# MERC Adani Electricity Mumbai Limited (Distribution) Multi-Year Tariff (MYT) Order for FY2025-26 to FY2029-30 (Case No. 211 of 2024)

- **Issuing authority:** Maharashtra Electricity Regulatory Commission (MERC)
- **Case number:** 211 of 2024
- **Order date:** 28 March 2025
- **Petitioner:** Adani Electricity Mumbai Limited (Distribution)
- **Order type:** Multi-Year Tariff (MYT) Order
- **Control period:** CP-5 (FY2025-26 to FY2029-30)
- **Tariff regime:** Section 62, Electricity Act 2003
- **Length:** 470 pages
- **Official PDF:** https://merc.gov.in/wp-content/uploads/2025/03/AEML-D-Complete-Final-MYT-Order-28.03.2025-SD.pdf

## Section index

| Section | Title | Page |
|---|---|---|
| 1 | BACKGROUND AND BRIEF HISTORY | 278 |
| 1.0 |  Demand Assessment and Forecasting | 278 |
| 1.1 |  BACKGROUND | 278 |
| 1.2 |  MYT REGULATIONS, 2019 | 278 |
| 1.3 |  MYT ORDER FOR 4TH CONTROL PERIOD FROM FY 2020-21 TO 2024-25 | 278 |
| 1.4 |  MID-TERM REVIEW ORDER FOR 4TH CONTROL PERIOD | 278 |
| 1.5 |  MYT REGULATIONS, 2024 | 278 |
| 1.6 |  PETITION FOR APPROVAL OF MULTI-YEAR TARIFF, ADMISSION OF THE PETITION AND PUBLIC PROCESS | 27 |
| 1.7 |  ORGANISATION OF THE ORDER | 30 |
| 2 | SUGGESTIONS / OBJECTIONS, AEML-D'S RESPONSES AND COMMISSION'S RULING | 30 |
| 2.1 |  SALES PROJECTION | 30 |
| 2.2 |  DISTRIBUTION LOSS | 31 |
| 2.3 |  STANDBY CHARGES | 33 |
| 2.4 |  WHEELING CHARGES METHODOLOGY | 33 |
| 2.5 |  TARIFF HIKE | 36 |
| 2.6 |  FIXED/DEMAND CHARGES | 37 |
| 2.7 |  TARIFF FOR EV CHARGING STATIONS | 37 |
| 2.8 |  SUBSIDY, CROSS SUBSIDY & ACTUAL COST SHOULD BE REFLECTED IN BILLS | 39 |
| 2.9 |  RE TARIFF AND CAPPING OF CURRENT TARIFF | 39 |
| 2.10 |  VIRTUAL NET METERING AND GROUP NET METERING FOR ROOF-TOP SOLAR | 40 |
| 2.11 |  ADVANCE PAYMENT OPTION | 40 |
| 2.12 |  NEW CATEGORY UNDER LT CATEGORY | 41 |
| 2.13 |  DISTRICT COOLING SOLUTIONS UNDER INDUSTRIAL TARIFF CATEGORY | 43 |
| 2.14 |  LENGTH AND STRUCTURE OF EXECUTIVE SUMMARY DOCUMENT | 43 |
| 2.15 |  CATEGORY WISE TARIFF REVISION | 44 |
| 2.16 |  APPOINTMENT OF CONSUMER REPRESENTATIVE | 44 |
| 2.17 |  PUBLIC NOTICE TO BE CIRCULATED ALONG WITH BILLS | 44 |
| 2.18 |  TARIFF TO REFLECT COST OF SUPPLY | 44 |
| 2.19 |  MEASUREMENT OF LOAD CURVE | 44 |
| 2.20 |  UNITY POWER FACTOR | 45 |
| 2.21 |  BILLING DEMAND | 45 |
| 2.22 |  STANDBY & GRID SUPPORT CHARGES | 45 |
| 2.23 |  NO PENALTY FOR EXCEEDING THE CONTRACT DEMAND DURING NON-PEAK HOURS | 47 |
| 2.24 |  UNINTERRUPTED POWER | 47 |
| 2.25 |  CEILING TARIFF | 49 |
| 2.26 |  PRIVATIZATION OF ELECTRICITY | 49 |
| 2.27 |  GENERAL OBJECTIONS | 50 |
| 2.28 |  SALES MIX AND TARIFF PARITY | 52 |
| 2.29 |  PF & LF CONSIDERATION | 53 |
| 2.30 |  TARIFF PROPOSAL FOR HT AND LT | 53 |
| 2.31 |  FAC RECOVERY PROJECTIONS | 54 |
| 2.32 |  TARIFF TRAJECTORY DIFFERENCES | 54 |
| 2.33 |  REFUND OF CONSUMER SECURITY DEPOSIT AND THEFT OF ELECTRICITY METER BY AEML-D | 55 |
| 2.34 |  DELAY IN BILL GENERATION | 55 |
| 2.35 |  USE OF PROPERTY / RESOURCES BY OTHER DIVISIONS AND GROUP COMPANIES | 57 |
| 2.36 |  USE OF SOLAR POWER GENERATION FOR ALL OFFICES OF AEML-D AND REDUCE THE COST OF OPERATION | 57 |
| 2.37 |  AVERAGE BALANCE IN CURRENT BANK ACCOUNT | 58 |
| 2.38 |  REDUCTION IN TIME FOR PROCESSING OF ONLINE REQUEST | 58 |
| 2.39 |  PAST UNITS AND BILL AMOUNT DETAILS | 58 |
| 2.40 |  FAILURE TO SHOW kVAh IN THE BILLS | 59 |
| 2.41 |  PROMPT PAYMENT DISCOUNT ON POWER PURCHASE | 59 |
| 2.42 |  STATUS OF CGRF & OMBUDSMAN ORDER COMPLIANCE | 59 |
| 2.43 |  STATUS OF COMPLIANCE WITH SUPPLY CODE REGULATIONS, 2021 IN RESPECT OF POWER QUALITY | 59 |
| 2.44 |  GRID SUPPORT CHARGES ON SOLAR CONSUMPTION | 61 |
| 2.45 |  RECOVERY OF DEMAND CHARGES INSTEAD OF FIXED CHARGES FOR SERVICE CATEGORY | 61 |
| 2.46 |  TARIFF CHARGED TO PUBLIC TOILET BLOCKS | 63 |
| 2.47 |  REGULATIONS FOR MANDATORY SALE AND USE OF ENERGY EFFICIENT APPLIANCES | 64 |
| 2.48 |  THIRTY UNITS OF FREE ELECTRICITY TO ALL CONSUMERS IN BPL CATEGORY | 64 |
| 2.49 |  ADOPTION OF NON-TELESCOPIC TARIFF | 65 |
| 2.50 |  ISSUES RELATED TO AGRICULTURE CATEGORY | 65 |
| 2.51 |  AMENDMENTS TO ELECTRICITY SUPPLY CODE REGULATIONS | 67 |
| 2.52 |  Error in Public Notice published by AEML-D | 67 |
| 3 | TRUING UP FOR FY2022-23 AND FY 2023-24 | 67 |
| 3.0 |  Power Procurement Planning | 291 |
| 3.1 |  SALES FOR FY 2022-23 AND FY 2023-24 | 68 |
| 3.2 |  OPEN ACCESS CONSUMPTION | 72 |
| 3.3 |  CHANGEOVER SALES ON TPC-D NETWORK | 72 |
| 3.4 |  DEMAND-SIDE MANAGEMENT (DSM) MEASURES | 74 |
| 3.5 |  DISTRIBUTION LOSSES AND ENERGY BALANCE | 76 |
| 3.6 |  POWER PROCUREMENT | 80 |
| 3.7 |  OPERATION AND MAINTENANCE (O&M) EXPENSES | 110 |
| 3.8 |  CAPITALISATION | 123 |
| 3.9 |  CAPITALIZATION IN FY 2021-22 | 131 |
| 3.10 |  OPENING GROSS BLOCK FOR FY 2022-23 | 131 |
| 3.11 |  DEPRECIATION | 134 |
| 3.12 |  FINANCING PLAN AND INTEREST EXPENSES ON LOAN | 137 |
| 3.13 |  FERV | 146 |
| 3.14 |  RETURN ON EQUITY (ROE) | 147 |
| 3.15 |  INTEREST ON WORKING CAPITAL (IoWC) | 156 |
| 3.16 |  INTEREST ON CONSUMERS' SECURITY DEPOSIT | 156 |
| 3.17 |  PROVISION FOR BAD AND DOUBTFUL DEBTS | 165 |
| 3.18 |  CONTRIBUTION TO CONTINGENCY RESERVE | 166 |
| 3.19 |  DSM EXPENSES | 168 |
| 3.20 |  EV CHARGER EXPENSES | 168 |
| 3.21 |  NON-TARIFF INCOME (NTI) | 169 |
| 3.22 |  INCOME FROM OTHER BUSINESS | 169 |
| 3.23 |  EFFICIENCY GAIN/ (LOSS) FOR FY 2022-23 AND FY 2023-24 | 175 |
| 3.24 |  ISSUE RELATED TO TRUE-UP SURPLUS OF AEML-G | 180 |
| 3.25 |  ISSUE RELATED TO REVENUE FROM WHEELING CHARGES AND CSS FOR FY 2023-24 | 180 |
| 3.26 |  ISSUE RELATED TO REFUND OF STANDBY CHARGES FROM TPC-G | 181 |
| 3.27 |  SUMMARY OF AGGREGATE REVENUE REQUIREMENT | 182 |
| 3.28 |  REVENUE FROM OWN CONSUMER | 182 |
| 3.29 |  REVENUE FROM WHEELING CHARGES FROM CHANGE-OVER AND OPEN ACCESS CONSUMERS | 191 |
| 3.30 |  REVENUE FROM CROSS-SUBSIDY SURCHARGE FROM OA CONSUMERS | 191 |
| 3.31 |  REVENUE GAP | 193 |
| 4 | PROVISIONAL TRUING-UP FOR FY 2024-25 | 193 |
| 4.1 |  SALES | 196 |
| 4.2 |  DISTRIBUTION LOSSES AND ENERGY BALANCE | 205 |
| 4.3 |  POWER PROCUREMENT | 208 |
| 4.4 |  OPERATION AND MAINTENANCE EXPENSES | 229 |
| 4.5 |  CAPITALISATION | 230 |
| 4.6 |  DEPRECIATION | 232 |
| 4.7 |  FINANCING PLAN AND INTEREST EXPENSES | 234 |
| 4.8 |  RETURN ON EQUITY | 237 |
| 4.9 |  INTEREST ON WORKING CAPITAL | 240 |
| 4.10 |  INTEREST ON CONSUMER'S SECURITY DEPOSIT | 242 |
| 4.11 |  PROVISION FOR BAD AND DOUBTFUL DEBTS | 242 |
| 4.12 |  CONTRIBUTION TO CONTINGENCY RESERVE | 243 |
| 4.13 |  NON-TARIFF INCOME | 245 |
| 4.14 |  INCOME FROM OTHER BUSINESS | 246 |
| 4.15 |  SUMMARY OF AGGREGATE REVENUE REQUIREMENT | 248 |
| 4.16 |  REVENUE | 251 |
| 4.17 |  REVENUE GAP/SURPLUS FOR FY 2024-25 FOR THE WIRES BUSINESS AND RETAIL SUPPLY BUSINESS | 252 |
| 5 | AGGREGATE REVENUE REQUIREMENT FOR 5TH CONTROL PERIOD FROM FY 2025-26 TO FY 2029-30 | 252 |
| 5.1 |  SALES | 254 |
| 5.2 |  APPROACH FOR PROJECTION OF NUMBER OF CONSUMERS FOR THE CONTROL PERIOD | 269 |
| 5.3 |  DISTRIBUTION LOSSES AND ENERGY BALANCE | 272 |
| 5.4 |  RESOURCE ADEQUACY AND POWER PROCUREMENT PLANNING | 276 |
| 5.5 |  POWER PURCHASE QUANTUM AND COST | 294 |
| 5.6 |  OPERATION AND MAINTENANCE EXPENSES | 317 |
| 5.7 |  TOTEX FOR SMART METER IMPLEMENTATION | 322 |
| 5.8 |  CAPITAL EXPENDITURE AND CAPITALISATION | 326 |
| 5.9 |  DEPRECIATION | 330 |
| 5.10 |  INTEREST ON LONG-TERM LOAN | 332 |
| 5.11 |  INTEREST ON WORKING CAPITAL | 336 |
| 5.12 |  INTEREST ON CONSUMER SECURITY DEPOSIT | 336 |
| 5.13 |  RETURN ON EQUITY | 338 |
| 5.14 |  PROVISION FOR BAD AND DOUBTFUL DEBTS | 341 |
| 5.15 |  CONTRIBUTION TO CONTINGENCY RESERVE | 342 |
| 5.16 |  NON-TARIFF INCOME | 344 |
| 5.17 |  INCOME FROM OTHER BUSINESS | 344 |
| 5.18 |  PAST PERIOD ADJUSTMENT | 347 |
| 5.19 |  TRUE-UP SURPLUS OF AEML-G | 347 |
| 5.20 |  AGGREGATE REVENUE REQUIREMENT FOR FY 2025-26 TO FY 2029-30 | 353 |
| 6 | CUMULATIVE REVENUE GAP, TARIFF PHILOSOPHY AND CATEGORY-WISE TARIFFS FOR FY 2025-26 TO FY 2029-30 | 353 |
| 6.1 |  INCREMENTAL REVENUE GAP/SURPLUS FOR FY 2022-23 | 353 |
| 6.2 |  REVENUE GAP / SURPLUS FOR FY 2023-24 | 358 |
| 6.3 |  PROVISIONAL REVENUE GAP / SURPLUS FOR FY 2024-25 | 358 |
| 6.4 |  CUMULATIVE REVENUE GAP / SURPLUS TILL FY 2025-26 | 360 |
| 6.5 |  APPROACH FOR RECOVERY OF PAST GAP / (SURPLUS) | 361 |
| 6.6 |  ALLOCATION OF ASSETS AND COST AT DIFFERENT VOLTAGE LEVELS AND COMPUTATION OF WHEELING CHARGES | 366 |
| 6.7 |  CROSS SUBSIDY SURCHARGE (CSS) | 375 |
| 6.8 |  AVERAGE COST OF SUPPLY (ACoS) | 375 |
| 6.9 |  RETAIL AVERAGE COST OF SUPPLY | 381 |
| 6.10 |  TARIFF REVISION | 383 |
| 6.11 |  TARIFF DESIGN CONSIDERATION | 384 |
| 6.12 |  REVISED TARIFF FOR THE CONTROL PERIOD FROM FY 2025-26 TO FY 2029-30 | 419 |
| 7 | SCHEDULE OF CHARGES | 430 |
| 8 | DIRECTIVES IN THIS ORDER | 430 |
| 8.1 |  SUMMARY OF DIRECTIVES | 439 |
| 9 | APPLICABILITY | 439 |
| 9.1 |  APPLICABILITY OF REVISED TARIFF | 440 |
| 9.2 |  APPLICABILITY OF ORDER | 440 |
| 10 | ANNEXURE I (A): REVENUE WITH REVISED TARIFFS FOR FY 2025-26 | 442 |
| 11 | ANNEXURE I (B): REVENUE WITH REVISED TARIFFS FOR FY 2026-27 | 443 |
| 12 | ANNEXURE I (C): REVENUE WITH REVISED TARIFFS FOR FY 2027-28 | 444 |
| 13 | ANNEXURE I (D): REVENUE WITH REVISED TARIFFS FOR FY 2028-29 | 445 |
| 14 | ANNEXURE I (E): REVENUE WITH REVISED TARIFFS FOR FY 2029-30 | 446 |
| 15 | ANNEXURE II: TARIFF SCHEDULE FOR FY 2025-26 TO FY 2029-30 | 447 |
| 16 | APPENDIX – 1: List of persons who attended the Technical Validation Session (TVS) held on 24 December, 2024 | 447 |
| 17 | APPENDIX – 2: List of persons who attended Public Hearing dated 18 February, 2025 | 483 |

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