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Andhra Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff for Wheeling and Retail Sale of Electricity) Regulation, 2005
Andhra Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff for Wheeling and Retail Sale of Electricity) Regulation, 2005
Sections
1. Short Title, Extent and Commencement.
Section 12. Definitions and interpretation.
Section 23. Extent of Application.
Section 34. Guidelines for Computing Aggregate Revenue Requirement.
Section 45. Segregation of Accounts into Distribution and Retail Supply.
Section 56. Filing Procedure.
Section 67. Filing for Proposed Tariff (FPT).
Section 78. Disposal of Applications.
Section 89. Resource Plan.
Section 910. Multi-Year Tariff Framework and Approach.
Section 1011. Main Items of ARR.
Section 1112. Cost of Power Procurement.
Section 1213. Transmission and Load Dispatch Charges.
Section 1314. Operation and Maintenance Costa.
Section 1415. Return on Capital Employed.
Section 1516. Investment Plan.
Section 1617. Depreciation.
Section 1718. Taxes on Income.
Section 1819. Corrections for "Uncontrollable" Items and "Controllable" Items and Sharing of Gains/Losses of "Controllable" Items.
Section 1920. Determination of Full Cost Tariffs for Wheeling and Retail Sale of Electricity.
Section 2021. Periodic Reviews.
Section 2122. End-of-Control-Period Review.
Section 2223. Power to Amend.
Section 2324. Saving.
Section 24
andhra-pradesh-electricity-regulatory-commission-terms-and-conditions-for-determination-of-tariff-for-wheeling-and-retail-sale-of-electricity-regulation-2005.json
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24 Sections
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Andhra Pradesh
{
"id": 14461,
"slug": "andhra-pradesh-electricity-regulatory-commission-terms-and-conditions-for-determination-of-tariff-for-wheeling-and-retail-sale-of-electricity-regulation-2005",
"title": "Andhra Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff for Wheeling and Retail Sale of Electricity) Regulation, 2005",
"short_title": "Andhra Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff for Wheeling and Retail Sale of Electricity) Regulation, 2005",
"act_number": "(Regulation No.4 of 2005)",
"act_year": 2005,
"act_type": "STATE",
"location": "Andhra Pradesh",
"law_status": "unknown",
"enactment_date": null,
"description": "Andhra Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff for Wheeling and Retail Sale of Electricity) Regulation, 2005",
"preamble": "",
"section_label": "Section",
"sections": [
{
"number": "1",
"title": "1. Short Title, Extent and Commencement.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 0
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{
"number": "2",
"title": "2. Definitions and interpretation.",
"chapter": null,
"content": "(a) \"Act\" means the Electricity Act, 2003 (36 of 2003);\n(b) \"Aggregate Revenue Requirement\" (ARR) means the revenue required to meet the costs pertaining to the licensed business, for a financial year, which would be permitted to be recovered through tariffs and charges by the Commission.\n(c) \"Base Year\" means the financial year immediately preceding the first year of the Control Period;\n(d) \"CERC\" means the Central Electricity Regulatory Commission established under Section 76 of the Act;\n(e) \"Commission\" means the Andhra Pradesh Electricity Regulatory Commission;\n(f) \"Conduct of Business Regulations\" means the Andhra Pradesh Electricity Regulatory Commission (Conduct of Business) Regulations in force from time to time;\n(g) \"Consumer / User contributions\" means any contributions made by those using or intending to use the Distribution network of a licensee for supply or wheeling of electricity. Any grant received by Licensees would also be treated as Consumer / User contribution.\n(h) \"Control Period\" means a multiyear period fixed by the Commission from time to time, usually 5 years, for which the principles for determination of revenue requirement will be fixed, the first Control Period, however, being of the duration of 3 years;\n(i) \"Distribution Business\" means the business of operating and maintaining a distribution system for supplying electricity in the area of supply of the Distribution Licensee in terms of the Distribution and Retail Supply Licence granted by the Commission;\n(j) \"Financial year\" means the period commencing on 1st April of a calendar year and ending on 31st March of the subsequent calendar year;\n(k) \"Licensees\" Standards of Performance Regulation\" means the A. P. Electricity Regulatory Commission (Licensees' Standards of Performance) Regulation, 2004 (Regulation No.7 of 2004).\n(l) \"Non-Tariff Income\" means income relating to the licensed business other than from tariffs for wheeling and retail sale, and excludes any income from Other Business and income on account of Fuel Surcharge Adjustment, Crosssubsidy Surcharge and Additional Surcharge;\n(m) \"Other Business\" means any business engaged in by a Distribution Licensee under Section 51 of the Act for optimum utilization of the assets of such Distribution Licensee and shall include any business of the Distribution Licensee other than the licensed business;\n(n) \"Retail Supply Business\" means the business of sale of electricity by a Licensee to consumers , in accordance with the terms of the Distribution and Retail Supply Licence;\n(o) \"Regulated Rate Base (RRB)\" is the value of the gross fixed assets net of the consumer contributions and accumulated depreciation;\n(p) \"State\" means the State of Andhra Pradesh.\n(ii) Words and expressions used and not defined in this Regulation but defined in the Act shall have the meanings as assigned to them in the Act.\n(iii) All proceedings under this Regulation shall be governed by the Andhra Pradesh Electricity Regulatory Commission (Conduct of Business) Regulations.",
"footnote": "",
"is_definition": true,
"sort_order": 1
},
{
"number": "3",
"title": "3. Extent of Application.",
"chapter": null,
"content": "Part-II\nApproach, Frame Work, Procedures and Filings",
"footnote": "",
"is_definition": false,
"sort_order": 2
},
{
"number": "4",
"title": "4. Guidelines for Computing Aggregate Revenue Requirement.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 3
},
{
"number": "5",
"title": "5. Segregation of Accounts into Distribution and Retail Supply.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 4
},
{
"number": "6",
"title": "6. Filing Procedure.",
"chapter": null,
"content": "ARR for Distribution Business.\n(a) The Operation and Maintenance (O&M) costs which include employee-related costs, repair & maintenance costs and administrative & general costs, estimated for the Base Year and the year prior to the Base Year in complete detail, together with the forecast for each year of the Control Period based on the norms proposed by the Distribution Licensee including indexation and other appropriate mechanisms in terms of the principles enunciated in this Regulation for O&M cost allowance.\n(b) Regulated Rate Base (RRB) for the Base Year and each year of the Control Period which requires submission of the working capital requirement and a detailed scheme/project-wise Capital Investment Plan with a capitalisation schedule covering each year of the Control Period consistent with the Commission's approved Resource Plan.\n(c) A proposal for appropriate capital structure and its cost of financing (interest cost and return on equity) for the purpose of computing Weighted Average Cost of Capital.\n(d) Targets proposed for reduction of distribution losses during the Control Period duly adhering to the Licensees' Standards of Performance Regulation.\n(e) Details of depreciation, including Advance against depreciation if any required and capitalisation schedules for each year of the Control Period.\n(f) Description of external parameters proposed to be used for indexation;\n(g) Details of taxes on income;\n(h) Any other relevant expenditure;\n(i) Proposals for sharing of gains and losses;\n(j) Proposals for efficiency parameter targets;\n(k) Proposals for rewarding efficiency in performance\n(l) Any other matters considered appropriate\nARR for Retail Supply Business.\n(a) Power purchase costs for each year of the Control Period. The power purchase costs shall also include the transfer price of own generation for the supply business in line with the Power Procurement Plan approved by the Commission as part of the Distribution Licensee's Resource Plan.\n(b) All other items mentioned for the distribution business to the extent applicable and in accordance with cost allocation statement mentioned in clause 5 of this Regulation.",
"footnote": "",
"is_definition": false,
"sort_order": 5
},
{
"number": "7",
"title": "7. Filing for Proposed Tariff (FPT).",
"chapter": null,
"content": "(a) Wheeling of electricity, i.e. Wheeling Charges to recover the ARR of Distribution Business\n(b) Retail sale of electricity, i.e. Tariffs for Retail sale of electricity to recover the ARR of Retail Supply Business\n(a) The Distribution system or network usage forecast for each year of the Control Period consistent with the Resource Plan.\n(b) Proposals for computation of tariffs for wheeling of electricity for each of the years of the Control Period, including the losses to be charged in kind and the procedure therefor.\n(c) Proposals for Non-Tariff Income with item-wise description and details.\n(d) Proposals in respect of income from Other Business.\n(e) The proposed wheeling charges shall be voltage-wise. For the first Control Period, however, the Distribution Licensee may propose these charges computed on normative basis.\n(f) Expected Revenue from the proposed Wheeling Charges, Non-Tariff Income and Income from Other Business(es).\n(a) Proposal for retail sale of electricity to the consumers pertaining to its retail supply business and the details may include tariffs for each consumer category, slab-wise and voltage-wise. The tariffs proposed may also include energy charges, fixed/demand charges and minimum charges.\n(b) Proposals for Non-Tariff Income with item-wise description and details.\n(c) Each tariff proposal submitted by the Distribution Licensee shall be supported with a cost-of-service model allocating the costs of the licensed business in respect of each category of consumers based on appropriate assumptions.\n(d) Expected Revenue from the proposed Retail Sale Tariffs, Non-Tariff Income and income from Other Business(es) and other matters considered appropriate by the Distribution Licensee, including incentive schemes to consumers, voltage surcharge and power factor surcharge.",
"footnote": "",
"is_definition": false,
"sort_order": 6
},
{
"number": "8",
"title": "8. Disposal of Applications.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 7
},
{
"number": "9",
"title": "9. Resource Plan.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 8
},
{
"number": "10",
"title": "10. Multi-Year Tariff Framework and Approach.",
"chapter": null,
"content": "Base Year.\nTargets.\nControllable and Uncontrollable items of ARR:\nDistribution Business\nDistribution Business\nARR Item\nARR Item\n\" Controllable \" / \"\n\t\t\t\tUncontrollable\n\" Controllable \" / \"\n\t\t\t\tUncontrollable\nOperation & Maintenance Expenses\nReturn on Capital Employed\nDepreciation\nTaxes on Income\nNon-tariff income\nControllable\nControllable\nControllable\nUncontrollable\nControllable\nRetail Supply\n\t\t\t\tBusiness\nRetail Supply\n\t\t\t\tBusiness\nARR Item\nARR Item\n\"Controllable\"/\"Uncontrollable\"\n\"Controllable\"/\"Uncontrollable\"\nCost of power\n\t\t\t\tpurchase\nUncontrollable\nPass-through of gains and losses on variations in \"uncontrollable\" items of ARR:\nSharing of gains and losses on variations in \"controllable\" items of ARR:\nPart -III\nPrinciples for Computation of Aggregate Revenue Requirement",
"footnote": "",
"is_definition": false,
"sort_order": 9
},
{
"number": "11",
"title": "11. Main Items of ARR.",
"chapter": null,
"content": "a. Cost of power procurement\n}\nfor Retail Supply Business alone\nb. Transmission charges\nc. Load dispatch charges;\n(d) Operation and maintenance expenses;\n(e) Return on capital employed;\n(f) Depreciation;\n(g) Taxes on Income;\n(h) Corrections for \"uncontrollable\" items and\n\t\t\t\t\"controllable\" items (indexed to external parameters);\n(i) Any other relevant expenditure",
"footnote": "",
"is_definition": false,
"sort_order": 10
},
{
"number": "12",
"title": "12. Cost of Power Procurement.",
"chapter": null,
"content": "(a) The Commission shall adopt the Sales Forecast, the Distribution loss trajectory and the Power Procurement Plan approved as part of the Resource Plan for the purpose of determining the Power Purchase Requirement of the Distribution Licensee for the Control Period;\n(b) The power procurement plan will not generally require any revisions during the Control Period, and the Commission-approved category-wise power procurement forecast shall be applied for estimating the Distribution Licensees' power procurement requirement for each year of the Control Period;\n(c) While approving the cost of power procurement, the Commission shall determine the quantum of electricity to be procured, consistent with the power procurement plan, from various sources of supply, in accordance with the principle of merit order schedule and dispatch, based on a ranking of all approved sources of supply in the order of variable cost or price.",
"footnote": "",
"is_definition": false,
"sort_order": 11
},
{
"number": "13",
"title": "13. Transmission and Load Dispatch Charges.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 12
},
{
"number": "14",
"title": "14. Operation and Maintenance Costa.",
"chapter": null,
"content": "(a) Salaries, wages and other employee costs;\n(b) Administrative and General costs;\n(c) Repairs and maintenance, and\n(d) Other miscellaneous expenses, like legal charges, audit fees, lease charges, rent, rates and taxes, etc.",
"footnote": "",
"is_definition": false,
"sort_order": 13
},
{
"number": "15",
"title": "15. Return on Capital Employed.",
"chapter": null,
"content": "ROCE = WACC * RRB",
"footnote": "",
"is_definition": false,
"sort_order": 14
},
{
"number": "16",
"title": "16. Investment Plan.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 15
},
{
"number": "17",
"title": "17. Depreciation.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 16
},
{
"number": "18",
"title": "18. Taxes on Income.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 17
},
{
"number": "19",
"title": "19. Corrections for \"Uncontrollable\" Items and \"Controllable\" Items and Sharing of Gains/Losses of \"Controllable\" Items.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 18
},
{
"number": "20",
"title": "20. Determination of Full Cost Tariffs for Wheeling and Retail Sale of Electricity.",
"chapter": null,
"content": "Part-IV\nMiscellaneous",
"footnote": "",
"is_definition": false,
"sort_order": 19
},
{
"number": "21",
"title": "21. Periodic Reviews.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 20
},
{
"number": "22",
"title": "22. End-of-Control-Period Review.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 21
},
{
"number": "23",
"title": "23. Power to Amend.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 22
},
{
"number": "24",
"title": "24. Saving.",
"chapter": null,
"content": "",
"footnote": "",
"is_definition": false,
"sort_order": 23
}
],
"metadata": {
"Act ID": "Last Updated 12th September, 2019 [ap547]",
"Act Number": "(Regulation No.4 of 2005)",
"Enactment Date": "",
"Act Year": "2005",
"Short Title": "Andhra Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff for Wheeling and Retail Sale of Electricity) Regulation, 2005",
"Type": "STATE",
"Location": "Andhra Pradesh"
},
"updated_at": "2026-09-29 21:55:18"
}