Uttar Pradesh Electricity Regulatory Commission recently passed an order on Truing up of tariff for FY 2018-19, annual performance review (APR) for fy 2019-20 And Approval of aggregate revenue requirement and tariff for fy 2020-21 for its UP Discoms.
Petionors include Dakshinanchal Vidyut Vitran Nigam Ltd., Agra (DVVNL),Madhyanchal Vidyut Vitran Nigam Ltd., Lucknow (MVVNL), Pashchimanchal Vidyut Vitran Nigam Ltd., Meerut (PVVNL), Purvanchal Vidyut Vitran Nigam Ltd., Varanasi (PuVVNL), Kanpur Electricity Supply Company Ltd., Kanpur (KESCO).
The Commission finds that the Petitioners have neither provided the Capital investment plan nor have they taken any prior approval of any scheme having capital expenditure greater than INR 10 Crore.
The Petitioner submitted that Opening CWIP, fresh Investment and employee capitalisation has been considered to be 40% capitalised and transferred to GFA. Considering the Capital Work in Progress balances (CWIP), investment during the year, capitalisations, the State Discoms have computed the closing CWIP for FY 2019-20.
The Commission had deliberated on the Distribution Loss Trajectory of the Licensees for the Control Period FY 2020-21 to FY 2024-25 and approved the Distribution Loss Trajectory for the Licensees in the Business Plan Order dated October 27, 2020.The distribution loss approved for FY 2020-21 claimed was 17.90% and the commission Approved 11.54%.
The Smart Meter Rollout scheme of the board is an OPEX model and not CAPEX model. With roll out of Smart Meters, the billing and collection efficiency of Discoms will increase thereby reducing the commercial losses.
The Commission also did not allow additional O&M expenses.
The State Owned Discoms submitted that it has computed the interest to consumers on the security deposits on the average of the opening and closing balance of the security deposits for the years at the State Bank of India Bank Rate of 7.75% for FY 2019-20, accordingly, Commission has computed and approved the interest on security deposit for FY 2020-21.
To know more about the order refer to the document below: