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PGVCL 2424 2024 MYT Order Dtd. 31.03.2025

The Gujarat Electricity Regulatory Commission's Tariff Order addresses the truing up for FY 2023-24 and the determination of the Aggregate Revenue Requirement (ARR) for the 4th Control Period from FY 2025-26 to FY 2029-30, specifically for Paschim Gujarat Vij Company Limited (PGVCL). The document outlines the background, public hearing process, and detailed financial assessments including energy sales, power purchase costs, and proposed tariff changes. It also includes a summary of objections raised and the Commission's responses, along with directives and tariff proposals.

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0% found this document useful (0 votes)

1K views402 pages

PGVCL 2424 2024 MYT Order Dtd. 31.03.2025

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Amitabh Verma

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GUJARAT ELECTRICITY REGULATORY COMMISSION

Tariff Order

Truing up for FY 2023-24 and

Determination of Aggregate Revenue Requirement (ARR) for the 4th
Control Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

For

Paschim Gujarat Vij Company Limited

(PGVCL)

Case No. 2424/2024

31st March, 2025

6th Floor, GIFT ONE, Road 5C, Zone 5, GIFT CITY

Gandhinagar-382 355 (Gujarat), INDIA
Phone: +91-79-23602000 Fax: +91-79-23602054/55
E-mail: [email protected] : Website www.gercin.org
GUJARAT ELECTRICITY REGULATORY COMMISSION

(GERC)

GANDHINAGAR

Tariff Order

Truing up for FY 2023-24

and Determination of Aggregate Revenue Requirement (ARR) for the 4th
Control Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

For

Paschim Gujarat Vij Company Limited (PGVCL)

Case No. 2424/2024

31st March, 2025

Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th
Control Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

CONTENTS

1. Background and Brief History.........................................................................................................................20

1.1 Background.....................................................................................................................................................20

1.2 Paschim Gujarat Vij Company Limited (PGVCL) ......................................................................20

1.3 Commission’s Order for Approval of True up for FY 2021-22 and determination of
Tariff for FY 2023-24 ................................................................................................................................................21

1.4 Commission’s Order for Approval of True up for FY 2022-23 and determination of
Tariff for FY 2024-25 ................................................................................................................................................21

1.5 Background of the Present Petition .....................................................................................................21

1.6 Registration of the Petition and Public Hearing Process ...........................................................22

1.7 Approach of this Order .............................................................................................................................24

1.8 Contents of this Order ...............................................................................................................................25

2. Summary of PGVCL’s Petition .......................................................................................................................27

2.1 Introduction ....................................................................................................................................................27

2.2 True-Up for FY 2023-24............................................................................................................................27

2.3 Gain/(Loss) sharing in the True-Up for FY 2023-24 ....................................................................28

2.4 Revenue surplus/ (gap) for FY 2023-24 ..............................................................................................29

2.5 Aggregate Revenue Requirement from FY 2025-26 to FY 2029-30 ......................................30

2.6 Summary of projected Revenue Surplus/(Gap) for FY 2025-26 .............................................31

2.7 Proposed Changes in the Tariff Structure for FY 2025-26 .......................................................31

2.8 Request of PGVCL ......................................................................................................................................33

3. Brief outline of objections raised, response from PGVCL and Commission’s View...............35

3.1 Public Response to the Petition ..............................................................................................................35

3.2 Suggestions/ Objections common to all DISCOMs .......................................................................35

Gujarat Electricity Regulatory Commission Page i

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th
Control Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

3.3 Matters related to MGVCL .....................................................................................................................69

4. Truing up of FY 2023-24 ................................................................................................................................. 116

4.1 Energy Sales ................................................................................................................................................ 116

4.2 Energy Requirement and Energy Balance .................................................................................... 119

4.3 Power Purchase Cost ............................................................................................................................... 121

4.4 Capital Expenditure and Capitalization ......................................................................................... 139

4.5 Depreciation................................................................................................................................................. 145

4.6 Interest and Finance charges ............................................................................................................... 148

4.7 Interest on Working Capital ................................................................................................................ 151

4.8 Bad Debts Written Off ............................................................................................................................ 153

4.9 Return on Equity ....................................................................................................................................... 154

4.10 Income Tax................................................................................................................................................... 156

4.11 Non-Tariff Income for FY 2023-24 ................................................................................................... 158

4.12 Aggregate Revenue Requirement approved for FY 2023-24 ................................................. 160

4.13 Revenue for FY 2023-24 ......................................................................................................................... 161

4.14 Revenue (Gap)/Surplus for FY 2023-24 .......................................................................................... 163

5. ARR for the control period from FY 2025-26 to FY 2029-30 and determination of tariff for
FY 2025-26 ....................................................................................................................................................................... 167

5.1 ARR for MYT Control Period from FY 2025-26 to FY 2029-30 ......................................... 167

5.2 Submission of PGVCL ............................................................................................................................ 167

5.3 Estimation of ARR for MYT Control Period from FY 2025-26 to FY 2029-30 ............ 167

5.4 Energy Sales for MYT Control Period from FY 2025-26 to FY 2029-30 ......................... 168

5.5 Detailed Analysis of Energy Sales Projected................................................................................. 175

5.6 Distribution Losses ................................................................................................................................... 182

Gujarat Electricity Regulatory Commission Page ii

5.7 Energy Balance and Energy Requirement Projection.............................................................. 183

5.8 Estimation of ARR for MYT Control Period from FY 2025-26 to FY 2029-30 ............ 187

5.9 Power Purchase Cost for MYT Control Period - Petitioner’s Submission ..................... 187

5.10 Power Purchase Cost for MYT Control Period - Commission’s Analysis ...................... 232

5.11 Capital Expenditure ................................................................................................................................. 268

5.12 Funding of Capitalisation ...................................................................................................................... 282

5.13 Operation and Maintenance (O&M) Expenses ........................................................................... 283

5.14 Depreciation................................................................................................................................................. 301

5.15 Interest on Loan, Interest on Security Deposit and Finance Charges ............................... 303

5.16 Interest on Working Capital ................................................................................................................ 306

5.17 Return on Equity ....................................................................................................................................... 311

5.18 Additional Rate of Return on Equity ............................................................................................... 315

5.19 Return on Capital Employed ............................................................................................................... 321

5.20 Contribution to Contingency Reserve.............................................................................................. 324

5.21 Provision for Bad and Doubtful Debts ............................................................................................ 326

5.22 Income Tax................................................................................................................................................... 327

5.23 Non-Tariff Income .................................................................................................................................... 328

5.24 ARR for MYT Control Period FY 2025-26 to FY 2029-30..................................................... 328

6. Revenue (Gap)/Surplus for FY 2025-26.................................................................................................... 332

6.1 Revenue for FY 2025-26 with Existing Tariff .............................................................................. 332

6.2 Revenue from FPPPA Charges ........................................................................................................... 333

6.3 Other consumer related Income ......................................................................................................... 336

6.4 Agriculture Subsidy ................................................................................................................................. 337

6.5 Total Expected Revenue for FY 2025-26 ........................................................................................ 338

Gujarat Electricity Regulatory Commission Page iii

6.6 Revenue (Gap)/Surplus for FY 2025-26 .......................................................................................... 339

6.7 Consolidated Revenue (Gap)/Surplus of the State-Owned DISCOMs ............................. 340

7. Directives ................................................................................................................................................................ 342

8. Fuel and Power Purchase Price Adjustment Surcharge (FPPAS) ............................................... 344

9. Wheeling Charges and Cross-Subsidy Surcharge................................................................................ 350

9.1 Allocation Matrix ...................................................................................................................................... 350

9.2 Wheeling charges ...................................................................................................................................... 352

9.3 Distribution losses: ................................................................................................................................... 352

10. Tariff Philosophy and Tariff Proposals .................................................................................................... 355

10.1 Introduction ................................................................................................................................................. 355

10.2 Green Tariff ................................................................................................................................................. 355

10.3 Tariff Proposals ......................................................................................................................................... 356

Commission’s Order ................................................................................................................................................... 363

Gujarat Electricity Regulatory Commission Page iv

List of Tables

Table 2-1: ARR proposed by PGVCL for FY 2023-24 True up (Rs. Crore) ....................................27

Table 2-2: Summary of Controllable and Uncontrollable Factors for FY 2023-24 .................28

Table 2-3: Revenue Surplus/ (Gap) as claimed by PGVCL for FY 2023-24 (Rs. Crore) ........29

Table 2-4: ARR proposed by PGVCL from FY 2025-26 to FY 2029-30 (Rs. Crore) ..................30

Table 2-5: Revenue (Gap)/Surplus for FY 2025-26 (Rs. Crore).........................................................31

Table 3-1: Consumers under Arrears more than Rs. 1 Lakh and upto 10 Lakh ........................37

Table 3-2: Feeders having losses between 5% to 15% ...........................................................................41

Table 3-3: No. of Voltage class wise no. of substations ............................................................................43

Table 3-4: Details of faulty meter replaced ....................................................................................................44

Table 3-5: Year wise Ag application rejected/cancelled ........................................................................45

Table 3-6: Details of Category wise Agricultural connection...............................................................46

Table 3-7: Details of circle wise distribution loss as submitted by the Petitioner..................49

Table 3-8: Power Purchase from Exchange (MU) .......................................................................................50

Table 3-9: Average Cost (Rs./kwh) vs Avg cost of supply (Rs./kwh) ...............................................53

Table 4-1: Energy sales approved in truing up for FY 2023-24 (MU) .......................................... 117

Table 4-2: Distribution Losses for FY 2023-24 as submitted by PGVCL (%) ........................... 118

Table 4-3: Distribution Losses approved for truing up for FY 2023-24 (%) ........................... 119

Table 4-4: Energy Requirement and Energy Balance submitted by PGVCL for FY 2023-24
............................................................................................................................................................................................... 120

Table 4-5: Energy Requirement approved by the Commission in truing up for FY 2023-24
............................................................................................................................................................................................... 121

Table 4-6: Allocation of Provisions of Power Purchase Cost to DISCOMs for FY 2023-24 (Rs.
Crore) ................................................................................................................................................................................ 122

Gujarat Electricity Regulatory Commission Page v

Table 4-7: Net Power Purchase Cost as submitted by PGVCL for FY 2023-24 (Rs. Crore) 122

Table 4-8: Gain/ (Loss) on account of Distribution Losses for FY 2023-24 as submitted by
PGVCL ................................................................................................................................................................................ 123

Table 4-9: Gains / (Loss) - Power Purchase Expenses for FY 2023-24 (Rs. Crore) .............. 124

Table 4-10 Reconciliation of power purchase cost between FPPPA submissions & Books
(Rs. Crore)....................................................................................................................................................................... 126

Table 4-11 Reconciliation of power purchase cost (fixed cost) between additional
surcharge submissions & Books (Rs. Crore) .............................................................................................. 126

Table 4-12 Statement of Rebate earned during FY 2023-24 (Rs. Crore) .................................. 127

Table 4-13 Allocation of Additional Provisions considered by the Commission in Power

Purchase Cost (Rs. Crore) ...................................................................................................................................... 127

Table 4-14: Power Purchase Cost approved in truing up for FY 2023-24 (Rs. Crore) ....... 128

Table 4-15: Approved Gain/ (Loss) on account of Distribution Losses for FY 2023-24 (Rs.
Crore) ................................................................................................................................................................................ 128

Table 4-16: Approved gain / (loss) in power purchase expenses in truing up for FY 2023-
24 (Rs. Crore) ................................................................................................................................................................ 129

Table 4-17: Actual O&M Expenses incurred as submitted by PGVCL for FY 2023-24 (Rs.
Crore) ................................................................................................................................................................................ 130

Table 4-18:Treatment of Operation & Maintenance Expenses (Rs. in Crore)......................... 131

Table 4-19: Employee Cost for FY 2023-24 as submitted by PGVCL ............................................. 132

Table 4-20: Employee Cost approved in the truing up for FY 2023-24 (Rs. Crore) ............. 133

Table 4-21: Repair & Maintenance Cost as submitted by PGVCL for FY 2023-24 ................. 133

Table 4-22: R&M Expenses approved for the truing up for FY 2023-24 (Rs. Crore) ........... 135

Table 4-23: Administration & General Expenses submitted by PGVCL for FY 2023-24 (Rs.
in Crore) ........................................................................................................................................................................... 135

Table 4-24: A&G Expenses approved in the truing up for FY 2023-24 (Rs. Crore) .............. 137

Gujarat Electricity Regulatory Commission Page vi

Table 4-25: RDSS Metering Expenses as submitted by PGVCL (Rs. in Crore) .......................... 137

Table 4-26: RDSS Metering OPEX as approved by the Commission in the truing up for FY
2023-24 (Rs. Crore)................................................................................................................................................... 138

Table 4-27: Other Expenses Capitalized as submitted by PGVCL (Rs. in Crore) .................... 138

Table 4-28: Other Expenses Capitalised approved in the truing up for FY 2023-24 (Rs.
Crore) ................................................................................................................................................................................ 139

Table 4-29: Approved O&M expenses and Gain / Loss in the truing up for FY 2023-24 (Rs.
Crore) ................................................................................................................................................................................ 139

Table 4-30: Details submitted by PGVCL w.r.t. CAPEX during FY 2023-24 (Rs. in Crores)
............................................................................................................................................................................................... 140

Table 4-31: Funding of Capitalization (Rs. Crore) ................................................................................... 144

Table 4-32: Approved Capitalisation and sources of funding in the truing up for FY 2023-
24 (Rs. Crore) ................................................................................................................................................................ 145

Table 4-33: Fixed Asset and Depreciation for FY 2023-24 submitted by PGVCL (Rs. in Crore)
............................................................................................................................................................................................... 146

Table 4-34: Treatment of Depreciation (Rs. in Crore) .......................................................................... 146

Table 4-35: Approved fixed assets & depreciation for FY 2023-24 (Rs. Crore) ..................... 147

Table 4-36: Gain/(Loss) due to Depreciation approved in truing up for FY 2022-23 (Rs.
Crore) ................................................................................................................................................................................ 147

Table 4-37: Interest & Finance Charges as submitted by PGVCL (Rs. in Crore) ..................... 148

Table 4-38: Interest & Finance Charges (Rs. in Crore) ......................................................................... 148

Table 4-39: Interest and Finance Charges approved by the Commission in the truing up for
FY 2023-24 (Rs. Crore) ............................................................................................................................................ 150

Table 4-40: Gain / (Loss) approved in the truing up for FY 2023-24 (Rs. Crore) ................. 151

Table 4-41:Interest on working capital claimed by the Petitioner for FY 2023-24 (Rs.
Crore) ................................................................................................................................................................................ 151

Gujarat Electricity Regulatory Commission Page vii

Table 4-42: Interest on working capital approved in the truing up for FY 2023-24 (Rs.
Crore) ................................................................................................................................................................................ 152

Table 4-43: Gain/ (Loss) due to Bad Debts approved in the Truing up for FY 2023-24 (Rs.
Crore) ................................................................................................................................................................................ 154

Table 4-44: Return on Equity approved in truing up for FY 2023-24 (Rs. Crore) ................ 156

Table 4-45: Approved Gain / Loss due to Return on Equity in the truing up for FY 2023-24
(Rs. Crore)...................................................................................................................................................................... 156

Table 4-46: Approved Gain / (Loss) due to Income Tax in the truing up for FY 2023-24 (Rs.
Crore) ................................................................................................................................................................................ 157

Table 4-47: Approved Gains/(Losses) due to Non-Tariff Income in the truing up for FY
2023-24 (Rs. Crore)................................................................................................................................................... 159

Table 4-48: ARR approved in truing up for FY 2023-24 (Rs. Crore) ............................................. 160

Table 4-49: Revenue approved in the truing up for FY 2023-24 (Rs. Crore) ........................... 161

Table 4-50: Subsidy received vs Subsidy claimed in the truing up for FY 202324 (Rs. Crore)
............................................................................................................................................................................................... 162

Table 4-51: Revenue (Gap) / Surplus for FY 2023-24 submitted by PGVCL (Rs. in Crore) .......... 163

Table 4-52: Additional Reduction as GUVNL profit for State DISCOMs for FY 2023-24 (Rs.
Crore) ................................................................................................................................................................................ 164

Table 4-53: Revenue (Gap)/Surplus approved in the truing up for FY 2023-24 (Rs. Crore)
............................................................................................................................................................................................... 165

Table 5-1: Historical category-wise units sold (MUs) ........................................................................... 169

Table 5-2: Category-wise CAGR of Units Sold ............................................................................................. 169

Table 5-3: Historical Category-wise No. of Consumers ........................................................................ 170

Table 5-4: CAGR of no. of Consumers .............................................................................................................. 171

Table 5-5: Historical Category-wise Connected Load (MW/MVA) ................................................. 171

Table 5-6: CAGR of Connected Load ................................................................................................................. 172

Gujarat Electricity Regulatory Commission Page viii

Table 5-7: Growth rates used by PGVCL for MYT Control Period ................................................... 173

Table 5-8: Sales projected by PGVCL for MYT Control Period (MU) ............................................. 173

Table 5-9: No. of Consumers projected by PGVCL for MYT Control Period............................... 174

Table 5-10: Connected Load projected by PGVCL for MYT Control Period (MW/MVA) .... 175

Table 5-11: Energy sales approved for RGP category during MYT Control Period (MU) . 176

Table 5-12: Energy sales approved for GLP category during MYT Control Period (MU) .. 177

Table 5-13: Energy sales approved for Non-RGP & LTMD category during MYT Control
Period (MU) ................................................................................................................................................................... 178

Table 5-14: Energy sales approved for PWW category during MYT Control Period (MU)
............................................................................................................................................................................................... 179

Table 5-15: Energy sales approved for Agriculture category during MYT Control Period
(MU) ................................................................................................................................................................................... 180

Table 5-16: Energy sales approved for Industrial HT category during MYT Control Period
(MU) ................................................................................................................................................................................... 181

Table 5-17: Projection of Sales approved by the Commission for MYT Control Period (MU)
............................................................................................................................................................................................... 181

Table 5-18: Projection of Distribution Loss (%) ...................................................................................... 182

Table 5-19: Approved Distribution Loss (%) for MYT Control Period ........................................ 183

Table 5-20: Energy Balance for MYT Control Period as submitted by PGVCL (MUs) .......... 184

Table 5-21: Consolidated Energy Requirement as submitted by PGVCL for MYT Control
Period (MUs) ................................................................................................................................................................. 184

Table 5-22: Approved Energy requirement for MYT Control Period (MUs) ............................ 185

Table 5-23: Approved Energy Balance for PGVCL for MYT Control Period .............................. 185

Table 5-24: Approved Consolidated Energy Requirement for MYT Control Period (MUs)
............................................................................................................................................................................................... 186

Table 5-25: Local Power Purchase for FY 2025-26................................................................................. 188

Gujarat Electricity Regulatory Commission Page ix

Table 5-26: Existing Capacity Allocation with GUVNL .......................................................................... 189

Table 5-27: Additional Capacity envisaged for MYT Control Period ............................................ 192

Table 5-28: Decapitalisation schedule of existing plants ................................................................... 196

Table 5-29: Renewable Purchase Obligation (RPO) as notified by Ministry of Power under
S.O. 4617(E) ................................................................................................................................................................... 204

Table 5-30: Additional RE Capacity envisaged for MYT Control Period ..................................... 204

Table 5-31: Procurement from RE for meeting projected RPO ....................................................... 205

Table 5-32: Projected Power Purchase Cost for FY 2025-26 ............................................................ 206

Table 5-33: Projected Power Purchase Cost for FY 2026-27 ............................................................ 210

Table 5-34: Projected Power Purchase Cost for FY 2027-28 ............................................................ 214

Table 5-35: Projected Power Purchase Cost for FY 2028-29 ............................................................ 218

Table 5-36: Projected Power Purchase Cost for FY 2029-30 ............................................................ 223

Table 5-37: Projected Transmission Charges for MYT Control Period (Rs. Crore).............. 227

Table 5-38: GUVNL Cost for MYT Control Period (Rs. Crore) ............................................................ 228

Table 5-39: Projected Fixed Cost for DISCOMs for MYT Control Period (Rs. Crore) ........... 228

Table 5-40: Projected Variable Cost for DISCOMs for MYT Control Period .............................. 228

Table 5-41: Projected Net Power Purchase Cost for MYT Control Period (Rs. Crore)........ 229

Table 5-42: Allocation of Power Purchase Cost for FY 2025-26...................................................... 231

Table 5-43: Total Revenue (Gap)/ Surplus (Rs. Crore) for FY 2025-26 ...................................... 231

Table 5-44: Bulk Supply Tariff for FY 2025-26 ......................................................................................... 232

Table 5-45: Approved Power Purchase under SSDSP for FY 2025-26 ......................................... 232

Table 5-46: Approved Power Purchase under SSDSP for FY 2026-27 ......................................... 233

Table 5-47: Capacity Contracted Source-Wise by GUVNL as submitted by PGVCL (MW) . 234

Table 5-48: Source wise additional capacity envisaged for MYT Control Period (MW) ... 234

Gujarat Electricity Regulatory Commission Page x

Table 5-49: Decapitalisation envisaged during MYT Control Period (MW) ............................. 235

Table 5-50: New RE Plants coming up during the MYT Control Period ...................................... 236

Table 5-51: Procurement from RE for meeting projected RPO for FY 2025-26 to FY 2029-
30 (MUs) .......................................................................................................................................................................... 236

Table 5-52: Energy Requirement and Despatch for MYT Control Period (MUs) ................... 237

Table 5-53: Approved Power Purchase Cost for FY 2025-26 ............................................................ 238

Table 5-54: Approved Power Purchase Cost for FY 2026-27 ............................................................ 242

Table 5-55: Approved Power Purchase Cost for FY 2027-28 ............................................................ 246

Table 5-56: Approved Power Purchase Cost for FY 2028-29 ............................................................ 250

Table 5-57: Approved Power Purchase Cost for FY 2029-30 ............................................................ 254

Table 5-58: Approved Transmission Charges for MYT Control Period (Rs. Crore) ............. 259

Table 5-59: Approved GUVNL Cost for MYT Control Period .............................................................. 260

Table 5-60: Approved Fixed Cost for MYT Control Period (Rs. Crore) ........................................ 260

Table 5-61: Approved Variable Cost for MYT Control period (Rs. Crore) ................................. 260

Table 5-62: Approved Total Power Purchase Cost for MYT Control Period (Rs. Crore) ... 261

Table 5-63: Approved Allocation of Power Purchase Cost for FY 2025-26 (Rs. Crore) ..... 261

Table 5-64: Approved Total Revenue (Gap) / Surplus for FY 2025-26 (Rs. Crore).............. 262

Table 5-65: Approved Bulk Supply Tariff for FY 2025-26 (Rs. Crore) ......................................... 262

Table 5-66: Approved Allocation of Power Purchase Cost for FY 2026-27 (Rs. Crore) ..... 263

Table 5-67: Approved Total Revenue (Gap) / Surplus for FY 2026-27 (Rs. Crore).............. 263

Table 5-68: Approved Bulk Supply Tariff for FY 2026-27 (Rs. Crore) ......................................... 263

Table 5-69: Approved Allocation of Power Purchase Cost for FY 2027-28 (Rs. Crore) ..... 264

Table 5-70: Approved Total Revenue (Gap) / Surplus for FY 2027-28 (Rs. Crore).............. 264

Table 5-71: Approved Bulk Supply Tariff for FY 2027-28 (Rs. Crore) ......................................... 265

Gujarat Electricity Regulatory Commission Page xi

Table 5-72: Approved Allocation of Power Purchase Cost for FY 2028-29 (Rs. Crore) ..... 265

Table 5-73: Approved Total Revenue (Gap) / Surplus for FY 2028-29 (Rs. Crore).............. 266

Table 5-74: Approved Bulk Supply Tariff for FY 2028-29 (Rs. Crore) ......................................... 266

Table 5-75: Approved Allocation of Power Purchase Cost for FY 2029-30 (Rs. Crore) ..... 267

Table 5-76: Approved Total Revenue (Gap) / Surplus for FY 2029-30 (Rs. Crore).............. 267

Table 5-77: Approved Bulk Supply Tariff for FY 2029-30 (Rs. Crore) ......................................... 268

Table 5-78: Capital Expenditure Plan projected for MYT Control Period (Rs. Crore) ........ 268

Table 5-79: Evaluation of DPRs submitted by PGVCL............................................................................ 277

Table 5-80: Approved Capital Expenditure Plan for MYT Control Period (Rs. Crore) ....... 279

Table 5-81: Funding of Capitalisation projected for MYT Control Period (Rs. Crore) ....... 282

Table 5-82: Approved funding of Capital Expenditure Plan for MYT Control Period (Rs.
Crore) ................................................................................................................................................................................ 283

Table 5-83: Projected O&M Expenses for MYT Control Period (Rs. Crore) .............................. 283

Table 5-84: Audited O&M Expenditure for last 10 years (Rs. Crore) ........................................... 285

Table 5-85: Base O&M expenses for FY 2018-19 (Rs. Crore) ............................................................ 286

Table 5-86: Determination of weightages.................................................................................................... 287

Table 5-87: Calculation of Escalation Factor .............................................................................................. 287

Table 5-88: Employee Cost projected for MYT Control Period (Rs. Crore)............................... 288

Table 5-89: A&G Expenses projected for MYT Control Period (Rs. Crore) ............................... 289

Table 5-90: K-factor as computed by PGVCL .............................................................................................. 290

Table 5-91: R&M expenses projected for MYT Control Period (Rs. Crore) ............................... 290

Table 5-92: Discovered price of Smart Meters (Rs./meter) .............................................................. 291

Table 5-93: Proposed RDSS Metering Opex for MYT Control Period (Rs. Crore) .................. 292

Table 5-94: O&M Expenditure for last 10 years (Rs. Crore) .............................................................. 295

Gujarat Electricity Regulatory Commission Page xii

Table 5-95: Approved CPI & WPI weightage............................................................................................... 296

Table 5-96: Escalation factor approved for MYT Control Period ................................................... 296

Table 5-97: O&M expenses (EC and A&G) determined for FY 2023-24 (base year) (Rs.
Crore) ................................................................................................................................................................................ 297

Table 5-98: O&M expenses (EC and A&G) determined for MYT Control Period (Rs. Crore)
............................................................................................................................................................................................... 298

Table 5-99: Approved K-factor for MYT Control Period ...................................................................... 298

Table 5-100: R&M expenses for MYT Control Period (Rs. Crore) .................................................. 299

Table 5-101: RDSS smart metering implementation plan.................................................................. 300

Table 5-102: Approved O&M Expenses for MYT Control Period (Rs. Crore) ........................... 300

Table 5-103: Depreciation projected for MYT Control Period (Rs. Crore) ............................... 301

Table 5-104: Depreciation approved on assets capitalised prior to 01.04.2025 for MYT
Control Period (Rs. Crore)..................................................................................................................................... 302

Table 5-105: Depreciation approved on assets capitalised w.e.f 01.04.2025 for MYT
Control Period (Rs. Crore)..................................................................................................................................... 303

Table 5-106: Depreciation approved for the MYT Control period (Rs. Crore) ....................... 303

Table 5-107: Interest and Finance Charges projected for MYT Control Period (Rs. Crore)
............................................................................................................................................................................................... 304

Table 5-108: Approved Interest on Loan, Interest on Security Deposit and Finance Charges
for MYT Control Period (Rs. Crore).................................................................................................................. 306

Table 5-109: Interest on Working Capital projected for MYT Control Period (Rs. Crore)
............................................................................................................................................................................................... 306

Table 5-110: Approved Interest on Working Capital for MYT Control Period (Rs. Crore)
............................................................................................................................................................................................... 310

Table 5-111: Return on Equity projected for MYT Control Period (Rs. Crore) ...................... 311

Gujarat Electricity Regulatory Commission Page xiii

Table 5-112: Approved Return on Equity for MYT Control Period on assets capitalised up
to 31.03.2025 (Rs. Crore)....................................................................................................................................... 315

Table 5-113: Parameters for additional RoE for Wires business ................................................... 316

Table 5-114: Parameters for additional RoE for Retail Supply business .................................. 318

Table 5-115: Return on Capital Employed projected for MYT Control Period (Rs. Crore)
............................................................................................................................................................................................... 321

Table 5-116: Return on Capital Employed approved on assets capitalised w.e.f 01.04.2025
for MYT Control Period (Rs. Crore).................................................................................................................. 323

Table 5-117: Contribution to Contingency Reserve for MYT Control Period .......................... 325

Table 5-118: Contribution to Contingency Reserve approved for MYT Control Period (Rs.
Crore) ................................................................................................................................................................................ 326

Table 5-119: Income Tax Projected for MYT Control Period (Rs. Crore) .................................. 327

Table 5-120: Non-Tariff Income projected for MYT Control Period (Rs. Crore) ................... 328

Table 5-121: Approved Non-Tariff Income for MYT Control Period (Rs. Crore) ................... 328

Table 5-122: Projected ARR for MYT Control Period (Rs. Crore) ................................................... 328

Table 5-123: Approved ARR for MYT Control period (Rs. Crore) .................................................. 330

Table 6-1: Revenue at Existing Tariff for FY 2025-26 (Rs. Crore) .................................................. 332

Table 6-2: Approved Revenue at Existing Tariff for FY 2025-26 (Rs. Crore)........................... 333

Table 6-3: Revenue from FPPPA Charges for FY 2025-26 (Rs. Crore) ......................................... 333

Table 6-4: FPPPA Computation for FY 2025-26 (Rs. Crore) .............................................................. 334

Table 6-5: Approved Base FPPAS for FY 2025-26 (Rs. Crore) .......................................................... 335

Table 6-6: Approved revenue from FPPAS charges for FY 2025-26 ............................................. 336

Table 6-7: Other Consumer related income for FY 2025-26 (Rs Crore) ..................................... 336

Table 6-8: Approved Other Consumer related income for FY 2025-26 (Rs Crore) .............. 336

Table 6-9: Agriculture Subsidy for FY 2025-26 (Rs. Crore) ............................................................... 337

Gujarat Electricity Regulatory Commission Page xiv

Table 6-10: Agriculture Subsidy for FY 2025-26 (Rs. Crore) ............................................................ 337

Table 6-11: Total projected revenue for FY 2025-26 (Rs. Crore)................................................... 338

Table 6-12: Approved Total Revenue for FY 2025-26 (Rs. Crore) ................................................. 338

Table 6-13: Estimated Revenue (Gap)/ Surplus for FY 2025-26 (Rs. Crore) ........................... 339

Table 6-14: Approved Revenue (Gap)/ Surplus for FY 2025-26 (Rs. Crore) ........................... 339

Table 6-15: Consolidated Surplus computed for FY 2025-26 (Rs. Crore) ................................. 340

Table 10-1: Proposed ToU charges for FY 2025-26 ....................................................................................... 358

Table 10-2: Discount / rebate offered to Smart Prepayment Consumers in other States ............ 359

Table 10-3: Comparison of rebate provided by other states ..................................................................... 360

Gujarat Electricity Regulatory Commission Page xv

ABBREVIATIONS

A&G Administration and General Expenses

AB Cable Aerial Bunched Cable
ABR Average Billing Rate
AG Agriculture
APTEL Appellate Tribunal for Electricity
ARR Aggregate Revenue Requirement
BST Bulk Supply Tariff
C&I Commercial & Industrial
CAGR Compounded Annual Growth Rate
CAPEX Capital Expenditure
CERC Central Electricity Regulatory Commission
Cr Crore
CSS Cross-Subsidy Surcharge
PGVCL Dakshin Gujarat Vij Company Limited
DISCOM Distribution Company
DSM Deviation Settlement Mechanism
EA Electricity Act
EHT Extra High Tension
EHV Extra High Voltage
FPPPA Fuel and Power Purchase Price Adjustment
FY Financial Year
GEB Gujarat Electricity Board
GERC Gujarat Electricity Regulatory Commission
GETCO Gujarat Energy Transmission Corporation Limited
GFA Gross Fixed Assets
GLP General Lighting Purpose
GoG Government of Gujarat
GSECL Gujarat State Electricity Corporation Limited
GUVNL Gujarat Urja Vikas Nigam Limited

Gujarat Electricity Regulatory Commission Page xvi

HT High Tension
Ind-AS Indian Accounting Standards
JGY Jyoti Gram Yojna
kV kilo Volt
kVA kilo Volt Ampere
kVAh kilo Volt Ampere Hour
kVARh kilo Volt Ampere Reactive Hour
kWh kilo Watt Hour
LT Low Tension
MCLR Marginal Cost of Funds based Lending Rate
MGVCL Madhya Gujarat Vij Company Limited
Mus Million Units (Million kWh)
MW Mega Watt
MYT Multi Year Tariff
O&M Operation & Maintenance
OA Open Access
PF Power Factor
PFC Power Finance Corporation
PGCIL Power Grid Corporation of India Limited
PGVCL Paschim Gujarat Vij Company Limited
PPA Power Purchase Agreement
PWW Public Water Works
R&M Repair and Maintenance
RBI Reserve Bank of India
RE Revised Estimate
REC Renewable Energy Certificate
RGP Residential General Purpose
RLDC Regional Load Despatch Centre
RoE Return on Equity
ROCE Return on Capital Employed
Rs. Rupees

Gujarat Electricity Regulatory Commission Page xvii

SBAR State Bank Advance Rate

SBI State Bank of India
SLDC State Load Despatch Centre
UGVCL Uttar Gujarat Vij Company Limited
WRLDC Western Regional Load Despatch Centre
YoY Year on Year

Gujarat Electricity Regulatory Commission Page xviii

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

GUJARAT ELECTRICITY REGULATORY COMMISSION

GANDHINAGAR

Case No. 2424/2024

Date of the Order 31/03/2025

CORAM

Anil Mukim, Chairman

Mehul M. Gandhi, Member
S. R. Pandey, Member

ORDER

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1. Background and Brief History

1.1 Background
Paschim Gujarat Vij Company Ltd., (hereinafter referred to as “PGVCL” or the “Petitioner”)
has filed a petition under Section 62 of the Electricity Act, 2003, read with Gujarat Electricity
Regulatory Commission (Multi-Year Tariff) Regulations, 2016, for the Truing up of FY 2023-
24 and read with Gujarat Electricity Regulatory Commission (Multi-Year Tariff) Regulations,
2024 for Determination of Aggregate Revenue Requirement (ARR) for the 4th Control Period
(FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26 on 30th November, 2024.

After technical validation, the petition was registered on 16th December 2024 as Case No.
2424/2024 for PGVCL and as provided under Regulation 29.1 of the GERC (MYT)
Regulations, 2016, and Regulation 26.1 of the GERC (MYT) Regulations, 2024, the
Commission has proceeded with this Tariff Order.

1.2 Paschim Gujarat Vij Company Limited (PGVCL)

The Government of Gujarat unbundled and restructured the Gujarat Electricity Board with effect
from 1st April, 2005. The Generation, Transmission and Distribution businesses of the erstwhile
Gujarat Electricity Board were transferred to seven successor companies. The seven successor
companies are listed below:

Generation Company: Gujarat State Electricity Corporation Limited (GSECL)

Transmission Company: Gujarat Energy Transmission Corporation Limited (GETCO)

Distribution Companies:
Sr. No. Name of Company
1 Dakshin Gujarat Vij Company Limited (DGVCL)
2 Madhya Gujarat Vij Company Limited (MGVCL)
3 Uttar Gujarat Vij Company Limited (UGVCL)
4 Paschim Gujarat Vij Company Limited (PGVCL)

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Gujarat Urja Vikas Nigam Limited (GUVNL), a holding company of the above named 6 subsidiary
companies is responsible for bulk purchase of electricity from various sources and supply to
Distribution Companies and also, other activities including trading of electricity.

Government of Gujarat, vide Notification dated 3rd October, 2006, notified the final opening
balance sheets of the transferee companies as on 1st April, 2005. The value of assets and liabilities,
which stand transferred from the erstwhile Gujarat Electricity Board to the transferee companies,
include Paschim Gujarat Vij Company Limited (PGVCL). Assets and liabilities (gross block, loans,
and equity), as on the date mentioned in the notification, have been considered by the Commission
in line with the Financial Restructuring Plan (FRP), as approved by Government of Gujarat.

1.3 Commission’s Order for Approval of True up for FY 2021-22 and determination of Tariff
for FY 2023-24
The petitioner filed a petition for Truing Up of FY 2021-22 and determination of Tariff for FY
2023-24 on 15th December, 2022. The petition was registered on 28th December 2022 (Case No.
2168/2022). The Commission approved the Truing-Up of FY 2021-22 and determined the Tariff
for FY 2023-24 vide order dated 31st March, 2023.

1.4 Commission’s Order for Approval of True up for FY 2022-23 and determination of Tariff
for FY 2024-25
The petitioner submitted the petition for Truing–up of FY 2022-23 and Determination of Tariff for
FY 2024-25 on 12th January 2024. After technical validation of the petition, it was registered on
24th January 2024 (Case No. 2320/2024). The Commission approved the Truing Up of FY 2022-
23 and determined the Tariff for FY 2024-25- vide order dated 1st June, 2024.

1.5 Background of the Present Petition

The Commission has notified the GERC (MYT) Regulations, 2016 for the Control Period of FY
2016-17 to FY 2020-21. Regulation 16.2(iii) of the GERC (MYT) Regulations, 2016 provides for
the truing up of previous year’s expenses and revenue based on audited accounts vis-à-vis the
approved forecast and categorisation of variation in performance as those caused by factors within
the control of applicant (controllable factors) and those caused by factors beyond the control of

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applicant (uncontrollable factors).

The Commission has notified GERC (MYT) Regulations, 2024 on 6th August 2024 for the Control
Period of FY 2025-26 to FY 2029-30. Regulation 16.3.3 of GERC (MYT) Regulations, 2024
provides for determination of Aggregate Revenue Requirement for Distribution Wires Business
and Retail Supply Business for each year of the Control Period and tariff for the first year of the
Control Period, at the beginning of the Control Period.

1.6 Registration of the Petition and Public Hearing Process

The petitioner submitted the current petition for Truing–up of FY 2023-24 and determination of
ARR for FY 2025-26 to FY 2029-30 and determination of Retail Supply Tariff for FY 2025-26.
After technical validation of the petition, it was registered on 16th December, 2024 (Case No.
2424/2024) and as provided under Regulation 29.1 of the GERC (MYT) Regulations, 2016 and
Regulation 26.1 of the GERC (MYT) Regulations, 2024, the Commission has proceeded with this
Tariff Order.

The Petitioner vide additional submissions dated 07.01.2025 rectified certain errors regarding
O&M expenses projected for the Control Period in Petition No. 2424/2024.

In accordance with Section 64 of the Electricity Act, 2003, the Commission directed PGVCL to
publish its application in the abridged form to ensure public participation.

The Public Notice, inviting objections/ suggestions from the stakeholders on the Truing up and
Tariff determination petition filed by PGVCL was published on the following newspapers:

S. No. Name of the Newspaper Language Date of publication

1 The Indian Express English 23/12/2024
2 Divya Bhaskar Gujarati 23/12/2024

The petitioner also placed the public notice and the petition on the website (www.pgvcl.com)
and also hosted on the website of GUVNL, i.e., www.guvnl.com, which is the holding

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Company of the four State owned DISCOMs for inviting objections and suggestions on its
petition. The interested parties/stakeholders were asked to file their objections / suggestions on
or before 22nd January 2025. The Commission also placed the petition on its website
(www.gercin.org) for information and study of all the stakeholders. The Commission also
issued a notice for public hearing in the following newspapers in order to solicit wider
participation by the stakeholders.

S. No. Name of the Newspaper Language Date of publication

1 The Indian Express English 13/02/2025
2 Divya Bhaskar Gujarati 13/02/2025
3 Gujarat Samachar Gujarati 13/02/2025

The Commission received objections/suggestions from the consumers/consumer organizations

as shown in the Table below. The Commission examined the objections/suggestions received
and fixed the date for Public Hearing at Commission’s Office for the aforesaid Petition on 25th
February, 2025 at 3:30 PM. The public hearings were conducted in the Commission’s Office
at Gandhinagar as scheduled on the above date. The objectors participated in the public hearing
and presented their objections.

The status of stakeholders who submitted their written suggestion / objections, those who
remained present in public hearing, those who could not attend the public hearings and those
who made oral submissions are given in the Table below:

Table 1.3: List of Stakeholders

S. Written Oral Present on the day of

Name of Stakeholders
No. Submission Submission Public Hearing
Gujarat Krushi Vij
1 Grahak Surakhsya Yes No No
Sangha

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S. Written Oral Present on the day of

Name of Stakeholders
No. Submission Submission Public Hearing
Bhavnagar District
2 Chamber of Commerce Yes No No
& Industry
3 Shri K.K.Bajaj Yes No No
4 AASAN Consultancy Yes Yes Yes

5 Gujarat Chamber of Yes Yes Yes

Commerce & Industry

6 Sihor Steel Re-rolling Yes Yes Yes

Mills Association
7 Shri Himanshu Savaliya Yes No No

8 Innovative Energy Yes Yes Yes

Resource Association

A short note on the main issues raised by the objectors in their submissions on the petition, along
with the response of PGVCL and the Commission’s views on the response, are briefly given in
Chapter 3.

1.7 Approach of this Order

PGVCL has approached the Commission with the present petition for Truing up of FY 2023-24
and determination of ARR for the 4th MYT Control Period FY 2025-26 to FY 2029-30 & Retail
Supply Tariff for FY 2025-26.

The Commission has undertaken Truing up for FY 2023-24, including computation of gains and
losses for FY 2023-24, based on the submissions of the petitioner, and audited Annual Accounts
made available by the petitioner.

While truing up of FY 2023-24, the Commission has been primarily guided by the following
principles:

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March 2025
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• Controllable parameters have been considered at the level approved as per the Tariff Order
dated 31st March 2023, unless the Commission considers that there are valid reasons for
revision of the same.
• Uncontrollable parameters have been revised, based on the actual performance observed.

The Truing Up for FY 2023-24 has been considered, based on the GERC (MYT) Regulations, 2016
and the determination of ARR for the MYT Control Period FY 2025-26 to FY 2029-30 & Retail
Supply Tariff for FY 2025-26 has been done, based on the GERC (MYT) Regulations, 2024 & this
Tariff Order.

1.8 Contents of this Order

The Order is divided into Ten chapters, as under:

1. The First Chapter provides a background of the petitioner, the petition and details of the

public hearing process and approach adopted for this order.

2. The Second Chapter provides a summary of the petition.

3. The Third Chapter deals with the public hearing process including the Objections raised

by Stakeholders, PGVCL’s response and the Commission’s views on the response.

4. The Fourth Chapter deals with the Truing up for FY 2023-24.

5. The Fifth Chapter deals with the approval of ARR for the 4th MYT Control Period FY

2025-26 to FY 2029-30.

6. The Sixth Chapter deals with the Cumulative Revenue Gap/(Surplus) for FY 2025-26.

7. The Seventh Chapter deals with compliance of the Directives and issue of fresh directives

for PGVCL.

8. The Eighth Chapter deals with fuel and power purchase surcharge.

9. The Ninth Chapter deals with wheeling and cross subsidy surcharges.

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10. The Tenth Chapter deals with the Tariff philosophy and Determination of retail supply

Tariff for FY 2025-26.

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2. Summary of PGVCL’s Petition

2.1 Introduction
This chapter deals with highlights of the petition as submitted by PGVCL for truing up of FY 2023-
24 and determination of ARR for the 4th MYT Control Period from FY 2025-26 to FY 2029-30 and
Retail Supply Tariff for FY 2025-26.

2.2 True-Up for FY 2023-24

PGVCL submitted the petition on 30th November, 2024 seeking approval of truing up of ARR for
FY 2023-24. PGVCL has worked out its Aggregate Revenue Requirement (ARR) for FY 2023-24
as a part of the True Up for FY 2023-24. PGVCL has presented the actual cost components based
on audited annual accounts for FY 2023-24. A summary of the proposed ARR for Truing-up of FY
2023-24 compared with the approved ARR for FY 2023-24 in the Tariff Order dated 31st March
2023 is presented in the Table given below:
Table 2-1: ARR proposed by PGVCL for FY 2023-24 True up (Rs. Crore)

Sr. 2023-24 2023-24

Particulars Deviation
No. (Approved) (Actual)
1 Cost of Power Purchase 18,791.77 21,957.00 (3,165.23)
2 Operation & Maintenance Expenses 1,664.49 1,872.42 (207.93)
2.1 Employee Cost 1,257.82 1,429.32 (171.50)
2.2 Repair & Maintenance 201.61 407.33 (205.72)
2.3 Administration & General Charges 227.30 279.49 (52.19)
2.4 RDSS Metering OPEX 297.90 - 297.90
2.5 Other Expenses Capitalised (320.14) (243.73) (76.41)
3 Depreciation 1,034.40 1,030.00 4.40
4 Interest & Finance Charges 245.49 360.19 (114.70)
5 Interest on Working Capital - - -
6 Bad Debts Written Off 5.62 - 5.62
7 Sub-Total (1 to 6) 21,741.77 25,219.61 (3,477.84)

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Sr. 2023-24 2023-24

Particulars Deviation
No. (Approved) (Actual)
8 Return on Equity 712.53 731.89 (19.36)
9 Provision for Tax / Tax Paid 37.95 489.21 (451.26)
10 Total Expenditure (7 to 9) 22,492.25 26,440.71 (3,948.46)
11 Less: Non-Tariff Income 316.59 351.36 (34.77)
12 Aggregate Revenue Requirement (10 - 11) 22,175.66 26,089.35 (3,913.69)

2.3 Gain/(Loss) sharing in the True-Up for FY 2023-24

PGVCL has claimed the following gain/(loss) sharing in the truing up of FY 2023-24:

Table 2-2: Summary of Controllable and Uncontrollable Factors for FY 2023-24

Gain/(Loss)
Gain/(Loss) due
FY 2023-24 FY 2023-24 due to
Sr. No. Particulars to Controllable
(Approved) (Actual) Uncontrollable
Factors
Factors
1 Cost of Power Purchase 18,791.77 21,957.00 149.53 (3,314.76)

2 Operation & Maintenance Expenses 1,664.49 1,872.42 (135.89) (72.03)

2.1 Employee Cost 1,257.82 1,429.32 (50.17) (121.34)

2.2 Repair & Maintenance 201.61 407.33 (42.95) (162.77)

Administration & General 227.30 279.49 (42.77) (9.42)

2.3
Charges
2.4 Extraordinary Items - - - -

2.5 RDSS Metering Opex 297.90 - - 297.90

2.6 Other Expenses Capitalised (320.14) (243.73) - (76.41)

3 Depreciation 1,034.40 1,030.00 - 4.40

4 Interest & Finance Charges 245.49 360.19 - (114.70)

5 Interest on Working Capital - - - -

6 Bad Debts Written Off 5.62 - 5.62 -

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Gain/(Loss)
Gain/(Loss) due
FY 2023-24 FY 2023-24 due to
Sr. No. Particulars to Controllable
(Approved) (Actual) Uncontrollable
Factors
Factors
7 Return on Equity 712.53 731.89 - (19.36)

8 Tax / Tax Paid 37.95 489.21 - (451.26)

9 ARR (1 to 8) 22,492.25 26,440.71 19.26 (3,967.72)

10 Non - Tariff Income 316.59 351.36 - (34.77)

11 Total ARR (9-10) 22175.66 26,089.35 19.26 (3,932.95)

2.4 Revenue surplus/ (gap) for FY 2023-24

As shown in the Table below, PGVCL has claimed a Revenue surplus of Rs. 493.22 Crore in the
Truing up after considering the gain/(loss) due to controllable / uncontrollable factors:

Table 2-3: Revenue Surplus/ (Gap) as claimed by PGVCL for FY 2023-24 (Rs. Crore)
Sr.
Particulars Amount
No.
1 Aggregate Revenue Requirement originally approved for FY 2023-24 22,175.66
2 Less: (Gap) / Surplus of FY 2021-22 (1,134.30)
Less: Gain / (Loss) on account of Uncontrollable factor to be passed on to
3 (3,932.95)
Consumer
Less: Gain / (Loss) on account of Controllable factor to be passed on to Consumer
4 6.42
(1/3rd of Total Gain / Loss)
5 Revised ARR for FY 2023-24 (1-2-3-4) 27,236.49
6 Revenue from Sale of Power 26,863.63
7 Other Income (Consumer related) 380.87
8 Total Revenue excluding Subsidy (6+7) 27,244.49
9 Agriculture Subsidy 457.36
10 GUVNL Profit / (Loss) Allocation 27.85
11 Total Revenue including Subsidy (8+9+10) 27,729.70

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Sr.
Particulars Amount
No.
Revised (Gap)/ Surplus after treating gains/(losses) due to Controllable/
12 493.22
Uncontrollable factors (11-5)

2.5 Aggregate Revenue Requirement from FY 2025-26 to FY 2029-30

PGVCL, in the petition, sought approval of ARR for FY 2025-26 to FY 2029-30. A summary of
the proposed ARR from FY 2025-26 to FY 2029-30 is presented in the Table given below:
Table 2-4: ARR proposed by PGVCL from FY 2025-26 to FY 2029-30 (Rs. Crore)
FY 2025- FY 2026- FY 2027- FY 2028- FY 2029-
Sr.
Particulars 26 27 28 29 30
No.
Projected Projected Projected Projected Projected
1 Total Cost of Power Purchase 22,965.28 24,045.04 24,928.91 25,308.84 25,449.46
Inter-State Transmission
2
Charges
Intra-State Transmission
3
Charges
Operation & Maintenance
4 1,764.68 1,956.62 2,361.90 2,470.97 2,554.73
Expenses
4.a Employee Expense 1,253.55 1,312.03 1,373.24 1,437.30 1,504.35
4.b A&G Expense 267.70 280.19 293.26 306.94 321.26
4.c R&M Expense 435.25 488.23 538.45 587.00 607.42
4.d RDSS Metering Opex 145.29 229.02 526.26 526.26 526.26
4.e Other Expenses Capitalised (337.12) (352.85) (369.31) (386.54) (404.57)
5 Depreciation 1,470.83 1,634.85 1,792.39 1,947.58 2,103.49
6 Interest & Finance Charges 276.58 226.78 229.01 239.71 267.09
7 Interest on Working Capital - - - - -
8 Bad debts written off 1.16 1.16 1.16 1.16 1.16
Contribution to contingency 131.40 147.39 162.56 177.21 191.93
9
reserves
10 Total Revenue Expenditure 26,609.92 28,011.85 29,475.92 30,145.48 30,567.86
11 Return on Equity 740.66 740.66 740.66 740.66 740.66
12 Return on Capital Employed 102.27 344.61 611.80 862.18 1,105.13
13 Income Tax 294.52 379.19 472.55 560.03 644.92
Aggregate Revenue
14 27,747.38 29,476.31 31,300.93 32,308.35 33,058.56
Requirement
15 Add: DSM expenses
16 Less: Non Tariff Income 350.82 350.82 350.82 350.82 350.82
Less: Income from Other - - - - -
17
Business

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FY 2025- FY 2026- FY 2027- FY 2028- FY 2029-

Sr. 26 27 28 29 30
Particulars
No.
Projected Projected Projected Projected Projected
Less: Income from Wheeling
Charges payable by Distribution
System Users other than the retail
18
consumers getting electricity
supply from the same
Distribution Licensee
Aggregate Revenue 27,396.56 29,125.49 30,950.11 31,957.53 32,707.74
19
Requirement

2.6 Summary of projected Revenue Surplus/(Gap) for FY 2025-26

The Table below summarises the Aggregate Revenue Requirement, the total revenue with the
existing Tariff and the Revenue Surplus/ (Gap) projected for FY 2025-26 by PGVCL:
Table 2-5: Revenue (Gap)/Surplus for FY 2025-26 (Rs. Crore)
Sr. 2025-26
Particulars
No. (Projected)
1 Aggregate Revenue Requirement 27,396.56
2 Less: Revenue (Gap)/ Surplus from True up of FY 2023-24 493.22
3 Total Aggregate Revenue Requirement 26,903.34
4 Revenue with Existing Tariff 16,881.15
5 Revenue from FPPPA Charges 11,013.38
6 Other Income (Consumer related) 380.87
7 Agriculture Subsidy 450.64
8 Total Revenue including subsidy (4 to 7) 28,726.04
9 Revenue (Gap) / Surplus (8 - 3) 1,822.70

2.7 Proposed Changes in the Tariff Structure for FY 2025-26

PGVCL submitted that the consolidated resultant Revenue (Gap)/Surplus for all four distribution
companies is around 7.5% of the total revenue at existing tariff. The revenue surplus is primarily
on account of efficient Power Purchase and efficient operations by the DISCOMs. Considering the
rise in fuel and other costs, DISCOM envisages rise in costs which the DISCOM is envisages to
meet through its efficiency gains.

Gujarat Electricity Regulatory Commission Page 31

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

DISCOM is also proposing a change in the tariff for various categories of consumers along with
minor modifications in the existing tariff structure.

A. Introduction of TOU Discounts for use of Electricity from 11:00 Hrs to 15:00 Hrs.
Envisaging RE power tie-up and promote utilization of RE power it is proposed to offer
concession in energy charge for consumption during 11:00 Hrs to 15:00 Hrs (i.e. 4 hours per
day) to HTP-I & II, HT- EVCS, LTMD, NRGP, and LT-EVCS consumer category.

Accordingly, concession of Rs 0.45/unit for consumption of energy during 11:00 Hrs to 15:00
Hrs is proposed for consumer category of HTP-I & II, HT-EVCS, LTMD, NRGP, and LT-EVCS
effective from 1st April 2025 (and for all LT consumers except AG installing Smart pre-paid
meters).

B. Implementation of Time of Day (ToD) Charges for NRGP, LT Electric Vehicle and HT
Electric Vehicle tariff category
The existing tariff structure provides TOD charges HT Category except agriculture category
tariff. Furthermore, Ministry of Power, GoI in Electricity (Right of Consumer) Amendment
Rules, 2023 vide notification dated 14.06.2023, provides for introduction of Time of Day Tariff
for Commercial and Industrial consumers having contract demand above 10 KW from
01.04.2024. Accordingly, it is proposed to levy charges for NRGP, LT EV and HT EV category
(above 10 kW) in line with HTP-I, HTP-II, HTP-III and LTMD category effective from 1st
April 2025.

C. Introduction of Separate Tariff for Smart Pre-Paid Meter Consumers (Under RDSS)
The Petitioner has submitted that the Commission vide letter dated 06.11.23, referring Ministry
of Power letter dated 25.10.2023, directed DISCOMs to submit the proposal along for charging
lower tariff to consumers with prepaid smart meters in the Tariff Petition of FY 2024-25. In
light of above, the petitioner has proposed to offer a separate tariff which will have energy
charges with a discount of 2% from present energy charges applicable for LT category (except
AG consumer) covered under RDSS scheme proposed for LT category (except AG consumer)
covered under RDSS scheme.

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Paschim Gujarat Vij Company Limited
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D. Concession to the consumers supply at 11 KV and increase in Rebate for supply at 33KV
and above consumers
As per Current Tariff Schedule approved by Commission for FY 2024-25 offers concession for
High Tension Consumers availing supply at EHV Level (33 KV and above). The consumers at
supply level 33/66 KV are getting rebate of 0.75% on Energy Charge and consumers at supply
level 132 KV & above are availing rebate at 1.25% on Energy Charge. Accordingly, it is
proposed to introduce a 1% rebate on energy charges for consumers availing supply at 11 kV
voltage levels. Additionally, the existing rebate for consumers connected at 33 kV and above
(EHV) is proposed to be increased to 2%. This adjustment is aimed at encouraging consumers
to shift to higher voltage systems.

2.8 Request of PGVCL

1. To admit this Petition seeking True up of FY 2023-24, Aggregate Revenue Requirement
for the 4th MYT Control Period from FY 2025-26 to FY 2029-30, and Tariff Proposal for
FY 2025-26.

2. To approve the True up for FY 2023-24 and allow sharing of gains/ (losses) with the
Consumers as per sharing mechanism prescribed in the GERC MYT Regulations, 2016.

3. To allow recovery of Revenue (Gap) / Surplus of FY 2023-24 as part of Tariff

determination for FY 2025-26.

4. To approve Aggregate Revenue Requirement for the 4th MYT Control Period from FY
2025-26 to FY 2029-30 as submitted by the Petitioner.

5. To consider approved True up parameters & ARR of GSECL, GETCO and SLDC while
finalizing Tariff of the Petitioner.

6. To allow recovery of FPPAS on (n+3) month basis for FY 2025-26 and true-up of FPPAS
along with true-up of FY 2025-26.

7. To allow O&M expense, particularly employee cost in a cost reflective manner.

8. Pass suitable orders for implementation of Tariff Proposal for FY 2025-26 for making it

Gujarat Electricity Regulatory Commission Page 33

March 2025
Paschim Gujarat Vij Company Limited
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applicable from 1st April, 2025 onwards.

9. To allow PGVCL to make suitable modifications in the tariff petition, if required, for
approval of recovery of fixed costs through enhanced fixed/demand charges with
proportionate reduction in energy charges for respective consumer categories maintaining
revenue neutrality.

10. To grant any other relief as the Commission may consider appropriate.

11. The Petitioner craves leave of the Commission to allow further submissions, addition and
alteration to this Petition as may be necessary from time to time.

12. Pass any other Order as the Commission may deem fit and appropriate under the
circumstances of the case and in the interest of justice.

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3. Brief outline of objections raised, response from PGVCL and

Commission’s View

3.1 Public Response to the Petition

In response to the Public Notice inviting objections/ suggestions on the Petitions filed by discoms for
Truing up of FY 2023-24 and determination of ARR and Tariff for FY 2025-26 to FY 2029-30 from
the stakeholders, a number of stakeholders filed their objections/suggestions in writing and also
participated in the Public Hearing. Further, some of the objections are general in nature and some are
specific to the proposals submitted by the Petitioner. It is also noted that many of the
objections/suggestions are common to all the four discoms and some are specific to the concerned
discom. The objections/suggestions connected with the current Petition are segregated into two groups,
viz., common to all discoms and specific to the concerned discom. The Commission has addressed the
objections/ suggestions issue-wise rather than objector-wise.

These objections/suggestions, the response from the Petitioner, and the views of the Commission are
dealt with hereunder:

3.2 Suggestions/ Objections common to all DISCOMs

Issue No. 1: Power supply to Farmers

The objector has submitted that the issue of daytime power supply to farmers has yet to be resolved.
The commitment made in the past remains unfulfilled. It was added that, according to the latest
information received, out of 18,000 villages, 16,000 have been covered. The Petitioner should provide
the latest data on power supply.

Response of the Petitioner

The Petitioner submitted that out of total 5332 villages which have AG dominant category, 5005
number of villages covered under day-time power supply. The remaining 327 villages will be covered
soon.

Commission’s View

Gujarat Electricity Regulatory Commission Page 35

March 2025
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The Commission has noted the response of the Petitioner.

Issue No. 2: Quantum, quality and hours of supply to Agriculture consumers

The Objector has submitted that there is a decrease in the quantum of supply to agriculture, where the
supply hours have decreased from 16 to 8 hours and the quality of supply has decreased from 49.03%
to 18%. Also, six State Governments are providing Free Electricity supply to their farmers in their
states to promote & support the farming and irrigation activities, but in GERC/Gujarat Government is
not ready to reduce/abolish extra charges like fixed charges, FPPPA. Electricity Duty etc. Further, the
Industrial Sector is being heavily benefited at the cost of Agriculture Sector.

Response of the Petitioner:

The Petitioner submitted that Minimum Average eight hours power supply has been provided to
agriculture sector. The Petitioner submitted that a policy related to power supply to agriculture sector
has also been formulated by Gujarat Urja Vikas Nigam Ltd as per guidelines from GOG for uniform
power supply to agriculture sector in the state and discoms have been implementing the same by
ensuring minimum average eight hours 3 phase power supply to agricultural sector.

The Petitioner submitted that during cropping seasons as per the requirement in order to save standing
crop, more than 8 hours of power supply is also provided to agriculture sector. In case power supply
to Ag Sector is given less than 8 hours during the day due to technical constraints related issues in that
case the shortfall in power supply of previous day is compensated during the subsequent period. It is
the endeavor of the Distribution Companies to provide the quality power and best possible services
well within the time limits specified in Regulations.

Further with regard to issue of quantum of energy as raised in the response, it submitted that large nos.
of agriculture consumers are un-metered, and energy consumed by such consumer is assessed on the
basis of consumption criteria of 1700 Units/HP/Annum. Earlier the assessment for consumption by
Agriculture consumers were being made based on different methodology involving theoretical loss
level of the feeders, and therefore it is not appropriate to compare with the quantum of energy supplied
to the agriculture consumers. However, as stated above average 8 hours power supply is given to the
agriculture consumers and there is no curtailment in power supply to agricultural sector.

Gujarat Electricity Regulatory Commission Page 36

March 2025
Paschim Gujarat Vij Company Limited
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The Petitioner added that FPPPA rate has been revised to Rs. 2.45 per unit instead of Rs. 2.85 per unit
with effect from 1st January 2025.

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 3: Various statements and information required

The objector sought various information and data relating to defaulter consumer category wise along
with the list of defaulters having outstanding arears more than Rs. 1 Lakh.

Response of the Petitioner:

The Petitioner submitted the details related to defaulter consumer categories, along with a consolidated
list of defaulters having outstanding arrears of up to Rs. 10 lakhs, as follows, and an individual list for
defaulters with arrears of more than Rs. 10 lacs and more than Rs. 1 crore, as of December 31, 2024.

Table 3-1: Consumers under Arrears more than Rs. 1 Lakh and upto 10 Lakh

Nos of
Sr. Consumer Amount (Rs.
Consumers
No. Category In Lacs)
under Arrears
1 HT 251 10667.72

2 LT 8217 18616.43

3 TOTAL 8468 29284.15

Commission’s View
The Commission has noted the response of the Petitioner.
Issue No. 4: Bad Debt Accounts

The objector has submitted that the statement of debt written off to be submitted by the Petitioner. It
added that by debiting B&D provision account with details should be submitted by the Petitioner.

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March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

Response of the Petitioner:

The Petitioner submitted that every Accounting Year, certain amount of some consumers, which
ascertained to be non-recoverable, is waived by the Company and is charged in P&L of the Company
under the head of other debits for the respective year.
Commission’s View
The Commission has noted the response of the Petitioner.

Issue No. 5: Statement of Creditor/Debtor

The Objector has submitted that the Petitioner has not submitted the statement of outstanding creditors
and debtors, which is required to be submitted, specifically categorizing Government and Non-
Government creditors and debtors separately.
Response of the Petitioner:
The Petitioner has submitted the details related consumer category wise statement of debtor.
Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 6: Statement of Pending Application

The objector has submitted the Petitioner should submit details related to statement of Pending
Applications of Agricultural category

Response of the Petitioner:

The Petitioner has submitted the details.
Commission’s View:
The Commission has noted the response of the Petitioner.
Issue No. 7: GoG Rules resolutions Order Notifications Circulars

The objector submitted that the Petitioner should submit all relevant information related to
Government Resolutions, Notifications, policy documents etc. are available on respective State Govt.
department website.

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Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
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Response of the Petitioner:

The Petitioner has submitted all the details are available on its website.
Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 8: The Petitioner submitted that the Petitioner should submit the unmetered Report
on unmetered DTC

Response of the Petitioner:

The Petitioner has submitted the details as provided below:

Sr. Nos. of Meters

Particulars Nos. of Transformers
No. Installed
1 Other than AG 154457 150381
2 AG 1005002 996079
Total 1159459 1146460

Commission’s View:
The Commission has noted the response of the Petitioner.
Issue No. 9: Progress report on Kisan Suryoday Yojna

The Objector has submitted that the Petitioner should submit the statement of progress report, target,
achievements, etc. for Kisan Suryoday Yojana for last three year, Nos. of villages covered, Nos. of Ag.
Feeders covered, Nos. of Ag Connections covered etc. important information as per guidelines of GOG
and GERC.

Response of the Petitioner:

The Petitioner submitted that as on January 2024, 4883 nos. of Villages covering 4525 nos of feeders
and 1024545 nos. of consumers are benefited under Kisan Suryoday Yojna.
Commission’s View:
The Commission has noted the response of the Petitioner.

Gujarat Electricity Regulatory Commission Page 39

March 2025
Paschim Gujarat Vij Company Limited
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Issue No. 10: Statement of Dues to pay or recover from the State/ Central Government
The objector has submitted that the Petitioner has not provided information on the outstanding dues
that are payable to or recoverable from the Central and State Governments.
Response of the Petitioner:
The Petitioner submitted that in normal course, Government dues are paid by the Company diligently
fulfilling its obligation, similarly Government also disburse payments to Company on regular basis.
Commission’s View:
The Commission has noted the response of the Petitioner

Issue No. 11: Statement of un-recoverable debts

The Objector has submitted that statements of un-recoverable debts that may require to be written -
off or waive during the ensuing financial years are required to be submitted.
Response of the Petitioner:
The Petitioner has submitted the Statement of un-recoverable debts

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 12: Overload Feeders

The objector has submitted that statement of Overloaded feeders as bifurcated during the year and to
be bifurcated during the projected year along with incurred and projected capital expenses are required
to be submitted.
Response of the Petitioner:
The Petitioner submitted that loading on any of the feeder is highly dynamic phenomena. However,
feeders having either more length or found to be overloaded on sustained basis are bifurcated on urgent
basis. Nos. of Feeders bifurcated during last three years and proposed to be bifurcated during rest of
the period for the year 2024-25(up to Dec '24) is submitted by the Petitioner.

Commission’s View:
The Commission has noted the response of the Petitioner.

Gujarat Electricity Regulatory Commission Page 40

March 2025
Paschim Gujarat Vij Company Limited
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Issue No. 13: New Sub-Stations

The Objector has submitted that the statement of New sub-stations installed, Commissioned during
last 3 years and projected to be installed during the coming year is required to be submitted.

Response of the Petitioner:

The Petitioner has submitted the details.
Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 14: Claims and Compensation on accident

The Objector has submitted that the statement of nos. of claims received for the accidents of human
beings and cattle along with the amount paid toward them is required to be submitted.

Response of the Petitioner:

The Petitioner has submitted the claims and Compensation given to the deceased/ dependent or owner
of the animal on account of electrocution during the Financial Year FY 2022-23, FY 2023-24 and FY
2024-25 (Upto Dec-24) is submitted by the Petitioner.

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 15: Feeders having Losses more than 10%

The Objector submitted that the Petitioner should submit the details of Feeders having losses more
than 10%.
Response of the Petitioner:
The Petitioner submitted the details of Feeders having losses in the range of 5% to 15% are as under
and statement of Feeders having losses more than 15% for FY 2023-24 as provided below:

Table 3-2: Feeders having losses between 5% to 15%

S. Nos of
Feeder Category
No. Feeders
1 Other than Agri. 955
2 Agri 784

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Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

S. Nos of
Feeder Category
No. Feeders
3 TOTAL 1739
Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 16: Status of Releasing of Connections

The Objector has submitted that the Petitioner needs to submit a statement of agricultural connections
actually released during the last five years, scheme-wise, including targets, achievements, and
shortcomings, along with proper reasons

Response of the Petitioner:

The Petitioner submitted that releasing of new connection is an on-going task. Ag. Connections are
released, every year, under various schemes like, Normal, Tatkal, MIS, DIS etc. It further submitted
the details related to AG connection released during last five years upto December 2024.
Commission’s View
The Commission has noted the response of the Petitioner.

Issue No. 17: No. of Feeders having line length more than 5 km
The Objector has submitted that the Petitioner should provide a statement showing the total number
of feeders, with a breakdown of the different kinds/types, including the number of feeders with a length
of more than 5 km and the corresponding percentage.

Response of the Petitioner:

The Petitioner has submitted the category wise statement of Feeders having feeder length more than 5
km as on 31st December, 2024.
Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 18: Voltage class wise No. of Sub – Stations

The Objector has submitted that the Petitioner should provide a statement showing the total number
of sub-stations, with a breakdown of the different kinds/types, including the number of sub-stations
that serve more than 10 villages and the corresponding percentage.

Gujarat Electricity Regulatory Commission Page 42

March 2025
Paschim Gujarat Vij Company Limited
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Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

Response of the Petitioner:

The Petitioner submitted the details of voltage class wise nos. of Sub-Stations within the Company's
area as provided below:
Table 3-3: No. of Voltage class wise no. of substations

Sr.
Voltage- Class Nos.
No.
1 400 KV 6
2 220 KV 41
3 132 KV 23
4 66 KV 973

The Petitioner added that villages are provided with power supply through 11 kV feeders emanating
from 66 kV Sub-stations. There are 159 nos. of 66 KV Sub. stations, which feeds power supply to
more than 10 villages.
Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 19: Statement of PDC Connections and amount of Arrears

The Objector has submitted that the Petitioner should provide the latest statement of position, including
the number of PDCs (Pending Demand Cases), the amount of arrears (in crores) categorized by
consumer category, with a year-wise breakdown. The statement should reflect the position after taking
into account reconnections and recoveries, and should show the net position as per the latest records.

Response of the Petitioner:

The Petitioner has submitted the details.

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 20: Statement of Application Pending with GGRC

The objector has submitted that the Petitioner has not submitted the statement of pending Ag.
Applications with GGRC for various reasons are required to be submitted. Reasons for such pending
applications not provided by the DISCMs. It is required to be submitted as per break up.

Gujarat Electricity Regulatory Commission Page 43

March 2025
Paschim Gujarat Vij Company Limited
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Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

Response of the Petitioner:

The Petitioner submitted the details.

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 21: Statement of Faulty/ Non-Working Meters

The objector has submitted that the statement of faulty / non-working condition meters required to be
submitted (last 3 years).
Response of the Petitioner:
The Petitioner has submitted the details Faulty meters replaced during last three years as on 31st Jan
2025 is as under:

Table 3-4: Details of faulty meter replaced

Sr.
Year Single Phase Three Phase Total
No.
1 2022-23 74418 47176 121594
2 2023-24 99509 55919 155428
3 2024-25(Pending as on Dec 24) 49214 46958 96172

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 22: Statement of Year wise applications rejected/cancelled

The Objector submitted that statement of year wise Ag. Applications rejected / cancelled (during 3
years) required to be submitted with Nos. of applications and major reasons against them during the
particular years.
Response of the Petitioner:

The Petitioner submitted the Year wise Ag. Applications rejected/cancelled during last three years as
under:

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Table 3-5: Year wise Ag application rejected/cancelled

Sr.
Year No.
No.
1 2021-22 2593
2 2022-23 2483
3 2023-24 2210

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 23: Statement of Rural Electrification work in Rural Areas

The Objector has submitted that the statement of status report mentioning Rural Electrification work
in the rural area i.e. revenue villages, paras, peta paras, muwadas, inhabitants etc. required to be
submitted with work done, Nos. covered, under progress, pending, under pipeline, planned, unplanned,
any other information.

Response of the Petitioner:

The Petitioner submitted that all villages are electrified for a long time. Providing Electricity to Peta
Paras. Muvadas, inhabitants etc. is continuous in nature of work and is carried out on
requirement/demand basis.

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 24: Statement of Category wise Agricultural Connections

The Objector has submitted that the statement of Ag. connections with Al, A2, A3, A4, A5 etc.
classifications is required to be submitted with information.

Response of the Petitioner:

The Petitioner has submitted the details as provided below:

Gujarat Electricity Regulatory Commission Page 45

March 2025
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Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

Table 3-6: Details of Category wise Agricultural connection

S. Numbers (As on
Category of connections
No. Dec 24)

1 Al - Flat Rate connections 253852

2 A2 - Normal Metered Connections 918980
3 A3 - Tatkal Connections 1404
4 A4-Lift Irrigations 68
A5 - Normal Metered connections (Option Scheme) 5281
5

6 Permanently Disconnected Connection 55383

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 25: Supply of water to the Bricks manufacturers

The objector has sought details related to supply of water to the Bricks manufacturers under the head
of Agriculture.
Response of the Petitioner:
The Petitioner submitted that supply to Bricks Manufactures by an Agriculture consumer is an optional
facility and an Ag. consumer can opt for it if they so desires. This is not a compulsory requirement.
Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 26: Statement of cases booked under section 126 & 135 of EA 2003
The objector submitted that statement of Cases booked under Section 135 and under section 126 is
required to be submitted.
Response of the Petitioner:
The Petitioner submitted the details of theft cases booked under section 126 & section 135.

Commission’s View:
The Commission has noted the response of the Petitioner.

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Issue No. 27: CGRF Statements:

The objector has submitted that the details of statement of working of Consumer Grievances Redressal
Forum (CGRF) is required to be submitted.

Response of the Petitioner:

The Petitioner submitted that at present, there is 4 nos. Consumers Grievance Redressal Forum
(CGRF). However, as per CGRF Regulations (First Amendment), 2023, the formation to set up CGRF
at each circle level and 1 at corporate level is under progress.
Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 28: Segregation of total loans

The objector submitted that the statement of segregation of total Loans is required to be submitted.
Response of the Petitioner:
The Petitioner submitted that its Average Revenue Requirement (ARR) and Tariff Determination
Petition has been filed under the Multi-Year Tariff (MYT) Regulations, 2024, and other relevant
provisions of the Act, wherein the relevant details of loans are provided.
Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 29: Statement of PDC-RC work

The objector submitted that the statement of PDC-RC work is to be submitted.

Response of the Petitioner:

The Petitioner submitted that during FY 2024-25 (as on Dec 24), 0 number of PDC connections are
reconnected.
Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 30: Shifting of Work

The objector submitted that the details related to shifting of work to be submitted.

Gujarat Electricity Regulatory Commission Page 47

March 2025
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Response of the Petitioner:

The Petitioner submitted that during FY 2024-25 (as on Dec 24), 462 number of connections were
shifted.

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 31: Statement of Performance of PM Kusum Scheme

The objector has submitted that the Petitioner should submit the details related to performance of PM
Kusum Scheme.

Response of the Petitioner:

The Petitioner submitted the details related to PM Kusum Scheme (Component A, B, C) .

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 32: Statement of Calculation of FPPPA

The objector submitted that statement of FPPPA charges to be mentioned separately having calculation
of component as under of last 3 years.
Response of the Petitioner:
The Petitioner submitted that the detailed computation of FPPPA charges worked out on quarterly
basis. Details for last two years are available on GUVNL Website, wurw.guvnl.com.

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 33: Progress of other Schemes

The Objector submitted that the Petitioner should submit the performance of other schemes such as
SKY, Rural Electrification scheme, Solar Rooftop scheme.

Response of the Petitioner:

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The Petitioner submitted the details of the scheme as provided below:

• Under Rooftop solar scheme, 283602 nos. of consumers have installed solar systems on their roof
within company's area.
• 314 Nos. of connections have been released under the provisions of 2 Ag. Connections in one revenue
survey number
• 21366 Nos. consumers have availed the benefit of allowing 2 motors through 1 Agriculture connection.
Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 34: Statement of Circle wise Distribution Losses

The objector submitted that the statement of distribution losses % as per kinds of feeders required to
be submitted. It added that last three years statement of information regarding specific categories such
as Tatkal scheme, HT Lift Irrigation and HT Lift Irrigation need to be submitted. The objector further
submitted that distribution loss of four distribution loss are 7.82% which is lower than approved value.

Response of the Petitioner:

The Petitioner submitted the circle wise distribution loss as provided below:
Table 3-7: Details of circle wise distribution loss as submitted by the Petitioner

S. % Distribution Loss
Name of Circle
No. 2021-22 2022-23 2023-24
1 Rajkot City 7.16 7.70 6.89
2 Rajkot O&M 10.20 11.29 10.56
3 Morbi 8.11 9.02 6.40
4 Porbandar 19.10 20.08 20.27
5 Jamnagar 26.58 28.04 25.72
6 Junagadh 12.75 14.07 12.92
7 Bhuj 17.05 16.51 14.93
8 Anjar 19.98 19.27 17.07
9 Bhavnagar 12.05 13.17 14.08
10 Botad 19.27 22.03 21.05
11 Amreli 15.40 18.51 18.21
12 Surendra Nagar 27.92 27.60 23.09

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Commission’s View:

The Commission has noted the response of the Petitioner.

Issue No. 35: Power Purchase from Exchanges
The Objector has submitted the Petitioner is required to submit the details of Power Purchase from
Electricity exchange either purchased by GUVNL or directly by the discoms. The Petitioner submitted
that it can be ascertained that it is 12% and it is on higher side as per guidelines of the Commission. It
should remain the cap of 5% only.

Response of the Petitioner:

The Petitioner submitted the month wise details of power purchase from energy exchange as provided
below:
Table 3-8: Power Purchase from Exchange (MU)

Month FY 2020-21 FY 2021-22 FY 2022-23

April 1065 93 1023
May 982 253 635
June 752 350 227
July 837 390 238
August 2689 251 409
September 2278 547 392
October 1942 1278 325
November 818 1454 372
December 392 937 356
January 704 942 402
February 1350 1226 521
March 839 1597 688
Total 14647 9319 5588

Commission’s View:
The Commission has noted the response of the Petitioner.

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Issue No. 36: Statement of Billing Amount vis Collection Efficiency

The Objector has submitted the Petitioner should submit the details related to billing efficiency,
collection efficiency.
Response of the Petitioner:
The Petitioner has submitted the details for FY 2023-24 as provided below:

Particular Amount
Billing Amount (Rs. Lakh) 27812.09

Collection Amount (Rs. Lakh) 27568.43

Collection Efficiency 99.12%

Further details related to category wise assessment and arrears are submitted by the Petitioner.
Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 37: Objection to include animal husbandry category in RGP categories

The objector has submitted strong objection to include animal husbandry category in RGP categories.

Response of the Petitioner:

The Petitioner has submitted that the Commission vide Order dated 15.02.2024 in Petition No.
2275/2023 after considering the suggestions / comments from stakeholders has decided the matter. In
terms of the Commission Order, discoms shall include animal husbandry connections to RGP category
and treatment will be given accordingly.

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 38: No of Consumers opted Green Tariff Category

The Objector has submitted that the Petitioner should provide details related to consumers who have
opted for the Green Tariff category

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Response of the Petitioner:

The Petitioner submitted that the Commission vide its Tariff Order dated 31.03.23 have introduced
Green Power Tariff Category. As on Dec-24 there are 10 no. consumers availing Green Power Tariff.

Commission’s View:
The Commission has noted the response of the Petitioner.
Issue No. 39: Issues raised for all Agricultural categories
1. Fixed charges to be totally removed from all the four Ag. Categories. Single and Uniform Energy
Charges to be introduced in all the four metered categories i.e. Normal; Tatkal, Ag. LT Lift irrigation,
HT Lift irrigation connections.
Discrimination of tariff rate for Normal-60 paisa per unit and for others-80 paisa per unit required to
be removed and make them uniform.
2. To abolish Takal scheme immediately & forever.
3. To be introduced a new Non Subsidized category exempting certain class/kinds of peoples so called
farmers, so that GoG’s subsidy will be made available to the real, poor and needy farmers.
4. To be introduced BTR-Basic Tariff Rate, ATR-Additional Tariff Rate, Scheme and formula thereon
5. For Tariff category HTP-V & Now LTP-Lift irrigations scheme, certain clarification required
a) About load 125 BHP for LTP and 100 KVA for HTP-V. It should be made common & matching
b) Certain words needed to be added for surface water facilities and lifting the water from Lake, Tank,
Ponds, Houze, sump, cistern, underground tank etc. prepared in the own farm for water collection
savings, check dams etc.
On 17/11/2023 EPD GoG has taken as specific decision to add 8 more purposes for such kinds of
surface water based irrigation purposes. It should be considered specifically and the words to be added
in the Tariff Order
6. Effect of settlement between BKS and GoG not appeared in the captioned tariff proposals
(a) Reduction of fix charges in various Ag Categories
(b) Formation of New category for animal Husbandry / Herding.
7. High number of loss making feeder are found.

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8. In the Petition 912/2007 we had submitted 30 nos. of points of our grievances pertaining to the
Farm Sector & Rural Area. After long period only few of them have been justified and satisfied.
Anti-farmers system is being developed knowingly
9. There is vast expenditure and difference in per KVA reparing cost of transformers within Discoms.
Hence O&M expenses remain uncontrolled, without justification and the amount claimed in ARR
is not reasonable.
10. About 54 thousand of Ag. Applications are still pending of which in PGVCL such applications are
pending since year 2020. It should be reviewed separately and specific order to be passed by the
Commission.

Response of the Petitioner

Reduction in HP Based Tariff
The Petitioner submitted that National Tariff Policy mentions the need to have a rationalization of tariff
to various consumer categories such that it is more aligned to the cost of supply in the band of ± 20 %
to the average cost of supply.

In order to ensure uniform tariff rates for four state owned Distribution Companies, differential bulk
supply tariff mechanism is in place. The Petitioner has submitted the avg realization from all category
consumers for FY 2023-24 at proposed Tariff vis a vis Avg cost of supply for all the companies is as
under:

Table 3-9: Average Cost (Rs./kwh) vs Avg cost of supply (Rs./kwh)

Average Cost Average Realization % Recovery of

Particular
(Rs./kWh) (Rs./kWh) Average cost
Low Tension
RGP 8.56 6.96 81%
GLP 7.52 7.42 99%
Non-RGP & LTMD 7.24 8.62 119%

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Average Cost Average Realization % Recovery of

Particular
(Rs./kWh) (Rs./kWh) Average cost
Public Water works & 6.21 7.48 120%
Sewerage Pumps
(PWW)
Irrigational 7.59 5.02 66%
Agricultural
High Tension
Industrial High 6.52 8.50 130%
Voltage (Ind .HT)
Industrial High - - -
Voltage (Ind .EHT)
Railway Traction 6.54 8.69 133%
Total 7.13 7.56 106%

From above it can be visualized that average recovery from agriculture category consumers is much
less than average cost of supply.

As regards to abolition of Fixed Charges, the Petitioner submitted that it is a basic commercial principle
for any organization to recover its fixed costs through recovery of fixed charges. In case of discoms
even with the proposed tariff, there will be partial recovery from fixed / demand charges from
consumers as against the actual fixed cost payment by discoms. Therefore, it is not possible for
discoms to abolish fixed charges, however significant component of fixed charge is being born by
State Government as a subsidy support to agriculture consumers.

Special sub category for AG Consumers

Present Tariff of agricultural is highly subsidized and hence further categorization is not appropriate.
Concessional tariff to the micro-irrigation system

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Irrigation to agricultural field through micro/ drip irrigation system requires less energy consumption
compared with normal mode of irrigation. Thus such agriculture consumers are automatically
benefited. Giving benefit to one class of consumer will result into increase in tariff of other class of
consumers.

Abolition of Tatkal Scheme

Petition was filed by the respondent in regards to above issues vide no. 1087/2011. The Commission
has issued the Order and disposed of Petition.
HTP-IV and LTP-Lift irrigation scheme
GoG vide GR dated 16.11.2023 has approved for inclusion of following sources namely, River, creek,
canal, Dam, lake, ravine, Narmada scheme pipeline tank for individual agriculture connection in
agricultural land. Further, as regards to matching the load for LT and HT voltage level, it is to submit
that Electricity Supply Code provides for LT connections up to 100 KW and HT connection beyond
100 KVA demand.

Commission’s View:
The Commission has noted the response of the Petitioner.
Issue No. 40: FPPPA to be allowed only once in Financial Year
The objector has sought not to allow any interim extra charges by the way of FPPPA in between the
year. However, if any increase required, is allowable once in a FY only.

Response of the Petitioner:

The Petitioner submitted that the FPPPA charges are towards adjustment due to increase or decrease
in actual power purchase cost during the year vis-a-vis power purchase cost approved by the
Commission. Since, FPPPA is an adjustment charge towards variation in power purchase cost due to
various uncontrollable factors, it may increase or decrease based on variation in actual power purchase
cost.

It is further to mention that the Commission has approved the methodology for computation of FPPPA
charges wherein GUVNL/DISCOMs is submitting computation as per the methodology and approved
formula before the GERC and are collecting FPPPA charges from consumers, after approval of the

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Commission. Moreover, in past periods wherein the worked out FPPPA was on higher side on account
of steep rise in landed cost of generation, discoms had levied FPPPA charge at lower rate as compare
to the actual FPPPA worked out to avoid sudden tariff shock to consumers.

Moreover, in case of lower FPPPA, discoms has appropriately reduced the FPPPA rate to be recovered
from consumer to pass on the benefit of the same to consumer. It is also pertinent to mention that
benefit to consumers was passed on during Q4 FY 23-24 by way of reduction of Rs 0.50/ Unit in
FPPPA.

Additionally to economize the overall power purchase cost, discoms are procuring power from RE
sources such as wind, solar etc. at cheaper rate and also procuring power from the power exchanges
whenever available at cheaper rate as compared to higher marginal stations as per the prevailing
demand supply scenario.

Accordingly, discom through various measures are trying to economize the overall power purchase
cost in the interest of general body consumers and to provide quality power supply in the State.

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 41: No allocation of supply to non-productive activities

The objector has sought restriction over day and night cricket matches and other nonproductive
activities, until pending list of Agriculture Connections totally fulfilled. No action of earning cheap
popularities to be allowed by the Commission and not to allocate more Electricity to such non-
productive purpose activities under any kind of categories because during previous years discoms had
to purchase electricity at the rate of Rs. 12 to 20 per unit form open market i.e. from Electricity
Exchange.

Response of the Petitioner:

The Petitioner submitted that as per Section 43 of Electricity Act, 2003 the local distribution licensee
is having Universal Supply Obligation to provide electricity upon application made by consumer.

Commission’s View:

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The Commission has noted the response of the Petitioner.

Issue No. 42: Transmission and Distribution Loss

The objector has sought restriction of distribution loss to 7% and transmission loss to 1%. The objector
added that the overall distribution loss of four discoms remained at 7.82% which is lower than
approved overall distribution loss of 9.10%. The objector added that PGVCL is not improving its
performance since many years and no improvement is noted in year-to-year performance. The T&D
losses are 15.15 %, 0.6 % less than the approved loss of 15.75 % by GERC for year 2023-24.Though
the losses are reduced than the level specified by the Commission who showed a generosity of reducing
the level from 16 % to 15.75 % in a year, the PGVCL Losses is more than 5 % to all other distribution
Companies of the state indicating high power theft in area of PGVCL. No special efforts are ever put
up by PGVCL authorities to curb this practice.

Response of the Petitioner:

For the year FY 2023-24, Distribution loss level was 15.15% as against approved 15.75 %. Distribution
losses being controllable factor, the Petitioner has given appropriate treatment to the deviation from
approved loss level in the True up Petition for FY 2023-24.

Since Transmission losses are beyond the control of Distribution Company, the actual transmission
losses are considered by the Petitioner.

The Petitioner has achieved a significant reduction in distribution losses, during recent years. These
efforts should be continued and will be enhanced. However, loss reduction is a slow process and
becomes increasingly difficult as the loss levels goes further down. The Petitioner submitted that
distribution loss of agriculture category is highly influenced by the amount and spells of rainfall etc.
However with continuous efforts and expeditious release of new connections, the loss of agricultural
category

Further, Company required to focus all its resources on the activities related to restoration of the
network and resumption of power supply to the consumers, therefore, many of the activities could not
be performed.

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The Petitioner submitted that it takes various steps, narrated as under, for reduction of distribution loss.
It added that makes all efforts for reduction of distribution losses endeavors to achieve the loss
reduction trajectory as approved by the Commission.

Technical Loss reduction Activities are planned as under:

a) Proper maintenance & replacement of conductor & cables with proper size.
b) Providing amorphous transformers & balancing load on each phase along with bringing
transformer in load center.
c) Bifurcating all required feeders
d) Minimize all joints in lines etc. by proper maintenance.
e) Releasing of most of the new AG connections with HVDS to reduce LT line losses.
Commercial Loss reduction Activities are planned as under:

a) Vigilance activities and regular checking drives to curb the power theft.
b) Providing Arial bunch conductor/ insulated conductor/XLPE cable & armored services to
eliminate power theft by direct hooking.
c) Replacing services having joints, provide meters outside the entrance of premises.
d) Replacing electromechanical meters by static meters.
e) Replacing all faulty/burnt meters & making all installation pilferage proof.

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 43: Power purchase ceiling to be defined

The objector has sought a ceiling during the year for power purchase rate to be decide along with tariff
award.

Response of the Petitioner

The Petitioner has not submitted any response.

Commission’s View

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The Commission has noted the suggestion and has dealt with the issue in the respective section of the
Tariff Order.

Issue No. 44: Interest on working capital and Return on Equity

The objector has sought removal of Interest on working capital and reduction of rate of RoE to 10%.
Response of the Petitioner:
In true up Petition for FY 2023-24, Petitioner has not claim any Interest on working capital is proposed.
Further, as regard to Return on Equity, For FY 2023-24, ROE is worked out as per MYT Regulations,
2016, whereas for FY 2025-26 and onward the projection is made considering the MYT Regulations,
2024.

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.

Issue No. 47: Power purchase projection

The objector has stated that projection of power purchase cost is too high and unrealistic. Merit list not
being implemented and monitored.

Response of the Petitioner:

The Petitioner submitted that GUVNL on behalf of four Distribution Companies submits various
sources of power purchase comprising of Thermal, Gas, Renewable sources of power - Solar, Wind
and Other RE Sources, and Power tied up through competitive bidding, etc.

Further, to optimize overall power purchase cost, purchase of power from various sources on real time
basis is done following the merit order principle wherein power from various sources is scheduled in
the ascending order of variable cost i.e. power from cheaper sources is scheduled first and thereafter
costlier power till the demand of consumer is met on real time basis. The Petitioner has submitted
necessary details of all power purchase sources in the Petition and projection is done considering the
principles/methodology laid down in the MYT Regulations, 2024.

Commission’s View:

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The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.

Issue No. 48: Reduction of Technical Loss

The objector has submitted that to reduce technical losses, sincere efforts are not being done at the
substation and feeder level. There is not sufficient staff for the work. The Objector has submitted that
Transmission losses are more than 3% since long time and are not acceptable now after 20 years(2005-
2025). It should be limited to 1%.

Response of the Petitioner:

The Petitioner has not submitted any response to the objection.

Commission’s View:
The Commission has noted the suggestion and has dealt with the issue in the respective section of the
Tariff Order.

Issue No. 49: Abolishing fixed charges of residential consumer and AG consumers

The objector has sought the fixed charges on Residential categories and agricultural consumers to be
abolished totally. The objector submitted that the effect of GoG’s decision to reduce partially the fixed
charges on metered Agriculture connections are not included in the tariff proposal for FY 2025-26.

Response of the Petitioner

As regard to the fixed charges, it is to submit that Petitioner incurs substantial "fixed costs" in
maintaining the power supply to consumers apart from the energy/ variable charges it pays for the
energy bought. These fixed costs include fixed charges paid to power plants, recurring costs of capital
expenditure such as interest costs, depredation and other O&M expenses etc. Further, only part of
actual fixed cost paid is recovered through fixed charges. Therefore, it is not possible for discoms to
abolish fixed charges.

Further, as regard to FPPPA, it is to submit that, in this regards, it is submitted that as per the provisions
of National Tariff Policy, any increase in the Power Purchase cost vis-å-vis power purchase cost
approved by the Commission in the discom's ARR/MYT Petition, is to be recovered from consumers

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through FPPPA charges on quarterly basis. The Power Purchase cost for FY 2023-24 was approved by
the Commission in the Order dated 31.03.2023 based on actual power purchase cost of past years.

Since then, there has been variation in power purchase cost during FY 2023, 24 on account of
uncontrollable factors such as variation in fuel cost / power purchase rate and change in generation
mix etc. The FPPPA for FY 2023-24 is based on the actual power purchase expenditure incurred and
reflects increase in power purchase cost over the base year power purchase cost. Further, the
computation of FPPPA charges is carried out as per the formula approved by the Commission in the
Order dated 29.10.2013, Accordingly, any increase / decrease is computed considering the approved
methodology and same is recovered / pass through to the consumers.

Further with regards to GoG’s decision, the Petitioner submitted that tariff /ARR proposals for FY
2025-26 has been prepared as per norms provided in the Multi Year Tariff (MYT) framework. As per
the MYT framework, the Commission determines category wise tariff without considering subsidy
provided by the state government in the tariff of particular category consumers, government
compensates the discoms towards through differential tariff through subsidy support. Therefore
subsidy support from state government is accounted under revenue for sale of power which included
recovery from consumers as well as subsidy from state government.

Commission’s View

The Commission has noted the response of the Petitioner.

Issue No. 50: Distribution Transformer failure rate

The objector has stated that transformer failure rate should not exceed beyond 3% under normal
circumstances, except natural calamities.

Response of the Petitioner

Distribution transformer failure rate for the Company for FY 2023-24 is 10.80%.

Commission’s View

The Commission has noted the response of the Petitioner.

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Issue No. 51: Claiming depreciation benefit twice

(a) The objector has stated that discoms are claiming the depreciation amount in both the ways (a) ln
books of account on expenses side and taking tax benefit as per taxation laws
(b) Simultaneously they are entering and claiming the same amount in ARR for the purpose of tariff
determination and for the coming F.Y. Thus they are taking double benefit of the system. Hence
same amount to be excluded from approved component of ARR.
Response of the Petitioner

The Petitioner has not submitted any response.

Commission’s View

The depreciation expenses are approved after prudence check, in accordance with relevant provisions
of the GERC (MYT) Regulations, 2016, as detailed in relevant section of this Tariff Order.

Issue No. 52: Consumer charter

The objector has stated that Adhikar Patra related to the farmers is partial. There is no provision of
maximum waiting period after registration of Ag. Application

Response of the Petitioner

Consumer Charter is prepared for all categories of consumers including agricultural consumers.
Commission’s View

The Commission has noted the response of the Petitioner.

Issue No. 53: Matters relating to State Government

The objector has raised following matters relating to State Government:

a) GoG had since not provided sufficient Relief to Agriculture Consumers except subsidy to discoms
b) Percentage of subsidy for micro irrigation scheme by GoG in old 57 Dark zone Taluka is required
to be raised up to 90%.

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c) Our demand to establish a separate Gujarat Rural Area Vij Company to justify the thirst and need
for farm sector and rural area, its subsidiary for Agro. Irrigation Ele. Connections since not
considered.
d) Our demand to establish a separate Feeders Management Company is very much required to
control the High Loss making feeders had been ignored.
e) Concerned Officers of Energy Dept. & Finance Dept. of GoG are required to be call on during the
hearing to submit the authorized information, policy decisions and clarifications if any they have
taken in the related matters
f) About their Policy decisions, Administrative decision, Resolutions. Orders, Circulars, Budgetary
Provisions, Schemes, Subsidies and other such related matters that may effect to the subject
matters of the case, to be produced before the Commission during course of hearing. To clarify
the situation
Response of the Petitioner

The Petitioner has not submitted any response.

Commission’s View

The present regulatory process relates to the Truing up and Tariff Petition filed by the discoms. The
issues raised are a separate matter and need to be taken up directly with the state government.

Issue No. 54: Facility of Bill collection through Mobile Van

The Objector has submitted that certain Directive are still not Fulfilled. i.e.
(a) Mobile van facility for bill collection in rural area.
(b) Separate windows for Senior citizens, women and physically disable person.
(c) Separate window for cash and non-cash transactions.
Response of the Petitioner:
The Petitioner submitted that besides bill collection at Sub-Division offices facilities for payment of
bills in rural areas are available as under:

• E-gram
• Collection through banks/ agencies

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• Village cash collection by cashier etc.

• Different modes for "Online" payment and payment through "App"

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.

Issue No. 55: GUVNL trading margin to be reduced

The objector submitted that the Trading Charge being loaded on consumer via discoms at 4 paisa per
unit, to be reduced to 1 paisa per unit. Because Nos. of consumers as well as sale of electricity in Mus
has been increased in many fold. (GUVNL earned a profit after tax of Rs 1518 Crore for the FY 2023-
24).
Response of the Petitioner:
The Petitioner submitted that pursuant to restructuring of the erstwhile Gujarat Electricity Board, the
function of bulk purchase of power on behalf of four discoms is carried out by GUVNL. Though
GUVNL is entitled to claim Rs. 0.04/ Unit trading margin, GUVNL has instead of claiming any trading
margin over and above power purchase cost incurred by it on behalf of subsidiary discoms, it has
allocated less power purchase cost to the discoms. The power purchase cost for discoms as per books
of GUVNL is Rs. 69963 Crores against which actual cost allocated to discoms for FY 2023-24 is Rs.
68074 Crores i.e. lesser amount instead of recovering any amount of trading margin from discoms. In
addition to this, GUVNL's profit of around Rs. 85 Crores is also allocated to discoms.

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in relevant section
of the Tariff Order.

Issue No. 56: Policy, Guidelines, circular etc to be submitted

The objector has sought that copy of all the policy decisions guidelines and circulars issued related
and affecting the consumers are required to be submitted of last three years.

Response of the Petitioner:

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The Petitioner submitted that as per provisions of Electricity Act, 2003, the activities related to
distribution and supply of electricity is governed as per the provisions of Order/ Regulations / code
standard published by the Commission from time to time. The guidelines, circulars issued by GUVNL,
if any are merely intended for internal use only for providing guideline to the field offices for uniform
implementation of Order/ Regulations / code standard published by the Commission. The copy of
Order/ Regulations / code standard published by the Commission are available in public domain.
Similarly, any communications to field offices which impacts general consumers such as change in
FPPPA rate etc. are also available on GUVNL / Discoms website.
Commission’s View:
The Commission has noted the response of the Petitioner.
Issue No. 57: Information related to PPA

The objector has submitted that the Information related to Power Purchase Agreement for Purchase of
power from Different Sources under Short Term and Long-Term Power Purchase Agreement are not
available to the Consumers and Consumer Organizations.

Response of the Petitioner:

The Petitioner submitted that all the generating stations from which Company/GUVNL is purchasing
power, the cost for the same is determined / approved by the appropriate Commissions like cost of
power purchase from GSECL stations is determined by the Commission, IPPS are governed by the
provisions of PPAs, for central generating stations the tariff is either determined by the Central
Electricity Regulatory Commission or Department of Atomic Energy in case of Nuclear Power Plant
and in case of Competitive Bidding, the tariff is adopted by the GERC. The tariff for renewable sources
is also determined by the CERC or determined through competitive bidding process. Therefore, the
tariff for entire power purchased by Company/GUVNL is determined/ approved by the appropriate
Commission. In real time power procurement following merit order dispatch principles.

Thus, all relevant information related to power purchase agreement are made available in public
domain from time to time as a part of tariff determination / tariff adoption proceedings before the
GERC / CERC.

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Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.

Issue No. 58: Demand for establishing new administrative offices

The objector has stated that as per state Government Budget, 9 new Mahanagar palikas will be formed
hence 9 new Circle offices are required to be established. For that planning should be made well in
advance accordingly. The objector has further submitted that a full flanged circle office is required for
Navsari and Vapi for newly created Mahanagar area.

Response of the Petitioner:

The Petitioner submitted that administrative offices are created for the convenience of administration
for the Company as well as consumers. Accordingly, company shall undertake creation of new offices
as per the requirements.

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 59: Provisions in Power Purchase Cost

The Objector has submitted that for the year 2023-24, a new provision of Rs. 1224.19 Cr. has been
made towards power purchase-related liabilities to various generators. Such an amount should not be
allowed, and its allocation should be removed to pass on the discoms. It will be indirectly passed on
to the consumers, as they are not liable for any kind of contract with generation companies, and any
deviation that may arise is the responsibility of the purchasing company, such as GUVNL.

Response of the Petitioner

The Petitioner submitted that the annual accounts are prepared on accrual basis as per the Indian
Accounting Standards (IND-AS) which includes undischarged liabilities / provisions on account of
matters pending in various courts and estimated as per the Orders of competent courts / best assessment
basis.

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It is to mention that the amount of provision made in the Books of Accounts are excluded in the power
purchase cost considered in the Tariff Petition filed by Petitioner for respective year and the same is
not passed on to the consumers. Only upon actual realization of such expense, pursuant to settlement
before various forums/authorities the same is being considered as an expense in Tariff Petition.

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 60: Statement of Specific categories of Ag. Connections

The Objector has submitted that statement of specific agricultural categories such as Tatkal-A3, LT-
Lift IrrigationA4 and HT-Lift Irrigation HTP-5 are to be submitted by the Petitioner.

Response of the Petitioner

The Petitioner has submitted the required details.

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 61: Separate Tariff for Each Discom

The objector has submitted that there should be separate tariff for each discom.
Response of the Petitioner
The Petitioner submitted that the uniform retail supply tariff structure for all four discoms (Unbundled
entities of erstwhile GEB) has been implemented so that consumer in the similar categories in the State
could have similar tariff and there may not be any discrimination in the consumers, merely because
such consumers are placed at different geographical locations and having different socio-economic
conditions, which is also the objective of EA 2003.

The four Distribution Companies are incorporated on the basis of zonal configuration. It is submitted
that since the 80%- 90% of the total cost incurred by Discoms is for Power Purchase, the same plays
a major role in determining the Annual Revenue Requirement as well as Gap/(Surplus) for the discom
for a particular year. Since, the consumer profile and consumption profiles are different in the four
Distribution Companies; the revenue earning capabilities of each of the discoms differs resulting in

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different Annual Revenue Requirement. Therefore, it is necessary to build a mechanism in the

projections to bring them to a level playing field. This is proposed to be achieved by differential Bulk
Supply tariff (BST) to each of the discoms which is approved by the Commission in the MYT Order.
In this way, it becomes possible to ensure uniform retail consumer tariffs in the four discoms.

Moreover, performance of all the Distribution Companies is monitored by the Commission and
accordingly Distributions Loss is approved by the Commission and any variation in the losses is dealt
in accordance with principles of MYT Regulations.

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 62: Revision of Tariff Slabs for Residential Category

The Objector has submitted that there should be a revision in the tariff slabs, and the current slab of
250 units should be increased to 400 units for residential consumers.

Response of the Petitioner

The Petitioner submitted that it has not proposed any change in Residential Tariff slabs for FY 2025-
26. Further, the Commission vide Order 01.06.2024 has directed for rationalization in the tariff
structure.

As regard to additional higher slab, as a part of tariff rationalization and simplification, in case of State
owned discoms, the number of tariff categories has been reduced considerably,

Moreover, in other States, Tariff structure is designed keeping in mind the different social, economic,
technical, and demographic and other relevant parameters. In our state, the Commission has been
reviewing the Tariff structure and rationalizing the tariff, However, any change in the tariff structure
may be revenue neutral.

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No 63: Merger of FPPPA in Tariff

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The objector has submitted that 50% FPPPA Charges should be merged with in tariff. The objector
further requested to freeze FPPPA charges of Rs. 2.45 per unit for FY 2025-26 separately in addition
to base tariff determined by the Commission. The objector submitted that it is a common practice in
respect of other States that the existing FPPPA is merged in the tariff and only incremental power
purchase after determination of tariff is recovered through tariff.

Response of the Petitioner

The Petitioner submitted that the basic nature of FPPPA/PPPA is 'adjustment' related to power purchase
cost i.e. pass through of increase or decrease, as the case may be, in the power purchase cost over the
base power purchase cost. The FPPPA charge is being levied on the consumer categories on account
of the change in the cost of power purchase, which comprises around 85% of the Distribution
Licensee's Aggregate Revenue Requirement. Any expense pertaining to the regulated business of the
Distribution Licensee has to be recovered from consumers in some manner; therefore, the PPPA
charges are recovered in the form of an incremental energy charge (Rs/kwh) recovered as per formulae
approved by the Commission and as per directive of the Commission.

Further, it is to mention that Electricity Act as well as National Tariff Policy provides that Appropriate
Commission, while determining tariff, shall not only ensure safeguarding of consumer's interests but
also the recovery of the cost of electricity in a reasonable manner. Moreover, Section 62 of the Act
further provides for periodic tariff adjustment during a year to take care of the variation in fuel price.

Commission’s View:
The Commission has noted the response of the Petitioner.

3.3 Matters related to MGVCL

Issue No. 64: Discrimination in HT & LT EV tariff to be removed
The objector has raised that discrimination in Energy Charges of LT Electric Vehicle (EV) charging
stations and HT Electric Vehicle (EV) charging stations to be removed and make them uniform.
However if the Commission desire to allow some concession, it is to be granted for rural area stations
to promote the activities of charging as nearby as possible.

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Response of the Petitioner:

As regard to applicability of Tariff for EV charging Stations, the Commission has determined the
separate tariff for LT-EVCS and HT-EVCS category which is already concessional tariff in comparison
with corresponding other LT/HT consumer category (i.e. NRGP/LTMD or HTP-I).

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 65: Delayed payment charges

The Objector submitted that payment period for Electricity Bill for the senior citizens to be extended
from 10 to 15 days, looking to their various kind of difficulties and prevent them from delayed payment
charges. Further, payment charges for Ag. Category and Residential category to be reduced from 12
& 15 % p.a. to 9% p.a. because interest rate on bank deposits and other rate reduced during last so
many years.

Response of the Petitioner:

It is not possible for a Distribution Company to discriminate Grace Period for payment of billing
related charges based of as to whether a consumer is senior citizen or not. Moreover, it is not desirable
to change at this juncture when discoms are moving from Post Paid regime to Pre-payment regime.

Delayed Payment Charges are levied if consumers do not pay the energy bills within given grace period
provided, thus it is a sort of penalty charges. Thus, Penalty charges should always be higher than the
normal rate of interest and it will not be appropriate to revise the DPC.

Commission’s View

The Commission has noted the response of the Petitioner.

Issue No. 66: Reduction in time period for conversion from Ag. Tatkal to Normal

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The Objector has sought conversion period of Ag. Tatkal category of connection to be reduced from 5
years to 2 years in to the normal category.

Response of the Petitioner:

Tatkal category is an optional category, whereby applicant consumer chose to get the connection quite
early compared with the applicant consumer registered on same date for getting new Agriculture
connection by paying all related charges including tariff. Since, such Agriculture consumers chose the
Tatkal category, naturally he should pay such charges for significant time. Therefore, it is not advisable
to reduce the years for Tatkal category for conversion from Tatkal to Normal.

Commission’s View

The Commission has noted the response of the Petitioner.

Issue No. 67: Review the Green Energy Tariff for DISCOMs
The objector has submitted that the green energy tariff is required to be reduced from 100 paisa per
unit to 40 paisa per unit maximum as per realistic ground. The objector submitted the installed RE
capacity has crossed 175 GW and has reached to 220 GW.

Response of the Petitioner:

The Petitioner submitted that in accordance with rules notified by Ministry of Power, Govt. of India,
discoms has submitted the requisite computation before the Commission. Thereafter, GERC vide Tariff
Order dated 31.03.2023 has introduced Green Power Tariff for FY 2023-24 in the tariff schedule.

Further, the Petitioner submitted that the Commission has notified GERC Green Open Access
Regulation, 2024 wherein applicants/ consumers can fulfil their green power requirement through open
access.

Further, the Petitioner submitted that the Green Tariff is an optional tariff and is levied to the consumes
opting for meeting their demand of green energy and payable over and the normal tariff applicable to
the respective category as per Tariff Order. The charges collected from consumers opting Green Tariff
Power are as per Tariff Order issued by the Commission from time to time.

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Commission’s View:
The Commission has noted the response of the Petitioner. The Commission has dealt with the issue in
the respective section of the Tariff Order.

Issue No. 68: Discrepancy in Bank Energy Accounting

The objector submitted that Quantum of Energy Banking for the projects registered as per Gujarat
Electricity Regulatory Commission (Terms and Conditions for Green Energy Electricity Regulatory
Commission (Terms and Conditions for Green Energy Open Access) Regulations, 2024 Open Access)
Regulations, 2024 for all the projects commissioned/ about to be commissioned whose generated
energy are to be consumed by the consumers based in the MGVCL area of operations.

Response of the Petitioner

The Petitioner submitted that 'Banking' for new RE projects is governed as per GERC (Green Energy
Open Access) Regulations 2024. The Present Petition is being filed for determination of Tariff &
Aggregate Revenue Requirement In accordance with principles laid down in MYT Regulations 2024.
Therefore, the issue of Banking is not relevant to the present Tariff Petition.

Commission’s View:

The Commission has noted the response of the Petitioner.

Issue No. 69: Reintroduction of night rebate to all HT consumers
The Objector submitted that the Petitioner used to provide a night rebate to all HT consumers
connected to the discom of Rs. 0.43 (forty-three paise only) per unit for consumption of energy from
MGVCL during the period from 10:00 pm to 6:00 am. Post the GERC Order in Case No. 2318 of
2024, this rebate has been discontinued.

Response of the Petitioner

The Petitioner submitted that, in past conventional sources of generation was having dominant share
in power generation mix of discoms and therefore lower variable charges / night rebate was offered
for consumption during night hours as to support the base Load generating stations coupled with lower
cost of generation. However, there is paradigm shift in generation profile and energy mix of discom
on account of inclusion of RE generation i.e. particularly solar generation.

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Therefore, in the given scenario, the cost of power during certain day hours has reduced with
availability of solar power and the cost of power during night hours has increased on account of
increase in fuel prices along with minimal availability of RE power during night hours. Thus, to align
with the generation profile, optimize the power purchase cost, it is desirable to discontinue night hour
rebate so as to ensure cost reflective tariff and accordingly, the Commission in the Tariff Order for FY
24-25 dated 01.06.2024 has decided the matter.

Further, considering the given scenario, Petitioner has proposed to provide concession for use of
electricity during 11:00 to 15:00 Hours.

Commission’s View:

The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.

Issue No. 70: Overbooking of Sales

The objector has submitted that the Petitioner has done overbooking of sales in Agriculture, hiding
inefficiencies by reporting erroneous Distribution losses. It added that all discoms have not provided
the actual metered and unmetered Agriculture Consumers for FY 2023-24. The objector added that the
sales in the agricultural category is inflated which resulted in the Distribution loss and has helped to
make inefficiency by these companies.

Response of the Petitioner

The Petitioner submitted that it is stated that improper calculation of distribution by booking of sale to
unmetered Agriculture consumers. It is relevant to state that the losses are worked out on the basis of
energy reported by SLDC and accordingly in the Tariff Petition loss is considered based on quantum
of energy purchased and sold for retail supply business.

As regards consumption by metered and unmetered category consumers, it submitted that Energy sale
to Agriculture category consumers is worked out based on:

1. Units recorded in the meter during specified period i.e. in the billing period for metered category
consumers

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2. For the Unmetered category consumers, consumption is assessed based on the consumption norm
of 1700 Units/HP/Annum approved by the GERC.
The Consumption of metered category consumers cannot be compared with the consumption of
unmetered category consumers for following reasons:

1. Nature of Tariff: Obviously, since the consumption is measured and billing is done based on the
total units recorded, consumer, the metered consumers have an incentive in being careful about
their consumption. On the other hand, such incentive is not there for unmetered consumers. It is
common practice of unmetered agriculture consumers to keep their motors on for the entire duration
of power supply. This leads to considerably more consumption in unmetered category agriculture.
2. The consumption of metered and un-metered category for agricultural connections cannot be
compared on account of various reasons. The Consumption differs because in case of metered
consumers, there are instances of under-metering due to theft or malpractice as consumers has to
pay bill as per consumption recorded in meters. Whereas in case of unmetered category, there is no
incentive for energy conservation as bills are issued on the basis of normative consumption
irrespective of actual consumption made by the Consumers.
Commission’s View:

The Commission has noted the response of the Petitioner.

Issue No. 71: No Carrying Cost offered on surplus revenue generation

The stakeholder has stated that the Petitioners have on collective basis claimed revenue surplus of
around Rs. 3000 Crores for true up of FY 2023-24, however, no holding / carrying cost is considered
while seeking pass through of such amount in the ARR of FY 2025-26. It may be appreciated that the
surplus amount of around Rs. 3000 Crores recovered in FY 2023-24 is sought to be adjusted only in
FY 2025-26, that is after holding the surplus amount almost 2 years. The MYT Regulations provides
for carrying / holding cost at the SBI MCLR rate on the such amount. Considering SBI MCLR rate of
about 9%, the amount of holding cost works out to around Rs. 540 Crores.

Therefore, the Commission is requested to consider holding charges on the surplus amount as may be
worked out for FY 2023-24 and allow passing through in the tariff of FY 2025-26.

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Response of the Petitioner

The Petitioner submitted that there has been increase in Sales quantum from approved 12953.69 MU
as against 12491.07 MU. Further, it submitted that there has been higher revenue recovery on account
of increased sales quantum, in addition to the revenue from sales there is revenue on account of other
operating activities etc. Additionally, there has been partial recovery in revenue towards past pending
FPPPA recovery and also change in sales mix which is beyond control of Petitioner. Therefore, As a
result of these factors—higher sales, revenue from other operating income, past pending Fuel
surcharge recovery. and variation in sales mix—there has been an exceptional revenue surplus during
FY 2023-24. Accordingly, there has been no claim for carrying cost made by Petitioner.

Further as regard to holding cost on surplus, it is important to highlight that, in previous years, the
Petitioner refrained from claiming any carrying cost despite experiencing significant under-recovery.
The approach was adopted in consideration of the increased burden on consumers on account of
carrying cost. Following the same approach as in the past, it would be reasonable not to apply any
holding cost to the revenue surplus for the fiscal year 2023-24.

The Petitioner submitted that it is important to note that the Petitioner has made several proposals in
the Petition for FY 2025-26 aimed at addressing this issue and ensuring that benefit of the same is
passed on to the consumers.

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 72: Alignment of Peak Hours

The Objector has submitted that Ministry of Power has formulated the MoP Electricity (Rights of
Consumers) Rules, 2023, which stipulated that, duration of peak hours shall not be more than solar
hours as notified by the State Commission or State Load Despatch Centre. The objector added that
provisions of the MoP rules should be implemented in totally. Contrary to this Petitioner at its
convenience sought implementation of part of the stipulations of rules and ignored other stipulations.
Petitioner has approached the Commission to define duration of 4 hours (11:00 Hrs to 15:00 Hrs) as
solar hours, and from 07:00 Hrs to 11:00 Hrs and 18:00 Hrs to 22:00 Hrs i.e. 8 hours as peak hours.

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Here it will be worth noting the MOP rules specifically mentions that duration of peak hours cannot
be more than the duration of solar hours.

Response of the Petitioner:

As regard to the implementation of TOD charges it is submitted that the Ministry of Power, Govt. of
India vide notification dated 14.06.2023 have notified Electricity (rights to Consumer) Rules 2023
which provides for applicability of TOD charges for consumers having maximum demand more than
10 kW.

It is to state further that the cost of supplying power at peak hours is higher coupled with lower
availability in exchange and higher prices,

Moreover, the network requirement during peak hour supply is also high. It observed that there is steep
increase in average demand during morning peak hours. During FY 2023-24, during the morning
peak hours the average demand increase from around 13000 MW (07:00 Hrs) to around 16500 MW
(11:00 Hrs) i.e. increase of around 3500 MW. Further, solar power generation generally starts ramping
up after sunrise and peaks around noon to early afternoon and accordingly Petitioner has proposed to
offer TOD Discount in peak solar generation hours.

The very objective of TOD charges is to reflect the optimal utilization of available resources during
peak periods and to ensure cost reflective recovery from consumers. Further, peak hours TOD charges
indicates need for shifting consumers demand in such a manner that it aligns with generation profile
of the discoms.

Commission’s View:

The Commission has noted the response of the Petitioner.

Issue No. 73: Solar Hours
The Objector has submitted that currently 45 paisa / KWh Concession for consumption during 11:00
Hrs to 15:00 Hrs (i.e. 4 hours) is proposed by the Petitioner, in toto concession in solar hours is approx.
10% less than the normal tariff, which is contradicts with the rules stipulated by the Ministry of Power,
where rules stipulated atleast twenty percent less than the normal tariff. Therefore, it is imperative for
the Commission to consider this matter and the concession is aligned with the MOP Rules.

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Response of the Petitioner:

As regard to introduction of TOD discount, it is to mention that, solar power generation generally starts
ramping up after sunrise, peaks around noon to early afternoon and declines in the late afternoon.
Further, discoms based on past period demand data, and anticipated solar generation have proposed to
offer TOD discount initially for peak solar generation period (i.e. during 11:00 to 15:00 Hrs).

Further, to align electricity usage with RE generation and promote utilization of RE sources it is
provided to introduce concession to consumers for use of electricity during day time (11:00 hrs to
15:00 hrs) for FY 2025-26. The TOD Discount of Rs 0.45/Unit is in with the peak hour charges of Rs
0.45/Unit.

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 74: Petition lacks Transparency

The stakeholder has submitted that the Petition lacks transparency and crucial information is not
disclosed. The Objector submitted that the Petitioner has either ignored to file certain
formats/information or details are not provided as per specific format. The objector has submitted that
excel formats containing formulae, calculation, software macros and outputs forming the basis of the
Petition are not submitted by the Petitioner. It further submitted GUVNL is carrying out the power
purchase activities on behalf of four discoms. However, Audited accounts of GUVNL or even
unaudited accounts of GUVNL are not made available on public domain. The objector has submitted
that the Petitioner has not submitted the consolidated tariff formats for all four companies altogether
like category wise sales, revenue in terms of absolute amount and per unit basis etc along with
Petitions. It submitted that incase consolidated tariff format is provided, it would be possible for the
general public to verify and analyse the consolidated gap/surplus position claimed by the Petitioners.

Response of the Petitioner:

The Petitioner submitted that the Petition is filed following the principle, methodology and norms of
the Electricity Act, 2003 and MYT Regulations. The information as required under the MYT

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Regulations is duly provided along with the Petition, Further, other relevant information is also
available on Petitioners website.
Moreover, upon noticing certain inadvertent error in the Petition, an additional affidavit was filed by
Petitioner to address and rectify the identified differences, ensuring that the information is accurate
and compliant with the regulatory requirements
Commission’s View:
The Commission has noted the response of the Petitioner.
Issue No. 75: Power Purchase cost for FY 2023-24:

The Objector has submitted that Power Purchase expenses is Rs. 69186 Crores whereas as per Petition
the power purchase expenses are shown as Rs. 69763 Crores. The objector submitted that rebate is
available for making payment of power purchase invoices before due date, however no details are
made available in the positions with regard to earning of rebate amount and as to whether the claim of
power purchase cost is after considering rebate amount or not.

Response of the Petitioner:

The Petitioner submitted that as per the directive of the Commission, FPPPA is computed based on
the actual payment made during respective quarter, which do not include urn-discharged liability /
provisions etc. but includes the amount which is paid during the quarter for which liability is accrued
and booked as expenditure in the Books of previous year. Whereas Annual Accounts are prepared on
accrual basis as per the India Accounting Standards (IND-AS) which includes undischarged liabilities
/ provisions on account of matters pending in various courts and estimated as per the Orders of
competent courts / best assessment basis. Thus, the reasons for variation in power purchase cost as per
books and claimed in FPPPA are (i) there are certain amounts which are claimed / credited in FPPPA
on actual payment basis but part of previous year books (ii) there is increase / decrease in the final bill
amount after FPPPA submission (iii) amount accounted in FY 2023-24, but payment is made in
subsequent period.
Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.

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Issue No. 76: Purchase of Power from short term market and levy of Additional Surcharge
The objector has stated that in FY 2023-24, power purchase from power exchange was 5588 MU which
is significantly higher and constitutes around 6.50% of total power purchase. Considering the same,
there is no justification to claim Additional Surcharge when discoms are in shortage of power and
there is no stranded capacity.
Response of the Petitioner:
The Petitioner submitted that levy of additional surcharge and purchase of power from short term
market are entirely independent aspects. The levy of Additional Surcharge is in accordance with
Section 42(4) of the Electricity Act, 2003 and is for compensating discoms towards stranded power
purchase cost due to purchase of power by consumers from other sources. The Additional Surcharge
is levied as per the formula approved by the Commission and after demonstrating the stranded power
purchase cost. Whereas, the purpose of purchase of power from short term market is to economize
overall power purchase cost specifically when power is available from market at competitive rates.

Further, discoms have tied up significant RE capacity specifically from Wind and Solar sources for
fulfilment of RPO obligation stipulated by the Commission. Moreover, consumers are also wheeling
RE power (Wind/Solar) under open access, The generation (Wind/Solar) power is infirm in nature and
integration of RE power on large scale basis necessitates purchase of power from power exchanges to
mitigate variation in RE generation.

Therefore, the action of discoms for purchase of power from short term market to economize the
overall power purchase cost and as balancing power to mitigate variation in RE generation cannot be
construed as shortage of power or non-existence of stranded power purchase cost.

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.

Issue No. 77: Working of BST rate in True up Petition

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The objector has averred that working of BST rate for allocation of power purchase cost to discoms is
not explained in the Petition. The Objector requested the Commission to take up through scrutiny and
investigation of power purchase accounts of the Petitioner company and co-petitioner company to
ensure that correct and reasonable power purchase cost of recovered from the consumers.

Response of the Petitioner:

In this regard, it is to clarify that that in MYT/MTR Orders, the Commission has approved BST
mechanism. Thus, power purchase cost incurred by GUVNL for FY 2023-24 is allocated to individual
discom as per BST mechanism approved by the Commission.

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.
Issue No. 78: Exorbitant increase in tariff due to FPPPA charges

The objector has stated that there is huge increase in the tariff due to increase in FPPPA charges and
therefore consumers are to be heard before approving the increase in FPPPA charges. The objector
submitted that the Petitioner have over recovered the exorbitant amount of around Rs. 1293 Crore from
consumers in the name of FPPPA charges during FY 2023-24. As per the MYT Regulations, the
Petitioners are liable for holding cost for such over recovery of FPPPA charges, however no such
holding cost is considered by the Petitioner.

Response of the Petitioner

The Petitioner submitted that FPPPA charges are towards adjustment due to increase or decrease of
actual power purchase cost during the year vis a vis power purchase cost approved by the Commission.
Since FPPPA is an adjustment charge towards variation in power purchase cost due to uncontrollable
factors, it may increase or decrease based on variation in actual power purchase.

The Petitioner submitted that the Commission has approved the methodology for computation and as
per the methodology and approved formula it is collecting FPPPA charges from consumers, after
approval of the Commission. Moreover, in past periods wherein the worked out FPPPA was on higher

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side on account of steep rise in landed cost of generation, discoms had levied FPPPA charge at lower
rate as compared to the actual FPPPA worked out to avoid sudden tariff shock to consumers.
Accordingly, there has been partial recovery of past pending dues of FPPPA during FY 2023-24.

Moreover, in past periods wherein the worked out FPPPA was on higher side on account of steep rise
in landed cost of generation, discoms had levied FPPPA charge at lower rate as compare to the actual
FPPPA worked out to avoid sudden tariff shock to consumers. Accordingly, there has been partial
recovery of past pending dues of FPPPA during FY 2023-24.

Moreover, in case of lower FPPPA, discoms has appropriately reduced the FPPPA rate to be recovered
from consumer to pass on the benefit of the same to consumer. It is also pertinent to mention that
benefit to consumers was passed on during Q4 FY 2023-24 by way of reduction of Rs 0.50/Unit in
FPPPA.

Further as regard to the holding cost, it is important to highlight that in previous years, the Petitioner
has refrained from claiming any carrying cost despite experiencing significant under-recovery. The
approach was adopted considering implication of the increased burden on consumers on account of
carrying cost. Following the same approach as in the past, it would be rational approach to not apply
any holding cost to the revenue surplus for the fiscal year 2023-24.

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.
Issue No. 79: Matters relating to GETCO

The objector has raised following matters relating to GETCO:

i. Transmission losses to be reduced up to 1 % otherwise activity wise unbundling is

meaningless.
ii. Statement of Substation wise and line wise Transmission losses is required to be
submitted.(Last three Years)

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iii. Statement of sub-stations running without the Electrical Engineer required to be submitted
specifically.
iv. Interest on Working Capital is not grantable.
Response of the Petitioner

The Petitioner has not submitted any response.

Commission’s View

The present regulatory process relates to the Truing up and Tariff Petition filed by the discoms. The
issue of GETCO have been addressed in separate Petition.

Issue No. 80: Matters relating to GERC

The objector has raised following matters relating to GERC:

i. Standards of Efficiency Regulations since not prepared

ii. Need of Farm, Solar P.V. Grid, Inter-Active system is yet remained unsatisfied. Hence a
separate regulation is required to be prepared & notified
iii. A separate Generation code Regulations required to be prepared and notified
iv. A separate Transmission code regulation required to be prepared and notified
v. To integrate all the matters related to the Agricultural Electrical Consumers. A separate
regulation "Rights of the Electricity Consumers" is essential to be prepared. We have
already submitted the matter by written letter Dated: 09/06/2022. But since remained un
replied.
vi. The true up Petitions are to be separated from the tariff determination Petitions. It should
be submitted at the end of first Qtr. of the following F.Y. But not later than the end of July
month.
vii. For EHT Consumers tariff schedule is to be devised separately in the schedule as Part III.
viii. At the end of Order of the various tariff Petitions, Tariff Schedule to be published in the
state's official language i.e. in Gujarati along with English, so that common consumer may
understand it easily At the end of Order of the various tariff Petitions, Tariff Schedule to

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be published in the state's official language i.e. in Gujarati along with English, so that
common consumer may understand it easily.
ix. For BPL residential category of consumers maximum ceiling of Electricity Consumption
as well as connected load to be determined within the Tariff Order itself, so that to prevent
misuse in the name of BPL.
x. Simplification in the tariff structure to be made by reducing some of the categories and sub
slabs.
xi. A separate regulation for Agro. Irrigation work, function and system are required to be
introduced by GERC to justify need of poor and real farmers.
xii. A separate ombudsman office is required to be established at Surat, Vadodra, Mehsana and
Gandhinagar
xiii. New Regulations for Generation code and Transmission code need to be notified by the
Commission.
xiv. Exclusion from ARR
a) Capital expenditure towards un commissioned substations and under commission must
be excluded from ARR, unless actual power feed in to the feeders and reach to the
DTC and consumers.
b) B &D Provisions- Actual amount written off during the year, only balance amount to
be allowed for the purpose of ARR not the whole amount to be passed on consumers,
c) Carrying cost and likewise other cost not to be allowed in ARR. Tariff determination
to be done after its exclusion as per usual
d) Any other items on expenditure side for which Tax benefit availed or eligible
Response of the Petitioner

The Petitioner has not submitted any response.

Commission’s View

The present regulatory process relates to the Truing up and Tariff Petition filed by the discoms. The
Commission approves the ARR after following provisions in the MYT Regulations and applying its

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prudence for allowing expenses. The Commission’s views and rulings on tariff are detailed in the
Tariff Philosophy section. Rest of the issues do not relate to the current tariff proceedings.

Issue No 81: Matters relating to UGVCL & PGVCL

The objector has raised following matters relating to UGVCL & PGVCL:

i. Office of Appellate authority not provided premises in the corporate office compound at
Mehsana.
ii. Our demand to establish the circle office to be open for Patan District in UGVCL area since
not considered.
iii. Our demand to establish new Divisional offices at Dhanera (Dist. Banaskantha) in UGVCL
area and Kheralu (Dist. Mehsana) in UGVCL area to be open on urgent bases, since not
considered.
iv. Our demand to establish a new CGRF office at Gandhinagar, Jamnagar since not considered.
v. ln PGVCL area some new circle offices required to established as under Savarkundla (Amreli),
Gondal (Rajkot), Limdi (Surendranagar), Nakhatrana (Kutch).
vi. Distribution loss of JGY feeders 15.66 is not acceptable. Of Palanpur circle is 12.82% is also
not acceptable.
Response of the Petitioner

The Petitioner has not submitted any response.

Commission’s View

The present regulatory process relates to the Truing up and Tariff Petition filed by the discoms. The
issues raised are not relevant for the present Tariff proceeding.

Issue No. 82: Increase in R&M Expenses

The objector has stated that there is increase in R&M expense of all discoms except DGVCL.
Considering this fact, the Commission is requested to seek complete details and information in relation
to R&M expenses claimed by the Petitioner and in absence of convincible explanation for the same,
the Commission may not allow such expenditure.

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Response of the Petitioner

The Petitioner submitted that Repair and Maintenance expenditure is dependent on various factors.
The assets of Discoms, which are old require regular maintenance to ensure uninterrupted and
continuous grid operations. DISCOMs are undertaking best efforts to ensure uninterrupted operations
of the system and accordingly has been undertaking necessary expenditure for R&M activities.
Moreover, DISCOMs takes various steps for efficient and reliable electricity distribution to its
consumers and for reduction of distribution loss. Further, considering long coastal line of the State and
vast season various in past couple of years, DISCOMs are prone to such natural calamities. These
frequent cyclone and Natural calamities disrupt the network, and company is required to spend amount
towards restoration. Moreover, DISCOMs makes all the efforts for reduction of Distribution losses
and endeavors to achieve the Loss reduction trajectory as approved by the Commission, which besides
other increase the R&M expenses for a Discom.

Hence, the entire expenditure is legitimate expenditure, and any variation is purely beyond its control.
Commission’s View

The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.
Issue No. 83: Increase in A&G Expenses

The objector has stated that there is 25% increase in A&G expense of all discoms. Considering this
fact, the Commission is requested to seek complete details and information in relation to A&G
expenses claimed by the Petitioner and in absence of convincible explanation for the same, the
Commission may not allow such expenditure.

Response of the Petitioner

The Petitioner has not submitted any response.

Commission’s View

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The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.
Issue No. 84: Employee expenses

The objector has averred that there is a mismatch in the employee expenses claimed for FY 2023-24
in the Petition and shown in the Audited accounts. The Commission is requested to seek complete
details and information in relation to Employee expenses claimed by the Petitioner.

Response of the Petitioner

In this regards, it is submitted that Employee expenses comprise of salaries, dearness allowance, bonus,
terminal benefits in the form of gratuity, leave encashment and staff welfare expenses. Furthermore,
Employee expenses are considered as controllable expenses under the provisions of the GERC MYT
Regulations, 2016, however, post implementation of 7th Pay Commission, discoms had to bear the
impact of increased salary pay-outs along with payment of arrears related to wage revisions, incentives,
allowances and HRA&CLA. These expenses are being claimed as uncontrollable in accordance with
the approach adopted by the Commission.

It may be noted that the impact due to 7th Pay Commission was implemented from August 2017 but
the actual payment of salaries as per 7th Pay Commission was initiated from FY 2019-20 and the
settlement towards revised allowances and incentives were pending which were settled in FY 2020-21
and payment towards the same has initiated from FY 2020-21.

Accordingly, the sharing of gain and losses have been computed under the head of employee expense.

Commission’s View

The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.

Issue No. 85: Increase in interest and Finance Charges

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The Objector has submitted that there is a wide variation in the claim of rate and amount of Interest
approved by the Commission for FY 2023-24. No proper explanation/reasons goven for such high
interest rate & increase in interest amount by 65% as compared to approved value. The objector has
stated that discoms shall not be allowed interest and finance charges more than bank rate plus 200 base
point.

Response of the Petitioner:

In this regard, it is to state that as per MYT framework approved by the Commission, for truing up,
the interest rate shall be considered at the weighted average rate of interest rate calculated based on
the actual loan portfolio of company. Accordingly, the claim towards interest and finance charges are
legitimate and a detailed computation has been submitted to the Commission as sought.

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.
Issue No. 86: Computation of Depreciation

The objector has stated that evidence shall be provided to ensure no depreciation is claimed on the
assets depreciated up to 90%. The objector has submitted that the Petitioner has ignored to file the
form No. 6 containing the details of assets which have completed their useful life.

Response of the Petitioner:

The Petitioner submitted that it has not claimed depreciation on assets which are already depreciated
up to 90% of GFA as per the MYT framework. Further, Company's Annual accounts / financial
statements for the year ending 31st March 2024 are audited by Statutory Auditors & C&AG.

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.
Issue No. 87: Overall Gap/ Surplus position for FY 2023-24

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The Objector has submitted that there is revenue surplus of Rs. 3000 Crore, however the Petitioner has
not considered the Holding/Carrying cost while seeking pass through of such amount. The
Commission is requested to consider holding charges on the surplus amount.

Response of the Petitioner:

The Petitioner submitted that there has been increase in Sales quantum from approved 33704 MU as
against 37,181 MU. It submitted that there has been higher revenue recovery on account of increased
sales quantum, in addition to the revenue from sales there is revenue on account of other operating
activities etc. Additionally, there has been partial recovery in revenue towards past pending FPPPA
recovery and also change in sales mix which is beyond control of Petitioner. Therefore, as a result of
these factors higher sales, revenue from other operating income. past pending Fuel surcharge recovery,
and variation in sales mix there has been an exceptional revenue surplus during FY 2023-24.

Further with regard to the holding cost, it is important to highlight that, in previous years, the Petitioner
refrained from claiming any carrying cost despite experiencing significant under-recovery. The
approach was adopted in consideration of the increased burden on consumers on account of carrying
cost. Following the same approach as in the past. it would be reasonable not to apply any holding cost
to the revenue surplus for the fiscal year 2023-24.

Moreover, it is important to note that the Petitioner has made several proposals in the Petition for FY
2025-26 aimed at addressing this issue and ensuring that benefit of the same is passed on to the
consumers.

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.
Issue No. 88: Power Purchase Costs for FY 2024-25 and subsequent years
The objector has stated that there is significant quantum estimated to be purchased through short term
/ power exchange, which indicates that the Petitioners are in deficit of power and therefore recovery
of additional surcharge should be discontinued. The Objector submitted that the total short term

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purchase is shown as 12335 MU to be purchased on short term basis. Therefore, when the Petitioner
is not having enough capacity tied up under long term power purchase agreement for entire control
period, the claim of stranded generating capacity and thus the consequent claim of levying additional
surcharge from consumers procuring power through open access is not justified.

Response of the Petitioner:

As regard to purchase of short-term power, it is to state that the estimation of purchase of power
through short term arrangement for FY 2025-26 is based on present market condition with an objective
to economize overall power purchase cost specifically to avoid costlier power purchase from gas-based
power stations due to exorbitant increase in gas price at international market. The Petitioner submitted
that it has power purchase arrangement on long terms basis having fixed cost payment liabilities to
meet the demand of existing as well as the future consumer base.

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.
Issue No. 89: Comparison of Power Purchase Rate of the Q2 of FY 2024-25 with the Power
Purchase Cost estimated for FY 2025-26

The objector has stated that no justification is given as to how power purchase cost for FY 2025-26
(Rs. 5.36 per unit) would be lower side as compared to current power purchase cost (Rs. 5.53 per unit
for Q2 of FY 2024-25).

Response of the Petitioner:

The Petitioner submitted that Power Purchase cost of a quarter cannot justify the Power Purchase cost
estimated for a year. Generation mix, availability of power stations. energy balance and demand and
supply scenario of a quarter & estimated scenario for FY 2025-26 is entirely different and not
comparable and therefore it is not appropriate to compare the per unit power purchase cost of a quarter
of FY 2024-25 & estimated power purchase cost of FY 2025-26. The power purchase cost for FY
2025-26 is estimated considering availability of new generation capacity, estimated availability of tied

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up capacity during the year and off-taking of power considering merit order dispatch principle giving
highest priority to the generating stations having lower cost of generation and so on.

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.
Issue No. 90: Estimation of Sale, Energy requirements and losses for FY 2025-26
The respondent has stated that sales for HT consumer is estimated at lower level compared to actual
sales to HT consumers for FY 2023-24 thereby underestimating the sales revenue from HT category.
The actual sale growth for HT consumers as 3-5 years CAGR is 8% to 17%, thereby no justification
and logic to estimate sales growth HT consumers at 5% only for all the years.

Response of the Petitioner:

In this regard, it is to mention that constant variation in sales has been observed in the Industrial HT
category in last five years due to presence of Open Access, slowdown in the economy etc. Year on
Year growth may be higher, but it would not be appropriate to expect this growth to be sustainable as
this growth was driven by Industrial Open Access and Captive consumers resorted to Company's
power as alternative source was significantly high. Therefore, sales estimated for HT Category is quite
realistic and prudent.

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.

Issue No. 91: T&D Loss

The objector has submitted that higher T&D loss is considered for estimation of power purchase cost
as compared to actual T&D losses for FY 2023-24 by PGVCL, DGVCL & MGVCL.

Response of the Petitioner:

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The Petitioner submitted that the T&D loss level of FY 2023-24 is unusual on account of various
reasons including weather conditions, high valued HT consumers resorted to Company's Power etc.
Therefore, realistic approach has been considered for estimating T&D loss for FY 2025-26 considering
the various promotional measures to adopt RE power by consumers has been initiated by State
Government as well as the Commission.

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.
Issue No. 92: Estimation of RDSS expenses for FY 2025-26
The objector has stated that the Petitioner has estimated RDSS meeting Opex as part of O&M
Expenses. The stakeholder has submitted that there is no provision under MYT Regulations, 2024 to
allow additional expenses like RDSS metering expenses. The claim for RDSS metering expenses is
against the MYT Regulations, 2024 and should be rejected.

Response of the Petitioner:

The Petitioner submitted that Govt. of India has launched Reformed based and Result Linked,
Revamped Distribution Scheme. The key objectives of the scheme are (i) to improve the quality,
reliability and affordability of power supply to consumers through a financially sustainable and
operationally efficient Distribution Sector; (ii) Reduce the AT&C losses and (iii) Reduce ACS-ARR
gap.

Accordingly, the projected capital expenditures have been claimed by Company in accordance with
the approved Detailed Project Reports.

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.
Issue No. 93: Submission on Tariff Proposal

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The objector submitted that there is Revenue surplus of 5094 Crore and the Petitioner has not provided
any computation of Revenue with proposed tariff and FPPPA charges recovery. Inabsence of such
computation, there is no clarity with regard to resultant revenue surplus position after implementation
of proposed Tariff.

Response of the Petitioner:

The Petitioner has proposed various measures to pass through the benefit of Revenue surplus to the
consumers during FY 2025-26.
Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.
Issue No. 94: Time of Use

The objector has requested the Commission to approve Time of Use discount atleast twenty percent
HT/EHT/LT that category of consumers applicable for consumption during 8 hours a day. The
Petitioner requested to introduce the time of day from 11:00 Hrs to 15:00 Hrs.

Response of the Petitioner:

As regard to introduction of TOU discount, solar power generation generally starts ramping up after
sunrise, peaks around noon to early afternoon and declines in the late afternoon. Further, discoms based
on past period demand data, and anticipated solar generation have proposed to offer Tou discount
initially for peak solar generation period.

Envisaging RE power tie up, to access cheaper RE capacity for meeting energy demand and to promote
utilization of RE sources and align electricity usage with RE generation, it is provided to introduce
concession to consumers for use of electricity during day time (11:00 hours to 15:00 hours) for FY
2025-26.

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.

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Issue No. 95: Separate Tariff for Prepaid smart meters

The objector has requested the Commission to approve 5% rebate in the Energy charges so as to
incentivize the consumers to opt for prepaid metering.

Response of the Petitioner:

As regard to rebate for prepaid smart meters, it is to mention that the Government of India has approved
reformed based and Result Linked, Revamped Distribution Sector Scheme. The key objective of the
scheme involves installation of prepaid smart metering for consumers along with the associated
Advanced Metering Infrastructure.

The discoms are in the process of implementation of the RDSS scheme in the State and the replacement
of all the existing consumer meters with smart prepaid meters will be executed by the discom in a
phased wise manner. The Commission in Tariff Order dated 01.06.2024 have directed discom to
provide separate tariff structure to the consumer with prepaid Smart Meter in Tariff Order.

Accordingly, it is proposed to offer a separate lower tariff (i.e. lower energy charges) to pre-paid smart
metered consumers as compared to existing energy charges applicable for LT category (except AG
consumer) covered under RDSS scheme.

It is pertinent to mention that, in addition to above rebate on pre-paid smart meters, concession of Rs
0.45/unit for consumption of energy during 11:00 hrs to 15:00 hrs is also proposed for all LT consumers
(except AG) installing Smart pre-paid meters/

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.

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Issue No. 96: Concession to the consumers supply at 11kV and increase in rebate for supply at
33kV and above consumers.

The Objector has submitted that incentivize the consumers availing power at high voltage, the
Commission is requested to approve the EHV rebate atleast at 8% or Rs. 0.50/unit for availing power
at 66 kV or above voltage.

Response of the Petitioner:

As per Tariff Policy, tariff determination is based on overall Average Cost to Serve, Consumers are
being connected at different voltage level according to their load requirement and as per relevant
provisions of Electricity Supply Code. Therefore, consumer being supplied at certain voltage level by
virtue of its load requirement consuming power supply at that voltage class can't be considered to have
made extra efforts in reducing the losses.

However, to promote consumption of energy at higher voltage level, it is proposed to introduce a 1%

rebate on energy charges for consumers availing supply at 11 kV voltage levels. Additionally, the
existing rebate for consumers connected at 33 kV and above (EHV) is proposed to be increased to 2%.

Commission’s View:
The Commission has noted the response of the Petitioner.
Issue No. 97: Segregation / determination of Wheeling Charges in the retail tariff applicable to
various category of consumers
The objector has requested to approve separate wheeling charges for higher voltage level or to provide
EHT rebate to consumers utilizing electricity at higher voltage level.
Response of the Petitioner:

In this regard, it is to state that the Commission already determines separate wheeling charges and
losses for LT level and HT network managed by the Company.

Moreover, as regards providing EHV rebate, it is to state that as per Tariff Policy, tariff determination
is based on overall Average Cost to Serve. Consumers are being connected at different voltage level

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according to their load requirement and as per relevant provisions of Electricity Supply Code.
Therefore, consumer being supplied at certain voltage level by virtue of its load requirement
consuming power supply at that voltage class can't be considered to have made extra efforts in reducing
the losses. However, to promote consumption at higher voltage level, Petitioner has already proposed
to introduce rebate for HT & increase existing rebate to EHV category of consumers.

It submitted that the Commission in its Tariff Order dated 01.06.2024 has already reduced the
applicable wheeling losses based on the data available with the Commission and considering the
comments/ suggestions received from stakeholders. Therefore, there may not be any further
requirement to review the wheeling loss level determined by the Commission especially when the
same is being complied by submitting scientific study undertaken by external agency as well as recent
relief has already been granted by the Commission.

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.
Issue No. 98: Incentives for incremental consumption from DISCOMs

The objector submitted that various SERCs provides for rebate for incremental consumption from
discoms in excess base year consumption. The objector has submitted that there should be rebate
mechanism to incentivize consumers to increase consumption from discoms.

Response of the Petitioner:

In this regard, it is to state that, in case the consumer maintains better load factor, the overall Tariff on
per unit basis wilt get reduced due to higher utilization for a given contract demand. Thus, by
maintaining a better load factor, the consumer is already benefitted by way of lower cost of electricity
per unit due to increased utilization of their contracted capacity and socialization of demand charges
on higher consumption units.

Commission’s View:
The Commission has noted the response of the Petitioner.

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Issue No. 99: Rebate for payment of bills through digital mode

The objector has submitted that consumers shall be incentivize by allowing rebate towards digital
payments. The objector added that other SERC are allowing rebate upto 1% of energy bill, if the bill
amount is paid through digital mode of payments.

Response of the Petitioner:

The Petitioner submitted that the Commission vide notification dated 05.12.2023 has issued GERC
(Supply code) Third Amendment, 2023 wherein it is provided that discom shall give a rebate of 0.01%
or Rs. 50.00, whichever is less, calculated on the annual energy bill amount, to such consumer who
has paid all the bills of a financial year within due date of payment of such bills through e-payment
mechanism. Moreover, it is also provided that such amount shall be claimed by Company in its Annual
Revenue Requirement.

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 100: Introduction of Rebate / Incentive for better load factor for HT/demand based
consumers

The objector has suggested incentives/rebates for maintaining better load factor by HT consumers and
demand based LT consumers, which in turn help discom in better utilisation of generation capacity
and transmission & distribution network leading to economization of fixed cost.

Response of the Petitioner:

This is the suggestion to the Commission. However, it is to submit that many of the consumers don't
draw their entire power requirement from the Grid instead prefer to draw partly or fully through Open
Access or from the other sources tike Solar, Wind etc. under different arrangements. Therefore, the
load factor of such consumers would be better, but the requirement might not have met from the
Company. It is further to submit that in case consumer maintains better toad factor, in that case, the
overall tariff on per unit basis will get reduced due to higher utilization for a given contract demand.

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By this way, the consumer is already getting benefit for maintaining better load factor. It is further to
submit that any modification to be made by the Commission should be neutral to the Company.

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 101: Rationalization in Energy Charges for HTP-I Category

The objector has sought for single energy charge of Rs. 4.00 per unit for HTP-I category irrespective
of the billing demand. Moreover, the cost of energy supply reduces with increase in voltage level, so
it is against the principle enumerated in the Electricity Act, 2003 to charge higher rates for higher
billing demand.

Response of the Petitioner:

In regard to response to rationalize the energy charge for HTP-I category, it is to state that the average
realization from HTP category is nearly within the band provided in the National Tariff Policy and the
Petitioner have not suggested tariff change for HT tariff category.

Further, tariff structure is designed keeping in mind the different social, economic, technical, and
demographic and other relevant parameters. The Commission has been time to time reviewing the
Tariff structure and rationalizing the tariff. Therefore, change in any particular category should not be
considered in an isolation manner. However, any change in the tariff structure may be revenue neutral.

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 102: Demand charges from HT consumers

The objector has sought for bringing down the demand charges for HT consumers with contracted
demand of more than 1000 kVA.

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Response of the Petitioner:

Regarding demand charges recovered from HT Category consumers it is to submit that, it is the basic
commercial principle for any organization to recover its fixed costs through recovery of fixed charges.
However, with the present tariff structure, partial fixed cost is recovered through energy charges. Even
with the existing rate of Demand Charges, the fixed cost recovery from HTP-I consumers is partial
only w.r.t fixed cost attributable to them and remaining is still being recovered through energy charges.
In case of consumers who are not procuring power from Distribution Licensee in correspondence to
its contract demand, the unrecovered fixed cost otherwise payable by such consumers is burden to
general body of consumers.

Therefore, as such there is need to align demand charges applicable to HT consumers with fixed cost
incurred by discoms.

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 103: Power Factor Adjustment charges

The objector submitted that for HT consumers demand charges is stipulated on per kVA basis and not
on KW basis. Therefore any increase/decrease in reactive consumption (and thus power factor) will
have impact on KVA demand recorded in the meter. The objector requested the Commission to decide
demand charges for HT consumers on kW basis instead of KVAS basis to avoid double penalty for
power factor. The objector has sought incentive for power factor between 90%-95% for helping the
grid and that there should not be discrimination in the rate for incentive and penalties but should be at
equal rate and that too on energy charges including fuel surcharge.

Response of the Petitioner:

The power factor rebate rate of 0.5% of Energy Charges is fixed by the Commission in Review Petition
no 1, 2 & 3 of 2007 filed by Western Railway after a lot of discussion & deliberation from both the

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sides. In the previous Tariff Orders also, the issue was deliberated at length by the Commission and
the Commission has consciously taken decision not to alter the present rate of rebate.

Further, it is to submit that higher incentive towards the Power factor correction may lead to over
compensation which will influence the Voltage Profile of the System, particularly when the overall
voltage profile has improved primarily due to increased Generation across the State. Moreover, the
rebate on better power factor is given since long and, therefore, the cost incurred by the consumer for
power factor correction should have been recovered by this time.

Thus, present provision of giving rebate or penalty on the basis of charges under the head "Energy
Charges" in the Tariff Schedule annexed to the present Petition is appropriate. Moreover, for better
power system management, it is desirable to move towards "KVA" and "KVAH" based billing system,
therefore, respondent proposal to move from KVA based to KW based billing system is not appropriate.

It is further to submit that the issue has to be considered from the point of view that the consumer can
control its power factor and it is its prime responsibility to maintain correct power factor to ensure the
stability of the system. In case if consumer fails in its responsibility, it has to be penalized in a manner
which disincentives such behavior being not in discipline with grid.

Further, the PF adjustment charges are levied at rate of 1 % on total amount of energy charges for
every 1% drop or part thereof in average power factor during the month below 90% and PF adjustment
charges at rate of 2% for 1 % drop or part thereof in average power factor below 85% and rebate is
provided at 0.5% on the total energy charges for every % rise or part thereof in average power factor
during month in excess of 95%. Accordingly, for rise in PF above 95% is part of 1 % (say 95.1 %), the
rebate is provided on pro-rate basis for PF improvement in part of 1 % (i.e. on 0.1%) and in case the
drop in PF below 90% is part of 1% (say 89.90%), the penalty is levied on pro-rate basis for such drop
in PF of 0.10%. Therefore, consumers are not penalized or overcompensated for partial
drop/improvement beyond threshold limit in power factor approved in tariff schedule.

Therefore, the penalty and rebate are appropriately reflected.

Commission’s View:

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The Commission has noted the response of the Petitioner.

Issue No. 104: Discontinuation of Concession for use of electricity during night hours for HTP-I
category and discontinuation of concession in energy charges for HTP-IV category

The objector has requested the Commission to consider to reintroduce night concession discount as
was prevailing until FY 2023-24.

Response of the Petitioner:

The Petitioner submitted in past conventional sources of generation was having dominant share in
power generation mix of DISCOMs and therefore lower variable charges / night rebate was offered
for consumption during night hours as to support the base Load generating stations coupled with lower
cost of generation. However, there is paradigm shift in generation profile and energy mix of DISCOM
on account of inclusion of RE generation i.e. particularly solar generation.

Therefore, in the given scenario, the cost of power during certain day hours has reduced with
availability of solar power and the cost of power during night hours has increased on account of
increase in fuel prices along with minimal availability of RE power during night hours. Thus, to align
with the generation profile, optimize the power purchase cost, it is desirable to discontinue night hour
rebate so as to ensure cost reflective tariff and accordingly, the Commission in the tariff order for FY
2024-25 dated 01.06.2024 has decided the matter.

Further, considering the given scenario, Petitioner has proposed to provide concession for use of
electricity during 11:00 to 15:00 Hours.

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 105: Introduction of Power Factor Rebate / incentive for LT category

The objector has sought introduction of PF incentive / rebate to LTMD category like that existing for
HT categories.

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Response of the Petitioner:

The Petitioner submitted that under the "ABT" regime, discoms are required to maintain "kvarh" drawl
or injection depending upon the voltage level. System is highly dynamic and therefore, dynamic
compensation mechanism is also required. Since, LT consumers are very large in numbers and
therefore, it would be very much difficult to manage "kvarh" consumption of ad such consumers
particularly when rebate or incentive is provided for better power factor to such consumers. The
mechanism of providing PF rebate may also work as counter productive as in order to get maximum
benefit, consumers may tempt to provide excessive compensation which besides making grid operation
difficult may create a serious safety reEated issue. Therefore, it is not desirable to provide rebate/
incentive to LT category consumers which are large in numbers will make it difficult reactive power
management and safety related issues. Further, giving rebate or discount for one component of tariff
to any category of consumers would require to recover higher amount through other components from
other categories of consumers.

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 106: Tariff for supply of Green Tariff category

The Objector requested the Commission to determine the green tariff as per the methodology pescribed
in Green Open Access Rules, 2022.

Response of the Petitioner:

In this regard, it is submitted that in accordance with rules notified by Ministry of Power, Govt. of
India, discom has submitted the requisite computation before the Commission. Thereafter, the GERC
vide Tariff Order dated 31.03.2023 has introduced Green Power Tariff for FY 2023-24 in the tariff
schedule.

Further, the Commission has notified GERC Green Open Access Regulation, 2024 wherein
applicants/consumers can fulfil their green power requirement through open access.

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Further, Green Tariff is an option tariff and is levied to the consumers opting for meeting their demand
of green energy and payable over and above the normal tariff applicable to the respective category as
per Tariff Order. The charges collected from consumers opting Green Tariff Power are as per Tariff
Order issued by the Commission from time to time.

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.

Issue No. 107: Cross Subsidy Surcharge

The objector has stated that there should not be determination and levy of Cross Subsidy Surcharge
(CSS) from open access users before fixing the following issues:

• There must be road map in place for the reduction in cross-subsidy and CSS thereof.
• Determination of Tariff and cross subsidy level should be on the basis of voltage-wise cost of
supply.
• CSS should be decided on the basis of weighted average cost of power purchase of top 5% at the
margin and not on the basis of simply weighted average cost of power purchase.
• While deciding the CSS, the payment of demand charge and additional surcharge is to be
deducted from the applicable Tariff so that open access consumers should not unfairly be double
charged. (i.e., fixed cost recovery from Demand Charge and Additional surcharge as well as from
CSS).
Response of the Petitioner:
Cross Subsidy Surcharge is being determined by the Commission following the principle laid down in
the "National Tariff Policy" in the Tariff Order for respective year.

As regards to wheeling loss it is to submit that the Commission in its Tariff Order dated 31.03.2018
has noted that, in compliance to the above directives issued by the Commission. Study was undertaken
by GUVNL and the detailed study report in this regard was submitted to the Commission. Considering

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the findings of Study Report, the Commission has not considered to change the wheeling loss
applicable for wheeling of energy at 11 KV (HT) level and 440 KV (LT) level.

The Petitioner submitted that the Commission has taken the note of the above study undertaken by
expert external agency and determined the wheeling loss accordingly in the subsequent Tariff Orders.

The Commission vide its Order dated 01.06.2024 has already reduced the applicable wheeling losses
based on the data available with the Commission and considering the comments / suggestions received
from stakeholders. Therefore, there may not be any further requirement to review the wheeling loss
level determined by the Commission, especially when the same is being complied by submitting
scientific study undertaken by external agency as well as recent relief has already been granted by the
Commission.

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.

Issue No. 108: Wrong billing demand for Seasonal Consumers

The objector has stated that discoms are levying demand charges during seasonal month considering
actual demand or 85% of contract demand, whichever is higher. Therefore, the Commission is
requested to intervene in the matter and direct discoms accordingly.

Response of the Petitioner:

In this regard, it is to state that as per the tariff schedule notified by the Commission from time to time
for HT seasonal consumer, the billing demand shall be the highest of the following:

i) The highest of the actual maximum demand registered during the calendar year;

ii) Eighty-five percent of the arithmetic average of contract demand during the year;

iii) One hundred kVA.

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Accordingly, the billing for seasonal consumers are done with accordance with the provisions of tariff
schedule approved by the Commission.

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.

Issue No. 109: Requirement for change in minimum agreement period of 2 years

The objector has stated that as per the present norms, the minimum agreement period is stipulated as
2 years from the date of commencement of power supply and minimum charges are applicable for the
period shortfall of 2 years in case of surrender of demand before 2 years. In this context, it is to state
that the minimum agreement period of 2 years is continued since past many years without any
modifications. It is to submit that other consumer will be served from the demand surrender by the
consumer. Thus, discom are getting double recovery of demand charges namely as a minimum charge
compensation from the consumer surrendering the demand and recovery of billing demand charges
from other consumers to whom the same demand is served. Further, it is to state that in case of other
States like Maharashtra, Haryana, there is provision to surrender the demand by giving one month's
notice without levy of minimum charges. ln the scenario of business uncertainty due to swift change
in technology and consumer preference, it is suggested to reduce the minimum agreement period to
one month.

Response of the Petitioner:

The Petitioner submitted that the period of Power Supply agreement is governed as per the provisions
of electricity supply code and related matters to Regulations.

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.

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Issue No. 110: Deviation in approved vs actual expenditure

The Objector has submitted that there is deviation of more than 20% from the approved values and
average deviation is 16%. The Petitioner have not controlled their expenses at the sake of consumers.
The Petitioner has not given justification for additional expenses to justify their discretionary spending.

Response of the Petitioner:

The Petitioner submitted that the present Petition is being filed for Truing up of FY 2023-24 wherein
Truing up of previous year's expenses and revenue by the Commission shall be carried out based on
Audited Accounts of Petitioner vis-å vis the approved expense / revenue in ARR and categorization of
variation in performance on account of controllable factors and uncontrollable factors.

Further, as per the provision of Regulations, the approved aggregate gain or loss to the distribution
licensee on account of uncontrollable factors shall be passed through as an adjustment in the tariff
whereas the gain or loss on account of controllable factors is utilized / pass through in accordance with
the relevant provision of Regulations. Moreover, details of the variation between expenses incurred
and revenue earned and the figures approved by the Commission is submitted by Petitioner in the
prescribed format to the Commission along with requisite details.

Additionally, major expense accounts for purchase of power for supply of power to consumer, wherein
cost of variation in Fuel / power purchase prices resulting into higher landed cost of fuel is beyond the
control of the Petitioner. Moreover, the estimation of Power Purchase expense while preparation of
ARR was on the basis of sales estimation and details of power purchase available at the time of
preparation of ARR whereas in Truing up there has been increase in actual sales quantum resulting
into increase in power purchase cost to meet the demand, in addition to the variation in fuel cost.
Further, Merit Order Despatch principles is adopted for dispatch of power from generating stations to
minimize the power purchase cost.

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.

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Issue No. 111: Approved and True Up data for FY 2024-25 to be provided

The Objector submitted that in the ARR determination for FY 2025-26, the petitioner has taken the
base of figures for FY 2023-24 while it would have been appropriate if actual figures for FY 2024-25
were given.

Response of the Petitioner:

In this regard it is submitted that the details for FY 2024-25 is required to be submitted at time of filing
of True-up Petition for FY 2024-25 based on the actual expense / revenue against approved in ARR
for FY 2024-25. Further, approved details for FY 2024-25 is already available in Tariff order for FY
2024-25.

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 112: FPPPA charges recovered from the consumers

The stakeholder has stated there has been a substantial increase in actual Power Purchase expense
compared to Approved Expense. Higher FPPPA Charges recovered from Consumers, FPPPA charges
to be reduced.

Response of the Petitioner:

The Petitioner submitted that power purchase cost comprises of around 85% of the total expense. The
increase in power purchase cost with respect to the approved cost is majorly on account of increase
sales quantum of around 37181 MU as against approved Sales of 33704 MU for FY 2023-24. In
addition to increase in sales quantum there is increase in power purchase cost due to variation in fuel
prices.

It is submitted that as per the provisions of National Tariff Policy, any increase in the Power Purchase
cost vis-å-vis power purchase cost approved by the Commission in the DISCOM's ARR/MYT Petition,
is to be recovered from consumers through FPPPA charges on quarterly basis.

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The Power Purchase cost for FY 2023-24 was approved by the Commission in the Tariff order dated
31.03.2023 based on actual power purchase cost of past year. There has been increase in power
purchase cost during FY 2023-24 on account of uncontrollable factors such as increase in fuel cost /
power purchase rate and change in generation mix etc. The FPPPA for FY 2023-24 is based on the
actual power purchase expenditure incurred and reflects increase in power purchase cost over the base
year power purchase cost along with partial past pending recovery of FPPPA.

Further, purchase of power from various sources on real time basis is done following the merit order
principle wherein power from various sources is scheduled in the ascending order of variable cost i.e.
power from cheaper sources is scheduled first and thereafter costlier power till the demand of
consumers is met on real time basis. Thus, the increase in power demand (power quantum) during FY
2023-24 necessitated operation of power plants having higher rank in merit order leading to marginally
higher cost of power for incremental quantum. Therefore, there is overall increase in power purchase
cost due to un-controllable factors. Otherwise, there is gain (reduction) in power purchase cost to the
due to efficiency improvement by discoms in terms of reduction distribution losses as compared to
approved losses. The Commission had approved the distribution loss levels for PGVCL at 15.75% for
FY 2023-24 and the actual loss achieved were 15.15% for FY 2023-24, which results in saving in
Power Purchase cost.

It is pertinent to mention that during FY 2023-24, there is a decrease of Rs.0.50/Unit in FPPPA charge
recoverable during Q4 FY 2023-24.

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.

Issue No. 113: Actual R&M Cost is higher than approved

The objector has stated that Actual R&M cost is double than approved and petitioner should submit
clarification for it

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Response of the Petitioner:

As regard to the deviation in expense it is to submit that, the major expense of Petitioner is on account
of purchase of power for supply of electricity to its consumers.

Repairs and Maintenance expenses are incurred towards the day-to-day upkeep of the distribution
network and form an integral part of the efforts towards reliable and quality power supply as also in the
reduction of losses in the distribution system. Repair and Maintenance expenditure is dependent on
various factors. Further, the Biparjoy Cyclone made a landfall in the State of Gujarat. PGVCL's property,
plant and equipment were damaged and accordingly power supply was disrupted in some parts of the
State. To mitigate the impact, PGVCL diverted much of its efforts in repair of damaged distribution
assets, especially distribution transformers. The Petitioner submitted that it has incurred Rs. 162.77
Crores relating to restoration of damages on account of the cyclone in FY 2023-24 and the same has
been included under Repair and Maintenance in FY 2023-24.

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.

Issue No. 114: Separate Head of Interest and Finance Charges

The stakeholder has asked for Separate Head for Interest charges and Finance Charges in order to get
the actual Finance Charge.

Response of the Petitioner:

The Petitioner has submitted the details in accordance with the approach adopted by the Commission
and as provided in MYT Regulations, 2016. Further, the detailed breakup of Interest and finance
charges is provided in the Petition under the head "Interest & Finance Charges".

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.

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Issue No. 115: Deviation in Income Tax

The objected has submitted that there is deviation in Income Tax approved amount of Rs. 37.95 crores
and actual tax paid of Rs. 489.21 Crores.

Response of the Petitioner:

The Petitioner submitted that there has been increase in sales quantum from approved 33,704 MU as
against 37,181 MU. There has been higher revenue recovery on account of increased sales quantum.

Additionally, there has been partial recovery in revenue towards past pending FPPPA recovery. Further,
there has been change in sales mix. In addition to the revenue from sales there is revenue on account
of other operating activities etc. Accordingly, the tax has been paid considering the actual revenue
recognized in annual accounts of Petitioner.

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.

Issue No. 116: Increase in Capital Expenditure

The stakeholder has submitted that there is a deviation in capex approved vs actual capex incurred by
the Petitioner.

Response of the Petitioner:

Scheme wise Capital Expenditure approved vis-a-vis actual expenditure incurred in different schemes
along with-it justification has been provided in the Petition.

There has been major deviation in few schemes such as (i) System Improvement Scheme on account
of renovation and replacement of old distribution lines, feeder bifurcation, installation, and
augmentation of distribution transformers (ii) Normal Development Scheme which mainly includes
work related to new connections, the estimation of same at the time of ARR for FY 2023-24 was based
on included and at the time of Tariff Petition filing, it is estimated based on the historical trends and
the estimated no. of connections.

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Further, Petitioner is obligated to supply / cater the requirement of existing as well as new applicants
/ consumers under Universal Supply Obligation (USO). Accordingly, the CAPEX under ND scheme
has increased as per the actual works and quantum undertaken by Petitioner.

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.

Issue No. 117: Reconsideration of projected sales

The objector has stated that projected sales by the Petitioner for the MYT control periods should be
re-considered based on the actual average of the last five years.

Response of the Petitioner:

The break-up of past sales and the CAGR growth rates for different periods (5 years, 4-Year, 3-year,
2-year, and year-on-year) are shown in the Petition which provides category-wise historical trend.

The Petitioner has calculated growth rates by considering FY 2023-24 as the base year for the
projections for the MYT control period from FY 2025-26 to FY 2029-30.

Further, the growth rates observed in the energy sold to each consumer category have been analyzed
for the purpose of sales projections for the MYT control period which forms the basis of forecasting
sales for each category.

While considering projection of sales for major categories viz. Residential, NRGP, LTMD, GLP &
Public water works, compounded annual growth rate (CAGR) of 5 years is considered and escalated
on base year FY 2023-24. Further, for Industrial HT category there has been variations in sales over
the past five years, largely due to the presence of open access, economic fluctuations, and other
external factors. For projecting units sold during the MYT control period, a subjective growth rate of
5% has been considered. The decision to use a subjective rate is based on a balanced assessment of
historical trends and the ongoing economic conditions.

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Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.

Issue No. 118: Energy requirement for FY 2025-26

The objector has submitted that energy requirement for FY 2025-26 is shown as 48219 MU while in
Table 49 of the Petition, total energy requirement is shown as 49716.95 MU. Hence there is a
noticeable difference between the two table which is in subsequent years also.

Response of the Petitioner:

The Petitioner submitted that table 50 of the Petition provides for the energy requirement of PGVCL
for FY 2025-26 excluding local purchase made by petitioner (i.e.48,229 MU), whereas in Table No.
49 provides the consolidate energy requirement including local power purchase.

It is to further mention that, power is procured by GUVNL from various sources on behalf of all
DISCOMs under the BST mechanism, accordingly the total energy requirement excluding local
purchase from all DISCOMs is stipulated in table 50 of the Petition.

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.

Issue No. 119: Purchase rate from Solar Projects

The objector has submitted that the rate of purchase from solar projects is same while the Petitioner
has paid Rs. 464.55 Crore for 937.32 MU to solar projects -SSDSP. The objector suggested that the
Petitioner should consider power banking as well as purchase from Electricity Power Exchange.

Response of the Petitioner:

As regard to the procurement of power from local sources of around Rs 464.55 Crores for FY 2026-
27, it is to clarify that the amount of local purchase of Rs 464.55 includes generation from existing

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sources in addition to above it includes additional tie up for respective year. Accordingly, for FY 2026-
27 the total local purchase is around 2435 MU (1498 MU: generation from existing local sources +
937 MU: projected generation from new sources during FY 2026-27).

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 120: Time of Usage Charge

The objector submitted that the Petitioner has proposed for levy of new charge of Rs. 0.45/kwh as time
of usage charge to be levied on NRGP, LT and HT Electric vehicles. The stakeholder submitted that
by levying this micro, small and cottage industries will be badly affected. The central government is
giving incentives for usage of Electric vehicle while levying Time of charges will be
counterproductive. The objector added that the Petition doesnot reflect growth of RE in the State, while
neighbouring state are offering incentives to RE power.

Response of the Petitioner:

The Petitioner submitted that there is paradigm shift in generation profile and energy mix of discom
on account of inclusion of RE generation i.e. particularly solar generation. Moreover, Gujarat is blessed
with huge solar potential and it is obligation on part of discoms to accommodate more RE power and
fulfill the renewable power purchase obligation.

Therefore, in given scenario, the cost of power during certain day hours has reduced with availability
of solar power and the cost of power during other hours has increased on account of increase in fuel
prices along with minimal availability of RE power during other hours.

Thus, to align with the generation profile, optimize the power purchase cost and to comply as per
directives given by Central Government Ministry of Power as "Electricity Rights of Consumer Rules-
2023", Time of Use (TOU) charges is proposed for Commercial and Industrial consumers under NRGP
consumer category in line with LTMD and HTP-I consumer category.

It is important to note that, envisaging RE power tie-up and to promote utilization of RE power, it is
proposed to offer concession of Rs 0.45/unit in energy charge as TOU Discount in FY 2025-26 for

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consumption of Electricity from 11:00 Hrs to 15:00 Hrs for various consumer categories including
NRGP & LTMD consumer.

Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 121: Wheeling Charge

The objector has stated that there is no mention of Wheeling Charge which are unrealistic though
approved by the Commission

Response of the Petitioner:

The Petitioner submitted that as per Section 86 of the Electricity Act, 2003, State Electricity Regulatory
Commission (GERC in case of State of Gujarat) shall determine the wheeling charges and surcharge,
if any, for the said category of consumers.

Accordingly, based on the energy input and distribution cost at relevant voltage level, Commission
determines wheeling charges applicable for relevant category of consumers.

Commission’s View:
The Commission has noted the response of the Petitioner and has dealt with the issue in the respective
section of the Tariff Order.

Issue No. 122: Billing Period for HT and EHT Consumers

The objector has submitted that there is difference in the billing period of HT and EHT consumers.

Response of the Petitioner:

The Petitioner submitted that as per GERC Supply Code billing period refers to the nominal period
between two consecutive meter reading dates. It may be monthly or any other period as may be adopted
by the Distribution Licensee. However, this shall not be less than one calendar month and more than
two calendar month.

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Further billing period of HT and EHT consumers are fixed considering various factors such as cash
requirement of discom etc. to fulfill payments liability for running day to day activity of distribution
business of discom.

In case if the discoms simultaneously bill according to monthly billing, the administrative process like
meter reading, cash collection, and its accounting etc. will increase and the burden will be directly on
the electricity consumers. Thus, with a view to reducing these administrative costs and other concerns,
billing of consumer is segregated.

Also, FPPPA is computed and implemented on quarterly basis as per GERC directives and consumers
are billed on pro rata basis.
Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 123: SCADA Monitoring

The stakeholder has submitted that all the transformer centers are provided with energy meters for
SCADA monitoring. But the lack of will by the management is restricting any positive steps of
collecting data and analyses the same to take effective steps to reduce the loss by some percentage at
least. The years and years are going with disguise of installation and contract execution by agencies
managing SCADA, no data is released by the petitioner. It seems to be a criminal conspiracy of the
respondent not to release the actual information to public.

Response of the Petitioner:

Distribution SCADA (Supervisory and Data Control Systems) helps in plugging pilferage points,
better power supply management through faster identification of faults & early restoration, proper
metering, strategic placement of capacitor banks & switches and proper planning & designing of
distribution networks. SCADA is to be implemented through SCADA Implementation Agency (SIA).
SIA was to be finalized in consultation with PFC. SCADA implementation Progress is reviewed,
monitored and shared with PFC. As per present status, SCADA shall be implemented by September,
2026.

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Commission’s View:
The Commission has noted the response of the Petitioner.

Issue No. 124: Penalty Charge for Excess Contract Demand in case of HTP 1 Category.
The stakeholder has stated that Penalty Charge for Excess Contract Demand in case of HTP-1
Category. The demand charges of excess demand should be in terms of percentage increase of the
regular demand charges. 20 % should be a reasonable figure.

Response of the Petitioner:

Suggestion to link the excess demand charges to the normal demand charges based on its contract
demand is not logical as any consumer using load excess to its contract demand causes the same effect
on the Distribution System irrespective of its contract demand, therefore excess demand charges
should not link with the normal demand charges.

Commission’s View:
The Commission has noted the response of the Petitioner.

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4. Truing up of FY 2023-24
This Chapter deals with the truing up of FY 2023-24.

PGVCL, in its submission for True-up of FY 2023-24, has furnished details of the actual energy
sales, expenditure and revenue based on the audited Annual Accounts for FY 2023-24. The Licensee
has stated that the truing up for FY 2023-24 is based on the comparison of the actual performance of
FY 2023-24 with the ARR approved for FY 2023-24 in the Tariff Order dated 31st March 2023 to
arrive at the Gains/(Losses), as per the GERC (MYT) Regulations, 2016.

The Commission has analysed the components of the actual energy sales, expenses, revenue, and
computed Gains/ (Losses) in the process of truing up for FY 2023-24.

4.1 Energy Sales

Petitioner’s Submission

The actual category wise sales for FY 2023-24 were 37,181.02 MUs as against the approved
sales of 33,704.40 MUs. The actual sales for FY 2023-24 are higher than approved sales in
the both the LT consumer categories and industrial category leading to overall increase in the
sales in FY 2023-24 over the approved levels.

The table below highlights the comparison of actual category wise sales of PGVCL against
that approved by the Commission vide its Tariff Order.

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Sales (MUs)
Sr. No. Particulars FY 2023-24 FY 2023-24
(Approved) (Actual)
6 Agriculture – Unmetered 4,686 4,766
7 Street Lighting - -
8 EV Charging 14
LT Total (A) 17,695.00 19,433.31
B HT Consumers
8 Industrial HT 15,993 17,748
9 Railway - -
10 EVCS 16
HT Total (A) 16,009.00 17,747.71
Grand Total (A + B) 33,704.40 37,181.02

Commission’s Analysis

The Commission, in the Tariff Order dated 31st March, 2023, had approved the energy sales of
33,704.00 MUs for FY 2023-24 against which, PGVCL has submitted the actual sales of 37,181.02
MUs.

Overall, the actual energy sales of PGVCL are higher as compared to that approved in the Tariff
Order dated 31st March, 2023. As energy sales are largely uncontrollable in nature, the Commission
approves the actual energy sales as detailed in the table below.

Table 4-1: Energy sales approved in truing up for FY 2023-24 (MU)

Approved Actual
Approved
in the Claimed
S. No. Particulars after
Tariff in Truing
Truing Up
Order Up
A LT Consumers
1 RGP 4,236 4,274 4,274
183 217
2 GLP
217

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Approved Actual
Approved
in the Claimed
S. No. Particulars after
Tariff in Truing
Truing Up
Order Up
3 Non-RGP & LTMD 4,747
4,221 4,747
4 Public Water Works
651 841 841
5 Agriculture- Unmetered
3,703 4,589 4,589
6 Agriculture-Metered
4,686 4,766 4,766
7 Public Lighting - - -
8 Electric Vehicle Charging 14 - -

LT Total (A)
17,695.00 19,433.31 19,433.31
B HT Consumers

9 Industrial HT
15,993 17,748 17,748
10 Railway Traction 8.00 13.00 13.00
11 Electric Vehicle Charging 16 - -

HT Total (B)
16,009.00 17,747.71 17,747.71
Grand Total (A+B)
33,704.40 37,181.02 37,181.02

Distribution Losses

Petitioner’s Submission

In FY 2023-24, the actual distribution losses were 15.15% as against the approved level of
15.75%. The table below highlights the comparison of actual distribution losses of PGVCL
against that approved by the Commission vide its Tariff Order.
Table 4-2: Distribution Losses for FY 2023-24 as submitted by PGVCL (%)
FY 2023-24 FY 2023-24
Sr. No. Particulars
(Approved) (Actual)
1 Distribution Losses 15.75% 15.15%

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The GERC MYT Regulations, 2016 categorise the Distribution Losses as a controllable factor and
accordingly any gain or loss on account of this would be shared with the consumers as per the
provisions of the regulations.

The Commission had approved the distribution loss levels for PGVCL at 15.75% for FY 2023-24
and the actual loss achieved were 15.15% for FY 2023-24. PGVCL meet the targets set by the
Commission.

Since the Petitioner has losses lower than those approved by the Commission, its impact has been
discussed in the section relating to power purchase and the gains/ (losses) have been accounted
appropriately.

Commission’s Analysis

The petitioner has submitted that the actual distribution losses are 15.15% against 15.75% approved
in the Tariff Order dated 31st March 2023. The Commission finds that the reason for reduction in
distribution loss is mainly attributable to increase in consumption of industrial consumers during FY
2023-24. Further, other reasons have also been noted by the Commission. Considering the actual
sales of 37,181.02 MUs, the Distribution Loss in FY 2023-24 works out to 15.15%.

The Commission considers Distribution Losses as controllable as per the GERC (MYT) Regulations,
2016. Accordingly, the Commission has considered the Distribution Losses of 15.15% as shown in
the Table below for computation of Gain/(Loss) due to variance in Distribution Losses:

Table 4-3: Distribution Losses approved for truing up for FY 2023-24 (%)
Approved in the Actual Approved in
Particulars
Tariff Order Claimed True Up
Distribution Losses (%) 15.75% 15.15% 15.15%

4.2 Energy Requirement and Energy Balance

Petitioner’s Submission

The gross energy requirement of PGVCL is as follows given in the table below:

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Table 4-4: Energy Requirement and Energy Balance submitted by PGVCL for FY 2023-24
FY 2023-24 FY 2023-24
S.No. Particulars Unit
(Approved) (Actual)

1 Energy Sales MUs 33,704 37,181.02

2 Distribution Losses MUs 6,301 6,636.65

% 15.75% 15.15%

3 Energy Requirement MUs 40,004.75 43,817.67

Less: Local Power Purchase by Discom (Net of sale MUs 291 664.27
4
to KPT)

5 Power Purchase at T<>D periphery from GUVNL MUs 39,714 43,153

6 Transmission Losses MUs 1,483 1,506.40

% 3.60% 3.3731%

7 Total Energy to be input to Transmission System MUs 41,197 44,659.80

8 Pooled Losses in PGCIL System MUs 869 797.13

9 Add: Local Power Purchase by Discom MUs 291 664.27

10 Total Energy Requirement MUs 42,357 46,121.20

The gross energy requirement for sale to the consumers in FY 2023-24 is 46,121.20 MUs as
compared to 42,357 MUs as approved by the Commission. The increase in energy requirement
is primarily on account of higher energy sales during the year as compared to the approved
sales.

Commission’s Analysis

PGVCL has computed the energy requirement based on the actual Distribution Losses of 15.15%,
actual energy sales of 37,181.02 MUs and Transmission Losses of 3.37%.

In reply to query on PGCIL system losses of 797.13 MU, PGVCL submitted that PGCIL system pooled
losses are worked out as per the weekly Pooled Losses notified by WRLDC for the energy scheduled
by WRLDC through CTU for FY 2023-24.

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The Commission had approved the distribution losses of 15.75% and the transmission losses of
3.60% in the Tariff Order dated 31st March, 2023. The Commission has worked out the energy
requirement of 46,121.21 MUs after truing up of FY 2023-24, considering the actual Distribution
Loss of 15.15% and actual intra-State Transmission Loss of 3.37%, as shown in the Table below.

Table 4-5: Energy Requirement approved by the Commission in truing up for FY 2023-24

Actual
Approved Approved
Claimed
S. No. Particulars Unit in the Tariff in Truing
in Truing
Order Up
up
1 Energy Sales MU 33,704.00 37,181.02 37,181.02
MU 6,300.75 6,636.65 6,636.65
2 Distribution Losses
% 15.75% 15.15% 15.15%
3 Energy Requirement MU 40,004.75 43,817.67 43,817.68
4 Local Power Purchase by DISCOM MU 291.00 664.27 664.27
Power Purchase at T&D periphery from
5 MU 39,713.75 43,153.40 43,153.41
GUVNL
MU 1,483.08 1,506.40 1,506.40
6 Transmission Losses
% 3.60% 3.37% 3.37%
Total Energy to be input to Transmission
7 MU 41,196.83 44,659.80 44,659.81
System
8 Pooled Losses in PGCIL System MU 869.00 797.13 797.13
9 Add: Local Power Purchase by Discom MU 291.00 664.27 664.27
10 Total Energy Requirement MU 42,356.83 46,121.20 46,121.21

4.3 Power Purchase Cost

Petitioner’s Submission

The company has been currently allocated share of generation capacities as per the scheme
worked out by GUVNL. In order to minimize power purchase cost, GUVNL adopts the Merit
Order Despatch principles for despatching power from the generating stations based on the
demand and accordingly power gets allocated to PGVCL.
The actual power purchase from GUVNL is different from allocation because the demand
from PGVCL is not constant and it varies from time to time.

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The total power purchase cost of PGVCL for FY 2023-24 consists of the basic power purchase
cost, transmission charges payable to GETCO and PGCIL, SLDC charges and the DISCOM’s
share. In the FY 2023-24, GUVNL has made new provisions of Rs. 1,224.19 Crore towards
power purchase related liabilities towards various generators. There was no actual utilisation
against such liabilities in FY 2023-24. Accordingly, the net amount of Rs. 1,224.19 crore will
be allocated to each of the DISCOM in the ratio of their actual power purchase which is also
in line with approach taken by the Commission in the past.
Allocation of provisions to DISCOM is as under:
Table 4-6: Allocation of Provisions of Power Purchase Cost to DISCOMs for FY 2023-24 (Rs.
Crore)
Particulars DGVCL MGVCL PGVCL UGVCL Total
Power Purchase 21,057.69 7,991.22 22,356.15 16,887.38 68,292.44
Allocation of provisions made in 377.47 143.25 400.75 302.72 1224.19
Power Purchase Cost

Based on the same, the comparison of the approved and the actual cost of power purchase are as
shown below:
Table 4-7: Net Power Purchase Cost as submitted by PGVCL for FY 2023-24 (Rs. Crore)
FY 2023-24 FY 2023-24
Sr. No. Particulars
(Approved) (Actual)
A Cost
1 Power Purchased from GUVNL 22,322.09
2 Power purchase from Windfarm 10.62
3 Power Purchased from Solar 169.59
4 Purchase of Power from Hydel Plants & Renewable Attribute 3.14
5 SLDC Charges 6.32
6 Reactive energy charges 1.60
Total Cost 22,513.36
B Less: Income
1 Allocation of provisions made in Power Purchase Cost 400.75

2 DSM Income Receivable 155.61

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FY 2023-24 FY 2023-24
Sr. No. Particulars
(Approved) (Actual)
Net Power Purchase Cost 18,791.77 21,957.00

The variation in the approved and the actual power purchase expenses is on account of various
reasons including change in approved cost of power, change in quantum of power purchased,
changes in the transmission charges payable, etc. In FY 2023-24 there was increase in
electricity demand throughout the country. Further, there has been unprecedented rise in prices
of coal and gas at international levels on account of which there has been noticeable increase
in cost of power purchase leading to increase in overall power purchase cost in FY 2023-24.
The quantum of power purchase depends upon the sales during the year as well as the losses
in the system. The actual distribution losses in PGVCL distribution network have been
marginally lower than the approved level and the sales have been higher than the approved
sales. Hence, the quantum of power purchased was higher than the approved quantum of
power required.
As per the GERC MYT Regulations, 2016, the Commission has categorised the variation in
the price of fuel and/or price of power purchase according to the FPPPA formula approved by
the Commission as an uncontrollable factor. Further, the Commission has also identified the
variation in the number or mix of consumers or quantity of electricity sold to consumers as an
uncontrollable factor. Thus the variation in the above factors affects the power purchase
expenses and results into either a loss or gain. Accordingly, any gain or loss on this account
is to be entirely passed on to the consumers as per the methodology approved by the
Commission.
Table 4-8: Gain/ (Loss) on account of Distribution Losses for FY 2023-24 as submitted by PGVCL
FY 2023-24 FY 2023-24
(with Approved (with Actual
Particulars Unit
Distribution Distribution
Losses) Losses)
Energy Sales MUs 37,181.02 37,181.02
Distribution Losses MUs 6,950.76 6,636.65
% 15.75% 15.15%
Energy Requirement MUs 44,131.78 43,817.68
Saving due to Distribution Losses MUs 314.10

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FY 2023-24 FY 2023-24
(with Approved (with Actual
Particulars Unit
Distribution Distribution
Losses) Losses)
Average Power Purchase Cost Rs./Unit 4.76
Gain/(Loss) due to Dist. Losses 149.53

As can be seen from the above, the total gain/(loss) on account of lower distribution losses as
compared to approved is Rs. 149.53 Crores. This gain/(loss) is categorised as on account of
controllable factors and the appropriate treatment is given below:

Table 4-9: Gains / (Loss) - Power Purchase Expenses for FY 2023-24 (Rs. Crore)
Gain/(Loss) Gain/(Loss)
FY 2023-24 FY 2023-24 due to due to
Particulars
(Approved) (Actual) Controllable Uncontrollable
Factor Factor
Total Power Purchase Cost 18,791.77 21,957.00 149.53 (3,314.76)

Thus, as can be seen from the above table, the power purchase gain/(loss) due to controllable
& uncontrollable factors are Rs. 149.53 Crores and Rs. (3,314.76) Crores respectively which
would have to be passed on to the consumers as per the methodology approved by the
Commission.

Commission’s Analysis

The Commission has examined the power purchase cost during FY 2023-24 based on the audited Annual
Accounts of PGVCL. Further, the Commission observed from the Annual Accounts of GUVNL,
wherein it is stated that the power purchased from the Generators (State Owned, Independent Power
Producers, Central Sector and others) is accounted as per the provisions of PPAs and / or Orders issued
by the appropriate Commission. Further, total power purchase cost of PGVCL for FY 2023-24 consists

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of the basic power purchase cost, transmission charges payable to GETCO and PGCIL, SLDC charges
and DSM Charges.

Furthermore, the Commission had asked PGVCL to provide details of Rs. 400.75 Cr out of the total
provision of Rs. 1,224.19 Cr made by GUVNL towards power purchase cost related liabilities towards
various generators by GUVNL.

PGVCL replied that that the power purchase expenses related provisions are accounted in the books of
accounts of GUVNL in accordance with the prevailing accounting standards. Thus, as per standard
business practices and on best estimation basis, provisions were created in books of accounts towards
the amount decided, accrued, and quantified by various forums and while there was immediate liability
to pay but due to pendency of matters in higher forum and disputes involved, the amount is not being
claimed as an expense in truing up for FY 2023-24 as per the principle adopted by the Commission in
past years tariff petition and the same shall be claimed upon actual utilisation/realisation in subsequent
year as part of power purchase expense.

Accordingly, provisions of around Rs. 400.75 Cr had been allocated to PGVCL on account of aforesaid
reasons for FY 2023-24.

The net impact of Rs. 21,957.00 Cr (i.e. Rs. 22,357.75 Cr – Rs. 400.75 Cr) had been apportioned as a
part of power purchase expense and the same is part of GUVNL’s Annual Accounts.

In response to the query about reconciliation of power purchase cost with FPPPA submissions and
additional surcharge submission, the Petitioner submitted that as per the directive of the Commission,
the claim in FPPPA submission is based on actual payment made during respective quarter which do
not include un-discharged liability / provisions etc. but includes the amount which is paid during the
quarter for which liability is accrued and booked as expenditure in the Books of previous year. Whereas
Annual Accounts are prepared on accrual basis as per the Indian Accounting Standards (IND-AS) which
includes undischarged liabilities / provisions on account of matters pending in various courts and
estimated as per the orders of competent courts / best assessment basis. Further, there are other reasons
for variation in power purchase cost as per FPPPA submissions and power Purchase cost as per Books
such as (i) amount claimed / credited in FPPPA on actual payment basis but part of previous year account
(ii) increase / decrease in the final bill amount after FPPPA submissions (iii) amount accounted in FY
2023-24, but payment is made in subsequent period and therefore not part of FPPPA of FY 2023-24 etc.

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The reconciliation of power purchase cost claimed in the FPPPA submissions vis-à-vis Books of FY
2023-24 is as under:

Table 4-10 Reconciliation of power purchase cost between FPPPA submissions & Books (Rs.
Crore)
Particulars Amount
(Rs. Crore)
Power Purchase Cost as per FPPPA 69,717.86
Less: GUVNL cost & SLDC charges (being not part of Book cost) 532.35
Add: Provisions made in Books 1,224.19
Add: Power Purchase from DISCOMs for sale through Exchange 42.14
Net Adjustments towards:

Add: Adjustment towards prior period expense 68.00

Less: Amount claimed / credited in FPPPA on actual payment basis but part of previous
532.48
year books
Add: Increase / decrease in the final bill amount paid & booked in Annual Accounts after
-24.85
FPPPA submission for respective quarter
Total 69,962.50
Power Purchase cost as per Books 69,962.50

As regard to fixed power purchase cost as per Additional Surcharge submission vis-à-vis books, the
Petitioner has clarified that, similar to FPPPA submission, in respect of additional surcharge, the power
purchase cost (fixed cost) is claimed on actual payment basis without considering provisions made in the
books but including actual payment made towards previous years provisions etc. The reconciliation of
power purchase cost (fixed cost) as per books viz-a-viz additional surcharge submission is as under:

Table 4-11 Reconciliation of power purchase cost (fixed cost) between additional surcharge
submissions & Books (Rs. Crore)
Amount
Particulars
(Rs. Crore)
Fixed cost as per Additional Surcharge submission 15,170
Add: Transmission cost provided in books (not part of AS submission) 8,215
Add: Net adjustments towards:
(i) increase / decrease in the final bill amount after AS submission 23
(ii) Provisions made in FY 2022-23 subsequent to AS submission
Total 23,407

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Amount
Particulars
(Rs. Crore)
Fixed cost as per Petition 23,407

The Petitioner in response to query about treatment of rebate received for timely payment of
Generation Companies & Transmission Service Providers, submitted that GUVNL has earned total
rebate of around Rs. 1,088.97 Crore towards timely payment of generating companies and the same
is passed on to DISCOMs while allocating power purchase costs along with revenue of Rs. 62.86
Crore earned from sale of power to others (exchange, bilateral agreements, GACL etc)., as under:

Table 4-12 Statement of Rebate earned during FY 2023-24 (Rs. Crore)

Amount
Particulars
(Rs. Crore)
Power Purchase Cost of GUVNL as per books 69,963
Less: Revenue earned from sale of Power to others (exchange, 63
bilateral, GACL)
Power Purchase Cost for DISCOMs 69,900
Less: Rebate earned 1,089
Less: Other income 1,233
Add; GUVNL Trading Margin 497
Net Power Purchase Cost of GUVNL to be allocated to DISCOMs 68,074
Actual Power Purchase Cost allocated to DISCOMs 68,074

From the responses of PGVCL, the Commission noted that DISCOMs have not considered the amount of
Rs. 1,224.19 Crore in the Books and in the petition as power purchase cost in approach to previous Tariff
Orders. Accordingly, the Commission has reduced the amount of Rs. 1,224.19 Crore from power purchase
cost for each DISCOM in the same ratio considered by DISCOMs as shown in the Table below:

Table 4-13 Allocation of Additional Provisions considered by the Commission in Power Purchase
Cost (Rs. Crore)
Particulars DGVCL MGVCL PGVCL UGVCL Total
Power Purchase 21,057.69 7,991.22 22,356.15 16,887.38 68,292.44
Allocation of provisions
made in Power Purchase (377.47) (143.25) (400.75) (302.72) (1,224.19)
Cost

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Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

The net Power Purchase Cost after truing up for PGVCL for FY 2023-24 works out to Rs. 20,679.18
Crore, as shown in the Table below:

Table 4-14: Power Purchase Cost approved in truing up for FY 2023-24 (Rs. Crore)
Sr. Approved in the Actual Claimed Approved in
Particulars
No. Tariff Order in Truing up Truing up
A Cost

1 Power Purchased from GUVNL 22,322.09 22,322.09

2 Power purchase from Windfarm 10.62 10.62
3 Power Purchased from Solar 169.59 169.59
Purchase of Power from Hydel Plants 3.14 3.14
4
& Renewable Attribute

5 SLDC Charges 6.32 6.32

6. Reactive Energy Charge 1.60 1.60
Total Cost 22,513.36 22,513.36
B Less: Income
Allocation of provisions made in 400.75 400.75
1
Power Purchase Cost

2 DSM Income Receivable 155.61 155.61

Net Power Purchase Cost 18,791.77 21,957.00 21,957.00

The Commission had approved Distribution Losses at 15.75% for FY 2023-24 in the Tariff Order
dated 31st March 2023, against which PGVCL has achieved Distribution Losses of 15.15%. As
stated earlier, the actual Distribution Losses in PGVCL distribution network have been lower than
the approved level. The variation in power purchase quantum and cost due to variation in
Distribution Loss is a controllable factor, which would result in gain/(loss) under the GERC MYT
Regulations, 2016.

The calculation of the gain/(loss) on account of the controllable factor of Distribution Losses, as
approved by the Commission in the Truing up for FY 2023-24, is shown in the Table below:

Table 4-15: Approved Gain/ (Loss) on account of Distribution Losses for FY 2023-24 (Rs. Crore)

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March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

With Approved
S. Actual Claimed Approved in
Particulars Unit Distribution
No. in Truing up truing up
Losses

1 Energy Sales MU 37,181.02 37,181.02 37,181.02

MU 6,950.76 6,636.65 6,636.65
2 Distribution Losses
% 15.75% 15.15% 15.15%
3 Energy Requirement MU 44,131.78 43,817.68 43,817.68
Gain/(Loss) due to 314.10 314.10
4 MU
Distribution Losses

Average Power Purchase Rs. 4.76 4.76

5
Cost /kWh
Gain/(Loss) due to 149.53 149.53
6
Distribution Losses

While computing the Gain/ (Loss) due to change in Distribution Losses, the Commission has
considered the Distribution Losses at 15.15% of actual energy sales to arrive at change in energy
requirement at the distribution periphery and has not considered the Transmission Losses to factor
the efficiency of distribution activities only.

The Commission has considered change in power purchase cost attributable to the variation in cost
and quantum of power due to variation in sales and transmission losses as uncontrollable.

Accordingly, the total Gain/(Loss) computed on account of power purchase is shown in the Table
below:

Table 4-16: Approved gain / (loss) in power purchase expenses in truing up for FY 2023-24 (Rs.
Crore)
Approved in Gain/(Loss) due to Gain/(Loss) due to
Approved in Deviation +
Particulars the Tariff Controllable Uncontrollable
Truing up (-)
Order Factors Factors
Total Power
18,791.77 21,957.00 (3,165.23) 149.53 (3,314.76)
Purchase Cost

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March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

Fixed Cost

The fixed cost of PGVCL for FY 2023-24 has been determined in accordance with the GERC MYT
Regulations, 2016. As outlined under the Regulations, the fixed cost for MGVCL has been
determined under the following major heads:

• Operation and Maintenance Expenses

• Depreciation
• Interest and Finance Charges
• Interest on Working Capital
• Income Tax
• Return on Equity
Net Annual Revenue Requirement of PGVCL has been computed after netting off expenses
capitalized and Non-Tariff Income.

The Petitioner has submitted that for the purpose of True-Up, all the heads mentioned above have
been categorized into Controllable or Uncontrollable in line with provisions of GERC MYT
Regulations, 2016. A head wise comparison of cost has been made between the values approved
by the Commission vide Tariff Order dated 31st March’ 2023 and the actual expenses of PGVCL
in FY 2023-24.

Operation and Maintenance (O&M) Expenses

PGVCL has claimed O&M Expenses of Rs. 1,872.42 Crore, which is inclusive of Employee Cost
of Rs. 1,429.32 Crore, Repairs & Maintenance (R&M) Expenses of Rs. 407.33 Crore,
Administration & General (A&G) Expenses of Rs. 279.49 Crore and Other Expenses Capitalized
of Rs. (243.73) Crore against the approved O&M Expense of Rs. 1,664.49 Crore, as per the details
given in the Table below:

Table 4-17: Actual O&M Expenses incurred as submitted by PGVCL for FY 2023-24 (Rs. Crore)
FY 2023-24 FY 2023-24
Sr. No. Particulars Deviation
(Approved) (Actual)

1 Employee Cost 1,257.82 1,429.32 (171.50)

2 Repair & Maintenance 201.61 407.33 (205.72)

3 Administration & General Charges 227.30 279.49 (52.19)

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March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

FY 2023-24 FY 2023-24
Sr. No. Particulars Deviation
(Approved) (Actual)
4 RDSS Metering Opex 297.90 - 297.90

5 Other Expenses Capitalised (320.14) (243.73) (76.41)

6 Operation & Maintenance Expenses 1,664.49 1,872.42 (207.93)

Table 4-18:Treatment of Operation & Maintenance Expenses (Rs. in Crore)

Gain/(Loss) due to Gain/(Loss) due to

Sr. FY 2023-24 FY 2023-24
Particulars Controllable Uncontrollable
No. (Approved) (Actual)
Factor Factor
1 Employee Expenses 1257.82 1429.32 (50.17) (121.34)
2 Repair & Maintenance Cost 201.61 407.33 (42.95) (162.77)
Administration & General 227.30 279.49 (42.77) (9.42)
3
Charges
4 RDSS Metering Opex 297.90 - - 297.90

4 Other Expenses Capitalised (320.14) (243.73) - (76.41)

5 Total O&M Expenses 1664.49 1872.42 (135.89) (72.03)

Employee Cost

PGVCL has claimed employee cost of Rs. 1,429.32 Crore in the truing up for FY 2023-24. The
employee cost approved for FY 2023-24 in the Tariff Order dated 31st March 2023 and claimed by
PGVCL in the truing up are given in the Table below:

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March 2025
Paschim Gujarat Vij Company Limited
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Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

Table 4-19: Employee Cost for FY 2023-24 as submitted by PGVCL

Gain/(Loss) Gain/(Loss)
FY 2023-24 FY 2023-24 due to due to
Sr. No. Particulars
(Approved) (Actual) Controllable Uncontrollable
Factor Factor

1 Employee Cost 1,257.82 1,429.32 (50.17) (121.34)

Petitioner’ Submission

Employee expenses comprise of salaries, dearness allowance, bonus, terminal benefits in

the form of pension & gratuity, leave encashment and staff welfare expenses.
The employee cost incurred by the company is purely on the basis of the guidelines issued
by competent authorities like the State Government. PGVCL has claimed other
comprehensive income of Rs. 78.02 Crore. Along with it, PGVCL has identified Impact of
implementation of 7th Pay Revision i.e. Rs 121.34 Crores under uncontrollable expense and
hence, these expenses have also been considered as uncontrollable expenses. The net
employee expenses claimed by PGVCL for FY 2023-24 are Rs. 1,429.32 Crore. Employee
expenses are considered as controllable expenses under the provisions of the GERC MYT
Regulations, 2016.
Accordingly, Commission is requested to kindly approve the above deviation under the
head of Employee expense

Commission’s Analysis

PGVCL has claimed actual employee cost of Rs. 1,429.32 Crore for FY 2023-24 as against Rs.
1,257.82 Crore approved in the Tariff Order dated 31st March 2023. The Commission has verified
the actual employee expenses from the audited Annual Accounts of PGVCL. The actual employee
expenses claimed by PGVCL includes Rs. 121.34 Crore towards impact of 7th Pay revision and
other comprehensive income of Rs. 78.02 Crore. Further, the Petitioner has requested to consider
Rs 121.34 Crore pertaining to 7th Pay Commission related expenses for FY 2023-24 under
uncontrollable head.

Gujarat Electricity Regulatory Commission Page 132

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

The Commission considers the employee cost as a controllable expense, in accordance with the
GERC (MYT) Regulations, 2016 except impact of Rs. 121.34 Crore (65.71+22.52+14.39+18.72)
in respect to impact of 7th Pay Commission Order.

The Commission has verified the Employee Expenses of PGVCL from the Annual Accounts of FY
2023-24 and accordingly, approves the employee cost at Rs. 1,429.32 Crore in the truing up for FY
2023-24, with the sharing of Gains/(Losses) as shown in the Table below:

Table 4-20: Employee Cost approved in the truing up for FY 2023-24 (Rs. Crore)
Gain/(Loss) due
Gain/(Loss) due
S. Approved in Approved in to
Particulars to Controllable
No. Tariff Order Truing Up Uncontrollable
Factors
Factors

1 Employee Cost 1,257.82 1,429.32 (50.17) (121.34)

Repairs & Maintenance (R&M) Expenses

PGVCL has claimed R&M expenses of Rs. 407.33 Crore in the truing up for FY 2023-24. The
R&M expenses approved for FY 2023-24 in the Tariff Order dated 31st March, 2023 and claimed
by PGVCL in the truing up are as given in the Table below:

Table 4-21: Repair & Maintenance Cost as submitted by PGVCL for FY 2023-24
Gain/(Loss) Gain/(Loss)
FY
FY 2023-24 due to due to
Sr. No. Particulars 2023-24
(Approved) Controllable Uncontrollable
(Actual)
Factor Factor

1 Repair & Maintenance Cost 201.61 407.33 (42.95) (162.77)

Petitioner’s Submission

The Petitioner has submitted that Repairs and Maintenance expenses are incurred towards the day-
to-day upkeep of the distribution network and form an integral part of the efforts towards reliable
and quality power supply as also in the reduction of losses in the distribution system.
Repair and Maintenance expenditure is dependent on various factors. The assets of PGVCL
are old and require regular maintenance to ensure uninterrupted operations. PGVCL has

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March 2025
Paschim Gujarat Vij Company Limited
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Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

been trying its best to ensure uninterrupted operations of the system and accordingly has
been undertaking necessary expenditure for R&M activities. The GERC MYT Regulations,
2016 provides for R&M expenditure as a controllable expenditure. However, the Biparjoy
Cyclone made a landfall in the State of Gujarat. PGVCL’s property, plant and equipment
were damaged and accordingly power supply was disrupted in some parts of the State. To
mitigate the impact, PGVCL diverted much of its efforts in repair of damaged distribution
assets, especially distribution transformers. PGVCL has incurred Rs. 162.77 Crore relating
to restoration of damages on account of the cyclone in FY 2023-24 and the same has been
included under Repair and Maintenance in FY 2023-24. Considering the nature of this
expenditure, PGVCL requests the Commission to consider the same under uncontrollable
expenses for the purpose of sharing of gains / losses.
Accordingly, on the basis of comparison of actual R&M expenditure of Rs. 201.61 Crore
of PGVCL with the values approved by the Commission, there is a gain/(loss) of Rs.
(205.72) Crores which is being claimed under controllable and uncontrollable factor as
indicated in the table below:
Commission’s Analysis

The R&M expenses incurred during FY 2023-24 are Rs. 407.33 Crore, as per the audited Annual
Accounts. The actual R&M expenses incurred by PGVCL are greater than the amount approved in
the Tariff Order dated 31st March, 2023. The R&M expenses are a controllable item of expenditure
under the GERC (MYT) Regulations, 2016. The Commission observed that PGVCL has claimed
an amount of Rs. 162.77 Crore relating to restoration of damages on account of the cyclone
Biparjoy in FY 2023-24. Also, it may be noted that Rs. 430 Crore were approved as uncontrollable
expenses during true up of FY 2021-22 due to R&M Expenses on account of cyclone damages. It
is observed by the Commission from the Audited Accounts submitted by the Petitioner that during
FY 2023-24, PGVCL has received subsidy of Rs 200 Cr against the expenses incurred during FY
2021-22 for cyclone damage restoration work. Since the entire amount of Rs 430 Cr was passed on
as an uncontrollable R&M Expense during FY 2021-22, the subsidy of Rs 220 Cr received against
the same expenses of Rs 430 Cr during FY 2023-24, the Commission reduced the actual R&M
Expenses to Rs 187.33 Cr (407.33 – 220) in truing up of FY 2023-24 and accordingly worked out
the gain/ (loss) as below:

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March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

Table 4-22: R&M Expenses approved for the truing up for FY 2023-24 (Rs. Crore)
Gain/(Loss)
Gain/(Loss) due
S. Approved in Approved in due to
Particulars to Uncontrollable
No. Tariff Order Truing Up Controllable
Factors
Factors

1 R&M Expenses 201.61 187.33 (42.95) 57.23

Administration & General (A&G) Expenses

PGVCL has claimed A&G expenses of Rs. 279.49 Crore in the truing up for FY 2023-24. The A&G
expenses approved for FY 2023-24 in the Tariff Order dated 31st March 2022 and claimed by PGVCL in
the truing up are given in the Table below:

Table 4-23: Administration & General Expenses submitted by PGVCL for FY 2023-24 (Rs. in
Crore)
Gain/(Loss) due to
FY 2023- Gain/(Loss) due to
Sr. FY 2023-24 Uncontrollable
Particulars 24 Controllable
No. (Approved) Factor
(Actual) Factor

Administration & 227.30 279.49 (42.77) (9.42)

1
General Charges

Petitioner’s Submission

Administration & General expenses mainly comprise of rents, telephone and other communication
expenses, professional charges, conveyance and travelling allowances, etc.

The actual A&G expense for FY 2023-24 were Rs. 279.49 Crores. As per the provisions of the
GERC MYT Regulations, 2016, A&G expenses are categorised as controllable expense However,
there is an uncontrollable Gain/(Loss) of Rs (9.42) Crores due to A&G expenses related to Biparjoy
and considering the nature of this expenditure, PGVCL requests the Commission to consider the
same under uncontrollable expenses for the purpose of sharing of gains / losses. Accordingly, the
comparison of value approved by the Commission with the actual A&G expenses of PGVCL
shows a Controllable gain/(loss) of Rs. (42.77) Crores as highlighted in the table below:

Gujarat Electricity Regulatory Commission Page 135

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

Commission’s Analysis

The A&G expenses incurred during FY 2023-24 are Rs. 279.49 Crore, as per the audited Annual
Accounts. The Commission asked PGVCL to submit details and justification for higher expenses
booked under Conveyance and travel and “Other A&G” expenses. The details and justification
shared by PGVCL for expenses booked under “Conveyance and travel” and “Other A&G” as
below.
Travelling & Conveyance - The expenditure has increased by approximately 24%, amounting to
Rs. 25 Crores compared to the previous year. The primary reasons for this increase are:

• Increase in hiring of vehicle expenses by Rs. 14.31 Crores

• Increase in Travelling Allowance by Rs. 6.04 Crores

• Increase in Travelling Expenses by Rs. 4.71 Crores.

Other Administration & general Expenses – It is increased by around 18%, amounting to Rs.
10.18 crores (Approx.), as compared to previous year. Mainly reasons are:

• Increase in Incidental Stores expenses by Rs. 3.95 crores.

• Increase in Printing and Stationery charges by Rs. 1.73 crores.

• Increase in consumer billing charges by Rs. 1.56 crores.

• Increase in Testing charges by Rs. 0.60 crores.

Miscellaneous Losses & Write-offs of Rs. 6.09 Crore - The expenditure has increased by
approximately 48%, amounting to Rs. 1.97 Crores compared to the previous year. The primary
reason for this increase is the rise in compensation for injury/death damage – outsider, which has
escalated by Rs. 1.94 Crores.

The Commission is of the view that the amount booked against Compensation for Injuries, Deaths-
Staff & Outsiders, loss on obsolescence of the stores and other losses and write offs has to be borne
by PGVCL. Further, since amount of delay payment charges is not being considered as income in
line with MYT Regulations 2016, waiver of delayed payment charges also not considered as an
expense. Accordingly, the Commission has disallowed total of Rs 6.09 Crore

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March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

After examining the audited accounts of PGVCL, the Commission observed that an amount of Rs
9.42 Crore as shown under Travelling & Conveyance is on account of restoration work due to
Cyclone and thus falls under Uncontrollable Expenses.

Accordingly, the Commission has trued up the A&G expenses and the sharing of Gains/(Losses)
due to controllable factors, as shown in the Table below:

Table 4-24: A&G Expenses approved in the truing up for FY 2023-24 (Rs. Crore)
Gain/(Loss)
Gain/(Loss) due
S. Approved in Approved in due to
Particulars to Uncontrollable
No. Tariff Order Truing Up Controllable
Factors
Factors

Administration
1 227.30 273.40 (36.68) (9.42)
& General Charges

RDSS Metering Expenses

PGVCL has claimed zero RDSS Metering Expenses in the truing up for FY 2023-24, as against Rs. 194.88
Crore approved in the Tariff Order dated 31st March 2023 as shown in the Table below:

Table 4-25: RDSS Metering Expenses as submitted by PGVCL (Rs. in Crore)

Gain/(Loss)
FY due to Gain/(Loss) due
Sr. FY 2023-24 to
Particulars 2023-24 Controllable
No. (Approved) Uncontrollable
(Actual) Factor
Factor

RDSS Metering 297.90 - 297.90

1
Opex

Commission Analysis

The Commission has observed that there was no RDSS metering OPEX claimed by the Petitioner
in annual accounts of FY 2023-24. The Commission accordingly approved zero expenses for RDSS
Metering OPEX and allows Rs. 297.90 Crore as gain due to uncontrollable factors as shown in
below table:

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Paschim Gujarat Vij Company Limited
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Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

Table 4-26: RDSS Metering OPEX as approved by the Commission in the truing up for FY 2023-24
(Rs. Crore)
Gain/(Loss) Gain/(Loss) due
S. Approved in Approved in due to to
Particulars
No. Tariff Order Truing up Controllable Uncontrollable
Factors Factors

1 RDSS Metering OPEX 297.90 - - 297.90

Other Expenses Capitalized

PGVCL has claimed the actual expenses capitalized at Rs. 243.14 Crore in the truing up for FY 2023-24,
as against Rs. 320.14 Crore approved in the Tariff Order dated 31st March 2023 as shown in the Table
below:

Table 4-27: Other Expenses Capitalized as submitted by PGVCL (Rs. in Crore)

Gain/(Loss) due Gain/(Loss) due to
Sr. FY 2023-24 FY 2023-24
Particulars to Controllable Uncontrollable
No. (Approved) (Actual)
Factor Factor

Other Expenses (320.14) (243.73) - (76.41)

1
Capitalized

Petitioner’s Submission

The Other expenses including expenses capitalised, etc. are beyond the control of PGVCL and
therefore are considered as uncontrollable.
Commission’s Analysis
The Commission has observed that other expenses capitalised represent the capitalisation of Employee
Expenses and A&G Expenses. The actual other expenses capitalised is Rs. 243.73 Crore, as per the audited
annual accounts for FY 2023-24.

The Commission, accordingly, approves the Other Expenses Capitalised at Rs. 243.73 Crore against Rs.
320.14 Crore approved in the Tariff Order dated 31st March, 2023. The Commission allows Rs. 76.41 Crore
as loss due to uncontrollable factors as shown in the table below.

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Table 4-28: Other Expenses Capitalised approved in the truing up for FY 2023-24 (Rs. Crore)
Gain/(Loss) Gain/(Loss) due
S. Approved in Approved in due to to
Particulars
No. Tariff Order Truing Up Controllable Uncontrollable
Factors Factors

Other Expenses
1 (320.14) (243.73) - (76.41)
Capitalised

In view of the foregoing, the total O&M expenses approved in the truing up for FY 2023-24 and the Gain
/ (Loss) due to controllable and uncontrollable factors are detailed in the Table below:

Table 4-29: Approved O&M expenses and Gain / Loss in the truing up for FY 2023-24 (Rs. Crore)
Actual Gain/ (Loss) Gain/(Loss) due
Approved
S. Claimed Approved in due to to
Particulars in Tariff
No. in Truing truing up Controllable Uncontrollable
Order
up Factors Factors

1 Employee Cost 1,257.82 1,429.32 1,429.32 (50.17) (121.34)

2 R&M Expenses 201.61 407.33 187.33 (42.95) 57.23

3 A&G Expenses 227.30 279.49 273.40 (36.38) (9.42)

4 Extra-ordinary Item - - - - -

5 RDSS Opex 297.90 - - - 297.90

Other Expenses (320.14) (243.73) (243.73) - (76.41)
4
Capitalised

5 O&M Expenses 1,664.49 1,872.42 1,646.33 (129.80) 147.97

4.4 Capital Expenditure and Capitalization

Petitioner’s Submission

Capital expenditure incurred by PGVCL in FY 2023-24 was Rs. 1,885.39 Crores. The actual
capital expenditure by PGVCL during the FY 2023-24 is higher than that approved by the

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March 2025
Paschim Gujarat Vij Company Limited
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Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

Commission. The scheme-wise capital expenditure incurred in FY 2023-24 against approved by

the Commission is as shown below:
Table 4-30: Details submitted by PGVCL w.r.t. CAPEX during FY 2023-24 (Rs. in Crores)
FY 2023-
24 FY 2023-24
Particulars Deviation
(Approved (Actual)
)
A Distribution Schemes
Normal Distribution Scheme 342.47 580.57 (238.30)
DISS 15.00 24.95 (9.95)
ZUPPADPATTI 1.00 2.56 (1.56)
SKJY 50.00 47.54 2.46
RDSS 157.32 (157.32)
METER 52.46
Special Component Plan 2.00 6.56 (4.56)
HARIJANBASTI 0.06 (0.06)
FP 5.09 (5.09)
Total 877.12 (877.12)
B Rural Electrification Schemes
DDUJGY 0.01
SAGARKHEDU 40.00 21.97 18.03
Dark Zone 17.47 18.03
AG Tatkal 0.09
SPA 285.34 561.77 (276.77)
Smart Village 0.01 (0.01)
CWIP-AG Feeder Bifurcation Work Plant & Machinery 0.02 (0.02)
Total 601.34 (601.34)
C Other Central Schemes
Scheme 1 - -
Total
- -

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FY 2023-
24 FY 2023-24
Particulars Deviation
(Approved (Actual)
)
D Renewable Energy Based Projects
Solar Pump Irrigation 1.02 (1.02)
SKY (Medium Voltage covered conductor) 50.00 6.16
Capital Works in Progress - PM-KUSUM-B Scheme 4.50
Total 11.68
E System Improvement Scheme
SIS 50.00 254.70
Under Conversion of ODN TO UCN -Lines & Cable
100.00 5.44
Networks
Total 260.14
F IT BUDGET
Scheme 1 -
Total -
G Civil Budget
91-GENERAL 60.91
Total 60.91
H Others
HVDS 70.00 68.14
HVDS ENCON 4.65
IPDS 0.01
APDRP 1.21
RAPDRP-B 0.18
Total 74.19
E Capital Expenditure Total 1005.81 1885.39

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Paschim Gujarat Vij Company Limited
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Petitioner’s Submission
The actual capital expenditure by PGVCL during the FY 2023-24 is Rs. 1885.30 crores which is
higher than that approved by the Commission.
Scheme wise deviation in capital expenditure is explained as under:

• Normal Development Scheme:

Under the Normal Distribution Scheme, PGVCL incurs expenses to meet its supply obligations,
primarily driven by the number of applications received. For FY 2023-24, PGVCL has incurred Rs.
580.57 Crores under this head against an approved capital expenditure of Rs. 342.27 Crores.
Commission is humbly requested to allow the deviation.

• System Improvement (SI) Scheme:

The System Improvement Scheme involves the renovation and replacement of old distribution
lines, feeder bifurcation, installation, and augmentation of distribution transformers. These efforts
aim to enhance the reliability of the power supply and reduce distribution losses. In FY 2023-24,
PGVCL incurred an actual expenditure of Rs. 254.70 Crores, significantly higher than the approved
amount of Rs. 50.00 Crores.
• Distribution Infrastructure Shifting Scheme (DISS)
The Distribution Infrastructure Shifting Scheme involves shifting networks that obstruct
development activities, such as road widening, undertaken by local and urban authorities. Under
this scheme, PGVCL spent Rs. 24.95 Crores during FY 2023-24, against the approved expenditure
of Rs. 15.00 Crores.
• Sardar Krushi Jyoti Yojna (SKJY)
Under the Sardar Krushi Jyoti Yojna (SKJY), PGVCL carries out feeder bifurcation, strengthening,
and renovation of the agriculture-dominant distribution network with financial assistance from the
State Government. The scheme's primary objective is to improve the reliability of power supply
and reduce distribution losses. During FY 2023-24, PGVCL incurred Rs. 47.54 Crores as against
the approved expenditure of Rs. 50.00 Crores.

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Paschim Gujarat Vij Company Limited
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• Rural Electrification Schemes

Under the Rural Electrification Schemes, including SAGARKHEDU and SPA, PGVCL
focuses on electrifying rural and agricultural areas. In FY 2023-24, PGVCL incurred Rs.
561.77 Crores under the SPA scheme and Rs. 21.97 Crores under SAGARKHEDU, against
the approved expenditures of Rs. 285.00 Crores and Rs. 40.00 Crores, respectively.

Commission’s Analysis

The capital expenditure (CAPEX) approved for FY 2023-24 in the Tariff Order dated 31st March,
2023 was Rs. 1,005.81 Crore. The actual capital expenditure incurred is Rs. 1,885.39 Crore, which
is higher by Rs. 879.58 Crore than the CAPEX approved in the Tariff Order.

The Commission observed that there is higher Capital Expenditure of Rs. 238.10 Crore during FY
2023-24 compared to that approved in Tariff Order for Normal Development Scheme. The
Commission asked the PGVCL to provide justification for the same. PGVCL in its reply submitted
that most of the capital investment schemes by the DISCOMs are of continuous and ongoing nature.
These are based on yearly targets set for meeting the supply obligation, providing quality and
reliable power to consumers, reduction in losses, release of agriculture connections, etc.

The Commission takes a note that most of the CAPEX Schemes by the DISCOMs are of continuous
and on-going nature. These are based on yearly targets set for meeting the supply obligation,
providing quality and reliable power to the consumers, reduction in losses, release of agriculture
connections, etc. Nevertheless, the Licensee should be more realistic in projecting the CAPEX.

The Commission has verified the audited annual accounts of PGVCL and has observed that
PGVCL has incurred actual CAPEX of Rs. 1,885.39 Crore and net capitalisation of Rs. 1,664.56
Crore. The Commission, therefore, approves the actual CAPEX of Rs. 1,885.39 Crore and net
capitalisation of Rs. 1,664.56 Crore in the truing up for FY 2022-23.

Funding of Capitalization

The funding of actual capitalisation is done through various sources categorised under four
headings namely: Consumer Contribution, Grants, Equity and Debt. The detailed breakup of
funding of capitalised asset during FY 2023-24 is mentioned in the table below.

Gujarat Electricity Regulatory Commission Page 143

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Paschim Gujarat Vij Company Limited
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Table 4-31: Funding of Capitalization (Rs. Crore)

FY 2023-24 FY 2023-24
Sr. No. Particulars Deviation
(Approved) (Actual)

1 Capitalization 1,005.81 1,721.20 (715.39)

2 Less : Consumer Contribution 253.43 289.35 (35.92)

3 Grants 83 97.72 (14.72)

4 Balance Capitalisation 669.38 1,334.14 (664.76)

5 Debt @ 70% 468.56 933.90 (465.34)

6 Equity @ 30% 200.81 400.24 (199.43)

Petitioner’s Submission
PGVCL submitted that the funding of actual capitalisation is done through various sources categorised under
four headings namely: Consumer Contribution, Grants, Equity and Debt.
Commission’s Analysis

The Commission noted that PGVCL has considered gross capitalisation instead of net capitalisation (net of
assets decommissioned) for working out the eligible debt and equity amount for FY 2022-23. The
Commission in accordance with the GERC MYT Regulations, 2016 and the approach adopted by the
Commission in previous Orders on the equity and debt related to the assets decommissioned has considered
net capitalisation for working out the eligible debt and equity amount for FY 2023-24.

It is observed that PGVCL has claimed the funding of Capitalisation, net of Consumer Contribution and
Government Grant, in the normative Debt: Equity ratio of 70:30, as specified in the GERC MYT
Regulations, 2016.

The Commission has verified the amount considered by PGVCL against Government Grants and Consumer
Contribution from the audited Annual Accounts for FY 2023-24. The Commission has accordingly
considered the funding of capitalisation in FY 2023-24 through Consumer Contribution and Grants as Rs.
289.35 Crore and Rs. 97.72 Crore, respectively, in the truing up for FY 2023-24.

Gujarat Electricity Regulatory Commission Page 144

March 2025
Paschim Gujarat Vij Company Limited
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The Commission, therefore, approves the funding of Capitalization in the truing up of FY 2023-24 as given
in the table below.

Table 4-32: Approved Capitalisation and sources of funding in the truing up for FY 2023-24 (Rs.
Crore)
Approved in Claimed in Approved in Truing
Particulars
Tariff Order truing up Up

Capitalization 1,005.81 1,721.20 1,664.56

Consumer Contribution 253.43 289.35 289.35
Grants 83 97.72 97.72
Balance CAPEX for the Year 669.38 1,334.14 1,277.50
Debt (70%) 468.56 933.90 894.25
Equity (30%) 200.81 400.24 383.25

4.5 Depreciation
PGVCL has claimed Depreciation of Rs. 1,030.00 Crore in the truing up for FY 2023-24 against
the Depreciation of Rs. 1,034.00 Crore approved in the Tariff Order dated 31st March 2023.

Petitioner’s Submission

PGVCL had been charging depreciation on fixed assets of the Company, on the useful life of the
assets at rates prescribed under Schedule XIV to the Companies Act, 1956. The Company being
engaged in electricity distribution business is covered under the Electricity Act, 2003 and
provisions of the Electricity Act supersede the provisions of the Companies Act, 2013.
In case of Depreciation, the GERC MYT Regulations, 2016 provides that-
“Depreciation shall be computed annually based on the straight-line method at the
rates specified in the Annexure I to these Regulations:

Provided that the remaining depreciable value as on 31st March of the year closing
after a period of 12 years from date of commercial operation shall be spread over
the balance useful life of the assets:

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Provided further that for a Generating Company or a Transmission Licensee or SLDC or a

Distribution Licensee formed as a result of a Transfer Scheme, the depreciation on assets
transferred under the Transfer Scheme shall be charged as per rates specified in these Regulations
for a period of 12 years from the date of Transfer Scheme, and thereafter depreciation will be
spread over the balance useful life of the assets”
Accordingly, PGVCL has calculated the Depreciation for FY 2023-24 in accordance with the
provisions of the GERC MYT Regulations, 2016 and the aforementioned directives of the
Commission.
The actual and approved depreciation for FY 2023-24 is as shown below:

Table 4-33: Fixed Asset and Depreciation for FY 2023-24 submitted by PGVCL (Rs. in Crore)

Sr. FY 2023-24 FY 2023-24 Deviation

Particulars
No. (Approved) (Actual)

1 Gross Block in Beginning of the year 22,134.58 22,266.07

2 Additions during the Year (Net) 1,005.81 1,664.56

3 Closing GFA 23,140.39 23,930.63

4 Average GFA 22,637.49 23,098.35

4.40
5 Depreciation for the Year 1,034.40 1,030.00

6 Average Rate of Depreciation 4.57% 4.46%

The actual depreciation for FY 2023-24 as against the value approved by the Commission results
into an uncontrollable gain/(loss) of Rs. 4.40 Crores as indicated below:

Table 4-34: Treatment of Depreciation (Rs. in Crore)

Sr. FY 2023-24 FY 2023-24 Gain/(Loss) due to Gain/(Loss) due to

Particulars
No. (Approved) (Actual) Controllable Factor Uncontrollable Factor

1 Depreciation 1,034.40 1,030.00 - 4.40

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Commission’s Analysis

The Commission has considered the Closing GFA of FY 2022-23 approved in Order dated 1st June,
2024 as Opening GFA of FY 2023-24. The net addition during the year of Rs. 1,664.56 Crore has
been verified from the audited Annual Accounts for FY 2023-24. The depreciation as per audited
Annual Accounts for FY 2023-24 is Rs. 1,030.00 Crore.

The Commission, accordingly, approves Depreciation at Rs. 1,030.00 Crore in the truing up for FY
2023-24, as shown in the Table below:

Table 4-35: Approved fixed assets & depreciation for FY 2023-24 (Rs. Crore)
S. Particulars Approved in Actual Approved in
No. Tariff Order Claimed in Truing Up
Truing up
1 Gross Block in Beginning of the year 22,134.58 22,266.07 22,266.07
2 Additions during the Year (Net) 1,005.81 1,664.56 1,664.56
3 Gross Block at the end of the year 23,140.39 23,930.63 23,930.63
4 Depreciation for the Year 1,034.40 1,030.00 1,030.00
5 Average Rate of Depreciation 4.57% 4.46% 4.46%

The amount of depreciation is dependent on the quantum of capitalisation, rate of depreciation, etc.
The Commission has, therefore, considered the parameters impacting depreciation as
uncontrollable.

The Commission, accordingly, approves the Gain /(Loss) on account of depreciation in the truing
up for FY 2023-24, as detailed in the Table below:

Table 4-36: Gain/(Loss) due to Depreciation approved in truing up for FY 2022-23 (Rs. Crore)
Gain/(Loss) due Gain/(Loss) due to
Approved in Approved in
Particulars to Controllable Uncontrollable
Tariff Order Truing up
Factors Factors
Depreciation 1034.40 1,030.00 - 4.40

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4.6 Interest and Finance charges

PGVCL has claimed Rs. 360.19 Crore towards interest and finance charges in the truing up for FY 2023-
24, as against Rs. 245.49 Crore approved in the Tariff Order dated 31st March 2023, as shown in the Table
below:
Table 4-37: Interest & Finance Charges as submitted by PGVCL (Rs. in Crore)
Sr. Particulars FY 2023-24 FY 2023-24
No. (Approved) (Actual)
1 Total Interest & Financial Charges 245.49 360.19

Petitioner’s Submission

For assessing actual Interest charges on Loans in FY 2023-24, PGVCL has considered the opening
balance of loans for FY 2023-24 same as the closing loan approved by the Commission for FY
2022-23 in the True up Order dated 1st June, 2024. The loan addition in FY 2023-24 is computed
at Rs. 933.90 Crores which consists of loans for funding the capitalization.
In line with the approach adopted by the Commission and as prescribed by GERC MYT
Regulations, 2016 repayment during the year has been considered equal to the depreciation for the
financial year.
PGVCL has also considered the interest on security deposits of Rs. 182.65 Crore as per the
provisions of the GERC MYT Regulations, 2016.
The total Interest & Financial charges for FY 2023-24 computed by PGVCL as against that
approved by the Commission is as shown below:
Table 4-38: Interest & Finance Charges (Rs. in Crore)
Sr. Particulars FY 2023-24 FY 2023-24 Deviation
No.
(Approved) (Actual)

1 Opening Loans 1,792.73 1,936.36 -

2 Loan Additions during the Year 468.56 933.90 -

3 Repayment during the Year 1,034.40 1,030.00 -
4 Closing Loans 1,226.89 1,840.25

5 Average Loans 1,509.81 1,888.31

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Sr. Particulars FY 2023-24 FY 2023-24 Deviation

No.
(Approved) (Actual)

6 Interest on Loan 140.77 177.41

7 Interest in Security Deposit 103.90 182.65
8 Other Bank Charges 0.83 0.14

9 Total Interest & Financial Charges 245.49 360.19 (114.70)

10 Weighted Average Rate of Interest 9.32% 9.40%

The GERC (MYT) Regulations, 2016 categorise the interest and finance charges as
uncontrollable expenses. Any changes on account of changes in applicable interest rates
should be considered as uncontrollable. Accordingly, PGVCL has considered deviation in the
actual vis-à-vis the approved expenses towards interest and finance charges as uncontrollable.
The same has been provided in the table given below:
Treatment of Interest & Finance Charges (Rs. in Crore)
Gain/(Loss)
due to Gain/(Loss)
FY 2023- due to
Sr. FY 2023-24
Particulars 24 Controllable
No. (Approved) Uncontrollable
(Actual) Factor
Factor

Interest & Finance 245.49 360.19 (114.70)

1
Charges

Commission’s Analysis

The Commission has considered the Closing Balance of Loans approved in the true up Order for
FY 2022-23, as the Opening Balance of Loans for FY 2023-24. The normative addition of loans
during FY 2023-24 has been considered as 894.25 Crore, as approved in relevant section of this
Order. The repayment of loan has been considered equal to the depreciation amount net of
depreciation corresponding to Grant and Consumer Contribution approved in this Order and the
same comes out to be Rs. 1,012.74 Crore (1,030.00-17.26).

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The commission had directed the petitioner to submit the detail breakup of long-term loan and
reconciliation of weighted average interest rate accordingly. The Petitioner in its reply submitted
long term loan details and computation of Interest on loan.

The Commission in its analysis based on earlier practice finds that the interest rate on Long Term
loans was 12.21% for FY 2023-24. The interest on security deposits of Rs. 182.65 Crore has been
verified from the audited Annual Accounts for FY 2023-24. The Other Bank charges of Rs. 0.14
Crore have been considered as per the audited Annual Accounts for FY 2023-24.

PGVCL has submitted details of the actual loan portfolio and the rate of interest applicable for each
loan portfolio for FY 2023-24. The Commission has computed the weighted average rate of interest
as 12.21% in accordance with Regulation 38 of the GERC (MYT) Regulations, 2016.

Taking all these factors into consideration, the interest and finance charges approved in the truing
up for FY 2023-24 is detailed in the Table below:

Table 4-39: Interest and Finance Charges approved by the Commission in the truing up for FY
2023-24 (Rs. Crore)
Approved in Actual
S. Approved in
Particulars the Tariff Claimed in
No. Truing up
Order Truing up

1 Opening Loans 1,792.73 1,936.36 1,936.36

2 Loan Additions during the Year 468.56 933.90 894.25
3 Repayment during the Year 1,034.40 1,030.00 1,012.74
4 Closing Loans 1,226.89 1,840.25 1,817.86
5 Average Loans 1,509.81 1,888.31 1,877.11
6 Interest on Loan 140.77 177.41 229.20
7 Interest on Consumers’ Security Deposit 103.90 182.65 182.65
8 Other Bank Charges 0.83 0.14 0.14
9 Total Interest & Financial Charges 245.49 360.19 411.98
10 Weighted Average Rate of Interest 9.32% 9.40% 12.21%

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The Commission, accordingly, approves the interest and finance charges at Rs. 411.98 Crore in the
truing up for FY 2023-24.

As per the GERC (MYT) Regulations, 2016, the parameters that impact interest and finance
charges are uncontrollable. The Commission, accordingly, approves the Gain / (Loss) on account
of interest and finance charges in the truing up for FY 2023-24, as detailed in the Table below:

Table 4-40: Gain / (Loss) approved in the truing up for FY 2023-24 (Rs. Crore)
Gain/(Loss)
Gain/(Loss) due to
Approved in Approved in due to
Particulars Uncontrollable
Tariff Order Truing up Controllable
Factors
Factors
Interest and Finance
245.49 411.98 - (166.49)
Charges

4.7 Interest on Working Capital

PGVCL has not claimed any interest on working capital in the truing up for FY 2023-24, against
Nil provision approved in the Tariff Order dated 31st March 2023 as detailed in the table below.

Table 4-41:Interest on working capital claimed by the Petitioner for FY 2023-24 (Rs. Crore)

FY 2023-24 FY 2023-24 Deviation

Sr. No. Particulars
(Approved) (Actual)

1 Interest on Working Capital - - -

Petitioner’s Submission

The interest on working capital has been calculated on the basis of the provisions of the GERC
MYT Regulations, 2016.
In line with the First Amendment to the GERC MYT Regulations, 2016 dated 2nd December,
2016, the rate of interest considered is the weighted average of the 1-year MCLR of the State
Bank of India during the year plus 250 basis points. This rate works out to 11.07%. Also, as per
these Regulations, one month of receivables are to be considered for calculation of interest on
working capital. Also amount held as security deposit from consumers under clause (a) and
clause (b) of sub-section (1) of Section 47 of the Electricity Act 2003 except the security deposit
held in the form of Bank Guarantees is to be deducted from it. Since the interest on working

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capital for FY 2023-24 incurred by PGVCL is nil, PGVCL has not claimed interest on working
capital for FY 2023-24 as shown below:
Interest on Working Capital for FY 2023-24 submitted by PGVCL (Rs. in Crores )

FY 2023-24 FY 2023-24 Deviation

Sr. No. Particulars
(Approved) (Actual)

1 O & M expenses 138.71 156.03 -

2 Maintenance Spares 221.35 222.66 -

3 Receivables 1946.12 2308.49 -

Amount held as security deposit from 2444.73 2948.41 -
4 consumers

5 Total Working Capital - (261.22) -

6 Rate of Interest on Working Capital 9.50% 11.07% -

7 Interest on Working Capital - - -

Commission’s Analysis

The Commission has examined the computation of normative working capital under the GERC
(MYT) Regulations, 2016. The working capital requirement works out to be negative during FY
2023-24. As the working capital requirement works out to be negative, there cannot be any interest
on working capital. Accordingly, neither any interest has been claimed by PGVCL nor any interest
is approved by the Commission.

The detailed computation of Working Capital requirement and interest thereon is given in the Table
below:

Table 4-42: Interest on working capital approved in the truing up for FY 2023-24 (Rs. Crore)

Approved in Actual Approved in

S. No. Particulars Claimed in
the Tariff Order Truing up
Truing up

1 O&M expenses 138.71 156.03 137.19

2 Maintenance Spares 221.35 222.66 222.66
3 Receivables 1,946.12 2,308.49 2,308.07

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Actual
Approved in Approved in
S. No. Particulars Claimed in
the Tariff Order Truing up
Truing up

4 Amount held as security deposit from consumers 2,444.73 2,948.41 2,948.41

5 Total Working Capital - (261.22) (280.48)
6 Rate of Interest on Working Capital 9.50% 11.07% 11.07%
7 Interest on Working Capital - - -

The Commission, accordingly, approves the interest on working capital as Nil in the truing up for
FY 2023-24.

4.8 Bad Debts Written Off

PGVCL has claimed nil against bad debts written off in the truing up for FY 2023-24 as against
Nil approved in the Tariff dated 31st March 2023, as given in the Table below:

Bad & Doubtful Debts Written Off submitted by PGVCL for FY 2023-24

Sr. FY 2023-24 FY 2023-24

Particulars Deviation
No. (Approved) (Actual)

1 Bad and Doubtful Debts 5.62 - 5.62

Petitioner’s Submission

A comparison of the actual value with the figure approved by the Commission for FY 2023-24
shows a gain/(loss) of 5.62 Crores on account of controllable factors as shown in the table below:
Treatment of Bad & Doubtful Debts (Rs. in Crore)
Gain/(Loss) due
Gain/(Loss)
to
FY 2023- due to
Sr. FY 2023-24
Particulars 24 Uncontrollable
No. (Approved) Controllable
(Actual) Factor
Factor

Bad and Doubtful 5.62 - 5.62

1
Debts

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Commission’s Analysis

As per Regulation 94.9.1 of the GERC (MYT) Regulations, 2016, the bad debts written off in the
ARR are to be passed through based on the actual write off of bad debts during the year. There has
been nil bad debts for PGVCL during FY 2023-24 and accordingly the Commission approves the
same.

Table 4-43: Gain/ (Loss) due to Bad Debts approved in the Truing up for FY 2023-24 (Rs. Crore)
Gain/(Loss)
Gain/(Loss) due to
Approved in Approved in due to
Particulars Uncontrollable
Tariff Order Truing up Controllable
Factors
Factors
Bad Debts Written Off 5.62 - 5.62

4.9 Return on Equity

PGVCL has claimed Rs. 731.89 Crore towards Return on Equity (RoE) in the truing up for FY 2023-24 as
against Rs. 712.53 Crore approved in the Tariff Order dated 31st March 2023, as given in the Table below:

Return on Equity as submitted by PGVCL (Rs. in Crore)

Sr. FY 2023-24 FY 2023-24

Particulars Deviation
No. (Approved) (Actual)
1 Return on Equity 712.53 731.89 (19.36)

Petitioner’s Submission

As per the GERC MYT Regulations, 2016, a return @ 14% on the equity base is considered
as reasonable and allowed by the Commission. Accordingly, PGVCL has computed the
Return on Equity considering a rate of return at 14%.
For assessing actual return on equity for FY 2023-24, PGVCL has considered the opening balance
of equity of FY 2023-24 as the closing balance of equity of FY 2022-23 approved by the
Commission in the True up Order dated 1st June, 2024 and additions during the year as already
discussed in the above paragraphs have been considered. The return on equity for FY 2023-24 is
as shown below:

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Return on Equity for FY 2023-24 submitted by PGVCL (Rs. in Crore)

Sr. FY 2023-24 FY 2023-24

Particulars Deviation
No. (Approved) (Actual)
1 Opening Equity Capital 4989.07 5027.65 (38.58)

2 Equity Additions during the Year 200.81 400.24 (199.43)

3 Closing Equity 5189.89 5427.89 (238.00)

4 Average Equity 5089.48 5227.77 (138.29)

5 Rate of Return on the Equity 14% 14% -

6 Return on Equity 712.53 731.89 (19.36)

A comparison of the actual Return on Equity for FY 2023-24 with the amount approved by the
Commission shows a net uncontrollable gain/ (loss) as indicated below.
Treatment of Return on Equity (Rs. in Crore)

Sr. Particulars FY 2023-24 FY 2023- Gain/(Loss) due Gain/(Loss) due to

No. (Approved) 24 to Uncontrollable
(Actual) Controllable Factor
Factor

1 Return on Equity 712.53 731.89 (19.36)

Commission’s Analysis

The Commission has considered the Closing Balance of equity as approved in the truing up of FY
2022-23, as the Opening Balance of equity for FY 2023-24. The Commission has approved the
normative Equity addition as Rs. 383.25 Crore taking into account the capitalisation and
decapitalisation for the FY 2023-24.

The Commission has computed the RoE in the truing up for FY 2023-24 considering the rate of
14.00% specified in the GERC (MYT) Regulations, 2016 as detailed in the Table below:

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Table 4-44: Return on Equity approved in truing up for FY 2023-24 (Rs. Crore)
Approved
Approved in the Actual Claimed
S. No. Particulars in Truing
Tariff Order in Truing up
up

1 Opening Equity Capital 4,989.07 5,027.65 5,027.65

2 Equity Additions during the Year 200.81 400.24 383.25
3 Closing Equity 5,189.89 5,427.89 5,410.90
4 Average Equity 5,089.48 5,227.77 5,219.27
5 Rate of Return on the Equity 14.00% 14.00% 14.00%

6 Return on Equity 712.53 731.89 730.70

The Commission approves the Return on Equity at Rs. 730.70 Crore in the truing up for FY 2023-
24.

Deviation in RoE is due to uncontrollable factors as RoE is being allowed on a normative basis and
the quantum of equity addition in the year depends upon the capital expenditure and the
capitalization achieved during the year.

The Commission, accordingly, approves the Gain/(Loss), on account of RoE, in the Truing up for
FY 2023-24 as uncontrollable, as detailed in the Table below:

Table 4-45: Approved Gain / Loss due to Return on Equity in the truing up for FY 2023-24 (Rs.
Crore)
Gain/(Loss) due Gain/(Loss) due to
Approved in Approved in
Particulars to Controllable Uncontrollable
Tariff Order Truing up
Factors Factors
Return on Equity 712.53 730.70 - (18.17)

4.10 Income Tax

PGVCL has claimed Rs. 489.21 Crore towards Income Tax for FY 2023-24, as against Rs. 37.95
Crore approved in the Tariff Order dated 31st March 2023, as given in the Table below:

Gujarat Electricity Regulatory Commission Page 156

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Income Tax claimed by PGVCL for FY 2023-24 in truing up (Rs. Crore)

Sr. Particulars FY 2023-24 FY 2023-24 Deviation
No. (Approved) (Actual)
1 Income Tax 37.95 489.21 (451.26)

Petitioner’s Submission

The Petitioner has submitted that Income Tax being a statutory expense, any variation on this
account is uncontrollable. Accordingly, PGVCL requests the Commission to consider the same as
an uncontrollable loss and allow the entire expenditure towards income tax without any deduction.
A comparison of actual taxes for FY 2023-24 with the amount approved by the Commission shows
an uncontrollable gain/(loss) of Rs. (451.26) Crores as indicated in the table below:

Treatment of Income Tax as claimed by PGVCL in truing up (Rs. in Crore)

Sr. Particulars FY 2023-24 FY 2023- Gain/(Loss) due Gain/(Loss) due to
No. (Approved) 24 to Uncontrollable
(Actual) Controllable Factor
Factor

1 Income Tax 37.95 489.21

(451.26)

Commission’s Analysis

The Commission has verified the amount of Income Tax payable from the audited Annual Accounts
of PGVCL, i.e., Rs. 489.21 Crore. Accordingly, the Commission, approves the Income Tax of Rs.
489.21 Crore in the truing up for FY 2023-24.

Variation in Income Tax is uncontrollable, hence, the Commission approves the Gain/(Loss) on
account of Income Tax in the truing up for FY 2023-24, as detailed in the Table below:

Table 4-46: Approved Gain / (Loss) due to Income Tax in the truing up for FY 2023-24 (Rs. Crore)

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Gain/(Loss) due to Gain/(Loss) due to

Approved in Approved in
Particulars Controllable Uncontrollable
Tariff Order Truing up
Factors Factors
Income Tax 37.95 489.21 - (451.26)

4.11 Non-Tariff Income for FY 2023-24

PGVCL has claimed the actual Non-Tariff Income (NTI) as Rs. 316.59 Crore in the truing up for
FY 2023-24, as against Rs. 316.59 Crore approved in the Tariff Order dated 31st March 2023, as
detailed in the Table below:

Non-tariff Income claimed by PGVCL in truing up for FY 2023-24 (Rs. in Crore)

Sr. No. Particulars FY 2023-24 FY 2023-24

(Approved) (Actual)

1 Total Non-Tariff 316.59 351.36

Income

Petitioner’s Submission

The Non-Tariff Income of PGVCL considered for FY 2023-24 is Rs. 351.36 Crores as
against Rs. 316.59 Crores approved by the Commission results in an uncontrollable
gain/(loss) of Rs. (34.77) Crores as shown in the table below:
Treatment of Non-tariff Income claimed by PGVCL in truing up for FY 2023-24 (Rs. in
Crore)

Sr. Particulars FY 2023-24 FY 2023-24 Gain/(Loss) due to Gain/(Loss) due to

No. (Approved) (Actual) Uncontrollable Factor
Controllable Factor

1 Total Non-Tariff 316.59 351.36 (34.77)

Income

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Exclusion of Roof top solar incentives from Non-Tariff Income:

The solar rooftop incentives provided to DISCOMs under schemes such as the PM Surya Ghar:
Muft Bijli Yojana are specifically designed to promote the adoption and deployment of rooftop
solar projects. As per the guidelines for PM Surya Ghar: Muft Bijli Yojana – Incentives to
DISCOMs, Ministry of New and Renewable Energy, Government of India, March 2024, under
clause 6(e) of the scheme guidelines explicitly states that the incentives are not intended to be a
component of tariff determination or tariff rationalization processes conducted by respective
Electricity Regulatory Commissions. Further the clause 1(e) also provides for subsuming of grid
connected solar rooftop programme, under the said scheme. In light of the above, the incentives of
Rs. 26.90 Crores have not been included in Non-Tariff Income (NTI) for tariff determination.

Commission’s Analysis

The Commission, based on the information submitted by the Petitioner, observed that an amount
of Rs 33.61 Crore received by the Petitioner under “PM Surya Ghar Yojana Incentive” is not
offered under NTI. However, the Commission decided to add the same while calculating NTI, as
per the practice adopted in earlier Tariff Order.
Accordingly, the Commission approves the net NTI as Rs. 384.97 Crore in the truing up for FY
2023-24. The deviation in Non-Tariff Income is considered as uncontrollable. The Commission,
accordingly, approves the Gains/(Losses) on account of Non-Tariff Income in the truing up for FY
2023-24, as detailed in the Table below:

Table 4-47: Approved Gains/(Losses) due to Non-Tariff Income in the truing up for FY 2023-24
(Rs. Crore)
Gain/(Loss) due Gain/(Loss) due to
Approved in Approved in
articulars to Controllable Uncontrollable
Tariff Order Truing up
Factors Factors

Non-Tariff Income 316.59 384.97 - (68.38)

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4.12 Aggregate Revenue Requirement approved for FY 2023-24

The ARR approved in the Tariff Order dated 31st March, 2023, actual claimed in truing up, approved
in the truing up and Gain/(Loss) computed in accordance with the GERC (MYT) Regulations,
2016, are given in the Table below:

Table 4-48: ARR approved in truing up for FY 2023-24 (Rs. Crore)

Approved Gain/(Loss) Gain/(Loss)
Actual Approved
S. Annual Revenue in the due to due to
Claimed in in Truing
No. Requirement Tariff Controllable Uncontrollab
Truing up up
Order Factors le Factors

1 Cost of Power Purchase 18,791.77 21,957.00 21,957.00 149.53 (3,314.76)

2 O&M Expenses 1,664.49 1,872.42 1,646.33 (129.80) 147.97
2.1 Employee Cost 1,257.82 1,429.32 1,429.32 (50.17) (121.34)
2.2 R&M Expenses 201.61 407.33 187.33 (42.95) 57.23
2.3 A&G Expenses 227.30 279.49 273.40 (36.68) (9.42)
2.4 Extra-ordinary Item - - - - -

2.5 RDSS Metering Opex 297.90 - - - 297.90

Other Expenses (320.14) (243.73) (243.73) - (76.41)
2.5
Capitalised

3 Depreciation 1,034.40 1,030.00 1,030.00 - 4.40

4 Interest & Finance Charges 245.49 360.19 411.98 - (166.49)
Interest on Working - - - - -
5
Capital

6 Bad Debts written off 5.62 - - 5.62 -

7 Return on Equity 712.53 731.89 730.70 - (18.17)
8 Income Tax 37.95 489.21 489.21 - (451.26)
9 ARR (1 to 8) 22,492.25 26,440.71 26,265.22 25.35 (3,798.32)
10 Non-Tariff Income 316.59 351.36 384.97 - (68.38)
11 Total ARR (9-10) 22,175.66 26,089.35 25,880.25 25.35 (3,729.94)

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4.13 Revenue for FY 2023-24

During the FY 2023-24, PGVCL’s actual revenue amounted to Rs. 26,863.63 Crores. The break-up is
as follows:

Revenue submitted in truing up for FY 2023-24 (Rs. in Crore)

FY 2023-24 FY 2023-24
Sr. No. Particulars
(Approved) (Actual)

1 Revenue from Sale of Power 13,728

26,863.63
2 Revenue from FPPPA 8,898

3 Other Income (Consumer related) 264 380.87

Total Revenue excluding subsidy

4 22,890.00 27,244.49
(1 + 2 + 3)

Agriculture Subsidy 430

5
457.36

Total Revenue including subsidy

6
(4 + 5) 23,320.01 27,701.86

Commission’s Analysis

The Commission has verified the total category-wise revenue for FY 2023-24 from the audited
Annual Accounts. The revenue from category-wise sales, as per audited Annual Accounts, is Rs.
26,863.83 Crore. The Commission observed that this includes the component of Rs 5.02 Crore,
corresponding to sale of power to GUVNL. The Commission has reduced the revenue by this
amount as the same has been utilized to reduce the Power Purchase Cost. Accordingly, the
Commission considers revenue from sale of power for the Petitioner for truing up of FY 2023-24
as Rs. 26,858.61 Crore.

Further, the Commission has considered the actual Agriculture Subsidy Rs. 457.36 Crore separately
as per the GERC (MYT) Regulations, 2016.

The Revenue approved in the truing up for PGVCL for FY 2023-24 is shown in the Table below:

Table 4-49: Revenue approved in the truing up for FY 2023-24 (Rs. Crore)

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Approved Actual Approved

S.
Particulars in Tariff Claimed in in Truing
No.
Order Truing up up
1 Revenue from Sale of Power 13,728.00 26,863.63 26,858.61
2 Revenue from FPPPA 8,898.00

3 Other Income (Consumer related) 264.00 380.87 380.87

Total Revenue excluding subsidy 27,244.49 27,239.48
4 22,890.00
(1+2+3)

5 Agriculture Subsidy 430.00 457.36 457.36

6 Total Revenue (4+5) 23,320.00 27,701.86 27,696.84

In response to the query about reconciliation of subsidy received from GUVNL and subsidy
claimed by PGVCL in their audited account for FY 2023-24, PGVCL provided reconciliation vide
additional replies as under:

Table 4-50: Subsidy received vs Subsidy claimed in the truing up for FY 202324 (Rs. Crore)
Sr. No. Subsidy Name Amount Received
(Rs. Cr.)
1 Agriculture (H P Based) 457.36
2 Tariff compensation 680.16
3 FPPPA Subsidy 2,931.83
4 Energy Conservation 0.58
5 Water Works 279.99
6 Research & Development 0.54
7 Subsidy against Losses Flood, cyclone etc. 220.00
Total 4,570.47

In view of the above, the Commission, approves the total revenue of Rs. 27,696.84 Crore, including
consumer related other income of Rs. 380.87 Crore and Agriculture Subsidy of Rs. 457.36 Crore,
in the truing up for FY 2023-24.

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4.14 Revenue (Gap)/Surplus for FY 2023-24

Petitioner’s Submission
The Commission in its Tariff Order dated 31st March 2023 has approved Aggregate Revenue
Requirement of Rs. 22,175.66 Crores for FY 2023-24. The Commission had also added Revenue
(Gap) / Surplus of Rs. (1,134.30) Crores due to Truing up of FY 2021-22 in the Aggregate Revenue
Requirement.
As per the mechanism specified in the GERC MYT Regulation 2016, PGVCL proposes to pass on
a sum of 1/3rd of total gain/(loss) on account of controllable factors i.e., Rs. 6.42 Crores and total
gain/(loss) on account of uncontrollable factor i.e., Rs. (3,932.95) Crores to the consumers.
Adjusting these to the net Aggregate Revenue Requirement, PGVCL has arrived at the Revised
Aggregate Revenue Requirement for FY 2023-24 at Rs. 27,236.49 Crores.
This revised Aggregate Revenue Requirement is compared against the revised income under
various heads including Revenue from sale of power of Rs. 26,863.63 Crores, Other Consumer
related Income of Rs. 380.87 Crores, Agriculture Subsidies of Rs. 457.36 Crores and GUVNL
profit allocation of Rs. 27.85 Crore, summing up to a Total Revenue of Rs. 27,729.70 Crores.
Accordingly, total Revenue (Gap) / Surplus of PGVCL for FY 2023-24 after treatment of
gain/(loss) due to controllable / uncontrollable factors is computed at Rs. 493.22 Crores as shown
in the table below:

Table 4-51: Revenue (Gap) / Surplus for FY 2023-24 submitted by PGVCL (Rs. in Crore)

Sr. FY 2023-24
Particulars
No. (Actual)
1 Aggregate Revenue Requirement originally approved for FY 2023-24 22,175.66
2 Less: (Gap) / Surplus of FY 2021-22 (1,134.30)
Less: Gain / (Loss) on account of Uncontrollable factor to be passed on
3 (3,932.95)
to Consumer
Less: Gain / (Loss) on account of Controllable factor to be passed on to
4 6.42
Consumer (1/3rd of Total Gain / Loss)
5 Revised ARR for FY 2023-24 (1 - 2 - 3 - 4) 27,236.49
6 Revenue from Sale of Power 26,863.63
7 Other Income (Consumer related) 380.87

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Sr. FY 2023-24
Particulars
No. (Actual)
8 Total Revenue excluding Subsidy (6 + 7) 27,244.49
9 Agriculture Subsidy 457.36
10 GUVNL Profit / (Loss) Allocation 27.85
11 Total Revenue including Subsidy (8 + 9 + 10) 27,729.70
Revised (Gap)/ Surplus after treating gains/(losses) due to
12 493.22
Controllable/ Uncontrollable factors (11 - 5)

The Petitioner through this Petition intends to adjust the surplus worked on truing up of FY 2023-
24 through the trued up ARR for FY 2025-26.

Commission’s Analysis

While examining the Annual Accounts of GUVNL and the additional submissions made by the
DISCOM, the Commission observed that there is total GUVNL profit of Rs 128.01 Crore (84.93,
GUVNL profit + 43.09, CPF loss) to be shared among the 4 DISCOMs. The said shortfall in FY
2023-24 to CPF Trust is due to non-receipt of Principal and Interest Amount from investment in
certain entities. Upon enquiry by the Commission, PGVCL submitted that, in accordance with the
provisions of the EPF & MP Act, 1952, the employer is obligated to make good the loss to the CPF
Trust. In this regard, the Commission is of the view that the loss to CPF Trust that made good by
the employer (GSECL, GETCO, four DISCOMs and GUVNL) and claimed under Employee Cost
by reducing the profit of GUVNL was already recovered once by the utilities under the head of
Employee Expenses. In view of this, the Commission has decided to reduce the proportionate
amount (proportionate to their respective power purchase cost from GUVNL) for the State
DISCOMs, viz., DGVCL, MGVCL, UGVCL, and PGVCL, as shown in the Table below, while
calculating the trued-up Gap/ Surplus for FY 2023-24:

Table 4-52: Additional Reduction as GUVNL profit for State DISCOMs for FY 2023-24 (Rs. Crore)
S. No. DISCOM Amount

1 DGVCL 39.47

2 MGVCL 14.98

3 PGVCL 41.91

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S. No. DISCOM Amount

4 UGVCL 31.66

5 Total 128.01

Further, the Commission observed that GUVNL has recouped the loss of Rs 17.67 Crore to CPF
Trust through Employee Expenses on account of reasons mentioned above. The Commission
decides to reduce the ARR of PGVCL by an amount of Rs 37.73 Crore, since the said amount has
been once paid by the consumers in terms of Employee Expenses.

The Revenue (Gap)/Surplus approved by the Commission after truing up for FY 2023-24, is
summarised in the Table below:

Table 4-53: Revenue (Gap)/Surplus approved in the truing up for FY 2023-24 (Rs. Crore)

S. Actual Approved after

Particulars
No. Claimed truing up

1 ARR originally approved for FY 2023-24 22,175.66 22,175.66

2 Less: (Gap) / Surplus of FY 2021-22 (1,134.30) (1,134.30)
Less: Gain/(Loss) on account of Uncontrollable factors to be passed (3,932.95) (3,729.94)
3
on to Consumer
Less: Gain / (Loss) on account of Controllable factors to be passed 6.42 8.45
4
on to Consumer (1/3rd of Total Gain/(Loss))

5 Revised ARR for FY 2023-24 (1 - 2 - 3 - 4) 27,236.49 27,031.45

6 Revenue from Sale of Power 26,863.63 26,858.61
7 Other Income (Consumer related) 380.87 380.87
8 Total Revenue excluding Subsidy (6 + 7) 27,244.49 27,239.48
9 Agriculture Subsidy 457.36 457.36
GUVNL Profit / (Loss) including allocation of impact of CPF Trust 27.85 41.91
10
Loss

11 Total Revenue including Subsidy (8 + 9 + 10) 27,729.70 27,738.75

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S. Actual Approved after

Particulars
No. Claimed truing up

12 Recouped CPF Trust loss (37.73)

Revised (Gap)/ Surplus after treating gains/(losses) due to 493.22 745.03
13
Controllable/ Uncontrollable factors (11 -12 - 5)

The Revenue (Gap)/Surplus approved by the Commission after truing up for FY 2023-24, has been
considered for computing the cumulative Revenue (Gap)/Surplus for FY 2025-26, as elaborated in
subsequent Chapters of this Order.

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5. ARR for the control period from FY 2025-26 to FY 2029-30 and

determination of tariff for FY 2025-26

5.1 ARR for MYT Control Period from FY 2025-26 to FY 2029-30

In terms of Regulations 16 of the GERC (MYT) Regulations, 2024, forecast of Aggregate Revenue
Requirement for the entire Control Period and expected revenue from existing tariff or Fees and
Charges, expected revenue gap or surplus, for each year of the Control Period, shall be undertaken
in the Multi-Year Tariff Petition, provided that the category-wise tariff only for the first year of the
Control Period shall be determined by the Commission.

5.2 Submission of PGVCL

In accordance with above provision, PGVCL has submitted the petition for determination of ARR
for FY 2025-26 to FY 2029-30 and Tariff for FY 2025-26.

5.3 Estimation of ARR for MYT Control Period from FY 2025-26 to FY 2029-30
The projection of ARR for FY 2025-26 comprises the following elements:

• Energy projection
• Consumer profile
• Distribution loss
• Energy Requirement and Energy Balance
• Power purchase – Bulk Supply Tariff
• Transmission charges
• Capital expenditure and Funding of CAPEX
• O&M Expenses
• Depreciation (for assets prior to 01.04.2025 and w.e.f 01.04.2025)
• Interest on loan (for assets prior to 01.04.2025)
• Finance charges
• Interest on Working Capital

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• Return on Equity (for assets prior to 01.04.2025)

• Return on Capital Employed (for assets w.e.f 01.04.2025)
• Provision for Tax
The Commission has analysed the energy sales and components of expenditure and discussed the
same hereunder.

5.4 Energy Sales for MYT Control Period from FY 2025-26 to FY 2029-30
5.4.1 Approach for Sales Projections

PGVCL has submitted that methodology based on past trend has proved to be a reasonably accurate
and well-accepted method for estimating the load, number of consumers and energy consumption.
PGVCL has, therefore, estimated the energy sales, the number of consumers and connected load,
based on Compounded Annual Growth Rate (CAGR) during the past years. PGVCL has worked out
the growth rates considering FY 2023-24 as base year and the same has been applied on FY 2024-
25. Wherever the trend has seemed unreasonable or unsustainable, the growth rates have been
corrected by DISCOMs, to arrive at more realistic projections.

5.4.2 Summary of Growth and Projections

The growth rates observed in the energy sold to each consumer category have been analysed for the
purpose of projection of sales for FY 2025-26. The analysis of the growth rate lends insight into the
behaviour of each category and hence, forms the basis of forecasting the sales for each consumer
category.

5.4.3 Category-wise projected energy sales

The Break-up of the past sales and the CAGR growth rates for different periods (5 years, 4 years, 3
years, 2 years and year on year) thereof are as follows. CAGR has been computed for each consumer
category for the past 5-year period FY 2018-19 to FY 2023-24, the 4-year period FY 2019-20 to FY
2023-24, the 3-year period FY 2020-21 to FY 2023-24, and the 2-year period FY 2021-22 to FY
2023-24, along with the y-o-y growth rate of FY 2022-23 over FY 2023-24, as summarised in the
table below:

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Table 5-1: Historical category-wise units sold (MUs)

S. FY FY FY FY FY FY
Sales
No. 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Low Tension
1 RGP 3,771 3,791 4,178 4,044 4,201 4,274
2 GLP 195 196 142 166 207 217
3 Non-RGP & LTMD 3,721 3,672 3,582 4,014 4,340 4,744
4 Public Water Works 632 625 632 643 587 841
5 Agriculture-Unmetered 4,635 4,678 4,684 4,686 4,697 4,766
6 Agriculture-Metered 3,169 2,695 3,199 3,380 3,919 4,589
7 Electric Vehicle Charging 0 0 0 2
Sub-Total 16,124 15,657 16,419 16,932 17,951 19,433
High Tension
1 Industrial HT 12,486 11,965 11,495 14,506 17,517 17,739
2 Railway Traction - - - - -
3 Electric Vehicle Charging 1 3 8
Sub-Total 12,486 11,965 11,495 14,506 17,519 17,748
TOTAL 28,610 27,622 27,913 31,438 35,470 37,181

Table 5-2: Category-wise CAGR of Units Sold

S. No. Category 5 years 4 years 3 years 2 years 1 year
Low Tension
1 RGP 2.53% 3.04% 0.76% 2.80% 1.72%
2 GLP 2.07% 2.51% 14.97% 14.23% 4.69%
3 Non-RGP & LTMD 4.98% 6.61% 9.81% 8.72% 9.32%
4 Public Water Works 5.91% 7.74% 10.00% 14.37% 43.41%
5 Agriculture-Unmetered 0.56% 0.47% 0.58% 0.85% 1.47%
6 Agriculture-Metered 7.69% 14.23% 12.78% 16.53% 17.10%
7 Electric Vehicle Charging 0.00% 0.00% 2559.08% 2691.67% 2088.29%
Sub-Total 3.80% 5.55% 5.78% 7.13% 8.26%
High Tension
1 Industrial HT 7.28% 10.35% 15.56% 10.59% 1.27%
2 Railway Traction 0.00% 0.00% 0.00% 0.00% 0.00%

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S. No. Category 5 years 4 years 3 years 2 years 1 year

3 Electric Vehicle Charging 0.00% 0.00% 0.00% 302.60% 215.55%
Sub Total 7.29% 10.36% 15.58% 10.61% 1.30%
Total 5.38% 7.71% 10.03% 8.75% 4.82%

5.4.4 Consumer profile and connected load

PGVCL has also furnished the category-wise number of consumers and the connected load for the
past years and CAGR growth rates for different periods (5 years, 4 years, 3 years, 2 years and YoY)
as follows:

Table 5-3: Historical Category-wise No. of Consumers

S. FY FY FY FY FY FY
Sales
No. 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Low Tension
1 RGP 36,10,315 36,95,787 37,64,379 38,25,362 39,12,366 39,79,109
2 GLP 38,433 39,404 39,981 40,414 40,992 41,590
Non-RGP &
3 6,69,700 6,82,499 7,02,579 7,35,369 7,52,504 7,77,873
LTMD
Public Water
4 17,365 17,890 18,152 18,307 18,660 18,806
Works
Agriculture-
5 2,57,701 2,56,974 2,56,119 2,55,469 2,54,834 2,54,153
Unmetered
Agriculture-
6 6,91,223 7,74,802 8,14,289 8,28,494 8,63,136 8,95,536
Metered
Electric Vehicle
7 1 3 19 53
Charging
Sub-Total 52,84,737 54,67,356 55,95,500 57,03,418 58,42,511 59,67,120
High Tension
1 Industrial HT 5,650 5,963 6,290 6,878 7,559 8,011
2 Railway Traction - - - - - -
Electric Vehicle
3 1 5 5
Charging
Sub-Total 5,650 5,963 6,290 6,879 7,564 8,016
TOTAL 52,90,387 54,73,319 56,01,790 57,10,297 58,50,075 59,75,136

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Table 5-4: CAGR of no. of Consumers

S. No. Category 5 years 4 years 3 years 2 years 1 year
Low Tension
1 RGP 1.96% 1.86% 1.87% 1.99% 1.71%
2 GLP 1.59% 1.36% 1.32% 1.44% 1.46%
3 Non-RGP & LTMD 3.04% 3.32% 3.45% 2.85% 3.37%
4 Public Water Works 1.61% 1.26% 1.19% 1.35% 0.78%
5 Agriculture-Unmetered -0.28% -0.28% -0.26% -0.26% -0.27%
6 Agriculture-Metered 5.32% 3.69% 3.22% 3.97% 3.75%
7 Electric Vehicle Charging 0.00% 0.00% 275.63% 320.32% 178.95%
Sub-Total 2.46% 2.21% 2.17% 2.29% 2.13%
High Tension
1 Industrial HT 7.23% 7.66% 8.40% 7.92% 5.98%
2 Railway Traction 0.00% 0.00% 0.00% 0.00% 0.00%
3 Electric Vehicle Charging 0.00% 0.00% 0.00% 123.61% 0.00%
Sub Total 7.25% 7.68% 8.42% 7.95% 5.98%
Total 2.46% 2.22% 2.17% 2.29% 2.14%

Table 5-5: Historical Category-wise Connected Load (MW/MVA)

S. FY FY FY FY FY FY
Sales
No. 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Low Tension
1 RGP 3,542 3,708 3,874 4,028 4,260 4495.07
2 GLP 164 176 185 192 205 216.42
Non-RGP & 3,135 3,324 3,530 3,769 4,137 4398.85
3
LTMD
Public Water 186 194 199 204 210 215.03
4
Works
Agriculture- 2,046 2,053 2,055 2,057 2,063 2104.44
5
Unmetered
Agriculture- 4,742 5,295 5,565 5,658 5,902 6206.93
6
Metered

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Electric Vehicle 0 - 1 2.23

7
Charging
Sub-Total 13,815 14,751 15,407 15,908 16,777 17,639
High Tension
1 Industrial HT 4,090 4,079 4,301 4,791 5,999 6339.4135
Railway - - - - - 0
2
Traction
Electric Vehicle 3 5 4.52
3
Charging
Sub-Total 4,090 4,079 4,301 4,794 6,003 6,344
TOTAL 17,906 18,830 19,708 20,702.53 22,780.34 23,982.90

Table 5-6: CAGR of Connected Load

S. No. Category 5 years 4 years 3 years 2 years 1 year

Low Tension
1 RGP 4.88% 4.93% 5.08% 5.64% 5.53%
2 GLP 5.75% 5.24% 5.44% 6.13% 5.77%
3 Non-RGP & LTMD 7.01% 7.25% 7.61% 8.04% 6.32%
4 Public Water Works 2.89% 2.58% 2.60% 2.72% 2.36%
5 Agriculture-Unmetered 0.56% 0.62% 0.80% 1.14% 2.02%
6 Agriculture-Metered 5.53% 4.05% 3.71% 4.74% 5.17%
7 Electric Vehicle Charging 0.00% 0.00% 320.56% 0.00% 155.91%
Sub-Total 5.01% 4.57% 4.61% 5.30% 5.14%
High Tension
1 Industrial HT 9.16% 11.65% 13.80% 15.03% 5.68%
2 Railway Traction 0.00% 0.00% 0.00% 0.00% 0.00%
3 Electric Vehicle Charging 0.00% 0.00% 0.00% 20.75% -7.38%
Sub Total 9.17% 11.67% 13.83% 15.03% 5.67%
Total 6.02% 6.23% 6.76% 7.63% 5.28%

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5.4.5 Category-wise Projected Growth Rates

The growth rates considered by the petitioner for projection of energy sales, number of consumers
and connected load for MYT Control Period over the base number of FY 2023-24 and thereafter on
FY 2024-25 are given below:

Table 5-7: Growth rates used by PGVCL for MYT Control Period

S. No. Category Sales Consumers Connected Load

Low Tension
1 RGP 2.53% 1.96% 4.88%
2 GLP 2.07% 1.59% 5.75%
3 Non-RGP & LTMD 4.98% 3.04% 7.01%
4 Public Water Works 5.91% 1.61% 2.89%
5 Agriculture-Unmetered 0.00% 0.00% 0.00%
6 Agriculture-Metered 0.00% 0.00% 0.00%
7 Electric Vehicle Charging 10.00% 10.00% 10.00%
High Tension
1 Industrial HT 5.00% 5.00% 5.00%
2 Railway Traction 0.00% 0.00% 0.00%
3 Electric Vehicle Charging 10.00% 10.00% 10.00%

Category-wise Projections for Sales, Consumers, and Connected Load

The projected energy sales, consumers and connected load for MYT Control Period by applying
above mentioned growth rates on y-o-y basis over FY 2023-24 category-wise elements are shown in
the tables below:

Table 5-8: Sales projected by PGVCL for MYT Control Period (MU)

S. FY FY FY FY FY
Category
No. 2025-26 2026-27 2027-28 2028-29 2029-30
Low Tension
1 RGP 4,493 4,607 4,723 4,843 4,966

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S. FY FY FY FY FY
Category
No. 2025-26 2026-27 2027-28 2028-29 2029-30
2 GLP 226 230 235 240 245
3 Non-RGP & LTMD 5,228 5,488 5,762 6,048 6,349
4 Public Water Works 944 999 1,058 1,121 1,187
5 Agriculture-Unmetered 4,766 4,766 4,766 4,766 4,766
6 Agriculture-Metered 4,822 4,945 5,069 5,193 5,316
7 Electric Vehicle Charging 3 3 4 4 4
Sub-Total 20,481 21,039 21,617 22,214 22,833
High Tension
1 Industrial HT 19,558 20,536 21,562 22,641 23,773
2 Railway Traction - - - - -
3 Electric Vehicle Charging 10 11 12 13 15
Sub Total 19,568 20,547 21,575 22,654 23,787
Total 40,049 41,586 43,191 44,868 46,620

Table 5-9: No. of Consumers projected by PGVCL for MYT Control Period

S. FY FY FY FY FY
Category
No. 2025-26 2026-27 2027-28 2028-29 2029-30
Low Tension
1 RGP 41,36,968 42,18,230 43,01,089 43,85,575 44,71,721
2 GLP 42,924 43,607 44,301 45,006 45,723
3 Non-RGP & LTMD 8,25,886 8,50,993 8,76,862 9,03,519 9,30,985
4 Public Water Works 19,415 19,727 20,044 20,367 20,694
5 Agriculture-Unmetered 2,54,153 2,54,153 2,54,153 2,54,153 2,54,153
6 Agriculture-Metered 9,51,976 9,81,976 10,11,976 10,41,976 10,71,976
7 Electric Vehicle Charging 64 71 78 85 94
Sub-Total 62,31,386 63,68,757 65,08,504 66,50,681 67,95,346
High Tension
1 Industrial HT 8,832 9,274 9,737 10,224 10,736
2 Railway Traction - - - - -

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S. FY FY FY FY FY
Category
No. 2025-26 2026-27 2027-28 2028-29 2029-30
3 Electric Vehicle Charging 6 7 7 8 9
Sub Total 8,838 9,280 9,745 10,232 10,744
Total 62,40,225 63,78,037 65,18,248 66,60,914 68,06,090

Table 5-10: Connected Load projected by PGVCL for MYT Control Period (MW/MVA)

S. FY FY FY FY FY
Category
No. 2025-26 2026-27 2027-28 2028-29 2029-30
Low Tension
1 RGP 4,945 5,186 5,440 5,705 5,984
2 GLP 242 256 271 286 303
3 Non-RGP & LTMD 5,037 5,390 5,768 6,172 6,605
4 Public Water Works 228 234 241 248 255
5 Agriculture-Unmetered 2,104 2,104 2,104 2,104 2,104
6 Agriculture-Metered 6,593 6,798 7,003 7,208 7,413
7 Electric Vehicle Charging 3 3 3 4 4
Sub-Total 19,152 19,972 20,830 21,728 22,669
High Tension
1 Industrial HT 6,989 7,339 7,706 8,091 8,495
2 Railway Traction - - - - -
3 Electric Vehicle Charging 5 6 7 7 8
Sub Total 6,995 7,345 7,712 8,098 8,503
Total 26,146 27,317 28,542 29,826 31,172

5.5 Detailed Analysis of Energy Sales Projected

Based on the above submissions of the petitioner, the Commission now proceeds with the analysis
and approval of Sales for each category for the MYT Control Period.

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5.5.1 RGP- Residential

Petitioner’s submission

PGVCL has witnessed a growth in the units sold in the last five years in this category. The 5 years
CAGR growth rate between FY 2018-19 and FY 2023-24 is 2.53%. The company expects this trend
to continue in FY 2025-30.

The number of consumers added in the category has witnessed a 5 years CAGR of 1.96% between
FY 2018-19 and FY 2023-24. The company expects this trend to continue going forward.

The connected load added in the category has witnessed a 5 years CAGR of 4.88% between FY
2018-19 and FY 2023-24. The company expects this trend to continue going forward.

Commission’s Analysis

The growth during the last 5 years in energy sales is 2.53% and PGVCL expects the same growth
rate to be continued for the MYT Control Period. The Commission has examined the trend of sales
growth between FY 2018-19 to FY 2023-24 and finds the growth rates considered for future
projections as appropriate.

The Commission, therefore, approves the energy sales to the RGP-residential category as given
in the table below:

Table 5-11: Energy sales approved for RGP category during MYT Control Period (MU)
Category FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30
RGP 4,493 4,607 4,723 4,843 4,966

5.5.2 GLP-General Lighting Purpose

Petitioner’s submission

The Petitioner has submitted that the 5-year CAGR for the purpose of projection on the units sold is
estimated at 2.07% between FY 2018-19 and FY 2023-24.

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However, in case of consumer growth the number of consumers added in the category has witnessed
a 5 years CAGR of 1.59% between FY 2018-19 and FY 2023-24. The company expects this trend to
continue going forward.

The connected load added in the category has also witnessed a 5 years CAGR of 5.75% between FY
2018-19 and FY 2023-24. The company expects this trend to continue going forward.

Commission’s Analysis

PGVCL expects the five-year growth rate to continue for the MYT Control Period. The Commission
has examined the trend of sales growth in the past years and finds the growth rate considered
appropriate.

The Commission approves the energy sales to GLP-General Lighting Purpose category as
given in the table below:

Table 5-12: Energy sales approved for GLP category during MYT Control Period (MU)
Category FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30
GLP 226 230 235 240 245

5.5.3 Non- RGP & LTMD

Petitioner’s submission

PGVCL submitted that for the purpose of projection of units sold, 5-year CAGR between FY 2018-
19 and FY 2023-24 has been considered which is 4.98%. The company expects this trend to continue
in FY 2025-30.

The number of consumers added in the category has witnessed a 5-year CAGR of 3.82% between
FY 2018-19 and FY 2023-24. The company expects this trend to continue going forward.

The connected load added in the category has witnessed a 5-year CAGR of 7.01% between FY 2018-
19 and FY 2023-24. The company expects this trend to continue going forward.

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Commission’s Analysis

The CAGR growth during past 5 years from FY 2018-19 to FY 2023-24 is 4.93%, and PGVCL
expects the same growth rate to continue during the MYT Control Period. The Commission has
examined the trend of sales growth between FY 2018-19 to FY 2023-24 and finds the growth of
4.93% adopted by PGVCL as reasonable.

The Commission approves the energy sales for Non-RGP & LTMD category as given in the
table below:

Table 5-13: Energy sales approved for Non-RGP & LTMD category during MYT Control Period
(MU)
Category FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30
Non-RGP &
5,228 5,488 5,762 6,048 6,349
LTMD

5.5.4 Public Water Works

Petitioner’s submission

PGVCL submitted that for the purpose of projection of units sold, 5-year CAGR for the category
comes to 5.91% between FY 2018-19 and FY 2023-24. The company expects this trend to continue
going forward.

Similarly, the growth rate for the number of consumers in the category has been considered to be
1.61% as the 5-year CAGR between FY 2018-19 and FY 2023-24.

Further, the 5-year CAGR growth rate considered for connected load is 1.61%.

Commission’s Analysis

The CAGR growth during past 5 years between FY 2018-19 and FY 2023-24 worked out by the
Commission is 5.91%. The Commission has examined the trend of sales growth between FY 2018-

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19 and FY 2023-24 and finds the growth rate of 5-year CAGR considered for future projections as
appropriate.

The Commission approves the energy sales for PWW category as given in the table below:

Table 5-14: Energy sales approved for PWW category during MYT Control Period (MU)
Category FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30
PWW 944 999 1,058 1,121 1,187

5.5.5 Agriculture

Petitioner’s submission

For the unmetered category, PGVCL has decided not to release any new connections therefore has
assumed a growth rate of 0% to project the sales, no. of consumers and connected load during the
control period.

For the metered category, PGVCL growth rate has been assumed based on the no. of connection
anticipated for MYT Control Period. The sales, number of consumers, and connected load for the
metered category during the control period are projected using this growth rate, which aligns with
anticipated connection releases.

Commission’s Analysis

In Agriculture Consumer category, there is a mix of un-metered and metered consumers. The
consumption of unmetered category has been considered at the same level as in FY 2023-24, as
PGVCL has mentioned that there would be no additional connections under unmetered category in
future years. The Commission has considered the approach considered by PGVCL and accordingly,
approves sales as projected by PGVCL.

For consumption under metered category, the Commission has examined the methodology
considered by PGVCL, which is same as that adopted by the Commission in the previous Tariff

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Order. Therefore, the Commission has considered the sales for metered Agriculture consumer
category same as submitted by PGVCL

The Commission approves the energy sales for Agriculture - Unmetered and Metered category
as given in the table below:

Table 5-15: Energy sales approved for Agriculture category during MYT Control Period (MU)
Category FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30
Agriculture-
4,766 4,766 4,766 4,766 4,766
Unmetered
Agriculture-
4,822 4,945 5,069 5,193 5,316
Metered

5.5.6 Industrial HT

Petitioner’s submission

PGVCL submitted that the Industrial HT category has experienced variations in sales over the past
five years, largely due to the presence of open access, economic fluctuations, and other external
factors. For projecting units sold during the MYT control period, a subjective growth rate of 5% has
been considered. The decision to use a subjective rate is based on a balanced assessment of historical
trends and the ongoing economic conditions.

For the number of consumers in the Industrial HT category, a subjective growth rate of 5% has been
adopted for the MYT control period.

For the connected load in the Industrial HT category, a subjective growth rate of 5% has also been
applied for the MYT control period. Similar to consumer growth, connected load growth is expected
to follow a steady trajectory as the industrial sector recovers and adapts to the post-pandemic
scenario.

Commission’s Analysis

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The different CAGRs for energy sales range between is 15.56% to 1.27% for this category, which is
quite varying for a trend. PGVCL envisages that a growth rate of 5% shall indicate a normal growth
rate in this category and has thus adopted growth rate of 5% for projection of energy sales for MYT
Control Period. The Commission finds growth rate considered by PGVCL as appropriate and
approves the energy sales for Industrial HT category as given in the table below:

Table 5-16: Energy sales approved for Industrial HT category during MYT Control Period (MU)
Category FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30
Industrial HT 19,558 20,536 21,562 22,641 23,773

5.5.7 Electric Vehicle Charging category (LT & HT)

Petitioner’s submission

PGVCL submitted that as on FY 2023-24 the consumption from EV Charging for PGVCL is
estimated around 10.67 Mus. As the use of electric vehicle adoption is still to attain its maturity state
within consumers, growth estimations have therefore been done considering a 10% growth rate

Commission’s Analysis

The Commission has examined the submission of PGVCL in this regard and approves sales as
projected by PGVCL.

5.5.8 Category-wise approved Sales for MYT Control Period

Total energy sales approved by the Commission based on the above analysis is summarised in the
table below:

Table 5-17: Projection of Sales approved by the Commission for MYT Control Period (MU)

S. FY FY FY FY FY
Category
No. 2025-26 2026-27 2027-28 2028-29 2029-30
Low Tension

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S. FY FY FY FY FY
Category
No. 2025-26 2026-27 2027-28 2028-29 2029-30
1 RGP 4,493 4,607 4,723 4,843 4,966
2 GLP 226 230 235 240 245
3 Non-RGP & LTMD 5,228 5,488 5,762 6,048 6,349
4 Public Water Works 944 999 1,058 1,121 1,187
5 Agriculture-Unmetered 4,766 4,766 4,766 4,766 4,766
6 Agriculture-Metered 4,822 4,945 5,069 5,193 5,316
7 Electric Vehicle Charging 3 3 4 4 4
Sub-Total 20,481 21,039 21,617 22,214 22,833
High Tension
1 Industrial HT 19,558 20,536 21,562 22,641 23,773
2 Railway Traction - - - - -
3 Electric Vehicle Charging 10 11 12 13 15
Sub Total 19,568 20,547 21,575 22,654 23,787
Total 40,049 41,586 43,191 44,868 46,620

5.6 Distribution Losses

PGVCL has projected the distribution losses for MYT Control Period as given in the table below:

Table 5-18: Projection of Distribution Loss (%)

Particulars FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30

Distribution Loss 15.30% 15.10% 14.90% 14.70% 14.50%

Petitioner’s submission

PGVCL has consistently endeavoured to reduce its distribution losses in the past, and these
efforts will continue to be strengthened during the MYT control period. PGVCL has
projected its losses accordingly.

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Commission’s Analysis

The Commission in the Tariff Order dated 1st June, 2024, had approved the distribution loss at
15.50% for FY 2024-25. Also, the Commission had approved the distribution loss at 15.15% for FY
2023-24. Considering the actual distribution losses incurred during past year with respect to the
approved distribution losses, and the capital investments being made regularly by PGVCL, the
Commission finds it appropriate to project distribution losses for MYT Control Period, as shown in
the table below:

Table 5-19: Approved Distribution Loss (%) for MYT Control Period
Particulars FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30
Distribution Loss 13.65% 12.15% 10.65% 9.15% 7.65%

5.7 Energy Balance and Energy Requirement Projection

The total energy requirement of the Distribution Company to meet the total demand of its consumers
is the sum of the estimated energy sales and the system losses (transmission & distribution loss) as
approved by the Commission.

Petitioner’s submission

PGVCL has submitted that to arrive at the total energy requirement, the total projected sales have
been grossed up by factoring in transmission and distribution losses. It may be noted that intra-state
transmission losses are assumed as per the projections provided by GETCO in its ARR Petition for
MYT Control Period. The inter-state transmission losses viz. PGCIL pooled losses are assumed at
same level as in FY 2023-24 for the duration of MYT Control Period. Further, the distribution losses
are taken as per the projections above.

DISCOM has signed PPAs under Small-scale Distributed Solar Projects (SSDSP) and power
generation will also be available from solar installations under the KUSUM scheme at Distribution
level over and above the power purchase from GUVNL. Based on the information provided above,
Energy Balance of PGVCL for each year of the MYT control period is as shown below:

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Table 5-20: Energy Balance for MYT Control Period as submitted by PGVCL (MUs)
FY FY FY FY FY
S. No. Particulars Unit
2025-26 2026-27 2027-28 2028-29 2029-30
1 Energy Sales MUs 40,048.65 41,585.82 43,191.23 44,868.25 46,620.44
MUs 7,234.29 7,396.30 7,562.27 7,732.28 7,906.39
2 Distribution Losses
% 0.15 0.15 0.15 0.15 0.15
3 Energy Requirement MUs 47,282.94 48,982.12 50,753.50 52,600.53 54,526.83
Less: Power Purchase
4 MUs 1,498.22 2,435.54 2,435.54 2,435.54 2,435.54
from SSDSP
Power Purchase required
5 MUs 45,784.72 46,546.57 48,317.96 50,164.99 52,091.28
from GUVNL
MUs 1,598.28 1,624.87 1,686.71 1,751.18 1,818.43
6 Transmission Losses
% 0.03 0.03 0.03 0.03 0.03
Total Energy to be input
7 at GETCO Transmission MUs 47,382.99 48,171.45 50,004.66 51,916.17 53,909.71
System
Pooled Losses in PGCIL MUs 845.74 859.81 892.53 926.65 962.23
8
System % 0.02 0.02 0.02 0.02 0.02
Add: Power Purchase
9 MUs 1,498.22 2,435.54 2,435.54 2,435.54 2,435.54
from SSDSP
Total Energy
10 MUs 49,726.95 51,466.80 53,332.74 55,278.37 57,307.49
Requirement

PGVCL further submitted that the power purchase is assumed to be carried out in a consolidated
manner and hence, energy requirement of all four distribution companies has been aggregated to
arrive at consolidated energy requirement for all the four distribution companies as shown below:

Table 5-21: Consolidated Energy Requirement as submitted by PGVCL for MYT Control Period
(MUs)
FY FY FY FY FY
Discom
2025-26 2026-27 2027-28 2028-29 2029-30
DGVCL 36,471 38,575 40,938 43,459 46,149
MGVCL 15,645 16,089 16,732 17,480 18,262
PGVCL 48,229 49,031 50,897 52,843 54,872

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UGVCL 34,442 35,564 37,118 38,747 40,457

Total Requirement for
all Discoms from 1,34,786 1,39,259 1,45,686 1,52,529 1,59,740
GUVNL

Commission’s Analysis

PGVCL has submitted the energy balance and the total energy requirement as discussed above. The
Commission considering the approved projection of energy sales and approved distribution losses as
discussed above, has approved the energy requirement for MYT Control Period, as shown in the
table below:

Table 5-22: Approved Energy requirement for MYT Control Period (MUs)

Particulars Unit FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30

Energy Sales MUs 40,049 41,586 43,191 44,868 46,620

Distribution MUs 6,331 5,751 5,148 4,519 3,862

Losses % 13.65% 12.15% 10.65% 9.15% 7.65%
Energy
MUs 46,379 47,337 48,339 49,387 50,482
Requirement

For energy balancing, the Commission has considered the Intra-State Transmission Loss and the
pooled loss level same as approved for FY 2023-24. The approved Energy Balance for MYT Control
Period is shown in the table below:

Table 5-23: Approved Energy Balance for PGVCL for MYT Control Period
FY FY FY FY FY
S. No. Particulars Unit
2025-26 2026-27 2027-28 2028-29 2029-30
1 Energy Sales MUs 40,049 41,586 43,191 44,868 46,620
MUs 6,331 5,751 5,148 4,519 3,862
2 Distribution Losses
% 13.65% 12.15% 10.65% 9.15% 7.65%
3 Energy Requirement MUs 46,379 47,337 48,339 49,387 50,482

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FY FY FY FY FY
S. No. Particulars Unit
2025-26 2026-27 2027-28 2028-29 2029-30
Less: Power Purchase
4
from SSDSP
MUs 1,498.22 2,435.54 2,435.54 2,435.54 2,435.54
Power Purchase
5
required from GUVNL
MUs 44,881 44,902 45,904 46,952 48,047

MUs 1,567 1,567 1,602 1,639 1,677

6 Transmission Losses
% 3.37% 3.37% 3.37% 3.37% 3.37%
Total Energy to be input
7 at GETCO MUs 46,448 46,469 47,506 48,591 49,724
Transmission System

Pooled Losses in MUs 829 829 848 867 888

8
PGCIL System % 1.754% 1.754% 1.754% 1.754% 1.754%
Add: Power Purchase
9
from SSDSP
MUs 1,498.22 2,435.54 2,435.54 2,435.54 2,435.54
Total Energy
10
Requirement
MUs 48,775 49,734 50,790 51,893 53,047

The Commission has approved the energy balance and the total energy requirement for MYT Control
Period for other three State DISCOMs in their respective Orders. Based on the same, the approved
consolidated energy requirement for all the four DISCOMs is as shown below:

Table 5-24: Approved Consolidated Energy Requirement for MYT Control Period (MUs)
FY FY FY FY FY
Discom
2025-26 2026-27 2027-28 2028-29 2029-30
DGVCL 35,222 37,254 39,541 41,981 44,584
MGVCL 15,505 15,938 16,554 17,196 17,866
PGVCL 47,277 47,299 48,354 49,458 50,612
UGVCL 33,924 34,881 36,257 37,696 39,202
Total Requirement for
all Discoms from 1,31,927 1,35,371 1,40,707 1,46,331 1,52,264
GUVNL

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5.8 Estimation of ARR for MYT Control Period from FY 2025-26 to FY 2029-30
The components for the calculation of total expenses for determination of ARR for MYT Control
Period are as follows:

• Power Purchase Cost

• O&M Expenses

• Depreciation (for assets prior to 01.04.2025 and w.e.f 01.04.2025)

• Interest on loan (for assets prior to 01.04.2025)

• Finance charges

• Interest on Working Capital

• Return on Equity (for assets prior to 01.04.2025)

• Return on Capital Employed (for assets w.e.f 01.04.2025)

5.9 Power Purchase Cost for MYT Control Period - Petitioner’s Submission
5.9.1 Power Purchase from Local Sources

PGVCL submitted that the State Government has notified the Policy for development of small scale
distributed solar projects vide GR dated 6th March 2019 to allow individuals, company or body
corporate or association or body of individuals, cooperative society of individual / farmers or
artificial juridical persons to set up solar plant of capacity from 0.5 MW to 4 MW for sale of energy
to the DISCOMs.

Therefore, DISCOMs have signed PPAs under SSDSP and power generation will be available at
Distribution level. Based on the quantum of PPAs signed, expected Commercial Date of Operation
(COD) and Capacity Utilization Factor (CUF), power generation from SSDSP has been estimated as
shown in the Table below:

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Table 5-25: Local Power Purchase for FY 2025-26

S. No. Particulars Unit DGVCL MGVCL PGVCL UGVCL Total

MW Capacity tied-up under
1 MW - - 476 152 628
SSDSP
2 Expected CUF % 20% 20% 20% 20%

Expected Generation from

3 MU - - 833.95 266.30 1,100.25
SSDSP

Other Local Purchase (23-

4 MU 196.51 298.42 664.27 427.05 1,586.25
24)

5 Power Purchase Rate Rs./kWh 3.00 3.00 3.00 3.00

6 New SSDSP in 25-26 Rs. Crore - - 250.19 79.89 330.08

7 Existing Local Purchase Rs. Crore 47.63 73.86 183.35 120.06 424.90

8 Power Purchase Cost Rs. Crore 47.63 73.86 433.54 199.95 754.98
Other Local Purchase Mus 196.51 298.42 664.27 427.05 1,586.25
9
(2023-24)
10 Total Local Purchase Mus 196.51 298.42 1,498.22 693.35 2,686.50

5.9.2 Power Purchase Sources of GUVNL

The various sources of power purchase by GUVNL on behalf of four Distribution Companies
consists of (i) Generating Plants of GSECL, (ii) Central Sector Power Plants- NTPC, NPC and
SSNNL, (iii) Renewable sources of power – Solar, Wind, Other RE Sources, (iv) IPP’s, and (v)
Power tied up through competitive bidding, etc. The power purchase sources have been differentiated
into existing capacity and additional capacity envisaged during the Control Period.

(I) Existing capacity with GUVNL

The existing contracted capacity tied up by GUVNL as on 31st March 2024 is 31,429 MW. Given
below are the names of the existing power plants, their operational parameters, capacity allocated to
GUVNL, their fixed cost along with the variable cost of generation per unit as per actual of FY 2023-
24. Necessary adjustment has been made in fixed cost in case of higher/lower payment made during
FY 2023-24 due to specific reasons.

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Table 5-26: Existing Capacity Allocation with GUVNL

Capacity Fixed
Auxiliary Variable
Sr. allocated Cost
Name of the Station Consumption PLF (%) Cost
No. to GUVNL (Rs.
(%) (Rs./kWh)
(MW) Crore)
GSECL
1 GSECL Gandhinagar - 5 210 9.50% 65.40% 127 4.43
2 GSECL Wanakbori - 7 210 9.50% 76.46% 76 4.53
3 GSECL Utran Expan 375 3.00% 8.55% 204 9.80
4 GSECL Dhuvaran - 7 107 4.00% 2.37% 59 10.63
5 GSECL Dhuvaran - 8 112 3.00% 2.20% 65 10.47
6 GSECL Ukai 610 9.00% 51.60% 392 4.40
7 GSECL Ukai Expan 500 6.00% 56.79% 291 3.85
8 GSECL Gandhinagar 3-4 420 9.50% 46.38% 290 4.58
9 GSECL Wanakbori 1-6 1,260 9.00% 52.00% 625 4.60
10 GSECL Sikka Expansion 500 9.00% 17.83% 601 6.67
11 GSECL Kutch Lignite 75 12.00% 47.81% 128 4.40
12 GSECL Kutch Lignite Exp unit 4 75 12.00% 11.73% 16 11.96
13 GSECL Ukai Hydro 305 0.60% 21.95% 31 0.00
14 GSECL Kadana Hydro 242 1.00% 12.38% 59 0.00
15 GSECL Dhuvaran CCPP III 376 3.00% 7.56% 118 9.70
16 GSECL BLTPS 500 11.00% 40.32% 334 3.78
17 GSECL Wanakbori - 8 800 5.25% 69.95% 747 3.80
Sub Total 6,677 4,162

IPP's
1 Gujarat State Energy Generation 156 2.90% 0.00% 0
Gujarat State Energy Generation
2 351 3.00% 1.00% 118 8.69
Expansion
Gujarat Industries Power Co Ltd (165
3 0 0.00% 0.00% 0
MW)

4 Gujarat Industries Power Co Ltd (SLPP) 250 10.00% 64.30% 138 2.69

5 Gujarat Mineral Development Corp. 250 11.00% 17.08% 26 3.78

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Capacity Fixed
Auxiliary Variable
Sr. allocated Cost
Name of the Station Consumption PLF (%) Cost
No. to GUVNL (Rs.
(%) (Rs./kWh)
(MW) Crore)
Gujarat Industries Power Co Ltd (145
6 28 2.90% 0.00% 0
MW)
Gujarat Industries Power Co Ltd (SLPP -
7 250 10.00% 71.43% 217 2.73
Exp)
8 GPPC Pipavav 702 3.00% 4.25% 239 9.91
Sub Total 1,987 737
Central Sector
1 NPC-Tarapur 1 & 2 160 9.00% -0.92% - -
2 NPC-Tarapur 3 & 4 274 9.00% 85.45% - 3.42
3 NPC-Kakrapar 601 8.00% 45.50% - 4.08
4 NTPC-Vindhyachal - I 248 9.00% 85.98% 170 1.68
5 NTPC-Vindhyachal - II 253 7.05% 90.04% 156 1.61
6 NTPC-Vindhyachal - III 280 6.25% 95.26% 250 1.60
7 NTPC-Korba 381 7.04% 89.43% 167 1.60
8 NTPC-Korba -III 130 6.25% 96.79% 122 1.57
9 NTPC-Kawas 187 2.75% 1.04% 124 11.45
10 NTPC-Jhanor 237 2.75% 1.21% 207 11.61
11 NTPC-Sipat-I 577 6.25% 82.91% 601 1.55
12 NTPC-Sipat - II 286 6.25% 91.00% 264 1.61
13 NTPC-Kahlagaon I 141 9.00% 93.45% 110 2.87
14 NTPC-Vindhyachal - IV 259 6.25% 86.99% 407 1.53
15 NTPC-Mauda 456 6.25% 88.70% 578 3.50
16 NTPC-Vindhyachal - V 103 7.25% 86.50% 176 1.63
17 NTPC-Mauda II 530 6.25% 76.88% 631 3.56
18 NTPC-Solapur 25 6.25% 61.40% 127 4.82
19 NTPC-Gadarwara 334 6.25% 78.65% 536 3.75
20 NTPC-LARA 186 6.25% 84.56% 274 3.82
21 NTPC-Khargone 295 6.25% 73.02% 495 4.06
22 NTPC-Farakka - 3 60 6.25% 73.54% 66 3.28
23 NTPC-Kahalgaon II 151 6.25% 73.62% 116 3.16
24 NTPC-Farakka - 1 & 2 255 6.78% 96.79% 196 3.43
25 NTPC-Talcher 24 7.05% 82.84% 14 1.81
26 NTPC-Darlipalli 14 6.25% 86.21% 41 1.16

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Capacity Fixed
Auxiliary Variable
Sr. allocated Cost
Name of the Station Consumption PLF (%) Cost
No. to GUVNL (Rs.
(%) (Rs./kWh)
(MW) Crore)
27 NTPC-Unchahar - 1 63 9.00% 49.18% 36 4.69
28 NTPC-Tanda - 2 44 5.75% 87.55% 91 3.64
29 NTPC-Barah - 1 164 6.25% 64.28% 198 3.20
30 NTPC-Dadri - 1 577 8.50% 59.52% 316 4.82
31 Sardar Sarovar Narmada Nigam Ltd 232 0.70% 17.50% - 2.05
32 Nabinagar Power Generating Co Ltd 50 6.25% 85.25% 231 2.65
33 CSGS (MoP Allocation) 300 1.00% 57.98% 53.07 2.86
Sub Total 7,876 6,754
Others
1 Captive Power 8 0.00% 0.00% - 6.61
Renewable
1 Wind Farms 4,280 0.00% 21.11% - 3.52
2 Solar 3,981 0.00% 24.31% - 3.92
3 Small/Mini Hydel 22 0.00% 36.34% - 3.69
4 Biomass 30 0.00% 0.00% -
5 Waste to Energy 8 0.00% 45.90% - 3.67
6 HPO - 0.00% 0.00% - -
Competitive Bidding
1 Adani Power Mundra Ltd (Bid 1) 1,200 0.00% 41.86% 662 4.37
2 Adani Power Mundra Ltd (Bid 2) 1,234 0.00% 51.15% 741 4.11
3 Essar Power Gujarat Ltd 1,122 0.00% 38.16% 299 4.71
4 ACB India Ltd 200 0.00% 67.22% 129 0.66
5 Tata Power Company Ltd 1,805 0.00% 64.49% 985 4.02
6 Medium Term Power Purchase 1,000 0.00% 58.04% 416 1.79
7 Power Exchange - 0.00% 90.00% 647 6.02
8 Short term power purchase - 0.00% 0.00% - 6.63

9 Banking of Power - 0.00% 0.00% 0.00

-
10 Power Purchase Cost Others - 0.00% 308 0.00
Sub Total 14,889 3,539
Total 31,429 23,407

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(II) Capacity Addition

The capacity addition envisaged during the MYT control period from FY 2025-26 to FY 2029-30 is
approximately 22,733 MW. The operational parameters, annual fixed costs, and variable costs per
unit for these plants are outlined below. The Annual Fixed Cost and the availability from the
envisaged capacity during the MYT control period have been considered on a year-wise basis,
factoring in the month of commissioning for each project. Key plants include renewable energy
projects, including solar, wind, and hybrid technologies, as well as additions from conventional
sources such as coal and hydro.

Table 5-27: Additional Capacity envisaged for MYT Control Period

Rated Capacity
S. Fuel Date of PLF
Name of the Station Ownership allocated to
No. Type Commissioning (%)
GUVNL (MW)
HR Sabarmati Private
1 Private Solar 120 Aug-24 27.00%
Limited
2 ABReL SPV2 Limited Private Solar 350 Sep-24 30.00%
Enren Energy Private
3 Private Solar 350 Sep-24 32.14%
Limited
Solarcraft Power India 2
4 Private Solar 120 Oct-24 28.44%
Private Limited
HR Sabarmati Private
5 Limited
Private Solar 240 Oct-24 30.00%
Solarcraft Power India 9
6 Pvt Ltd
Private Solar 120 Oct-24 28.30%
SSDSP Scheme 2019
7 projects
Private SSDSP 64 Nov-24 19.00%
NTPC Renewable Energy
8 Ltd.
Central Solar 150 Dec-24 27.91%
GSECL Waste land
9 Projects
State Solar 553 Dec-24 23.00%
HR Sabarmati Private
10 Limited
Private Solar 188 Jan-25 27.00%
Gujarat Industries Power
11 Company Ltd
State Solar 300 Jan-25 28.00%

12 NHPC Limited Central Solar 200 Jan-25 27.00%

SJVN Green Energy
13 Limited
Central Solar 200 Jan-25 28.80%
NTPC Renewable Energy
14 Limited
Central Solar 200 Jan-25 29.94%
Solarcraft Power India 21
15 Pvt Ltd
Private Solar 120 Feb-25 28.33%
Avaada Sunrise Energy
16 Private Limited
Private Solar 280 Feb-25 27.00%

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Rated Capacity
S. Fuel Date of PLF
Name of the Station Ownership allocated to
No. Type Commissioning (%)
GUVNL (MW)
NTPC Renewable Energy
17 Ltd.
Central Solar 200 Mar-25 27.69%
AEW India West One Pvt
18 Ltd.
Private Solar 80 Mar-25 28.50%

19 SJVN Ltd. Central Solar 70 Mar-25 28.80%

20 SJVN Limited Central Solar 100 Mar-25 28.00%
21 ABReL SPV2 Limited Private Solar 150 Mar-25 30.00%
22 SJVN Limited Central Solar 260 Mar-25 28.80%
Gujarat Industries Power
23 Company Ltd
State Solar 300 Mar-25 28.00%
Sprng Green Power Private
24 Limited
Private Solar 300 Apr-25 27.00%
Annecy Solar private
25 Limited
Private Solar 200 Apr-25 27.00%

26 KPI Green Energy Ltd Private Solar 200 May-25 23.33%

27 SAEL Industries Limited Private Solar 400 May-25 30.00%
28 SAEL Industries Limited Private Solar 400 May-25 30.00%
ReNew Solar (Shakti
29 Three) Private Limited
Private Solar 300 Jun-25 28.00%
ReNew Samir Shakti
30 Private Limited
Private Solar 100 Jun-25 28.00%

31 SECI Central Solar 600 Jun-25 30.00%

Mahindra Susten Private
32 Limited
Private Solar 200 Aug-25 25.50%

33 Coal India Ltd. Central Solar 100 Oct-25 28.00%

34 NTPC Central Solar 500 Dec-25 30.00%
35 NLC India Limited Private Solar 600 Jan-26 30.97%
SolairedirectEnergy India
36 Private Limited
Private Solar 200 Jan-26 30.00%

37 NHPC LIMITED Central Solar 200 Jan-26 27.00%

38 JSW Neo Energy Limited Private Solar 300 Jan-26 27.50%
SJVN GREEN ENERGY
39 LIMITED
Central Solar 200 Jan-26 28.80%
NTPC Renewable Energy
40 Limited
Central Solar 225 Jan-26 30.20%
SJVN Green Energy
41 Limited
Central Solar 200 Apr-26 28.80%
Hinduja Renewables
42 Energy Pvt Ltd
Private Solar 280 Apr-26 27.00%
Avaada Energy Private
43 Limited
Private Solar 200 Apr-26 27.00%

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Rated Capacity
S. Fuel Date of PLF
Name of the Station Ownership allocated to
No. Type Commissioning (%)
GUVNL (MW)
Solarcraft Power India 5
44 Pvt Ltd
Private Solar 100 Apr-26 28.75%
TEQ Green Power Private
45 Limited
Private Solar 200 Jun-26 27.00%

46 SECI Central Solar 700 Sep-26 22.00%

47 KPI Green Energy Limited Private Solar 250 Oct-26 17.00%
Solarcraft Power India 5
48 Private Limited
Private Solar 80 Oct-26 27.00%
Avaada Energy Private
49 Limited
Private Solar 400 Oct-26 29.67%

50 NRC Industries Limited Private Solar 10 Oct-26 28.50%

Hinduja Renewables
51 Energy Private Limited
Private Solar 260 Oct-26 25.86%
SJVN Green Energy
52 Limited
Central Solar 500 Dec-27 29.00%

53 SAEL Industries Limited Private Solar 400 Dec-27 30.00%

54 Rajpur Renewables Pvt Ltd Private Wind 30 Dec-24 29.00%
Juniper Green Energy Pvt
55 Ltd
Private Wind 70 Aug-24 37.20%
Solarcraft Power India 3
56 Pvt Ltd
Private Wind 100 Dec-24 38.00%
Solarcraft Power India 3
57 Pvt Ltd
Private Wind 100 Jun-25 38.00%
TEQ Green Power XII Pvt
58 Ltd
Private Wind 43 Aug-24 36.25%
TEQ Green Power XII Pvt
59 Ltd
Private Wind 27 Oct-24 36.25%
Project Twelve Renewable
60 Power Pvt Ltd
Private Wind 50 Oct-24 40.09%
Project Twelve Renewable
61 Power Pvt Ltd
Private Wind 90 Dec-24 40.09%
ACME Pokhran Solar Pvt
62 Ltd
Private Wind 50 Aug-25 39.05%
Juniper Green Energy Pvt
63 Ltd
Private Wind 50 May-25 37.20%

64 WYN Renewables Private Wind 100 May-25 32.00%

65 ACME Eco Clean Pvt Ltd Private Wind 100 Aug-25 37.10%
Solarcraft Power India 3
66 Pvt Ltd
Private Wind 50 May-25 38.00%
Juniper Green Energy Pvt
67 Ltd
Private Wind 70 Feb-26 37.20%
SJVN Green Energy
68 Limited
Central Wind 100 Feb-26 27.50%

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Rated Capacity
S. Fuel Date of PLF
Name of the Station Ownership allocated to
No. Type Commissioning (%)
GUVNL (MW)
SOLARCRAFT POWER
69 INDIA 14 PRIVATE Private Wind 40 Feb-26 39.00%
LIMITED
Evergreen Renewables
70 Private Limited
Private Wind 30 Oct-26 31.33%

71 Alfanar Power Limited Private Wind 50 Jul-26 39.00%

Juniper Green Kite Pvt Ltd
72 SPV of Juniper Green Private Wind 90 Jun-26 31.33%
Energy Pvt Ltd
73 KPI Green energy Ltd Private Hybrid 50 Jul-26 37.00%
74 Juniper Green energy ltd. Private Hybrid 150 Jul-26 30.00%
75 KPI Green energy Ltd Private Hybrid 370 Oct-26 37.00%
76 Juniper Green energy ltd. Private Hybrid 120 Oct-26 30.00%
Hinduja Renwables Pvt
77 Ltd.
Private Hybrid 150 Oct-26 30.00%

78 JSW Neo energy Ltd. Private Hybrid 192 Oct-26 30.00%

79 Coal India Limited Central Solar 300 Dec-27 28.00%
80 GIPCL State Solar 500 Dec-27 28.00%
Shri Chalthan khand
81 Udhyog
Private Bagasse 5 Sep-25 70%/80%
Shree Khedut Sahakri
82 Khand Udyog Mandli Ltd.
Private Bagasse 12 Mar-26 70%/80%
Shree Narmada Khand
83 Udyog Pvt Ltd
Private Bagasse 15 Sep-26 70%/80%
Jindal Urban Waste
84 Management ( Private WTE 15 Sep-24 65%/80%
Ahmedabad) Ltd
Goodwatts WTE
85 Ahmedabad Pvt Ltd. Private WTE 15 Mar-25 65%/75%
(GWAPL)
Goodwatts WTE Vadodara
86 Pvt Ltd (GWVPL)
Private WTE 15 Mar-25 65%/75%
Goodwatts WTE Rajkot
87 Pvt Ltd (GWRPL)
Private WTE 15 Mar-25 65%/75%

88 D B Power Private Coal 293 Sep-24 90%

89 NHPC Subansiri Central Hydro 162.0 Mar-25 42%
90 NHPC Rangit-IV Central Hydro 30.9 May-25 48%
91 NHPC Pakaldul Central Hydro 133.2 Jul-25 38%
92 NHPC Kiru Central Hydro 162.9 Mar-26 42%
93 NTPC Talcher III Central Coal 154 Mar-27 85%
94 NHPC Teesta IV Central Hydro 128.7 Aug-26 55%

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Rated Capacity
S. Fuel Date of PLF
Name of the Station Ownership allocated to
No. Type Commissioning (%)
GUVNL (MW)
95 NHPC Ratle Central Hydro 113.1 Dec-27 42%
96 NHPC Kwar Central Hydro 72.0 Dec-27 42%
97 DVC Raghunathpur Central Coal 300 Mar-28 85%
98 DVC Koderma Central Coal 75 Mar-28 85%
99 NTPC Sipat-III Central Coal 800 Mar-29 85%
100 DVC Raghunathpur Central Coal 300 Mar-29 85%
101 DVC Koderma Central Coal 75 Mar-29 85%
102 DVC Durgapur Central Coal 50 Mar-29 85%
Ashvini-JV of NTPC and
103 Central Nuclear 200 Mar-30 85%
NPCIL
TOTAL 22,733

(III) Decapitalisation of Existing Plants

During the MYT control period from FY 2025-26 to FY 2029-30, several wind and thermal power
plants have been identified for decapitalization due to factors such as the completion of their useful
life. Details of capacities getting decapitalised are given below. With the decapitalization the total
generation capacity will be reduced, directly affecting the availability of firm power from these
decommissioned assets. Accordingly, GUVNL/DISCOMs have adjusted their power purchase in
increased procurement of renewable projects that are being commissioned during the MYT control
period.

Table 5-28: Decapitalisation schedule of existing plants

Rated Capacity
S.
Name of the Station allocated to GUVNL Fuel Type Month/Year
No.
(MW)
1 PRADEEP GUPTA 1.65 Wind 25-08-2024
2 FAIRDEAL SUPPLIES LIMITED 0.75 Wind 05-07-2025
3 H D ENTERPRISE 0.75 Wind 29-09-2026
MAKSON PHARMACEUTICAL (I) PRIVATE
4 LIMITED
1.25 Wind 06-10-2026

5 ZAVERI & CO PRIVATE LIMITED 1.25 Wind 09-02-2026

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Rated Capacity
S.
Name of the Station allocated to GUVNL Fuel Type Month/Year
No.
(MW)
RADHE RENEWABLE ENERGY
6 DEVELOPMENT PRIVATE LIMITED
0.35 Wind 13-11-2026

7 PBM POLYTEX LIMITED 0.6 Wind 08-02-2027

8 PBM POLYTEX LIMITED 0.8 Wind 11-02-2027
9 TARAK CHEMICALS LIMITED 0.8 Wind 18-03-2027
10 HINDUSTAN ZINC LIMITED 38.4 Wind 12-03-2027
11 AMAR BUILDERS 0.8 Wind 23-03-2027
12 D.P.WIRES LTD 0.8 Wind 18-03-2027
13 GHODAWAT REALTY PRIVATE LIMITED 4 Wind 25-03-2027
14 GHODAWAT REALTY PRIVATE LIMITED 1.6 Wind 29-03-2027
15 GHODAWAT ENERGY PRIVATE LIMITED 1.6 Wind 05-08-2027
16 RATLAM WIRES PRIVATE LIMITED 0.8 Wind 11-02-2027
17 STAR FLEXI PACK INDUSTRIES 0.8 Wind 29-03-2027
18 SANJAY D GHODAWAT 1.6 Wind 18-03-2027
19 KATARIA WIRES PRIVATE LIMITED 0.8 Wind 31-01-2027
ASHIT SHIPPING SERVICES PRIVATE
20 LIMITED
0.6 Wind 28-02-2027

21 BANSPANI IRON LIMITED 4.8 Wind 23-03-2027

22 MAHANAGAR DEVELOPERS 1.6 Wind 18-03-2027
23 PATNAIK MINERALS PRIVATE LIMITED 15.2 Wind 20-03-2027
24 ZAVERI & CO PRIVATE LIMITED 0.8 Wind 31-01-2027
25 D.P.WIRES LTD 0.8 Wind 31-01-2027
26 D P POWER 0.8 Wind 11-02-2027
ROHAN BUILDERS (INDIA) PRIVATE
27 LIMITED
2.4 Wind 27-03-2027

28 INDIA POWER CORPORATION LIMITED 24.8 Wind 12-03-2027

29 USHDEV INTERNATIONAL LIMITED 1.6 Wind 29-03-2027
30 MODERN IMPEX 0.6 Wind 27-03-2027
31 MIRAJ PRODUCTS PRIVATE LIMITED 1.5 Wind 21-03-2027
32 FLSMIDTH PRIVATE LIMITED 1.5 Wind 30-03-2027
33 MATRIX CLOTHING (P) LIMITED 1.2 Wind 27-03-2027
34 GAUTAM FREIGHT PRIVATE LIMITED 1.5 Wind 21-03-2027
35 NIDHI MINING PRIVATE LIMITED 7.5 Wind 20-03-2027

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Rated Capacity
S.
Name of the Station allocated to GUVNL Fuel Type Month/Year
No.
(MW)
FRIENDS SALT WORKS & ALLIED
36 INDUSTRIES
3 Wind 20-03-2027

37 J P JEWELLERS 0.6 Wind 02-05-2027

38 RUGBY RENERGY PRIVATE LIMITED 4.5 Wind 20-03-2027
39 V3S INFRATECH LIMITED 1.5 Wind 20-03-2027
40 GSS PIZZA CIRCLE PRIVATE LIMITED 3 Wind 25-03-2027
41 AVICHAL EMBROIDERY PRIVATE LIMITED 0.6 Wind 27-03-2027
42 SIDDHIVINAYAK VASTU NIRMITI LIMITED 7.5 Wind 29-03-2027
43 KING METAL WORKS 0.6 Wind 29-03-2027
44 RISHIKIRAN LOGISTICS PRIVATE LIMITED 1.25 Wind 25-03-2027
45 NEHA SHARMA 0.6 Wind 29-03-2027
46 ATUL SHARMA 0.6 Wind 30-03-2027
47 WEST INN LIMITED 0.6 Wind 27-03-2027
48 CAUVERY AQUA PRIVATE LIMITED 0.6 Wind 25-05-2027
49 BRINDAVAN THREADS PRIVATE LIMITED 0.6 Wind 25-05-2027
SOUTH INDIA BEVERAGES PRIVATE
50 LIMITED
0.6 Wind 25-05-2027

51 RASHI WEARS PRIVATE LIMITED 0.6 Wind 21-03-2027

52 ADITYA MARINE LIMITED 0.75 Wind 14-03-2027
53 ENGINEERS COMBINES-INDIA 0.6 Wind 25-05-2027
54 RUGBY RENERGY PRIVATE LIMITED 9 Wind 25-05-2027
SWAMINARAYAN VIJAY CARRY TRADE
55 PRIVATE LIMITED
0.6 Wind 28-02-2027

56 PEETHAMBRA GRANITES PRIVATE LIMITED 1.2 Wind 25-03-2027

57 K L RATHI STEELS LIMITED 1.5 Wind 21-03-2027
58 K S OILS LIMITED 6.00 Wind 27-03-2027
59 INTERNATIONAL CONVEYORS LIMITED 1.65 Wind 26-03-2027
60 MSPL GASES LIMITED 2.4 Wind 08-06-2027
61 L R INDUSTRIES 0.6 Wind 08-06-2027
62 MAHALAKSHMI GASES 0.6 Wind 08-06-2027
63 R S ENTERPRISES 0.6 Wind 08-06-2027
64 MAHAKALI GASES 0.6 Wind 08-06-2027
65 P VENGANNA SETTY & BROS 4.2 Wind 08-06-2027
66 MSPL LIMITED 16.2 Wind 27-05-2027

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Rated Capacity
S.
Name of the Station allocated to GUVNL Fuel Type Month/Year
No.
(MW)
VIJAYANAGAR INDUSTRIAL CREDITS
67 LIMITED
0.6 Wind 08-06-2027

68 RAMGAD MINERALS & MINING LIMITED 4.2 Wind 25-05-2027

69 ZAVERI & CO PRIVATE LIMITED 0.6 Wind 24-05-2027
70 ZAVERI & CO PRIVATE LIMITED 0.6 Wind 20-03-2027
71 RATNAMANI METALS & TUBES LIMITED 10.5 Wind 20-03-2027
72 GHODAWAT ENERGY PRIVATE LIMITED 0.8 Wind 10-06-2027
73 RAJMAL LAKHICHAND & SONS 0.6 Wind 29-03-2027
74 RAJMAL LAKHICHAND 0.6 Wind 27-03-2027
75 NAGNATH GANGADHARRAO PALDEWAR 0.6 Wind 20-03-2027
76 UNIQUE SUGARS LIMITED 1.5 Wind 01-04-2027
JAYCHANDRA AGRO INDUSTRIES PRIVATE
77 LIMITED
0.6 Wind 01-05-2027

78 TOSHVIN ANALYTICAL PRIVATE LIMITED 0.6 Wind 25-03-2027

79 GLOBAL COAL & MINING PRIVATE LIMITED 1.5 Wind 01-04-2027
SANGHI BROTHERS (INDORE) PRIVATE
80 LIMITED
0.6 Wind 20-03-2027

81 M R DIAGLOBE 0.6 Wind 25-03-2027

82 SREI EQUIPMENT FINANCE LIMITED 5 Wind 25-03-2027
RAJMAL LAKHICHAND JEWELLERS
83 PRIVATE LIMITED
0.6 Wind 25-03-2027

84 P R INDUSTRIES PRIVATE LIMITED 1.5 Wind 11-04-2027

85 USHDEV INTERNATIONAL LIMITED 3.2 Wind 09-07-2027
K GIRDHARLAL INTERNATIONAL PRIVATE
86 LIMITED
1.6 Wind 19-07-2027

87 GHODAWAT ENERGY PRIVATE LIMITED 1.6 Wind 05-08-2027

88 McNALLY SAYAJI ENGINEERING LIMITED 0.8 Wind 10-08-2027
89 PATNAIK MINERALS PRIVATE LIMITED 15.2 Wind 10-06-2027
90 PBM POLYTEX LIMITED 1.6 Wind 31-08-2027
91 SHILPA LIFE STYLE 0.6 Wind 29-06-2027
92 RADHIKA JEWELLERS 0.6 Wind 29-06-2027
93 REPOWERING INDIA (OPC) PVT. LTD. 0.6 Wind 27-07-2027
94 HINDUSTAN ZINC LIMITED 37.6 Wind 31-08-2027
95 SIVA GREEN ENERGY INDIA PVT LTD 4.5 Wind 29-06-2027
96 RATHI TRANSPOWER PRIVATE LIMITED 0.6 Wind 01-08-2027

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Rated Capacity
S.
Name of the Station allocated to GUVNL Fuel Type Month/Year
No.
(MW)
97 EASTMAN INTERNATIONAL 3 Wind 27-09-2027
98 NVR POWER PRIVATE LIMITED 1.5 Wind 30-03-2027
99 RUGBY RENERGY PRIVATE LIMITED 12 Wind 25-09-2027
JAIPUR GOLDEN TRANSPORT CO PRIVATE
100 LIMITED
0.6 Wind 02-10-2027

101 WMI POWER PRIVATE LIMITED 1.8 Wind 27-12-2027

102 GANGADHAR NARSINGDAS AGRAWAL 3 Wind 01-10-2027
STANDARD GREASES & SPECILITIES
103 PRIVATE LIMITED
1.5 Wind 28-09-2027

104 SUASHISH DIAMONDS LIMITED 1.5 Wind 28-09-2027

CONTINUUM GREEN ENERGY (INDIA)
105 PRIVATE LIMITED
8.25 Wind 26-07-2027

106 GOVINDRAM SHOBHARAM & CO 1.5 Wind 25-09-2027

107 ZAVERI & CO EXPORTS 0.6 Wind 27-09-2027
108 AMENITY DEVELOPERS & BUILDERS 1.2 Wind 29-09-2027
109 RAJMAL LAKHICHAND 1.5 Wind 20-09-2027
RAJMAL LAKHICHAND JEWELLERS
110 PRIVATE LIMITED
3 Wind 20-09-2027

111 BORAX MORARJI LIMITED 0.6 Wind 28-09-2027

112 NUTAN ECO POWER 3 Wind 29-09-2027
113 JANAK HOLDINGS PRIVATE LIMITED 1.5 Wind 23-09-2027
CONTINUUM GREEN ENERGY (INDIA)
114 PRIVATE LIMITED
8.25 Wind 07-12-2027

115 BHANDARI FOILS & TUBES LIMITED 0.6 Wind 28-09-2027

116 VAYU (PROJECT 1) PRIVATE LIMITED 22.5 Wind 29-09-2027
117 VAYU (PROJECT 1) PRIVATE LIMITED 25.5 Wind 25-12-2027
118 USHDEV ENGITECH LIMITED 3 Wind 29-09-2027
119 RAMESHKUMAR HANJARIMAL RATHOD 0.6 Wind 29-09-2027
120 BHARAT PETRO 0.6 Wind 30-12-2027
BRINDAVAN BEVERAGES PRIVATE
121 LIMITED
6.60 Wind 25-05-2027

122 AVON CYCLES LIMITED 3.00 Wind 20-09-2027

123 GHODAWAT REALTY PRIVATE LIMITED 2.4 Wind 04-01-2028
124 VAYU (PROJECT 1) PRIVATE LIMITED 61.5 Wind 12-02-2028
125 PRECISION INFRATECH LIMITED 0.6 Wind 16-01-2028
126 MANGALYA CERAMICS 0.6 Wind 28-03-2028

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Rated Capacity
S.
Name of the Station allocated to GUVNL Fuel Type Month/Year
No.
(MW)
GUJARAT STATE ELECTRICITY
127 CORPORATION LTD
10 Wind 26-03-2028

128 UNIQUE FORWARDERS 0.6 Wind 28-03-2028

129 MARVEL FRAGRANCES PRIVATE LIMITED 0.6 Wind 25-02-2028
130 PMR ENERGY 0.6 Wind 28-03-2028
131 M M WIND PARK 0.6 Wind 28-03-2028
132 MALU WIND PARK 0.6 Wind 28-03-2028
133 CINELINE INDIA LIMITED 0.6 Wind 28-03-2028
PARAM CAPITAL RESEARCH PRIVATE
134 LIMITED
1.5 Wind 25-03-2028

135 V M WIND PARK 0.6 Wind 28-03-2028

136 KUBER SECURITIES 1.25 Wind 14-03-2028
137 VIJAYA WINDPARK 0.6 Wind 28-03-2028
138 KAMNA INDUSTRIES PRIVATE LIMITED 1.5 Wind 27-03-2028
139 POWERICA LIMITED 4.8 Wind 30-03-2028
140 RSPL LIMITED 9.6 Wind 17-03-2028
141 VIJAY SHANTILAL LODHA 0.6 Wind 28-03-2028
142 SAVITA S KADAM 0.6 Wind 28-03-2028
143 AGARWAL ENTERPRISES 1.2 Wind 28-03-2028
144 HOTEL GOLDEN EMERALD 1.2 Wind 28-03-2028
145 GSS PIZZA CIRCLE PRIVATE LIMITED 4.5 Wind 29-03-2028
146 VIVEK PHARMACHEM (INDIA) LIMITED 4.5 Wind 16-03-2028
147 EVERSHINE EXPORTS 2.4 Wind 28-03-2028
148 BASANT AGRO TECH ( INDIA) LIMITED 0.6 Wind 27-03-2028
149 GANGADHAR NARSINGDAS AGRAWAL 6 Wind 29-03-2028
150 AIR CONTROL [INDIA] PRIVATE LIMITED 0.6 Wind 28-03-2028
151 VIJAY SHANTILAL LODHA 0.6 Wind 09-01-2028
152 SUMAN GARHWAL 1.2 Wind 30-03-2028
RAI BAHADUR SETH SHREERAM
153 3.2 Wind 30-03-2028
NARSINGDAS PRIVATE LIMITED
154 RAJLAKSHMI MINERALS 1.6 Wind 30-03-2028
155 VINTAGE POWER GENERATION LLP 8.75 Wind 19-03-2028
156 ISPAT UDYOG 0.6 Wind 29-03-2028

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Rated Capacity
S.
Name of the Station allocated to GUVNL Fuel Type Month/Year
No.
(MW)
DDB MARKETING SERVICES PRIVATE
157 LIMITED
0.45 Wind 30-03-2028
MUDRA ONLINE TECHNOLOGIES PRIVATE
158 LIMITED
0.45 Wind 30-03-2028

159 EASTMAN IMPEX 1.5 Wind 16-01-2028

160 KUBER SECURITIES 1.8 Wind 25-02-2028
161 CHAPHALKAR BROTHERS PUNE 1.5 Wind 16-01-2028
ARJAV DIAMONDS (INDIA) PRIVATE
162 LIMITED
1.5 Wind 27-03-2028

163 ENERGY INFRATECH PRIVATE LIMITED 10.5 Wind 18-03-2028

164 VAYU (PROJECT 1) PRIVATE LIMITED 40.5 Wind 14-03-2028
165 HINDUSTAN ZINC LIMITED 12.8 Wind 15-02-2028
VENKATALAXMI RENEWABLE ENERGY
166 PRIVATE LIMITED
0.6 Wind 29-07-2028

167 SUZLON GUJARAT WIND PARK LIMITED 0.6 Wind 04-08-2028

VEER ENERGY & INFRASTRUCTURE
168 LIMITED
0.45 Wind 29-09-2028

169 SOUTHERN WIND FARM LIMITED 1.8 Wind 26-08-2028

INDIAN RENEWABLE ENERGY
170 FOUNDATION
16.875 Wind 26-03-2028

171 THE TATA POWER COMPANY LIMITED 29.6 Wind 28-09-2028

172 CHOUDHARY STONE CRUSHING COMPANY 0.8 Wind 30-03-2029
173 D J MALPANI 1.6 Wind 28-03-2029
KALTHIA ENGINEERING & CONSTRUCTION
174 LIMITED
1.5 Wind 30-03-2029

175 TRADEX CORPORATION 1.5 Wind 27-03-2029

176 GAUTAM FREIGHT PRIVATE LIMITED 1.5 Wind 26-03-2029
177 UNIQUE FORWARDERS 0.6 Wind 07-05-2029
178 VIVEK AGRO PRODUCTS 0.225 Wind 26-03-2029
GUJARAT STATE PETROLEUM
179 CORPORATION LIMITED
52.5 Wind 17-07-2029
GUJARAT MINERAL DEVELOPMENT
180 CORPORATION LIMITED
19.5 Wind 30-09-2029

181 APRAAVA RENEWABLE ENERGY PVT LTD 4 Wind 15-05-2029

182 SUPER INDUSTRIES 2.1 Wind 30-09-2029
183 D J MALPANI 1.6 Wind 12-08-2029
184 SARGAM RETAILS PRIVATE LIMITED 9.6 Wind 14-09-2029
185 MAXWELL INC 2.1 Wind 24-09-2029

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Rated Capacity
S.
Name of the Station allocated to GUVNL Fuel Type Month/Year
No.
(MW)
186 THE TATA POWER COMPANY LIMITED 20 Wind 05-05-2029
VEER ENERGY & INFRASTRUCTURE
187 LIMITED
0.9 Wind 06-07-2029

188 THE TATA POWER COMPANY LIMITED 0.8 Wind 06-05-2029

ASHIT SHIPPING SERVICES PRIVATE
189 LIMITED
1.25 Wind 15-01-2030

190 MADHAV SOLAR PRIVATE LIMITED 2.5 Wind 01-01-2030

191 NTPC-Mauda 212 Coal 01-03-2026
192 NTPC-Mauda II 212 Coal 01-03-2026
193 NTPC-Korba 25 Coal 01-03-2026
194 NTPC-Kahlagaon I 13 Coal 01-03-2026
195 NTPC KhTPS-2 5 Coal 01-03-2026
196 NTPC FSTS- I&II 26 Coal 01-03-2026
197 NTPC FSTS-III 25 Coal 01-03-2026
198 NTPC TSTPS-I 24 Coal 01-03-2026
199 NTPC Darlipali-I 14 Coal 01-03-2026
200 NTPC Unchar-I 36 Coal 01-03-2026
201 NTPC Tanda-II 44 Coal 01-03-2026
202 NTPC KhTPS-1 128 Coal 01-09-2026
203 NTPC FSTS- I&II 218 Coal 01-09-2026
204 NTPC Barh-1 139.33 Coal 01-03-2027
205 NTPC FSTS- I&II 11 Coal 01-03-2027
206 NTPC FSTS-III 32.5 Coal 01-03-2027
207 NTPC Unchar-I 27 Coal 01-03-2027
208 NTPC NPGCL 46.66 Coal 01-03-2027
209 NTPC Dadri-I 577 Coal 01-03-2027

(IV) Renewable Purchase Obligation (RPO)

In accordance with the Energy Conservation Act, 2001 (52 of 2001), and the notification dated 20th
October, 2023, issued by the Central Government in consultation with the Bureau of Energy

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Efficiency, DISCOMs are obligated to procure electricity from renewable energy sources as a
minimum percentage of the total consumption of their consumers.

Table 5-29: Renewable Purchase Obligation (RPO) as notified by Ministry of Power under S.O.
4617(E)

Wind Hydro Distributed Other Total

Year Renewable Renewable Renewable Renewable Renewable
Energy (%) Energy (%) Energy (%) Energy (%) Energy (%)

FY 2025-26 1.45% 1.22% 2.10% 28.24% 33.01%

FY 2026-27 1.97% 1.34% 2.70% 29.94% 35.95%
FY 2027-28 2.45% 1.42% 3.30% 31.64% 38.81%
FY 2028-29 2.95% 1.42% 3.90% 33.10% 41.36%
FY 2029-30 3.48% 1.33% 4.50% 34.02% 43.33%

In accordance with the RPO targets for FY 2025-26 to FY 2029-30 as notified by Ministry of Power,
GUVNL/DISCOMs propose to purchase renewable power up to the tied-up RE capacity for each of
the respective years as per the Power Purchase Agreement (PPA) prices. Accordingly,
GUVNL/DISCOM has considered the purchase from renewable energy sources based on the actual
tied-up capacity only. The details of purchases from renewable energy sources for the MYT control
period have been prepared accordingly.

Table 5-30: Additional RE Capacity envisaged for MYT Control Period

Particular Solar Wind Others HPO Total
Additional Power Purchase (MW) 14,056 2,322 92 803 17,272
Additional Power Purchase (MUs) 34,351 7,035 535 1,169 43,090
Power Purchase Cost (Rs./kWh) 2.61 3.10 4.73 5.00 2.78
Power Purchase Cost (Rs. Crore) 8,953 2,183 253 585 11,974

Based on the purchase from various RE sources by the end of MYT control period of FY 2025-26 to
FY 2029-30, status of meeting Renewable Purchase Obligation is as under:

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Table 5-31: Procurement from RE for meeting projected RPO

Purchase
RE Purchase DISCOM
from
Total Purchase from New Local
Particulars Category RPO Target Existing
Requirement Target Capacity Purchase
Capacity
(MU) (MU) (MU)
(MU)
FY 2025-26 Others 1,34,594 8.41% 38,009 11,313 19,330 1,781
Wind 1,34,594 6.02% 1,952 8,102 2,725 181
Storage 1,34,594 2.48% 2,692 3,340 484
HPO 1,34,594 0.00% 1,642 0 1,096
Total 1,34,594 16.91% 44,295 22,755 23,635 1,961
FY 2026-27 Others 1,39,066 8.19% 41,636 11,392 28,792 1,781
Wind 1,39,066 5.76% 2,740 8,007 5,552 181
Storage 1,39,066 5.08% 3,477 7,063 1,409
HPO 1,39,066 0.00% 1,863 0 2,180
Total 1,39,066 19.03% 49,716 26,461 37,933 1,961
FY 2027-28 Others 1,45,494 7.83% 46,034 11,392 32,022 1,781
Wind 1,45,494 4.92% 3,565 7,159 7,035 181
Storage 1,45,494 4.85% 4,365 7,063 1,470
HPO 1,45,494 0.00% 2,066 0 2,615
Total 1,45,494 17.60% 56,030 25,614 43,142 1,961
FY 2028-29 Others 1,52,337 7.55% 50,423 11,496 34,978 1,781
Wind 1,52,337 4.70% 4,494 7,152 7,054 181
Storage 1,52,337 4.68% 5,332 7,126 1,474
HPO 1,52,337 0.00% 2,163 0 3,078
Total 1,52,337 16.92% 62,412 25,775 46,585 1,961
FY 2029-30 Others 1,59,548 7.14% 54,278 11,392 34,886 1,781
Wind 1,59,548 4.31% 5,552 6,870 7,035 181
Storage 1,59,548 4.43% 6,382 7,063 1,470
HPO 1,59,548 0.00% 2,122 0 3,070
Total 1,59,548 15.87% 68,334 25,325 46,461 1,961

5.9.3 Methodology for Forecasting Power Purchase Cost of GUVNL

PGVCL submitted that in order to optimise the power purchase cost, comprehensive Merit Order
Dispatch (MOD) has been worked out to determine the dispatch required from tied up generating

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capacities. The dispatch from individual generating stations is worked out based on the merit order
of the variable cost of each generating unit as follows:

• The NPC power plants, renewable and hydro plants have been considered as must run power
plants.
• During merit order despatch, at least 7% availability of each plant has been considered to take
care of the peak loads and peak season requirements.
• Availability of Thermal Stations has been considered at 85% / 80% as defined in Regulations
(CERC/GERC) and performance in previous years.
• The Fixed Cost (FC) and Variable Cost (VC) for existing GSECL, IPP, renewable and central
sector plants have been taken as per actuals of FY 2022-23 for arriving at base power purchase
cost.
• For Private IPPs, FC and VC is considered based on likely cost as per PPAs.

5.9.4 Power Purchase and Cost of GUVNL

The plant-wise dispatchable energy and costs of purchase by GUVNL from various plants of GSECL,
Central Generating Stations, IPPs and other sources consists of fixed and variable cost. The
dispatched MUs based on merit order stacking consists of power for supplying to the Discoms as
well as for the purpose of trading.

Table 5-32: Projected Power Purchase Cost for FY 2025-26

Variable Variable
S Available Dispatch Fixed Cost Total Cost
Name of the Station Cost Cost
No. (MU) (MU) (Rs. Cr.) (Rs. Cr.)
(Rs./kwh) (Rs.Cr.)
GSECL
1 GSECL Gandhinagar - 5 1,066 117 145 4.43 52 197
2 GSECL Wanakbori - 7 1,190 117 78 4.53 53 131
3 GSECL Utran Expan 183 183 210 9.80 180 389
4 GSECL Dhuvaran - 7 29 29 3 10.63 31 34
5 GSECL Dhuvaran - 8 26 26 93 10.47 27 121
6 GSECL Ukai 2,465 340 278 4.40 150 427
7 GSECL Ukai Expan 2,332 2,332 243 3.85 899 1,142
8 GSECL Gandhinagar 3-4 1,899 233 169 4.58 107 276

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Variable Variable
S Available Dispatch Fixed Cost Total Cost
Name of the Station Cost Cost
No. (MU) (MU) (Rs. Cr.) (Rs. Cr.)
(Rs./kwh) (Rs.Cr.)

9 GSECL Wanakbori 1-6 4,981 703 401 4.60 323 724

10 GSECL Sikka Expansion 1,000 279 619 6.67 186 805
11 GSECL Kutch Lignite 329 40 132 4.40 18 150
GSECL Kutch Lignite Exp
12 117 40 14 11.96 48 63
unit 4
13 GSECL Ukai Hydro 731 731 34 - - 34
14 GSECL Kadana Hydro 274 274 66 - - 66
15 GSECL Dhuvaran CCPP III 128 128 225 9.70 124 350
16 GSECL BLTPS 1,324 1,324 212 3.78 501 713
17 GSECL Wanakbori - 8 4,318 4,318 803 3.80 1,641 2,444
18 GSECL Ukai 7 - - - - -
-
19 GSECL Gandhinagar - - - - -
-
20 GSECL Sikka - - - - -
-
21 GSECL Ukai - - - - -
-
Sub Total 22,392 11,215 3,726 4,339 8,064

IPP's
Gujarat State Energy
1 363 93 5 8.69 81 85
Generation
Gujarat State Energy
2 808 209 138 8.69 181 319
Generation Expansion
Gujarat Industries Power Co
3 - - - - -
Ltd (165 MW) -
Gujarat Industries Power Co
4 1,222 1,222 138 2.69 328 466
Ltd (SLPP)
Gujarat Mineral Development
5 484 484 26 3.78 183 209
Corp.
Gujarat Industries Power Co
6 18 17 1 8.91 15 16
Ltd (145 MW)
Gujarat Industries Power Co
7 - 217 2.73 - 217
Ltd (SLPP - Exp) -
8 GPPC Pipavav 815 418 239 9.91 414 652
- - - - -
-
1 Adani Power Ltd Bid 1 8,935 736 660 4.37 322 982
2 Adani Power Ltd Bid 2 9,188 6,267 725 4.11 2,574 3,299
3 Essar Power Gujarat Ltd 8,354 688 667 4.71 324 991
4 ACB India Ltd 1,489 1,489 195 0.66 98 293

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Variable Variable
S Available Dispatch Fixed Cost Total Cost
Name of the Station Cost Cost
No. (MU) (MU) (Rs. Cr.) (Rs. Cr.)
(Rs./kwh) (Rs.Cr.)

5 Coastal Gujarat Power Co Ltd 13,440 13,440 1,150 4.02 5,403 6,553
6 DB Power 2,175 2,175 597 1.67 363 960
7 MTOA - - 1.79 - -
-
8 Pump Storage 101 101 - 5.35 54 54
8 Battery Storage 3,239 383 138 4.75 182 321
9 Power Exchange 9,852 - 6.02 5,934 5,934
-
10 Short term power purchase 2,483 - 6.63 1,646 1,646
-
Sub Total 50,632 40, 249 4,896 18,102 23,077

Central Sector
1 NPC-Tarapur 1 & 2 - - 3.42 - -
-
2 NPC-Tarapur 3 & 4 1,857 1,857 - 3.42 635 635
3 NPC-Kakrapar 4,116 4,116 - 4.08 1,680 1,680
4 NTPC-Vindhyachal - I 1,698 1,698 170 1.68 285 455
5 NTPC-Vindhyachal - II 1,852 1,852 156 1.61 298 454
6 NTPC-Vindhyachal - III 2,188 2,188 250 1.60 351 601
7 NTPC-Korba 2,773 2,773 167 1.60 445 612
8 NTPC-Korba -II 1,036 1,036 122 1.57 163 285
9 NTPC-Kawas 17 17 124 11.45 19 143
10 NTPC-Jhanor 24 24 207 11.61 28 236
11 NTPC-Sipat-I 3,929 3,929 601 1.55 608 1,209
12 NTPC-Sipat - II 2,138 2,138 264 1.61 344 607
13 NTPC-Kahlagaon 1,087 81 110 2.87 23 133
13 NTPC-Kahlagaon I 954 954 110 2.87 274 383
14 NTPC-Vindhyachal - IV 1,847 1,847 407 1.53 283 690
15 NTPC-Mauda 1,775 1,775 309 3.50 621 930
16 NTPC-Mauda-de 1,528 1,528 269 3.50 534 803
16 NTPC-Vindhyachal - V 722 722 176 1.63 118 294
17 NTPC-Mauda II 2,009 2,009 379 3.56 715 1,094
18 NTPC-Mauda II-de 1,338 1,338 252 3.56 476 729
18 NTPC-Solapur 124 14 127 4.82 134
7
19 NTPC-Gadarwara 2,156 2,156 536 3.75 809 1,345
20 NTPC-LARA 1,295 1,295 274 3.82 495 769

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Variable Variable
S Available Dispatch Fixed Cost Total Cost
Name of the Station Cost Cost
No. (MU) (MU) (Rs. Cr.) (Rs. Cr.)
(Rs./kwh) (Rs.Cr.)

21 NTPC-Khargone 1,619 1,619 495 4.06 657 1,152

22 NTPC-Farakka - 3 210 210 66 3.28 69 135
23 NTPC-Farakka - 1 & 2 1,812 1,812 196 3.43 622 818
24 NTPC-Talcher 162 162 14 1.81 29 43
25 NTPC-Darlipalli 99 99 41 1.16 11 52
26 NTPC-Unchahar - 1 106 15 36 4.69 43
7
27 NTPC-Tanda - 2 319 319 91 3.64 116 207
28 NTPC-Barah - 1 865 865 198 3.20 277 474
29 NTPC-Dadri - 1 2,753 324 316 4.82 156 472
Sardar Sarovar Narmada
30 353 353 - 2.05 72 72
Nigam Ltd
Nabinagar Power Generating
31 353 353 231 2.65 94 325
Co Ltd
32 CSGS (MoP Allocation) - - - - -
-
33 NHPC Subansiri 590 590 162 2.75 162 325
34 NHPC Rangit-IV 118 118 24 2.19 26 50
35 NHPC Pakaldul 329 329 98 2.14 70 169
36 NHPC Kiru 49 49 - 2.37 12 12
37 NTPC Talcher III - - 1.48 - -
-
38 NHPC Teesta IV - - 4.59 - -
-
39 NHPC Ratle - - 1.96 - -
-
40 NHPC Kwar - - 2.22 - -
-
41 DVC Raghunathpur - - 2.13 - -
-
42 DVC Koderma - - 1.77 - -
-
43 NTPC Sipat-III - - 1.40 - -
-
44 DVC Durgapur - - 1.90 - -
-
45 DVC Durgapur - - 1.90 - -
-
46 DVC Durgapur - - 1.90 - -
-
Ashvini-JV of NTPC and
47 - - 6.50 - -
NPCIL -
Sub Total 46,201 42,565 6,980 11,592 18,571

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Variable Variable
S Available Dispatch Fixed Cost Total Cost
Name of the Station Cost Cost
No. (MU) (MU) (Rs. Cr.) (Rs. Cr.)
(Rs./kwh) (Rs.Cr.)

Others
1 Captive Power 1 - 6.61 0
1 0
Renewable
1 Wind Farms 8,102 8,102 - 3.52 2,852 2,852
2 Solar 10,630 10,630 - 3.92 4,171 4,171
3 Wind (New) 2,725 2,610 - 2.93 765 765
4 Solar (New) 18,967 18,698 - 2.57 4,797 4,797
5 Hybrid - - 2.93 - -
-
6 Small/Mini Hydal 88 88 - 3.69 32 32
7 Biomass 184 184 - 1.98 36 36
8 Bagasse 141 76 - 1.98 15 15
9 Waste to Energy 270 369 - 3.67 135 135
10 HPO - - - - -
-
11 Solar (Exchange) - - - - -
-
12 Wind (Exchange) - - - - -
-
13 Others (Exchange) - - - - -
-
14 HPO (Exchange) - - - - -
-
Sub Total 41,107 40,758 - 12,805 12,805
TOTAL 1,60,333 1,34,786 15,601 - 46,837 62,439

Table 5-33: Projected Power Purchase Cost for FY 2026-27

Fixed Variable Variable Total

S Available Dispatch
Name of the Station Cost Cost Cost Cost
No. (MU) (MU)
(Rs. Cr.) (Rs./kwh) (Rs.Cr.) (Rs. Cr.)

GSECL
1 GSECL Gandhinagar - 5 1,066 117 150 4.65 54 204
2 GSECL Wanakbori - 7 1,190 117 81 4.53 53 134
3 GSECL Utran Expan 183 183 216 9.80 180 396

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Fixed Variable Variable Total

S Available Dispatch
Name of the Station Cost Cost Cost Cost
No. (MU) (MU)
(Rs. Cr.) (Rs./kwh) (Rs.Cr.) (Rs. Cr.)

4 GSECL Dhuvaran - 7 29 29 3 10.63 31 34

5 GSECL Dhuvaran - 8 26 26 96 10.47 27 123
6 GSECL Ukai 2,465 340 286 4.40 150 436
7 GSECL Ukai Expan 2,332 2,332 250 3.85 899 1,149
8 GSECL Gandhinagar 3-4 1,899 233 174 4.58 107 281
9 GSECL Wanakbori 1-6 4,981 703 413 4.60 323 736
10 GSECL Sikka Expansion 1,000 279 637 6.67 186 823
11 GSECL Kutch Lignite 329 40 136 4.40 18 154
12 GSECL Kutch Lignite Exp unit 4 117 40 15 11.96 48 63
13 GSECL Ukai Hydro 731 731 35 - - 35
14 GSECL Kadana Hydro 274 274 68 - - 68
15 GSECL Dhuvaran CCPP III 128 128 232 9.70 124 356
16 GSECL BLTPS 1,324 1,324 218 3.78 501 719
17 GSECL Wanakbori - 8 4,318 4,318 827 3.80 1,641 2,468
18 GSECL Ukai 7 - - - - - -
19 GSECL Gandhinagar - - - - - -
20 GSECL Sikka - - - - - -
21 GSECL Ukai - - - - - -
Sub Total 22,392 11,215 3,838 4,341 8,179

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Fixed Variable Variable Total

S Available Dispatch
Name of the Station Cost Cost Cost Cost
No. (MU) (MU)
(Rs. Cr.) (Rs./kwh) (Rs.Cr.) (Rs. Cr.)

1 Adani Power Ltd Bid 1 8,935 736 660 4.37 322 982
2 Adani Power Ltd Bid 2 9,188 757 725 4.11 311 1,035
3 Essar Power Gujarat Ltd 8,354 688 667 4.71 324 991
4 ACB India Ltd 1,489 1,489 195 0.66 98 293
5 Coastal Gujarat Power Co Ltd 13,440 12,842 1,150 4.02 5,163 6,313
6 DB Power 2,175 2,175 597 1.67 363 960
7 MTOA - - - 1.79 - -
8 Pump Storage 101 101 - 5.35 54 54
8 Battery Storage 6,962 1,309 456 4.75 621 1,077
9 Power Exchange - 9,852 - 6.02 5,934 5,934
10 Short term power purchase - 2,483 - 6.63 1,646 1,646
Sub Total 54,355 35,066 5,213 16,115 21,251

Central Sector
1 NPC-Tarapur 1 & 2 1,084 1,084 - 3.42 371 371
2 NPC-Tarapur 3 & 4 1,857 1,857 - 3.42 635 635
3 NPC-Kakrapar 4,116 4,116 - 4.08 1,680 1,680
4 NTPC-Vindhyachal - I 1,698 1,698 170 1.68 285 455
5 NTPC-Vindhyachal - II 1,852 1,852 156 1.61 298 454
6 NTPC-Vindhyachal - III 2,188 2,188 250 1.60 351 601
7 NTPC-Korba 2,773 2,773 167 1.60 445 612
8 NTPC-Korba -II 1,036 1,036 122 1.57 163 285
9 NTPC-Kawas 17 17 124 11.45 19 143
10 NTPC-Jhanor 24 24 207 11.61 28 236
11 NTPC-Sipat-I 3,929 3,929 601 1.55 608 1,209
12 NTPC-Sipat - II 2,138 2,138 264 1.61 344 607
13 NTPC-Kahlagaon 1,087 81 110 2.87 23 133
13 NTPC-Kahlagaon I 0 0 110 2.87 0 110
14 NTPC-Vindhyachal - IV 1,847 1,847 407 1.53 283 690
15 NTPC-Mauda 1,775 1,775 309 3.50 621 930
16 NTPC-Mauda-de - - - 3.50 - -
16 NTPC-Vindhyachal - V 722 722 176 1.63 118 294
17 NTPC-Mauda II 2,009 2,009 379 3.56 715 1,094

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Fixed Variable Variable Total

S Available Dispatch
Name of the Station Cost Cost Cost Cost
No. (MU) (MU)
(Rs. Cr.) (Rs./kwh) (Rs.Cr.) (Rs. Cr.)

18 NTPC-Mauda II-de - - - 3.56 - -

18 NTPC-Solapur 124 14 127 4.82 7 134
19 NTPC-Gadarwara 2,156 2,156 536 3.75 809 1,345
20 NTPC-LARA 1,295 1,295 274 3.82 495 769
21 NTPC-Khargone 1,619 155 495 4.06 63 558
22 NTPC-Farakka - 3 14 14 66 3.28 4 71
23 NTPC-Farakka - 1 & 2 905 905 196 3.43 311 507
24 NTPC-Talcher - - 14 1.81 - 14
25 NTPC-Darlipalli - - 41 1.16 - 41
26 NTPC-Unchahar - 1 - - 36 4.69 - 36
27 NTPC-Tanda - 2 1 1 91 3.64 0 91
28 NTPC-Barah - 1 865 865 198 3.20 277 474
29 NTPC-Dadri - 1 2,523 297 316 4.82 143 459
Sardar Sarovar Narmada Nigam
30 353 353 - 2.05 72 72
Ltd
Nabinagar Power Generating Co
31 26 26 231 2.65 7 238
Ltd
32 CSGS (MoP Allocation) - - - - - -
33 NHPC Subansiri 590 590 162 2.75 162 325
34 NHPC Rangit-IV 129 129 24 2.19 28 52
35 NHPC Pakaldul 439 439 96 2.14 94 190
36 NHPC Kiru 593 593 121 2.37 141 262
37 NTPC Talcher III 89 89 227 1.48 13 241
38 NHPC Teesta IV 409 409 122 4.59 188 310
39 NHPC Ratle - - - 1.96 - -
40 NHPC Kwar - - - 2.22 - -
41 DVC Raghunathpur - - 414 2.13 - 414
42 DVC Koderma - - 104 1.77 - 104
43 NTPC Sipat-III - - - 1.40 - -
44 DVC Durgapur - - - 1.90 - -
45 DVC Durgapur - - - 1.90 - -
46 DVC Durgapur - - - 1.90 - -
47 Ashvini-JV of NTPC and NPCIL - - - 6.50 - -
Sub Total 42,284 37,478 7,444 9,801 17,245

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Fixed Variable Variable Total

S Available Dispatch
Name of the Station Cost Cost Cost Cost
No. (MU) (MU)
(Rs. Cr.) (Rs./kwh) (Rs.Cr.) (Rs. Cr.)

Others
1 Captive Power - - - 6.61 - -
Renewable -
1 Wind Farms 8,007 8,007 - 3.52 2,819 2,819
2 Solar 10,630 10,630 - 3.92 4,171 4,171
3 Wind (New) 5,552 5,159 - 2.93 1,513 1,513
4 Solar (New) 28,296 27,380 - 2.57 7,023 7,023
5 Hybrid 2,979 2,979 - 2.93 873 873
6 Small/Mini Hydal 88 88 - 3.69 32 32
7 Biomass 184 184 - 1.98 36 36
8 Bagasse 220 209 - 1.98 41 41
9 Waste to Energy 270 369 - 3.67 135 135
10 HPO - - - - - -
11 Solar (Exchange) - - - - - -
12 Wind (Exchange) - - - - - -
13 Others (Exchange) - - - - - -
14 HPO (Exchange) - - - - - -
Sub Total 56,225 55,005 - 16,645 16,645
TOTAL 1,75,257 1,38,763 16,495 - 46,903 63,320

Table 5-34: Projected Power Purchase Cost for FY 2027-28

Fixed Variable Variable Total

S Available Dispatch
Name of the Station Cost Cost Cost Cost
No. (MU) (MU)
(Rs. Cr.) (Rs./kwh) (Rs.Cr.) (Rs. Cr.)
GSECL
1 GSECL Gandhinagar – 5 1,066 117 154 4.65 54 208
2 GSECL Wanakbori – 7 1,190 117 83 4.53 53 136
3 GSECL Utran Expan 183 183 223 9.80 180 402
4 GSECL Dhuvaran – 7 29 29 3 10.63 31 34
5 GSECL Dhuvaran – 8 26 26 99 10.47 27 126

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Fixed Variable Variable Total

S Available Dispatch
Name of the Station Cost Cost Cost Cost
No. (MU) (MU)
(Rs. Cr.) (Rs./kwh) (Rs.Cr.) (Rs. Cr.)

6 GSECL Ukai 2,465 340 295 4.40 150 444

7 GSECL Ukai Expan 2,332 2,332 258 3.85 899 1,156
8 GSECL Gandhinagar 3-4 1,899 233 179 4.58 107 286
9 GSECL Wanakbori 1-6 4,981 703 425 4.60 323 748
10 GSECL Sikka Expansion 1,000 279 656 6.67 186 842
11 GSECL Kutch Lignite 329 40 141 4.40 18 158
12 GSECL Kutch Lignite Exp unit 4 117 40 15 11.96 48 63
13 GSECL Ukai Hydro 731 731 36 - - 36
14 GSECL Kadana Hydro 274 274 70 - - 70
15 GSECL Dhuvaran CCPP III 128 128 239 9.70 124 363
16 GSECL BLTPS 1,324 1,324 225 3.78 501 726
17 GSECL Wanakbori - 8 4,318 4,318 852 3.80 1,641 2,493
18 GSECL Ukai 7 - - - - - -
19 GSECL Gandhinagar - - - - - -
20 GSECL Sikka - - - - - -
21 GSECL Ukai - - - - - -

Sub Total 22,392 11,215 3,953 4,341 8,294

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Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

Fixed Variable Variable Total

S Available Dispatch
Name of the Station Cost Cost Cost Cost
No. (MU) (MU)
(Rs. Cr.) (Rs./kwh) (Rs.Cr.) (Rs. Cr.)

2 Adani Power Ltd Bid 2 9,188 1,324 725 4.11 544 1,268
3 Essar Power Gujarat Ltd 8,354 688 667 4.71 324 991
4 ACB India Ltd 1,489 1,489 195 0.66 98 293
5 Coastal Gujarat Power Co Ltd 13,440 13,440 1,150 4.02 5,403 6,553
6 DB Power 2,175 2,175 597 1.67 363 960
7 MTOA - - - 1.79 - -
8 Pump Storage 101 101 - 5.35 54 54
8 Battery Storage 6,962 1,369 474 4.75 650 1,125
9 Power Exchange - 9,852 - 6.02 5,934 5,934
10 Short term power purchase - 2,483 - 6.63 1,646 1,646
Sub Total 54,355 36,099 5,232 16,540 21,772

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Fixed Variable Variable Total

S Available Dispatch
Name of the Station Cost Cost Cost Cost
No. (MU) (MU)
(Rs. Cr.) (Rs./kwh) (Rs.Cr.) (Rs. Cr.)

19 NTPC-Gadarwara 2,156 2,156 536 3.75 809 1,345

20 NTPC-LARA 1,295 1,295 274 3.82 495 769
21 NTPC-Khargone 1,619 1,619 495 4.06 657 1,152
22 NTPC-Farakka - 3 14 14 66 3.28 4 71
23 NTPC-Farakka - 1 & 2 2 2 196 3.43 1 197
24 NTPC-Talcher - - 14 1.81 - 14
25 NTPC-Darlipalli - - 41 1.16 - 41
26 NTPC-Unchahar - 1 - - 36 4.69 - 36
27 NTPC-Tanda - 2 1 1 91 3.64 0 91
28 NTPC-Barah - 1 130 130 198 3.20 42 239
29 NTPC-Dadri - 1 - - 316 4.82 - 316
Sardar Sarovar Narmada Nigam
30 353 353 - 2.05 72 72
Ltd
Nabinagar Power Generating Co
31 26 26 231 2.65 7 238
Ltd
32 CSGS (MoP Allocation) - - - - - -
33 NHPC Subansiri 590 590 162 2.75 162 325
34 NHPC Rangit-IV 129 129 24 2.19 28 52
35 NHPC Pakaldul 439 439 63 2.14 94 157
36 NHPC Kiru 593 593 120 2.37 141 260
37 NTPC Talcher III 1,072 1,072 227 1.48 159 386
38 NHPC Teesta IV 614 614 120 4.59 282 402
39 NHPC Ratle 137 137 73 1.96 27 100
40 NHPC Kwar 87 87 51 2.22 19 71
41 DVC Raghunathpur 174 334 414 2.13 71 485
42 DVC Koderma 44 83 104 1.77 15 119
43 NTPC Sipat-III - - 1,197 1.40 - 1,197
44 DVC Durgapur - - 75 1.90 - 75
45 DVC Durgapur - - 75 1.90 - 75
46 DVC Durgapur - - 75 1.90 - 75
47 Ashvini-JV of NTPC and NPCIL - - - 6.50 - -
Sub Total 39,752 38,835 8,956 10,078 19,034

Others
1 Captive Power - - - 6.61 - -
Renewable

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Fixed Variable Variable Total

S Available Dispatch
Name of the Station Cost Cost Cost Cost
No. (MU) (MU)
(Rs. Cr.) (Rs./kwh) (Rs.Cr.) (Rs. Cr.)

1 Wind Farms 7,159 7,159 - 3.52 2,520 2,520

2 Solar 10,630 10,630 - 3.92 4,171 4,171
3 Wind (New) 7,035 6,624 - 2.93 1,943 1,943
4 Solar (New) 31,487 30,529 - 2.57 7,831 7,831
5 Hybrid 2,979 2,979 - 2.93 873 873
6 Small/Mini Hydal 88 88 - 3.69 32 32
7 Biomass 184 184 - 1.98 36 36
8 Bagasse 220 248 - 1.98 49 49
9 Waste to Energy 270 369 - 3.67 135 135
10 HPO - - - - - -
11 Solar (Exchange) - - - - - -
12 Wind (Exchange) - - - - - -
13 Others (Exchange) - - - - - -
14 HPO (Exchange) - - - - - -
Sub Total 60,052 58,810 - 17,592 17,592
TOTAL 1,76,551 1,44,959 18,140 - 48,551 66,691

Table 5-35: Projected Power Purchase Cost for FY 2028-29

Fixed Variable Variable Total

S Available Dispatch
Name of the Station Cost Cost Cost Cost
No. (MU) (MU)
(Rs. Cr.) (Rs./kwh) (Rs. Cr.) (Rs. Cr.)

GSECL
1 GSECL Gandhinagar - 5 1,076 118 4.65 55 213
159
2 GSECL Wanakbori - 7 1,200 118 4.53 53 139
86
3 GSECL Utran Expan 185 185 9.80 181 411
229
4 GSECL Dhuvaran - 7 29 29 10.63 31 34
3
5 GSECL Dhuvaran - 8 26 26 10.47 27 130
102
6 GSECL Ukai 2,488 343 4.40 151 454
303
7 GSECL Ukai Expan 2,353 2,335 3.85 900 1,165
266

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Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

Fixed Variable Variable Total

S Available Dispatch
Name of the Station Cost Cost Cost Cost
No. (MU) (MU)
(Rs. Cr.) (Rs./kwh) (Rs. Cr.) (Rs. Cr.)

8 GSECL Gandhinagar 3-4 1,916 235 4.58 108 292

185
9 GSECL Wanakbori 1-6 5,027 710 4.60 326 764
438
10 GSECL Sikka Expansion 1,009 282 6.67 188 864
676
11 GSECL Kutch Lignite 332 41 4.40 18 163
145
12 GSECL Kutch Lignite Exp unit 4 118 41 11.96 49 64
16
13 GSECL Ukai Hydro 738 738 - - 37
37
14 GSECL Kadana Hydro 276 276 - - 72
72
15 GSECL Dhuvaran CCPP III 129 129 9.70 125 372
246
16 GSECL BLTPS 1,336 1,327 3.78 502 733
231
17 GSECL Wanakbori - 8 4,357 4,322 3.80 1,642 2,520
878
18 GSECL Ukai 7 - - - - - -
19 GSECL Gandhinagar - - - - - -
20 GSECL Sikka - - - - - -
21 GSECL Ukai - - - - - -
Sub Total 22,597 11,254 4,071 4,357 8,428

IPP's
1 Gujarat State Energy Generation 366 94 8.69 81 86
5
Gujarat State Energy Generation
2 816 211 8.69 183 321
Expansion 138
Gujarat Industries Power Co Ltd
3 - - - - - -
(165 MW)
Gujarat Industries Power Co Ltd
4 1,233 1,223 2.69 328 466
(SLPP) 138
Gujarat Mineral Development
5 489 485 3.78 184 210
Corp. 26
Gujarat Industries Power Co Ltd
6 18 17 8.91 15 16
(145 MW) 1
Gujarat Industries Power Co Ltd
7 - - 2.73 - 217
(SLPP - Exp) 217

8 GPPC Pipavav 823 421 9.91 417 656

239
- - - - - -

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Paschim Gujarat Vij Company Limited
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Fixed Variable Variable Total

S Available Dispatch
Name of the Station Cost Cost Cost Cost
No. (MU) (MU)
(Rs. Cr.) (Rs./kwh) (Rs. Cr.) (Rs. Cr.)

1 Adani Power Ltd Bid 1 9,017 743 4.37 325 985

660
2 Adani Power Ltd Bid 2 9,272 764 4.11 314 1,038
725
3 Essar Power Gujarat Ltd 8,431 694 4.71 327 994
667
4 ACB India Ltd 1,503 1,490 0.66 98 293
195
5 Coastal Gujarat Power Co Ltd 13,563 13,268 1,150 4.02 5,334 6,484
6 DB Power 2,195 2,177 1.67 364 961
597
7 MTOA - - - 1.79 - -
8 Pump Storage 101 101 - 5.35 54 54

8 Battery Storage 7,026 1,373 4.75 652 1,127

474
9 Power Exchange - 9,852 - 6.02 5,934 5,934
10 Short term power purchase - 2,483 - 6.63 1,646 1,646
Sub Total 54,850 35,395 5,232 16,256 21,488

Central Sector
1 NPC-Tarapur 1 & 2 1,094 1,094 - 3.42 374 374
2 NPC-Tarapur 3 & 4 1,874 1,874 - 3.42 641 641
3 NPC-Kakrapar 4,154 4,154 - 4.08 1,695 1,695
4 NTPC-Vindhyachal - I 1,714 1,699 1.68 286 456
170
5 NTPC-Vindhyachal - II 1,869 1,853 1.61 298 454
156
6 NTPC-Vindhyachal - III 2,208 2,189 1.60 351 601
250
7 NTPC-Korba 2,799 2,775 1.60 445 612
167
8 NTPC-Korba -II 1,046 1,037 1.57 163 285
122
9 NTPC-Kawas 17 17 11.45 19 143
124
10 NTPC-Jhanor 25 25 11.61 29 236
207
11 NTPC-Sipat-I 3,964 3,932 1.55 608 1,210
601
12 NTPC-Sipat - II 2,157 2,139 1.61 344 607
264
13 NTPC-Kahlagaon 1,097 82 2.87 24 133
110

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Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

Fixed Variable Variable Total

S Available Dispatch
Name of the Station Cost Cost Cost Cost
No. (MU) (MU)
(Rs. Cr.) (Rs./kwh) (Rs. Cr.) (Rs. Cr.)

13 NTPC-Kahlagaon I 0 0 2.87 0 110

110
14 NTPC-Vindhyachal - IV 1,864 1,849 1.53 283 691
407
15 NTPC-Mauda 1,791 1,776 3.50 621 930
309
16 NTPC-Mauda-de - - - 3.50 - -
16 NTPC-Vindhyachal - V 729 723 1.63 118 294
176
17 NTPC-Mauda II 2,028 2,011 3.56 716 1,095
379
18 NTPC-Mauda II-de - - - 3.56 - -
18 NTPC-Solapur 125 14 4.82 7 134
127
19 NTPC-Gadarwara 2,176 2,158 3.75 810 1,345
536
20 NTPC-LARA 1,307 1,296 3.82 496 770
274
21 NTPC-Khargone 1,634 157 4.06 64 559
495
22 NTPC-Farakka - 3 14 14 3.28 4 71
66
23 NTPC-Farakka - 1 & 2 2 2 3.43 1 197
196
24 NTPC-Talcher - - 1.81 - 14
14
25 NTPC-Darlipalli - - 1.16 - 41
41
26 NTPC-Unchahar - 1 - - 4.69 - 36
36
27 NTPC-Tanda - 2 1 1 3.64 0 91
91
28 NTPC-Barah - 1 131 130 3.20 42 239
198
29 NTPC-Dadri - 1 - - 4.82 - 316
316
Sardar Sarovar Narmada Nigam
30 356 356 - 2.05 73 73
Ltd
Nabinagar Power Generating Co
31 27 26 2.65 7 238
Ltd 231
32 CSGS (MoP Allocation) - - - - - -
33 NHPC Subansiri 595 595 2.75 164 326
162
34 NHPC Rangit-IV 130 130 2.19 28 52
24

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Fixed Variable Variable Total

S Available Dispatch
Name of the Station Cost Cost Cost Cost
No. (MU) (MU)
(Rs. Cr.) (Rs./kwh) (Rs. Cr.) (Rs. Cr.)

35 NHPC Pakaldul 443 443 2.14 95 187

92
36 NHPC Kiru 599 599 2.37 142 260
118
37 NTPC Talcher III 1,082 1,082 1.48 160 387
227
38 NHPC Teesta IV 619 619 4.59 284 402
118
39 NHPC Ratle 416 416 1.96 81 154
72
40 NHPC Kwar 265 265 2.22 59 110
51
41 DVC Raghunathpur 4,215 4,180 2.13 890 1,304
414
42 DVC Koderma 1,054 1,045 1.77 185 289
104
43 NTPC Sipat-III 468 464 1,197 1.40 65 1,262

44 DVC Durgapur 29 29 1.90 6 81

75
45 DVC Durgapur 29 29 1.90 6 81
75
46 DVC Durgapur 29 29 1.90 6 81
75
47 Ashvini-JV of NTPC and NPCIL - - - 6.50 - -
Sub Total 46,174 43,307 8,979 10,688 19,667

Others
1 Captive Power - - - 6.61 - -
Renewable
1 Wind Farms 7,152 7,152 - 3.52 2,518 2,518
2 Solar 10,727 10,727 - 3.92 4,209 4,209
3 Wind (New) 7,054 6,643 - 2.93 1,948 1,948
4 Solar (New) 34,442 33,481 - 2.57 8,588 8,588
5 Hybrid 3,006 3,006 - 2.93 881 881
6 Small/Mini Hydal 89 89 - 3.69 33 33
7 Biomass 186 186 - 1.98 37 37
8 Bagasse 222 249 - 1.98 49 49
9 Waste to Energy 273 370 - 3.67 136 136
10 HPO - - - - - -
11 Solar (Exchange) - - - - - -

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Fixed Variable Variable Total

S Available Dispatch
Name of the Station Cost Cost Cost Cost
No. (MU) (MU)
(Rs. Cr.) (Rs./kwh) (Rs. Cr.) (Rs. Cr.)

12 Wind (Exchange) - - - - - -
13 Others (Exchange) - - - - - -
14 HPO (Exchange) - - - - - -
Sub Total 63,151 61,902 - 18,399 18,399
TOTAL 1,86,772 1,51,858 18,282 - 49,700 67,982

Table 5-36: Projected Power Purchase Cost for FY 2029-30

Fixed Variable Variable Total
S Available Dispatch
Name of the Station Cost Cost Cost Cost
No. (MU) (MU)
(Rs. Cr.) (Rs./kwh) (Rs.Cr.) (Rs. Cr.)
GSECL
1 GSECL Gandhinagar - 5 1,066 117 164 4.65 54 218
2 GSECL Wanakbori - 7 1,190 117 88 4.53 53 141
3 GSECL Utran Expan 183 183 236 9.80 180 416
4 GSECL Dhuvaran - 7 29 29 3 10.63 31 34
5 GSECL Dhuvaran - 8 26 26 105 10.47 27 132
6 GSECL Ukai 2,465 340 312 4.40 150 462
7 GSECL Ukai Expan 2,332 2,332 274 3.85 899 1,172
8 GSECL Gandhinagar 3-4 1,899 233 190 4.58 107 297
9 GSECL Wanakbori 1-6 4,981 703 451 4.60 323 774
10 GSECL Sikka Expansion 1,000 279 696 6.67 186 882
11 GSECL Kutch Lignite 329 40 149 4.40 18 167
12 GSECL Kutch Lignite Exp unit 4 117 40 16 11.96 48 64
13 GSECL Ukai Hydro 731 731 38 - - 38
14 GSECL Kadana Hydro 274 274 74 - - 74
15 GSECL Dhuvaran CCPP III 128 128 253 9.70 124 378
16 GSECL BLTPS 1,324 1,324 238 3.78 501 739
17 GSECL Wanakbori - 8 4,318 4,318 904 3.80 1,641 2,545
18 GSECL Ukai 7 - - - - - -
19 GSECL Gandhinagar - - - - - -
20 GSECL Sikka - - - - - -
21 GSECL Ukai - - - - - -

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Fixed Variable Variable Total

S Available Dispatch
Name of the Station Cost Cost Cost Cost
No. (MU) (MU)
(Rs. Cr.) (Rs./kwh) (Rs.Cr.) (Rs. Cr.)
Sub Total 22,392 11,215 4,193 4,341 8,534

IPP's
1 Gujarat State Energy Generation 363 93 5 8.69 81 85
Gujarat State Energy Generation
2 808 209 138 8.69 181 319
Expansion
Gujarat Industries Power Co Ltd
3 - - - - - -
(165 MW)
Gujarat Industries Power Co Ltd
4 1,222 1,222 138 2.69 328 466
(SLPP)
Gujarat Mineral Development
5 484 484 26 3.78 183 209
Corp.
Gujarat Industries Power Co Ltd
6 18 17 1 8.91 15 16
(145 MW)
Gujarat Industries Power Co Ltd
7 - - 217 2.73 - 217
(SLPP - Exp)
8 GPPC Pipavav 815 418 239 9.91 414 652
- - - - - -
1 Adani Power Ltd Bid 1 8,935 736 660 4.37 322 982
2 Adani Power Ltd Bid 2 9,188 1,623 725 4.11 666 1,391
3 Essar Power Gujarat Ltd 8,354 688 667 4.71 324 991
4 ACB India Ltd 1,489 1,489 195 0.66 98 293
5 Coastal Gujarat Power Co Ltd 13,440 13,440 1,150 4.02 5,403 6,553
6 DB Power 2,175 2,175 597 1.67 363 960
7 MTOA - - - 1.79 - -
8 Pump Storage 101 101 - 5.35 54 54
8 Battery Storage 6,962 1,369 474 4.75 650 1,125
9 Power Exchange - 9,852 - 6.02 5,934 5,934
10 Short term power purchase - 2,483 - 6.63 1,646 1,646
Sub Total 54,355 36,397 5,232 16,663 21,895

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Fixed Variable Variable Total

S Available Dispatch
Name of the Station Cost Cost Cost Cost
No. (MU) (MU)
(Rs. Cr.) (Rs./kwh) (Rs.Cr.) (Rs. Cr.)
7 NTPC-Korba 2,773 2,773 167 1.60 445 612
8 NTPC-Korba -II 1,036 1,036 122 1.57 163 285
9 NTPC-Kawas 17 17 124 11.45 19 143
10 NTPC-Jhanor 24 24 207 11.61 28 236
11 NTPC-Sipat-I 3,929 3,929 601 1.55 608 1,209
12 NTPC-Sipat - II 2,138 2,138 264 1.61 344 607
13 NTPC-Kahlagaon 1,087 81 110 2.87 23 133
13 NTPC-Kahlagaon I 0 0 110 2.87 0 110
14 NTPC-Vindhyachal - IV 1,847 1,847 407 1.53 283 690
15 NTPC-Mauda 1,775 1,775 309 3.50 621 930
16 NTPC-Mauda-de - - - 3.50 - -
16 NTPC-Vindhyachal - V 722 722 176 1.63 118 294
17 NTPC-Mauda II 2,009 2,009 379 3.56 715 1,094
18 NTPC-Mauda II-de - - - 3.56 - -
18 NTPC-Solapur 124 14 127 4.82 7 134
19 NTPC-Gadarwara 2,156 2,156 536 3.75 809 1,345
20 NTPC-LARA 1,295 1,295 274 3.82 495 769
21 NTPC-Khargone 1,619 1,619 495 4.06 657 1,152
22 NTPC-Farakka - 3 14 14 66 3.28 4 71
23 NTPC-Farakka - 1 & 2 2 2 196 3.43 1 197
24 NTPC-Talcher - - 14 1.81 - 14
25 NTPC-Darlipalli - - 41 1.16 - 41
26 NTPC-Unchahar - 1 - - 36 4.69 - 36
27 NTPC-Tanda - 2 1 1 91 3.64 0 91
28 NTPC-Barah - 1 130 130 198 3.20 42 239
29 NTPC-Dadri - 1 - - 316 4.82 - 316
Sardar Sarovar Narmada Nigam
30 353 353 - 2.05 72 72
Ltd
Nabinagar Power Generating Co
31 26 26 231 2.65 7 238
Ltd
32 CSGS (MoP Allocation) - - - - - -
33 NHPC Subansiri 590 590 162 2.75 162 325
34 NHPC Rangit-IV 129 129 24 2.19 28 52
35 NHPC Pakaldul 439 439 89 2.14 94 183
36 NHPC Kiru 593 593 117 2.37 141 257

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Fixed Variable Variable Total

S Available Dispatch
Name of the Station Cost Cost Cost Cost
No. (MU) (MU)
(Rs. Cr.) (Rs./kwh) (Rs.Cr.) (Rs. Cr.)
37 NTPC Talcher III 1,072 1,072 227 1.48 159 386
38 NHPC Teesta IV 614 614 116 4.59 282 398
39 NHPC Ratle 412 412 71 1.96 81 152
40 NHPC Kwar 262 262 50 2.22 58 108
41 DVC Raghunathpur 4,177 4,177 414 2.13 890 1,303
42 DVC Koderma 1,044 1,044 104 1.77 185 289
43 NTPC Sipat-III 5,570 5,570 1,197 1.40 780 1,977
44 DVC Durgapur 348 348 75 1.90 66 141
45 DVC Durgapur 348 348 75 1.90 66 141
46 DVC Durgapur 348 348 75 1.90 66 141
47 Ashvini-JV of NTPC and NPCIL 113 9 - 6.50 6 6
Sub Total 51,932 50,712 8,971 12,144 21,115

Others
1 Captive Power - - - 6.61 - -
Renewable
1 Wind Farms 6,870 6,870 - 3.52 2,419 2,419
2 Solar 10,630 10,630 - 3.92 4,171 4,171
3 Wind (New) 7,035 6,624 - 2.93 1,943 1,943
4 Solar (New) 34,351 33,392 - 2.57 8,566 8,566
5 Hybrid 2,979 2,979 - 2.93 873 873
6 Small/Mini Hydal 88 88 - 3.69 32 32
7 Biomass 184 184 - 1.98 36 36
8 Bagasse 220 248 - 1.98 49 49
9 Waste to Energy 270 369 - 3.67 135 135
10 HPO - - - - - -
11 Solar (Exchange) - - - - - -
12 Wind (Exchange) - - - - - -
13 Others (Exchange) - - - - - -
14 HPO (Exchange) - - - - - -
Sub Total 62,627 61,385 - 18,225 18,225
TOTAL 1,91,306 1,59,709 18,396 - 51,373 69,769

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5.9.5 Transmission and other costs

PGVCL has submitted that the total power purchase cost during the MYT control period also consists
of Transmission Charges, GUVNL charges and SLDC Fees and Charges in addition to the above-
mentioned fixed cost and variable charges. The details of such charges are as under:

A. Transmission Charges
• The transmission charges of GETCO have been considered as per the Draft Tariff petition
of GETCO for MYT Control Period FY 2025-26 to FY 2029-30.
• PGCIL charges for the Control period are considered based on actual payment made in latest
month of FY 2023-24.
• SLDC Fees and Charges have also been considered as per the Draft Tariff petition of SLDC
for MYT Control Period FY 2025-26 to FY 2029-30.
Based on the transmission costs of PGCIL, GETCO and SLDC, the total transmission costs to be
included in the overall Power Purchase Costs of all DISCOMs, is shown in the Table below:

Table 5-37: Projected Transmission Charges for MYT Control Period (Rs. Crore)

S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
1 PGCIL Charges 3,489 3664 3847 4039 4241
2 NLDC/RLDC Charges 9.85 10.34 10.86 11.40 11.97
Annual Transmission
3 5,774 6,236 6,735 7,274 7,856
Charges of GETCO
4 SLDC Charges 41 41 41 41 41
B. GUVNL Cost

PGVCL has submitted that GUVNL is entrusted with the function of Bulk Power Purchase on behalf
of four Distribution Companies and Bulk Supply to Distribution Companies for onwards retail supply
to consumers, trading of surplus power on behalf of Distribution Companies and activities related to
overall coordination between its subsidiary companies. GUVNL is procuring power on behalf of all
Discoms to have an economical and optimised power purchase cost. It also undertakes the function
of raising and managing the overall loan portfolio of GUVNL and its subsidiaries. GUVNL is

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charging Rs. 0.04 for every unit transacted. The total cost has been arrived upon after considering
the total dispatchable units required to be served to all the four Discoms during the MYT Control
Period.

Table 5-38: GUVNL Cost for MYT Control Period (Rs. Crore)
FY FY FY FY FY
Particulars
2025-26 2026-27 2027-28 2028-29 2029-30

GUVNL Cost @ 4 Paisa per Unit 539 557 583 610 639

5.9.6 Total Power Purchase Cost

Fixed Cost

The Table below shows the total fixed cost projected for MYT Control Period:

Table 5-39: Projected Fixed Cost for DISCOMs for MYT Control Period (Rs. Crore)
PGCIL NLDC/RLDC SLDC
Year Fixed cost GETCO Cost
Charges Charges Charges
FY 2025-26 15,601 5,774 3,489 9.85 41
FY 2026-27 16,495 6,236 3,664 10.34 41
FY 2027-28 18,140 6,735 3,847 10.86 41
FY 2028-29 18,282 7,274 4,039 11.40 41
FY 2029-30 18,396 7,856 4,241 11.97 41

Variable Cost

The Table below shows the total variable cost projected for MYT Control Period:

Table 5-40: Projected Variable Cost for DISCOMs for MYT Control Period
GUVNL Total variable Variable Cost Variable
Variable cost Despatched DISCOM
Year Cost Cost per Unit Cost
(Rs. Crore) (MUs) (MUs)
(Rs. Crore) (Rs. Crore) (Rs./kWh) (Rs. Crore)
FY 2025-26 46,916 539 47,455 1,34,786 3.52 1,34,786 47,455
FY 2026-27 46,903 557 47,460 1,39,259 3.41 1,39,259 47,460

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GUVNL Total variable Variable Cost Variable

Variable cost Despatched DISCOM
Year Cost Cost per Unit Cost
(Rs. Crore) (MUs) (MUs)
(Rs. Crore) (Rs. Crore) (Rs./kWh) (Rs. Crore)
FY 2027-28 48,631 583 49,213 1,45,686 3.38 1,45,686 49,213
FY 2028-29 49,777 610 50,387 1,52,529 3.30 1,52,529 50,387
FY 2029-30 51,452 639 52,091 1,59,740 3.26 1,59,740 52,091

5.9.7 Net Power Purchase Cost

The net power purchase cost is shown below:

Table 5-41: Projected Net Power Purchase Cost for MYT Control Period (Rs. Crore)
DISCOMs Fixed DISCOMs Variable Total Power
Year
cost Cost purchase cost
FY 2025-26 24,916 47,455 72,371
FY 2026-27 26,446 47,460 73,906
FY 2027-28 28,774 49,213 77,987
FY 2028-29 29,647 50,387 80,035
FY 2029-30 30,546 52,091 82,637

5.9.8 Bulk Supply Tariff (BST)

The objective of the differentiation of the BST between Discoms is due to the fact that the revenues
from tariff for each Discom are different due to different consumer mix and therefore, it is necessary
to build a mechanism in the projections to bring them to a level playing field. The basic objective of
Bulk Supply Tariff is that:

• GUVNL shall purchase power from various sources in bulk and supply power to DISCOMs
for onward retail supply.
• To ensure uniform retail consumer Tariffs in the four DISCOMs.
• Since each of the DISCOM was incorporated on the basis of earlier zonal system, the
consumer mix and consumption mix are different for each DISCOM. Consequently, the
revenue earning capability of each DISCOM is different.

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• It is necessary to build a mechanism to bring them to a level playing field in their paying
capacity for power purchase and it is proposed to be achieved by different BST to each of
the DISCOMs.
By undertaking the BST method, it would be possible to ensure uniform retail consumer Tariffs in
the four DISCOMs.

PGVCL submitted that when the erstwhile GEB was unbundled into seven entities, it was decided
by the State Government that GUVNL shall purchase the entire power requirement from GSECL,
Central Generating Companies, Traders, MPPs, IPPs and any other source available to meet the
demand of the DISCOMs and shall perform the activity of bulk supplier of power to all the four
Distribution Companies at Bulk supply Tariff. In accordance with this arrangement related to power
procurement, the Distribution Licensee has entered into bulk supply arrangement / agreement with
GUVNL to meet its supply obligations.

The State Government has envisaged uniform retail supply tariff in the four Discoms (of the
unbundled GEB), so that the consumers belonging to the similar categories within the State could
have a similar tariff and there may not be any discrimination between the consumers which is also
the objective of the Electricity Act 2003.

It is submitted that since more than 80% of the total cost incurred by DISCOM is towards Power
Purchase, the same plays a major role in determining the Annual Revenue Requirement as well as
Revenue (Gap) / Surplus for the DISCOM for a particular year. Since, the consumer profile and
consumption profiles are different in the four Distribution Companies, the revenue earning
capabilities of each of the DISCOM differs resulting in different Annual Revenue Requirement.
Therefore, it is necessary to build a mechanism in the projections to bring them to a level playing
field. This is proposed to be achieved by differential Bulk Supply tariff (BST) to each of the
DISCOMs which was already adopted by the Commission in the previous Tariff Orders. In this way,
it would be possible to ensure uniform retail consumer tariffs in the four DISCOMs.

5.9.9 Allocation of Power Purchase Cost under BST mechanism

Petitioner’s submission

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The Net Power Purchase cost worked out in the above section has been allocated for the MYT control
period based on the methodology adopted by the Commission. As per this methodology, the amount
available to Discom for power purchase is computed by deducting other expenses (other than power
purchase expenses) from total revenue of Discom i.e. revenue from sale of power to consumers, non-
tariff income, Agricultural subsidy and FPPPA.

Table 5-42: Allocation of Power Purchase Cost for FY 2025-26

S. No. Particulars DGVCL MGVCL PGVCL UGVCL
1 Sales (MUs) 33,213.69 14,103.39 40,048.65 31,009.70
2 Revenue from Existing Tariff 16,718.97 6,708.72 16,881.15 11,500.74
Revenue from FPPPA @ Rs.
3 9,133.77 3,878.43 11,013.38 8,527.67
2.75/ unit
Other Income (Consumer
4 684.06 154.85 380.87 269.05
Related)

5 Agricultural Subsidy 53.19 450.64 526.31

69.86
6 Total 26,589.98 10,811.86 28,726.04 20,823.77
Expense other than Power
7 1,488.28 1,328.27 3,938.06 1,977.06
Purchase

8 Power Purchase Cost of SSDSP 47.63 433.54 199.95

73.86
Amount Available with
9 DISCOM for Power purchase 25,054.07 9,409.73 24,354.44 18,646.76
from GUVNL

Table 5-43: Total Revenue (Gap)/ Surplus (Rs. Crore) for FY 2025-26
Sr. No. Particulars 2025-26
1 Power Purchase Cost of GUVNL 72,371
2 Aggregate Amount available for power purchase from GUVNL 77,465
3 Revenue (Gap)/Surplus 5,094

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Table 5-44: Bulk Supply Tariff for FY 2025-26

S.
Particulars DGVCL MGVCL PGVCL UGVCL
No.
1 Revenue (Gap)/Surplus (Rs. Crore) 5,094
2 Ratio of allocation of Revenue (Gap)/Surplus 27% 12% 36% 26%
3 Revenue (Gap)/ Surplus allocation (Rs. Crore) 1,378.32 591.26 1,822.70 1,301.66
Amount Available with DISCOM for Power purchase
4 25,054.07 9,409.73 24,354.44 18,646.76
from GUVNL (Rs. Crore)
5 Power purchase cost of GUVNL (Rs. Crore) 23,675.75 8,818.47 22,531.74 17,345.10
6 Power purchase cost of SSDSP (Rs. Crore) 47.63 73.86 433.54 199.95
7 Power purchase cost of DISCOM (Rs. Crore) 23,723.38 8,892.33 22,965.28 17,545.05
8 Energy Purchase in DISCOM (MUs) 36,667.13 15,943.28 49,726.95 35,135.34
9 Bulk Supply Tariff (Rs. / kWh) 6.47 5.58 4.62 4.99

5.10 Power Purchase Cost for MYT Control Period - Commission’s Analysis
5.10.1 Power Purchase from SSDSP

Petitioner has submitted that it has considered notification of the State Government for development
of SSDSP. Therefore, Discoms have signed PPAs under SSDSP and power generation will be
available at Distribution level. Discoms have worked out power generation from SSDSP based on
the quantum of PPA signed, expected COD and CUF. The Commission has gone through the
submissions regarding power purchased from SSDSP and finds it prudent to allow the same.
Accordingly, the Commission has approved the power purchase from SSDSP as projected by
Discoms, which is shown in the table below:

Table 5-45: Approved Power Purchase under SSDSP for FY 2025-26

S. No. Particulars Unit DGVCL MGVCL PGVCL UGVCL Total
MW Capacity tied up under
1 MW - - 476 152 628
SSDSP

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S. No. Particulars Unit DGVCL MGVCL PGVCL UGVCL Total

2 Expected CUF % 20% 20% 20% 20%
Expected Generation from
3 MU - - 833.95 266.30 1,100.25
SSDSP
4 Existing Local Purchase MU 196.51 298.42 664.27 427.05 1,586.25

5 Power Purchase Rate Rs./kWh 3.00 3.00 3.00 3.00

6 New Purchase in FY25-26 Rs. Crore - - 250.19 79.89 330.08

7 Existing Local Purchase Rs. Crore 47.63 73.86 183.35 120.06 424.90

8 Power Purchase Cost Rs. Crore 47.63 73.86 433.54 199.95 754.98

Table 5-46: Approved Power Purchase under SSDSP for FY 2026-27

S. No. Particulars Unit DGVCL MGVCL PGVCL UGVCL Total
MW Capacity tied up under
1 MW 61.50 90.50 535 195 882
SSDSP
2 Expected CUF % 20% 20% 20% 20%

Expected Generation from

3 MU 107.75 158.56 937.32 341.64 1,545.26
SSDSP

4 Existing Local Purchase MU 196.51 298.42 1,498.22 693.35 2,686.51

5 Power Purchase Rate Rs./kWh 3.00 3.00 3.00 3.00

6 New Purchase in FY26-27 Rs. Crore 32.32 47.57 281.20 102.49 463.58

7 Existing Local Purchase Rs. Crore 47.63 73.86 433.54 199.95 754.98

8 Power Purchase Cost Rs. Crore 79.95 121.43 714.73 302.44 1,218.56

5.10.2 Power Purchase Sources

As mentioned earlier, Discoms have submitted that GUVNL has entered into contracts for the
existing capacity with GSECL, Central Generating Companies, IPPs, Renewable energy sources -
Hydro, Solar, Wind, Other RE Sources, IPPs and Power tied up through competitive bidding, etc.
The details of the existing plants are given in Table 5-26. GSECL in its Petition No. 2418/2024 for

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True up of FY 2023-24 and determination of ARR for the Control Period, stated that PPA for
Dhuvaran CCPP-1 Station got expired in January 2024. However, DISCOMs have considered
sourcing power from Dhuvaran CCPP-1 Station for the years of Control Period. The Commission
for the projection of power purchase cost for the Control Period has considered the submission of the
DISCOMs regarding sourcing of power from Dhuvaran CCP-1 Station, but it is clarified that
sourcing of power from this Station shall only be allowed by the Commission after approval of power
procurement from this Station. GUVNL has also entered into contracts for additional capacity likely
to be commissioned during MYT Control Period. The details of additional plants likely to be
commissioned in MYT Control Period are given in the relevant section..

The capacity projected by the petitioner from each of the sources are summarised in the Table below:

Table 5-47: Capacity Contracted Source-Wise by GUVNL as submitted by PGVCL (MW)

S. No Particulars Capacity (MW)
1 GSECL 6,677
2 IPPs 1,987
3 Central Generating Stations 7,876
4 Renewable 8,320
5 Competitive Bidding & PX 6,561
6 Other- CPP 8
Total 31,429

Capacity Addition

The capacity addition envisaged during MYT Control Period is around 22,733 MW. The operational
parameters, annual fixed cost and variable cost per unit for these plants is given in the relevant
section. An energy source wise summary of these plants is given below. The Annual Fixed Cost and
the availability from the envisaged capacity during the MYT control period have been considered on
a year-wise basis, factoring in the month of commissioning for each project.

Table 5-48: Source wise additional capacity envisaged for MYT Control Period (MW)

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S. No. Energy Source Capacity (MW)

1 Solar 14,120
2 Coal 5,247
3 Wind 1,240
4 Hybrid 1,032
5 Hydro 803
6 Nuclear 200
7 WTE 60
8 Bagasse 32
Total 22,733

Decapitalisation of Existing Plants

Discoms/GUVNL have submitted a list of plants/capacity that are to complete their useful life and
will be decapitalised during the MYT Control Period. An energy source wise summary of the
capacity to be decapitalised is given below. The Annual Fixed Cost and the availability from this
capacity during the MYT control period have been considered on a year-wise basis, factoring in the
month of decapitalisation for each project.

Table 5-49: Decapitalisation envisaged during MYT Control Period (MW)

S. No. Energy Source Capacity (MW)
1 Coal 1,815
2 Wind 799
Total 2,614

Renewable Purchase Obligation (RPO)

The petitioner has submitted the details for RPO compliance for MYT Control Period as discussed
in the relevant section. The Commission has approved the total energy requirement of 1,31,927 MUs
for all the four DISCOMs for FY 2025-26 based on the energy balance and energy requirement
approved for the respective DISCOMs.

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The Commission has notified draft GERC (Procurement of Energy from Renewable Sources)
Regulations, 2024 in which the RPO targets up to FY 2029-30 have been specified. Also, while
computing the RE capacity for the MYT Control Period, the petitioner has considered existing tied
up sources along with new RE plants expected to be commissioned during MYT Control Period. The
list of new plants expected to be operational in FY 2025-26 are shown in the table below:

Table 5-50: New RE Plants coming up during the MYT Control Period
Particular Solar Wind Others HPO Total
Additional Power Purchase (MW) 14,056 2,322 92 803 17,272
Additional Power Purchase (MU) 34,351 7,035 535 1,169 43,090
Power Purchase Cost (Rs./kwh) 2.61 3.10 4.73 5.00 2.78
Power Purchase Cost (Rs. Crore) 8,953 2,183 253 585 11,974

The Commission has considered existing tied up sources and capacity of new plants expected to be
operational during FY 2025-26.

Accordingly, the Commission has approved the procurement of RE power for meeting RPO target
for FY 2025-26, as detailed in the table below:

Table 5-51: Procurement from RE for meeting projected RPO for FY 2025-26 to FY 2029-30 (MUs)
FY FY 2026- FY 2027- FY
Particulars FY 2029-30
2025-26 27 28 2028-29

Total Power Purchase (A)

134,614 139,603 144,939 150,563 156,496
RPO Target (%) (B) 33.01% 35.95% 38.81% 41.36% 43.33%

RPO Target (C)

44,436 50,187 56,251 62,273 67,810

RE Purchase (D)
42,985 58,812 63,520 66,122 65,935
Unmet RPO (C-D)
1,451 - - - 1,874

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The RPO can be met through wheeling by consumers for captive/ third party consumption who won’t
claim RE attributes and consumption of Roof Top consumers as per the relevant Regulations / Orders
of the Commission. For projecting power purchase for the MYT Control Period, the Commission
has considered the balance unmet RPO energy priced at the average Green Day Ahead Market
(GDAM) price during Apr-24 to Feb-25 which comes to Rs 4.87/kWh.

5.10.3 Merit Order despatch and Total Energy requirement

As discussed in the relevant section, in order to optimize the Power Purchase Cost, Discoms/GUVNL
has worked out a comprehensive merit order despatch (MOD).

The Commission in the analysis of energy sales projected by DISCOMs has approved energy sales
and energy requirement of each DISCOM.

The energy requirement projected, and energy requirement approved for each DISCOM by the
Commission are summarised below:

Table 5-52: Energy Requirement and Despatch for MYT Control Period (MUs)
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30
DISCOM
Projected Approved Projected Approved Projected Approved Projected Approved Projected Approved
DGVCL 36,471 35,222 38,575 37,254 40,938 39,541 43,459 41,981 46,149 44,584
MGVCL 15,645 15,505 16,089 15,938 16,732 16,554 17,480 17,196 18,262 17,866
PGVCL 48,229 47,277 49,031 47,299 50,897 48,354 52,843 49,458 54,872 50,612
UGVCL 34,442 33,924 35,564 34,881 37,118 36,257 38,747 37,696 40,457 39,202
Total
1,34,786 1,31,927 1,39,259 1,35,371 1,45,686 1,40,707 1,52,529 1,46,331 1,59,740 1,52,264
Requirement
Total Despatch 1,34,786 1,31,927 1,39,259 1,35,371 1,45,686 1,40,707 1,52,529 1,46,331 1,59,740 1,52,264

5.10.4 Methodology for Forecasting Power Purchase Cost of GUVNL

In order to optimise the power purchase cost, the Commission has worked out comprehensive MOD.
The dispatch from individual generating stations has been worked out by the Commission based on
the merit order of the variable cost of each generating unit as follows:

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• The NPC power plants, renewable and hydro plants have been considered as must run power
plants.
• During merit order despatch, at least 7% availability of each plant has been considered to take
care of the peak loads and peak season requirements.
• Availability of Thermal Stations has been considered at 85% / 80% as defined in Regulations
(CERC/GERC) and performance in previous years. Wherever required, the availability has
been changed to reflect the likely scenario based on past trends or other factors.
• The Fixed Cost, Variable Cost and PLF for existing GSECL Stations have been considered as
approved in corresponding MYT order for GSECL.
• The Fixed Cost, Variable Cost and PLF for IPP, renewable and central sector plants have been
considered as projected by the Petitioner.
• For Private IPPs, FC and VC have been considered based on likely cost as per PPAs.

5.10.5 Power Purchase Cost

The power purchase costs for the MYT Control Period are shown in the tables hereafter. These
include the energy available from each station, as estimated by the Commission, and energy
dispatchable, based on merit order as discussed above.

The source-wise power purchase cost for each year of the MYT Control Period as approved by the
Commission is shown in the Table below:

Table 5-53: Approved Power Purchase Cost for FY 2025-26

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Total
Fixed Variable Total Power
S. Available Dispatch Variable
Name of the Station Charge Charges Purchase cost
No. Charge
(MU) (MU) Rs. Crore Rs./kWh Rs. Crore Rs. Crore
7 GSECL Ukai Expan 2,332 2,332 406 3.69 860 1,266
GSECL Gandhinagar 1-4
8
(3-4)
1,899 233 396 4.31 100 497
9 GSECL Wanakbori 1-6 4,981 703 666 4.76 335 1,001
10 GSECL Sikka Expansion 1,000 279 551 5.77 161 712
11 GSECL Kutch Lignite (1-3) 329 40 213 4.30 17 230
GSECL Kutch Lignite Exp
12
unit 4
117 117 78 4.10 48 126
13 GSECL Ukai Hydro 731 731 40 - - 40
14 GSECL Kadana Hydro 274 274 76 - - 76
GSECL Dhuvaran CCPP
15
III
128 128 243 9.75 125 368
16 GSECL BLTPS 1,324 1,324 519 3.78 501 1,019
17 GSECL Wanakbori - 8 4,318 4,318 714 4.04 1,744 2,458

GSECL - capacity
addition
1 GSECL Ukai 7 - - - 3.70 - -
GSECL Gandhinagar,
2
Sikka & Ukai
- - - 4.43 - -

IPP’s
Gujarat State Energy
1
Generation
363 93 - 8.69 81 81
Gujarat State Energy
2
Generation Expansion
808 209 138 8.69 181 319
Gujarat Industries Power
3
Co Ltd (165 MW)
- - - - - -
Gujarat Industries Power
4
Co Ltd (SLPP)
1,222 1,222 138 2.69 328 466
Gujarat Mineral
5
Development Corporation
484 484 26 3.78 183 209
Gujarat Industries Power
6
Co Ltd (145 MW)
18 17 10 8.91 15 25
Gujarat Industries Power
7
Co Ltd (SLPP - Exp)
1,436 1,436 217 2.73 392 609
8 GPPC Pipavav 815 418 239 9.91 414 652

Central Sector
1 NPC-Tarapur (1 & 2) - - - 3.42 - -

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Total
Fixed Variable Total Power
S. Available Dispatch Variable
Name of the Station Charge Charges Purchase cost
No. Charge
(MU) (MU) Rs. Crore Rs./kWh Rs. Crore Rs. Crore
2 NPC-Tarapur (3 & 4) 1,857 1,857 - 3.42 635 635
3 NPC-Kakrapar 4,116 4,116 - 4.08 1,680 1,680
4 NTPC-Vindhyachal - I 1,698 1,698 170 1.68 285 455
5 NTPC-Vindhyachal - II 1,852 1,852 156 1.61 298 454
6 NTPC-Vindhyachal - III 2,188 2,188 250 1.60 351 601
7 NTPC-Korba 2,758 2,758 166 1.60 442 608
8 NTPC-Korba -II 1,036 1,036 122 1.57 163 285
9 NTPC-Kawas 17 17 124 11.45 19 143
10 NTPC-Jhanor 24 24 207 11.61 28 236
11 NTPC-Sipat-I 3,929 3,929 601 1.55 608 1,209
12 NTPC-Sipat - II 2,138 2,138 264 1.61 344 607
13 NTPC-Kahlagaon - I 954 954 100 2.87 274 373
14 NTPC-Vindhyachal - IV 1,847 1,847 407 1.53 283 690
15 NTPC-Mauda 3,190 3,190 556 3.50 1,116 1,672
16 NTPC-Vindhyachal - V 722 722 176 1.63 118 294
17 NTPC-Mauda II 3,236 3,236 610 3.56 1,152 1,762
18 NTPC-Solapur 124 14 127 4.82 7 134
19 NTPC-Gadarwara 2,156 2,156 536 3.75 809 1,345
20 NTPC-LARA 1,295 1,295 274 3.82 495 769
21 NTPC - Khargone 1,619 1,619 495 4.06 657 1,152
22 NTPC-Farakka - 3 348 348 64 3.28 114 178
23 NTPC-Kahalgaon - II 882 882 112 3.16 279 391
24 NTPC-Farakka - 1 2,000 2,000 195 3.43 686 881
25 NTPC-Talcher 148 148 13 1.81 27 40
26 NTPC-Darlipalli 91 91 37 1.16 11 48
27 NTPC-Unchahar - 1 235 33 35 4.69 16 50
28 NTPC-Tanda - 2 292 292 83 3.64 106 190
29 NTPC-Barah 865 865 198 3.20 277 474
30 NTPC-Dadri 2,753 324 316 4.82 156 472
31 SSNNL 353 353 - 2.05 72 72
32 NTPC-NSTPS 353 353 231 2.65 94 325

Central Sector - capacity

addition

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Total
Fixed Variable Total Power
S. Available Dispatch Variable
Name of the Station Charge Charges Purchase cost
No. Charge
(MU) (MU) Rs. Crore Rs./kWh Rs. Crore Rs. Crore
1 NHPC Subansiri 590 590 162 2.75 162 325
2 NHPC Rangit-IV 118 118 22 2.19 26 48
3 NHPC Pakaldul 329 329 74 2.14 70 144
4 NHPC Kiru 49 49 10 2.37 12 22
5 NTPC Talcher III - - - 1.48 - -
6 NHPC Teesta IV - - - 4.59 - -
7 NHPC Ratle - - - 1.96 - -
8 NHPC Kwar - - - 2.22 - -
9 DVC Raghunathpur - - - 2.13 - -
10 DVC Koderma - - - 1.77 - -
11 NTPC Sipat-III - - - 1.40 - -
12 DVC Raghunathpur - addl - - - 3.70 - -
13 DVC Koderma - addl - - - 2.13 - -
14 DVC Durgapur - - - 1.90 - -
Ashvini-JV of NTPC and
15
NPCIL
- - - 6.50 - -

Others
Captive Power 1 1 - 6.61 0 0
Renewable
1 Wind Farms 7,911 7,911 - 3.52 2,785 2,785
2 Solar 8,479 8,479 - 3.92 3,327 3,327
3 Small/Mini Hydel 69 69 - 3.69 25 25
4 Biomass 184 184 - 1.98 36 36
5 Waste to Energy 30 30 - 3.67 11 11

Renewable-new
1 Wind Farms - new 2,725 2,725 - 2.93 799 799
2 Solar - new 18,967 18,967 - 2.56 4,862 4,862
3 Hybrid - - - 2.93 - -
4 Bagasse 24 24 - 1.98 5 5
5 Waste to Energy - new 340 340 - 3.67 125 125
6 Battery Storage 383 383 - 4.75 182 182
7 Pump Storage 101 101 - 5.35 54 54

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Total
Fixed Variable Total Power
S. Available Dispatch Variable
Name of the Station Charge Charges Purchase cost
No. Charge
(MU) (MU) Rs. Crore Rs./kWh Rs. Crore Rs. Crore

Competitive Bidding
Adani Power Mundra Ltd
1
(Bid 1)
8,935 736 662 4.37 322 984
Adani Power Mundra Ltd
2
(Bid 2)
9,188 2,767 741 4.11 1,137 1,877
3 Essar Power Gujarat Ltd 8,354 688 299 4.71 324 624
4 ACB India Ltd 1,489 1,489 129 0.66 98 227
5 Tata Power Company Ltd 13,440 13,440 985 4.02 5,403 6,388
Medium Term Power
6
Purchase
- - - 1.79 - -
7 Power Exchange - 7,389 - 6.02 4,450 4,450
8 Short term power purchase - 1,862 - 6.63 1,235 1,235
Power Exchange - GDAM
9
(unmet RPO)
- 1,451 - 4.87 706 706
Competitive Bidding-new
1 D B Power 2,175 2,175 597 1.67 363 960
Total 156,497 131,927 16,028 44,961 60,989

Table 5-54: Approved Power Purchase Cost for FY 2026-27

Total
Fixed Variable Total Power
S. Available Dispatch Variable
Name of the Station Charge Charges Purchase cost
No. Charge
(MU) (MU) Rs. Crore Rs./kWh Rs. Crore Rs. Crore
GSECL
1 GSECL Gandhinagar - 5 1,066 117 111 4.28 50 161
2 GSECL Wanakbori - 7 1,190 117 111 4.72 55 166
3 GSECL Utran Expan 183 183 258 9.97 183 441
4 GSECL Dhuvaran - 7 29 29 61 10.61 31 92
5 GSECL Dhuvaran - 8 26 26 122 11.52 30 152
6 GSECL Ukai 2,465 340 606 4.10 140 746
7 GSECL Ukai Expan 2,332 2,332 337 3.69 860 1,197
GSECL Gandhinagar 1-4 1,899 233 466 4.31 100 566
8
(3-4)
9 GSECL Wanakbori 1-6 4,981 703 820 4.76 335 1,155
10 GSECL Sikka Expansion 1,000 279 546 5.71 159 706

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Total
Fixed Variable Total Power
S. Available Dispatch Variable
Name of the Station Charge Charges Purchase cost
No. Charge
(MU) (MU) Rs. Crore Rs./kWh Rs. Crore Rs. Crore
11 GSECL Kutch Lignite (1-3) 329 40 220 4.30 17 238
GSECL Kutch Lignite Exp 117 40 79 4.10 17 95
12
unit 4
13 GSECL Ukai Hydro 731 731 42 - - 42
14 GSECL Kadana Hydro 274 274 77 - - 77
GSECL Dhuvaran CCPP 128 128 239 9.97 128 366
15
III
16 GSECL BLTPS 1,324 1,324 511 3.78 500 1,011
17 GSECL Wanakbori - 8 4,318 4,318 702 4.04 1,744 2,446

GSECL - capacity
addition
1 GSECL Ukai 7 - - - 3.70 - -
GSECL Gandhinagar, - - - 4.43 - -
2
Sikka & Ukai

IPP’s
Gujarat State Energy 363 93 - 8.69 81 81
1
Generation
Gujarat State Energy 808 209 138 8.69 181 319
2
Generation Expansion
Gujarat Industries Power - - - - - -
3
Co Ltd (165 MW)
Gujarat Industries Power 1,222 1,222 138 2.69 328 466
4
Co Ltd (SLPP)
Gujarat Mineral 484 484 26 3.78 183 209
5
Development Corporation
Gujarat Industries Power 18 17 10 8.91 15 25
6
Co Ltd (145 MW)
Gujarat Industries Power 1,436 1,436 217 2.73 392 609
7
Co Ltd (SLPP - Exp)
8 GPPC Pipavav 815 418 239 9.91 414 652

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Total
Fixed Variable Total Power
S. Available Dispatch Variable
Name of the Station Charge Charges Purchase cost
No. Charge
(MU) (MU) Rs. Crore Rs./kWh Rs. Crore Rs. Crore
7 NTPC-Korba 2,591 2,591 156 1.60 416 571
8 NTPC-Korba -II 1,036 1,036 122 1.57 163 285
9 NTPC-Kawas 17 17 124 11.45 19 143
10 NTPC-Jhanor 24 24 207 11.61 28 236
11 NTPC-Sipat-I 3,929 3,929 601 1.55 608 1,209
12 NTPC-Sipat - II 2,138 2,138 264 1.61 344 607
13 NTPC-Kahlagaon - I 0 0 0 2.87 0 0
14 NTPC-Vindhyachal - IV 1,847 1,847 407 1.53 283 690
15 NTPC-Mauda 1,775 1,775 309 3.50 621 930
16 NTPC-Vindhyachal - V 722 722 176 1.63 118 294
17 NTPC-Mauda II 2,009 2,009 379 3.56 715 1,094
18 NTPC-Solapur 124 14 127 4.82 7 134
19 NTPC-Gadarwara 2,156 2,156 536 3.75 809 1,345
20 NTPC-LARA 1,295 1,295 274 3.82 495 769
21 NTPC - Khargone 1,619 1,056 495 4.06 429 924
22 NTPC-Farakka - 3 193 193 36 3.28 64 99
23 NTPC-Kahalgaon - II 882 882 112 3.16 279 391
24 NTPC-Farakka - 1 799 799 78 3.43 274 352
25 NTPC-Talcher - - - 1.81 - -
26 NTPC-Darlipalli - - - 1.16 - -
27 NTPC-Unchahar - 1 97 14 14 4.69 6 21
28 NTPC-Tanda - 2 1 1 0 3.64 0 0
29 NTPC-Barah 804 804 184 3.20 257 441
30 NTPC-Dadri 2,523 297 289 4.82 143 433
31 SSNNL 353 353 - 2.05 72 72
32 NTPC-NSTPS 326 326 213 2.65 87 300

Central Sector - capacity

addition
1 NHPC Subansiri 590 590 162 2.75 162 325
2 NHPC Rangit-IV 129 129 24 2.19 28 52
3 NHPC Pakaldul 439 439 96 2.14 94 190
4 NHPC Kiru 593 593 121 2.37 141 262
5 NTPC Talcher III 89 89 19 1.48 13 32

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Total
Fixed Variable Total Power
S. Available Dispatch Variable
Name of the Station Charge Charges Purchase cost
No. Charge
(MU) (MU) Rs. Crore Rs./kWh Rs. Crore Rs. Crore
6 NHPC Teesta IV 409 409 81 4.59 188 269
7 NHPC Ratle - - - 1.96 - -
8 NHPC Kwar - - - 2.22 - -
9 DVC Raghunathpur - - - 2.13 - -
10 DVC Koderma - - - 1.77 - -
11 NTPC Sipat-III - - - 1.40 - -
12 DVC Raghunathpur - addl - - - 3.70 - -
13 DVC Koderma - addl - - - 2.13 - -
14 DVC Durgapur - - - 1.90 - -
Ashvini-JV of NTPC and - - - 6.50 - -
15
NPCIL

Others
Captive Power - - - 6.61 - -
Renewable
1 Wind Farms 7,905 7,905 - 3.52 2,783 2,783
2 Solar 8,479 8,479 - 3.92 3,327 3,327
3 Small/Mini Hydel 69 69 - 3.69 25 25
4 Biomass 184 184 - 1.98 36 36
5 Waste to Energy 30 30 - 3.67 11 11

Renewable-new
1 Wind Farms - new 3,939 3,939 - 3.01 1,184 1,184
2 Solar - new 28,296 28,296 - 2.60 7,358 7,358
3 Hybrid 1,613 1,613 - 3.20 516 516
4 Bagasse 156 156 - 1.98 31 31
5 Waste to Energy - new 340 340 - 6.31 214 214
6 Battery Storage 1,309 1,309 - 3.82 499 499
7 Pump Storage 101 101 - 5.00 50 50

Competitive Bidding
Adani Power Mundra Ltd 8,935 736 662 4.37 322 984
1
(Bid 1)
Adani Power Mundra Ltd 9,188 757 741 4.11 311 1,051
2
(Bid 2)
3 Essar Power Gujarat Ltd 8,354 688 299 4.71 324 624

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Total
Fixed Variable Total Power
S. Available Dispatch Variable
Name of the Station Charge Charges Purchase cost
No. Charge
(MU) (MU) Rs. Crore Rs./kWh Rs. Crore Rs. Crore
4 ACB India Ltd 1,489 1,489 129 0.66 98 227
5 Tata Power Company Ltd 13,440 13,440 985 4.02 5,403 6,388
Medium Term Power - - - 1.79 - -
6
Purchase
7 Power Exchange - 7,389 - 6.02 4,450 4,450
8 Short term power purchase - 1,862 - 6.63 1,235 1,235
9
Power Exchange - GDAM - - - 4.87 - -
(unmet RPO)
Competitive Bidding-new
1 D B Power 2,175 2,175 597 1.67 363 960
Total 165,846 135,371 15,673 44,967 60,640

Table 5-55: Approved Power Purchase Cost for FY 2027-28

Total
Fixed Variable Total Power
S. Available Dispatch Variable
Name of the Station Charge Charges Purchase cost
No. Charge
(MU) (MU) Rs. Crore Rs./kWh Rs. Crore Rs. Crore
GSECL
1 GSECL Gandhinagar - 5 1,066 117 200 4.28 50 250
2 GSECL Wanakbori - 7 1,190 117 116 4.72 55 171
3 GSECL Utran Expan 183 183 259 10.19 187 446
4 GSECL Dhuvaran - 7 29 29 63 10.85 31 95
5 GSECL Dhuvaran - 8 26 26 106 11.77 31 137
6 GSECL Ukai 2,465 2,465 657 4.10 1,012 1,668
7 GSECL Ukai Expan 2,332 2,332 418 3.73 869 1,288
GSECL Gandhinagar 1-4
8
(3-4)
1,899 233 495 4.31 100 596
9 GSECL Wanakbori 1-6 4,981 703 995 4.76 335 1,329
10 GSECL Sikka Expansion 1,000 279 586 5.80 162 748
11 GSECL Kutch Lignite (1-3) 329 40 230 4.30 17 247
GSECL Kutch Lignite Exp
12
unit 4
117 117 79 4.10 48 127
13 GSECL Ukai Hydro 731 731 42 - - 42
14 GSECL Kadana Hydro 274 274 78 - - 78
GSECL Dhuvaran CCPP
15
III
128 128 234 10.19 131 365

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Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

Total
Fixed Variable Total Power
S. Available Dispatch Variable
Name of the Station Charge Charges Purchase cost
No. Charge
(MU) (MU) Rs. Crore Rs./kWh Rs. Crore Rs. Crore
16 GSECL BLTPS 1,324 1,324 504 3.78 501 1,005
17 GSECL Wanakbori - 8 4,318 4,318 744 4.08 1,762 2,507

GSECL - capacity
addition
1 GSECL Ukai 7 - - - 3.70 - -
GSECL Gandhinagar,
2
Sikka & Ukai
- - - 4.43 - -

Central Sector
1 NPC-Tarapur (1 & 2) 1,084 1,084 - 3.42 371 371
2 NPC-Tarapur (3 & 4) 1,857 1,857 - 3.42 635 635
3 NPC-Kakrapar 4,116 4,116 - 4.08 1,680 1,680
4 NTPC-Vindhyachal - I 1,698 1,698 170 1.68 285 455
5 NTPC-Vindhyachal - II 1,852 1,852 156 1.61 298 454
6 NTPC-Vindhyachal - III 2,188 2,188 250 1.60 351 601
7 NTPC-Korba 2,591 2,591 156 1.60 416 571
8 NTPC-Korba -II 1,036 1,036 122 1.57 163 285
9 NTPC-Kawas 17 17 124 11.45 19 143
10 NTPC-Jhanor 24 24 207 11.61 28 236
11 NTPC-Sipat-I 3,929 3,929 601 1.55 608 1,209

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Total
Fixed Variable Total Power
S. Available Dispatch Variable
Name of the Station Charge Charges Purchase cost
No. Charge
(MU) (MU) Rs. Crore Rs./kWh Rs. Crore Rs. Crore
12 NTPC-Sipat - II 2,138 2,138 264 1.61 344 607
13 NTPC-Kahlagaon - I 0 0 0 2.87 0 0
14 NTPC-Vindhyachal - IV 1,847 1,847 407 1.53 283 690
15 NTPC-Mauda 1,775 1,775 309 3.50 621 930
16 NTPC-Vindhyachal - V 722 722 176 1.63 118 294
17 NTPC-Mauda II 2,009 2,009 379 3.56 715 1,094
18 NTPC-Solapur 124 14 127 4.82 7 134
19 NTPC-Gadarwara 2,156 2,156 536 3.75 809 1,345
20 NTPC-LARA 1,295 1,295 274 3.82 495 769
21 NTPC - Khargone 1,619 1,619 495 4.06 657 1,152
22 NTPC-Farakka - 3 14 14 2 3.28 4 7
23 NTPC-Kahalgaon - II 882 882 112 3.16 279 391
24 NTPC-Farakka - 1 2 2 0 3.43 1 1
25 NTPC-Talcher - - - 1.81 - -
26 NTPC-Darlipalli - - - 1.16 - -
27 NTPC-Unchahar - 1 - - - 4.69 - -
28 NTPC-Tanda - 2 1 1 0 3.64 0 0
29 NTPC-Barah 130 130 30 3.20 42 71
30 NTPC-Dadri - - - 4.82 - -
31 SSNNL 353 353 - 2.05 72 72
32 NTPC-NSTPS 26 26 17 2.65 7 24

Central Sector - capacity

addition
1 NHPC Subansiri 590 590 162 2.75 162 325
2 NHPC Rangit-IV 129 129 24 2.19 28 52
3 NHPC Pakaldul 439 439 63 2.14 94 157
4 NHPC Kiru 593 593 120 2.37 141 260
5 NTPC Talcher III 1,072 1,072 227 1.48 159 386
6 NHPC Teesta IV 614 614 120 4.59 282 402
7 NHPC Ratle 137 137 24 1.96 27 51
8 NHPC Kwar 87 87 17 2.22 19 37
9 DVC Raghunathpur 174 174 34 2.13 37 72
10 DVC Koderma 44 44 9 1.77 8 16

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Total
Fixed Variable Total Power
S. Available Dispatch Variable
Name of the Station Charge Charges Purchase cost
No. Charge
(MU) (MU) Rs. Crore Rs./kWh Rs. Crore Rs. Crore
11 NTPC Sipat-III - - - 1.40 - -
12 DVC Raghunathpur - addl - - - 3.70 - -
13 DVC Koderma - addl - - - 2.13 - -
14 DVC Durgapur - - - 1.90 - -
Ashvini-JV of NTPC and
15
NPCIL
- - - 6.50 - -

Others
Captive Power - - - 6.61 - -
Renewable
1 Wind Farms 7,302 7,302 - 3.52 2,571 2,571
2 Solar 8,479 8,479 - 3.92 3,327 3,327
3 Small/Mini Hydel 69 69 - 3.69 25 25
4 Biomass 184 184 - 1.98 36 36
5 Waste to Energy 30 30 - 3.67 11 11

Renewable-new
1 Wind Farms - new 4,077 4,077 - 3.02 1,230 1,230
2 Solar - new 31,570 31,570 - 2.61 8,230 8,230
3 Hybrid 2,978 2,978 - 3.22 959 959
4 Bagasse 196 196 - 1.98 39 39
5 Waste to Energy - new 341 341 - 6.31 215 215
6 Battery Storage 1,373 1,373 - 3.77 518 518
7 Pump Storage 101 101 - 5.00 51 51

Competitive Bidding
Adani Power Mundra Ltd
1
(Bid 1)
8,935 736 662 4.37 322 984
Adani Power Mundra Ltd
2
(Bid 2)
9,188 2,765 741 4.11 1,136 1,876
3 Essar Power Gujarat Ltd 8,354 688 299 4.71 324 624
4 ACB India Ltd 1,489 1,489 129 0.66 98 227
5 Tata Power Company Ltd 13,440 13,440 985 4.02 5,403 6,388
Medium Term Power
6
Purchase
- - - 1.79 - -
7 Power Exchange - 4,926 - 6.02 2,967 2,967

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Total
Fixed Variable Total Power
S. Available Dispatch Variable
Name of the Station Charge Charges Purchase cost
No. Charge
(MU) (MU) Rs. Crore Rs./kWh Rs. Crore Rs. Crore
8 Short term power purchase - 1,242 - 6.63 823 823
Power Exchange - GDAM
9
(unmet RPO)
- - - 4.87 - -
Competitive Bidding-new
1 D B Power 2,175 2,175 597 1.67 363 960
Total 167,183 140,707 15,706 45,796 61,501

Table 5-56: Approved Power Purchase Cost for FY 2028-29

Total Total Power

Fixed Variable
S. Available Dispatch Variable Purchase
Name of the Station Charge Charges
No. Charge cost
(MU) (MU) Rs. Crore Rs./kWh Rs. Crore Rs. Crore
GSECL

1 GSECL Gandhinagar - 5
1,066 117 160 4.28 50 209
2 GSECL Wanakbori - 7
1,190 117 145 4.72 55 200
3 GSECL Utran Expan
183 183 262 10.41 191 453
4 GSECL Dhuvaran - 7
29 29 65 11.09 32 97
5 GSECL Dhuvaran - 8
26 26 81 12.03 31 112
6 GSECL Ukai
2,465 2,465 662 4.10 1,012 1,674
7 GSECL Ukai Expan
2,332 2,332 455 3.73 869 1,324
GSECL Gandhinagar 1-4
8
(3-4) 1,899 233 624 4.31 100 724
9 GSECL Wanakbori 1-6
4,981 703 1,117 4.76 335 1,451
10 GSECL Sikka Expansion
1,000 279 551 5.79 161 713
11 GSECL Kutch Lignite (1-3)
329 40 239 4.30 17 256

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Total Total Power

Fixed Variable
S. Available Dispatch Variable Purchase
Name of the Station Charge Charges
No. Charge cost
(MU) (MU) Rs. Crore Rs./kWh Rs. Crore Rs. Crore
GSECL Kutch Lignite Exp
12
unit 4 117 117 80 4.10 48 128
13 GSECL Ukai Hydro
731 731 43 - - 43
14 GSECL Kadana Hydro
274 274 79 - - 79
GSECL Dhuvaran CCPP
15
III 128 128 199 10.41 133 332
16 GSECL BLTPS
1,324 1,324 501 3.78 500 1,002
17 GSECL Wanakbori - 8
4,318 4,318 765 4.08 1,762 2,527

GSECL - capacity
addition

1 GSECL Ukai 7
- - - 3.70 - -
GSECL Gandhinagar,
2
Sikka & Ukai - - - 4.43 - -

IPP’s
Gujarat State Energy
1
Generation 363 93 - 8.69 81 81
Gujarat State Energy
2
Generation Expansion 808 209 138 8.69 181 319
Gujarat Industries Power
3
Co Ltd (165 MW) - - - - - -
Gujarat Industries Power
4
Co Ltd (SLPP) 1,222 1,222 138 2.69 328 466
Gujarat Mineral
5
Development Corporation 484 484 26 3.78 183 209
Gujarat Industries Power
6
Co Ltd (145 MW) 18 17 10 8.91 15 25
Gujarat Industries Power
7
Co Ltd (SLPP - Exp) 1,436 1,436 217 2.73 392 609
8 GPPC Pipavav
815 418 239 9.91 414 652

Central Sector

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Total Total Power

Fixed Variable
S. Available Dispatch Variable Purchase
Name of the Station Charge Charges
No. Charge cost
(MU) (MU) Rs. Crore Rs./kWh Rs. Crore Rs. Crore
1 NPC-Tarapur (1 & 2) 1,084 1,084 - 3.42 371 371
2 NPC-Tarapur (3 & 4) 1,857 1,857 - 3.42 635 635
3 NPC-Kakrapar 4,116 4,116 - 4.08 1,680 1,680
4 NTPC-Vindhyachal - I 1,698 1,698 170 1.68 285 455
5 NTPC-Vindhyachal - II 1,852 1,852 156 1.61 298 454
6 NTPC-Vindhyachal - III 2,188 2,188 250 1.60 351 601
7 NTPC-Korba 2,591 2,591 156 1.60 416 571
8 NTPC-Korba -II 1,036 1,036 122 1.57 163 285
9 NTPC-Kawas 17 17 124 11.45 19 143
10 NTPC-Jhanor 24 24 207 11.61 28 236
11 NTPC-Sipat-I 3,929 3,929 601 1.55 608 1,209
12 NTPC-Sipat - II 2,138 2,138 264 1.61 344 607
13 NTPC-Kahlagaon - I 0 0 0 2.87 0 0
14 NTPC-Vindhyachal - IV 1,847 1,847 407 1.53 283 690
15 NTPC-Mauda 1,775 1,775 309 3.50 621 930
16 NTPC-Vindhyachal - V 722 722 176 1.63 118 294
17 NTPC-Mauda II 2,009 2,009 379 3.56 715 1,094
18 NTPC-Solapur 124 14 127 4.82 7 134
19 NTPC-Gadarwara 2,156 2,156 536 3.75 809 1,345
20 NTPC-LARA 1,295 1,295 274 3.82 495 769
21 NTPC - Khargone 1,619 1,619 495 4.06 657 1,152
22 NTPC-Farakka - 3 14 14 2 3.28 4 7
23 NTPC-Kahalgaon - II 882 882 112 3.16 279 391
24 NTPC-Farakka - 1 2 2 0 3.43 1 1
25 NTPC-Talcher - - - 1.81 - -
26 NTPC-Darlipalli - - - 1.16 - -
27 NTPC-Unchahar - 1 - - - 4.69 - -
28 NTPC-Tanda - 2 1 1 0 3.64 0 0
29 NTPC-Barah 130 130 30 3.20 42 71
30 NTPC-Dadri - - - 4.82 - -
31 SSNNL 353 353 - 2.05 72 72
32 NTPC-NSTPS 26 26 17 2.65 7 24

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Total Total Power

Fixed Variable
S. Available Dispatch Variable Purchase
Name of the Station Charge Charges
No. Charge cost
(MU) (MU) Rs. Crore Rs./kWh Rs. Crore Rs. Crore
Central Sector - capacity
addition
1 NHPC Subansiri 590 590 162 2.75 162 325
2 NHPC Rangit-IV 129 129 24 2.19 28 52
3 NHPC Pakaldul 439 439 92 2.14 94 186
4 NHPC Kiru 593 593 118 2.37 141 259
5 NTPC Talcher III 1,072 1,072 227 1.48 159 386
6 NHPC Teesta IV 614 614 118 4.59 282 400
7 NHPC Ratle 412 412 72 1.96 81 153
8 NHPC Kwar 262 262 51 2.22 58 109
9 DVC Raghunathpur 2,089 2,089 414 2.13 445 858
10 DVC Koderma 522 522 104 1.77 92 197
11 NTPC Sipat-III 464 464 100 1.40 65 165
12 DVC Raghunathpur - addl 174 174 34 3.70 64 99
13 DVC Koderma - addl 44 44 9 2.13 9 18
14 DVC Durgapur 29 29 6 1.90 6 12
Ashvini-JV of NTPC and
15
NPCIL
- - - 6.50 - -

Others
Captive Power - - - 6.61 - -
Renewable
1 Wind Farms 6,698 6,698 - 3.52 2,358 2,358
2 Solar 8,479 8,479 - 3.92 3,327 3,327
3 Small/Mini Hydel 69 69 - 3.69 25 25
4 Biomass 184 184 - 1.98 36 36
5 Waste to Energy 30 30 - 3.67 11 11

Renewable-new
1 Wind Farms - new 4,066 4,066 - 3.02 1,227 1,227
2 Solar - new 34,351 34,351 - 2.61 8,953 8,953
3 Hybrid 2,970 2,970 - 3.22 956 956
4 Bagasse 195 195 - 1.98 39 39
5 Waste to Energy - new 340 340 - 6.31 214 214
6 Battery Storage 1,369 1,369 - 3.78 518 518

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Total Total Power

Fixed Variable
S. Available Dispatch Variable Purchase
Name of the Station Charge Charges
No. Charge cost
(MU) (MU) Rs. Crore Rs./kWh Rs. Crore Rs. Crore
7 Pump Storage 101 101 - 5.00 50 50

Competitive Bidding
Adani Power Mundra Ltd
1
(Bid 1)
8,935 736 662 4.37 322 984
Adani Power Mundra Ltd
2
(Bid 2)
9,188 2,684 741 4.11 1,102 1,843
3 Essar Power Gujarat Ltd 8,354 688 299 4.71 324 624
4 ACB India Ltd 1,489 1,489 129 0.66 98 227
5 Tata Power Company Ltd 13,440 13,440 985 4.02 5,403 6,388
Medium Term Power
6
Purchase
- - - 1.79 - -
7 Power Exchange - 4,926 - 6.02 2,967 2,967
8 Short term power purchase - 1,242 - 6.63 823 823
Power Exchange - GDAM
9
(unmet RPO) - - - 4.87 - -
Competitive Bidding-new
1 D B Power 2,175 2,175 597 1.67 363 960
Total 172,889 146,331 16,657 47,003 63,660

Table 5-57: Approved Power Purchase Cost for FY 2029-30

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Total
Fixed Variable Total Power
S. Available Dispatch Variable
Name of the Station Charge Charges Purchase cost
No. Charge
(MU) (MU) Rs. Crore Rs./kWh Rs. Crore Rs. Crore
10 GSECL Sikka Expansion 1,000 279 550 5.76 161 711
11 GSECL Kutch Lignite (1-3) 329 40 254 4.30 17 271
GSECL Kutch Lignite Exp
12
unit 4
117 117 81 4.10 48 129
13 GSECL Ukai Hydro 731 731 44 - - 44
14 GSECL Kadana Hydro 274 274 280 - - 280
GSECL Dhuvaran CCPP
15
III
128 128 197 10.64 136 334
16 GSECL BLTPS 1,324 1,324 506 3.78 500 1,007
17 GSECL Wanakbori - 8 4,318 4,318 752 4.08 1,762 2,514

GSECL - capacity
addition
1 GSECL Ukai 7 - - - 3.70 - -
GSECL Gandhinagar,
2
Sikka & Ukai
- - - 4.43 - -

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Total
Fixed Variable Total Power
S. Available Dispatch Variable
Name of the Station Charge Charges Purchase cost
No. Charge
(MU) (MU) Rs. Crore Rs./kWh Rs. Crore Rs. Crore
6 NTPC-Vindhyachal - III 2,188 2,188 250 1.60 351 601
7 NTPC-Korba 2,591 2,591 156 1.60 416 571
8 NTPC-Korba -II 1,036 1,036 122 1.57 163 285
9 NTPC-Kawas 17 17 124 11.45 19 143
10 NTPC-Jhanor 24 24 207 11.61 28 236
11 NTPC-Sipat-I 3,929 3,929 601 1.55 608 1,209
12 NTPC-Sipat - II 2,138 2,138 264 1.61 344 607
13 NTPC-Kahlagaon - I 0 0 0 2.87 0 0
14 NTPC-Vindhyachal - IV 1,847 1,847 407 1.53 283 690
15 NTPC-Mauda 1,775 1,775 309 3.50 621 930
16 NTPC-Vindhyachal - V 722 722 176 1.63 118 294
17 NTPC-Mauda II 2,009 2,009 379 3.56 715 1,094
18 NTPC-Solapur 124 14 127 4.82 7 134
19 NTPC-Gadarwara 2,156 2,156 536 3.75 809 1,345
20 NTPC-LARA 1,295 1,295 274 3.82 495 769
21 NTPC - Khargone 1,619 1,619 495 4.06 657 1,152
22 NTPC-Farakka - 3 14 14 2 3.28 4 7
23 NTPC-Kahalgaon - II 882 882 112 3.16 279 391
24 NTPC-Farakka - 1 2 2 0 3.43 1 1
25 NTPC-Talcher - - - 1.81 - -
26 NTPC-Darlipalli - - - 1.16 - -
27 NTPC-Unchahar - 1 - - - 4.69 - -
28 NTPC-Tanda - 2 1 1 0 3.64 0 0
29 NTPC-Barah 130 130 30 3.20 42 71
30 NTPC-Dadri - - - 4.82 - -
31 SSNNL 353 353 - 2.05 72 72
32 NTPC-NSTPS 26 26 17 2.65 7 24

Central Sector - capacity

addition
1 NHPC Subansiri 590 590 162 2.75 162 325
2 NHPC Rangit-IV 129 129 24 2.19 28 52
3 NHPC Pakaldul 439 439 89 2.14 94 183
4 NHPC Kiru 593 593 117 2.37 141 257

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Total
Fixed Variable Total Power
S. Available Dispatch Variable
Name of the Station Charge Charges Purchase cost
No. Charge
(MU) (MU) Rs. Crore Rs./kWh Rs. Crore Rs. Crore
5 NTPC Talcher III 1,072 1,072 227 1.48 159 386
6 NHPC Teesta IV 614 614 116 4.59 282 398
7 NHPC Ratle 412 412 71 1.96 81 152
8 NHPC Kwar 262 262 50 2.22 58 108
9 DVC Raghunathpur 2,089 2,089 414 2.13 445 858
10 DVC Koderma 522 522 104 1.77 92 197
11 NTPC Sipat-III 5,570 5,570 1,197 1.40 780 1,977
12 DVC Raghunathpur - addl 2,089 2,089 414 3.70 773 1,186
13 DVC Koderma - addl 522 522 104 2.13 111 216
14 DVC Durgapur 348 348 75 1.90 66 141
Ashvini-JV of NTPC and
15
NPCIL
113 113 - 6.50 73 73

Others
Captive Power - - - 6.61 - -
Renewable
1 Wind Farms 6,512 6,512 - 3.52 2,292 2,292
2 Solar 8,479 8,479 - 3.92 3,327 3,327
3 Small/Mini Hydel 69 69 - 3.69 25 25
4 Biomass 184 184 - 1.98 36 36
5 Waste to Energy 30 30 - 3.67 11 11

Competitive Bidding
Adani Power Mundra Ltd
1
(Bid 1)
8,935 736 662 4.37 322 984
Adani Power Mundra Ltd
2
(Bid 2)
9,188 757 741 4.11 311 1,051

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Total
Fixed Variable Total Power
S. Available Dispatch Variable
Name of the Station Charge Charges Purchase cost
No. Charge
(MU) (MU) Rs. Crore Rs./kWh Rs. Crore Rs. Crore
3 Essar Power Gujarat Ltd 8,354 688 299 4.71 324 624
4 ACB India Ltd 1,489 1,489 129 0.66 98 227
5 Tata Power Company Ltd 13,440 13,440 985 4.02 5,403 6,388
Medium Term Power
6
Purchase
- - - 1.79 - -
7 Power Exchange - 4,926 - 6.02 2,967 2,967
8 Short term power purchase - 1,242 - 6.63 823 823
Power Exchange - GDAM
9
(unmet RPO)
- 1,874 - 4.87 912 912
Competitive Bidding-new
1 D B Power 2,175 2,175 597 1.67 363 960
Total 180,633 152,264 18,798 48,003 66,801

The Commission has considered IEX market prices during FY 2023-24 as submitted by
GUVNL/Discoms for determining rate of power to be allowed for Exchange Purchase and Short-
Term Purchase.

The Commission has considered the dispatchable and available energy from the sources considered
by the petitioner to arrive at projection of Power Purchase Cost for MYT Control Period, however,
the petitioner shall follow the Merit Order Principles and prudent practices while availing power
from different sources.

5.10.6 Transmission and other costs

The total power purchase cost projected for Discoms for MYT Control Period also consists of
Transmission Charges, GUVNL charges and SLDC Fees and Charges in addition to the above-
mentioned fixed cost and variable charges. The details of such charges are as under:

Transmission Charges
• The transmission charges of GETCO have been considered at the same percentage of the
Transmission Charges approved in the Tariff Order of GETCO for MYT Control Period in Case

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No. 2419 of 2024.

• PGCIL charges for FY 2024-25 are considered based on actual payment made in latest month of
FY 2023-24.
• SLDC Fees and Charges have been considered at the same percentage of the SLDC Charges
approved in the Tariff Order of SLDC for MYT Control Period in Case No. 2415 of 2025.
Based on the transmission costs of PGCIL, GETCO and SLDC, the total transmission costs to be
included in the overall power purchase costs is shown in the Table below:

Table 5-58: Approved Transmission Charges for MYT Control Period (Rs. Crore)

S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
1 PGCIL Charges 3,489.28 3,663.74 3,846.93 4,039.28 4,241.24
2 NLDC/RLDC Charges 9.85 10.34 10.86 11.40 11.97
Annual Transmission
3 5,001.10 5,785.28 6,972.86 8,015.34 8,759.25
Charges of GETCO
4 SLDC Charges 33.58 47.35 65.31 69.31 70.50

GUVNL Cost

Discoms have submitted that GUVNL is charging Rs. 0.04 for every transaction of one unit of energy
for providing the services of procuring the power from various sources and supplying to DISCOMs,
trading of surplus power on behalf of DISCOMs, the overall coordination between the subsidiary
companies and also undertaking the function of raising and managing the overall loan portfolio of
GUVNL and its subsidiaries.

The Commission considers the charges of Rs.0.04/unit to handle power procurement and supply,
etc., as reasonable and approves the GUVNL costs, as given below, based on the energy projected to
be handled during the MYT Control Period:

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Table 5-59: Approved GUVNL Cost for MYT Control Period

FY FY FY FY FY
Particulars
2025-26 2026-27 2027-28 2028-29 2029-30
Energy handled (MUs) 1,31,927 1,35,371 1,40,707 1,46,331 1,52,264
GUVNL Cost @ 4 Paisa/unit
527.71 541.48 562.83 585.33 609.06
(Rs. Crore)

5.10.7 Summary of Power Purchase Cost

Fixed Cost

The fixed costs, due to the capacity contracted by GUVNL, are passed on to DISCOMs, as detailed
in the table below:

Table 5-60: Approved Fixed Cost for MYT Control Period (Rs. Crore)
GETCO PGCIL NLDC/RLDC SLDC Total Fixed
Year Fixed cost
Cost Charges Charges Charges Cost
FY 2025-26 16,027.97 5,001.10 3,489.28 9.85 33.58 24,561.78
FY 2026-27 15,672.66 5,785.28 3,663.74 10.34 47.35 25179.38
FY 2027-28 15,705.62 6,972.86 3,846.93 10.86 65.31 26,601.57
FY 2028-29 16,656.55 8,015.34 4,039.28 11.40 69.31 28,791.88
FY 2029-30 18,797.51 8,759.25 4,241.24 11.97 70.50 31,880.47

Variable Cost

The Commission has approved variable cost for DISCOMs for MYT Control Period, as detailed in
the table below:

Table 5-61: Approved Variable Cost for MYT Control period (Rs. Crore)
Total variable Variable Cost
Year Variable cost GUVNL Cost Despatched
Cost per Unit
Rs. Crore Rs. Crore Rs. Crore MUs Rs./kWh
FY 2025-26 44,961.05 527.71 45,488.76 131,927.37 3.45

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FY 2026-27 44,967.01 541.48 45,508.49 135,371.16 3.36

FY 2027-28 45,795.50 562.83 46,358.33 140,706.95 3.29
FY 2028-29 47,003.05 585.33 47,588.37 146,331.36 3.25
FY 2029-30 48,003.04 609.06 48,612.10 152,264.02 3.19

5.10.8 Total Power Purchase Cost

Based on the approved Fixed Cost and Variable Cost as shown above, the Commission has approved
Total Power Purchase Cost for the MYT Control Period, as detailed in the table below:

Table 5-62: Approved Total Power Purchase Cost for MYT Control Period (Rs. Crore)
Year Fixed cost Variable Cost Total Power Purchase Cost
FY 2025-26 24,561.78 45,488.76 70,050.55
FY 2026-27 25,179.38 45,508.49 70,687.87
FY 2027-28 26,601.57 46,358.33 72,959.90
FY 2028-29 28,791.88 47,588.37 76,380.25
FY 2029-30 31,880.47 48,612.10 80,492.57

5.10.9 Allocation of Power Purchase Cost under BST mechanism

Power Purchase cost worked out as above for MYT Control Period is allocated amongst the four
DISCOMs based on the methodology adopted by the Commission in the previous Tariff Orders by
working out revenue available for purchase of power by excluding Non-Tariff Income, Agricultural
Subsidy and expenses other than power purchase cost, as detailed in the tables below:

Table 5-63: Approved Allocation of Power Purchase Cost for FY 2025-26 (Rs. Crore)
S. No. Particulars DGVCL MGVCL PGVCL UGVCL
1 Sales (MUs) 33,213.33 14,103.39 40,048.65 31,009.70
2 Revenue from Existing Tariff 16,718.97 6,708.72 16,881.15 11,508.29
3 Revenue from FPPAS @ Rs. 2.69/unit 8,934.39 3,793.81 10,773.09 8,341.61
4 Other Income (Consumer Related) 684.06 154.85 380.87 269.05
5 Agricultural Subsidy 53.19 69.86 450.64 526.31

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6 Total Revenue (2 to 5) 26,390.60 10,727.24 28,485.75 20,645.26

7 Expense other than Power Purchase (504.54) 1,087.43 3,223.98 1,653.85
8 Power Purchase Cost of Local purchase 47.63 73.86 433.54 199.95
Amount Available with Discom for Power 26,847.51 9,565.95 24,828.23 18,791.45
9
purchase from GUVNL (6 - 7 - 8)

Table 5-64: Approved Total Revenue (Gap) / Surplus for FY 2025-26 (Rs. Crore)
S. No. Particulars FY 2025-26
1 Power Purchase Cost of GUVNL 70,050.55
2 Aggregate Amount available for power purchase from GUVNL 80,033.13
3 Revenue (Gap)/Surplus 9,982.59

Table 5-65: Approved Bulk Supply Tariff for FY 2025-26 (Rs. Crore)

S. FY 2025-26
Details
No. DGVCL MGVCL PGVCL UGVCL

1 Revenue (Gap)/Surplus 9,982.59

Ratio of allocation of Revenue (Gap) / 26.70% 11.75% 35.84% 25.71%
2
Surplus
Revenue (Gap)/ Surplus allocation (Rs. 2,665.12 1,173.19 3,577.32 2,566.95
3
Crore)
Amount Available with Discom for 26,847.51 9,565.95 24,828.23 18,791.45
4 Power purchase from GUVNL (Rs.
Crore)
Power purchase cost of GUVNL (Rs. 24,182.39 8,392.75 21,250.90 16,224.50
5
Crore)

Power purchase cost of Local purchase 47.63 73.86 433.54 199.95

6
(Rs. Crore)

Power purchase cost of DISCOM (Rs. 24,230.02 8,466.61 21,684.44 16,424.45

7
Crore)

8 Energy Purchase in DISCOM (MU) 35,418.02 15,803.06 48,775.23 34,617.57

9 Bulk Supply Tariff (Rs./kWh) 6.84 5.36 4.45 4.74

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Table 5-66: Approved Allocation of Power Purchase Cost for FY 2026-27 (Rs. Crore)
S. No. Particulars DGVCL MGVCL PGVCL UGVCL
1 Sales (MUs) 35,224.88 14,725.06 41,585.82 32,333.72
2 Revenue from Existing Tariff 17,758.11 7,018.18 17,657.07 12,107.52
3 Revenue from FPPAS @ Rs. 2.57/unit 9,052.79 3,784.34 10,687.55 8,309.77
4 Other Income (Consumer Related) 684.06 154.85 380.87 269.05
5 Agricultural Subsidy 53.19 69.86 450.64 526.31
6 Total Revenue (2 to 5) 27,548.15 11,027.23 29,176.13 21,212.65
7 Expense other than Power Purchase 2,695.69 2,268.17 4,594.79 2,730.85
8 Power Purchase Cost of Local purchase 79.95 121.43 714.73 302.44
Amount Available with Discom for Power 24,772.50 8,637.63 23,866.60 18,179.36
9
purchase from GUVNL (6 - 7 - 8)

Table 5-67: Approved Total Revenue (Gap) / Surplus for FY 2026-27 (Rs. Crore)
S. No. Particulars FY 2026-27
1 Power Purchase Cost of GUVNL 70,687.87
2 Aggregate Amount available for power purchase from GUVNL 75,456.09
3 Revenue (Gap)/Surplus 4,768.22

Table 5-68: Approved Bulk Supply Tariff for FY 2026-27 (Rs. Crore)

S. FY 2026-27
Details
No. DGVCL MGVCL PGVCL UGVCL

1 Revenue (Gap)/Surplus 4,768.22

Ratio of allocation of Revenue (Gap) / 27.52% 11.77% 34.94% 25.77%
2
Surplus

Revenue (Gap)/ Surplus allocation (Rs. 1,312.20 561.39 1,666.01 1,228.61

3
Crore)

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S. FY 2026-27
Details
No. DGVCL MGVCL PGVCL UGVCL
Amount Available with Discom for 24,772.50 8,637.63 23,866.60 18,179.36
4 Power purchase from GUVNL (Rs.
Crore)
Power purchase cost of GUVNL (Rs. 23,460.30 8,076.24 22,200.59 16,950.75
5
Crore)

Power purchase cost of Local purchase 79.95 121.43 714.73 302.44

6
(Rs. Crore)

Power purchase cost of DISCOM (Rs. 23,540.25 8,197.66 22,915.32 17,253.19

7
Crore)

8 Energy Purchase in DISCOM (MU) 37,558.04 16,395.12 49,734.18 35,915.59

9 Bulk Supply Tariff (Rs./kWh) 6.27 5.00 4.61 4.80

Table 5-69: Approved Allocation of Power Purchase Cost for FY 2027-28 (Rs. Crore)
S. No. Particulars DGVCL MGVCL PGVCL UGVCL
1 Sales (MUs) 37,369.44 15,367.16 43,191.23 33,722.92
2 Revenue from Existing Tariff 18,867.09 7,342.14 18,471.18 12,750.24
3 Revenue from FPPAS @ Rs. 2.54/unit 9,491.84 3,903.26 10,970.57 8,565.62
4 Other Income (Consumer Related) 684.06 154.85 380.87 269.05
5 Agricultural Subsidy 53.19 69.86 450.64 526.31
6 Total Revenue (2 to 5) 29,096.17 11,470.11 30,273.25 22,111.23
7 Expense other than Power Purchase 3,115.89 2,548.03 5,488.93 3,007.85
8 Power Purchase Cost of Local purchase 79.95 121.43 714.73 302.44
Amount Available with Discom for Power 25,900.33 8,800.65 24,069.60 18,800.94
9
purchase from GUVNL (6 - 7 - 8)

Table 5-70: Approved Total Revenue (Gap) / Surplus for FY 2027-28 (Rs. Crore)
S. No. Particulars FY 2027-28
1 Power Purchase Cost of GUVNL 72,959.90

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S. No. Particulars FY 2027-28

2 Aggregate Amount available for power purchase from GUVNL 77,571.51
3 Revenue (Gap)/Surplus 4,611.61

Table 5-71: Approved Bulk Supply Tariff for FY 2027-28 (Rs. Crore)

S. FY 2027-28
Details
No. DGVCL MGVCL PGVCL UGVCL

1 Revenue (Gap)/Surplus 4,611.61

Ratio of allocation of Revenue (Gap) / 28.10% 11.76% 34.37% 25.77%
2
Surplus
Revenue (Gap)/ Surplus allocation (Rs. 1,295.95 542.55 1,584.79 1,188.32
3
Crore)
Amount Available with Discom for 25,900.33 8,800.65 24,069.60 18,800.94
4 Power purchase from GUVNL (Rs.
Crore)
Power purchase cost of GUVNL (Rs. 24,604.38 8,258.10 22,484.81 17,612.62
5
Crore)
Power purchase cost of Local purchase 79.95 121.43 714.73 302.44
6
(Rs. Crore)

Power purchase cost of DISCOM (Rs. 4,684.33 8,379.53 23,199.54 17,915.06

7
Crore)

8 Energy Purchase in DISCOM (MU) 39,845.62 17,011.04 50,789.74 37,292.31

9 Bulk Supply Tariff (Rs./kWh) 6.19 4.93 4.57 4.80

Table 5-72: Approved Allocation of Power Purchase Cost for FY 2028-29 (Rs. Crore)
S. No. Particulars DGVCL MGVCL PGVCL UGVCL
1 Sales (MUs) 39,656.67 16,039.53 44,868.25 35,179.59
2 Revenue from Existing Tariff 20,050.99 7,682.25 19,325.45 13,431.09
3 Revenue from FPPAS @ Rs. 2.58/unit 10,231.42 4,138.20 11,576.01 9,076.33
4 Other Income (Consumer Related) 684.06 154.85 380.87 269.05

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S. No. Particulars DGVCL MGVCL PGVCL UGVCL

5 Agricultural Subsidy 53.19 69.86 450.64 526.31
6 Total Revenue (2 to 5) 31,019.66 12,045.16 31,732.96 23,302.79
7 Expense other than Power Purchase 3,477.24 2,844.54 6,061.99 3,294.71
8 Power Purchase Cost of Local purchase 79.95 121.43 714.73 302.44
Amount Available with Discom for Power 27,462.46 9,079.20 24,956.24 19,705.64
9
purchase from GUVNL (6 - 7 - 8)

Table 5-73: Approved Total Revenue (Gap) / Surplus for FY 2028-29 (Rs. Crore)
S. No. Particulars FY 2028-29
1 Power Purchase Cost of GUVNL 76,380.25
2 Aggregate Amount available for power purchase from GUVNL 81,203.54
3 Revenue (Gap)/Surplus 4,823.29

Table 5-74: Approved Bulk Supply Tariff for FY 2028-29 (Rs. Crore)

S. FY 2028-29
Details
No. DGVCL MGVCL PGVCL UGVCL

1 Revenue (Gap)/Surplus 4,823.29

Ratio of allocation of Revenue (Gap) / 28.69% 11.75% 33.80% 25.76%
2
Surplus
Revenue (Gap)/ Surplus allocation (Rs. 1,383.76 566.81 1,630.20 1,242.52
3
Crore)
Amount Available with Discom for 27,462.46 9,079.20 24,956.24 19,705.64
4 Power purchase from GUVNL (Rs.
Crore)
Power purchase cost of GUVNL (Rs. 26,078.70 8,512.39 23,326.04 18,463.12
5
Crore)

Power purchase cost of Local purchase 79.95 121.43 714.73 302.44

6
(Rs. Crore)

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S. FY 2028-29
Details
No. DGVCL MGVCL PGVCL UGVCL

Power purchase cost of DISCOM (Rs. 26,158.66 8,633.81 24,040.77 18,765.56

7
Crore)

8 Energy Purchase in DISCOM (MU) 42,285.39 17,653.18 51,893.48 38,731.08

9 Bulk Supply Tariff (Rs./kWh) 6.19 4.89 4.63 4.85

Table 5-75: Approved Allocation of Power Purchase Cost for FY 2029-30 (Rs. Crore)
S. No. Particulars DGVCL MGVCL PGVCL UGVCL
1 Sales (MUs) 42,096.98 16,743.83 46,620.44 36,709.45
2 Revenue from Existing Tariff 21,315.29 8,039.37 20,221.94 14,152.71
3 Revenue from FPPAS @ Rs. 2.69/unit 11,197.80 4,453.86 12,401.04 9,764.71
4 Other Income (Consumer Related) 684.06 154.85 380.87 269.05
5 Agricultural Subsidy 53.19 69.86 450.64 526.31
6 Total Revenue (2 to 5) 33,250.33 12,717.94 33,454.48 24,712.79
7 Expense other than Power Purchase 3,856.46 3,126.42 6,636.38 3,575.77
8 Power Purchase Cost of Local purchase 79.95 121.43 714.73 302.44
Amount Available with Discom for Power 29,313.91 9,470.09 26,103.37 20,834.58
9
purchase from GUVNL (6 - 7 - 8)

Table 5-76: Approved Total Revenue (Gap) / Surplus for FY 2029-30 (Rs. Crore)
S. No. Particulars FY 2029-30
1 Power Purchase Cost of GUVNL 80,492.57
2 Aggregate Amount available for power purchase from GUVNL 85,721.95
3 Revenue (Gap)/Surplus 5,229.38

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Table 5-77: Approved Bulk Supply Tariff for FY 2029-30 (Rs. Crore)

S. FY 2029-30
Details
No. DGVCL MGVCL PGVCL UGVCL

1 Revenue (Gap)/Surplus 5,229.38

Ratio of allocation of Revenue (Gap) / 29.28% 11.73% 33.24% 25.75%
2
Surplus
Revenue (Gap)/ Surplus allocation (Rs. 1,531.21 613.59 1,738.21 1,346.37
3
Crore)
Amount Available with Discom for 29,313.91 9,470.09 26,103.37 20,834.58
4 Power purchase from GUVNL (Rs.
Crore)

Power purchase cost of GUVNL (Rs. 27,782.70 8,856.50 24,365.16 19,488.20

5
Crore)
Power purchase cost of Local purchase 79.95 121.43 714.73 302.44
6
(Rs. Crore)

Power purchase cost of DISCOM (Rs. 27,862.66 8,977.93 25,079.89 19,790.65

7
Crore)

8 Energy Purchase in DISCOM (MU) 44,888.45 18,322.89 53,047.10 40,237.35

9 Bulk Supply Tariff (Rs./kWh) 6.21 4.90 4.73 4.92

5.11 Capital Expenditure

PGVCL has claimed capital expenditure for MYT Control Period, as detailed in the Table below:

Table 5-78: Capital Expenditure Plan projected for MYT Control Period (Rs. Crore)

S. FY FY FY FY FY
Particulars
No 2025-26 2026-27 2027-28 2028-29 2029-30

Particulars FY 2025-26 FY 2026- FY 2027- FY 2028- FY 2029-

27 28 29 30
Projected Projected Projected Projected Projected
A Distribution Schemes
ND 375 387 420 435 450
DISS 20 22 22 22 22

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S. FY FY FY FY FY
Particulars
No 2025-26 2026-27 2027-28 2028-29 2029-30
ZUPPADPATTI 7.5 7.5 7.5 7.5 7.5
Sardar Khushi Jyoti Yojna (SKJY) 25 25 20 20 20
RDSS 972.75 19.61 7.66 7.66 7.66
METER
SCP
HARIJANBASTI
FP
Total 1,400.25 461.11 477.16 492.16 507.16
B Rural Electrification Schemes
Special Component Plan
DDUJGY
SAGARKHEDU 30 30 30 30 30
Dark Zone
AG Tatkal
SPA
Smart Village
AG Wells Electrification (Normal
+DZ+SC+SagarKhedu)
Normal SPA+DZ 346.05 314.15 266.31 266.31 266.31
CWIP-AG Feeder Bifurcation
Work Plant & Machinery
SCAG Scheme 4.95 4.95 4.95 4.95 4.95
SCSP Scheme 1.3 1.3 1.3 1.3 1.3
Sagar Khedu Sarvangi Vikas 132 82.55 49.5 49.5 49.5
Yojana (AG Wells)
Total 514.30 432.95 352.06 352.06 352.06
C Other Central Schemes
SCADA/DMS/RDSS-Distribution
Infra Works
KUSUM (Component - B) 2.27

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S. FY FY FY FY FY
Particulars
No 2025-26 2026-27 2027-28 2028-29 2029-30
Total 2.27 - - - -

D Renewable Energy Based Projects

Solar Rooftop on Various PGVCL
offices
Solar Pump Irrigation
SKY
Capital Works in Progress - PM-
KUSUM-B Scheme
Offgrid to Grid connected Solar 0.23 0.23 0.23 0.23 0.23
AG Pump
Total 0.23 0.23 0.23 0.23 0.23
E System Improvement Scheme
SIS 82.5 82.5 82.5 82.5 82.5
under Conversion Of ODN TO
UCN -Lines & Cable Networks
Roboust Infrastructure 435 435 400 400 400
Total 517.5 517.5 482.5 482.5 482.5
F IT BUDGET
Scheme 1
Total 21.07 15.32 9.33 1.89 1.97
G Civil Budget
91-GENERAL
Total 60 50 55 60 65
H Others
HVDS 55 55 55 55 55
HVDS ENCON
IPDS
APDRP
RAPDRP-B

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S. FY FY FY FY FY
Particulars
No 2025-26 2026-27 2027-28 2028-29 2029-30
Fencing to Distribution
Transformer
Shimshala 0.25 0.25 0.25
Earthing of LST
Medium Voltage Covered
Conductor
Installation of WDD/WDT
Other/General Scheme
Underground System 528 1400 1400 1400 1400
Kishan Suryodaya Yojana 100 100 100 100 100
Total 683.25 1555.25 1555.25 1555.00 1555.00
GRAND Total 3,198.87 3,032.36 2,931.53 2,943.84 2,963.92

PGVCL has furnished scheme-wise DPRs and justification for projected capital expenditure as
detailed below:

Petitioner’s submission

Normal Development Scheme:

The Normal Development Scheme covers investments required to meet PGVCL's growing supply
obligations and expanding consumer base. The focus is on enhancing the distribution network to
ensure reliable power supply in response to increasing demand, including major projects like
relocation of overhead lines that impede public infrastructure development.

System Improvement Scheme (SI)

In compliance with GERC MYT Regulations, PGVCL's System Improvement

Scheme aims to reduce technical and commercial losses and improve power
supply reliability. Activities under this scheme include feeder bifurcation,

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installation of High Voltage Distribution System (HVDS) to minimize technical

losses, and installation of Watchdog Transformers to safeguard against overloads.

Sardar Krushi Jyoti Yojana (SKJY)

The SKJY aims at improving the quality and reliability of the agricultural power
supply by replacing outdated conductors and implementing feeder bifurcation.
The scheme is funded with 80% support from the Government of Gujarat and
20% contribution from PGVCL, ensuring cost-effective infrastructure upgrades
for agricultural areas.

Under Ground Cable (UGC) Scheme

PGVCL's UGC scheme involves replacing overhead power lines with

underground cables in cyclone-prone coastal regions and other key areas to
enhance power supply resilience, safety, and aesthetic appeal. This project also
aims to ensure uninterrupted power supply, especially during adverse weather
conditions, with an estimated expenditure of ₹ 528 crores for FY 2025-26.

High Voltage Distribution System (HVDS)

The HVDS initiative is targeted at converting the existing Low Voltage

Distribution System (LVDS) to HVDS, thereby significantly reducing technical
losses, curbing electricity theft, and improving voltage quality for agricultural
consumers. The scheme involves installing small capacity transformers and
converting approximately 560 km of existing LV lines to HV lines during FY
2025-26, backed by an estimated capital expenditure of ₹ 5500 lakh.

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Distribution Infrastructure Works:

As per the Revamped Distribution Sector Scheme guidelines, PGVCL will

undertake modernization of distribution infrastructure, including SCADA/DMS
installation, automation of the network, and other measures to enhance power
reliability, loss reduction, and operational efficiency. These investments align
with the MYT Regulations, supporting PGVCL's objective to meet operational
benchmarks in power reliability and reduce AT&C losses.

Commission’s Analysis

The provisions related to Capital Expenditure as per MYT Regulations, 2024 for Distribution Wires
Business are as under:

“95. Capital Investment Plan

95.1 Distribution Licensee shall submit detailed capital investment plan, financing plan
and physical targets for each year of the Control Period for strengthening and
augmentation of distribution network, meeting the requirement of load growth, reduction
in distribution losses, improvement in quality of supply, reliability, metering, reduction in
congestion, etc., to the Commission for approval, as a part of the Multi-Year Aggregate
Revenue Requirement for the entire Control Period:

Provided that all new and augmentation capital investment projects involving voltage
level above 33 kV, being part of the Distribution Licensee’s Capital Investment Plan,
irrespective of their value, shall require in-principle approval in accordance with the
Guidelines for in-principle clearance of proposed investment schemes as provided in
Annexure III of these Regulations:

Provided further that procurement and implementation of all such capital investment
projects involving voltage level above 33 kV shall be compulsorily undertaken through a

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transparent competitive bidding process, and same needs to be appropriately documented

for review of the Commission.

Provided further that any deviation from the competitive bidding process as mandated
above should have prior approval of the Commission.

95.2 Distribution Licensee shall be required to ensure optimum investments to enhance

efficiency, productivity and meet performance standards prescribed by the Commission.

95.3 Distribution Licensee shall be required to ensure that the procurement of the assets
have been undertaken in a competitive and transparent manner. Further the assets so
capitalized as a part of the approved capital investment plan under these Regulations
should necessarily be geo-tagged and properly recorded in Fixed Asset Register (FAR)
for allowance of the capitalization of the same by the Commission.

Provided that regarding the Assets already capitalized as on April 01, 2025, the
Distribution Licensee shall prepare and submit to the Commission a time-bound plan to
undertake the geo-tagging in phased manner, preferably within the Control Period, along
with the MYT Petition.

Provided further that the Distribution Licensee must provide access of the details of geo-
tagging to the Commission for online monitoring.

95.4 Capital Investment in network expansion in distribution shall be based on load flow
studies and in accordance with the requirements of the State Grid Code.

95.5 Distribution licensee shall submit the Capital Investment Plan as specified in
Chapter 2 of these Regulations.

95.6 Capital Investment Plan shall be a least cost plan for undertaking investments and
shall cover all capital expenditure projects of a value as specified in Guidelines for in-
principle clearance of proposed investment schemes as provided in Annexure III of these
Regulations or such other amount as may be stipulated by the Commission from time to
time, and shall be in such form as may be stipulated.

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95.7 Capital Investment Plan shall be accompanied by such information, particulars and
documents as may be required showing the need for the proposed investments,
alternatives considered, cost/benefit analysis and other aspects that may have a bearing
on the wheeling charges of the Distribution Wire Business.

95.8 The Commission shall consider the Capital Investment Plan along with the
Aggregate Revenue Requirement for the entire Control Period submitted by the
Distribution Wire Business taking into consideration the prudence of the proposed
expenditure and estimated impact on the wheeling charges of the Distribution Wire
Business.

95.9 Capital investment plan shall incorporate list of schemes in order of priority so as to
enable the Commission to approve the schemes in that order and in case lesser amount of
capital expenditure is to be approved then the schemes of lower priority could be
disapproved.

95.10 Distribution Wire Business shall submit, along with the Petition for determination
of Aggregate Revenue Requirement on each year of the control period, details showing
the progress of capital expenditure projects, together with such other information,
particulars or documents as the Commission may require to assess such progress.”

Similarly, for Retail Supply Business, the MYT Regulations, 2024 contains the following
provisions:

“106. Capital Investment Plan

106.1 Distribution Licensee shall submit a detailed capital investment plan, financing
plan and physical targets for each year of the Control Period for meeting the requirement
of load growth, reduction in distribution losses, increase in collection efficiency,
metering, consumer services, etc., to the Commission for approval, as a part of the Multi-
Year Aggregate Revenue Requirement for the entire Control Period.

106.2 Distribution Licensee shall be required to ensure optimum investments to enhance

efficiency, productivity and meet performance standards prescribed by the Commission.

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106.3 Distribution Licensee shall submit the Capital Investment Plan as specified in
Chapter 2 of these Regulations.

106.4 Capital Investment Plan shall be a least cost plan for undertaking investments and
shall cover all capital expenditure projects of a value as specified in Guidelines for in-
principle clearance of proposed investment schemes as provided in Annexure III of these
Regulations or such other amount as may be stipulated by the Commission from time to
time, and shall be in such form as may be stipulated.

106.5 The Capital Investment Plan shall be accompanied by such information, particulars
and documents as may be required showing the need for the proposed investments,
alternatives considered, cost/benefit analysis and other aspects that may have a bearing
on the Distribution Wire Business.

106.6 The Commission shall consider the Capital Investment Plan along with the
Aggregate Revenue Requirement for the entire Control Period submitted by the
Distribution Retail Supply Business taking into consideration the prudence of the
proposed expenditure and estimated impact on Distribution Wire Business.

106.7 Capital investment plan shall incorporate list of schemes in order of priority so as
to enable the Commission to approve the schemes in that order and in case lesser amount
of capital expenditure is to be approved then the schemes of lower priority could be
disapproved.

106.8 The Distribution Retail Supply Business shall submit, along with the Petition for
determination of Aggregate Revenue Requirement on each year of the control period,
details showing the progress of capital expenditure projects, together with such other
information, particulars or documents as the Commission may require to assess such
progress.”

The Annexure III to the MYT Regulations 2024, provides the guidelines for Capital Expenditure
approval, criteria for DPR requirement, DPR specifications and evaluation criteria that the
Commission should adopt while giving ‘In-principle’ approval to a scheme.

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The Commission notes that the petitioner had provided 14 DPRs along with its reply to the
Commission’s queries. These have been evaluated based on the criteria as per Annexure III of the
MYT Regulations 2024 and the detail of the same is tabulated below:

Table 5-79: Evaluation of DPRs submitted by PGVCL

Name of Scheme

SKSVY
Criteria SPA DZ Civil DISS IT HVDS
(Ag Wells)

Safety Requirement ü ü û û û û
Necessity of
Investment ü ü ü ü ü ü
Bill of Quantity and
Project Costing ü ü û û û û
Estimation

Cost Benefit Analysis û û û û û û

Evaluation of
Alternatives and ü ü û û û û
Constraints

Risk Analysis û û û û û û
Project Monitoring
Mechanism & û û û û û û
Execution Timeline

Technical Justification û û û û û û
Quantifiable Customer
Qualitative Qualitative Qualitative Qualitative Qualitative Qualitative
Benefits
Name of Scheme

KSY RDSS ND Robust SI SKJY

Criteria
N/w

Safety Requirement û û ü û û û
Necessity of Investment ü ü ü ü ü ü

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Name of Scheme

SKSVY
Criteria SPA DZ Civil DISS IT HVDS
(Ag Wells)
Bill of Quantity and
Project Costing û ü ü û û û
Estimation

Cost Benefit Analysis û û û û û û

Evaluation of
Alternatives and û û ü û û û
Constraints

Risk Analysis û û û û û û
Project Monitoring
Mechanism & Execution û û û û û û
Timeline

Technical Justification û û û û û û
Quantifiable Customer
Benefits
Qualitative Qualitative Qualitative Qualitative û û

Criteria SSVY Ug CW

Safety Requirement û û
Necessity of Investment ü ü
Bill of Quantity and Project
Costing Estimation û û
Cost Benefit Analysis û û
Evaluation of Alternatives and
Constraints û û
Risk Analysis û û
Project Monitoring Mechanism
& Execution Timeline û û

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Criteria SSVY Ug CW

Technical Justification û û
Quantifiable Customer
Qualitative Qualitative
Benefits

As per the above evaluation, it is clear that all of the DPRs submitted by the Petitioner do not fully
meet the requirements of the MYT Regulations 2024. The Commission notes that capital expenditure
is necessary to cater the increasing demand, for system strengthening and carrying out regular R&M
activities. In view of this, for determination of ARR for the control period, the Commission decides
to provisionally approve the figures of capital expenditure as submitted by the Petitioner. It is made
clear to the Petitioner that final figures of capital expenditure will be considered by the Commission
at the time of truing-up based on approved DPR of the respective scheme. The petitioner shall submit
the DPRs as per the provisions of MYT Regulations, 2024 and that the approval of capital
expenditure / capitalization in this Order shall not absolve the Petitioner to comply with the
Regulations regarding submission of DPRs.

Table 5-80: Approved Capital Expenditure Plan for MYT Control Period (Rs. Crore)

S. FY FY FY FY FY
Particulars
No 2025-26 2026-27 2027-28 2028-29 2029-30

Particulars FY 2025-26 FY 2026- FY 2027- FY 2028- FY 2029-

27 28 29 30
Projected Projected Projected Projected Projected
A Distribution Schemes
ND 375 387 420 435 450
DISS 20 22 22 22 22

ZUPPADPATTI 7.5 7.5 7.5 7.5 7.5

Sardar Khushi Jyoti Yojna (SKJY) 25 25 20 20 20
RDSS 972.75 19.61 7.66 7.66 7.66

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S. FY FY FY FY FY
Particulars
No 2025-26 2026-27 2027-28 2028-29 2029-30
METER
SCP
HARIJANBASTI
FP
Total 1,400.25 461.11 477.16 492.16 507.16
B Rural Electrification Schemes
Special Component Plan
DDUJGY
SAGARKHEDU 30 30 30 30 30
Dark Zone
AG Tatkal
SPA
Smart Village
AG Wells Electrification (Normal
+DZ+SC+SagarKhedu)
Normal SPA+DZ 346.05 314.15 266.31 266.31 266.31
CWIP-AG Feeder Bifurcation
Work Plant & Machinery
SCAG Scheme 4.95 4.95 4.95 4.95 4.95
SCSP Scheme 1.3 1.3 1.3 1.3 1.3
Sagar Khedu Sarvangi Vikas 132 82.55 49.5 49.5 49.5
Yojana (AG Wells)
Total 514.30 432.95 352.06 352.06 352.06
C Other Central Schemes
SCADA/DMS/RDSS-Distribution
Infra Works
KUSUM (Component - B) 2.27
Total 2.27 - - - -

D Renewable Energy Based Projects

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S. FY FY FY FY FY
Particulars
No 2025-26 2026-27 2027-28 2028-29 2029-30
Solar Rooftop on Various PGVCL
offices
Solar Pump Irrigation
SKY
Capital Works in Progress - PM-
KUSUM-B Scheme
Offgrid to Grid connected Solar 0.23 0.23 0.23 0.23 0.23
AG Pump
Total 0.23 0.23 0.23 0.23 0.23
E System Improvement Scheme
SIS 82.5 82.5 82.5 82.5 82.5
under Conversion Of ODN TO
UCN -Lines & Cable Networks
Roboust Infrastructure 435 435 400 400 400
Total 517.5 517.5 482.5 482.5 482.5
F IT BUDGET
Scheme 1
Total 21.07 15.32 9.33 1.89 1.97
G Civil Budget
91-GENERAL
Total 60 50 55 60 65
H Others
HVDS 55 55 55 55 55
HVDS ENCON
IPDS
APDRP
RAPDRP-B
Fencing to Distribution
Transformer
Shimshala 0.25 0.25 0.25
Earthing of LST

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S. FY FY FY FY FY
Particulars
No 2025-26 2026-27 2027-28 2028-29 2029-30
Medium Voltage Covered
Conductor
Installation of WDD/WDT
Other/General Scheme
Underground System 528 1400 1400 1400 1400
Kishan Suryodaya Yojana 100 100 100 100 100
Total 683.25 1555.25 1555.25 1555.00 1555.00
GRAND Total 3,198.87 3,032.36 2,931.53 2,943.84 2,963.92

5.12 Funding of Capitalisation

Petitioner’s submission

PGVCL submitted that for Distribution business, schemes are of shorter duration and hence
capitalization is considered same as above mentioned Capital Expenditure. Funding of capitalisation
is envisaged through various sources categorised under four headings namely: Consumer
Contribution, Grants, Equity and Debt. The remaining capital expenditure after deducting consumer
contribution and grants is proposed to be funded through debt and equity in the ratio of 70:30.

The detailed breakup of projected funding of capitalisation for MYT Control Period is mentioned
below.

Table 5-81: Funding of Capitalisation projected for MYT Control Period (Rs. Crore)

S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
1 Capitalization 3,198.87 3,032.36 2,931.53 2,943.84 2,963.92
2 Consumer Contribution 154.00 155.00 227.00 237.00 247.00
3 Grants 1008.00 38.90 35.73 34.00 34.00
4 Balance CAPEX for the Year 2,036.87 2,838.46 2,668.80 2,672.84 2,682.92

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5 Debt @70% 1,425.81 1,986.92 1,868.16 1,870.99 1,878.04

6 Equity @30% 611.06 851.54 800.64 801.85 804.88

Commission’s Analysis

The Commission observed that during the past three years (FY 2021-22 to FY 2023-24), the
Petitioner could achieve an average capitalization of around 106.36% to the average capital
expenditure approved. Accordingly, the Commission allows capitalization equivalent to the amount
of capital expenditure approved for the MYT Control Period. The Commission has considered the
amount of consumer contribution and grant as submitted by the Petitioner.

The Commission has approved the capitalisation as projected based on debt and equity mix as 70:30
after deducting the consumer contribution and grants from total approved capitalisation. The funding
of capitalisation approved by the Commission for MYT Control Period is detailed in the table below:

Table 5-82: Approved funding of Capital Expenditure Plan for MYT Control Period (Rs. Crore)

S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
1 Capitalization 3,198.87 3,032.36 2,931.53 2,943.84 2,963.92
2 Consumer Contribution 154.00 155.00 227.00 237.00 247.00
3 Grants 1,008.00 38.90 35.73 34.00 34.00
4 Balance CAPEX for the Year 2,036.87 2,838.46 2,668.80 2,672.84 2,682.92
5 Debt @70% 1,425.81 1,986.92 1,868.16 1,870.99 1,878.04
6 Equity @30% 611.06 851.54 800.64 801.85 804.88

5.13 Operation and Maintenance (O&M) Expenses

PGVCL has projected O&M expenses for MYT Control Period, as detailed in the table below:

Table 5-83: Projected O&M Expenses for MYT Control Period (Rs. Crore)

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S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
1 Employee Cost 1,253.55 1,312.03 1,373.24 1,437.30 1,504.35
2 R&M Expenses 267.70 280.19 293.26 306.94 321.26
3 A&G Expenses 435.25 488.23 538.45 587.00 607.42
4 RDSS Metering OPEX 145.29 229.02 526.26 526.26 526.26
5 Other Expenses Capitalised (337.12) (352.85) (369.31) (386.54) (404.57)
6 O&M Expenses 1,764.68 1,956.62 2,361.90 2,470.97 2,554.73

Petitioner’s submission

The Operation and Maintenance (O&M) expenses for the MYT control period have been determined
based on the GERC MYT Regulations 2024 which stipulate that the O&M expenses should be
derived from the average of actual audited O&M expenses for the past ten years ending March 31,
2024.

GERC MYT Regulations 2024 provides for the following methodology to arrive at projected figures
for MYT Control Period of FY 2025-26 to FY 2029-30;

Operation and Maintenance expenses for nth year of the Control Period shall be
determined based on the formula shown below:

O&Mn = (R&Mn + EMPn + A&Gn) x (1 - Xn) + Terminal Liabilities and other one-time
expenses

Where, R&Mn –Repair and Maintenance Costs of Distribution Wire Business for the nth
year;

EMPn –Employee Cost of Distribution Wire Business for the nth year;

A&Gn –Administrative and General Costs of Distribution Wire Business for the nth year;

Xn -Efficiency factor for nth Year. Value of Xn to be considered as zero till such time the
same is determined through a study by the Commission.

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Provided that the Terminal Liabilities and other one-time expenses shall be allowed
separately on actual basis subject to prudence check.

Furthermore, GERC MYT Regulations 2024, states that average of these ten years of O&M expenses
is considered as the O&M cost for the year ending March 31, 2019. This base value is then escalated
at the respective escalation rates for each subsequent year - FY 2019-20, FY 2020-21, FY 2021-22,
FY 2022-23, and FY 2023-24 - to arrive at the O&M expenses for the base year ending March 31,
2024.

Accordingly, based on the above methodology, PGVCL has determined the base O&M had been
determined. PGVCL has considered the audited O&M expenses for the last 10 years which are
tabulated below.

Table 5-84: Audited O&M Expenditure for last 10 years (Rs. Crore)
Year Employee Cost R&M A&G
2014-15 578.02 106.06 212.09
2015-16 677.97 159.8 123.73
2016-17 839.39 119.43 160.90
2017-18 874.02 147.71 163.44
2018-19 897.82 129.56 179.45
2019-20 956.75 175.47 183.54
2020-21 986.22 197.89 174.48
2021-22 1102.77 773.93 192.66
2022-23 1138.68 246.51 228.32
2023-24 (actual) 1351.31 401.66 285.16
New Base 2018-
940.30 245.80 190.38
19 (O&M)
*As submitted by PGVCL vide additional submission

The base O&M expenses for FY 2018-19 determined by taking average of above values as per
PGVCL is as follows:

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Table 5-85: Base O&M expenses for FY 2018-19 (Rs. Crore)

Particular FY 2018-19
Employee Cost 864.03
R&M Expense 223.77
A&G Expense 193.37
Employee Cost Capitalised 190.44
A&G expense Capitalised 43.93

In accordance with GERC MYT Regulations 2024, the escalation rate for each financial year (FY
2019-20 to FY 2023-24) has been computed by considering the weightages assigned to Wholesale
Price Index (WPI) and Consumer Price Index (CPI). The weightage for WPI (WeWPI) is derived
from the average yearly inflation based on the monthly WPI of the respective financial year, as
published by the Office of Economic Advisor, Ministry of Commerce and Industry, Government of
India. Similarly, the weightage for CPI (WeCPI) is also considered.

PGVCL has calculated the escalation rate by following the methodology proposed by the
Commission in the Draft MYT Regulation 2023, wherein, as per the Explanatory Memorandum,
where under Para 5.15.7 the following approach was adopted:

"In regard to the determination of the weightages to be assigned to WPI and CPI for
calculating the inflation factor, it has been observed that generally employee-related
expenses are linked to CPI for Industrial Workers. For non-employee-related expenses,
i.e., A&G and R&M expenses, WPI serves as a better indicator."

Accordingly, PGVCL has determined the weightages for CPI and WPI as 73:27 (CPI:WPI). This
ratio reflects that 69% of the O&M expenses are influenced by employee-related costs and are thus
escalated using CPI, whereas the remaining 31%, linked to A&G and R&M costs, are escalated using
WPI.

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Table 5-86: Determination of weightages

Year CPI weightage WPI weightage
2014-15 66% 34%
2015-16 72% 28%
2016-17 68% 32%
2017-18 75% 25%
2018-19 73% 27%
2019-20 74% 26%
2020-21 73% 27%
2021-22 72% 28%
2022-23 52% 48%
2023-24 68% 32%
Weightage
69% 31%
(Average)

Following table provides the year-on-year variations in CPI and WPI for the last five years.
Considering the average WPI and CPI and provisions of the GERC MYT Regulations 2024, PGVCL
has calculated the escalation factor as shown in the following table:

Table 5-87: Calculation of Escalation Factor

Year WPI WPI Inflation CPI CPI Inflation
FY 2013-14 112.46 236.00
FY 2014-15 113.88 1.26% 250.83 6.29%
FY 2015-16 109.72 -3.65% 265.00 5.65%
FY 2016-17 111.62 1.73% 275.92 4.12%
FY 2017-18 114.88 2.92% 284.42 3.08%
FY 2018-19 119.84 4.32% 299.92 5.45%
FY 2019-20 121.80 1.63% 322.50 7.53%
FY 2020-21 123.38 1.29% 338.69 5.02%
FY 2021-22 139.41 13.00% 356.06 5.13%

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Year WPI WPI Inflation CPI CPI Inflation

FY 2022-23 152.53 9.41% 377.62 6.05%
FY 2023-24 151.45 -0.70% 397.20 5.19%
Average from
FY 14-15 to FY 3.12% 5.35%
23-24
Weight 31% 69%
Escalation
4.67%
Factor

Considering the escalation factor and O&M expenses for FY 2023-24, PGVCL has escalated the
revised normative O&M expenses of the previous year by an escalation factor of 4.67% for the MYT
control period from FY 2025-26 to FY 2029-30.

Employee Expense:

In accordance with GERC (Multi-Year Tariff) Regulations 2024, the employee expenses are
calculated by PGVCL using the following formula and are tabulated below:

EMPn = [(EMP(n-1)) × (1 + Indexn) × (CPI_inflation)] + Provision_(emp)

Table 5-88: Employee Cost projected for MYT Control Period (Rs. Crore)

S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
1 Employee Cost 1253.55 1312.03 1373.24 1437.30 1504.35
Other Expenses
2 276.30 289.19 302.68 316.80 331.58
Capitalised

A&G Expense:

In accordance with GERC (Multi-Year Tariff) Regulations 2024, the Administrative and General
(A&G) expenses during the MYT control period from FY 2025-26 to FY 2029-30 are calculated by
PGVCL using the following formula:

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A&Gn = [(A&G_(n-1)) × (WPI_inflation)]

Where:

• WPI_inflation: Represents the average increase in the Wholesale Price Index (WPI) for the
immediately preceding three or five years before the base year, whichever is higher. This ensures
that the escalation factor reflects the inflationary pressures affecting A&G costs, which include
materials, services, and administrative overheads.

• A&G_n: Administrative and General expenses for the nth year of the MYT control period.

• A&G_(n-1): Administrative and General expenses for the (n-1)th year of the MYT control period,
used as the base value for determining expenses in the subsequent year.

Table 5-89: A&G Expenses projected for MYT Control Period (Rs. Crore)

S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
Administration &
1 267.70 280.19 293.26 306.94 321.26
General Charges
Other Expenses
2 60.82 63.66 66.63 69.74 72.99
Capitalised

R&M Expense:

Repair and Maintenance (R&M) expenses during the MYT control period have been calculated by
PGVCL using the formula provided in the GERC MYT Regulations 2024. The R&M expenses are
calculated based on the relationship between the Gross Fixed Assets (GFA) and the R&M costs, as
shown in the formula below:

R&M_n = K × GFA_(n-1)*(1-IndexEx)

Where:

• K is a constant representing the percentage relationship between R&M expenses and the Gross
Fixed Assets. This percentage captures the historical trend of maintenance costs in relation to the
asset base.

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• R&M_n: Repair and Maintenance costs for the nth year.

• GFA_(n-1): Gross Fixed Assets for the (n-1)th year, representing the asset value used for
determining the R&M expenses for the current year.

PGVCL has determined the value of ‘K’ based on the R&M expenses and GFA for past ten years
ending March 31, 2024 and the same is tabulated below:

Table 5-90: K-factor as computed by PGVCL

Year GFA R&M
2014-15 8684.85 76.97
2015-16 10310.62 106.06
2016-17 9053.34 159.8
2017-18 10266.95 119.43
2018-19 11936.47 147.71
2019-20 14172.68 129.56
2020-21 15968.47 175.47
2021-22 17118.58 197.89
2022-23 17951.04 773.93
2023-24 19353.89 246.51
Average 13481.69 213.33
K Factor 1.58%

Based on the above, PGVCL has projected the R&M expenses for the MYT Control Period and the
same is tabulated below:

Table 5-91: R&M expenses projected for MYT Control Period (Rs. Crore)

S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
Repair &
1 435.25 488.23 538.45 587.00 607.42
Maintenance

RDSS Metering Opex:

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Ministry of Power, New Delhi, have announced Revamped Distribution Sector Scheme (RDSS) vide
Office Memorandum dated 20.07.2021 with financial outlay of Rs. 3,03,758 Crore and an estimated
gross budgetary support (GBS) of Rs. 97,631 Crore from Central Government. The Scheme
formulated with the aim of large-scale reforms in Distribution Sector that would enable the
DISCOMs to reduce losses to make them financially sustainable and operationally efficient in a time
bound manner by providing financial assistance to DISCOMs for strengthening of supply
infrastructure based on meeting pre-qualifying criteria and achieving basic minimum benchmarks in
reforms.

The Scheme has two parts. Part-A includes Component I: Metering (Consumer Metering & Feeder
and DTR Metering), Component II: Distribution Infrastructure Works (Infrastructure works for loss
reduction & Infrastructure works for Modernization & network strengthening) & Component III:
Project Management. Part-B includes Training, Capacity Building and other Enabling & Supporting
Activities.

Metering component includes installation of pre-paid smart meters for all consumers along with
associated AMI, communicable meters for DTs & Feeders, ICT including Artificial Intelligence (AI),
Machine Learning (ML), etc. based solutions for power sector and a unified billing and collection
system. Funding under this Part will be available only if the DISCOM agrees to the operation of
smart meters in prepayment mode for consumers, and in accordance with the uniform approach
indicated by the Central Government, with implementation in TOTEX mode. DISCOMs have to pay
monthly charges as per unit rate for 1-Ph and 3-Ph meters to the agency. Smart Meter Tender for
Gujarat DISCOMs have been awarded and discovered price of smart meters is shown below.

Table 5-92: Discovered price of Smart Meters (Rs./meter)

S. No. Smart Meter Type Cost per meter
1 1-Ph Meters 73.83
2 3-Ph Meters 96.55
3 LT CT Meters 215.67
4 DT Meters 215.63

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Based on the smart meter release target, additional operational cost under RDSS Metering Opex for
the MYT Control Period is as follows:

Table 5-93: Proposed RDSS Metering Opex for MYT Control Period (Rs. Crore)

S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
RDSS Metering
1 145.29 229.02 526.26 526.26 526.26
Opex

Commission’s Analysis

The Employee expenses, R&M expenses and A&G expenses are commonly considered as O&M
expenses. PGVCL has also included RDSS Metering Opex in the O&M expenses.

PGVCL has projected Employee cost, A&G expenses, R&M expenses and other expenses capitalised
considering the provisions of MYT Regulations 2024. The Commission has gone through the
computations of PGVCL in this regard.

The provisions of MYT Regulations 2024 regarding Operation & Maintenance expenses are
reproduced hereunder:

Operation and Maintenance shall be derived on the basis of the average of the actual
audited Operation and Maintenance expenses for the past ten years ending March 31,
2024, excluding abnormal Operation and Maintenance expenses, if any, subject to
prudence check by the Commission:

Provided that the average of such Operation and Maintenance expenses shall be
considered as Operation and Maintenance expenses for the Year ended March 31, 2019,
and shall be escalated at the respective escalation rate for FY 2019-20, FY 2020-21, FY
2021-22, FY 2022-23 and FY 2023-24, to arrive at the Operation and Maintenance
expenses for the base year ending March 31, 2024;

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Provided further that the escalation rate for FY 2019-20, FY 2020-21, FY 2021-22, FY
2022-23 and FY 2023-24, shall be computed by considering (WEWPI) weightage to the
average yearly inflation derived based on the monthly Wholesale Price Index of the
respective financial year as per the Office of Economic Advisor, Ministry of Commerce
and Industry, Government of India and (WECPI) weightage to the average yearly inflation
derived based on the monthly Consumer Price Index for Industrial Workers (all-India) of
the respective financial year as per the Labour Bureau, Government of India.

Further, the determination of Operation & Maintenance expenses for the MYT Control Period as
provided in the MYT Regulations 2024 is as follows:

O&Mn = (R&Mn + EMPn + A&Gn) x (1 - Xn) + Terminal Liabilities and other one-time
expenses

Where,

R&Mn –Repair and Maintenance Costs of Distribution Wire Business for the nth year;

EMPn –Employee Cost of Distribution Wire Business for the nth year;

A&Gn –Administrative and General Costs of Distribution Wire Business for the nth year;

Xn -Efficiency factor for nth Year. Value of Xn to be considered as zero till such time the
same is determined through a study by the Commission.

Provided that the Terminal Liabilities and other one-time expenses shall be allowed
separately on actual basis subject to prudence check.

Further, as provided in the MYT Regulations 2024, the components of the Operation & Maintenance
expenses are to be computed as follows:

(i) R&Mn = K * GFA * (1+Index Escn)

(ii) EMPn + A&Gn = (EMPn-1 + A&Gn-1) * (1+Index Escn)

Where,

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‘K’ is a constant (expressed in %) governing the relationship between R&M costs and
Gross Fixed Assets (GFA) for the Control Period. The value of ‘K’ will be calculated
based on the R&M expenses and GFA for past ten years (or all available years in case of
utilities operating for less than 10 years as on April 01, 2024) ending March 31, 2024
approved by the Commission, subject to prudence check and any other factor considered
relevant by the Commission;

‘GFA’ is the Opening balance of the gross fixed assets of the nth year;

EMPn-1 - Employee Cost of Distribution Wire Business for the immediately preceding
year;

A&Gn-1 - A&G of Distribution Wire Business for the immediately preceding year;

Provided that for first year of control period EMPn-1 and A&Gn-1 shall mean Employee
and A&G expenses of the year after the base year (FY 2023-24) i.e. FY 2024-25, as
derived using the escalation rate for FY 2024-25 as mentioned below;

Index Esc means the average Inflation escalation to be considered on the basis of
weightage of WPI and CPI respectively of the relevant year and to be computed as below:

Index Escn = WECPICPIn + WEWPIWPIn

Whereby,

WECPI: Weightage of CPI Index and;

WEWPI: Weightage of WPI Index;

‘WPIn’ (expressed in %) means the average yearly inflation of Wholesale Price Index (all
commodities) over the years for the nth year.

‘CPIn’ (expressed in %) means the average yearly inflation of Consumer Price Index
(Industrial workers) over the years for the nth year.

Note: Source for CPI and WPI calculation as under:

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Wholesale Price Index numbers as per Office of Economic Advisor, Ministry of Commerce
& Industry, Government of India {Base Year: 2011-12 Series};

Consumer Price Index for Industrial Workers (all India) as per Labour Bureau,
Government of India {Base Year: 2001=100}

Provided further that the escalation rate for FY 2024-25 and for the complete control
period i.e. FY 2025-26, FY 2026-27, FY 2027-28, FY 2028-29 and FY 2029-30 shall be
computed by considering (WEWPI) weightage to the 10-year average of the yearly inflation
of the last ten years ending March 31, 2024 for Wholesale Price Index (WPI) and (WECPI)
weightage to the 10-year average of the yearly inflation of the last ten years ending March
31, 2024 for Consumer Price Index (CPI):

The Commission has considered the O&M expenses allowed in Truing up of the past 10 years after
prudence check excluding any abnormal expenses (expenses due to natural calamity, etc.).
Consequently, the O&M expenses for FY 2018-19 have been determined as follows:

Table 5-94: O&M Expenditure for last 10 years (Rs. Crore)

Employee Employee Cost A&G
Year R&M A&G
Cost Capitalised Capitalised
2014-15 578.02 106.06 106.59 249.27 81.62
2015-16 648.20 159.80 122.41 245.79 61.36
2016-17 748.03 119.43 132.38 140.07 38.64
2017-18 869.88 147.71 158.68 180.23 41.19
2018-19 889.02 133.38 175.64 251.75 47.35
2019-20 1,098.41 176.89 182.01 211.68 44.61
2020-21 968.45 199.64 162.54 177.46 29.91
2021-22 1,227.60 195.79 182.28 89.19 20.76
2022-23 1,150.08 231.68 218.57 158.58 30.58
2023-24 1,429.32 244.56 273.40 200.42 43.31
Average (for 960.70 171.49 171.45 190.44 43.93
FY 2018-19)

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The Commission notes that the Petitioner has calculated the escalation rate for each financial year
(FY 2019-20 to FY 2023-24) by considering A&G and R&M expenses for weightage to be assigned
to Wholesale Price Index (WPI) and Employee cost for weightage to be assigned to Consumer Price
Index (CPI). The Commission adopts similar methodology and determines the weightage as below:

Table 5-95: Approved CPI & WPI weightage

Year CPI weightage WPI weightage
2014-15 73.11% 26.89%
2015-16 69.67% 30.33%
2016-17 74.81% 25.19%
2017-18 73.95% 26.05%
2018-19 74.21% 25.79%
2019-20 75.37% 24.63%
2020-21 72.78% 27.22%
2021-22 76.45% 23.55%
2022-23 71.87% 28.13%
2023-24 73.40% 26.60%
Weightage
73.56% 26.44%
(Average)

The Commission has computed the year-on-year variations in CPI and WPI for the last ten years.
Considering the average WPI and CPI and provisions of the MYT Regulations 2024, the escalation
factor for the MYT Control Period is computed as shown in the following table:

Table 5-96: Escalation factor approved for MYT Control Period

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Year WPI WPI Inflation CPI CPI Inflation

FY 2018-19 119.79 4.28% 299.92 5.45%
FY 2019-20 121.80 1.68% 322.50 7.53%
FY 2020-21 123.38 1.29% 338.69 5.02%
FY 2021-22 139.41 13.00% 356.06 5.13%
FY 2022-23 152.53 9.41% 377.62 6.05%
FY 2023-24 151.42 -0.73% 397.20 5.19%
Average from
FY 14-15 to FY 3.12% 5.35%
23-24
Weightage 26.44% 73.56%
Escalation
4.76%
Index

Employee and A&G Expenses:

The Commission has escalated the Employee and A&G Expenses of FY 2018-19 as determined
above, on the basis of relevant year’s inflation to arrive at Employee and A&G Expenses for FY
2023-24.

Table 5-97: O&M expenses (EC and A&G) determined for FY 2023-24 (base year) (Rs. Crore)
FY FY FY FY FY FY
Particulars
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
WPI inflation 1.68% 1.29% 13.00% 9.41% (0.73)%
CPI inflation 7.53% 5.02% 5.13% 6.05% 5.19%
Employee cost 960.70 1033.04 1084.91 1140.55 1209.59 1272.32
A&G 171.45 174.32 176.58 199.53 218.30 216.71
Employee cost
190.44 204.78 215.07 226.10 239.78 252.22
capitalised
A&G capitalised 43.93 44.67 45.25 51.13 55.94 55.53

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The Employee and A&G Expenses as determined above for FY 2023-24 have been escalated as per
the escalation factor determined in the relevant section to determine the Employee and A&G
Expenses for the MYT Control Period. The same has been tabulated below:

Table 5-98: O&M expenses (EC and A&G) determined for MYT Control Period (Rs. Crore)
FY FY FY FY FY FY
Particulars
2024-25 2025-26 2026-27 2027-28 2028-29 2029-30
Employee cost 1332.89 1396.34 1462.80 1532.44 1605.38 1681.80
A&G 227.03 237.84 249.16 261.02 273.44 286.46
Employee cost
264.22 276.80 289.98 303.78 318.24 333.39
capitalised
A&G capitalised 58.17 60.94 63.85 66.88 70.07 73.40

R&M Expenses:

The Commission notes that PGVCL has taken GFA and R&M expenses of last 10 years to compute
the K-factor for the MYT Control Period. However, due to discrepancies observed in the data of
PGVCL, the Commission has computed the K-factor as below considering the approved figures of
opening balance of GFA and R&M expenses of past ten years.

Table 5-99: Approved K-factor for MYT Control Period

Opening R&M
Year
GFA Expenses
2014-15 8,684.85 51.53
2015-16 10,310.62 53.58
2016-17 11,815.14 106.06
2017-18 13,195.22 159.80
2018-19 14,864.75 119.43
2019-20 17,100.97 147.71
2020-21 18,896.76 133.38
2021-22 20,036.64 176.89
2022-23 20,863.22 199.64

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Opening R&M
Year
GFA Expenses
2023-24 22,266.07 195.79
Average 15,803.42 171.49
K Factor 1.09%

The R&M expense for the MYT Control Period have been computed by applying the formula as per
the MYT Regulations 2024 and the figures so obtained are tabulated below:

Table 5-100: R&M expenses for MYT Control Period (Rs. Crore)

S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
1 Opening GFA 25,687.21 28,886.08 31,918.44 34,849.97 37,793.81
2 K-factor 1.09% 1.09% 1.09% 1.09% 1.09%
3 Escalation index 4.76% 4.76% 4.76% 4.76% 4.76%
4 R&M Expense 292.02 328.38 362.86 396.18 429.65

RDSS Metering Opex:

The Commission has also taken note of the RDSS Opex as projected by PGVCL. Since the Petitioner
has not incurred any expense against RDSS metering opex in FY 2022-23 and FY 2023-24,
justification of projected amounts for the MYT Control Period (FY 2025-26 to FY 2029-30) along
with the full timeline of installation of smart meters was sought.

PGVCL submitted that As per approved DPR of RDSS, Target period for smart meter installation
work was March’2025 but smart meter installation work could not be undertaken as per target on
account of oppose and not allowing to install meters by various categories of consumers. Now to
complete the entire approved quantity of smart meters the project timeline is revised and same will
be completed in FY 2027-28. Thus, based on proposed planning of smart Meter installation amounts
for OPEX for the control period FY 2025-26 to FY 2029-30 projected.

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Following implementation plan was also submitted by PGVCL in the reply to data query:

Table 5-101: RDSS smart metering implementation plan

FY 2025-26 FY 2026-27 FY 2027-28
S.
Item Particulars No. of Amt. No. of Amt. No. of Amt.
No.
Meters (Rs. Cr) Meters (Rs. Cr) Meters (Rs. Cr)
1-Ph Meters 1158243 838.06 789032 570.91 3232567 2338.97
1

3-Ph Meters 112000 104.69 98141 91.74 93464 87.37

LT CT Meters 16347 33.39 9435 19.27

DT Meters 98410 226.06 0 0

5 Sub Total 1385000 1202.21 896608 3326031

6 PIA Fees 73.54 47.61 176.61
7 Total 1275.76 47.61 176.61

From the above table it is observed that smart metering is planned to be completed by FY 2027-28.
Thereafter, from FY 2027-28 onwards, opex for smart metering for full year is estimated by PGVCL.

Taking note of the reply of the Petitioner, the Commission approves the amount as claimed as part
of the overall O&M expenses for the MYT Control Period.

Accordingly, the Commission has approved total O&M expenses for MYT Control Period, as
detailed in table below:

Table 5-102: Approved O&M Expenses for MYT Control Period (Rs. Crore)

S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
1 Employee Cost 1,396.34 1,462.80 1,532.44 1,605.38 1,681.80
2 R&M Expenses 237.84 249.16 261.02 273.44 286.46

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S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
3 A&G Expenses 292.02 328.38 362.86 396.18 429.65
4 RDSS Metering Opex 145.29 229.02 526.26 526.26 526.26
5 Other Expenses Capitalised (337.75) (353.82) (370.67) (388.31) (406.79)
6 O&M Expenses 1,733.74 1,915.54 2,311.90 2,412.96 2,517.37

5.14 Depreciation
PGVCL has projected depreciation for MYT Control period, as detailed in the table below:

Table 5-103: Depreciation projected for MYT Control Period (Rs. Crore)

S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
Gross Block in Beginning of the 26,279.81 29,478.68 32,511.04 35,442.57 38,386.41
1
year
2 Additions during the Year (Net) 3,198.87 3,032.36 2,931.53 2,943.84 2,963.92
Cumulative Depreciation at the 5,148.90 6,619.73 8,254.58 10,046.97 11,994.54
3
Beginning of the Year
4 Depreciation for the Year 1,470.83 1,634.85 1,792.39 1,947.58 2,103.49
Cumulative Depreciation at the 6,619.73 8,254.58 10,046.97 11,994.54 14,098.03
5
End of the Year
6 Average Rate of Depreciation 5.28% 5.27% 5.28% 5.28% 5.28%

Petitioner’s submission

PGVCL submitted that it has considered the closing Gross block of fixed assets of FY 2023-24 as
the opening Gross block of fixed assets for FY 2024-25. The addition during the FY 2024-25 is
considered same as approved by the Commission in the Tariff Order dated 1st June 2024.

Considering the GERC MYT Regulations 2024, the depreciation of assets for PGVCL has been
determined as follows:

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• For assets capitalized before 1st April 2025, depreciation has been considered at a weighted average
depreciation rate, which will be used to service the normative loan of PGVCL for assets capitalized
before this date.
• For assets capitalized after 1st April 2025, depreciation has been calculated as per the rates specified
in Annexure 1 of the GERC MYT Regulations 2024. The depreciation for assets capitalized after 1st
April 2025 has been taken into account for the calculation of Return on Capital Employed (ROCE).

Depreciation has been calculated taking into consideration the opening balance of assets in the
beginning of the year and the projected capitalisation during the year. Depreciation rate for MYT
Control Period is considered same as actual depreciation rate of FY 2023-24.

Commission’s Analysis

The Commission notes that PGVCL has computed the depreciation for MYT Control Period,
adopting the asset wise normative rate of depreciation on assets capitalised till 31.03.2025. For
projected capitalisation commencing from 01.04.2025 onwards, depreciation has been separately
calculated as per normative rates of depreciation as defined in the MYT Regulations 2024. The
Commission has considered the Closing GFA as on 31st March, 2024 as approved for FY 2023-24,
as the Opening GFA for FY 2024-25 and has considered the additions as approved for FY 2024-25
in order dated 1st June 2024 to arrive at the Closing GFA for 2024-25, which in turn is considered as
the Opening GFA as on 1st April, 2025. The rate of depreciation for the assets capitalised prior to 1st
April 2025 has been considered same as approved in the Truing up of FY 2023-24. The additions
during MYT Control Period are considered as approved by the Commission. The rate of depreciation
is considered as projected by PGVCL for the asset capitalised w.e.f. 1st April 2025. Accordingly, the
Commission has computed and approved the Depreciation on the assets capitalised prior to
01.04.2025 and w.e.f 01.04.2025 separately as given in the tables below:

Table 5-104: Depreciation approved on assets capitalised prior to 01.04.2025 for MYT Control
Period (Rs. Crore)

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S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
1 Opening Gross Block 25,687.21 25,687.21 25,687.21 25,687.21 25,687.21
2 Net Additions during the Year - - - - -
3 Closing Gross Block 25,687.21 25,687.21 25,687.21 25,687.21 25,687.21
4 Average Gross Block 25,687.21 25,687.21 25,687.21 25,687.21 25,687.21
5 Depreciation for the Year (A) 1,145.45 1,145.45 1,145.45 1,145.45 1,145.45
6 Average Rate of Depreciation 4.46% 4.46% 4.46% 4.46% 4.46%

Table 5-105: Depreciation approved on assets capitalised w.e.f 01.04.2025 for MYT Control Period
(Rs. Crore)

S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
1 Opening Gross Block - 3,198.87 6,231.23 9,162.76 12,106.60
2 Net Additions during the Year 3,198.87 3,032.36 2,931.53 2,943.84 2,963.92
3 Closing Gross Block 3,198.87 6,231.23 9,162.76 12,106.60 15,070.52
4 Average Gross Block 1,599.44 4,715.05 7,697.00 10,634.68 13,588.56
5 Depreciation for the Year (B) 84.36 248.69 405.98 560.92 716.68
6 Average Rate of Depreciation 2.64% 5.27% 5.27% 5.27% 5.27%

Table 5-106: Depreciation approved for the MYT Control period (Rs. Crore)

S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
Depreciation on assets capitalised
1 1,145.45 1,145.45 1,145.45 1,145.45 1,145.45
prior to 01.04.2025
Depreciation on assets capitalised
2 84.36 248.69 405.98 560.92 716.68
w.e.f 10.04.2025
Total Depreciation for the Year
3 1,229.81 1,394.14 1,551.42 1,706.37 1,862.13
(A+B)

5.15 Interest on Loan, Interest on Security Deposit and Finance Charges

PGVCL has projected the interest on loan and finance charges as detailed in the table below:

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Table 5-107: Interest and Finance Charges projected for MYT Control Period (Rs. Crore)

S. FY FY FY FY FY
Particulars
No 2025-26 2026-27 2027-28 2028-29 2029-30
1 Opening Loans 1,152.02 - - - -
2 Loan Additions during the Year - - - - -
3 Repayment during the Year 1,152.02 - - - -
4 Closing Loans - - - - -
5 Average Loans 576.01 - - - -
6 Interest on Loan 54.12 - - - -
7 Interest on security deposit 222.33 226.64 228.88 239.58 266.96
8 Other Bank Charges 0.14 0.14 0.14 0.14 0.14
Total Interest & Finance
9 276.58 226.78 229.01 239.71 267.09
Charges
10 Average Interest on Loan 9.40% 9.40% 9.40% 9.40% 9.40%

Petitioner’s submission

PGVCL submitted that the interest expenditure on account of long-term loans depends on the
outstanding loan, repayments, and prevailing interest rates on the outstanding loans. Further, the
projected capital expenditure and the funding of the same also have a major bearing on the long-term
interest expenditure.

As per Regulation 33.1 of the GERC(MYT) Regulations 2024, the interest on loans shall be based
on the weighted average rate of interest of the actual loan portfolio. Accordingly, the rate of interest
for MYT Control Period is calculated using the weighted average rate of interest on the actual loan
portfolio for FY 2023-24, which is 9.40%. This approach ensures compliance with regulatory
provisions for calculating interest on loans for assets capitalized before April 1, 2025.

Under the GERC MYT Regulations 2024, the introduction of the Return on Capital Employed
(ROCE) approach has significantly influenced the methodology for calculating both interest on loans
and Return on Equity (ROE). ROCE is a comprehensive metric that considers the total cost of capital

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employed by the utility, which includes both debt and equity, rather than treating them independently.
Previously, interest on loan was calculated based solely on the outstanding loan balance and the
applicable interest rates. With the ROCE approach, the normative loan component of the capital
structure is directly integrated into the overall capital employed. Therefore, for the MYT Control
Period of FY 2025-26 to FY 2029-30 Interest on Finance Charges will be calculated on the normative
outstanding loan of Discom without any additions in FY 2025-26 to FY 2029-30.

Interest rate on Security deposit by consumers is taken at the RBI bank rate of 6.75%. Other bank
charges have been considered same as that of FY 2023-24.

Commission’s Analysis

The Commission has considered the closing normative loan as on 31st March, 2024 as approved for
FY 2023-24 as the opening normative loan for FY 2024-25. The Commission has considered the
additions as approved for FY 2024-25 in the order dated 1st June 2024 to arrive at the closing
normative loan for FY 2024-25, and the same is in turn considered as the opening normative loan as
on 1st April, 2025. The additions during FY 2025-26 are considered as zero, since the same shall be
part of the Return on Capital Employed. The Commission has considered Rate of Interest on Loans
as per the actual loan portfolio of the Petitioner.

The Commission had sought justification of interest on security deposit projected over the years
during the MYT control period from the Petitioner. PGVCL submitted that according to the RDSS
guidelines, the installation of smart meters removes the need for collecting security deposits from
consumers. This is because smart meters enable more accurate billing and real-time monitoring of
energy consumption, reducing the risk of payment defaults. As the smart meters are installed, the
company will gradually refund the security deposits that were previously collected from consumers.
This leads to a reduction in the overall pool of security deposits, which in turn reduces the interest
liabilities for the company.

Gujarat Electricity Regulatory Commission Page 305

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

The Commission accepts the justification provided by PGVCL and has considered the interest on
security deposit as submitted by it. Further, the Commission has considered the other bank/finance
charges for MYT Control Period at the level of actuals for FY 2023-24.

Considering all of the above, the Commission has computed the interest on loan, interest on security
deposit and finance charges for MYT Control Period, as detailed in the table below:

Table 5-108: Approved Interest on Loan, Interest on Security Deposit and Finance Charges for
MYT Control Period (Rs. Crore)

S. FY FY FY FY FY
Particulars
No 2025-26 2026-27 2027-28 2028-29 2029-30

1 Opening Loans
725.72 - - - -
2 Loan Additions during the Year

3 Repayment during the Year

725.72 - - - -

4 Closing Loans
- - - - -
5 Average Loans 362.86 - - - -
Weighted average rate of
6 12.21% 12.21% 12.21% 12.21% 12.21%
interest
Interest on Loan (on Assets 44.31 - - - -
7
capitalised up to 31.03.2025)
8 Interest on security deposit 222.33 226.64 228.88 239.58 266.96
9 Other Bank Charges 0.14 0.14 0.14 0.14 0.14
Total Interest & Finance 266.77 226.78 229.01 239.71 267.09
10
Charges

5.16 Interest on Working Capital

PGVCL has projected the interest on working capital for MYT Control Period, as detailed in the
table below:

Table 5-109: Interest on Working Capital projected for MYT Control Period (Rs. Crore)

Gujarat Electricity Regulatory Commission Page 306

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
1 O & M expenses 147.06 163.05 196.83 205.91 212.89
2 Maintenance Spares 262.80 294.79 325.11 354.43 383.86
3 Receivables 1476.05 1540.71 1608.56 1679.75 1754.45
Amount held as security
4 56.5 98.67 219.39 310.67 324.28
deposit
Amount held as security
5 deposit from Distribution 3,293.71 3,357.66 3,390.78 3,549.30 3,954.95
System Users, if any
6 Total Working Capital (1,464.30) (1,457.78) (1,479.68) (1,619.89) (1,928.02)
Rate of Interest on
7 10.65% 10.65% 10.65% 10.65% 10.65%
Working Capital
Interest on Working
8 - - - - -
Capital

Petitioner’s submission

PGVCL submits that the interest on working capital for the MYT Control Period from FY
2025-26 to FY 2029-30 has been calculated based on the normative working capital formula
provided by the Commission in the GERC MYT Regulations 2024.

As per Regulation 38.5 of the GERC MYT Regulations 2024, the Distribution
Licensee is allowed interest on the estimated level of working capital for each
financial year, computed as follows:

(i) Operation and Maintenance (O&M) expenses for one month;

(ii) Maintenance spares at 1% of the opening Gross Fixed Assets (GFA);
(iii) Receivables equivalent to one month of expected revenue from the sale
of electricity at prevailing tariffs;

(iv) Average monthly collection from Prepaid Consumers (to be

subtracted);

Gujarat Electricity Regulatory Commission Page 307

March 2025
Paschim Gujarat Vij Company Limited
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(v) Amount held as security deposits under clause (a) and clause (b) of
sub-section (1) of
Section 47 of the Act from consumers, except the security deposits held in the form of
Bank Guarantees (to be subtracted)

Further, as per Regulation 38.6.1, the interest on working capital is allowed at a

rate equal to the one-year State Bank of India (SBI) Marginal Cost of Funds
Based Lending Rate (MCLR), or any replacement thereof declared by SBI from
time to time, applicable for a one-year period. The rate applied is as on April 1st
of the financial year in which the petition is filed, plus an additional 200 basis
points.

Accordingly, PGVCL has assumed an interest rate of 10.65% for working capital,
considering the one-year SBI MCLR as on April 1, 2024, being 8.65%, plus an additional
200 basis points.

However, the security deposit held by PGVCL from consumers exceeds the total normative
working capital requirement, PGVCL is not projecting any interest on working capital for
the MYT Control Period from FY 2025-26 to FY 2029-30. The consumer security deposits
held are more than sufficient to meet the working capital needs, eliminating the necessity for
any interest-related financial obligations during the period.

Commission’s Analysis

The Commission has examined the computation of interest on working capital submitted by PGVCL.

The interest on working capital is calculated as per the provision of MYT Regulations 2024 para
38.4, 38.5 and 38.6 as reproduced below

38.4 Distribution Wires Business

Gujarat Electricity Regulatory Commission Page 308

March 2025
Paschim Gujarat Vij Company Limited
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Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

38.4.1 The Distribution Licensee shall be allowed interest on the estimated level of
working capital for the Distribution Wires Business for the financial year, computed as
follows:

(i) Operation and maintenance expenses for one month; plus

(ii) Maintenance spares at one (1) per cent of the opening Gross Fixed Assets; plus

(iii) Receivables equivalent to one (1) month of the expected revenue from charges for use
of Distribution Wires at the prevailing tariffs; minus

(iv) Amount, if any, held as security deposits under clause (b) of sub-section (1) of Section
47 of the Act from Distribution System Users except the security deposits held in the form
of Bank Guarantees:

Provided that at the time of truing up for any year, the working capital requirement shall
be recalculated on the basis of the values of components of working capital approved by
the Commission in the truing up before sharing of gains and losses;

38.5 Retail Supply of Electricity

38.5.1 The Distribution Licensee shall be allowed interest on the estimated level of
working capital for the financial year, computed as follows:

(i) Operation and maintenance expenses for one month; plus

(ii) Maintenance spares at one (1) per cent of the opening Gross Fixed Assets; plus

(iii) Receivables equivalent to one (1) month of the expected revenue from sale of
electricity at the prevailing tariffs; minus

(iv) Average monthly collection from Prepaid Consumers; minus

(v) Amount held as security deposits under clause (a) and clause (b) of sub-section (1) of
Section 47 of the Act from consumers except the security deposits held in the form of Bank
Guarantees:

Gujarat Electricity Regulatory Commission Page 309

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

Provided that for the purpose of Truing-up, the Receivables shall be computed based on
the actual revenue from sale of electricity net of revenue from pre-paid consumers;

Provided further that at the time of truing up for any year, the working capital requirement
shall be re-calculated on the basis of the values of components of working capital
approved by the Commission in the truing up before sharing of gains and losses.

38.6 Rate of interest on Working Capital

38.6.1 Interest on working capital shall be allowed at a rate equal to the one year State
Bank of India (SBI) Marginal Cost of Funds Based Lending Rate (MCLR) or any
replacement thereof declared by SBI from time to time being in effect applicable for 1
year period, as applicable as on 1st April of the financial year in which the Petition is
filed plus 200 basis points:

Provided that at the time of truing up for any year, interest on working capital shall be
allowed at a rate equal to the weighted average of one year SBI MCLR or any replacement
thereof by SBI from time to time being in effect applicable for 1 year period, as applicable
prevailing during the financial year plus 200 basis points.

State Bank Base Rate as on 1st April 2024 was 8.65% and accordingly after adding the spread of 200
basis points, the applicable interest rate comes out to be 10.65%. Based on the approved O&M
expenses and GFA, the Commission has computed the working capital and interest on working
capital, as detailed in the table below.

Table 5-110: Approved Interest on Working Capital for MYT Control Period (Rs. Crore)

S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
1 O & M expenses 144.48 159.63 192.66 201.08 209.78
2 Maintenance Spares 256.87 288.86 319.18 348.50 377.94
3 Receivables 1,476.05 1,540.71 1,608.56 1,679.75 1,754.45
Amount held as security
4 56.50 98.67 219.39 310.67 324.28
deposit

Gujarat Electricity Regulatory Commission Page 310

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
Amount held as security
5 deposit from Distribution 3,293.71 3,357.66 3,390.78 3,549.30 3,954.95
System Users, if any
6 Total Working Capital (1,472.80) (1,467.13) (1,489.77) (1,630.65) (1,937.06)
Rate of Interest on
7 10.65% 10.65% 10.65% 10.65% 10.65%
Working Capital
Interest on Working
8 - - - - -
Capital

The Commission, accordingly, approves nil interest on working capital as detailed in the table above
for the MYT Control Period.

5.17 Return on Equity

PGVCL has projected the Return on Equity for the MYT Control Period, as detailed in the table
below:

Table 5-111: Return on Equity projected for MYT Control Period (Rs. Crore)
FY FY FY FY FY
S. No. Particulars
2025-26 2026-27 2027-28 2028-29 2029-30
1 Opening Equity Capital 5,697.41 5,697.41 5,697.41 5,697.41 5,697.41
2 Additions during the year - - - - -
3 Closing Equity 5,697.41 5,697.41 5,697.41 5,697.41 5,697.41
4 Average Equity 5,697.41 5,697.41 5,697.41 5,697.41 5,697.41
5 Rate of Return on the Equity 13% 13% 13% 13% 13%
6 Return on Equity 740.66 740.66 740.66 740.66 740.66

Gujarat Electricity Regulatory Commission Page 311

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

Petitioner’s submission

PGVCL submitted that the closing balance of equity for FY 2023-24 calculated in this Petition is
taken as opening balance of FY 2024-25. Addition during FY 2024-25 is considered same as
approved by the Commission in its Tariff Order dated 1st June 2024 to work out closing balance of
FY 2024-25. Closing balance of FY 2024-25 thus work out has been considered as opening balance
of equity for FY 2025-26.

The equity addition for FY 2025-26 has been arrived at by considering 30% of the Capitalization net
of consumer contribution and grants as funded from equity as already explained above.

PGVCL has submitted that as per Regulation 35.1 of the GERC MYT Regulations 2024, the
maximum Return on Equity (ROE) allowed on the equity capital determined in accordance with
Regulation 32 for the assets put to use is:

• Up to 15.50% per annum in Indian Rupee terms for the Generating Company and Retail Supply
Business.
• Up to 15.00% per annum in Indian Rupee terms for the Transmission Licensee, SLDC, and
Distribution Wires Business.

PGVCL has further submitted that the regulation also stipulates that the Return on Equity shall be
allowed in two parts, Base Return on Equity and Additional Return on Equity linked to actual
performance. This ensures that the base rate of return is guaranteed, while an additional return can
be earned based on the company's operational performance. Accordingly, PGVCL has considered a
13% base return on equity for the MYT Control Period from FY 2025-26 to FY 2029-30, as per the
provisions in Regulation 35. This return is calculated based on the equity capital determined in
accordance with Regulation 32 for assets that were put to use before April 1, 2025. It is noted that
the ROE is applicable only for assets put to use before April 1, 2025. For assets that are capitalized
on or after April 1, 2025, the Return on Capital Employed (RoCE) approach shall be used to provide
a return on those assets. The RoCE approach considers both debt and equity, thereby integrating the
total cost of capital employed

Gujarat Electricity Regulatory Commission Page 312

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

In line with the regulatory approach, no additional equity has been considered for the period from
FY 2025-26 to FY 2029-30. The Return on Equity has been calculated solely on the 13% base rate
for assets put to use prior to April 1, 2025.

Commission’s Analysis

The Commission has considered the closing balance of equity approved for FY 2023-24 as opening
balance of FY 2024-25. Addition during FY 2024-25 is considered same as approved by the
Commission in its Tariff Order dated 1st June 2024 to work out closing balance of FY 2024-25.
Closing balance of FY 2024-25 thus work out has been considered as opening balance of equity for
FY 2025-26.

Regarding the rate of return on equity, reliance is placed on Regulation 35 of the MYT Regulations
2024 which is reproduced below:

35 Return on Equity

35.1 Maximum Return on Equity that shall be allowed on the equity capital determined in
accordance with Regulation 32 of these Regulations for the assets put to use for the
Generating Company and Retail Supply Business up to the rate of 15.50% per annum in
Indian Rupee terms and for Transmission Licensee, SLDC and Distribution Wires
Business, up to the rate of 15.00% per annum in Indian Rupee terms:

Provided that Return on Equity shall be allowed in two parts viz. Base Return on Equity,
and Additional Return on Equity linked to actual performance:

Provided further that Additional Return on Equity shall be trued-up for respective year
based on actual performance substantiated by documentary evidence, after prudence
check by the Commission.

Provided further that the Commission may conduct a third-party verification of the
performance parameters based on which the additional Return on Equity is being
allowed.

Gujarat Electricity Regulatory Commission Page 313

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

35.2 Base Return on Equity of 13.00% per annum in Indian Rupee terms shall be allowed
on the equity capital determined in accordance with Regulation 32 of these Regulations
for the assets put to use:

Provided that in case Generating Company or Transmission Licensee or SLDC or

Distribution Licensee claims Return on Equity at a rate lower than the normative rate
specified above for any particular year, then such claim for lower Return on Equity shall
be unconditional:

Provided further that such claim for lower Return on Equity shall be allowed subject to
the condition that the reduction in Return on Equity shall be foregone permanently for
that year and shall not be allowed to be recouped at the time of Mid-Term Review or true-
up as applicable.

35.3 The Base Return on Equity shall be computed in the following manner:

(a) Return at the allowable rate as per this Regulation, applied on the amount of equity
capital at the commencement of the Year; plus

(b) Return at the allowable rate as per this Regulation, applied on 50 per cent of the equity
capital portion of the allowable capital cost, for the investments put to use in Generation
Business or Transmission Business or Distribution Business or SLDC, for such year.

The Commission has accordingly considered zero additions to the equity during MYT Control Period
as the same shall be part of the Return on Capital Employed (ROCE) component as per Regulation
36 of MYT Regulations 2024. The base rate of return on equity @ 13.00% has been considered on
the average equity for the MYT Control Period.

Further, in line with Regulation 39 of MYT Regulations 2024, the Commission has worked out the
tax rate to gross up the rate of return on equity to account for the income tax to the licensee for the
regulated business as 17.08%, which is the actual income tax rate for the Petitioner.

The return on equity approved for the MYT Control Period is shown in the table below:

Gujarat Electricity Regulatory Commission Page 314

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

Table 5-112: Approved Return on Equity for MYT Control Period on assets capitalised up to
31.03.2025 (Rs. Crore)
FY FY FY FY FY
S. No. Particulars
2025-26 2026-27 2027-28 2028-29 2029-30
1 Opening Equity Capital 5,502.64 5,502.64 5,502.64 5,502.64 5,502.64
2 Additions during the year - - - - -
3 Closing Equity 5,502.64 5,502.64 5,502.64 5,502.64 5,502.64
4 Average Equity 5,502.64 5,502.64 5,502.64 5,502.64 5,502.64
5 Base Rate of Return on Equity 13.00% 13.00% 13.00% 13.00% 13.00%
6 Effective Tax Rate 17.08% 17.08% 17.08% 17.08% 17.08%
Post-tax Rate of Return on
7 15.68% 15.68% 15.68% 15.68% 15.68%
Equity (5/(1-6))
8 Return on Equity 862.68 862.68 862.68 862.68 862.68

It is to be noted that Accumulated Depreciation, in excess of Normative Debt., if any remains unaccounted
is required to be adjusted in the Equity Structure. The Petitioner is directed to come up with all such details
required to give treatment as narrated above in the true up of FY 2025-26.

5.18 Additional Rate of Return on Equity

Regulation 35 of the MYT Regulations 2024, as discussed in the preceding section, provides for
Return on Equity in two parts viz. Base Return on Equity and Additional Return on Equity linked to
actual performance. Provided further that Additional Return on Equity shall be trued-up for
respective year based on actual performance substantiated by documentary evidence, after prudence
check by the Commission.

The Regulation specifies the parameters for which additional rate of RoE shall be admissible for all
businesses like Generation, Transmission, SLDC and Distribution (Wires & Retail Supply).

Distribution Wires Business

Gujarat Electricity Regulatory Commission Page 315

March 2025
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Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

Regulation 35.11 details the parameters and conditions for availing additional Rate of RoE for
Distribution Wires business. The parameters considered for Distribution Wires business are
summarised below:

Table 5-113: Parameters for additional RoE for Wires business

Parameters Ceiling limit of Additional RoE

Wires Availability 0.50%

Distribution Loss 0.50%

Distribution Transformer Failure Rate 0.25%

Feeder / DT Smart Metering 0.25%

Automated Data Capture 0.25%

Geo-tagging of assets 0.25%

Maximum allowable Additional rate
2.00%
of RoE

Wires Availability:

The Target Wires Availability for recovery of Base RoE has been set at 96.00% for state government
owned Distribution Licensees and 97.00% for other Distribution Licensees.

An additional RoE of 0.25% shall be allowed for every 0.50% over-achievement in wires availability,
subject to 0.50% ceiling rate of RoE. Where the wires availability shall be calculated as per following
formula:

Wires availability calculation = (1 - (SAIDI / 8760)) x 100

Where, System Average Interruption Duration Index (SAIDI) shall be calculated in accordance with
the definition specified in GERC (Standards of Performance of Distribution Licensees, Period for
Giving Supply and Determination of Compensation) Regulations, 2005, as amended from time to
time.

Gujarat Electricity Regulatory Commission Page 316

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Distribution Loss:

An additional rate of Return on Equity shall be allowed up to ceiling limit of 0.50% to Distribution
Licensees for reducing distribution loss levels beyond loss trajectory provided by the Commission
as per the following schedule:

• Additional RoE of 0.50%, for reducing loss by more than 10.00% of target loss.
• Additional RoE of 0.30%, for reducing loss by more than 5.00% & up to 10.00% of target loss.
• Additional RoE of 0.10%, for reducing loss up to 5.00% of target loss.
Distribution Transformer Failure Rate:

An additional rate of Return on Equity shall be allowed up to ceiling limit of 0.25% to Distribution
Licensees for reduction in DT failure rate as per the following schedule:

• Additional RoE of 0.10%, for achieving reduction by at least 10% from the previous year.
• Additional RoE of 0.15%, for achieving reduction by at least 15% from the previous year.
• Additional RoE of 0.25%, for achieving reduction by at least 20% from the previous year.
Feeder / DT Smart Metering:

An additional rate of Return on Equity shall be allowed up to ceiling limit of 0.25% to Distribution
Licensees for installation of Feeder / DT Smart Meters as per the following schedule:

• Additional RoE of 0.10%, for achieving installation of Smart Meters on 100% of 11 kV/ 33 kV
feeders as on dated of filing of True up petition for respective year.
• Additional RoE of 0.25%, for achieving installation of Smart Meters on 100% of DTs as on date
of filing of True up petition for respective year.
DISCOM to ensure that post achievement of 100% smart metering, only smart meters shall be
allowed to be installed for new DTs and Feeders. DISCOM will also prepare Energy Audit Reports
on an annual basis for each DT and Feeder and keep it for the record, as and when sought by the
Commission.

Automated Data Capture:

Gujarat Electricity Regulatory Commission Page 317

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An additional rate of Return on Equity shall be allowed up to ceiling limit of 0.25% to Distribution
Licensees for capturing data directly from the feeder monitoring system or a suitable system to
capture data for a ring main system without any manual intervention, as per Regulation 5.3 of the
GERC (Standards of Performance of Distribution Licensees) Regulations, 2023.

Geo-tagging of assets:

An additional rate of Return on Equity of 0.25% shall be allowed to the Distribution Licensees for
achieving geo-tagging of assets as per the following schedule:

• Additional RoE of 0.25% in the first year of the MYT Control period, for initiating the work of
geo-tagging which shall be evaluated by successful implementation of steps like calling of an
NIT, issuing of tender and awarding of contract.
• Additional RoE of 0.25% in the second year of the MYT Control period, for completion of geo-
tagging on 25% of the distribution network.
• Additional RoE of 0.25% in the third year of the MYT Control period, for completion of geo-
tagging on 50% of the distribution network.
• Additional RoE of 0.25% in the fourth year of the MYT Control period, for completion of geo-
tagging on 75% of the distribution network.
• Additional RoE of 0.25% in the fifth year of the MYT Control period, for completion of geo-
tagging on 100% of the distribution network.
Retail Supply Business

Regulation 35.12 details the parameters and conditions for availing additional Rate of RoE for Retail
Supply business. The parameters considered for Retail Supply business are summarised below:

Table 5-114: Parameters for additional RoE for Retail Supply business

Parameters Ceiling limit of Additional RoE

Percentage of assessed bills over total
0.50%
bills
Meeting RPO Trajectory targets 0.10%

Gujarat Electricity Regulatory Commission Page 318

March 2025
Paschim Gujarat Vij Company Limited
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Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

Parameters Ceiling limit of Additional RoE

CGRF performance 0.30%

Setting of CRM Centres 0.85%

Reduction in accidents 0.40%

Reduction in DSM/ UI 0.35%

Maximum allowable Additional rate
2.50%
of RoE

Percentage of assessed bills:

An additional rate of Return on Equity shall be allowed up to ceiling limit of 0.50% to Distribution
Licensees for reduction in percentage of assessed bills (due to reasons beyond unmetered &
inaccessible connection) over total bills as per the following schedule:

• Additional RoE of 0.20%, for %age of assessed bills between 3% to 5%.

• Additional RoE of 0.35%, for %age of assessed bills between 1% to 3%.
• Additional RoE of 0.50%, for %age of assessed bills less than 1%.

Meeting RPO Trajectory Targets:

An additional rate of Return on Equity shall be allowed up to ceiling limit of 0.10% to Distribution
Licensees for achieving RPO as per the applicable Regulations, from time to time.

CGRF Performance:

An additional rate of Return on Equity shall be allowed up to ceiling limit of 0.30% to Distribution
Licensees for efficacy in dispute resolution / complaint handling as per the following schedule:

• Additional RoE of 0.10%, if %age of disputes resolved within 30 days of application is more
than 95%.

Gujarat Electricity Regulatory Commission Page 319

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• Additional RoE of 0.20%, if %age of disputes where decision of CGRF / Ombudsman is timely
implemented (within stipulated time in the respective Order) is more than 95%.
Data for above both parameters as certified by the Electricity Ombudsman shall be considered by the
Commission for allowing additional RoE for the True up years.

CRM System:

An additional rate of Return on Equity shall be allowed up to ceiling limit of 0.85% to Distribution
Licensees for providing all services through a common Customer Relation Manager (CRM) System
with all provisions, as per Regulation 3.6 of the GERC (Standards of Performance of Distribution
Licensees) Regulations, 2023.

Reduction in accidents:

An additional rate of Return on Equity shall be allowed up to ceiling limit of 0.40% to Distribution
Licensees for reduction in accidents in the Distribution Licensee’s network as per the following
schedule:

• Additional RoE of 0.10%, if there is reduction by 5% from the previous year.

• Additional RoE of 0.20%, if there is reduction by 10% from the previous year.
• Additional RoE of 0.40%, if there is reduction by 15% from the previous year.
For claiming additional RoE on this performance parameter, accident data of the true up year and
previous years as certified by the Chief Electrical Inspector of Gujarat State shall be considered by
the Commission.

Reduction in DSM / UI:

An additional rate of Return on Equity of 0.35% shall be allowed to Distribution Licensees for
maintaining the DSM/ UI in terms of energy upto maximum of 3.00%

Gujarat Electricity Regulatory Commission Page 320

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Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

The Commission may require the Distribution Licensee to substantiate their claim for additional RoE
by any documentary evidence, consumer satisfaction survey, third party audit report etc. as it may
deem fit.

In view of the above, the Distribution Licensees of the state have the option to earn more return on
equity on the basis of their performance with respect to above discussed parameters. This shall be
assessed every year starting from the true up of first year of the MYT Control Period.

5.19 Return on Capital Employed

PGVCL has projected the Return on Capital Employed for the MYT Control Period, as detailed in
the table below:

Table 5-115: Return on Capital Employed projected for MYT Control Period (Rs. Crore)

S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
Original Costs of Fixed Assets
1 0 2036.87 4875.33 7544.13 10216.97
(OCFA)
Accumulated Depreciation (net of
2 0 84.50 333.59 740.21 1302.02
assets decapitalized)
3 RRB Opening 0 1952.37 4541.74 6803.92 8914.95
Assets Capitalization during the
4 3,198.87 3,032.36 2,931.53 2,943.84 2,963.92
year
Depreciation during the year (net of
5 Assets decapitalized during the 84.50 249.09 406.62 561.82 717.82
year)
Consumer Contributions, capital
6 1,162.00 193.90 262.73 271.00 281.00
subsidy/grant during the year
7 Assets decapitalized during the year - - - - -
8 RRB Closing 1,952.37 4,541.74 6,803.92 8,914.95 10,880.04
9 RRB Average 976.19 3,289.31 5,839.63 8,229.54 10,548.51
Consumer Contributions, capital
10 subsidy/grant at the beginning of the - - - - -
year
11 Equity (Opening) 0.00 585.71 1362.52 2041.18 2674.48

Gujarat Electricity Regulatory Commission Page 321

March 2025
Paschim Gujarat Vij Company Limited
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Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
12 Equity (Addition) 585.71 776.81 678.65 633.31 589.53
13 Equity (Closing) 585.71 1362.52 2041.18 2674.48 3264.01
14 Equity (Average) 292.86 974.12 1701.85 2357.83 2969.25
15 Debt (Opening) 0.00 1366.66 3179.22 4762.75 6240.46
16 Debt (Addition) 1366.66 1812.56 1583.52 1477.72 1375.57
17 Debt (Closing) 1366.66 3179.22 4762.75 6240.46 7616.03
18 Debt (Average) 683.33 2272.94 3970.98 5501.60 6928.25
19 Rate of Return on Equity (%) 13% 13% 13% 13% 13%
20 Rate of Interest on Debt (%) 9.40% 9.40% 9.40% 9.40% 9.40%
21 WACC (%) 10.48% 10.48% 10.48% 10.48% 10.48%
22 Return on Capital Employed 102.27 344.61 611.80 862.18 1,105.13

Petitioner’s submission

PGVCL has submitted that as per Regulation 38 of the GERC MYT Regulations 2024, the Return
on Capital Employed (RoCE) is calculated based on the following methodology:

• Regulated Rate Base (RRB) shall be used to calculate the total capital employed. The RRB
includes the Original Cost of Fixed Assets (OCFA) capitalized on or after April 1, 2025.
• Accumulated depreciation, consumer contributions, and capital subsidies/grants attributable to
the fixed assets capitalized on or after April 1, 2025 shall be deducted in arriving at the RRB.
• For the first year of the Control Period, the Opening Regulated Rate Base (RRB₀) shall be zero,
indicating that only newly capitalized assets after April 1, 2025 are considered under the RoCE
framework.

Accordingly, as per Regulation 38 of the GERC MYT Regulations 2024, the Return on Capital
Employed has been calculated based on the rate of return on equity at 13% for assets projected to be
capitalized during the period from April 1, 2025 to March 31, 2030.

Gujarat Electricity Regulatory Commission Page 322

March 2025
Paschim Gujarat Vij Company Limited
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Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

Furthermore, the interest on loans has been considered at 9.40%, consistent with the interest rate
used in the True-Up year of FY 2023-24.

Commission’s analysis

Regulation 36 of the MYT Regulations 2024 provides for Return on Capital Employed (RoCE) for
assets that are capitalised on or after April 01, 2025. The RoCE approach shall be used to provide a
return to the utility and shall cover all financing costs except expenses for availing the loans, without
providing separate allowances for interest on loans.

The Commission has scrutinised the calculation of PGVCL in respect of RoCE. While calculating
the closing Regulated Rate Base for the year, PGVCL has deducted the full depreciation amount for
the year. The Commission has considered net amount of depreciation excluding depreciation on
assets funded via government grants and consumer contribution. Further, PGVCL has not considered
the post-tax rate of Return on Equity while calculating the Weighted Average Cost of Capital
(WACC) for each year of the control period. The Commission has considered the post-tax rate Return
on Equity as approved for the Return on Equity on assets capitalised w.e.f. 01.04.2025

Taking into account the above, the Commission has computed the RoCE as tabulated as following:

Table 5-116: Return on Capital Employed approved on assets capitalised w.e.f 01.04.2025 for MYT
Control Period (Rs. Crore)

S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
1 RRB Opening - 1,983.15 4,583.15 6,859.83 8,986.04
Assets Capitalization during the
2 3,198.87 3,032.36 2,931.53 2,943.84 2,963.92
year
Depreciation during the year (net of
Assets decapitalized during the year
3 and net of depreciation on account of 53.72 238.47 392.12 546.63 701.86
Govt Grant and Consumer
Contribution)
Consumer Contributions, capital
4 1,162.00 193.90 262.73 271.00 281.00
subsidy/grant during the year

Gujarat Electricity Regulatory Commission Page 323

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
5 Assets decapitalized during the year
6 RRB Closing (1+2-3-4-5) 1,983.15 4,583.15 6,859.83 8,986.04 10,967.10
7 RRB Average ((1+6)/2) 991.58 3,283.15 5,721.49 7,922.93 9,976.57
Consumer Contributions, capital
8 subsidy/grant at the beginning of the
year
9 Equity (Opening) (30%*(1-8)) - 594.95 1,374.94 2,057.95 2,695.81
10 Equity (Addition) (30%*(2-3-4-5)) 594.95 780.00 683.00 637.86 594.32
11 Equity (Closing) (9+10) 594.95 1,374.94 2,057.95 2,695.81 3,290.13
12 Equity (Average) ((9+11)/2) 297.47 984.94 1,716.45 2,376.88 2,992.97
13 Debt (Opening) (70%*(1-8)) - 1,388.21 3,208.20 4,801.88 6,290.23
14 Debt (Addition) (70%*(2-3-4-5)) 1,388.21 1,820.00 1,593.68 1,488.35 1,386.74
15 Debt (Closing) (13+14) 1,388.21 3,208.20 4,801.88 6,290.23 7,676.97
16 Debt (Average) ((13+15)/2) 694.10 2,298.20 4,005.04 5,546.05 6,983.60
Post-tax Rate of Return on Equity
17 15.68% 15.68% 15.68% 15.68% 15.68%
(%)
18 Rate of Interest on Debt (%) 12.21% 12.21% 12.21% 12.21% 12.21%
19 WACC (%) 13.25% 13.25% 13.25% 13.25% 13.25%
20 Return on Capital Employed 131.39 435.03 758.12 1,049.82 1,321.94

5.20 Contribution to Contingency Reserve

Petitioner’s submission

PGVCL submitted that in accordance with Clause 93.1 of the GERC (Multi-Year Tariff)
Regulations, 2024, the Distribution Licensee is entitled to make an appropriation to the
Contingency Reserve, not exceeding 0.5% of the original cost of fixed assets at the beginning of
the year, for each year.

PGVCL has submitted the Contribution to Contingency Reserve as under:

Gujarat Electricity Regulatory Commission Page 324

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

Table 5-117: Contribution to Contingency Reserve for MYT Control Period

MYT Control Period
FY 2025- FY 2026- FY 2027- FY 2028- FY 2029-
Sr.
Particulars 26 27 28 29 30
No.
Projected Projected Projected Projected Projected

Opening Balance of
1 0 131.4 147.39 162.56 177.21
Contingency Reserves

2 Opening Gross Fixed Assets 26279.81 29478.68 32511.04 35442.57 38386.41

Opening Balance of
3 Contingency Reserves as % of 0% 0% 0% 0% 0%
Opening GFA
Contribution to Contingency
4 131.4 147.39 162.56 177.21 191.93
Reserves during the year
Utilisation of Contingency
5
Reserves during the year
Closing Balance of
6 131.4 278.79 309.95 339.77 369.14
Contingency Reserves
Closing Balance of
7 Contingency Reserves as % of 0.50% 0.95% 0.95% 0.96% 0.96%
Opening GFA

Commission’s Analysis

Regulation 93 of the MYT Regulations, 2024 specify that the Licensee may make an appropriation
to the Contingency Reserve of a sum not exceeding 0.5 per cent of the original cost of fixed assets
at the beginning of the year, for each year, which shall be allowed in the calculation of aggregate
revenue requirement, subject to maximum limit of 5% of the original cost of fixed assets.

The Commission has therefore calculated the amount of contribution to Contingency Reserve as per
the GFA approved in this Tariff Order and the same is tabulated below:

Gujarat Electricity Regulatory Commission Page 325

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

Table 5-118: Contribution to Contingency Reserve approved for MYT Control Period (Rs. Crore)

S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
Opening Balance of
1 - - - - -
Contingency Reserves

2 Opening Gross Fixed Assets 25,687.21 28,886.08 31,918.44 34,849.97 37,793.81

Opening Balance of
3 Contingency Reserves as % of 0.00% 0.00% 0.00% 0.00% 0.00%
Opening GFA

Contribution to Contingency
4 128.44 144.43 159.59 174.25 188.97
Reserves during the year

Utilisation of Contingency
5 - - - - -
Reserves during the year
Closing Balance of
6 128.44 144.43 159.59 174.25 188.97
Contingency Reserves
Closing Balance of
7 Contingency Reserves as % of 0.50% 0.50% 0.50% 0.50% 0.50%
Opening GFA

5.21 Provision for Bad and Doubtful Debts

PGVCL has projected provision for bad and doubtful debts. as under:

Particulars FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30

Provision for debts 1.16 1.16 1.16 1.16 1.16

Petitioner’s submission

PGVCL has submitted that Provision for bad & doubtful debts is considered same as actuals of FY
2023-24. It is a very legitimate expenditure which is associated with the business risk and is a

Gujarat Electricity Regulatory Commission Page 326

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

consumer related expense as PGVCL is in a distribution business. PGVCL accordingly, has projected
Provision for Bad & Doubtful Debts for MYT Control Period.

Commission’s analysis

The Commission has considered the approach of PGVCL and hereby approves the following as
provision for bad & doubtful debts for the MYT Control Period.

Particulars FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30

Provision for debts 1.16 1.16 1.16 1.16 1.16

5.22 Income Tax

Petitioner’s submission

PGVCL has submitted that income tax for MYT Control has been taken as per the actual income tax
rate calculated over Net Income of Company in FY 2023-24 as per Annual Audited Accounts and
has been projected for MYT Control Period as tabulated below:

Table 5-119: Income Tax Projected for MYT Control Period (Rs. Crore)

Particulars FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30

Income Tax 294.52 379.19 472.55 560.03 644.92

Commission’s Analysis

Regulation 39 of MYT Regulations, 2024 specifies that the income tax for a utility shall be allowed
on Return on Equity and that the rate of Return on Equity shall be grossed up with the effective tax
rate of respective financial year.

The Commission has already considered the post-tax rate of Return on Equity while approving the
Return on Equity (for assets capitalised prior to 01.04.2025) and Return on Capital Employed (on

Gujarat Electricity Regulatory Commission Page 327

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

assets capitalised w.e.f 01.04.2025). Therefore, the impact of the same has already been considered
and is not allowed as a separate expense here.

5.23 Non-Tariff Income

Petitioner’s submission

PGVCL has considered the Non-Tariff Income for the MYT Control Period same as actual
figures of FY 2023-24 as shown below:

Table 5-120: Non-Tariff Income projected for MYT Control Period (Rs. Crore)

Particulars FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30

Non-Tariff Income 350.82 350.82 350.82 350.82 350.82

Commission’s Analysis

The Commission has approved the Non-Tariff Income for the MYT Control Period as approved in
true up of FY 2023-24 and the same is shown in the table below:

Table 5-121: Approved Non-Tariff Income for MYT Control Period (Rs. Crore)

Particulars FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30

Non-Tariff Income 384.97 384.97 384.97 384.97 384.97

5.24 ARR for MYT Control Period FY 2025-26 to FY 2029-30

Petitioner’s submission

The ARR projected by PGVCL for MYT Control Period is detailed in the table below:

Table 5-122: Projected ARR for MYT Control Period (Rs. Crore)

Gujarat Electricity Regulatory Commission Page 328

March 2025
Paschim Gujarat Vij Company Limited
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Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
Total Cost of Power
1 22,965.28 24,045.04 24,928.91 25,308.84 25,449.46
Purchase
Operation & Maintenance
2 1,764.68 1,956.62 2,361.90 2,470.97 2,554.73
Expenses
2a Employee Expense 1,253.55 1,312.03 1,373.24 1,437.30 1,504.35
2b A&G Expense 267.70 280.19 293.26 306.94 321.26
2c R&M Expense 435.25 488.23 538.45 587.00 607.42
2d RDSS Metering Opex 145.29 229.02 526.26 526.26 526.26
2e Other Expenses Capitalised (337.12) (352.85) (369.31) (386.54) (404.57)
3 Depreciation 1,470.83 1,634.85 1,792.39 1,947.58 2,103.49
4 Interest & Finance Charges 276.58 226.78 229.01 239.71 267.09
5 Interest on Working Capital - - - - -
6 Bad Debts written off 1.16 1.16 1.16 1.16 1.16
Contribution to Contingency
7 131.40 147.39 162.56 177.21 191.93
Reserves
8 Total Revenue Expenditure 26,609.92 28,011.85 29,475.92 30,145.48 30,567.86
9 Return on Equity 740.66 740.66 740.66 740.66 740.66
10 Return on Capital Employed 102.27 344.61 611.80 862.18 1,105.13
11 Income Tax 294.52 379.19 472.55 560.03 644.92
Aggregate Revenue
12 27,747.38 29,476.31 31,300.93 32,308.35 33,058.56
Requirement
13 Less: Non-Tariff Income 350.82 350.82 350.82 350.82 350.82
Aggregate Revenue
14 27,396.56 29,125.49 30,950.11 31,957.53 32,707.74
Requirement

Commission’s Analysis

The Commission has analysed the components of ARR in the foregoing paragraphs and approved
ARR for MYT Control Period as summarised in the table below:

Gujarat Electricity Regulatory Commission Page 329

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

Table 5-123: Approved ARR for MYT Control period (Rs. Crore)
S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
1 Cost of Power Purchase 21,684.44 22,915.32 23,199.54 24,040.77 25,079.89
Operation & Maintenance
2 1,733.74 1,915.54 2,311.90 2,412.96 2,517.37
Expenses
2a Employee Cost 1,396.34 1,462.80 1,532.44 1,605.38 1,681.80
Administration & General
2b 237.84 249.16 261.02 273.44 286.46
Charges
2c Repair & Maintenance 292.02 328.38 362.86 396.18 429.65
2d RDSS Metering Opex 145.29 229.02 526.26 526.26 526.26
Other Expenses
2e (337.75) (353.82) (370.67) (388.31) (406.79)
Capitalised
Depreciation (On assets
3a capitalised prior to 1,145.45 1,145.45 1,145.45 1,145.45 1,145.45
01.04.2025)
Depreciation (On assets
3b 84.36 248.69 405.98 560.92 716.68
capitalised w.e.f 01.04.2025)
3 Total Depreciation 1,229.81 1,394.14 1,551.42 1,706.37 1,862.13
Interest on Loans (On assets
4a capitalised prior to 44.31 - - - -
01.04.2025)
4b Interest on Security Deposit 222.33 226.64 228.88 239.58 266.96
4c Other Finance Charges 0.14 0.14 0.14 0.14 0.14
4 Interest & Finance Charges 266.77 226.78 229.01 239.71 267.09
5 Interest on Working Capital - - - - -
6 Provision for Bad Debts 1.16 1.16 1.16 1.16 1.16
Contribution to Contingency
7 128.44 144.43 159.59 174.25 188.97
Reserve
Total Revenue Expenditure
8 25,044.35 26,597.36 27,452.63 28,575.22 29,916.62
[1 to 7]
Return on Equity (On assets
9 capitalised prior to 862.68 862.68 862.68 862.68 862.68
01.04.2025)

Gujarat Electricity Regulatory Commission Page 330

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
Return on Capital Employed
10 (On assets capitalised w.e.f 131.39 435.03 758.12 1,049.82 1,321.94
01.04.2025)
11 Total Expenditure (8 to 10) 26,038.42 27,895.08 29,073.43 30,487.73 32,101.24
12 Less: Non-Tariff Income 384.97 384.97 384.97 384.97 384.97
Aggregate Revenue
13 25,653.45 27,510.11 28,688.46 30,102.76 31,716.27
Requirement (11 - 12)

Gujarat Electricity Regulatory Commission Page 331

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

6. Revenue (Gap)/Surplus for FY 2025-26

6.1 Revenue for FY 2025-26 with Existing Tariff

PGVCL has projected the category-wise revenue from existing Tariff for FY 2025-26, as shown in
the Table below:

Table 6-1: Revenue at Existing Tariff for FY 2025-26 (Rs. Crore)

S. No. Particulars Revenue excluding FPPPA

A LT Consumers
1 RGP 1,612
2 GLP 92
3 Non-RGP & LTMD 2,934
4 Public Water Works 323
5 Agriculture-Unmetered 677
6 Agriculture-Metered 502
7 Electric Vehicle Charging 1
LT Total (A) 6,141
B HT Consumers
8 Industrial HT 10,736
9 Railway Traction -
10 Electric Vehicle Charging 4
HT Total (B) 10,741
Grand Total (A + B) 16,881

Petitioner’s submission

PGVCL has projected revenue from existing Tariff for FY 2025-26 by considering projected sales
and existing Tariff, as Rs. 16,881 Crore.

Gujarat Electricity Regulatory Commission Page 332

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

Commission’s Analysis

The Commission has approved the category-wise sales for FY 2025-26, as discussed in the preceding
section and considering the existing retail tariff, the Commission has computed the revenue from
sale of power for FY 2025-26 as Rs 16,881 Crore, as shown in the table below:

Table 6-2: Approved Revenue at Existing Tariff for FY 2025-26 (Rs. Crore)
Revenue excluding
S. No. Particulars
FPPPA
A LT Consumers
1 RGP 1,612
2 GLP 92
3 Non-RGP & LTMD 2,934
4 Public Water Works 323
5 Agriculture-Unmetered 677
6 Agriculture-Metered 502
7 Electric Vehicle Charging 1
LT Total (A) 6,141
B HT Consumers
8 Industrial HT 10,736
9 Railway Traction -
10 Electric Vehicle Charging 4
HT Total (B) 10,741
Grand Total (A + B) 16,881

6.2 Revenue from FPPPA Charges

The petitioner has estimated revenue from FPPPA charges for FY 2025-26, as detailed in the Table
below:

Table 6-3: Revenue from FPPPA Charges for FY 2025-26 (Rs. Crore)

Gujarat Electricity Regulatory Commission Page 333

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

S. No. Particulars FY 2025-26

1 Projected Sales (MUs ) 40,048.65

2 FPPPA Rate (Rs./kWh) 2.75
3 Revenue from FPPPA (Rs. Crore) 11,013.38

Petitioner’s submission

PGVCL submitted that in the Order for True up for FY 2022-23 and Determination of Tariff for FY
2024-25 dated 1st June, 2024, the Commission has considered the base power purchase cost at Rs.
5.32/unit and base FPPPA at Rs. 2.77/unit. As per approved FPPPA formula, any increase in power
purchase cost during the year, over and above base power purchase cost of Rs. 5.32/unit is to be
recovered through FPPPA, over and above base FPPPA of Rs. 2.77/unit on quarterly basis. As per
the projected ARR for MYT Control Period, the weighted average power purchase cost is worked
out as shown below:

Table 6-4: FPPPA Computation for FY 2025-26 (Rs. Crore)

S. No. Particulars FY 2024-25 FY 2025-26
1 Fixed Cost (Rs. Crore) 15,078 15,601
2 Variable Cost (Rs. Crore) 44,860 47,671
3 GETCO Cost (Rs. Crore) 5,584 5,774
4 GUVNL Cost (Rs. Crore) 513 539
5 PGCIL Charges (Rs. Crore) 3,276 3,489
6 NLDC/RLDC Charges (Rs. Crore) 9 10
7 SLDC Charges (Rs. Crore) 38 41
8 Total Power Purchase Cost (Rs. Crore) 69,358 73,126
9 Total Energy Requirement (MU) 1,30,264 1,37,473
10 Power Purchase Cost (Rs./kWh) 5.32 5.32
11 Increase in Power Purchase Cost (Rs./kWh) -0.01
Additional FPPPA Charges (Grossed up
12 0.12 -0.01
by Distribution Loss) (Rs./kWh)
13 Existing FPPPA Charges (Rs./kWh) 2.64 2.76

Gujarat Electricity Regulatory Commission Page 334

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

S. No. Particulars FY 2024-25 FY 2025-26

14 Revised FPPPA Charges (Rs./kWh) 2.76 2.75

Commission’s Analysis

The Commission has approved the base power purchase cost for FY 2025-26 as Rs. 5.27/kWh. Thus,
there is a decrease of Rs. 0.06/kWh in the base power purchase cost of DISCOMs for FY 2025-26
over that of for FY 2024-25. After grossing up with approved overall loss, the decrease comes out to
be Rs 0.07/ kWh. The revised Base FPPAS charge for FY 2025-26 is shown in the table below:

Table 6-5: Approved Base FPPAS for FY 2025-26 (Rs. Crore)

S. No. Particulars FY 2024-25 FY 2025-26
1 Fixed Cost (Rs. Crore) 15,078.00 16,027.97
2 Variable Cost (Rs. Crore) 44,860.00 45,716.03
3 GETCO Cost (Rs. Crore) 5,584.00 5,001.10
4 GUVNL Cost (Rs. Crore) 513.00 527.71
5 PGCIL Charges (Rs. Crore) 3,276.00 3,489.28
6 NLDC/RLDC Charges (Rs. Crore) 9.38 9.85
7 SLDC Charges (Rs. Crore) 38.00 33.58
8 Total Power Purchase Cost (Rs. Crore) 69,358.38 70,805.52
9 Total Energy Requirement (MU) 1,30,264.00 1,34,613.87
10 Power Purchase Cost (Rs./kWh) 5.32 5.26
11 Increase in Power Purchase Cost (Rs./kWh) (0.06)
Additional FPPPA Charges (Grossed up
12
by Distribution Loss) (Rs./kWh)
0.12 (0.07)

13 Existing FPPPA Charges (Rs./kWh) 2.64 2.76

14 Revised FPPAS Charges (Rs./kWh) 2.76 2.69

Accordingly, the base FPPAS for FY 2025-26 works out to be Rs. 2.69/kWh.

Accordingly, the Commission allows Base FPPAS charges and revenue therefrom on the approved
sales of 40,048.65 MUs for FY 2025-26 at Rs. 2.69/kWh as shown in the table below:

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Table 6-6: Approved revenue from FPPAS charges for FY 2025-26

S. No. Particulars FY 2025-26

1 Projected Sales (MUs ) 40,048.65

2 Base FPPAS Rate (Rs./kWh) 2.69
3 Revenue from Base FPPAS (Rs. Crore) 10,773.09

6.3 Other consumer related Income

PGVCL has projected the other consumer related income as Rs. 380.87 Crore for FY 2025-26, as
shown in the table below:

Table 6-7: Other Consumer related income for FY 2025-26 (Rs Crore)
S. No. Particulars FY 2025-26
1 Other Consumer related income 380.87

Petitioner’s submission

PGVCL submitted that the revenue from Other Consumer Related Income comprises of revenue on
account of charges other than the basic charges applicable to the Consumers. These include income
on account of wheeling charges, inspection charges and miscellaneous charges. PGVCL has
projected its Other Consumer related Income for MYT Control period same as actual of FY 2023-
24.

Commission’s Analysis

The Commission observes that PGVCL has projected the other consumer related income for MYT
Control Period at actuals of FY 2023-24 as per audited Annual Accounts. The Commission,
accordingly, approves the other consumer related income at Rs. 380.87 Crore for MYT Control
Period, as shown in the Table below:

Table 6-8: Approved Other Consumer related income for FY 2025-26 (Rs Crore)

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S. No. Particulars FY 2025-26

1 Other Consumer related income 380.87

6.4 Agriculture Subsidy

PGVCL has projected Agriculture Subsidy as Rs. 150.64 Crore for MYT Control Period as shown
in the Table below:

Table 6-9: Agriculture Subsidy for FY 2025-26 (Rs. Crore)

S. No. Particulars FY 2025-26
1 Agriculture Subsidy 450.64

Petitioner’s submission

PGVCL submitted that the Agricultural Subsidy that was received by the erstwhile GEB from the
State Government will continue to be received by the four DISCOMs i.e. Rs. 1100.00 Crores. The
share of agricultural subsidy for MYT Control period is considered on pro-rata basis of agriculture
consumption.

Commission’s Analysis

The Commission has considered the Agriculture Subsidy as projected by the petitioner, and
accordingly, approves Agricultural Subsidy as Rs. 450.64 Crore for MYT Control Period, as shown
in the Table below:

Table 6-10: Agriculture Subsidy for FY 2025-26 (Rs. Crore)

S. No. Particulars FY 2025-26
1 Agriculture Subsidy 450.64

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6.5 Total Expected Revenue for FY 2025-26

PGVCL has projected total revenue of Rs. 26,589.98 Crore for FY 2025-26, as shown in the table
below:

Table 6-11: Total projected revenue for FY 2025-26 (Rs. Crore)

S. No. Particulars FY 2025-26

1 Revenue with Existing Tariff 16,881.15

2 FPPPA Charges @ Rs. 2.75/ unit 11,013.38
3 Other Income (Consumer related) 380.87
4 Agriculture Subsidy 450.64
5 Total Revenue including subsidy (1 to 4) 28,726.04

Petitioner’s submission

PGVCL submitted that based on the projections, the total revenue of the company comprises of
revenue from sale of power at existing tariff, FPPPA charges, other consumer related income and
Agriculture Subsidy.

Commission’s Analysis

The Commission has approved the total revenue for FY 2025-26, as shown in the table below:

Table 6-12: Approved Total Revenue for FY 2025-26 (Rs. Crore)

S. No. Particulars FY 2025-26

1 Revenue with Existing Tariff 16,881.15
2 FPPAS Charges @ Rs. 2.69/ unit 10,773.09
3 Other Income (Consumer related) 380.87
4 Agriculture Subsidy 450.64
5 Total Revenue including subsidy (1 to 4) 28,485.75

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6.6 Revenue (Gap)/Surplus for FY 2025-26

Petitioner’s submission

PGVCL has estimated the cumulative Revenue (Gap)/Surplus for FY 2025-26 as shown in the table
below:

Table 6-13: Estimated Revenue (Gap)/ Surplus for FY 2025-26 (Rs. Crore)
S. No. Particulars FY 2025-26
1 Aggregate Revenue Requirement 27,396.56
Less: Revenue (Gap)/Surplus from True up of FY 493.22
2
2023-24
3 Total Aggregate Revenue Requirement 26,903.34
4 Revenue with Existing Tariff 16,881.15
5 FPPPA Charges @ Rs. 2.75/ unit 11,013.38
6 Other Income (Consumer related) 380.87
7 Agriculture Subsidy 450.64
8 Total Revenue including subsidy (4 to 7) 28,726.04
9 Revenue (Gap)/Surplus (8 - 3) 1,822.70

Commission’s Analysis

The Commission has estimated the total Revenue (Gap)/ Surplus for FY 2025-26 at the existing
Tariff, as shown in the table below:

Table 6-14: Approved Revenue (Gap)/ Surplus for FY 2025-26 (Rs. Crore)
S. No. Particulars FY 2025-26
1 Aggregate Revenue Requirement 25,653.45
2 Less: Revenue (Gap)/Surplus from True up of FY 745.03
2023-24
3 Total Aggregate Revenue Requirement 24,908.42

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S. No. Particulars FY 2025-26

4 Revenue with Existing Tariff 16,881.15
5 Base FPPAS Charges @ Rs. 2.69/ unit 10,773.09
6 Other Income (Consumer related) 380.87
7 Agriculture Subsidy 450.64
8 Total Revenue including subsidy (4 to 7) 28,485.75
9 Revenue (Gap)/Surplus (8 - 3) 3,577.32

6.7 Consolidated Revenue (Gap)/Surplus of the State-Owned DISCOMs

Since, the uniform Tariff for State-owned DISCOMs has been envisaged in this MYT Order, it is
necessary to consider the consolidated (Gap)/Surplus of FY 2025-26 for all the State-owned
DISCOMs, while determining the Tariff for FY 2025-26.

The consolidated Revenue Surplus approved by the Commission for FY 2025-26 as shown in the
Table below, is Rs. 9,982.59 Crore, as compared to Revenue Surplus of Rs. 5,094.88 Crore estimated
by the State-owned DISCOMs. The computations are shown in the Table below:

Table 6-15: Consolidated Surplus computed for FY 2025-26 (Rs. Crore)

Projected by
S. No. Particulars Approved
DISCOMs
1 ARR for FY 2025-26 84,829.65 81,261.57
2 Revenue (Gap)/Surplus for FY 2023-24 2,972.88 4,995.32
3 Net ARR for FY 2025-26 81,856.77 76,266.25
4 Revenue with existing Tariff 51,809.58 51,817.13
5 FPPAS Revenue 32,553.24 31,842.89
6 Other Income (Consumer Related) 1,488.82 1,488.82
7 Agriculture Subsidy 1,100.00 1,100.00
8 Total Revenue 86,951.65 86,248.84

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Projected by
S. No. Particulars Approved
DISCOMs
9 (Gap)/Surplus for FY 2025-26 5,094.88 9,982.59

Accordingly, there is a Cumulative Revenue Surplus of Rs. 9,982.59 Crore (Consolidated for all
DISCOMs) while determining the ARR for FY 2025-26.

As shown in the above table there is a consolidated True up surplus for all the four DISCOMs put
together is Rs. 4,995.32 Crore. The base FPPAS works out to be Rs. 2.69/ kWh. In the normal
circumstances this base FPPAS is required to be billed to the consumer for FY 2025-26. However,
looking to the Trued up Surplus and as proposed by the Petitioner, it is directed to the DISCOMs to
charge Rs. 2.45/kWh as base FPPAS instead of Rs. 2.69/kWh for the energy consumption during
entire FY 2025-26. Thus, base FPPAS for FY 2025-26 for the consumers of all the four State Owned
DISCOMs is frozen at Rs. 2.45/kWh so as to pass on the benefit of Trued up Surplus to the extent of
Rs. 2,841 Crore. The balance Surplus of Rs. 2,154.32 Crore is at present not passed on to the
consumers since this Surplus is majorly on account of consideration of Revenue which is under
litigation at various Forums.

Further, as shown in the above table, there is a projected Surplus of Rs. 4987.27 Crore (Projected
Surplus Rs. 9,982.59 Crore – Trued up Surplus of Rs. 4,995.32 Crore). As deliberated in the Tariff
Philosophy Chapter of this Order, the Commission has made certain changes in the Tariff Schedule
that shall result into the reduction of revenue of the four State Owned DSICOMs. Moreover, the
projected Surplus of Rs. 4,987.27 Crore is on account of projections only and actual expenses as well
as revenue shall vary on account of various factors. In view of this, the Commission does not find it
appropriate to make any further change in the Tariff Schedule at this stage other than the changes
made in the existing Tariff Schedule as narrated in the Tariff Philosophy chapter.

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7. Directives

Compliance to Directives issued by the Commission

The Commission has provided certain directives to PGVCL. PGVCL has submitted report on
compliance of the Directives issued by the Commission. The comments of the Commission on the
submission/ compliance of PGVCL are given below:

Directive 1: Tariff Rationalization

The Commission directed the DISCOM to propose rationalization in the existing tariff structure
based on the study of Tariff slabs of major consumer categories in other leading / neighbouring states.
DISCOM was also directed to explore the possibility of providing separate tariff structure to the
consumer with pre-paid Smart Meter.

Petitioner Submission:

In compliance to above directives, the Petitioner have proposed separate tariff for all category of
consumers under LT supply except Agriculture consumers. Tariff for Smart Meter is only applicable
if positive balance is maintained by the consumer, in event of a negative balance, the post-paid tariff
is applicable to the respective consumer category for the respective billing month.

The Petitioner while filing of Tariff petition for FY 2024-25 have proposed rationalisation of LTMD
Night and NRGP Night tariff category from the existing tariff structure and the Commission has
passed an order according above proposal. Further DISCOM shall propose rationalization of the tariff
in the subsequent years of the control period.

Commission Analysis:

The Commission has noted the submission of PGVCL in this regard. PGVCL is directed to submit
the detailed compliance of above directions in next filing.

Directive 2: Charging Infrastructure for Electric Vehicles

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The DISCOM reported to the Commission that GUVNL has initiated action for inviting EoI from
eligible entities for providing EV Charging facilities across the states. DISCOM is directed to report
the progress made in this regard.

Petitioner Submission:

As regard to directives for charging infrastructure for EV in the tariff order of Discoms dated
01.06.2024, Government of Gujarat has notified Gujarat EV Policy, 2021 and subsequent guideline
were issued by State Government dated 28.09.2022 for inviting applications for availing certified
subsidy by installation of EVCS. The guidelines covered 250 locations covering municipal
corporation, municipalities, highways and tourist location.

As per the terms of the guideline during FY 2023-24, GUVNL has issued EOI dated 16.10.2023 for
inviting applications for installation of EVCS by availing capital subsidy. In this regard, pursuance
to scrutiny of application by committee LoA were issued at 76 locations wide letter dated 24.04.2024.

As per the terms of the guidelines, completion of installation of chargers is to be carried out within
06 months from date of LoA. Further, GUVNL has received request letter for commissioning of
EVCS at 06 locations within the stipulated time period i.e, upto 24.10.2024.

Commission Analysis:

The Commission has noted the submission of PGVCL in this regard.

New Directive issued by the Commission

Directive 1: ESG Disclosure

The Commission directs the Petitioner to get ESG disclosure done within FY 2025-26 and submit
the report.

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8. Fuel and Power Purchase Price Adjustment Surcharge (FPPAS)

Fuel and Power Purchase Adjustment Surcharge (FPPAS)

In connection with the ‘Fuel and Power Purchase Adjustment Surcharge’, the GERC (Multi-
Year Tariff) Regulations, 2024 provides that-

“115.1 Computation of FPPAS:

(a) For these Regulations “Fuel and Power Purchase Adjustment Surcharge” (FPPAS)
means the increase in cost of power, supplied to consumers, due to change in Fuel cost,
power purchase cost and transmission charges with reference to cost of supply approved
by the Commission.

(b) FPPAS shall be calculated and billed to consumers, automatically, without going through
regulatory approval process, on a monthly basis, according to the formula, prescribed by
the Commission in these Regulations, subject to true up, on an annual basis:

Provided that the automatic pass through shall be adjusted for monthly billing in accordance
with these Regulations;

Provided further that the Distribution Licensee shall make quarterly submissions of the
detailed FPPAS computations, duly supported by the documentary evidences, justifying
such computations, along with details its charging and recovery from the consumers.

(c) FPPAS shall be computed and charged by the Distribution Licensee, in (n+2)th month,
on the basis of actual variation, in cost of fuel and power purchase and Interstate
Transmission Charges for the power procured during the nth month. For example, the
FPPAS on account of changes in tariff for power supplied during the month of April of

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any financial year shall be computed and billed in the month of June of the same financial
year:

Provided that in case the Distribution Licensee fails to compute and charge FPPAS within
this time line, except in case of any force majeure condition, its right for recovery of costs
on account of FPPAS shall be forfeited and in such cases, the right to recover the FPPAS
determined during true-up shall also be forfeited.

(d) The Distribution Licensee may decide, FPPAS or a part thereof, to be carried forward to
the subsequent month in order to avoid any tariff shock to consumers, but the carry
forward of FPPAS shall not exceed a maximum duration of two months and such carry
forward shall only be applicable, if the total FPPAS for a Billing Month, including any
carry forward of FPPAS over the previous month exceeds twenty per cent of variable
component of approved tariff.

(e) The carry forward shall be recovered within one year or before the next tariff cycle
whichever is earlier and the money recovered through FPPAS shall first be accounted
towards the oldest carry forward portion of the FPPAS followed by the subsequent
month.

(f) In case of carry forward of FPPAS, the carrying cost calculated on simple interest basis
at the rate of one year SBI MCLR or any replacement thereof by SBI from time to time
being in effect applicable for 1 year period, as applicable prevailing during the relevant
year shall be allowed till the same is recovered through tariff and this carrying cost shall
be trued up in the year under consideration.

(g) Depending upon quantum of FPPAS, the automatic pass through shall be adjusted in such
a manner that,

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i. If FPPAS ≤ 5%, 100% cost recoverable of FPPAS by Distribution Licensee shall

be levied automatically using the formula.

ii. If FPPAS > 5%, 5% FPPAS shall be recoverable automatically as per item (i) of
sub-paragraph (g) above. 90% of the balance FPPAS shall be recoverable
automatically using the formula and the differential claim shall be recoverable
after approval by the Commission during true up.

(h) The revenue recovered on account of pass through FPPAS by the Distribution Licensee,
shall be trued up later for the year under consideration and the true up for any financial
Year shall be completed by 30th June of the next financial year.

(i) In case of excess revenue recovered for the year against the FPPAS, the same shall be
recovered from the Distribution Licensee at the time of true up along with its carrying
cost to be charged at 1.20 times of the carrying cost rate approved by the Commission
and the under recovery of FPPAS shall be allowed during true up, to be billed along with
the automatic FPPAS amount.

Explanation:- For example in the month of July, the automatic pass through component for
the power supplied in May and FPPAS, if any, recoverable after true up for the month of
April in the previous financial year, shall be billed.

(j) The Distribution Licensee shall submit such details, in the stipulated formats, of the
variation between expenses incurred and FPPAS recovered, and the detailed
computations and supporting documents, as required by the Commission, during true up
of the normal tariff.

(k) To ensure smooth implementation of the FPPAS mechanism and its recovery, the
Distribution Licensee shall ensure that its billing system is updated to take this into

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account and a unified billing system shall be implemented to ensure that there is a
uniform billing system irrespective of the billing and metering vendor through
interoperability or use of open source software as available.

(l) The Distribution Licensee shall publish all details including the FPPAS formula,
calculation of monthly FPPAS and recovery of FPPAS (separately for automatic and
approved portions) on its website and archive the same through a dedicated web address.

(m) Formula for Computation of FPPAS:

Monthly FPPAS for Nth Month (%)

( A − B) ∗ C + (D − E)
=
{Z ∗ (1 − Distribution losses in%/100)} ∗ ABR

Where,

Nth month means the month in which billing of FPPAS component is done. This FPPAS is
due to changes in tariff for the power supplied in (n-2)th month

A is Total units procured in (n-2)th Month (in kWh) from all Sources including Long-term,
Medium-term and Short-term Power purchases (To be taken from the bills issued to
Distribution Licensees)

B is bulk sale of power from all Sources in (n-2)th Month. (in kWh) = (to be taken from
provisional accounts to be issued by State Load Dispatch Centre by the 10th day of each
month).

C is incremental Average Power Purchase Cost (including the change of fuel cost) = Actual
average Power Purchase Cost (PPC) from all Sources in (n-2) month (Rs./ kWh) ( computed)
- Projected average Power Purchase Cost (PPC) from all Sources (Rs./ kWh)- (from tariff
order)

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D = Actual inter-state and Intra-State Transmission Charges in the (n-2)th Month, (From the
bills by Transcos to Discom) (in Rs)

E = Base Cost of Transmission Charges for (n-2)th Month. = (Approved Transmission

Charges/12) (in Rs)

Z = [{Actual Power purchased from all the sources outside the State in (n-2) th Month. (in
kWh)* (1 – Interstate transmission losses in % /100 ) + Power purchased from all the sources
within the State(in kWh)}*(1 – Intra-State losses in %) – B]/100 in kWh

ABR = Average Billing Rate for the year as approved by the Commission (in Rs/kWh)

Distribution Losses (in %) = Target Distribution Losses as approved by the Commission

Inter-state transmission Losses (in %) as approved by the Commission

Note:

The Power Purchase Cost shall exclude any charges on account of Deviation Settlement
Mechanism.

Other charges which include Ancillary Services and Security Constrained Economic
Despatch shall not be included in Fuel and Power Purchase Adjustment Surcharge and
adjusted though the true-up approved by the Commission.”

Computation of FPPAS for the FY 2025-26:

It is required to compute and bill monthly FPPAS in accordance with the above formula.
Further for the computation of monthly FPPAS during FY 2025-26, it is required to consider-

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Projected Energy Requirement 134614 MU

Approved Power Purchase Cost

Rs. 61168.88 Crore
(Excluding Transmission Charges)
Projected average Power Purchase Cost
Rs. 4.54 per kWh
(PPC)
Base Cost of Transmission Charges
Rs. 711.15 Crore
(Monthly)
Distribution Losses 7.49%
Average Billing Rate for the Year Rs. 6.72 per kWh
Inter-State and Intra-State Transmission
As actual
Losses

Monthly FPPAS computed in %, in accordance with the MYT Regulations shall be applicable
to Energy Charge + Base FPPAS and Fixed/ Demand Charge (Not on Excess Demand
Charges, ToU Charges or other rebate/penalties)

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9. Wheeling Charges and Cross-Subsidy Surcharge

9.1 Allocation Matrix

Regulations 98 and 99 of the GERC (MYT) Regulations, 2024 specify that the Commission shall
determine the Wheeling Charges and Wheeling Losses respectively of Distribution Wires Business of
the Distribution Licensees in the ARR and Tariff Order.

The Commission, in order to compute the Wheeling Charges and Cross-Subsidy Surcharge, has
considered the allocation matrix between the Wheeling and Retail Supply Business as specified in
Regulations 94.1 of the GERC (MYT) Regulations, 2024.

However, the Commission would like to state that as per Regulations 94.1 of the GERC (MYT)
Regulations, 2024, the wheeling charges is required to be segregated on the basis of segregated
accounts of Distribution Wires Business and Retail Supply Business. Accordingly, the Petitioner is
directed to maintain separate books of accounts for the Distribution Wire Business and Retail Supply
Business from the second year of Control Period and the failure to which will result in penalty as per
Regulation 35.13 of GERC (MYT) Regulations, 2024. Further, the Guidelines as specified in
Annexure V of GERC (MYT) Regulations, 2024 needs to be followed for the segregation of Wire and
Supply business.

However, FY 2025-26 being the first year of the MYT Control Period and the direction to maintain
separate account is applicable from second year of the Control Period, the Commission has considered
the allocation matrix for the purpose of segregation of wire and supply ARR as provided in the GERC
(MYT) Regulation, 2024 and has approved the ARR for Wires and Retail Supply Business for FY
2025-26 is shown in the Table below:

Table 9-1: Allocation matrix and segregation of wheeling and retail supply business of Distribution
Licensees

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Total ARR Segregated ARR in

Allocation in %
of Rs. Crore
Sl.
Particulars Distribution
No. Wires Retail Wires Retail
in Rs.
Business Business Business Business
Crore
1 Power Purchase Expenses

2 Intra-State Transmission Charges 70,805.52 0% 100% - 70,805.52

3 SLDC Fees and Charges

4 Employee Expenses 3,705.43 60% 40% 2,223.26 1,482.17

5 Administration & General Expenses 627.25 50% 50% 313.63 313.63

6 Repair & Maintenance Expenses 693.05 90% 10% 623.74 69.30

7 RDSS Metering Opex 1,091.33 100% 0% 1,091.33 -

8 Other Expenses Capitalised (736.93) 55% 45% (405.31) (331.62)

9 Depreciation 2,846.01 90% 10% 2,561.41 284.60

10 Interest on Long-term Loan Capital 61.58 90% 10% 55.42 6.16

Interest on Working Capital and on consumer
11 721.99 10% 90% 72.20 649.79
security deposits
12 Bad Debts Written off 1.16 0% 100% - 1.16

13 Contribution to contingency reserves, if any 292.05 100% 0% 292.05 -

14 Return on Equity 1,771.94 90% 10% 1,594.75 177.19

15 Return on Capital Employed 495.9 90% 10% 446.31 49.59

16 Less: Non-Tariff Income 1,114.71 10% 90% 111.47 1,003.24

17 Aggregate Revenue Requirement 81,261.57 8,757.31 72,504.26

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9.2 Wheeling charges

The Wheeling Charges for the four Distribution Companies, viz., DGVCL, MGVCL, PGVCL and
UGVCL for FY 2025-26, as given below are applicable for use of the distribution system of a
Distribution Licensee by other Licenses or Generating Companies or captive power plants or
consumers/users who are permitted Open Access under Section 42 (2) of the Electricity Act, 2003.

Table 9-3: Wheeling charges for FY 2025-26

S.
Particulars Units Amount
No.
1 Distribution costs of the four DISCOMs Rs. Crore 8,757.31
Distribution cost of the four DISCOMs at 11 kV, 22 kV
2 Rs. Crore 2,627.19
& 33 kV level (30% of total distribution cost)

Distribution cost of the four DISCOMs at LT level (70%

3 Rs. Crore 6,130.11
of total distribution cost)

4 Energy input at 11 kV, 22 kV & 33 kV MUs 1,27,960.08

5 Wheeling charges at 11 kV, 22 kV & 33 kV Ps./kWh 20.53

6 Energy Input at 400 V (LT) MUs 62,953.46

7 Wheeling charges at 400 V (LT) Ps./kWh 97.38

Accordingly, the Commission approves Wheeling Charges for HT network (11 kV system) at 20.53
Paise per kWh and Wheeling Charges for LT network (400 V system) at 97.38 Paise per kWh.

9.3 Distribution losses:

The distribution losses applicable for Open Access during FY 2024-25 are as given below:

The losses in HT and LT network are 7.49% and 0.49% respectively, with respect to energy input to
the segment of the system. In case injection at 11 kV levels and drawl at LT level envisages use of

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both the networks, i.e., 11 kV and LT, in that case, the combined loss works out to 7.49% of the energy
injection at 11 kV network.

Point of Energy
S. No. Particulars 11 kV, 22 kV & 400 Volts
33 kV Delivered
1 11 kV, 22 kV and 33 kV 7.25% 7.49%
2 400 Volts 0.49%

The above Wheeling Charges payable shall be uniform in all the four Distribution Licensees, viz., DGVCL,
MGVCL, PGVCL and UGVCL.

Cross-Subsidy Surcharge

The Cross-Subsidy Surcharge (CSS) is based on the formula given in the Tariff Policy as below:

S = T - [C/(1-L/100) +D +R]

Where,

• T is the Tariff payable by the relevant category of consumers, including reflecting the
Renewable Purchase Obligation

• C is the per unit weighted average cost of power purchase by the Licensee, including meeting
the Renewable Purchase Obligation

• D is the aggregate of transmission, distribution and wheeling charge applicable to the

relevant voltage level

• L is the aggregate of transmission, distribution and commercial losses, expressed as a

percentage applicable to the relevant voltage level

• R is the per unit cost of carrying regulatory assets

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The CSS based on the above formula is worked out as shown in the Table below:

Table 9-4: Cross Subsidy Surcharge for FY 2025-26

Sr.
Particulars Units HT Industry
No.
1 T Rs./ kWh 7.84
2 C Rs./ kWh 5.26
3 D Paise/ kWh 20.53
4 L % 7.25%
5 S (Cross Subsidy Surcharge) Rs./kWh 2.37

S= 7.84- [5.26/(1-7.25%/100)+20.53/100+0]= Rs. 2.37/kWh

Thus, CSS as per Tariff Policy, 2016 works out to Rs. 2.37/kWh for the four State owned Distribution
companies viz. DGVCL, PGVCL, UGVCL and UGVCL.

However, the Tariff Policy, 2016 provides that the CSS shall not exceed 20% of the Tariff applicable
to the category of the consumers seeking Open Access. Accordingly, the leviable CSS from the
consumers of the four State Owned Distribution Companies seeking Open Access, for FY 2025-26
works out to Rs. 1.29/kWh.

Accordingly, CSS for HT Category = Rs. 1.29/kWh for FY 2025-26.

Further, vide Order dated 30.08.2022 on Petition No. 1747 of 2018 and 1771 of 2018 about deciding
the methodology for working of Additional Surcharge applicable to Open Access consumers, it is
decided by the Commission that for every year the percentage of network cost built into the demand
charge for the consumers of contract demand in excess of 1000 kVA in each Tariff order will be
specified by the Commission in the Tariff Order of respective financial year. Accordingly, for FY
2025-26, 8.77% portion of demand charge proposed to be recovered from the consumers of contracted
demand in excess of 1000 kVA (i.e. from the consumers eligible for open access) attributes to network
related fixed cost of the distribution licensees.

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10. Tariff Philosophy and Tariff Proposals

10.1 Introduction
The Commission is guided by the provisions of the Electricity Act, 2003, the National Electricity
Policy (NEP), the Tariff Policy, the Regulations on Terms and Conditions of Tariff issued by the
Central Electricity Regulatory Commission (CERC) and GERC (MYT) Regulations, 2016 notified
by the Commission.

Section 61 of the Act lays down the broad principles, and guidelines for determination of retail supply
Tariff. The basic principle is to ensure that the Tariff should progressively reflect the cost of supply
of electricity and reduce the cross subsidies amongst categories within a period to be specified by the
Commission.

10.2 Green Tariff

Commission’s view

The Commission observed that DISCOMs have not proposed any tariff for Green Energy in their
petitions. However, as mandated under the Electricity (Promoting Renewable Energy Through Green
Energy Open Access) Rules, 2022 notified by the Ministry of Power, Government of India, the
Commission is required to determine Green Energy Tarif comprising of the average pooled power
purchase cost of the renewable energy, cross-subsidy charges if any, and service charges covering
the prudent cost of the distribution licensee for providing the green energy. In view of this, it is noted
by the Commission that difference between; (i) Green Tariff worked out considering various cost
elements as per ARR of the four DISCOMs and (ii) the average realisation envisaged for FY 2025-
26 for HT and LT (NRGP and LTMD) categories, works out around Rs. 0.90/kWh. Accordingly, in
order to comply the MoP Rules, the Commission has decided to set the rate of Green Tariff as Rs.
0.90 /kWh which will be over and above the normal tariff applicable to the respective category as
per Tariff Order. Green Tariff is optional and available for consumers who want to avail green power
for meeting their requirement by payment of Green Power Tariff over and above the normal tariff
applicable to the respective category as per Tariff Order.

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• Green Power Tariff of Rs 0.90 / kWh, which is over and above the normal Tariff of the respective
category as per Tariff Order, be levied to the consumers opting for meeting their demand of green
energy.

• All consumers (Extra High Voltage, High Voltage and Low Voltage) shall be eligible for opting
RE power on payment of Green Power Tariff.

• This option can be exercised by consumer giving one month notice to the Distribution Licensee in
writing before commencement of billing period.

10.3 Tariff Proposals

Petitioner Submission

A. Introduction of TOU Discounts for use of electricity from 11:00 Hrs to 15:00 Hrs.

Electricity (Rights of Consumers) Amendment Rules, 2023, stipulates the following stipulates the
following under Rule 8(A):

“Time of Day Tariff. -The Time-of-Day tariff for Commercial and Industrial consumers having
maximum demand more than ten Kilowatt shall be made effective from a date not later than 1st April,
2024 and for other consumers except agricultural consumers, the Time of Day tariff shall be made
effective not later than 1st April, 2025 and a Time of Day tariff shall be made effective immediately
after installation of smart meters, for the consumers with smart meters: ….

Provided further that, tariff for solar hours of the day, specified by the State Commission shall be at
least twenty percent less than the normal tariff for that category of consumers:

Provided also that the Time of Day Tariff shall be applicable on energy charge component of the
normal tariff: Provided also that the duration of peak hours shall not be more than solar hours as
notified by the State Commission or State Load Despatch Centre”

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Envisaging RE power tie-up and promote utilization of RE power it is proposed to offer concession
in energy charge for consumption during 11:00 Hrs to 15:00 Hrs (i.e. 4 hours per day) to HTP-I &
II, HT- EVCS, LTMD, NRGP, LT-EVCS and other LT consumer category installing smart prepaid
meters.

Accordingly, concession of Rs 0.45/unit for consumption of energy during 11:00 Hrs to 15:00 Hrs is
proposed for consumer category of HTP-I & II, HT-EVCS, LTMD, NRGP, and LT-EVCS effective
from 1st April 2025 (and for all LT consumers except AG installing Smart pre-paid meters).

Commission’s view

The Commission noted the submission of the Petitioner. In order to incentivise the Renewable
Energy development and utilisation of Renewable Energy during the hours of its generation (mainly
solar) so as to help the licensee in real time grid management , the Commission decides to provide
60 Paise/kWh concession in place of proposal of the Petitioner to offer 45 Paise/kWh concession for
electricity consumption during 11:00 Hrs to 15:00 Hrs. to consumers categories as proposed by the
Petitioner. Necessary modification is carried out in the approved Tariff Schedule attached with this
Order.

B. Implementation of Time of Day (ToD) Charges for NRGP, LT Electric Vehicle and HT
Electric Vehicle tariff category in line with existing HTP-I, HTP-II, HTP-III and LTMD
Tariff category

Ministry of Power, GoI in Electricity (Rights of Consumer) Amendment Rules, 2023 vide
notification dated 14.06.2023, under Rule 8 (A) mandated the following:

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The Rules inter-alia provides for introduction of Time-of-Day Tariff for Commercial and Industrial
consumers having contract demand above 10 KW from 01.04.2024. As per present tariff schedule,
ToD charges are in place for HT category (except agriculture consumer category). Accordingly, it is
proposed to levy charges for NRGP, LT EV and HT EV category (above 10 kW) in line with HTP-
I, HTP-II, HTP-III and LTMD category from 1st April 2025 as under:

Table 10-1: Proposed ToU charges for FY 2025-26

Applicable Category Proposed

NRGP TOU Charge – 45 paisa /

kWh

LT Electric Vehicle TOU Charge – 45 paisa /

kWh

HT Electric Vehicle TOU Charge – 45 paisa /

kWh

Commission’s view

The Commission noted the submission of the Petitioner. To comply with the GoI, Electricity (Right
of Consumer) Amendment Rules, 2023 the Commission decides to introduce ToU Charges for
NRGP and LT EV category of consumers having contract demand above 10 kW and HT EV category
of consumers. This will enable the licensee to manage grid more efficiently.

C. Introduction of Separate Tariff for Smart Pre-Paid Meter Consumers (RDSS scheme)

The Government of India has approved Reformed based and Result Linked, Revamped Distribution
Sector Scheme. The key objective of the scheme involves installation of prepaid smart metering for
consumers along with the associated Advanced Metering Infrastructure.

The DISCOMs are in the process of implementation of the RDSS scheme in the State and the
replacement of all the existing consumer meters with smart prepaid meters will be executed by the
DISCOMs in a phased wise manner.

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Further, the Commission vide letter dated 06.11.2023 have directed DISCOM’s to explore the
possibility of providing separate tariff structure to the consumer with pre-paid Smart Meter in Tariff
Order Dated 01st June 2024.

Accordingly, the comparison of rebate being offered by major states was carried out. Summary of
discount / rebate offered for prepaid smart meter consumer in various States is reproduced in the
below table:

Table 10-2: Discount / rebate offered to Smart Prepayment Consumers in other States
Rebate / Discount offered on Prepaid
Sr. No State
Smart Meter
25 Paise per unit on basic energy charge of
1 Madhya Pradesh
LV-1 (Domestic) & LV-2
2 Himachal Pradesh 3% rebate on Energy Charges
3 Punjab 1% rebate on Energy Charges
2% on recharge amount + 1% online
4 Bihar
payment discount
5 Uttar Pradesh 2% rebate on Energy charges
6 Odisha 2% rebate on prepaid amount

It is understood from above that major States are offering rebates / discount on energy charges.
Therefore, aligned to the practices adopted by other States, it is proposed to initially offer a separate
tariff of 2% reduction in energy charges to LT category (except AG consumer) covered under RDSS
scheme maintaining positive balance, failing which leads the consumer to follow post-paid tariff for
the respective billing month.

Moreover, as provided in the Electricity Act, 2003 at Section 47(5), DISCOMs cannot recover
Security Deposit from the consumer being supplied through pre-payment meter. Therefore, the
existing Security deposit amount of the consumer shall be set-off against equivalent amount of pre-
payment, after net-off arrears if any, on installation of prepayment meter.

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Commission’s view

The Commission noted the submission of the Petitioner and accepts the proposal of the Petitioner to
offer 2% rebate on the Energy Charges to the consumers of LT categories (except AG consumers)
covered under RDSS Scheme maintaining positive balance. Necessary modification is carried out in
the approved Tariff Schedule attached with this Order.

D. Concession to the consumers supply at 11 KV and increase in Rebate for supply at 33KV and
above consumers.

As per Current Tariff Schedule approved by Commission for FY 2024-25 offers concession for High
Tension Consumers availing supply at EHV Level (33 KV and above). The consumers at supply
level 33/66 KV are getting rebate of 0.75% on Energy Charge and consumers at supply level 132
KV & above are availing rebate at 1.25% on Energy Charge.

Consumers availing power supply at higher voltage levels inherently experience lower transmission
and distribution losses, as electricity conveyance at higher voltages reduces technical losses. This
contributes to optimizing grid efficiency and lowering the overall energy requirements for
DISCOMs. By encouraging consumers to draw power at higher voltage levels, DISCOMs can
achieve better management of electricity distribution and maintain optimal loss levels.

A comparison with other states such as Uttar Pradesh, Telangana, Rajasthan, and Punjab shows
various rebates offered to encourage higher voltage connections:

Table 10-3: Comparison of rebate provided by other states

Rebate for 33KV &
State Rebate for 11 KV
above
Uttar Pradesh 3% 7-13%
Rajasthan 1% 4-14%
Telangana 10% 3-5%
5–15 paise/kVAh higher
Punjab 20 paise/KVAh
than 11 kV

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Accordingly, it is proposed to introduce a 1% rebate on energy charges for consumers availing supply
at 11 kV voltage levels. Additionally, the existing rebate for consumers connected at 33 kV and
above (EHV) is proposed to be increased to 2%. This adjustment is aimed at encouraging consumers
to shift to higher voltage systems.

On Energy charges: Existing Rebate Proposed Rebate

If supply is availed at
- 1%
11 kV
If supply is availed at
0.75% 2%
33/66 kV
If supply is availed at
1.25% 2%
132 kV and above

Commission’s view

The Commission noted the submission of the Petitioner. Rebate proposed by the Petitioner in the
Energy Charge for the consumers availing supply at 11 kV and above voltage level is for the purpose
to incentivise the consumers to utilise electricity at higher voltage resulting into lower losses and
enabling environment for better grid management. The Commission is of the opinion that percentage
rebate should be higher for higher voltage level so as to achieve the basic purpose of providing rebate
to the HT category consumers in a scientific manner. Accordingly, the Commission decides to offer
HV and EHV rebate as mentioned in the table below;

On Energy charges: Rebate @ %

If supply is availed at 11
1%
kV/ 22 kV
If supply is availed at 33
1.50%
kV/ 66 kV
If supply is availed at 132
2%
kV and above
Further, to impart better understanding and avoid any confusion regarding applicability of this rebate
for 11 kV and above voltage level consumers, it is clarified that the rebate at the rate (%) mentioned

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in the attached Tariff Schedule for the consumers of respective voltage class shall be only on the
“Energy Charges” head stipulated in the respective tariff category.

E. Mismatch between Fixed Cost liability and their recovery

It is respectfully submitted that DISCOMs' fixed costs, comprising expenses for power purchase,
transmission, and internal operations, constitute approximately 40%-45% of the total cost, while
variable costs account for the remaining 55%-60%. However, the recovery from consumers is
significantly skewed, with only around 10% of revenues generated through fixed/demand charges,
and the majority, approximately 90%, being recovered through energy/variable charges.

The prevailing tariff structure allows recovery of DISCOMs' fixed cost obligations through energy
charges levied on a per-unit basis with demand charges contributing marginally to the fixed cost
recovery. This mismatch between fixed cost liabilities and their recovery might create financial stress
for DISCOMs and limits their ability to sustainably meet their obligations in the long run.

In light of above it is humbly submitted that a gradual transition to a cost-reflective tariff structure is
essential wherein fixed costs are recovered majorly through fixed/demand charges. To maintain
revenue neutrality for both consumer and DISCOMs, proportionate reduction in energy charges is
requested to be considered. This will ensure fair and equitable cost –recovery tariff structure and
reduce DISCOMs dependence on varying energy sales and provide a predictable revenue stream for
meeting fixed liabilities.

Commission’s view

The Commission noted the submission of the Petitioner. The Petitioner did not come up with any
amendment in the Tariff Petition in this regard.

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Commission’s Order
The Commission approves the Aggregate Revenue Requirement (ARR) for PGVCL for FY 2025-26
to FY 2029-30, as shown in the Table below:

ARR approved for FY 2025-26 to FY 2029-30 (Rs. Crore)

S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
1 Cost of Power Purchase 21,684.44 22,915.32 23,199.54 24,040.77 25,079.89
Operation & Maintenance
2 1,733.74 1,915.54 2,311.90 2,412.96 2,517.37
Expenses
2a Employee Cost 1,396.34 1,462.80 1,532.44 1,605.38 1,681.80
Administration & General
2b 237.84 249.16 261.02 273.44 286.46
Charges
2c Repair & Maintenance 292.02 328.38 362.86 396.18 429.65
2d RDSS Metering Opex 145.29 229.02 526.26 526.26 526.26
Other Expenses
2e (337.75) (353.82) (370.67) (388.31) (406.79)
Capitalised
Depreciation (On assets
3a capitalised prior to 1,145.45 1,145.45 1,145.45 1,145.45 1,145.45
01.04.2025)
Depreciation (On assets
3b 84.36 248.69 405.98 560.92 716.68
capitalised w.e.f 01.04.2025)
3 Total Depreciation 1,229.81 1,394.14 1,551.42 1,706.37 1,862.13
Interest on Loans (On assets
4a capitalised prior to 44.31 - - - -
01.04.2025)
4b Interest on Security Deposit 222.33 226.64 228.88 239.58 266.96
4c Other Finance Charges 0.14 0.14 0.14 0.14 0.14
4 Interest & Finance Charges 266.77 226.78 229.01 239.71 267.09
5 Interest on Working Capital - - - - -
6 Provision for Bad Debts 1.16 1.16 1.16 1.16 1.16

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S. FY FY FY FY FY
Particulars
No. 2025-26 2026-27 2027-28 2028-29 2029-30
Contribution to Contingency
7 128.44 144.43 159.59 174.25 188.97
Reserve
Total Revenue Expenditure
8 25,044.35 26,597.36 27,452.63 28,575.22 29,916.62
[1 to 7]
Return on Equity (On assets
9 capitalised prior to 862.68 862.68 862.68 862.68 862.68
01.04.2025)
Return on Capital Employed
10 (On assets capitalised w.e.f 131.39 435.03 758.12 1,049.82 1,321.94
01.04.2025)
11 Total Expenditure (8 to 10) 26,038.42 27,895.08 29,073.43 30,487.73 32,101.24
12 Less: Non-Tariff Income 384.97 384.97 384.97 384.97 384.97
Aggregate Revenue
13 25,653.45 27,510.11 28,688.46 30,102.76 31,716.27
Requirement (11 - 12)

The retail supply Tariffs for PGVCL distribution area determined by the Commission are annexed to
this Order and shall come into force with effect from 1st April 2025. The revised rate shall be applicable
for the electricity consumption from 1st April 2025 onwards.

Sd/- Sd/- Sd/-

S. R. PANDEY MEHUL M. GANDHI ANIL MUKIM
Member Member Chairman

Place: Gandhinagar

Date: 31/03/2025

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TARIFF SCHEDULE

TARIFF FOR SUPPLY OF ELECTRICITY AT LOW TENSION, HIGH TENSION, AND

EXTRA HIGH TENSION

Effective from 1st April, 2025

GENERAL

1. The tariff figures indicated in this tariff schedule are the tariff rates payable by the consumers of
Distribution Licensees viz. DGVCL, MGVCL, PGVCL and UGVCL.
2. These tariffs are exclusive of Electricity Duty, tax on sale of electricity, taxes and other charges
levied by the Government or other competent authorities from time to time which are payable by
the consumers, in addition to the charges levied as per the tariff.
3. All these tariffs for power supply are applicable to only one point of supply.
4. The charges specified are on monthly basis. Distribution Licensee may decide the period of billing
and adjust the tariff rate accordingly.
5. Except in cases where the supply is used for purposes for which a lower tariff is provided in the
tariff schedule, the power supplied to any consumer shall be utilized only for the purpose for which
supply is taken and as provided for in the tariff.
6. The various provisions of the GERC (licensee’s power to recover expenditure incurred in
providing supply and other miscellaneous charges) Regulations, except Meter Charges, will
continue to apply.
7. Conversion of Ratings of electrical appliances and equipment from kilowatt to B.H.P. or vice versa
will be done, when necessary, at the rate of 0.746 kilowatt equal to 1 B.H.P.
8. The billing of fixed charges based on contracted load or maximum demand shall be done in
multiples of 0.5 (one half) Horse Power, kilo watt or kilo volt ampere (HP, kW, kVA) as the case

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may be. The fraction of less than 0.5 shall be rounded off to next 0.5. The billing of energy charges
will be done on complete one kilo-watt-hour (kWh).
9. The Connected Load for the purpose of billing will be taken as the maximum load during the
billing period.
10. The Fixed charges, minimum charges, demand charges, and the slabs of consumption of energy
for energy charges mentioned shall not be subject to any adjustment on account of existence of
any broken period within billing period arising from consumer supply being connected or
disconnected any time within the duration of billing period for any reason.
11. Contract Demand shall mean the maximum kW / kVA for the supply of which licensee undertakes
to provide facilities to the consumer from time to time.
12. Fuel and Power Purchase Adjustment Surcharge (FPPAS) shall be applicable in accordance with
the Formula approved by the Gujarat Electricity Regulatory Commission from time to time.
13. Payment of penal charges for usage in excess of contract demand / load for any billing period does
not entitle the consumer to draw in excess of contract demand / load as a matter of right.
14. The payment of power factor penalty does not exempt the consumer from taking steps to improve
the power factor to the levels specified in the Regulations notified under the Electricity Act, 2003
and licensee shall be entitled to take any other action deemed necessary and authorized under the
Act.
15. Delayed payment charges for all consumers:
• No delayed payment charges shall be levied if the bill is paid within ten days from the
date of billing (excluding date of billing).
• Delayed payment charges will be levied at the rate of 15% per annum in case of all
consumers except Agricultural category for the period from the due date till the date of
payment if the bill is paid after due date. Delayed payment charges will be levied at the
rate of 12% per annum for the consumer governed under Rate AG from the due date till
the date of payment if the bill is paid after due date.
• For Government dues, the delayed payment charges will be levied at the rate provided
under the relevant Electricity Duty Act.

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16. Energy charges for smart pre-paid meter consumers are applicable only when a positive balance
is maintained. Any deviation from this leads the consumer to follow the post-paid meter tariff for
the respective billing month.
17. Green Power Tariff
• Green Power Tariff of Rs 0.90/ kWh, which is over and above the normal tariff of the
respective category as per Tariff Order, be levied to the consumers opting for meeting
their demand of green energy.
• All consumers (Extra High Voltage, High Voltage and Low Voltage) shall be eligible for
opting RE power on payment of Green Power Tariff.
• This option can be exercised by consumer giving one month notice to the Distribution
Licensee in writing before commencement of billing period.

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PART - I

SCHEDULE OF TARIFF FOR SUPPLY OF ELECTRICITY

AT LOW AND MEDIUM VOLTAGE

1. RATE: RGP
This tariff is applicable to all services in the residential premises which are not covered under ‘Rate:
RGP (Rural)’ Category.
• Single Phase Supply – Aggregate load up to 6 kW
• Three Phase Supply – Aggregate load above 6 kW
Provided that the small-scale animal husbandry activities having electricity connection with contract
demand up to 10 kW and involving not more than 30 milking animals shall be covered under this Tariff
Category.

1.1. FIXED CHARGES / MONTH:

Range of Connected Load: (Other than BPL Consumers)
(a) Up to and including 2 kW Rs. 15/- per month

(b) Above 2 to 4 kW Rs. 25/- per month

For BPL Household Consumers

(a) Fixed Charges Rs. 5/- per Month

PLUS

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1.2. ENERGY CHARGES: FOR THE TOTAL MONTHLY CONSUMPTION: (OTHER THAN
BPL CONSUMERS)

Post-Paid Energy Charge Pre-paid Energy Charge

(a) First 50 units 305 Paise per Unit 299 Paise per Unit

(b) Next 50 Units 350 Paise per Unit 343 Paise per Unit
(c) Next 150 Units 415 Paise per Unit 407 Paise per Unit

(d) Above 250 Units 520 Paise per Unit 510 Paise per Unit

1.3. ENERGY CHARGES: FOR THE TOTAL MONTHLY CONSUMPTION: FOR THE
CONSUMERS BELOW POVERTY LINE (BPL) **
Post-Paid Energy Charge Pre-paid Energy Charge

(a) First 50 units 150 Paise per Unit 147 Paise per Unit

For the remaining Rate as per RGP for Smart Pre-

(b) Rate as per RGP
units paid Meter

**The consumer who wants to avail the benefit of the above tariff has to produce a copy of the Card
issued by the authority concerned at the sub-division office of the Distribution Licensee. The
concessional tariff is only for 50 units per month.

1.4. TIME OF USE DISCOUNT

Concession of 60 Paise per Unit shall be applicable for the consumption of energy during 11:00 Hrs to
15:00 Hrs for the Consumers with Smart Pre-paid Meter.

1.5. MINIMUM BILL

Payment of fixed charges as specified in 1.1 above

2. RATE: RGP (RURAL)

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This tariff will be applicable to all services for residential premises located in areas within Gram
Panchayat as defined in the Gujarat Panchayats Act.
• Single Phase Supply – Aggregate load up to 6 kW
• Three Phase Supply – Aggregate load above 6 kW
Provided that the small-scale animal husbandry activities having electricity connection with
contract demand up to 10 kW and involving not more than 30 milking animals shall be covered
under this Tariff category.
2.1. FIXED CHARGES
Range of Connected Load: (Other than BPL Consumers)

(a) Up to and including 2 kW Rs. 15/- per month

(b) Above 2 to 4 kW Rs. 25/- per month

(c) Above 4 to 6 kW Rs. 45/- per month

(d) Above 6 kW Rs. 70/- per month

For BPL Household Consumers

Fixed Charges Rs. 5/- per month

PLUS
2.2. ENERGY CHARGES: FOR THE TOTAL MONTHLY CONSUMPTION: (OTHER THAN
BPL CONSUMERS)
Post-Paid Energy Charge Pre-paid Energy Charge

(a) First 50 units 265 Paise per Unit 260 Paise per Unit

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(b) Next 50 Units 310 Paise per Unit 304 Paise per Unit

2.3. ENERGY CHARGES: FOR THE TOTAL MONTHLY CONSUMPTION: FOR THE
CONSUMER BELOW POVERTY LINE (BPL) **
Post-Paid Energy Charge Pre-paid Energy Charge

(a) First 50 units 150 Paise per Unit 147 Paise per Unit

Rate as per RGP(Rural) for

(b) For remaining units Rate as per RGP (Rural)
Smart Pre-paid Meter

**The consumer who wants to avail the benefit of the above tariff has to produce a copy of the Card issued
by the authority concerned at the sub-division office of the Distribution Licensee. The concessional tariff
is only for 50 units per month.

2.4. TIME OF USE DISCOUNT

Concession of 60 Paise per Unit shall be applicable for the consumption of energy during 11:00 Hrs to
15:00 Hrs for the Consumers with Smart Pre-paid Meter.

2.5. MINIMUM BILL

Payment of fixed charges as specified in 2.1 above.

Note: If the part of the residential premises is used for non-residential (commercial) purposes by the
consumers located within ‘Gram Panchayat’ as defined in Gujarat Panchayat Act, entire consumption will
be charged under this tariff.

3. RATE: GLP
This tariff is applicable to

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(i) the educational institutes and other institutions registered with the Charity Commissioner or
similarly placed authority designated by the Government of India for such intended purpose;
(ii) research and development laboratories;
(iii) Street Light*

Post-Paid Charges Pre-paid Charges

(a) Fixed charges Rs. 70/- per Installation per Month

(b) Energy charges 390 Paise per Unit 382 Paise per Unit

*Maintenance of street lighting conductor provided on the pole to connect the street light is to be carried
out by Distribution Licensee. The consumer utilising electricity for street lighting purpose shall arrange for
renewal, maintenance and replacement of lamp, associated Fixture, connecting wire, disconnecting device,
switch including time switch etc. at his cost by person authorised by him in this behalf under Rule-3 of the
Indian Electricity Rules, 1956/ Rules issued by CEA under the Electricity Act, 2003.

3.1. TIME OF USE DISCOUNT

Concession of 60 Paise per Unit shall be applicable for the consumption of energy during 11:00 Hrs to
15:00 Hrs for the Consumers with Smart Pre-paid Meter.

4. RATE: NON-RGP
This tariff is applicable to the services for the premises those are not covered in any other tariff categories
and having aggregate load up to and including 40 kW.

Consumer under this category may opt to be charged as per category – ‘RATE: LTMD’

4.1. FIXED CHARGES PER MONTH

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(a) First 10 kW of connected load Rs. 50/- per kW

(b) For next 30 kW of connected load Rs. 85/- per kW

PLUS
4.2. ENERGY CHARGES:
Post-Paid Charge Pre-paid Charge
For installation having contracted load
(a) up to and including 10 kW: for entire 435 Paise per Unit 426 Paise per Unit
consumption during the month
For installation having contracted load
(b) exceeding 10 kW: for entire 465 Paise per Unit 456 Paise per Unit
consumption during the month

PLUS
4.3. TIME OF USE CHARGES FOR CONSUMERS HAVING CONTRACT DEMAND ABOVE
10 KW:

Additional Charge for energy consumption during two peak

45 Paise per Unit
periods, viz, 07:00 Hrs to 11:00 Hrs and 18:00 Hrs to 22:00 Hrs

4.4. TIME OF USE DISCOUNT

Concession of 60 Paise per Unit shall be applicable for the consumption of energy during 11:00 Hrs to
15:00 Hrs for the Consumers with Smart Pre-paid Meter.

4.5. MINIMUM BILL PER INSTALLATION FOR SEASONAL CONSUMERS

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4.5.1. “Seasonal Consumers”, shall mean a consumer who takes and uses power supply for ice factory,
ice candy machines, ginning and pressing factory, oil mill, rice mill, huller, salt industry, sugar
factory, khandsari, cold storage plants (including such plants in fisheries industry), tapioca
industries manufacturing starch, vegetable dehydration industries.
4.5.2. Any consumer, who desires to be billed for the minimum charges on annual basis shall intimate to
that effect in writing at least one month before commencement of billing period about the off-
season during which energy consumption, if any, shall be mainly for overhauling of the plant and
machinery. The off-season period at any time shall be a full calendar month/months. The total
period of the off-season so declared and observed shall be not less than three calendar months in a
calendar year.
4.5.3. The total minimum amount under the head “Fixed and Energy Charges” payable by the seasonal
consumer satisfying the eligibility criteria under sub-clause 4.5.1 above and complying with the
provision stipulated under sub-clause 4.5.2 above shall be Rs. 1800 per annum per kW of the
contracted load/ sanctioned load.
4.5.4. The units consumed during the off-season period shall be charged for at a flat rate of 480 Paise per
unit.
4.5.5. The electricity bills related to the off-season period shall not be taken into account towards the
amount payable against the annual minimum bill. The amount paid by the consumer towards the
electricity bills related to the seasonal period only under the heads “Fixed Charges” and “Energy
Charges”, shall be taken into account while determining the amount of short-fall payable towards
the annual minimum bill as specified under sub-clause 4.5.3 above.
4.5.6. Seasonal consumer is required to submit to the Distribution Licensee an irrevocable Bank
Guarantee from a Nationalised or Scheduled Commercial Bank equal to the difference of amount/
Bank Guarantee lying with the Distribution Licensee as Security Deposit and minimum bill
calculated at the rate shown in para 4.5.3 with the Contracted Load/ Sanctioned Load of such
consumer. If the Contracted Load/ Sanctioned Load is revised upward during the calendar year, the
consumer shall submit a revised Bank Guarantee or additional Bank Guarantee as calculated above
to the Licensee. The cost of such Bank Guarantee/s shall be borne by the consumer. It shall be the

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responsibility of the consumer to keep the bank guarantee/s valid at all times and to renew the bank
guarantee/s at least 1 month prior to its expiry.

5. RATE: LTMD
This tariff is applicable to the services for the premises those are not covered in any other tariff categories
and having aggregate load above 40 kW.

This tariff shall also be applicable to consumer covered in category- ‘Rate: Non-RGP’ so opts to be charged
in place of ‘Rate: Non-RGP’ tariff.

5.1. DEMAND CHARGE:

For billing demand up to the Contract demand

(i) For first 40 kW of billing demand Rs. 90/-per kW per month

(a)
(ii) Next 20 kW of billing demand Rs. 130/-per kW per month

(iii) Above 60 kW of billing demand Rs. 195/- per kW per month

(b) For billing demand in excess of the contract demand Rs. 265/- per kW

PLUS

5.2. ENERGY CHARGE:

Post-Paid Energy Pre-paid Energy
Charge Charge
For the entire consumption during the month 460 Paise per Unit 451 Paise per Unit

PLUS
5.3. TIME OF USE CHARGES:

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Additional Charge for energy consumption during two peak

45 Paise per Unit
periods, viz, 07:00 Hrs to 11:00 Hrs and 18:00 Hrs to 22:00 Hrs

PLUS

5.4. REACTIVE ENERGY CHARGES:

For all the reactive units (kVARh) during the month 10 Paise per kVARh

5.5. TIME OF USE DISCOUNT

Concession of 60 Paise per Unit shall be applicable for the consumption of energy during 11:00 Hrs to
15:00 Hrs for the Consumers with Smart Pre-paid Meter.

5.6. BILLING DEMAND

The billing demand shall be highest of the following:

a) Eighty-five percent of the contract demand

b) Actual maximum demand registered during the month
c) 6 kW

5.7. MINIMUM BILL

Payment of demand charges every month based on the billing demand.

5.8. SEASONAL CONSUMERS TAKING LTMD SUPPLY:

5.8.1. The expression, “Seasonal Consumer”, shall mean a consumer who takes and uses power supply
for ice factory, ice-candy machines, ginning and pressing factory, oil mill, rice mill, salt industry,
sugar factory, khandsari, cold storage plants (including such plants in fishery industry), tapioca

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industries manufacturing starch, pumping load or irrigation, white coal manufacturers, vegetable
dehydration industries.
5.8.2. Any consumer, who desires to be billed for the minimum charges on annual basis shall intimate to
that effect in writing at least one month before commencement of billing period about the off-
season during which energy consumption, if any, shall be mainly for overhauling of the plant and
machinery. The off-season period at any time shall be a full calendar month/months. The total
period of the off-season so declared and observed shall be not less than three calendar months in a
calendar year.
5.8.3. The total minimum amount under the head “Demand and Energy Charges” payable by a seasonal
consumer satisfying the eligibility criteria under sub-clause 5.8.1 above and complying with
provisions stipulated under sub-clause 5.8.2 above shall be Rs. 2970 per annum per kW of the
billing demand.
5.8.4. The billing demand shall be the highest of the following:
a) The highest of the actual maximum demand registered during the calendar year.
b) Eighty-five percent of the arithmetic average of contract demand during the year.
c) 6 kW
5.8.5. Units consumed during the off-season period shall be charged for at the flat rate of 470 Paise per
unit.
5.8.6. Seasonal consumer is required to submit to the Distribution Licensee an irrevocable Bank
Guarantee from a Nationalised or Scheduled Commercial Bank equal to the difference of amount/
Bank Guarantee lying with the Licensee as Security Deposit and minimum bill calculated at the
rate shown in para 5.8.3 for the higher of Contract Demand or Billing Demand. If the Contract
Demand is revised upward during the calendar year, the consumer shall submit a revised Bank
Guarantee or additional Bank Guarantee as calculated above to the Licensee. The cost of such Bank
Guarantee/s shall be borne by the consumer. It shall be the responsibility of the consumer to keep
the bank guarantee/s valid at all times and to renew the bank guarantee/s at least 1 month prior to
its expiry.

6. RATE: LTP- LIFT IRRIGATION

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Applicable for supply of electricity to Low Tension Agricultural consumers contracting load up to 125 HP
requiring continuous (twenty-four hours) power supply for lifting water from surface water sources such as
canal, river, & dam and supplying water directly to the fields of farmers for agricultural irrigation only.

(a) Fixed charges per month Rs. 20/- per HP

PLUS
(b) Energy charges per month;
80 Paise per Unit
For entire consumption during the month

7. RATE: WWSP
This tariff shall be applicable to services used for water works and sewerage pumping purposes.

7.1. Type I- Water works and sewerage pumps operated by other than local authority

Post-Paid Energy Pre-paid Energy Charge

Charge
(a) Fixed charges per month Rs. 25/- per HP
(b) Energy charges per month;
For entire consumption during the 430 Paise per Unit 421 Paise per Unit
month

7.2. Type II- Water Works and sewerage pumps operated by local authority such as Municipal
Corporation, Gujarat Water Supply & Sewerage Board located outside Gram Panchayat Area will
also attract this tariff:

Pre-paid Energy
Post-Paid Energy Charge Charge

(a) Fixed charges per month Rs. 20/- per HP

(b) Energy charges per month;

For entire consumption during the month 410 Paise per Unit 402 Paise per Unit

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7.3. Type III- Water Works and sewerage pumps operated by Municipalities/ Nagarpalikas/ and Gram
Panchayats or Gujarat Water Supply & Sewerage Board for its installations located in Gram
Panchayats:

Post-Paid Energy Pre-paid Energy Charge

Charge

Energy charges per month: 314 Paise per Unit

320 Paise per Unit

For entire consumption during the
month

7.4. TIME OF USE DISCOUNT:

Applicable to all the water works consumers having connected load of 50 HP and above for the
energy consumption during the Off-Peak Load Hours of the Day.

For energy consumption during the off-peak period, viz, 1100 Hrs
40 Paise per Unit
to 1800 Hrs

8. RATE: AG
This tariff is applicable to services used for irrigation purposes only excluding installations covered under
LTP- Lift Irrigation category.

8.1.1. The rates for following group are as under:

8.1.2. HP BASED TARIFF
For entire contracted load Rs. 200 per HP per month

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ALTERNATIVELY
8.1.3. METERED TARIFF

Fixed Charges Rs. 20 per HP per month

Energy Charges: For entire consumption during the month 60 Paise per Unit

8.1.4. TATKAL SCHEME

Fixed Charges Rs. 20 per HP per month

Energy Charges: For entire consumption during the

80 Paise per Unit
month

NOTE: The consumers under Tatkal scheme shall be eligible for normal metered tariff as above, on
completion of five years period from the date of commencement of supply.

8.2. No machinery other than pump water for irrigation (and a single bulb or CFL up to 40 watts) will
be permitted under this tariff. Any other machinery connected in the installation governed under
this tariff shall be charged separately at appropriate tariff for which consumers shall have to take
separate connection.
8.3. Agricultural consumers who desire to supply water to brick manufacturing units shall have to pay
Rs. 100/HP per annum subject to minimum of Rs. 2000/- per year for each brick Mfg. Unit to which
water is supplied in addition to existing rate of HP based / metered agricultural tariff.
8.4. Such Agricultural consumers shall have to pay the above charges for a full financial year irrespective
of whether they supply water to the brick manufacturing unit for full or part of the Financial Year.
Agricultural consumers shall have to declare their intention for supply of the water to such brick
manufacturing units in advance and pay charges accordingly before commencement of the financial
year (i.e. in March every year).

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9. RATE- TMP
This tariff is applicable to services of electricity supply for temporary period at the low voltage. A consumer
not taking supply on regular basis under a proper agreement shall be deemed to be taking supply for
temporary period.

1.1. FIXED CHARGE

Fixed Charge per Installation Rs. 15 per kW per Day

1.2. ENERGY CHARGE

A flat rate of 465 Paise per Unit

Note: Payment of bills is to be made within seven days from the date of issue of the bill. Supply would be
disconnected for non-payment of dues on 24 hours’ notice.

10. RATE- LT ELECTRIC VEHICLE (EV) CHARGING STATIONS

This tariff is applicable to consumers who use electricity exclusively for Electric Vehicle Charging
installations.

Other consumers can use their regular electricity supply for charging electric vehicle under same regular
category i.e. RGP, RGP (RURAL), GLP, LTMD, etc. as the case may be.

10.1. FIXED CHARGES

Fixed Charge Rs. 25 per Installation per Month

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PLUS
10.2. ENERGY CHARGES: FOR THE ENTIRE MONTHLY CONSUMPTION

Post-Paid Energy Charge Pre-paid Energy Charge

Energy Charge 410 Paise per Unit 402 Paise per Unit

PLUS

10.3. TIME OF USE CHARGES FOR CONSUMERS HAVING CONTRACT DEMAND ABOVE
10 KW:

Additional Charge for energy consumption during two peak

45 Paise per Unit
periods, viz, 07:00 Hrs to 11:00 Hrs and 18:00 Hrs to 22:00 Hrs

10.4. TIME OF USE DISCOUNT

Concession of 60 Paise per Unit shall be applicable for the consumption of energy during 11:00 Hrs to
15:00 Hrs for the Consumers with Smart Pre-paid Meter.

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PART - II

TARIFFS FOR SUPPLY OF ELECTRICITY AT HIGH TENSION

(3.3 KV AND ABOVE, 3-PHASE 50 HERTZ), AND EXTRA HIGH TENSION

The following tariffs are available for supply at high tension for large power services for contract demand
not less than 100 kVA.

11. RATE- HTP-1

This tariff will be applicable for supply of electricity to HT consumers contracted for 100 kVA and above
for regular power supply and requiring the power supply for the purposes not specified in any other HT
Categories.

11.1. DEMAND CHARGES:

11.1.1. For billing demand up to contract demand

(a) For the first 500 kVA of billing demand Rs. 150/- per kVA per month

(b) For next 500 kVA of billing demand Rs. 260/- per kVA per month

11.1.2. For billing Demand in Excess of Contract Demand

For billing demand in excess over the contract demand Rs. 555 per kVA per month

PLUS

11.2 ENERGY CHARGES

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For entire consumption during the month

(a) Up to 500 kVA of billing demand 400 Paise per unit

(b) For billing demand above 500 kVA and up to 2500 kVA 420 Paise per Unit

PLUS
11.3. TIME OF USE CHARGES
For energy consumption during the two peak periods, viz, 0700 Hrs to 1100 Hrs and 1800 Hrs. to
2200 Hrs.

(a) For Billing Demand up to 500 kVA 45 Paise per unit

(b) For billing demand above 500 kVA 85 Paise per Unit

11.4. BILLING DEMAND

The billing demand shall be the highest of the following:

a) Actual maximum demand established during the month

b) Eighty-five percent of the contract demand
c) One hundred kVA
11.5. MINIMUM BILLS:

Payment of “demand charges” based on kVA of billing demand.

11.6. POWER FACTOR ADJUSTMENT CHARGES:

11.6.1. Penalty for poor Power Factor:

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b) In addition to the above clause, for every 1% drop or part thereof in average power factor during
the month below 85% at the rate of 2% on the total amount of electricity bill for that month under
the head “Energy Charges”, arrived at using tariff as per para 11.2 of this schedule, will be charged.
11.6.2. Power Factor Rebate

If the power factor of the consumer’s installation in any month is above 95%, the consumer will be
entitled to a rebate at the rate of 0.5% (half percent) in excess of 95% power factor on the total
amount of electricity bill for that month under the head “Energy Charges”, arrived at using tariff as
per para 11.2 of this schedule, for every 1% rise or part thereof in the average power factor during
the month above 95%.

11.7. MAXIMUM DEMAND AND ITS MEASUREMENT:

The maximum demand in kW or kVA, as the case may be, shall mean an average kW/kVA supplied
during consecutive 30/15 minutes or if consumer is having parallel operation with the grid and has
opted for 3 minutes, period of maximum use where such meter with the features of reading the
maximum demand in kW/kVA directly, have been provided.

11.8. CONTRACT DEMAND:

The contract demand shall mean the maximum kW/kVA for the supply, of which the supplier
undertakes to provide facilities from time to time.

11.9. REBATE FOR SUPPLY AT HV and EHV:

On ENERGY CHARGES: Rebate @

1%
(a) If supply is availed at 11 kV/ 22 kV (HV)

1.5%
(b) If supply is availed at 33 kV/ 66 kV (EHV)

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If supply is availed at 132 kV and above 2%

11.10. TIME OF USE DISCOUNT

Concession of 60 Paise per Unit shall be applicable for the consumption of energy during
11:00 Hrs to 15:00 Hrs.

11.11. SEASONAL CONSUMERS TAKING HT SUPPLY:

11.11.1. The expression, “Seasonal Consumer”, shall mean a consumer who takes and uses
power supply for ice factory, ice-candy machines, ginning and pressing factory, oil mill,
rice mill, salt industry, sugar factory, khandsari, cold storage plants (including such plants
in fishery industry), tapioca industries manufacturing starch, pumping load or irrigation,
white coal manufacturers, vegetable dehydration industries.

11.11.2. Any consumer, who desires to be billed for the minimum charges on annual basis shall
intimate to that effect in writing at least one month before commencement of billing
period about the off-season during which energy consumption, if any, shall be mainly for
overhauling of the plant and machinery. The off-season period at any time shall be a full
calendar month/months. The total period of the off-season so declared and observed shall
be not less than three calendar months in a calendar year.

11.11.3. The total minimum amount under the head “Demand and Energy Charges” payable by a
seasonal consumer satisfying the eligibility criteria under sub-clause 11.11.1 above and
complying with provisions stipulated under sub-clause 11.11.2 above shall be Rs. 4550
per annum per kVA of the billing demand.

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11.11.4. The billing demand shall be the highest of the following:

a) The highest of the actual maximum demand registered during the calendar year.
b) Eighty-five percent of the arithmetic average of contract demand during the year.
c) One hundred kVA
11.11.5. Units consumed during the off-season period shall be charged for at the flat rate of 430
Paise per unit.

11.11.6. Electricity Bills paid during off-season period shall not be taken into account towards the
amount payable against the annual minimum bill. The amount paid by the consumer
towards the electricity bills for seasonal period only under the heads “Demand Charges”
and “Energy Charges” shall be taken into account while determining the amount payable
towards the annual minimum bill.

11.11.7. Seasonal consumer is required to submit to the Distribution Licensee an irrevocable Bank
Guarantee from a Nationalised or Scheduled Commercial Bank equal to the difference of
amount/ Bank Guarantee lying with the Licensee as Security Deposit and minimum bill
calculated at the rate shown in para 11.11.3 for the higher of Contract Demand or Billing
Demand. If the Contract Demand is revised upward during the calendar year, the
consumer shall submit a revised Bank Guarantee or additional Bank Guarantee as
calculated above to the Licensee. The cost of such Bank Guarantee/s shall be borne by
the consumer. It shall be the responsibility of the consumer to keep the bank guarantee/s
valid at all times and to renew the bank guarantee/s at least 1 months prior to its expiry.

12. RATE- HTP-II

Applicability: This tariff shall be applicable for supply of energy to HT consumers contracting for
100 kVA and above, requiring power supply for Water Works and Sewerage pumping stations run
by Local Authorities and GW & SB. GIDC Water Works.

12.1. DEMAND CHARGES:

Gujarat Electricity Regulatory Commission Page 387

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

12.1.1. For billing demand up to contract demand

(a) For the first 500 kVA of billing demand Rs. 115/- per kVA per month

(b) For next 500 kVA of billing demand Rs. 225/- per kVA per month

12.1.2. For billing demand in excess of contract demand

For billing demand in excess of contract demand Rs. 360 per kVA per month

PLUS
12.2. ENERGY CHARGES:

For entire consumption during the month

(a) Up to 500 kVA of billing demand 435 Paise per unit

(b) For billing demand above 500 kVA and up to 2500 kVA 455 Paise per Unit

PLUS

12.3. TIME OF USE CHARGES:

For energy consumption during the two peak periods, viz, 0700 Hrs to 1100 Hrs and 1800 Hrs. to
2200 Hrs.

(a) For Billing Demand up to 500 kVA 45 Paise per unit

Gujarat Electricity Regulatory Commission Page 388

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

For energy consumption during the two peak periods, viz, 0700 Hrs to 1100 Hrs and 1800 Hrs. to
2200 Hrs.

(b) For billing demand above 500 kVA 85 Paise per Unit

12.4. Billing Demand

12.5. Minimum Bill

12.6. Maximum demand and its measurement Same as HTP-I Tariff

12.7. Contract Demand

12.8. Rebate for supply at HV and EHV

12.9. Time of Use Discount

12.10. POWER FACTOR ADJUSTMENT CHARGES

12.10.1. Penalty for poor Power Factor:

a) The power factor adjustment charges shall be levied at the rate of 1% on the total amount of
electricity bills for the month under the head “Energy Charges”, arrived at using tariff as per para
12.2 of this schedule, for every 1% drop or part thereof in the average power factor during the
month below 90% up to 85%.
b) In addition to the above clause, for every 1% drop or part thereof in average power factor during
the month below 85% at the rate of 2% on the total amount of electricity bill for that month under
the head “Energy Charges”, arrived at using tariff as per para 12.2 of this schedule, will be charged.

12.10.2. Power Factor Rebate:

Gujarat Electricity Regulatory Commission Page 389

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

If the power factor of the consumer’s installation in any month is above 95%, the consumer will be
entitled to a rebate at the rate of 0.5% (half percent) in excess of 95% power factor on the total amount
of electricity bill for that month under the head “Energy Charges”, arrived at using tariff as per para
12.2 of this schedule, for every 1% rise or part thereof in the average power factor during the month
above 95%.

13. RATE- HTP-III

This tariff shall be applicable to a consumer taking supply of electricity at high voltage, contracting for
not less than 100 kVA for temporary period. A consumer not taking supply on regular basis under a
proper agreement shall be deemed to be taking supply for temporary period.

13.1. DEMAND CHARGES:

For billing demand up to contract demand Rs. 18/- per kVA per day

For billing demand in excess of contract demand Rs. 20/- per kVA per day

13.2. ENERGY CHARGES:

For all units consumed during the month 660 Paise/Unit

PLUS
13.3. TIME OF USE CHARGES:

Additional charge for energy consumption during two peak

85 Paise per Unit
periods, viz, 0700 Hrs. to 1100 Hrs. and 1800 Hrs. to 2200 Hrs.

Gujarat Electricity Regulatory Commission Page 390

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

13.4. Billing Demand

13.5. Minimum bill

13.6. Maximum demand and its measurement Same as HTP-I Tariff

13.7. Contract Demand

13.8. Rebate for supply at HV and EHV

13.9. POWER FACTOR ADJUSTMENT CHARGES

13.9.1. Penalty for poor Power Factor:

a) The power factor adjustment charges shall be levied at the rate of 1% on the total amount of
electricity bills for the month under the head “Energy Charges”, arrived at using tariff as per para
13.2 of this schedule, for every 1% drop or part thereof in the average power factor during the
month below 90% up to 85%.
b) In addition to the above clause, for every 1% drop or part thereof in average power factor during
the month below 85% at the rate of 2% on the total amount of electricity bill for that month under
the head “Energy Charges”, arrived at using tariff as per para 13.2 of this schedule, will be charged.
13.9.2. Power Factor Rebate:

If the power factor of the consumer’s installation in any month is above 95%, the consumer will be entitled
to a rebate at the rate of 0.5% (half percent) in excess of 95% power factor on the total amount of electricity
bill for that month under the head “Energy Charges”, arrived at using tariff as per para 13.2 of this schedule,
for every 1% rise or part thereof in the average power factor during the month above 95%.

14. RATE- HTP-IV

Gujarat Electricity Regulatory Commission Page 391

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

This tariff shall be applicable for supply of electricity to HT consumers opting to use electricity
exclusively during night hours from 10.00 PM to 06.00 AM next day and contracted for regular
power supply of 100 kVA and above.

14.1. DEMAND CHARGES:

1/3rd of the Fixed Charges specified in Rate HTP-I above

PLUS

14.2. ENERGY CHARGES:

For all units consumed during the month 225 Paise per unit

14.3. Billing Demand

14.4. Minimum Bill

14.5. Maximum demand and its measurement Same as HTP-I Tariff

14.6. Contract Demand

14.7. Rebate for supply at HV and EHV

14.8. POWER FACTOR ADJUSTMENT CHARGES:

14.8.1. Penalty for poor Power Factor:

Gujarat Electricity Regulatory Commission Page 392

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

14.8.2. Power Factor Rebate:

If the power factor of the consumer’s installation in any month is above 95%, the consumer will be
entitled to a rebate at the rate of 0.5% (half percent) in excess of 95% power factor on the total
amount of electricity bill for that month under the head “Energy Charges”, arrived at using tariff as
per para 14.2 of this schedule, for every 1% rise or part thereof in the average power factor during
the month above 95%.

NOTE:

1. 15% of the contracted demand can be availed beyond the night hours prescribed as per para
14 above.
2. 10% of total units consumed during the billing period can be availed beyond the night hours
prescribed as per para 14 above.
3. In case the consumer failed to observe condition no. 1 above during any of the billing month,
then demand charge during the relevant billing month shall be billed as per HTP-I category
demand charge rates given in para 11.1 of this schedule.
4. In case the consumer failed to observe condition no. 2 above during any of the billing month,
then entire energy consumption during the relevant billing month shall be billed as per HTP-
I category energy charge rates given in para 11.2 of this schedule.
5. In case the consumer failed to observe above condition no. 1 and 2 both during any of the
billing month, then demand charge and entire energy consumption during the relevant billing
month shall be billed as per HTP-I category demand charge and energy charge rates given in
para 11.1 and 11.2 respectively, of this schedule.
6. This tariff shall be applicable if the consumer so opts to be charged in place of HTP-I tariff
by using electricity exclusively during night hours as above.

Gujarat Electricity Regulatory Commission Page 393

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

7. This option can be exercised to shift from HTP-I tariff category to HTP-IV tariff or from
HTP-IV tariff category to HTP-I tariff four times in a calendar year by giving not less than
15 days’ advance notice in writing before commencement of billing period
15. RATE- HTP-V

HT - Agricultural (for HT Lift Irrigation scheme only)

This tariff shall be applicable for supply of electricity to High Tension Agricultural consumers
contracting for 100 kVA and above, requiring power supply for lifting water from surface water sources
such as canal, river and dam, and supplying water directly to the fields of farmers for agricultural
irrigation only.

15.1. DEMAND CHARGES:

Demand Charges Rs. 25 per kVA per month

PLUS

15.2. ENERGY CHARGES:

For all units consumed during the month 80 Paise/Unit

15.3. Billing Demand

15.4. Minimum bill

15.5. Maximum demand and its measurement Same as per HTP-I Tariff

15.6. Contract Demand

15.7. Rebate for supply at HV and EHV

15.8. POWER FACTOR ADJUSTMENT CHARGES

Gujarat Electricity Regulatory Commission Page 394

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

15.8.1. Penalty for poor power factor

a) The power factor adjustment charges shall be levied at the rate of 1% on the total amount of
electricity bills for the month under the head “Energy Charges”, arrived at using tariff as per para
15.2 of this schedule, for every 1% drop or part thereof in the average power factor during the
month below 90% up to 85%.
b) In addition to the above clause, for every 1% drop or part thereof in average power factor during
the month below 85% at the rate of 2% on the total amount of electricity bill for that month under
the head “Energy Charges”, arrived at using tariff as per para 15.2 of this schedule, will be charged
15.8.2. Power Factor Rebate

If the power factor of the consumer’s installation in any month is above 95%, the consumer will be
entitled to a rebate at the rate of 0.5% (half percent) in excess of 95% power factor on the total
amount of electricity bill for that month under the head “Energy Charges”, arrived at using tariff as
per para 15.2 of this schedule, for every 1% rise or part thereof in the average power factor during
the month above 95%.

16. RATE- RAILWAY TRACTION

This tariff is applicable for power supply to Railway Traction at 132 kV/66 kV.

16.1. DEMAND CHARGES:

(a) For billing demand up to the contract demand Rs. 180 per kVA per month

(b) For billing demand in excess of contract demand Rs. 425 per kVA per month

NOTE: In case of the load transfer for traction supply due to non-availability of power supply at preceding
or succeeding point of supply or maintenance at DISCOM’s level, excess demand over the contract demand
shall be charged at normal rate at appropriate point of supply.

Gujarat Electricity Regulatory Commission Page 395

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

Normal Demand Charges will also apply in case of bunching of trains. However, DISCOMs shall charge
excess demand charges while raising the bills and Railways have to give convincing details and
documentary proof of bunching of trains if they want to be charged at the normal demand charges. If
satisfactory proof of bunching of trains is provided, DISCOM shall consider that occasion for normal
demand charges, otherwise excess demand charges will be applicable specified as above at 16.1 (b).

PLUS

16.2. ENERGY CHARGES:

For all the units consumed during the month 500 Paise per Unit

16.3. Billing Demand:

16.4. Minimum Bill

16.5. Maximum demand and its measurement Same as HTP-I Tariff

16.6. Contract Demand

16.7. Rebate for supply at HV and EHV

16.8. POWER FACTOR ADJUSTMENT CHARGES

16.8.1. Penalty for poor Power Factor:

Gujarat Electricity Regulatory Commission Page 396

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

b) In addition to the above clause, for every 1% drop or part thereof in average power factor during
the month below 85% at the rate of 2% on the total amount of electricity bill for that month under
the head “Energy Charges”, arrived at using tariff as per para 16.2 of this schedule, will be charged.
16.8.2. Power Factor Rebate:

If the power factor of the consumer’s installation in any month is above 95%, the consumer will be
entitled to a rebate at the rate of 0.5% (half percent) in excess of 95% power factor on the total
amount of electricity bill for that month under the head “Energy Charges”, arrived at using tariff
as per para 16.2 of this schedule, for every 1% rise or part thereof in the average power factor
during the month above 95%.

17. RATE-HT ELECTRIC VEHICLE (EV) CHARGING STATIONS

This tariff is applicable to consumers who use electricity exclusively for Electric Vehicle Charging
installations.

Other consumers can use their regular electricity supply for charging electric vehicle under same regular
category i.e. HTP-I, HTP-II, HTP-III, HTP-IV, HTP-V, RAILWAY TRACTION as the case may be.

17.1. DEMAND CHARGES:

(a) For billing demand up to the contract demand Rs. 25/- per kVA per month

(b) For billing demand in excess of contract demand Rs. 50/- per kVA per month

PLUS

17.2. ENERGY CHARGES: FOR THE TOTAL MONTHLY CONSUMPTION

Gujarat Electricity Regulatory Commission Page 397

March 2025
Paschim Gujarat Vij Company Limited
Truing up for FY 2023-24 and Determination of Aggregate Revenue Requirement (ARR) for the 4th Control
Period (FY 2025-26 to FY 2029-30) & Tariff for FY 2025-26

ENERGY CHARGE 400 Paise per Unit

PLUS

17.3. TIME OF USE CHARGES:

Additional Charge for energy consumption during two
peak periods, viz, 07:00 Hrs to 11:00 Hrs and 18:00 Hrs to 45 Paise per Unit
22:00 Hrs

17.4. TIME OF USE DISCOUNT

Concession of 60 Paise per Unit shall be applicable for the consumption of energy during
11:00 Hrs to 15:00 Hrs.

17.5. Billing Demand:

17.6. Minimum Bill
17.7. Maximum demand and its measurement Same as HTP-I Tariff
17.8. Contract Demand
17.9. Rebate for supply at HV and EHV

Gujarat Electricity Regulatory Commission Page 398

March 2025

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