 Scope of regulation

• Wheeling tariff
• Retail supply tariff

 General Approach and guiding principles

• MYT tariff framework for ARR
• Segregation of wheeling and supply business
• Controlled and uncontrolled cost- Fuel , wages , maintenance , interest , return ,inflation

 Business Plan
• Distribution license filed not less than 120 days before commencement of first year
• Broadly classify the cost incurred
• Annual review of performance
• Periodic review of license

 Procedure for tariff determination

• ARR filing by 30th Niv of every year

 Principles for ARR determination- In next slide

 Power Purchase
 Distribution Loss
 Sales Revenue
 O & M expenses
 Determination of salaries , wages and pension
 Determination of A&G expenses
 Capital Investment
• Covers spending on capital equipment & fixed Assets\
• Capital structure
• Capital schedule
• Financing plan
• Cost benefit analysis

 Interest and Finance charges

 Return on equity
 Provision for bad debts
 Depreciation
 TRUING UP
• Filing of application each year for TRUING UP by 1st week of October
• Truing up should be filed for actual expense