The Madhya Pradesh Electricity Regulatory Commission (MPERC) has issued draft regulations for determining transmission tariffs, titled “Madhya Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Transmission Tariff) (Revision – V), Regulations, 2024.” These regulations are effective from April 1, 2024, and will remain in force for five years unless reviewed or extended by the Commission.
The Madhya Pradesh Electricity Regulatory Commission (MPERC), in this regard has issued a public notice on May 28, 2024, regarding the proposed revision of the “MPERC (Terms and Conditions for determination of Transmission Tariff) (Revision – V), Regulations, 2024.”
Interested parties are invited to submit suggestions, comments, or objections to the Secretary of MPERC within 21 days of the notice’s publication. These may be sent to the Commission’s office at the address “5th Floor, “Metro Plaza”, E-5 Arera Colony, Bittan Market, Bhopal.” A copy of the proposed amendment can be obtained on any working day between 11:00 AM and 5:00 PM by paying Rs. 200 in cash or by demand draft, or by post for an additional Rs. 50 for postage.
MPERC will hold a virtual public hearing on June 18, 2024, at 11:00 AM to discuss the proposed Regulations. Those who have submitted written suggestions, comments, or objections, and wish to participate in the public hearing, are required to provide their mobile number and email ID as per the guidelines on the Commission’s website.
The regulations apply to intra-state transmission tariffs charged by transmission licensees to distribution licensees and open access customers. Tariffs for new intra-state transmission projects costing above Rs. 325 crore will be determined through a transparent bidding process and adopted by the Commission after a prudence check.
The regulations define the scope of application, specify the norms of operation as ceiling norms, and provide definitions for various terms used throughout the document. They also outline the procedure for tariff determination, including the principles for tariff determination, application for tariff determination, and methodology for tariff determination and true-up.
Key components of the tariff include capital cost, debt-equity ratio, annual fixed cost, return on equity, interest and finance charges on loan capital, depreciation, lease/hire purchase charges, operation and maintenance expenses, and interest on working capital. The regulations also address the treatment of foreign exchange rate variation, tax on income, tariff income, and non-tariff income.
The regulations include provisions for charging tariffs other than approved, annual review of transmission licensees, and miscellaneous provisions such as the clean development mechanism, deviation from ceiling tariff, and the power to remove difficulties.
