MERC partly allows AEML-D's review of its 30-Mar-2020 MYT Order; corrects some cost items but defers nearly all financial relief to the upcoming Mid-Term Review (MTR)
Case filed by Adani Electricity Mumbai Limited (Distribution) for review of certain aspects of Multi Year Tariff (MYT) Order dated 30 March 2020 issued in Case No. 325 of 2019
AEML-D filed a review petition (24 June 2020) under Sec.94(1)(f) EA 2003 against MERC's MYT Order dated 30 March 2020 (Case 325/2019), citing 9 alleged errors split into Part A (post-AEML takeover: stand-by charges, AEML-G surplus, generation Fixed/Variable charges, Transmission and SLDC charges) and Part B (pre-AEML/RInfra period: interest rate on loan, Interest on Working Capital, Employee 'Other Allowance'). AEML-D sought corrections and immediate pass-through of resulting tariff relief to consumers, citing COVID-19 hardship.
- Rejected review on Stand-by Charges (~Rs.35.53-36.52 crore) - no error found on merits
- Allowed correction of AEML-G cumulative surplus (Rs.5.73 cr) - to be held in FAC stabilization fund and claimed with carrying cost in MTR
- Allowed correction of Fixed/Variable Charges (power purchase cost, ~Rs.12.5-14.3 cr/yr) and Transmission/MSLDC charges (~Rs.2.7-3.7 cr/yr) - to be adjusted via FAC mechanism / claimed in MTR
- Allowed correction of interest rate on FY2017-18 loan from 10.36% to 10.51% (additional ~Rs.2.37 cr) - to be claimed with carrying cost in MTR
- Rejected claims on actual Interest on Working Capital (Rs.88.77 cr FY17-18, Rs.45.60 cr FY18-19) and Employee 'Other Allowance' (Rs.122.04 cr) - new evidence treated as afterthought, no apparent error
- Rejected AEML-D's request for immediate tariff revision for FY2020-21 (Sec.62(4) EA 2003 permits only one revision/year); all financial impacts deferred to next MTR
- AEML-D to claim net financial impact of Issues II-V (surplus, generation/transmission/SLDC charges) along with carrying cost in the upcoming MTR proceedings
- AEML-D to maintain AEML-G surplus differential separately under a FAC stabilization fund pending MTR true-up
- Power purchase cost variation from corrected AEML-G Fixed/Variable Charges to be passed through the existing FAC mechanism
- Interest-on-loan correction (10.51%) and its consequential ARR impact (incl. tax effects) to be reconciled in MTR with carrying cost
- No mid-year tariff revision for FY2020-21; next tariff change only via scheduled MTR process
- AEML-D's pending APTEL appeals (Nos.105, 106 & 442 of 2019) on IoWC/stand-by issues remain sub-judice and unaffected by this order
- • No immediate tariff reduction or refund for FY2020-21 despite Commission acknowledging some errors - relief pushed to MTR, delaying cash-flow benefit to C&I/open-access consumers
- • Corrected power purchase, transmission and SLDC charge impacts will show up through the monthly FAC adjustment rather than a one-time tariff correction
- • Reaffirms strict one-tariff-revision-per-year discipline (Sec.62(4)), reducing scope for ad-hoc mid-year tariff relief sought by consumers or licensees
- • Signals that generation/transmission/SLDC order linkages feeding into distribution ARR are routinely reconciled only at MTR/next tariff cycle - useful for developers modelling multi-year cost pass-through timing
For C&I buyers and RE/storage developers tracking AEML-D tariffs, the practical takeaway is 'wait for MTR' - genuine cost corrections (transmission, SLDC, generation charges, interest) are accepted but bundled into the next Mid-Term Review with carrying cost rather than an immediate FAC/tariff pass-through, so near-term bills won't move. The stand-by charges, IoWC and O&M disputes being rejected also reduces AEML-D's cost base marginally, a mild positive for future ARR trajectory. Developers should track the MTR filing timeline for AEML-D as the next real trigger point for tariff changes.
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.