Professional Documents
Culture Documents
08-09
Case 16 of 2008 March 2010
Contents
1. Main components of ARR 2. Review of MERC order 3. Issues yet to be resolved 4. Way ahead
Components of Tariff: Fixed charge Variable charge Adjustment of profit / loss on account of controllable / uncontrollable factors
Depreciation including Advance against depreciation Interest on long term loan Capital Interest on working capital Return on equity Other expenses
Income tax
K'kheda
Actual Cost of Coal consumed (Rs. Lakh) Actual Cost of Oil Consumed (Rs. Lakh) Actual Transit Loss (Rs. Lakh) Actual Generation Cost (Rs lakhs) Less: Transit Loss after Adjustment Add: Normative Transit Loss (Rs.Lakhs) Less: Actual Sec Oil Cost LDO (Rs.Lakhs) Less: Actual Sec.Oil- FO (Rs.Lakhs) Less: Actual Sec.Oil- LSHS (Rs.Lakhs) Add: Normative Sec Oil Cost (Rs.Lakhs) Actual Adjusted Gen Cost (Rs.Lakhs) e f g h=e+f+g i j k l m n o=h - i + j - (k + l + m) + n
Normative Variable cost after u = q X t /( (1 - b) X adjustment for Heat rate & Auxiliary 10^6) Consumption Normative Fuel cost (Rs. Lakh) v = c X u X 10
5516.77
5657.09
11
w = c X (u - r ) X 10 (1,670.8005) (1,530.4793)
Availability = 10000 x
i=1
where - N = number of time blocks in the given period DC = Average Declared Capacity for the ith time block in such period IC = Installed Capacity of the generating station in MW AUX = Normative Auxiliary Consumption in MW, as a percentage of gross generation 12
x100%
13
PLF = 10000 x
i=1
where - N = number of time blocks in the given period SG = Average Scheduled Generation for the ith time block in such period IC = Installed Capacity of the generating station in MW
14 AUX = Normative Auxiliary Consumption in MW, as a percentage of gross generation
15
80%.
Incentive shall be payable at a flat rate of 25.0 paise/kWh if PLF is more than 80%
16
17
APTELs judgement 10th April 2008 CPRI tests (20 Nov 2008 to 10 Dec 2009) CPRI recommendations Immediate, medium term, long term measures for improvement
APR order (Case 115 of 2008) 17th Aug 2009 Appeal in APTEL (appeal 191 of 2009) Order by MERC on true up dt.5th March 2010
18
19
09-10
CPRI Petition Recommend FAC*
Out come of MERC Order Degradation factor for SHR approved by MERC
For units below 210 MW a degradation rate of 0.4 %/year For 210 MW On implementation of the immediate and medium term measures the degradation rate to 0.3%/year during the immediate and medium term implementation phases and to 0.2 %/year during the long term implementation phases. For 500 MW degradation rate for the three units during the immediate and medium term phases will be 0.34 %/year and 0.2 %/year during long term implementation phases.
21
Aux .consumption
08-09
Approved CPRI Recommend Actual Approved
09-10
CPRI Recommend Actual FAC*
9.18%
9.17%
9.75%
10%
12.18% 12.18% 10.47% 10.74% 9.74% 9.74% 10.93% 10.93% 10.97% 10.74% 8.04% 8.18%
14.10% 15.01% 10.99% 10.80% 10.91% 9.99% 11.71% 11.17% 12.14% 12.69% 8.52% 8.45%
22
09-10
CPRI Petition Recommen d FAC*
2 2 2 3 2 2.81 2
2 2 2 2 2 2 2
1.47 1.135 7.03 9.117 3.71 4.266 5.23 4.43 3.55 3.832 9.94 12.653 1.95 1.5
23
MSPGCL MSEDCL
1 0.67 0.33 2006-07 817.58 817.58 854.45 829.87 (36.87) (24.58) (12.29) 829.87 2007-08 5.38% 861.55 861.55 967.65 900.42 (67.23) (44.82) (22.41) 922.83 2008-09 5.29% 907.89 907.89 1137.35 948.05 40.16
24
Way forward
How to achieve performance parameters now approved by MERC? How to monitor them at plant level and at HO level? What will be incentives & disincentives for achieving & non-achieving the approved parameters? What are the action plans for it? Daily Management Information System (MIS) on achievements & failures? Formation of Responsibility matrix. Daily Gain or Loss Corrective actions for the same Review of implementation of immediate measures as per CPRI
25
PERFORM OR PERISH
-Visveshwariah
26
Thank you
27
TARIFF
28
Tariff = Annual Capacity Charges + Energy Charge 28 = Annual Fixed Charge - Energy Charge + Energy Charge = Annual Fixed Charge
29
1 April
st
1 April
st
1st April
31st March
1 year
(Actual)
6 months
(Estimated)
1 year
(Projections)
Previous year
Current year
Next year
30
Technical validation Last date for submission of ARR/APR Reply to data gaps
3days
120 days 30th Nov This period is to be reduced so that tariff order shall be issued in time by MERC
1. 2. 3. 4. 5. 6. 7. 8. Prayas, Pune Thane Belapur Industries Association, Thane Mumbai Grahak Panchayat, mumbai Vidarbha Industries Association Nagpur PoonaratnamVel Induction Hardenings (VIL) Rakshpal Abrol(Bharatiya Udhami Avam Upbhokta Sangh (BUAUS) ) Dr. Barhate Sandip Ohri 31
Average of the actual O&M expenses for the five (5) years ending March 31, 2004 shall be considered as O&M expenses for FY 2002 and escalated at 4 % to arrive at O&M expenses for the base year commencing April 1, 2005 & further escalated at the rate of 4 % per annum
34.6.2
200/210/250 MW sets : Rs. 10.82 lakh/MW 500 MW and above sets : Rs. 9.73 lakh/MW Weighted average value for stations having combination of 200/210/250 MW sets and 500 MW & above set
Return on equity: 14% (Normative) Debt : Equity Ratio = 70:30 Interest on long term loan Capital : at approved interest rate
32
Depreciation
Straight line method 90% depreciation till end of life of asset Advance against depreciation = (actual amount payable allowable depreciation ) limited to 1/10 of Principal amount of loan allowable depreciation
34
DEPRECIATION
Annual depreciation
35
Consumer
1/3
1/3
36
37