16 ANNUAL REPORT. Gujarat Electricity Regulatory Commission. Financial Year

Transcription

1 Gujarat Electricity Regulatory Commission 16 ANNUAL REPORT Financial Year Floor, GIFT ONE, Road 5-C, GIFT CITY, Gandhinagar , GUJARAT

2 GUJARAT ELECTRICITY REGULATORY COMMISSION Sixteen 6 Floor, GIFT ONE, Road 5C, Zone 5, GIFT CITY, Gandhinagar Website : gerc@gercin.org

3 GUJARAT ELECTRICITY REGULATORY COMMISSION The Commission presents e 16 Annual Report for FY , as required under Section 105 of e Electricity Act, Roopwant Singh, IAS Secretary Gujarat Electricity Regulatory Commission

4 CONTENTS Annexure Abbreviations From e Desk of e Chairman Activity Highlights of ii...iii...iv...vi 1. Organizational Setup of e Commission 1.1 The Commission Infrastructure Staff 2 2. Role of e Commission 2.1 The Mandate The Functions Regulations 4 3. Activities during e Year 3.1 Determination of Tariff Status in e Context of The National Electricity Policy Status in e Context of Tariff Policy Disposal of Petition and Appeals Adjudication of Disputes and Differences State Advisory Committee 55 ` 3.7 Training Programmes FOR Meetings FOIR Meetings Annual Accounts The Power Sector Scenario in Gujarat An overview 60 Page i

5 ANNEXURES 1. Positions wiin e Commission Organization Structure of e Commission Details of e Petitions Applications Disposed of during e Year Details of Regulations/Orders notified by e Commission Details of e Locations of Consumer Grievance Redressal Forum Details of Appeals redressed by Forums during e Year Details of Appeals disposed of by e Electricity Ombudsman during e Year Types of Complaints received at Ombudsman s office during Constitution of e State Advisory Committee...85 Page ii

6 ABBREVIATIONS ABT Availability Based Tariff ARR Annual Revenue Requirement BPL Below Poverty Line CEI Chief Electrical Inspector CERC Central Electricity Regulatory Commission CERS Consumer Education and Research Society CIRE Central Institute of Rural Electrification CPP Captive Power Plant DGVCL Dakshin Gujarat Vij Company Ltd DSM Demand Side Management EI Electrical Inspector ESCI Engineering Staff College of India FOIR Forum of Indian Regulators FOR Forum of Regulators FPPPA Fuel and Power Purchase Price Adjustment GEB Gujarat Electricity Board GERC Gujarat Electricity Regulatory Commission GETCO Gujarat Energy Transmission Corporation Ltd. GSECL Gujarat State Electricity Corporation Ltd. GUVNL Gujarat Urja Vikas Nigam Ltd. IIT Indian Institute of Technology IOC Indian Oil Corporation Ltd MGVCL Madhya Gujarat Vij Company Ltd PDCRC Permanent Disconnection Consumer Reconnection Charge PGVCL Pashchim Gujarat Vij Company Ltd. POC Parallel Operation Charges PPA Power Purchase Agreement SSNNL Sardar Sarovar Narmada Nigam Limited SAFIR Sou Asia Forum for Infrastructure Regulation TPL Torrent Power Limited NTCT Night Time Concessional Tariff UGVCL Uttar Gujarat Vij Company Ltd TOU Time of Use TOD Time of Day KPT Kandla Port Trust MUPL MPSEZ Utilities Pvt. Ltd. MTR Mid-Term Review SLDC State Load Dispatch Centre TEL Torrent Energy Limited Page iii

7 FROM THE DESK OF THE CHAIRMAN Gujarat Electricity Regulatory Commission ever since it came into existence in November, 1998 has been striving to fulfill e duties and responsibilities assigned to it under e Electricity Act. In is journey of more an a decade it has framed a number of regulations, performance standards, supply codes, grid codes, etc. and has effectively performed its role of monitoring e performance of e utilities, bo in State sector and Private sector, while balancing e interest of all e stakeholders, be it retail or bulk consumers. The Commission has given some landmark judgments which are often being cited by upper forums like APTEL. Wi e enabling regulations e Commission has been able to create conducive atmosphere to attract investment in e State as e Utilities in e State have been providing 24x7 quality power to all categories of consumers except Agriculture, while 3-Phase power for 8 hours and 1-Phase power is supplied to Ag Consumers. In fact, Gujarat model of feeder bifurcation under Jyoti Gram Yojana is being replicated roughout e country under e Central Govt Scheme of DDUJGY. The Commission prides itself as one of e few Commissions who has issued regular and timely tariff orders enabling e Utilities in State to have sound financial position. On eir part, e Utilities wi eir sound financial heal have also been making huge investment in creating new and strengening existing infrastructure to provide quality power to categories of consumers wiout differentiating eir paying capacity. The Commission monitors eir performance against e targets set in e Standard of Performance Regulations regularly. This keeps e Utilities on eir toes and ensures timely actions to overcome any shortcomings. It is a matter of great pride at e four (4) State owned DISCOMs have been consistently rated as A+ since last ree years by e Ministry of Power. The Commission is also conscious of its duty towards e electricity consumers of e State, and as such tries to minimize e impact of tariff hikes on common citizen. Power purchase being e major cost element in e Aggregate Revenue Requirement of e Electricity Distribution Licensees and recognizing e need to regulate e electricity procurement process of e licensees, e Commission issued e Guidelines for procurement of power by e Distribution Licensees. These guidelines provide for e licensees to make realistic assessment of e demand in eir license areas every year and plan e procurement process optimally. In order to avoid burden of unrealistic and volatility in short term electricity market, e licensees have been mandated to tie up at least 75% of eir requirement from long term sources. Volatility in e fuel price has been one of e issues affecting e cash flows of e utilities and e Commission addressed is issue by specifying Fuel Price and Power Purchase Adjustment (FPPPA) formula which enables e Utilities to recover e incremental cost of Fuel & Power Page iv

8 Purchase at quarterly intervals and ereby achieving e objective of not burdening e future consumers wi past costs as specified in e National Tariff Policy. The Commission is also alive to e woes of common electricity consumers and eir grievances against e licensees. To mitigate eir hardship, Consumer Grievance Redressal Forums have been established in different parts of e State. The Commission has also appointed an independent Electricity Ombudsman to enable e consumers to approach him if ey are not satisfied wi e decision of e Forum. The Commission regularly monitors e performance of e Forums as well as e Electricity Ombudsman, rough quarterly meetings, and gives necessary directions. The Commission interacts wi e representatives of consumer organizations, industry associations, individuals representing prominent citizens and oer institutions rough e State Advisory Committee. Committee meetings are held regularly to understand views of e members who representing cross sections of e consumers and frame e policies accordingly. The Commission also interacts wi various organizations connected wi e electricity sector of e State rough e Co-ordination Forum meetings. The Commission firmly believes in e benefits of e modern technologies and encourages e utilities to undertake activities in e fields of Smart Grid and Demand Side Management. The Commission also regularly monitors e AT&C losses and actions taken by e distribution companies to reduce e losses and as a result, e AT&C losses of e distribution companies in e State have been amongst e lowest in e country. The Commission is also alive to its duties towards e rising concerns regarding environmental issues and e role e Renewable Sources of Energy can play in sustainable grow. The Commission is duty bound to promote e generation from renewable sources and accordingly has specified e Renewable Power Purchase Obligation (RPPO) targets for e distribution licensees. The Commission decides e tariff for electricity generated from different forms of renewable sources and periodically reviews e same. In order to promote solar initiative, e Commission has issued draft Net Metering Regulations for Grid Connected Rooftop Solar Plants. The Commission is also in process of issuing tariff orders for Wind Power, Small and Mini Hydro and Biomass based power projects and Bagasse based co-generation projects for e next control period. Wi ese words, I present e 16 Annual Report of e Commission wi e confidence at e Electricity Sector in e State of Gujarat will continue to grow and perform well. Sd/- K. M. Shringarpure Chairman Page v

9 ACTIVITY HIGHLIGHTS OF Determination of Tariff : True up for FY and determination of tariff for FY During e year, e Commission issued Tariff Orders comprising of truing up for FY and determination of tariff for FY for below listed utilities operating in e State; 1. Gujarat Energy Transmission Corporation Ltd (GETCO)- The State Transmission Company, 2. State Load Dispatch Centre (SLDC) 3. Gujarat State Electricity Corporation Ltd (GSECL) - The State Generation Company, 4. Uttar Gujarat Vij Company Ltd (UGVCL) The Distribution Company for Nor Gujarat, 5. Dakshin Gujarat Vij Company Ltd (DGVCL) The Distribution Company for Sou Gujarat, 6. Madhya Gujarat Vij Company Ltd (MGVCL) The Distribution Company for Central Gujarat, 7. Pashchim Gujarat Vij Company Ltd (PGVCL) The Distribution Company for Western Gujarat, 8. Torrent Power Ltd (TPL-G) - The Private owned Generation entity 9. Torrent Power Ltd (TPL-A)- The Private owned distribution entity for Ahmedabad and Gandhinagar, 10. Torrent Power Ltd (TPL-S) - The Private owned distribution entity for Surat, 11. MPSEZ Utilities Private Limited (MUPL) - The Private owned distribution entity for Mundra SEZ area, 12. Kandla Port Trust (KPT) - The distribution licensee owned by Kandla Port Trust for its area of operation at Kandla, 13. Torrent Energy Ltd (TEL) - The Private owned distribution entity for Dahej SEZ area, 14. Jubilant Infrastructure Ltd.(JIL) - The Private owned distribution entity for Ishwaria SEZ area Near Bharuch, 15. ASPEN Infra. Ltd. [AIL]( erstwhile Synfra Engineering and Construction Ltd.) - The Private owned distribution entity for Vaghodia SEZ area near Vadodara, Disposal of Petitions & Misc. Applications :- The Commission has disposed of 85 petitions & 1 Appeal during e financial year and No license application was received during Financial Year Meetings :- State Advisory Committee : 20 Meeting on 6 August, 2014 at GIFT City, Gandhinagar. State Co-Ordination Form : 15 Meeting on 6 August, 2014 at GIFT City, Gandhinagar. Meeting on CGRFs : 17 Meeting on 15 May, 2014 at GIFT City, Gandhinagar. 18 Meeting on 14 Nov, 2014 at GIFT City, Gandhinagar. Page vi Page iii

10 Shri Pravinbhai Patel, Chairman, attended following Conference/Meetings during e period to Sl No. Period Details MNRE Meeting on Grid Connected Roof Top issues & Challenges at Delhi Customer Relationship in Management on Electricity in India, Sri Lanka & Bangladesh at Delhi Organized by CUTs International edition of Green Power Conference and Exposition on Renewable Energy Technologies at ITC Grand Chola, Chennai organized by CII, Hyderabad FOR working Group Meeting in Renewable Energy at Delhi to 15 Regulators & policymakers retreat 2014 (RPR) at Goa Marriott Resort & Spa, Goa Organized by IPPAI FOR working Group on Renewable Energy at CERC, Delhi Organized by FOR Special working Group Meeting on Renewable Energy & FOR working group on Power Supply Challenges and Way Forward Organized by FOR FOR Subgroup meeting on Power Supply Challenges and Way forward Organized by GERC Ahmedabad Engineer s day celebration at NTPC Jhanor, Bharuch, Ahmedabad FOR SubGroup Meeting on Power Supply Challenges and Way Forward Govt. of Gujarat organized EnerAsia 2014 A Global Energy Conference and Exhibition at PDPU Gandhinagar a part of e pre-vibrant Gujarat 2015 programme FOR SubGroup Meeting on Power Supply Challenges and Way Forward FOR Meeting at Masoori Future of Grid Workshop FOR Working Group Meeting on Power Supply Challenges and Way Forward at New Delhi Asia Regional Workshop on Strengening Public Private Partnerships for Sustainable Electricity Efficiency at New Delhi - TERI FOIR Research workshop and Conference at Kochi to FOR Meeting at Bangalore to FOR Working Group on amendment to Electricity Act at Jaipur FOR Meeting on proposed Amendment on Electricity Act 2015 at Delhi Meeting wi Parliamentary Committee on Energy at Delhi. Page vii

11 Sl No. Period Details FOR Subgroup Meeting on Quality of Power at Bhuj US-India Smart Grid at Bangalore workshop at Bangalore to SAFIR Meeting at Bhutan Dr. M. K. Iyer, Member (F) Partcipated in e following Meetings:- Sl No. Period Details 1 26 June 2014 Workshop/Research Conference for e Chairpersons and Members of e Regulatory Commission/Auorities at New Delhi Nov 2014 Interactive session of appellate tribunal for Electricity and Regulatory Commissions at New Delhi to 12 FOIR Meeting/Workshop/Research Conference for e Chairpersons and December 2014 Members of Regulatory Commission/Auorities at Kochi. Page viii

12 1. ORGANIZATIONAL SET-UP OF THE COMMISSION 1.1 THE COMMISSION During e year, Shri Pravinbhai Patel rendered his service as Chairman, and Shri K. M. Shringarpure appointed by e Government of Gujarat as a Member and took oa as Member, GERC on 29 December Dr. M. K. Iyer rendered his services as Member (Finance) respectively. Shri Dilip Raval, (IAS) took over as Secretary of e Commission. OFFICE OF THE COMMISSION 1.2 INFRASTRUCTURE Office Building: The Commission has its own office at premises in GIFT City at 6 Floor, GIFT One, Road 5C, Zone 5, GIFT City, Gandhinagar wi appropriate Conference Room, Court Room for conducting hearing facilities to conduct its business. To facilitate better working conditions and larger court room facilities. Local Area Network (LAN) and Website Hosting: The computer systems in e Commission s office are connected rough Local Area Network (LAN). The system is useful for access to any reference information. The Commission has its own redesigned website which is regularly maintained and updated by its Secretariat. The website is used for announcing hearing schedules, news, Agenda, Meeting and its Minutes updates, issuing orders and inviting comments on concept papers, regulations and petitions. It also provides information on Consumer Grievances Redressal Forums and Ombudsman and guides consumers for Redressal of eir grievances. Furer, documents such as notified regulations, orders, reports and details regarding Right to Information Act 2005 are also available in downloadable formats on e website. Page 1

13 1.3 COMMISSION STAFF The staff of e Commission is appointed rough direct recruitment, contract or on deputation basis. Annexure 1 shows e staff position in e Commission while Annexure 2 shows e organizational chart. st The details of officers and staff of e Commission (as on 31 March, 2015) are given below:- Sr.No. Name of e Employee Designation 1 Shri Dilip Raval, I.A.S Secretary 2 Mr. M. N. Khalyani, G.A.S Dy. Director (Admin & Accounts) 3 Mr. D. R. Parmar (Up to Deputation at JERC) Joint Director (Technical) 4 Mr. S. R. Pandey Legal Advisor 5 Miss. C. N. Bhatt Chief Accounts Officer 6 Mr. S. T. Anada Deputy Director 7 Mr. G. O. Dayalani Deputy Director 8 Mr. A. U. Adhvaryu Deputy Director 9 Mr. P. J. Jani Deputy Director 10 Mr. Jignesh Makwana Executive 11 Mrs. Kajal B. Chaudhari Executive 12 Mr. Umesh A. Gor Executive 13 Mr. Abhishek Makwana Executive 14 Mr. Santoshkumar Asipu Executive 15 Mr. Wasim Akhtar Ansari Executive 16 Mr. Rupesh G. Jadav Executive 17 Mr. Ruchik Sola Executive 18 Mr. Ketan Thanki Executive 19 Shabana Basirbhai Dal Executive 20 Mr. P. R. Sasi Personal Assistant 21 Mr. R. G. Pillai Personal Assistant 22 Mrs. P. A. Christian Personal Assistant 23 Mr. T. M. Raval Personal Assistant 24 Mr. K. I. Desai Junior Assistant 25 Mrs. Hetal Ketan Thanki Receptionist-Cum-Clerk In addition, ere are five driver-cum-attendants and four peons in e Commission. Page 2

14 2. ROLE OF THE COMMISSION 2.1 THE MANDATE The Electricity Act, 2003, aims at consolidating e laws related to generation, transmission, distribution, trading and use of electricity; generally taking measures conducive to development of e electricity industry, promoting competition erein, protecting interest of consumers, ensuring supply of electricity to all areas, rationalisation of electricity tariff, ensuring transparent policies regarding subsidies, promotion of efficient and environmentally benign policies, constitution of e Central Electricity Auority, Regulatory Commissions and establishment of Appellate Tribunal for electricity. It also aims to create an enabling framework conducive to development of e power sector in an open, non-discriminatory, competitive, market driven environment; keeping in view e interest of consumers, as well as power suppliers. In is context, e role of e Commission is pivotal in order to realise e objectives envisaged in e Electricity Act. 2.2 THE FUNCTIONS According to section 86 of e Electricity Act, 2003 e Commission is mandated to carry out e following functions: a) Determining e tariff for generation, supply, transmission, distribution and wheeling of electricity, wholesale, bulk or retail, as e case may be, wiin e state; provided at Where open access has been permitted to a category of consumers under section 42, e State Commission determines only e wheeling charge and surcharge ereon, if any, for e said category of consumers; b) Regulating e electricity purchase and procurement process of distribution licensees, including e price at which electricity is to be procured from e generating companies or licensees or oer sources, rough agreements for purchase of power for distribution and supply wiin e state; c) Facilitating intra-state transmission and wheeling of electricity; d) Issuing licenses to persons seeking to act as transmission licensees, distribution licensees and electricity traders; wi respect to eir operations wiin e state; e) Promoting cogeneration and generation of electricity from renewable sources of energy by providing suitable measures for connectivity wi e grid and sale of electricity to any person, and also specifying, for purchase of electricity from such sources, a percentage of e total consumption of electricity in e area of a distribution licence; f) Adjudicating upon disputes between licensees and generating companies and to refer any dispute for arbitration; g) Levying fee for e purposes of e Act; Page 3

15 h) Specifying state grid code, consistent wi e grid code specified by e Central Electricity Regulatory Commission under clause (h), sub-section (1) of section 79 of e Act; i) Specifying or enforcing standards wi respect to quality, continuity and reliability of service by licensees; j) Fixing e trading margin in e intra-state trading of electricity, if considered, necessary; k) Discharging oer such functions as may be assigned to it under e Act; 2.3 Regulations The Commission has so far issued 40 regulations /notifications/orders by publishing new ones or superseding old ones or making amendments as detailed in Annexure 5. Page 4

16 3. ACTIVITIES DURING THE FINANCIAL YEAR Mid-term Review of Business Plan, True up for FY and determination of tariff for FY and True up for FY and determination of tariff for FY GETCO, SLDC, all e four State Owned DISCOMs, TPL (Generation), TPL - D (bo Ahmedabad & Surat), MUPL and TEL had filed eir petitions for Mid-term Review of Business Plan and Revision of ARR for e remaining years of control period i.e. FY and FY All e utilities had filed eir petition for Truing Up of FY and Determination of tariff for FY All e utilities had also filed eir petition for Truing Up of FY and Determination of tariff for FY Mid-term Review (MTR) of Business plan In accordance wi Section 16.2 along wi e Section 17.2 GERC (MYT) Regulations, 2011, GETCO, SLDC, all e four State Owned DISCOMs, TPL (Generation), TPL - D (bo Ahmedabad & Surat), MUPL and TEL had filed eir petitions for Mid-term Review of Business Plan and Revision of ARR for e remaining control period for FY and FY The Commission admitted e above petitions and directed e petitioners to publish e petitions in newspapers as well as on e website of e utilities for inviting objections and suggestions on e petitions. Accordingly, e Commission received e objections / suggestions from various stakeholders and conducted public hearing at e Commission s Office, Gandhinagar on dated 11, st 13 and 21 of February, The Commission issued e tariff orders on 29 April, The Commission issued Tariff Orders for Mid-term review business plan for below listed utilities operating in e State; a) Gujarat Energy Transmission Corporation Ltd. (GETCO) - The State Transmission Company b) State Load Dispatch Centre (SLDC) c) Dakshin Gujarat Vij Company Ltd (DGVCL) The Distribution Company for Sou Gujarat, d) Madhya Gujarat Vij Company Ltd (MGVCL) The Distribution Company for Central Gujarat, e) Paschim Gujarat Vij Company Ltd (PGVCL) The Distribution Company for Western Gujarat, f) Uttar Gujarat Vij Company Ltd (UGVCL) The Distribution Company for Nor Gujarat, g) Torrent Power Ltd (TPL-G) - The Private owned Generation entity, h) Torrent Power Ltd (TPL-A) - The Private owned distribution entity for Ahmedabad and Gandhinagar. I) Torrent Power Ltd (TPL-S) - The Private owned distribution entity for Surat, j) MPSEZ Utilities Private Limited (MUPL) - The Private owned distribution entity for Mundra SEZ area, k) Torrent Energy Ltd (TEL) - The Private owned distribution entity for Dahej SEZ area Page 5

17 Highlights of e orders are detailed below; a) Gujarat Energy Transmission Corporation Ltd. (GETCO)- The State Transmission Company In accordance wi Regulation 16.2 of GERC (MYT) Regulation, 2011, GETCO filed e Petition for Midterm Review of e Business Plan and Revision of ARR for e remaining years of e control period, i.e. FY and FY on 30 August, The Commission admitted e Petition vide Case No. 1341/2013 dated 6 September, The Commission received objections/suggestions from four stakeholders. The Commission examined e received objections/suggestions and fixed e date for public hearing for e petition on 11 February, 2014 at e Commission s Office, Gandhinagar, and subsequently, a communication was sent to e objectors to take part in e public hearing process for presenting eir views in person before e Commission. The public hearing was conducted in Commission s Office in Gandhinagar as scheduled on e above date. The Commission issued its orders on e above petitions on 29 April, The Commission approved ARR for GETCO for e periods FY and FY in e MTR against projected by GETCO in its petition as under: Particulars FY FY Annual Transmission b) State Load Dispatch Centre (SLDC) Projected by Approved by Projected by Approved by GETCO e Commission GETCO e Commission Charges(in `. Crore) In accordance wi Regulation 16.2 of GERC (MYT) Regulation, 2011, SLDC filed e Petition for Midterm Review of e Business Plan and Revision of ARR for e remaining years of e control period, i.e. FY t h and FY on 11 December, Furer, SLDC filed an addendum petition on 30 December, 2013 for True-up for FY , Mid-term Review for FYs and and tariff f o r FY under GERC (MYT) Regulations, 2011, and section 62 of e Electricity Act, The Commission admitted e Petition vide Case No. 1386/2013 dated on 05 December, The Commission did not receive objections / suggestions on e Mid-term Review petition filed by SLDC. The public hearing was conducted in Commission s Office in Gandhinagar as scheduled on 11 February, During e hearing nobody submitted eir views on e Mid-term Review petition filed by SLDC. The Commission issued its orders on e above petitions on 29 April, The Commission approved ARR for SLDC for e periods FY and FY in e MTR against projected by SLDC in its petition 1386/2013 as under: Page 6

18 Particulars FY FY Projected by Approved by Projected by Approved by SLDC e Commission SLDC e Commission ARR For SLDC Charges(in `. Lakh) c,d,e,f) State Owned Distribution Companies - DISCOMs (DGVCL, MGVCL, PGVCL and UGVCL) In accordance wi Regulation 16.2 of GERC (MYT) Regulation, 2011, e state owned DISCOMs filed e Petition for Midterm Review of e Business Plan and Revision of ARR for e remaining years of e control period, i.e. FY and FY on 30 September, The Commission dmitted e Petitions of DGVCL, MGVCL, PGVCL and UGVCL vide Case Nos. 1353/2013, 1354/2013, 1355/2013 and 1352/2013 dated on 11 October, The Commission received objections / suggestions from 3 consumers / consumer organizations. The Commission examined e received objections / suggestions and fixed e date for public hearing for e petition on 13 February, 2014 at e Commission s Office, Gandhinagar, and subsequently, a communication was sent to e objectors to take part in e public hearing process for presenting eir views in person before e Commission. The Commission issued its orders on e above petitions on 29 April, Performance parameters for DISCOMs approved in e MTR The commission approved e distribution losses for state owned DISCOMs for FY and FY , which is shown as below; Name of Discoms Approved Distribution Loss in % FY FY DGVCL MGVCL PGVCL UGVCL While approving ARR, e Commission made realistic projections of capitalization while approving various components of ARR like Depreciation, Interest and Finance charges, Return on Equity and Interest on Working capital to avoid front loading of ese elements on e retail Tariff. However, actual capitalization at e time of Truing up of respective year should be taken in to consideration by e Commission after prudence check. The Annual Revenue Requirement (ARR) projected by DISCOMs for FY and FY in its business plan review petitions and e ARR approved by e Commission for eses years after prudence check is shown in e Table below; Page 7

19 YEARS FY FY Projected by Approved by Projected by Approved by DISCOM e Commission DISCOM e Commission DGVCL MGVCL PGVCL UGVCL g,h,i) Torrent Power Ltd. (TPL) Torrent Power Limited (TPL), a private electricity company having Distribution licence for Distribution of electricity in Ahmedabad, Gandhinagar and Surat and generation facility in Ahmedabad, in accordance wi Regulation 16.2 of GERC (MYT) Regulation, 2011, filed e Petition for Midterm Review of e Business Plan and Revision of ARR for e remaining years of e control period, i.e. FY and FY on 30 November, 2013 after e Commission had granted extension. The Commission admitted e Petitions of TPL-G, TPL-Ahd. and TPL-Surat vide Case Nos. 1368/2013, 1366/2013 and 1367/2013 dated on 04 December,2013. The Commission received objections / suggestions from 6 consumers / consumer organizations. The Commission examined e objections / suggestions received and fixed e date for public hearing for st e petition on 21 February, 2014 at e Commission s Office, Gandhinagar, and subsequently, a communication was sent to e objectors to take part in e public hearing process for presenting eir views in person before e Commission. The Commission issued its orders on e above petitions on 29 April, Performance parameter for TPL-D approved in e MTR The Commission approved distribution losses for TPL-Ahd. as 7.65%, whereas for TPL-Surat, it was 4.50%, for bo e FYs i.e. FY and FY While approving ARR, e Commission made realistic projections of capitalization while approving various components of ARR like Depreciation, Interest and Finance charges, Return on Equity and Interest on Working capital to avoid front loading of ese elements on e retail Tariff. However, actual capitalization at e time of Truing up of respective year should be taken in to consideration by e Commission after prudence check. The Annual Revenue Requirement (ARR) projected by TPL for FY and FY in its business plan review petitions for its Generation and Distribution businesses and e ARR approved by e Commission for eses years after prudence check is shown in e Table below; Page 8

20 Annual Revenue Requirements in `. Crore YEARS FY FY Business Area Projected Approved by Projected Approved by by TPL e Commission by TPL e Commission Ahmedabad Generation Ahmedabad-Gandhinagar Distribution Surat Distribution (j) MPSEZ Utilities Private Limited (MUPL) - The Private owned distribution entity for Mundra SEZ area In accordance wi Regulation 16.2 of GERC (MYT) Regulation, 2011, e MUPL filed e Petition for Midterm Review of e Business Plan and Revision of ARR for e remaining years of e control period, i.e. FY and FY on 30 August, The Commission admitted e Petition of MUPL vide Case Nos. 1342/2013 dated on 13 September, The Commission received objections / suggestions from 1 consumer / consumer organization. The Commission examined e received objections / suggestions and fixed e date for public hearing for e petition on 11 February, 2014 at e Commission s Office, Gandhinagar, and subsequently, a communication was sent to e objectors to take part in e public hearing process for presenting eir views in person before e Commission. The Commission issued its orders on e above petitions on 29 May, Performance parameter for MUPL approved in e MTR The commission approved e distribution losses for MUPL as 4.50% for bo e FYs i.e. FY and FY The Commission approved ARR for MUPL for e periods FY and FY in e MTR against projected by MUPL in its petition 1342/2013 as under: Particulars FY FY ARR for MUPL Projected by Approved by Projected by Approved by MUPL e Commission MUPL e Commission (in `. Crore) Page 9

21 (K) Torrent Energy Ltd (TEL) - The Private owned distribution entity for Dahej SEZ area In accordance wi Regulation 16.2 of GERC (MYT) Regulation, 2011, e TEL-D filed e Petition for Midterm Review of e Business Plan and Revision of ARR for e remaining years of e control period, i.e. FY and FY on 30 November, The Commission admitted e Petition of TEL-D vide Case Nos. 1369/2013 dated on 4 December, The Commission has not received objections / suggestions on e Mid-term Review petition filed by st TEL-D. The public hearing was conducted in Commission s Office in Gandhinagar as scheduled on 21 February During e hearing nobody submitted eir views on e Mid-term Review petition filed by TEL-D. The Commission issued its orders on e above petitions on 29 April, Performance parameter for TEL-D approved in e MTR The commission approved e distribution losses for TEL-D as 2.00% for bo e FYs i.e. FY and FY The Commission approved ARR for TEL-D for e periods FY and FY in e MTR against projected by TEL-D in its petition 1369/2013 as under; Particulars FY FY ARR for TEL-D Projected by Approved by Projected by Approved by TPL-D e Commission TPL-D e Commission (in `. Crore) DETERMINATION OF TARIFF FOR THE FY True up for FY and determination of tariff for FY During e year, e Commission issued Tariff Orders comprising of truing up for FY and determination of tariff for FY for e below listed utilities operating in e State; a) Gujarat State Electricity Corporation Ltd. (GSECL)- The State Generating Company b) Gujarat Energy Transmission Corporation Ltd. (GETCO)- The State Transmission Company c) State Load Dispatch Centre (SLDC) d) Dakshin Gujarat Vij Company Ltd (DGVCL) The Distribution Company for Sou Gujarat, e) Madhya Gujarat Vij Company Ltd (MGVCL) The Distribution Company for Central Gujarat, f) Paschim Gujarat Vij Company Ltd (PGVCL) The Distribution Company for Western Gujarat, g) Uttar Gujarat Vij Company Ltd (UGVCL) The Distribution Company for Nor Gujarat, h) Torrent Power Ltd (TPL-G) - The Private owned Generation entity, i) Torrent Power Ltd (TPL-A)- The Private owned distribution entity for Ahmedabad and Gandhinagar, j) Torrent Power Ltd (TPL-S) - The Private owned distribution entity for Surat, Page 10

22 k) MPSEZ Utilities Private Limited (MUPL) - The Private owned distribution entity for Mundra SEZ area, l) Torrent Energy Ltd (TEL) - The Private owned distribution entity for Dahej SEZ area, m) Kandla Port Trust (KPT) e distribution licensee owned by Kandla Port Trust for its area of operation at Kandla n) ASPEN infra Ltd. [AIL] (erstwhile Synfra Engineering and Construction Ltd.) The Private owned distribution entity for Vaghodia SEZ area near Vadodara. (a) Gujarat State Electricity Corporation Ltd. (GSECL) GSECL is e state owned generation company of e Gujarat and one of e main sources of electricity for e Distribution licensees in e state. GSECL filed its petition for Truing up for FY and Determination of Tariff for FY on dated 30 November, The Commission examined e petitions keeping in view e procedures laid down under e Electricity Act, 2003 and e relevant Rules and Regulations and admitted e petition vide Case Nos. 1374/2013 on 4 December, The Commission invited comments from public and stakeholders on e petitions of e utilities. The public hearing was conducted in Commission s Office in Gandhinagar as scheduled on 11 February, There were four stakeholders submitted eir suggestions and objections. Consumer Education and Research Society (CERS), Shri Amarsinh Chavada, Utility User Welfare Association and Gujarat Vij Company Ltd. (GUVNL) put forward eir views and participated in e hearing. The Commission issued its order on is petition on 29 April, Performance of GSECL during FY Electricity generation from e power plants of GSECL was MUs against e approved generation of MUs in e MYT order. The Plant Availability Factor of GSECL stations was less an e approved plant availability factor of Wanakbori 1-6, KLTPS 1-3, KLTPS 4 and Kadana Hydro by e Commission in Tariff order dated 11 April, The plant Load Factor of e stations such as Ukai 1-5, Gandhinagar (1-4), Wanakbori 1-6, Sikka TPS, KLTPS 1-3, KLTPS 4, Dhuvaran gas 1, Dhuvaran gas 2, Utran (Gas) and Utran Extension stations were lower for e FY an approved in e Tariff order dated 11 April, The actual Auxiliary Consumption of all e stations was more an e approved except Ukai hydro and Kadana hydro stations. The actual Station Heat Rate was more an at approved station heat rate in e case of G nagar (5), Wanakbori 1-6, KLTPS 1-3, KLTPS 4, Dhruvaran Gas 1&2 and Utran Gas stations. The Secondary Fuel Oil Consumption was more an at approved in e case of G nagar (1-4), KLTPS 1-3 and KLTPS 4 stations. The coal transit loss for GSECL stations was e same as at approved. True up of FY While truing up for e year FY , e various components of ARR were compared wi e approved figures as per e MYT order vide case no. 1061/2011 dated 11 April, The Commission computed e gains and losses for FY based on Truing up for each of e components. Excluding Page 11

23 e PPA based stations, e Commission approved e revised ARR of ` Cr. for FY compared to ARR ` Cr approved in e MYT order dated 11 April, The Commission approved e net gain of ` Crore in e Truing up for FY Furer, is net gain of ` Crore approved was to be passed on to e DISCOMs in 12 equal monly installments rough GUVNL. Determination of tariff for : The Commission approved annual fixed charges for FY as ` Crore in e MYT order dated 11 April, st The Ukai-6, Dhruvaran CCPP-3 and Sikka 3 & 4 plant was likely to be commissioned on 8 June, 2013, 31 st March, 2014 and 31 March, 2014 respectively. The Commission provisionally approved e fixed charge of e above plants as ` Cr., ` Cr. and ` Cr. respectively. The Commission directed GSECL to recover e fixed charges on pro-rata basis in accordance to date of commissioning of ese stations. The Commission provisionally approved e variable charges for Ukai-6, Dhruvaran CCPP-3 and Sikka 3 & 4 as ` /kwh, ` /kwh and ` /kwh respectively. GSECL was directed to provide its comments on discontinuation of work by JCOAL. GSECL was directed to report e latest position in replacing e main-line coal wi e washed coal. GSECL was directed to develop competency in all fields of planning and operations, and should come up as an efficient state owned generating company at is ready to compete wi private generating companies. GSECL was directed to design a roadmap for e same and apprise e Commission of e action taken. GSECL was directed to submit P.G. test results in respect of KLTPS-4. GSECL was directed to submit to e Commission a progress report on e implementation of e recommendations made in fuel audit report for FY of Power Stations of GSECL. (b) Gujarat Energy Transmission Corporation Ltd. (GETCO) GETCO filed its petition for Truing up for FY and Determination of Tariff for FY on dated 27 November, The Commission examined e petitions keeping in view e procedures laid down under e Electricity Act, 2003 and e relevant Rules and Regulations and admitted e petition vide Case Nos. 1375/2013 on 4 December, The Commission received objections / suggestions from seven stakeholders. The Commission examined e received objections / suggestions and fixed e date for public hearing for e petition on 11 February, 2014 at e Commission s Office, Gandhinagar, and subsequently, a communication was sent to e objectors to take part in e public hearing process for presenting eir views in person before e Commission. The Commission issued its orders on e above petitions on 29 April, Truing up of : While truing up for e year FY , e various components of ARR and e actual revenue were st compared wi e approved figures as per e MYT order vide case no. 1062/2011 dated 31 March, The Commission computed e gains and losses for FY based on Truing up for each of e Page 12

24 components. The Commission approved e revised ARR of ` Crore for compared to st ARR of ` Crore approved in e MYT order dated 31 March, Thus, ere was a surplus of ` Crore in Performance of GETCO during FY In FY , GETCO performed well by keeping its system availability higher and system losses at lower level an ose approved by e Commission. Availability of GETCO system remained at 99.46% against 98.00% approved in e MYT Order dated for FY GETCO controlled e system losses at 3.89% against e loss level of 4.15 % approved by e Commission in e MYT order. Determination of Transmission tariff for : The Commission approved ARR of Rs Crore for GETCO in e MTR order dated 29 April, 2014 for FY Based on is approved ARR and truing up of FY , e approved Transmission Tariff against at estimated by GETCO for as under: Particulars Transmission Tariff Transmission Tariff estimated by GETCO approved by e Commission. Transmission tariff `. /MW/day (c) State Load Dispatch Centre (SLDC) SLDC filed its petition for Truing up for FY and Determination of Tariff for FY on dated 28 November, The Commission examined e petitions keeping in view e procedures laid down under e Electricity Act, 2003 and e relevant Rules and Regulations and admitted e petition vide Case Nos. 1386/2013 on 11 December, The Commission received objections / suggestions from one stakeholder. The Commission examined e received objections / suggestions and fixed e date for public hearing for e petition on 11 February, 2014 at e Commission s Office, Gandhinagar, and subsequently, a communication was sent to e objectors to take part in e public hearing process for presenting eir views in person before e Commission. The Commission issued its orders on e above petitions on 29 April, Truing up of : While truing up for e year , e Commission approved e revised ARR of ` lakh st compared to ARR of ` lakh approved in e MYT order dated 31 March, Based on e revenue from SLDC Fees and charges, e Commission approved e revenue surplus of ` lakh in e truing up for FY Page 13

25 Determination of SLDC fees and charges for FY : The Commission approved ARR of ` Lakh for SLDC in e MTR order dated 29 April, 2014 for FY Based on is approved ARR and truing up of FY , e Commission approved e annual charges of SLDC at ` Lakh for e FY , and e grid connection fees at `. 10,000/-. The total annual SLDC Charges shall be recovered in 12 equal monly instalments according to e formula approved by e Commission in e order dated 28 March, d,e,f,g) State Owned Distribution Companies - DISCOMs (DGVCL, MGVCL, PGVCL and UGVCL) The four state owned DISCOMs viz. DGVCL, MGVCL, PGVCL and UGVCL filed eir petitions for Truing up for FY and Determination of Tariff for FY on dated 30 November, The Commission examined e petitions keeping in view e procedures laid down under e Electricity Act, 2003 and e relevant Rules and Regulations and admitted e petition vide Case Nos. as 1371/2013, 1372/2013, rd 1373/2013 and 1370/2013 on 3 December, The Commission received objections / suggestions from twenty stakeholders. The Commission examined e received objections / suggestions and fixed e date for public hearing for e petitions on 13 February, 2014 at e Commission s Office, Gandhinagar, and subsequently, a communication was sent to e objectors to take part in e public hearing process for presenting eir views in person before e Commission. The Commission issued its orders on e above petitions on 29 April, Performance of DISCOMs during FY Actual and approved Distribution Loss of e four distribution companies in FY is shown in e Table below; Distribution Loss Approved and Actual Name of Discom Approved Loss in % Actual Loss in % DGVCL MGVCL PGVCL UGVCL It was observed at only DGVCL achieved e targeted distribution losses (Approved vis-a-vis Actuals). True up of FY While truing up for e FY for each DISCOM, e various components of ARR were compared wi e approved figures as per MYT order dated 6 September, The Commission computed e gains and losses for FY based on Truing up for each of e components. The revised ARR approved in true up of FY and ARR approved in e MYT order dated 6 September, 2011 is shown in e Table below; Page 14

26 ARR Approved ( `. Crore) Name of DISCOM ARR Approved for FY in ARR Approved in True Up MYT order dated of FY DGVCL MGVCL PGVCL UGVCL The revenue (gap)/surplus approved by e Commission as shown in e Table below; Revenue (gap)/surplus for FY (`. Crore) Name of Discom DGVCL MGVCL (27.63) PGVCL (2.53) UGVCL Revenue (gap)/surplus Furer, e Commission decided to adjust e amount of ` Crore, which was Profit After Tax in P & L Statement of e Annual Accounts of GUVNL for FY The Commission arrived e net consolidated surplus of ` Crore for four states owned DISCOMs in e FY and addressed is amount while determining e tariff for FY Determination of Tariff for FY The Commission determined e Tariff for four DISCOMs based on e ARR approved in e MTR order dated 29 April, 2014 and allowed estimated (gap)/surplus of e FY The approved ARR for FY for each DISCOMs is as shown in e Table below; ARR Approved (`. Crore) Name of DISCOM ARR Approved for FY in MTR order dated DGVCL MGVCL PGVCL UGVCL The Commission reviewed e sales projected in e Mid-term Review and approved e sales at MU in e Mid-term Review for DISCOMs. The Commission considered e total category-wise sales, as approved in e Mid-term Review Orders and recomputed e sales revenue by applying e existing tariff along wi e approved sales for each category of consumers and so also applying ` per kwh. By is, e Commission arrived e consolidated surplus of e four state owned distribution licensees for FY as ` Crore. The (gap)/surplus as estimated by e Page 15

27 Commission for FY for each DISCOMs as shown in e below table; Revenue (gap)/surplus for FY ( `. Crore) Name of Discom DGVCL MGVCL PGVCL UGVCL Revenue (gap)/surplus Due to a change in e demand charge of HTP IV category to ½ at of demand charge of HTP I for FY of e four Discoms, ere will be reduction in e surplus amount by ` Crore. The net consolidated surplus of e four distribution licensees for FY was ` Crore. Furer, on account of e Mid-term Review sought by e Petitioners and approval by e Commission based on e various parameters and Regulations of e second MYT period, e Commission felt at it might not be appropriate to reduce e tariff based on e projected surplus in FY as ere might certain changes likely in e energy sales of high value consumers due to Open Access, uncertainty st in e sale of surplus power in e market etc. In addition, CERC in its order dated 21 February, 2014 had approved some increase in Generation Tariff of Mundra UMPP and Adani Power Projects which had been appealed in APTEL, e result of which might have an impact on e DISCOMs. Commission s directives to e Discoms DISCOMs were directed to carry out e segregation of technical losses and commercial losses for FY DISCOMs were directed to submit e category wise cost-to-serve (cost of supply) report for FY DISCOMs were directed to submit e Quarterly reports on e energy audit, where meters had been installed at distribution transformers. Highlights of e Tariff Orders issued for state owned DISCOMs No increase in power tariff. Demand charge for night time usage of electricity at HT voltage level i.e. HTP IV category reduced at e rate of ½ of demand charge of HTP I category. Demand charge for temporary usage of electricity at HT voltage level rationalized in terms of `./kw/day in place of `./kw/mon basis. h,i,j) Torrent Power Ltd. (TPL) Torrent Power Limited (TPL), a private electricity company having Distribution licence for Distribution of electricity in Ahmedabad, Gandhinagar and Surat and generation facility in Ahmedabad, submitted nd eir petitions for Truing up for FY , and determination of tariff for FY on 2 December, The Commission examined e petitions keeping in view e procedures laid down under e Electricity Act, 2003 and e relevant Rules and Regulations and admitted e petition vide Case Nos. as 1376/2013, 1377/2013 and 1378/2013 on 4 December, Page 16

28 The Commission received objections / suggestions from sixteen stakeholders. The Commission examined e received objections / suggestions and fixed e date for public hearing for e petition on st 21 February, 2014 at e Commission s Office, Gandhinagar, and subsequently, a communication was sent to e objectors to take part in e public hearing process for presenting eir views in person before e Commission. The Commission issued its orders on e above petitions on 29 April, Torrent Power Ltd. - Generation (TPL - G) Performance of TPL-G during FY Electricity generation from e TPL s power plants at Sabarmati and Vatva was 2971 MUs against e approved generation of 3332 MUs in e MYT order dated 6 September, The Plant Availability Factor of E-Station & Vatva Station of TPL was higher an e approved levels of e MYT Order where as for oer stations, it was lower an what was approved. Plant Load Factors of F and Vatva stations were lower an at approved in e MYT order. The actual auxiliary consumption for all e stations was higher an at of e approved levels in e MYT order except D-station. SHR for all e stations of TPL-G were more an e approved SHR for FY in e MYT order except C & D- stations. The actual Secondary Fuel Consumption (SFC) of all e TPL-G stations for FY was lower an e SFC approved by e commission in e MYT order. The coal transit loss for TPL-Coal stations was higher an at of approved figures. True up of FY While truing up for e FY , e various components of ARR were compared wi e approved figures as per MYT order for FY issued on 6 September, The Commission computed e gains and losses for FY based on Truing up for each of e components. The Commission approved e revised ARR of ` Crore and ` Crore including incentive for FY compared to ARR of ` Crore approved in e MYT order for FY issued on 6 September, The revised ARR was considered as actual power purchase cost of power purchased from TPL-G (APP) for FY in ARR of TPL Distribution. Determination of Tariff for FY The Commission approved e Aggregate Revenue Requirement for FY for TPL-G (APP) as ` Crore in e MTR order dated 29 April, TPL was directed to submit a progress report on e implementation of e recommendations made in fuel audit report for FY of Power Stations of TPL. Torrent Power Ltd. - Distribution (Ahmedabad and Surat) Performance of TPL-D during FY Actual and approved Distribution Loss of TPL Ahmedabad and Gandhinagar (TPL-A) and TPL Surat (TPL-S) in FY is shown in e Table below; Page 17