1. The Commission vide order dated 4.6.2022 in Petition No. 381/TT/2020 trued up the annual fees and charges of 2014-2019 period and determined the fees and charges of 2019-2024 tariff period for Asset-I : 1099.803 km of Fiber Optic Communication System in lieu of existing Microwave, Asset-II : 1628.966 km of Fiber Optic Communication System in lieu of existing Microwave, Asset-III : 493.064 km of Fiber Optic Communication System in lieu of existing Microwave and Asset-IV : 530.621 km of Fiber Optic Communication System in lieu of existing Microwave under “Fiber Optic Communication System in lieu of existing Unified Load Dispatch & Communication (ULDC) Microwave links in Northern Region” Scheme based on actual expenditure for the period from 1.4.2014 to 31.3.2019 and also truedup the tariff of the 2014-2019 tariff period and determined the tariff of the 2019-2024 tariff period in respect of Asset V : Fiber Optic Communication System (847.124 km) in lieu of existing Unified Load Despatch and Communication (ULDC) Microwave Links in Northern Region under the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014 (hereinafter referred to as “the 2014 Tariff Regulations”) and the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019 (hereinafter referred to as “the 2019 Tariff Regulations”).
2. It is observed that following inadvertent errors have crept into the order dated 4.6.2022 in Petition No. 381/TT/2020 (a) the sum total of the capital cost of the State Portion of Asset-IV as on 31.3.2019 in paragraph 35 was wrongly considered as Rs. 1019.82 lakh instead of Rs. 1040.39 lakh and (b) the Additional Capital Expenditure (ACE) in respect of the State Portion of Asset-IV during 2014-2015 and 2015-2016 in paragraph 54 was inadvertently considered as Rs. 5.95 lakh and Rs. 15.20 lakh instead of Rs. 8.65 lakh and Rs. 33.07 lakh respectively. We have found these errors to be arithmetical errors. Further, these errors have consequential impact on the Fee and Charges allowed for the State Portion of Asset-IV for the 2014-2019 and 2019-2024 tariff periods.
3. It is also observed that the Interest on Working Capital (IWC) and the O&M Expenses allowed for the Central Portion and State Portion of Asset-V for the 2014-2019 tariff period in paragraph 54 have been inadvertently interchanged. It is a clerical error which does not have any impact on the Annual Fixed Charges allowed for Asset-V.
4. These inadvertent errors are being rectified in exercise of powers in terms of the Regulation 111 read with Regulation 103A of the Central Electricity Regulatory Commission (Conduct of Business) Regulations, 1999.
5. Accordingly, following corrections are made in order dated 4.6.2022 in Petition No. 381/TT/2020:
a. Table under paragraph 35 (in respect of Asset IV) are revised as follows:
(Rs. in lakh)
Assets
Sector
Capital cost allowed as on 1.4.2014
Additional Capital Expenditure
Total capital cost as on 31.3.2019
2014-2015
2015-2016
Asset-I
Central Portion
877.24
-49.43
5.04
832.85
State Portion
2066.35
5.95
15.20
2087.50
Asset-II
Central Portion
569.54
-25.28
16.58
560.84
State Portion
2964.68
34.89
71.44
3071.00
Asset-III
Central Portion
517.97
-22.78
7.05
502.24
State Portion
1532.39
8.44
28.44
1569.27
Asset-IV
Central Portion
445.81
2.32
-103.83
344.30
State Portion
998.67
8.65
33.07
1040.39
Asset-V
Central Portion
208.63
94.34*
302.97
State Portion
1660.24
977.66*
2637.90
*additional capitalization in 2014-2019 period
b. Tables under paragraph 41 (in respect of Asset IV) are revised as follows:
(Rs. in lakh)
Monthly capital recovery charges for loan
Particulars
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
Asset-I - Central Portion
6.29
5.89
5.93
5.94
5.94
Asset-I - State Portion
15.05
15.10
15.23
15.23
15.23
Asset-II - Central Portion
4.06
3.87
4.00
4.00
4.00
Asset-II - State Portion
21.51
21.79
22.37
22.37
22.37
Asset-III - Central Portion
3.68
3.51
3.56
3.56
3.56
Asset-III - State Portion
11.11
11.18
11.41
11.41
11.41
Asset-IV - Central Portion
3.18
3.20
2.39
2.39
2.39
Asset-IV-State Portion
7.24
7.31
7.57
7.57
7.57
(Rs. in lakh)
Monthly capital recovery charges for equity
Particulars
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
Asset-I - Central Portion
3.77
3.54
3.56
3.56
3.56
Asset-I - State Portion
8.91
8.94
9.01
9.01
9.01
Asset-II - Central Portion
2.45
2.34
2.41
2.41
2.41
Asset-II - State Portion
12.76
12.92
13.25
13.25
13.25
Asset-III - Central Portion
2.23
2.12
2.16
2.16
2.16
Asset-III - State Portion
6.61
6.65
6.78
6.78
6.78
Asset-IV - Central Portion
1.92
1.93
1.46
1.46
1.46
Asset-IV-State Portion
4.31
4.35
4.50
4.50
4.50
c. Table under paragraph 42, in respect of Asset IV, is revised as follows:
(Rs. in lakh)
Asset IV
Capital
Central Portion
State Portion
Retained Gross Capital Cost as on 1.4.2014
Loan
312.07
699.07
Equity
133.74
299.60
Total
445.81
998.67
Capital Cost Recovered up to 31.3.2019
Loan
57.24
148.58
Equity
16.47
42.79
Total
73.71
191.36
Net Capital Costas on 31.4.2019
Loan
183.78
556.49
Equity
86.82
256.81
Total
270.59
813.30
d. Table under paragraph 53, in respect of Asset IV, is revised as follows:
(Rs. in lakh)
Asset IV
Central Portion
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
Maintenance Spares (15% of O&M Expenses)
2.01
2.69
0.92
1.49
0.97
O&M Expenses (1 Month of O&M Expenses)
1.12
1.49
0.51
0.83
0.54
Receivables (2 months of Annual Charges)
12.80
13.66
8.97
9.64
9.04
Total Working Capital
15.92
17.84
10.39
11.95
10.54
Rate of Interest on Working Capital (in %)
13.50
13.50
13.50
13.50
13.50
Total Interest on Working Capital
2.15
2.41
1.40
1.61
1.42
Particulars
State Portion
Maintenance Spares (15% of O&M Expenses)
0.00
0.00
0.00
0.00
0.00
O&M Expenses (1 Month of O&M Expenses)
0.00
0.00
0.00
0.00
0.00
Receivables (2 months of Annual Charges)
23.63
23.85
24.69
24.70
24.70
Total Working Capital
23.63
23.85
24.69
24.70
24.70
Rate of Interest on Working Capital (in%)
13.50
13.50
13.50
13.50
13.50
Total Interest on Working Capital
3.19
3.22
3.33
3.33
3.33
e. The table under paragraph 54, in respect of State Portion of Asset IV and in respect of Central Portion and State Portion of Asset V are revised as follows:
(Rs. in lakh)
Asset-IV - State Portion - Fees and charges
Particulars
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
Opening Gross Capital Cost
998.67
1007.32
1040.39
1040.39
1040.39
Opening Gross Notional Loan
699.07
705.13
728.27
728.27
728.27
Opening Gross Equity
299.60
302.20
312.12
312.12
312.12
Recovered Gross Capital Cost (As on 1st April)
9.18
38.89
72.19
110.50
153.12
Recovered Gross Notional Loan
7.41
31.17
57.46
87.32
120.07
Recovered Gross Equity
1.77
7.72
14.73
23.19
33.05
Opening Net Capital Cost
989.49
968.43
968.20
929.89
887.27
Opening Net Notional Loan
691.66
673.95
670.82
640.96
608.21
Opening Net Equity
297.83
294.47
297.39
288.93
279.07
Recovered Capital Cost (During the Year)
29.71
33.29
38.32
42.61
47.43
Recovered Notional Loan
23.76
26.29
29.86
32.75
35.92
Recovered Equity
5.95
7.01
8.46
9.86
11.51
Closing Net Capital Cost
959.78
935.13
929.89
887.27
839.85
Closing Net Notional Loan
667.90
647.67
640.96
608.21
572.29
Closing Net Equity
291.88
287.46
288.93
279.07
267.56
Additional Capital Cost
8.65
33.07
0.00
0.00
0.00
Additional Notional Loan
6.06
23.15
0.00
0.00
0.00
Additional Equity
2.60
9.92
0.00
0.00
0.00
Years (Capital to be recovered up to 1.10.2028)
14.50
13.50
12.50
11.50
10.50
Months
174.00
162.00
150.00
138.00
126.00
Weighted Average Rate of Interest p.a.
9.2741%
9.2790%
9.2805%
9.2815%
9.2828%
Weighted Average Rate of Interest p.m.
0.7728%
0.7733%
0.7734%
0.7735%
0.7736%
Monthly Recovery Factors-Loan
0.010471
0.010847
0.011288
0.011814
0.012451
Monthly Capital Recovery Charge - Loan
7.24
7.31
7.57
7.57
7.57
Annual Capital Recovery Charge-Loan
86.91
87.72
90.87
90.87
90.88
Rate of Return on Equity p.a.
15.500%
15.500%
15.500%
15.500%
15.500%
Rate of Return on Equity p.m.
1.292%
1.292%
1.292%
1.292%
1.292%
Monthly Recovery Factors-Equity
0.014468
0.014763
0.015122
0.015565
0.016115
Monthly Capital Recovery Charge-Equity
4.31
4.35
4.50
4.50
4.50
Annual Capital Recovery Charge-Equity
51.71
52.17
53.97
53.97
53.97
Monthly Capital Recovery Charge - Total
11.55
11.66
12.07
12.07
12.07
Annual Capital Recovery Charge-Total
138.62
139.89
144.83
144.84
144.84
Fee & Charges (2014-19) (Annualized)
State Portion - Charges
Annual Capital Recovery Charge - Loan
86.91
87.72
90.87
90.87
90.88
Annual Capital Recovery Charge-Equity
51.71
52.17
53.97
53.97
53.97
Annual Capital Recovery Charge-Total
138.62
139.89
144.83
144.84
144.84
O&M Expenses
0.00
0.00
0.00
0.00
0.00
Interest on Working Capital
3.19
3.22
3.33
3.33
3.33
Total Fee & Charges (Annualized)
141.81
143.11
148.17
148.17
148.18
Interest on Working Capital
Maintenance Spares (15% of O&M)
0.00
0.00
0.00
0.00
0.00
O&M Expenses (1 Month)
0.00
0.00
0.00
0.00
0.00
Receivables (2 months)
23.63
23.85
24.69
24.70
24.70
Total
23.63
23.85
24.69
24.70
24.70
Rate of Interest on Working Capital
13.50%
13.50%
13.50%
13.50%
13.50%
Total Interest on Working Capital (Annualized)
3.19
3.22
3.33
3.33
3.33
Fee & Charges (2014-19) (Applicable)
State Portion - Charges
Particulars
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
Annual Capital Recovery Charge - Loan
86.91
87.72
90.87
90.87
90.88
Annual Capital Recovery Charge-Equity
51.71
52.17
53.97
53.97
53.97
Annual Capital Recovery Charge-Total
138.62
139.89
144.83
144.84
144.84
O&M Expenses
0.00
0.00
0.00
0.00
0.00
Interest on Working Capital
3.19
3.22
3.33
3.33
3.33
Total Fee & Charges (Applicable)
141.81
143.11
148.17
148.17
148.18
(Rs. in lakh)
Asset V - Central Portion
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
Depreciation
14.09
15.32
17.29
19.00
19.12
Interest on Loan
13.40
13.17
13.70
13.81
12.25
Return on Equity
13.09
14.30
16.14
17.74
17.90
Operation and Maintenance
9.61
12.86
4.38
7.10
4.61
Interest on Working Capital
1.47
1.70
1.33
1.56
1.39
Total
51.66
57.34
52.83
59.20
55.27
(Rs. in lakh)
Asset V - State Portion
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
Depreciation
112.98
143.06
165.36
165.89
166.65
Interest on Loan
107.79
122.73
128.41
113.73
99.57
Return on Equity
105.00
133.60
154.43
154.92
156.05
Operation and Maintenance
0.00
0.00
0.00
0.00
0.00
Interest on Working Capital
7.50
9.19
10.32
10.00
9.72
Total
333.26
408.59
458.52
444.55
431.99
f. The table under paragraph 57, in respect of Asset IV, is revised as follows:
(Rs. in lakh)
Assets
Sector
Total Capital Cost as on 31.3.2019
Additional Capitalization during 2019-2024 period
Capital Cost as on 31.3.2024.
Asset-I
Central Portion
832.85
0.00
832.85
State Portion
2087.50
0.00
2087.50
Asset-II
Central Portion
560.84
0.00
560.84
State Portion
3071.01
0.00
3071.01
Asset-III
Central Portion
502.25
0.00
502.25
State Portion
1569.26
0.00
1569.26
Asset-IV
Central Portion
344.30
0.00
344.30
State Portion
1040.39
0.00
1040.39
Asset-V
Central Portion
302.97
0.00
302.97
State Portion
2637.90
0.00
2637.90
g. The table under 59, in respect of Asset-IV, is revised as follows:
(Rs. in lakh)
Debt-Equity Ratio (as on 1.4.2019)
Funding
Asset-I
Asset-II
Asset-III
Asset-IV
Central Portion
State Portion
Central Portion
State Portion
Central Portion
State Portion
Central Portion
State Portion
Loan
583.00
1461.24
392.59
2149.70
351.57
1098.49
241.01
728.27
Equity
249.86
626.25
168.25
921.30
150.67
470.78
103.29
312.12
Total
832.85
2087.49
560.84
3071.00
502.24
1569.27
344.30
1040.39
Debt
70.00%
70.00%
70.00%
70.00%
70.00%
70.00%
70.00%
70.00%
Equity
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
Total
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
h. The tables under paragraph 63, in respect of Asset-IV, is revised as follows:
(Rs. in lakh)
Monthly capital recovery charges for loan
Particulars
2019-2020
2020-2021
2021-2022
2022-2023
2023-2024
Asset-I-Central Portion
5.94
5.94
5.94
5.94
5.94
Asset-I-State Portion
15.22
15.22
15.22
15.22
15.22
Asset-II-Central Portion
4.00
4.00
4.00
4.00
4.00
Asset-II - State Portion
22.30
22.30
22.30
22.30
22.30
Asset-III-Central Portion
3.56
3.56
3.56
3.56
3.56
Asset-III-State Portion
11.36
11.36
11.36
11.36
11.36
Asset-IV - Central Portion
2.38
2.38
2.38
2.38
2.38
Asset-IV-State Portion
7.51
7.51
7.51
7.44
7.44
(Rs. in lakh)
Monthly capital recovery charges for equity
Particulars
2019-2020
2020-2021
2021-2022
2022-2023
2023-2024
Asset-I - Central Portion
3.56
3.56
3.56
3.56
3.56
Asset-I - State Portion
9.01
9.01
9.01
9.01
9.01
Asset-II - Central Portion
2.41
2.41
2.41
2.41
2.41
Asset-II - State Portion
13.25
13.25
13.25
13.25
13.25
Asset-III - Central Portion
2.16
2.16
2.16
2.16
2.16
Asset-III - State Portion
6.78
6.78
6.78
6.78
6.78
Asset-IV - Central Portion
1.46
1.46
1.46
1.46
1.46
Asset-IV-State Portion
4.50
4.50
4.50
4.44
4.44
i. The table under paragraph 64, in respect of Asset-IV, is revised as follows:
(Rs. in lakh)
Particulars
Capital
Central Portion
State Portion
Asset-I: Capital Cost Recovered during 2019-2024
Loan
215.94
550.20
Equity
93.37
236.03
Total
309.32
786.23
Asset-II: Capital Cost Recovered during 2019-2024
Loan
137.16
754.69
Equity
56.31
309.12
Total
193.46
1063.81
Asset-III: Capital Cost Recovered during 2019-2024
Loan
119.78
378.32
Equity
48.44
152.24
Total
168.22
530.56
Asset-IV: Capital Cost Recovered during 2019-2024
Loan
76.73
243.49
Equity
30.34
95.69
Total
107.07
339.18
j. The table under paragraph 75, in respect of State Portion of Asset-IV, is revised as follows:
(Rs. in lakh)
Asset-IV State Portion
Particulars
2019-2020
2020-2021
2021-2022
2022-2023
2023-2024
Working Capital for O&M Expenses (O&M expenses for One month)
0.00
0.00
0.00
0.00
0.00
Working Capital for Maintenance Spares (15% of O&M expenses)
0.00
0.00
0.00
0.00
0.00
Working Capital for Receivables (Equivalent to 45 days of annual fixed cost/annual transmission charges)
17.98
18.01
17.99
17.81
17.81
Total Working Capital
17.98
18.01
17.99
17.81
17.81
Rate of Interest on Working Capital (in%)
12.05%
11.25%
10.50%
10.60%
10.60%
Interest on working capital
2.17
2.03
1.89
1.89
1.89
k. The table under paragraph 76, in respect of Asset IV - State Portion for 2019-2024 tariff period is revised as follows:
(Rs. in lakh)
Asset-IV-State Portion-Fees and charges
Particulars
2019-2020
2020-2021
2021-2022
2022-2023
2023-2024
Opening Gross Capital Cost
1040.39
1040.39
1040.39
1040.39
1040.39
Opening Gross Notional Loan
728.27
728.27
728.27
728.27
728.27
Opening Gross Equity
312.12
312.12
312.12
312.12
312.12
Recovered Gross Capital Cost (As on 1st April)
200.54
253.78
313.02
385.79
458.56
Recovered Gross Notional Loan
155.99
195.80
239.39
291.12
342.85
Recovered Gross Equity
44.56
57.98
73.63
94.67
115.70
Opening Net Capital Cost
839.85
786.61
727.37
654.60
581.83
Opening Net Notional Loan
572.29
532.47
488.89
437.15
385.42
Opening Net Equity
267.56
254.14
238.48
217.45
196.41
Recovered Capital Cost (During the Year)
53.24
59.24
72.77
72.77
81.16
Recovered Notional Loan
39.82
43.58
51.73
51.73
56.62
Recovered Equity
13.42
15.66
21.04
21.04
24.54
Closing Net Capital Cost
786.61
727.37
654.60
581.83
500.67
Closing Net Notional Loan
532.47
488.89
437.15
385.42
328.80
Closing Net Equity
254.14
238.48
217.45
196.41
171.87
Additional Capital Cost
0.00
0.00
0.00
0.00
0.00
Additional Notional Loan
0.00
0.00
0.00
0.00
0.00
Additional Equity
0.00
0.00
0.00
0.00
0.00
Years (Capital to be recovered up to 1.10.2018)
9.50
8.50
7.50
6.50
5.50
Months
114.00
102.00
90.00
78.00
66.00
Weighted Average Rate of Interest p.a.
9.067%
9.067%
9.067%
9.067%
9.067%
Weighted Average Rate of Interest p.m.
0.756%
0.756%
0.756%
0.756%
0.756%
Monthly Recovery Factors-Loan
0.013117
0.014097
0.015354
0.017014
0.019298
Monthly Capital Recovery Charge - Loan
7.51
7.51
7.51
7.44
7.44
Annual Capital Recovery Charge - Loan
90.08
90.08
90.08
89.25
89.25
Rate of Return on Equity p.a.
15.500%
15.500%
15.500%
15.500%
15.500%
Rate of Return on Equity p.m.
1.292%
1.292%
1.292%
1.292%
1.292%
Monthly Recovery Factors-Equity
0.016808
0.017696
0.018858
0.020421
0.022609
Monthly Capital Recovery Charge - Equity
4.50
4.50
4.50
4.44
4.44
Annual Capital Recovery Charge - Equity
53.97
53.97
53.97
53.29
53.29
Monthly Capital Recovery Charge - Total
12.00
12.00
12.00
11.88
11.88
Annual Capital Recovery Charge - Total
144.04
144.04
144.04
142.54
142.54
Fee & Charges (2019-24) (Pro-rata)
State Portion - Charges
Annual Capital Recovery Charge - Loan
90.08
90.08
90.08
89.25
89.25
Annual Capital Recovery Charge-Equity
53.97
53.97
53.97
53.29
53.29
Annual Capital Recovery Charge-Total
144.04
144.04
144.04
142.54
142.54
O&M Expenses
0.00
0.00
0.00
0.00
0.00
Interest on Working Capital
2.17
2.03
1.89
1.89
1.89
Total Fee & Charges (Pro-rata)
146.21
146.07
145.93
144.43
144.43
Interest on Working Capital
Maintenance Spares (15% of O&M)
0.00
0.00
0.00
0.00
0.00
O&M Expenses (1 Month)
0.00
0.00
0.00
0.00
0.00
Receivables (2 months)
17.98
18.01
17.99
17.81
17.81
Total
17.98
18.01
17.99
17.81
17.81
Rate of Interest on Working Capital
12.05%
11.25%
10.50%
10.60%
10.60%
Total Interest on Working Capital (Pro-rata)
2.17
2.03
1.89
1.89
1.89
Fee & Charges (2019-24) (Applicable)
State Portion - Charges
Particulars
2019-2020
2020-2021
2021-2022
2022-2023
2023-2024
Annual Capital Recovery Charge - Loan
90.08
90.08
90.08
89.25
89.25
Annual Capital Recovery Charge-Equity
53.97
53.97
53.97
53.29
53.29
Annual Capital Recovery Charge-Total
144.04
144.04
144.04
142.54
142.54
O&M Expenses
0.00
0.00
0.00
0.00
0.00
Interest on Working Capital
2.17
2.03
1.89
1.89
1.89
Total Fee & Charges (Applicable)
146.21
146.07
145.93
144.43
144.43
6. Except for the above, all other terms contained in the order dated 4.6.2022 in Petition No. 381/TT/2020 remains unchanged.