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

{
    "id": 27083,
    "slug": "the-delhi-electricity-regulatory-commission-terms-and-conditions-for-determination-of-wheeling-tariff-and-retail-supply-tariff-regulations-2011",
    "title": "The Delhi Electricity Regulatory Commission (Terms and Conditions for Determination of Wheeling Tariff and Retail Supply Tariff) Regulations, 2011",
    "short_title": "The Delhi Electricity Regulatory Commission (Terms and Conditions for Determination of Wheeling Tariff and Retail Supply 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 Wheeling Tariff and Retail Supply Tariff) Regulations, 2011",
    "preamble": "",
    "section_label": "Section",
    "sections": [
        {
            "number": "1",
            "title": "1. Short Title, Commencement And Extent.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 0
        },
        {
            "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) \"Allocation Statement\" means for each Financial Year, a statement in respect of each of the businesses (Wheeling, Retail Supply, Other Business) of the Licensee, showing the amounts of any revenue, cost, asset, liability, reserve or provision etc, which has been either;\n(i) Determined by apportionment or allocation between different businesses of the Licensee including the Licensed Business, together with a description of the basis of the apportionment or allocation; or\n(ii) Charged from or to each such Other Business together with a description of the basis of that charge;\n(d) \"Base Year\" means the Financial Year immediately preceding first year of the Control Period;\n(e) \"Commission\" means the Delhi Electricity Regulatory Commission;\n(f) \"Conduct of Business Regulations\" means the Delhi Electricity Regulatory Commission Comprehensive (Conduct of Business) Regulations, 2001, as amended from time to time;\n(g) \"Control Period\" means a multi-year period fixed by the Commission, from 1st April 2012 and up to 31st March 2015;\n(h) \"Financial Year\" means a period commencing on 1st April of a calendar year and ending on 31st March of the subsequent calendar year;\n(i) \"Licence\" means a Licence granted under Section 14 of the Act;\n(j) \"Licensed Business\" shall mean the functions and activities, which the Licensee is required to undertake in terms of the Licence granted or being a deemed Licensee under the Act;\n(k) \"Licensee\" means a person who has been granted a Licence and shall include a deemed Licensee;\n(l) \"Non-Tariff Income\" means income relating to the Licensed business other than from tariff (Wheeling and Retail Supply), and excluding any income from Other Business, cross-subsidy surcharge and additional surcharge;\n(m) \"Other Business\" means other businesses of the Distribution Licensee under section 51 of the Electricity Act 2003;\n(n) \"Retail Supply Business\" means the business of sale of electricity by a Distribution Licensee to the category of consumers within its area of supply in accordance with the terms of the Licence for distribution and retail supply of electricity;\n(o) \"Retail Supply Tariff\" is the tariff charged by the Distribution Licensee for supply to its Customers other than open access consumer which includes charges for Wheeling and Retail Supply;\n(p) \"Trading Business\" means the business of purchase of electricity by the Distribution Licensee for resale of electricity to other Licensee or consumers or category of consumers outside the area of supply of the Distribution Licensee;\n(q) \"Wheeling\" means the operation whereby the distribution system and associated facilities of a Distribution Licensee, are used by another person for the conveyance of electricity on payment of charges to be determined under section 62;\n(r) \"Wheeling Business\" means the business of operating and maintaining a distribution system for conveyance of electricity in the area of supply of the Distribution Licensee.",
            "footnote": "",
            "is_definition": true,
            "sort_order": 1
        },
        {
            "number": "3",
            "title": "3. Scope Of Regulations And Extent Of Application.",
            "chapter": null,
            "content": "(a) Wheeling of electricity, i.e. Wheeling Tariff;\n(b) Retail sale of electricity, i.e. Retail Supply Tariff;\n(c) Provided that in case of distribution of electricity in the same area by two or more Distribution Licensees, the Commission may, for promoting competition among Distribution Licensees, fix only maximum ceiling of tariff for retail sale of electricity;\n(d) Provided further that where the Commission has permitted open access to any category of consumers under Section 42 of the Act, the Commission shall determine the Wheeling Tariff, cross-subsidy surcharge, additional surcharge and other open access related charges in accordance with these Regulations and Delhi Electricity Regulatory Commission (Terms and Conditions of Open Access) Regulations, 2005.\n(a) Wheeling Business; and\n(b) Retail Supply Business.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 2
        },
        {
            "number": "4",
            "title": "4. General Approach And Guiding Principles.",
            "chapter": null,
            "content": "(a) Business Plan of the Distribution Licensee for the entire Control Period to be submitted to the Commission for approval, prior to the start of the Control Period;\n(b) Applicant?s forecast of expected Wheeling Tariff and Retail Supply Tariff for each year of the Control Period, based on reasonable assumptions of the underlying financial and operational parameters, as submitted in the Business Plan;\n(c) 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(d) Annual review of performance shall be conducted based on the actual vis-à-vis the approved forecast and categorization of variations in performance into controllable factors and uncontrollable factors;\n(e) The Distribution Licensee?s performance vis-à-vis the AT&C loss targets specified by the Commission shall be appropriately incentivise/penalise; and\n(f) Variation in revenue / cost on account of uncontrollable factors like sales, power purchase and controllable factors - RoCE and Depreciation shall be trued up annually.\nSegregation of Wheeling and Retail Supply Business\nBaseline\nTargets for Controllable Parameters\n(a) AT&C Loss, which shall be measured as the difference between the net units input into the distribution system for sale to all its consumer and the units realised wherein the units realised shall be equal to the product of units billed and collection efficiency:\n(b) Provided that units billed shall include the units realised on account of theft measured on actual basis i.e. number of units against which payment of theft billing has been realised;\n(c) Distribution losses, which shall be measured as the difference between the net units input into the distribution system for sale to all its consumer and sum of the total energy billed in its Licence area in the same year;\n(d) Collection efficiency, which shall be measured as ratio of total revenue realised to the total revenue billed in the same year:\n(e) Provided that revenue realisation from electricity duty and late payment surcharge shall not be included for computation of collection efficiency;\n(d) 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(e) Return on Capital Employed;\n(f) Depreciation; and\n(g) Quality of Supply.\n(i) The Distribution Licensee will be eligible for incentive by the way of higher rate of Return on Equity (to be considered while calculating RoCE) as shown below for achieving lower AT&C loss level than specified in the loss reduction trajectory:\n(ii) Additional Return on Equity (%) = (X i -Y i )/(X i -1-X i )\n(iii) Where,\n(iv) X i = Target AT&C loss level for ith year,\n(v) X i -1= Target AT&C loss level for (i-1) th year,\n(vii) Y i = Actual AT&C Loss level for ith year:\n(vii) Provided that any financial loss on account of under performance with respect to AT&C loss targets shall be to the Licensee?s account.\nSales Forecast\n(a) Supply within its area of supply; and\n(b) Supply outside its area of supply.\nCapital Investment\n(a) Purpose of investment (i.e. replacement of existing assets, meeting load growth, technical loss reduction, non-technical loss reduction, meeting reactive energy requirements, customer service improvement, 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.\nQuality of Supply and Customer Service\nTrue Up\n(a) Variation in revenue / expenditure on account of uncontrollable sales / power purchase respectively shall be trued up every year;\n(b) For controllable parameters,\n(i) 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(ii) Depreciation and Return on Capital Employed shall be trued up every year based on the actual capital expenditure and actual capitalisation vis-à-vis capital investment plan (capital expenditure and capitalisation) approved by the Commission.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 3
        },
        {
            "number": "5",
            "title": "5. Principles For Determination Of ARR.",
            "chapter": null,
            "content": "Arr For Wheeling Business\n(a) Operation and Maintenance expenses;\n(b) Return on Capital Employed;\n(c) Depreciation;\n(d) Income Tax;\n(e) Interest on Consumer Security Deposit;\n(f) Less: Non-Tariff Income;\n(g) Less: Income from Other Business; and\n(h) Less: Income from wheeling of electricity.\nARR for Retail Supply Business\n(a) Cost of power procurement;\n(i) Transmission & Load Dispatch charges;\n(ii) Operation and Maintenance expenses;\n(iii) Return on Capital Employed;\n(iv) Depreciation;\n(v) Income Tax;\n(vi) Interest on Consumer Security Deposit;\n(vii) Less: Non-Tariff Income;\n(viii) Less: Income from Other Business; and\n(ix) Less: Receipts on account of cross subsidy surcharge and additional surcharge from open access customers.\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&Gn-1) * (INDX);\n(iii) INDX = 0.55 * CPI + 0.45 * WPI;\n(iv) 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(v) EMP n – Employee Costs of the Licensee for the nth year;\n(vi) A&G n – Administrative and General Costs of the Licensee for the nth year; and\n(vii) R&M n – Repair and Maintenance Costs of the Licensee for the nth year.\nWhere,\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(i)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.\nReturn on Capital Employed\nWACC=\n[\nD/E\n]\n*\nrd +\n[\n1\n]\n*\nre\n1+D/E\n1+D/E\nWorking Capital\n(a) Receivables for two months of Wheeling Charges.\n(a) Receivables for two months of revenue from sale of electricity;\n(b) Less: Power purchase costs for one month;\n(c) Less: Transmission charges for one month; and\n(d) Less: Wheeling charges for two month.\nDepreciation\nCost of Power Procurement\n(i) Provided that the Distribution Licensee shall propose the cost of power procurement taking into account the fuel adjustment formula specified for the generating stations and net revenues through bilateral exchanges and Unscheduled Interchange (UI) transactions;\n(ii) Provided further that where the Licensee utilises a part of the power purchase approved or bulk supply allocated or contracted for the Retail Supply Business for its Trading Business, the Distribution Licensee shall provide an Allocation Statement clearly specifying the cost of power purchase that is attributable to such trading activity.\nAT&C Losses\nTransmission, Load Despatch & Wheeling Charges\nCorporate Income Tax\nInterest on Consumer Security Deposits\nNon-Tariff Income\nOther Income of Licensee\nIncome from cross-subsidy surcharge and additional surcharge on charges of wheeling\nTruing Up Mechanism\n(i) Provided that if such variations are large, and it is not feasible to recover in one year alone, the Commission may take a view to create a regulatory asset, as per the guidelines provided in clause 8.2.2 of the National Tariff Policy.\n(ii) Provided further that under business as usual conditions, the Commission, to ensure tariff stability, may include the opening balances of uncovered gap / trued-up costs in the subsequent Control Period?s ARR instead of including in the year succeeding the relevant year of the control period after providing for transition financing arrangement or capital restructuring.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 4
        },
        {
            "number": "6",
            "title": "6. Quality Of Supply And Services.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 5
        },
        {
            "number": "7",
            "title": "7. Multi Year Tariff Process.",
            "chapter": null,
            "content": "Multi-Year Filings for the Control Period\nBusiness Plan Filings\n(a) Sales/Demand Forecast for each customer category and sub-categories for each year of the Control Period;\n(b) AT&C loss reduction trajectory and collection efficiency for each year of the Business Plan;\n(c) Power Procurement Plan based on the sales forecast and distribution loss trajectory for each year of the business plan period. The power procurement plan should also include Energy Efficiency and Demand Side Management measures;\n(d) The Capital Investment Plan shall take into account the sales/demand forecast, power procurement plan, distribution loss trajectory, targets for quality of supply, etc. The investment plan shall be consistent with the perspective plan drawn by the State Transmission Utility, and shall include the corresponding capitalisation schedule and financing plan;\n(e) The appropriate capital structure and cost of financing (interest on debt) and return on equity, terms of the existing loan agreements, etc;\n(f) The Operation and Maintenance (O&M) costs estimated for the Base Year and two years prior to the Base Year with complete details, together with the forecast for each year of the Business Plan Period based on the proposed efficiency in operating costs, norms for O&M cost allowance including indexation and other appropriate mechanism;\n(g) Details of depreciation based on the fair life of the asset and capitalisation schedules for each year of the Control Period;\n(h) A set of targets proposed for other controllable items such as working capital, quality of supply targets, etc. The targets shall be consistent with the capital investment plan proposed by the Licensee;\n(i) Proposals for other items such as external parameters used for indexation (inflation, etc);\n(j) The filings in addition to the Business Plan period shall also contain the data for the cost and revenue parameters for the 2002 – 2012 period.\nTariff Filing\n(a) The Distribution system or network usage forecast for each year of the Control Period consistent with the Business Plan;\n(b) Proposals for computation of tariffs for Wheeling of electricity for each of the years of the Control Period, including the losses and the procedure thereof;\n(c) Proposals for Non-Tariff Income with item-wise description and details;\n(d) Proposals in respect of income from Other Businesses like Consultancy Services, Convergence, Training Facilities, etc;\n(e) The proposed Wheeling Tariff shall be voltage-wise;\n(f) Expected Revenue from the proposed Wheeling Tariff including additional surcharge, etc.\n(a) Licensee shall submit proposal for retail sale of electricity for the consumers pertaining to Retail Supply Business, which shall include tariffs for each consumer category, slab-wise and voltage wise. The proposed tariff may also be based on energy charges, demand charges, minimum charges, etc along with the tariff rationalization measures;\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 to each category of consumers based on voltage-wise costs and losses;\n(d) The tariff proposals of the Licensee should demonstrate that the tariffs are progressively reflecting the cost of supply;\n(e) Expected Revenue from the proposed Retail Supply Tariff, and other matters considered appropriate by the Distribution Licensee, including incentive schemes to consumers, cross subsidy surcharge, etc.\nAnnual Performance Review (APR) during the Control Period\nReview at the end of the Control Period",
            "footnote": "",
            "is_definition": false,
            "sort_order": 6
        },
        {
            "number": "8",
            "title": "8. Government Support For Social Causes.",
            "chapter": null,
            "content": "Provided that the amount towards social causes and subsidy for a particular year of the Control Period shall be paid at least in four equal quarterly instalments and in advance to the period to which it is applicable;",
            "footnote": "",
            "is_definition": false,
            "sort_order": 7
        },
        {
            "number": "9",
            "title": "9. Disposal Of Application.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 8
        },
        {
            "number": "10",
            "title": "10. Periodic Reviews.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 9
        },
        {
            "number": "11",
            "title": "11. Truing Up For The Previous Control Period.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 10
        },
        {
            "number": "12",
            "title": "12. Miscellaneous.",
            "chapter": null,
            "content": "Issue 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 1\nDepreciation Schedule\nDepreciation Schedule\nS. No\nAsset Class\nUseful Life (Years)\nRate (%)\n(1)\n(2)\n(3)\n(4)\n1.\nLand owned under full title\nInfinity\n0\n2.\nLand held under lease\n(A)\nFor investment in land\nThe period of lease or the period remaining\n\t\t\t\tunexpired on the Assignment of the lease\n0\n(B)\nFor cost of clearing site\nThe period of lease remaining unexpired at the\n\t\t\t\tdate of clearing the site\n0\n3.\nAssets Purchased New\n(A)\nPlant and machinery in generating stations including plant\n\t\t\t\tfoundations\n(i)\nHydro-electric\n35\n2.57\n(ii)\nSteam-electric NHRS & Waste Heat Recovery Boilers / Plants\n25\n3.60\n(iii)\nDiesel electric & gas plant\n15\n6.00\n(B)\nCooling towers and circulating water systems\n25\n3.60\n(C)\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\tsiphons\n50\n1.80\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 other hydraulic works\n35\n2.57\n(D)\nBuilding & civil engineering works of a permanent\n\t\t\t\tcharacter, not mentioned above:\n(i)\nOffices & showrooms\n50\n1.80\n(ii)\nContaining thermo-electric generating plant\n25\n3.60\n(iii)\nContaining hydro-electric generating plant\n35\n2.57\n(iv)\nTemporary erection such as wooden structures\n5\n18.00\n(v)\nRoads other than kutcha roads\n50\n1.80\n(vi)\nOthers\n50\n1.80\n(E)\nTransformers, transformer (kiosk) sub-station equipment &\n\t\t\t\tother fixed apparatus (including plant foundations)\n(i)\nTransformers (including foundations) having a rating of 100\n\t\t\t\tkilo volt amperes and over\n25\n3.60\n(ii)\nOthers\n25\n3.60\n(F)\nSwitchgear, including cable connections\n25\n3.60\n(G)\nLightning arrestors:\n(i)\nStation type\n25\n3.60\n(ii)\nPole type\n15\n6.00\n(iii)\nSynchronous condenser\n35\n2.57\n(H)\nBatteries\n5\n18.00\n(I)\nUnderground cable including joint boxes and disconnected boxes\n35\n2.57\n(J)\nCable duct system\n50\n1.80\n(K)\nOverhead lines including supports:\n(i)\nLines on fabricated steel operating at nominal voltages higher\n\t\t\t\tthan 66 kV\n35\n2.57\n(ii)\nLines on steel supports operating at nominal voltages higher\n\t\t\t\tthan 13.2 kV but not exceeding 66 kV\n25\n3.60\n(iii)\nLines on steel or reinforced concrete supports\n25\n3.60\n(iv)\nLines on treated wood supports\n25\n3.60\n(L)\nMeters\n15\n6.00\n(M)\nSelf propelled vehicles\n5\n18.00\n(N)\nAir conditioning plants:\n(i)\nStatic\n15\n6.00\n(ii)\nPortable\n5\n18.00\n(O)\n(i)\nOffice furniture and fittings\n15\n6.00\n(ii)\nOffice equipments\n15\n6.00\n(iii)\nInternal wirings including fittings and apparatus\n15\n36.00\n(iv)\nStreet Light fittings\n15\n36.00\n(P)\nApparatus let on hire:\n(i)\nOther than motors\n5\n18.00\n(ii)\nMotors\n15\n6.00\n(Q)\nCommunication equipment\n(i)\nRadio and higher frequency carrier systems\n15\n6.00\n(ii)\nTelephone lines and telephones\n15\n6.00\n(R)\nAssets purchased in second hand and assets not otherwise\n\t\t\t\tprovided for in the schedule\nSuch reasonable period as the Commission\n\t\t\t\tdetermines in each case having regard to the nature, age and\n\t\t\t\tconditions of assets at the time of its acquisition by the owner\nAppendix 2\nSEGREGATION OF COST BETWEEN WHEELING AND RETAIL SUPPLY BUSINESS\nSEGREGATION OF COST BETWEEN WHEELING AND RETAIL SUPPLY BUSINESS",
            "footnote": "",
            "is_definition": false,
            "sort_order": 11
        },
        {
            "number": "1",
            "title": "1. Distribution Wheeling function",
            "chapter": null,
            "content": "(a) Setting of physical network-poles, wires, transmission etc., to provide electricity to consumer;\n(b) obtaining the 'right-to-way' - in order to set-up network poles, distribution wires company company should the local authorities for obtaining permission;\n(c) new connection - extension or erection, of network, so that new area loads are added to the system - either a pull or push growth phenomenon;\n(d) maintenance of network - ensuring that the network, so that the network is in good condition, available to dispatch electricity instability);\n(e) quality of supply - maintaining proper conductor, transformer loading transformer maintenance such that the consumer is assured of quality power-assured voltage, assured ampere are frequency.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 12
        },
        {
            "number": "2",
            "title": "2. Retail supply function",
            "chapter": null,
            "content": "(a) Procurement of electricity from wholesaler or bulk supplier (as mentioned earlier, the electricity generated, flows directly to consumer thought wires at various voltages).\n(b) Pricing of electricity.\n(c) Selling of electricity including the following commercial functions.\n(d) Connection of consumer to the network - on payment of certain charges and signing up to consume energy equivalent of 'x' kw of load - categorization depending on the type of service (LT - Domestic, commercial, industry of certain voltage and HT - Colonies, industries, Railways etc.)\n(e) metering of energy used by consumer - setting up meter in consumer premises, their maintenance, reading the meters at regular intervals and ensuring that energy accounting tallies up.\n(f) commercial losses - meaning that energy has been consumed but not billed, either because the consumer is not accountant or because the meters are not read properly or not working or simply theft of energy by consumer.\n(g) billing of electricity supplied - usually on variety of factors such as connected load, load factors energy demand, energy supplied consumer service etc., and approved by regulator at periodic intervals.\n(h) Collection of bills - setting up infrastructure of collecting the dues from consumers such as 'section offices, kiosks, mobiles vans, internet, cheque drop boxes, auto-debit to accounts' etc.\n(i) Disconnection of service - as per the contract with the consumer, the supplier is allowed to discontinue services to the consumer. Reconnection is possible with clearing of dues and payment of re-connecting charges.\nSegregation of Distribution in Wheeling Retail Supply\n(a) Capacity Charge\n(b) Energy charge\n(a) Employee Cost\n(b) Administration Cost\n(c) R and M Cost\n(a) Depreciation\n(b) Interest charges\n(c) Return\nCost Allocation",
            "footnote": "",
            "is_definition": false,
            "sort_order": 13
        },
        {
            "number": "1",
            "title": "1. Purchased of Electricity",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 14
        },
        {
            "number": "2",
            "title": "2. Allocation of Capital Cost",
            "chapter": null,
            "content": "(a) Depreciation: Based on the allocation of fixed assets to each function, depreciation for each asset sub-group can be proportionately allocated.\n(b) Interest and Finance Charges: Distribution company shall either identify specific loan taken for each of the business (wheeling and Retail Supply) depending on the nature of the business or allocate based upon the ration od asset allocation. The interest and finance charges can be charge to the respective function based on the loans identified.\n(c) Return: Returns shall be allocated on the proposed ration of fixed  assets between Wheeling and Retail Supply business.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 15
        },
        {
            "number": "3",
            "title": "3. Operation and Maintenance (O&M) Expenses",
            "chapter": null,
            "content": "(a) Employee Cost: To segregate the employee cost on the basis of employee requirement to undertake the Retail Supply business. Distribution Company could do an evaluation on the number of employees that could be allocated to the Retail Supply business. This evaluation could be done on a thumb rule basis:\n(i) The power purchase team/division could be allocated to the Retail Supply\n(ii) The number of employee involves in metering, billing and collection could to allocated to Retail Supply business, and\n(iii) Any other which the Distribution Company may feel relevant.\n(b) A&G Cost: A&G expenses relates to power purchase, metering, billing and  collection, financing expenses on loan related to Retail Supply business shall be allocated to Retail Supply business. Office expenses like telephone, stationary, electricity, lease rent etc., shall be apportioned between Wheeling and Rental Supply business on the basis of predominant usage concept.\n(c) R&C Expenses: R&M expenses shall be allocated on the proposed ration of fixed assets between Wheeling and Retail Supply business. For the purpose of getting more accuracy, the allocation should be done by allocating the R&M sub-heads related to specify asset category in the ratio of the respective classified under Wheeling and Retail Supply business i.e., R&M (Plant and Machinery) could be allocated in the ration of Gross fixed assets value of Plant and Machinery classified under Wheeling and Retail Supply business.\nOther/Miscellaneous Expense",
            "footnote": "",
            "is_definition": false,
            "sort_order": 16
        }
    ],
    "metadata": {
        "Act ID": "dl073",
        "Act Number": "Published vide Notification No. F.3(290)/Tariff/DERC/2011-12/C.F. 3180, dated 19th January, 2011, published in the 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 Wheeling Tariff and Retail Supply Tariff) Regulations, 2011",
        "Type": "UNION_TERRITORY",
        "Location": "Delhi"
    },
    "updated_at": "2026-09-29 21:55:22"
}