ORDER
1. The petitioner seeks approval for incentive for the year 2003-04 based on availability for the transmission system in the Western Region, in terms of the Central Electricity Regulatory Commission (Terms & Conditions of Tariff) Regulations, 2001 (the regulations).
2. It has been provided in the regulations that in addition to transmission charges, for availability of the transmission system beyond 98% as certified by Member Secretary, REB, the petitioner shall be entitled to incentive at rates specified hereunder:
Availability % Incentive Cumulative incentive as a as a percent of equity percent of equity 98% and below 0.00 0.00 98.01% to 98.50% 1.00 1.00 98.51% to 99.00% 1.00 2.00 99.01 to 99.50% 1.00 3.00 99.51% to 99.75% 1.00 4.00
3. As per the affidavit dated 1.8.2006, the petitioner has claimed incentive from the respondents, as under (Rs. in lakh)
Assets year Equity Availability Incentive
(Rs. in lakh) (Rs. in lakh)
(i) Western Region 2003-04 45309.14 99.53% 1812.37
transmission assets
(ii) Inter-regional assets 9257.49 99.53% 370.30
(excluding 220 kV Korba-
Budhipadar transmission line) (iii) 220 kV Korba-Budhipadar 442.86 99.89% 17.71 transmission line
4. Member-Secretary , WREB in his letter dated 7.4.2004 has certified the
availability of the transmission system in the region and the inter-regional assets during 2003-04 for the transmission system, excluding 220 kV Korba-Budhipadar transmission line at 99.53% by giving weightage of 50% to the availability of inter-regional assets in accordance with the regulations. In respect of the 220 kV Korba-Budhipadar transmission line, availability has been certified at 99.89%. While calculating equity, only 50% of equity for inter-regional assets needs to be added to arrive at total equity for Western Region System. However, this is not applicable to Korba-Budhipadar line as
the methodology for sharing of charges for this line is different from other inter-regional 3rd assets. While calculating equity for Korba-Budhipadar transmission line, 2/of the equity of the line has been taken for WR System. Therefore, availability as well as equity of this line has been calculated separately.
5. The incentive has been worked out accordingly, considering the availability as certified by the Member-Secretary, WREB. Based on the above, the petitioner shall be entitled to incentive as under:
Assets year Qualifying % Incentive Amount
availability Equity (Rs. in lakh)
(Rs. in lakh)
(i) Western Region 2003-04
transmission assets 99.53% 45309.14 1812.37
(ii) Inter-regional assets 99.53% 9257.49 370.30
(excluding 220 kV Korba-
Budhipadar transmission line)
(iii) 220 kV Korba-Budhipadar 99.89% 442.86 17.71
transmission line
6. The details of calculations in support of the incentive allowed by us are given in the Annexure annexed.
7. The Commission in its order dated 9.7.2004, had provisionally allowed incentive of 80% of that claimed by the petitioner in this petition. The provisional incentive charged by the petitioner shall be adjusted against final incentive for the year 2003-04 approved by us in this order.
8. Sharing of incentive:
(i) The incentive in respect of Western Region transmission system and the inter-regional, except Korba-Budhipadar transmission line, assets shall be shared by the respondents, the beneficiaries in the Western Region, in proportion of the transmission charges shared by them.
(ii) The incentive in respect of Korba-Budhipadar transmission line shall be shared by MPSEB, CSEB and GEB, in proportion of the transmission charges
shared by them for this line.
9. This order disposes of Petition No. 48/2004.