Tariff Regulations
Odisha
The Odisha Electricity Regulatory Commission has issued the Terms and Conditions for determination of Transmission Tariff regulations dated 21st October 2014. The regulation is effective from April 1, 2014 to March 31, 2019. The primary purpose of the regulations is to determine the Aggregate Revenue Requirement (ARR) for the Transmission licensees.
OERC Transmission Tariff Regulations 2014
Resolution By
OERC
Notification No. and date
No. 1432/OERC/RA/AMEND/REGU-8/2013- Vol. III
dated 21st October 2014
dated 21st October 2014
Objectives
To determine the Aggregate Revenue Requirement (ARR) for the Transmission Business
Regulations called as
Odisha Electricity Regulatory Commission (Terms and Conditions for determination of Transmission Tariff) Regulations, 2014
Effective Control period
'1st April 2014 to 31st March 2019
[Clause No. 2.1.k]
[Clause No. 2.1.k]
Cut-off Date
'31st March of the year closing after two years of the year of commercial operation of the project
[clause 2.1.l]
[clause 2.1.l]
Commercial Operation Date (COD)/ Date of commercial operation
The date declared by the Transmission Licensee from 00:00 hour of which an element of the transmission system is in regular service after successful trial operation for transmitting electricity and communication signal from sending end to receiving end;
[Clause 2.1 (m)]
[Clause 2.1 (m)]
Useful Life
AC and DC sub-station- 25 years
Gas Insulated Substation (GIS) – 25 years
Transmission line (including HVAC) - 35 years
Communication system- 15 years
[clause 2.1.ll]
Gas Insulated Substation (GIS) – 25 years
Transmission line (including HVAC) - 35 years
Communication system- 15 years
[clause 2.1.ll]
Controllable Factors
a. Employee Cost
b. Repair and Maintenance
c. Administrative & General Expenses
d. interest and Finance Charges
e. Depreciation
f. Return on Equity
g. Non-tariff income
[clause 6.3]
b. Repair and Maintenance
c. Administrative & General Expenses
d. interest and Finance Charges
e. Depreciation
f. Return on Equity
g. Non-tariff income
[clause 6.3]
Un-controllable Factors
a. Taxes on Income
b. Inflation
c. Exchange rate variation
d. Force Majeure Conditions
[clause 6.3]
b. Inflation
c. Exchange rate variation
d. Force Majeure Conditions
[clause 6.3]
Sharing Norms
a. One-third amount to be declared by the licensee as dividends to the shareholders is not paid out as dividends, it shall be eligible to be treated as part of equity to that extent and earn returns on the same.
b. One-third amount to be returned back to the consumers by way of reduction in the beneficiary's bills as rebate
c. One-third amount shall be kept as tariff balancing reserve, which shall be used to reduce sharp rise in ARR in future years
[clause 8.45]
b. One-third amount to be returned back to the consumers by way of reduction in the beneficiary's bills as rebate
c. One-third amount shall be kept as tariff balancing reserve, which shall be used to reduce sharp rise in ARR in future years
[clause 8.45]
Norms of operation
Recovery of full annual transmission charge by the transmission licensee shall be based on the achievement of the Normative Annual Transmission System Availability Factor (NATAF) as specified below:
AC system : 98.50%
recovery of full annual transmission charges below the target availability shall be on a pro rate basis
[clause 6.4]
AC system : 98.50%
recovery of full annual transmission charges below the target availability shall be on a pro rate basis
[clause 6.4]
Operation & Maintenance expenses
Wages and salaries during the control period shall be determined based on the base year values of Basic pay and grade pay escalated for annual salary increments and inflation based on Govt of Odisha notification
[clause 8.6]
The A&G expenses for each subsequent year will be determined by escalating the A&G expense for the base year, at the escalation factor equal to WPI to arrive at permissibe A&G expense for each year of the control period
[clause 8.12]
R&M expenses would be allowed at the rate of 2.5% of GFA only on assets owned by the transmission company for each period of the Control period.
[clause 8.15]
[clause 8.6]
The A&G expenses for each subsequent year will be determined by escalating the A&G expense for the base year, at the escalation factor equal to WPI to arrive at permissibe A&G expense for each year of the control period
[clause 8.12]
R&M expenses would be allowed at the rate of 2.5% of GFA only on assets owned by the transmission company for each period of the Control period.
[clause 8.15]
Payment of Transmission Charges
The Transmission Tariff payable by the Beneficiaries of the Transmission System shall be designed to recover the Aggregate Revenue Requirement approved by the Commission for each year of the Control Period. The transmission Tariff shall be computed as follows:
A.R.R/Total Energy handled in the Transmission System of the Licensee
In addition to transmission tariff, tharges for reactive energy as may be specified by the Commission shall also be payable by all the Beneficiaries of the system.
[clause 6.5]
A.R.R/Total Energy handled in the Transmission System of the Licensee
In addition to transmission tariff, tharges for reactive energy as may be specified by the Commission shall also be payable by all the Beneficiaries of the system.
[clause 6.5]
Incentive
If the transmission system availability factor for the year is greater than the Normative annual transmission availability factor the incentive shall be calculated on an annual basis using the following formula:
A.R.R. X ((TA F.Y.INA.T.A F.) -1)
Wheres,
A.R.R. - Aggregate Revenue Requirement specified for the year, in Rupees
N.A.T.A.F- Normative annual transmission system availability for, in per cent
T.A.F.Y- Transmission system availability factor for the year in percent
[clause 6.5]
A.R.R. X ((TA F.Y.INA.T.A F.) -1)
Wheres,
A.R.R. - Aggregate Revenue Requirement specified for the year, in Rupees
N.A.T.A.F- Normative annual transmission system availability for, in per cent
T.A.F.Y- Transmission system availability factor for the year in percent
[clause 6.5]
Corrigendum/ Amendment, if any
No