NOTE: Images, tables, and charts may not display correctly. Please see PDF document for full detail
Electricity
(Procedure for Review and
Adjustment of
Tariffs) Rules
GAZETTE EXTRAORDINARY OF THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA - 02.08.2016
The Gazette of the Democratic Socialist Republic of Sri Lanka
EXTRAORDINARY
No. 1978/21 - TUESDAY, AUGUST 02, 2016
(Published by Authority)
PART I : SECTION (I) — GENERAL
Government Notifications
L.D.B. 3/2009
SRI LANKA ELECTRICITY ACT, No. 20 OF 2009
RULES made by the Public Utilities Commission of Sri Lanka under Section 53 of the Sri Lanka Electricity Act, No. 20 of 2009, read with Section 30(3) of the aforesaid Act.
Chairman,
Public Utilities Commission of Sri Lanka. Colombo,
29th July 2016.
RULES
- These Rules may be cited as the Electricity (Procedure for Review and Adjustment of Tariffs) Rules No. 03 of2016.
- Each Licensee shall, in accordance with the-
(a) Tariff Methodology specified under Section 30(2)(a) of the Act and approved by the Commission ; and
(b) Tariff Review and Adjustment Detailed Procedure, make a tariff filing to the Commission for approval of their Allowed Revenue as well as Review and Adjustment of Tariffs.
- Each Licensee when making a tariff filing to the Commission shall provide adequate information as set out inthe information filing requirements and formats specified by the Commission in accordance with the Tariff Methodology.
- The tariff Review and Adjustment shall be carried out in accordance with the determination and approved of theCommission of-
(i) the allowed revenues which the Licensee is entitled to collect from their customers ; and
(ii) the tariff schedule for end-use customers considering the subsidies to be applied for each customer category which allows the Licensee to collect their Allowed Revenue.
under the Tariff Review and Adjustment Detailed Procedure in the Appendix.
- The Commission shall not approve tariff filing unless it is in compliance with the Tariff Methodologyrequirements set out in the Appendix.
- If the Commission does not approve the Allowed Revenue requested by a Licensee, the Commission shallnotify the reasons therefore and inform such Licensee to amend the tariff filing.
- The Licensee shall amend the tariff filing accordingly. If the tariff filing or an amended tariff filing for AllowedRevenue is not approved by the Commission, the existing tariff shall remain effective until the Commission approves the Allowed Revenue.
- If a Licenses has earned more or less than the approved Allowed Revenue as a result of the refusal to approve thetariff filing for Allowed Revenue, when an amended tariff filing for Allowed Revenue is approved by the Commission, the Commission shall notify the Licensee the extent of the revenue the Licensee has earned more or less than its approved Allowed Revenue and the manner in which the difference between the earnings and the approved Allowed Revenue may be reconciled.
- The Commission shall approve the decision on tariff containing the Tariff Schedule for end-use customers for the tariff period, with the approval of the allowed revenue.
- The Licensee shall publish the approved tariff in ast least one national newspaper in Sinhala, Tamil and Englishlanguages and post simultaneously on the Licensee’s website, ten days before of the tariff schedule for end-use customers come into effect.
- The Commission in consultation with the Treasury shall, publish annually in the Gazette, before the last working day of January the following -
(a) specific dates for scheduled Tariff Reviews and Adjustments which we consistent with the time limitsestablished by the Tariff Review and Adjustment Detailed Procedure ; and
(b) specific dates for -
(i) public consultations (including public hearings, if any)
(ii) disseminate the information to the public according to Tariff Methodology ; and
(iii) posting the information on the official Website of the Commission to be used by the consumers and other interested parties to participate in the tariff review and adjustments.
- In these rules, unless the context otherwise requires :“Act” means the Sri Lanka Electricity Act, No. 20 of 2009 ;
“Adjustment” means the process through which the components of the tariffs, as indicated in the Cost Reflective Tariff Methodology are to be adjusted during the tariff period according to the adjustment formulas (revenue control formulas) defined in the Cost Reflective Tariff Methodology. These adjustments may require the Licensees to submit information or the use of microeconomic indicators or a combination of both, as set out in the Coast Reflective Tariff Methodology.
“Allowed Revenu” menas the maximum allowed revenue calculated in terms of a Cost Reflective Tariff Methodology ;
“Commission” means the Public Utilities Commission of Sri Lanka, established by the Public Utilities Commission of Sri Lanka Act, No. 35 of 2002 ;
“Dates” unless otherwise indicated, refer to all dated correspond to the year before the Tariff Period starts (in case of tariff component reviews) or year before the adjusted tariff component applies (in case of tariff component annual adjustments) or the six-month period before the adjusted tariff component applies (in cases of biannual tariff component adjustments) ;
“Licensee” means a transmission licensee or a distribution licensee, as the case may be, whose license contains provision for transmission and bulk sale tariffs or distribution and supply tariffs as the case may be, to be subject to review and does not contain provisions specifying a procedure for reivew of such
tariff ;
“Notification” means a written communication through which Commission inform the Licensees any decision made in accordance with the powers given under the Act, the PUCSL Act and the Tariff Methodology., original letters or digitally signed emails shall be considered as valid written communication for this purpose.
“PUSCL ACT” means the Public Utilities Commission of Sri Lanka Act, No. 35 of 2002.
“Tariff Methodology” means the multiyear cost reflective tariff methodology approved by the Commission.
“Tariff Period” means each one of the five year periods established in the Cost Reflective Tariff Methodology or review tariffs. The first Tariff Period commenced from January 1st, 2011. Subsequent Tariff Periods shall start on January 1st, 2016 ; January 1st, 2012 ; etc.
“Review” means the process through which the components of the tariffs, as indicated in the Tariff Methodology are established for the first time or reset at the end of each tariff period. For this purpse the Cost Reflective Tariff Methodology establishes that the Licensee shall submit the information required in it an according to the filing mechanism established in it. The Commission shall grant the approval of the review.
“Written Request” means a written communication through which the commission request a Licensee to respond to a specific requirement in accordance with the powers given under the Act, the PUCSL Act and the Cost Reflective Tariff Methodology. Original letters (signed) or digitally signed emails shall be considered as a valid written communication for this purpose.
“Written Response” means a written communication in response to a Written Request. Original letters or digitally singned emails shall be considered as valid written communication for this purpose.
Appendix
PART I
Tariff Review and Adjustment Detalied Procedures
TARIFF REVIEW AND TARIFF ADJUSTMENT SCHEDULE
1. Electically Tariff components and subcomponents, which shall be in accordance with Tariff Methodology, shall be reviewed and adjusted as follows.
A. Reviews
- The following tariff components shall be reviewed and approved by the Commission once in every Tariff Periodnamely :
(a) Transmission Allowed Reveneu ;
(b) Bulk Supply and Operations Business Allowed Revenue ;
(c) Bulk Supply Tariff Forecast ;
(d) Distribution Allowed Revenue ; and
(e) Retail Service Tariffs including the loss factor adjustmentfor the relevant Tariff Period.
B. Adjustments.
- The following tariff components shall be adjusted and approved by the Commission during the tariff period,according to the revenue control formulas contained in the Tariff Methodology :
(a) Transmission Allowed Revenue Annual Adjustments ;
(b) Allowed Revenues for Bulk Supply and Operation Business Annual Adjustment ;
(c) Bulk Supply Tariff Forecast Adjustment Seminannual Adjustment ;
(d) Distribution Allowed Revenue Annual Adjustment ; and
(e) Retail Service Tariff Annual Adjustment including the Loss Factor Adjustment.
C. Extraordinary Review.
- A Transmission Licensee may when-
(a) the accumulated change in the indexation formula during any year surpasses 15% ; or
(b) an unexpected and significant Bulk Suppy Tariff Forecast deviation occurs ; or
(c) costs incurred due in an unexpected significant event during any year surpasses 25% of the Allowed Revenueof the year.
Submit to the Commission for the approval of Extraordinary Allowed Revenue Reviews.
- A Distribution Licensee may when-
(a) the accumulated change in the indexation formula during any year surpasses 15% ; or
(b) the costs incurred due to an unexpected significant event during any year surpasses 25% of the AllowedRevenue of the year.
submit to the Commission for its approval of Extraordinary Allowed Revenue Reviews.
PART II Subsidies
D. External Subsidies for Selected Consumer Categories.
- Before the commencement of any Tariff Period, the Commission shall present to the Treasury a SubsideProjections Report, indicating the estimated volume of subsidies required for the Tariff Period to implement the government policies and facilitate all the elements for Treasury for approval. This study shall cover the requirements for the year of the Tariff Period, and a projection for the requirements for the subsequent years of the first Tariff Period. During year of the Tariff Period, the Commission shall update the volume of subsidies required for the following year and seek the approval of the Treasury for the subsidy volumes for the next year.
- (a) On or before the last working day of April the Licensee shall submit to the Commission the following (usingthe templates approved by the Commission)
(a) Statement of Bulk Supply Transaction Account (BSTA) ;
(b) Distribution Licensee - the Sale and Demand Forecasts ;
(c) Distribution Licensee - Distribution plans and CAPEX programs ;
(d) Transmission Licensee - the Transmission Plan and the CAPEX Plan ;
(e) Generation Licensee - the Generation Repowering Plan ;
(f) Transmission Licensee - Bulk Supply Tariff Forecast for the following three six months periods (untilthe end of the first year of the tariff period) and Bulk Supply Tariffs Projections for the rest of the six month periods until the end of the Tariff Period ;
(g) All Licensees-audited accounts for the previous year. In the event the Licensee doesn’t have the auditedversion of the accounts, at least the unaudited version.
(b) The Commission may issue a detailed schedule for making each of the above documents.
- On or before the last working day of May of each year the Commission shall prepared the Draft Tariff Estimatesusing the Tariff Methodology and post the Draft Estimated Tariffs in its Website.
- The Commission shall, on or before the 15th of June of each year submit to the Treasury the Report on SubsidyVolume Projections for the ensuing year.
- Immediately after the submission of the Report on Subsidy Volume Projections to the Treasury, the Commission shall made a request to the Treasury for its approval and for the inclusion of same in the preparation of the National Budget.
- On or before the last working day of July of each year the Commission shall provide any additional informationor clarifications requested by the Treasury, enabling it to grant approval for such subsidy volumes in order to provide allocations for such in the National Budget.
PART III
Tariff Review Process for the Tariff Period E. Purposive General Aspects.
- On or before the last working day of January of the last year of each Tariff Period, the Commission shallannounce and inform all licensees the calendar for all reviews and Adjustments corresponding to the Tariff Period starting from January 1st. The Calendar shall be posted on the Commission’s website.
- Together with the calender, the Commission shall inform the licensee the following :-
(a) various parameters that are established in the Tariff Methodology and required to be defined by theCommission prior to the commencement of the Tariff Period ;
(b) the updates, if any, about the templates approved by the Commissioner to be used for information submission,filing, etc.
(c) about any information that is pending to be submitted by each licensee.
- Every Licensee shall submit the information required, using the templates approved by the Commission. Forthe cases so disposed by the Commission, those template shall be submitted electronically using the LISS or any other IT process setup for the purpose by the Commission.
- The Commission shall provide necessary training and support to fulfill these requirements to the Licensee.
- If a Licensee fails to abide by the requirements of the Tariff Methodology or any other information requestedby the Commission, the Commission -
(a) shall demand the information to be submitted within an extended period of time, if such extension isfeasible ;
(b) once the given time has expired and the Licensee has not properly responded to the Commissioner’srequest, shall conduct its own research to obtain the information not submitted by the Licensee ;
(c) may initiate litigation before a magistrate against the Licensee ; and
(d) may charge the costs incurred with regard to the investigation conducted to obtain the information that wasnot submitted by the Licensee.
F. Review of the Transmission Allowed Revenue and Bulk Supply and Operation Business Allowed Revenues.
- Pursuant to the Tariff Review and Adjustment Detailed Procedures, the Transmission Licensee shall submit tothe Commission for its approval, the Transmission Allowed Revenue and Bulk Supply and Operations Business Allowed Revenues for the following Tariff Period, according to the relevant Revenue Review procedure and shall be submitted on or before the first working day of August.
- (1) Between the Submission day and the first working day of October, the Commission shall-
(a) within 24 hours of receiving the submission for approval, post it on the Commission’s website ; and
(b) make a written request to the Licensee and post on the Commission’s website any clarification,amendment, addition, etc. the Commission may require.
(2) The Transmission License shall reply in writing to the Commission within five working days from the date
of reveiving such request.
- The Commission shall, before the first working days of October, approve the draft decision on TransmissionAllowed Revene and Bulk Supply and Operation Business Allowed Revenue and within 24 hours of the approval.
(a) post the draft decision on the Commission’s website ; and
(b) notify all Licensees and the public that within a period of twenty working days, the Commission willreceive comments, observations, etc., regarding the draft decision.
- The Commission shall before the 15th of November, approve the decisioin on Transmission Allowed Revenueand Bulk Supply and Operations Business Allowed Revenues and within five working days after the approval, shall -
(a) notify the Transmission Licensee ; and
(b) post the decision in the Commission’s website ;
G. Bulk Supply Tariff Forecast for the Tariff Period.
- In accordance with the Tariff Review and Adjustment Detailed Procedures, the Transmission Licensee shallsubmit the Bulk Supply Tariff Forecasts for each six-month period starting from April 1st and October 1st of each year of the Tariff Period on or before the first working day of November to the Commission for its approval.
- The Bulk Supply Tariff Forecast for the first six-month period of the Tariff Period shall be submitted withdetails and Bulk Supply Tariff Forecast forthe remaining six-month periods of the Tariff Period shall be submitted as projected forecasts.
- The submission shall include the compensation of the differences between the forecast and actual BulkSupply Tariffs as reflected in the Bulk Supply Transactions Account, which shall be applied during the first six-month period, according to the Tariff Methodology prescriptions.
24.(1) Between the submission day and the first working day of January, the Commission shall:-
(a) within 24 hours of the receipt of the Bulk Supply Tariff Forecast for approval, post it on theCommission’s website; and
(b) make a written request to the Licensee and post on the Commission’s website any clarification,amendment, addition, etc. that the Commission may require.
(2) The Transmission Licensee shall reply in writing to the Commission within five working days from the
date of receiving such request.
- The Commission shall before the first working day of January of the same year, prepare a Draft Decision on
Bulk Supply Tariff Forecast for the first six-month period of the Tariff Period, and within 24 hours of the approval:-
(a) post the Draft Decision on the Commission’s website;
(b) notify all Licensees and the Public that within a period of 10 working days, the Commission shall receivecomments, observations, etc, regarding the draft decision.
- The Commission shall before the 15th of Februaryof the relevant period shall approve the Decision on BulkSupply Tariff Forecast for the first six-month period of the Tariff Period, and -
(a) notify all Licensees of the approval of the Bulk Supply Tariff Forecast for the first six-month period ofthe Tariff Period and the compensation of accumulated deviations in the Bulk Supply Transactions Account for the first six-month period of the Tariff Period; and
(b) post the approved decision on Bulk Supply Tariff Forecast for the first six-month period of the TariffPeriod and the Compensation of accumulated deviations in the Bulk Supply Transactions Account for the first six-month period of the Tariff Period on the Commission’s website.
H. Adjusted Forecasted Bulk Supply Tariff (ABST)
- Adjusted Forecasted Bulk Supply Tariff (ABST) is required to implement the Uniform National Tariff accordingto the Tariff Methodology.
- (a) Before the 15th of March, the Commission shall approve the Decision on the Adjusted Forecasted Bulk Supply Tariffs for each Distribution Licensee which the Bulk Supplier shall invoice each one of them during the sixmonth period starting on the following April 1st.
(b) The Commission shall –
(i) within five working days after the approval, notify the Transmission Licensee and the DistributionLicensee of the approval; and
(ii) post the approved decision on the Commission’s website.
I. Distribution Allowed Revenue and Retail Service Tariffs Review
29. According to Tariff Review and Adjustment Detailed Procedure, each Distribution Licensee shall submit for the Commission’s approval, the Distribution Allowed Revenue and Retail Service Tariff Review before the first working day of August of the year prior to the Tariff Period’s commencement.
30.(1) Between the submission day and the first working day of October, the Commission shall:-
(a) within 24 hours of receiving the submission for approval, post it on the Commission’s website; and
(b) make a written request to the Licensee and post on the Commission’s website any clarification,amendment, addition, etc. that the Commission may require.
(2) The Distribution Licensee shall reply in writing to the Commission within five working days from date of
receiving such request.
31.The Commission shall before the first working day of October, approve the draft decision on Distribution Allowed Revenue and Retail Service Tariffs of each Distribution Licensee, and within 24 hours of the approval,
(a) post the Draft Decision of each Distribution Licensee on the Commission’swebsite; and
(b) notify all Licensees and the Public that within a period of twenty working days the Commission willreceive comments, observations, etc. regarding the draft decision of each Distribution Licensee.
32.The Commission shall before the 15th of November, approve the decision on Distribution Allowed Revenue and Retail Service Tariffs of each Distribution Licensee, and within five working days of its approval,
(a) notify the Distribution Licensee; and
(b) post the decision on the Commission’s website.
J. Tariff Schedule for End-use Customers for the Tariff Period
- The Tariff Schedule for End-Use Customers shall be prepared by;
(a) the respective Licensee and shall be submitted to the Commission before the first working day ofNovember; or
(b) the Commission, before the first working day of January.
- On or before the first working day of January the Commission shall publish the Consultation Paper on TariffSchedule for End-Use Customers that shall be applied during the five year Period starting from the following April 1st, which will be subject to the Adjustments prescribed by the Tariff Methodology.
- Together with the Published Consultation Paper on Distribution and Supply Tariffs for End-Use Customers,the Commission shall:-
(a) announce the date for the Public Consultation and Supply Tariffs for End-Use Costumers for the nextTariff Period;
(b) notify all Licensees of the issuance of the Consultation Paper on Distribution and Supply Tariffs for EndUse Costumers and the public consultation announcement;
(c) post the Consultation Paper on Distribution and Supply Tariffs for End-Customers on the its website; and
(d) inform the public about the Consultation Paper on Distribution and Supply Tariffs for End Customers andthe Public Consultation Procedures and the Public Consultation announcement.
K. Public Consultation for Reviewing End-Use Customers Tariffs
- The Public Consultationshall be held according to the Procedure adopted by the Commission.
- The Public Consultation shall be held before the 20th of January.
- Before the 15th of March the Commission shall approve the Decision on Tariff for the five year Period
L. End-Use Customer’s Decisions on Tariffs for the Tariff Period
starting on April 1st of the following year.
- Within five working days after the Decision on Tariff, the Commission shall:-
(i) notify all Licensees of the Decision on Tariff; (ii) post the Decision on the Commission’s website; and
(iii) publish the Decision on the Tariff for public information.
PART IV
Tariff Adjustment during the Tariff Period
- Each year during the Tariff Period, the Tariff Schedule for End-Use Customers shall be adjusted twice,during the six-month period starting from April 1st and during the six-month period starting from October 1st, based on the adjustments due during the year of the following Tariff components:-
(a) One-year period starting from January 1st –
(i) Transmission Allowed Revenue and Bulk Supply and Operation Business Allowed RevenueAdjustments;
(ii) Distribution Allowed Revenue and Retail Service Tariff Adjustments;
(b) six-month period starting from April 1st–(i) Bulk Supply Tariff Forecast Adjustment;
(ii) ABST Forecast;
(c) six-month period starting from October 1st -
(i) Subsidies Adjustments;
(ii) Bulk Supply Tariff Forecast Adjustments; and
(iii) ABST Forecast.
- For the periods where Uniform National Tariff (UNT) is implemented, for each three-month period, Ex-postCompensation will be calculated according to the Tariff Methodology and be paid to the Distribution and Supply Licensees.
- Before the last working day of January of each year of the Tariff Period the Commission shall announce andinform all Licensees the Calendar for all Reviews and Adjustments due on the year and the Calendar shall be posted in the Commission’s website.
Tariff Adjustments during the six-month period starting from April 1st
M. Bulk Supply Tariff Forecast Adjustments
- According to Tariff Review Detailed Procedure, the Transmission Licensee shall submit for the Commissionfor approval of the Bulk Supply Tariff Forecast Adjustments.
- The Bulk Supply Tariff Forecast Adjustments for the six-month period starting from October 1st of each
year of the Tariff Period shall be submitted before the first working day of May of the respective year of the Tariff Period. 45. The submission shall include:-
(a) the Generation Costs Forecast Adjustment for the following two six-months periods of the Tariff Period;and
(b) the Compensation of the differences between the forecast and actual Bulk Supply Tariff as reflected inthe Bulk Supply Transactions Account, which shall be applied during the following six-month period, according to the Tariff Methodology prescriptions.
- Between the submission day and the last working day of May, the Commission shall:-
(a) within 24 hours of receiving of the submission for approval, post it on the Commission’swebsite;
(b) make a written request to the Licensee and post on the Commission’s website any clarification, amendment,addition, etc. that the Commission may require; and
(c) request the Transmission Licensee to reply in writing within five working days from date of receipt ofsuch request.
- The Commission shall before the last working day of May, approve the draft decision on Bulk Supply Tariff
Forecast Adjustments for the following six-month period of the Tariff Period and within 24 hours of the approval,
(a) post the draft decision on the Commission’s website; and
(b) notify all Licensees and the public that within ten working days, the Commission will receive comments,observations, etc. regarding the draft decision.
- Before the 15th of July,the Commission shall approve the draft decision on Bulk Supply Tariff ForecastAdjustments for the following six-month period of the Tariff Period starting on October 1st, and within five working days of the approval, the Commission shall:-
(a) notify all Licensees of the approval of the Decision on Bulk Supply Tariff Forecast Adjustments for thefollowing six-month period of the Tariff Period and the Compensation of accumulated deviations in the Bulk Supply Transactions Account for the following six-month period of the Tariff Period; and
(b) post the decision on Bulk Supply Tariff Forecast Adjustments for the following six-month period of theTariff Period and the Compensation of accumulated deviations in the Bulk Supply Transactions Account for the following six-month period of the Tariff Period on the Commission’s website.
N. Adjustments for the Tariff Schedule for End-Use Customers for the Second Six-month Period during the Tariff Period
- Adjustment to the Tariff Schedule for End-Use Customers shall be prepared by:-
(a) the respective Licensee and submitted to the Commission before the first working day of May; or
(b) the Commission before the 15th of September.
- Before the 15th of September the Commission shall approve the Decision on Tariff Adjustment for thefollowing six-month period, starting on the following October 1st.
- Within two working days after approval of the Decision on Tariff Adjustment for following six-month period,the Commission shall:-
(a) notify the all Licensees the approval of the Decision on Tariff Adjustment;
(b) post the Decision on Tariff Adjustment on the its website; and
(c) publish for the public information the Decision on Tariff Adjustment.
O. Adjusted Forecasted Bulk Supply Tariff (ABST)
- Adjusted Forecasted Bulk Supply Tariff (ABST) is required to implement the Uniform National Tariff accordingto the Tariff Methodology.
- Before the 15th of September the Commission shall approve the Decision on the Adjusted Forecasted BulkSupply Tariffs for each Distribution Licensee which Bulk Supplier use to invoice each one of them during the six-month period starting on the following October 1st, and within five working days after approval, the Commission shall: (a) notify the Transmission Licensee and the Distribution Licensee of the approval; and
(b) post the decision on the Commission’s website.
Tariff Adjustments during the six-month period starting from October 1st
P. Adjustments for Subsides
- Before first working day of June the Commission must prepare a Report on Subsidy Volumes ProjectionsAdjustment, which is an update of the Subsidy Volumes Projections Report submitted during the Tariff Review, containing the projected subsidies volume required from the Treasury for the following year and a projection for the subsequent year. This report must be based on the following:-
(a) the Bulk Supply Tariff forecast for the year submitted by the Transaction Licensee (this is not foreseen inthe Methodology);
(b) potential income from transmission and distribution claw-back provision;
(c) adjusted revenue for Distribution Licensees and Transmission Licensees based on the revenue controlformulas stated in the Tariffs Methodology;
(d) the resulting forecasted tariffs applying this principle;
(e) adjusted market forecast for the coming year (demand and number of customers based on Licensee’ssubmissions); and
(f) allowed loss approved for the year.
- The Commission shall post the Draft Estimated Tariff in its website.
- Before the first working day of June, the Commission shall submit the Report on Subsidy Volumes ProjectionsAdjustment to the Treasury.
- Immediately after informing Treasury about the subsidies volumes requirements for the Tariff Period, theCommission shall make a request to the Treasury to include the Subsidies in the National Budget preparation.
- The Commission shall promptly provide any additional information or clarifications requested by the Treasury,for the subsidies volumes approval before the first working day of July.
Q. Transmission Allowed Revenue and Bulk Supply and Operations Business Allowed Revenue Adjustments
59. According to Tariff Review and Adjustment Detailed Procedures, the Transmission Licensee shall submit the Transmission Allowed Revenue and Bulk Supply and Operations Business Allowed Revenues Adjustments for the approval of the Commission:-
(a) theTransmission Allowed Revenue and Bulk Supply and Operations Business Allowed Revenues Adjustmentshall be submitted before the last working day of July of the 1st, 2nd, 3rd and 4th years of the Tariff Period;
(b) between the submission day and the first working day of August, the Commission shall-
(i) within 24 hours of receiving the submission for approval, post it on the Commission’s website.
(ii) make a written request to the Licensee and post on the Commission’s website any clarification, amendment, addition, etc. the Commission may require; and
(iii) the Transmission Licensee shall reply in writing to the Commission within five working days from date of receipt of a request.
(c) Before the last working day of August, the Commission shall approve the Draft Allowed Revenues andwithin 24 hours of the approval, the Commission shall:(i) post the draft decision on the Commission’s website; and
(ii) notify all Licensees and the public that the Commission shall within a period of twenty working days, receive comments, observations, etc. about the draft decision.
(d) Before the 15th of October, the Commission shall approve the decision on Transmission Allowed Revenuesand Bulk Supply and Operations Business Allowed Revenues and within five working days after the decision’s approval:-
(i) notify the Transmission Licensee of the approval; and
(ii) post the decision on the Commission’s website.
R. Distribution Allowed Revenue and Retail Service Tariff Adjustments
60. According to Tariff Review and Adjustment Detailed Procedures, the Distribution Licensee shall submit for the Commission’s approval the Distribution Allowed Revenue and the Retail Service Tariff including the Loss Factor Adjustment on the following:-
(a) Distribution Allowed Revenue and the Retail Service Tariff Adjustment shall be submitted for theCommission’s approval according to the Revenue Control Formulas contained in the Tariff Methodology, before the last working day of July of the 1st, 2nd, 3rd and 4th years of the Tariff Period;
(b) between the submission day and the last working day of August, the Commission shall :-
(i) within 24 hours of receiving the submission for approval, post it on the Commission’s website; and
(ii) make a written request to the Licensee and post on the Commission’s website any clarification, amendment, addition, etc. that the Commission may require.
(c) the Distribution Licensee shall reply to the Commission in writing within five working days from date ofreceiving such request;
(d) the Commission shall before the last working day of August, approve the draft decision on the Distribution
Allowed Revenue and the Retail Service Tariffs Adjustments and within 24 hours of the approval:-
(i) post the draft decision on the Commission’s website; and
(ii) notify all Licensees and the Public that within a period of twenty working days the Commission shall receive comments, observations, etc. regarding the draft decision.
(e) the Commission shall before the 15th of October, approve the decision on Distribution Allowed Revenueand the Retail Service Tariff Adjustments and within five working days after the approval:-
(i) notify the Transmission Licensee of the approval; and
(ii) post the decision on the Commission’s website.
S. Bulk Supply Tariff Forecast Adjustments
61. According to Tariff Review and Adjustment Detailed Procedures, the Transmission Licensee shall submit for the Commission’s approval the Bulk Supply Tariff Forecast Adjustments on followings:-
(a) the Bulk Supply Tariff Forecast Adjustments for the six-month period starting from April 1st of the 2nd,3rd, 4th and 5th years of the Tariff Period shall be submitted before the last working day of Octoberof the year prior to the respective year of the Tariff Period;
(b) each submission shall include:-
(i) the Generation Costs Forecast Adjustment for the following two six-month periods of the TariffPeriod; and
(ii) the Compensation of the differences between the forecast and actual Bulk Supply Tariffs as reflected in the Bulk Supply Transactions Account, which shall be applied during the following six-month period, according to the Tariff Methodology prescriptions.
(c) between the submission day and the last working day of November, the Commission shall :-
(i) within 24 hours of receiving the submission for approval, post it on the Commission’s website; and
(ii) make a written request to the Licensee and post on the Commission’s website any clarification, amendment, addition, etc. that the Commission may require.
(d) The Transmission Licensee shall reply in writing within to the Commission five working days from dateof receiving of such request.
(e) the Commission shall before the last working day of November,approve the draft decision on Bulk SupplyTariff Forecast Adjustments for the following six-month period of the tariff period, and within 24 hours of the approval,
(i) post the draft decision on the Commission’s website; and
(ii) notify all Licensees and the public within a period of ten working days, the Commission will receive comments, observations, etc. regarding the draft decision.
(f) before the 15th of January the Commission shall approve the decision on Bulk Supply Tariff ForecastAdjustments for the six-month period of the Tariff Period starting on April 1st and within five working days after the approval,
(i) notify all Licensees of the approval of the decision on Bulk Supply Tariff Forecast Adjustments forthe six-month period of the Tariff Period and the Compensation of accumulated deviations in the Bulk Supply Transactions Account for the first six-month period of the Tariff Period; and
(ii) post the approved decision on Bulk Supply Tariff Forecast Adjustments for the six-month period of the Tariff Period and the Compensation of accumulated deviations in the Bulk Supply Transactions Account for the first six-month period of the Tariff Period on the Commission’s website.
T. Adjustments for the Tariff Schedule for End-Use Customers during the first six-month periods during the Tariff Period
- Adjustment to the Tariff Schedule for end-use customers shall be prepared by:-
(a) the respective Licensee and submitted to the Commission before the last working day of October eachyear; or
(b) the Commission, before the 15th of March of each year.
- Before the 15th of March of each year, the Commission shall approve the decision on Tariff Adjustment forthe six-month period, starting from April 1st.
- Within two working days after the approval of the Tariff Adjustment for the six-month period, the Commission
shall:-
(a) notify the Licensee of the approval of the Tariff Adjustment;
(b) post the approved Tariff Adjustment on the Commission’s website; and
(c) publish the decision on Tariff Adjustment.
U. Adjusted Forecasted Bulk Supply Tariff (ABST)
- Adjust Forecast Bulk Supply Tariff (ABST) required to implement the Uniform National Tariff according tothe Tariff Methodology.
- The Commission shall before the 15th of March, approve the decision on the Adjusted Forecasted BulkSupply Tariff for each Distribution Licensee which the Bulk Supplier use to invoice each one of them during the sixmonth period starting on the April 1st and within five working days after approval:-
(a) notify the Transmission Licensee and the Distribution Licensees of the approval; and
(b) post the approved decision on the Commission’s website.
V. Ex-post Calculation of Compensation due for the implementation of Uniform National Tariff (UNT)
- Before the last working day of January, April, July and October, each Distribution and Supply Licenseesshall submit the information required for Ex-post Calculation of Compensation to be paid to the Distribution and Supply Licensee in accordance with the Compensation formula identified in the Tariff Methodology.
- Before the 1stday of April, July, October and January, the Commission shall approve the decision on thecompensation and within five working days after the approval,
(i) notify the Transmission Licensees and the Distribution Licensees of the approval; and
(ii) the Transmission Licensee shall credit/ debit the amount of the compensation to each Distribution and Supply Licensee, in the next invoicing immediately after the Commission’s approval.
W. Review under extraordinary conditions
- According to the Tariff Methodology, when an extraordinary eventoccur, the Transmission Licensees and the
Distribution Licensees may submit for Commission’s approval of Extraordinary Allowed Revenue Review:-
(a) the accumulated change in the Allowed Revenue indexation formula during any year surpasses 15% -
(i) if the 15% is surpassed before or by 30th June of such year the adjustments shall be made effectiveas early as possible;
(ii) if the 15% is surpassed after the 30th of June, the adjustment shall be effective from the next yearof the Tariff Period;
(b) an unexpected and signification Bulk Supply forecast deviation occurs; and
(c) costs incurred by the Licensee due to an unexpected event during any year surpasses 25% of the allowedrevenue in the year.
- The submission may be made any time during the year, and the Commission shall determine whether thereview will be treated as extraordinary or be deferred until the following scheduled review or adjustment process according to the calendar.
- The submission shall include all elements of the reasons for the request, accompanied by all materials whichshould facilitate the unexpected event which justify the extraordinary review.
- Within 24 hours of receiving the submission for approval, the Commission shall post it on its website.
- Within ten working days of receiving the submission, the Commission may request the Licensee through awritten request to provide any clarification, amendment, addition etc. that the Commission may require about the extraordinary review.
- The Licensee shall reply the Commission’s written requests within five working days from date of receivinga request from the Commission.
- Within twenty working days after the submission, the Commission shall decide whether to accept or to reject the request.
- In the event of rejecting the request, the Commission shall justify the reasons for the rejection and withinone working day the decision shall be posted in the website.
- In the event of accepting the request, the Commission shall approve the draft decision on Extraordinary
Review including the justification for that decision and within 24 hours after approval, the Commission shall:-
(a) post the draft decision on the Commission’s website; and
(b) notify all Licensees and inform the Public that the Commission will, within a period of twenty workingdays, receive comments, observations, etc. about the draft decision.
- Within five working days, after the consultation period is over, the Commission shall, approve the decisionon the Extraordinary Review and –
(i) notify the Transmission Licensee of the approval; and (ii) post the decision onthe Commission’s website.
08-453
PRINTED AT THE DEPARTMENT OF GOVERNMENT PRINTING, SRI LANKA.