Dakshin Gujarat Vij Company Limited Suo - Motu Case No ... - GERC

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Dakshin Gujarat Vij Company Limited Truing up for FY 2010-11 and Determination of Tariff for FY 2012-13 3. Brief outline of Objections raised, response from DGVCL and Commission‟s view In response to the public notice inviting objections/suggestions of the stakeholders on suo-motu proceeding for truing up for FY 2010-11 and determination of tariff for FY 2012-13, a number of consumers/consumer organisations filed their submissions in writing. Some of these objectors also participated in the public hearing held on the 7 th May, 2012 jointly for DGVCL, MGVCL, UGVCL and PGVCL. The objections /suggestions, the responses and submissions of the licensee on them and the views of the Commission are indicated below. Submissions and responses, pertaining to specific and detailed aspects of tariff, have been taken into account in the formulation of an equitable tariff, balancing the interests of various stakeholders, even if they may not find place in this chapter. 1. Non-submission of Petition Objection: Some of the stakeholders have pointed out that the DISCOMs have not filed the petition for True up for FY 2010-11 and determination of tariff for FY 2012- 13. Response of the Licensee: GERC has initiated suo-motu petition for truing up of FY 2010-11 and determination of tariff for FY 2012-13. Commission’s View: The GERC notified MYT regulations 2011 on 22 nd March, 2011. As per the provisions stipulated in regulation 29.8, licensees are required to file the petition for the truing up of FY 2010-11 and determination of tariff for FY 2012-13 latest by 30 th November, 2011. The licensee did not file the true up petition for FY 2010-11 as well as the tariff determination petition for FY 2012-13. The order is being passed in a suo-motu proceeding initiated by the Commission and on the basis of information provided by the DGVCL in its various submissions. 2. Uniform Tariff across various Discoms Objection: Some of the stakeholders have pointed out that the tariff rate of the four DISCOM‟s should not be the same. The benefits of good performance of DGVCL and Gujarat Electricity Regulatory Commission Page 12 June 2012
Dakshin Gujarat Vij Company Limited Truing up for FY 2010-11 and Determination of Tariff for FY 2012-13 MGVCL are not being transferred to the consumers and are used as cross – subsidy to PGVCL and UGVCL. Response of the Licensee: The licensee has submitted that the four distribution companies are incorporated on the basis of zonal configuration. The licensee has further mentioned that since the 70% - 80% of the total cost incurred by DISCOM is for Power Purchase, which plays a major role in determining the Annual Revenue Requirement as well as Gap / (Surplus) for the DISCOM for a particular year. Since, the consumer profile and consumption profiles are different in the four distribution companies; the revenue earning capabilities of each of the DISCOMs differs resulting in different Annual Revenue Requirement. Therefore, to bring them to a level playing field the concept of differential Bulk Supply tariff (BST) was adopted by the Commission in the earlier Tariff Orders. Commission’s View: The Commission has accepted differential BST in the MYT Order issued on 6 th September, 2011 to keep uniform retail tariff across the four DISCOMs for some more time till the consumer profile in all the DISCOMs are at a comparative level. 3. Variation in category-wise average revenue realization across DISCOMs Objection: Some of the stakeholders have pointed out that the average realization for each category of consumers is different in all the four DISCOMs. The DISCOM‟s should be asked to explain this difference in average realization. Response of the Licensee: The licensee has submitted that the revenue earned by the DISCOMs is a combination of Fixed Cost and Variable Cost. Variation in category wise Revenue/ Sales i.e. per unit cost of energy is mainly on account of fixed cost levied to the consumers. The fixed cost is a function of number of consumers and connected load in that particular category/slab. The number of consumers and connected load vary for categories across DISCOMs and hence the effect is seen in per unit cost of energy sold by DISCOMs. Commission’s View: The Commission has noted the response of licensee. Gujarat Electricity Regulatory Commission Page 13 June 2012
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