6. Revenue Requirement

6.1 Fixed Charges

The aggregate fixed charges for the year amount to Rs.302.18 crores largely due to breakdown maintenance of one of the generating unit, higher operating, repair and maintenance costs due to the aging of the plant and repeated backing down of units and frequent tripping of transmission lines adversely impacting plant efficiency. The Petitioner therefore requests the Honourable Commission to approve the fixed charges at Rs.302.18 crores and fixed tariff charge at Rs.1.80/kWh for the FY 2007-08.

6.2 Variable/Energy Charges

The aggregate variable/energy charges computed for the year amount to Rs. 158.90 crores based on the normal escalation in fuel prices and actual specific fuel consumption resulting in energy tariff charge of Rs.1.075/kWh. Petitioner therefore requests the Honourable Commission to approve the variable/energy charges at Rs. 158.90 crores and energy tariff charge at Rs.1.075/kWh for the FY 2007-08
 

6.3 Other Income

The non-tariff income includes miscellaneous receipts such as penalties, rent received, interest on investments, sale of scrap etc. The non-tariff income is estimated at Rs.116.96 lakhs during the FY 2006-07 and is projected to be Rs.117.30 lakhs for the FY 2007-08.
 

6.4 Revenue Requirement & Proposed Tariff

The sum of fixed and energy costs gives the total revenue requirement of the company for the FY 2007-08.  The revenue requirement less other income will be the revenue to be raised through tariff:

Table 28: Revenue Requirement

The Petitioner has estimated a revenue requirement through tariffs of Rs.459.91 crores after adjusting for its non-tariff income and derived the following fixed and energy components of tariff:

Table 29: Proposed Tariff Increase

The Petitioner requests the Honourable Commission to approve the above modest Rs.0.975/kWh increase in its tariff.