PUNJAB STATE ELECTRICITY REGULATORY COMMISSION

 

Notification

 

The 27th July, 2009

 

 

No. PSERC/Secy/Regu-42 In exercise of the powers conferred on it under Section 61 read with Section 181 of the Electricity Act, 2003 (36 of 2003) and all other powers enabling the Commission in this behalf, the Punjab State Electricity Regulatory Commission hereby makes the following Regulations to amend the Punjab State Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) Regulations, 2005 (notified vide Notification No. PSERC/Secy/Regu-24 dated 21st November, 2005), namely :-

1. These Regulations may be called the Punjab State Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) (1st Amendment) Regulations, 2009.

2. These Regulations shall come into force on the date of their publication in the official gazette of the State.

3. In Regulation 13 of the main Regulations, for clause (1), the following shall be substituted, namely :-

Reg. 13 - Filing

(1) Each generating company and the licensee will file Tariff Application on or before 30th November each year with the Commission, in the format as may be laid down which will include statements containing calculation of the expected aggregate revenue from charges under its currently approved tariff and the expected cost of providing services i.e. Aggregate Revenue Requirement (ARR) during the previous year, current year and ensuing year. The information for the previous year should be based on audited accounts, if available.

The Tariff Application will also contain tariff proposals so as to fully cover the gap between the expected aggregate revenue at the prevalent tariff and the expected cost of services including schemes for reduction in loss levels and other efficiency gains to be achieved.

A set of proformae in which an integrated utility has to file its Tariff Application is enclosed (formats 1 to 35). For unbundled utilities a new set of proformae will be notified.

 

4. In Regulation 23 of the main Regulations, for clause (3) the following shall be substituted, namely:-

Reg. 23 Capital cost and capital structure

(3) Scrutiny of the capital cost estimates by the Commission shall include the reasonableness, financing plan, interest during construction, use of efficient technology, gestation period and such other matters relevant for determination of tariff.

The cost of setting up a coal washery, coal beneficiation system or dry ash handling & disposal system by a generating company shall be allowed in the capital cost of a coal fired thermal power plant in case a coal washery, coal beneficiation system or dry ash handling & disposal system has been or is to be set up by the company.

 

5. In Regulation 28 of the main Regulations, for clause (4), (6) & (7), the following shall be substituted, besides adding a new clause (8), namely:-

Reg. 28 - Operation and Maintenance Expenses

(4) O&M expenses for distribution functions will be determined by the Commission as follows :-

(a) O&M expenses as approved by the Commission for the year 2005-06 will be considered as base O&M expenses for determination of O&M expenses for subsequent years.

(b) Base O&M expenses as above will be adjusted according to variation in the average rate (on monthly basis) of Wholesale Price Index (all commodities) over the year to determine the O&M expenses for subsequent years.

(c) In case of unbundling of the Board and formation of separate distribution companies, the Commission will make suitable assessment of base O&M expenses of individual distribution companies separately and allow O&M expenses for subsequent years for individual companies on the basis of such estimation and above principle. However, for employee cost the principle specified in clause (8) below will be followed.

(6) O&M expenses excluding employee expenses for gross fixed assets added during the year will be considered for a period of six months in cases where Commercial Operation Date of the assets is not available otherwise from the date of commissioning on pro-rata basis.

(7) O&M expenses excluding employees cost for an integrated utility will be determined by the Commission on the norms and principles indicated above.

(8) The employee cost for an integrated utility will be determined as follows :-

(a) The employee cost as claimed by the Board/Licensee will be considered in two parts (i) Terminal benefits such as Death-cum-Retirement Gratuity, Pension, Commuted Pension, Leave Encashment, LTC, Medical reimbursement including fixed medical allowance in respect of pensioners and share of BBMB employee expenses and (ii) all other expenses accounted for under different sub-heads of employees cost taken together. The cost component of terminal benefits and BBMB expenses will be allowed on actual basis and increase in all other expenses under different sub-heads will be limited to the increase in Wholesale Price Index (all commodities) as per clause (4) (b) above.

(b) Exceptional increase in employee cost on account of pay revision etc. will be considered separately by the Commission.

6. In Regulation 30 of the main Regulations, for clause (3) the following shall be substituted, namely:-

Reg. 30 Working capital and interest on working capital

(3) Working capital of an integrated utility will be the sum of two months requirement for fuel cost and one month for meeting the following :-

i)                    Power purchase cost

ii)                  Employees cost

iii)                Administration & General expenses

iv)                R&M expenses

v)                  Maintenance spares as per CERC norms

 

7. In Regulation 31 of the main Regulations, for the existing Regulation the following shall be substituted, namely:-

Reg. 31 Foreign exchange rate variation (FERV)

(1)               The generating company or the transmission/distribution licensee, as the case may be, may hedge foreign exchange exposure in respect of the interest on foreign currency loans and repayment of foreign loans acquired for the generating station or the transmission/distribution system, in part or full in the discretion of the generating company or the transmission/ distribution licensee.

(2)               Every generating company and transmission/distribution licensee shall recover the cost of hedging of foreign exchange rate variation corresponding to the normative foreign debt, in the relevant year on year to year basis as expense in the period in which it arises and extra rupee liability corresponding to such foreign exchange rate variation shall not be allowed against the hedged foreign debt.

(3)               To the extent the generating company or the transmission/ distribution licensee is not able to hedge the foreign exchange exposure, the extra rupee liability towards interest payment and loan repayment corresponding to the normative foreign currency loan in the relevant year will be permissible provided it is not attributable to the generating company or the transmission/ distribution licensee or its suppliers or contractors.

(4)               Every generating company and the transmission/distribution licensee shall recover the cost of hedging and foreign exchange rate variation on year to year basis as income or expense in the period in which arises.

 

 

 

By Order of the Commission,

 

Sd/-

(NAMITA SEKHON)

Secretary to the Commission.


(Formats 1 to 34 are as already existing) FORMAT-35

 

PUNJAB STATE ELECTRICITY BOARD

Statement showing the amount of Government subsidy due and received

for the year________________

 

(Rs. in crores)

Particulars

Consumption as per account for the year (in MUs)

Revenue required

 

Revenue actually receivable from consumers

Amount of subsidy due from GoP

Amount of subsidy received from GoP

Amount of subsidy received from GoP excess/ short

(+/-)

Energy charges

Meter rentals and service charges

Total

1.

2.

3.

4.

5.

6.

7.

8.

9.

 

(i) AP consumers

 

 

 

 

 

 

 

 

 

 

(ii) Scheduled Castes DS consumers

 

 

 

 

 

 

 

 

 

 

(iii) Non-SC BPL DS consumers

 

 

 

 

 

 

 

 

 

 

Total