TSERC refuses to entertain Discoms’ ARR petitions

Hyderabad: Telangana State Electricity Regulatory Commission (TSERC) has declined to entertain Aggregate Revenue Requirement (ARR) petitions from the two distribution companies since the time period given to them had already lapsed. In its order delivered on Thursday, the TSERC said the two distribution companies – the Northern Power Distribution Company of Telangana Limited (TSNPDCL) and […]

Hyderabad: Telangana State Electricity Regulatory Commission (TSERC) has declined to entertain Aggregate Revenue Requirement (ARR) petitions from the two distribution companies since the time period given to them had already lapsed.

In its order delivered on Thursday, the TSERC said the two distribution companies – the Northern Power Distribution Company of Telangana Limited (TSNPDCL) and Sothern Power Distribution Company of Telangana Limited (TSSPDCL), who are licensees in Telangana, had filed petitions for determination of ARR for the financial years (FYs) 2019-20, 2020-21 and 2021-22.

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In their petitions, the TSNPDCL and TSSPDCL requested TSERC to condone the delay in filing the ARR petition for FYs 2019-20, 2020-21 and 2021-22 and to grant the opportunity to them to submit the tariff proposals at a later date.

The two companies also requested grant of suitable opportunity to TSNPDCL and TSSPDCL within a reasonable time frame to file additional material information that may be subsequently available and to consider and approve ARR petitions including all requested regulatory treatments in the filing.

On May 5, 2021, the Commission had addressed a letter to the two companies for Filing for Proposed Tariff (FPT) for FY 2021-22. It received the proposed ARR for FY2021-22 from the two distribution companies. However, the companies have not filed along with it the FPT.

The Commission observed that ARR will be taken only after FPT from which date the period of 120 days will be reckoned. It noticed that since there was no filing with regard to the proposed tariff is made by the licensees, the present filings in so far as ARR for FYs 2019-20, 2020-21 and 2021-22 have been scheduled for hearing at admission stage by posting the same to December 20, 2021.

The Commission heard the submissions of the representatives of the licensees. It perused the relevant regulation applicable in these cases. Explaining terms and conditions for determination of tariff for wheeling and retail sale of electricity’ as adopted by Commission in regulation number one-2014, the following provisions are relevant:

The ARR determined for Retail Supply Business (RSB) will be the basis for the fixation of the tariff/charges for retail sale of electricity including surcharges.

Every distribution licensee shall file for each of its licensed business an application for approval of its ARR for each year of the control period, not less than 120 days before the commencement of the first year of the control period.

This filing shall be in such form and in such manner as specified in accordance with the guidelines issued by the Commission. The FPT for distribution business and RSB shall be filed along with the respective ARR filings.

Since the licensees have not filed the proposals in stipulated period in less than 120 days in filing them for consideration, the Commission was unable to proceed with the filings in the present form on account of noncompliance of regulation.

In these circumstances, the Commission deemed it appropriate to decline from entertaining ARR petitions mainly for the reason that the time period for which they were sought was already lapsed. Hence, they are refused.

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