# MERC Tata Power Company Limited (Distribution) Multi-Year Tariff (MYT) Order for FY2025-26 to FY2029-30 (Case No. 210 of 2024)

- **Issuing authority:** Maharashtra Electricity Regulatory Commission (MERC)
- **Case number:** 210 of 2024
- **Order date:** 28 March 2025
- **Petitioner:** Tata Power Company 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:** 327 pages
- **Official PDF:** https://merc.gov.in/wp-content/uploads/2025/03/Final-MYT-Order-Case-No.-210-of-2024_TPC-D-280325.pdf

## Section index

| Section | Title | Page |
|---|---|---|
| 1 | BACKGROUND AND BRIEF HISTORY | 17 |
| 1.1 |  BACKGROUND | 17 |
| 1.2 |  MYT REGULATIONS | 17 |
| 1.3 |  PETITION AND MAIN PRAYERS OF TPC-D | 20 |
| 1.4 |  ADMISSION OF THE PETITION AND PUBLIC CONSULTATION PROCESS | 20 |
| 1.5 |  ORGANISATION OF THE ORDER | 21 |
| 2 | SUGGESTIONS/OBJECTIONS, TPC-D'S RESPONSES AND COMMISSION'S RULINGS | 21 |
| 2.1 |  PAYMENT OF STANDBY CHARGES | 21 |
| 2.2 |  ELECTRIC VEHICLE (EV) CHARGING TARRIFF | 22 |
| 2.3 |  TARIFF REDUCTION DUE TO HIGHER RE PURCHASE | 22 |
| 2.4 |  ADVANCE PAYMENT OPTION | 22 |
| 2.5 |  VIRTUAL NET METERING | 25 |
| 2.6 |  KVAH BILLING | 25 |
| 2.7 |  ISSUANCE OF PUBLIC NOTICE | 25 |
| 2.8 |  EXECUTIVE SUMMARY | 25 |
| 2.9 |  DISCREPANCY IN DATA | 26 |
| 2.10 |  TARIFF RELATED MATTERS AND TARIFF FOR CHANGEOVER CONSUMERS | 28 |
| 2.11 |  DETAILS IN MONTHLY ELECTRICITY BILLS | 29 |
| 2.12 |  NET METERING FACILITY FOR REGENERATIVE BRAKING GENERATION | 29 |
| 2.13 |  CEILING TARIFF FOR MUMBAI UTILITIES | 30 |
| 2.14 |  GREEN ENERGY ATTRIBUTES | 32 |
| 2.15 |  SALES FOR 5TH CONTROL PERIOD | 32 |
| 2.16 |  POWER PURCHASE | 32 |
| 2.17 |  WHEELING CHARGES | 33 |
| 2.18 |  CROSS SUBSIDY SURCHARGE (CSS) | 33 |
| 3 | TRUING-UP OF AGGREGATE REVENUE REQUIREMENT FOR FY 2023-24 | 33 |
| 3.1 |  SALES | 34 |
| 3.2 |  OPEN ACCESS SALES | 34 |
| 3.3 |  DISTRIBUTION LOSSES AND ENERGY INPUT REQUIREMENT | 37 |
| 3.4 |  POWER PURCHASE QUANTUM AND COST | 41 |
| 3.5 |  OPERATION AND MAINTENANCE EXPENSES | 55 |
| 3.6 |  CAPITALISATION | 64 |
| 3.7 |  DEPRECIATION | 68 |
| 3.8 |  INTEREST ON LONG-TERM LOAN AND OTHER FINANCE CHARGES | 69 |
| 3.9 |  INTEREST ON WORKING CAPITAL (IOWC) | 72 |
| 3.10 |  INTEREST ON CONSUMERS' SECURITY DEPOSIT | 72 |
| 3.11 |  RETURN ON EQUITY | 73 |
| 3.12 |  PROVISION FOR BAD AND DOUBTFUL DEBTS | 80 |
| 3.13 |  DSM EXPENDITURE | 80 |
| 3.14 |  CONTRIBUTION TO CONTINGENCY RESERVE | 81 |
| 3.15 |  NON-TARIFF INCOME | 81 |
| 3.16 |  SHARING OF GAINS AND LOSSES | 83 |
| 3.17 |  AGGREGATE REVENUE REQUIREMENT | 89 |
| 3.18 |  REVENUE FROM SALE OF ELECTRICITY | 92 |
| 3.19 |  REVENUE GAP/(SURPLUS) | 92 |
| 4 | PROVISIONAL TRUING UP OF FY 2024-25 | 92 |
| 4.1 |  SALES | 93 |
| 4.2 |  OPEN ACCESS SALES | 98 |
| 4.3 |  DISTRIBUTION LOSSES AND ENERGY INPUT REQUIREMENT | 99 |
| 4.4 |  POWER PURCHASE QUANTUM AND COST | 101 |
| 4.5 |  OPERATION AND MAINTENANCE EXPENSES | 101 |
| 4.6 |  CAPITALISATION | 110 |
| 4.7 |  DEPRECIATION | 113 |
| 4.8 |  INTEREST ON LONG-TERM LOAN | 114 |
| 4.9 |  INTEREST ON WORKING CAPITAL | 116 |
| 4.10 |  INTEREST ON CONSUMER SECURITY DEPOSIT (CSD) | 117 |
| 4.11 |  RETURN ON EQUITY | 119 |
| 4.12 |  PROVISION FOR BAD AND DOUBTFUL DEBTS | 119 |
| 4.13 |  CONTRIBUTION TO CONTINGENCY RESERVE | 120 |
| 4.14 |  NON-TARIFF INCOME (NTI) | 120 |
| 4.15 |  DEMAND SIDE MANAGEMENT EXPENSES | 120 |
| 4.16 |  AGGREGATE REVENUE REQUIREMENT FOR FY 2024-25 | 121 |
| 4.17 |  REVENUE FOR FY 2024-25 | 124 |
| 4.18 |  REVENUE GAP/(SURPLUS) FOR FY 2024-25 | 124 |
| 5 | AGGREGATE REVENUE REQUIREMENT FOR FY 2025-26 TO FY 2029-30 | 124 |
| 5.1 |  RESOURCE ADEQUACY AND POWER PROCUREMENT PLANNING | 127 |
| 5.2 |  SCRUTINY OF THE RA PLANNING AS PER THE PROVISIONS OF THE MERC RA REGULATIONS 2024. | 130 |
| 5.3 |  SALES | 145 |
| 5.4 |  DISTRIBUTION LOSSES AND ENERGY BALANCE | 159 |
| 5.5 |  POWER PURCHASE QUANTUM AND COST | 162 |
| 5.6 |  OPERATION AND MAINTENANCE EXPENSES | 179 |
| 5.7 |  CAPITALISATION | 182 |
| 5.8 |  DEPRECIATION | 184 |
| 5.9 |  INTEREST ON LONG-TERM LOAN | 187 |
| 5.10 |  INTEREST ON WORKING CAPITAL | 188 |
| 5.11 |  INTEREST ON CONSUMER SECURITY DEPOSIT (CSD) | 191 |
| 5.12 |  RETURN ON EQUITY | 192 |
| 5.13 |  PROVISION FOR BAD AND DOUBTFUL DEBTS | 195 |
| 5.14 |  CONTRIBUTION TO CONTINGENCY RESERVE | 198 |
| 5.15 |  DSM EXPENDITURE | 201 |
| 5.16 |  NON-TARIFF INCOME | 205 |
| 5.17 |  AGGREGATE REVENUE REQUIREMENT FOR FY 2025-26 TO FY 2029-30 | 206 |
| 6 | CUMULATIVE REVENUE GAP, TARIFF PHILOSOPHY AND CATEGORY-WISE TARIFFS FOR 5TH CONTROL PERIOD | 206 |
| 6.1 |  CUMULATIVE PAST RECOVERIES OF ARR TILL FY 2024-25 | 208 |
| 6.2 |  ADDITIONAL GAP | 211 |
| 6.3 |  CARRYING COST ON PAST GAP | 219 |
| 6.4 |  TOTAL GAP UPTO FY 2024-25 | 220 |
| 6.5 |  PROPOSED RECOVERY OF GAP / (SURPLUS) FOR FY 2025-26 TO FY 2029-30 | 222 |
| 6.6 |  OVERALL TARIFF PHILOSOPHY AND AVERAGE COST OF SUPPLY | 225 |
| 6.7 |  CROSS SUBSIDY STRUCTURE | 226 |
| 6.8 |  TPC-D'S TARIFF PHILOSOPHY | 229 |
| 6.9 |  FIXED COST VS FIXED CHARGES | 232 |
| 6.10 |  WHEELING CHARGES AND WHEELING LOSS | 234 |
| 6.11 |  CROSS SUBSIDY SURCHARGE (CSS) TO BE MADE APPLICABLE FOR OPEN ACCESS CONSUMERS (NON-CAPTIVE) | 238 |
| 6.12 |  ADDITIONAL SURCHARGE FOR THE CONTROL PERIOD | 238 |
| 6.13 |  DEMAND FOR HT AND LT CONSUMERS | 242 |
| 6.14 |  LOAD FACTOR INCENTIVE (LFI) | 243 |
| 6.15 |  STANDBY CHARGES | 244 |
| 6.16 |  TIME OF DAY (TOD) CHARGES | 245 |
| 6.17 |  TARIFF TO EV CHARGING STATION | 253 |
| 6.18 |  SPECIAL CONCESSION FOR GREEN HYDROGEN PROJECTS | 255 |
| 6.19 |  KVAH BILLING | 259 |
| 6.20 |  REBATE FOR BULK CONSUMPTION | 261 |
| 6.21 |  ADVANCE PAYMENT | 261 |
| 6.22 |  GREEN POWER TARIFF | 263 |
| 6.23 |  PREPAID METER REBATE | 263 |
| 6.24 |  OVERALL TARIFF PHILOSOPHY | 263 |
| 6.25 |  TARIFF FOR  $5^{\mathrm{TH}}$  MYT CONTROL PERIOD | 267 |
| 7 | SCHEDULE OF CHARGES | 267 |
| 7.1 |  SCHEDULE OF CHARGES | 277 |
| 8 | DIRECTIVES IN THIS ORDER | 277 |
| 8.1 |  SUMMARY OF DIRECTIVES | 286 |
| 9 | APPLICABILITY | 286 |
| 9.1 |  APPLICABILITY OF TARIFF | 286 |
| 9.2 |  APPLICABILITY OF ORDER | 289 |

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