The Delhi Electricity Regulatory Commission (Terms and Conditions for Determination of Transmission Tariff) Regulations, 2011

{
    "id": 27082,
    "slug": "the-delhi-electricity-regulatory-commission-terms-and-conditions-for-determination-of-transmission-tariff-regulations-2011",
    "title": "The Delhi Electricity Regulatory Commission (Terms and Conditions for Determination of Transmission Tariff) Regulations, 2011",
    "short_title": "The Delhi Electricity Regulatory Commission (Terms and Conditions for Determination of Transmission Tariff) Regulations, 2011",
    "act_number": "Published vide Notification No. F.3(290)/Tariff/DE",
    "act_year": 2011,
    "act_type": "STATE",
    "location": "Delhi",
    "law_status": "unknown",
    "enactment_date": null,
    "description": "The Delhi Electricity Regulatory Commission (Terms and Conditions for Determination of Transmission Tariff) Regulations, 2011",
    "preamble": "",
    "section_label": "Section",
    "sections": [
        {
            "number": "1",
            "title": "1. Short Title And Extent.",
            "chapter": null,
            "content": "",
            "footnote": "",
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        },
        {
            "number": "2",
            "title": "2. Definitions And Interpretation.",
            "chapter": null,
            "content": "(a) \"Act\" means the Electricity Act, 2003 (36 of 2003), including amendments thereto;\n(b) \"Aggregate Revenue Requirement\" or \"ARR\" means for each Financial Year, the costs pertaining to the Licensed Business which are permitted, in accordance with these Regulations, to be recovered from the tariffs and charges determined by the Commission;\n(c) \"Allotted Transmission Capacity\" means and include the power transfer in MW between the specified point(s) of injection and point(s) of drawal allowed to a long-term customer on the intra-state transmission system under the normal circumstances and the expression \"allotment of capacity\" shall be construed accordingly;\nAllotted Transmission Capacity to a Long Term Transmission Customer shall be sum of the generating capacities allocated to the Long Term Transmission Customer from the State Generating Stations and Inter State Generating Stations and the contracted power, if any;\n(d) \"Applicant\" means a Transmission Licensee who has made an application for determination of transmission charge in accordance with these Regulations and includes a Transmission Licensee whose tariff is the subject of a review by the Commission;\n(e) \"Auditor\" means an auditor appointed by the transmission licensee, in accordance with the provisions of sections 224, and 619 of the Companies Act, 1956 (1 of 1956), or any other law for the time being in force;\n(f) \"Availability\" in relation to a transmission system for a given period means the time in hours during that period in which the transmission system is capable to transmit electricity at its Rated Voltage and shall be expressed in percentage of total hours in the given period, and shall be calculated as directed by the Commission;\n(g) \"Base Year\" means the Financial Year immediately preceding first year of the Control Period;\n(h) \"Beneficiary (ies)\" means both Long Term Transmission Customers and Long Term Open Access Customers. A Distribution Licensee shall necessarily be a Long Term Transmission Customer for which he shall be required to enter into a Transmission Services Agreement with the Transmission Licensee;\n(i) \"CERC\" means the Central Electricity Regulatory Commission;\n(j) \"Change in Law\" means occurrence of any of the following events:\n(i) the enactment, bringing into effect, adoption, promulgation, amendment, modification or repeal of any law; or\n(ii) change in interpretation of any law by a competent court, Tribunal or Indian Governmental Instrumentality which is the final authority under law for such interpretation; or\n(iii) change by any competent statutory authority, in any consent, approval or licence available or obtained for the project.\n(k) \"Commission\" means the Delhi Electricity Regulatory Commission;\n(l) \"Conduct of Business Regulations\" means the Delhi Electricity Regulatory Commission Comprehensive (Conduct of Business) Regulations, 2001, as amended from time to time;\n(m) \"Control Period\" means a multi-year period fixed by the Commission, from 1st April 2012 and up to 31st March 2015;\n(n) \"Date of Commercial Operation\" or 'COD' means:\nin relation to the transmission system, the date declared by the transmission licensee from 0000 hour of which an element of the transmission system is in regular service after successful charging and trial operation:\nProvided that the date shall be the first day of a calendar month and transmission charge for the element shall be payable and its availability shall be accounted for, from that date;\nProvided further that in case an element of the transmission system is ready for regular service but is prevented from providing such service for reasons not attributable to the transmission licensee, its suppliers or contractors, the Commission may approve the date of commercial operation prior to the element coming into regular service;\n(o) \"Distribution Licensee\" means a Licensee authorized to operate and maintain a distribution system for supplying electricity to the consumers in his area of supply;\n(p) \"Expenditure Incurred\" means the fund, whether the equity or debt or both, actually deployed and paid in cash or cash equivalent, for creation or acquisition of a useful asset and does not include commitments or liabilities for which no payment has been released;\n(q) \"Financial Year\" means a period commencing on 1st April of a calendar year and ending on 31st March of the subsequent calendar year;\n(r) \"Implementation Agreement\" means the agreement, contract or memorandum of understanding, or any such covenant, entered into between the transmission licensee and the long-term transmission customer for construction of the transmission system;\n(s) \"License\" means a License granted by the Commission under Section 14 of the Act;\n(t) \"Licensed Business\" means the functions and activities, which the Licensee is required to undertake in terms of the License granted by the Commission or as a deemed Licensee under the Act;\n(u) \"Licensee\" means a person who has been granted a Licence and shall include a deemed Licensee;\n(v) \"Long-Term Transmission Customer\" means a person having contractual right to use the intra-state transmission system for a period of twelve years or more and less than twenty five years by paying transmission charges;\n(w) \"Medium-term Transmission Customer\" means a person having contractual right to use the intra-state transmission system for a period exceeding three months and less than three years by paying transmission charges;\n(x) \"Non-Tariff Income\" means income relating to the Licensed Business other than from tariff (intra-state transmission of electricity), and excluding any income from Other Business;\n(y) \"Other Business\" means other business of the Transmission Licensee under section 41 of the Electricity Act 2003;\n(z) \"Open Access Customer\" means a consumer permitted by the Commission to receive supply of electricity from a person, other than Distribution Licensee of his area of supply, and the expression includes a generating company and a Licensee, who has availed of or intends to avail of open access;\n(aa) \"Original project cost\" means the capital expenditure incurred by the transmission licensee, within the original scope of the project up to the cut-off date as admitted by the Commission;\n(bb) \"Project\" means the transmission system;\n(cc) \"Rated Voltage\" means the manufacturer's design voltage at which the transmission system is designed to operate and includes such lower voltage at which any transmission line is charged or for the time being charged, in consultation with long-term transmission customers;\n(dd) \"Short-term Transmission Customer\" means a person having contractual right to use the intra-state transmission system for a period up to 1 month by paying transmission charges;\n(ee) \"State Load Despatch Centre\" or 'SLDC' means the centre established by the State Government for purposes of exercising the powers and discharging the functions under Section 31 of the Act;\n(ff) \"State\" means the National Capital Territory of Delhi;\n(gg) \"Transmission Business\" means the business of transmission of electricity by a Transmission Licensee to a Beneficiary/(ies) and permitted open access customers;\n(hh) \"Transmission Service Agreement\" means the agreement, contract, memorandum of understanding, or any such covenant, entered into between the transmission licensee and the Long-Term Transmission Customer(s) for the operation phase of Transmission System;\n(ii) \"Transmission System\" means the system consisting mainly of extra high voltage electric lines and associated equipments and substations having design voltage higher than 66 KV including any other system of lower voltage as the Transfer Scheme or the Commission may specifically recognise, owned or controlled by the Transmission Licensee, and used for the purposes of the transportation of electricity between the switchyards of two Generating Stations or from the switchyard of a Generating Station to a substation, or between substations, or to or from any external interconnection and includes all bays/equipment up to the interconnection with the Distribution System, and any plant, apparatus and meters owned or used in connection with the transmission of electricity, but shall not include any part of a Distribution System.\n(jj) \"Transmission System Availability Factor\" means Availability of the Transmission System as certified by the State Load Despatch Centre;\n(kk) \"Useful life\" in relation to a unit of a Transmission System from the COD shall mean 25 years for sub-station and 35 years for transmission line;",
            "footnote": "",
            "is_definition": true,
            "sort_order": 1
        },
        {
            "number": "3",
            "title": "3. Scope Of Regulations And Extent Of Application.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 2
        },
        {
            "number": "4",
            "title": "4. General Approach And Guiding Principles.",
            "chapter": null,
            "content": "(a) Business Plan of the Transmission Licensee for the entire Control Period to be submitted to the Commission for approval, prior to the start of the Control Period;\n(b) Trajectory for specific parameters shall be stipulated by the Commission, where the performance of the Applicant is sought to be improved through incentives and disincentives;\n(c) Annual review of performance shall be conducted vis-a-vis the approved forecast.\nBaseline\nCapital Investment Plan\n(a) Purpose of investment (i.e. replacement of existing assets, meeting load growth, technical loss reduction, meeting reactive energy requirements, improvement in quality and reliability of supply, etc) ;\n(b) Capital Structure;\n(c) Capitalization Schedule;\n(d) Financing Plan;\n(e) Cost-benefit analysis;\n(f) Performance improvement envisaged in the Control Period.\nRenovation and Modernisation\nTargets for Controllable parameters\n(a) Availability of the Transmission System;\n(b) Operation and Maintenance Expenditure which includes employee expenses, repairs and maintenance expenses, administration and general expenses and other miscellaneous expenses viz. audit fees, rents, legal fees etc;\n(c) Return on Capital Employed; and\n(d) Depreciation.\nTruing Up\n(a) Any surplus or deficit on account of Operation and Maintenance (O&M) expenses shall be to the account of the Licensee and shall not be trued up in ARR; and\n(b) Depreciation and Return on Capital Employed shall be trued up at the end of Control Period based on the actual capital expenditure and actual capitalisation vis-à-vis capital investment plan (capital expenditure and capitalisation) approved by the Commission;\n(c) Provided that in case any change to capital investment plan for the Control Period as per the regulation 4.10, depreciation and return on capital employed shall be adjusted during the mid term review based on the actual capital expenditure, actual capitalisation and revised capital investment plan (capital expenditure and capitalisation schedule) approved by the Commission.",
            "footnote": "",
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        },
        {
            "number": "5",
            "title": "5. Principles For Determination Of ARR.",
            "chapter": null,
            "content": "Operational Norms\n(a) Normative Annual Transmission System Availability Factor(NATAF): The Target Availability for recovery of full annual transmission charges during the Control Period shall be as under:\n(b) AC system: 98.0%\n(c) Recovery of full annual transmission charges below the target availability shall be on a pro rata basis.\nARR for Transmission Business\n(i) Operation and Maintenance expenses;\n(ii) Return on Capital Employed;\n(iii) Depreciation;\n(iv) Income Tax;\n(v) Less: Non-Tariff Income ; and\n(vi) Less: Income from Other Business.\nOperation and Maintenance Expenses\n(a) Salaries, wages, pension contribution and other employee costs;\n(b) Administrative and General expenses;\n(c) Repairs and Maintenance; and\n(d) Other miscellaneous expenses, statutory levies and taxes (except corporate income tax).\n(a) O&M n = (R&M n + EMP n + A&G n ) * (1 – X n )\nWhere,\n(i) R&M n = K * GFA n-1 ;\n(ii) EMP n + A&G n = (EMP n-1 + A&G n-1 ) * (INDX); and\n(iii) INDX = 0.55 * CPI + 0.45 * WPI\n(iv) EMP n – Employee Costs of the Licensee for the nth year;\n(v) A&G n – Administrative and General Costs of the Licensee for the nth year;\n(vi) R&M n – Repair and Maintenance Costs of the Licensee for the nth year;\n(vii) X n is an efficiency factor for nth year. Value of Xn shall be determined by the Commission in the MYT Tariff order based on Licensee's filing, benchmarking, approved cost by the Commission in past and any other factor the Commission feels appropriate.\n(i) 'K' is a constant (could be expressed in %). Value of K for each year of the Control Period shall be determined by the Commission in the MYT Tariff order based on Licensee's filing, benchmarking, approved cost by the Commission in past and any other factor considered appropriate by the Commission;\n(ii) INDX - Inflation Factor to be used for indexing. Value of INDX shall be a combination of the Consumer Price Index (CPI) and the Wholesale Price Index (WPI) for immediately preceding ten years before the base year;\n(i=1),\n(i) Receivables for two months towards transmission tariffs calculated on NATAF;\n(ii) Maintenance spares @ 15% of operation and maintenance expenses ; and\n(iii) Operation and maintenance expenses for one month.\nRoCE=WACC i *RRB i\nWACC=\n[\nD/E\n]\n*\nrd +\n[\n1\n]\n*\nre\n1+D/E\n1+D/E\nDepreciation\n(i) Provided that depreciation shall not be allowed on assets funded by any capital subsidy / grant.provision for replacement of such assets shall be made in the Capital Investment Plan;\n(ii) Provided further that the Licensee shall submit year-wise details of the assets which have completes its useful life.\nTax on Income\nNon-Tariff Income\nOther Income of the Transmission Licensee\nLate Payment Surcharge\nRebate\nQuality of Supply\n(a) Transmission System Availability\n(b) Transformer Failure, across various capacities which represents the number of transformer failures as a percentage of the total number of transformers in that specified capacity within the Transmission System, over a specified period of time.\nSafety Standards",
            "footnote": "",
            "is_definition": false,
            "sort_order": 4
        },
        {
            "number": "6",
            "title": "6. Principles For Determination Of Tariff.",
            "chapter": null,
            "content": "Separation of Transmission and SLDC functions\nTransmission Tariff\nSLDC Charges\nAnnual Transmission Service Charge\nAllocation of Transmission Service Charge",
            "footnote": "",
            "is_definition": false,
            "sort_order": 5
        },
        {
            "number": "7",
            "title": "7. Multi Year Tariff Filing Procedure.",
            "chapter": null,
            "content": "Multi-Year Filings for the Control Period\nBusiness Plan Filings\n(a) Capital Investment Plan: This should be commensurate with load growth and quality improvement proposed in the Business Plan. The investment plan should also include corresponding capitalisation schedule and financing plan;\n(b) The appropriate capital structure and cost of financing (interest on debt) and return on equity, terms of the existing loan agreements, etc;\n(c) Operation and Maintenance (O&M) expenses: This shall include the costs estimated for the Base Year, the actual expenses incurred in the previous control period and the projected values for each year of the Control Period based on the proposed norms for O&M cost, including indexation and other appropriate mechanisms;\n(d) Depreciation: Based on the fair life of the asset and capitalisation schedules for each year of the Control Period;\n(e) Performance Targets: A set of targets proposed for controllable items such as Availability of transmission system, transformer failure rate, and any other parameters for quality of supply. The targets shall be consistent with the Capital Investment Plan proposed by the Transmission Licensee;\n(f) Proposals for Non-Tariff Income with item-wise description and details;\n(g) Proposals in respect of income from Other Business;\n(h) Other Information: This shall include any other details considered appropriate by the Transmission Licensee for consideration during determination of tariff; and\n(i) SLDC Charges.\nTariff Filing\n(a) The Transmission System or network usage forecast for each year of the Control Period, consistent with the Business Plan;\n(b) Proposals for transmission tariff design for each year of the Control Period, including the losses to be charged and the procedure thereof;\n(c) Proposal for transmission tariff rate for the each year of the Control Period supported by adequate justification;\n(d) Proposal for reactive energy charges;\n(e) Proposal for SLDC charges; and\n(f) Expected Revenue from the Licensed Business, Non-Tariff Income and income from Other Business and other matters considered appropriate by the Transmission Licensee.\nAnnual Performance Review during the Control Period\nReview at the end of the Control Period",
            "footnote": "",
            "is_definition": false,
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        },
        {
            "number": "8",
            "title": "8. Disposal Of Application.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 7
        },
        {
            "number": "9",
            "title": "9. Periodic Reviews.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 8
        },
        {
            "number": "10",
            "title": "10. Miscellaneous.",
            "chapter": null,
            "content": "Sharing of Clean Development Mechanism (CDM) benefits\n(i) 100% of the proceeds on account of CDM to be retained by the project developer in the first year (12 months) after the date of commercial operation of the transmission system;\n(ii) in the second year, the share of the beneficiaries shall be 10% which shall be progressively increased by 10% every year till it reaches 50%. Whereafter the proceeds shall be shared in equal proposition, by the transmission licensee and the users.\nForeign Exchange Rate Variation\nRecover of cost of hedging Foreign Exchange Rate Variation\nIssue of Orders and Practice Directions\nPowers to remove difficulties\nPower of Relaxation\nInterpretation\nSaving of Inherent Powers of the Commission\nEnquiry and Investigation\nPower to Amend\nAppendix-I\nDepreciation Schedule\nDepreciation Schedule\nS. No\nAsset Particulars\nDepreciation Rate (Salvage value=10%)\n(1)\n(2)\n(3)\nSLM\nA\nLand owned under full ownership\n0.00%\nB\nLand under lease\n(a)\nFor investment in land\n3.34%\n(b)\nFor cost of clearing site\n3.34%\nC\nAssets Purchased New\na.\nPI & machinery in generating stations\n(i)\nHydro-electric\n5.28%\n(ii)\nSteam-electric NHRB & Waste Heat Recovery Boilers\n5.28%\n(iii)\nDiesel electric & gas plant\n5.28%\nb.\nCooling towers and circulating water systems\n5.28%\nc.\nHydraulic works forming part of hydro-electric system\n\t\t\t\tincluding:\n(i)\nDams, spillways weirs, canals, reinforced concrete flumes &\n\t\t\t\tsyphons\n5.28%\n(ii)\nReinforced concrete pipelines and surge tanks, steel\n\t\t\t\tpipelines, sluice gates, steel surge (tanks) hydraulic control\n\t\t\t\tvalves and hydraulic works\n5.28%\nd.\nBuilding & civil engineering works of a permanent\n\t\t\t\tcharacter, not mentioned above:\n(i)\nOffices & showrooms\n3.34%\n(ii)\nContaining thermo-electric generating plant\n3.34%\n(iii)\nContaining hydro-electric generating plant\n3.34%\n(iv)\nTemporary erection such as wooden structures\n100.00%\n(v)\nRoads other than kutcha roads\n3.34%\n(vi)\nOthers\n3.34%\ne.\nTransformers, kiosk sub-station equipment & other fixed\n\t\t\t\tapparatus (including plant foundations)\n(i)\nTransformers (including foundations) having a rating of 100\n\t\t\t\tkilo volt amperes and over\n5.28%\n(ii)\nOthers\n5.28%\nf.\nSwitchgear, including cable connections\n5.28%\ng.\nLightning arrestors:\n(i)\nStation type\n5.28%\n(ii)\nPole type\n5.28%\n(iii)\nSynchronous condenser\n5.28%\nh.\nBatteries\n5.28%\n(i)\nUnderground cable including joint boxes and disconnected boxes\n5.28%\n(ii)\nCable duct system\n5.28%\ni.\nOverhead lines including cable support\n(i)\nLines on fabricated steel operating at terminals voltages\n\t\t\t\thigher than 66 kV\n5.28%\n(ii)\nLines on steel supports operating at terminal voltages higher\n\t\t\t\tthan 13.2 kV but not exceeding 66 kV\n5.28%\n(iii)\nLines on steel or reinforced concrete supports\n5.28%\n(iv)\nLines on treated wood supports\n5.28%\nj.\nMeters\n5.28%\nk.\nSelf propelled vehicles\n9.50%\nl.\nAir conditioning plants:\n(i)\nStatic\n5.28%\n(ii)\nPortable\n9.50%\nm.\n(i)\nOffice furniture and furnishings\n6.33%\n(ii)\nOffice equipments\n6.33%\n(iii)\nInternal wirings including fittings and apparatus\n6.33%\n(iv)\nStreet Light fittings\n5.28%\nn.\nApparatus let on hire:\n(i)\nOther than motors\n9.50%\n(ii)\nMotors\n6.33%\no.\nCommunication equipment\n(i)\nRadio and higher frequency carrier systems\n6.33%\n(ii)\nTelephone lines and telephones\n6.33%\np.\nIT Equipments\n15.00%\nq.\nAny other assets not covered above\n5.28%\nAppendix-II\nProcedure for Calculation of Transmission System Availability Factor for a Month\nProcedure for Calculation of Transmission System Availability Factor for a Month",
            "footnote": "",
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        }
    ],
    "metadata": {
        "Act ID": "dl072",
        "Act Number": "Published vide Notification No. F.3(290)/Tariff/DERC/2011-12/C.F. 3180, dated 19th January, 2011, published in Delhi Gazette, Extra, Pt. III, No. 1, dated 19th January, 2011",
        "Enactment Date": "",
        "Act Year": "2011",
        "Short Title": "The Delhi Electricity Regulatory Commission (Terms and Conditions for Determination of Transmission Tariff) Regulations, 2011",
        "Type": "UNION_TERRITORY",
        "Location": "Delhi"
    },
    "updated_at": "2026-09-29 21:55:22"
}