KERC Transmission Tariff Regulations, 2006
Resolution By
KERC
Notification No. and date
D/01/6 dated 31st May 2006
Objectives
Determination of tariff in all cases covered under these Regulations
Regulations called as
Karnataka Electricity Regulatory Commission (Terms and Conditions for Determination of Transmission Tariff) Regulations, 2006
Effective Control period
The first Control Period under the MYT framework shall be of a duration of 3 years commencing from FY08
[clause 2.3]
[clause 2.3]
Cut-off Date
The date of first financial year closing after one year of the date of commercial operation of the transmission system
[clause 3.6.1]
[clause 3.6.1]
Useful Life
a. Transformers having a rating of 100 kVA and above - 25 years
b. Switchgear, including cable connections - 25 years
c. Underground Cable Including joint boxes and disconnected boxes - 35 years
d. Lines on fabricated steel supports operating at nominal voltages higher than 66 kV - 35 years
[appendix 2]
b. Switchgear, including cable connections - 25 years
c. Underground Cable Including joint boxes and disconnected boxes - 35 years
d. Lines on fabricated steel supports operating at nominal voltages higher than 66 kV - 35 years
[appendix 2]
Controllable Factors
a. Employee Cost
b. Admn. & General Expenses
c. Interest & Finance Charges
d. Return on Equity
e. Depreciation
f. Non-tariff income
g. Operation & Maintenance expenses
[clause 2.5.3]
b. Admn. & General Expenses
c. Interest & Finance Charges
d. Return on Equity
e. Depreciation
f. Non-tariff income
g. Operation & Maintenance expenses
[clause 2.5.3]
Un-controllable Factors
a. Expenses on account of Inflation
b. Taxes on Income
[clause 2.5.3]
b. Taxes on Income
[clause 2.5.3]
Sharing Norms
Upon completion of annual performance review, the Commission shall pass an order recording:
a. The approved aggregate gain or loss to the Licensee on account of uncontrollable factors and the mechanism by which the Licensee shall pass through such gains or losses
b. The approved aggregate gain or loss to the Licensee on account of Controllable factors and the mechanism to share such gains or losses
[clause 2.7.6]
a. The approved aggregate gain or loss to the Licensee on account of uncontrollable factors and the mechanism by which the Licensee shall pass through such gains or losses
b. The approved aggregate gain or loss to the Licensee on account of Controllable factors and the mechanism to share such gains or losses
[clause 2.7.6]
Operation & Maintenance expenses
1. O&M expenses (Rs. in lakh per ckt-km) for year 2007-08, 2008-09 and 2009-10 are Rs. 0.255, Rs. 0.266 and Rs. 0.277 respectively.
2. O&M expenses (Rs. in lakh per bay) for year 2007-08, 2008-09 and 2009-10 are Rs. 31.63, Rs. 32.90 and Rs. 34.22 respectively.
[clause 3.11.3]
2. O&M expenses (Rs. in lakh per bay) for year 2007-08, 2008-09 and 2009-10 are Rs. 31.63, Rs. 32.90 and Rs. 34.22 respectively.
[clause 3.11.3]
Payment of Transmission Charges
1. Full annual transmission charges shall be recoverable at the target availability stipulated in Regulation 3.02.
2. Payment of transmission charges below the target availability shall be on pro rata basis.
3. The transmission charges shall be calculated on monthly basis.
[clause 3.16]
2. Payment of transmission charges below the target availability shall be on pro rata basis.
3. The transmission charges shall be calculated on monthly basis.
[clause 3.16]
Allocation of Annual Transmission Charges
1. The transmission tariff payable by the open access customers of the Transmission system shall be determined in accordance with the following formula:
TR = Net ARR/(12xTCC)
Where, TR: Transmission Rate in Rs./kW/month Net ARR: Net ARR, as determined.
TCC: Total Contracted Capacity in kW of the Transmission system by all Long-Term open access customers.
2. For short term open access customers the transmission charges shall be as follows:
2.1. Short Term Rate [ST rate] per day = 0.25* [Transmission expenditure /Annual peak]/365
2.2. Upto 6 hrs in a day in one block=0.25 * ST rate
2.3. More than 6 Hrs and upto 12 hrs in a day in one block= 0.50 * ST rate
2.4. More than 12 Hrs and upto 24 hrs in a day in one block= ST rate
[clause 3.15]
TR = Net ARR/(12xTCC)
Where, TR: Transmission Rate in Rs./kW/month Net ARR: Net ARR, as determined.
TCC: Total Contracted Capacity in kW of the Transmission system by all Long-Term open access customers.
2. For short term open access customers the transmission charges shall be as follows:
2.1. Short Term Rate [ST rate] per day = 0.25* [Transmission expenditure /Annual peak]/365
2.2. Upto 6 hrs in a day in one block=0.25 * ST rate
2.3. More than 6 Hrs and upto 12 hrs in a day in one block= 0.50 * ST rate
2.4. More than 12 Hrs and upto 24 hrs in a day in one block= ST rate
[clause 3.15]
Treatment of losses
1. Transaction should be charged on the basis of average losses arrived at for the transmission system.
2. In case the actual transmission loss exceeds the normative loss level approved by the Commission, such excess loss shall be to the account of the Transmission Licensee and the Transmission Licensee shall compensate the Users at the weighted average cost of power purchase in that Financial year.
3. In case the actual transmission loss is less than the approved loss level, such savings shall be shared between the Transmission Licensee and the Users in the ratio of 70:30 during the first Control Period and in the ratio as may be decided by the Commission in the subsequent Control periods.
[clause 3.4]
2. In case the actual transmission loss exceeds the normative loss level approved by the Commission, such excess loss shall be to the account of the Transmission Licensee and the Transmission Licensee shall compensate the Users at the weighted average cost of power purchase in that Financial year.
3. In case the actual transmission loss is less than the approved loss level, such savings shall be shared between the Transmission Licensee and the Users in the ratio of 70:30 during the first Control Period and in the ratio as may be decided by the Commission in the subsequent Control periods.
[clause 3.4]
Incentive
(1) The transmission licensee shall be entitled to incentive on achieving annual availability beyond the target availability as per regulation 3.2, in accordance with the following formula:
Incentive = Annual Transmission Charges x [Annual availability achieved - Target Availability] / Target Availability;
Provided that no incentive shall be payable above the availability of 99.75%. (2) 50% of the Incentive shall be shared by the long-term customers in the ratio of their average allotted transmission capacity for the year.
[clause 3.17]
Incentive = Annual Transmission Charges x [Annual availability achieved - Target Availability] / Target Availability;
Provided that no incentive shall be payable above the availability of 99.75%. (2) 50% of the Incentive shall be shared by the long-term customers in the ratio of their average allotted transmission capacity for the year.
[clause 3.17]
Corrigendum/ Amendment, if any
a. dated Februay 1, 2012
b. dated May 18, 2016
b. dated May 18, 2016
KERC Tariff Regulations, 2006 (1st Amendment)
Resolution By
KERC
Notification No. and date
B/01/12 dated 1st February 2012
Objectives
Determination of tariff in all cases covered under these Regulations
Regulations called as
Karnataka Electricity Regulatory Commission (Terms and Conditions for Determination of Transmission Tariff) (First Amendment) Regulations, 2012
Corrigendum/ Amendment, if any
Amendments are not with regards to the parameters.
KERC Tariff Regulations, 2006 (2nd Amendment)
Resolution By
KERC
Notification No. and date
B/6/15(1) dated 18th May 2016
Objectives
Determination of tariff in all cases covered under these Regulations
Regulations called as
Karnataka Electricity Regulatory Commission (Terms and Conditions for Determination of Transmission Tariff) (Second Amendment) Regulations, 2015
Effective Control period
Each control period shall be a period of 5 financial years or such other period as may be fixed by the Commission from time to time
[clause 2.3]
[clause 2.3]
Cut-off Date
[Clause deleted]
Operation & Maintenance expenses
Norms for O&M expenses per ckt-km and per bay in clause 3.11.2 and 3.11.3 are deleted.
[clause 2, subclause 3.11.2 and 3.11.3]
[clause 2, subclause 3.11.2 and 3.11.3]
Allocation of Annual Transmission Charges
1. For short term open access customers, the transmission charges shall be as follows:
Short term (ST) rate per day / kW = 0.25 (net ARR / TCC) / 365
TCC = Total Contracted Capacity in kW of the Transmission system by all Long-Term Open access customers.
Net ARR : Net ARR as determined.
2. For short term open access customers the transmission charges shall be as follows:
2.1. Upto 6 Hrs in day in one block: 0.25 * ST Rate
2.2. More than 6 Hrs and upto 12 Hrs in day in one block: 0.50 * ST rate
More than 12 Hrs and upto 24 Hrs in a day in one block. : Equal to ST rate
[clause 2, subclause 3.15.1]
Short term (ST) rate per day / kW = 0.25 (net ARR / TCC) / 365
TCC = Total Contracted Capacity in kW of the Transmission system by all Long-Term Open access customers.
Net ARR : Net ARR as determined.
2. For short term open access customers the transmission charges shall be as follows:
2.1. Upto 6 Hrs in day in one block: 0.25 * ST Rate
2.2. More than 6 Hrs and upto 12 Hrs in day in one block: 0.50 * ST rate
More than 12 Hrs and upto 24 Hrs in a day in one block. : Equal to ST rate
[clause 2, subclause 3.15.1]
Treatment of losses
1. Transaction should be charged on the basis of average losses arrived at for the transmission system.
2. In case the actual transmission loss exceeds the normative loss level approved by the Commission,such excess loss shall be to the account of
Transmission Licensee and the Transmission Licensee shall be liable for penalty at the rate of 1% of the allowable RoE for every 0.5% variation in actual transmission loss over the approved range of transmission losses for the relevant period. Provided that if the actual transmission loss falls within the approved band, the
transmission licensee shall not be levied penalty or allowed any incentive.
3. In case the actual transmission loss is less than the approved loss level, such savings shall be shared between the Transmission Licensee and the Distribution licensee in the ratio of 50:50or in the ratio as may be decided by the Commission from time to time. Provided that the savings shall be computed at the rate of 1% of the allowable RoE for every 0.5% reduction in actual transmission loss below the lowerlimit of approved range of transmission loss for the relevant period.
[clause2, subclause 3.4]
2. In case the actual transmission loss exceeds the normative loss level approved by the Commission,such excess loss shall be to the account of
Transmission Licensee and the Transmission Licensee shall be liable for penalty at the rate of 1% of the allowable RoE for every 0.5% variation in actual transmission loss over the approved range of transmission losses for the relevant period. Provided that if the actual transmission loss falls within the approved band, the
transmission licensee shall not be levied penalty or allowed any incentive.
3. In case the actual transmission loss is less than the approved loss level, such savings shall be shared between the Transmission Licensee and the Distribution licensee in the ratio of 50:50or in the ratio as may be decided by the Commission from time to time. Provided that the savings shall be computed at the rate of 1% of the allowable RoE for every 0.5% reduction in actual transmission loss below the lowerlimit of approved range of transmission loss for the relevant period.
[clause2, subclause 3.4]