Home India Government of The National Capital Territory of Delhi DERC Tariff...
Date: 06-Apr-2023 Category: Extra Ordinary State: Union Government Country: India

DERC Tariff

Issued by Government of The National Capital Territory of Delhi · Other Departments

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Executive Summary & Key Takeaways

What it means

  • The gazette notification pertains to the first amendment to the Delhi Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) Regulations, 2017.
  • The amendments address the determination of tariff, specifically focusing on the effective tax rate, weighted average rate of interest, and Renewable Purchase Obligation (RPO) costs.

Key Changes

  • Effective Tax Rate: The effective tax rate for a financial year will be derived from the Income Tax returns.
  • Weighted Average Rate of Interest: The weighted average rate of interest for a financial year will include interest paid, bank charges, syndication fees, and other charges paid for raising and maintaining loans during that year.
  • Renewable Purchase Obligation (RPO) Cost: The cost of RPO for distribution licensees will be computed based on the approved cost of power procurement from renewable energy sources, as specified in the Delhi Electricity Regulatory Commission (Renewable Purchase Obligation and Renewable Energy Certificate Framework Implementation) Regulations, 2021, and subsequent amendments.
  • RPO Shortfall Penalty: The penalty for a shortfall in RPO will be 10% of the weighted average REC price discovered at the Power Exchange (IEX) for the trued-up year.
  • True-up of Expenses: Actual expenses for power procurement from renewable energy sources and purchase of Renewable Energy Certificates will be trued up by the Commission.
  • RPO Targets: The Commission will specify targets for Wind RPO, Other RPO, and HPO in the Business Plan Regulations for a specific Control Period.
  • Non-Fulfillment of RPO Penalty: The penalty for not meeting RPO targets, as specified in the Commission's Tariff Order, will be adjusted in the ARR during the true-up of the relevant financial year.
  • Applicability: The regulations are applicable from April 1, 2023.

Impact Analysis

Distribution Licensees

  • Action Items: Licensees should review their existing power purchase agreements and internal processes to align with the amended regulations. They should also prepare for potential penalties related to RPO shortfalls.

Renewable Energy Generators

  • Action Items: Generators should monitor the RPO targets set by the Commission and adjust their production and sales strategies accordingly.

Consumers

  • Action Items: Consumers should be informed about the changes in tariff structures and the impact of renewable energy integration on their electricity bills.

Delhi Electricity Regulatory Commission (DERC)

  • Action Items: DERC needs to update its internal processes and guidelines to reflect the amended regulations. They should also communicate the changes to all stakeholders.

Financial Institutions

  • Action Items: Financial institutions should assess the credit risk associated with RPO compliance and adjust lending terms accordingly.

Key Entities Referenced

Delhi Electricity Regulatory Commission (DERC): The regulatory body responsible for setting tariffs and overseeing the electricity sector in Delhi. Electricity Act, 2003: The principal legislation governing the electricity sector in India, under which DERC derives its powers. Delhi Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) Regulations, 2017: The original regulations that are being amended by this notification. Delhi Electricity Regulatory Commission (Renewable Purchase Obligation and Renewable Energy Certificate Framework Implementation) Regulations, 2021: Regulations specifying the framework for RPO compliance and REC trading. Power Exchange (IEX): A platform for trading electricity and Renewable Energy Certificates (RECs).
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रजिस्ट्री स.ं डी.एल.- 33002/99 REGD. No. D. L.-33002/99 भारत सरकार GOVERNMENT OF INDIA एस.जी.-डी.एxलxx.G-अID.H-1x0x0x 42023-245059 SG-DLxx-ExG-1ID0E0x4x2x0 23-245059 असाधारण EXTRAORDINARY प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 3] दिल्ली, बृहस्ट्पजतिार, अप्रैल 6, 2023/चत्रै 16, 1945 [रा.रा.रा.क्षे.दि. स.ं 4 No. 3] DELHI, THURSDAY, APRIL 6, 2023/CHAITRA 16, 1945 [N. C. T. D. No.4 भाग III PART III राष्ट्रीय रािधानी राज्य क्षत्रे दिल्ली सरकार GOVERNMENT OF THE NATIONAL CAPITAL TERRITORY OF DELHI fnYyh] 6 vI©zy] 2023 दिल्ली जिद्यतु जिजनयामक आयोग (टैररफ के जनधारा ण के जलए जनयम और ित)ें (प्रथम सिं ोधन) जिजनयम, 2023 F.3(679)/Tariff/DERC/2022-23/7460/27—जिद्युत अजधजनयम, 2003 (2003 का अजधजनयम 36) की धारा 61 और धारा 86(1)(बी) के साथ परित, धारा 181 के अंतगात प्रित्त िजियों का प्रयोग करते हुए और इस संबंध म ें इसे सक्षम करन े िाली अन्य सभी िजियों और जपछल े प्रकािन के बाि, दिल्ली जिद्युत जिजनयामक आयोग एति ् द्वारा,दिल्ली जिद्युत जिजनयामक आयोग(टैररफ के जनधाारण के जलए जनयम और ितें)जिजनयम, 2017 (इसके बाि "प्रमुख जिजनयम" के रूप म ेंसंिर्भात) म ेंसंिोधन करन े के जलए जनम्नजलजखत जिजनयम जनमााण करता ह:ै 2344 DG/2023 (1)2 DELHI GAZETTE : EXTRAORDINARY PART III] 1.0 सजं क्षप्त िीर्का और प्रारंभ: (1) इन जिजनयमों को दिल्ली जिद्युत जिजनयामक आयोग(टैररफ के जनधाारण के जलए जनयम और ितें) ( प्रथम संिोधन)जिजनयम, 2023 कहा िा सकता ह ैऔर य े1/04/2023 से लाग ूहोंगे। 2.0 प्रमखु जिजनयमों के जिजनयम 72 म ें नया प्रािधान: "बिते दक संबंजधत जित्तीय िर्ा की प्रभािी कर िर आयकर ररटना से प्राप्त की िाएगी।" 3.0 प्रमखु जिजनयमों के जिजनयम 77 म ें िोडा गया नया प्रािधान: " बित े दक दकसी जित्तीय िर्ा के जलए ब्याि की भाररत औसत िर भुगतान दकए गए ब्याि, सभी बैंक िल्ु कों, ससंजडकेिन िल्ु क और संबंजधत ऋणों को बढाने और बनाए रखने के जलए उस िर्ा के िौरान भुगतान दकए गए अन्य िुल्कों को िाजमल करके जनकाली िाएगी।" 4.0 प्रमखु जिजनयमों के जिजनयम 124 म ेंसिं ोधन: "(124) जितरण लाइसेंसधारी के निीकरणीय खरीि िाजयत्ि(आरपीओ) की लागत की गणना दिल्ली जिद्युत जनयामक आयोग (निीकरणीय खरीि िाजयत्िऔर निीकरणीय ऊिाा प्रमाणपत्र फ्रेमिका कायाान्ियन) जिजनयम, 2021 में यथा जिजनर्िाष्ट निीकरणीय ऊिाा स्रोतों से जिद्युत अजधप्राजप्त की अनुमोदित लागत और उसके बाि के संिोधनों के आधार पर की िाएगी: बिते दक आरपीओ म ें कमी की मात्रा के जलए िुमााना ट्रू-अप िर्ा के जलए पािर एक्सचेंि (आईईएक्स) में खोिे गए भाररत औसत आरईसी मूल्य का 10% होगा। आग ेबित े दक निीकरणीय ऊिाा स्रोतों से जिद्युत अजधप्राजप्त और निीकरणीय ऊिा ाप्रमाणपत्रों की खरीि के जलए िास्ट्तजिक खच ाआयोग द्वारा ट्रू-अप दकया िाएगा: बिते यह भी दक यह आयोग जिजिष्ट जनयंत्रण अिजध के जलए व्यिसाय योिना जिजनयमों में पिन आरपीओ, अन्य आरपीओ और एचपीओ के जलए लक्ष्य जनर्िाष्ट करेगा: बिते यह भी दक आरपीओ लक्ष्यों को परू ा न करन े के जलए िमु ााना, िैसादक इस आयोग द्वारा अपन े टैररफ आिेि में जनर्िाष्ट दकया गया ह,ै संबंजधत जित्तीय िर्ा के टू-अप के िौरान एआरआर में समायोजित दकया िाएगा।" , सजचि DELHI ELECTRICITY REGULATORY COMMISSION NOTIFICATION Delhi, the 6 April, 2023 Delhi Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) (First Amendment) Regulations, 2023 F.3(679)/Tariff/DERC/2022-23/7460/27.—In exercise of powers conferred under Section 181 read with Section 61 and Section 86(1)(b) of the Electricity Act, 2003 (Act 36 of 2003) and all other powers enabling it in this behalf, the Delhi Electricity Regulatory Commission hereby makes the following Regulations to amend the Delhi Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) Regulations, 2017(hereinafter referred to as “the Principal Regulations”): 1.0 Short Title and Commencement: (1) These Regulations may be called the Delhi Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) (First Amendment) Regulations, 2023and shall be applicable from 1/04/2023 onwards.[PART III DELHI GAZETTE : EXTRAORDINARY 3 2.0 New Proviso in Regulation 72 of Principal Regulations: “Provided that Effective Tax Rate of the respective Financial Year shall be derived from the Income Tax returns.” 3.0 New Proviso added in Regulation 77 of Principal Regulations: “Provided that Weighted Average Rate of Interest for any Financial Year shall be arrived by including the Interest Paid, all Bank Charges, Syndication Fee and other Charges paid during that year for Raising and Maintaining of the respective loans.” 4.0 Amendment in Regulation 124 of Principal Regulations: “(124) The cost of Renewable Purchase Obligation (RPO) of the Distribution Licensee shall be computed on the basis of approved cost of power procurement from Renewable Energy Sources as specified in the Delhi Electricity Regulatory Commission (Renewable Purchase Obligation and Renewable Energy CertificateFramework Implementation) Regulations, 2021 and subsequent amendments thereof: Provided that penalty for quantum of shortfall in RPO shall be 10% of weighted average REC price discovered at Power Exchange (IEX) for the Trued-up Year. Provided further that the actual expenses for procurement of power from Renewable Energy Sources and purchase of Renewable Energy Certificates shall be trued up by the Commission: Provided also that the Commission will specify the targets for Wind RPO,Other RPO and HPO in the Business Plan Regulations for a specific Control Period: Provided also that the penalty for non fulfilment of RPO targets, as specified by the Commission in its Tariff Order, shall be adjusted in the ARR during True up of the relevant Financial Year.” RAJESH DANGI, Secy. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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