Infraline Annual Conference -

Rationalization of Power Tariff in

India

20th September, 2013

Business Model

2

Interest + RoE @ 16% (post tax)

Retail Tariff determined

by Regulator

Public Hearing

Incentives and Penalties for Over/ Under Achievement of Regulatory

Targets

Profit linked to Regulator’s Approved Investment and not Revenues

Govt. Subsidy Revenue

Actual Power Purchase Cost (Payment to

Gencos & Transcos)

Normative Expenses (Establishment + A&G +

R&M Costs) Depreciation

• A&G – Administrative & General • R&M – Repair & Maintenance Cost

Tariff Comparative Chart

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States/ Discoms Domestic - 5 KW Commercial -

LT - 10 KW

Industrial -

LT - 10 KW

Industrial HT -

100 KW/108

KVA - Supply at

11 kV

Last Tariff Order

Date/Effective From

Units-> 200 400 1500 1500 15000

Delhi 290 415 857 813 750 1st Aug 2013

Mumbai – BEST 420 496 940 865 893 1st Jun 2012

Haryana - Gurgaon 564 610 700 685 714 1st March 2013

Gujrat 369 412 445 445 530 1st March 2013

Karnataka 470 515 743 513 640 30th Apr 2012

Punjab 594 591 635 658 553 1st Apr 2013

Uttar Pradesh 508 444 728 735 770 19th Oct 2012

Rajasthan 516 517 666 518 651 9th Aug 2012

Madhya Pradesh 534 581 657 480 672 1st Apr 2012

Kolkata 586 652 780 621 796 1st Dec 2012

AT&C Loss & Revenue Gap

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States/ Discoms AT&C Losses (%)

Gap* Rs./kwh

Delhi-TPDDL 15.67 1.44

Delhi- BYPL 25.54 2.28

Delhi- BRPL 16.65 1.87

Mumbai – MSEDCL 21.63 0.21

Haryana - Gurgaon 27.69 1.15

Gujrat- MGVCL 14.40 0.04

Karnataka-BESCOM 22.55 0.44

Punjab-PSPCL 20.58 0.23

Uttar Pradesh-MVVN 42.65 1.22

Rajasthan-JVVNL 23.18 3.05

Madhya Pradesh- Paschim Kshetra 34.43 0.39

Kolkata-WBSEDCL 32.90 0.44

Source: PFC Report (FY12) *Subsidy/ Revenue on realized basis

Tariff Vs. Power Purchase Cost TPDDL

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Units&

Tariff

2001-02

2002- 03

2003-04

2004-05

2005-06

2006- 07

2007-08

2008- 09

2009- 10

2010- 11

2011-12

2012-13

% Increase

11 yr CAGR

0-200

180 180 205 220 240 240 245 245 245 245 315 400 122% 7.5%

201-400

300 300 325 360 390 390 395 395 395 395 504 496 65% 5%

PPC* 152 152 157 199 211 219 300 286 368 425 529 545 258% 12.3

%

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Thank You