Rajasthan Electricity Regulatory Commission
Petition No. RERC-486/14 & 487/14
In the matter of petitions filed by M/s Raj WestPower Ltd., for determination of
tariff for FY 2015-16 for unit 1 to 8 on Lignite from Kapurdi mine and M/s Barmer
Lignite Mining Company Ltd., for assessment of provisional transfer price of
Lignite from Kapurdi mine for FY 2015-16.
Coram:
Sh. Vishvanath Hiremath, Chairman
Sh. Vinod Pandya,
Member
Sh. Raghuvendra Singh, Member
Petitioners
:
1. M/s Raj West Power Ltd. (486/14)
2. M/s Barmer Lignite Mining Company Ltd. (487/14)
Respondents
:
1. M/s Jaipur Vidyut Vitran Nigam, Jaipur
2. M/s Ajmer Vidyut Vitran Nigam, Ajmer
3. M/s Jodhpur Vidyut Vitran Nigam, Jodhpur
Date of hearing
:
Presents
:
Order Date
17.03.2015, 31.03.2015
1.
2.
3.
4.
Sh. Vayankatesh Garg, Advocate, RWPL
Sh. Umesh Gupta, MD, BLMCL
Sh. P. N. Bhandari, Advocate, Discoms
Sh. S.T. Hussain, Ex.En, JVVNL
:
31.03.2015
ORDER
1.
Petitioner M/s Raj WestPower Ltd. (RWPL), a generating company has filed
a petition before the Commission on 26.11.2014 for determination of tariff
for FY 2015-16 for unit 1 to 8 on Lignite from Kapurdi mine.
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2.
M/s Barmer Lignite Mining Company Ltd. (BLMCL), a mining entity has also
filed a petition before the Commission on 26.11.2014 for assessment of
provisional transfer price of lignite from Kapurdi mine blocks for FY 15-16 for
supply of Lignite to power plant of RWPL.
3.
Petitioner RWPL has prayed for the following tariff for all the eight units for
FY 2015-16 :
S.No.
Item
1
Fixed cost
2
Variable cost
3
Total
4.
Rate
Rs. 2.34/unit
Rs. 2.22/unit
Rs. 4.56/unit
RWPL has also prayed for awarding a reasonable interim tariff for the
Generating Station in view of the fact that the applicability of the current
interim tariff is expiring on 31.03.2015 to enable the petitioner to continue
to supply electricity to the respondents subject to adjustment against the
final tariff of Generating Station to be determined by this Commission.
5.
Petitioner BLMCL has prayed for the following transfer price in its petition:
S.No.
Item
1
Extraction cost of Lignite before royalty,
taxes and duties
2
Royalty, taxes and duties
3
Net Transfer Price of Lignite including
royalty, taxes and duties
4
Net Transfer Price of Lignite based on
escalated extraction cost of lignite
including royalty, taxes and duties
6.
Rate
Rs. 1418.82/MT
Rs. 269.97/MT
Rs. 1688.79/MT
Rs. 1877.61/MT
BLMCL has also prayed for award of a sustainable interim transfer price in
view of the fact that the applicability of the current transfer price of lignite
available with the BLMCL is expiring on 31.03.2015 to enable the petitioner
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to continue to supply lignite to RWPL Generating Station, subject to
adjustment on determination of final transfer price for FY 2015-16.
7.
Subsequently, BLMCL filed an Interlocutory Application on 11.03.2015
seeking amendment in the petition in respect to revision made in the
structure of statutory levies in the Union/State budget for FY 2015-16.
BLMCL has revised transfer price of lignite as 2008.10/MT from Rs.
1877.61/MT.
8.
RWPL has also filed an Interlocutory Application on 11.03.2015 submitting
that due to certain changes made in the structure of the statutory levies in
the Union/State budget for FY 2015-16, transfer price proposed by BLMCL
has been changed from Rs. 1877.61/MT to 2008.10/MT. This directly
impacts the variable cost claimed by RWPL in its petition. Therefore, RWPL
is seeking amendment in the petition to incorporate the changes of
transfer prices in tariff calculation. RWPL has claimed revised variable
charges as Rs. 2.36/kWh and revised total per unit rate of energy Rs.
4.70/kWh.
9.
The matter was heard on 17.03.2015. Sh. Vayankatesh Garg, Advocate
appeared for RWPL and Sh. Umesh Gupta, MD appeared for BLMCL. Both
the petitioners made preliminary submissions to allow Interlocutory
Application and grant interim tariff as prayed for in the I.A. Sh. S.T. Hussain,
appearing for Discoms sought adjournment to file reply. Commission
granted time accordingly. The Respondents Discoms have filed the reply
on 25.03.2015.
10.
The matter was again heard on 31.03.2015. Sh. Vayankatesh Garg,
Advocate appeared for RWPL and Sh. Umesh Gupta, MD appeared for
BLMCL. Sh. P.N. Bhandari, Advocate appeared for Discoms.
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11.
Both the petitioners prayed to allow reasonable interim tariff with giving
the effect of changes made in the structure of the statutory levies in the
Union/State budget for FY 2015-16.
12.
Sh. P.N. Bhandari, Advocate who appeared for Discoms submitted that
transfer price can be determined by the Commission only after the
exercise of international competitive bidding is completed. Therefore, till
then, interim transfer price as has been allowed by the Commission should
be continued. He further argued that due to unprecedented reduction in
the cost of diesel and increase in production of lignite from 3 million tons
to around 7 millions tons, the transfer price should substantially come
down.
13.
Sh. Bhandari further submitted that in light of the above submissions, there
is no justification for reconsidering the various parameters which are, in the
very nature, tentative at this stage. Therefore, the transfer price allowed
by the Commission vide its last order may kindly be continued.
14.
We have considered the prayer of the petitioners for grant of increase in
interim tariff, the objections filed on behalf of the respondents to the same
and arguments addressed by counsel of both parties.
15.
Considering the fact that the existing tariff is applicable only up to
31.03.2015, the Commission, pending determination of the tariff on merits,
considers it appropriate to admit both the petitions and extend the tariff
as allowed by the Commission vide its order dt. 30.05.2014 for FY 2014-15
for RWPL’s power station and transfer price for BLMCL as an interim tariff
applicable from 01.04.2015 subject to final determination of tariff for FY
2015-16.
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16.
In the light of what has been discussed above, interim tariff & transfer
price for unit 1 to 8 on ad-hoc basis for FY 15-16 works out as under:
S.N. Item
Lignite Transfer
1.
Royalty and VAT
Fixed cost
2.
Variable cost
3.
Total Tariff
17.
Price
after
Rate
Cess, Rs. 1397/MT
Rs. 2.38/unit
Rs. 1.68/unit
Rs. 4.06/unit
We would like to make it clear that the above interim tariff is subject to
final determination of RWPL tariff including transfer price of BLMCL and
adjustments if any, thereafter.
(Raghuvendra Singh)
Member (T)
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(Vinod Pandya)
Member (F)
(Vishvanath Hiremath)
Chairman