MERC approved truing-up of AEML-T's transmission ARR for FY19-20 to FY21-22, provisional truing-up for FY22-23, and revised ARR for FY23-24 & FY24-25, after re-classifying disputed non-DPR capex items into Capex/R&M for gain-sharing purposes.
Case of Adani Electricity Mumbai Limited – Transmission (AEML-T) for Truing-up of Aggregate Revenue Requirement (ARR) for FY2019-20, FY 2020-21 and FY 2021-22, Provisional Truing-up of ARR for FY2022-23 and approval of Revised ARR for FY 2023-24 and FY 2024-25
AEML-T filed a Mid-Term Review petition on 1 Nov 2022 (revised 21 Dec 2022) seeking truing-up of its transmission ARR for FY2019-20, FY2020-21 and FY2021-22 under MYT Regulations 2015, provisional truing-up of FY2022-23 and revised ARR projections for FY2023-24 and FY2024-25 under MYT Regulations 2019. The petition covered capex/capitalisation, O&M expenses, interest costs, RoE, non-tariff income and revenue from transmission charges, following a technical validation session and public hearing.
- Approved Truing-up of ARR for FY2019-20, FY2020-21 and FY2021-22 as per detailed heads (Capex, O&M, Depreciation, Interest, RoE, Income Tax, Non-Tariff Income).
- Approved Provisional Truing-up of ARR for FY2022-23.
- Approved Revised ARR for FY2023-24 and FY2024-25 including capital investment plan, O&M, depreciation, interest and RoE.
- Re-classified numerous 'Non-DPR' works (FY2020-21 to FY2024-25) into Capex or R&M categories for sharing-of-gains/losses treatment, with totals of ₹33.90 Cr (FY20-21), ₹11.30 Cr (FY21-22), ₹9.67 Cr (FY22-23), ₹29.99 Cr (FY23-24) and ₹24.31 Cr (FY24-25).
- Noted 32 unutilised transmission bays (as of end-January 2023) submitted by AEML-T across Aarey, Versova, Ghodbunder, Chembur, Saki, Borivali and Goregaon substations.
- Directed recovery of transmission charges as detailed in Section 6 of the Order and specified applicability of the Order in Section 7.
- AEML-T to give effect to the Commission's truing-up findings for FY2019-20 to FY2021-22 in its accounts and future ARR filings.
- Provisional truing-up for FY2022-23 to be reconciled in the next true-up cycle once actual data is available.
- Revised ARR for FY2023-24 and FY2024-25 to form the basis for transmission charge recovery as per Section 6 of the Order.
- Sharing of gains/losses on O&M and capex re-classified items (Non-DPR works) to be applied as directed in Appendices 3, 4 and 6.
- AEML-T to address utilisation status of the 32 identified unutilised bays going forward.
- Compliance and applicability of the Order to be governed as per Section 7 (Applicability of the Order).
- • Mumbai C&I consumers and open-access users on AEML-T's network should watch for consequential transmission tariff/charge revisions arising from the approved ARR truing-up.
- • Re-classification of capex vs R&M affects capitalisation and hence the RoE/depreciation base that ultimately feeds into transmission charges paid by all users including open-access consumers.
- • Developers evaluating open-access or captive projects routed via AEML-T's transmission network should factor in the revised ARR trajectory for FY2023-24 and FY2024-25 in cost projections.
- • Unutilised bay inventory disclosed may signal available headroom for new connectivity/evacuation requests at specific substations (Aarey, Versova, Chembur, Borivali, Goregaon).
This order is largely a technical/accounting exercise—reconciling actual vs approved capex, O&M and financing costs for AEML-T's transmission business and re-classifying disputed 'Non-DPR' works into Capex or R&M buckets that determine gain/loss sharing. For C&I buyers and developers, the direct relevance is limited to eventual transmission charge/tariff impact and substation bay availability; the excerpt lacks the actual ARR gap/tariff figures needed to assess bill impact, so track the full order for revenue-gap and tariff schedules before drawing commercial conclusions.
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.