Saturday, December 26, 2009

Calculation of Wheeling Charges - RTI reply from MERC

Those who are interested in switching over from RINFRA to Tata, already know that they would still need to pay RINFRA 'wheeling charges' - which is charged by the network owner to the billing/distribution supplier.

MERC in its Interim Order has stated that Wheeling Charges should be paid even by switchover customers.

The question in my mind was how is the Wheeling Charges calculated for TPC and RINFRA and the following details were provided by MERC (under RTI).

RINFRA-D's Low Tension (LT) for FY 2009-10, is calculated as under:
1. Wheeling Charges for the year Rs. 121 per kW per month
2. Contract Demand is 4600 MVA / MW
3. Wheeling Cost for the year is Rs. 667.92 cr (121 x 4600 x 12 / 10000)
4. Annual Sales for the year is 7560.17 Million Units
5. WC is Rs. 0.88 per kWh (667.92 / 7560.17 x 10)

RINFRA-D's High Tension (HT) for FY 2009-10, is calculated as under:
1. Wheeling Charges for the year Rs. 108 per kW per month
2. Contract Demand is 317 MVA / MW
3. Wheeling Cost for the year is Rs. 41.06 cr (108 x 317 x 12 / 10000)
4. Annual Sales for the year is 896.59 Million Units
5. WC is Rs. 0.46 per kWh (41.06 / 896.59 x 10)

TPC-D's Low Tension (LT) for FY 2009-10, is calculated as under:
1. Wheeling Charges for the year Rs. 160 per kW per month
2. Contract Demand is 110 MVA / MW
3. Wheeling Cost for the year is Rs. 21.15 cr (160 x 110 x 12 / 10000)
4. Annual Sales for the year is 572.23 Million Units
5. WC is Rs.. 0.37 per kWh (21.15 / 572.23 x 10)

TPC-D's High Tension (HT) for FY 2009-10, is calculated as under:
1. Wheeling Charges for the year Rs. 78 per kW per month
2. Contract Demand is 398 MVA / MW
3. Wheeling Cost for the year is Rs. 37.25 cr (78 x 398 x 12 / 10000)
4. Annual Sales for the year is 2065.90 Million Units
5. WC is Rs. 0.18 per kWh (37.25 / 2065.90 x 10)

For an RINFRA switchover consumer. Take the standard TPC rate, then deduct the TPC-WC (0.37) and then add the RINFRA-WC (0.88).

An Excel sheet is available with me, for those who are interested in doing 'what-if' scenarios.

RTI can get us information - but once we receive it, experts need to 'decode' it and then take follow up action. Many of the technical experts would be interested in this info and how it will affect us going forward.

There is still a VALID dispute whether switchover consumers need to pay the RINFRA WC at all or not - and this matter is also being taken up by the BIJLEE Group.

Trust this has been of help.

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