MERC issues corrigendum correcting sales, wires ARR, revenue-surplus and standby-charge errors in TPC-D's FY23-24/FY24-25 MTR Order; no retail tariff change ordered now
Corrigendum Order: Case of The Tata Power Company Ltd. (Distribution) for approval of True-up of Aggregate Revenue Requirement (ARR) for FY 2019-20, FY 2021-22 and FY 2021-22, Provisional Truing-up of ARR for FY 2022-23, and approval of Revised ARR and Tariff for FY 2023-24 and FY 2024-25
MERC's MTR Order dated 31 March 2023 in Case 225 of 2022 approved TPC-D's true-up for FY19-20 to FY21-22, provisional true-up for FY22-23, and revised ARR/tariff for FY23-24 and FY24-25. Post-issuance, several computational and cross-referencing errors were identified relating to wheeled sales, wires ARR, category-wise sales projections, TPC-G revenue surplus/standby charge pass-through to TPC-D, and mismatch between ARR tables and retail tariff determination. This corrigendum corrects those errors.
- Corrected Wheeled Sales/Wires Cost tables: Wires ARR was understated by Rs 21.11 Cr (FY23-24) and Rs 20.70 Cr (FY24-25) due to erroneous use of Net Wires Recovery instead of gross
- Corrected FY24-25 category-wise sales in Annexure I(B), which had erroneously mirrored FY23-24 sales figures
- Held that TPC-D's share of TPC-G's approved Revenue Surplus, Rs 215.61 Crore (Rs 148.51 Cr + Rs 67.10 Cr), was not considered in TPC-D's Supply ARR by oversight
- Found TPC-D's ARR for FY23-24 overstated by net Rs 20.91 Crore due to incorrect addition (instead of deduction) of TPC-G's Standby Charges refund of Rs 21.78 Crore
- Noted Total ARR in Table 6-12 (Rs 4,512.64 Cr FY23-24; Rs 4,743.38 Cr FY24-25) did not net off Wheeling Charges/CSS revenue from OA consumers (Rs 50.75 Cr FY23-24; Rs 63.57 Cr FY24-25) while setting retail tariff
- Directed that all above financial impacts for FY23-24/FY24-25 be reconciled only at the time of true-up in the next tariff determination, consistent with past practice; restored omitted applicability clauses (public lighting, gardens, traffic signals, water fountains) under LT IV(B) - Public Services Others category
- All identified ARR/revenue-surplus/standby-charge impacts for FY23-24 and FY24-25 to be reconciled only during the respective year's true-up in the next tariff order, not via retrospective tariff revision now
- TPC-G to refund approved Standby Charges (TPC-D's share Rs 21.78 Crore) in April 2023 as already directed in Case 221 of 2022
- TPC-D to apply corrected category-wise sales, wires cost and sales figures per this corrigendum for internal computation/monitoring purposes
- Corrected Applicability clauses for LT IV(B) - Public Services Others to be reflected in TPC-D's tariff schedule/billing systems
- • No immediate change to approved retail tariffs for FY23-24/FY24-25 for C&I consumers despite the corrected ARR figures; corrections will only flow through in the next true-up cycle
- • HT/EHV industrial and commercial open-access consumers should note corrected OA sales volumes (HT OA at 205 MU, EHT OA at 15 MU) and higher wires cost allocation used for wheeling charge computation
- • C&I open-access users' cross-subsidy surcharge (CSS) and wheeling charge revenue contributions (Rs 50.75 Cr and Rs 63.57 Cr) were not netted against retail tariff in the original order — future tariff orders may adjust for this, affecting future OA charges
- • Developers/RE procurers relying on TPC-D's wheeling/CSS rates should track the forthcoming true-up order for potential upward/downward revision stemming from these Rs 200+ Crore corrections
This is a housekeeping corrigendum, not a fresh tariff decision — retail tariffs for FY23-24/FY24-25 remain unchanged for now. However, the scale of corrections (over Rs 300 Crore in aggregate across wires ARR, TPC-G surplus and standby charges) signals a meaningful true-up exposure in TPC-D's next tariff filing. C&I and OA consumers in TPC-D's license area should expect a true-up adjustment (likely a tariff increase given the net ARR corrections favor higher recovery) and should factor this into medium-term power cost planning and OA cost-benefit models.
Growthifye does not take responsibility for the accuracy of this information. Values are compiled from tariff orders published on the websites of State Electricity Regulatory Commissions and distribution licensees (plus CEA / MoP / Grid-India), parsed automatically and shown with their source. Always verify against the signed order before any commercial decision. This one-pager is a Vidura-assisted summary of the official order; the signed order prevails.