IN THE APPELLATE TRIBUNAL FOR ELECTRICITY (Appellate Jurisdiction)

APPEAL No. 301 OF 2015 Dated: 28^th January, 2025 Present : Hon`ble Mr. Sandesh Kumar Sharma, Technical Member Hon`ble Mr. Virender Bhat, Judicial Member In the matter of:

TATA POWER DELHI DISTRIBUTION LIMITED (Through its CEO)

NDPL House, Hudson Lines Kingsway Camp New Delhi – 110009 … Appellant(s)

Versus DELHI ELECTRICITY REGULATORY COMMISSION (Through its Secretary)

Viniyamak Bhavan, ‘C’ Block, Shivalik, Malviya Nagar New Delhi – 110017 … Respondent(s)

Counsel on record for the Appellant(s) : Amit Kapur Anupam Varma Rahul Kinra Aditya Gupta Aditya Ajay Girdhar Gopal Khattar Isnain Muzamil Counsel on record for the Respondent(s) : Dhananjay Baijal

J U D G M E N T

PER HON’BLE MR. VIRENDER BHAT, JUDICIAL MEMBER

1. The order dated 29.09.2015 passed by the respondent Delhi Electricity Regulatory Commission (DERC) on the tariff petition filed by the appellant seeking truing up of Annual Revenue Requirement (ARR) for Financial Year (FY) 2013-2014, the second year of the Multi Year Tariff (MYT) control period 2013-2015 as well as for approval of revised ARR for the FY 2014-2015 along with approval of ARR for FY 2015-2016 is under challenge in this appeal.

2. The appellant company, Tata Power Delhi Distribution Limited (TPDDL), is a joint venture between the Tata Power Company Limited (TPCL) and the Government of National Capital Territory of Delhi with majority stake i.e. 51% shareholding held by TPCL. Upon unbundling of the erstwhile Delhi Vidyut Board (DVB) under the Delhi Electricity Reform Act, 2000, into separate distribution, transmission and generation companies, appellant company was incorporated under the provisions of the Companies Act, 1956. It is a distribution licensee in terms of Section 14 of the Electricity Act, 2003, read with Delhi Electricity Reforms Act, 2000, and took over the distribution of electricity in North and Northwest Delhi with effect from 01.07.2002. Since then, the appellant has been carrying out the distribution and retail supply of electricity in the said area of Delhi.

3. The respondent Commission was established under the provisions of Electricity Regulation Commissions Act, 1998, and continues to exercise jurisdiction as the State Regulatory Commission for Delhi under Section 82 of the Electricity Act, 2003, read with Delhi Electricity Reforms Act, 2000.

4. The impugned order has been passed by the Commission with regard to truing up for the FY 2013-2014 and regarding distribution tariff for the FY

2014-2015.

5. According to the appellant, the Commission has erred in disallowing the requirements of the appellant under various heads and in reopening the concluded tariff order of the Commission for the previous financial year, which is contrary to the prevailing laws as well as the decisions of this Tribunal.

6. Following 75 issues have been formulated by the appellant for consideration of this Tribunal in this appeal which have also been categorized under different heads:

“a) Acted contrary to the principles of APTEL/MYT Order/Statutes/Regulations.

Issue No.1- Non Truing-UP of the capitalization for the current year Trued Up (i.e. FY 2013-14) and From FY 2005-06 onwards till FY

2012-13.

Issue No.2- Erroneous consideration of reversal of doubtful debt for FY 2007-08, FY 2008-09 & FY 2010-11 as non-tariff income.

Issue No.3- Non Compliance by the Learned Commission of its own directive regarding year end provision for power purchase cost.

Issue No.4- Disallowance of rebate provided by the Appellant while selling surplus power.

Issue No.5- Erroneous computation of normative rebate on power purchase cost.

Issue No.12- Wrongful deduction of interest/ short-term capital gain from the ARR for the year 2013-14.

Issue No.14- 8% Deficit Recovery Surcharge (DRS) excluded from the collection for the year 2013-14.

Issue No.15- Own consumption of the Distribution Licensee.

Issue No.16- Disallowance of Other Expenses.

Issue No.17- Wrongful consideration of income from g