1 / 14

Overview of tariff revision process under Regulatory Commission

Overview of tariff revision process under Regulatory Commission. Prayas - EGI Skill-share workshop for Tajikistan and Kyrgyzstan Delegates November 16-18, 2010, Pune, India Prayas Energy Group www.prayaspune.org/peg , energy@prayaspune.org. Tariff revision. Agenda.

zach
Télécharger la présentation

Overview of tariff revision process under Regulatory Commission

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Overview of tariff revision process under Regulatory Commission Prayas - EGI Skill-share workshop for Tajikistan and Kyrgyzstan DelegatesNovember 16-18, 2010, Pune, IndiaPrayas Energy Groupwww.prayaspune.org/peg, energy@prayaspune.org

  2. Tariff revision Prayas EGI Workshop - Pune 2010

  3. Agenda • Tariff revision process and principles • Tariff proposal and cost components • Tariff structure Prayas EGI Workshop - Pune 2010

  4. Procedure Prayas EGI Workshop - Pune 2010

  5. Tariff principles • Company to recover all reasonable and efficient costs plus allowed profits  Revenue requirement = cost + profit • Reduction of cross-subsidy • No tariff shock to any consumer category • Development considerations • Affordability of small and agriculture consumers Prayas EGI Workshop - Pune 2010

  6. Tariff proposal and cost components • Past performance • Sales & revenue • Costs and expenses • Compliance with directives • Performance norms • Energy losses • Supply quality • Projections for next year/period • Sales • Revenue at current tariff + Non-tariff income • Costs and revenue gap/surplus • Proposed improvements in performance Prayas EGI Workshop - Pune 2010

  7. Cost components for distribution business • Power purchase cost • Transmission charges • Capital expenditure and related costs • Interest on long term loan • Depreciation • Operation and maintenance cost • Employee cost • Administration costs • Repair and maintenance Prayas EGI Workshop - Pune 2010

  8. Generation tariff components • Fixed cost • Loan repayment • Depreciation • Operations and maintenance cost • Variable costs • Fuel related expenses • Linked to performance norms such plant availability, load factor, station heat rates, etc Prayas EGI Workshop - Pune 2010

  9. Basis for cost components • Tariff regulations • Normative debt equity ratio of 70:30 • Fixed return on equity e.g. 16% for distribution and 14% for generation and transmission • Depreciation schedule for various equipments/assets • In-principle clearance mechanism for capital expenditure • Normative interest schedules • Performance norms and standards Prayas EGI Workshop - Pune 2010

  10. Tariff structure Prayas EGI Workshop - Pune 2010

  11. Industry tariffs: fixed and variable charges Prayas EGI Workshop - Pune 2010

  12. Other forms of tariff • Time of day tariff • Fuel adjustment cost Prayas EGI Workshop - Pune 2010

  13. Tariff determination • Art and science • Specific objectives to be achieved • Cost recovery • Company efficiency • Investment attractions • Social considerations: affordability of small and marginalized groups • Increased consumer confidence and increased acceptance of tariff order Prayas EGI Workshop - Pune 2010

  14. Questions and comments! Prayas EGI Workshop - Pune 2010

More Related