THE

JHARKHAND GAZETTE

EXTRAORDINARY

PUBLISHED BY AUTHORITY

21 Kartik, 1942 (S)

Ranchi, Thursday, 12^th November, 2020

JHARKHAND STATE ELECTRICITY REGULATORY COMMISSION,

RANCHI

JSERC (Levy and Collection of Fees and Charges by State Load Despatch Centre)

Regulations, 2020

No. 76-- In exercise of power under Section 181(2)(g) of the Act, the Jharkhand State Electricity

Regulatory Commission, hereby makes the JSERC (Levy and Collection of Fees and Charges by SLDC)

Regulations, 2020). A Regulationguided by the principles contained in Sections 61 and 62 of the Act to

encourageefficient functioning of SLDC, as the apex body to ensure efficient monitoringand integrated

operation of the power system in the State of Jharkhand.

CHAPTER I:

SCOPE, EXTENT AND DEFINITIONS

Short Title and Commencement

1.1

These Regulationsshall be called the Jharkhand State Electricity Regulatory Commission (Levy and

Collection of Fees and Charges by SLDC) Regulations, 2020.

1.2

These Regulations shall come into force for the period from April 01, 2021 to March 31, 2026, after its

publication in the Official Gazette of the Government of Jharkhand and unless reviewed earlier or

extended by the Commission, shall remain in force upto March 31, 2026.

1.3

These Regulations shall extend to the whole State of Jharkhand.

1.4

These Regulations shall supersede the Jharkhand State Electricity Regulatory Commission (Levy of

collection of fees and charges by SLDC) Regulations, 2010 read with all amendments thereto, as the

case may be.

Explanation:- For all purposes, including review matters pertaining to the period till March 31, 2021,

the issues relating to determination of Fees and Charges of SLDC shall be governed by the provisions of

the Jharkhand State Electricity Regulatory Commission (Levy of collection of fees and charges by

SLDC) Regulations, 2010, including amendments thereto, as may be applicable.

No. 571

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Scope of Regulations and Extent of Application

2.1

These Regulations shall be applicable for determination of fees and charges to be collected by State

Load Despatch Centre from the Generating Companies, Transmission Licensees, Distribution Licensees,

Open Access Consumers,Captive Generating Plants, Buyers, Sellers and any other users.

Definitions and Interpretation

3.1

In this Regulation unless the context otherwise requires:

1)

‘Accounting Statement’ means for each Financial Year:

i. The Balance Sheet, prepared in accordance with the form contained in the Companies Act, 2013

and its predecessors, as applicable;

ii. Cash Flow Statement, prepared in accordance with the applicable Accounting Standards of the

Institute of Chartered Accountants of India;

iii. Cost Accounting Records prescribed by the Central Government under Section 148 of the

Companies Act, 2013 and its predecessors, as applicable.

iv. Notes on accounts thereto, and such other supporting statements and information forming part

of financial statements or as the Commission may direct from time to time.

v. Profit and Loss Account, complying with the requirements contained in The Companies Act,

2013 and its predecessors, as applicable;

vi. Report of the Statutory Auditors, including any annexure and appendix thereto, as applicable;

vii. Any or all the formats as notified by the Commission under these Regulations for Tariff

Regulation including Multi Year Tariff Regulations pertinent to the relevant year.

viii. Reconciliation Statement, duly certified by the Statutory Auditors, showing the reconciliation

between the total expenses, revenue, assets and liabilities, of the entity as a Company and the

expenses, revenue, assets and liabilities, separately for each Business regulated by the

Commission and unregulated business operations.

Provided also that till the SLDC remains a part of JUSNL, separate Books of Accounts for SLDC

shall be maintained by the JUSNL and shall be Audited and Certified by the Statutory Auditor;

2)

‘Act’ means the Electricity Act, 2003 (36 of 2003) and subsequent amendments thereof;

3)

‘Additional Capitalisation’ means the capital expenditure incurred and capitalised or projectedto

be capitalised, after the date of commercial operation of the project and admitted by the

Commission after prudence check;

4)

‘Aggregate Revenue Requirement’ or ‘ARR’ means application for each year, the costs pertaining

to theState Load Despatch Centre Business which areadmissible, in accordance with these

Regulations, to be recovered in the form of feesand charges as determined by the Commission;

5)

‘Applicant’ means SLDC who has filed the Petition for determination of Fees and Charges or a

Petition for truing up or annual performance review in accordance with the Act and these

Regulations and includes SLDC whose Fees and Charges is subjected to review by the Commission;

6)

‘Auditor’ means an auditor appointed by the SLDC/JUSNL, in accordance with the provisions of the

Companies Act, 2013, as amended from time to time, or any other law for the time being in force;

7)

‘Bank Rate’means the one-yearMarginal Cost of Lending Rate (MCLR) of the State Bank of India

from time to time or any replacement thereof for the time being in effect;

8)

‘Base Year’ means the Financial Year 2020-21 and used for the purposes of these Regulations;

9)

‘Buyer’ means a person buying power through medium term or long-term accessand whose

scheduling, metering and energy accounting is coordinated by theState Load Despatch Centre;

10)

‘Capital Cost’ means the cost incurred in the schemes but not limited to the following:

i.

Supervisory control and data acquisition (SCADA) System, Wide Area Measurement System

(WAMS), Renewable Energy Management Centre (REMC), Weather Portal and other such

related information systems;

Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020 3

ii.

Computer systems, hardware and software, Cyber Security Systems, Multiple Video

conferencing facilities, Voice Recording Systems;

iii.

Ergonomically designed office furniture/equipment;

iv.

Auxiliary power supply system comprising Uninterrupted Power Supply, Diesel Generating Set

and DC power system;

v.

Communication system including redundant communication infrastructure – Satellite

communication in addition to conventional systems;

vi.

Other infrastructure facilities, such as air-conditioning, fire-fighting and construction and

renovation of buildings, roof-top solar units for energy efficiency etc.;

vii.

Any innovative schemes R&D projects and pilot projects for better system operation, such as

Synchro-phasors, System Protection Scheme;

viii.

Disaster Recovery (Main-I & Main-II) control centres for RLDCs and NLDC;

ix.

Surveillance System;

x.

Dual redundant internet connectivity for Web Servers of LDCs;

xi.

NMS (Network Management System) & Asset management tool for Network & IT Asset

Monitoring;

xii.

Market Management System Software;

xiii.

Cyber Security System infrastructure facilities such as Anti-APT (Advanced Persistent Threat)

monitoring, Vulnerability Assessment for Persistent Threat (VAPT)& control Device, Local Area

Network (LAN) Zone & Layer, Secure Sockets Layer (SSL) Certificate, SSL Virtual Private

Network (VPN) and Security Information & Event Management (SIEM);

xiv.

Infrastructure to ensure high availability of the Information Technology (IT) and Operational

Technology (OT) applications;

xv.

Redundant communication links / distribution path for IT / OT equipment

a.

Redundant site infrastructure – Disaster Recovery

b.

Multiple independent distribution path serving the equipment

c.

Dual powered and fully compatible with the site topology

d.

Cooling equipment dual powered including air-conditioning system

e.

Fault tolerant site infrastructure with electrical power storage, standby power

supply, distribution facility

f.

Physical access security needs to be ensured for IT – OT infrastructure with biometric

access, CCTV surveillance, fire alarm and firefighting system.

xvi.

Additional infrastructure facilities like “Digital Signature‟, “Instant Messaging for Business”,

“Centralized Patch Management and Antivirus server”, “Syslog Server” and Enterprise class

Backup and replication software” etc.;

xvii.

Future Technologies like Cloud Computing (e.g. PaaS (Platform as a Service), SaaS (Software as

a Service) and DaaS (Desktop as a Service) are available on Public Cloud,Private Cloud and

Hybrid Cloud), Big Data Analytics tools and Advanced data visualization tool (with GIS

interfacing) etc.;

xviii.

Ergonomically designed office equipment.

11)

‘Captive Generating Plant’means generating plant as defined in Electricity Act 2003;

12)

‘CERC’ means the Central Electricity Regulatory Commission;

13)

‘Charges’ means recurring payments on monthly basis to be collected from the Users by the

StateLoad Despatch Centre for the services rendered;

14)

‘Change in Law’ means occurrence of any of the following events:

(i)

the enactment, bringing into effect or promulgation of any new Indian Law; or

(ii)

adoption, amendment, modification, repeal or re-enactment of any existing

Indian law; or

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(iii)

change in interpretation or application of any Indian law by a competent court,

Tribunal or Indian Governmental Instrumentality which is the final authority

under law for such interpretation or application; or

(iv)

change by any competent statutory authority in any condition or covenant of any

consent, clearances or approval or licence available or obtained for the project;

or

(v)

coming into force or change in any bilateral or multilateral agreement/treaty

between the Government of India and any other Sovereign Government having

implication for the SLDC regulated under these Regulations;

15)

‘Commission’ means the Jharkhand State Electricity Regulatory Commission(JSERC);

16)

‘Contracted Capacity’ means the capacity arranged through long term or medium-termopen

access;

17)

‘Conduct of Business Regulations’ means the JSERC (Conduct of Business) Regulations 2016, as

amended from time to time;

18)

‘Control Period’ means a multi-year period fixed by the Commission, from April 01, 2021and up to

March 31, 2026;

19)

‘Day’ means the 24-hour period starting at 0000 hours;

20)

‘De-capitalization’ for the purpose of the tariff under these Regulations, means reduction in Gross

Fixed Assets of the project corresponding to the assets taken out of service;

21)

‘Expenditure Incurred’ means the fund, whether the equity or debt or both,actually deployed and

paid in cash or cash equivalent, for creation or acquisitionof a useful asset and does not include

commitments and the liabilities for whichno payment has been made;

22)

‘Fees’means the non-refundable one-time payment or payment in a defined periodicity collected

by

the

State

Load

Despatch

Centre,

for

the

servicesrenderedforcommencementofgridaccessandschedulingandonaccountof

registration,membershiporanyotherpurposeasspecifiedbytheCommissionfromtime to time;

23)

‘Financial Year’ means a period commencing on April 01 of a calendar year and ending on March

31 of the subsequent calendar year;

24)

‘Force Majeure Event’ means, with respect to any party, any event or circumstance, or

combination of events or circumstances, which is not within the reasonable control of, and is not

due to an act of omission or commission of that party and which, by the exercise of reasonable

care and diligence, could not have been prevented; and, without limiting the generality of the

foregoing, shall include the following events or circumstances:

(i)

acts of God, including but not limited to lightning, storm, action of the

elements, earthquakes, flood, torrential rains, drought and natural disaster or any

act of God beyond the control of any party or due to any restraint of the State

Government or Central Government or any other Statutory Authority;

(ii)

strikes and industrial disturbances having a State-wide or extensive impact in

the area of operation of SLDC, but excluding strikes and industrial disturbances

in the SLDC’s own organisation;

(iii)

acts of war, invasion, armed conflict or act of foreign enemy, insurrections,

riots, revolution, terrorist or military action;

(iv)

unavoidable accident, including but not limited to fire, explosion, radioactive

contamination and toxic chemical contamination;

(v)

any shutdown or interruption of the grid, which is required or directed by the

concerned Load Despatch Centre;

25)

‘Grid Access’means the permission granted by the concerned RLDC for integration of the

generating station including a stage or unit of the generating station including captive generating

stations, or licensees, buyers and sellers with the grid on meeting the technical requirements;

Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020 5

26)

‘Grid Code’ means the JSERC (Grid Code) Regulations, 2008, as amended or replaced from time to

time;

27)

‘Licensee’ means a person or a company granted a licence under Section 14 of the Act;

28)

‘Market Operation Function’ includes functions of scheduling, despatch,metering, data collection,

energy accounting and settlement, transmission losscalculation and apportionment, operation of

pool account and congestion chargeaccount, administering ancillary services, information

dissemination and anyother functions assigned to the State Load Despatch Centre by the

Electricity Act2003 or by JSERC Regulations and Orders;

29)

‘National Load Despatch Centre’ or‘NLDC’ means the Centre established under sub-section (1) of

Section 26 of theAct;

30)

‘Non-Tariff Income’ means the net income relating to the regulated Business other than from

SLDC Charges;

31)

‘Open

Access

Consumer’

meansanyLicenseeorConsumerorbuyerora

personengagedingenerationwhohasbeengrantedOpenAccessin accordance with the JSERC (Terms

and Conditions for Intra-State Open Access) Regulations, 2016, as amended from time to time;

32)

‘Prudence Check’ means scrutiny of reasonableness of any cost or expenditure incurred or

proposed to be incurred in accordance with these Regulations by the SLDC;

33)

‘Regional Load Despatch Centre’ or‘RLDC’ means the Centre established under sub-section (1) of

Section 27 of the Act;

34)

‘Seller’ means a person supplying power through medium term or long-term access and whose

scheduling, metering and energy accounting is coordinated by State Load Despatch Centre;

35)

‘State’ means the State of Jharkhand;

36)

‘State Load Despatch Centre’ or‘SLDC’means the Centre established under subsection (1) of

Section 31 of the Act;

37)

‘System Operation Function’ includes monitoring of grid operations, supervision and control over

the Intra-State Transmission System, real-time operations for grid control and Despatch, system

restoration following grid disturbances, compiling and furnishing data pertaining to system

operation, congestion management, black start coordination and any other function(s) assigned to

the State Load Despatch Centre by the Electricity Act 2003 or by JSERC Regulations and orders;

38)

‘State Transmission Utility’ or‘STU’ means the Board or the Government Company specified as

such by the State Government under sub-section (1) of Section 39 of the Act;

39)

‘Tariff Period’ shall mean the period from April 01, 2021and up to March 31, 2026, for which Tariff

isdetermined by the Commission under these Regulations;

40)

‘User’ means the generating companies, distribution licensees, buyers, Bulk consumers (SEZ),

sellers and open access consumers, captive generating stations, as the case may be, who use the

intra–state transmission network or the associated facilities and services of State Load Despatch

Centre;

41)

‘Year’ means a financial year;

3.2

Words and expressions used in these Regulations and not defined herein but defined in the Act shall

have the meanings respectively assigned to them in the Act.

3.3

Reference to any Act, Rules and Regulations shall include amendment or consolidation or re-

enactment thereof.

3.4

All proceedings under these Regulations shall be governed by the JSERC (Conduct of Business)

Regulations,

2016,

asamended

or

re-enacted

from

time

to

time.

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Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020

State Load Despatch Centre

General

4.1

The State Load Despatch Centre shall be a Centre established by the State Government to be operated

by a Government company or any Authority or Corporation established or constituted by or under the

State Act, as may be notified by the State Government.

Provided that until a State Government notify or any authority or corporation is notified by the State

Government, the State Transmission Utility shall operate the State Load Despatch Centre:

Provided further that no State Load Despatch Centre shall engage in the business of trading in

electricity.

Registration

4.2

The users shall register through application with the State Load Despatch Centre (SLDC) for

commencement of Grid Access for availing system operation services of SLDC as under:

a.

All generating stations, distribution licensees, intra-State transmission licensees or any other

user defined under Clause 3.1of these Regulations intending to avail theGrid Access shall

register themselves with State Load Despatch Centreresponsible for scheduling, metering,

energy accounting and switching operations, notless than 30 days prior to intended date of

commencement of Grid access, by filing anapplication in the format prescribed as Appendix-II

to these Regulations;

Provided that when a unit is added to a generating station or an element is addedto a

transmission system, the generating company or transmission licensee, as the casemay be,

shall send an intimation to the SLDC within two days of suchaddition for updating its records;

b.

The Power exchanges and traders who intend to avail the services of SLDC shall register

themselves with the SLDC by filing an application in the format prescribed as Appendix-II to

these Regulations.

4.3

The application for registration shall be accompanied by a one-time fee of Rs. 2 Lakh either through

cheque or demand draft. The existing users shall register themselves with the SLDC by filing an

application along with the fees of Rs. 2 Lakh within a month of coming into force of these Regulations.

4.4

Upon submission of the application for registration, acknowledgement forreceipt of application shall

be issued by the SLDCpromptly.

4.5

After scrutiny, SLDC shall intimate the deficiencies in the application, if any, to theapplicant within one

week of receipt of application. The applicant shall rectify the deficiencywithin one week thereafter,

failing which the application shall be closed.

4.6

The SLDC, after scrutinizing applications for registrationand on being satisfied with correctness of the

information furnished in the application shallregister the applicant and send a written intimation to

the applicant.

4.7

SLDC shall maintain a list of registered users on its website along with their date of registration.

Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020 7

4.8

SLDC may, after issuing notice of at least one month, de-register a user in case ofpersistent default in

payment of SLDC Fees and Charges for more than 90 days ortermination of connectivity. A user can

subsequently re-register once the default has beencured or connectivity re-established by paying 50%

of the original registration charges.

Functions, Duties and Obligations of SLDC

4.9

In discharge of functions, obligations and duties under Section 32 and Section 33 of the Act, the State

Load Dispatch Centre shall comply with the relevantprovisions of the Act and Regulations of the

Commission.

4.10

The SLDC shall not give any preferential treatment to any of the Open Access Consumers.

4.11

The State Load Despatch Centre shall upload on its website as well as submit the following reports to

the Commission:

a.

Monthly Energy Accounting Statement indicating source-wise input andDiscom/Open Access

Consumer wise output of energy;

b.

The reports on its operation as specified in

i.

Commission’s various Orders on Generation Tariff and Transmission Tariff;

ii.

Or other Regulations.

Prohibited Activities

4.12

State Load Despatch Centre shall not engage in the business of trading in electricity.

Accounts of SLDC

4.13

Unless otherwise permitted by the Commission the financial year shall be from first (1^st) April to the

following thirty-first (31^st) March.

4.14

From the date the SLDC is established by the Government of Jharkhand under Section 31 of the

Electricity Act, 2003, SLDC shall maintain its financial accounts separately.

Provided that till the time SLDC remains a part of JUSNL, separate Books of Accounts for SLDC

shall be maintained by the JUSNL and shall be Audited and Certified by the Statutory Auditor;

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Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020

CHAPTER II:

TARIFF FRAMEWORK AND GUIDING PRINCIPLES

MYT Framework

5.1

The MYT Framework shall commence from April 01, 2021 and unless reviewed earlier or extended by

the Commission, shall be applicable till March 31, 2026. The ARR filings for the Control Period shall be

done in accordance with the MYT framework contained in these Regulations.

5.2

The SLDC shall file MYT Application along with supporting documents before the Commission as per

the timelines specified in Section0of these Regulations.

5.3

The MYT Application shall include statements containing ARR along with its break up for the Years of

the previous Control Period based on Audited Accounts for FY 2015-16 to FY 2019-20, segregated

amongst Transmission and SLDC Businesses, revised estimates for Base Year FY 2020-21, and

projections for each year of the Control Period.

Provided that in case the Audited Accounts are not segregated, SLDC shall file MYT Application

on the basis of allocation of the assets/expenses/Revenue between Transmission Business and SLDC

Business based on the audited statements/Trial Balance.

5.4

The Guiding Principles for MYT Framework are described in Section 0of these Regulations.

5.5

The principles for determination of ARR for the Control Period is described in Chapter III of these

Regulations and the procedure for Annual Filing during the Control Period is described in Chapter IV of

these Regulations.

Guiding Principles for MYT Framework

6.1

The Commission shall adopt Multi Year Tariff Framework for approval of ARR andexpected revenue

from fees and charges. The ARRshall bedetermined for each year of the Control Period.

6.2

The Multi Year Tariff framework shall be based on the following:

a.

Business Plan of the SLDC for the entireControl Period shall be filed before the Commission

for approval, along with MYT Petition prior to the start of the Control Period or within such

period as the Commission may direct;

b.

Applicant’s forecast of expected ARR for each year of the Control Period, along with the

forecast of expected fees and charges for each year of the ControlPeriod, based on reasonable

assumptionlaid down under these Regulations, andon the basis of the Business Plan;

c.

Trajectory for specific parameters shall be stipulated by the Commission, where the

performance of the Applicant is sought to be improved through incentives and disincentives;

d.

Annual Review of performance shall be conducted vis-à-vis the approved forecast and the

fees and charges shall be revised based on submissions made by the Petitioner during the

Annual Review.

Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020 9

e.

Mechanism for sharing approved gains or losses on account of controllable and

uncontrollable factors.

Determination of Baseline

6.3

The values for the Base Year of the Control Period shall be determined based on theaudited accounts

availablefor FY 2015-16 to FY 2019-20.In the absence of audited accounts of any such year, the

Commission may consider best estimate for such years after carrying out due, prudence check and

after taking into account other factors as considered relevant by the Commission.

6.4

The Commission shall normally not revise the performance targets during the Control Period, unless

the Commission is of the view that there is a major variation in approved numbers vis-à-vis actuals.

Business Plan

6.5

The SLDC shall file for the Commission’sapproval, a Business Plan approved by the Board of Directors,

as per the timelinesspecified in Section 0of these Regulations.

6.6

The Business Plan shall be for theentire Control Period and shall, interalia, contain:

a.

Capital InvestmentPlan:This should be commensurate with infrastructure requirement and

quality improvement proposed and to ensure efficient work and integrated operation of the

power system in the State of Jharkhand. The Capital expenditure plan should also

includecorresponding capitalisation schedule and financing plan;

SLDC shall also submit scheme-wise capital structure and cost of financing (interest on debt)

and return on equity, Grant, Deposit Works along with terms of the existing loan agreements,

etc., as a part of Capital Investment Plan;

b.

The appropriate capital structure and cost of financing (interest on debt) and returnon

equity, terms of the existing loan agreements, etc;

c.

Human Resource Plan: This shall include, designation-wise existing man power, details of the

estimated year wise manpower addition and retirements for the Control Period to meet its

responsibilities and obligations as an SLDC;

d.

A set of targets proposed for other controllable items such as return on equity, depreciation,

working capital requirement, performance targets, Employee, R&M and A&G Expenses etc.,

along with detailed break up and any other information used for preparing projections of

various performance parameters and other components during the Control Period.

e.

Other Information: This shall include any other details considered appropriateby the SLDC

for consideration duringdetermination of fees and charges.

Capital Investment Plan

6.7

The Commission may approve the Capital Investment Plan after carrying out due Prudence Check of

the plan submitted by the SLDC, based on the load growth forecast during the Control Period. The

same would be considered for computation of ARR, wherein the amount of electricity handled by the

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Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020

SLDC shall be projected considering the estimated growth plan of its Beneficiaries and any plans of

new transmission system, based on network expansion plans within the State.

6.8

Capital Investment plan submitted by the SLDC shall also provide details of ongoing projects that will

spill into the Control Period and new projects that will commence during the Control Period but may

extend beyond the Control Period.

6.9

The Capital Investment Plan shall be in conformity with the plans made by the STU and with the capital

investment plans of the Distribution Licensees and the Generating Companies. The CAPEX plan shall

inter-alia include:

a.

Purpose of investment;

b.

Approval of Competent Authority;

c.

Detailed Project Report;

d.

Capital Structure;

e.

Capitalization Schedule;

f.

Implementation schedule including timelines;

g.

Financing Plan;

h.

Cost-benefit analysis and Rate reasonability;

i.

Improvement in operational efficiency envisaged in the Control Period.

6.10

During the Annual Performance Review, the Commission shall monitor the year-wise-progress of the

actual capital expenditure incurred by the SLDC vis-à-vis approved capital expenditure. The SLDC shall

submit the actual capital expenditure incurred and capitalisation during the year under review along

with the Annual Performance Review Filing.

6.11

The Commission shall review the actual capitalisation at the end of each year of the Control Period vis-

à-vis the approved capitalisation schedule.

Provided that the actual capital expenditure incurred shall be only for the schemes as per the

approved CAPEX plan.

6.12

In case the capital expenditure is required for emergency work which has not been approved in the

Capex plan, the SLDC shall submit a petition (containing all relevant information along with reasons

justifying emergency nature of the proposed work seeking approval by the Commission wherever

possible. The SLDC may however, take up the work prior to the approval of the Commission provided

that the emergency nature of the scheme has been certified by the Board of Directors provided that

the SLDC gets the same approved by the Commission at the earliest.

Controllable & Uncontrollable Parameters

6.13

The ‘Controllable Parameters’ shall comprise but not be limited to the following parameters, which are

within the control of, and are attributable to the applicant:

1) Capital Expenditure and additional capitalization

2) Interest & Finance Charges

3) Return on Equity

4) Depreciation

Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020 11

5) Interest on working capital

6) Operation and Maintenance expenses

6.14

The ‘Uncontrollable Parameters’ shall comprise but not limited to the following factors, which are

beyond the control of the applicant:

1) Terminal Liabilities of Employees

2) Foreign Exchange Rate Variations

3) Taxes and duties

4) Non-Tariff Income

6.15

The variation on account of uncontrollable parameters shall be treated as a pass through to be

ultimately charged to the Users, subject to prudence check and approval by the Commission.

6.16

The Commission shall also permit pass-through of variations in controllable items on account of Force

Majeure events and due to Change in Law event(s) in the ARR, based on the submission of actual

values by the SLDC and subsequent validation and approval by the Commission.

6.17

The variation from targets specified by the Commission on account of controllable parameters shall be

subject to incentive and penalty framework, as detailed in the subsequent section.

Incentive and Penalty Framework

6.18

Certain elements of the ARR of the SLDC will be subject to incentive and penalty framework as per the

terms specified in this section. The overall aim shall be to incentivise better performance and penalise

poor performance, compared to the performance norms/benchmarks specified by the Commission.

6.19

The gains/losses shall be computed on aggregate basis Operation & Maintenance Expenses (excluding

Terminal Liabilities) considered collectively on annual basis. The computations shall be based on the

data submitted by the SLDC in the Annual Performance Review and Audited Annual Accounts and shall

be subject to prudence check by the Commission.

6.20

In case of aggregate gains, the aggregate gain shall be shared between the SLDC and the Users in the

ratio of 50:50 respectively.

6.21

The gains to be shared shall be passed on to the consumers through Tariff during the Annual

Performance Review for each year of the Control Period.

6.22

In case of any loss on account of underperformance with respect to the controllable parameters, the

SLDC shall bear the entire losses and no proportion of losses shall be passed on to the Users.

6.23

In addition, the net savings due to refinancing of Loans by the SLDC shall be shared between the Users

and the SLDC, as the case may be, in the ratio of 50:50.

Truing-up

7.1

The SLDC shall submit along with the application for truing up, details of capital expenditure including

additional capital expenditure, sources of financing, human resource expenditure, operation and

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Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020

maintenance expenditure, etc incurred for each year of the ControlPeriod, true up duly audited and

certified by the auditors during the control period for true up as per the Timelines stipulated in the

Section 0.

7.2

Where after the truing up, the revenue recovered exceeds the ARR approved by the Commission

under these Regulations, the SLDC shall refund to the users, as the case may be, the surplus amount so

recovered as specified in Clause 7.4 of these Regulations.

7.3

Where after the truing up, the revenue recovered is less than the ARR approved by the Commission

under these Regulations,the SLDC shall recover from the users, as the case may be, the gap amount in

accordance with Clause 7.4 of these Regulations.

7.4

The amount under-recovered or over-recovered, along with interest at the rate equal to Bank Rate as

on April 01 of the respective year plus 350 basis points, shall be recovered or refunded by SLDC, in six

equal monthly instalments starting within three months from the date of the Tariff Order issued by the

Commission:

Provided that no carrying cost on the duration of delay shall be allowed on unrecovered gap

ifSLDC fails to submit the Petitions as per the timelines stipulated in Section 0.

Provided further that any adverse financial impact on account of variation in uncontrollable

items due to lapse on part of SLDC or its suppliers/contractors shall not be allowed in truing up;

Annual Performance Review and Determination of Fees & Charges

8.1

The SLDC shall submit along with the application for Annual Performance Review, details of capital

expenditure including additional capital expenditure, sources of financing, operation and maintenance

expenditure, etc incurred for the year under review, as per the Timelines stipulated in Section 0.

8.2

Along with Annual Performance Review Filing, the SLDC shall also claim revised ARR for the following

year based on the truing up and annual performance review of the previous year(s).

8.3

The Scope of the Annual Performance Review shall be comparison of the

approved expenses vis-à-vis revised estimates for the year/s and shall comprise the following:

(1)

Comparison of Approved Capital Expenditure and Capitalisation vis-à-vis

revised estimates by the SLDC based on the latest actual data available;

(2)

Comparison of Other Expenses such as Interest on Loan, Interest on Working

Capital, Return on Equity, Depreciation and O&M Expenses approved by the

Commission vis-à-vis the revised estimates by the SLDC based on the latest actual data

available;

(3)

Approved Revenue vis-à-vis revised estimates based on the latest actual data

available;

(4)

Any other Expenses/Revenues impacting ARR.

8.4

Provided that the Commission may consider any new scheme proposed on

merits subject to prudence check as per this Tariff Regulation.

Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020 13

8.5

The SLDC may, as a result of additional information not previously known or

available to them at the time the forecast was developed, apply for a modification in the

approved forecast of ARR as part of the Annual Performance Review.

8.6

The Commission if, as a result of additional information not previously known or

available to it at the time the forecast was developed, is of the view that the same may result in

significant over/under recovery, either suo-motu or on an application made by any interested or

affected party, modify the approved forecast of ARR for the remainder of the Control Period,

as part of the Annual Performance Review.

8.7

Based on the analysis of Annual Performance Review and Truing up, the Commission, may revise the

ARR,

SLDC

Fees

and

Charges

for

the

ensuing

year

of

the

Control

Period.

14

Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020

CHAPTER III:

DETERMINATION OF TARIFF

Principles for Determination of Tariff

9.1

The Transmission Licensee shall segregate its accounts into SLDC activity and Transmission Business

not later than March 31, 2021. Till the time there is a complete segregation of accounts between

Transmission Business and SLDC activity, the Transmission Licensee shall allocate the assets/expenses

between Transmission Business and SLDC Business based on the audited statements/Trail Balance. The

SLDC shall file its Business Plan and MYT Petition, based on bifurcation/Allocation Statement duly

approved by the Board of the Transmission Licensee/SLDC, containing the apportionment of all costs,

revenues, assets, liabilities, reserves and provisions between the Transmission Business, SLDC activity

and any Other Business or the Segregated Audited Accounts as certified by the Statutory Auditor. The

Allocation Statement/Audited Accounts shall also contain the methodology used for the

apportionment between different businesses as specified in the JSERC (Power Regulatory Accounting)

Regulations, 2016, and its amendments thereof.

Capital Cost

9.2

The capital cost as admitted by the Commission after prudence check for the SLDC shall form the basis

for determination of annual charges.

9.3

The capital cost shall be computed in the following manner:

i.

The Capital Cost as admitted by the Commission based on the submission made by the SLDC

for the Base Year based on its Annual Accounts excluding undischarged liability, if any;

ii.

Expenditure on account of Additional Capitalization determined in accordance with the Clause

6.7;

iii.

The fixed assets which have been replaced during Control Period shall be de-capitalized;

iv.

Interest During Construction on actual loans and Incidental Expenditure During Construction;

v.

Any grant received from the Central or State Government or any Statutory Body orAuthority

for execution of the project which does not carry any liability ofrepayment shall be excluded

from the Capital Cost for the purpose of computationof interest on loan, return on equity and

depreciation.

9.4

The Capital Cost shall be admitted after prudence check which may include scrutiny of

thereasonableness of the Capital Expenditure, Financing Plan, Interest During Construction

(IDC),Incidental Expenditure During Construction (IEDC), Financing Charges, any gain or loss onaccount

of Foreign Exchange Rate Variation (FERV), cost over-run and time over-run andsuch other matters as

may be considered appropriate by the Commission:

Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020 15

Provided that Interest During Construction shall be computed corresponding to the loanfrom the date

of infusion of debt fund, and after taking into account the prudent phasing offunds duly adjusting IDC

on account of time overrun if any:

Provided further that Incidental Expenditure During Construction shall be computed afterprudence

check duly adjusting the IEDC on account of time over run, if any, interest ondeposits or advances, or

any other receipts and liquidated damages recovered orrecoverable corresponding to the delay.

9.5

SLDC shall submit the Auditor’s Certificate for the Capital Expenditure incurred as on April 01, 2020

anda Management Certificate duly signed by an authorised person, not below the levelof Director of

the Company, for the projected Capital Expenditure for respective years of the Control Period:

Provided that the value of the assets not in use shall not form part of the Capital Cost.

Additional Capitalisation

9.6

The capital expenditure capitalised or projected to be capitalised for the assets already in service and

the additional assets projected to be procured during tariff period may be admitted, by the

Commission, subject to prudence check.

9.7

In case of de-capitalization of assets replaced or otherwise, the original cost of such asset as on the

date of de-capitalization duly certified by its Statutory Auditor shall be deducted from the value of

gross fixed asset along with corresponding adjustment in equity, outstanding loan, cumulative

repayment of loan and depreciation in the year such de-capitalization takes place with corresponding

adjustments in cumulative depreciation and cumulative repayment of loan shall be carried out duly

taking into consideration the year in which it was capitalised.

Debt-Equity ratio

9.8

The Commission shall consider the normative debt equity ratio of the capital incurred as 70:30 for

determination of tariff.

9.9

In case the equity actually deployed is more than 30% of the capital cost, equity in excess of 30% shall

be treated as normative loan:

Provided that where equity actually deployed is less than 30% of the capital cost, the actual equity

shall be considered for determination of charges:

Provided further that the equity invested in foreign currency shall be designated in Indian Rupees on

the date of each investment.

Computation of Annual Charges

10.1

The annual charges of SLDC shall contain but not limited to the following items:

a.

Return on equity;

b.

Interest on loan;

c.

Depreciation;

d.

Operation &Maintenance Expenses;

16

Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020

e.

Interest on Working Capital; and

f.

Non-Tariff Income.

Return on Equity

10.2

Return on equity shall be computed on equity base determined inaccordance with Clauses

9.8and9.9of these Regulations.

10.3

Return on equity shall be computed on post-tax base rate of 14.00% for the Control Period:

Provided that the return on equity shall be allowed only on the equity employed on assets which are

commissioned and are in use.

Income Tax

10.4

Tax on income, if any, on the Scheduling and Market Operation Business of the SLDC shall be limited to

tax on the allowed return on equity.

10.5

The income tax actually payable or paid limited to the tax on allowed return on equity shall be

included in the ARR while truing up. The actual assessment of income tax should take into account

benefits of tax holiday, and the credit for carry forward losses applicable as per the provisions of the

Income Tax Act, 1961 and its amendments thereof shall be passed on to the Users. Tax on the other

income streams of the SLDC shall not be recovered from the Users.

Interest on Loan Capital

10.6

The loans arrived at in the manner indicated in Clauses 9.8and 9.9of these Regulations shall

beconsidered as gross normative loan for calculation of interest on loan.

10.7

The normative loan outstanding as on April 01, 2021 shall be workedout by deducting the cumulative

repayment as admitted by the Commission up toMarch 31, 2021from the gross normative loan.

10.8

The repayment for the year of the Control Period shall be deemed to be equal tothe depreciation

allowed for that financial year.

10.9

In case of de-capitalization of assets, the repayment shall be adjusted by taking into account

cumulative repayment on pro-rata basis and the adjustment should not exceed cumulative

depreciation recovered up to the date of de-capitalization of such assets.

10.10 Notwithstanding any moratorium period availed by the SLDC, the repayment of loan shall be

considered from the first year of operation of the scheme.

10.11 The rate of interest shall be the weighted average rate of interest calculated on thebasis of the actual

loan portfolio at the beginning of each year applicable to theSLDC:

Provided that if there is no actual loan for a particular year but normative loan is stilloutstanding, then

the rate of interest shall be considered on normative basis and shall be equal to Bank Rate as on April

01 of the respective year of the Control Period plus 200 basis points.

Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020 17

10.12 The interest on loan shall be calculated on the normative average loan of the year byapplying the

weighted average rate of interest.

10.13 The above interest computation shall exclude interest on loan amount, normative or otherwise, to the

extent of capital cost funded by any capital subsidy/grant.

10.14 The SLDC shall make every effort to re-finance the loanas long as it results in net savings on interest

and in that event the costs associatedwith such re-financing shall be borne by the users and the net

savings shall be sharedbetween the users and the SLDC, as the case may be, inthe ratio of 50:50.

Depreciation

10.15 Depreciation shall be calculated every year on the amount of original cost of the fixed assets as

admitted by the Commission:

Provided that depreciation shall not be allowed on assets funded by any capital subsidy /grant.

10.16 Depreciation for each year shall be determined based on the methodology as specified in these

Regulations along with the rates and other terms specified in these Regulations.

10.17 Depreciation shall be calculated annually based on ‘Straight Line Method’ and at rates as specified in

Appendix-I to these Regulations.

Provided that the SLDC shall ensure that once the individual asset is depreciated to the extent of

seventy (70) percent of the Book Value of that asset, remaining depreciable value as on March 31 of

the year closing shall be spread over the balance useful life of the asset.

10.18 Depreciation shall be charged from the first year of commercial operation of the asset. In case, the

operation of the asset is for a part of the year, depreciation shall be charged on a pro-rata basis.

10.19 The residual value of the asset (excluding IT equipmentand Software) shall beconsidered as 10% and

depreciation shall be allowed up to maximum of 90% of thecapital cost of the asset. Land is not a

depreciable asset and its cost shall be excluded while computing 90% of the original cost of the asset.

Provided that the salvage value for IT equipment and software shall be considered as NIL and 100%

value of the assets shall be considered depreciable;

10.20 Assets fully depreciated shall be shown separately. Value of the assets not in use ordeclared obsolete

shall be taken out from the capital cost for the purpose ofcalculation of depreciation.

10.21 The balance depreciable value as on the date of transfer shall be worked out bydeducting the

cumulative depreciation from the gross depreciable value of the assetsappearing in the books of

accounts of the State Transmission Utility for theSLDC as on the date of transfer.

10.22 In case of de-capitalization of assets, the cumulative depreciation shall be adjusted by taking into

account the depreciation recovered through tariff corresponding to the decapitalised asset during its

useful services.

Operation and Maintenance Expenses

10.23 Operation and Maintenance (O&M) expenses shall comprise of the following:

a.

Salaries, wages, pension contribution and other employee costs;

18

Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020

b.

Administrative and General costs;

c.

Repairs and maintenance expenses;

10.24 The SLDC shall submit details on O&M expenses as required by the Commission. The O&M expenses

for the Base Year shall be approved by the Commission taking into account the audited accounts of FY

2015-16 to FY 2019-20, business plan filed by the SLDC, estimates of the actuals for the Base Year,

prudence check and any other factor considered appropriate by the Commission.

10.25 O&M expenses permissible towards ARR for each year of the Control Period shall bedetermined using

the formula detailed below:

O&Mn = (R&Mn + EMPn + A&Gn) + Terminal liabilities

Where,

R&Mn – Repair and Maintenance Costs of the Licensee for the n^th year;

EMPn – Employee Costs of the Licensee for the n^th year excluding terminal liabilities;

A&Gn – Administrative and General Costs of the Licensee for the n^th year.

10.26 The above components shall be computed in the manner specified below:

a) R&Mn = K*GFA* (INDXn / INDXn-1)

Where,

‘K’ is a constant (expressed in %) governing the relationship between R&M costs

and Gross Fixed Assets (GFA) and will be calculated based on the % of R&M to

GFA of the preceding year of the Base Year after normalising any abnormal

expenses;

‘GFA’ is the opening value of the gross fixed asset of the nth year;

b)

EMPn + A&Gn = [(EMPn-1) * (1+Gn) + (A&Gn-1)] * (INDXn / INDXn-1)

Where,

EMPn-1 – Employee Costs of the Licensee for the (n-1)^th year excluding terminal

liabilities;

A&Gn-1 – Administrative and General Costs of the Licensee for the (n-1)^th year

excluding legal/litigation expenses;

INDXn – Inflation factor to be used for indexing the employee cost and A&G cost.

This will be a combination of the Consumer Price Index (CPI) and the Wholesale

Price Index (WPI) for immediately preceding year before the base year;

Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020 19

Gn – is a growth factor for the n^th year and it can be greater than or lesser than zero

based on the actual performance. Value of Gn shall be determined by the

Commission in the MYT Order for meeting the additional manpower requirement

based on the SLDC’s Filing, benchmarking and any other factor that the

Commission feels appropriate;

c)

INDXn = 0.55*CPIn +0.45*WPIn;

Note 1: For the purpose of estimation, the same INDXn/ INDXn-1value shall be used for allyears of the

control period. However, the Commission will consider the actual valuesin the INDXn/ INDXn-1 at the

end of each year during the Annual Performance Review exerciseand true up the employee cost and

A&G expenses on account of this variation, for theControl Period;

Note 2: Any variation due to changes recommended by the Pay Commission, wage revision

agreement, etc willbe considered separately by the Commission.

Note 3: Terminal Liabilities will be approved as per actual submitted by the SLDC along with

documentary evidence such asactuarial studies.

10.27 The SLDC, in addition to the above details shall also submit the detailed break-up of the

Legal/Litigation Expenses for the previous Years (FY 2015-16 to FY 2019-20) along with the details and

documentary evidence of incurring such expenses. The Commission shall approve the legal expenses

as per the relevant provisions of the Jharkhand State Litigation Policy based on the necessary

documentary evidence submitted for the Control Period and shall carry out due prudence check of

legal expenses at the time of truing up.

Interest on Working Capital

10.28 The Commission shall determine the Working Capital requirement containing the following

components:

a.

Operation and Maintenance expenses for one month;

b.

Receivables equivalent to 45 days of annual fixed cost; and

c.

Less: Interest on amount, if any, held as security deposits from theUsers.

10.29 Rate of interest on working capital shall be equal to the Bank Rate as on September 30 of the financial

year in which the MYT Petition is filed plus 350 basis points. At the time of true up, the interest rate

shall be adjusted as per the actual rate prevailing on April 01 of the financial year for which truing up

exercise has been undertaken.

10.30 The interest on working capital shall be payable on normative basis notwithstanding that the SLDC has

not taken working capital loan from any outside agency.

Non-Tariff Income

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Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020

10.31 The Commission in its MYT/Tariff Orders shall specify the manner in which non tariff income shall be

accounted. The Commission may either deduct the same from the ARR or consider such revenue to

fund capitalisation schemes.

Provided that in case the Commission allocates such income towards funding of capex schemes, no

cost of capital (i.e., Interest on Loan or RoE) and depreciation shall be allowed to SLDC on Assets

funded from such funds.

Provided further that the SLDC shall submit full details of its forecast of Non-Tariff Income to the

Commission in such form as may be stipulated by the Commission.

10.32 The Non-Tariff Income shall include:

1. Income from rent of land or buildings;

2. Income from sale of scrap;

3. Income from investments;

4. Interest accrued on advances to suppliers/contractors;

5. Interest income on loans / advances to employees;

6. Income from rental of staff quarters;

7. Income by rental from contractors;

8. Income by hire charges from contactors and others;

9. Income by supervision charges, etc.;

10. Supervision charges for capital works;

11. Income from advertisements;

12. Income from sale of tender documents;

13. Income from Registration Fees;

14. Profit from sale of assets, i.e. difference of Sale value & Book value;

15. Any other Non-Tariff Income:

Provided that the interest earned from investments made out of return on equity corresponding to

the Scheduling and System Operation Business of the SLDC shall not be included in Non-Tariff Income.

Provided that the onus to substantiate, to the satisfaction of the Commission, that such investments

have been out of Return on Equity shall be on the SLDC.

Levy and Collection of Fees and Charges

11.1

The SLDC Fees and Charges shall comprise State Load Despatch Centre Fees to be recoverable by SLDC

towards registration for commencement of grid access and scheduling and annual charges to be

collected in the form of Annual LDC Charges from users.

11.2

The Annual SLDC Charges shall correspond to the expenditure proposed to be incurred by the SLDC

and as approved by the Commission. The Annual LDC Charges (ALC) as approved by the Commission

shall be recovered on monthly basis.

11.3

The Monthly SLDC Charges shall be collected from the users as per the norms givenbelow:

Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020 21

Monthly LDC Charges=Annual LDC Charges/12/(Total Contracted Capacity)

Where,

Monthly LDC Charges is in Rs./MW/month

Annual LDC Charges is in Rs. (as approved by the Commission)

Total Contracted Capacity is the sum of the Average Transmission Capacity Contracted by the users

during the month (in MW).

Billing

12.1

Bills shall be raised for the SLDC Charge onmonthly basis by the SLDC in accordance withthese

Regulations, and payments shall be made by the users directly to the SLDC.

12.2

Persistent default in payment of SLDC fees and charges would be brought to the noticeof the

Commission.

12.3

In case the payment of any bill for charges payable under these Regulations is delayed by a User

beyond a period of 60 days from the date of billing, a late payment surcharge shall be levied by the

SLDC at the Bank Rate as on April 01 of the respective year plus 500 basis points shall be applicable for

the first month, and for every month or part thereof delay, the rate of late payment surcharge shall

increase by 50 basis points, subject to a maximum of Bank Rate as on April 01 of the respective year

plus 700 basis points.

12.4

For payment of bills by the Users (Capacity Charge and Energy Charges) within 5 days of presentation

of bills by the SLDC, a rebate of 2.00% shall be allowed.

Note: In case of computation of 5 days, the number of days shall be counted consecutively without

considering any holiday. However, in case the last day or 5^th day is official holiday, the 5^th day for the

purpose of Rebate shall be construed as the immediate succeeding working day (as per the official

State Government’s calendar, where the Office of the Authorized Signatory or Representative of the

Beneficiary, for the purpose of receipt or acknowledgement of Bill is situated).

22

Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020

CHAPTER IV:

PROCEDURE FOR FILING OF ARR

Multi Year Tariff Filing Procedure

13.1

The Multi Year Tariff filing shall be in such form and in such manner as may be decided by the

Commission and as per the provisions of JSERC (Conduct of Business) Regulations, 2016, as amended

or re-enacted from time to time.

13.2

The SLDC shall also submit the Multi Year Tariff filing in electronic format to the Commission.

13.3

The SLDC shall file the MYT Petition for the Fees and Charges to be applicable for the Control Period in

accordance with the MYT framework andthe timelinesspecified in Section 0 of these Regulations

failing which:

(a) The Commission may issue the MYT order suo-motu;

(b) The Commission may disallow the return on equity to the SLDC.

Before the Start of the Control Period

13.4

The SLDC shall file for the Commission’s approval, as per the Timelines specified in Section 0, a

Business Plan and MYT Petition in accordance with Clause 6.2 of these Regulations.

Annual Tariff Filings for the Control Period

13.5

The SLDC shall file a Petition for approval of Fees and Charges for each year of the Control Period, as

per the timelines specified in Section 0of these Regulations, before the commencement of each year

of the Control Period.

Disposal of Application

14.1

The Commission shall process the filings made by the SLDC in accordance with these Regulations and

the JSERC (Conduct of Business) Regulations, 2016, as amended from time to time.

14.2

Based on the SLDC filings, objections/suggestions from public and other stakeholders, the Commission

may accept theapplication with such modifications and/or such conditions as may be deemed just

andappropriate and issue, within 120 days of the receipt of the application and afterconsidering all

suggestions and objections from public and other stakeholders, anOrder containing inter alia, trued up

cost components for the year preceding the BaseYear, estimation of parameters for the Base Year and

determination of fees andcharges for the Control Period. The Order shall also contain theapproved

Business plan for the Control Period.

Periodic Reviews

Review during the Control Period

15.1

To ensure smooth implementation of the Multi Year Tariff (MYT) framework, theCommission may

undertake periodic truing up and annual performance review of SLDC performance during the Control

Period, to address any practicalissues, concerns or unexpected outcomes that may arise.

Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020 23

15.2

The SLDC shall submit information as part ofannual performance review. This shall include annual

statements of its performanceand accounting statements and the fees and charges worked out in

accordance withthese Regulations.

15.3

During the Annual Performance Review, the Commission shall monitor the year wiseprogress of the

actual capital expenditure incurred by the SLDC vis-à-vis the approved capital expenditure. SLDC shall

submit the actual capital expenditure and capitalisation incurred along with theAnnual Performance

Review Filing.

15.4

The Commission shall,considering the impact of truing up and annual performance review of previous

years,determine the revised ARR and calculate the fees and charges of ensuing year.

15.5

The Commission may also specify any modifications to the forecast of the SLDC for the remainder of

the Control Period, withdetailed reasons for the same.

Review at the end of the Control Period

15.6

Towards the end of the Control Period, the Commission shall seek to review whether

theimplementation of the principles laid down in these Regulations has achieved theirintended

objectives. While doing this, the Commission shall take into account, amongother things, the industry

structure, requirement of sector, consumer and otherstakeholder expectations and SLDC’s

requirements at that point in time.Depending on the requirements of the sector to meet the objective

of the Act, theCommission may revise the principles for the next Control Period.

15.7

The end of the Control Period shall be the beginning of the next ControlPeriod and the SLDC shall

follow the sameprocedure unless specified otherwise by the Commission. The Commission

shallanalyse the performance of the SLDC and basedon the actual performance and other factors

prevalent, determine the initial values forthe next Control Period.

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Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020

CHAPTER V:

MISCELLANEOUS PROVISIONS

Issue of Orders and Practice Directions

16.1

Subject to the provisions of the Act and these Regulations, the Commission may, from time to time,

issue Orders and Practice Directions in regard to the implementation of these Regulations and

procedure to be followed on various matters, which the Commission has been empowered by these

Regulations to direct, and matters incidental or ancillary thereto.

16.2

Notwithstanding anything contained in these Regulations, the Commission shall have the authority,

either suo motu or on a Petition filed by any interested or affected party, to determine the tariff of any

Applicant.

Non-Compliance of Directions

17.1

State Load Despatch Centre may give such directions and exercise such supervision and control as may

be required for ensuring integrated operation of the power system for achieving maximum economy

and efficiency and every Licensee, generating company, sub-station and any other person connected

with the operation of the power system shall comply with such directions.

17.2

If any Licensee, Generating Company or any other user/person fails to comply with the directions

issued, shall be liable to a penalty as per Section 146 of the Electricity Act 2003.

Dispute Resolution

18.1

In case of dispute, any of the parties may make an application in accordance with the JSERC (Conduct

of Business) Regulations, 2016, as amended from time to time, including statutory re-enactment

thereof, for settlement of the dispute.

Power to remove difficulties

19.1

In case of any difficulty in giving effect to any of the provisions of this Regulation, the Commission may

by general or special order, issue appropriate directions to the SLDC, to take suitable action, not being

inconsistent with the provisions of the Act, which appear to the Commission to be necessary or

expedient for the purpose of removing the difficulty.

19.2

The SLDC may make an applicationbefore the Commission and seek suitable orders to remove any

difficulties that may arise in implementation of these Regulations.

Power of relaxation

20.1

The Commission may in public interest and for reasons to be recorded in writing, relax any of the

provision of these Regulations.

Interpretation

Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020 25

21.1

If a question arises relating to the interpretation of any provision of these Regulations, the decision of

the Commission shall be final.

Saving of Inherent Powers of the Commission

22.1

Nothing contained in these Regulations shall limit or otherwise affect the inherent powers of the

Commission from adopting a procedure, which is at variance with any of the provisions of these

Regulations, if the Commission, in view of the special circumstances of the matter or class of matters

and for reasons to be recorded in writing, deems it necessary or expedient to depart from the

procedure specified in these Regulations.

Enquiry and Investigation

23.1

All enquiries, investigations and adjudications under these Regulations shall be done by the

Commission through the proceedings in accordance with the provisions of the JSERC (Conduct of

Business) Regulations, 2016, as amended from time to time.

Power to amend

24.1

The Commission may from time to time add, vary, alter, suspend, modify, amend or repeal any

provisions of this Regulation.

Savings

25.1

Nothing in these Regulations shall be deemed to limit or otherwise affect the inherent power of the

Commission to make such orders as may be necessary to meet the ends of justice or to prevent abuse

of the process of the Commission.

25.2

Nothing in these Regulations shall bar the Commission from adopting in conformity with the

provisions of the Act a procedure, which is at variance with any of the provisions of these Regulations,

if the Commission, in view of the special circumstances of a matter or class of matters and for reasons

to be recorded in writing, deems it necessary or expedient for dealing with such a matter or class of

matters.

25.3

Nothing in these Regulations shall, expressly or impliedly, bar the Commission dealing with any matter

or exercising any power under the Act for which no Regulations or Regulations have been framed, and

the Commission may deal with such matters, powers and functions in a manner it thinks fit.

(By order of the Commission)

(Rajendra Prasad Nayak)

Secretary

Jharkhand State Electricity Regulatory Commission

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Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020

Summary of Timelines

Sr.

No.

Description

Filing of the

Document

by

Furnishing

additional

information

as sought by

the

Commission

Disposal of

the

Application

1.

Business Plan

for the Control

Period and MYT

Petition for the

Control Period

for FY 2020-21

to

FY 2025-26

November

30, 2020

Within 30

days of filing

of document

Within 120

days of

acceptance

of the filing

2.

True-Up for the

previous year,

Annual

Performance

Review for the

current year and

ARR & Fees and

Charges

Determination

for the next year

of the Control

Period

November

30 of the

financial

year for

which APR

has been

sought

Within 30

days of filing

of document

Within 120

days of

acceptance

of the filing

Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020 27

Appendix-I: Depreciation Schedule

S.

No.

Asset Description

Straight Line

Depreciation (%)

Land

1.

Land owned under full ownership

0.00

2.

Land Under Lease

i.

For investment in the land

2.67

ii.

For cost of clearing the site

2.67

Other Assets

3.

Building &Civil Engineering Works

i.

Offices and Residential

2.67

ii.

Temporary erection such as wooden structures

100.00

iii.

Roads other than Kutcha roads

2.67

iv.

Others

2.67

4.

Transformers, kiosk sub-station equipment &

otherfixed apparatus (including plant

foundations)

4.22

5.

Switchgear including cable connections

4.22

6.

Lightning Arrestors

4.22

7.

Batteries

12.77

8.

Underground Cable including joint boxesand

disconnected boxes

4.22

9.

Cable duct system

4.22

10.

Overhead lines including cable support systems

4.22

11.

Meters

12.77

12.

Self-Propelled Vehicles

12.77

13.

Air Conditioning Plants

i.

Static

4.22

ii.

Portable

7.60

14.

Furniture and Furnishing

i.

Office Furniture and Furnishing

6.33

ii.

Office equipment

6.33

iii.

Internal wiring including fittings and apparatus

6.33

iv.

Streetlight Fittings

6.33

15.

Apparatus let on hire

i.

Other than Motors

7.60

ii.

Motors

4.22

16.

Communication Equipment

6.33

17.

IT Equipment

15.00

18.

Software

15.00

19.

Any other assets not covered above

4.22(or as approved by

the Commission

28

Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020

S.

No.

Asset Description

Straight Line

Depreciation (%)

considering asset life

and residual value)

Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020 29

Appendix-II: Registration Form

(in compliance of Regulation4.2 of the Regulations)

1. Name of the entity (in bold letters):

2. Registered office address:

3. User category:

(i) Generating Station

(ii) Seller

(iii)Buyer

(iv) Transmission Licensee

(v) Distribution Licensee

4. User details (as on 31^stMarch of last financial year):

(i). Category – Generating Station

a. Total Installed Capacity:

b. Maximum Contracted Capacity (MW) using Intra State Transmission System:

c. Points of connection to the Intra State Transmission System:

S.

No.

Point of Connection

Voltage

Level

(kV)

Number of Special Energy

Meters (Main) installed at

this location

(ii). Category- Seller/ Buyer/ Distribution Licensee

a. Maximum Contracted Capacity (MW) using Intra State Transmission System:

b. Points of connection to the Intra State Transmission System:

S.

No.

Point of Connection

Voltage

Level

(kV)

Number of Special Energy

Meters (Main) installed at

this location

(iii). Category- Transmission Licensee

a. Sub-stations

S.

No.

Point of Connection

No. of

Transformer

Total Transformation

capacity or Design MVA

handling capacity if switching

station

30

Jharkhand Gazette (Extraordinary), Thursday, 12^th November, 2020

b. Transmission lines

S.

No.

Point of Connection

No. of

Transmission

Lines

Total (Ckt-kms)

11. Contact person(s) details for meters related to SLDC:

(i) Name:

(ii) Designation:

(iii) Landline Telephone No.:

(iv) Mobile No.:

(v) E-mail address:

(vi) Postal address:

The above information is true to the best of my knowledge and belief.

Signature of Authorised Representative

Place:

Name:

Date:

Designation:

Contact No.:

---------

Printed & Published by the Superintendent of Jharkhand Government Press, Doranda, Ranchi.

Jharkhand Gazette (Extraordinary) 571 -- 50.