# MERC Brihanmumbai Electric Supply and Transport Undertaking Multi-Year Tariff (MYT) Order for FY2025-26 to FY2029-30 (Case No. 207 of 2024)

- **Issuing authority:** Maharashtra Electricity Regulatory Commission (MERC)
- **Case number:** 207 of 2024
- **Order date:** 28 March 2025
- **Petitioner:** Brihanmumbai Electric Supply and Transport Undertaking (BEST)
- **Order type:** Multi-Year Tariff (MYT) Order
- **Control period:** CP-5 (FY2025-26 to FY2029-30)
- **Tariff regime:** Section 62, Electricity Act 2003
- **Length:** 415 pages
- **Official PDF:** https://merc.gov.in/wp-content/uploads/2025/03/Final-MYT-Order_BEST_207-of-2024_for-uploading-_1.pdf

## Section index

| Section | Title | Page |
|---|---|---|
| 1 | BACKGROUND AND BRIEF HISTORY | 14 |
| 1.1 |  Background | 14 |
| 1.2 |  MYT Regulations | 14 |
| 1.3 |  Petition and Main Prayers of BEST | 18 |
| 1.4 |  Admission of the Petition and Public Consultation Process | 19 |
| 1.5 |  Organisation of the Order | 19 |
| 2 | SUGGESTIONS/OBJECTIONS, BEST'S RESPONSES AND THE COMMISSION'S RULINGS | 19 |
| 2.1 |  Background | 21 |
| 2.2 |  Payment of Standby Charges | 21 |
| 2.3 |  Electric Vehicle (EV) Charging Tariff | 22 |
| 2.4 |  Tariff Reduction due to Higher RE Purchase | 22 |
| 2.5 |  Advance Payment Option | 24 |
| 2.6 |  Virtual Net Metering | 24 |
| 2.7 |  kVAh Billing | 24 |
| 2.8 |  Issuance of Public Notice | 24 |
| 2.9 |  Change in Slabs of Electricity Bill | 26 |
| 2.10 |  Levy of Wheeling Charges | 27 |
| 2.11 |  Two Pager Summary of the ARR shall be provided to each Consumer along with Bill | 30 |
| 2.12 |  Offenses Committed | 30 |
| 2.13 |  Ineligibility under Revamped Distribution Section Scheme (RDSS) | 31 |
| 2.14 |  Appointment of AMISP (M/s Adani Transmission Ltd.) | 33 |
| 2.15 |  Solar Farms installation in Bus Depots | 33 |
| 2.16 |  EV Charging Facility in Bus Depots | 33 |
| 2.17 |  Introduce Trams to replace Buses | 34 |
| 2.18 |  Payment of MCGM Dividends | 34 |
| 2.19 |  Power Purchase from Walwhan Solar Energy @ Rs. 8.56/kWh | 34 |
| 2.20 |  Inflated Operation and Maintenance Costs | 36 |
| 2.21 |  Disallowance of additional Tariff recovery from Consumers till legality of Smart Meters installed is decided | 37 |
| 2.22 |  Rs. 27.000/- Crore spent on Smart Meters | 39 |
| 2.23 |  Replies to RTI Queries | 39 |
| 2.24 |  Smart Meters are being used as Electronic Meters (Issue of Manual Billing)... | 39 |
| 2.25 |  Notice for the Replacement of Smart Meter gives no Choice of Meter | 41 |
| 2.26 |  Recovery of Cost of Smart Meters should be Fixed Cost rather than Variable Cost | 41 |
| 3 | TRUING UP OF FY 2022-23 AND FY 2023-24 | 41 |
| 3.1 |  Background | 41 |
| 3.2 |  Energy Sales | 44 |
| 3.3 |  Distribution Losses and Energy Balance | 47 |
| 3.4 |  Power Purchase Expenses | 50 |
| 3.5 |  Operation and Maintenance Expenses | 74 |
| 3.6 |  Capital Expenditure and Capitalisation | 82 |
| 3.7 |  Funding of Capitalisation | 87 |
| 3.8 |  Depreciation | 88 |
| 3.9 |  Interest on Long-Term Loan | 91 |
| 3.10 |  Interest on Working Capital | 95 |
| 3.11 |  Interest on Consumer Security Deposit | 99 |
| 3.12 |  Contribution to Contingency Reserves | 100 |
| 3.13 |  Other Expenses | 101 |
| 3.14 |  Provision of Bad and Doubtful Debts | 103 |
| 3.15 |  Return on Equity | 104 |
| 3.16 |  Return as Interest on Internal Funds | 111 |
| 3.17 |  Sharing of Gains/(Losses) on account of uncontrollable Factors | 112 |
| 3.18 |  Non-Tariff Income | 118 |
| 3.19 |  Revenue for FY 2022-23 and FY 2023-24 | 120 |
| 3.20 |  True-up of Aggregate Revenue Requirement for FY 2022-23 and FY 2023-24... | 121 |
| 4 | PROVISIONAL TRUE-UP OF FY 2024-25 | 121 |
| 4.1 |  Background | 121 |
| 4.2 |  Energy Sales | 129 |
| 4.3 |  Distribution Losses and Energy Balance | 132 |
| 4.4 |  Power Purchase Expenses | 135 |
| 4.5 |  Operation and Maintenance Expenses | 153 |
| 4.6 |  Capital Expenditure and Capitalisation | 161 |
| 4.7 |  Funding of Capitalisation | 165 |
| 4.8 |  Depreciation | 166 |
| 4.9 |  Interest on Long Term Loan | 167 |
| 4.10 |  Interest on Working Capital | 170 |
| 4.11 |  Interest on Consumer Security Deposit | 173 |
| 4.12 |  Contribution to Contingency Reserves | 173 |
| 4.13 |  Other Expenses | 174 |
| 4.14 |  Provision of Bad and Doubtful Debts | 174 |
| 4.15 |  Return on Equity | 176 |
| 4.16 |  Return on Internal Funds | 179 |
| 4.17 |  Non-Tariff Income | 179 |
| 4.18 |  Revenue from Existing Tariff | 180 |
| 4.19 |  Provisional Truing-up of Aggregate Revenue Requirement of FY 2024-25 | 182 |
| 5 | ARR FOR 5TH CONTROL PERIOD FOR FY 2025-26 TO FY 2020-30 | 182 |
| 5.1 |  Background | 182 |
| 5.2 |  Resource Adequacy Plan | 186 |
| 5.3 |  Scrutiny of the RA Plan as per the provisions of the MERC RA Regulations, 2024 | 187 |
| 5.4 |  Energy Sales | 203 |
| 5.5 |  Distribution Losses and Energy Balance | 214 |
| 5.6 |  Power Purchase Expenses | 219 |
| 5.7 |  Operation and Maintenance Expenses | 239 |
| 5.8 |  Capital Expenditure and Capitalisation | 245 |
| 5.9 |  Funding of Capitalisation | 250 |
| 5.10 |  Depreciation | 251 |
| 5.11 |  Interest on Long Term Loan | 255 |
| 5.12 |  Interest on Working Capital | 260 |
| 5.13 |  Interest on Consumer Security Deposit | 264 |
| 5.14 |  Contribution to Contingency Reserves | 265 |
| 5.15 |  Other Expenses | 268 |
| 5.16 |  Provision for Bad and Doubtful Debts | 269 |
| 5.17 |  Return on Equity | 271 |
| 5.18 |  Return as Interest on Internal Funds | 271 |
| 5.19 |  Non-Tariff Income | 275 |
| 5.20 |  Non-Compliance to the Directions of the Commission | 276 |
| 5.21 |  Summary of Aggregate Revenue Requirement for FY 2025-26 to FY 2029-30 | 279 |
| 6 | TARIFF PHILOSOPHY | 279 |
| 6.1 |  Cumulative Revenue Requirement and Revenue Gap/(Surplus) for FY 2023-24 and FY 2024-25 | 284 |
| 6.2 |  Carrying/(Holding) Cost on Revenue Gap/(Surplus) post Truing-up of FY 2022-23 and FY 2023-24 | 289 |
| 6.3 |  Cumulative ARR for MYT Control Period | 292 |
| 6.4 |  Cost of Supply | 294 |
| 6.5 |  kVAh Billing for LT Consumers Categories above 20 kW | 297 |
| 6.6 |  Fixed Cost Recovery | 298 |
| 6.7 |  Wheeling Charges | 302 |
| 6.8 |  Energy Charges | 305 |
| 6.9 |  Cross-Subsidy | 308 |
| 6.10 |  Time-of-Day (ToD) Tariff | 311 |
| 6.11 |  Advance Payment | 322 |
| 6.12 |  Green Energy Tariff | 323 |
| 6.13 |  Prepaid Meter Rebate | 323 |
| 6.14 |  Net Metering for the Regenerative Braking – Metro | 323 |
| 6.15 |  Rebate for Bulk Consumption | 326 |
| 6.16 |  Discount on Digital Payment to Consumers | 326 |
| 6.17 |  Overall Tariff Philosophy | 327 |
| 6.18 |  Tariff for 5th MYT Control Period | 328 |
| 7 | SCHEDULE OF CHARGES | 328 |
| 7.1 |  Schedule of Charges for MYT 5th Control Period | 339 |
| 8 | COMPLIANCE TO DIRECTIVES | 339 |
| 8.1 |  Background | 339 |
| 8.2 |  Replacement of Electro-Mechanical Meters with Electronic Meter | 353 |
| 8.3 |  Submission of DPR for Smart Meter | 353 |
| 8.4 |  Benefits/CBA due to Smart Meter installation | 353 |
| 8.5 |  Smart Meter implementation plan | 354 |
| 8.6 |  Funding of Capital Expenditure | 354 |
| 8.7 |  Reduction in Distribution loss | 356 |
| 8.8 |  Demand Response Scheme for saving power purchase expenses | 357 |
| 8.9 |  Delay in Bill Generation | 357 |
| 8.10 |  Sharing of Historical Data of Energy Consumption | 357 |
| 8.11 |  Financial Accounting of BEST | 359 |
| 8.12 |  Publishing Energy Accounting Report | 359 |
| 8.13 |  Improvement in Energy Billing System | 359 |
| 8.14 |  Contribution to Contingency Reserves | 359 |
| 8.15 |  Consumer Security Deposit (CSD) | 360 |
| 8.16 |  kVAh Billing for Consumer categories having load above 20 kW | 360 |
| 8.17 |  Time of Day Tariff | 360 |
| 8.18 |  Stabilising variation in consumer bill on account of FAC | 362 |
| 8.19 |  Summary of Directives issued in this Order | 364 |
| 9 | APPLICABILITY | 364 |
| 9.1 |  Applicability of Tariff | 365 |
| 9.2 |  Applicability of Order | 367 |

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