1 / 20

Analysis of OPTCL’s ARR and Transmission tariff for FY 2011-12

Analysis of OPTCL’s ARR and Transmission tariff for FY 2011-12. By: World Institute of Sustainable Energy, Pune (Consumer Counsel) 4 th February, 2011. Proposal of OPTCL. Proposed Revenue Requirement for FY 11-12 (Rs Cr). Total gross requirement: 1578.69 Rs Crore.

zulema
Télécharger la présentation

Analysis of OPTCL’s ARR and Transmission tariff for FY 2011-12

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. Analysis of OPTCL’s ARR and Transmission tariff for FY 2011-12 By: World Institute of Sustainable Energy, Pune (Consumer Counsel) 4th February, 2011

  2. Proposal of OPTCL

  3. Proposed Revenue Requirement for FY 11-12 (Rs Cr) Total gross requirement: 1578.69 Rs Crore

  4. Analysis of ARR and Transmission Tariff

  5. Transmission loss

  6. Employee cost incl. terminal benefits (Rs Cr.) *Including payment of differential pension and pensionary benefits

  7. Employee cost incl. terminal benefits (contd.) Submission • OPTCL has requested 241% rise in employee cost including terminal benefit in ARR of FY 2011-12 • Basic Pay + GP: Yearly escalation of 3% shall be allowed over the Commissioned approved amount of 2010-11 • DA: The DA proposed for 2011-12 (63%) seems to be on higher side and therefore may be reviewed • HRA: The HRA Proposed for 2011-12 (20% ) may be reviewed according to Govt norms • Terminal benefit: may be finalized as per independent valuation report

  8. R&M and A&G Expenses (Rs Cr.)

  9. R&M and A&G Expenses (contd. Submission • The approved and actual R&M expenses in last few years reveal that OPTCL actually incurred less than 50% expenditure on R&M (except 2009-10); therefore, consumer should not be burdened with excessive projected R&M expenses • As per OPTCL Business Plan 5.5% yearly escalation in A&G expenses shall be allowed to pass through in ARR (i.e. Rs. 15.97 Cr against projection of Rs 38.34 Cr for FY 2011-12)

  10. O&M Expenses as per CERC Projected O&M: 1084.29 Rs Crore (Employee:952.06, R&M:93.89, A&G:38.34); whereas as per CERC Regulation it can be reduced by nearly 50%

  11. Loan liability Observation: • OPTCL has proposed new loans of 903.82 Crore @11% to be availed in FY 2011-12 • OPTCL has reported State Govt (cash loan) balance of the tune of Rs 2 Cr. And requested to allow Rs 0.26 Cr as a interest component of that in the ARR Submission • New loan interest 68.94 Cr shall not to be passed through in the ARR of FY 2011-12 • Interest on State Govt. (Cash loan) should be kept in abeyance as per Govt directive

  12. Capex Plan Observation: The reasons for variation in expenses under O&M and telecom reported in earlier capex plan and ARR submission need to be verified

  13. Gross fixed asset and depreciation

  14. Gross fixed asset and depreciation Submission: • Consumer counsel has calculated the Gross Fixed Asset by taking reference 0f OERC actual and approved GFA as on 1.04.2009 and 1.04.2010 respectively • After addition the yearly addition (09-10 & 10-11 as given in ARR), the GFA arrived are lower than that claimed by OPTCL • Commission may consider the GFA as determined in the previous slide

  15. Return on equity, Reserve & others Observation: • Equity claimed by OPTCL: Rs 160.07 Cr – 60.07 (old) + 48.05 (received) + 51.94 (expected) Submission: • Commission shall not allow RoE on ol d equity and expected equity base • Reasonable RoE = 48.05 * 15.5% = Rs 7.45 Cr (claimed RoE - Rs 24.81 Cr) • Disallow the claim for further Contingency reserve • Interest on working capital, bad debts and pass through expenses shall not be pass through in ARR

  16. Summary of ARR (2011-12)

  17. Proposed Transmission tariff

  18. Open access charges

  19. Summary • OPTCL has claimed a hike of 192% in transmission tariff which will increase the cost of electricity at consumer end • The increase in transmission tariff is resulted due to higher claim of OPTCL in following components: • Employee cost incl. terminal benefits and pension/R&M expenses/ A&G expenses/ Interest on new loan and old state govt. loans/ Gross fixed asset and depreciation/ RoE, Contingency reserve, Interest on working capital and pass through expenses • Commission may consider the submission of consumer counsel and reduce the transmission tariff at reasonable level

  20. Thank you

More Related