DERC (Business Plan) Regulations, 2023

DELHI ELECTRICITY REGULATORY COMMISSION
BUSINESS PLAN REGULATIONS, 2023

DERC (BUSINESS PLAN) REGULATIONS, 2023

NEW DELHI
DELHI ELECTRICITY REGULATORY COMMISSION (BUSINESS PLAN) REGULATIONS, 2023
F.3(679)/Tariff/DERC/2022-23/7460: In exercise of powers conferred under Section 181 read
with Section 61 and Section 86(1)(b) of the Electricity Act, 2003 (Act 36 of 2003) and all other
powers enabling it in this behalf and after previous publication, the Delhi Electricity Regulatory
Commission hereby notifies the following Regulations namely:
PART 1
PRELIMINARY
1. SHORT TITLE, COMMENCEMENT AND EXTENT

(1) These Regulations shall be called the Delhi Electricity Regulatory Commission (Business
Plan) Regulations, 2023 and shall be applicable from 1/04/2023.
(2) These Regulations shall remain in force for a Control Period, as stipulated in Regulation 2
(24) of Delhi Electricity Regulatory Commission (Terms and Conditions for Determination
of Tariff) Regulations, 2017, of 3 (three) years i.e., for FY 2023-24, FY 2024-25 and
FY 2025-26, unless reviewed earlier.
(3) The period of validity of these Regulations may be extended by the Commission, as
deemed fit and the Operational Norms may also be extended as per the principles laid
down in these Regulations:
Provided that the target for reduction in Distribution Loss for extended period
shall be determined by the Commission based on the approved values by the Commission
in the past, latest Audited Accounts, estimate of the actual for the relevant years,
Prudence Check and other factors considered appropriate by the Commission.
(4) These Regulations shall extend to the whole of National Capital Territory of Delhi.
2. DEFINITIONS AND INTERPRETATION
In these Regulations, unless the context otherwise requires, words and expressions used in
these Regulations shall have the same meaning as defined in Delhi Electricity Regulatory
Commission (Terms and Conditions for Determination of Tariff) Regulations, 2017;
Words and expressions used but not defined in these Regulations, shall have
the same meaning as assigned to it in the Electricity Act 2003 or any other law framed
under the said Act by the Commission.
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PART 2
BUSINESS PLAN FOR GENERATING ENTITY
3. RATE OF RETURN ON EQUITY:

Return on Equity in terms of Regulation 4(1) of the DERC (Terms and Conditions for
Determination of Tariff) Regulations, 2017 for Generating Entity shall be computed at the
Base Rate of 13.00% on post tax basis:
Provided that the Equity for the purpose of Return on Equity shall be lower
of the Normative Equity determined as per Regulation 63 of the DERC (Terms And
Conditions For Determination of Tariff) Regulations, 2017 or Equity available as per
Audited Financial Statement of the relevant year.
4. TAX ON RETURN ON EQUITY:

The Base rate of Return on Equity as allowed by the Commission under Regulation 3 of
these Regulations, shall be grossed up with the Minimum Alternate Tax or Effective Tax
Rate of the respective Financial Year in terms of Regulation 72 and 73 of the DERC (Terms
and Conditions for Determination of Tariff) Regulations, 2017, as per the following formula:
Rate of Return on Equity= 13.00/[(100-Tax Rate)/100]
where, Tax Rate is Minimum Alternate Tax (MAT) or Effective Tax Rate, as the case
may be.
Provided that Effective Tax Rate of each Financial Year shall be derived from the
respective Income Tax returns.
5. MARGIN FOR RATE OF INTEREST ON LOAN:

The Rate of Interest on Loan for a Financial Year shall be Marginal Cost of Fund based
Lending Rate (MCLR) of SBI as on 1st April of that Financial Year plus the Margin. The Margin,
in terms of Regulation 4(2) of the DERC (Terms and Conditions for Determination of Tariff)
Regulations, 2017 for the Generating Entity, is allowed as the difference between the
Weighted Average Rate of Interest on Actual Loan Portfolio and the MCLR as on 1st April of
that Financial Year:
Provided that Weighted Average Rate of Interest for any Financial Year shall be
arrived by including the Interest Paid, all Bank Charges, Syndication Fee and other Charges
paid during that year for Raising and Maintaining of the respective loans.
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Provided that Margin shall not exceed 3.00%, 2.50% and 2.25% for the First, Second
and Third year of the Control Period, respectively:
Provided further also that the Rate of Interest on Loan (MCLR plus Margin) in any
case shall not exceed Base Rate of Return on Equity.
6. OPERATION AND MAINTENANCE EXPENSES:
(1) Normative Operation and Maintenance Expenses for the Control Period, after considering
Inflationary Growth Rate of 4.66%, for the Generating Entities shall be as follows :
Table 1: O&M Expenses (Rs. Crore)
Station FY 2023-24 FY 2024-25 FY 2025-26
Gas Turbine Power Station (GTPS)* 33.11 34.65 36.27
Pragati Power Station (PPS-I) 77.80 81.42 85.21
* For 90 MW (As per Commission’s Order dated 24/03/2021)
(2) The impact of actual implementation of Seventh Pay Revision and Interim Relief has been
considered in above tabulated normative O&M Expenses.
(3) The O&M expenses shall be allowed during True-up after considering the actual O&M
expenses subject to Prudence Check which will be lower of Actual or above tabulated
Normative O&M expenses.
Provided that Actual O&M Expenses shall be allowed for 120 MW of GTPS operating
in Synchronous Condenser Mode, as mandated in Order dated 24/03/2021.
(4) The expenses towards Additional Repair & Maintenance expenses on account of Dry Low
NOx (DLN) burners and Sewage Treatment Plant (STP) have not been considered in
above tabulated Normative O&M expenses and the same if any, shall be allowed on
actual basis during the Control Period after Prudence Check at the time of True-Up on
submission of Documentary Evidence.
(5) The Generating Companies are expected to be Efficient in their Operations and reduce the
normative O&M Expenses. The savings, if any in such O&M expenses shall be adjusted
towards Revenue side. The saving in such O&M expenses upto 1% shall be passed towards
the Beneficiaries and any savings in normative O&M expenses above 1% shall be shared
between the Generating Company and Beneficiaries equally.
7. CAPITAL INVESTMENT PLAN:

(1) The tentative Capital Investment plan for the Generation Entities for FY 2023-24 to
FY 2025-26 is as follows:
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Table 2: Capital Investment plan (Rs. Crore)

Sr. No. Plant FY 2023-24 FY 2024-25 FY 2025-26
1. Gas Turbine Power Station (GTPS) 25 5 0
2. Pragati Power Station (PPS-I) 36 2 0
(2) The Capital investment and the respective scheduled date of Commissioning, submitted
by the Generating Entity in the Annual Tariff Petition, shall form the basis for
computation of Annual Fixed Cost in terms of Regulation 99 of the DERC (Terms and
Conditions for Determination of Tariff) Regulations, 2017 :
Provided that any improvement in operational parameters resulting from

commissioning of the scheme due to any Additional Capital Investment in existing
generating stations shall form the basis for computing the Energy Charge Rate, from the
scheduled date of commissioning of the respective schemes, in terms of Regulation 103
of the DERC (Terms and Conditions for Determination of Tariff) Regulations, 2017.
(3) Capital cost shall be trued up annually and financial impact on account of variation in
projected capital cost in the Tariff Order vis-a-vis Actual Capital Cost and Scheduled
Date of Commissioning vis-a-vis actual date of commissioning shall be dealt as per the
provisions of Regulations 61, 62 and 150 of the DERC (Terms and Conditions for
Determination of Tariff) Regulations, 2017.
8. NORMS OF OPERATION FOR GENERATING STATIONS:

(1) Normative Annual Plant Availability Factor and Normative Annual Plant Load Factor for
existing generating stations of Delhi shall be as follows:
Table 3: Normative Availability and Load Factor
Normative Annual Plant Normative Annual Plant
Generating Station
Availability Factor (NAPAF) Load Factor (NAPLF)
Gas Turbine Power Station (GTPS) 85% 85%
Pragati Power Station (PPS-I) 90% 85%
(2) Gross Station Heat Rate for existing Generating Stations of Delhi shall be as follows:
Table 4: Gross Station Heat Rate (GHR)
Combined Cycle Open Cycle
Sr. No Generating Station
(kCal/ kWh)
1 Gas Turbine Power Station (GTPS) 2450 3125
2 Pragati Power Station (PPS-I) 1975 2900
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(3) Auxiliary Energy Consumption for existing Gas based Generating Stations of Delhi shall
be as follows:
Table 5: Auxiliary Energy Consumption (%)
Gas Turbine Power Station Pragati Power Station
Sr. No Mode of operation
(GTPS) (PPS-I)
1 Combined Cycle 2.75% 2.30%
2 Open Cycle 1.00% 1.00%
9. INCENTIVE:
(1) Incentive to a Generating Entity or unit thereof shall be payable at the rate of 65 paisa/
kWh for ex-bus scheduled energy during Peak Hours and at the rate of 50 paisa/ kWh for
ex-bus scheduled energy during other hours corresponding to scheduled generation in
excess of ex-bus energy corresponding to Normative Annual Plant Load Factor (NAPLF)
achieved on a cumulative basis in accordance with Regulation 8(1) of these Regulations:
Provided that such incentive shall not be applicable on energy generated due to
Forced Scheduling as certified by Delhi SLDC.
(2) Peak hours and other hours shall be as per the slots defined in Order for Time of Day (ToD)
Tariff issued in terms of the Regulation 133 & 153 of the DERC (Terms and Conditions for
Determination of Tariff) Regulations, 2017:
Provided that in the absence of a separate Order, the Peak hours shall be taken
as specified in the Tariff Order of the Distribution Licensees.
10. INCENTIVE SHARING MECHANISM WITH RESPECT TO OPERATIONAL PARAMETERS:

(1) The incentive sharing mechanism with respect to operational parameters in terms of
Regulation 149 of the DERC (Terms and Conditions for Determination of Tariff)
Regulations, 2017 shall be applicable on controllable parameters viz. Gross Station Heat
Rate (GHR) and Auxiliary Energy Consumption.
(2) The Net Gain shall be calculated as under -
Net Gain = (Normative ECR– Actual ECR) x Actual Generation

Where,
Normative Energy Charge rate shall be computed on the basis of norms specified
for Station Heat rate and Auxiliary Energy Consumption,
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Actual Energy Charge rate shall be computed on the basis of actual Station Heat
rate and Auxiliary Energy Consumption.
(3) The Net Gain shall be computed as above on annual basis and shall be shared equally
between the Generating Entity and the beneficiaries.
11. INCENTIVE SHARING MECHANISM FOR RE-FINANCING OF LOAN:

(1) The incentive due to lower rate of interest on account of Re-financing of loan in terms of
Regulation 71 of the DERC (Terms and Conditions for Determination of Tariff) Regulations,
2017 from FY 2023-24 to FY 2025-26 of the Generation Entity shall be computed as the
product of total quantum of loan availed and difference of weighted average rate of
interest on actual loans versus margin of 1.00% plus (+) SBI MCLR as on the first day of
every Financial Year.
(2) The incentive on account of Re-financing of loan computed as per sub clause (1) above shall
be shared equally between the Beneficiaries and the Generation Entity.
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PART-3
BUSINESS PLAN FOR TRANSMISSION LICENSEE
Return on Equity in terms of Regulation 4(1) of the DERC (Terms and Conditions for
Determination of Tariff) Regulations, 2017 for Transmission Licensee shall be computed at
the Base Rate of 13.00% on post tax basis:
Provided that the Equity for the purpose of Return on Equity shall be lower of
the Normative Equity determined as per Regulation 63 of the DERC (Terms And
Conditions For Determination of Tariff) Regulations, 2017 or Equity available as per
Audited Financial Statement of the relevant year.

The Base rate of Return on Equity as allowed by the Commission under Regulation 12 of
these Regulations shall be grossed up with the Minimum Alternate Tax or Effective Tax Rate
of the respective Financial Year in terms of Regulation 72 and 73 of the DERC (Terms and
Conditions for Determination of Tariff) Regulations, 2017, as per the following formula:
where, Tax Rate is Minimum Alternate Tax (MAT) or Effective Tax Rate, as the
case may be.
The Rate of Interest on Loan for a Financial Year shall be Marginal Cost of Fund based
Regulations, 2017 for the Transmission Licensee, is allowed as the difference between
the Weighted Average Rate of Interest on Actual Loan Portfolio and the MCLR as on 1st April
of that Financial Year:
paid during that year for Raising and Maintaining of the respective loans.
Provided that Margin shall not exceed 3.00%, 2.50% and 2.25% for the First, Second
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and Third year of the Control Period, respectively:

case shall not exceed Base Rate of Return on Equity.

(1) The Normative Operation and Maintenance Expenses of a Transmission Licensee for the
Control Period, after considering Inflationary Growth Rate of 4.66%, shall be as follows:
Table 6: Operation and Maintenance Expenses (Rs. Crore)

O&M Expenses FY 2023-24 FY 2024-25 FY 2025-26
Annual O&M Expenses 353.60 370.07 387.30
(2) The impact of actual implementation of Seventh Pay Revision and Interim Relief has been
considered in above tabulated Normative O&M Expenses.
(3) The O&M expenses shall be allowed during True-up after considering the Actual O&M
expenses subject to Prudence Check which will be lower of Actual or above tabulated
Normative O&M expenses.
(4) The Transmission Licensee shall be allowed Land Licence Fee and Security Expenses
separately on actual basis at the time of truing-up of ARR for the relevant Financial Year
subject to Prudence Check since the said expenses have not been considered in above
tabulated Normative O&M Expenses.
(5) The Transmission Licensee is expected to be Efficient in its Operations and reduce the
towards Revenue side. The saving in such O&M expenses upto 1% shall be passed towards
the Beneficiaries and any savings in normative O&M expenses above 1% shall be shared
between the Transmission Licensee and Beneficiaries equally.

(1) The tentative Capital Investment Plan for the Transmission Licensee for FY 2023-24 to
FY 2025-26 is as follows:
Table 7: Capital Investment Plan (Rs. Crore)

Particulars FY 2023-24 FY 2024-25 FY 2025-26
Capitalization 493 1183 1006
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Provided that above tabulated Capitalisation may undergo revision subject to Tariff
based Competitive Bidding in the Intra-State Transmission Network.
(2) Employee Expenses and A&G Expenses shall be allowed to be capitalized equivalent to
lower of 30% of (total Employee Expenses and A&G Expenses) or actuals in construction
of projects in a particular financial year.
(3) The Capital investment and the respective Scheduled Date of Commissioning, submitted
by the Transmission Licensee in the Annual Tariff Petition, shall form the basis for
computation of Annual Fixed Cost in terms of Regulation 111 of the DERC (Terms and
Conditions for Determination of Tariff) Regulations, 2017.
(4) Capital cost shall be trued up annually and financial impact on account of variation in
projected capital cost in the Tariff Order vis-à-vis Actual Capital Cost and Scheduled Date
of Commissioning vis-a-vis Actual Date of Commissioning shall be dealt as per the
provisions of Regulations 61, 62 and 150 of the DERC (Terms and Conditions for
Determination of Tariff) Regulations, 2017.
17. NORMS OF OPERATION FOR TRANSMISSION BUSINESS:

(1) Normative Annual Transmission System Availability Factor (NATAF) for recovery of
Annual Fixed Charges for AC System shall be considered at 98.50%.
(2) Transmission System Availability shall be computed as per the Formulae and
Methodology specified in Appendices-I, II and III of these Regulations.
18. TRANSMISSION CHARGES FOR TRANSMISSION LICENSEE:
The Transmission Charges (inclusive of incentive) for AC system to be billed, in terms of
Regulation 112 to 115 of the DERC (Terms and Conditions for Determination of Tariff)
Regulations, 2017, for a calendar month for Transmission System or part thereof shall be
computed as follows:
a) For TAFM ≤ 98.50% AFC x (NDM/NDY) x (TAFM/98.50%)

b) For 98.50% < TAFM ≤ 99.00% AFC x (NDM/NDY) X 1
c) For 99.00% < TAFM ≤ 99.75% AFC x (NDM/NDY) x (TAFM/98.50%)
d) For TAFM > 99.75 % AFC x (NDM/NDY) x (99.75%/98.50%)
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Where,
AFC = Annual Fixed Cost specified for the year in Rupees

NATAF = Normative Annual Transmission availability factor, in per cent
NDM = Number of days in the month
NDY = Number of days in the year
TAFM = Transmission System availability factor for the month

(1) The incentive due to lower rate of interest on account of Re-financing of loan in terms of
2017 from FY 2023-24 to FY 2025-26 of the Transmission Licensee shall be computed as
the product of total quantum of loan availed and difference of Weighted Average Rate of
Interest on Actual Loans versus Margin of 1.00%plus (+) SBI MCLR.
(2) The incentive on account of Re-financing of loan computed as per sub clause (1) above
shall be shared equally between the Beneficiaries and the Transmission Licensee.
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PART 4
BUSINESS PLAN FOR DISTRIBUTION LICENSEE
(1) Return on Equity in terms of Regulation 4(1) of the DERC (Terms and Conditions for
Determination of Tariff) Regulations, 2017 shall be computed at the Base Rate of 14.00% on
post tax basis for Wheeling and Retail Business as a whole.
Provided that the Commission shall determine Return on Equity separately for
Wheeling and Retail business when such activities will be performed by different entities.
(2) Carrying Cost: Return on Equity in terms of Regulation 2(16) of the DERC (Terms and
Conditions for Determination of Tariff) Regulations, 2017 shall be considered at Base Rate
of Return on Equity minus One (1.00%) percent i.e., 13.00% on pre-tax basis for
computation of Weighted Average Rate of Interest for funding of Regulatory
Asset/Accumulated Revenue Gap through 70% Debt and 30% Equity.
(3) The Equity for the purpose of Return on Equity for Wheeling and Retail Business shall be
lower of the Normative Equity determined as per Regulation 63 of the DERC (Terms And
Conditions For Determination of Tariff) Regulations, 2017 or Equity available as per Audited
Financial Statement of the relevant year:
Provided that balance Equity after funding requirement of capitalisation as per
Audited Financial Statement shall be first utilised towards funding of accumulated Revenue
Gap and thereafter investments, if any.

The Base Rate of Return on Equity as allowed by the Commission under Regulation 20 (1)
of these Regulations shall be grossed up with the Minimum Alternate Tax or Effective Tax
Rate of the respective financial year in terms of Regulation 72 and 73 of the DERC (Terms
and Conditions for Determination of Tariff) Regulations, 2017, as per the following formula:
where, Tax Rate is Minimum Alternate Tax (MAT) or Effective Tax Rate, as
the case may be.
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(1) The Rate of Interest on Loan for a Financial Year shall be Marginal Cost of Fund based
Regulations, 2017 towards Capitalisation of Assets, Working Capital and Regulatory
Assets for Distribution Licensee, is allowed as the difference between the Weighted
Average Rate of Interest on Actual Loan Portfolio and the MCLR as on 1st April of that
Financial Year:
paid during that year for Raising and Maintaining of the respective loans;
Provided that Margin shall not exceed 3.00%, 2.50% and 2.25% for the First,
Second and Third year of the Control Period, respectively;
case shall not exceed Base Rate of Return on Equity minus One (1.00%) percent, accordingly,
maximum rate of Interest on Loan for all power utilities shall be 13.00%.
(2) The Distribution Licensee shall follow transparent mechanism to avail Loans and, to the
extent possible, shall invite Open Tender for availing Loans.

(1) Normative Operation and Maintenance expenses are being determined in terms of
Regulation 4(3) and Regulation 92 of the DERC (Terms and Conditions for Determination of
Tariff) Regulations, 2017.
(2) The Distribution Licensee shall be allowed own (Auxiliary) consumption including E-Vehicle
Charging Stations installed at Distribution Licensee offices and sub-stations, at Zero Tariff for
actual recorded consumption subject to a maximum of 0.25% of total sales excluding own
consumption to its retail consumers for the relevant financial year as part of O&M expenses
for the relevant year.
(3) Actual recorded own (Auxiliary) consumption in excess of 0.25% of total sales excluding own
consumption to its Retail consumers for the relevant Financial Year, shall be billed at Non
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Domestic Tariff of respective year’s Tariff Schedule and shall form part of Revenue Billed and
Collected for the same year.
(4) The Distribution Licensee shall be allowed O&M expenses for a particular Financial Year of
the Control Period by multiplying the normative rate per unit defined herewith of that
particular year with the Trued-up sales during the relevant Financial Year.
Provided that, under no circumstances, Distribution Licensees shall be allowed O&M
Expenses more than the Actual O&M Expenses as per Audited Books of Accounts during
True-up of relevant Financial Year.
(5) The Employee benefits pertaining to Employees transferred under the Tripartite Agreement
are considered uncontrollable in nature, therefore not forming part of Normative O&M
Expenses as tabulated below, accordingly, shall be Trued up for relevant Financial year
subject to prudence check:
Provided that the Distribution Licensee shall submit the above details of Employee
Expenses within thirty (30) days from the end of finalization of audited accounts of the
relevant year.
(6) Expenses on account of Statutory Levies towards Property Tax/ Land Licence Fee to GoNCTD,
Licence Fee paid to DERC shall be Trued up for relevant Financial year subject to prudence
check:
Provided that the Distribution Licensee shall submit the above details of O&M
expenses within thirty (30) days from the end of finalization of audited accounts of the
relevant year;
Provided also that any expense in the nature of statutory levies already forming part
of the actual O&M expenses and considered in the O&M Expense norms of the Distribution
Licensee shall not be allowed separately.
(7) The Legal Expenses including that on account of cases filed against the Orders or Regulations
of the Commission before any Court and the legal claims (compensation/penalty) paid to the
consumer, if any, shall not be allowed in the Aggregate Revenue Requirement (ARR).
(8) The Performance Related Incentives forming part of Employees Salary and not out of Profit
of Company shall be allowed subject to Prudence Check.
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(9) The expenses on account of Corporate Social Responsibility of the Licensee shall not be
allowed in the ARR.
(10) The Normative Operation and Maintenance Expenses of a Distribution Licensees for the
Control Period, after considering Inflationary Growth Rate of 4.66% , shall be as follows:
Table 8: Norms of O&M Expenses for DISCOMs for the Control Period
[Rate / Unit of sale (Paise)]
Distribution Licensees FY 2023-24 FY 2024-25 FY 2025-26
BRPL 54.72 54.92 55.13
BYPL 64.15 64.40 64.64
TPDDL 61.46 62.09 62.73
NDMC 54.72 54.92 55.13
(11) The Distribution Licensee is to expected to be Efficient in its Operations and reduce the
towards Revenue side. The savings upto 1% shall be passed towards the Consumers and any
savings in normative O&M expenses above 1% shall be shared between the Distribution
Licensee and Consumers equally.

(1) The tentative Capital Investment plan in terms of Regulation 4(4) of the DERC (Terms and
Conditions for Determination of Tariff) Regulations, 2017 for the Distribution Licensee
shall be as follows:
Table 9: Capitalisation for BRPL for the Control Period (in Rs. Cr.)
Particulars FY 2023-24 FY 2024-25 FY 2025-26 Total
Capitalization 658 681 706 2045
Smart Meter 200 200 200 600
Less: Deposit Work 100 100 100 300
Total 758 781 806 2345
Table 10: Capitalisation for BYPL for the Control Period (in Rs. Cr.)
Smart Meter 150 150 150 450
Total 437 446 455 1338
Table 11: Capitalisation for TPDDL for the Control Period (in Rs. Cr.)
Smart Meter 66 66 66 197
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Total 404 430 446 1280
Table 12: Capitalisation for NDMC for the Control Period (in Rs. Cr.)
(2) The Distribution Licensee shall take approval for Capital Investment Schemes as per
the provisions of Capital Investment Guidelines issued by the Commission from time
to time.
(3) Employee Expenses and A&G Expenses shall be allowed to be capitalized equivalent to
lower of 10% of (total Employee Expenses and A&G Expenses) or actuals in
construction of projects in a particular Financial Year.
(4) The Licensee shall submit the quarterly Capital investment plan along with scheduled
date of Commissioning in the Annual Tariff Petition for the relevant year, which shall form
the basis for computing the Fixed Cost in terms of Regulation 130 (c) of the DERC (Terms
and Conditions for Determination of Tariff) Regulations, 2017.
(5) The Distribution Licensee shall submit an application including details of actual
Capitalisation on quarterly basis for physical verification and true up of capital cost within 1
(one) month of the completion of the relevant quarter.
(6) The quarterly Capital Cost submitted by the Distribution Licensee as per aforesaid sub-
Regulation (3) shall be trued up by the Commission and financial impact on account of
variation in Projected Capital Cost in the Tariff Order vis-a-vis actual capital cost shall be
dealt under the Annual true up of relevant financial year as follows:
(a) Any excess tariff recovered on account of variation in projected capitalization in
the tariff order vis-a-vis trued up capitalization by more than 10% during the year,
shall be adjusted in the Revenue Gap/Surplus of the relevant year along with
interest rate at 1.20 times of applicable Weighted Average Cost of Capital (WACC)
of respective year:
Provided that any excess tariff recovered on account of variation in
projected capitalization in the tariff order vis-a-vis trued up capitalization due
to reasons beyond the control of the Distribution Licensee, subject to prudence
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check, shall be adjusted in the Revenue Gap/Surplus of the relevant year along with
interest rate equal to applicable Weighted Average Cost of Capital (WACC) of
respective year.
(b) Any shortfall in tariff recovered on account of variation in projected capitalization in
the tariff order vis-a-vis trued up capitalization by more than 10% during the year,
shall be adjusted in the Revenue Gap/Surplus of the relevant year along with
interest rate at 0.80 times of applicable Weighted Average Cost of Capital (WACC)
of respective year.
25. TARGET FOR DISTRIBUTION LOSS:

(1) The Distribution Loss target in terms of Regulation 4(9)(a) of the DERC (Terms and Conditions
for Determination of Tariff) Regulations, 2017 for the Distribution licensees shall be as
follows:
Table 13: Target for Distribution Loss for the Control Period
Sr. No. Distribution Licensee FY 2023-24 FY 2024-25 FY 2025-26
1 BSES Rajdhani Power Ltd. 7.30% 7.14% 6.96%
2 BSES Yamuna Power Ltd. 7.72% 7.54% 7.33%
3 Tata Power Delhi Distribution Ltd. 6.91% 6.83% 6.74%
4 New Delhi Municipal Council 7.72% 7.54% 7.33%
(2) The amount for Overachievement/Underachievement on account of Distribution Loss

target shall be computed as per the formula specified in the Regulation 159 of the DERC
(Terms and Conditions for Determination of Tariff) Regulations, 2017 for the Distribution
Licensee.
(3) Any financial impact due to Underachievement on account of Distribution Loss target by the
Distribution Licensee for the relevant year, (i.e. Actual Loss > Loss target), shall be to the
account of Distribution Licensee as specified in Regulation 161 of the DERC (Terms and
Conditions for Determination of Tariff) Regulations, 2017.
(4) Any financial impact due to Overachievement on account of Distribution Loss target by the
Distribution Licensee for the relevant year shall be shared between the Distribution
Licensee and Consumers as follows:
i. in case actual Distribution Loss is between the loss target and loss target minus
[50%*(Previous Year Target-Current Year Target)] for the relevant year shall be
rd rd
shared in the ratio of 2/3 to Consumers and 1/3 to the Distribution Licensee;
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ii. in case actual Distribution Loss is less than loss target minus [50%*(Previous Year
rd
Target-Current Year Target)] for the relevant year shall be shared in the ratio of 1/3
rd
to Consumers and 2/3 to the Distribution Licensee.
Explanation -
Previous Year Distribution Loss Target - PYT

Current Year Distribution Loss Target - CYT
CASE 1: If Actual Loss > CYT, 100% of the distribution loss is to Distribution Licensee.
CASE 2: If CYT > Actual > [CYT-50%*(PYT-CYT)], 1/3rd of the incentive is to Distribution
Licensee and 2/3rd of the incentive is to Consumers.
CASE 3: If Actual < [CYT-50%*(PYT-CYT)], incentive upto [CYT-50%*(PYT-CYT)] is to

be shared as 1/3rd to the Distribution Licensee and 2/3rd to the Consumers.
Remaining incentive is to be shared as 2/3 rd to the Distribution Licensee and 1/3rd
to the Consumers.
26. TARGET FOR COLLECTION EFFICIENCY:

(1) The targets for Collection Efficiency for FY 2023-24 to FY 2025-26 of the Distribution
Licensee shall be 99.80%.
(2) The financial impact on account of Collection Efficiency target shall be computed as per the
formula specified in Regulation 163 of the DERC (Terms and Conditions for Determination
of Tariff) Regulations, 2017 as amended from time to time for the Distribution Licensee.
(3) The financial impact on account of over-achievement in terms of Regulation 164 of the
DERC (Terms and Conditions for Determination of Tariff) Regulations, 2017 as amended
from time to time, for the Distribution Licensee, from the target of 99.80% to 100%
shall be shared equally between Consumers and the Distribution Licensees.
Provided that there shall be no penalty for Collection Efficiency if the same is in range of
99.50% to 99.80%.
27. TARGET FOR RENEWABLE PURCHASE OBLIGATION:
(1) The targets for Renewable Purchase Obligation (RPO) in terms of Regulation 124 of the
DERC (Terms and Conditions for Determination of Tariff) Regulations, 2017 of a Distribution
Licensee from FY 2023-24 to FY 2025-26 shall be computed as a percentage of Total Sale
of Power to its Retail Consumers in its Area of Supply.
Page 18 of 31
(2) The target for RPO shall be met through purchase of Power from various Renewable
Energy Sources or purchase of Renewable Energy Certificates (“REC”) or purchase of
Hydro Energy Certificates (“HEC”) or combination of these and shall be as follows:
Table 14: Targets for Renewable Purchase Obligation
Sr. RPO Targets for
FY 2023-24 FY 2024-25 FY 2025-26
No. Distribution Licensee
1 Wind RPO 1.60% 2.46% 3.36%
2 Other RPO 24.81% 26.37% 28.17%
3 HPO Target 0.66% 1.08% 1.48%
4 Total RPO Target 27.07% 29.91% 33.01%
(3) Wind RPO shall be met by Energy produced from Wind Power Projects (WPPs)
commissioned after 31st March 2022 and the Wind Energy consumed over and above 7%
from WPPs commissioned till 31st March 2022.
(4) HPO shall be met by Energy produced from Hydro Power Projects [including Large Hydro
Projects (LHPs), Pumped Storage Projects & Small Hydro Projects (SHPs)] commissioned
after 8th March 2019.
(5) Other RPO shall be met by Energy produced from any Renewable Energy Power Project not
mentioned in 27 (3) & 27 (4) above and shall include Hydro Power Projects [including Large
Hydro Projects (LHPs), Pumped Storage Projects & Small Hydro Projects (SHPs)]
commissioned before 8th March 2019.
(6) Any shortfall remaining in achievement of 'Other RPO' category in a particular year shall be
met with either the excess energy consumed from WPPs, commissioned after 31st March
2022 beyond 'Wind RPO' for that year or with excess energy consumed from eligible LHPs
[including Large Hydro Projects (LHPs), Pumped Storage Projects & Small Hydro Projects
(SHPs)] , commissioned after 8th March 2019 beyond 'HPO' for that year or partly from both.
Further, any shortfall in achievement of 'Wind RPO' in a particular year shall be met with
excess energy consumed from Hydro Power Plants, which is in excess of `HPO' for that year
and vice versa.
(7) Renewable Energy Certificates shall be considered as per Central Electricity Regulatory
Commission (Terms and Conditions for Renewable Energy Certificates for Renewable Energy
Generation) Regulations, 2022 as amended from time to time, for computation of further
shortfall in RPO, if any, which shall be Trued-up.
(8) Renewable Energy Generation recorded through Renewable Energy meters installed
Page 19 of 31
in the premises of Net Metering Consumers shall be deemed to be part of RPO of the
Distribution Licensee as specified in DERC (Net Metering for Renewable Energy)
Regulations, 2014, for the relevant year:
Provided that in case the Annual Generation from Solar Generation system
recorded through Renewable Energy meters exceeds the Capacity Utilisation Factor (CUF)
of 19%, the Distribution Licensee shall get the Renewable Energy meters tested by
Independent third party, National Accreditation Board for Testing and Calibration
Laboratories (NABL) Accredited Meter Testing Lab.
(9) The cost of Renewable Energy purchased by the Distribution Licensee through Power
Purchase Agreement approved by the Commission and the total power injected into
the Grid through Net Metering arrangement, in excess of RPO target shall be part of Power
Purchase Cost of the Distribution Licensee for the relevant year.
(10) Hydro power imported from outside India shall not be considered for meeting HPO and
the HPO Trajectory shall be trued up on an Annual Basis depending on the Revised
Commissioning schedule of Hydro projects. Further to facilitate compliance of HPO, Hydro
Energy Certificate mechanism, as available, may be utilized by Distribution Licensees.
(11) Non-compliance of RPO targets by Distribution Licensees shall attract penalty at the time
of True-up of relevant Financial Year.
Provided that penalty for quantum of shortfall in RPO shall be 10% of weighted
average REC price discovered at Power Exchange (IEX) for the Trued-up Year.
(12) The amount of penalty imposed on the Distribution Licensee due to non-compliance of
the RPO targets shall be reduced from the ARR during True up of the relevant Financial Year
in terms of the Regulation 124 of the DERC (Terms and Conditions for Determination of
Tariff) Regulations, 2017.
28. CONTINGENCY LIMIT FOR SALE OF POWER THROUGH DEVIATION SETTLEMENT

MECHANISM (UNSCHEDULED INTERCHANGE CHARGES):
(1) The Contingency Limit for disposing - off of Power through Deviation Settlement
Mechanism in terms of the Regulation 152 (c) of the DERC (Terms and Conditions for
Determination of Tariff) Regulations, 2017 from FY 2023-24 to FY 2025-26 of the
Distribution Licensees shall be 5% of Net Power Procured by the Distribution Licensee for
Page 20 of 31
the relevant month.

(2) In case the Distribution Licensee disposes off more than 5% of the Net Power procured by
the Licensee for the relevant month through Deviation Settlement Mechanism (Unscheduled
Interchange Charges) than the rate of realisation through UI shall be considered at the
Average Rate of Power Sale through Indian Energy Exchange (IEX) during same month for
Delhi region.
29. INCENTIVE SHARING MECHANISM FOR SALE RATE OF SURPLUS POWER:

(1) The computation of incentive for Sale Rate of Surplus Power in terms of the
Regulations, 2017 from FY 2023-24 to FY 2025-26 of the Distribution Licensees shall be as
follows:
i. The Variable Cost of the generating station for which power is surplus and required to be
sold through Power Exchanges shall be considered as the previous month’s billed
Variable Cost of such generating station.
ii. The Variable Cost of the generating station for which power is surplus and required to
be sold through Bilateral arrangements shall be considered as the previous month’s
billed Variable Cost of such generating station prevalent at the date of entering into such
contracts.
iii. The incentive shall be the product of rate difference (Actual Sale Rate- Variable
Cost) and Quantum of Power actually sold during the month.
(2) The incentive computed under sub-clause (1) above shall be shared between the
Consumers and the Distribution Licensee in the following prescribed manner: -
i. The incentive realisation upto 100% recovery of Average Fixed Cost per unit of all
Generating sources of relevant year, projected by the Commission in the relevant Tariff
rd
Order, prorated to actual sale of Surplus Power shall be shared in the ratio of 2/3 to
rd
the Consumers and 1/3 to the Distribution Licensee.
ii. The incentive realisation above 100% recovery of Average Fixed Cost per unit of all
Generating sources of relevant year, projected by the Commission in the relevant Tariff
rd
Order, prorated to actual sale of Surplus Power shall be shared in the ratio of 1/3 to
Page 21 of 31
rd
the Consumers and 2/3 to the Distribution Licensee.
Illustration:-
a) Quantum of Sale of Surplus Power (A) = 1000 MU
b) Applicable Variable Cost per Unit (B) = Rs. 2.00/kWh
c) Actual Sale rate of Surplus Power (C) = Rs. 3.50/kWh
d) Incentive [D=A*(C-B)] = Rs. 150 Cr.
e) Approved Average Fixed Cost per unit in the Tariff Order (E)= Rs.1.00/kWh
Incentive realisation upto 100% recovery of Average Fixed Cost per unit = (E*A) = Rs.
100 Cr. shall be shared in the ratio of 2/3rd (Rs. 67 Cr.) to the Consumers and 1/3rd (Rs.
33 Cr.) to the Distribution Licensees.
Incentive realisation above 100% recovery of Average Fixed Cost per unit = [D-(E*A)] =
Rs. 50 Cr. shall be shared in the ratio of 1/3rd (Rs. 16.67 Cr.) to the Consumers and
2/3rd (Rs. 33.33 Cr.) to the Distribution Licensees.
Therefore,
i. Total incentive to the Distribution Licensees = Rs. 66.33 Cr. (33+33.33)
ii. Total incentive to the Consumers = Rs. 83.67 Cr. (67+16.67).
(3) The normative cost of Banking transactions, while Truing-up the Power Purchase Cost, shall
be Weighted Average Rate of Variable Cost of all long term sources for the Financial Year under
True-up.
30. MECHANISM FOR RECOVERY OF POWER PURCHASE COST ADJUSTMENT CHARGES:

The mechanism for recovery of Power Purchase Cost Adjustment Charges (PPAC) in terms of
the Regulation 134 of the DERC (Terms and Conditions for Determination of Tariff)
Regulations, 2017 from FY 2023-24 to FY 2025-26 of the Distribution Licensee shall be as
follows:
(1) The Commission shall specify the detailed formula for computation of PPAC in the Tariff
Order for the relevant year.
(2) The Distribution Licensee shall compute the PPAC for any quarter as per the specified formula
for that relevant year:
Provided that a quarter refers to one-fourth of a year i.e., April, May and June
(Q1); July, August and September (Q2); and October, November and December (Q3); January,
Page 22 of 31
February and March (Q4);
(3) The PPAC computation of any quarter shall be equally spread and adjusted over subsequent
quarter only:
Provided that the Commission may allow to carry forward PPAC to more than one
quarter in order to avoid any tariff shock to consumers in terms of Regulation 136 of
the DERC (Terms and Conditions for Determination of Tariff) Regulations, 2017.
(4) The treatment of PPAC computation as per the specified formula shall be as follows:
a) in case PPAC does not exceed 5% for any quarter, the Distribution Licensee may levy
PPAC at 90% of computed PPAC with prior intimation to the Commission without going
through the regulatory proceedings.
b) in case PPAC exceeds 5% but does not exceed 10% for any quarter, the Distribution
Licensee may levy PPAC of 5% and 75% of balance PPAC (Actual PPAC% - 5%) with prior
intimation to the Commission without going through the regulatory proceedings.
c) in case PPAC exceeds 10% for any quarter, the Distribution Licensee may levy PPAC as
per sub-regulation (a) and (b) as above without going through the regulatory
proceedings and shall file an application for prior approval of the Commission for the
differential PPAC claim (Actual PPAC% – 8.75%).
d) The Distribution Licensee shall file Petition only for their claim of PPAC.
(5) The Distribution Licensee shall upload the computation of PPAC on its website before the
same is levied in the consumers’ electricity bills prospectively.
(6) Revenue billed on account of PPAC by the Distribution Licensee, without going through the
regulatory proceedings, shall be trued up along-with the Power Purchase Cost of the relevant
year and no Carrying Cost shall be allowed due to under-recovery of revenue for the same
year.
(7) Revenue billed on account of PPAC by the Distribution Licensee, without going through the
regulatory proceedings, shall be trued up along-with the Power Purchase Cost of the relevant
year and Carrying Cost shall be at 1.20 times of carrying cost rate on the excess revenue
recovered for the same year.

(1) The incentive due to lower rate of interest on account of re-financing of loan in terms of
Page 23 of 31
2017 from FY 2023-24 to FY 2025-26 of the Distribution Licensee shall be computed as
the product of total quantum of loan availed and difference of weighted average rate of
interest on actual loans versus margin of 1.00% plus (+) SBI MCLR.
(2) The incentive on account of re-financing of loan computed as per sub clause (1) above shall
be shared equally between the Consumers and the Distribution Licensee.
32. RATIO OF ALLOCATION OF ARR INTO WHEELING & RETAIL SUPPLY:

The ratio of allocation of ARR into Wheeling & Retail Supply Business in terms of the
Regulation 4(9)(e) of the DERC (Terms and Conditions for Determination of Tariff)
Regulations, 2017 shall be as follows:
Table 15: Retail Business
Particulars BRPL TPDDL BYPL NDMC
Cost of Power Purchase 100% 100% 100% 100%
Inter-State Transmission charges 100% 100% 100% 100%
Intra-state Transmission charges 100% 100% 100% 100%
SLDC fees and charges 100% 100% 100% 100%
Operation & Maintenance Costs 40% 38% 38% 38%
Depreciation (including AAD) 21% 23% 19% 23%
Return on Capital Employed 26% 28% 28% 28%
Income Tax 26% 28% 28% 28%
Non-Tariff Income 85% 60% 85% 60%
Table 16: Wheeling Business

Particulars BRPL TPDDL BYPL NDMC
Operation & Maintenance Costs 60% 62% 62% 62%
Depreciation (including AAD) 79% 77% 81% 77%
Return on Capital Employed 74% 72% 72% 72%
Income Tax 74% 72% 72% 72%
Non-Tariff Income 15% 40% 15% 40%
33. TREATMENT OF REVENUE GAP/SURPLUS:

(1) Various components of ARR of the Distribution Licensee shall be trued up in terms of the
Regulations, 2017.
(2) The Revenue Gap/Surplus computed for the trued up year shall be adjusted against the
Page 24 of 31
closing balance of accumulated Revenue Gap for the relevant year:
Provided that if there is no accumulated Revenue Gap or any Surplus left after
adjusting against closing balance of accumulated Revenue Gap for the relevant year, same
shall be adjusted in the ARR.
34. TIME SLOTS FOR TIME OF DAY (TOD) TARIFF:

The Commission may, in terms of the Regulation 133 & 153 of the DERC (Terms and
Conditions for Determination of Tariff) Regulations, 2017 specify Time Slots for Time of Day
(ToD) Tariff through separate Order.
Page 25 of 31
PART 5
MISCELLANEOUS
35. ISSUE OF REGULATIONS, ORDERS AND PRACTICE DIRECTIONS: Subject to the provision of
the Act and these Regulations, the Commission may, from time to time, issue Orders and
Practice directions with regard to the implementation of these Regulations and procedure
to be followed on various matters, which the Commission has been empowered by these
Regulations to direct in matters incidental or ancillary thereto.
36. POWERS TO REMOVE DIFFICULTIES: If any difficulty arises in giving effect to any of the
provisions of these Regulations, the Commission may, by a general or special order, not being
inconsistent with the provisions of these Regulations or the Act, do or undertake to do things
or direct the Licensee to do or undertake such things which appear to be necessary or
expedient for the purpose of removing the difficulties.
37. POWER OF RELAXATION: The Commission may in public interest and for reasons to be
recorded in writing, relax any of the provision of these Regulations.
38. INTERPRETATION: If a question arises relating to the interpretation of any provision of these
Regulations, the decision of the Commission shall be final.
39. SAVING OF INHERENT POWERS OF THE COMMISSION: Nothing contained in these
Regulations shall limit or otherwise affect the inherent powers of the Commission from
adopting a procedure, which is at variance with any of the provisions of these Regulations, if
the Commission, in view of the special circumstances of the matter or class of matters and
for reasons to be recorded in writing, deems it necessary or expedient to depart from the
procedure specified in these Regulations.
40. ENQUIRY AND INVESTIGATION: All enquiries, investigations and adjudications under these
Regulations shall be done by the Commission through the proceedings in accordance with
the provisions of the Delhi Electricity Regulatory Commission Comprehensive (Conduct of
Business) Regulations, 2001 as amended from time to time.
41. POWER TO AMEND: The Commission, for reasons to be recorded in writing, may at any time
vary, alter or modify any of the provision/(s) of these Regulations by amendment after
receiving the representation.
Sd/-
Rajesh Dangi
Date: 29/03/2023 Secretary, DERC
Page 26 of 31
Appendix-I
Procedure for Calculation of Transmission System
Availability Factor for a Month
1. Transmission system availability factor for a calendar month (TAFM) shall be calculated by
the respective transmission licensee, got verified by the concerned SLDC separately for
each AC and HVDC transmission system and grouped according to sharing of transmission
charges. Transmission System Availability shall be calculated separately for each
Transmission System. For the purpose of calculation of TAFM:
a. AC transmission lines: Each circuit of AC transmission line shall be considered as one
element.
b. Inter-Connecting Transformers (ICTs): Each ICT bank (three single phase transformer
together) shall form one element.
c. Static VAR Compensator (SVC): SVC along with SVC transformer shall form one
element. However, 50% credit to inductive and 50% to capacitive rating shall be given.
d. Bus Reactors/Switchable line reactors: Each Bus Reactors/Switchable line reactors
shall be considered as one element.
e. HVDC Bi-pole links: Each pole of HVDC link along with associated equipment at both
ends shall be considered as one element.
f. HVDC back-to-back station: Each block of HVDC back-to-back station shall be
considered as one element. If associated AC line is not available, the HVDC back-
to- back station block shall also be considered as unavailable.
g. In case of outage of a transmission element affecting evacuation of power from a
generating station, outage hours shall be multiplied by a factor of 2.
2. The Availability of AC and HVDC portion of Transmission system shall be calculated as under:
% TAFM for AC system = n * AVn + p * Avp + q * Avq + r * Avr x 100
n+p+q+r
Page 27 of 31
Where,
n = Total number of AC lines.
AVn = Availability of n number of AC lines.
p = Total number of bus reactors/switchable line reactors
AVp = Availability of p number of bus reactors/switchable line reactors q = Total
number of ICTs.
AVq = Availability of q number of ICTs. r = Total number of SVCs.
AVr = Availability of r number of SVCs.
3. The weightage factor for each category of transmission elements shall be as under:
(a) For each circuit of AC line – Surge Impedance Loading for Uncompensated
line (SIL) multiplied by ckt-km.
SIL rating for various voltage level and conductor configuration is given in
Appendix-II. However, for the voltage levels and/or conductor configurations
not listed in Annexure -I, appropriate SIL based on technical considerations
may be used for availability calculation under intimation to long-term
transmission customers/DICs.
For compensated AC line, Surge Impedance Loading (SIL) shall be as certified
by the SLDC considering the compensation on the line.
For shunt compensated line the reduced value of SIL shall be taken in
accordance with the location of the reactor. Similarly in case of the lines with
series compensation the higher SIL shall be taken as per the percentage of
compensation.
(b) For each HVDC pole- The rated MW capacity * ckt-km
(c) For each ICT bank – The rated MVA capacity
(d) For SVC- The rated MVAR capacity (inductive and capacitive)
(e) For Bus Reactor/switchable line reactors – The rated MVAR capacity.
(f) For HVDC back-to-back station connecting two grids- Rated MW capacity of
each block.
Page 28 of 31
4. The availability for each category of transmission elements shall be calculated based on the
weightage factor, total hours under consideration and non-available hours for each
element of that category. The formulae for calculation of Availability of each category of
the transmission elements are as per Appendix-III.
5. The transmission elements under outage due to following reasons shall be deemed to be
available:
i. Shut down availed for maintenance of another transmission scheme or
construction of new element or renovation/upgradation/additional capitalization
in existing system approved by the Commission. If the other transmission
scheme belongs to the transmission licensee SLDC may restrict the deemed
availability period to that considered reasonable by it for the work involved.
ii. Switching off of a transmission line to restrict over voltage and manual tripping
of switched reactors as per the directions of SLDC.
6. Outage time of transmission elements for the following contingencies shall be excluded from
the total time of the element under period of consideration:
i. Outage of transmission elements due to force majeure events. The onus of
satisfying the SLDC that outage of transmission element was due to force
majeure events shall rest with the Transmission Licensee.
ii. Outage caused by grid incident/disturbance not attributable to the transmission
licensee, e.g. faults in substation or bays owned by other agency causing outage
of the transmission licensee’s elements, and tripping of lines, ICTs, HVDC, etc.
due to grid disturbance. However, if the element is not restored on receipt of
direction from SLDC while normalizing the system following grid
incident/disturbance within reasonable time, the element will be considered
not available for the period of outage after issuance of SLDC’s direction for
restoration.
Page 29 of 31
Appendix-II
SURGE IMPEDANCE LOADING (SIL) OF AC LINES
Sr. No. Line Voltage (kV) Conductor Configuration SIL (MW)
1. 765 Quad Bersimis 2250
2. 400 Quad Bersimis 691
3. 400 Twin Moose 515
4. 400 Twin AAAC 425
5. 400 Quad Zebra 647
6. 400 Quad AAAC 646
7. 400 Triple Snowbird 605
8. 400 ACKC(500/26) 556
9. 400 Twin ACAR 557
10. 220 Twin Zebra 175
11. 220 Single Zebra 132
12. 132 Single Panther 50

10
13. 66 Single Dog
Page 30 of 31
Page 31 of 31

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DELHI ELECTRICITY REGULATORY COMMISSION

BUSINESS PLAN REGULATIONS, 2023

DELHI ELECTRICITY REGULATORY COMMISSION

DELHI ELECTRICITY REGULATORY COMMISSION

1. SHORT TITLE, COMMENCEMENT AND EXTENT

3. RATE OF RETURN ON EQUITY:

4. TAX ON RETURN ON EQUITY:

5. MARGIN FOR RATE OF INTEREST ON LOAN:

7. CAPITAL INVESTMENT PLAN:

Table 2: Capital Investment plan (Rs. Crore)

Provided that any improvement in operational parameters resulting from

8. NORMS OF OPERATION FOR GENERATING STATIONS:

10. INCENTIVE SHARING MECHANISM WITH RESPECT TO OPERATIONAL PARAMETERS:

Net Gain = (Normative ECR– Actual ECR) x Actual Generation

11. INCENTIVE SHARING MECHANISM FOR RE-FINANCING OF LOAN:

13. TAX ON RETURN ON EQUITY:

and Third year of the Control Period, respectively:

15. OPERATION AND MAINTENANCE EXPENSES:

Table 6: Operation and Maintenance Expenses (Rs. Crore)

16. CAPITAL INVESTMENT PLAN:

Table 7: Capital Investment Plan (Rs. Crore)

17. NORMS OF OPERATION FOR TRANSMISSION BUSINESS:

a) For TAFM ≤ 98.50% AFC x (NDM/NDY) x (TAFM/98.50%)

c) For 99.00% < TAFM ≤ 99.75% AFC x (NDM/NDY) x (TAFM/98.50%)

d) For TAFM > 99.75 % AFC x (NDM/NDY) x (99.75%/98.50%)

AFC = Annual Fixed Cost specified for the year in Rupees

19. INCENTIVE SHARING MECHANISM FOR RE-FINANCING OF LOAN:

21. TAX ON RETURN ON EQUITY:

22. MARGIN FOR RATE OF INTEREST ON LOAN:

23. OPERATION AND MAINTENANCE EXPENSES:

24. CAPITAL INVESTMENT PLAN:

Particulars FY 2023-24 FY 2024-25 FY 2025-26 Total

25. TARGET FOR DISTRIBUTION LOSS:

(2) The amount for Overachievement/Underachievement on account of Distribution Loss

Previous Year Distribution Loss Target - PYT

CASE 3: If Actual < [CYT-50%*(PYT-CYT)], incentive upto [CYT-50%*(PYT-CYT)] is to

26. TARGET FOR COLLECTION EFFICIENCY:

28. CONTINGENCY LIMIT FOR SALE OF POWER THROUGH DEVIATION SETTLEMENT

the relevant month.

29. INCENTIVE SHARING MECHANISM FOR SALE RATE OF SURPLUS POWER:

30. MECHANISM FOR RECOVERY OF POWER PURCHASE COST ADJUSTMENT CHARGES:

February and March (Q4);

31. INCENTIVE SHARING MECHANISM FOR RE-FINANCING OF LOAN:

32. RATIO OF ALLOCATION OF ARR INTO WHEELING & RETAIL SUPPLY:

Table 16: Wheeling Business

33. TREATMENT OF REVENUE GAP/SURPLUS:

closing balance of accumulated Revenue Gap for the relevant year:

34. TIME SLOTS FOR TIME OF DAY (TOD) TARIFF:

Availability Factor for a Month

Sr. No. Line Voltage (kV) Conductor Configuration SIL (MW)

1. 765 Quad Bersimis 2250

2. 400 Quad Bersimis 691

3. 400 Twin Moose 515

4. 400 Twin AAAC 425

5. 400 Quad Zebra 647

6. 400 Quad AAAC 646

7. 400 Triple Snowbird 605

8. 400 ACKC(500/26) 556

9. 400 Twin ACAR 557

10. 220 Twin Zebra 175

CASE 3: If Actual < [CYT-50%(PYT-CYT)], incentive upto [CYT-50%(PYT-CYT)] is to