In exercise of the powers conferred on it by
Section 45, 61 and 62 read with Section 181(zd) of the Electricity Act 2003 (36
of 2003), the Chhattisgarh State Electricity Regulatory Commission hereby makes
the following Regulations related to terms and conditions for determination of
tariff. CHAPTER 1
PRELIMINARY (1)
These Regulations shall be called 'The Chhattisgarh
State Electricity Regulatory Commission (Terms and Conditions for Determination
of Tariff) Regulations, 2006. (2)
These Regulations shall come into force from the
date of their publication in the official gazette of the Government of
Chhattisgarh. (3)
The Regulations shall extend to the whole of the
State of Chhattisgarh. (1)
These Regulations shall apply in all cases where
electricity tariff is to be determined by the Commission based on capital cost. (2)
However, where tariff has been determined through a
transparent process of bidding in accordance with the guidelines issued by the
Central Government, the Commission shall adopt such tariff, as laid down in
section 63 of the Act. (1)
In these Regulations, unless the context otherwise
requires, (a)
"Act" means the Electricity Act, 2003 (36
of 2003). (b)
"Bank rate" means the bank rate of
Reserve Bank of India as on 1st April of the relevant year. (c)
"Central Commission" means the Central
Electricity Regulatory Commission. (d)
"Commission" means the Chhattisgarh State
Electricity Regulatory Commission (CSERC). (e)
"Contracted Power" means the power in MW,
which the distribution licensee has agreed to wheel on his distribution system. (f)
"Date of operation" in case of a
distribution licensee, means the date of charging his electric lines or
substations to its declared voltage level. In cases where line(s)/substation(s)
are declared ready for charging but the licensee is not able to charge for
reasons not attributable to the licensee. 'date of operation' in respect of
such line(s)/substation(s) shall be reckoned as seven days after the
line(s)/substations(s) have been declared ready for charging. (g)
"Declared Voltage" means the voltage as
specified under Rule 54 of the Indian Electricity Rules, 1956. (h)
"Distribution loss" means the energy loss
in the distribution system of a licensee. (i)
"Licensee" means a person who has been
granted a license under section 14 and includes a person deemed to be a
licensee under the same Section of the Act. (j)
"SLDC" means the State load despatch
centre. (k)
"State Government" means the Government
of Chhattisgarh. (l)
"Tariff" means the schedule of charges
for bulk supply, wheeling and retail supply of electricity together with terms
and conditions for application thereof. (m)
"Tariff period" means the period for
which tariff and/or the Annual Revenue Requirement is determined by the
Commission under these Regulations. (n)
"Year" means the financial year ending on
31st March, and (i)
"Current Year" means the year in which
the statement of annual accounts or application for determination of tariff is
filed; (ii)
"Ensuing Year" means the year next
following the current year; (iii)
"Previous Year" means the year
immediately preceding the current year. (2)
Words or expressions used in these Regulations and
not defined shall bear the same meaning as in the Act and the Regulations made
by the Commission. CHAPTER 2
Tariff for Generating Company and Transmission
Licensee The Generating company/ Transmission licensee shall
make an application every year for determination of tariff (tariff petition) in
the manner and in the formats as laid down in the CSERC (Details to be
furnished by licensee or generating company for determination of tariff and
manner of making application) Regulations, 2004. The formats may be modified by
the Commission from time to time. (1)
The Commission shall be guided by the principles as
laid down in section 61 (a) to (h) of the Act, National Electricity Policy,
National Tariff Policy and follow the principles and methodologies specified by
the Central Commission in the Central Electricity Regulatory Commission (Terms
and Conditions of Tariff) Regulations, 2004, in the determination of tariff for
Generating company (thermal and hydel) and for a Transmission licensee. (2)
The Commission may follow relaxed norms in
determination of tariff including the norms of target availability, plant load
factor etc., than those contained in the Central Commission Regulations for the
existing generating stations, based on the size and age of the stations and
historical performance records etc. (3)
In pursuance of the National Electricity Policy and
the provisions of Section 61(h) of the Act, the Commission may also follow
relaxed norms in determination of tariff of electricity generated by the method
of co-generation and generation of electricity from renewable sources of
energy. CHAPTER 3
Tariff for Distribution Licensee A distribution licensee shall make an application
every year for determination of tariff (tariff petition) in the manner and in
the formats as laid down in the CSERC (Details to be furnished by licensee or
generating company for determination of tariff and manner of making
application) Regulations, 2004. The formats may be modified by the Commission
from time to time. The Commission shall be guided by the principles as
laid down in section 61 (a) to (h) of the Act, the National Electricity policy
and National Tariff Policy in the determination of tariff for the distribution
licensee. (1)
The licensee shall submit restricted demand (in MW)
and unrestricted demand (in MW) for all consumer categories together and sale
of electricity (in MU) for different categories of consumers in his area of
supply for the previous year and forecasts for the current year and the ensuing
year. The forecasts for category-wise sale of electricity shall generally be
worked out on the basis of 5 years' CAGR. (2)
The sales forecast for unmetered categories shall
be validated with norms approved by the Commission on the basis of a proper
study carried out by the licensee. (3)
The Commission shall examine the forecasts for
their reasonableness based on growth in the number of consumers, consumption,
losses and demand of electricity in previous years and anticipated growth in the
next year and any other factor, which the Commission may consider relevant and
approve the sales forecast with such modifications as deemed fit. (4)
Sale of electricity, if any, to electricity traders
or other distribution licensees shall be separately indicated. (5)
The distribution licensee shall also indicate
category wise open access customers. The demand and energy wheeled for them
shall be shown separately for (a)
supply within its area of supply and (b)
supply outside its area of supply. (1)
On the basis of approved sales forecast, the
licensee shall work out the requirement of monthly sales to different consumer
categories, taking into account seasonal variations in demand in a year. (2)
The licensee shall monitor the sales to different
consumer categories and ensure that supply to any category of consumer is not
unduly restricted. (3)
If for any abnormal situation like drought, supply
to any category of consumer is to be varied, the licensee shall obtain approval
of the Commission. (1)
The distribution loss at a particular voltage level
shall be the difference between the energy injected into the distribution
system at that voltage level and the sum of energy sold to all its consumers at
that level and also energy delivered to voltage level below that particular
level. Energy sold shall be the sum of metered sales and assessed unmetered
sales based on approved norms. However, the licensee may submit the
distribution loss for the total distribution system. (2)
To set the base line of distribution loss, the
Commission may either require the licensee to carry out proper loss estimation
studies under its supervision, or initiate a study itself. (3)
The study shall segregate losses into technical
loss (i.e., ohmic/core loss in the lines, substations and equipments) and
commercial loss (i.e., unaccounted energy due to metering
inaccuracies/inadequacies, pilferages of energy etc.), supply voltage-wise and
consumer category-wise. (4)
The Commission shall approve a realistic and
achievable loss target for the ensuing year based on the study. In the absence
of such study, the Commission shall set such target on the basis of information
on line losses submitted by the licensee as it considers reasonable. (5)
The Commission may also fix targets, both long-term
and short-term, for loss reduction to bring down the loss level gradually to
acceptable norms of efficiency. (6)
To generate local consensus for effective action
for better governance, area/ locality specific surcharge for greater ATC loss
could be considered. The Commission may also encourage suitable local area
based incentive and disincentive schemes for the staff of the utilities linked
to the reduction of losses, as per the provision of para 8.2.1(2) of the
National Tariff Policy. (7)
The distribution licensee shall be allowed to share
a part of the financial gains derived from achieving higher loss reduction
vis-a-vis the target fixed by the Commission. The Commission shall decide the
extent of share. (8)
The distribution licensee shall bear the losses on
account of its failure to achieve the target set by the Commission. (1)
Based on the estimated energy sales forecast by the
licensee and the approved distribution losses for the ensuing year and the
transmission losses approved by the Commission for the transmission licensee,
the requirement of electricity to be purchased shall be worked out. (2)
The Commission shall scrutinize and approve the requirement
for purchase of power with such modifications as deemed fit for the ensuing
year. (1)
In case of a new distribution line or substation
commissioned or capacity expanded on or after 1.4.2005, the debt and equity in
the capital cost of such a project shall be considered in the ratio of 70:30
for the purpose of determination of tariff. Provided that where equity employed is more than
30%, the amount of equity for the purpose of tariff shall be limited to 30% and
the balance amount shall be considered as loan. The interest rate applicable on
the equity above 30%, treated as loan, has been specified in clause 20. Provided that where actual equity employed is less
than 30%, the actual equity shall be considered. Provided further that the Commission may in
appropriate cases consider equity higher than 30% for determination of tariff,
where the distribution company is able to establish to the satisfaction of the
Commission that the deployment of equity higher than 30% was in the interest of
general public. (2)
In case of investments made prior to 1.4.2005 for
the existing distribution system, the debt-equity ratio shall be accepted on
the basis of audited accounts. In case the audited accounts for the year
2004-05 are not available, the distribution licensee shall submit the unaudited
accounts for that year along with the latest audited accounts for any of the
preceding years available. (1)
Subject to prudence check by the Commission, the
actual capital expenditure as on the date of operation shall form the basis for
determination of tariff. (2)
The capital cost shall include capitalised initial
spares upto 1.5% of the original project cost. (3)
Where power purchase agreement or transmission or
wheeling agreement provides for a ceiling on the capital cost, the capital cost
to be considered shall not exceed such ceiling. (4)
In case of existing distribution system, the
capital cost would be based on the audited accounts. In case the audited
accounts are not available, it will be decided based on the provisional
accounts. (5)
Scrutiny of the cost estimates by the Commission
shall be with regard to the reasonableness of the capital cost, financing plan,
interest during construction, use of efficient technology, and such other
matters for determination of tariff. (6)
Swapping of equity and loans shall be permitted,
provided it does not affect the tariff adversely and the benefits accruing from
such swapping is shared between the licensee and the consumers in the year
following the year of such swapping, in a ratio as may be specified by the
Commission. (7)
Restructuring of capital cost, in terms of relative
share of equity and loan, shall be permitted provided it does not affect the
tariff adversely in the subsequent period. Any benefit from such restructuring
shall be passed on to the consumers in a ratio as may be specified by the
Commission. (8)
The licensee shall file in accordance with the
guidelines issued by the Commission, a detailed capital investment plan along
with the financing plan for the ensuing year for meeting the requirement of
load growth, reduction in distribution losses, improvement in quality of
supply, reliability, metering, consumer services etc. The approved capital
investment plan and the cost corresponding to the approved plan shall be taken
into account in assessing the revenue requirement. (1)
The following capital expenditure within the
original scope of work actually incurred, after the date of operation, may be
considered by the Commission, subject to prudence check: (a)
Deferred liabilities. (b)
Works deferred for execution. (c)
Procurement of initial spares included in the
original project costs, subject to the ceiling norm laid down in clause 13. (d)
Liabilities to meet award of arbitration or
compliance of order or decree of a court. (e)
Expenditure incurred on account of change in law. (f)
Any additional works/ services, which have become
necessary for efficient and successful operation of a distribution system but
not included in the original capital cost. Notes- (I)
Any expenditure admitted on account of committed
liabilities within the original scope of work and the expenditure deferred on
techno-economic grounds but falling within the original scope of work shall be
serviced in the normative debt-equity ratio specified in clause 12. (II)
Any expenditure on replacement of old assets shall
be considered after writing off the gross value of the original assets from the
original capital cost. Capital expenditure on replacement of old assets shall
be allowed to the extent of total capital expenditure to be incurred less the
scrap value of the old assets which will be available to the licensee. (III)
Any expenditure admitted by the Commission for
determination of tariff on account of new works, not in the original scope of
work, shall be serviced in the normative debt-equity ratio specified in clause
12. (IV)
Any expenditure admitted by the Commission for
determination of tariff on renovation, modernization, life extension and restoration
of assets damaged due to natural calamities shall be serviced on normative
debt-equity ratio specified in clause 12 after writing off the original amount
of the replaced assets from the original capital cost. (2)
The impact of additional capitalization on tariff
may be considered once in a tariff period. Working capital shall consist of: (a)
Operation and maintenance expenses for one month. (b)
Maintenance spares for 2 months based on annual
requirement considered at 1% of the gross-fixed assets at the beginning of the
year. (c)
Receivables equivalent to 60 days' average billing
of consumers. (d)
Receivables equivalent to 60 days' of wheeling
charges from open access customers. Annual Expenses (1)
The licensee shall procure electricity in
accordance with provisions of the Regulations/Guidelines made by the Commission
in this regard. (2)
The cost of power purchased from generating
companies and cost of transmission shall be worked out based on tariff determined
by the Commission for generation and transmission. (3)
The cost of purchase of power from traders and
other licensees shall be considered based on PPAs subject to sub-clause (1)
above. (4)
In case of shortage of power in the short-term, the
licensee may procure electricity from any source at a tariff not exceeding the
highest rate approved by the Commission. (5)
In case of power purchased from co-generation units
and renewable sources of energy, the cost shall be worked out, taking into
account the minimum percentage of energy to be purchased from such sources, as
per the policy approved by the Commission, if any, for such generators. (6)
For the ensuing year the total power purchase cost
for distribution licensee's requirement for sale to its consumers, shall be estimated
on the basis of merit order principle. (7)
SLDC charges, if paid separately in addition to
charges for usage of network, shall be considered as expenses and included in
the power purchase cost for the purpose of tariff determination. (8)
UI charges may be allowed at the average of the
allowed power purchase rates. However, higher costs can also be allowed if the
Commission is satisfied that such power purchase is required to maintain
adequate power supply in the licensee's area. (1)
The operation and maintenance (O&M) expenses
comprise of the employee cost, repairs and maintenance (R&M) costs,
administrative and general (A&G) costs and other miscellaneous expenses
including insurance. The Commission may specify normative O&M expenses for
the base year as certain percentage of the capital cost of the distribution
system and also may specify separate norms for difficult terrain. The base
year, for the purpose of O&M expenses, shall be the tariff year immediately
after the notification of these Regulations. (2)
O&M expenses of assets taken on lease and those
created out of consumer's contributions shall be considered, if the licensee
has the responsibility for its operation and maintenance and bears O&M
expenses. (3)
To arrive at the O&M expenses for the tariff
year, the normative O&M expenses allowed for the base year shall be
escalated on the basis of predetermined indices such as consumer price index,
wholesale price index and other cost drivers such as network growth, energy
sales, growth in consumer, wage revision of the employees of the licensee etc.,
subject to prudence check by the Commission. (4)
Increase in O&M charges on account of war,
insurgency, and change in laws, or such like eventualities may be considered by
the Commission for a specified period. (5)
The licensee shall be allowed to retain the savings
against the permitted O&M expenses. Likewise, the licensee shall bear the
losses if he exceeds the permitted O&M expenses, for that year. (1)
For the purpose of tariff, depreciation shall be
computed in the following manner: The value base for the purpose of depreciation
shall be the historical cost of the assets, i.e. actual expenses limited to
approved /accepted capital cost. Provided that the capital cost of assets created
and works in progress as on 1.4.2005 shall be deemed to be approved; and the
consumers' contribution or capital subsidy/ grant etc. shall be excluded from
the values of assets for the purpose of depreciation. (2)
The approved/accepted cost shall include foreign
currency funding converted to equivalent rupee at the exchange rate prevalent
on the date of foreign currency actually availed. (3)
Depreciation shall be calculated annually as per
straight-line method over the useful life of the asset at the rate of
depreciation laid down in the Appendix to these Regulations. These rates are as
laid down by the CERC (Terms and Conditions of Tariff) Regulations 2004. These
may be amended by the Commission from time to time. (4)
Provided that the total depreciation during the
life of the asset shall not exceed 90% of the original cost of the asset. (5)
On repayment of the entire loan, the remaining
depreciable value shall be spread over the balance useful life of the asset. (6)
Depreciation shall be chargeable from the first
year of operation. In case of operation of the asset for part of the year,
depreciation shall be charged on pro rata basis. The distribution licensee may be permitted an
advance against depreciation (AAD) in addition to allowable depreciation, in
the manner given hereunder: AAD = Loan repayment amount as per clause 20
subject to a ceiling of 1/10th of loan amount as per clause 12 minus
depreciation as per schedule. Provided that Advance Against Depreciation in a
year shall be restricted to the extent the cumulative repayment exceeds
cumulative depreciation up to that year. (1)
Interest and finance charges on loan capital shall
be computed on the outstanding loans, duly taking into account the schedule of
repayment, as per the terms and conditions of relevant agreements of loan, bond
or debenture. The interest rate on the amount of equity above 30%, treated as
loan, shall be the weighted average rate of the loan schemes of the licensee. Provided that interest and finance charges of
renegotiated loan agreements shall not be considered, if they result in higher
charges. Provided further that interest and finance charges
on works in progress shall be excluded and shall be considered as part of the
capital cost. (2)
In case any moratorium period is availed of, the
depreciation allowed in the tariff during the years of moratorium shall be
treated as repayment during those years and the loan capital shall be reduced
to the extent of depreciation, for the purpose of calculation of interest. (3)
Any benefit on account of swapping of loan and
interest on loan shall be passed on to the consumers in such ratio as may be
decided by the Commission. The rate of interest, on working capital computed
as per clause 15, shall be on normative basis. The interest on working capital
shall be on normative basis even when the licensee has not taken working
capital loan from any outside agency or his working capital loan exceeds the
normative figures. Interest charges on security deposits of consumers
with the licensee, shall be considered at the rate as specified in the CSERC
(Security Deposit) Regulations, 2005. The Commission may consider a provision for writing
off of bad and doubtful debts of distribution licensee upto 1% of receivables
subject to actual writing off of bad and doubtful debts in the previous year in
accordance with procedure laid down by the licensee. Lease charges for assets taken on lease by a
licensee shall be considered as per lease agreement, provided the Commission
considers them reasonable. (1)
The Commission may consider provisions for
contingency reserve up to 0.5% of opening gross fixed assets to be invested in
Government securities. The contingency reserve so created shall be utilized to
meet cost of replacement of equipment damaged due to accident under force
majeure conditions. (2)
The interest on such securities shall be added back
to this reserve. (3)
The licensee shall be entitled to draw money from
this reserve only with the prior permission of the Commission. (4)
The Commission may allow a part of the reserve to
be returned back to the consumers at the end of the control period to be
decided by the Commission by way of reduction in the Annual Revenue Requirement. (5)
The amount in this reserve shall not be treated as
part of the equity reserves. In respect of foreign currency loans, not passed on
or swapped as rupee loan, the extra rupee liability towards interest payment
and loan repayment actually incurred in the relevant year shall be admissible;
provided it directly arises out of foreign exchange rate variation and is not
attributable to any lapse of the licensee or its suppliers or contractors. This
variation shall not exceed the exchange rate on 7th day after the due date of
payment. (1)
Income Tax, if any, on the income stream of the
licensed business of the licensee shall be treated as an expense and shall be recoverable
in tariff. However, the tax on any income stream, other than the licensed
business, shall not constitute a pass-through component in the tariff. Tax on
such other income shall be payable by the licensee. (2)
Tax on income, if actually liable to be paid, shall
be limited to tax on return on equity allowed, excluding incentives. (3)
The benefits of tax holiday and the credit for
carrying forward losses applicable as per the provisions of the Income Tax Act,
1961 shall be passed on to the customers. (4)
Any under-recoveries or over-recoveries of tax on
income shall be adjusted every year on the basis of return filed and income tax
assessment under the Income Tax Act, 1961 as certified by the statutory
Auditors. Income tax and foreign exchange rate variation
shall be provisionally estimated by the licensee for the purpose of determining
tariff and shall be subject to adjustment as per actuals as provided in clauses
26 and 27. (1)
The rate of return notified by Central Commission
for transmission may be adopted for distribution with appropriate modifications
taking into account the higher risks involved as decided by the Commission, on
the paid up equity capital determined in accordance with clause 12. (2)
The premium raised by the licensee while issuing
share capital and investment of internal resources created out of free reserve,
if any, for the funding the project, shall also be reckoned as paid up capital
for the purpose of computing return on equity, provided such premium amount and
internal resources are actually utilised for meeting capital expenditure of the
distribution system. (3)
Equity invested in foreign currency shall be
allowed a return up to the prescribed limit in the same currency and the
payment on this account shall be made in Indian Rupees based on the exchange
rate prevailing on the due date of billing. (1)
The total annual expenses and return on equity of
the licensee shall be worked out on the basis of expenses and return on equity
allowed in terms of clause 29. (2)
The annual revenue requirement of a distribution
licensee shall be worked out by deducting the following from its total expenses
and return worked out under the sub-clause (1) above: (a)
amount of other income as laid down in clause 32;
and (b)
any grant received from the State Government other
than the subsidy under section 65 of the Act meant for any consumer or class of
consumers. (3)
Necessary corrections on account of reasons beyond
the control of the licensee shall be incorporated in the annual revenue
requirement. In case the effect of such variation on ARR, caused by force
majeure conditions, is large, this may be recovered over a period of more than
one year, as may be decided by the Commission. Revenue Estimation Income from supply of electricity to consumers
shall be estimated based on the tariff applicable to different category of
consumers and the quantity of electricity estimated to be sold to them. The other income shall comprise of: (1)
Income from investments. (2)
Other non-tariff income from the levy of charges as
provided in the schedule for Miscellaneous Charges and general charges under
the CSERC (Details to be furnished by licensee or generating company for
determination of tariff and manner of making application) Regulations, 2004; (3)
Wheeling charges from open access customers; (4)
Income from surcharge, additional surcharge and
late payment surcharge from Open Access Customers under Sections 39, 40 and 42
of the Act; (5)
Revenue from other business shall be treated as
income to the extent authorized by the Commission under Sections 51 of the Act. (1)
In case the income of the licensee from tariff is
more than its annual revenue requirement in any year, the Commission may allow
the licensee to treat the additional income beyond the approved reasonable
return, in the following manner: (a)
One half of such amount may be retained by the
licensee to be treated as part of equity or may be paid as dividend to the
shareholders; (b)
The other half amount may be kept as tariff
balancing reserve to be used for reducing the ARR in future years as may be
directed by the Commission. A licensee shall recover the charges as per the
tariff determined by the Commission. If any licensee recovers charges exceeding
the tariff determined by the Commission, the excess amount shall be refunded to
the person who has paid such excess charges, along with interest equivalent to
the bank rate without prejudice to any other liability incurred by the
licensee. Tariff Principles (1)
The Commission may implement multi-year tariff for
distribution licensees for a control period of five years. However, the initial
control period may be of 3 years duration on account of data uncertainties and
other practical considerations. (2)
The Commission may determine tariff and revenue for
the base year, after proper evaluation and verification of the submissions made
by the licensee. (3)
The Commission may seek assistance of experts to
determine allowable costs of the licensees for each of the years of the control
period. (4)
All the uncontrollable costs shall be allowed as
pass through in tariff and these will include (but not limited to) the
following: (a)
Cost of fuel; (b)
Costs on account of inflation; (c)
Taxes and duties (d)
Variation in power purchase unit cost from base
line level including on account of change of hydro-thermal mix, in case of
force majeure and adverse natural events like drought. (5)
The Operation and Maintenance costs shall be
controllable cost and shall be based on escalation indices or other mode
determined during determination of tariff for the base year. (6)
The target for reduction of technical and
commercial losses during the control period shall be determined with reference
to the loss level determined for the base year and such level shall have the
flexibility to accommodate changes due to completion of metering arrangement
for accurate measurement of losses. The financial loss, if any, due to failure
to achieve the target shall be borne by the licensee and gain, if any, shall be
shared with the consumers as decided by the Commission. (7)
In addition to the annual review, a comprehensive
review of implementation of the MYT regime may be undertaken at the end of the
control period. The tariffs for various categories/voltages shall
progressively reflect the licensee's cost to serve a particular category at a
particular voltage. Allocation of all costs prudently incurred by the
distribution licensee to different category of consumers shall form the basis
of assessing cost to serve of a particular category. Every licensee shall
provide to the Commission an accurate cost to serve study for its area. The
category-wise/voltage-wise cost to serve should factor in such characteristics
as supply hours, load factor, voltage, extent of technical and commercial
losses etc. Pending availability of information that reasonably establishes the
category-wise/voltage-wise cost to serve, average cost of supply shall be used
for determining tariffs taking into account the fact that existing cross
subsidies will be reduced gradually. In determination of tariff the Commission may
resort to suitable mergers/demerger of categories and of sub-categories of
consumers to evolve a simple, comprehensive and logical tariff structure. (1)
To promote demand side management and various
energy conservation measures, two part tariffs featuring separate fixed and
variable charges and a differential tariff for peak and off-peak hours shall be
implemented. (2)
The Commission shall stipulate the broad
classification of consumers and timeframe for implementation of TOD tariff.
While stipulating differential tariffs, the Commission may also indicate the
peak, off-peak periods. (3)
The State Commission may provide incentives to
encourage metering and billing based on metered tariffs, particularly for
consumer categories that are presently unmetered to a large extent. The metered
tariffs and the incentives should be given wide publicity. The Commission may provide rebates to the consumers
for maintaining high power factor and load factor to promote efficiency of
operation and optimum capacity utilization. The Commission may switch over from
KWh tariff to KVAh tariff, which has the inbuilt benefit for a higher power
factor. Demand charges shall, however, continue to apply even after switching
over to KVAh billing. (1)
The cost of supply to a category of consumers and
realisation from that category of consumers shall form the basis for estimation
of cross subsidy. (2)
The Commission shall determine tariff in such a
manner it progressively reflects the cost of supply and the cross subsidy is
reduced and eliminated over a period of time as may be stipulated by the
Commission. However, till such time the tariff for any category of consumers
does not reflect the cost of supply to that category and cross subsidisation is
required, the tariff of the subsidised category shall be designed taking into
account the cross subsidy allocated to that category. (1)
The wheeling charges for a consumer category shall
be based on the costs of distribution licensee for its pure" wire
business". Thus all items of revenue requirement of the distribution
licensee excluding cost of power purchase and interest on security deposit from
consumers shall be the cost of distribution licensee for his wire business. (2)
The wheeling charges shall be computed taking into
account the input quantity of power for the projected units sold and wheeled
through the distribution licensee for the ensuing tariff period. For this
purpose the licensee has to specify the power to be wheeled in the ensuing
year. (3)
Wheeling charges so worked out shall be apportioned
supply voltage-wise. However, till adequate information is available, the
wheeling charges may have to be determined at a uniform rate irrespective of
voltage. (4)
Wheeling charges shall be single part chargeable in
Rs. per kWh or Rs. per MW per day. However, the Commission may adopt a two-part
tariff at a later stage. (5)
The normative distribution system loss at the
voltage at which the open access transaction is undertaken, shall be borne in
kind and debitable to energy account of open access customers. (1)
The Commission shall specify from time to time a
variable cost adjustment formula for calculation of additional charges for
adjustment of tariff on account of variation in fuel related costs of
electricity generation, purchase of electricity, levy of water charges, change
in tax structure, and any other unpredictable and unforeseen cost, not
envisaged at the time of tariff fixation. (2)
The licensee may calculate such charge in
accordance with the specified formula and recover the same from such categories
of consumers with due approval from the Commission. As per the provisions of the Act, the distribution
licensees may procure power from any generator of electricity and/or
electricity trader. The Commission may adopt a differential bulk supply tariff
mechanism to ensure uniformity in retail tariffs and different levels of
cross-subsidies that exit on account of the consumer mix. This position shall,
however, be reviewed by the Commission from time to time. (1)
If the State Government decides to subsidize any
consumer or class of consumers, as per the provisions of section 65, it shall
pay in advance the amount, to compensate the licensee affected by the grant of
such subsidy in the manner as specified by the Commission. Provided that no such direction of the State
Government to grant subsidy shall be operative if the payment is not made in
accordance with the provisions contained in the section 65 of the Act and the
tariff fixed by the State Commission shall be applicable from the date of issue
of orders by the Commission in this regard. (2)
To ensure implementation of the provision of the
Act, the Commission shall determine the tariff initially, without considering
the subsidy commitment by the State Government and subsidised tariff shall be
arrived at thereafter considering the subsidy by the State Government for the
respective categories of consumers. The quality of service provided by the distribution
licensee to its consumers shall be an important consideration and shall be
judged by the extent of adherence by the licensee to the standards of
performance as may be laid down by the Commission in Regulations. The
Commission may introduce a system of incentive and disincentive on the basis of
performance of the licensee. CHAPTER 4
Miscellaneous These Regulations shall apply mutatis mutandis to
the State Electricity Board functioning as a distribution licensee, under
section 172 of the Act. Till the Board continues to operate in terms of the
provisions of the said section 172, the retail tariff is to be determined
taking into account, the cost of generation, transmission and distribution
taken together. (1)
Nothing in these Regulations shall be deemed to
limit or otherwise impede the inherent power of the Commission to revise/review
and make such orders as may be necessary in the absence of sufficient data to
meet ends of justice or to prevent abuses of the process of the Commission. (2)
Nothing in these Regulations shall impede the
Commission from adopting, in conformity with the provisions of the Act, a
procedure, which is at variance with any of the provisions of these
Regulations, if the Commission, in view of the special circumstances of a
matter or class of matters and for reasons to be recorded in writing, deems it
necessary or expedient for dealing with such a matter or class of matters. (3)
Nothing in these Regulations shall, expressly or
impliedly, impede the Commission dealing with any matter or exercising any
power under the Act for which no Regulations have been framed, and the
Commission may deal with such matters, powers and functions in a manner it
thinks fit. If any difficulty arises in giving effect to any of
the provisions of these Regulations, the Commission may, by general or special
order, do or undertake or direct the licensees to do or undertake such
measures, which in the opinion of the Commission is necessary or expedient for
the purpose of removing the difficulties. The Commission may, at any time add, vary, alter,
modify or amend any of the provisions of these Regulations. The Regulations may
also be amended in view of National Electricity policy and National Tariff
Policy, if deemed necessary. Note: In case of any difference in the
interpretation or understanding of the provisions of the Hindi version of these
Regulations with that of the English version (the original version), the latter
will prevail and in case of any dispute in this regard, the decision of the
Commission shall be final and binding. APPENDIX [Refers to clause 16(3)] Depreciation Schedule Description of Assets Useful Life (yrs) Rate (Calculated w.r.t. 90%) 1 2 3=1*2 A. Land owned under full title Infinity - B. Land held under lease: (a) for investment in land. The period of lease or the period remaining
unexpired on the Assignment of the lease. - (b) for cost of clearing site The period of lease remaining unexpired at the
date of clearing the site. - C. Assets: Purchased new: (a) Plant and machinery in generating Stations
including plant foundations: - (i) Hydro-electric 35 2.57 90 (ii) Steam-electric NHRS & Waste Heat
Recovery Boilers/Plants 25 3.60 90 (iii) Diesel-electric & gas plant 15 6.00 90 (b) Cooling towers and circulating water systems (c) Hydraulic works forming Part of
hydro-electric system including: - 25 3.60 90 (i) Dams, Spilways weirs, canals reinforced
concrete Flumes & syphons 50 1.80 90 (ii) Reinforced concrete pipelines and surge
tanks, steel pipelines, sluice gates, steel surge (tanks) hydraulic control
valves and other hydraulic works. 35 2.57 90 (d) Building & civil engineering works of a
Permanent character, not mentioned above: - (i) Offices & showrooms 50 1.80 90 (ii) Containing thermo-electric generating plant 25 3.60 90 (iii) Containing hydro-electric generating plant 35 2.57 90 (iv) Temporary erection such as wooden structures 5 18.00 90 (v) Roads other than kutcha roads 50 1.80 90 (vi) Others 50 1.80 90 (e) Transformers, transformer (Kiosk) sub-station
equipment & other fixed apparatus (including plant foundations) (i) Transformers (including foundations) having a
rating of 100 kilo volt amperes and over 25 3.60 90 (ii) Others 25 3.60 90 (f) Switchgear, including cable connections 25 3.60 90 (g) Lightning arrestors: (i) Station type 25 3.60 90 (ii) Pole type 15 6.00 90 (iii) Sychronous condensor 35 2.57 90 (h) Batteries: 5 18.00 90 (i) Underground Cable Including joint boxes and
disconnected boxes 35 2.57 90 (ii) Cable duct system 50 1.80 90 (I) Overhead lines including supports: (i) Lines on fabricated steel operating at
nominal voltages higher than 66 KV 35 2.57 90 (ii) Lines on steel supports operating at nominal
voltages higher than 13.2 Kilo volts but not exceeding 66 Kilo vols 25 3.60 90 (iii) Lines on steel or reinforced concrete
supports 25 3.60 90 (iv) Lines on treated wood supports 25 3.60 90 (j) Meters 15 6.00 90 (k) Self propelled vehicles 5 18.00 90 (l) Air conditioning plants: (i) Static 15 6.00 90 (ii) Portable 5 18.00 90 (m) (i) Office furniture and fittings 15 6.00 90 (ii) Office equipments: 15 6.00 90 (iii) Internal wiring including fittings and
apparatus 15 6.00 90 (iv) Street light fittings 15 6.00 90 (o) Apparatus let on hire: (i) Other than motors 5 18.00 90 (ii) Motors 15 6.00 90 (p) Communication equipment: (i) Radio and higher frequency carrier system 15 6.00 90 (ii) Telephone lines and telephones 15 6.00 90 (q) Assets purchased second hand and assets not
otherwise provided for in the schedule Such reasonable period as the competent
Government determines in each case having regard to the nature, age and
condition of the assets at the time of its acquisition by the owner.THE CHHATTISGARH STATE ELECTRICITY
REGULATORY COMMISSION (TERMS AND CONDITIONS FOR DETERMINATION OF TARIFF)
REGULATIONS, 2006
PREAMBLE