Estimate of DPC Tariff and Its Components Sample Clauses

Estimate of DPC Tariff and Its Components. The DPC tariff is applicable at the door of DPC. MSEB is responsible for transmitting and distributing this power, and will bear the associated costs and losses. For the base case, this tariff in 1997 will be Rs.2.5/kWh, implying a total payment of Rs 1,240 crore ($ 387 million) in 1997. Figure 2 shows total yearly payments by MSEB to DPC for base case scenario and if the oil price (real) de creases at 2% p.a. About 5% of this payment is in Rupees and rest in Dollar terms. The contrib ution to total tariff from various components is shown in figure 1. For calculating MSEB“s effective cost for supplying DPC“s power to average consumer, we need to consider T&D cost, T&D losses, and other expenses incurred by MSEB. T&D losses of 10% is assumed. As a conservative estimate, the total downstream costs of T&D network strengthening, metering, billing etc. is considered at 60 paisa/kWh, (constant for 20 years). The elec tricity duty levied by Government of Maharashtra (GOM) is expected to be around 25 paisa/kWh in 1997 which is assumed to increase with Indian inflation. Hence, in 1997, the total cost to MSEB for supplying DPC “s power to the average consumer would be about Rs 3.57/kWh.
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