MERC issues corrigendum correcting oversights in AEML-D's 31 Mar 2023 MTR Order; errors to be adjusted in future true-ups, not current tariff
Corrigendum Order: Case of Adani Electricity Mumbai Limited (Distribution Business) for Approval of Truing-up of FY 2019-20 to FY 2021-22, Provisional Truing-up for FY 2022-23 and Revised Aggregate Revenue Requirement for FY 2023-24 and FY 2024-25
MERC had passed the MTR Order dated 31 March 2023 for AEML-D covering truing-up of FY2019-20 to FY2021-22, provisional truing-up for FY2022-23, and revised ARR for FY2023-24 and FY2024-25. On review, the Commission identified four inadvertent errors/omissions in that Order relating to (i) non-deduction of AEML-G's true-up surplus from AEML-D's Supply ARR/tariff for FY2023-24, (ii) non-inclusion of AEML-D's share of Standby Charges refund from TPC-G, (iii) non-consideration of approved Wheeling Charges and CSS revenue from Change-over/Open Access consumers while setting retail tariff, and (iv) omission of certain applicability clauses under LT IV(B) Public Services-Others tariff category. This corrigendum was issued to record and correct these errors.
- Confirmed that AEML-D's Supply Business ARR for FY2023-24 should have been Rs.6561.30 Cr (after deducting Rs.47.48 Cr AEML-G surplus) but tariff was erroneously based on Rs.6608.78 Cr (surplus not deducted)
- Confirmed AEML-D's share of Rs.29.21 Cr Standby Charges refund (from TPC-G's approved Rs.87.63 Cr total refund) was inadvertently excluded from AEML-D's MTR Order
- Confirmed Rs.471.42 Cr (FY2023-24) and Rs.509.91 Cr (FY2024-25) of approved Wheeling Charges and CSS revenue from Changeover/Open Access consumers was not factored into retail tariff determination
- Directed that all above impacts (Sr.1-3) be addressed only in the true-up of the respective years in the next tariff determination process, consistent with past practice (per Case No.103 of 2020)
- Approved corrective insertion of omitted applicability clauses (items p-s: public street lighting, public gardens, traffic signals/islands, public water fountains) under LT IV(B) Public Services-Others category to align with the original MYT Order dated 30 March 2020
- No change made to current FY2023-24/FY2024-25 tariff schedules or amounts as a result of this corrigendum
- Impact of AEML-G surplus, Standby Charges refund, and Wheeling/CSS revenue mismatches to be reconciled in true-up filings for FY2023-24 and FY2024-25 in the next tariff cycle
- TPC-G directed (per Case 221 of 2022) to refund Rs.87.63 Cr total Standby Charges (incl. Rs.29.21 Cr to AEML-D) in April 2023
- Tariff Schedule for LT IV(B) Public Services-Others stands corrected with immediate effect to include omitted applicability clauses (streetlights, public gardens, traffic signals, water fountains)
- No revision to FY2023-24/FY2024-25 approved tariffs at this stage; corrections are procedural/accounting adjustments for future true-up
- Stakeholders should track AEML-D's subsequent true-up petition for actual pass-through of these adjustments
- Consumers under LT IV(B) category should verify billing aligns with restored applicability clauses
- • C&I open access and change-over consumers should note that Wheeling Charges/CSS revenue shortfalls (~Rs.471-510 Cr) are deferred to future true-up, meaning potential future tariff/surcharge adjustments rather than immediate relief
- • No immediate change to current FY2023-24/FY2024-25 retail tariffs for C&I consumers from this corrigendum; effective tariffs remain as per the original 31 March 2023 MTR Order
- • Entities in LT IV(B) Public Services-Others category (e.g., municipal/public lighting under C&I contracts) should confirm billing reflects restored applicability clauses
- • Open access and OA-CSS payers should monitor upcoming true-up proceedings, as under/over-recovery of Rs.471-510 Cr in wheeling/CSS revenue could affect future OA charges
This is a housekeeping corrigendum, not a tariff revision - it flags accounting/computation errors (surplus pass-through, standby refund, wheeling/CSS revenue) that MERC has chosen to reconcile only in future true-ups rather than reopening current tariffs. C&I and OA consumers see no immediate bill impact, but should watch AEML-D's next true-up filing closely as cumulative adjustments (potentially Rs.500+ Cr across two years) could influence future ARR and cross-subsidy surcharge trajectories. The LT IV(B) correction is minor and consumer-category specific.
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.