1)
 
Assignment: Assistance to Commission in (A) Assessment and Evaluation of Annual Revenue Requirement (ARR) and (B) determination of Tariff of BEST Undertaking.
 2)
Terms of Reference/ Scope of Work
 
(i)
Provide expert comments on the cost and financial feasibility of the proposal.
 
(ii)
Advice to MERC with regard to the overall viability of the proposal to proceed to the next stage of tariff determination.
 
(iii)
Attend and prepare the record of technical validation session and identify further data requirements.
 
(iv)
To develop a financial model, including impact analysis due to Sales Projection, for determination of the tariff, including a consideration of Transmission and Distribution losses, to meet the ARR
  (v)
To assist the Commission in the run-out for public hearing, including technical validation session (such as analyzing the objections/rejoinders, preparing the transcript etc.).
  (vi) To assist in finalization of the Order.
3)
 
Period of Assignment
:
4 months.
4)
 
Consultants Engaged
:
M/s. A. F. Ferguson & Co.
5)
 
Date of award
:
4.1.2005
6)
 
Selection modality :
From shortlist of 11 organizations from whom offers were invited. 4 Offers were received.
7)
Cost :
Rs.3,75,000/-(All inclusive) for part (A) Assessment and evaluation of Annual Revenue Requirements & Rs. 2,00,000/- (all inclusive) for part (B) Determination of Electricity Tariff of BEST Undertaking.