MERC approves AEML-T's ARR true-up for FY2022-24, provisional true-up for FY2024-25, and sets ARR for 5th Control Period FY2025-26 to FY2029-30, with detailed capex scrutiny
Case of Adani Electricity Mumbai Limited – Transmission (AEML-T) for Truing-up of Aggregate Revenue Requirement (ARR) for FY2022- 23 and FY 2023-24, Provisional Truing-up of ARR for FY2024 -25 and approval of ARR for 5th Control Period form FY 2025-26 to FY 2029-30
AEML-T filed a Multi-Year Tariff Petition on 31 October 2024 (revised 5 December 2024) seeking truing-up of its Aggregate Revenue Requirement (ARR) for FY2022-23 and FY2023-24, provisional truing-up for FY2024-25, and approval of ARR for the 5th Control Period (FY2025-26 to FY2029-30). The petition was filed under the MERC MYT Regulations, 2019 (for truing-up years) and MYT Regulations, 2024 (for the new control period), invoking Sections 61 and 62 of the Electricity Act, 2003. MSEDCL filed suggestions/objections during the public consultation process, which included a Technical Validation Session (28 Nov 2024) and a Public Hearing (8 Jan 2025).
- Approved truing-up of ARR for FY2022-23 and FY2023-24 under MYT Regulations, 2019
- Approved provisional truing-up of ARR for FY2024-25
- Approved ARR for the 5th Control Period FY2025-26 to FY2029-30 under MYT Regulations, 2024
- Approved several capex/NDPR schemes as capitalisation subject to conditions (e.g., OEM obsolescence certificates) - including Cable Sheath Monitoring (₹2.30 Cr), SCADA upgrade (₹2.02 Cr), PMU installation (₹4.90 Cr), CCTV replacement (₹1.50 Cr), and vertical fall arrester system (₹1.89 Cr + ₹0.51 Cr)
- Rejected capitalisation of routine maintenance items such as Phase Identification kits, Tool Kits, Office Chairs (₹0.03 Cr) and Occupancy Certificate-related expenses for Saki (₹0.17 Cr) and Magathane (₹0.80 Cr), reclassifying them as O&M/R&M expenses
- Directed continued compliance on pending matters: Bombay High Court case on AEML-T Saki to TPC Saki connectivity scheme, shifting of Contingency Reserve investment from mutual funds to Government Securities, and directions from the MTR Order in Case No. 201 of 2017
- AEML-T to submit final cost-benefit analysis and OEM certificates (obsolescence/useful-life completion) for several conditional capex approvals (battery sets, chargers, SCADA, CCTV)
- AEML-T to continue compliance reporting on Bombay High Court matter regarding Saki-TPC Saki connectivity scheme
- AEML-T to shift Contingency Reserve investments from Mutual Funds to Government Securities as previously directed
- AEML-T to comply with directions from the MTR Order in Case No. 201 of 2017
- Approved ARR for 5th Control Period to form basis for annual transmission charge determination from FY2025-26 onward
- Commission to monitor implementation of approved capex schemes through subsequent truing-up exercises
- • Transmission charges levied on distribution licensees (and pass-through to open-access/C&I consumers in Mumbai) will be based on the approved ARR for FY2025-26 to FY2029-30, affecting landed power cost
- • Capex approvals for grid reliability (PMUs, SCADA, cable monitoring) signal continued network strengthening in the Mumbai transmission system relevant to open-access and captive power evacuation
- • Stricter scrutiny distinguishing capex (NDPR) from O&M expenses indicates tighter regulatory discipline on cost pass-through, which could moderate future tariff escalation
- • C&I/open-access users relying on AEML-T's transmission network should track the finalized ARR figures and transmission tariff order for FY2025-26 to assess wheeling/transmission cost impact
This order is primarily a detailed cost-scrutiny exercise rather than a tariff-setting event with disclosed final numbers in the excerpt provided. The granular capex vetting (approving safety/reliability items like PMUs, SCADA, cable monitoring while rejecting routine tools/furniture as O&M) reflects MERC's continued rigor in ring-fencing capitalisation under the 2022 Capex Regulations. C&I and open-access stakeholders in Mumbai should obtain the full ARR and transmission charge schedule for FY2025-26 onward, as this order will directly drive transmission tariff components in their power cost stack for the next five years.
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.