Tariff Regulations
Assam
The Assam Electricity Regulatory Commission has issued the Terms and conditions for determination of Multi Year Tariff regulations dated 28th June 2018. The regulation is effective for three financial years from April 1, 2019 to March 31, 2022. The primary purpose of these regulations is to determine the tariff in all cases covered under these Regulations from 1st April, 2019 onwards.
AERC MYT Regulations 2018
Resolution By
AERC
Notification No. and date
AERC. 673/2018/196 dated 28th June 2018
Objectives
For determination of tariff in all cases covered under these Regulations from 1st April, 2019 onwards
Regulations called as
Assam Electricity Regulatory Commission (Terms and Conditions for determination of Multi Year Tariff) Regulations, 2018
Effective Control period
Three financial years from April 1, 2019 to March 31, 2022
[clause 2.1.18]
[clause 2.1.18]
Cut-off Date
31st March of the year closing after two years of the year of commercial operation of the project
[Clause 2.1.19]
[Clause 2.1.19]
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 charging and trial operation for transmitting electricity and communication signal from sending end to receiving end
[clause 2.1.20(c)]
[clause 2.1.20(c)]
Useful Life
AC and DC sub-station- 25 years
Gas Insulated Substation (GIS) – 25 years
Transmission line (including HVAC & HVDC) - 35 years
Gas Insulated Substation (GIS) – 25 years
Transmission line (including HVAC & HVDC) - 35 years
Controllable Factors
The “controllable factors” shall include but shall not be limited to the following:
a. Availability
b. O&M Expenses (excluding terminal liabilities with regard to employees on account of changes in pay scales or dearness allowance due to inflation)
c. Depreciation
d. Interest and Finance Charges
e. Return on Equity
f. Capital Expenditure
g. Intra State Transmission losses
[Clause No. 10.2]
a. Availability
b. O&M Expenses (excluding terminal liabilities with regard to employees on account of changes in pay scales or dearness allowance due to inflation)
c. Depreciation
d. Interest and Finance Charges
e. Return on Equity
f. Capital Expenditure
g. Intra State Transmission losses
[Clause No. 10.2]
Un-controllable Factors
The “controllable factors” shall include but shall not be limited to the following:
a. Terminal liabilities with regard to employees on account of changes in pay scales
b. One-time expenses such as expense due to change in accounting policy & estimates, arrears paid due to revision of pay based on pay commission recommendations and interim relief etc
c. All statutory levies and taxes, if any excluding tax on Income
d. Inter State Transmission losses
e.Non-Tariff income
[Clause No. 10.2]
a. Terminal liabilities with regard to employees on account of changes in pay scales
b. One-time expenses such as expense due to change in accounting policy & estimates, arrears paid due to revision of pay based on pay commission recommendations and interim relief etc
c. All statutory levies and taxes, if any excluding tax on Income
d. Inter State Transmission losses
e.Non-Tariff income
[Clause No. 10.2]
Sharing Norms
a. One-third of the amount of such gain shall be passed on as a rebate in tariff over such period as may be stipulated
b. The balance amount, which will amount to two-third of such gain, may be utilised at the discretion of the Transmission Licensee
c. One-third of the amount of such loss may be passed on as an additional charge in tariff over such period as may be stipulated
d. The balance amount of loss shall be absorbed by the Transmission Licensee
[clause 12]
b. The balance amount, which will amount to two-third of such gain, may be utilised at the discretion of the Transmission Licensee
c. One-third of the amount of such loss may be passed on as an additional charge in tariff over such period as may be stipulated
d. The balance amount of loss shall be absorbed by the Transmission Licensee
[clause 12]
Norms of operation
Target availability for full recovery of annual transmission charges
(a) AC system : 98 per cent
(b) HVDC bi-pole links & HVDC back to back stations : 95 per cent
For incentive consideration:
(a) AC system : 98.5 per cent
(b) HVDC bi-pole links & HVDC back to back stations : 96 per cent
For new HVDC station NATAF shall be considered as 95% for first three years of operations for the purpose of incentive
No incentive shall be payable above the availability of 99.75%
[clause 65]
(a) AC system : 98 per cent
(b) HVDC bi-pole links & HVDC back to back stations : 95 per cent
For incentive consideration:
(a) AC system : 98.5 per cent
(b) HVDC bi-pole links & HVDC back to back stations : 96 per cent
For new HVDC station NATAF shall be considered as 95% for first three years of operations for the purpose of incentive
No incentive shall be payable above the availability of 99.75%
[clause 65]
Operation & Maintenance expenses
For exisitng transmission licensee:
The O&M expenses for the first year of the Control Period shall be approved by the Commission taking into account the actual O&M expenses for last five years till Base Year
subject to prudence check by the Commission
The O&M expenses for the nth year and also for the year immediately preceding the Control
Period shall be approved based on the formula given below:-
O&Mn = R&Mn + EMPn + A&Gn
Where –
O&Mn – Operation and Maintenance expense for the nth year;
EMPn – Employee Costs for the nth year;
R&Mn – Repair and Maintenance Costs for the nth year;
A&Gn – Administrative and General Costs for the nth year
For new licensee:
For the New transmission licensees, the year-wise O&M norms shall be determined on case to case basis
[clause 66.6]
The O&M expenses for the first year of the Control Period shall be approved by the Commission taking into account the actual O&M expenses for last five years till Base Year
subject to prudence check by the Commission
The O&M expenses for the nth year and also for the year immediately preceding the Control
Period shall be approved based on the formula given below:-
O&Mn = R&Mn + EMPn + A&Gn
Where –
O&Mn – Operation and Maintenance expense for the nth year;
EMPn – Employee Costs for the nth year;
R&Mn – Repair and Maintenance Costs for the nth year;
A&Gn – Administrative and General Costs for the nth year
For new licensee:
For the New transmission licensees, the year-wise O&M norms shall be determined on case to case basis
[clause 66.6]
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; and
d. reactive energy charges
[clause 60.1]
a. transmission system access charges;
b. annual transmission charges;
c. per unit charges for energy transmitted; and
d. reactive energy charges
[clause 60.1]
Allocation of Annual Transmission Charges
The transmission charge (inclusive of incentive) payable for a calendar month for a transmission system or part thereof shall be computed in accordance with the following
equation:
For AC system-
a) For TAFM < 98%
AFC x (NDM/NDY) x (TAFM/98%)
b) For TAFM: 98%< TAFM < 98.5%
AFC x (NDM/NDY) x (1)
c) For TAFM: 98.5%< TAFM < 99.75%
AFC x (NDM/NDY) x (TAFM/98.5%)
d) For TAFM > 99.75%
AFC x (NDM/NDY) x (99.75%/98.5%)
For HVDC bi-pole links and HVDC back-to-back Stations:
a) For TAFM < 95%
AFC x (NDM/NDY) x (TAFM/95%)
b) For TAFM: 95%< TAFM < 96%
AFC x (NDM/NDY) x (1)
c) For TAFM: 96%< TAFM < 99.75%
AFC x (NDM/NDY) x (TAFM/96%)
d) For TAFM > 99.75%
AFC x (NDM/NDY) x (99.75%/96%)
Where,
AFC = Annual Fixed Cost specified for the year in Rupees
NATAF = Normative annual Transmission availability factor, in per cent
NDM = Number of days in the month
NDY = Number of days in the year
TAFM = Transmission System availability factor for the month, in percent
The monthly Transmission Tariff as determined by the Commissions hall be shared by all long-term and medium-term open access customers on monthly basis in the ratio of their allotted capacities
[clause 69]
equation:
For AC system-
a) For TAFM < 98%
AFC x (NDM/NDY) x (TAFM/98%)
b) For TAFM: 98%< TAFM < 98.5%
AFC x (NDM/NDY) x (1)
c) For TAFM: 98.5%< TAFM < 99.75%
AFC x (NDM/NDY) x (TAFM/98.5%)
d) For TAFM > 99.75%
AFC x (NDM/NDY) x (99.75%/98.5%)
For HVDC bi-pole links and HVDC back-to-back Stations:
a) For TAFM < 95%
AFC x (NDM/NDY) x (TAFM/95%)
b) For TAFM: 95%< TAFM < 96%
AFC x (NDM/NDY) x (1)
c) For TAFM: 96%< TAFM < 99.75%
AFC x (NDM/NDY) x (TAFM/96%)
d) For TAFM > 99.75%
AFC x (NDM/NDY) x (99.75%/96%)
Where,
AFC = Annual Fixed Cost specified for the year in Rupees
NATAF = Normative annual Transmission availability factor, in per cent
NDM = Number of days in the month
NDY = Number of days in the year
TAFM = Transmission System availability factor for the month, in percent
The monthly Transmission Tariff as determined by the Commissions hall be shared by all long-term and medium-term open access customers on monthly basis in the ratio of their allotted capacities
[clause 69]
Treatment of losses
The energy losses in the transmission system of the Transmission Licensee, as determined by the State Load Despatch Centre and approved by the Commission, shall be borne by the Transmission System Users pro-rata to their usage of the intra-State transmission system
[clause 71]
[clause 71]
Corrigendum/ Amendment, if any
No