NSEFI Appeal on TNERC Solar Tariff Order – Judgement Details
SUMMARY OF ORDER
- i) Capital Cost:
TNERC to follow the CERC’s final order on benchmark Capital Cost for discovering the fair tariff.
- ii) Evacuation Cost:
TNERC should consider compensation for evacuation (inter-face line cost) from the pooling sub-station at the generator’s end, upto the grid sub-station, over and above the benchmark Capital Cost as considered by CERC.
State Commission to re-compute depreciation by following methodologies and principles prescribed and followed by all other state electricity regulatory commissions and CERC i.e. differential depreciation approach. We further direct the State Commission to ensure that aggregate depreciation provided is not less than the 90% of capital cost.
- iv) Spares
TNERC to re compute the tariff by factoring costs for maintenance spares while calculating the working capital, by following the principles and methodology adopted by CERC in this regard.
- v) Degradation of Modules
We direct the State Commission that the tariff determination must specifically factor for module degradation and reduction of generation while calculating the levelized tariff.
- vi) Auxiliary Consumption
vii) Return on Equity
Tariff do not deliver the entitled RoE of pre tax 20%. TNERC to re determine the tariff to ensure that the levelized tariff ensures recovery of the revenues permissible to the developers during the life cycle of the plant at the energy sent out with degradation. The permissible revenues mean, inter alia, revenues that will deliver a pre tax RoE of 20% to the developers.
viii) Miscellaneous / (CUF, Discount Factor, O&M Expenses) Issues
- Appeals are partly allowed.
- The impugned order is hereby set aside.
- State Commission shall pass the consequential order within three months from the date of the present Judgment & Order as per the directions given above.
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