Report of Indian Institute of Public Administration ... - Ministry of Power

Andhra Pradesh
4.4.1 Regulations and Tariff Orders
The Commission has issued Tariff Orders regularly every year in the third
week of March, so that the orders are effective for the next financial year. The
utilities are mandated to file their Annual Revenue Requirements (ARRs) and
tariff applications every year by December. The utilities have adhered to the
time schedules prescribed for filing the ARRs and tariff applications. The
Commission calls for the objections from the stakeholders and also conducts
public hearings at different places in the State (at one place in the jurisdiction
of each DISCOM) before finalising the tariffs. The Commission has framed
regulations for a MYT framework. Under these regulations, each distribution
licensee has to make the filings in respect of distribution business for a control
period of five years. However, the first control period is for three years, starting
from 2006-07 to 2008-09. The filings for the retail supply business are to be on
an annual basis for the first control period and thereafter for entire control
period for the subsequent control periods of five-year duration. The first tariff
orders cover under the MYT framework issued by the Commission cover the
following:
• Tariffs for wheeling of electricity (distribution business) for the entire
control period of 2006-07 to 2008-09; and
• Retail supply tariffs for 2006-07.
A number of regulations were issued by the Commission before the EA, 2003
came into force. Some of them were modified in terms of the provisions of the
new Act. 17 Regulations have been notified by APERC under the EA, 2003.
The regulations, guidelines and codes issued by the Commission cover the
broad spectrum of the items relating to the functioning of the Commission and
the licensees and also relating to the protection of the interests of the
consumers.
4.4.2 Appointment of Electricity Regulators
Andhra Pradesh Electricity Reform Act, 1998 stipulates that the three member
Commission shall consist of one technical member (Graduate Electrical
Engineer) with knowledge and experience in the power industry and two others
with specialisation and adequate experience in any one of the disciplines like
economics, law, commerce, accountancy, finance or administration. However,
at any point of time, the Commission shall not consist of more than one
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