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REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-24102024-258200
EXTRAORDINARY
PART II—Section 3—Sub-section (i)
PUBLISHED BY AUTHORITY
No. 579]
NEW DELHI, MONDAY, OCTOBER 14, 2024/ ASHVINA 22, 1946
MINISTRY OF POWER
NOTIFICATION
New Delhi, the 10th October, 2024
G.S.R. 635(E).— In pursuance of sub-section (1) and clause(z) of sub-section (2) of section 176 of the
Electricity Act, 2003 (36 of 2003)read with second proviso to sub-section (1) of section 129 of the Companies Act,
2013 (18 of 2013), the Central Government hereby makes the following rules, namely:-
1. Short title and commencement.-(1) These rules may be called the Electricity Distribution (Accounts and
Additional Disclosure) Rules, 2024.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. Applicability.-These rules shall be applicable to Specified Entity.
3. Definition-(1) In these rules, unless the context otherwise requires,-
(a) "Act" means the Electricity Act, 2003 (36 of 2003);
(b) "Additional Disclosure Statements” means the statements disclosing particulars as provided in Schedule
annexed to these rules;
(c) "Companies Act" means the Companies Act, 2013 (18 of 2013);
(d) "Financial Statement” means Financial Statements referred to in clause (40) of section 2 read with section
129 of the Companies Act;
(e) "financial year" means the financial year referred to in clause (41) of section 2 of the Companies Act;
(f) "Schedule" means the Schedule annexed to these rules;
(g) "Specified Entity" means distribution licensees excluding Government Departments, Boards and
Corporations or other agencies of the Central and State Government such as the Military Engineering
Services, Municipal Corporations, Ports, Transport Undertakings, Damodar Valley Corporation, which are
deemed licensees under section 14 of the Act.
(h) "tariff subsidy" means the subsidy provided by the State Government to any specified entity for sale of
power at subsidised rates to certain categories of consumers as defined under section 65 of the Act.
(i) “trade receivable” means an amount receivable on the account of sale of power or related services rendered
in the normal course of business.
(2) The words and expressions used herein and not defined in these rules, shall have the meanings respectively
assigned to such words and expressions in the Act or the Companies Act or the rules made there under, as
the case may be.
4. Recognition of revenue.-For claims or sums to be recoverable through tariff, such items and sums which have
been provided in the tariff orders as recoverable shall be recognised as revenue in the Financial Statements:
Provided that any sum which has not been provided in the tariff orders shall not be recognised as revenue or
income recoverable from future tariff in the Financial Statements.
Explanation.- For the purposes of these rules, it is hereby clarified that,-
(i) revenue means the items or sums appearing as revenue in the Financial Statements as provided in Additional
Disclosure Statements of the Schedule.
(ii)tariff subsidy shall be recognised and accounted for as per rules made in this regard.
5. Provisioning of trade receivables.-The minimum provisioning requirement for a Specified Entity on its trade
receivables from all category of consumers in the Financial Statements shall be as follows in the form of table
given below:
Table
+------------------------------------------------+-------------+-------------+-----------------------+
| Trade receivables outstanding for following periods | % of Provisioning |
| from due date of payment | FY 2024-25 | FY 2025-26 | FY 2026-27 and onwards|
+================================================+=============+=============+=======================+
| 0 and up to 90 days | - | - | - |
+------------------------------------------------+-------------+-------------+-----------------------+
| Exceeding 90 days and up to 180 days | 5% | 10% | 15% |
+------------------------------------------------+-------------+-------------+-----------------------+
| Exceeding 180 days and up to 1 year | 20% | 25% | 30% |
+------------------------------------------------+-------------+-------------+-----------------------+
| Exceeding 1 year and up to 2 years | 35% | 40% | 45% |
+------------------------------------------------+-------------+-------------+-----------------------+
| Exceeding 2 years and up to 3 years | 55% | 60% | 75% |
+------------------------------------------------+-------------+-------------+-----------------------+
| More than 3 years | 75% | 80% | 100% |
+------------------------------------------------+-------------+-------------+-----------------------+
| dues from permanently disconnected consumers | 75% | 75% | 75%: |
+------------------------------------------------+-------------+-------------+-----------------------+
Provided that nothing contained in this rule shall apply to:-
(i) trade receivables from Government Consumers; or
(ii) Specified Entity having trade receivable days less than or equal to ninety days on aggregate basis:
Provided further that the appropriate Commission may set a higher provisioning requirement on the
recommendations of a Committee set up by the State Government which shall consist of Principal Secretary
(Power), the Principal Secretary (Finance) and the Chairman and Managing Director of the Specified Entity as
members.
Explanation.-For the purposes of this rule, the expressions,-
(i) Government consumers means the departments, urban local bodies, rural local bodies, public sector
undertakings and the like owned or belonging to the State Government and the Central Government; and
(ii) Trade receivable days means trade receivables at the end of the financial year divided by average revenue
per day.
6. Content and form of Additional Disclosure Statements- (1) In addition to the statutory disclosures as mandated
under the Companies Act, the Specified Entity shall also prepare the Additional Disclosure Statements for each
financial year in the form and manner as provided in the Schedule.
Explanation.-For the purposes of this rule, it is hereby clarified that the Additional Disclosure Statements are
required to be prepared for the power related business of the Specified Entity.
(2) The Additional Disclosure Statements shall be part of the Financial Statements prepared by the Specified Entity
and are to be annexed to the Financial Statements as the last disclosure titled 'Additional Disclosure Statements'
under the notes to accounts of the Financial Statements:
Provided that in the first year of preparation of Additional Disclosure Statements, the Specified Entity shall have
the option to include Additional Disclosure Statements either in the annual report or in the Financial Statements.
(3) The Additional Disclosure Statements shall comprise the following statements, namely:-
(i) supplementary disclosures to Financial Statements;
(ii) power purchase and energy accounting details;
(iii) statement of Average Cost of Supply-Average Revenue Realised gap;
(iv) statement of Aggregate Technical and Commercial loss; and
(v) performance summary of Specified Entity.
Explanation.- For the removal of doubts, it is hereby clarified that for the first year of preparation of Additional
Disclosure Statements, comparative figures of previous financial year shall be optional.
7. Statement of compliance.- A statement of compliance shall be given by the management of Specified Entity at the
beginning of the Additional Disclosure Statements confirming that the Additional Disclosure Statements are
prepared and presented in the form and manner provided in the Schedule.
Schedule: Additional Disclosure Statements (ADS)
Additional Disclosure Statement 1: Supplementary disclosures to Financial Statements
1. Revenue from operations:
+-------------------------------------------------------------------------------------------------------------------------------------------------+---------------------------------------------+---------------------------------------------+
| Particulars | For the year ended | For the year ended |
| | 31st March, 20.. | 31st March, 20.. |
| | (current year) | (previous year) |
+=================================================================================================================================================+=============================================+=============================================+
| (1) | (2) | (3) |
+-------------------------------------------------------------------------------------------------------------------------------------------------+---------------------------------------------+---------------------------------------------+
| (a) Revenue from sale of energy | | |
| Sale of power to own consumers (Low Tension (LT), High Tension (HT) and Extra High Tension (EHT)) | | |
| Fuel Adjustment Charge (FAC)/ Fuel Cost Adjustment (FCA)/ Fuel and Power Purchase Cost Adjustment (FPPCA)/ Power Purchase Adjustment Charge (PPAC) | | |
| Sale to Distribution Franchisee | | |
| Sale of power to others (such as inter-State sale/ energy traded/Unscheduled Inter-change (UI)/Deviation Settlement Mechanism (DSM)/inter DISCOM sale, etc.) | | |
| Other receipts from consumers (such as meter rents, service rentals, recoveries for theft of power and malpractices, etc.) | | |
| (i) Total | | |
| Less: rebate to consumers (if any, other than cash discount) (ii) | | |
| Revenue from sale of energy without tariff subsidy (i-ii) | | |
| Add: electricity duty/ other taxes billed to consumers | | |
| Less: electricity duty/ other taxes payable to Government | | |
| Sub-total of revenue from sale of energy | | |
| (b) Other operating income | | |
| Wheeling charges | | |
| Open access charges | | |
| Others | | |
| (c) Subsidy | | |
| Subsidy payable by State Government in accordance with the Electricity (Second Amendment) Rules, 2023 as per the number of units supplied to subsidized categories according to energy accounts multiplied by the per unit subsidy | | |
| Subsidy received | | |
| Total revenue from operations (a + b + c) | | |
+-------------------------------------------------------------------------------------------------------------------------------------------------+---------------------------------------------+---------------------------------------------+
Note: Revenue to be recognised in accordance with rule 4 of these Rules.
2. Details of revenue from sale of energy:
+-------------------------------------------+-----------------------+-----------------------+-----------------------+----------------------------------+-----------------------+-----------------------+
| Particulars | For the year ended 31st March, 20.. (For Current and Previous Year) |
| +-----------------------+-----------------------+-----------------------+----------------------------------+-----------------------+-----------------------+
| | Energy sold - | Energy sold - un- | Gross energy sold |
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