componenets of transmission tariff sample calculation of tariff l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
COMPONENETS OF TRANSMISSION TARIFF & SAMPLE CALCULATION OF TARIFF PowerPoint Presentation
Download Presentation
COMPONENETS OF TRANSMISSION TARIFF & SAMPLE CALCULATION OF TARIFF

Loading in 2 Seconds...

play fullscreen
1 / 15

COMPONENETS OF TRANSMISSION TARIFF & SAMPLE CALCULATION OF TARIFF - PowerPoint PPT Presentation


  • 258 Views
  • Uploaded on

COMPONENETS OF TRANSMISSION TARIFF & SAMPLE CALCULATION OF TARIFF. MAY 15 TH , 2009. PRESENTED BY SH. S.S.RAJU Ch Manager (COMMERCIAL). TARIFF COMPONENTS ( As per 2009-14 period) RETURN ON EQUITY (ROE) DEPRECIATION (DEP) INTEREST ON LOAN (IOL) OPERATION & MAINTENANCE (O&M)

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'COMPONENETS OF TRANSMISSION TARIFF & SAMPLE CALCULATION OF TARIFF' - sandra_john


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
componenets of transmission tariff sample calculation of tariff

COMPONENETS OF TRANSMISSION TARIFF &SAMPLE CALCULATION OF TARIFF

MAY 15TH , 2009

PRESENTED BY SH. S.S.RAJU

Ch Manager (COMMERCIAL)

slide2

TARIFF COMPONENTS ( As per 2009-14 period)

  • RETURN ON EQUITY (ROE)
  • DEPRECIATION (DEP)
  • INTEREST ON LOAN (IOL)
  • OPERATION & MAINTENANCE (O&M)
  • INTEREST ON WORKING CAPITAL (IOWC)
      • 1 MONTH O&M
      • 2 MONTHS RECEIVABLE
      • Maintenance spares @ 15% of O&M Exp
slide10

CALCULATION OF TARIFF :

    • Capital Cost of the Project : Rs 100 Crs
    • Loan : Rs 70 Crs
    • Equity : Rs 30 Crs
    • Rate of Interest (IOL) : 9.5% PA
    • Repayment of loan : 12 yrs
    • IOWC : 12.25%
    • DOCO : 1St April’2001
    • O&M ( Line & Bay details) : Bay – 2 no 400 kV Bays Line – 400 kV D/C 135 Kms

( Twin conductor)

    • Actual availability : 99.5%
slide13

Computation and payment of transmission charges

  • The transmission charges (inclusive of incentive ) payable for a calendar month for a transmission system or part thereof shall be
  • = AFC x( NDM/NDY) x (TAFM/NATAF)
  • Where,
  • AFC = annual fixed cost specified for the year, in Rs
  • NATAF = Normative annual transmission availability factor, in per cent
  • NDM = number of days in the month
  • NDY = number of days in the year
  • TAFM = transmission system availability factor for the month, in per cent, computed in accordance with appendix IV -;
  • (3) The transmission charges hall be calculated separately for part of the transmission system having different NATAF, and aggregated thereafter, according to their sharing by their beneficiaries.
slide14

Incentive

  • = Equity x (Annual availability achieved- Target Availability)
  • Target Availability
    • Where Normative Availability for
  • AC system = 98%
  • HVDC system= 95%
    • In case of Annual Availability is below Normative Availability the prorata tariff shall be charged.
slide15

Cost of equity calculated using CAPM

ke= Rf + b (Rm – Rf)

  • Risk Free rate (Rf): 7.58%
    • 10 year Government bond yield as on date
  • Market Premium : 16.9%-17.67 %
    • Scenario 1: CAGR between Jan 1991 and average of daily closing of last one year (1st Oct 07 to 30th Sep 08)
    • Scenario 2: CAGR between Jan 1991 and average of daily closing of last six months (1st April 08 to 30th Sep 08)
  • Industry levered beta – 1.09
  • RoE –
    • Scenario 1 – [7.58% + 1.09 * (10.09%)] = 18.58%
    • Scenario 2 – [7.58% + 1.09 * (9.32%)] = 17.74%

ke = Cost of equity

Rf = Risk free rate of return

b = equity beta

Rm = Return on the market

Levered Beta : Unlevered Beta*[1+ (Industry average DE ratio)* (1-Average effective tax rate)]

: 0.80*[1+ (0.46)*(1-20%)] = 1.09