Tariff Regulations

Gujarat

The Gujarat Electricity Regulatory Commission has issued the Multi Year Tariff regulations dated 29th March 2016. The regulation is effective from April 1, 2016 to March 31, 2021. The primary purpose of these regulations is to determine the tariff in all cases covered under these Regulations.

GERC MYT Regulations 2016

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Resolution By
GERC
Notification No. and date
No. 4 of 2016 dated 29-03-2016
Objectives
Determination of tariff in all cases covered under these Regulations
Regulations called as
Gujarat Electricity Regulatory Commission (Multi-Year Tariff) Regulations, 2016.
Effective Control period
April 1, 2016 to March 31, 2021
Cut-off Date
31st March of the year closing after two years of the year of commercial operation of the project
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 2.20]
Useful Life
AC and DC sub-station- 35 years
Gas Insulated Substation (GIS)/Hybrid sub-station – 35 years
Transmission line (including HVAC & HVDC) - 35 years
[clause 2.62]
Controllable Factors
a. Variations in capitalisation
b. Variation in Interest and Finance Charges, Return on Equity, and Depreciation
c. Variations in performance parameters
d. Variations in interest on working capital
e. Variations in labour productivity
f. Variation in Operation &Maintenance expenses
g. Bad debts written off
[clause 22.2]
Un-controllable Factors
a. Force Majeure events
b. Change in law
c. Transmission Loss
d. Variation in market interest rates
e. Taxes and Statutory levies
f. Taxes on Income
g. Income from realisation of bad debts written off
[clause 22.1]
Sharing Norms
1. One-third of the amount of such gain shall be passed on as a rebate in tariffs over such period as may be stipulated in the Order of the Commission
2. The balance amount, which will amount to two-thirds of such gain, may be utilised at the discretion of the Transmission Licensee
3. One-third of the amount of such loss may be passed on as an additional charge in tariffs over such period as may be stipulated in the Order of the Commission
4. The balance amount of loss, which will amount to two-thirds of such loss, shall be absorbed by the Transmission Licensee
[clause 24]
Norms of operation
1. Target availability for the transmission system shall be as under:
(i) For full recovery of annual transmission charges:
(a) AC system : 98 per cent;
(b) HVDC bi-pole links and HVDC back-to-back stations : 95 per cent;
(ii) For Incentive consideration:
(c) AC system : 98.5 per cent;
(d) HVDC bi-pole links and HVDC back-to-back stations : 96 per cent
Recovery of annual transmission charges below the level of target availability shall be on pro rata basis. At zero availability, no transmission charges shall be payable
2. For new HVDC stations, Target Availability shall be considered as 95% for first three years of operations for the purpose of incentive.
3. For AC system, two trippings per year shall be allowed, and after two trippings in a year, additional 12 hours outage shall be considered in addition to the actual outage
4. In case of outage of a transmission element affecting evacuation of power from a generating station, outage hour shall be multiplied by a factor of 2
[clause 67]
Operation & Maintenance expenses
1. O&M expense/bay:
FY 2016-17 - Rs. 7.6 lakh/bay
FY 2017-18 - Rs. 8.04 lakh/bay
FY 2018-19 - Rs. 8.50 lakh/bay
FY 2019-20 - Rs. 8.98 lakh/bay
FY 2020-21 - Rs. 9.50 lakh/bay
2. O&M expense/ckt km:
FY 2016-17 - Rs. 0.64 lakh/ckm
FY 2017-18 - Rs. 0.68 lakh/ckm
FY 2018-19 - Rs. 0.72 lakh/ckm
FY 2019-20 - Rs. 0.76 lakh/ckm
FY 2020-21 - Rs. 0.81 lakh/ckm
[clause 68.2.1]
Payment of Transmission Charges
1. The Annual Transmission Charges for each financial year of the Control Period shall provide for the recovery of the Aggregate Revenue Requirement of the Transmission Licensee for the respective financial year of the Control Period, as reduced by the amount of Non-Tariff Income, income from Other Business and short-term transmission charges of the previous year
2. In case of competitively awarded transmission system projects the annual transmission charges shall be as per the annual Transmission Service Charges (TSC) quoted
[clause 65]
Allocation of Annual Transmission Charges
1. The Aggregate Revenue Requirement of the Transmission Licensee shall be shared by all long-term users and medium-term users of the transmission system on monthly
basis in the ratio of their respective contracted transmission capacities to the total contracted transmission capacity, in accordance with the following formula:
ATCn = (Transmission ARR x CCn÷SCC) ÷ 12
where,
ATCn = annual transmission charges payable by the nth long-termuser or medium-term user of the transmission system
CCn = capacity contracted in MW by the nthlong-term user or medium-termuser of the transmission system
SCC = sum of capacities contracted in MW by all long-term users andmedium-term users of the transmission system
2. The short-term users of the transmission system shall pay transmission charges on Rs/MW/day basis, in accordance with the following formula:
TC (Rs/MW/day) = (Transmission ARR÷SCC) ÷365
Where,
TC (Rs/MW/day) = transmission charges payable by the short-termuser of the transmission system;
Transmission ARR = Aggregate Revenue Requirement of the Transmission Licensee
SCC = sum of capacities contracted in MW by all long-term users andmedium-term users of the transmission system
3. For short-term collective transactions through power exchanges, Transmission Charges shall be denominated in Rs/kWh terms, in accordance with the following formula:
TC (Rs/kWh) = Transmission ARR÷Total units wheeled,
Where,
TC (Rs/kWh) = Transmission Charges payable in the case of short-termcollective transactions through power exchanges;
Transmission ARR = Aggregate Revenue Requirement of the Transmission Licensee.
Total units wheeled = total energy units wheeled through thetransmission system, which shall be equal to the total energy input into the intra-State transmission system during the financial year
[clause 72]
Treatment of losses
The energy losses in the transmission system of the Transmission Licensee, as determined by the State Load Despatch Centre, shall be borne by the Transmission System Users in proportion to their usage of the intra-State transmission system
[clause 75]
Incentive
The Transmission Licensee shall be entitled to incentive for increase in annual availability beyond the
target availability in accordance with the following formula:
Incentive = ATC x [Annual availability achieved – Target Availability]/ Target Availability
Where;
ATC= Annual Transmission Charges of the Transmission Licensee for the concerned year
Incentive shall be shared by the long-term and medium-term customers in the ratio of their average allotted transmission capacity for the year
No incentive shall be payable for availability beyond 99.75%
[clause 73]
Corrigendum/ Amendment, if any
a. dated December 2, 2016
b. dated August 18, 2018
GERC Tariff Regulations, 2016 (1st Amendment)

Resolution By
GERC


Notification No. and date
No. 7 of 2016 dated December 2, 2016


Objectives
Determination of tariff in all cases covered under these Regulations


Regulations called as
Gujarat Electricity Regulatory Commission (Multi-Year Tariff) (First Amendment) Regulations, 2016


Effective Control period
April 1, 2016 to March 31, 2022


Cut-off Date
No Amendment


Commercial Operation Date (COD)/ Date of commercial operation
No Amendment


Useful Life
No Amendment


Controllable Factors
No Amendment


Un-controllable Factors
No amendment


Sharing Norms
No amendment


Norms of operation
No amendment


Operation & Maintenance expenses
No amendment


Payment of Transmission Charges
No amendment


Allocation of Annual Transmission Charges
No amendment


Treatment of losses
No amendment


Incentive
No amendment


Reactive Energy Charges
No amendment


Corrigendum/ Amendment, if any
No amendment


GERC Tariff Regulations, 2016 (2nd Amendment)

Resolution By
GERC


Notification No. and date
No. 2 of 2018 dated August 18, 2018


Objectives
Determination of tariff in all cases covered under these Regulations


Regulations called as
Gujarat Electricity Regulatory Commission (Multi-Year Tariff) (Second Amendment) Regulations, 2018


Effective Control period
April 1, 2016 to March 31, 2023


Cut-off Date
No Amendment


Commercial Operation Date (COD)/ Date of commercial operation
No Amendment


Useful Life
No Amendment


Controllable Factors
No amendment


Un-controllable Factors
No amendment


Sharing Norms
No amendment


Norms of operation
No amendment


Operation & Maintenance expenses
No amendment


Payment of Transmission Charges
No amendment


Allocation of Annual Transmission Charges
For short-term users, including the collective transactions through power exchanges, the transmission charges shall be determined in Rs per kWh terms, in accordance with the following formula:
TC (Rs/kWh) = Transmission ARR÷Total units wheeled,
Where,
TC (Rs/kWh) = Transmission Charges payable in the case of short-termcollective transactions through power exchanges;
Transmission ARR = Aggregate Revenue Requirement of the Transmission Licensee.
Total units wheeled = total energy units wheeled through the transmission system, which shall be equal to the total energy input into the intra-State transmission system during the financial year
[clause 72.2]