222: Summary of CSS for the Control Period for HT Consumers ................................................. 292
Table 223: Summary of CSS for the Control Period for LT Consumers (1/2)......................................... 293
Table 224: Summary of CSS for the Control Period for LT Consumers (2/2)......................................... 294
Table 225: Proposed Additional Surcharge for FY 2020-21 ...................................................................... 301
Table 226: Proposed Additional Surcharge for FY 2021-22 ...................................................................... 301
Table 227: Proposed Additional Surcharge for FY 2022-23 ...................................................................... 302
Table 228: Proposed Additional Surcharge for FY 2023-24 ...................................................................... 302
Table 229: Proposed Additional Surcharge for FY 2024-25 ...................................................................... 303
MSEDCL
January 20
xiv
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
LIST OF ANNEXURES
Annexure 1: Regulatory Formats (n Soft Only Excel Format)
Annexure 2: Annual Accounts for FY 2017-18
Annexure 3: Annual Accounts for FY 2018-19
Annexure 4: Interest Rate for interest paid on SD for FY 2017-18
Annexure 5: Interest Rate for interest paid on SD for FY 2018-19
Annexure 6: FAQs regarding kVAh Billing
Annexure 7: Power Point Presentation on kVAh Billing
Annexure 8: Investment Proof for Contingency Reserves
Annexure 9: Letter to MERC highlighting issues pertaining to SEZ
Annexure 10: Detailed Cost Estimation Sheet for Schedule of Charges
MSEDCL
January 20
xv
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
LIST OF ABBREVIATIONS
Abbreviation
A&G
ABR
ABT
ACoS
AFC
AG
AMR
APDRP
APPC
ARR
AS
ASC
AT&C
ATE/APTEL
BPL
CAG
CAGR
Capex
CBA
CEA
CERC
CGS
CGPL
CGRF
CIL
COD
Commission/MERC
COS
CPI
CPP
CPPA
CR
CSD
CSS
CT
CTU
MSEDCL
Expansion
Administration and General
Average Billing Rate
Availability Based Tariff
Average Cost of Supply
Annual Fixed Cost
Agriculture
Automated Metering Reading
Accelerated Power Development and Reforms Programme
Average Power Purchase Cost
Aggregate Revenue Requirement
Accounting Standard
Additional Supply Charge
Aggregate Technical and Commercial
Appellate Tribunal for Electricity
Below Poverty Line
Comptroller and Auditor General
Compounded Annual Growth Rate
Capital Expenditures
Cost Benefit Analysis
Central Electricity Authority
Central Electricity Regulatory Commission
Central Generating Stations
Coastal Gujarat Power Limited
Consumer Grievances Redressal Forum
Coal India Ltd.
Commercial Operation Date
Maharashtra Electricity Regulatory Commission
Cost of Supply
Consumer Price Index
Captive Power Plant
Captive Power Producers Association
Consumer Representative
Consumer Security Deposit
Cross-subsidy Surcharge
Current Transformer
Central Transmission Utility
January 20
xvi
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
LIST OF ABBREVIATIONS
Abbreviation
CWIP
CUF
DA
DCL
DDUGJY
DF
DIC
DPC
DPR
DSM
DTC
DTL
EA 2003/Act
ED
EDP
EHV
ERP
FAC
FBSM
FSA
FY
GC
GEC
GFA
GFSS
GOI
GoM
GSA
HP
HT
HVDS
IBSM
IC
IDC
IIT
InSTS
MSEDCL
Expansion
Capital Work in Progress
Capacity Utilisation Factor
Dearness Allowance
Distribution Commercial Loss
Deen Dayal Upadhyay Gram Jyoti Yojana
Distribution Franchisee
Directorate of Industries and Commerce
Delay Payment Charges
Detailed Project Report
Demand Side Management
Distribution Transformer Centre
Deferred Tax Liability
Electricity Act, 2003
Electricity Duty
Embedded Display Port
Extra High Voltage
Enterprise Resource Planning
Fuel Adjustment Charge
Final Balance Settlement Mechanism
Fuel Supply Agreement
Financial Year
Generation Charge
Gross Energy Consumption
Gross Fixed Assets
Gaothan Feeder Separation Scheme
Government of India
Government of Maharashtra
Gas Supply Agreement
Horse Power
High Tension
High Voltage Distribution System
Interim Balancing Settlement Mechanism
Interim Charge
Interest During Construction
Indian Institute of Technology
Intra-State Transmission System
January 20
xvii
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
LIST OF ABBREVIATIONS
Abbreviation
IoWC
IPDS
IPP
ISTS
IT/ITES
kVA
kW
kWh
LC
LF
LT
LV
MCLR
MERC
MIDC
MIS
MoD
MOEF
MOP
MoU
MPECS
MSEB
MSEBHCL
MSEDCL
MSETCL
MSLDC
MSPGCL
MTR
MU
MW
MYT
NCDP
NLDC
NPCIL
NTP
MSEDCL
Expansion
Interest on Working Capital
Integrated Power Development Scheme
Independent Power Producer
Inter State Transmission System
Information Technology/ Information Technology
Services
Kilo-Volt Ampere
Kilo Watt
Kilo Watt Hour / Unit
Letter of Credit
Load Factor
Low Tension
Low Voltage
Marginal Cost of fund based Lending Rate
Maharashtra Electricity Regulatory Commission
Maharashtra Industrial Development Corporation
Management Information System
Merit Order Desptach
Ministry of Environment and Forest
Ministry of Power
Memorandum of Understanding
Mula Pravara Electric Cooperative Society Limited
Maharashtra State Electricity Board
Maharashtra State Electricity Board Holding Co. Ltd.
Maharashtra State Electricity Distribution Co. Ltd.
Maharashtra State Electricity Transmission Co. Ltd.
Maharashtra State Load Despatch Centre
Maharashtra State Power Generation Co. Ltd.
Mid Term Review
Million Units
Mega Watt
Multi Year Tariff
New Coal Distribution Policy
National Load Despatch Centre
Nuclear Power Corporation of India Limited
National Tariff Policy
January 20
Enabled
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Main Petition
LIST OF ABBREVIATIONS
Abbreviation
NTPC
O&M
OA
Opex
P&L
PD
PF
PFC
PGCIL
PLF
PoC
PPA
P:SI
P:IE
PWW
PXIL
R&M
RBI
RE
REC
RECL
RGGVY
RGPPL
RLC
RLDC
RoE
RPO
RTC
RSD
Rs.
SBAR
SBI
SBLC
SCADA
SD
SERC
MSEDCL
Expansion
National Thermal Power Corporation Limited
Operation and Maintenance
Open Access
Operational Expenditure
Profit and Loss
Permanent Disconnected
Power Factor
Power Finance Corporation
Power Grid Corporation of India Limited
Plant Load Factor
Point of Connection
Power Purchase Agreement
Project for System Improvement
Project for Intensive Electrification
Public Water Works
Power Exchange India Limited
Repair and Maintenance
Reserve Bank of India
Renewable Energy
Renewable Energy Certificates
Rural Electrification Corporation Ltd.
Rajeev Gandhi Grameen Vidyutikaran Yojana
Ratnagiri Gas and Power Pvt. Ltd.
Regulatory Liability Charge
Regional Load Desptach Centre
Return on Equity
Renewable Purchase Obligation
Round The Clock
Reserve Shutdown
Indian Rupees
State Bank Advance Rate
State Bank of India
Stand By Letter of Credit
Supervisory Control and Data Acquisition
Security Deposit
State Electricity Regulatory Commission
January 20
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LIST OF ABBREVIATIONS
Abbreviation
SEZ
SLDC
SMD
SOP
SSP
STP
STU
T&D
TC
ToD
TOSE
TSO
TSR
TSU
TTSC
UI
ULDC
UMPP
USO
VRS
V-CoS
Wef
WPI
WRLDC
WRPC
y-o-y
MSEDCL
Expansion
Special Economic Zone
State Load Despatch Centre
Simultaneous Maximum Demand
Standards of Performance
Sardar Sarovar Project
Sewage Treatment Plant
State Transmission Utility
Transmission and Distribution
Transmission Charge
Time-of-Day
Tax on Sale of Electricity
Temporary Supply Others
Temporary Supply Religious
Transmission System User
Total Transmission System Cost
Unscheduled Interchange
Unified Load Dispatch & Communication
Ultra Mega Power Projects
Universal Service Obligation
Voluntary Retirement Scheme
Voltage-wise Cost of Supply
With effect from
Wholesale Price Index
Western Regional Load Despatch Centre
Western Region Power Committee
Year on Year
January 20
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Main Petition
1
1.1
BACKGROUND
Introduction
1.1.1 Maharashtra State Electricity Distribution Co. Ltd. (hereinafter referred to as
“MSEDCL” or “The Company” or “The Petitioner”) has been incorporated under
the Companies Act, 1956 pursuant to decision of Government of Maharashtra
to reorganize erstwhile Maharashtra State Electricity Board (“MSEB”). The said
reorganization of the MSEB has been done by Government of Maharashtra
pursuant to “Part XIII – Reorganization of Board” read with section 131 of The
Electricity Act 2003. MSEDCL has been incorporated on 31.5.2005 with the
Registrar of Companies, and has obtained Certificate of Commencement of
Business on 15.09.2005. MSEDCL is functioning in accordance with the
provisions envisaged in the Electricity Act, 2003 (“the Act”) and is engaged,
within the framework of Electricity Act, 2003, in the business of distribution of
electricity to its consumers situated over the entire State of Maharashtra, except
Mumbai City & its suburbs (excluding Mulund & Bhandup).
1.1.2 The Maharashtra Electricity Regulatory Commission (hereinafter referred to as
“MERC” or “Hon’ble Commission”) is an independent statutory body constituted
under the provisions of the Electricity Regulatory Commissions (ERC) Act,
1998, which was superseded by Electricity Act (EA), 2003. Hon’ble Commission
is continued as provided under Section 82 of the EA, 2003. Hon’ble
Commission is vested with the authority regulating the power sector in the State
inter alia including setting of tariff for electricity consumers.
1.1.3 The Hon’ble Commission has issued MERC (Multi Year Tariff) Regulations
2019 (hereinafter to be referred to as MYT Regulations 2019) for the 4th Control
Period (FY 2020-21 to FY 2024-25) on 1st August 2019. These Regulations
have come into force from 1st August 2019.
1.2
Provisions of Law
1.2.1 The MERC (MYT) Regulations, 2019, issued by the Hon’ble Commission
provide the framework under which the licensees have to operate along with
determination of Aggregate Revenue Requirement, Tariff, etc. The MYT
Regulations 2019 provide for the Petitions to be filed in the Control Period.
MSEDCL
January 20
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Provisional True Up For FY 2019-20 and
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Main Petition
Regulation 5.1 (a) provides for Multi-Year Tariff Petition. The key provisions of
the said Regulation are reproduced below for reference.
5.1 The Petitions to be filed in the Control Period under these Regulations are
as under:
Multi-Year Tariff Petition, which is complete in all aspects as per these
Regulations, shall be filed by November 1, 2019 by Generating Companies and
Transmission Licensees and SLDC, and by November 30, 2019, by Distribution
Licensees, comprising:
Truing-up for FY 2017-18 and FY 2018-19 to be carried out under the
Maharashtra Electricity Regulatory Commission (Multi Year Tariff) Regulations,
2015:
Provided that the Commission may, if it considers appropriate, carry out the
Truing-up for years prior to FY 2017-18 under the Maharashtra Electricity
Regulatory Commission (Multi Year Tariff) Regulations, 2015, along with the
Truing-up for FY 2017-18, in case such Truing-up is yet to be completed;
Provisional Truing-up for FY 2019-20 to be carried out under the Maharashtra
Electricity Regulatory Commission (Multi Year Tariff) Regulations, 2015;
Aggregate Revenue Requirement for each year of the Control Period under
these Regulations;
Revenue from the sale of power at existing Tariffs and charges and projected
revenue gap for each year of the Control Period under these Regulations;
Proposed category-wise Tariff or Fees & Charges for each year of the Control
Period under these Regulations.
1.2.2 As per the provisions of Regulation 5.1(a) of the said Regulations, Distribution
Licensee has to file Multi-Year Tariff Petition (MYT Petition) by 30 th November
2019. Accordingly, MSEDCL has submitted its Multi-Year Tariff Petition on 26th
November 2019 as per provisions of MYT Regulations, 2019.
MSEDCL
January 20
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Provisional True Up For FY 2019-20 and
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Main Petition
1.3
MSEDCL Submission
1.3.1 Hon’ble Commission has issued Order dated 12th September 2018 in Case No.
195 of 2017 (herein after referred as “MTR Order”) for Truing-up of Aggregate
Revenue Requirement (ARR) of FY 2015-16 and FY 2016-17, Provisional
Truing-up of ARR of FY 2017-18 and Revised Projections of ARR for FY 201819 and FY 2019-20.
1.3.2 MSEDCL hereby submits the Petition under section 62 of the Electricity Act,
2003 and MERC (MYT) Regulations, 2019 for final True Up for FY 2017-18 &
FY 2018-19, provisional True Up for FY 2019-20 based on latest available
information for the year and Multi Year Tariff for the period FY 2020-21 to FY
2024-25 based on estimates/projections.. The Regulatory Formats are
annexed as Annexure 1 in (soft copy only) to this Petition. MSEDCL is also
submitting the Annual Accounts for the period 1st April 2017 to 31st March 2018
and 1st April 2018 to 31st March 2019 duly audited by the statutory auditors for
the purpose of truing up of expenses and revenue for FY 2017-18 and FY 201819 annexed as Annexure 2 and Annexure 3 respectively to this Petition.
1.3.3 MSEDCL is also filing the provisional True Up for FY 2019-20 based on latest
available information for FY 2019-20 and Multi Year Tariff for the period FY
2020-21 to FY 2024-25 based on the estimates/projections provided in this
Petition.
1.4
Appeal No. 280 of 2019 before Hon’ble APTEL, New Delhi
1.4.1 MSEDCL submits that on 29th October 2018, it has filed Petition for review of
certain aspects of the Mid Term Review (MTR) Order dated 12 September,
2018 in Case No.195 of 2017. Hon’ble Commission disposed of the said
Petition vide its Order No. 321 of 2018 dated 24th December 2018 and partly
allowed the certain contentions of MSEDCL. However, aggrieved by the rulings
of Hon’ble Commission, MSEDCL preferred an appeal before Hon’ble APTEL,
New Delhi (Appeal No. 280 of 2019) on following major grounds.

Non-consideration of MSEDCL proposal for revision in definition of Billing
Demand;
MSEDCL
January 20
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Main Petition


Capping Cross Subsidy Surcharge to 20% of Average Tariff
Non-consideration of approved trajectory of distribution loss for computation
of sharing of Gains & Losses for FY 2016-17;

Non-consideration of MSEDCL submission for mandatory Standby
Arrangement for SEZ and Deemed Licensees;
Difference in opening normative equity for FY 2015-16 as submitted in MTR
Petition and as approved in the MTR Order.

1.4.2 MSEDCL is submitting the current Petition without prejudice to any of its rights
and contentions taken by MSEDCL in said Appeal and MSEDCL reserves its
right to again approach the Hon’ble Commission depending upon the final
decision of Hon’ble APTEL New Delhi in said Appeal.
MSEDCL
January 20
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Provisional True Up For FY 2019-20 and
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Main Petition
2
2.1
REVISED O&M EXPENSES FOR FY 2015-16
Preamble
2.1.1 MSEDCL submits that in MTR Petition, it had submitted the reconciliation of
GFA and requested the Hon’ble Commission to approve an additional/
difference amount of Rs. 1135 Crore in the opening GFA of FY 2015-16. The
Hon’ble Commission in the MTR Order dated 12th September 2018 has
approved Rs. 927 Crore as against Rs. 1135 Crore. Accordingly, the normative
opening GFA (excluding GFA of DFs) of FY 2015-16 got revised to Rs. 40568
Crore (39641 + 927) for the purpose of computation of O&M expenses.
2.1.2 However, for the computation of O&M Expenses for FY 2015-16, the Hon’ble
Commission considered the same as Rs. 39641 Crore thereby missing out the
inclusion of Rs. 927 Crore in the opening GFA for computation of O&M
Expenses.
2.1.3 Aggrieved by this, MSEDCL had filed review of various aspects of Mid Term
Review Order along with above issue before the Hon’ble Commission (Case
No. 321 of 2018).
2.1.4 Hon’ble Commission vide its Order dated 24th December 2018 ruled that for the
computation of normative O&M Expenses for FY 2015-16, normative opening
GFA has been considered as Rs. 39641 Crore thereby excluded Rs. 927 Crore
in the opening GFA. Hon’ble Commission has also accepted that was an error
apparent from the face of record while considering the GFA for working out
such normative expense.
2.1.5 Hon’ble Commission in the said Order also ruled that normative opening GFA
to be considered for calculating normative O&M Expenses for FY 2015-16 is to
be corrected as Rs. 40568 Crore (Rs 39,641 Crs + Rs 927 Crs), and the O&M
expenses for FY 2015-16 has to be recalculated. Thus, the difference after
recalculation of O&M Expense that is to be allowed is Rs. 34 Crore. Also, the
consequent difference of Rs. 11 Crore in gains is to be passed on to the
consumers.
MSEDCL
January 20
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Provisional True Up For FY 2019-20 and
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Main Petition
2.2
Revised O&M Expenses for FY 2015-16
2.2.1 Accordingly, MSEDCL has calculated the revised O&M Expenses for FY 201516 as shown in following tables.
Table 1: O&M Expenses for Distribution Wires Business for FY 2015-16
FY 2015-16
S.No.
Particulars
Units
A)
Composite O&M Norms
1
O&M Expenses Norm specified in Regulations
1.1
1.2
1.3
2
2.1
2.2
2.3
B)
For Wheeled Energy
For No. of Consumers in Wires
Business
paise/kWh
For R&M Expenses
% of GFA
Rs Lakh/ '000 Consumers
MTR Order
True-Up
requirement
14.34
14.34
7.40
7.40
4.00%
4.00%
1,09,543.00
1,09,543.29
23,151.00
23,150.97
Difference
Parameters for O&M Expenses
Wheeled Energy
No. of Consumers in Wires
Business
MU
Opening GFA
Total O&M Expenses
Rs. Crore
35,677.00
36,511.30
Rs. Crore
4,711
4,744.47
'000 Consumers
33.37
Table 2: O&M Expenses for Retail Supply Business for FY 2015-16
FY 2015-16
S.No.
Particulars
Units
A)
Composite O&M Norms
1
O&M Expenses Norm specified in Regulations
1.1
1.2
1.3
2
For Sales in Supply Business
For No. of Consumers in Supply
Business
paise/kWh
For R&M Expenses
% of GFA
Rs Lakh/ '000 Consumers
MTR Order
True-Up
requirement
9.94
9.94
5.13
5.13
0.50%
0.50%
Parameters for O&M Expenses
2.1
Sales
MU
87,903.00
87,902.89
2.2
No. of Consumers in Supply Business
'000 Consumers
23,151.00
23,150.97
Rs. Crore
3,964.00
4,056.70
Rs. Crore
2,081.22
2,081.68
2.3
B)
Difference
Opening GFA
Total O&M Expenses
0.46
2.2.2 As these parameters need to be treated as controllable under the MYT
Regulations 2011, any variation in the actual expenses as against the
MSEDCL
January 20
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Provisional True Up For FY 2019-20 and
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Main Petition
permissible normative levels has been shared between MSEDCL and
consumers.
2.2.3 Regulation 14 of the MYT Regulations 2011 provides for the mechanism of
pass through of gains and losses on account of uncontrollable parameters, and
the mechanism for sharing of gains and losses on account of controllable
parameters. The actual O&M Expenses as per the Audited Accounts for FY
2015-16 are lower than that of allowed on normative basis. Hence, the sharing
of gains on account of O&M Expenses are summarized below;
Table 3: Sharing of gains on account of O&M Expenses FY 15-16
Rs. Crs
Particulars
O&M Expenses
Now
Revised for
MTR
6,826.16
FY 2015-16
Actual
Gains/ (Loss)
5,417.68
1,408.48
2/3 of
Efficiency
gains/Losses
938.99
1/3 of
Efficiency
Gains/Losses
469.49
Net Entitlement
after sharing
6,356.66
2.2.4 MSEDCL submits that the above mentioned O&M Expense (net entitlement
after sharing of gains) has been used as Base O&M Expenses for computing
the normative O&M Expenses for the 3rd Control Period.
2.2.5 MSEDCL further submits that Hon’ble Commission in its Order dated 24th
December 2018 in Case No. 321 of 2018 has also ruled as follows:
15. Further, the correction in GFA of FY 2015-16 and consequent change in
O&M expense of base year, i.e., FY 2015-16, has an overall impact on
computation of O&M Expenses for Ensuing Years i.e., FY 2016-17 to FY 201920. This also impacts the working of sharing of gains and loss during FY 201617. The impact of revision in O&M expense for FY 2016-17 to FY 2019-20 works
out to Rs. 104 Crore and the impact of incremental gain to be passed on to the
consumers as part of truing up of FY 2016-17 works out to Rs. 15 Crore.
Accordingly the same needs to be allowed under this review Order.
2.2.6 Accordingly, MSEDCL has computed the impact of lower O&M expenses
allowed for FY 2015-16 and its corresponding impact of on computation of O&M
Expenses for the period of FY 2016-17 to FY 2019-20 along with the carrying
cost separately in Chapter 8 and claimed separately under Additional Claims.
MSEDCL
January 20
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Provisional True Up For FY 2019-20 and
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Main Petition
3
3.1
IMPACT OF THE RECONCILIATION OF OPENING GFA
Preamble
3.1.1 MSEDCL submits that in MTR Petition, it had submitted the reconciliation of
GFA and requested the Hon’ble Commission to approve an additional/
difference amount of Rs. 1135 Crore in the opening GFA of FY 2015-16. The
Hon’ble Commission in the MTR Order dated 12th September 2018 has
approved Rs. 927 Crore against Rs. 1135 Crore claimed.
3.1.2 In the said Order, Hon’ble Commission had ruled that the capitalisation is
allowable and has to be added in the GFA. Hon’ble Commission in the said
Order also ruled that any consequent changes on account of the same in future
years as mentioned in the Order cannot be allowed as no such computation or
workings has been provided by MSEDCL.
3.1.3 Therefore, MSEDCL has computed the impact of reinstatement of GFA of Rs.
927 Crore and the computation/working is provided in the following paragraphs.
3.2
Gross Fixed Assets
3.2.1 Out of the approved Rs 927 Cr. the addition of Rs. 815 Crs is in FY 07-08 and
Rs. 112 Crs is in FY 11-12. Accordingly, MSEDCL has revised the GFA as
summarized in following table.
Table 4: Reinstatement of GFA
Opening Addition
Financial Year
GFA
to GFA
FY 2007-08
10,370.51 1,278.16
FY 2008-09
11,646.13 1,634.76
FY 2009-10
13,278.84 2,064.97
FY 2010-11
15,318.81 4,814.22
FY 2011-12
20,131.42 6,770.54
FY 2012-13
26,901.49 6,005.00
FY 2013-14
32,901.49 4,530.90
FY 2014-15
37,431.50 4,015.50
FY 2015-16
41,437.00 3,907.81
FY 2016-17
45,344.82 3,097.27
MSEDCL
January 20
Retirement
(2.54)
(2.05)
(25.00)
(1.61)
(0.47)
(5.00)
(0.89)
(10.00)
-
Rs.Crs
Closing
GFA
11,646.13
13,278.84
15,318.81
20,131.42
26,901.49
32,901.49
37,431.50
41,437.00
45,344.82
48,442.09
8
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Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
3.2.2 MSEDCL submits that for FY 2007-08, MSEDCL has added Rs. 815 Crs to the
approved capitalization. The amount of grant is considered same as that
approved by Hon’ble Commission. However, the amount of consumer
contribution is considered as per the Audited Accounts for FY 2007-08 as
mentioned by the Hon’ble Commission in the Tariff Order in Case No. 116 of
2008 (Refer Page No.90 of 249 of the said Order) Further, the Debt: Equity
ratio approved for FY 2007-08 has been considered for the computation of
funding of capitalization.
3.2.3 Accordingly, a comparison of the capitalization and funding of the capitalization
approved by Hon’ble Commission previously and now revised by MSEDCL in
view of approval of Rs 815 Crs for FY 2007-08 is provided in following table.
Table 5: Comparison of the capitalization and funding of the capitalization for FY 07-08
Rs. Crs
MERC
MSEDCL
Case No. 116 of 2008
Now Revised
TOTAL CAPITALISATION
463.16
1,278.16
Less : GRANT
59.03
59.03
Less : CONSUMER CONTRIBUTION
153.13
366.24
FUND REQUIREMENT
251.00
852.89
EQUITY %
9.84%
9.84%
DEBT %
90.16%
90.16%
EQUITY
24.70
83.92
DEBT
226.30
768.97
Particulars
3.2.4 This revised Debt and Equity has been added to the respective closing balance
of normative loan and equity approved by Hon’ble Commission in its Order in
Case No.116 of 2008.
3.2.5 MSEDCL further submits that the Hon’ble Commission has already approved
the resultant impact due to above difference on Capex related expenses for FY
07-08 in Case No. 121 of 2014. So, MSEDCL has not claimed the same in this
Petition being already approved.
3.2.6 MSEDCL most earnestly requests the Hon’ble Commission to approve the
MSEDCL
January 20
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Provisional True Up For FY 2019-20 and
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Main Petition
revision in GFA and normative loan & equity for MSEDCL as computed above.
3.3
Depreciation
3.3.1 MSEDCL submits that considering the revised opening GFA and approved
Depreciation rates for the respective year, it has computed the revised
deprecation. For FY 11-12 and FY 12-13, it has also considered the impact of
Advance against Depreciation (AAD). Further, for FY 14-15, MSEDCL has
computed the depreciation on pro-rata basis similar to the methodology
adopted by Hon’ble Commission.
Table 6: Impact of Reinstatement of GFA on Depreciation
Rs. Crs
Revised
Approved
Approved
Approved
Revised
Impact to
Opening Depreciation
Opening GFA Depreciation
Depreciation be Claimed
GFA
Rate
(a)
(b)
(c )
(d )
(e)=(c)* ( d) ( f) =(e)-(b)
FY 2008-09
10,831.13
430.00 11,646.13
3.97%
462.36
32.36
FY 2009-10
12,463.84
511.00 13,278.84
4.10%
544.41
33.41
FY 2010-11
14,503.81
616.83 15,318.81
4.25%
651.49
34.66
FY 2011-12^
19,316.42
892.75 20,131.42
4.29%
892.75
FY 2012-13^
25,974.49
1,235.00 26,901.49
4.08%
1,235.00
FY 2013-14
31,974.49
1,611.00 32,901.49
5.04%
1,657.71
46.71
FY 2014-15*
36,504.50
1,620.00 37,431.50
4.44%
1,638.39
18.39
FY 2015-16
41,437.00
1,856.00 41,437.00
4.48%
1,856.00
FY 2016-17
45,344.82
2,023.25 45,344.82
4.46%
2,023.29
0.04
Total
165.57
^ Incl. impact of AAD
* Prorata as per MERC Method
Financial Year
3.3.2 MSEDCL most earnestly requests the Hon’ble Commission to approve the
resultant impact of Rs. 165.57 Crs on depreciation as computed above.
3.4
Interest on Long Term Loans
3.4.1 MSEDCL submits that considering the revised normative opening balance of
Loans, revised addition to the normative loans, revised repayment (equal to
revised depreciation) and approved interest rates for the respective year,
MSEDCL has computed the revised interest expenses. Additionally for FY 1314, MSEDCL has considered the impact of interest capitalized as approved by
Hon’ble Commission.
MSEDCL
January 20
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Main Petition
3.4.2 MSEDCL further submits that Hon’ble Commission in its Order in Case No. 38
of 2014 has erred in calculating the closing balance of normative loan for FY
12-13. MSEDCL has corrected the said error while computing the closing
balance of normative loan for FY 12-13.
Table 7: Revised Normative Loan Balance for FY 12-13
Particulars
FY 2012-13 (Rs. Crs)
(Table 88 Page No.114 of 148)
Approved
Corrected
Opening balance of Normative Loan
9,518
9,518
Addition to Normative Loan
4,720
4,720
Repayment of Normative Loan
(1,061)
(1,061)
Closing Balance of Normative Loan
13,117
13,177
3.4.3 The impact of reinstatement of GFA on interest on loans is summarized in
following table.
Table 8: Impact of Reinstatement of GFA on Interest on Loans
Financial Year
Approved
Interest
Expenses
(a)
FY 2008-09
274.00
FY 2009-10
318.00
FY 2010-11
480.67
FY 2011-12
836.16
FY 2012-13
1,304.00
FY 2013-14^
1,469.00
FY 2014-15
1,677.00
FY 2015-16
1,701.00
FY 2016-17
1,588.03
Total
^ Incl. Interest capitalised
Rs. Crs
Revised
Revised
Opening Addition to
Closing
Approved
Revised
Impact to
Balance of Normative Repayment
Balance of
Interest
Interest
be
Normative
Loan
Normative
Rate
Expenses
Claimed
Loan
Loan
(b)
(c )
(d)
( e) =(b) +(c )-(d)
(f)
(g)=Avg(a,b)*(f) (h)=(g)-(a)
3,026.71
619.16
-462.36
3,183.51
10.63%
329.94
55.94
3,183.51
1,248.00
-544.41
3,887.10
10.45%
369.60
51.60
3,887.10
2,981.07
-651.49
6,216.68
10.47%
528.77
48.10
6,216.68
4,550.71
-862.87
9,904.51
10.95%
882.67
46.51
9,904.51
4,720.00
-1,098.87
13,525.65
11.51%
1,348.71
44.71
13,525.65
2,424.00
-1,657.71
14,291.94
11.86%
1,510.06
41.06
14,291.94
2,105.94
-1,638.39
14,759.49
11.80%
1,714.00
37.00
14,759.49
1,800.00
-1,856.00
14,703.49
11.79%
1,736.88
35.88
14,703.49
1,239.24
-2,023.29
13,919.44
11.37%
1,627.21
39.18
399.99
3.4.4 MSEDCL most earnestly requests the Hon’ble Commission to approve the
impact on interest on loans of Rs. 399.99 Crs as computed above.
3.5
Return on Equity
3.5.1 MSEDCL submits that due to the revision in opening balance of equity and
MSEDCL
January 20
11
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
revised addition to the equity, MSEDCL has computed the revised return on
equity considering approved rate of return on equity.
3.5.2 It is pertinent to note that Hon’ble Commission has approved Rs. 8589 Crs as
closing balance of normative equity for wire business for FY 14-15 in Case No.
48 of 2016 (Refer Page 134 of 617 of said Order). However, in Case No. 195
of 2017, Hon’ble Commission has considered Rs. 8713 Crs as opening balance
of normative equity for wire business for FY 15-16 (Refer Page 183 of 638 of
said Order). Similar is the case with supply business. MSEDCL submits that it
has corrected the said errors and considered the opening balance of normative
equity for FY 15-16 as closing balance of normative equity for FY 14-15 for wire
and supply business.
3.5.3 The impact of reinstatement of GFA on return on equity is summarized in
following table.
Table 9: Impact of Reinstatement of GFA on Return on Equity
Financial Year
FY 2008-09
FY 2009-10
FY 2010-11
FY 2011-12
FY 2012-13
Wires Business
FY 2013-14
FY 2014-15
FY 2015-16
FY 2016-17
Supply Business
FY 2013-14
FY 2014-15
FY 2015-16
FY 2016-17
Total
Approved
Return
on Equity
(a)
518.58
550.64
663.63
914.21
1,139.78
1,133.44
1,269.06
1,396.86
1,480.79
142.28
159.08
175.18
185.68
Rs. Crs
Revised
Revised
Opening
Equity
Addition to
Closing
Approved
Impact to
Balance
portion of
Revised Return
Normative
Balance of
Rate of
be
of
Retirement
on Equity
Equity
Normative
ROE
Claimed
Normative
of Assets
Equity
Equity
(b)
(c )
(d)
( e) =(b) +(c )-(d)
(f)
(g)=(b)*(f)+(c)*(f)/2 (h)=(g)-(a)
3,167.85
265.00
3,432.85
16%
528.06
9.48
3,432.85
135.00
3,567.85
16%
560.06
9.42
3,567.85
1,277.60
4,845.45
16%
673.06
9.43
4,845.45
1,854.79
0.13
6,700.37
16%
923.65
9.43
6,700.11
966.00
0.80
7,666.91
16%
1,149.23
9.46
6,898.78
935.00
7,833.78
15.50%
1,141.77
8.34
7,833.78
812.29
3.04
8,649.11
15.50%
1,276.95
7.89
8,643.04
598.50
9,241.54
15.50%
1,386.05
-10.81
9,241.54
477.99
15.50%
1,469.48
-11.31
766.53
870.53
960.79
1,027.29
104.00
90.25
66.50
53.11
-
870.53
960.79
1,027.29
1,080.40
17.50%
17.50%
17.50%
17.50%
143.24
160.24
173.96
184.42
0.97
1.17
-1.22
-1.25
40.99
3.5.4 MSEDCL most earnestly requests the Hon’ble Commission to approve the
impact on return on equity amounting to Rs. 40.99 Crs as computed above.
MSEDCL
January 20
12
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
3.6
Summary of impact of reinstatement of GFA
3.6.1 Considering the above, MSEDCL has summarized the total impact of
reinstatement of GFA by Rs. 927 Crs in following table.
Table 10: Summary of Impact of Reinstatement of GFA
Financial Year Depreciation Interest on Loan
FY 2008-09
32.36
55.94
FY 2009-10
33.41
51.60
FY 2010-11
34.66
48.10
FY 2011-12
46.51
FY 2012-13
44.71
FY 2013-14
46.71
41.06
FY 2014-15
18.39
37.00
FY 2015-16
35.88
FY 2016-17
0.04
39.18
Grand Total
165.57
399.99
Rs. Crs
Return on Equity Total
9.48
97.78
9.42
94.44
9.43
92.19
9.43
55.95
9.46
54.17
9.30
97.07
9.06
64.45
(12.02)
23.86
(12.56)
26.65
40.99 606.55
3.6.2 MSEDCL requests the Hon’ble Commission to allow Rs. 606.55 Crs towards
the impact on depreciation, interest on long term loans and return on equity due
to reinstatement of GFA as submitted above.
3.6.3 MSEDCL further submits that the detailed computations of the impact on
depreciation, Interest on loan and return on equity due to reinstatement of GFA
of Rs. 927 Crs have also been provided in a separate form along with the
Regulatory Formats.
3.6.4 MSEDCL submits that the impact of reinstatement of GFA of Rs. 927 Crore
along with the carrying cost has been claimed separately at Chapter 8 under
Additional Claims.
MSEDCL
January 20
13
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
4
4.1
FINAL TRUE UP FOR FY 2017-18
Preamble
4.1.1 This section outlines the actual performance of MSEDCL for the FY 2017-18.
MSEDCL hereby submits final True Up for FY 2017-18 comparing the actual
audited data for FY 2017-18 with those approved by the Hon’ble Commission
vide MTR Order dated 12th September 2018 in Case no. 195 of 2017.
4.1.2 The Board of Directors of MSEDCL has approved the Audited Annual Accounts
for the period April 2017 to March 2018 and Statutory Auditors M/s. SGCO &
Co. LLP, M/s. Shah & Taparia, and M/s CNK & Associates LLP have audited
the Accounts vide report dated 10/10/2018 attached as Annexure 2 to this
Petition. MSEDCL hereby proposes to true up its expenses and revenues
based on the said Audited Accounts.
4.1.3 Following sections outline the deviations in actual expenses/revenue for FY
2017-18 based on the Audited Accounts of MSEDCL in comparison with the
expenses/revenue approved by the Hon’ble Commission vide MTR Order
dated 12th September 2018.
4.2
Category Wise Sales for FY 2017-18
4.2.1 Category wise actual sales for FY 2017-18 for MSEDCL excluding all
Distribution Franchisee have been summarized in the following table:
Table 11: Category wise sales for FY 17-18
Category
Residential
Commercial
HT-Industrial
LT-Industrial
PWW
Street Light
Agriculture
Public Services
Railways
Others
MSEDCL Excl. DF
MSEDCL
FY 2017-18
(Approved)
18,825.66
6,922.78
28,110.25
6,488.27
2,236.92
1,761.78
29,502.64
1,383.59
59.25
659.65
95,950.79
Sales (MUs)
FY 2017-18
(Actual)
18,997.48
6,968.61
28,118.42
6,403.84
2,227.85
1,788.24
30,678.01
1,388.23
59.25
670.20
97,300.14
January 20
Deviation
171.82
45.83
8.17
(84.43)
(9.07)
26.46
1,175.37
4.64
(0.00)
10.55
1,349.35
14
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
4.2.2 MSEDCL submits that during the MTR Process, it had submitted the provisional
information available for FY 17-18 at the time of filing of the MTR Petition.
Subsequently, the actual figures were available and Audited Accounts for FY
17-18 of MSEDCL were finalized. Accordingly, MSEDCL’s actual Sales for FY
2017-18 is 97,300.14 MUs (excluding the Franchisee Sales).
4.2.3 MSEDCL most earnestly requests the Hon’ble Commission to approve the
Sales for FY 17-18 as submitted above.
4.3
Distribution Losses for FY 2017-18
4.3.1 In MYT Order dated 3rd November, 2016 in Case No. 48 of 2016, the Hon’ble
Commission had approved distribution loss of 16.26% (excluding EHV Sales)
for FY 17-18. The actual distribution loss (excluding EHV sales) achieved by
MSEDCL for FY 2017-18 is 14.82% which is (1.44%) less than the Distribution
Loss level approved by Hon’ble Commission.
Table 12: Distribution Losses for FY 17-18
Particulars
Distribution Loss
FY 2017-18
(Approved)
16.26%
FY 2017-18
(Actual)
14.82%
Deviation
(1.44%)
4.3.2 MSEDCL endeavours for taking Distribution Losses to the lowest possible level.
MSEDCL has achieved a significant reduction in distribution losses during
recent years. However, loss reduction is a slow process and becomes
increasingly difficult as the loss levels come down. The change in sales mix
also impacts the distribution losses. MSEDCL requests the Hon’ble
Commission to approve the actual Distribution Loss as achieved by MSEDCL.
4.4
Energy Balance for FY 2017-18
4.4.1 The quantum of sales as shown in Table 11 is 97,300.14 MUs, representing
the sales of MSEDCL excluding the sales in the areas served by Distribution
Franchisees. As per the methodology adopted by Hon’ble Commission for
calculating energy balance of MSEDCL as a whole, the sale to the consumers
within the Distribution Franchisee area has also been considered. Therefore,
MSEDCL
January 20
15
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
energy available for sale for FY 2017-18 is computed as below:
Table 13: Energy Available for Sales for FY 17-18
MUs
FY 2017-18
(Approved)
95,950.79
4,436.88
Particulars
Energy Sales by MSEDCL for FY 2017-18
Add: Category wise sales in DF area
Add: Solar Offset Units
Add: OA Sales (Conventional)
Add: Renewable OA
Total Energy Sales
4,330.00
679.00
1,05,396.67
FY 2017-18
(Actual)
97,300.14
4,372.89
18.17
4,303.33
676.51
1,06,671.04
Deviation
1,349.35
(63.99)
18.17
(26.67)
(2.49)
1,274.37
4.4.2 MSEDCL submits that the total energy sales for FY 2017-18 is 1,06,671.04
MUs as compared to 1,05,396.67 MUs which was approved by the Hon’ble
Commission in MTR Order dated 12th September 2018. The Hon’ble
Commission is requested to allow the same.
4.4.3 MSEDCL further submits that it is procuring power from various Sources
including MSPGCL, CGS including nuclear power plants, Traders, IPPs and
Renewable Sources. It would be very difficult to differentiate which power is
coming from which source at Transmission periphery. Hence an average interstate loss for the whole year is considered for power sourced from outside the
State of Maharashtra.
4.4.4 MSEDCL also submits that data of metered energy is available at 3 points: at
bus-bar of the generating station, at T <> D interface i.e. at Distribution
Periphery and sales at consumer end. It is further to state that to calculate
Distribution Loss, it considers metered energy.
4.4.5 MSEDCL submits that power purchased or scheduled from Inter State
Transmission network is scheduled by Western Region Load Dispatch Center.
The power purchase from inter State can be group under following categories.
Type
(Inter State Generating Station ) ISGS
Long Term Access (LTA) i.e. IPP
STOA
MSEDCL
Purchase Include power from
NTPC, NPCIL, SSP, Pench, CGPL
EMCO
Short term bilateral power purchase,
January 20
16
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Type
Purchase Include power from
Power purchase through Power
Market
like
IEX,
Banking
Arrangement.
4.4.6 MSEDCL submits that based on the power scheduled at generator bus for
Maharashtra is available as Full Schedule on WRLDC web based scheduling
software. Similarly power schedule at Maharashtra state periphery are
available as Net schedule on WRLDC web based scheduling software.
4.4.7 In case of Tarapur Atomic Power Station of NPCIL (TAPS 1&2) which is
considered as ISGS station but connected to Maharashtra State STU network
for power evacuation. Hence for scheduling of power to Maharashtra, no PoC /
scheduling loss is considered. Similarly, EMCO Warora is located in
Maharashtra but this generating station is connected to ISTS network. Hence
power is scheduled by WRLDC.
4.4.8 For interstate loss computation, power scheduled from ISGS station, CGPL,
EMCO, SSP, Pench & short term through Inter-state network i.e. whose
scheduling done by RLDC is taken into consideration.
4.4.9 MSEDCL also purchase power from power market mainly Indian Energy
Exchange as per requirement to meet demand or for cost optimization. The
power purchase from Indian Energy Exchange is at Regional periphery and
drawal losses are applicable for energy purchased from IEX to compute energy
available at Maharashtra State periphery.
4.4.10 Further MSEDCL also had agreements for banking of power from States like
Haryana, Himachal Pradesh, and UPPCL etc. In banking arrangement, Power
transactions are settled at Regional Periphery and concern DISCOMs has to
bear Drawal loss when receiving power from other DISCOM and has to bear
injection loss when delivering power to other DISCOM.
4.4.11 MSEDCL submits that the surplus power traded at Exchange is billed at
Regional Periphery and bilateral power traded is billed at STU periphery. The
MSEDCL
January 20
17
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
quantum of 985 MUs shown under ‘Surplus Energy Traded’ is the actual
energy traded by MSEDCL at STU periphery during FY 17-18.
4.4.12 As per latest DSR available, UI for FY 17-18 is considered as (1,413.85) MUs.
MSEDCL submits that the WRLDC provides web based scheduling reports on
HTTP://SCHEDULING.WRLDC.IN/WBES/ACCOUNT/LOGIN. This site provides the
details of full schedule and net schedule from each Inter State Generating
Station (ISGS). The WRLDC uses this data for loss calculation. Further, WRPC
prepares the REA from this data which forms the basis of billing for ISGS.
MSEDCL prepared the cumulative information for FY 17-18 based on these
reports. Considering the energy at ex bus bar and energy received at STU
periphery from these reports, MSEDCL has considered the inter-state
transmission losses as 3.54%.
Source of Power (Station wise)
NTPC
NPCIL
SSP
Pench
Mundra UMPP
EMCO Power (Own Station)
EMCO Power (Alternate source)
Short Term Power Purchase
Total Power Scheduled from Inter State Source
At regional
Periphery
(MUs)
30116.16
2590.66
245.60
50.68
4990.04
1188.68
71.95
4432.99
43686.75
Energy Received
at State
Periphery (MUs)
28904.84
2537.05
237.99
48.59
4813.90
1138.83
71.95
4386.08
42139.23
Interstate
Loss
4.0%
2.1%
3.1%
4.1%
3.5%
4.2%
0.0%
1.1%
3.54%
4.4.13 MSEDCL further submits that the MSLDC computes the Intra State
Transmission System (InSTS) Grid Loss based on the Energy Input and Energy
Output. This is grid loss for the Maharashtra Transmission System and not for
MSEDCL. Hence, considering the fact that Grid Loss can’t be same for all
Distribution Licensees, MSEDCL has computed Intra-State losses. Power
purchase, sales and energy at Distribution Periphery being metered figures in
this petition, Intra State losses is the number which is required to be computed.
MSEDCL
January 20
18
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
4.4.14 MSEDCL submits that the open access consumption takes place at different
voltages viz. 11 kV, 22 kV, 33 kV and EHV level. Hon’ble Commission has been
allowing the wheeling losses of 9%, 7.5%, 6% and 0% respectively for these
voltage levels. Further, Intra State transmission loss for Maharashtra System is
3.30%. In view of these losses and consumption, MSEDCL has considered a
normative loss of 6%. It is pertinent to note that Hon’ble Commission in the
previous 3 to 4 Tariff Orders, has been computing the input for OA consumption
by taking loss level of 6%. In line with the same, MSEDCL has considered the
loss of 6% for computing the input for OA consumption.
4.4.15 Considering the energy available for sale for FY 2017-18 as shown in Table 13,
the energy balance for MSEDCL is calculated. The following table shows the
energy balance for FY 17-18.
Table 14: Energy Balance for FY 17-18
Sr. No.
1
3
4
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
Particulars
LT Sales (Including D.F)
HT Sales excluding EHV level sales (Including D.F)
HT/LTIP Credit Sales and HT/LT Offset Export Solar units
Total Sales including D.F (Excluding EHV Sales)
OA Sales (Renewables)
OA Sales (Conventional)
Retail Energy Sale to Consumers (Excluding EHV Sales)
Total Power Purchase
Power Purchase Quantum from Intra-State sources
Power Purchase Quantum from Inter-State sources
Inter-State Losses
Power Purchase Quantum from Inter-State sources at MS Periphery
Add: FBSM
Power Quantum handled at Maharashtra Periphery
Infirm Non-PPA Wind Power
Input for OA Consumption
Total Power Purchase Quantum Handled
Surplus Power Traded
Energy Requirement at G<>T Periphery
Intra-State Transmission Loss
Intra-State Transmission Loss
Net Energy requirement at T<>D Periphery
EHV Sales
Net Energy Available for Sale at 33kV
Energy injected and drawn at 33kV
Total Energy Available for Sale at 33kV (Metered Energy at EHV and
33 kV Input)
Distribution Loss (Excl. EHV Sales)
Distribution Loss (Excl. EHV Sales)
Calculation
UoM
a
b
c
d=a+b+c
e
f
A=d+e+f
B=g+h
g
h
i
j=h*(1-i)
k
l=g+j+k
m
n=f/(1-6%)
o=l+m+n-w
p
q=o-p
r
s=q*r
t=q-s
u
v=t-u
w
MU
MU
MU
MU
MU
MU
MU
MU
MU
MU
%
MU
C=v+w
MU
D=C-A
E=D/C
MU
%
MU
MU
MU
MU
MU
MU
%
MU
MU
MU
MU
MU
FY 2017-18
MTR Order
Actual
66,874
65,600
27,075
27,082
18
92,683
93,967
677
679
4,303
4,330
97,692
98,947
1,25,422
1,27,311
83,616
82,115
43,696
43,307
3.54%
3.47%
42,149
41,806
(1,413.85)
1,23,921
1,24,351
720
4,578
4,606
1,29,159
1,28,039
985
580
1,28,174
1,27,459
3.72%
3.30%
4,772
4,206
1,23,402
1,23,253
7,724
7,705
1,15,678
1,15,548
490
488
1,16,036
18,344
15.81%
1,16,168
17,221
14.82%
4.4.16 MSEDCL further submits that the FBSM has not been finalized after February
2018. MSEDCL most earnestly submits that it has been more than 1.5 years
since the FBSM was finalized. MSEDCL requests the Hon’ble Commission to
MSEDCL
January 20
19
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
direct SLDC to finalize the FBSM on regular basis so the exact impact of the
quantum as well as cost can be considered in Tariff Petitions.
4.4.17 MSEDCL requests the Hon’ble Commission to approve the Energy Balance for
FY 17-18 as submitted by MSEDCL in above table.
4.5
Power Purchase Expenses for FY 2017-18
4.5.1 MSEDCL has following sources of firm power viz.
 Maharashtra State Power Generation Company Limited (MSPGCL)


Purchase from Central Generating Stations
JSW (Ratnagiri)


Mundra UMPP CGPL
Adani Power Limited


RattanIndia Limited
Emco Power Limited etc.
4.5.2 MSEDCL also buys power from other sources such as Sardar Sarovar and
Pench Hydro project, renewable sources including co-generation, Wind power
and Solar.
4.5.3 In addition to the above sources, In case of any shortfall from approved
sources, when demand exceeds availability or for cost optimization, MSEDCL
sources power from exchange/Traders or other sources at the market price
through competitive bidding in accordance with the Guidelines of MoP.
4.5.4 Following table summarizes the source wise power purchase done by MSEDCL
during the FY 17-18.
MSEDCL
January 20
20
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 15: Power Purchase Expenses for FY 17-18
Source
MSPGCL
NTPC
NPCIL
SSP
Pench
Dodson
JSW
CGPL
Adani Power
EMCO Power
Rattan India
Renewable
Traders
RECs
Short provision for PP
Other Adjsutments
PGCIL Charges
FBSM
Intra State Purchase
Rebate
Total Power Purchase
PP Quantum (MUs)
PP Cost (Rs. Cost)
PP Cost (Rs. /Unit)
Approved
Approved in
Approved in
in MTR
Actual
Deviation
Actual
Deviation
Actual
Deviation
MTR Order
MTR Order
Order
48,842.89
48,842.89
18,625.24
17,405.35
(1,219.88)
3.81
3.56
(0.25)
30,116.27
30,116.28
0.01
8,242.51
8,284.33
41.82
2.74
2.75
0.01
2,588.55
2,590.66
2.11
757.77
750.10
(7.67)
2.93
2.90
(0.03)
245.60
245.60
50.35
50.42
0.07
2.05
2.05
0.00
50.55
50.68
0.13
10.36
10.36
0.00
2.05
2.04
(0.01)
82.53
82.53
21.90
21.90
2.65
2.65
1,898.92
1,898.92
548.18
548.18
2.89
2.89
4,990.04
4,990.04
1,275.01
1,210.93
(64.08)
2.56
2.43
(0.13)
17,256.53
17,256.53
6,158.71
6,646.40
487.69
3.57
3.85
0.28
1,260.62
1,260.62
532.37
495.17
(37.20)
4.22
3.93
(0.30)
4,347.12
4,347.12
2,149.87
2,157.24
7.37
4.95
4.96
0.02
11,046.27
11,187.72
141.45
6,245.18
6,324.76
79.58
5.65
5.65
(0.00)
4,055.75
4,056.25
0.50
1,495.16
1,495.37
0.22
3.69
3.69
0.00
689.13
482.53
(206.60)
430.56
430.56
36.36
94.01
57.65
2,558.82
2,557.96
(0.86)
(1,359.28)
(1,413.85)
(54.57)
(267.17)
(267.21)
(0.05)
1.97
1.89
(0.08)
4.57
4.57
(280.31)
(280.31)
1,25,422
1,25,512
90
49,130
48,423
(707)
3.92
3.86
(0.06)
4.5.5 In the following paragraphs, MSEDCL has given the detailed reasons for
variation in the power purchase quantum and cost.
a) MSPGCL: Hon’ble Commission in its MTR Order dated 12th September
2018 in Case No. 196 of 2017 for MSPGCL had approved the total
revenue surplus of Rs. 1275.12 Crore including holding cost, after final
true-up for FY 2015-16 and FY 2016-17 and provisional true-up for FY
2017-18. As per the IndAS 10, significant financial events that occur after
reporting period, but prior to the issue of financial statements need to be
considered in final Accounting Statements. Accordingly, MSEDCL has
considered the surplus of Rs. 1275.12 Crore for MSPGCL. Further,
MSEDCL had received supplementary bill of Rs. 55.11 Crs for April 17
to Mar 18 from MSPGCL.
b) NTPC: MSEDCL has considered the NVVNL bundled power from NTPC.
c) NPCIL: It is the amount received for Power Supply of Auxiliary
Consumption from Apr16 to Sept 17.
d) CGPL: An amount of Rs. 65 Crs was booked as a provision for FY 1617. However the provision so made for Mar-17 of Rs. 65 Crs was
reversed after MTR petition was filed.
e) Adani Power Maharashtra Limited: Hon’ble Commission has issued the
Order on 19th April 2018 in Case No. 102 of 2016 and approved the
MSEDCL
January 20
21
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
f)
g)
h)
i)
j)
k)
l)
compensation in Tariff on account of Change in Law in respect of 800
MW out of 1320 MW power contracted under PPA dated 08.09.2008.
MSEDCL considered the same.
EMCO Power: STOA/ MTOA credit passed on by GMR to MSEDCL
along with interest amounting to Rs. 38 Crs. which was not available at
time of MTR Petition.
RattanIndia Power: An amount of Rs. 9.91 Crs was booked provisionally
towards change in law of RIPL as per Order in Case No. 84 of 2016.
Subsequently, the claim finalized at 17.28 Crs. Hence there is increase
in cost of RIPL by Rs. 7.37 Crs. as compared to MTR approved cost.
Renewable Energy: Wind Energy injected in FY 2014-15 & FY 2015-16
considered in FY 2017-18 due to execution of EPA in Mar & Aug 17.
Rebate: As per the IndAS, the rebate received from power generators
for prompt payments is shown in the power purchase only, instead of
earlier practice of showing in Non-Tariff Income.
RECs: MSEDCL has procured Solar and Non-Solar RECs for fulfilment
of RPO. At the time of submission of provisional information for FY
2017-18, MSEDCL had submitted Rs. 689 Crs towards REC purchase
for meeting shortfall in Non-Solar RPO Target. In FY 17-18, MSEDCL
has withdrawn the provision amounting to Rs. 206 Crs made for RECs
in FY 16-17.
Short Provisions: The short provision of Rs. 521 Crs during FY 16-17
and Short provision of Rs. (90.53) Crs for FBSM for FY 16-17 included
in short provisions while finalizing the Accounts for FY 17-18.
Other Adjustments include Rs. 100 Crs of EMCO Power related to FY
15-16, FBSM of Rs. (43) Crs for FY 16-17 and Rs. 36 Crs paid to
RGPPL. MSEDCL has paid Rs. 36 Crs towards adjustment of Electrical
charges of Shirala Water Pump related to RGPPL.
4.5.6 Details of RE Purchase for FY 17-18 are tabulated below:
Source
Wind
SHP
MSEDCL
FY 2017-18
Quantum (MU)
Cost (in Rs. Crs.)
6331.68
3198.77
229.07
95.73
January 20
22
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Source
Bagasse based Cogen.
Biomass
MSW
Non-Solar RECs
Total Non-Solar
SPV
Total Solar
FY 2017-18
Quantum (MU)
Cost (in Rs. Crs.)
3381.42
2104.96
428.74
284.63
0.18
0.09
2,872
482.53
10,371.09
6,166.71
816.63
640.57
816.63
640.57
4.5.7 During FY 2017-18, MSEDCL has fulfilled non-Solar RPO Target and with
surplus of 55.151 MU and has the shortfall of 2147.016 MUs in fulfilling
cumulative Solar RPO Target till FY 2017-18 including the standalone shortfall
of 1476 MUs for FY 2017-18.
4.5.8 MSEDCL requests the Hon’ble Commission to approve the power purchase
expenses as per Audited Accounts.
4.6
Intra State Transmission Charges for FY 2017-18
4.6.1 MSEDCL submits the actual transmission charges and SLDC charges paid to
MSETCL and MSLDC as summarized in following table.
Table 16: Transmission Charges for FY 2017-18
Rs. Crs
Particulars
Intra-State Transmission Charges
MSLDC Charges
Total
FY 2017-18
(Approved)
4,796.64
15.53
4,812.17
FY 2017-18
(Actual)
4,796.64
15.53
4,812.17
Deviation
-
4.6.2 MSEDCL submits that it pays the transmission charges to STU as per the
InSTS Order issues by Hon’ble Commission from time to time. MSEDCL
requests the Hon’ble Commission to approve the actual Transmission and
MSLDC Charges as per the Audited Accounts.
MSEDCL
January 20
23
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
4.7
Fixed Costs for FY 2017-18
4.7.1 Based on the Capital Cost and the consequent Capitalized Expenditure, Equity
Component and Normative Debt, the fixed cost of MSEDCL for FY 2017-18
(excluding fixed components of PP cost) has been determined in accordance
with the provisions of MYT Regulations 2015 outlined thereof. As outlined under
the regulations, the fixed cost for MSEDCL has been determined under the
following major heads long with other items of expenditure:
•
Operation and Maintenance Expenses
•
Depreciation
•
Interest and Finance Charges
•
Interest on Working Capital
•
Income Tax
•
Return on Equity
4.7.2 Net Annual Revenue Requirement has been computed after netting off
Expenses capitalized.
4.7.3 Head wise comparison has been made between the values approved by the
Hon’ble Commission vide MTR Order dated 12th September 2018 in Case no.
195 of 2017 for FY 2017-18 and the values as per the audited accounts.
4.8
Actual Operation & Maintenance Expenses for FY 2017-18
4.8.1 Operations and Maintenance (O&M) Expenses of the company consists of the
following elements viz. Employee Expenses, Administrative and General
Expenses and Repairs and Maintenance Expenses.
4.8.2 The following table provides the actual O&M Expenses (net of Capitalization)
for the FY 2017-18.
Table 17: Actual O&M Expenses for FY 2017-18
Particulars
Actual O&M Expenses
MSEDCL
January 20
Rs. Crs
Actual
5,658.28
24
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
4.8.3 Head-wise details of employee expenses, A&G Expenses and R&M Expenses
have been provided in Regulatory Formats.
4.8.4 The following paragraphs provide the detailed reasons for change in actual
O&M expenses for FY 17-18 over FY 16-17.
4.8.5 Following table provides the comparison of actual O&M expenses for FY 17-18
and FY 16-17.
Rs. Crs
Sr. No.
1
2
3
Particulars
Employee Exp. (Net)
A & G Exp. (Net)
R & M Exp.
Total O & M Exp.
2016-17
4292.21
727.13
777.35
5796.69
2017-18
4157.45
684.76
816.07
5658.28
Diff.
( 134.76)
( 42.37)
38.72
( 138.41)
4.8.6 There is a reduction of Rs. 138.41 Crs in O&M Expenses for FY 17-18 over FY
16-17.
4.8.7 Following Table summarises the reasons for change in major components of
O&M Expenses for FY 17-18 over FY 16-17.
Sr. No.
Particulars
1. Employee Cost
1.1
Gratuity
Payment
1.2
Earned
Leave
Encashment
MSEDCL
FY 16-17
FY 17-18
391.77
330.01
574.40
268.89
Difference
Remark
-61.76 The provision for gratuity & leave
encashment as per actuarial
valuation is less in FY 2017-18 as
compared to FY 2016-17 due to :1. Average service has reduced by
10%.
2. Average leave balance has
reduced by 6%.
3. Discount rate has increased
from 7.25% to 7.70%.
-305.51
Generally in the first year of leave
encashment
block,
leave
encashment is taken by most of the
employees. The leave encashment
January 20
25
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr. No.
Particulars
FY 16-17
FY 17-18
1.3
2.
Exp.
On
111.56
181.16
outsourced
Employees
Administration & General Expenses
2.1
2.2
3
Expenditure
on
Consumer
billing
Collection
Charges
189.30
260.74
67.37
76.03
R & M Exp.
777.35
816.07
Difference
Remark
block was FY 2016-18. As such
leave encashment in FY 2016-17 is
more and less in FY 2017-18.
69.60 Expenditure on outsourced
employees increased
71.44 Due in increase in no. of
consumers, there has been
increase in consumer billing
expenses and collection charges.
8.66
38.72
It includes the amount of Rs.
108.02 Crs. paid to Datar
Switchgear ltd in terms of Hon.
Supreme Court’s order dated
18.01.2018 towards damages.
4.8.8 MSEDCL further submits that in the employee expenses, MSEDCL has added
Rs. 50.20 Crs towards the regarding Re-measurement of defined benefits
plans. In this regards, MSEDCL would like to submit that the Gratuity is
recognized in the financial statements as per actuarial valuations by
independent actuaries at the year-end by using projected unit credit method as
on 31stMarch, 2018. It is unfunded defined benefit plan.
4.8.9 In accordance with the IND AS 19, all Actuarial Gain & Loss arising during the
year has been recognised in the Other Comprehensive Income (OCI). For FY
2017-18 amount recognised in other comprehensive income (OCI) is as follows.
Particulars
Actuarial gain & Loss due to Financial assumptions
changes in Defined benefit obligation (DBO)
Actuarial gain & Loss due to Experience on DBO
Total Actuarial (Gain)/ Loss included in OCI
MSEDCL
January 20
Amount
(80.42)
130.62
50.20
26
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
4.8.10 MSEDCL requests the Hon’ble Commission to allow the same as a part of
Employee Expenses.
4.9
Normative Operation & Maintenance Expenses for FY 2017-18
4.9.1 MSEDCL submits that Regulation 72 and Regulation 81 of the MERC (MYT)
(1st Amendment) Regulations 2017provides for the O&M Expenses Norm for
Distribution Wires Business and Retail Supply of electricity respectively.
4.9.2 Hon’ble Commission has issued an Amendment to the MERC (MYT)
Regulations 2015. As per the said Amendment “”72.3….. Provided that, in the
Truing-up of the Operation and Maintenance expenses for any particular year
of the Control Period, an inflation factor with 30% weightage to the average
yearly inflation derived based on the monthly Wholesale Price Index of the past
five financial years (including the year of Truing-up) and 70% weightage to the
average yearly inflation derived based on the monthly Consumer Price Index
for Industrial Workers (all-India) of the past five financial years (including the
year of Truing-up), as reduced by an efficiency factor of 1% or as may be
stipulated by the Commission from time to time, shall be applied to arrive at the
permissible Operation and Maintenance Expenses for that year.”
4.9.3 Following table provides the year-on-year variations in CPI and WPI for the last
5 years. Considering the average WPI and CPI and provisions of the
Amendment to the MERC (MYT) Regulations 2015, MSEDCL has calculated
the escalation factor as shown in the following table.
Calculation of Escalation Factor
Year
WPI
(2011-12)
106.90
112.50
113.88
109.72
111.62
114.88
FY 2012-13
FY 2013-14
FY 2014-15
FY 2015-16
FY 2016-17
FY 2017-18
5 Yrs Avg
Weight
30%
Rate with 1% reduction
MSEDCL
Annual
Increase
5%
1%
-4%
2%
3%
1.49%
0.45%
3.48%
January 20
CPI
Annual
(2001) Increase
215.17
236.00
10%
250.83
6%
265.00
6%
275.92
4%
284.42
3%
70%
5.76%
4.03%
27
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
4.9.4 Considering the above escalation factor and O&M expenses for FY 15-16 after
considering the impact of sharing of gains MSEDCL has calculated the O&M
Expenses for Wires Business and Retail Supply of electricity for FY 17-18 (in
the ratio of allocation matrix provided in the MYT Regulations 2015), as shown
in following table.
Table 18: O&M Expenses for Wires and Supply Business for FY 17-18
Particulars
O&M Expenditure for Wires business
O&M Expenditure for Retail Supply business
Operation and Maintenance Expenses
Rs. Crs
FY 2017-18
FY 2017-18
Deviation
(Approved) (Normative)
4,543.93
4,424.57
(119.37)
2,446.73
2,382.46
(64.27)
6,990.67
6,807.02
(183.64)
4.9.5 MSEDCL requests the Hon’ble Commission to allow the O&M Expenses as
computed in above table.
4.10 Capitalisation for FY 2017-18
4.10.1 MSEDCL has achieved capitalization of Rs. 3,337.90 Cr. in FY 2017-18 as
against Rs. 5,519.11 Cr. approved by Hon’ble Commission. Following table
shows the capitalization in FY 2017-18.
Table 19: Capitalisation for FY 17-18
Rs. Crs
Particulars
DPR Scheme
Non DPR Scheme
Total Capitalisation
FY 2017-18
(Approved)
4,599.25
919.85
5,519.11
FY 2017-18
(Actual)
3,133.60
204.30
3,337.90
Deviation
(1,465.65)
(715.55)
(2,181.21)
4.10.2 As per the Annual Accounts the addition to GFA is Rs. 3,379.29 Crs. whereas
in Form 4.2 MSEDCL has shown Capitalization as Rs. 3,337.90 Crs. MSEDCL
submits that in Form 4.2, only scheme wise details have been shown whereas
in Annual Accounts the Addition to GFA is shown in totality including land and
land rights, buildings etc. The detail of which is shown in the following table.
MSEDCL
January 20
28
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 20: Addition to GFA as per Annual Accounts for FY 17-18
Sr. No.
1
2
3
4
5
6
7
8
9
Particulars
Capitalisation as per Note of the Accounts
Capitalisation as per Form 4
Other Assets
Land
Buildings
Vehicles
Furniture & Fixtures
General Assets
Other Civil Works
Total (2 to 8)
Amount
(Rs. Crs)
3,379.29
3,337.90
10.75
13.04
0.31
1.11
15.42
0.76
3,379.29
4.10.3 Further details of General Assets is summarised below:
Particulars
Hydraulics Works
Communication Equipment
IT Equipment
Office Equipment
Other Assets
Total
Amount (Rs. Crs)
0.47
1.07
4.97
1.14
7.78
15.42
4.10.4 Hon’ble Commission in its previous Orders has allowed the capitalization
towards schemes not forming part of any specific scheme. MSEDCL further
submits that Hon’ble Commission has accordingly revised the GFA to that
extent as well. Therefore, MSEDCL requests the Hon’ble Commission to
approve the capitalization as per the Audited Accounts and revise the GFA
accordingly.
4.11 Depreciation for FY 2017-18
4.11.1 MSEDCL submits that in the MTR Petition, it has requested the Hon’ble
Commission to reconcile the GFA and accordingly revise the opening GFA for
FY 2015-16. In line with the approval of Rs. 927 Crs, MSEDCL has revised the
GFA from FY 2007-08 onwards as detailed in Chapter 3.
4.11.2 The Opening GFA as per MSEDCL’s Audited Accounts is Rs. 49,151.79 Crs
excluding the impact of Final Transfer Scheme/Restructuring Plan and
MSEDCL
January 20
29
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
subsequent revaluation. Accordingly, the depreciation has been reworked on a
pro-rata basis on the revised Opening GFA for FY 2017-18 for the purpose of
True-Up which is summarized below.
Table 21: Depreciation for FY 17-18
Sr. No.
1
2
3
4
5
6
Particulars
Opening GFA for FY 17-18 (Actual )
Revised Opening GFA* for FY 17-18 as per MERC
Less: Consumer Contribution and Grants
Net Opening GFA (Approved)
Depreciation (Actual)
Depreciation (Claimed in proportion to Actual)
* Considering the impact of Rs. 927 Crs
Amount
(Rs. Crs)
49,151.79
48,442.09
760.55
47,681.54
2,184.18
2,118.85
4.11.3 MSEDCL requests the Hon’ble Commission to allow the Depreciation as
computed in above table.
4.12 Funding Arrangement for FY 2017-18
4.12.1 As per the Regulation 26.1 of MERC (MYT), 2015, the debt-equity ratio as on
the date of commercial operation shall be 70:30 of the amount of capital cost
approved by the Commission. The said Regulation also provides that if the
equity actually deployed is more than 30% of the capital cost, equity in excess
of 30% shall be treated as normative loan for the Generating Company or
Licensee or MSLDC for determination of Tariff.
4.12.2 MSEDCL submits that the Hon’ble Commission has designed the formats for
submission of data in respect of Capex and Capitalization on yearly basis.
MSEDCL further submits that the information required by Hon’ble Commission
is on yearly basis whereas capital expenditure and capitalization of project is a
process which continues for 3 to 5 years. With such different timelines, there
will be spill-over of capex and capitalization and hence the capex and
capitalization and its funding on yearly basis will never match. MSEDCL also
submits that previously funding gap (if any) was shown as internal accrual and
Hon’ble Commission has considered it as a part of normative equity or
normative loan. It is pertinent to note that many times the Hon’ble Commission
has restricted the equity to 30% if the equity portion of the funding is exceeded
30% and excess equity was treated as normative loan. Thus, Hon’ble
MSEDCL
January 20
30
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Commission has already given the necessary effect for additional equity.
4.12.3 MSEDCL submits that in FY 2017-18 the funds received in respect of Loan,
Equity and Grant is more than the actual capital expenditure for the year.
Therefore, MSEDCL has reduced the normative loan to that extent and actual
equity infused during the year is considered. The grant and consumer
contribution is considered in proportion to the funding pattern of capital
expenditure.
4.12.4 The funding pattern for FY 2017-18 for the capitalization achieved by MSEDCL,
in proportion to the funding pattern of capital Expenditure, is presented in the
following table:
Table 22: Funding of Capitalisation for FY 2017-18
Particular
Total Capitalisation
Less: Consumer Contribution
Less: Grants
Balance to be funded
Equity
Debt
Amount
(Rs. Crs)
3,337.90
268.40
1,031.67
2,037.82
560.80
1,477.02
Funding
Mix (%)
27.52%
72.48%
4.12.5 MSEDCL requests the Hon’ble Commission to approve the funding as
submitted in above table.
4.13 Interest Expenses for FY 2017-18
4.13.1 MSEDCL has computed the interest expenses on normative basis linked to the
normative opening loan and normative loan addition during the year. In view of
the approval of Rs. 927 Crs, MSEDCL has revised the normative opening loan
from FY 2007-08 onwards in Chapter 3.
4.13.2 MSEDCL submits that the Regulation 29.5 of the MYT Regulations 2015
provides that at the time of Truing-up, the weighted average rate of interest
computed on the basis of the actual loan portfolio during the concerned year
shall be considered as the rate of interest. Accordingly, for arriving at the
interest rate, MSEDCL has considered the weighted average interest rate of
actual loan portfolio of FY 2017-18. The computation of weighted average
MSEDCL
January 20
31
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
interest rate of actual loan portfolio is shown in following table.
Table 23: Computation of weighted avg. interest rate for FY 17-18
Particulars
Actual (Rs.
Crs)
a
13,649.35
b
3,182.78
c
1,886.38
d=a+b-c
14,945.76
e=Avg(a,d)
14,297.55
f
1,442.88
g=f/e
10.09%
Formula
Outstanding Loan at the start of the year
Loan drawal during the year
Loan repayment during the year
Balance outstanding at the end of the year
Average Loan for the Year
Interest Expense incurred during the year
Weighted Average Interest rate
4.13.3 MSEDCL also submits that the opening balance of PFC/REC Loans as per
Audited Accounts is inclusive of Medium Term Loan (MTL) whereas in above
table, only long term capital loan amount is considered and MTL amount is not
included.
4.13.4 Regulation 29.3 of the MERC (MYT) Regulations 2015 provides for repayment
equal to depreciation. The relevant extract is reproduced below: 29.3 The
repayment during each year of the Control Period from FY 2016-17 to FY 201920 shall be deemed to be equal to the depreciation allowed for that year.
4.13.5 Considering the normative opening loan, normative loan addition during the
year and loan repayment equal to depreciation and the weighted average
interest rate of actual loan portfolio, MSEDCL has computed the interest
expenses on normative basis as summarized in table below:
Table 24: Interest Expenses for FY 17-18
Rs. Crs
Particulars
Normative Outstanding Loan at beginning of the year
Less: Reduction of Normative Loan due to retirement of assets
Loan Drawal
Loan Repayment
Normative Balance Outstanding at the end of the year
Average Balance of Net Normative Loan
Interest Rate
Interest Expenses
MSEDCL
January 20
FY 2017-18
FY 2017-18
(Approved) (Normative)
13,575.33
13,919.44
2,942.55
2,183.38
14,334.50
13,954.92
11.37%
1,586.38
1,477.02
2,118.85
13,277.61
13,598.53
10.09%
1,372.34
Deviation
344.10
(1,465.52)
(64.54)
(1,056.88)
(356.39)
(214.05)
32
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
4.13.6 MSEDCL submits that Hon’ble Commission had approved Funding of
Capitalization based on the approved capitalization in the MTR Order dated
12th September 2018. However, actual capitalization is lower than the approved
capitalization. The normative loan drawl is also lower than that approved in
MTR Order.
4.13.7 MSEDCL requests the Hon’ble Commission to approve the normative interest
expenses as submitted in the above table.
4.14 Interest on Working Capital for FY 2017-18
4.14.1 MSEDCL submits that the Regulations 31.3 of the MERC (MYT) Regulations
2015 provides for Interest on Working Capital for Wire business of electricity.
Further, the MYT Regulations 2015 also provides that for the purpose of Truingup for any year, interest on working capital shall be allowed at a rate equal to
the weighted average Base Rate prevailing during the concerned Year plus 150
basis points. However, Hon’ble Commission on 29th November 2017 issued the
First Amendment to MYT Regulations 2015. In view of the MYT (First
Amendment) Regulations, 2017, coming into force from 29th November, 2017,
the rate of interest on working capital for FY 2017-18 is considered at a
weighted average of SBI Base Rate plus 150 basis points for the first eight
months and at one-year MCLR of SBI plus 150 basis points for the remaining
four months. The detailed working of weighted average Base Rate is provided
in following table.
Table 25: Working of weighted average Base Rate
From
01-04-2017
01-07-2017
01-10-2017
01-12-2017
01-01-2018
01-02-2018
01-03-2018
To
30-06-2017
30-09-2017
30-11-2017
31-12-2017
31-01-2018
28-02-2018
31-03-2018
Weighted Avg. Rate
Plus 150 Basis Points
Total Weighted Avg. Rate
MSEDCL
Days
91
92
61
31
31
28
31
Rate
9.10%
9.00%
8.95%
7.95%
7.95%
7.95%
8.15%
Days X Rate
828%
828%
546%
246%
246%
223%
253%
365
8.69%
3170%
1.50%
10.19%
January 20
33
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
4.14.2 MSEDCL has calculated the interest on working capital at 10.19% as computed
in the following table. MSEDCL further submits that the amendment to the
Regulation 29.11 of MYT Regulations 2015 provides for Interest on Security
Deposit at MCLR plus 150 basis points. MSEDCL General Commercial Circular
No. 258 for Rate of Interest on Consumer Security Deposit @ 9.50% per annum
(MCLR plus 150 basis points) for FY 17-18 is attached as Annexure 4 to this
Petition.
Table 26: Interest on Working Capital for Wire business for FY 17-18
Rs. Crs
Particulars
Computation of Working Capital (Wire Business)
O&M expenses for a month
Maintenance Spares at 1% of Opening GFA
1.5 months of expected revenue from charges for use of
Distribution wires
Less: Amount held as SD from Distribution System Users
Total Working Capital Requirement
Rate of Interest (% p.a.)
Interest on Working Capital
Actual Working Capital Interest
Interest on Security Deposit
Rate of Interest (% p.a.)
Interest on Security Deposit
FY 2017-18
(Approved)
FY 2017-18
(Normative)
379.00
431.00
368.71
435.98
1,162.00
1,174.95
12.95
(698.00)
1,274.00
10.20%
129.95
(698.60)
1,281.04
10.19%
130.48
89.38
(0.60)
7.04
10.60%
73.99
63.26
Deviation
(10.29)
4.98
0.53
(10.73)
4.14.3 MSEDCL requests the Hon’ble Commission to allow the Interest on Working
Capital along with the Interest on Security Deposit for wire business as shown
in above table.
MSEDCL
January 20
34
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 27: Working Capital for Retail Supply business for FY 17-18
Rs. Crs
Particulars
Computation of Working Capital (Supply Business)
O&M expenses for a month
Maintenance Spares at 1% of Opening GFA
1.5 months equivalent of the expected revenue from sale of
electricity at the prevailing Tariff and including revenue from
CSS and Additional Surcharge
Less: Amount held as security deposit
Less: One month equivalent of cost of Power Purchase,
Transmission Charges and MSLDC Charges
Total Working Capital Requirement
Rate of Interest (% p.a.)
Interest on Working Capital
Actual Working Capital Interest
Interest on Security Deposit
Rate of Interest (% p.a.)
Interest on Security Deposit
FY 2017-18
(Approved)
FY 2017-18
(Normative)
204.00
48.00
198.54
48.44
7,582.00
7,797.44
(6,286.00)
(6,287.40)
(1.40)
(4,495.00)
(4,436.23)
58.77
(2,947.00)
10.20%
-
(2,679.21)
10.19%
804.43
267.79
10.60%
666.32
569.34
Deviation
(5.46)
0.44
215.44
(96.98)
4.14.4 MSEDCL further submits that Regulation 31.4 of the MERC (MYT Regulations
2015) provides for Interest on Working Capital for Retail Supply business of
electricity. MSEDCL has calculated the interest on working capital at 10.19%
as computed above and interest on security deposit is paid at 9.50% i.e. MCLR
plus 150 basis points and considered the actual paid amount as per audited
accounts.
4.14.5 MSEDCL requests the Hon’ble Commission to allow the Security Deposit for
supply business as shown in above table.
4.15 Other Finance Charges for FY 2017-18
4.15.1 MSEDCL submits that it has incurred Other Finance Charges amounting to Rs.
28.34 Crores during the FY 2017-18. These are the fund raising charges i.e.
Guarantee Charges, Finance Charges, Stamp Duty and Service Fee.
MSEDCL
January 20
35
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 28: Other Finance Charges for FY 17-18
Particulars
Guarantee Charges
Finance Charges
Stamp Duty
Service Fee (Fund-raising charges)
Total
Rs. Cr.
FY 2017-18 FY 2017-18
Deviation
(Approved)
(Actual)
0
1.20
1.20
0
24.17
24.17
0
0.61
0.61
0
2.36
2.36
28.34
28.34
4.15.2 MSEDCL submits that these charges depend on the no. of loans, LC required
to be given to the Power Suppliers, documentation for availing long term and
working capital loans. These charges are, thus, beyond reasonable control of
MSEDCL and hence required to be allowed on actual basis. Therefore,
MSEDCL humbly requests the Hon’ble Commission to allow the Other Finance
Charges as per the Audited Accounts.
4.16 Provision for Bad Debts for FY 2017-18
4.16.1 MSEDCL submits that bad debts are inseparable incidents of the business of
electricity distribution and retail supply.
4.16.2 Regulation 73 and 82 of the MYT Regulations, 2015 specifies that a provision
of bad and doubtful debt may be allowed up to 1.5% of the amount shown as
trade receivables or receivables in the Audited Accounts of the distribution
licensee duly allocated for wires and supply business respectively.
4.16.3 MSEDCL submits that Provision of bad debt generally depends on the nature
of the business and the risk involved in the business. A business typically
estimates the amount of bad debt based on historical experience.
4.16.4 MSEDCL has written off Rs. 37.20 Crs against the bad debt during the FY 201718 details of which are summarised in following table.
Sr. No.
Category
Amount (Rs. in Crs.)
A
PD LT consumers having arrears less than Rs. 1000
1
Residential
MSEDCL
26.86
January 20
36
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr. No.
2
3
4
B
C
Category
Amount (Rs. in Crs.)
Commercial
IP
Other
Total
PD Amnesty Scheme
Abhay Yojana
Grand Total
3.53
0.49
0.50
31.39
5.72
0.09
37.20
4.16.5 MSEDCL has computed the provision for bad and doubtful debts for FY 201718 as per the provisions of the MYT Regulations 2015 considering the
receivables as per Audited Accounts.
Table 29: Provision for bad and doubtful debts for FY 2017-18
Rs. Crs
FY 2017-18
(Approved)
Particulars
Opening Balance of Provision for bad and
doubtful debts
Receivables for the year
Provision for bad & doubtful debts during the
year
Provision for bad & doubtful debts during
the year
Actual bad and doubtful debts written off
Closing Balance of Provision for bad and
doubtful debts
Closing Balance as a % of receivables
FY 2017-18
(Actual)
1,120.58
1,120.58
32,768.47
45,382.08
1.50%
491.53
1,612.10
4.92%
Deviation
12,613.61
1.50%
680.73
189.20
37.20
37.20
1,764.11
152.00
3.89%
4.16.6 Considering the allocation matrix provided by Hon’ble Commission in the MYT
Regulations 2015, MSEDCL has worked out the provision for Bad Debt for wire
and retail supply businesses respectively as shown below.
Table 30: Provision for Bad and Doubtful Debt (Wire and Supply) FY 2017-18
Particulars
Bad Debt Provision for Wires business
Bad Debt Provision for Retail Supply business
Bad Debt Provision
Rs. Crs
FY 2017-18 FY 2017-18
Deviation
(Approved) (Normative)
49.15
68.07
18.92
442.37
612.66
170.28
491.53
680.73
189.20
4.16.7 As per the above computation, MSEDCL humbly requests the Hon’ble
MSEDCL
January 20
37
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Commission to approve Rs. 680.73 Cr. towards the provision for Bad Debts
for FY 17-18.
4.17 Other Expenses for FY 2017-18
4.17.1 The other expenses of MSEDCL comprise of the expenditure on account of
Non-Moving items written off, interest to suppliers/contractors, Incentive to
distribution franchisee and other expenses viz. compensation for injuries to staff
and outsiders. MSEDCL accordingly submits the other expenses as shown in
the table below.
Table 31: Other Expenses for FY 2017-18
Rs. Crs
Particulars
Compensation for injuries,death to staff
Compensation for injuries,death to others
Loss on obsolescence of fixed Assets
Sundry debit balances written off
Non Moving Items
Interest to Suppliers/Contractors
Others
Other Expenses (incl. payable to DSL towards
damages in terms of Arbitral Award dt.
18.06.2004)
Other Expenses for previous years
Expected Credit loss on other receivables
TOTAL
FY 2017-18
(Approved)
1.23
14.81
3.45
2.39
FY 2017-18
(Actual)
1.28
16.05
22.53
1.55
1.67
280.71
-
41.41
63.30
41.81
11.89
8.99
386.47
Deviation
0.05
1.24
22.53
1.55
(1.79)
280.71
(2.39)
41.81
11.89
(32.42)
323.18
4.17.2 MSEDCL submits that the amount under the head “interest to
suppliers/contractor” as per the Audited Accounts included Delayed Payment
Charges / Surcharge payable to MSPGCL, MSETCL, IPPs & Wind Generators
for FY 2017-18. MSEDCL has not claimed the same.
4.18 Contribution to Contingency Reserves for FY 2017-18
4.18.1 MSEDCL submits that considering the precarious financial condition and
unavailability of sufficient funds to discharge its various liabilities, it was not
feasible for MSEDCL to invest in contingency reserves. Therefore, MSEDCL
has not invested any amount in contribution to contingency reserves.
Accordingly, the same is not claimed in ARR of the FY 2017- 18.
MSEDCL
January 20
38
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
4.19 Incentives and Discounts for FY 2017-18
4.19.1 MSEDCL submits that during FY 2017-18, it has paid Rs. 242.40 Crs of
incentives/discounts to the consumers for timely payment of bills as against Rs.
246.58 Crs approved by Hon’ble Commission in its MTR Order dated 12th
September 2018.
Table 32: Incentives/discounts for FY 17-18
Rs. Crs
Particulars
Incentives and Discount
FY 2017-18
(Approved)
246.58
FY 2017-18
(Actual)
242.40
Deviation
(4.19)
4.19.2 MSEDCL requests the Hon’ble Commission to allow the incentives/discounts
as per the Audited Accounts for FY 2017-18.
4.20 RLC Refund for FY 2017-18
4.20.1 MSEDCL during FY 2017-18 has made a refund of Rs. 0.70 Crs of RLC.
MSEDCL requests the Hon’ble Commission to allow the RLC Refund for FY
2017-18 as per Audited Accounts. MSEDCL also request the Hon’ble
Commission to allow the RLC refund as and when it refunds the same to eligible
consumers in future.
Table 33: RLC Refund for FY 17-18
Rs. Crs
FY 2017-18
(Approved)
-
Particulars
RLC Refund
FY 2017-18
(Actual)
0.70
Deviation
0.70
4.21 ASC Refund for FY 2017-18
4.21.1 MSEDCL during FY 2017-18 has made a refund of Rs. 0.49 Crs of ASC.
MSEDCL requests the Hon’ble Commission to allow the ASC Refund for FY
2017-18 as per Audited Accounts.
Table 34: ASC Refund for FY 17-18
Rs. Crs
Particulars
ASC Refund
MSEDCL
FY 2017-18
(Approved)
FY 2017-18
(Actual)
0.49
January 20
Deviation
0.49
39
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
4.21.2 MSEDCL submits that the refund of ASC was made in the month of May-2017.
Hon’ble Commission in the Order dated 7th July 2017 (Case No. 101 of 2016)
has directed that “……..no further such refunds shall be made from the date of
this Order irrespective of whether or not any applications are pending”.
4.21.3 As per said Order ASC refund stopped from the date of Order i.e. 7 July 2017.
Being actual refund made to consumers before the Hon’ble Commission’s
Order, MSEDCL submits that this ASC refund is in line with Hon’ble
Commission’s earlier directives for ASC Refund. Hence, MSEDCL has claimed
the ASC refund which is legitimate expense as per the Audited Account.
4.21.4 MSEDCL further submits that as per the Order of Hon’ble Commission dated
7th July 2017 in Case No. 101 of 2016, MSEDCL has stopped the refund of
ASC.
4.22 Return on Equity for FY 2017-18
4.22.1 Regulation 28.2 of MERC (MYT) Regulations 2015 provides for Return on
Equity (RoE) for Distribution Licensee for both Wire and Supply Business. In
line with the approval of Rs. 927 Crs, MSEDCL has revised the normative
opening equity from FY 2007-08 onwards in Chapter 3. Further, considering the
funding pattern in Paragraph 4.12, MSEDCL has considered the equity addition
during the year.
4.22.2 The return on equity capital is allocated in the ratio of Fixed Assets between the
Wires and Retail Supply Business, i.e. 90% to Wires Business and 10% to
Supply Business. Therefore, the capital expenditure, grants, equity and
capitalisation is divided into wires and supply business in the ratio of 90:10.
4.22.3 MSEDCL further submits that it has not reduced the equity corresponding to
the assets retired in FY 17-18 since retirement against only Land is seen and
accordingly, claimed the ROE on entire equity.
4.22.4 Considering the provisions of the MYT Regulations 2015, MSEDCL has
computed the return on equity as shown in following tables.
MSEDCL
January 20
40
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 35: RoE for wires business for FY 17-18
Rs. Crs
FY 2017-18
(Approved)
Particulars
Return on Equity (Wires Business)
Regulatory Equity at the beginning of the year
Equity portion of Assets Capitalisation
Equity portion of Assets Decapitalised
Regulatory Equity at the end of the year
Return on Computation
Return on Regulatory Equity at the beginning of the year
- 15.5%*(1)
Return on Normative Equity portion of Asset
Capitalization - 15.5%*(2)/2
Interest on Equity portion above 30% equity
Total Return on Regulatory Equity
FY 2017-18
(Normative)
9,796.00
1,270.00
11,066.00
9,719.53
504.72
10,224.25
1,518.38
1,506.53
98.43
39.12
6.00
1,622.81
1,545.64
Deviation
(76.47)
(765.28)
(841.75)
(11.85)
(59.31)
(71.16)
Table 36: RoE for Supply business for FY 17-18
Rs. Crs
Particulars
FY 2017-18
(Approved)
FY 2017-18
(Normative)
1,088
141
1,229
1,080
56
1,136
(7.60)
(84.92)
(92.52)
190.40
189.07
(1.33)
12.34
4.91
(7.43)
1
203.74
193.98
(8.76)
Return on Equity (Supply Business)
Regulatory Equity at the beginning of the year
Equity portion of Assets Capitalisation
Equity portion of Assets Decapitalised
Regulatory Equity at the end of the year
Return on Computation
Return on Regulatory Equity at the beginning of the
year - 17.5%*(1)
Return on Normative Equity portion of Asset
Capitalization - 17.5%*(2)/2
Interest on Equity portion above 30% @11.37%p.a.
Total Return on Regulatory Equity
Deviation
4.22.5 MSEDCL requests the Hon’ble Commission to allow the RoE as computed
above.
4.23 Sharing of Efficiency Gains & Losses for FY 2017-18
4.23.1 Regulations 9, 10 and 11 of the MYT Regulations, 2015 specify the controllable
and uncontrollable parameters, mechanism of pass-through of gains and
losses on account of uncontrollable parameters, and the mechanism for their
sharing on account of controllable parameters as follows:
MSEDCL
January 20
41
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
“11.1 The approved aggregate gain to the Generating Company or Licensee or
MSLDC on account of controllable factors shall be dealt with in the following
manner:—
(a) Two-third of the amount of such gain shall be passed on as a rebate in Tariff
over such period as may be stipulated in the Order of the Commission under
Regulation 8.4;
(b) The balance amount of such gain shall be retained by the Generating
Company or Licensee or MSLDC.
11.2 The approved aggregate loss to the Generating Company or Licensee or
MSLDC on account of controllable factors shall be dealt with in the following
manner:—
(a) One-third of the amount of such loss may be passed on as an additional
charge in Tariff over such period as may be stipulated in the Order of the
Commission under Regulation 8.4;
(b) The balance amount of such loss shall be absorbed by the Generating
Company or Licensee or MSLDC.”
4.23.2 Parameters such as O&M Expenses, Interest on Working Capital for which
specific norms have been specified in the MYT Regulations, have been
calculated on normative basis.
4.23.3 As these parameters need to be treated as controllable under the MYT
Regulations 2015, any variation in the actual expenses as against the
permissible normative levels has been shared between MSEDCL and
consumers.
4.23.4 O&M Expenses: The actual O&M Expenses as per the Audited Accounts for
FY 2017- 18 are lower than that on normative basis.
4.23.5 Interest on Working Capital: The actual IoWC expense as per the Audited
Accounts for FY 2017-18 is higher than that on normative basis.
4.23.6 Distribution Loss: The actual distribution loss (excluding EHV Sales) for FY
2017-18 is lower than that approved in the MYT Order.
MSEDCL
January 20
42
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
4.23.7 The summary of sharing of efficiency gains/(loss) on account of O&M Expenses
and IoWC is shown in the Table below:
Table 37: Sharing of Efficiency Gains/(Losses) on O&M and IoWC Expenses for FY
2017-18
Particulars
O&M Expenses
Interest on Working Capital
Normative
6,807.02
130.48
Actual
5,658.28
893.82
Rs. Crs
2/3 of
Net
Gains/
1/3 of Efficiency
Efficiency
Entitlement
(Loss)
Gains/Losses
gains/Losses
after sharing
1,148.74
765.83
382.91
6,041.20
(763.34)
(508.89)
(254.45)
384.93
4.23.8 MSEDCL submits that it has computed the sharing of efficiency gain/ loss
considering 16.26% as the approved distribution loss target (Excluding EHV
Sales) against the actual distribution losses (Excluding EHV Sales) in
accordance with the MERC (MYT) Regulations, 2015. MSEDCL further submits
that the approved distribution loss of 13.50% for FY 2015-16 was inclusive of
EHV sales. Hence, these two numbers cannot be compared for sharing
purpose. It is pertinent to note that in MYT Order dated 3rd November 2016 the
Hon’ble Commission itself has approved the distribution loss target as 16.26%
(excluding EHV sales) for FY 2017-18. The normative loss of 13.50% was
approved loss trajectory for FY 2015-16 on provisional basis and was inclusive
of EHV Sales.
4.23.9 Since, Distribution Loss Trajectory excluding EHV sales was introduced by
Hon’ble Commission for 3rd Control Period in MYT Order, the actual
Distribution Loss excluding EHV sales needs to be compared with the approved
Distribution Loss Trajectory excluding EHV sales.
4.23.10
The summary of sharing of efficiency gains/(loss) on account of
Distribution Losses is shown in the Table below:
MSEDCL
January 20
43
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 38: Efficiency Gains/(Losses) due to lower Distribution Loss in FY 2017-18
Particulars
Actual Distribution Loss
MYT approved Loss
Sales Excl. EHV sales in MUs
EHV Sales in MUs
Total Sales in MUs
IntraSTS loss (Proposed)
Power Requirement at Ex-Bus Periphery (Actual) in MUs
Power Requirement at Ex-Bus Periphery (Normative) in MUs
Additional/ (lower) Power purchase due to higher distribution loss in MUs
Marginal Variable Cost of Power Purchase Rs./kWh
Amount
(Rs. Crs)
14.82%
16.26%
93,967
7,724
1,01,691
3.72%
1,22,602
1,24,566
(1,964.1)
3.24
Additional/(Lower) Power purchase Cost due to lower distribution loss
2/3 Efficiency gain/(loss)
1/3 Efficiency gain/(loss) to be borne by the consumers
(637.10)
424.73
212.37
4.23.11
The total impact of sharing of efficiency gains and losses of various
components have been summarized in the Table below:
Table 39: Impact of sharing of gains and losses for FY 17-18
Particulars
O&M Expenses
IoWC
Impact of Gain in Distribution Loss passed on Consumers
Total
Amount
Rs. Crs
(765.83)
254.45
212.37
(299.01)
4.23.12
MSEDCL requests the Hon’ble Commission to allow the sharing of gains
and losses as submitted in above table.
4.24 Impact of payment to MPECS for FY 2017-18
4.24.1 Hon’ble Commission in the MYT Order dated 3rd November 2016 has approved
following amounts towards payment to MPECS.
Financial Year
FY 17-18
FY 18-19
FY 19-20
MSEDCL
Amount in Rs. Cr.
46.20
43.18
40.17
January 20
44
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
4.24.2 Hon’ble Commission in the MTR Order has approved the amount towards
payment to MPECS as the same was allowed under the MYT Order. The
Hon’ble Commission in the MTR Order also ruled that it shall consider the
actual amount towards this head at the time of truing up of FY 2017-18.
4.24.3 MSEDCL has claimed Rs. 46.46 Crs towards the payments to MPECS for FY
2017-18 as per the Audited Accounts.
4.25 Past Period Adjustment by Commission for FY 2017-18
4.25.1 In the MTR Petition, MSEDCL had submitted that in the MYT Order dated 3rd
November 2016, the Hon’ble Commission had considered the Net Impact of
Past Period while approving the revenue for MSEDCL from revised tariffs for
the third Control Period. MSEDCL had accordingly considered the impact of the
same in the respective year during the MTR Process.
4.25.2 Hon’ble Commission had approved the past period adjustments of Rs. (1,116)
Crs in MTR Order dated 12th September 2018 as approved in the MYT Order.
MSEDCL has considered the same for FY 2017-18.
4.26 Aggregate Revenue Requirement for FY 2017-18
4.26.1 Considering the parameters discussed above, the Aggregate Revenue
Requirement (ARR) of MSEDCL for Wires Business for the FY 2017 -18 is as
follows:
Table 40: ARR for Wires Business for FY 17 -18
Rs. Crs
Particulars
Operation & Maintenance Expenses
Depreciation
Interest on Loan Capital
Interest on Normative Working Capital
Interest on deposit from Consumers and Distribution
System Users
Other Finance Charges
Provision for bad and doubtful debts
Return on Equity Capital
Aggregate Revenue Requirement
MSEDCL
FY 2017-18
(Approved)
4,543.93
1,965.04
1,427.74
129.90
FY 2017-18
(Actual)
4,424.57
1,906.96
1,235.10
130.48
74.04
63.26
(10.78)
49.15
1,643.41
9,833.22
25.50
68.07
1,545.64
9,399.59
25.50
18.92
(97.77)
(433.63)
January 20
Deviation
(119.37)
(58.08)
(192.64)
0.58
45
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
4.26.2 MSEDCL submits that considering the parameters discussed above, the
Aggregate Revenue Requirement (ARR) for Supply Business for the FY 2017
-18 is as follows:
Table 41: ARR for Supply Business for FY 17 -18
Particulars
Power Purchase Expenses
Operation & Maintenance Expenses
Depreciation Expenses
Interest on Loan Capital
Interest on Normative Working Capital
Interest on Consumers Security Deposit
Other Finance Charges
Provision for bad and doubtful debts
Other Expenses
Intra-State Transmission Charges MSLDC charge
Incentives/Discounts
DSM expenses
Return on Equity Capital
RLC refund
ASC refund
Effect of sharing of gains/losses
Past Period Adjustment by Commission
Impact of payment to MPECS
Aggregate Revenue Requirement for Supply
Business
Rs. Crs
FY 2017-18 FY 2017-18
Deviation
(Approved)
(Actual)
49,129.74
48,422.63
(707.11)
2,446.73
2,382.46
(64.27)
218.34
211.88
(6.45)
158.64
137.23
(21.40)
666.32
569.34
(96.98)
2.83
2.83
442.37
612.66
170.28
63.30
386.47
323.18
4,812.17
4,812.17
246.58
242.40
(4.19)
0.88
4.30
3.42
182.60
193.98
11.38
0.70
0.70
0.49
0.49
(299.01)
(299.01)
(1,116.00)
(1,116.00)
46.20
46.46
0.26
57,297.87
56,610.99
(686.88)
4.27 Revenue from sale of electricity for FY 2017-18
4.27.1 MSEDCL has considered the revenue for FY 2017-18 based on the Audited
Accounts as shown in following table.
Table 42: Revenue from Sale of power for FY 17-18
Rs. Crs
Particulars
Revenue from Sale of Power
FY 2017-18
(Approved)
60,538.76
FY 2017-18
(Actual)
61,146.03
Deviation
607.27
4.27.2 The Annual Accounts of MSEDCL shows the revenue from various revenue
operations including regulatory income. However, being not part of revenue
from sale of power at retail tariff and as per practice in vogue, MSEDCL has
MSEDCL
January 20
46
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
shown certain items of revenue separately.
4.27.3 MSEDCL submits that the category wise details of actual revenue vis-à-vis
approved revenue is summarized in following table.
Table 43: Category wise Revenue for FY 2017-18
Category
Residential
Commercial
HT-Industrial
LT-Industrial
PWW
Street Light
Agriculture
Public Services
Railways
Other Categories
Other (Subsidy/Recoveries from Theft etc)
Sub Total
Revenue from DF@input sales
Standby Charges
Total
Revenue (Rs. Crs)
Approved
Actual
Deviation
12,084.19
12,083.89
(0.30)
7,880.72
7,880.20
(0.52)
20,234.19
20,379.21
145.02
4,549.58
4,524.59
(24.98)
1,170.31
1,178.75
8.44
1,031.39
1,041.06
9.67
9,060.16
9,088.38
28.22
1,239.91
1,247.11
7.20
43.14
43.42
0.28
180.14
181.69
1.55
182.81
550.16
367.35
57,656.54
58,198.46
541.92
2,486.06
2,549.78
63.73
396.17
397.79
1.62
60,538.76
61,146.03
607.27
4.27.4 MSEDCL further submits that the detail of Others (Subsidy/ Recoveries from
Theft of Power/Malpractice etc.) is provided in following table.
Particulars
Rs. Cr.
FY 2017-18
(Actual)
Recoveries from Theft of Power/Malpractice
88.41
Income from Wheeling Charges claimed Separately
-1.46
Revenue from subsidy & grant
406.79
Miscellaneous charges from consumers
Total
56.43
550.16
4.27.5 MSEDCL humbly requests to the Hon’ble Commission to consider the revenue
from sale of power as shown in above table and true up the same.
4.28 Non-Tariff Income for FY 2017-18
4.28.1 MSEDCL has certain sources of non-tariff income viz. interest on arrears of
MSEDCL
January 20
47
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
consumers, delayed payment charges, interest on staff loans and advances,
sale of scrap, interest on investment etc.
4.28.2 MSEDCL has claimed a Non-Tariff Income of Rs. 380.33 Crs as against Rs.
448.09 Crs as approved by the Hon’ble Commission.
Table 44: Non-Tariff Income for FY 17-18
Rs. Crs
Particulars
Rents of land or buildings
Sale of Scrap
Income from investments
Interest from Franchisee
Income from sale of tender documents
Prompt payment discount from REC/PFC
Other/Miscellaneous receipts
Non Tariff Income
FY 2017-18
(Approved)
1.15
50.88
15.65
84.95
6.24
14.72
274.50
448.09
FY 2017-18
(Actual)
1.15
51.36
15.65
6.24
14.72
291.22
380.33
Deviation
(0.00)
0.48
0.00
(84.95)
0.00
16.72
(67.76)
4.28.3 As provided in the Regulation 36.3 of the MYT Regulations 2015, delayed
Payment Charge and Interest on Delayed Payment is not considered under
Non-Tariff Income.
4.28.4 MSEDCL has not considered income from grants and contribution reported
under non-tariff income amounting to Rs. 634 Crore, as the treatment to the
same is already considered while computing the depreciation for the FY 201718.
4.28.5 As approved by Hon’ble Commission in MTR Order dated 12 th September
2018, MSEDCL has not considered the Grant of Rs.992 cr. received under
UDAY Scheme.
4.28.6 MSEDCL further submits that the Other/Misc. receipts include


Interest on loans & advances to supplier/contractors : Rs. 5.42 Crs
Interest Income for prior period : Rs. 3.50 Crs


Sundry Credit Balances written back : Rs. 38.86 Crs
Miscellaneous Receipts : Rs. 146.61 Crs

Penalty charges Recovered from Vendor : Rs. 78.87 Crs
MSEDCL
January 20
48
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition


Other income related to prior period : Rs. 23.42 Crs
Other Adjustments: Rs.(5.46) Crs
4.29 Income from Open Access Charges for FY 2017-18
4.29.1 MSEDCL has an income from Open Access Charges of Rs. 546.56 Crs as
against Rs. 536.17 Crs as approved by the Hon’ble Commission.
Table 45: Income from Open Access Charges for FY 17-18
Rs. Crs
FY 2017-18
(Approved)
536.17
Particulars
Income from Open Access Charges
FY 2017-18
(Actual)
546.56
Deviation
10.40
4.29.2 Details of income from Open Access charges are provided in the following
Table.
Table 46: Details of Income Open Access Charges for FY 17-18
Particulars
Energy Charges Open Access
F.C.A Charges Open Access
Additional Charges Open Access
Adjustment to past billing Open Access
PF Penalty Open Access
Cross Subsidy Surcharge Open Access
Wheeling Charge Open Access
Transmission Charge Open Access
Operating Charges Open Access
Additional Energy Charges
Other Adjustments
Total Income from Open Access Charges
Amount
(in Rs. Crs)
71.04
-1.56
0.05
-10.56
0.11
221.84
52.61
220.17
17.25
-1.08
-23
546.56
4.29.3 Hence, MSEDCL humbly requests to the Hon’ble Commission to approve the
Income from Open Access Charges as per the Audited Accounts.
4.30 Income from Trading of Surplus Power for FY 2017-18
4.30.1 MSEDCL has an Income of Rs. 186.27 Crs. From trading of surplus power as
MSEDCL
January 20
49
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
provided in following table.
Table 47: Income from Trading of Surplus Power for FY 17-18
Rs. Crs
Particulars
Income from Trading of Surplus Power
FY 2017-18
(Approved)
179.94
FY 2017-18
(Actual)
186.27
Deviation
6.33
4.30.2 MSEDCL humbly requests to the Hon’ble Commission to approve the income
from sale of surplus power as shown in above table.
4.31 Income from Wheeling Charges for FY 2017-18
4.31.1 MSEDCL has an income from Wheeling Charges of Rs. 1.46 Cr. in actual and
as approved by the Hon’ble Commission.
Table 48: Income from Wheeling Charges for FY 2017-18
Rs. Crs
Particulars
Income from Wheeling Charges
FY 2017-18
(Approved)
1.46
FY 2017-18
(Actual)
1.46
Deviation
-
4.31.2 Hence, MSEDCL humbly requests to the Hon’ble Commission to approve the
Income from Wheeling Charges as per the Audited Accounts.
4.32 Income from Additional Surcharge for FY 2017-18
4.32.1 MSEDCL has an income from additional surcharge of Rs. 118.88 Cr during FY
2017-18.
Table 49: Income from Additional Surcharge for FY 2017-18
Rs. Crs
Particulars
Income from Additional Surcharge
FY 2017-18
(Approved)
118.88
FY 2017-18
(Actual)
118.88
Deviation
-
4.32.2 MSEDCL humbly requests the Hon’ble Commission to approve the income
from additional surcharge as per the Audited Accounts.
4.33 Revenue Gap/(Surplus) for FY 2017-18
4.33.1 Based on the above submissions, the summary of ARR (after sharing of
MSEDCL
January 20
50
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
efficiency gains &losses) for the Wires Business and Supply Business, as per
Audited Account and as approved by the Hon’ble Commission, for FY 2017-18
is presented in the Table below.
Table 50: Revenue Gap/Surplus for FY 17-18
Rs. Crs
Particulars
Power Purchase Expenses
Operation & Maintenance Expenses
Depreciation Expenses
Interest on Loan Capital
Interest on Normative Working Capital
Interest on Consumers Security Deposit
Other Finance Charges
Provision for bad and doubtful debts
Other Expenses
Intra-State Transmission Charges MSLDC charge
Incentives/Discounts
DSM expenses
Return on Equity Capital
RLC refund
ASC refund
Effect of sharing of gains/losses
Past Period Adjustment by Commission
Impact of payment to MPECS in future years
Aggregate Revenue Requirement
Revenue from Sale of Power
Non-Tariff Income
Income from Open Access Charges
Income from Trading of Surplus Power
Income from Wheeling Charges
Income from Additional Surcharge
Total Revenue
Revenue Gap/(Surplus)
FY 2017-18
(Approved)
49,129.74
6,990.67
2,183.38
1,586.38
129.90
740.35
491.53
63.30
4,812.17
246.58
0.88
1,826.01
(1,116.00)
46.20
67,131.10
60,538.76
447.80
536.17
179.94
1.46
118.88
61,823.01
5,308.08
FY 2017-18
(Actual)
48,422.63
6,807.02
2,118.85
1,372.34
130.48
632.60
28.34
680.73
386.47
4,812.17
242.40
4.30
1,739.62
0.70
0.49
(299.01)
(1,116.00)
46.46
66,010.58
61,146.03
380.33
546.56
186.27
1.46
118.88
62,379.54
3,631.04
Deviation
(707.11)
(183.64)
(64.54)
(214.05)
0.58
(107.75)
28.34
189.20
323.18
(4.19)
3.42
(86.39)
0.70
0.49
(299.01)
0.26
(1,120.52)
607.27
(67.46)
10.40
6.33
556.53
(1,677.05)
4.33.2 The Hon’ble Commission in its MTR Order dated 12th September 2018 has
approved Aggregate Revenue Requirement of Rs. 67,131.10 Cr. for FY 201718. MSEDCL submits actual ARR of Rs. 66,010.58 Cr. with a deviation of Rs.
(1,120.52) Crs. Considering the impact of revenue and other income, the truing
up requirement works out to be Rs. (1,677.05) Cr. MSEDCL requests the
Hon’ble Commission to allow MSEDCL the true up requirement as submitted
above.
MSEDCL
January 20
51
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
5
5.1
TRUE UP OF FY 2018-19
Preamble
5.1.1 This section outlines the actual performance of MSEDCL for the FY 2018-19.
MSEDCL hereby submits final True Up for FY 2018-19 comparing the actual
audited data for FY 2018-19 with those approved by the Hon’ble Commission
vide MTR Order dated 12th September 2018 in Case no. 195 of 2017.
5.1.2 The Board of Directors of MSEDCL has approved the Audited Annual Accounts
for the period April 2018 to March 2019 and Statutory Auditors M/s. SGCO &
Co. LLP, M/s. Shah & Taparia, and M/s CNK & Associates LLP have audited
the Accounts vide report dated 25/10/2019 attached as Annexure 3 to this
Petition. MSEDCL hereby proposes to true up its expenses and revenues
based on the said Audited Accounts.
5.2
Category Wise Sales for FY 2018-19
5.2.1 Category wise actual sales for FY 2018-19 for MSEDCL excluding all
Distribution Franchisee have been summarized in the following table:
Table 51: Category wise Sales for FY 2018-19
Category
Residential
Commercial
HT-Industrial
LT-Industrial
PWW
Street Light
Agriculture
Public Services
Railways
Others
MSEDCL Excl. DF
FY 2018-19
(Approved)
19,564.23
7,418.70
28,647.64
6,849.84
2,330.36
1,883.04
30,137.30
1,445.99
59.25
702.42
99,038.77
Sales (MUs)
FY 2018-19
(Actual)
19,718.85
7,276.70
31,025.59
6,763.16
2,329.59
1,958.44
33,853.32
1,456.10
67.08
686.98
1,05,135.81
Deviation
154.62
(142.00)
2,377.95
(86.68)
(0.77)
75.40
3,716.02
10.11
7.83
(15.44)
6,097.04
5.2.2 MSEDCL submits that during the MTR Process, the Hon’ble Commission had
approved the sales based on category-wise sales approved for FY 2017-18 as
the base. The Hon’ble Commission had mostly applied 3-year CAGR for
MSEDCL
January 20
52
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
projecting the sales for FY 2018-19. Now, the actual figures of FY 2018-19 are
available and the Audited Accounts for FY 18-19 of MSEDCL are also available.
5.3 Study of AG Dominated EHV Feeders:
5.3.1 The data of 734 EHV feeders feeding to MSEDCL AG dominated Substations
were considered for study. These Selected EHV feeders feeding Distribution
substations having AG feeder input more than 50% of total input. MSEDCL
submits that the trend of the parameters under study have been analysed in the
below tables.
Table 52: Increase in AG Sales FY 18-19 (Half Yearly)
All units are in
MUs
734 EHV feeders
MSEDCL
H1 (Apr to Sep)
H2 (Oct to Mar)
EHV
input
AG
Sale
EHV
input
AG
Sale
5,135
6,459
7,499
12,556
12,281
13,014
25.78
16.10
-2.19
5.97
FY 16-17
7,829
FY 17-18
9,954
FY 18-19
11,564
Year- on -Year trend (%)
FY 17-18/16-17
27.14
FY 18-19/17-18
16.18
8,340
8,217
8,417
H1 (Apr to Sep)
Total
Total
Ag
I/p
sales
55,291
10,720
60,927
12,813
65,804
15,316
H2 (Oct to Mar)
Total
Total
Ag
I/p
sales
61,503
16,687
62,945
16,992
66,637
17,240
-1.48
2.44
10.19
8.01
2.35
5.86
19.52
19.53
1.83
1.46
Table 53: Increase in AG Sales FY 18-19 (Yearly)
All units are in
MUs
734 EHV feeders
MSEDCL
EHV input
Total I/p
16-17
20,385
17-18
22,235
18-19
24,578
Year- on -Year trend (%)
13,475
14,675
15,916
1,16,794
1,23,872
1,32,441
Total
Ag
sales
27,407
29,805
32,556
AG Sale
FY 17-18/16-17
9.07
8.91
6.06
8.75
FY 18-19/17-18
10.54
8.45
6.92
9.23
MSEDCL
January 20
53
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
5.4 Observation for EHV Feeder Data
5.4.1 MSEDCL submits following observations for change in sale for FY 17-18
compared to FY 16-17
 In H1 of FY 17-18, an increase of around 19.52% is observed in Actual
AG sales.



This aforementioned increase in MSEDCL AG Sales is substantiated
with the input rise & AG Sales of EHV feeders feeding to MSEDCL
Substations. The EHV feeder AG Sale rise of 25.78% is in line with Input
rise of 27.14% of EHV feeders.
In similar manner for H2 of FY 17-18, drop in EHV input (-2.19%) is
reflected in drop in AG Sale (-1.48%).
The above data for FY 2017-18 in comparison to FY 2016-17 shows rise
of 8.91% in AG Sale of EHV feeder & rise of 8.75% in AG Sale of
MSEDCL is in similar lines with the rise in EHV Input of 9.07%.
5.4.2 MSEDCL submits following observations for change in sale for FY 18-19
compared to FY 17-18

In H1 of FY 18-19, an increase of around 19.53% is observed in Actual
AG sales.

This aforementioned increase in MSEDCL AG Sales is substantiated
with the input rise & AG Sales of EHV feeders feeding to MSEDCL
Substations. The EHV feeder AG Sale rise of 16.10% is in line with Input
rise of 16.18% of EHV feeders.

In similar manner for H2 of FY 18-19, Rise in EHV input (5.97%) is
reflected in rise in AG Sale (2.44%).

The above data for FY 2018-19 in comparison to FY 2017-18 shows rise
of 8.45% in AG Sale of EHV feeder & rise of 9.23% in AG Sale of
MSEDCL is in similar lines with the rise in EHV Input of 10.54%

The similar pattern displayed in the above figure strongly affirms the
relationship between EHV Input and AG sales
5.4.3 MSEDCL hereby requests the Hon’ble Commission to approve the Sales for
FY 2018-19 as submitted above.
MSEDCL
January 20
54
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
5.5
Distribution Losses for FY 2018-19
5.5.1 In MTR Order dated 12th September, 2018 in Case No. 195 of 2017, the
Hon’ble Commission had approved distribution loss of 14.76% (excluding EHV
Sales) for FY 2018-19. The actual distribution loss of MSEDCL for FY 2018-19
is 14.70% which is (0.06%) less than the Distribution Loss level approved by
the Hon’ble Commission.
Table 54: Distribution Losses FY 2018-19
Particulars
Distribution Loss
FY 2018-19
(Approved
MYT Order)
14.76%
FY 2018-19
(Actual)
14.70%
Deviation
(0.06%)
5.5.2 MSEDCL submits that it has been putting best endeavours for lowering the
Distribution Losses to the lowest possible level. MSEDCL has achieved a
significant reduction in distribution losses during recent years. However, loss
reduction is a slow process and becomes increasingly difficult for the loss levels
to come down. The change in sales mix also impact the distribution losses.
5.5.3 MSEDCL requests the Hon’ble Commission to approve the actual Distribution
Loss as per the above table.
5.6
Energy Balance for FY 2018-19
5.6.1 The quantum of sales ( 1,05,135.81 MUs) shown in Table 51 represents the
sales of MSEDCL excluding the sales in the area served by Distribution
Franchisees. MSEDCL has further added 73.89 MUs against the solar offset
units. As per the methodology adopted by Hon’ble Commission for calculating
energy balance of MSEDCL as a whole, the sale to the consumers within the
Distribution Franchisee area has also been considered. Therefore, energy
available for sale for FY 2018-19 is computed as below:
MSEDCL
January 20
55
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 55: Energy Sales for MSEDCL for FY 2018-19
MUs
FY 2018-19
(Approved)
Particulars
Energy Sales by MSEDCL for FY 2018-19 incl.
Offset Solar Units
Add: Category wise sales in DF area
Add: OA Sales (Conventional)
Add: Renewable OA
Total Energy Sales
99,038.77
4,675.16
4,546.50
712.95
1,08,973.38
FY 2018-19
(Actual)
1,05,209.70
4,395.33
3,967.38
854.92
1,14,427.33
Deviation
6,170.93
(279.83)
(579.12)
141.97
5,453.95
5.6.2 MSEDCL has traded surplus power of 1,413 MUs as and when available
through energy exchanges and bilateral trading.
5.6.3 MSEDCL further submits that it is procuring power from various Sources
including MSPGCL, CGS including nuclear power plants, Traders, IPPs and
Renewable Sources. It would be very difficult to differentiate which power is
coming from which source at Transmission periphery. Hence an average interstate loss for the whole year is considered for power sourced from outside the
State of Maharashtra.
5.6.4 MSEDCL also submits that data of metered energy is available at 3 points: at
bus-bar of the generating station, at T <> D interface i.e. at Distribution
Periphery and sales at consumer end. It is further to state that to calculate
Distribution Loss, it considers metered energy.
5.6.5 MSEDCL further submits that the TAPS (NPCIL) and EMCO Power Plants are
connected to CTU and therefore considered as Inter-State sources.
5.6.6 As discussed in paragraph 4.4.12, MSEDCL has considered the inter-state
transmission losses as based on the web based scheduling reports of WRLDC.
5.6.7 MSEDCL further submits that FBSM has been finalized by SLDC only till
February 2018. FBSM is an Inter-Utility settlement and therefore, finalization of
FBSM affects the Inter-Utility quantum resulting into modification of
Transmission Loss of the Intra State Distribution Licensees. MSEDCL further
submits that as discussed in Paragraph 4.4.13, it has computed Intra-State
MSEDCL
January 20
56
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
losses
5.6.8 Considering the energy available for sale for FY 2018-19 as shown in Table 55,
the energy balance for MSEDCL is calculated. The following table shows the
energy balance for FY 18-19.
Table 56: Energy Requirement and Energy Balance FY 2018-19
Sr. No.
1
3
4
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
Particulars
LT Sales (Including D.F)
HT Sales excluding EHV level sales (Including D.F)
HT/LTIP Credit Sales and HT/LT Offset Export Solar units
Total Sales including D.F (Excluding EHV Sales)
OA Sales (Renewables)
OA Sales (Conventional)
Retail Energy Sale to Consumers (Excluding EHV Sales)
Total Power Purchase
Power Purchase Quantum from Intra-State sources
Power Purchase Quantum from Inter-State sources
Inter-State Losses
Power Purchase Quantum from Inter-State sources at MS Periphery
Add: FBSM
Power Quantum handled at Maharashtra Periphery
Infirm Non-PPA Wind Power
Input for OA Consumption
Total Power Purchase Quantum Handled
Surplus Power Traded
Energy Requirement at G<>T Periphery
Intra-State Transmission Loss
Intra-State Transmission Loss
Net Energy requirement at T<>D Periphery
EHV Sales
Net Energy Available for Sale at 33kV
Energy injected and drawn at 33kV
Total Energy Available for Sale at 33kV (Metered Energy at EHV
and 33 kV Input)
Distribution Loss (Excl. EHV Sales)
Distribution Loss (Excl. EHV Sales)
Calculation
UoM
a
b
c
d=a+b+c
e
f
A=d+e+f
B=g+h
g
h
i
j=h*(1-i)
k
l=g+j+k
m
n=f/(1-6%)
o=l+m+n-w
p
q=o-p
r
s=q*r
t=q-s
u
v=t-u
w
MU
MU
MU
MU
MU
MU
MU
MU
MU
MU
%
MU
FY 2018-19
MTR Order
Actual
MU
MU
MU
MU
MU
MU
%
MU
MU
MU
MU
MU
68,236
27,363
95,598
713
4,547
1,00,858
1,27,199
87,596
39,604
3.30%
38,297
1,25,892
4,837
1,30,241
1,27,459
3.30%
4,298
1,25,943
8,116
1,17,827
488
71,527
28,391
73.89
99,991
855
3,967
1,04,813
1,36,435
89,916
46,519
3.07%
45,091
-1,286
1,33,721
909.48
4,221
1,38,278
1,413
1,36,866
3.62%
4,956
1,31,910
9,614
1,22,296
573
C=v+w
MU
1,18,315
1,22,869
D=C-A
E=D/C
MU
%
17,458
14.76%
18,062
14.70%
5.6.9 MSEDCL requests the Hon’ble Commission to approve the Energy Balance as
shown in the table above.
5.7
Power Purchase Expenses for FY 2018-19
5.7.1 MSEDCL has following sources of firm power viz.


Maharashtra State Power Generation Company Limited (MSPGCL)
Purchase from Central Generating Stations

JSW (Ratnagiri)
MSEDCL
January 20
57
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition



Mundra UMPP CGPL
Adani Power Limited
RattanIndia Limited

Emco Power Limited etc.
5.7.2 MSEDCL also buys power from other sources such as Sardar Sarovar and
Pench Hydro project, renewable sources including co-generation, wind power
and solar generation.
5.7.3 In addition to the above sources, In case of any shortfall from approved
sources, when demand exceeds availability or for cost optimization, MSEDCL
sources power from exchange/Traders or other sources at the market price
through competitive bidding in accordance with the Guidelines of MoP.
5.7.4 Following table summarizes the source wise power purchase done by MSEDCL
during the FY 18-19.
Table 57: Source wise Power Purchase for FY 18-19
Source
MSPGCL
NTPC
NPCIL
SSP
Pench
Dodson
JSW
CGPL
Adani Power
EMCO Power
Rattan India
Renewable
Traders
RECs
Short provision for PP
Other Adjsutments
PGCIL Charges
FBSM
Intra State Purchase
Rebate
Total Power Purchase
PP Quantum (MUs)
PP Cost (Rs. Cost)
PP Cost (Rs. /Unit)
Approved
Approved in
Approved in
in MTR
Actual
Deviation
Actual
Deviation
Actual
Deviation
MTR Order
MTR Order
Order
47,691.69
49,423.42
1,731.73
18,715.20
19,648.52
933.32
3.92
3.98
0.05
25,936.59
29,665.17
3,728.58
8,197.40
9,562.31
1,364.91
3.16
3.22
0.06
5,470.24
4,475.32
(994.92)
1,400.42
1,263.15
(137.27)
2.56
2.82
0.26
1,209.94
153.63
(1,056.31)
248.04
31.49
(216.54)
2.05
2.05
(0.00)
136.50
43.71
(92.79)
27.98
8.96
(19.02)
2.05
2.05
(0.00)
115.72
78.01
(37.71)
21.31
24.58
3.27
1.84
3.15
1.31
2,055.10
1,998.60
(56.50)
658.89
686.59
27.71
3.21
3.44
0.23
5,480.26
4,854.00
(626.26)
1,373.08
1,456.84
83.76
2.51
3.00
0.50
20,207.15
21,140.45
933.30
6,898.58
9,126.87
2,228.29
3.41
4.32
0.90
1,370.06
1,313.25
(56.81)
496.05
593.76
97.72
3.62
4.52
0.90
3,717.12
3,717.12
982.87
1,970.07
987.20
5.30
5.30
17,526.06
13,558.44
(3,967.62)
8,881.68
7,745.56
(1,136.13)
5.07
5.71
0.65
6,022.64
6,022.64
2,870.47
2,870.47
4.77
4.77
154.56
154.56
(287.05)
(287.05)
(354.61)
(354.61)
2,688.00
2,808.75
120.75
9.03
9.03
(1,006.07)
(1,006.07)
6.26
6.26
(50.68)
(50.68)
1,27,199
1,36,452.80
9,253
50,589
56,260
5,671
3.98
4.12
0.15
A) MSPGCL – The Hon'ble Commission in Order dated 12th September 2018
in Case No. 196 of 2017 did not approve quantum and cost of the following
generation stations of MSPGCL:

BHUSAWAL-3
MSEDCL
January 20
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Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition



NASHIK- 3,4 & 5
PARAS UNIT-3 & 4
PARLI UNIT-6&7


PARLI - 4&5
Parli Replacement U-8
However, due to coal shortages MSEDCL has purchased power from
above mentioned units. Hence the actual quantum of power from MSPGCL
generating units have increased as compare to that approved by the
Hon’ble Commission.
Further, the Hon'ble Commission did not consider Fixed and Variable cost
for Parli Replacement Unit 8 but MSEDCL has purchased power worth Rs.
751 Cr. from this station.
B) Central Generating Stations- The Hon'ble Commission did not consider the
quantum of the Mauda and NTPC-Solapur generating stations. However,
due to coal shortages MSEDCL has purchased power from the above
mentioned units, hence the actual quantum and cost from central sector
generating units is higher than that approved by the Hon’ble Commission.
Further to this, CERC has approved new tariff for Gandhar in it’s Tariff Order
dated 19.02.2019. Hence the cost has increased.
C) JSW- The increase in cost is due to impact of Rs. 41 Cr. due to Change in
Law.
D) Adani – MSEDCL submits that it has paid an amount of Rs. 1786 Crs along
with carrying cost to M/s. APML towards compensation in domestic coal
shortfall. Such compensation is as per Order of Hon. Commission in case
No. 189 of 2013 dtd. 07.03.2018 and case no 290 of 2018 dtd. 22.12.2018.
M/s. APML submitted claim towards principal of Rs. 2821 Crs and carrying
cost of Rs. 1316 Crs. However, MSEDCL has paid only 50% amount of
claim along with carrying cost.
E) CGPL: Actual MUs are less than approved by Hon'ble Commission.
MSEDCL
January 20
59
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
However, there is increase in cost is due to Change in Law of Rs. 108 Crs.
F) CERC published new escalation indices in June’ 2018 & July’ 2018 and
revised the escalation index applicable to Domestic coal and transportation
from April’ 2013. This has resulted in increase in Energy Charges. Such
revision in index has resulted in increased energy charges by Rs. 0.26 p.u.
approximately in respect of APML 125 MW, 1200 MW & 440 MW PPAs
(1320 MW PPA does not include escalable tariff component). Since, such
indices were revised from April 2013; MSEDCL had to make payment of Rs.
102.22 Crs. pertaining to period April 2013 to May 2018 to M/s. APML during
FY 2018-19. Further, the Capacity charges for APML 440 MW PPA are
more than that of approved (Rs. 447 Crs against Rs. 77 approved in MTR
order).
G) RattanIndia: Hon’ble Commission had not approved any quantum from
Rattan India, however, owing to coal shortage and demand increase,
MSEDCL had to buy power from RattanIndia. Hon’ble Commission had
approved only Capacity charges of Rs. 983 Crs. However, MSEDCL bought
3,717.12 MUs from RattanIndia. Due to this there is a deviation of Rs.
987.20 Crs in RattanIndia.
H) EMCO- MSEDCL had projected variable cost of Rs. 1.83 p.u. for the FY
2018-19. However, due to change in CERC index towards fuel and
transportation from FY 2013, there is increase in escalable energy charges
by Rs. 0.21 p.u. (Impact is around Rs. 35 Crs.); Moreover, CERC has
approved some change in law events in favor of M/s. EMCO Ltd, such as
evacuation facility charges, Busy season and development surcharge etc.
(Impact is around Rs.30 Crs.), Other charges are increased more than that
projected. Such increase constitute around Rs. 20 Crs. MSEDCL has paid
an amount of Rs. 11.5 Crs towards domestic coal shortfall i.e. (NCDP
policy).
I) Short Term PP- Due to increase in demand for the months of Sept 2018 and
Oct 2018, MSEDCL has purchased short term power which increased in PP
cost by Rs.1672.14 Cr.
MSEDCL
January 20
60
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
J) MSEDCL further submits that in the Audited Accounts of FY 18-19, it has
made a provision of Rs.2,390 Crs towards the shortfall in achieving the
renewable purchase obligation (RPO) for FY 18-19. However, since it is only
provision, MSEDCL has not claimed the same in actual cost of power
purchase for FY 18-19. MSEDCL reserves its right to claim the same on
actual basis as and when such expense is incurred.
5.7.5 MSEDCL most respectfully submits that the above changes are beyond the
reasonable control of MSEDCL but well within the regulatory provisions for
consideration in true up. Hence, MSEDCL requests the Hon’ble Commission to
approve the power purchase expenses as per Audited Accounts.
5.7.6 MSEDCL submits that details of RE Purchase for FY 18-19 are provided in
following table.
FY 2018-19
Quantum (MU) Cost (in Rs. Crs.)
Wind
6619.70
3539.75
SHP
315.60
134.68
Bagasse based Cogen.
4173.81
2638.19
Biomass
488.89
282.00
MSW
0.97
0.47
Total Non-Solar
11,598.97
6,595.09
SPV
1957.64
1150.47
Solar REC
upto 2015-16
1360
152.42
2016-17
19
2.13
Total Solar REC
1379
154.55
Total Solar
1957.64
1150.47
Source
5.7.7 MSEDCL would like to make following submission regarding RPO fulfilment for
FY 18-19
MSEDCL
January 20
61
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Solar Target:
MSEDCL has procured 2279 MUs of Solar Power during FY 2018-19 and has
the standalone shortfall of 1321 MUs for FY 2018-19.
Non-Solar Target:
MSEDCL has procured 12468 MUs of Non-Solar Power during FY 2018-19 and
has the standalone shortfall of 1933 MUs for FY 2018-19.
5.8
Transmission Charges for FY 18-19
5.8.1 MSEDCL submits the actual transmission charges and SLDC charges paid to
MSETCL and MSLDC as summarized in following table.
Table 58: Transmission Charges paid to Transmission Licensee for FY 2018-19
Rs. Crs
Particulars
Intra-State Transmission Charges
MSLDC Charges
Total
FY 2018-19
(Approved)
4,288.40
14.12
4,302.53
FY 2018-19
(Actual)
4,760.61
14.89
4,775.50
Deviation
472.21
0.77
472.98
5.8.2 MSEDCL submits that it pays the transmission charges to STU as per the
InSTS Order issued by Hon’ble Commission from time to time. MSEDCL
submits that the Hon’ble Commission in the MTR Order has approved the IntraState Transmission Charges based on Order for InSTS Charges in Case No.
265 of 2018. The said Order was applicable from September 2018. MSEDCL
Made payment up Aug. 2018 as per MYT Order in case No. 48 of 2016.
Thereafter, payment made as per MTR order in case No. 195 of 2017. The
transmission Charges reduced from Rs. 450 Crs per month to Rs. 358 Crs. Per
month Due to this, there a deviation in the Intra-State Transmission Charges.
However, Hon’ble Commission approved the reduced Transmission Charges
for entire year.
5.8.3 MSEDCL requests the Hon’ble Commission to approve the actual
Transmission and MSLDC Charges as per the Audited Accounts as shown in
the above table.
MSEDCL
January 20
62
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
5.9
Fixed Costs for FY 2018-19
5.9.1 Based on the Capital Cost and the consequent Capitalized Expenditure, Equity
Component and Normative Debt, the fixed cost of MSEDCL for FY 2018-19
(excluding fixed component of PP cost) has been determined in accordance
with the provisions of MYT Regulations 2015 outlined thereof. As outlined under
the regulations, the fixed cost for MSEDCL has been determined under the
following major heads long with other items of expenditure:
 Operation and Maintenance Expenses


Depreciation
Interest and Finance Charges


Interest on Working Capital
Return on Equity
5.9.2 Net Annual Revenue Requirement has been computed after netting off
Expenses capitalized.
5.9.3 Head wise comparison has been made between the values approved by the
Hon’ble Commission vide MTR Order dated 12th September 2018 in Case no.
195 of 2017 for FY 2018-19 and the values as per the audited accounts.
5.10 Actual Operation & Maintenance Expenses for FY 2018-19
5.10.1 Operations and Maintenance (O&M) Expenses of the company consists of
Employee Expenses, Administrative and General Expenses and Repairs and
Maintenance Expenses
5.10.2 MSEDCL submits that as per audited accounts it has incurred total O&M
expenses of Rs. 6,401.01 Cr. for FY 2018-19.
Table 59: Actual O&M Expenses for FY 2018-19
Particulars
Actual O&M Expenses
Rs. Crs
Actual
6,401.01
5.10.3 Head-wise details of employee expenses, A&G Expenses and R&M Expenses
MSEDCL
January 20
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Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
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Main Petition
have been provided in Regulatory Formats.
5.10.4 In the following sub-section, MSEDCL has given the detailed reasons for
change in the O&M cost for FY 18-19.
5.11 Normative Operation & Maintenance Expenses for FY 2018-19
5.11.1 MSEDCL submits that Regulation 72 and Regulation 81 of the MERC (MYT)
(1st Amendment) Regulations 2017provides for the O&M Expenses norms for
Distribution Wires Business and Retail Supply of electricity respectively.
5.11.2 Hon’ble Commission has issued an Amendment to the MERC (MYT)
Regulations 2015. As per the said Amendment relating to the Truing-up of O&M
expenses:
”72.3….. Provided that, in the Truing-up of the Operation and Maintenance
expenses for any particular year of the Control Period, an inflation factor with
30% weightage to the average yearly inflation derived based on the monthly
Wholesale Price Index of the past five financial years (including the year of
Truing-up) and 70% weightage to the average yearly inflation derived based on
the monthly Consumer Price Index for Industrial Workers (all-India) of the
past five financial years (including the year of Truing-up), as reduced by an
efficiency factor of 1% or as may be stipulated by the Commission from time to
time, shall be applied to arrive at the permissible Operation and Maintenance
Expenses for that year.”
5.11.3 Following table provides the year-on-year variations in CPI and WPI for the last
5 years. Considering the average WPI and CPI and provisions of the
Amendment to the MERC (MYT) Regulations 2015, MSEDCL has calculated
the escalation factor as shown in the following table.
MSEDCL
January 20
64
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 60: Escalation factor for FY 2018-19
WPI
(2011-12)
Year
FY 2013-14
112.50
FY 2014-15
113.88
FY 2015-16
109.72
FY 2016-17
111.62
FY 2017-18
114.88
FY 2018-19
119.80
5 Yrs Avg
Weight
30%
Rate with 1% reduction
Annual
Increase
1%
-4%
2%
3%
4%
1.30%
0.39%
2.83%
CPI
(2001)
236.00
250.83
265.00
275.92
284.42
299.92
70%
Annual
Increase
6%
6%
4%
3%
5%
4.92%
3.44%
5.11.4 Considering the above escalation factor and O&M expenses for FY 15-16 after
considering the impact of sharing of gains computed in Chapter 2, MSEDCL
has calculated the O&M Expenses for Wires Business and Retail Supply of
electricity for FY 18-19 (in the ratio of allocation matrix provided in the MYT
Regulations 2015), as shown in following table.
Table 61: O&M Expenses for FY 2018-19
Particulars
O&M Expenditure for Wires business
O&M Expenditure for Retail Supply business
Operation and Maintenance Expenses
Rs. Crs
FY 2018-19
FY 2018-19
Deviation
(Approved) (Normative)
4,773.68
4,492.93
(280.76)
2,570.44
2,419.27
(151.18)
7,344.13
6,912.20
(431.93)
5.11.5 MSEDCL requests the Hon’ble Commission to allow the O&M Expenses as
computed in above table.
5.12 Capitalisation for FY 2018-19
5.12.1 MSEDCL has achieved capitalization of Rs. 5,240.66 Cr. in FY 2018-19 as
against Rs. 4,565.00 Cr. approved by Hon’ble Commission. Following table
shows the capitalization in FY 2018-19.
MSEDCL
January 20
65
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 62: Capitalisation for FY 2018-19
Rs. Crs
Particulars
Total Capitalisation
FY 2018-19
(Approved)
4,565.00
FY 2018-19
(Actual)
5,240.66
Deviation
675.66
5.12.2 As per the Annual Accounts the addition to GFA is Rs. 5,334.45 Crs. whereas
in Form 4.2 MSEDCL has shown Capitalization as Rs. 5,240.66 Cr. MSEDCL
submits that in Form 4.2, only scheme wise details have been shown whereas
in Annual Accounts the Addition to GFA is shown in totality including land and
land rights, buildings etc. The detail of which is shown in the following table.
Table 63: Capitalization as per Audited Accounts for FY 2018-19
Sr. No.
1
2
3
4
5
6
7
8
9
Particulars
Capitalisation as per Note of the Accounts
Capitalisation as per Form 4
Other Assets
Land
Buildings
Vehicles
Furniture & Fixtures
General Assets
Other Civil Works
Total (2 to 8)
Amount
(Rs. Crs)
5,334.45
5,240.66
5.63
20.24
1.53
46.23
20.16
5,334.45
5.12.3 MSEDCL further submits that the additional details of general assets are
provided in following table.
Particulars
Hydraulic works
Communication Equipment
IT Equipment
Office Equipment
Other Assets
Total
MSEDCL
January 20
Amount
Rs. Crs
1.42
0.41
1.96
29.92
12.52
46.23
66
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
5.12.4 Hon’ble Commission in its previous Orders has allowed the capitalization
towards schemes not forming part of any specific scheme. MSEDCL further
submits that Hon’ble Commission has accordingly revised the GFA to that
extent as well. Therefore, MSEDCL requests the Hon’ble Commission to
approve the capitalization as per the Audited Accounts and revise the GFA
accordingly.
5.13 Depreciation for FY 2018-19
5.13.1 MSEDCL submits that in the MTR Petition, it has requested the Hon’ble
Commission to reconcile the GFA and accordingly revise the opening GFA for
FY 2015-16. In line with the approval of Rs. 927 Crs, MSEDCL has revised the
GFA from FY 2007-08 onwards in Chapter 3.
5.13.2 The Opening GFA as per MSEDCL’s Audited Accounts is Rs. 49,760.55 Cr.
(excluding the impact of Final Transfer Scheme/Restructuring Plan and
subsequent revaluation). Accordingly, the depreciation has been reworked on
a pro-rata basis on the revised Opening GFA for FY 2018-19 for the purpose of
True-Up which is summarized below.
Table 64: Depreciation for FY 2018-19
FY 18-19
(Approved)
Particulars
Opening GFA for FY 18-19 (Actual)
Opening GFA for FY 18-19 (Regulatory*)
Depreciation (Actual)
Depreciation (Claimed in proportion to Actual)
* Excluding consumer contribution and grants
2,329.48
FY 18-19
(Actual)
49,760.55
2,601.18
2,464.00
5.13.3 MSEDCL requests the Hon’ble Commission to allow the Depreciation as
computed in above table.
5.14 Funding Pattern for FY 2018-19
5.14.1 The funding pattern for FY 2018-19 for the capitalization achieved by MSEDCL,
in proportion to the funding pattern of capital Expenditure, is presented in the
following table:
MSEDCL
January 20
67
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 65: Funding Pattern of Capitalization for FY 2018-19
Particular
Total Capitalisation
Less: Consumer Contribution
Less: Grants
Balance to be funded
Equity
Debt
Amount
(Rs. Crs)
5,240.66
626.45
2,057.93
2,556.28
365.54
2,190.74
Funding
Mix (%)
14.30%
85.70%
5.14.2 MSEDCL requests the Hon’ble Commission to approve the funding mix as
submitted in above table.
5.15 Interest Expenses for FY 2018-19
5.15.1 MSEDCL has computed the interest expenses on normative basis linked to the
normative opening loan and normative loan addition during the year. In line with
the approval of Rs. 927 Crs, MSEDCL has revised the normative opening loan
from FY 2007-08 onwards as in Chapter 3. Further, for arriving at the interest
rate, MSEDCL has considered the weighted average interest rate of actual loan
portfolio of FY 2018-19. The computation of weighted average interest rate of
actual loan portfolio is shown in following table.
Table 66: Rate of Interest for FY 2018-19
Particulars
Actual (Rs.
Crs)
a
14,945.76
b
1,592.27
c
2,355.38
d=a+b-c
14,182.66
e=Avg(a,d)
14,564.21
f
1,496.49
g=f/e
10.28%
Formula
Outstanding Loan at the start of the year
Loan drawal during the year
Loan repayment during the year
Balance outstanding at the end of the year
Average Loan for the Year
Interest Expense incurred during the year
Weighted Average Interest rate
5.15.2 Regulation 29.3 of the MERC (MYT) Regulations 2015 provides for loan
repayment equal to depreciation. The relevant extract is reproduced below:
“29.3 The repayment during each year of the Control Period from FY 2016-17
to FY 2019-20 shall be deemed to be equal to the depreciation allowed for that
year.”
MSEDCL
January 20
68
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
5.15.3 MSEDCL further submits that for FY 18-19, the amount of Rs.15.76 Crs was
inadvertently considered twice in addition to asset. The same was corrected;
however, instead of reduction to addition in asset, it is erroneously shown as
retirement of asset. Since there is no retirement of assets, MSEDCL has not
reduced the loan to that extent. MSEDCL further submits that since there is
only adjustment and not actual reduction, it has claimed the normative interest
on balance loan.
5.15.4 Considering the normative opening loan, normative loan addition during the
year and loan repayment equal to depreciation and the weighted average
interest rate of actual loan portfolio, MSEDCL has computed the interest
expenses on normative basis as summarized in table below:
Table 67: Interest Expenses for FY 2018-19
Rs. Crs
Particulars
Normative Outstanding Loan at beginning of the year
Less: Reduction of Normative Loan due to retirement of assets
Loan Drawal
Loan Repayment
Normative Balance Outstanding at the end of the year
Average Balance of Net Normative Loan
Interest Rate
Interest Expenses
FY 2018-19
FY 2018-19
(Approved) (Normative)
14,334.50
13,277.61
1,680.60
2,190.74
2,329.35
2,464.00
13,685.75
13,004.36
14,010.12
13,140.99
11.37%
10.28%
1,592.66
1,350.25
Deviation
(1,056.88)
510.14
134.65
(681.39)
(869.14)
(242.40)
5.15.5 MSEDCL submits that Hon’ble Commission had approved interest expenses of
Rs. 1,592.66 Cr. while the normative Interest Expenses for MSEDCL works out
to be Rs. 1,350.25 Cr. for FY 2018-19.
5.15.6 MSEDCL requests the Hon’ble Commission to approve the normative interest
expenses as submitted in above table.
5.16 Interest on Working capital for FY 2018-19
5.16.1 MSEDCL submits that Regulations 31.3 of the MERC (MYT) Regulations 2015
provides for Interest on Working Capital for Wire business of electricity. Further,
the MYT Regulations 2015 also provides that for the purpose of Truing-up for
any year, interest on working capital shall be allowed at a rate equal to the
MSEDCL
January 20
69
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
weighted average Base Rate prevailing during the concerned Year plus 150
basis points.
5.16.2 MSEDCL has calculated the interest on working capital at 9.89% as computed
in following table.
Table 68: Calculation of Weighted Avg. Arte of MCLR
To
Days
From
01-04-2018
30-04-2018
30.00
01-05-2018
31-05-2018
31.00
01-06-2018
30-06-2018
30.00
01-07-2018
31-07-2018
31.00
01-08-2018
30-08-2018
30.00
01-09-2018
30-09-2018
30.00
01-10-2018
31-10-2018
31.00
01-11-2018
09-12-2018
39.00
10-12-2018
09-01-2019
31.00
10-01-2019
09-02-2019
31.00
10-02-2019
09-03-2019
29.00
10-03-2019
31-03-2019
22.00
365.00
Weighted Avg. Rate
Rate
8.15%
8.15%
8.25%
8.25%
8.25%
8.45%
8.50%
8.50%
8.55%
8.55%
8.55%
8.55%
8.39%
Plus 150 Basis Points
Total Weighted Avg. Rate
Days X Rate
244.5%
252.7%
247.5%
255.8%
247.5%
253.5%
263.5%
331.5%
265.1%
265.1%
248.0%
188.1%
3062.55%
1.50%
9.89%
5.16.3 MSEDCL further submits that the amendment to the Regulation 29.11 of MYT
Regulations 2015 provides for Interest on Security Deposit at MCLR plus 150
basis points. MSEDCL General Commercial Circular No. 271 for Rate of
Interest on Consumer Security Deposit @ 9.65% per annum (MCLR plus 150
basis points) for FY 2018-19 is attached as Annexure 5 to this Petition.
MSEDCL
January 20
70
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 69: Interest on Working Capital for Wire business for FY 18-19
Rs. Crs
Particulars
Computation of Working Capital (Wire Business)
O&M expenses for a month
Maintenance Spares at 1% of Opening GFA
1.5 months of expected revenue from charges for use of
Distribution wires
Less: Amount held as SD from Distribution System Users
Total Working Capital Requirement
Rate of Interest (% p.a.)
Interest on Working Capital
Actual Working Capital Interest
Interest on Security Deposit
Rate of Interest (% p.a.)
Interest on Security Deposit
FY 2018-19
(Approved)
FY 2018-19
(Normative)
397.81
481.07
374.41
466.39
1,206.11
1,252.12
46.02
(768.29)
1,316.70
9.45%
124.43
(754.35)
1,338.57
9.89%
132.39
66.22
13.94
21.88
9.65%
74.14
66.53
Deviation
(23.40)
(14.68)
7.96
(7.61)
5.16.4 MSEDCL requests the Hon’ble Commission to allow the Interest on Working
capital along with the actual interest on security deposit for wire business as
shown in above table.
5.16.5 MSEDCL further submits that Regulation 31.4 of the MERC (MYT Regulations
2015) provides for Interest on Working Capital for Retail Supply business of
electricity. MSEDCL has calculated the interest on working capital at as 9.89%
computed above and paid interest on security deposit at 9.65% i.e. MCLR plus
150 basis points.
MSEDCL
January 20
71
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 70: Interest on Working capital for Supply business for FY 18-19
Rs. Crs
Particulars
Computation of Working Capital (Supply Business)
O&M expenses for a month
Maintenance Spares at 1% of Opening GFA
1.5 months equivalent of the expected revenue from sale of
electricity at the prevailing Tariff and including revenue from
CSS and Additional Surcharge
Less: Amount held as security deposit
Less: One month equivalent of cost of Power Purchase,
Transmission Charges and MSLDC Charges
Total Working Capital Requirement
Rate of Interest (% p.a.)
Interest on Working Capital
Actual Working Capital Interest
Interest on Security Deposit
Rate of Interest (% p.a.)
Interest on Security Deposit
FY 2018-19
(Approved)
FY 2018-19
(Normative)
214.20
53.45
201.61
51.82
8,220.15
9,263.40
(6,914.61)
(6,789.13)
125.48
(4,574.33)
(5,086.32)
(511.99)
(3,001.14)
9.45%
-
(2,358.62)
9.89%
595.95
642.51
9.65%
667.26
598.75
Deviation
(12.60)
(1.63)
1,043.25
(68.51)
5.16.6 MSEDCL requests the Hon’ble Commission to allow the interest on working
capital and actual security deposit for supply business as shown in above table.
5.17 Other Finance Charges for FY 2018-19
5.17.1 MSEDCL submits that it has incurred Other Finance Charges amounting to Rs.
26.11 Crores during the FY 2018-19. These are the fund raising charges i.e.
Guarantee Charges, Finance Charges, Stamp Duty and Service Fee.
Table 71: Other Finance Charges for FY 2018-19
Particulars
Guarantee Charges
Finance Charges
Stamp Duty
Service Fee (Fund-raising charges)
Total
Rs. Crs
FY 2018-19
(Actual)
19.22
0.95
5.93
26.11
5.17.2 MSEDCL submits that these charges depend on the no. of loans, LC required
to be given to the Power Suppliers, documentation for availing long term and
working capital loans. These charges are, thus, beyond reasonable control of
MSEDCL
January 20
72
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
MSEDCL and hence required to be allowed on actual basis. Therefore,
MSEDCL humbly requests the Hon’ble Commission to allow the Other Finance
Charges as per the Audited Accounts.
5.18 Provision for Bad Debts for FY 2018-19
5.18.1 MSEDCL submits that bad debts are inseparable incidents of the business of
electricity distribution and retail supply.
5.18.2 Regulation 73 and 82 of the MYT Regulations, 2015 specifies that a provision
of bad and doubtful debt may be allowed up to 1.5% of the amount shown as
trade receivables or receivables in the Audited Accounts of the distribution
licensee duly allocated for wires and supply business respectively.
5.18.3 MSEDCL submits that Provision of bad debt generally depends on the nature
of the business and the risk involved in the business. A business typically
estimates the amount of bad debt based on historical experience.
5.18.4 MSEDCL has written off Rs. 4,019.34 Cr. towards Bad Debt in FY 2018-19. The
regulatory opening balance provision for FY 2018-19 was Rs. 1,764.11 Cr.
Thus after the write-off during FY 2018-19 the closing balance provision for Bad
and Doubtful Debt becomes nil.
5.18.5 Category wise details of the actual bad debt written off is summarised below:
Category
LT AG
LT PD consumers
HT industrial
HT PD consumers
Consumers from
Bhiwandi DF Area
Total
Total more
than 15
years
0.00
489.44
0.01
0.00
169.20
658.65
Abhay
Yojana
Amnesty
scheme
0.10
0.10
AG Interest
prior to Mar
2013
3358.36
Total W/off
(Rs. Crs)
0.46
0.01
1.77
3358.36
489.99
0.02
1.77
2.24
169.20
4019.34
3358.36
5.18.6 MSEDCL has computed the provision for bad and doubtful debts for FY 201819 as per the provisions of the MYT Regulations 2015 considering the
MSEDCL
January 20
73
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
receivables as per Audited Accounts as shown in following table:
Table 72: Computation of provision for bad and doubtful debts for FY 2018-19
Rs. Crs
FY 2018-19
(Approved)
Particulars
Opening Balance of Provision for bad and
doubtful debts
Receivables for the year
Provision for bad & doubtful debts during the
year
Provision for bad & doubtful debts during
the year
Actual bad and doubtful debts written off
Closing Balance of Provision for bad and
doubtful debts
Closing Balance as a % of receivables
FY 2018-19
(Actual)
Deviation
1,612.10
1,764.11
152.00
32,768.47
48,842.02
16,073.55
1.50%
1.50%
26.32
-
732.63
706.31
4,019.34
4,019.34
1,638.42
-
5.0%
-
(1,638.42)
5.18.7 Considering the allocation matrix provided by Hon’ble Commission in the MYT
Regulations 2015, MSEDCL has worked out the provision for Bad Debt for wire
and retail supply businesses respectively as shown above.
Table 73: Provision for Bad debts for FY 2018-19
Rs. Crs
Particulars
Bad Debt Provision for Wires business
Bad Debt Provision for Retail Supply business
Bad Debt Provision
FY 2018-19
(Approved)
2.63
23.69
26.32
FY 2018-19
(Actual)
73.26
659.37
732.63
Deviation
70.63
635.68
706.31
5.18.8 The total Bad Debt provision for FY 2018-19 works out to be Rs. 732.63 Cr.
as against Rs. 26.32 Cr. MSEDCL humbly requests the Hon’ble Commission
to approve the same.
5.19 Other Expenses for FY 2018-19
5.19.1 The other expenses of MSEDCL comprise of the expenditure on account of
Non-Moving items written off, interest to suppliers/contractors, Incentive to
distribution franchisee and other expenses viz. compensation for injuries to staff
and outsiders. MSEDCL accordingly submits the other expenses as shown in
the table below.
MSEDCL
January 20
74
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 74: Other Expenses FY 2018-19
Rs. Crs
Particulars
Compensation for injuries,death to staff
Compensation for injuries,death to others
Loss on obsolescence of fixed Assets
Sundry debit balances written off
Non Moving Items
Interest to Suppliers/Contractors
Others
Other Expenses (incl. payable to DSL towards
damages in terms of Arbitral Award dt.
18.06.2004)
Sundry debit balances written off
Other Expenses for previous years
Expected Credit loss on other receivables
TOTAL
FY 2018-19
(Approved)
1.29
15.55
3.63
2.51
FY 2018-19
(Actual)
1.14
13.84
1.49
1.64
15.36
1.94
15.74
43.49
66.46
6.90
7.02
65.07
Deviation
(0.15)
(1.72)
1.49
1.64
11.73
1.94
13.23
6.90
7.02
(43.49)
(1.39)
5.19.2 MSEDCL submits that the amount under the head “interest to
suppliers/contractor” as per the Audited Accounts included Delayed Payment
Charges / Surcharge payable to MSPGCL, MSETCL, IPPs & Wind Generators
for FY 2018-19. MSEDCL has not claimed the same.
5.19.3 MSEDCL hereby requests the Hon’ble Commission to approve the Other
Expenses as per actual expenses incurred by MSEDCL as given in the above
table.
5.20 Contribution to Contingency Reserves for FY 2018-19
5.20.1 MSEDCL submits that it has invested Rs. 126.00 Cr. towards contribution to
contingency reserves. Accordingly, the same is being claimed in the ARR of FY
2018- 19.
Table 75: Contingency Reserve for FY 2018-19
Rs. Cr.
Particulars
Contribution to Contingency Reserves
FY 2018-19 FY 2018-19
Deviation
(Approved) (Actual)
126.00
126.00
5.20.2 MSEDCL further submits that the investment proof for the said amount is
MSEDCL
January 20
75
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
attached as Annexure 8 to this Petition. MSEDCL requests the Hon’ble
Commission to allow the contribution to contingency reserves as submitted in
above table.
5.21 Income Tax
5.21.1 During the FY 18-19, MSEDCL has paid Income Tax amounting to Rs. 215.08
Crs. MSEDCL has claimed the income tax as per the Audited Accounts.
MSEDCL requests the Hon’ble Commission to allow the same.
Table 76: Income Tax for FY 18-19
Particulars
Income Tax Wire Business
Income Tax Supply Business
Total Income Tax
Rs. Cr.
FY 2018-19 FY 2018-19
Deviation
(Approved)
(Actual)
193.57
193.57
21.51
21.51
215.08
215.08
5.22 Incentives and Discounts for FY 2018-19
5.22.1 MSEDCL submits that during FY 2018-19, it has paid Rs. 287.38 Crs of
incentives/discounts to the consumers for timely payment of bills as against Rs.
258.91 Crs approved by Hon’ble Commission in its MTR Order dated 12th
September 2018.
Table 77: Incentives/Discount for FY 18-19
Rs. Crs
Particulars
Incentives and Discount
FY 2018-19
(Approved)
258.91
FY 2018-19
(Actual)
287.38
Deviation
28.47
5.22.2 MSEDCL requests the Hon’ble Commission to allow the incentives/discounts
as per the Audited Accounts for FY 2018-19.
5.23 RLC Refund for FY 2018-19
5.23.1 MSEDCL during FY 2018-19 has made refund of Rs. 1.67 Crs of RLC.
MSEDCL requests the Hon’ble Commission to allow the RLC Refund for FY
2018-19 as per Audited Accounts as shown below. MSEDCL also request the
Hon’ble Commission to allow the RLC refund as and when it refunds the same
MSEDCL
January 20
76
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
to eligible consumers in future.
Table 78: RLC Refund for FY 18-19
Rs. Crs
Particulars
RLC Refund
FY 2018-19
(Approved)
-
FY 2018-19
Deviation
(Actual)
1.67
1.67
5.24 Return on Equity for FY 2018-19
5.24.1 Regulation 28.2 of MERC (MYT) Regulations 2015, provides for Return on
Equity (RoE) for Distribution Licensee for both Wire and Supply Business. In
line with the approval of Rs. 927 Crs, MSEDCL has revised the normative
opening equity from FY 2007-08 onwards in Chapter 3. Further, considering
the funding pattern in Table 65, MSEDCL has considered the equity addition
during the year. The return on equity capital is allocated in the ratio of Fixed
Assets between the Wires and Retail Supply Business, i.e. 90% to Wires
Business and 10% to Supply Business. Therefore, the capital expenditure,
grants, equity and capitalisation is divided into wires and supply business in the
ratio of 90:10.
5.24.2 MSEDCL submits that for FY 18-19, the amount of Rs.15.76 Crs was
inadvertently considered in addition to asset twice. The same was corrected;
however, instead of reduction to addition in asset, it is erroneously shown as
retirement of asset. Since there is no retirement of assets, MSEDCL has not
reduced the equity to that extent.
5.24.3 Considering the provisions of the MYT Regulations 2015, MSEDCL has
computed the return on equity as shown in following tables.
MSEDCL
January 20
77
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 79: RoE for Wires Business for FY 18-19
Rs. Crs
FY 2018-19
(Approved)
Particulars
Return on Equity (Wires Business)
Regulatory Equity at the beginning of the year
Equity portion of Assets Capitalisation
Equity portion of Assets Decapitalised
Regulatory Equity at the end of the year
Return on Computation
Return on Regulatory Equity at the beginning of the year
- 15.5%*(1)
Return on Normative Equity portion of Assett
Capitalization - 15.5%*(2)/2
Interest on Equity portion above 30% equity
Total Return on Regulatory Equity
FY 2018-19
(Normative)
11,066.00
633.43
11,699.43
10,224.25
328.98
10,553.23
1,715.23
1,584.76
49.09
25.50
1,764.32
1,610.25
Deviation
(841.75)
(304.44)
(1,146.20)
(130.47)
(23.59)
(154.07)
Table 80: RoE for Retail Supply Business for FY 18-19
Rs. Crs
Particulars
FY 2018-19
(Approved)
FY 2018-19
(Normative)
1,229
70
1,299
1,136
37
1,173
(92.52)
(33.83)
(126.35)
215.08
198.88
(16.19)
6.16
3.20
(2.96)
221.23
202.08
(19.15)
Return on Equity (Supply Business)
Regulatory Equity at the beginning of the year
Equity portion of Assets Capitalisation
Equity portion of Assets Decapitalised
Regulatory Equity at the end of the year
Return on Computation
Return on Regulatory Equity at the beginning of the
year - 17.5%*(1)
Return on Normative Equity portion of Assett
Capitalization - 17.5%*(2)/2
Interest on Equity portion above 30% @11.37%p.a.
Total Return on Regulatory Equity
Deviation
5.24.4 MSEDCL requests the Hon’ble Commission to allow the RoE as computed
above.
5.25 Sharing of Efficiency Gains & Losses for FY 2018-19
5.25.1 Regulations 9, 10 and 11 of the MYT Regulations, 2015 specify the controllable
and uncontrollable parameters, mechanism of pass-through of gains and
losses on account of uncontrollable parameters, and the mechanism for their
MSEDCL
January 20
78
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
sharing on account of controllable parameters as follows:
“11.1 The approved aggregate gain to the Generating Company or Licensee or
MSLDC on account of controllable factors shall be dealt with in the following
manner:—
(a) Two-third of the amount of such gain shall be passed on as a rebate in Tariff
over such period as may be stipulated in the Order of the Commission under
Regulation 8.4;
(b) The balance amount of such gain shall be retained by the Generating
Company or Licensee or MSLDC.
11.2 The approved aggregate loss to the Generating Company or Licensee or
MSLDC on account of controllable factors shall be dealt with in the following
manner:—
(a) One-third of the amount of such loss may be passed on as an additional
charge in Tariff over such period as may be stipulated in the Order of the
Commission under Regulation 8.4;
(b) The balance amount of such loss shall be absorbed by the Generating
Company or Licensee or MSLDC.”
5.25.2 Parameters such as O&M Expenses, Interest on Working Capital for which
specific norms have been specified in the MYT Regulations, have been
calculated on normative basis.
5.25.3 As these parameters need to be treated as controllable under the MYT
Regulations 2015, any variation in the actual expenses as against the
permissible normative levels has been shared between MSEDCL and
consumers.
5.25.4 O&M Expenses: The actual O&M Expenses as per the Audited Accounts for
FY 2018- 19 are lower than that of allowed on normative basis.
5.25.5 Interest on Working Capital: The actual IoWC expense as per the Audited
Accounts for FY 2018-19 is higher than that allowed on normative basis.
5.25.6 Distribution Loss: The actual distribution loss (excluding EHV Sales) for FY
2018-19 is lower than that approved in the MTR Order.
MSEDCL
January 20
79
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
5.25.7 The summary of sharing of efficiency gains/(loss) on account of O&M Expenses
and IoWC is shown in the Table below:
Table 81: O&M Expenses & Interest on Working Capital for FY 18-19
Particulars
O&M Expenses
Interest on Working Capital
Normative
6,912.20
132.39
Rs. Crs
2/3 of
Net
1/3 of Efficiency
Efficiency
Entitlement
Gains/Losses
gains/Losses
after sharing
511.19
340.79
170.40
6,571.41
(529.78)
(353.18)
(176.59)
308.98
Gains/
(Loss)
Actual
6,401.01
662.17
5.25.8 MSEDCL submits that it has computed the sharing of efficiency gain/ loss
considering 14.76% as approved distribution loss target (Excluding EHV Sales)
against the actual distribution losses (Excluding EHV Sales)
5.25.9 The summary of sharing of efficiency gains/(loss) on account of efficiency in
Distribution Losses is shown in the Table below:
Table 82: Sharing of Gains/Losses by MSEDCL & Consumers for FY 18-19
Particulars
Actual Distribution Loss
MYT approved Loss
Sales Excl. EHV sales in MUs
EHV Sales in MUs
Total Sales in MUs
IntraSTS loss (Proposed)
Power Requirement at Ex-Bus Periphery (Actual) in MUs
Power Requirement at Ex-Bus Periphery (Normative) in MUs
Additional/ (lower) Power purchase due to higher distribution loss in MUs
Marginal Variable Cost of Power Purchase Rs./kWh
Additional/(Lower) Power purchase Cost due to lower distribution loss
Efficiency gain/(loss) to be retained by MSEDCL
Efficiency gain/(loss) to be borne by the consumers
Amount
(Rs. Crs)
14.70%
14.76%
99,991
9,614
1,09,605
3.62%
1,31,602
1,31,688
(85.6)
4.17
(35.74)
23.83
11.91
5.25.10
The total impact of sharing of gains and losses of various components
have been summarized in the Table below:
MSEDCL
January 20
80
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 83: Impact of Sharing of Gains/Losses for FY 18-19
Particulars
O&M Expenses
IoWC
Impact of Gain in Distribution Loss passed on Consumers
Total Impact of Sharing of Gains/(Losses)
Amount
Rs. Crs
(340.79)
176.59
11.91
(152.29)
5.25.11
MSEDCL requests the Hon’ble Commission to allow the sharing of gains
and losses as submitted in above table.
5.26 Impact of payment to MPECS for FY 2018-19
5.26.1 Hon’ble Commission in the MYT Order dated 3rd November 2016 has approved
following amounts towards payment to MPECS.
Financial Year
FY 17-18
FY 18-19
FY 19-20
Amount in Rs. Cr.
46.20
43.18
40.17
5.26.2 Hon’ble Commission in the MTR Order has approved the amount towards
payment to MPECS as the same was allowed under the MYT Order. The
Hon’ble Commission in the MTR Order also ruled that it shall consider the
actual amount towards this head at the time of truing up of FY 2018-19.
5.26.3 Accordingly, MSEDCL has claimed Rs. 43.43 Cr. towards the actual payments
to MPECS for FY 2018-19.
5.27 Past Period Adjustment by Commission for FY 2018-19
5.27.1 In the MTR Petition, MSEDCL had submitted that in the MYT Order dated 3rd
November 2016, the Hon’ble Commission had considered the Net Impact of
Past Period and MSPGCL MYT Order in Case No. 46 of 2016 while approving
the revenue for MSEDCL from revised tariffs for the third Control Period.
MSEDCL had accordingly considered the impact of the same in the respective
year during the MTR Process.
MSEDCL
January 20
81
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
5.27.2 Hon’ble Commission had approved the past period adjustments of Rs.
(1,031.50) Crs in MTR Order dated 12th September 2018 as approved in the
MYT Order. MSEDCL has considered the same for FY 2018-19.
5.28 Revenue Gap Recovery Allowed for FY 2018-19
5.28.1 MSEDCL submits that in the MTR Order, Hon’ble Commission has allowed
revenue recovery as shown in the following table. MSEDCL has considered the
same.
Table 84: Revenue Recovery allowed in MTR for FY 2018-19
Particulars
ARR approved by the Hon'ble Commission
Approved Revenue at existing tariff
Approved Revenue Gap
Formula
A
B
C = A-B
Rs. Crs
FY 2018-19
66,556.98
65,638.75
918.23
Projected Revenue at appproved tariff
Additional Recovery from approved tariff
Previous Revenue Gap recovery allowed after
adjustment of current year Revenue Gap
D
E = D-B
68,813.54
3,174.79
F = E-C
2,256.56
5.29 Aggregate Revenue Requirement for FY 2018-19
5.29.1 Considering the parameters discussed above, the Aggregate Revenue
Requirement (ARR) of MSEDCL for Wires Business for the FY 2018 -19 is as
follows:
MSEDCL
January 20
82
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 85: ARR for Distribution Wires for FY 18-19
Rs. Crs
Particulars
Operation & Maintenance Expenses
Depreciation
Interest on Loan Capital
Interest on Normative Working Capital
Interest on deposit from Consumers and Distribution
System Users
Other Finance Charges
Provision for bad and doubtful debts
Contribution to contingency reserves
Income Tax
Return on Equity Capital
Aggregate Revenue Requirement
FY 2018-19
(Approved)
4,773.70
2,096.54
1,433.44
124.43
FY 2018-19
(Actual)
4,492.93
2,217.60
1,215.23
132.39
74.14
66.53
(7.61)
2.63
1,787.00
10,291.88
2.61
73.26
12.60
193.57
1,610.25
10,016.97
2.61
70.63
12.60
193.57
(176.75)
(274.91)
Deviation
(280.77)
121.06
(218.22)
7.96
5.29.2 Considering the parameters discussed above, the Aggregate Revenue
Requirement (ARR) of MSEDCL for Supply Business for the FY 2018 -19 is as
follows:
Table 86: ARR for Supply Business for FY 18-19
Particulars
Power Purchase Expenses
Operation & Maintenance Expenses
Depreciation Expenses
Interest on Loan Capital
Interest on Normative Working Capital
Interest on Consumers Security Deposit
Other Finance Charges
Provision for bad and doubtful debts
Other Expenses
Income Tax
Intra-State Transmission Charges MSLDC charge
Incentives/Discounts
Contribution to Contingency Reserves
Return on Equity Capital
RLC refund
Effect of sharing of gains/losses
Past Period Adjustment by Commission
Revenue Gap Recovery Allowed
Impact of payment to MPECS
Aggregate Revenue Requirement for Supply
Business
MSEDCL
January 20
Rs. Crs
FY 2018-19
FY 2018-19
Deviation
(Approved)
(Actual)
50,589.49
56,260.34
5,670.85
2,570.70
2,419.27
(151.43)
232.94
246.40
13.46
159.28
135.03
(24.25)
667.27
598.75
(68.52)
23.49
23.49
23.70
659.37
635.67
66.47
65.07
(1.40)
21.51
21.51
4,302.54
4,775.50
472.96
258.91
287.38
28.47
113.40
113.40
198.60
202.08
3.48
1.67
1.67
(152.29)
(152.29)
(1,031.50)
(1,031.50)
2,256.56
2,256.56
43.18
43.43
0.25
60,338.15
66,925.47
6,587.32
83
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
5.30 Revenue from sale of electricity for FY 2018-19
5.30.1 MSEDCL has considered the revenue for FY 2018-19 based on the Audited
Accounts as shown in following table.
Table 87: Revenue from Sale of Power for FY 18-19
Rs. Crs
Particulars
Revenue from Sale of Power
FY 2018-19
(Approved)
68,813.54
FY 2018-19
(Actual)
72,591.72
Deviation
3,778.18
5.30.2 The Annual Accounts of MSEDCL shows the revenue from operations which
includes various revenue items. However, being not part of revenue from sale
of power at retail tariff and as per practice in vogue, MSEDCL has shown certain
items of revenue separately.
5.30.3 MSEDCL humbly requests to the Hon’ble Commission to approve the categorywise revenue from sale of power as shown in above table.
5.31 Non-Tariff Income for FY 2018-19
5.31.1 MSEDCL has certain sources of non-tariff income viz. interest on arrears of
consumers, delayed payment charges, interest on staff loans and advances,
sale of scrap, interest on investment etc.
Table 88: Non-Tariff Income for FY 18-19
Rs. Crs
Particulars
Rents of land or buildings
Sale of Scrap
Income from investments
Income from sale of tender documents
Prompt payment discount from REC/PFC
Other/Miscellaneous receipts
Revenue from subsidy & grant
Non Tariff Income
FY 2018-19
(Approved)
1.21
53.42
16.43
6.56
15.45
958.12
1,051.19
FY 2018-19
(Actual)
0.98
80.21
17.61
8.49
11.58
405.62
84.85
609.35
Deviation
(0.23)
26.79
1.19
1.94
(3.88)
(552.50)
(441.84)
5.31.2 MSEDCL has a Non-Tariff Income of Rs. 609.35 Crs as against Rs. 1,051.19
Crs as approved by the Hon’ble Commission..
MSEDCL
January 20
84
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
5.31.3 As provided in the Regulation 36.3 of the MYT Regulations 2015, delayed
Payment Charge and Interest on Delayed Payment is not considered under
Non-Tariff Income.
5.31.4 MSEDCL has not considered income from grants and contribution reported
under non-tariff income, as the treatment (i.e. excluded while calculating
depreciation) to the same is already considered while computing the
depreciation for the FY 2018- 19.
5.32 Income from Open Access Charges for FY2018-19
5.32.1 MSEDCL has reported an income of Rs. 387.11 Cr. from Open Access Charges
as against Rs. 641.33 Crs as approved by the Hon’ble Commission.
Table 89: Income from Open Access Charges for FY 18-19
FY 2018-19
(Approved)
641.33
Particulars
Income from Open Access Charges
Rs. Crs
FY 2018-19
Deviation
(Actual)
387.11
(254.22)
5.32.2 Details of Income from Open Access Charges are summarised below:
Particulars
Energy Charges Open Access
F.C.A Charges Open Access
Penal Charges Open Access
Additional Charges Open Access
Adj to past billing Open Access
PF Penalty Open Access
Cross Subsidy Surcharge Open Access
Wheeling Charge Open Access
Transmission Charge Open Access
Operating Charges Open Access
Threshold penalty Open Access
Total Income from Open Access Charges
Amount
Rs. Crs
25.25
-0.56
0.03
0.41
-39.18
0.00
166.25
37.47
182.33
14.90
0.19
387.11
5.32.3 Hence, MSEDCL humbly requests the Hon’ble Commission to true up the
Income from Open Access Charges as per the Audited Accounts.
MSEDCL
January 20
85
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
5.33 Income from Trading of Surplus Power for FY 2018-19
5.33.1 MSEDCL has reported an Income from Trading of Surplus Power of Rs. 408.82
Crs. Details of surplus power traded is provided in following table.
Table 90: Income from Trading of Surplus Power for FY 18-19
Rs. Crs
Particulars
Income from Trading of Surplus Power
FY 2018-19
(Approved)
-
FY 2018-19
(Actual)
408.82
Deviation
408.82
5.33.2 MSEDCL humbly requests to the Hon’ble Commission to allow the income from
sale of surplus power as shown in above table.
5.34 Income from Wheeling Charges for FY 2018-19
5.34.1 MSEDCL has reported an income from Wheeling Charges of Rs. 1.79 Crs as
against Rs. 1.53 Crs as approved by the Hon’ble Commission for FY18-19.
Table 91: Income from Wheeling Charges for FY 18-19
Rs. Crs
Particulars
Income from Wheeling Charges
FY 2018-19
(Approved)
1.53
FY 2018-19
(Actual)
1.79
Deviation
0.26
5.34.2 Hence, MSEDCL humbly requests to the Hon’ble Commission to true up the
Income from Wheeling Charges as per the Audited Accounts as shown in the
above table.
5.35 Income from Additional Surcharge for FY 2018-19
5.35.1 MSEDCL has reported an income from Additional Surcharge of Rs. 108.44 Crs.
The Hon’ble Commission in the last MTR Order dated 12th September 2018,
had approved an income of Rs. 122.44 Cr. from additional surcharge for FY1819.
MSEDCL
January 20
86
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 92: Income from Additional Surcharge for FY 18-19
Rs. Crs
Particulars
Income from Additional Surcharge
FY 2018-19 FY 2018-19
Deviation
(Approved)
(Actual)
122.44
108.44
(14.00)
5.35.2 MSEDCL humbly requests to the Hon’ble Commission to true up the Income
from Additional Surcharge as per the Audited Accounts as shown in the above
table.
5.36 Revenue Gap/(Surplus) for FY 2018-19
5.36.1 Based on the above analysis, the summary of ARR (after sharing of efficiency
gains &losses) for the Wires Business and Supply Business, as per Audited
Account and as approved by the Hon’ble Commission, for FY 2018-19 is
presented in the Table below.
MSEDCL
January 20
87
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 93: ARR for Wires & Supply Business for the FY 2018-19
Rs. Crs
Particulars
Power Purchase Expenses
Operation & Maintenance Expenses
Depreciation Expenses
Interest on Loan Capital
Interest on Normative Working Capital
Interest on Consumers Security Deposit
Other Finance Charges
Provision for bad and doubtful debts
Other Expenses
Income Tax
Intra-State Transmission Charges MSLDC charge
Incentives/Discounts
Contribution to Contingency Reserves
Return on Equity Capital
RLC refund
Revenue Gap Allowed
Effect of sharing of gains/losses
Past Period Adjustment by Commission
Impact of payment to MPECS in future years
Aggregate Revenue Requirement
Revenue from Sale of Power
Non-Tariff Income
Income from Open Access Charges
Income from Trading of Surplus Power
Income from Wheeling Charges
Income from Additional Surcharge
Total Revenue
Revenue Gap/(Surplus)
FY 2018-19
(Approved)
50,589.49
7,344.40
2,329.48
1,592.72
124.43
741.41
26.33
66.47
4,302.54
258.91
1,985.60
2,256.56
(1,031.50)
43.18
70,630.03
68,813.54
1,051.19
641.33
1.53
122.44
70,630.02
FY 2018-19
(Actual)
56,260.34
6,912.20
2,464.00
1,350.25
132.39
665.28
26.11
732.63
65.07
215.08
4,775.50
287.38
126.00
1,812.34
1.67
2,256.56
(152.29)
(1,031.50)
43.43
76,942.44
72,591.72
609.35
387.11
408.82
1.79
108.44
74,107.23
2,835.21
Deviation
5,670.85
(432.20)
134.52
(242.47)
7.96
(76.13)
26.11
706.30
(1.40)
215.08
472.96
28.47
126.00
(173.26)
1.67
(152.29)
0.25
6,312.41
3,778.18
(441.84)
(254.22)
408.82
0.26
(14.00)
3,477.21
2,835.20
5.36.2 The Hon’ble Commission in its MTR Order dated 12th September 2018 had
approved Aggregate Revenue Requirement of Rs. 70,630.03 Crs for FY 201819 against which MSEDCL has computed Rs. 76,942.44 Crs. MSEDCL, in this
petition submits the actual revenue (incl. other components of revenue) of Rs.
74,107.23 Crs with a deviation of Rs. 3,477.21 Crs. Considering the impact of
revenue and other income, the truing up requirement works out to be Rs.
2,835.20 Cr. The same has been summarised in above table. MSEDCL
requests the Hon’ble Commission to allow the true up requirement as
submitted.
MSEDCL
January 20
88
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
6
6.1
PROVISIONAL TRUE UP OF FY 2019-20
Preamble
6.1.1 This section outlines the performance of MSEDCL for FY 2019-20 in line with
the provisions of the MYT Regulations 2015. MSEDCL hereby submits detailed
Provisional Truing-up for FY 2019-20 comparing the estimated expenditures for
FY 2019-20 based on the latest available information vis-à-vis the forecast
approved by the Hon’ble Commission vide MTR Order dated 12th September
2018.
6.2
Principles of Truing-up for FY 2019-20
6.2.1 MSEDCL submits that the MERC (Multi Year Tariff) Regulations, 2019 specifies
that Multi Year Tariff Petition shall comprise of Provisional Truing up for FY
2019-20 which has to be carried out based on the provisions of the MERC (Multi
Year Tariff) Regulations, 2015.
6.2.2 In line with the provisions of MERC (Multi Year Tariff) Regulations, 2015,
MSEDCL has computed this Provisional Truing- up for FY 2019-20.
6.2.3 Accordingly, based on the latest available information, the estimated Aggregate
Revenue Requirement, revenue and gap for FY 2019-20 are discussed in detail
in the following paragraphs.
6.3
Category Wise Sales for FY 2019-20
6.3.1 MSEDCL submits that it has considered the actual sales till September 2019
and estimated the sales for remaining six months of FY 2019-20 considering
historical trend. Details of month wise sales are given in Form 1 of the
Regulatory Formats.
6.3.2 MSEDCL submits the provisional sales for the FY 2019-20 excluding the sales
in the areas of the Distribution Franchisee.
MSEDCL
January 20
89
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 94: Category wise Sales for FY 2019-20
Category
Residential
Commercial
HT-Industrial
LT-Industrial
PWW
Street Light
Agriculture
Public Services
Railways
Others
MSEDCL Excl. DF
FY 2019-20
(Approved)
20,336.63
7,963.08
29,207.84
7,232.08
2,427.77
2,013.76
31,943.14
1,515.68
59.25
740.91
1,03,440.14
Sales (MUs)
FY 2019-20
(Estimatedl)
20,747.29
7,745.71
30,903.47
7,004.10
2,348.25
1,817.36
30,491.51
1,472.76
64.23
698.57
1,03,293.22
Deviation
410.66
(217.37)
1,695.63
(227.98)
(79.52)
(196.40)
(1,451.63)
(42.92)
4.98
(42.34)
-146.92
6.3.3 MSEDCL submits that in this petition, LT Agriculture sales for FY 2019-20 have
been estimated based on the half yearly sales plus the sales for remaining six
months keeping in view the water availability for irrigation in the State. The
actual sales to LT Agriculture consumers will depend upon Rabi crop cultivation
and the same shall be updated to the Hon’ble Commission during the months
of February/ March 2020.
6.4
Distribution Losses for FY 2019-20
6.4.1 In MYT Order dated November 2016, Hon’ble Commission had approved
distribution loss of 13.26% (Excl. EHV). MSEDCL has considered the same
targeted loss levels for estimation as shown in following table.
Table 95: Distribution Losses FY2019-20
Particulars
Distribution Loss
FY 2019-20
FY 2019-20
(Approved) (Estimated)
13.26%
13.26%
Deviation
-
6.4.2 MSEDCL requests the Hon’ble Commission to approve the Distribution Losses
for FY 19-20.
6.5
Energy Balance for FY 2019-20
6.5.1 The quantum of sales in MUs shown in the above para represents the sales of
MSEDCL excluding the sales in the area served by Distribution Franchisees in
MSEDCL
January 20
90
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
the year FY 2019-20. Further, while calculating energy balance of MSEDCL as
a whole, the sale to the consumers of the Distribution Franchisee area has also
been considered. Since the Distribution Franchisee is an agent to MSEDCL as
per the Franchisee Agreement, MSEDCL has to consider the loss within the
Franchisee area for Energy balance. Therefore, estimated energy balance for
FY 2019-20 is computed as below:
Table 96: Energy Sales for FY 2019-20
MUs
FY 2019-20
(Approved)
Particulars
Energy Sales by MSEDCL for FY 2019-20 incl.
Offset Solar Units
Add: Category wise sales in DF area
Add: OA Sales (Conventional)
Add: Renewable OA
Total Energy Sales
FY 2019-20
(Estimated)
Deviation
1,03,440.14
1,03,367.11
(73.03)
4,929.10
4,773.83
748.60
1,13,891.66
4,709.97
3,983.40
859.40
1,12,919.88
(219.13)
(790.43)
110.80
(971.78)
6.5.2 Considering the principles discussed in energy balance for FY 17-18 and FY
18-19, MSEDCL has computed the energy balance for FY 19-20 as
summarised in following table.
MSEDCL
January 20
91
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 97: Energy Requirement and Energy Balance FY 2019-20
Sr. No.
1
3
4
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
Particulars
LT Sales (Including D.F)
HT Sales excluding EHV level sales (Including D.F)
HT/LTIP Credit Sales and HT/LT Offset Export Solar units
Total Sales including D.F (Excluding EHV Sales)
OA Sales (Renewables)
OA Sales (Conventional)
Retail Energy Sale to Consumers (Excluding EHV Sales)
Total Power Purchase
Power Purchase Quantum from Intra-State sources
Power Purchase Quantum from Inter-State sources
Inter-State Losses
Power Purchase Quantum from Inter-State sources at MS Periphery
Add: FBSM
Power Quantum handled at Maharashtra Periphery
Infirm Non-PPA Wind Power
Input for OA Consumption
Total Power Purchase Quantum Handled
Surplus Power Traded
Energy Requirement at G<>T Periphery
Intra-State Transmission Loss
Intra-State Transmission Loss
Net Energy requirement at T<>D Periphery
EHV Sales
Net Energy Available for Sale at 33kV
Energy injected and drawn at 33kV
Total Energy Available for Sale at 33kV (Metered Energy at EHV
and 33 kV Input)
Distribution Loss (Excl. EHV Sales)
Distribution Loss (Excl. EHV Sales)
Calculation
UoM
a
b
c
d=a+b+c
e
f
A=d+e+f
B=g+h
g
h
i
j=h*(1-i)
k
l=g+j+k
m
n=f/(1-6%)
o=l+m+n-w
p
q=o-p
r
s=q*r
t=q-s
u
v=t-u
w
MU
MU
MU
MU
MU
MU
MU
MU
MU
MU
%
MU
C=v+w
D=C-A
E=D/C
FY 2019-20
MTR Order
Estimated
MU
MU
MU
MU
MU
MU
%
MU
MU
MU
MU
MU
72,166
27,654
99,820
749
4,774
1,05,342
1,30,634
89,295
41,339
3.14%
40,041
1,29,336
5,079
1,33,926
1,33,926
3.30%
4,420
1,29,507
8,549
1,20,957
488
69,983
28,195
74
98,252
859
3,983
1,03,095
1,28,767
88,780
39,986
3.07%
38,759
1,27,539
914.25
4,238
1,32,118
767
1,31,351
2.47%
3,245
1,28,106
9,825
1,18,281
573
MU
1,21,445
1,18,854
MU
%
16,103
13.26%
15,759
13.26%
6.5.3 MSEDCL requests the Hon’ble Commission to approve the Energy Balance as
per the above table.
6.6
Power Purchase Expenses for FY 2019-20
6.6.1 MSEDCL submits that it has considered the power purchase till September
2019 (provisional) and projected power purchase for remaining 6 months of FY
2019-20 considering sales projection with estimated Distribution Losses.
MSEDCL
January 20
92
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 98: Source wise estimated Power Purchase for FY 2019-20
Source
MSPGCL
NTPC
NPCIL
SSP
Pench
Dodson
JSW
CGPL
Adani Power
EMCO Power
Rattan India
Renewable
Traders
Other Adjsutments
PGCIL Charges
Intra State Purchase
Total Power Purchase
PP Quantum (MUs)
PP Cost (Rs. Cost)
PP Cost (Rs. /Unit)
Approved
Approved in
Approved in
in MTR
Estimated
Deviation
Estimated
Deviation
Estimated Deviation
MTR Order
MTR Order
Order
47,826.72
47,840.33
13.61
18,769.37
20,238.13
1,468.77
3.92
4.23
0.31
27,634.48
26,638.65
(995.83)
9,182.60
10,452.18
1,269.57
3.32
3.92
0.60
5,485.23
5,612.76
127.54
1,474.47
1,615.18
140.71
2.69
2.88
0.19
1,213.26
1,043.46
(169.80)
248.72
213.91
(34.81)
2.05
2.05
(0.00)
136.87
91.58
(45.29)
28.06
18.77
(9.28)
2.05
2.05
(0.00)
116.04
34.68
(81.36)
16.33
14.67
(1.66)
1.41
4.23
2.82
2,060.73
2,120.32
59.59
660.58
725.07
64.50
3.21
3.42
0.21
5,495.27
4,696.92
(798.35)
1,375.53
1,350.07
(25.46)
2.50
2.87
0.37
19,655.43
19,710.82
55.38
6,783.31
7,496.65
713.33
3.45
3.80
0.35
1,373.82
1,331.67
(42.15)
494.19
569.08
74.89
3.60
4.27
0.68
3,356.11
3,356.11
982.87
2,122.00
1,139.13
6.32
6.32
19,635.91
15,718.00
(3,917.91)
9,794.24
7,761.79
(2,032.46)
4.99
4.94
(0.05)
571.42
571.42
224.84
224.84
3.93
3.93
0.01
0.01
2,928.00
3,501.12
573.12
1.98
1.98
1,30,634
1,28,766.72
(1,867)
52,738
56,305
3,567
4.04
4.37
0.34
6.6.2 MSEDCL requests the Hon’ble Commission to approve the power purchase as
submitted in the above table.
6.7
Transmission Charges for FY 2019-20
6.7.1 The Intra State transmission charges are taken actual upto September 2019
and estimated for remaining 6 months of FY 2019-20 as per the InSTS Order
dated 12th September 2018 in Case No. 265 of 2018.
6.7.2 Based on the above submission, the comparison of the approved and the
estimated transmission charges for FY 2019-20 is as shown below:
Table 99: Transmission Charges paid to Transmission Licensee for FY 2019-20
Rs. Crs
Particulars
Intra-State Transmission Charges
FY 2019-20
(Approved)
4,863.74
FY 2019-20
(Estimated)
4,867.55
Deviation
3.81
6.7.3 MSEDCL requests the Hon’ble Commission to approve the intra state
transmission charges as submitted in the above table.
6.8
Fixed Costs for FY 2019-20
6.8.1 Based on the Capital Cost and the consequent Capitalized Expenditure, Equity
Component and Normative Debt, the fixed cost of MSEDCL for FY 2019-20
MSEDCL
January 20
93
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
(excluding fixed components of PP cost) has been determined in accordance
with the provisions of MYT Regulations 2015. As outlined under the regulations,
the fixed cost for MSEDCL has been determined under the following major
heads long with other items of expenditure:
 Operation and Maintenance Expenses


Depreciation
Interest and Finance Charges


Interest on Working Capital
Income Tax

Return on Equity
6.8.2 Net Annual Revenue Requirement has been computed after netting off
Expenses capitalized.
6.8.3 Head wise comparison has been made between the values approved by the
Hon’ble Commission vide MTR Order dated 12th September 2018 in Case no.
195 of 2017 and the estimated for FY 2019-20.
6.9
Normative Operation & Maintenance Expenses for FY 2019-20
6.9.1 MSEDCL submits that Regulation 72 and Regulation 81 of the MERC (MYT)
(1st Amendment) Regulations 2017 provides for the O&M Expenses Norm for
Distribution Wires Business and Retail Supply of electricity respectively.
6.9.2 Considering the escalation factor same as that computed for FY 2018-19 at
Table 60 and base year O&M Expenses for FY 2015-16 (net entitlement after
sharing of gains/(losses), MSEDCL has computed the O&M Expenses for Wires
Business and Retail Supply of electricity for FY 2019-20 as shown in following
table.
Table 100: O&M Expenses for FY 2019-20
Particulars
O&M Expenditure for Wires business
O&M Expenditure for Retail Supply business
Operation and Maintenance Expenses
MSEDCL
Rs. Crs
FY 2019-20
FY 2019-20
Deviation
(Approved) (Normative)
5,015.05
4,620.17
(394.88)
2,700.41
2,487.79
(212.63)
7,715.46
7,107.96
(607.50)
January 20
94
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
6.9.3 MSEDCL requests the Hon’ble Commission to allow the O&M Expenses as
computed in above table.
6.10 Capitalisation for FY 2019-20
6.10.1 MSEDCL has estimated capitalization of Rs. 6,469.03 Cr. for FY 2019-20
based on the available information as on September 2019. Following table
shows the estimated capitalization in FY 2019-20 is shown in the table below.
Table 101: Capitalisation for FY 2019-20
Rs. Crs
Particulars
Total Capitalisation
FY 2019-20
(Approved)
2,546.90
FY 2019-20
(Estimated)
6,469.03
Deviation
3,922.13
6.10.2 MSEDCL submits that the Hon’ble Commission had approved the capitalization
based on the projections provided in the MTR Petition. Subsequently, various
new schemes started, also additional information for few schemes is now
available.
6.10.3 The major reasons for deviations are as follows:




In case of DDUGJY, the projections in previous petition for FY 2017-18
& 2018-19 were Rs. 272.07 Cr & 761.60 Cr. But actual capitalization for
these 2 yrs is total Rs. 450.44 Cr. The expenditure incurred in previous
years is expected to be capitalized in FY 2019-20 and hence the
projections for FY 2019-20 are revised to Rs. 824 Crore as compared to
previous projection of Rs. 636.68 Cr.
IPDS Scheme:- Here also the gap in projection and actual capitalization
for FY 2017-18 and 2018-19 is Rs. 682.15 Cr. and hence, the projections
are increased to Rs. 962 Crore. (Previous is Rs. 722.05 Cr.)
Due to timely completion of projects in FY 2017-18 & 2018-19, DPDC
funding and expenditure is expected to increase by another Rs. 200 Cr.
Hence the projections are revised at Rs. 665.18 Cr (previous projection
is Rs. 457.98 Cr.)
Some new schemes were introduced during 2018-19 and some are
introduced during 2019-20. The projections for these schemes were not
MSEDCL
January 20
95
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
considered in previous MTR petition. But the same is considered in
current Petition based on actual progress and deadlines for work
completion.
New schemes introduced in FY 2017-18 & 2018-19 are
i.
Shet Tale
ii.
Saubhagya
iii.
HVDS
iv.
MSVVY
New Schemes introduced in FY 2019-20 are
i.
High Loss Feeder
ii.
System Strengthening Work
iii.
NCRMP
•
•
6.10.4 The scheme wise difference is as follows:
Previous
Projections in MTR
Current
Projections in MYT
Difference
(Rs. Crs)
DDUGJY
636.68
824.00
187.32
IPDS
722.05
962.00
239.95
DPDC
457.98
665.18
207.20
Shet Tale
0.00
156.06
156.06
Saubhagya
0.00
430.65
430.65
HVDS
0.00
1,159.78
1159.78
MSVVY
0.00
25.50
25.50
0.00
75.00
75.00
System
strengthening
0.00
125.00
125.00
NCRMP
0.00
45.00
45.00
Name of
Scheme
High
Feeder
Loss
Total Diff
2651.46
Based on the available information, the capitalisation for FY 2019-20 is. Rs.1,615
Crore.
6.10.5 Scheme wise details of the capitalization are provided in the Regulatory
MSEDCL
January 20
96
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Formats. However, for other assets such as land and land rights, buildings etc.,
MSEDCL has estimated capitalisation of Rs. 100.00 Crs. MSEDCL requests
the Hon’ble Commission to approve the capitalisation as estimated above.
Table 102: Capitalisation for FY 2019-20
Sr. No.
1
2
3
Amount
(Rs. Crs)
6,469.03
100.00
6,569.03
Particulars
Capitalisation as per Form 8/Form 4
Estimated Other Assets
Total
6.10.6 Hon’ble Commission in its previous Orders has allowed the capitalization
towards schemes not forming part of any specific scheme. MSEDCL further
submits that Hon’ble Commission has accordingly revised the GFA to that
extent as well. Therefore, MSEDCL requests the Hon’ble Commission to
approve the capitalization as submitted above and compute the GFA
accordingly.
6.11 Depreciation for FY 2019-20
6.11.1 Considering the Opening GFA for FY 2019-20 without grants and consumer
contribution, MSEDCL has estimated the depreciation for FY 2019-20 at
weighted average rate for FY 18-19 as summarised in following table.
Table 103: Depreciation for FY 2019-20
Particulars
Approved
(Rs. Crs)
Net Opening GFA (Regulatory*)
Depreciation
2,411.41
* Excluding consumer contribution and grants
Estimated
(Rs. Crs)
52,393.41
2,594.37
6.11.2 MSEDCL requests the Hon’ble Commission to allow the Depreciation as
computed in above table.
6.12 Funding Pattern for FY 2019-20
6.12.1 As per the Regulation 26.1 of MERC (MYT), 2015, the debt-equity ratio as on
the date of commercial operation shall be 70:30 of the amount of capital cost
approved by the Commission. The said Regulation also provides that if the
equity actually deployed is more than 30% of the capital cost, equity in excess
MSEDCL
January 20
97
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
of 30% shall be treated as normative loan for the Generating Company or
Licensee or MSLDC for determination of Tariff.
6.12.2 The funding pattern for FY 2019-20 for the capitalization estimated by
MSEDCL, in proportion to the funding pattern of capital expenditure, is
presented in the following table:
Table 104: Funding Pattern of Capitalisation for FY 2019-20
Particular
Total Capitalisation
Less: Consumer Contribution
Less: Grants
Balance to be funded
Equity
Debt
Amount
Funding
(Rs. Crs)
Mix (%)
6,469.03
100.77
3,186.35
3,181.92
328.16
10.31%
2,853.76
89.69%
6.12.3 MSEDCL requests the Hon’ble Commission to allow the funding pattern as
submitted above.
6.13 Interest Expenses for FY 2019-20
6.13.1 MSEDCL has computed the interest expenses on normative basis linked to the
normative opening loan and normative loan addition during the year. Further,
MSEDCL has considered the weighted average interest rate of actual loan
portfolio of FY 2018-19 as shown in Table 66.
6.13.2 Regulation 29.3 of the MERC (MYT) Regulations 2015 provides for repayment
equal to depreciation. The relevant extract is reproduced below:
29.3 The repayment during each year of the Control Period from FY 2016-17
to FY 2019-20 shall be deemed to be equal to the depreciation allowed for that
year.
6.13.3 Considering the normative opening loan, normative loan addition during the
year and loan repayment equal to depreciation and the weighted average
interest rate of actual loan portfolio for FY 2018-19, MSEDCL has computed
the interest expenses on normative basis as summarized in table below:
MSEDCL
January 20
98
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 105: Interest Expenses for FY 2019-20
Rs. Crs
Particulars
Normative Outstanding Loan at beginning of the year
Less: Reduction of Normative Loan due to retirement of assets
Loan Drawal
Loan Repayment
Normative Balance Outstanding at the end of the year
Average Balance of Net Normative Loan
Interest Rate
Interest Expenses
FY 2019-20
(Approved)
13,685.75
920.09
2,411.30
12,194.54
12,940.14
11.37%
1,471.02
FY 2019-20
(Estimated)
13,004.36
2,853.76
2,594.37
13,263.75
13,134.05
10.28%
1,349.54
Deviation
(681.39)
1,933.66
183.06
1,069.21
193.91
(121.48)
6.13.4 MSEDCL requests the Hon’ble Commission to approve the interest expenses
as submitted in above table.
6.14 Interest on Working capital for FY 2019-20
6.14.1 MSEDCL submits that the Regulations 31.3 of the MERC (MYT) Regulations
2015 provides for Interest on Working Capital for Wire business of electricity.
Further the said Regulation also provides that the Normative Rate of interest
on working capital shall be base rate as on date of filing of Petition plus 150
basis points.
6.14.2 Accordingly, MSEDCL has calculated Interest on Working Capital for FY 201920 @ 9.50% (8% + 1.50%) for wire business.
6.14.3 MSEDCL further submits that the amendment to the Regulation 29.11 of MYT
Regulations 2015 provides for Interest on Security Deposit at MCLR as on 01st
April 2019 plus 150 basis points. MSEDCL further submits that it has estimated
the security deposit considering a nominal growth of 5% over previous year.
Accordingly, MSEDCL has calculated Interest on consumer security deposit for
FY 2019-20 @ 10.05% (8.55% + 1.5%) for wire business as shown in following
Table.
MSEDCL
January 20
99
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 106: Interest on Working Capital for Wire business for FY 2019-20
Rs. Crs
FY 2019-20
(Approved)
Particulars
Computation of Working Capital (Wire Business)
O&M expenses for a month
Maintenance Spares at 1% of Opening GFA
1.5 months of expected revenue from charges for use of
Distribution wires
Less: Amount held as SD from Distribution System Users
Total Working Capital Requirement
Rate of Interest (% p.a.)
Interest on Working Capital
Interest on Security Deposit
Rate of Interest (% p.a.)
Interest on Security Deposit
FY 2019-20
(Estimated)
Deviation
417.92
522.16
385.01
471.71
1,246.52
1,281.50
34.98
(845.12)
1,341.49
9.45%
126.77
(792.07)
1,346.16
9.50%
127.89
53.05
4.68
9.65%
81.55
10.05%
79.60
(32.91)
(50.45)
1.11
(1.95)
6.14.4 MSEDCL requests the Hon’ble Commission to allow the interest on working
capital and security deposit for wire business as shown in above table.
6.14.5 MSEDCL further submits that Regulation 31.4 of the MERC (MYT Regulations
2015) provides for Interest on Working Capital for Retail Supply business of
electricity. Further the said Regulation also provides that the Normative Rate of
interest on working capital shall be base rate as on date of filing of Petition plus
150 basis points.
6.14.6 Accordingly, MSEDCL has calculated Interest on Working Capital for FY 201920 @ 9.50% (8%+1.50%) for supply business.
6.14.7 MSEDCL further submits that the amendment to the Regulation 29.11 of MYT
Regulations 2015 provides for Interest on Security Deposit at MCLR as on 01st
April 2019 plus 150 basis points. MSEDCL further submits that it has estimated
the security deposit considering a nominal growth of 5% over previous year.
Accordingly, MSEDCL has calculated Interest on Consumer Security Deposit
for FY 2019-20 @ 10.05% (8.55% + 1.5%) for supply business as shown in
following table:
MSEDCL
January 20
100
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 107: Interest on Working capital for Supply business for FY 2019-20
Rs. Crs
Particulars
Computation of Working Capital (Supply Business)
O&M expenses for a month
Maintenance Spares at 1% of Opening GFA
1.5 months equivalent of the expected revenue from sale of
electricity at the prevailing Tariff and including revenue from
CSS and Additional Surcharge
Less: Amount held as security deposit
Less: One month equivalent of cost of Power Purchase,
Transmission Charges and MSLDC Charges
Total Working Capital Requirement
Rate of Interest (% p.a.)
Interest on Working Capital
Estimated Working Capital Interest
Interest on Security Deposit
Rate of Interest (% p.a.)
Interest on Security Deposit
FY 2019-20
(Approved)
FY 2019-20
(Estimated)
225.03
58.02
207.32
99.68
8,651.54
9,695.24
(7,606.07)
(7,128.59)
477.48
(4,800.17)
(5,097.75)
(297.58)
(3,471.65)
9.45%
-
(2,224.11)
9.50%
-
9.65%
733.99
10.05%
716.42
Deviation
(17.72)
41.66
1,043.70
1,247.54
(17.56)
6.14.8 MSEDCL requests the Hon’ble Commission to allow the interest on working
capital and security deposit for supply business as shown in above table.
6.15 Other Finance Charges
6.15.1 MSEDCL submits that based on available information for FY 19-20, it has
estimated the Other Finance Charges for the year as summarised below:
Table 108: Other Finance Charges
Particulars
Guarantee Charges
Finance Charges
Stamp Duty
Service Fee (Fund-raising charges)
Total
Rs. Crs
FY 2019-20
(Estimated)
23.04
1.12
6.94
31.10
6.15.2 MSEDCL requests the Hon’ble Commission to allow the other finance charges
as shown in above table.
MSEDCL
January 20
101
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
6.16 Provision for Bad Debts for FY 2019-20
6.16.1 MSEDCL submits that bad debts are inseparable incidents of the business of
electricity distribution and retail supply.
6.16.2 Regulation 73 and 82 of the MYT Regulations, 2015 specifies that a provision
of bad and doubtful debt may be allowed up to 1.5% of the amount shown as
trade receivables or receivables in the Audited Accounts of the distribution
licensee duly allocated for wires and supply business respectively.
6.16.3 MSEDCL has computed the provision for bad and doubtful debts for FY 201920 as per the provisions of the MYT Regulations 2015 considering the
estimated receivables for FY 2019-20. The receivables are taken as per actuals
till September 2019 and are further projected till March 2020 in order to arrive
at the receivables for FY 2019-20. For the interest part a y-o-y rise of 2% and
10% is taken for Non-AG and AG respectively. For the principle part a y-o-y rise
of 2% and 5% is taken for Non-AG and AG respectively. MSEDCL further
submits that the provision estimated for FY 2019-20 shall be written off after the
approval of Hon’ble Commission. The computation of provision for bad debt for
FY 19-20 is shown in following table.
Table 109: Computation of Provision for Bad Debt for FY 19-20
Rs. Crs
FY 2019-20
(Approved)
Particulars
Opening Balance of Provision for bad and
doubtful debts
Receivables for the year
Provision for bad & doubtful debts during the
year
Provision for bad & doubtful debts during
the year
Estimated bad and doubtful debts written off
Closing Balance of Provision for bad and
doubtful debts
Closing Balance as a % of receivables
1,638.42
FY 2019-20
(Estimated)
56,362.04
Deviation
-1,638.42
56,362.04
1.50%
-
1,638.42
845.43
845.43
845.43
845.43
-
-1,638.42
0.00%
6.16.4 Considering the allocation matrix provided by Hon’ble Commission in the MYT
Regulations 2015, MSEDCL has worked out the provision for Bad Debt for wire
MSEDCL
January 20
102
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
and retail supply businesses respectively as shown below:
Table 110: Provision for Bad debts for FY 2019-20
Rs. Crs
Particulars
Bad Debt Provision for Wires business
Bad Debt Provision for Retail Supply business
Bad Debt Provision
FY 2019-20
(Approved)
-
FY 2019-20
(Estimated)
84.54
760.89
845.43
Deviation
84.54
760.89
845.43
6.16.5 MSEDCL requests the Hon’ble Commission to allow provision for Bad Debt as
shown in above table.
6.17 Other Expenses for FY 2019-20
6.17.1 The other expenses of MSEDCL comprise of the expenditure on account of
Non-Moving items written off, interest to suppliers/contractors, Incentive to
distribution franchisee and other expenses viz. compensation for injuries to staff
and outsiders. MSEDCL has estimated the other expenses for FY 2019-20
considering provisional figures for the first six months and projections for the
remaining six months for FY 2019-20 as shown in the table below.
Table 111: Other Expenses for FY 2019-20
Rs. Crs
Particulars
Compensation for injuries,death to staff
Compensation for injuries,death to others
Loss on obsolescence of fixed Assets
Sundry debit balances written off
Non Moving Items
Others
Other Expenses for previous years
Expected Credit loss on other receivables
TOTAL
FY 2019-20 FY 2019-20
(Approved) (Estimated)
1.36
1.26
16.33
15.22
1.64
1.81
3.81
16.89
2.63
7.74
5.52
45.66
69.79
50.08
Deviation
(0.10)
(1.11)
1.64
1.81
13.08
5.11
5.52
(45.66)
(19.71)
6.17.2 MSEDCL requests the Hon’ble Commission to allow the other expenses as
shown in above table.
6.18 Provision for Contribution to Contingency Reserves for FY 2019-20
6.18.1 Regulation 34 of MYT Regulations 2015, provides for the Provision for
MSEDCL
January 20
103
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Contingency Reserves. Accordingly, MSEDCL has estimated the same @
0.25% of the estimated Opening GFA (including grants and consumer
contribution) for FY 2019-20 as shown in the following table:
Table 112: Contingency Reserve for FY 2019-20
Rs. Cr.
Particulars
Contribution to Contingency Reserves
FY 2019-20
(Approved)
-
FY 2019-20
(Estimated)
142.85
Deviation
142.85
6.18.2 MSEDCL submits that as per the Regulation 34 of the MYT Regulations 2015,
MSEDCL has made the investment for FY 18-19. Considering this, MSEDCL
has claimed the contribution to contingency reserve for FY 19-20. Once the
approval is available, MSEDCL shall make the necessary investments as per
the provisions of the MYT Regulations 2015.
6.18.3 MSEDCL requests the Hon’ble Commission to allow the contingency reserves
as shown in above table.
6.19 Incentives and Discounts for FY 2019-20
6.19.1 MSEDCL has estimated the incentives and Discount for FY 2019-20 based on
the information available for the first six months and for the remaining six
months considered it to be equal to first six months.
Table 113: Incentives/Discount for FY 2019-20
Rs. Crs
Particulars
Incentives and Discount
FY 2019-20
(Approved)
271.86
FY 2019-20
(Estimated)
307.03
Deviation
35.17
6.19.2 MSEDCL requests the Hon’ble Commission to allow the incentives/discounts
as shown in above table.
6.20 RLC Refund for FY 2019-20
6.20.1 MSEDCL has made RLC Refund of Rs. 1.84 Cr. in FY 2019-20 as per actual
information available for first six months as shown in the below table. MSEDCL
requests the Hon’ble Commission to approve the same.
MSEDCL
January 20
104
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 114: Refund of RLC for FY 2019-20
Rs. Crs
Particulars
RLC Refund
FY 2019-20
(Approved)
-
FY 2019-20
(Estimated)
1.84
Deviation
1.84
6.21 Return on Equity for FY 2019-20
6.21.1 Regulation 28.2 of MERC (MYT) Regulations 2015, provides for Return on
Equity (RoE) for Distribution Licensee for both Wire and Supply Business.
6.21.2 The return on equity capital is allocated in the ratio of Fixed Assets between the
Wires and Retail Supply Business, i.e. 90% to Wires Business and 10% to
Supply Business. Therefore, the capital expenditure, grants, equity and
capitalisation are divided into wires and supply business in the ratio of 90:10.
6.21.3 Considering the provisions of the MYT Regulations 2015, MSEDCL has
computed the return on equity as shown in following tables.
Table 115: RoE for wires business for FY 2019-20
Rs. Crs
FY 2019-20
(Approved)
Particulars
Return on Equity (Wires Business)
Regulatory Equity at the beginning of the year
Equity portion of Assets Capitalisation
Equity portion of Assets Decapitalised
Regulatory Equity at the end of the year
Return on Computation
Return on Regulatory Equity at the beginning of the year
- 15.5%*(1)
Return on Normative Equity portion of Assett
Capitalization - 15.5%*(2)/2
Interest on Equity portion above 30% equity
Total Return on Regulatory Equity
MSEDCL
January 20
FY 2019-20
(Estimated)
11,699.43
912.40
12,611.83
10,553.23
295.34
10,848.57
1,813.41
1,635.75
70.71
22.89
21.86
1,905.98
1,658.64
Deviation
(1,146.20)
(617.06)
(1,763.25)
(177.66)
(47.82)
(21.86)
(247.34)
105
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 116: RoE for retail supply business for FY 2019-20
Rs. Crs
Particulars
Regulatory Equity at the beginning of the year
Equity portion of Assets Capitalisation
Equity portion of Assets Decapitalised
Regulatory Equity at the end of the year
Return on Computation
Return on Regulatory Equity at the beginning of the
year - 17.5%*(1)
Return on Normative Equity portion of Assett
Capitalization - 17.5%*(2)/2
Interest on Equity portion above 30% @11.37%p.a.
Total Return on Regulatory Equity
FY 2019-20
(Approved)
1,299
101
1,401
FY 2019-20
(Estimated)
1,173
33
1,206
227.39
205.28
(22.11)
8.87
2.87
(6.00)
3.33
239.60
208.15
(3.33)
(31.44)
Deviation
(126.35)
(68.56)
(194.91)
6.21.4 MSEDCL requests the Hon’ble Commission to allow the RoE as computed
above.
6.22 Impact of payment to MPECS for FY 2019-20
6.22.1 Hon’ble Commission in the MYT Order dated 3rd November 2016 has approved
following amounts towards payment to MPECS.
Financial Year
FY 17-18
FY 18-19
FY 19-20
Amount in Rs. Cr.
46.20
43.18
40.17
6.22.2 Hon’ble Commission in the MTR Order has approved the amount towards
payment to MPECS as the same was allowed under the MYT Order.
6.22.3 Accordingly, MSEDCL has claimed Rs. 40.17 Crs towards the payments to
MPECS for FY 2019-20. MSEDCL requests the Hon’ble Commission to allow
the same.
6.23 Past Period Adjustment by Commission for FY 2019-20
6.23.1 In the MTR Petition, MSEDCL had submitted that in the MYT Order dated 3rd
MSEDCL
January 20
106
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
November 2016, the Hon’ble Commission had considered the Net Impact of
Past Period while approving the revenue for MSEDCL from revised tariffs for
the third Control Period.
6.23.2 Hon’ble Commission had approved the past period adjustments of Rs. 853 Cr.
in MTR Order dated 12th September 2018. MSEDCL has considered the same
for FY 2019-20.
6.24 Revenue Gap Recovery Allowed for FY 2019-20
6.24.1 MSEDCL submits that in the MTR Order, Hon’ble Commission has allowed
revenue recovery as shown in the following table. MSEDCL has considered the
same.
Table 117: Revenue Gap Recovery Allowed for FY 2019-20
Particulars
ARR approved by the Hon'ble Commission
Approved Revenue at existing tariff
Approved Revenue Gap
Formula
A
B
C = A-B
Rs. Crs
FY 2019-20
71,616.52
69,086.17
2,530.35
Projected Revenue at appproved tariff
Additional Recovery from approved tariff
Previous Revenue Gap recovery allowed after
adjustment of current year Revenue Gap
D
E = D-B
74,179.45
5,093.28
F = E-C
2,562.93
6.25 Aggregate Revenue Requirement for FY 2019-20
6.25.1 Considering the parameters discussed above, the Aggregate Revenue
Requirement (ARR) of MSEDCL for Wires Business for the FY 2019 -20 is as
follows:
MSEDCL
January 20
107
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 118: ARR for Wires Business for the FY 2019-20
Rs. Crs
Particulars
Operation & Maintenance Expenses
Depreciation
Interest on Loan Capital
Interest on Normative Working Capital
Interest on deposit from Consumers and Distribution
System Users
Other Finance Charges
Provision for bad and doubtful debts
Contribution to contingency reserves
Return on Equity Capital
Aggregate Revenue Requirement
FY 2019-20
(Approved)
5,015.05
2,170.28
1,323.93
126.77
FY 2019-20
(Estimated)
4,620.17
2,334.93
1,214.59
127.89
81.55
79.60
(1.95)
1,931.03
10,648.62
3.11
84.54
128.56
1,658.64
10,252.04
3.11
84.54
128.56
(272.39)
(396.58)
Deviation
(394.88)
164.65
(109.34)
1.11
6.25.2 Considering the parameters discussed above, the Aggregate Revenue
Requirement (ARR) of MSEDCL for Supply Business for the FY 2019 -20 is as
follows:
Table 119: ARR for Supply Business for the FY 2019-20
Rs. Crs
Particulars
Power Purchase Expenses
Operation & Maintenance Expenses
Depreciation Expenses
Interest on Loan Capital
Interest on Normative Working Capital
Interest on Consumers Security Deposit
Other Finance Charges
Provision for bad and doubtful debts
Other Expenses
Intra-State Transmission Charges MSLDC charge
Incentives/Discounts
Contribution to Contingency Reserves
Return on Equity Capital
RLC refund
Past Period Adjustment by Commission
Revenue Gap recovery allowed
Impact of payment to MPECS in future years
Aggregate Revenue Requirement for Supply
Business
MSEDCL
FY 2019-20
(Approved)
52,738.26
2,700.42
241.13
147.10
733.99
69.79
4,863.74
271.86
214.56
853.08
2,562.93
40.17
FY 2019-20
(Estimated)
56,305.45
2,487.79
259.44
134.95
716.42
27.99
760.89
50.08
4,867.55
307.03
14.28
208.15
1.84
853.08
2,562.93
40.17
65,437.03
69,598.04
January 20
Deviation
3,567.19
(212.63)
18.31
(12.15)
(17.57)
27.99
760.89
(19.71)
3.81
35.17
14.28
(6.41)
1.84
4,161.01
108
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
6.26 Revenue for FY 2019-20
6.26.1 MSEDCL has estimated the revenue for FY 2019-20 based on the available
information up to Sept 2019 and projection for balance 6 months of the FY
2019-20 as shown in following table.
Table 120: Revenue for FY 2019-20
Rs. Crs
FY 2019-20
(Approved)
74,179.45
Particulars
Revenue from Sale of Power
FY 2019-20
(Estimated)
76,371.19
Deviation
2,191.74
6.26.2 MSEDCL humbly requests to the Hon’ble Commission to consider the revenue
from sale of power as shown in above table
6.27 Non-Tariff Income for FY 2019-20
6.27.1 MSEDCL has certain sources of non-tariff income viz. interest on arrears of
consumers, delayed payment charges, interest on staff loans and advances,
sale of scrap, interest on investment etc.
6.27.2 Considering the available information for the first six months of FY 2019-20 and
projections for the first six months, the Non-Tariff Income for FY 2019-20 has
been estimated as given in the table below:
Table 121: Non-Tariff Income for FY 2019-20
Rs. Crs
Particulars
Rents of land or buildings
Sale of Scrap
Income from investments
Interest from Franchisee
Income from sale of tender documents
Prompt payment discount from REC/PFC
Other/Miscellaneous receipts
Non Tariff Income
FY 2019-20
(Approved)
1.27
56.10
17.25
6.88
16.22
1,006.03
1,103.75
FY 2019-20
(Estimated)
1.03
52.05
18.50
8.92
12.16
269.00
361.66
Deviation
(0.24)
-4.05
1.25
2.04
-4.06
-737.03
-742.09
6.27.3 As provided in the Regulation 36.3 of the MYT Regulations 2015, delayed
Payment Charge and Interest on Delayed Payment is not considered under
Non-Tariff Income.
MSEDCL
January 20
109
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
6.27.4 MSEDCL has also not considered income from grants and contribution reported
under non-tariff income, as the treatment to the same is already considered
while computing the depreciation for the FY 2019- 20.
6.28 Income from Open Access Charges for FY 2019-20
6.28.1 Considering the available information for the first six months of FY 2019-20 and
considering it to remain at same level of first six months for the remaining six
months of FY 2019-20, MSEDCL has estimated the Income from Open Access
for FY 2019-20.
Table 122: Income from Open Access Charges FY 2019-20
Rs. Crs
Particulars
Income from Open Access Charges
FY 2019-20
(Approved)
674.71
FY 2019-20
(Estimated)
211.92
Deviation
-462.80
6.29 Income from Trading of Surplus Power for FY 2019-20
6.29.1 MSEDCL has estimated the Income from Trading of Surplus Power for FY
2019-20 as shown in the table below:
Table 123: Income from Power trading of surplus power for FY 2019-20
Rs. Crs
Particulars
Income from Trading of Surplus Power
FY 2019-20
(Approved)
-
FY 2019-20
(Estimated)
298.18
Deviation
298.18
6.29.2 MSEDCL humbly requests to the Hon’ble Commission to allow the income from
sale of surplus power as shown in above table.
6.30 Income from Wheeling Charges for FY 2019-20
6.30.1 MSEDCL has estimated the Income from Wheeling Charges to be same as that
of for FY 2018-19 as per audited accounts for FY 2019-20.
Table 124: Income from Wheeling Charges FY 2019-20
Rs. Crs
Particulars
Income from Wheeling Charges
MSEDCL
FY 2019-20
(Approved)
1.61
January 20
FY 2019-20
(Estimated)
1.79
Deviation
0.17
110
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
6.30.2 MSEDCL humbly requests to the Hon’ble Commission to approve the Income
from Wheeling Charges as shown in above table.
6.31 Income from Additional Surcharge for FY 2019-20
6.31.1 Considering the available information for first six months of FY 2019-20 and
estimating it to remain at the same level for the remaining six months as that
for the first six months, MSEDCL has estimated the Income from Additional
Surcharge for FY 2019-20.
Table 125: Income from Additional Surcharge for FY 2019-20
Rs. Crs
Particulars
Income from Additional Surcharge
FY 2019-20 FY 2019-20
(Approved) (Estimated)
126.12
317.14
Deviation
191.03
6.31.2 MSEDCL humbly requests to the Hon’ble Commission to approve the Income
from Additional Surcharge as shown in above table.
6.32 Revenue Gap/(Surplus) for FY 2019-20
6.32.1 Based on the above analysis, the summary of ARR for the Wires Business and
Supply Business, estimated and as approved by the Hon’ble Commission, for
FY 2019-20 is presented in the Table below.
MSEDCL
January 20
111
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 126: Revenue Gap/ (Surplus) for FY 2019-20
Rs. Crs
Particulars
Power Purchase Expenses
Operation & Maintenance Expenses
Depreciation Expenses
Interest on Loan Capital
Interest on Normative Working Capital
Interest on Consumers Security Deposit
Other Finance Charges
Provision for bad and doubtful debts
Other Expenses
Intra-State Transmission Charges MSLDC charge
Incentives/Discounts
Contribution to Contingency Reserves
Return on Equity Capital
RLC refund
Past Period Adjustment by Commission
Revenue Gap Allowed
Impact of payment to MPECS
Aggregate Revenue Requirement
Revenue from Sale of Power
Non-Tariff Income
Income from Open Access Charges
Income from Trading of Surplus Power
Income from Wheeling Charges
Income from Additional Surcharge
Total Revenue
Revenue Gap/(Surplus)
FY 2019-20
(Approved)
52,738.26
7,715.47
2,411.41
1,471.03
126.77
815.54
69.79
4,863.74
271.86
2,145.59
853.08
2,562.93
40.17
76,085.65
74,179.45
1,103.75
674.71
1.62
126.12
76,085.65
FY 2019-20
(Estimated)
56,305.45
7,107.96
2,594.37
1,349.54
127.89
796.03
31.10
845.43
50.08
4,867.55
307.03
142.85
1,866.79
1.84
853.08
2,562.93
40.17
79,850.07
76,371.19
361.66
211.92
298.18
1.79
317.14
77,561.88
2,288.19
Deviation
3,567.19
(607.51)
182.96
(121.49)
1.11
(19.52)
31.10
845.43
(19.71)
3.81
35.17
(278.80)
1.84
3,764.43
2,191.74
(742.09)
(462.80)
298.18
0.17
191.03
1,476.24
2,288.19
6.32.2 The Hon’ble Commission in its MTR Order dated 12th September 2018 had
approved Aggregate Revenue Requirement of Rs. 76,085.65 Cr. for FY 201920. MSEDCL submits the provisional ARR of Rs. 79,850.07 Cr. with a deviation
of Rs. 3,764.43 Cr. Considering the impact of revenue and other income, the
truing up requirement works out to be Rs. 2,288.19 Cr. MSEDCL requests the
Hon’ble Commission to allow MSEDCL the provisional true up requirement as
submitted above.
MSEDCL
January 20
112
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
7
7.1
AGGREGATE REVENUE REQUIREMENT FOR FY 20-21 TO FY 24-25
Preamble
7.1.1 Hon’ble Commission has notified the MERC (Multi Year Tariff) Regulations
2019 (hereinafter to be referred as MYT Regulations 2019) on 1st August 2019
which are applicable for the period FY 2020-21 to FY 2024-25 (the Control
Period). This Chapter summarizes the Aggregate Revenue Requirement (ARR)
for the Fourth Control Period from FY 2020-21 to FY 2024-25. The estimations/
projections for the period from FY 2020-21 to FY 2024-25 have been made
considering the provisions of the MERC (MYT) Regulations, 2019.
7.2
Approach for Sales Projection for Control Period
7.2.1 MSEDCL submits that Regulation 82.1 of MERC (MYT) Regulations, 2019
provides that Distribution License is required to submit a month-wise forecast
of the expected sales of electricity to each tariff category/ sub-category and to
each Tariff slab within such Tariff category/sub-category. The relevant extracts
of the regulation are reproduced below.
“82 Sales Forecast
82.1 The Distribution Licensee shall submit a month-wise forecast of the
expected sales of electricity to each Tariff category/sub-category and to each
Tariff slab within such Tariff category/sub-category to the Commission for
approval along with the Multi-Year Tariff Petition, as specified in these
Regulations:
Provided that the Distribution Licensee shall submit relevant details regarding
category-wise sales separately for each Distribution Franchisee area within its
Licence area, as well as the aggregated category-wise sales in its Licence
area.”
7.2.2 It has been observed from the 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, MSEDCL has estimated energy consumption for various customer
categories primarily based on the CAGR trends during past years. Wherever it
MSEDCL
January 20
113
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
is observed that the trend is unreasonable/unsustainable or recent
developments, the growth factors have been corrected to arrive at more realistic
projections.
7.2.3 MSEDCL submits that the break-up of the past sales and the CAGR growth
rates for different periods (5 years, 3 years and year on year) is provided in the
following tables. It may be noted that the 5 year CAGR growth rate is for the
period between FY 2013-14 & FY 2018-19 while the 3 year CAGR growth rate
is for the period between FY 2015-16 & FY 2018-19 whereas year on year is
for FY 2018-19 over FY 2017-18.
7.2.4 Historical trend in HT Category sales growth for MSEDCL (including sales in
Franchisee Area) is given in following table:
Table 127: Historical Sales Growth and CAGR (HT Category)
Category
HT-I Industries
HT-II Commercial
HT III Railways
HT IV-PWW
HT V Agricultural
HT VI Bulk Supply
(Housing Complex)
HT Temporary
HT-IX Public services
MSPGCL AUX SUPPLY
HT EV Charging Stations
Total -HT Sales
FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18
MUs
5 Year 3 Year Y-oY
FY 18-19
CAGR CAGR Growth
31,381
6%
10%
10%
1,805
0%
-2%
-6%
77
-45%
-58%
17%
1,900
3%
4%
-1%
1,413
11%
3%
45%
23,721
1,786
1,563
1,678
848
25,131
1,886
1,579
1,736
871
23,315
1,927
1,072
1,698
1,288
23,366
1,825
86
1,702
1,331
28,470
1,926
66
1,911
974
226
221
219
213
227
236
1%
2%
4%
3
801
14
30,640
6
860
61
32,352
5
907
83
30,514
4
922
179
29,628
5
1,003
218
34,799
5
1,004
184
0.31
38,004
12%
5%
68%
4%
3%
3%
30%
8%
9%
0%
-16%
9%
7.2.5 Historical trend in LT Category sales growth (including sales in Franchisee
Area) is given in following table.
MSEDCL
January 20
114
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 128: Historical Sales Growth and CAGR (LT Category)
Category
FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19
LT Category
LT I -BPL
138
LT I Domestic
16,281
LT II Non Domestic
3,914
LT III PWW
593
LT IV Agriculture
20,915
LT V Powerloom
2,878
LT V Industrial General
4,599
LT VI Streetlight
1,328
LT VII- Temporary Connection
23
LT VIII Advertisement & Hoardings
3
LT IX – Crematoriums & Burial Grounds
2
LT X - Public services
87
LT Prepaid
12
P.D. Consumers
-14
Total LT Sales
50,760
Total Sales
81,400
7.3
102
17,678
4,087
627
25,786
3,222
4,816
1,498
19
3
1
203
13
-10
58,045
90,397
5 Year
CAGR
3 Year
CAGR
MUs
Y-oY
Growth
77
18,861
4,358
673
27,512
3,243
5,026
1,667
18
3
1
307
61
18,962
4,524
691
27,525
3,270
5,114
1,751
16
4
2
361
55
19,994
5,444
707
29,921
3,551
4,903
1,843
17
5
2
431
41
20,788
5,874
803
32,696
3,645
5,138
2,007
24
4
2
504
-22%
5%
8%
6%
9%
5%
2%
9%
1%
6%
4%
42%
-19%
3%
10%
6%
6%
4%
1%
6%
9%
7%
11%
18%
-26%
4%
8%
14%
9%
3%
5%
9%
43%
-6%
5%
17%
-11
61,736
92,250
-5
62,275
91,903
66,874
1,01,673
71,526
1,09,531
7%
6%
5%
6%
7%
8%
CAGR considered for Sales Projection for Control Period
7.3.1 MSEDCL submits that it has witnessed a normal growth in Sales in the last few
years. MSEDCL has been able to considerably increase the availability of
power, because of which the sales of MSEDCL has grown. Additional
availability of power to the consumers resulted in uninterrupted supply of power
to all consumers (except AG with stipulated hours of supply) and hence resulted
in increase in the consumption and in turn the Sales of MSEDCL.
7.3.2 Keeping the variations over a period in mind, MSEDCL has considered the 3
years/ 5 years CAGRs for projecting the sales. Wherever the trend was
unreasonable /unsustainable, the growth factors have been corrected to arrive
at more realistic projections.
7.3.3 The category wise CAGRs considered for the Control Period from FY 2020-21
to FY 2024-25 along with rationale for HT Category have been shown in the
following table.
MSEDCL
January 20
115
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 129: CAGR Considered for Sales Projections (HT Category)
Consumer Category
HT-IND 11 KV
CAGR
Justification/Rationale
Considered
4%
5 year CAGR considered.
HT-IND 22 KV
4%
5 year & 3 year CAGR coming 5% & 8%, respectively.
However, realistic growth rate of 4% considered
HT-IND 33 KV
4%
5 year & 3 year CAGR coming 5% & 11%, respectively.
However, realistic growth rate of 4% considered
HT-IND EHV
4%
HT-COMM 11 KV
HT-COMM 22 KV
HT-COMM 33 KV
HT-COMM EHV
HT RAILWAY/METRO/MONO 11 KV
HT RAILWAY/METRO/MONO 22 KV
HT RAILWAY/METRO/MONO 33 KV
HT RAILWAY/METRO/MONO EHV
HT-PWW 11 KV
HT-PWW 22 KV
HT-PWW 33 KV
HT-PWW EHV
2%
2%
2%
2%
2%
2%
2%
2%
5%
5%
5%
5%
HT-AGRICULTURE 11 KV
0%
HT-AGRICULTURE 22 KV
HT-AGRICULTURE 33 KV
HT-AGRICULTURE EHV
HT-AGRICULTURE OTHERS 11 KV
HT-AGRICULTURE OTHERS 22 KV
HT-AGRICULTURE OTHERS 33 KV
HT-GROUP HOUSING 11 KV
HT-GROUP HOUSING 22 KV
HT-GROUP HOUSING 33 KV
HT-PUBLIC SER.-GOVT 11 KV
HT-PUBLIC SER.-GOVT 22 KV
HT-PUBLIC SER.-GOVT 33 KV
HT-PUBLIC SER.-OTHER 11 KV
20%
3%
17%
12%
7%
18%
1%
1%
0%
2%
2%
2%
2%
HT-PUBLIC SER.-OTHER 22 KV
2%
HT-PUBLIC SER.-OTHER 33 KV
2%
HT-PUBLIC SER.-OTHER EHV
2%
5 year & 3 year CAGR coming quite high, i.e. 9% and
18%, hence realisting CAGR of 4% has been
considered
Unrealisting trends in CAGR observed due to change in
category of sume consumers from Commercial to
Public Services. Hence, realistic growth rate of 2% has
been considered
Negative trend in CAGR observed due to migration of
Railway/ Metro/ Mono Rail consumers to Open
Access. Thus, nominal growth rate of 2% has been
observed considering upcoming metro rail in Nagour,
Varying trends in CAGR observed in PWW category
across all voltage levels. However, considering
Government initiative of "Har Ghar Jal", a realistic
growth rate of 5% has been considered across all
3 year CAGR -3%. Hence, 5 year CAGR has been
considered
5 Yr CAGR considered
5 Yr CAGR considered
5 Year CAGR has been considered
5 Yr CAGR considered
5 Yr CAGR considered
5 Yr CAGR considered
5 Yr CAGR considered
5 Yr CAGR considered
Negative CAGRs, hence 0% considered
3 Yr CAGR considered
3 Yr CAGR considered
CAGR considered for 11/22 KV considered
2 Year CAGR considered
Realistic growth rate of 2% considered inline with that
considered for 11 kV sales
Realistic growth rate of 2% considered inline with that
considered for 11 kV sales
Realistic growth rate of 2% considered inline with that
considered for 11 kV sales
7.3.4 The category wise CAGRs considered for the Control Period from FY 2020-21
to FY 2024-25 along with rationale for LT Category have been shown in the
following table.
MSEDCL
January 20
116
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 130: CAGR Considered for Sales Projections (LT Category)
Consumer Category
LT-I (A): LT- BPL
CAGR
Considered
Justification/Rationale
5 & 3 year CAGR coming -22% & -19%, respectively. However,
considering the GoI Schemes for Household Electrification, a
realistic growth considered
10%
LT-I (B) : LT-Residential( Other than BPL)
1-100 Units
3%
101-300 Units
2%
301-500 Units
1%
501-1000 Units
-1%
Above 1000 Units
LT-II : LT- Non Residential
0-20 KW
0-200 Units
-1%
Above 200 units
12%
>20-<=50 KW
7%
>50 KW
10%
LT-III : LT-Public Water Works
0%
0-20 KW
5%
20-<=40 KW
5%
> 40 KW
10%
*** LT-AG-Unmetered (Pumpsets)
LT-AG Metered (Pumpsets)
LT-AG Metered (Others)
LT V(A) : LT Industry- Power Looms
0-20 KW (Upto & including 27 HP)
Above 20 KW (above 27 HP)
LT V(B) : LT Industry- General
0-20 KW (Upto & including 27 HP)
Above 20 KW (above 27 HP)
LT X - Public services - Govt
0-20 KW
0-200 Units
>200 units
>20-50 kW
>50 kW
LT X - Public services - Other
0-20 KW
0%
4%
0%
0%
4%
4%
0%
4%
4%
0%
0%
6%
6%
6%
6%
0%
0%
0-200 Units
6%
>200 units
>20-50 kW
>50 kW
LT VI – Street Light
Gram panchayat A, B & C Class Municipal Council
Municipal corporation Area
LT VII – Temporary connection
Temporary Connection (Religious)
Temporary Connection (Other Purposes)
LT VIII - Advertisements & Hoardings
LT IX - Crematorium and Burial Grounds
6%
6%
6%
MSEDCL
Considering the CAGRs, realistic growth of 3% considered in view of
the increased use of LEDs;
Considering the CAGRs, realistic growth of 2% considered in view of
the increased use of LEDs;;
Considering the CAGRs, realistic growth of 1% considered;
Considering the CAGRs and impact of Rooftop Solar, realistic
growth of -1% considered;
4%
Considering the CAGRs, realistic growth of 4% considered;
Considering the varying CAGRs, realistic growth of 12% considered
which in equivalent to 5 yr CAGR;
Considering the varying CAGRs, realistic growth of 7% considered
which in equivalent to 5 yr CAGR;
Considering the varying CAGRs, realistic growth of 10% considered
which in equivalent to 5 yr CAGR;
Considering the varying CAGRs, realistic growth of 5% considered
which in equivalent to 5 yr CAGR;
Considering the varying CAGRs, realistic growth of 5% considered
which in equivalent to 5 yr CAGR;
3 & 5 year CAGR coming quite high. realistic growth of 10%
considering Govt initiative of "Har Ghar Jal"
No new connections, hence 0%
3 year CAGR 10%. Realistic growth of 4%
3 Year CAGR coming quite high. Realistic rate of 0% considered
3 & 5 year CAGR coming quite low. Realistic growth of 4%
3 & 5 year CAGR coming quite high. Realistic growth of 4%
5 & 3 year CAGR coming negative. Realistic growth of 4%
5 & 3 year CAGR coming 6%. Realistic growth of 4%
3 & 5 year CAGR coming quite high. Realistic growth of 6%
3 & 5 year CAGR coming quite high. Realistic growth of 6%
3 & 5 year CAGR coming quite high. Realistic growth of 6%
3 & 5 year CAGR coming quite high. Realistic growth of 6%
5 year CAGR coming 29% & 3 year CAGR coming -2%, hence
realistic growth of 6%
3 & 5 year CAGR coming quite high. Realistic growth of 6%
3 & 5 year CAGR coming quite high. Realistic growth of 6%
3 & 5 year CAGR coming quite high. Realistic growth of 6%
2% YoY Growth considered
4% YoY Growth considered
10%
10%
8%
0%
CAGRs too high, realistic growth considered
CAGRs too high, realistic growth considered
3 yr CAGR and YoY 8%, hence, YoY considered
CAGRs are varying, realistic growth considered
January 20
117
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
7.4
Sales Projections for Control Period
7.4.1 MSEDCL submits that it has considered FY 2018-19 as the base year for
projection of sales for the fourth control period FY 2020-21 to FY 2024-25.
Based on the sales for FY 2018-19 and the CAGR as shown in above tables,
MSEDCL has projected the sales for various categories. The sales projections
of HT Categories for the fourth control period are shown in the following table:
Table 131: Sales Projections (HT category) for the Control Period
Category
HT-I Industries
HT-II Commercial
HT III Railways
HT IV-PWW
HT V Agricultural
HT VI Bulk Supply (Housing Complex)
HT Temporary
HT-IX Public services
MSPGCL AUX SUPPLY
HT Ag Others
HT EV Charging Stations
Total -HT Sales
FY 20-21
Projected
33,586
1,850
80
1,745
1,486
239
5
1,044
184
299
0.31
40,519
FY 21-22
Projected
34,929
1,887
82
1,832
1,685
242
5
1,065
184
332
0.31
42,243
FY 22-23
Projected
36,326
1,925
84
1,924
1,919
244
5
1,086
184
368
0.31
44,065
FY 23-24
Projected
37,779
1,963
85
2,020
2,192
246
5
1,108
184
410
0.31
45,993
MUs
FY 24-25
Projected
39,290
2,003
87
2,121
2,512
249
5
1,130
184
456
0.31
48,037
7.4.2 Based on the above growth rate, it is estimated that HT category will witness a
growth of ~5% on YoY basis.
7.4.3 For LT AG Category, MSEDCL has considered a growth rate of 4% considering
the fact that MSEDCL is planning to provide future AG connections through OffGrid Solar Pumps. Details of the Scheme are provided in Details of Capex
Chapter at Paragraph 16.28. MSEDCL has considered the average of
consumption for FY 17-18, FY 18-19 and FY 19-20 as base for projections of
AG sales for Control Period.
7.4.4 The sales projections of LT Categories for the fourth control period are shown
in the following table:
MSEDCL
January 20
118
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 132: Sales Projections (LT Category)
Category
LT Category
LT I -BPL
LT I Domestic
LT II Non Domestic
LT III PWW
LT IV Agriculture
LT V Powerloom
LT V Industrial General
LT VI Streetlight
LT VII- Temporary Connection
LT VIII Advertisement & Hoardings
LT IX – Crematoriums & Burial Grounds
LT X - Public services
LT XI EV Charging Stations
Total LT Sales
Total Sales
MUs
FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Projected Projected Projected Projected Projected
140
21,583
6,360
886
31,374
2,132
5,265
2,383
24
5
2
154
22,120
6,900
932
32,185
2,217
5,475
2,610
24
5
2
169
22,674
7,491
981
33,028
2,306
5,694
2,863
24
5
2
186
23,242
8,141
1,033
33,904
2,398
5,922
3,145
24
6
2
205
23,827
8,854
1,088
34,816
2,494
6,159
3,458
24
6
2
569
0.23
70,722
1,11,241
609
0.23
73,233
1,15,476
652
0.23
75,889
1,19,954
698
0.23
78,701
1,24,694
748
0.23
81,682
1,29,719
7.4.5 Based on the above growth rate, it is estimated that LT category as well as
overall sales will witness a growth of ~4% on YoY basis.
7.4.6 MSEDCL further submits that in the Petition it has proposed the introduction of
kVAh based billing for HT consumers. In view of the same, for the purpose of
determination of revenue from proposed kVAh based tariff, it has converted the
kWh sales into kVAh sales considering category wise power factors as shown
in Table 185.
7.5
Sales projections for Distribution Franchisees for Control Period
7.5.1 MSEDCL submits that due to financial condition, M/s SNDL, the Nagpur DF, in
its Letter dated August 12, 2019 and September 6, 2019 showed its inability to
maintain the electricity distribution system and requested MSEDCL to take over
the Franchisee area.
7.5.2 Accordingly, the Distribution franchisee of Nagpur has been terminated as per
MSEDCL
January 20
119
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Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
the provisions of Distribution Franchisee Agreement (DFA) on September 9,
2019. The distribution operations of Nagpur DF area has been taken over by
MSEDCL on September 9, 2019.
7.5.3 MSEDCL further submits that in Form “F1 MSEDCL Yearly Sales Forecast”,
MSEDCL has shown category wise sales of MSEDCL including Distribution
Franchisee. The category wise sales for Distribution Franchisee have been
calculated in the respective form using the same methodology and CAGR for
respective category used for MSEDCL. Since, MSEDCL has taken over the
Nagpur DF, for the purpose of revenue estimation for the Control Period,
MSEDCL has included the sales in Nagpur DF area in its own sale instead of
input sale.
7.5.4 Considering the projected sales and estimated loss levels, MSEDCL has
projected the input level sales of said DFs for the Control Period is shown in
following table.
Table 133: Input Sales for Bhiwandi DF for the Control Period
Category
Bhiwandi
Category Wise Sales
Distribution Loss
Input Sales
FY 20-21
Projected
MU
FY 21-22 FY 22-23 FY 23-24 FY 24-25
Projected Projected Projected Projected
3,269.49 3,407.40 3,551.80 3,703.03 3,861.50
13.01%
12.76%
12.51%
12.26%
12.01%
3,758.46 3,905.78 4,059.66 4,220.46 4,388.56
7.5.5 Considering the decision of Hon’ble Commission in its Order dated 18th June
2014 in Case No. 85 of 2010, MSEDCL has considered area of supply of
MPECS as merged in the area of supply of MSEDCL for present projections.
7.6
Approach for No. of Consumers Projection for Control Period
7.6.1 MSEDCL submits that, similar to sales projections, MSEDCL has also adopted
the historical trend method for projecting category wise no. of consumers of
MSEDCL. The Break-up of category wise no. of consumers and the 5 year
CAGR growth rate is for the period between FY 2013-14 & FY 2018-19 while
the 3 year CAGR growth rate is for the period between FY 2015-16 & FY 2018-
MSEDCL
January 20
120
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
19 whereas year on year is for FY 2018-19 over FY 2017-18. Wherever it is
observed that the trend is unreasonable or unsustainable, the growth factors
have been corrected to arrive at more realistic projections.
7.6.2 Historical trend in No. of Consumers in HT Category for MSEDCL (Excluding
Bhiwandi Franchisee) is given in following table.
Table 134: Historical Growth and CAGR No. of Consumers (HT Category)
Category
FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19
HT-I Industries
12,730
HT-II Commercial
2,910
HT III Railways
44
HT IV-PWW
847
HT V Agricultural
1,292
HT VI Bulk Supply (Housing Complex) 227
HT Temporary
11
HT-IX Public services
1,077
MSPGCL AUX SUPPLY
14
HT EV Charging Stations
Total -HT Consumers
19,152
12,932
3,053
44
941
1,338
234
10
1,147
23
19,722
13,257
3,072
10
963
1,380
242
7
1,205
24
20,160
13,560
3,098
24
995
1,430
248
10
1,261
28
20,654
13,998
3,137
79
967
1,435
242
11
1,313
28
21,210
14,353
3,165
82
983
1,446
266
11
1,357
27
2
21,692
5 Year
CAGR
2%
2%
13%
3%
2%
3%
0%
5%
14%
3%
3 Year
Y-oY
CAGR Growth
3%
3%
1%
1%
102%
4%
1%
2%
2%
1%
3%
10%
16%
0%
4%
3%
4%
-4%
2%
2%
7.6.3 Historical trend in No. of Consumers in LT Category for MSEDCL (Excluding
Bhiwandi Franchisee) is given in following table.
Table 135: Historical Growth and CAGR No. of Consumers (LT Category)
Category
LT Category
LT I -BPL
LT I Domestic
LT II Non Domestic
LT III PWW
LT IV Agriculture
LT V Powerloom
LT V Industrial General
LT VI Streetlight
LT VII- Temporary Connection
LT VIII Advertisement &
Hoardings
LT IX – Crematoriums &
Burial Grounds
LT X - Public services
LT Prepaid
Total LT Consumers
Total Consumers
7.7
FY 13-14
FY 14-15
FY 15-16
4,46,132
1,58,00,457
15,61,091
46,949
36,66,591
80,903
3,02,400
81,819
3,43,979
1,66,03,380
16,16,503
48,337
38,31,998
82,088
3,10,683
85,615
2,65,105
1,73,74,057
16,83,093
50,118
39,87,916
82,377
3,19,330
88,561
2,922
2,471
2,639
2,640
2,015
2,027
2,203
2,527
104
41,230
14,482
2,20,47,095
2,20,66,247
126
73,782
14,937
2,30,15,926
2,30,35,648
152
78,942
14,090
2,39,48,583
2,39,68,743
FY 16-17
FY 17-18
2,09,731
1,76,998
1,80,24,487 1,86,32,604
17,56,626
18,37,478
51,833
51,671
41,03,781
41,79,004
81,682
73,178
3,16,776
3,07,183
91,293
93,798
FY 18-19
5 Year
CAGR
3 Year Y-oY
CAGR Growth
3,50,243
1,94,27,851
19,04,557
52,808
42,44,685
67,653
3,15,673
96,466
-5%
4%
4%
2%
3%
-4%
1%
3%
10%
4%
4%
2%
2%
-6%
0%
3%
98%
4%
4%
2%
2%
-8%
3%
3%
3,673
6,028
16%
32%
64%
2,543
2,742
6%
8%
8%
180
244
83,487
92,691
13,071
12,097
2,47,38,114 2,54,63,162
2,47,58,768 2,54,84,372
229
1,04,129
10,809
2,65,83,873
2,66,05,565
17%
20%
-6%
4%
4%
15%
10%
-8%
4%
4%
-6%
12%
-11%
4%
4%
CAGR considered for Projection of Nos. Consumer for Control Period
7.7.1 MSEDCL has considered CAGR methodology for projections. Wherever it is
MSEDCL
January 20
121
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Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
observed that the trend is unreasonable or unsustainable, the growth factors
have been corrected to arrive at more realistic projections considering year on
year growth rate.
7.7.2 Following tables provide the CAGRs considered for projecting the number of
consumers for the third MYT control period.
MSEDCL
January 20
122
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 136: CAGR Considered for No. of Consumers Projections (HT Category)
Category
HT-IND 11 KV
HT-IND 22 KV
HT-IND 33 KV
HT-IND EHV
HT-COMM 11 KV
HT-COMM 22 KV
HT-COMM 33 KV
CAGR
Considered
2%
1%
3%
6%
2%
3%
2%
HT-COMM EHV
0%
HT RAILWAY/METRO/MONO 11 KV
HT RAILWAY/METRO/MONO 22 KV
HT RAILWAY/METRO/MONO 33 KV
HT RAILWAY/METRO/MONO EHV
HT-PWW 11 KV
HT-PWW 22 KV
HT-PWW 33 KV
HT-PWW EHV
HT-AGRICULTURE 11 KV
HT-AGRICULTURE 22 KV
HT-AGRICULTURE 33 KV
HT-AGRICULTURE EHV
HT-AGRICULTURE OTHERS 11 KV
HT-AGRICULTURE OTHERS 22 KV
HT-AGRICULTURE OTHERS 33 KV
HT-POULTRY 11 AND 22 KV
HT-POULTRY 33 KV
HT-POULTRY EHV
HT-AG HIGHTECH 11 AND 22 KV
HT-AG HIGHTECH 33 KV
HT-AG HIGHTECH EHV
HT-AG (COLD STORAGE) 11 AND 22 KV
HT-AG (COLD STORAGE) 33 KV
HT-AG (COLD STORAGE) EHV
HT-GROUP HOUSING 11 KV
HT-GROUP HOUSING 22 KV
0%
0%
0%
0%
0%
0%
3%
0%
0%
0%
3%
9%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
HT-GROUP HOUSING 33 KV
0%
HT-PUBLIC SER.-GOVT 11 KV
HT-PUBLIC SER.-GOVT 22 KV
HT-PUBLIC SER.-GOVT 33 KV
HT-PUBLIC SER.-OTHER 11 KV
HT-PUBLIC SER.-OTHER 22 KV
HT-PUBLIC SER.-OTHER 33 KV
HT-PUBLIC SER.-OTHER EHV
HT-EV CHARGING STATIONS 11 KV
HT-EV CHARGING STATIONS 22 KV
MSEDCL
0%
0%
10%
0%
0%
10%
0%
0%
0%
Justification/Rationale
5 & 3 year CAGR Negative. Realistic rate of 2%
Realistic Rate of 1% considered
YoY Growth rate of 3% considered
3 Year CAGR considered
3 & 5 Year CAGR Negative. Realistic growth of 2%
Realistic growth of 3% considered
3 & 5 Year CAGR Negative. Realistic growth of 2%
3 & 5 Year CAGR Negative. Realistic growth of 0% considered
as the no. of consumers are very less
3 & 5 year CAGR quite high. Realistic growth of 0%
3 & 5 year CAGR quite high. Realistic growth of 0%
3 & 5 year CAGR quite high. Realistic growth of 0%
3 & 5 year CAGR negative. Realistic growth of 0%
3 & 5 year CAGR negative. Realistic growth of 0%
3 & 5 year CAGR negative. Realistic growth of 0%
3 & 5 year CAGR quite high. Realistic growth of 3%
3 & 5 year CAGR quite high. Realistic growth of 0%
3 & 5 year CAGR negative. Realistic growth of 0%
3 & 5 year CAGR negative. Realistic growth of 0%
3 Year CAGR considered
YoY Growth considered
Inconsistent CAGR observed. Realistic growth of 0%
Inconsistent CAGR observed. Realistic growth of 0%
YoY Growth considered
Realistic rate of 0% considered
Realistic rate of 0% considered
Realistic rate of 0% considered
Realistic rate of 0% considered
Realistic rate of 0% considered
Realistic rate of 0% considered
Realistic rate of 0% considered
Realistic rate of 0% considered
Realistic rate of 0% considered
3 & 5 year CAGR negative. Realistic growth of 0%
Realistic growth of 0% considered
Realistic growth of 0% in line with other voltage level
consumers
3 Year CAGR considered
Realistic rate of 0% considered
3 Year CAGR coming high. Realistic growth of 10%
CAGR Negative. Realistic growth of 0%
Realistic rate of 0% considered
Considering YoY Growth too high, realistic growth considered
3 Year CAGR considered
0% growth considered
0% growth considered
January 20
123
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 137: CAGR Considered for No. of Consumers Projections (LT Category)
Consumer Category
CAGR
Justification/Rationale
Considered
LT Category
LT-I (A): LT- BPL
10%
LT-I (B) : LT-Residential( Other than BPL)
LT-II : LT- Non Residential
0-20 KW
>20-<=50 KW
>50 KW
LT-III : LT-Public Water Works
0-20 KW
20-<=40 KW
> 40 KW
LT-IV: LT-Agriculture
*** LT-AG-Unmetered (Pumpsets)
LT-AG Metered (Pumpsets)
LT V(A) : LT Industry- Power Looms
4%
Considering the GoI Schemes for Household Electrification, a
realistic growth considered
3 year CAGR considered
4%
3%
10%
3 year CAGR considered
3 & 5 year CAGR coming high. YoY growth of 3% considered
Year on Year growth considered
2%
9%
10%
5 Year CAGR considered
5 Year CAGR considered
3 & 5 year CAGR coming high. Realistic growth of 10%
0%
3%
No new connections, hence 0%
3 & 5 year CAGR coming high. YoY growth of 3% considered
0-20 KW (Upto & including 27 HP)
0%
Above 20 KW (above 27 HP)
0%
LT V(B) : LT Industry- General
0-20 KW (Upto & including 27 HP)
Above 20 KW (above 27 HP)
LT X - Public services - Govt
0-20 KW
>20-50 kW
>50 kW
LT X - Public services - Other
0-20 KW
>20-50 kW
>50 kW
Street Light (LT-VI)
Grampanchayat A, B & C Class Municipal Council
Municipal corporation Area
Temporary Connection (LT-VII)
Temporary Connection (Religious)
Temporary Connection (Other Purposes)
LT-VIII : LT-Advertisements & Hordings
LT-IX : LT-Crematorium and Burial Grounds
CAGR including YoY growth coming negative. Hence, realistic
growth of 0%
CAGR including YoY growth coming negative. Hence, realistic
growth of 0%
3%
3%
CAGRs are varying. Considering the no. of consumers for Sept19 and increase in FY 18-19, YoY Growth of 3% considered.
10%
10%
10%
3 Year CAGR coming quite high. Realistic growth of 10%
3 Year CAGR coming quite high. Realistic growth of 10%
3 Year CAGR coming quite high. Realistic growth of 10%
5%
5%
5%
3 Yr CAGR coming 0%. Realistic growth of 5%
3 Yr CAGR coming quite high. Realistic growth of 5%
3 Yr CAGR coming quite high. Realistic growth of 5%
2%
4%
Y-o-Y Considered
Y-o-Y Considered
10%
10%
8%
0%
Varying CAGR. Realistic growth of 10%
Varying CAGR. Realistic growth of 10%
3 Yrs CAGR and Y-o-Y Growth 8%, hence 8% considered
Y-o-Y Growth negative, hence, realistic growth 0% considered
7.7.3 MSEDCL submits that presently and for future period also, it has sufficient
power availability. Considering this, MSEDCL has taken an optimistic view and
considered positive or zero growth for most of the categories.
7.8
Number of Consumer Projections for Control Period
7.8.1 MSEDCL submits that it has considered FY 2018-19 (March 19 figures) as the
base year for projection of number of consumers for the fourth control period
FY 2020-21 to FY 2024-25. Details of no. of consumers, connected load,
contract demand are provided in the Regulatory Formats. Based on the number
MSEDCL
January 20
124
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Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
of consumers for FY 2018-19 and the CAGR as shown in above tables,
MSEDCL has projected the number of consumers (excluding Bhiwandi
Franchisees) for various categories for the control period as shown in the
following tables:
Table 138: No. of Consumers Projections (HT category) for the Control Period
FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Projected Projected Projected Projected Projected
HT-I Industries
14,435
14,686
14,944
15,207
15,476
HT-II Commercial
3,244
3,324
3,406
3,490
3,576
HT III Railways
85
85
85
85
85
HT IV-PWW
992
995
998
1,001
1,004
HT V Agricultural
1,465
1,475
1,485
1,496
1,507
HT VI Bulk Supply (Housing Complex)
384
384
384
384
384
HT Temporary
17
17
17
17
17
HT-IX Public services
1,385
1,389
1,394
1,399
1,405
MSPGCL AUX SUPPLY
27
27
27
27
27
HT EV Charging Stations
3
3
3
3
3
Total -HT Consumers
22,037
22,385
22,743
23,109
23,484
Category
Table 139: No. of Consumers Projections (LT category) for the Control Period
Category
FY 20-21
Projected
LT Category
LT I -BPL
4,00,905
LT I Domestic
2,05,53,868
LT II Non Domestic
19,83,984
LT III PWW
55,230
LT IV Agriculture
43,46,007
LT V Powerloom
34,424
LT V Industrial General
3,19,725
LT VI Streetlight
99,945
LT VII- Temporary Connection
9,589
LT VIII Advertisement & Hoardings
3,175
LT IX – Crematoriums & Burial Grounds
228
LT X - Public services
1,16,717
LT Prepaid
10,334
Total LT Consumers
2,79,34,131
Total Consumers (Ex.Franchise)
2,79,56,168
MSEDCL
FY 21-22
Projected
FY 22-23
Projected
FY 23-24
Projected
FY 24-25
Projected
4,40,996
4,85,096
5,33,606
5,86,967
2,14,31,116 2,23,45,805 2,32,99,533 2,42,93,967
20,56,468
21,31,626
22,09,559
22,90,372
56,508
57,825
59,183
60,584
44,44,834
45,47,091
46,52,897
47,62,375
34,424
34,424
34,424
34,424
3,28,565
3,37,652
3,46,994
3,56,597
1,02,805
1,05,756
1,08,801
1,11,942
10,549
11,605
12,766
14,043
3,424
3,692
3,981
4,293
228
228
228
228
1,24,776
1,33,461
1,42,825
1,52,925
10,334
10,334
10,334
10,334
2,90,45,027 3,02,04,595 3,14,15,131 3,26,79,051
2,90,67,412 3,02,27,338 3,14,38,240 3,27,02,535
January 20
125
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
7.9
Approach for Connected Load/ Contract Demand Projection for Control
Period
7.9.1 MSEDCL submits that, similar to sales and no. of consumers’ projections,
MSEDCL has also adopted the historical trend method for projecting category
wise no. of consumers of MSEDCL. The Break-up of category wise load and
the 5 year & 3 year CAGR growth rates as well as Year on Year growth rates
for the period FY 2018-19 over FY 2013-14 is provided in the below table.
Wherever it is observed that the trend is unreasonable or unsustainable, the
growth factors have been corrected to arrive at more realistic projections.
7.9.2 Historical trend in Billing Demand in HT Category for MSEDCL (Excluding
Bhiwandi Franchisee) is given in following table.
Table 140: Historical Growth and CAGR connected load/Contract Demand (HT
Category)
kVA
5 Year 3 Year Y-oY
CAGR
CAGR Growth
4%
5%
8%
-2%
-3%
1%
-51%
-20%
-41%
6%
5%
2%
5%
-1%
1%
Category
FY 13-14
FY 14-15
FY 15-16
FY 16-17
FY 17-18
FY 18-19
HT-I Industries
HT-II Commercial
HT III Railways
HT IV-PWW
HT V Agricultural
HT VI Bulk Supply (Housing
Complex)
HT Temporary
HT-IX Public services
MSPGCL AUX SUPPLY
HT EV Charging Stations
67,01,808
6,18,413
6,05,769
2,15,651
3,35,227
67,89,400
6,57,341
6,16,026
2,63,199
3,29,307
69,14,477
6,06,933
31,746
2,56,739
4,05,702
71,97,960
5,71,287
4,678
2,82,643
4,49,457
74,36,493
5,48,172
28,100
2,87,390
4,26,420
80,29,222
5,52,821
16,453
2,94,493
4,29,748
51,231
2,025
2,09,576
1,787
-
53,112
2,167
2,34,456
45,140
-
53,512
1,377
2,47,570
50,901
-
53,240
1,059
2,61,479
1,05,477
-
50,610
1,666
2,55,960
80,504
-
53,235
2,528
2,56,986
80,156
1,004
1%
0%
4%
0%
0%
0%
1%
0%
5%
52%
0%
0%
Total -HT Consumers
87,41,487
89,90,148
85,68,957
89,27,280
91,15,315
97,16,646
2%
4%
7%
7.9.3 Historical trend in Load/Contract Demand in LT Category for MSEDCL
(Excluding Bhiwandi Franchisee) is given in following table.
MSEDCL
January 20
126
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 141: Historical Growth and CAGR connected load/Contract Demand (LT
Category)
Unit
LT-I (A): LT- BPL
LT-I (B) : LT-Residential( Other
than BPL)
LT-II : LT- Non Residential
0-20 KW
>20-<=50 KW
>50 KW
LT-III : LT-Public Water Works
0-20 KW
20-<=40 KW
> 40 KW
KW
46,757
35,281
26,872
21,246
18,548
40,894
KW
1,51,64,833
1,62,33,621
1,73,58,053
1,83,34,050
1,93,57,845
2,08,42,559
7%
6%
8%
KW
KVA
KVA
25,28,071
2,43,831
1,29,753
26,72,479
2,50,900
1,33,018
28,23,343
2,83,429
1,52,961
30,78,782
2,95,751
1,67,158
33,97,369
2,86,895
1,68,933
36,27,431
3,33,682
2,05,625
7%
6%
10%
9%
6%
10%
7%
16%
22%
KVA
KVA
KVA
79,871
15,332
11,518
80,662
15,577
12,363
88,211
18,733
12,681
89,632
1,13,720
14,521
94,161
20,053
14,179
95,257
24,025
29,855
4%
9%
21%
3%
9%
33%
1%
20%
111%
84,74,115
1,01,38,096
1,73,400
83,94,300
1,08,93,862
1,79,956
83,42,017
1,16,47,924
1,20,662
78,32,143
1,27,02,797
1,28,126
75,39,616
1,35,37,753
1,43,306
74,22,998
1,40,69,165
3,10,250
-3%
7%
0%
-4%
6%
0%
-2%
4%
0%
*** LT-AG-Unmetered (Pumpsets)
LT-AG Metered (Pumpsets)
LT-AG Metered (Others)
LT V(A) : LT Industry- Power
Looms
HP
HP
FY 13-14
FY 14-15
FY 15-16
FY 16-17
FY 17-18
FY 18-19
5 Year 3 Year Y-oY
CAGR
CAGR Growth
-3%
15%
120%
Category
0-20 KW (Upto & including 27 HP)
Above 20 KW (above 27 HP)
LT V(B) : LT Industry- General
KW
KVA
2,46,201
1,36,133
2,55,612
1,61,164
2,61,701
1,64,574
2,61,236
1,87,563
2,59,654
1,97,979
2,59,618
2,26,718
1%
11%
0%
11%
0%
15%
0-20 KW (Upto & including 27 HP)
Above 20 KW (above 27 HP)
Street Light (LT-VI)
Grampanchayat A, B & C Class
Municipal Council
Municipal corporation Area
Temporary Connection (LT-VII)
Temporary Connection
(Religious)
Temporary Connection (Other
Purposes)
LT-VIII : LT-Advertisements &
Hordings
LT-IX : LT-Crematorium and
Burial Grounds
LT X - Public services - Govt
0-20 KW
>20-50 kW
>50 kW
LT X - Public services - Other
0-20 KW
>20-50 kW
>50 kW
KW
KVA
19,38,252
13,39,134
20,13,535
13,63,675
20,58,722
14,01,915
20,40,403
14,33,786
19,56,730
13,58,172
20,14,870
16,55,184
1%
4%
-1%
6%
3%
22%
KW
KW
KW
2,19,008
1,38,014
2,30,403
1,42,547
1,92,475
1,85,695
2,04,649
1,82,535
1,96,357
1,94,167
1,96,980
2,02,475
-2%
8%
1%
3%
0%
4%
KW
2,015
2,113
3,447
3,333
2,841
4,276
16%
7%
50%
KW
13,889
12,374
11,701
12,477
15,589
26,168
14%
31%
68%
KW
5,350
5,357
5,700
6,285
6,477
6,619
4%
5%
2%
KW
786
841
1,225
1,446
1,609
1,748
17%
13%
9%
KW
KVA
KVA
56,318
4,620
5,982
1,14,349
16,248
16,530
15,601
1,896
1,665
1,19,200
22,955
20,552
21,207
2,586
2,820
1,33,989
26,091
23,763
26,577
3,317
2,773
1,51,854
28,161
28,256
41,610
4,352
3,756
1,60,581
33,636
34,810
0%
0%
0%
0%
0%
0%
0%
39%
32%
31%
0%
10%
14%
19%
57%
31%
35%
0%
6%
19%
23%
KW
KVA
KVA
7.10 CAGR considered for Connected Load/Contract Demand Projection
7.10.1 Similar to sales and no. of consumers, MSEDCL has used the CAGR
methodology for projecting the connected load, billing demand/contract
demand. Wherever it is observed that the trend is unreasonable or
unsustainable, the growth factors have been corrected to arrive at more realistic
projections.
7.10.2 Following tables shows the CAGR considered for projection of connected load,
billing demand/contract demand.
MSEDCL
January 20
127
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 142: CAGR Considered for Contract Demand Projections (HT Category)
Category
HT-IND 11 KV
HT-IND 22 KV
HT-IND 33 KV
HT-IND EHV
HT-COMM 11 KV
HT-COMM 22 KV
HT-COMM 33 KV
HT-COMM EHV
HT-III RAILWAYS/Metro/Mono
HT RAILWAY/METRO/MONO 11 KV
HT RAILWAY/METRO/MONO 22 KV
HT RAILWAY/METRO/MONO 33 KV
HT RAILWAY/METRO/MONO EHV
HT-PWW 11 KV
HT-PWW 22 KV
HT-PWW 33 KV
HT-PWW EHV
HT-AGRICULTURE 11 KV
HT-AGRICULTURE 22 KV
HT-AGRICULTURE 33 KV
HT-AGRICULTURE EHV
HT-GROUP HOUSING 11 KV
HT-GROUP HOUSING 22 KV
HT-GROUP HOUSING 33 KV
HT-GROUP HOUSING EHV
HT-PUBLIC SER.-GOVT 11 KV
HT-PUBLIC SER.-GOVT 22 KV
HT-PUBLIC SER.-GOVT 33 KV
HT-PUBLIC SER.-GOVT EHV
HT-PUBLIC SER.-OTHER 11 KV
HT-PUBLIC SER.-OTHER 22 KV
HT-PUBLIC SER.-OTHER 33 KV
HT-PUBLIC SER.-OTHER EHV
MSEDCL
January 20
CAGR
Considered
1%
1%
1%
1%
2%
2%
2%
2%
0%
2%
2%
5%
0%
3%
3%
2%
0%
0%
0%
5%
7%
1%
1%
1%
0%
5%
5%
5%
0%
0%
0%
2%
2%
128
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 143: CAGR Considered for Connected Load/Contract Demand Projections (LT
Category)
Category
LT-I (A): LT- BPL
LT-I (B) : LT-Residential( Other than BPL)
LT-II : LT- Non Residential
0-20 KW
0-200 Units
Above 200 units
>20-<=50 KW
>50 KW
LT-III : LT-Public Water Works
0-20 KW
20-<=40 KW
> 40 KW
LT-AG Metered (Pumpsets)
LT-AG Metered (Others)
LT Poultry/Hightech
LT V(A) : LT Industry- Power Looms
0-20 KW (Upto & including 27 HP)
Above 20 KW (above 27 HP)
LT V(B) : LT Industry- General
0-20 KW (Upto & including 27 HP)
Above 20 KW (above 27 HP)
LT X - Public services - Govt
0-20 KW
>20-50 kW
>50 kW
LT X - Public services - Other
0-20 KW
>20-50 kW
>50 kW
CAGR
Considered
1%
5%
4%
0%
0%
4%
4%
3%
5%
5%
2%
0%
5%
1%
5%
1%
4%
3%
3%
3%
0%
3%
3%
3%
7.11 Connected Load Projections for Control Period
7.11.1 MSEDCL submits that based on the connected load/ contract demand or
provisional billing demand for FY 2018-19 and the CAGRs as shown in above
tables, MSEDCL has projected the connected load/contract demand for various
categories (excluding Bhiwandi Franchisees) for the period as shown in the
following table:
MSEDCL
January 20
129
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 144: Connected load/contract demand Projections (HT category) for the Control
Period
Category
HT-I Industries
HT-II Commercial
HT III Railways
HT IV-PWW
HT V Agricultural
HT VI Bulk Supply (Housing
Complex)
HT Temporary
HT-IX Public services
MSPGCL AUX SUPPLY
HT EV Charging Stations
Total -HT Consumers
MSEDCL
FY 20-21
Projected
81,89,374
5,75,160
17,160
3,10,195
4,60,978
FY 21-22
Projected
82,70,653
5,86,665
17,527
3,18,381
4,78,078
FY 22-23
Projected
83,52,745
5,98,400
17,904
3,26,800
4,96,253
FY 23-24
Projected
84,35,658
6,10,370
18,290
3,35,457
5,15,571
kVA
FY 24-25
Projected
85,19,399
6,22,580
18,684
3,44,360
5,36,104
54,308
2,528
2,64,422
80,156
1,004
99,55,285
54,852
2,931
2,68,390
80,156
1,004
1,00,78,637
55,402
3,079
2,72,533
80,156
1,004
1,02,04,276
55,958
3,234
2,76,860
80,156
1,004
1,03,32,558
56,519
3,396
2,81,383
80,156
1,004
1,04,63,585
January 20
130
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 145: Connected load/contract demand Projections (LT category) for the Control
Period
KW
KW
FY 20-21
Projected
41,717
2,29,78,922
FY 21-22
Projected
42,135
2,41,27,869
FY 22-23
Projected
42,557
2,53,34,263
FY 23-24
Projected
42,983
2,66,00,977
FY 24-25
Projected
43,413
2,79,31,026
KVA
KVA
KVA
39,23,431
3,60,912
2,22,404
40,80,369
3,75,349
2,31,301
42,43,584
3,90,363
2,40,554
44,13,328
4,05,978
2,50,177
45,89,862
4,22,218
2,60,185
KVA
KVA
KVA
1,03,031
26,489
32,916
1,05,705
27,814
34,562
1,08,448
29,205
36,291
1,11,262
30,666
38,106
1,14,149
32,200
40,012
74,22,999
1,46,37,560
3,10,250
74,22,999
1,49,30,312
3,10,250
74,22,999
1,52,28,919
3,10,250
74,22,999
1,55,33,498
3,10,250
74,22,999
1,58,44,168
3,10,250
KVA
KVA
2,65,188
2,49,957
2,68,018
2,62,455
2,70,878
2,75,578
2,73,769
2,89,357
2,76,690
3,03,825
KVA
KVA
20,52,218
17,45,259
20,68,192
18,20,809
20,84,291
18,99,630
21,00,515
19,81,863
21,16,865
20,67,656
KW
KW
KW
KW
KW
2,00,623
2,10,624
32,308
6,838
1,855
2,02,176
2,16,787
33,924
6,989
1,948
2,03,742
2,23,130
35,621
7,144
2,046
2,05,320
2,29,659
37,403
7,302
2,149
2,06,910
2,36,379
39,274
7,464
2,257
KVA
KVA
KVA
43,316
4,531
3,910
44,616
4,667
4,028
45,955
4,808
4,149
47,334
4,953
4,274
48,755
5,102
4,403
KVA
KVA
KVA
1,67,164
35,015
36,237
1,72,179
36,066
37,325
1,77,345
37,148
38,445
1,82,666
38,263
39,599
1,88,146
39,411
40,787
Category
Unit
LT-I (A): LT- BPL
LT-I (B) : LT-Residential( Other than BPL)
LT-II : LT- Non Residential
0-20 KW
>20-<=50 KW
>50 KW
LT-III : LT-Public Water Works
0-20 KW
20-<=40 KW
> 40 KW
LT-IV: LT-Agriculture
*** LT-AG-Unmetered (Pumpsets)
LT-AG Metered (Pumpsets)
LT-AG Metered (Others)
LT V(A) : LT Industry- Power Looms
0-20 KW (Upto & including 27 HP)
Above 20 KW (above 27 HP)
LT V(B) : LT Industry- General
0-20 KW (Upto & including 27 HP)
Above 20 KW (above 27 HP)
Street Light (LT-VI)
Grampanchayat A, B & C Class Municipal Council
Municipal corporation Area
LT Temporary
LT-VIII : LT-Advertisements & Hordings
LT-IX : LT-Crematorium and Burial Grounds
LT X - Public services - Govt
0-20 KW
>20-50 kW
>50 kW
LT X - Public services - Other
0-20 KW
>20-50 kW
>50 kW
HP
HP
HP
7.11.2 For the purpose of Revenue Estimation, MSEDCL has considered the average
of no. of consumers, connected load, billing demand of the year end since the
consumers get added throughout the year.
7.12 Segregation of Wires and Supply Business for Control Period
7.12.1 MSEDCL submits that Regulation 71 of the MYT Regulations 2019 provides
that Aggregate Revenue Requirement of the Distribution Licensee shall be
apportioned between the Distribution Wires Business and Retail Supply
Business in accordance with the allocation matrix.
MSEDCL
January 20
131
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
7.12.2 The relevant extract of the regulation is reproduced below.
71 Separation of Accounts of Distribution Licensee
Every Distribution Licensee shall maintain separate accounting records for the
Distribution Wires Business and Retail Supply Business and shall prepare an
Allocation Statement to enable the Commission to determine the Tariff
separately for:
(a) Distribution Wires Business;
(b) Retail Supply of electricity:
Provided that in case complete accounting segregation has not been done
between the Distribution Wires Business and Retail Supply Business of the
Distribution Licensee, the Aggregate Revenue Requirement of the Distribution
Licensee shall be apportioned between the Distribution Wires Business and
Retail Supply Business in accordance with the following Allocation Matrix:
………
……….
Provided further that the above Allocation Matrix shall be applied for all or any
of the heads of expenditure and revenue, where actual accounting separation
has not been done between the Distribution Wires Business and Retail Supply
Business:
Provided also that the Commission may require the Distribution Licensee to file
separate Petitions for determination of Tariff for the Distribution Wires Business
and Retail Supply Business.
7.12.3 MSEDCL has segregated the expenses based on the allocation matrix as
provided in the MYT Regulations 2019 which is reproduced below for ready
reference.
Table 146: Segregation for Retail Supply and Wires Business Expenses
Particulars
Power Purchase Expenses
Inter-State Transmission Charges
MSEDCL
Distribution Wires
Business (%)
0%
0%
January 20
Retail Supply
Business (%)
100%
100%
132
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Particulars
Intra-State Transmission Charges
Operation & Maintenance Expenses
Depreciation
Interest on Long-term Loan Capital
Interest on Working Capital
Interest on Consumer Security Deposits
Provision for Bad & Doubtful Debts
Income Tax
Contribution to Contingency Reserves
Return on Equity
Non-Tariff Income
Distribution Wires
Business (%)
0%
65%
90%
90%
10%
10%
10%
90%
90%
90%
10%
Retail Supply
Business (%)
100%
35%
10%
10%
90%
90%
90%
10%
10%
10%
90%
7.13 Estimation of ARR for Control Period
7.13.1 MSEDCL submits that the components for the calculation of total expenses for
the Annual Revenue Requirement for the period FY 2020-21 to FY 2024-25 are
as follow:


Power Purchase Cost.
Intra State Transmission Charges


Operation & Maintenance Expenses.
Interest on Loan and Financial Charges.


Depreciation.
Interest on Working Capital.


Contribution to Contingency Reserves
Provision for Bad Debts.

Income Tax

Return on Equity.
7.14 Power Purchases Expenses for Control Period
7.14.1 MSEDCL has following primary sources of firm power viz.


Maharashtra State Power Generation Company Limited (MSPGCL)
Purchase from Central Generating Stations
MSEDCL
January 20
133
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition



JSW (RATNAGIRI)
Mundra UMPP CGPL
Adani Power Ltd.


Rattan India (Previously India Bulls Ltd.)
Emco Power Ltd. etc.
7.14.2 In addition to the above sources, MSEDCL buys power from Sardar Sarovar
Project (SSP) and Pench Hydro project, renewable energy sources including
co-generation, wind and solar. MSEDCL may also purchase the power from the
Power trading Companies, Power exchanges in case of shortfall from regular
sources or increase in demand depending on the availability.
7.15 Assumptions for power purchase for Control Period
7.15.1 MSEDCL submits that it procures power from different sources on Merit Order
Despatch Principle for optimum utilization of the sources at least cost. For
projection of availability, MSEDCL has considered the entire power available
from all the tied-up sources during this period to meet the demand. Considering
the capacity available and the demand projection, no power procurement from
Traders or power exchange is projected for the period FY 2020-21 to FY 202425.
7.15.2 Further, a realistic approach has been adopted in projecting the power
purchase availability based on the actual availability and considering upcoming
projects in the period FY 2020-21 to FY 2024-25.
7.15.3 For estimating the power purchase cost, merit order despatch principles have
been considered. As per the provisions of MYT Regulations 2019, MSEDCL
has projected the monthly power requirement using the monthly sales
projections and applying monthly MOD. While full fixed (capacity) charges have
been considered for all the plants, the variable charges corresponding to the
cheaper sources of power have been considered, whereas no variable charges
have been considered in respect of energy not scheduled for power purchase
(according to the merit order dispatch principles).
7.15.4 For power procurement from competitive bidding route, the tariff has been
MSEDCL
January 20
134
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
considered based on the rate quoted as per the terms of the PPA with the
escalation based on the CERC rates, wherever applicable.
7.16 Assumptions for source wise Power Purchase Projection for Control
Period
A) IPPsMSEDCL submits that it procure power from 5 Independent Power
Producers (IPPs) though 9 long term Power Purchase Agreements (PPAs)
whose tariff is determined through competitive bidding process. For the
projection of variable charges for the MYT Control Period, CAGR of last four
financial years with that of FY 2018-19 as a base has been considered.
For the computation of Capacity charges, MSEDCL has projected the
escalable component of Capacity Charges considering CAGR of last four
financial years with that of FY 2018-19 as a base. Non-escalable component
of Capacity Charges has been considered as quoted in the PPA of
respective IPPs.
B) MSPGCL
Variable Charges
MSEDCL submits that it has considered the operational parameters as well
as variable charges for MSPGCL Stations as per the MYT Petition filed by
MSPGCL in Case No. 296 of 2019. MSPGCL in its Petition has made
following submissions:


Mine specific prices will be applied to mines falling in Ballarpur, Marri,
Nagpur, Umrer and Warn regions (WCL notice dated Nov 1, 2019)
Likely impact on such coal cost is expected to be -Rs 450/tonne.

The overall impact is an increase of around 6-7 %in price of coal.
Therefore, MSEDCL has considered the revised operational parameters as
well as variable charges as per the revised Petition filed by MSPGCL on
10th December 2019.
Capacity Charges
MSEDCL submits that the projection of capacity charges for the Control
MSEDCL
January 20
135
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Period, MSEDCL has considered AFC as claimed by MSPGCL in their
petition. However, following deductions have been considered in AFC:
1. AFC towards retiring units i.e. Bhusawal 03 & Nashik 03 have not been
considered as the said units are set to retire in May 2022 and April 2020
respectively. Furthermore, no power purchase has been considered
from the said units.
2. Impact of additional capitalization against FGD installation in the form of
interest on Long Term Loan, Depreciation & RoE for Khaparkheda 01 to
04 and Koradi 06, 07 has not been considered.
3. Capacity charges for Parli 04 & 05 has not been considered as the same
were under RSD and decommissioned by MSPGCL from 30/11/2019.
C) NTPCMSEDCL submits that the variable charges for existing NTPC stations have
been projected based on the CAGR of actual variable rate for last 4 financial
years. For new NTPC stations like Lara, Gadarwara, Solapur Unit – II &
Khargone, variable charges have been adopted as submitted by NTPC in
its tariff petition with CERC and the same has been projected for FY 202021 to FY 2024-25 considering same CAGR of NTPC Solapur – I.
Projection of Capacity Charges for MYT Petition for 4th Control period from
FY 2020-21 to FY 2024-25 is worked out based on CAGR considering the
capacity charges of last 4 Financial Years on Normative basis.
D) Power Procurement from Renewable Energy Sources
MSEDCL submits that it has projected the generation from solar and nonsolar energy sources based on estimated capacity addition and expected
CUFs to meet the RPO Targets set by Hon’ble Commission. The following
table provides the details of expected capacity addition during the Control
Period.
MSEDCL
January 20
136
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
MW
Particulars
FY 19-20
FY 20-21
FY 21-22
FY 22-23
FY 23-24
FY 24-25
Capacity Addition
2527
974
3134
1684
1000
1400
Wind EPA expiring
562
282
214
137
137
569
1965
692
2920
1547
863
831
Net Capacity Addition
MSEDCL submits that the Hon’ble Commission has notified MERC
(Renewable Purchase Obligation, its Compliance and Implementation of
Renewable Energy Certificate Framework) Regulations, 2019. As per the
said Regulations, the RPO targets have been revised drastically as per the
table given below:
Year
2020-21
2021-22
2022-23
2023-24
2024-25
Quantum of Purchase (in %) from Renewable
Energy Sources (in terms of energy
equivalent in kWh)
Solar
Non-Solar
Total
4.50%
11.50%
16.00%
6.00%
11.50%
17.50%
8.00%
11.50%
19.50%
10.50%
11.50%
22.00%
13.50%
11.50%
25.00%
MSEDCL also submits that the Hon’ble Commission in the MERC RPO
Regulations 2019 has stated that total consumption of electricity for
specifying RPO percentage shall exclude the electricity procured from
Hydro power. Clause 3.1 of the said regulations states that,
“These Regulations shall apply in all cases where the State Commission is
to promote Co-generation from renewable sources and generation of
electricity from renewable sources and is to specify a minimum percentage
for procurement of energy generated from such sources on the basis of total
consumption of electricity within the area of a Distribution Licensee.
Provided that total consumption of electricity shall exclude the consumption
met from Hydro power.”
MSEDCL
January 20
137
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Considering the provisions of MERC RPO Regulations 2019, MSEDCL is
expected to fulfil renewable purchase obligations (Both Solar as well as
Non-Solar) considering the total consumption of electricity after excluding
the consumption met from Hydro Power.
Source wise power purchase from renewable energy sources/RECs are
summarised in following table.
MUs
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25
Source
Projected Projected Projected Projected Projected
Bagasse/Biomass
5,082
5,259
5,324
5,324
5,324
Wiind
8,202
9,050
10,128
10,128
10,128
Non Solar
13,284
14,309
15,452
15,452
15,451
Solar
6,988
9,855
14,699
18,430
21,051
Total
20,272
24,164
30,151
33,882
36,503
E) Inter State Transmission Charges
The PGCIL charges have been increasing considerably in last 4-5 years
after implementation of POC mechanism. MSEDCL has projected the
PGCIL charges for FY 20-21 to FY 24-25 considering a growth of 5% per
annum over the estimated charges for FY 19-20.
F) Power Purchase from Short Term Markets
MSEDCL submits that during the higher demand or shortage from regular
sources due to various reasons including break downs, fuel shortage etc. ,
MSEDCL may require to purchase power from exchanges and through short
term power purchase tenders throughout the year. Hence it is submitted
that, considering the volatile nature of short term power market and
uncertainty in supply of power from long term sources on account of various
reasons, MSEDCL requests the Hon’ble Commission to accord in principle
approval for procurement of power on DEEP e-bidding portal/ power
exchange based on the projected average power purchase rate. MSEDCL
also requests the Hon’ble Commission to revise the ceiling rate for
procurement of power on DEEP e-bidding portal/ power exchange
considering the projected power purchase rate during the Control Period.
MSEDCL
January 20
138
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
7.16.1 Following tables provide the summary of source wise power purchase quantum
and cost for the Period FY 20-21 to FY 24-25.
Table 147: Source wise Power Purchase quantum and cost for FY 2020-21 to FY 202223
Particulars
MSPGCL
NTPC
NPCIL
SSP
Pench
Dodson
JSW
CGPL (Mundra UMPP)
Adani Power
EMCO Power
Rattan India
Renewable
PGCIL Charges
Total Power Purchase
Quantum
MU
55,307.12
25,598.81
4,884.58
1,209.94
136.50
115.72
1,913.18
5,157.89
20,937.22
1,355.17
20,272.00
1,36,888.13
FY 2020-21
Cost
Rs. Cr.
24,806.74
9,815.06
1,396.92
248.05
27.98
17.78
692.67
1,515.68
7,869.57
613.16
692.48
9,862.29
3,676.18
61,234.57
Rate
Quantum
Rs/Unit
MU
4.49
55,262.53
3.83
26,667.17
2.86
4,884.58
2.05
1,209.94
2.05
136.50
1.54
115.72
3.62
1,913.18
2.94
5,157.89
3.76
20,784.14
4.52
1,355.17
4.86
24,164.00
4.47 1,41,650.83
FY 2021-22
Cost
Rs. Cr.
25,654.11
10,389.47
1,430.57
248.06
27.98
17.92
731.78
1,568.26
7,962.99
650.26
692.48
10,660.92
3,859.99
63,894.79
Rate
Quantum
Rs/Unit
MU
4.64
55,144.56
3.90
26,742.79
2.93
4,884.58
2.05
1,209.94
2.05
136.50
1.55
115.72
3.82
810.03
3.04
5,157.89
3.83
20,937.22
4.80
1,355.17
4.41
30,151.00
4.51 1,46,645.40
FY 2022-23
Cost
Rs. Cr.
26,397.72
10,611.73
1,465.12
248.06
27.98
18.11
417.68
1,623.54
8,254.69
679.87
692.48
12,965.83
4,052.99
67,455.81
Rate
Rs/Unit
4.79
3.97
3.00
2.05
2.05
1.57
5.16
3.15
3.94
5.02
4.30
4.60
EMCO rates will reduce after shifting connectivity from CTU to STU.
Table 148: Source wise Power Purchase quantum and cost for FY 2023-24 to FY 202425
Particulars
MSPGCL
NTPC
NPCIL
SSP
Pench
Dodson
JSW
CGPL (Mundra UMPP)
Adani Power
EMCO Power
Rattan India
Renewable
PGCIL Charges
Total Power Purchase
Quantum
MU
55,908.76
27,610.48
4,897.96
1,213.26
136.87
116.04
736.28
5,172.02
20,917.77
1,358.88
33,882.00
1,51,950.32
FY 2023-24
Cost
Rs. Cr.
27,636.92
11,094.73
1,504.72
248.75
28.06
27.68
410.60
1,684.98
8,265.39
712.34
692.48
14,355.53
4,255.64
70,917.81
Rate
Rs/Unit
4.94
4.02
3.07
2.05
2.05
2.39
5.58
3.26
3.95
5.24
4.24
4.67
Quantum
MU
57,779.78
28,847.51
4,884.58
1,209.94
136.50
115.72
413.29
5,157.89
20,937.22
1,355.17
142.19
36,593.00
1,57,572.78
FY 2024-25
Cost
Rs. Cr.
28,717.14
11,759.78
1,537.05
248.07
27.98
32.93
334.63
1,742.82
8,050.30
744.72
748.55
15,405.57
4,468.42
73,817.97
Rate
Rs/Unit
4.97
4.08
3.15
2.05
2.05
2.85
8.10
3.38
3.84
5.50
4.21
4.68
EMCO rates will reduce after shifting connectivity from CTU to STU.
7.16.2 MSEDCL requests the Hon’ble Commission to allow the power purchase as
shown in the tables above.
MSEDCL
January 20
139
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
7.17 Intra State Transmission Charges
7.17.1 MSEDCL submits that Mumbai Utilities are already benefitted due to present
transmission infrastructure. N-2 mechanism is basically to strengthen the
network from reliability point of view. This will enhance the power supply & will
only be benefitting to Mumbai Utilities. Therefore the transmission charges
considered for strengthening of Infrastructure for Mumbai Utilities need to be
recovered from Mumbai Consumers only and should not be burdened on
MSEDCL.
7.17.2 MSEDCL also submits that the STU has filed the Petition for determination of
Intra-State Transmission Tariff for the MYT Control Period from FY 2020-21 to
FY 2024-25. As per the said Petition MSEDCL will have following share in the
Total Transmission System Cost.
Rs. Crs
Particulars
MSEDCL
FY 20-21
10,293.78
FY 21-22
6,352.56
FY 22-23
6,715,36
FY 23-24
7,344.34
FY 24-25
7,999.76
7.17.3 In the said Petition, a steep rise in the transmission tariff from existing Rs. 0.30
per unit for FY 19-20 to Rs. 0.77 per unit in FY 20-21 is proposed. Further, the
transmission charges for the remaining years of the Control Period are almost
more than 50% higher than the existing transmission charges.
7.17.4 However, these charges seem to be unrealistic and on very higher side.
MSEDCL while analysing the MSETCL Petition observed following:
- Historically, Hon’ble Commission has been disallowing the income tax,
MSETCL has claimed Income Tax of about Rs. 957.09 Crs
- Contingency reserves shall be allowed only after investing the same in
Securities as per provisions of MYT Regulations
- Return on equity is calculated at 15.5% whereas in MTR it was allowed at
7.50%
- The impact of disallowed capitalisation from FY 2010-11 to FY 2016-17 and
the revenue gap till previous gap claimed by MSETCL is subject to prudence
check of Hon’ble Commission;
- Due to this, the corresponding carrying cost will also get reduced.
MSEDCL
January 20
140
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
7.17.5 MSEDCL further submits that there is a wide difference in the historical trend in
Intra State Transmission Charges and Petition filed by the STU. The historical
trend in the Intra State Transmission Charges for the last 4 years is shown in
following table.
Particulars
FY 15-16
Intra State
Transmission
Charges (Rs. Crore)
FY 17-18
Actual
FY 18-19
Actual
3 Yr CAGR
Actual
FY 16-17
Actual
4,070
3,793
4,812.17
4,775.50
5.47%
7.17.6 However, as directed by Hon’ble Commission, MSEDCL has considered the
MSEDCL share in the Total transmission System Cost (TTSC) as submitted by
the State Transmission Utility as summarized in following table.
Table 149: Intra State Transmission charges for Control Period
Particulars
Intra State Transmission Charges
FY 2020-21
Projected
10,293.78
FY 2021-22
Projected
6,352.56
FY 2022-23
Projected
6,715.36
FY 2023-24
Projected
7,344.34
Rs. Cr.
FY 2024-25
Projected
7,999.76
7.17.7 MSEDCL requests the Hon’ble Commission to allow the Intra State
Transmission charges as may be approved in the InSTS Order after prudence
check..
7.18 Distribution Loss for the Control Period
7.18.1 MSEDCL submits that it has been achieving a significant reduction in
distribution losses and these efforts shall be continued and will further be
enhanced. However, the loss reduction is a slow process and as the loss levels
come down further reduction in loss becomes difficult. MSEDCL has considered
the distribution losses (excl. EHV) for the Control Period FY 2020-21 to FY
2024-25 considering an year on year reduction of 0.25% from the approved
Distribution losses of FY 2019-20 i.e. 13.26%.
MSEDCL
January 20
141
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 150: Proposed Distribution Loss for the Control Period
Particulars
Distribution Losses
(Excluding EHV)
FY 2020-21
Projected
FY 2021-22
Projected
FY 2022-23
Projected
FY 2023-24
Projected
%
FY 2024-25
Projected
13.01%
12.76%
12.51%
12.26%
12.01%
7.18.2 MSEDCL requests the Hon’ble Commission to approve the Distribution Loss
(EHV Less) for the Control Period as shown in above table.
7.19 Energy Balance for Control Period
7.19.1 MSEDCL submits that the quantum of sales in MUs shown in Paragraph 7.4
represent the sales of MSEDCL excluding the sales in the area served by
Distribution Franchisees. As per the methodology adopted by Hon’ble
Commission for calculating energy balance of MSEDCL as a whole, the sale to
the consumers in the Distribution Franchisee area has also been considered.
Therefore, total energy sale for the Control Period is computed as below:
Table 151: Total Energy Sales for MSEDCL for FY 2020-21 to FY 2024-25
Particulars
Energy Sales by MSEDCL
Add: Category wise sales in DF area
(Bhiwandi)
Add: OA Sales (Conventional)
Add: OA Sales (Non-Conventional)
Total Energy Sales
FY 2020-21
Projected
1,11,240.53
FY 2021-22
Projected
1,15,476.39
FY 2022-23
Projected
1,19,954.32
FY 2023-24
Projected
1,24,694.41
MUs
FY 2024-25
Projected
1,29,719.00
3,269.49
3,407.40
3,551.80
3,703.03
3,861.50
3,983.40
859.40
1,19,352.82
3,983.40
859.40
1,23,726.59
3,983.40
859.40
1,28,348.92
3,983.40
859.40
1,33,240.24
3,983.40
859.40
1,38,423.29
7.19.2 The Energy Balance for FY 2020-21 to FY 2022-23 is summarised in following
table.
MSEDCL
January 20
142
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 152: Energy Balance for FY 2020-21 to FY 2022-23
Sr. No. Particulars
FY 2020-21 FY 2021-22 FY 2022-23
Projected
Projected
Projected
73,257.14
75,873.96
78,640.63
30,637.19
31,832.18
33,078.18
1,03,894.33 1,07,706.14 1,11,718.81
859.40
859.40
859.40
3,983.40
3,983.40
3,983.40
Calculation
UoM
LT Sales (Including D.F)
HT Sales excluding EHV level sales (Including D.F)
HT/LTIP Credit Sales and HT/LT Offset Export Solar units
Total Sales including D.F (Excluding EHV Sales)
OA Sales (Renewables)
OA Sales (Conventional)
Retail Energy Sale to Consumers (Excluding EHV
Sales)
a
b
c
d=a+b+c
e
f
MU
MU
MU
MU
MU
MU
A=d+e+f
MU
1,08,737.12
1,12,548.93
1,16,561.61
B=g+h
g
h
i
MU
MU
MU
%
1,36,888.13
98,545.25
38,342.88
3.07%
1,41,650.83
1,02,239.58
39,411.25
3.07%
1,46,645.40
1,07,158.54
39,486.86
3.07%
j=h*(1-i)
MU
37,166.08
38,201.66
38,274.96
6
7.1
Total Power Purchase
Power Purchase Quantum from Intra-State sources
Power Purchase Quantum from Inter-State sources
Inter-State Losses
Power Purchase Quantum from Inter-State sources at MS
Periphery
Add: FBSM
Power Quantum handled at Maharashtra Periphery
k
l=g+j+k
MU
MU
1,35,711.33
1,40,441.24
1,45,433.49
7.2
7.3
7
8
9
Infirm Non-PPA Wind Power
Input for OA Consumption
Total Power Purchase Quantum Handled
Surplus Power Traded
Energy Requirement at G<>T Periphery
m
n=f/(1-6%)
o=l+m+n-w
p
q=o-p
MU
MU
MU
MU
MU
914.25
4,237.66
1,40,289.97
1,40,289.97
914.25
4,237.66
1,45,019.88
1,45,019.88
914.25
4,237.66
1,50,012.13
1,50,012.13
8.1
8
9
10
11
13
Intra-State Transmission Loss
Intra-State Transmission Loss
Net Energy requirement at T<>D Periphery
EHV Sales
Net Energy Available for Sale at 33kV
Energy injected and drawn at 33kV
Total Energy Available for Sale at 33kV (Metered
Energy at EHV and 33 kV Input)
r
s=q*r
t=q-s
u
v=t-u
w
%
MU
MU
MU
MU
MU
3.74%
5,248.75
1,35,041.22
10,615.69
1,24,425.53
573.27
3.73%
5,405.59
1,39,614.29
11,177.65
1,28,436.64
573.27
3.71%
5,570.41
1,44,441.72
11,787.31
1,32,654.41
573.27
C=v+w
MU
1,24,998.80
1,29,009.91
1,33,227.68
D=C-A
E=D/C
MU
%
16,261.68
13.01%
16,460.98
12.76%
16,666.07
12.51%
1.1
1.2
1.3
1
2.1
2.2
2
3
3.1
3.2
4
5
14
15.1
15
Distribution Loss (Excl. EHV Sales)
Distribution Loss (Excl. EHV Sales)
7.19.3 The Energy Balance for FY 2023-24 to FY 2024-25 is summarised in following
table.
MSEDCL
January 20
143
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 153: Energy Balance for FY 2023-24 to FY 2024-25
Sr. No. Particulars
MU
MU
MU
MU
MU
MU
FY 2023-24
Projected
81,568.68
34,377.83
1,15,946.51
859.40
3,983.40
FY 2024-25
Projected
84,670.74
35,733.94
1,20,404.69
859.40
3,983.40
A=d+e+f
MU
1,20,789.31
1,25,247.48
B=g+h
g
h
i
MU
MU
MU
%
1,51,950.32
1,11,560.85
40,389.47
3.07%
1,57,572.78
1,15,981.20
41,591.58
3.07%
j=h*(1-i)
MU
39,149.86
40,315.08
k
l=g+j+k
MU
MU
1,50,710.71
1,56,296.28
m
n=f/(1-6%)
o=l+m+n-w
p
q=o-p
MU
MU
MU
MU
MU
914.25
4,237.66
1,55,289.35
1,55,289.35
914.25
4,237.66
1,60,874.91
1,60,874.91
r
s=q*r
t=q-s
u
v=t-u
w
%
MU
MU
MU
MU
MU
3.70%
5,745.20
1,49,544.15
12,450.93
1,37,093.21
573.27
3.69%
5,930.38
1,54,944.54
13,175.81
1,41,768.73
573.27
C=v+w
MU
1,37,666.49
1,42,342.00
D=C-A
E=D/C
MU
%
16,877.18
12.26%
17,094.52
12.01%
Calculation
UoM
LT Sales (Including D.F)
HT Sales excluding EHV level sales (Including D.F)
HT/LTIP Credit Sales and HT/LT Offset Export Solar units
Total Sales including D.F (Excluding EHV Sales)
OA Sales (Renewables)
OA Sales (Conventional)
Retail Energy Sale to Consumers (Excluding EHV
Sales)
a
b
c
d=a+b+c
e
f
6
7.1
Total Power Purchase
Power Purchase Quantum from Intra-State sources
Power Purchase Quantum from Inter-State sources
Inter-State Losses
Power Purchase Quantum from Inter-State sources at MS
Periphery
Add: FBSM
Power Quantum handled at Maharashtra Periphery
7.2
7.3
7
8
9
Infirm Non-PPA Wind Power
Input for OA Consumption
Total Power Purchase Quantum Handled
Surplus Power Traded
Energy Requirement at G<>T Periphery
8.1
8
9
10
11
13
Intra-State Transmission Loss
Intra-State Transmission Loss
Net Energy requirement at T<>D Periphery
EHV Sales
Net Energy Available for Sale at 33kV
Energy injected and drawn at 33kV
Total Energy Available for Sale at 33kV (Metered
Energy at EHV and 33 kV Input)
1.1
1.2
1.3
1
2.1
2.2
2
3
3.1
3.2
4
5
14
15.1
15
Distribution Loss (Excl. EHV Sales)
Distribution Loss (Excl. EHV Sales)
7.19.4 MSEDCL requests the Hon’ble Commission to approve the Energy Balance for
the period FY 2020-21 to FY 2024-25 as submitted by MSEDCL in above
tables.
7.20 Operation & Maintenance Expenses for Control Period
7.20.1 MSEDCL submits that Regulation 75 and 84 of the MERC (Multi Year Tariff)
Regulations, 2019 provides for the procedure/ methodology to calculate O&M
Expenses for Distribution Wires Business and Retail Supply of electricity
respectively.
MSEDCL
January 20
144
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
7.20.2 MSEDCL further submits that MYT Regulations 2019 also provides that if the
no. of consumers of Distribution Licensee are increased by more than 2%
annually over the last 3 years, efficiency factor shall be considered as zero.
Accordingly, considering the escalation factor without reducing efficiency factor,
MSEDCL has computed the normative O&M Expenses for the Control Period.
7.20.3 The base year Normative O&M Expenses have been computed by escalating
twice with an escalation rate.
7.20.4 The Normative O&M Expenses for the Control Period are summarized in
following table.
Table 154: Normative O&M Expenses for the Control Period
Particulars
O&M Expenditure (Wires Business)
O&M Expenditure (Supply Business)
Total O&M Expenditure
Rs. Cr.
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25
Projected Projected Projected Projected Projected
4,536.29
4,710.13
4,890.63
5,078.04
5,272.64
2,442.62
2,536.22
2,633.42
2,734.33
2,839.12
6,978.91
7,246.35
7,524.04
7,812.38
8,111.76
7.20.5 MSEDCL requests the Hon’ble Commission to allow the O&M Expenses as
shown in above table.
7.21 Opex for the Control Period
7.21.1 MSEDCL submits that the Regulation 75.7 and 84.7 of the MYT Regulations
2019 provide that the Licensee may undertake Opex schemes for wires and
supply business respectively for system automation, new technology and IT
implementation, etc. and such expenses may be allowed over and above
normative O&M Expenses.
7.21.2 The said Regulations also provide that the Licensee shall submit the detailed
justification, cost benefit analysis of such schemes as against capex schemes,
and savings in O&M expenses, if any. MSEDCL submits that the details of Opex
Schemes are provided in Chapter 17.
7.21.3 The revenue expenditure against the Opex Schemes is summarised in
following table.
MSEDCL
January 20
145
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 155: Opex Schemes for the Control Period
Particulars
Opex Schemes (Wire Business)
Substation Monitoring System (SMS)
SMS Services
MSEDCL Cloud Project
Annual Technical Support of SAP/HANA/Oracle Software
Licences
Vehicle Tracking System
Sub-Total
Opex Schemes (Supply Business)
Customer Care Center
SMS Services
RF-DCU (Expression of Interest & Tender)
Go Green Initiative
MSEDCL Cloud Project
Annual Technical Support of SAP/HANA/Oracle Software
Licences
Vehicle Tracking System
Sub-Total
Total
FY 2020-21
Projected
FY 2021-22
Projected
FY 2022-23
Projected
FY 2023-24
Projected
Rs. Cr.
FY 2024-25
Projected
69.53
2.72
8.32
69.53
2.72
8.32
69.53
2.72
8.32
69.53
2.72
8.32
69.53
2.72
8.32
5.94
5.94
5.94
5.94
5.94
0.53
87.03
0.53
87.03
0.53
87.03
0.53
87.03
0.53
87.03
6.60
2.72
4.80
1.28
8.32
6.60
2.72
4.80
1.47
8.32
6.60
2.72
4.80
1.69
8.32
6.60
2.72
4.80
1.95
8.32
6.60
2.72
4.80
2.24
8.32
5.94
5.94
5.94
5.94
5.94
0.53
30.18
117.21
0.53
30.37
117.40
0.53
30.59
117.62
0.53
30.85
117.88
0.53
31.14
118.17
7.21.4 MSEDCL requests the Hon’ble Commission to allow the Opex as shown in
above table.
7.22 Capex and Capitalisation for Control Period
7.22.1 MSEDCL submits that the projected capitalisation of MSEDCL from FY 202021 to FY 2024-25 is summarized below. The scheme wise details of capital
expenditure and capitalisation for the Control Period is shown in a separate
forms of the Regulatory Formats.
Table 156: Capital expenditure and capitalisation for the Control Period
Particulars
Capital Expenditure
Capitalisation
Rs. Cr.
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25
Projected
Projected
Projected
Projected
Projected
6,687.24
2,511.67
1,762.74
1,807.60
1,886.44
6,840.31
5,068.20
2,038.96
1,808.60
1,877.44
7.22.2 MSEDCL requests the Hon’ble Commission to allow the capitalisation as shown
in above table.
MSEDCL
January 20
146
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
7.23 Funding Pattern of the Capitalisation for Control Period
7.23.1 MSEDCL submits that it has been the practise of Hon’ble Commission to
consider the consumer contribution, grants etc. in proportion the funding pattern
of capital expenditure. In line with the same methodology, MSEDCL has
considered the funding pattern for the capitalization projected, in proportion to
the funding pattern of projected capital Expenditure. MSEDCL further submits
that if the equity portion is more than 30% of the capitalisation to be funded, it
has restricted the equity at 30% and balance amount is considered as
normative loan as per the provisions of the Regulation 27 of the MYT
Regulations 2019. The funding pattern of the proposed capitalisation is
presented in the following table:
Table 157: Funding Pattern of the Capitalisation for the Control Period
S. No.
1
2
3
4
5
6
7
8
9
10
11
12
Particulars
Funding pattern of capital expenditure
Total Capital Expenditure
Consumer Contribution
Grants received during the year
Equity
Debt
Funding pattern of capitalisation
Total Capitalisation
Consumer Contribution
Grants received during the year
Balance to be funded
Equity amount
Debt amount
Equity (%)
Debt (%)
FY 2020-21
Projected
FY 2021-22
Projected
FY 2022-23
Projected
FY 2023-24
Projected
Rs. Cr.
FY 2024-25
Projected
6,687.24
100.00
2,560.26
499.31
3,527.67
2,511.67
100.00
577.98
499.31
1,334.38
1,762.74
100.00
606.39
400.00
656.35
1,807.60
100.00
636.21
400.00
671.39
1,886.44
100.00
667.51
400.00
718.93
6,840.31
102.29
2,618.86
4,119.16
499.31
3,619.85
12%
88%
5,068.20
201.79
1,166.29
3,700.13
499.31
3,200.82
13%
87%
2,038.96
115.67
701.41
1,221.88
366.56
855.31
30%
70%
1,808.60
100.06
636.56
1,071.99
321.60
750.39
30%
70%
1,877.44
99.52
664.33
1,113.59
334.08
779.51
30%
70%
7.23.2 MSEDCL requests the Hon’ble Commission to approve the funding pattern as
submitted in above table.
7.24 Depreciation for Control Period
7.24.1 MSEDCL submits that Regulation 28 of the MERC (MYT) Regulations, 2019
provides for recovery of Depreciation. As per Regulation 28.1(b) of MYT
Regulation, the individual asset is to be depreciated to the extent of 70% on the
straight line basis as per the rates specified in the Regulations and remaining
depreciable value as on 31st March of the year closing shall be spread over the
balance Useful Life of the asset. The relevant extract is reproduced below:
MSEDCL
January 20
147
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
(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 Licensee or MSLDC shall ensure
that once the individual asset is depreciated to the extent of seventy percent,
remaining depreciable value as on 31st March of the year closing shall be
spread over the balance Useful Life of the asset including the Extended Life,
as provided in this Regulation:
7.24.2 MSEDCL submits that depreciation has been calculated taking into
consideration the opening balance of assets in the beginning of the year and
the projected capitalization. Hon’ble Commission has been applying the
weighted average rate of depreciation on opening GFA. Considering the actual
weighted average rate of depreciation for FY 18-19, MSEDCL has computed
the depreciation which is shown in the following table:
Table 158: Depreciation for the Control Period
Particulars
Opening GFA
Depreciation
% Depreciation
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
Projected Projected Projected Projected
55,675.32
59,904.48
63,719.61
65,061.48
2,756.88
2,966.30
3,155.21
3,221.66
4.95%
4.95%
4.95%
4.95%
Rs. Cr.
FY 2024-25
Projected
66,258.47
3,280.93
4.95%
7.24.3 MSEDCL requests the Hon’ble Commission to approve the depreciation as
submitted in above table.
7.25 Interest on Long Term Loan for Control Period
7.25.1 MSEDCL submits that the interest expenditure on account of long-term loans
depends on the outstanding loan, repayments, and prevailing interest rates on
the outstanding loans. Further, the projected capital expenditure and the
funding of the same also have a major bearing on the long-term interest
expenditure.
7.25.2 Regulation 30.3 of the MYT Regulations 2019 states that
MSEDCL
January 20
148
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
30.3 The loan repayment during each year of the Control Period from FY 202021 to FY 2024-25 shall be deemed to be equal to the depreciation allowed for
that year.
7.25.3 Considering the normative opening loan, normative loan addition during the
year and loan repayment equal to depreciation and the weighted average
interest rate of actual loan portfolio for FY 18-19 as shown in Table 66,
MSEDCL has computed the interest expenses on normative basis for the
Control Period as summarized in table below:
Table 159: Interest Expenses on Long Term Loan for the Control Period
Particulars
Normative Outstanding Loan at
beginning of the year
Loan Drawal
Loan Repayment
Normative Outstanding Loan at the
end of the year
Interest Rate
Gross Interest Expenses
FY 2020-21
Projected
FY 2021-22
Projected
FY 2022-23
Projected
FY 2023-24
Projected
Rs. Cr.
FY 2024-25
Projected
13,263.75
14,126.71
14,361.24
12,061.34
9,590.07
3,619.85
2,756.88
3,200.82
2,966.30
855.31
3,155.21
750.39
3,221.66
779.51
3,280.93
14,126.71
14,361.24
12,061.34
9,590.07
7,088.66
10.28%
1,407.20
10.28%
1,463.59
10.28%
1,357.48
10.28%
1,112.36
10.28%
856.88
7.25.4 MSEDCL requests the Hon’ble Commission to approve the interest expenses
as submitted in above table.
7.26 Interest on Working Capital for Control Period
7.26.1 MSEDCL submits that Regulation 32 of the MYT Regulations 2019 provides for
Interest on Working Capital. Regulation 32.3 (a) of the said Regulations
provides for the norms of computation of Working Capital for Distribution Wires
Business.
7.26.2 MSEDCL further submits that Regulation 32.3 (b) of the said Regulations
provides that the normative rate of interest on working capital shall be equal to
Base Rate as on the date on which the Petition for determination of Tariff is
filed, plus 150 basis points. The relevant extract of the said Regulations is
reproduced below:
(b) Rate of interest on working capital shall be on normative basis and shall be
MSEDCL
January 20
149
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
equal to the Base Rate as on the date on which the Petition for determination
of Tariff is filed, plus 150 basis points:
7.26.3 Accordingly, MSEDCL has calculated Interest on Working Capital for the control
period @ 9.50% for Wires Business.
7.26.4 MSEDCL further submits that Regulation 30.11 of the MYT Regulations 2019
provides that the interest on security deposit shall be Bank Rate as on 1st April
of the Year for which the interest is payable. The relevant extract of the said
Regulations is reproduced below:
30.11 Interest shall be allowed only on the amount held in cash as security
deposit from Transmission System Users, Distribution System Users and Retail
consumers at the Bank Rate as on 1st April of the Year for which the interest is
payable:
7.26.5 Accordingly, MSEDCL has calculated Interest on Security Deposit for the
control period @ 6.50% for Wires Business. MSEDCL has projected the
Security Deposit considering a growth of 5% per annum.
7.26.6 Detailed computation of Interest on Working Capital and Security Deposit for
Wire Business is provided in the following table:
Table 160: Interest on Working Capital and SD for Wires Business for the Control
Period
Particulars
Computation of Working Capital Requirement
O&M expenses for a month
Maintenance Spares at 1% of Opening GFA
One and half months equivalent of the expected revenue
from charges for use of Distribution Wires
Less: Amount held as Security Deposit from Distribution
System Users
Total Working Capital Requirement
Computation of Working Capital Interest
Interest Rate (%) - SBI Base Rate +150 basis points
Interest on Working Capital
Computation of Interest on Security Deposit
Interest Rate (%) - Bank Rate
Interest on Security Deposit
MSEDCL
Rs. Cr.
FY 2024-25
Projected
FY 2020-21
Projected
FY 2021-22
Projected
FY 2022-23
Projected
FY 2023-24
Projected
378.02
530.83
392.51
593.38
407.55
640.03
423.17
659.46
439.39
676.86
1,292.24
1,355.82
1,397.71
1,408.14
1,417.19
(831.67)
1,369.42
(873.25)
1,468.46
(916.91)
1,528.38
(962.76)
1,528.01
(1,010.90)
1,522.55
9.50%
130.10
9.50%
139.50
9.50%
145.20
9.50%
145.16
9.50%
144.64
6.50%
54.06
6.50%
56.76
6.50%
59.60
6.50%
62.58
6.50%
65.71
January 20
150
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
7.26.7 MSEDCL requests the Hon’ble Commission to allow the Interest on Working
capital along with the interest on security deposit for wires business as shown
in above table.
7.26.8 MSEDCL submits that Regulation 32 of the MYT Regulations 2019 provides for
Interest on Working Capital. Regulation 32.4 (a) of the said Regulations
provides for the norms of computation of Working Capital for Retail Supply
Business.
7.26.9 MSEDCL further submits that Regulation 32.3 (b) of the said Regulations
provides that the normative rate of interest on working capital shall be equal to
Base Rate as on the date on which the Petition for determination of Tariff is
filed, plus 150 basis points. The relevant extract of the said Regulations is
reproduced below:
(b) Rate of interest on working capital shall be on normative basis and shall be
equal to the Base Rate as on the date on which the Petition for determination
of Tariff is filed, plus 150 basis points:
7.26.10
Accordingly, MSEDCL has calculated Interest on Working Capital for the
control period @ 9.50% for Retail Supply Business.
7.26.11
MSEDCL further submits that Regulation 30.11 of the MYT Regulations
2019 provides that the interest on security deposit shall be Bank Rate as on 1st
April of the Year for which the interest is payable. The relevant extract of the
said Regulations is reproduced below:
30.11 Interest shall be allowed only on the amount held in cash as security
deposit from Transmission System Users, Distribution System Users and Retail
consumers at the Bank Rate as on 1st April of the Year for which the interest is
payable:
7.26.12
Accordingly, MSEDCL has calculated Interest on Security Deposit for
the control period @ 6.50% for Retail Supply Business. MSEDCL has projected
the Security Deposit considering a growth of 5% per annum.
7.26.13
Detailed computation of Interest on Working Capital and Security
MSEDCL
January 20
151
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Deposit for Retail Supply Business is provided in the following table:
Table 161: Interest on Working Capital and SD for Supply Business for the Control
Period
Particulars
Computation of Working Capital Requirement
O&M expenses for a month
Maintenance Spares at 1% of Opening GFA
One and half months equivalent of the expected revenue
from sale of electricity including revenue from CSS and
Additional Surcharge
Less: Amount held as security deposit
Less: One month equivalent of cost of power purchase,
transmission charges and MSLDC Charges
Total Working Capital Requirement
Computation of Working Capital Interest
Interest Rate (%) - SBI Base Rate +150 basis points
Interest on Working Capital
Interest on Security Deposit
Interest Rate (%) - Bank Rate
Interest on Security Deposit
Rs. Cr.
FY 2024-25
Projected
FY 2020-21
Projected
FY 2021-22
Projected
FY 2022-23
Projected
FY 2023-24
Projected
203.55
106.25
211.35
113.20
219.45
118.38
227.86
120.54
236.59
122.47
9,734.33
10,102.93
10,491.73
10,905.85
11,345.05
(7,485.02)
(7,859.27)
(8,252.23)
(8,664.84)
(9,098.09)
(5,960.70)
(5,853.95)
(5,853.95)
(6,521.85)
(6,818.14)
(3,401.59)
(3,285.73)
(3,276.61)
(3,932.44)
(4,212.12)
9.50%
-
9.50%
-
9.50%
-
9.50%
-
9.50%
-
6.50%
486.53
6.50%
510.85
6.50%
536.40
6.50%
563.21
6.50%
591.38
7.26.14
MSEDCL requests the Hon’ble Commission to allow the Interest on
Working capital along with the interest on security deposit for retail supply
business as shown in above table.
7.27 Other Finance Charges for Control Period
7.27.1 MSEDCL submits that Regulation 30.8 of MYT Regulations, 2019 provides that
the finance charges shall be allowed at the time of true-up. The relevant extract
of the Regulations is reproduced below.
“30.8 The finance charges incurred for obtaining loans from financial institutions
for any Year shall be allowed by the Commission at the time of Truing-up,
subject to prudence check.”
7.27.2 Therefore in line with the above regulations, MSEDCL is not projecting any
finance charges for the control period and will claim the same during true-up of
the respective years.
7.28 Provision for Bad Debts for Control Period
7.28.1 MSEDCL submits that Regulation 76 and 85 of the MYT Regulations, 2019
specifies that a provision for bad and doubtful debt may be allowed up to 1.5%
MSEDCL
January 20
152
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
of the amount shown as trade receivables or receivables from sale of electricity
in the audited accounts of the distribution licensee duly allocated for wires and
supply business. Further, the provision for bad and doubtful debts is allocated
in ratio of 10% to Wires Business and 90% to Retail Supply Business.
7.28.2 .MSEDCL submits that for the projection of the receivables it has adopted the
following approach:

For interest part a y-o-y rise of 2% and 10% is taken for Non-AG and AG
respectively, and for the principle part a y-o-y rise of 2% and 5% is taken
for Non-AG and AG respectively.
The projections for the control period is as shown below:
Period
upto 31.03.2021 (
Projected)
upto 31.03.2022 (
Projected)
upto 31.03.2023 (
Projected)
upto 31.03.2024 (
Projected)
upto 31.03.2025 (
Projected)
MSEDCL
Particulars Principle
Interest
Total
(Rs. Crs)
Non AG
12887.54
5681.51
18569.05
AG
23155.83
17714.30
40870.13
Total
36043.38
23395.81
59439.19
Non AG
13145.29
5795.14
18940.43
AG
24313.63
19485.73
43799.35
Total
37458.92
25280.87
62739.79
Non AG
13408.20
5911.05
19319.24
AG
25529.31
21434.30
46963.61
Total
38937.50
27345.35
66282.85
Non AG
13676.36
6029.27
19705.63
AG
26805.77
23577.73
50383.50
Total
40482.13
29607.00
70089.13
Non AG
13949.89
6149.85
20099.74
AG
28146.06
25935.50
54081.57
Total
42095.95
32085.36
74181.31
January 20
153
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
7.28.3 MSEDCL further submits that it will be writing off the provision of the bad debts
approved for the year as per the provisions of the MYT Regulations.
7.28.4 MSEDCL has considered the provision for bad and doubtful debts as 1.5% of
the projected receivables for the Control Period as given below:
Table 162: Provision for Bad and Doubtful Debt for Wires Business for the Control
Period
Particulars
Bad Debt Provision for Wire Business
Receivables
% of Receivables
Rs. Cr.
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25
Projected
Projected
Projected
Projected
Projected
89.16
94.11
99.42
105.13
111.27
5,943.92
6,273.98
6,628.29
7,008.91
7,418.13
1.50%
1.50%
1.50%
1.50%
1.50%
Table 163: Provision for Bad and Doubtful Debt for Supply Business for the Control Period
Particulars
Bad Debt Provision for Supply Business
Receivables
% of Receivables
Rs. Cr.
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25
Projected
Projected
Projected
Projected
Projected
802.43
846.99
894.82
946.20
1,001.45
53,495.27
56,465.81
59,654.57
63,080.22
66,763.18
1.50%
1.50%
1.50%
1.50%
1.50%
7.28.5 MSEDCL requests the Hon’ble Commission to allow the provision for bad and
doubtful debt as shown in above tables.
7.29 Other Expenses for Control Period
7.29.1 MSEDCL submits that the other expenses of MSEDCL comprise of the
expenditure on account of interest to suppliers/contractors, rebate to
consumers and other expenses viz. compensation for injuries to staff and
outsiders.
7.29.2 Nature of Other expenses is summarised below

Interest to Supplies / Contractors: This amount represents the interest
expense on security deposits collected from collection agencies.

Non-Moving items written off: These are items of stores which are lying as
non-moving for 2 years the realizable value of which is nil.
Incentive to distribution franchisee: This is the incentive given to the

MSEDCL
January 20
154
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
distribution franchisee for recovery of MSEDCL’s arrears from Live & PD
Consumers.
7.29.3 The projections for the control period have been made on the basis of an annual
5% increase over the previous year.
7.29.4 Other Expenses projected for the Control Period is summarised in the following
table.
Table 164: Other Expenses for the Control Period
Particulars
Other Expenses
FY 2020-21
Projected
52.58
FY 2021-22
Projected
55.21
FY 2022-23
Projected
57.97
FY 2023-24
Projected
60.87
Rs. Cr.
FY 2024-25
Projected
63.91
7.29.5 The Detail break up of other expenses is given in the Form No. 6A of the
Regulatory Formats. MSEDCL requests the Hon’ble Commission to allow the
other expenses as submitted above.
7.30 Contribution to Contingency Reserves for Control Period
7.30.1 MSEDCL submits that Regulation 35.1 of MYT Regulations, 2019 provides for
contribution to Contingency Reserve. The relevant extract of the Regulations is
reproduced below:
“35.1 Where the Licensee has made a contribution 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 contribution in the
calculation of Aggregate Revenue Requirement:
Provided that where the amount of such Contingency Reserves exceeds five
(5) per cent of the original cost of fixed assets, no further contribution shall be
allowed:
Provided further that such contribution shall be invested in securities authorised
under the Indian Trusts Act, 1882 within a period of six months of the close of
the Year:……..”
7.30.2 Accordingly, MSEDCL has considered 0.25% of the Gross Fixed Assets (incl.
MSEDCL
January 20
155
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
consumer contribution and grants) and computed contribution to contingency
reserve.
7.30.3 The expenses towards contribution to contingency reserve are allocated in ratio
of fixed assets between wires and retail supply business. i. e. 90% to Wires
Business and 10% to Supply Business.
7.30.4 The contribution to contingency reserve for the Control Period is summarised
in following table.
Table 165: Contribution to contingency reserve for the Control Period
Particulars
Contribution to Contingency Reserves (Wire Business)
Contribution to Contingency Reserves (Supply Business)
Total contribution to Contingency Reserves
FY 2020-21
Projected
143.34
15.93
159.27
FY 2021-22
Projected
158.98
17.66
176.64
FY 2022-23
Projected
170.64
18.96
189.60
FY 2023-24
Projected
175.50
23.82
199.32
Rs. Cr.
FY 2024-25
Projected
179.85
28.17
208.02
7.30.5 MSEDCL requests the Hon’ble Commission to allow the contribution to the
contingency reserves as submitted above.
7.31 Incentives and Discounts for Control Period
7.31.1 MSEDCL submits that the Incentives and discounts are projected for the third
control period considering a nominal rise of 5% over previous year.
7.31.2 The incentives and discounts for the Control Period is summarised in following
table.
Table 166: Incentives/Discounts for the Control Period
Particulars
Inentives/ Discounts
FY 2020-21
Projected
322.38
FY 2021-22
Projected
338.50
FY 2022-23
Projected
355.43
FY 2023-24
Projected
373.20
Rs. Cr.
FY 2024-25
Projected
391.86
7.31.3 MSEDCL requests the Hon’ble Commission to allow the incentives/discounts
as submitted above.
MSEDCL
January 20
156
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
7.32 Income Tax for Control Period
7.32.1 MSEDCL submits that Regulation 34 of the MYT Regulations 2019 provides for
the Income Tax.
34.1 The Income Tax for the Generating Company or Licensee or MSLDC for
the regulated business shall be allowed on Return on Equity, including
Additional Return on Equity through the Tariff charged to the Beneficiary/ies,
subject to the conditions stipulated in Regulations 34.2 to 34.6:…………..
34.2 The rate of Return on Equity, including additional rate of Return on Equity
as allowed by the Commission under Regulation 29 of these Regulations shall
be grossed up with the effective tax rate of respective financial year.
34.3 The base rate of return on equity shall be rounded off to three decimal
places and shall be computed as per the formula given below:
Rate of pre-tax return on equity = Base rate of Return on Equity / (1-t),
Where “t” is the effective tax rate
34.4 The effective tax rate shall be considered on the basis of actual tax paid
in respect of financial year in line with the provisions of the relevant Finance
Acts by the concerned Generating Company or Licensee or MSLDC, as the
case may be:
Provided that, in case of the Generating Company or Licensee or MSLDC has
engaged in any other regulated or unregulated Business or Other Business, the
actual tax paid on income from any other regulated or unregulated Business or
Other Business shall be excluded for the calculation of effective tax rate:
Provided further that effective tax rate shall be estimated for future year based
on actual tax paid as per latest available Audited accounts, subject to prudence
check.
34.5 In case of Generating Company or Licensee or MSLDC paying Minimum
Alternate Tax (MAT), “t” shall be considered as MAT rate including surcharge
and cess:
MSEDCL
January 20
157
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Illustration:(a) In case of a Generating Company or Licensee or MSLDC paying Minimum
Alternate Tax (MAT) at rate of 21.55% including surcharge and cess:
Base rate of return on equity = 15.50/(1-0.2155) = 19.758%
(b) In case of Generating Company or Licensee or MSLDC paying normal
corporate tax including surcharge and cess:
(i) Estimated Gross Income of Company as a whole for FY 2020-21 is Rs. 1,000
crore;
(ii) Income Tax for the year on above is Rs 240 crore;
(iii) Effective Tax Rate for the year 2019-20 = Rs 240 Crore/Rs 1000 Crore =
24%;
(iv)Base rate of return on equity = 15.50/ (1-0.24) = 20.395%.
34.6 Variation between the Income Tax estimated by the Commission for future
year during MYT Order and Mid Term Review Order and the Income Tax
approved by the Commission for the respective Year after truing up for
respective year, shall be allowed for recovery as part of the Aggregate Revenue
Requirement at the time of Mid-term Review or Truing-up, subject to prudence
check:…………….”
7.32.2 MSEDCL submits that even though it has paid Income Tax in FY 18-19, it may
not pay the Income Tax during the Control Period. Hence, it has not grossed
up the return on equity by income tax. However, MSEDCL reserves its rights
for claiming the Income Tax on actual basis during the Mid Term Review.
7.33 Return on Equity for Control Period
7.33.1 MSEDCL submits that Regulation 29.1 of MYT Regulations, 2019, provides for
Return on Equity (RoE) for Distribution Licensee for both Wire and Supply
Business which is reproduced as under:
“29.1 Return on Equity for the Generating Company, Transmission Licensee,
Distribution Wires Business and MSLDC shall be allowed on the equity capital
determined in accordance with Regulation 27 for the assets put to use, at the
rate of up to 15.5 per cent per annum in Indian Rupee terms, and for the Retail
Supply Business, Return on Equity shall be allowed on the amount of equity
MSEDCL
January 20
158
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
capital determined in accordance with Regulation 27 at the rate of up to 17.5
per cent per annum in Indian Rupee terms: ……….”
7.33.2 The methodology to compute return on equity is provided in Regulation 29.3
and the same is reproduced below.
“29.3 The Base Return on Equity shall be computed in the following manner:
(a) Return at the allowable rate as per this Regulation, applied on the amount
of equity capital at the commencement of the Year; plus
(b) Return at the allowable rate as per this Regulation, applied on 50 per cent
of the equity capital portion of the allowable capital cost, for the investments put
to use in Generation Business or Transmission Business or Distribution
Business or MSLDC, for such Year: ………….”
7.33.3 Considering the funding pattern at Table 157, MSEDCL has considered the
equity addition during the year.
7.33.4 MSEDCL submits that the return on equity capital is allocated in the ratio of
Fixed Assets between the Wires and Retail Supply Business, i.e. 90% to Wires
Business and 10% to Supply Business. Therefore, the capital expenditure,
grants, equity and capitalisation is divided into wires and supply business in the
ratio of 90:10.
7.33.5 MSEDCL submits that in Form 4.4 of the Regulatory Formats, MSEDCL has
shown the details of year wise funding for various schemes wherein the debt:
equity portion is arranged. However, there can be few capital works which can
be funded by consumers through consumer contribution which are reconciled
at the time of finalization of accounts. MSEDCL submits that it will be difficult to
project and allocate the consumer contribution to any particular scheme.
Therefore, MSEDCL has not shown the consumer contribution in Form 4.4.
However, for the purpose of computation of RoE, MSEDCL has projected the
consumer contribution based on actual contribution, past experience and
projected capital expenditure.
7.33.6 The return on equity has been computed as per the methodology specified in
MSEDCL
January 20
159
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
the MYT Regulations 2019.
7.33.7 Accordingly, the RoE for wires business for the Control Period is projected as
under:
Table 167: ROE for wires business for the Control Period
Particulars
Regulatory Equity at the beginning of the year
Capitalisation during the year $
Equity portion of capitalisation during the year
Reduction in Equity Capital on account of retirement /
replacement of assets
Regulatory Equity at the end of the year
Return on Equity Computation
Base Rate of Return on Equity
Return on Regulatory Equity at the beginning of the year
Return on Regulatory Equity addition during the year
Interest on Equity portion above 30%
Total Return on Equity
FY 2020-21
Projected
10,848.57
3,707.24
449.38
FY 2021-22
Projected
11,297.95
3,330.12
449.38
-
-
FY 2022-23
Projected
11,747.33
1,099.69
329.91
-
FY 2023-24
Projected
12,077.24
964.79
289.44
-
Rs. Cr.
FY 2024-25
Projected
12,366.67
1,002.23
300.67
-
11,297.95
11,747.33
12,077.24
12,366.67
12,667.34
14.00%
1,518.80
31.46
1,550.26
14.00%
1,581.71
31.46
1,613.17
14.00%
1,644.63
23.09
1,667.72
14.00%
1,690.81
20.26
1,711.07
14.00%
1,731.33
21.05
1,752.38
7.33.8 Further the RoE for retail supply business for the Control Period is projected as
under:
Table 168: ROE for Retail Supply business for the Control Period
FY 2020-21
Projected
1,173.03
411.92
49.93
FY 2021-22
Projected
1,222.96
370.01
49.93
FY 2022-23
Projected
1,272.89
122.19
36.66
FY 2023-24
Projected
1,309.55
107.20
32.16
Rs. Cr.
FY 2024-25
Projected
1,341.71
111.36
33.41
1,222.96
1,272.89
1,309.55
1,341.71
1,375.11
Return on Equity Computation
Base Rate of Return on Equity
15.50%
15.50%
15.50%
15.50%
15.50%
Pretax Return on Equity after considering effective Tax rate
15.50%
15.50%
15.50%
15.50%
15.50%
Return on Regulatory Equity at the beginning of the year
Return on Regulatory Equity addition during the year
Interest on Equity portion above 30%
Total Return on Equity
181.82
3.87
185.69
189.56
3.87
193.43
197.30
2.84
200.14
202.98
2.49
205.47
207.96
2.59
210.55
Particulars
Regulatory Equity at the beginning of the year
Capitalisation during the year $
Equity portion of capitalisation during the year
Reduction in Equity Capital on account of retirement /
replacement of assets
Regulatory Equity at the end of the year
7.33.9 MSEDCL requests the Hon’ble Commission to approve the return on equity for
wheeling and supply business as projected in above tables.
MSEDCL
January 20
160
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
7.34 Impact of payment to MPECS in Control Period
7.34.1 MSEDCL submits that in its Order dated 2nd May, 2016 in Case No. 24 of 2012
on the determination of charges payable to Mula Pravara Electric Co-operative
Society (MPECS) by MSEDCL in pursuance of ATE‟s Judgment in Appeal No.
221 of 2014, Hon’ble Commission has directed MSEDCL to pay user charges
to MPECS. MSEDCL submits that vide its Order dated 2nd May 2016, the
Hon’ble Commission has determined the monthly user charges (Annexure B of
the said Order) to be paid to MPECS. MSEDCL has considered the same. The
following table summarises the payments to be paid to MPECS during the
Control Period.
Table 169: Impact of payment to MPECS in Control Period
Particulars
Impact of Payment to MPECS
FY 2020-21
Projected
37.16
FY 2021-22
Projected
34.15
FY 2022-23
Projected
31.14
FY 2023-24
Projected
28.13
Rs. Cr.
FY 2024-25
Projected
21.14
7.34.2 MSEDCL requests the Hon’ble Commission to allow the impact of payment to
MPECS in Control Period as submitted above.
7.34.3 MSEDCL further submits that the MPECS has arrears of Rs.2397.13 Crs which
are payable to MSEDCL. The litigations regarding Tariff, Recovery and Asset
valuation related matters are pending before various judicial Authorities at this
stage.
7.35 Revenue from sale of electricity for Control Period
7.35.1 MSEDCL has considered the projected sales, no. of consumers and connected
load/contract/Billing demand for the Control Period and tariff prevailing as on
date of submission of the Petition.
7.35.2 Year wise Revenue for the Control Period is summarised in the following table.
Table 170: Revenue from Sale of Power at Existing Tariff for the Control Period
Particulars
Revenue from Sale of Power at Existing Tariff
Rs. Cr.
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25
Projected Projected Projected Projected Projected
76,997.55
79,927.39
83,017.87
86,309.90
89,801.46
7.35.3 MSEDCL requests the Hon’ble Commission to allow the revenue from sale of
MSEDCL
January 20
161
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
power at existing tariff for the Control Period.
7.36 Non-Tariff Income for Control Period
7.36.1 MSEDCL has certain sources of non-tariff income viz. interest on arrears of
consumers, interest on staff loans and advances, sale of scrap, interest on
investment etc. Annual increase of 5% over previous year is considered for the
heads covered under non-tariff income.
7.36.2 However, Regulation 36.3 of the MERC MYT Regulations, 2015 provides for
non-inclusion of the Delayed Payment Charge and Interest on Delayed
Payment in Non-Tariff Income. The relevant Regulation is reproduced below
for reference:
36.3 Such Delayed Payment Charge and Interest on Delayed Payment earned
by the Generating Company or the Licensee shall not be considered under its
Non-Tariff Income.
7.36.3 Accordingly, MSEDCL has not projected any Delayed Payment Charge and
Interest on Delayed Payment in Non-Tariff Income. MSEDCL further has not
projected the deferred income since the consumer contribution and grants is
being getting subtracted from opening GFA.
7.36.4 Following table shows the projected non-tariff income for the control period FY
2016-17 to 2019-20.
Table 171: Non-Tariff Income for the Control Period
Particulars
Rents of land or buildings
Sale of Scrap
Income from investments
Income from sale of tender documents
Prompt payment discount from REC/PFC
Other/Miscellaneous receipts
Total
FY 2020-21
Projected
1.09
54.65
19.43
9.37
12.77
282.45
379.75
FY 2021-22
Projected
1.14
57.39
20.40
9.83
13.41
296.57
398.73
FY 2022-23
Projected
1.20
60.25
21.42
10.33
14.08
311.40
418.67
FY 2023-24
Projected
1.26
63.27
22.49
10.84
14.78
326.97
439.60
Rs. Cr.
FY 2024-25
Projected
1.32
66.43
23.61
11.38
15.52
343.32
461.59
7.36.5 MSEDCL requests the Hon’ble Commission to approve the Non-Tariff Income
as per above projections.
MSEDCL
January 20
162
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
7.37 Income from Open Access Charges for Control Period
7.37.1 MSEDCL submits that the income from Open Access Charges (including CSS,
Transmission Charges, Operating Charges etc.) which is inclusive of the
income from Wheeling charges has been estimated at current level (audited for
FY 18-19) without any escalation. The following table summarises the income
from Open Access Charges for the Control Period.
Table 172: Income from Open Access Charges for the Control Period
Particulars
Income from Open Access Charges
FY 2020-21
Projected
388.89
FY 2021-22
Projected
388.89
FY 2022-23
Projected
388.89
FY 2023-24
Projected
388.89
Rs. Cr.
FY 2024-25
Projected
388.89
7.37.2 MSEDCL requests the Hon’ble Commission to approve the income from open
access charges as per above projections.
7.38 Income from Additional Surcharge for Control Period
7.38.1 The income from additional surcharge has been estimated at current level
(audited for FY 181-9) without any escalation. The summary of projected
income for the Control Period is summarised in following table:
Table 173: Income from Additional Surcharge for the Control Period
Particulars
Income from Additional Surcharge
Rs. Cr.
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25
Projected
Projected
Projected
Projected
Projected
108.44
108.44
108.44
108.44
108.44
7.38.2 MSEDCL requests the Hon’ble Commission to approve the income from
Additional Surcharge as per above projections.
7.39 Aggregate Revenue Requirement for Control Period
7.39.1 Based on the parameters discussed above, the Aggregate Revenue
Requirement for the Control Period for Wire Business is summarised in
following Table:
MSEDCL
January 20
163
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 174: ARR for Wires Business for the Control Period
Particulars
Operation & Maintenance Expenses
Depreciation
Interest on Loan Capital
Interest on Working Capital
Interest on deposit from Consumers and
Distribution System Users
Provision for bad and doubtful debts
Opex Schemes
Contribution to contingency reserves
Return on Equity Capital
Aggregate Revenue Requirement
FY 2023-24
Projected
5,078.04
2,899.49
1,001.12
145.16
Rs. Cr.
FY 2024-25
Projected
5,272.64
2,952.83
771.19
144.64
FY 2020-21
Projected
4,536.29
2,481.19
1,266.48
130.10
FY 2021-22
Projected
4,710.13
2,669.67
1,317.23
139.50
FY 2022-23
Projected
4,890.63
2,839.69
1,221.73
145.20
54.06
56.76
59.60
62.58
65.71
89.16
87.03
143.34
1,550.26
10,337.91
94.11
87.03
158.98
1,613.17
10,846.58
99.42
87.03
170.64
1,667.72
11,181.66
105.13
87.03
175.50
1,711.07
11,265.13
111.27
87.03
179.85
1,752.38
11,337.55
7.39.2 The Aggregate Revenue Requirement for the Control Period for Supply
Business is summarised in the following table:
Table 175: ARR for Supply Business for the Control Period
Particulars
Power Purchase Expenses (including InterState Transmission Charges)
Operation & Maintenance Expenses
Depreciation
Interest on Loan Capital
Interest on Consumer Security Deposit
Provision for bad and doubtful debts
Other Expenses
Intra-State Transmission Charges
Incentives/Discounts
Contribution to contingency reserves
Return on Equity Capital
Impact of payment to MPECS in future years
Opex Scheme
Total Revenue Expenditure
FY 2020-21
Projected
FY 2021-22
Projected
FY 2022-23
Projected
FY 2023-24
Projected
Rs. Cr.
FY 2024-25
Projected
61,234.57
63,894.79
67,455.81
70,917.81
73,817.97
2,442.62
275.69
140.72
486.53
802.43
52.58
10,293.78
322.38
15.93
185.69
37.16
30.18
76,320.25
2,536.22
296.63
146.36
510.85
846.99
55.21
6,352.56
338.50
17.66
193.43
34.15
30.37
75,253.72
2,633.42
315.52
135.75
536.40
894.82
57.97
6,715.36
355.43
18.96
200.14
31.14
30.59
79,381.29
2,734.33
322.17
111.24
563.21
946.20
60.87
7,344.34
373.20
23.82
205.47
28.13
30.85
83,661.63
2,839.12
328.09
85.69
591.38
1,001.45
63.91
7,999.76
391.86
28.17
210.55
21.14
31.14
87,410.22
7.39.3 Based on the Wire and Supply Business ARR discussed above, the stand alone
Revenue gap (combined for wires and supply) for Control Period is summarised
in following Table:
MSEDCL
January 20
164
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 176: Combined ARR for Supply and Wires Business for the Control Period
Particulars
Power Purchase Expenses
Operation & Maintenance Expenses
Depreciation Expenses
Interest on Loan Capital
Interest on Working Capital
Interest on Consumers Security Deposit
Provision for bad and doubtful debts
Other Expenses
Intra-State Transmission Charges MSLDC charge
Incentives/Discounts
Contribution to Contingency Reserves
Opex Scheme
Return on Equity Capital
Add: Impact of payment to MPECS in future years
Aggregate Revenue Requirement
Revenue from Sale of Power
Non-Tariff Income
Income from Open Access Charges
Income from Additional Surcharge
Total Revenue
Revenue Gap/(Surplus)
FY 2020-21
Projected
61,234.57
6,978.91
2,756.88
1,407.20
130.10
540.58
891.59
52.58
10,293.78
322.38
159.27
117.21
1,735.95
37.16
86,658.16
76,997.55
379.75
388.89
108.44
77,874.63
8,783.54
FY 2021-22
Projected
63,894.79
7,246.35
2,966.30
1,463.59
139.50
567.61
941.10
55.21
6,352.56
338.50
176.64
117.40
1,806.60
34.15
86,100.30
79,927.39
398.73
388.89
108.44
80,823.46
5,276.84
FY 2022-23
Projected
67,455.81
7,524.04
3,155.21
1,357.48
145.20
595.99
994.24
57.97
6,715.36
355.43
189.60
117.62
1,867.86
31.14
90,562.95
83,017.87
418.67
388.89
108.44
83,933.87
6,629.08
FY 2023-24
Projected
70,917.81
7,812.38
3,221.66
1,112.36
145.16
625.79
1,051.34
60.87
7,344.34
373.20
199.32
117.88
1,916.55
28.13
94,926.77
86,309.90
439.60
388.89
108.44
87,246.84
7,679.93
Rs. Cr.
FY 2024-25
Projected
73,817.97
8,111.76
3,280.93
856.88
144.64
657.08
1,112.72
63.91
7,999.76
391.86
208.02
118.17
1,962.93
21.14
98,747.77
89,801.46
461.59
388.89
108.44
90,760.38
7,987.39
7.39.4 MSEDCL requests the Hon’ble Commission to allow the expenditure and
revenue gap as shown in the above table.
MSEDCL
January 20
165
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
8
8.1
ADDITIONAL CLAIMS AND NET RECOVERY FROM TARIFF
Impact of Reinstatement of GFA of Rs. 927 Crs
8.1.1 MSEDCL submits that in MTR Petition, it had submitted the reconciliation of
GFA and requested the Hon’ble Commission to approve an additional/
difference amount of Rs. 1135 Crore in the opening GFA of FY 2015-16. The
Hon’ble Commission in the MTR Order dated 12th September 2018 has
approved Rs. 927 Crore against Rs. 1135 Crore claimed.
8.1.2 In the said Order, Hon’ble Commission had ruled that the capitalisation is
allowable and has to be added in the GFA. Hon’ble Commission in the said
Order also ruled that any consequent changes on account of the same in future
years as mentioned in the Order cannot still be allowed as no such computation
or workings has been provided by MSEDCL.
8.1.3 Therefore, MSEDCL has computed the impact of reinstatement of GFA of Rs.
927 Crore in Chapter 3. The net impact of reinstatement of GFA is summarized
in following table.
Table 177: Net Impact of Reinstatement of GFA of Rs. 927 Crs
Financial Year Depreciation Interest on Loan
FY 2008-09
32.36
55.94
FY 2009-10
33.41
51.60
FY 2010-11
34.66
48.10
FY 2011-12
46.51
FY 2012-13
44.71
FY 2013-14
46.71
41.06
FY 2014-15
18.39
37.00
FY 2015-16
35.88
FY 2016-17
0.04
39.18
Grand Total
165.57
399.99
Rs. Crs
Return on Equity Total
9.48
97.78
9.42
94.44
9.43
92.19
9.43
55.95
9.46
54.17
9.30
97.07
9.06
64.45
(12.02)
23.86
(12.56)
26.65
40.99 606.55
8.1.4 MSEDCL requests the Hon’ble Commission to allow the impact of
reinstatement of GFA as computed above.
MSEDCL
January 20
166
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
8.2
Impact of capitalisation of DPDC for FY 16-17 in MTR Order
8.2.1 Considering the provision of Regulation 23.6 of MYT Regulation 2015, Hon’ble
Commission allowed capitalisation towards non-DPR schemes only up to
threshold level.
8.2.2 However, subsequently, MSEDCL submitted the DPR for DPDC for the
approval of the Hon’ble Commission. Hon’ble Commission accorded its post
facto approval vide Letter No. MERC/Capex/2019-20/1108 dated 28th Nov.
2019. Accordingly, MSEDCL requests the Hon’ble Commission to consider the
DPDC in DPR Schemes FY 16-17 onwards and allow the impact of the same
disallowed in FY 16-17 as shown in following table.
Table 178: Impact of DPDC Disallowance for FY 16-17
Rs. Crs
Particulars
Approved
Total DPR Allowed in MTR
Add: Capitalisation for DPDC Schemes
Revised Total DPR Allowed
Total Excess Capitalisation in the year
2,110.39
300.69
2,110.39
423.22
2,533.61
300.69
50% of IDC of excess capitalisation
Net DPR Allowed after adjusting IDC of Excess capitalisation
1.31
2,109.08
1.31
2,532.30
Allowable non-DPR capitalisation (considering 20% cap)
Total Non-DPR Grant schemes
421.82
1,195.05
506.46
771.83
Net Non-DPR capitalisation approved
Total (DPR+non-DPR Capitalisation) for loan & Equity
421.82
2,530.89
506.46
3,038.76
58.38
58.38
2,589.27
3,097.14
Capitalization-Other Assets
Net Capitalisation allowed (for depreciation)
Revised
Impact to
be claimed
507.86
8.2.3 Considering the above, MSEDCL has revised the Opening GFA of FY 17-18 to
the extent of impact of capitalisation of DPDC as shown in the above table.
8.3
Impact of Review Order
8.3.1 MSEDCL submits that on 29th October 2019, it has filed Petition for review of
certain aspects of the Mid Term Review (MTR) Order dated 12 September,
MSEDCL
January 20
167
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
2018 in Case No.195 of 2017. Hon’ble Commission disposed of the said
Petition vide its Order dated 24th December 2018 and partly allowed certain
contentions of MSEDCL. MSEDCL further submits that the impact of said Order
is considered in the following paragraphs.
8.3.2 Calculation of normative O&M Expenses for FY 15-16:
Hon’ble Commission in its Order dated 24th December 2018 ruled that for the
computation of normative O&M Expenses for FY 2015-16, opening GFA had
been considered as Rs. 39,641 Crore thereby not included Rs. 927 Crore in the
opening GFA. This was an error apparent from the face of record while
considering the GFA for working out such normative expense. MSEDCL in
Paragraph 2.2 above has computed the revised O&M Expenses for FY 15-16.
The impact of revised O&M Expenses for FY 15-16 and FY 16-17 is
summarised in following table.
Table 179: Impact of Revised O&M Expenses for FY 15-16 and FY 16-17
Rs. Crs
Particulars
O&M Expenses for FY 15-16
Approved in MTR Order
Now Revised
Impact passed on to ARR
O&M Expenses for FY 16-17
Approved in MTR Order
Now Revised
Impact passed on to ARR
2/3 of
1/3 of
Net
Efficiency
Efficiency
Entitlement
gains/Losses Gains/Losses after sharing
Actual
Gains/
(Loss)
6,792.34
6,826.16
5,417.68
5,417.68
1,374.66
1,408.48
916.44
938.99
458.22
469.49
6,334.12
6,356.66
22.54
6,654.74
6,678.07
5,796.69
5,796.69
858.05
881.38
572.04
587.59
286.02
293.79
6,082.71
6,090.48
7.78
Normative
8.3.3 Correction in Distribution Loss of FY 2016-17:
Hon’ble Commission in its Order dated 24th December 2018 ruled that as the
input at T< >D periphery was metered, it needed to be maintained as it was.
Replacing such metered value by a derived number was not appropriate.
Hence, it was an error apparent from the face of records. Hence, Hon’ble
Commission revised the input at T< >D periphery for FY 2016-17 to 116300 MU
based on metered energy. This lead to revision in Distribution Loss to 15.33%
from 15.95% approved in impugned MTR Order. Accordingly, Hon’ble
Commission ruled that impact of Rs. 178 crore on sharing of loss needs to be
MSEDCL
January 20
168
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
allowed to MSEDCL. MSEDCL has computed the impact of correction in
Distribution Loss for FY 2016-17.
Table 180: Impact of Correction in Distribution Loss for FY 2016-17
Units
Particulars
Impact to
Now
be passed
Approved
Revised
on to ARR
MTR Approved Distribution Loss Trajectory
MYT approved Loss Trajectory
Sales Excl. EHV sales
EHV Sales
Total Sales
Intra STS loss (Approved)
Power Requirement at Ex-Bus Periphery (Actual)
%
%
MU
MU
MU
%
MU
15.33%
15.95%
13.50%
13.50%
86,252
86,252
5,480
5,480
91,732
91,732
3.63%
3.63%
1,12,171 1,11,392
Power Requirement at Ex-Bus Periphery (Normative)
MU
1,09,155
1,09,155
MU
3,016
2,236
Rs/ kWh
3.43
3.43
Rs. Crore
1,035
767
Rs. Crore
Rs. Crore
689.90
344.95
511.54
255.77
Additional/ (lower) Power purchase due to higher
distribution loss
Marginal Variable Cost of Power Purchase
Additional Power purchase Cost due to higher
distribution loss
Efficiency Loss to be retained by MSEDCL
Efficiency Loss to be borne by the consumers
178.36
8.3.4 Loss of obsolescence of fixed assets for FY 15-16:
Hon’ble Commission in its Order dated 24th December 2018 ruled that for FY
15-16, it had not approved Rs. 8 Crore on account of “loss of obsolescence of
fixed assets and on account of natural calamities.” However, In MYT Order
dated 3 November, 2016, the Hon’ble Commission had allowed such expenses.
Hence, Hon’ble Commission accepted that it was an error apparent from the
face of records, and therefore, ruled that other expenses of Rs. 8 Crore needed
to be allowed.
8.3.5 MSEDCL requests the Hon’ble Commission to allow the impact of Review
Order as computed above.
MSEDCL
January 20
169
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 181: Total Impact of Review Order
Particulars
Impact of O&M Expenses for FY 15-16 and FY 16-17
Correction in Distribution Loss for FY 2016-17
Loss of obsolescence of fixed assets for FY 15-16
Total Impact of Review Order
Amount in
Rs. Crs
30.32
178.36
8.00
216.68
8.3.6 MSEDCL is submitting the above impact of Review Order without prejudice to
any of its rights and contentions taken by MSEDCL in Appeal No. 280 of 2019
before the Hon’ble APTEL, New Delhi and MSEDCL reserves its right to again
approach the Hon’ble Commission depending upon the final decision of Hon’ble
APTEL, New Delhi in said Appeal.
8.4
Impact of Change in Law in Power Purchase
8.4.1 MSEDCL submits that the Supreme Court in the Energy Watchdog matter in
Civil Appeal No. 5399-5400 vide its Judgement dated 11.04.2017 ruled that
NCDP 2013 is a ”Change in Law’ and further elaborated that the party affected
due to the Change in law be restituted to its’ same economical position. In line
with this order, Hon’ble Commission has passed Orders in following matters in
respect of M/s. APML for approval of various claims under change in Law.
S.No.
1
Subject Matter
SHAKTI
i.e. 4 years
policy
Change In Law
3
Case No.
Date of
order
NCDP policy as Change June 2013 to 31.03.2017 189 of 2013 and 07.03.2018
in law
2
The period of Impact
140 of 2014
as Since 01.04.2017 to Till
290 of 2018
07.02.2019
date i.e. 2.5 years
Cancellation of Lohara From
Date
of 68 of 2012
06.09.2019
Coal Block as Change in commissioning till date
4
Law
i.e. 5 years
Carrying Cost
June 2013 to 31.03.2017 295 of 2018
18.12.2018
i.e. 4 years
MSEDCL
January 20
170
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
8.4.2 Hon’ble commission in the above orders has allowed NCDP policy, SHAKTI
policy, Cancellation of Lohara Coal Block as a Change in Law and has allowed
relief to M/s. APML for past period from 2013. These Orders are passed over a
period of last 1.5 years. Subsequent to the Orders of Hon’ble Commission, M/s.
APML has raised claims in the respective matters. The details of claims are as
follows:
Change In Law Event
Claim Type
NCDP Policy
Main Bill
3,094.00
Carrying Cost
1,442.88
Main Bill
2,451.05
SHAKTI Policy
Carrying Cost
Cancellation Lohara Coal Block
Claims in Rs. Cr.
242.70
Main Bill
3,280.61
Carrying Cost
2,406.00
Total
12,917.24
8.4.3 MSEDCL has principally challenged MERC order dated 07.02.2019 in Case
No. 290 of 2018 (SHAKTI) and MERC order dated 06.09.2019 in Case No. 68
of 2012 (Lohara Coal Block) before APTEL. APML has challenged MERC
orders dated 07.03.2018 in Case No. 189 of 2013 and Case No. 140 of 2014,
order dated 07.02.2019 in Case No. 290 of 2018 demanding consideration of
operational parameters such as normative SHR and GCV on as received basis
along with compensation for 100 % shortfall. APML has also challenged order
dated 06.09.2019 in Case No. 68 of 2019 before APTEL.
8.4.4 Further, regarding Inter Plant Transfer (IPT) of coal, i.e. utilization of linkage
coal of APL, Mundra to APML, Tiroda, Hon’ble CERC has also issued order
dated 31.05.2018 in Petition No.97/MP/2017 and order dated 08.07.2019 in
Petition no.269/MP/2018 and has ruled that supply of coal under the FSA shall
remain unchanged for the commercial purpose and shall be on account of the
original Power Plant.
MSEDCL
January 20
171
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
8.4.5 As the above mentioned matters are sub-judice, at this stage exact amount of
payment to be made against the above claims is not finalised. Further, APTEL
has not granted any stay on these orders. Hence, at present MSEDCL is liable
for payment.
8.4.6 In similar developments, Rajasthan Electricity Regulatory Commission (RERC)
vide order dated 17.05.2018 allowed NCDP 2013 as a change in Law to M/s.
Adani Rajasthan. Rajasthan Discom had filed appeal before APTEL and APTEL
by interim order in Appeal No. 202 of 2018 passed the directives to Rajasthan
Discoms to make payment of 70% of the compensation claims to M/s. Adani
Rajasthan. Rajasthan Discoms had filed a Civil appeal against APTEL
Judgement before Hon’ble Supreme Court bearing no. 10188 / 2018. Hon'ble
Supreme Court passed the order dated 29.10.2018 and directed Rajasthan
Discoms to make payment of 50% of claim payments to M/s. APRL within two
months from the date of order. Further, recently on 14.9.2019 APTEL has
issued final Judgement in Appeal No. 202 of 2018 and allowed NCDP and
Shakti Policy as Change in Law and also directed Rajasthan Discoms to pay
the balance claims to M/s. APRL within 2 and 3 months respectively.
8.4.7 As per present regulations, MSEDCL recover claims of Change in Law and
Carrying cost from consumers through FAC. In line with Hon'ble Supreme Court
order in case no 10188 of 2018 dtd.29.10.2018, MSEDCL has made partial
payment towards claims and carrying cost amounting to Rs. 2266 Crore in
respect of claims raised by M/s APML by recovering the amount through FAC
to avoid carrying cost burden and contempt of court order.
8.4.8 However in line with Hon'ble Supreme Court order for Rajasthan Discoms to
make payment of 50% of claim and considering the paid amount of Rs.2266
Crore, MSEDCL is liable to pay amount of Rs. 4192 Crore to avoid the carrying
cost impact and contempt of Court Order.
8.4.9 Similarly, M/s. GMR had filed the Petition No. 8/MP/2014 before CERC. CERC
issued the Order on 01.02.2017 and disallowed compensation on certain
change in law events claimed by the M/s. GMR. Aggrieved by the decision of
MSEDCL
January 20
172
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
the Commission, M/s. GMR filed appeal A. No. 111 of 2017 before APTEL.
APTEL vide its order dated 14.8.2018, remanded back the matter to CERC to
pass consequential orders regarding Busy Season Surcharge, Development
Surcharge, MOEF Notification on coal quality, change in NCDP and Carrying
Cost.
8.4.10 Meanwhile, GMR had also filed a fresh Petition No. 284/MP/2018 whereby
GMR included all its previous disallowed Change in Law along with fresh claim
regarding SHAKTI Policy with a prayer of declaration of the same as a change
in law event. CERC issued Order on 16.05.2019 and has allowed all the claims
considering SHR as per CERC regulation and GCV on as received basis.
MSEDCL has filed appeal on 26.07.2019 (bearing DFR No. 2221 of 2019)
against CERC Order dated 16.05.2019 before APTEL. However, there is no
stay on the Order.
8.4.11 M/s GMR Warora Energy has raised change in law bills of Rs. 162.68 Crore
and details of bills are given in following table.
Description
GMR Claim in Rs. Cr.
Coal Shortfall May14 to Aug19
74.62
BSS & DS May14 to June18
35.37
Carrying cost
40.46
Late Payment Surcharge
12.23
Total
162.68
8.4.12 APTEL, during the hearing on 23.10.2019 directed to release 50% of payment
of total claim by GMR after adjusting payments made within one week.
Accordingly, MSEDCL has made payment of Rs. 81.34 Crores (i.e. 50 % of
claim made by GMR).
8.4.13 Hence, it is submitted that balance amount of Rs. 4192 Crore to be paid is
added to the revenue gap for the Control Period. MSEDCL also submits that
the Appeals against above Orders on different grounds are pending at
MSEDCL
January 20
173
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Appellate Authority and whenever above Appeals get finality in the respective
courts and the Court issues Orders in the above matter of change in law for
NCDP policy, SHAKTI policy, Lohara Coal Block etc., MSEDCL shall pass on
or recover such impact through FAC mechanism from consumers.
8.5
Carrying Cost on previous Gap and other Claims
8.5.1 Hon’ble Commission has been allowing carrying cost/holding cost on the
revenue gap/surplus respectively. MSEDCL requests the Hon’ble Commission
to allow the carrying cost on the previous gaps.
8.5.2 MSEDCL further submits that the APTEL, New Delhi in its Judgement dated
8th April, 2015 in the matter of Reliance Infrastructure Limited Vs MERC and
others, the APTEL has ruled that the carrying cost should be calculated for the
period from the middle of the financial year in which the revenue gap had
occurred upto the middle of the financial year in which the recovery has been
proposed. This is because the expenditure is incurred throughout the year and
its recovery is also spread out throughout the year.
8.5.3 The revenue gap is determined at the end of the financial year in which the
expenditure is incurred. However, the under or over recovery is the resultant of
the cost and revenue spread out throughout the year. Similarly, the revenue
gap of the past year is recovered throughout the year in which its recovery is
allowed. Therefore, the carrying cost on revenue gap as a result of true up for
a financial year should be calculated from the mid of that year till the middle of
the year in which such revenue gap is allowed to be recovered.
8.5.4 MSEDCL requests the Hon’ble Commission to allow the carrying cost on same
principle so as to avoid any legitimate revenue loss.
8.5.5 MSEDCL submits that the Hon’ble Commission in its MTR Order approved total
revenue gap of Rs. 20,651 Crs. However, recovery of only Rs. 8,268 Crs was
allowed over a period of two years. Hon’ble Commission created Regulatory
Assets of Rs. 12,382 Crs. Hon’ble Commission directed MSEDCL, that at the
time of next ARR/Tariff filling process for final true-up of ARR of 3rd Control
Period , MSEDCL should submit its proposal for planned recovery of Regulatory
MSEDCL
January 20
174
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Asset along with carrying cost for the ensuing years in the next Control Period,
so that recovery of such Regulatory Asset and adjustment of on account of final
true up of Revenue Gap/(Surplus) (if any) shall not exceed for the period of two
years beyond the current Control Period (i.e. 3rd Control Period).
8.5.6 MSEDCL submits that the details of carrying cost on the regulatory assets,
revenue gap of FY 2016-17 to FY 2019-20 along with the additional claims is
given in following table. The Interest Rate is taken as per the rate on Interest
on Working Capital for the respective year.
MSEDCL
January 20
175
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 182: Calculation of carrying cost on previous claims
Particulars
Impact of Reinstatement of GFA
Impact of Review Order
Revenue Gap
Regulatory Assets
Total
Interest Rate
From
To
FY 08-09
97.78
FY 09-10
94.44
FY 10-11
92.19
FY 11-12
55.95
FY 12-13
54.17
FY 13-14
97.07
FY 14-15
64.45
FY 15-16
23.86
30.54
FY 16-17
26.65
186.14
FY 17-18
FY 18-19
-1,677
97.78
94.44
92.19
55.95
54.17
97.07
64.45
54.40
212.79
2,835
12,382.45
-1,677.05 15,217.66
Rs. Crs
FY 19-20
2,288
2,288.19
12.25%
12.25%
11.75%
13%
14.75%
14.45%
14.75%
14.75%
10.20%
10.19%
9.89%
9.50%
9.50%
01-10-2008 01-10-2009 01-10-2010 01-10-2011 01-10-2012 01-10-2013 01-10-2014 01-10-2015 01-10-2016 01-10-2017 01-10-2018 01-10-2019 01-10-2020
30-03-2020 30-03-2020 30-03-2020 30-03-2020 30-03-2020 30-03-2020 30-03-2020 30-03-2020 30-03-2020 30-03-2020 30-03-2020 30-03-2020 30-03-2020
FY 08-09
FY 09-10
FY 10-11
FY 11-12
FY 12-13
FY 13-14
FY 14-15
FY 15-16
FY 16-17
FY 17-18
FY 18-19
FY 19-20
5.99
11.98
11.49
12.71
14.42
14.13
14.42
14.42
9.97
9.96
9.67
9.29
5.78
11.10
12.28
13.93
13.65
13.93
13.93
9.63
9.62
9.34
8.97
5.42
11.99
13.60
13.32
13.60
13.60
9.40
9.39
9.12
8.76
3.64
8.25
8.08
8.25
8.25
5.71
5.70
5.53
5.31
4.00
7.83
7.99
7.99
5.53
5.52
5.36
5.15
7.01
14.32
14.32
9.90
9.89
9.60
9.22
4.75
9.51
6.57
6.56
6.37
6.12
4.01
5.55
5.54
5.38
5.17
10.85
21.67
21.05
20.21
-85.41
-165.87
-159.32
752.56
1,176.33
108.69
Total
138.45
122.15
108.19
58.73
49.35
74.26
39.89
25.65
73.79
-410.60
1,928.89
108.69
MSEDCL
Total
January 20
176
2,317.44
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
8.6
Carrying Cost on unrecovered revenue gap during Control Period
8.6.1 MSEDCL submits that the full recovery of revenue gap in the first few years
would amount to tariff shock to the consumers. In view of the above, MSEDCL
has deferred revenue recovery. However, the deferred revenue recovery will
require funding for the same. Hence, in view of the above, MSEDCL has
computed the carrying cost on the unrecovered revenue gap and regulatory
assets as shown in following table.
Table 183: Carrying Cost on Unrecovered Revenue Gap during the Control Period
Rs. Crs
Revenue Recovery
Formula FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Total Revenue Gap for previous years
Revenue Gap for current year
Total Revenue Gap upto current year
Recovery from Addl CSS
Recovery from Addl AS
Net Revenue Gap upto current year
Less: Recovery from Tariff hike
Revenue gap to be carried forward
Interest Rate
Carrying Cost on unrecovered Gap
Carrying Cost on previous claims till FY 19-20
Total Carrying Cost
a
b
c=a+b
d
e
f=c+d+e
g
h=f-g
i
j=a*i
k
l=j+k
8.7
16,652
8,784
25,436
-175
-530
24,731
5,928
18,804
9.50%
791
2,317
3,108
18,804
5,277
24,080
-223
-545
23,312
8,960
14,353
9.50%
1,786
14,353
6,629
20,982
-232
-563
20,187
12,033
8,154
9.50%
1,364
1,786
1,364
8,154
7,680
15,834
-243
-576
15,014
15,080
-65
9.50%
775
775
-65
7,987
7,922
-257
-571
7,094
18,358
-11,264
9.50%
-6
-6
Incremental Revenue from CSS and Additional Surcharge
8.7.1 MSEDCL has considered the impact of incremental revenue from CSS and
Additional Surcharge as per the proposed CSS and proposed Additional
Surcharge for the Control Period.
8.8
Net Recovery from Tariff
8.8.1 Considering the above, MSEDCL has computed the net recovery from tariff as
shown in following table.
MSEDCL
January 20
177
Total
36,357
60,358
4,709
7,027
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 184: Net Recovery from Tariff
Particulars
Final True Up Requirement for FY17-18
Final True Up Requirement for FY 18-19
Provisional True Up Requirement for FY 19-20
Projected Revenue Gap for FY 20-21
Projected Revenue Gap for FY 21-22
Projected Revenue Gap for FY 22-23
Projected Revenue Gap for FY 23-24
Projected Revenue Gap for FY 24-25
Impact of Review Order on MTR Order
Impact of Reinstatement of GFA of Rs. 927 Crs
Carrying Cost for previous gaps/impact and unrecovered
gaps during Control Period
Total Revenue Gap for the MYT Period
Impact of Change in Law
Regulatory Assets
Carrying Cost on Regulatory Assets upto Mar-20
Recovery for Regulatory Assets
Total Recovery
Incremental Revenue from Cross Subsidy Surcharge
Incremental Revenue from Additional Surcharge
Net recovery from Tariff
Amount
Rs. Cr
(1,677.05)
2,835.21
2,288.19
8,783.54
5,276.84
6,629.08
7,679.93
7,987.39
216.68
606.55
5,850.30
46,476.66
4,192.00
1,176.33
12,382.45
64,227.44
(1,129.33)
(2,785.00)
60,313.11
8.8.2 MSEDCL requests the Hon’ble Commission to approve the net recovery from
tariff as computed above
MSEDCL
January 20
178
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
9
9.1
TARIFF DESIGN AND METHODOLOGY
Tariff Design Principles
9.1.1 Hon’ble Commission has been guided by the Electricity Act, 2003 and the
National Tariff Policy while determining retail tariffs across the State of
Maharashtra. Hon’ble Commission has always laid emphasis on adoption of
factors that encourages economy, efficiency, effective performance and
improved conditions of supply for the consumers. On the similar guidelines
Hon’ble Commission may apply similar principles considering the ground
realities as well as to ensure the financial viability of the Licensee.
9.1.2 Tariffs linked to cost of supply and gradual reduction of cross-subsidies in a
given time frame is an important feature of the Electricity Act, 2003 and the
Tariff Policy. Also, in terms of the Section 61(g) of the Act, the Hon’ble
Commission shall be guided by the objective that the tariff progressively reflects
the efficient and prudent cost of supply of electricity.
9.1.3 MSEDCL hereby submits that there is an urgent need for ensuring recovery of
cost of service from consumers to make the sectors viable. At the same time
as mandated in the EA 2003, some minimum level of support by way of cross
subsidy is required to make electricity affordable for very poor consumers as
electricity has now become a necessity and an essential driver of growth in an
agrarian economy of the State.
9.2
Full Cost Recovery
9.2.1 MSEDCL submits that the present Petition is based on full cost recovery of the
total revenue gap computed for the previous years. Section 61 of the Act
mandates that the Appropriate Commission, while determining tariff, shall not
only ensure safeguarding of consumer’s interests but shall also ensure the
recovery of the cost of electricity in a reasonable manner.
9.2.2 MSEDCL submits that the MYT period can be utilized to evolve a methodology
to determine the commercial principles to sustain growth, ensure financial
viability of the Licensee, avoid financial losses and at the same time protect the
consumer interests. Also, paragraph 5.10 of the National Tariff Policy notified
MSEDCL
January 20
179
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
on 28th January 2016 states that
“Consumer interest is best served in ensuring viability and sustainability of the
entire value chain viz., generation, transmission and distribution of electricity,
while at the same time facilitating power supply at reasonable rate to
consumers. The financial turnaround/restructuring plans are approved by the
Appropriate Government from time to time to achieve this objective. The
Appropriate Government as well as the Appropriate Commission while
implementing such plans shall ensure viability of the generation, transmission
and distribution in terms of recovery of all prudent costs”.
9.2.3 MSEDCL thus proposes the following Tariff Philosophy which may be
considered while deciding the retail tariffs as well as the terms and conditions
of the tariff schedule:
9.3
Rationalization of Fixed Cost
9.3.1 It has been the Hon’ble Commission’s policy of recovering the Fixed Costs of
MSEDCL through a Fixed Tariff applicable to the consumers (to the extent
possible). Hon’ble Commission in its first tariff Order dated 5th May 2000 while
determining the fixed charge component of the tariff ruled that the recovery of
fixed costs should come from fixed charges and also observed that the fixed
charge component of tariff needs to be gradually increased in due course to
cover the actual fixed costs incurred.
9.3.2 The Hon’ble Commission has articulated its view point in its December 2003
Tariff Order as follows:
“The Commission has already elaborated the rationale for levy of demand
charges in its previous Tariff Orders. A major part of the costs of the MSEB,
apart from the cost of fuel for own generation and variable cost of power
purchase, is fixed in nature and the ratio of fixed to variable costs currently
stands at 53:47. Though the consumer accesses electricity at any time he
desires, the MSEB’s infrastructure (physical infrastructure as well as
employees, administration, etc.) has to be permanently available, and related
costs incurred irrespective of the level of consumption by individual consumers,
and these expenses thus comprises the fixed costs of the MSEB. The
Commission has continued the process of increasing the recovery of fixed costs
MSEDCL
January 20
180
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
by levy of fixed charges to consumers, to safeguard the MSEB from steep
fluctuations in revenue with varying consumption over time. The revised
fixed/demand charges have been designed to recover around 40% of MSEB’s
fixed costs, as compared to the existing level of recovery of around 35% of fixed
costs. The balance fixed costs are recovered through energy charges. Thus,
for any disruption in supply, the MSEB is effectively losing out on the recovery
of fixed costs to that extent. If MSEB is not allowed to recover fixed cost for the
period of interruptions and low voltage period, it would further affect the financial
viability of MSEB.” (“Emphasis added”)
9.3.3 In the APR Order for FY 2007-08 for MSEDCL, the Hon’ble Commission
observed “..........As and when sufficient power is available and contracted by
the licensees, the fixed charges can again be increased, and energy charges
reduced correspondingly.”
9.3.4 Similarly, in the Tariff Order dated September 12, 2010, Hon’ble Commission
has observed that “.... once sufficient power is available and contracted by the
licensees, the fixed/demand charges can again be increased, and energy
charges reduced correspondingly.”
9.3.5 It is humbly submitted that, at that point of time also, the power supplied to
certain categories of consumers was maintained without any reduced supply.
As such, MSEDCL feels that the said reduction was unwarranted.
9.3.6 It is further submitted that unavoidable circumstances in real time operations
such as coal shortages, faults in generation units, transmission line tripping etc.
have led to load shedding for short duration. The load shedding is resorted to
safeguard the system from over drawls and/or grid collapse. It is not MSEDCL’s
infrastructure which is incapable of supplying the power, rather there is
sufficient supply to match the consumer demand. Thus, the fixed/demand
charges should not be linked to the few instances of load shedding.
9.3.7 At present, due to sufficient availability of power, there is no Load Shedding in
the State. MSEDCL therefore categorically submits that it has sufficient power
and has contracted enough power to meet the present and ever-increasing
MSEDCL
January 20
181
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
future demand of the State.
9.3.8 MSEDCL submits that out of the total ARR, major expenses are fixed in nature
and need to be incurred irrespective of any distribution / retail business
undertaken by it. A similarity can be drawn in case of generator i.e. even if
power plant is shut down, the generating companies need to incur expenses
for employees, minor R&M to other assets, depreciation, obligation for loan
repayment, interest on loan payments etc. MSEDCL also has similar type of
fixed expenses which need to be incurred irrespective of any distribution / retail
business undertaken by it. MSEDCL submits that ideally these fixed expenses
should be recovered by a combination of Fixed & Demand Charges. MSEDCL
has carried out the detailed exercise wherein the fixed cost obligations are
mapped out and which it intends that Hon’ble Commission may align the fixed
charges accordingly.
9.3.9 MSEDCL submits that all its expenditure excluding the variable cost (fuel
related cost) of Power Purchase Expense is fixed in nature. Thus ideally these
fixed cost expenses should be recovered through Fixed/Demand Charges.
9.3.10 The Hon’ble Commission in the last MTR Order dated 12th September 2018,
had allowed recovery of only 18% through fixed charges as against 55% of
recovery that should have been allowed then. This under-recovery has led to
inadequacy of funds and unnecessary borrowings by MSEDCL. Further, the
recovery from Fixed Charges is much lower which is against the basic principles
of recovery of fixed costs through fixed charges as agreed by Hon’ble
Commission in the previous Tariff Orders. Since the fixed charges are
inadequate, MSEDCL need to borrow some amount to meet its working capital
requirements for discharging its fixed liabilities. Also, not increasing the Fixed
Charges will result in a corresponding impact on Energy Charges which may
not be sufficient enough to meet the fixed charges obligation as the same
depends on the consumption of the consumers which is fluctuating and
seasonal in nature.
9.3.11 The following table compares Demand Charges for HT Industrial category
consumers among some of the states. MSEDCL submits that the fixed charges
MSEDCL
January 20
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in the neighbouring states are relatively higher than those approved for
MSEDCL. Such charges eventually lead to appropriate fixed charge recovery
for these States.
Rs./kVA/Month
FY 19-20
EHV- Industries
MSEDCL
391
Madhya Pradesh
650
Andhra Pradesh
475
Gujarat*
475
Himachal Pradesh
425
Telangana
390
Chhattisgarh^
500
*For > 1000 kVA; ^For Mines
9.3.12 As stated rightly by the Hon’ble Commission in the tariff order dated 26th June
2015 that “Levy of Fixed Charges and Demand Charges do not result in any
windfall gain to MSEDCL, since it is recovering only a part of the Fixed Costs
through such Charges”, the question is about the principle of applicability and
recovery of fixed charges to meet fixed liabilities and not continue to dependent
on the consumption.
9.3.13 In the last MTR order dated 12th September 2018, the Hon’ble Commission
has accepted the prayer of MSEDCL for increase in the Fixed Charges to
certain extent and this may be considered as a gradual approach so as to
ensure proper recovery process for MSEDCL. This may not result into any
undue tariff burden on the consumers because, to maintain the full cost
recovery, the tariff will either have a corresponding change on fixed charges or
energy charges.
9.3.14 Therefore, MSEDCL has proposed increasing the Fixed/Demand Charges for
various categories for each category of consumers every year as a step
towards gradual balancing the fixed charges recovery with fixed charges
obligation. This is in line with the Hon’ble Commission’s observation that the
recovery of fixed costs should come from fixed charges and the fixed charge
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component of tariff needs to be gradually increased in due course of time to
cover the actual fixed costs incurred by the licensee.
9.3.15 Further, it is proposed that the HT-Industrial consumers, running single shift
operation shall be levied 60% of applicable demand charges. Single shift
operation means running of operations at a stretch for maximum 10 Hrs. For
illustration, a consumer running 4hrs.in one stretch and 6hrs.in another stretch
cannot be considered as running in a single shift. However, a maximum of three
instances of running beyond 10hrs up to 12hrs is permitted in a billing cycle.
Consumer has to declare in advance about one shift operation. In absence of
such declaration, he shall be billed as per the applicable demand charges.
Billing will be done based on MRI/AMR Data. MSEDCL humbly requests the
Hon’ble Commission to charge 60% of approved fixed charges for single shift
consumers as proposed by MSEDCL
9.3.16 MSEDCL submits that the increase in Fixed/Demand Charges has been
proposed in line with the recommendations/discussions at various committees
such as Committee on Simplification & Rationalization of Tariff formed on the
advice of Ministry of Power (MoP), Government of India (GoI), to examine
issues relating to amendments in the Electricity Rules, 2005 as well as in
Consultation Paper on issues pertaining to Open Access by Ministry of Power
(MoP) issued in August 2017.
9.4
Revision in Billing Demand
9.4.1 Hon’ble Commission in its Tariff Order dated May 5, 2000 revised the definition
of billing demand to be the higher of the following for HT Consumers:
a)
Actual demand [During 0600 hrs. to 2200 hrs.]
b)
75%of the highest billing demand during preceding 11 months
c)
50% of the Contract Demand
d)
50 kVA
9.4.2 Subsequently, in its Tariff Order dated January 10, 2002 for FY 2001-02,
Hon’ble Commission observed that the minimum billing demand of 50 kVA may
not give the smaller industrial units any incentive to control their demand.
Hence, the Hon’ble Commission modified the formula for Billing Demand for HT
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industrial consumers, by removing the clause of ‘minimum 50 kVA’.
9.4.3 MSEDCL also submits that most of the Open Access consumers opt for partial
open access and do not reduce the Contract Demand. The Licensee is not
expected to purchase power for open access consumers.
9.4.4 Due to Universal Service Obligation, MSEDCL has to be ready with the
requisite power including the Contract Demand of the Open Access consumers.
Due to such obligation, power purchase planning becomes difficult and
MSEDCL has been paying fixed charges for the contracted power capacity.
Also the capacity blocking affects the overall tariff.
9.4.5 MSEDCL submits that the existing actual billing demand is much lower than the
contract demand (around 50%) and due to lower utilization of contract demand,
power planning becomes difficult and MSEDCL has to be ready with the
additional power to the extent of contract demand. MSEDCL further submits
that with higher contract demand and lower billing demand, the infrastructure is
not utilized properly, many times it gets blocked for few consumers and
optimum utilization of assets doesn’t take place. In some case even with lower
billing demand, additional infrastructure is required due to contract demand. If
the consumers keep billing demand as close as possible to the contract
demand, proper utilization would occur and thereby reducing the overall tariff.
9.4.6 MSEDCL further submits that the recovery from fixed charges as approved by
the Hon’ble Commission is also not happening due to restriction on billing
demand.
9.4.7 Considering the above, MSEDCL suggests that the Billing Demand definition
may be amended to as proposed. It is pertinent to note that MSEDCL’s billing
demand is low as compared to most of the States. State wise billing demand
definition is summarised in the following table.
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TN
MP
Gujarat
AP
Karnataka
(BESCOM)
Chhattisgarh
Actual
Demand
recorded
during
0600
hours to
2200
hours
Actual
Demand
Actual
Demand
Actual
Demand
Actual
Demand
Actual
Demand
Actual
Demand
75%
of
max
billing
demand
during last
11 month
90%
of
Contract
demand
90%
of
Contract
Demand
85%
CD
80% of
Contract
Demand
85%
of
Contract
Demand
75% of CD
MSEDCL
HT Category
Highest
of
50%
CD
of
100 kVA
of
60 kVA
LT Category
Highest
of
65%
of
the Actual
Maximum
Demand
recorded
during
0600
hours to
2200
hours
40%
CD
of
Contracted
demand
Actual
Maximum
Demand
Actual
Maximum
Demand
Actual
Demand
Maximum
Demand
recorded
Actual
Maximum
Demand
90%
CD
85%
CD
Contract
demand
Sanctioned
load
75% of CD
of
of
6kW
9.4.8 MSEDCL had earlier approached the Hon’ble Commission to revise the
definition of Billing Demand to Actual Maximum Demand recorded OR 85% of
the Contract Demand whichever is higher. However, in the MTR Order 195 of
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2017, the Hon’ble Commission did not accept MSEDCL’s prayer citing that:
“9.22.10. Accordingly, the Commission has revised the eligibility conditions for
applicability LF incentive, which would hopefully address the concerns raised
by MSEDCL. Hence, the Commission has not accepted MSEDCL’s proposal
for revision in definition of Billing Demand but has put restriction on the eligibility
of LF incentive; in case Billing Demand exceeds Contract Demand in any of the
time block duration through the day.”
9.4.9 MSEDCL humbly submits that though the Hon’ble Commission’s directive of
putting restriction on the eligibility of LF incentive has put a check on the misuse
of load factor incentive, it will not ensure the recovery of approved revenue from
fixed charges. It is noteworthy, that LF Incentive and Billing Demand are two
different issues. Billing demand is for recovery of cost of licensee whereas LF
Incentive is for effective utilisation of contracted demand. Only few consumers
are availing LF incentive as it mostly depends on manufacturing process and
to some extent operational strategy. In FY 2017-18, around 390 consumers
have availed the load factor incentives of Rs. 350 Crs. Hence the concerns of
MSEDCL still remain unaddressed.
9.4.10 MSEDCL therefore requests the Hon’ble Commission to consider the proposal
of revision in definition of billing demand suitably as given below:
LT
3 Phase
HT
Existing
Proposed
Maximum of
Maximum of
65% of actual MD recorded during 06 to
22 Hrs
OR
40% of the Contract Demand
Actual MD recorded in a billing
period
OR
60% of the Contract Demand
Actual MD recorded during 06 to 22 Hrs
OR
75% of the highest Billing Demand
OR
50% of the Contract Demand
Actual
period
MD recorded in a billing
OR
85% of the Contract Demand
9.4.11 The proposed changes in definition of Billing Demand shall also be applicable
to 3 Phase consumers under 0-20 kVA category in addition to those belonging
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to >20 kVA category.
9.4.12 MSEDCL submits that in view of the submission provided hereinabove,
MSEDCL has computed the revenue from proposed Fixed/Demand Charges
for HT & LT category for FY 20-21 to FY 24-25 considering the proposed
definition for billing demand.
9.4.13 MSEDCL requests the Hon’ble Commission to allow the revision in the
definition of Billing Demand so as to ensure the appropriate recovery from fixed
/demand charges.
9.4.14 MSEDCL also requests the Hon’ble Commission to approve the kVA based
Fixed Charges for 3 phase consumers having loads less than 20 kVA as
proposed by MSEDCL
9.5
Penalty for Contract Demand Violations
9.5.1 MSEDCL submits that in the last MTR Order dated 12th September 2018, the
Commission had given directives for penalties for violations of maintaining
contract demand and also stated that “Under these circumstances, the
consumer shall not be liable for any other action under Section 126 of the EA,
2003, since the penal additional charge provides for the penalty that the
consumer is liable to pay for exceeding his Contract Demand. In case a
consumer exceeds his Contract Demand on more than three occasions in a
calendar year, the action to be taken would be governed by the provisions of
the Supply Code Regulations.”
9.5.2 MSEDCL submits that, further to the issuance of the MTR Order, the Hon’ble
Commission also issued Order No. 60 of 2018 dated 1st January 2019 invoking
the inherent power to remove difficulty under Supply Code Regulations 2005.
The Commission in the said Order had noted the difficulty of MSEDCL to give
effect to the specific provision of the MTR Order when read with Supply Code
Regulations and therefore, could not take appropriate action against the
consumers who regularly and intentionally breach their contract demand. In the
said Order, the Commission ruled that “ Distribution Licensee can enhance the
Contract Demand of the consumer when the consumers exceeds the contract
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demand on more than three occasions during a calendar year, irrespective
whether the Consumer submits an application for the same or otherwise.
However, before such revision of Contract Demand, Distribution Licensee must
give 15 days’ notice to such consumer”
9.5.3 In line with the same, MSEDCL had issued Commercial Circular No. 312 for
implementing the provisions of the said Order. MSEDCL further submits that
the consumer should be charged with the tariff applicable to the slab to which
he actually belongs. i.e. If a consumer utilises demand for say more than 20
kVA, then he should be charged with the tariff applicable to the sub-slab of >20
kVA only and so on. However, it is observed that some consumers opt for
demand upto 20 kVA and actually utilises demand more 20 KVA. Therefore, he
should be charged with tariffs for more than 20 kVA slab only. Therefore all
such consumers should be charged with the tariffs applicable to the slabs in
which its recorded demand falls. There is lack of clarity on this issue and due
to which some of the LT consumers are raising disputes and approaching
various Forums such as CGRF, Ombudsman etc. against charging such tariffs.
In Order to bring explicit clarity, MSEDCL hereby submits that the said
stipulation regarding penalty for exceeding contract demand may be revised as
proposed below:
In case a consumer exceeds his Contract Demand, he will be billed at the tariff
applicable for the respective load slab approved by the Commission, in which
recorded demand falls for that billing cycle only and also be charged an
additional amount at the rate of 150% of the applicable charge for the Demand
in excess of the Contract Demand.
Further Distribution Licensee can enhance the Contract Demand of the
consumer when the consumers exceeds the contract demand on more than
three occasions during a calendar year, irrespective whether the Consumer
submits an application for the same or otherwise. However, before such
revision of Contract Demand, Distribution Licensee must give 15 days’ notice
to such consumer. Also the Consumer is liable to pay the necessary charges
as may be stipulated in the approved Schedule of Charges for the revised
Contract Demand.
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January 20
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9.6
kVAh Based Billing
9.6.1 There are two components of electric power, active and reactive. The active or
real power is actually consumed and converted into useful work for creating
heat, light and motion and is measured in kilo Watt (kW) and is totalized by the
energy meter in kilo watt hour(kWh). The reactive power is measured by kilo
Volt Ampere Reactive (kVAR) and is totalized by the energy meter in kiloVolt
Ampere Reactive hour (kVARh). This power is used to provide the
electromagnetic field in inductive and capacitive equipment.
9.6.2 The reactive power occupies the capacity of electricity network and reduces the
useful capacity of system for generation and distribution. The source of most
reactive currents is the poor power factor loads (equipment) connected at
consumer premises. As these loads are not compensated by appropriate
capacitor installations by consumers, utilities are burdened for installation of
capacitors.
9.6.3 Reactive power is a local phenomenon and the extra reactive compensation by
industrial consumers in MIDC/ Industrial area cannot be used / compensated
against extra reactive energy drawl by agricultural section. As a result, in both
situations, system stability of Distribution Company is hampered. It is thus
imperative that every section of consumers has to shoulder their responsibility
to maintain the system PF within permissible limits only.
9.6.4 The most effective remedy to remove such anomaly is to introduce kVAh billing.
Introduction of kVAh metering and kVAh tariffs is therefore seen as a
commercial inducement to consumers to ensure a smaller electricity bill by
ensuring that they do not draw reactive power. It is considered that these
consumers will in turn use efficient devices with power factor correctors or
install capacitors at their premises.
9.6.5 The Forum of Regulators (FoR) in its report on “Metering Issues” August, 2009,
has stated that kVAh billing is the new trend in electricity billing, which is
adopted worldwide. In the report they have strongly advocated to adopt kVAh
billing in India on account of following reasons.
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a) kVAh Metering is a check on power factor.
b) It will encourage consumers to use reactive energy compensators to control
the voltage at their intake point and maintain unity power factor.
c) The accepted threshold limit of power factor is unity. There need not be any
penalty exemption for power factor neither lagging nor leading. Thus kVAh
billing merits consideration over power factor penalty.
9.6.6 The Hon’ble Commission in MYT Regulations, 2019 has provisioned for kVAh
billing. Regulations 73.2 states that “Wheeling Charges of the Distribution
Licensee shall be determined…..
Provided that the Wheeling Charges may be denominated in terms of
Rupees/kWh or Rupees/kVAh or Rupees/kW/month or Rupees/kVA/month, for
the purpose of recovery from the Distribution System User,…”
9.6.7 It is pertinent to mention that kVAh billing has already been adopted in some of
the state in India as per orders of respective SERCs details of which are as
below:

HP: HPERC Order dated 18.09.2001.



Delhi: DERC in 2001.
Jammu &Kashmir: Order dated 28.03.2007.
AP: APERC Order dated 30-03-2011.


Haryana: HERC Order dated 25.07.2012
UP: UPERC Tariff order dated 31.05.2013.


Punjab: PERC order dated 22.08.2014.
Chhattisgarh : Chhattisgarh ERC Tariff order dated 23.05.2015

Bihar: BERC order dated 21-03-2016.
9.6.8 Category wise status of applicability of kVAh billing for various states is
tabulated as below.
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Category
AP
CG
Delhi
Haryana
J&K
UP
Bihar
Industrial







Commercial







Railways







Agriculture


×
×

×

PWW/LIS



×



Temporary



×

×

Bulk Supply


×




Start up
×

×
×
×
×

×
×
×
×
×
×
×
Non
Domestic
/Commercial
*
×
*
$
×
×
×
PWW

×
*
×
×
×

Agriculture
×
×
×
×
×
×
×
#
×
*

×
×

×
×
×
×
×
×
×
HT
LT
Domestic
Industrial
Street Light
$ >20 kW/20 kVA
*>10 kW#
> 15kW
kVAh Tariff Applicable
9.6.9 The Prime Objective of the kVAh based billing is to encourage the consumers
to maintain near unity Power factor to achieve loss reduction, improve system
stability, power quality and improve voltage profile. At the national level,
emphasis is being given to Energy conservation, energy efficiency and Demand
Side Management (DSM) and green energy solutions to optimize the energy
usage. By kVAh billing, the consumers will be encouraged to adopt energy
efficiency programs and will be benefited by reduced electricity bills.
9.6.10 Moreover, due to improvement of Power Factor (nearer to unity), the
consumer’s demand may get reduced and also the kVAh billing will be
correspondingly reduced in turn improving system voltage. The improvement in
Power Factor will reduce the licensee’s expenditure on Power Purchase and
thereby the consumers will be benefited with lower tariff. If in case, the Power
Factor is less than unity, the consumption recorded in respect of kVAh would
MSEDCL
January 20
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be high compared to kWh consumption. Thus, the kVAh based billing will drive
the consumers to reach unity power factor. Ultimately, kVAh billing will be
providing inbuilt incentive, which will automatically take care of power factor
incentive and disincentive.
9.6.11 Legal & Regulatory provisions:
A) Relevant APTEL judgments in the subject matter:
Hon’ble Appellate Tribunal for Electricity, New Delhi in the matter of Prime Ispat
Ltd., Mahamaya Steel Industries Limited and Chhattisgarh State Electricity
Regulatory Commission, in its judgment dated 10th April 2015 in Appeal No.
263/2014 had observed advantages of High Power Factor and kVAh billing.
The relevant extracts of the same are reproduced below:
“……
a) Higher the power factor, lower is the load current and thereby technical
losses of the transmission lines i.e. I²R losses will be reduced
considerably.
b) Due to increase of Power Factor (nearer to one), the consumer’s
demand charges will be reduced and also the kVAh billing will also be
correspondingly reduced.
c) The Higher Power Factor will reduce the demand on the system and
improve the systems Voltage.
d) Increases the available transmission and distribution system capacity.
e) The improvement in Power Factor will reduce the licensee’s expenditure
on Power Purchase and thereby the consumers will be benefited with
lower tariff.
f) In view of the above, most of the States are changing their billing system
from kWh to kVAh billing system. The learned counsel of the Appellant
has contended that due to kVAh billing, bill amount has been increased
and thereby the Appellant burdened with higher power bill. We do not
find any merit in the contention for the following reasons:
Because Power Factor = kWh/ kVAh
If Power Factor is unity, then kWh = kVAh
In the instant case, the Power Factor is less than unity and hence the
MSEDCL
January 20
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consumption recorded in respect of kVAh is high compared to kWh
consumption. Further, the power factor surcharge/rebate will not be
there in kVAh billing. Thus, the kVAh based billing will drive the
consumers to reach unity power factor and thereby the system
performance will be improved and also reactive power drawal from the
system will be minimised and thereby better system voltages for the tail
end consumers also.…”
9.6.12 The Hon’ble ATE, in appeal No. 130 of 2005 between South East Central
Railways, Chhattisgarh Versus Chhattisgarh State Electricity Board has upheld
the decision of the State Commission in introducing kVAh billing, relevant
extract of the same is reiterated below:
“kVAh billing which provides inbuilt incentive for the Appellant’s category, which
will automatically take care of power factor incentive and disincentive for the
high and low power factor respectively”
9.6.13 MSEDCL in its MTR Petition had requested the implementation of kVAh billing
and Hon’ble Commission in the MTR Order in Case no.195 of 2017 dated 12th
September, 2018 ruled as follows:
“.. 9.23.11. The Commission has taken a note of Petitioner’s proposal for
adoption of kVAh-based billing for HT consumer categories. The Commission
is of the view that the kVAh billing may not be appropriate at this time of juncture
as it has to be done in a gradual manner to avoid any tariff shock due to such
change. MSEDCL may submit its proposal for kVAh billing in next control
period. The Commission intends to implement kVAh billing to all HT consumer
and LT consumers having load above 20 kW from 1 April, 2020. All Distribution
Licensees in State are required to take necessary steps such as meter
replacement, if required, preparedness of billing software etc. Also, wherever
possible, Distribution Licensee shall start collecting category-wise energy
consumption details in kVAh terms and submit it during the next Tariff
determination process. Though the Commission agrees that the benefits and
its technical superiority for measuring energy, it is felt that sufficient time needs
to be given to MSEDCL and also the consumers to change over the billing kVAh
MSEDCL
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method. The Commission directs MSEDCL to educate the consumers and take
all necessary steps to ensure that all the consumers are billed by kVAh method
from the next MYT i.e. from 1st April 2020.”
9.6.14 In line with the above directive of the Hon’ble Commission, MSEDCL has taken
the following steps to ensure effective implementation of kVAh billing from 1st
April 2020.
9.6.15 Consumer Awareness: MSEDCL has conducted awareness programs across
the State and explained the concept of kVAh billing and its implications to
various Industrial Category consumers. During these program, different
aspects of the proposed kVAh billing were discussed and deliberated upon.
During these Programs, a Power Point Presentation (PPT) was presented to
the participants. Further queries of consumers regarding kVAh billing were
addressed during these interactive sessions. The Power Point Presentation is
attached as Annexure 7 to this Petition. In line with the above directive of the
Hon’ble Commission, MSEDCL has proposed the kVAh Billing. MSEDCL
conducted these program from sub division officer level to the Director level i.e.
Management level. Around 100 such awareness camps were organised at
various places across the State. FAQs on kVAh billing were uploaded on the
MSEDCL website and on 2nd February 2019, MSEDCL emailed Letter informing
proposed implementation of kVAh billing from 1st April 2020 to all HT consumers
having email IDs registered with MSEDCL.
9.6.16 MSEDCL submits that for Implementation of kVAh billing program, MSEDCL
has already initiated meter replacement drive. Replacement of meters for HT
consumers will be completed by January 2020. Net meter and OA consumer
meters programing will be done before March 2020. Subsequently, the LT
consumer meters will also be replaced in a phased manner so as to enable
kVAh billing for LT consumers during the Mid-Term Review process in
accordance with the readiness of such implementation. Meters of all the LT
consumers, will be changed or programmed for kVAh reading by March-2021.
9.6.17 The progress for kVAh billing meter replacement status of HT consumers as
follows:
MSEDCL
January 20
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Meter
Balance to be
Replaced
Replaced
TARGET
19043
18690
353
MONTHLY PLAN
Dec-19
Jan-20
100
253
24000 HT Meters are procured; programing of Open Access (ABT Meters) &
Solar Consumers will be done before March 2020 to have kVAh reading with
actual PF, TD Consumer Meters will be replaced while Reconnection; 359
Meters under Bhiwandi franchisee Area kVAh compatible.
The progress for kVAh billing meter reprograming of LT (>20 kW) consumers
as follows:
LIVE
CT
ABOVE OPERATED EMBEDDED
EMBEDDED
Embedded
20 kW
METER
METERS in
METERS TO
Meter
IN
consumers
billing
BE REReplaced
BILLING
in billing
system
PROGRAMMED
till Date
SYSTEM
system
CATEGORY
INDUSTRIAL
COMMERCIAL
OTHER
TOTAL LT
Meters
63072
29013
29936
25863
16393
24116
37209
12620
5820
18317
7093
5026
18892
5527
794
122021
66372
55649
30436
25213
The Reprograming target and plan is as below:
REPROGRAMMING
IND
18317
COMM OTHER
7093
TARGET
REPROGRAMMED
METER TO BE
REPROGRAMMED
30436
5312
25124
5026
MONTHLY PLAN
Dec-19
Jan-20
Feb-20
Mar-20
3000
7376
7374
7374
The Progress for kVAh billing meter replacement status of LT (>20 kW)
MSEDCL
January 20
196
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consumers as follows:
CATEGORY
INDUSTRIAL
TARGET
(NONDeckVAh
19
METERS)
25863
2000
MONTHLY PLAN
Jan20
Feb20
Mar20
7955
7955
7953
COMMERCIAL
16393
866
5176
5175
5176
OTHER
24116
0
0
0
0
TOTAL
66372
2866
13131 13130 13129
Apr20
May20
Jun20
Jul20
Aug20
Sep20
4020
4020
4020
4020
4020
4016
4020
4020
4020
4020
4020
4016
9.6.18 At present, MSEDCL has not done any change in the Billing software, however,
same will be done as per Hon’ble Commission’s Order within one month.
However metering specifications are changed to measure kVAh and kVA MD
considering rkVAh (Lag & Lead). Software updation of OA consumer meters
also will be done as per Hon’ble Commission’s Order within one month.
9.6.19 MSEDCL further submits that it shall strive to complete metering/programming
all HT Consumers latest by March 2020. However, in case the
replacement/programming is not done for any consumer, then the existing
methodology to derive the kVAh shall be used for kVAh billing of those
consumers. MSEDCL is committed to provide the kVAh Meters to all
consumers for whom kVAh billing shall be applicable and it shall complete the
activity of providing meters on priority.
9.6.20 Energy Consumption Details: As directed by the Hon’ble Commission,
MSEDCL has collected category-wise energy consumption details in kVAh and
kWh for HT category consumers. Details of the same are provided below.
Table 185: Category-wise energy consumption details in kVAh and kWh
Categories
HT – Industry
HT – Commercial
HT - Railways/Metro/Monorail Traction
MSEDCL
Apr-19 to Oct-19
MkWh
MkVAh
Consumption
Consumption
19,161
19,482
1,280
1,318
47
48
January 20
PF%
98%
97%
97%
197
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Categories
HT - Public Water Works (PWW)
HT – Agriculture
HT - Group Housing Societies (Residential)
HT - Public Services
HT – Electric Vehicle Charging Station
Apr-19 to Oct-19
MkWh
MkVAh
Consumption
Consumption
1,110
1,152
733
801
124
128
643
658
3
3
PF%
96%
91%
97%
98%
99%
9.6.21 MSEDCL requests the Hon’ble Commission to allow gradual implementation of
kVAh billing consisting of the first stage of rollout to HT consumers. Many States
started billing in kVAh initially for HT category consumers only. In line with the
same, MSEDCL proposes the kVAh based billing to HT category initially
considering the higher awareness about the advantages of maintaining PF
among HT consumer groups. The kVAh billing will be proposed for the LT
consumers subsequently in the next Mid-Term Review Petition.
9.6.22 MSEDCL would also like to submit that implementation of kVAh billing is a move
to encourage consumers to adopt energy efficient programs and for the overall
benefit of the sector. The same has already been implemented in various states
and the Hon’ble Commission may allow MSEDCL to be the initiator of the same
and implement the same in MSEDCL area. MSEDCL feels that other Licensees
in the State may take the decision depending upon their readiness, the
implementation may not be linked to the readiness of all Licensees in the State.
If any Licensee requests the Hon’ble Commission for implementation of kVAh
billing, it should be considered irrespective of the stands taken by other
Licensees. MSEDCL once again requests the Hon’ble Commission to allow the
gradual implementation of kVAh billing for its consumers.
9.6.23 Regarding abolition of PF incentive, MSEDCL would like submit that Hon’ble
APTEL has already ruled that “kVAh billing which provides inbuilt incentive for
the Appellant’s category, which will automatically take care of power factor
incentive and disincentive for the high and low power factor respectively”.
MSEDCL further submits that the principle of revenue neutrality is being
followed in implementing the kVAh tariff so that both the Licensee as well
MSEDCL
January 20
198
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
consumers are not burdened unnecessarily. kVAh billing system is a more
accurate and cost effective system to extend uniform incentives/penalties on
account of low or good power factor and is also prevalent in many States. Tariff
determined in kVAh shall be less than kWh tariff by the average power factor.
9.6.24 MSEDCL further submits that some of the consumers who have already spent
money to maintain power factor, will have an added advantage as they already
have the resources to maintain higher power factor which will benefit them in
terms of reduced consumption.
9.6.25 Regarding kWh as a unit for sale of electricity specified in the MYT Regulations,
MSEDCL submits that even though the MYT Regulations specify unit of
generation or sale as kWh, the same MYT Regulations provide for Rs./kVAh as
one of the unit for Wheeling Charges.
9.6.26 MSEDCL would like to submit that even though power purchase is done in
terms of kWh, as per the CERC Grid Code Regulations 2010 as amended from
time to time, reactive charges (present rate 14.05 paise/kVArh) are payable
depending on the system conditions. The relevant Regulation is reproduced
below:
6.6 (2)The charge for VArh shall be at the rate of 10 paise/kVArh w.e.f.
1.4.2010, and this will be applicable between the Regional Entity, except
Generating Stations, and the regional pool account for VAr interchanges. This
rate shall be escalated at 0.5 paise/kVArh per year thereafter, unless otherwise
revised by the Commission.
9.6.27 MSEDCL submits that for Open Access Consumers, Special Energy Meters
(SEMs) are installed at all consumers sourcing power through Open Access.
SEM records kVAh in 15 minutes time block. At unity power factor MW=MVA,
thus the settlement of scheduled power in kVAh with consumer’s consumption
in kVAh in the corresponding 15 min slot can be done.
9.6.28 In view of the submissions in the foregoing paras, the steps taken by MSEDCL
and various advantages as listed below, MSEDCL is proposing to adopt kVAh
billing presently for HT category consumers. Simultaneously the PF incentive
MSEDCL
January 20
199
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Provisional True Up For FY 2019-20 and
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for these categories shall be withdrawn from FY 2020-21 onwards.
a) The kVAh based billing has an inbuilt incentive/penalty mechanism and
therefore separate mechanism for the same is no more required. It will
encourage the consumers to improve the power factor by way of reactive
power compensation at the load point itself.
b) With the better power factor, the line loading shall be lower for the same kW
requirement leading to lower transmission as well as distribution losses.
c) Benefit of kVAh billing is passed on to the consumers by way of reduction
in energy charges or lower increase which would have been more in case
of kWh billing.
d) Power supply quality will be improved.
e) It is win-win proposal for both - the consumers and MSEDCL.
9.6.29 In view of the above Hon’ble Commission is humbly requested to approve the
kVAh based billing for the HT Consumers.
9.6.30 In view of the proposed kVAh billing, the power factor incentive and penalty
shall not be applicable for HT Category consumers. However, the existing
provisions for power factor incentive and penalty shall continue to be applicable
for LT Category consumers as per the relevant Orders of Hon’ble Commission.
9.7
Recording of Maximum Demand
9.7.1 It has been observed that certain consumers are taking the benefit of lacunae
in system of block window method of Maximum Demand recording and thereby
getting the benefit of lower MD recording.
9.7.2 As per the Regulation 2.1 (p) of the MERC (Electricity Supply Code and Other
Conditions of Supply) Regulations 2005, the maximum demand (MD) means
twice the largest number of kWh or kVAh supplied and taken during any
consecutive thirty minute blocks in that period. Same definition of ‘Maximum
Demand’ is also provided by Hon’ble Commission in MTR order dated 12 th
September 2018 (case No 195 of 2017).
9.7.3 MSEDCL submits that “IS 14697” is INDIAN STANDARD for AC static CT/PT
operated Energy meters and specifies about the Demand integration period i.e.
MSEDCL
January 20
200
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15 or 30 min.
9.7.4 MSEDCL submits that CBIP’s “guide on Static energy meters- Specification and
testing” has mentioned two methods i.e. block & sliding window method for
determination of the MD. In sliding window method determination of the MD is
based on 30 min DIP (Demand Integration Period). Here the 30 min period is
not fixed as in case of the block window. In block window method the MD is
determined over a fixed time slot of 30 min i.e. from 10:00 to 10:30 hrs. 10:30
to 11:00 hrs.…..so on. The new Demand Integration Period (DIP) starts only
after the end of previous DIP.
9.7.5 In block window method the MD is integrated over a fixed block of time as per
meter clock, i.e. from 10.00 to 10.30 hrs or 10.30 to 11.00 hrs. In this method
there is one disadvantage i.e. consumer with higher demand can split his load
in two consecutive time slots such that the demand is split in two blocks and
MD recorded is less than the actual load on the system. This splitted high load
than sanctioned contract demand is harmful to the Grid and pose difficulties to
Distribution Company for meeting Demand. Hence sliding window method is
incorporated in new meters to determine demand more accurately, which is
complying with the MERC regulations, Tariff Order, IS and CBIP standards.
9.7.6 In the revised methodology of determination of Maximum demand, the Demand
Integration Period (DIP) of consecutive 30 min as specified in the MERC
(Electricity Supply Code and other Conditions of Supply) Regulation 2005 is
maintained and considered for measuring, recording & billing the Maximum
Demand of consumer and is in line the IS and CBIP Guide.
9.7.7 Further, FAQs regarding kVA Maximum Demand Calculation are available on
MSEDCL’s website.
9.7.8 MSEDCL has installed new technology meters with a sliding window for
recording maximum demand in consecutive 30 minutes block. The 30 min
demand integral period is sliding consecutively with 10 min sub-interval has
been used.
MSEDCL
January 20
201
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Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
9.8
Revision in Load Factor Formula
9.8.1 The Hon’ble Commission in the last MTR Order dated 12 th September 2018,
had acknowledged the issue of wilful violation of Contract Demand during 22:00
to 6:00 Hours to avail ToD benefits & Load Factor Incentive and observed that
“In order to ensure secure operation of electricity grid, it is critical that every
constituent of the system acts within its assigned boundaries. Intentional
violation of Contract Demand limit by individual consumer for its own financial
gain may lead to a system failure, which may affect other consumers.”
Accordingly the Hon’ble Commission revised the provision and ruled that LF
incentives shall not be available in case of exceeding Contract Demand during
night also.
9.8.2 Further, as per the Order dated 24th December 2018 in Case No. 321 of 2018,
Hon’ble Commission revised the LF incentive formula for PF and now the Unity
Power Factor is considered instead of actual PF.
9.8.3 The concept of LFI was introduced by Hon’ble Commission in Case No. 2 of
2003 i.e. nearly 16 years ago. Since then till date, there have been numerous
disputes with regards to the interpretation of the LF formula. Consumers are
approaching MSEDCL with the demand of consideration of interruption/nonsupply hours and shut down more than 60 Hours because of unforeseen
incidents like water logging in EHV Substation, Flood situation etc. However,
as per Formula only planned outage (since 60 hours in a 30 day month is
already in built in the Formula) is considered for reduction in hours for
calculation of Load Factor. This ultimately results into disputes before CGRF or
Hon’ble Commission.
9.8.4 MSEDCL submits that the change in LFI computation is sought with the
intention of bringing clarity and simplification in the LFI formula. MSEDCL
submits that any shutdown (planned outage), breakdown or any interruption of
supply to the extent of 60 Hrs. in a month has to be considered while framing
the calculation for Load Factor Incentive. This means, in the 60 Hrs, the effect
of non-supply to the extent of 60 Hrs is built in and will not have additional effect
while calculating LF whereas any non-supply beyond 60 Hrs will be considered.
MSEDCL
January 20
202
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Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
9.8.5 MSEDCL further submits that since the introduction of LF incentive, in the
calculation of Load Factor as per the methodology adopted by Hon’ble
Commission, 60 Hrs have been deducted towards interruption/non-supply in a
30 day month. As per formula of LF incentive, maximum incentive of 15%
become available at 92.5%. It means non-supply including interruption up to 60
hours are inbuilt in the formula.
9.8.6 In view of the above submission, 60 Hrs of non-supply should include any type
of break down, interruptions, maintenance, planned shut-down etc.
9.8.7 MSEDCL further submits that sometimes due to natural calamity such as floods
or cyclones, there is non-supply for more than 60 hours or sometimes more
than few days. However, lack of clarity on how to treat planned outages resulted
into various disputes. There is a need to bring in more clarity in the Formula for
treatment of shut downs/planned outages. Therefore, it is proposed not to
deduct any non-supply upto 60 Hours including planned shut down for
calculating the load factor, whereas, any non-supply more than 60 Hours will
be deducted while calculating the load factor. Hence, MSEDCL proposes
following formula:
Consumption during the month in MU
Load Factor =
Maximum Consumption Possible during the month in MU
Maximum consumption possible = Contract Demand (kVA) x Unity Power
Factor x Total no. of hours during the month less non-supply hours beyond 60
hrs. (Irrespective of planned or un-planned load shedding)
In case the consumer exceed its Contract Demand in any particular month, the
Load Factor Incentive will not be payable to the consumer in that month
9.8.8 Alternatively, if Hon’ble Commission deems fit, the 60 Hours may be reduced
to Zero Hours by reducing the incentive and actual non-supply hours shall be
excluded from the computation of load factor. This will protect the consumer
interest and he will not lose the incentive due to non-supply from
MSEDCL/MSETCL. Load Factor incentive will be based on his own
performance and this will help in reducing the litigations.
MSEDCL
January 20
203
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
9.8.9 It is pertinent to note that due to such revision, the Load Factor of the
consumers will improve and many consumers presently not getting the load
factor incentive may get the Incentives for Load Factor achievement.
9.8.10 Hence, in both the proposed cases as above, the maximum incentives shall be
limited to 7.5% and the proposed applicability of Load factor Incentive is as
follows:
 Load factor above 75% and upto 85% - incentive of 0.25% on the energy
charge for every 1% rise in load factor from 75% to 85%.

Consumers having load factor above 85% - incentive of 0.50% on the
energy charge for every 1% rise in load factor from 85%.

The total incentive will be subject to a ceiling of 7.5% of energy charges
applicable to the consumer.
9.8.11 Load Factor Calculation with proposed changes
Base data Assumed for case studies
consumption during month
Units
CD kVA
500000
1000
MSEDCL
PF
1
Existing Method
Proposed Method
Total
interruptions
during the
Month in Hrs
Hours
consid
ered
for
deducti
on
Load
Fact
or
Hours
consider
ed
for
deductio
n
Loa
d
Fact
or
MSETCL
Breakdo
wn in Hrs
Plann
ed
Outag
e
in
Hrs
Brea
kdo
wn
in
Hrs
Plann
ed
Outa
ge in
Hrs
1
2
3
4
5=1+2+3+4
6
7
8
9
30
30
0
10
0
10
25
20
55
70
0
10
69%
70%
55
70
75%
77%
Scenario
CASE 1
CASE 2
Total number of
hours
during
month
720
MSEDCL
January 20
204
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
MSEDCL
Scenario
Breakdo
wn in Hrs
CASE 3
CASE 4
9.9
40
10
Existing Method
Proposed Method
Total
interruptions
during the
Month in Hrs
Hours
consid
ered
for
deducti
on
Load
Fact
or
Hours
consider
ed
for
deductio
n
Loa
d
Fact
or
110
100
50
90
75%
79%
110
100
82%
81%
MSETCL
Plann
ed
Outag
e
in
Hrs
50
90
Brea
kdo
wn
in
Hrs
20
0
Plann
ed
Outa
ge in
Hrs
0
0
Rebate for Incremental Consumption
9.9.1 MSEDCL in its MTR Petition had proposed to provide incentive to the existing
HT consumers for incremental consumption, with a rebate of Rs.1 /kVAh in
energy charges for additional consumption over a threshold limit, provided the
effective variable charge of such consumer should not be less than Rs.4 Per
kVAh after considering all charges, rebates, incentives etc.
9.9.2 Hon’ble Commission its MTR Order dated 12th September 2018 has observed
that encouraging incremental consumption by way of discount would be good
idea, particularly, in surplus power scenario and contracted capacity is available
in excess which otherwise would be subjected to backing down. However,
Hon’ble Commission further opined that providing such rebate during mid-term
review process would not be proper. Hence, Hon’ble Commission ruled that the
same can be considered along with next filing for new Control Period with
detailed scheme and cost/benefit analysis of such scheme.
9.9.3 Further, the Hon’ble Commission in Regulation 81.4 of MYT Regulations 2019
provides for such rebates. “The Distribution Licensee may propose other
rebates for inter-alia, taking supply at higher voltages, bulk consumption, power
factor, etc., as a part of their Petition, and the revenue impact of rebates shall
be passed on through the Aggregate Revenue Requirement and tariffs, subject
to the Commission’s approval.” However, this rebate should not be considered
under Regulation 81.5 of the MYT Regulations 2019. MSEDCL requests the
Hon’ble Commission to allow this rebate as a part of the ARR. The impact
MSEDCL
January 20
205
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
assessment
of
incremental
consumption,
estimate
consumer/consumption base etc. have been illustrated below.
of
eligible
Coswt Benefit Analysis
Sales due to incremental consumption
Average Billing Rate of HT Consumers
Rebate Given for Incremental Consumption
Net ABR for HT Consumers
Total revenue from incremental sales
UoM
MU
Rs/unit
Rs/unit
Rs/unit
Rs Cr.
FY 2020-21
2,424
9.12
1.00
8.12
1,969
FY 2021-22
1,318
9.31
1.00
8.31
1,094
FY 2022-23
1,392
9.49
1.00
8.49
1,181
FY 2023-24
1,472
9.66
1.00
8.66
1,275
FY 2024-25
1,561
9.81
1.00
8.81
1,376
Purchase quantum for incremental sales
Marginal Variable Cost of Power Purchase
Total Cost for incremental sales
Total Benefit
MU
Rs/unit
Rs Cr.
Rs Cr.
2,621
3.00
786
1,183
1,425
3.00
427
667
1,505
3.00
451
730
1,592
3.00
478
798
1,687
3.00
506
869
9.9.4 Thus for incremental sales due to such subsidising consumers, MSEDCL would
get additional revenue.
9.9.5 Accordingly, MSEDCL hereby proposes to provide incentive to HT consumers
for incremental consumption, with a rebate of Re.1 /kVAh in energy charges for
additional consumption over a threshold limit. The consumers have to pay the
fixed and wheeling charges as may be applicable to that category. The criterion
for allowing the rebate shall be as under:
a) The rebate shall be applicable to HT Industries, HT Commercial, HT Public
Services and HT Railways/Metro/Mono.
b) The rebate shall be given only to those consumers who source their entire
power from MSEDCL.
c) The rebate shall be for a period of five years subject to reconsideration
during the mid-term review.
d) The rebate shall be allowed to consumers, who consume power above
threshold limit. The total consumption in financial year FY 2018-19 by the
consumer shall be considered as baseline consumption.
e) In case, period is less than one year, baseline consumption shall be worked
out on prorate basis;
f) The billing at the reduced rates after allowing the rebate shall be done once
the consumer crosses the baseline consumption. e.g. if a consumer’s total
annual consumption in FY 2018-19 was 10,000 units, the consumer shall
be entitled for a rebate of Rs. 1/kVAh for consumption exceeding
consumption of previous year (not below the baseline consumption of
10,000 units) in FY 2020-21 onwards.
g) The amount of rebate shall be adjusted in the Consumer’s bill after
MSEDCL
January 20
206
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Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
completion of the Financial Year.
h) The rebate shall be over and above the existing rebates subject to the fact
that the consumer’s total variable charges should not be less than Rs. 4 per
kVAh after accounting all applicable rebates.
i) This rebate would also be applicable to open access consumers who shifts
their entire demand to MSEDCL
9.9.6 MSEDCL submits that such incentives on incremental consumption is prevalent
for Industrial, Non-Industrial and Shopping Malls categories in Madhya Pradesh
and the relevant clause (6.12 -xii of MPERC Tariff Order FY19-20) for the same
is reproduced as “A rebate of Re. 1 per unit in energy charges is applicable for
incremental monthly consumption w.r.t corresponding month of FY 2015-16.”
9.9.7 MSEDCL submits that in order to reduce the burden of fixed charges on
common consumers of MSEDCL, there is a need to promote the consumption
from MSEDCL. Apart from optimum utilisation of all sources of power, MSEDCL
will also get additional revenue from the subsidising HT categories. MSEDCL
further submits that, benefit of increased revenue as a result of increased
consumption will get passed through in tariffs during future truing up. This will
be a win-win situation for all stakeholders including consumers. Hence,
MSEDCL requests the Hon’ble Commission to approve the above proposal and
consider the said rebate as a part of ARR.
9.10 Prepaid Meter Rebate
9.10.1 It was difficult for MSEDCL to persuade the consumers to shift to pre-paid
metering in the absence of any discount. Further to this, activities like meter
reading, preparation and distribution of bills and payment collection takes
considerable time and the costs associated with such processes is a significant
amount that is being charged to the consumers. If prepaid meter is opted by the
consumers, such costs will decrease and hence the consumers get benefited.
In view of this, the Hon’ble Commission in its Tariff Order as dated 12th
September 2010 (in Case No. 111 of 2009) has approved prepaid meter rebate
of 5%.
9.10.2 MSEDCL submits that the consumers paying regular bills within the timelines
MSEDCL
January 20
207
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Provisional True Up For FY 2019-20 and
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stipulated get prompt payment discount of 1%. Further, for normative working
capital, the Hon’ble Commission provides interest rate of about 8%-10% p.a.
which is less than 1% per month. For Security Deposit the Hon’ble Commission
provides interest at Bank Rate which is 6 to 6.50% p.a. Further, the interest
rates provided for bank deposits are also in the range of 6%-8% per annum. In
view of the same, MSEDCL submits that the existing discount of 5% is much
high which comes to 60% per annum which was initially given as promotional
activity and there is a need to correct the same.
9.10.3 The rebate appears to be quite high and considering saving in cost from
implementation of prepaid meters, MSEDCL proposes to reduce the prepaid
meter rebate to 2% of the consumer’s total monthly bill. MSEDCL also submits
that even after reduction to 2%, it is still attractive and higher than prompt
payment discount.
9.10.4 MSEDCL humbly requests the Hon’ble Commission to allow the Prepaid Meter
Rebate as proposed above.
9.11 kVA based Fixed Charges for Loads < 20 kW & consideration of Load in
kVA instead of kW
9.11.1 MSEDCL submits that presently tariff is categorised as per the Sanctioned Load
in kW. For categories such as LT Commercial, LT Public Services and LT
Industrial, the fixed charges for 0-20 kW are based on Rs./Connection/Month.
The consumers above 20kW in these categories are billed on the contract
demand basis (kVA) of the consumer i.e. Rs./kVA/Month. Hence it is necessary
to divide categories as per contract demand of the consumer. Following cases
highlights the necessity for contract demand as a basis for categorisation.
Case 1:- If consumer having 20 kW sanctioned load uses the same load at 0.7
P.F. then demand of the consumer will be =20/0.7=28.57 kVA.
Case 2 :- If consumer having 25 kW sanctioned load uses the same load at
Unity P.F. then demand of the consumer will be =25/1=25 kVA.
9.11.2 In Case 1 consumer uses more contract demand than Case 2 but still gets billed
MSEDCL
January 20
208
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Provisional True Up For FY 2019-20 and
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Main Petition
at only fixed charge of Rs./Connection/Month because of sanctioned load is
below 20 kW. Hence it is necessary to correlate slabs of tariff in kVA also.
9.11.3 In view of the above, MSEDCL suggests that the sub slabs in the 3 Phase LT
Categories (wherever applicable) needs to be on the basis of kVA only. Based
on the recorded demand, the consumer shall be billed on Rs./kVA/Month for
that month and if the consumer crosses the 20kVA limit on three instances in a
year, he shall be categorized in higher slab permanently. Before, such revision,
MSEDCL shall give 15 days’ notice to such consumer. MSEDCL shall
implement the higher slab tariffs in the next billing cycle. Hon’ble Commission
has given similar ruling in the Order dated 1st January 2019 in Case No. 60 of
2018. However, if the consumer is willing to reduce its demand back to the
previously allocated demand, then MSEDCL would monitor the load of the
consumer for 3 consecutive months before switching it back to the previously
allocated lower tariff category. Further, all consumers shall be charged for
minimum demand of 1 kVA even if a consumer’s demand is below 1 kVA.
9.11.4 In a similar note, many utilities have been following Rs./kVA/Month billing for
LT categories. Below tabular brief from respective tariff orders illustrates the
applicability of kVA based billing among various LT categories.
State
West Bengal
Category Having kVA Based Demand Charges
LV-All Categories, MV-All Categories
Delhi
LT-Commercial, LT-Public Utilities, LT-Advertisements
& Hoardings
LT-Commercial >500Units consumption, LT-Medium
Industrial, LT-Bulk Supply
LT-EV Charging Stations
Rajasthan
Karnataka
Madhya Pradesh
Punjab
LT-Commercial >10kW, LT-Agricultural (upto 150HP),
LT-EV Charging Stations
LT-Domestic >50 kW, LT-Commercial >20kW, LTPublic Lighting, LT-Bulk Supply, PwD Hospitals
9.11.5 Since kVA based tariff is proposed to be introduced for 0-20 kVA Industries,
MSEDCL
January 20
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Main Petition
Commercial, Public Services in 3 phase LT category, for the first time, in case,
consumer exceeds his contract demand (in kVA) but remains within 20 kVA,
then penalty for exceeding contract demand will be exempted for first three
events in a calendar year only up to first April 2021. Thereafter, penalty will be
levied as per the applicable rates. Further, if such consumer (0-20 kVA)
exceeds 20 kVA demand, then he will be charged the applicable penalty.
9.11.6 MSEDCL submits that for consumers having single phase connections (upto
40 amperes /7.5 kW) in 0-20 kVA Industries, Commercial, Public Services in
LT category, MSEDCL shall continue to levy fixed charges on
Rs./Connection/Month as per the proposed tariff.
9.11.7 MSEDCL further submits that following additional considerations shall be
applied to LT category 0-20 kVA consumers:

Grace Period: These consumers will get 3 months of grace period for
changing their sanctioned load and applicability of kVA based demand
charges ; the impact of sales or revenue for such usage can always be
taken care of in the true up mechanism.

Billing Demand Determination: As per the provisions of “Miscellaneous
and General Charges” of the applicable Tariff Order.

Billing Demand of these consumers shall be determined as per the
current practice used for consumers with load above 20 kVA i.e.
Maximum of actual MD recorded OR 60% of the Contract Demand.

Contract Demand: Unless specified by the consumer, Contract Demand
shall be derived from sanctioned load in kW. Further, for conversion of
kW into kVA, power factor of 90% shall be applied.

In case consumer seeks to change/modify his sanctioned load, he can
apply for the same as per the provisions of the prevailing Regulations.

Contract Demand Violations: If the consumer crosses the 20kVA limit on
three instances in a year, he shall be categorized in higher slab
permanently. Before, such revision, MSEDCL shall give 15 days’ notice
to such consumer. MSEDCL shall implement the higher slab tariffs in the
next billing cycle.
9.11.8 In view of the above, MSEDCL humbly requests the Hon’ble Commission to
MSEDCL
January 20
210
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
allow the kVA based demand charges for LT category as proposed above.
9.12 Grid Support Charges for Rooftop Net Metering Arrangements
9.12.1 MSEDCL submits that it has always supported the renewable energy. The
current RE Contracted capacity by MSEDCL is 10795 MW and Installed
Capacity is 7654 MW which is one of the highest in the Country.
9.12.2 The net metering does help MSEDCL in meeting the RPO targets and cost for
purchase of solar energy gets saved. However, the resultant impact of such net
metering is much more on other consumers of MSEDCL due to under recovery
of infrastructure costs, CSS from such Net metering systems etc.
9.12.3 MSEDCL encounters challenges due to continuous addition of rooftop
renewable energy systems. Installation of such facility not only reduces the
utilisation of MSEDCL’s distribution network but also disturbs the power
planning and results into stranded tied-up capacity of generation. As such Net
metering consumers end up paying much lower charges for keeping ready the
network and generation capacity, which was earlier setup/tied-up for all
consumers including these consumers. The burden of unrecovered expenses
gets passed on to other consumers of MSEDCL.
9.12.4 As per the approved tariff, a part of the fixed cost is being recovered through
wheeling charges on per unit basis. The solar energy is generated during
daytime and after self-consumption by the consumer the balance energy is fed
into the grid. Due to its combined impact, the utility has to back down thermal
generation but is obligated to pay the same fixed cost to generators. When
there is no Solar Generation (evening, seasonal change, technical problem in
system etc.), the consumer draws full power as per requirement from the grid
and utility has to keep network and generators on bar ready to feed this
demand. The consumer is using the grid as a storage system for his solar
rooftop arrangement under net metering and at the same time loading the
balance costs on other consumers of the distribution utility such as generators
fixed cost, infrastructure cost recovery, CSS etc. Thus, the burden of such
unrecovered expenses from net metering systems is passed on to other
consumers of MSEDCL.
MSEDCL
January 20
211
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
9.12.5 MSEDCL further submits that Net Metering facility is being utilized mostly by
high end LT/ HT consumers which are subsidizing consumers and in the event
of any decrease in consumption by these high end consumers from Distribution
Licensee, it has a direct impact by way of increase in tariff of all consumers due
to under recovery. With increased Net Metering system installations, more and
more consumers are becoming subsidized consumers. The exponential rise in
the use of Net Metering will greatly affect the delicate tariff structure designed
in line with the Electricity Act and National Tariff Policy with the provision of
Cross subsidy mechanism for giving supply to poor consumers and agricultural
consumers at low tariff. Thus, the cross subsidy balance inbuilt in the tariff
structure will get disturbed.
9.12.6 The Hon’ble Commission in the MERC Grid Interactive Rooftop Renewable
Energy Generating Systems Regulations, 2019, has provided for levy of Grid
Support Charges on the generated energy under Net Metering systems. The
excerpts of the relevant clauses are given below:
“11.5 The Commission may determine in the retail Tariff Order such Grid
Support Charges to be levied on the generated energy under Net Metering
systems which shall cover balancing, banking and wheeling cost after adjusting
RPO benefits, avoided distribution losses and any other benefits accruing to
the Distribution Licensee. These Grid Support Charges would be determined
consumer tariff category wise, based on the proposal of the Distribution
Licensee in its retail supply Tariff Petition, supported by adequate justification:
Provided that the consumers of all Categories having Sanctioned Load up to
10 kW shall be exempted from payment of Grid Support Charges for Net
Metering systems:..”
9.12.7 In accordance with the above provision of the MERC Net Metering 2019
Regulations, MSEDCL hereby proposes Grid Support Charges for Rooftop Net
Metering systems as discussed in following paragraphs.
9.12.8 MSEDCL submits that as per the Net Metering Regulations 2019, the Grid
Support Charges cover balancing, banking and wheeling cost after adjusting
MSEDCL
January 20
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Main Petition
RPO benefits, avoided distribution losses and any other benefits accruing to
the Distribution Licensee.
9.12.9 MSEDCL submits that the fixed cost component of its cost gets recovered
partially through demand/fixed charges. However, the variable charges along
with the fixed cost component built into it remains unrecovered. It is further
submitted that due to consumer opting for Net Metering arrangement, MSEDCL
shall save only variable component of power purchase cost and T&D losses
thereon. Accordingly, considering the category wise variable charges, marginal
variable cost of power purchase, applicable wheeling and intra state
transmission losses, MSEDCL has proposed the Grid Support Charges for
Rooftop Net Metering Arrangements. For representation purpose, MSEDCL
has shown the computation for FY 20-21 in following table.
MSEDCL
January 20
213
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Main Petition
Table 186: Proposed Grid Support Charges for Rooftop Net Metering Arrangements (FY
20-21)
Category
Variable
Charge
Marginal Cost of
Power Purchase
Rs./kVAh
Rs./kWh
HT I HT - Industry
HT
7.88
3.38
EHV
7.11
3.38
HT I (B): HT - Industry (Seasonal)
HT
8.17
3.38
EHV
7.40
3.38
HT II: HT – Commercial
HT
12.47
3.38
EHV
11.70
3.38
HT III : HT - Railways/Metro/Monorail Traction
HT
7.97
3.38
EHV
7.20
3.38
HT IV: HT - Public Water Works
HT
7.27
3.38
EHV
6.50
3.38
HT V(A): HT - Agriculture Pumpsets
HT
4.67
3.38
EHV
3.90
3.38
HT V(B): HT - Agriculture - Others
HT
6.17
3.38
EHV
5.40
3.38
HT VI: HT - Group Housing Societies (Residential)
HT
6.77
3.38
EHV
6.00
3.38
HT VIII(A): HT - Temporary Supply Religious (TSR)
HT
4.67
3.38
EHV
3.90
3.38
HT VIII(B): HT - Temporary Supply Others (TSO)
HT
13.17
3.38
EHV
12.40
3.38
HT VIII(B): HT - Temporary Supply Others (TSO) Total 17.38
HT IX: HT - Public Services
HT IX(A): HT - Public Services-Govt. Edu. Institutions and Hospitals
HT
8.77
3.38
EHV
8.00
3.38
HT IX(B): HT - Public Services-Others
HT
10.67
3.38
EHV
9.90
3.38
HT X: HT – Electric Vehicle Charging Station
HT
6.17
3.38
EHV
6.17
3.38
Category
Rs./kWh
Rs./kWh
LT Residential
LT I(A): LT - Residential-BPL
1.36
3.38
LT I(B): LT - Residential
1-100 units
4.45
3.38
101-300 units
8.45
3.38
301-500 units
11.05
3.38
Above 500 units
12.65
3.38
LT II: LT - Non-Residential
(A) (i): 0 – 20 kVA
9.05
3.38
(B): >20 kVA and ≤ 50 kVA
10.65
3.38
(C): >50 kVA
12.75
3.38
LT III: LT - Public Water Works (PWW)
(A): 0-20 KVA
3.45
3.38
(B): >20 kVA and ≤ 50 kVA
4.75
3.38
(C): >50 kVA
6.05
3.38
LT IV(C): LT - Agriculture Metered – Others
4.85
3.38
LT V (A): LT - Industry - Powerlooms
(i): 0-20 kVA
6.05
3.38
(ii): Above 20 KVA
7.45
3.38
LT V(B): LT - Industry - General
(i): 0-20 kVA
6.15
3.38
(ii): Above 20 kVA
7.05
3.38
LT VI: LT - Street Light
(A): Grampanchayat; A B & C Class Municipal Council
6.05
3.38
(B): Municipal corporation Area
7.15
3.38
LT VII: LT - Temporary Connection
(A): LT - Temporary Supply Religious (TSR)
4.55
3.38
(B): LT - Temporary Supply Others (TSO)
14.35
3.38
LT VIII: LT - Advertisements and Hoardings
13.55
3.38
LT IX: LT - Crematorium and Burial Grounds
4.55
3.38
LT X (A) - Public Services – Govt.
(i): ≤ 20 kVA
4.85
3.38
(ii): >20 - ≤ 50 kVA
5.65
3.38
iii): >50 kVA
6.85
3.38
LT X(B) - Public Services - Others
(i): ≤ 20 kVA
6.95
3.38
(ii): >20 - ≤ 50 kVA
8.25
3.38
iii): >50 kVA
8.75
3.38
LT XI – Electric Vehicle Charging Station
6.15
3.38
MSEDCL
January 20
Intra State
Transmission
Loss
%
Wheeling Loss
Grid Support
Charge
%
Rs./kVAh
3.74%
3.74%
7.50%
4.08
3.60
3.74%
3.74%
7.50%
4.37
3.89
3.74%
3.74%
7.50%
8.67
8.19
3.74%
3.74%
7.50%
4.17
3.69
3.74%
3.74%
7.50%
3.47
2.99
3.74%
3.74%
7.50%
0.87
0.39
3.74%
3.74%
7.50%
2.37
1.89
3.74%
3.74%
7.50%
2.97
2.49
3.74%
3.74%
7.50%
0.87
0.39
3.74%
7.50%
9.37
9.02
3.74%
3.74%
7.50%
4.97
4.49
3.74%
3.74%
7.50%
6.87
6.39
3.74%
3.74%
7.50%
2.37
2.65
Rs./kWh
3.74%
12.00%
3.74%
3.74%
3.74%
3.74%
12.00%
12.00%
12.00%
12.00%
0.46
4.46
7.06
8.66
3.74%
3.74%
3.74%
12.00%
12.00%
12.00%
5.06
6.66
8.76
3.74%
3.74%
3.74%
3.74%
12.00%
12.00%
12.00%
12.00%
0.76
2.06
0.86
3.74%
3.74%
12.00%
12.00%
2.06
3.46
3.74%
3.74%
12.00%
12.00%
2.16
3.06
3.74%
3.74%
12.00%
12.00%
2.06
3.16
3.74%
3.74%
3.74%
3.74%
12.00%
12.00%
12.00%
12.00%
0.56
10.36
9.56
0.56
3.74%
3.74%
3.74%
12.00%
12.00%
12.00%
0.86
1.66
2.86
3.74%
3.74%
3.74%
3.74%
12.00%
12.00%
12.00%
12.00%
2.96
4.26
4.76
2.16
3.74%
%
-
214
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
9.12.10
Following table provides the category wise and year wise proposed Grid
Support Charges for Rooftop Net Metering Arrangements.
Table 187: Grid Support Charges for Rooftop Net Metering Arrangements (HT
Category)
Category
HT I HT - Industry
HT
EHV
HT I (B): HT - Industry (Seasonal)
HT
EHV
HT II: HT – Commercial
HT
EHV
HT III : HT - Railways/Metro/Monorail Traction
HT
EHV
HT IV: HT - Public Water Works
HT
EHV
HT V(A): HT - Agriculture Pumpsets
HT
EHV
HT V(B): HT - Agriculture - Others
HT
EHV
HT VI: HT - Group Housing Societies (Residential)
HT
EHV
HT VIII(A): HT - Temporary Supply Religious (TSR)
HT
EHV
HT VIII(B): HT - Temporary Supply Others (TSO)
HT
EHV
HT IX: HT - Public Services
HT IX(A): HT - Public Services-Govt. Edu. Institutions and
Hospitals
HT
EHV
HT IX(B): HT - Public Services-Others
HT
EHV
HT IX : HT - Public Services Total
HT X: HT – Electric Vehicle Charging Station
HT
EHV
MSEDCL
FY 2020-21
Rs./kVAh
FY 2021-22
Rs./kVAh
FY 2022-23
Rs./kVAh
FY 2023-24
Rs./kVAh
FY 2024-25
Rs./kVAh
4.08
3.60
4.07
3.59
4.05
3.57
4.03
3.57
3.96
3.52
4.37
3.89
4.37
3.89
4.35
3.87
4.33
3.87
4.29
3.85
8.67
8.19
8.57
8.09
8.45
7.97
8.33
7.87
8.19
7.75
4.17
3.69
4.27
3.79
4.35
3.87
4.43
3.97
4.49
4.05
3.47
2.99
3.57
3.09
3.65
3.17
3.73
3.27
3.79
3.35
2.37
1.89
2.47
1.99
2.55
2.07
2.63
2.17
2.69
2.25
2.97
2.49
3.07
2.59
3.15
2.67
3.23
2.77
3.29
2.85
9.37
9.02
9.67
9.19
9.95
9.47
10.23
9.77
10.49
10.05
4.97
4.49
4.97
4.72
4.95
4.61
4.93
4.92
4.89
5.02
6.87
6.39
6.87
6.39
6.85
6.37
6.83
6.37
6.79
6.35
2.37
2.65
2.59
2.09
2.55
2.07
2.63
2.17
2.69
2.25
January 20
215
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 188: Grid Support Charges for Rooftop Net Metering Arrangements (LT Category)
Category
LT Residential
LT I(B): LT - Residential
1-100 units
101-300 units
301-500 units
Above 500 units
LT II: LT - Non-Residential
(A) (i): 0 – 20 kVA
(B): >20 kVA and ≤ 50 kVA
(C): >50 kVA
LT III: LT - Public Water Works (PWW)
(A): 0-20 KVA
(B): >20 kVA and ≤ 50 kVA
(C): >50 kVA
LT IV(C): LT - Agriculture Metered – Others
LT V (A): LT - Industry - Powerlooms
(i): 0-20 kVA
(ii): Above 20 KVA
LT V(B): LT - Industry - General
(i): 0-20 kVA
(ii): Above 20 kVA
LT VI: LT - Street Light
(A): Grampanchayat; A B & C Class Municipal Council
(B): Municipal corporation Area
LT VII: LT - Temporary Connection
(A): LT - Temporary Supply Religious (TSR)
(B): LT - Temporary Supply Others (TSO)
LT VIII: LT - Advertisements and Hoardings
LT IX: LT - Crematorium and Burial Grounds
LT X (A) - Public Services – Govt.
(i): ≤ 20 kVA
(ii): >20 - ≤ 50 kVA
iii): >50 kVA
LT X(B) - Public Services - Others
(i): ≤ 20 kVA
(ii): >20 - ≤ 50 kVA
iii): >50 kVA
LT XI – Electric Vehicle Charging Station
FY 2020-21
Rs./kWh
FY 2021-22
Rs./kWh
FY 2022-23
Rs./kWh
FY 2023-24
Rs./kWh
FY 2024-25
Rs./kWh
4.46
7.06
8.66
4.56
6.96
8.56
4.63
6.83
8.43
4.69
6.69
8.39
4.73
6.53
8.33
5.06
6.66
8.76
5.16
6.86
8.86
5.23
7.03
8.93
5.29
7.19
8.89
5.33
7.33
8.83
2.06
2.06
2.13
2.19
2.23
2.06
3.46
2.16
3.46
2.33
3.53
2.49
3.59
2.63
3.63
2.16
3.06
2.36
3.26
2.53
3.43
2.69
3.59
2.83
3.73
2.06
3.16
2.06
3.26
2.13
3.33
2.19
3.39
2.23
3.43
10.36
9.56
10.66
9.86
10.93
10.13
11.19
10.39
11.43
10.63
1.66
2.86
1.76
3.06
1.83
3.23
1.89
3.39
2.03
3.53
2.96
4.26
4.76
2.16
3.16
4.56
5.06
2.36
3.33
4.83
5.33
2.53
3.49
5.09
5.59
2.69
3.63
5.33
5.83
2.83
9.12.11
MSEDCL requests the Hon’ble Commission to approve the levy of Grid
Support charges on generated energy for Net Metering systems as proposed
above by MSEDCL;
9.12.12
MSEDCL submits that the Grid Support Charges for Rooftop Net
Metering Arrangements shall vary depending on

Any cost approved by Hon’ble Commission for Genco/Transco in their
respective tariff Orders or by way of a separate Order.

Variation in any cost approved by Hon’ble Commission affecting
MSEDCL tariff.

MSEDCL’s REC requirement to fulfil the shortfall in meeting the RPO
Targets
The prevailing monthly market rate for RECs

MSEDCL
January 20
216
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
9.12.13
The RPO benefits, being a variable element, shall be adjusted at the
year-end i.e. at the time of settlement of banked units and after assessment of
REC requirement, as per the actual monthly REC Rates and consumption
during the respective month and financial impact of net metering of below 10
kW consumers.
9.12.14
MSEDCL also submits that the benefit of RPO (REC rate) shall be as
per the prevailing market rates. Additionally, in case, MSEDCL does not require
the energy for RPO fulfilment, the benefit of RPO to Net metering consumers
shall be treated as Zero. Benefit of RPO shall be adjusted only till the time
MSEDCL has RPO shortfall. Further, if the consumer is obligated entity (above
1 MW), then also such benefit of RPO shall be treated as Zero for that
consumer.
9.12.15
MSEDCL further submits that the Net Metering Regulations 2019
provides that the consumers having Sanctioned Load up to 10 kW shall be
exempted from payment of Grid Support Charges for Net Metering systems.
MSEDCL submits that such loss for exemption from paying the Grid Support
Charges needs to be recovered from the consumers having Sanctioned Load
above 10 kW so as to avoid the burden on consumers not opting for Net
Metering. The impact of this shall be computed by considering the same
category wise GSC as proposed above and shall be passed on to >10 kW Net
Metering consumers during the year-end settlement as proposed in above para
9.12.13.
9.12.16
MSEDCL submits that as per the above table and assumptions,
MSEDCL has computed the Grid Support Charges for all categories. However,
for certain categories such as LT Residential 0-100 Units, LT PWW (>20 kVA
upto 50 kVA), LT AG Metered Others, LT Temporary Supply Religious, LT
Crematoriums and Burial Grounds, LT Public Services-Govt. (0-20 kVA) and
HT AG Pump sets & HT Temporary Supply Religious, considering the
adjustment of RPO benefit and floor price of Rs. 1.00 per unit of REC, such
charges may be Nil for these categories. Hence, MSEDCL has not proposed
the Grid Support charges for these categories in this Petition. However, the
same shall be reviewed during Mid Term Review Process.
MSEDCL
January 20
217
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
9.12.17
MSEDCL further submits that the applicability of Grid Support Charges
for Rooftop Net Metering Arrangements shall be as follows:
RE generated Units
All Generated Units
Banked Units
Applicable Charges
Grid Support Charges
Wheeling losses
9.12.18
MSEDCL submits that in case of HT Consumers having rooftop net
metering arrangements, the kVAh consumption recorded in the net meter shall
be used for commercial settlement for banked energy after considering
wheeling losses. The generated units shall be converted to kVAh by
considering the Unity Power Factor. The settlement shall be done on kVAh
basis.
9.12.19
Further, for Net Billing arrangement, no grid support charges for rooftop
RE systems shall be levied.
9.12.20
MSEDCL submits that the financial impact of the Grid Support Charges
is not considered at present due to uncertainty of usage by consumers. The
impact on revenue for such charges will be considered at the time of final true
up.
9.13 Additional Demand/Fixed Charges for Rooftop Grid Connected RE
Systems not opting for Net Metering or Net Billing Arrangement
9.13.1 MSEDCL submits that the Hon’ble Commission, in the MERC Grid Interactive
Rooftop Renewable Energy Generating Systems Regulations, 2019, has
provided for the additional Fixed Charges or Demand Charges and any other
Charges for consumers of Rooftop Grid Connected RE Systems not opting for
Net Metering or Net Billing Arrangement. The relevant extract of the
Regulations are given below:
“7.9 Grid Connected Renewable Energy Generating Systems connected
behind the Consumer’s meter, and not opting for either Net Metering
Arrangement or Net Billing Arrangement, shall be allowed only after prior
MSEDCL
January 20
218
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
intimation to the respective Distribution Licensee:
…..Provided further that the Commission may determine additional Fixed
Charges or Demand Charges and any other Charges for such Grid Connected
systems excluding Non-fossil fuel based Co-generation plants, in the retail
Tariff Order, if Distribution Licensee proposes such additional Fixed Charges or
Demand Charges and any other Charges for such systems…
Provided also that in case the Consumer installs Renewable Energy Generating
Systems behind the Consumer’s meter without prior intimation to the respective
Distribution Licensee, then the total additional liabilities in terms of additional
Fixed Charges or Demand Charges and any other Charges for such systems,
shall be levied at twice at the determined rate for such period of default.”
9.13.2 MSEDCL submits that it is observed that certain consumers connected at
EHV/HT Level are installing rooftop RE Projects without informing Distribution
Licensee. Such Rooftop RE systems, though connected behind the
Consumer’s meter, take support of Grid and the network of the Distribution
Licensee. Further, installation of such facility reduce the utilisation of
Transmission/Distribution Network and thereby such consumer pay lower
charges for such network setup earlier for it. Such unrecovered part of
expenses is then loaded on other consumers of the Distribution Licensee.
9.13.3 In view of the above, MSEDCL hereby proposes Additional Fixed/Demand
Charges for Grid Connected Renewable Energy Generating Systems
connected behind the Consumer’s meter, and not opting for either Net Metering
Arrangement or Net Billing Arrangement along with the procedure for intimating
MSEDCL as stipulated below.


Consumer willing to install such Rooftop RE Systems shall intimate
MSEDCL with the type and capacity of such system.
Additional Fixed/Demand Charges as given below shall be applicable on
installed capacity per kWp per month over and above the applicable
charges for the respective consumer category.
9.13.4 MSEDCL has considered the projected ARR for respective year of the Control
MSEDCL
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period and bifurcated it into fixed and variable costs. The per unit fixed cost
recovery required is computed using expected average monthly generation.
The units generated by 1 kW rooftop solar plant are computed assuming annual
CUF of 19%. Further, nominal 10% demand/fixed charges is added to the
computed demand/fixed charges so as to encourage net Metering or Net Billing
arrangement. The additional fixed/demand charges computed in Rs./kW/month
basis are shown below:
Table 189: Additional Fixed/Demand Charges for Grid Connected RE Generating
Systems connected behind the Consumer’s meter
Particulars
Actual FC Recovery Required (Rs/Unit)
Monthly units generated by 1 kw rooftop SPV
(CUF-19%)
Fixed Charges to be recovered (Rs./kW/Month)
FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
4.23
3.86
3.83
3.81
3.73
138.7
645
138.7
589
138.7
584
138.7
581
138.7
568
9.13.5 In addition to the above, the subsidising consumers shall pay Cross Subsidy
Surcharge as proposed by MSEDCL for the respective year of the Control
Period for compensating the common consumers of MSEDCL for the current
level cross subsidy.
9.13.6 MSEDCL request the Hon’ble Commission to approve the Additional
Fixed/Demand Charges along with CSS for Grid Connected Renewable Energy
Generating Systems connected behind the Consumer’s meter, and not opting
for either Net Metering Arrangement or Net Billing Arrangement as proposed
by MSEDCL.
9.13.7 MSEDCL submits that the financial impact of the Additional Fixed/Demand
Charges is not considered at present due to uncertainty of usage by
consumers. The impact on revenue for such charges will be considered at the
time of final true up.
9.14 InSTS Charges for Open Access Consumers
9.14.1 Hon’ble Commission in its Order dated 14th June 2019 in Case No. 361 of 2018
directed MSEDCL to submit the details of revenue collected on account of
transmission charges from partial OA Consumers for the period of FY 2016-17
MSEDCL
January 20
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to FY 2019-20 in its next tariff Petition. Accordingly, MSEDCL submits the
details of transmission charges collected from partial OA Consumers in
following table.
Particulars
Amount in Rs. Crs
FY 2016-17
284.82
FY 2017-18
220.17
9.14.2 MSEDCL would like to submit that the Distribution Licensees may be allowed
to retain the transmission charges collected from partial Open access
consumers. It is pertinent to note that the demand of partial OA consumers is
embedded within the demand of the Licensee. Hence, the Transmission
Charges payable by the Distribution Licensee also includes the share of
Transmission Charges attributable to Partial Open Access consumers.
Therefore, Distribution Licensees must recover any such charges from partial
open access consumers to avoid any burden on their regular consumers.
9.14.3 Alternatively, while calculating the Base TCR of Distribution Licensees for
determination of InSTS charges, the CPD/NCPD of Distribution Licensees
should be exclusive of the open access capacity of partial open access
consumers. This will ensure correct Transmission Charge liability of the
Distribution Licensees corresponding to their own consumers. By including the
open access capacity of partial open access consumers, STU is getting paid
doubly for the same demand. Following table provides details of partial open
access consumers and its impact on MSEDCL.
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Particulars
Base TCR approved for
MSEDCL
MSEDCL share in TTSC
Transmission charges
Partial OA capacity
Amount paid by MSEDCL
to STU for OA Consumers
Amount
collected
by
MSEDCL from partial OA
Consumers
Loss to MSEDCL
Unit
FY 16-17
FY 17-18
FY 18-19
MW
15,657
16,663
17,891
Rs. Crs
Rs. Crs/MW
MW
3,837
0.25
1,838
4,797
0.29
1,274
4,288
0.24
1,224
Rs. Crs
450
367
293
Rs. Crs
285
220
182
Rs. Crs
166
147
111
9.14.4 MSEDCL submits that since the Base TCR approved for MSEDCL already
includes the Partial OA capacity, the transmission charges being paid to STU
are inclusive of the charges meant for the Partial Open Access consumers. If
the amount collected from partial OA Consumers by MSEDCL is again paid to
STU, it is getting paid twice for the demand corresponding to partial OA
consumers which will unnecessarily add burden to common consumers of
MSEDCL.
9.14.5 Therefore, MSEDCL submits that the transmission charges collected from
partial Open access consumers may be allowed to retain by the Distribution
Licensees. This will not only help to lessen the loss to MSEDCL but also help
to avoid the unnecessary burden on the common consumers of MSEDCL.
9.14.6 Hence, MSEDCL humbly requests the Hon’ble Commission it may be allowed
to retain the transmission charges collected from partial Open access
consumers and further requests the Hon’ble Commission to devise a
mechanism to recover the complete amount of Transmission Charges due to
OA consumers. MSEDCL has raised this issues many times before the Hon’ble
Commission through submissions in Petition and comments on Draft Open
Access Regulations.
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January 20
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9.15 Change in Slabs for Commercial and Public Services
9.15.1 MSEDCL submits that the Ministry of Power has constituted a Committee for
simplification of tariff categories. One of the objectives of the said Committee
was reduction in number of tariff categories.
9.15.2 Ministry of Power has appointed a Committee for Tariff Simplification and
another for Tariff Rationalization to suggest measures for simplification of tariff
structure & improve transparency so as to possibly enhance operational
performance of the distribution utilities. The said Committee has strongly
advocated for merging of categories and simplify the tariff structure. MSEDCL
submits that simplification of tariff structure is one of the major reason for this
proposal. Over the years, there have been additions in the slabs /sub-slabs in
tariff categories of MSEDCL. There is a need to simplify and rationalize the tariff
structure.
9.15.3 As a first step towards the reduction in number of tariff categories, MSEDCL
proposes that the consumption based sub-slabs in 0-20 kVA for LT Commercial
and LT Public Services may be done away with and just a single tariff category
0-20 kVA may be kept. Due to the fact that a large number of consumers are
shifting to rooftop renewable energy, the high consumption consumers will
automatically shift to lower tariff slab as a result of the merger of these tariff
slabs. This will enable simplification of tariff structure.
9.15.4 Considering the proposed change in kVA based Fixed Charges for Loads less
than 20 kW for 3 phase consumers, the energy charges for such consumers
are proposed not to increase substantially and thus this will not have impact on
the small consumer due to such change.
9.16 Standby Charges for Captive Power Producers
9.16.1 The origin of levy of additional standby demand charges is in the Commission’s
Order dated 8th September, 2004 in Case Nos. 55 and 56 of 2003 (hereby
referred as ‘the CPP Order’) wherein, it provided power purchase and other
dispensation for fossil fuel based Captive Power Plants (CPPs). Further, the
Commission has allowed recovery of additional demand charges from
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embedded Captive Power Plants (CPP) though it’s respective Tariff Orders.
The additional standby demand charges of Rs. 20/- per kVA is being levied to
embedded CPP holders which were introduced long back and not been revised
till date.
9.16.2 MSEDCL submits that the CPP Order determining standby charges for CPP
was issued more than thirteen years back, considering the then prevailing
power supply situation wherein, the circumstances have emerged to be
precisely different at present. These charges are still continued and are on
much lower side in comparison to capacity charges payment made by MSEDCL
for serving standby contracted capacity. MSEDCL submits that such charges
should be revised to fit the present power scenario where MSEDCL gets
affected by over drawl from these CPP holders in present DSM Regulations
2019.
9.16.3 CPP consumers having captive generation facilities who are synchronised with
the grid, require standby facility throughout the year. The stand-by arrangement
is for the benefit of the consumers so that they receive uninterrupted electricity
supply and the stand-by charges are the premium (as fixed charges) on such
guaranteed supply, which is irrespective of whether any supply is actually
drawn under the stand-by arrangement or not. As per existing dispensation,
MSEDCL can charge additional demand charges on embedded CPP
consumers, only when it is being utilized and only up to the extent of use.
9.16.4 MSEDCL over the time observed that, a CPP Unit trips due to faults resulting
in drawl of power from MSEDCL. This may result in over drawl of power from
the Grid by MSEDCL, which also affects the State Grid as well as impacts
MSEDCL financially in terms of deviation charges. Moreover, such over-drawl
may lead to power deficit situation for the existing consumers of MSEDCL and
may result in grid instability. Further, MSEDCL has to plan its power purchase
to cater such additional demands. It is observed that if penal charges for
exceeding the demand on account of unplanned shutdown of CPP are
computed based on existing provisions, then it works out to be minuscule and
does not provide adequate compensation.
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9.16.5 The Commission in the last MTR Order already observed that:
“9.35.10..…..the Commission has already determined the Stand-by charges of
Rs. 20/kVA for the embedded CPPs. The Commission notes that the same said
charges, which has been worked in the past, might require some revision. The
same shall be taken up during next MYT Order for the new Control Period.”
9.16.6 Thus, MSEDCL submits that the additional standby charges for CPPs may be
revised in the following manner considering the present power scenario.
Demand Charges on Standby Contracted Capacity
 By its very nature the standby demand has two scenarios as follows.
o Scenario 1: Standby demand is not utilised.
o Scenario 2: Standby demand is utilised in planned /unplanned shutdown.
9.16.7 Following dispensation is prayed before the Hon’ble Commission:
Particular
Energy Charges
Penal
Additional
Demand
Charges
Demand Charges on standby
contracted capacity
When standby demand is not utilized
Except planned
shut down
When standby demand is utilized
Energy charge as
Planned
approved in Tariff
shutdown
Order for relevant
category
Applicable
Energy
charge for temporary
Unplanned
category;
energy
shutdown/break
consumption due to
down
unplanned shut down
will be calculated on
MSEDCL
25% of applicable demand
charges on standby contracted capacity
As approved in tariff Order for
relevant category on total
contracted standby capacity
(on monthly basis).
25% of applicable demand
charges on standby contracted
capacity
January 20
2 times Demand
Charges
(on
monthly basis)
in force
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Particular
Demand Charges on standby
contracted capacity
Energy Charges
prorate
basis
demand utilized.
Penal
Additional
Demand
Charges
of
9.16.8 The method stipulated above would reduce the risk borne by CPP consumers,
protect MSEDCL consumers from load shedding, compensate the MSEDCL for
standby services and is easy to implement and levy.
9.17 Standby Charges for SEZs and Deemed Licensees
9.17.1 It has been observed that many of the SEZ and deemed Licensees do not have
standby arrangement. MSEDCL requests Hon’ble Commission to make it
compulsory for making standby arrangement for supply of power in case of
failure of the source generator. In order to ensure 24x7 reliable and
uninterrupted power supplies to its consumers, there are possibilities that such
licensees would draw power from grid. Therefore, in order to maintain the grid
discipline and to avoid the financial impact of penalty of overdrawal on
MSEDCL, MSEDCL requests Hon’ble Commission that SEZ/deemed licensees
must have a standby arrangement.
9.17.2 Hon’ble commission, in its MTR order dated 12th September 2018, ruled that
many of the deemed licensees have their own standby arrangements, where
the demand is fulfilled by DG sets installed in different premises within their
licensee area and Hon’ble Commission further stated that these deemed
licenses have not shown their concerns or requirement for the standby
arrangement. Hon’ble Commission also ruled that there is no legal mandate on
SEZs for the Standby Arrangement.
9.17.3 In view of the above, MSEDCL would like to submit that, at present there is no
mechanism to ensure whether such standby arrangement in the form of DG
sets really exists within the SEZ/Deemed licensee area as ruled by the Hon’ble
Commission in MTR Order and even if such arrangement exists whether it is
being used at the time of failure of the source generator is not monitored or
MSEDCL
January 20
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such data is not available. Further, it is to submit that any over drawal can be
seen only at the time of FBSM. There is no real time monitoring system with
SLDC to ensure that such standby arrangement is being put to use at the time
of unavailability of source generator.
9.17.4 It is further to submit that MSEDCL, in its Review Petition on the MTR order,
had already submitted the number of instances during which certain
SEZs/Indian Railways resorted to over-drawal from the grid.
9.17.5 MSEDCL would further like to bring it to the notice of the Hon’ble Commission
the exact details of the time blocks during which schedule of the source
generator of M/S Gigaplex (SEZ) was Zero and still there was drawal from the
grid.
Generator Schedule and Drawal details of M/s Gigaplex is summarized in
following table.
Time Slot No.
10th Oct 2016
Slot 75 to 96
(18.30 to 24:00)
10th Oct 2016
Slot 1 to 28
(00:00) to (07:00)
Generator
Schedule
Actual Drawal
from Grid (kWh)
Pool
imbalance
(kWh)
0
9,611
(9,611)
0
8,537
(8,537)
9.17.6 Similarly, Indian Railways has also resorted to over drawal from Grid when the
schedule of the source generator of Indian Railways was curtailed as shown in
the table below for FY17-18 (upto 25.03.2018):
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Month
August
September
October
November
December
January
February
March
Total
Total No. of
Time blocks for
which Bills
prepared
(Time Block)
Net OD
Energy
(MUs)
2976
2880
2976
2496
2688
2976
2688
2400
22080
8.1
6.1
10.5
12.9
8.3
13.8
8.0
6.4
74.1
No. of Instance
having OD more than
12% Demand
(No. of Time
Blocks)
%
1364
1263
2087
1664
1528
2069
1678
1511
13164
46%
44%
70%
67%
57%
70%
62%
63%
60%
No. of
Instance
having OD
more than
100%
Demand
(Time Block)
123
22
33
347
60
44
57
0
686
9.17.7 MSEDCL thereby submits that if M/s. Gigaplex and M/s. Indian Railways have
their own standby arrangement, there was no necessity to draw power from the
grid during the unavailability/ curtailed availability of source generator. Thus, it
is seen that factual situation is contrary to the ruling of the Hon’ble Commission
that the SEZs/ Deemed Licensees have their own standby arrangement.
9.17.8 MSEDCL reiterates that such instances are not only detrimental to the stability
of the grid but the undue financial burden of such instances is also getting
passed onto the consumers of MSEDCL for no fault on their part and therefore
SEZs/ deemed license and Indian Railways must have standby arrangement.
9.17.9 MSEDCL further submits that it has submitted a Letter on 8th February 2019
highlighting the issues pertaining to SEZ. The said Letter is attached as
Annexure 9 to this Petition.
9.17.10
MSEDCL thus requests the Hon’ble Commission to make standby
arrangement compulsory. In the event, standby arrangement is opted from
MSEDCL, allow recovery of standby charges from SEZs or Deemed Licensees
at the rate of applicable demand charges for HT Industrial Category.
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January 20
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9.18 Revision in ToD Rates
9.18.1 MSEDCL submits that Hon’ble Commission in the MTR Order dated 12th
September 2018 has observed that revision in ToD slabs and rates thereof
would depend on several factors such as change in the load curve, demand
side measures, overall system demand management measures in vogue etc.
Hon’ble Commission further ruled that as this issue has to be seen in totality
across all Licensees, it would take a view on proposals to modify the ToD timeslots and/or ToD slot-wise tariffs in the next Control Period.
9.18.2 In existing TOD tariff concept, rebate or penalty is same in all month irrespective
of load pattern, surplus & shortfall in availability. There is no consideration of
impact of RE generation which will be one of important change in generation
mix. Moreover due to various Govt. of India policies to promote RE generation
and as per the RPO Targets set for Utilities by Hon’ble Commission, there is
tremendous rise in RE generation is expected. The major rise is in solar
generation which has typical shape of inverted hyperbola. There is no or very
less generation during specific time period of a day; particularly during 06:00 to
09:00 and during 15:00 to 19:00 Hrs. Considering the demand pattern and
expected Solar Generation, MSEDCL has proposed revision in ToD tariff /rates.
9.18.3 MSEDCL is hereby submitting that the existing ToD slabs and Tariffs may be
followed with the revision in ToD tariffs as shown in the table below. However,
with the increasing share of renewable generations over the last few years, it is
necessary to revise ToD slabs so as to change the demand pattern of
consumers to enable the utilities to meet their peak demand effectively.
MSEDCL shall propose revision in ToD slabs and tariffs based on the existing
and upcoming renewable capacity additions and the demand-supply scenario
at the time of filing of the next Mid-term review petition.
Consumption Slab (kWh)
2200 Hrs-0600 Hrs
0600 Hrs-0900 Hrs &
1200 Hrs-1800 Hrs
0900 Hrs-1200 Hrs
1800 Hrs-2200 Hrs
MSEDCL
Existing ToD
Charge (Rs./kWh)
-1.50
0.00
Proposed ToD
Charge (Rs./kWh)
-1.50
0.00
0.80
1.10
0.60
1.50
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9.18.4 MSEDCL requests the Hon’ble Commission to approve the revision in ToD
Charges as proposed in above table.
9.19 Harmonics Penalty
9.19.1 MSEDCL submits that Central Electricity Authority on 6th February 2019 has
notified amendment to the CEA (Technical Standards for Connectivity to the
Grid) Regulations, 2007. As per the said amendment, Distribution Licensee and
Bulk consumers are required to provide adequate reactive compensation to
compensate reactive power requirement in their system. Further, the said
amendment also mandates for installation of power quality meter and sharing
the recorded data thereof.
The relevant extract of the Regulations are reproduced below:
“(2) (i) The distribution licensee and bulk consumer shall provide adequate
reactive compensation to compensate reactive power requirement in their
system so that they do not depend upon the grid for reactive power support.
(ii) The power factor for distribution system and bulk consumer shall be within
± 0.95;
(3) Voltage and Current Harmonics. –
(i) The limits of voltage harmonics by the distribution licensee in its electricity
system, the limits of injection of current harmonics by bulk consumers, point of
harmonic measurement, i.e., point of common coupling, method of harmonic
measurement and other related matters, shall be in accordance with the IEEE
519-2014 standards, as amended from time to time;
…..
…..
(iv) The bulk consumer shall install power quality meter and share the recorded
data thereof with the distribution licensee with such periodicity as may be
specified by the appropriate Electricity Regulatory Commission:
9.19.2 MSEDCL submits that the Regulation 2.1 (i) of the MERC (Electricity Supply
code and other Conditions of Supply) Regulations, 2005 defines “Harmonics”
as under:
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“Regulation 2.1
(l) “Harmonics” means a component of a periodic wave having frequency that
is an integral multiple of the fundamental power line frequency of 50 Hz causing
distortion to pure sinusoidal waveform of voltage or current, and as governed
by IEEE STD 519-1992, namely “IEEE Recommended Practices and
Requirements for Harmonic Control in Electrical Power Systems” and
corresponding standard as may be specified in accordance with clause (c) of
subsection (2) of section 185 of the Act.”
9.19.3 From the definition, it is understood that the presence of harmonics in electrical
systems means that the current and/or voltage are distorted and deviated from
the sinusoidal waveform.
9.19.4 MSEDCL further submits that the Regulation 12.1 of MERC Supply Code
provides that the certain categories of HT Consumers and LT Consumers
(Industrial and Commercial) are required to control the harmonics generated in
their system on account of their load. The regulation is reproduced below for
ready reference.
“12.1 It shall be obligatory for the consumer ………………
Provided that it shall be obligatory for the HT consumer and the LT
consumer (Industrial and Commercial only) to control harmonics of his load at
levels prescribed by the IEEE STD 519-1992, and in accordance with the
relevant Orders of the Commission.”
9.19.5 MSEDCL also submits that Regulation 12.2 MERC Supply Code Regulations
2005 provides for the minimum time period given to the consumer to make
necessary changes in their system so as to control harmonics (or) improve the
system’s power factor. Further, the said Regulations also set provisions for
penalizing the neglecter for failing to do so. This may attract penalty for not
controlling harmonics within the prescribed limit. The regulation is reproduced
below for ready reference.
“12.2 The Distribution Licensee may require the consumer, within a
reasonable time period, which shall not be less than three months, to take
such effective measures so as to raise the average power factor or control
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harmonics of his installation to a value not less than such norm, in accordance
with Regulation 12.1 above
Provided that the Distribution Licensee may charge penalty or provide
incentives for low / high power factor and for harmonics, in accordance with
relevant Orders of the Commission.”(Emphasis Added)
9.19.6 MSEDCL consumers use various non-linear loads in industries and commercial
establishments which demand non-sinusoidal currents. Such nonlinear
currents are rich in harmonics. Harmonics are currents of higher frequencies
i.e. 150 Hz, 250 Hz etc. Such currents cause overheating of transformers,
cables, switchgears, causing insulation deterioration and nuisance tripping in
control circuits. Excessive current harmonics results into voltage harmonics and
poor power quality. Hence, it is necessary to control the harmonics.
9.19.7 Considering the fact that industrial systems have been moving towards nonlinear load equipment, which further result in higher Harmonics in the system.
It is pertinent to mention here that higher harmonics in the system lead to
increased iron and copper losses in upstream electrical equipment in
distribution systems, which do not get metered to the consumer.
9.19.8 MSEDCL is apprehensive of the fact that the increased THD levels (total
Harmonic distortion), will have adverse effects on the equipment of the utility,
which affects the operational efficiency of the utility and consumers also.
9.19.9 Disadvantages of Harmonics
9.19.10
Following are some of the effects of harmonics on various components:
 Generators & Transformers
Increased heating on account of higher iron & copper losses, affects the
machine efficiency and insulation life.
Harmonics lead to asymmetrical unbalanced currents which in turn cause
stress on insulation provided to neutral conductors in star connected
systems and give rise to failure.
 Power Cables and Capacitor
Voltage stress induces higher corona losses, resulting in dielectric failure.
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


Meters
Non-linear voltages and current introduce errors into the measurement
circuit results in false readings.
Switch gear and Relay
The out-of-balance current causes spurious/false operations, might operate
false alarms and trips
Conductors
Increase in losses, heating leads to reducing life of conductors.
9.20 Petitions by MSEDCL in Past Regarding Harmonics
9.20.1 MSEDCL had filed a Petition before the Hon’ble Commission for amendment in
SOP Regulations related to Harmonics limits and prayed for effective
implementation of Regulation 12.2 of the Supply Code Regulations 2005 (Case
No. 34 of 2011).
9.20.2 Hon’ble Commission vide its Order dated 24.12.2012 opined that introduction
of penalty for injection of the Harmonics at this stage will be premature. Instead
of introduction of penalty, MSEDCL needs to analyse existing level of
Harmonics in the system, causes and remedial measures for limiting the same.
Hon’ble Commission further observed that MSEDCL needs to arrange program
for creating awareness amongst the consumers about effects of Harmonics on
the power equipment.
9.20.3 MSEDCL subsequently filed a Petition for removal of difficulties and
amendment of Standards of Performance Regulations, 2014 and prayed that
the onus of control of Harmonics should be placed on the consumer, in addition
to the Distribution Licensee. (Case No. 138 of 2014)
9.20.4 Hon’ble Commission vide its Order dated 17 August, 2015 rejected the claim of
MSEDCL citing pendency of response to directives in Case No.34 of 2011.
9.21 Compliance of Directives in Case No.34 of 2011
9.21.1 As per the directives of this Hon’ble Commission, the harmonics measurement
study has been carried out by the Petitioner. The study was carried out at
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substation end in Load ON and OFF condition. Additionally, the Petitioner has
also carried out measurement of harmonics at various HT consumers.
9.21.2 The measurement of harmonics was carried out by MSEDCL field engineers
using Electronic Reference Standard Meter (Make: Zera, Class: 0.2S) available
with MSEDCL and the THD is measured at consumer premises as well as at
substation end.
9.21.3 Out of the 21,810 HT consumers for whom harmonics were measured, 9,905
consumers has shown the abnormalities. This is about 45% which is very high.
9.21.4 In order, to further confirm the abnormalities, MSEDCL decided to appoint an
expert third party agency to undertake measurement of harmonics and analyze
the issues involved in respect of sample 100 HT consumers spread all over the
state including 25 consumers from each region strictly as per the requirements
of IEEE 519 : 1992. This exercise was carried out with the assistance of a third
party expert agency in the field of harmonics measurement and analysis in
order to cross verify and validate the observations made by MSEDCL field
engineers. M/s. SAS Powertech P. Ltd., Pune was awarded the work of
measurement of harmonics and analysis thereof.
9.21.5 M/s. SAS, Pune completed the work of measurement of harmonics at selected
100 HT consumer premises in May 2018 and submitted the report with detailed
analysis in June 2018. These measurements and recording were carried for 24
hours at each consumer premises at HT PCC between MSEDCL and consumer
electrical system.
9.21.6 It was observed that out of 100 HT consumers, 31 consumers were exceeding
the permissible limits of TDD compliance, 10 consumers had their TDD at
border level. Further, 4 consumers were found exceeding voltage harmonic
compliance.
9.22 Regulatory Provisions for Harmonics
9.22.1 IEEE Standard namely “IEEE 519-1992 - IEEE Recommended Practices and
Requirements for Harmonic Control in Electrical Power Systems” provides for
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the requirement of harmonics control.
9.22.2 Central Electricity Authority on 6th February 2019 has notified amendment to
the CEA (Technical Standards for Connectivity to the Grid) Regulations, 2007.
As per the said amendment, Distribution Licensee and Bulk consumers are
required to provide adequate reactive compensation to compensate reactive
power requirement in their system. Further, the said amendment also mandates
for installation of power quality meter and sharing the recorded data thereof.
9.22.3 Further, Regulation 12.1 of MERC (Electricity supply code & other conditions
of (supply) Regulation 2005 provides that it shall be obligatory for HT
consumers to control harmonics of his loads at level prescribed by IEEE
STANDARD 519-1992.
9.22.4 Current distortion limits as per IEEE 519-2014 for general distribution system
(120V to 69000V) are as below:-
Isc/IL
< 20*
20 < 50
50 < 100
100 < 1000
> 1000
Maximum Harmonic Current Distortion in % of IL
Individual Harmonic Order (Odd Harmonics)
3≤h< 11 11≤h<I7 17≤h<23
23≤h<35 35≤h≤50
4.0
2.0
1.5
0.6
0.3
7.0
3.5
2.5
1.0
0.5
10.0
4.5
4.0
1.5
0.7
12.0
5.5
5.0
2.0
1.0
15.0
7.0
6.0
2.5
1.4
TDD
5.0
8.0
12.0
15.0
20.0
9.22.5 Current distortion limits as per IEEE 519-2014 for general distribution system
rated above 69 kV through 161 kV are as below:-
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Isc/IL
< 20*
20 < 50
50 < 100
100 < 1000
> 1000
Maximum Harmonic Current Distortion in % of IL
Individual Harmonic Order (Odd Harmonics)
3≤h< 11 11≤h<I7 17≤h<23
23≤h<35 35≤h≤50
2.0
1.0
0.75
0.3
0.15
3.5
1.75
1.25
0.5
0.25
5.0
2.25
2.0
0.75
0.35
6.0
2.75
2.5
1.0
0.5
7.5
3.5
3.0
1.25
0.7
TDD
2.5
4.0
6.0
7.5
10.0
9.22.6 Current distortion limits as per IEEE 519-2014 for general distribution system
rated > 161 kV are as below:-
Isc/IL
< 25
25 < 50
≥50
Maximum Harmonic Current Distortion in % of IL
Individual Harmonic Order (Odd Harmonics)
3≤h< 11 11≤h<I7 17≤h<23
23≤h<35 35≤h≤50
1.0
0.5
0.38
0.15
0.1
2.0
1.0
0.75
0.3
0.15
3.0
1.5
1.15
0.45
0.22
TDD
1.5
2.5
3.75
Even harmonics are limited to 25% of the odd harmonic limits. TDD refers to
Total Demand Distortion and is based on the average maximum demand
current at the fundamental frequency taken at the PCC
* All power generation equipment is limited to these values of current distortion
regardless of Isc/IL
Isc = Maximum short circuit current at the PCC
IL = Maximum demand load current (Fundamental) at the PCC
h = Harmonic Number
9.22.7 Further, now IEEE 519-2014, has introduced statistical evaluation (Very short
and Short time harmonic measurements), having same limits as mentioned in
IEEE 519-1992.
9.22.8 MSEDCL further submits that Tamil Nadu Electricity Regulatory Commission
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(TNERC) through its order dated 30.03.12 has permitted the utility to levy
harmonic compensation of 15% of respective tariff for High tension consumers
for non-compliance of Harmonics limit. The relevant portion from the said Order
are reproduced below for ready reference:
“10.1.2 Harmonics: As specified in the Supply Code, when the consumer fails
to provide adequate harmonic suppression equipment to avoid dumping of
harmonics beyond the limits as specified by CEA regulations into Licensee’s
distribution system, he is liable to pay compensation at 15% of the respective
tariff. As and when the consumer brings down the harmonics within the limit,
compensation charges shall be withdrawn. The measurement of harmonics
shall be done by the Distribution Licensee using standard meters/equipment in
the presence of consumers or their representatives. This compensation
provision is applicable to HT-I & HT-III category of consumers. The
TANGEDCO shall give three months clear notice to all consumers under these
categories stating that they shall pay 15% compensation charges if the
harmonics introduced by their load is not within the limits set by CEA. The
TANGEDCO shall implement the compensation provision after the three
months period if the measured harmonics is more than the limits. “
9.23 Proposal for Harmonics Penalty
9.23.1 In view of the above,
1) MSEDCL proposes to introduce a harmonics penalty of 5% additional
Energy Charges (Wheeling Charges plus Energy Charges) for HT Industrial
and Commercial consumers who does not maintain the harmonics levels
specified in IEEE STD 519-2014
2) MSEDCL normally carries out quarterly/yearly testing of HT Consumers.
MSEDCL proposes to carry out harmonic survey along with quarterly/annual
testing. If any consumer is found with harmonic levels beyond limits
specified in IEEE 519 :2014, then MSEDCL will serve a Notice indicating
test results and intimation to take corrective action for harmonic suppression
within 3 months from the date of service of Notice.
3) Subsequent to above Notice, consumers are required to file report of
compliance accompanied with test certificates of harmonic filters, invoices
and commissioning report. For such consumers who provide compliance to
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the Notice, no penalty will be levied, but it is expected that they will maintain
harmonic filters in working condition.
4) The consumers who do not adhere to Notice stipulations, will be charged
additional energy charges for consumption beyond 6 months, till rectification
of defect.
5) If it is observed that the consumer has not complied with stipulations
provided in Notice or has not maintained harmonic filters in working
conditions then MSEDCL will apply harmonics penalty for past consumption
i.e. from date of serving of Notice and for future consumption till rectification
of defect.
9.23.2 MSEDCL requests the Hon’ble Commission to approve levy of harmonics
penalty through additional charge equivalent to 5% of Variable Charges
(Wheeling Charges plus Energy Charges) for HT Industrial and Commercial
consumers who does not maintain the harmonics levels specified in IEEE STD
519-2014.
9.23.3 Further, the HT Industrial and Commercial consumers shall install power quality
meters within six months period and share the recorded data with MSEDCL
quarterly.
9.24 Expenses for Go Green Initiative (E-Copy of the Bill)
9.24.1 Hon’ble Commission in its Order dated 19th March 2019 in Case No. 1 of 2019
opined that MSEDCL may decide and continue with SMS services and may
increase rebate to Rs. 10/- per bill under Go-Green initiative which could be
linked to a percentage of bill amount or Rs 10/- per bill whichever is higher. This
expenditure pass through would either be treated as an expenditure under O&M
and more specifically under A&G or would be considered as a pass through
subject to submission of cost benefit analysis justifying the expense incurred,
during its upcoming tariff Petition.
9.24.2 MSEDCL submits that Digital India Program (Digital Program) was launched by
the Government of India (GoI) with an objective to ensure that the services of
the Government are made available to citizens electronically by improved
online infrastructure and by increasing Internet connectivity or by making the
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country digitally empowered in the field of technology.
9.24.3 In addition to the above flagship Program, GoI has also been encouraging
Government departments / Ministries to shift to paperless functioning mode in
a time bound manner. The ‘Paperless Office’ initiative is aimed at improving the
ease of governance and expediting the administrative process.
9.24.4 The Government of Maharashtra (GoM) has been encouraging digitization of
its services and implementation of ‘Paperless Office’ at State Level. MSEDCL
is proactively moving towards paperless and digitally led systems & structures.
9.24.5 In view of the above and in order to encourage the consumers to participate in
the Digital Program, MSEDCL has decided to offer a rebate of Rs. 10/- on every
electricity bill to the consumers who opt for an electronic copy of the bill instead
of the hard copy under its “Go Green” initiative.
9.24.6 Go-Green initiative is launched as a voluntary initiative (not a compulsion)
wherein consumers are free to opt for an electronic copy of the bill instead of
the hard copy as per their willingness.
9.24.7 MSEDCL was giving a discount of Rs. 3 per electricity bill since 2016, but in
order to encourage more participation under the Go-Green initiative has
decided to offer a discount of Rs. 10/- on every electricity bill to the consumers,
opting for an electronic copy of the bill. This initiative is implemented w.e.f. 1
December, 2018 for LT consumers.
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Bill month
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Registered
Consumers
2,507
2,527
2,701
2,721
2,778
3,090
4,072
4,665
15,432
21,142
23,276
38,636
Total for FY 18-19
Go-Green Discount
per month (In Rs.)
7,521
7,581
8,103
8,163
8,334
9,270
12,279
18,118
1,54,299
2,11,420
2,32,760
3,86,360
10,64,208
9.24.8 Currently, 59,040 consumers have opted for Go-Green initiative. Presently
about 14 lakh consumers have registered email address with MSEDCL and
more than 50 lakhs consumer are paying online. Therefore, MSEDCL expect
more and more consumers will opt for electronic copy of the bill.
9.24.9 Benefits of the Go Green Initiative
a) Paperless bills, will save cost of bill stationery including paper and ink
b) Save time for Bill Distribution and Bill Printing. (Approximately 1 day
required for Bill printing and 3-7 days for Bill Distribution depending on
Urban and Rural area)
c) Saves cost of Bill Printing and bill Distribution i.e approximately Rs 1.50/per bill.
d) Reducing the number of complaints from the consumers regarding nonreceipt of the bill;
e) E-bill is immediately sent to consumers and can be accessed by consumers
from any location.
f) Ensuring timely and early realization of payments from consumers thereby
reducing the working capital requirement of MSEDCL;
g) Bringing down the printing and distribution expenses in the long run, if
considerable number of consumers opt for this initiative;
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9.24.10
MSEDCL submits that the Go Green Initiative (E-Copy of the Bill) has
many tangible and intangible benefits. This will help MSEDCL as well assist in
boosting the Digital India Program launched by Govt. of India. In view of the
various benefits, MSEDCL most earnestly requests the Hon’ble Commission to
allow the expenditure for Go Green Initiative as revenue expenditure over and
above the normative O&M Expenses.
9.25 Expenses for SMS Service
9.25.1 The Hon’ble Commission in its MTR Order in Case No.195 of 2017 noted that
serving of notices to the consumers through digital medium such as whatsapp
message, email, SMS etc. will not only be environmental friendly and save
administrative cost but also would free the human resources for other consumer
service related works and hence the Hon’ble Commission allowed MSEDCL to
issue notices under Section 56 of the Electricity Act, 2003 through digital mode
such as whatsapp message, email, SMS etc.
9.25.2 Since 2016, MSEDCL, focused towards providing all services to its consumer’s
online (digital platform). In this endeavor, MSEDCL introduced mobile app for
consumers. Till date, more than 30 Lakh consumers have downloaded and
using this app. Understanding that, not all consumers would require mobile app,
MSEDCL, decided on passive communication via SMS, In order, to reach
maximum consumers, all-out efforts taken to collect mobile no. of all
consumers. As on today, registered mobile no. has reached up to 2.20+ crores.
9.25.3 Also, new SMS services are introduced for employees through Employee
portal, vendors through vendor payment system and for Solar Ag Consumers.
Various SMS campaigns are also executed for informing consumers about
MSEDCL schemes and major breakdowns during emergencies and natural
calamities etc. Recently added Meter Reading Intimation SMS makes
consumer aware that meter reader is going to visit his/her premises for
capturing reading Meter Reading in particular slots.
9.25.4 MSEDCL has already created a facility for consumers to get information by way
of SMS generated by MSEDCL’s system delivered to the mobile number
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registered with MSEDCL. The scope of SMS services includes following:
a) Intimation of billing information: Consumer can request for his bill details on
his registered mobile number by sending SMS to the designated short
code/long code (Push and Pull Services);
b) Billing Alerts: For registered consumers the system will send alerts informing
his total due amount, due date, when services will be disconnected if not
paid, Notices for unpaid bills, payment acknowledgement etc.;
c) Acknowledgement of consumer registrations/complaints;
d) Intimation of consumer complaints to MSEDCL officers;
e) OTP for VPN users;
f) SMS to consumer for new connection system;
g) Other SMS for systems like bill revision, ERP, feeder outages etc.;
h) Any other useful and commercially viable services
9.25.5 Following table provides the cost of SMS service per month.
Approx. No.of
Cost of SMS
SMS Service
SMS Per
Per month (Rs.)
Month (In Lakh)
Meter Reading Information
150
10,35,450
Bill Alert & Bill Reminder Before and
290
20,01,870
After Due Date
Outage Notification
180
12,42,540
Payment Ack for all payments
90
6,21,270
Complaint Acknowledgement
5
34,515
Self-Reading Request
15
1,03,545
New Connection Approval
2.50
17,257
Employee Portal
0.53
3,683
OTP for Employees/ vendors etc.
10
69,030
Other ad-hoc SMS (incidental /
150
10,35,450
occasional)
Advance Meter Reading Intimation
42.93
2,96,372
Total
945.96
64,60,982
9.25.6 SMS service has various benefits which are summarized below:
a) Transparency in Service Delivery,
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b) Advance intimation of meter reading schedule improves normal billing
percentage and in turn billing efficiency.
c) Bill Alerts, Bill Reminder SMS helps to improve collection it turn timely
realization of revenue.
d) Improving the working capital requirement
e) Outage intimation to consumers helps to reduce consumer grievances.
f) SMS to employees helps to improve better productivity and efficiency.
g) OTP ensures secured access to authorized employees / end users.
9.25.7 MSEDCL submits that the SMS service will help not only consumer but
MSEDCL also in information disseminating in a matter of seconds to large
section of consumers at one go. Delhi Electricity Regulatory Commission
(DERC) in its Order in the matter of Petition for approval of Annual Revenue
Requirement (ARR) of Tata Power Delhi Distribution Ltd. for the FY 2018-19,
Revised ARR for FY 2017-18, True up for FY 2016-17 has approved expenses
of SMS services separately in ARR under other expenses. By drawing same
analogy and inn view of the various benefits, MSEDCL most earnestly requests
the Hon’ble Commission to allow the expenditure for SMS Services as revenue
expenditure over and above the normative O&M Expenses.
9.26 Revision in Reconnection Charges for Restoration of Power Supply
9.26.1 The percentage of consumers who pay within the due date is only 51% in case
of LT consumers. LT category has a large base of consumers. The percentage
of consumers paying late or not paying are about 40% of the overall LT category
of consumers which is a very high proportion. Thus, a high proportion of
consumers in LT category do not pay on time resulting in blocking of revenue.
Further cost and expense have to be incurred to take necessary steps to realise
the unpaid dues of the electricity bill from the defaulting consumers. Further, it
reveals from the above mentioned table that at least ~10% of the consumers
are such that they are paying electricity bill during notice period. Thus MSEDCL
has to incur the administrative charges and expenses for serving notice on such
consumers.
9.26.2 MSEDCL submits that due to lower collection efficiency, administrative costs,
its financial position is getting worse day by day and interest on working capital
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is increasing. Therefore, recovery on arrears is a prime concern for MSEDCL
and hence, higher disconnection/reconnection charges are required to ensure
timely payments by the consumers. It is further submitted that higher
reconnection charges may encourage the consumer to pay the electricity bills
in time and discourage the consumer from becoming a defaulter.
9.26.3 The disconnection and reconnection is two stage process. Initially, the
defaulting consumer’s supply is physically disconnected from consumers’
premises. After the consumer makes payment of electricity bills and
reconnection charges, the reconnection process has to be completed at the
consumer premises only, with all physical activities including transportation of
equipment. When the consumer pays the bill MSEDCL has to reconnect the
meter, metering equipment, service line etc. Unlike telephone or mobile where
disconnection/reconnection
is
done
remotely,
physical
disconnection/reconnection at consumer premises is essential in the
disconnection of electricity. While for the physical disconnection/ reconnection
of electric supply, the charges are comparatively very low in the range of Rs.
50-100 for LT category of consumers.
9.26.4 MSEDCL submits that the reconnection charges approved by Hon’ble
Commission are meagre and does not cover the actual cost incurred by
MSEDCL for reconnection.
9.26.5 MSEDCL submits that as provided in the Section 56 (2) of the Electricity Act
2003, when any person neglects to pay any charge for electricity or any sum
other than a charge for electricity due from him in respect of supply of electricity
to him, MSEDCL after giving fifteen days’ notice in writing can disconnect the
electric supply.
9.26.6 Notice is to be served through lawyer, whose legal fee varies. MSEDCL has
approved the legal charges of Rs. 200/- towards preparation of disconnection
notice and Postage & Printing charges of Rs 35/- for serving a single notice.
Apart from that MSEDCL billing staff has to spend its time. There are cases
when the consumer makes the payment during the notice period after the notice
has been issued to him. In such cases, also the cost of issuance of notice is
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incurred by MSEDCL.
9.26.7 MSEDCL submits that reconnection activity involves administrative cost
including man-power, transportation and time. In case of HT category
consumer, for disconnecting supply, it is required to take outage & disconnect
the supply from sub-station. During this period of disconnection, there is
revenue loss for MSEDCL. Further, two persons (line staff + Helper) are
required to reconnect the electricity supply.
9.26.8 Considering the fact that the disconnections/reconnections are required to be
done during operating hours only, MSEDCL has restrictions in terms of
manpower utilisation for multiple tasks. Due to such restrictions, MSEDCL
needs to deploy staffs for reconnections which add to the employee cost.
Moreover it is pertinent to mention that the issuance of notice and carrying out
disconnection/reconnection incurs cost under several heads. In usual practice,
two DISCOM employees are required to carry out ‘disconnection/reconnection’
activity. It is submitted that MSEDCL incur cost for carrying out the reconnection
activity. Thus charges incurred on account of logistics & overheads of those
employees should be subsumed within the reconnection charges. Hence the
‘Notice’ as well as ‘disconnection/reconnection’ needs to be fully compensated
by individual consumer who is in default.
9.26.9 It is submitted that in accordance with EA 2003, the Commission had notified
MERC (Electricity Supply Code and Other Condition of Supply) Regulations,
2005. As per the provisions of the Supply Code Regulations, MSEDCL recovers
various charges approved by the Hon’ble Commission vide its Order dated 12
September 2018 (Case No. 195 of 2017), for various services provided to
consumers.
9.26.10
While deciding the schedule of charges in MTR Order dated 12th
September 2018 (Case No. 195 of 2017), the Hon’ble Commission has
considered the six year average of Consumer Price Index published by the
Labour Bureau, Government of India to escalate previously approved charges
in Order dated 16 August, 2012 on compounded basis.
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9.26.11
However, the Hon’ble Commission has ignored the revision rate of
minimum wages. This has necessitated the need for revision of schedule of
charges. MSEDCL has proposed increase in reconnection charges after
considering the increase in labour cost and inflationary indices. This is for
encouraging prompt payment and to discourage consumer from defaulting on
the energy bills.
9.26.12
In order to encourage timely payments by defaulting consumers avoiding
disconnection reconnection activities, it is necessary to have higher
reconnections charges. Thus it is necessitated the need for revision of
reconnection charges.
9.26.13
Hon’ble Commission in its Order dated 20th April 2015 has approved
Visit Charges for subsequent visit for Inspection and test of Installation for
Mumbai Licensees. MSEDCL submits that on similar lines, the staff of MSEDCL
also requires to visit the consumer premises twice; first for disconnection and
again for reconnection. Thus, considering the number of visits, manpower and
time involved, transportation up to consumer premises the reconnection
charges need to be increased to cover the costs incurred by MSEDCL.
9.26.14
The estimate of the cost incurred by MSEDCL towards
disconnection/reconnection charges and for serving notice to the consumer
along with proposed revision in reconnection charges is submitted in the
Chapter on Schedule of Charges.
9.27 Additional Suggestions for Tariff Applicability
9.27.1 MSEDCL submits that Hon’ble Commission in its past tariff Orders has explicitly
spelt tariff applicability to various usages. With growth in economy, new usages
pattern have emerged, which require clarification and confirmation of Hon’ble
Commission. Though the applicability specified by the Hon’ble Commission is
representative, MSEDCL prays for confirmation on following usage
categorisation.
9.27.2 Following new usages have been identified and added in tariff applicability
proposal.
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9.27.3 Day Care Centre for senior Citizens in Residential category:
In urban areas day care centre for the older generation are coming up, where
elderly people are being looked after by a volunteer. MSEDCL is already
charging residential rates to orphanages and homes for destitute. Similarly
MSEDCL proposes to include Day Care Centres for senior citizens under
Residential Category.
9.27.4 Water ATM (RO/UV/UF) Water Purifier Plants
The novel concept of ‘water ATMs’, has been initiated in remote areas of
vidharbha where there is severe water scarcity or flow of contaminated water.
Majority of Water ATMs are being installed with the funds received from
multination Companies and state run Mahagenco under corporate social
responsibility fund. In some cases these machines are being handed over to
Gram panchayat or directly to women’s self-help groups for operation.
Considering this MSEDCL proposes to charge such units under Public services
(Others) category, if Gram panchayat or local body operates the same.
Otherwise Non-residential tariff may be made applicable.
9.27.5 Godowns and Warehouses in Non-Residential Colony:
MSEDCL submits that warehousing means art of storage goods, making
maximum use of available space for storage of goods (Raw and Finished).
Godowns and warehouses are third party logistic providers and meant for
temporary storage of goods. There exists the cluster of warehouses outside
Bhiwandi and Pune in Maharashtra. The facilities of godowns and warehouses
are leased by owner to any company, who intend to store the goods near to its
demand centre. Presently Hon’ble Commission has not explicitly mentioned
usages for Godowns and warehouses in any category. Hence, MSEDCL
proposes to classify the Godowns and warehouses in Non-Residential
category.
9.27.6 Common facility Centre (CFC) establish under cluster development program of
Central/State Government
Govt. of India has announced schemes for upgradation of potential industrial
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clusters. Govt. of India gives financial support by grant-in-aid to establish
Common Facilities Centre (CFC) & infrastructure development to enhance the
productivity and competitiveness of the clusters.
CFC includes R & D facilities, Packaging Centre, Testing Centre, Training
Centre, Common Processing Centre etc. The scheme is implemented by the
Special Purpose Vehicle (SPV) under PPP mode. Government of Maharashtra
in its Industrial Policy 2019 stipulated that Common Facility Centre (CFC)
established under the cluster development programme of Central/ State
Government will be treated as industrial activity. Considering promotional
measures as stipulated in Industrial Policy 2019, MSEDCL intends to
categorise the said usages under industrial category.
9.27.7 Packaged drinking water plants
Packaged drinking water uses water from any source which has to be treated
and disinfected, a process that mainly involve filtration, UV or ozone treatment
or reverse osmosis (RO) before it is fit for human consumption. There are
mainly 4 sections in a packaged drinking water plant: water treatment, bottling,
quality control (lab) and overall utility. Considering nature of usage, MSEDCL
proposes to charge Industrial Tariff to Packaged drinking water plants.
9.27.8 Lighting for religious exhibitions and gatherings
Many times it is observed that religious functions involve multiple activities like
satsang, spiritual book exhibition, talk sessions etc. At field level it is very
difficult to differentiate the usages thus MSEDCL proposes to include lighting
for religious exhibitions & gatherings like satsangs/spiritual gatherings etc.
under Temporary Supply Religious (TSR) category.
9.28 Modification in Tariff Applicability
9.28.1 Explicit clarification regarding supply to large construction projects
Hon’ble Commission’s earlier Tariff Orders stipulate 1 year for temporary
supply. But MERC (Supply Code) Regulation, 2005 mentions limit of 2 years.
MSEDCL proposes the limit of 2 years for Temporary supply. Further, it is
worthwhile to mention that that large construction project take may take longer
time than 2 years for completion. Hence it is proposed that for Construction,
MSEDCL
January 20
248
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
initially supply will be provided under Temporary Supply Others (TSO), after 2
years the supply will be regularized under Non- Residential category.
9.28.2 Sewage Treatment Plants and common effluent treatment plants
Sewage Treatment Plants and effluent treatment plant require attention for
curbing water pollution. In this Petition MSEDCL intends to categorise Sewage
Treatment Plants and effluent treatment plant set up by Local Self-Government
Bodies (Gram Panchayats, Panchayat Samitis, Zilla Parishads, Municipal
Councils and Corporations, etc.), Maharashtra Industries Development
Corporation (MIDC), Industries Association or consortium of industries.,
Housing societies/complexes under Public Water Works and Sewage
Treatment Plants category.
Only Sewage Treatment Plants and common effluent treatment plants of
commercial establishments and of individual industry within its premises will be
charged at respective tariff category.
9.28.3 Information Technology (IT) or IT-enabled Services (ITeS) Unit
The Commission in its earlier Tariff Orders has given preferential treatment to
IT & ITES units conceptualized under IT & ITES Policy of Government of
Maharashtra. Government of Maharashtra in its IT & ITES Policy 2015 (Page
No.12) stipulated following
“ iii) Electricity Tariff: IT/ITES units registered with the Directorate of Industries
will be supplied power at industrial rates applicable under Maharashtra
Electricity Regulatory Commission's (MERC's) tariff orders.”
In past, it has been observed that there has been issue with regards to
permanent registration certificate. It is submitted that Directorate of Industries
issues registration certificate with validity. Validity of units needs to be the basis
of application of industrial tariff. MSEDCL has developed a portal for uploading
registration certificates and IT & ITES Units are require to submit fresh
certificates, before it gets expire. If any unit fails to resubmit the same then the
unit is re-categorised under Non-Residential category.
9.28.4 Public Sanitary Conveniences/Toilets
MSEDCL
January 20
249
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
In earlier Tariff Order Public Sanitary Conveniences have been categorised
under street light category. In present tariff filing MSEDCL proposes that the
same usages may be considered under Public services (Other) category.
9.29 Any Other submission
9.29.1 Decisions of various Regulatory Forums
The Aggregate Revenue Requirement has been arrived at on the basis of
firmed up data from various Utilities like MSPGCL, MSETCL, NTPC etc. Also,
this data in some cases is likely to be revised on account of various reasons
including decisions by the appropriate regulatory forums and judicial
authorities. This is likely to have an additional impact on revenue gap, which
cannot be estimated at this stage. Hon’ble Commission is humbly requested
that as and when such impact is arrived at, the same may please be
considered by the Hon’ble Commission and may permit recovery of the same
with appropriate mechanism with immediate effect.
MSEDCL
January 20
250
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
10 SHARING OF CROSS SUBSIDY IMPACT DUE TO AG CONSUMERS IN MAHARASHTRA
10.1.1 The state of Maharashtra is one of the agrarian State in Indian. Out of
MSEDCL’s total consumer base of around 2.65 crore consumers, MSEDCL
caters to more than 42 Lakhs agricultural category consumers. The share of
the electricity consumption by the agricultural category consumers is ~30 % of
the total electricity consumption of MSEDCL consumers. Historically, the
electricity tariff of the agriculture category consumers is being determined to be
much less than the Average Cost of Supply effectively increasing the tariff of
other category consumers by way of cross subsidy. At the same time, revenue
realised from the agriculture consumers is also less owing to various reasons
such as poor capacity to pay, uncertain agricultural produce due to
unpredictable rainfall etc. This Ag cross subsidy is getting passed on to other
subsidizing consumers of MSEDCL and increasing their tariff further.
10.1.2 The higher tariffs of the cross subsidising consumers of MSEDCL (Industrial,
Commercial, high end residential etc.) is impacting sales and revenue of
MSEDCL thereby requiring tariff hike and thus entering into a vicious circle.
Hence there is a necessity to maintain a balance in tariff of the subsidised AG
consumers and the high end subsidising consumers of MSEDCL.
10.1.3 It is pertinent to note that the consumer base of Mumbai licensees (Tata, Adani,
BEST) as well as other SEZs comprises mostly of high end consumers
(Industrial, Commercial, high end Residential etc.). These consumers have
higher capacity to pay in comparison to the Agricultural category consumers.
For Mumbai Licensees and SEZs, as there are no AG consumers, there is no
impact on the tariff of these consumers because of cross subsidy for agricultural
consumers. Thus, the consumers of Mumbai Licensees and SEZs are
protected from payment of the cross subsidy for AG consumers and since all
AG consumers are in MSEDCL License Area has created imbalance in revenue
recovery.
10.1.4 It is a fact that the benefits of the agricultural produce from the agricultural
consumers of MSEDCL are being enjoyed by all the consumers of Maharashtra
including Mumbai Licensees and SEZs, it is advisable that the impact of such
MSEDCL
January 20
251
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
cross subsidy should also be shared equally by all the consumers of the state
of Maharashtra including those in the area of Mumbai Licensees and SEZs.
This will also reduce differentiation among similar category consumers across
the state. Hon’ble Commission is therefore requested to take the note of the
same and address the issue in the larger benefit of the similarly placed
electricity consumers in the State.
10.1.5 MSEDCL further submits that proposed amendment in the EA 2003 provides
for separation of carriage and contents. As a result, multiple supply Licensees
will be introduced in State and being incumbent Supply Licensee, the impact of
cross subsidy of all AG consumers in MSEDCL area will be on MSEDCL. In
view of this, the cross subsidy impact needs to be distributed amongst all the
supply Licensee in Maharashtra which is in line with the proposed Amendment.
10.1.1 MSEDCL submits that the details of approved ACoS for FY 19-20 of Distribution
Licensee in Maharashtra are summarized as below:
Particulars Units
ARR
Rs. Crs
Sales
MUs
ACOS
Rs./Unit
MSEDCL
TPC-D
AEML-D
BEST
74,179
3,462
7,717
3,440
1,08,369
4,607
8,887
4,870
6.85
7.51
8.68
7.06
10.1.2 From the above table, it is evident that the ACOS of MSEDCL is lowest among
all the Licensees in State.
10.1.3 MSEDCL submits that based on the approved sales and revenue for the
Licensees for FY 19-20, MSEDCL has computed the impact which is
summarized below:
MSEDCL
January 20
252
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Category
ABR
MUs
Rs./Unit Rs./Unit Rs./Unit
HT-V-Ag
ACOS
Cross
Cross
Subsidy Subsidy
Sales
Rs. Crs
804
4.27
6.85
2.58
207
LT IV(A): LT - AG
Unmetered
9,899
3.86
6.85
2.99
2,960
LT IV(B): LT -AG
Metered
21,091
3.74
6.85
3.11
6,559
MSEDCL AG Total
31,793
9,726
MSEDCL Sale (MUs)
1,08,369
TPC-D Sale (MUs)
4,607
AEML-D Sale (MUs)
8,887
BEST Sale (MUs)
4,870
Total Sale in MH (MUs)
1,26,733
Total Ag Sale in MH (MUs)
31,793
Total Subsidising Sale in MH (MUs)
69,299
Total Subsidising Sale in MSEDCL (MUs)
56,270
Ag Cross Subsidy (Rs. Cr.)
9,726
Per Unit Ag Cross Subsidy (Rs./Unit)
Existing Avg. impact on Total Subsidising Sale in
MSEDCL
1.73
If spread on Total Subsidising Sale in MH
1.40
Rs.0.33 p.u.
Reduction in Cross Subsidy for MSEDCL
Impact on Mumbai Licensee
MSEDCL
Rs. (1829) Crs
Rs. 1829 Crs
January 20
253
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
10.1.4 MSEDCL submits that the National Tariff Policy, the Electricity Act and other
enabling provisions has emphasized on protecting the interests of all
stakeholders of electricity sector in the State including consumers. The Hon’ble
Commission has inherent powers to decide the matters in the interest of
consumers as well as Utilities. The relevant extracts are reproduced below:
MERC (MYT) Regulations 2019
106 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.
National Tariff Policy
5.10 Consumer interest is best served in ensuring viability and sustainability of
the entire value chain viz., generation, transmission and distribution of
electricity, while at the same time facilitating power supply at reasonable rate
to consumers.
The Electricity Act 2003
Section 61. (Tariff regulations)
(d) safeguarding of consumers' interest and at the same time, recovery of the
cost of electricity in a reasonable manner;
Section 86. (Functions of State Commission)
(4) In discharge of its functions, the State Commission shall be guided by the
National Electricity Policy, National Electricity Plan and tariff policy published
under section 3
MSEDCL
January 20
254
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
11 WHEELING CHARGES
11.1 Network Cost of MSEDCL
11.1.1 Hon’ble Commission in MYT Regulations 2019 has provided the ratio of
network and supply cost segregation. MSEDCL has considered the same for
segregation of aggregate revenue requirement for the Control Period and
arrived at the Wires Business and Retail Supply Business Cost. Following table
provides the summary of Network Cost of MSEDCL for the Control Period.
Table 190: Network Cost of MSEDCL for FY 2020-21 to FY 2024-25
S. No.
1
2
3
4
5
6
7
8
9
10
11
12
Particulars
Operation & Maintenance Expenses
Depreciation
Interest on Loan Capital
Interest on Working Capital
Interest on deposit from Consumers and
Distribution System Users
Other Finance Charges
Provision for bad and doubtful debts
Opex Schemes
Contribution to contingency reserves
Income Tax
Return on Equity Capital
Total Revenue Expenditure
Rs. Crs
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25
4,536
4,710
4,891
5,078
5,273
2,481
2,670
2,840
2,899
2,953
1,266
1,317
1,222
1,001
771
130
140
145
145
145
54
57
60
63
66
89
87
143
1,550
10,338
94
87
159
1,613
10,847
99
87
171
1,668
11,182
105
87
175
1,711
11,265
111
87
180
1,752
11,338
11.1.2 MSEDCL submits that the Regulation 73.2 of MERC (Multi Year Tariff)
Regulations 2019 provides for computation of wheeling charges separately for
LT voltage, HT voltage and EHT voltage levels. The relevant extract of such
regulations are given below:
“73.2 The Wheeling Charges of the Distribution Licensee shall be determined
by the Commission on the basis of a Petition for determination of Tariff filed by
the Distribution Licensee in accordance with Part B of these Regulations:
Provided that the Wheeling Charges may be denominated in terms of
Rupees/kWh or Rupees/kVAh or Rupees/kW/month or Rupees/kVA/month, for
the purpose of recovery from the Distribution System User, or any such
denomination, as may be stipulated by the Commission:
Provided further that the Wheeling Charges shall be determined separately for
LT voltage, HT voltage, and EHT voltage, as applicable:”
MSEDCL
January 20
255
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
11.1.3 Accordingly, MSEDCL submits that for the Control Period from FY 2020-21 to
FY 2024-25, it is proposed Wheeling Charges for three levels only, EHV (66 kV
and above), HT (combined wheeling charges for 33, 22 & 11 kV) and LT Level.
11.1.4 MSEDCL further submits that it does not maintain audited accounts for voltage
wise assets and thus it does not have segregation between GFA for HT and LT
Levels. Hence, MSEDCL for the purpose of projection has considered GFA
segregated into HT and LT as considered by the Hon’ble Commission in the
Mid Term Review Order dated 12th September 2018. MSEDCL further submits
that in order to arrive at the proportion of GFA for HT Level, it has added the
GFA proportion for 33 kV, 22 kV and 11 kV voltage levels and the same is
shown in the table below.
Table 191: Segregation of GFA for the Control Period
Particulars
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25
HT (Excl EHV)
70%
70%
70%
70%
70%
LT Level
30%
30%
30%
30%
30%
11.1.5 MSEDCL has then applied ratio of Voltage-wise GFA shown in table above to
arrive at GFA of HT (Excluding EHV Level) and LT levels asset which has been
approved by the Hon’ble Commission in its order dated 12th September 2018.
11.1.6 The Network Cost is apportioned among voltage level in the ratio of GFA as
computed above:
Table 192: Network cost apportioned for the Control Period
Particulars
HT (Excl EHV)
LT Level
Rs. Crs
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25
7,237
7,593
7,827
7,886
7,936
3,101
3,254
3,354
3,380
3,401
11.1.7 MSEDCL has considered the voltage wise consumption (in kVAh also) as
projected in Form 1.2 for the respective years of the control period for
determining the wheeling charges. The projected consumption at different
voltage levels is shown below:
MSEDCL
January 20
256
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 193: Voltage Wise Consumption for the Control Period
Particulars
HT (Excl EHV)
LT Level
MUs
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25
30,895
32,100
33,356
34,666
36,034
73,257
75,874
78,641
81,569
84,671
11.1.8 To arrive at the cost of wheeling at the various voltage levels, the total wire
network cost (as computed above) has been apportioned to various voltage
levels (i.e., HT (Excluding EHV) and LT) in the ratio of sales at respective
voltage levels. The wire costs at higher voltage levels have been further
apportioned to lower voltage levels, since the HT system is also being used for
supply to the LT consumers.
Table 194: Calculation of Wheeling Cost for FY 20-21
Network Cost
(Rs. Crs)
HT (Excl EHV)
7,237
LT Level
3,101
Total
10,338
Particulars
Sales
(MUs)
30,895
73,257
1,04,152
% of
Wheeling Cost
Sales
(Rs. Crs)
30%
2,147
70%
8,191
100%
10,338
11.1.9 Using the same methodology as referred above, MSEDCL has computed the
Wheeling Cost for the entire Control Period.
11.1.10
Subsequently, MSEDCL has calculated the share of each voltage
category in the non-coincident peak demand using % sales for each category.
The wheeling charge has then been derived by dividing the wheeling cost of
each voltage category (as computed above) by the non-coincident peak
demand for that category and dividing it by 12 months.
11.1.11
Finally, the wheeling charges for each category have been calculated by
dividing the wheeling charge for each category by the load factor (assumed to
be 66%) and 720 hrs (24x30).
MSEDCL
January 20
257
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 195: Proposed Wheeling Charges for FY 2020-21
Particulars
HT (Excl EHV)
LT Level
Total
Wheeling
Cost
(Rs. Crs)
2,147
8,191
10,338
Share in Non
Wheeling
Coincident
Charge
Demand (MW) (Rs./kW/Month)
4,913
364
12,540
544
17,453
494
Wheeling
Charges
0.77
1.15
1.04
11.1.12
Using the same methodology, as referred above, MSEDCL has
computed the Wheeling Cost for the entire Control Period. The proposed
Wheeling Charges for the Control Period are given below:
Table 196: Proposed Wheeling Charges for the Control Period
Particulars
Units
HT (Excl EHV)
Rs./kVAh
LT Level
Rs./kWh
FY 20-21
0.77
1.15
Rs/Unit
FY 21-22 FY 22-23 FY 23-24 FY 24-25
0.78
0.78
0.77
0.75
1.17
1.17
1.14
1.11
11.1.13
MSEDCL For the purpose of commercial settlement, MSEDCL proposes
to continue following Wheeling Losses which are already approved in previous
Tariff Orders.
Table 197: Proposed Wheeling Losses for the Control Period
Particulars
33 kV
22 kV
11 kV
LT
Wheeling Losses
6.00%
7.50%
9.00%
12.00%
11.1.14
MSEDCL requests the Hon’ble Commission to approve the wheeling
charges as proposed above.
MSEDCL
January 20
258
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
12 TARIFF RECOVERY MECHANISM
12.1 Background
12.1.1 As discussed in previous Chapter, MSEDCL has considered the following while
determining proposed tariff for the Control Period:
 Rationalisation of the fixed charge to ensure recovery of fixed cost from all
consumers;


Revision in definition of Billing Demand
Introduction of kVAh based billing for all HT Consumers


Rationalization of Incentives
Revision in ToD charges etc.
12.1.2 National Tariff Policy envisages that the consumer tariff should progressively
reflect the cost of supply of electricity.
12.1.3 MSEDCL submits that Regulation 6.5 of the MERC (MYT) Regulations 2019
provides for forecast of expected revenue from tariff and charges. The relevant
provisions are reproduced below for reference:
6.5 The forecast of expected revenue from Tariff and charges shall be based
on the following:
(a)………
(b)……..
(c) In the case of a Distribution Licensee, estimates of quantum of electricity to
be supplied to consumers and wheeled on behalf of Distribution System Users
for each year of the Control Period:
Provided that the Distribution Licensee shall submit relevant details of categorywise sales separately for each Distribution Franchisee area, including the Input
Energy and the Input Rate;
(d) Prevailing Tariff as on the date of filing of the Petition.
12.1.4 Accordingly, MSEDCL has projected the revenue at existing tariff considering
the prevailing tariff as on the date of filing the MYT Petition which is based on
the MTR Order dated 12th September 2018.
MSEDCL
January 20
259
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
12.1.5 Therefore, MSEDCL has shown the prevailing tariff (including wheeling
charges) as on the date of filing the MYT Petition and compared the proposed
tariff with the same.
12.2 Rationale of Tariff Hike
12.2.1 It is submitted that Hon’ble Commission in its MTR Order approved total
revenue gap of Rs. 20,651 Crs. However, recovery of only Rs. 8,268 Crs was
allowed over a period of two years. Hon’ble Commission created Regulatory
Assets of Rs. 12,382 Crs. Hon’ble Commission directed MSEDCL, that at the
time of next ARR/Tariff filling process for final true-up of ARR of 3rd Control
Period , MSEDCL should submit its proposal for planned recovery of Regulatory
Asset along with carrying cost for the ensuing years in the next Control Period,
so that recovery of such Regulatory Asset and adjustment of on account of final
true up of Revenue Gap/(Surplus) (if any) shall not exceed for the period of two
years beyond the current Control Period (i.e. 3rd Control Period). This has
major bearing on the recovery of revenue gap during the 4th Control Period.
12.2.2 Therefore, it is necessary for the licensee to seek an appropriate hike in the
tariff, up to the level as proposed and detailed in this petition so as to meet the
bare minimum requirement of the Utility to remain financially viable and to meet
the financial obligation to discharge the liabilities.
12.2.3 Accordingly, MSEDCL in the said petition filed under Section 45, 46, 61, 62, 64
and 86 of the Electricity Act, 2003, for determination of Tariff for fourth control
period i.e. FY 2020-21 to FY 2024-25 has proposed tariff considering the
increase in various costs.
12.2.4 MSEDCL has proposed a revision in fixed and energy charges for various
categories in order to bridge revenue gap. The tariff revision is necessary for
meeting additional costs due to increase in generation & transmission costs,
regulatory assets and legitimate expenses of MSEDCL. The revenue gap has
emerged due to additional costs, which are beyond the control of MSEDCL.
MSEDCL
January 20
260
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
12.2.5 A comparison of detailed Category/ Sub-category wise Existing and Proposed
Fixed/ Demand Charges and Energy Charges (Excluding Wheeling Charges)
is shown in tables below:
MSEDCL
January 20
261
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 198: Comparison of Existing and Proposed Energy Charges (excl. Wheeling Charges) for HT Category (1/2)
Particulars
HT I HT - Industry
HT
EHV
HT I (B): HT - Industry (Seasonal)
HT
EHV
HT II: HT – Commercial
HT
EHV
HT III : HT - Railways/Metro/Monorail Traction
HT
EHV
HT IV: HT - Public Water Works
HT
EHV
HT V(A): HT - Agriculture Pumpsets
HT
EHV
HT V(B): HT - Agriculture - Others
HT
EHV
HT VI: HT - Group Housing Societies (Residential)
HT
EHV
HT VIII(A): HT - Temporary Supply Religious (TSR)
HT
EHV
HT VIII(B): HT - Temporary Supply Others (TSO)
HT
EHV
HT IX: HT - Public Services
HT IX(A): HT - Public Services-Govt.
HT
EHV
HT IX(B): HT - Public Services-Others
HT
EHV
HT X: HT – Electric Vehicle Charging Station
HT
EHV
MSEDCL
FY 2020-21
Energy Charges (Rs/Unit)
% Change over
Existing
Proposed
FY 2019-20
Approved
FY 2021-22
Energy Charges (Rs/Unit)
% Change over
Proposed
FY 2020-21
Proposed
7.07
7.07
7.11
7.11
1%
1%
7.20
7.20
1%
1%
7.34
7.34
7.40
7.40
1%
1%
7.50
7.50
1%
1%
11.73
11.73
11.70
11.70
0%
0%
11.70
11.70
0%
0%
7.00
7.00
7.20
7.20
3%
3%
7.40
7.40
3%
3%
6.30
6.30
6.50
6.50
3%
3%
6.70
6.70
3%
3%
3.77
3.77
3.90
3.90
3%
3%
4.00
4.00
3%
3%
5.20
5.20
5.40
5.40
4%
4%
5.60
5.60
4%
4%
5.82
5.82
6.00
6.00
3%
3%
6.20
6.20
3%
3%
3.75
3.75
3.90
3.90
4%
4%
4.00
4.00
3%
3%
12.00
12.00
12.40
12.40
3%
3%
12.80
12.80
3%
3%
7.90
7.90
8.00
8.00
1%
1%
8.10
8.10
1%
1%
9.70
9.70
9.90
9.90
2%
2%
10.00
10.00
1%
1%
5.24
5.24
5.40
5.40
3%
3%
5.60
5.60
4%
4%
January 20
262
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 199: Comparison of Existing and Proposed Energy Charges (excl. Wheeling Charges) for HT Category (2/2)
Particulars
HT I HT - Industry
HT
EHV
HT I (B): HT - Industry (Seasonal)
HT
EHV
HT II: HT – Commercial
HT
EHV
HT III : HT - Railways/Metro/Monorail Traction
HT
EHV
HT IV: HT - Public Water Works
HT
EHV
HT V(A): HT - Agriculture Pumpsets
HT
EHV
HT V(B): HT - Agriculture - Others
HT
EHV
HT VI: HT - Group Housing Societies (Residential)
HT
EHV
HT VIII(A): HT - Temporary Supply Religious (TSR)
HT
EHV
HT VIII(B): HT - Temporary Supply Others (TSO)
HT
EHV
HT IX: HT - Public Services
HT IX(A): HT - Public Services-Govt.
HT
EHV
HT IX(B): HT - Public Services-Others
HT
EHV
HT X: HT – Electric Vehicle Charging Station
HT
EHV
MSEDCL
FY 2022-23
Energy Charges (Rs/Unit)
% Change over
Proposed
FY 2021-22
Proposed
FY 2023-24
Energy Charges (Rs/Unit)
% Change over
Proposed
FY 2022-23
Proposed
FY 2024-25
Energy Charges (Rs/Unit)
% Change over
Proposed
FY 2023-24
Proposed
7.30
7.30
1%
1%
7.40
7.40
1%
1%
7.47
7.47
1%
1%
7.60
7.60
1%
1%
7.70
7.70
1%
1%
7.80
7.80
1%
1%
11.70
11.70
0%
0%
11.70
11.70
0%
0%
11.70
11.70
0%
0%
7.60
7.60
3%
3%
7.80
7.80
3%
3%
8.00
8.00
3%
3%
6.90
6.90
3%
3%
7.10
7.10
3%
3%
7.30
7.30
3%
3%
4.10
4.10
2%
2%
4.20
4.20
2%
2%
4.30
4.30
2%
2%
5.80
5.80
4%
4%
6.00
6.00
3%
3%
6.20
6.20
3%
3%
6.40
6.40
3%
3%
6.60
6.60
3%
3%
6.80
6.80
3%
3%
4.10
4.10
2%
2%
4.20
4.20
2%
2%
4.30
4.30
2%
2%
13.20
13.20
3%
3%
13.60
13.60
3%
3%
14.00
14.00
3%
3%
8.20
8.20
1%
1%
8.30
8.30
1%
1%
8.40
8.40
1%
1%
10.10
10.10
1%
1%
10.20
10.20
1%
1%
10.30
10.30
1%
1%
5.80
5.80
4%
4%
6.00
6.00
3%
3%
6.20
6.20
3%
3%
January 20
263
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 200: Comparison of Existing and Proposed Energy Charges (excl. Wheeling Charges) for LT Category (1/4)
Particulars
LT Residential
LT I(A): LT - Residential-BPL
LT I(B): LT - Residential
1-100 units
101-300 units
301-500 units
>500 units
LT II: LT - Non-Residential
(A1) (i): 0 – 20 kVA (Upto 200 units per month)
(A1) (ii): 0 – 20 kVA (Above 200 units per month)
(A1) (iii) 0-20 kVA (Single phase)
(B): >20 kVA and ≤ 50 kVA
(C): >50 KVA
LT III: LT - Public Water Works (PWW)
(A): 0-20 KVA
(B): >20 kVA and ≤ 40 kVA
(C): >40 KVA
LT IV: LT - Agriculture
LT IV(A): LT - AG Un-metered - Pumpsets
Category 1 Zones (Above 1318 Hrs/HP/Annum)
(a) 0-5 HP
(b) Above 5 HP - 7.5 HP
(c) Above 7.5 HP
Category 2 Zones (Below 1318 Hrs/HP/Annum)
(a) 0-5 HP
(b) Above 5 HP - 7.5 HP
(c) Above 7.5 HP
LT IV(B): LT - Agriculture Metered Tariff - Pumpsets
LT IV(C): LT - Agriculture Metered – Others
MSEDCL
FY 2020-21
Energy Charges (Rs/unit)
% Change over
Existing
Proposed
FY 2019-20
Approved
1.10
1.36
3.05
6.95
9.90
11.50
3.30
7.30
9.90
11.50
24%
8%
5%
0%
0%
FY 2021-22
Energy Charges (Rs/unit)
% Change over
Proposed
FY 2020-21
Proposed
1.40
3%
3.50
7.50
9.90
11.50
6%
3%
0%
0%
6.10
9.25
6.10-9.25
9.30
11.60
7.90
8.10
3%
7.90
9.50
11.60
2%
0%
8.10
9.80
11.80
3%
3%
2%
2.15
3.50
4.80
2.30
3.60
4.90
7%
3%
2%
2.40
3.70
5.00
4%
3%
2%
Rs./HP/Month
Rs./HP/Month
374
403
452
400
430
480
7%
7%
6%
420
455
505
5%
6%
5%
288
316
366
2.09
3.51
310
335
390
2.20
3.70
8%
6%
7%
5%
5%
330
355
410
2.30
3.80
6%
6%
5%
5%
3%
January 20
264
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 201: Comparison of Existing and Proposed Energy Charges (excl. Wheeling Charges) for LT Category (2/4)
FY 2022-23
Energy Charges (Rs/unit)
% Change over
Proposed
FY 2021-22
Proposed
Particulars
LT Residential
LT I(A): LT - Residential-BPL
LT I(B): LT - Residential
1-100 units
101-300 units
301-500 units
>500 units
LT II: LT - Non-Residential
(A1) (i): 0 – 20 kVA (Upto 200 units per month)
(A1) (ii): 0 – 20 kVA (Above 200 units per month)
(A1) (iii) 0-20 kVA (Single phase)
(B): >20 kVA and ≤ 50 kVA
(C): >50 KVA
LT III: LT - Public Water Works (PWW)
(A): 0-20 KVA
(B): >20 kVA and ≤ 40 kVA
(C): >40 KVA
LT IV: LT - Agriculture
LT IV(A): LT - AG Un-metered - Pumpsets
Category 1 Zones (Above 1318 Hrs/HP/Annum)
(a) 0-5 HP
(b) Above 5 HP - 7.5 HP
(c) Above 7.5 HP
Category 2 Zones (Below 1318 Hrs/HP/Annum)
(a) 0-5 HP
(b) Above 5 HP - 7.5 HP
(c) Above 7.5 HP
LT IV(B): LT - Agriculture Metered Tariff - Pumpsets
LT IV(C): LT - Agriculture Metered – Others
MSEDCL
FY 2023-24
Energy Charges (Rs/unit)
% Change over
Proposed
FY 2022-23
Proposed
FY 2024-25
Energy Charges (Rs/unit)
% Change over
Proposed
FY 2023-24
Proposed
1.50
7%
1.60
7%
1.70
6%
3.70
7.70
9.90
11.50
6%
3%
0%
0%
3.90
7.90
9.90
11.60
5%
3%
0%
1%
4.10
8.10
9.90
11.70
5%
3%
0%
1%
8.30
2%
8.50
2%
8.70
2%
8.30
10.10
12.00
2%
3%
2%
8.50
10.40
12.10
2%
3%
1%
8.70
10.70
12.20
2%
3%
1%
2.50
3.80
5.20
4%
3%
4%
2.60
3.90
5.40
4%
3%
4%
2.70
4.00
5.60
4%
3%
4%
Rs./HP/Month
Rs./HP/Month
Rs./HP/Month
445
480
535
6%
5%
6%
470
505
565
6%
5%
6%
495
535
595
5%
6%
5%
350
375
435
2.40
4.00
6%
6%
6%
4%
5%
370
395
460
2.50
4.20
6%
5%
6%
4%
5%
390
415
485
2.60
4.40
5%
5%
5%
4%
5%
January 20
265
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 202: Comparison of Existing and Proposed Energy Charges (excl. Wheeling Charges) for LT Category (3/4)
Particulars
LT V (A): LT - Industry - Powerlooms
(i): 0-20 KVA
(ii): Above 20 KVA
(iii) 0-20 kVA (Single phase)
LT V(B): LT - Industry - General
(i): 0-20 KVA
(ii): Above 20 KVA
(iii) 0-20 kVA (Single phase)
LT VI: LT - Street Light
(A): Grampanchayat; A B & C Class Municipal Council
(B): Municipal corporation Area
LT VII: LT - Temporary Connection
(A): LT - Temporary Supply Religious (TSR)
(B): LT - Temporary Supply Others (TSO)
LT VIII: LT - Advertisements and Hoardings
LT IX: LT - Crematorium and Burial Grounds
LT X (A) - Public Services – Govt.
(i): ≤ 20 kVA Upto 200 units)
(i): ≤ 20 kVA (Above 200 units)
(ia) ≤ 20 kVA (Single phase)
(ii): >20 - ≤ 50 kVA
iii): >50 kVA
LT X(B) - Public Services - Others
(i): ≤ 20 kVA Upto 200 units)
(i): ≤ 20 kVA (Above 200 units)
(ia) ≤ 20 kVA (Single phase)
(ii): >20 - ≤ 50 kVA
(iii): >50 kVA
LT XI – Electric Vehicle Charging Station
MSEDCL
FY 2020-21
Energy Charges (Rs/unit)
% Change over
Existing
Proposed
FY 2019-20
Approved
FY 2021-22
Energy Charges (Rs/unit)
% Change over
Proposed
FY 2020-21
Proposed
4.69
6.02
4.69
4.90
6.30
4.90
4%
5%
4%
5.10
6.40
5.10
4%
2%
4%
4.81
5.70
4.81
5.00
5.90
5.00
4%
4%
4%
5.30
6.20
5.30
6%
5%
6%
4.80
5.85
4.90
6.00
2%
3%
5.00
6.20
2%
3%
3.27
12.79
12.00
3.26
3.40
13.20
12.40
3.40
4%
3%
3%
4%
3.50
13.60
12.80
3.50
3%
3%
3%
3%
3.70
3.90
5%
3.70
4.50
5.70
3.90
4.70
6.00
5%
4%
5%
6.10
5%
6.10
7.50
8.00
5.30
5%
6%
5%
6%
3.00
4.20
3.00-4.20
4.30
5.40
4.25
6.90
4.25-6.90
6.80
7.20
4.72
January 20
5%
6%
5.80
5.80
7.10
7.60
5.00
4%
6%
6%
266
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 203: Comparison of Existing and Proposed Energy Charges (excl. Wheeling Charges) for LT Category (4/4)
FY 2022-23
Energy Charges (Rs/unit)
% Change over
Proposed
FY 2021-22
Proposed
Particulars
LT V (A): LT - Industry - Powerlooms
(i): 0-20 KVA
(ii): Above 20 KVA
(iii) 0-20 kVA (Single phase)
LT V(B): LT - Industry - General
(i): 0-20 KVA
(ii): Above 20 KVA
(iii) 0-20 kVA (Single phase)
LT VI: LT - Street Light
(A): Grampanchayat; A B & C Class Municipal Council
(B): Municipal corporation Area
LT VII: LT - Temporary Connection
(A): LT - Temporary Supply Religious (TSR)
(B): LT - Temporary Supply Others (TSO)
LT VIII: LT - Advertisements and Hoardings
LT IX: LT - Crematorium and Burial Grounds
LT X (A) - Public Services – Govt.
(i): ≤ 20 kVA *Upto 200 units)
(i): ≤ 20 kVA (Above 200 units)
(ia) ≤ 20 kVA (Single phase)
(ii): >20 - ≤ 50 kVA
iii): >50 kVA
LT X(B) - Public Services - Others
(i): ≤ 20 kVA Upto 200 units)
(i): ≤ 20 kVA (Above 200 units)
(ia) ≤ 20 kVA (Single phase)
(ii): >20 - ≤ 50 kVA
(iii): >50 kVA
LT XI – Electric Vehicle Charging Station
MSEDCL
FY 2023-24
Energy Charges (Rs/unit)
% Change over
Proposed
FY 2022-23
Proposed
FY 2024-25
Energy Charges (Rs/unit)
% Change over
Proposed
FY 2023-24
Proposed
5.40
6.60
5.40
6%
3%
6%
5.70
6.80
5.70
6%
3%
6%
6.00
7.00
6.00
5%
3%
5%
5.60
6.50
5.60
6%
5%
6%
5.90
6.80
5.90
5%
5%
5%
6.20
7.10
6.20
5%
4%
5%
5.20
6.40
4%
3%
5.40
6.60
4%
3%
5.60
6.80
4%
3%
3.60
14.00
13.20
3.60
3%
3%
3%
3%
3.70
14.40
13.60
3.70
3%
3%
3%
3%
3.80
14.80
14.00
3.80
3%
3%
3%
3%
4.10
5%
4.30
5%
4.50
5%
4.10
4.90
6.30
5%
4%
5%
4.30
5.10
6.60
5%
4%
5%
4.50
5.40
6.90
5%
6%
5%
6.40
5%
6.70
5%
7.00
4%
6.40
7.90
8.40
5.60
5%
5%
5%
6%
6.70
8.30
8.80
5.90
5%
5%
5%
5%
7.00
8.70
9.20
6.20
4%
5%
5%
5%
January 20
267
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 204: Comparison of Existing and Proposed Fixed Charges for HT Category (1/2)
Particulars
HT I HT - Industry
HT, EHV
HT I (B): HT - Industry (Seasonal)
HT, EHV
HT II: HT – Commercial
HT, EHV
HT III : HT - Railways/Metro/Monorail Traction
HT, EHV
HT IV: HT - Public Water Works
HT, EHV
HT V(A): HT - Agriculture Pumpsets
HT, EHV
HT V(B): HT - Agriculture - Others
HT, EHV
HT VI: HT - Group Housing Societies (Residential)
HT, EHV
HT VIII(A): HT - Temporary Supply Religious (TSR)
HT, EHV
HT VIII(B): HT - Temporary Supply Others (TSO)
HT, EHV
HT IX: HT - Public Services
HT IX(A): HT - Public Services-Govt.
HT, EHV
HT IX(B): HT - Public Services-Others
HT, EHV
HT X: HT – Electric Vehicle Charging Station
HT, EHV
MSEDCL
FY 2020-21
Fixed Charges (Rs/kVA/mth)
% Change over
Existing
Proposed
FY 2019-20
Approved
FY 2021-22
Fixed Charges (Rs/kVA/mth)
% Change over
Proposed
FY 2020-21
Proposed
391
431
10%
475
10%
391
431
10%
464
8%
391
421
8%
453
8%
391
431
10%
464
8%
391
421
8%
453
8%
69
87
26%
94
8%
69
87
26%
94
8%
313
337
8%
363
8%
418
460
10%
495
8%
391
431
10%
464
8%
391
421
8%
453
8%
391
421
8%
453
8%
70
76
9%
82
8%
January 20
268
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 205: Comparison of Existing and Proposed Fixed Charges for HT Category (2/2)
Particulars
HT I HT - Industry
HT, EHV
HT I (B): HT - Industry (Seasonal)
HT, EHV
HT II: HT – Commercial
HT, EHV
HT III : HT - Railways/Metro/Monorail Traction
HT, EHV
HT IV: HT - Public Water Works
HT, EHV
HT V(A): HT - Agriculture Pumpsets
HT, EHV
HT V(B): HT - Agriculture - Others
HT, EHV
HT VI: HT - Group Housing Societies (Residential)
HT, EHV
HT VIII(A): HT - Temporary Supply Religious (TSR)
HT, EHV
HT VIII(B): HT - Temporary Supply Others (TSO)
HT, EHV
HT IX: HT - Public Services
HT IX(A): HT - Public Services-Govt.
HT, EHV
HT IX(B): HT - Public Services-Others
HT, EHV
HT X: HT – Electric Vehicle Charging Station
HT, EHV
MSEDCL
FY 2022-23
Fixed Charges (Rs/kVA/mth)
% Change over
Proposed
FY 2021-22
Proposed
FY 2023-24
Fixed Charges (Rs/kVA/mth)
% Change over
Proposed
FY 2022-23
Proposed
FY 2024-25
Fixed Charges (Rs/kVA/mth)
% Change over
Proposed
FY 2023-24
Proposed
523
10%
576
10%
634
10%
499
8%
537
8%
578
8%
487
8%
524
8%
564
8%
499
8%
537
8%
578
8%
487
8%
524
8%
564
8%
102
9%
110
8%
119
8%
102
9%
110
8%
119
8%
391
8%
421
8%
453
8%
533
8%
573
8%
616
8%
499
8%
537
8%
578
8%
487
8%
524
8%
564
8%
487
8%
524
8%
564
8%
89
9%
96
8%
104
8%
January 20
269
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 206: Comparison of Existing and Proposed Fixed Charges for LT Category (1/4)
Particulars
LT Residential
LT I(A): LT - Residential-BPL
LT I(B): LT - Residential
1-100 units
101-300 units
301-500 units
>500 units
Three Phase Charges
LT II: LT - Non-Residential
(A1) (i): 0 – 20 kVA (Upto 200 units per month)
(A1) (ii): 0 – 20 kVA (Above 200 units per month)
(A2) 0-20 kVA (Single phase)
(B): >20 kVA and ≤ 50 kVA
(C): >50 KVA
LT III: LT - Public Water Works (PWW)
(A): 0-20 kVA
(B): >20 kVA and ≤ 50 kVA
(C): >50 KVA
LT IV: LT - Agriculture
LT IV(B): LT - Agriculture Metered Tariff - Pumpsets
LT IV(C): LT - Agriculture Metered – Others
MSEDCL
Units (Existing)
Units
(Proposed)
Existing
FY 2020-21
Fixed Charges
% Change over
Proposed
FY 2019-20
Approved
FY 2021-22
Fixed Charges
% Change over
Proposed
FY 2020-21
Proposed
Rs/conn/mth
Rs/conn/mth
25
25
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
90
90
90
90
320
100
110
110
120
350
11%
22%
22%
33%
9%
105
116
116
132
382
5%
5%
5%
10%
9%
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
391
391
391
391
391
207
-
218
5%
411
411
411
5%
5%
5%
432
432
432
5%
5%
5%
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
97
117
146
102
123
154
5%
5%
5%
108
130
162
6%
6%
5%
Rs/HP/mth
Rs/kW/mth
Rs/HP/mth
Rs/kW/mth
40
108
42
114
5%
6%
45
120
7%
5%
January 20
0%
25
0%
270
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 207: Comparison of Existing and Proposed Fixed Charges for LT Category (2/4)
Particulars
LT Residential
LT I(A): LT - Residential-BPL
LT I(B): LT - Residential
1-100 units
101-300 units
301-500 units
>500 units
Three Phase Charges
LT II: LT - Non-Residential
(A1) (i): 0 – 20 kVA (Upto 200 units per month)
(A1) (ii): 0 – 20 kVA (Above 200 units per month)
(A2) 0-20 kVA (Single phase)
(B): >20 kVA and ≤ 50 kVA
(C): >50 KVA
LT III: LT - Public Water Works (PWW)
(A): 0-20 kVA
(B): >20 kVA and ≤ 50 kVA
(C): >50 KVA
LT IV: LT - Agriculture
LT IV(B): LT - Agriculture Metered Tariff - Pumpsets
LT IV(C): LT - Agriculture Metered – Others
MSEDCL
FY 2022-23
Fixed Charges
% Change over
Proposed
FY 2021-22
Proposed
FY 2023-24
Fixed Charges
% Change over
Proposed
FY 2022-23
Proposed
FY 2024-25
Fixed Charges
% Change over
Proposed
FY 2023-24
Proposed
Units (Existing)
Units
(Proposed)
Rs/conn/mth
Rs/conn/mth
25
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
Rs/conn/mth
111
122
122
146
417
6%
5%
5%
11%
9%
117
129
129
161
455
5%
6%
6%
10%
9%
123
136
136
178
497
5%
5%
5%
11%
9%
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
229
5%
241
5%
254
5%
454
454
454
5%
5%
5%
477
477
477
5%
5%
5%
501
501
501
5%
5%
5%
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
114
137
171
6%
5%
6%
120
144
180
5%
5%
5%
126
152
189
5%
6%
5%
Rs/HP/mth
Rs/kW/mth
Rs/HP/mth
Rs/kW/mth
48
126
7%
5%
51
133
6%
6%
54
140
6%
5%
January 20
0%
25
0%
25
0%
271
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 208: Comparison of Existing and Proposed Fixed Charges for LT Category (3/4)
Particulars
LT V (A): LT - Industry - Powerlooms
(i): 0-20 KVA
(ii): Above 20 KVA
(iii) 0-20 kVA (Single phase)
LT V(B): LT - Industry - General
(i): 0-20 KVA
(ii): Above 20 KVA
(iii) 0-20 kVA (Single phase)
LT VI: LT - Street Light
(A): Grampanchayat; A B & C Class Municipal Council
(B): Municipal corporation Area
LT VII: LT - Temporary Connection
(A): LT - Temporary Supply Religious (TSR)
(B): LT - Temporary Supply Others (TSO)
LT VIII: LT - Advertisements and Hoardings
LT IX: LT - Crematorium and Burial Grounds
LT X (A) - Public Services – Govt.
(i): ≤ 20 kVA (Upto 200 units)
(i): ≤ 20 kVA (Above 200 units)
(ia) 0-20 kVA (Single phase)
(ii): >20 - ≤ 50 kVA
iii): >50 kVA
LT X(B) - Public Services - Others
(i): ≤ 20 kVA (Upto 200 units)
(i): ≤ 20 kVA (Above 200 units)
(ia) 0-20 kVA (Single phase)
(ii): >20 - ≤ 50 kVA
iii): >50 kVA
LT XI – Electric Vehicle Charging Station
MSEDCL
Units (Existing)
Units
(Proposed)
Existing
FY 2020-21
Fixed Charges
% Change over
Proposed
FY 2019-20
Approved
FY 2021-22
Fixed Charges
% Change over
Proposed
FY 2020-21
Proposed
Rs/Conn/mth
Rs/kVA/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/Conn/mth
441
294
441
158
309
463
5%
5%
166
325
486
5%
5%
5%
Rs/Conn/mth
Rs/kVA/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/Conn/mth
441
294
441
158
309
463
5%
5%
166
325
486
5%
5%
5%
Rs/kW/mth
Rs/kW/mth
Rs/kW/mth
Rs/kW/mth
108
108
114
114
6%
6%
120
120
5%
5%
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
443
449
833
438
466
472
875
460
5%
5%
5%
5%
490
496
919
483
5%
5%
5%
5%
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
323
323
323
323
323
161
-
170
6%
340
340
340
5%
5%
5%
357
357
357
5%
5%
5%
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
351
351
351
351
351
70
252
-
265
5%
369
369
369
74
5%
5%
5%
6%
388
388
388
78
5%
5%
5%
5%
January 20
272
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 209: Comparison of Existing and Proposed Fixed Charges for LT Category (4/4)
Particulars
LT V (A): LT - Industry - Powerlooms
(i): 0-20 KVA
(ii): Above 20 KVA
(iii) 0-20 kVA (Single phase)
LT V(B): LT - Industry - General
(i): 0-20 KVA
(ii): Above 20 KVA
(iii) 0-20 kVA (Single phase)
LT VI: LT - Street Light
(A): Grampanchayat; A B & C Class Municipal Council
(B): Municipal corporation Area
LT VII: LT - Temporary Connection
(A): LT - Temporary Supply Religious (TSR)
(B): LT - Temporary Supply Others (TSO)
LT VIII: LT - Advertisements and Hoardings
LT IX: LT - Crematorium and Burial Grounds
LT X (A) - Public Services – Govt.
(i): ≤ 20 kVA (Upto 200 units)
(i): ≤ 20 kVA (Above 200 units)
(ia) 0-20 kVA (Single phase)
(ii): >20 - ≤ 50 kVA
iii): >50 kVA
LT X(B) - Public Services - Others
(i): ≤ 20 kVA (Upto 200 units)
(i): ≤ 20 kVA (Above 200 units)
(ia) 0-20 kVA (Single phase)
(ii): >20 - ≤ 50 kVA
iii): >50 kVA
LT XI – Electric Vehicle Charging Station
MSEDCL
FY 2022-23
Fixed Charges
% Change over
FY 2021-22
Proposed
Proposed
FY 2023-24
Fixed Charges
% Change over
FY 2022-23
Proposed
Proposed
FY 2024-25
Fixed Charges
% Change over
FY 2023-24
Proposed
Proposed
Units (Existing)
Units
(Proposed)
Rs/Conn/mth
Rs/kVA/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/Conn/mth
175
342
510
5%
5%
5%
184
360
536
5%
5%
5%
194
378
563
5%
5%
5%
Rs/Conn/mth
Rs/kVA/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/Conn/mth
175
342
510
5%
5%
5%
184
360
536
5%
5%
5%
194
378
563
5%
5%
5%
Rs/kW/mth
Rs/kW/mth
Rs/kW/mth
Rs/kW/mth
126
126
5%
5%
133
133
6%
6%
140
140
5%
5%
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
515
521
965
508
5%
5%
5%
5%
541
548
1,014
534
5%
5%
5%
5%
569
576
1,065
561
5%
5%
5%
5%
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
179
5%
188
5%
198
5%
375
375
375
5%
5%
5%
394
394
394
5%
5%
5%
414
414
414
5%
5%
5%
Rs/Conn/mth
Rs/Conn/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/Conn/mth
Rs/kVA/mth
Rs/kVA/mth
Rs/kVA/mth
279
5%
293
5%
308
5%
408
408
408
82
5%
5%
5%
5%
429
429
429
87
5%
5%
5%
6%
451
451
451
92
5%
5%
5%
6%
January 20
273
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
12.3 Proposed Recovery from Tariff
12.3.1 Following table summarised the year on year increase in ACoS along with the recovery from revised tariff.
Financial Year
Revenue at Existing Tariff (Rs. Crs)
Revenue at Proposed Tariff (Rs. Crs)
Revenue Recovery (Rs. Crs)
Sales (MU)
Average Cost of Supply (ACoS) (Rs/kWh)
% Increase/Decrease
Approved for
FY 19-20
69,086
74,179
5,093
1,08,369
6.85
FY 20-21
FY 21-22
FY 22-23
FY 23-24
FY 24-25
76,998
82,925
79,927
88,887
83,018
95,051
86,310
1,01,390
89,801
1,08,160
5,928
8,960
12,033
15,080
18,358
1,14,510
1,18,884
1,23,506
1,28,397
1,33,580
7.24
7.48
7.70
7.90
8.10
5.80%
3.25%
2.93%
2.61%
2.54%
12.4 ABR/ACoS Ratio
12.4.1 Following Tables provides the ABR/ACOS ratio for the Control Period.
MSEDCL
January 20
274
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 210: ABR and Cross Subsidy trajectory for FY 2020-21
Category
HT I (A): HT - Industry
HT II: HT - Commercial
HT III: HT - Railways/Metro/Monorail Traction
HT IV: HT - Public Water Works (PWW)
HT V: HT - Agriculture Pumps
HT VI: HT - Group Housing Societies (Residential)
HT VIII: HT - Temporary Supply
HT IX : HT - Public Services Govt
HT IX : HT - Public Services Others
HT Total
LT I: LT - Residential
LT II: LT - Non-Residential
LT III: LT - Public Water Works (PWW)
LT IV: LT - Agriculture Metered
LT V (A): LT - Industry - Power Looms
LT V (B): LT - Industry – General
LT VI: LT - Street Light
LT VIII: LT - Advertisements and Hoardings
LT IX: LT - Crematorium and Burial Grounds
LT X- Public Services Govt.
LT X- Public Services Others
LT Total
MSEDCL
Ratio of Average Billing Rate
Average Billing Rate
Projected
to Projected Average Cost of
(Rs./kVAh) or (Rs/kWh)
% increase
Average
Supply (%)
/ decrease % increase
Cost of
in Cross- in tariff (%)
Existing
Proposed Existing Tariff Proposed
Supply
subsidy
Tariff for FY Tariff for for FY 2019- Tariff for FY
(Rs/kWh)
2019-20 FY 2020-21
20
2020-21
7.24
8.42
14.16
8.89
7.49
4.27
7.76
13.29
9.63
11.65
8.59
7.22
11.79
4.17
3.74
7.12
8.61
6.58
18.05
5.04
8.71
8.85
6.12
9.04
15.27
10.57
8.21
4.50
8.40
16.85
10.73
12.71
9.12
7.21
11.46
4.18
3.71
7.33
8.82
6.50
20.39
5.15
7.10
9.43
6.15
January 20
114%
191%
120%
101%
58%
105%
180%
130%
157%
116%
98%
159%
56%
50%
96%
116%
89%
244%
68%
118%
120%
83%
125%
211%
146%
113%
62%
116%
233%
148%
175%
126%
100%
158%
58%
51%
101%
122%
90%
282%
71%
98%
130%
85%
11%
20%
26%
12%
4%
11%
53%
18%
18%
10%
2%
-1%
2%
1%
5%
6%
1%
38%
3%
-20%
10%
2%
7%
8%
19%
10%
5%
8%
27%
11%
9%
6%
0%
-3%
0%
-1%
3%
2%
-1%
13%
2%
-18%
7%
0%
275
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 211: ABR and Cross Subsidy trajectory for FY 2021-22
Category
HT I (A): HT - Industry
HT II: HT - Commercial
HT III: HT - Railways/Metro/Monorail Traction
HT IV: HT - Public Water Works (PWW)
HT V: HT - Agriculture Pumps
HT VI: HT - Group Housing Societies (Residential)
HT VIII: HT - Temporary Supply
HT IX : HT - Public Services Govt
HT IX : HT - Public Services Others
HT Total
LT I: LT - Residential
LT II: LT - Non-Residential
LT III: LT - Public Water Works (PWW)
LT IV: LT - Agriculture Metered
LT V (A): LT - Industry - Power Looms
LT V (B): LT - Industry – General
LT VI: LT - Street Light
LT VIII: LT - Advertisements and Hoardings
LT IX: LT - Crematorium and Burial Grounds
LT X- Public Services Govt.
LT X- Public Services Others
LT Total
MSEDCL
Ratio of Average Billing Rate
Average Billing Rate
Projected
to Projected Average Cost of
(Rs./kVAh) or (Rs/kWh)
% increase
Average
Supply (%)
/ decrease % increase
Cost of
in Cross- in tariff (%)
Proposed
Proposed
Proposed
Supply
Proposed Tariff
subsidy
(Rs/kWh) Tariff for FY Tariff for FY Tariff for for FY 2021-22
2020-21
2021-22
FY 2020-21
7.48
9.04
15.27
10.57
8.21
4.50
8.40
16.85
10.73
12.71
9.12
7.21
11.46
4.18
3.71
7.33
8.82
6.50
20.39
5.15
7.10
9.43
6.15
January 20
9.25
15.44
11.00
8.50
4.58
8.81
17.76
11.07
12.98
9.31
7.47
11.72
4.30
3.85
7.52
9.23
6.61
21.31
5.28
7.37
9.82
6.40
125%
211%
146%
113%
62%
116%
233%
148%
175%
126%
100%
158%
58%
51%
101%
122%
90%
282%
71%
98%
130%
85%
124%
207%
147%
114%
61%
118%
238%
148%
174%
124%
100%
157%
58%
51%
101%
123%
88%
285%
71%
99%
131%
86%
-1%
-4%
1%
0%
-1%
2%
5%
0%
-2%
-2%
0%
-2%
0%
0%
-1%
2%
-1%
3%
-1%
1%
1%
1%
2%
1%
4%
4%
2%
5%
5%
3%
2%
2%
4%
2%
3%
4%
3%
5%
2%
5%
2%
4%
4%
4%
276
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 212: ABR and Cross Subsidy trajectory for FY 2022-23
Category
HT I (A): HT - Industry
HT II: HT - Commercial
HT III: HT - Railways/Metro/Monorail Traction
HT IV: HT - Public Water Works (PWW)
HT V: HT - Agriculture Pumps
HT VI: HT - Group Housing Societies (Residential)
HT VIII: HT - Temporary Supply
HT IX : HT - Public Services Govt
HT IX : HT - Public Services Others
HT Total
LT I: LT - Residential
LT II: LT - Non-Residential
LT III: LT - Public Water Works (PWW)
LT IV: LT - Agriculture Metered
LT V (A): LT - Industry - Power Looms
LT V (B): LT - Industry – General
LT VI: LT - Street Light
LT VIII: LT - Advertisements and Hoardings
LT IX: LT - Crematorium and Burial Grounds
LT X- Public Services Govt.
LT X- Public Services Others
LT Total
MSEDCL
Ratio of Average Billing
Average Billing Rate
Projected
Rate to Projected Average
(Rs./kVAh) or (Rs/kWh)
% increase
Average
Cost of Supply (%)
/ decrease % increase
Cost of
in Cross- in tariff (%)
Proposed
Proposed
Proposed
Supply
Proposed Tariff subsidy
(Rs/kWh) Tariff for FY Tariff for FY Tariff for for FY 2022-23
2021-22
2022-23
FY 2021-22
7.70
9.25
15.44
11.00
8.50
4.58
8.81
17.76
11.07
12.98
9.31
7.47
11.72
4.30
3.85
7.52
9.23
6.61
21.31
5.28
7.37
9.82
6.40
January 20
9.46
15.60
11.42
8.78
4.66
9.24
18.72
11.41
13.25
9.49
7.73
11.94
4.41
3.96
7.78
9.63
6.79
22.24
5.39
7.62
10.20
6.64
124%
207%
147%
114%
61%
118%
238%
148%
174%
124%
100%
157%
58%
51%
101%
123%
88%
285%
71%
99%
131%
86%
123%
203%
148%
114%
61%
120%
243%
148%
172%
123%
100%
155%
57%
51%
101%
125%
88%
289%
70%
99%
132%
86%
-1%
-4%
1%
0%
-1%
2%
6%
0%
-1%
-1%
0%
-1%
0%
0%
1%
2%
0%
4%
-1%
1%
1%
1%
2%
1%
4%
3%
2%
5%
5%
3%
2%
2%
3%
2%
3%
3%
4%
4%
3%
4%
2%
3%
4%
4%
277
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 213: ABR and Cross Subsidy trajectory for FY 2023-24
Category
HT I (A): HT - Industry
HT II: HT - Commercial
HT III: HT - Railways/Metro/Monorail Traction
HT IV: HT - Public Water Works (PWW)
HT V: HT - Agriculture Pumps
HT VI: HT - Group Housing Societies (Residential)
HT VIII: HT - Temporary Supply
HT IX : HT - Public Services Govt
HT IX : HT - Public Services Others
HT Total
LT I: LT - Residential
LT II: LT - Non-Residential
LT III: LT - Public Water Works (PWW)
LT IV: LT - Agriculture Metered
LT V (A): LT - Industry - Power Looms
LT V (B): LT - Industry – General
LT VI: LT - Street Light
LT VIII: LT - Advertisements and Hoardings
LT IX: LT - Crematorium and Burial Grounds
LT X- Public Services Govt.
LT X- Public Services Others
LT Total
MSEDCL
Ratio of Average Billing
Average Billing Rate
Projected
Rate to Projected Average
(Rs./kVAh) or (Rs/kWh)
% increase
Average
Cost of Supply (%)
/ decrease % increase
Cost of
in Cross- in tariff (%)
Proposed
Proposed
Proposed
Supply
Proposed Tariff
subsidy
Tariff for FY Tariff for FY Tariff for
(Rs/kWh)
for FY 2023-24
2022-23
2023-24 FY 2022-23
7.90
9.46
15.60
11.42
8.78
4.66
9.24
18.72
11.41
13.25
9.49
7.73
11.94
4.41
3.96
7.78
9.63
6.79
22.24
5.39
7.62
10.20
6.64
January 20
9.67
15.76
11.84
9.05
4.73
9.68
19.73
11.76
13.52
9.66
7.96
12.14
4.50
4.05
8.03
10.01
6.94
23.20
5.47
7.85
10.55
6.86
123%
203%
148%
114%
61%
120%
243%
148%
172%
123%
100%
155%
57%
51%
101%
125%
88%
289%
70%
99%
132%
86%
122%
200%
150%
115%
60%
123%
250%
149%
171%
122%
101%
154%
57%
51%
102%
127%
88%
294%
69%
99%
134%
87%
-1%
-3%
2%
0%
-1%
2%
7%
1%
-1%
-1%
0%
-2%
0%
0%
1%
2%
0%
5%
-1%
0%
1%
1%
2%
1%
4%
3%
2%
5%
5%
3%
2%
2%
3%
2%
2%
2%
3%
4%
2%
4%
2%
3%
3%
3%
278
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 214: ABR and Cross Subsidy trajectory for FY 2024-25
Category
HT I (A): HT - Industry
HT II: HT - Commercial
HT III: HT - Railways/Metro/Monorail Traction
HT IV: HT - Public Water Works (PWW)
HT V: HT - Agriculture Pumps
HT VI: HT - Group Housing Societies (Residential)
HT VIII: HT - Temporary Supply
HT IX : HT - Public Services Govt
HT IX : HT - Public Services Others
HT Total
LT I: LT - Residential
LT II: LT - Non-Residential
LT III: LT - Public Water Works (PWW)
LT IV: LT - Agriculture Metered
LT V (A): LT - Industry - Power Looms
LT V (B): LT - Industry – General
LT VI: LT - Street Light
LT VIII: LT - Advertisements and Hoardings
LT IX: LT - Crematorium and Burial Grounds
LT X- Public Services Govt.
LT X- Public Services Others
LT Total
MSEDCL
Ratio of Average Billing Rate
Average Billing Rate
Projected
to Projected Average Cost of
(Rs./kVAh) or (Rs/kWh)
% increase
Average
Supply (%)
/ decrease % increase
Cost of
in Cross- in tariff (%)
Proposed
Proposed
Proposed
Supply
Proposed Tariff subsidy
Tariff
for
FY
Tariff
for
FY
Tariff
for
(Rs/kWh)
for FY 2024-25
2023-24
2024-25
FY 2023-24
8.10
9.67
15.76
11.84
9.05
4.73
9.68
19.73
11.76
13.52
9.66
7.96
12.14
4.50
4.05
8.03
10.01
6.94
23.20
5.47
7.85
10.55
6.86
January 20
9.85
15.92
12.29
9.32
4.81
10.14
20.83
12.14
13.80
9.81
8.20
12.33
4.59
4.14
8.27
10.39
7.10
24.18
5.55
8.10
10.90
7.08
122%
200%
150%
115%
60%
123%
250%
149%
171%
122%
101%
154%
57%
51%
102%
127%
88%
294%
69%
99%
134%
87%
122%
197%
152%
115%
59%
125%
257%
150%
170%
121%
101%
152%
57%
51%
102%
128%
88%
299%
69%
100%
135%
87%
-1%
-3%
2%
1%
-1%
3%
7%
1%
-1%
-1%
0%
-1%
0%
0%
0%
2%
0%
5%
-1%
1%
1%
1%
2%
1%
4%
3%
2%
5%
6%
3%
2%
2%
3%
2%
2%
2%
3%
4%
2%
4%
1%
3%
3%
3%
279
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
12.5 Cross Subsidy Trajectory
12.5.1 MSEDCL submits that for certain categories such as HT Industrial, HT Commercial, HT Public Services etc., there is a reducing
trend in cross subsidy. Further, for LT Residential, LT Public Services etc. there is increasing trend in cross subsidy. However,
considering the recovery of proposed revenue gap, changes in tariff design and philosophy, there is a need to revise the tariff
for various categories. Accordingly, MSEDCL has proposed the tariffs to recover the proposed revenue gap.
MSEDCL
January 20
280
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 215: Cross Subsidy Trajectory for the Control Period
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25
Category
HT I (A): HT - Industry
HT II: HT - Commercial
HT III: HT - Railways/Metro/Monorail Traction
HT IV: HT - Public Water Works (PWW)
HT V: HT - Agriculture Pumps
HT VI: HT - Group Housing Societies
HT VIII: HT - Temporary Supply
HT IX : HT - Public Services Govt
HT IX : HT - Public Services Others
HT Total
LT I: LT - Residential
LT II: LT - Non-Residential
LT III: LT - Public Water Works (PWW)
LT IV: LT - Agriculture Metered
LT V (A): LT - Industry - Power Looms
LT V (B): LT - Industry – General
LT VI: LT - Street Light
LT VIII: LT - Advertisements and Hoardings
LT IX: LT - Crematorium and Burial Grounds
LT X- Public Services Govt.
LT X- Public Services Others
LT Total
MSEDCL
Projected
125%
211%
146%
113%
62%
116%
233%
148%
175%
126%
100%
158%
58%
51%
101%
122%
90%
282%
71%
98%
130%
85%
January 20
Projected
124%
207%
147%
114%
61%
118%
238%
148%
174%
124%
100%
157%
58%
51%
101%
123%
88%
285%
71%
99%
131%
86%
Projected
123%
203%
148%
114%
61%
120%
243%
148%
172%
123%
100%
155%
57%
51%
101%
125%
88%
289%
70%
99%
132%
86%
Projected
122%
200%
150%
115%
60%
123%
250%
149%
171%
122%
101%
154%
57%
51%
102%
127%
88%
294%
69%
99%
134%
87%
Projected
122%
197%
152%
115%
59%
125%
257%
150%
170%
121%
101%
152%
57%
51%
102%
128%
88%
299%
69%
100%
135%
87%
281
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
13 CROSS SUBSIDY SURCHARGE
13.1 Background
13.1.1 Section 2 (47) of the said Electricity Act defines “Open Access’, while Section
42 of the said Act inter – alia mandates the Distribution Licensee to provide
Open Access to eligible consumers, subject to payment of “Cross Subsidy
Surcharge”, “Additional Surcharge” & other applicable charges.
13.1.2 MSEDCL further submits that Section 42(2) of the Act provides for the levy of
Cross Subsidy Surcharge (CSS). The relevant provision of the Act is
reproduced below:“……. In determining the charges for wheeling, it shall have due regard to all
relevant factors including such cross-subsidies, and other operational
constraints;
Provided that such open access shall be allowed on payment of surcharge in
addition to the charges for wheeling as may be determined by the state
commission;
Provided further that such surcharge shall be utilised to meet the
requirements of the current level of cross-subsidy within the area of
distribution licensee….(emphasis added)”
13.1.3 Section 86 (1) (a) of the said Act inter – alia mandates the Hon’ble Commission
to determine “Cross Subsidy Surcharge”, “Additional Surcharge” & other
applicable charges payable by the consumers opting for Open Access.
13.1.4 MSEDCL submits that the National Electricity Policy as stipulated by the Central
Government provides that –
“Under sub – section (2) of Section 42 of the Act, a surcharge is to be levied by
the respective State Commissions on consumers switching to alternate
supplies under Open Access. This is to compensate the host distribution
licensee serving such consumers who are permitted Open Access under
Section 42 (2), for loss of Cross Subsidy element built into the tariff of such
consumers………”
MSEDCL
January 20
282
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
13.1.5 The Central Government notified the revised National Tariff Policy on 28th
January, 2016 and has revised the “Surcharge Formula” as follows:
S = T – [C/ (1 - L / 100) + D + R]
Where
S is the Surcharge
T is the tariff payable by the relevant category of consumers, including reflecting
the Renewable Purchase Obligation
C is the per unit weighted average cost of power purchase by the Licensee,
including meeting the Renewable Purchase Obligation
D is the aggregate of transmission, distribution and wheeling charge applicable
to the relevant voltage level
L is the aggregate of transmission, distribution and commercial losses,
expressed as a percentage applicable to the relevant voltage level
R is the per unit cost of carrying regulatory assets.
13.1.6 MSEDCL submits that as per the provision of Section 42 (2) of the Electricity
Act 2003, the cross-subsidy surcharge needs to be based on the current level
of cross subsidy. Accordingly, the consumers who opted for Open Access need
to be charged for the compensation of current level of cross subsidy which
prevailed during that period and in order to avoid the burden of the same getting
passed on other consumers who are with the Distribution Licensee.
13.2 Lower CSS approved
13.2.1 To examine the issues related to Open Access along with issues relating to
amendments in provisions relating to captive Generating plants in the Electricity
Rules, 2005, a committee was constituted by CEA on the advice of Ministry of
Power. In the Consultation paper by MoP issued on 24th August 2017, which
is based on the report of the said Committee, it has been proposed that the
SERCs should determine the CSS based on real cross subsidy. The said Paper
also advocated for implementation of Tariff Policy 2016 in true spirit. The
relevant extract of the said Consultation Paper is reproduced below:
The Tariff Policy 2016 mandates SERCs to determine roadmap for reduction of
cross subsidy and bring tariff at +/- 20% Average Cost of Supply, however it
MSEDCL
January 20
283
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
restricts Cross Subsidy Surcharge at 20% of the consumer tariff. In case the
consumer tariff is more than 120% of Average Cost of Supply, DISCOM will not
be able to recover losses through cross subsidy surcharge in case consumer
opts for open access. It is essential for SERCs to implement both Para 8.3 -2
and First proviso to para 8.5.1 of the Tariff Policy 2016 simultaneously. If one
of the provision could not be implemented due to some reason, the second
provision should also not be implanted to that extent.
13.2.2 While approving the CSS in Case No. 195 of 2017, Hon’ble Commission
worked out the various components of CSS formulae based on the approved
values for FY 18-19 and FY 19-20 and computed the consumer category-wise
CSS in accordance with the Tariff Policy, 2016. The CSS computed in
accordance with the NTP Formulae represents the current level of cross
subsidy. However, Hon’ble Commission has approved the CSS equal to
minimum of the two values: Computed CSS and 20% of tariff. This has resulted
in lower CSS applicable than current level of cross subsidy leading to
incomplete recovery of Cross Subsidy from Open Access consumers.
13.2.3 For example, the CSS calculated by Hon’ble Commission as per the NTP
formula for HT Industry (General) at EHV level for FY 18-19 was Rs 3.21 per
unit whereas the CSS approved for that category was Rs 1.58 per unit only.
Considering the EHV Open Access Quantum for FY 18-19, MSEDCL lost about
Rs. 670 Crs of legitimate revenue from HT Industrial category Open Access
consumers due to the lower level of approved CSS.
13.2.4 Such revenue deficit due to lower CSS approved is being passed on to the
consumers of the MSEDCL during true up exercise. This results in:a) Substantial delay in revenue realisation which comes only after true up
exercise; and
b) Further tariff increase of MSEDCL consumers at large, despite not being at
any fault.
13.2.5 In the process, OA consumers unduly get benefited due to less cross subsidy
surcharge. As Industrial consumers are subsidizing consumers, the more
impact gets loaded onto the Industrial category, raising its tariff further. Such
MSEDCL
January 20
284
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
increased Industrial tariff will lead to more consumers opting for Open Access
which will further add to revenue deficit, leading to requirement of further tariff
hike, entering into vicious cycle. Therefore, as a principle, only those
consumers who opt for Open Access during a particular period should pay the
CSS for such period to maintain the prevailing level of cross subsidy and should
not be loaded onto MSEDCL’s consumers at large.
13.2.6 One of the reasons for tariff hike for MSEDCL was incomplete recovery of CSS
as discussed above.
13.3 CSS as Compensatory Charge
13.3.1 MSEDCL submits that there can be no ambiguity with the proposition that CSS
is a compensatory charge to the Discom. This principle had been accepted
even by the Appellate Tribunal, in several judgments earlier. MSEDCL would
also like to add that, as has also been held by the Tribunal, CSS is not only to
compensate the Discom for the loss of cross subsidy, it is also to compensate
the remaining consumers of the Discom who have not taken open access. The
same has been up held in the APTEL in its Judgment dated 2nd December 2013
in Appeal No. 178 of 2011 (supra) which is reproduced below:" . .II The contention of the State Commission that Tariff Policy provide that the
CSS should not be so enormous to suffocate the Competition is misplaced. The
Act mandated the State Commission to determine the CSS to meet the
requirement of current level of cross subsidy. We have to keep in mind that
the CSS is paid by the subsidizing consumers only. This Tribunal in catena of
cases has held that CSS is compensatory in nature. It is meant for to
compensate the loss suffered by the remaining subsidized low-end consumers.
Thus, in the scenario of mass changeover of consumers, the CSS has also to
be such that exodus of subsidizing consumers does not load the remaining low
end consumers heavily. The State Commission has to balance the interest of
all the consumers, the plea taken by the State Commission in Appeal No.
132/2011 and accepted by this Tribunal in its judgment. The above submission
of the State Commission also suggests that it has attempted to suppress the
CSS artificially ..."(“Emphasis Added”)
MSEDCL
January 20
285
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
13.3.2 MSEDCL has determined the cross subsidy surcharge based on the Tariff
Policy formula without putting any ceiling.
13.3.3 In view of the submissions in foregoing paragraphs, MSEDCL requests Hon’ble
Commission to determine the Cross Subsidy Surcharge considering the
formula prescribed by the NTP 2016 without putting any ceiling.
13.4 Computation of Cross Subsidy Surcharge for the Control Period
13.4.1 Computation of ‘ C ‘
13.4.1.1
Computation of ‘C’ is based on the projected power purchase quantum
and price for the Control Period as submitted in the Form 2 of the Regulatory
Formats for the respective year. The definition/ explanation for ‘C’ has been
revised in the Tariff Policy dated 28th January, 2016 with inclusion of
renewable power purchase in the computation of ‘C’. The comparison of old
and new tariff policy is given below.
Old Tariff Policy
Weighted average cost of power
purchase of top 5% at the margin
excluding liquid fuel based generation
and renewable power.
Revised Tariff Policy
Per unit weighted average cost of power
purchase by the licensee, including
meeting the renewable purchase
obligation.
13.4.1.2
Therefore, computation of ‘C’ can be taken as the total power purchase
cost based on MOD principle to the total power scheduled to be purchased as
per MOD principle. Therefore, the ‘C’ computed for MSEDCL for Control
Period are shown in the following table.
Table 216: Computation of C for the Control Period
Financial
Details of Power Purchase
Year
MUs
Rs. Crs* Rs./kWh
2020-21
1,36,888
57,558
4.20
2021-22
1,41,651
60,035
4.24
2022-23
1,46,645
63,403
4.32
2023-24
1,51,950
66,662
4.39
2024-25
1,57,573
69,350
4.40
* - Power Purchase Cost is excluding the PGCIL
transmission Charges
MSEDCL
January 20
286
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
13.4.2 Computation of System loss ‘L’
13.4.2.1
The projected wheeling losses at the respective voltage level and the
transmission losses are used to arrive at the grossed up total system losses
for MSEDCL which is shown in the following table.
Table 217: Computation of System Loss for the Control Period
Particulars
Transmission Losses (%)
Wheeling Losses (%)
Total System Losses (%)
EHV
3.30%
0.00%
3.30%
HT
LT Level
3.30%
3.30%
7.50% 12.00%
10.55% 14.90%
13.4.3 Computation of wheeling charge ‘D’
13.4.3.1
The projected wheeling charges as shown in the Chapter 11 at the
respective voltage levels for MSEDCL along with per unit transmission
charges (including PGCIL Charges and Intra-State) are used for the
parameter “D’ in the computation of cross subsidy surcharge for the Control
Period. The same wheeling charges at respective voltage levels are shown in
the following table along with system losses.
MSEDCL
January 20
287
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 218: Computation of Wheeling Charge D for the Control Period
Wheeling Charges and Transmisison Charges
Wheeling Charges (Rs./Unit*)
Particulars
EHV
HT
LT Level
2020-21
0.77
1.15
2021-22
0.78
1.17
2022-23
0.78
1.17
2023-24
0.77
1.14
2024-25
0.75
1.11
Transmission Charges (Rs./Unit*)
Particulars
EHV
HT
LT Level
2020-21
1.22
1.22
1.22
2021-22
0.86
0.86
0.86
2022-23
0.87
0.87
0.87
2023-24
0.90
0.90
0.90
2024-25
0.93
0.93
0.93
Wheeling and Transmission Charges (Rs./Unit*)
Particulars
EHV
HT
LT Level
2020-21
1.22
1.99
2.37
2021-22
0.86
1.64
2.03
2022-23
0.87
1.66
2.04
2023-24
0.90
1.67
2.04
2024-25
0.93
1.68
2.05
13.4.4 Computation of Average Billing Rate “T”
13.4.4.1
ABR of MSEDCL has been taken as the effective average billing rate as
per the proposed tariff for the Control Period
13.4.5 Determination of Cross subsidy surcharge “S”
13.4.5.1
The category wise CSS applicable to open access consumers arrived
on consideration of the components ABR, C, L & D from the above referred
respective sections is provided in the tables below:-
MSEDCL
January 20
288
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 219: Detailed computation of CSS for FY 2020-21 for HT Consumers
Consumer Category
T
C
(ABR)
Rs./Unit*
HT I HT - Industry
HT
9.25
EHV
8.40
HT I (B): HT - Industry (Seasonal)
HT
12.18
EHV
13.93
HT II: HT – Commercial
HT
15.26
EHV
16.47
HT III : HT - Railways/Metro/Monorail Traction
HT
10.71
EHV
9.55
HT IV: HT - Public Water Works
HT
8.29
EHV
6.95
HT V(B): HT - Agriculture - Others
HT
6.57
EHV
HT VI: HT - Group Housing Societies (Residential)
HT
8.77
EHV
6.00
HT VIII(B): HT - Temporary Supply Others (TSO)
HT
17.38
EHV
HT IX: HT - Public Services
HT IX(A): HT - Public Services-Govt. Edu. Institutions and Hospitals
HT
10.73
EHV
HT IX(B): HT - Public Services-Others
HT
12.96
EHV
10.81
MSEDCL
WL
TL
L
%
%
%
D = WL +
CSS
Tx
Computed
Rs./Unit*
4.20
4.20
7.50%
0.00%
3.30%
3.30%
10.55%
3.30%
1.99
1.22
2.57
2.83
4.20
4.20
7.50%
0.00%
3.30%
3.30%
10.55%
3.30%
1.99
1.22
5.49
8.36
4.20
4.20
7.50%
0.00%
3.30%
3.30%
10.55%
3.30%
1.99
1.22
8.57
10.90
4.20
4.20
7.50%
0.00%
3.30%
3.30%
10.55%
3.30%
1.99
1.22
4.03
3.98
4.20
4.20
7.50%
0.00%
3.30%
3.30%
10.55%
3.30%
1.99
1.22
1.61
1.38
4.20
4.20
7.50%
0.00%
3.30%
3.30%
10.55%
3.30%
1.99
1.22
4.20
4.20
7.50%
0.00%
3.30%
3.30%
10.55%
3.30%
1.99
1.22
2.09
0.43
4.20
4.20
7.50%
0.00%
3.30%
3.30%
10.55%
3.30%
1.99
1.22
10.69
-
4.20
4.20
7.50%
0.00%
3.30%
3.30%
10.55%
3.30%
1.99
1.22
4.04
-
4.20
4.20
7.50%
0.00%
3.30%
3.30%
10.55%
3.30%
1.99
1.22
6.27
5.24
January 20
-
289
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 220: Detailed computation of CSS for FY 2020-21 for LT Consumers (1/2)
Consumer Category
LT Residential
LT I(A): LT - Residential-BPL
LT I(B): LT - Residential
1-100 units
101-300 units
301-500 units
Above 500 units
LT II: LT - Non-Residential
(A) 0 – 20 kVA
(B): >20 kVA and ≤ 50 kVA
(C): >50 kVA
LT IV(C): LT - Agriculture M etered – Others
MSEDCL
T
C
(ABR)
Rs./Unit*
WL
TL
L
%
%
%
D = WL +
CSS
Tx
Computed
Rs./Unit*
2.18
4.20
12.00%
3.30%
14.90%
2.37
5.61
9.68
12.32
13.15
4.20
4.20
4.20
4.20
12.00%
12.00%
12.00%
12.00%
3.30%
3.30%
3.30%
3.30%
14.90%
14.90%
14.90%
14.90%
2.37
2.37
2.37
2.37
2.37
5.01
5.85
10.55
13.39
15.35
7.95
4.20
4.20
4.20
4.20
12.00%
12.00%
12.00%
12.00%
3.30%
3.30%
3.30%
3.30%
14.90%
14.90%
14.90%
14.90%
2.37
2.37
2.37
2.37
3.24
6.08
8.04
0.65
January 20
-
290
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 221: Detailed computation of CSS for FY 2020-21 for LT Consumers (2/2)
Consumer Category
LT V (A): LT - Industry - Powerlooms
(i): 0-20 kVA
(ii): Above 20 kVA
LT V(B): LT - Industry - General
(i): 0-20 kVA
(ii): Above 20 kVA
LT VI: LT - Street Light
(B): Municipal corporation Area
LT VII: LT - Temporary Connection
(A): LT - Temporary Supply Religious (TSR)
(B): LT - Temporary Supply Others (TSO)
LT VIII: LT - Advertisements and Hoardings
LT X (A) - Public Services – Govt.
(i): ≤ 20 kVA
(ii): >20 - ≤ 50 kVA
(iii): >50 kVA
LT X(B) - Public Services - Others
(i): ≤ 20 kVA
(ii): >20 - ≤ 50 kVA
(iii): >50 kVA
LT XI – Electric Vehicle Charging Station
MSEDCL
T
C
(ABR)
Rs./Unit*
WL
TL
L
%
%
%
D = WL +
CSS
Tx
Computed
Rs./Unit*
6.50
7.87
4.20
4.20
12.00%
12.00%
3.30%
3.30%
14.90%
14.90%
2.37
2.37
0.56
7.92
9.22
4.20
4.20
12.00%
12.00%
3.30%
3.30%
14.90%
14.90%
2.37
2.37
0.61
1.92
7.76
4.20
12.00%
3.30%
14.90%
2.37
0.45
8.06
16.32
20.39
4.20
4.20
4.20
12.00%
12.00%
12.00%
3.30%
3.30%
3.30%
14.90%
14.90%
14.90%
2.37
2.37
2.37
0.75
9.01
13.08
6.09
8.72
9.80
4.20
4.20
4.20
12.00%
12.00%
12.00%
3.30%
3.30%
3.30%
14.90%
14.90%
14.90%
2.37
2.37
2.37
1.41
2.50
8.33
10.65
10.85
6.35
4.20
4.20
4.20
4.20
12.00%
12.00%
12.00%
12.00%
3.30%
3.30%
3.30%
3.30%
14.90%
14.90%
14.90%
14.90%
2.37
2.37
2.37
2.37
1.02
3.34
3.54
-
January 20
291
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 222: Summary of CSS for the Control Period for HT Consumers
Consumer Category
FY 2020-21
Rs/Unit
FY 2021-22
Rs/Unit
FY 2022-23
Rs/Unit
FY 2023-24
Rs/Unit
FY 2024-25
Rs/Unit
2.57
2.83
3.09
3.35
3.19
3.45
3.31
3.57
3.46
3.71
5.49
8.36
6.06
9.02
6.20
9.25
6.35
9.50
6.57
9.81
8.57
10.90
9.05
11.49
9.10
11.66
9.17
11.85
9.30
12.11
4.03
3.98
4.77
4.64
5.09
4.87
5.44
5.12
5.87
5.42
1.61
1.38
2.21
1.92
2.38
2.03
2.56
2.15
2.81
2.32
0.41
-
0.52
-
0.62
-
0.78
-
2.09
0.43
2.84
0.96
3.19
1.06
3.57
1.16
4.03
1.32
10.69
-
11.95
-
12.83
-
13.80
-
14.92
-
4.04
-
4.69
-
4.92
-
5.18
-
5.54
-
6.27
5.24
6.86
5.75
7.04
5.84
7.23
5.93
7.49
6.09
1.99
-
2.71
-
3.03
-
3.36
-
3.78
-
HT I HT - Industry
HT
EHV
HT I (B): HT - Industry (Seasonal)
HT
EHV
HT II: HT – Commercial
HT
EHV
HT III : HT - Railways/Metro/Monorail Traction
HT
EHV
HT IV: HT - Public Water Works
HT
EHV
HT V(B): HT - Agriculture - Others
HT
EHV
HT VI: HT - Group Housing Societies (Residential)
HT
EHV
HT VIII(B): HT - Temporary Supply Others (TSO)
HT
EHV
HT IX: HT - Public Services
HT IX(A): HT - Public Services-Govt. Edu. Institutions and Hospitals
HT
EHV
HT IX(B): HT - Public Services-Others
HT
EHV
HT X: HT – Electric Vehicle Charging Station
HT
EHV
MSEDCL
January 20
-
292
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 223: Summary of CSS for the Control Period for LT Consumers (1/2)
Consumer Category
LT Residential
LT I(A): LT - Residential-BPL
LT I(B): LT - Residential
1-100 units
101-300 units
301-500 units
Above 500 units
LT II: LT - Non-Residential
(A) ≤ 20 kVA
(B): >20 kVA and ≤ 50 kVA
(C): >50 kVA
LT III: LT - Public Water Works (PWW)
(A): ≤ 20 kVA
(B): > 20 kVA and ≤ 40 kVA
(C): > 40 kVA
LT IV(C): LT - Agriculture Metered – Others
MSEDCL
FY 2020-21
Rs/Unit
-
FY 2021-22
Rs/Unit
-
FY 2022-23
Rs/Unit
-
FY 2023-24
Rs/Unit
-
FY 2024-25
Rs/Unit
-
2.37
5.01
5.85
2.99
5.45
6.25
3.18
5.45
6.23
3.39
5.49
6.33
3.66
5.58
6.51
3.24
6.08
8.04
3.78
6.76
8.54
3.88
7.00
8.61
3.98
7.24
8.58
4.14
7.55
8.61
0.65
1.23
1.48
1.77
0.14
2.11
January 20
293
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 224: Summary of CSS for the Control Period for LT Consumers (2/2)
Consumer Category
LT V (A): LT - Industry - Powerlooms
(i): 0-20 kVA
(ii): Above 20 kVA
LT V(B): LT - Industry - General
(i): 0-20 kVA
(ii): Above 20 kVA
LT VI: LT - Street Light
(A): Grampanchayat; A B & C Class Municipal Council
(B): Municipal corporation Area
LT VII: LT - Temporary Connection
(A): LT - Temporary Supply Religious (TSR)
(B): LT - Temporary Supply Others (TSO)
LT VIII: LT - Advertisements and Hoardings
LT IX: LT - Crematorium and Burial Grounds
LT X (A) - Public Services – Govt.
(i): ≤ 20 kVA
(ii): >20 - ≤ 50 kVA
iii): >50 kVA
LT X(B) - Public Services - Others
(i): ≤ 20 kVA
(ii): >20 - ≤ 50 kVA
(iii): >50 kVA
LT XI – Electric Vehicle Charging Station
MSEDCL
FY 2020-21
Rs/Unit
FY 2021-22
Rs/Unit
FY 2022-23
Rs/Unit
FY 2023-24
Rs/Unit
FY 2024-25
Rs/Unit
0.56
1.02
1.14
0.12
1.28
0.39
1.48
0.61
1.92
1.27
2.66
1.50
2.97
1.72
3.30
2.02
3.69
0.45
1.01
1.14
1.29
1.49
0.75
9.01
13.08
-
1.73
10.04
14.31
-
2.35
10.68
15.13
-
3.08
11.39
16.00
-
3.98
12.22
16.96
-
1.41
2.50
2.00
3.06
2.15
3.20
2.31
3.34
2.63
3.54
1.02
3.34
3.54
-
1.66
4.11
4.23
-
1.88
4.46
4.48
-
2.10
4.81
4.74
-
2.39
5.22
5.06
-
January 20
294
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
13.4.6 As stipulated in the Open Access Regulations, the cross-subsidy surcharge
shall be based on the current level of cross subsidy of the tariff category / tariff
slab and/ or voltage level to which such consumer or person belong or are
connected to. Accordingly, the consumers who opt for Open Access during the
Control Period need to be charged to compensate the level of cross subsidy
which will prevail during the control period and to avoid the burden of the same
on other consumers. Therefore, MSEDCL requests the Hon’ble Commission to
approve the CSS for the Control Period as computed above.
MSEDCL
January 20
295
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
14 ADDITIONAL SURCHARGE
14.1 Background
14.1.1 Section 42 (4) of the Electricity Act 2003, provides that
Where the State Commission permits a consumer or class of consumers to
receive supply of electricity from a person other than the distribution licensee
of his area of supply, such consumer shall be liable to pay an additional
surcharge on the charges of wheeling, as may be specified by the State
Commission, to meet the fixed cost of such distribution licensee arising out of
his obligation to supply
14.1.2 Regulation 14.8 of the Commission’s Distribution OA Regulations, 2016
outlines the principles for determination and levy of Additional Surcharge as
below:
“14.8 Additional Surcharge
a) An Open Access consumer receiving supply of electricity from a person other
than the distribution licensee of his area of supply shall pay to the Distribution
Licensee an Additional Surcharge on the charges of wheeling and Cross
Subsidy Surcharge to meet the fixed cost of such distribution licensee arising
out of its obligation to supply, as provided in sub-section (4) of Section 42 of the
Act.
b) This additional surcharge shall become applicable only when due to the Open
Access being granted or having been granted, the obligation of the Distribution
Licensee in terms of power purchase commitments has been and continues to
be stranded, or there is an unavoidable obligation and incidence to bear fixed
costs consequent to such a commitment.
c) The Distribution Licensee shall submit to the Commission with its petition under
the Commission’s Regulations governing a Multi-year tariff, detailed
computations of fixed cost which it is incurring towards his obligation to supply,
and actual expenses incurred vis-à-vis those approved by the Commission.
d) The Commission shall determine category wise additional surcharge to be
recovered by Distribution Licensee from Open Access consumers, based on
the following principles:
i)
The cost must have been incurred by or be expected, with reasonable
certainty, to be incurred by Distribution Licensee on account of such consumer;
and
MSEDCL
January 20
296
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
ii)
The cost has not been or cannot be recovered from such consumer, or
from other consumers who have been given supply from the same assets or
facilities, through wheeling charges, standby charges or other charges
approved by the Commission
Provided that such additional surcharge shall be applicable to all the
consumers who have availed Open Access to receive supply from a source
other than the Distribution Licensee to which they are connected.
e)
………………..
f)
………………..”
14.2 Backing down due to surplus power scenario
14.2.1 It is submitted that the Section 43 of the Electricity Act 2003 casts Universal
Service Obligation (USO) on MSEDCL. Accordingly, in order to cater the
consumer demand, MSEDCL purchases power on long term basis from
Mahagenco, NTPC under MOU route and from IPPs through competitive
bidding process. The tariff for generation as per PPA/MoU comprises of two
parts viz. Fixed Charge which is dependent on declared availability of generator
and variable charge which is dependent on actual energy supplied.
14.2.2 MSEDCL submits that capacity addition was done by signing the PPAs with
generating companies after due approval of Hon’ble Commission and based on
estimated demand as per the projections published in 16th Electric Power
Survey (EPS) published by CEA. However, there is a variation in projected and
actual demand due to various reasons such as increase in Open Access, RE
capacity addition to fulfil RPO Target, RE capacity addition by CPP because of
low tariff and Net Metering etc. This is resulting into surplus power availability.
14.2.3 Further, MSEDCL submits that to fulfill the RPO targets set by Hon’ble
Commission, MSEDCL has to plan prospective power purchase from
renewable energy sources. Also, as per the RPO Regulations 2019 notified on
27th December 2019, MSEDCL is required to procure at least 25% of power
from Renewable Sources by FY 2024-25 which includes 13.5% of Solar and
11.5% of Non-Solar power. Keeping up pace with the RPO requirement,
MSEDCL has tied up total 10,795 MW capacity of Renewable Energy as on
MSEDCL
January 20
297
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
31st October 2019 of which 7,654 MW capacity is commissioned. This includes
Wind Generation of 3,999 MW, Solar of 4017 MW, Bagasse based
cogeneration of 2,406 MW, Biomass capacity of 236 MW, Small Hydro of 121
MW & Municipal solid waste of 16 MW capacity. Further, by the end of FY 202425 to meet the RPO target, MSEDCL has planned to increase the solar capacity
to 12,500 MW. Due to such addition of renewable power, the surplus power is
expected to be continued further since the renewable energy is treated as “Must
Run”.
14.2.4 MSEDCL also submits that due to the recent trends in the prices of solar energy
and MERC Net Metering Regulations 2019, various consumers are now
converting to captive power plants (CPP) by installing solar projects through
Developers. Due to this, the surplus power is also likely to increase further.
14.2.5 To manage the surplus power, MSEDCL gives zero schedule/ backdown the
high variable cost thermal generation as per Merit Order Despatch or sell in
energy market depending upon market rates thereby reducing the burden of
energy charges. However whenever such surplus capacity remains available,
MSEDCL has to pay fixed/capacity charges irrespective of the scheduling or
non-scheduling of power from the units which declares its availability.
14.2.6 Further, whenever there is unavailability of generation due to the forced
outage/coal shortage, there is requirement of additional power during certain
blocks of the day, sometimes the duration of shortfall during the day is so small
that to cater the demand for such small period, it is unviable to take a generation
unit on bar to cater the demand for small period. In such cases, MSEDCL
forecast the demand, availability and shortfall on day-ahead basis and procures
power from Short Tern Markets such as Energy Exchanges.
14.2.7 Furthermore considering the historical trend of demand, coal shortage
scenario, trend of rates in Exchanges, etc. MSEDCL in advance plans and
procures the power on short term through bilateral transactions on DEEP
Portal.
14.2.8 In addition to this, MSEDCL also explores the option of optimization of power
MSEDCL
January 20
298
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
purchase cost by backing down of costly generation unit as per MoD and
procuring the cheaper power available in Short Term Market/Exchange.
14.2.9 It is further submitted that MSEDCL has to pay Fixed Charges to the Generators
as per the terms and conditions of the PPAs irrespective of utilization of
generation capacity and thus the surplus capacity adds the fixed cost burden
on MSEDCL.
14.2.10
The year wise details of net surplus capacity, back-down quantum,
capacity under outages due to the coal shortage and power purchase through
short term tender and IEX is given in following tables.
Units under
RSD,ESD &
BD ( MUs)
Capacity
under coal
shortage
(MUs)
Total
Surplus
(MUs)
Total Short
Term
Purchase
(MUs)
A
B
C=A+B
D
Total MUs
18349
11443
29792
4029
Avg. MW on RTC
basis
2095
1306
3401
460
FY 18-19
Units
under
RSD,ESD &
BD ( MUs)
Capacity
under coal
shortage
(MUs)
Total Surplus
(MUs)
Total Short
Term
Purchase
(MUs)
A
B
C=A+B
D
Total MUs
20883
15599
36482
5821
Avg. MW on RTC
basis
2384
1781
4165
665
Units under
RSD,ESD &
BD ( MUs)
Capacity
under coal
shortage
(MUs)
Total
Surplus
(MUs)
Total Short
Term
Purchase
(MUs)
A
B
C=A+B
D
Total Mus
22796
932
23727
763
Avg. MW on RTC
basis
3893
159
4052
130
FY 17-18
FY 19-20 (Nov-19)
MSEDCL
January 20
299
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
14.2.11
From above, it is clear that MSEDCL is in power surplus and will continue
to be in surplus for Control Period. However, short term power is purchased for
cost optimization or to meet demand during coal shortage scenario and hence,
additional surcharge is justifiable & needs to be made applicable to all OA
consumers.
14.3 Surcharge Computation
14.3.1 MSEDCL has implemented Intra State ABT in the state of Maharashtra since
1st August 2011 and SLDC / DISCOM are granting approvals / consent to open
access consumers for purchase and sale of power through open access as per
Open Access Regulations. Accordingly, open access consumers are now
buying considerable quantum of power under open access and on the other
hand MSEDCL has tied up sufficient quantum of power after approval of the
Commission, so as to meet the expected demand by considering the overall
growth in the State.
14.3.2 As a result, the generation capacity tied up by MSEDCL becomes excess. In
this situation, MSEDCL needs to back down the generation and also has to pay
Fixed Charges (or Capacity Charges) to the Generators as per the terms and
conditions of the PPAs irrespective of utilization of generation capacity. The
burden of fixed cost is affecting the viability and sustainability of operations of
MSEDCL, which ultimately adversely affects the tariff of MSEDCL’s common
consumers. Hence, to mitigate this, it was appropriate to determine the
Additional Surcharge for OA consumers, as per Section 42 (4) of the EA, 2003.
Hon’ble Commission in its Order dated 3rd November 2016 (Case No. 48/2016)
had observed that there was a case for recovery of the part of fixed cost towards
the stranded capacity arising from the power purchase obligation through levy
of Additional Surcharge from OA consumers. Accordingly, Hon’ble Commission
has determined the additional surcharge in the said MYT Order dated 3rd
November 2016 and subsequently in MTR Order dated 12th September 2018.
14.3.3 In line with the methodology adopted by Hon’ble Commission in the MYT Order
dated 3rd November 2016 and MTR Order dated 12th September 2018,
MSEDCL computed the Additional Surcharge for the Control Period i.e. FY
MSEDCL
January 20
300
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
2020-21 to FY 2024-25 as per DOA Regulations, 2016 based on the data for
the FY 2018-19
Table 225: Proposed Additional Surcharge for FY 2020-21
Particulars
Reference
Step-1: Establishing contribution of OA to backing-down/stranded capacity
OA volume for FY 2019-20 (Upto Sept-19)
(a)
Backing Down quantum for FY 2019-20 (Upto Sept-19)
(b)
Ratio to OA to Backed down for FY 2019-20 (Upto Sept-19)
(c )=(b)/(a)
Unit
Value
MU
MU
%
2,178
14,704
15%
Step-2: Ascertaining Cost of Stranded Capacity
Fixed Cost of Thermal Generating Sources for FY 2020-21
Total Available MU from Thermal Generating Stations for FY 2020-21
Wt. Avg. Per Unit FC of Thermal Generating Stations for FY 2020-21
Total Projected Backdown/RSD Volume for FY 2020-21
Projected Open Access Volume for year for FY 2020-21
Fixed Cost pertaining to Backdown/RSD capacity for FY 2020-21
(d)
(e )
(f)=(d)/(e ) x10
(g)
(h)
(i)=(f)*(h)/10
Rs. Crs
MUs
Rs/kWh
MUs
MUs
Rs. Crs
19,207
1,43,926
1.33
32,653
4,843
646
Step-3: Determination of Additional Surcharge
Per Unit Additional Surcharge (to be applicable on OA Consumers )
j=(i)/(h)*10
Rs/Unit
1.33
Table 226: Proposed Additional Surcharge for FY 2021-22
Particulars
Reference
Step-1: Establishing contribution of OA to backing-down/stranded capacity
OA volume for FY 2019-20 (Upto Sept-19)
(a)
Backing Down quantum for FY 2019-20 (Upto Sept-19)
(b)
Ratio to OA to Backed down for FY 2019-20 (Upto Sept-19)
(c )=(b)/(a)
Unit
Value
MU
MU
%
2,178
14,704
15%
Step-2: Ascertaining Cost of Stranded Capacity
Fixed Cost of Thermal Generating Sources for FY 2021-22
Total Available MU from Thermal Generating Stations for FY 2021-22
Wt. Avg. Per Unit FC of Thermal Generating Stations for FY 2021-22
Total Projected Backdown/RSD Volume for FY 2021-22
Projected Open Access Volume for year for FY 2021-22
Fixed Cost pertaining to Backdown/RSD capacity for FY 2021-22
(d)
(e )
(f)=(d)/(e ) x10
(g)
(h)
(i)=(f)*(h)/10
Rs. Crs
MUs
Rs/kWh
MUs
MUs
Rs. Crs
19,698
1,44,100
1.37
31,957
4,843
662
Step-3: Determination of Additional Surcharge
Per Unit Additional Surcharge (to be applicable on OA Consumers )
j=(i)/(h)*10
Rs/Unit
1.37
MSEDCL
January 20
301
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 227: Proposed Additional Surcharge for FY 2022-23
Particulars
Reference
Step-1: Establishing contribution of OA to backing-down/stranded capacity
OA volume for FY 2019-20 (Upto Sept-19)
(a)
Backing Down quantum for FY 2019-20 (Upto Sept-19)
(b)
Ratio to OA to Backed down for FY 2019-20 (Upto Sept-19)
(c )=(b)/(a)
Unit
Value
MU
MU
%
2,178
14,704
15%
Step-2: Ascertaining Cost of Stranded Capacity
Fixed Cost of Thermal Generating Sources for FY 2022-23
Total Available MU from Thermal Generating Stations for FY 2022-23
Wt. Avg. Per Unit FC of Thermal Generating Stations for FY 2022-23
Total Projected Backdown/RSD Volume for FY 2022-23
Projected Open Access Volume for year for FY 2022-23
Fixed Cost pertaining to Backdown/RSD capacity for FY 2022-23
(d)
(e )
(f)=(d)/(e ) x10
(g)
(h)
(i)=(f)*(h)/10
Rs. Crs
MUs
Rs/kWh
MUs
MUs
Rs. Crs
20,038
1,42,875
1.40
31,725
4,843
679
Step-3: Determination of Additional Surcharge
Per Unit Additional Surcharge (to be applicable on OA Consumers )
j=(i)/(h)*10
Rs/Unit
1.40
Table 228: Proposed Additional Surcharge for FY 2023-24
Particulars
Reference
Step-1: Establishing contribution of OA to backing-down/stranded capacity
OA volume for FY 2019-20 (Upto Sept-19)
(a)
Backing Down quantum for FY 2019-20 (Upto Sept-19)
(b)
Ratio to OA to Backed down for FY 2019-20 (Upto Sept-19)
(c )=(b)/(a)
Unit
Value
MU
MU
%
2,178
14,704
15%
Step-2: Ascertaining Cost of Stranded Capacity
Fixed Cost of Thermal Generating Sources for FY 2023-24
Total Available MU from Thermal Generating Stations for FY 2023-24
Wt. Avg. Per Unit FC of Thermal Generating Stations for FY 2023-24
Total Projected Backdown/RSD Volume for FY 2023-24
Projected Open Access Volume for year for FY 2023-24
Fixed Cost pertaining to Backdown/RSD capacity for FY 2023-24
(d)
(e )
(f)=(d)/(e ) x10
(g)
(h)
(i)=(f)*(h)/10
Rs. Crs
MUs
Rs/kWh
MUs
MUs
Rs. Crs
20,487
1,43,181
1.43
30,469
4,843
693
Step-3: Determination of Additional Surcharge
Per Unit Additional Surcharge (to be applicable on OA Consumers )
j=(i)/(h)*10
Rs/Unit
1.43
MSEDCL
January 20
302
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Table 229: Proposed Additional Surcharge for FY 2024-25
Particulars
Reference
Step-1: Establishing contribution of OA to backing-down/stranded capacity
OA volume for FY 2019-20 (Upto Sept-19)
(a)
Backing Down quantum for FY 2019-20 (Upto Sept-19)
(b)
Ratio to OA to Backed down for FY 2019-20 (Upto Sept-19)
(c )=(b)/(a)
Unit
Value
MU
MU
%
Step-2: Ascertaining Cost of Stranded Capacity
Fixed Cost of Thermal Generating Sources for FY 2024-25
Total Available MU from Thermal Generating Stations for FY 2024-25
Wt. Avg. Per Unit FC of Thermal Generating Stations for FY 2024-25
Total Projected Backdown/RSD Volume for FY 2024-25
Projected Open Access Volume for year for FY 2024-25
Fixed Cost pertaining to Backdown/RSD capacity for FY 2024-25
(d)
(e )
(f)=(d)/(e ) x10
(g)
(h)
(i)=(f)*(h)/10
Rs. Crs
MUs
Rs/kWh
MUs
MUs
Rs. Crs
Step-3: Determination of Additional Surcharge
Per Unit Additional Surcharge (to be applicable on OA Consumers )
j=(i)/(h)*10
Rs/Unit
2,178
14,704
15%
20,276
1,42,854
1.42
27,218
4,843
687
1.42
Summary of the Additional Surcharge:
Particulars
Proposed Additional
Surcharge (Rs/kVAh)
FY 2020-21
1.33
FY 2021-22
1.37
FY 2022-23 FY 2023-24 FY 2024-25
1.40
1.43
1.42
14.3.4 In view of the submissions in the above paragraphs MSEDCL requests the
Hon’ble Commission to approve the Additional Surcharge for Open Access
Consumers irrespective of Source i.e. Captive Power Plants, IPP, RE based
power plants etc. in addition to the conventional open access consumers as
computed in the above tables.
14.3.5 MSEDCL further submits that CPPs existing prior to FY15-16, originally set up
the plant for self-consumption and still continuing the same arrangement of
captive use, shall be exempted from applicability of additional surcharge. This
is due to the fact that these were set up during the power shortage situation
and were captive in real sense as per the spirit of the Act.
MSEDCL
January 20
303
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
15 PROPOSED TARIFF APPLICABILITY
15.1 Background
15.1.1 Every consumer of electricity has a unique applicability of tariff, depending upon
the nature of power supply, purpose of power supply etc. which determines the
class of consumer or category of the consumer.
15.1.2 The Hon’ble Commission has accordingly classified the consumers of electricity
into various categories depending upon the nature of power supply i.e. (Low
Tension or High Tension), purpose of power supply i.e. (Domestic, Nondomestic, Industrial, Agricultural, etc.)
15.1.3 In the recent past, it is observed that classification of a consumer into a
particular category has resulted in litigation since applicability of a particular
category of tariff is not available in exhaustive nature.
15.1.4 A comparison of the existing applicability as per the MTR Order dated 12 th
September 2018 and proposed applicability of tariff for different categories of
consumer is given in the following table.
15.1.5 It is submitted that it is very difficult to cover all the existing activities. However,
this exercise of MSEDCL has attempted to cover majority of activities. The
applicability given in this Petition is indicative and may not cover some of the
activities. Such cases will be dealt by the respective field officer/ concerned
authority of MSEDCL for the purpose of categorization based on nature of
usages.
MSEDCL
January 20
304
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
15.2 LT Category
Sr.
No.
1.
Existing Applicability
Proposed Applicability
LT I A: LT – Residential (BPL)
LT I A: LT – Residential (BPL)
Applicability:
This Below Poverty Line (BPL) tariff category is applicable
to Residential consumers who have a Sanctioned Load upto
0.25 kW and who have consumed upto 360 units per annum
in the previous financial year. The eligibility of such
consumers will be reassessed at the end of each financial
year. If more than 360 units have been consumed in the
previous financial year, the LTI (B) - Residential tariff shall
thereafter be applicable, and such consumer cannot revert
thereafter to the BPL category irrespective of his future
consumption level.
Applicability:
This Below Poverty Line (BPL) tariff category is applicable
to Residential consumers who have a Sanctioned Load upto
0.25 kW and who have consumed upto 360 units per annum
in the previous financial year. The eligibility of such
consumers will be reassessed at the end of each financial
year. If more than 360 units have been consumed in the
previous financial year, the LTI (B) - Residential tariff shall
thereafter be applicable, and such consumer cannot revert
thereafter to the BPL category irrespective of his future
consumption level.
The categorization of BPL consumers will be reassessed at
the end of the financial year on a pro rata basis if there has
been consumption for only a part of the year The
categorization of BPL consumers who have been added
The categorization of BPL consumers will be reassessed at
the end of the financial year on a pro rata basis if there has
been consumption for only a part of the year The
categorization of BPL consumers who have been added
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during the previous year would be assessed on a pro rata during the previous year would be assessed on a pro rata
basis, i.e., 30 units per month.
basis, i.e., 30 units per month.
This BPL category will also be applicable to all new
consumers subsequently added in any month with a
Sanctioned Load of upto 0.25 kW and consumption
between 1 to 30 units (on pro rata basis of 1 unit/day) in the
first billing month.
This BPL category will also be applicable to all new
consumers subsequently added in any month with a
Sanctioned Load of upto 0.25 kW and consumption
between 1 to 30 units (on pro rata basis of 1 unit/day) in the
first billing month.
The BPL tariff is applicable only to individuals and not to The BPL tariff is applicable only to individuals and not to
institutions.
institutions.
2.
LT I B: LT – Residential
LT I B: LT – Residential
Applicability:
This tariff category is applicable for electricity used at
Low/Medium Voltage for operating various appliances used
for purposes such as lighting, heating, cooling, cooking,
washing/cleaning, entertainment/leisure, water pumping in
the following premises:
a) Private residential premises, Government/semiGovernment residential quarters;
Applicability:
This tariff category is applicable for electricity used at
Low/Medium Voltage for operating various appliances used
for purposes such as lighting, heating, cooling, cooking,
washing/cleaning, entertainment/leisure, water pumping in
the following premises:
a) Private residential premises, Government/semiGovernment residential quarters;
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b)
c)
d)
e)
f)
Proposed Applicability
Premises used exclusively for worship, such as
temples, gurudwaras, churches, mosques, etc.;
provided that halls, gardens or any other part of such
premises that may be let out for a consideration or used
for commercial activities would be charged at the
applicable LT-II tariff;
All Students Hostels affiliated to Educational
Institutions;
All other Students’ or Working Men/Women’s Hostels;
Other types of Homes/Hostels, such as (i)
Homes/Hostels for Destitutes, Disabled Persons
(physically or mentally handicapped persons, etc.) and
mentally ill persons (ii) Remand Homes (iii)
Dharamshalas, (iv) Rescue Homes, (v) Orphanages subject to verification and confirmation by the
Distribution Licensee;
Government / Private / Co-operative Housing
Colonies/complexes (where electricity is used
exclusively for domestic purposes) only for common
facilities such as Water Pumping / Street and other
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b) Premises used exclusively for worship, such as temples,
gurudwaras, churches, mosques, etc.; provided that
halls, gardens or any other part of such premises that
may be let out for a consideration or used for commercial
activities would be charged at the applicable LT-II tariff;
c) All Students Hostels affiliated to Educational Institutions;
d) All other Students’ or Working Men/Women’s Hostels;
e) Other types of Homes/Hostels, such as (i)
Homes/Hostels for Destitute, Disabled Persons
(physically or mentally handicapped persons, etc.) and
mentally ill persons (ii) Remand Homes (iii)
Dharamshalas, (iv) Rescue Homes, (v) Orphanages, (vi)
Day care Centre for senior citizen- subject to verification
and confirmation by the Distribution Licensee;
f) Government / Private / Co-operative Housing
Colonies/complexes (where electricity is used
exclusively for domestic purposes) only for common
facilities such as Water Pumping / Street and other
common area Lighting / Lifts /Parking Lots/ Fire-fighting
Pumps and other equipment, etc.;
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g)
h)
i)
j)
k)
Proposed Applicability
common area Lighting / Lifts /Parking Lots/ Fire-fighting
Pumps and other equipment, etc.;
Sports Clubs or facilities / Health Clubs or facilities /
Gymnasium / Swimming Pool / Community Hall of
Government / Private / Co-operative Housing
Colonies/complexes - provided that they are situated in
the same premises, and are for the exclusive use of the
members and employees of such
Housing
Colonies/complexes;
Telephone booths owned/operated by Persons with
Disabilities/Handicapped persons;
Residential premises used by professionals like
Lawyers, Doctors, Engineers, Chartered Accountants,
etc., in furtherance of their professional activities, but
not including Nursing Homes and Surgical Wards or
Hospitals;
Single-phase household Flour Mills (Ghar-ghanti) used
only for captive purposes;
A residential LT consumer with consumption upto 500
units per month (current month of supply) who
undertakes construction or renovation activity in his
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g) Sports Clubs or facilities / Health Clubs or facilities /
Gymnasium / Swimming Pool / Community Hall of
Government / Private / Co-operative Housing
Colonies/complexes - provided that they are situated in
the same premises, and are for the exclusive use of the
members and employees of such
Housing
Colonies/complexes;
h) Telephone booths owned/operated by Persons with
Disabilities/Handicapped persons;
i) Residential premises used by professionals like
Lawyers, Doctors, Engineers, Chartered Accountants,
etc., in furtherance of their professional activities, but not
including Nursing Homes and Surgical Wards or
Hospitals;
j) Single-phase household Flour Mills (Ghar-ghanti) used
only for captive purposesself-use;
k) A residential LT consumer with consumption upto 500
units per month (current month of supply) who
undertakes construction or renovation activity in his
existing premises: such consumer shall not require a
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l)
Proposed Applicability
existing premises: such consumer shall not require a
separate temporary connection, and would be billed at
separate temporary connection, and would be billed at
this Residential tariff rate;
this Residential tariff rate;
Note:
Note:
This tariff category shall also be applicable to consumers
This tariff category shall also be applicable to
who are supplied power at High Voltage for any of the
consumers who are supplied power at High Voltage for
purposes (a) to (k) above.
any of the purposes (a) to (k) above.
l) Consumers undertaking business or commercial /
industrial / non-residential activities from a part of their
Consumers undertaking business or commercial /
residence, whose monthly consumption is upto 300 units
industrial / non-residential activities from a part of their
a month and annual consumption in the previous
residence, whose monthly consumption is upto 300
financial year was upto 3600 units. The applicability of
units a month and annual consumption in the previous
this tariff to such consumers will be assessed at the end
financial year was upto 3600 units. The applicability of
of each financial year. In case consumption has
this tariff to such consumers will be assessed at the end
exceeded 3600 units in the previous financial year, the
of each financial year. In case consumption has
consumer will thereafter not be eligible for the tariff under
exceeded 3600 units in the previous financial year, the
this category but be charged at the tariff otherwise
consumer will thereafter not be eligible for the tariff
applicable for such consumption, with prior intimation to
under this category but be charged at the tariff
him.
otherwise applicable for such consumption, with prior m) Entities supplied electricity at a single point at
intimation to him.
Low/Medium Voltage for residential purposes, in
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m) Entities supplied electricity at a single point at
accordance with the Electricity (Removal of Difficulties)
Low/Medium Voltage for residential purposes, in
Eighth Order, 2005, in the following cases:
accordance with the Electricity (Removal of Difficulties)
(i) a Co-operative Group Housing Society which owns
Eighth Order, 2005, in the following cases:
the premises, for making electricity available to the
(i) a Co-operative Group Housing Society which owns
members of such Society residing in the same
the premises, for making electricity available to the
premises for residential purposes; and
members of such Society residing in the same
premises for residential purposes; and
(ii) a person, for making electricity available to its
(ii) a person, for making electricity available to its
employees residing in the same premises for
employees residing in the same premises for
residential purposes.
residential purposes.
Note:
Note:
a) For three phase supply, an additional fixed charge of
a) For three phase supply, an additional fixed charge of
Rs.185 per 10kW load or part thereof above 10 kW load
Rs.185 per 10kW load or part thereof above 10 kW load
shall also be payable.
shall also be payable.
b) Professionals like Lawyers, Doctors, Professional
b) Professionals like Lawyers, Doctors, Professional
Engineers, Chartered Accountants, etc., occupying
Engineers, Chartered Accountants, etc., occupying
residential premises exclusively for conducting their
premises exclusively for conducting their profession,
profession, shall not be eligible for this tariff, and will be
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shall not be eligible for this tariff, and will be charged at
the tariff applicable to the respective categories.
3.
charged at the tariff applicable to the respective
categories.
LT II: LT– Non-Residential
LT II: LT– Non-Residential
Applicability:
(A) 0-20 kW
This tariff category is applicable for electricity used at
Low/Medium voltage in non-residential, non-industrial
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 and water
pumping in, but not limited to, the following premises:
a) Non-Residential, Commercial and Business premises,
including Shopping Malls and Showrooms;
b) Combined lighting and power supply for facilities relating
to Entertainment, including film studios, cinemas and
theatres (including multiplexes), Hospitality, Leisure,
Meeting/Town Halls, and places of Recreation and
Public Entertainment;
Applicability:
(A) 0-20 kVA
This tariff category is applicable for electricity used at
Low/Medium voltage in non-residential, non-industrial
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 and water
pumping in, but not limited to, the following premises:
a) Non-Residential, Commercial and Business premises,
including Shopping Malls and Showrooms;
b) Combined lighting and power supply for facilities relating
to Entertainment, including film studios, cinemas and
theatres (including multiplexes), Hospitality, Leisure,
Meeting/Town Halls, and places of Recreation and
Public Entertainment;
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c) Offices, including Commercial Establishments;
d) Marriage Halls, Hotels / Restaurants, Ice-cream
parlours, Coffee Shops, Guest Houses, Internet / Cyber
Cafes, Telephone Booths not covered under the LT I
category, and Fax / Photocopy shops;
e) Automobile and all other types of repairs, servicing and
maintenance centres (unless specifically covered under
another tariff category); Retail Gas Filling Stations,
Petrol Pumps and Service Stations, including Garages;
f) Tailoring Shops, Computer Training Institutes, Typing
Institutes, Photo Laboratories, Beauty Parlours and
Saloons;
g) Banks and ATM centres, Telephone Exchanges, TV
Stations, Microwave Stations, Radio Stations,
Telecommunications Towers;
h) Common facilities, like Water Pumping / Lifts / FireFighting Pumps and other equipment / Street and other
common area Lighting, etc., in Commercial Complexes;
i) Sports
Clubs/facilities,
Health
Clubs/facilities,
Gymnasiums, Swimming Pools not covered under any
other category;
c) Offices, including Commercial Establishments;
d) Marriage Halls, Resorts, Hotels / Restaurants, Ice-cream
parlours, Commercial Water ATM (RO/UV/UF Water
Purifier Plants), Coffee Shops, Guest Houses, Internet /
Cyber Cafes, Telephone Booths not covered under the
LT I category, and Fax / Photocopy shops;
e) Automobile and all other types of repairs, servicing and
maintenance centres (unless specifically covered under
another tariff category); Retail Gas Filling Stations,
Petrol Pumps and Service Stations, including Garages;
f) Tailoring Shops, Computer Training Institutes, Typing
Institutes, Photo Laboratories, Beauty Parlours and
Saloons;
g) Banks and ATM centres, Telephone Exchanges, TV
Stations, Microwave Stations, Radio Stations,
Telecommunications Towers;
h) Common facilities, like Water Pumping / Lifts / FireFighting Pumps and other equipment / Street and other
common area Lighting, etc., in Commercial Complexes;
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Proposed Applicability
j) External illumination of monuments/ historical/ heritage
buildings
approved
by
Maharashtra
Tourism
Development Corporation (MTDC) or the concerned
Local Authority;
k) Construction of all types of structures/ infrastructure
such as buildings, bridges, fly-overs, dams, Power
Stations, roads, Aerodromes, tunnels for laying of
pipelines for all purposes, and which is not covered
under the Temporary tariff category;
Note: Residential LT consumers with consumption
above 500 units per month (current month of supply) and
who undertake construction or renovation activity in their
existing premises shall not require a separate
Temporary category connection, and shall be billed at
the LT-II Commercial Tariff rate;
i) Sports
Clubs/facilities,
Health
Clubs/facilities,
Gymnasiums, Swimming Pools not covered under any
other category;
j) External illumination of monuments/ historical/ heritage
buildingsapproved
by
Maharashtra
Tourism
Development Corporation (MTDC) or the concerned
Local Authority;
k) Godowns and warehouses;
l) Construction of all types of structures/ infrastructure
such as buildings, bridges, fly-overs, dams, Power
Stations, roads, Aerodromes, tunnels for laying of
pipelines for all purposes, and which is not covered
under the Temporary tariff category;
Note:
l) Milk Collection Centres;
m) Sewage Treatment Plants/ Common Effluent Treatment
Plants for Commercial Complexes not covered under the
LT – Public Water Works or LT – Industry categories;
MSEDCL
January 20
(i) Residential LT consumers with consumption above
500 units per month (current month of supply) and
who undertake construction or renovation activity in
their existing premises shall not require a separate
Temporary category connection, and shall be billed
at the LT-II Commercial Tariff rate;
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Proposed Applicability
n) Stand-alone Research and Development units not
covered under any other category;
(ii) For Construction, initially supply will be provided
under LT VII (B) Temporary Supply Others (TSO),
after 2 years the supply will be regularized under LT
(B) > 20 kW and ≤ 50 kW and (C) > 50 kW
II Non- Residential.
m) Milk Collection Centres;
Applicability:
n) Sewage Treatment Plants/ Common Effluent Treatment
As per the applicability described in LT II (A) and for the
Plants for Commercial Complexes not covered under the
Sanctioned Load in the range applicable in this subLT – Public Water Works or LT – Industry categories;
category, i.e. LT II (B) and LT II (C).
o) Stand-alone Research and Development units not
covered under any other category;
Note: The ToD tariff is applicable to the LT-II (B) and (C)
categories, and optionally available to LT- II (A) category (B) > 20 kVA and ≤ 50 kVA and (C) > 50 kVA
consumers having ToD meter installed.
Applicability:
As per the applicability described in LT II (A) and for the
Sanctioned Load in the range applicable in this subcategory, i.e. LT II (B) and LT II (C).
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Proposed Applicability
Note: The ToD tariff is applicable to the LT-II (B) and (C)
categories, and optionally available to LT- II (A) category
consumers having ToD meter installed.
4.
LT III: LT - Public Water Works and Sewage Treatment LT III: LT - Public Water Works and Sewage Treatment
Plants
Plants
Applicability:
This tariff category is applicable for electricity / power supply
at Low / Medium Voltage for pumping of water, purification
of water and allied activities relating to Public Water Supply
Schemes and Sewage Treatment Plants, provided they are
owned or operated or managed by Local Self-Government
Bodies (Gram Panchayats, Panchayat Samitis, Zilla
Parishads, Municipal Councils and Corporations, etc.), or by
Maharashtra Jeevan Pradhikaran (MJP), Maharashtra
Industries Development Corporation (MIDC), Cantonment
Boards and Housing Societies/complexes.
MSEDCL
Applicability:
This tariff category is applicable for
(i) Electricity / power supply at Low/Medium Voltage for
pumping of water, purification of water and allied
activities relating to Public Water Supply Schemes and
Sewage Treatment Plants, provided they are owned or
operated or managed by Local Self-Government Bodies
(Gram Panchayats, Panchayat Samitis, Zilla Parishads,
Municipal Councils and Corporations, etc.), or by
Maharashtra Jeevan Pradhikaran (MJP), Maharashtra
Industries
Development
Corporation
(MIDC),
Cantonment Boards.
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5.
Existing Applicability
Proposed Applicability
All other Public Water Supply Schemes and Sewage
Treatment Plants (including allied activities) shall be billed
under the LT II or LT V category tariff, as the case may be.
LT IV: LT – Agriculture
LT IV (A): LT - Agriculture Un-metered –Pumpsets
All other Public Water Supply Schemes and Sewage
Treatment Plants (including allied activities) shall be
billed under the LT II or LT V category tariff, as the case
may be
(ii) Electricity / power supply at Low/Medium Voltage for
Sewage Treatment Plants and common effluent
treatment plants, set up by Local Self-Government
Bodies (Gram Panchayats, Panchayat Samitis, Zilla
Parishads, Municipal Councils and Corporations, etc.),
Maharashtra Industries Development Corporation
(MIDC), Industries Association or consortium of
industries., Housing societies/complexes.
LT IV: LT - Agriculture
LT IV (A): LT - Agriculture Un-metered –Pumpsets
Applicability:
Applicability:
This tariff category is applicable for motive power supplied This tariff category is applicable for motive power supplied
for Agriculture metered pumping loads, and for one lamp of for Agriculture metered pumping loads, and for one lamp of
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Proposed Applicability
wattage up to 40 to be connected to the motive power circuit wattage up to 40 to be connected to the motive power circuit
for use in pump-houses at Low/Medium Voltage.
for use in pump-houses at Low/Medium Voltage.
Note:
Note:
i. The Flat Rate Tariff as above will remain in force only till i. The Flat Rate Tariff as above will remain in force only
meters are installed; once meter is installed, the
till meters are installed; once meter is installed, the
consumer will be billed as per the Tariff applicable to
consumer will be billed as per the Tariff applicable to
metered agricultural consumers.
metered agricultural consumers.
ii. The list of Category 1 Zones (with consumption norm ii. The list of Category 1 Zones (with consumption norm
above 1318 hours/ HP/year) and Category 2 Zones (with
above 1318 hours/ HP/year) and Category 2 Zones
consumption norm below 1318 hours/HP/year) is given
(with consumption norm below 1318 hours/HP/year) is
as below:
given as below:
Category 1 Zones (with Category 2 Zones (with
consumption norm above consumption norm below
1318 hours/HP/year)
1318 hours/HP/year)
Bhandup (U), Pune, Nashik,
Baramati, Jalgaon
MSEDCL
Amaravati, Aurangabad,
Kalyan, Konkan, Kolhapur,
Latur, Nagpur,
Chandrapur, Gondia,
Nanded, Akola
Category 1 Zones (with
consumption norm above
1318 hours/HP/year)
Bhandup (U), Pune, Nashik,
Baramati, Jalgaon
January 20
Category 2 Zones (with
consumption norm below
1318 hours/HP/year)
Amaravati, Aurangabad,
Kalyan, Konkan, Kolhapur,
Latur, Nagpur, Chandrapur,
Gondia, Nanded, Akola
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Proposed Applicability
iii. Supply under this Tariff will be given for a minimum load iii.
of 2 HP. If any consumer requires any load less than 2
HP for agricultural purposes, he shall be required to pay
the Fixed Charge/Energy Charge on this basis as if a
load of 2 HP is connected.
Supply under this Tariff will be given for a minimum
load of 2 HP. If any consumer requires any load less
than 2 HP for agricultural purposes, he shall be
required to pay the Fixed Charge/Energy Charge on
this basis as if a load of 2 HP is connected.
LT IV (B): LT – Agriculture Metered – Pumpsets
LT IV (B): LT – Agriculture Metered – Pumpsets
Applicability:
This tariff category is applicable for motive power supplied
for Agriculture metered pumping loads, and for one lamp of
wattage up to 40 to be connected to the motive power circuit
for use in pump-houses at Low/Medium Voltage.
It is also applicable for power supply for cane crushers
and/or fodder cutters for self-use for agricultural processing
operations, but not for operating a flour mill, oil mill or
expeller in the same premises, either operated by a
separate motor or a change of belt drive.
Applicability:
This tariff category is applicable for motive power supplied
for Agriculture metered pumping loads, and for one lamp of
wattage up to 40 to be connected to the motive power circuit
for use in pump-houses at Low/Medium Voltage.
It is also applicable for power supply for cane crushers
and/or fodder cutters for self-use for agricultural processing
operations, but not for operating a flour mill, oil mill or
expeller in the same premises, either operated by a
separate motor or a change of belt drive.
LT IV (C): LT - Agriculture Metered – Others
LT IV (C): LT - Agriculture Metered – Others
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6.
Existing Applicability
Proposed Applicability
Applicability:
Applicability:
This category shall be applicable for use of electricity / This category shall be applicable for use of electricity /
power supply at Low / Medium Voltage for:
power supply at Low / Medium Voltage for:
a. Pre-cooling plants and cold storage units for Agriculture a. Pre-cooling plants and cold storage units for Agriculture
Products – processed or otherwise;
Products – processed or otherwise;
b. Poultries exclusively undertaking Layer & Broiler b. Poultries exclusively undertaking Layer & Broiler
activities, including Hatcheries;
activities, including Hatcheries;
c. High-Tech Agriculture (i.e. Tissue Culture, Green c. High-Tech Agriculture (i.e. Tissue Culture, Green
House, Mushroom activities), provided the power supply
House, Mushroom activities), provided the power supply
is exclusively utilized by such Hi-Tech Agriculture
is exclusively utilized by such Hi-Tech Agriculture
consumers for purposes directly concerned with the crop
consumers for purposes directly concerned with the
cultivation process, and that the power is not utilized for
crop cultivation process, and that the power is not
any engineering or industrial process;
utilized for any engineering or industrial process;
Floriculture, Horticulture, Nurseries, Plantations, stand- d. Floriculture, Horticulture, Nurseries, Plantations, standalone Aquaculture, Sericulture, Cattle Breeding Farms,
alone Aquaculture, Sericulture, Cattle Breeding Farms,
etc.
etc.;
LT V: LT- Industry
LT V: LT- Industry
LT-V (A): LT – Industry –Powerlooms
Applicability:
MSEDCL
LT-V (A): LT – Industry –Powerlooms
Applicability:
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Proposed Applicability
This category shall be applicable for power supply to
Powerlooms including other allied activities like, Warping,
Doubling, Twisting, etc., connected at Low/Medium Tension
only.
Note: The ToD Tariff is compulsorily applicable for LT V (A)
(ii) (i.e., above 20 kW), and optionally available to LT- V (A)
(i) (i.e., up to 20 kW) having ToD meter installed.
This category shall be applicable for power supply to
Powerlooms including other allied activities like, Warping,
Doubling, Twisting, etc., connected at Low/Medium Tension
only.
Note: The ToD Tariff is compulsorily applicable for LT V (A)
(ii) (i.e., above 20 kVA), and optionally available to LT- V (A)
(i) (i.e., up to 20 kVA) having ToD meter installed.
LT-V (B): LT - Industry – General
LT-V (B): LT - Industry – General
Applicability:
This tariff category is applicable for electricity for Industrial
use, at Low/Medium Voltage, for purposes of manufacturing
and processing, including electricity used within such
premises for general lighting, heating/cooling, etc.
It is also applicable for use of electricity / power supply for
Administrative Offices / Canteens, Recreation Hall / Sports
Club or facilities / Health Club or facilities/ Gymnasium /
Swimming Pool exclusively meant for employees of the
Applicability:
This tariff category is applicable for electricity for Industrial
use, at Low/Medium Voltage, for purposes of manufacturing
and processing, including electricity used within such
premises for general lighting, heating/cooling, etc.
It is also applicable for use of electricity / power supply for
Administrative Offices / Canteens, Recreation Hall / Sports
Club or facilities / Health Club or facilities/ Gymnasium /
Swimming Pool exclusively meant for employees of the
MSEDCL
January 20
320
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No.
Existing Applicability
Proposed Applicability
industry; lifts, water pumps, fire-fighting pumps and industry; lifts, water pumps, fire-fighting pumps and
equipment, street and common area lighting; Research and equipment, street and common area lighting; Research and
Development units, Dhobi/Laundry etc. Development units, Dhobi/Laundry; Common facility Centre
(CFC) establish under cluster development program of
Provided that all such facilities are situated within the same Central/State Government etc.
industrial premises and supplied power from the same point
of supply;
Provided that all such facilities are situated within the same
This tariff category shall also be applicable for use of industrial premises and supplied power from the same point
electricity / power supply by an Information Technology (IT) of supply;
or IT-enabled Services (ITeS) Unit as defined in the This tariff category shall also be applicable for use of
applicable IT/ITeS Policy of Government of Maharashtra. electricity / power supply by an Information Technology (IT)
Where such Unit does not hold the relevant permanent or IT-enabled Services (ITeS) Unit as defined in the
registration Certificate, the tariff shall be as per the LT II applicable IT/ITeS Policy of Government of Maharashtra.
category, and the LT V(B) tariff shall apply to it after receipt Where such Unit does not hold the relevant valid permanent
of such permanent registration Certificate and till it is valid. registration Certificate, the tariff shall be as per the LT II
category, and the LT V(B) tariff shall apply to it after receipt
It shall also be applicable for use of electricity / power supply of such permanent registration Certificate and till it is valid.
for (but not limited to) the following purposes:
It shall also be applicable for use of electricity / power supply
a. Flour Mill, Dal Mill, Rice Mill, Poha Mill, Masala Mill,
for (but not limited to) the following purposes:
Saw Mill;
MSEDCL
January 20
321
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No.
Existing Applicability
Proposed Applicability
b. Ice Factory, Ice-cream manufacturing units, Milk
Processing / Chilling Plants (Dairy);
c. Engineering Workshops, Engineering Goods
Manufacturing units; Printing Presses; Transformer
Repair Workshops; Tyre Remoulding/Retreading
units; and Vulcanizing units;
d. Mining, Quarrying and Stone Crushing units;
e. Garment Manufacturing units;
f. LPG/CNG bottling plants, etc.;
g. Sewage Treatment Plant/ Common Effluent Treatment
Plant for industries, and not covered under the LT –
Public Water Works category
h. Start-up power for Generating Plants, i.e. the power
required for trial run of a Power Plant during
commissioning of the Unit and its Auxiliaries, and for its
start-up after planned or forced outage (but not for
construction);
i. Brick Kiln (Bhatti);
j. Biotechnology Industries covered under the
Biotechnology Policy of Government of Maharashtra;
MSEDCL
a. Flour Mill, Dal Mill, Rice Mill, Poha Mill, Masala Mill,
Saw Mill;
b. Ice Factory, Ice-cream manufacturing units, Milk
Processing / Chilling Plants (Dairy), Packaged drinking
water plants;
c. Engineering
Workshops,
Engineering
Goods
Manufacturing units; Printing Presses; Transformer
Repair Workshops; Tyre Remoulding/Retreading units;
and Vulcanizing units;
d. Mining, Quarrying and Stone Crushing units;
e. Garment Manufacturing units;
f. LPG/CNG bottling plants, etc.;
g. Sewage Treatment Plant/ Common Effluent Treatment
Plant for industries not covered under the LT – Public
Water Works category;
h. Start-up power for Generating Plants, i.e. the power
required for trial run of a Power Plant during
commissioning of the Unit and its Auxiliaries, and for its
start-up after planned or forced outage (but not for
construction);
i. Brick Kiln (Bhatti);
January 20
322
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No.
7.
Existing Applicability
Proposed Applicability
k. Cold Storages not covered under LT IV (C) –
j. Biotechnology
Industries
covered
under
the
Agriculture (Others);
Biotechnology Policy of Government of Maharashtra;
l. Food (including seafood) Processing units;
k. Cold Storages not covered under LT IV (C) – Agriculture
m. Seed manufacturing;
(Others);
n. Dedicated water supply schemes to power plants;
l. Food (including seafood) Processing units;
o. Auxiliary Power supply to EHV/Distribution
m.Seed manufacturing;
Substations (but not for construction)
n. Dedicated water supply schemes to power plants;
Note:
o. Auxiliary Power supply to EHV/Distribution Substations
The ToD Tariff is applicable for LT-V (B) (ii) (i.e. above 20
(but not for construction);
kW), and optionally available to LT-V (B) (i) (i.e. up to 20 p. Ordinance Factories of Defence Establishments
kW) having ToD meter installed.
Note:
The ToD Tariff is applicable for LT-V (B) (ii) (i.e. above 20
kVA), and optionally available to LT-V (B) (i) (i.e. up to 20
kVA) having ToD meter installed.
LT VI: LT – Street Light
LT VI: LT – Street Light
Applicability:
This tariff category is applicable for the electricity used for
lighting of public streets/ thoroughfares which are open for
use by the general public, at Low / Medium Voltage, and
also at High Voltage.
MSEDCL
Applicability:
This tariff category is applicable for the electricity used for
lighting of public streets/ thoroughfares which are open for
use by the general public, at Low / Medium Voltage, and
also at High Voltage.
January 20
323
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Main Petition
Sr.
No.
Existing Applicability
Proposed Applicability
Street lights in residential complexes, commercial
complexes, industrial premises, etc. will be billed at the tariff
of the respective applicable categories.
This category is also applicable for use of electricity / power
supply at Low / Medium Voltage or at High Voltage for (but
not limited to) the following purposes, irrespective of who
owns, operates or maintains these facilities:
a) Lighting in Public Gardens (i.e. which are open to the
general public free of charge);
Street lights in residential complexes, commercial
complexes, industrial premises, etc. will be billed at the tariff
of the respective applicable categories.
This category is also applicable for use of electricity / power
supply at Low / Medium Voltage or at High Voltage for (but
not limited to) the following purposes, irrespective of who
owns, operates or maintains these facilities:
a) Lighting in Public Gardens (i.e. which are open to the
general public free of charge);
b) Traffic Signals and Traffic Islands;
b) Traffic Signals and Traffic Islands;
c) Public Sanitary Conveniences;
c) Public Sanitary Conveniences;
d) Public Water Fountains; and
d) Public Water Fountains; and
e) Such other public places open to the general public
free of charge.
e) Such other public places open to the general public
free of charge.
Note:
Note:
MSEDCL
January 20
324
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Provisional True Up For FY 2019-20 and
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Main Petition
Sr.
No.
Existing Applicability
Proposed Applicability
The above street and other lighting facilities having The above street and other lighting facilities having
‘Automatic Timers’ for switching On/Off would be levied ‘Automatic Timers’ for switching On/Off would be levied
Demand Charges on the lower of the following–
Demand Charges on the lower of the following–
8.
i) 50 percent of ‘Contract Demand’ or
ii) Actual ‘Recorded Demand’.
LT VII: LT-Temporary Supply
LT VII (A): LT – Temporary Supply Religious (TSR)
i) 50 percent of ‘Contract Demand’ or
ii) Actual ‘Recorded Demand’.
LT VII: LT-Temporary Supply
LT VII (A): LT – Temporary Supply Religious (TSR)
Applicability:
This tariff category is applicable for electricity supply at
Low/Medium voltage for temporary purposes for public
religious functions like Ganesh Utsav, Navaratri, Eid,
Moharrum, Ram Lila, Diwali, Christmas, Guru Nanak
Jayanti, etc., and for areas where community prayers are
held; and for functions to commemorate anniversaries of
personalities and National or State events for which Public
Holidays have been declared, such as Gandhi Jayanti,
Ambedkar Jayanti, Chhatrapati Shivaji Jayanti, Republic
Day, Independence Day, etc.
Applicability:
This tariff category is applicable for electricity supply at
Low/Medium voltage for temporary purposes for a period
not exceeding two year for public religious functions, like
Ganesh Utsav, Navaratri, Eid, Moharrum, Ram Lila, Diwali,
Christmas, Guru Nanak Jayanti, etc., and for areas where
community prayers are held; for functions to commemorate
anniversaries of personalities and National or State events
for which Public Holidays have been declared, such as
Gandhi Jayanti, Ambedkar Jayanti, Chhatrapati Shivaji
Jayanti, Republic Day, Independence Day, lighting for
MSEDCL
January 20
325
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No.
Existing Applicability
Proposed Applicability
religious exhibitions & Gatherings (Satsang, Spiritual talks,
Spiritual Book Exhibition) etc.
LT VII (B): LT - Temporary Supply Others (TSO)
LT VII (B): LT - Temporary Supply Others (TSO)
Applicability:
This tariff category is applicable for electricity used at
Low/Medium voltage for Temporary use for a period not
exceeding one year, other than for the religious or
commemorative
purposes covered under LT VII (A), for
a) Construction of all types of structures/ infrastructure
such as buildings, bridges, fly-overs, dams, Power
Stations, roads, Aerodromes, tunnels for laying of
pipelines;
b) Any construction or renovation activity in existing
premises;
c) Decorative lighting for exhibitions, circuses, film
shootings, marriages, etc.,
d) Any other activity not covered under LT VII (A).
Applicability:
This tariff category is applicable for electricity used at
Low/Medium voltage for Temporary use for a period not
exceeding onetwoyear, other than for the religious or
commemorative
purposes covered under LT VII (A), for
a) Construction of all types of structures/ infrastructure
such as buildings, bridges, fly-overs, dams, Power
Stations, roads, Aerodromes, tunnels for laying of
pipelines;
b) Any construction or renovation activity in existing
premises;
c) Decorative Lighting for exhibitions other than religious
exhibitions covered under LT VII (A), circuses, film
shootings, marriages, etc.,
d) Any other activity not covered under LT VII (A).
Note:
MSEDCL
January 20
326
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No.
Existing Applicability
Proposed Applicability
i. Additional Fixed Charges of Rs. 185 per 10 kW load or Note:
i. Additional Fixed Charges of Rs. 185 per 10 kW load or
part thereof above 10 kW load shall be payable.
part thereof above 10 kW load shall be payable.
ii. Electricity used at Low / Medium Voltage for operating
Fire-Fighting pumps and equipment in residential or ii. Electricity used at Low / Medium Voltage for operating
Fire-Fighting pumps and equipment in residential or
other premises shall be charged as per the tariff
other premises shall be charged as per the tariff
category applicable to such premises.
category applicable to such premises.
9.
LT VIII: LT - Advertisements and Hoardings
LT VIII: LT - Advertisements and Hoardings
Applicability:
This tariff category is applicable for use of electricity at Low/
Medium Voltage for advertisements, hoardings (including
hoardings fixed on lamp posts/installed along roadsides),
and other commercial illumination such as external floodlights, displays, neon signs at departmental stores, malls,
multiplexes, theatres, clubs, hotels and other such
establishments;
Note:
Applicability:
This tariff category is applicable for use of electricity at Low/
Medium Voltage for advertisements, hoardings (including
hoardings fixed on lamp posts/installed along roadsides),
and other commercial illumination such as external floodlights, displays, neon signs at departmental stores, malls,
multiplexes, theatres, clubs, hotels and other such
establishments;
Note:
MSEDCL
January 20
327
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No.
10.
Existing Applicability
Proposed Applicability
a) Consumers availing power supply at High Voltage for a) Consumers availing power supply at High Voltage for
any of the above purposes shall be billed as per the tariff
any of the above purposes shall be billed as per the tariff
of this LT category.
of this LT category.
b) This category is not applicable to use of electricity b) This category is not applicable to use of electricity for the
specifically covered under the LT-II category; or to
external
illumination
of
monuments
and
electricity used for the external illumination of
historical/heritage buildings which is specifically covered
monuments and historical/heritage buildings approved
under the LT-II category; or to electricity used approved
by MTDC or the concerned Local Authority, which shall
by MTDC or the concerned Local Authority, which shall
be covered under the LT-II category depending upon
be covered under the LT-II category depending upon the
the Sanctioned Load.
Sanctioned Load.
c) The electricity used for indicating/ displaying the name c) The electricity used for indicating/ displaying the name
and other details of the premises shall be covered under
and other details of the premises shall be covered under
the category of such premises, and not under this tariff
the category of such premises, and not under this tariff
category.
category.
LT IX: LT- Crematorium and Burial Grounds
LT IX: LT- Crematorium and Burial Grounds
Applicability:
MSEDCL
Applicability:
January 20
328
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No.
Existing Applicability
Proposed Applicability
This tariff category is applicable for electricity used at This tariff category is applicable for electricity used at
Low/Medium Voltage in Crematoriums and Burial Grounds Low/Medium Voltage in Crematoriums and Burial Grounds
for all purposes, including lighting.
for all purposes, including lighting.
11.
However, it will be applicable only to the portion of the
premises catering to such activities. In case a part of the
area is being used for other purposes, a separate meter will
have to be provided for such purposes and the consumption
charged at the applicable tariff.
LT X: LT - Public Services
However, it will be applicable only to the portion of the
premises catering to such activities. In case a part of the
area is being used for other purposes, a separate meter will
have to be provided for such purposes and the consumption
charged at the applicable tariff.
LT X: LT - Public Services
LT X (A): LT - Public Services - Government Educational LT X (A): LT - Public Services - Government Educational
Institutes and Hospitals
Institutes and Hospitals
Applicability:
This tariff category is applicable for electricity supply at
Low/Medium Voltage for Educational Institutions, such as
Schools and Colleges; Health Care facilities, such as
Hospitals, Dispensaries, Clinics, Primary Health Care
Centres, Diagnostic Centres, Blood Banks and Pathology
Laboratories; Libraries and public reading rooms - of the
MSEDCL
Applicability:
This tariff category is applicable for electricity supply at
Low/Medium Voltage for Educational Institutions, such as
Schools and Colleges; Health Care facilities, such as
Hospitals, Dispensaries, Clinics, Primary Health Care
Centres, Diagnostic Centres, Blood Banks and Pathology
Laboratories; Libraries and public reading rooms - of the
January 20
329
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No.
Existing Applicability
Proposed Applicability
State or Central Government or Local Self-Government
bodies such as Municipalities, Zilla Parishads, Panchayat
Samitis, Gram Panchayats, etc;
It shall also be applicable for electricity used for Sports
Clubs and facilities / Health Clubs and facilities /
Gymnasium / Swimming Pools attached to such
Educational Institutions / Hospitals, provided that they are
situated in the same premises and are meant primarily for
their students / faculty/ employees/ patients.
Note:
The ToD Tariff is applicable for LT-X (A) (ii) and LT-X (A)
(iii) (i.e., above 20 kW)and optionally available to LT- X (A)
(i) (i.e., up to 20 kW) having ToD meter installed.
State or Central Government or Local Self-Government
bodies such as Municipalities, Zilla Parishads, Panchayat
Samitis, Gram Panchayats, etc;
It shall also be applicable for electricity used for Sports
Clubs,and facilities / Health Clubs, Hostels,and facilities
/Gymnasium / Swimming Pools attached to such
Educational Institutions / Hospitals, provided that they are
situated in the same premises and are meant primarily for
their students / faculty/ employees/ patients.
Note:
The ToD Tariff is applicable for LT-X (A) (ii) and LT-X (A)
(iii) (i.e., above 20 kVA)and optionally available to LT- X (A)
(i) (i.e., up to 20 kVA) having ToD meter installed.
LT X (B): LT - Public Services – Others
LT X (B): LT - Public Services – Others
Applicability:
This tariff category is applicable for electricity supply at Applicability:
This tariff category is applicable for electricity supply at
Low/Medium Voltage for
Low/Medium Voltage for
a) Educational Institutions, such as Schools and Colleges;
Health Care facilities, such as Hospitals, Dispensaries,
MSEDCL
January 20
330
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Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No.
Existing Applicability
b)
c)
d)
e)
Proposed Applicability
Clinics, Primary Health Care Centres, Diagnostic
Centres, Blood banks and Pathology Laboratories;
Libraries and public reading rooms - other than those of
the State or Central Government or Local SelfGovernment bodies such as Municipalities, Zilla
Parishads, Panchayat Samitis, Gram Panchayats, etc.
Sports Clubs and facilities / Health Clubs and facilities /
Gymnasium / Swimming Pools attached to such
Educational Institutions /Health Care facilities, provided
that they are situated in the same premises and are
meant primarily for their students / faculty/ employees/
patients;
all offices of Government and Municipal/ Local
Authorities/ Local Self-Government bodies, such as
Municipalities, ZillaParishads, PanchayatSamitis, Gram
Panchayats; Police Stations and Police Chowkies; Post
Offices; Armed Forces/Defence and Para-Military
establishments;
Service-oriented Spiritual Organisations;
State
or
Municipal/Local
Authority
Transport
establishments, including their Workshops;
MSEDCL
a) Educational Institutions, such as Schools and Colleges;
Health Care facilities, such as Hospitals, Dispensaries,
Clinics, Primary Health Care Centres, Diagnostic
Centres, Blood banks and Pathology Laboratories;
Libraries and public reading rooms - other than those of
the State or Central Government or Local SelfGovernment bodies such as Municipalities, Zilla
Parishads, Panchayat Samitis, Gram Panchayats, etc.
b) Sports Clubs,andfacilities / Health Clubs, Hostels,and
facilities /Gymnasium / Swimming Pools attached to
such Educational Institutions /Health Care facilities,
provided that they are situated in the same premises
and are meant primarily for their students / faculty/
employees/ patients;
c) all offices of Government and Municipal/ Local
Authorities/ Local Self-Government bodies, such as
Municipalities, Zilla Parishads, Panchayat Samitis,
Gram Panchayats; Police Stations and Police
Chowkies; Post Offices; Armed Forces/Defence and
Para-Military establishments; Administrative offices of
MSEDCL/MSETCL & MSPGCL.
January 20
331
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Main Petition
Sr.
No.
Existing Applicability
f)
g)
h)
i)
12.
Proposed Applicability
Fire Service Stations; Jails, Prisons; Courts;
Airports;
Ports and Jetties;
Railway/Metro/Monorail Stations, including Shops,
Workshops, Yards, etc, if the supply is at Low/ Medium
Voltage.
d) Service-oriented Spiritual Organisations;
e) State or Municipal/Local Authority Transport
establishments, including their Workshops;
f) Fire Service Stations; Jails, Prisons; Courts;
g) Airports;
h) Ports and Jetties;
i) Public Sanitary Conveniences/Toilets;
j) Water ATM (RO/UV/UF Water Purifier Plants) of Local
bodies;
k) Railway/Metro/Monorail Stations, including Shops,
Workshops, Yards, etc., if the supply is at Low/ Medium
Voltage.
LT (XI) LT : Electrical Charging Stations/Centers for LT (XI) LT : Electrical Charging Stations/Centers for
Vehicles
Vehicles
Applicability:
Applicability:
This Tariff category is applicable for Electric Vehicle This Tariff category is applicable for Electric Vehicle
Charging Station
Charging Station
MSEDCL
January 20
332
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No.
Existing Applicability
Proposed Applicability
In case the consumer uses the electricity supply for In case the consumer uses the electricity supply for
charging his own electric vehicle at his premises, the tariff charging his own electric vehicle at his premises, the tariff
applicable shall be as per the category of such premises.
applicable shall be as per the category of such premises.
Electricity consumption for other facilities at Charging
Station such as restaurant, rest rooms, convenience stores,
etc., shall be charged at tariff applicable to Commercial
Category.
Electricity consumption for other facilities at Charging
Station such as restaurant, rest rooms, convenience stores,
etc., shall be charged at tariff applicable to Commercial
Category.
15.3 HT Category
Sr.
No
.
1.
Existing Applicability
Proposed Applicability
HT I: HT- Industry
HT I (A): Industry- General
HT I: HT- Industry
HT I (A): Industry- General
Applicability:
This tariff category is applicable for electricity for Industrial use at
High Voltage for purposes of manufacturing and processing,
including electricity used within such premises for general lighting,
heating/cooling, etc.
Applicability:
This tariff category is applicable for electricity for Industrial use
at High Voltage for purposes of manufacturing and processing,
including electricity used within such premises for general
lighting, heating/cooling, etc.
MSEDCL
January 20
333
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No
.
Existing Applicability
Proposed Applicability
It is also applicable for use of electricity / power supply for
Administrative Offices / Canteen, Recreation Hall / Sports Club or
facilities / Health Club or facilities/ Gymnasium / Swimming Pool
exclusively meant for employees of the industry; lifts, water pumps,
fire-fighting pumps and equipment, street and common area lighting;
Research and Development units, etc. –
It is also applicable for use of electricity / power supply in the
same contiguous premises for Administrative Offices /
Canteen, Recreation Hall / Sports Club or facilities / Health
Club or facilities/ Gymnasium / Swimming Pool exclusively
meant for employees of the industry; lifts, water pumps, firefighting pumps and equipment, street and common area
lighting; Research and Development units, unit specific
sewage treatment plants/effluent treatment plants etc.
Provided that all such facilities are situated within the same industrial
premises and supplied power from the same point of supply.
This tariff category shall be applicable for use of electricity / power
supply by an Information Technology (IT) or IT-enabled Services
(ITeS) Unit as defined in the applicable IT/ITes Policy of Government
of Maharashtra. Where such Unit does not hold the relevant
permanent registration Certificate, the tariff shall be as per the HT II
category, and the HT I tariff shall apply to it after receipt of such
permanent registration Certificate and till it is valid.
Provided that all such facilities are situated within the same
industrial premises and supplied power from the same point of
supply.
This tariff category shall be applicable for use of electricity /
power supply by an Information Technology (IT) or IT-enabled
Services (ITeS) Unit as defined in the applicable IT/ITes Policy
of Government of Maharashtra. Where such Unit does not hold
the relevant valid permanent registration Certificate, the tariff
shall be as per the HT II category, and the HT I tariff shall apply
to it after receipt of such permanent registration Certificate and
It shall also be applicable for use of electricity / power supply for (but
till it is valid.
not limited to) the following purposes:
MSEDCL
January 20
334
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No
.
Existing Applicability
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
k)
l)
Proposed Applicability
Flour Mills, Dal Mills, Rice Mills, Poha Mills, Masala Mills, Saw It shall also be applicable for use of electricity / power supply
Mills;
for (but not limited to) the following purposes:
Ice Factories, Ice-cream manufacturing units, Milk Processing
a) Flour Mills, Dal Mills, Rice Mills, Poha Mills, Masala Mills,
/ Chilling Plants (Dairy);
Saw Mills;
Engineering Workshops, Engineering Goods manufacturing
b)
Ice Factories, Ice-cream manufacturing units, Milk
units; Printing Presses; Transformer Repair Workshops; Tyre
Processing / Chilling Plants (Dairy);
Remoulding/Retreading units, and Vulcanizing units;
c) Engineering
Workshops,
Engineering
Goods
Mining, Quarrying and Stone Crushing units;
manufacturing
units;
Printing
Presses;
Transformer
Garment Manufacturing units
Repair Workshops; Tyre Remoulding/Retreading units,
LPG/CNG bottling plants, etc.;
and Vulcanizing units;
Sewage Treatment Plant/ Common Effluent Treatment Plant
d)
Mining, Quarrying and Stone Crushing units;
for industries, and not covered under the HT – PWW category
e) Garment Manufacturing units
Start-up power for Generating Plants, i.e., the power required
f) LPG/CNG bottling plants, etc.;
for trial run of a Power Plant during commissioning of the Unit
g) Sewage Treatment Plant/ Common Effluent Treatment
and its Auxiliaries, and for its start-up after planned or forced
Plant for industries not covered under the HT – PWW
outage (but not for construction);
category;
Brick Kiln (Bhatti);
h) Start-up power for Generating Plants, i.e., the power
Biotechnology Industries covered under the Biotechnology
required for trial run of a Power Plant during
Policy of Government of Maharashtra;
commissioning of the Unit and its Auxiliaries, and for its
Cold Storages not covered under HT V (B)– Agriculture
start-up after planned or forced outage (but not for
(Others);
construction);
Food (including Seafood) Processing units.
MSEDCL
January 20
335
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No
.
Existing Applicability
Proposed Applicability
m) Seed manufacturing;
n) Dedicated Water Supply Schemes to Power Plants;
o) Auxiliary Power Supply to EHV/Distribution Substations (but
not for construction)
i) Brick Kiln (Bhatti);
j) Biotechnology
Industries
covered
under
the
Biotechnology Policy of Government of Maharashtra;
k) Cold Storages not covered under HT V (B) – Agriculture
(Others);
l) Food (including Seafood) Processing units;
m) Seed manufacturing;
n) Dedicated Water Supply Schemes to Power Plants;
o) Auxiliary Power Supply to EHV/Distribution Substations
(but not for construction);
p) Ordinance Factories of Defence Establishments.
q) Common facility Centre (CFC) established under cluster
development program of central/state Government etc.
r) Packaged Drinking Water Plant;
HT I (B): Industry – Seasonal
HT I (B): Industry – Seasonal
Applicability:
Applicable to Seasonal consumers, who are defined as those who
normally work during a part of the year up to a maximum of 9 months,
such as Cotton Ginning Factories, Cotton Seed Oil Mills, Cotton
Pressing Factories, Salt Manufacturers, Khandsari/Jaggery
Applicability:
Applicable to Seasonal consumers, who are defined as those
who normally work during a part of the year up to a maximum
of 9 months, such as Cotton Ginning Factories, Cotton Seed
Oil Mills, Cotton Pressing Factories, Salt Manufacturers,
MSEDCL
January 20
336
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
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Main Petition
Sr.
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.
Existing Applicability
Proposed Applicability
Manufacturing Units excluding Sugar Factories, or such other Khandsari/Jaggery Manufacturing Units excluding Sugar
consumers who opt for a seasonal pattern of consumption, such that Factories, or such other consumers who opt for a seasonal
the electricity requirement is seasonal in nature.
pattern of consumption, such that the electricity requirement is
seasonal in nature.
Provided that the period of operation of in a financial year should be
limited upto 9 months, and the category should be opted for by the Provided that the period of operation of in a financial year
consumer within first quarter of the financial year’.
should be limited upto 9 months, and the category should be
Note:
opted for by the consumer within first quarter of the financial
i. High Tension Industrial consumers having captive generation year’.
facility synchronised with the grid will pay additional Demand Note:
Charges of Rs. 20/kVA/Month only on the extent of Stand-by A) High Tension Industrial consumers having captive
Contract Demand component and not on the entire Contract
generation facility synchronised with the grid will pay
Demand.
additional Demand Charges in following manner:
ii. Stand-by Charges will be levied on such consumers on the Standi. If standby demand is unutilized then 25% of applicable
by component, only if the consumer‟s demand exceeds the
demand charges on standby contracted capacity needs
Contract Demand.
to be levied.
iii. This additional Demand Charge will not be applicable if there is
ii. During planned/unplanned outage of CPP, embedded
no Stand-by demand and the Captive Unit is synchronised with
CPP consumer shall pay additional Demand Charges on
the Grid only for the export of power.
utilized standby capacity at the rate of 150%of applicable
iv. Demand Charge shall be applicable at 25% of the above rates on
demand charges (on monthly basis).
the start-up demand contracted by the Power Plant (as referred
to at (h) above) with the Distribution Licensee.
MSEDCL
January 20
337
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
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Main Petition
Sr.
No
.
Existing Applicability
Proposed Applicability
v. Demand Charge shall be applicable at 75% of the above rates for
Steel Plant operating with electric arc furnaces.
iii.
Demand exceeding the contracted demand plus stand by
component shall be billed at a rate of 2 times the
applicable demand charges on monthly basis.
B) Demand Charge shall be applicable at 25% of the above
rates on the start-up demand contracted by the Power
Plant (as referred to at (h) above) with the Distribution
Licensee.
C) Demand Charge shall be applicable at 75% of the above
rates for Steel Plant operating with electric arc furnaces.
2.
HT II: HT- Commercial
HT II: HT- Commercial
Applicability:
This tariff category is applicable for electricity used at High Voltage in
non-residential, non-industrial 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 and water pumping in, but
not limited to, the following premises:
a) Non-Residential, Commercial and Business premises, including
Shopping Malls and Showrooms;
Applicability:
This tariff category is applicable for electricity used at High
Voltage in non-residential, non-industrial 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 and
water pumping in, but not limited to, the following premises:
a) Non-Residential, Commercial and Business premises,
including Shopping Malls and Showrooms;
MSEDCL
January 20
338
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No
.
Existing Applicability
Proposed Applicability
b) Combined lighting and power services for facilities relating to
Entertainment, including film studios, cinemas and theatres
(including multiplexes), Hospitality, Leisure, Meeting/Town Halls,
and places of Recreation and Public Entertainment;
c) Offices, including Commercial Establishments;
d) Marriage Halls, Hotels / Restaurants, Ice-cream parlours, Coffee
Shops, Guest Houses, Internet / Cyber Cafes, Telephone Booths
and Fax / Photocopy shops;
e) Automobile and all other types of repairs, servicing and
maintenance centres (unless specifically covered under another
tariff category); Retail Gas Filling Stations, Petrol Pumps &
Service Stations, including Garages; -
b) Combined lighting and power services for facilities
relating to Entertainment, including film studios, cinemas
and theatres (including multiplexes), Hospitality, Leisure,
Meeting/Town Halls, and places of Recreation and Public
Entertainment;
c) Offices, including Commercial Establishments;
d) Marriage Halls, Resorts, Hotels / Restaurants, Ice-cream
parlours, Commercial Water ATM (RO/UV/UF Water
Purifier Plants), Coffee Shops, Guest Houses, Internet /
Cyber Cafes, Telephone Booths and Fax / Photocopy
shops;
f) Tailoring Shops, Computer Training Institutes, Typing Institutes,
Photo Laboratories, Beauty Parlours and Saloons;
e) Automobile and all other types of repairs, servicing and
maintenance centres (unless specifically covered under
another tariff category); Retail Gas Filling Stations, Petrol
Pumps & Service Stations, including Garages; -
g) Banks and ATM centres, Telephone Exchanges, TV Stations,
Micro Wave Stations, Radio Stations, Telecommunications
Tower;
f) Tailoring Shops, Computer Training Institutes, Typing
Institutes, Photo Laboratories, Beauty Parlours and
Saloons;
MSEDCL
January 20
339
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No
.
Existing Applicability
Proposed Applicability
h) Common facilities, like Water Pumping / Lifts / Fire-Fighting
Pumps and other equipment / Street and other common area
Lighting, etc., in Commercial Complexes;
g) Banks and ATM centres, Telephone Exchanges, TV
Stations, Micro Wave Stations, Radio Stations,
Telecommunications Tower;
i) Sports Clubs/facilities, Health Clubs/facilities, Gymnasiums,
Swimming Pools not covered under any other category;
h) Common facilities, like Water Pumping / Lifts / FireFighting Pumps and other equipment / Street and other
common area Lighting, etc., in Commercial Complexes;
j) External illumination of monuments/ historical/heritage buildings
approved by Maharashtra Tourism Development Corporation
(MTDC) or the concerned Local Authority;
k) Construction of all types of structures/ infrastructure such as
buildings, bridges, fly-overs, dams, Power Stations, roads,
Aerodromes, tunnels for laying of pipelines for all purposes, and
which is not covered under the HT - Temporary category;
Note:
Residential LT consumers with consumption above 500 units per
month (current month of supply) and who undertake construction
or renovation activity in their existing premises shall not require a
separate Temporary category connection but be billed at the LTII Commercial tariff;
MSEDCL
January 20
i) Sports
Clubs/facilities,
Health
Clubs/facilities,
Gymnasiums, Swimming Pools not covered under any
other category;
j) External illumination of monuments/ historical/heritage
buildings
approved
by
Maharashtra
Tourism
Development Corporation (MTDC) or the concerned
Local Authority;
k) Godowns and warehouses;
l) Construction of all types of structures/ infrastructure such
as buildings, bridges, fly-overs, dams, Power Stations,
roads, Aerodromes, tunnels for laying of pipelines for all
340
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No
.
Existing Applicability
l)
Proposed Applicability
Milk Collection Centres;
m) Sewage Treatment Plant/ Common Effluent Treatment Plant for
Commercial Complexes , not covered under the HT- PWW
category or HT I - Industry
n) Stand-alone Research and Development units not covered under
any other category;
Note:
A consumer in the HT II category requiring single-point supply for
the purpose of downstream consumption by separately
identifiable entities shall have to operate as a Franchisee
authorised as such by the Distribution Licensee; or such
downstream entities shall be required to take separate individual
connections and be charged under the tariff category applicable
to them.
MSEDCL
January 20
purposes, and which is not covered under the HT Temporary category;
Note:
For Construction, initially supply will be provided under LT
VII (B) Temporary Supply Others (TSO), after 2 years the
supply will be regularized under LT II Non- Residential.
Residential LT consumers with consumption above 500
units per month (current month of supply) and who
undertake construction or renovation activity in their
existing premises shall not require a separate Temporary
category connection but be billed at the LT-II Commercial
tariff;
m) Milk Collection Centres;
n) Sewage Treatment Plant/ Common Effluent Treatment
Plant for Commercial Complexes , not covered under the
HT IV- PWW & Sewage Treatment Plants or HT I Industry
341
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No
.
Existing Applicability
Proposed Applicability
o) Stand-alone Research and Development units not
covered under any other category;
Note:
3.
4.
HT III: HT – Railways/Metro/Monorail
A consumer in the HT II category requiring single-point
supply for the purpose of downstream consumption by
separately identifiable entities shall have to operate as a
Franchisee authorised as such by the Distribution
Licensee; or such downstream entities shall be required to
take separate individual connections and be charged
under the tariff category applicable to them.
HT III: HT – Railways/Metro/Monorail
Applicability:
This tariff is applicable to power supply at High Voltage for Railways,
Metro and Monorail, including Stations and Shops, Workshops,
Yards, etc.
Applicability:
This tariff is applicable to power supply at High Voltage for
Railways, Metro and Monorail, including Stations and Shops,
Workshops, Yards, etc.
HT IV: HT - Public Water Works and Sewage Treatment Plants
HT IV: HT - Public Water Works and Sewage Treatment
Plants
Applicability:
MSEDCL
January 20
342
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No
.
Existing Applicability
Proposed Applicability
This tariff category is applicable for electricity / power supply at High Applicability:
Voltage for pumping of water, purification of water and allied activities This tariff category is applicable for
relating to Public Water Supply Schemes and Sewage Treatment
Plants, provided they are owned or operated or managed by Local 1. Electricity / power supply at High Voltage for pumping of
water, purification of water and allied activities relating to
Self-Government Bodies (Gram Panchayats, PanchayatSamitis,
Public Water Supply Schemes and Sewage Treatment
ZillaParishads, Municipal Councils and Corporations, etc.), or by
Plants, provided they are owned or operated or managed
Maharashtra Jeevan Pradhikaran (MJP), Maharashtra Industries
Development Corporation (MIDC), Cantonment Boards and Housing
by Local Self-Government Bodies (Gram Panchayats,
Societies/complexes.
Panchayat Samitis, Zilla Parishads, Municipal Councils
and Corporations, etc.), or by Maharashtra Jeevan
All other Public Water Supply Schemes and Sewage Treatment
Pradhikaran (MJP), Maharashtra Industries Development
Plants (including allied activities) shall not be eligible under this tariff
Corporation (MIDC), Cantonment Boards.
category, but be billed at the tariff applicable to the HT I or HT II
All other Public Water Supply Schemes shall not be eligible
categories, as the case may be.
under this tariff category, but be billed at the tariff
applicable to the HT I or HT II categories, as the case may
be.
2. Electricity / power supply at High Voltage for Sewage
Treatment Plants and common effluent treatment plants,
set up by Local Self-Government Bodies (Gram
Panchayats, PanchayatSamitis, ZillaParishads, Municipal
Councils and Corporations, etc.), Maharashtra Industries
MSEDCL
January 20
343
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No
.
5.
Existing Applicability
Proposed Applicability
Development Corporation (MIDC), Industries Association
or consortium of industries., Residential Housing
societies/complexes.
HT V: HT – Agricultural
HTV (A) – Agriculture Pump sets
HT V: HT – Agricultural
HTV (A) – Agriculture Pump sets
Applicability:
This category shall be applicable for Electricity / Power Supply at High
Tension for pumping of water exclusively for the purpose of
Agriculture / cultivation of crops including HT Lift Irrigation Schemes
(LIS) irrespective of ownership.
It is also applicable for power supply for cane crushers and/or fodder
cutters for self-use for agricultural processing operations, but not for
operating a flour mill, oil mill or expeller in the same premises, either
operated by a separate motor or a change of belt drive.
HT V (B): HT – Agricultural Others
Applicability:
This category shall be applicable for Electricity / Power Supply
at High Tension for pumping of water exclusively for the
purpose of Agriculture / cultivation of crops including HT Lift
Irrigation Schemes (LIS) irrespective of ownership.
It is also applicable for power supply for cane crushers and/or
fodder cutters for self-use for agricultural processing
operations, but not for operating a flour mill, oil mill or expeller
in the same premises, either operated by a separate motor or
a change of belt drive.
HT V (B): HT – Agricultural Others
Applicability:
This tariff category is applicable for use of electricity / power supply Applicability:
at High Voltage for:
This tariff category is applicable for use of electricity / power
supply at High Voltage for:
MSEDCL
January 20
344
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No
.
Existing Applicability
Proposed Applicability
a) Pre-cooling plants and cold storage units for Agricultural Products
– processed or otherwise;
b) Poultries exclusively undertaking layer and broiler activities,
including Hatcheries;
c) High-Technology Agriculture (i.e. Tissue Culture, Green House,
Mushroom cultivation activities), provided the power supply is
exclusively utilized for purposes directly concerned with the crop
cultivation process, and not for any engineering or industrial
process;
d) Floriculture, Horticulture, Nurseries, Plantations, Aquaculture,
Sericulture, Cattle Breeding Farms, etc;
6.
HT VI: HT - Bulk Supply (Residential)
a. Pre-cooling plants and cold storage units for Agriculture
Products – processed or otherwise;
b. Poultries exclusively undertaking layer and broiler
activities, including Hatcheries;
c. High-Technology Agriculture (i.e. Tissue Culture, Green
House, Mushroom cultivation activities), provided the
power supply is exclusively utilized for purposes directly
concerned with the crop cultivation process, and not for
any engineering or industrial process;
d. Floriculture,
Horticulture,
Nurseries,
Plantations,
Aquaculture, Sericulture, Cattle Breeding Farms, etc;
HT VI: HT - Bulk Supply (Residential)
Applicability:
Entities supplied electricity at a single point at High Voltage for
residential purposes in accordance with the Electricity (Removal of
Difficulties) Eighth Order, 2005, in the following cases:
a) Co-operative Group Housing Society which owns the premises,
for making electricity available to the members of such Society
residing in the same premises for residential purposes; and
Applicability:
Entities supplied electricity at a single point at High Voltage for
residential purposes in accordance with the Electricity
(Removal of Difficulties) Eighth Order, 2005, in the following
cases:
a) Co-operative Group Housing Society which owns the
premises, for making electricity available to the members
MSEDCL
January 20
345
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No
.
Existing Applicability
Proposed Applicability
b) a person, for making electricity available to its employees residing
in the same premises for residential purposes.
7.
of such Society residing in the same premises for
residential purposes; and
b) a person, for making electricity available to its employees
residing in the same premises for residential purposes.
HT VIII: HT - Temporary Supply
HT VIII (A): HT - Temporary Supply Religious (TSR)
HT VIII: HT - Temporary Supply
HT VIII (A): HT - Temporary Supply Religious (TSR)
Applicability:
Applicability:
This tariff category is applicable for electricity supply at High Voltage,
for temporary use for a period not exceeding one year, for public
religious functions like Ganesh Utsav, Navaratri, Eid, Moharrum,
Ram Lila, Diwali, Christmas, Guru Nanak Jayanti, etc. or for areas
where community prayers are held; and for functions to
commemorate anniversaries of personalities and National or State
events for which Public Holidays have been declared, such as
Gandhi Jayanti, AmbedkarJayanti, Chhatrapati Shivaji Jayanti,
Republic Day, Independence Day, etc.
This tariff category is applicable for electricity supply at High
Voltage, for temporary use for a period not exceeding two year,
for public religious functions, like Ganesh Utsav, Navaratri, Eid,
Moharrum, Ram Lila, Diwali, Christmas, Guru Nanak Jayanti,
etc. or for areas where community prayers are held; and for
functions to commemorate anniversaries of personalities and
National or State events for which Public Holidays have been
declared, such as Gandhi Jayanti, AmbedkarJayanti,
Chhatrapati Shivaji Jayanti, Republic Day, Independence Day,
lighting for religious exhibitions & Gatherings Satsang,
HT VIII (B) – Temporary Supply Others (TSO)
Spiritual talks, Spiritual Book Exhibition) etc.
MSEDCL
January 20
346
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No
.
Existing Applicability
Proposed Applicability
HT VIII (B) – Temporary Supply Others (TSO)
Applicability:
This tariff category is also applicable for electricity supplied at High
Voltage for Temporary use for a period not exceeding one year for
a)
Construction of all types of structures/ infrastructure such as
buildings, bridges, fly-overs, dams, Power Stations, roads,
Aerodromes, tunnels for laying of pipelines for all purposes;
b)
Any construction or renovation activity in existing premises;
c)
Decorative lighting for exhibitions, circuses, film shootings,
marriages, etc.
Note:
Additional Fixed Charges of Rs.230 per 10 kW load or part thereof
above 10 kW load shall be payable.
8.
HT IX: HT Public Services
MSEDCL
Applicability:
This tariff category is also applicable for electricity supplied at
High Voltage for Temporary use for a period not exceeding
onetwo year for
a) Construction of all types of structures/ infrastructure
such as buildings, bridges, fly-overs, dams, Power
Stations, roads, Aerodromes, tunnels for laying of
pipelines for all purposes;
b) Any construction or renovation activity in existing
premises;
c) Decorative lighting for exhibitions other than religious
exhibitions covered under HT VIII (A), circuses, film
shootings, marriages, etc.
Note:
(i) Additional Fixed Charges of Rs.230 per 10 kW load or part
thereof above 10 kW load shall be payable;
HT IX: HT Public Services
January 20
347
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No
.
Existing Applicability
Proposed Applicability
HT IX (A): HT - Public Services - Government Educational HT IX (A): HT - Public Services - Government Educational
Institutes and Hospitals
Institutes and Hospitals
Applicability:
This tariff category is applicable for electricity supply at High Voltage
for Educational Institutions, such as Schools and Colleges; Health
Care facilities, such as Hospitals, Dispensaries, Clinics, Primary
Health Care Centres, Diagnostic Centres, Blood banks and
Pathology Laboratories; Libraries and public reading rooms - of the
State or Central Government, Local Self-Government bodies such as
Municipalities, ZillaParishads, PanchayatSamitis, Gram Panchayats,
etc;
It shall also be applicable for electricity used for Sports Clubs and
facilities / Health Clubs and facilities / Gymnasium / Swimming Pools
attached to such Educational Institutions / Health Care facilities,
provided that they are situated in the same premises and are meant
primarily for the students / faculty/ employees/ patients of such
Educational Institutions and Hospitals.
HT IX (B): Public Services – Others
Applicability:
This tariff category is applicable for electricity supply at High
Voltage for Educational Institutions, such as Schools and
Colleges; Health Care facilities, such as Hospitals,
Dispensaries, Clinics, Primary Health Care Centres,
Diagnostic Centres, Blood banks and Pathology Laboratories;
Libraries and public reading rooms - of the State or Central
Government, Local Self-Government bodies such as
Municipalities, ZillaParishads, PanchayatSamitis, Gram
Panchayats, etc;
It shall also be applicable for electricity used for Sports
Clubs,and facilities / Health Clubs, Hostels and facilities /
Gymnasium / Swimming Pools attached to such Educational
Institutions / Health Care facilities, provided that they are
situated in the same premises and are meant primarily for the
students / faculty/ employees/ patients of such Educational
Institutions and Hospitals.
Applicability:
MSEDCL
January 20
348
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No
.
Existing Applicability
Proposed Applicability
This tariff category is applicable for electricity supply at High Voltage HT IX (B): Public Services – Others
for
Applicability:
a)
Educational Institutions, such as Schools and Colleges; Health This tariff category is applicable for electricity supply at High
Care facilities, such as Hospitals, Dispensaries, Clinics, Voltage for
Primary Health Care Centres, Diagnostic Centres, Blood banks
and Pathology Laboratories; Libraries and public reading
a) Educational Institutions, such as Schools and Colleges;
rooms - other than those of the State or Central Government,
Health Care facilities, such as Hospitals, Dispensaries,
Local Self-Government bodies such as Municipalities,
Clinics, Primary Health Care Centres, Diagnostic
ZillaParishads, Panchayat Samities, Gram Panchayats, etc.
Centres, Blood banks and Pathology Laboratories;
b)
Sports Clubs and facilities / Health Clubs and facilities /
Libraries and public reading rooms - other than those
Gymnasium / Swimming Pools attached to such Educational
of the State or Central Government, Local SelfInstitutions / Health Care facilities, provided that they are
Government
bodies
such
as
Municipalities,
situated in the same premises and are meant primarily for their
ZillaParishads,
Panchayat
Samities,
Gram
students / faculty/ employees/ patients;
Panchayats, etc.
c)
all offices of Government and Municipal/ Local Authorities/
b) Sports Clubs, andfacilities/ Health Clubs, Hostels and
Local Self-Government bodies, such as Municipalities,
facilities / Gymnasium / Swimming Pools attached to
ZillaParishads, PanchayatSamitis, Gram Panchayats; Police
such Educational Institutions / Health Care facilities,
Stations and Police Chowkies; Post Offices; Armed
provided that they are situated in the same premises
Forces/Defence and Para-Military establishments;
and are meant primarily for their students / faculty/
d)
Service-oriented Spiritual Organisations;
employees/ patients;
MSEDCL
January 20
349
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No
.
Existing Applicability
e)
f)
g)
h)
9.
Proposed Applicability
State or Municipal/Local Authority Transport establishments,
including their Workshops;
Fire Service Stations; Jails, Prisons; Courts.
Airports
Ports and Jetties
HT (X): Electrical Vehicle (EV) Charging Stations
c) all offices of Government and Municipal/ Local
Authorities/ Local Self-Government bodies, such as
Municipalities,
ZillaParishads,
PanchayatSamitis,
Gram Panchayats; Police Stations and Police
Chowkies; Post Offices; Armed Forces/Defence and
Para-Military establishments; Administrative offices of
MSEDCL/MSETCL & MSPGCL;
d) Service-oriented Spiritual Organisations;
e) State or Municipal/Local Authority Transport
establishments, including their Workshops;
f) Water ATM (RO/UV/UF Water Purifier Plants) of Local
bodies;
g) Fire Service Stations; Jails, Prisons; Courts.
h) Airports
i) Ports and Jetties
HT (X): Electrical Vehicle (EV) Charging Stations
Applicability:
Applicability:
This Tariff category is applicable for Electric Vehicle Charging This Tariff category is applicable for Electric Vehicle Charging
Station.
Station.
MSEDCL
January 20
350
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No
.
Existing Applicability
Proposed Applicability
In case the consumer uses the electricity supply for charging his own In case the consumer uses the electricity supply for charging
electric vehicle at his premises, the tariff applicable shall be as per his own electric vehicle at his premises, the tariff applicable
the category of such premises.
shall be as per the category of such premises.
Electricity consumption for other facilities at Charging Station such as Electricity consumption for other facilities at Charging Station
restaurant, rest rooms, convenience stores, etc., shall be charged at such as restaurant, rest rooms, convenience stores, etc., shall
tariff applicable to Commercial Category.
be charged at tariff applicable to Commercial Category.
MSEDCL
January 20
351
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
16 DETAILS OF CAPEX SCHEMES
16.1 INFRA-II Scheme
16.1.1 Infrastructure Plan Part II scheme is formulated for enhancing and upgrading
the Infrastructure so as to enable MSEDCL to cater increasing demand for
releasing New connections under Residential, Commercial, Industrial and
Agriculture categories and Renovation/Modernization (R&M) works to be taken
up during the period 2013-14 to FY 2015-16. While formulating the scheme,
expected load Growth up to 2015-16 has been considered.
16.1.2 Infra Plan “Part II” Scheme is prepared keeping in view the following Objectives:

Releasing New Connections - R, C, I as well as to clear all the Agriculture
Paid Pending Connections and prospective demand.

Up-gradation of existing system


Meeting Load Growth
Providing reliable & quality supply

Reducing AT&C Loss

Reduction in DTC Failure Rates.
16.2 INFRA PART II Scheme in 7 Towns
16.2.1 As the Distribution losses are below 15% in Pune, Kolhapur, Panvel & Navi
Mumbai (16 divisions), Nashik, Sinnar and Ozar towns were excluded from the
R-APDRP Part-B works. To cope with the growing demand and to release the
new Residential, Commercial, Industrial and other connections upto 2015-16,
it is necessary to implement INFRA Part- II Scheme in these towns for
development of Infrastructure.
16.2.2 Scope and progress of works:
The tenders for Infra II were awarded from September 2013 to October 2015 in
phased manner.
MSEDCL
January 20
352
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Progress of Infra II & Infra Part II Scheme in 7 towns is as follows (as on
31.10.2019):
Freezed Completed
Sr. No.
Particulars
Unit
WIP
Scope
works
1
New Sub Stations + Switching
No.
512
512
0
Stations
2
Addl. Power Transformers
No.
213
213
0
3
Augmentation
of
Power
No.
327
327
0
Transformers
4
New
Distribution
No.
37040
37040
0
Transformers
5
Augmentation of Distribution
No.
14825
14825
0
Transformers
6
HT Line (O/H + U/G )
Km.
24439
24439
0
7
LT Line (O/H + U/G )
Km.
20729
20729
0
16.2.3 Physical works completed in FY 18-19 but capitalization is delayed due financial
closure of scheme.
16.3 Feeder Separation Scheme
16.3.1 For giving 24 x 7 power supply to villages (Gaothan) feeder segregation work
has been taken in past under 'Gaothan Feeder Separation Scheme' (GFSS).
Total 5398 No. of feeders have been separated under GFSS & Infra Plan
Schemes.
16.3.2 Benefits of the feeder separation Scheme are as below:
 There will be control on Ag. Consumption.

There will be reduction in distribution loss.

Energy audit of Ag. consumers will be correct resulting in proper Ag. Index.


The feeling of discrimination in non-Ag. consumers will cease.
The system will be strengthened.


The demand in peak hours will be regulated.
Feeder segregation will help in achieving 24x7 power for all non-Ag.
consumers covered by these feeders and all Ag. consumers will get better
regulated reliable power supply.
MSEDCL
January 20
353
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
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16.3.3 However, some of the feeders are yet not segregated and some of the villages
& habitations are not yet covered by the segregated feeders. These nonsegregated feeders are of mix and single phasing type. Out of these feeders,
segregation of 690 feeders is being carried out in 'Deendayal Upadhyay Gram
Jyoti Yojana'. Segregation of remaining 4330 Mix / Single Phasing feeders is
balance.
16.3.4 The proposal for estimated cost of Rs. 2665 Crores is prepared for segregation
of remaining Mix / Single Phasing feeders. MSEDCL has requested the GoM
for the grant of Rs. 2665 Crores for this project. Further, as per assurance of
Hon. MoS MoP, GoI, MSEDCL has requested Hon. MoP, GoI to provide funds
of atleast Rs. 1000 Crores for this Scheme.
16.3.5 In this connection, the GoI has instructed to review the progress of DDUGJY
and Saubhagya regularly so as to achieve the milestones and to get benefit of
additional grant as envisaged in the Schemes.
16.3.6 In the meantime, M/s. REC approached MSEDCL and showed readiness for
preparation of 'Detailed Project Report' (DPR) for the said feeder separation
work. Accordingly, MERC has appointed an Agency for survey and preparation
of DPRs.
16.3.7 Total projected cost of feeder separation for 2647 no. of feeders is approx. Rs.
2730 Cr. DPRs for 19 circles are prepared for Rs. 1314 Cr. Also, DPRs for
remaining 11 circles are under preparation with approx. cost of Rs. 1416 Cr.
16.3.8 The DPRs for 11 Circles as detailed below were submitted to MERC. The
MERC has accorded In-Principle approval for DPR amount of Rs. 535.19 Cr.
as detailed below:
Sr.
No.
Name of District
1
Buldhana
27
18.81
2
Ahmednagar
84
68.60
3
Chandrapur
65
81.97
MSEDCL
Proposed No. of feeders Amount
for separation
(Rs. Cr.)
January 20
354
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No.
Name of District
4
Nagpur
98
87.74
5
Jalgaon
101
69.34
6
Gondia
38
45.60
7
Bhandara
29
30.32
8
Baramati
139
103.47
9
Satara
22
22.01
10
Kolhapur
3
4.59
11
Sangli
3
2.74
609
535.19
Total
Proposed No. of feeders Amount
for separation
(Rs. Cr.)
16.3.9 Also, M/s REC Ltd. has sanctioned loan amounting to the tune of 80% of the
project cost for feeder separation work in 11 Circles as detailed above. The
tenderization process for execution above works is in progress.
Preparation and finalization of DPR’s are in progress for remaining District viz:
Osmanabad, Hingoli, Dhule, Yavatmal, Washim, Aurangabad, Jalna, Amravati,
Solapur, Parbhani, Beed, Latur, Wardha, Nashik (Nashik (U) + Malegaon
circle), Akola, Pune.
Considering the huge cost involved in the project, it would not be possible for
MSEDCL to raise such a large amount through loan.
In view of above, the request letter dtd. 08.08.2019 has been submitted to M/s
REC Ltd. for considering the feeder separation work as an extension of
DDUGJY and extend full grant of 60% as per DDUGJY Scheme guidelines.
16.4 R-APDRP Scheme
16.4.1 GOI has initiated a scheme named “R-APDRP” to focus on establishment of
baseline data and fixation of accountability and reduction of AT & C losses
through strengthening & upgradation of sub-transmission and distribution
network and adoption of Information Technology during XI Plan.
MSEDCL
January 20
355
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Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
16.4.2 R-APDRP scheme includes following:

Urban areas- Towns and cities with population of more than 30,000 are
covered under the scheme.

Project is taken up in Two parts Part 'A’ and Part 'B’,

Part A includes the projects for establishment of Base Line Data and IT
applications for energy Accounting /Auditing and IT Based Consumer
Service centres.

Part B includes regular distribution strengthening and augmentation projects
to reduce AT&C Losses upto 15%.
16.4.3 Funding Mechanism:
 Initially GOI will provide 100% Loan for Part A and 25% loan for Part B projects
on the terms decided by Ministry of Finance. The Loan of Part A is converted
into grant once establishment of the required system is achieved;
 The balance funds (75 %) for Part B projects shall be raised from financial
institutions. The entire loan from GoI is routed through financial institutions for
the respective schemes funded by them.
16.4.4 Conversion of loan into Grant

Part A: The loan shall be converted into grant once the establishment of the
required system is achieved and verified by the independent agencies. The
interest on the converted Loan shall be capitalized. No conversion to grant will
be made in case Part A is not completed within 5 years from the date of
sanctioning of the project/ till the period extended by PFC. PFC has extended
the period of completion of R-APDRP Part A till March -2017

Part B: Up to 50% loan of Part-B projects shall be converted into grant in five
equal tranches on achieving the 15% AT&C loss in the project area on a
sustainable basis for a period of five years. If the utility fails to achieve or sustain
the 15% AT&C loss target in a particular year, that year’s trench of conversion
of loan to grant will be reduced in proportion to the shortfall in achieving 15%
AT&C loss target from the starting AT&C loss figure. PFC has extended the RAPDRP Part B till March -18.
MSEDCL
January 20
356
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Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
16.4.5 Progress of works:
A) Achievements of R-APDRP Part A:
a) 128 Towns with population more than 30, 000 (Census 2001) selected
for Implementation of R-APDRP Part A.
b) Loan amounting to Rs 315 Crs for 128 towns is sanctioned by PFC on
19.03.2010. The sanctioned amount is revised to Rs 260.09 Crs on
30.01.2017.
c) All 128 towns Declared as go-Live as on Oct’14.
d) After declaration of Go live of towns the TPIA (M/s PWC Ltd) appointed
by PFC has started their work in April -2015. The verification is
completed. The reports submitted by TPIEA for successful completion
of the scheme is accepted by PFC in the month of Oct – 16.
e) The Expenditure of R-APDRP Part A is Rs 226 Crs.
f)
B) Achievements of R-APDRP Part B:
a) The Expenditure of RAPDRP Part B is Rs 2234.97 Crs
b) The achievements are as given below:
Sr. No
Activities
Unit
Scope
Achievement
1
New Sub-stations
Nos
135
135
2
Aug Of Power Transformers
Nos
29
29
3
Add of Power Transformers
Nos
35
35
4
New Distribution Transformers
Nos
5823
5823
HVDS
5
Aug of Dist. Transformer
Nos
3624
3624
C) All 120 Towns are declared as completed and financially closed.
16.5 SCADA Part A
16.5.1 SCADA is implemented in 8 towns of MSEDCL. The towns with population
more than 4 lakhs and Annual Input energy more than 350 MU are selected for
SCADA implementation amounting to Rs. 117 Crs. The eligible towns are
Amravati, Malegaon, Sangli, Solapur and Greater Mumbai for SCADA and
DMS, and Pune, Nashik and Kolhapur for Only substation SCADA.
16.5.2 The SCADA Part A Includes the following scope of work:
MSEDCL
January 20
357
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a)
b)
c)
d)
Establishment of SCADA/DMS control centre in eight specified towns.
Integration with IT system being implemented under R-APDRP Part-A
Establishment of Data Recovery Center at Nagpur
Supply, installation, integration and commissioning of RTUs at all
66/33/22/11kV S/S
e) FRTUs at locations of RMUs on 11kV Distribution networks etc.
f) SCADA/DMS system for control and supervision of 33/11kV S/S and 33KV &
11kV feeders
16.5.3 The Achievements of SCADA Part A are as below:
Sr. No
Activity
Scope
1
SCADA Control center
8
2
RTU
268
3
FRTU
1653
Installed
8
268
1653
a) All 8 towns are completed as on March 2018
b) The third party verification by the Agency appointed by PFC is completed and
the reports are accepted by PFC.
c) The Expenditure of SCADA (Part A) as on 30.09.2019 is Rs. 72 Crs.
16.6 SCADA Part B
16.6.1 PFC has sanctioned 8 towns for SCADA enabling works amounting to Rs 189
crs. The Towns sanctioned by PFC are Greater Mumbai, Amravati, Solapur,
Sangli, Malegaon, Pune, Nashik and Kolhapur.
16.6.2 The SCADA Part B Includes the following scope of work:
Installation of equipment required for automation such as Ring Main Units,
numerical Relays for the Protection of 11 KV feeders, Capacitors and incomers,
Automatic Voltage regulators, winding Temperature Indicator and Oil
Temperature Indicator for Power Transformers etc.
16.6.3 The Achievements of SCADA Part B are as below:
MSEDCL
January 20
358
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr No
1
2
3
Activity
Scope
1370
3808
403
RMU
Numerical Relay
WTI/OTI
Installed
1370
3310
403
16.6.4 The scheme is financially closed as on 31st March 2018
16.6.5 The Expenditure of SCADA (Part B) as on is Rs. 136 Crs
16.7 Integrated Power Development Scheme (IPDS-I)
16.7.1 Government of India has launched Integrated Power Development Scheme
(IPDS) for urban area (Statutory Towns) only. The existing scheme of RAPDRP is subsumed in this new IPDS scheme.
16.7.2 Objectives of IPDS:
 24x7 Hrs Power supply for consumers.

Strengthening of electrical distribution network.

Reduction of AT&C Losses.
16.7.3 Provision of funds:
 60% Grant Central Government.


10% Utility/ State Government
30% Loan from FIs/ Banks

Additional grant of 50% of loan component i.e. 15% will be released subject
to achievement of milestones.
16.7.4 The DPRs have been prepared as per the guidelines of IPDS and in
consultation with Local MP’s. Government of India has approved the Project
cost of Rs 2300.43 Crs for IPDS under MSEDCL on 16.03.2016. The works
under this scheme is being executed on Full Turnkey Contract basis. The
tenders of the same have been floated at HO and Zonal level.
16.7.5 Current Status of the scheme is provided below:
MSEDCL
January 20
359
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Activity
Total
New Substation (Nos.)
Power
Transformer
Augmentation (Nos.)
Additional Transformer (Nos.)
New DTC (Nos.)
Augmentation of DTC (Nos.)
HT + LT Line (KMs.)
122
Completed/
Commissioned
97
57
55
2
29
4871
3710
9885
26
3786
3381
5507
3
366
15
405
WIP
22
16.7.6 The works in 25 Circles have been completed
16.7.7 The R.I charges of Rs. 900 Crs have been considered for works of underground
cabling.
16.7.8 MERC has accorded in principle approval for IPDS scheme in MSEDCL
amounting to Rs 2300.43 Crs on dt 10/2/2016.
New approved schemes by Ministry of Power, Government of India under IPDS
16.7.9 IT Phase – II under IPDS
124 towns with population more than 15000 selected for implementation of IT
– Phase II. The works under the scheme include supply and installation of IT
Infra material at Towns, DC (Data Centre) and DR (Data recovery centre) up
gradation.
1) The sanctioned cost of the scheme is Rs 94.79 Crs against the DPR cost of Rs
134.56 Crs
2) The following works are included under the scheme

IT infra material in all 124 towns


GIS Mapping of HT lines and DTC
Installation of Feeder Meters , Boundary Meters and Meters to HT
consumers and modems at these locations
 Up gradation of DC ( Data Centre) and DR ( Data recovery centre)
3) Current status of the scheme
MSEDCL
January 20
360
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition


LOA for all the activities awarded and Work is in progress
IT Phase – II Scheme is targeted to be completed by January 2020
16.7.10
ERP (Enterprise Resource Planning) DPR
1) The sanctioned cost of the scheme is Rs 40.86 Crs
2) The works sanctioned are targeted to be completed by August 2020
16.7.11
Smart Meter DPR
1) 10 towns viz Kannad, Paithan, Sillod, Vaijapur, Anjangaon, Daryapur, Jalna,
Dahanu, Nalasopara and Kamptee are selected for implementation of smart
metering.
2) The scope includes installation of 4 Lakhs smart meters.
3) The sanctioned cost is Rs 80 Crs against the DPR cost of Rs 166.16 Crs
4) Tenderisation is in process
5) The works sanctioned under the scheme are targeted to be completed by
18.01.2021
16.8 Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY)
16.8.1 Government of India (GoI) has launched an ambitious program of “Deen Dayal
Upadhyay Gram Jyoti Yojana” (DDUGJY) in December 2014. The scheme is
being implemented 33 Districts (37 Circles) of Maharashtra State.
16.8.2 Objectives of DDUGJY scheme:


Giving regulated Power Supply to Ag. Consumers,
Continuous Power Supply (24X 7) for non-agriculture consumers


Strengthening and augmentation of Distribution networks.
Metering at various level for proper Energy accounting.


Reduction of AT & C Losses.
Subsuming RGGVY in DDUGJY and carry forward the approved outlay for
RGGVY to DDUGJY
16.8.3 The work completion period for the scheme is 1/ 1.5 years from the date of
issue of LoAs. Due to poor response to the tenders for DDUGJY & higher rates
quoted by the agencies, the process of awarding LoA was delayed. Hence there
MSEDCL
January 20
361
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
is deviation in projections which was already provided by this section.
16.8.4 Now LoAs for all the Districts/ Circle in Maharashtra State have been awarded
& work proposed under the scheme is in progress.
Progress of Deen Dayal Upadhyay Gram Jyoti Yojana is as follows (as on
31.10.2019):
Completed/
Activity
Total
WIP
Commissioned
New Substation (Nos.)
213
175
33
Augmentation (Nos.)
55
55
0
Additional Transformer (Nos.)
45
45
0
New DTC (Nos.)
9207
6217
532
Augmentation of DTC (Nos.)
348
292
0
HT + LT Line (KMs.)
21223
14705
1453
16.9 SAP ERP Project
16.9.1 Introduction
a) MSEDCL has implemented integrated SAP ERP (Enterprise Resource
Planning) solution for its core functions for improvement in operation
efficiencies with respect to the finance, project functions and integrating with
existing systems viz. Billing, HRMS etc.
b) The scope of work of this project primarily consists of:


Providing and installing ERP package and related software licenses;
Implementation of ERP, Project Management and control;

Integration with ancillary modules, R-APDRP Applications, SCADA under
development in R-APDRP Part-A & other systems;

Revamping/Upgrading of existing Billing System to n-tier architecture and
integrating with proposed ERP;

Enhancement and maintenance of ancillary modules;
 Development of custom application and its maintenance.
c) ERP project cost to provide ERP solution as above is Rs. 51.13 crores, which
includes support for 3 years after completion of the project.
d) The scope of LOA “Supply, Installation, Commissioning and Maintenance of
MSEDCL
January 20
362
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Hardware for ERP implementation solution in MSEDCL” primarily consist of:
 Procurement, Commissioning, Integration, Maintenance and Management
of New Servers, Laptops and other hardware and software in DC and DR.
 Comprehensive Warranty of Hardware and software for 5 years from date
of commissioning and Final acceptance.



Implementation of DC-DR replication
Two Factor Authentication for VPN users with Authentication manager at
DC and DR
Application Performance Monitoring tool

Up-gradation of existing mail server application
16.9.2 Objectives:
The existing Financial Accounting System was standalone system and needs
to be re-engineered to a latest platform. It was also required to integrate the
new system to all the existing system. Further, the existing billing system is
distributed and client server architecture based. It was required to re-engineer
this system to N tier architecture.
Further for the management of different projects running at MSEDCL like Infra,
RGGVY, GFSS, R-APDRP etc., an off the shelf project management tool was
required. This tool helps in managing and monitoring the projects. There was
need to keep track of all the materials in stock and accordingly manage the
procurement activity. This implementation helps MSEDCL in achieving
following objectives in mind:

Enable MSEDCL to improve operational and financial efficiencies;

Reduces the workload pressure and provides accurate, timely information
for taking appropriate business decisions;

Adopt best practices, standardization and automate many of the business
activities.
16.9.3 Benefits:

Provide real time, on-line information and MIS for fast, efficient decision
making at the highest levels;

Centralized Data storage and real-time availability of information;
MSEDCL
January 20
363
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition





No duplication of data at enterprise level;
Online workflows and approvals;
Plant Maintenance operates the overall maintenance business processes
and functions of MSEDCL. It helps to keep track of breakdown and
preventative maintenance activity of equipment;
FICO module enables to centrally track financial accounting data and crossfunctional integration with other SAP modules helps to generate financial
statement and balance sheet at ease;
IT solution for Project Execution and Management enables users and
managers to execute and monitor the projects effectively;

Material Management speeds up the procurement and material
management activities making the business run smoother with complete
time and cost efficiency;

Revamp the existing 2 tier billing system to ‘n’ tier architecture, this
help the billing system online and ensure faster access to MIS reporting.
The billing solution would be centralized to ensure lowest total cost of
ownership;
16.9.4 Scheme Approval



MERC scheme code: MSEDCL/FY11/21
MERC
In
Principle
Clearance
Reference
No.
MERC/CAPEX/2010/2011/02588 dated 31.03.2011
In Principal Approved Cost Rs in Crs : Rs. 91.00 Crores.
and
Dt:
16.10 DC/DR IT Infra Up-Gradation – I
16.10.1




Scope:
Upgradation of existing 3PAR SAN Storage space at both DC & DR and
procurement of SAN switch at both DC & DR
Upgradation of Processor & RAM of existing BL870 Servers at DC & DR
Upgradation cum Procurement of High Performance Servers
Supply & installation of Latest Oracle Ebiz Suite to Servers and Applications
and data migration of existing HRMS, Payroll, etc modules to new
environment (including migration of existing oracle database instances to
latest enterprise edition release) along with successful DC-DR replication.
MSEDCL
January 20
364
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Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
The successful integration of migrated modules as per pre-migration
scenario. Comprehensive Training of Oracle Ebiz Suite & migration
activities to MSEDCL staff.



16.10.2
Supply and Installation of Window Servers.
Up-gradation cum Procurement of SAP Hana Appliance & HANA Software
Licenses by 256GB with one-year support
Successful Integration of new & upgraded servers, storage and other
hardware with existing infrastructure.
Objective:

MSEDCL’s Data Center at Prakashganga, BKC, Mumbai hosts various
enterprise level applications like Website, Online Bill Payment, E-Tendering,
HRMS, Payroll, Data Warehouse, Mobile Apps, ERP etc. Similar
configuration exists at Disaster Recovery Center at Nagpur with continuous
replication of data of Data Centre via point to point leased lines.

Objective is to upgrade few of the IT Infrastructure components at Data
Center & Disaster Recovery Center to meet the current requirements of
MSEDCL.
16.10.3
Benefits
There is no direct tangible cost benefit, the up- gradation of existing
infrastructure is essential to run the existing critical applications smoothly. Also,
the proposed new solution will give the following benefits:



16.10.4

Strengthen the availability and responsiveness
of existing online
applications by having appropriate hardware & software resources.
Strengthen agility, scalability, multi-tenancy, governance of its IT
infrastructure and maintain these for a foreseeable future.
Utilization of the modem technologies evolved in Servers, Storage and
software to improve the scalability, availability, maintainability
&
performance of IT based systems.
Scheme Approval
MERC In Principle Clearance Reference No. and Dt : MERC/CAPEX/201718/3971 dt. 21.07.2017, Approved Cost Rs in Cr: Rs. 17.59 Crores.
MSEDCL
January 20
365
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Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
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16.11 DPDC/Non-Tribal
16.11.1
Release of residential, agriculture, street light, public water works
connections & infrastructure (H.T. line, L.T. line, DTC etc.) development are the
main works carried out under this plan.
16.11.2
As per Government Resolution No. Sankirna-2013/ Pra. Kra. 189/
Energy -5 Dt. 30.12.2013, funds under this plan are released as grant to
MSEDCL from the year 2013-14.
16.11.3
The GoM has sanctioned Outlay of Rs. 187.26 Crs for year 2017-18 &
Rs. 232.07 Crs for year 2018-19 under General Plan (Non-Tribal)
For FY 2017-18 and FY 2018-19 works carried out till Sep 19 under this plan is
as below:
FY 2017-18
FY 2018-19
Particulars
Target
Achievement Target
Achievement
Residential Connection
14860
10783
9102
5075
Funds Sanctioned (Rs.
Rs. 187.26 crs
Rs. 232.07
in crs)
Expenditure (Rs. in crs)
Rs. 182.32 crs.
Rs. 139.37
16.11.4
Projected Expenditure & physical target under General Plan for FY 1920 is as below:
Particulars
2019-20
Fund (Rs. In crs)
261.55
Agriculture Pump Set Connection
230
Residential Connection
10900
Physical
DTC
3100
Targets
HT Line
1600
LT Line
4000
MSEDCL
January 20
366
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
16.12 DPDC/Special Component Plan
16.12.1
Release of residential connections & Ag. connections to Scheduled
Caste & Nav-Buddha beneficiaries & release of street light connections in dalit
basti are the main works carried out under this plan.
16.12.2
As per Government Resolution No. Sankirna-2013/ Pra. Kra. 189/
Energy -5 Dt. 30.12.2013, funds under this plan are released as grant to
MSEDCL from the year 2013-14.
16.12.3
The GoM has sanctioned Outlay of Rs. 117.10 Crs. for FY 2017-18 and
Rs. 113.66 for FY 2018-19 under Special Component Plan and works carried
out till Sep 19 under this plan is as below-
Particulars
Special Action Plan
(FY 2017-18)
Target Achievement
Agriculture
Pump
3900
2253
Set Connection
Physical Residential
2941
2343
Targets Connection
Street
Light
3796
2921
electrification
Funds Sanctioned (Rs. in
Rs. 117.10 Cr.
Crs)
Expenditure (Rs. in Crs)
Rs. 116.52 Cr.
Special Action Plan
(FY 2018-19)
Target Achievement
2621
537
3809
1180
2401
1413
Rs. 113.66 Cr.
Rs. 56.42 Cr.
16.12.4
Projected Expenditure & physical target under General Plan for FY 1920 is as below:
Particulars
Fund (Rs. In crs)
Physical
Agriculture Pump Set Connection
MSEDCL
January 20
2019-20
134.47
3100
367
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Targets
Residential Connection
Dalit Basti Street Light
DTC
HT Line
LT Line
4500
2900
2800
1435
1300
16.13 DPDC/TSP+OTSP (District Wise)
16.13.1
This scheme is executed in area notified as Tribal Sub-Plan (TSP) area
as well as other than Tribal Sub Plan (OTSP) area. In this scheme, out of total
allocation, 85% allocation is utilized for Tribal beneficiary living in TSP area and
balance for Tribal beneficiary living in OTSP area.
16.13.2
The fund is received from GOM under DPDC (TSP + OTSP) Scheme as
a 100% grant. The fund sanctioned under this scheme should be obtained from
concern District Collector.
16.13.3
The works included under this scheme is mainly to release Ag.
connections, L&F Connection to tribal beneficiaries and to electrify unelectrified tribal Wadi / Pada.
16.13.4
The budget provision for FY 2017-18, for area under TSP is Rs. 91.85
Crs. & for OTSP is Rs. 11.95 Crs. The budget provision for FY 2018-19, for
area under TSP is Rs. 93.28 Crs. & for OTSP is Rs. 11.05 Crs The works to be
done under this scheme & progress of work upto Sep 2019 are as under:
TSP FY 2017-18
Description
Physical
Target
Ag.
pump
energisation
L&F connection
MSEDCL
Target
OTSP FY 2017-18
Achievement Target
Achievement
2904
1046
324
199
3076
2906
1059
983
January 20
368
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Wadi/Pada
Electrification
193
Sanctioned Outlay
Expenditure
16
Rs. 91.85 Cr.
Rs. 87.54 Cr.
Target
Ag.
pump
energisation
L&F connection
Wadi/Pada
Electrification
Sanctioned Outlay
Expenditure
16
Rs. 11.95 Cr.
Rs. 11.95 Cr.
TSP FY 2018-19
Description
Physical Target
160
OTSP FY 2018-19
Achievement Target
Achievement
423
82
160
13
2153
256
760
247
103
63
-
-
Rs. 93.28 Cr.
Rs. 35.55 Cr.
Rs. 11.05 Cr.
Rs. 4.08 Cr.
16.13.5
Projected Expenditure & physical target under TSP & OTSP for FY 1920 is as below:
2019-20
Particulars
TSP
OTSP
Fund (Rs. In crs)
Physical
Targets
MSEDCL
99.48
19.68
Agriculture
pump
energisation
Residential Connection
Wadi/Pada Electrification
500
190
2000
120
900
10
HT line
750
140
LT Line
1300
120
DTC
1100
250
January 20
369
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
16.14 Backlog Removal Scheme
16.14.1
The GOM is making provision of funds to the Mahavitaran Co. for the
removal of District wise Backlog of Ag pumps energisation declared by The
Backlog & Indicator Committee set up by Govt. of Maharashtra in March 1996
as per the Hon. Governor, Maharashtra State, directives issued since FY 200506 regarding removal of the Regional Imbalance of Agricultural Pump Sets.
Presently, in the five districts namely Thane, Raigad, Ratnagiri, Chandrapur
and Gadchiroli, the work of energisation of agricultural pumps is being carried
out through the Backlog Scheme.
16.14.2
The Target of 2500 nos. of Ag pumps energisation under Backlog
Scheme has been set for the year 2017-18 and for that the GoM has sanctioned
Rs. 39.30 Crs. under Backlog Scheme. Similarly for FY 2018-19, target of 2500
nos. of Ag pumps energisation under Backlog Scheme has been set and for
that the GoM has sanctioned Rs. 40 Crs. under Backlog Scheme. MSEDCL
has carried out work of electrification of 1330 nos. of Ag. Pumps & Expenditure
incurred is Rs. 65.07 Crs. up to Mar-2018 and work of electrification of 510 nos.
of Ag. Pumps & Expenditure incurred is Rs. 13.80 Crs. up to Mar-2019.
16.15 AG Special Package for Vidarbha & Marathwada
16.15.1
AG Special Package I:- As compared to the Rest of Maharashtra, there
was imbalance of Ag. Pump energisation in Vidarbha & Marathwada. To
remove the imbalance of Ag. Pump energisation in Vidarbha & Marathwada the
GoM made the provision of fund of Rs. 819 Cr. under Special Package for FY
2015-16 for energisation of 99054 nos. of Ag. paid pending as on March 2015
in Vidarbha & Marathwada. 95167 nos. of Ag. Pumps are energized during FY
2015-16 to FY 2018-19 under this scheme.
16.15.2
AG Special Package II:- For the FY 2016-17, the GoM made the
provision of fund of Rs. 916.20 Cr. under Special Package for energisation of
94462 nos. of Ag pumps. 79889 nos. of Ag. pumps energized during FY 201617 to FY 2018-19 under this scheme.
16.15.3
During FY 2017-18, under special package scheme, 27099 nos. of Ag.
MSEDCL
January 20
370
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
pumps energized. During FY 2018-19, under special package scheme 27340
nos. of Ag. pumps energized.
Particulars
Financial Achievement (Rs. In Cr.)
Physical Achievement (in Nos.)
2015-16
481.22
65900
2016-17
594.35
54717
2017-18
343.29
27099
2018-19
310.85
27340
16.16 Saubhagya Scheme
16.16.1
Govt. of India has launched ‘Pradhan Mantri Sahaj Bijli Har Ghar Yojana
“Saubhagya”, on September 25, 2017.
16.16.2
Objectives of Saubhagya Scheme:

Providing last mile connectivity and electricity connections to all unelectrified households in rural areas.

Providing Solar Photo Voltaic (SPV) based standalone systems for unelectrified
households
located
in
remote
and
inaccessible
villages/Habitations where Grid extension is not feasible or cost effective.

Providing last mile connectivity and electricity connections to all remaining
economically poor un-electrified households in urban areas.
16.16.3
Provision of Funds: 60% Grant Central Government.
10% Utility/ State Government
30% Loan from FIs/ Banks
 Additional grant (50% of loan component i.e. 5% for special category
states and 15% for other states) under the scheme will be released
subject to achievement of 100% household electrification of all willing
households by 31st December, 2018.
16.16.4
Sanctioned & Utilized Funds Details:

16.16.5
Total amount of Rs. 774.8 Crs. (Rs. 405.88 Crs. + Rs. 368.92 Crs.)
is sanctioned against the total DPR amount of Rs. 1945.212 Crs.
under Saubhagya Scheme for Maharashtra State.
Household Electrification as per Saubhagya Dashboard:
MSEDCL
January 20
371
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition

Maharashtra has completed the 100% electrification total 10,93,614
nos. of connections are released i.e. up to 27.12.2018, as per the
Saubhagya Dashboard. Fortnightly progress report (till 31th
December-2018) is submitted to REC/MoP.

As on 31.03.2019 15,17,922 households are electrified after
10.10.2017 and achieved 100% electrification in Maharashtra State.
16.17 Providing and Fixing of Energy Metering Arrangement At 33kv & 22kv
Incoming Feeders at 33/11kv Substations & 22kv Switching Stations.
16.17.1
In order to have proper energy accounting, energy metering is very
essential. Since at present at many locations it is observed that there is no
metering provided at incoming feeder to 33/11kV Substation and Switching
Stations.
16.17.2
In order to provide the metering to incoming feeders, the administrative
approval in the matter was granted as per Board Resolution no 1714 dt:
22.04.2019 for providing and fixing of Energy Metering arrangement to Incomer
feeders having DPR cost of 30.10 Crs.
16.17.3

The details of scheme is as follows:
Scope of Work: - Supply and fixing Metering arrangement at 897 nos of
Incoming feeders.


Approximate Cost: - Rs 30.10Crs.
Funding Arrangement: REC have approved the 80% of Approximate cost
i.e 24.08 Crs. vide ref no REC/MUM/MSEDCL/116-SI/322 dt:02.08.2019.
However, as per site requirement and due to change cost data the number of
metering locations have been modified to 765 nos from 897 nos as DPR for
30.10Crs was already approved by Board.
Hon. MERC have granted in-principle approval, in which it is mention that
MSEDCL shall carry out balance 132 nos of metering through internal funds
and necessary ARR shall be conveyed in MTR petition. The proposal for
carrying out these balance work by obtaining fund through loan from
MSEDCL
January 20
372
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
REC/internal fund. The approximate cost for the balance work will be about 810 Crs approx.
Status of Scheme:- Tendering work is under progress.
16.18 HVDS Scheme
16.18.1
Approval of HVDS scheme:
GoM and MSEDCL decided to release 224785 Ag paid pending connections as
on date 31.03.2018. GoM of Maharashtra vide GR dt. 05.05.2018 has approved
the scheme having a scheme cost of 5048.13 Crs. The regulatory authority viz.
Maharashtra State Electricity Regulatory Commission (MERC) has in-principle
approved the scheme.
16.18.2
Advantages of HVDS

Reliable and uninterrupted Power Supply
In the existing LVDS, due to lengthy LT lines and high current flowing
through it, there is issue of low voltage at consumer end. The low voltage is
causing frequent motor burnt out incidences. If HVDS system is
implemented, the current flowing through the lines and associated
equipment will be reduced by more than 25 times. This will result into
improvement in the voltage resulting into reduction in failure of equipment
like DTs, motors, breaking of conductors, etc. and hence substantial
reduction in interruption of electric supply. Better voltage and less
interruption will facilitate the reliability and quality of power supply to Ag.
consumers. Further, there will be increase in the life of equipment, saving
the maintenance cost of utility

Reduction in electrical accidents:
As the HT line is controlled by circuit breaker in the sub-station, the circuit
breaker will trip whenever line conductor snaps on the ground, avoiding the
electrical accidents due to live conductor.

Reduction in distribution losses:
As mentioned above, the current flowing through HT line in HVDS will
reduce by more than 25 times in LVDS will result into reduction in the
distribution losses. Further, in HVDS, theft of energy by hooking the lines,
.
MSEDCL
January 20
373
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
as frequently observed in LVDS will be eliminated. This will result into further
reduction in distribution losses.

Reduction in DT fail:
In HVDS, there will be only one or two Ag. consumers on one DT. Hence,
the consumer will feel ownership of the DT, will take responsibility and will
not allow any unauthorized connection on the DT. This will avoid
overloading of DTs and hence, there will be substantial reduction in DT
failure rate due to overloading of DTs, as observed in LVDS. Further, in the
event of failure of DT, only one or two consumers will be affected as against
15-20 consumers in existing LVDS.
Thus, it can be seen that by implementing HVDS, reliability and quality of
power supply to Ag. Consumers in the state will be improved to great extent,
thereby securing the stable energy supply and improving the efficiency of
Ag. production as well as living standard of rural population in the state.
16.18.3
Tenderization

Standard Bidding Documents (SBD) is prepared by HO for full turnkey and
partial turnkey tenders.

In case of full turnkey tenders circle wise tenders are floated by concerned
chief engineers and in case of partial turnkey sub division wise and section
wise tenders are floated by concerned circle office.

E-Tendering process is adopted for all tenders.
16.18.4
Progress (As on 31 October,2019)
No. of AG Paid
Pending Connections
150399
DTC Commissioned
Connections released
31243
31030
16.19 High Loss Feeder (HLF) Scheme
16.19.1
MSEDCL is implementing High Loss Feeder (HLF) scheme to bring
down distribution losses in 259 high loss feeders (more than 50% losses). In
MSEDCL
January 20
374
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
the 1st Phase 185 feeders are chosen to be taken up in Financial Year 201819, 2019-20 with total capital cost of Rs 316.22 Crores to bring down distribution
losses in 185 high loss feeders (more than 50% losses) under statutory towns.
16.19.2
The objectives of the scheme are:

Introduce HVDS (High Voltage Distribution System) for reducing HT: LT
ratio and providing AB (Aerial Bunched) cable to prevent theft and pilferage
of electricity by hooking.

To shift energy meters from consumers premises and providing multimeter
boxes to outside to prevent tampering of energy meters.
Replacement of faulty energy meters.


To replace old, corroded and deteriorated LT conductor and providing AB
switches and wedge connectors to reduce power supply interruptions and
prevent accidents.
16.19.3
The funds for execution of the project are being arranged by availing
loan from financial institutions. MERC has accorded in-principle approval to the
scheme.
16.19.4
The following benefits are envisaged from the scheme:

Increase in revenue and reduction in losses.


Reduction of power supply interruptions and accidents.
Improvement in reliability of power supply due to introduction of HVDS.

Meeting Universal Supply Obligation.
The turnkey tenders for execution of project are floated and work is in progress.
Progress of High Loss Feeder Scheme
Sr
No.
1
2
3
4
Description
Unit
Scope
Completed
Installation /Replacement of Meters
HVDS (New DTC)
Conversion of LT Line to HT Line
Provision of AB cable
Nos.
Nos.
Kms.
Kms.
208868
11234
296.15
3672.86
15991
77
0.24
90.4
MSEDCL
January 20
375
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Shifting of meters from Inside to
Outside consumers premises
Installation of 1 Ph/ multi meter/
service box boxes
5
6
Nos.
276996
4549
Nos.
20630
6335
16.20 System Strengthening in Metropolitan Region (SSMR Scheme)
16.20.1
MSEDCL is implementing System Strengthening in Metropolitan Region
(SSMR) -scheme in Financial Year 2018-19, 2019-20 & 2020-21 with total
capital cost of Rs 438 Crores to strengthen existing distribution network and
reduce power supply interruptions in high revenue pocket areas in Mumbai &
Pune Metropolitan Region consisting of Bhandup, Kalyan & Pune Zones.
16.20.2

The objectives of the scheme are:
Strengthening & Augmentation of existing distribution network.

To reduce power supply interruptions in High Revenue pocket areas of
Mumbai & Pune Metropolitan Regions.

Replacement of existing feeder pillars with RMUs and providing RMUs at
multiple locations for easier load diversion, fault isolation & minimizing
interruption area.

Laying of additional link lines for conversion of existing Radial network to
Ring Mains.
To replace old, corroded and deteriorated aging infrastructure like Electric
Poles, Feeder Pillars, Conductors, etc to reduce frequent power supply
interruptions.

16.20.3
The funds for execution of the project are being arranged by availing
loan from financial institutions. MERC has accorded in-principle approval to the
scheme vide letter No. MERC/CAPEX/2019-20/9170/, Date: 22-10-2019.
16.20.4
The following benefits are envisaged from the scheme:


24x7 reliable power supply to consumers in high revenue pocket areas.
Reduction of power supply interruptions and breakdowns.

Reducing overloading of existing network and meeting load of prospective
consumers.
MSEDCL
January 20
376
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition

Meeting Universal Supply Obligation.
16.20.5
The full turnkey tenders for execution of project are floated and work is
in progress.
Sr No. Description
Unit
Scope
Completed
1
Installation /Replacement of R.M.U
Nos.
636
90
2
Augmentation/ conversion of Lines
Kms.
733.43
4
3
New Lines
Kms.
836.52
21.48
4
Replacement of Feeder Pillars
Nos.
814
717
5
Replacement of Poles
Nos.
3129
600
6
Replacement of DB
Nos.
95
0
Provision/ Replacement of isolators/
7
Nos.
361
25
AB switches/VCB
8
Replacement of Line accessories
Lot
8605
1569
9
R&M of DTC
Lot
793
53
Installation of multi meter/ service
10
Nos.
1847
0
box boxes
11
Others (R&M)- Guarding, etc
Lot
8085.5
6
DTC
New/
12
Nos.
374
8
Augmentation/Conversion
13
Substation
a
Augmentation of Power Transformer
Nos.
10
0
b
Renovation of Existing Substation
Lot
25
0
Establishment of New Substation /
c
Nos.
18
0
Switching station
16.21 GIS Survey
16.21.1
MSEDCL is an electricity distribution company having vast network of
electrical assets spread over a large geographical area. A convenient and
powerful way to collect, organizes, maintain and manage this physical asset
data and display it on a geographic map (Geospatial Data) is through
geographic information system (GIS).
16.21.2
MSEDCL has been requested by Ministry of Communications & IT (Govt.
MSEDCL
January 20
377
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
of India) to submit Geo-coordinate data (Latitude and Longitude) of existing
poles in LT and HT network of entire distribution utility area; so that laying of
Optic Fiber under National Optic Fiber Network (NOFN) project can be taken
up. If enterprise-wide GIS data is available then such types of GIS information
can be easily provided for large scale National/State wide initiatives.
16.21.3
Scope

Under R-APDRP part ‘A’ Project, GIS Survey, Asset Mapping & Consumer
Indexing of 128 R-APDRP towns was undertaken and a comprehensive GIS
system has been established for R-APDRP areas. Total 755 nos. of
Substations; 4143 nos. of Feeders; 65807 nos. of DTC; 9043846 LT
Consumers and 8299 HT consumers are currently mapped in the GIS
system. The GIS database is linked with other R-APDRP modules and is
being used to fulfill various MSEDCL business requirements like New
Connection, Technical feasibility, estimation, Customer Care, Energy Audit,
etc.

However, MSEDCL has not been able to utilize the full potential of the GIS
system due to non-coverage of Non-APDRP Network in the GIS System.
The location data of these non-covered network assets can be collected
through manual survey by using newly developed MSEDCL Mobile App on
GPS based Smartphone. In view of above, Competent Authority directed to
get the Network Survey conducted using MSEDCL Mobile apps.
16.21.4
Vide Board Resolution no. 1027 dtd. 22-Sep-2017 Board approved GIS
survey of entire MSEDCL HT Electric Network (approx. 3,22,788 Ckt Kms) and
AG Consumers (approx. 40 lakh) with an estimate 17.51 Lakhs (excl. Taxes).
16.21.5
Total 6982.14 ckt kms of HT Lines (2.16 % of Total HT Lines) with total
estimate of expenditure of Rs. 14.5 Lakh is considered under IPDS scheme
where 60% grant will be applicable.
16.21.6
Benefits
Following are the important usages of Enterprise wide GIS for Distribution
Utility:
a. Distribution Network Planning & augmentation
MSEDCL
January 20
378
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
b.
c.
d.
e.
f.
g.
h.
i.
VR Calculation/ Technical Feasibility
Distribution Network Load flow Analysis
Simulate Load Shifting Scenarios
Base for implementing Outage Management System
AT&C loss calculation for Consumers mapped in GIS
DTC Load profile generation.
Ready geo-coordinate data of Poles for Govt.
NOFN(National Optic Fiber Network)
Smart Grid & SCADA readiness.
Projects
like
16.21.7
Scheme Approval
(a) MERC approved the total estimate of Rs. 31.48 Crs for Enterprise GIS survey
of MSEDCL HT Electric Network and AG Consumers.
(b) Vide Letter no. MERC/CAPEX/2018-19/045 dtd. 06-Feb-2019 MERC approved
in principle clearance for DPR of MSEDCL for Survey and Asset mapping of 12
Zones of MSEDCL Electrical Network for Rs.14.43 Crs
(c) Vide Letter no. MERC/CAPEX/2018-19/1112 dtd. 23-Jul-2018 MERC approved
in principle clearance for DPR of MSEDCL for Survey and Asset mapping of 4
Zones of MSEDCL Electrical Network for Rs.16.08 Crs
16.22 Procurement of Modems For AMR
16.22.1
Scope:
Supply, installation & Commissioning of modems:
The agency has to supply, install & commission modems at various HT meters
& feeder meters.
Integration of modems with MSEDCL MDAS:
Modems installed are configured in MSEDCL MDAS & meter data downloaded
through modem is available in MSEDCL MDAS. Meter data such as billing
parameters, event information and load survey data is downloaded through
modem.
16.22.2
Objective:
To achieve automatic meter reading (AMR) of all HT consumer meters & feeder
meters avoiding any manual intervention.
MSEDCL
January 20
379
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
16.22.3
Benefits:


100% Accuracy of readings.
No need to visit the consumer premise carrying Meter Reading Instrument
(MRI) to take meter readings.

Readings downloaded through modem can be seen online on MSEDCL
MDAS.
16.22.4

Estimated Project cost:
The total estimated cost for the project is Rs.8.34 Cr.
16.23 Network Bandwidth Service Providers for AMR & Other Projects (NBSP
UMBRELLA)
16.23.1

Objectives & Scope:
Previously, various each implementing agency implementing Automated
Meter Reading (AMR) brought their own Network Bandwidth Service
Providers (NBSP) with whom it has tripartite agreement with MSEDCL.

One of the main reason behind modem reading failure (inactive cases) was
low or no network connectivity of that specific NBSP. However, there is
general observation that in areas where NBSP lacks presence of good
cellular network for AMR purpose, other NBSP has strong presence in that
area.

In this scenario, MSEDCL introduced NBSP umbrella scheme where
various Network Bandwidth Service Providers viz. M/s Vodafone Idea Ltd.,
M/s Bharti Airtel Ltd. & M/s BSNL are engaged for providing SIM based
services as per agreed common rate and SIMs of different NBSP wise are
requisitioned by field offices as per their requirements and network
connectivity status which are dispatched centrally.

Currently, MSEDCL is in process of awarding fresh LOAs to M/s Vodafone,
M/s Airtel and M/s Reliance Jio for AMR & Other Projects (NBSP Umbrella)
for a period of 3 years for all existing & new SIM cards along with backhaul
leased lines, limited up to Rs.15.19 Crs for estimated SIM quantity of 1.85
MSEDCL
January 20
380
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition

Lakhs.
Expenditure towards SIM services should be considered as Capital
Expenditure required for DSM implementation apart from other expenditure
required for DSM & pass through in the ARR
16.24 Scheme for East Vidharbha (Shet-tale):
16.24.1
Objectives:
1) Providing electricity connections to paid pending Ag consumers and
prospective Ag pumps on shet-tale constructed under 'Jalayukta Shiwar
Scheme' of GoM so that farmers will be facilitate to use water in Shet tale during
draught period.
2) Providing quality of power supply to Ag-consumers by strengthening of existing
electrical networks & adding new infrastructure.
3) Enhancement in living standards of farmers by increasing Agriculture
Production.
16.24.2
Funding:
Estimated scheme cost works out to be Rs. 749.72 Crs. Out of which GoM has
disbursed the grant of Rs. 350 Crs only.
16.25.3
Scope of Work
(a) SI work such as Substation, HT line, LT line & DTC etc
New Substation
- 11 Nos
Addl. Power Transformer
- 07 Nos
Aug. of Power Transformer
- 14 Nos
HT Line
- 4320 Ckt-Km ,
LT Line
- 1454 Ckt-Km.,
Addl. DTC
- 1129 Nos
(b) R&M work such as Replacement of Distribution Box, Cable, Breakers & Reearthing of DT etc.
(c) Providing Ag connections to farmers in East Vidarbha Region,
Ag Connection
- 27000 Nos
HT Line
- 135 Ckt-Km ,
LT Line
- 396.9 Ckt-Km.
MSEDCL
January 20
381
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
DTC
- 270 Nos.
16.24.3
Approach
(a) Remote and Naxlite prone five districts of east Vidarbh are identified by GoM.
(b) Beneficiaries are identified according to no. of Ag paid pending as on March2016 and prospective Ag pumps on Shet-Tale.
(c) Required infrastructure and funds for electrification of beneficiaries are
estimated.
(d) GoM .has sanctioned the funds for Strengthening, Renovation & Modernisation
of existing electrical network and for electrification of beneficiaries.
(e) Accordingly, tenders are floated at Circle level and work is carried out for the
electrification of beneficiaries in the scheme.
16.25 Energy Command & Control Center
16.25.1
Overview
Globally the power sector is witnessing key changes in terms of shift of focus
towards green energy and sustainable growth and the smart grids evolving by
integrating end-to-end, advanced communications infrastructure and
information systems into the electric power system. The objective of the Smart
Grid projects are to use advancements of information and communication
technology to make the power grid more efficient, reliable, secure and resilient
whilst avoiding costly investments in new centralized power generation
capacity. One of the main features of the Intelligent Grid is an increased level
of observation and control of a complex power system to facilitate distributed
and renewable energy generation. This can only be achieved by an increased
level of information sharing between the individual components and subsystems of the power system. Standardization plays a key role in providing the
ability of information sharing which will be required to enable the development
of new applications. An information & analytics driven grid can provide
consumers near real-time information on their energy use, support pricing that
reflects changes in supply and demand and enable the use of smart appliances
and devices to help consumers exercise choices in terms of usage of energy.
Utilities can better manage the grid in terms of increased visibility of the
network, improved billing and realization efficiency, increased availability of grid
and access of power to rural areas.
MSEDCL
January 20
382
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
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16.25.2
Intent of the Project:
Intent of the project is to select a Implementation Service Provider, ISP that can
design the solution for the proposed Energy Command and Control Centre,
implement the same along with its partners (if any) in a time bound manner and
evaluate the outcome of the Project. The ISP will have sound knowledge of
SCADA systems / IT applications / Communication Systems / Smart Meters
and Power System. ISP will also provide the facility management for 5 years.
16.25.3
Benefits
The proposed Energy Command and Control Centre (ECCC) will enable
measurable improvements including:
 Power Portfolio Management


Reliability and Performance Indices
Network System behaviour and response to disturbances


Energy Analytics – reduction in losses
Optimization of asset utilization and operating efficiency of the electric
power system

Consumer satisfaction
16.25.4
Expected Functionalities
a. The ECCC will aggregate various data feeds from systems & sensors
and further process information out of these data feeds to provide
interface /dashboards for generating alert and notifications in real time.
b. The ECCC would also equip MSEDCL to respond quickly and effectively
to emergency or disaster situation in distribution network through
Standard Operating Procedures (SOPs) and step-by-step instructions.
The ECCC shall support and strengthen coordination in response to
incidents/emergencies/crisis situations.
c. Single Dashboard for MSEDCL for AMI, SCADA, Substation Monitoring
System, SLDC system, GIS etc visualized real time on geographical map
of distribution network. This dashboard can be accessed via web
application as well as mobile app. The various information that may be
accessed from the system but not limited to are as below:
i. Visual alerts generated by other sub-systems that is part of the
MSEDCL
January 20
383
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Provisional True Up For FY 2019-20 and
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overall distribution operations systems e.g. SCADA, AMI etc.
ii. Information about AMI system performance
iii. Access information from Substation Monitoring System
iv. Integration with Load Dispatch Centres
v. Demand (Load) forecasting
vi. Power portfolio management
d. Take action based on events generated by any Distribution operation
systems.
e. The system shall provide reporting & audit trail functionalities to track all
the information and monitor operator interactions with the system and to
impart necessary training to the users.
16.25.5
Project status:
Tender with an approved estimate Rs. 20.55 Crs is floated on MSEDCL
eTender Portal.
16.26 National Cyclone Risk Mitigation Project

NCRMP is a Government of India Project funded by World Bank.

Relief & Rehabilitation (R&R) Department, GOM is the State Project
Implementing Unit (SPIU) for Maharashtra. NCRMP unit is set up under
R&R Department
World Bank is providing Rs. 200 Crores grant for implementation of this
project.


Government of Maharashtra is the State Project Implementing Agency
(SPIU).

This project will be implemented under MSEDCL supervision.
16.26.1
Objective:

To reduce the vulnerability of coastal communities across India to cyclones
and other hydro-meteorological hazards.

NCRMP is to mitigate the effects of cyclone & other hazards in coastal
areas. Conversion of Overhead network to Underground
16.26.2
Scope of work:
MSEDCL
January 20
384
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
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


22 kV GIS Switching substation at Alibag
33kV, 22kV, 11kV Network conversion of overhead line to underground.
LT Network conversion to underground

Installation of New/Augmentation of Distribution Transformer
Details of Project and Cities where the project is being implemented.
Description
Alibag
Ratnagiri
Saatpati
Tender Amount
Rs. 80 Cr.
Rs. 96 Cr.
Rs. 16 Cr.
Tender floating date
30.07.2018
30.01.2019
07.02.2019
Contractor Name
M/s. Leena Powertech Engineers Pvt. Ltd.
LoA Date
Contract Value
13.06.2019
06.09.2019
06.09.2019
Rs. 89.53 Cr.
Rs. 96.95 Cr.
Rs. 17.28 Cr.
1.5 Year
1.5 Year
1 Year
Duration of Contract
Project Area Details
Description
Alibag
Ratnagiri
Saatpati
Total area Coverage
7.9 sq km
50 sq km
2.86 sq km
Total No. of consumer
15548 Nos
37336 Nos
6399 Nos
Total
2011)
20743 Nos
76239 Nos
17032 Nos
22 kv HT Network U/G Cable
41.48 km
---
---
33 kv HT Network U/G Cable
----
6.37 km
---
11 kv HT Network U/G Cable
----
42.34 km
14.2 km
136.84 km
66.58 km
20.66 km
2.9 km
---
----
---
233 Nos
34 Nos
population
(census
LT Network U/G Cable
AB cable
Distribution Transformer
16.27 Mukhyamantri Sour Krishi Vahini Yojana (MSKVY)
16.27.1
MSEDCL is implementing Mukhyamantri Sour Krishi Vahini Yojana
MSEDCL
January 20
385
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(MSKVY) announced by Govt. of Maharashtra vide G.R. 14.6.2017 by installing
decentralized Grid connected solar power projects for giving day time power to
farmers.
16.27.2
Vide GoM GR dated 17.03.2018 nominated MSEDCL as an
implementing agency for the scheme. MSEDCL is implementing scheme by
developing 0.3 to 10 MW solar projects in 5 KM area of AG dominated substations and directly connecting at 11 kV bus of AG dominated substation
through private solar projects developers, EESL & MSPGCL.
16.27.3
The scheme has multiple benefits which are as under,


Farmer will get good quality day time power supply.
Reduced peak energy demand



Increase in consumer satisfaction.
Saving the transmission & distribution network losses due generation at
distribution point.
Environmentally benign.

Reduce MSEDCL’s total power purchase cost.

To fulfill the enormous RPO Targets.
16.27.4
Solar Projects Developed by EESL:
i) The Scheme is being implemented in two phases viz. Phase-I of 200 MW
and Phase-II of 300 MW through MoU route with Tariff of Rs. 3.00 per unit
and projects are developed on spare substation or Govt. Land. The PPAs
for these two projects are executed on 20.01.2018 & 30.10.2019
respectively.
ii) Phase-I (200 MW)
a) MSEDCL will make available spare substation land or Govt. Land for these
decentralized solar projects.
b) M/s EESL will execute these projects of 0.3 MW to 10 MW capacity on the
land made available by MSEDCL.
c) MERC has given in principal approval for this scheme vide Order dated
29.01.2019.
MSEDCL
January 20
386
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Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
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d) The civil & evacuation work for these projects will be carried out by MSEDCL
at its own cost and reimbursement will be given by Govt. of Maharashtra
through Green cess fund.
e) Phase-I of the project is under implementation and as on date total 64 nos
of sites are commissioned having total capacity of 56.97 MW.
f) These projects are to be executed within 13 months from handing over of
sites by MSEDCL.
g) All these projects are to be completed by March-2021.
iii) Phase-II (300 MW)
a) PPAs are signed and 0.3 to 10 MW projects are to be executed on
Substation, Gram panchayat & Govt. lands.
b) Site identification & survey is being carried out by M/s EESL.
c) These projects are to be executed within 13 months from handing over of
sites by MSEDCL.
d) Target for completion of project is March 2021.
16.27.5
Solar Projects developed through Private Developers:
a) MSEDCL has carried out competitive bidding for 2 to 10 MW solar projects
in 5 KM area of AG dominated sub-stations connected at 11 kV Bus of the
Sub Station for which land procurement, evacuation expenses etc. will be
done by Project Developer.
b) Total 235 MW projects capacity is contracted at tariff of Rs. 3.15 per unit.
c) Target for completion of project is in FY 19-20.
d) Further, Tendering is being done for developing such projects near AG
dominated sub-stations. However, there is no response from developers.
e) MERC has disallowed tariff of Rs. 3.29 per unit for 1180 MW solar projects.
16.27.6
Solar Projects Developed by M/s. MSPGCL:
a) MSPGCL will execute PPA with the grid connected solar projects developer
and PSA with MSEDCL.
b) MSEDCL will purchase the power from MSPGCL at the tariff rate decided
through competitive bidding and approved by MERC.
c) Total 600 MW Solar projects under MSKVY are planned to be executed by
MSPGCL.
MSEDCL
January 20
387
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
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16.27.7
MSEDCL is further planning to create land bank on lease rent near AG
dominated substation within 5 KM range and increase tariff for these
decentralized project to add decentralized solar capacity aggressively.
MSEDCL is targeting to develop around 3500 MW decentralized solar project
in next 5 years.
16.28 Mukhyamantri Saur Krushi Pump Yojana (MSKPY)
16.28.1
Under ATAL AG Solar Scheme, MSEDCL has installed 5662 Nos. of AG
Solar pumps.
16.28.2
In order to facilitate day time irrigation to the farmers & to promote use
of renewable source of energy, the Govt. of Maharashtra vide G.R. No. Solar
Project-2018/ C. No. 401/ energy-7 Dt. 15.11.2018 declared ‘Mukhyamantri
Saur Krushi Pump Yojana’ (MSKPY) to install 1,00,000 Off-Grid 3 HP & 5 HP
Solar Photovoltaic Water Pumping Systems in phase manner. After
commencement of scheme, each phase should be completed in 18 month.
Target for Phase-I is 25000 solar pumps. MSEDCL is implementing agency for
this scheme.
16.28.3
Solar Agriculture pump will be installed in phase wise manner as under:
Phase I (2018-19) – 25,000 Pumps
Phase II (2019-20) – 50,000 Pumps
Phase III (2020-21) – 25,000 Pumps
16.28.4


Benefits to Farmer –

Day time Solar power to agriculture pump
No Electrical network hence no interruption due to breakdown/ transformer
failure etc.
No electricity bills to farmers

Will help to increase crop yield and farmers income
16.28.5

Benefits to MSEDCL –
No maintenance cost
MSEDCL
January 20
388
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Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
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

Environment friendly operation
Minimize cross subsidy burden on Commercial & Industrial electricity
consumers

Helpful to meet out renewable power obligation (RPO)
Benefits to Government –
16.28.6

Bringing more farm land under irrigation

Decouple irrigation sector from power subsidy burden
Category wise Beneficiary Share & Government Share –
Category wise allocation of Pumps –
16.28.7
16.28.8
Govt. Share
3 HP
Beneficiary
Share
5 HP
Beneficiary
Share
10%
90%
Rs. 16560/-
Rs. 24710/-
5%
95%
Rs. 8280/-
Rs. 12355/-
Beneficiary
Share
General
S.C/ST
Category
As per G.R., Category wise & Capacity wise allotted quantity is as under:
Phase
Gen
3 HP
SC
ST
Gen
5 HP
SC
ST
Gen
7.5 HP
SC
ST
Phase-I
17033
2364
1869
2678
589
467
-
-
-
Phase-II & III
41396
6200
4904
11828
1772
1400
5914
886
700
Total
58429
8564
6773
14506
2361
1867
5914
886
700
16.28.9
Implementation of Phase-I –

Letter of Empanelment (LoE) are issued to vendors on dtd. 07.03.2019 for
installation of 25,000 Solar AG pump of 3 HP & 5 HP capacity.

Revenue Division wise Capacity wise vendors are empanelled.
16.28.10

Implementation of Phase-II & III –
The Govt. of Maharashtra vide G.R. No. Solar Project-2019/ C. No. 159/
energy-7 Dt. 11.09.2019 declared to implement Mukhyamantri Saur Krushi
MSEDCL
January 20
389
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Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Pump Yojana (MSKPY) Phase-II & III together to install 75,000 Off-Grid 3
HP, 5 HP & 7.5 HP Solar Photovoltaic Water Pumping Systems in the ratio
70:20:10.

Letter of Empanelment (LoE) are issued to vendors on dtd. 18.09.2019 for
installation of 67,500 Nos. of solar pumps of 3 HP & 5 HP capacity.


Revenue Division wise vendors are empanelled.
In addition to the approved MSKPY, MSEDCL is planning to install 67500
Solar Pumps per year from FY 2020-21. The proposal for the same will be
submitted to the GoM.
MSEDCL
January 20
390
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
17 DETAILS OF OPEX SCHEMES
17.1 Customer Care Center
17.1.1 Objective:
The purpose of setting up the CENTRALISED CUSTOMER CARE CENTER is
to improve the supply /billing related complaint handling processes of MSEDCL
and enhance the customer servicing capabilities of MSEDCL. Centralized
Customer Care Centers (CCCC) with single window operation are equipped
with latest technology & multi skilled customer service representatives. CCCC
take the complaints and feedback through Telephone calls, e-mail, etc and
each communication are answered and forwarded to concerned office. The one
point contact service relieves the customer from the inconvenience of
identifying the concerned offices, visiting or contacting offices to solve their
grievances. CCCC are manned by trained and polite personnel, who are
sensitive to customer needs.
17.1.2 Scope:
To improve Customer Care Services, MSEDCL has outsourced the entire CCC
Operations (incl. Manpower, Infra, Links, etc) on turnkey basis to a professional
large scale BPO company. Their brief scope is as follows:

Set-up an integrated contact center for MSEDCL with following
functionalities:
a. Inbound calls
b. Social Media Management
c. Email/SMS Handling
d. Chat Support
e. Outbound calls

Two dedicated teams created for Technical Complaints (Power Failure,
Emergency, etc.) & Commercial Complaints (Billing issues, New
Connection request, etc.).

Integrating CTI software with MSEDCL’s CRM software. A single screen
to be provided to agents to access both CTI as well as MSEDCL CRM.
MSEDCL
January 20
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
Coordination regarding installation, transfer, routing, mapping, and
troubleshooting of the toll free number as well as PRI lines shall be
handled by the bidder. Any document/ letter in this regard will be issued
by MSEDCL.

MSEDCL’s owned Toll Free numbers – 2 numbers (1800-2333-435 &
1800-200-3435 along with short Code 1912 & 19120 ) to be mapped &
along with 8 PRI Lines (in the name of MSEDCL)

MIS Reporting.
a) Place: The Primary Call Center and the Disaster Recovery Center
(Active) must be located in Maharashtra. Currently, primary center
is located at Pune & secondary site is located at Thane location.
b) Language: The call center would be required to provide
inbound/outbound services in Marathi, Hindi and English.
17.1.3 Benefits:

Better & professional Customer Care service to MSEDCL Consumers
calling its Toll free numbers (1912, 19120, 1800-2333-435, 1800-2003435).

Faster call handling and quicker resolution of Consumers’ Calls.

Professional Social Media Management with integrated Social Media
engagement Platform.

High Availability of CCC operations. BPO companies maintain robust
CCC Infrastructures, trained manpower backups & redundant telecom
lines to avoid disruptions and SLA penalty.

Outbound campaign like payment follow-ups can be easily arranged for
better outcome.

Changes in IVRS or Business Process can be easily & quickly carried out.

Easy Capacity addition with similar Service Level during Monsoon & other
critical times.

System Generated Agent Utilization reports & live dashboard fully
accessible to MSEDCL.
17.1.4 Project status:
Letter of Award for ‘Providing Customer Care Services to MSEDCL for the
period of Three Years’ is issued on dated 25.01.2018 for Rs. 19.94 crores. The
MSEDCL
January 20
392
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Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
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service provider has been managing enterprise wide customer care of
MSEDCL since 16th March 2018.
17.1.5 Revenue Expenditure:
(Rs. Crs)
FY20-21
(Projected)
FY21-22
(Projected)
FY22-23
(Projected)
FY 23 -24
(Projected)
FY 24 - 25
(Projected)
6.60
6.60
6.60
6.60
6.60
17.1.6 Cost Benefit:
In addition to address the consumer complaints for which Customer Care
Centre has been established, MSEDCL has utilized Centre for follow up of
payments and achievements of Outbound Campaign for payment follow-ups
are as under:-:For the period Apr-2018 to Mar-2019 total no. of calls made to defaulting
consumers were 5, 67,046 nos. (Monthly avg. 47,253 nos.) and payment
received was of Rs. 461.36 crore (monthly avg. Rs. 38.44 crore ). For the
period Apr-2019 to Dec-2019 total no. of calls made to defaulting consumers
were 1, 50,515 nos. (Monthly avg. 16,723 nos.) and payment received is of
Rs. 89.02 Crore (monthly avg. Rs. 9.89 crore). Outbound Campaign for
payment follow-ups with defaulting consumers, helped MSEDCL in realization
of revenue.
17.2 Go Green Initiative
17.2.1 Objectives & Scope:

In pursuance of Digital India Program (Digital Program) of Government of
India (GoI) and digitization of its services and implementation of ‘Paperless
Office’ at State Level by Government of Maharashtra (GoM), MSEDCL is
proactively moving towards paperless and digitally led systems & structures.

In view of the above and in order to encourage the consumers to participate
in the Digital Program, MSEDCL has decided to offer a rebate of Rs. 10/on every electricity bill to the consumers who opt for an electronic copy of
the bill instead of the hard copy under its “Go Green” initiative. The initiative
MSEDCL
January 20
393
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Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
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is launched (after approval of MSEDCL Board) w.e.f. 1 December, 2018 for
LT consumers.

Go-Green initiative is launched as a voluntary initiative (not a compulsion)
wherein consumers are free to opt for an electronic copy of the bill instead
of the hard copy as per their willingness. MSEDCL has incurred expenditure
in upgrading its digital infrastructure to deliver this service to the willing
consumers.

At present MSEDCL is serving around 2.5 crores consumers, out of which
around 40 lakhs consumers are availing the online facilities for payment of
bills and other activities. Thus there is a potential of tapping these
consumers under the Go-green initiative by opting for the e-bill facilities.
Presently around 93,000+ consumers have opted for e-bills under the GoGreen initiative.

Go-Green initiative of MSEDCL has two objectives - delivering bills through
the digital platform and reducing paper consumption. Additionally, it is
expected that this initiative will help in:

Significantly reducing the time spent in distributing the bills and
therefore improving ease in accessing the electricity services;

Reducing the number of complaints from the consumers regarding nonreceipt of the bill;

Ensuring timely and early realization of payments from consumers thereby
reducing the working capital requirement of the petitioner;

Bringing down the printing and distribution expenses in the long run, if
considerable number of consumers opt for this initiative;

It is requested to allow the revenue expenditure of the said initiative as a
part of Annual Revenue Requirement (ARR) for determination of Tariff for
respective years and any cost saving achieved due to this initiative will also
be reflected in ARR of respective years and will thereby benefit the
consumers at large.
MSEDCL
January 20
394
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
17.2.2 Revenue Expenditure:
(Rs.Crs)
FY 20-21
(Projected)
FY 21-22
FY 22-23
FY 23 -24
(Projected) (Projected) (Projected)
FY 24 - 25
(Projected)
1.28
1.47
1.69
1.95
2.24
Note: Per year rise of 15% consumers opting for Go-Green initiative is considered.
17.2.3 Cost benefit:
As on Dec-2019, total no. of consumers registered for Go-Green facility are
93,068 nos. For the period Apr-2018 to Mar-2019 no. of complaints for “Non
receipt of Bills were 83829 nos. (Monthly avg. 6986 nos.). For the period Apr2019 to Dec-2019 no. of complaints for “Non receipt of Bills” are 36249 nos.
(Monthly avg. 4027 nos.). It is observed that there is a reduction in no. of
complaints of “Non receipt of Bills”. During the period Apr-2019 to Dec-2019 the
no. of Go-Green registered consumers who have availed Prompt Payment
Discount are 3, 38,355 nos. and bill amount paid is of Rs.49.69 Crore. This has
helped MSEDCL in realization of Revenue.
17.3 SMS Services
17.3.1 Objectives & Scope

MSEDCL has undertaken several initiatives & online services in which large
numbers of SMS are sent to Consumers & Employees of MSEDCL
Currently, approx. 2.21+ Crs out of 2.69 Crs consumers have registered
their mobile numbers with MSEDCL. MSEDCL send SMS text messages to
its consumers & for internal purpose (with Annual Avg.) for:
Bill Alerts & Bill Reminders (27.5 Crs)
Payment ack. for all Payments (10.93
Crs)
Power Outage Notification (20.02 Crs)
Ack. for Online New Connections (52.4
lakh)
OTP messages (11.13 Crs)
Verification of VPN
Verification Employee Portal,
MSEDCL
Escalations to MSEDCL officials etc.
Self-Reading intimation (2.17 Crs)
Leave Notification
Notifications for day to day works (paid
pendency of new connections etc.)
Salary Notifications (6.78 lakh)
Disconnection Notices (62.71 lakh)
Meter Reading Info (1.38 Crs)
January 20
395
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Provisional True Up For FY 2019-20 and
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Verification of Vendor Portal etc.
Meter Reading adv. intimation (4.5
Crs)
Complaint Ack. (56.18 Lakh)
Confirmation through OTP for Mobile
No. Registration
Various MSEDCL Campaigns (2.74
Crs)

Total SMS sent in FY 19-20 (Apr-19 to Sept-19) are 52.98 Crores. Average
Monthly SMS sent are 8.83 Crores per month.

MSEDCL is in process of issuing Letter of Award to the lowest cost (L1)
bidder of the tender for ‘Providing SMS Services to MSEDCL’ for Rs. 30.20
Crores including GST @ 7.90 paise per SMS (excluding GST) for three
years.
17.3.2 Revenue Expenditure:
(Rs. Crs)
FY 20-21
(Projected)
5.44
FY 21-22
(Projected)
5.44
FY 22-23
(Projected)
5.44
FY 23 -24
(Projected)
5.44
FY 24 - 25
(Projected)
5.44
17.3.3 Cost Benefit:
Benefit of sending monthly Bill Alerts & Bill reminders to approx. 2.21 crore
consumers is as under:MSEDCL has issued Letter of Award to the lowest cost (L1) bidder M/s Karix
Mobile Pvt. Ltd of the tender for ‘Providing SMS Services to MSEDCL’ for Rs.
30.20 Crores including GST @ 7.90 paisa per SMS (excluding GST) for three
years. MSEDCL is spending Rs. 0.84 crore per month on SMS services. For
the period Apr-2018 to Mar-2019 total no. of consumers who availed Prompt
Payment Discount was 5, 49, 17,438 nos. (Monthly approx. 45 lacs
consumers) and amount paid was of Rs. 7948.17 crore (monthly avg. 662
crore). For the period Apr-2019 to Dec-2019 total no. of consumers who availed
Prompt Payment Discount was 4, 34, 47,518 nos. (Monthly approx. 48 lacs
consumers) and amount paid was of Rs. 7051.45 crore (monthly avg. Rs. 587
crore). This helped MSEDCL in realisation of revenue.
MSEDCL
January 20
396
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Delhi Electricity Regulatory Commission (DERC) in its Order in the matter of
Petition for approval of Annual Revenue Requirement (ARR) of Tata Power
Delhi Distribution Ltd. for the FY 2018-19, Revised ARR for FY 2017-18, True
up for FY 2016-17 has approved expenses of SMS services separately in ARR
under other expenses. By drawing same analogy, MSEDCL humbly requests
Hon’ble Commission to consider expenses incurred for the above said SMS
services as revenue expenditure over and above O&M expenses.
17.4 RF-DCU (Expression of Interest & Tender)
17.4.1 Scope:

The vendor has to supply, install, commission and configure RF DCU in the
pilot area having RF Meters installed. In case of multiple agencies are
allotted the work, the quantum of RF meters in pilot area, allotted to each
agency. The brief scope of work includes the following activities:

Installation and Configuration of RF DCU in field where RF Meters are
installed

Commissioning of RF Meters for existing and newly installed RF Meters

Download of RF Meter data (from all the RF Meter make) through RF DCU.
a) Reading Data: As per Billing Cycle compulsory & also on demand, if
required.
b) Tamper Data: As and when detected in a meter
c) Bill History & Load Survey: On demand

Installation and configuration of data collection software at MSEDCL.

Network debug, validation of data. Maintenance of RF Networks in the field.

For first two months, RF DCU implementation will be done in parallel to
existing RF reading through HHT and correctness of RF Meter readings
received through RF DCU will be verified after comparing with RF reading
received through HHT.

In case of no reading received through DCU, all the remaining meters shall
be downloaded using HHT and submitted in the format required for billing.
MSEDCL
January 20
397
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
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17.4.2 Objective:
To take readings of RF meters by installing DCUs so as to achieve automatic
meter reading (AMR) for single phase & three phase consumers.
17.4.3 Benefits:

No need to visit the consumer premise/carry Hand Held Terminals (HHT) to
take meter readings.

Readings downloaded by DCUs can be seen online through web based data
collection software of agencies.

Accuracy of reading is 100%.
17.4.4 Project status:
 LoA against EOI is awarded for 3 years for Rs 30.6 Lakh

LoA against EOI is awarded for 5 years for Rs 24.18 Crs
17.4.5 Revenue Expenditure (RF-DCU meter readings)
(Rs.Crs)
FY 20-21
(Projected)
4.8
FY 21-22
(Projected)
4.8
FY 22-23
(Projected)
4.8
FY 23 -24
(Projected)
4.8
FY 24 - 25
(Projected)
4.8
17.4.6 Cost Benefit:
RF-DCU project is implemented in towns with high losses like Jalgaon, Nanded
and Latur on pilot basis. The detailed analysis has shown rise of 12% in sale
after RF DCU based meter installation in above zones. As MSEDCL is planning
to implement RF-DCU all across Maharashtra, it is expected to get 1741.49
MUs annually, which can yield additional revenue of Rs. 115.28 cr. approx.
also additional saving of meter reading cost of Rs.21.68 cr. approx.
MSEDCL
January 20
398
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
17.5 Substation Monitoring System (SMS)
17.5.1 Objective:

The growth of a Country depends upon various basic pillar of infrastructure
and one of such basic infrastructure is availability of quality and reliable
power. 16 years have been passed since the enactment of The Electricity
Act 2003. Indian power distribution utilities have come a long way but still
distribution is the weakest link in the entire value chain of the Electricity
sector. Thus, there is a need of introduction of IT and automation in
operation of distribution utilities.

Distribution utilities generally operates three layers of network i.e. Subtransmission (33 kV), Primary Distribution (11 kV) and Secondary
Distribution (0.415 kV). Any interruption at any level accounts for outage to
hundreds/ thousands of customers. Thus it is necessary to monitor each
and every network element in the system remotely.

Substations are inevitable components in all power networks. It is the heart
of distribution network. The entire downstream network is controlled and
managed by sub-stations. Substation equipment health monitoring is very
important for providing reliable and continuous power to the consumers.
Substation equipment failure plays a major role in reliability of power
delivery. Having an important role within the power system, substations are
required to be equipped with great variety of monitoring and control devices.
Therefore, it becomes of utmost importance to have real time data of substations.
17.5.2 Solution Proposed:

Ever rising power demand and increase in CAPEX required for building new
substations has motivated the utilities to utilize their existing power system
capabilities more efficiently and smartly. But to achieve this objective, we
need data of various equipment in the sub-station. For this we have
implemented SCADA/AMR etc. but due to one or another reason these
systems are not giving desired results. In order to avoid CAPEX and
problems faced as above and to ensure data availability, we have
implemented Substation Monitoring System pilot project for 44 nos. of 33
kV substations under Akola Circle.
17.5.3 Substation Monitoring System (SMS) Pilot Project

Substation Monitoring System (SMS) Pilot project implemented at Akola
Circle for 44 nos. of substations on OPEX basis. Payment to agency only
on availability of data.
MSEDCL
January 20
399
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
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Main Petition

SMS is a low cost indigenous technology for automation and business
process improvement.

SMS project is effective in monitoring of various substations equipment
such as circuit breaker, transformer, feeder and DC battery system. The
online substation monitoring devices are installed on all the incoming and
outgoing feeders and on all the transformers.

These devices captures the data like voltage, current, frequency, breaker
status, relay tripping, OLTC position, Transformer OTI,WTI etc. after every
15 mins and send it to the central server. The specially developed webbased software shows different dashboards of all these monitored data.

The system monitors all parameters (Voltage, Current, Power, Energy,
Power factor, frequency etc.) on real-time basis at the substation level,
and displays single line diagram of substation and provides the reports to
all the stake holders.

Akola Pilot Project - 3 LOAs issued
o LOA given for Rs. 1.86 Crs
o LOA given for Rs. 1.58 Crs
o LOA given Rs. 1.78 Crs
17.5.4 Benefits of Substation Monitoring System:

Benefit to MSEDCL:
a) Improved monitoring
substations
and
situational
awareness
of
remote
b) Monitoring of substation data in real time
c) Reducing the work of operator like taking hourly data, recording the
tripping etc.
d) Substation equipment health monitoring
e) Feeder Interruption analysis and computation of reliability indices
such as SAIDI, SAIFI etc.
f) Monitoring failures and breakdowns, Feeder load profiling, Load
growth planning and management
g) Feeder demand monitoring, Energy accounting
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January 20
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h) Reporting of violations/exceptional values of different equipment in
substations
i) Analysis and diagnose the condition of the substation equipment
j) Load balancing , Data for Load forecasting
k) Data for Strategic, Managerial and Operational decisions

Benefit to Customers:
a) Quick actions from MSEDCL to reduce downtime and improve
customer satisfaction.
b) SMS alerts facility can be extended to consumers so that consumers
will know that feeder is under breakdown.

The Substation Monitoring System helps the Substation Operator/Shift Incharge to perform managerial duties primarily involving operation and
maintenance of MSEDCL’s Sub-Station equipment effectively. Traditionally
most utility performed regular maintenance in order to prevent equipment
failure. On-line monitoring of power transformers and associated
accessories is becoming an essential feature. The justification for on-line
monitoring is driven by the need to increase the availability of power
transformers, re-direction of time and/or operational-based maintenance to
condition based maintenance, asset and life management and failure cause
analysis.

The planning for distribution system includes the analysis of existing system
and planning of optimal future requirement of sub transmission and
Distribution lines & Distribution Substations keeping in view the futuristic
approach. This would also include the requirement of adequate
Communication system and IT infrastructure etc.

Through this approach, a distribution company should be able to analyze
the distribution network for following:
a) Optimization of loading of power transformers and Feeders.
b) Ensuring an adequate network for existing as well future need
with N-1 redundancy in the network.
c) Reduce technical loss by optimizing the network configuration.
d) Ensure voltage regulation in line with the Regulations.
MSEDCL
January 20
401
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
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Main Petition

The data obtained from substation monitoring system project can be used
for carrying out various analytics which will be helpful in taking decisions in
respect of Operational, Strategic, Managerial and Planning of the system.

The system helps in monitoring power supply, proper planning, decision
support and taking corrective actions on the business activities in addition
to transparently disseminating the power supply status.
17.5.5 Substation Monitoring System across Maharashtra
 Vide Board Resolution no. 1489 dtd 12-Oct-2018, MSEDCL Competent
Authority has approved floating the Tender for Substation Monitoring
System across Maharashtra with an estimate of Rs. 330.54 Crs.

Tender with an estimate of Rs. 330.54 Crs (incl. Taxes) for 5 years is floated
on OP-EX basis for Implementing Substation Monitoring System for 3289
nos. of 33/22/11 kV substations & switching stations across MSEDCL.

Along with the monitoring of feeders, feeder control action also proposed
under ADMS (Automatic Demand Management Scheme) for all feeders.
17.5.6 Revenue Expenditure:
(Rs. Crs)
FY 20-21
(Projected)
69.53
FY 21-22
(Projected)
69.53
FY 22-23
(Projected)
69.53
FY 23 -24
(Projected)
69.53
FY 24 - 25
(Projected)
69.53
17.5.7 Cost Benefit:
Implementing Substation Monitoring System (SMS), will help MSEDCL in
controlling outages by bringing effective OMS (Outage Management System)
of Feeders, health monitoring of equipment’s and other benefits as mentioned
above. Further, the revenue loss due to force outages will be reduced. At
present the revenue loss due to force outages is approx. Rs. 339.77 crore/year,
with the help of SMS, savings of nearly 20 % of revenue loss (i.e. Rs. 67.95
crore/year) is envisaged. Though the SMS is shown as OPEX, it is actually
deferred CAPEX, as by making performance based payment over the 5 year
period and this expenditure is not a part of regular O&M expenses.
MSEDCL
January 20
402
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
17.6 MSEDCL Cloud Project
17.6.1 Objectives & Scope:

Under the Govt. of India funded (100% grant) RAPDRP Part ‘A’ Scheme,
MSEDCL had established its own state of the art Tier-III Data Centre (DC)
at Mumbai and Disaster Recovery (DR) Centre at Nagpur in the year 2011.
Vide MERC’s in-principle approval MERC/CAPEX/2017-18/5053 dtd.
01/01/2018, Hon’ble Commission has given the approval for upgradation of
IT Infrastructure at ON-PREMISE Data Center & Disaster Recovery site of
MSEDCL (Cost Rs. 131.40 Crs.).

However, vide Maharashtra Government Circular (मातंसं-060/3/2017 dtd.
29th Jan 2018) on Cloud Computing Policy, instructions were given to the
Govt. Departments, Local Bodies & PSUs to migrate all their existing IT
applications onto cloud platform. In pursuance to this, MSEDCL Competent
Authority vide Board Resolution no. 1242 dtd. 07/04/2018, has accorded
approval to migrate all MSEDCL IT applications onto Cloud Platform.

Cloud computing is the on-demand delivery of IT resources (i.e. compute
power, database storage, applications etc.) through a cloud services
platform via the internet with pay-as-you-go facility. The building and
maintaining data centers is replaced by consuming such IT resources from
cloud services platform. Leading Cloud Services Providers in India are
Amazon Web Services (AWS) and Microsoft Azure.

MSEDCL has appointed a Managed Service Provider to migrate all its
applications over to Amazon Cloud (selected Cloud Service Provider) and
maintain them as per MSEDCL’s requirement in the cloud environment for
the period of 5 years. The cost of Project is Rs. 88.77 Crs.
17.6.2 Benefits

Less operational issues:
The maintenance of On-Premises Infrastructure is becoming challenging
day by day. The cloud runs on its own servers through a professional
company whose only job is to make the cloud functional and bug-free, it’s
usually a whole lot more reliable than on premise server. The cloud service
provider company has to maintain the cloud uptime as per the Service level
Agreement with the Customer which is normally 99.99%. Therefore cloud
MSEDCL
January 20
403
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
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Main Petition

computing actually has fewer issues than On-Premises infrastructures.
Security:
Cloud is usually managed by large technologically advanced companies like
Google, Microsoft, Amazon etc. backed by top class security professionals
managing the security infrastructure of Cloud 24x7. The cloud service
providers also perform more regular security audits. e.g. Following are
Amazon Web Service Security Certifications/Compliances: CSA Cloud
Security Alliance Controls, ISO 9001 Global Quality Standard, ISO 27001
Security Management Controls, ISO 27017 Cloud Specific Controls, ISO
27018 Personal Data Protection, PCI DSS Level 1 Payment Card
Standards, SOC 1 Audit Controls Report, SOC 2 Security, Availability, &
Confidentiality Report, SOC 3General Controls Report. Cloud providers
even back up data to additional remote servers so data loss just won’t
happen.

Lower Total Cost of Ownership:
MSEDCL’s On-premise IT-infrastructure estimated cost for 5 years (201819 to 2022-23) is approx. Rs. 205.79 Crores i.e. approx. Rs. 41.15 Crores
per year. Whereas for cost of Cloud Computing (as per recent LOA awarded
by MSEDCL) for availing same type of services is approx. Rs. 21.65 Crs
per year (thus saving Rs. 19.50 Crs per year).

No Capital Expenditure:

The On-premise IT-infra procurement is usually done on the basis of sizing
requirement of next five years with peak load. This often results in wastage
of resources during initial years & off peak period. In case of Cloud
Computing only operational cost needs to be paid which is billed on monthly
basis. Client simply needs to pay for the amount of computing resources
(servers & storage) utilized per month. You get purely what you need, when
you need it.
Faster Deployment:
The IT infrastructure in Cloud Environment can be deployed within matter
of minutes whereas for On-Premises IT Infrastructure; the procurement
process of new IT equipment can take months.
In case of Cloud Computing, resources can be purchased and consumed
on a “pay-as-you-go” basis, and increased or decreased as needed for
MSEDCL
January 20
404
Final True Up For FY 2017-18 & FY 2018-19,
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Main Petition
optimal utilization. Cloud computing is scalable on demand. Cloud service
providers usually allow scaling up and down on demand seamlessly. The
billing is done by cloud service providers on monthly basis.
17.6.3 Project status:
The migration of applications from On-premise Data Center to Amazon Web
Service (AWS) Cloud is going on and will be completed by Dec-19.
17.6.4 Revenue Expenditure
(Rs. Crs)
FY 20-21
(Projected)
16.64
FY 21-22
(Projected)
16.64
FY 22-23
(Projected)
16.64
FY 23 -24
(Projected)
16.64
FY 24 - 25
(Projected)
16.64
17.7 Annual Technical Support of SAP/HANA/Oracle Software Licences
17.7.1 Introduction:

MSEDCL has implemented integrated SAP ERP (Enterprise Resource
Planning) solution for its core functions for improvement in operation
efficiencies with respect to the finance, project functions and integrating with
existing systems viz. Billing, HRMS etc.

MSEDCL has also implemented Integrated Enterprise wide SAP HRMSPayroll-ESS solution with allied module.

MSEDCL has also invested in procurement of Oracle Databases Licences
for its various IT systems.
17.7.2 Objectives:
The OEM Annual Technical Support (ATS) which covers product updates,
maintenance releases in the form of free fixes and patches and support related
to the ERP products/ERP Database/Oracle Database is required for smooth
functioning of SAP ERP, Oracle Database & Other IT Systems.
17.7.3 Scope:

The Scope of ATS includes Telephonic, FAX, email & online Support
service or by deputation of experts if necessary.
MSEDCL
January 20
405
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition



Product updates/ Maintenance releases in the form of free fixes and
patches.
All support related to ERP/Oracle Product and ERP/Oracle Databases.
The Annual Technical Support is 24x7.
17.7.4 Scheme Approval:

ERP Scheme:
 MERC scheme code: MSEDCL/FY11/21
 MERC In Principle Clearance Reference No. and Dt :
MERC/CAPEX/2010/2011/02588 dated 31.03.2011
 In Principal Approved Cost Rs in Crs : Rs. 91.00 Crores.

IPDS Scheme:
a) MERC In Principle Clearance Reference No. and Dt :
MERC/CAPEX/2017-18/5033 dt. 21.07.2017
b) In Principal Approved Cost Rs in Cr : Rs. 131.40 Crores.
17.7.5 LOA Project cost:

LOA for “Annual Technical Support of SAP Software Users licences and
HANA Licences” issued to M/s SAP India Pvt. Ltd. of amount Rs. 5.36 Crs
(excl. GST) (Rs. 4.60 Crs [excl GST] for 1 year).

LOA for “Supply of SAP-HRMS licenses” including AMC of Licences for 1
year is issued to M/s SAP India Pvt. Ltd. of amount Rs.11.96 Crs excluding
GST. Per year cost of AMC Licences is Rs. 2.16 crs (excl. GST)

LOA (CGM(IT)/1182) for renewal of ATS of Oracle Software for 1 year was
given to M/s Oracle India Pvt. Ltd on 20-08-2019.
17.7.6 Revenue Expenditure:
(Rs. Crs)
FY 20-21
(Projected)
11.87
MSEDCL
FY 21-22
(Projected)
11.87
FY 22-23
(Projected)
11.87
January 20
FY 23 -24
(Projected)
11.87
FY 24 - 25
(Projected)
11.87
406
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
17.8 Vehicle Tracking System
17.8.1 Scope of work :

This is a OPEX project and hence all investment for supply, implementation,
operation and maintenance of the entire infrastructure (hardware, software
etc.) for the complete duration of 5 years contract period should be borne
by the successful bidder only.

Design, Development, Customization, Supply, Installation, configuration of
the GPS based VTS tracking Solution on successful bidder’s own cloud.
Application will be used by approx. 250 no. of MSEDCL users.

Successful bidder will Provide maintenance support of the GPS based VTS
tracking Solution for a period of 5 years (from the date of Go-live of the
project) on OPEX basis.

The fitment of GPS device for vehicles shall enable on-line, real-time
monitoring of their movement and effective enforcement through a web
based Vehicle Tracking Application Solution.

The devices will have to be mapped on licensed map having commercial
license with the geo-fencing of all vehicles as per the assigned route and
working area. The cost of all types of licenses will have to be borne by the
bidder.

As part of the project, a web based application integrated with mobile app
to be supplied to facilitate monitoring of vehicle movement. Generation of
MIS reports along with dashboard for easy monitoring shall be provided.

The selected bidder needs to provide handholding support along with
integration of system with MSEDCL existing systems such as CRM, SAPERP for sharing the data of vehicles i.e. location, mileage data etc.

The VTS devices are to be installed by the successful bidder on MSEDCL’s
vehicles up to sub-division/Section office level. The information of these
vehicles including contact details will be shared with successful bidder after
award of contract.

During the contract period, it will be the responsibility of the successful
bidder to remove VTS devices from old vehicles and install VTS devices in
new vehicles, whenever required (transfer / relocation). (Note: Renewal of
vehicle hiring contracts is done by MSEDCL periodically. Also new
departmental vehicles may be purchased and old vehicles scrapped).
MSEDCL
January 20
407
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
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17.8.2 Objectives / Benefits
The objective of this project is to establish robust and reliable mechanism of
GPS Monitoring System on OPEX basis which shall
a) Provide effective monitoring, better decision making, planning and
management of MSEDCL vehicles.
b) Track the vehicles on real-time basis, so that the current location of the
vehicle can be identified for effective monitoring.
c) Identify the vehicles doing violations based on the time of travel, distance
travelled, destinations, etc.
d) Generate analytical / graphical reports based on the various parameters, as
desired by MSEDCL from time-to-time (development/customization to be
done if required).
17.8.3 Revenue Expenditure:
(Rs.Crs)
FY 20-21
(Projected)
FY 21-22
(Projected)
FY 22-23
(Projected)
1.05
1.05
1.05
MSEDCL
January 20
FY 23 -24
(Projected)
1.05
FY 24 - 25
(Projected)
1.05
408
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
18 CONSUMER SERVICE INITIATIVES
18.1 Mobile App for Consumers
18.1.1 ‘‘Mahavitaran’ a mobile app for consumers was launched in Jul-2016 and
received unprecedented consumer response. Initially App was launched with
basic services such as view and pay bill, view bill history, complaint registration,
feedback about services, contact details update etc. App is available in English
& Marathi on Android & iOS platform and till date, more than 40 Lakh
consumers have downloaded this app.
18.1.2 Mobile app has enabled active two way interaction with the consumers.
Constant interaction and listening to our consumers had helped in enhancing
mobile app by adding following more services. Additional facilities made
available in the app during year 2018-19 and 2019-20 are as follows:


Apply for New Connection, Change of Name, Change of Load etc
Locate nearest MSEDCL office and nearest collection center


Estimate energy consumption and bill calculator
Get Information about the Feeder from where power supply is provided to
your connection

Report any suspected electricity theft activity in your area


Application for Solar Ag under MSKPY
Register for Go-Green facility
18.2 SMS Alerts & E-mail notifications to Consumers
18.2.1 Understanding that not all consumers would require mobile app, MSEDCL,
since year 2016-17, started providing all consumer related services through
SMS on mobile and towards this, took massive efforts to collect mobile number
of all consumers. Registered mobile numbers are used for passive
communication with the consumers. Till date, total mobile numbers registered
are more than 222 Lakh and total E-Mail IDs registered are more than 19+ Lakh.
MSEDCL
January 20
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
SMS alerts are issued to consumers for bill details, meter reading SMS, outage
information etc. SMS services cover entire gamut of consumer connect with
MSEDCL.









MSEDCL
Bill details
(210+ Lakh SMS per month)
Meter Reading SMS
(210+ Lakh SMS per month )
Payment Acknowledgement
(160+ Lakh SMS per month)
New Connection status information (1+ Lakh SMS per month)
Outage Information
(150+ Lakh SMS per month )
Ack for Complaint Registration
( 1+ Lakh SMS per month)
Bill reminder (before and after due date)
(100+ Lakh per month)
Other SMS (OTP/ Campaign SMS) ( 100+ Lakh SMS)
E-Mails are sent for
January 20
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

Monthly Bill
Firm Quotation for new connection
( 19+ Lakh E-mail per month )
(3000+ E-mail per month)
18.3 Online Cash Collection System (OCCS)
18.3.1 MSEDCL having consumer base of around 26 million consumers and turnover
of more than Rs. 5000 Crores every month, has a very diversified ways of Bill
Collection spread all over Maharashtra. Around 8000 cash collection centers
are operative across the state which includes Departmental Collection
Counters, Private Collection Agencies, Banks, District Co-operative Banks,
Any-Time-Payment Machines and Post Offices, in addition to the Online
Payment options like ECS, Bank Payment Gateways, Online Payment
Agencies and through MSEDCL Web-site and Mobile app. Collection made by
these offline collection centers took couple of days for reconciliation at
MSEDCL offices. Remote Collection Centers located in villages far off, would
even take more time for the data to be updated in billing system. Consolidation
of data from various sources was one of the major challenges for the MSEDCL
Staff.
18.3.2 At all physical collection Centers centralized Online Cash Collection System is
implemented w.e.f. Jan-18 onwards. Consumer is allowed to pay MSEDCL’s
Energy bill and New Connection other service charges anywhere in the state,
simply by showing bill details SMS, no hard copy of bill is required.
18.3.3 With the implementation of OCCS, the bill paid by consumer gets reflected in
his account on the same day.
18.4 MahaPowerPay Wallet:
18.4.1 For facilitating consumers especially in a rural area and slum area, MSEDCL
has launched its own e-wallet ‘MahaPowerPay’. It is also a collection
mechanism to engage small entrepreneurs in distant area in MSEDCL bill
collection. It helps in enabling bill payment at retailers, at nearest location
convenient to consumers. It is a pre-paid system having online registration
process. It can be accessed through mobile for recharging of wallet as well as
bill payments. There is no need of person to visit MSEDCL office. It can be
owned by any individual / retailer like grocery shop owner, daily need shop
MSEDCL
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owner, medical shop owner etc. In this retailer has to recharge the account with
Rs. 5000/- initially, with subsequent recharges in multiples of Rs. 1000/-. He
can recharge the wallet online through debit / credit card, netbanking etc.
18.5 Online Address Correction & Name change facility
18.5.1 There were several complaints received from consumers about long pending
applications for name change and address correction. In order to facilitate
speedy redressal of such complaints, address correction is enabled for
consumers through SMS, wherein consumers are sent SMS with weblink for
address correction. Approx. 80,000+ applications for address correction
received through weblink after sending SMS request to consumers. Also
consumers can submit the address correction application online through Web
Self Service (WSS) portal.
18.5.2 Facility is made available to consumers to apply for name change through
Mobile App, WSS Portal. Consumer can apply for name change, upload the
documents online and need not visit the MSEDCL office.
18.6 Consumer outreach through Social Media such as Twitter, Facebook
18.6.1 MAHAVITARAN has active presence on Social Media such as Facebook,
Twitter etc. to interact with consumers. From CMD, Directors to every filed
officer of MAHAVITARAN are available actively on social media platforms to
redress consumer grievances.
18.6.2 Approx. 800 twitter accounts used by field officers to respond to consumer
queries, grievances. Complaints received through twitter and facebook are
getting recorded in CRM and assigned to concerned field officer for redressal.
18.7 Integration of MSEDCL IT system with Aaple Sarkar / Maitri / Garv / Urja
portal
18.7.1 Under the digital initiatives of Maharashtra Government, MSEDCL Services are
integrated to ‘Aaple Sarkar’ portal of Govt. of Maharashtra & ‘MAITRI’ portal for
Industries

New Connection
MSEDCL
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

Change of Name
Faulty Meter Replacement
Also, as per guidelines from ministry of power, Govt of India, MSEDCL has
done


Integration of Outage Information with Urja App of Ministry of Power
Integration of performance parameters with National Power Portal

New Connection system integrated with Garv portal for availability of
Data of Rural Household Electrification at habitat.
18.8 Centralized Billing
18.8.1 Before implementation of centralized billing system, decentralized consumer
database was being maintained at circle IT centers and for reporting purpose,
billing data was uploaded to central server, which was post billing activity. Most
of the billing activities such as submission of reading, receipts, meter
replacement and validation thereof, was done offline and there was delay in bill
generation due to manual activities which were under control of sub-division
office. Unscheduled reading program, delay in reading program was resulting
in delay in bill generation in turn resulting delay in revenue realization.
18.8.2 Centralized billing started for select circles in the year 2016-17 and till Mar-18,
billing of all consumers in 8 circles was done successfully through centralized
billing system. 100% billing of all consumers across all circles (44 no.) was
started through centralized billing from Aug-2018 onwards.
18.8.3 The objectives of centralized billing are as follows:
 Regulate the cash flow through scheduled billing activity i.e. billing of each
consumer on fix date – each meter to be read on fix date of every month


Improved quality of billing – centralized validation and sanitization of data
Reduction in billing complaints and reduction in losses
18.8.4 With the centralized billing system following achievement is observed:
 Consumer meter reading to bill generation, complete process is scheduled
and automated, without any manual intervention from field or IT staff
MSEDCL
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
Minimum delay in submitting the MIS information due to no/minimal network
delay or manual activities.
18.9 RF Metering & AMR for HT Consumers, Feeders
18.9.1 RF Metering & RF DCU (Data Concentrator Unit) implementation:
To reduce the manual intervention in meter reading process, MSEDCL has
adopted policy to install new technology meters i.e. meters with communication
capability.For Single Phase and Three Phase meters, Meters with RF port with
6LowPAN standard protocol for communication over 865-867 MHz de-licensed
frequency band are being procured at MSEDCL. In the year 2017-18, more
than 35 Lakh Single Phase RF Meters procured. These meters will be read
through DCU for automatic meter reading.
RF DCUs are having in-built RF module to capture meter data and in built
GPRS modem for communication with AMR server. DCU has store and forward
feature and can store meter data of approx. 2000 meters at a time. In 2017-18,
a pilot project at Washi & Kalyan circle was done and two agencies appointed
to implement DCU solution to read RF meters in this area for 3 years. Total RF
meters covered in pilot activity was 40,000 RF Meters.
RF DCU implementation is done for approx. 5 lakh RF meters in RF dominated
area at Nashik, Pune, Kalyan and Bhandup zone.
MSEDCL
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Replacement of existing 8.5 lakh meters with RF meters is being done in towns
at Latur zone, Nanded zone and Jalgaon zone, wherein a vendor will install RF
meters by replacing all existing meters in the area and also implement RF DCU
to read these meters for next 5 years.
Till date, MSEDCL has installed more than 60 lakh RF meters for single phase
consumers across Maharashtra and these RF meters will be read remotely
through RF DCU in future.
18.10 HT Consumer Portal
18.10.1
A Portal is launched in Sept-19 for HT Consumers. For registered HT
Consumer, following services are available through portal
 View Bill details


Online payment of bills
View Consumption History


View Load Profile – Energy / Demand / Voltage / Current Graph
Grievance Redressal System


Profile Update
Bill Simulation – helps to prepare the monthly budget for electricity usage

Comparison with peers – compare the consumption pattern with peers
in the same sector
18.11 Online Refund of Security Deposit / Electricity Duty
18.11.1
Consumer can apply online for refund of excess SD, refund of SD after
disconnection.
18.12 Proposed Consumer Services
18.12.1
LT Consumer Portal:
The portal for LT Consumers will be prepared in line with HT consumer portal
after implementation of RF DCU and installation of modems to LT consumers
above 20kW. Daily consumption pattern will be made available to all LT
consumers.
18.12.2
Missed Call service for registration of no power complaints
MSEDCL
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A dedicated number will be published so that consumers can register their no
power complaints just by giving miss call to MSEDCL number.
MSEDCL
January 20
416
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19 PROPOSAL FOR SCHEDULE OF CHARGES
19.1 Background
19.1.1 Presently, MSEDCL is recovering various charges from the consumers for
various services provided as per the Schedule of charges approved by Hon.
Commission vide its Order dated 12 September, 2018 (Case No. 195 of 2017).
19.1.2 Basically these charges are for recovery of cost incurred for availing
supply of electricity and various other services provided to the consumers. In
order to shield regular consumers from consumer service specific costs,
provision for schedule of charges has been made. Income from these charges
form a part of the non-tariff income of MSEDCL.
19.1.3 As per the provisions of Section 46 of the Act provides that the Commission
may authorize a Distribution Licensee to charge a person requiring a
supply of electricity any expenses reasonably incurred in providing
any electric line or electrical plant used for the purpose of giving that supply.
Otherwise these costs will get passed on to regular consumers of MSEDCL.
19.1.4 The Electricity Act 2003 (EA 2003) provides Distribution Licensees to
recover charges incurred for supply of electricity from its consumers in
accordance with tariff determined by the State Regulatory Commission. The
charges to be recovered may include fixed charges in addition to charges for
supply of electricity and rent or other charges for meter or other equipment
provided by licensees.
Section 45 of EA 2003 reads as follows –
“ (3) The charges for electricity supplied by a distribution licensee may include
–
(a) a fixed charge in addition to the charge for the actual electricity
supplied;
(b) a rent or other charges in respect of any electric meter or
electrical plant provided by the distribution licensee ”
19.1.5 In accordance with the provisions of EA 2003, Hon’ble Commission has notified
MSEDCL
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MERC (Electricity Supply Code and Other Condition of Supply), Regulation
2005. MSEDCL submits that as per Regulation 18 of the MERC (Electricity
Supply Code and Other Conditions of Supply) Regulations, 2005, Distribution
Licensees are required to submit the proposal before Commission for approval
of Schedule of Charges (SoC) for such matters required by the Distribution
Licensee to fulfil its obligation to supply electricity to consumers under the
Electricity Act, 2003 and other relevant Regulations.
19.1.6 MSEDCL submits that Schedule of Charges (SoC) represent the charges levied
to consumers/applicants for new connection and on existing consumers for
various activities carried out by the Licensee such as load enhancement,
change of name, category, etc., meter testing and various other miscellaneous
activities required to be performed as a Distribution Licensee.
19.1.7 As per provisions of Supply Code Regulations, various charges are permitted
to be recovered from consumers subject to approval from the Commission.
Various services for which charges can be recovered from the consumer as per
provisions in regulations of MERC (Electricity Supply Code) Regulations, 2005
are given below:
Sr. No.
Broad Head
Relevant Regulation
1.
Service connection charges
2.
Charges for temporary supply
3.3.6
3.
Supervision charges
3.3.8
4.
Processing of applications
5.
Charges for increase/reduction
Contract demand/sanctioned load
6.
Change of Name
7.
Processing fee for change of name
8.
Security deposit
9.
Cost of meter
10.
Meter testing charges
11.
Charges for restoration of supply
MSEDCL
3.3.1 to 3.3.4
4.1 (ix)
in
6.8
10.3
10.3 (iv)
11.3
14.1.3 & 14.2.2
14.4.2
January 20
16.2
418
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19.1.8 Considering the above provisions, MSEDCL has proposed following revision in
Schedule of Charges:
19.2 Calculations for Service Connection Charges
19.2.1 In this Section, MSEDCL has provided the necessary calculations to rationalise
the proposed charges.
a) The Commission in its Order in Case No.195 of 2017 dated 12
September, 2018 has estimated the service connection charges on the
basis of 20 meters as the average length. MSEDCL in present proposal has
followed the same estimation and worked out the service connection
charges.
b) As per revised Cost data of FY 2019-20 and centages, the estimates are
prepared to derive the Service Connection charges. In this proposal the
loading - unloading and handling charges for meter, Contingencies,
Insurance of material & price variation/ escalation were taken in
consideration. The centages in total over the total estimated cost of
materials required is 25.50%. All other things are kept as it is such as
supervision charges, variable charges etc.
c) While estimating charges for new HT Overhead connection, MSEDCL has
considered all the legitimate expenditure for works of Gantry, Earthing,
protection and Metering etc. The same works has considered in case of HT
underground new service connection. Accordingly, MSEDCL proposes the
new service connection charges based on all legitimate costs. The detail
cost estimations are enclosed as Annexure 10. The proposed normative
service connection charges are as below:
Sr. No.
Particulars
I) SERVICE CONNECTION
CONNECTION
1
CHARGES
Existing
Charges
(Rs.)
FOR NEW
Proposed
Charges
(Rs.)
OVERHEAD
Low Tension (LT) Supply.
a. Single Phase
MSEDCL
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Sr. No.
Particulars
i.
Existing
Charges
(Rs.)
1,000
Proposed
Charges
(Rs.)
1,530
3,100
3,630
7,150
8,030
For load up to 0.5kW
For load above 0.5kW and up to
ii.
1,500
2,230
7.5kW
b. Three Phase
Motive power up to 27 HP or other
i.
3,500
8,130
loads up to 20 kW.
Motive power above 27 HP but up to
ii.
107 HP or other loads above 20 kW 8,500
14,920
but up to 80 kW.
Motive power above 107 HP but up
iii.
to 201 HP or other loads above 80 13,000
23,840
kW but up to 150 kW.
High Tension (HT) Supply& Extra High Voltage (EHV) Supply *
i.
11kV Supply up to 1,000 kVA.
2,34,900
11kV Supply above 1,000 kVA up to
ii.
21,500 + 2,75,900
5,000 kVA
30/-Per
iv.
22kV Supply up to 1,000 kVA.
2,79,100
2
kVA
for
22kV Supply above 1,000 kVA up to
excess
v.
3,40,000
10,000 kVA
load above
vi.
33kV Supply up to 20,000 kVA.
3,96,600
500 kVA.
EHV Supply and beyond SOP
At actual
viii.
Cases
II) SERVICE CONNECTION CHARGES FOR NEW UNDERGROUND
CONNECTION
Low Tension (LT) Supply.
a. Single Phase
i.
For load up to 0.5 kW
1
For loads above 0.5 kW & up to
ii.
7.5kW
b. Three Phase
MSEDCL
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Sr. No.
Existing
Charges
(Rs.)
13,5
00
Particulars
Motive power up to 27 HP or
other loads up to 20 kW
Motive power above 27 HP but up to
ii.
67 HP or for other loads above 20 21,000
kW but up to 50 kW
Motive power above 67HP but up to
iii.
134 (201)HP or for other loads 43,000
above 50 kW but up to 100 kW(150)
Motive power above 134HP but up
iv.
to 201 HP or for other loads above 66,500
100 kW but up to 150 kW
High Tension (HT) & Extra High Voltage (EHV) Supply *
i.
11kV Supply up to 1,000 kVA.
2,21,000
11kV Supply above 1,000 kVA up to
ii.
(up to 500
5,000 kVA
kVA)
iv.2
22kV Supply up to 1,000 kVA.
22kV Supply above 1,000 kVA up to
2,30,000
v.
10,000 kVA
(above
vi.
33kV Supply up to 20,000 kVA.
500 kVA)
viii.
EHV Supply & beyond SOP Cases
i.
Proposed
Charges
(Rs.)
15,0
80
26,040
50,800
75,660
2,69,800
2,81,900
3,06,600
3,46,000
4,06,900
At actual
Notes:
1. In case MSEDCL permits an applicant to carry out the works through a
Licensed Electrical Contractor (LEC), a rate of 1.30 % of the normative
charges will be applicable towards supervision charges.
2. In case of extension of load, the normative charges will be applicable on
the total load (existing as well as additional load demanded) as per the
load slabs indicated above.
3. In case of extension of Load where augmentation of infrastructure is
required, the expenses will be recovered for such augmentation as
actual in accordance with clause 3.3.4 of MERC Regulation, 2005.
4. The GST will be levied extra as per applicable rates.
MSEDCL
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5. The road opening charges vary from area to area hence will be levied
on actual basis.
d) Charges for Premium Service:
A distribution Licensee has a Universal Supply Obligation (USO) under
Section 43 of the Electricity Act, 2003 to supply electricity to any consumer
within its area of supply who makes a demand. The Petitioner submits that
the Regulatory mechanism permits capital investment after approval of the
Hon’ble Commission and it is further subject to availability of funds for
implementation of this work. MSEDCL being fully owned Government
Company rely for funds on Government Grants and same is worked out and
approved on year to year basis. The Petitioner submits that the other mode
of CAPEX is funding through ARR. The funding through ARR requires loans
to be approved and the same is required to be recovered in tariff. There is
limitation for availing loans by MSEDCL as well as the capacity to repay
loans in time. The connections are released after following seniority list.
It is observed that many consumers are approaching field offices with
requests to carry out work on priority and are ready to carry out works by
paying cost of infrastructure and metering. MSEDCL submits that there is
no explicit Regulatory provision to act on such request applications. Hence,
MSEDCL proposes Premium Service (excluding DDF) charges based on
actual cost estimate (all items including Civil works, road reinstatement and
metering). Such premium service will be applicable to all categories and it
will be on non-refundable basis. Further, MSEDCL will maintain the assets
created and will be utilized for catering future load growth.
The expenditure required is not uniform and vary case to case. However,
the estimate required is prepared based on latest CPA data and Cost data
(BOQ). Rates are derived through e-tendering, joint measurement after
work completion and in consultation with contractors for market prices.
MSEDCL submits that such premium charges will reduce the burden of
infrastructure cost on common consumers.
e) Scheme for optimum utilization of existing distribution assets:
MSEDCL submits that Section 42 (1) of the Electricity Act, 2003 casts duty
MSEDCL
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on MSEDCL to develop and maintain an efficient co-ordinated and
economical distribution system. The Electricity Act 2003 mandates that a
distribution licensee is under obligation to supply electricity to every
consumer within its licensed area of supply. As per Section 43 of the Act if
the owner or occupier of any premises situated in the license area of the
distribution licensee demands supply then the licensee is statutorily
compelled to give connection and release the supply to such an applicant
within the stipulated time period.
By virtue of provisions in MERC Supply Code Regulations, 2005 the
consumers have option to opt for dedicated distribution facility. All the assets
created under DDF schemes are maintained by MSEDCL. It is evident that
in many cases consumer assets created under DDF are not being optimally
utilized. Further, due to allocation of bays exclusively for DDF works,
MSEDCL is not in position to release new connections due to Right of way
issues and space constraints in sub-stations, network/capacity constraints.
In such cases; only option available is mutually sharing of under-utilized
capacity of infrastructure by existing consumer with prospective consumer.
Voltage wise details of underutilized capacity (Feeders in Nos.) are depicted
in table below:
Voltage Level
No. of feeders
11 kV
460
22 kV
213
33 kV
335
It is necessary to devise the scheme for optimum utilization of distribution
assets. Accordingly, MSEDCL proposes following:

Based on new service connection requests, MSEDCL at first stage will
strive to release the connection through its own infrastructure.

If there is space/capacity constraints in MSEDCL substation/lines and
underutilized network created under DDF is readily available in the
vicinity then MSEDCL will utilise underutilized DDF assets, if any
available.

In such cases in the interest of common consumers, MSEDCL will take
over the assets created under DDF by granting depreciated cost of the
MSEDCL
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sanctioned CAPEX to original developer.
 While implementing above proposal, MSEDCL will ensure technical
feasibility by considering nature of load, process in consumer
establishment and reliability of supply. Further, if any works related to
augmentation, isolation of supply systems is required, then MSEDCL will
carry out the works in accordance with Regulation 3.3.4 of MERC
(Electricity Supply Code and Other Conditions of Supply) Regulations,
2005.
f) In case MSEDCL permits an applicant to carry out the works through a
Licensed Electrical Contractor, a rate of 1.30% of the cost estimate will be
applicable towards supervision charges.
19.3 Cost of Meters and Hiring charges
19.3.1 Cost of Meter
Section 45 (3) (b) of the Electricity Act, 2003 empowers Distribution Licensees
to recover a rent or other charges in respect of any electric meter or electrical
plant provided by it. Accordingly, MSEDCL is entitled to recover the following
charges related to meters:
a. Cost of the meter in case the meter is purchased from the Distribution
Licensee
b. Replacement in case of lost/burnt meter
c. Hire charges for the meter
As per Regulation 14.1.3 of MERC Supply Code Regulations 2005, a
consumer of a distribution licensee can purchase a meter from distribution
licensee or from any supplier of correct meter in accordance with specification
laid down by CEA.
In recent years metering technology has given new dimensions to billing
practiced by Distribution Companies. Metering is no longer limited to the
conventional application of billing alone. It also provides useful information for
Analytics, Pricing mechanisms, revenue protection, Demand forecast, Energy
management etc. Due to obsolescence in metering technology and for easy
facilitation of billing data transfer MSEDCL has adopted new metering
technologies.
MSEDCL submits that it is aiming to adopt innovative metering technologies to
improve billing efficiency and cut down costs & time lags. It is submitted that
MSEDCL
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the new metering technologies are available with low cost in bulk procurement
and due to competition in market.
Major adopted innovations:
(a) Radio Frequency Meters:
MSEDCL has adopted RF technology based metering in order to avoid human
error in meter reading, data punching, data validation and manipulation in
reading by meter reader. The meter reading of large quantity of meters can be
taken by reader from the distance.
(b) Smart Meters:
In order to improve billing efficiency and in compliance to National Tariff Policy,
2016 MSEDCL has adopted smart metering solutions. Smart meters provides
for time of use feature, internal connect and disconnect switches with two way
communication capacity and for remote diagnosis. Smart meter supports both
pre-paid and postpaid mode.
(c) CT Embedded Meters: MSEDCL has adopted CT embedded meters in place
of traditional metering with external CTs. Installations with LT CT operated
meters are prone to theft of energy through reverse connection of CTs and
non-sealing of metering cabinets and terminal covers. CT embedded meters
has advantage of compact size and easy installation and no scope for
reversal of connection.
Most benefits are articulated in terms of improvements or cost savings.
Benefits can be quantifiable (tangible) and non-quantifiable (intangible). Major
Benefits of new metering technologies are listed as below:
Operational Benefits
- Meter Reading Automation;
- Operational Efficiencies in field and Meter
services;
- Reduction in unaccounted Energy;
- Operational Efficiencies in Billing and
Customers Management;
- Improvements in capital spend efficiency.
Quantified
- Enhanced Customer Service;
Customer/societal
- Billing Accuracy Improvement;
Benefits
- Reduced Consumption on Inactive Meters;
- Informed Decisions on Energy Usage;
MSEDCL
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425
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Additional
customer/societal
benefits
-
Environmental Preservation through Reduced
Peak-Time Usage
Enhanced Customer Convenience;
Increased Safety for Meter Readers and Field
Services Personnel
Accordingly, MSEDCL proposes following:
Sr.
No.
1
2
3
3
4
A
B
C
Type
Proposed Cost (Rs)
Single Phase
5-30 A 6 LoWPAN RF Meter without enclosure
10-60A Smart Meter (including GPRS
communication Module) as per IS:16444 Part-I
Three Phase
10-40 A 6 LoWPAN RF Meters without enclosure
10-60 A Smart Meter (including GPRS
communication Module) as per IS:16444 Part-I
LT-CT Operated Three Phase Metering Unit
250/5 A Meter with CTs & MCCB
40-200 A CT embedded Meters
LT-CT Operated Three Phase Smart Meter
(including GPRS Communications Module) as per
15: 16444 Part-2 with Accuracy Class 0.5 S and
current rating of -/5 A.
Supporting CTs and MCCB for LT-CT Operated
three phase Smart meters as above
H.T. ToD Meter
5 A rating with 0.5 s accuracy class
1 A rating with 0.5 s accuracy class
1A & 5A rating with 0.2 s accuracy class
H.T. Metering cubical including C.T & P.T
11 kV
22 kV
33 kV
820
2610
1520
3790
22500
13840
3570
18720
2420
2650
5930
85000
130000
190000
Notes:
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January 20
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1. In case consumer opts to purchase the meter, metering Cabinet/ cubicle from
MSEDCL, the security for the price of the meter, metering Cabinet/ cubicle in
accordance with the provisions of clause 14.1.1 of MERC Regulation, 2005 will
not be applicable.
2. In case of Lost & Burnt Meter & metering Cabinet/ cubicle, the ‘Installation
Testing Fees’ will be recovered from the consumer as per approved SoC.
3. Meter box will be provided by MSEDCL at its own cost.
4. The GST will be levied extra as per applicable rates.
19.4 Hiring Charges:
MSEDCL submits that stated that Regulation 14.1.2 of MERC (Electricity Supply
Code and Other Conditions of Supply) Regulations, 2005 specifies as under:
"14.1.2 The Charges for hiring of meters by a consumer shall be in accordance
with the approved schedule of charges under Regulation 18."
MSEDCL submits that in case the consumer opts for hiring the meter as per
Section 45 of the EA 2003 and Regulation 14.1.2 of MERC (Electricity Supply
Code and Other Conditions of Supply) Regulations, 2005 then such facility needs
to be granted.
MSEDCL has proposed the hire/rent charges for the meter based on the annual
depreciation @20% per annum.
Sr.
No.
1.
a.
b.
2.
a.
Particulars
LT Single Phase
5-30A 6LoWPAN RF
Meter without
enclosure
10-60A Smart Meter
(including GPRS
communication
Module) as per
IS:16444 Part-I
LT Three Phase
10-40A 6LoWPAN RF
Meters without
enclosure
MSEDCL
Material
Cost
(Rs.)
Annual Cost
Considering
Life of 5
Years
(Depreciated
@20%)
Charges
per
month
(Rs.)
Proposed
Rent (Rs/
Connection/
Month)
820
164
14
15
2610
522
44
45
1520
304
25
25
January 20
427
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No.
b.
3.
4.
5.
Particulars
10-60A Smart Meter
(including GPRS
communication
Module) as per
IS:16444 Part-I
LT 40-200A CT
embedded Meters
LT 250/5A CT
Operated Meter with
CTs & MCCB
LT-CT Operated
Three Phase
Smart Meter
(including GPRS
Communications
a. Module) as per
15:16444 Part-2
with Accuracy
Class 0.5S and
current rating of /5 A.
Supporting CTs
and MCCB for LTCT Operated
b.
Three Phase
Smart Meter as
above
4.
Material
Cost
(Rs.)
Annual Cost
Considering
Life of 5
Years
(Depreciated
@20%)
Charges
per
month
(Rs.)
Proposed
Rent (Rs/
Connection/
Month)
3790
758
63
65
13840
2768
231
235
22500
4500
375
375
3,570
714
59.50
60
18,720
3,744
312
315
40
40
44
45
99
100
HT ToD Meter
5.
5A rating with 0.5 s
2420
484
accuracy class
1A rating with 0.5 s
2650
530
accuracy class
1A & 5A rating with
5930
1186
0.2s accuracy class
HT Metering cubical including C.T & P.T
a.
For 11 kV Supply
85000
17000
1417
1420
b.
For 22 kV Supply
130000
26000
2167
2170
c.
For 33 kV Supply
190000
38000
3167
3170
a.
b.
c.
MSEDCL
January 20
428
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
19.5 Miscellaneous and General charges
19.5.1 MSEDCL submits revision in following miscellaneous and general charges
along with rationale behind the proposal:
19.5.2 Application Registration and processing Charges:
a) A consumer can submit application of provision of electric supply,
sanction of additional load, shifting of service etc. As per Regulation 4.1 (ix)
of the MERC Supply Code Regulations, a distribution licensee can recover
fees for processing such applications.
b) After receipt of application form, distribution licensee is primarily
required to conduct following activities


Verification and scrutiny of existing location of applicant;
Scrutiny of past dues, if any;

Existing facility / infrastructure at consumer premises (service line, meter
board etc.);


Provision of electrical network and equipment;
Verification of compliances from consumer (payment of charges and
appropriate wiring / distribution).
c) MSEDCL incur the cost to conduct the above mentioned activities.
Apart from release of new connection, MSEDCL is require to process
applications related to change of name, reduction or enhancement of load,
shifting of service/line, change of category, disconnection request and any
certificates (such as certificate of no installation which required for NonAgricultural land, No dues certificates etc.). For carrying out these activities
require man power and associated facilities. Further, it is necessary to
create minimum barrier to discourage frivolous or non-serious consumers.
d) It is pertaining to note that the schedule of charges determined in present
proceedings will be applicable till FY 2024-25. Hence it is necessary to
escalate the charges considering trend in inflation. For devising escalation
factor, MSEDCL has considered the five year average WPI.
MSEDCL
January 20
429
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Year
Annual
Increase
WPI
236.00
FY 2013-14
250.83
FY 2014-15
265.00
FY 2015-16
275.92
FY 2016-17
284.42
FY 2017-18
299.92
FY 2018-19
Average from FY 14-15 to
FY 18-19
6%
6%
4%
3%
5%
4.80%~5%
Following table shows the proposed application registration & processing
charges to be recovered:
Sr. No.
1
2
3
4
5
Category
Single Phase
Three Phase
LT (Agriculture)
HT Supply up to 33 kV
EHV Supply
Existing SoC
approved by
MERC in Case
No.195 of 2017
Rs
100
150
150
2400
4800
Proposed
charge
Rs
110
160
160
2500
5100
19.6 Installation Inspection & Testing Fees:
a) Regulation 9 of MERC (Electricity Supply Code and Other Conditions of
Supply) Regulations, 2005 provides that the wiring of consumer’s premises
shall conform to the standards specified in the Indian Electricity Rules, 1956.
As per Rule 47, it is the duty of the supplier to inspect and test applicant’s
installation before connecting the supply. As per Rule 53(1), the cost of first
inspection and testing of a consumer’s installation carried out in pursuance
of the provisions of Rule 47 shall be borne by the supplier and the cost of
every subsequent inspection and test shall be borne by the consumer.
b) The first testing of a consumer’s installation will be free of cost as done
currently. For every subsequent inspection and test, following rates have
MSEDCL
January 20
430
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Provisional True Up For FY 2019-20 and
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Main Petition
been proposed after application of escalation factor devised above.
Existing SoC
approved by MERC
Proposed
Sr.
in Case No.195 of
charge
Category
No.
2017
Rs
Rs
LT Installations
1
Single Phase
100
110
2
Three Phase
200
220
HT Installations
3
Agricultural
550
600
4
All
categories
750
except Agricultural
5
Renewable
Energy
Installations with
Net
Metering
features
Single Phase
500
Three Phase
1000
19.7 Reconnection Charges:
19.7.1 Considering the practice followed by MSEDCL in disconnection of supply
pursuance to default of payment, it is proposed to reframe reconnection
charges based on nature of disconnection. Following re-connection charges
have been proposed:
Sr.
No.
1
Existing SoC
approved by MERC
in Case No.195 of
2017
Rs
Category
Low Tension
Re-connection at Meter incoming
main:
Single Phase
MSEDCL
January 20
100
Proposed
charge
Rs
200
431
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No.
2
2
3
Category
Three Phase
At overhead distributing main:
Single Phase
Three Phase
Re-connection in underground cable
works
Single Phase
Three Phase
Re-installation of Cut out, Meter &
Service cable
High Tension supply
Existing SoC
approved by MERC
in Case No.195 of
2017
Rs
200
Proposed
charge
Rs
400
100
200
300
500
200
200
300
500
1000
800
3000
19.8 Changing Location of the Meter within the same premises (shifting of
service is not required) at consumer’s request:
19.8.1 MSEDCL is hereby submitting different charges for shifting of meter in case of
single phase supply and three phase supply. The said bifurcation is required as
three phase meter shifting requires more labor and sundry items than single
phase meter shifting.
Sr. No.
1
2
Category
Single
Phase
Three Phase
Existing SoC approved
by MERC in Case No.
195 of 2017
Rs
350
Proposed
charge
Rs
400
1000
19.9 Shifting of services/Poles/Lines (Utility), if carried out only on consumer’s
request:
19.9.1 It is submitted that the consumer’s request may not be limited to shifting of a
single meter within the same meter cabin or another meter box, but may also
require shifting of the entire meter box along with its service cable or shifting of
MSEDCL
January 20
432
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
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Main Petition
poles. This may involve partial or complete removal of the existing service
cable. It may also involve relocation of the meter along with the service cable,
fuse unit and other safety arrangements. In case of underground cable, if the
cable is to be removed, it will require excavation which may be in private
property or on public roads. Accordingly, reinstatement charges become
applicable. Thus, additional manpower and resources are required which would
vary from case to case considering consumer requirement and site conditions.
19.9.2 Further, due development work, many consumers approach the MSEDCL to
shift the poles in his premises. In many cases consumers are approaching
MSEDCL to shift Poles/Lines (Utility) to secure non-agricultural (NA) land
status. Present schedule of charges do not address this scenario, hence
following is proposed. It is submitted that for such cases charges will be
recovered based on approved cost data of MSEDCL.
Sr. No.
Category
1
2
Single Phase
Three Phase
Proposed
charge
Rs
Actuals
Actuals
19.9.3 In case MSEDCL permits an applicant to carry out the works through a
Licensed Electrical Contractor (LEC), a rate of 1.30 % of the sanctioned
charges based estimate will be applicable towards supervision charges.
19.9.4 The Commission in its Order in Case No.83 of 2014 dated 25 July, 2014 in the
matter of Petition filed by Tata Power Company for review of Order dated 28
December, 2012 in Case No. 47 of 2012 in the matter of its Schedule of
Charges to the extent of charges for (a) Service Connection for ‘Switchover’
consumers (b) Service shifting and Meter shifting on the consumer’s request
accorded its approval to recover actual expenditure incurred in shifting of
services.
19.10 Testing of Meters/Equipment
19.10.1
MSEDCL submits that it has proposed charges for testing of meters
MSEDCL
January 20
433
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
considering the increase in labour cost, testing equipment cost, maintenance
cost, duration of testing, etc.
Further, MSEDCL states that testing charges proposed for single phase (1Ph.),
three phase (3Ph), LTCT Operated (3ph), HT TOD & ABT/Apex meter having
different applicable IS. The testing charges have been proposed based on type
of meter, duration for testing, and its accuracy class. Hence, the rates for testing
charges are varying accordingly. Also, considering the costly automatic
equipment service maintenance, electricity cost and all other costs, the
proposed rates revised. The consumers do have option to test meters at TQA
labs other than MSEDCL. In order to keep rates competitive, MSEDCL has not
proposed any revision in testing charges at TQA labs.
19.10.2
Further, MSEDCL carry out testing of Distribution Transformers of
consumers. Hence, charges for testing of Distribution transformers are also
proposed.
Sr.
No.
1.
a.
b.
c.
d.
e.
f.
g.
Existing
Particulars
Charges
(Rs.)
Testing of meters and metering equipment
Single Phase
200
Poly-phase Meter/ RkVAh Meter
800
LT MD Meters (With/ Without CTs)
1,000
Tri-vector Meter
1,000
LT Metering Equipment like CT/PT
1,000
per Unit
HT Metering equipments like CT/PT
3,000
per Unit (up to and including 33kV)
HT & EHV Metering equipments like
5,000
CT/PT per Unit (above 33kV)
Proposed
Charges (Rs.)
250
1,000
1,200
1,200
1,000
3,000
5,000
Net Meter
i.
i.
Single Phase
-
500
ii.
Three Phase LT CT operated
-
2,200
MSEDCL
January 20
434
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Sr.
No.
Particulars
Existing
Charges
(Rs.)
Proposed
Charges (Rs.)
Bidirectional
Three
Phase
HT
ToD
2,400
Bidirectional
Testing of Meters at TQA Laboratories
Single Phase
2,000
2,000
Three Phase
9,500
9,500
LT CT Operated Meters
10,000
10,000
HT ToD Meters
15,000
15,000
ABT/Apex Meters
20,000
20,000
Summator meter – module
Two module + Summator
46,500
Three module + Summator
68,200
Four module + Summator
89,990
Calibration of Testing Equipments of Other Utilities’ request at TQA
Laboratories
Active/ Reactive Energy
400 per Load
Point
Active/ Reactive/ Apparent Power
Voltage
Current
500 per Load
Point
Power Factor
Frequency
Cable Testing and fault Detection
33/11KV cable fault location
12,000
33/11KV cable Hipot
4,500
33/11KV Cable Identification
4,500
33/11KV Cable fault Identification
4,500
LT U.G. Cable Fault location and
4,500
identification
Distribution Transformer
3,000
iii.
2.
a.
b.
c.
d.
e.
3.
a.
b.
c.
4.
a.
b.
c.
d.
e.
f.
5.
a.
b.
c.
d.
e.
6.
MSEDCL
January 20
435
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
19.11 Administrative Charges for Cheque Bouncing:
19.11.1
MSEDCL is not seeking any change in administrative charges for
Cheque bouncing.
19.12 Schedule of Charges for Open Access & all Generators
19.12.1
MSEDCL has proposed following Schedule of Charges for “processing
fees per application and operating charges per transaction/permissions” for
non-consumers of MSEDCL as below:
Load Requisitioned
Processing Fees
per Application
(Rs.)
Upto 1 MW
15,000
More than 1 MW & up to 5 MW
25,000
More than 5 MW & up to 20
MW
45,000
More than 20 MW & up to 50
MW
60,000
More than 50 MW
75,000
Operating Charges per
transaction/Permissions(Rs)
20,000
40,000
19.13 MSEDCL’s reasoning for proposed Charges:
a) Processing Fees:

As per MERC Distribution Open Access Regulation 2016, an Open Access
Consumer can avail open access from multiple generators and multiple
sources. Thus no of applications are increased,

MSEDCL has developed online system for submission of applications for
availing open access.

The no of consumers availing short term open access are more, the
consumers apply every month for STOA and upload the required
documents in the online system having 50 to 100 MB capacity. Thus
MSEDCL have to purchase additional storage space to save all the
documents every month in the online system.
MSEDCL
January 20
436
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition

A separate IT System is developed for proper operation of the online
system for submission and processing of open access applications.

MSEDCL has developed online system for paying the processing fees with
the applications. Thus MSEDCL has to pay service charges to service
providers of online payment system.

Issuance of periodical open access permissions: Maintaining OA
Consumer Records and recording change of name/change of ownership, if
any.
b) Operating Charges:
 A multiple monthly joint meter reading is taken for consumers availing open
access from multiple generator and multiple sources;

Forwarding the metering data to the consumer end through electronic
media;


Separate IT system and IT staff for processing of open access bills;
Providing vehicle for monthly joint meter reading. The rate of diesel is
almost doubled;
Deputation / deployment of Engineers and staff;



Testing of generation meter;
Development in open billing software as per changes in Regulations and
MERC various Orders;



Monitoring of daily schedule of open access consumers;
Downloading and checking of schedules from WRLDC, MSLDC and
Exchange website for billing;
Compilation of consumer wise, date wise monthly schedule;

Purchase of Meter Reading Instruments and Laptops for meter readings.
19.14 Applicable Taxes:
19.14.1
MSEDCL submits that Goods and Service Tax will be levied extra as per
applicable rates on aforementioned charges.
19.14.2
Further, in case any taxes are made applicable or introduced by any
Competent Authority in future, MSEDCL request to allow recovery of such
charges from the respective consumers for services for which Schedule of
Charges are approved.
MSEDCL
January 20
437
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
20 COMPLIANCE TO THE DIRECTIVES IN CASE NO. 195 OF 2017
20.1 Background
20.1.1 MSEDCL submits that the Hon’ble Commission in its Mid Term Review Order dated 12th September 2018 (Case No 195 of
2017) has given various directives to MSEDCL having different timelines for submission of their compliances. The same along
with its compliances are reproduced as below:
Order Ref. No. and
Directives of MERC in Order 195
Compliance Status
Topic
of 2017
8.6.7:
Feeder-based Out of 4901 Agricultural feeders with MSEDCL submits that as on 25th November 2019, out of the
Metering
with
AMR AMR, only 1021 feeders are active total 5405 Ag feeders, 5228 nos. have been upgraded with
facilities
and
the
rest
are
having AMR facilities. MSEDCL is rigorously taking up the process to
communication linkage problem.
install AMR for the balance 177 nos.
MSEDCL shall keep all the feeder MSEDCL also submits that the feeder input data for all the
AMR active and start uploading data feeders (including Ag feeders) is made available at MSEDCL
on its website.
website on following path:
Consumer Portal > Operational data > Feeder Input Data
(HTTPS://CONSUMERINFO.MAHADISCOM.IN/FEEDERDATA/INDEX.PHP)
9.23.11 kVAh Metering
MSEDCL to educate the consumers MSEDCL submits that it has taken up necessary steps to
and take all necessary steps to ensure smooth rollout of kVAh billing. Consumer awareness
ensure that all the consumers are programs were conducted. FAQs on kVAh billing were
billed by kVAh method from the next uploaded on the website and many interactive sessions on the
MSEDCL
January 20
438
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
Order Ref. No. and
Topic
MSEDCL
Directives of MERC in Order 195
of 2017
MYT i.e. from 1st April 2020.
Compliance Status
same were conducted. The consumer awareness programs
received many interest from the consumers and were
successfully coordinated.
The next step towards kVAh metering was meter replacement.
MSEDCL has already initiated meter replacement and the
same for HT consumers is planned to be completed by January
2020. After completing HT meter replacement, MSEDCL will
rigorously take up LT meter replacement too. The status of the
same can be communicated to the Hon’ble Commission during
the next MTR process.
The FAQs have been annexed to this Petition as Annexure 6.
January 20
439
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
21 PRAYERS TO THE HON’BLE COMMISSION
21.1.1 MSEDCL most respectfully prays to the Hon'ble Commission:
1. To admit the MYT Petition as per the provisions of the MERC (MYT)
Regulations 2019 and consider present Petition for further proceedings before
Hon’ble Commission;
2. To approve the total recovery of Aggregate Revenue Requirement and revenue
gap for FY 2017-18 to FY 2024-25 along with other claims including Regulatory
Assets as proposed by MSEDCL;
3. To allow the carrying cost on the proposed recovery required during the control
period;
4. To approve mechanism for recovery of computed revenue gap along with
carrying cost and Tariff Schedule considering the Tariff Design principles and
other suggestions proposed by MSEDCL;
5. To allow to charge 60% of approved fixed charges for single shift HT Industrial
consumers as proposed by MSEDCL;
6. To allow the revision in definition of Billing Demand as proposed by MSEDCL;
7. To allow kVAh based billing for HT category consumers;
8. To allow a rebate for incremental consumption to HT consumers of selected
categories as proposed by MSEDCL;
9. To consider the incentives/rebates proposed as part of ARR;
10. To rationalize the incentives and penalties as proposed by MSEDCL;
11. To approve the revision in Load Factor Formula as proposed by MSEDCL;
12. To approve the revision in the Load Factor Incentive with a ceiling of 7.50%;
13. To approve the revision in ToD Charges as proposed by MSEDCL;
14. To approve the levy of Grid Support charges on generated energy for Net
Metering systems as proposed by MSEDCL;
15. To approve the Additional Fixed/Demand Charges along with CSS for Grid
Connected Renewable Energy Generating Systems connected behind the
Consumer’s meter, and not opting for either Net Metering Arrangement or Net
Billing Arrangement as proposed by MSEDCL;
16. To approve the kVA based Fixed Charges for 3 phase consumers having loads
less than 20 kVA as proposed by MSEDCL;
17. To allow the levy of slab wise charges to LT three phase consumers based on
the actual demand recorded;
MSEDCL
January 20
440
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Main Petition
18. To allow MSEDCL to retain the transmission charges collected from partial
Open access consumers;
19. To approve levy of harmonics penalty through additional charge equivalent to
5% of Variable Charges (Wheeling Charges plus Energy Charges) for HT
Industrial and HT Commercial consumers;
20. To approve Cross Subsidy Surcharge and all such other charges including
wheeling charges and wheeling losses for Open Access consumers as
proposed for the Control Period;
21. To approve the Additional Surcharge for Open Access Consumers irrespective
of Source i.e. Captive Power Plants, IPP, RE based power plants etc. in
addition to the conventional open access consumers but exempting CPPs
existing prior to FY15-16, originally set up the plant for self-consumption and
still continuing the same arrangement of captive use as proposed by MSEDCL
22. To allow revision in standby charges for consumers having CPP;
23. To make provision for mandatory standby arrangement by SEZ and other
Deemed Licensees;
24. To allow the slab wise fixed charges for Residential category consumers as
proposed by MSEDCL;
25. To approve the suggested categorization for different type of activities as
proposed by MSEDCL;
26. To approve the schedule of charges as proposed by MSEDCL;
27. To approve the CAPEX and Capitalisation as submitted by MSEDCL;
28. To approve the OPEX as proposed by MSEDCL;
29. To grant any other relief as the Hon'ble Commission may consider appropriate;
30. To 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;
31. To condone any error/omission and to give opportunity to rectify the same;
32. To permit MSEDCL to make further submissions, addition and alteration to this
Petition as may be necessary from time to time;
(Satish Chavan)
Director (Commercial)
MSEDCL
MSEDCL
January 20
441
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Annexures
Annexure 1: Regulatory Formats (n Soft Only Excel Format)
MSEDCL
January 20
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Annexures
Annexure 2: Annual Accounts for FY 2017-18
MSEDCL
January 20
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Annexures
Annexure 3: Annual Accounts for FY 2018-19
MSEDCL
January 20
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Annexures
Annexure 4: Interest Rate for interest paid on SD for FY 2017-18
MSEDCL
January 20
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Annexures
Annexure 5: Interest Rate for interest paid on SD for FY 2018-19
MSEDCL
January 20
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Annexures
Annexure 6: FAQs regarding kVAh Billing
MSEDCL
January 20
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Annexures
Annexure 7: Power Point Presentation on kVAh Billing
MSEDCL
January 20
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Annexures
Annexure 8: Investment Proof for Contingency Reserves
MSEDCL
January 20
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Annexures
Annexure 9: Letter to MERC highlighting issues pertaining to SEZ
MSEDCL
January 20
Final True Up For FY 2017-18 & FY 2018-19,
Provisional True Up For FY 2019-20 and
Multi Year Tariff For FY 2020-21 to FY 2024-25
Annexures
Annexure 10: Detailed Cost Estimation Sheet for Schedule of Charges
MSEDCL
January 20