Tariff Regulations
Maharashtra
The Maharashtra Electricity Regulatory Commission has issued the Multi Year Tariff regulations dated 1st August 2019. The regulation is effective from April 1, 2020 to March 31, 2025. The primary purpose of the regulations is to determine of Aggregate Revenue Requirement, Tariff, and Fees and Charges of generating companies, transmission & distribution licensees and SLDC.
MERC MYT Regulations 2019
Resolution By
MERC
Notification No. and date
No. MERC/Tech/Regulation/2019/471 dated August 1, 2019
Objectives
For determination of Aggregate Revenue Requirement, Tariff, and Fees and Charges of MSLDC in all matters covered under these Regulations
Regulations called as
Maharashtra Electricity Regulatory Commission (Multi Year Tariff) Regulations, 2019
Effective Control period
April 1, 2020 up to March 31, 2025
[clause 1.3]
[clause 1.3]
Cut-off Date
last day of the calendar month after thirty-six months from the date of commercial operation of the project
[clause 2.23]
[clause 2.23]
Commercial Operation Date (COD)/ Date of commercial operation
In case of a transmission system, COD means the date declared by the Transmission Licensee from 0000 hour of which an element of the transmission system is in regular service after successful trial operation for transmitting electricity and communication signal.
[clause 2.25c]
[clause 2.25c]
Useful Life
AC and DC sub-station- 35 years
Gas Insulated Substation (GIS) – 35 years
Transmission line (including HVAC & HVDC) - 35 years
[clause 2.89]
Gas Insulated Substation (GIS) – 35 years
Transmission line (including HVAC & HVDC) - 35 years
[clause 2.89]
Controllable Factors
a. Variation in operational norms
b. Variation in amount of interest on working capital
c. Variation in Operation & Maintenance expenses
[clause 9.2]
b. Variation in amount of interest on working capital
c. Variation in Operation & Maintenance expenses
[clause 9.2]
Un-controllable Factors
a. Force Majeure events
b. Change in law
c. Variation in inter-State Transmission Charges
d. Variation in market interest rates for long term loans
[clause 9.1]
b. Change in law
c. Variation in inter-State Transmission Charges
d. Variation in market interest rates for long term loans
[clause 9.1]
Sharing Norms
1. Two-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 11]
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 11]
Norms of operation
1. Target availability for the Transmission Licensee shall be as under:
1.1. For full recovery of Annual Transmission Charges:
(i) AC system: 98%
(ii) HVDC bi-pole links and HVDC back-to-back stations : 95 per cent
1.2. For Additional Rate of Return on Equity consideration:
(i) AC system : 99 per cent;
(ii) HVDC bi-pole links and HVDC back-to-back stations : 96 per cent;
2. Recovery of annual transmission charges below the level of target availability shall be on pro-rata basis, and at zero availability, no transmission charges shall be payable.
3. For AC system, two trippings per element per year shall be allowed,
4. In case of outage of a transmission element affecting evacuation of power from a generating Station, outage hours shall be multiplied by a factor of 2
.[clause 60.1]
1.1. For full recovery of Annual Transmission Charges:
(i) AC system: 98%
(ii) HVDC bi-pole links and HVDC back-to-back stations : 95 per cent
1.2. For Additional Rate of Return on Equity consideration:
(i) AC system : 99 per cent;
(ii) HVDC bi-pole links and HVDC back-to-back stations : 96 per cent;
2. Recovery of annual transmission charges below the level of target availability shall be on pro-rata basis, and at zero availability, no transmission charges shall be payable.
3. For AC system, two trippings per element per year shall be allowed,
4. In case of outage of a transmission element affecting evacuation of power from a generating Station, outage hours shall be multiplied by a factor of 2
.[clause 60.1]
Operation & Maintenance expenses
1. The norms for O&M expenses for the Maharashtra State Electricity Transmission Company Limited for first year of control period (FY 2020-21) shall be:
(a) O&M expense per ckt-km
- 765 kV : Rs. .86 lakh per ckt-km
- 400 kV : Rs. 0.61 lakh per ckt-km
- >66kV&66kV&
(a) O&M expense per ckt-km
- 765 kV : Rs. .86 lakh per ckt-km
- 400 kV : Rs. 0.61 lakh per ckt-km
- >66kV&66kV&
Payment of Transmission Charges
The transmission charges for access to and use of the intra-State transmission system shall comprise any of the following components or a combination of the following components:
(a) Transmission system access charges
(b) Annual transmission charges
(c) per unit charges for energy transmitted
(d)Reactive energy charges
[Clause 57.1]
(a) Transmission system access charges
(b) Annual transmission charges
(c) per unit charges for energy transmitted
(d)Reactive energy charges
[Clause 57.1]
Allocation of Annual Transmission Charges
1. The long-term Transmission System Users shall share the Total Transmission System Cost(TTSC) of the intra-State transmission system in the proportion of Base Transmission Capacity Rights of each Transmission System User to the total Base Transmission Capacity Rights allotted in the intra-State transmission system.
2. The Annual Transmission Charge payable by Transmission System User shall be computed in accordance with the following formula:
2.1. ATC(u)(t) = TTSC(t) X ([Base TCR(u)](t) / Σ u=1 to n [Base TCR(u)](t))
Where,
ATC(u)(t) = Annual Transmission Charges to be shared by Transmission System User (u) for the yearly period (t)
Base TCR (u) = [CPD(u)(t) + NCPD(u)(t)] /2
Where,
Base TCR represents the Base Transmission Capacity Right of each Transmission System User (u) for the yearly period (t)
CPD (u)(t) = Average Coincident Peak Demand of the Transmission System User (u) for the yearly period (t)
NCPD (u)(t) = Average Non-coincident Peak Demand of the Transmission System User (u) for the yearly period (t)
[clause 65]
2. The Annual Transmission Charge payable by Transmission System User shall be computed in accordance with the following formula:
2.1. ATC(u)(t) = TTSC(t) X ([Base TCR(u)](t) / Σ u=1 to n [Base TCR(u)](t))
Where,
ATC(u)(t) = Annual Transmission Charges to be shared by Transmission System User (u) for the yearly period (t)
Base TCR (u) = [CPD(u)(t) + NCPD(u)(t)] /2
Where,
Base TCR represents the Base Transmission Capacity Right of each Transmission System User (u) for the yearly period (t)
CPD (u)(t) = Average Coincident Peak Demand of the Transmission System User (u) for the yearly period (t)
NCPD (u)(t) = Average Non-coincident Peak Demand of the Transmission System User (u) for the yearly period (t)
[clause 65]
Treatment of losses
1. The energy losses in the intra-State transmission system, as determined by SLDC, shall be considered as Transmission Losses and borne by the Transmission System Users in proportion to their usage of the intra-State transmission system:
2. The quantum of energy consumed by the auxiliary equipment of a transmission sub-station and the station transformer losses within the sub-station shall not be accounted for under the Transmission Losses
3. Provided further that the energy consumed for supply of power by the transmission sub-station to the associated offices of the Licensee, its housing colony and other facilities, and for construction works at the sub-station, shall not be considered as energy consumed by the auxiliary equipment of a transmission sub-station.
[clause 69]
2. The quantum of energy consumed by the auxiliary equipment of a transmission sub-station and the station transformer losses within the sub-station shall not be accounted for under the Transmission Losses
3. Provided further that the energy consumed for supply of power by the transmission sub-station to the associated offices of the Licensee, its housing colony and other facilities, and for construction works at the sub-station, shall not be considered as energy consumed by the auxiliary equipment of a transmission sub-station.
[clause 69]
Incentive
For payment of bills of transmission charges within 7 days of presentation of bills, through Letter of Credit or otherwise or through NEFT/RTGS, a rebate of 1% on billed amount, excluding the taxes, cess, duties, etc., shall be allowed.
[clause 36]
[clause 36]
Reactive Energy Charges
1. A Generating Station shall inject/absorb the reactive energy in to the grid on the basis of machine capability as per the directions of MSLDC.
2. Reactive energy exchange, only if made as per the directions of MSLDC, for the applicable duration (injection or absorption) shall be compensated/levied by the MSLDC to the Generating Station, as specified in the MERC (State Grid Code) Regulations, 2006.
3. The Transmission System Users shall be subjected to Incentive/Disincentive to be compensated/levied by the MSLDC for maintaining the reactive energy balance in the transmission system, as specified in the MERC (State Grid Code) Regulations, 2006.
[clause 70]
2. Reactive energy exchange, only if made as per the directions of MSLDC, for the applicable duration (injection or absorption) shall be compensated/levied by the MSLDC to the Generating Station, as specified in the MERC (State Grid Code) Regulations, 2006.
3. The Transmission System Users shall be subjected to Incentive/Disincentive to be compensated/levied by the MSLDC for maintaining the reactive energy balance in the transmission system, as specified in the MERC (State Grid Code) Regulations, 2006.
[clause 70]
Corrigendum/ Amendment, if any
No