SAFIR Core Course Infrastructure Regulation & Reforms. Tariff Regulation: ARR and Tariff Analysis – Distribution, Generation and Transmission. Administrative Staff College of India Hyderabad, INDIA. Session Overview. Legal Aspects Policy Aspects Regulatory Aspects
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Tariff Regulation: ARR and Tariff Analysis –
Distribution, Generation and Transmission
Administrative Staff College of India
Power Procurement (Self+Purchase)
Annual Revenue Requirement to meet the Cost of Supply to cater to the demand
O & M Expenses
The petition would also include performance review of the previous year and truing up of the prior year for which audited results are available
Filing of ARR under MYT
(Rs. in lakhs)
Surplus / Gap
The gap is either bridged by increasing tariff or utility asked to meet by efficiency gains – reduction of Distribution loss, reduction of other costs etc.
Some State Electricity Regulatory Commissions are adopting ROCE instead of ROE.
Whereas ROE provides return on equity, ROCE provides return on capital employed. ROCE is arrived at as under
(Rs. in lakh)
Total fuel cost of a coal station (contd.)
1. Operation and Maintenance expenses.