Goa Gazette, No. 2223-3, 27 April 2022

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Reg. No. RNP/GOA/32/2021-2023

RNI No. GOAENG/2002/6410

Panaji, 27th April, 2022 (Vaisakha 7, 1944) SERIES I No. 3 PUBLISHED BY AUTHORITY

EXTRAORDINARY

No. 2

the Joint Electricity Regulatory Commission GOVERNMENT OF GOA Department of Power

Office of the Chief Electrical Engineer

__

Notification

120/03/MYT22-23 to 24-25/CEE/Tech/

The Electricity Department, Government

of Goa, according to the Regulations and as

per the procedures outlined in section 61,

62, & 64 of the Electricity Act, 2003 had filed

Petition for approval of Aggregate Revenue

Requirement (ARR) for 3rd MYT Control

Period from FY 2022-23 to FY 2024-25 and

Determination of Retail Tariff for FY 2022-23

before the Hon'ble Joint Electricity Regulatory

Commission for the States of Goa and Union

Territories.

In exercise of the powers conferred under

various sections of the Electricity Act, 2003

and all powers enabling therein, on behalf of for the state of Goa and Union Territories has

issued the Tariff Order dated 31st March, 2022

for approval of Aggregate Revenue

Requirement (ARR) for 3rd MYT Control

Period from FY 2022-23 to FY 2024-25 and

Determination of Retail Tariff for FY 2022-23

for Electricity Department, Government of Goa

which is given herebelow. The said Tariff

Order is effective from 1st April, 2022 and

shall, unless amended or revoked, continue

to be in force till further orders of the

Commission.

The above is hereby brought to the notice

of the public.

By order and in the name of the Governor

of Goa.

Stephen Fernandes, Chief Electrical

Engineer & ex officio Additional Secretary.

Panaji, 26th April, 2022.

TARIFF ORDER

Approval of Aggregate Revenue Requirements (ARR) for 3rd MYT Control Period from FY 2022-23 to FY 2024-25 and Determination of Retail Tariff for FY 2022-23

Petition No. 63/2021

for

Electricity Department, Government of Goa (ED-Goa)

31stMarch2022

JOINT ELECTRICITY REGULATORY COMMISSION

For the State of Goa and Union Territories,

3rd and 4th Floor, Plot No. 55-56, Sector -18, UdyogVihar - Phase IV

Gurugram, (122015) Haryana

Telephone: +91(124) 4684705 Telefax: +91(124) 4684706

Website: www.jercuts.gov.in

E-mail: [email protected]

Table of Contents

1. Chapter 1: Introduction

(cid:20)(cid:17)(cid:20)(cid:17)(cid:3)(cid:36)(cid:69)(cid:82)(cid:88)(cid:87)(cid:3)(cid:45)(cid:82)(cid:76)(cid:81)(cid:87)(cid:3)(cid:40)(cid:79)(cid:72)(cid:70)(cid:87)(cid:85)(cid:76)(cid:70)(cid:76)(cid:87)(cid:92)(cid:3)(cid:53)(cid:72)(cid:74)(cid:88)(cid:79)(cid:68)(cid:87)(cid:82)(cid:85)(cid:92)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:42)(cid:82)(cid:68)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:56)(cid:55)(cid:182)(cid:86)(cid:3)(cid:11)(cid:45)(cid:40)(cid:53)(cid:38)(cid:12)

1.2. About Goa

1.3. About Electricity Department, Government of Goa (EDG)

1.4. Multi Year Tariff Regulations, 2021

1.5. Filing and Admission of the Present Petition

1.6. Interaction with the Petitioner

1.7. Notice for Public Hearing

1.8. Public Hearing

2. Chapter 2: Summary of Suggestions/Objections received, Response from the Petitioner and

(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:57)(cid:76)(cid:72)(cid:90)(cid:86)

2.1. Regulatory Process

2.2. Suggestions/ Objections, Response of the Petitioner and Commi(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:57)(cid:76)(cid:72)(cid:90)(cid:86)

2.2.1. Delayed response post Cyclone Tauktae in Raia Village

2.2.2. Problem of live sagging wire and cracked pole

2.2.3. Computation of Cross Subsidy Surcharge (CSS)

2.2.4. Consideration of Tariff Policy while Computing Cross Subsidy Surcharge (CSS)

2.2.5. Additional Surcharge on stranded power due to Open Access

2.2.6. Computation of Additional Surcharge

2.2.7. Fulfilment of RPO Obligations through IEX products

2.2.8. Tariff Shock due to high revenue gap

2.2.9. High rate of return on equity

2.2.10. Formation of District Committee to help monitor loss reduction measures

2.2.11. Reduction in Electricity Duty

2.2.12. kVAh based Tariff for LT consumers

2.2.13. Reduction in delayed payment charges

2.2.14. Tariff on Street lighting within a compound

2.2.15. Consideration of Cold storage units as Agriculture allied Industry

2.2.16. Reliability linked tariff

2.2.17. Pumped Hydro Storage Systems (PHSS)

2.2.18. Low standards of O&M practices

2.2.19. Analyzing metering data

2.2.20. Audit of Annual Accounts

2.2.21. Periodical education of customers

2.2.22. Continuous Staff training, Long-term solution for power interruption and improvement of distribution efficiency

3. Chapter 3: True-up of the FY 2017-18, FY 2018-19, FY 2019-20 and FY 2020-21

3.1. Applicable provisions

3.2. Approach for the True-up of the FY 2017-18, FY 2018-19, FY 2019-20 and FY 2020-2157 Order on ARR for FY 2022-23 to FY 2024-25 and Retail Tariff for the FY 2022-23 3 Electricity Department, Government of Goa Joint Electricity Regulatory Commission (JERC) OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 3 (EXTRAORDINARY No. 2) 27TH APRIL, 2022

4. Chapter 4: Annual Performance Review of FY 2021-22

4.1. Applicable Provisions and Background

4.2. Approach for the Review for the FY 2021-22

5. Chapter 5: Determination of Aggregate Revenue Requirement for the 3rd MYT Control Period

5.1. Background

5.2. Approach for determination of ARR for each year of the 3rd MYT Control Period

5.3. Projection of Number of consumers, Connected Load and Energy Sales

5.4. Inter-State transmission loss

5.5. Intra-State Transmission & Distribution (T&D) Losses

5.6. Power Purchase Quantum & Cost

5.6.1. Power Purchase Quantum

5.6.2. Power Purchase Cost

5.6.3. Transmission Charges

5.6.4. Total power purchase quantum and cost

5.6.5. Energy Balance

5.6.6. Renewable Purchase Obligation 5.7. Operation & Maintenance Expenses

5.7.1. Employee Expenses

5.7.2. Administrative and General (A&G) Expenses

5.7.3. Repair & Maintenance Expenses (R&M)

5.7.4. Summary of O&M Expenses 5.8. Gross Fixed Assets (GFA) and Capitalization

5.9. Capital Structure

5.10. Depreciation

5.11. Interest on Loan

5.12. Return on Equity (RoE)

5.13. Interest on Security Deposits

5.14. Interest on Working Capital

5.15. Income Tax

5.16. Provision for Bad & Doubtful Debts

5.17. Non-Tariff Income (NTI)

5.18. Aggregate Revenue Requirement (ARR)

5.19. Revenue at existing Retail Tariff

5.20. Standalone Revenue Gap/ Surplus for FY 2022-23

6. Chapter 6: Tariff Principles and Design

6.1. Overall Approach

6.2. Applicable Regulations

6.3. Standalone and Consolidated Revenue Gap/ Surplus at existing tariff

6.4. Treatment of the Revenue Gap/ Surplus and Tariff Design58 Order on ARR for FY 2022-23 to FY 2024-25 and Retail Tariff for the FY 2022-23 4 Electricity Department, Government of Goa Joint Electricity Regulatory Commission (JERC) OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 3 (EXTRAORDINARY No. 2) 27TH APRIL, 2022 6.4.1. Tariff Design

6.4.2. Approved Final Tariff Schedule

6.4.3. Revenue from Approved Retail Tariff for FY 2022-23

6.4.4. Revenue Gap/ (Surplus) at Approved Tariff

6.4.5. Government Budgetary Support

6.4.6. Highlights of the Tariff Structure

7. Chapter 7: Open Access Charges for the FY 2022-23

7.1. Wheeling Charges

7.1.1. Allocation Matrix - Allocation of ARR into Wheeling and Retail Supply of Electricity 7.2. Additional Surcharge

7.3. Cross-Subsidy Surcharge

8. Chapter 8: Fuel and Power Purchase Adjustment Mechanism

8.1. Legal Provisions

8.2. Formula

9. Chapter 9: Directives

9.1. Directives continued in this Order

9.1.1. Annual Statement of Accounts

9.1.2. Preparation of Fixed Asset Register

9.1.3. Energy Audit Reports

9.1.4. Employee Cost / Manpower study

9.1.5. Interest on Consumer Security Deposit

9.1.6. Sub-Divisions as Strategic Business Units

9.1.7. Installation of Pre-Paid Meters

9.1.8. Unbundling of Electricity Department

9.1.9. Renewable Purchase Obligation

9.1.10. Billing and Collection Efficiency

9.1.11. Determination of Category wise/ Voltage wise Cost of supply

9.1.12. Submission of Petition for True up of FY 2016-17, FY 2017-18, FY 2018-19 and FY 2019-20 and APR of FY 2020-21

9.1.13. Collection of data based on consumer type

9.1.14. kVAh based tariff for LT-Industrial and LT-Commercial categories

10. Chapter 10: Tariff Schedule

10.1. Tariff Schedule

10.2. Applicability

10.3. General Terms and Conditions

10.4. Schedule of Miscellaneous Charges

Annexures

Annexure 1: List of Stakeholders59 Order on ARR for FY 2022-23 to FY 2024-25 and Retail Tariff for the FY 2022-23 5 Electricity Department, Government of Goa Joint Electricity Regulatory Commission (JERC) OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 3 (EXTRAORDINARY No. 2) 27TH APRIL, 2022

List of Tables

Table 1: Standalone Revenue Gap/ (Surplus) at existing tariff for the FY 2022-23 (INR Cr.) .................................. Table 2: Standalone Revenue Gap/ (Surplus) at proposed/approved tariff for the FY 2022-23 (INR Cr.).............. Table 3: Timelines of the interaction with the Petitioner ............................................................................................ Table 4: Details of Public Notices published by the Commission................................................................................ Table 5: Details of Public Notices published by the Petitioner .................................................................................... Table 6: Category-wise number of consumers proposed by the Petitioner for 3rd MYT Control Period ................... Table 7: Category-wise connected load (kW) proposed by the Petitioner for 3rd MYT Control Period ..................... Table 8: Category-wise energy sales (MUs) proposed by the Petitioner for 3rd MYT Control Period ....................... Table 9: Category-wise number of consumers approved by the Commission for 3rd MYT Control Period .............. Table 10: Category-wise connected load (kW) approved by the Commission for 3rd MYT Control Period .............. Table 11: Category-wise energy sales (MU) approved by the Commission for 3rd MYT Control Period ................... Table 12: Inter-state transmission losses considered by the Petitioner for FY 2021-22 and the 3rd MYT Control Period .............................................................................................................................................................................. Table 13: Inter-state losses approved by the Commission for 3rd MYT Control Period ............................................. Table 14: Intra-State Distribution Losses (%) submitted by the Petitioner ................................................................ Table 15: Intra-State Distribution Losses (%) approved by the Commission ............................................................. Table 16: Power Purchase quantum (MU) and Cost (In INR Cr) submitted by Petitioner for the 3rd Control Period .............................................................................................................................................................................. Table 17: Power purchase quantum at state periphery approved by the Commission for the 3rd Control Period .... Table 18: Power Purchase Quantum (MU) and cost (INR Cr) approved for the 3rd MYT Control Period ................ Table 19: Average Power Purchase Cost (APPC) for the FY 2022-23.......................................................................... Table 20: Energy Balance submitted by the Petitioner (MU) ...................................................................................... Table 21: Energy Balance approved by Commission (MU) .......................................................................................... Table 22: RPO plan submitted by the Petitioner for the 3rd MYT Control Period (MU) ............................................ Table 23: Renewable Purchase Obligation (RPO) approved by the Commission for 3rd MYT Control Period......... Table 24: Calculation of CPI rate considered for Employee Cost projection .............................................................. Table 25: Calculations of Employee Expenses for base year as submitted by the Petitioner (INR Crore) ............... Table 26: Employee Expense as submitted by the Petitioner for 3rd Control Period (INR Cr).................................. Table 27: Computation of Base Employee Expenses (INR Cr.) ................................................................................... Table 28: CPI inflation computed for 3rd Control Period ........................................................................................... Table 29: Employee Expense approved by the Commission for 3rd Control Period ................................................... Table 30: Calculation of CPI rate considered for A&G Expenses projection ............................................................ Table 31: Calculations of A&G Expenses for base year as submitted by the Petitioner (INR Crore) ...................... Table 32: A&G Expense as submitted by the Petitioner for 3rd MYT Control Period ................................................. Table 33: A&G Expense approved by the Commission for 3rd Control Period ........................................................... Table 34: Calculation of WPI rate considered for R&M Expenses projection ............................................................ Table 35: Calculation (cid:82)(cid:73)(cid:3)(cid:181)(cid:46)(cid:182)(cid:3)(cid:68)(cid:86)(cid:3)(cid:86)(cid:88)(cid:69)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:72)(cid:87)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:85)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:22)rd Control Period..................................................... Table 36: R&M Expense submitted by the Petitioner for 3rd Control Period ............................................................. (cid:55)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:22)(cid:26)(cid:29)(cid:3)(cid:181)(cid:46)(cid:182)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:88)(cid:87)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:69)(cid:92)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:22)(cid:85)(cid:71)(cid:3)(cid:48)(cid:60)(cid:55)(cid:3)(cid:38)(cid:82)(cid:81)trol Period .............................................................. Table 38: CPI inflation computed for 3rd MYT Control Period .................................................................................. Table 39: R&M Expense approved by the Commission for the 3rd MYT Control Period (in INR Cr.) ..................... Table 40: Summary of O&M expenses submitted by the Petitioner for the 3rd MYT Control Period (in INR Cr.) . Table 41: Summary of O&M expenses approved by the Commission for the 3rd MYT Control Period (in INR Cr.) Table 42: Capital Expenditure submitted by the Petitioner for the 3rd MYT Control Period (INR Cr) ..................... Table 43: Capitalization submitted by the Petitioner for the 3rd MYT Control Period (INR Cr) ............................... Table 44: Capital Expenditure & Capitalisation considered by the Commission for 3rd Control Period (INR Cr.) Table 45: Funding Plan as proposed by the Petitioner for the 3rd Control period (INR Crore) ............................... Table 46: Capital Structure submitted by the Petitioner for 3rd MYT Control Period (INR Crore) .......................... Table 47: Capital Structure considered by the Commission (INR Cr.) .......................................................................

Table 48: GFA (including GFA addition through Electricity Duty Fund, Govt. Grants and Consumer Contribution) considered by the Commission for 3rd MYT Control Period (INR Cr.) ............................................... Table 49: GFA (excluding GFA addition through Electricity Duty Fund, Govt. Grants and Consumer Contribution) considered by the Commission for 3rd MYT Control Period (INR Cr.) ............................................... Table 50: Reconciliation of normative loan up to FY 2021-22 based on provisional information submitted by the Petitioner (INR Cr.) ........................................................................................................................................................ Table 51: Reconciliation of normative equity up to FY 2021-22 based on provisional information submitted by the Petitioner (INR Cr.) .................................................................................................................................................. Table 52: Depreciation submitted by the Petitioner for the 3rd MYT Control Period (INR Cr) ................................. Table 53: Asset-wise depreciation rate considered by the Commission for weighted average rate for 3rd MYT Control Period (%) .......................................................................................................................................................... Table 54: Depreciation considered by the Commission for 3rd MYT Control Period (INR Cr.) ................................ Table 55: Interest on Normative Loan submitted by the Petitioner for the 3rd MYT Control Period (INR Cr) ........ Table 56: Interest on Loan considered by the Commission for 3rd MYT Control Period (INR Cr.) .......................... Table 57: Return on Equity submitted by the Petitioner for the 3rd MYT Control Period (INR Cr) .......................... Table 58: Return on Equity considered by the Commission for 3rd Control Period (INR Cr.) ................................. Table 59: Interest on Security Deposit submitted by the Petitioner for the 3rd MYT Control Period (INR Cr)........ Table 60: Interest on Consumer security considered by the Commission for 3rd Control Period (INR Cr.) ........... Table 61: Interest on Working Capital submitted by the Petitioner for the 3rd MYT Control Period (In INR Cr) ... Table 62: Interest on working capital considered by the Commission for 3rd MYT Control Period (INR Cr.) ......... Table 63: Non-Tariff Income claimed by the Petitioner for the 3rd MYT Control Period (INR Cr) ........................... Table 64: Non-Tariff Income considered by the Commission for 3rd MYT Control Period (INR Cr.) ...................... Table 65: ARR submitted by the Petitioner for 3rd MYT Control Period (INR Cr.) .................................................... Table 66: ARR approved by the Commission for the 3rd MYT Control Period (INR Cr.) .......................................... Table 67: Revenue at existing tariff submitted by the Petitioner for FY 2022-23 (INR Cr.) ..................................... Table 68: Revenue at existing tariff approved by the Commission for FY 2022-23 (INR Cr.) .................................. Table 69: Standalone Revenue Gap/ (Surplus) at existing tariff approved by Commission for FY 2022-23 (In INR Cr) ............................................................................................................................................................................ Table 70: Standalone Revenue Gap/ (Surplus) submitted by Petitioner for FY 2022-23 (In Rs Cr) ........................ Table 71: Cumulative Revenue Gap/ (Surplus) submitted by Petitioner for FY 2022-23 (In Rs Cr) ........................ Table 72: Standalone Revenue Gap/ (Surplus) at existing tariff approved by Commission for FY 2022-23 (In INR Cr) ............................................................................................................................................................................ Table 73: Tariff Schedule proposed by the Petitioner for FY 2022-23 ........................................................................ Table 74: Existing and approved tariff .......................................................................................................................... Table 75: Revenue from approved retail tariff determined by Commission (In INR Cr)........................................... Table 76: Tariff increase approved by Commission ..................................................................................................... Table 77: Revenue Gap/ (Surplus) approved by Commission for FY 2022-23 (In INR Cr) ...................................... Table 78: Allocation matrix as submitted by the Petitioner......................................................................................... Table 79: Wheeling Charge calculation as submitted by Petitioner ............................................................................ Table 80: Allocation matrix approved by Commission ................................................................................................ Table 81: Parameters assumed for voltage wise allocation of wheeling costs............................................................. Table 82: Allocation of costs based on voltage level ..................................................................................................... Table 83: Wheeling Charges approved by Commission ............................................................................................... Table 84: Additional Surcharge calculation as submitted by Petitioner ..................................................................... Table 85: Additional Surcharge approved by Commission .......................................................................................... Table 86: Cross-Subsidy Surcharge as proposed by the Petitioner ............................................................................. Table 87: Voltage wise losses assumed by Commission ............................................................................................... Table 88: Energy Input at each voltage level (MU) ...................................................................................................... Table 89: Parameters used for allocation of fixed costs ............................................................................................... Table 90: Voltage Wise Cost of Supply (VCoS) ............................................................................................................. Table 91: Cross-Subsidy Surcharge approved by Commission (INR/kWh) ............................................................... Table 92: Rapproved determined by Commission for FY 2022-23 ............................................................................. Table 93: Tariff Schedule ...............................................................................................................................................

Joint Electricity Regulatory Commission (JERC) Table 94: Applicability of Tariff Schedule ..................................................................................................................... Table 95: Applicability of ToD Tariff ............................................................................................................................. Table 96: Schedule of Miscellaneous Charges .............................................................................................................. Table 97: List of participants in Public Hearing ...........................................................................................................

List of abbreviations

Before the

Joint Electricity Regulatory Commission

For the State of Goa and Union Territories, Gurugram

QUORUM

Ms.Jyoti Prasad, Member

Petition No. 63/2021

In the matter of

Approval of Aggregate Revenue Requirements (ARR) for 3rd MYT Control Period from FY 2022-23 to FY 2024- 25 and Determination of Retail Tariff for FY 2022-23.

And in the matter of

Electricity Department, Government of Goa (ED-Goa) (cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:17)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:171)(cid:17)(cid:17)Petitioner

ORDER

Dated:31stMarch2022

1) This Order is passed in respect of the Petition filed by the Electricity Department, Government of Goa (ED-Goa)(cid:11)(cid:75)(cid:72)(cid:85)(cid:72)(cid:76)(cid:81)(cid:3)(cid:68)(cid:73)(cid:87)(cid:72)(cid:85)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:86)(cid:3)(cid:179)(cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:72)(cid:87)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:85)(cid:180)(cid:3)(cid:82)(cid:85)(cid:3)(cid:179)ED-Goa(cid:180)(cid:3)(cid:82)(cid:85)(cid:3)(cid:179)(cid:55)(cid:75)(cid:72)(cid:3)(cid:47)(cid:76)(cid:70)(cid:72)(cid:81)(cid:86)(cid:72)(cid:72)(cid:180)(cid:12)(cid:3)for Approval of Annual Performance Review for FY 2021-22 and Aggregate Revenue Requirement (ARR) for 3rd MYTControl Period and determination of Retail Tariff for the FY 2022-23before the Joint Electricity Regulatory Commission (herein (cid:68)(cid:73)(cid:87)(cid:72)(cid:85)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:86)(cid:3)(cid:179)(cid:55)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:180)(cid:3)(cid:82)(cid:85)(cid:3)(cid:179)(cid:45)(cid:40)(cid:53)(cid:38)(cid:180)(cid:12).

2) The Commission scrutinised the said Petition and generally found it in order. The Commission admitted the Petition on 30thDecember 2021. The Commission thereafter requisitioned further information/ clarifications on the data gaps observed to take a prudent view of the said Petition. The Commission also held a Technical Validation Session to determine sufficiency of data and the veracity of the information submitted.Further, due to the COVID-19 pandemic that had adversely impacted the movement of people as per the guidelines of GoI which had suggested avoiding of travel and gathering of people as far as possible, the Commission had decided to conduct the Public Hearing virtually. The virtual Public Hearing was held on 24thJanuary 2022, and all the Stakeholders/Electricity Consumers present in the Public Hearing were heard.Further, suggestions/ comments/ views and objections were invited from the Stakeholders and Electricity Consumers.

3) (cid:55)(cid:75)(cid:72)(cid:3) (cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3) (cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3) (cid:82)(cid:81)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:51)(cid:72)(cid:87)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3) (cid:86)(cid:88)(cid:69)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3) (cid:85)(cid:72)(cid:79)(cid:72)(cid:89)(cid:68)(cid:81)(cid:87)(cid:3) JERC MYT Regulations, facts of the matter, rules and provisions of the Electricity Act, 2003 and after proper due diligenceand prudence check, has approved theAggregate Revenue Requirement (ARR) for 3rd MYTControl Period and determination of Retail Tariff for the FY 2022-23.

4) A Summary has been provided as follows:

(a) The following table provides ARR, Revenue and Standalone Gap/ (Surplus) at existing tariff as submitted by the Petitioner and approved by the Commission for the FY 2022-23:

(b) The following table provides ARR, Revenue and Standalone Gap/ (Surplus) at approved tariff as approved by the Commission for the FY 2022-23:

Table 2: Standalone Revenue Gap/ (Surplus) at proposed/approved tariff for the FY 2022-23

(INR Cr.)

(c) The Petitioner has proposed a reduction in average tariff rate thereby estimating a reduction of INR 108.44 Cr. from the projected revenue in FY 2022-23.

(d) The Commission has approved an average tariff hike of 1.58% to further reduce the reliance of the Petitioner on budgetary support from the Govt. of Goa. The Commission has also introduced fixed charges based on connected load for all Domestic and Commercial slabs.The Commission has approved the Average Billing Rate (ABR) of INR 4.77/kWh against the approved Average Cost of Supply (ACoS) of INR 5.68/kWh. The entire revenue gap shall be met through the budgetary support as per assurance letter of the Govt. of Goa dated 29th December 2021. The Commission acknowledges this letter of assurance from the Government of Goa towards meeting any prospective revenue gap for FY 2022-23, and hence the revenue gap for FY 2022-23 has been considered as nil.

(e) The Commission has increased the tariff levels for cross-subsidized categories by higher than the average hike and has reduced/maintained the tariff levels at lower than average tariff hike for cross-subsidizing categories.

(f) The ABR without the Government Budgetary support has been calculated considering the per unit gap of INR 0.91/kWh (difference between ACoS and ABR at Approved Tariff with Govt. Budgetary Support). However, the Commission would like to highlight that in case this gap had to be entirely fulfilled by revenue from consumers then it would have demanded an additional average tariff increase of 18.98%.

5) This Order shall come into force with effect from 1st April 2022 and shall, unless amended or revoked, continue to be in force till further orders of the Commission.

6) The licensee shall publish the Tariff Schedule and salient features of Tariff as determined by the Commission in this Order within one week of receipt of the Order in three daily newspapers in the respective local languages of the region, besides English, having wide circulation in their respective areas of supply and also upload the Tariff Order on its website.

7) Ordered accordingly, the attached documents giving detailed reasons, grounds and conditions are the Integral part of this Order.

(Jyoti Prasad)

Member

Place: Gurugram

Date: 31stMarch2022

Certified Copy

(Rakesh Kumar)

Secretary, JERC

1. Chapter 1: Introduction

1.1. About Joint Electricity Regulatory Commission for the State of

(cid:42)(cid:82)(cid:68)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:56)(cid:55)(cid:182)(cid:86)(cid:3)(cid:11)(cid:45)(cid:40)(cid:53)(cid:38)(cid:12)

In exercise of powers conferred by the Electricity Act 2003, the Central Government constituted the Joint (cid:40)(cid:79)(cid:72)(cid:70)(cid:87)(cid:85)(cid:76)(cid:70)(cid:76)(cid:87)(cid:92)(cid:3)(cid:53)(cid:72)(cid:74)(cid:88)(cid:79)(cid:68)(cid:87)(cid:82)(cid:85)(cid:92)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:56)(cid:81)(cid:76)(cid:82)(cid:81)(cid:3)(cid:55)(cid:72)(cid:85)(cid:85)(cid:76)(cid:87)(cid:82)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:72)(cid:91)(cid:70)(cid:72)(cid:83)(cid:87)(cid:3)(cid:39)(cid:72)(cid:79)(cid:75)(cid:76)(cid:3)(cid:87)(cid:82)(cid:3)(cid:69)(cid:72)(cid:3)(cid:78)(cid:81)(cid:82)(cid:90)(cid:81)(cid:3)(cid:68)(cid:86)(cid:3)(cid:179)(cid:45)(cid:82)(cid:76)(cid:81)(cid:87)(cid:3)(cid:40)(cid:79)(cid:72)(cid:70)(cid:87)(cid:85)(cid:76)(cid:70)(cid:76)(cid:87)(cid:92)(cid:3) (cid:53)(cid:72)(cid:74)(cid:88)(cid:79)(cid:68)(cid:87)(cid:82)(cid:85)(cid:92)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:56)(cid:81)(cid:76)(cid:82)(cid:81)(cid:3)(cid:55)(cid:72)(cid:85)(cid:85)(cid:76)(cid:87)(cid:82)(cid:85)(cid:76)(cid:72)(cid:86)(cid:180)(cid:3)(cid:89)(cid:76)(cid:71)(cid:72)(cid:3)(cid:81)(cid:82)(cid:87)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:81)(cid:82)(cid:17)(cid:3)(cid:21)(cid:22)(cid:18)(cid:24)(cid:21)(cid:18)(cid:21)(cid:19)(cid:19)(cid:22)-R&R dated 2ndMay 2005. Later with the joining of the Sta(cid:87)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:42)(cid:82)(cid:68)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:70)(cid:68)(cid:80)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:69)(cid:72)(cid:3)(cid:78)(cid:81)(cid:82)(cid:90)(cid:81)(cid:3)(cid:68)(cid:86)(cid:3)(cid:179)(cid:45)(cid:82)(cid:76)(cid:81)(cid:87)(cid:3)(cid:40)(cid:79)(cid:72)(cid:70)(cid:87)(cid:85)(cid:76)(cid:70)(cid:76)(cid:87)(cid:92)(cid:3)(cid:53)(cid:72)(cid:74)(cid:88)(cid:79)(cid:68)(cid:87)(cid:82)(cid:85)(cid:92)(cid:3) (cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3) (cid:73)(cid:82)(cid:85)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:3) (cid:82)(cid:73)(cid:3) (cid:42)(cid:82)(cid:68)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:56)(cid:81)(cid:76)(cid:82)(cid:81)(cid:3) (cid:55)(cid:72)(cid:85)(cid:85)(cid:76)(cid:87)(cid:82)(cid:85)(cid:76)(cid:72)(cid:86)(cid:180)(cid:3) (cid:11)(cid:75)(cid:72)(cid:85)(cid:72)(cid:76)(cid:81)(cid:68)(cid:73)(cid:87)(cid:72)(cid:85)(cid:3) (cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:85)(cid:72)(cid:71)(cid:3) (cid:87)(cid:82)(cid:3) (cid:68)(cid:86)(cid:3) (cid:179)(cid:45)(cid:40)(cid:53)(cid:38)(cid:180)(cid:3) (cid:82)(cid:85)(cid:3) (cid:179)(cid:87)(cid:75)(cid:72)(cid:3) (cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:180)(cid:12)(cid:3)(cid:89)(cid:76)(cid:71)(cid:72)(cid:3)(cid:81)(cid:82)(cid:87)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:81)(cid:82)(cid:17)(cid:3)(cid:21)(cid:22)(cid:18)(cid:24)(cid:21)(cid:18)(cid:21)(cid:19)(cid:19)(cid:22)-R&R (Vol. II) dated 30thMay 2008.

JERC is a statutorybody responsible for regulation of the Power Sector in the State of Goa and Union Territories of Andaman & Nicobar Islands, Lakshadweep, Chandigarh, Daman & Diu, Dadra & Nagar Haveli and Puducherry, consisting of generation, transmission, distribution, trading and use of electricity etc. Its primary objective includes taking measures conducive to the development of the electricity industry, promoting competition therein, protecting the interests of consumers and ensuring supply of electricity to all areas.

1.2. About Goa

Goa is a state on the southwestern coast of India within the

region known as the Konkan, and geographically separated

from the Deccan highlands by the Western Ghats. It is

surrounded by the Indian states of Maharashtra to the north

and Karnataka to the east and south, with the Arabian Sea

forming its western coast. It is India's smallest state by area

and the fourth-smallest by population. The state is divided

into two districts: North Goa and South Goa.North Goa is divided into three subdivisions (cid:178) Panaji, Mapusa, and Bicholim and further into five talukas (subdistricts). South Goa is divided into five subdivisions (cid:178) Ponda, Mormugao- Vasco, Margao, Quepem, and Dharbandora and further into

seven talukas(subdistricts).

Goa has the highest GDP per capita among all Indian

states,two and a half times that of the country. The state of

Goa is famous for its excellent beaches, churches, and

temples. Tourism is Goa's primary industry,it gets 12% of

foreign tourist arrivals in India.The state is also rich in

minerals and ores, and mining forms the second largest

industry. Iron, bauxite, manganese, clays, limestone, and silica are mined extensively in Goa.

Goa is often described as a fusion between Eastern and Western culture with Portuguese culture having a dominant position in the state in its architectural, cultural or social settings.

1.3. About Electricity Department, Government of Goa (EDG)

(cid:55)(cid:75)(cid:72)(cid:3)(cid:40)(cid:79)(cid:72)(cid:70)(cid:87)(cid:85)(cid:76)(cid:70)(cid:76)(cid:87)(cid:92)(cid:3)(cid:39)(cid:72)(cid:83)(cid:68)(cid:85)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3)(cid:42)(cid:82)(cid:89)(cid:72)(cid:85)(cid:81)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:42)(cid:82)(cid:68)(cid:3)(cid:11)(cid:75)(cid:72)(cid:85)(cid:72)(cid:76)(cid:81)(cid:68)(cid:73)(cid:87)(cid:72)(cid:85)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:86)(cid:3)(cid:179)(cid:40)(cid:39)-(cid:42)(cid:82)(cid:68)(cid:180)(cid:3)(cid:82)(cid:85)(cid:3)(cid:179)(cid:40)(cid:39)(cid:42)(cid:180) (cid:82)(cid:85)(cid:3)(cid:181)(cid:51)(cid:72)(cid:87)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:85)(cid:182)) is a deemed Distribution Licensee within the meaning of Section 2 (17) of Electricity Act 2003 and pursuant to the Section 14 of the Electricity Act. Further, Section 42 and 43 of the Electricity Act 2003 prescribes the following duties of the deemed Distribution Licensee:

(cid:120) To develop and maintain an efficient, coordinated and economical distribution system;

(cid:120) To supply electricity on an application by any person, in accordance with the provisions specified in the Electricity Act 2003;

(cid:120) To provide non-discriminatory open access to the consumers;

(cid:120) To establish a forum for redressal of grievances of the consumers.

The primary objective of EDG is to undertake the transmission, distribution and retail supply of electricity in its license area and for this purpose plan, construct, and manage the power system network in all its aspects. EDG is further responsible for carrying out the business of purchasing and selling of electricity along with activities such as billing and collection in the area.

1.4. Multi Year Tariff Regulations, 2021

The Commission notified the Joint Electricity Regulatory Commission for the State of Goa and Union Territories (Generation, Transmission and Distribution Multi Year Tariff) Regulations, 2021(hereinafter referred to as MYT Regulations, 2021) on 22thMarch 2021. These Regulations are applicable in the 3rdMYT Control Period comprising of three financial years from FY 2022- 23 to FY 2024-25. These Regulations are applicable to all the generation companies, transmission and distribution licensees in the State of Goa and Union Territories of Andaman & Nicobar Islands, Lakshadweep, Chandigarh, Daman & Diu, Dadra & Nagar Haveli and Puducherry.

1.5. Filing and Admission of the Present Petition

The present Petition was admitted on 30th December 2021 and marked as Petition No. 63 of 2021.The Commission and the Petitioner subsequently uploaded the Petition on their respective websites.

1.6. Interaction with the Petitioner

A preliminary scrutiny/analysis of the Petition was conducted, and certain deficiencies were observed.

Accordingly, discrepancy notes were issued to the Petitioner. Further, additional information/clarifications were solicited from the Petitioner as and when required. The Commission and the Petitioner also discussed various concerns of the Petitioner and key data gaps, which included retail sales, revenue from retail tariff, capitalization, tariff proposal etc. The Petitioner submitted its response to the issues through various letters/emails.

(cid:55)(cid:75)(cid:72)(cid:3) (cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3) (cid:70)(cid:82)(cid:81)(cid:71)(cid:88)(cid:70)(cid:87)(cid:72)(cid:71)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:55)(cid:72)(cid:70)(cid:75)(cid:81)(cid:76)(cid:70)(cid:68)(cid:79)(cid:3) (cid:57)(cid:68)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:54)(cid:72)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3) (cid:11)(cid:55)(cid:57)(cid:54)(cid:12)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:51)(cid:72)(cid:87)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:85)(cid:3) (cid:68)(cid:87)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3) office in Gurugram, during which the discrepancies in the Petition were conveyed and additional information required by the Commission was sought. Subsequently, the Petitioner submitted replies to the issues raised in this session and provided documentary evidence to substantiate its claims regarding various submissions. The following table provides the list of interactions with the Petitioner along with the dates:

1.7. Notice for Public Hearing

Public Notices were published by the Commission in the leading newspapers as tabled below, giving due intimation to the stakeholders, consumers and the public at large about the Public Hearing to be conducted by the Commission. These notices were also (cid:88)(cid:83)(cid:79)(cid:82)(cid:68)(cid:71)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:90)(cid:72)(cid:69)(cid:86)(cid:76)(cid:87)(cid:72)

Table 4: Details of Public Notices published by the Commission

The Public Notice was published by the Petitioner in the following newspapers for inviting objections/ suggestionsfrom the stakeholders on the Tariff Petition:

Table 5: Details of Public Notices published by the Petitioner

1.8. Public Hearing

The COVID-19 pandemic had adversely impacted the movement of people. The guidelines of GoI had accordingly suggested avoiding of travel and gathering of people as far as possible. In view of above, the physical conduct of proceedings by the Commission was not possible. So, the Commission deemed it is necessary to provide an access to all the stakeholders by conducting proceedings remotely, by the use of audio and video enabled hearings in the matters of Petition submitted by Electricity Department, Goa. Therefore, the Commission has decided that the comments/suggestions of the stakeholders need to be heard virtually through video conferencing for seeking their opinion.

Accordingly, the Virtual Public Hearing was held on 24th January 2022 to discuss the issues, if any, related to the Petition filed by the Petitioner. The issues and concerns raised by the stakeholders in writing and as voiced by them during the Public Hearing have been examined by the Commission. The names of the stakeholders who attended the Public Hearing are provided in Annexure-I. The major issues discussed, the responses of the Petitioner thereon and the views of the Commission have been summarized in Chapter 2 of this Order.

2. Chapter 2: Summary of

Suggestions/Objections received,

Response from the Petitioner and the

(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:57)(cid:76)(cid:72)(cid:90)(cid:86)

2.1. Regulatory Process

On admitting the Petition, the Commission directed the Petitioner to make copies of the Petition available to the public, upload the Petition on the website and also publish the same in the newspapers in an abridged form in the given format duly inviting comments/objections from the public as per the provisions of the MYT Regulations, 2021.

The COVID-19 pandemic has adversely impacted the movement of people as per the guidelines of GoI. These guidelines have also suggested avoiding of travel and gathering of people as far as possible. In view of the above, the physical conduct of proceedings by the Commission was not possible. So, The Commission deemed it is necessary to provide an access to all the stakeholders by conducting proceedings remotely, by the use of audio and video enabled hearings in the matters of Petition submitted by the Petitioner. Therefore, the Commission decided that the comments/suggestions of the stakeholders need to be heard virtually through video conferencing for seeking their opinion.

Accordingly, the Virtual Public Hearing was held on 24th January 2022 to discuss the issues, if any, related to the Petition filed by the Petitioner. The issues and concerns raised by the stakeholders in writing and as voiced by them during the Public Hearing have been examined by the Commission. The names of the stakeholders who attended the Public Hearing are provided in Annexure-I.

2.2. Suggestions/ Objections, Response of the Petitioner and

(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:57)(cid:76)(cid:72)(cid:90)(cid:86)

The Commission is appreciative of the efforts of various stakeholders in providing their suggestions/comments/ observations to make the process responsive and efficient. The relevant observations of the stakeholders have been suitably considered by the Commission while finalizing this Tariff Order. The submissions of the stakeholders, response of the Petitioner and views of the Commission are summarized below:

2.2.1. Delayed response post CycloneTauktae in Raia Village

(cid:54)(cid:87)(cid:68)(cid:78)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:72)(cid:81)(cid:87)(cid:29)

The Cyclone hit Goa on May 15, 2021 and parts of Raia Village were affected and were in dark for 3-4 days.

Heavy infrastructure damage like falling of huge trees, electricity poles and lines has occurred, and several roads were blocked. The Village Panchayat of Raia acted swiftly and cleared the roads by 10.00 am on the same day. However, there was no JE or any staff at the Electrical Sub-Station for people of Raia to interact with the consumers.

The JE arrived the next day (Monday) at 10.00 am and again was not available in the office to guide the public on Damage Assessment and Restoration Plan. Elderly People, Covid Patients, children, etc were suffering for 3 to 4 days without electricity. After 3 days the power was restored. Still, few of the cracked poles and the sagging electrical live wires are to be repaired.

(cid:51)(cid:72)(cid:87)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:53)(cid:72)(cid:86)(cid:83)(cid:82)(cid:81)(cid:86)(cid:72)(cid:29)

The cyclone "Tauktae" that hit Goa on 16/05/2021 has led to huge damage and destruction to the electrical infrastructure and the power distribution network in the entire state of Goa which affected power supply to more than 70% of the power consumers of the State.

All the Department staff were engaged in the restoration works so as to restore the power supply to the consumers at the earliest. A war room was setup to provide directions and monitor the restoration process.

Prior to the cyclone, large number of local contractors were assigned for restoration works and further, more contractors were airlifted from other states to increase the pace of the work.

The temporary restoration works were completed to the extent of 70% within 48 hours and up to 95% within 72 hours and simultaneously strengthening and permanent infrastructure restoration was continued and completed.

As the entire network of the State of Goa was down due to the hit, all the departmental staffs and contractors worked round the clock to restore the power stage by stage ranging from the upstream level (i.e 33kV) to downstream level (i.e 440 V).

However, the extent of damage caused by cyclone to the Department infrastructure was massive and carrying out restoration works with only Department staff would have delayed restoration works and consequently would have delayed power supply to consumers across the State especially in remote parts. On instructions of the Minister of Power, it was therefore decided to engage the services of external contractors to carry out power restoration works. Thus, external contractors from Goa and other states were requisitioned immediately to assist the Departmental staff in the restoration works.

In view of above, allegations made by Mr. Martin Rodrigues are denied by ED Goa. It is submitted that ED-Goa is fully committed to provide timely and satisfactory services to its consumers and is striving hard to achieve.

(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:57)(cid:76)(cid:72)(cid:90)(cid:29)

The stakeholder may note the response of the Petitioner. Further, the Commission directs the Petitioner to maintain the quality and reliability of supply as per the JERC Supply Code Regulations, 2018 and JERC Standards of Supply Regulations, 2015.

2.2.2. Problem of live sagging wire and cracked pole

(cid:54)(cid:87)(cid:68)(cid:78)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:72)(cid:81)(cid:87)(cid:29)

The sagging live wires are between Pole no. CLR/F1/2 and the other pole towards its south (there is no number on this pole) with the distance between the poles is about. 60.00ms.The cracked pole and the sagging live wires pose danger to human lives any moment and the same is persisting for 8 months. Kindly, resolve this problem on urgent basis.

(cid:51)(cid:72)(cid:87)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:53)(cid:72)(cid:86)(cid:83)(cid:82)(cid:81)(cid:86)(cid:72)(cid:29)

ED-Goa has resolved the grievance of Mr. Martin Rodrigues raised in the Public Hearing. The cracked poles have been replaced and sagging line has been tightened. The span length between pole No. CLR/F1/2 and other poles was measured and found to be 48 m instead of 60 m as claimed by the party. However, the existing LT line was strung along an old HT pole which was present along the existing line after completing fit up of 2 pin and 4 pin cross arms and the line span is now divided into 18 m on one side and 30 m on the other.

(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:57)(cid:76)(cid:72)(cid:90)(cid:29)

The stakeholder may note the response of the Petitioner. Further, the Commission directs the Petitioner to maintain the quality and reliability of supply as per the Electricity act,2003 and Regulations made thereunder.

2.2.3. Computation of Cross Subsidy Surcharge (CSS)

(cid:54)(cid:87)(cid:68)(cid:78)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:72)(cid:81)(cid:87)(cid:29)

The IEX has submitted that, it has observed that the Petitioner has proposed a decrease in the energy charge (@30 paise/ unit decrease for the HT industrial category) against the tariff approved for FY 2021-22. However, while computing the CSS, an increase in the Average Billing Rate (ABR) has been considered compared to the ABR approved by the Commission in the Tariff Order for FY 2021-22, which was computed basis the electricity tariff approved for FY 2021-22. The Commission is requested to consider the impact of the proposed decrease in electricity tariff on the computation of ABR while determining the CSS, so that the effect of the proposed tariff rationalization is reflected in CSS also.

(cid:51)(cid:72)(cid:87)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:53)(cid:72)(cid:86)(cid:83)(cid:82)(cid:81)(cid:86)(cid:72)(cid:29)

It is submitted that in FY 2021-22, Commission estimated total HT sales of 2178 MUs and revenue of Rs. 1268 Crores arriving of ABR of Rs. 5.82 per kWh. Further, for FY 2022-23 the Petitioner has estimated sales of 2158 MUs based on actual figures of FY 2020-21 and revised projections of FY 2021-22. Further, it is submitted that the impact of kVAh billing for HT/EHT revenue is more than envisaged in FY 2021-22, and the same has been considered in while estimating revenue of FY 2022-23, accordingly revenue for Rs. 1387 MUs has been estimated. Hence, due to increase in revenue estimated and reduction of sales estimated, the ABR of FY 2022- 23 comes to Rs. 6.42 per kWh, compared to approved ABR of FY 2021-22.

(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:57)(cid:76)(cid:72)(cid:90)(cid:29)

The Commission has determined the CSS for the FY 2022-23 based on the approved ARR. The Commission believes that the tariff should progressively reflect the cost of supply. The Commission while determining the tariff for FY 2022-23 has considered the prudent cost of the Petitioner and has accordingly determined the Open Access charges and tariff for each consumer category. The stakeholder may refer to the relevant Chapter for the detailed rationale.

2.2.4. Consideration of Tariff Policy while Computing Cross Subsidy

Surcharge (CSS)

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The Petitioner has not considered the proviso mentioned in the Tariff Policy to restrict the CSS to 20% of ABR in the Tariff Petitions. Such omission will restrict the ability of open access consumers to avail power to optimise their cost of power purchase

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ED-Goa submits that as per the provision of Section 42 (2) of the Electricity Act 2003, the cross-subsidy surcharge needs to be based on the current level of cross subsidy. Accordingly, the consumers who opted for Open Access need to be charged for the compensation of current level of cross subsidy which prevailed during that period and in order to avoid the burden of the same getting passed on to the other consumers who are with the Distribution Licensee. However, The Tariff Policy 2016 restricts Cross Subsidy Surcharge at 20% of the consumer tariff, this will result in lower CSS applicable than current level of cross subsidy leading to incomplete recovery of Cross Subsidy from Open Access consumers. In this process, Open Access consumers unduly get72 Order on ARR for FY 2022-23 to FY 2024-25 and Retail Tariff for the FY 2022-23 19 Electricity Department, Government of Goa OFFICIAL GAZETTE — GOVT. OF GOA Stakeholder Comments Joint Electricity Regulatory Commission (JERC) SERIES I No. 3 (EXTRAORDINARY No. 2) 27TH APRIL, 2022 benefited due to less cross subsidy surcharge and Industrial and commercial consumers who are subsidizing consumers, the more impact gets loaded onto the Industrial and commercial category, raising its tariff further.

Further, there is no such provision provided in JERC MYT Regulations or Open Access Regulations, therefore, in order to avoid burden on other consumers of ED-Goa, it has requested to the Commission to consider the current level of cross subsidy surcharge without any ceiling.

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The Commission has determined the CSS for the FY 2022-23 based on the approved ARR. The Commission while determining the tariff for FY 2022-23 has considered the prudent cost of the Petitioner and has accordingly determined the Open Access charges and tariff for each consumer category. The stakeholder may refer to the relevant Chapter for the detailed rationale.

2.2.5. Additional Surcharge on stranded power due to Open Access

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The Commission is requested to allow Additional Surcharge on stranded power due to Open Access, only when the same is demonstrated through data.

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ED-Goa submits that there are no such Open Access Consumers in the State of Goa and the same cannot be demonstrated with data.

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The suggestion of the Stakeholder is noted. The Petitioner is directed to submit a report on the quarterly details of power stranded for the last 3 years along with the Petition of Tariff Determination for FY 2023-24.

2.2.6. Computation of Additional Surcharge

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It is requested that the Commission may propose a scientific methodology for additional surcharge (eg: Gujarat, Telangana, etc.) which is also aligned with the Tariff Policy. The basic premise ought to be conclusive demonstration of stranded capacity on account of open access. In the absence of any open access, the question of stranded capacity on its account does not arise.

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ED-Goa submits that it shall be following any such methodology as approved by the Commission.

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The Additional Surcharge is determined in line with the Tariff Policy and the JERC MYT Tariff Regulations, 2021.

2.2.7. Fulfilment of RPO Obligations through IEX products

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IEX submitted that the Commission and the Petitioner may consider option to fulfil their RPO obligations by procuring RE power from short term market through Green-DAM and Green-TAM products available at IEX platform while assessing the power purchase of Discoms.

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The ED-Goa submits that it has taken a note of the suggestion of IEX and EDG is aware of the facilities available at IEX. The SLDC-Goa will take a call on real time basis as and when required. However, the quantum available at GTAM is very less and unpredictable and therefore we cannot rely fully on GTAM to optimise the cost of supply as per our requirement.

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2.2.8. Tariff Shock due to high revenue gap

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GCCI has mentioned in the FY 2024-25, the revenue gap (based on commercial accounting) is expected to be Rs.651 Crores (24% of ARR) which may lead to tariff Shock.

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ED-Goa submits that, as per the JERC MYT Regulations the ARR for the MYT Control Period FY 2022-23 to FY 2024-25 are projected. As per prevailing scenario, the projections were carried out for FY 2024-25, which may show the Revenue Gap of Rs.651 Cr. w.r.t revenue computed at the tariff proposed for FY 2022-23. However, (cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:68)(cid:80)(cid:72)(cid:3)(cid:76)(cid:86)(cid:3)(cid:86)(cid:88)(cid:69)(cid:77)(cid:72)(cid:70)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:69)(cid:72)(cid:3)(cid:85)(cid:72)(cid:89)(cid:76)(cid:86)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:72)(cid:86)(cid:83)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:182)(cid:86)(cid:3)(cid:36)(cid:53)(cid:53).

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The Commission has determined the Revenue gap for the FY 2022-23 based on the approved ARR. The Commission while determining the tariff for FY 2022-23 has considered the prudent cost of the Petitioner and has accordingly determined the tariff for each consumer category. The stakeholder may refer to the relevant Chapter for the detailed rationale.

2.2.9. High rate of return on equity

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GCCI has submitted that Return on equity is considered as 16% (Table 5.22). Norm for ROE was fixed in the earlier year of 2000, based on bank lending rate +3%. Currently, lending rate is less than 9% and hence ROE may be calculated at 11% or 12%. For a risk-free business with captive consumers, ROE of 11% is a reasonable return. Commission is requested to revise the same.

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EDG has considered Return on Equity is 16% per cent per annum as per the Regulations 28 of JERC MYT Regulations for MYT Control Period FY 2022-23 to FY 2024-25.

Quote

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accordanc(cid:72)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:53)(cid:72)(cid:74)(cid:88)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:21)(cid:26)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:83)(cid:88)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:88)(cid:86)(cid:72)(cid:15)(cid:3)(cid:68)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:68)(cid:87)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:86)(cid:76)(cid:91)(cid:87)(cid:72)(cid:72)(cid:81)(cid:3)(cid:11)(cid:20)(cid:25)(cid:12)(cid:3)(cid:83)(cid:72)(cid:85)(cid:3)(cid:70)(cid:72)(cid:81)(cid:87)(cid:3)(cid:83)(cid:72)(cid:85)(cid:3)(cid:68)(cid:81)(cid:81)(cid:88)(cid:80)(cid:17)(cid:180)(cid:3)

Unquote.

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The Commission has considered the rate of return on equity as per JERC MYT Regulations, 2021 for MYT Control Period from FY 2022-23 to FY 2024-25.

2.2.10. Formation of District Committee to help monitor loss reduction

measures

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GCCI has submitted that the AT&C loss is reported as 11.90% for FY 2021-22. This together with inter-state transmission loss of 3.35%, for WR and 7.95 for SR, total ATC loss works out to be 15.8%. Aggressive loss reduction to 9.85%is essential to avoid tariff shock. The loss reduction measures such as completion of 400 kV interstate line, associated 220 kV system and augmentation of intra state transmission and distribution lines are to be monitored and completed aggressively. Forming district committees as per section 166(5) of IE act 2003 will help in monitoring the same. The Commission is requested to recommend formation of District Committees.

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ED-Goa submits that the Commission may take appropriate decision on this matter. However, it is suggested that since Goa is a small state so formation of one co-ordination committee will be feasible and sufficient for entire state of goa.

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The suggestion of the stakeholder is noted.

2.2.11. Reduction in Electricity Duty

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The GCCI submitted that ED-Goa creates a fund by levy of Electricity Duty of Rs.0.70 per kWh towards capital expenditure. This amount is not fully utilised in any given year and carried over to the subsequent year.

Presently the kitty has nearly Rs. 1000 Cr.. It is requested that ED-Goa provide for interest on accrued fund and treat it as income. We request JERC to recommend Govt. of Goa to reduce Electricity Duty to Rs. 0.40 per kWh.

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Electricity Duty is basically the State Government tax levied by ED Goa as per Electricity Duty Act 1986. The Government of Goa collects Electricity Duty from all the Consumers of ED-Goa, through the electricity bill of the Consumers. Funds collected are utilised for various schemes for the development of Electrical infrastructure to ensure stability of power, development of project. Since the execution of projects takes time, funds collected during the year cannot be completely utilised in the respective year.

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The levy of Electricity Duty fund comes under the ambit of the Government of Goa. The Commission has no jurisdiction in the matter.

2.2.12. kVAh based Tariff for LT consumers

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GCCI submitted that, in FY 2021-22, ED-Goa adopted kVAh based billing instead of kWh based for HT Consumers. Its impact is nearly 12%. It is said that kVAh billing will be extended to LT consumers. Such a move will adversely impact economy. The tariff will indirectly increase by 10-12% as has happened in the HT Consumers who are in a position to implement corrective measure which may not be viable. We request the JERC to kindly drop any plans to extend the same for LT Consumers.

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ED-Goa has around 1 Lakh LT Commercial Consumers and 5,000 LT Industrial consumers. Some of the meters installed for these consumer categories are capable of recording kWh reading only. KVAh reading for the all the consumers can be obtained once the old meters are replaced with the Smart/ Prepaid meters. Hence at this stage it is not feasible to get ready for implementation of KVAh based tariff for LT Industrial and Commercial categories as it involves replacement of old Meter/high financial investment.

ED-Goa is in the process of installing smart meters and the Proof of Concept (PoC) for the Smart Meter has also been carried out successfully. The kVAh based billing will be carried out for LT Commercial and LT Industrial after installation of the Smart Meters and as per directions of the Commission.

Comm(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:57)(cid:76)(cid:72)(cid:90)(cid:29)

The Commission shall examine the matter of introducing kVAh tariff to LT consumers post installation of the Smart Meters.Appropriate decision shall be taken in line with the provisions of the Electricity Act, 2003, the prevalent Tariff Policy and the prevalent JERC MYT Regulations.

2.2.13. Reduction in delayed payment charges

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The GCCI submitted that incase the Electricity bills are not paid within the due date mentioned on the bill, delayed payment charges of two percent (2%) (Computed on daily basis on outstanding bill from the due date till date of payment) are levied on the bill amount. ED Goa proposes to continue to levy 2% per month (works out to be 27.1% per annum). Considering the current economic situation & prevailing bank interest rates of 8%,it is submitted to the JERC to reduce it to 0.5% per month cumulative which is below the working capital interest rate.

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ED-Goa submits that it has not proposed any changes in the rate of delayed payment charges in the instant petition. The delayed payment charges of 2% is accordance with the Tariff Order dated 19th May 2020 and as approved by Commission from time to time.

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The Commission has considered the suggestion and accordingly has reduced the late payment surcharge to 1.5% per month.

2.2.14. Tariff on Street lighting within a compound

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GCCI submitted that the Street lighting within a compound (residential complex, commercial complex etc) to be charged at residential, commercial, industrial rates etc on the basis of associated activity. Please avoid categorization of Street Lighting charges in residential Complex at Commercial rates.

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The EDG submits that the Street lighting within a compound of residential complex, commercial complex,etc.

are charged at the tariff as per the respective Category on the basis of associated activity only. In this regard, if the Consumer has any grievances, can approach the EDG.

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The stakeholder may (cid:81)(cid:82)(cid:87)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:72)(cid:87)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:85)(cid:72)(cid:86)(cid:83)(cid:82)(cid:81)(cid:86)(cid:72)(cid:17)

2.2.15. Consideration of Cold storage units as Agriculture allied Industry

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GCCI submitted that, it appears that cold storage units are purposely targeted at. Cold storage units provide 24 hrs base load with a flat load curve. It helps the utility. Cold Storage prevents wastage, extends shelf life, enhance export market. Cold Storage thus helps the economy. We kindly request that cold storage wherever it is located & used, to be considered as Agriculture allied Industry irrespective of the Sector. In this connection we are enclosing herewith the judgement of Maharashtra State Electricity Distribution Co. (MSEDCL) Consumer Grievance Redressal Forum Case No 05/2017.

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EDG submits that cold storage is billed as per the Rate Schedule and applicable tariff category approved by Commission in Tariff Order.

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The suggestion of the Stakeholder is noted. The Petitioner shall continue to charge the tariff rates as per the Tariff Schedule approved by the Commission.

2.2.16. Reliability linked tariff

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In general, the business plan is a well written document, without spelling out, area wise growth, reduction in losses and improvement in reliability.

There are initiatives like GIS substation, but it will be effective only if reliability of lines is nearly 100%. Even in Panaji, there are numerous tripping which will harm GIS operation. It is suggested to ED-Goa, to declare reliable distribution areas. A reliability linked tariff will be welcome step since consumers will save on diesel.

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ED, Goa has undertaken numerous initiatives for overall improvement of power system reliability in the state of Goa. This includes commission of new substations, conversion of overhead lines to underground system and conversion of existing conductor to High Amperage conductor. Anumber of new similar projects are also in pipeline and the same has been included in the Business Plan. However, Commission to take a view of tariff.

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The suggestion of the Stakeholder is noted.The Commission has determined the tariff for the FY 2022-23 based on the approved ARR and as per the JERC MYT Regulations, 2021.Further, the Commission in the Business Plan Order dated 31st March 2022.has also prescribed targets of reliability indices for the 3rdMYT Control Period.

2.2.17. Pumped Hydro Storage Systems (PHSS)

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The high peak power due to growth in tourism, will be a huge challenge for peak power procurement. Pumped hydro storage is a green power, matured, cost effective technology for energy storage. PHSS works by storing energy in water in an upper reservoir, pumped from second reservoir at a lower elevation when there is excess power in the system. When there is demand for energy the water in the upper reservoir is released and as it falls it rotates turbines that generate power. A consultant may be appointed to study the possibility of developing pumped hydro storage systems in goa.

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No such initiatives are to be taken in near future by Government of Goa. Further, the Pumped Hydro storage Systems are Capital intensive projects are only used for Supporting the Grid during the Peak power compensation. ED Goa is trying to sign innovative PPAs with additional support during peak hours.

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2.2.18. Low standards of O&M practices

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The GCCI has submitted that the maintenance & Construction standards of ED are well below benchmark standards. There is no proper supervision & inspection during erection & thereafter left to the local linesman to do temporary jobs. The quality of the material/equipment also play a major role in the failures. Open distribution boxes, broken hinges, undresses wires, tilted poles, unclean insulators sparking are common occurrences. The ED should have strict material inspection facility & also carryout preventive maintenance on a regular basis. ED is already using SAP. There is a Plant Maintenance (PM) module which can be used. The repair history, material equipment used, causes of failure & remedial action taken can be updated which will help in cutting down failure rates.

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There has been a substantial improvement in regard to the Reliability Indices and the losses in regard to the Distribution Network of ED, Goa. The figures indicate improved O&M practices. The Plant Maintenance Module of SAP is made operational for carrying out periodic O&M works related to feeders and transformers.

Nodal officers at the level of Junior Engineer are appointed for each project and the projects are directly monitored by the Office of the Superintending Engineer of the concerned circles. Quality Inspector is appointed to carry out surprise checks whilst execution of the project. Further, RECPDCL has been appointed as PMC for supervision of major projects carried out by ED, Goa. Their scope includes approving of GTP/drawings, inspection of material and supervision of onsite works.

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The suggestion of the Stakeholder is noted. The Stakeholder may also (cid:81)(cid:82)(cid:87)(cid:72)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:51)(cid:72)(cid:87)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3) (cid:85)(cid:72)(cid:86)(cid:83)(cid:82)(cid:81)(cid:86)(cid:72)(cid:17)Further, the Commission has already notified SOP Regulations providing limits/timelines for various individual /overall Standard of Performance.

2.2.19. Analyzing metering data

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ED-(cid:42)(cid:82)(cid:68)(cid:3)(cid:68)(cid:79)(cid:85)(cid:72)(cid:68)(cid:71)(cid:92)(cid:3)(cid:75)(cid:68)(cid:86)(cid:3)(cid:80)(cid:72)(cid:87)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:87)(cid:3)(cid:39)(cid:55)(cid:38)(cid:182)(cid:86)(cid:17)(cid:3)(cid:43)(cid:82)(cid:90)(cid:72)(cid:89)(cid:72)(cid:85)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:68)(cid:87)(cid:68)(cid:3)(cid:68)(cid:89)(cid:68)(cid:76)(cid:79)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:76)(cid:86)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:68)(cid:81)(cid:68)(cid:79)(cid:92)(cid:86)(cid:72)(cid:71)(cid:17)(cid:3)(cid:53)(cid:72)(cid:83)(cid:88)(cid:87)(cid:72)(cid:71)(cid:3)(cid:44)(cid:81)(cid:86)(cid:87)(cid:76)(cid:87)(cid:88)(cid:87)(cid:72)(cid:86)(cid:3)(cid:79)(cid:76)(cid:78)(cid:72)(cid:3)(cid:42)(cid:82)(cid:68)(cid:3) Institute of Management can be roped in to analyse the data based on which suggestions for improvement, mismatch in supply & distribution, consumption,etc can be obtained.

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The data available through Automated Meter Reading (AMR) instrument located at each DTC is made available in the Meter Data Management (MDM) system. The data is periodically analysed for checking the loading trend of the DTC, balancing of the load, losses, lower PF cases, etc.

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2.2.20. Audit of Annual Accounts

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GCCI submitted that they congratulate the current CEE for following up & completing the ED Goa Accounts up to 2018. They were pending since FY 2012 onwards. Without audit no accounts can be verified. We understand the Audit is currently on by CAG. We request that the accounts be bought upto date so that the exact figures can be made public. We are sure that this will be completed by the current CEE.

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ED-Goa submits that once the audit of accounts for FY 2017-18 to FY 2019-20 is completed, the respective details will be submitted to the public. Drafting of provisional accounts for FY 2020-21 is in process, upon completion the same will be submitted for CAG audit.

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The Commission directs the Petitioner to complete the audit of accounts up to FY 2020-21 and submit the same to the Commission along with True-up Petition within 3 months of the issuance of this Order. Further, the audit of FY 2021-22 should be completed and submitted to the Commission along with True-up Petition while filing the Tariff Petition for FY 2023-24.

2.2.21. Periodicaleducation of customers

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GCCI submitted that ED-Goa should include periodical education of Customers on issues like connected load, procedures, Energy Efficiency for flattening of load curve. Plan may include this aspect.

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EDG submits that, continuous efforts are being taken in creating awareness and educating the people and future generations through various modes and methods provided in the following:

(cid:120) Launching of Energy Conservation Mobile Van. The movable mobile Van hired for publicity consisting of a structure with message on Energy Conservation tips through a banner was conveyed to teachers and students of Government High Schools/KendriyaVidhyalayas/JawaharNavodayaVidhyalayas across entire state of Goa and also energy conservation awareness material i.e. poster/sticker to schools was distributed.

(cid:120) Creation of Energy Clubs by encouraging participation of young children in energy efficiency movement on Energy Saving/Conservation in Government High Schools including KendriyaVidyalayas, JawaharNavodaya Schools which will be selected for Model Energy Efficient Schools in the State of Goa. The Work Order has been issued to M/s LILA Digital & Environmental Solutions Pvt. Ltd. on 08/09/2020. The agency has completed online training sessions in all the 25 schools. Balance work is in progress.

(cid:120) Conversion of 16 nos. of Government high Schools including 5 nos. of KendriyaVidyalayas and 2 nos. of JawaharNavodayaVidyalaya to Model Energy Efficient Schools. The Work Order has been issued to M/s Energy Efficiency Services Limited, New Delhi on 21/09/2020 and the work is completed.

(cid:120) Conversion of Government High School, Dona Paula to Model Energy Efficient School by replacing all existing conventional appliances as a pilot project. The Work Order had been issued to M/s Energy Efficiency Services Limited, New Delhi on 26/08/2020 and the work is completed.

(cid:120) Organized Energy Conservation Week programme at Institute Menezes Braganza Conference Hall on 21/12/2021, the programme included Training to Government High

(cid:120) Schools/KendriyaVidhyalayas/JawaharNavodayaVidhayala Teachers w.r.t. Energy Clubs, quiz Competition for finalists, Awareness/Interactive session on Energy Conservation Building Code and Painting and quiz competition prize distribution to students w.r.t. Energy Clubs.

(cid:120) Work of Implementation of DSM based Efficient Lighting Programme in the State of Goa by providing 3 nos. of 7W/9W LED Bulbs to each Registered Domestic Consumer of GED at free of cost as a step towards energy conservation. Distributed of 8,04,735 nos. of 9W LED Bulbs to 2,68,245 nos. of Consumers with estimated saving of 106 MUs of annually.

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2.2.22. Continuous Staff training, Long-term solution for power

interruption and improvement of distribution efficiency

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Continuous training of engineers, Managers and administrative staff is essential. About 2% of HR expenses may be allocated to the same. There are numerous short duration transient failures & some failures in the

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EDG submits the reply in three parts provided in the following:

Training: The ED, Goa Training Centre at Ponda has been made fully functional and carries out periodic training for Technical and Clerical staff. Some of these trainings are carried out in association with reputed80 Order on ARR for FY 2022-23 to FY 2024-25 and Retail Tariff for the FY 2022-23 27 Electricity Department, Government of Goa OFFICIAL GAZETTE — GOVT. OF GOA Stakeholder Comments Joint Electricity Regulatory Commission (JERC) SERIES I No. 3 (EXTRAORDINARY No. 2) 27TH APRIL, 2022 organizations such as RECL, NTPI and NTPC. Hands on training is also provided by reputed OEM for O&M staff. Trainings related to Safety such as Safe Practices, Use of PEEs, etc. are also provided.

Root Cause Analysis and long-term effective solution: The major cause of power interruption is due to falling of trees / branches on the overhead lines especially during the monsoon season. Further, the existing overhead system is aged and the frequent snapping of the lines causes further deteriorations effecting power supply reliability severely. The Departments has taken up numerous projects for conversion of overhead network to under ground system across the state of Goa to include major cities and towns and also hinterlands and the coastal belts. The projects are under various stage of completions.

HV Distribution: The HV Distribution is for High Load concentrated areas wherein independent transformer is installed to supply large number of consumers located at one location. The system avoids use of long LT lines thereby reducing losses and changes of theft. The system is ideal for Metro cities wherein large cluster of consumers are located very closely. In Goa, individual transformers are provided for multi consumers complexes and single dwelling consumers are supplied through 11/0.433 KV Distribution transformer of requisite ratings.

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3. Chapter 3: True-up of the FY 2017-18,

FY 2018-19, FY 2019-20 and FY 2020-

21

3.1. Applicable provisions

The True-up of FY 2017-18 and FY 2018-19 are to be carried out as per Regulation8 (2) of the JERC MYT Regulations, 2014:

(cid:179)8. Annual Review of Performance and True-up

(cid:171)

(2)After audited accounts of a year are made available, the Commission shall undertake similar exercise as

above with reference to the final actual figures or the provisional actual accounts as available as per the

audited accounts. This exercise with reference to audited accounts shall be called 'Truing Up'.

The Truing Up for any year will ordinarily not be considered after more than one year of 'Review'.

(3)The revenue gap/surplus, if any, of the ensuing year shall be adjusted as a result of review and truing up

exercises.

(4)While approving such expenses/revenue to be adjusted in the future years as arising out of the Review

and/or Truing up exercises, the Commission may allow the carrying costs as determined by the Commission

of such expenses/revenue. Carrying costs shall be limited to the interest rate approved for working capital

borrowings.

(5)For any revision in approvals, the licensee would be required to satisfy the Commission that the revision is

due to conditions beyond its control.

(6)In case additional supply is required to be made to any particular category, the licensee may, any time

during the year make an application to the Commission for its approval. The application will demonstrate the

need for such additional supply of power and also indicate the manner in which the licensee proposes to meet

the cost for such additional supply of power.(cid:180)

Further, the True-up of FY 2019-20 and FY 2020-21 are to be carried out as per Regulation11 of the JERC MYT Regulations, 2018:

(cid:179)11. Annual Performance Review, Truing-up and tariff determination during the Control

Period

11.1 The Generating Company, Transmission Licensee and Distribution Licensee shall be subject to

annualperformance review and truing up of expenses and revenue during the Control Period in accordance

withthese Regulations.

11.2 The Generating Company, Transmission Licensee andDistribution Licensee shall file an application

fortheannual performance review of the current year,truing up of the previous Year or the Year for which

theaudited accounts are available and determination of tariff for the ensuing Yearon or before 30thNovember

ofeach Year, in formats specified by the Commission from time to time:

Provided that the Generating Company, Transmission Licensee or Distribution Licensee, as the case may

be,shall submit to the Commission information in such form as may be specified by the Commission,

togetherwith the audited accounts, extracts of books of account and such other details as the Commission may

requireto assess the reasons for and extent of any variation in financial performance from the approved

forecast ofAggregate Revenue Requirement and Expected Revenue from Tariff and Charges.

11.3 The scope of the annual performance review, truing up and tariff determination shall be a comparison of

theperformance of the Generating Company, Transmission Licensee or Distribution Licensee with the

approvedforecast of Aggregate Revenue Requirement and Expected Revenue from Tariff and Charges and

shallcomprise of the following:

a) True-up: a comparison of the audited performance of the Applicant for the Financial Yearfor which

thetrue up is being carried out with the approved forecast for such previous Financial Year, subject to

theprudence check;

(cid:171)(cid:171)(cid:171)(cid:17)(cid:180)

3.2. Approach for the True-up of the FY 2017-18, FY 2018-19, FY

2019-20 and FY 2020-21

(cid:51)(cid:72)(cid:87)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:86)(cid:88)(cid:69)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:29)

The Petitioner has not submitted the True-Up Petition for FY 2017-18, FY 2018-19, FY 2019-20 and FY 2020- 21. Further, the Petitioner has submitted that that audit works is in progress for FY 2017-18 by CAG. The accounts for FY 2018-19 and FY 2019-20 are completed and submitted to CAG, the process of auditing is yet to start. Further the accounts of FY 2020-21 will be finalized by ED-Goa by 31stDecember 2021 and the same will be submitted to CAG for auditing purposes.

(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:68)(cid:81)(cid:68)(cid:79)(cid:92)(cid:86)(cid:76)(cid:86)(cid:29)

The Commission in its previous Orders had stressed upon the requirement of the audited accounts to reflect the true picture and bring in accuracy in the estimates made by the Commission. The JERC MYT Regulations, 2014and JERC MYT Regulations, 2018 also require the licensee to file the True up along with the audited accounts in the filing.

The Commission reiterates its direction to the Petitioner to prepare and submit the audited accounts for FY 2017-18, FY 2018-19, FY 2019-20 and FY 2020-21based on commercial principles along with the True-up Petitions by 30thNovember 2022.

The True-up would therefore be taken up only after submission of the audited accounts. Accordingly, the Commission has decided not to take up True-up for FY 2017-18, FY 2018-19, FY 2019-20 and FY 2020-21 in the current Order.

4. Chapter 4: Annual Performance

Review of FY 2021-22

4.1. Applicable Provisions and Background

The MYT Order for each year of the Control Period fromFY 2019-20 to FY 2021-22 was issued by the Commission on 20th May 2019 approving the Aggregate Revenue Requirement (ARR) and tariff for the FY 2019-20. The ARR for FY 2021-22 was further revised and the tariff for FY 2021-22 was approved by the Commission in its Tariff Order dated by the Commission in its Tariff Order dated 30th March 2021. The Annual Performance Review for the FY 2021-22 is to be carried out in accordance with the Regulation 11 of the JERC MYT Regulations 2018:

(cid:179)11. Annual Performance Review, Truing-up and tariff determination during the Control

Period

11.1 The Generating Company, Transmission Licensee and Distribution Licensee shall be subject to

annualperformance review and truing up of expenses and revenue during the Control Period in accordance

withthese Regulations.

11.2 The Generating Company, Transmission Licensee andDistribution Licensee shall file an application

fortheannual performance review of the current year,truing up of the previous Year or the Year for which

theaudited accounts are available and determination of tariff for the ensuing Yearon or before 30 thNovember

ofeach Year, in formats specified by the Commission from time to time:

Provided that the Generating Company, Transmission Licensee or Distribution Licensee, as the case may

be,shall submit to the Commission information in such form as may be specified by the Commission,

togetherwith the audited accounts, extracts of books of account and such other details as the Commission may

requireto assess the reasons for and extent of any variation in financial performance from the approved

forecast ofAggregate Revenue Requirement and Expected Revenue from Tariff and Charges.

11.3 The scope of the annual performance review, truing up and tariff determination shall be a comparison of

theperformance of the Generating Company, Transmission Licensee or Distribution Licensee with the

approvedforecast of Aggregate Revenue Requirement and Expected Revenue from Tariff and Charges and

shallcomprise of the following:

(cid:171)

b) Annual Performance Review: a comparison of the revised performance targets of the Applicant for

thecurrent Financial Year with the approved forecast in the Tariff Order corresponding to the Control

Periodfor the current Financial Year subject to prudence check;

(cid:171)(cid:171)(cid:171)(cid:17)(cid:180)

4.2. Approach for the Review for the FY 2021-22

(cid:51)(cid:72)(cid:87)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:86)(cid:88)(cid:69)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:29)

The Petitioner has submitted the APR of FY 2021-22 based on the actual performance during the H1 (April- September 2021) of the year and the revised estimates for H2 (Oct0ber - March 2022) of the year. The projections for H2 of FY 2021-22 are arrived at by expected escalation over performance of H1.

Commi(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:68)(cid:81)(cid:68)(cid:79)(cid:92)(cid:86)(cid:76)(cid:86)(cid:29)

The Commission for the purpose of estimating the energy demand of the State sought the information of month-wise historical sales, number of consumers and connected load of the from FY 2017-18 toFY 2021-22(tillOrder on ARR for FY 2022-23 to FY 2024-25 and Retail Tariff for the FY 2022-23 31 Electricity Department, Government of Goa 84 OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 3 (EXTRAORDINARY No. 2) 27TH APRIL, 2022 APR of FY 2021-22 Joint Electricity Regulatory Commission (JERC) H1) from the Petitionerin the first Deficiency Note dated 28th January 2022. Various anomalies and gaps were

observed in the data provided.

APR of FY 2021-22 Joint Electricity Regulatory Commission (JERC)

In addition to the issues in respect of commercial data such as sales, number of consumers, connected load and H1) from the Petitionerin the first Deficiency Note dated 28th January 2022. Various anomalies and gaps were power purchase, the Commission observes that due to the unavailability of audited annual accounts for FY observed in the data provided. 2017-18, FY 2018-19, FY 2019-20 and FY 2020-21, it is difficult to ascertain the accuracy of the data in respect In addition to the issues in respect of commercial data such as sales, number of consumers, connected load and of capital expenditure and capitalisation during this period thereby leading to unreliable estimates of ARR power purchase, the Commission observes that due to the unavailability of audited annual accounts for FY parameters. 2017-18, FY 2018-19, FY 2019-20 and FY 2020-21, it is difficult to ascertain the accuracy of the data in respect

of capital expenditure and capitalisation during this period thereby leading to unreliable estimates of ARR Therefore, the Commission believes that it is not prudent to approve the revised power purchase requirement parameters. and revenue from retail sale on the basis of the unreliable information presently available. Therefore, the Therefore, the Commission believes that it is not prudent to approve the revised power purchase requirement Commission shall consider the actual performance at the time of the True-up of the FY 2021-22 once the and revenue from retail sale on the basis of the unreliable information presently available. Therefore, the audited accounts are submitted by the Petitioner. Commission shall consider the actual performance at the time of the True-up of the FY 2021-22 once the audited accounts are submitted by the Petitioner. Accordingly, the Commission has decided not to undertake the Annual Performance Review of the FY 2021-22. Accordingly, the Commission has decided not to undertake the Annual Performance Review of the FY 2021-22. The Commission directs the Petitioner to submit the True-up of FY 2021-22 and the APR of FY 2022-23 based The Commission directs the Petitioner to submit the True-up of FY 2021-22 and the APR of FY 2022-23 based on reliable data by 30th November 2022. on reliable data by 30th November 2022.

Order on ARR for FY 2022-23 to FY 2024-25 and Retail Tariff for the FY 2022-23 32 Electricity Department, Government of Goa85 ARR for the 3rd MYT Control Period Joint Electricity Regulatory Commission (JERC) OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 3 (EXTRAORDINARY No. 2) 27TH APRIL, 2022

5. Chapter 5: Determination of

Aggregate Revenue Requirement for

the 3rdMYT Control Period

5.1. Background

In this Chapter, the Commission has determined the Aggregate Revenue Requirement (ARR) for the 3rd MYT Control Period. The determination of Aggregate Revenue Requirement has been done in accordance with the JERC MYT Regulations, 2021.

5.2. Approach for determination of ARR for each year of the 3rd

MYT Control Period

The Commission has computed the individual elements constituting the Aggregate Revenue Requirement for each year based on figures approved in the Business Plan Order dated 31st March 2022 and the provisional information of various parameters for the previous financial years. The ARR has been determined for each financial year of the 3rd Control Period whereas the revenue at existing tariff is determined only for the FY 2022-23 to arrive at the revenue gap/surplus for the FY 2022-23.

5.3. Projection of Number of consumers, Connected Load and

Energy Sales

(cid:51)(cid:72)(cid:87)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:54)(cid:88)(cid:69)(cid:80)ission

The Petitioner has considered the same number of consumers, connected load and energy sales as proposed by the Petitioner in the Business Plan.

Table 6: Category-wise number of consumers proposed by the Petitioner for 3rdMYT Control

Period

Table 7: Category-wise connected load (kW) proposed by the Petitioner for 3rd MYT Control

Period

Table 8: Category-wise energy sales (MUs) proposed by the Petitioner for 3rd MYT Control

Period

(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:68)(cid:81)(cid:68)(cid:79)(cid:92)(cid:86)(cid:76)(cid:86)

The Commission in the Business Plan Order dated 31st March 2022 had estimated the category wise energy sales, number of consumers and connected load based on historical trends. The detailed methodology has been discussed in the Business Plan Orderfor the 3rd MYT Control Period. The Commission retains the same energy sales, connected load and number of consumers as approved in the Business Plan.

Table 9: Category-wise number of consumersapproved by the Commission for 3rdMYT Control

Period

Table 10: Category-wise connected load (kW) approved by the Commission for 3rdMYT Control

Period

Table 11: Category-wise energy sales (MU) approved by the Commission for 3rd MYT Control

Period

5.4. Inter-State transmission loss

(cid:51)(cid:72)(cid:87)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:54)(cid:88)(cid:69)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)

The Petitioner had submitted Inter-State Transmission Losses for the 3rdMYT Control Periodin its Business Plan Petition as follows:

Table 12: Inter-state transmission losses considered by the Petitioner for FY 2021-22 and the

3rd MYT Control Period

(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:68)(cid:81)(cid:68)(cid:79)(cid:92)(cid:86)(cid:76)(cid:86)

The Commission accepts the projections submitted by the Petitioner. The same shall be revised based on actuals during the truing up of the respective years as per respective Regulations.The following table provides the Inter-State Transmission Losses approved by the Commission for the 3rd MYT Control Period:

5.5. Intra-State Transmission &Distribution (T&D) Losses

(cid:51)(cid:72)(cid:87)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:54)(cid:88)(cid:69)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)

The Petitioner has submitted Intra-State Distribution Losses for the 3rd MYT Control Period as submittedin the Business Plan Petition, which are as follows:

(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:68)(cid:81)(cid:68)(cid:79)(cid:92)(cid:86)(cid:76)(cid:86)

The Commission has approved the same Intra-State T&D losses approved in Business Plan of3rd MYT Control Periodin Order dated 31st March 2022.

5.6. Power Purchase Quantum & Cost

Petitioners Submission

1. Power Purchase Quantum

The power purchase quantum for the Control period has been considered as the quantum projected by the petitioner in Business Plan petition for FY 2022-23 to FY 2024-25.The Petitioner has projected the net power purchase quantum for the MYT Control period, as 4,548MU, 4,582 MU and 4,834 MU for FY 2022-23, FY 2023-24, FY 2024-25respectively.

2. Power Purchase Cost

The Petitioner has submitted in Business Plan petition, EDG had submitted the power purchase procurement plan along with power purchase cost. Following assumptions have been considered for projecting the cost of power purchase:

Fixed Charges:The Petitioner has submitted that the Fixed costs for the Control Periodhas still not been issued by CERC for most of the Plant, therefore,the Petitioner has considered actual fixed charges paid to the plant in Q1 of FY 2021-22 and extrapolated them to arrive at the revised projections of base year FY 2021-22 for respective Central Generating Stations. Further, projection of fixed charged for the Control Period has been done, considering the CAGR of past 3 yrs of each plant, with a cap of 5% for the Control Period.

Variable Charges:The Petitioner has considered the actual per unit variable costs of FY 2021-22 Q1 and has calculated the revised projections of base year FY 2021-22 w.r.t to power purchase projections for respective Central Generating Stations. Further, year on year projections has been done by considering 3 year CAGR on energy charges for each plant, with an escalation cap of 5% for purpose of estimation of the variable charges for the control period. Escalation % with negative CAGR are considered to be NIL.

Solar and Non-solar:The Petitioner has considered the rates as per the PPAfor the entire Control Period from FY 2022-23 to FY 2024-25 without any escalation. Further, to fulfil the RPO compliance, the deficit renewable power as per RPO is compensated by procuring renewable power (Solar and Non-Solar) from the Short-Term Market. The Petitioner has considered the market rates as per the actuals of Q1 FY 2021-22 for the base year FY 2021-22 and also for the entire Control Period from FY 2022-23 to FY 2024-25 without any escalation.

The Petitioner has submitted that it has been procuring power from the Renewable Sources where 6 MW Solar Power is procured from NVVNL and 25 MW from SECI to meet its RPO obligations. The NVVNL tie-up will be till FY 22-23 only (4 or 5 months). Hence, power purchase from NVVNL has been considered in revised projections of FY 2021-22 and FY 2022-23 upto August only. Power Purchase from SECI has been considered as 48 MU as per the PPA and the entire control period.

The Petitioner has submitted that any shortfall (if any) and to fulfil the Solar RPO obligation, EDG shall purchase power through short term (Traders) through DEEP portal, GTAM.

In order to meet its Non- solar RPO, the Petitioner has submitted that it would be procuring power during MYT control period through short term on DEEP portal. The Petitioner has also submitted that it is also procuring 2 MUs (for FY 2024-25 it is 0.5 MUs) every year from Hindustan Waste Energy Ltd and the same has been envisaged to buy during the entire control period. Further, the Petitioner has also tied up with SECI Tranche II 50 MW Wind power and procuring the power at a rate of Rs. 2.72/unit plus trading margin of Rs. 0.07/kWh at goa periphery.

The Petitioner has submitted that no upcoming power purchase planned from the thermal generating stations.

It has planned the tie-ups of Renewable energy both outside and within the state during the control period to meet its RPO obligations.

Apart from the above sources, the Petitionershall purchase power in Short-term from exchanges or Traders or DEEP portal to fulfil its peak requirements. Further, the Petitionermay sell surplus available during off-peak hours and would indulge in banking or sale of power in exchanges in the real time basis

Transmission Charges:The Petitioner has considered the actual transmission charges for H1 of FY 2021-22 and calculated the transmission charges per unit for PGCIL. The same per unit rate has been considered for computation of Transmission charges for the control period without any escalations

The total power purchase quantum and cost for each year of the MYT control period is as under:

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F E94 OFFICIAL GAZETTE — GOVT. OF GOA ARR for the 3rd MYT Control Period Joint Electricity Regulatory Commission (JERC) SERIES I No. 3 (EXTRAORDINARY No. 2) 27TH APRIL, 2022

(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:68)(cid:81)(cid:68)(cid:79)(cid:92)(cid:86)(cid:76)(cid:86)

5.6.1. Power Purchase Quantum

The power purchase quantum for the 3rd Control Period was approved in the Business Plan Order dated 31st March 2022. The approved power purchase quantum is given in the following table:

Table 17: Power purchase quantum at state periphery approved by the Commission for the 3rd

Control Period

5.6.2. Power Purchase Cost

The Commission has computed the power purchase cost for the 3rd MYT Control Period based on the following assumptions:

Variable Charges:

The variable charges for the existing plants have been considered based on the provisional actual cost submitted by the Petitioner for FY 2020-21. For Central generating Stations, the Commission has considered an annual escalation of 4% on the actual variable costs of the FY 2020-21, for each year from FY 2022-23to FY 2024-25.

For the remaining plants, the Commission has accepted the variable charges submitted by the Petitioner.

Fixed Charges:

The fixed charges for the existing plants have been considered based on the actual cost submitted by the Petitioner for FY 2020-21. For Central generating Stations, the Commission has considered an annual escalation of 2% on the actual fixed costs of the FY 2020-21, for each year from FY 2022-23to FY 2024-25. For the remaining plants, the Commission has accepted the fixed charges submitted by the Petitioner.

Other Charges:

Other charges have not been considered for the 3rd MYT Control Period. The same shall be considered as per actuals during the true-up of the respective years of the 3rd MYT Control Period.

5.6.3. Transmission Charges

The Commission has projected the transmission charges payable to PGCIL based on the total capacity of the transmission network allocated to the Petitioner. The transmission charges are determined based on the latest quarterly Point of Connection (PoC) rates approved by the Central Electricity Regulatory Commission (CERC).

5.6.4. Total power purchase quantum and cost

The power purchase cost approved by the Commission forthe 3rd MYT Control Period have been shown in the following tables:

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The Average Power Purchase Cost (APPC) for the FY 2022-23 has been determined as provided in the table below. The APPC has been computed at the UT Periphery excluding the transmission charges and cost of purchase of renewable energy. The Petitioner shall use the same for the purpose of compensation/ payment of surplus power at the end of each settlement period in case of Solar Net-metering consumers.

The Commission approves the Average Power Purchase Cost (APPC) as INR3.26/ kWh for the

FY 2022-23 for the purpose of compensation/payment for excess generation for prosumers.

5.6.5. Energy Balance

(cid:51)(cid:72)(cid:87)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:54)(cid:88)(cid:69)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)

The Petitioner has submitted the energy balance as shown in the following table:

(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:68)(cid:81)(cid:68)(cid:79)(cid:92)(cid:86)(cid:76)(cid:86)

Based on the Energy sales, Power Procurement and Inter & Intra-State Loss as approved above the Energy Balance for the 3rd MYT Control Period has been shown in following table:

5.6.6. Renewable Purchase Obligation

(cid:51)(cid:72)(cid:87)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:54)(cid:88)(cid:69)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81):

The Petitioner has submitted it envisages to meet its RPO obligation through purchase of physical renewable power and may even exceed the RPO obligations as cheap power is available in the market, in comparison to the conventional sources. Further, for the upcoming Control Period, since the Commission has not yet approved any trajectory, ED-Goa has assumed a 1% increase in Solar and Non-Solar RPO every year and has accordingly considered the projections for RPO fulfilment. Further, after considering all the proposed tied-up renewable energy, ED-Goa proposes to meet any shortfall to fulfil the RPO obligation, through purchase from short term (Traders) through DEEP portal and GTAM. For projection of ED-Goa does not plan to buy any REC during the upcoming MYT Control Period. Accordingly, the Petitioner has submitted its RPO plan for FY 2021-22 and the upcoming Control Period as follows:

(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:68)(cid:81)(cid:68)(cid:79)(cid:92)(cid:86)(cid:76)(cid:86):

The Commission has approved the Renewable Purchase Obligation (RPO) for the 3rd Control Period considering the JERC (Procurement of Renewable Energy) Regulations, 2010, as amended from time to time.

The cumulative backlog of solar and non-solar compliance up to FY 2020-21 has been considered as per the (cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3) (cid:50)(cid:85)(cid:71)(cid:72)(cid:85)(cid:3) (cid:82)(cid:81)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:54)(cid:88)(cid:82) Moto Petition No. 61/2012 dated 5th July 2021. The solar and non-solar compliance for FY 2021-22 is considered as per the RPO compliance approved in the Tariff Order for FY 2021- 22 dated 30th March 2021. Accordingly, the RPO approved by the Commission for the 3rd MYT Control Period is as follows:

Table 23: Renewable Purchase Obligation (RPO) approved by the Commission for 3rd MYT

Control Period

5.7. Operation & Maintenance Expenses

The Operation & Maintenance Expenses comprise of the Employee Expenses, Administrative and General Expenses (A&G) and the Repair & Maintenance Expenses (R&M). Regulation 61 of the JERC MYT Regulation, 2021 states the following:

(cid:179)61.1 The Operation and Maintenance Expenses for the Retail Supply Business shall be computed

inaccordance with this Regulation.

61.2 O&M Expenses shall comprise of the following:

a) Employee expenses - salaries, wages, pension contribution and other employee costs;

b) Administrative and General expenses including insurance charges if any; and

c) Repairs and Maintenance expenses.

61.3 The Licensee shall submit the required O&M expenses for the Control Period as a part of MultiYear Tariff

Petition. O&M expenses for the base Year shall be approved by the Commissiontaking into account the latest

available audited accounts, business plan filed by the DistributionLicensee, estimates of the actuals for the

Base Year, prudence check and any other factorsconsidered appropriate by the Commission.

61.4 O&M expenses for the nth Year of the Control Period shall be approved based on the formulagiven below:

O&Mn = (R&Mn + EMPn + A&Gn) x (1 - Xn) + Terminal Liabilities

Where,

R&Mn = K x GFAn-1 x (1+WPIinflation)

EMPn = (EMPn-1) x (1+Gn) x (1+CPIinflation)

A&Gn = (A&Gn-1) x (1+CPIinflation)

(cid:181)(cid:46)(cid:182)(cid:3) (cid:76)(cid:86)(cid:3) (cid:68)(cid:3) (cid:70)(cid:82)(cid:81)(cid:86)(cid:87)(cid:68)(cid:81)(cid:87)(cid:3) (cid:11)(cid:72)(cid:91)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:72)(cid:71)(cid:3) (cid:76)(cid:81)(cid:3) (cid:8)(cid:12)(cid:17)(cid:3) (cid:57)(cid:68)(cid:79)(cid:88)(cid:72)(cid:3) (cid:82)(cid:73)(cid:3) (cid:46)(cid:3) (cid:73)(cid:82)(cid:85)(cid:3) (cid:72)(cid:68)(cid:70)(cid:75)(cid:3) (cid:60)(cid:72)(cid:68)(cid:85)(cid:3) (cid:82)(cid:73)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:38)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:3) (cid:51)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:3) (cid:86)(cid:75)(cid:68)(cid:79)(cid:79)(cid:3) (cid:69)(cid:72)(cid:71)(cid:72)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:72)(cid:71)(cid:3) (cid:69)(cid:92)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3)

(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3) (cid:76)(cid:81)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:48)(cid:88)(cid:79)(cid:87)(cid:76)(cid:3) (cid:60)(cid:72)(cid:68)(cid:85)(cid:3) (cid:55)(cid:68)(cid:85)(cid:76)(cid:73)(cid:73)(cid:3) (cid:50)(cid:85)(cid:71)(cid:72)(cid:85)(cid:3) (cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3) (cid:82)(cid:81)(cid:3) (cid:47)(cid:76)(cid:70)(cid:72)(cid:81)(cid:86)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3) (cid:73)(cid:76)(cid:79)(cid:76)(cid:81)(cid:74)(cid:15)(cid:69)(cid:72)(cid:81)(cid:70)(cid:75)(cid:80)(cid:68)(cid:85)(cid:78)(cid:76)(cid:81)(cid:74)(cid:3) (cid:82)(cid:73)(cid:3) (cid:85)(cid:72)(cid:83)(cid:68)(cid:76)(cid:85)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3)

maintenance expenses, approved repair and maintenance expensesvis-à-vis GFA approved by the

Commission in past and any other factor considered appropriateby the Commission;

CPIinflation (cid:177) is the average increase in Consumer Price Index (CPI) for immediately precedingthree (3)

Years before the base Year;

WPIinflation (cid:177) is the average increase in the Wholesale Price Index (CPI) for immediatelypreceding three (3)

Years before the base Year;

EMPn (cid:177) Employee expenses of the Distribution Licensee for the nth Year;

A&Gn (cid:177) Administrative and General expenses of the Distribution Licensee for the nth Year;

R&Mn (cid:177) Repair and Maintenance expenses of the Distribution Licensee for the nth Year;

GFAn-1 (cid:177) Gross Fixed Asset of the Distribution Licensee for the n-1th Year;

Xn is an efficiency factor for nth Year. Value of Xn shall be determined by the Commission in theMulti Year

(cid:55)(cid:68)(cid:85)(cid:76)(cid:73)(cid:73)(cid:3)(cid:50)(cid:85)(cid:71)(cid:72)(cid:85)(cid:3)(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:47)(cid:76)(cid:70)(cid:72)(cid:81)(cid:86)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)(cid:73)(cid:76)(cid:79)(cid:76)(cid:81)(cid:74)(cid:15)(cid:3)(cid:69)(cid:72)(cid:81)(cid:70)(cid:75)(cid:80)(cid:68)(cid:85)(cid:78)(cid:76)(cid:81)(cid:74)(cid:15)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:89)(cid:72)(cid:71)(cid:3)(cid:70)(cid:82)(cid:86)(cid:87)(cid:3)(cid:69)(cid:92)(cid:3)(cid:87)(cid:75)(cid:72)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:76)(cid:81)(cid:3)(cid:83)(cid:68)(cid:86)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)

factor the Commission feels appropriate;

Gn is a growth factor for the nth Year. Value of Gn shall be determined by the Commission foreach Year in the

(cid:48)(cid:88)(cid:79)(cid:87)(cid:76)(cid:3) (cid:60)(cid:72)(cid:68)(cid:85)(cid:3) (cid:55)(cid:68)(cid:85)(cid:76)(cid:73)(cid:73)(cid:3) (cid:50)(cid:85)(cid:71)(cid:72)(cid:85)(cid:3) (cid:73)(cid:82)(cid:85)(cid:3) (cid:80)(cid:72)(cid:72)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3) (cid:80)(cid:68)(cid:81)(cid:83)(cid:82)(cid:90)(cid:72)(cid:85)(cid:3) (cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3) (cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:82)(cid:81)(cid:3) (cid:47)(cid:76)(cid:70)(cid:72)(cid:81)(cid:86)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3) (cid:73)(cid:76)(cid:79)(cid:76)(cid:81)(cid:74)(cid:86)(cid:15)(cid:3)

benchmarking, approved cost by the Commission in past and any otherfactor that the Commission feels

appropriate:

Provided that in case the Licensee has been in operation for less than three (3) Years as on thedate of

effectiveness of these Regulations, the O&M Expenses shall be determined on a case tocase basis.

61.5 Terminal liabilities of employees of Licensee including pension expenses etc. shall be approvedas per

actuals submitted by the Licensee, subject to prudence check or be established throughactuarial studies.

Additionally, any variation due to changes recommended by the paycommission shall be allowed separately

by the Commission, subject to prudence check.

61.6 For the purpose of estimation, the same value of factors (cid:177) CPIinflation and WPIinflation shall be usedfor

all Years of the Control Period. However, the Commission shall consider the actual values ofthe factors (cid:177)

CPIinflation and WPIinflation during the truing up exercise for the Year for which true upis being carried out

and true up the O&M Expenses for that Year, only to the extent of inflation.

Provided that at the time of truing up, the variation in the normative and actual O&M expensesshall be dealt

in accordance with Regulation 15.(cid:180)

5.7.1. Employee Expenses

(cid:51)(cid:72)(cid:87)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:54)(cid:88)(cid:69)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)

The Petitioner has determined the employee expenses for each year of the Control Period based on the norms specified in the JERC MYT Regulations, 2021. The Petitioner has considered FY 2021-22 as the base year and the employee expenses for the Base Year FY 2021-22 have been estimated based on the provisional data from FY 2017-18 to FY 2020-21 due to unavailability of audited accounts. For FY 2021-22 (base year), the employee expenses are arrived by escalating the average expenses (FY 2017-18 to FY 2020-21) by CPI inflation. The working for computing employee expenses for the base year is provided in table below:

Table 25: Calculations of Employee Expenses for base year as submitted by the Petitioner (INR

Crore)

The growth factor (Gn) has been Nil for the control period considering the employee strength in the past few years have shown a negative growth trend.The Petitioner has projected the employee expenses for the control period in line with the MYT Regulations 2021 and is provided in the table below:

(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:68)(cid:81)(cid:68)(cid:79)(cid:92)(cid:86)(cid:76)(cid:86)

In accordance with the JERC MYT Regulations, 2021, the Commission has determined the Employee expenses for each year of the MYT Control Period. The Regulation 6 of the JERC MYT Regulations, 2021 stipulates the following:

(cid:179)(cid:25)(cid:17)(cid:3)(cid:57)(cid:68)(cid:79)(cid:88)(cid:72)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:37)(cid:68)(cid:86)(cid:72)(cid:3)(cid:60)(cid:72)(cid:68)(cid:85)

6.1 The values for the Base Year of the Control Period shall be determined on the basis of the audited accounts

or provisional accounts of last three (3) Years, and other factors considered relevant by the Commission:

Provided that, in absence of availability of audited accounts or provisional accounts of last three (3) Years,

the Commission may benchmark the parameters with other similar utilities to establish the values for Base

Year:

Provided further that the Commission may change the values for Base Year and consequently the trajectory of

(cid:83)(cid:68)(cid:85)(cid:68)(cid:80)(cid:72)(cid:87)(cid:72)(cid:85)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:38)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:3)(cid:51)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:15)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:70)(cid:87)(cid:88)(cid:68)(cid:79)(cid:3)(cid:73)(cid:76)(cid:74)(cid:88)(cid:85)(cid:72)(cid:86)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:86)(cid:17)(cid:180)

The Petitioner has failed to submit the audited accounts for FY 2017-18, FY 2018-19, FY 2019-20 and FY 2020- 21. (cid:44)(cid:81)(cid:3)(cid:85)(cid:72)(cid:86)(cid:83)(cid:82)(cid:81)(cid:86)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:84)(cid:88)(cid:72)(cid:85)(cid:92)(cid:3)(cid:85)(cid:72)(cid:74)(cid:68)(cid:85)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:86)(cid:88)(cid:69)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:86)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:86), the Petitioner vide its reply dated 28.02.2022 has submitted the provisional accounts for FY 2017-18, FY 2018-19 and FY 2019-20.

The Commission has considered the provisional employee expenses from FY 2017-18, FY 2018-19 and FY 2019- 20as follows:

The Commission has arrived at the Base Year estimates i.e., forFY 2021-22 of INR357.07 Cr. based on the approved avg. increase in CPI and the growth in no. of employees based on the manpower plan submitted by the Petitioner in the Business Plan Order dated 31st March 2022.The resultant employee expenses of the Base Year have been escalated by Growth Rate determined based on the manpower plan approved in the Business Plan Order, dated 31st March 2022 and the average CPI Inflation of the last three years to arrive upon the employee expenses of each year of the 3rd Control Period.The Terminal Benefits for each year of the 3rd MYT Control Period has been allowed separately based on the average of Terminal Benefits from FY 2017-18 to FY 2019-20 as per the provisional accounts. The same shall be allowed as per actuals during the time of truing up of the respective years. The CPI inflation has been computed as follows:

Accordingly, the employee expenses approved by the Commission in the MYT Control Period have been provided in the following table:

The Commission approves Employee Expenses of INR344.56Cr. for the FY 2022-23, INR354.39Cr. for the FY 2023-24 and INR365.69Cr. for the FY 2024-25. However, as the base expenses have been computed on the basis of provisional annual accounts, the trajectory shall be considered again for the 3rd MYT Control Period after the availability of audited annual accounts from FY 2017-18 to FY 2020-21.

5.7.2. Administrative and General (A&G) Expenses

(cid:51)(cid:72)(cid:87)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:54)(cid:88)(cid:69)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)

The Petitioner submitted that A&G expenses for each year of the 3rd MYT Control Period has been computed based on the norms specified in the JERC MYT Regulations, 2021 i.e., A&Gn = (A&Gn-1) x (1+CPI inflation).

The Petitioner has considered FY 2021-22 as the base year and has been projected based on the provisional104 Order on ARR for FY 2022-23 to FY 2024-25 and Retail Tariff for the FY 2022-23 52 Electricity Department, Government of Goa ARR for the 3rd MYT Control Period Joint Electricity Regulatory Commission (JERC) OFFICIAL GAZETTE — GOVT. OF GOA SERIES I No. 3 (EXTRAORDINARY No. 2) 27TH APRIL, 2022 A&G expenses of FY 2017-18 to FY 2020-21 as the audited accounts are still under preparation. The average increase in Consumer Price Index (CPI) for the past years has been considered for projecting the A&G expenses and the working for the same is provided in the following tables:

The following table provides the A&G expenses projected for each year of the 3rdMYT Control Period along with various parameters considered.

(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:68)(cid:81)(cid:68)(cid:79)(cid:92)(cid:86)(cid:76)(cid:86)

The Petitioner has failed to submit the audited accounts for FY 2017-18, FY 2018-19, FY 2019-20 and FY 2020- (cid:21)(cid:20)(cid:17)(cid:3)(cid:44)(cid:81)(cid:3)(cid:85)(cid:72)(cid:86)(cid:83)(cid:82)(cid:81)(cid:86)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:84)(cid:88)(cid:72)(cid:85)(cid:92)(cid:3)(cid:85)(cid:72)(cid:74)(cid:68)(cid:85)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:86)(cid:88)(cid:69)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:86)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:86)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:72)(cid:87)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:85)(cid:3)(cid:89)(cid:76)(cid:71)(cid:72)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3) reply dated 28.02.2022 has submitted the provisional accounts for FY 2017-18, FY 2018-19 and FY 2019-20.

The Commission has considered the provisionalA&G expenses from FY 2017-18 to FY 2019-20as follows:

This is escalated with the avg. CPI to arrive at the Base Year estimates. Thereafter, the Base Year estimate has been escalated by average CPI Inflation of the last three years to determine the A&G expense for each year of the Control Period. The A&G expenses approved by the Commission in the MYT Control Period have been provided in the following table:

The Commission approves the Administrative & General (A&G) expenses of INR34.06Cr. for the FY 2022-23, INR36.11Cr. for the FY 2023-24 and INR38.27Cr. for the FY 2024-25.However, as the base expenses have been computed on the basis of provisional annual accounts, the trajectory shall be considered again for the 3 rd MYT Control Period after the availability of audited annual accounts from FY 2017-18 to FY 2020-21.

5.7.3. Repair & Maintenance Expenses (R&M)

(cid:51)(cid:72)(cid:87)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:54)(cid:88)(cid:69)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)

The R&M expenses for each year of the Control Period has been projected based on the norms specified in the JERC MYT Regulations, 2021 i.e., R&Mn = K x GFAn-1 x (1+WPI inflation). The R&M expenses for the FY 2021-22 have been taken as base. The Petitioner has considered the provisional data for FY 2017-18 to FY 2020-21 to compute the base year FY 2021-22. The average increase in Wholesale Price Index (WPI) for the past years has been considered for projecting the R&M expenses and the working for the same is provided in the following tables:

The 'K' factor as prescribed in the regulations has been calculated as ratio of R&M and average GFA of the last 3 years. The 'K' factor has been determined as the ratio of R&M to opening GFA for the FY 2018-19, FY 2019-20 and FY 2020-21 and averaged for three years. The 'K' factor has been computed as follows:

R&M Expenses have been calculated based on the formula and methodology provided in the Regulations, R&Mn = K x GFAn-1 x (1+WPI inflation).

Commis(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:68)(cid:81)(cid:68)(cid:79)(cid:92)(cid:86)(cid:76)(cid:86)

The Petitioner has failed to submit the audited accounts for FY 2017-18, FY 2018-19, FY 2019-20 and FY 2020- (cid:21)(cid:20)(cid:17)(cid:3)(cid:44)(cid:81)(cid:3)(cid:85)(cid:72)(cid:86)(cid:83)(cid:82)(cid:81)(cid:86)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:84)(cid:88)(cid:72)(cid:85)(cid:92)(cid:3)(cid:85)(cid:72)(cid:74)(cid:68)(cid:85)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:86)(cid:88)(cid:69)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:86)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:86)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:72)(cid:87)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:85)(cid:3)(cid:89)(cid:76)(cid:71)(cid:72)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3) reply dated 28.02.2022 has submitted the provisional accounts for FY 2017-18, FY 2018-19 and FY 2019-20. (cid:55)(cid:75)(cid:72)(cid:3)(cid:181)(cid:46)(cid:182)(cid:3)(cid:73)(cid:68)(cid:70)(cid:87)(cid:82)(cid:85)(cid:3)(cid:75)(cid:68)(cid:86)(cid:3)(cid:69)(cid:72)(cid:72)(cid:81)(cid:3)(cid:71)(cid:72)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:72)(cid:71)(cid:3)(cid:68)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:3)(cid:82)(cid:73)(cid:3)(cid:53)(cid:9)(cid:48)(cid:3)(cid:87)(cid:82)(cid:3)(cid:82)(cid:83)(cid:72)(cid:81)(cid:76)(cid:81)(cid:74)(cid:3)(cid:42)(cid:41)(cid:36)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)FY 2017-18, FY 2018-19 and FY 2019-20 (cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:89)(cid:72)(cid:85)(cid:68)(cid:74)(cid:72)(cid:71)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:85)(cid:72)(cid:72)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:86)(cid:17)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:181)(cid:46)(cid:182)(cid:3)(cid:73)(cid:68)(cid:70)(cid:87)(cid:82)(cid:85)(cid:3)(cid:75)(cid:68)(cid:86)(cid:3)(cid:69)(cid:72)(cid:72)(cid:81)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:88)(cid:87)(cid:72)(cid:71)(cid:3)(cid:68)(cid:86)(cid:3)(cid:73)(cid:82)(cid:79)(cid:79)(cid:82)ws:

(cid:55)(cid:75)(cid:72)(cid:3) (cid:181)(cid:46)(cid:182)(cid:3) (cid:73)(cid:68)(cid:70)(cid:87)(cid:82)(cid:85)(cid:3) (cid:76)(cid:86)(cid:3) (cid:78)(cid:72)(cid:83)(cid:87)(cid:3) (cid:70)(cid:82)(cid:81)(cid:86)(cid:87)(cid:68)(cid:81)(cid:87)(cid:3) (cid:73)(cid:82)(cid:85)(cid:3) (cid:68)(cid:79)(cid:79)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:92)(cid:72)(cid:68)(cid:85)(cid:86)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:80)(cid:88)(cid:79)(cid:87)(cid:76)(cid:83)(cid:79)(cid:76)(cid:72)(cid:71)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:82)(cid:83)(cid:72)(cid:81)(cid:76)(cid:81)(cid:74)(cid:3) (cid:42)(cid:41)(cid:36)(cid:3) (cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:89)(cid:72)(cid:71)(cid:3) (cid:73)(cid:82)(cid:85)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:11)(cid:81)-1)th year. The resultant amount is then escalated by WPI Inflation to arrive upon the R&M Expenses for each year of the Control Period. The WPI Inflation has been computed as follows:

The R&M expenses approved by the Commission for each year of the 3rdMYT Control Period have been provided in the following table:

Table 39: R&M Expense approved by the Commission for the 3rd MYT Control Period (in INR

Cr.)

The Commission therefore approves the Repair & Maintenance (R&M) expenses of INR55.33Cr. for the FY 2022-23, INR82.28Cr. for the FY 2023-24 and INR104.23Cr. for the FY 2024-25.However, as the K factor has been computed on the basis of provisional annual accounts, the trajectory shall be considered again for the 3rd MYT Control Period after the availability of audited annual accounts from FY 2017-18 to FY 2020-21.

5.7.4. Summary of O&M Expenses

(cid:51)(cid:72)(cid:87)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:54)(cid:88)(cid:69)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)

The Summary of O&M expenses as per the Petitioner for each year of the 3rdMYT Control Period have been provided in the following table:

Table 40: Summary of O&M expensessubmitted by the Petitioner for the 3rd MYT Control

Period (in INR Cr.)

(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:68)(cid:81)(cid:68)(cid:79)(cid:92)(cid:86)(cid:76)(cid:86):

The Summary of O&M expenses approved by the Commission for each year of the 3rdMYT Control Period have been provided in the following table:

Table 41: Summary of O&M expensesapproved by the Commission for the 3rd MYT Control

Period (in INR Cr.)

5.8. Gross Fixed Assets (GFA) and Capitalization

(cid:51)(cid:72)(cid:87)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:54)(cid:88)(cid:69)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)

The Petitioner submitted that they have considered the capital expenditure for the control period as per thie submission of capital expenditure plan in the Business Plan Petition. The details of the capital expenditure and capitalisation as proposed by the Petitioner for the 3rd Control Period is as under:

Table 42: Capital Expenditure submitted by the Petitioner for the 3rd MYT Control Period(INR

Cr)

(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:68)(cid:81)(cid:68)(cid:79)(cid:92)(cid:86)(cid:76)(cid:86):

The Commission considered the Capital expenditure and capitalization as approved by the Commission in the Business Plan Order dated 31st March 2022. The following table provides the summary of capital expenditure and capitalization now approved by the Commission (a more detailed description of the capital expenditure plan is given in the Business Plan section of this Order):

Table 44: Capital Expenditure & Capitalisation considered by the Commission for 3rd Control

Period (INRCr.)

5.9. Capital Structure

(cid:51)(cid:72)(cid:87)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:54)(cid:88)(cid:69)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)

The Petitioner has proposed the following funding plan for the capital expenditure proposed for the 3 rd control period:

The Petitioner has also provided the calculation of net GFA/Capitalisation after removal of grant and electricity duty portion, as depreciation, Interest on loan and return on equity is not allowed on the assets created through grants and electricity duty fund or any subsidy. The details are provided in the following table:

(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:68)(cid:81)(cid:68)(cid:79)(cid:92)(cid:86)(cid:76)(cid:86)

Regulation 27 of the JERC MYT Regulations, 2021 specifies the following:

(cid:179)27.1 In case of Existing Projects, debt to equity ratio allowed by the Commission for determination of tariff

for the period ending March 31, 2022 shall be considered:

Provided that in case of retirement or replacement or De-capitalisation of the assets, the equity capital

approved as mentioned above, shall be reduced to the extent of 30% (or actual equity component based on

documentary evidence, if it is lower than 30%) of the original cost of such assets:

Provided further that in case of retirement or replacement or De-capitalisation of the assets, the debt capital

approved as mentioned above, shall be reduced to the extent of outstanding debt component based on

documentary evidence, or the normative loan component, as the case may be, of the original cost of such

assets.

27.2 For New Projects, the debt-equity ratio as on the Date of Commercial Operation shall be 70:30 of the

amount of capital cost approved by the Commission under Regulation 24, after prudence check for

determination of tariff:

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

actual equity shall be considered for determination of tariff:

Provided also that if the equity actually deployed is more than 30% of the capital cost, equity in excess of 30%

shall be treated as a normative loan for the Licensee for determination of tariff:

Provided also that the Licensee shall submit documentary evidence for the actual deployment of equity and

explain the source of funds for the equity:

Provided also that the equity invested in foreign currency shall be designated in Indian rupees on the date of

each investment:

Provided further that the premium, if any, raised by the Licensee while issuing share capital and investment

of internal resources created out of its free reserves, for the funding of the scheme,

shall be reckoned as paid up capital for the purpose of computing return on equity, provided such premium

amount and internal resources are actually utilised for meeting the capital expenditure of the transmission

system or the distribution system, and are within the ceiling of 30% of capital cost approved by the

Commission.

27.3 Any expenditure incurred or projected to be incurred on or after April 1, 2022, as may be admitted by the

Commission, as additional capital expenditure for determination of tariff, and renovation and modernisation

expenditure for life extension shall be serviced in the manner specified in these Regulations(cid:180)

The Petitioner has failed submit the Petition for True-up for FY 2017-18, FY 2018-19, FY 2019-20 and FY 2020- 21 based on annual audited accounts. The Commission has therefore considered actual trued up closing values of GFA, loan and equity approved for FY 2016-17 and the provisional/estimated figures of capitalisation and funding breakup in capitalisation schedule submitted by the Petitioner for FY 2017-18 (provisional), FY 2018-19 (provisional), FY 2019-20 (provisional), FY 2020-21 (provisional) and FY 2021-22 (estimated) to arrive at the opening values of GFA, loan and equity for FY 2022-23. The provisional values considered shall be trued up based on audited annual accounts during the True-up of respective years. The reconciliation of Capital Structure, GFA, normative loan and normative equity from FY 2017-18 to FY 2021-22 and that approved by the Commission for the 3rdMYT Control Periodare shown in the following tables:

Table 48: GFA (including GFA addition through Electricity Duty Fund, Govt. Grants and

Consumer Contribution) considered by the Commission for 3rdMYT Control Period (INRCr.)

Table 49: GFA (excluding GFA addition through Electricity Duty Fund, Govt. Grants and

Consumer Contribution) considered by the Commission for 3rdMYT Control Period (INRCr.)