ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 1
MADHYA PRADESH ELECTRICITY REGULATORY COMMISSION
5
th
Floor, Metro Plaza, Bittan Market, Bhopal - 462 016
Petition No. 84/2022
PRESENT:
S.P.S. Parihar, Chairman
Gopal Srivastava, Member (Law)
IN THE MATTER OF:
Determination of Aggregate Revenue Requirement (ARR) and Retail Supply
Tariff for FY 2023-24 based on the ARR & Tariff Petition filed by the Distribution
Licensees namely Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company
Limited (East DISCOM), Madhya Pradesh Paschim Kshetra Vidyut Vitaran
Company Limited (West DISCOM), Madhya Pradesh Madhya Kshetra Vidyut
Vitaran Company Limited (Central DISCOM), and M.P. Power Management
Company Limited (MPPMCL).
AGGREGATE REVENUE REQUIREMENT AND RETAIL
SUPPLY TARIFF ORDER FOR FY 2023-24
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 2
Table of Contents
A1: ORDER……………………………………………………………………………………10
A2: AGGREGATE REVENUE REQUIREMENT FOR PETITIONERS………………..19
Sales Forecast ................................................................................................................................. 19
Energy Balance ............................................................................................................................... 22
Assessment of Energy Availability ............................................................................................... 24
Assessment of Power Purchase Cost ............................................................................................ 38
Renewable Purchase Obligation (RPO) ....................................................................................... 60
Management of Surplus Energy ................................................................................................... 63
Inter-State Transmission Charges ................................................................................................ 66
Intra-State Transmission Charges and SLDC Charges ............................................................. 67
MPPMCL Costs: Details and DISCOM-wise Allocation ........................................................... 69
Summary of Power Purchase Cost ............................................................................................... 71
Capital Expenditure Plans/ Capitalization of Assets .................................................................. 72
Operations and Maintenance Expenses ....................................................................................... 75
Depreciation .................................................................................................................................... 82
Interest and Finance Charges ....................................................................................................... 85
Interest on Working Capital ......................................................................................................... 90
Interest on Consumer Security Deposit ....................................................................................... 93
Return on Equity (RoE) ................................................................................................................ 94
Bad and doubtful debts ................................................................................................................. 97
Other Income .................................................................................................................................. 98
Differential Bulk Supply Tariff (DBST) .................................................................................... 100
Revenue from Existing and Admitted Tariffs and Gap/Surplus ............................................. 107
A3: WHEELING CHARGES, CROSS SUBSIDY SURCHARGE AND ADDITIONAL
SURCHARGE…………………………………………………………………………………...111
Determination of Wheeling Cost ................................................................................................ 111
Determination of Cross-Subsidy Surcharge .............................................................................. 115
Determination of Additional Surcharge .................................................................................... 120
A4: GREEN ENERGY TARIFF……………………………………………………………122
A5: FUEL AND POWER PURCHASE ADJUSTMENT SURCHARGE……………….138
A6: RETAIL TARIFF DESIGN ……………………………………………………………144
Legal Position ............................................................................................................................... 144
Commission’s Approach to Tariff Determination .................................................................... 144
Linkage to Average Cost of Supply ............................................................................................ 144
A7: COMPLIANCE OF DIRECTIVES ISSUED IN TARIFF ORDER FOR FY 2022-
23…………………………………………………………………………………………………149
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 3
A8: PUBLIC SUGGESTIONS AND COMMENTS ON LICENSEES’ PETITIONS…..164
Annexure-1 (List of Stakeholders) ............................................................................................. 194
Annexure-2 (Tariff Schedules for Low Tension Consumers) .................................................. 199
Annexure-3 (Tariff Schedules for High Tension Consumers) ................................................. 225
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 4
List of Tables
Table 1 : List of Newspapers- Public Notice published by the Petitioners ......................................... 11
Table 2 : Summary of Tariff proposal for FY 2023-24 as submitted by Petitioners (Rs. Crore) ........ 11
Table 3: Status of meterisation of un-metered rural domestic consumers ........................................... 12
Table 4: Status of meterisation of agricultural DTRs .......................................................................... 13
Table 5: Distribution Loss Trajectory specified in the Regulations .................................................... 13
Table 6: Actual Distribution Loss for FY 2021-22 .............................................................................. 14
Table 7: ARR admitted by the Commission for FY 2023-24 (Rs. Crore) ........................................... 15
Table 8: ARR admitted and Revenue at Existing/Approved Tariff for FY 2023-24 (Rs. Crore) ........ 16
Table 9: Category wise sales projected by Petitioners for FY 2023-24 (MU) .................................... 20
Table 10: Category wise sales admitted by the Commission for State for FY 2023-24 (MUs) .......... 21
Table 11: Energy Requirement proposed by Petitioners for FY 2023-24 (MU) ................................. 23
Table 12: Loss targets as per Regulations (in %) ................................................................................ 23
Table 13: Energy requirement admitted by the Commission for FY 2023-24 .................................... 24
Table 14: Upcoming Stations and Technical Parameters .................................................................... 25
Table 15: Allocated stations submitted by the Petitioners for FY 2023-24 ......................................... 26
Table 16: Power Plant Wise backing down considered by the Petitioners for FY 2023-24 (MU) ...... 29
Table 17: Total Availability of Energy submitted by the Petitioners for FY 2023-24 (MU) .............. 31
Table 18: Allocation of Generating Station considered by the Commission for FY 2023-24 ............ 32
Table 19 : Month wise energy availability projection for FY 2023-24 (MU) ..................................... 36
Table 20 : Fixed cost and Energy charges of MPPMCL allocated stations as submitted by the
……..Petitioners for FY 2023-24 ................................................................................................ 38
Table 21 : MOD for FY 2023-24 as submitted by the Petitioners ....................................................... 44
Table 22 : Fixed cost and Energy cost as Claimed by Petitioners for FY 2023-24 (Rs. Crore) .......... 46
Table 23: Basis of Fixed and Energy charges for the generating stations for FY 2023-24 ................. 51
Table 24: MOD on allocated generating stations for FY 2023-24 ...................................................... 56
Table 25 : Fixed and Energy Charges of all generating stations admitted for FY 2023-24 ................ 58
Table 26: Renewable Purchase Obligation and Cost as submitted by the Petitioners for FY 2023-24
...................................................................................................................................................... 60
Table 27: Renewable Purchase Obligation and Cost as computed by the Commission for FY 2023-24
...................................................................................................................................................... 61
Table 28: RE power purchase cost for RPO compliance for FY 2023-24 ........................................... 62
Table 29: Management of Surplus Energy as submitted by Petitioners .............................................. 64
Table 30: Surplus Energy information for last 3 years as submitted by Petitioners ............................ 65
Table 31 : Details of saving in power purchase cost through sale of Surplus energy ......................... 66
Table 32: Inter-State Transmission Charges claimed for FY 2023-24 (Rs. Crore) ............................. 67
Table 33: Inter-State Transmission Charges admitted for FY 2023-24 (Rs. Crore) ............................ 67
Table 34: Intra-State Transmission Charges and SLDC charges claimed for FY 2023-24 (Rs. Crore)
...................................................................................................................................................... 67
Table 35 : Intra-State Transmission Charges including SLDC Charges admitted for FY 2023-24
…….(Rs.Crore) ............................................................................................................................ 68
Table 36: MPPMCL Cost claimed for FY 2023-24 (Rs. Crore) .......................................................... 69
Table 37: MPPMCL Costs/ Income admitted by the Commission for FY 2023-24 (Rs. Crore) ........ 70
Table 38: Power Purchase Cost as filed by Petitioners for FY 2023-24 (Rs. Crore) .......................... 71
Table 39 : Total Power Purchase cost admitted for FY 2023-24 (Rs. Crore) ...................................... 71
Table 40: Capital Expenditure Plan for FY 2023-24 (Rs. Crore) ........................................................ 74
Table 41 : DISCOM-wise proposed capitalization and bifurcation of CWIP (Rs. Crore) .................. 74
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 5
Table 42: Projected Asset Capitalization considered by the Commission for FY 2023-24 (Rs. Crore)
...................................................................................................................................................... 75
Table 43: Escalation Rate for FY 2021-22 and FY 2022-23 (%) ....................................................... 76
Table 44: Dearness Allowance Considered (%) .................................................................................. 77
Table 45: Additional OPEX submitted by the Petitioners (Rs Crore) ................................................. 78
Table 46: O&M Expenses Claimed by the Petitioners for FY 2023-24 (Rs. Crore) .......................... 78
Table 47: Escalation Rate admitted for FY 2021-22 and FY 2022-23 (%) ........................................ 80
Table 48: Operation and Maintenance Expenses admitted for FY 2023-24 (Rs. Crore) ..................... 81
Table 49: Depreciation claimed for FY 2023-24 (Rs. Crore) .............................................................. 82
Table 50: Depreciation admitted for FY 2023-24 (Rs. Crore) ............................................................. 85
Table 51: Interest on Project Loan claimed for FY 2023-24 (Rs. Crore) ............................................ 86
Table 52: Interest and finance charges admitted for FY 2023-24 (Rs. Crore) .................................... 89
Table 53: Interest on Working Capital claimed for 2023-24 (Rs Crore) ............................................. 90
Table 54: Interest on Working Capital admitted by the Commission (Rs. Crore) .............................. 92
Table 55: Interest on Consumer Security Deposit claimed by the Petitioners for FY 2023-24 (Rs.
……Crore) ................................................................................................................................... 93
Table 56: Interest on Consumer Security Deposit (CSD) admitted for FY 2023-24 (Rs. Crore) ........ 94
Table 57: Return on Equity Claimed by the Petitioners for FY 2023-24 (Rs. Crore) ......................... 94
Table 58: Return on Equity admitted for FY 2023-24 (Rs. Crore) ...................................................... 97
Table 59: Provision for Bad and Doubtful Debts Claimed for FY 2023-24 (Rs Crore) ...................... 97
Table 60: Other Income and Non-Tariff Income for FY 2023-24 (Rs Crore) ..................................... 99
Table 61: Total actual other income as per true-up orders (Rs Crore) .............................................. 100
Table 62: Other Income admitted for FY 2023-24 (Rs. Crore) ......................................................... 100
Table 63: DBST submitted by the Petitioners for FY 2023-24 (Rs Crore) ....................................... 101
Table 64: Differential Bulk Supply Tariff Admitted by the Commission for FY 2023-24 (Rs Crore)
.................................................................................................................................................... 102
Table 65: Aggregate Revenue Requirement (ARR) admitted for State for FY 2023-24 (Rs Crore) 103
Table 66: Admitted ARR for Wheeling Business for FY 2023-24 (Rs. Crore) ................................ 105
Table 67: Admitted ARR for Supply Business for FY 2023-24 (Rs. Crore) ..................................... 106
Table 68: Revenue at Existing and proposed Tariff submitted by Petitioner for FY 2023-24 (Rs.
……Crore) ................................................................................................................................. 107
Table 69: Gap/Surplus for FY 2023-24 as submitted by the Petitioner ............................................. 109
Table 70: Revenue including Rebate/ Incentives at Existing and Admitted Tariffs for FY 2023-24
……(Rs. Crore) .......................................................................................................................... 109
Table 71: Final ARR and Revenue from existing tariffs for FY 2023-24 (Rs Crore) ....................... 110
Table 72: Final ARR and Revenue from admitted tariffs for FY 2023-24 (Rs Crore) ...................... 110
Table 73 : Wheeling Charges submitted by the Petitioners for FY 2023-24 ..................................... 111
Table 74 : Voltage level-wise Cost Break-up of Sub transmission & Distribution Lines ................. 113
Table 75: Voltage level-wise cost of Transformer ........................................................................... 113
Table 76 : Identification of value of network at different each voltage level (Rs. Crore) ................. 113
Table 77 : Identification of network expenses (wheeling cost) at different voltage levels ............... 113
Table 78 : Sales at different voltage levels ........................................................................................ 114
Table 79 : Allocation of wheeling cost over Distribution System Users at 33 kV ............................ 114
Table 80 : Allocation of wheeling cost over Distribution System Users at 11 kV ............................ 114
Table 81 : Wheeling Charges at different Voltage levels .................................................................. 115
Table 82 : Weighted average cost of power purchase by the Licensee including cost of meeting the
…….Renewable Purchase Obligation ....................................................................................... 116
Table 83 : Voltage-wise losses .......................................................................................................... 117
Table 84 : Transmission Charges ....................................................................................................... 117
Table 85: Average Billing Rate (ABR) for FY 2023-24 at approved tariff (Rs./kWh) ..................... 117
Table 86 : Illustration of Computation of Cost for Cross Subsidy Surcharge (Rs. per unit) ............. 118
Table 87: Category wise Cross Subsidy Surcharge as per above Illustration (Rs. Per unit) ............. 118
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 6
Table 88 : Computation of Additional Surcharge Submitted by the Petitioners for FY 2023-24 ..... 120
Table 89 : Determination of Additional Surcharge for FY 2023-24 ................................................. 121
Table 90 : Green Energy Tariff proposed by the Petitioners for FY 2023-24 ................................... 122
Table 91 : Proposed Green Energy Tariff for RPO compliance of an entity FY 2023-24 ................ 128
Table 92 : Proposal for Green Energy Tariff for FY 2023-24 ........................................................... 129
Table 93 : Green Energy Charges ( for the consumers who wish to procure RE Power for the purpose
……..of reducing their carbon footprint and seeking Certification to this effect) approved by the
……..Commission for FY 2023-24 ........................................................................................... 131
Table 94 : Effective Cost of Pooled Power Purchase of RE sources ................................................. 133
Table 95 : Computation of Incremental Green Energy Charges for consumers for FY 2023-24 ...... 135
Table 96 : Green Energy Charges for FY 2023-24 ............................................................................ 136
Table 97 : Computation of voltage-wise cost of supply for the State for FY 2023-24...................... 145
Table 98: Cross-subsidy based on voltage-wise cost of supply for FY 2023-24 for the State ......... 146
Table 99: Comparison of tariff v/s overall average cost of supply ................................................... 147
Table 100 : List of Newspapers- Public Notice published by Petitioner ........................................... 164
Table 101 : Public Suggestions/Comments on the Petition ............................................................... 164
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 7
List of Abbreviations
A&G
Administrative and General Expenses
AB Cable
Aerial Bunched Cable
APTEL
Appellate Tribunal for Electricity
ARR
Aggregate Revenue Requirement
AS
Additional Surcharge
AT&C
Aggregate Technical and Commercial
ATPS
Amarkantak Thermal Power Station
BPSA
Bulk Power Supply Agreement
CAGR
Compounded Annual Growth Rate
CEA
Central Electrical Authority
CERC
Central Electricity Regulatory Commission
CFA
Cash Financial Assistance
CGS
Central Generating Station
CHPS
Chambal Hydro Power Scheme
COD
Commercial Date of Operation
CUF
Capacity Utilisation Factor
CPP
Captive Power Plants
CSD
Consumer Security Deposit
CSS
Cross Subsidy Surcharge
CTPS
Chandrapur Thermal Power Station
CWIP
Capital Works in Progress
DA
Dearness Allowance
DBST
Differential Bulk Supply Tariff
DISCOM
Distribution Company
DSM
Deviation Settlement Mechanism
DTR
Distribution Transformer
DVC
Damodar Valley Corporation
EHT
Extra High Tension
ER
Eastern Region
FPPAS
Fuel and Power Purchase Adjustment Surcharge
FCA
Fuel Cost Adjustment
FY
Financial Year
GFA
Gross Fixed Asset
GoI
Government of India
GoMP
Government of Madhya Pradesh
GPP
Gas Power Plant
GST
Goods and Services Tax
HP
Horse Power
HPS
Hydro Power Station
HT
High Tension
IDC
Interest During Construction
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 8
IEX
Indian Energy Exchange
IND-AS
Indian Accounting Standards
ISPS
Indira Sagar Power Station
IPDS
Integrated Power Development Scheme
IPP
Independent Power Producer
KAPS
Kakrapar Atomic Power Station
kV
kilo Volt
kVA
kilo Volt Ampere
kVAh
kilo Volt Ampere hour
kW
kilo Watt
kWh
kilo Watt hour
LED
Light Emitting Diode
LT
Low Tension
MD
Maximum Demand
MOD
Merit Order Despatch
MP
Madhya Pradesh
MPERC
Madhya Pradesh Electricity Regulatory Commission
MPPGCL or
MP Genco
Madhya Pradesh Power Generating Company Limited
MPPMCL or
MP Transco
MP Power Management Company Limited
MPPTCL
Madhya Pradesh Power Transmission Company Limited
MPSEB
Madhya Pradesh State Electricity Board
MTPS
Mejia Thermal Power Plant
MU
Million Unit
MVA
Mega Volt Ampere
MW
Mega Watt
MYT
Multi-Year Tariff
NHDC
Narmada Hydroelectric Development Corporation
NPS
New Pension Scheme
NTPC
NTPC Limited
O&M
Operation & Maintenance
OA
Open Access
OHP
Omkareshwar Hydro Project
PAF
Plant Availability Factor
PF
Provident Fund
PGCIL
Power Grid Corporation of India Ltd.
PLF
Plant Load Factor
PoC
Point of Connection
PPA
Power Purchase Agreement
PPCA
Power Purchase Cost Adjustment
PTR
Power Transformer
PWW
Public Water Works
PXIL
Power Exchange India Limited
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Madhya Pradesh Electricity Regulatory Commission Page 9
R&M
Repair & Maintenance
RBI
Reserve Bank of India
RSD
Reserve Shut Down
RDSS
Revamped Distribution Sector Scheme
RGGVY
Rajiv Gandhi Grameen Vidyutikaran Yojana
RoE
Return on Equity
RPO
Renewable Purchase Obligation
SAC
State Advisory Committee
SBI
State Bank of India
SEZ
Special Economic Zone
SGTPS
Sanjay Gandhi Thermal Power Station
SLDC
State Load Despatch Centre
SSP
Sardar Sarovar Project
STPS
Super Thermal Power Station
TAPS
Tarapur Atomic Power Station
TBT
Terminal Benefit Trust
TMM
Technical Minimum
ToD
Time of Day
TPS
Thermal Power Station
TP
Tariff Policy
UDAY
Ujwal DISCOM Assurance Yojana
UMPP
Ultra Mega Power Plant
UI
Unscheduled Interchange
VAT
Value Added Tax
WR
Western Region
WRPC
Western Regional Power Committee
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 10
A1: ORDER
(Passed on this 28
th
Day of March, 2023)
1.1 This order is in response to the Petition No. 84 of 2022 jointly filed by Madhya Pradesh Poorv
Kshetra Vidyut Vitaran Company Limited, Jabalpur, Madhya Pradesh Paschim Kshetra
Vidyut Vitaran Company Limited, Indore, and Madhya Pradesh Madhya Kshetra Vidyut
Vitaran Company Limited, Bhopal (hereinafter individually referred to as East DISCOM,
West DISCOM and Central DISCOM, respectively, and collectively referred to as DISCOMs
or Distribution Licensees or Licensees or the Petitioners), and MP Power Management
Company Limited, Jabalpur (hereinafter referred as the MPPMCL or collectively with
DISCOMs referred to as the Petitioners) before Madhya Pradesh Electricity Regulatory
Commission (hereinafter referred to as MPERC or the Commission). This Petition has been
filed under the provisions of “Madhya Pradesh Electricity Regulatory Commission (Terms
and Conditions for Determination of Tariff for Supply and Wheeling of Electricity and
Methods and Principles for Fixation of Charges) Regulations, 2021 and amendments thereof
{RG-35(III) of 2021}” {hereinafter referred to as the MYT Regulations, 2021 or
Regulations}.
1.2 The Petitioners jointly filed a Petition bearing Petition No. 84 of 2022 on 30
th
November,
2022. The motion hearing on the Petition was held by the Commission on 06
th
December,
2022, vide which the Commission admitted the Petition and directed the Petitioners to submit
draft public notice for approval of the Commission.
1.3 The Commission vide letter dated 22
nd
December, 2022 sought clarification/ information to
fill data gaps, based on the scrutiny of the Petition. Thereafter, the Commission vide letter
dated 28
th
December, 2022 received communications from Petitioners for extension of time
by 15 days for submission of additional information and reply to fill data gaps. The
Commission vide letter dated 03
rd
January, 2023 allowed 7 days additional time for furnishing
the additional information to fill data gaps.
1.4 The Petitioners submitted the consolidated response to fill data gaps by way of clarifications
and additional information vide letter dated 13
th
January, 2023. The Petitioners furnished
another submission vide letter dated 28
th
February, 2023 relating to Metro Rail Tariff,
Wheeling Charges, Peak ToD Slots and Green Energy Tariff.
1.5 The Commission vide letter dated 21
st
December, 2022, directed the Petitioners to publish the
public notice as approved by the Commission in Hindi and English in the prominent
newspapers of the State for inviting objections /comments/suggestions from the stakeholders
on the subject Petition (Petition No. 84 of 2022) by 16
th
January, 2023. Accordingly, the
Petitioners published the public notice in the following newspapers as shown in the table
below:
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 11
Table 1 : List of Newspapers- Public Notice published by the Petitioners
Newspaper
Language
Dainik Bhaskar, Jabalpur
Hindi
Dainik Bhaskar, Sagar
Hindi
Deshbandhu, Satna
Hindi
Hitvada, Jabalpur
English
Nai Duniya, Indore
Hindi
Times of India, Indore
English
Peoples Samachar, Bhopal
Hindi
Dainik Bhaskar, Bhopal
Hindi
Navbharat, Gwalior
Hindi
Raj Express, Gwalior
Hindi
Times of India, Bhopal
English
1.6 In response to public notice, the Commission received 132 comments (East DISCOM: 44
Nos., West DISCOM: 63 Nos., Central DISCOM: 25 Nos.) from different stakeholders. The
Commission scheduled Public Hearings on 23
rd
January, 2023 for East DISCOM, 24
th
January, 2023 for West DISCOM and 25
th
January, 2023 for Central DISCOM through video
conferencing and heard the objections/comments/suggestions of stakeholders.
1.7 Details of objections/suggestions/comments received and response thereon from the
Petitioners alongwith views of the Commission are given in Chapter ‘A8: Public Objections/
suggestions and Comments on Petition’ of this order.
Disclaimer for Rounding
1.8 In this Order certain numbers as a whole, upto several decimal places have been rounded up
or down. Therefore, there may be discrepancies between the totals of the individual numbers
shown in the tables upto 2 decimal places and numbers given in the corresponding analyses
in the text of this order.
Snapshot of Petition
1.9 The Petitioners through instant Petition have submitted the Revised ARR for FY 2023-24 and
tariff proposal for FY 2023-24. The Petitioners have prayed to approve the net ARR of Rs
49,530 Crore and the revenue gap of Rs. 1,537 Crore for FY 2023-24 and to recover the same
through a tariff hike of 3.20%. Summary of the Tariff proposal as submitted by the Petitioners
for FY 2023-24 is as follows:
Table 2 : Summary of Tariff proposal for FY 2023-24 as submitted by Petitioners (Rs. Crore)
Particulars
West
DISCOM
State
Aggregate Revenue Requirement
19,328.69
49,529.81
Revenue from sale of power as per
existing tariff
18,726.88
47,992.32
Revenue Gap for FY 2023-24
601.81
1,537.49
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Madhya Pradesh Electricity Regulatory Commission Page 12
State Advisory Committee
1.10 The Commission convened a meeting of State Advisory Committee (SAC) on 30
th
January,
2023 through video conferencing. SAC members provided valuable suggestions on the instant
Retail Tariff Petition including suggestions pertaining to sales projections, treatment of
surplus energy, concept of green energy tariff, terms and conditions of tariff, etc. The
Commission has taken due cognisance of these issues while determining the ARR and Tariff
for FY 2023-24.
Energy Accounting, Meterisation and technical & commercial loss reduction
1.11 The Commission has been emphasising the importance of energy accounting and meterisation
from time to time separately and through previous Tariff Orders. Need for proper Energy
Accounting and Energy Audit at various levels such as sub-stations, distribution feeders and
distribution transformers as well as at the consumer end was also impressed upon the
DISCOMs so as to provide reliable data about the actual level of technical and commercial
losses. DISCOMs were directed to prepare and implement appropriate loss reduction
strategies and schemes. Meterisation at various levels of the distribution network such as
Feeder/ DTR and consumer metering is of prime importance to identify high loss areas and
to take action to curb losses. The DISCOMs have achieved 100% meterisation of the domestic
connections in urban area but the progress in DTR and consumer metering in rural areas is
not satisfactory. There appears to be substantial progress with regard to Feeder meterisation,
while meterisation of agricultural DTRs remains neglected by DISCOMs. With regard to
individual un-metered domestic connections in rural areas, West DISCOM has almost
completed the meterisation, whereas, East and Central DISCOMs have unmetered Domestic
Rural connections upto the level of 8.41% and 13.61%, respectively. For East and Central
DISCOMs, the Commission has taken a serious note on the poor progress of meterisation in
this category and is of the opinion that concerted efforts need to be made to account for the
energy at all stages including the Rural Domestic connections. The first step to do so is to
meterise all the remaining connections. The energy accounting needs to be carried out on a
system driven approach on regular basis. The Commission has also observed that there are
number of existing Feeder meters, which are lying defective and need prompt replacements.
The status as per periodic reports submitted by DISCOMs with regard to meterisation of un-
metered rural domestic connections and agricultural predominant DTRs up to December,
2022 is given below:
Table 3: Status of meterisation of un-metered rural domestic consumers
DISCOM
Domestic Rural
Total no. of
connections
No. of un-metered
connections
Percentage (%)
Un-metered
East DISCOM
33,43,261
2,81,139
8.41%
West DISCOM
23,03,806
22,123
0.96%
Central DISCOM
20,29,150
2,76,244
13.61%
State
76,76,217
5,79,506
7.55%
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Madhya Pradesh Electricity Regulatory Commission Page 13
Table 4: Status of meterisation of agricultural DTRs
DISCOMs
Agricultural DTR
Total no. of Pre-
Dominant
Agricultural DTRs
No. of DTRs
provided with
meters
Percentage (%) of
DTRs provided
with meters
East DISCOM
1,11,890
11,909
10.64%
West DISCOM
1,95,584
36,231
18.52%
Central DISCOM
2,86,057
64,139
22.42%
State
5,93,531
1,12,279
18.92%
1.12 The Commission would like to emphasize that the directive for meterisation of agriculture
predominant DTRs is an interim arrangement till meters on all individual agriculture
connections are provided. The Commission is of the firm view that all consumers should be
metered individually. The present regime of billing on benchmark consumption to either
domestic or agriculture consumers provides no incentive for energy saving by the consumers
and it makes accounting of actual losses impossible. The Commission has noted that the rate
of meterisation of Agriculture DTRs is extremely slow and it needs to be enhanced. Without
proper metering system in place, it is not possible to assess the demand and to perform energy
audit of the agriculture consumers. The Commission, therefore, directed the DISCOMs to
expedite feeder meterisation including replacement of defective meters and DTR meterisation
on priority basis. There is also a need to segregate Technical and Commercial losses.
1.13 The purpose of providing meters on agriculture DTRs is to assess the consumption of flat rate
agriculture consumers and perform energy audit in order to have a proper data on Distribution
losses. The Commission desires that the DISCOMs should perform energy audit on the
agriculture DTRs where the meters have already been installed. DISCOMs are also identified
as designated consumers under Perform, Achieve and Trade (PAT) scheme within the
framework of Energy Conservation Act, 2001. DISCOMs are required to conduct energy
audit as per Bureau of Energy Efficiency (BEE) (Manner and Intervals for Conduct of Energy
Audit in Electricity Distribution Companies) Regulations, 2021. It is expected that East and
Central DISCOMs will also take all measures to comply with energy audit requirements laid
down under the Energy Conservation Act, 2001.
1.14 In the earlier Tariff Orders, the Commission had directed the Petitioners to make concerted
efforts to reduce the distribution losses in line with the loss trajectory specified by the
Commission. The Commission has provided sufficient time to the DISCOMs and specified
the loss reduction trajectory with achievable targets. The loss reduction trajectory specified
in the MYT Regulations, 2021 for the period from FY 2022-23 to FY 2026-27 is given in the
following table:
Table 5: Distribution Loss Trajectory specified in the Regulations
DISCOMs
FY 2022-23
FY 2023-24
FY 2024-25
FY 2025-26
FY 2026-27
East DISCOM
15.75%
15.50%
15.25%
15.00%
14.75%
West DISCOM
14.75%
14.50%
14.25%
14.00%
13.75%
Central DISCOM
16.75%
16.50%
16.25%
16.00%
15.75%
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 14
1.15 Against the aforesaid targets, the actual loss level for FY 2021-22 reported by the DISCOMs
in the Tariff Petition is as follows:
Table 6: Actual Distribution Loss for FY 2021-22
DISCOMs
FY 2021-22
East DISCOM
27.40%
West DISCOM
11.61%
Central DISCOM
24.67%
1.16 The Commission appreciates the performance of West DISCOM for achieving lower
Distribution losses in comparison with the loss trajectory specified by the Commission. On
the other hand, it is observed that the loss levels in other two DISCOMs are much higher than
the loss trajectory specified and needs immediate corrective steps. The stakeholders, in their
objections, have also pointed out and shown concern over the high loss level of the DISCOMs.
It has been submitted by stakeholders that the higher loss level is adversely affecting the
financial viability of DISCOMs as well as services to be delivered to their consumers. The
Commission has allowed only normative losses in the Tariff Order, so that consumers are not
burdened on account of the inefficiencies of the Distribution Licensees.
1.17 In order to bail out the DISCOMs from high debt and to ensure financial turnaround of the
DISCOMs, the Government of India had launched Ujwal DISCOM Assurance Yojana
(UDAY). Madhya Pradesh also participated in the UDAY scheme and committed to reduce
AT&C losses as per prescribed targets in a time bound manner. The Commission had admitted
the capital investment schemes of the DISCOMs in the past years for reduction of losses. The
Government of India is also providing financial and technological support to the DISCOMs
through various schemes. However, it appears that the Central and East DISCOMs are lacking
in implementation of these schemes resulting in failure to reduce the distribution losses to
desired levels.
1.18 One of the reasons for high losses is unmetered connections and improper energy accounting.
Large number of unmetered connections and stopped/defective meters with slow pace of
replacement is resulting in lower billing efficiency. Inadequate energy audit system at feeders
as well as DTR level is not allowing to fix the accountability and hence, system is running as
usual. In the last Tariff Order, the Commission had directed the DISCOMs to install meters
on the remaining unmetered predominant agricultural DTRs for proper energy accounting and
for recording consumption by the agricultural pumps. However, the progress in this regard is
still far from satisfactory. The East and Central DISCOMs also need to focus on meterisation
of rural unmetered Domestic connections. The Commission would like to draw attention of
the State Government in this regard and emphasizes the need to implement a concrete program
to achieve the targeted loss level in a time bound manner for making the DISCOMs financially
viable.
1.19 The Commission has noted that the Government of India has launched Revamped Distribution
Sector Scheme (RDSS) with an objective of improving quality, reliability and affordability of
Power Supply to consumers through a financially sustainable and operationally efficient
distribution sector. The scheme has targeted to reduce AT&C losses to pan-India levels of 12-
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 15
15% and to reduce ACS & ARR gap to zero by FY 2024-25. This scheme is reforms based
and result linked. DISCOMs of the State are participating in the scheme and committed to
reduce AT&C losses as per prescribed targets under the approved Scheme for Madhya
Pradesh in a time bound manner. The Commission has admitted the capital investment plan
under RDSS and directed the Petitioners that outcome of the capital investment under RDSS
be monitored closely and that envisaged results through capital investment are met in a timely
manner.
Aggregate Revenue Requirement of DISCOMs
1.20 The Commission has determined the revised ARR and Retail Supply Tariff for FY 2023-24
for the DISCOMs in this order as shown below in the table:
Table 7: ARR admitted by the Commission for FY 2023-24 (Rs. Crore)
Particulars
East DISCOM
West DISCOM
Central DISCOM
State
Claimed
Admitted
Claimed
Admitted
Claimed
Admitted
Claimed
Admitted
Power Purchase Cost including
Inter-State Transmission Charges
7,694.38
9,163.32
16,855.22
14,743.63
10,472.32
11,737.90
35,021.92
35,644.84
Intra-State Transmission
including SLDC Charges
1,288.68
1,290.73
1,543.98
1,544.05
1,502.35
1,504.67
4,335.01
4,339.45
O&M Expenses
1,907.31
1,875.67
1,812.03
1,744.43
1,801.31
1,828.55
5,520.64
5,448.66
Depreciation
295.86
241.02
345.77
141.99
395.36
276.97
1,036.98
659.98
Interest & Finance Charges
On Project Loans
281.95
281.10
145.45
148.94
348.39
366.90
775.78
796.95
On Working Capital Loans
78.28
68.43
17.15
10.58
39.51
57.81
134.95
136.81
On Consumer Security Deposit
53.19
42.83
68.29
85.25
58.26
59.09
179.73
187.17
Return on Equity
234.51
231.54
174.91
172.41
277.25
270.16
686.67
674.11
Bad & Doubtful Debts
2.00
0.00
2.00
0.00
2.00
0.00
6.00
0.00
Total Expenses Admitted
11,836.16
13,194.64
20,964.78
18,591.27
14,896.74
16,102.06
47,697.68
47,887.97
Less: Other income and Non-
Tariff Income
186.01
132.98
202.80
147.66
183.31
142.65
572.12
423.29
Total ARR Admitted
11,650.15
13,061.66
20,761.98
18,443.60
14,713.43
15,959.42
47,125.57
47,464.68
Revenue at Existing Tariff
13,395.46
13,265.45
18,726.88
18,731.47
15,869.98
16,200.87
47,992.32
48,197.80
Revenue Gap/(Surplus) at
Existing Tariff
(1,745.32)
(203.79)
2,035.11
(287.87)
(1,156.54)
(241.45)
(866.76)
(733.12)
1.21 From above, it can be observed that the Commission has admitted standalone ARR (excluding
true up of previous years) of Rs. 47,464.68 Crore for FY 2023-24 against the Petitioners claim
of Rs. 47,125.57 Crore. The Commission in approval of ARR has undertaken thorough review
of the Petitioners submission and has admitted only the prudent expenses in accordance with
the provision of the MYT Regulations, 2021 and amendments thereof. Instead of considering
actual loss level, the Commission allowed ARR on normative loss level specified by the
Commission, so that inefficiency of the Distribution Licensee is not passed on to the
Consumers. The revenue for FY 2023-24 at existing tariff is Rs. 48,197.80 Crore.
Accordingly, on standalone basis for FY 2023-24, the DISCOMs are in revenue surplus of
Rs. 733.12 Crore. The Commission has recently approved following True Ups Order for
MPPGCL, MPPTCL and DISCOMs as follows:
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 16
(i) Revenue Gap of Rs. 1,648.21 Crore in True Up of ARR of FY 2021-22 of DISCOMs
approved vide order dated 20
th
March, 2023.
(ii) Revenue Gap of Rs.762.11 Crore in True Up of ARR of FY 2021-22 of MP Power
Transmission Company Ltd. approved vide order dated 07
th
March, 2023.
(iii)Revenue Surplus of Rs. 1,026.52 Crore in True Up of ARR of FY 2020-21 of MP
Genco approved vide order dated 30
th
December, 2022.
1.22 These true-up amounts (Surplus/Gap) have been admitted by the Commission after carrying
out due diligence and the same needs to be considered while approving ARR and tariff for
FY 2023-24 to enable recovery of the same for DISCOMs. Therefore, considering the above
true ups, the revenue gap at existing tariff for FY 2023-24 works out as Rs.794.87 Crore. In
order to allow recovery of the same, the Commission in this Order has allowed a tariff hike
of 1.65% against the Petitioners claim of 3.20%.
1.23 The ARR admitted for the DISCOMs for FY 2023-24, Revenue at Existing Tariff and
Proposed/Admitted Tariff is shown in the following table:
Table 8: ARR admitted and Revenue at Existing/Approved Tariff for FY 2023-24 (Rs. Crore)
Particulars
East DISCOM
West DISCOM
Central DISCOM
State
Claimed
Admitted
Claimed
Admitted
Claimed
Admitted
Claimed
Admitted
Total ARR (excluding True-up)
11,650.15
13,061.66
20,761.98
18,443.60
14,713.43
15,959.42
47,125.57
47,464.68
Revenue Gap of MP Transco
True-up of FY 2020-21
72.98
72.98
22.25
22.25
48.96
48.96
144.19
144.19
Revenue Surplus of MP Genco
True-up of FY 2020-21
(338.61)
(342.17)
(338.61)
(342.17)
(338.61)
(342.17)
(1,015.83)
(1,026.52)
Revenue Gap of MP DISCOMs
True-up of FY 2021-22
2,436.21
455.58
(1,116.94)
635.80
1,956.61
556.83
3,275.88
1,648.21
Revenue Gap of MP Transco
True-up of FY 2021-22
-
232.50
-
284.08
-
245.53
-
762.11
Total ARR (including True-up)
13,820.73
13,480.54
19,328.69
19,043.56
16,380.39
16,468.57
49,529.81
48,992.66
Revenue at Existing Tariff
13,395.46
13,265.45
18,726.88
18,731.47
15,869.98
16,200.87
47,992.32
48,197.80
Revenue Gap at Existing Tariff
425.26
215.09
601.81
312.09
510.42
267.69
1,537.49
794.87
Revenue at Proposed Tariff
13,820.73
13,480.54
19,328.69
19,043.56
16,380.39
16,468.57
49,529.81
48,992.66
Revenue Gap/(Surplus) at
Proposed Tariff
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.24 The Commission would like to highlight here that the utmost care is taken by the Commission
while approving the ARR, Retail Tariff, so that inefficiency of the DISCOMs is not passed
onto the consumers of the State. It is notable that in true up of FY 2021-22, the Petitioner had
claimed revenue gap of Rs. 3,275.88 Crore. However, the Commission after exercising
prudence check of the said claim and considering the stakeholders observations has admitted
revenue gap of Rs. 1,648.21 Crore, thereby disallowing expenses towards inefficiency of the
DISCOMs.
1.25 The Licensees are directed to keep in view the provision of relevant Regulations and ensure
compliance with performance criteria. They are also encouraged to avail incentives in terms
of R&M expenses and Return on Equity, which are available for better performance for
improving consumer services.
1.26 In case of grant of tariff subsidy by the State Government for consumers, action as mandated
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 17
under Section 65 of the Electricity Act, 2003 shall be ensured by all concerned and such
consumers shall be billed accordingly by the Distribution Licensees.
1.27 The Commission through 1
st
Amendment to MYT Regulations, 2021 has specified
mechanism for recovery of Fuel and Power Purchase Adjustment Surcharge (FPPAS) on
monthly basis so that uncontrollable costs on account of variations in the fuel and power
purchase charges are adjusted/recovered timely in accordance with the provisions of the
Electricity Act, 2003.
1.28 The Commission has made suitable provisions to fulfil the Renewable Purchase Obligations
(RPO) in the ARR of the DISCOMs as per relevant Regulations. The Petitioners are directed
to fulfil their RPOs accordingly.
1.29 The Commission in this order has determined the Green Energy Charges for consumers
availing Green Energy from Distribution Licensee only for the purpose of reducing their
carbon footprint and seeking Certification to this effect. Besides, Tariff has been determined
for Green Energy for consumers availing Green Energy from Distribution Licensee as per
MPERC (Co-generation and generation of electricity from Renewable sources of energy)
Regulations, 2021 and amendments thereof.
1.30 In compliance to directives given in the Judgment by Hon’ble APTEL, the Commission has
determined the ratio of Average Billing Rate to the Voltage-wise Cost of Supply (VCoS) for
various consumer categories based on the proposals submitted by the DISCOMs. It may be
mentioned here that the data/ information for working out the VCoS needs to be further
validated to get a fair and correct picture. In absence of requisite data the VCoS vis-a-vis cross
subsidy percentage worked out in this Tariff Order is only indicative in nature.
Implementation of the Order
1.31 The Distribution Licensees must take immediate steps to implement this order after giving
seven (7) days Public Notice in prominent newspapers having State wide circulation, in
accordance with Regulation 1.30 of MPERC (Details to be furnished and fee payable by
licensee or generating company for determination of tariff and manner of making application)
Regulations, 2004, as amended from time to time. The tariff determined by this order shall
take effect only after seven (7) days from the date of such publication and bills shall be issued
accordingly. The tariff determined by this order shall be applicable until amended or modified
by an order of this Commission.
1.32 The detailed order provides for the grounds and reasons of determining the ARR, discusses
the functional and financial performance of three DISCOMs and includes a section dealing
with the status report on compliance of the Commission’s Directives as well as responses of
the Distribution Licensees thereto along with the Commission’s observations on the
suggestions/objections/comments received from various stakeholders on ARR and Tariff
proposal. The Commission directs the Petitioners that this order be implemented along with
directions given and conditions mentioned in the detailed order and in the tariff schedules
annexed with (Annexure-2 and Annexure-3) this order. It is further ordered that the DISCOMs
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 18
are permitted to issue bills to the consumers in accordance with the provisions of this Tariff
Order and applicable Regulations.
Sd/-
Sd/-
(Gopal Srivastava)
(S.P.S. Parihar)
Member (Law)
Chairman
Date: 28
th
March, 2023
Place: Bhopal
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 19
A2: AGGREGATE REVENUE REQUIREMENT FOR PETITIONERS
Sales Forecast
Sales forecast as submitted by the Petitioners
2.1 For projection of sales for FY 2023-24, the Petitioners have considered the past growth trends
for each consumer category as historical trend method has proved to be reasonably accurate
and well accepted method for estimating the load, number of consumers and energy
consumption. Further, submitted that as per Regulation 25.1 of MYT Regulations, 2021
category wise and slab wise sales are to be determined based on the actual/audited data of the
preceding three years. However, the preceding three years include COVID-19 year as well.
Hence, in order to normalize the abnormal effect of COVID-19 on sales projections, the
Petitioners have taken preceding five years data, i.e., form FY 2017-18 to FY 2021-22 and
the sales data of FY 2022-23 up to the month of August 2022.
2.2 Accordingly, category and slab wise actual data of the sale of electricity, number of
consumers, connected / contracted load, etc. as per the annual R-15 statement corresponding
to said period are taken and Compounded Annual Growth Rates (CAGR) of sales have been
computed from the past sales for each category and sub-category. The approach being
followed by the Petitioners is as follows:-
(a) Analyse 5-year, 4-year, 3-year and 2-year CAGRs and Year-on-Year growth rate in
Number of Consumers, Sales and Demand of each category and its sub-categories in
respect of Urban & Rural consumers separately
(b) After analysis of the data, appropriate / reasonable growth rates have been assumed for
future consumer forecasts from the past CAGRs of the Category/Sub-category by the
three DISCOMs.
(c) During the analysis, if an abnormal growth rate (high or low), relative to the current
trend is observed, then the same is normalized for the purpose of projection for ensuing
year.
(d) In cases where the past data shows a declining trend, a nil growth has been considered.
(e) The growth rate assumed is then applied on sales per consumer / sales per kW and
connected load while forecasting the connected load, number of consumers and sales
in each category/sub-category.
2.3 Further, the Petitioners submitted that they have considered the specific consumption, i.e.,
consumption per consumer and / or consumption per unit load which is the basic forecasting
variable and is widely used in load and energy sales forecasting. The basic intent in using this
model is that the specific consumption per consumer and / or consumption per unit load
captures the trends and variations in the usage of electricity over a growth cycle more
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 20
precisely. Further, this method has also been recommended by the CEA.
2.4 Details of the category-wise sales as projected by the Petitioners, is given in the table as
follows:
Table 9: Category wise sales projected by Petitioners for FY 2023-24 (MU)
Particulars
East
DISCOM
West
DISCOM
Central
DISCOM
State
LV-1: Domestic
6,043
6,328
6,599
18,970
LV-2: Non-Domestic
1,281
1,332
1,285
3,897
LV-3: Public Water Works & Street Light
409
536
457
1,402
LV-4 LT Industries
568
792
339
1,699
LV 5: Agriculture and Allied Activities
7,339
11,600
9,755
28,694
LV 6: E-Vehicle/ E-Rickshaws Charging Stations
0.13
0.16
0.18
0.47
LT Total
15,640
20,587
18,435
54,662
HV-1: Railway Traction
55.32
-
55.32
110.64
HV-2: Coal Mines
483
-
23
506
HV-3.1: Industrial
2,788
5,422
3,966
12,176
HV-3.2: Non-Industries
308
548
444
1,300
HV-4: Seasonal & Non-Seasonal
9
10
2
21
HV-5: Irrigation, Public Water Works and Other
than Agricultural
250
1,244
330
1,149
HV-6: Bulk Residential Users
237
32
155
1823
HV-7: Synchronization and Start-Up Power
1
24
3
28
HV 8: E-Vehicle/ E-Rickshaws Charging Stations
2
17
3
23
HT Total
4,133
7,297
4,982
16,412
Total Sales for State
19,773
27,884
23,417
71,074
Note :- As per Additional Submission made by the Petitioners Sales to Metro Rail is projected as 16
MU which has been considered by the Commission.
Commission’s Analysis on Sales forecast
2.5 The Commission has observed that the Petitioners have relied on the actual data pertaining to
FY 2017-18 to FY 2022-23 (up to August) for projection of number of consumers, connected
load and sales for FY 2023-24. In order to project number of consumers, connected load and
sales for FY 2023-24, the Commission has found it appropriate to consider last five years data
from FY 2016-17 to FY 2021-22 and FY 2022-23 (up to December).
2.6 Based on the actual data, the Commission has also computed projected connected load per
consumer and sales per unit load (kW) and / or demand (kVA) and sales per consumer.
2.7 Approach adopted by the Commission, for projection of number of consumers, connected
load and sales is as follows:
• Number of Consumers, Connected load / Contract Demand for FY 2023-24 have been
projected based on the analysis of corresponding data of last 5 years and considering
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 21
the appropriate CAGR.
• In order to have more realistic projections, the Commission has re-assessed the Sales
for FY 2022-23 considering 9 months actual data i.e April to December, 2022 and
estimated the sales for January to March, 2023 by considering the proportion of actual
energy sales in last 3 months (Jan – Mar 2022) with respect to actual energy sales
during first nine months of FY 2021-22 (April 2021 to December 2021). Using this
average proportion of sales, the Commission has extrapolated the actual energy sales
till the month of December 2022 for the full year to assess the revised estimated energy
sales for FY 2022-23. Thereafter, the Commission analysed category wise, sub-
category wise 5-Year CAGR, 4 Years CAGR, 3 Years CAGR, 2 Years CAGR and
Year-on-Year growth rate, compared the same with the growth rates considered by
the Petitioners for projections and considered appropriate growth rates for projection
of sales for FY 2023-24.
• For Categories LV-6 and HV-8 (Electric Vehicle and Charging Stations), wherein any
peculiar trend in growth rates has not been observed, the number of consumers,
connected load and sales have been projected as per Petitioners’ submission.
• For HV-1 (Railway Traction) and HV-9 (Metro Rail), Number of consumers,
connected load and sales have been considered as proposed by the Petitioners.
2.8 Based on above approach, the sales admitted for FY 2023-24 by the Commission is as follows:
Table 10: Category wise sales admitted by the Commission for State for FY 2023-24 (MUs)
Consumer Categories
East
DISCOM
West
DISCOM
Central
DISCOM
State
LV-1: Domestic
6,185.65
6,579.53
6,605.67
19,370.86
LV-2: Non-Domestic
1,177.36
1,446.49
1,351.83
3,975.68
LV-3: Public Water Works & Street Light
407.09
571.27
489.12
1,467.48
LV-4 LT Industries
483.94
772.88
364.88
1,621.70
LV 5: Agriculture and Allied Activities
7,285.47
11,566.55
10,125.32
28,977.33
LV 6: E-Vehicle/ E-Rickshaws Charging Stations
0.13
0.16
0.18
0.47
LT Total
15,539.63
20,936.88
18,937.00
55,413.51
HV-1: Railway Traction
55.32
0.00
55.32
110.64
HV-2: Coal Mines
489.51
0.00
21.52
511.03
HV-3.1: Industrial
2,869.15
3,836.44
3,303.60
10,009.19
HV-3.2: non-Industrial
318.47
485.98
416.51
1,220.96
HV-3.3: shopping malls
9.17
58.05
43.74
110.96
HV-3.4: Power Intensive Industries
98.89
1,547.50
803.32
2,449.72
HV-3: HT Industrial, Non-Industrial and
shopping malls
3,295.69
5,927.97
4,567.17
13,790.82
HV-4: Seasonal & Non-Seasonal
9.54
8.32
0.90
18.75
HV-5: Irrigation, Public Water Works and Other
than Agricultural
212.68
1,208.69
344.26
1,765.63
HV-6: Bulk Residential Users
249.72
39.83
157.58
447.13
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 22
Consumer Categories
East
DISCOM
West
DISCOM
Central
DISCOM
State
HV-7: Synchronization/ Start-Up Power
3.70
31.19
5.44
40.33
HV 8: E-Vehicle/ E-Rickshaws Charging Stations
2.10
17.27
3.35
22.71
HV-9: Metro Rail
0.00
8.09
7.81
15.90
HT Total
4,318.25
7,241.35
5,163.35
16,722.95
Total Sales for State (LT + HT)
19,857.89
28,178.23
24,100.35
72,136.47
Energy Balance
Petitioners’ Submission
2.9 The Petitioners submitted that for projecting the energy requirement for FY 2023-24, annual
sales have been converted into monthly sales using the sales profile actually observed in the
past five years including FY 2021-22 for each DISCOM.
2.10 Further, the Petitioners submitted that the Commission in the MYT Regulations, 2021 has
specified normative distribution loss levels for the MYT period from FY 2022-23 to FY 2026-
27. Whereas the actual losses for East, West and Central DSICOM for FY 2021-22 stands at
27.40%, 11.61% and 24.67%, respectively. However, for the instant Petition, the Petitioners
have considered normative Distribution Losses only as per MYT Regulations, 2021 for the
computation of Energy Requirement. The annual distribution loss trajectory is converted into
monthly loss trajectory based on the standard deviations of monthly losses from the
cumulative annual losses during the past 5 years. In this method, the actual monthly loss levels
and the cumulative annual losses of the DISCOMs for the past years are taken and standard
deviation of loss levels of each month from the cumulative annual average has been
calculated. The monthly standard deviations are then used to calculate the monthly loss levels
using the annual Distribution loss level trajectory specified by the Commission in MYT
Regulations, 2021.
2.11 The Intra-State Transmission Losses of 2.63% for FY 2021-22 as reported by MPPTCL to
MPPMCL have been considered for FY 2023-24. Further, Inter -State Transmission Losses
have been computed as per Regulation 10 of CERC (Sharing of Inter State Transmission
Charges and Losses) Regulations, 2020 in which it is specified that Inter-State transmission
(ISTS) losses shall be calculated on all India average basis for each week. The ISTS losses
for FY 2021-22 were 3.42%, on the same basis the Petitioners have considered 3.47% ISTS
losses for power stations under the Western, Northern & Eastern Region. which is based on
last 52 weeks moving average losses (17
th
October 2021 – 23
rd
October 2022) for FY 2023-
24.
2.12 Based on the above, the Petitioners have projected energy requirement for FY 2023-24 by
grossing up the projected sales by normative distribution losses and projected transmission
losses, as shown in the table below:
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 23
Table 11: Energy Requirement proposed by Petitioners for FY 2023-24 (MU)
Particulars
Unit
East
DISCOM
West
DISCOM
Central
DISCOM
State
LT
MU
15,640
20,587
18,434
54,662
HT
MU
4,133
7,297
4,982
16,412
Sales
MU
19,773
27,884
23,417
71,074
Distribution loss
%
15.50%
14.50%
16.50%
15.95%
Distribution loss
MU
3,615
5,215
4,655
13,485
Energy Requirement at DISCOM
Boundary
MU
23,388
33,099
28,071
84,559
Intra-State Transmission Losses
%
2.63%
2.63%
2.63%
2.63%
Intra-State Transmission Losses
MU
632
894
758
2,284
Energy Requirement at State Boundary
MU
24,020
33,993
28,829
86,843
Inter-State Transmission Losses
MU
419
592
503
1,513
Ex-Bus Energy Requirement
MU
24,439
34,585
29,332
88,356
Commission’s Analysis
2.13 For arriving at the total quantum of energy requirement, the Commission has considered
annual sales grossed up by specified loss levels as per the calculations shown in subsequent
paragraphs/ tables. Further, to compute the monthly energy requirement for FY 2023-24,
monthly sales profile which is based on the actual sales profile of last five years, as submitted
by the Petitioners, has been considered.
2.14 The distribution loss level trajectory as specified for FY 2023-24 in the MYT Regulations,
2021 is given in the table below:
Table 12: Loss targets as per Regulations (in %)
DISCOMs
FY 2023-24
East
15.50%
West
14.50%
Central
16.50%
2.15 The Commission has considered the distribution losses as specified in the MYT Regulations,
2021 for projecting the energy requirement for FY 2023-24. The Commission has not
considered any deviation in the monthly losses as proposed by the Petitioner and has
considered the normative losses as specified in the MYT Regulations, 2021 for every month.
2.16 Further, the Commission has considered the Inter-State transmission losses as per monthly
actual PGCIL losses on all India Average basis considering the weekly losses for the period
of 6
th
February, 2022 to 30
th
January 2023 (52-weeks data).
2.17 Intra-State transmission losses have been considered as per actual losses for FY 2021-22 i.e.,
2.63% as submitted by MPPTCL in their annual report of regulatory compliance for FY 2021-
22.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 24
2.18 The energy balance / Energy requirement computed based on admitted sales and normative
losses for FY 2023-24, is shown in the following tables:
Table 13: Energy requirement admitted by the Commission for FY 2023-24
Particular
East
DISCOM
West
DISCOM
Central
DISCOM
State
Total Sales (MU)
19,857.89
28,178.23
24,100.35
72,136.47
Distribution loss (%)
15.50%
14.50%
16.50%
15.45%
Distribution loss (MU)
3,642.57
4,778.76
4,762.34
13,183.68
Input at T-D interface (MU)
23,500.46
32,956.99
28,862.69
85,320.15
Intra State Transmission loss (%)
2.63%
2.63%
2.63%
2.63%
Intra State Transmission loss (MU)
634.76
890.18
779.59
2,304.53
Input at G-T interface (MU)
24,135.22
33,847.18
29,642.29
87,624.68
Inter State Transmission Losses (MU)
639.74
907.79
776.41
2,323.94
Power Purchase Requirement for
FY 2023-24 (MU)
24,774.95
34,754.96
30,418.70
89,948.62
Assessment of Energy Availability
Petitioners’ Submission
2.19 The Petitioners have assessed availability of energy for the State, on the following basis:
(a) Existing long-term allocated generation capacity of MP
(b) New generation capacity additions during FY 2023-24 for MPPGCL, Central Sector,
Joint venture and by Private players awarded through competitive bidding.
(c) Allocation of generation capacity to MP from various Central Generating Stations.
2.20 Further, the petitioners in their additional submission to fill data gaps stated that Petitioners
have considered following approach for forecast of Energy Availability: -
(a) New generation capacity additions during FY 2023-24 have been considered as per
Power Purchase Agreement.
(b) Allocation of Power to the State of MP, from Central Generating Stations is as per
Regional Power Committees and communication held with their concerned offices.
(c) The details of chosen Plant Availability Factor (PAF) and Capacity Utilisation Factor
(CUF) for various plants are as indicated below:
(i) PAF of MP GENCO Thermal plants have been considered on the basis of past
pattern.
(ii) PAF of Central Generating Stations have been considered as 85% for coal based
Thermal Power Plants and 60% for Gas based Thermal Power Plants.
(iii) PAF of IPPs has also been considered as 85%, except for BLA power, for which
it has been considered at 75%.
(iv) CUF of Solar plants has been considered as 20% and that of Non Solar
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 25
renewable energy plants has been considered as 19%.
(v) CUF of new renewable sources is considered as mentioned in PPAs.
(vi) PAF of all new thermal power plants has been considered as 85%.
(vii) Predicting hydel availability is quite difficult, which totally depends on the
rainfall. Accordingly, a suitable multiplying factor to Design Energy is assumed
on the basis of actual availability during past three to five years data.
(viii) RPO has been considered as per MPERC's Regulations.
(ix) COD of new thermal units has been considered as intimated by concerned
developers.
2.21 Allocation of power to MP from Central Generating Stations is as per Western Regional
Power Committee letter No. WRPC/Comml-I/6/Alloc/2022/10680 dated 13
th
October,2022
and from Eastern Region NTPC Kahalgaon-2 as per GoI MoP letter no. 5/31/2006 dated 21
st
February, 2007 and from Northern Region as per Northern Regional Power Committee letter
no. NRPC/OPR/103/02/2022 dated 14
th
October 2022 and communication held with their
concerned offices. Allocation from MP Genco and other sources have been considered based
on inputs provided and latest updates from their concerned offices.
2.22 MPPMCL has already decided to foreclose the PPAs with DVC for 400 MW (MTPS & CTPS)
and 100 MW (DTPS) w.e.f. 01
st
March, 2018 & 15
th
May, 2017, respectively. Hence, no
power is being scheduled from these stations after the said date. However, since September,
2020, power on STOA basis is being scheduled from 100 MW DVC (DTPS) through LOI
dated 10
th
July, 2020. Similarly, LOI for 200 MW from DVC (CTPS) on STOA basis has also
been issued on 10
th
July, 2020. Thus, costs of these plants have also been considered while
calculating the power purchase cost for FY 2023-24.
2.23 During FY 2021-22, power from Essar, BLA and Sugen Torrent Generating Stations has been
scheduled following MoD whereas in the Tariff Order for FY 2022-23, the Commission had
not considered availability and the cost thereon from these plants. The power purchase
expenditure incurred on these plants will be submitted before the Commission in the true up
of FY 2022-23. For FY 2022-23 to FY 2026-27, the availability from these plants has been
considered as the PPAs with these plants remain in force.
2.24 New Central and State Generating Stations scheduled to commence generation during FY
2023-24 are as follows:
Table 14: Upcoming Stations and Technical Parameters
Sr. No.
Particulars
Capacity
(MW)
MP’s Share
Energy
Availability
(MU)
CoD
(%)
(MW)
1
NHPC Lower Subanshiri HEP
8x250
5%
104
73
September-2023
(Unit-1 & 2)
December-2023
(Unit-3 & 4)
2.25 Following table shows allocated capacity from existing stations as well as the new capacity
additions, which are expected to become operational during the FY 2023-24:
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 26
Table 15: Allocated stations submitted by the Petitioners for FY 2023-24
Sr.
No.
Source
Plant Capacity
(MW)
MP's Share
in %
MP's Share
in MW
1
Amarkantak TPS Ph-III
210
100%
210
2
Satpura TPS Ph-II & III
830
100%
830
3
Satpura TPS Ph-IV
500
100%
500
4
SGTPS Ph-I & II
840
100%
840
5
SGTPS Ph-III
500
100%
500
6
Shri Singaji STPS Phase-I
1,200
100%
1,200
7
Shri Singaji STPS Phase-II
1,320
100%
1,320
A
Total (MP Genco Thermal-MP Share)
5,400
5,400
8
Rani Awanti Bai Sagar, Bargi HPS
90
100%
90
9
Bansagar Ph I HPS (Tons)
315
100%
315
10
Bansagar Ph-II HPS (Silpara)
30
100%
30
11
Bansagar Ph-III HPS (Deolond)
60
100%
60
12
Bansagar Ph-IV HPS (Jhinna)
20
100%
20
13
Birsinghpur HPS
20
100%
20
14
Madikheda HPS
60
100%
60
15
Rajghat HPS
45
60%
27
16
Gandhisagar HPS
115
50%
58
17
Ranapratap Sagar HPS
172
50%
86
18
Jawahar Sagar HPS
99
50%
50
19
Pench HPS
160
67%
107
B
Total (MP Genco Hydel)
1,186
922
20
NHDC Indira Sagar HPS
1,000
100%
1,000
21
NHDC Omkareshwar HPS
520
100%
520
22
NVDA Sardar Sarovar HPS
1,450
57%
827
23
Rihand HPS
300
15%
45
24
Matatila HPS
31
33%
10
25
SJVN Rampur HPS
412
31%
128
26
SJVN Jhakri HPS
1,500
0%
2
27
Tehri HPS
1,000
0%
2
28
Koteshwar HPP
400
0%
1
29
NHPC Parbati III
520
0%
1
30
NHPC Chamera II
300
0%
1
31
NHPC Chamera III
231
0%
1
32
NHPC Dulhasti
390
0%
1
33
NHPC Dhauliganga
280
0%
1
34
NHPC Sewa II
120
0%
0
35
NHPC Uri II
240
0%
1
36
NHPC Kishanganga
330
0%
1
37
NTPC Koldam HPP I
800
0%
1
38
NTPC Singrauli Small HPP
8
0%
0
39
NHPC Lower Subansiri HEP (Unit-1 to Unit-8)
2,000
5%
100
C
Total (JV Hydel & Other Hydel)
11,832
2,642
40
NTPC Korba
2,100
23%
473
41
NTPC Korba III
500
10%
48
42
NTPC Vindyachal I
1,260
22%
275
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 27
Sr.
No.
Source
Plant Capacity
(MW)
MP's Share
in %
MP's Share
in MW
43
NTPC Vindyachal II
1,000
21%
207
44
NTPC Vindyachal III
1,000
15%
155
45
NTPC Vindyachal IV
1,000
18%
183
46
NTPC Vindyachal V Unit 1
500
18%
89
47
NTPC Sipat I
1,980
11%
209
48
NTPC Sipat II
1,000
11%
115
49
NTPC Mouda I
1,000
1%
12
50
NTPC Mouda II Unit 1
1,320
1%
16
51
NTPC Solapur STPS
1,320
16%
208
52
NTPC Gadarwara STPS, Unit-1
800
31%
247
53
NTPC Lara STPS, Raigarh, Unit I
800
11%
89
54
NTPC Khargone STPS, Unit-I & II
1,320
52%
685
55
NTPC Kawas GPP
656
21%
140
56
NTPC Gandhar GPP
657
18%
117
57
KAPP Kakrapar
440
25%
111
58
TAPP Tarapur
1,080
21%
231
59
NTPC Gadarwara STPS, Unit-2
800
31%
247
60
NTPC Lara STPS, Raigarh, Unit II
800
11%
89
D
Total WR Region (Central Generating Stations)
21,334
3,946
61
NTPC Kahalgaon II
1,500
5%
74
62
LoI through DVC Chandrapur
500
40%
200
63
LoI through DVC Durgapur
1,000
10%
100
E
Total ER Region (Central Generating Stations)
3,000
374
63
Auraiya APM (NR)
663
0.25%
2
64
National Capital Thermal Power Station Dadri-II (NR)
980
0.25%
2
65
Dadri APM (NR)
830
0.25%
2
66
Indira Gandhi STPS (Jhajjar) (NR)
1,500
0.13%
2
67
Anta APM (NR)
419
0.25%
1
68
Unchahar I (NR)
420
0.08%
0
69
Unchahar III (NR)
210
0.25%
1
70
Unchahar II (NR)
420
0.25%
1
71
Singrauli (NR)
2,000
0.20%
4
72
Rihand III (NR)
1,000
0.24%
2
73
Rihand I (NR)
1,000
0.21%
2
74
Rihand II (NR)
1,000
0.23%
2
75
Dulhasti (NR)
390
0.25%
1
76
Parbati III (NR)
520
0.25%
1
77
Tehri I (NR)
1,000
0.17%
2
78
Koldam (NR)
800
0.12%
1
79
URI II (NR)
240
0.00%
0
80
Sewa II (NR)
120
0.24%
0
81
Chamera III (NR)
231
0.30%
1
82
Kishanganga (NR)
330
0.25%
1
83
Koteshwar (NR)
400
0.17%
1
84
Rampur HEP (NR)
412
0.15%
1
85
Nathpa-Jhakri (NR)
1,500
0.16%
2
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 28
Sr.
No.
Source
Plant Capacity
(MW)
MP's Share
in %
MP's Share
in MW
86
Dhauliganga (NR)
280
0.25%
1
87
Chamera II (NR)
300
0.30%
1
88
NAPS
440
0.24%
1
89
RAPS – B
440
0.00%
0
90
RAPS – C
440
0.25%
1
91
Dadri I
840
0.00%
0
92
Dadri Solar
5
0.00%
0
93
BTPS
705
0.00%
0
94
RGPPL
540
0.00%
0
95
Unchahar IV
500
0.25%
1
96
Singrauli HEP
8
0.25%
0
97
MEJA
1,320
0.13%
2
98
Tanda
660
0.17%
1
F
Total NR Region (Central Generating Stations)
22,863
40
99
Torrent Power
1,148
4%
50
100
BLA Power, Unit-I & II
90
35%
32
101
Jaypee Bina Power
500
70%
350
102
Lanco Amarkantak TPS Unit 1
300
100%
300
103
Reliance UMPP, Sasan
3,960
38%
1,485
104
Essar Power STPS
1,200
5%
60
105
Jaiprakash Power STPS, Nigri
1,320
38%
495
106
MB Power STPS, Unit-I
600
35%
210
107
MB Power STPS, Unit-II
600
35%
210
108
Jhabua Power STPS, Unit-1
600
35%
210
G
Total (IPPs)
10,318
3,402
109
Renewable Energy (Solar)
3,578
100%
3,578
110
Renewable Energy (other than Solar)
2,548
100%
2,548
H
Total Renewable Energy
6,126
6,126
I
Grand Total
82,058
22,851
2.26 The petitioners submitted that after fully meeting the requirement of the State and selling
power on the power exchange, the Petitioners still have to partially back-down plants so as to
save on the variable costs being incurred. The Petitioners have applied month-wise merit order
dispatch principle on the basis of variable costs for FY 2023-24 and thereafter, after
considering all generating stations allocated to MPPMCL. The Petitioners have considered
the actual data for FY 2021-22 & FY 2022-23 (till September 2022) for calculating normative
availability including backing down of power for FY 2023-24.
2.27 The Petitioners have also considered partial backing down of units/stations which are higher
up in the MoD, during those periods when their scheduling is not required to meet the demand
in periods when there is less demand in open market also. This addresses demand fluctuations
and ensures that power procured from cheaper sources is fully utilized and avoids
procurement of power from costlier sources. The resultant benefit of reduced power
procurement cost or sale at a higher rate, whichever the case maybe, is in turn being passed
on to the consumers.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 29
2.28 The following table shows the stations which are considered by the Petitioners for partial/full
back down:
Table 16: Power Plant Wise backing down considered by the Petitioners for FY 2023-24 (MU)
Sr.
No.
Sources
Energy
Availability
Energy
Scheduled
Backdown
1
Amarkantak TPS Ph-III
1,511
1,511
0
2
Satpura TPS Ph-II & III
0
0
0
3
Satpura TPS Ph-IV
3,597
3,597
0
4
SGTPS Ph-I & II
4,566
4,566
0
5
SGTPS Ph-III
3,519
3,519
0
6
Shri Singaji STPS Phase-I
8,444
8,444
0
7
Shri Singaji STPS Phase-II
9,289
9,289
0
A
Total (MP Genco Thermal-MP Share)
30,926
30,926
0
8
Rani Awanti Bai Sagar, Bargi HPS
395
395
0
9
Bansagar Ph I HPS (Tons)
1,167
1,167
0
10
Bansagar Ph-II HPS (Silpara)
93
93
0
11
Bansagar Ph-III HPS (Deolond)
100
100
0
12
Bansagar Ph-IV HPS (Jhinna)
92
92
0
13
Birsinghpur HPS
44
44
0
14
Madikheda HPS
110
110
0
15
Rajghat HPS
43
43
0
16
Gandhisagar HPS
104
104
0
17
Ranapratap Sagar HPS
134
134
0
18
Jawahar Sagar HPS
124
124
0
19
Pench HPS
199
199
0
B
Total (MP Genco Hydel)
2,606
2,606
0
20
NHDC Indira Sagar HPS
1,966
1,966
0
21
NHDC Omkareshwar HPS
1,158
1,158
0
22
NVDA Sardar Sarovar HPS
1,607
1,607
0
23
Rihand HPS
94
94
0
24
Matatila HPS
29
29
0
25
SJVN Rampur HPS
2
2
0
26
SJVN Jhakri HPS
9
9
0
27
Tehri HPS
6
6
0
28
Koteshwar HPP
2
2
0
29
NHPC Parbati III
5
5
0
30
NHPC Chamera II
3
3
0
31
NHPC Chamera III
2
2
0
32
NHPC Dulhasti
4
4
0
33
NHPC Dhauliganga
3
3
0
34
NHPC Sewa II
1
1
0
35
NHPC Uri II
0
0
0
36
NHPC Kishanganga
3
3
0
37
NTPC Koldam HPP I
3
3
0
38
NTPC Singrauli Small HPP
0
0
0
39
NHPC Lower Subansiri HEP Unit-1
148
148
0
C
Total (JV Hydel & Other Hydel)
5,045
5,045
0
40
NTPC Korba
3,295
3,295
0
41
NTPC Korba III
506
506
0
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 30
Sr.
No.
Sources
Energy
Availability
Energy
Scheduled
Backdown
42
NTPC Vindyachal I
2,955
2,955
0
43
NTPC Vindyachal II
2,196
2,196
0
44
NTPC Vindyachal III
1,682
1,682
0
45
NTPC Vindyachal IV
1,937
1,937
0
46
NTPC Vindyachal V Unit 1
966
966
0
47
NTPC Sipat I
2,253
2,253
0
48
NTPC Sipat II
1,276
1,276
0
49
NTPC Mouda I
135
0
135
50
NTPC Mouda II Unit 1
172
0
172
51
NTPC Solapur STPS
2,257
0
2,257
52
NTPC Gadarwara STPS, Unit-1
5,841
0
5,841
53
NTPC Lara STPS, Raigarh, Unit I
1,248
1,248
0
54
NTPC Khargone STPS, Unit-I & II
4,819
455
4,364
55
NTPC Kawas GPP
0
0
0
56
NTPC Gandhar GPP
0
0
0
57
KAPP Kakrapar
730
730
0
58
TAPP Tarapur
1,518
1,518
0
59
NTPC Gadarwara STPS, Unit-2
0
0
0
60
NTPC Lara STPS, Raigarh, Unit II
0
0
0
61
NTPC Lara STPS, Raigarh, Unit III
0
0
0
62
NTPC Lara STPS, Raigarh, Unit IV
0
0
0
63
NTPC Lara STPS, Raigarh, Unit V
0
0
0
D
Total WR Region (Central Generating Stations)
33,784
21,016
12,768
64
NTPC Kahalgaon I
0
0
0
65
NTPC Kahalgaon II
521
521
0
66
NTPC Farakka
0
0
0
67
NTPC Talcher
0
0
0
68
NTPC Barh
0
0
0
69
DVC (MTPS & CTPS)
211
0
211
70
DVC (DTPS)
493
0
493
E
Total ER Region (Central Generating Stations)
1,224
521
704
71
NTPC Auraiya GPP
12
0
12
72
NTPC Dadri GPP
15
15
0
73
NTPC Anta GPP
7
7
0
74
NTPC Firoz Gandhi Unchahar I
2
0
2
75
NTPC Firoz Gandhi Unchahar II
7
0
7
76
NTPC Firoz Gandhi Unchahar III
4
0
4
77
NTPC Firoz Gandhi Unchahar IV
9
0
9
78
NTPC Rihand TPS-I
15
15
0
79
NTPC Rihand TPS-II
16
16
0
80
NTPC Rihand TPS-III
17
17
0
81
NTPC NCTP Dadri II
16
0
16
82
NTPC Singrauli
28
28
0
83
NTPC IGPS I Jhajjar
14
0
14
84
MEJA Urja Nigam
6
6
0
85
NTPC Tanda
8
0
8
86
NTPC Badarpur
0
0
0
87
Rajasthan (NPCIL)
8
8
0
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 31
Sr.
No.
Sources
Energy
Availability
Energy
Scheduled
Backdown
88
NARORA (NPCIL)
7
7
0
F
Total NR Region (Central Generating Stations)
191
120
72
89
Torrent Power
214
0
214
90
BLA Power, Unit-I & II
189
189
0
91
Jaypee Bina Power
2,378
2,378
0
92
Lanco Amarkantak TPS Unit 1
2,038
2,038
0
93
Reliance UMPP, Sasan
10,450
10,450
0
94
Essar Power STPS
422
0
422
95
Jaiprakash Power STPS, Nigri
3,483
3,483
0
96
MB Power STPS, Unit-I
1,478
1,478
0
97
MB Power STPS, Unit-II
1,478
1,478
0
98
Jhabua Power STPS, Unit-1
1,478
1,478
0
99
DB Power STPS Unit-1
0
0
0
100
Pench Thermal Energy, Unit-1
0
0
0
G
Total (IPPs)
23,608
22,972
636
101
Renewable Energy (Solar)
10,298
10,298
0
102
Renewable Energy (other than Solar)
6,465
6,465
0
H
Total Renewable Energy
16,763
16,763
0
Total
114,148
99,968
14,180
2.29 The following table shows the overall availability of all the stations after application of merit
order dispatch and backing-down for the period FY 2023-24 as submitted by the Petitioners:
Table 17: Total Availability of Energy submitted by the Petitioners for FY 2023-24 (MU)
Particulars
FY 2023-24
Ex-Bus Availability
1,14,147
Ex-Bus Energy Required by DISCOMs
88,356
Backdown of Power and Surplus Sale of Power
25,792
Backdown
14,179
Surplus Units available for Sale
11,612
Commission’s Analysis
2.30 The Commission observed that the Petitioners have not considered the allocation from
Western and Northern Region as per the latest allocation specified by Regional Power
Committee. Accordingly, the Commission directed the Petitioners to submit the latest
allocation from Western and Northern Regions, which was subsequently submitted by the
Petitioners.
2.31 The Commission has considered the CGS allocation from Western Region stations for FY
2023-24 as provided by Western Regional Power Committee vide their letter No.
WRPC/Comml-I/6/Alloc/2022/13036 dated 30
th
November, 2022 and from Eastern Region
NTPC Kahalgaon-2 communicated vide GoI MoP letter no. 5/31/2006- dated 21
st
February,
2007 and from Northern Region as per Northern Regional Power Committee letter no.
NRPC/OPR/103/02/2022/12546/73 dated 23
rd
December, 2022. Further, the Commission has
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 32
considered the allocation of remaining generating stations as per notification no. 2211/F-3-
13/2016/XIII dated 21
st
March, 2016, by Energy Deptt. Govt. of Madhya Pradesh.
2.32 The Commission has considered allocation of existing stations to MPPMCL and new capacity
additions proposed during the FY 2023-24 as shown in the following table:
Table 18: Allocation of Generating Station considered by the Commission for FY 2023-24
Sr. No.
Generating Stations
Region
Installed
Capacity (MW)
Allocation
(%)
Total
(in MW)
I
Central Generating Stations
38,796
5,478
1
NTPC Korba
WR
2,100
22.52%
473
2
NTPC Korba III
WR
500
14.31%
72
3
NTPC Vindyachal I
WR
1,260
34.48%
435
4
NTPC Vindyachal II
WR
1,000
31.17%
312
5
NTPC Vindyachal III
WR
1,000
23.87%
239
6
NTPC Vindyachal IV
WR
1,000
27.46%
275
7
NTPC Vindyachal V Unit 1
WR
500
27.39%
137
8
NTPC Sipat I
WR
1,980
16.11%
319
9
NTPC Sipat II
WR
1,000
18.11%
181
10
NTPC Mouda I
WR
1,000
1.35%
14
11
NTPC Mouda II Unit 1
WR
1,320
1.80%
24
12
NTPC Kawas GPP
WR
656
21.35%
140
13
NTPC Gandhar GPP
WR
657
17.82%
117
14
NTPC Auraiya GPP
NR
663
0.36%
2
15
NTPC Dadri GPP
NR
830
0.38%
3
16
NTPC Anta GPP
NR
419
0.37%
2
17
NTPC Kahalgaon 2
ER
1,500
4.93%
74
18
KAPP Kakrapar
WR
440
24.99%
110
19
TAPP Tarapur
WR
1,080
21.02%
227
20
RAPP Rawabhatta
NR
440
0.37%
2
21
NAPP Narora
NR
440
0.35%
2
22
NTPC Solapur STPS, Phase-1
WR
1,320
24.23%
320
23
NTPC Gadarwara STPS, Unit-1
WR
800
51.82%
415
24
NTPC Gadarwara STPS, Unit-2
WR
800
51.82%
415
25
NTPC Lara STPS, Raigarh, Unit I
WR
800
11.01%
88
26
NTPC Lara STPS, Raigarh, Unit II
WR
800
11.01%
88
27
NTPC Firoz Gandhi Unchahar I
NR
420
0.03%
0.13
28
NTPC Firoz Gandhi Unchahar II
NR
420
0.09%
0.38
29
NTPC Firoz Gandhi Unchahar III
NR
210
0.09%
0.19
30
NTPC Firoz Gandhi Unchahar IV
NR
500
0.10%
1
31
NTPC Rihand I
NR
1,000
0.08%
1
32
NTPC Rihand II
NR
1,000
0.09%
1
33
NTPC Rihand III
NR
1,000
0.10%
1
34
NTPC NCTP Dadri II
NR
980
0.09%
1
35
NTPC Singrauli
NR
2,000
0.08%
2
36
NTPC IGPS I Jhajjar
NR
1,500
0.18%
3
37
NTPC Khargone STPS, Unit-I
WR
660
51.81%
342
38
NTPC Khargone STPS, Unit-II
WR
660
51.81%
342
39
Meja Urja Nigam
NR
1,320
0.18%
2
40
NTPC Tanda Stage-II
NR
1,320
0.06%
1
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 33
Sr. No.
Generating Stations
Region
Installed
Capacity (MW)
Allocation
(%)
Total
(in MW)
41
DVC (MTPS & CTPS)
ER
500
40.00%
200
42
DVC (DTPS)
ER
1,000
10.00%
100
II
MP Genco Power Station
(Thermal & Hydro)
5,756
5,487
43
Amarkantak TPS Ph-III
State
210
100.00%
210
44
Satpura TPS Ph-IV
State
500
100.00%
500
45
SGTPS Ph-I & II
State
840
100.00%
840
46
SGTPS Ph-III
State
500
100.00%
500
47
Shri Singaji STPS, Ph-I
State
1,200
100.00%
1,200
48
Shri Singaji STPS, Ph-2
State
1,320
100.00%
1,320
49
Rani Awanti Bai Sagar, Bargi HPS
State
90
100.00%
90
50
Bansagar Ph I HPS (Tons)
State
315
100.00%
315
51
Bansagar Ph-II HPS (Silpara)
State
30
100.00%
30
52
Bansagar Ph-III HPS (Deolond)
State
60
100.00%
60
53
Bansagar Ph-IV HPS (Jhinna)
State
20
100.00%
20
54
Birsinghpur HPS
State
20
100.00%
20
55
Marhikheda HPS
State
60
100.00%
60
56
Rajghat HPS
State
45
50.00%
23
57
Gandhisagar HPS
State
115
50.00%
58
58
Ranapratap Sagar & Jawahar Sagar HPS
State
271
50.00%
136
59
Pench HPS
State
160
66.69%
107
III
JV Hydel & Other Hydels
9,842
2,432
60
NHDC Indira Sagar HPS
WR
1,000
100.00%
1,000
61
NHDC Omkareshwar HPS
WR
520
100.00%
520
62
Sardar Sarovar HPS
WR
1,450
57.00%
827
63
Rihand HPS
NR
300
15.00%
45
64
Matatila HPS
NR
31
32.68%
10
65
SJVN Rampur HPS
NR
412
0.22%
1
66
SJVN Jhakri HPS
NR
1,500
0.24%
4
67
Tehri HPS
NR
1,000
0.24%
2
68
Koteshwar HPP
NR
400
0.24%
1
69
NHPC Parbati III
NR
520
0.37%
2
70
NHPC Chamera II
NR
300
0.44%
1
71
NHPC Chamera III
NR
231
0.37%
1
72
NHPC Dulhasti
NR
390
0.37%
1
73
NHPC Dhauliganga
NR
280
0.37%
1
74
NHPC Sewa II
NR
120
0.37%
0.44
75
NHPC Kishanganga
NR
330
0.37%
1
76
NTPC Koldam HPP I
NR
800
0.17%
1
77
NTPC Singrauli Small HPP
NR
8
0.37%
0.03
IV
IPPs
7,970
3,292
78
BLA Power
State
90
35.00%
32
79
Jaypee Bina Power
State
500
70.00%
350
80
Lanco Amarkantak TPS Unit 1
WR
300
100.00%
300
81
Reliance UMPP, Sasan
WR
3,960
37.50%
1,485
82
Jaiprakash Power STPS, Nigri
WR
1,320
37.50%
495
83
MB Power STPS
WR
1,200
35.00%
420
84
Jhabua Power STPS, Unit-1
WR
600
35.00%
210
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 34
Sr. No.
Generating Stations
Region
Installed
Capacity (MW)
Allocation
(%)
Total
(in MW)
V
Renewables
6,126
6,126
85
Other RPO (excluding Hydro)
4,783
100.00%
4,783
86
Wind RPO
1,343
100.00%
1,343
87
HPO (NHPC Lower Subansiri HEP )
NER
250
5.25%
13
Total
68,489
22,815
2.33 The Commission in order to project energy availability for FY 2023-24 has analysed the
following:
(i) Actual average scheduled energy in previous three years, i.e., FY 2020-21 to FY 2022-
23 (Upto December, 2022) as per State Energy Accounts;
(ii) Actual availability of Central Generating Stations as per Regional Energy Account for
FY 2018-19 to FY 2021-22;
(iii) Actual availability of IPPs, MPPGCL, NHDC and NVDA as per State / Regional
Energy Account for FY 2021-22;
(iv) Projections made by NHDC, NVDA and MPPGCL for FY 2023-24;
(v) Actual availability of RE Power from existing PPA for compliance of RPO.
Energy Availability from Central Generating Stations & Nuclear Power Plants
2.34 With regard to the energy availability from Central Generating Stations (Thermal Power
Plants), the Commission observed that the actual availability for FY 2021-22 is in line with
the average of the scheduled energy in previous three years. Accordingly, the Commission
has projected the availability for these stations considering the actual plant availability in FY
2021-22.
2.35 Further, the Commission has projected energy availability from the Central Hydro Generating
Stations considering the actual plant availability in previous years given in the Hydro
Performance Review FY 2018-19 published by CEA.
2.36 For Nuclear Power Corporation of India Ltd. (NPCIL) generating stations, the Commission
has considered energy availability as per average of the actual energy scheduled in last three
years as per State Energy Accounts.
Energy Availability from MPPGCL, NVDA & NHDC Generating Stations
2.37 The Commission has considered the energy availability from MPPGCL thermal generating
stations & Hydro generating stations as per the projection submitted by the MPPGCL.
2.38 Similarly, the energy availability projections as provided by the NHDC for Indira Sagar
Power Station (ISPS), Omkareshwar (OSP) and as provided by NVDA for Sardar Sarovar
Project (SSP) has been considered by the Commission for FY 2023-24.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 35
Energy Availability from Renewable Energy Generating Stations
2.39 The energy availability from Renewable Energy sources has been considered in accordance
with existing power purchase agreement as per Petitioners submission. Further, shortfall if
any in fulfilment of Renewable Purchase Obligation (RPO) specified by the Commission in
MPERC (Cogeneration and Generation from Renewable Energy Sources), Regulations, 2021
and amendments thereof has been considered to be met through additional procurement
during the FY 2023-24. The details of availability from existing power purchase agreements
and additional procurement for fulfilment of RPO projected for FY 2023-24 has been detailed
in the subsequent Section of this Order.
Energy Availability from New Generating Stations
2.40 With regard to NHPC Lower Subhansiri HEP, NHPC has communicated to the Petitioners
that the station is expected to be Commissioned during September, 2023. Therefore, the
availability from this generating station has been considered as per Petitioners submission for
FY 2023-24.
2.41 Availability from Essar power as concessional energy submitted in the Petition is not in
accordance with the Commission’s Order dated 4
th
May, 2016 in SMP No 51/2015. Therefore,
the availability from Essar power as proposed by the petitioners for FY 2023-24 has not been
considered in this Order. Also, the Commission has not considered the availability and the
cost thereon, for the Sugen Torrent Generating Station in view of the approach previously
followed by the Commission in its Retail Supply Tariff Orders from 2016-17 onwards.
Moreover, the Petitioners could not respond satisfactorily to the Commission’s queries
through separate communications with regard to PPA. However, the Petitioner is at liberty to
approach the Commission through a separate Petition in this regard.
2.42 Based on the above, month-wise and generating station-wise details of projected availability
for FY 2023-24 is shown in the following table:
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 36
Table 19 : Month wise energy availability projection for FY 2023-24 (MU)
Particulars
Apr-23
May-23
Jun-23
Jul-23
Aug-23
Sep-23
Oct-23
Nov-23
Dec-23
Jan-24
Feb-24
Mar-24
Total
NTPC Korba
321.68
329.60
315.34
322.88
282.73
307.39
316.58
316.27
303.89
322.11
282.54
292.18
3,713.19
NTPC Korba III
51.00
46.71
33.70
40.99
52.22
50.49
52.41
51.08
52.58
52.68
47.81
52.57
584.23
NTPC Vindyachal I
267.84
263.98
246.18
287.97
236.69
260.21
265.01
264.46
287.93
268.01
253.58
280.34
3,182.21
NTPC Vindyachal II
207.93
206.94
187.18
167.33
167.46
173.14
184.46
202.68
162.72
193.58
196.20
211.30
2,260.92
NTPC Vindyachal III
143.74
164.32
117.06
149.01
134.04
137.14
166.87
158.39
163.35
151.20
144.13
148.27
1,777.54
NTPC Vindyachal IV
193.78
185.94
169.10
190.22
182.30
191.35
196.26
192.60
165.68
131.69
139.61
158.61
2,097.13
NTPC Vindyachal V Unit 1
67.51
94.34
84.09
96.24
88.25
91.24
97.87
94.76
95.96
88.24
78.09
50.49
1,027.07
NTPC Sipat I
146.01
179.09
185.33
206.41
203.04
163.28
142.80
177.09
192.94
189.53
167.32
186.01
2,138.86
NTPC Sipat II
133.03
140.09
130.29
127.55
129.55
121.82
114.53
118.99
111.77
126.66
95.48
129.74
1,479.51
NTPC Mouda I
8.10
4.51
4.73
18.77
8.19
12.12
15.00
18.11
29.41
38.53
29.61
26.17
213.27
NTPC Mouda II Unit 1
8.13
5.33
4.96
17.48
12.09
9.83
11.89
25.34
31.40
34.95
33.02
31.67
226.09
NTPC Kawas GPP
9.90
10.75
4.56
3.25
6.30
10.29
5.36
5.07
0.00
0.58
0.71
1.41
58.18
NTPC Gandhar GPP
5.45
9.58
2.17
10.51
6.84
7.84
0.02
0.00
0.00
0.05
7.68
0.00
50.16
NTPC Auraiya GPP
10.98
1.99
2.18
0.12
0.01
0.17
0.00
0.00
0.00
0.13
1.71
1.05
18.33
NTPC Dadri GPP
1.30
1.23
0.99
4.32
0.72
1.76
1.40
0.57
3.29
0.97
2.08
5.93
24.57
NTPC Anta GPP
0.00
0.19
0.00
8.63
2.05
0.63
0.00
0.00
0.00
0.00
0.00
0.00
11.51
NTPC Kahalgaon 2
54.06
49.27
39.98
55.45
35.11
35.61
31.56
51.10
42.07
44.28
53.34
53.99
545.80
KAPP Kakrapar
59.43
65.62
66.92
69.93
69.74
64.32
68.81
63.18
67.51
76.47
69.65
75.84
817.42
TAPP Tarapur
146.87
148.93
152.04
149.65
154.83
127.60
130.16
135.64
146.51
82.59
84.94
132.05
1,591.79
RAPP Rawabhatta
0.94
1.03
1.03
1.13
0.98
1.03
0.82
0.63
0.67
0.64
0.47
0.61
9.99
NAPP Narora
0.60
0.52
0.53
0.62
0.54
0.59
0.65
0.68
0.73
0.50
0.57
0.70
7.23
NTPC Solapur STPS, Phase-1
82.80
13.03
23.38
256.26
197.66
205.26
132.11
304.54
380.32
177.28
297.80
344.63
2,415.06
NTPC Gadarwara STPS, Unit-1
279.85
169.07
109.47
252.52
266.57
261.12
207.24
281.29
252.16
199.01
278.88
388.14
2,945.32
NTPC Gadarwara STPS, Unit-2
281.35
169.97
110.06
253.87
268.00
262.52
208.35
282.80
253.51
198.76
265.93
390.21
2,945.32
NTPC Lara STPS, Raigarh, Unit I
55.37
52.60
52.52
54.95
52.17
42.71
34.48
68.59
61.01
55.95
64.24
73.32
667.90
NTPC Lara STPS, Raigarh, Unit II
59.10
41.66
42.36
57.52
66.78
51.51
50.02
86.98
82.58
26.26
37.47
61.62
663.86
NTPC Firoz Gandhi Unchahar I
0.05
0.03
0.00
0.15
0.06
0.08
0.03
0.00
0.05
0.03
0.26
0.15
0.90
NTPC Firoz Gandhi Unchahar II
0.16
0.18
0.03
0.76
0.27
0.26
0.11
0.16
0.23
0.12
0.43
0.21
2.93
NTPC Firoz Gandhi Unchahar III
0.20
0.09
0.02
0.26
0.08
0.09
0.04
0.20
0.06
0.04
0.22
0.20
1.51
NTPC Firoz Gandhi Unchahar IV
0.56
0.34
0.07
0.58
0.16
0.19
0.13
0.29
0.12
0.06
0.56
0.68
3.73
NTPC Rihand I
0.43
0.46
0.33
1.22
0.54
0.96
0.69
0.39
0.30
0.23
0.40
0.39
6.34
NTPC Rihand II
0.34
0.45
0.33
1.20
0.60
0.66
0.70
0.41
0.34
0.24
0.39
0.35
6.00
NTPC Rihand III
0.52
0.54
0.54
1.52
0.94
0.88
0.72
0.67
0.47
0.31
0.29
0.60
7.99
NTPC NCTP Dadri II
1.03
0.46
0.07
2.03
0.79
0.32
0.22
0.27
0.15
0.19
0.78
0.48
6.79
NTPC Singrauli
0.78
0.92
0.47
1.12
0.59
1.62
1.22
1.21
0.98
0.55
1.05
0.55
11.06
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 37
Particulars
Apr-23
May-23
Jun-23
Jul-23
Aug-23
Sep-23
Oct-23
Nov-23
Dec-23
Jan-24
Feb-24
Mar-24
Total
NTPC IGPS I Jhajjar
3.29
1.89
0.44
5.27
2.07
2.65
0.74
1.16
0.59
0.44
0.67
2.02
21.22
NTPC Khargone STPS, Unit-I
186.12
117.33
70.10
147.41
174.68
171.96
137.58
292.33
287.84
313.26
273.58
276.70
2,448.91
NTPC Khargone STPS, Unit-II
186.12
117.33
70.10
147.41
174.68
171.96
137.58
292.33
287.84
313.26
273.58
276.70
2,448.91
Meja Urja Nigam
1.40
1.17
1.05
1.17
1.67
1.69
1.44
1.77
1.78
1.08
0.71
1.79
16.72
NTPC Tanda Stage-II
0.25
0.60
0.06
0.22
0.24
0.14
0.10
2.02
0.28
0.05
1.15
1.07
6.17
DVC (MTPS & CTPS)
29.16
22.53
17.51
31.31
24.34
29.37
22.43
11.20
7.73
6.97
8.56
0.00
211.11
DVC (DTPS)
68.05
52.57
40.86
73.05
56.79
68.53
52.33
26.13
18.04
16.26
19.97
0.00
492.60
Amarkantak TPS Ph-III
127.70
131.95
127.70
126.48
126.48
122.40
132.08
127.82
132.08
132.08
123.56
132.08
1,542.42
Satpura TPS Ph-IV
298.11
308.04
298.11
229.11
204.03
294.53
314.02
303.89
314.02
314.02
293.76
314.02
3,485.67
SGTPS Ph-I & II
369.22
326.16
352.71
350.15
315.66
304.32
444.66
449.07
464.03
464.03
434.10
464.03
4,738.16
SGTPS Ph-III
325.73
336.59
325.73
332.06
166.03
0.00
344.23
333.12
344.23
344.23
322.02
344.23
3,518.18
Shri Singaji STPS, Ph-I
655.53
677.38
325.73
547.95
658.44
637.20
690.84
668.56
690.84
690.84
646.27
690.84
7,580.41
Shri Singaji STPS, Ph-2
514.14
472.25
685.52
691.67
691.67
669.35
733.02
709.37
733.02
733.02
685.73
733.02
8,051.76
Rani Awanti Bai Sagar, Bargi HPS
32.80
29.80
24.80
29.80
41.80
44.80
49.80
24.80
34.80
34.80
34.80
34.80
417.60
Bansagar Ph I HPS (Tons)
49.45
54.45
64.45
99.45
99.45
109.45
99.45
99.45
79.45
79.45
79.45
79.45
993.40
Bansagar Ph-II HPS (Silpara)
4.85
4.85
6.85
6.85
7.85
9.85
9.85
9.85
6.85
6.85
6.85
6.85
88.20
Bansagar Ph-III HPS (Deolond)
0.00
0.00
0.00
11.90
19.90
25.90
29.90
9.90
0.00
0.00
0.00
0.00
97.50
Bansagar Ph-IV HPS (Jhinna)
7.90
5.90
4.90
3.90
2.90
7.90
8.90
8.90
8.90
8.90
8.90
8.90
86.80
Birsinghpur HPS
0.00
0.00
1.90
9.90
10.90
9.90
9.90
4.90
4.90
4.90
0.00
0.00
57.20
Marhikheda HPS
0.00
0.00
1.75
10.75
21.75
14.75
19.75
14.75
10.75
9.75
4.75
4.75
113.50
Rajghat HPS
0.00
0.00
0.00
5.82
7.01
7.01
10.00
7.01
5.82
2.83
2.83
2.83
51.17
Gandhisagar HPS
2.35
4.85
4.85
9.85
9.85
14.85
14.85
14.85
14.85
17.35
12.35
12.35
133.20
Ranapratap Sagar & Jawahar Sagar
HPS
3.48
0.45
0.88
2.64
13.62
7.75
24.80
47.14
48.04
40.21
33.86
17.80
240.68
Pench HPS
5.15
6.49
13.15
13.15
19.82
43.15
39.82
19.82
18.49
11.82
11.82
11.82
214.51
NHDC Indira Sagar HPS
109.89
123.75
113.85
142.56
308.88
391.05
225.72
131.67
157.41
164.34
129.69
129.69
2,128.50
NHDC Omkareshwar HPS
55.44
66.33
69.30
79.20
134.64
189.09
118.80
75.24
90.09
91.08
69.30
65.34
1,103.85
Sardar Sarovar HPS
121.83
105.82
144.89
135.43
212.73
339.20
194.89
89.29
120.19
127.33
108.91
98.28
1,798.78
Rihand HPS
5.25
5.56
13.00
6.70
14.12
22.31
12.77
5.60
6.59
6.73
6.41
5.88
110.92
Matatila HPS
1.98
2.22
3.75
3.24
4.23
3.85
4.41
1.53
3.62
4.69
3.85
2.87
40.24
SJVN Rampur HPS
0.02
0.23
0.05
0.06
0.37
0.58
0.60
0.35
0.54
0.26
0.55
0.39
4.01
SJVN Jhakri HPS
0.72
1.48
2.26
2.53
2.44
2.14
1.14
0.68
0.56
0.47
0.39
0.52
15.32
Tehri HPS
0.30
0.58
0.91
1.10
1.06
0.93
0.49
0.29
0.23
0.15
0.12
0.19
6.35
Koteshwar HPP
0.22
0.15
0.13
0.18
0.30
0.32
0.24
0.16
0.24
0.21
0.21
0.19
2.54
NHPC Parbati III
0.32
0.37
0.49
0.41
0.56
0.55
0.33
0.27
0.43
0.39
0.42
0.42
4.96
NHPC Chamera II
0.26
0.44
0.75
1.43
1.42
0.79
0.36
0.20
0.15
0.12
0.10
0.15
6.18
NHPC Chamera III
0.31
0.44
0.49
0.54
0.54
0.44
0.26
0.15
0.12
0.12
0.10
0.19
3.70
NHPC Dulhasti
0.48
0.81
0.95
1.03
0.99
0.77
0.38
0.21
0.16
0.15
0.12
0.25
6.29
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 38
Particulars
Apr-23
May-23
Jun-23
Jul-23
Aug-23
Sep-23
Oct-23
Nov-23
Dec-23
Jan-24
Feb-24
Mar-24
Total
NHPC Dhauliganga
0.27
0.49
0.48
0.46
0.45
0.47
0.39
0.19
0.15
0.13
0.10
0.16
3.75
NHPC Sewa II
0.10
0.17
0.25
0.32
0.32
0.28
0.18
0.09
0.06
0.05
0.03
0.05
1.90
NHPC Uri II
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
NHPC Kishanganga
0.55
0.61
0.54
0.92
0.85
0.71
0.09
0.00
0.00
0.00
0.00
0.07
4.33
NTPC Koldam HPP I
0.50
0.70
0.66
0.77
0.68
0.47
0.19
0.19
0.15
0.14
0.15
0.46
5.07
NTPC Singrauli Small HPP
0.01
0.01
0.03
0.04
0.04
0.02
0.01
0.01
0.01
0.01
0.00
0.01
0.19
BLA Power
11.00
3.59
6.46
6.83
12.87
9.77
4.86
12.25
16.32
3.59
6.03
12.87
106.46
Jaypee Bina Power
240.32
152.77
170.44
168.37
168.06
179.17
146.00
284.12
271.47
141.50
135.01
365.04
2,422.25
Lanco Amarkantak TPS Unit 1
179.24
124.57
181.39
164.40
116.04
104.63
175.66
178.38
202.39
214.56
169.20
227.88
2,038.33
Reliance UMPP, Sasan
970.23
1,022.46
970.71
957.36
884.69
871.52
958.90
931.42
924.24
965.60
912.14
1,028.53
11,397.79
Jaiprakash Power STPS, Nigri
253.75
300.87
308.79
316.03
298.61
302.82
311.28
306.24
316.88
287.56
244.97
235.55
3,483.36
MB Power STPS
228.67
202.74
198.32
287.15
247.57
249.68
229.69
276.41
291.70
254.61
263.24
225.78
2,955.57
Jhabua Power STPS, Unit-1
96.00
108.21
98.88
148.12
124.33
109.47
100.26
154.12
133.23
98.60
140.62
165.94
1,477.79
Other RPO
1,597.58
1,709.72
1,197.69
1,122.83
1,092.89
1,077.92
1,047.98
1,047.98
1,047.98
1,154.44
1,393.98
1,618.54
15,109.53
Wind RPO
133.97
173.29
159.36
161.29
162.06
119.89
115.09
115.09
115.09
120.05
132.44
145.43
1,653.05
HPO
35.03
31.83
26.49
31.83
44.64
47.85
65.35
38.64
49.32
73.73
73.73
75.23
593.66
Total
9,515.82
9,172.56
8,198.43
9,440.82
9,316.89
9,392.09
9,482.91
10,035.39
10,155.17
9,719.44
9,708.36
10,922.43
1,15,060.31
Assessment of Power Purchase Cost
Petitioners’ Submission
2.43 Details of the fixed cost and energy charges of MPPMCL allocated stations as submitted by the Petitioners are mentioned in the table below:
Table 20 : Fixed cost and Energy charges of MPPMCL allocated stations as submitted by the Petitioners for FY 2023-24
Sr
No
Source
Fixed Charge
(Rs. Crore)
Basis for Fixed Charges
Energy Charge
(Rs. /kWh)
Basis for Energy Charges
1
Amarkantak TPS Ph-III
164
MPERC MYT Order dated 19.05.2021 in
respect of MP Genco Plants for FY 2019-20
to FY 2023-24 in P.no. 53 of 2020
3.25
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
2
Satpura TPS Ph-II & III
0
0.00
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
3
Satpura TPS Ph-IV
604
2.45
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
4
SGTPS Ph-I & II
457
2.48
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
5
SGTPS Ph-III
309
2.10
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 39
Sr
No
Source
Fixed Charge
(Rs. Crore)
Basis for Fixed Charges
Energy Charge
(Rs. /kWh)
Basis for Energy Charges
6
Shri Singaji STPS Phase-I
1,247
3.41
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
7
Shri Singaji STPS Phase-II
1,314
3.06
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
8
Rani Awanti Bai Sagar, Bargi
HPS
8
As Approved by the Hon'ble Commission in
MYT order
1.00
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
9
Bansagar Ph I HPS (Tons)
45
MPERC MYT Order dated 19.05.2021 in
respect of MP Genco Plants for FY 2019-20
to FY 2023-24 in P.no. 53 of 2020
MPERC MYT Order dated 19.05.2021 in
respect of MP Genco Plants for FY 2019-20
to FY 2023-24 in P.no. 53 of 2020
0.39
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
10
Bansagar Ph-II HPS (Silpara)
26
0.73
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
11
Bansagar Ph-III HPS (Deolond)
22
1.11
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
12
Bansagar Ph-IV HPS (Jhinna)
3
0.76
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
13
Birsinghpur HPS
3
0.82
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
14
Madikheda HPS
3
1.48
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
15
Rajghat HPS
3
2.52
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
16
Gandhisagar HPS
2
1.00
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
17
Ranapratap Sagar HPS
0
1.54
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
18
Jawahar Sagar HPS
0
1.54
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
19
Pench HPS
9
0.51
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
20
NHDC Indira Sagar HPS
279
As Approved by the Hon'ble Commission in
MYT order
2.00
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
21
NHDC Omkareshwar HPS
189
As Approved by the Hon'ble Commission in
MYT order
2.12
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
22
NVDA Sardar Sarovar HPS
101
As Approved by the Hon'ble Commission in
MYT order
0.82
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
23
Rihand HPS
0
As Approved by the Hon'ble Commission in
MYT order
0.41
As Approved by the Hon'ble Commission in MYT order
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 40
Sr
No
Source
Fixed Charge
(Rs. Crore)
Basis for Fixed Charges
Energy Charge
(Rs. /kWh)
Basis for Energy Charges
24
Matatila HPS
0
As Approved by the Hon'ble Commission in
MYT order
0.41
As Approved by the Hon'ble Commission in MYT order
25
SJVN Rampur HPS
1
CERC Order dtd. 24-01-2022 in P.no.
28/GT/2020 for 01.04.2019 to 31.03.2024
1.85
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
26
SJVN Jhakri HPS
1
CERC Order dtd. 16-09-2021 in P.no.
30/GT/2020 for 01.04.2019 to 31.03.2024
1.18
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
27
Tehri HPS
1
CERC Order dtd. 13-05-2022 in P.no.
97/GT/2020 for 01.04.2019 to 31.03.2024
1.99
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
28
Koteshwar HPP
1
CERC Order dtd. 03.10.2022 in P.no.
244/GT/2020 for 01.04.2019 to 31.03.2024
0.39
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
29
NHPC Parbati III
1
CERC Order dtd. 23-04-2019 in P.no.
6/GT/2017 for 01.04.2014 to 31.03.2019
1.26
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
30
NHPC Chamera II
0
CERC Order dtd. 17-06-2016 in P.no.
233/GT/2014
1.25
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
31
NHPC Chamera III
1
CERC Order dtd. 29.01.2020 in P.no.
321/GT/2018 for 01.04.2014 to 31.03.2019
2.12
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
32
NHPC Dulhasti
1
CERC Order dtd. 09.05.2022 in P.no.
146/GT/2020 for 01.04.2019 to 31.03.2024
2.60
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
33
NHPC Dhauliganga
0
CERC Order dtd. 18-08-2022 in P.no.
284/GT/2020 for 01.04.2019 to 31.03.2024
1.24
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
34
NHPC Sewa II
0
CERC Order dtd. 05-02-2020 in P.no.
322/GT/2018 for FY 2014-15 to FY 2018-19.
3.34
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
35
NHPC Uri II
0
CERC Order dtd. 05-02-2020 in P.no.
308/GT/2018 for FY 2014-15 to FY 2018-19.
0.00
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
36
NHPC Kishanganga
1
CERC Order dtd. 28-10-2019 in P.no.
43/GT/2018
2.18
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
37
NTPC Koldam HPP I
1
CERC Order dtd. 05-04-2018 in P.no.
107/GT/2015 up to FY 2018-19
2.61
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
38
NHPC Lower Subansiri HEP
Unit-1
0
5.09
As per levelised tariff.
39
NTPC Korba
248
CERC Ord dtd. 21.04.2022 in P.no.
486/GT/2020 for 01-04-2019 to 31-03-2024
1.73
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
40
NTPC Korba III
57
CERC Ord dtd. 23.03.2022 in P.no.
419/GT/2020 for 01-04-2019 to 31-03-2024
1.61
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
41
NTPC Vindyachal I
270
CERC Order 31.01.2022 in P.no.
401/GT/2022 for 01-04-2019 to 31-03-2024
1.99
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 41
Sr
No
Source
Fixed Charge
(Rs. Crore)
Basis for Fixed Charges
Energy Charge
(Rs. /kWh)
Basis for Energy Charges
42
NTPC Vindyachal II
170
CERC Order 10-06-2022 in P.no.
485/GT/2014 for 01-04-2019 to 31-03-2024
1.93
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
43
NTPC Vindyachal III
176
CERC Order 24-02-2017 in P.no.
342/GT/2014 for 01-04-2014 to 31-03-2019
1.72
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
44
NTPC Vindyachal IV
304
CERC Order 10-03-2017 in P.no.
339/GT/2014 for 01-04-2014 to 31-03-2019
1.71
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
45
NTPC Vindyachal V Unit 1
160
CERC Order 31-08-2016 in P.no.
234/GT/2015 for 30-10-2015 to 31-03-2019
1.77
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
46
NTPC Sipat I
282
CERC Order 06-06-2022 in P.no.
425/GT/2020 for 01-04-2014 to 31-03-2019
2.24
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
47
NTPC Sipat II
125
CERC Order 06-06-2022 in P.no.
435/GT/2020 for 01-04-2014 to 31-03-2019
1.57
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
48
NTPC Mouda I
25
CERC TuP Ord dtd.19-09-2022 in
P.no.393/GT/2020 for 01-04-2014 to 31-03-
2019
5.67
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
49
NTPC Mouda II Unit 1
25
CERC Order 05-04-2019 in P.no.
142/GT/2016 for period CoD to 31-03-2019
4.43
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
50
NTPC Solapur STPS
311
CERC Order dtd. 06-01-2020 in P.no.
178/GT/2017 for 25-09-2017 to 31-03-2019
4.12
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
51
NTPC Gadarwara STPS, Unit-1
1,140
Prorated Fixed Charges based on actual bills
for the Period Sept'21 to Aug'22
3.84
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
52
NTPC Lara STPS, Raigarh, Unit
I
138
Prorated Fixed Charges based on actual bills
for the Period Sept'21 to Aug'22
2.28
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
53
NTPC Khargone STPS, Unit-I &
II
852
Prorated Fixed Charges based on actual bills
for the Period Sept'21 to Aug'22
3.76
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
54
NTPC Kawas GPP
96
CERC Order 04-06-2022 in P.no.
488/GT/2020 for 01-04-2019 to 31-03-2024
3.25
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
55
NTPC Gandhar GPP
89
CERC Order 04.06.2022 in P.no.
420/GT/2020 for 01-04-2019 to 31-03-2024
2.80
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
56
KAPP Kakrapar
0
2.34
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
57
TAPP Tarapur
0
Tariff @ Rs 2.9058 as DAE Notification dtd
22.03.2018 for 01.04.2017 to 31.03.2022
3.45
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
58
NTPC Gadarwara STPS, Unit-2
0
3.73
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
59
NTPC Lara STPS, Raigarh, Unit
II
138
Prorated Fixed Charges based on actual bills
for the Period Sept'21 to Aug'22
2.28
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 42
Sr
No
Source
Fixed Charge
(Rs. Crore)
Basis for Fixed Charges
Energy Charge
(Rs. /kWh)
Basis for Energy Charges
60
NTPC Kahalgaon I
0
0.00
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
61
NTPC Kahalgaon II
57
CERC TuP Ord 21-04-2022 in P.no.
362/GT/2020 for 01-04-2014 to 31-03-2019
3.28
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
62
DVC (MTPS & CTPS)
37
CERC Order dtd. 17-0-2017 in P.no.
180/GT/2015 for 01.04.2014 to 31.03.2019
3.81
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
63
DVC (DTPS)
120
CERC Order dtd. 17-03-2017 in P.no.
205/GT/2015 for 01.04.2014 to 31.03.2019
3.81
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
64
NTPC Auraiya GPP
1
CERC Order dtd. 18-04-2017 in P.no.
285/GT/2014 for 01-04-2014 to 31-03-2019
8.76
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
65
NTPC Dadri GPP
1
CERC Order dtd. 13-11-2021 in P.no.
400/GT/2020 for 01-04-2019 to 31-03-2024
2.65
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
66
NTPC Anta GPP
1
CERC Order dtd. 19-09-2017 in P.no.
287/GT/2014 for 01-04-2014 to 31-03-2019
3.09
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
67
NTPC Firoz Gandhi Unchahar I
0
CERC Order dtd. 07.10.2022 in P.no.
431/GT/2020 for 01.04.2019 to 31.03.2024
4.47
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
68
NTPC Firoz Gandhi Unchahar II
1
CERC Order dtd. 12-12-2021 in P.no.
438/GT/2020 for 01.04.2019 to 31.03.2024
4.39
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
69
NTPC Firoz Gandhi Unchahar III
0
CERC Order dtd. 07.10.2022 in P.no.
427/GT/2020 for 01.04.2019 to 31.03.2024
4.49
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
70
NTPC Firoz Gandhi Unchahar IV
1
CERC TuP Ord dtd. 16.03.2022 in P.no.
364/GT/2020 for FY 2017-18 & FY 2018-19
4.64
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
71
NTPC Rihand TPS-I
1
CERC Order dtd. 23-08-2016 in P.no.
291/GT/2014
1.88
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
72
NTPC Rihand TPS-II
1
CERC Order dtd. 08-04-2022 in P.no.
426/GT/2020 for 01-04-2019 to 31-03-2024
1.83
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
73
NTPC Rihand TPS-III
3
CERC Order dtd. 06-02-2017 in P.no.
372/GT/2014 for 01-04-2014 to 31-03-2019
1.92
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
74
NTPC NCTP Dadri II
2
CERC Ord 02-06-2022 in P.no. 2/GT/2021
for 01-04-2019 to 31-03-2024
4.67
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
75
NTPC Singrauli
2
CERC Order dtd. 28-07-2016 in P.no.
290/GT/2014 for 01-04-2014 to 31-03-2019
1.89
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
76
NTPC IGPS I Jhajjar
2
CERC Order dtd. 22.09.2022 in P.no.
489/GT/2020 for 01-04-2019 to 31-03-2024
4.57
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
77
MEJA Urja Nigam
2
CERC Ord dtd. 02-05-2019 in P.no.
341/GT/2018 for 31.10.2018 to 31.03.2019
2.65
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 43
Sr
No
Source
Fixed Charge
(Rs. Crore)
Basis for Fixed Charges
Energy Charge
(Rs. /kWh)
Basis for Energy Charges
78
NTPC Tanda
3
Fixed Charge as per past 12 months Bills (
Sep-21 to Aug-22)
4.01
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
79
Rajasthan (NPCIL)
0
Tariff @ Rs 2.9914 as DAE Notification dtd
22.03.2018 for 01.04.2017 to 31.03.2022
4.05
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
80
NARORA (NPCIL)
0
Tariff @ Rs 3.3439 as DAE Notification dtd
22.03.2018 for 01.04.2017 to 31.03.2022
3.08
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
81
Torrent Power
34
CERC Ord dtd 10-03-2022 in P.no.
236/GT/2020 for 01.04.2019 to 31.03.2024
4.69
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
82
BLA Power, Unit-I & II
19
MPERC Ord dtd 25-10-2021 in P.no.
17/2018 for FY 2016-17 to FY 2018-19
3.15
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
83
Jaypee Bina Power
453
MPERC Ord dtd 30-04-2021 in P.no.
44/2020
3.39
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
84
Lanco Amarkantak TPS Unit 1
264
MPERC Ord dtd 24-08-2021 in P.no.
60/2020 for FY 2014-15 to FY 2018-19
2.58
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
85
Reliance UMPP, Sasan
193
Prorated Fixed Charges based on actual bills
for the Period Sept'21 to Aug'22
1.34
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
86
Essar Power STPS
0
5.77
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
87
Jaiprakash Power STPS, Nigri
618
MPERC Ord dtd 03-05-2021 in P.no.
43/2020 for FY 2019 to FY 2024
0.92
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
88
MB Power STPS, Unit-I
264
MPERC Ord dtd 01-05-2021 in P.no.
46/2020 for FY 2019 to FY 2024
2.97
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
89
MB Power STPS, Unit-II
264
MPERC Ord dtd 01-05-2021 in P.no.
46/2020 for FY 2019 to FY 2024
2.97
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
90
Jhabua Power STPS, Unit-1
272
MPERC Ord dtd 08-05-2021 in P.no.
47/2020 for FY 2019 to FY 2024
2.86
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
91
Renewable Energy (Solar)
0
3.17
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
92
Renewable Energy (other than
Solar)
0
4.52
Energy Charge as per Weighted Avg of past 12 months
Bills ( Sep-21 to Aug-22)
2.44 Further, the Petitioners submitted that all plants allocated to MPPMCL have been considered and Merit Order Dispatch (MOD) has been applied
for FY 2023-24 to all the plants. The energy availability after considering the backing down, as submitted by the Petitioners is given in the
following table:
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 44
Table 21 : MOD for FY 2023-24 as submitted by the Petitioners
Sr. No
Generating Stations
Energy Charge
(Paisa/kWh)
Availability
(MUs)
1
KAPP Kakrapar
2.34
730
2
TAPP Tarapur
3.45
1,518
3
Rajasthan (NPCIL)
4.05
8
4
NARORA (NPCIL)
3.08
7
5
NTPC Singrauli Small HPP
0.00
0
6
NHPC Lower Subansiri HEP Unit-1
5.09
148
7
Renewable Energy (Solar)
3.17
10,298
8
Renewable Energy (other than Solar)
4.52
6,465
9
Bansagar Ph I HPS (Tons)
0.39
1,167
10
Koteshwar HPP
0.39
2
11
Rihand HPS
0.41
94
12
Matatila HPS
0.41
29
13
Pench HPS
0.51
199
14
Bansagar Ph-II HPS (Silpara)
0.73
93
15
Bansagar Ph-IV HPS (Jhinna)
0.76
92
16
NVDA Sardar Sarovar HPS
0.82
1,607
17
Birsinghpur HPS
0.82
44
18
Jaiprakash Power STPS, Nigri
0.92
3,483
19
Rani Awanti Bai Sagar, Bargi HPS
1.00
395
20
Gandhisagar HPS
1.00
104
21
Bansagar Ph-III HPS (Deolond)
1.11
100
22
SJVN Jhakri HPS
1.18
9
23
NHPC Dhauliganga
1.24
3
24
NHPC Chamera II
1.25
3
25
NHPC Parbati III
1.26
5
26
Reliance UMPP, Sasan
1.34
10,450
27
Madikheda HPS
1.48
110
28
Ranapratap Sagar HPS
1.54
134
29
Jawahar Sagar HPS
1.54
124
30
NTPC Sipat II
1.57
1,276
31
NTPC Korba III
1.61
506
32
NTPC Vindyachal IV
1.71
1,937
33
NTPC Vindyachal III
1.72
1,682
34
NTPC Korba
1.73
3,295
35
NTPC Vindyachal V Unit 1
1.77
966
36
NTPC Rihand TPS-II
1.83
16
37
SJVN Rampur HPS
1.85
2
38
NTPC Rihand TPS-I
1.88
15
39
NTPC Singrauli
1.89
28
40
NTPC Rihand TPS-III
1.92
17
41
NTPC Vindyachal II
1.93
2,196
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 45
Sr. No
Generating Stations
Energy Charge
(Paisa/kWh)
Availability
(MUs)
42
Tehri HPS
1.99
6
43
NTPC Vindyachal I
1.99
2,955
44
NHDC Indira Sagar HPS
2.00
1,966
45
SGTPS Ph-III
2.10
3,519
46
NHPC Chamera III
2.12
2
47
NHDC Omkareshwar HPS
2.12
1,158
48
NHPC Kishanganga
2.18
3
49
NTPC Sipat I
2.24
2,253
50
NTPC Lara STPS, Raigarh, Unit I
2.28
1,248
51
NTPC Lara STPS, Raigarh, Unit II
2.28
0
52
Satpura TPS Ph-IV
2.45
3,597
53
SGTPS Ph-I & II
2.48
4,566
54
Rajghat HPS
2.52
43
55
Lanco Amarkantak TPS Unit 1
2.58
2,038
56
NHPC Dulhasti
2.60
4
57
NTPC Koldam HPP I
2.61
3
58
MEJA Urja Nigam
2.65
6
59
NTPC Dadri GPP
2.65
15
60
NTPC Gandhar GPP
2.80
0
61
Jhabua Power STPS, Unit-1
2.86
1,478
62
MB Power STPS, Unit-I
2.97
1,478
63
MB Power STPS, Unit-II
2.97
1,478
64
Shri Singaji STPS Phase-II
3.06
9,289
65
NTPC Anta GPP
3.09
7
66
BLA Power, Unit-I & II
3.15
189
67
Amarkantak TPS Ph-III
3.25
1,511
68
NTPC Kawas GPP
3.25
0
69
NTPC Kahalgaon II
3.28
521
70
NHPC Sewa II
3.34
1
71
Jaypee Bina Power
3.39
2,378
72
Shri Singaji STPS Phase-I
3.41
8,444
73
NTPC Gadarwara STPS, Unit-2
3.73
0
74
NTPC Khargone STPS, Unit-I & II
3.76
4,819
75
DVC (MTPS & CTPS)
3.81
211
76
DVC (DTPS)
3.81
493
77
NTPC Gadarwara STPS, Unit-1
3.84
5,841
78
NTPC Tanda
4.01
8
79
NTPC Solapur STPS
4.12
2,257
80
NTPC Firoz Gandhi Unchahar II
4.39
7
81
NTPC Mouda II Unit 1
4.43
172
82
NTPC Firoz Gandhi Unchahar I
4.47
2
83
NTPC Firoz Gandhi Unchahar III
4.49
4
84
NTPC IGPS I Jhajjar
4.57
14
85
NTPC Firoz Gandhi Unchahar IV
4.64
9
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 46
Sr. No
Generating Stations
Energy Charge
(Paisa/kWh)
Availability
(MUs)
86
NTPC NCTP Dadri II
4.67
16
87
Torrent Power
4.69
214
88
NTPC Mouda I
5.67
135
89
Essar Power STPS
5.77
422
90
NTPC Auraiya GPP
8.76
12
91
Total
1,14,148
2.45 The table below shows generating station-wise details of fixed costs and energy costs for FY
2023-24 as submitted by the Petitioners:
Table 22 : Fixed cost and Energy cost as Claimed by Petitioners for FY 2023-24 (Rs. Crore)
Sr. No
Particulars
Fixed Charge
Energy Charge
Total
1
Amarkantak TPS Ph-III
163.59
249.02
412.61
2
Satpura TPS Ph-II & III
0.00
0.00
0.00
3
Satpura TPS Ph-IV
603.99
881.94
1,485.93
4
SGTPS Ph-I & II
457.03
1,130.25
1,587.28
5
SGTPS Ph-III
309.32
740.37
1,049.69
6
Shri Singaji STPS Phase-I
1,246.84
925.21
2,172.05
7
Shri Singaji STPS Phase-II
1,314.19
1,857.63
3,171.82
A
Total (MP Genco Thermal-MP Share)
4,094.96
5,784.43
9,879.39
8
Rani Awanti Bai Sagar, Bargi HPS
8.12
39.53
47.65
9
Bansagar Ph I HPS (Tons)
44.91
45.31
90.22
10
Bansagar Ph-II HPS (Silpara)
25.88
6.81
32.69
11
Bansagar Ph-III HPS (Deolond)
21.58
11.01
32.59
12
Bansagar Ph-IV HPS (Jhinna)
2.67
6.96
9.63
13
Birsinghpur HPS
2.63
3.61
6.24
14
Madikheda HPS
2.56
16.38
18.94
15
Rajghat HPS
2.70
10.95
13.65
16
Gandhisagar HPS
1.69
10.47
12.16
17
Ranapratap Sagar HPS
0.00
20.67
20.67
18
Jawahar Sagar HPS
0.00
19.07
19.07
19
Pench HPS
8.82
10.17
18.99
B
Total (MP Genco Hydel)
121.56
200.94
322.50
20
NHDC Indira Sagar HPS
279.46
392.27
671.73
21
NHDC Omkareshwar HPS
189.25
245.91
435.16
22
NVDA Sardar Sarovar HPS
101.45
131.75
233.20
23
Rihand HPS
0.00
3.84
3.84
24
Matatila HPS
0.00
1.18
1.18
25
SJVN Rampur HPS
0.67
0.41
1.08
26
SJVN Jhakri HPS
1.46
1.02
2.48
27
Tehri HPS
0.63
1.22
1.85
28
Koteshwar HPP
0.90
0.10
0.99
29
NHPC Parbati III
0.81
0.59
1.40
30
NHPC Chamera II
0.43
0.41
0.84
31
NHPC Chamera III
0.57
0.44
1.01
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 47
Sr. No
Particulars
Fixed Charge
Energy Charge
Total
32
NHPC Dulhasti
1.16
0.92
2.08
33
NHPC Dhauliganga
0.37
0.31
0.69
34
NHPC Sewa II
0.28
0.15
0.43
35
NHPC Uri II
0.00
0.00
0.00
36
NHPC Kishanganga
0.64
0.65
1.29
37
NTPC Koldam HPP I
0.67
0.91
1.57
38
NTPC Singrauli Small HPP
0.00
0.00
0.00
39
NHPC Lower Subansiri HEP Unit-1
0.00
75.15
75.15
C
Total (JV Hydel & Other Hydel)
578.74
857.22
1,435.96
40
NTPC Korba
247.85
568.95
816.80
41
NTPC Korba III
56.80
81.38
138.18
42
NTPC Vindyachal I
270.28
589.24
859.52
43
NTPC Vindyachal II
170.17
423.78
593.95
44
NTPC Vindyachal III
175.98
289.59
465.56
45
NTPC Vindyachal IV
304.07
330.90
634.96
46
NTPC Vindyachal V Unit 1
160.14
171.28
331.42
47
NTPC Sipat I
282.14
504.46
786.60
48
NTPC Sipat II
125.24
200.10
325.34
49
NTPC Mouda I
24.90
0.00
24.90
50
NTPC Mouda II Unit 1
25.43
0.00
25.43
51
NTPC Solapur STPS
311.11
0.00
311.11
52
NTPC Gadarwara STPS, Unit-1
1,140.36
0.00
1,140.36
53
NTPC Lara STPS, Raigarh, Unit I
138.17
284.49
422.66
54
NTPC Khargone STPS, Unit-I & II
851.54
117.23
968.77
55
NTPC Kawas GPP
95.84
0.00
95.84
56
NTPC Gandhar GPP
88.76
0.00
88.76
57
KAPP Kakrapar
0.00
170.59
170.59
58
TAPP Tarapur
0.00
523.80
523.80
59
NTPC Gadarwara STPS, Unit-2
0.00
0.00
0.00
60
NTPC Lara STPS, Raigarh, Unit II
138.17
0.00
138.17
D
Total WR Region (Central Generating Stations)
4,606.94
4,255.78
8,862.72
61
NTPC Kahalgaon II
57.03
71.50
128.53
62
DVC (MTPS & CTPS)
36.51
0.00
36.51
63
DVC (DTPS)
119.62
0.00
119.62
E
Total ER Region (Central Generating Stations)
213.16
71.50
284.66
63
NTPC Auraiya GPP
0.80
0.00
0.80
64
NTPC Dadri GPP
0.86
3.88
4.74
65
NTPC Anta GPP
0.59
1.14
1.73
66
NTPC Firoz Gandhi Unchahar I
0.24
0.00
0.24
67
NTPC Firoz Gandhi Unchahar II
0.85
0.00
0.85
68
NTPC Firoz Gandhi Unchahar III
0.45
0.00
0.45
69
NTPC Firoz Gandhi Unchahar IV
1.38
0.00
1.38
70
NTPC Rihand TPS-I
1.28
2.79
4.07
71
NTPC Rihand TPS-II
1.31
2.97
4.29
72
NTPC Rihand TPS-III
2.75
3.25
6.01
73
NTPC NCTP Dadri II
1.94
0.00
1.94
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 48
Sr. No
Particulars
Fixed Charge
Energy Charge
Total
74
NTPC Singrauli
1.99
5.35
7.35
75
NTPC IGPS I Jhajjar
2.14
0.00
2.14
76
MEJA Urja Nigam
2.04
1.60
3.64
77
NTPC Tanda
3.25
0.00
3.25
78
NTPC Badarpur
0.00
0.00
0.00
79
Rajasthan (NPCIL)
0.00
3.14
3.14
80
NARORA (NPCIL)
0.00
2.30
2.30
F
Total NR Region (Central Generating Stations)
21.89
26.44
48.33
81
Torrent Power
33.90
0.00
33.90
82
BLA Power, Unit-I & II
19.22
31.23
50.45
83
Jaypee Bina Power
452.90
362.45
815.35
84
Lanco Amarkantak TPS Unit 1
264.22
526.45
790.67
85
Reliance UMPP, Sasan
192.50
1,403.69
1,596.20
86
Essar Power STPS
0.00
0.00
0.00
87
Jaiprakash Power STPS, Nigri
617.63
319.19
936.82
88
MB Power STPS, Unit-I
263.90
426.37
690.27
89
MB Power STPS, Unit-II
263.90
404.34
668.24
90
Jhabua Power STPS, Unit-1
271.60
412.56
684.16
G
Total (IPPs)
2,379.77
3,886.30
6,266.07
91
Renewable Energy (Solar)
0.00
3,269.55
3,269.55
92
Renewable Energy (other than Solar)
0.00
2,920.60
2,920.60
H
Total Renewable Energy
0.00
6,190.14
6,190.14
Total
12,017.02
21,272.76
33,289.78
Commission’s Analysis
2.46 The Commission observed that petitioners have considered actual energy charges as per bills
for the period from September 2021 to August 2022 and fixed charges as per MYT orders
approved by the Commission and Hon’ble CERC for claiming power purchase cost for FY
2023-24.
2.47 The Commission has considered fixed and energy charges for the generating station for FY
2023-24 based on following approach: -
Determination of Energy Cost
Central, State and IPPs Thermal Generating Stations
2.48 The Commission has considered energy charges for the Thermal generating stations as per
actuals during the period September, 2021 to August 2022 as submitted by the Petitioners for
FY 2022-23.
Central and State Hydro Generating Stations
2.49 For Hydro Generating Stations, the Commission has computed the energy charges
considering the methodology specified in the CERC / MPERC Regulations.
NPCIL Generating Stations
2.50 For Nuclear Power Generating Stations, the Commission has considered the tariff for FY
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 49
2023-24 as per latest DAE notification dated 22
nd
March 2018.
Renewable Sources
2.51 The Commission has considered rate of power purchase from Wind, HPO and Other
(excluding Hydro) energy sources, as the weighted average purchase rates as per the Power
Purchase Agreements. However, for fulfillment of HPO, additional power procurement has
been considered at the rate of Rs. 5.09/kWh i.e., Rate of latest signed PPA for NHPC Lower
Subansiri HEP.
New generating stations
2.52 The Commission has considered energy charge for Subhansiri HEP as submitted by the
Petitioner in the Petition and reply for filling data gaps i.e., Rs. 5.09/kWh.
Determination of Fixed Cost
Central, State and IPPs Generating Stations
2.53 For Central/Inter-State Generating Stations (Thermal and Hydro), the Commission has
considered latest available Tariff Orders issued by CERC for individual stations.
2.54 For MPPGCL stations (Thermal and Hydro), the Fixed Charges has been considered in
accordance with latest available MYT Orders issued by the Commission.
2.55 The Commission has considered fixed costs of IPPs for which tariff is determined by the
Commission, based on the latest available MYT Order or the PPA.
2.56 For new generating stations for which tariffs are yet to be determined/admitted by the
appropriate Commission, the Fixed Charges have been considered based on actual bills of
previous financial year.
Power Purchase from Captive Power Plants (CPP)
2.57 Regulation 3.2 of MPERC (Power purchase and other matters with respect to conventional
fuel based Captive Power Plants) Regulations (revision-1) 2009 dated 31st January, 2009,
specifies as follows:
“3.2 The maximum rate of purchase of power from a CPP Holder by the Distribution Licensee
shall be as determined by the Commission in its tariff order issued from time to time. However,
the concerned Distribution Licensee shall have the option of procuring short-term / long-term
power from any CPP Holder based on competitive bidding, using the guidelines specified by
the Ministry of Power, Government of India in this regard but not exceeding the rates as
determined by the Commission. In such an event, the Commission shall adopt the rate for
power purchase as decided through such competitive bidding. In all such cases, the
agreement shall be executed by M.P. Power Trading Co. Ltd. on behalf of the Distribution
Licensee.”
2.58 The Commission has observed that the Petitioner has not projected any availability of power
from Captive Power Plants for FY 2023-24. Accordingly, the Commission has not considered
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 50
availability from the CPPs. As per the above Regulations, the Petitioner may purchase power
from captive power plants at the tariff discovered through competitive bidding and file a
separate Petition before the Commission for its approval. On the basis of the same, the
Commission may consider the actual power purchase from CPP and its cost at the time of
truing up.
New generating stations
2.59 For NHPC Lower Subhansiri HEP, no fixed charge has been considered in accordance to the
Petitioners’ reply submitted for filling data gaps.
2.60 On the basis of the above considerations, the Fixed and Energy Charges considered for FY
2023-24 is shown in the table below:
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 51
Table 23: Basis of Fixed and Energy charges for the generating stations for FY 2023-24
Sr. No.
Generating Station
Fixed Charges
for FY 2023-24
(Rs. Crore)
Basis
Energy Charges
(Rs./kWh) for FY
2023-24
Basis
1
NTPC Korba
1,101
CERC Order Dated 21st April, 2022 in Petition No.
486/GT/2020 for 1.4.2019 to 31.3.2024.
1.73
As Per Petitioners’ submission
2
NTPC Korba III
395
CERC Order dated 23rd March, 2022 in Petition No.
419/GT/2020 for 1.4.2019 to 31.3.2024
1.61
As Per Petitioners’ submission
3
NTPC Vindyachal I
783
CERC Order 31-01-2022 in P.no. 401/GT/2022 for 01-04-
2019 to 31-03-2024
1.99
As Per Petitioners’ submission
4
NTPC Vindyachal II
545
CERC Order 10th June, 2022 in Petition No. 485/GT/2020
for 1.4.2019 to 31.3.2024
1.93
As Per Petitioners’ submission
5
NTPC Vindyachal III
736
CERC Order 24-02-2017 in P.no. 342/GT/2014 for 01-04-
2014 to 31-03-2019
1.72
As Per Petitioners’ submission
6
NTPC Vindyachal IV
1,105
CERC Order 10-03-2017 in P.no. 339/GT/2014 for 01-04-
2014 to 31-03-2019
1.71
As Per Petitioners’ submission
7
NTPC Vindyachal V Unit 1
583
CERC Order 31-08-2016 in P.no. 234/GT/2015 for 30-10-
2015 to 31-03-2019
1.77
As Per Petitioners’ submission
8
NTPC Sipat I
1,745
CERC Order 6th June, 2022 in Petition No. 425/GT/2020 for
1.4.2019 to 31.3.2024.
2.24
As Per Petitioners’ submission
9
NTPC Sipat II
691
CERC Order dated 4th June, 2022 in Petition No.
435/GT/2020 for 1.4.2019 to 31.3.2024
1.57
As Per Petitioners’ submission
10
NTPC Mouda I
1,188
CERC Order dated 14th November, 2022 in Petition No.
437/GT/2020 for 1.4.2019 to 31.3.2024
5.67
As Per Petitioners’ submission
11
NTPC Mouda II Unit 1
1,387
CERC Order 05-04-2019 in P.no. 142/GT/2016 for COD to
31-03-2019
4.43
As Per Petitioners’ submission
12
NTPC Kawas GPP
449
CERC Order Dated 4th June, 2022 in Petition No.
488/GT/2020 for 1.4.2019 to
31.3.2024.
3.25
As Per Petitioners’ submission
13
NTPC Gandhar GPP
498
CERC Order dated 4th June, 2022 in Petition No.
420/GT/2020 for 1.4.2019 to 31.3.2024.
2.80
As Per Petitioners’ submission
14
NTPC Auraiya GPP
309
CERC Order 18-04-2017 in P.no. 285/GT/2014 for 01-04-
2014 to 31-03-2019
8.76
As Per Petitioners’ submission
15
NTPC Dadri GPP
318
CERC Order 13th November, 2021 in Petition No.
400/GT/2020 for 1.4.2019 to 31.3.2024
2.65
As Per Petitioners’ submission
16
NTPC Anta GPP
218
CERC Order 19-09-2017 in P.no. 287/GT/2014 for 01-04-
2014 to 31-03-2019
3.09
As Per Petitioners’ submission
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 52
Sr. No.
Generating Station
Fixed Charges
for FY 2023-24
(Rs. Crore)
Basis
Energy Charges
(Rs./kWh) for FY
2023-24
Basis
17
NTPC Kahalgaon 2
1,149
CERC Order 21-01-2017 in P.no. 283/GT/2014 for 01-04-
2014 to 31-03-2019
3.28
As Per Petitioners’ submission
18
KAPP Kakrapar
0
2.34
As Per Petitioners’ submission
19
TAPP Tarapur
0
2.91
DAE Notification dtd 22.03.2018 for
01.04.2017 to 31.03.2022
20
RAPP Rawabhatta
0
3.34
DAE Notification dtd 22.03.2018 for
01.04.2017 to 31.03.2022
21
NAPP Narora
0
2.99
DAE Notification dtd 22.03.2018 for
01.04.2017 to 31.03.2022
22
NTPC Solapur STPS, Phase-1
1,284
Prorated Fixed Charges based on actual bills for FY 2020-21
4.12
As Per Petitioners’ submission
23
NTPC Gadarwara STPS, Unit-1
1,100
Prorated Fixed Charges based on actual bills for the Period
January 2020 to December 2020
3.84
As Per Petitioners’ submission
24
NTPC Gadarwara STPS, Unit-2
1,100
Same as Fixed Charges for Gadarwara Unit-1
3.84
As Per Petitioners’ submission
25
NTPC Lara STPS, Raigarh, Unit I
1,255
Prorated Fixed Charges based on actual bills for the Period
January 2020 to December 2020
2.28
As Per Petitioners’ submission
26
NTPC Lara STPS, Raigarh, Unit II
1,255
Same as Fixed Charges for Lara Unit-1
2.28
As Per Petitioners’ submission
27
NTPC Firoz Gandhi Unchahar I
298
CERC Order dated 7th October, 2022 in Petition No.
431/GT/2020 from 1.4.2019 to 31.3.2024
4.47
As Per Petitioners’ submission
28
NTPC Firoz Gandhi Unchahar II
316
CERC Order dated 12th December, 2021 in Petition No.
438/GT/2020
4.39
As Per Petitioners’ submission
29
NTPC Firoz Gandhi Unchahar III
172
CERC Order dated 7th October, 2022 in Petition No.
427/GT/2020 from 1.4.2019 to 31.3.2024.
4.49
As Per Petitioners’ submission
30
NTPC Firoz Gandhi Unchahar IV
572
CERC Order dated 15th April, 2022 in Petition No.
3/GT/2021
4.64
As Per Petitioners’ submission
31
NTPC Rihand I
586
CERC Order dated 23.08.2016 in P. No. 291/GT/2014
1.88
As Per Petitioners’ submission
32
NTPC Rihand II
547
CERC Order date 8th April, 2022 in Petition No.
426/GT/2020 for 1.4.2019 to 31.3.2024
1.83
As Per Petitioners’ submission
33
NTPC Rihand III
1,019
CERC Order 06-02-2017 in P.no. 372/GT/2014 for 01-04-
2014 to 31-03-2019
1.92
As Per Petitioners’ submission
34
NTPC NCTP Dadri II
925
CERC Order 02-05-2017 in P.no. 324/GT/2014 for 01-04-
2014 to 31-03-2019
4.67
As Per Petitioners’ submission
35
NTPC Singrauli
907
CERC Order 28-07-2016 in P.no. 290/GT/2014 for 01-04-
2014 to 31-03-2019
1.89
As Per Petitioners’ submission
36
NTPC IGPS I Jhajjar
1,709
CERC Order 09-03-2017 in P.no. 266/GT/2014 for 01-04-
2014 to 31-03-2019
4.57
As Per Petitioners’ submission
37
NTPC Khargone STPS, Unit-I
822
Prorated Fixed Charges as per actual bills for the period April
2020 to March 2021
3.76
As Per Petitioners’ submission
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 53
Sr. No.
Generating Station
Fixed Charges
for FY 2023-24
(Rs. Crore)
Basis
Energy Charges
(Rs./kWh) for FY
2023-24
Basis
38
NTPC Khargone STPS, Unit-II
822
Prorated Fixed Charges as per actual bills for the period April
2020 to March 2021
3.76
As Per Petitioners’ submission
39
Meja Urja Nigam
1,133
Prorated Fixed Charges as per Petitioner submission
2.65
As Per Petitioners’ submission
40
NTPC Tanda Stage-II
2,850
Prorated Fixed Charges as per Petitioner submission
4.01
As Per Petitioners’ submission
41
DVC (MTPS & CTPS)
91
CERC Order 17-02-2017 in P.no. 180/GT/2015 for 01-04-
2014 to 31-03-2019 Fixed Charge as per Weighted Avg of
12 month Bill (Nov-19 to Oct-20)
3.81
As Per Petitioners’ submission
42
DVC (DTPS)
1,104
CERC Order 17-03-2017 in P.no. 205/GT/2015 for 01-04-
2014 to 31-03-2019
3.81
As Per Petitioners’ submission
43
Amarkantak TPS Ph-III
164
MPERC Order dated 19.05.2021 in P. No. 53 of 2020
3.25
As Per Petitioners’ submission
45
Satpura TPS Ph-IV
604
MPERC Order dated 19.05.2021 in P. No. 53 of 2020
2.45
As Per Petitioners’ submission
46
SGTPS Ph-I & II
457
MPERC Order dated 19.05.2021 in P. No. 53 of 2020
2.48
As Per Petitioners’ submission
47
SGTPS Ph-III
309
MPERC Order dated 19.05.2021 in P. No. 53 of 2020
2.10
As Per Petitioners’ submission
48
Shri Singaji STPS, Ph-I
1,247
MPERC Order dated 19.05.2021 in P. No. 53 of 2020
3.41
As Per Petitioners’ submission
49
Shri Singaji STPS, Ph-2
1,314
MPERC Order dated 19.05.2021 in P. No. 53 of 2020
3.06
As Per Petitioners’ submission
50
Rani Awanti Bai Sagar, Bargi HPS
18
MPERC Order dated 19.05.2021 in P. No. 53 of 2020
0.18
Computed based on the Design Energy
as per Tariff Order
51
Bansagar Ph I HPS (Tons)
156
MPERC Order dated 19.05.2021 in P. No. 53 of 2020
0.74
Computed based on the Design Energy
as per Tariff Order
52
Bansagar Ph-II HPS (Silpara)
MPERC Order dated 19.05.2021 in P. No. 53 of 2020
0.74
Computed based on the Design Energy
as per Tariff Order
53
Bansagar Ph-III HPS (Deolond)
MPERC Order dated 19.05.2021 in P. No. 53 of 2020
0.74
Computed based on the Design Energy
as per Tariff Order
54
Bansagar Ph-IV HPS (Jhinna)
10
MPERC Order dated 19.05.2021 in P. No. 53 of 2020
0.65
Computed based on the Design Energy
as per Tariff Order
55
Birsinghpur HPS
6
MPERC Order dated 19.05.2021 in P. No. 53 of 2020
0.66
Computed based on the Design Energy
as per Tariff Order
56
Marhikheda HPS
19
MPERC Order dated 19.05.2021 in P. No. 53 of 2020
1.71
Computed based on the Design Energy
as per Tariff Order
57
Rajghat HPS
15
MPERC Order dated 19.05.2021 in P. No. 53 of 2020
1.02
Computed based on the Design Energy
as per Tariff Order
58
Gandhisagar HPS
16
MPERC Order dated 19.05.2021 in P. No. 53 of 2020
0.19
Computed based on the Design Energy
as per Tariff Order
59
Ranapratap Sagar & Jawahar Sagar
HPS
0
As Per Petitioners’ submission
1.51
Computed based on the Design Energy
as per Tariff Order
60
Pench HPS
28
MPERC Order dated 19.05.2021 in P. No. 53 of 2020
0.46
Computed based on the Design Energy
as per Tariff Order
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 54
Sr. No.
Generating Station
Fixed Charges
for FY 2023-24
(Rs. Crore)
Basis
Energy Charges
(Rs./kWh) for FY
2023-24
Basis
61
NHDC Indira Sagar HPS
559
CERC order dated: 06.1.2022, Petition No.106/GT/2020
2.39
Computed based on the Design Energy
as per Tariff Order
62
NHDC Omkareshwar HPS
343
CERC order dated: 11th March, 2022, Petition No.
107/GT/2020
2.54
Computed based on the Design Energy
as per Tariff Order
63
Sardar Sarovar HPS
356
MPERC Order dated August 6,2013 in P. No. 18 of 2013
1.08
Computed based on the Design Energy
as per Tariff Order
64
Rihand HPS
0
As Per Petitioners’ submission
0.40
Computed based on the Design Energy
as per Tariff Order
65
Matatila HPS
0
As Per Petitioners’ submission
0.40
Computed based on the Design Energy
as per Tariff Order
66
SJVN Rampur HPS
673.33
CERC Order dated 24th January, 2022 in Petition No.
28/GT/2020 from 1.4.2019 to 31.3.2024
2.18
Computed based on the Design Energy
as per Tariff Order
67
SJVN Jhakri HPS
1378.97
CERC Order dated 16th September, 2021 in Petition
No.30/GT/2020 for 1.4.2019 to 31.3.2024.
1.32
Computed based on the Design Energy
as per Tariff Order
68
Tehri HPS
1,029
CERC Order dated 13th May 2022 in Petition No.
97/GT/2020 for 1.4.2019 to 31.3.2024
2.21
Computed based on the Design Energy
as per Tariff Order
69
Koteshwar HPP
552.56
CERC Order 3rd October, 2022 in Petition No.
244/GT/2020 from 1.4.2019 to 31.3.2024
2.81
Computed based on the Design Energy
as per Tariff Order
70
NHPC Parbati III
519.52
CERC Order dated 23.04.2019 in P. No. 6/GT/2017
1.52
Computed based on the Design Energy
as per Tariff Order
71
NHPC Chamera II
262
CERC Order dated 17.6.2016 in P. No. 233/GT/2014
1.08
Computed based on the Design Energy
as per Tariff Order
72
NHPC Chamera III
375
CERC Order dated 29.01.2020 in P. No. 321/GT/2018
1.99
Computed based on the Design Energy
as per Tariff Order
73
NHPC Dulhasti
772
CERC Order dated 9th May, 2022 in Petition No.
146/GT/2020
2.36
Computed based on the Design Energy
as per Tariff Order
74
NHPC Dhauliganga
253
CERC Order dated 18th August, 2022 in Petition No.
284/GT/2020
1.31
Computed based on the Design Energy
as per Tariff Order
75
NHPC Sewa II
243
CERC in Order dated 05.02.2020 in P. No. 322/GT/2018 for
FY 2014-15 to FY 2018-19.
2.73
Computed based on the Design Energy
as per Tariff Order
76
NHPC Uri II
412
CERC Tariff Order 05.02.2020 in P. No. 308/GT/2018
0.00
Computed based on the Design Energy
as per Tariff Order
77
NHPC Kishanganga
498
CERC Tariff Order 28.10.2019 in P. No. 43/GT/2018
1.66
Computed based on the Design Energy
as per Tariff Order
78
NTPC Koldam HPP I
1,310
CERC order dated 05.04.2018 in P. No. 107/GT/2015 upto
FY 2018-19
2.58
Computed based on the Design Energy
as per Tariff Order
79
NTPC Singrauli Small HPP
0
As Per Petitioners’ submission
9.32
As Approved in MYT
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 55
Sr. No.
Generating Station
Fixed Charges
for FY 2023-24
(Rs. Crore)
Basis
Energy Charges
(Rs./kWh) for FY
2023-24
Basis
80
NHPC Lower Subansiri HEP Unit-1
0
As Per Petitioners’ submission
5.09
As Per Petitioners’ submission
81
BLA Power
64
MPERC Order in P. No. 17 of 2018 dated 25.10.2021
3.15
As Per Petitioners’ submission
82
Jaypee Bina Power
647
MPERC Order in P. No. 44 of 2020 dated 30.04.2021
3.39
As Per Petitioners’ submission
83
Lanco Amarkantak TPS Unit 1
264
MPERC Order in P.No. 60 of 2020 dated 24.08.2021
2.58
As Per Petitioners’ submission
84
Reliance UMPP, Sasan
513
As per Petitioner submission
1.34
As Per Petitioners’ submission
85
Jaiprakash Power STPS, Nigri
1,605
MPERC order in Petition No. 43 of 2020 dated 03.05.2021
0.92
As Per Petitioners’ submission
86
MB Power STPS
1,467
MPERC Order in Petition No. 46 of 2020 dated 01.05.2021
2.89
As Per Petitioners’ submission
87
Jhabua Power STPS, Unit-1
752
MPERC order in Petition No. 47 of 2020 dated 08.05.2021
2.79
As Per Petitioners’ submission
88
Other RPO (exculding Hydro)
0
3.80
Weighted Average Energy purchase
Rates for Other RPO
89
Wind RPO
0
2.74
Weighted Average Energy purchase
Rates for Wind RPO
90
HPO
0
5.09
As per NHPC Lower Subansiri HEP
2.61 For determination of power purchase expenses, the Commission has applied the principles of Merit Order Dispatch (MOD) on the basis of energy
charges admitted for all generating stations for FY 2023-24. Further, the Commission directs the Petitioners to not restrict supply unduly to any
category of consumers during the FY 2023-24.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 56
2.62 The allocation of Merit Order Dispatch for generating station applicable for FY 2023-24 is
shown in the table below:
Table 24: MOD on allocated generating stations for FY 2023-24
Sr. No.
Generating Station
Dispatch Type
(1 Must Run, 0 Others)
Energy Charges
(Paisa/kWh)
1
Rani Awanti Bai Sagar, Bargi HPS
1
18
2
Gandhisagar HPS
1
19
3
Rihand HPS
1
40
4
Matatila HPS
1
40
5
Pench HPS
1
46
6
Bansagar Ph-IV HPS (Jhinna)
1
65
7
Birsinghpur HPS
1
66
8
Bansagar Ph I HPS (Tons)
1
74
9
Bansagar Ph-II HPS (Silpara)
1
74
10
Bansagar Ph-III HPS (Deolond)
1
74
11
Rajghat HPS
1
102
12
Sardar Sarovar HPS
1
108
13
NHPC Chamera II
1
108
14
NHPC Dhauliganga
1
131
15
SJVN Jhakri HPS
1
132
16
Ranapratap Sagar & Jawahar Sagar HPS
1
151
17
NHPC Parbati III
1
152
18
NHPC Kishanganga
1
166
19
Marhikheda HPS
1
171
20
NHPC Chamera III
1
199
21
SJVN Rampur HPS
1
218
22
Tehri HPS
1
221
23
KAPP Kakrapar
1
234
24
NHPC Dulhasti
1
236
25
NHDC Indira Sagar HPS
1
239
26
NHDC Omkareshwar HPS
1
254
27
NTPC Koldam HPP I
1
258
28
NHPC Sewa II
1
273
29
Wind RPO
1
274
30
Koteshwar HPP
1
281
31
TAPP Tarapur
1
291
32
NAPP Narora
1
299
33
RAPP Rawabhatta
1
334
34
Other RPO (excluding Hydro)*
1
380
35
NHPC Lower Subansiri HEP Unit-1
1
509
36
HPO (excluding NHPC Lower Subansiri
HEP)
1
509
37
NTPC Singrauli Small HPP
1
932
38
Jaiprakash Power STPS, Nigri
0
92
39
Reliance UMPP, Sasan
0
134
40
NTPC Sipat II
0
157
41
NTPC Korba III
0
161
42
NTPC Vindyachal IV
0
171
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 57
Sr. No.
Generating Station
Dispatch Type
(1 Must Run, 0 Others)
Energy Charges
(Paisa/kWh)
43
NTPC Vindyachal III
0
172
44
NTPC Korba
0
173
45
NTPC Vindyachal V Unit 1
0
177
46
NTPC Rihand II
0
183
47
NTPC Rihand I
0
188
48
NTPC Singrauli
0
189
49
NTPC Rihand III
0
192
50
NTPC Vindyachal II
0
193
51
NTPC Vindyachal I
0
199
52
SGTPS Ph-III
0
210
53
NTPC Sipat I
0
224
54
NTPC Lara STPS, Raigarh, Unit I
0
228
55
NTPC Lara STPS, Raigarh, Unit II
0
228
56
Satpura TPS Ph-IV
0
245
57
SGTPS Ph-I & II
0
248
58
Lanco Amarkantak TPS Unit 1
0
258
59
NTPC Dadri GPP
0
265
60
Meja Urja Nigam
0
265
61
Jhabua Power STPS, Unit-1
0
279
62
NTPC Gandhar GPP
0
280
63
MB Power STPS
0
289
64
Shri Singaji STPS, Ph-2
0
306
65
NTPC Anta GPP
0
309
66
BLA Power
0
315
67
NTPC Kawas GPP
0
325
68
Amarkantak TPS Ph-III
0
325
69
NTPC Kahalgaon 2
0
328
70
Jaypee Bina Power
0
339
71
Shri Singaji STPS, Ph-I
0
341
72
NTPC Khargone STPS, Unit-I
0
376
73
NTPC Khargone STPS, Unit-II
0
376
74
DVC (MTPS & CTPS)
0
381
75
DVC (DTPS)
0
381
76
NTPC Gadarwara STPS, Unit-1
0
384
77
NTPC Gadarwara STPS, Unit-2
0
384
78
NTPC Tanda Stage-II
0
401
79
NTPC Solapur STPS, Phase-1
0
412
80
NTPC Firoz Gandhi Unchahar II
0
439
81
NTPC Mouda II Unit 1
0
443
82
NTPC Firoz Gandhi Unchahar I
0
447
83
NTPC Firoz Gandhi Unchahar III
0
449
84
NTPC IGPS I Jhajjar
0
457
85
NTPC Firoz Gandhi Unchahar IV
0
464
86
NTPC NCTP Dadri II
0
467
87
NTPC Mouda I
0
567
88
NTPC Auraiya GPP
0
876
* In accordance with the MPERC (Cogeneration and Generation of Electricity from Renewable Sources
of Energy) (Revision-II) Regulations, 2021 and amendment thereof.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 58
Fixed and Energy Charges
2.63 On the basis of the above, the Fixed and Energy charges of the generating stations towards
allocated capacities of MPPMCL admitted by the Commission are shown in the following
table:
Table 25 : Fixed and Energy Charges of all generating stations admitted for FY 2023-24
Sr. No.
Generating Station
Fixed Charges
(Rs. Crore)
Energy Charges
(Rs. Crore)
Total
(Rs. Crore)
1
KAPP Kakrapar
0.00
190.95
190.95
2
TAPP Tarapur
0.00
462.54
462.54
3
RAPP Rawabhatta
0.00
3.34
3.34
4
NAPP Narora
0.00
2.16
2.16
5
Rani Awanti Bai Sagar, Bargi HPS
9.15
7.57
16.73
6
Bansagar Ph I HPS (Tons)
77.75
73.51
151.26
7
Bansagar Ph-II HPS (Silpara)
0.00
6.53
6.53
8
Bansagar Ph-III HPS (Deolond)
0.00
7.21
7.21
9
Bansagar Ph-IV HPS (Jhinna)
4.82
5.68
10.49
10
Birsinghpur HPS
2.39
3.78
6.16
11
Marhikheda HPS
9.47
19.43
28.90
12
Rajghat HPS
2.72
5.21
7.92
13
Gandhisagar HPS
1.95
2.58
4.52
14
Ranapratap Sagar & Jawahar Sagar HPS
0.00
36.34
36.34
15
Pench HPS
9.17
9.91
19.09
16
NTPC Singrauli Small HPP
0.00
0.17
0.17
17
NHPC Lower Subansiri HEP Unit-1
0.00
75.15
75.15
18
Other RPO (exculding Hydro)
0.00
5,737.15
5,737.15
19
Wind RPO
0.00
452.99
452.99
20
HPO (exculding NHPC Lower Subansiri
HEP)
0.00
227.02
227.02
21
Rihand HPS
0.00
4.44
4.44
22
Matatila HPS
0.00
1.61
1.61
23
Jaiprakash Power STPS, Nigri
601.82
319.19
921.00
24
NHPC Chamera II
0.58
0.67
1.24
25
Sardar Sarovar HPS
101.45
194.07
295.52
26
NHPC Dhauliganga
0.47
0.49
0.96
27
SJVN Jhakri HPS
1.65
2.02
3.68
28
Reliance UMPP, Sasan
192.50
1,530.99
1,723.50
29
NHPC Parbati III
0.96
0.75
1.72
30
NTPC Sipat II
125.09
231.98
357.07
31
NTPC Korba III
56.55
93.98
150.53
32
NHPC Kishanganga
0.75
0.72
1.47
33
NTPC Vindyachal IV
303.39
358.34
661.72
34
NTPC Vindyachal III
175.78
306.06
481.84
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Madhya Pradesh Electricity Regulatory Commission Page 59
Sr. No.
Generating Station
Fixed Charges
(Rs. Crore)
Energy Charges
(Rs. Crore)
Total
(Rs. Crore)
35
NTPC Korba
247.82
641.10
888.92
36
NTPC Vindyachal V Unit 1
159.78
182.14
341.92
37
NTPC Rihand II
0.49
1.10
1.59
38
NTPC Rihand I
0.47
1.19
1.66
39
NTPC Singrauli
0.72
2.09
2.82
40
NTPC Rihand III
1.02
1.53
2.55
41
NTPC Vindyachal II
170.02
436.39
606.42
42
NHPC Chamera III
0.69
0.74
1.43
43
NTPC Vindyachal I
270.06
634.61
904.67
44
SGTPS Ph-III
309.32
740.30
1,049.62
45
SJVN Rampur HPS
0.74
0.87
1.61
46
Tehri HPS
1.23
1.40
2.64
47
NTPC Sipat I
281.05
478.86
759.91
48
NTPC Lara STPS, Raigarh, Unit I
138.17
152.26
290.43
49
NTPC Lara STPS, Raigarh, Unit II
138.17
151.34
289.51
50
NHPC Dulhasti
1.43
1.48
2.91
51
NHDC Indira Sagar HPS
279.46
509.69
789.14
52
Satpura TPS Ph-IV
603.99
854.63
1,458.62
53
SGTPS Ph-I & II
404.14
1,145.74
1,549.88
54
NHDC Omkareshwar HPS
171.38
280.00
451.38
55
NTPC Koldam HPP I
1.11
1.31
2.42
56
Lanco Amarkantak TPS Unit 1
264.22
469.72
733.94
57
Meja Urja Nigam
2.04
3.74
5.78
58
NTPC Dadri GPP
1.21
5.84
7.05
59
NHPC Sewa II
0.45
0.52
0.97
60
Jhabua Power STPS, Unit-1
263.03
355.55
618.58
61
NTPC Gandhar GPP
88.73
9.84
98.57
62
Koteshwar HPP
0.66
0.71
1.38
63
MB Power STPS
513.40
728.28
1,241.67
64
Shri Singaji STPS, Ph-2
1,314.19
1,603.53
2,917.72
65
NTPC Anta GPP
0.81
0.00
0.81
66
BLA Power
18.77
17.62
36.39
67
Amarkantak TPS Ph-III
163.59
253.38
416.97
68
NTPC Kawas GPP
95.82
4.27
100.09
69
NTPC Kahalgaon 2
56.67
90.55
147.22
70
Jaypee Bina Power
452.96
407.38
860.34
71
Shri Singaji STPS, Ph-I
1,246.84
898.90
2,145.74
72
NTPC Khargone STPS, Unit-I
425.77
147.07
572.84
73
NTPC Khargone STPS, Unit-II
425.77
0.00
425.77
74
DVC (MTPS & CTPS)
36.51
0.00
36.51
75
DVC (DTPS)
110.42
0.00
110.42
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 60
Sr. No.
Generating Station
Fixed Charges
(Rs. Crore)
Energy Charges
(Rs. Crore)
Total
(Rs. Crore)
76
NTPC Gadarwara STPS, Unit-1
570.18
0.00
570.18
77
NTPC Gadarwara STPS, Unit-2
570.18
0.00
570.18
78
NTPC Tanda Stage-II
1.71
0.00
1.71
79
NTPC Solapur STPS, Phase-1
311.11
0.00
311.11
80
NTPC Firoz Gandhi Unchahar II
0.28
0.00
0.28
81
NTPC Mouda II Unit 1
24.95
0.00
24.95
82
NTPC Firoz Gandhi Unchahar I
0.09
0.00
0.09
83
NTPC Firoz Gandhi Unchahar III
0.15
0.00
0.15
84
NTPC IGPS I Jhajjar
3.08
0.00
3.08
85
NTPC Firoz Gandhi Unchahar IV
0.57
0.00
0.57
86
NTPC NCTP Dadri II
0.83
0.00
0.83
87
NTPC Mouda I
16.06
0.00
16.06
88
NTPC Auraiya GPP
1.11
0.00
1.11
Total
11,841.82
21,590.24
33,432.06
Renewable Purchase Obligation (RPO)
Petitioners’ Submission
2.64 The Petitioners submitted that in view of the RPO target specified in MPERC (Co-generation
and generation of electricity from Renewable sources of energy) (Revision-II) Regulations,
2021 vide notification dated 12th November, 2021 and Tariff Policy, 2016, the Petitioners
have made arrangements under various PPA’s for its compliance. Further, the Commission
defined a percentage of RPO on Ex-Bus Requirement by excluding Hydel sources of power.
As a result, surplus availability is projected from Solar and deficit in availability is projected
from Non-solar sources during the FY 2023-24, for complying with RPO targets.
2.65 Accordingly, the Petitioners have computed RPO requirement (which is already included in
the power purchase cost) as shown in the following table:
Table 26: Renewable Purchase Obligation and Cost as submitted by the Petitioners for FY 2023-24
Sr. No.
Particulars
FY 2023-24
A
RPO Obligations (%)
20.00%
1
Solar
10.00%
2
Other than Solar
10.00%
B
Ex-Bus RPO Requirement based on MoD (MUs) excluding Hydro
16,140.99
1
Solar
8,070.50
2
Other than Solar
8,070.50
C
Energy Available from Existing Sources (MUs)
16,762.58
1
Solar
10,297.82
2
Other than Solar
6,464.76
D
Shortfall (MUs)
1,605.74
1
Solar
-
2
Other than Solar
1,605.74
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Madhya Pradesh Electricity Regulatory Commission Page 61
Sr. No.
Particulars
FY 2023-24
E
Extra Power Available for Sale after meeting RPO obligations which
needs to be sold (MUs)
2,227.32
1
Solar
2,227.32
2
Other than Solar
-
G
Renewable Energy Purchase Rate (Paisa/kWh)
1
Solar
317.50
2
Other than Solar
451.77
H
Renewable Energy Purchase from Existing Source (Rs Crores)
6,190.14
1
Solar
3,269.55
2
Other than Solar
2,920.60
I
Renewable Energy Purchase for Shortage Power (Rs Crores)
725.43
1
Solar
-
2
Other than Solar
725.43
J
Total Renewable Energy Purchase to meet RPO (Rs Crores)
6,915.57
1
Solar
3,269.55
2
Other than Solar
3,646.02
K
Renewable Energy Sale Rate for Surplus Power (Paisa/kWh)
1
Solar
470.40
2
Other than Solar
470.40
L
Revenue from sale of additional Renewable Energy (Rs Crores)
755.34
1
Solar
-
2
Other than Solar
755.34
M
Net additional cost to be borne due to shortage of RPO (Rs. Cr)
(29.91)
1
Solar
-
2
Other than Solar
(29.91)
Commission’s Analysis
2.66 The Commission had notified the MPERC (Co-generation and generation of electricity from
Renewable sources of energy) (Revision-II) Regulations, 2021 on 12
th
November, 2021 and
its first amendment on 16
th
January, 2023. In the said Regulations, the Commission has
specified Renewable Purchase Obligation (RPO) for Wind, HPO and Other sources for the
Period from FY 2022-23 to FY 2029-30.
2.67 Accordingly, the Commission has computed quantum of Wind, HPO and Other power
purchase requirement for RPO compliance based on the total energy requirement admitted
for the FY 2023-24, as shown in the table below:
Table 27: Renewable Purchase Obligation and Cost as computed by the Commission for FY 2023-24
Particulars
FY 2023-24
Other RPO (%)
25.13%
Wind RPO (%)
1.60%
HPO (%)
0.66%
Total (%)
27.39%
Energy Requirement for Computation of RPO
89,948.62
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 62
Particulars
FY 2023-24
Power purchase to fulfil RPO (MUs)
Other RPO
22,604.09
Wind RPO
1,439.18
HPO
593.66
Total
24,636.93
Energy available from existing RE Plants (MU)
Other RPO
22,850.14
Wind RPO
1,653.05
HPO
147.65
Total
24,650.84
Shortfall / (Surplus) (MU)
Other RPO
0.00
Wind RPO
0.00
HPO
446.01
Total
446.01
2.68 From above, it can be observed that the Petitioners will be having surplus energy from Other
(inclusive of Wind sources from the existing Wind Generating Stations, considered as per
Regulation 3.1(a) of the Co-generation, Regulations, 2021 and amendments thereof) and
Wind RPO resources after meeting the RPO obligation in FY 2023-24, whereas there will be
shortfall in availability for compliance of HPO. Therefore, the Commission has considered
the cost of additional power purchase for compliance of RPO shortfall in the Power Purchase
Cost.
2.69 The Commission has considered rate of Rs. 5.09/kWh i.e., Rate of latest signed PPA for
NHPC Lower Subansiri HEP for fulfilment of shortfall in HPO as the renewable energy
certificate mechanism corresponding to Hydro power has not yet been implemented for HPO
compliance.
2.70 Based on the above, the cost of renewable energy power purchase has been worked out for
the compliance of RPO as shown in the table below:
Table 28: RE power purchase cost for RPO compliance for FY 2023-24
Particulars
FY 2023-24
Additional Power purchase requirement for fulfilment of RPO (MU)
Other RPO
0.00
Wind RPO
0.00
HPO
446.01
Total
446.01
Renewable Energy purchase Rates for additional power procurement (Rs./kWh)
Other RPO
0.00
Wind RPO
0.00
HPO
5.09
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 63
Particulars
FY 2023-24
Power Purchase Cost for meeting shortfall in RPO (Rs. Crore)
Other RPO
0.00
Wind RPO
0.00
HPO
227.02
Total
227.02
Total Power Purchase cost for RPO Compliance (Rs. Crore)
Other RPO (excluding Hydro)
5,737.15
Other RPO (Hydro)
1,859.86
Wind RPO
452.99
HPO
302.17
Total
8,352.17
Weighted Average Energy purchase Rates for RE (Rs./kWh)
Other RPO (excluding Hydro)
3.80
Wind RPO
2.74
HPO
5.09
2.71 The Cost of purchase from Wind, HPO and Other Sources has been considered in the power
purchase cost shown in table 25 of this Order.
Management of Surplus Energy
Petitioners’ Submission
2.72 The Petitioners submitted that the Commission admitted quantum of 14,608.19 MU as surplus
Energy available for sale in power exchange for FY 2023-24 at rate of Rs.3.33 per unit
resulting into saving of Rs. 398.93 Crore in power purchase cost. However, it has been
observed that the quantum of sale of surplus power have always been approved on higher side
in respective Tariff Orders as against the realistic sale of surplus energy sold by the
Petitioners. The consideration of higher quantum of surplus results in reducing the power
purchase cost and thereby ARR of DISCOMs.
2.73 However, the Petitioners have been projecting the realistic sale of surplus energy based on its
past experience considering the actual energy traded at power exchange during the past years.
Further, the Petitioners submitted that the sale of power at power exchange depends on the
factors such as Demand situation of MP-State in MW, availability of surplus energy with
MPPMCL in MW in time blocks, Demand-Supply position in the power sector and Marginal
Clearing Price (MCP) at the market. It is to mention that Petitioners do not have control over
the availability of power stations and MCP of power exchange.
2.74 Further, the Petitioners submitted that the approval of higher quantum of surplus sale is mainly
because the Commission approves the sales at normative losses and the difference of
approved sales and availability are being considered as surplus power available for sale.
However, on actual scenario considering the Demand-Supply position with actual losses the
results are different. For FY 2023-24 also, as per the current power supply position, and after
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 64
meeting the energy requirement at actual loss situation, the Petitioners envisage to have
surplus energy in few of the time blocks and months in the ensuing year. Further, in case the
Petitioners projects the surplus sale considering the past trend, the same would not get
approved as the Commission adopts different methodology. Hence, in order to have minimum
deviation in projection and approval of power purchase cost, MPPMCL has considered
ambitious target to sale around 50% to 60% of surplus energy available, i.e., around 11,612
MUs. However, the Petitioners requested the Commission to consider lower quantum of
surplus power to be sold through exchange considering the past actuals.
2.75 The Petitioners submitted that the average IEX rate for the past 24 months (From October
2022 to October-2022) is Paisa 470.40 per unit. Hence, for the purpose of computation of
revenue from surplus energy, the average rate has been considered as Paisa 470.40 per unit
for FY 2023-24.
2.76 The energy surplus for DISCOMs vis-à-vis overall energy availability and energy
requirement as well as the details of revenue from sales of energy as per submission of
Petitioners are shown in the table below.
Table 29: Management of Surplus Energy as submitted by Petitioners
Particulars
FY 2023-24
Ex-Bus Availability (MU)
1,14,147
Ex-Bus Energy Required by DISCOMs (MU)
88,356
Backdown of Power including Surplus Sale of Power (MU)
25,792
Backdown (MU)
14,179
Surplus Units available for Sale (MU)
11,612
IEX Rate (Paisa/kWh)
470.40
Revenue from Sale of Surplus Power (Rs. Crore)
5,462
Purchase Cost of Surplus Power- Variable (Rs Crores)
3,827
Total saving in variable cost from sale of surplus energy from
sale of surplus energy (Rs. Crore)
1,635
Commission’s Analysis
2.77 The Commission observed that after meeting the energy requirement and meeting demand of
consumers, the availability from some of the generating stations would remain unutilized by
the DISCOMs. It is expected that various rebates given to consumers would encourage them
to utilise some of the surplus power.
2.78 Further, the Commission has considered the actual rate discovered in IEX from April, 2021
to January, 2023 excluding abnormal months (i.e months having MCP above Rs. 5/kWh) as
the reference rate i.e., Rs. 3.89/kWh for backing down in line with the approach adopted in
MYT Order. Last year due to extraordinary situation the power prices increased sharply in
some months. However, due to various measures taken this year, abnormal price rise may not
be there.
2.79 For arriving at the quantum of power to be sold and rate to be considered, the Commission
obtained the information about the actual quantum sold and average rate at which it has been
sold for last 3 years (FY 2020-21, FY 2021-22 and FY 2022-23 (upto Dec 2022). The actual
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 65
information submitted by the Petitioners is given in Table below:
Table 30: Surplus Energy information for last 3 years as submitted by Petitioners
Particulars
FY 2020-21
FY 2021-22
FY 2022-23
(upto Dec)
Actual Ex-Bus Energy Availability (MUs)
1,10,408.32
1,04,358.59
80,356.13
Actual Ex-Bus Energy Requirement by DISCOMs (MUs)
83,458.94
86,498.06
67,909.41
Actual Surplus Energy Available (MUs)
26,949.39
17,860.53
12,446.72
Actual Energy Backdown (MUs)
26,373.24
14,614.58
8,249.23
Actual Energy Sold in Open Market (MUs)
1,511.68
2,915.67
3,677.38
Actual Energy Sold as % of Surplus Energy (%)
5.61%
16.32%
29.54%
Actual Revenue from the Sale of Surplus Power (Rs. Crore)
613.77
1,309.90
1,748.55
2.80 Based on analysis of actual surplus energy sold it is observed that sale of surplus energy in
open market is showing increasing trend. Therefore, considering the realistic scenario of sale
of surplus power through open market and considering gradual increasing trend in previous
years, the Commission has considered 8,000 MUs as likely scenario for sale of surplus power
through Power Exchanges, bilateral arrangements or through bidding. However, the
Commission directs the Petitioners to make all efforts to sale maximum possible surplus
energy through Power Exchanges, bilateral arrangements or through bidding in order
to maximize the revenue and also make best use of new platforms like HP-DAM (High
Price Day Ahead Market) and surplus power portal (PUShp) for disposing of surplus
power.
2.81 As regards the rate for sell of surplus energy, it is observed that the average rate at which the
surplus energy was sold in FY 2021-22 is Rs 4.49/kWh which has increased to Rs 4.75/kWh
during first nine months of FY 2022-23. The rate has increased marginally in FY 2022-23 due
to extra ordinary circumstances of power shortages in the months of April to June 2022 i.e.,
summer months. However, for FY 2023-24, MoP, GoI has now directed all the generating
stations to maximise the generation in summer months. MoP has also directed the generating
stations to use 6% imported coal to maximise the generation in summer months. The average
clearing price in IEX during last one year excluding the abnormal price months works out to
around Rs 4.46/kWh. Accordingly, the Commission has considered the rate of Rs 4.50/kWh
for sale of surplus energy to assess the total revenue from sale of surplus energy.
2.82 Further, the Commission has observed that the MPPMCL has entered into Bulk Power Supply
agreement with MPIDC (erstwhile MPAKVN) for supply of 60 MW power. MPIDC has been
purchasing the remaining requirement of energy also from MPPMCL only. The projected
requirement of MPIDC for FY 2023-24 has been considered as 562 MUs and average rate of
power purchase of Rs. 3.92/kWh as approved by the Commission in MYT Order for FY 2023-
24. Any under /over recovery shall be adjusted at the time of truing up of FY 2023-24.
2.83 Accordingly, based on the above, the details of savings in the power purchase cost through
sale of surplus power has been shown in the table below for FY 2023-24:
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 66
Table 31 : Details of saving in power purchase cost through sale of Surplus energy
Sr.
No.
Particulars
Reference
FY 2023-24
1
Total Energy Availability including additional availability due to purchase
of additional RE Power RPO Compliance (MU)
A
1,15,060.31
2
Total Energy Requirement (MU)
B
89,948.62
3
Total Energy surplus (MU)
C=A-B
25,111.69
4
Energy Backdown (MU)
D
2,915.98
5
Energy Available for surplus sale of power (MU)
E=C-D
22,195.71
7
Sale of power to MPIDC (MU) as approved in MYT Order for FY 2022-23
F
562.16
8
Average Power Purchase Cost of MPIDC as per approved in MYT Order
for FY 2022-23 (Rs. /kWh)
G
3.92
9
Revenue from sale of power MPIDC (Rs. Crore)
H=F*G/10
220.37
10
Net Surplus Energy available for sale (MU)
I=E-F
21,633.55
11
Surplus Energy considered for sale
J
8,000.00
12
Per unit cost of sale of power through energy exchange (Paisa/kWh)
K
4.50
13
Revenue from Sale of Power through Power Exchange (PX) (Rs Crore)
L=J*K/10
3,600.00
14
Total Revenue from sale of surplus power in PX and MPIDC (Rs. Crore)
M=H+I
3,820.37
15
Energy Charge of Surplus Energy (Rs Crore)
N
3,013.88
16
Total saving in Power Purchase Cost by sale of surplus Energy
(Rs. Crore)
O=M-N
806.49
2.84 With these principles, though the estimated surplus energy works out to 22,195.71 MUs, the
Commission has considered the sale of 8,562.16 MUs only (8000 MUs surplus sale and
562.16 MUs to MPIDC). The variable cost of remaining surplus energy of 13,633.55 MUs
has not been considered by the Commission while projecting the power purchase costs for FY
2023-24. However, the Petitioners are directed to make all efforts to sale maximum possible
surplus energy as mentioned in para 2.80.
2.85 Considering the Petitioner’s submissions and stakeholders’ views, the Commission has
incorporated various rebates in the tariff design, which may lead to increase in sales of
DISCOMs and reduce the quantum of surplus power, further.
Inter-State Transmission Charges
Petitioners’ Submissions
2.86 The Petitioners have submitted that Inter-State transmission charges consist of the charges for
transmission system of WR, NR and ER. The Petitioners have considered Inter-State
Transmission Charges for FY 2021-22 as per actual figures from power purchase statement
and the same has been increased annually by 4% for each year form actuals for FY 2023-24.
2.87 The Petitioners have further submitted that the Inter-State transmission costs have then been
allocated to DISCOMs based on energy allocation from Central Generating Stations and Ex-
bus energy requirement, which is as follows:
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 67
Table 32: Inter-State Transmission Charges claimed for FY 2023-24 (Rs. Crore)
Particulars
FY 2023-24
State
3,025.47
Commission’s Analysis
2.88 Inter State transmission charges consist of charges to be paid for transmission systems of
Western, Eastern and Northern Regions. The Commission observed that Inter-Sate
transmission charges increased by 15.15% in FY 2021-22 with respect to FY 2020-21, which
is not in line with the increase in previous years. The Petitioners have claimed nominal
increase of 4% in Inter-State transmission charges for each year from actual figures of FY
2021-22, which is less than the increase observed in previous years. Therefore, the
Commission has considered the escalation rate of 4% per annum for increase in Inter State
Transmission Charges during each year which is line with the approach adopted in MYT
Order for FY 2022-23 to FY 2026-27. The actual Inter -State transmission charges of FY
2021-22 have been escalated by 4% per annum for 2 years to arrive at the Inter-State
transmission charges for FY 2023-24.
Table 33: Inter-State Transmission Charges admitted for FY 2023-24 (Rs. Crore)
Particulars
FY 2023-24
State
3,025.47
Intra-State Transmission Charges and SLDC Charges
Petitioners’ Submission
2.89 The Petitioners have considered Intra-State Transmission Charges for FY 2023-24 as per
MPPTCL Transmission Tariff Order for the Control Period from FY 2019-20 to FY 2023-24.
2.90 The Petitioners have considered actual SLDC Charges of FY 2020-21 and has considered 4%
increment in each year from actual incurred for FY 2021-22.
2.91 Further the Petitioners have allocated Intra-State transmission charges based on energy
allocation from Central Generating Stations and as per Ex-bus Energy requirement. which is
indicated in the table below:
Table 34: Intra-State Transmission Charges and SLDC charges claimed for FY 2023-24 (Rs. Crore)
Sr. No
Transmission Charges
FY 2023-24
1
East DISCOM
1,286.14
2
Central DISCOM
1,499.32
3
West DISCOM
1,538.56
4
State
4,324.02
Sr. No
SLDC Charges
FY 2023-24
1
East DISCOM
2.54
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 68
Sr. No
Transmission Charges
FY 2023-24
2
Central DISCOM
3.03
3
West DISCOM
5.42
4
State
10.99
Sr. No
Transmission Charges including SLDC Charges
FY 2023-24
1
East DISCOM
1,288.68
2
Central DISCOM
1,502.35
3
West DISCOM
1,543.98
4
State
4,335.01
Commission’s Analysis
2.92 The Commission has already determined Intra-State Transmission Charges for the period
from FY 2019-20 to FY 2023-24 in the MPPTCL MYT order dated 19
th
May, 2021 in Petition
No. 45/2020. Accordingly, Commission has considered Intra-State transmission charges for
FY 2023-24 as per aforesaid MYT Order.
2.93 The Commission has admitted SLDC Charges for FY 2023-24 vide SLDC fees and charges
Order dated 20
th
February, 2023 in Petition No.73 of 2022. The same has been considered for
the FY 2023-24.
2.94 Accordingly, Intra–State transmission charges including SLDC charges for FY 2023-24 have
been admitted as shown in the table below:
Table 35 : Intra-State Transmission Charges including SLDC Charges admitted for FY 2023-24 (Rs. Crore)
Sr. No
Intra-State Transmission Charges
FY 2023-24
1
East DISCOM
1,286.14
2
West DISCOM
1,538.56
3
Central DISCOM
1,499.32
4
State
4,324.02
Sr. No
SLDC Charges
FY 2023-24
1
East DISCOM
4.59
2
West DISCOM
5.49
3
Central DISCOM
5.35
4
State
15.43
Sr. No
Transmission Charges including SLDC Charges
FY 2023-24
1
East DISCOM
1,290.73
2
West DISCOM
1,544.05
3
Central DISCOM
1,504.67
4
State
4,339.45
2.95 The Commission has allowed the terminal benefits and pension expenses on “pay as you go”
principle payable to MP Transco. The actual amount of terminal benefits shall be considered
by the Commission in true-up petition to be filed by MPPTCL after exercising prudence
check.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 69
MPPMCL Costs: Details and DISCOM-wise Allocation
Petitioners’ Submission
2.96 As per item No.8 (ii) of State Govt. Notification No.2260-F-3-24-2009-XIII dated 19
th
March,
2013 to meet its own expenses, M.P. Power Management Company Limited (MPPMCL) has
been supplying power to the DISCOMs at the tariff determined/admitted by the Commission
and its own expenses on actual basis in proportion to the energy drawl by respective
DISCOMs.
2.97 Further, MPPMCL has been operating on “No Profit and No Loss” basis. Therefore, till now
at the end of each financial year, all the credits received by MPPMCL which formed the part
of income of MPPMCL are being passed on to the DISCOMs in proportion to the energy
drawl by respective DISCOMs as a part of their Power Purchase Costs. The major components
of Annual Revenue Requirement of MPPMCL for FY 2023-24 are mentioned in the table
below:
Table 36: MPPMCL Cost claimed for FY 2023-24 (Rs. Crore)
Sr. No.
Particulars
FY 2023-24
I.
Revenue from operations (including Revenue Subsidy)
-
II.
Other income
117.92
III.
Income from other business allocated to Licensed business
IV
Total Revenue (I + II+III)
117.92
V
Expenses:
Purchase of Power from Other Sources
99.87
Inter-State Transmission charges
7.34
Depreciation and amortzation expenses
8.49
Interest & Finance Charges
266.91
Repairs and Maintenance
3.37
Employee costs
70.22
Administration and General expenses
29.64
Other Debits, Write-offs
4.37
Total Expenses
490.19
VI
Profit before exceptional and extraordinary items and tax (IV-V)
(372.26)
VII
Exceptional items
-
VIII
Profit before extraordinary items and tax (VI – VII)
(372.26)
Commission’s Analysis
2.98 The Commission has observed that most of the expenses included in MPPMCL cost relates
to power purchase. The Commission in previous Tariff Orders had directed the Petitioners to
include power purchase expense booked towards MPPMCL cost under DISCOMs power
purchase expense. The Petitioners have submitted that the major cost under power purchase
is towards payment of bills, which could not be passed on to DISCOMs through monthly bills,
open access charges paid for banking of power and short-term power purchase and sale.
However, from FY 2022-23 all the bills are likely to be passed through the monthly bills to
the DISCOMs, hence, revenue from operations has been considered as nil in FY 2023-24 as
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 70
per Petitioners submission.
2.99 The Commission has observed that MPPMCL has been doing exchange/banking of energy
with third parties outside Madhya Pradesh whereby during the availability of surplus power
in the State, electricity is supplied to the parties having requirement of power and during the
period of power deficit in the State, the banked electricity is taken back by the Company. It is
also observed that MPPMCL has not been able to return the full quantum of power drawn
from banked energy in the same financial year and therefore, has been owing liability in
financial terms against the banking. The Commission is of the opinion that such transactions
do not involve any expense except for Open Access charges. As per the directions in previous
Tariff Orders, these expenses are required to be booked under the head of power purchase of
respective DISCOMs. Therefore, the Commission has not admitted such power purchase
expense under MPPMCL cost.
2.100 Further, the Commission has admitted only the expenses of MPPMCL towards Operation and
Maintenance Expenses and depreciation. The Interest and Finance charges shall be considered
at the time of True up subject to Prudence check.
2.101 The Commission has also considered other income of MPPMCL for FY 2023-24 as per the
Petitioners submission. Accordingly, the net MPPMCL cost admitted in this Order is surplus
income for the FY 2023-24. Further, the expenses related to power purchase, if any, incurred
by MPPMCL would be appropriately considered at the time of truing up for FY 2023-24,
after prudence check.
2.102 MPPMCL Cost/ Income admitted by the Commission for FY 2023-24 has been shown in the
table below:
Table 37: MPPMCL Costs/ Income admitted by the Commission for FY 2023-24 (Rs. Crore)
Sr. No.
Particulars
FY 2023-24
1
Depreciation and Amortization
8.49
2
Employee Expenses
70.22
3
R&M Expenses
3.37
4
A&G Expenses
29.64
5
Total Expenses
111.71
6
Other Income
117.92
7
Net MPPMCL Cost/ (Income)
(6.21)
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 71
Summary of Power Purchase Cost
Petitioners’ Submission
2.103 Details of total power purchase cost as filed by the Petitioners are given in the table below:
Table 38: Power Purchase Cost as filed by Petitioners for FY 2023-24 (Rs. Crore)
Sr.
No.
Particulars
UoM
East
DISCOM
West
DISCOM
Central
DISCOM
State
A
Ex- Bus Net Power Purchase Cost excluding Transmission Charges (Inter, Intra & SLDC) etc.
I
Quantum
MUs
24,439
34,585
29,332
88,356
Ii
Fixed Cost
Rs Crores
3,324
4,704
3,989
12,017
Iii
Variable Cost
Rs Crores
5,423
7,675
6,509
19,607
Iv
MPPMCL Cost
Rs Crores
103
146
124
372
V
Total Cost
Rs Crores
8,850
12,524
10,622
31,996
Vi
Average Cost
Rs./kWh
3.62
3.62
3.62
3.62
B
Power Purchase Cost at State Boundary
I
Quantum
MUs
24,020
33,993
28,830
86,843
Ii
Fixed Cost
Rs Crores
4,161
5,888
4,994
15,042
Iii
Variable Cost
Rs Crores
5,423
7,675
6,509
19,607
Iv
MPPMCL Cost
Rs Crores
103
146
124
372
V
Total Cost
Rs Crores
9,687
13,708
11,627
35,022
Vi
Average Cost
Rs./kWh
4.03
4.03
4.03
4.03
C
Power Purchase Cost at Discom Boundary
I
Quantum
MUs
23,388
33,099
28,071
84,559
Ii
Fixed Cost including Transmission
Charges
Rs Crores
5,449
7,432
6,496
19,378
Iii
Variable Cost
Rs Crores
5,423
7,675
6,509
19,607
Iv
MPPMCL Cost
Rs Crores
103
146
124
372
V
Total Cost
Rs Crores
10,976
15,252
13,129
39,357
Vi
Average Cost
Rs./kWh
4.69
4.61
4.68
4.65
Commission’s Analysis
2.104 The total power purchase cost as admitted by the Commission for FY 2023-24 is summarized
in the following table:
Table 39 : Total Power Purchase cost admitted for FY 2023-24 (Rs. Crore)
Sr.
No.
Particulars
UoM
FY 2023-24
A
Fixed Charges
Rs. Crore
11,841.82
B
Energy Charge including additional cost of RPO compliance
Rs. Crore
21,590.24
C
MPPMCL Cost/ (Income)
Rs. Crore
(6.21)
D
Less: Saving from Sale of Surplus Power
Rs. Crore
(806.49)
E
Power Purchase Cost
Rs. Crore
32,619.37
F
Inter State Transmission Charges (PGCIL)
Rs. Crore
3,025.47
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 72
Sr.
No.
Particulars
UoM
FY 2023-24
G
Intra-State Transmission Charges including SLDC Charges
Rs. Crore
4,339.45
H
Net Power Purchase Cost including Transmission Charges
Rs. Crore
39,984.29
I
Ex-Bus Energy Requirement
Mus
89,948.62
J
Power Purchase Rate at Ex-Bus (J = E/I*10)
Rs/Unit
3.63
K
Input at G-T interface
MUs
87,624.68
L
Power Purchase Rate at State Periphery (L=(E+F)/K*10)
Rs/Unit
4.07
M
Input at T-D interface
MUs
85,320.15
N
Power Purchase Rate at DISCOMs Periphery (N=H/M*10)
Rs/Unit
4.69
O
Total Sales
MUs
72,136.47
P
Power Purchase Per Unit Sales (P=H/O*10)
Rs/Unit
5.54
Capital Expenditure Plans/ Capitalization of Assets
Petitioners Submission
Investments
2.105 The Petitioners submitted that for strengthening of the system and reduction of Distribution
losses, all the three DISCOMs of the State are undertaking various projects in the forthcoming
years. The focus is on creation of new 33/11 kV S/s, bifurcation of overloaded 33 kV feeders,
feeder bifurcation of agricultural feeder at 11 kV level, Addl. / Aug of PTRs, Installation of
DTRs, conversion of bare LT line into AB Cables and replacement of service lines etc.
2.106 The overall distribution loss of the system is a mix of technical and commercial losses. The
technical losses are mainly due to comparatively inadequate infrastructure, which needs
strengthening, renovation and upgradation of the capacity of lines, sub-stations and associated
infrastructures. The commercial losses are mainly due to commercial parameters like theft &
pilferage of energy, presence of prominent nos. of stop & defective meters in the system,
inadequate meter reading system etc. which can also be reduced to a large extent by re-
engineering of the system which requires capital investment and directed efforts. DISCOMs
are working on both the issues regularly, which have resulted in reduction in Distribution
losses considerably over the past years, but these reductions are not up to the normative loss
levels which are more stringent at this level.
2.107 Further, with the aim to provide 24x7 uninterrupted, quality, reliable and affordable power
supply, Government of India has launched Revamped Distribution Sector Scheme (RDSS),
on 20
th
July 2021 for supporting DISCOMs to undertake reforms and improve performance
in a time bound manner. DISCOMs have participated in the RDSS Scheme. The Revamped
Distribution Sector Scheme has the following parts:
Part A – Metering & Distribution Infrastructure Works:
2.108 Facilitating in installing prepaid smart meters for all consumers along with associated AMI,
communicable meters for DTs & Feeders, ICT including Artificial Intelligence (AI), Machine
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 73
Learning (ML), etc. based solutions for power Sector and a unified billing and collection
system;
2.109 Distribution infrastructure works as required for strengthening and modernizing the system
as well as measures for loss reduction. The infrastructure strengthening works will include
separation of agriculture feeders to enable implementation of the KUSUM scheme, Aerial
Bunch cables and HVDS for loss reduction, replacement of HT/LT lines as required,
construction of new/ upgradation of substations, SCADA and DMS system etc. Each
DISCOM/ State will draw up the scheme according to its requirement with the end objective
of reducing losses and ensuring 24 x 7 supply.
Part B - Training & Capacity Building and other Enabling & Supporting Activities:
2.110 Supporting and enabling components, such as Nodal Agency fee, enabling components of
MoP (communication plan, publicity, consumer awareness, consumer survey and other
associated measures such as third-party evaluation etc.), up-gradation of Smart Grid
Knowledge Centre, training and capacity building, awards and recognitions etc
2.111 Further, as regard to Smart Metering under RDSS, the Petitioners would like to submit that
the implementation of the same has been planned to be undertaken in a phased manner, i.e.,
in Phase I and II as per RDSS guidelines. The expected completion period for Phase-1 is
December 2023 and that of Phase II is March 2025 as per RDSS guidelines. The Government
of India as approved the DISCOMs plan under Smart Metering according to which total 34.72
Lakhs smart meters will be installed by all three DISCOMs under Phase-1 of the scheme,
covering Consumer meter, DTRs meters and feeder meters. Further, as per 5
th
Monitoring
committee meeting of the RDSS held on 10
th
February 2022, it was instructed that all DTRs
are to be metered by March 2023. Accordingly, a total of 3.20 Lakhs DTRs which earlier was
planned to be covered under Phase-2 of the scheme are clubbed with phase-1 of the scheme.
Considering both, Smart Meters of Phase-1 and DTRs of Phase-2, the DISCOMs have to
install approximate 38 Lakhs Smart Meters under Phase-1 of the scheme.
2.112 Further, the Petitioners submitted that they have already issued bids/awarded work for
installation of 23.20 Lakhs Smart Meters (Central DISCOM- 9.58 Lakhs, West DISCOM-
3.79 Lakhs, East DISCOM-9.83 Lakhs) with the financial support from KfW Development
Bank. Further, the bids were issued by all three DISCOMs in December 2021. As per bid
conditions, bids would be opened sequentially starting from Central DISCOM, then West
DISCOM then East DISCOM, as there is a condition that once a work awarded to any agency
in one DISCOMs that agency will not participate in next bids of DISCOMs.
2.113 The Petitioners further submitted that as per bid condition, the Central DISCOM bid was to
open first, however, due to low participation of bidders in Central DISCOM bid, the bid was
cancelled, and fresh bid was issued. Due to this change, the next bid, which was in sequence,
i.e., West DISCOMs bid was opened, and work was awarded to M/s BCISTs in July, 2022.
Further, next bid for East DISCOM was opened and work was awarded to M/s Monte Carlo
in November 2022. The bid of Central DISCOM is opened in November 2022 and the same
is under evaluation. Therefore, due to above events, the Smart Metering plan mainly for
Central DISCOM has been deferred.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 74
2.114 Further, the Petitioners submitted that in order to meet the target of RDSS Phase-1, DISCOMs
have to issue bids for approximately 15 Lakhs Smart meters. The bids shall be issued using
Standard Bidding Document (SBD) issued by REC for RDSS scheme. DISCOMs have
requested to REC to allow certain deviations in Smart Metering SBD, the response of REC
on those deviations are still awaited. Once, approved by REC the bids will be issued by
DISCOMs. The Petitioners further submitted that the due to low participation and pending
deviation of REC bids, the CAPEX as estimated to be incurred during FY 2022-23 as well as
for FY 2023-24 has been deferred. Due to this reason, there is downward revision in CAPEX
under Smart Metering.
2.115 Further, the bids of West and East DISCOMs have been opened and awarded, so the rates for
Meters have been disclosed (as quoted by the bidders in recent awarded work). The same rates
have been considered by the Petitioners while estimating the revised CAPEX for FY 2023-
24. However, for Central DISCOM, since the no bid is awarded, the rates are not yet disclosed.
Therefore, the rates as discovered under East DISCOM bid has been considered for Central
DISCOMs CAPEX estimation for Smart Metering as the area and number of meters in East
DISCOMs and Central DISCOMs bids are similar. The scheme wise summary of capital
expenditure of the three DISCOMs for FY 2023-24 as filed are indicated below:-
Table 40: Capital Expenditure Plan for FY 2023-24 (Rs. Crore)
Name of Scheme
East
DISCOM
West
DISCOM
Central
DISCOM
Government schemes (ST(N), TSP, SCSP)
70
219
184
Supervision
-
-
194
Capital store and spares
-
-
28
Smart Meterization
297
306
285
Loss Reduction
1,105
1,209
1,304
SSTD & Modernization
749
-
423
Total
2,221
1,734
2,419
Capitalization and CWIP
2.116 DISCOM-wise capitalization plan and the status of Capital Works in Progress (CWIP) as filed
by the Petitioners for FY 2023-24 are indicated below:
Table 41 : DISCOM-wise proposed capitalization and bifurcation of CWIP (Rs. Crore)
Sr.
No.
Particulars
East
DISCOM
West
DISCOM
Central
DISCOM
State
1
Opening Balance of CWIP
2,342
3,342
2,517
8,202
2
Fresh Investment during the year
2,221
1,734
2,419
6,374
3
Total Capitalisation during the year
1,406
1,151
1,417
3,974
4
Closing Balance of CWIP
3,157
3,926
3,520
10,602
Commission’s Analysis on Asset Capitalization
2.117 The DISCOMs need to obtain appropriate approval timely for their capital expenditure in
accordance with the guidelines for capital expenditure by licensees under the provisions of
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 75
Regulation 10.3 of MPERC [The Conditions of Distribution License for Distribution Licensee
(including Deemed Licensee)], Regulations 2004, by submitting a detailed capital investment
plan, financing plan and physical targets against various schemes for meeting the requirement
of load growth, reduction in distribution losses, improvement in quality and reliability of
supply, metering, etc.
2.118 The capital investment plan should show separately ongoing projects that will spill over in
the year under review and new projects (along with justification) that would commence during
the tariff Control Period and would be completed within or beyond the tariff Control period.
The Commission realises importance of adequate capital expenditure for upkeep of the
network in an efficient manner.
2.119 The Commission vide order dated 30
th
December, 2022 has accorded in principle approval to
the proposed Capex plan for all three DISCOMs for the Period of FY 2022-23 to FY 2025-
26 which includes RDSS scheme. However, the Petitioners in the Petition submitted that due
to low participation and pending deviation of REC bids, the estimated capital expenditure
plan to be incurred during FY 2022-23 as well as for FY 2023-24 has been deferred by the
Petitioners. Therefore, the Commission finds it appropriate to consider the capitalisation plan
as submitted by the Petitioners on provisional basis as there shall be downward revision of
capital expenditure and capitalisation under Smart Metering RDSS scheme. The Commission
will carry out prudence check of actual capitalisation at the time of true up subject to
achievement of physical and financial of targets approved by the Commission in respective
schemes based on the outcome of the final approved capex order for FY 2023-24.
Accordingly, the capitalisation plan provisionally considered by the Commission for the FY
2023-24 is shown in the table below:
Table 42: Projected Asset Capitalization considered by the Commission for FY 2023-24 (Rs. Crore)
DISCOM
FY 2023-24
East DISCOM
1,406.34
West DISCOM
1,150.55
Central DISCOM
1,416.80
State
3,973.69
Operations and Maintenance Expenses
Petitioners’ Submission
2.120 Operation and Maintenance (O&M) expenses have been calculated for FY 2023-24 on the
basis of Regulation 36 of the MPERC (Terms and Conditions for Determination of Tariff for
Supply and Wheeling of Electricity and Methods and Principles for Fixation of Charges)
Regulations, 2021.
2.121 The Petitioners submitted that the audited expenses of FY 2021-22 are available. Further,
escalation rate of FY 2021-22 is also available. Hence, in order to have realistic projection
capturing the true inflation, it is necessary that the actual expenses being incurred by the
Licensees during FY 2021-22 are taken into account. Otherwise the actual expenses of FY
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 76
2023-24 at the time of True-up of FY 2023-24 would appear higher than the approved norms.
Therefore, there is need to revise the base year and rework the expenditure for FY 2023-24.
2.122 Further, the Petitioners submitted that the revised base year has been considered as the year
ending 31
st
March 2023 instead of the year ending 31
st
March 2022 as specified in Regulation
36.2 of MYT Regulations, 2021. The normative Employee expenses and A&G expenses for
the base year has been arrived based on the audited expenses of past three financial years, i.e.,
from FY 2019-20 to FY 2021-22 excluding abnormal expenses, if any. The average of past
three years’ audited expenses has been calculated which is considered as normative Employee
expenses and A&G expenses for the year ended on 31
st
March, 2022, which in turn is
escalated with revised escalation rate to arrive at the normative expenses for the base year
ending 31
st
March, 2023. The base year expenses so calculated are then escalated to arrive at
normative Employee expenses and A&G expenses for FY 2023-24.
2.123 The Petitioners submitted that the escalation rate for projections has been considered in line
with the methodology specified by the Commission in the Regulations. The escalation rate
considered for calculating the normative expenses of FY 2021-22 has been derived as 4.24%
which is based on the average yearly inflation of past five years, i.e, from FY 2016-17 to FY
2020-21 with 30% and 70% weightage to WPI and CPI, respectively. Similarly, the revised
escalation rate for FY 2022-23 has been worked out as 5.06% as shown in the following
Table:
Table 43: Escalation Rate for FY 2021-22 and FY 2022-23 (%)
Year
Yearly
WPI
WPI
Inflation
Yearly
CPI
CPI
Inflation
FY 2016-17
111.62
1.73%
275.92
4.12%
FY 2017-18
114.88
2.92%
284.42
3.08%
FY 2018-19
119.79
4.28%
299.92
5.45%
FY 2019-20
121.80
1.68%
322.50
7.53%
FY 2020-21
123.38
1.29%
338.69
5.02%
FY 2021-22
139.41
13.00%
356.06
5.13%
Average from FY17 to FY21
2.38%
5.04%
Average from FY18 to FY22
4.63%
5.24%
Weightage
30%
70%
Escalation rate for FY 2021-22 (2.38%*30%+5.04%*70%)
4.24%
Escalation rate for FY 2022-23 (4.63%*30%+5.24%*70%)
5.06%
Employee Expenses
2.124 The Petitioners submitted that various head under employee cost have been escalated based
on the aforementioned escalation rate except for Dearness Allowances (D.A.). Further,
Petitioners submitted that they have not considered any provisions made towards terminal
benefit during the past three audited years in their normative Employee expenses calculations
for ensuing years. However, they have considered Rs.70 Crore each as a provision towards
terminal benefit trust fund in line with the Commission’s past Orders. As regard to D.A.,
which is linked to basic salary of Employees, Petitioners have considered latest available
actual rate for FY 2022-23 in line with the order and circular issued by the Finance
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 77
Department, Government of Madhya Pradesh. from FY 2022-23 onwards, Petitioners have
considered marginal quarterly addition of 4% over previous quarters’ D.A. rate as shown
below:-
Table 44: Dearness Allowance Considered (%)
Particulars (As per 7th Pay)
FY 2023-24
DA as percentage of Basic for first quarter - Apr to June
38%
DA as percentage of Basic for 2nd and 3rd quarter - July to Dec
42%
DA as percentage of Basic for 4th quarter - Jan to March
46%
2.125 Petitioners further submitted that during past three financial years, i.e., from FY 2019-20 to
FY 2020-21, they have paid actual 7
th
pay arrears to their employees which is not reflected in
the respective years’ audited account since, the payment were made out of the provision
accounted in FY 2017-18. Therefore, in order to reflect the impact of 7
th
pay revision in
normative expenses of ensuing years, the Petitioners have considered the actual payment
made against the 7
th
pay in its calculations.
2.126 Based on the above, the Employee expense for the ensuing years has been calculated. Further,
any variation against the normative Employee expenses as worked out above and actual
expenses for the respective period shall be claimed at the time of final true-up of respective
year.
A&G Expenses
2.127 The A&G expenses have been projected by Petitioners in line with the MPERC (Terms and
Conditions for Determination of Tariff for Supply and Wheeling of Electricity and Methods
and Principles for Fixation of Charges) Regulations, 2021. Further, for MPERC fees under
A&G expenses, the Petitioners have projected the same considering Rs. 200 for each one
Million Units of energy input into the distribution system in line with the “Madhya Pradesh
Electricity Regulatory Commission (Fees, Fines and Charges) (Revision-I) (First
Amendment) Regulations, 2010.
R&M Expenses
2.128 The Petitioners submitted that they have projected R&M expenses by applying the rate of
2.30% of the opening Gross Block Assets (GFA) of the year as per Regulation 36.4 of MYT
Regulations, 2021.
Additional Operational Expenditure (OPEX) Cost
2.129 Under part A of RDSS scheme, Prepaid Smart metering for consumers, and system metering
at feeder and distribution transformer level with communicating feature along with associated
Advanced Metering Infrastructure (AMI) will be done in TOTEX mode (CAPEX + OPEX)
through PPP, to facilitate reduction of Distribution losses and enable automatic measurement
of energy flows and energy accounting as well as auditing. For prepaid smart metering under
the scheme, 15% of the total cost will be provided by the Government of India and an
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 78
additional incentive of 7.5% will be provided for prepaid smart metering within the target
time frame of the first phase, i.e., December 2023. The expenditure on billing module, data
management, data analysis and other works will be funded 100% by the Government of India.
As per the guidelines issued by Ministry of Power, Government of India for Revamped
Schemes, the funding shall be available to DISCOMs if the scheme is being implemented in
TOTEX mode.
2.130 Accordingly, DISCOMs have planned to implement the smart meterization through PPP in
TOTEX mode. Under this, only partial capex will be paid upfront by DISCOMs, and balance
shall be paid through annuity during next 10 years period of operations under OPEX.
However, due to uncontrollable situation, the smart metering plan has been deferred.
Therefore, the Petitioners have projected downward revision in CAPEX particularly for Smart
Metering during FY 2023-24 and there is a downward revision in OPEX part too. The
Petitioners have re-estimated the OPEX portion for FY 2023-24 which as follows:-
Table 45: Additional OPEX submitted by the Petitioners (Rs Crore)
Particular
East
DISCOM
West
DISCOM
Central
DISCOM
State
Additional OPEX Expenses
16.98
19.73
15.25
51.96
2.131 The Petitioners further submitted that the estimation of the TOTEX and hence, OPEX cost
claimed by Petitioner is based on the estimation and selection of vendor, award of contract
and other factors. Such expense being specific in nature shall be subjected to true-up for
respective years. Further, the aforesaid expenses shall be over and above normative O&M
expense of respective year.
2.132 Summary of claims of the Petitioners with respect to O&M Expenses is shown in the table
below:
Table 46: O&M Expenses Claimed by the Petitioners for FY 2023-24 (Rs. Crore)
Sr. No.
Particular
East
DISCOM
West
DISCOM
Central
DISCOM
State
1
Employee Expenses (including
arrears, DA and others)
1.442.60
1.421.58
1,326.22
4,190.40
2
A&G Expenses
129.12
145.43
134.29
408.84
3
R&M Expenses
318.61
225.29
325.54
869.43
4
Additional OPEX Expenses
16.98
19.73
15.25
51.96
5
Total O&M Expenses
1,907.31
1,812.03
1,801.31
5,520.64
Commission’s Analysis on O&M Expenses
2.133 Regulation 36 of the MPERC (Terms and Conditions for Determination of Tariff for Supply
and Wheeling of Electricity and Methods and Principles for Fixation of Charges) Regulations,
2021 specify the methodology for computation of O&M Expenses of the DISCOMs. These
expenses comprise Employee expenses, Repair and Maintenance (R&M) expenses and
Administrative & General (A&G) expenses. The relevant extract for the Regulation is
reproduced below:
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 79
“36.2. The Employee expenses and Administrative and General expenses shall be derived on
the basis of the average of the actual expenses for the period from FY 2018-19 to FY 2020-
21, excluding abnormal expenses, if any, subject to prudence check by the Commission:
Provided that the average of such expenses shall be considered as expenses for the
Year ended 31 March, 2020, and shall be escalated at the respective escalation rate for FY
2020-21 and FY 2021-22, to arrive at the expenses for the base year ending 31 March, 2022:
Provided further that the escalation rate for FY 2020-21 and FY 2021-22 shall be
computed by considering 30% weight age to the average yearly inflation derived based on
the monthly Wholesale Price Index of the respective past five financial years as per the Office
of Economic Advisor of Government of India and 70% weightage to the average yearly
inflation derived based on the monthly Consumer Price Index for Industrial Workers (all-
India) of the respective past five financial years as per the Labour Bureau, Government of
India.
36.3. The Employee expenses and Administrative and General expenses for each subsequent
year shall be determined by escalating these Base Year expenses of FY 2021-22 by an inflation
factor with 30% weight-age to the average yearly inflation derived based on the monthly
Wholesale Price Index of the respective past five financial years as per the Office of Economic
Advisor of Government of India and 70% weight-age to the average yearly inflation derived
based on the monthly Consumer Price Index for Industrial Workers (all-India) of the past five
financial years as per the Labour Bureau, Government of India, to arrive at the permissible
expenses for each year of the Control Period.
“36.4. The R and M Expenses shall be allowed on the opening GFA of the financial year @
2.3% for East Discom, @ 2.3% for West Discom, @ 2.3% for Central Discom, and @ 5% for
SEZ Pithampur. Further, the DISCOMs shall be eligible for additional R and M Expenses of
0.50%, if the Licensee is able to achieve the performance standards targets specified by the
Commission in MPERC (Distribution Performance Standards) (Revision-II) Regulations,
2012 and its amendment thereof. Further, the DISCOMs shall also be eligible for additional
R&M Expenses of 0.50%, if the Licensee is able to achieve Distribution Loss target specified
in Regulation 26.1 of these Regulations or is also to achieve at least 3% reduction in losses
as compared to previous year.”
2.134 The Commission has computed the O&M expenses considering the methodology specified in
the aforesaid Regulation. For approval of Employee Expenses for the FY 2023-24, following
approach has been adopted:
• The average of past years’ actual audited employee expenses from FY 2019-20 to FY
2021-22 has been considered for deriving normative Employee Expenses for FY
2020-21 and then escalated with escalation rate of FY 2021-22 to arrive at the base
year i.e FY 2021-22 .
• The base year expenses so calculated has been escalated twice to arrive at normative
Employee expenses for FY 2023-24.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 80
2.135 The escalation rate considered for calculating the normative expenses of FY 2021-22 has been
derived based on the average yearly inflation of past five years, i.e., from FY 2016-17 to FY
2020-21 with 30% and 70% weightage to WPI and CPI, respectively. Accordingly, based on
the same, the Commission have arrived at escalation rate of 4.24% for FY 2021-22. Similarly,
the escalation rate for FY 2022-23 has been worked out as 5.06% as shown in the table below:-
Table 47: Escalation Rate admitted for FY 2021-22 and FY 2022-23 (%)
Year
Yearly WPI
WPI Inflation
Yearly CPI
CPI Inflation
FY 2016-17
111.62
1.73%
275.92
4.12%
FY 2017-18
114.88
2.92%
284.42
3.08%
FY 2018-19
119.79
4.28%
299.92
5.45%
FY 2019-20
121.80
1.68%
322.50
7.53%
FY 2020-21
123.38
1.29%
338.69
5.02%
FY 2021-22
139.41
13.00%
356.06
5.13%
Average from FY17 to FY21
2.38%
5.04%
Average from FY18 to FY22
4.63%
5.24%
Weightage
30%
70%
Escalation rate for FY 2021-22 (2.38%*30%+5.04%*70%)
4.24%
Escalation rate for FY 2022-23 (4.63%*30%+5.24%*70%)
5.06%
2.136 The Commission has considered increase in DA by 4% every quarter for FY 2023-24, as
projected by the Petitioners
2.137 With regard to claim towards 7
th
pay commission arrears, the Commission considered it
appropriate that the same shall be considered at the time of true up based on actuals.
2.138 It has been noted that various stakeholders have been demanding contribution towards fund
for the Terminal Benefit (Pension, Gratuity and Leave Encashment) Trust as per Provision
3(6) of the MPERC (Terms and Conditions for allowing pension and terminal benefits
liabilities of personnel of Board and successor entities) Regulations, 2012(G-38 of 2012). The
extract of the same is shown below:
“3(6) The liabilities in regard to the contribution to be made under sub-clause 2(iii) above
shall be allowed in the tariff of respective Successor Entities in the relevant year limited to
the extent to be decided by the Commission in the relevant tariff order...”
2.139 Considering the above, the Commission had allowed Rs. 1,170 Crore in Tariff Orders for FY
2017-18 to FY 2022-23 towards the Pension and Terminal Benefit Trust Fund (liabilities
provision), which was to be contributed by the DISCOMs to the Registered Terminal Benefits
Trust. Further, in a separate proceeding the Commission has directed the Petitioners to create
an escrow account and deposit the amount allowed in the previous years towards terminal
benefit trust fund. The Commission in this order in line with the approach followed in
previous orders, has considered an amount of Rs. 210 Crore (Rs 70 Cr for each DISCOM) for
the Pension and Terminal Benefit Trust Fund (liabilities provision), which is to be contributed
by the DISCOMs for FY 2023-24.
2.140 Based on the methodology adopted for projection of Employee Expenses for the FY 2023-24,
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 81
A&G Expenses including other expenses have also been projected. With regard to MPERC
Fees, the Commission has projected it as per the provision of MPERC (Fees, Fines and
Charges) (Revision-I) (First Amendment) Regulations, 2010 and amendments.
2.141 With regard to R&M Expenses, the Commission has considered 2.30% of opening GFA
towards base R&M expenses for FY 2023-24 in accordance with Regulation 36.4 of the MYT
Regulations, 2021.
2.142 With regard to approval of additional O&M expense towards Part A of RDSS, the
Commission opines that the O&M expenses allowable as per the Regulations is only towards
existing assets and assets to be created during the FY 2023-24. However, as the proposed
expenditure under Part A of the RDSS is in TOTEX (CAPEX + OPEX) mode, OPEX portion
of the expenditure will not be reflected as part of GFA of the DISCOMs. Therefore, the said
expenditure towards O&M expenses is required to be allowed over and above the O&M
expenses allowed as per the methodology specified in the Regulations. Therefore, the
Commission has considered the Petitioners claim towards additional operational expenditure
(OPEX) cost towards Part A of RDSS provisionally subject to actuals at the time of true up
of FY 2023-24.
2.143 Further the Commission has projected the O&M Expenses capitalisation for FY 2023-24
considering capitalisation percentage of 2.74%, 1.89% and 2.10% for East, West and Central
DISCOM respectively during FY 2021-22.
2.144 Accordingly, the admitted Operation and Maintenance Expenses for FY 2023-24 is shown in
the table below:
Table 48: Operation and Maintenance Expenses admitted for FY 2023-24 (Rs. Crore)
Particulars
East
DISCOM
West
DISCOM
Central
DISCOM
State
Opening GFA
12,939.25
9,753.68
14,153.89
36,846.82
Repair and Maintenance Expenses @ 2.30%
297.60
224.33
325.54
847.48
Basic Salary
956.87
865.71
824.76
2,647.34
Dearness Allowance
401.88
363.60
346.40
1,111.88
Terminal Benefits
41.00
72.86
57.52
171.38
Employee Expenses
1,399.75
1,302.18
1,228.67
3,930.60
Administrative and General Expenses
126.96
140.60
214.10
481.66
Other Expenses (Rates & Taxes etc.)
1.75
10.22
2.89
14.86
MPERC fees
0.49
0.59
0.69
1.77
Provision for Terminal Benefit Trust Fund
70.00
70.00
70.00
210.00
O&M Expenses Capitalised
(37.86)
(23.22)
(28.59)
(89.66)
Additional Operational Expenditure (RDSS)
16.98
19.73
15.25
51.96
Total O&M Expenses
1,875.67
1,744.43
1,828.55
5,448.66
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 82
Depreciation
Petitioners’ Submission
2.145 The Petitioners submitted that they have computed depreciation as per Regulation 33 of the
MPERC (Terms and Conditions for Determination of Tariff for Supply and Wheeling of
Electricity and Methods and Principles for Fixation of Charges) Regulations, 2021. As per
the said Regulations, depreciation needs to be calculated on value base of the capital cost as
admitted by the Commission. The salvage value of the assets needs to be considered as 10%
of Capital Cost and Depreciation shall be allowed up to maximum of 90% of the Capital Cost
of the Asset.
2.146 Further, the Petitioners submitted that the rate of depreciation has been considered in
accordance with the rate specified by the Commission in its Regulations. In case of existing
projects/schemes Petitioners have verified if the accumulated depreciation has reached 70%.
For the existing projects/schemes where the accumulated depreciation has reached 70% of
asset value, the remaining depreciable value has been spread over the remaining life of the
asset such that the maximum depreciation does not exceed 90%.
2.147 The Petitioners have also submitted that they have claimed depreciation on the net block of
assets excluding consumer contribution and grants, since the Petitioners have not considered
deferred income booked towards the amortization of assets created through consumer
contribution and grants under their Non-Tariff Income.
2.148 The DISCOM wise depreciation claimed by the Petitioners for FY 2023-24 is as shown in the
table below:
Table 49: Depreciation claimed for FY 2023-24 (Rs. Crore)
Particulars
East
DISCOM
West
DISCOM
Central
DISCOM
State
Building
0.88
4.36
4.76
10.00
Hydraulic Works
0.00
0.28
0.34
0.62
Other Civil Works
1.01
0.43
0.13
1.56
Plant & Machinery
104.45
143.86
94.10
342.42
Line Cable Networks etc.
155.37
185.90
147.94
489.22
Vehicles
0.11
0.21
0.00
0.32
Furniture & fixtures
0.00
0.12
0.09
0.21
Office Equipment
9.34
4.93
11.02
25.28
Asset not belonging to Company (RGGVY,
IPDS, Soubhagya, DDUGJY, RRRDS)
24.14
0.00
119.16
143.30
Amortization of Intangible Assets
0.56
5.66
0.35
6.57
Supervision assets
0.00
0.00
0.00
0.00
Capital Stores & Spares
0.00
0.00
17.47
17.47
Total
295.86
345.77
395.36
1036.98
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 83
Commission’s Analysis of Depreciation
2.149 MPERC (Terms and Conditions for Determination of Tariff for Supply and Wheeling of
Electricity and Methods and Principles for Fixation of Charges) Regulations, 2021 specify
the methodology for deriving depreciation. The relevant extract of the Regulations has been
reproduced below: -
“33. Depreciation.-
For the purpose of Tariff, depreciation shall be computed in the following manner:
(a) The value base for the purpose of depreciation shall be the capital cost of the assets
as admitted by the Commission.
(b) 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.
(c) The salvage value of the asset shall be considered as 10% and depreciation shall be
allowed up to maximum of 90% of the capital cost of the asset.
(d) Land other than land held under lease shall not be a depreciable asset and its cost
shall be excluded from the capital cost while computing depreciable value of the asset.
(e) Depreciation shall be calculated annually based on ‘straight line method’ and at
rates specified in Annexure II to these Regulations for the assets of the Distribution
System declared in commercial operation after 31 March, 2022:
Provided that the remaining depreciable value as on 31stMarch of the Year
closing after a period of 15 Years from Date of Commercial Operation shall be spread
over the balance useful life of the assets:
Provided further that the Consumer contribution or capital subsidy/grant, etc., for
asset creation shall be treated as may be notified by the Commission from time to time.
(f) In case of the existing Projects, the balance depreciable value as on 01 April, 2022
shall be worked out by deducting the cumulative depreciation including Advance
against Depreciation as admitted by the Commission up to 31 March, 2022 from the
gross depreciable value of the assets. The rate of Depreciation shall be continued to be
charged at the rate specified in Annexure-II till cumulative depreciation reaches 70%.
Thereafter, the remaining depreciable value shall be spread over the remaining life of
the asset such that the maximum depreciation does not exceed 90 %.
(g) Depreciation shall be chargeable from the first Year of commercial operation. In
case of commercial operation of the asset for part of the Year, depreciation shall be
charged on pro-rata basis.
34. Consumer Contribution, Deposit Work, Grant and Capital Subsidy.-
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 84
34.1. The expenses of the following categories of works carried out by the Distribution
Licensee shall be treated as specified in Regulation34.2:
(a) Works undertaken from funds, partly or fully, provided by the users, which are in
nature of deposit works or consumer contribution works;
(b) Capital works undertaken with grants or capital subsidy received from the State and
Central Governments;
(c) Other works undertaken with funding received without any obligation of repayment
and with no interest costs;
34.2. The expenses on such capital works shall be treated as follows:
……………………….
(e) Provisions related to depreciation, as specified in Regulation 33, shall not be
applicable to the extent of such financial support received.”
2.150 Accordingly, the Commission has considered the asset addition for FY 2023-24 as admitted
in Table 42. Further, consumer contributions, grants and subsidies towards Capital Assets
have been considered as per petitioner submission and subtracted from the GFA for arriving
at net GFA for FY 2023-24. Depreciation has been worked out on the basis of the projected
average net GFA computed considering the opening and closing net GFA of FY 2023-24. In
accordance to the provision of the Regulations, the Commission has not allowed depreciation
towards assets created through consumer contribution and grants.
2.151 The Commission has observed that the Petitioners have submitted Fixed Assets Registers up
to FY 2021-22. However, the same are not found completely in the format specified by the
Commission. It is observed that the Petitioners have not been able to link the individual assets
details with its cost in years prior to FY 2021-22 in Fixed Asset Registers. The Petitioners
have provided the quantity against the assets in cumulative manner, separately.
2.152 During Technical Validation Session held earlier for MYT Order for FY 2022-23 to FY 2026-
27, the Petitioners informed the Commission that from FY 2020-21 onwards, they are keeping
record of the individual assets separately and accordingly, the Petitioners shall be submitting
the Fixed Assets Register in the desired format in true-up petitions. Since, the Fixed Asset
Registers are not as per format specified by the Commission, Petitioners are hereby directed
to submit the Fixed Asset Register as per format specified by the Commission in next Tariff
Petition for FY 2024-25 and true-up petition for FY 2022-23.
2.153 The Commission as per the approach adopted in the MYT Order has allowed 60% of
depreciation amount in this Order and remaining 40% shall be considered at the time of True-
up Petition for FY 2023-24 on submission of Fixed Asset Registers in the specified formats.
2.154 Further, depreciation rates specified in the MYT Regulations, 2021, differ from rates specified
in the MYT Regulations, 2015. As such, the depreciation for FY 2023-24 is required to be
computed in accordance to the rate specified in MYT Regulations, 2021. For computation of
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 85
depreciation as per the rates specified in the MYT Regulations, 2021 class wise GFA is
required for FY 2023-24. As the GFA for FY 2023-24 has been admitted provisionally, the
weighted average depreciation rate (i.e., 4.81%, 4.25% and 4.58% for East, West and Central
DISCOMs, respectively) derived on the basis of Fixed Asset Register submitted by the
DISCOMs for FY 2021-22, has been considered for computation of depreciation for FY 2023-
24.
2.155 The depreciation admitted for FY 2023-24 is given in the following table:
Table 50: Depreciation admitted for FY 2023-24 (Rs. Crore)
Particulars
East
DISCOM
West
DISCOM
Central
DISCOM
State
Opening GFA as on 1
st
April, 2022
7,479.99
4,717.74
9,119.74
21,317.46
Add: Addition during Financial Year
1,001.51
886.50
1,024.89
2,912.91
Less: Consumer Contribution/Grants in Financial Year
469.93
359.32
414.09
1,243.33
Opening GFA as on 1
st
April, 2023
8,011.56
5,244.93
9,730.54
22,987.04
Add: Addition during Financial Year
1,406.34
1,150.55
1,416.80
3,973.69
Less: Consumer Contribution/Grants in Financial Year
726.97
504.20
719.82
1,950.98
Closing GFA as on 31
st
March, 2023
8,690.93
5,891.29
10,427.52
25,009.74
Average GFA
8,351.25
5,568.11
10,079.03
23,998.39
Rate of Depreciation
4.81%
4.25%
4.58%
4.58%
Depreciation
401.69
236.64
461.62
1,099.96
Depreciation withheld (40%)
160.68
94.66
184.65
439.98
Depreciation Admitted
241.02
141.99
276.97
659.98
Interest and Finance Charges
Petitioners’ submission
2.156 Regulation 32 of the MPERC (Terms and Conditions for Determination of Tariff for Supply
and Wheeling of Electricity and Methods and Principles for Fixation of Charges) Regulations,
2021 provides stipulation for calculation of interest and finance charges on loan capital.
2.157 Petitioners have submitted that interest and finance charges on loan capital have been
computed in line with the methodology adopted by the Commission in its previous
Tariff/True-up Orders. The opening debt of FY 2021-22 has been considered in line with the
closing debt as approved by the Commission in its True-up Order of FY 2020-21. The asset
addition to GFA, consumer deposit & grant and actual equity contribution has been
considered as proposed in the True-up Petition of FY 2021-22. The repayment of loan has
been considered equal to depreciation. Accordingly, the closing debt of FY 2021-22 has been
arrived by adding the net GFA considered as funded through debt and subtracting debt
repayment of the respective year. The Closing debt of FY 2021-22 is then considered as
opening debt of FY 2022-23.
2.158 Similarly, opening and closing debt of FY 2023-24 has been arrived by the Petitioners.
However, while doing so the GFA addition, consumer deposit & grant and equity has been
considered as projected in this Petition. Further, 30% of the net asset addition to GFA during
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 86
the year or actual equity infusion as admitted, whichever being less has been considered as
funded through equity. Balance of net asset addition to GFA is considered as having been
funded through debt and added to the total debt in GFA.
2.159 The interest on loan for FY 2023-24 has been calculated by the Petitioners on the normative
average loan of the year by applying the weighted average rate of interest. Further, the
weighted average rate of interest for each DISCOM has been calculated based on the actual
loan portfolio of DISCOMs in line with the Regulations.
2.160 The Petitioners have also considered other finance charges such as Bank Charges,
Commitment Charges, Guarantee/LC Charges etc. based on the actual expenditure incurred
over the previous FY as per audited accounts.
2.161 The DISCOM-wise summary of interest and finance charges as submitted by the Petitioners
is mentioned in the table below:
Table 51: Interest on Project Loan claimed for FY 2023-24 (Rs. Crore)
Particulars
East
DISCOM
West
DISCOM
Central
DISCOM
State
Opening Debt associated with GFA (as per True-up Order)
3,725.57
1,377.16
4,674.25
9,776.99
GFA Addition during the year
1,406.34
1,150.55
1,416.80
3,973.69
Consumer Deposit and Grants utilized during the year
726.97
504.20
719.82
1,950.98
Net GFA Addition during the year
679.37
646.36
696.98
2,022.70
Addition of Equity
38.87
31.35
80.25
150.46
Net GFA considered as funded through debt
640.50
615.01
616.73
1,872.24
Debt repayment during the year
295.86
345.77
395.36
1,036.98
Closing debt associated with GFA
4,070.21
1,646.41
4,895.62
10,612.24
Average debt associated with Loan
3,897.89
1,511.79
4,784.94
10,194.61
Weighted average rate of interest (%) on all loans
7.17%
8.30%
7.13%
7.32%
Interest on Project Loans
279.58
125.41
341.35
746.33
Other Finance cost
2.37
20.04
7.04
29.45
Bank Charges
0.08
9.44
7.04
16.56
Commitment Charges
0.36
10.60
0.00
10.96
Guarantee/LC Charges
1.93
0.00
0.00
1.93
Interest Cost Claimed in Petition
281.95
145.45
348.39
775.78
Commission’s Analysis of Interest and Finance Charges
2.162 Regulation 22 of the MPERC (Terms and Conditions for Determination of Tariff for Supply
and Wheeling of Electricity and Methods and Principles for Fixation of Charges) Regulations,
2021 specifies methodology for computation of debt and equity towards the existing and
admitted capitalisation. The relevant extract of the Regulation is reproduced below:
“22. Debt-equity ratio.-
22.1. For the purpose of determination of tariff, the normative debt-equity ratio of the total
capital employed, after deducting the funding from Consumer Contributions, Deposit Work,
Grant and Capital Subsidy, in completed assets shall be 70:30 subject to Regulation.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 87
22.2. The debt-equity amount arrived in accordance with this Regulation shall be used for
calculation of interest on loan, return on equity, depreciation and foreign exchange rate
variation.
22.2. For a Project declared under commercial operation on or after 01 April, 2022, if the
equity actually deployed is more than 30% of the capital cost, equity in excess of 30% shall
be treated as normative loan:
Provided that where equity actually deployed is less than 30% of the capital cost, the actual
equity shall be considered for determination of Tariff:
Provided further that the equity invested in foreign currency shall be designated in Indian
rupees on the date of each investment.
…
22.3. In case of the Distribution System declared under commercial operation prior to 01
April, 2022, debt-equity ratio allowed by the Commission for determination of Tariff for the
period ending 31 March, 2022 shall be considered.”
2.163 Regulation 32 of the MPERC (Terms and Conditions for Determination of Tariff for Supply
and Wheeling of Electricity and Methods and Principles for Fixation of Charges) Regulations,
2021 specifies methodology for computation of Interest and finance charges on loan. The
relevant extract of the Regulation is reproduced below:
“32. Interest and finance charges on loan capital.-
32.1. The loans arrived at in the manner indicated in Regulation 22 shall be considered as
gross normative loan for calculation of interest on loan.
32.2. The normative loan outstanding as on 01 April, 2022 shall be worked out by deducting
the cumulative repayment as admitted by the Commission up to 31 March, 2022 from the
gross normative loan.
32.3. Notwithstanding any moratorium period availed by the Distribution Licensee, the
repayment of loan shall be considered from the first Year of commercial operation of the
Project and shall be equal to the annual depreciation allowed.
32.4. The rate of interest shall be the weighted average rate of interest calculated on the basis
of the actual loan portfolio at the beginning of each Year applicable to the Project:
Provided that at the time of true-up, the weighted average rate of interest calculated on
the basis of the actual loan portfolio during the concerned year shall be considered as the
rate of interest:
Provided further that if there is no actual loan for a particular Year but normative loan
is still outstanding, the last available weighted average rate of interest shall be considered:
Provided also that if the Distribution System does not have actual loan, then the weighted
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 88
average rate of interest of the Distribution Licensee as a whole shall be considered.
Provided also that if the Distribution Licensee as a whole does not have actual long-
term loan, then the Base Rate as on 1st April of the respective year shall be considered as the
rate of interest for the purpose of allowing the interest on the normative loan.
32.5. The interest on loan shall be calculated on the normative average loan of the Year by
applying the weighted average rate of interest.
32.6. The Distribution Licensee shall make every effort to re-finance the loan as long as it
results in net savings on interest and in that event the costs associated with such re-financing
shall be borne by the consumers and the net savings shall be shared between consumers and
Distribution Licensee in ratio 2:1.
32.7. The changes to the terms and conditions of the loans shall be reflected from the date of
such re-financing.
32.8. Interest charges on security deposits with the Licensee shall be considered at the rate
specified by the Commission from time to time.”
2.164 Based on the above, the Commission has considered interest and finance charges as pass
through in the ARR only for those loans, for which the associated capital works have been
completed and assets have been put to use.
2.165 Interest on loan for works in progress is considered as interest during construction (IDC),
which shall be capitalized and added to the project cost at the time of asset capitalization.
Therefore, such IDC cost has not been considered as pass through in the ARR. The underlying
principle for considering the capitalization instead of capital expenditure incurred during the
year is that the consumer should bear the interest cost related to only those assets, which are
put to use. The asset under construction is not being used by the consumers. Interest cost
incurred during the course of construction of assets becomes a part of CWIP and therefore, is
not admitted as pass through.
2.166 Regulation 22 of the MYT Regulations, 2021 provides that the debt-equity ratio of the capital
employed for determination of tariff shall be 70:30. However, in case the actual equity is less
than 30%, actual equity infused is to be considered and wherever the actual equity infused
exceeds 30%, equity in excess of 30% shall be treated as normative loan.
2.167 Further, Regulation 31 of the MYT Regulations, 2021 provides that only such paid up share
capital is to be reckoned for computation of Return on Equity, which has been actually utilised
for meeting capital expenditure and forms a part of the approved financial package. The
approach adopted by the Commission for computation of interest cost for FY 2023-24 is as
follows:
a) Opening loan for FY 2022-23 has been considered same as the closing loan admitted in
true up of FY 2021-22. Thereafter addition in FY 2022-23 has been considered as per the
Petitioners submission. The closing loan thus arrived for FY 2022-23 has been considered
opening loan for FY 2023-24.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 89
b) Net asset addition to GFA during the year is arrived by subtracting the consumer
contribution/Grants received from total asset addition to GFA.
c) 30% of the net asset addition to GFA during the year or actual equity infusion as admitted,
whichever being less has been considered as funded through equity. Balance of net asset
addition to GFA is considered as having been funded through debt and added to the total
debt in GFA.
d) Debt repayments have then been subtracted from the total debt identified with completed
assets as computed from the above. The repayment for the year has been considered equal
to the depreciation allowed for that year.
e) The Commission has workout the weighted average rate of interest based on the
submissions made by the Petitioners in Format 3a. As per the MYT Regulations, 2021,
the Commission has considered the weighted average rate of interest computed based on
the actual outstanding and new loan to be taken during the FY 2023-24.
f) Other Finance costs for FY 2023-24 have been admitted considering the actual
percentage of actual finance cost to average loan in FY 2020-21 and FY 2021-22, the
average of FY 2020-21 and FY 2021-22 workout to 0.11%, 0.94% and 0.08% for East,
West and Central DISCOM, respectively.
2.168 Based on the above, the Interest and Finance charges admitted for FY 2023-24 are shown in
the table below:
Table 52: Interest and finance charges admitted for FY 2023-24 (Rs. Crore)
Particulars
East
DISCOM
West
DISCOM
Central
DISCOM
State
Opening Debt associated with GFA as on 1
st
April,2022
3,407.39
1,272.09
4,648.00
9,327.48
Addition to GFA during the year
531.58
527.19
610.81
1,669.57
70% of addition to net GFA considered as funded through
Loan net of Consumer Contribution
479.04
474.64
527.21
1,480.89
Debt repayment during the year
223.54
127.02
259.00
609.57
Opening Debt associated with GFA as on 1
st
April,2023
3,662.89
1,619.71
4,916.20
10,198.80
Addition to GFA during the year
679.37
646.36
696.98
2,022.70
70% of addition to net GFA considered as funded through
Loan net of Consumer Contribution
640.50
615.01
616.73
1,872.24
Debt repayment during the year
241.02
141.99
276.97
659.98
Closing debt associated with GFA as on 31
st
March,2023
4,062.37
2,092.73
5,255.96
11,411.06
Average debt
3,862.63
1,856.22
5,086.08
10,804.93
Weighted average rate of interest (%) on all loans as per
Petitioner
7.17%
7.08%
7.13%
7.14%
Interest on Project Loans
276.95
131.42
362.64
771.01
Other Finance cost
4.15
17.52
4.27
25.94
Interest cost admitted on project loans
281.10
148.94
366.90
796.95
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 90
Interest on Working Capital
Petitioners’ Submission
2.169 Regulation 23 of the MPERC (Terms and Conditions for Determination of Tariff for Supply
and Wheeling of Electricity and Methods and Principles for Fixation of Charges) Regulations,
2021 provides the method of calculation of interest on working capital, wherein the total
Working Capital shall consist of expenses towards working capital for the supply activity and
wheeling activity. The said Regulation also stipulates the parameters to be considered for
computation of working capital for wheeling and supply activity.
2.170 Further, as per the Regulation 38, the Rate of interest on working capital shall be equal to the
Base Rate as on 01st April of the relevant year plus 350 basis points. Further, the base rate
shall be one-year Marginal Cost of Funds-based Lending Rate (MCLR) as declared by State
Bank of India from time to time. The SBI MCLR as on 1st April, 2022 is 7%. Accordingly,
the Petitioners have considered the interest rate on working capital as 10.50% (SBI-MCLR
7% plus 350 bps).
2.171 The summary of DISCOMs Wise Interest on Working Capital is mentioned in the table below:
Table 53: Interest on Working Capital claimed for 2023-24 (Rs Crore)
Sr. No.
Particulars
East
DISCOM
West
DISCOM
Central
DISCOM
State
I
Wheeling
A)
1/6th of annual requirement of inventory for 1%
GFA of previous year
18.47
13.06
18.87
50.40
B)
O&M expenses
R&M expenses
318.61
225.29
325.54
869.43
A&G expense
135.69
145.21
134.29
415.19
Employee expenses
1,445.01
1,421.58
1,326.22
4,192.81
B) i)
Total of O&M expenses
1,899.31
1,792.08
1,786.05
5,477.44
B) ii)
1/12th of total
158.28
149.34
148.84
456.45
C)
Receivables
-
-
-
-
C) i)
Annual Revenue from wheeling charges**
-
5.63
-
5.63
C) ii)
Receivables equivalent to 2 months average
billing of wheeling charges
-
0.94
-
0.94
D)
Total Working capital [ A) + B) ii) - C) ii)]
176.75
163.34
167.71
507.79
E)
Rate of Interest *
10.50%
10.50%
10.50%
10.50%
F)
Interest on Working capital (Wheeling)
18.56
17.15
17.61
53.32
II
Retail Supply
A)
1/6th of annual requirement of inventory for
previous year
4.62
3.27
4.72
12.60
B)
Receivables
B) i)
Annual Revenue from Tariff and charges**
13,395
18,727
15,870
47,992
B) ii)
Receivables equivalent to 2 months average
billing
2,233
3,121
2,645
7,999
C)
Power Purchase expenses
7,722
16,897
10,439
35,058
C) i)
1/12th of power purchase expenses
644
1,408
870
2,922
D
Consumer Security Deposit
1,027
2,059
1,568
4,655
E)
Total Working capital (A+B ii) - C i) - D)
566
(343)
566
790
F)
Rate of Interest *
10.50%
10.50%
10.50%
10.50%
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 91
Sr. No.
Particulars
East
DISCOM
West
DISCOM
Central
DISCOM
State
G)
Interest on Working capital (Retail Supply)
59.48
0.00
22.19
81.68
Total Interest on Working Capital (Wheeling
+ Retail Supply)
78.04
17.15
39.80
134.99
Commission’s Analysis of Interest on Working Capital
2.172 Regulations 23 of the MPERC (Terms and Conditions for Determination of Tariff for Supply
and Wheeling of Electricity and Methods and Principles for Fixation of Charges) Regulations,
2021 specifies methodology for computation of Interest on Working Capital. The relevant
extract for the provision has been reproduced below:-
“23.Working capital.-
23.1.Working capital for supply activity of the Licensee shall consist of:
(i)Receivables of two months of average billing reduced by power purchase cost of one
month, consumer security deposit, and any amount paid by the prepaid consumers,
(ii)O&M expenses for one month, and
(iii)Inventory (meters, metering equipment, testing equipment are particularly relevant
in case of supply activity) for 2 months based on annual requirement considered at 1%
of the Gross Fixed Assets for previous year.
23.2.Working capital for wheeling activity of the Licensee shall consist of:
(i)O and M expenses for one month, and
(ii)Inventory (excluding meters, etc., which are considered part of supply activity) for
2 months based on annual requirement considered at 1% of the gross fixed assets for
previous year.
23.3.The norms described above shall be applicable for each year of the Control
Period.
38. Interest charges on working capital.-
Working capital shall be computed as provided in these Regulations and Rate of interest
on working capital shall be equal to the Base Rate as on 1April of the relevant Year
plus 350 basis points. The interest on working capital shall be payable on normative
basis notwithstanding that the Licensee has not taken working capital loan from any
outside agency or has borrowed in excess of the working capital loan computed on
normative basis.”
2.173 Accordingly, the Commission has considered the opening Gross Fixed Asset of FY 2023-24
for computation of Interest on Working Capital for East, West and Central DISCOMs. One
percent of opening Gross Fixed Asset has been pro-rated to two months to work-out the
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 92
inventory requirement for wheeling activity and retail activity. This has been further divided
into wheeling and retail inventory in the ratio of 80:20 as per the practice adopted in previous
Tariff Orders. The average consumer security deposit has been considered which is average
of Opening and Closing of consumer security deposit for FY 2023-24. Values of other
elements of working capital have been recomputed for the expenses admitted by the
Commission in the relevant sections of this order. Further, annual revenue from wheeling
charges has been considered based on average of the actual values as per audited accounts of
FY 2019-20 to FY 2021-22 for FY 2023-24.
2.174 Further, the SBI Base Rate on 1
st
of April, 2022 (MCLR-7% plus 350 basis) stands at 10.50%.
The same has been considered as normative interest rate applicable for working capital loans
to DISCOMs for FY 2023-24. Accordingly, the interest on working capital admitted by the
Commission for wheeling and retail sales activity combined together is shown in the table
below:
Table 54: Interest on Working Capital admitted by the Commission (Rs. Crore)
Sr.
No
Particulars
Months
East
DISCOM
West
DISCOM
Central
DISCOM
State
For wheeling Activity
A)
1/6th of annual requirement of inventory
for previous year
6
15.92
11.82
17.51
45.25
B)
i)
Total of O&M Expenses
1,875.67
1,744.43
1,828.55
5,448.66
B)
ii)
1/12th (1 Months) of total O&M Expenses
156.31
145.37
152.38
454.06
C)
Receivables
C)
i)
Annual Revenue from wheeling charges
0.83
6.47
0.65
7.95
C)
ii)
Receivables equivalent to 2 months average
billing of wheeling charges
6
0.14
1.08
0.11
1.32
D)
Total Working capital (A+B(ii)+C(ii))
172.36
158.27
169.99
500.62
E)
Rate of Interest
10.50%
10.50%
10.50%
10.50%
F)
Interest on Working Capital for
Wheeling Activity
18.10
16.62
17.85
52.57
For Retail Sale Activity
A)
1/6th of annual requirement of inventory
for previous year
6
3.98
2.96
4.38
11.31
B)
Receivables
B)
i)
Annual Revenue from Tariff and charges
13,480.54
19,043.56
16,468.57
48,992.66
B)
ii)
Receivables equivalent to 2 months average
billing (B(i)/6)
2,246.76
3,173.93
2,744.76
8,165.44
C)
Annual Power Purchase expenses
9,163.32
14,743.63
11,737.90
35,644.84
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 93
Sr.
No
Particulars
Months
East
DISCOM
West
DISCOM
Central
DISCOM
State
For wheeling Activity
C)
i)
1/12th (1 Months) of power purchase
expenses (C/12)
763.61
1,228.64
978.16
2,970.40
D
Consumer Security Deposit
1,007.81
2,005.80
1,390.38
4,403.98
E)
Total Working capital (A+B (ii) - C (i) - D)
479.32
(57.55)
380.60
802.37
F)
Rate of Interest
10.50%
10.50%
10.50%
10.50%
G)
Interest on Working capital for Retail
Sale Activity
50.33
(6.04)
39.96
84.25
Summary
For wheeling Activity
18.10
16.62
17.85
52.57
For Retail Sale Activity
50.33
(6.04)
39.96
84.25
Total Interest on working Capital
68.43
10.58
57.81
136.81
Total Interest on working Capital
Admitted
68.43
10.58
57.81
136.81
Interest on Consumer Security Deposit
Petitioners Submission
2.175 Interest on Consumer Security Deposit is payable to the consumers in accordance with
MPERC (Terms and Conditions for Determination of Tariff for Supply and Wheeling of
Electricity and Methods and Principles for Fixation of Charges) Regulations, 2021 and
MPERC Security Deposit Regulations, 2009 and amendment thereof. The Petitioners have
provisionally considered rate on Consumer Security Deposit rate in line with the actual rate
arrived based on the audited accounts.
2.176 The DISCOM-Wise summary of interest on Consumer Security Deposit is mentioned in the
table below:
Table 55: Interest on Consumer Security Deposit claimed by the Petitioners for FY 2023-24 (Rs. Crore)
Particulars
East
DISCOM
West
DISCOM
Central
DISCOM
State
Interest on Consumer Security Deposit
53.19
68.29
58.26
179.73
Commission’s Analysis of Consumer Security Deposit
2.177 The Commission has computed the interest on consumer security deposit as per the norms of
the MYT Regulations, 2021 at RBI latest available Bank Rate of 4.25% and admitted the
same as shown in the table below:
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 94
Table 56: Interest on Consumer Security Deposit (CSD) admitted for FY 2023-24 (Rs. Crore)
DISCOM
FY 2023-24
East DISCOM
42.83
West DISCOM
85.25
Central DISCOM
59.09
State
187.17
Return on Equity (RoE)
Petitioners’ submission
2.178 MYT Regulations, 2021 specifies to allow Return on Equity in two parts, i.e., Base Return on
Equity and Additional Return on Equity linked to actual performance. The rate for base Return
on Equity has been kept at 14% and additional Return of 2% has been linked to performance
which is to be allowed at the time of True-up.
2.179 Regulation 22 of the MYT Regulations, 2021 provides that the debt-equity ratio of the capital
employed for determination of tariff shall be 70:30. However, in case the actual equity is less
than 30%, actual equity infused is to be considered and wherever the actual equity infused
exceeds 30%, equity in excess of 30% shall be treated as normative loan. Accordingly, based
on the above provisions, the Petitioners have worked out Return of Equity for the FY 2023-
23 as follows:
(a) Opening Equity for FY 2022-23 has been considered as the closing equity admitted in
true up of FY 2021-22. Thereafter addition in equity for FY 2022-23 has been considered
as per the Petitioners submission. The closing equity thus arrived for FY 2022-23 has
been considered as opening equity for FY 2023-24.
(b) Net asset addition to GFA during FY 2022-23 and FY 2023-24 of the Control Period is
arrived by subtracting the consumer contribution/Grants from total asset addition to GFA
as projected in this Petition.
(c) 30% of the net asset addition to GFA during the year or actual equity infusion as
proposed, whichever being less has been considered by the Petitioners as funded through
equity.
Table 57: Return on Equity Claimed by the Petitioners for FY 2023-24 (Rs. Crore)
Sr. No.
Particulars
East
DISCOM
West
DISCOM
Central
DISCOM
State
A
Gross Fixed Assets at the beginning of
year (net of consumer contributions)
8,228.98
8,640.48
9,752.17
26,621.63
A1
Opening balance of GFA identified as
funded through equity
1,655.66
1,233.68
1,940.23
4,829.57
B
Proposed capitalization of assets as per
the investment plan (net of consumer
contribution and grant)
679.37
646.36
696.98
2,022.71
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 95
Sr. No.
Particulars
East
DISCOM
West
DISCOM
Central
DISCOM
State
B1
Proportion of capitalized assets funded
out of equity, internal reserves
38.87
31.35
80.25
150.47
B2
Balance Proportion of capitalized assets
funded out of project loans (B - B1)
640.50
615.01
616.73
1,872.24
C1
Normative additional equity (30% of B)
203.81
193.91
209.09
606.81
C2
Normative additional debt (70% of B)
475.56
452.45
487.88
1,415.89
D1
Excess / shortfall of additional equity
over normative (B1-C1)
(164.94)
(162.56)
(128.85)
(456.35)
D2
Excess / shortfall of additional debt over
normative (B2-C2)
164.94
162.56
128.85
456.35
E
Equity eligible for Return (A1+(C1/2))
OR (A1+(B1/2)), whichever is lower
1,675.09
1,249.36
1,980.36
4,904.81
F
Rate of Return in Equity
14.00%
14.00%
14.00%
14.00%
G
Return on Equity (14% on E)
234.51
174.91
277.25
686.67
Commission’s Analysis of Return on Equity
2.180 Regulation 31 of the MPERC (Terms and Conditions for Determination of Tariff for Supply
and Wheeling of Electricity and Methods and Principles for Fixation of Charges) Regulations,
2021 specifies methodology for computation of Return on Equity (RoE). The relevant extract
for the provision has been reproduced below:-
“31. Return on Equity.-
31.1. Return on equity shall be computed in rupee terms, on the paid-up equity capital
determined in accordance with Regulation 22.
31.2. Return on Equity shall be allowed in two parts, i.e., Base Return on Equity and
Additional Return on Equity linked to actual performance.
31.3. Base Return on Equity shall be allowed at the rate of 14%.
31.4. The Additional Return on Equity shall be allowed at the time of true-up subject to
the following:
(a) If the status of metering of rural consumers under the domestic categories is
achieved at the levels specified below, the Additional Return on Equity of 0.75% shall
be allowed:
Year
Metering completed as % of total connections
East
West
Central
FY 2022-23
92%
100%
84%
FY 2023-24
94%
100%
88%
FY 2024-25
96%
100%
92%
FY 2025-26
98%
100%
96%
FY 2026-27
100%
100%
100%
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 96
(b) If the total value of capital investment works capitalized in a year is more than 95%
of the total approved capitalisation towards approved works for that year, the
Additional Return on Equity of 0.75% shall be allowed;
(c) If the actual Repairs and Maintenance expenses in a year is more than 95% of the
approved Repairs and Maintenance expenses for that year, the Additional Return on
Equity of 0.50% shall be allowed.
31.5. Any expenses on payment of Income Tax paid shall be allowed extra on actual
basis on the licensed business of the Distribution Licensee.
31.6. The premium raised by the Licensee while issuing share capital and investment
of internal resources created out of free reserve, if any, 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 and
forms part of the approved financial package. For the purposes of calculation of
computation of return, the portion of free reserves utilized for meeting the capital
expenditure shall be considered from the date the asset created is productively deployed
in the distribution business.”
2.181 As per MYT Regulations, 2021, Return on Equity is allowable in two parts, i.e., Base Return
on Equity of 14% and Additional Return on Equity of 2% subjected to achievement of target
/ performance, which is to be allowed at the time of true-up after prudence check. Therefore,
the Commission in this order has considered base rate of 14% for computation for Return of
Equity for FY 2023-24.
2.182 Regulation 22 of the MYT Regulations, 2021 provides that the debt-equity ratio of the capital
employed for determination of tariff shall be 70:30. However, in case the actual equity is less
than 30%, actual equity infused is to be considered and wherever the actual equity infused
exceeds 30%, equity in excess of 30% shall be treated as normative loan.
2.183 Further, Regulation 31 of the MYT Regulations, 2021 provides that only such paid up share
capital is to be reckoned for computation of Return on Equity, which has been actually utilised
for meeting capital expenditure and forms a part of the approved financial package.
Accordingly, based on the above, the approach adopted by the Commission for computation
of Return of Equity for FY 2023-24 is as follows:
a) Opening Equity for FY 2022-23 has been considered as the closing equity admitted in
true up of FY 2021-22. Thereafter addition in equity for FY 2022-23 has been considered
as per the Petitioners Submission. The closing equity thus arrived for FY 2022-23 has
been considered as opening equity for FY 2023-24.
b) Net asset addition to GFA during each year of the Control Period is arrived by subtracting
the consumer contribution/Grants received from total asset addition to GFA.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 97
c) 30% of the net asset addition to GFA during the year or actual equity infusion as admitted,
whichever being less has been considered as funded through equity.
d) RoE for each year has been computed considering the average equity for the year and
Rate of RoE of 14% as per Regulation 31.
2.184 The total equity identified along with RoE as admitted for FY 2023-24 is shown in the tables
below:
Table 58: Return on Equity admitted for FY 2023-24 (Rs. Crore)
Particulars
East
DISCOM
West
DISCOM
Central
DISCOM
State
Opening Equity identified with GFA as on 1
st
April, 2022
1,581.91
1,163.24
1,806.00
4,551.16
Equity addition admitted during the Year
52.53
52.55
83.60
188.68
Opening Equity identified with GFA as on 1
st
April, 2023
1,634.45
1,215.79
1,889.60
4,739.84
GFA Addition
1,406.34
1,150.55
1,416.80
3,973.69
Consumer Deposit and Grants received
726.97
504.20
719.82
1,950.98
Net GFA Addition
679.37
646.36
696.98
2,022.70
30% of addition to net GFA considered as funded through
equity net of consumer contribution
203.81
193.91
209.09
606.81
Proposed Equity addition during the Year
38.87
31.35
80.25
150.46
Equity addition admitted during the Year
38.87
31.35
80.25
150.46
Closing Equity as on 31
st
March, 2023
1,673.31
1,247.14
1,969.85
4,890.30
Average Equity
1,653.88
1,231.47
1,929.72
4,815.07
RoE @ 14% Admitted
231.54
172.41
270.16
674.11
Other Items of ARR
2.185 Apart from the expense components discussed above, there are certain other items, which
form part of the ARR of the DISCOMs. These include provision for bad debts, and other
(Non-Tariff) Income. These are detailed below:
Bad and doubtful debts
Petitioners’ submission
10.4.1 Regulation 37 of MYT Regulations, 2021 provides the methodology for computation of
Provision for Bad & Doubtful Debts, wherein it is stated that Bad & Doubtful Debts shall be
allowed to the maximum of 1% of the yearly revenue. Accordingly, the Petitioners have
claimed the expenses against bad and doubtful debts is as follows:
Table 59: Provision for Bad and Doubtful Debts Claimed for FY 2023-24 (Rs Crore)
DISCOM
FY 2023-24
East DISCOM
2.00
West DISCOM
2.00
Central DISCOM
2.00
State
6.00
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 98
Commission’s Analysis on Bad and Doubtful debts
2.186 Regulation 37 of the MPERC (Terms and Conditions for Determination of Tariff for Supply
and Wheeling of Electricity and Methods and Principles for Fixation of Charges) Regulations,
2021 specifies methodology for computation of Bad and Doubtful Debts. The relevant extract
of the Regulations is reproduced below:-
“37. Bad and doubtful debts.-
The Licensee shall submit the Draft policy and procedure for identification of bad debts and
writing off the same for the approval of the Commission within three months from the date of
notification of these Regulations. Bad and Doubtful Debts shall be allowed based on bad
debts actually written off in the past (in accordance to the procedure approved by the
Commission) as per the available latest audited Financial Statement to the extent Commission
considers it appropriate and shall be trued up during the true up exercise for the relevant
year subject to a limit of 1% of the yearly revenue”
2.187 The Commission has not considered any provision for Bad and doubtful debt for FY 2023-24
as these shall be allowed based on actual written off. The Commission is of the view that any
expenses against the bad and doubtful debts should be considered only at time of true-up
based on actual bad debt written off after prudence check.
2.188 Further, the Petitioners are directed to submit draft policy and procedure for
identification of bad debts and writing off the same for the approval of the Commission.
Other Income
Petitioners’ submission
2.189 The main components of Non-Tariff Income are Wheeling Charges, Supervision Charges,
Sale of Scrap, income from Trading and Miscellaneous Charges from consumers as per MYT
Regulations, 2021 and as per the “Schedule of Miscellaneous and General Charges” under
MPERC (Details to be furnished and fee payable by licensee or generating company for
determination of tariff and manner of making application) Regulations, 2004 and
amendments thereof. The Petitioners have projected their Other Income & Non-Tariff Income
for FY 2023-24 based on averaging method over various components of other income.
2.190 Petitioners further submitted that they have not considered deferred income i.e., income
booked towards the amortization of assets created through consumer contribution and grants
under their claim of Other Income since, the depreciation is claimed on net block of assets.
Further, in line with the methodology adopted by the Commission in its previous True-up
Order of FY 2019-20, Petitioners have not considered the waived off amount by MPPTCL
towards liability of wheeling charges on DISCOMs in other income. Accordingly, the Other
Income and Non-Tariff Income as filed by the Petitioners are shown in tables below:
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 99
Table 60: Other Income and Non-Tariff Income for FY 2023-24 (Rs Crore)
Particulars
East
DISCOM
West
DISCOM
Central
DISCOM
State
Income from Investment, Fixed & Call Deposits
8.99
33.62
26.70
69.31
Interest on loans and Advances to staff
-
0.09
-
0.09
Other Income from Trading/Sale of scrap
17.88
8.65
9.74
36.27
Interest on Advances to Suppliers / Contractors
-
0.29
-
0.29
Income/Fee/Collection against staff welfare activities
-
0.02
-
0.02
Miscellaneous receipts
76.52
-
41.90
118.42
Wheeling charges
0.92
5.63
0.25
6.80
Supervision charges
17.44
24.78
22.90
65.12
Recovery from theft
7.33
-
-
7.33
Other Charges from Consumers
56.92
-
-
56.92
Utility Charges
-
-
0.77
0.77
Income from renting
-
3.17
-
3.17
Other miscellaneous income
-
126.56
81.05
207.61
Total
186.01
202.80
183.31
572.12
Commission’s Analysis on Other Income
2.191 The Commission has issued MPERC (Recovery of expenses and other charges for providing
electric line or plant used for the purpose of giving supply) Regulations, (Revision-II) 2022
on 31
st
May 2022, vide which the Commission has notified metering and other charges. As
per the Regulation, metering charges (if any) shall be applicable in accordance with the
respective retail supply tariff order issued by the Commission from time to time. The relevant
extract of the Regulation is as follows:
“5.Other Charges to be recovered from consumers
5.1 As provided for in Section 45(3)(b) of the Electricity Act, 2003 (No. 36 of 2003), the
Distribution Licensee may charge from the consumers a rent or other charge in respect of
any electric Meter or Electrical Plant provided by the Distribution Licensee as provided in
Annexure-1 of these Regulations. Metering charges (if any) shall be applicable in
accordance with the respective retail supply tariff order issued by the Commission from
time to time.”
2.192 The Commission has decided not to levy any metering charges on the consumers.
2.193 Further, since the Commission has not allowed Depreciation of GFA created through
consumer contribution and grants, corresponding income under the head of Deferred income
has not been considered under the head of Other Income. The actual other income of the
Distribution Licensees excluding meter rent as per true-up orders issued by the Commission
for previous years is as shown in the table below:
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 100
Table 61: Total actual other income as per true-up orders (Rs Crore)
DISCOM
FY 2019-20
FY 2020-21
FY 2021-22
East DISCOM
156.92
151.11
90.91
West DISCOM
134.07
117.83
191.10
Central DISCOM
117.87
102.41
207.66
2.194 Based on the above actual other income admitted by the Commission in true-up orders for FY
2019-20, FY 2020-21 and FY 2021-22, the Commission has admitted Other Income for FY
2023-24 as the average of actual other income during FY 2019-20 to FY 2021-22, which
includes interest on deposits, sale of scrap, other miscellaneous receipts, etc., but excludes
meter rent and deferred income. The admitted Other Income for FY 2023-24 by the
Commission excluding metering charges is as tabulated below, which shall be considered
actuals at the time of true-up:
Table 62: Other Income admitted for FY 2023-24 (Rs. Crore)
DISCOM
FY 2023-24
East DISCOM
132.98
West DISCOM
147.66
Central DISCOM
142.65
State
423.29
Differential Bulk Supply Tariff (DBST)
Petitioners’ Submission
2.195 The Government of MP vide gazette notification dated 21
st
March, 2016 had allocated all the
stations to MPPMCL and in order to maintain equitable allocation of the power purchased
cost among all the three DISCOMs, MPPMCL have allocated the costs to the three DISCOMs
as per Differential Bulk Supply Tariff (DBST) methodology.
2.196 With the Implementation of Differential Bulk Supply Tariff (DBST) with effect from January
2020, the overall Power Purchase Cost of all the three DISCOMs is being distributed on the
basis of Revenue available with DISCOMs for power purchase and in-proportion of their
energy requirement.
2.197 The Power Purchase cost allocated to DISCOMs based on DBST methodology for FY 2023-
24 submitted by the Petitioners is given in the table below:
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 101
Table 63: DBST submitted by the Petitioners for FY 2023-24 (Rs Crore)
Sr.No
Particulars
Unit
East DISCOM
West DISCOM
Central DISCOM
State
A
Revenue from Existing Tariff
Rs. Crore
13,395
18,727
15,870
47,992
B
Other costs of Discoms
(Expenditure other than power purchase cost)
Rs. Crore
4,838
929
4,406
10,173
1
R&M Expense
Rs. Crore
336
245
341
921
2
Employee Expenses
Rs. Crore
1,443
1,422
1,326
4,190
3
A&G Expense
Rs. Crore
129
145
134
409
4
Depreciation and Related debits
Rs. Crore
296
346
395
1,037
5
Interest & Finance Charges
Rs. Crore
413
231
446
1,090
6
Other Debits, Write-offs (Prior period and bad debts)
Rs. Crore
2
2
2
6
7
RoE
Rs. Crore
235
175
277
687
8
Less: Other income
Rs. Crore
186
203
183
572
9
Impact of True ups
Rs. Crore
2,171
(1,433)
1,667
2,404
C
Intra- State transmission Charges including
SLDC Charges
Rs. Crore
1,289
1,544
1,502
4,335
D
Aggregated Amount available with Discoms for
Power purchase (A-B-C)
Rs. Crore
7,269
16,253
9,962
33,484
E
Total Power Purchase Cost
Rs. Crore
35,022
F
Surplus/Gap (E-D)
Rs. Crore
1,537
G
Ex-Bus Energy Requirement
MU
24,439
34,585
29,332
88,356
H
Ex-Bus Energy Requirement
%
28%
39%
33%
100%
I
Allocation of surplus/Gap as per the Energy
Requirement
Rs. Crore
425
602
510
1,537
J
Power Purchase Cost for Discom (D+I)
Rs. Crore
7,694
16,855
10,472
35,022
K
Bulk Supply Tariff
Rs./kWh
3.15
4.87
3.57
3.96
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 102
Commission’s Analysis of DBST
2.198 The Commission in previous Retail Tariffs Orders has been approving uniform tariff for the State considering the revenue gap at the State level.
For achieving the same, the Commission has been allocating the power purchase cost among the DISCOMs in proportion to the revenue
availability with each DISCOMs. It is observed that the Government of Madhya Pradesh vide gazette notification dated 21
st
March, 2016, had
allocated all the stations to MPPMCL for further allocation of power purchase cost among all the three DISCOMs. Accordingly, MPPMCL
implemented DBST methodology from January, 2020. Under DBST overall Power Purchase Cost of all the three DISCOMs are being distributed
on the basis of Revenue available with DISCOMs for power purchase and in-proportion of their energy requirement.
2.199 As the power purchase for all three DISCOMs is being managed by MPPMCL, it is necessary to approve power purchase cost in equitable way
to arrive at uniform tariff across the DISCOMs in the State. Accordingly, the Commission has allocated power purchase cost among the three
DISCOMs based on DBST methodology as proposed by the Petitioner for ARR of FY 2023-24, which is shown in the table below:
Table 64: Differential Bulk Supply Tariff Admitted by the Commission for FY 2023-24 (Rs Crore)
Particulars
Reference
East DISCOM
West DISCOM
Central DISCOM
State
Revenue from Admitted Tariff (Rs. Crore)
A
13,480.54
19,043.56
16,468.57
48,992.66
Other Costs of ARR of DISCOMs (Expenses other than
Power Purchase Cost) (Rs. Crore)
B
3,026.49
2,755.88
3,226.00
9,008.37
O&M Expenses
1,875.67
1,744.43
1,828.55
5,448.66
Depreciation
241.02
141.99
276.97
659.98
Interest & Finance Charges
On Project Loans
281.10
148.94
366.90
796.95
On Working Capital Loans
68.43
10.58
57.81
136.81
On Consumer Security Deposit
42.83
85.25
59.09
187.17
Return on Equity
231.54
172.41
270.16
674.11
Bad & Doubtful Debts
0.00
0.00
0.00
0.00
Less: Other Non-Tariff Income
132.98
147.66
142.65
423.29
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 103
Particulars
Reference
East DISCOM
West DISCOM
Central DISCOM
State
Revenue Gap of MP DISCOMs, MP Genco and MP Transco
True-up
418.88
599.96
509.15
1,527.99
Intra-State Transmission Charges including SLDC
C
1,290.73
1,544.05
1,504.67
4,339.45
Aggregated Amount available with DISCOMs for Power
purchase (Rs. Crore)
D=A-B-C
9,163.31
14,743.62
11,737.90
35,644.84
Total Power Purchase Cost (Rs. Crore)
E
35,644.84
Revenue Gap/(Surplus) (Rs. Crore)
F=E-D
0.00
Ex-Bus Energy Requirement (MU)
G
24,774.95
34,754.96
30,418.70
89,948.62
% Allocation as per Ex-Bus Energy Requirement
28%
39%
34%
100%
Allocation of Revenue Gap/(Surplus) as per Ex-Bus Energy
Requirement (Rs. Crore)
H
0.00
0.00
0.00
0.00
Power Purchase Cost for DISCOMs (Rs. Crore)
I=H+D
9,163.32
14,743.63
11,737.90
35,644.84
Bulk Supply Tariff for FY 2022-23
3.70
4.24
3.86
3.96
2.200 Based on the above, the ARR as admitted for FY 2023-24 is shown in the following table:
Table 65: Aggregate Revenue Requirement (ARR) admitted for State for FY 2023-24 (Rs Crore)
Particulars
East DISCOM
West DISCOM
Central DISCOM
State
Claimed
Admitted
Claimed
Admitted
Claimed
Admitted
Claimed
Admitted
Power Purchase Cost including Inter State Transmission
Charges
7,694.38
9,163.32
16,855.22
14,743.63
10,472.32
11,737.90
35,021.92
35,644.84
Intra-State Transmission Charges including SLDC
1,288.68
1,290.73
1,543.98
1,544.05
1,502.35
1,504.67
4,335.01
4,339.45
O&M Expenses
1,907.31
1,875.67
1,812.03
1,744.43
1,801.31
1,828.55
5,520.64
5,448.66
Depreciation
295.86
241.02
345.77
141.99
395.36
276.97
1,036.98
659.98
Interest & Finance Charges
On Project Loans
281.95
281.10
145.45
148.94
348.39
366.90
775.78
796.95
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 104
Particulars
East DISCOM
West DISCOM
Central DISCOM
State
Claimed
Admitted
Claimed
Admitted
Claimed
Admitted
Claimed
Admitted
On Working Capital Loans
78.28
68.43
17.15
10.58
39.51
57.81
134.95
136.81
On Consumer Security Deposit
53.19
42.83
68.29
85.25
58.26
59.09
179.73
187.17
Return on Equity
234.51
231.54
174.91
172.41
277.25
270.16
686.67
674.11
Bad & Doubtful Debts
2.00
0.00
2.00
0.00
2.00
0.00
6.00
0.00
Total Expenses Admitted
11,836.16
13,194.64
20,964.78
18,591.27
14,896.74
16,102.06
47,697.68
47,887.97
Less: Other income and Non-Tariff Income
186.01
132.98
202.80
147.66
183.31
142.65
572.12
423.29
Total ARR Admitted
11,650.15
13,061.66
20,761.98
18,443.60
14,713.43
15,959.42
47,125.57
47,464.68
Revenue Gap of MP Transco True-up of FY 2020-21
72.98
72.98
22.25
22.25
48.96
48.96
144.19
144.19
Revenue Surplus of MP Genco True-up of FY 2020-21
(338.61)
(342.17)
(338.61)
(342.17)
(338.61)
(342.17)
(1,015.83)
(1,026.52)
Revenue Gap of MP DISCOMs True-up of FY 2021-22
2,436.21
455.58
(1,116.94)
635.80
1,956.61
556.83
3,275.88
1,648.21
Revenue Gap of MP Transco True-up of FY 2021-22
-
232.50
-
284.08
-
245.53
-
762.11
Total ARR (including True-up)
13,820.73
13,480.54
19,328.69
19,043.56
16,380.39
16,468.57
49,529.81
48,992.66
2.201 MPERC (Terms and Conditions for Determination of Tariff for Supply and Wheeling of Electricity and Methods and Principles for Fixation of
Charges) Regulations, 2021 specifies that the till time there is complete accounting segregation between Wheeling and Supply Businesses of the
Distribution Licensee being done, the expenses of the Distribution Licensee shall be apportioned between the Wheeling and Supply Businesses
in accordance with the allocation matrix. The relevant extract for the provision has been reproduced below: -
“8.11. Till such time the complete accounting segregation has not been done between Wheeling and Supply Businesses of the Distribution
Licensee, the expenses of the Distribution Licensee shall be apportioned between the Wheeling and Supply Businesses in accordance with
the following Allocation Matrix:
Particulars
Wheeling Business
Supply Business
Operation and Maintenance expenses
70%
30%
Depreciation
95%
5%
Interest on loan
95%
5%
Interest on working capital
10%
90%
Return on Equity
90%
10%
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 105
Particulars
Wheeling Business
Supply Business
Power purchase cost including transmission and SLDC
charges
0%
100%
”
2.202 The purpose of segregating the total distribution expenses into wheeling and Supply activities is to establish the wheeling charges that are to be
recovered from open access customers.
2.203 Accordingly, the Commission has allocated the cost related to Wheeling and Supply activities as per allocation matrix. As such the ARR for FY
2023-24 for all the three DISCOMs is segregated as under:
Table 66: Admitted ARR for Wheeling Business for FY 2023-24 (Rs. Crore)
Particulars
East DISCOM
West DISCOM
Central DISCOM
State
Operation and Maintenance expenses
1,875.67
1,744.43
1,828.55
5,448.66
70% of Operation and Maintenance expenses for Wheeling Business
1,312.97
1,221.10
1,279.99
3,814.06
Depreciation
241.02
141.99
276.97
659.98
95% of Depreciation for Wheeling Business
228.97
134.89
263.12
626.98
Interest on Project Loans
281.10
148.94
366.90
796.95
95% of Interest on Project Loans for Wheeling Business
267.05
141.49
348.56
757.10
Interest on Working Capital for Wheeling Business
18.10
10.58
17.85
46.52
Return on Equity
231.54
172.41
270.16
674.11
90% of Return on Equity for Wheeling Business
208.39
155.16
243.15
606.70
Less: Other income and Non-Tariff Income
132.98
147.66
142.65
423.29
10% of other income and Non-Tariff Income for Wheeling Business
13.30
14.77
14.26
42.33
Impact of True-Ups of Past Years of MP Transco and DISCOMs for Wheeling Business
418.88
599.96
509.15
1,527.99
10% of Impact of True-Ups of Past Years of MP Transco and DISCOMs
41.89
60.00
50.91
152.80
Total for Wheeling Business
2,064.06
1,708.46
2,189.31
5,961.83
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 106
Table 67: Admitted ARR for Supply Business for FY 2023-24 (Rs. Crore)
Particulars
East
DISCOM
West
DISCOM
Central
DISCOM
State
Power Purchase Cost including transmission and SLDC charges
10,454.05
16,287.68
13,242.57
39,984.29
100% of Power Purchase Cost including transmission and SLDC charges for Supply Business
10,454.05
16,287.68
13,242.57
39,984.29
Operation and Maintenance expenses
1,875.67
1,744.43
1,828.55
5,448.66
30% of Operation and Maintenance expenses for Supply Business
562.70
523.33
548.57
1,634.60
Depreciation
241.02
141.99
276.97
659.98
5% of Depreciation for Supply Business
12.05
7.10
13.85
33.00
Interest on Project Loans
281.10
148.94
366.90
796.95
5% of Interest on Project Loans for Supply Business
14.06
7.45
18.35
39.85
Interest on Working Capital for Supply Business
50.33
0.00
39.96
90.29
Return on Equity
231.54
172.41
270.16
674.11
10% of Return on Equity for Supply Business
23.15
17.24
27.02
67.41
Interest on Consumer Security Deposit
42.83
85.25
59.09
187.17
100% of Interest on Consumer Security Deposit for Supply Business
42.83
85.25
59.09
187.17
Less: Other income and Non-Tariff Income
132.98
147.66
142.65
423.29
90% of other income and Non-Tariff Income for Supply Business
119.68
132.90
128.38
380.96
Impact of True-Ups of Past Years of MP Transco and DISCOMs
418.88
599.96
509.15
1,527.99
90% of Impact of True-Ups of Past Years of MP Transco and DISCOMs for Supply Business
376.99
539.96
458.23
1,375.19
Total for Supply Business
11,416.48
17,335.10
14,279.25
43,030.83
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 107
Revenue from Existing and Admitted Tariffs and Gap/Surplus
Petitioners’ Submission
2.204 The Petitioners submitted that there has not been any substantial tariff hike for the years FY 2014-15 and FY 2015-16 in the state of Madhya
Pradesh which has severely affected the financial health of the DISCOM’s. For FY 2016-17 to FY 2018-19, the Commission had approved an
average tariff hike of 8.40%, 9.48% and 0% respectively. In FY 2019-20 & FY 2020-21, there was 7% & 2% hike respectively, whereas in FY
2021-22 there was a marginal tariff hike of 0.63% only. The DISCOMs are finding it extremely difficult to sustain its operations at the present
tariff levels because of intrinsic rise in expenditure due to inflationary pressures, and consistent rise in power and energy demands, an ambitious
normative loss reduction trajectory and benchmarks set by the Commission, and obligations to be met under the policy objectives of the State
and Central Governments.
2.205 Accordingly, in order to bridge the revenue gap, it is necessary for the licensee to seek an appropriate hike in the tariff, up to the level as proposed
and detailed in the petition.
2.206 Petitioners have proposed a hike of 3.20% for FY 2023-24 as without it DISCOMs will not be able to maintain its operational viability.
2.207 The revenue from existing and proposed tariff for FY 2023-24 is as follows:
Table 68: Revenue at Existing and proposed Tariff submitted by Petitioner for FY 2023-24 (Rs. Crore)
Tariff Category / Sub-category
East DISCOM
West DISCOM
Central DISCOM
Total for the State
Revenue at
existing
Tariff
Revenue at
proposed
Tariff
Revenue at
existing
Tariff
Revenue at
proposed
Tariff
Revenue at
existing
Tariff
Revenue at
proposed
Tariff
Revenue at
existing
Tariff
Revenue at
proposed
Tariff
LV-1
Domestic
3,839
3,949
4,083
4,197
4,266
4,383
12,188
12,529
LV-2
Non-Domestic
1,145
1,186
1,280
1,327
1,270
1,322
3,695
3,834
LV-3
Public Waterworks & Street Light
273
281
387
399
329
340
989
1,021
LV-4
LT Industry
503
520
694
716
319
329
1,516
1,564
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 108
Tariff Category / Sub-category
East DISCOM
West DISCOM
Central DISCOM
Total for the State
Revenue at
existing
Tariff
Revenue at
proposed
Tariff
Revenue at
existing
Tariff
Revenue at
proposed
Tariff
Revenue at
existing
Tariff
Revenue at
proposed
Tariff
Revenue at
existing
Tariff
Revenue at
proposed
Tariff
LV-5
Agriculture
4,282
4,418
6,970
7,193
5,984
6,177
17,236
17,788
LV-6
EV Charging
0
0
0
0
0
0
0
0
TOTAL – LT
10,042
10,355
13,413
13,832
12,168
12,550
35,623
36,737
HV-1
Railway Traction
41
43
0
0
39
40
80
83
HV-2
HV 2: Coal Mines
409
423
0
0
24
25
433
448
HV-3.1
Industrial Use
2,129
2,205
2,987
3,098
2,466
2,555
7,582
7,858
HV-3.2
Non-Industrial
263
272
431
447
368
381
1,063
1,100
HV-3.3
Shopping Mall
7
8
47
49
35
36
90
93
HV-3.4
Power Intensive Industries
70
72
817
850
407
424
1,294
1,347
HV-4
Seasonal & Non-Seasonal
8
9
10
11
2
2
21
21
HV-5
PWW Works & Other Agri.
233
240
959
988
245
253
1,437
1,482
HV-6
Bulk Residential Users
190
186
23
23
111
108
324
317
HV-7
RECs/Synchro of power for Generator
connected to Grid
2
2
26
26
3
3
30
31
HV-8
EV Charging
1
1
12
11
2
2
16
15
HV-9
Metro Rail*
-
-
-
6
-
6
-
11
TOTAL – HT
3,354
3,461
5,314
5,508
3,702
3,836
12,369
12,804
TOTAL (LT+HT)
13,395
13,816
18,727
19,340
15,870
16,386
47,992
49,541
*Additional Submission
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 109
2.208 On basis of the above, the projected Revenue Gap/(Surplus) submitted by the Petitioner is as follows:
Table 69: Gap/Surplus for FY 2023-24 as submitted by the Petitioner
Particulars
Unit
East DISCOM
West DISCOM
Central DISCOM
State
Total ARR
Rs Crore
13,820.73
19,328.69
16,380.40
49,529.81
Revenue at Current Tariffs
Rs Crore
13,395.46
18,726.88
15,869.98
47,992.32
Total Revenue Gap/(Surplus)
Rs Crore
425.26
601.81
510.42
1,537.49
Average Cost of Supply
Rs./Unit
6.99
6.93
7.00
6.97
Commission Analysis
2.209 The consumer category-wise revenue including rebate/incentives at existing and admitted tariff for FY 2023-24 is presented in the table below:
Table 70: Revenue including Rebate/ Incentives at Existing and Admitted Tariffs for FY 2023-24 (Rs. Crore)
DISCOM
East DISCOM
West DISCOM
Central DISCOM
State
Tariff Category / Sub-category
Revenue at
Existing
Tariff
Revenue at
Admitted
Tariff
Revenue at
Existing
Tariff
Revenue at
Admitted
Tariff
Revenue at
Existing
Tariff
Revenue at
Admitted
Tariff
Revenue at
Existing
Tariff
Revenue at
Admitted
Tariff
LV-1
Domestic
3,910.79
3,969.27
4,215.37
4,275.20
4,270.49
4,328.94
12,396.64
12,573.41
LV-2
Non-Domestic
1,081.43
1,081.43
1,363.76
1,363.76
1,311.51
1,311.51
3,756.70
3,756.70
LV-3
Public Water Works & Street Light
270.12
270.98
405.55
407.24
345.19
346.45
1,020.86
1,024.67
LV-4
LT Industries
441.96
441.96
683.96
683.96
331.88
331.88
1,457.80
1,457.80
LV-5
Agriculture and Allied Activities
4,124.31
4,209.69
6,841.64
6,977.88
6,143.07
6,261.95
17,109.02
17,449.52
LV-6
E-Vehicle/ E-Rickshaws Charging Stations
0.08
0.09
0.15
0.11
0.12
0.12
0.35
0.32
LT Total
9,828.69
9,973.42
13,510.43
13,708.15
12,402.25
12,580.85
35,741.37
36,262.42
HV-1
Railway Traction
30.28
31.39
0.00
0.00
27.59
28.61
57.87
60.00
HV-2
Coal Mines
412.46
423.13
0.00
0.00
22.23
22.83
434.69
445.95
HV-3
HT Industrial, Non-Industrial and shopping
malls
2,601.81
2,657.93
4,207.42
4,309.23
3,367.94
3,447.09
10,177.17
10,414.26
HV-3.1: Industrial
2,242.95
2,289.57
2,932.67
2,993.91
2,535.60
2,587.72
7,711.22
7,871.20
HV-3.2: non-Industrial
277.88
284.65
423.78
434.53
378.40
388.17
1,080.05
1,107.35
HV-3.3: shopping malls
7.88
8.06
46.85
47.95
36.37
37.22
91.10
93.23
HV-3.4: Power Intensive Industries
73.10
75.65
804.13
832.84
417.57
433.99
1,294.79
1,342.48
HV-4
Seasonal & Non-Seasonal
7.45
7.49
7.27
7.33
0.97
0.98
15.68
15.80
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 110
DISCOM
East DISCOM
West DISCOM
Central DISCOM
State
Tariff Category / Sub-category
Revenue at
Existing
Tariff
Revenue at
Admitted
Tariff
Revenue at
Existing
Tariff
Revenue at
Admitted
Tariff
Revenue at
Existing
Tariff
Revenue at
Admitted
Tariff
Revenue at
Existing
Tariff
Revenue at
Admitted
Tariff
HV-5
Irrigation, Public Water Works and Other
than Agricultural
181.27
182.73
932.20
938.87
261.65
263.80
1,375.12
1,385.40
HV-6
Bulk Residential Users
198.51
199.26
27.81
27.93
110.81
111.28
337.14
338.47
HV-7
Synchronization / Start-Up Power
3.62
3.73
33.97
34.94
5.30
5.47
42.89
44.14
HV 8
E-Vehicle/ E-Rickshaws Charging Stations
1.35
1.46
12.37
11.63
2.14
2.33
15.86
15.42
HV-9
Metro Rail
0.00
0.00
0.00
5.48
0.00
5.32
0.00
10.80
HT Total
3,436.76
3,507.12
5,221.04
5,335.41
3,798.63
3,887.72
12,456.43
12,730.24
Grand Total (LT + HT)
13,265.45
13,480.54
18,731.47
19,043.56
16,200.87
16,468.57
48,197.80
48,992.66
2.210 On basis of the above, details of total ARR as admitted by the Commission and the revenue income including rebate/incentives at existing and
admitted tariff for FY 2023-24 is as shown in the table below:
Table 71: Final ARR and Revenue from existing tariffs for FY 2023-24 (Rs Crore)
Particulars
East DISCOM
West DISCOM
Central DISCOM
State
Total ARR admitted including True-up (A)
13,480.54
19,043.56
16,468.57
48,992.66
Revenue at existing Tariffs (B)
13,265.45
18,731.47
16,200.87
48,197.80
Uncovered Gap/(Surplus) (C=A-B)
215.09
312.09
267.69
794.87
2.211 To meet the aforesaid Revenue Gap of Rs. 794.87 Crore, the Commission has increased the tariff by 1.65%, which has been detailed in Tariff
design chapter of this order. The total ARR admitted by the Commission and revenue at admitted tariff is shown in table below:
Table 72: Final ARR and Revenue from admitted tariffs for FY 2023-24 (Rs Crore)
Particulars
East DISCOM
West DISCOM
Central DISCOM
State
Total ARR admitted including True-up (A)
13,480.54
19,043.56
16,468.57
48,992.66
Revenue at admitted Tariffs (B)
13,480.54
19,043.56
16,468.57
48,992.66
Uncovered Gap/(Surplus) (C=A-B)
0.00
0.00
0.00
0.00
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 111
A3: WHEELING CHARGES, CROSS SUBSIDY SURCHARGE AND
ADDITIONAL SURCHARGE
Determination of Wheeling Cost
Petitioners’ Submission
3.1 The Petitioners in their ARR Petition requested the Commission to determine wheeling
charges for FY 2023-24. Thereafter, the Petitioners made additional submission vide letter
dated 28
th
February, 2023 for determination of Wheeling Charges in this regard.
3.2 In the additional submission the Petitioners submitted that they have allocated the cost related
to Wheeling and Supply activities as per allocation matrix specified in Regulation 8.11 of the
MYT Regulations, 2021. Based on the allocation matrix, the expenditure towards wheeling
business for all the DISCOMs works out to be Rs. 6,542.69 Crore.
3.3 The Petitioners also submitted that the expenses of wheeling activity at different voltages
have been worked out using the asset value ratios as considered in MYT Tariff Order dated
31
st
March, 2022. Thereafter, the allocation of wheeling cost has been done based on the
usage of the network at different voltage levels by consumers, which is in line with the
methodology as adopted by the Commission in previous Tariff Orders. The Petitioners have
considered “Units to be Sold” approach at different voltage levels as the measure of network
usage to allocate the associated costs. Since 33 kV network is used by the consumers at 33
kV and below 33 kV (those at 11 kV and LT), cost of wheeling at 33 kV is again allocated to
the users appropriately in the submission of the Petitioners as detailed below:
Table 73 : Wheeling Charges submitted by the Petitioners for FY 2023-24
Sr.
N o.
Level
Wheeled
Sales
(MUs)
Level wise
%
Wheeled
Sales mix
%
Wheeled
sales mix
between
33kV &
below
33kV
% Alloca-
tion Ratio
FY 22-23
Wheeling
Cost segre-
gation
(as per %
Alloca-tion)
(Rs. Crore)
Wheeling
Cost
allocation
for 33kV
(Rs.
Crore)
Wheeling
Cost
allocation
for below
33kV
(Rs.
Crore)
Total
Wheeling
Cost
allocation
(Rs.
Crore)
Wheeling
Charges
allocation
(Rs/ kWh)
Wheeling
Charges
allocation
(Rs /
KVAh)
1
EHV (above 33kV)
6,053
9%
2
HT 33 kV
9,427
13%
14%
17.78%
1,163
169
169
0.18
0.17
3
Below 33 kV
55,594
78%
86%
82.22%
5,379
995
5,379
6,374
1.15
-
Total Sale
71,074
100%
100%
100%
6,543
1,163
5,379
6,543
Commission’s Analysis
3.4 From the Petitioners submission, the Commission observed that the Petitioners have derived
wheeling cost for the consumers at 33 kV and below 33 kV (those at 11 kV and LT). However,
as per the Madhya Pradesh Electricity Regulatory Commission (Cogeneration and Generation
of Electricity from Renewable Sources of Energy), Regulations, 2021 (First Amendment) any
consumer who has contracted demand or sanctioned load of 100kW or more except captive
consumer is eligible for requisition of green energy from the Distribution Licensee. The
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 112
Madhya Pradesh Electricity Regulatory Commission (Terms and Conditions for Intra-State
Open Access in Madhya Pradesh) Regulations, (Revision-I) 2021 as amended and Madhya
Pradesh Electricity Regulatory Commission (Methodology for determination of Open Access
charges and Banking charges for Green Energy Open Access consumers) Regulations, 2023
specify various charges to be levied on Green Energy Open Access Consumers which
includes wheeling charges. In view of the above, the Commission has determined wheeling
charges for the consumers at 33kV, 11kV and LT separately in this Order.
3.5 Regulation 8.11 of the MYT Regulations, 2021 specify allocation matrix for apportioning
expenses of DISCOMs into wheeling and supply businesses as follows:
Particulars
Wheeling Business
Supply Business
Operation and Maintenance
expenses
70%
30%
Depreciation
95%
5%
Interest on loan
95%
5%
Interest on working capital
10%
90%
Return on Equity
90%
10%
Power purchase cost including
transmission and SLDC charges
0%
100%
3.6 On the basis of the above allocation matrix and admitted ARR for FY 2023-24, the
expenditure towards wheeling business for all the DISCOMs works out to be Rs. 5,961.83
Crore.
Segregation of costs among voltage levels
3.7 The costs of wheeling activity have been distributed among three voltage levels of distribution,
i.e., 33 kV, 11kV and LT. Though, the EHT consumers (i.e., at voltages above 33 kV) are
consumers of the DISCOMs, they are not directly connected to the distribution system.
Certain costs related with metering, billing and collection are associated with EHT consumers.
At this juncture, the Commission is not inclined to get into these details, primarily on
account unavailability of data.
3.8 The Distribution Licensees in the State presently do not maintain accounts of their costs
voltage-wise. Similar is the case with other Government-owned Distribution Licensees
operating in most of the Other States.
3.9 It is observed that the present accounting practices followed by DISCOMs do not permit
segregation of GFA across voltage levels directly. The Commission, therefore, considers it
appropriate to adopt the approach of using transformation capacity in MVA at interfaces of
33/11 kV and 11/0.4 kV.
3.10 The data used for this exercise to arrive at the value of asset base is as follows:
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 113
Table 74 : Voltage level-wise Cost Break-up of Sub transmission & Distribution Lines
Voltage level of
Lines
East DISCOM
(ckt-kms)
West DISCOM
(ckt-kms)
Central DISCOM
(ckt-kms)
Length of lines
at State Level
(ckt-kms)
Total Cost of
lines (Rs. Crore.)
Per unit cost (
Rs. Lakh /ckt-
km)
33KV
20,805.00
18,374.00
20,116.43
59,295.43
10,459.97
17.64
Below 33 KV
(a) 11 KV
1,66,189.00
1,38,668.00
1,62,636.55
4,67,493.55
76,152.41
16.29
(b) LT
1,46,050.00
1,74,433.00
1,27,849.33
4,48,332.33
42,108.49
9.39
Sub-Total
3,12,239.00
3,13,101.00
2,90,485.88
9,15,825.88
1,18,260.90
Total
3,33,044.00
3,31,475.00
3,10,602.31
9,75,121.31
1,28,720.87
Table 75 Voltage level-wise cost of Transformer
Transformer Voltage
Level
East
DISCOM
(MVA)
West
DISCOM
(MVA)
Central
DISCOM
(MVA)
State
(MVA)
Total Cost
(Rs. Crore)
Per unit cost
(Rs. Lakh
/MVA)
33/11 kV Transformer
11,436.00
13,733.05
13,386.00
38,555.05
18,657.17
48.39
11/0.4 kV Transformer
11,400.00
21,816.00
16,518.55
49,734.55
16,195.81
3.26
Total
22,836.00
35,549.05
29,904.55
88,289.60
34,852.98
3.11 Data for length of lines and transformation capacity expected to be added during FY 2023-
24 has been considered as provided in the Petition.
3.12 In order to identify the asset values at different voltage levels, it is necessary to “assign” the
interface transformers to the voltage levels. For this exercise, the Commission considers it
appropriate to include the distribution transformers (11/0.4 kV) to be a part of the 11 kV
network and the power transformers of 33/11 kV to be a part of the 33 kV network. Based on
this method, the asset values at different voltage levels works out to be as follows:
Table 76 : Identification of value of network at different each voltage level (Rs. Crore)
Voltage level
Cost of Lines
(Rs. Crore)
Cost of Transformation
(Rs. Crore)
Total Cost
(Rs. Crore)
33 kV
10,459.97
18,657.17
29,117.14
Below 33 kV
(a) 11 kV
76,152.41
16,195.81
92,348.22
(b) LT
42,108.49
42,108.49
Total
1,28,720.87
34,852.98
1,63,573.85
3.13 Expenses of wheeling activity are worked out using the asset value ratios as obtained from
above, given in the table below:
Table 77 : Identification of network expenses (wheeling cost) at different voltage levels
Voltage level
Assets value
(Rs. Crore)
Assets value
Ratio (%)
Total wheeling cost
(Rs Crore)
Wheeling Cost
( Rs Crore)
33 kV
29,117.14
17.80%
5,961.83
1,061.24
Below 33 kV
(a) 11 kV
92,348.22
56.46%
3,365.85
(b) LT
42,108.49
25.74%
1,534.74
Total
1,63,573.85
100.00%
5,961.83
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 114
Sharing of Wheeling costs
3.14 The cost of wheeling is again required to be allocated to the users appropriately based on the
usage of network at different voltage levels by consumers. Consumers at 33 kV Voltage level
uses 33 kV network only while consumers at 11 kV Voltage level use network of 33 kV and
11kV and LT Consumers use network of 33 kV, 11kV and LT.
3.15 The Sales at different voltage levels are as follows:-
Table 78 : Sales at different voltage levels
EHT (400 kV,
220 kV, 132 kV
& 66 kV)
33 kV
System
11 kV
LT
State
5,923.80
9,844.72
954.44
55,413.51
72,136.47
3.16 The Commission has chosen “Units to be Sold” at different voltage levels as the measure
of network usage to allocate the costs as detailed below:
Table 79 : Allocation of wheeling cost over Distribution System Users at 33 kV
Particulars
Reference
Unit for item
under
reference
Quantum/
Amount
Wheeling Cost at 33 kV
A
Rs. Crore
1,061.24
Sales at 33 kV (as per Table:-78)
B
MU
9,844.72
Total Sales {excluding sales at 132 kV} (as per Table:-78)
C
MU
66,212.67
Proportion of 33 kV sales to total sales
D=B/C*100
%
14.87%
Cost allocation
Wheeling cost of 33 kV allocated to 33 kV users only
E=A*D
Rs. Crore
157.79
Table 80 : Allocation of wheeling cost over Distribution System Users at 11 kV
Particulars
Reference
Unit for
item under
reference
Quantum/
Amount
Wheeling Cost at 33 kV
A
Rs. Crore
1,061.24
Wheeling cost of 33 kV allocated to 33 kV users only
B
Rs. Crore
157.79
Remaining Wheeling Cost of 33kV
C=A-B
Rs. Crore
903.45
Wheeling Cost at 11 kV
D
Rs. Crore
3,365.85
Wheeling Cost at 11 kV along with remaining Wheeling Cost of 33kV
E=C+D
Rs. Crore
4,269.30
Sales at 11 kV (as per Table:-78)
F
MU
954.44
Total Sales {excluding sales at 132 kV} (as per Table:-78)
G
MU
66,212.67
Proportion of 11 kV sales to total sales
H
MU
1.44%
Cost allocation
Wheeling cost of 11 kV allocated to 11 kV users only
I=E*H
Rs. Crore
61.54
3.17 The remaining wheeling cost has been allocated to LT consumers. Based on these allocations
and considering the consumption at 33 kV,11 kV and LT the wheeling charges in Rupees per
unit are determined as follows:
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 115
Table 81 : Wheeling Charges at different Voltage levels
Voltage
Wheeling Cost allocated
(Rs. Crore)
Sales
(MU)
Wheeling charges
(Rs. /kWh)
33 kV
157.79
9,844.72
0.16
Below 33 kV
(a) 11 KV
61.54
954.44
0.64
(b) LT
5,742.50
55,413.51
1.04
3.18 Applicability of wheeling charges for the Open Access consumers depending on their
connectivity shall be governed by MPERC (Terms and Conditions for Intra-State Open
Access in Madhya Pradesh) Regulations, 2021 and MPERC (Methodology for determination
of Open Access charges and Banking charges for Green Energy Open Access consumers)
Regulations, 2023 and amendments thereof.
Determination of Cross-Subsidy Surcharge
Petitioners’ Submission
3.19 The Petitioners submitted that the basis for determination of the cross-subsidy surcharge to
be taken as per provisions of Tariff Policy, 2016. The Commission has determined the average
tariff based on the power purchase cost as per previous year’s available data. Any variation
on account of such change in fuel cost is also passed on to the consumer through FCA, which
will result in an increase in average tariff by FCA amount. Therefore, it will be appropriate to
increase the cross-subsidy surcharge to the extent of FCA charges payable for a particular
period.
Commission’s Analysis
3.20 The Tariff Policy notified by GOI on dated 28
th
January, 2016 prescribes the following
formula for determination of cross- subsidy surcharge for various categories of consumers.
“8.5 Cross-subsidy surcharge and additional surcharge for open access
8.5.1 …
….
Surcharge formula:
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
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 116
R is the per unit cost of carrying regulatory assets.
Above formula may not work for all distribution licensees, particularly for those having
power deficit, the State Regulatory Commissions, while keeping the overall objectives
of the Electricity Act in view, may review and vary the same taking into consideration
the different circumstances prevailing in the area of distribution licensee.
Provided that the surcharge shall not exceed 20% of the tariff applicable to the category
of the consumers seeking open access.
Provided further that the Appropriate Commission, in consultation with the
Appropriate Government, shall exempt levy of cross subsidy charge on the Railways,
as defined in Indian Railways Act, 1989 being a deemed licensee, on electricity
purchased for its own consumption.
8.5.4 The additional surcharge for obligation to supply as per section 42(4) of the Act
should become applicable only if it is conclusively demonstrated that the obligation of
a licensee, in terms of existing 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 contract. The fixed costs related to network assets would be
recovered through wheeling charges.
8.5.5 Wheeling charges should be determined on the basis of same principles as laid
down for intra-state transmission charges and in addition would include average loss
compensation of the relevant voltage level.”
3.21 Accordingly, the cost of supply to the consumer may be computed on the basis of the weighted
average cost of power purchase by the Licensee including cost of meeting the Renewable
Purchase Obligation (C), applicable transmission and distribution losses (L), Cost of
transmission and distribution of electricity (D). The Commission in subsequent section has
determined these components of Cost of Supply. Depending on the applicability of various
charges for each consumer, as specified in MPERC (Terms and Conditions for Intra-State
Open Access in Madhya Pradesh) Regulations, 2021 and MPERC (Methodology for
determination of Open Access charges and Banking charges for Green Energy Open Access
consumers) Regulations, 2023 and amendments thereof, the Licensee shall compute the Cross
Subsidy surcharge.
3.22 The weighted average cost of power purchase by the Licensee including cost of meeting the
Renewable Purchase Obligation (C) works out as shown in table below:
Table 82 : Weighted average cost of power purchase by the Licensee including cost of meeting
the Renewable Purchase Obligation
Generating Stations
Requirement (MU)
Total cost
(Rs. Crore)
Wt. Average rate of
power purchase
(Rs./unit)
Dispatched
89,948.62
32,619.37
3.63
3.23 The Tariff Policy prescribes that the Loss level (term ‘L’) should be worked out for each
voltage level separately. Losses at each voltage level are assumed as below for this purpose
because of non-availability of required reliable data with the DISCOMs:
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 117
Table 83 : Voltage-wise losses
Voltage Level
Loss level (L)
EHT (transmission system) including External losses*
3.53%
33 kV
#
4.17%
11 kV
#
5.22%
LT
#
6.06%
* EHT Voltage level losses have been considered 3.53% for FY 2023-24.
#Average voltage losses at each level submitted by the Petitioners have been considered and
apportioned as per the normative distribution losses.
3.24 The cost of transmission shall be uniformly spread over all consumers at every voltage
level, as the transmission network is utilized by all the consumers. Therefore, similar to
wheeling costs, the admitted transmission charges for FY 2023-24 are worked out as under:
Table 84 : Transmission Charges
Particulars
Unit
Quantity
PGCIL Charges
Rs. Crore
3,025.47
MPPTCL Charges including SLDC Charges
Rs. Crore
4,339.45
Total Charges
Rs. Crore
7,364.93
Units to be handled
MU
89,948.62
Transmission Charges per unit
Rs/kWh
0.82
3.25 Wheeling charges have been determined for consumers connected at 33 kV, 11kV and LT as
shown in Table 81 : Wheeling Charges, above.
3.26 Finally, the term in the Tariff Policy formula, ‘T’, Average Tariff for different categories, is
derived from expected revenue for FY 2023-24 as shown in the following table:
Table 85: Average Billing Rate (ABR) for FY 2023-24 at approved tariff (Rs./kWh)
Category of consumers
Average Tariff 'T'
(Rs Per Unit)
LV-1: Domestic
6.49
LV-2: Non Domestic
9.45
LV-3: PWW
6.98
LV-4: LT Industries
8.99
LV-5: Agriculture & allied activities
6.02
LV-6: E-Vehicle/ E-Rickshaws Charging Stations
6.79
HV-1: Railway Traction
5.42
HV-2: Coal Mines
8.73
HV-3: HT Industrial, Non-Industrial and Shopping Malls
7.55
HV-3.1: Industrial
7.86
HV-3.2: Non Industrial
9.07
HV-3.3: Shopping Malls
8.40
HV-3.4: Power Intensive Industries
5.48
HV-4: Seasonal & Non Seasonal
8.42
HV-5: Irrigation, Public Water Works and Other than Agricultural
7.85
HV-6: Bulk Residential Users
7.57
HV-7: Synchronization and Start-Up Power
10.95
HV 8: E-Vehicle/ E-Rickshaws Charging Stations
6.79
HV 9: Metro Rail
6.79
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 118
3.27 As per the MPERC (Terms and Conditions for Intra-State Open Access in Madhya Pradesh)
Regulations, 2021 and amendments thereof, the consumers other than Renewable Energy
users with contract demand of 1 MW and above are allowed Open Access. These consumers
are to be connected at 33 kV or above as per Madhya Pradesh Electricity Supply Code, 2021
as amended from time to time.
3.28 Further, Renewable Energy Generators and users having capacity of 100 kW or above are
also eligible for Open Access, subject to no operational constraints in the Licensee’s system
as per MPERC (Terms and Conditions for Intra-State Open Access in Madhya Pradesh)
Regulations, 2021 and MPERC (Methodology for determination of Open Access charges and
Banking charges for Green Energy Open Access consumers) Regulations, 2023 and
amendments thereof{hereinafter referred to as MPERC (Intra-State or Green Energy Open
Access) Regulations}.
3.29 In accordance with the above provisions, the total charges (Rs/unit) i.e. [C/ (1-L/100) + D+
R] for various LT & HT categories are to be computed as per applicable cost and eligibility
as per the MPERC (Intra-State or Green Energy Open Access) Regulations. The Cross-
Subsidy Surcharge shall be the difference of average tariff (T) as specified in Table:85, above
and the total charges (Rs/unit) for that particular category at particular voltage level to be
computed based on cost component determined above depending upon its applicability as per
MPERC (Intra-State or Green Energy Open Access) Regulations. However, Cross-Subsidy
surcharge is not to exceed 20% of the average cost of supply for the consumers seeking Open
Access as per MYT Regulations, 2021 and amendments thereof. In case where Cross-Subsidy
Surcharge, based on above methodology, works out to be negative, the same shall be
considered as zero for billing purposes.
Illustration for computation of Cross Subsidy Surcharge
Illustration-1: Both Generator and consumer are connected to transmission network (132 kV or above)
Illustration-2: Generator is connected to Transmission network (EHT voltages), while the consumer is
connected to the distribution network at 33 kV of Distribution Licensee.
Table 86 : Illustration of Computation of Cost for Cross Subsidy Surcharge (Rs. per unit)
Illustration
Wt. Average rate
of power purchase
(Rs. /unit)
Cost of Power
grossed up for
transmission
losses (3.53%)
Cost of Power
grossed up for
distribution losses
(33kV-4.17%,)
Transmission
charges
(Rs. per unit)
Wheeling
charges at 33
kV
(Rs. per unit)
Total Cost
[C/(1-L/100) +
D+R]
1
3.63
3.76
-
0.82
-
4.58
2
3.63
3.76
3.92
0.82
0.16
4.90
Table 87: Category wise Cross Subsidy Surcharge as per above Illustration (Rs. Per unit)
Category of HT/EHT consumers
Average Tariff
‘T’ (Rs Per Unit)
Ceiling 20%
of AcoS
(Rs/Unit)
CSS (Rs/Unit)
Applicable CSS
(Rs/Unit)
HV-1: Railway Traction (Illustration -1)
5.42
1.36
0.85
0.85
HV-2: Coal Mines
8.73
1.36
3.82
1.36
HV-3: HT Industrial, Non-Industrial and Shopping
Malls
7.55
1.36
2.65
1.36
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 119
Category of HT/EHT consumers
Average Tariff
‘T’ (Rs Per Unit)
Ceiling 20%
of AcoS
(Rs/Unit)
CSS (Rs/Unit)
Applicable CSS
(Rs/Unit)
HV-3.1: Industrial
7.86
1.36
2.96
1.36
HV-3.2: Non Industrial
9.07
1.36
4.17
1.36
HV-3.3: Shopping Malls
8.40
1.36
3.50
1.36
HV-3.4: Power Intensive Industries
5.48
1.36
0.58
0.58
HV-4: Seasonal & Non Seasonal
8.42
1.36
3.52
1.36
HV-5: Irrigation, Public Water Works and Other
than Agricultural
7.85
1.36
2.94
1.36
HV-6: Bulk Residential Users
7.57
1.36
2.67
1.36
HV-7: Synchronization and Start-Up Power
10.95
1.36
6.04
1.36
HV 8: E-Vehicle/ E-Rickshaws Charging Stations
6.79
1.36
1.89
1.36
Note:
1. Cross-Subsidy surcharge shall not exceed 20% of the average cost of supply for the consumers seeking Open Access.
2. Based on the applicability of charges specified in the MPERC (Intra-State or Green Energy Open Access) Regulations,
the DISCOMs shall compute applicable CSS for other consumer categories.
3.The applicable Terms and Conditions of MPERC (Intra-State or Green Energy Open Access) Regulations shall be
applicable to the consumers seeking Open Access.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 120
Determination of Additional Surcharge
Petitioners’ submission
3.30 The Petitioners submitted that the Tariff Policy, 2016 prescribes for the determination of
additional surcharge to be levied from consumers who are permitted Open Access.
3.31 As per submission of the Petitioners, the financial position of the DISCOMs is getting
constrained due to eligible consumers opting for Open Access. There has been an increase in
quantum and number of consumers opting for Open Access over the last few years. With this
shift of consumers to Open Access, the power remains stranded and the DISCOMs have to
bear the additional burden of capacity charges of stranded power to comply with their
Universal Supply Obligation.
3.32 Petitioners have stated that in other States also, separate orders for levy of Additional
Surcharges have been passed by respective Commissions after considering the impact of shift
by Open Access consumers and based on other data with due prudence check.
3.33 In light of the provisions prescribed in Clause 5.8.3 of the National Electricity Policy, Section
42(4) of the Electricity Act 2003, besides relevant clause 13.1 of MPERC (Terms &
Conditions for Open Access in Madhya Pradesh) Regulations, 2005, the Petitioners worked
out Additional Surcharge on a yearly basis for Open Access consumers of the State in addition
to levy of Cross Subsidy Surcharge specified in Tariff Policy, 2016 on the basis of latest data
for previous 12 months commencing from September 2021 to August 2022.
3.34 The Petitioners have computed the Additional Surcharge by considering the weighted average
monthly fixed rate of surrendered power, which is based on daily weighted fixed rate of the
generating station in the surrendered power. The Petitioners computed Additional Surcharge
as shown in the table below:
Table 88 : Computation of Additional Surcharge Submitted by the Petitioners for FY 2023-24
Sr.
No.
Months
Energy
entitlement
(MU)
Energy
Scheduled
(MU)
Energy
Surrendered
(MU)
Effective
Fixed Cost
Applied
(Rs/Unit)
OA
Units
(MU)
Cost of Back Energy
Surrendered due to
Open Access
(Rs. Crore)
1
2
3
4
5=3-4
6
7
8=(7*6)
1
Sep-21
5,821.08
5,419.66
401.42
1.63
186.47
30.30
2
Oct-21
6,160.09
5,405.75
754.33
1.23
109.80
13.51
3
Nov-21
6,490.20
5,660.75
829.45
1.23
153.65
18.92
4
Dec-21
7,186.38
6,258.70
927.67
1.15
162.49
18.67
5
Jan-22
6,977.32
5,781.90
1,195.43
0.98
134.32
13.18
6
Feb-22
6,744.78
6,165.06
579.71
1.32
141.02
18.66
7
Mar-22
6,976.92
6,791.40
185.53
1.55
84.67
13.16
8
Apr-22
6,539.67
6,478.58
61.09
1.21
53.65
6.48
9
May-22
7,084.46
6,645.12
439.34
1.41
119.41
16.85
10
Jun-22
6,931.75
6,302.04
629.71
2.86
101.91
29.17
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 121
Sr.
No.
Months
Energy
entitlement
(MU)
Energy
Scheduled
(MU)
Energy
Surrendered
(MU)
Effective
Fixed Cost
Applied
(Rs/Unit)
OA
Units
(MU)
Cost of Back Energy
Surrendered due to
Open Access
(Rs. Crore)
11
Jul-22
6,788.46
5,955.12
833.33
1.57
145.13
22.72
12
Aug-22
6,222.26
5,291.62
930.64
1.38
146.05
20.23
Total
79,923.37
72,155.71
7,767.66
1,538.58
221.85
Additional Surcharge on OA Consumers (Rs./Unit) = (8/7)
1.44
3.35 The Petitioners have thus claimed the Additional Surcharge of Rs. 1.44 per unit on the power
drawn by the Open Access consumers from the date of issuance or applicability of this Retail
Supply Tariff Order by the Commission.
Commission’s Analysis
3.36 The Commission has considered the submission made by the Petitioners and stakeholders in
light of the provisions of Clause 5.8.3 of the National Electricity Policy, Clause 8.5 of the
Tariff Policy, 2016, Section 42(4) of the Electricity Act, 2003, and determined Additional
Surcharge. The Additional Surcharge determined by the Commission shall be levied in
addition to Cross Subsidy Surcharge determined by the Commission in accordance with the
Tariff Policy, 2016.
3.37 The Commission has computed the Additional Surcharge by considering the average per unit
fixed charge of the Thermal power plants as per the approach adopted by the Commission in
MYT Order. Computation of the Additional Surcharge is shown in the table below:
Table 89 : Determination of Additional Surcharge for FY 2023-24
Sr. No.
Particulars
Reference
Unit
Amount
1
Fixed Cost of Thermal Generating Sources for FY 2023-24
A
Rs. Crore
11,161.39
2
Total Available MU from Thermal Generating Stations for FY 2023-24
B
Mus
87,537.02
3
Wt. Avg. Per Unit FC of Thermal Generating Stations for FY 2023-24
C=A/B
Rs. /kWh
1.28
4
Total Projected Backdown/RSD Volume for FY 2023-24
D
MUs
2,915.98
5
Projected Open Access Volume for year for FY 2023-24 based on actual of
previous year (as per Petitioners submission)
E
MUs
1,538.58
6
Fixed Cost pertaining to Backdown/RSD capacity for FY 2023-24
F=E*C/10
Rs. Crore
196.18
7
Per Unit Additional Surcharge (to be applicable on OA Consumers)
G=F/E
Rs./kWh
1.28
3.38 The Commission has thus determined the Additional Surcharge of Rs. 1.28 per unit in
accordance with the applicable Regulations from the date of applicability of this Retail Supply
Tariff Order.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 122
A4: GREEN ENERGY TARIFF
Petitioners’ submission
4.1 The Petitioners submitted that there is a growing demand from consumers for a rapid
transition to a zero-carbon economy. Over 175 of the world’s most influential companies have
already made this commitment through the global corporate leadership initiative, RE100. This
is driving up demand for renewable electricity and creating a shift in demand patterns away
from fossil fuels across the global power system. Google & Autodesk are just a few of the
companies that have already achieved their goal and are now powered by 100% renewable
energy. They are demonstrating to their stakeholders including investors, customers and
policymakers — that they see a future in which businesses are powered by renewables.
4.2 It is mentioned by the Petitioners that the Government of India is also promoting renewable
energy in a big way and has kept an aggressive target of 175 GW of renewable energy by
2022. Indian corporates are also playing key role in achieving the aggressive target of the
Government as corporate citizens and other resultant advantage of being zero carbon
companies.
4.3 Petitioners have stated that the corporate consumers have already initiated the process by
opting to receive RE under Open Access mechanism as approved by the Commission.
However, many corporates do not wish to go through this process of sourcing Renewable
Energy because either they are not eligible to avail open access under the current Regulatory
framework or they do not have the resources, expertise and the bandwidth required for
carrying out this activity.
4.4 Considering the above practices available in other State, petitioners requested the
Commission for determination of Green Energy Tariff in MYT Petition for Control Period
for FY 2022-23 to FY 2026-27. The Commission considered the proposal of the petitioners
and approved the Green Energy Tariff of Rs. 1.13 per unit for FY 2022-23 in the MYT Order.
4.5 The Commission determined the Green Energy Tariff for FY 2022-23 as 50% of the
difference in weighted average charge of RE and weighted average rate of Energy charge of
non-RE sources.
4.6 In view of the variations in power purchase cost and expected capacity additions of renewable
energy during FY 2022-23 & FY 2023-24, the Petitioners have computed the Green Energy
Tariff to be paid by such consumers on the basis of projected power purchase cost for FY
2023-24 as indicated below:
Table 90 : Green Energy Tariff proposed by the Petitioners for FY 2023-24
RE Power Procurement for
the Period FY 2023-24
Non-RE Power Procurement
(Only Variable) for the Period
FY 2023-24
Difference
between RE
& Non-RE
Power
Claimed
Green Energy
Tariff
MU
Rs. Cr
Rs/Unit
Rs/Unit
Rs. Cr
Rs/Unit
Rs/Unit
Rs/Unit
A
B
C
D
E
F
G = (C – F)
H=G*50%
16,763
6,190
3.69
71,593
15,083
2.11
1.58
0.79
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 123
4.7 As per Petitioners the Green Energy Tariff recovered from these consumers for supply of
100% renewable energy in addition to Tariff applicability of consumers, will increase the
tariff income of the distribution business and thereby be fully accounted for reduction in ARR.
Further, these initiatives will also promote the Government of India’s pledge towards green
energy, clean environment and sustainable development Goals.
4.8 Thereafter, the Petitioners made additional submission vide letter dated 28
th
February, 2023
for proposal for Green Energy Tariff for Certification and for RPO Compliance to the
Commission.
Additional Submission regarding applicability of Green Energy Tariff for consumers willing to
avail RE power Certification only.
4.9 The Petitioners submitted that till date only a few consumers have opted to avail Green Energy
Tariff and this may be mainly because the existing provision mandate for procurement of
100% RE. Hence in order to promote use of Green Energy by consumers who are willing to
reduce their carbon footprint, the petitioners wish to extend this tariff to such potential
consumers also who wants to avail Renewable energy for meeting part of their total monthly
consumption and/or for entire monthly consumption.
4.10 The Petitioners submitted that, consumers are also approaching the DISCOMs for availing
Renewable / Green Energy for occasions like marriage functions fests’ parties etc. on
permanent or temporary connection for shorter durations than a month. So, if the Green
energy is allowed for shorter durations also then there would be more takers for Green Energy.
The petitioners therefore propose to offer supply of Renewable Energy in terms of number of
days in a particular billing month.
4.11 The Petitioners proposed amendment in the submission made under para 18.7 of the Petition
which is as follows:-
“18.7 All Electricity Consumers in the State may opt to purchase Green Energy on voluntary
basis up to a certain percentage (in the multiplication of 5) of their monthly consumption or
for entire consumption during any billing month. For example, the consumer may apply for
say a minimum 25% of his/her Monthly consumption from Green Energy, which can go up to
100% in steps of 5%.
Further, any electricity Consumer who wishes to avail Green Energy Tariff for any number
of days in a billing month may also place a requisition for Green Energy Tariff with their
respective Distribution Licensee.
…………………………………..”
Additional Submission for determination of Green Energy Tariff for RPO compliance of an
Entity
4.12 The Petitioners submitted that as per MoP (Promoting Renewable Energy through Green
Energy Open Access) Rules, 2022, the green open access is allowed to any consumer and the
limit of Open Access transaction has been reduced from 1 MW to 100 kW for green Energy.
This is mainly to enable small consumers to purchase Renewable Energy (RE) through Open
Access.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 124
4.13 Further, as per MPERC (Cogeneration and generation of electricity from Renewable Sources
of Energy), (Revision-II), Regulations, 2021 (First amendment) an entity whether obligated
or not has an option to meet its Renewable Purchase Obligation (RPO) by purchasing RE
power directly from the DISCOM. In such case the DISCOMs are required to procure such
quantity of Green Energy and supply it to the consumers and a separate tariff is to be
determined by the Commission. The Regulation 3.8(A)(c)(iii) of the first amendment to
MPERC Cogen Regulations, 2021 and Clause 4 (C) (c) of Rules, 2022, the component for
Green Energy Tariff for RPO obligation of an entity shall include:
(A) Average Pooled Power Purchase Cost of RE
(B) Cross Subsidy Charges, if any and
(C) Service Charge covering prudent cost of distribution licensee for providing Green Energy.
4.14 The Petitioners submitted that the basic intention here is to ascertain the cost that the
Distribution Licensee will incur in order to procure and supply such quantity of green energy
as requisitioned by the consumer. Therefore, to arrive at such cost, the said Regulations have
clearly stipulated the components which shall constitute the part of such cost. The Petitioners
submitted that, while such cost can be determined separately for individual categories of
consumer taking into account the current level of cross subsidy and the service charge
covering prudent cost or can be determined as an incremental cost which will be over and
above the existing tariff/ABR of the consumer.
4.15 The consumer requisitioning the Green Energy will remain to be the consumer of DISCOMs
and for such consumer, a tariff/ABR has already been approved which not only take care the
current level of cross subsidy but also cover the service charges of the Distribution Licensee
such as O&M, Interest on loan etc. and also cover the average pooled power purchase cost.
Hence, the existing tariff takes care of the component (A), (B) and Part of component (C) of
Green Energy Tariff as stipulated in the said Regulations. Therefore, the Petitioners have
adopted a simplistic approach wherein it has calculated the incremental prudent cost which is
envisaged to be incurred while procuring and supplying additional RE power as requisitioned
by the consumer to fulfill his RPO Obligation. Such incremental cost has been termed as
Green Energy Tariff and is proposed to be levied over and above the existing Tariff structure.
The detailed approach and rationale considered by the Petitioners is discussed in the
subsequent paras:
4.16 The Petitioners submitted that as per said Rules, the consumer shall have the flexibility to
give separate requisition for Solar and Non-Solar power. The Petitioners understand that since
earlier the RPO obligation were defined separately as a percentage of Solar and Non-Solar
Power, hence, to fulfill such obligation the aforesaid Rules/Regulations have categorically
mentioned separate requisition for Solar and Non-Solar power. However, the Commission
has recently redefined the RPO trajectory as per its first amendment to MPERC (Co-
generation and Generation of Electricity from Renewable Sources of Energy) (Revision-II)
Regulations, 2021 dated 16
th
January, 2023.As per the said amendments, now the RPO will
be measured in terms of Wind RPO, HPO, Other RPO and Storage separately. Therefore, the
Petitioners have proposed Green Energy Tariff separately for Wind RPO, HPO and Others
(mainly Solar).
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 125
4.17 As regard to ascertaining the prudent cost, the Petitioners submitted that RE power (namely
wind and solar) are infirm sources of generation as they depend on the availability of wind
and sunlight. Envisaging the average Capacity Utilization Factor (CUF) of 25% for Solar and
Non-Solar (mainly wind), the MPPMCL/Discoms would have to contract/tie up for additional
RE power equivalent to around 3 to 4 times the demand requisitioned by the consumers.
4.18 As per Petitioners, the RE power being a must run has to be consumed as and when it is
generated. Although there are technologies where the electricity can be stored in a small
quantum however the technology for storing electricity on large-scale on commercial basis is
still under development.
4.19 Considering the above, it is envisaged by the Petitioners that when a consumer requisitions
for say Solar power only, then the MPPMCL/DISCOMs would require to tie-up with
additional capacity of around 3 to 4 times as explained above. In other word for a demand of
say 100 MW, MPPMCL/DISCOMs would have to contract with additional RE for around
300MW to 400 MW. However, such a power will be available to DISCOMs only during the
day when sunlight is available and considering the requirement of RE power for consumer as
100% of its entire consumption, the MPPMCL/DISCOMs would have to arrange RE power
for entire day. In such cases the MPPMCL/DISCOMs would have to purchase RE from short
term market/power exchange. The other option is to have additional contracted capacity of
say around 7 to 8 times in such a way that the additional surplus power generated during the
day would get absorbed in a day and on cumulative basis the demand of consumer gets
matched with solar generation at the month end.
4.20 As per Petitioners, the cost of procuring such additional RE power being Solar, Wind or Hydro
would be different from that of the existing weighted average power purchase cost. The
Petitioners submitted that the weighted average cost of existing RE arrangement of DISCOMs
is for RPO compliance of DISCOMs only and such a cost cannot be considered as the cost
for arranging additional RE power for RPO compliance of consumer since the same pertains
to historically discovered price with different tied up capacities of DISCOMs. However, at
present the price for arranging RE power has substantially changed due to various factors
which are beyond the control of the Petitioners. Although, such costs cannot be ascertained
beforehand as it will be subjected to future bidding and availability vis-à-vis demand of such
RE sources, however, it is necessary to factor in some cost to balance the interest of the
Petitioners. In order to do so the Petitioners have factored in the latest price discovered against
such RE power. This is mainly because the future price of such RE sources would be near to
latest price discovered through competitive bidding. Accordingly, the Petitioners have
factored in the marginal balancing cost against such RE sources while determining the Green
Energy Tariff.
4.21 In case consumer opts for Wind Power and say the cost of arranging Wind power is Rs.
4.78/kWh which is as per latest bid price. However, the weighted average power purchase
price from all sources of the Petitioners is Rs. 3.77/kWh which is already being a part of
tariff/ABR. That means, out of additional cost of Rs. 4.78/kWh, Rs. 3.77/kWh will be
recovered from the tariff/ABR. Hence, marginal balancing cost would become Rs. 1.01/kWh
(i.e., Rs. 4.78/kWh- Rs. 3.77/kWh). Similar, marginal balancing cost has been worked out for
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 126
HPO and Other RPO requirements. In addition to the above, the Petitioners have also
submitted that since the actual cost of arranging RE power is not known in advance, therefore
the Petitioners reserve their right to approach the Commission again in case the discovered
price is higher than the existing weighted average power purchase cost being levied through
tariff/ABR.
4.22 Petitioners have also submitted that while arranging RE power it may also happen that the
consumption or demand by the consumer on real time basis is lower than the generation such
as during peak solar hours or night hours when wind generation may be higher. Thus, there
would be large variation during a day between RE generation and consumption on real time
basis. Therefore, even if quantum of RE generation and consumption is matching on monthly
basis, there would be additional cost implication on MPPMCL/Discoms in such
arrangements. Such additional cost implication has been preliminary identified and
categorized by the Petitioners as under
(a) Backing Down Cost of Conventional Generator to absorb RE
(b) Compensation Cost for Scheduling conventional Generator on TMM
(c) DSM Cost
(d) Marginal Balancing Cost
a) Backing Down Cost: As explained in paras above that to satisfy the requisition made
by the consumer for RE power, MPPMCL/DISCOMs would require to contract for at
least 3 to 4 times of their demand. Being an intermittent source in nature it can be
envisaged that during the low demand period of the Distribution licensee (non-rabi
season) and/or of the consumer coupled with sunny days or windy seasons, the
penetration of Solar/wind power would be high. Since, RE power is must absorb
power, there will be more pressure on Distribution Licensee to accommodate RE
power by backing down long-term source of power. Also, considering the 100%
requirement of consumer, the backing down quantum would further increase. The
Distribution Licensee have Long Term PPAs, there is an obligation to pay the fixed
capacity charges to the backed down generators in addition to the compensation and
start-up cost when these generators would again be required. The Petitioners submitted
that such a cost cannot be passed on to other consumers as it would lead to unjust
enrichment of consumers placing requisition for RE power at the cost of others.
Hence, it is necessary to factor such cost in determining the Green Energy Tariff.
The Petitioners submitted that in this Petition, they have proposed additional surcharge
of Rs. 1.44 per kWh for Open Access consumer to meet the fixed cost of the
distribution licensee arising out of his obligation to supply in terms of Section 43 of
the Act. The underlying principle of determination of fixed cost due to stranded power
backed down by the distribution licensee is same in case of additional RE power
requisition by existing consumers or consumer shifting to Open Access. Therefore, to
avoid discrimination between the two, the Petitioners have considered the same rate
as determined for Open Access consumer towards backing down cost, i.e., Rs.
1.44/kWh for determination of Green Energy Tariff.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 127
b) Compensation Cost for Scheduling on TMM: The Petitioners submitted that on
account of high intermittent incidence of RE power, the conventional generating
station would subject to frequent ramp-up and ramp-down to accommodate the
variation in RE generation. Such adhoc operation of generating units results in
degradation of their Heat Rate, Auxiliary Energy Consumption and Secondary fuel oil
consumption due to part load operation etc. Acknowledging this, the Commission vide
its Order dated 29
th
January, 2020 had approved the mechanism for compensation due
to part load operation and multiple start/ stop of such coal based generating units.
Based on the above approved mechanism, State Generators have submitted the station
wise working of compensation ranging from Rs. 0.04/kWh to Rs.0.23/kWh based on
the range of part load operation from 85% to 55%.The Petitioners are paying
compensation cost ranging from Rs. 0.07/kWh to Rs.0.21/kWh to central generating
stations on account of scheduling their stations on TMM. The Petitioners have
considered the average of minimum and maximum compensation rate applicable for
part load operation from 85% to 55% as Rs. 0.14/kWh towards Compensation Cost
for Scheduling on TMM for determination of Green Energy Tariff.
c) DSM Cost: Petitioners submitted that being an infirm nature of power,
MPPMCL/Discoms would also be subjected to DSM charges in some time blocks
howsoever efficient scheduling may be. Such expense incurred by the Petitioners for
arranging RE power based on the requisition placed by the consumers cannot be
passed on to other consumers. Therefore, the DSM charges need to be factored in
while determining the Green Energy Tariff. For ascertaining the DSM charges, the
Petitioners have considered the actual DSM schedule for FY 2021-22, wherein the
average rate for over drawl during the year was Rs. 5.30/kWh and the average rate for
under drawl during the year was Rs. 2.66/kWh. The difference of the same worked
out as Rs. 2.64/kWh which was the net cost incurred by the MPPMCL/Discoms. Since
the incremental impact on account of additional RE injection is not known therefore
at present only 50% of such rate, i.e., Rs. 1.32/kWh has been considered by the
Petitioners towards DSM charges while determining the Green Energy Tariff.
d) Marginal Balancing Cost: As discussed in the above paras that the marginal cost
associated with arranging additional RE power towards RPO compliance of the
consumer needs to be factored in while determining the Green Energy Tariff. In Case
of Wind Power, the Petitioner finds that the latest prudent rate as per last PPA with
Thar Wind Power Projects Pvt. Ltd is Rs. 4.78/kWh. However, through tariff/ABR
Rs. 3.77/kWh is being recovered as weighted average price of total power portfolio of
the Petitioners. Hence, marginal balancing cost would become as Rs. 1.01/kWh (i.e.,
Rs. 4.78/kWh- Rs. 3.77/kWh). Similarly, for Hydro power, the latest levelized Tariffs
for Small Hydro for FY 2022-23 being approved by CERC vide its Order in Petition
No. 14/SM/2022 dated 7
th
November, 2022 is considered as Rs. 5.84/kWh for below
5 MW and Rs. 5.76/kWh for 5 MW to 25 MW. Accordingly, the marginal cost is
arrived at Rs. 2.03/kWh (i.e., Avg (Rs.5.84/kWh+Rs.5.76/kWh) - Rs. 3.77/kWh). In
case of other RPO (mainly Solar and MSW/Bio/Waste to Energy) the latest price
discovered is Rs. 3.26/kWh for Solar in case of SJVN-90 MW bid and Rs. 6.39/kWh
in case of Jabalpur MSW Pvt Ltd and Rewa Waste 2 Energy Pvt Ltd. Accordingly,
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 128
the weighted average discovered price for Other RPO is arrived as Rs. 3.30/kWh.
Therefore, marginal cost is worked out as Rs. (0.47)/kWh.
4.23 The Petitioners submitted that the existing Tariff structure in MP is a two-part Tariff involving
Fixed Charges and Energy Charges which further have multiple slab structure, dynamic fixed
charge billing, computation of monthly minimum charges, fuel cost adjustment, etc. As Green
Energy Tariff can be sought by any consumer having contracted demand or sanctioned load
of 100 kW and above, hence, designing separate categories of Green Energy Tariff for such
consumers will not be suitable as it will lead to complex the existing structure and will
unnecessarily increase the number of Tariff Categories. The Petitioners submitted that in
previous Tariff Petition as well as in present Petition they have proposed Green Energy Tariff
for the purpose of Certification (without RPO Obligation of consumer) which is a premium
added to the existing tariff structure of respective consumers. Hence, on a similar line they
have proposed Green Energy Tariff for RPO obligation of consumer as per MPERC
(Cogeneration and Generation of Electricity from Renewable Sources of Energy),
(Revision)(II), Regulations, 2021 (First Amendment).
4.24 The Petitioners have worked out the incremental cost estimated to be incurred for arranging
Wind Power and HPO and Other RE power for RPO obligation of consumer as explained in
paras above. Further, such cost is nothing but the estimated incremental cost covering the
prudent cost for arranging additional RE power as per MPERC (Cogeneration and Generation
of Electricity from Renewable Sources of Energy), (Revision-II), Regulations, 2021 (First
Amendment) and has been termed as Green Energy Tariff.
4.25 Further. as per Rules, the consumer has an option to place separate requisition for Solar and
Non-Solar Power separately and also as per first amendment to MPERC (Co-generation and
Generation of Electricity from Renewable Sources of Energy) (Revision-II) Regulations,
2021 dated 16
th
January 2023, the RPO will be measured in terms of Wind RPO, HPO, Other
RPO and Storage separately. Therefore, the Petitioners have proposed Green Energy Tariff
separately for Wind RPO, HPO and Others (mainly Solar) as shown in the Table below:
Table 91 : Proposed Green Energy Tariff for RPO compliance of an entity FY 2023-24
Green
Energy
Source
Backing
Down
Charges
Compensation
on TMM
charges
DSM
Charges
Marginal
Balancing
Cost
Green
Energy Tariff
Basis
A
B
C
D
E=Sum (A:D)
Wind
1.44
0.14
1.32
1.01
3.91
Hydro
1.44
0.14
N.A
2.03
3.61
Others
1.44
0.14
1.32
(0.47)
2.43
4.26 The Consolidated proposal of Green Energy Tariff for the purpose of Certification only and
for RPO compliance of an entity is as summarized in the table below
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 129
Table 92 : Proposal for Green Energy Tariff for FY 2023-24
Particular
Green Energy Tariff (Rs./KWh)
For Certification only
For RPO Compliance
Tariff
Wind RPO
HPO
Others
(mainly solar)
Green Energy Tariff for Certification
only (No. RPO compliance of any
consumer)
0.79
-
-
-
Green Energy Tariff for RPO
compliance of an entity
-
3.91
3.61
2.43
4.27 The Petitioners submitted that the above Green Energy Tariff shall be over and above the
existing energy charges applicable for different categories of consumers. Also, in addition to
above Green Energy Tariff, the Demand Charges/Fixed Charges or any other charges as being
approved by the Commission for FY 2023-24 shall also be applicable to the respective
categories of consumer.
Commission’s Analysis
4.28 The Commission in this order considering the submissions of the Petitioner, stakeholders’
comments and provisions of Regulations has separately determined the Green Energy
Charges/Tariff and Modalities for two types of Green Energy transactions as follows:
a) Green Energy Charges and Modalities for consumers availing Green Energy from
Distribution Licensee only for the purpose of reducing their carbon footprint and
seeking Certification to this effect.
b) Tariff for Green Energy and Modalities for consumers availing Green Energy from
Distribution Licensee as per MPERC (Co-generation and generation of electricity
from Renewable sources of energy) Regulations, 2021 and amendments thereof.
a) Green Energy Charges and Modalities for Consumers availing Green Energy from
Distribution Licensee only for the purpose of reducing their carbon footprint and seeking
Certification to this effect.
Applicability
4.29 The Commission introduced Green Energy Tariff in its Tariff Order for FY 2022-23 as an
optional / voluntary arrangement for the consumers who are willing to procure 100% power
from RE sources from DISCOMs for the purpose of reducing their carbon footprint. As per
the information submitted by the Petitioners till November,2022 only one consumer has opted
for Green Energy Tariff.
4.30 The Commission has observed that during the meeting of State Advisory Committee as well
during the public hearings some of the stakeholders have suggested to lower the criteria for
consumption from RE sources from existing level of 100% as per FY 2022-23 Tariff Order
to 10%-20% from Distribution Licenses. The Petitioners in additional submission have
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 130
submitted that consumers are also approaching the DISCOMs for availing Renewable / Green
Energy for occasions like marriage functions fests’ parties etc. on permanent or temporary
connection for shorter durations than a month.
4.31 The Commission after taking cognisance of the Electricity Act, 2003, stakeholders and
Petitioners submission has decided to lower the requirement of consumption from RE sources
from existing level of entire 100% consumption to minimum 25% of their monthly
consumption of electricity during any billing month for availing power from RE sources.
Further, the consumers on a voluntary basis may purchase more power from RE sources and
in such cases, consumers shall be permitted to increase their consumption from RE Power in
steps of 5% of their monthly consumption over and above 25% upto 100% from RE sources
during any billing month.
4.32 In addition to above, such consumers shall also be permitted to avail power from RE sources
for any number of days in a billing month subject to meeting consumption criteria as
mentioned above.
4.33 The consumers shall have to place a requisition for availing power from RE sources with their
respective Distribution Licensee.
Treatment of RPO.
4.34 The RE power supplied by the Petitioners for consumers availing Green Energy from
Distribution Licensee only for the purpose of reducing their carbon footprint and seeking
Certification from Distribution Licensee to this effect shall only be considered towards RPO
compliance of the Petitioners and shall not be considered for fulfilment of RPO for obligated
entities which is in line with the approach adopted by the Commission in MYT Order. If the
consumer is also an obligated entity, then he may make its own arrangement or submit
requisition to Distribution Licensee for procuring RE power from Distribution Licensee for
the purpose of meeting their RPO compliance for entity as per MPERC (Co-generation and
generation of electricity from Renewable sources of energy) Regulations, 2021 and
amendments thereof towards fulfilment of its RPO, separately.
Green Energy Charges
4.35 In accordance with the Section 86(1)(e) of the Electricity Act, 2003, the Commission is
mandated to promote adoption of RE. Therefore, the Commission has determined Green
Energy Charges for the consumers who wishes to procure RE Power for the purpose of
reducing their carbon footprint and seeking Certification to this effect as 75% of the difference
in weighted average rate of RE power and weighted average rate of Energy charge (Variable
Charges) of Non RE sources as shown in the following table:
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 131
Table 93 : Green Energy Charges ( for the consumers who wish to procure RE Power for the
purpose of reducing their carbon footprint and seeking Certification to this effect) approved by
the Commission for FY 2023-24
RE Power Procurement for the
Period FY 2023-24
Non-RE Power Procurement (Only
Variable) for the Period FY 2023-24
Difference between
RE & Non-RE Power
Approved Green
Energy Charges
MU
Rs. Crore
Rs/Unit
MU
Rs. Crore
Rs/Unit
Rs/Unit
Rs/Unit
A
B
C
D
E
F
G = (C – F)
H=G*75%
25,096.85
8,352.17
3.33
64,851.76
13,238.06
2.04
1.29
0.97
b) Tariff for Green Energy and Modalities for Consumers availing Green Energy from
Distribution Licensee from Distribution Licensee as per MPERC (Co-generation and
generation of electricity from Renewable sources of energy) Regulations, 2021 and
amendments thereof.
Applicability
4.36 As per the Regulation 3.8A of the MPERC (Co-generation and generation of electricity from
Renewable sources of energy) Regulations, 2021, any entity, whether obligated or not, may
elect to generate, purchase and consume renewable energy as per their requirements by one
or more of the following methods: -
a. Own Generation from renewable energy sources
b. By procuring Renewable Energy through Open Access from any Developer
either directly or through a trading licensee or through power markets.
c. By requisition from Distribution Licensee
4.37 Accordingly, in this section, the Commission has dealt with the Tariff and modalities of Green
Energy Tariff applicable for entities who elect to consume renewable energy in accordance
with the provisions of Regulation 3.8A(c) of the MPERC (Co-generation and generation of
electricity from Renewable sources of energy) Regulations, 2021 through requisition from
Distribution Licensee.
4.38 Regulation 3.8 (A)(C) (iv) and (v) of MPERC (Co-generation and generation of electricity
from Renewable sources of energy) Regulations, 2021 and amendments thereof also specify
that any requisition for green energy from a Distribution Licensee shall be for a minimum
period of one year and the quantum of green energy shall be pre-specified for at least one
year. Hence the provisions of this Regulation shall be applicable for entities who elect to
consume renewable energy in accordance with the provisions of Regulation 3.8A(c) of the
MPERC (Co-generation and generation of electricity from Renewable sources of energy)
Regulations, 2021 through requisition from Distribution Licensee.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 132
Tariff for Green Energy
4.39 As per the provisions of the Electricity (Promoting Renewable Energy Through Green Energy
Open Access) Rules, 2022 as well as MPERC (Co-generation and generation of electricity
from Renewable sources of energy) Regulations, 2021 and amendments thereof, the
Commission has to determine separate Tariff for Green Energy.
4.40 As per Regulation 3.8(A)(c)(iii) of MPERC (Co-generation and generation of electricity from
Renewable sources of energy) Regulations, 2021 and amendments thereof, the components
for determining Tariff for Green Energy for consumer shall include :
a) Average Pooled Power Purchase Cost of RE
b) Cross Subsidy Charges, if any and
c) Service Charge covering prudent cost of distribution licensee for providing Green
Energy.
4.41 As per provisions of MPERC (Co-generation and generation of electricity from Renewable
sources of energy) Regulations, 2021 and amendments thereof, Green Energy can be
requisitioned by any consumer having contracted demand or sanctioned load of 100 kW and
above.
4.42 The Commission observed that the tariff structure in the State of MP is of two part tariff
involving fixed charges and energy charges which further have multiple slab structure, fixed
charge billing, computation of monthly minimum charges and Fuel and Power Purchase
Adjustment Surcharge (FPPAS), etc, which are applicable for consuming power from
Distribution Licensee. The tariffs approved in this Order covers all the costs of the
Distribution Licensees including power purchase cost from all the sources, element of cross
subsidy charges and all other costs of Distribution Licensee approved as part of ARR which
also includes Service Charges.
4.43 In view of the above and considering the provisions of the Electricity (Promoting Renewable
Energy Through Green Energy Open Access) Rules, 2022 as well as MPERC (Co-generation
and generation of electricity from Renewable sources of energy) Regulations, 2021 and
amendments thereof, the Commission instead of determining separate category wise Tariff
for Green Energy for consumers purchasing Green Energy from DISCOMs has determined
the Green Energy Charges for such consumers based on the incremental cost basis for availing
RE power from Wind, HPO and Others which shall be applicable to consumers over and
above the normal tariff of the respective category as per the provisions of Regulations.
4.44 The Commission observed that the Petitioners while proposing Tariff for Green Energy has
only asked for Green Energy Tariff for RPO compliance of an entity whereas the provisions
of Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules,
2022 as well as MPERC (Co-generation and generation of electricity from Renewable sources
of energy) Regulations, 2021 and amendments thereof provides any consumer may elect to
purchase Green Energy.
4.45 The approach adopted by the Commission for determining Tariff for Green Energy for
consumers electing to purchase Green Energy from DISCOMs is as follows:-
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 133
a) The Average Pooled Power purchase cost of RE sources (Wind, HPO and Others,) and its
contribution in Average Cost of Supply has been worked out separately considering the
normative losses, Intra-State Transmission losses and Inter and Intra State Transmission
Charges as shown in the table below:
Table 94 : Effective Cost of Pooled Power Purchase of RE sources
Particulars
Unit
Wind
HPO
Others
Power Purchase Cost of RE Sources
Rs. Crore
452.99
302.17
7,597.01
Quantum of RE Source
MUs
1,653.05
593.66
22,850.14
Weighted Average Rate of RE Sources
Rs./kWh
2.74
5.09
3.32
Distribution loss
%
15.45%
15.45%
15.45%
RE Source Rate after considering Distribution loss
Rs./kWh
3.24
6.02
3.93
Intra-State Transmission loss
%
2.63%
2.63%
2.63%
RE Source Rate after Considering Intra-State Transmission loss
Rs./kWh
3.33
6.18
4.04
Inter and Intra – State Transmission Charges
Rs./kWh
0.82
0.82
0.82
Contribution of Pooled Power Purchase of RE sources in ACOS
Rs./kWh
4.15
7.00
4.86
b) In order to determine the Cross Subsidy Charges, the difference between ACoS and ABR
of respective tariff categories have been considered.
c) Services Charges pertains to the cost of distribution licensee other than the cost associated
for purchase of power (i.e Other ARR components) and the fixed cost of power purchase
including transmission charges as the power purchase from Renewable Energy is at single
part tariff only. Hence, it is important to consider the fixed cost of power purchase also
while determining the Service Charges of Distribution Licensee.
d) In the Average Cost of Supply approved by the Commission, the contribution of other
components of ARR excluding power purchase cost works out to be Rs 1.25/kWh (i.e Rs.
9,008.37 Crore of Other ARR Components / Sales of 72,136.47 MU*10 ) and the same is
considered as Service Charges covering prudent cost of distribution licensee for supplying
power to the consumers. In case Distribution Licensees procure more power from
Renewable Energy sources to meet the requisitions of consumers opting for procuring RE
power, the thermal capacity contracted by the Distribution Licensees will become
stranded and hence the fixed cost due to stranded power also needs to be considered as
part of Service Charges of Distribution Licensee for providing Green Energy, which
works out to Rs.1.64/kWh (i.e Rs. 11,841.82 Crore as Fixed Cost of Power Purchase
/Sales of 72,136.47 MU*10 ). The Service Charges related to other ARR components and
fixed cost of power purchase takes care of all the other costs, Distribution Licensee will
incur in supplying Green Energy for consumer. Hence, the Commission has not
considered any other cost separately as proposed by the Petitioners while determining the
Tariff for Green Energy.
e) Thereafter, the Green Energy Tariff applicable for different category of consumers for
different RE Sources has been computed considering effective cost of pooled power
purchase cost from RE, Cross Subsidy Charges and Services Charges in accordance with
the provisions of Regulations.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 134
f) Based on the above, incremental Green Energy Charges has been determined (i.e Green
Energy Tariff applicable minus ABR applicable)
4.46 Accordingly, incremental Green Energy Charges for different RE sources and tariff categories
computed is given below:-
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 135
Table 95 : Computation of Incremental Green Energy Charges for consumers for FY 2023-24
Category of consumers
Effective Cost of Pooled
Power Purchase Cost of
RE
(Rs/kWh)
ABR
(Rs/kWh)
Cross
Subsidy
(Rs/kWh)
Services Charges
(Rs/kWh)
Green Energy Tariff Applicable
(Rs/kWh)
Incremental Green Energy
Charges
(Rs/kWh)
Others
Wind
Hydro
Fixed Cost of
Power
Purchase
including
Transmission
Charges
Other ARR
Components
Other
Wind
Hydro
Other
Wind
Hydro
A
B
C
D
E
F
G
H
I=B+F+G+H
J=C+F+G+H
K=D+F+G+H
L=I-E
M=J-E
N=K-E
LV-2: Non Domestic
4.86
4.15
7.00
9.45
2.66
1.64
1.25
10.41
9.70
12.55
0.96
0.25
3.10
LV-3: Public Water Works
6.98
0.19
7.94
7.23
10.08
LV-4: LT Industries
8.99
2.20
9.95
9.24
12.09
LV-5: Agriculture & allied
activities
6.02
(0.77)
6.98
6.27
9.12
LV-6: E-Vehicle/ E-Rickshaws
Charging Stations
6.79
0.00
7.75
7.04
9.89
HV-1: Railway Traction
5.42
(1.37)
6.38
5.67
8.52
HV-2: Coal Mines
8.73
1.93
9.68
8.97
11.83
HV-3: HT Industrial, Non-
Industrial and Shopping Malls
7.55
0.76
8.51
7.80
10.65
HV-4: Seasonal & Non Seasonal
8.42
1.63
9.38
8.67
11.53
HV-5: Irrigation, Public Water
Works and Other than Agricultural
7.85
1.05
8.80
8.09
10.95
HV-6: Bulk Residential Users
7.57
0.78
8.53
7.82
10.67
HV-7: Synchronization and Start-
Up Power
10.95
4.15
11.90
11.19
14.05
HV 8: E-Vehicle/ E-Rickshaws
Charging Stations
6.79
0.00
7.75
7.04
9.89
HV 9: Metro Rail
6.79
0.00
7.75
7.04
9.89
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 136
Treatment of RPO .
4.47 The treatment of RPO for consumers availing Green Energy shall be as per MPERC (Co-
generation and generation of electricity from Renewable sources of energy) Regulations,
2021 and amendments thereof towards fulfilment of its RPO. The Green Energy purchased
by Obligated Entity from Distribution Licensees shall be first considered to meet the
Renewable Power Obligation of the obligated entity. As per Regulation 3.8 (A)(c) (vi) and
(vii) of MPERC (Co-generation and generation of electricity from Renewable sources of
energy) Regulations, 2021 and amendments thereof, the green energy purchased from
Distribution Licensee or from Renewable Energy sources other than Distribution Licensee in
excess of Renewable Purchase Obligation of obligated entity shall be counted towards
Renewable Purchase Obligation compliance of the Distribution Licensee.
Summary of Green Energy Charges
4.48 In view of the above, the summary of Green Energy Charges determined for consumers
availing Green Energy from Distribution Licensee only for the purpose of reducing their
carbon footprint and seeking Certification to this effect and for consumers availing Green
Energy from Distribution Licensee as per MPERC (Co-generation and generation of
electricity from Renewable sources of energy) Regulations, 2021 and amendments thereof
for FY 2023-24 are as follows:-
Table 96 : Green Energy Charges for FY 2023-24
Particular
For availing Green Energy
for purpose of reducing
their carbon footprint and
seeking Certification to this
effect (Rs./kWh)
For availing Green Energy as per MPERC
(Co-generation and generation of
electricity from Renewable sources of
energy) Regulations, 2021 and amendments
thereof. (Rs./kWh)
Green Energy Charges for purpose of
reducing their carbon footprint and
seeking Certification to this effect.
(RPO compliance for DISCOMs)
0.97
Wind
HPO
Others
Green Energy Charges for Consumers *
-
0.25
3.10
0.96
Note:-* In case of Tariff for Green Energy, the applicable terms and conditions of MPERC (Co-generation and generation
of electricity from Renewable sources of energy) Regulations, 2021 and amendments thereof shall be applicable.
4.49 Further, the Green Energy Charges shall be over and above the existing fixed and energy
charges applicable for different categories of consumers. Also, in addition to above Green
Energy Charges, Demand Charges/Fixed Charges or any other charges as being approved by
the Commission in this order shall also be applicable to the respective categories of consumer.
4.50 The revenue earned by the Petitioners from sale of power from Green Energy for purpose of
reducing their carbon footprint and seeking Certification to this effect shall be considered as
Tariff Income at the time of truing up. Such treatment of revenue shall also ensure that the
benefit of same is passed on to other consumers of the State.
4.51 The revenue earned by the Petitioners from sale of power to consumers under Tariff for Green
Energy shall be considered as revenue from sale of power. The Distribution Licensee are
directed to separately maintain tariff category and sub-category wise accounting of no.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 137
of consumers, connected load, sale and revenue from sale under Tariff for Green Energy
for consumers and same shall be shown separately by the Petitioners at the time of truing
up.
4.52 It is to be noted that above arrangements is optional / voluntary and shall only be provided on
the request of the Consumer. The Green Energy Charges and Tariff for Green Energy shall
only be applicable if Consumer wishes to avail power under the respective above
arrangement.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 138
A5: FUEL AND POWER PURCHASE ADJUSTMENT SURCHARGE
Petitioners’ submission
5.1 The Ministry of Power (MoP), Government of India (GoI) vide its notification dated 22
nd
October 2021 has issued Electricity (Timely Recovery of Costs due to Change in Law) Rules,
2021. The said Rules are applicable to Generating and Transmission companies and provide
automatic pass-through of impact in tariff due to Change in Law automatically by a formula.
5.2 As per the notified rules, the condition of prior approval of appropriate Commission for
compensation on account of change in law events has been removed and the same has been
made an automatic pass through to the procurers. As stated earlier the aforesaid rules
applicable for the Generating or Transmission Company, however, did not provide stipulation
regarding the impact of the automatic claim of the Generating or Transmission Company on
the DISCOMs. Acknowledging the fact that DISCOMs will also face revenue constrains on
account of such change in law, if pass through of costs is not done regularly and timely in the
retail tariff, MOP issued a recommendation letter No. 23/23/2021-R&R dated 9th November
2021. In this letter MoP has asked the respective Commissions to formulate a mechanism for
automatic pass through of change in law burden to retail consumers. The relevant extract from
the letter is as reproduced below:
3. Learning from the recent experience and in order to ensure that the power sector does not
face any constraints in maintaining assured power supply to meet the demand, all the
stakeholders in the value chain of power sector must ensure that there is timely recovery
of cost. This involves two steps:
a) The cost pass through by the generating companies to the distribution
companies.
b) The cost pass through from distribution companies to the consumer.
4. .For the lack of a robust mechanism of timely automatic pass through of fuel cost and
transportation cost, the generating companies face constraints in maintaining stock of
fuel during such periods. This results in shortage of supply in the grid which may affect
the power supply to the consumer.
5. Distribution companies face revenue constraints as the corresponding pass through of
cost is not done regularly and timely in the retail tariff. Timely collection of revenue
from consumer would ensure timely payment by the distribution company to the
generating stations and coal companies. This will also help in ensuring availability of
supply to meet the expected increase in demand.
……
7. Some of the states already have formula for fuel surcharge adjustment which is being
used for this purpose. A state wise list of the status of fuel surcharge formula prescribed
by the State Commission is enclosed. This is as per the information submitted by the
SERCs to Forum of Regulators in compliance of the APTEL order. However, this is not
an automatic pass through and there remains need for approval of the State Commission.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 139
The present mechanism leads to delays. It may be changed to provide for automatic pass
through in tariff change in costs on account of change in law/ power purchase costs in
accordance with a formula laid down by the State Regulatory Commissions. The
Discoms will pass through the change in costs according to the said formula whenever
the change in costs due to change in law/power purchase costs occur. Till a suitable
formula is prescribed by the State Commissions the formula given in the Electricity (Timely
Recovery of Costs due to Change in Law) Rules, 2021 may be adopted. After giving effect
to the pass through the Discoms will send the relevant papers/ calculation sheets to the
commissions which shall verify and confirm the Pass through within 60 days. This will
result in less working capital requirements by the Discoms, leading to less costs of power
for the consumers.
……
9. The State Commissions are requested to place the above mechanism in operation with
immediate effect. {Emphasis Added}
5.3 As regard to above, the Petitioners submitted that the very purpose of allowing fuel and power
purchase cost adjustment is to compensate the Distribution Licensee for the increase in power
purchase costs during the year in order to keep its financial liquidity intact. Fuel prices are
generally uncontrollable in nature which varies frequently due to various factor such as
change in policy, taxes, cess, market demand and supply position etc. The generators who
procure fuel need to be compensated for any increase in fuel prices else the generator would
not be in a position to procure enough fuel to satisfy the demand of electricity. Therefore, the
DISCOMs who procures power from the generators, are liable to pay the generators the
increased costs. If DISCOMs are not compensated for such an increase cost during the period,
their liquidity would be affected.
5.4 The Petitioners submitted that Section 62(4) of the Electricity Act, 2003 provides for periodic
tariff adjustment during a year to take care of the variations in fuel prices, as may be specified.
The relevant extract is as reproduced below:-
“No tariff or part of any tariff may ordinarily be amended, more frequently than once in any
financial year, except in respect of any changes expressly permitted under the terms of any
fuel surcharge formula as may be specified.”
5.5 Further, the APTEL in the judgement dated 11.11.2011 in Appeal No. 1 of 2011 issued, inter
alia, the following direction to the State Electricity Regulatory Commissions regarding the
Fuel and Power Purchase Cost Adjustment:
“
Fuel and Power Purchase cost is a major expense of the distribution Company which is
uncontrollable
. Every State Commission must have in place a mechanism for Fuel and
Power Purchase cost in terms of Section 62 (4) of the Act.
The Fuel and Power Purchase
cost adjustment should preferably be on monthly basis
on the lines of the Central
Commission's Regulations for the generating companies but in no case exceeding a quarter.
Any State Commission which does not already have such formula/mechanism in place must
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 140
within 6 months of the date of this order put in place such formula/mechanism.”
{Emphasis
Added}.
5.6 Furthermore, The National Tariff Policy, 2016 states that all power purchase costs need to be
considered legitimate unless it is established that the merit order principle has been violated
or power has been purchased at unreasonable rates.
5.7 Thus, from the above, DISCOMs should be allowed to recover full legitimate power purchase
cost including fixed and variable charges as quickly and as practically as possible. However,
the existing formula specified for computation of the FCA as governed under Regulation 9 of
MYT Regulations, 2021 does not capture the total power purchase cost. It covers only variable
charge component of the total power purchase costs. The DISCOMs therefore deprived the
opportunity to recover the variation in total power purchase cost through the levy of a FCA
every quarter and they have been accumulating the variations on account of power purchase
costs till the end of the respective year, till the accounts are finalized, audited and certified
which is causing a financial burden to the DISCOMs. In addition, the prevailing FCA formula
does not cover the recovery of incremental power purchase cost wherein power purchase has
been made due to factors beyond their control. This includes shortage in supply from the
identified power supply sources in the Tariff Order requiring them to purchase power at a
higher price from the power market or other sources to meet the demand. DISCOMs in their
Tariff Petition have been regularly requesting the Commission to address the aforesaid issues
by providing suitable amendments to FCA formula.
5.8 In addition to the above, the existing FCA recovery mechanism is a quarterly based which
require prior approval of the Commission. As per existing mechanism, the FCA is to be
computed by MPPMCL and the details is required to be submitted before the Commission
before commencement of the billing quarter. After approval of the Commission, FCA charge
shall be leviable in the billing quarter. Therefore, as per the existing mechanism the FCA
charges of say ‘n’ month is allowed to get levied on ‘n+4’ month.
5.9 The Petitioners submitted that the generating and transmission companies have been raising
bills on monthly basis in line with the notified Regulations and Rules. Further, as per the
governing provision of respective PPAs with generators, DISCOMs are obligated to pay the
generators or transmission companies within stipulated time. However, the recovery of the
same from retail consumers of DISCOMs happened generally after 4 to 5 months as per
existing mechanism. As against this DISCOMs were allowed only 2 months of normative
working capital requirements in its Aggregate Revenue Requirement (ARR). This results in
additional interest cost on account of additional working capital requirements due to delay in
recovery of the same beyond the normative time period which is ultimately resulting in
increased power purchase cost for end consumers.
5.10 Further, as regard to existing prior approval mechanism, the Petitioners further submitted that
the DISCOMs have participated in Government of India’s Revamped Distribution Sector
Scheme (RDSS) aimed at improving the financial condition and operational efficiencies of
state-owned DISCOMs. The RDSS is a result linked evaluation scheme. Under the scheme it
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 141
is mandatory for DISCOMs to meet the specified pre-qualifying criteria every year before the
funds can be released under the scheme. Further, to ensure strict compliance of the pre-
qualification criteria, Standard Operating Procedures (SOPs) for States/DISCOMs are being
issued which will help Ministry of Power, Nodal Agencies, State Governments and DISCOMs
achieve and monitor the targets set for themselves under the scheme in time bound manner.
As per “SOPs in respect to important conditionalities under RDSS, LIS, Additional
borrowings etc. to be followed during implementation and evaluation” dated 1
st
July 2022 it
has been directed to State and Discoms to make changes in their policies and procedures to
align with the SOPs prepared on the following areas:
PQ Criteria
SOP
Relevant Clause
State Government to ensure 100% payment of
subsidy for the previous year and advance
payment of subsidy up to current period in
line with section 65 of EA2003 and wipe out
the remaining subsidy amount by the end of
the project period.
100% timely payment of Subsidy
on the basis of correct subsidy
accounting mechanism
3.1
No. of days Payables to Creditors including
Gencos for the year under evaluation is equal
to or less than the projected trajectory as per
results evaluation framework.
Linkage of no. of days Payables for
power purchase with LPS Rules
Automatic pass through of fuel
adjustment cost to achieve
financial sustainability through
elimination of ACS-ARR gap
3.2
3.3
DISCOMs will have ensured that no new
Regulatory Assets have been created in latest
tariff determination cycle.
No new creation of regulatory
assets and treatment of outstanding
regulatory assets
3.4
All Government Departments/Attached
Offices/ Local Bodies/Autonomous Bodies/
Boards/Corporations have made 100%
payment of current electricity dues for the
year under evaluation
Mechanism to ensure 100%
payment of Government
department dues
3.5
5.11 The clause 3.3 of SOPs as mentioned above further stipulate as under:
One of the main reasons for financial stress for DISCOMs is the widening ACS-ARR gap.
There are multiple reasons which contribute to such a gap. However,
States/Regulators/DISCOMs have to work in tandem to bridge this gap and bring it to zero.
This is one of the most critical evaluation criteria of RDSS. Amongst other, measures to be
adopted by States/DISCOMs for elimination of ACS-ARR gap, following steps need to be
taken:
i. All States/DISCOMs to create a mechanism for automatic pass through of fuel cost
adjustment on monthly/quarterly basis in retail tariffs without the need for any prior
approval
ii. All such changes shall be reconciled at the true-up stage by the DISCOMs
iii. DISCOMs to ensure that the ACS-ARR gap follows a downwards trajectory on quarter-
to-quarter basis and it must not increase again after meeting the target set under REF
of RDSS
5.12 The Ministry of Power has issued the draft Electricity (Amendment) Rules, 2022 vide its
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 142
notification no. 23/2/2022-R&R dated 12
th
August, 2022, to amend the Electricity Rules,
2005. The Rule 14 of the said draft proposes that the appropriate Commission shall within 90
days of publication of these Rules, specify a price adjustment formula for recovery of costs,
arising on account of the variation in the price of fuel, or power purchase costs. The impact
in the cost due to such variation shall be automatically passed through in the consumer tariff,
on a monthly basis, using the formula. Such monthly automatic adjustment shall be trued up
on an annual basis by the appropriate Commission.
5.13 Further, the MoP in the said draft Rules has also defined that variation in Fuel and Power
Purchase costs shall mean the increase in cost of power, supplied to consumers, due to change
in Fuel cost, power purchase cost and transmission charge with reference to cost of supply
approved by the State Commission. As the existing FAC recovery mechanism is not in tandem
with the above-mentioned Rules, the same need to be modified.
5.14 In view of the above submission and taking cognizance of MoP letter dated 9th November
2021, Electricity (Timely Recovery of Costs due to Change in Law) Rules, 2021, SOPs under
RDSS and draft Electricity (Amendment) Rules, 2022 the Petitioners requested the
Commission to modify the existing FCA recovery mechanism.
5.15 Since, from now on the generating or transmission companies will be raising bills on monthly
basis considering the automatic impact of change in law claims, hence, the Petitioner proposes
that the FCA charges shall also be calculated on monthly basis for timely recovery of the
legitimate costs.
5.16 The FCA charges associated with say ‘n’ month shall be calculated in the immediate next
month after receiving all the power purchase bills. The calculated FCA shall then be
automatically levied to retails consumers in ‘n+2’ month. After completion of say ‘n quarter’,
the Licensee shall submit the details of FCA calculations incorporating the monthly FCA
computation of ‘n quarter’ to the Commission for its post facto approval. Any adjustment
subsequent to post facto approval of FCA by the Commission would be adjusted in the next
corresponding billing month. This provision will help DISCOMs to pass on the variations
power purchase costs \ to the consumers as quickly and as practically possible.
5.17 Further, as demarcated by the Hon’ble APTEL in the judgement dated 11.11.2011 in Appeal
No. 1 of 2011 and also in National Tariff Policy that the fuel and power purchase cost are
uncontrollable in nature and all power purchase costs need to be considered legitimate.
Further, taking cognizance of draft Electricity (Amendment) Rules, 2022, the formula for
FCA should cover all power purchase costs including variable as well as fixed charge
components.
5.18 The Petitioners submitted modified provisions under Regulation 9 of MYT Regulations, 2021
for towards recovery of FCA in the Petition and requested the Commission to exercise the
power conferred under Regulation 51 and 52 of the MYT Regulations, 2021 to provide
necessary amendments in FCA recovery mechanism as proposed by the Petitioners in the
petition.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 143
Commission’s analysis
5.19 For timely recovery of Power Purchase Cost by Distribution Licensees, the Commission has
notified on 17
th
March, 2023 the First Amendment to MYT Regulations, 2021 and specified
the methodology and formula for Fuel and Power Purchase Adjustment Surcharge (FPPAS)
in terms of Section 62(4) of the Electricity Act, 2003. As per the provisions of the aforesaid
Regulations FPPAS shall be computed and billed to consumers automatically, without going
through regulatory approval process, on a monthly basis, subject to true-up on annual basis.
5.20 The Distribution Licensees shall submit necessary details within 7 days of FPPAS
computation on monthly basis for the information to the Commission.
5.21 The Distribution Licensees shall publish all details including the FPPAS formula, calculation
of monthly FPPAS and recovery of fuel and power purchase adjustment surcharges (
separately for automatic and approved portions) on its website.
5.22 In view of Regulation 9 of the MYT Regulations, 2021 and amendments thereof the
Commission directs the Petitioners to implement provision of the Regulations along with its
associated mechanism /modalities as specified in the MYT Regulations, 2021 and
amendments thereof.
5.23 Further, Petitioners shall show the FPPAS charge separately in the consumer bills.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 144
A6: RETAIL TARIFF DESIGN
Legal Position
6.1 In exercise of the powers vested under Section 61 and Section 62 of the Electricity Act, 2003,
and all other powers enabling in this behalf, the Commission has determined the Aggregate
Revenue Requirement and Tariff for FY 2023-24 for the Petitioners. Due consideration was
given to the submissions made by Petitioners, Stakeholders, suggestions made by State
Advisory Committee and all other relevant material available to the Commission. While
determining tariff for various consumer categories, the Commission has given due
consideration to the relevant provisions of the Electricity Act, 2003, Tariff Policy, 2016, and
relevant Regulations.
Commission’s Approach to Tariff Determination
6.2 ARR for FY 2023-24 is determined on the basis of distribution loss level trajectory specified
in the MYT Regulations, 2021 and amendments thereof and uniform tariff has been
determined for all the three DISCOMs.
Linkage to Average Cost of Supply
6.3 The Commission directed DISCOMs to determine the voltage-wise cost of supply in
compliance to the directives given in the Judgment passed by Hon’ble Appellate Tribunal for
Electricity (APTEL) in Appeal No. 103 of 2010 and IA Nos. 137 & 138 of 2010. In this
regard, Petitioners have submitted that aforesaid Judgment of the APTEL has been challenged
in the Hon’ble Supreme Court of India. However, as per directive of the Commission,
Petitioners have submitted the details of calculation of the voltage-wise cost of supply as per
the methodology provided by the APTEL.
6.4 Petitioners have submitted that the MYT Regulations, 2021 do not provide segregation of
normative losses for the Distribution Licensees into voltage-wise normative losses in respect
of technical and commercial losses. Petitioners have further submitted that determination of
voltage-wise losses would require detailed technical studies of the Distribution network.
Therefore, for the purposes of illustrative computation of voltage-wise cost of supply, the
Petitioners have assumed voltage-wise losses; the data therein is not duly verified and so,
should not be relied upon.
6.5 In view of the above, the Commission has endeavoured to work out indicative category-wise
cross subsidy based on voltage-wise cost of supply in-spite of constraints in segregation of
voltage-wise losses and capital expenditure related costs. As can be seen from the foregoing,
Hon’ble APTEL has concluded that the mandate of the Tariff Policy to limit cross subsidies
within (+/-) 20% of the overall average cost of supply can be applied to determine the category
wise retail tariff. However, determination of voltage-wise cost of supply is required to enable
the Commission to evaluate cross subsidies prevalent at various voltages. The Commission
would thus, be guided by the voltage-wise cost of supply with attempt to gradually reduce
cross subsidies at various voltage levels.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 145
In the absence of requisite data, Hon’ble APTEL has further advised that the power purchase
cost, which is the major component of the DISCOMs’ costs, can be apportioned to different
voltage levels in proportion to the sales and losses at the respective voltage levels. As regards
the other costs such as Return on Equity, Interest on Loan, depreciation, Interest on Working
Capital and O&M costs, etc., these costs can be pooled and apportioned equitably, on pro-
rata basis to all voltage levels.
6.6 The Commission agrees with the Petitioners’ submission that determination of voltage-wise
losses would require detailed technical studies of the distribution network and directs them to
conduct such studies within definite timeframe. As a first step in the direction of working out
category-wise cross subsidy based on voltage-wise cost of supply, the Commission has
attempted to determine the same based on the methodology proposed by the Petitioners. The
voltage-wise cross subsidy so computed is indicative in nature and not accurate, as the base
data for the same needs to be worked out based on actuals. The Commission has adopted the
following methodology for determination of voltage-wise cost of supply:
(i) Voltage-wise cost of supply has been computed for above 33 kV and 33 kV
and 11 kV (inclusive of LT) categories only.
(ii) Sales as admitted by the Commission for above 33 kV and 33 kV and 11 kV
(inclusive of LT) categories have been considered.
(iii) Losses as specified in the MYT Regulations, 2021 and amendments thereof for
FY 2023-24 have been considered for the Petitioners.
(iv) Total losses as admitted by the Commission have been segregated voltage-wise
for above 33 kV, 33 kV and 11 kV (inclusive of LT) in the same proportion of
losses as submitted by the Petitioners.
(v) Power purchase costs at the DISCOMs periphery for above 33 kV, 33 kV and
11 kV (inclusive of LT) based on the voltage-wise input energy have been
considered. All other costs of the DISCOMs are allocated based on the sales to
each voltage-level.
(vi) Voltage-wise total cost derived has been divided by voltage-wise sales for
working out the voltage-wise cost of supply.
6.7 Based on the above methodology, the Commission has computed the indicative voltage-wise
cost of supply and commensurate cross-subsidy as shown in the table below:
Table 97 : Computation of voltage-wise cost of supply for the State for FY 2023-24
State
Units
EHT System
(400 kV, 220
kV, 132 kV &
66 kV)
33 KV
System
11 KV +
LT
System
Total
Sales admitted
MU
5,923.80
9,844.72
56,367.95
72,136.47
Technical and Commercial losses
%
3.53%
4.17%
11.28%
19.80%
Energy input admitted
MU
6,140.28
10,649.04
73,159.29
89,948.62
Energy lost admitted (Technical up to 33kV and 11 kV +
LT- technical and commercial)
MU
216.49
804.33
16,791.34
17,812.15
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 146
State
Units
EHT System
(400 kV, 220
kV, 132 kV &
66 kV)
33 KV
System
11 KV +
LT
System
Total
Commercial loss assumed as 50% of 11kV and LT
overall losses
MU
8,395.67
Commercial losses apportioned for all voltage in
proportion to voltage wise sales admitted
MU
689.45
1,145.79
6,560.43
8,395.67
Net Energy Loss admitted
MU
905.93
1,950.11
14,956.10
17,812.15
Net energy input for Computing VCoS
MU
6,829.73
11,794.83
71,324.06
89,948.62
Power Purchase Costs - allocated based on voltage-wise
losses net energy input
Rs. Crore
3,035.98
5,243.08
31,705.23
39,984.29
Other costs - allocated based on voltage-wise sales
Rs. Crore
600.12
1,036.40
6,267.16
7,903.68
Less: Other income - allocated based on voltage-wise
sales
Rs. Crore
32.14
55.51
335.64
423.29
Recoveries of Past Years
Rs. Crore
116.02
200.36
1,211.61
1,527.99
Total Costs (ARR requirement) for FY 2023-24
Rs. Crore
3,719.98
6,424.34
38,848.35
48,992.66
VCoS
Rs. /Unit
6.28
6.53
6.89
6.79
6.8 Consumer category-wise approximate cross-subsidy, computed based on voltage-wise cost of
supply for FY 2023-24 is shown in the table below:
Table 98: Cross-subsidy based on voltage-wise cost of supply for FY 2023-24 for the State
Tariff Categories
VCoS
(Rs. /Unit)
Average Billing
Rate
(Rs. /unit)
Ratio of Average Billing
Rate to Voltage-Wise
Cost of Supply (%)
LV-1: Domestic
6.89
6.49
94%
LV-2: Non-Domestic
6.89
9.45
137%
LV-3: Public Water Works & Street Light
6.89
6.98
101%
LV-4 LT Industries
6.89
8.99
130%
LV 5: Agriculture and Allied Activities
6.89
6.02
87%
LV 6: E-Vehicle/ E-Rickshaws Charging Stations
6.89
6.79
99%
HV-1: Railway Traction
6.28
5.42
86%
HV-2: Coal Mines
6.41
8.73
136%
HV-3.1: Industrial
6.46
7.86
122%
HV-3.2: Non Industrial
6.62
9.07
137%
HV-3.3: Shopping Malls
6.55
8.40
128%
HV-3.4: Power Intensive Industries
6.41
5.48
86%
HV-4: Seasonal & Non Seasonal
6.60
8.42
128%
HV-5: Irrigation, Public Water Works and Other than Agricultural
6.43
7.85
122%
HV-6: Bulk Residential Users
6.56
7.57
115%
HV-7: Synchronization and Start-Up Power
6.39
10.95
171%
HV 8: E-Vehicle/ E-Rickshaws Charging Stations
6.53
6.79
104%
HV 9: Metro Rail
6.28
6.79
108%
Total
6.79
6.79
100%
6.9 While determining the tariffs for FY 2023-24, the Commission has given due consideration
to the provision of the Electricity Act, 2003 that consumer tariffs should reflect the cost of
supply. The average cost of supply for FY 2023-24 works out to Rs. 6.79 per unit as against
Rs. 6.68 per unit for FY 2022-23. The table below shows the cost coverage (Average
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 147
realization as percentage of Average cost of supply) on account of tariff for FY 2023-24, as
compared to the cost coverage in the Tariff Order for FY 2022-23:
Table 99: Comparison of tariff v/s overall average cost of supply
Category/ Sub-category
Average Realisation as % of Average CoS
Average
Billing Rate
(ABR)
(Rs. /Unit)
Average Cost of
Supply (ACoS)
(Rs. /Unit)
FY 2022-23
FY 2023-24
(as per Tariff
Order)
(Achieved as per this
Tariff Order)
LV- Categories
6.79
LV-1: Domestic
95%
96%
6.49
LV-2: Non-Domestic
137%
139%*
9.45
LV-3: Public Water Works & Street Light
104%
103%
6.98
LV-4 LT Industries
144%
132%
8.99
LV 5: Agriculture and Allied Activities
88%
89%
6.02
LV 6: E-Vehicle/ E-Rickshaws Charging Stations
90%
100%
6.79
Total LT
96%
96%
6.54
HV- Categories
HV-1: Railway Traction
78%
80%
5.42
HV-2: Coal Mines
131%
128%
8.73
HV-3.1: Industrial and Industrial and HV-3.4:
Power Intensive Industries
112%
109%
7.40
HV-3.2: Non Industrial and HV-3.3: Shopping
Malls
139%
133%
9.01
HV-4: Seasonal & Non Seasonal
109%
124%*
8.42
HV-5: Irrigation, Public Water Works and Other
than Agricultural
109%
116%*
7.85
HV-6: Bulk Residential Users
104%
111%*
7.57
HV 8: E-Vehicle/ E-Rickshaws Charging Stations
97%
100%
6.79
HV 9: Metro Rail
-
100%
6.79
Total HT
114%
112%
7.61
Total (LT + HT)
100%
100%
6.79
Note:- * Average Realisation as % of ACoS is increasing as compared to pervious year mainly because growth in the
connected load/ demand outnumbers growth in Sales resulting in increase in revenue from fixed charges.
6.10 Hon’ble APTEL in its Judgment dated 9
th
January, 2017 in the matter of Appeal No.134 of
2015 observed that the State Commissions while issuing the Retail Supply Tariff Orders and
for purpose of avoiding tariff shocks to the consumers, should identify the roadmap for
reduction of cross-subsidies. The Commission has been consciously making efforts over the
past several years to reduce the cross-subsidy levels across all consumer categories.
6.11 After giving due consideration to the suggestions/ comments of the Stakeholders and the
proposals submitted by the DISCOMs, the Commission has made some changes in the tariff
design for FY 2023-24. Main features of the tariff design are detailed in following paragraphs:
i. Minimum Charges: For LV-1: Domestic Consumers minimum charges have been
abolished.
ii. Norms for flat rate Agricultural Consumers:- The consumption norms for the flat rate
Agricultural Consumers have been retained.
iii. Online Payment Rebate: Rebate of 0.50%, without any ceiling on maximum rebate
amount for eligible LV-1: Domestic consumers has been retained. The Consumers bill
paid by consumers through RTGS/NEFT transaction shall also be eligible for the online
bill payment rebate.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 148
iv. Tariff for E-vehicles/E-Rickshaw charging stations: The tariff for E-vehicles / E-
rickshaw charging stations has been modified from Two-Part Tariff to Single Part tariff
in accordance with the MoP notification No. 12/2/2018-EV (Comp No. 244247) dated
14
th
January 2022 regarding “Charging infrastructure for Electric Vehicle (EV) – the
revised consolidated Guidelines & Standards”.
v. Introduction of peak period in ToD slots:- The Commission introduced peak period
ToD slots in the Tariff order for facilitating banking of energy.
vi. Introduction of Separate Tariff Category for Metro Rail: The Commission has
introduced a separate tariff category for Metro Rail.
vii. Incentive for advance payment: Incentive for advance payment for LT and HT
Consumer category has been linked with annual interest rate of working capital.
viii. Metering Charges: No metering charges are levied.
ix. Green Energy Charges/Tariff: The Commission has determined Green Energy
Charges for consumers availing Green Energy from Distribution Licensee only for the
purpose of reducing their carbon footprint and seeking Certification to this effect of
Rs.0.97/kWh and Green Energy Charges for consumers availing Green Energy from
Distribution Licensee as per MPERC (Co-generation and generation of electricity from
Renewable sources of energy) Regulations, 2021 and amendments thereof at Rs. 0.25/
kWh for Wind, Rs. 3.10/ kWh for HPO and Rs. 0.96/ kWh for Other, which shall be
over and above the normal tariff of respective consumer category as per this Tariff Order.
x. Rebate to existing HV 3 category consumers (all sub-categories): The rebate for
incremental consumption for HV -3 category consumers (Industrial, Non -industrial,
Shopping Malls and Power Intensive) has been extended at Rs. 1 per unit for the
incremental consumption.
xi. Other rebates for HV 3 category consumers: The duration of rebate for captive power
plant consumers, open access consumers and rebate for conversion of existing LT
Industrial/Non-domestic connection to corresponding HT connection has been extended
to FY 2023-24.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 149
A7: COMPLIANCE OF DIRECTIVES ISSUED IN TARIFF ORDER FOR FY
2022-23
The response submitted by DISCOMs on the directives issued by the Commission in the Retail
Supply Tariff Order for FY 2022-23 and the Commission’s observations/directions thereon are
given below:
7.1 Meterisation of Unmetered Connections
Commission’s Directives:
The Commission has noted the submission of DISCOMs and has obtained the latest reports from
them. The Commission has observed that the progress of the DISCOMs regarding DTR
meterisation is not satisfactory. The Commission further directs the DISCOMs to expedite DTR
meterisation. The Commission has observed that simply providing meters is not the total solution
but the DISCOMs need to have a complete energy auditing solution in order to monitor the energy
pilferage. The DISCOMs shall continue submitting the quarterly progress reports on DTR
meterisation along with the energy Audit. With regards to submission of action plan Commission
observed that Petitioners have not submitted the Action Plan. Therefore, Petitioners are directed
to submit an action plan within 6 months of issuance of this Order.
East DISCOM Submission:
The meterisation of DTRs is not covered in any ongoing/sanctioned scheme. Due to difficult
financial condition of the company and in absence of financial assistance from any financial
institution/Govt, the required progress could not be achieved on the matter. However, under
recently launched RRRDS scheme, the meterisation of non-Agriculture DTRs have been covered
and the action is being taken to implement the scheme as soon as possible. The Quarterly report
(March, 2022) of Agricultural predominant DTR is submitted to the Commission vide letter no.
EZ/WS/949 dated 20.06.22. The quarterly report is being submitted to Commission regularly.
As on 31
st
March, 2022 only 3,11,497 unmetered DLF (Domestic Light and Fan) connections are
remaining to be metered. In view of the installation of smart meters, the plan of providing meters
on unmetered DLF connections is as given below-
Central DISCOM Submission:
The Petitioner submitted that due to paucity of fund the meterisation of Rural Domestic unmetered
consumers have not been completed. Under RDSS smart meter project approx. 9.57 Lacs meters
shall be replaced. After replacement of the old meters with smart meters, these will be re-issued
for installation on domestic Unmetered category in Rural areas. Provision for meterisation of
Balance
unmetered DLF
connections as
March 2022
Qtr. wise meterisation plan for FY 2022-23
Q-1
Q-2
Q-3
Q-4
3,11,497
10,000
10,000
10,000
25,000 no’s to be taken up
under RDSS scheme through
installation of smart meters.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 150
Agriculture DTR is made in RDSS which will be achieved as per timeline of the scheme.
West DISCOM Submission:
As on date following is the status of DTR Meterisation:
DISCOMs
Total No.
of DTs
Metered DTs
(Till 31.03.2022)
Unmetered DTs (Till
31.03.2022)
% of
Metering
MPPKVVCL
2,95,166
57,956
2,37,210
20%
Urban
36,311
16,034
Rural
2,58,855
41,922
Total back log of unmetered DTR as follows:
MPPKVVCL
Total Non-Agriculture DTR
Total Agriculture DTR
No. of DTRs
Metered DTRs
No. of DTRs
Metered
DTRs
1,07,863
37,676
1,87,303
13,997
In accordance with the Gazette Notification no. 18/1/BEE/DISCOM/2021 dated 06.10.2022 the
DISCOM has to complete the meterisation of DTRs as per the following road map.
Targets for functional meters
At present a scheme RDSS has got underway in the MPPKVVCL, Indore in the phased manner
i.e., phase I (up to March 2023) and Phase II (up to December 2023). Accordingly, after
commissioning of smart meters with AMI feature and their networking, the manual intervention
free energy audit report at all voltage level will be generated and submitted to the BEE, New Delhi
and SDA (MPUVN, Bhopal). Also as provisioned in the Gazette Notification no.
18/1/BEE/DISCOM/2021 dated 06.10.2022, annual energy audit report will be submitted in time
to all recipients. The Petitioner submitted that the meterisation of predominately agriculture DTRs
has already been incorporated in the capex plan of the DISCOM for the FY 2020-21 to FY 2024-
25. The said work for DTR meterisation shall be executed depending upon the availability of the
funds.
Commission’s Observations/ Directions:
The Commission has noted the submission of DISCOMs and has obtained the latest reports from
them. The Commission has observed that the progress of the DISCOMs regarding DTR
meterisation is not satisfactory. Metering provisions have generally been there in earlier schemes
also. DISCOMs have not given details of DTR mandatory under previous scheme. The
Commission directs the DISCOMs to expedite DTR meterisation. Further, the Commission
observed that simply providing meters is not the total solution, DISCOMs need to have a complete
energy auditing solution in order to monitor the energy pilferage. Therefore, DISCOMs shall
continue submitting the quarterly progress reports on DTR meterisation along with the energy
Audit. It is mandatory to conduct energy audit in accordance with Bureau of Energy Efficiency
(BEE) (Manner and Intervals for Conduct of Energy Audit in Electricity Distribution Companies)
Regulations, 2021. Except West DISCOM other two DISCOMs have not submitted any details in
this regard. East and Central DISCOMs are directed to have energy audit mechanism in place so
Meter
FY 2022-23
FY 2023-24
FY 2024-25
DT Metering
90%
95%
98%
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 151
as to submit annual energy audit report to all recipients in time as per BEE Regulations.
As regard to submission of action plan the Commission observed that Petitioners have not
submitted the Action Plan. Therefore, Petitioners are directed to submit an action plan within
3 months of issuance of this Order.
7.2 Accounting of Rebates/Incentives/Surcharges
Commission’s Directives:
The Commission has noted the submissions of DISCOMs and directs DISCOMs to expedite the
process of development of a report and submit the same on quarterly basis. Further, the
Commission has extended applicability of various rebates in this Order. Accordingly, the
Petitioner is directed to undertake study with analysis to ascertain the impact of various
incentive/rebate/surcharge being allowed by the Commission in tariff order. Further, the analysis
should cover scenarios for Rabi & Non-Rabi Seasons, separately and also scenario where no
incentive/rebate are provided in tariff. Petitioners are directed to submit the above study by next
petition filling.
East DISCOM Submission:
A detailed report in this regard for Q3 and Q4 of FY 22 is already submitted to the Commission
vide letter no. MD/EZ/CGM(Comm.)/591 dtd 28.07.2022. The net impact of the incentive and
surcharge are adding advantages to consumers thereby increasing DISCOMs business. From the
detailed analysis it can be seen that the incentives not only help DISCOM in growth of energy sales
but also in retaining/addition of High valued consumers from obtaining open access.
Central DISCOM Submission:
In line with the provisions of Tariff Order rebates/incentives are provided to HT consumers
(Industrial/Non-Industrial) on monthly basis. The FY-Wise amount is tabulated as below:
Type of Rebate/
Incentives
FY2021-22
FY 2022-23 (up to Sep-2022)
Amount (in Rs
crore)
Amount (in Rs crore)
TOD-Rebate
143.02
39.57
Incremental unit Rebate
91.67
47.94
Captive Rebate
57.55
26.72
Greenfield Rebate
10.01
4.65
NSC Rebate
10.33
10.14
Online payment rebate
1.68
0.76
Prompt payment rebate
2.12
0.95
advance payment rebate
0.01
0.01
Subsidy
43.66
10.58
West DISCOM Submission:
The Summary of incentive/surcharge for consumers given during the FY 2021-22 and FY 2022-
23 up to (July, 2022) is as under:
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 152
Commission’s Observations/ Directions:
The Commission has noted the submissions of DISCOMs and directs DISCOMs to expedite the
process of development of a report and submit the same on quarterly basis. The Commission has
extended applicability of various rebates in this Order. The Commission observed that the
Petitioners have not submitted proper analysis to ascertain the impact of various
incentive/rebate/surcharge being allowed by the Commission in tariff order. Therefore, the
Commission once again directs the Petitioners to undertake study and analysis to ascertain the
impact of various incentive/rebate/surcharge being allowed by the Commission in tariff order and
submit the above study accompanied by analysis before next petition filling.
7.3 Technical studies of the Distribution network to ascertain voltage-wise cost of supply
Commission’s Directives:
The Commission has been continuously directing Petitioners to submit the study reports. However,
in every year petition, Petitioners are submitting same response that it will be submitting shortly.
This lackadaisical approach of the Petitioners is not acceptable and amounts to non-compliance
of directives. Further, Regulation 26.7 of the MYT Regulations, 2021, specifies as follows:
“26.7. The Distribution Licensee shall also propose voltage wise losses for each year of the
Control Period for the determination of Voltage-wise Cost of Supply. The Distribution Licensee
shall be required to conduct the energy audit on representative sampling basis to segregate
technical (i.e., Ohmic/Core losses in the lines, substations and equipment) and Commercial Loss
(i.e., unaccounted energy due to metering inaccuracies/inadequacies, pilferage of electricity etc.).
The Distribution Licensee(s) shall submit the first report on segregation of technical and
Particulars
Total Amount in Rs Crore
FY 2021-22
FY 2022-23 (Up to July 22)
Surcharge recovered from
consumer (Rs. Crore)
Power Factor Surcharge
594.39
146.37
Late Payment Surcharge
260.09
70.83
Total surcharge
Recovered
854.48
217.21
Rebate/Incentive provided
to consumer (Rs. Crore)
Power Factor Incentive
224.10
89.89
Load Factor Incentive
5.04
2.06
Time of Day Incentive
203.52
45.90
Prompt Payment Incentive
3.09
1.45
Captive Incentive
49.83
16.42
Green Field/NSC Rebate
123.15
49.07
Advance Payment Incentive
3.07
2.38
Incremental Rebate
94.17
40.12
Online Payment Rebate
11.92
4.88
Total Rebate
717.88
252.17
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 153
commercial losses within one year from the date of notification of these Regulations. From FY
2023-24 onwards, the Distribution Licensee shall be required to submit detailed information for
each year on Voltage-wise Distribution Losses segregating them into technical loss and
Commercial Loss to the Commission.”
In view of above, Commission directs the Petitioners to submit the comprehensive study as per
above Regulations along with the next tariff petition. Non submission of report will tantamount to
non-compliance of the Commission’s direction and the Commission may take appropriate action
against DISCOMs
East DISCOM Submission:
Comprehensive study report on Technical and Commercial loss segregation at sub transmission
and distribution level using GIS asset mapping is already submitted to Commission vide letter No.
EZ/CGM/Comml/Trac/214 Jabalpur dtd. 20.05.2022.
Central DISCOM Submission:
The petitioner submits that the study shall be carried out through third party agency to ascertain
voltage wise cost of supply, and after that company shall be providing the information to
Commission.
West DISCOM Submission:
As per the Gazette Notification no. 18/1/BEE/DISCOM/2021 dated 06.10.2022 the MPPKVVCL,
Indore would be able to get annual energy audit done with the services of accredited energy
auditor, once the meterisation of consumer/ DTRs and feeders is complete under RDSS scheme.
The periodic as well as annual energy audit report covers up voltage wise energy losses, account
in respect of MPPKVVCL, Indore. As per the schedule of proposed RDSS works, it is expected
that meterisation will be completed by December 2023. So, annual energy audit report would be
available from FY 2023-24 onwards. The petitioner further submits that consulting agency PWC
was directed to conduct a study on sample basis considering the directives of the Commission.
Consultant has submitted its draft Report and the same is being submitted to the Commission in
soft copy separately. Here, it is noteworthy to mention that results in the aforesaid study are based
on sample feeder selected and these results may vary from the actual technical losses in the entire
network of DISCOM on the account of following factors:
• Length of the feeder
• Overloading of the feeder
• Power factor
• Conductor type
• DTR type
• Loading during season and off season of agricultural feeders.
Commission’s Observations/ Directions:
The Commission has noted the submissions of DISCOMs. However, the Commission observed
that the study reports are not accordance with Regulation 26.7 of the MYT Regulations, 2021 and
amendments thereof. In view of above, Commission directs the Petitioners to submit the
comprehensive study as per Regulations 26.7 of the MYT Regulations, 2021 and amendments
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 154
thereof along with the next tariff petition. Further, the Petitioners are directed to submit
methodology of the study and get it approved by the Commission within 2 months of issuance of
this Order.
7.4 Transfer of Funds to Pension & Terminal Benefit Trust Fund
Commission’s Directives:
The Commission has noted the submission of the Petitioners and directs the Petitioners to continue
with deposit of the amount against the Terminal Benefit Trust Fund allocated in this Tariff Order
on monthly basis as per Commission order dated 11
th
May, 2021. Further, the Petitioners are also
directed to deposit the amount which has been allowed in the previous orders.
East DISCOM Submission:
The Commission in its tariff order for FY 22-23 allowed Rs.70 Crore to be deposited against
Terminal Benefit Trust fund. In this regard it is submitted that the details of amount deposited in
TBT Fund for the month of April 2022 to June 2022 has already been submitted to Hon’ble
Commission vide MD/EZ/CGM(Comml.)/591 dated. 28.07.22.
Central DISCOM Submission:
It is submitted that the desired information shall be submitted to the Commission separately within
short period of time.
West DISCOM Submission:
The Company is transferring the funds to Pension & Terminal Benefits trust Fund on regular basis.
Whenever the company receives funds from MP Power Management Company to deposit the
same in Pension & Terminal Benefit Trust Fund as per Cash Flow Management of Company, the
same is transferred in the TBT Fund. The Company has deposited an amount of Rs. 273 Crore
from 12.07.2019 to 23.08.2022 in Pension & Terminal Benefit Trust Fund. In future also
whenever the Company will receive fund from MP Power Management Company to deposit in
Pension & Terminal Benefit Trust Fund, the same shall be deposited in time in the TBT Fund.
Commission’s Observations/ Directions:
The Commission has noted the submission and directs the Petitioners to continue with deposit of
the amount against the Terminal Benefit Trust Fund allocated in this Tariff Order on monthly basis
as per Commission order dated 11
th
May, 2021. Further, the Petitioners are also directed to deposit
the amount which has been allowed in the previous orders.
7.5 Replacement of Stopped and Defective Meters
Commission’s Directives:
The Commission has noted the submission of the Petitioner. It is observed that the Petitioners have
been submitting the quarterly progress report to the Commission.
East DISCOM Submission:
Quarterly Report (June 21 to June 22) of stopped/defective meters is has already been submitted
to Commission vide letter no. MD/EZ/CGM(Comml.)/1132 dated 03.11.22.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 155
Central DISCOM Submission:
It is submitted that the desired information shall be submitted to Commission separately within
short period of time.
West DISCOM Submission:
The petitioner submits that the progress report is being submitted regularly to the Commission
through the quarterly MIS.
Commission’s Observations/ Directions:
The Commission has noted the submission and directs the Petitioners to submit the quarterly
progress report to the Commission.
7.6 Alignment of R-15 strictly with the categories, subcategories, and slabs of the Tariff Schedule
as per the new Tariff Structure
Commission’s Directives:
The Commission has taken note of the Petitioners submission. The Commission directs the
Petitioners to keep submitting the R15 statement aligned with rate schedule on quarterly, half
yearly and annual basis. Further, the Petitioners should also submit the reconciliation of sales,
connected load and number of consumers as per the old and new R15 statement.
East DISCOM Submission:
Month wise, Tariff Wise R15 (Jan 22 to Sep 22) along with old and new R15 statement has been
submitted to Commission vide letter no. MD/EZ/CGM (Comml) /1132 dated 03.11.22.
Central DISCOM Submission:
The Petitioner submitted that the guidelines of the Commission shall be followed.
West DISCOM Submission:
The Petitioner submitted that the compliance in this regard has been submitted before the
Commission vide letter No. 9967 Indore dated 13.07.2022. As directed by the Commission
petitioner would submit the R-15 statement on quarterly, half yearly and annual basis regularly.
Commission’s Observations/ Directions:
The Commission has taken note of the Petitioners submission. The Commission observed that R-
15 statement submitted by the Petitioners for the projections of Sales, Connected load and No. of
Consumers are not aligned with the tariff schedule. In view of the above, the Commission once
again directs the Petitioners to completely align R-15 report with the tariff schedule approved by
the Commission and submit the R-15 report for FY 2022-23 and FY 2023-24 (upto September) in
next tariff petition.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 156
7.7 Capital Expenditure and Capitalisation details
Commission’s Directives:
The Commission has observed that the Petitioners have submitted Fixed Assets Registers upto FY
2020-21. Although, the Petitioners have submitted the Fixed Asset Registers however, the same is
not completely in accordance to the format specified by the Commission and observed that the
Petitioners have not been able to link the individual assets details with its cost in years prior to FY
2020-21 in Fixed Asset Registers. The Petitioners have provided the quantity against the assets in
cumulative manner, separately. Further, During Technical Validation Session, the Petitioners
informed the Commission that from FY 2020-21 onwards, they are keeping record of the individual
assets separately and accordingly, the Petitioner shall be submitting the Fixed Asset Register in
the desired format during the next tariff and true up petitions. The Commission has taken note of
the Petitioner submission. The Commission directs the Petitioners to submit the Fixed Asset
Register as per format specified by the Commission in next tariff petition.
East DISCOM Submission:
Scheme wise information for FY 2021-22 and capitalization details has already been submitted to
the Commission vide letter no. MD/EZ/CGM(Comml)/1207 dated 16/11/2022.
Central DISCOM Submission:
It is submitted that the desired information shall be submitted to the Commission separately within
short period of time.
West DISCOM Submission:
The Petitioner submits that company has already provided the Fixed Asset Register upto FY
2020-21 in a format prescribed by the Commission. Also, the company has submitted the details
of quantity of Assets upto FY 2020-21 separately. Further, the company is in process of
maintaining all details of assets separately from the FY 2021-22. As directed by the Commission
the Fixed Asset Register in the prescribed format shall be submitted at time of True up of FY 21-
22.
Commission’s Observations/ Directions:
The Commission has observed that the Petitioners have submitted Fixed Assets Registers upto FY
2021-22. Although, the Petitioners have submitted the Fixed Asset Registers, however, the same
is not completely in accordance to the format specified by the Commission and it is observed that
the Petitioners have not been able to link the individual asset details with its cost in years prior to
FY 2021-22 in Fixed Asset Registers. The Petitioners have provided the quantity against the assets
in cumulative manner, separately. The Commission once again directs the Petitioners to submit
the Fixed Asset Register as per format specified by the Commission in next tariff petition.
7.8 Submission of report to ascertain the Consumption of Agricultural pumps
Commission’s Directives:
It is observed that the Petitioners have submitted details of consumption of sample agricultural
feeder. However, the Petitioners have not submitted the detailed report detailing the methodology
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 157
adopted for selection of sample feeders, energy audit report of the selected feeders etc. as per the
direction of the Commission. Therefore, the Commission once again directs the Petitioners to
submit report to ascertain the consumption of irrigation pumps based on detailed report for the
representative sample agriculture feeders along with sample energy audit on predominantly
agricultural DTRs in all the three DISCOMs justifying their claim in the next tariff filing/ true-up
to the satisfaction of the Commission.
East DISCOM Submission:
As regards the ascertainment of the consumption of irrigation pumps, the East DISCOM already
submitted a detailed report of Study Conducted for Narsinghpur Circle to the Commission vide
letter dated 12.11.2021.
However, the Commission has given a direction in Tariff Order for FY 2022-23 to submit report
to ascertain the consumption of irrigation pumps based on detailed report for the representative
sample agriculture feeders along with sample energy audit on predominantly agricultural DTRs in
all the three DISCOMs justifying the claim in the next tariff filing/ true-up i.e., Tariff Petition for
FY 2023-24 to the satisfaction of the Commission.
East DISCOM submitted that Commission convened a meeting with East DISCOM on 6th
September 2022 for the status of the compliance to the directives issued in the Tariff Order for FY
2022-23.
As agreed in the meeting, Commission suggested for conducting the detailed study to ascertain
the consumption of irrigation pumps with reference to Study conducted in Maharashtra State. It
was directed to form a committee comprising Nodal Officer each from the Commission,
DISCOMs and MPPMCL for this purpose. In this regard, East DISCOM appointed Mr. Kuldeep
Kumar Dubey, DGM (Energy audit) O/o CGM (Commercial) as Nodal officer for assistance
during the study as instructed by the Commission 19/09/2022. Copy of the letter no. 1183 dated
10.11.2022 vide which nodal officer has been appointed has also been forwarded to the
Commission.
Central DISCOM Submission:
The petitioner submitted that the study as per the Commission shall be carried out through third
party agency for which a joined committee shall be formed with members from all the three
DISCOMs, MPPMCL, and GOMP Energy Department. A nodal officer has been appointed by
Central DISCOM as per Commission’s directive.
West DISCOM Submission:
The Petitioner submitted that a study considering the data of 1632 Nos. agriculture feeders of 15
districts under West DISCOM jurisdiction for FY 2020-21 has been submitted to the Commission
vide letter No. 2763 Indore dated 23.02.2022.
Commission’s Observations/ Directions:
It is observed that East and Central DISCOMs have appointed nodal officer for the study, whereas
West DISCOMs has resubmitted the report of earlier study conducted by them. Therefore, the
Commission once again directs the Petitioners to submit report to ascertain the consumption of
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 158
agriculture pumps based on representative samples of agriculture feeders along with sample energy
audit on predominantly agricultural DTRs in all the three DISCOMs justifying their claim in the
next tariff filing/ true-up to the satisfaction of the Commission.
7.9 Action Plan for Line Loss reduction
Commission’s Directives:
The Commission appreciates the efforts made by the West DISCOM, however, it has been
observed that the distribution losses submitted by other two DISCOMs are above loss level
specified by the Commission. East and Central DISCOMs progress is far from satisfactory. There
is a huge gap between the targeted losses and actual losses. These DISCOMs are losing huge
amounts against these losses as the Commission has been allowing only the normative losses to
be passed on to the consumers. The Commission opines that it is very necessary and expedient to
go into the details of suboptimal performance of the DISCOMs. Further, Commission observed
that Petitioners have not submitted the detailed action plan detailing the methodology that
Petitioners will be adopting for reduction in losses. Therefore, Commission directs DISCOMs to
submit a detailed action plan to reduce the losses. The Commission also directs the DISCOMs to
submit quarterly progress reports in this matter. Further, the DISCOMs should note that as per
the Commission MYT Regulations, 2021, DISCOMs are eligible for additional R&M expenses of
0.50%, on achievement of targets specified in the Regulations or reduction of actual losses by 3%.
Therefore, the DISCOMs are encouraged to take benefit of additional R&M expenses as per
Regulations.
East DISCOM Submission:
In the company area in last five years i.e since FY’18 to FY’22, following main infrastructure has
been created as per the capex plan to provide uninterrupted and quality power supply to all
categories of consumers:
S.N.
Particulars
Unit
FY’18
FY’19
FY’20
FY’21
FY’22
1
33/11KVS/S
Nos
15
95
8
12
15
2
Addl/Aug PTR
Nos
39
242
89
40
35
3
33 KV Line
Km
507
698
477
212
224
4
11 KV Line
Km
10303
21857
3399
891
649
5
LT AB Cable
Km
4091
18153
865
345
185
6
DTR
Nos
17531
41387
9332
2411
3214
Regarding increase of Distribution losses, it is to mention that by carrying out system
strengthening works technical losses has been definitely reduced. However, due to increase in LT
line for supply of rural households under various schemes, the technical losses have increased.
Further line loss reduction plan can be referred from RDSS scheme guidelines dated 17.03.2022.
Central DISCOM Submission:
The Central DISCOM has participated in RDSS Scheme of GoI. The DISCOM has to take up the
following works:-
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Madhya Pradesh Electricity Regulatory Commission Page 159
1. Replacement of Electronic Meter to Smart Meters in Urban areas having loss more than
40%
2. DT meterization of urban areas having loss more than 40%.
3. Augmentation of DTR and PTRs.
4. Augmentation of Conductor of 33 & 11 KV lines.
5. Construction of New Substations.
6. Installation of New Capacitor Bank on 11 KV feeders.
7. LT underground cabling etc.
The above works shall be executed under RDSS Scheme in phased manner for reduction of line
losses.
West DISCOM Submission:
It is submitted that the West DISCOM has achieved the distribution loss level of 12.71% in the
FY 2020-21 and 11.61% in FY 2021-22 against the normative distribution loss of 15.00% and
14.00% respectively, as allowed in the Tariff Regulations. DISCOM is making continuous efforts
to reduce losses.
Commission’s Observations/ Directions:
The Commission appreciates the efforts made by the West DISCOM, however, it has been
observed that the distribution losses submitted by other two DISCOMs are much above loss level
trajectory specified by the Commission. East and Central DISCOMs progress is far from
satisfactory and there is a huge gap between the targeted losses and actual losses. These DISCOMs
are incurring high financial loss against due to high distribution losses, as the Commission has been
allowing only the normative losses to be passed on to the consumers. The Commission opines that
it is very necessary and expedient to go into the details of sub-optimal performance of the
DISCOMs. Further, Commission observed that East and Central DISCOMs have referred to RDSS
Scheme for reduction of losses. In view of the above, the Commission directs the Petitioners to
submit loss reduction achievement of DISCOMs on quarterly, half yearly and an annual basis
against the targeted loss levels.
7.10 Meterisation of agriculture predominant DTR and domestic consumers
Commission’s Directives:
The Commission has taken note of the submission of the DISCOMs. It has been observed that all
three DISCOMs have achieved meterisation of Domestic urban consumers but not for rural
domestic consumers and agriculture DTR meterisation. The DISCOMs are directed to complete
these works within 6 months of issuance of this order and report the status of compliance to the
Commission after 1 month of deadline.
East DISCOM Submission:
Regarding meterization of unmetered domestic connection of rural area continuous efforts are
being made to provide the meters on unmetered connection. At the end of December, 2021 only
3,22,268 unmetered domestic connections were remaining which has further reduced to 3,11,497
at the end of March, 2022. The figures given above are of R-15 of the corresponding month. The
meterization of agricultural DTRs is not covered in any ongoing/sanctioned scheme. Plan for
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 160
100% predominant Agricultured DTR will be provided after sanction of loan assistance from
Financial institutions of any Govt. Scheme. The Quarterly report of agriculture predominant DTR
for March, 2022 has already been submitted to the Commission vide letter no. EZ/WS/949 dated
20.06.2022.
Central DISCOM Submission:
Central DISCOM submitted that due to paucity of fund the meterisation of Rural Domestic
unmetered consumers has not been completed. Under RDSS smart meter project approx 9.57 Lacs
meters shall be replaced. After replacement of the old meters these will be re-issued for installation
on domestic Unmetered category in Rural areas. Provision for meterisation of Agriculture DTR is
made in RDSS which will be achieved as per time line of the scheme.
West DISCOM Submission:
West DISCOM has achieved 100% meterisation in Domestic Urban Consumers. However, due to
Covid 19 pandemic the set target for meterisation of Rural Domestic Consumers could not be
achieved. It has now been targeted to achieve 100% meterisation by end of March, 2022-23. The
action plan for 100% meterisation is as below:
Total-Rural
Domestic
Unmetered
Connections (As
per R-15 July, 22)
Plan for Meterization
Sept.22
Oct.22
Nov.22
Dec.22
Jan23
Feb23
March23
25763
3683
3680
3680
3680
3680
3680
3680
With regard to agriculture consumers, necessary instructions regarding identification and
meterisation of urban flat rate agriculture consumers has already been issued to the field offices.
The Commission is requested to extend the timeline to next tariff period.
The Petitioner submits that the meterisation of predominately agriculture DTRs has already
been incorporated in the Capex plan. The said work for DTR meterisation shall be executed
depending upon the availability of the funds.
Commission’s Observations/ Directions:
The Commission has taken note of the submission of the DISCOMs. It has been observed that
all three DISCOMs have not achieved meterisation for rural domestic consumers and agriculture
DTR meterisation. The Petitioners are directed to complete these works in timebound manner
and report the status of compliance to the Commission after 1 month of deadline given in RDSS.
7.11 Policy and procedure for identification of bad debts and writing off the same
Commission’s Directives:
Bad and doubtful debts
The Licensee shall submit the Draft policy and procedure for identification of bad debts and writing
off the same for the approval of the Commission within three months from the date of notification
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Madhya Pradesh Electricity Regulatory Commission Page 161
of these Regulations.” Accordingly, the Petitioners are directed to submit draft policy and
procedure for identification of bad debts and writing off the same for the approval of the
Commission within three months from the date of issuance of this tariff order.
East DISCOM Submission:
As submitted by East DISCOM, the draft policy is under discussion and will be submitted to the
Commission after finalization.
Central DISCOM Submission:
The Central DISCOM has prepared the draft policy for adjustment mechanism of Bad and doubtful
debts. The legal and financial evaluation of draft policy is under vetting. The DISCOM requests the
Commission to provide time extension of one month for submission of policy.
West DISCOM Submission:
The Petitioner submits that the status of compliance in this regard has been submitted before the
Commission vide letter No. 9967 Indore dated 13.07.2022.
Commission’s Observations/ Directions:
The Commission has taken note of the submission made by East and Central DISCOMs submission
and directs East and Central DISCOMs to submit draft policy and procedure for identification of
bad debts and writing off. MPPMCL may submit a uniform policy for three DISCOMs within three
months to get approval of the same from the Commission.
7.12 Minimum Charges
Commission’s Directives:
In the present tariff structure, recovery of fixed cost incurred by Distribution Licensees is partially
recovered through fixed charges and remaining is recovered through energy charges. For the
consumers in the event of zero or minimal consumption by a consumer, it is likely that such a
consumer would only be required to pay fixed charges which would meet only about 20% of fixed
cost in the system. This is certainly not a desirable situation and in order to avoid such a scenario,
the concept to minimum charges was brought in, which was in the nature of meeting a part of the
fixed cost. Notwithstanding the current scenario, the Commission is of the view that tariff structure
needs further simplification and therefore, minimum charges which are in the nature of fixed
charges, could be subsumed at a later stage in the category of fixed charges. However, in order to
achieve this objective, it is necessary to understand implications of such a measure so that there is
no tariff shock for any particular category of Consumer. Therefore, Distribution
Licensees/Petitioners are directed to provide following information in details along with
implications for taking considered view in this regard.
i. Category / Sub-category wise applicable Minimum charges, recovery against the
Minimum Charges and number of consumers who have been billed Minimum
Charges during last five years.
ii. Category / Sub-category wise actual consumption for which billing has been done
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as per Minimum Charges for last five years.
iii. Category / Sub-category wise billed revenue from Fixed and Energy Charges
during last five years
East DISCOM Submission:
The Commission vide email dated 01.07.2022, circulated the format for collection of category-
wise minimum charges, billed recovery against the Minimum charges and number of consumers
who have been billed minimum charges during the FY 2020-21 & FY 2021-22 and category-wise
actual consumption for which billing has been done as per minimum charges.
The analysis carried out for all the consumer categories for FY 2020-21 & FY 2021-22. As regard
to FY 2017-18, FY 2018-19, and FY 2019-20, the TMM analysis is prepared only for HT
Categories, due to limitations of availability of data of LT categories because of migration to new
billing system in the DISCOM.
In accordance with data availability and format provided by the Commission, category-wise
minimum charges, billed recovery against the Minimum charges and number of consumers who
have been billed minimum charges during the last five years has already been shared with
Commission vide letter no.MD/EZ/CGM (Comml.)/1132 dated 03.11.2022.
Central DISCOM Submission:
It is submitted that the desired information shall be submitted to Commission separately within
short period of time.
West DISCOM Submission:
As directed, desired information is being submitted separately to Commission in the soft copy.
Commission’s Observations/ Directions:
The Commission has done away with minimum charges for LT domestic consumers. The
Commission has noted the submission of the Petitioner and directs the Petitioners to submit details
of FY 2022-23 with regard to minimum charges in next tariff petition.
7.13 Introduction of kVAh billing
Commission’s Directives:
The Petitioners have proposed to implement kVAh billing initially for HT consumers considering
awareness about advantages of maintaining PF among HT consumer groups. The Commission has
observed that the Petitioners have applied 0.934 conversation factor for all HT categories of the
consumers which is not substantiated with supporting data.
During the public hearing, the Commission received mixed response from the stakeholders where
some stakeholders submitted that appropriate time may be given to consumers to adopt to change
in methodology of billing. Even some stakeholders, who welcomed the Petitioners proposal,
requested the Commission to defer the implementation of kVAh billing upto next year.
In view of the above, the Commission directs the petitioners to carry out impact assessment study
within 6 months of this tariff order on transition from kWh billing to kVAh billing considering
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yearly average power factor for each category of HT consumers based on last three years data.
Further, the Petitioners are directed to conduct consumer awareness programs across the State to
explain the concept of kVAh billing and its implications to consumers of relevant categories such
that the consumers are prepared and kVAh based billing may be implemented upon HT consumers
in next tariff order.
7.14 Use of Electric Furnace in Power intensive industries such as Mini Steel Plants under
HV 3.4 tariff category
Commission’s Directives:
With regard to applicability of HV 3.4 category (Power Intensive Industries) Petitioners in their
tariff proposal have requested that for the purpose of smelting and heating of iron and steel only
electric furnaces be allowed. The Commission has observed that Petitioners have not submitted any
details with regard to existing power intensive consumers in the State in terms of types of furnaces
and their consumption pattern etc. The Petitioners are directed to furnish such details along with
analysis and comments in this matter in the next tariff petition.
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A8: PUBLIC SUGGESTIONS AND COMMENTS ON LICENSEES’
PETITIONS
8.1 After admission of the ARR and Tariff proposals for FY 2023-24 filed by MPPMCL
and three DISCOMs, public notice was published in the prominent newspapers of the
State to invite comments/objections/suggestions from the stakeholders. The Tariff
Petition filed by the Petitioners, along with a gist of the Petition was uploaded on the
Commission’s and the Petitioners’ websites. The Commission has considered all the
comments received up to the last date to file comments/objections/suggestions. Names
of the Stakeholders who had filed the comments/objections/suggestions on the ARR
/Tariff Proposal for FY 2023-24 are given in Annexure-I.
8.2 Public Notice, comprising the gist of the ARR and Tariff proposal were published by
Petitioners in the following Hindi and English newspapers, seeking stakeholders’
comments/objections/suggestions latest by 16
th
January, 2023.
Table 100 : List of Newspapers- Public Notice published by Petitioner
Newspaper
Language
Dainik Bhaskar, Jabalpur
Hindi
Dainik Bhaskar, Sagar
Hindi
Deshbandhu, Satna
Hindi
Hitvada, Jabalpur
English
Nai Duniya, Indore
Hindi
Times of India, Indore
English
Peoples Samachar, Bhopal
Hindi
Dainik Bhaskar, Bhopal
Hindi
Navbharat, Gwalior
Hindi
Raj Express, Gwalior
Hindi
Times of India, Bhopal
English
8.3 The Commission scheduled the public hearing on 23
rd
January, 2023 for East
DISCOM, 24
th
January, 2023 for West DISCOM and 25
th
January, 2023 for Central
DISCOM through video conferencing and heard the objections/ comments/
suggestions of the stakeholders.
8.4 Number of comments received on ARR/Tariff proposal are shown in the table below
Table 101 : Public Suggestions/Comments on the Petition
Sr. No.
Name of DISCOM
Number
1.
East DISCOM, Jabalpur
44
2.
West DISCOM, Indore
63
3.
Central DISCOM, Bhopal
25
Total
132
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8.5 As a part of the tariff exercise, a meeting of the State Advisory Committee (SAC) was
convened on 30
th
January, 2023, through video conferencing to seek suggestions on
the Petition. The issues raised and suggestions made by the members of SAC have
been appropriately considered herein.
8.6 The comments/objections/suggestions received from various stakeholders have been
given due consideration by the Commission. The salient comments/ objections/
suggestions related to the Tariff Petition have been grouped together according to the
nature of the comments/objections/suggestions and are summarized in this Section.
Some of the issues raised by the stakeholders, which do not relate to ARR and tariff
are not discussed in this Chapter.
ISSUE No. 1: Tariff Hike
Issue Raised by Stakeholder
The proposed hike on fixed charges should not be considered instead reduced in wake of
surplus power in State. Further, the proposed tariff hike in fixed charges shall result in increase
of around 22 paisa per unit which shall be very high considering prevailing situation of industry
and market due to various reasons like fuel price hike, COVID-19 Pandemic etc.
The Petitioners have simply proposed to increase tariff to recover gap and without working on
other options to reduce overall expenses of the DISCOMs. Beside this, the stakeholders
submitted that the fixed charge for HT consumer should not be increased as fixed charges are
already high in Madhya Pradesh in comparison with Other States.
Petitioner’s Response
Petitioners submitted that the fixed cost component is about 60% of total ARR, which includes
fixed cost payable to the generators, transmission service providers and O&M expenses,
depreciation, interest and finance charges & return on equity. Further, it is a well-accepted
economic principle that the fixed costs of the utility should be recovered to a certain extent
through fixed charges to ensure revenue stability. Even though fixed cost component is about
60% of total cost incurred by the Distribution licensees in its supply and distribution business.
However, due to historically tariff structure followed, recovery of fixed cost through fixed
charges from the consumer is only about 20%.
Commission’s View
The Commission has determined the Retail Supply Tariff for various consumer categories in
this order after giving due consideration to the relevant provisions of the Electricity Act, 2003,
Tariff Policy, 2016, and MYT Regulations, 2021 and amendment thereof. The Commission
has been consciously making efforts over the past several years to pass the efficient cost of
supply after exercising prudence check on the submissions filed by the Petitioners and other
documents placed on record by the Petitioners.
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ISSUE No. 2: Incentive / Rebate / Surcharge
Issue Raised by Stakeholder
The stakeholders have made following requests / suggestions towards Incentive / Rebate /
Surcharge.
The rebate of Rs. 2/- per unit on incremental consumption by Captive Power Plant consumers
of HV-3 category should be increased to Rs 3/- per unit considering the huge investment made
for developing such plants. Further, the incremental consumption rebate should be continued
for at least next ten years.
Rebate of Rs.1/- per unit on incremental consumption of Open Access consumers for HV-3
should be allowed considering open access consumption of FY 2019-20.
The ToD rebate of 20% for night hours should be increased to 25-30%. Further, off peak Hours
Rebate of 20% during the period April-October should be restored.
The stakeholders requested the Commission to grant load factor incentive above 50% to utilize
more power, in view of surplus power available with the State.
The Power Factor incentive should be provided on total consumption including consumption
through DISCOM, Open Access and CPP under Open Access.
The stakeholder requested for special treatment and rebate in H.T industry particularly for labor
intensive industries.
The rebate should be same for new consumer and existing consumers because the market
condition is same for new consumer as well as existing consumer.
The stakeholder submitted that as per Hon’ble APTEL order in APPEAL NO. 70 of 2019 &
IA No. 1640 of 2019 & IA NO. 828 of 2020, which has held that Power Factor incentive are
applicable on entire power consumed by consumer. Therefore, it is suggested that power factor
should be calculated on entire power consumed by consumer irrespective of power availed
through DISCOM and Open Access, in case kWh billing is continued.
Petitioner’s Response
The Petitioners submitted that any increase in the rebate for Captive Power Plant will further
burden the other category consumers thus proposal lacks merit. The Petitioners have requested
the Commission to provide list of documents for verification of ownership of captive
generating plant for determination of ownership of various types of captive plant.
As per the section 62(3) of Electricity Act 2003, the Commission is fully empowered to make
differential Tariff to be charged on consumption of electricity during any specified period.
The Petitioners also submitted that no surcharge is being levied for consumption during peak
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hours. In addition to this, various other rebates/incentives have been provisioned in Tariff order
to the HT consumers and the consumers are availing the same.
The Commission has changed the ToD rebate incentive with its own purview in FY 2021-22.
DISCOMs have not proposed any levy of surcharge on consumption in peak period. Thus,
suggestion of the stakeholder regarding further increase of ToD rebate is not appropriate.
Moreover, incentive as such is the prerogative of the Licensee to promote its business and
create goodwill amongst the consumer and general public and may not be construed as a matter
of right.
Regarding rebate for existing and new HT connections, the Petitioners submitted that in line
with the previous tariff order rebate for existing HT connections & new HT connections has
been proposed to be extended for one year in instant petition. Further, the proposal for equal
rebate for existing and new HT connection lacks merit.
Regarding power factor incentive on energy consumed through Open Access, the energy
charges are not being billed on energy consumed through Open Access hence proposal of any
concession (i.e., PF incentive) on such unbilled energy charges lacks merit.
Further, submission of stakeholder that incentive should be provided on total consumption
including consumption through DISCOM Open Access and CPP power under Open Access
lacks merit.
Commission’s View
The Commission has noted the submission of stakeholders and reply submitted by the
Petitioners. The Commission in this order has continued various rebates/ incentives/surcharges
which have been detailed in tariff schedule chapter of this order.
ISSUE No. 3:Abolition of Fuel Cost Adjustment (FCA) Charges.
Issue Raised by Stakeholder
The stakeholder submitted that MPPMCL shall make a profit of Rs 1,635 Crore from sale of
surplus power and accordingly FCA Charges may be abolished.
The proposed increase in energy charges seems to be not in order as the power cost is revised
every three months by way of FCA charges as the power purchase cost is more than 80 % of
the total ARR.
Petitioner’s Response
The proposal and rational behind Fuel & Power Purchase Cost Adjustment (FPPCA) has been
duly provided in the petition. The stakeholder is requested to refer the chapter A 17 of the
petition.
The mechanism of FCA is meant for recovery of increased power purchase cost with respective
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to cost allowed in the tariff order of respective year. Therefore, submission of stakeholders
lacks merit.
Commission’s View
Pursuant to the Electricity (Amendment) Rules, 2022 issued by Ministry of Power, Govt. of
India, the Commission has amended the MYT Regulation, 2021 and revised the formula for
recovery of Fuel and Power Purchase Adjustment Surcharge (FPPAS). Accordingly, the
Petitioners are directed to comply with the provision of Regulation 9 of the MYT Regulations,
2021 and its amendment thereof.
ISSUE No. 4: Cross Subsidy and Additional Surcharge
Issue Raised by Stakeholder
The Petitioners proposal to increase Additional Surcharge from Rs. 1.21 to Rs. 1.44 is very
high and the power purchase for Open Access shall become unviable, which is not in line with
motive of Open Access Policy. Further, no additional surcharge should be levied on Captive
Power Plants and Renewable Power Plants.
As per MoP notification dated 29
th
December 2022 Clause 4. Cross Subsidy Surcharge shall
not exceed twenty per cent of the average cost of supply.
RPO obligation is increasing every year to promote Green Power. Therefore, the Commission
is requested to calculate CSS and Additional Surcharge separately for purchase of RE Power
from third party within the State. In present petition there is no difference in calculation in
Cross Subsidy & Additional Surcharge for purchasing RE Power. Further, CSS and Additional
surcharges on purchase of RE power should be reduced or eliminated.
Govt of India has laid down in the Tariff Policy that the cross subsidies to be brought down to
within the range of ± 20% of the average cost of supply but it has been observed that this limit
has not been introduced till last year and many categories are paying the charges more than
30% of average cost of supply. Therefore, the Commission is requested to bring the Cross
subsidy within the range of ± 20% of the average cost of supply in this tariff order.
Some of the stakeholders requested the Commission to reduce and eliminate the CSS as per
the Section 39(2d) of Electricity Act, 2003 and calculate CSS for relevant category as per the
formula prescribed under Tariff Policy, 2016.
The consumers of the DISCOM pay demand charges even while availing power through open
access. These demand charges account for some part of the fixed cost borne by the Licensee
and ought to be considered while working out the power purchase fixed cost obligation
attributable to the open access consumers. Therefore, it is vital to deduct this amount from the
amount of additional surcharge in order to avoid double collection of revenue by DISCOM
from the embedded open access consumers on account of additional surcharge and also to
maintain the balance of competition between the Licensee and open access consumers as also
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iterated in the Tariff Policy, 2016. Further, Others SERCs like Gujarat, Telangana and Punjab
while computing additional surcharge adjust the effective demand charges paid by the
embedded open access consumers while determining additional surcharge.
Petitioner’s Response
Additional Surcharge is being levied as per provisions of Section 42 (4) of the Electricity Act
2003. The Act provides no exemption on the Consumption from renewable energy sources
from levy of additional surcharge. On issue of additional surcharge on captive consumption is
subject matter of judicial proceedings. Further determination of captive status is not the subject
matter of instant petition.
The Petitioners submitted that the Cross Subsidy Surcharge and Additional Charge cannot be
abolished for Open Access consumer. The Hon'ble Supreme Court in the case of SESA Sterlite
Limited Orissa Electricity Regulatory Commission (2014) 8 SSC 444 has provided detailed
rational of imposing the Cross Subsidy Surcharge.
Further, CSS needs to be recovered from the open access consumers for their open access
consumption. Otherwise, not levying CSS will burden honest paying consumers by way of
unattended recovery of cross subsidy provided to cross subsidized consumers.
The Petitioners submitted that the Commission has been consciously making efforts over the
past several years to reduce the cross- subsidy levels across all consumer categories. However,
there are several variables which need to be taken into consideration i.e., change of cost
structure, tariff shocks to any particular tariff category etc. Further, Cross Subsidy surcharge is
being determined by the Commission in accordance with the provision of Electricity Act 2003,
MYT Regulations and Tariff Policy.
The Petitioners have submitted the detailed calculations of Additional Surcharge, based on the
actual energy surrendered due to Open Access energy derived from the 15 min time block of
period from Sept-21 to Aug-22 to the Commission. The summary of the calculations is
submitted in Table No. 250 of the Tariff Petition. Hence, requested the Commission to consider
the Additional Surcharge determined by the petitioners.
The Petitioners submitted that Open Access Consumers, being consumer of DISCOMs, have
to pay the applicable charges of respective category as per Tariff Order issued by the
Commission. The applicable charges such as Demand charges, Energy charges are applicable
to consumers of the DISCOMs. The Demand charges are collected to meet out the cost of
DISCOMs which are fixed in nature such as Power Purchase, Depreciation, Interest Payments
etc. The cost attributable to Open Access, as stranded capacity of the DISCOMs only pertains
to fixed cost of power purchase. Hence, the Petitioners disagree with the view of the
stakeholder in this regard since it is irrelevant and the suggestion of the stakeholder can be
rejected by the Commission.
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Commission’s View
The Commission has noted the submission made by stakeholders and reply submitted by the
Petitioners. The methodology for computation of Additional Surcharge has been detailed in
relevant section of this order.
The Commission has been consciously making efforts over the past several years to reduce
the CSS level across all consumer categories taking cognizance of the facts that there should
not be any tariff shocks to consumers as such. Further, in pursuance to the Electricity
(Amendment ) Rules, 2022 issued by Ministry of Power , Govt. of India, the Commission has
amended Regulation 47 of MYT Regulation, 2021 whereby it is now specified that Cross-
Subsidy surcharge shall not exceed 20% of the average cost of supply to the category of the
consumers seeking open access.
ISSUE No. 5: Green Energy Tariff
Issue Raised by Stakeholder
The stakeholder submitted that the Green Energy Tariff must be reduced. Further, separate
tariff should be mentioned for Solar and Non-Solar.
The stakeholders have suggested to lower the green power consumption from 100% to 10%-
20% Renewable Energy from Distribution Licenses. Further, the stakeholder requested the
Commission that flexibility should be allowed to the consumers who want less renewable
energy instead of 100% and for the partial period during the month.
Petitioner’s Response
Petitioners submitted that they have given additional submission in regard to Green Energy
Tariff to the Commission. Further, the petitioners have noted the objection and the Commission
may take appropriate view in this regard.
Commission’s View
The Commission has taken cognizance of stakeholders suggestions and Petitioners reply as per
the provisions of MPERC (Co Generation and Generation of Electricity from Renewable
Sources of Energy) (Revision-II) Regulations 2021 and amendments thereof. The Commission
has dealt the issue of Green Energy Tariff in comprehensive manner in the relevant section of
this Order.
ISSUE No. 6: Distribution Losses
Issue Raised by Stakeholder
The actual distribution losses reported by the DISCOMs for FY 2021-22 are on higher side
with respect to normative distribution loss levels specified by the Commission. Therefore, the
inefficiencies of the East and Central DISCOM should not be passed to the consumers.
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Petitioner’s Response
Quantum of power purchase has been computed considering the normative distribution loss
approved in the MYT Regulations, 2021. Further, power purchase cost disallowed on account
of normative losses are borne by the petitioners only. Therefore, consumers are not being
burdened with any additional losses and such losses are borne by the Licensee only.
The Petitioners have been striving hard to reduce the losses. They are also taking part in various
loss reduction schemes. However, the loss reduction is a gradual process.
Commission’s View
The Commission has been repeatedly directing the Petitioners to make concerted efforts to
reduce the distribution losses in line with the loss trajectory specified by the Commission. The
Commission has provided sufficient time to the DISCOMs and specified the loss reduction
trajectory with achievable targets. For reduction in technical and commercial losses through
various schemes, the Commission had admitted the capital investment schemes of the
DISCOMs in the past years. Besides, the Government of India has also provided financial and
technological support to the DISCOMs through various schemes. The Commission appreciates
the performance of West DISCOM for achieving lower Distribution losses. However, the loss
level in other two DISCOMs are much higher than the loss trajectory specified and needs
immediate corrective action.
There is a need to implement a concrete program by the DISCOMs to achieve the targeted loss
level in a time bound manner for making the DISCOMs financially viable and sustainable
operations.
The Commission has approved the ARR for the Petitioners considering the normative
distribution losses for FY 2023-24 approved in the MYT Regulations, 2021 and its
amendments, thereby not allowing pass through of higher losses and its associated costs on
account of inefficiency of the Petitioners to the consumers.
ISSUE No. 7: Depreciation
Issue Raised by Stakeholder
The stakeholder submitted that the depreciation on the assets handed over by the consumers as
well as by the developer should not be allowed. Further, Commission should create the fund of
depreciation amount for the purchase of the equipment etc.
Petitioner’s Response
Depreciation has been claimed by the Petitioners as per Regulation 33 of the MYT Regulations,
2021 and the rate of depreciation has been considered in accordance with rate specified by the
Commission in MYT Regulations, 2021.
Commission’s View
The Commission has approved the depreciation as per the provisions of MYT Regulation, 2021
and amendments thereof which is inline with the approach adopted by the Commission in its
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MYT order. The details have been discussed in ARR chapter of this Order.
ISSUE No. 8:Tariff Minimum Charges
Issue Raised by Stakeholder
The Tariff Minimum charges for all HT/LT consumers categories should be abolished and
actual consumption should be considered, as the actual consumption in 90% of industries is
very high and more than the Tariff Minimum charges. This will be helpful to small
industrial/non-industrial consumers. The average cost of unit to such small HT consumers are
ranging from Rs 15 to 20 per unit and such type of consumers are less than 1% of total HT
consumers.
Petitioner’s Response
The Petitioners submitted that as per the principles of two-part tariff fixed charges are meant
for the recovery of fixed cost and energy charges are meant for the recovery of variable cost.
At present fixed charges are not sufficient to recover the fixed cost of the licensee. Therefore,
unless the fixed charges are increased to that level so as to sufficient to recover the fixed cost
of supply, Tariff Minimum charges cannot be abolished.
Further Regulation 41 of the MYT Regulations, 2021 clearly stated that Tariff Minimum
charges shall be included in tariff income.
Commission’s View
Tariff Minimum Charges are intended to ensure guaranteed recovery of fixed costs of the
DISCOMs and are levied only when consumption of any consumer falls below guaranteed
minimum consumption for a month subject to adjustment of units consumed at end of financial
year. The Commission has abolished tariff minimum charges for LT Domestic category and
continued with the existing provisions of Tariff Minimum Charges for other tariff categories
of consumers.
ISSUE No. 9: Seasonal Consumers
Issue Raised by Stakeholder
The stakeholder submitted that the billing of energy charges during off season is done at 120%
of the normal Energy Charges as specified for Season for normal units as well as Tariff
Minimum units. However, at the time of giving credit of TMM units, the same is done at normal
energy charges, thereby leading to loss of 20% to the consumers. Therefore, it is requested that
it may be clarified that at the time of giving TMM credit, the same rate be considered as it was
billed.
Further, the off-season period for seasonal consumer should be 4 months instead of 6 months.
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Petitioner’s Response
In accordance with the methodology given in the tariff order billing of minimum consumption
is being done in terms of units and credit of the same in any subsequent period is also being
done in terms of units only. Rate of billing has no relevance as far as billing of minimum
consumption is concerned, thus, proposal of the stakeholder is this regard lacks merit.
Further special concessional tariff is provided to the seasonal consumer only on the ground that
they operate only part of the year. If submission of the stakeholder regarding off season of 4
month is accepted there should not be any special tariff for seasonal consumers. Thus, proposal
of the stakeholder in this regard lacks merit.
Commission’s View
The Commission has taken note of the stakeholder’s suggestion and modified the terms and
conditions for seasonal consumers in LT and HT categories keeping the time frame for seasonal
consumers as the same.
ISSUE No. 10: Supply for temporary purpose in existing HT consumers premises
Issue Raised by Stakeholder
The stakeholder submitted that 10% of the sanctioned load is allowed to be used for
construction for expansion/ renovation/ modification from existing HT connections on the
same tariff applicable for the permanent connection. However, presently the consumers are
facing challenges due to overzealous checking by the Licensee. Like in any industry, frequent
small construction and modification are always required as 10% of load of contract for such
activity should be allowed.
Petitioner’s Response
The Petitioners submitted that billing for temporary connections is done as per Clause 1.19 of
General Terms and Conditions for HT Tariff of the tariff Order.
Commission’s View
The Commission has decided to retain the existing provisions in this Tariff Order.
ISSUE No. 11: Bad and Doubtful Debts
Issue Raised by Stakeholder
The stakeholder submitted that the provisions for bad and doubtful debts should be allowed at
the time of true-up petition and only after prudence check. Further, benefit from any scheme
should not be allowed under bad and doubtful debts.
Petitioner’s Response
The Petitioners have claimed Bad & Doubtful Debts as per provision of MYT Regulations,
2021, wherein it has been mentioned that it is to be allowed up to the maximum of 1% of yearly
revenue, which is well within aforesaid limit prescribed in the Regulation.
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Commission’s View
The Commission has not considered any bad and doubtful debt in this order. Further, the
Commission has directed the petitioner to prepare draft policy and procedure for identification
of bad debts in this order.
ISSUE No. 12: Introduction of KVAH tariff for HT categories
Issue Raised by Stakeholder
The stakeholders submitted that change in methodology in billing for HT/EHT Consumers
from kWh to kVAh billing will result in increase in tariff by 7%-13% as rate of Energy Charges
have not been reduced accordingly. Further, change in tariff structure will adversely affect the
industries.
The stakeholders submitted that the proposal is against MYT principle as prescribed in Section
61 (h) of the Electricity Act, 2003, Tariff Policy, 2016 and MYT Regulation 2021. Further,
kVAh billing should not be accepted considering the prevailing situation of industry and market
due to fuel price hike, COVID-19 pandemic etc.
Some stakeholders welcomed the Petitioners proposal and few stakeholders requested the
Commission to differ the implementation of kVAh billing upto next year.
Petitioner’s Response
The Petitioners submitted that while proposing the kVAh billing for the consumers i.e., in
designing kVAh Tariff, the Petitioners have adopted the principle of revenue neutrality so that
both the licensee as well as consumers are not burdened unnecessarily. Further, many States
have already adopted KVAh billing in India. The prime objective of the KVAh 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.
Further, submitted that the Petitioners have not proposed any reduction in tariff rates. The
Petitioners have proposed a uniform hike in tariff of around 3.20% across categories based on
the revised ARR and past True-up gap. The tariff (in kWh) so estimated for FY 2023-24 after
considering above hike for categories including HT industry is represented in equivalent kVAh
tariff for applicable categories on the basis of revenue neutralized conversion factor as already
explained in detail at Chapter A13 of Petition.
The kVAh billing provides inbuilt incentive mechanism, which will automatically take care of
power factor incentive and disincentive for the high and low power factor respectively. Hence,
it has been proposed to abolish separate provision for power factor incentives and disincentives.
Further, while proposing the kVAh billing, i.e., in designing KVAh Tariff, the Petitioners have
adopted the principle of revenue neutrality so that both the licensee as well as consumers are
not burdened unnecessarily. Hence, even if the tariff is proposed in kVAh, there will be no
additional impact on consumers had the same would have proposed in kWh.
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Commission’s View
The Commission has noted the submissions made by stakeholders and reply submitted by the
Petitioners. The Commission has not considered the Petitioners proposal of implementing
kVAh based billing in this Order and given appropriate directive in the Compliance to Directive
chapter of this Order.
ISSUE No. 13:Classification of Telecom towers
Issue Raised by Stakeholder
The Stakeholder submitted that Telecom tower should be placed under Industry or under lower
tariff category as it’s a public service utility or sperate tariff category may be provided for
telecom.
Further, submitted that MERC after taking into consideration the IT/ITeS policy of the
Government of Maharashtra specifically categorized Telecommunication Towers in the
Industry Tariff vide its order dated 30.03.2020 in Case No. 322 of 2019.
Petitioner’s Response
The Petitioners submitted that Section 62(3) of Electricity Act, 2003 provides stipulation for
creation of any categories and hence tariff for such category. Taking cognizance of the Section
and considering the nature and purpose for which the supply is required, Industrial category
was introduced in the State of Madhya Pradesh wherein there is "manufacturing and
processing" involved. In other word the raw material is being processed into finished product
through manufacturing process and other such activities. However, no activity of
manufacturing/processing is being carried out in the telecom towers hence, present
classification in the non-domestic category is appropriate and therefore it cannot be considered
under industrial category.
As far as categorization of telecom towers under industrial category in Maharashtra State is
concerned, it is submitted that IT/ITeS policy of the Government of Maharashtra has
categorically mentioned the applicability of Industrial tariff to Telecommunication Towers. As
no such provision has been specified in the Madhya Pradesh IT, ITeS & ESDM Investment
Promotion Policy. Also, the applicability of provisions of IT/ITES policy of Government of
Maharashtra is confined to the State of Maharashtra and therefore, its provision is not
necessarily applicable to the matters subjected to the State of Madhya Pradesh.
It is submitted that different State have different policy and tariff categories/tariffs which are
based on their specific requirement, demography, consumption pattern and various other
social/economic/financial factors. There is no binding on any State to compulsory adopt the
provision of other State or have same provision as that of others.
Commission’s View
The Commission has taken the cognizance of stakeholders’ suggestions, Petitioners’ reply and
other commercial aspects, and has decided to retain the existing provisions. The Commission
has been allowing Industrial tariff to the industries where raw material is processed into
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finished product through manufacturing process and other such activities. The telecom tower
connections are covered under LV Non- Domestic and HV Non- Industrial categories as the
case may be.
ISSUE No. 14:Applicability clause for category HV 3.4
Issue Raised by Stakeholder
The stakeholder requested the Commission that the plant using all electric furnace like
induction furnace, crucible furnace, cupola furnace and electric arc furnace shall be continued
to be covered under HV-3.4 Tariff category.
Petitioner’s Response
The Petitioners submitted that the intent behind the proposal is to exclude, the mini steel plant
(MSP) with rerolling mills/ sponge iron plants in the same premises and ferro Alloy plants,
operating with thermal furnaces (i.e other than electrical furnace). The Petitioners have noted
the stakeholder suggestion and requested the Commission to take appropriate view on this
issue.
Commission’s View
The Commission has decided to retain the existing provisions in this Order.
ISSUE No. 15: Enhancement of Contract Demand for 33 KV consumer
Issue Raised by Stakeholder
The stakeholder submitted that the limit of contract demand for 33 kV consumer should be
increased from 10 MW to 20 MW for existing and new connection. Further, the additional
charges applicable at 2% should be withdrawn for the consumers as it will increase the
consumption and the Petitioners shall generate more revenue from the consumers.
Petitioner’s Response
The Petitioners submitted that the limit is applicable as per MP Electricity Supply Code, 2021.
Commission’s View
The Commission has decided to retain the existing provisions.
ISSUE No. 16:Return on equity (ROE)
Issue Raised by Stakeholder
The stakeholder has submitted that the MYT Tariff Regulation, 2015 is in violation of Section
123 of Companies Act, 2013 regarding payment of Return on Equity as this is collected to pay
dividend to stakeholders. Further, the stakeholder submitted that the stakeholder have
confirmed before ROC Gwalior that DISCOMs are not paying any dividend to shareholders
but claiming RoE as allowed by MYT Tariff Regulation. Therefore, end use of ROE collected
is not known and should be kept in separate bank account as per Section 124 of Companies Act
2013, if dividend is not paid.
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Further, the Stakeholders submitted that DISCOMs have collected nearly Rs 10,000 Crore in
the name of ROE from consumers for last several years and confirming that no dividend is
being paid to Shareholders. The use of this Rs 10,000 Crore is not monitored by Commission
and no order is being passed regarding end use of Rs 10,000 Crore by the Petitioners. Therefore,
recovery of RoE, is being made from public without declaring the end use of the RoE.
The stakeholder submitted that the Petitioners has claimed Rs 687 Crore against the RoE in the
Petition. Hence, the Commission is requested to check it is as per Regulation.
Petitioner’s Response
The petitioners have claimed RoE in accordance with the Regulation 31 of the Tariff
Regulations, 2021, which allows the petitioners to claim 14% RoE on equity capital of the
respective year.
This Regulations were notified by the Commission in exercise of power conferred under
Section 181(2) (zd) read with Section 45 and 61 of the Electricity Act, 2013, after due
public/shareholder consultation process. Hence, the claim of the petitioners does not violate
any provisions of Electricity Act, 2003 and Tariff Regulations.
As regards to RoE being collected for payment of dividend and can’t be retained, the petitioner
submitted that utilization of RoE is at the discretion of DISCOMs. The DISCOMs may invest
the RoE in creation of assets or in any other purpose or may declare dividends in accordance
with relevant provisions of Companies Act, 2013 if it meets the criterion for dividend
declaration. Further, the MYT Regulations, 2021 also allows the Petitioner to retain any
earnings made on investments made out of the allowed RoE. Hence, the claim of RoE by the
Petitioners is legally valid. Therefore, the contention of the stakeholder in this regard is entirely
misplaced and not tenable.
Commission’s View
The Commission has noted the submission made by stakeholders and reply submitted by the
Petitioners. The Commission has allowed Return on Equity at base rate of 14% as per provision
of MYT Regulations, 2021. Methodology adopted for approval of Return on Equity has been
detailed in ARR chapter of this Order.
ISSUE No. 17:Tariff Proposal for Metro Rail
Issue Raised by Stakeholder
The stakeholder disagreed with the tariff proposed for Metro Rail in the Petition. Further, the
stakeholder proposed Metro Rail tariff of Rs 335 per kW/Month as fixed charges and Rs.
355/kVAh as energy charges similarly as of Kochi and Ahmedabad Metro.
The stakeholder requested the Commission to create sperate category for Metro Rail and
provide exemption of charges such as State/Local taxes and duties/levies and tariff be provided
at the least possible tariffs on "no-profit-no-loss basis"
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Petitioner’s Response
The Petitioners submitted that one should not merely compare the tariff in terms of energy
charges and or demand charges on standalone basis rather the resultant Tariff, i.e., ABR need
to be compared as it is the ABR which represent the actual landed cost per unit of energy
consumption a consumer need to pay. The Petitioners submitted that while the Energy Charges
and Demand Charges as approved for Gujarat-GMRCL Metro Rail appears to be substantially
low, the ABR for Gujarat-GMRCL Metro Rail is substantially higher. This is because of the
higher Fuel Adjustment Charges (FPPPA) and other charges which are not shown in the stand
alone Tariff approved for Gujarat-GMRCL Metro Rail. The same can be validated from the
Table 8-8 of Tariff Order Case No. 2033 of 2021 22 issued by GERC.
Commission’s View
The Commission has created seperate tariff category for Metro Rail and determined tariff
which has been detailed in Tariff Schedule of this Order.
ISSUE No. 18:Power Purchase Cost
Issue Raised by Stakeholder
The stakeholders submitted that the availability of power is much more against the requirement
of power in spite of additional capacity created by the DISCOMs. Further, total backdown of
power to the extent of 25,792 MUs needs to be properly scrutinized. Whether such backing
down is in the State interest or whether such surplus power can be used in other State without
any financial losses. The Consumers are paying fixed charges to some power companies
without the DISCOMs purchasing single unit as per the agreement. Therefore, such agreement
should be properly examined and terminated accordingly.
The stakeholders submitted that the surplus power should be offered to Railway on attractive
rate and these rates will be greater than proposed rate of IEX. Further, night rebate for use of
excess power by HT /EHT industries should be increased to 25% throughout the year. Thus,
the surplus power during night hours will be utilized in State itself and the Petitioners shall
earn additional revenue from Sale of Surplus power, which will reduce the revenue gap in
ARR.
Further, the stakeholder submitted that there is huge power surplus in Madhya Pradesh and
hence back down charges of around Rs 4,000 Crores are being paid to power generating station
every year. Furthermore, the banking of power also causes payment of transmission charges
and line losses.
In addition to above, the stakeholder submitted that MPPMCL is regularly adding PPAs to
purchase non-conventional renewable energy more than requirement of RPO and high cost of
thermal power purchase PPA from Adani Power has also been signed despite surplus power
available with Petitioners while low-cost power from Reliance Power Chitrangi project is not
being purchased which is against the public interest.
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Petitioner’s response:
The Petitioner submitted that the basis of the projections of the power purchase cost has been
duly provided in the petition.
Based on the historical data, Petitioners have made forecasts of sales and have estimated energy
requirement of Discoms by grossing up the sales with normative loss level as specified by the
Commission. The energy requirement of DISCOMs has been further grossed up win Intra-state
Transmission losses and Inter-state Transmission losses to arrive at the Ex-bus requirement.
Similarly, the petitioners have also estimated the availability of energy. Considering the above
estimations, the Petitioners have envisaged an energy surplus scenario Whereas during actual
operation the demand projections of the licensees made for every 15 minutes block interval
also varies from hour to hour, day to day, season to season basis and so do the loss level of the
licensee. Further during actual operations, the availability of generators as considered in the
ARR petition may or may not be available due to many reasons which are beyond the control
of the distribution licensee. Further the actual energy requirement may remain more than what
has been projected in the petition. During Rabi season the power demand of the licensee is
usually much higher than that during non-Rabi season, hence in actual operating conditions it
is not necessary that there will be surplus power uniformly throughout the year.
The Distribution licensee has to meet the power demand of all the consumers as per the relevant
provisions of the Electricity Act, 2003 under the obligation to supply. During Rabi season there
may be times when the Petitioners need to purchase power from open market i.e., through
Energy exchange. Hence the surplus scenario envisaged by the Petitioner is subjected to the
truing-up exercise based on the actual operation during the year and in accordance with the
Regulations of the Commission. However, we appreciate the view of stakeholder to consume
more electricity from the licensees for more production and ToD rebate being provided in the
tariff order is nothing but a special night tariff.
Further, the Petitioners submitted that they have taken the IEX rate of Rs.4.70 per unit for
estimation of revenue calculation which is the result of weighted average of electricity sold on
the exchange in the last 24 months only for those time blocks where power has actually taken
under consideration which power was sold on the exchange at rates higher than the scheduled
power rate for estimation of revenue from surplus energy. If there is a downward trend in the
rates on IEX and it is anticipated that the rates received on IEX will be less than the prescribed
power rate, then MPPMCL has to surrender the power to avoid any possible DSM penalty.
Petitioners submitted that the availability of surplus power depends on the factors such as
demand situation of MP-State in MW, availability of surplus energy with MPPMCL in MW in
time blocks, Demand-Supply position in the power sector etc. Hence, there may be surplus in
some time blocks and deficit in some time block. Therefore, when there is no requirement of
power, the generating stations are backdown. Further, it is noteworthy to mention that
Petitioners does not have control over the availability of power generating stations and demand
of the consumers.
As regard to purchase of renewable energy for RPO Obligation, it is submitted that DISCOMs
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are only following the applicable Rules, Regulations and Orders of the Ministry of Power,
Commission and State and Central Government in this regard.
Regarding the Reliance Power, the petitioners hereby submits that MPPMCI, carried out the
bidding process in FY 2006-07, under the Case-1 of Bidding Guidelines and Standard bidding
document issued by Ministry of Power-Government of India. Reliance Power Limited (RPL)
participated in the bidding process and agreed after negotiation for levelised tariff of Rs. 2.45
per unit. Accordingly, LOI was issued on 09
th
May, 2008. However, no PPA has been signed
with RPL and the tariff of RPL could not be adopted by the Commission under section 63 of
Electricity Act, 2003 for want of mainly execution of PPA with RPL Although, RPL was to
setup a power plant in Chitrangi, in present Singrauli District of Madhya Pradesh but the same
was not set up. It is felt that any objection about a power plant which has not been set up, at
all, appears to be irrelevant.
Commission’s View
The Commission after carrying out due diligence of the details submitted by the Petitioners
and applying the merit order dispatch principle as per the provisions of MYT Tariff
Regulations, 2021 has approved the Power Purchase Cost which has been detailed in ARR
chapter of this order.
ISSUE No. 19:Estimation of Sales
Issue Raised by Stakeholder
The stakeholders submitted that the Petitioners have inflated sales forecast to conceal actual
cost of supply, as differential between forecast and actual consumption is termed as
uncontrolled parameter and the financial impact arising due to this is claimed through True up.
Therefore, Commission is requested to analysis pervious years data, which will indicate the
difference in submission, proposed and actual sales.
Further, inflated sales projections have resulted in extra tie-up capacity, which has resulted in
extra financial burden on consumers. In addition to this, tariff structure has been distorted to
accommodate true up cost of past years.
The projections are high in case of Industries/commercial units but are lower in case of
Agricultural and domestic consumers. Further, many consumers are under unmetered or stop
defective meters and if actual consumption is considered the projection under this head shall
result in addition of consumption. itself should add more. Moreover, the Petitioners position of
DTR metering and metering of unmetered connections is very alarming.
The stakeholders submitted that the Petitioners have not considered any provisional sales to
Metro Rail.
Petitioner’s Response
Petitioners submitted that the basis of the projections of the sales are duly provided in the
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petition.
Commission’s View
The Commission has analyzed the petitioners submission in regards to past years sales trends
and growth rate and accordingly estimated the sales projections for FY 2023-24.The
methodology adopted for projection of sales has been detailed in ARR chapter of this Order.
ISSUE No. 20:Determination of Category wise Cost of Supply
Issue Raised by Stakeholder
The Petitioners submitted that the consumer availing supply on EHT and HT only contribute 4
to 5% of the system losses, but their tariff are decided on average distribution losses. This cause
unjustified burden on EHT and HT category of consumers. Therefore, its requested that the
Commission decide the tariff on the basis of actual losses, contributed by that category of
consumer.
Petitioner’s Response
The “Determination of Category wise Cost of Supply” is addressed to the Commission. The
Commission may provide appropriate views in this regard.
Commission’s View
The Commission has computed Voltage wise cost of supply based on the methodology
prescribed by Hon’ble APTEL as per the details made available by the Petitioners in their
submissions. The approach and methodology adopted for computation of voltage wise cost of
supply is detailed in Tariff Design Chapter of this order.
ISSUE No. 21:Interest and Finance Charges
Issue Raised by Stakeholder
The stakeholders submitted that interest and finance charges for project loans are to be claimed
on Capital projects undertaken in the MYT period by the Petitioners and only approved
CAPEX should be considered for allowing interest charges under this expenditure head.
The stakeholder submitted that more avenues for arranging competitive finance should be
explored by the Petitioners for Interest and finance charges for working Capital. One such
option could be inviting consumers to deposit electricity bill in advance for ensuing months
also under the current provision of accepting advance at per prevailing interest on such
deposits.
Petitioner’s Response
The Petitioners submitted that that Interest and finance charges are approved as per CAPEX
plan. Further, the Commission may provide appropriate views with regard to Interest on
Working Capital.
Commission’s View
The Commission has admitted the interest and finance charges as per the provision of MYT
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Tariff Regulation, 2021 in this order and detailed the approach for approval of Interest &
Finance Charges in ARR chapter of this order.
ISSUE No. 22:O&M Expenses of DISCOMs
Issue Raised by Stakeholder
The stakeholders submitted that DISCOMs are increasing unnecessary expenses in renting of
vehicles ,increasing salary of employees etc. This can be reduced and burden of these should
not be passed on agricultural consumers.
Further, the DISCOMs has demanded excess of Rs. 600 Crore towards Repair & maintenance
expenses. Therefore, it is requested to the Commission that the proposed O&M Expenses,
Employee Costs, Administrative & General Expenses, Repair and Maintenance Expenses,
Capital Investment Plan, Scheme Wise Capitalization, CWIP, Fixed Assets Addition etc. needs
to be verifying from other agency for its correctness.
Petitioner’s Response
Petitioners submitted that the Operational and Maintenance Expenses in the petition have been
claimed as per Regulation 36 of MYT Regulation, 2021.
Further, the estimation of R&M expenses is linked to the opening of Gross Fixed Assets (GFA)
as per the Regulation 36.4 of the MYT Regulation, 2021. Further, the petitioners has estimated
the revised R&M expenditure accordingly.
Commission’s View
The Commission has allowed the O&M Expenses in accordance to the norms stipulated in the
MYT Regulations, 2021 and its amendments thereof, which has been detailed in ARR chapter
of this Order.
ISSUE No. 23:Increase in interest rates on Security Deposits of Consumers
Issue Raised by Stakeholder
The Petitioners have revised the interest rate on Security Deposits since last 2 years from 6.50%
to 4.50%. The financial assistances availed by the industries from any financial institution
ranging from 10% to 13%. The DISCOM's must be getting finance from different financial
institutions at around the same rate of 10 to 13%. Therefore, its requested that the Commission
should review and provide equal justice to Consumers & DISCOM's and revise the interest
payable by DISCOM's on security deposits to around 10%.
Petitioner’s Response
The Petitioners submitted that the rate of Interest on Security Deposit is governed by Madhya
Pradesh Electricity Regulatory Commission (Security Deposit) (Revision-1) Regulations, 2009
and its amendment, therefore. As per the amendment dated 20 July, 2018, the interest on
security deposit is to be paid as per Bank Rate prevailing as on 1" April. Further, the Petitioner
does not have material control on the rate of interest on Security Deposits of the consumers.
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Hence, the request of the stakeholder cannot be entertained by the Petitioners.
Commission’s View
The Commission has considered the interest rate on security deposit as per the provision of
MYT Tariff Regulations, 2021 read with MPERC (Security Deposit) (Revision-1) Regulations,
2009 and its amendment.
ISSUE No. 24:Rebate for LV-4 industrial Consumers
Issue Raised by Stakeholder
The stakeholder submitted that under LV-4 category, the rebate of 30% on fixed and energy
charge should be extended for contract demand upto 25 HP-35HP, presently which is upto 20
HP. Further, requested the Commission to revoke the conditions of FY 2016-17 tariff order in
view to provide support to micro and small-scale industries.
Petitioner’s Response
The Petitioners submitted that the proposed alternation in the tariff category will have
substantial financial impact on the DISCOMs.
Commission’s View
The Commission has decided to continue with existing rebate of 30% on fixed and energy
charges upto 20 HP load under LV-4 Tariff Category.
ISSUE No. 25:Reduction in Minimum Demand Charges from 100KVA to 50 KVA FOR 33
KV Consumer in HV3.1 Category
Issue Raised by Stakeholder
The stakeholder submitted that in this category, majority of consumers are MSME' s who are
in the activities wherein they & their processes require an uninterrupted power supply (Like:
Plastic processing Industries) with good & stable voltage in modern Electronic Controls
system, which is not available at the 11 kV feeders (Quality and consistency of Power is same
as in LT Consumer & they do not get anything extra even after investing cost of Sub-station)
and their requirement in not 100 kVA.
There are many instances where due to technical reasons in General Terms and conditions of
H.T. Tariff, the Commission has permitted many consumers for lower Minimum Contract
Demand in the 11kV and 33 kV Supply voltage.
As there are no financial burden on the DISCOM's as the cost of the sub-station is borne by the
consumer himself, therefore the Commission is requested to review this requirement of the HT
(Industrial Consumer) and reduce the requirement on Minimum Contract Demand from 100
KVA to 50 KVA for HT Consumer HV-3.1.
Petitioner’s Response
The Petitioners submitted that as per the Clause 34 of MPERC Supply Code Regulations,
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Madhya Pradesh Electricity Regulatory Commission Page 184
2021, it is to be noted that for 33 kV voltage supply the minimum contract demand is 100kVA
to Max. 1000kVA. Further, the Petitioner disagree that the good & stable voltage is not
available to HT Consumers. Furthermore, the stakeholders submission is related to amendment
in Supply Code and not related to present proceedings for determination of tariff for FY 2023-
24. The Commission may provide appropriate views in this regard.
Commission’s View
The matter raised by the stakeholder pertains to the provision under the MPERC Supply Code,
2021 and is to be dealt in accordance to the provision of the said Regulations.
ISSUE No. 26:Domestic LV 1.1
Issue Raised by Stakeholder
The stakeholder suggested that at present there are no consumers in Domestic LV 1.1. If any
such consumers are present, the Petitioners do not bill according to tariff schedule under this
category. Therefore, the Commission is requested to direct petitioner to remove this category.
Petitioner’s Response
Petitioners submitted that in the Tariff Policy / National Electricity Policy issued by the central
government has provisions related to special concession on consumption upto 30 units to
economically weaker consumers. LV 1.1 category.
Commission’s View
The Commission has retained the existing tariff category and provisions in this Order in
accordance with Tariff Policy / National Electricity Policy.
ISSUE No. 27: Fixed charges for Domestic consumers
Issue Raised by Stakeholder
The fixed charges for Domestic consumers are considered every 15 units of consumption per
month or part thereof equal to 0.1 KW of load. This should be changed to per unit consumption.
Further, according to the current slab if consumption during the month is 150 Units the
consumer has to pay Rs. 125, if the Unit consumption increases by 1 unit i.e., 151 Units per
month the Consumer has to pay Rs 297. This one unit is costing fixed charge of Rs 172 which
is unviable. And stakeholder requested the Commission to revise this slab.
Further, the fixed charges on domestic consumers should be abolished, because only 25 % of
home appliances are used.
Petitioner’s Response
The Petitioners submitted that they are billing the consumers as per tariff order. Further,
suggested the stakeholder to refer note no.2 written under LV 1.2 tariff category where the
instruction has been given regarding billing of fixed charges. Further, submitted that the billing
of fixed charges on per unit basis is not justified as per the concept of two-part tariff.
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Commission’s view
The Commission has decided to retain the existing provisions in this Tariff Order.
ISSUE No. 28: Abolishing Minimum charge for Temporary Domestic Connection
Issue Raised by Stakeholder
The Petitioners are recovering excess revenue from temporary connection. For construction of
own house the consumer has to pay 25% extra from the regular tariff and Rs 1000/- per
connection per month towards energy charges for temporary connection as Minimum Charges.
Further, for commercial temporary connection the consumer has to pay 25% extra from the
regular tariff but there is no as such Rs 1000/- Minimum Charges. Therefore, this Minimum
Charges should be abolished.
Petitioners’ Response
The billing for temporary connection for construction of own building is being done as per
tariff Order which is 1.2 times higher than the normal tariff. Further, billing of minimum charge
for this type of connection is justified as at present the fixed charges are not sufficient to recover
the fixed cost of the licensee.
Commission’s view
The Commission has noted the submission made by stakeholders and reply submitted by the
Petitioners. The Commission has abolished Tariff Minimum Charges for LT Domestic
category in this Order.
ISSUE No. 29: Energy Charge and fixed charge for un-metered rural domestic connection
Issue Raised by Stakeholder
The stakeholder submitted that as per the computation, the consumption for 500 Watt works
out to 48 units and 48 units slab is for urban and rural both but rural areas have less electricity
consumption against urban area.
Petitioner’s Response
The Petitioners Submitted that the slab of 75 units has been fixed by Commission which is
justified on the basis of consumption. Further, it should be increased keeping in view the
increase in consumption from time to time.
Commission’s View
The Commission has decided to retain the existing slab and provisions in this Order.
ISSUE No. 30:Pension Terminal Benefit Fund
Issue Raised by Stakeholder
The stakeholder submitted that the Commission in order of P.No.13/2018, directed the
DISCOMs to create an escrow account and to deposit the pension amount in Terminal Benefit
Trust fund. Further, the Commission in tariff order FY 2022-23 directed DISCOMs to deposit
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Rs 210 Crore in Pension and Terminal Benefit Trust Fund.
In the instant petition the Petitioners have not provided any details regarding deposition of
amount proposed for FY 2023-24.
The stakeholders further submitted that Commission in order of P.No.13/2018, directed
MPPTCL within three months from the date of issue of order to conduct an actuarial valuation
to determine size of the Terminal Benefit Trust Fund required to make Terminal Benefit Trust
self-sufficient for discharging the Pension and Terminal benefit liabilities in order to secure
future of the pensioners as provided in the Transfer Scheme Rules but MPPTCL in filed P. No
84/2022 have not provided any details about actuarial valuation of Funds. Therefore, the
Commission is requested to initiate panel action against MPPTCL and DISCOMs for non-
compliance of orders of Commission to create and make sufficient pension fund.
Petitioner’s Response
The Petitioners submitted that as directed by the Commission in tariff order for FY 2022-23,
the Petitioners are depositing fund under TBT. Further, Transmission Company has already
appointed M/s K.A. Pandit-Consultants & Actuaries Mumbai, vide order no 2324 dated
13.08.2021 for carrying out the actuarial analysis for assessing the liability of terminal benefits
of working employees, Pensioners & Family Pensioners of all six successor companies of
erstwhile MPSEB.
The Petitioners submitted that presently, the actual Pension and Terminal Benefits of all the
Companies, ie, unbundled entities of MPSEB, are being allowed in the MYT and True-up of
MPPTCL on "Pay as you go" under the transmission charges. Further, the Petitioners submitted
that MPPTCL shall be submitting the copy of actuarial valuation before the Commission and
the Petitioners shall abide by the Order of the Commission.
Commission’s View
The Commission has noted the submission made by stakeholders and reply submitted by the
Petitioners. The Commission has allowed expense towards contribution to Terminal Benefit
Trust Fund for FY 2023-24 which is detailed in ARR chapter of this Order. The Commission
directs the Petitioners to deposit the amount against Terminal Benefit Trust Fund allowed in
this Tariff Order.
ISSUE No. 31:Supply Affording Charges
Issue Raised by Stakeholder
The stakeholder submitted that the industrial consumers in LV-4 category while availing a new
connection from DISCOM's are required to deposit the supply affording charges as directed in
the Supply Code. Further, if contact demand reduces and thereafter once again increases the
contract to the original level of earlier sanctioned contract demand, DISCOMs are desiring to
deposit fresh supply affording charges for the increased contract demand. This duplicate
deposit must be removed and if the new contract demand is above the original sanctioned
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contract demand it is acceptable to be paid.
Petitioner’s Response
The Petitioners only follows the provision of Supply Code. Further, the above objection is
related to amendment in supply code and not related to present proceedings for determination
of Tariff for FY 2023-24.
Commission’s View
The matter raised by the stakeholder pertains to the provision of MPERC Supply Code, 2021
and not to tariff determined in this order.
ISSUE No. 32: Cost of Transformer and line for LT connections
Issue Raised by Stakeholder
The stakeholder submitted that small and medium industries are being developed in the context
of the developing industrial environment of the State. The cost of transformer and line is taken
from the industry by the power companies on the application submitted by the low-tension
power consumer or small-scale industry for expansion or for new connection. This expenditure
is of lakhs of rupees, the transformer installed becomes the property of the electricity
companies and many other electricity connections are given through it. It would be appropriate
that this expenditure be adjusted in the bills for the next 12 months.
Petitioner’s Response
The Petitioners submitted that the Regulation 3.9 of the Madhya Pradesh Electricity Regulatory
Commission Recovery of Expenses and Other Charges for providing Electric Line or Plant
used for the purpose of giving Supply) (Revision-II) Regulations, 2022 stipulates that
Distribution Licensee have a right to use the network for supplying electricity to any other
person by tapping unless such supply is detrimental to consumer who had borne the full cost
of such network.
Commission’s View
The matter raised by the stakeholder pertains to the provision under the Madhya Pradesh
Electricity Regulatory Commission Recovery of Expenses and Other Charges for providing
Electric Line or Plant used for the purpose of giving Supply), Regulations, 2022 and not to
tariff determined in this order
ISSUE No. 33:Payment of Subsidy
Issue Raised by Stakeholder
The stakeholder submitted that Commission in P.No.54/2021 passed an order in which if
advance subsidy is not provided by the State Government in accordance provisions under
Section 65 of the Electricity Act, 2003 then DISCOM should issue the bill to consumers as per
tariff order to avoid hardship of financial problem.
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Madhya Pradesh Electricity Regulatory Commission Page 188
Further, in accordance with section 65 of the Electricity Act 2003, the Commission, against
P.No. 54/2021 have made provision that in case of grant of subsidy on electricity supply to
Consumer(s) the State Govt. have to pay timely subsidy amount and in case of default there is
provisions for action in accordance under Section 142 of the Electricity Act, 2003.
Petitioner’s Response
The Petitioners submitted that the issue raised by the stakeholder is not the subject matter of
instant petition as instant petition has filed for determination of ARR and Tariff Proposal for
FY 2023-24 under the tariff principles laid down in the MYT Regulations, 2021
Commission’s View
The matter raised by the stakeholder pertains to the provision under the MPERC (Manner of
payment of subsidy by the State Government) Regulation, 2007 and is to be dealt accordingly.
ISSUE No. 34:Rural Area / Agricultural Connection
Issue Raised by Stakeholder
The stakeholder submitted that DISCOMs are failing to provide quality electricity regularly,
feeder separation work is incomplete still, there are voltage problem with tripping and
conditions of transformer, poles, and wires are not upto mark. Further, the new connections are
not provided by the Petitioners in rural area.
Petitioner’s Response
The Petitioners submitted that the approved feeder separation work has been completed under
the feeder separation scheme in rural areas and interruption in power supply in feeders is only
due to faults or sudden excessive load increase. As soon as it comes to notice of the Petitioners
the power supply is restored by doing rectification work or making alternative arrangement.
Further, new connections have regularly been provided by DISCOM under various scheme.
Commission’s View
Commission has allowed the capital expenditure for the DISCOMs for improvement in
infrastructure works and the DISCOMs are required to ensure the adequate supply and services
to consumers.
ISSUE No. 35:Applicability of order
Issue Raised by Stakeholder
The Stakeholder submitted that True -up order for FY 2021-22 is required to be passed by
Commission before admission of ARR for Retail Supply Tariff of DISCOMSs for FY 2023-
24. Further, the stakeholder has submitted that it is violation of APTEL direction.
Petitioner’s Response
The Petitioners submitted that nowhere in the MYT Tariff Regulations, 2021 it has been
specified that the true-up order is required to be passed first before admission of ARR Petition.
The Regulation 7.2 of the MPERC (Terms and Conditions for Determination of Tariff for
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 189
Supply and Wheeling of Electricity and Methods and Principles for Fixation of Charges)
Regulations, 2021 dated 03rd December 2021 mandate the DISCOMs to file a revised ARR
Petition and Tarif Proposal for FY 2023-24 along with True-up of FY 2021-22. Further, in
many States there is no sperate order for True-up, rather there is a single Tariff Order which
capture True-up as well as Retail Supply Tariff for ensuing year. Hence, the argument of the
stakeholder suffers from lack of understanding and does not hold any merit.
Further, the liabilities of past True-up need to be considered in the tariff determination of the
ensuing year, as, non-consideration of the same will result in under-recovery leading to creation
of regulatory assets which is not desirable as per National Tariff Policy. This will result in
substantial financial loss to the DISCOMs and unnecessary tariff burden on consumers on
account of carrying cost over such unrecovered gap. The Bombay High Court in its Judgement
in Maharashtra State Electricity Board Vs Maharashtra State Electricity Regulatory
Commission reported in AIR 2004 Bombay 294, has pointed out that denial of tariff revision
leaves a revenue gap in the revenues of DISCOMs and tariff should be so fixed as to leave no
tariff gap. Hence, it is imperative to consider the past liabilities in the tariff determination of
subsequent years. Therefore, the claim of the Petition is valid, and the contention of the
Stakeholder does not hold any merit. The stakeholder has merely stated that the inclusion of
True-up demand in ARR of ensuing year is in violation of APTEL judgement, however, the
stakeholder has not provided the details of such APTEL judgement which has been violated by
the Petitioners.
Commission’s View
The Commission has noted the submission made by the stakeholder and reply submitted by the
Petitioners. The Commission has determined the True-up of ARR for FY 2021-22 as per
provision of MYT Regulations, 2015 and amendment thereof.
ISSUE No. 36:Withdrawal of Bill
Issue Raised by Stakeholder
The Stakeholder submitted that the DISCOMs have withdrawn the electricity bill of Rs 5,000
Crores for 89 lac consumers in October, 2020 vide Energy Ministry letter no. 6021/2020/13
dated 27
th
August, 2020 and were also not shown as arrear from November 2020 onwards.
These bills along with arrear has not been shown as bad debts while filling this true-up petition
and in earlier true-up petitions for FY 2019-20 & FY 2020-21, DISCOMs have suffered huge
losses due to withdrawal of these electricity bills payable in October, 2020 and ultimately
waived off in April, 2022.
Petitioner’s Response
The Petitioners submitted that it has noted the submission of the stakeholder in this regard.
Further, it is submitted that as per MYT Tariff Regulations actual bad debt write off is allowed
to be considered in true-up of any year. Accordingly, the petitioner has filed a true-up petition
wherein only actual bad debt write off has been shown. However, any provision made on
account of bad debt is shown in the audited accounts of the Licensee.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 190
Commission’s View
The Commission has not considered any bad debt towards demand withdrawal, or any amount
waived off under the government schemes in this order.
ISSUE No. 37: Theft of Electricity
Issue Raised by Stakeholder
The stakeholder submitted that DISCOMs have failed to reduce the theft of electricity, rather
it has been observed that due to minor discrepancies cases of theft are made against small
consumers.
Further the theft of electricity is never shown by the Petitioners in their submission. Therefore,
it is requested to the Commission to direct the Petitioners to create separate item in the petition
for losses on account of theft of electricity as the Petitioners are presently the adjusted these
losses against the transmission and distribution loss, which is not appropriate.
Petitioner’s Response
The Petitioners submitted that efforts are made by them to stop theft of electricity theft. Further,
the Petitioners are providing incentive amount to the individuals for reporting of theft of
electricity.
Commission’s View
The Commission directs the petitioners to enhance its efforts towards reduction in commercial
losses on account of theft of electricity and also to increase the billing efficiency.
Comments Received from Shri. Nirmal Lohia and Dr. P G Najpande
Compliance of the Order of Hon’ble Supreme Court
Issue Raised by Stakeholder
The stakeholder has stated that directions / order given by the Hon’ble Supreme Court in civil
Appeal No. 1933/2022 on 23.11.2022 (at para 131) has not been complied by the Commission.
Proceedings of Petition No. 84/2022 be stayed until the necessary Regulations are framed by
the Commission.
Petitioner’s Response
Petitioner Stated that the query pertain to the Commission.
Commission’s View
The directions of Hon’ble Supreme Court in the matter are duly complied and relevant
Regulations have been notified within the stipulated timeline.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 191
Other Comments Received from Shri. Nirmal Lohia
ISSUE No. 1: Authorization letter not been filed by Shri. B.P Patel along with Petition
Issue Raised by Stakeholder
Stakeholder stated that Petition No. 84/2022 has been filed on 30.11.2022 and Shri. B.P Patel
has no authority on this date 30.11.2022 to file and sign Petition before the Commission on
behalf of East DISCOM. No authorization letter has been filed by Shri B.P Patel along with
Petition.
Shri B.P Patel has been appointed OIC by the East DISCOM on 27.12.2022 for signing and
filing of the Petition.
Shri Manoj Dubey is a senior Advocate therefore he cannot appear without associate/ junior
Advocate. Further, any vakalatnama signed by unauthorised person / B.P Patel is also null and
void.
Therefore, Stakeholder requested the Commission that Petition No. 84/2022 be dismissed with
cost along with canceling public hearing held on 23
rd
, 24
th
and 25
th
of January, 2023.
Petitioner’s Response
Petitioner stated that Shri BP Patel working as G.M (Commercial) II O/o CGM (Commercial)
is authorized to act as OIC in the case.
Commission’s View
The Commission has taken the cognizance on submission made by the Petitioner that Shri B.P
Patel is working as G.M (Commercial) of the company and is duly authorized to act as OIC in
this petition.
ISSUE No. 2: GoMP to implead as Non- Applicant
Issue Raised by Stakeholder
Stakeholder stated that GoMP is necessary party in the Petition, so Petitioners be directed to
implead GoMP as non-Applicant.
As, Under Section 152 of Electricity Act, 2003 GoMP has power to amend only compound
amount but unauthorizedly GoMP has given 100% rebate on interest amount and 20% to 50%
rebate on tariff / billing amount from year 2010 onwards. So, rebate amount given from year
2010 to 2022 should be deducted. Power Management Company has not supplied the figure of
rebate till today despite RTI Application filed on 26.12.2022.
Petitioner’s Response
Petitioners have submitted no comments in this regard.
Commission’s View
The issue raised by the stakeholder does not pertain to this tariff order.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 192
ISSUE No. 3:Advertisement to Consumers
Issue Raised by Stakeholder
Stakeholder stated that there is no advertisement policy in East DISCOM, So expenses of
advertisement by petitioner should not be accepted by The Commission. Further, the
advertisement should be conveyed to consumers as per letter no. EZ/Comml./Rev/384.
Jabalpur, dated 21.06.2022 of East DISCOM.
Petitioner’s Response
Petitioner stated that the advertisement is for awareness of the consumers to get benefit out of
the schemes and policies and to reach the end consumers. Hence in this regards the prudent
advertisement cost needs to be allowed.
Further, the advertisements on behalf of the East DISCOM has been done as per direction of
the Commission to avail the benefits of the policy to consumers/ any information to the
consumers. The image provided by the objector is of advertisement for creation of awareness
in public regarding consumer grievance redressal forum established by the discoms in line with
the MPERC (Establishment of forum and electricity ombudsman for redressal of grievances of
consumer) (revised) Regulations 2021.
Commission’s View
The issue raised by the stakeholder does not pertain to this tariff order.
ISSUE No. 4:Financial statement
Issue Raised by Stakeholder
Stakeholder stated that Petition No. 84/2022 was filed before Commission on 30.11.2022. BOD
of East DISCOM has not approved the financial statements of accounts till 30.11.2022.
Petitioner’s Response
Petitioner stated that the ARR & Tariff Petition has been filed in accordance with MYT
Regulations, 2021.
Commission’s View
The Commission has allowed the ARR as per provisions of the MYT Regulations, 2021 and
details submitted by the Petitioner.
ISSUE No. 5:Appointment of MD
Issue Raised by Stakeholder
Stakeholder stated that, all the Petitioner company MDs are appointed contrary to the provision
of A.O.A., GoMP order dated 14.02.2020 and notice in WP No. 20148 of 2022 on 09.09.2022.
Petitioner’s Response:
Petitioners have submitted no comments in this regard.
Commission’s View
The issue raised by the stakeholder does not pertain to this tariff order.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 193
ISSUE No. 6:Honest Consumers
Issue Raised by Stakeholder
Stakeholder stated that honest consumers cannot be punished.
Petitioner’s Response
Petitioners have submitted no comments in this regard.
Commission’s View
The issue raised by the stakeholder does not pertain to this tariff order.
ISSUE No. 7:Vacant Post in Commission
Issue Raised by Stakeholder
Stakeholder stated that One post of Member of Commission is vacant from 02.02.2023, inspite
of GoMP has notified the vacant post on 19.09.2022.
Petitioner’s Response
Petitioners have submitted no comments in this regard.
Commission’s View
The issue raised by the stakeholder does not pertain to this tariff order.
ISSUE No. 8:Physical mode of hearing
Issue Raised by Stakeholder
Stakeholder stated that appeal can be heard through virtual mode but not Petition because
Petition involves mixed of question of facts and law. Petitioner has to be cross examined.
Further, stakeholder should be permitted to cross examine all the Petitioners.
Hon’ble APTEL has started physical mode of hearing from 01.07.2022. Therefore, the
Commission should conduct stakeholder hearing through physical mode one by one and oblige.
Petitioner’s Response
Petitioners have submitted no comments in this regard.
Commission’s View
The Commission is of the opinion that technological set ups established during pandemic may
be continued to facilitate and maximize participation of parties and stakeholders before the
Commission.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 194
Annexure-1 (List of Stakeholders)
LIST OF STAKEHOLDERS- EAST DISCOM
Sr. No.
Name & Designation
Address
1
Shri Ravidatt Singh, Pradesh
Mahamantri
M/s. Rastriya Kisan Majdur Mahasangh, Sirmour Road, Near Khutehi Block Office,
Panchvati Petrol Pump, Sirmour Road, Rewa
2
K.K Agrawal
Bhartiya Krishak Samaj
3
Shri Somnath Kushwaha
M/s. Rastriya Kisan Majdur Mahasangh,sambhag Rewa
4
Shri Om Narayan Kushwaha
M/s. Rastriya Kisan Majdur Mahasangh, Rewa
5
Shri D R Jeswani
M/s. Mahakaushal Udyog Sangh, 22, Industrial Area, Richhai, Jabalpur 482010
6
Jabir Khan Sr. GM (E&I)
M/s. Prism Johnson Ltd. Vill. Mankahari, P.O. Bathia, Distt. Satna 485111
7
Shri Deependra Sharma
M/s. Birla Corporation Ltd., Satna Cement Works, PO Birla Vikash, Satna
8
Shri Ashish Asopa
M/s. Jaykaycom (Cement) Ltd., Village Harduwakan, Teh. Amanganj, Dist. Panna
9
The Secretary
M.P. Rajya Vidyut Mandal Pensioners Association, H No. 21/329, Sant Kamvaram
Ward, Sidhi Colony, Sagar, 470002, MP
10
Shri K K Agrawal
Flat no 101 , Paragati Tower , Mahanda Jabalpur, MP
11
Shri P.S. Yadav
M/s. M.P. Vidyut Mandal Pesioners Association, 139, JDA Scheme, 213, Nehru
Nagar, Bajna Math, Jabalpur 482003, MP
12
Shri C.L. Swarnkar
Neha Nagar, Maroniya, Sagar, MP
13
Shri Anil Kumar Pandey
427, Ward No. 15, Saket Dham Colony, Makroniya Sagar, 470004, MP
14
Shri Devendra Mehta
1084, Sanjeevni Nagar, Jabalpur, MP
15
Shri Santosh Tiwari
Nayagaon Society, Rampur, Jabalpur, MP
16
Shri D.S. Chouhan
Chandni Enclave, HIG-1, 1605, South Civil Lines, Jabalpur, MP
17
Shri Shailendra Mahajan
A/6, Om Niketan, Shakti Nagar, Jabalpur, MP
18
Shri G.K. Mishra,
1308, Yadav Colony, Jabalpur, MP
19
Shri Amit Kumar Shrivastava
102, Rajul Flats, Barchul Nagar, Jabalpur, MP
20
Shri Santosh Shrivastava
1795Ratan Colony, Narmada Road, Jabalpur, MP
21
Shri Anand Kumar Tiwari
M.P. Power Generating Co. Ltd, Jabalpur, MP
22
Shri F.D. Thakur
11, Sudha Vihar, Rampur,
23
Smt. Ashabai Shrivastava
Jagriti Nagar, Gotegaon, Distt. Narsinghpur, MP
24
Smt. Mayabai Pagare
Rudra Ward Gotegaon, Distt. Narsinghpur, MP
25
Shri Abhay Khare
M.L. 8, Manavlok Society, Shakti Nagar, Jabalpur, MP
26
Shri Shyamlal Raghuvanshi
Kherapati Mandir Ke Pass, Shashtri Ward, Kareli, Distt. Narsinghpur, MP
27
Shri Arun Kumar Khare,
Near Shard Tent House, Housing Board Colony, Narsingpur 487001, MP
28
Shri G.P. Nayak,
Rudra Ward, Gotegaon, Distt. Narsinghpur, MP
29
Shri Vinay Kumar Bhikonde
93, Indrapuri Colony, Jabalpur, MP
30
Shri Shravan Kumar Namdeo
Ambedkar Ward, Kareli Distt. Narsinghpur, MP
31
Shri C L Kahar
Patel Ward, Gotegaon, Distt. Narsinghpur, MP
32
Shri Satish Gupta
H no. 23/119 Housing Board Colony, Trimuthy Nagar Narsingpur, MP
33
Moh. Iqbal sing patel
Shivaji Nagar, Mahendra war colony, district, narsinghpur. MP
34
Shri Harprasad Kahar
Thakur baba ward, Niranjan Singh colony nearby, Mote Gaon dist, Narsinghpur, MP
35
Shri ganesh ku. Chaturvedi
Shastri Ward, Bhirna Road Dist, Narsinghpur ,MP
36
Shri sudhir ku. Panday
884/7 Subheksha Shakti Nagar, Jabalpur, MP
37
Shri chunni lal Kurmi
Jagriti Nagar, Gotegaon, Distt. Narsinghpur, MP
38
Shri D L Chaudhary
Shastri ward district, Narsinghpur MP
39
Shri Sant Kumar Sharma
P.G. College ke Samne, Narsinghpur, MP
40
Dr. P G Najpande
Raj krishna Smriti, 842, North Civil Lines, Jabalpur, MP
41
Shri Rajendra Agrawal
1995/A, Gyan Vihar Colony, Narmada Road, Jabalpur 408068. MP
42
Shri.Nirmal Lohia, Advocate
Taldarbaja, Tikamgarh
43
Shri Mangalram mahavar
972 Mandala Road , Bilahari, Distt Jabalpur, MP
44
Shri Sitaram Kevat
Jabalpur, MP
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 195
LIST OF STAKEHOLDERS- WEST DISCOM
Sr. No.
Name & Designation
Address
1
Sri Ghanshyam Patel
Rashtriya Kisan Majdur Mahasangh, Division Indore
2
R C Somani on behalf of
Association of Industries
M/s. Association of Industries, Dewas, 1/B/1, 1B/2A, I.S. Gajra Industrial Area,
No. 1, A.B. Road, Dewas 455001
3
Shri Yogesh Mehta & R C
Somani
M/s. Association of Industries, Udyog Bhawan, Pologround, Indore 455001
4
R C Somani on behalf of Oasis
Distillries
M/s. Oasis Distillries Limited, H No. 102, B-2 Metro Towers, Vijay Nagar, Indore
5
R C Somani on behalf of Indra
Industries
M/s. Indra Industires Ltd. 406 Airen Heights, Opp. Orbit Mall, AB Road, Indore
6
R C Somani on behalf of
Kashyap Sweetner
M/s. Kasyap Sweetners Limited, Chetanya Gram, Badnawar, Dist. Dhar (MP) –
454 660.
7
R S Goyal on behalf of Mandi
Vyapari Sangh
M/s. Mandi Vyapari Sangh, C/o Harman Cottex, Vyapari Vishranti Bhawan, Krishi
Upaj Mandi Parisar, Bistan Road, Khargone, Distt. Khargone-451 001
8
R S Goyal on behalf of Diveel
Cotton
M/s. Diveel Cotton Industires, Khetia, Pansemal Road, Distt. Barwani
9
R S Goyal on behalf of SMO
Industries
M/s. S.M.O. Industries, Indore Road, Kasrawad, Tahsil - Kasrawad, Distt.
Khargone 451 228
10
R S Goyal on behalf of Sancheti
Cotton
M/s. Sancheti Cotex, Pansemal Road, Khetia, Distt. Barwani
11
R S Goyal on behalf of
Madhyanchal Ginners &
Traders Association
M/s. Madhyanchal Cotton Ginners & Traders Association, C/o. Harman Cotex,
Opp. Dejla Devda Colony, Bisthan Road, Khargone
12
R S Goyal on behalf of Satyam
Industries
M/s. Satyam Industries Ginning & Pressing Factory, Pati Bokrata Road, Khetia,
451881 Tah. Pansemal Distt. Barwani
13
Shri S.M. Jain, President
M/s. All India Induction Furnaces Association M.P. Chapter, C/o. Venus Alloys
Pvt. Ltd., 67, Industrial Area, Mandsaur - 458001 (M.P.)
14
Shri Pawan Singhania and Shri
Sandeep Jain
M/s. Rathi Iron & Steel Industries Ltd. 103, Laxmi Tower, 576, M.G. Road, Indore
15
Shri Pawan Singhania and Shri
Sandeep Jain
1.M/s. Jaideep Ispat & Alloys Pvt. Ltd. 103, Laxmi Tower, 576, M.G. Road, Indore
452001
16
Shri Pankaj Bansal, Managing
Director
M/s. Shivangi Rolling Mills Pvt. Ltd. 305-306 3rd Floor, Airen Heights, Bnear
Pakiza, A.B. Road, Indore
17
Shri M.C. Rawat, Secretary
The Madhya Pradesh Textile Mills Association, Jal Sabhagrah, 56/1, South
Tukoganj, Indore 452 001
18
Shri Hasmukh Jain Gandhi
M/s. Cold chain Industries Association M.P. Cold Storage Association, 211,
Devdhar omplex, Chhavni, Indore 452 001
19
Shri Samarpan Mahajan
Kalindi Fibers
M/s. Kalindi Fibers, Survey No. 151-152 Khaighat - Manawar Road, Dharampuri,
Distt. Dhar
20
Shri M U Nagori
M/s. Vippy Industries, 28, Industrial Area, Dewas
21
Shri Sanjay Vyas
malwa oxygen & industrial gases pvt. Ltd.
22
Shri Pankaj Jain, Taparia
Industries
M/s. Taparia Pvt. Ltd., Pandhana Road, Khandwa
23
Shri Hasmukh Jain Gandhi on
behalf of Gandhi Fertilizers
M/s. Gandhi Fertilizeres P Ltd. 211, Devdhar omplex, Chhavni, Indore 452 001
24
Shri Ajay Porwal
M/s. Porwal Auto Components Ltd (Solar Division), Ploy No. 209, Sector-I,
Pithampur District Dhar (MP)
25
Shri Ajay Porwal on behalf of
Grasims Industries
M/s. Grasim Industries Ltd. (Chemical Div.) Nagda Ujjain 456 331
26
Shri Ajay Porwal on behalf
Tirupati Starch & Chemicals
Tirupati starch & chemicals ltd.
27
Shri Ajay Porwal on behalf of
M/s Vodaphone Idea
M/s. Vodaphone Idea Ltd., Electricity No Problem, Indore
28
Shri Sanjeev Jain on behalf of
Airtel
M/s. Bharti Airtel Limited 3rd & 4th Floor, Scheme No. 54 A.B. Road, Metro
Tower, Near Vijay Nagar Square, Indore- 452010 MP India
29
Lt Gen. Dr SP Kochhar
COAI, 14 Bhai Veer Singh Marg, New Delhi, 11001
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 196
Sr. No.
Name & Designation
Address
30
Shri Krishnkant Mandlia, Shri
Ravindra Tiwari, Shri Yogesh
Lodha
M/s. Indus Towers Limited,H-4th Floor, Metro Tower, Scheme No. 54, A.B. Road,
Indore 452010
31
Shri Lakshman Singh Chouhan
M/s. Vidyut Mandal Pensioners Association, Urja Parisar, Pologround, Indore
452003
32
Shri K.D. Mishra
M.P. Vidyut Mandal Pensioners Association, Indore Kshetra, Indore Branch,
Burhanpur
33
Shri Arjun singh sisodiya
Vidyut mandal pensioner association, Dhar
34
Shri K R Patel
Santosh Nagar, Khandwa
35
Shri Abdul Gani
Moghar Road, LG Showroom Near
36
Shri Mohd. Mansoor Ahmad
Imlipura Zulfikar Gali, Khandwa
37
Shri Chaukanta Soni
108 Krapakunj Srishti Jwelors, Khandwa
38
Shri Amin Ul Huq
Nagchun Road, Housing Board Colony, Khandwa
39
Shri Arun Kumar Borale
Vidyut Nagar , Khandwa
40
Shri Keshav Lal Gupta,
Mahamantri
Bijli Karmchari Sangh, Mp
41
Shri Laxman Singh Chouhan
30 Kanchan Nagar Mandariya Khandwa
42
Shri Jagdish Prasad
B-9 Ramnagar Colony Jaswadi Road Khandwa
43
Shri Ashok Soni
Village Jaswadi Dist Khandwa
44
Shri Bhagirath Kushwaha
House No. 154 Shivpuram Phase 3 Khandwa
45
Shri Premchand Yadav
Santoshi Mata Mandir Campus Gali No. 5
46
Shri Kailashchand Soni
Kishor Nagar LIG 66 Khandwa
47
Shri Bhimsingh Chouhan
Aswathi Chowk Jail Road Khandwa
48
Shri Govind Tirole
Village Jaswadi Dist/Tehsil East Niward Khandwa
49
Shri S F Sisodiya
Mukam Post K Hazari Tehsil/Dist. Khandwa
50
Shri Pradeep Kumar Shukla
Pardeshipura Khandwa
51
Shri Gajraj Singh Darbar
316 Pranam City Phase 1 Khandwa
52
Shri Harbajan Singh
Raghuvanshi
79 Raghuvanshi Niwas Ramnagar Jaswadi Road Khandwa
53
Shri Vijay Kumar Barol
LIG Colony Khandwa
54
Shri Manohar Amrit
Malviya Colony Khandwa
55
Shri Shiv Kumar Billore
152 Navkar Nagar Khandwa
56
Shri Lokha Yadav
Plot No. 8 Joshinagar Near Se Office Khandwa
57
Shri Tukdu Chouhan
Village Shukvi Tehsil Khalwa Dist. Khandwa
58
Shri M.R. Patidar
M.P. Vidyut Mandal Pensioners Association, Distt, Khargone
59
Shri Dilip Baglekar
108, Vidya Nagar, Anandnagar, Khandwa
60
Shri Parmanand Rathore
10, Vidya Nagar, Lal Chowki, Khandwa
61
Shri Balkrishan Verma,
Lig-103, Kishore Nagar, Khandwal
62
Shri Sanjay Agrawal
970, Manak Chowk, Mhow
63
Smt. Sandhya Agrawal
970 Manak Chowk Mhow
LIST OF STAKEHOLDERS- CENTRAL DISCOM
Sr. No.
Name & Designation
Address
1
Shri Neeraj Mandloi (I.A.S)
The Government Of MP, Urban Development & Housing Department, Room No.
A-204, 2nd Floor, Vallabh Bhawan, Bhopal
2
The Commissioner,
BMC, Bhopal
Municipal Corporation, Bhopal, Mata Mandir, Harshvardhan Complex, Bhopal
3
Shri Shobhit Tandon & Shri
Manish Gangarekar
M/S. Madhya Pradesh Metro Rail Corporation Ltd. 2nd Floor, Smart City
Development Corporation Building, Kalibadi Road, BHEL, Sector, A, Barkheda,
Bhopal. MP
4
Shri Vipin Kumar Jain
M/S. M.P. Small Scale Industries Organisation, E-2/30, Mahavir Nagr, Arera
Colony, 462 016
5
Shri Amarjeet Singh
M/S. Govindpura Industries Association, Association Complex, Industrial Area,
Govindpura, Bhopal 462 023
6
Shri C B Malpani
M/S. Association Of All Industries, Mandideep, Plot No. AM-19, Sector-B,
Industrial Area, Mandideep Distt. Raisen
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 197
Sr. No.
Name & Designation
Address
7
Dr. R S Goswami
M/S. Federation Of MP Chambers Of Commerce & Industry, Udyog Bhawan, 129
-A, Malviya Nagar, Bhopal 462003
8
Shri Anil Agrawal
M/S. Laghu Udyog Bharti, Special Industrial Area, Govindpura, Bhopal
9
Shri S Pal
M/S. Vardhman Textile Ltd. A1-A6, Industrial Area-II, Satlapur, Mandideep Distt.
Raisen
10
The Director,
Om Smelter, Gwalior
M/S. Om Smelters & Rollers Pvt. Ltd., Gram Bharthari, Tehsil Chinour, Jhansi
Gwalior Road, Distt. Gwalior
11
The Director,
Satrang Steels & Alloys
M/S. Satrang Steels & Alloys (P). Ltd., Plot No. 7, New Industrial Area No. 2,
Mandiddep, Distt. Raisen
12
Shri Nitin Chansoria,
Jio Reliance Ltd.
Jio Reliance Ltd. DB City Mall, 3rd Floor Office Block, MP Nagar, Bhopal
462011
13
Shri Tilak Raj Dua
M/S. Digital Infrastructure Providers Association, 2nd & 3rd Floor, 7 Bhai Veer
Singh Marg, Gole Market, New Delhi
14
Shri Jogendra Behera
M/S. Indian Energy Exchange, Plot No. C-001/A/1, 9th Floor Max Tower, Sector
16B Noida, Gautam Buddha Nagar, Uttar Pradesh 201 301
15
Shri M C Bansal
M/S. Justice For Public Cause Foundation Trus, Flat No. 402, Sapphire Block,
Nikhil Nestles, Near Ashima Mall, Hoshangabad Road, Jatkhedi, Bhopal 462 026
16
Er. V.K.S. Parihar
M/S. United Forum For Power Employees & Engineers, Bhopal
17
Shri Ashok Kumar Gupta,
M/S. Vidyut Pensioners Hit Rakshak Sangh H No. 20, Vardhman Green Park
Colony, 80 Feet Road, Ashoka Graden Bhopal
18
Shri A.R. Sharma
C-21, Harishankarpuram, Laskar, Gwalior
19
Shri Ravi Bhushan
206, Lalchand Colony, Bahadurgarh, Bina
20
Shri A.K. Mishra,
G-2, Parle Paradise, 57- Scheme No. 8, Vashali Nagar, Jaipur 302021
21
Shri Mananak Ram Raghuvanshi
Sirpur
22
Shri Ramshankar Dogne
B-41, Aadi Parisar, Phase - 1, Bagsevania, Bhopal
23
Shri Mahesh Chandra Parnani
H No. 39 Premier Achenda Colony, Near People's Mall, Bhopal
24
Shri Rakesh Kumar Agrawal,
I-378, Sector, Beta-2, Grater Noida, UP
25
Shri L.N Saddawale
Shivpuri Mohalla
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 198
TARIFF
SCHEDULES
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 199
Annexure-2 (Tariff Schedules for Low Tension Consumers)
ANNEXURE TO THE TARIFF ORDER PASSED BY MPERC FOR
FINANCIAL YEAR 2023-24
MADHYA PRADESH ELECTRICITY REGULATORY COMMISSION
TARIFF SCHEDULES FOR LOW TENSION CONSUMERS
Table of Contents
Tariff Schedule LV - 1…………………………………………………………………………….. 200
Tariff Schedule LV - 2…………………………………………………………………………….. 203
Tariff Schedule LV - 3…………………………………………………………………………….. 206
Tariff Schedule LV - 4…………………………………………………………………………….. 208
Tariff Schedule LV - 5…………………………………………………………………………….. 211
Tariff Schedule LV - 6…………………………………………………………………………….. 215
General Terms and Conditions of Low-Tension Tariff……………………….…………...………..216
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 200
Tariff Schedule LV - 1
DOMESTIC:
Applicability:
This tariff is applicable for light, fan and power for residential use. Dharamshalas, Gaushalas, old
age homes, day care centres for senior citizens, rescue houses, orphanages, Affordable Rental
Housing Complex established under Pradhan Mantri Awas Yojana, Registered home stays under
following Schemes of the State Government: (a) MP Homestay Establishment (Registration and
Regulation) Scheme, 2010, Amended 2018, (b) MP Bed and Breakfast Establishment (Registration
and Regulation) Scheme, 2019, (c) MP Farm Stay Establishment (Registration and Regulation)
Scheme, 2019, (d) MP Gram Stay Establishment (Registration and Regulation) Scheme, 2019,
places of worship and religious institutions will also be covered under this category.
Tariff:
LV 1.1 (Consumers having sanctioned load not more than 100 watts (0.1 kW) and consumption
not more than 30 units per month)
(a) Energy Charge and Fixed Charge – For metered connection
Monthly
Consumption
(units)
Energy Charge (paise per unit)
Urban/ Rural areas
Monthly Fixed Charge
(Rs.)
Up to 30 units
334
NIL
LV 1.2
(i) Energy Charge and Fixed Charge – For metered connection
Monthly
Consumption
Slab (units)
Energy Charge with
telescopic benefit
(paise per unit)
Urban/ Rural areas
Monthly Fixed Charge
(Rs.)
Urban areas
Rural areas
Up to 50 units
427
71 per
connection
57 per
connection
51 to 150 units
523
124 per
connection
101 per
connection
151 to 300 units
661
27 for each
0.1 kW load
24 for each 0.1
kW load
Above 300 units
680
27 for each
0.1 kW load
26 for each 0.1
kW load
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 201
Notes:
1) The fixed charges shall be levied considering every 15 units of consumption per month or part
thereof equal to 0.1 kW of load. Example: If consumption during the month is 155 units, then the fixed
charges shall be levied for 1.1 kW. In case the consumption is 350 units then the fixed charges shall
be levied for 2.4 kW.
2) In cases where the readings are recorded for the duration other than the respective days of the month,
the consumption shall be prorated for the month so as to arrive at the proportionate units eligible for
different slabs in a particular billing month. Accordingly, the Fixed and Energy Charges shall be
computed.
Illustration
Previous Meter Reading: 4
th
April 2023
Next Meter Reading: 10
th
May 2023
Consumption period: 36 days
Consumption: 450 units
Slab-wise consumption to be considered for billing:
Slab
Computation of Consumption
on Pro-rata basis
Units to be considered for
billing slab
0-50
50 units/30 days*36 days
60
51-150
100 units/30 days *36 days
120
151-300
150 units /30 days *36 days
180
Above 300
Balance Units
90
Total
450
(ii) Energy Charge and Fixed Charge for Temporary connections
Temporary connection
Energy Charge
(paise per unit)
Urban/ Rural areas
Monthly Fixed Charge
(Rs.)
Urban areas
Rural areas
Temporary connection for
construction of own house (max. up
to three years)
1.25 times the tariff applicable as per schedule LV 1.2 (i)
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 202
Temporary connection
Energy Charge
(paise per unit)
Urban/ Rural areas
Monthly Fixed Charge
(Rs.)
Urban areas
Rural areas
Temporary connection for social/
marriage purposes and religious
functions.
850
77 for each
one kW of
sanctioned or
connected or
recorded load,
whichever is
highest, for each
24 hours
duration or part
thereof.
62 for each
one kW of
sanctioned or
connected or
recorded load,
whichever is
highest, for
each 24 hours
duration or part
thereof.
Supply through DTR meter for
clusters of Jhuggi/Jhopadi till
individual meters are provided
355
NIL
NIL
(iii) Energy Charge and Fixed Charge for un-metered rural domestic connections
having connected load upto 500 watts:
Particulars
Units and Energy Charge to
be billed per month for
unmetered connections
(paise per unit)
Monthly Fixed Charge
(Rs.)
Un-metered connection in
rural areas having connected
load upto 500 watts
75 units @ 530 per unit
112 per connection
Specific Terms and Conditions for LV-1 category:
a) No minimum charges are applicable to this category of consumers. .
b) In case of prepaid consumers, a rebate of 25 paise per unit is applicable on the basic energy
charges. All other charges should be calculated on the Tariff applicable after rebate. A
consumer opting for prepaid meter shall not be required to make any security deposit.
c) Additional charge for Excess connected load or Excess demand: No extra charges are
applicable on the energy/fixed charges due to the excess demand or excess connected load.
d) In case of temporary requirement for renovation/upgradation of premises, load for such
temporary purpose is allowed to be used from existing metered connection on the same
tariff applicable for permanent connection subject to other terms and conditions of LT
Domestic Tariff.
e) Other terms and conditions shall be as specified under General Terms and Conditions for
Low Tension Tariff.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 203
Tariff Schedule LV - 2
NON-DOMESTIC:
LV 2.1
Applicability:
This tariff is applicable for light, fan and power to Schools / Educational Institutions including
workshops and laboratories of Engineering Colleges / Polytechnics/ITIs (which are registered with
/affiliated/ recognized by the relevant Govt. body or university), Hostels for students or working
women or sports persons.
Tariff:
Tariff shall be as given in the following table:
Sub category
Energy Charge
(paise/unit)
Urban/ Rural
areas
Monthly Fixed Charge (Rs.)
Urban areas
Rural areas
Sanctioned load based tariff
(only for connected load up
to 10 kW)
650
156 per kW
125 per kW
Demand based tariff
Mandatory for Connected
load above 10 kW
650
275 per kW or 220
per kVA of billing
demand
235 per kW or
188 per kVA of
billing demand
LV 2.2
Applicability:
This tariff is applicable for light, fan and power to Railways (for purposes other than traction and
supply to Railway Colonies/water supply), Shops/showrooms, Parlors, All Offices, Hospitals and
medical care facilities including Primary Health Centers, clinics, nursing homes belonging to either
Govt. or public or private organisations, public buildings, guest houses, Circuit Houses, Government
Rest Houses, X-ray plant, recognized Small Scale Service Institutions, clubs, restaurants, eating
establishments, meeting halls, places of public entertainment, circus shows, hotels, cinemas,
professional's chambers (like Advocates, Chartered Accountants, Consultants, Doctors etc.), bottling
plants, marriage gardens, marriage houses, advertisement services, advertisement boards/ hoardings,
training or coaching institutes, petrol pumps and service stations, tailoring shops, laundries,
gymnasiums, health clubs, telecom towers for mobile communication and any other establishment
which is not covered in other LV categories.
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Madhya Pradesh Electricity Regulatory Commission Page 204
Tariff:
Tariff shall be as given in the following table:
Sub category
Energy
Charge
(paise/unit)
Urban/
Rural areas
Monthly Fixed Charge (Rs.)
Urban areas
Rural areas
Sanctioned load based tariff (only for
connected load up to 10 kW) on all units
if monthly consumption is upto 50 units
630
82 per kW
67 per kW
Sanctioned load based tariff (only for
connected load up to 10 kW) on all units
in case monthly consumption exceeds 50
units
780
138 per kW
117 per kW
Demand based tariff (Mandatory for
Connected load above 10 kW)
690
296 per kW or
237 per kVA of
billing demand
214 per kW or
171 per kVA of
billing demand
Temporary connections including Multi
point temporary connection at LT for
Mela*
870
224 per kW or
part thereof of
sanctioned or
connected or
recorded load,
whichever is the
highest
195 per kW or
part thereof of
sanctioned or
connected or
recorded load
whichever is the
highest
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 205
Sub category
Energy Charge
(paise/unit)
Urban/ Rural areas
Fixed Charges (Rs.)
Urban areas
Rural areas
Temporary
connection for
marriage purposes at
marriage gardens or
marriage halls or
any other premises
covered under LV
2.1 and 2.2
categories
870 (Minimum
consumption charges
shall be billed @ 6
Units per kW or part
thereof of sanctioned
or connected or
recorded load,
whichever is the
highest for each 24
hours duration or part
there of subject to a
minimum of Rs.500/-)
87 for each kW
or part thereof of
sanctioned or
connected or
recorded load,
whichever is the
highest for each
24 hours
duration or part
thereof
67 for each kW or part
thereof of sanctioned
or connected or
recorded load,
whichever is the
highest for each 24
hours duration or part
thereof
* In case permission for organizing Mela is granted by Competent Authorities of the Government
of Madhya Pradesh.
Specific Terms and Conditions for LV-2 category:
a) Minimum charges: The consumer shall pay minimum annual charges based on
consumption of 240 units per kW or part thereof in urban areas and 180 units per kW or
part thereof in rural areas of sanctioned load or contract demand (in case of demand
based charges) irrespective of whether any energy is consumed or not during the year.
However, the load of X-Ray unit shall be excluded while considering the load of the
consumer for calculation of minimum charges. The method of billing of minimum
charges shall be as given in General Terms and Conditions of Low Tension tariff.
b) Additional Charge for Excess demand: Shall be billed as given in General Terms and
Conditions of Low Tension tariff.
c) For LV-2.1 and LV-2.2: For the consumers having connected load in excess of 10 kW,
demand based tariff is mandatory. The consumers having connected load upto and
including 10 kW may also opt for Demand based tariff.
d) In case of prepaid consumers, a rebate of 25 paise per unit is applicable on the basic
energy charges, all other charges should be calculated on the Tariff applicable after
rebate. A consumer opting for prepaid meter shall not be required to make any security
deposit.
e) Other terms and conditions shall be as specified under General Terms and Conditions of
Low Tension Tariff.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 206
Tariff Schedule LV – 3
PUBLIC WATER WORKS AND STREET LIGHTS
Applicability:
The tariff LV-3 is applicable for Public Utility Water Supply Schemes, Sewage Treatment Plants,
Sewage Pumping Installations run by P.H.E. Department or Local Bodies or Gram Panchayats or any
other organization authorised by the Government to supply/ maintain public water works / sewerage
installations, traffic signals and lighting of public streets or public places including parks, town halls,
monuments and its institutions, museums, public toilets, public libraries, reading rooms run by the
Government or Local Bodies, and Sulabh Shochalaya and shall also be applicable to electric
crematorium maintained by local bodies/trusts.
Note: Private water supply scheme, water supply schemes run by institutions for their own use/
employees/ townships etc. shall not fall in this category. These shall be billed under the
appropriate tariff category to which such institution belongs. In case water supply is being used
for two or more different purposes then entire consumption shall be billed for purpose for which
the tariff is higher.
Tariff:
Category of consumers/area of
applicability
Energy Charge
(paise per unit)
Monthly Fixed Charge
(Rs. per kW)
Minimum
Charges
(Rs)
LV 3
Municipal Corporation/
Cantonment board /Municipality
/ Nagar Panchayat
568
357
No
Minimum
Charges
Gram Panchayat
540
169
Specific Terms and Conditions for LV-3 category:
(a) Incentives for adopting Demand Side Management:
An incentive equal to 5 % of Energy Charges shall be given on installation and use of
energy saving devices (such as ISI energy efficient motors for pump sets and
programmable on-off/ dimmer switch with automation for street lights). Incentive will
be admissible only if full bill is paid within due dates failing which all consumed units
will be charged at normal rates. Such incentive will be admissible from the month
following the month in which energy saving devices are put to use and are verified by
a person authorized by the Distribution Licensee. This incentive will continue to be
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Madhya Pradesh Electricity Regulatory Commission Page 207
allowed till such time these energy saving devices remain in service. The Distribution
Licensee is required to arrange wide publicity of above incentive.
(b) The tariff for temporary connection shall be 1.25 times the applicable tariff.
(c) Other terms and conditions shall be as specified under General Terms and Conditions
of Low Tension Tariff.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 208
Tariff Schedule LV - 4
LT INDUSTRIAL
Applicability:
Tariff LV-4 is applicable to light, fan and power for operating equipment used by printing press and
any other industrial establishments and workshops (where any processing or manufacturing takes place
including tyre re-treading). These tariffs are also applicable to cold storage, gur (jaggery) making
machines, flour mills, Masala Chakkies, hullers, khandsari units, ginning and pressing units, sugar
cane crushers (including sugar cane juicing machine), power looms, dal mills, besan mills, and ice
factories and any other manufacturing or processing units (excluding bottling plant)
producing/processing food items or processing agriculture produce for preservation/increasing its shelf
life and Dairy units ( where milk is processed to produce other end products of milk other than chilling,
pasteurization etc.)
Tariff:
* In case of consumers having contract demand up to 20 HP/15 kW, the energy charges and fixed charges
shall be billed at a rate 30% less than the charges shown in above table for tariff category 4.1a.
Provided that consumers whose recorded maximum demand during a month is more than 20 HP/15 kW,
rebate of 30% shall not be applicable for that particular month.
S. No.
Category of
consumers
Monthly Fixed Charge (Rs.)
Energy Charge
(paise per unit)
– Urban / Rural
Area
Urban Areas
Rural Areas
4.2
Seasonal Consumers (This tariff shall be applicable to such seasonal industries /
consumers defined under this schedule)
4.2 a
During season
Normal tariff as for Non
seasonal consumers
Normal tariff as for Non
seasonal consumers
Normal tariff as
for Non seasonal
consumers
S. No.
Category of
consumers
Monthly Fixed Charge (Rs.)
Energy Charge
(paise per unit)
– Urban /
Rural Area
Urban Areas
Rural Areas
4.1
Non seasonal consumers
4.1 a
Demand based tariff*
(Contract demand up
to 150 HP/112kW)
320 per kW or 256 per
kVA of billing
demand
205 per kW or 164
per kVA of billing
demand
660
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 209
S. No.
Category of
consumers
Monthly Fixed Charge (Rs.)
Energy Charge
(paise per unit)
– Urban / Rural
Area
Urban Areas
Rural Areas
4.2 b
During Off -
season
Normal tariff as for
Non-seasonal consumers
on 10 % of contract
demand or actual
recorded demand,
whichever is more
Normal tariff as for
Non-seasonal consumers
on 10 % of contract
demand or actual
recorded demand,
whichever is more
120 % of normal
tariff as for Non-
seasonal
consumers
Terms and Conditions:
(a) The maximum demand of the consumer in each month shall be reckoned as four times
the largest amount of kilovolt ampere hours delivered at the point of supply of the
consumer during any continuous fifteen minutes in that month.
(b) Demand based tariff is mandatory for all the LT industrial consumers.
(c) Minimum Charges: Shall be as per following:
i. For LT Industries in rural areas: The consumer shall pay minimum annual
charges based on consumption (kWh) of 120 units per HP or part thereof, of
contract demand irrespective of whether any energy is consumed or not
during the year.
ii. For LT Industries in urban areas: The consumer shall pay minimum
annual charges based on consumption (kWh) of 240 units per HP or part
thereof, of contract demand irrespective of whether any energy is consumed
or not during the year.
iii. Method of billing of minimum charges for Non-Seasonal and Seasonal
consumers shall be as per the General Terms and Conditions of Low Tension
tariff.
(d) Additional Charge for Excess Demand: Shall be billed as given in the General
Terms and Conditions of Low Tension Tariff.
(e) Other Terms and conditions for seasonal consumers:
i. Season shall mean continuous period upto 6 months with a ceiling of 185 days.
ii. Period other than the declared season shall be considered as the off season
period.
iii. The consumer has to declare months of season and off season for a year within
60 days of issuance of this tariff order and inform the same to the Distribution
Licensee. The Year in this case shall be a period of 12 months commencing
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Madhya Pradesh Electricity Regulatory Commission Page 210
from start of season / off season, as applicable. If the consumer has already
declared the period of season and off-season prior to issuance of this order, same
shall be taken into cognizance for the purpose and accepted by the Distribution
Licensee.
iv. The seasonal period once declared by the consumer cannot be changed during
the year.
v. If the declared season or off-season spreads over two tariff periods, then the
tariff for the respective period shall be applicable.
vi. This tariff is not applicable to composite units having seasonal and other
category of loads.
vii. The consumer will be required to restrict his monthly off season consumption
to 15% of the highest of average monthly consumption during the preceding
three seasons. In case this limit is exceeded in any off season month, the
consumer will be billed under Non seasonal tariff for the whole year (as opted)
as per the tariff in force.
viii. The consumer will be required to restrict his maximum demand during off
season up to 30 % of the contract demand. In case the maximum demand
recorded in any month of the declared off season exceeds 36% of CD (120% of
30% of CD), the consumer will be billed under Non seasonal tariff for the whole
year (as opted) as per the tariff in force.
(f) The tariff for temporary connection for Non seasonal consumers shall be 1.25 times
the applicable tariff.
(g) Other terms and conditions shall be as specified under General Terms and Conditions
of Low Tension Tariff.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 211
Tariff Schedule LV - 5
AGRICULTURE AND ALLIED ACTIVITIES
Applicability:
The tariff LV-5.1 shall apply to connections for agricultural pump, chaff cutters, threshers, winnowing
machines, seeding machines, irrigation pumps of lift irrigation schemes including water drawn by
agriculture pumps for use by cattle and pump connections for the purpose of fodder farming associated
to Gaushalas.
The tariff LV-5.2 shall apply to connections for nurseries, farms growing flowers/ plants/ saplings/
fruits, mushroom and grasslands.
The tariff LV-5.3 shall apply to connections for fisheries ponds, aquaculture, sericulture, hatcheries,
poultry farms, cattle breeding farms and those dairy units only where extraction of milk and its
processing such as chilling, pasteurization etc. is done.
The tariff LV- 5.4 shall apply to connections for permanent agricultural pump, chaff cutters, threshers,
winnowing machines, seeding machines, irrigation pumps of lift irrigation schemes including water
drawn by agriculture pumps for use by cattle and pump connections for the purpose of fodder farming
associated to Gaushalas to whom flat rate tariff is applicable.
Tariff:
S. No.
Sub-Category
Monthly Fixed charges
Energy charges
(Rs. per HP)
(paise per unit)
LV- 5.1
a) (i)
First 300 units per month
60
489
(ii)
Above 300 units up to 750 units in the month
76
592
(iii)
Rest of the units in the month
84
620
b)
Temporary connections
84
620
c)
DTR metered group consumers
Nil
469
LV-5.2
a) (i)
First 300 units per month
60
489
(ii)
Above 300 units up to 750 units in the month
76
592
(iii)
Rest of the units in the month
84
620
b)
Temporary connections
84
620
LV-5.3
a)
Up to 25 HP in urban areas
122 per HP
545
b)
Up to 25 HP in rural areas
91 per HP
528
c)
Demand based tariff (Contract demand up
to 150 HP) (Mandatory above 25 HP) in
urban areas
281 per kW or 225 per
kVA of billing demand
620
d)
Demand based tariff (Contract demand up
150 per kW or 120 per
620
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 212
S. No.
Sub-Category
Monthly Fixed charges
Energy charges
(Rs. per HP)
(paise per unit)
to 150 HP) (Mandatory above 25 HP) in
rural areas
kVA of billing demand
LV-5.4
See para 1.2 of terms & conditions
Note: The agriculture consumers in urban area connected to a feeder other than separated
agriculture feeder will be billed as per consumption recorded in the meter. Existing unmetered
consumers may be billed as per flat rate till meters are installed. DISCOMs must ensure that
meters on all such connections are installed by the end of the current financial year.
Terms and Conditions:
1.1 Billing of consumers under tariff schedule LV 5.1: Billing to the consumers covered
under tariff schedule LV 5.1 shall be done on a monthly basis based on the consumption
recorded in the meter. Unmetered temporary connection under this schedule shall be billed
on the basis of assessment of consumption provided under condition 1.3 (iii) of this
schedule.
1.2 Billing of consumers under tariff schedule LV 5.4:
The bill for the consumer covered under the tariff category LV 5.4 shall be calculated at the
rates specified under the tariff schedule LV 5.1 based on norms for assessment of units per
HP specified under condition 1.3 of this schedule. In event of tariff subsidy for consumers,
action as mandated under Section 65 of the Electricity Act, 2003 shall be ensured by all
concerned and such consumers shall be billed accordingly by the Distribution Licensees.
1.3 Basis of energy audit and accounting for categories LV 5.1 and LV 5.4:
i) For energy audit and accounting purposes, actual billed consumption of LV 5.4
and metered consumers covered under tariff schedule LV 5.1 shall be
considered.
ii) For unmetered agriculture consumers under LV 5.4 category, assessed
consumption shall be as per following norms:
Particulars
No. of units per HP of sanctioned load per month
Urban/Rural Area
Type of Pump/Motor
April to Sept
Oct to March
Three Phase
95
170
Single Phase
95
180
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Madhya Pradesh Electricity Regulatory Commission Page 213
iii) For unmetered temporary agriculture consumers under LV 5.1 category, assessed
consumption shall be as per following norms:
Particulars
No. of units per HP of sanctioned load per month
Type of Pump/ Motor
Urban Area
Rural Area
Three Phase
220
195
Single Phase
230
205
1.4 Agricultural consumers opting for temporary supply shall have to pay the charges in
advance for three months including those who request to avail connection for one month
only subject to replenishment from time to time for extended period and adjustment as per
final bill after disconnection. Regarding temporary connection for the purpose of threshing
the crops, temporary connection for a period of one month can be served at the end of Rabi
and Kharif seasons only with payment of one month’s charges in advance.
1.5 Following incentive* shall be given to the metered agricultural consumers on installation
of energy saving devices –
S. No.
Particulars of Energy Saving Devices
Rate of rebate
1.
ISI / BEE star labeled motors for pump sets
15 paise per unit
2.
ISI / BEE star labeled motors for pump sets and use of
frictionless PVC pipes and foot valve
30 paise per unit
3.
ISI / BEE star labeled motors for pump sets and use of
frictionless PVC pipes and foot valves along with
installation of shunt capacitor of appropriate rating
45 paise per unit
*Incentive shall be allowed on the consumer’s contribution part of the normal tariff (full tariff minus
amount of Govt. subsidy per unit, if any) for installation of energy saving devices under demand side
management. This incentive will be admissible only if full bill is paid within due dates failing which
all consumed units will be charged at normal rates. Incentive will be admissible from the month
following the month in which Energy Saving Devices are put to use and its verification by a person
authorized by the Distribution Licensee. The Distribution Licensee is required to arrange wide
publicity to above incentive in rural areas. The licensee is required to place quarterly information
regarding incentives provided on its website.
1.6 Minimum Charges
(i) For Metered agricultural consumers (LV-5.1 and LV-5.2): The consumer shall
pay a minimum charge based on consumption of 30 units per HP or part thereof of
connected load per month for the months from April to September and 90 units per
HP or part thereof of connected load per month for the months from October to
March irrespective of whether any energy is consumed or not during the month.
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Madhya Pradesh Electricity Regulatory Commission Page 214
(ii) For other than agricultural use (LV-5.3):
a) The consumer shall pay a minimum annual charge based on consumption (kWh)
of 180 units/HP or part thereof of contract demand in notified rural areas and 360
units/HP or part thereof of contract demand in urban areas irrespective of whether
any energy is consumed or not during the year.
b) The consumer shall be billed monthly minimum 15 units per HP per month in
rural area and 30 units per HP per month in urban area in case the actual
consumption is less than monthly minimum consumption (kWh).
c) Method of billing of minimum consumption shall be as given in the General
Terms and Conditions of Low Tension Tariff.
1.7 Additional Charge for Excess Demand: Shall be billed as given in the General Terms and
Conditions of Low Tension Tariff.
1.8 Delayed payment surcharge in case of agriculture consumers on LV - 5.4 flat rate tariff
shall be levied @ of Rs 1 every month for each block or part thereof of arrears of Rs.100/-.
For other sub categories of this Tariff Schedule, the delayed payment surcharge shall be billed
as specified under General Terms and Conditions of Low Tension Tariff.
1.9 Specific conditions for DTR metered consumers:
a) All the consumers connected to the DTR shall pay the energy charges for the units
worked out based on their actual connected load.
b) The Distribution Licensee will obtain consent of such connected consumers for billing
as per procedure specified in (a) above.
1.10 One CFL/ LED lamp up to 20 Watt is permitted at or near the pump in the power circuit.
1.11 The use of three phase agriculture pump by installing external device during the period when
the supply is available on single phase, shall be treated as illegal extraction of energy and
action as per prevailing rules and Regulations shall be taken against the defaulting consumer.
1.12 Other terms and conditions shall be as specified under General Terms and Conditions of Low
Tension Tariff.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 215
Tariff Schedule LV - 6
E- VEHICLE / E-RICKSHAWS CHARGING STATIONS
Applicability:
The tariff is applicable exclusively for Electric Vehicle / Electric Rickshaws charging and battery
swapping stations. However, tariff for other consumers who use electricity for charging their own
Vehicle / Rickshaws shall be the same as applicable for the relevant category of metered connection
from which the Vehicle / Rickshaws are being charged.
Applicable Tariff:
Category
Energy Charge
(Paise/unit)
Electric Vehicle/ Rickshaw
charging installations
679
a) Other terms and conditions shall be as specified under General Terms and Conditions of
Low Tension Tariff.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 216
GENERAL TERMS AND CONDITIONS OF LOW-TENSION TARIFF
1. Rural Areas mean those areas notified by the GoMP vide notification no. 2010/F13 /05/13/2006
dated 25
th
March 2006 as may be amended from time to time. Urban areas mean all areas other
than those notified by the GoMP as Rural Areas.
2. Tariff for Green Energy shall be inclusive of normal tariff as applicable to that category of
consumer and Green Energy Charges as mentioned in Clause 12 of General Terms and Conditions
of LT Tariff.
3. Rounding off: All bills will be rounded off to the nearest rupee i.e. up to 49 paisa shall be ignored
and 50 paisa upwards shall be rounded off to next Rupee.
4. Billing Demand: In case of demand based tariff, the billing demand for the month shall be the
actual maximum kVA demand of the consumer during the month or 90% of the contract demand,
whichever is higher. The billing demand shall be rounded off to the nearest integer number i.e.
fraction of 0.5 or above will be rounded to next higher integer and the fraction of less than 0.5 shall
be ignored.
5. Fixed charges billing: Unless specified otherwise, fractional load for the purposes of billing of
fixed charges shall be rounded off to nearest integer i.e. fraction of 0.5 or above will be rounded to
next higher integer and the fraction of less than 0.5 shall be ignored. However, for loads less than
one kW/HP, it shall be treated as one kW/HP.
6. Method of billing of Minimum Charges:
A. For agricultural consumers (LV-5.1 and LV 5.2): For recovering minimum charges the
consumer shall be billed minimum monthly consumption (kWh) specified for his category
for the month in which his actual consumption is less than prescribed minimum
consumption.
B. For other consumers where applicable:
i. The consumer shall be billed one twelfth of annual minimum consumption (kWh)
specified for his category each month in case the actual consumption is less than above
mentioned minimum consumption. However, for Seasonal consumers the annual
minimum consumption shall be equally distributed during seasonal months and during
off season only actual consumption shall be considered for billing subject to adjustment
of actual cumulative consumption against cumulative minimum consumption.
ii. During the month in which actual cumulative consumption equals or is greater than the
annual minimum consumption, no further billing of monthly minimum consumption shall
be done in subsequent months of the financial year and only actual recorded consumption
shall be billed.
iii. Minimum consumption shall be adjusted in the month in which cumulative actual or
billed monthly consumption exceeds cumulative monthly prorated minimum annual
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consumption. If actual cumulative consumption does not get fully adjusted in that month,
adjustment shall continue to be provided in subsequent months of the financial year. The
following example illustrates the procedure for monthly billing of consumption where
prorated monthly minimum consumption is 100 kWh based on annual consumption of
1200 kWh.
Month
Actual
cumulative
consumption
(kWh)
Cumulative
minimum
consumption
(kWh)
Higher of 2
and 3
(kWh)
Already
billed in the
year (kWh)
To be billed
in the month
= (4-5)
(kWh)
1
2
3
4
5
6
April
95
100
100
0
100
May
215
200
215
100
115
June
315
300
315
215
100
July
395
400
400
315
85
Aug
530
500
530
400
130
Sept
650
600
650
530
120
Oct
725
700
725
650
75
Nov
805
800
805
725
80
Dec
945
900
945
805
140
Jan
1045
1000
1045
945
100
Feb
1135
1100
1135
1045
90
March
1195
1200
1200
1135
65
7. Additional Charge for Excess connected load or Excess Demand: Shall be billed as per the
following procedure:
a) For demand based tariff: The consumers availing supply at demand based tariff shall
restrict their actual maximum demand within the contract demand. However, in case the
actual maximum demand recorded in any month exceeds 120% of the contract demand, the
tariff in this schedule shall apply to the extent of 120 % of the contract demand only. The
consumer shall be charged for demand recorded in excess of 120% of contract demand
(termed as Excess Demand) at the following rates: -
i. Energy charges for Excess Load: No extra charges are applicable on energy
charges due to excess demand or excess connected load
ii. Fixed Charges for Excess Demand: These charges shall be billed as per the
following:
1. Fixed Charges for Excess Demand when the recorded maximum
demand is up to 130% of the contract demand: Fixed Charges for Excess
Demand over and above the 120 % of contract demand shall be charged at
1.3 times the normal rate of Fixed Charges.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 218
2. Fixed Charges for Excess Demand when the recorded maximum
demand exceeds 130% of contract demand: In addition to Fixed Charges
in 1 above, recorded demand over and above 130 % of the contract demand
shall be charged at 2 times the normal rate of Fixed Charges.
b) For connected load based tariff: The consumers availing supply at connected load based
tariff shall restrict their actual connected load within the sanctioned load. However, in case
the actual connected load in any month exceeds 120% of the sanctioned load, the tariff in
this schedule shall apply to the extent of 120 % of the sanctioned load only. The consumer
shall be charged for the connected load found in excess of 120% of the sanctioned load
(termed as Excess Load) at the following rates:-
i. Energy charges for Excess Load: No extra charges are applicable on energy
charges due to excess demand or excess connected load
ii. Fixed Charges for Excess load: These charges shall be billed as per the
following, for the period for which the use of excess load is determined in
condition i) above:
1. Fixed Charges for Excess load when the connected load is found up to
130% of the sanctioned load: Fixed Charges for Excess load over and above
the 120 % of sanctioned load shall be charged at 1.3 times the normal rate of
Fixed Charges.
2. Fixed Charges for Excess load when the connected load exceeds 130%
of sanctioned load: In addition to Fixed Charges in 1 above, connected load
found over and above 130 % of the sanctioned load shall be charged at 2
times the normal rate of Fixed Charges.
c) The above billing for Excess Connected Load or Excess Demand, applicable to consumers
is without prejudice to the Distribution Licensee’s right to ask for revision of agreement
and other such rights that are provided under the Regulations notified by the Commission
or under any other law.
d) The maximum demand of the consumer in each month shall be reckoned as four times the
largest amount of kilovolt-ampere hours delivered at the point of supply of the consumer
during any continuous fifteen minutes in that month.
8. Incentives/Rebates:
(a) Rebate on advance payment: For advance payment made before commencement of
consumption period for which bill is prepared, a rebate at one twelfth of annual interest
rate in percentage applicable on working capital shall be given on the amount
(excluding security deposit), which remains with the Distribution Licensee at the end
of billing month. However, such amount shall be credited to the account of the
consumer after adjusting any amount payable to the Distribution Licensee.
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Madhya Pradesh Electricity Regulatory Commission Page 219
(b) Incentive for prompt payment: An incentive for prompt payment @ 0.50% of the bill
amount (excluding security deposit, any subsidy given by Government and Government
levies viz. Electricity Duty and Cess etc.) shall be given in case the payment is made at
least 7 days in advance of the due date of payment where the current month billing
amount is equal to or greater than Rs. Ten Thousand. The consumers in arrears shall
not be entitled for this incentive.
(c) Rebate for online bill payment: Rebate of 0.50% on the total bill amount maximum
up to Rs 20 and minimum of Rs 5 will be applicable for making online payment of bill.
Provided that the consumers covered under LV-1: Domestic, shall be eligible for rebate
of 0.50%, without any ceiling on maximum rebate amount.
(d) Load Factor incentive: Following slabs of incentive shall be allowed for consumers
billed under demand based tariff:
Load factor
Concession in energy charges
Above 25% and up to 30 % load factor
on contract demand
12 paise per unit concession on the normal energy charges
for all energy consumption over and above 25% load factor
during the billing month
Above 30% and up to 40 % load factor
on contract demand
In addition to load factor concession available up to 30%
load factor, concession at the rate of 24 paise per unit on the
normal energy charges for all energy consumption over and
above 30 % load factor during the billing month
Above 40% load factor on contract
demand
In addition to load factor concession available up to 40%
load factor, concession at the rate of 36 paise per unit on the
normal energy charges for all energy consumption over and
above 40% load factor during the billing month
The load factor shall be calculated as per the following formula:
Monthly consumption X 100
Load factor (%) = ----------------------------------------------------------------------------
No. of hours in the billing month X Demand (KW)
i. Monthly consumption shall be units (kWh) consumed in the month excluding those
received from sources other than Licensee.
ii. No. of Hours in billing month shall exclude period of scheduled outages in hours.
iii. Demand shall be maximum demand recorded or contract demand whichever is higher.
Note: The Load Factor (%) shall be rounded off to the nearest lower integer. The billing
month shall be the period in number of days between the two consecutive dates of meter
readings taken for the purpose of billing to the consumer for the period under
consideration as a month.
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Madhya Pradesh Electricity Regulatory Commission Page 220
(e) Power Factor Incentive:
If the average monthly power factor of the consumer (other than LV-1: Domestic Consumer)
is more than 86% or above, incentive shall be payable as follows:
Average Monthly Power Factor
Percentage incentive payable on billed energy charges
86%
0.5
87%
1.0
88%
1.5
89%
2.0
90%
2.5
91%
3.0
92%
3.5
93%
4.0
94%
4.5
95%
5.0
96%
6.0
97%
7.0
98%
8.0
99%
9.0
100%
10.0
For this purpose, the “average monthly power factor” shall have the same meaning as in
Madhya Pradesh Electricity Supply Code, 2021, as amended from time to time.
Provided that this Incentive shall be billed on the basis of energy actually consumed during
the month.
All the rebates/incentives shall be calculated on amount excluding Government
Subsidy, if any.
9. Other Terms and Conditions:
(a) The Sanctioned Load / Connected Load (for sanctioned load based tariff) or Contract
Demand (for demand based tariff), as the case may be, should not exceed 112kW / 150
HP except where a higher limit is specified or the category is exempted from the ceiling
on connected load. If the consumer exceeds his connected load or contract demand as
the case may be beyond this ceiling in two consecutive billing months during the tariff
period, the Distribution Licensee may insist on the consumer to avail HT supply.
(b) No metering charges shall be levied.
(c) In case the cheque presented by the consumer is dishonoured, without prejudice to
Distribution Licensee’s rights to take recourse to such other action as may be available
under the relevant law, a service charge of Rs. 150 plus applicable GST per cheque
shall be levied in addition to delayed payment surcharge
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Madhya Pradesh Electricity Regulatory Commission Page 221
(d) Other charges, wherever applicable shall be as specified in Madhya Pradesh Electricity
Regulatory Commission (Recovery of Expenses and other Charges for providing
Electric Line or Plant used for the purpose of giving Supply) Regulations, 2022 and
amendments thereof.
(e) Existing LT power consumer (other than LV-1: Domestic Consumer) shall ensure that
LT capacitor of proper rating is provided. In this regard, the Madhya Pradesh Electricity
Supply Code, 2021, as amended from time to time may be referred for guidance. It shall
be the responsibility of the consumer to ensure that overall average power factor during
any month is not less than 0.8 (80%) failing which the consumer shall be liable to pay
low power factor surcharge on the entire billed amount against energy charges during
the month. Provided that such surcharge shall be billed on the basis of energy actually
consumed during the month. Power factor surcharge shall be billed at the rates given
below in e(1) and e(2):
e(1) For the consumer whose meter is capable of recording average power factor:
Power Factor
Percentage Surcharge payable
on billed energy charges
79%
1%
78%
2%
77%
3%
76%
4%
75%
5%
74%
6.25%
73%
7.50%
72%
8.75%
71%
10.00%
Below 71%
10.00%
For this purpose, the “average monthly power factor” shall have the same meaning
as in Madhya Pradesh Electricity Supply Code, 2021, as amended from time to
time.
In case of billing or credit of minimum consumption such surcharge shall be billed
with respect to energy actually consumed during the month.”
e(2) For the consumer other than e(1) above: The consumer (other than LV-1:
Domestic Consumer) shall ensure that LT capacitors of proper rating are provided
and are in good working condition. In this regard, the Madhya Pradesh Electricity
Supply Code, 2021, as amended from time to time may be referred for guidance.
In case of failure to meet the above criteria, the consumer would be levied a low
power factor surcharge of 10% on the entire billed amount against energy charges
during the month and would be continued to be billed till such time the consumer
meets the above criteria.
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Madhya Pradesh Electricity Regulatory Commission Page 222
In case of billing or credit of minimum consumption such surcharge shall be billed
with respect to energy actually consumed during the month.”
(f) Levy of power factor surcharge as indicated hereinabove shall be without prejudice to
the rights of the Licensee to disconnect the consumer’s installation, if steps are not taken
to improve the power factor by installing suitable shunt capacitors.
(g) In case of any dispute on applicability of tariff on a particular LT category, the decision
of the Commission shall be final.
(h) The tariff does not include any tax, cess or duty, etc. on electrical energy that may be
payable at any time in accordance with any law then in force. Such charges, if any, shall
also be payable by the consumer in addition to the tariff charges and applicable
miscellaneous charges.
(i) Delayed payment Surcharge for all categories: Surcharge at the rate of 1.25 % per
month or part thereof on the amount outstanding (including arrears) will be payable if
the bills are not paid up to due date subject to a minimum of Rs.5/- per month for total
outstanding bill amount up to Rs. 500/- and Rs 10/ per month for amount of bill more
than Rs.500/. The part of a month will be reckoned as full month for the purpose of
calculation of delayed payment surcharge. The delayed payment surcharge will not be
levied for the period after supply to the consumer is permanently disconnected.
However, for the temporary connection, if any, amount is outstanding after
disconnection, Delayed Payment Surcharge at the rate of 1.25% per month or part
thereof shall be applicable as per Madhya Pradesh Electricity Supply Code, 2021 as
amended from time to time.
(j) In case of conversion of LT connection into HT connection, it is mandatory on the part
of both the consumer and the licensee to get the HT agreement executed before availing
supply at HT.
(k) Use of mix loads in one connection: Unless otherwise permitted specifically in the tariff
category, the consumer using mix loads for different purposes shall be billed for the
purpose for which the tariff is higher.
(l) Consumers in the notified Industrial Growth Centres/Industrial areas/Industrial parks
receiving supply under urban discipline shall be billed urban tariff.
(m) No change in the tariff or the tariff structure including minimum charges for any
category of consumer is permitted except with prior written permission from the
Commission. Any action taken without such written permission of the Commission
shall be treated as null and void and shall also be liable for action under relevant
provisions of the Electricity Act, 2003.
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Madhya Pradesh Electricity Regulatory Commission Page 223
(n) All conditions prescribed herein shall be applicable to the consumer notwithstanding if
any contrary provisions exist in the agreement entered into by the consumer with the
licensee.
(o) If any difficulty arises in giving effect to any of the provisions of this order, the
Commission may, by general or special order, direct the Licensees to do or undertake
things, which in the opinion of the Commission is necessary or expedient for the
purpose of removing the difficulties.
10. Additional conditions for Temporary Supply at LT:
Temporary supply cannot be demanded by a prospective/ existing consumer as a matter of right
but will normally be arranged by the Distribution Licensee when a requisition giving due notice
is made. The temporary additional supply to an existing consumer also shall be treated as a
separate service and charged subject to following conditions. However, service under Tatkal
Scheme shall be made available within 24 hours subject to charges as specified in Madhya
Pradesh Electricity Regulatory Commission (Recovery of Expenses and other Charges for
providing Electric Line or Plant used for the purpose of giving Supply) Regulations, 2022 and
amendments thereof.
(a) Fixed Charge and Energy Charge for temporary supply shall be billed at 1.25 times the
normal charges as applicable to relevant category if not specified otherwise specifically.
(b) Estimated bill amount is payable in advance before serving the temporary connection
subject to replenishment from time to time and adjustment as per final bill after
disconnection. No interest shall be given to consumers for this advance payment.
(c) The Sanctioned load / connected load (for sanctioned load based tariff) or contract
demand (for demand based tariff), as the case may be, shall not exceed 112kW / 150
HP.
(d) The month for the purpose of billing of charges for temporary supply shall mean 30
days from the date of connection. Any period less than 30 days shall be treated as full
month for the purpose of billing.
(e) Connection and disconnection charges and other miscellaneous charges shall be paid
separately as specified in Madhya Pradesh Electricity Regulatory Commission
(Recovery of Expenses and other Charges for providing Electric Line or Plant used for
the purpose of giving Supply) Regulations, 2022 and amendments thereof.
(f) Load factor concession shall not be allowed on the consumption for temporary
connection.
(g) Power factor incentive/penalty shall be applicable at the same rate as applicable for
permanent connection.
11. Consumers availing Green Energy from Distribution Licensee only for the purpose of reducing
their carbon footprint and seeking Certification to this effect shall be required to pay Green Energy
Charges at the rate of Rs. 0.97/kWh and such charges shall be applicable over and above the normal
tariff for that category of consumers. This facility shall be available to consumers opting for
meeting at least 25% of their monthly consumption of electricity and subsequently in steps of 5%
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 224
of monthly consumption over and above 25 % from Green Energy during any billing month.
Further, such consumers may avail Green Energy for any number of days in a billing month subject
to meeting consumption criteria as mentioned above.
12. The Consumers availing green energy from Distribution Licensee in accordance with provisions
of MPERC (Co-generation and generation of electricity from Renewable sources of energy)
Regulations, 2021 and amendments thereof, shall be required to pay Green Energy Charges at Rs.
0.25/ kWh for Wind, Rs. 3.10/ kWh for HPO and Rs. 0.96/ kWh for Other, which shall be over and
above the normal tariff of respective consumer category as per this Tariff Order.
13. Standby Charges:- Standby Charges for the purpose of Madhya Pradesh Electricity Regulatory
Commission (Methodology for determination of Open Access charges and Banking charges for
Green Energy Open Access consumers) Regulations, 2023 as amended from time to time, shall be
0.25 times of the tariff applicable to the consumer availing Green Energy Open Access, which shall
be over and above the normal tariff of the respective consumer category.
14. The accounting and settlement for consumers availing net metering facility shall be as per Madhya
Pradesh Electricity Regulatory Commission (Grid Interactive Renewable Energy System and
Related Matters) Regulations, 2022 as amended from time to time.
15. Wherever, there is contradiction in general terms & conditions and specific terms & conditions
given for any particular category, the specific terms and conditions shall prevail for that category.
………………………………………………………………………………
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 225
Annexure-3 (Tariff Schedules for High Tension Consumers)
ANNEXURE TO THE TARIFF ORDER PASSED BY MPERC FOR
FINANCIAL YEAR 2023-24
MADHYA PRADESH ELECTRICITY REGULATORY COMMISSION
TARIFF SCHEDULES FOR HIGH TENSION CONSUMERS
Table of Contents
Tariff Schedule - HV - 1 .................................................................................................................... 226
Tariff Schedule - HV - 2 .................................................................................................................... 229
Tariff Schedule - HV - 3 .................................................................................................................... 230
Tariff Schedule - HV - 4 .................................................................................................................... 237
Tariff Schedule - HV - 5 .................................................................................................................... 239
Tariff Schedule - HV - 6 .................................................................................................................... 241
Tariff Schedule - HV - 7 .................................................................................................................... 242
Tariff Schedule - HV - 8 .................................................................................................................... 243
Tariff Schedule - HV - 9 .................................................................................................................... 244
General Terms and Conditions of High-Tension Tariff…………………………………………….245
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Madhya Pradesh Electricity Regulatory Commission Page 226
Tariff Schedule - HV - 1
RAILWAY TRACTION:
Applicability:
This Tariff shall apply to the Railways for Traction loads only.
Tariff:
S. No.
Category of consumer
Monthly Fixed Charge (Rs.
per kVA of billing demand
per month)
Energy Charge
(paise / unit)
1
Railway Traction on
132 kV / 220 kV
320
605
Note: A rebate of Rs. 2 per Unit in energy charges is applicable. This rebate shall be
applicable up to FY 2023-24.
Specific Terms and Conditions:
(a) In order to give impetus to electrification of Railway network in the State, a rebate of
15% in energy charges for new Railway traction projects shall be allowed for a period
up to FY 2023-24 for new projects. The rebate provided in earlier orders shall remain
in force at the rate and for the duration as mentioned in those tariff orders.
(b) The dedicated feeder maintenance charges shall not be applicable.
(c) Annual Minimum charges shall be based on minimum consumption of 1500 units
(kWh) per kVA of Contract Demand. The method of billing of minimum charges shall
be as given in General Terms and Conditions of High Tension Tariff.
(d) The consumer shall at all times restrict their actual maximum demand within the
contract demand. In case the actual maximum demand in any month exceeds 120% of
the contract demand, the tariffs given in various schedules shall apply to the extent of
the 120% of the contract demand only. The consumer shall be charged for excess
demand computed as difference of recorded maximum demand and 120% of contract
demand on fixed charges and while doing so, the other terms and conditions of tariff, if
any, shall also be applicable on the said excess demand.
(e) Energy charges for excess demand: No extra charges are applicable on the energy
charges due to the excess demand or excess connected load.
(f) The excess demand so computed as per above, if any, in any month shall be charged at
the following rates:
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Madhya Pradesh Electricity Regulatory Commission Page 227
(a) When the recorded maximum demand is up to 130% of contract demand-
Excess Demand over and above 115 % of the contract demand—at the rate
of Rs. 352 per kVA
(b) When the recorded maximum demand exceeds 130% of contract demand:
- In addition to fixed charges in (a) above, recorded demand over and
above 30 % of the contract demand shall be charged—at the rate of Rs.
480 per kVA
While doing so, other provisions of electricity tariff (such as tariff minimum charge
etc.) will also be applicable on aforesaid excess demand.
(g) Power Factor Penalty:
i. If the average monthly power factor of a consumer falls to 89 percent or below but
upto 85 %, penalty will be levied at the rate of one percent of total energy charges
for the month for each one percent fall in the average monthly power factor below
90 percent. For determination of power factor, lag only logic shall be used and
no power factor penalty shall be levied if leading power factor is recorded.
ii. If the average monthly power factor of a consumer falls to 84 percent or below, the
consumer shall be levied a penalty of 5% (five percent) plus @ 2% (two percent)
for each one percent fall in his average monthly power factor below 85 percent, on
the total amount of bill under the head of “Energy Charge”. This penalty shall be
subject to the condition that overall penalty on account of low power factor does
not exceed 35%.
iii. For this purpose, the “average monthly power factor” shall have the same meaning
as in Madhya Pradesh Electricity Supply Code, 2021, as amended from time to time.
iv. Notwithstanding what has been stated above, if the average power factor of a new
connection of the consumer is found to be 89% or less in any month during the first
6 (six) months from the date of connection, the consumer shall be entitled to a
maximum period of six months to improve it to not less than 90% subject to
following conditions:
• This period of six months shall be reckoned from the month in which the
average power factor was found for the first time to be 89% or less.
• In all cases, the consumer will be billed penal charges for low power factor,
but in case the consumer maintains the average power factor in subsequent
three months (thus in all four months) to not less than 90%, the charges on
account of low power factor billed during the said six months period, shall be
withdrawn and credited in next monthly bills.
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Madhya Pradesh Electricity Regulatory Commission Page 228
• The facility, as mentioned herein, shall be available not more than once to new
consumer whose average power factor is 89% or less at any time during 6
months from the date of connection. Thereafter, the charges on account of low
average power factor, if found 89% or less, shall be payable as by any other
consumer.
(h) Emergency feed extension: Provided that if as a result of the emergency in the traction
substation or in the transmission line supplying load or part thereof is transferred to an
adjacent traction substation, the M.D. for the month for that adjacent traction substation
shall be as the average of M.D. for previous three months during which no emergency
had occurred.
(i) Other terms and conditions shall be as mentioned in the General Terms and Conditions
of High Tension Tariff.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 229
Tariff Schedule - HV – 2
COAL MINES:
Applicability:
This Tariff shall apply to the Coal Mines for power, ventilation, lights, fans, coolers, etc. which shall
mean and include all energy consumed for coal mines and lighting in the offices, stores, canteen,
compound lighting etc. and the consumption for residential use therein.
Tariff:
Sub category
Monthly Fixed
Charge (Rs./kVA
of billing demand
per month)
Energy Charge for
consumption up to
50% load factor
(paise / unit)
Energy Charge for
consumption in
excess of 50% load
factor
(paise / unit)
Coal Mines
11 kV supply
715
751
665
33 kV supply
743
644
132 kV supply
723
623
220 kV supply
701
601
Specific Terms and Conditions:
a. Minimum Charges based on Consumption shall be on the following basis:
Supply Voltage
Annual minimum consumption in
units (kWh) per kVA of contract
demand
For supply at 220 / 132 kV
1620
For supply at 33 / 11 kV
1200
Note: The method of billing of minimum charges shall be as given in General Terms and
Conditions of High Tension Tariff.
b. Time of Day (ToD) Rebate: This rebate shall be as specified in General Terms
and Conditions of High Tension Tariff.
c. Other terms and conditions shall be as specified under General Terms and
Conditions of High Tension Tariff.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 230
Tariff Schedule - HV - 3
INDUSTRIAL, NON-INDUSTRIAL AND SHOPPING MALLS
Applicability:
The tariff HV-3.1(Industrial) shall apply to all HT industrial consumers including mines (other than
coal mines) for power, light and fan etc. which shall mean and include all energy consumed for factory
and lighting in the offices, main factory building, stores, canteen, residential colonies of industries,
compound lighting, common and ancillary facilities such as Telecom tower, Banks, General purpose
shops, Water supply, Sewage pumps, Police Stations, etc. located within the premises of the industrial
units and Dairy units where milk is processed (other than chilling, pasteurization etc.) to produce other
end products of milk. This tariff shall also apply to cold storages.
The tariff HV-3.2 (Non Industrial) shall apply to establishments like Railway Stations, Offices,
Hotels, Hospitals, Institutions etc. (excluding group of consumers) having mixed load for power, light
and fan etc. which shall mean and include all energy consumed for lighting in the offices, stores,
canteen, compound lighting etc. This shall also cover all other categories of consumers, defined in LT
non-domestic category subject to the condition that the HT consumer shall not redistribute/sub-let the
energy in any way to other person.
The tariff HV-3.3 (Shopping malls) shall apply to establishments of shopping malls having group of
non-industrial consumers subject to the specific terms and conditions specified in (i) of this schedule.
Shopping Mall shall be a multi-storeyed shopping centre in an urban area having a system of enclosed
walkways with collection of independent retail stores, services and parking areas constructed and
maintained by a management firm/ developer as a unit.
The tariff HV-3.4 (Power intensive industries) shall apply to Mini Steel Plants (MSP), MSP with
rolling mills/ sponge iron plants in the same premises, electro chemical/ electro thermal industry, Ferro
alloy industry which shall mean and include all energy consumed for factory and lighting in the offices,
main factory building, stores, canteen, residential colonies of industries, compound lighting etc
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 231
Tariff:
S. No.
Sub-Category of consumer
Monthly Fixed
Charge (Rs./kVA
of billing demand
per month)
Energy Charge
for consumption
up to 50% load
factor
(paise / unit)
Energy Charge
for consumption
in excess of 50%
load factor
(paise / unit)
3.1
Industrial
11 kV supply
384
730
630
33 kV supply
616
726
621
132 kV supply
704
685
586
220/400 kV supply
704
640
540
3.2
Non-Industrial
11 kV supply
348
770
680
33 kV supply
501
753
655
132 kV supply & above
593
705
595
3.3
Shopping Malls
11 kV supply
356
750
675
33 kV supply & above
413
740
635
3.4
Power intensive industries
33 kV supply
627
565
565
132 kV supply & above
766
541
541
Specific Terms and Conditions:
(a) Minimum Charges based on Consumption for all the above categories shall be on
following basis:
Supply Voltage
Sub- category
Annual minimum
consumption in units
(kWh) per kVA of
contract demand
For supply at 132
kV & above
Rolling Mills
1200
Educational institutions
720
Others
1800
For supply at 33 / 11
kV
Educational institutions
600
Contract demand up to 100 kVA
600
Others
1200
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 232
Note: The method of billing of minimum charges shall be as given in General Terms and Conditions of
High Tension Tariff.
(b) Time of Day (ToD) Rebate: This rebate shall be as specified in General Terms and
Conditions of High Tension Tariff.
(c) Rebate for supply through feeders feeding supply to predominantly rural areas:
HT consumers of this category receiving supply through rural feeders shall be entitled
to 5 % rebate on Fixed Charges and 20 % reduction in Minimum Consumption (kWh)
as specified above for respective voltage levels.
(d) Rebate for existing HT connections: A rebate of Rs. 1 per Unit in energy charges is
applicable for incremental monthly consumption w.r.t corresponding month of FY
2015-16. For any new consumer served during and after FY 2015-16, the base months
for calculation of incremental monthly consumption shall be the first 12 months
subsequent to the month of availing the connection. The incremental consumption for
any month shall be worked out considering the consumption of the corresponding base
month.
The consumer availing this rebate shall not be entitled to the rebate of new HT
connection/ Green field connection under clause (e) below.
(e) Rebate for new HT connections: A rebate of Rs 1 per Unit or 20% whichever would
be less is applicable in energy charges for new connection for the consumption
recorded. The rebate shall be allowed upto FY 2023-24 from the date of connection for
such new projects for which agreements for availing supply from licensee are finalized
during and after FY 2016-17.
Provided that no rebate shall be applicable for connections obtained by virtue of change
in ownership in existing connection or by reconnection.
Provided also that new connection on the permanently disconnected premises shall only
be eligible for such rebate, if, the application for new service connection on such
premises is received not before the expiry of six months from the date of its permanent
disconnection.
The consumer availing this rebate shall not be entitled for the rebate of incremental
consumption under clause (d) above.
(f)
Rebate for Captive power plant consumers:
Applicability:
The rebate shall be applicable to consumers-
i.
Who have been meeting their demand either fully or partially during FY 2016-
17 and/or FY 2017-18 and/or FY 2018-19 and/or FY 2019-20 and/or FY 2020-
21 and/or FY 2021-22 and/or FY 2022-23 through their captive power plants
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 233
located in Madhya Pradesh.
ii.
The rebate shall be applicable upto FY 2023-24 from the date of request
submitted by the consumer to the Licensee during and after FY 2017-18. The
consumer shall be required to apply to the Licensee for the rebate indicating
that he would be willing to avail supply from Licensee by switching
consumption from his existing captive power plant.
iii.
The
base year
shall be the financial year preceding the year during which the
consumer has applied for switching consumption from his captive power plant
to the licensee.
e.g., If a consumer applies for switching his consumption from captive power
plant to Licensee in August, 2018, then his base year for calculation of
incremental consumption would be FY 2017-18.
iv.
Who have recorded an incremental consumption i.e., an increase in the units
consumed from the Licensee in any month of the current year (FY 2023-24)
compared to the same month in
base year
.
v.
A rebate of Rs 2 per unit shall be applicable on incremental units of the
consumer subject to reduction in captive generation as per the methodology
given below:-
Base Year
Current Financial Year
Incremental
Consumptio
n from
DISCOM
Reduction in
Captive
Generation
Units eligible for
Rs 1/unit rebate
in energy charges
as per Clause (d)
of specific terms &
conditions
Units
eligible for
Rs 2/ Unit
rebate on
incremental
units
Consumption
from
DISCOM
(Units)
Captive
Generatio
n Units
Consumption
from DISCOM
(Units)
Captive
Generation
(Units)
Units
Units
Units
Units
(A1)
(B1)
(A2)
(B2)
X= A2-A1
Y = B1-B2
Scenario 1
100
90
110
90
10
0
10
0
Scenario 2
100
90
110
80
10
10
0
10
Scenario 3
100
90
110
70
10
20
0
10
Scenario 4
100
90
100
80
0
10
0
0
Scenario 5
100
90
120
80
20
10
10
10
Note: 1) Captive power plant referred above shall be the “Captive Generating Plant” as defined in Rule 3 of the Electricity
Rules, 2005
2) For new consumers added during this tariff period who were fully meeting their demand from their captive power
plants during the previous financial year, their consumption from DISCOM may be treated as zero for the base year.
X = the incremental consumption recorded by the captive consumer in any month of
the current financial year compared to the same month of base year.
And
Y = the quantum of reduction in units consumed from captive plant (self-consumption)
achieved by the captive consumer in any month of the current financial year compared
to the same month in the base year.
For all other cases of incremental consumption i.e when X>Y, the existing rebate of
Rs 1/unit in energy charges will be applicable on X-Y units (as per the rebate for
incremental consumption given in clause (d) in the Specific Terms & Conditions for
HV-3).
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 234
Scenario 1: There is no reduction in Captive Generation but only incremental
consumption from DISCOM, hence a rebate of Rs 1/unit in energy charges is
applicable on incremental consumption from DISCOM (as per the rebate for
incremental consumption given in clause (d) in the Specific Terms & Conditions for
HV-3).
Scenario 2
:
The incremental consumption from DISCOM is due to the reduction of
captive consumption by same quantum of units hence it will attract a rebate of Rs 2
per unit on incremental units.
Scenario 3: There is higher reduction in Captive Generation as compared to
incremental Consumption from DISCOM hence incremental units consumed from the
DISCOM as shown in the table, shall qualify for a Rebate of Rs 2 per unit.
Scenario 4: There shall not be any rebate due to absence of incremental Consumption
from DISCOM irrespective of reduction in Captive Generation.
Scenario 5: This scenario depicts higher incremental consumption from DISCOM (X)
than reduction in Captive Generation (Y) hence units corresponding to (X-Y) shall
qualify for rebate of Rs 1/unit in energy charges (as per the rebate for incremental
consumption given in clause (d) in the Specific Terms & Conditions for HV-3) while
units Y shall qualify for Rebate of Rs 2 per unit.
(g)
Rebate for Open Access Consumers
Applicability: The rebate shall be applicable to consumers
i.
Who have been availing open access during the last financial year (FY 2022-
23).
ii.
Who have recorded an incremental consumption i.e., an increase in the units
consumed from the Licensees in any month of the current year (FY 2023-
24) compared to the same month in last year (FY 2022-23).
iii.
The rebate shall be applicable from the date of request submitted by the
consumer to the Licensee during FY 2023-24.
iv.
The consumer shall be required to apply with the Licensee for the rebate
indicating that he would be willing to avail supply from Licensee by
switching consumption from open access.
v.
A rebate of Rs 1 per unit shall be applicable on incremental units of the
consumer subject to reduction in open access consumption as per the
methodology given below.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 235
FY 2022-23
FY 2023-24
Incremental
Consumption
from
DISCOM
X= A2-A1
Reduction
in OA units
Y = B1-B2
Applicable
units for
rebate as per
clause (d) of
specific
terms &
conditions
Rs 1/unit
rebate on
incremental
units of Open
Access
Consumption
from
DISCOM
(A1)
Wheeled
Units
(B1)
Consumption
from
DISCOM
(A2)
Wheeled
Units
(B2)
Scenario 1
100
90
110
90
10
0
10
0
Scenario 2
100
90
110
80
10
10
0
10
Scenario 3
100
90
110
70
10
20
0
10
Scenario 4
100
90
100
80
0
10
0
0
Scenario 5
100
90
120
80
20
10
10
10
X = the incremental consumption recorded by the open access consumer in any month
of the current financial year as compared to the same month of base year.
And
Y = the quantum of reduction in units consumed from open access by the consumer in
any month of the current financial year as compared to the same month in the base
year.
For all other cases of incremental consumption i.e when X>Y, the existing rebate of
Rs 1/unit in energy charges will be applicable on X-Y units (as per the rebate for
incremental consumption given in clause (d) in the Specific Terms & Conditions for
HV-3).
Scenario 1: There is no reduction in open access consumption but only incremental
consumption from DISCOM, hence a rebate of Rs 1/unit in energy charges is
applicable on incremental consumption from DISCOM (as per the rebate for
incremental consumption given in clause (d) in the Specific Terms & Conditions for
HV-3).
Scenario 2
:
The incremental consumption from DISCOM is due to the reduction of
open access consumption by same quantum of units hence it will attract a rebate of Rs
1 per unit on incremental units.
Scenario 3: There is higher reduction in open access consumption as compared to
incremental Consumption from DISCOM hence incremental units consumed from the
DISCOM as shown in the table, shall qualify for a Rebate of Rs 1 per unit.
Scenario 4: There shall not be any rebate due to absence of incremental Consumption
from DISCOM irrespective of reduction in open access consumption.
Scenario 5: This scenario depicts incremental consumption from DISCOM (X) and
reduction in open access consumption (Y) hence units corresponding to (X-Y) shall
qualify for rebate of Rs 1/unit in energy charges (as per the rebate for incremental
consumption given in clause (d) in the Specific Terms & Conditions for HV-3) while
units Y shall qualify for Rebate of Rs 1 per unit.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 236
(h) Conversion of Existing LT Industrial/Non domestic connection to corresponding
HT connection
A rebate of Rs. 1 per unit in the energy charges on the HT tariff shall be provided to
those existing LT consumers who convert to HV 3 category during FY 2023-24. The
rebate is applicable for FY 2023-24 for the units billed only after the commencement of
HT Agreement during FY 2023-24.
(i) Additional specific terms and conditions for shopping mall
Individual end user shall not be levied a rate which is exceeding non-domestic-
commercial tariff (LV 2.2) in case of LT connection and HT non-industrial tariff (HV
3.2) in case of HT connection, as determined by the Commission.
---------------------------------------------------------------------------------------------------
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 237
Tariff Schedule - HV - 4
SEASONAL:-
Applicability:
This tariff shall be applicable to such seasonal industries / consumers requiring energy for the
production purposes for season defined under this schedule.
The licensee shall allow this tariff to any industry having seasonal use only.
Tariff:
Category of
consumers
Monthly Fixed
Charge (Rs./kVA of
billing demand per
month)
Energy Charge for
consumption up to
50% load factor
(paise / unit)
Energy Charge for
consumption in
excess of 50% load
factor
(paise / unit)
During Season
11 kV supply
405
708
602
33 kV supply
448
688
583
During Off-Season
11 kV supply
Rs. 405 on 10% of
contract demand or
actual recorded
demand during the
season, whichever is
higher
850 i.e. 120% of
seasonal Energy
Charge
Not applicable
33 kV supply
Rs. 448 on 10% of
contract demand or
actual recorded
demand during the
season, whichever is
higher
826 i.e. 120% of
seasonal Energy
Charge
Not applicable
Specific Terms and Conditions:
a) Season shall mean continuous period upto 6 months with a ceiling of 185 days and
minimum period of 3 months.
b) Period other than the declared season shall be considered as the off season period.
c) The consumer has to declare months of season and off season for a year within 60 days
of issue of this tariff order and inform the same to the Distribution Licensee. The Year
in this case shall be a period of 12 months commencing from start of season / off season,
as applicable. If the consumer has already declared the period of season and off-season
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 238
prior to issuance of this order, same shall be taken into cognizance for the purpose and
accepted by the Distribution Licensee.
d) The seasonal period once declared by the consumer during Year cannot be changed.
e) If the declared season or off-season spreads over two tariff periods, then the tariff for
the respective period shall be applicable.
f) This tariff is not applicable to composite units having seasonal and other category of
loads.
g) Annual Minimum Charges shall be based on minimum consumption of 900 units
(kWh) per kVA of contract demand to be equally distributed in seasonal months. The
method of billing of minimum charges shall be as given in General Terms and
Conditions of High Tension Tariff.
h) Time of Day (ToD) Rebate: This rebate shall be as specified in General Terms and
Conditions of High Tension Tariff.
i) The consumer will be required to restrict his monthly off season consumption to 15%
of highest of the average monthly consumption of the preceding three seasons. In case
this limit is exceeded in any off season month, the consumer will be billed under HV-
3.1 Industrial Schedule for the whole year (as opted).
j) The consumer will be required to restrict his maximum demand during off season up to
30 % of the contract demand. In case the maximum demand recorded in any month of
the declared off season exceeds 36% of CD (120% of 30% of CD), the consumer will
be billed under HV 3.1 Industrial tariff for the whole year (as opted) as per the tariff in
force.
k) Other terms and conditions shall be as per the General Terms and Conditions of High
Tension Tariff.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 239
Tariff Schedule - HV - 5
IRRIGATION, PUBLIC WATER WORKS AND OTHER THAN AGRICULTURAL
Applicability:
This Tariff Category shall apply to supply of power to lift irrigation schemes, group irrigation, Public
Utility Water Supply schemes, sewage treatment plants /sewage pumping plants and for energy used
in lighting pump house.
This Tariff category shall also applicable to River link projects implemented by government or its
agency provided that the supply of power is utilized for purposes covered under this category only.
Note: Private water supply scheme, water supply schemes run by institutions for their own
use/employees/townships etc. will not fall in this category but billed under the appropriate tariff
category to which such institution belongs. In case water supply is being used for two or more
different purposes then the highest tariff shall be applicable.
This tariff category shall also apply to supply of power to other than agriculture pump connections i.e.
the connection for hatcheries, fisheries ponds, poultry farms, cattle breeding farms, grasslands,
vegetables/ fruits/ floriculture/ mushroom growing units etc. and dairy (for those dairy units where
only extraction/collection of milk and its processing such as chilling, pasteurization etc. is done).
However, in units where milk is processed to produce other end products of milk, billing shall be done
under HV-3.1 (Industrial) category.
Tariff:
Sub-Category
Monthly Fixed Charge
(Rs. / kVA of billing
demand per month)
Energy Charge
(paise per unit)
11 kV supply
384
610
33 kV supply
596
132 kV & above supply
556
Specific Terms and Conditions:
(a) Annual Minimum Charge shall be based on Consumption of 720 units (kWh) per
kVA of contract demand. The method of billing of minimum charges shall be as given
in General Terms and Conditions of High Tension Tariff.
(b) Time of Day (ToD) Rebate: This rebate shall be as specified in General Terms and
Conditions of High Tension Tariff.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 240
(c) Incentive for adopting Demand Side Management
An incentive equal to 5 % energy charges shall be given on installation and use of
energy saving devices (such as ISI energy efficient motors for pump sets). Incentive
will only be admissible if full bill is paid within due dates failing which all consumed
units will be charged at normal rates as the case may be. Such incentive will be
admissible from the month following the month in which energy saving devices are put
to use and its verification by a person authorized by the licensee. The incentive will
continue to be allowed till such time these energy saving devices remain in service. The
Distribution Licensee is required to arrange wide publicity for above incentive. The
Distribution Licensee is required to place quarterly information regarding incentives
provided on its web site.
(d) Other terms and conditions shall be as per the General Terms and Conditions of High
Tension Tariff.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 241
Tariff Schedule - HV - 6
BULK RESIDENTIAL USERS
Applicability:
The tariff category HV-6.1 is applicable for supply to industrial or any other township (e.g. that of
University or academic institutions, hospitals, MES and Border villages, etc.) for domestic purpose
only such as lighting, fans, heating etc. provided that the connected load for essential common facilities
such as Non-domestic supply in residential area, street lighting shall be within the limits specified
hereunder: -
(i) Water supply and Sewage pumping, Hospital - No limit
(ii) Non-domestic and other General purpose put together - 20% of total connected load,
The tariff category HV-6.2 is applicable for supply to Registered Cooperative Group Housing Societies
as per the Ministry of Power’s notification no. S.O.798 (E) dated 9
th
June, 2005 and also to other
Registered Group Housing Societies and individual domestic user, old age homes, day care centres for
senior citizens, rescue houses and orphanages run by Govt./charitable trust. The Terms and Conditions
to this category of consumers shall be applicable as per relevant provisions of the Madhya Pradesh
Electricity Supply Code, 2021 as amended from time to time.
Tariff:
S. No.
Category of
consumers
Monthly Fixed
Charge (Rs. / kVA of
billing demand per
month)
Energy Charge for
consumption up to
50% load factor
(paise / unit)
Energy Charge for
consumption in excess of
50% load factor
(paise / unit)
1
For Tariff Sub-Category 6.1
11 kV supply
362
637
572
33 kV supply
622
552
132 kV supply
600
530
2
For Tariff Sub-Category 6.2
11 kV supply
230
637
572
33 kV supply
622
552
132 kV supply
555
515
Specific Terms and Conditions:
(a) Annual Minimum Charges shall be based on Consumption of 780 units (kWh) per
kVA of contract demand. The method of billing of minimum consumption shall be as
given in General Terms and Conditions of High Tension Tariff.
(b) The individual end user shall not be levied a rate exceeding the tariff applicable to the
corresponding LT category.
(c) Other terms and conditions shall be as specified under General Terms and Conditions
of High Tension Tariff.
………………………………………………………………………………
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 242
Tariff Schedule - HV - 7
SYNCHRONIZATION OF POWER FOR GENERATORS CONNECTED TO THE GRID
Applicability:
This Tariff shall apply to those generators who are already connected to the grid and seek to avail
power for synchronization with the grid. This Tariff category shall also be applicable to the
Generator/Co-generation plant from Renewable Sources entitled to draw power exclusively for its own
use from the State Distribution Licensee for synchronization of plant with the grid or during shutdown
period of its plant or during other emergencies (but not for construction) or for auxiliaries or forced
outage.
Tariff for all voltages:
Category
Energy Charge (Paise/unit)
For all Voltage levels of HV category
1009
Terms and Conditions:
(a) The supply for above purpose with the grid shall not exceed 15% of the capacity of the
Power Plant. In case of drawl of power above 15% of the capacity of the power plant
on any occasion, the excess energy drawn during the billing month shall be billed at the
rate of 2 times of the normal energy charges.
(b) The condition for minimum consumption shall not be applicable to the generators
including CPP. Billing shall be done for energy recorded on each occasion of availing
supply during the billing month.
(c) The supply shall not be allowed to the CPP for production purpose for which they may
avail stand-by support under the relevant Regulations.
(d) The synchronization with the grid shall only be made available after commissioning of
the plant.
(e) The generator including CPP shall execute an agreement with the Licensee for meeting
the requirement of synchronization/power with the grid incorporating the above terms
and conditions.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 243
Tariff Schedule - HV - 8
E- VEHICLE / E- RICKSHAWS CHARGING STATIONS
Applicability:
The tariff is applicable exclusively for Electric Vehicle / Electric Rickshaws charging and Battery
Swapping stations. However, tariff for other consumers who use electricity for charging their own
Vehicles/Rickshaws shall be the same as applicable for the relevant category of connection from which
the Vehicles/Rickshaws is being charged at such premises.
Applicable Tariff:
Category
Energy Charge
(Paise/unit)
HT Supply
696
Terms and Conditions:
a) Other terms and conditions shall be as specified under General Terms and Conditions
for High Tension Tariff.
………………………………………………………………………………
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 244
Tariff Schedule - HV - 9
Metro Rail:
Applicability:
This Tariff shall apply to Metro Rail for Traction and Non-Traction loads.
Tariff:
S. No.
Category
Monthly Fixed Charge
(Rs. per kVA of billing
demand per month)
Energy Charge
(paise / unit)
1
Sub-Urban Rail Transport (Metro
Rail) at 132kV/220kV
310
570
Specific Terms and Conditions:
(a) Additional Charge for Excess demand: Shall be billed as given in General
Terms and Conditions for High Tension tariff.
(b) Annual Minimum charges shall be based on minimum consumption of 1000
units (kWh) per kVA of Contract Demand, this being the first year of operation
of Metro Rail project in the State. The method of billing of minimum charges
shall be as given in General Terms and Conditions of High Tension Tariff.
(c) Other terms and conditions shall be as mentioned in the General Terms and
Conditions of High Tension Tariff.
ARR for FY 2023-24 and Retail Supply Tariff Order for FY 2023-24
Madhya Pradesh Electricity Regulatory Commission Page 245
GENERAL TERMS AND CONDITIONS OF HIGH-TENSION TARIFF
The following terms and conditions shall be applicable to all HT consumer categories
subject to Specific Terms and Conditions for that category as mentioned in the Tariff
Schedule of respective category:
1.1 The contract demand shall be expressed in whole number only.
1.2 Tariff for Green Energy shall be inclusive of normal tariff as applicable to that category
of consumer and Green Energy Charges as mentioned in Clause 1.26 of General Terms
and Conditions of HT Tariff.
1.3 Character of Service: The character of service shall be as per the Madhya Pradesh
Electricity Supply Code, 2021 as amended from time to time.
1.4 Point of Supply:
(a) The power will be supplied to the consumer ordinarily at a single point for
the entire premises.
(b) In case of Railway Traction, the supply at each sub-station shall be
separately metered and charged.
(c) In case of coal mines, the power will be supplied ordinarily at a single point
for the entire premises. The power may, however, be supplied, on the
request of the consumer, at more than one point subject to technical
feasibility. In such cases, metering and billing will be done for each point of
supply separately.
1.5 Determination of Demand: The maximum demand of the supply in each month shall
be four times the largest number of kilovolt ampere hours delivered at the point of
supply during any continuous 15 minutes during the month as per sliding window
principle of measurement of demand.
1.6 Billing demand: The billing demand for the month shall be the actual maximum kVA
demand of the consumer during the month or 90% of the contract demand, whichever
is higher. In case power is availed through open access, the billing demand for the
month shall be the actual maximum kVA demand during the month excluding the
demand availed through open access for the period for which open access is availed or
90% of the contract demand, whichever is higher, subject to clause 3.4 of the M.P.
Electricity Supply Code, 2021.
The provisions regarding additional charges for excess demand shall be applicable as
per clause 1.16 of these conditions.
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Note: The billing demand shall be rounded off to the nearest integer number i.e. the
fraction of 0.5 or above will be rounded off to next integer figure and the fraction of
less than 0.5 shall be ignored.
1.7 Minimum charges shall be billed as follows:
1) The consumer shall be billed for annual minimum charges based on
consumption (kWh) number of units per kVA of contract demand specified for
their category, irrespective of whether any energy is consumed or not during the
year.
2) The consumer shall be billed one twelfth of annual minimum consumption
(kWh) specified for their category each month in case the actual consumption
is less than above mentioned minimum consumption. However, for Seasonal
consumers the annual minimum consumption shall be equally distributed during
seasonal months and during off season only actual consumption shall be
considered for billing subject to adjustment of actual cumulative consumption
against cumulative minimum consumption.
3) During the month in which actual cumulative consumption equals or greater
than the annual minimum consumption, no further billing of monthly minimum
consumption shall be done in subsequent months of the financial year.
4) Tariff minimum consumption shall be adjusted in the month in which
cumulative actual or billed monthly consumption exceeds cumulative monthly
prorated minimum annual consumption. If actual cumulative consumption does
not get fully adjusted in that month, adjustment shall continue to be provided in
subsequent months of the financial year. The following example illustrates the
procedure for monthly billing of consumption where prorated monthly
minimum consumption is 100 kWh based on annual consumption of 1200 kWh.
Month
Actual
cumulative
consumption
(kWh)
Cumulative
minimum
consumption
(kWh)
Higher of
2 and 3
(kWh)
Already
billed in the
year (kWh)
To be billed in the
month = (4-5)
(kWh)
1
2
3
4
5
6
April
95
100
100
0
100
May
215
200
215
100
115
June
315
300
315
215
100
July
395
400
400
315
85
Aug
530
500
530
400
130
Sept
650
600
650
530
120
Oct
725
700
725
650
75
Nov
805
800
805
725
80
Dec
945
900
945
805
140
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Month
Actual
cumulative
consumption
(kWh)
Cumulative
minimum
consumption
(kWh)
Higher of
2 and 3
(kWh)
Already
billed in the
year (kWh)
To be billed in the
month = (4-5)
(kWh)
Jan
1045
1000
1045
945
100
Feb
1135
1100
1135
1045
90
March
1195
1200
1200
1135
65
1.8 Rounding off: All bills will be rounded off to the nearest rupee i.e. up to 49 paisa shall
be ignored and 50 paisa upwards shall be rounded off to next Rupee.
Incentive/ Rebate / penalties
1.9 Power Factor Incentive:
Power factor incentive shall be payable as follows:
Average Monthly Power Factor
Percentage incentive payable on billed
energy charges on the basis of energy
actually consumed
96%
1.0 (one percent)
97%
2.0 (two percent)
98%
3.0 (three percent)
99%
5.0 (five percent)
100 %
7.0 (seven percent)
For this purpose, the “average monthly power factor” shall have the same
meaning as in Madhya Pradesh Electricity Supply Code, 2021, as amended from
time to time.
1.10 Load factor calculation
1) The Load Factor shall be calculated as per the following formula:
Monthly consumption X 100
Load Factor (%) = ----------------------------------------------------------------------------
No. of hours in the billing month X Demand (KVA) X PF
i. Monthly consumption shall be units (kWh) consumed in the month excluding
those received from sources other than Licensee.
ii. No. of Hours in billing month shall exclude period of scheduled outages in
hours.
iii. Demand shall be maximum demand recorded or contract demand whichever is
higher.
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iv. Power factor shall be 0.9 or actual monthly power factor whichever is higher
Note: The load factor (%) shall be rounded off to the nearest lower integer. In case the
consumer is getting power through open access, units set off from other sources, the net
energy (after deducting units set off from other sources, from the consumed units) billed
to consumer shall only be taken for the purpose of working out load factor. The billing
month shall be the period in number of days between the two consecutive dates of meter
readings taken for the purpose of billing to the consumer.
1.11 Incentive for advance payment: For advance payment made before commencement
of consumption period for which bill is prepared, an incentive at one twelfth of annual
interest rate in percentage applicable on working capital shall be given on the amount
(excluding security deposit), which remains with the Distribution Licensee at the end
of billing month. However, such amount shall be credited to the account of the
consumer after adjusting any amount payable to the Distribution Licensee
1.12 Rebate for online bill payment: Rebate of 0.5% on the total bill amount maximum up
to Rs 1000 will be applicable for making online payment of bill.
1.13 Prompt payment incentive: An incentive for prompt payment @0.25% of bill amount
(excluding, security deposit, meter rent and Government levies viz. Electricity Duty
and Cess) shall be given in case the payment is made at least 7 days in advance of the
due date of payment where the current month billing amount is equal to or greater than
Rs. One Lakh. The consumers in arrears shall not be entitled for this incentive.
1.14 Time of Day (ToD) Rebate: This scheme is applicable to categories of consumers for
which applicability of ToD Rebate is expressly mentioned in the tariff order. This is
applicable for different periods of the day i.e., peak and off-peak period. The rebate on
energy charges according to the period of consumption shall be as per following table:
Sr. No
Peak / Off-peak Period
Rebate on energy charges on energy consumed
during the corresponding period
Months
April to October
1.
Peak hours (6 AM to 9
AM and 5 PM to 10 PM )
No rebate
2.
Off peak hours ( 9 AM to
5 PM and 10 PM to 6AM
next day)
No rebate
( 9 AM to 5 PM )
Rebate of 10 % of Normal rate of Energy Charge
(10 PM to 6AM next day)
Months
November to March
1.
Peak hours (6 AM to 9
AM and 5 PM to 10 PM )
No rebate
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Sr. No
Peak / Off-peak Period
Rebate on energy charges on energy consumed
during the corresponding period
2.
Off peak hours (9 AM to
5 PM and 10 PM to 6AM
next day)
No Rebate
( 9 AM to 5 PM )
Rebate of 20 % of Normal rate of Energy Charge
(10 PM to 6AM next day)
Note:
1. ToD rebate shall not be applicable on Fixed charges.
2. The above mentioned off-peak period and peak period shall also be applicable
for the purpose of banking as per the provision of Madhya Pradesh Electricity
Regulatory Commission (Methodology for determination of Open Access
charges and Banking charges for Green Energy Open Access consumers)
Regulations, 2023 and amendments thereof.
1.15 Power Factor Penalty (For consumers other than Railway Traction HV-1)
(i) If the average monthly power factor of the consumer falls to 89% or below, the
consumer shall be levied a penalty @ 1% (one percent), for each one percent
fall in his average monthly power factor below 90 percent, on total amount of
bill under the head of “Energy Charges”:
(ii) If the average monthly power factor of the consumer falls to 84% or below, the
consumer shall be levied a penalty of 5% (five percent) plus @ 2% (two percent)
for each one percent fall in his average monthly power factor below 85 percent
on the total amount of bill under the head of “Energy Charges”. This penalty
shall be subject to the condition that overall penalty on account of low power
factor does not exceed 35%.
(iii) Should the average monthly power factor fall to below 69% or below, the
Distribution Licensee reserves the right to disconnect the consumer’s
installation till steps are taken to improve the same to the satisfaction of the
Distribution Licensee. This is, however, without prejudice to the levy of penalty
charges for low power factor in the event of supply not being disconnected.
(iv) For this purpose, the “average monthly power factor” shall have the same
meaning as in Madhya Pradesh Electricity Supply Code, 2021, as amended from
time to time.
Power Factor penalty shall be billed on the basis of energy actually consumed
during the month.
(v) Notwithstanding what has been stated above, if the average monthly power
factor of a new consumer is found to be 89% or less in any month during the
first 6 (six) months from the date of connection, the consumer shall be entitled
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to a maximum period of six months to improve it to not less than 90% subject
to following conditions:
a) This period of six months shall be reckoned from the month following the month
in which the average power factor was found for the first time to be 89% or less.
b) In all cases, the consumer will be billed the penal charges for low power factor,
but in case the consumer maintains the average monthly power factor in
subsequent three months (thus in all four months) to not less than 90%, the
charges on account of low power factor billed during the said six months period,
shall be withdrawn and credited in next monthly bills.
c) The facility, as mentioned herein, shall be available not more than once to new
consumer whose average monthly power factor is 89% or less in any month
during 6 months from the date of connection. Thereafter, the charges on account
of low average power factor, if found 89% or less, shall be payable as applicable
to any other consumer.
1.16 Additional Charges for Excess Demand
i. The consumer shall at all times restrict their actual maximum demand within
the contract demand. In case the actual maximum demand in any month
exceeds 120% of the contract demand, the tariffs given in various schedules
shall apply to the extent of the 120% of the contract demand only. The
consumer shall be charged for excess demand computed as difference of
recorded maximum demand and 120% of contract demand on fixed charges
and while doing so, the other terms and conditions of tariff, if any, shall also
be applicable on the said excess demand. The excess demand so computed,
if any, in any month shall be charged at the following rates from all
consumers except Railway Traction.
ii. Energy charges for excess demand: No extra charges are applicable on the
energy charges due to the excess demand or excess connected load.
iii. Fixed charges for Excess Demand: - These charges shall be billed as per
following:
1. Fixed charges for Excess Demand when the recorded maximum
demand is up to 130% of the contract demand: Fixed charges for
Excess Demand over and above the 120 % of contract demand shall be
charged at 1.3 times the normal fixed charges.
2. Fixed charges for Excess Demand when the recorded maximum
demand exceeds 130% of contract demand: In addition to fixed
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charges in 1 above, recorded demand over and above 130 % of the
contract demand shall be charged at 2 times the normal fixed charges.
Example for fixed charges billing for excess demand: If the contract demand
of a consumer is 100 kVA and the maximum demand recorded in the billing
month is 140 kVA, the consumer shall be billed towards fixed charges as
under:-
a) Up to 120 kVA at normal tariff.
b) Above 120 kVA up to 130 kVA i.e. for 10 kVA at 1.3 times the
normal tariff.
c) Above 130 kVA up to 140 kVA i.e. for 10 kVA at 2 times the
normal tariff.
iv. The excess demand computed in any month will be charged along with the
monthly bill and shall be payable by the consumer.
v. The billing of excess demand at higher tariff is without prejudice to the
Licensee’s right to discontinue the supply in accordance with the provisions
contained in the Madhya Pradesh Electricity Supply Code, 2021 as amended
from time to time.
1.17 Delayed Payment Surcharge: Surcharge at the rate of 1.25 % per month or part thereof
on the amount outstanding (including arrears) will be payable if the bills are not paid
up to due date. The part of a month will be reckoned as full month for the purpose of
calculation of delayed payment surcharge. The delayed payment surcharge will not be
applicable after supply to the consumer is permanently disconnected. However, for the
temporary connection, if any, amount is outstanding after disconnection, Delayed
Payment Surcharge at the rate of 1.25% per month or part thereof shall be applicable
as per Madhya Pradesh Electricity Supply Code, 2021 as amended from time to time.
1.18 All the rebates/incentives shall be calculated on amount excluding Government
Subsidy.
1.19 Service Charge for Dishonoured Cheques: In case the cheque(s) presented by the
consumer are dishonoured, a service charge at the rate of Rs. 1000/- plus applicable
GST per cheque shall be levied in addition to delayed payment surcharge as per rules.
This is without prejudice to the Distribution Licensee’s rights to take action in
accordance with any other applicable law.
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1.20 Temporary supply at HT: The character of temporary supply shall be as defined in
the M.P. Electricity Supply Code, 2021 as amended from time to time. If any consumer
requires temporary supply then it shall be treated as separate service and charged
subject to the following conditions.
(a) Fixed Charges and Energy Charges shall be charged at 1.25 times the normal
tariff. The fixed charges shall be recovered for the number of days for which
the connection is availed during the month by prorating the monthly fixed
charges. Month shall be considered as the number of total days in that calendar
month.
(b) The consumer shall ensure minimum consumption (kWh) as applicable to the
permanent consumers on pro-rata based on number of days as detailed below:
Annual minimum consumption as applicable to
permanent supply X No. of days of temporary
Minimum consumption connection
for additional supply = ----------------------------------------------------------
for temporary period No. of days in the year
(c) The billing demand shall be the demand requisitioned by the consumer or the
highest monthly maximum demand during the period of supply commencing
from the month of connection ending with the billing month, whichever is
higher. For example:
Month
Recorded Maximum
Demand (kVA)
Billing Demand
(kVA)
April
100
100
May
90
100
June
80
100
July
110
110
August
100
110
September
80
110
October
90
110
November
92
110
December
95
110
January
120
120
February
90
120
March
80
120
(d) The consumer shall pay the estimated charges in advance, before serving the
Temporary Connection subject to replenishment from time to time and
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adjustment as per final bill after disconnection. No interest shall be given on
such advance payment.
(e) Connection and Disconnection Charges shall also be paid.
(f) In case existing HT consumer requires temporary supply for the purpose of
addition and/or alteration within the premises of existing HT connection, then
the consumer is allowed to avail the same through its existing permanent
connection to the extent of its Contract Demand and such consumer shall be
billed at applicable tariff for permanent connection. Excess demand, if any, shall
be treated as per the provisions in clause 1.16 above.
(g) Power factor incentives/penalties and the condition for Time of Day rebate shall
be applicable at the same rate as for permanent connection.
Other Terms and Conditions:
1.21 The existing 11 kV consumer with contract demand exceeding 300 kVA who want to
continue to avail supply at 11 kV at his request, shall be required to pay additional
charge at 3 %. This additional charge of 3% shall be applicable for enhanced maximum
demand recorded for fixed charges and incremental units proportionate to enhanced
maximum demand recorded for energy charges.
1.22 The existing 33 kV consumer with contract demand exceeding 10,000 kVA who want
to continue to avail supply at 33 kV at his request, shall be required to pay additional
charge at 2%. This additional charge of 2% shall be applicable for enhanced maximum
demand recorded for fixed charges and incremental units proportionate to enhanced
maximum demand recorded for energy charges.
1.23 The existing 132 kV consumer with contract demand exceeding 50,000 kVA who want
to continue to avail supply at 132 kV at his request, shall be required to pay additional
charge at 1%. This additional charge of 1% shall be applicable for enhanced maximum
demand recorded for fixed charges and incremental units proportionate to enhanced
maximum demand recorded for energy charges.
1.24 No Metering Charges shall be levied.
1.25 Consumers availing Green Energy from Distribution Licensee only for the purpose of
reducing their carbon footprint and seeking Certification to this effect shall be required
to pay Green Energy Charges at the rate of Rs. 0.97/kWh and such charges shall be
applicable over and above the normal tariff for that category of consumers. This facility
shall be available to consumers opting for meeting at least 25% of their monthly
consumption of electricity and subsequently in steps of 5% of monthly consumption
over and above 25 % from Green Energy during any billing month. Further, such
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consumers may avail Green Energy for any number of days in a billing month subject
to meeting consumption criteria as mentioned above.
1.26 The Consumers availing green energy from Distribution Licensee in accordance with
provisions of MPERC (Co-generation and generation of electricity from Renewable
sources of energy) Regulations, 2021 and amendments thereof, shall be required to pay
Green Energy Charges at Rs. 0.25/ kWh for Wind, Rs. 3.10/ kWh for HPO and Rs.
0.96/ kWh for Other, which shall be over and above the normal tariff of respective
consumer category as per this Tariff Order.
1.27 Standby Charges:- Standby Charges for the purpose of Madhya Pradesh Electricity
Regulatory Commission (Methodology for determination of Open Access charges and
Banking charges for Green Energy Open Access consumers) Regulations, 2023 as
amended from time to time, shall be 0.25 times of the tariff applicable to the consumer
availing Green Energy Open Access, which shall be over and above the normal tariff
of the respective consumer category.
1.28 The accounting and settlement for consumers availing net metering facility shall be as
per Madhya Pradesh Electricity Regulatory Commission (Grid Interactive Renewable
Energy System and Related Matters) Regulations, 2022 as amended from time to time.
1.29 The tariff does not include any tax or duty, etc. on electrical energy that may be payable
at any time in accordance with any law then in force. Such charges, if any, shall be
payable by the consumer in addition to the tariff charges.
1.30 No changes in the tariff or the tariff structure including minimum charges for any
category of consumer are permitted except with prior written permission of the
Commission. Any order without such written permission of the Commission will be
treated as null and void and also shall be liable for action under relevant provisions of
the Electricity Act, 2003.
1.31 In case a consumer, at his request, avails supply at a voltage higher than the standard
supply voltage as specified under relevant category, he shall be billed at the rates
applicable for actually availed supply voltage and no extra charges shall be levied on
account of higher voltage.
1.32 All consumers to whom fixed charges are applicable are required to pay fixed charges
in each month irrespective of whether any energy is consumed or not.
1.33 If any difficulty arises in giving effect to any of the provisions of this order, the
Commission may, by general or special order, direct the Licensees to do or undertake
things, which in the opinion of the Commission is necessary or expedient for the
purpose of removing the difficulties.
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1.34 All conditions prescribed herein shall be applicable notwithstanding if any contrary
provisions, exist in the agreement entered into by the consumer with the licensee.
1.35 Wherever, there is contradiction in general terms & conditions and specific terms &
conditions given for any particular category, the specific terms and conditions shall
prevail for that category.
1.36 In case any dispute arises regarding interpretation of this tariff order and/or applicability
of this tariff, the decision of the Commission shall be final and binding.
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