Post on 17-Jul-2018
KARNATAKA ELECTRICITY REGULATORY COMMISSION
TARIFF ORDER 2017
OF
CESC
ANNUAL PERFORMANCE REVIEW FOR FY16
&
REVISION OF ANNUAL REVENUE REQUIREMENT FOR
FY18
&
REVISION OF RETAIL SUPPLY
TARIFF FOR FY 18
11th April 2017
6th and 7th Floor, Mahalaxmi Chambers
9/2, M.G. Road, Bengaluru-560 001
Phone: 080-25320213 / 25320214
Fax : 080-25320338
Website: www.karnataka.gov.in/kerc - E-mail: kerc-ka@nic.in
ii
C O N T E N T S
CHAPTER
Page No.
1.0 Introduction 3
1.1 The CESC at a glance 5
1.2 Number of Consumers, Sales in MU to various
categories of consumers and details of Revenue
for FY16
5
2 Summary of Filing and Tariff Determination
Process
7
2.0 Background for current filing 7
2.1 Preliminary Observations of the Commission 7
2.2 Public Hearing Process 8
2.3 Consultation with the Advisory Committee of the
Commission
8
3.0 Public consultation – Suggestions / Objections
and Replies
9
3.1 List of persons who filed written objections 9
3.2 List of persons, who made oral submissions
during the Public Hearing held on 22.02.2017
10
3.3 The gist of the objections, replies by CESC and
the Commission’s views is appended to this
order as Appendix-1
10
4 Annual Performance Review for FY16 11
4.0 CESC’s Application for APR for FY16 11
4.1 CESC’s Submission 11
4.2 CESC’s Financial Performance as per Audited
Accounts for FY16
13
4.2.1 Sales for FY16 14
4.2.2 Distribution Losses for FY16 23
4.2.3 Power Purchase for FY16 24
4.2.4 RPO Compliance by CESC for FY16 28
4.2.5 Operation and Maintenance Expenses 30
4.2.6 Depreciation 34
4.2.7 Capital Expenditure for FY16 35
4.2.8 Interest and Finance Charges 46
4.2.9 Interest on Working Capital 47
4.2.10 Interest on Consumer Deposit 48
4.2.11 Other Interest and Finance Charges 49
4.2.12 Interest on belated payment of power purchase
cost
49
4.2.13 Capitalisation of Interest and finance charges 49
4.2.14 Other Debits 50
4.2.15 Net Prior Period Charges 50
4.2.16 Return on Equity 51
4.2.17 Income Tax 52
4.2.18 Other Income 52
4.2.19 Fund towards Consumer Relations / Consumer 53
iii
Education
4.2.20 Carrying cost on Regulatory Assets 53
4.2.21 Revenue for FY16 54
4.2.22 Revenue and Subsidy for FY16 54
4.3 Abstract of Approved ARR for FY16 54
4.3.1 Gap in Revenue for FY16 56
5.0 Revised Annual Revenue Requirement (ARR) for
FY18
57
5.1 Annual Performance Review for FY16 58
5.2 Revised Annual Revenue Requirement for FY18 58
5.2.1 Capital Investments for FY18 58
5.2.2 Sales forecast for FY18 63
5.2.3 Distribution Losses for FY18 73
5.2.4 Power Purchase for FY18 75
5.2.5 RPO Target for FY18 78
5.2.6 O & M Expenses for FY18 81
5.2.7 Depreciation 84
5.2.8 Interest on Capital Loans 86
5.2.9 Interest on Working Capital 87
5.2.10 Interest on Consumer Security Deposit 88
5.2.11 Other Interest and finance charges 89
5.2.12 Interest and other charges capitalised 90
5.2.13 Other Debits & Prior Period Charges 90
5.2.14 Return on Equity 90
5.2.15 Other Income 92
5.2.16 Fund towards Consumer Relations / Consumer
Education
92
5.2.17 Contribution towards Pension and Gratuity Trust 93
5.3 Abstract of ARR for FY18 94
5.4 Segregation of ARR into ARR for Distribution
Business and ARR for Retail Supply Business
95
5.5 Gap in Revenue for FY18 97
6 Determination of Retail supply Tariff for FY18 99
6.0 CESC’s Proposal and Commission’s Decision for
FY18
99
6.1 Tariff Application 99
6.2 Statutory Provisions Guiding Determination of
Tariff
99
6.3 Factors considered for Tariff Setting 100
6.4 New Tariff Proposals by CESC 101
6.5 Revenue at Existing Tariff and Deficit for FY18 107
6.6 Wheeling and Banking charges 136
6.6.1 Wheeling within CESC area 137
6.6.2 Wheeling of Energy using Transmission Network
or network of more than one licensee
139
6.6.3 Charges for Wheeling of Energy by RE sources
(non REC route) to consumer in the State
140
6.6.4 Charges for Wheeling Energy by RE sources
wheeling energy from the State to a consumer /
others outside the State and for those opting for
140
iv
renewable energy certificate (REC)
6.6.5 Banking charges and Additional surcharge 140
6.7 Cross Subsidy Surcharge (CSS) for FY18 140
6.8 Other issues 143
6.8.1 Tariff for Green power 143
6.9 Other Tariff related issues 143
6.10 Cross subsidy levels for FY18 146
6.11 Effect of Revised Tariff: 146
6.12 Summary of Tariff Order 147
6.13 Commission’s Order 149
Appendix 150
Appendix - I 196
v
LIST OF TABLES
Table
No.
Content Page
No.
4.1 APR for FY16 – CESC’s Submission 12
4.2 Financial Performance of CESC for FY16 13
4.3 CESC’s Accumulated Profits / Losses 14
4.4 Approved and actual Sales for FY16 15
4.5 Format for submission of details of IP Set Installations 17
4.6 Approved and actual Sales for FY16 22
4.7 Penalty for exceeding targeted loss levels in FY16 24
4.8 Source wise power purchase during FY16 25
4.9 Difference between source-wise approved and
Actual energy Purchase
26
4.10 RPO Compliance for FY16 28
4.11 Non- Solar RPO Compliance 29
4.12 Solar RPO Compliance 30
4.13 O & M Expenses –CESC’s submission 31
4.14 Approved O & M Expenses as per the Tariff Order
02.03.2015
31
4.15 Inflation to be allowed for FY16 32
4.16 Normative O&M Expenses for FY16 33
4.17 Allowable O&M Expenses for FY16 33
4.18 Depreciation for FY16 – CESC’s Submission 34
4.19 Category wise Capital Expenditure of CESC for FY16 35
4.20 Division wise summary of sample selection 39
4.21 Category wise summary of sample selection 40
4.22 Summary of prudence check results for CESC in FY16 42
4.23 Gist of prudence check findings for FY16 42
4.24 Summary of works having cost overrun 43
4.25 Summary of works having time overrun 43
4.26 Details of amounts disallowed in APR FY16 44
4.27 Allowable Interest on capital Loans – FY16 46
4.28 Allowable Interest on Working Capital for FY16 48
4.29 Allowable Interest and Finance Charges 49
4.30 Allowable other Debits 50
4.31 Status of Debt Equity Ratio for FY16 51
4.32 Allowable Return on Equity 52
4.33 Approved Revised ARR for FY16 as per APR 55
5.1 Revised ARR for FY18 – CESC’s submission 57
5.2 Capital expenditure for FY18 – CESC’s Submission 60
5.3 Additional capex sought by CESC 61
5.4 Approved & Actual capital investment 62
5.5 Computation of IP Set consumption 70
5.6 Approved sales for FY18 73
5.7 Approved and actual Distribution Losses for FY11-16 74
5.8 Approved Distribution Losses for FY18 75
vi
5.9 Power Purchase Cost as filed by CESC for FY18 75
5.10 Approved Power Purchase quantum and cost for the
State
77
5.11 Approved Power Purchase cost for CESC for FY18 78
5.12 Estimated solar RPO for FY18 79
5.13 Anticipated capacity addition from RE sources 79
5.14 Anticipated solar capacity and energy during FY17
and FY18.
80
5.15 O & M Expenses for FY18 – CESC’s submission 82
5.16 Approved O & M Expenses for FY18 as per the Tariff
Order dated 30th March, 2016
82
5.17 Approved O & M Expenses for FY18 84
5.18 Depreciation – FY18 – CESC’s submission 84
5.19 Approved Depreciation for FY18 85
5.20 Interest on Capital Loans – CESC’s submission 86
5.21 Approved Interest on Loans for FY18 87
5.22 Approved Interest on Working Capital for FY18 88
5.23 Approved Interest on Consumer Security Deposits for
FY18
89
5.24 Approved Interest and Finance Charges for FY18 90
5.25 Status of Debt Equity Ratio for FY18 91
5.26 Approved Return on Equity for FY18 92
5.27 Approved Revised ARR for FY18 95
5.28 Segregation of ARR – FY18 – CESC’s submission 96
5.29 Approved basis for Segregation of ARR – FY18 96
5.30 Approved Revised ARR for Distribution Business – FY18 97
5.31 Approved ARR for Retail Supply Business FY18 97
5.32 Revenue Gap for FY18 98
6.1 Revenue Deficit for FY18 107
6.2 Wheeling Charges 138
vii
LIST OF ANNEXURES
SL.NO. DETAILS OF ANNEXURES Page
No.
I Total Approved Power Purchase Quantum and Cost
of all ESCOMs for FY18
210
II Approved Power Purchase quantum and cost of
CESC for FY18
213
III Proposed and approved Revenue for FY18 216
IV Electricity Tariff – 2018 217
viii
ABBREVIATIONS
AAD Advance Against Depreciation
AEH All Electric Home
ABT Availability Based Tariff
A & G Administrative & General Expenses
ARR Annual Revenue Requirement
ATE Appellate Tribunal for Electricity
BST Bulk Supply Tariff
CAPEX Capital Expenditure
CCS Consumer Care Society
CERC Central Electricity Regulatory Commission
CEA Central Electricity Authority
CESC Chamundeshwari Electricity Supply Corporation
CPI Consumer Price Index
CWIP Capital Work in Progress
DA Dearness Allowance
DCB Demand Collection & Balance
DPR Detailed Project Report
EA Electricity Act
EC Energy Charges
ERC Expected Revenue From Charges
ESAAR Electricity Supply Annual Accounting Rules
ESCOMs Electricity Supply Companies
FA Financial Adviser
FKCCI Federation of Karnataka Chamber of Commerce & Industry
FR Feasibility Report
FoR Forum of Regulators
FY Financial Year
GFA Gross Fixed Assets
GoI Government Of India
GoK Government Of Karnataka
GRIDCO Grid Corporation
HP Horse Power
HRIS Human Resource Information System
ICAI Institute of Chartered Accountants of India
IFC Interest and Finance Charges
IW Industrial Worker
IP SETS Irrigation Pump Sets
KASSIA Karnataka Small Scale Industries Association
KEB Karnataka Electricity Board
KER Act Karnataka Electricity Reform Act
KERC Karnataka Electricity Regulatory Commission
KM/Km Kilometre
KPCL Karnataka Power Corporation Limited
ix
KPTCL Karnataka Power Transmission Corporation Limited
KV Kilo Volts
KVA Kilo Volt Ampere
KW Kilo Watt
KWH Kilo Watt Hour
LDC Load Despatch Centre
MAT Minimum Alternate Tax
MD Managing Director
MFA Miscellaneous First Appeal
MIS Management Information System
MoP Ministry of Power
MU Million Units
MVA Mega Volt Ampere
MW Mega Watt
MYT Multi Year Tariff
NFA Net Fixed Assets
NLC Neyveli Lignite Corporation
NCP Non Coincident Peak
NTP National Tariff Policy
O&M Operation & Maintenance
P & L Profit & Loss Account
PLR Prime Lending Rate
PPA Power Purchase Agreement
PRDC Power Research & Development Consultants
REL Reliance Energy Limited
R & M Repairs and Maintenance
ROE Return on Equity
ROR Rate of Return
ROW Right of Way
RPO Renewable Purchase Obligation
SBI State Bank of India
SCADA Supervisory Control and Data Acquisition System
SERCs State Electricity Regulatory Commissions
SLDC State Load Despatch Centre
SRLDC Southern Regional Load Dispatch Centre
STU State Transmission Utility
TAC Technical Advisory Committee
TCC Total Contracted Capacity
T&D Transmission & Distribution
TCs Transformer Centres
TR Transmission Rate
VVNL Visvesvaraya Vidyuth Nigama Limited
WPI Wholesale Price Index
WC Working Capital
x
KARNATAKA ELECTRICITY REGULATORY COMMISSION,
BENGALURU - 560 001
Dated 11th April, 2017
In the matter of:
Application of CESC in respect of the Annual Performance Review for FY16,
Revision of Annual Revenue Requirement for FY18 and Revision of Retail Supply
Tariff for FY18, under Multi Year Tariff framework.
Present: Shri M.K. Shankaralinge Gowda Chairman
Shri H.D. Arun Kumar Member
Shri D.B. Manival Raju Member
O R D E R
The Chamundeshwari Electricity Supply Corporation Ltd., (hereinafter
referred to as CESC) is a Distribution Licensee under the provisions of the
Electricity Act, 2003, and has, on 30.11.2016, filed the following
applications for consideration and orders:
a) Review of Annual Performance for the financial year 2015-16
(FY16) and approval of revised ARR thereon.
b) Approval for revision of ARR for the financial year 2017-18
(FY18).
c) Approval for revision of Retail Supply Tariff, for the financial year
2017-18 (FY18).
xi
In exercise of the powers conferred under Sections 62, 64 and other provisions
of the Electricity Act, 2003, read with KERC (Terms and Conditions for
Determination of Tariff for Distribution and Retail Sale of Electricity) Regulations
2006, as amended and other enabling Regulations, the Commission has
considered the applications and also the views and objections submitted by
the consumers and other stakeholders. The Commission’s decisions are brought
out in the subsequent Chapters of this Order.
xii
CHAPTER – 1
INTRODUCTION
1.0 Chamundeshwari Electricity Supply Corporation Limited (CESC):
The Chamundeshwari Electricity Supply Corporation Ltd., (CESC) is a
Distribution Licensee under Section 14 of the Electricity Act, 2003
(hereinafter referred to as the Act). The CESC is responsible for purchase
of power, distribution and retail supply of electricity to its consumers and
also for providing infrastructure for Open Access, Wheeling and Banking
in its area of operation which includes five Districts of the State as
indicated below:
1. Mysuru
2. Hassan
3. Mandya
4. Chamarajnagara
5. Kodagu
The CESC is a company registered under the Companies Act, 1956,
incorporated on 19th August, 2004. The CESC commenced its operations
on 1st April, 2005, with four districts in its area of operation.
Susequently, the Madikeri Division (Kodagu District) which was earlier
under the MESCOM, was transferred to the CESC with effect from 1st
April, 2006.
At present the CESC’s area of operations is structured as follows:
CESC, Mysore
HASSAN
MANDYA
KODAGU MYSORE
CH NAGAR
xiii
O&M Zones O&M Circles O&M Divisions
Mysore zone
Mysore Works Circle
VV Mohalla
NR Mohalla
Nanjangud
Hunsur
Mysore O&M Circle
Chamarajnagara
Kollegala
Madikeri
Hassan Circle
Hassan
CR patna
Arasikere
HN Pura
Mandya Circle
Mandya
Pandavapura
Nagamangala
Maddur
These O & M divisions of the CESC are further divided into sixty one O&M
sub-divisions with accounting / non-accounting sections and each O&M
sub division section offices.
The section offices are the base level offices looking into operation and
maintenance of the distribution system in order to provide reliable and
quality power supply to the CESC’s consumers.
xiv
1.1 The CESC at a glance:
The profile of the CESC is as indicated below:
*Includes Posts & Personnel on deputation to CESC
1.2 Number of Consumers, Sales in MU to various categories of
consumers and details of Revenue for FY16 are as follows:
CATEGORY
CESC
No. of
Installation
Sales in
MU
Revenue in
Rs.Crs.
Domestic 2196013 997.76 420.81
Commercial 215323 366.75 306.84
Industrial 38083 886.65 598.54
Agriculture 317955 2390.44 1051.59
Others 82665 763.63 478.45
Total 2850039 5405.23 2856.23
The CESC has filed its application for Annual Performance Review for FY16,
Revision of Annual Revenue Requirement (ARR) for FY18 and revision of
Revision of Retail Supply Tariff for FY18.
Sl.
No. Particulars (As on 30.09.2016) Figures
1. Area Sq. km. 27772.8
2
2. Districts Nos. 5
3. Taluks Nos. 29
4. Population lakhs 815536
9
5. Consumers Lakhs 29.01
6. Energy Sales MU 2958.56
7. Zone Nos. 1
8. DTCs Nos. 100063
9. Assets (including current
assets)
Rs. in Crores 2669.54
10. HT lines Ckt. kms 49289.1
4
11. LT lines Ckt. kms 80600.1
4
12. Total employees strength:
A Sanctioned Nos.* 10428
B Working Nos.* 5461
13. Revenue Demand Rs. in Crores 1644.87
14. Revenue Collection Rs. in Crores 1610.94
xv
The CESC’s application, the objections / views of stakeholders thereon and the
Commission’s decisions on the application for the Annual Performance Review for
FY16, Revision of ARR for FY18 and Revision of Retail Supply Tariff for FY18
are discussed in detail in the subsequent Chapters of this Order.
xvi
CHAPTER – 2
SUMMARY OF FILING & TARIFF DETERMINATION PROCESS
2.0 Background for Current Filing:
The Commission in its Tariff Order dated 30th March, 2016 had approved
the ARR for FY17 to FY19 and the Revised Retail Supply Tariff of CESC for
FY17 under the MYT principles for the control period of FY17 to FY19.
CESC in its present application filed on 30th November, 2016 has sought
for Annual Performance Review (APR) for FY16 based on the audited
accounts, Revision of ARR for the second year of the second year of the
fourth control period i.e. FY18 and revision of Retail Supply Tariff for FY18.
2.1 Preliminary Observations of the Commission
After a preliminary scrutiny of the application the Commission had
communicated its observations to CESC on 20th December, 2016 which
were mainly on the following points:
Capital Expenditure
Sales Forecast
Assessment of IP set consumption
Distribution Losses
Power Purchase
Issues pertaining to items of revenue and expenditure
Other new proposals
Compliance to Directives
The CESC has furnished its replies on 30th December, 2016. The Commission
had issued Rejoinders to the replies vide Commission letter dated 10th January,
2017 and the replies to the Rejoinder were received vide letter dated 16th
January, 2017. The replies furnished by CESC are considered in the respective
Chapters of this Order.
2.2 Public Hearing Process:
As per the Karnataka Electricity Regulatory Commission (Terms and
Conditions for Determination of Tariff for Distribution and Retail Sale of
Electricity) Regulations, 2006, read with the KERC Tariff Regulations, 2000,
and KERC (General and Conduct of Proceedings) Regulations, 2000, the
xvii
Commission vide its letter dated 04th January, 2017 treated the
application of CESC as petition and directed CESC to publish the
summary of ARR and Tariff proposals in the newspapers calling for
objections, if any, from interested persons.
Accordingly, CESC has published the same in the following newspapers:
Name of the News Paper Language Date of Publication
Deccan Herald English
06-1-2017 &
07-1-2017
The Hindu
Kannada Prabha Kannada
Vijayavani
The CESC’s applications on APR of FY16, Revision of ARR for FY18 and
revision of retail supply tariff for FY18 were also hosted on the web sites of
CESC and the Commission for the ready reference and information of the
general public.
In response to the application of CESC, the Commission has received thirty
statements / letters of objections. CESC has furnished its replies to all these
objections. The Commission has held a Public Hearing on 22nd February, 2017
at Mysore. The details of the written / oral submissions made by various
stakeholders and the response from CESC thereon have been discussed in
Chapter - 3 / Appendix to this Order.
2.3 Consultation with the Advisory Committee of the Commission:
The Commission has also discussed the proposals of the KPTCL and all the
ESCOMs in the State Advisory Committee meeting held on 8th March, 2017.
During the meeting the following important issues were also discussed:
Performance of KPTCL / ESCOMs during FY16
Major items of expenditure of KPTCL / ESCOMs for FY18
Members of the Committee have offered valuable suggestions on the
proposals. The Commission has taken note of these suggestions while
passing the Order.
xviii
CHAPTER – 3
PUBLIC CONSULTATION - SUGGESTIONS / OBJECTIONS &
REPLIES
3.1 AS per the provisions of the section 64 of the Electricity Act, 2003, the
Commission has undertaken the process of public consultation, to
invite and suggestions/views/objections from the interested stake-
holders and general public, on the application filed by CESC for
Annual Performance Review for FY16, Revision of Annual Revenue
Requirement for FY18 and Revision of Retail Supply Tariff for FY18. In the
written submissions filed as well as during the public hearing, the Stake-
holders and the public have raised several objections/ made
suggestions, on the CESC Tariff Application. The names of the persons
who have filed written objections and made oral submissions are given
below:
List of persons who filed written objections: -
Sl
No
Applicatio
n No. Name & Address of Objectors
1 AE-01 Sri. Prem Chand, Chief Electrical Traction Engineer,
South Western Railway.
2 AE-02 Smt. Shroti Bhatia, VP (Regulatory Affairs &
Communication), Indian Energy Exchange.
3 CA-01 Sri. K. Krishna Bhat, Koodanahally Estate, Sakaleshpur
Taluk.
4 CA-02 Sri. Ravindra B.N & Others, Kollegal taluk.
5 CA-03 Sri. K.C. Sudarshan, Madikeri, Kodagu.
6 CA-04 Sri. C.A. Subbaiah, Banangala Village, Kodagu.
7 CA-05 Laghu Udyog Bharati - Karnataka
8 CA-06 Sri. Ravindra Prabhu, Chairman, Energy Sub
Committee, HIEMA.
9 CA-07 Sri. Prem Chand, Chief Electrical Traction Engineer,
South Western Railway.
10 CA-08 Sri. Suresh Kumar Jain, Mysore Industries Association.
11 CA-09 Sri. Ravindra Prabhu, Vice President, KIAMA.
12 CA-10 Sri.B. Praveen, Hon’ble General Secretary, KASSIA.
13 CA-11 to
CA-22
Sri. A.B.Yogesh & Others Nanjanagud, Mysuru
14 CA-23 to
CA-28
Sri K.B. Utthappa & Others, Kodagu.
xix
3.2 List of the persons, who made oral submissions during the Public Hearing,
held on 22.02.2017.
SL.
No.
Names & Addresses of Objectors
1 Sri. K. Ravindra Prabhu, KIADB Manufacturers Association &
HIEMA
2 Sri. S. Sudhakar Shetty, Vice President, FKCCI
3 Sri. K.B. Lingaraju, Mysore Chamber of Commerce
4 Sri. Suresh Kumar Jain, Mysore Industries Association
5 Sri. Mallappa Gowda & Manjunath, KASSIA
6 Dr. M.R. Rangantha, Bharatiya Kissan Sangha, Mysuru
7 Sri. Jayakumar, Bharatiya Kissan Sangha, Gundlupet
8 Sri. Ningaraju, Bharatiya Kissan Sangha, Hunsur
9 Sri. G.R.Vidyaranya, Aam Admi Party, Mysuru.
10 Sri. Rajiv, Bharatiya Kissan Sangha, Kodagu
11 Sri. Chetan Jain, IEX
12 Smt. Savitha Ranganath, Voluntary Consumer Organizations
RTI Activist.
13 Sri. Nagabhushana Aradhya, Mysuru
14 Sri. Rajendra Ramapura, Bharatiya Kissan Sangha, Kollegal
15 Sri. Somashekar, Mysuru
16 Sri. Vasanth. S, Ex-Vice President & All ESCOMS Representative
& Karnataka State Licensed Electrical Contractors
Association.
17. Sri. Ravindra, BJP Ex- District President, Kodagu
18 Sri. M.A. Poonacha, Kodagu.
19 Sri. N. Kumaraswamy, Bharatiya Kissan Sangha, Nanjangud.
20 Sri. Mohammed Arief Khan For V.S ARBATTI for BWSSB
21 Sri. D. Sagayamani Raj, Division Electric Engr. South Western
Railways & Sri. D. Soundar Rajan, Dy. Chief Electrical Engineer,
South Western Railways.
3.3 The gist of the objections, replies by CESC and the Commission’s views is
appended to this order as Appendix-1.
xx
CHAPTER – 4
ANNUAL PERFORMANCE REVIEW FOR FY16
4.0 CESC’s Application for APR for FY16:
CESC has filed its application for Annual Performance Review (APR) for
FY16, revision of Annual Revenue Requirement (ARR) and revision of
retail supply tariff for FY18 on 30th November, 2016. CESC has sought the
Annual Performance Review (APR) for FY16 and approval of a revised
ARR thereon based on the Audited Accounts.
The Commission in its letter dated 20th December, 2016 had
communicated its preliminary observations on the application of CESC.
In its letter dated 30th December, 2016, CESC has furnished its replies to
the preliminary observations of the Commission. The Commission had
issued rejoinders on the replies vide letter dated 10th January, 2017 and
the replies to the rejoinders were furnished by CESC in its letter dated 16th
January, 2017.
The Commission in its Multi Year Tariff (MYT) Order dated 6th May, 2013
had approved CESC’s Annual Revenue Requirement (ARR) for FY14 –
FY16. Further, in its Tariff Order dated 2nd March, 2015, the Commission
had approved the APR for FY14 and had revised the ARR along with
Retail Supply Tariff for FY16.
During the course of Annual Performance Review (APR) for FY16, revision
of various items of revenue and expenditure with reference to the
audited accounts for FY16, are being discussed in this Chapter.
4.1 CESC’s Submission:
CESC in its application dated 30th November, 2016, has submitted its
proposals for revision of ARR for FY16 as follows:
xxi
TABLE – 4.1
ARR for FY16 – CESC’s Submission Amount in Rs. Crores
Sl.
No Particulars As Filed
1 Energy at Gen Bus in MU 6444.86
2 Energy at Interface in MU 6256.07
3 Distribution Losses in % 13.60
Sales in MU
4 Sales to other than IP & BJ/KJ 3060.25
5 Sales to BJ/KJ 38.13
6 Sales to IP & BJ/KJ 2306.85
Total Sales 5405.23
Revenue
7
Revenue from other than IP & BJ/KJ and
Misc. Charges 1814.45
8 Tariff Subsidy to BJ/KJ 23.82
9 Tariff Subsidy to IP 1017.96
Total 2856.23
Expenditure
10 Power Purchase Cost 2410.17
11 Transmission charges of KPTCL 305.42
12 SLDC Charges 2.16
Power Purchase Cost including cost of
transmission 2717.75
13 Employee Cost 327.65
14 Repairs & Maintenance 39.24
15 Admin. & General Expenses 51.58
Total O&M Expenses 418.47
16 Depreciation 117.46
Interest & Finance charges
17 Interest on Loans 83.52
18 Interest on Working capital 40.40
Interest on belated payment of PP Cost 7.05
19 Interest on consumer deposits 38.07
20 Other Interest & Finance charges 0.47
21
Less: interest & other expenses
capitalised 19.22
Total Interest & Finance charges 150.29
22 Other Debits 4.79
23 Net Prior period Debit/Credit (5.89)
24 Return on Equity 0.00
25 Provision for taxation 14.97
26
Funds towards Consumer
Relations/Consumer Education 0.00
27 Other Income 105.08
Net ARR 3312.76
xxii
Considering the revenue of Rs.2856.23 Crores against a net ARR of
Rs.3312.77 Crores, CESC has reported a gap in revenue of Rs.456.54
Crores for FY16.
4.2 CESC’s Financial Performance as per Audited Accounts for FY16:
An overview of the financial performance of CESC for FY16 as per its
Audited Accounts is given below:
TABLE – 4.2
Financial Performance of CESC for FY16
Amount in Rs. Crores
Sl.
No. Particulars FY16
Receipts
1 Revenue from Tariff and misc. charges 1814.45
2 Tariff Subsidy 1041.78
3
Income on account of Regulatory Asset/Truing
up Subsidy 464.46
Total Revenue 3320.69
Expenditure
4 Power Purchase Cost 2410.17
5 Transmission charges of KPTCL 305.42
6 SLDC Charges 2.16
Power Purchase Cost including cost of
transmission 2717.75
7 O&M Expenses 418.48
8 Depreciation 91.89
Interest & Finance charges
9 Interest on Loans 83.52
10 Interest on Working capital 40.40
11
Interest on belated payment of power
purchase 7.05
12 Interest on consumer deposits 38.08
13 Other Interest & Finance charges 0.47
14 Less; Interest and other expenses capitalized 19.22
Total Interest & Finance charges 150.30
15 Other Debits 4.79
16 Net Prior Period Debit/Credit (5.89)
17 Other income 79.52
18 Income tax 14.97
Total Expenditure 3312.77
xxiii
As per the Audited Accounts, CESC has earned a profit of Rs.7.92 Crores
for FY16. The profits / losses reported by CESC in its audited accounts in
the previous years are as follows:
TABLE – 4.3
CESC’s Accumulated Profit / Losses
Particulars Amount in
Rs. Crs
Accumulated losses as at the end of FY10 (285.15)
Profit earned in FY11 11.38
Losses incurred in FY12 (123.45)
Losses incurred in FY13 (269.63)
Losses incurred in FY14 (15.61)
Profits earned in FY15 40.27
Profits earned in FY16 7.92
Accumulated losses as at the end of FY16 (634.27)
As seen from the above table, the accumulated loss as at the end of
FY16 is Rs.634.27 Crores.
APR Exercise by the Commission:
The Commission has taken up the Annual Performance Review for FY16,
duly considering the actual revenue and expenditure as per the Audited
Accounts vis-à-vis the revenue and expenditure approved by the
Commission, in its Tariff Order dated 2nd March, 2015. The item-wise
review of expenditure and the decisions of the Commission thereon are
as discussed in the following paragraphs:
4.2.1 Sales for FY16:
a) Sales - other than IP sets:
Annual Performance Review for FY-16
xxiv
The Commission in its Tariff Order 2015 dated 02.03.2015 had approved
total sales at 5744.83 MU to various consumer categories, as against the
proposed sale of 5798.94 MU. The Actual sales of CESC is 5405.24 MU, as
per the application filed by CESC [D-2 FORMAT], indicating a short fall in
sales to an extent of 339.59 MU as compared to the approved sales. The
reduction in sales is 288.66 MU is in LT-categories and 50.93 MU in HT-
categories. The Commission notes that, as against the approved sales of
3084.08 MUs to categories other than BJ/KJ and IP sets, the actual sales
achieved by CESC is 3060.24 MU, resulting in the reduction of sales to
these categories by 23.84 MU. Further, CESC has sold 2345.00 MU to BJ/KJ
and IP category against approved sales of 2660.75 MU resulting in
decreased sales to these categories by 315.75 MU.
The category-wise sales approved by the Commission in its Tariff Order
2015 dated 02.03.2015 and the actuals for FY 16 are indicated in the
table below:
TABLE-4.4
Approved and actual Sales for FY16
Energy in MU
Category Approved by the
Commission Actuals Difference
LT-2a* 959.55 954.37 -5.18
LT-2b 7.37 7.85 0.48
LT-3 262.46 259.57 -2.89
LT-4b 1.17 1.12 -0.05
LT-4c 11.57 11.59 0.02
LT-5 137.8 136.56 -1.24
LT-6 135.53 162.96 27.43
LT-6 90.66 99.90 9.24
LT-7 13.66 12.95 -0.71
HT-1 438.07 420.40 -17.67
HT-2a 794.17 750.08 -44.09
HT-2b 127.16 107.17 -19.99
HT-2c 31.09 45.15 14.06
HT-3a & b 65.14 82.46 17.32
HT-4 7.75 5.27 -2.48
HT-5 0.92 2.84 1.92
Sub total 3084.08 3060.24 -23.84
BJ/KJ 36.28 38.13 1.85
IP 2624.47 2306.87 -317.6
xxv
Sub total 2660.75 2345.00 -315.75
Grand total 5744.83 5405.24 -339.59
*Including BJ/KJ installations consuming more than 18 units/month
The Commission notes that the major categories contributing to the
reduction in sales are HT Industries (44.09 MU), HT Commercial (19.99 MU)
and IP sets (317.60 MU). The increase in sales is mainly in respect of LT-6
water supply installations.
The CESC has attributed the above variation in sales to the following:
i. Reduction in IP set sales is due to reduction in the specific
consumption to 7384 units/year/IP-set as against the approved
figure of 8195 units/year/IP-set, consequent to segregation of Agri-
feeders under NJY scheme.
ii. Reduction in HT-2a sales is due to twelve industries consuming 180.82
MU under Open Access.
iii. Increase in sales to LT-water supply is due to servicing of 1252 new
installations.
b) Sales to IP sets
i) In its Tariff Order dated 2nd March, 2015, the Commission had approved
a specific consumption of IP-sets at 8,195 units/installation/annum for
FY16, whereas, as per the data of IP-set consumption reported by the
CESC in its Tariff filing for APR of FY16, the specific consumption works
out to 7,469 units/installation/annum, which indicates a decrease in
the specific consumption by 726 units/installation/annum. The total IP-
set consumption reported for the FY16 is 2,306.87 MU as against
2,624.47 MU sales quantum approved by the Commission. Thus, the
specific consumption has decreased by 726 units /installation/annum
with the corresponding decrease in sales by 317.6 MU when
compared to the quantity approved by the Commission for the FY16.
ii) Further, the Commission had approved 3,32,629 as the number of
installations for FY16, whereas the actual number of installations
serviced as reported by the CESC is 3,17,674. The difference in number
of installations between the approved and the actuals reported is
xxvi
14,955. This indicates a decrease of around 4.5 per cent in the number
of installations serviced, as compared to the approved number of
installations by the Commission for the FY16. Also, it is noted that the
shortfall in the sales by 317.6 MU can be attributed to less number of
installations serviced, when compared to the number of installations
projected for FY16.
iii) The Commission in its Tariff Order dated 2nd March, 2015, had
directed the CESC to furnish feeder-wise IP-set consumption based on
the 11 kV feeders’ energy meter data, every month, to the
Commission, in respect of exclusive agricultural feeders segregated
under NJY scheme considering that the energy consumed by the IP-
sets can be accurately measured at the 11 kV level at the substations
after allowing the losses prevailing in the distribution system, as per the
following format prescribed by the Commission:
TABLE-4.5
Format for submission of details of IP set Installations
Mo
nth
Na
me
of
Su
b-d
ivis
ion
No
.
Se
gre
ga
ted
Ag
ric
ultu
ral
Fe
ed
ers
in
th
e s
ub
div
isio
n
Mo
nth
ly C
on
sum
ptio
n in
MU
as
rec
ord
ed
in
all t
he
ag
ric
ultu
ral
fee
de
rs a
t
the
su
bst
atio
ns
pe
rta
inin
g
to t
he
div
isio
n
Dis
trib
utio
n lo
ss(1
1k
V lin
e,
DTC
s,&
LT
lin
e)
Plu
s sa
les
to o
the
r c
on
sum
ers
if
an
y,
in M
U (
lo
sse
s in
all t
he
ag
ric
ultu
ral fe
ed
ers
on
ly
to b
e c
on
sid
ere
d)
Ne
t c
on
sum
ptio
n d
uly
de
du
ctin
g t
he
Dis
trib
utio
n
loss
(1
1k
V &
LT)
& a
ny
oth
er
loa
ds
if a
ny
No
. o
f IP
se
ts c
on
ne
cte
d
to t
he
ag
ric
ultu
ral fe
ed
ers
in t
he
su
bd
ivis
ion
Av
era
ge
co
nsu
mp
tio
n o
f
IP /
mo
nth
(sp
ec
ific
co
ns
in u
nits
/IP
/mo
nth
)
Tota
l n
o o
f IP
se
ts in
th
e
sub
div
isio
n (
as
pe
r D
CB
)
Tota
l sa
les
of
IP s
ets
in
MU
1 2 3 4 5 6=(4-5) 7 8 9 10=8*9
April to
March
Subdivisi
on-1
Subdivisi
on-2
Subdivisi
on….
iv) Considering the fact that the ESCOMs have bifurcated the 11 KV
feeders into separate rural and agricultural feeders, the Commission
has adopted the above methodology in the Tariff Order dated 12th
May, 2014, for FY15, which shall be applicable for all the future
computations. Prior to this, in the absence of universal metering of IP-
set installations, the Commission had allowed the ESCOMs to assess
the IP-set consumption, based on the readings of the sample meters
fixed to the distribution transformer Centres (DTCs) feeding
xxvii
predominantly IP-set loads. The sample was so selected that in each
O&M section, two to three DTCs feeding predominantly IP-set loads,
were covered and in each subdivision, about ten such DTCs were
covered. As per this methodology, the overall IP-consumption for the
Company was being assessed on the basis of specific consumption
arrived at from the metered consumption data of sample meters fixed
to DTCs.
v) For instance, as per the IP-set data for FY13 submitted to the
Commission by the CESC, a total of 798 DTCs covering 7,175 IP-sets out
of the total 2,55,173 IP-sets in its jurisdiction, were considered for
assessing the total IP-set consumption for the Company. It is observed
that the sample IP-sets considered to assess the total IP-
consumption for FY13, based on the sample DTCs meter readings,
constituted only 2.8 per cent. Thus, a small number of IP-sets were
considered for arriving at the total IP consumption, as compared to a
large sample (39% in March 2016) being considered now after
segregating the feeders under NJY. Therefore, this would be a better
representation of sample in terms of metered consumption for
computing the overall IP-set consumption, as compared to the
methodology followed earlier.
vi) Accordingly, the CESC was directed to furnish 11 kV feeder-wise IP-
set consumption based on energy meters’ reading data in respect of
agriculture feeders segregated under NJY scheme, duly deducting
the distribution losses prevailing in 11 kV lines, distribution transformers
and LT system, to the Commission, every month.
vii) The CESC in its current tariff filing has submitted the data of IP-sets
computing the total IP-consumption based on the specific
consumption in respect of the exclusive agricultural feeders
segregated under NJY, for FY16. However, as observed from the
data, there was inconsistency in the number of installations as well as
the total consumption (computed on the basis of exclusive
agricultural feeders) between the data submitted to the Commission
xxviii
and the data as reported in D2 format of the Tariff application.
Further, two different figures of the IP-set consumption based on the
exclusive agricultural feeders were submitted to the Commission as
2,024.25 MU and 2,319.576 MU, whereas the consumption reported in
format D2 of Tariff filing was 2,306.87 MU, indicating a large variation in
the data submitted to the Commission.
viii) The Commission in its preliminary observations had directed the CESC
to justify the IP-set consumption of 2,306.97 MU reported in format D2
of its Tariff filing with necessary data of segregated agricultural feeders
in support of the same and also clarify the inconsistency in the
number of installations as well as consumption data of agricultural
feeders reported for FY16.
ix) The CESC, in its reply to the preliminary observations made by the
Commission, has stated that it has submitted the IP-set consumption
based on the energy meters’ data in respect of the segregated
agricultural feeders as desired by the Commission. The CESC while
submitting the IP-consumption as per the agricultural feeders’ meter
reading data has reiterated the consumption as 2,024.25 MU and
2,319.58 MU (two different figures) and the consumption of 2,306.87
MU as claimed in the format D2 of its tariff filing, for FY16. Thus, the IP-
consumption of 2,306.87 MU claimed in the Tariff filing was not
agreeing with the consumption reported on the basis of specific
consumption arrived at from agricultural feeders’ energy meter data.
x) Further, the CESC in its replies submitted to the Commission (on the
Commission’s rejoinder) vide No. CESC/GM(coml.)/F-1/2016-17/19125,
dated 18.1.2017, has revised the IP-set consumption as 2,077.97 MU
based on the specific consumption of segregated agricultural
feeders’ meter reading, for FY16. Also, it has stated that there is still a
difference between the consumption reported as per Format D-2 of its
Tariff filing and the agricultural feeders’ meter reading data furnished
to the Commission due to the following reasons:
xxix
The number of IP-set installations as at the end of March, 2016 were
3,17,674, whereas the number of IP-sets connected to the bifurcated
agricultural feeders was only 84,851.
The consumption in respect of IP-sets in the bifurcated feeders was
computed on the basis of data from agricultural feeders’ meters,
whereas in respect of non-bifurcated and rural feeders, the
consumption was arrived at on the basis of readings from the sample
meters provided to DTCs predominantly feeding to the IP loads.
The specific consumption is less in respect of certain agricultural
feeders in Hunsur division, as the areas covered by these feeders are
fed by Kaveri and kabini water canals and hence, these figures cannot
be considered for non-bifurcated feeders.
For agricultural feeders three-phase power supply is being arranged for
7 hours as per orders of GoK and in respect of rural feeders, single-
phase power supply is also arranged in addition to three-phase
supply. Thus, the consumption of IP-sets in rural and non-bifurcated
feeders is higher than those in exclusive agricultural feeders.
The consumption by unauthorized IP-sets has also contributed to the
difference in IP-set consumption.
With the above justification, the CESC has requested the Commission to
consider the sales of IP-sets as 2,306.87 MU as reported in the Format D-2 of
its Tariff Application for the APR of FY16 and not to consider the revised
consumption of 2,077.97 MU which was submitted based on the
agricultural feeders’ meter reading data.
xi) The reply submitted by the CESC for the difference in IP-set
consumption is not convincing due to the following reasons:
a. Even, when 84,851 number of IP-set installations under bifurcated
feeders, out of total 3,17,67 number of IP-sets as at the end of
March 2016, are considered, they constitute around 27%, whereas
the IP-sets connected to DTCs (to which meters are provided)
feeding predominantly IP-set loads constitutes insignificant
number of IP-sets. This means the IP-set consumption based on
specific consumption arrived at from the meter readings data of
agricultural feeder (larger sample of 27%) needs to be considered
xxx
while computing the IP-set consumption for the entire company,
instead of considering the readings from the sample meters
provided to DTCs feeding predominant IP loads, which is based on
fewer IP-sets data.
b. As regards lower consumption in Hunsur division due to availability
of canal water, the division’s average IP-consumption could be
considered for computation of subdivision-wise IP consumption if
such a subdivision is not having bifurcated feeders within the same
division.
c. Regarding the contention that the IP consumption is more in non-
bifurcated and rural feeders, compared to bifurcated feeders due
to supply of single phase power in addition to three-phase power,
it is noted that the non-bifurcated agricultural feeders are
supplied with open delta supply/restricted supply with a relay
arrangement in the feeders at the substations to trip the same if
current is drawn more than the predetermined values. This would
even out the difference in power supply position between the
bifurcated and non-bifurcated feeders and therefore, the
average values of IP-consumption would be the same in both
bifurcated and non-bifurcated feeders.
d. As regards unauthorized IP-sets, the CESC has taken them into
account, as and when they are identified in the field by
regularizing them and assigning them with the RR numbers. This
means, barring a very few installations existing in the field as
unauthorized, majority of the IP-sets are being accounted for and
hence the consumption recorded in the exclusive agricultural
feeders at the substation is inclusive of these unauthorized IP-sets
also. The specific consumption of IP-sets is arrived at on the basis
of consumption recorded in the agricultural feeders at substations,
segregated under NJY, deducting the allowable losses prevailing
in the 11kV line, distribution transformers and LT line. This means
that the consumption of unauthorized IP-sets is also reflected in
xxxi
the total consumption recorded in the feeders at the substations.
Thus, the unauthorized IP-sets existing in the field are being
accounted for and hence, the contention of the CESC that they
are contributing to the difference in consumption is not
acceptable.
xii) Therefore, as discussed above, the revised IP-consumption submitted
by the CESC as per the segregated agricultural feeders’ meter
reading data is 2,077.97 MU and there is a difference of 228.9 MU
(2,306.87 MU - 2077.97 MU =228.9 MU). In consumption as declared in
tariff filing. There is no justification for accepting this consumption
difference of 228.9 MU in consumption as declared in tariff filing.
Hence, the Commission decides to disallow the consumption of 228.9
MU from out of 2,306.87 MU claimed by the CESC in its Tariff filing.
xiii) Accordingly, the Commission decides to approve IP sets sales of
2,077.97 MU on the basis of the revised meter readings data of
segregated agricultural feeders reported for the FY16, as against
2,306.87 MU claimed by the CESC in its Tariff filing, after disallowing
sales to an extent of 228.9 MU.
In the light of the above discussion, the Commission approves total sales
of 5176.34 MU for FY16 and the category-wise sales as indicated in the
table above:
TABLE – 4.6
Approved & Actual Sales for FY16 Million Units
Category
Approved as
per Tariff
Order dated
02.03.2015
Actuals as
per APR
LT-2a* 959.55 954.37
LT-2b 7.37 7.85
LT-3 262.46 259.57
LT-4b 1.17 1.12
LT-4c 11.57 11.59
LT-5 137.8 136.56
xxxii
LT-6 135.53 162.96
LT-6 90.66 99.9
LT-7 13.66 12.95
HT-1 438.07 420.4
HT-2a 794.17 750.08
HT-2b 127.16 107.17
HT-2c 31.09 45.15
HT-3a & b 65.14 82.46
HT-4 7.75 5.27
HT-5 0.92 2.84
Sub total 3084.08 3060.24
BJ/KJ 36.28 38.13
IP 2624.47 2077.97
Sub total 2660.75 2116.10
Grand total 5744.83 5176.34 *Including BJ/KJ installations consuming more than 18 units/month
4.2.2 Distribution Losses for FY16:
CESC’s Submission:
The Commission in its Tariff Order dated 2nd March,2015 had
approved distribution losses for FY16 as shown in the table below:
Distribution Loss Range FY16
Upper limit 15.00%
Average 14.50%
Lower Limit 14.00%
CESC, in its annual accounts, has reported the distribution losses
at 13.60% for FY16.
1 Energy at Interface Points in MU 6256.07
2 Total sales in MU including wheeled
energy 5405.23
3 Distribution losses as a percentage of
input energy at IF points 13.60%
Commission’s analysis and decisions:
The distribution loss of 13.60% reported by CESC is below the targeted
losses fixed by the Commission for FY16 by 0.90% percentage points.
However, as per the revised consumption of IP sets reckoned as
xxxiii
discussed in the preceding paragraphs of this Chapter, the percentage
of distribution losses of CESC for FY16 is 17.26%.
In the above context, the Commission notes that the actual overall
distribution losses of 17.26% are far beyond the approved upper limit of
losses for FY16. Hence, penalty for exceeding the targeted loss levels
has been factored in the APR for FY16 as detailed below:
TABLE-4.7
Penalty for exceeding targeted loss levels in FY16 Amount in Rs. Crores
Particulars FY16
Actual input at IF points as per audited accounts in
MU 6256.07
Retail sales in MU 5176.34
Percentage distribution losses 17.26%
Target Upper limit of distribution loss 15.00%
Increase in loss–in percentage point 2.26
Input at target loss for actual sales in MU 6089.81
Increase in input due to increase in distribution losses
in MU 166.26
Average cost of power purchase in Rs./unit 4.217
Increase in power purchase cost due to increase in
losses in Rs. Crores 70.11
Thus, the Commission decides to levy penalty of Rs.70.11 Crores for
exceeding the targeted distribution loss levels for FY16.
4.2.3 Power Purchase for FY16
CESC Submission:
The Commission in its Tariff order dated 30th March,2016, had approved
source-wise quantum and cost of power purchase for FY16. CESC, in its
application has submitted the details of actual power purchase for FY16
for the purpose of Annual Performance Review. The details of power
purchase are as under:
xxxiv
TABLE – 4.8
Source-wise Power Purchases during FY16
* Source : D1 format
Commission’s analysis and decisions: [
1. The actual power purchase for FY16 as filed by CESC for approval of
Annual Performance Review is 6444.86 MU amounting to Rs. 2717.75
Crores, as against the approved quantum of 6984.52 MU amounting to
Rs. 2369.15 Crores. This represents reduction in quantum of power
purchase to an extent of 539.66 MU and increase in the cost by Rs.
348.57 Crores. This has been reflected in reduced sales to an extent of
568.50 MU in FY16.
Source of Generation
Actuals for FY16 Approved for FY16 Difference-between Actuals
and Approved-for FY16
% increase
(+)/decrease (-)
over an
approved figures
Energy
in MUs
Cost in
Rs Cr.
Rate in
Rs per
Unit
Energy
in MUs
Cost in
Rs Cr.
Rate in Rs
per Unit
Energy
in MUs
Cost in
Rs Cr.
Rate in
Rs per
Unit
Energy Cost
KPCL Hydel
Stations
1030.87 114.81 1.11 1829.66 91.50 0.50 -798.79 23.29 0.61 -43.66 25.45
KPCL-
Thermal
Stations
1313.99 593.48 4.52 1826.26 715.70 3.92 -512.27 -122.22 0.60 -28.05 -
17.08
CGS 1724.1 539.44 3.13 1549.83 465.73 3.01 174.27 73.71 0.12 11.24 15.83
Major IPPs 991.82 415.36 4.20 970.19 400.92 4.13 21.63 15.44 0.07 2.23 3.85
IPPs -Minor
(NCE
Projects)
469.92 167.47 3.56 627.97 235.47 3.75 -158.05 -68.00 -0.19 -25.17 -
28.88
Other
States
Projects
4.78 8.13 17.01 21.26 3.83 1.80 -16.48 4.30 15.21 -77.52 112.2
7
Short
/Medium
term
480.62 249.24 5.19 159.35 83.66 5.25 321.27 165.58 -0.06 201.61 197.9
2
U I charges 66.74 20.36 3.05 66.74 20.36
Sec-11 331.48 168.25 5.08
331.48 168.25
Transmissio
n Charges
(KPTCL &
PGCIL)
414.65
368.78
45.87
SLDC
Charges
(POSOOC&
SLDC)
2.16
3.57
-1.41
Energy
Balancing 30.54 21.21 6.94
Others
Charges 2.19
TOTAL 6444.86 2717.75 4.22 6984.52 2369.15 3.39 -539.66 348.57 0.82 -7.73 14.71
xxxv
2. Against the approved quantum of 6984.52 MU, the actual power
purchased by CESC is 6444.86 MU for FY16, which is about 7.73% less than
the approved quantum.
3. On an analysis of the source-wise approved and actual power
purchases, the following deviations in the quantum of energy and its
cost of purchase are observed:
i. There is shortfall in supply from sources of power like KPCL Hydel, KPCL
Thermal and IPP minor (RE/ NCE) as follows:
TABLE-4.9
Difference between Source-wise approved and Actual Energy Purchase
Source of Generation
Energy Difference
between actual
and approved in
MU
Cost Difference
between actual
and approved in
Rs Cr.
KPCL Hydel - 798.79* 23.29
KPCL Thermal -512.27* -122.22**
IPP Minor(RE/NCE ) -158.05* -68.00**
* (-) indicates deficit **(-) indicated excess cost
The shortfall from the conventional sources has been met from the
un-requisitioned surplus power from CGS & major IPP sources apart from
short-term power to a tune of 480.62 MU at a cost of Rs.249.24 Crores.
CESC has incurred an additional cost Rs.348.57 Crores towards overall
deficit in the availability of power, resulting in an increase in per unit cost
by 82 Paise.
ii. The change in the source-wise mix of supply, reconciliation of energy
and its cost among ESCOMs have resulted in higher average power
purchase cost of CESC at the rate of Rs.4.22 per KWh as against the
approved rate of Rs.3.39 per KWh.
4. In order to ensure proper accounting of energy and its cost, CESC is
directed to reconcile the inter-ESCOM energy exchanges and its costs
xxxvi
every month and it shall collect/pay the corresponding amounts out of
the tariff subsidy received from Government of Karnataka,
5. The Commission notes that, the SLDC has not implemented the intra-state
ABT. As per the directions issued by the Government of Karnataka vide
its letter dated 28th January, 2016, intra state ABT has to be
implemented immediately by the KPTCL and ESCOMs. The Commission
therefore directs the SLDC, KPCL and the CESC to take appropriate
action immediately to implement intra-state ABT and to host the details
thereof, on their respective websites.
6. The power purchases made by the CESC during FY16 from different
sources of generation also include the energy purchased under Section
11 of the Electricity Act, 2003, in pursuance of the Government Order
dated 16.09.2015. The Government, in the said order, had fixed a
provisional tariff of Rs.5.08 Per unit subject to determination of final tariff
by this Commission. The Commission in its order dated 18th August,2016,
has fixed the final tariff of Rs.4.79 per unit and has ordered recovery of
the difference amount (Rs.5.08- 4.79) from the generators. However,
some of the generators have filed petitions before the Hon’ble ATE.
Some of the generators have also filed review petitions before this
Commission. The Hon’ble ATE has ordered not to recover the difference
amount pending disposal of the petitions. Hence the power purchase
cost allowed in this order is subject to the decision of the Hon’ble ATE
and also this Commission.
7. On analysis of Power Purchase cost for FY16 in respect of KPCL Hydel
Stations, it is observed that the rates allowed per unit by ESCOMs, varies
among ESCOMs as given bellow:
BESCOM Rs 0.90 per unit.
MESCOM Rs 1.45 per unit.
CESC Rs 1.11 per unit.
HESCOM Rs 0.91 per unit.
GESCOM Rs 0.97 per unit.
xxxvii
CESC has allowed Rs.1.11 per unit, which indicates that while making
payment of the power purchase bills, adequate checks have not been
exercised. In FY15 the power purchased by ESCOMs from KPCL Hydel is
as under:
BESCOM Rs 0.57 per unit.
MESCOM Rs 0.56 per unit.
CESC Rs 0.58 per unit.
HESCOM Rs 0.56 per unit.
GESCOM Rs 0.59 per unit.
It is seen from the above that there is no significant variation in the rates
allowed in FY15 among the ESCOMs, as compared with the rates paid in
FY16. There should be justifiable reasons for the variations, which are not
available in the tariff applications.
In the light of this, CESC is directed to verify correctness of the payment
made by it at the rate of Rs.1.11 per unit to KPCL Hydel power. The
excess payment, if any, may be recovered from KPCL under intimation
to the Commission.
The Commission decides to approve the power purchase of 6444.86 MU
at a cost of Rs.2717.75 Crores for the purpose of Annual Performance
Review for FY16.
4.2.4 Renewable Purchase Obligation (RPO) compliance by CESC for FY16:
CESC in the petition has filed the details of RPO compliance for solar and
non-solar RPO for 2015-16 as indicated below:
TABLE-4.10
RPO Compliance for FY16
Energy Purchased-MU 6444.86
Non-Solar energy required to be procured at 10% target-
MU
644.49
Non-Solar energy actually procured excluding energy sold
under green tariff -MU
723.73
xxxviii
Non-Solar compliance as percentage of energy purchased 11.23%
Solar energy required to be procured at 0.25% target-MU 16.11
Solar energy actually procured -MU 25.22
Solar compliance as percentage of energy purchased 0.39%
For validating the RPO compliance, the Commission had directed CESC
to furnish the data as per a specified format, duly reconciling the data
with audited accounts.
CESC in their replies have furnished the following data:
TABLE-4.11
Non-solar RPO Compliance
No. Particulars Quantum
in MU
Cost-
Rs.Crores.
1 Total Power Purchase quantum
from all sources
6444.85 2717.75
2 Non–solar Renewable energy
purchased under PPA route at
Generic tariff including Non-
solar RE purchased from KPCL
457.39 158.17
3 Non –solar Short-Term purchase
from RE sources, excluding sec-
11 purchase
127.55 65.47
4 Non –solar Short-Term purchase
from RE sources under sec-11
138.63 70.36
5 Non-solar RE purchased at
APPC
0 0
6 Non-solar RE pertaining to
green energy sold to
consumers under green tariff
0 0
7 Non-solar RE purchased from
other ESCOMs
0 0
8 Non-solar RE sold to other
ESCOMs
0 0
9 Non-solar RE purchased from
any other source like banked
energy purchased at 85% of
Generic tariff
0.16* 0.06
10 Total Non-Solar RE Energy
Purchased
[No 2+ No.3+No.4+No.5
+No.7+No.9]
723.73
11 Non-Solar RE accounted for
the purpose of RPO
0
xxxix
[ No.10- No.5-No.6-No.8]
12 Non-solar RPO complied in %
[No11/No1]*100
11.23
* As per the breakup details furnished, it is 0.48 MU, which is reckoned for the Purpose of RPO.
TABLE-4.12
Solar RPO Compliance
No. Particulars Quantum
in MU
Cost- Rs.
Crs.
1 Total Power Purchase quantum from all
sources
6444.85 2717.75
2 Solar energy purchased under PPA route
at Generic tariff including solar energy
purchased from KPCL
12.65 9.31
3 Solar energy purchased under Short-
Term, excluding sec-11 purchase
0 0
4 Solar Short-Term purchase from RE under
sec-11
0 0
5 Solar energy purchased under APPC 0 0
6 Solar energy pertaining to green energy
sold to consumers under green tariff
0 0
7 Solar energy purchased from other
ESCOMs
0 0
8 Solar energy sold to other ESCOMs 0 0
9 Solar energy purchased from NTPC (or
others) as bundled power
12.56 13.51
10 Solar energy purchased from any other
source like banked energy purchased at
85% of Generic tariff
0 0
11 Total Solar Energy Purchased
[No2+No.3+No.4+No.5+No.7+No.9+No.10]
25.22 22.82
12 Solar energy accounted for the purpose
of RPO [ No.11- No.5-No.6-No.8]
0 0
13 Solar RPO complied in %
[No12/No.1]*100
0.39
The Commission has approved total input energy of 6444.86 MU for FY16
in its APR. Based on this input energy, CESC was required to purchase
644.49 MU of Non-Solar energy and 16.11 MU of solar energy to meet its
RPO targets. Considering the data submitted by CESC, the Commission
notes that CESC has achieved 11.23% of Non-Solar and 0.39% of solar
RPO targets for FY16. Thus, CESC has over-achieved its non-solar and
solar RPO targets by 1.23 percentage points and 0.14 percentage points
respectively.
xl
4.2.5 Operation and Maintenance Expenses:
CESC’s Submission:
In its application, the CESC, as per its audited accounts, has
requested to approve O&M expenses of Rs.418.47 Crores for FY16.
The break-up of O&M expenses are as follows:
TABLE – 4.13
O & M Expenses – CESC’s submission
Amount in Rs. Crores
Particulars FY16
Employee cost
327.65
Administrative & General Expenses 51.58
Repairs and Maintenance 39.24
Total O & M Expenses 418.47
Commission’s analysis and decisions:
The Commission in its Tariff Order dated 2nd March, 2015 had approved
O&M expenses for FY16 as detailed below:
TABLE – 4.14
Approved O&M Expenses as per Tariff Order dated 02.03.2015
Particulars FY16
No. of installations as per actuals as per Audited
Accts 2864790
Weighted Inflation Index 6.69%
CGI based on 3 Year CAGR 4.12%
Actual O&M expenses for FY13 - in Rs. Crs. 326.07
Total approved O&M Expenses for FY16 – in Rs. Crs. 409.15
The Commission in its preliminary observations, on the application of
CESC, had sought the details of the certain expenses booked under A &
G expenses during FY16 and noted the replies furnished.
The Commission notes that the actual O&M expenses reported by CESC
are more than the approved O&M expenses by Rs.9.32 Crores. The
Commission, in accordance with the methodology adopted while
approving the ARR for FY14-16 and subsequent APRs, proceeds with the
determination of normative O&M expenses based on the 12 Year data
of WPI and CPI besides considering 3 year compounded annual growth
rate (CAGR) of consumers. Considering the Wholesale Price Index (WPI)
xli
as per the data available from the Ministry of Commerce & Industry,
Government of India and Consumer Price Index (CPI) as per the data
available from the Labour Bureau, Government of India and adopting
the methodology followed by the CERC with CPI and WPI in a ratio of
80:20, the allowable rate of inflation for FY16 is computed as follows:
TABLE-4.15
Inflation to be allowed for FY16
Year WPI CPI
Compo
site
Series
Yt/Y
1=Rt Ln Rt
Year
(t-1)
Product
[(t-1)*
(LnRt)]
2004 98.72 111.1 108.624
2005 103.37 115.8 113.314 1.04 0.04 1 0.04
2006 109.59 122.9 120.238 1.11 0.10 2 0.20
2007 114.94 130.8 127.628 1.17 0.16 3 0.48
2008 124.92 141.7 138.344 1.27 0.24 4 0.97
2009 127.86 157.1 151.252 1.39 0.33 5 1.66
2010 140.08 175.9 168.736 1.55 0.44 6 2.64
2011 153.35 191.5 183.87 1.69 0.53 7 3.68
2012 164.93 209.3 200.426 1.85 0.61 8 4.90
2013 175.35 232.2 220.83 2.03 0.71 9 6.39
2014 182.00 246.90 233.92 2.15 0.77 10 7.67
2015 177.03 261.42 244.542 2.25 0.81 11 8.93
A= Sum of the product column 37.56
B= 6 Times of A 225.37
C= (n-1)*n*(2n-1) where n= No of years of data=12 3036.00
D=B/C 0.07
g(Exponential factor)= Exponential (D)-1 0.0771
e=Annual Escalation Rate (%)=g*100 7.71
For the purpose of determining the normative O & M expenses for FY16,
the Commission has considered the following:
a) The actual O & M expenses allowed for FY13 excluding contribution
to Pension and Gratuity Trust.
b) The three year compounded annual growth rate (CAGR) of the
number of installations considering the actual number of installations
as per the audited accounts up to FY16 at 3.92%.
c) The weighted inflation index (WII) at 7.71% as computed above.
d) Efficiency factor at 2 % as considered in the earlier two control
periods.
xlii
Thus, the normative O & M expenses for FY16 will be as follows:
TABLE – 4.16
Normative O & M Expenses for FY16
Particulars FY16
No. of Installations As per actuals as per Audited Accts 2848206
Weighted Inflation Index 7.71%
Consumer Growth Index (CGI) based on 3 Year CAGR 3.92%
Base year actual O & M expenses for FY13 excluding
P&G contribution - Rs. Crores 270.60
O&M Index= 0&M (t-1)*(1+WII+CGI-X)- Rs. Crores. 349.27
The above normative O & M expenses have been computed without
considering the contribution to Pension and Gratuity Trust for FY16.
The Commission has treated the employee costs on account of
contribution to P&G Trust as uncontrollable O&M expenses. This
component has been allowed beyond the normative O&M expenses to
enable the ESCOMs to meet their actual employee costs.
CESC, as per the audited accounts has incurred an amount of Rs.64.31
Crores towards contribution to Pension and Gratuity Trust for FY 16.
Considering the request of CESC to treat the pension and gratuity
contribution as uncontrollable O & M expenses, the Commission
computes the allowable O & M expenses for FY16 as follows:
TABLE – 4.17
Allowable O & M Expenses for FY16 Amount in Rs. Crores
Sl.
No. Particulars FY16
1 Normative O & M expenses 349.27
2 Additional employee cost (uncontrollable O & M
expenses)
64.31
Allowable O & M expenses for FY16 413.58
Thus, the Commission decides to allow an amount of Rs.413.58 Crores as
O&M expenses for FY16.
xliii
4.2.6 Depreciation:
CESC’s Submission:
CESC, in its application has claimed an amount of Rs.117.46 Crores as
gross depreciation as per the audited accounts. Further, an amount of
Rs.25.57 Crores towards the depreciation on account of assets created
out of consumers’ contributions / grants as per Accounting Standards
(AS) – 12, is considered under other income as per the Audited Accounts
for FY16. Thus the net amount of depreciation claimed by the CESC in its
tariff application is Rs. 91.89 Crores for FY16.
The asset-wise depreciation claimed by the CESC is as follows:
TABLE – 4.18
Depreciation for FY16- CESC’s Submission
Amount in Rs. Crores
Particulars
Opening Balance
of Asset as on
01.04.2015
Closing Balance
of Asset as on
31.03.2016
Depreciation
for FY16
Buildings 58.81 70.53 2.27
Civil 1.79 1.93 0.10
Other Civil 0.72 0.72 0.02
Plant & M/c 432.87 575.16 29.77
Line, Cable
Network
1505.59 1926.79 84.62
Vehicles 4.38 4.38 0.09
Furniture 3.90 4.23 0.19
Office
Equipment
5.18 9.56 0.39
Intangible
assets
2.17 2.16 0.01
Sub Total 2015.41 2595.45 117.46
Less: Depreciation on account of Assets created out
of Consumer contribution/grants
25.57
Net Depreciation 91.89
xliv
Commission’s analysis and decisions:
In accordance with the provisions of the KERC (Terms and Conditions for
Determination of Tariff for Distribution and Retail Sale of Electricity)
Regulations, 2006 and amendments thereon, the depreciation for FY16
has been determined by the Commission. Based on the opening and
closing balances of gross blocks of fixed assets for FY16 and the
depreciation as per audited accounts, the weighted average rate of
depreciation works out to 5.09%. Further, as per the Accounting
Standards (AS) – 12, an amount of Rs.25.57 Crores of depreciation on
assets created out of consumer contribution / grants has been factored
in and deducted from the gross depreciation for FY16.
Based on the above, the Commission decides to allow net depreciation
of Rs.91.89 Crores for FY16.
4.2.7 Capital Expenditure:
I. Capital Investment for FY16
CESC’s submission:
The CESC has indicated an actual capital expenditure of Rs.488.52
Crores as against the Commission approved capital expenditure of
Rs.317 Crores for FY16. The category-wise breakup of the expenditure
furnished by CESC is shown in the table below:
Table -4.19
Category wise capital expenditure of CESC for FY16
Amount in Rs. Crores
Sl.
No Schemes
FY16 As
approved
FY16
Actuals
1 Extension & improvement 80 75.76
2 NJY 50 247.53
3 HVDS 20 -
4 R-APDRP 50 21.23
5 RGGVY(Restructured)+DDG 0 0.66
6 Replacement of failed
Transformers 10 5.00
7 Service Connections 40 25.76
xlv
8 Rural Electrification(General) - -
A Electrification of Hamlets/HB/JC
under RGGVY
10 87.09 B
Providing infrastructure to
Irrigation Pump sets
&energization of IP SETS
C Kutir Jyothi(RGGVY)
9 Tribal Sub Plan - -
A Electrification of Tribal Colonies
(RGGVY) 3 2 B Energization of IP sets
C Kutir Jyothi (RGGVY)
10 Special Component Plan - -
A Electrification of
HB/JC/AC(RGGVY)
10 6 B Energization of IP sets
C Kutir Jyothi(RGGVY)
11 Tools & Plants 4 8.40
12 Civil Engineering Works 10 9.10
13
Providing Meters to DTC, BJ/KJ,
Street Light for replacement of
electromechanical meters,
providing modems to meters for
communication
30 0.00
Total 317.00 488.52
Commission’s analysis:
The Commission notes that, the overall capital expenditure of Rs.488.52
Crores incurred by CESC for FY16 has exceeded the approved capex of
Rs.317 Crores by Rs.171.52 Crores. Some of the major categories in which
CESC has exceeded the capex are as follows:
i. The CESC has exceeded the approved capex limit of Rs. 50 Crores in
“NJY program” by Rs.197.52 Crores. CESC in its replies to preliminary
observations, has stated that, due to field constraints like Right of
Way (RoW) and objections to lay the lines by the people, the project
that were taken up in previous years were delayed and the
expenditure was not booked during the previous years. During FY16
majority of NJY feeders have been completed and billed, resulting in
excess capex.
xlvi
ii. In respect of “HVDS” works, it is stated that CESC has not utilized the
approved capex of Rs.20 Crores, for the reason that, the ongoing
NJY works and providing individual transformers to Ganga Kalyana IP
Set works would render the same benefit as that of HVDS. Further,
CESC in its replies to preliminary observations has stated that, the NJY
Phase-I and Phase- II works cover a huge area in its jurisdiction in
which it has increased the number of distribution transformers and
also, it has installed individual DTCs for each of the Ganga Kalyana
works, and hence, the HVDS is not required to be implemented.
Though CESC has taken this stand, it is to be noted that the NJY
program or the individual DTC for Ganga Kalyana would not result in
the conversion of already existing lengthy LT lines emanating from
the 11 kV feeder both in rural loads as well as for IP Sets to HT lines.
Since the HVDS scheme is meant to reduce the HT/LT ratio, the
Commission directs CESC to take up a study of the existing
distribution lines and take suitable action to implement HVDS in order
to reduce the LT lines.
iii. In respect of “Rural Electrification (General)”, CESC has achieved a
capex of Rs.77.09 Crores, over and above the approved capex of
Rs.10 Crores. CESC in its replies to preliminary observations has
stated that, these works are related to social obligation and are
Government’s priority works and hence, CESC has incurred excess
capex for completion of these works.
iv. In respect of “Tools & Plants”, CESC has achieved a capex of Rs.8.4
Crores against the approved capex of Rs.4 Crores. CESC in its replies
to the preliminary observations made by the Commission has stated
that, three phase energy meter testing bench, PGRS software has
been procured during FY16. Further, it has stated that, some of the
T& P materials which were ordered in FY15 have been billed during
FY16 resulting in excess capex.
v. In respect of “Providing Meters to DTC, BJ/KJ, Street Light for
replacement of electromechanical meters, providing Modems to
xlvii
meters for communication”, CESC has incurred a very meager
/negligible capex of Rs.0.0019 Crore against the approved capex of
Rs.30 Crores. The Commission has been directing CESC to complete
DTC metering and conduct energy audit to quantify the distribution
losses and take remedial measures thereon. But, CESC has not
achieved its own set targets in the above category. CESC in its
replies to the preliminary observations made by the Commission has
stated that, there was a delay in tendering process due to delay in
finalization of the technical specifications, due to which it could not
achieve the progress in FY16.
In the light of the above discussion on excess capex and considering the
reasons furnished by CESC, the Commission decides to recognize the
capital expenditure of Rs.488.52 Crores incurred by CESC for APR of FY16,
subject to disallowance if any, as per the prudence check for FY16,
indicated in the following paras.
II. The prudence check of capital expenditure and material procurement
of CESC for FY16:
The Commission has got the Prudence check of capital expenditure for
FY16, done through third party verification of the capital works
categorized and also the material procurement of CESC during FY16.
This was taken up in two parts:
a) Prudence check of execution of the capital works of FY16:
b) Prudence check of material procurement process of FY16:
a) Prudence check of execution of the capital works of FY16:
The Commission has taken up prudence check of the capital
expenditure incurred by the CESC for the period FY16 by engaging the
services of M/s. Pricewaterhouse Coopers Private Limited, (M/s PWC) as
consultant, being the lowest bidder for the said job, through a
transparent process of e-tendering to evaluate the capital expenditure
incurred during FY16, in respect of categorized works.
xlviii
The Consultant has taken a list of division-wise and cost-wise total Capex
works carried out, categorized in the CESC during FY16. As per the scope
of work, the sampling technique of stratified random sampling for
finalizing the sample of projects as per KERC guidelines was taken up.
Total number of works of CESC in category of more than Rs.6 lakhs and
between Rs.3 lakhs to Rs.6 lakhs were much higher and exceeding the
maximum limit of sample size specified in the KERC guidelines. Therefore,
120 works and 50 works have been selected from each category of
projects more than Rs.6 lakhs and between Rs.3 lakhs to Rs.6 lakhs
respectively. For works costing less than Rs.3 lakhs, 24 works from 50% of
the total divisions i.e. 8 O&M divisions have been selected. Thus,
totally194 numbers of sample projects for capital expenditure to the tune
of Rs.110.96 Crore have been selected for capex prudence of CESC and
mentioned below:
Table – 4.20
Division Wise summary of sample selection
Division name
Above Rs. 6
lakhs
Between Rs.3 to 6
lakhs
Below Rs. 3
lakhs Grand total
No. Actual
cost
Rs.Lakhs
No. Actual
cost
Rs.Lakhs
No. Actual
cost
Rs.Lakhs
No. Actual cost
Rs.Lakhs
VV Mohalla 3 266 2 8 3 8 8 282
NR Mohalla 3 277 2 8 3 8 8 293
Nanjangud 20 1,955 5 27 - - 25 1,982
Hunsur 4 664 2 9 3 9 9 682
Chamrajnagar 5 50 5 26 - - 10 76
Kollegal 10 448 2 10 - - 12 458
Madikeri 13 200 4 21 - - 17 221
Hassan 17 2,469 5 62 - - 22 2,531
CR Patna 4 485 1 5 3 9 8 499
Arasikere 6 515 2 9 3 9 11 533
HN Pura 14 2,002 5 25 - - 19 2,027
Mandya 6 557 4 21 3 8 13 586
Pandavapura 9 763 4 18 - - 13 781
Nagamangala 4 75 3 15 3 9 10 99
Maddur 2 19 4 21 3 9 9 49
Total 120 10,746 50 284 24 69 194 11,099
Table – 4.21
Category wise summary of sample selection
xlix
Scheme
name
Above Rs. 6 lakhs Between Rs.3 to 6
lakhs Below Rs. 3 lakhs
No of
Works
Actual
cost
Rs.
Lakhs
No of
Works
Actual
cost
Rs.
Lakhs
No of
Works
Actual
cost
Rs.
Lakhs
GK 1 6 4 19 2 6
E&I 43 803 22 138 8 23
NJY 37 9,107 - - - -
RAPDRP 2 195 - - - -
DAS - - - - - -
HVDS - - - - - -
Civil 5 148 1 5 - -
DSM - - - - - -
RMPM 11 291 2 10 - -
UNIP 18 156 20 106 13 37
IT - - - - - -
RGGVY - - - - - -
ECW - - - - - -
Other 3 40 1 5 1 3
Total 120 10,746 50 284 24 69
The sample for site visits was broadly covered under the following types
of objectives, with sample covering each type in the O&M divisions of
CESC:
a) Works envisaged for loss reduction which included projects
related to reconductoring, replacement of feeders, replacement
of high capacity distribution transformer centers with multiple low
capacity distribution centers etc. in order to reduce the losses on
the feeder
b) Works carried out for load growth which involve creation of link
line, bifurcation of feeders, building new substation etc.
c) Works taken up for improving quality of supply, continuity of
supply and reduce interruptions, works for Voltage improvement.
d) Other projects like Energizing Unauthorized IP sets, works to
arrange power supply to Water supply installations etc.
The consultant has stated that, the analysis of sample works
performance was carried out by considering:
l
i. Planning: The planning aspect for the capital works were
measured considering the pro-activeness in the investment,
whether cost benefit analysis was carried out for the works and
whether alternatives have been considered before taking up the
work.
ii. Pro-activeness: The works have been graded as proactive or
reactive based on comprehensive review. Works have been
graded proactive when they are initiated before the supply
conditions have become adverse or if it is a part of any specific
scheme. It can be seen that 93% of the investment were
proactive in nature.
iii. Cost benefit analysis: The cost benefit analysis has been carried
out for only 24% of the total sample works. Also, in many cases the
cost benefit ratio is less than one (1) and the reason for taking up
such works was not justified by CESC in the estimates.
iv. Implementation and schedule of implementation: It is observed
that 53% of the works have no time overruns.
v. Cost of implementation: It is observed that 61% of the works have
no cost overruns.
vi. Quality of execution: The quality of construction has scored full
marks in 61% of the works.
vii. Ex-post implementation: The ex-post implementation aspect for
the capital works were measured considering the achievement
against the primary and secondary objectives.
a. Primary objective: It is observed that, that 35% of the works
have received full score.
b. Secondary objective: It is seen that 18% of the works have
received full score.
The consultant has furnished the summary of the prudence check results
as mentioned below:
li
TABLE – 4.22
Summary of Prudence check results for CESC in FY16
Work
name
Total works Sample works Non-prudent works
No. Actual
cost Rs.
Lakhs
No. Actual
cost Rs.
Lakhs
No. Actual
cost Rs.
Lakhs
GK 936 1,685 7 31 - -
E&I 11,226 10,509 73 964 1 48.59
NJY 240 25,605 37 9,107 1 250.87
RAPDRP 6 554 2 195 - -
Civil 40 998 6 153 - -
RMPM 113 1,362 13 301 - -
UNIP 3,521 7,505 51 299 - -
Other 517 763 5 48 - -
Total 16,599 48,981 194 11,099 2 299.46
As per the prudence check report submitted by the consultants, the
following are the salient features:
TABLE – 4.23
Gist of Prudence check findings for FY16
Sl No
Particulars Numbers Amount in Rs.Crores
1 Works costing Rs.6 Lakhs and above considered as samples for validation
120 107.46
2 Works costing between than Rs.6 Lakhs and Rs.3 Lakhs considered as samples
50 2.84
3 Works costing below Rs.3 Lakhs considered as samples
24 0.69
4 Works not meeting the norms of prudence
Rs.6 Lakhs and above 02 2.9946
Rs.6 Lakhs and Rs.3 Lakhs Nil -
below Rs.3 Lakhs Nil -
5 Total works not meeting the norms of prudence as stipulated in the guidelines issued by this Commission
02 2.9946
The Consultant has stated that, the following works are not meeting the
prudence norms as mentioned below:
1) NJY work costing Rs.250.87 Lakhs in CR Patna division: The work is
considered as not meeting the norms of prudence, as there were
frequent issues pertaining to puncture of Aerial Bunched cable
(AB cable). The Guarding was not provided on line crossover
points across the road. The feeders were not segregated in a safe
lii
way and there are high chances of lines coming in contact with
other lines, creating short circuit at certain crossover points. Also,
the sagging of AB cable was observed which are not within the
safety limit. There was a time overrun of more than 25 months and
cost overrun of more than 34.69% was observed in these projects.
2) E & I work costing Rs.48.59 Lakhs in Hassan division: The work is
considered as non-prudent, as it is not meeting the primary
objective to prevent electrocution of wild elephants and there
are still some poles which are below 8 m of height against 9 m
height. The transformer is still placed at the ground level which
may cause further accidents. Also, the reasons for delay in
categorization of the work beyond 9 months were not mentioned.
The summary of the other findings in the prudence check are given in
following Table:
TABLE – 4.24
Summary of Works having cost overrun
Particulars Within 10% 10-25% Above 25%
Rs.6 Lakhs and above 11 09 26
Rs.6 Lakhs and Rs.3 Lakhs 08 03 04
below Rs.3 Lakhs 06 01 02
TABLE – 4.25
Summary of Works having Time overrun
Particulars Within one Year
Between one and two Years
above 2 Years
Rs.6 Lakhs and above 24 12 10
Rs.6 Lakhs and Rs.3 Lakhs 18 03 01
below Rs.3 Lakhs 12 04 01
The Commission had forwarded the copy of the Report on the Prudence
check submitted by the consultant to the CESC seeking its
views/comments and justification if any on the non-prudent works as
meeting to norms of prudence, to reach the Commission on or before
20th March, 2017. But, CESC has not furnished any reply on this regard
within the date.
Hence, the Commission after verifying the works treated as not meeting
prudence norms as per the consultant has decided to disallow the
liii
capex and, the weighted average interest and weighted average
depreciation are disallowed as indicated below:
TABLE – 4.26
Details of Amounts disallowed in APR FY16
Sl
No Particulars
Amount
in Rs.
Crores
1 Total cost of categorized works eligible for prudence
check
489.81
2 Total cost of the sample works 110.99
3 Cost of sample works not meeting prudence norms (01
work with cost of Rs.48.59Lakh) in E& I category 0.4859
4
Cost of sample works not meeting prudence norms (01
work with cost of Rs.48.59Lakh against a sample basket of
73 works with Rs.964 Lakhs in the category of E&I works
of11226 Nos. of works and total cost of Rs.10509 Lakhs)
5.297
5 Cost of sample works not meeting prudence norms (01
work with cost of Rs.250.87Lakh)in NJY category 2.5087
6
Cost of sample works not meeting prudence norms (01
work with cost of Rs.250.87Lakh against a sample basket of
37 works with Rs.9107 Lakhs in the category of NJY works of
240 Nos. of works and total cost of Rs.25605 Lakhs)
7.053
7 The total amount of capex not meeting the norms of
Prudence (=4+6) 12.350
8
Amount to be disallowed towards works not meeting
prudence norms calculated on the basis of weighted
average interest & weighted average depreciation on the
capex to be disallowed.
1.551
Thus, the Commission decides to deduct an amount of Rs.1.551 Crores
towards disallowance of interest and depreciation on the imprudent
capital works for FY16 in the revised approved ARR for FY18 as discussed
in the subsequent Chapter of this Order.
b) Prudence check of material procurement process of FY16:
CESC is carrying out the capital works through total turnkey as well as
partial turnkey works. In some cases, the agency or the contractor
assigned with the partial turnkey would also invest in some of the smaller
materials whenever it is necessary. While procuring the materials at large
quantities, it is very essential for CESC to see that, procurement will not
liv
result into pile up of idle stock for a longer period and the procurement is
made in a prudent manner. With a view to verify the procurement process
and stock position, the Commission has instructed the consultants to
check the process in all the ESCOMs along with the prudence check of
execution of works.
M/s PwC has stated that, the process of verification procurement of major
materials included:
i. Analyzing the procurement of major materials required for capital works
for FY16 based on the opening stock, material received, utilized for
works and closing stock balances for the above years.
ii. Critical analysis including assessment of quantities in relation to the
capital works planned/executed and the closing balances to see the
extent to which materials procured are utilized for works within a
reasonable time frame.
iii. General review of the procurement process to ascertain whether, the
same is done as per the rules.
M/s. PwC’s observations on material procurement are as below:
a) CESC follows tendering process as per KTPP act and KEB account
volume.
b) The material procurement was made as average consumption over
previous 3 years and on present demand by divisions also considering
the safety stock and procurement lead time into consideration.
c) Tenders were floated for procurement of poles, conductors, insulators
and DTRs for a value of 19.63 Crore INR during FY16.
d) 80% of the budget allocated for works under service connection and
E&I were allocated as store budget for procuring required materials.
The Commission having noted the above discussions on prudence check
of execution of works as well as the material procurement of CESC:
a) Directs CESC to properly plan, execute and monitor the projects to
see that, there will not be any slippage in terms of time overrun, cost
overrun and also, the works are completed and categorized to reap
the objectives set out by the company. Also, there should not be any
lv
default, by which, the works will have to be treated as not meeting
the prudence norms.
b) Directs CESC to monitor the material procurement, deployment to the
field and track the stock position to see that, no idle stock of
materials is kept for a longer period.
4.2.8 Interest and Finance Charges:
a) Interest on Capital loan:
CESC’s Submission:
CESC in its application has claimed an amount of Rs.83.52 Crores
towards interest on capital loans drawn from Banks/Financial
Institutions for FY16.
Commission’s analysis and decisions:
The Commission has noted the status of opening and closing balances
of capital loans as per the audited accounts for FY16 and format D9 of
the filings as shown below:
TABLE – 4.27
Allowable Interest on Capital Loans – FY16 Amount in Rs. Crores
Particulars FY16
Opening balance of capital loans 671.24
Add: New Loans 188.37
Less: Repayments 65.35
Total loan at the end of the year 794.26
Average Loan 732.75
Allowable Interest on Capital Loans 83.52
As per the audited accounts of CESC for FY16, the actual interest on the
capital loans is Rs.83.52 Crores. Considering the average loan of
Rs.732.75 Crores and an amount of Rs.83.52 Crores incurred towards
interest on capital loans, the weighted average rate of interest works out
to 11.40%. The actual weighted average rate of interest is comparable
with the prevailing rate of interest for long term loans.
lvi
Thus, the Commission decides to allow an amount of Rs.83.52 Crores
towards interest on capital loans for FY16.
4.2.9 Interest on Working Capital:
CESC’s Submission:
CESC in its application has stated that it has raised short term loans
and overdrafts to meet its day to day expenditure (working
capital) during FY16. As per the audited accounts, CESC has
incurred an amount of Rs.40.40 Crores towards interest on short
term loans / overdrafts during FY16.
Commission’s analysis and decisions:
As per the audited accounts, CESC has incurred an interest of Rs.40.40
Crores on short term loans/over drafts for FY16.
As per the CESC’s replies to the Commission’s preliminary observations, it
is stated that short term loans are availed at an interest rate of 10%
to10.90% and overdraft at 10.70% during FY16. As per the Tariff Order
dated 2nd March, 2015, the Commission decides to allow the working
capital loans at a normative interest rate of 11.75% for FY16.
As per the KERC (Terms and Conditions for Determination of Tariff
Distribution and Retail Sale of Electricity) Regulations, 2006 and
amendments thereon, the Commission has computed the allowable
interest on working capital for FY16 as follows:
lvii
TABLE – 4.28
Allowable Interest on Working Capital for FY16 Amount in Rs. Crores
Particulars FY16
One-twelfth of the amount of O&M Expenses 34.47
Opening GFA 2018.26
Stores, materials and supplies 1% of Opening
balance of GFA 20.18
One-sixth of the Revenue 459.25
Total Working Capital 513.90
Rate of Interest (% p.a.) 11.75
Normative Interest on Working Capital 60.38
Actual interest on WC as per audited accounts
for FY16 40.40
Allowable Interest on Working Capital 50.39
The Commission therefore decides to allow an amount of Rs.50.39 Crores
towards interest on working capital for FY16.
4.2.10 Interest on Consumer Deposits:
CESC’s Submission:
CESC in its application as per the audited accounts has claimed
an amount of Rs.38.08 Crores towards payment of interest on
consumers’ security deposits for FY16.
Commission’s analysis and decisions:
The Commission notes that, based on the average amount of consumer
security deposits, the interest on consumer security deposits amounting
to Rs.38.07 Crores claimed by CESC works out to a weighted average
rate of interest of 8.42%. As per the KERC (Interest on Security Deposit)
Regulations, 2005, the interest on consumer deposits shall be allowed as
per the bank rate prevailing on the 1st of April of the relevant year. The
bank rate as on 1st April, 2015 was 8.50%. The weighted average rate of
interest claimed by CESC as per the audited accounts is within the
applicable bank rate.
Thus, the Commission decides to allow an amount of Rs.38.08 Crores
towards interest on consumer security deposits for FY16.
lviii
4.2.11 Other Interest and Finance charges:
CESC has claimed an amount of Rs.0.47 Crores towards other interest
and finance charges for FY16, paid to banks / financial institutions. The
Commission decides to allow the same for FY16.
4.2.12 Interest on belated payment of Power Purchase Cost:
CESC has claimed an amount of Rs.7.05 Crores towards Interest on
belated payment of Power Purchase Cost for FY16. As per the audited
accounts, an amount of Rs.7.05 Crores is indicated as interest on power
purchase dues. The Commission has been consistently allowing the
interest on working capital as per the norms under MYT Regulations to
meet the day to day expenses of the ESCOMs. Hence, there is no
justification for claiming interest on power purchase dues separately.
Hence, the Commission decides not to allow any interest on power
purchase dues in the APR for FY16.
4.2.13 Capitalization of Interest and finance charges:
CESC in its filing and as per the audited accounts for FY16 has
capitalized interest of Rs.19.22 Crores during FY16. The Commission has
considered the same for computation of APR for FY16.
Thus the allowable interest and finance charges for FY16 are as follows:
TABLE – 4.29
Allowable Interest and Finance Charges
Amount in Rs. Crores
Sl.
No. Particulars FY16
1. Interest on Loan capital 83.52
2. Interest on working capital 50.39
3. Interest on consumer deposits 38.08
4. Interest on Power Purchase dues 0.00
5. Other interest and finance charges 0.47
6. Less Interest and other finance charges
capitalized
19.22
Total interest and finance charges 153.24
lix
4.2.14 Other Debits:
CESC’s Submission:
CESC has claimed an amount of Rs.4.79 Crores towards other
debits for FY16.
Commission’s analysis and decisions:
As per the audited accounts, the allowable other debits excluding the
provision for bad and doubtful debts for FY16 are as detailed below:
TABLE – 4.30
Allowable Other Debits Amount in Rs. Crores
Sl.
No. Particulars FY16
1 Small and Low value items written off 0.11
2 Losses relating to fixed assets 0.39
3 Assets decommissioning cost 0.78
4 Miscellaneous losses and write offs 1.14
5 Bad debts written off excluding
provisions 0.64
Total 3.06
Thus, the Commission decides to consider an amount of Rs.3.06 Crores
as other debits for FY16.
4.2.15 Net Prior Period Charges:
CESC’s Submission:
CESC has claimed the net Prior Period credit of Rs.5.89 Crores for
FY16.
Commission’s analysis and decisions:
As per the Audited Accounts for FY16, the prior period expenses/ loss are
indicated as Rs.23.86 Crores on account of short provision of power
purchase cost, A&G expenses, interest and finance charges and other
expenses of the previous years. Further the prior period income of
Rs.29.75 Crores is on account of excess provision of depreciation, interest
& finance charges and others relating to prior period.
lx
Thus, the Commission decides to allow a net prior period income (credit)
of Rs.5.89 Crores for FY16.
4.2.16 Return on Equity:
CESC’s Submission:
CESC has not claimed Return on Equity for FY16 as its accounts
depict a negative net worth.
Commission’s analysis and decisions:
The closing balances of gross fixed assets along with break-up of equity
and loan component and the details of GFA, debt and equity (net-
worth) for FY16 as per actual data as per the audited accounts are
indicated as follows:
TABLE – 4.31
Status of Debt Equity Ratio for FY16
Amount in Rs. Crores
GFA
(Closing
Balance)
Debt
(Closing
Balance)
Equity
(Net-
worth)
(Closing
Balance)
Normati
ve Debt
@ 70% of
GFA
Normati
ve
Equity @
30% of
GFA
%age of
actual
debt on
GFA
%age of
actual
equity on
GFA
2598.32 794.26 -111.70 1818.82 779.52 30.57 0
From the above table it is evident that the debt and equity amounts lie
within the normative debt and equity ratio amounts reckoned on the
basis of the closing balances of GFA for FY16.
As per the KERC (Terms and Conditions for Determination of Tariff)
Regulations, 2006 and amendments thereon, the Commission has
computed the allowable Return on Equity at 15.5% on equity plus the
accumulated balance of profit/loss as per audited accounts as at the
beginning of the year and also factoring recapitalization of security
deposit of Rs.23.00 Crores in compliance with the Orders of the Hon’ble
ATE in appeal No.46/2014. The allowable RoE for FY16 is determined as
follows:
As per the KERC (Terms and Conditions for Determination of Distribution
and Retail Sale of Electricity) Regulations, 2006 and amendments
lxi
thereon, the Commission has computed the allowable Return on Equity
at 15.5% on equity plus accumulated profits/ losses under reserves and
surplus, as at the beginning of the year and also factoring
recapitalization of security deposit of Rs.23.00 Crores in compliance with
the Orders of the Hon’ble ATE in appeal No.46/2014. The allowable RoE
for FY16 is determined as follows:
TABLE – 4.32
Allowable Return on Equity
Amount in Rs. Crores
Particulars FY16
Paid Up Share Capital 325.52
Share deposit 69.32
Reserves and Surplus as on 01.04.2015 (642.19)
Recapitalization of Consumers’ security
deposit (23.00)
Total Equity (270.35)
Allowable RoE @ 15.50% 0.00
Further, it is noted that as reported by CESC and as per the audited
accounts, an additional equity of Rs.127.73 Crores has been received
during the year from Government of Karnataka. Even with this additional
equity infused during FY16, the net worth remains negative and hence,
the Commission is unable to allow any return on equity for FY16.
4.2.17 Income tax:
As per the audited accounts, CESC has factored Rs.14.97 Crores towards
payment of deferred Income Tax liability for FY16. The Commission decides to
allow the same in the APR for FY16.
4.2.18 Other Income:
CESC’s Submission:
CESC in its application has claimed an amount of Rs.105.08 Crores as
Other Income for FY16.
Commission’s analysis and decisions:
As per the audited accounts of CESC, Rs.215.23 Crores is indicated as
other income for FY16. This includes income from sale of scrap, income
lxii
from rent, rebate for collection of electricity duty, delayed payment
charges from consumers, income relating to prior period, depreciation
withdrawn from contribution/grants as per accounting standards - 12
and miscellaneous recoveries. The delayed payment charges from
consumers amounting to Rs.80.40 Crores, included under other income,
is considered as revenue and an amount of Rs.29.75 Crores of income
relating to prior period is factored and accounted under the head ‘prior
period debit/credit’ and an amount of Rs.25.57 Crores depreciation
withdrawn from contribution and grants as per Accounting Standards-12
is factored under depreciation head. Also an amount of Rs.13.61 Crores
pertaining to incentive received for early payment of power purchase
bills is considered as other income. Further, as decided in the earlier Tariff
Orders, to encourage and bring in financial discipline in timely payment
of monthly power purchase bills, the Commission continues to allow10%
of the total incentive amounting to Rs.1.36 Crores on account of early
payment of power purchase bills, to be retained by CESC for FY16.
Thus, the Commission decides to allow an amount of Rs.78.15 Crores as
other income for FY16.
4.2.19 Fund towards Consumer Relations / Consumer Education:
The Commission has been allowing an amount of Rs.0.50 Crore per year
towards consumer relations / consumer education. CESC in its filing has not
claimed any expenditure for FY16. Hence, the Commission has not considered
any expenditure towards Consumer Relations / Consumer Education for FY16.
4.2.20 Carrying Cost on Regulatory Asset:
CESC in its application has not claimed any amount of carrying cost on the
Regulatory Assets kept by the Commission in its Tariff Orders. The
Commission in its Tariff Order dated 12.05.2014 had kept the unmet gap in
revenue of Rs.131.60 Crores as Regulatory asset to be recovered in FY16 and
FY17 and also decided to allow carrying cost at 12% per annum on the
Regulatory Asset to be assessed at the time of APR of FY16 and FY17.
Accordingly, the Commission had factored Rs.65.80 Crores being the 50% of
Regulatory Asset in the ARR of FY16 and allowed it to be recovered in the
revised retail supply tariff.
lxiii
The Commission, while Computing the revised ARR as per APR of CESC for
FY16, decides to allow the Carrying cost of Rs.7.90 Crores at 12% per annum
on the Regulatory Asset of 65.80 Crores pertaining to FY16.
4.2.21 Revenue for FY16:
CESC, in its application has considered Rs.2856.23 Crores as revenue from
sale of power from consumers and miscellaneous charges for FY16.
As per the audited accounts for FY16, the revenue from sale of power is Rs.
2775.83 Crores. However, as discussed earlier, the sale to IP sets is reckoned
at 2077.97 MU instead of 2306.85 MU, a reduction of 228.88 MU. Based on the
approved CDT of Rs.4.40 per unit, revenue of Rs.100.72 Crs is deducted from
revenue from sale to IP Sets.
Further, the delayed payment charges from consumers of Rs.80.40 Crores
included under other income has been recognized as revenue from sale of
power.
Accordingly, the Commission decides to consider Rs.2755.51 Crores as
revenue from sale of power to consumers and Miscellaneous Revenue while
approving the revised ARR as per APR of CESC for FY16.
4.2.22 Revenue and Subsidy for FY16:
The Commission in its tariff order dated 2nd March, 2016 has approved
tariff subsidy of Rs. 1174.65 Crores towards sale of power to BJ/KJ and IP
sets for FY16 in accordance with the prevailing Government order. The
Commission in computation of APR for FY16 has approved the revised
tariff subsidy of Rs.941.06 Crores towards sale of power to BJ/KJ and IP
sets for FY16.
4.3 Abstract of Approved ARR for FY16:
As per the above item-wise decisions of the Commission, the
consolidated Statement of revised ARR for FY16 is as follows:
lxiv
TABLE – 4.33
Approved revised ARR for FY16 as per APR
Amount in Rs. Crores
Sl.
No Particulars
APR FY16
As
approved
02.03.2015
As filed
30.11.2016
As per
APR
1 Energy at Gen Bus 6984.51 6444.86 6444.86
2 Transmission Losses in % 3.80% 2.93% 2.93%
3 Energy @ Interface in MU 6719.10 6256.07 6256.07
4 Distribution Losses in % 14.50% 13.60% 17.26%
Sales in MU
5 Sales to other than IP & BJ/KJ 3084.08 3060.25 3060.24
6 Sales to BJ/KJ 36.28 38.13 38.13
7 Sales to IP 2624.47 2306.85 2077.97
8 Total Sales 5744.83 5405.23 5176.34
9 Revenue from tariff in Rs Crs
10 Revenue from tariff and
Misc. Charges 1844.64 1814.45 1814.45
11 Tariff Subsidy to BJ/KJ 19.09 23.82 23.82
12 Tariff Subsidy to IP 1155.56 1017.96 917.24
13 Total Revenue 3019.29 2856.23 2755.51
Expenditure in Rs Crs
14 Power Purchase Cost 2062.88 2410.17 2410.17
15 Transmission charges of
KPTCL 303.02 305.42 305.42
16 SLDC Charges 3.25 2.16 2.16
17 Power Purchase Cost
including transmission
charges 2369.15 2717.75 2717.75
18 Employee Cost 327.65
19 Repairs & Maintenance 39.24
20 Admin & General Expenses 51.58
Total O&M Expenses 409.15 418.47 413.58
21 Depreciation 74.98 117.46 91.89
Interest & Finance charges
22 Interest on Loans 83.84 83.52 83.52
23 Interest on Working capital 63.66 40.40 50.39
24 Interest on belated payment
on PP Cost 0.00 7.05 0.00
25 Interest on consumer
deposits 40.22 38.07 38.08
26 Other Interest & Finance
charges 1.72 0.47 0.47
27 Less interest capitalised 15.00 19.22 19.22
Total Interest & Finance
charges 174.44 150.29 153.24
28 Other Debits 0.00 4.79 3.06
29 Net Prior Period Debit/Credit 0.00 -5.89 -5.89
lxv
30 RoE 0.00 0.00 0.00
31 Provision for taxation 0.00 14.97 14.97
32 Funds towards Consumer
Relations/Consumer
Education 0.50 0.00 0.00
33 Other Income 30.00 105.08 78.15
ARR 2998.22 3312.76 3310.45
Deficit 21.07 -456.53 -554.94
34 Deficit for FY14 carried
forward 10.69 0.00 0.00
35 Disallowance of capex on
account of prudence check 0.80 0.00 0.00
36 Carrying cost on Regulatory
asset as per TO dated
02.03.2015 131.60 0.00 7.90
37 Regulatory asset carried
forward 120.41 0.00 0.00
38 Penalty for excess losses
beyond target loss levels 70.11
Net ARR 3019.29 3312.76 3248.24
Deficit for FY16 0.00 -456.53 -492.73
4.3.1 Gap in Revenue for FY16:
As against an approved ARR of Rs.3019.29 Crores, the Commission, after
the Annual Performance Review of CESC, decides to allow a revised
ARR of Rs.3248.24 Crores for FY16. Considering the revenue of Rs.2755.51
Crores, the deficit in revenue, of Rs.492.73 Crores is determined for the
year FY16.
The Commission decides to carry forward the deficit of Rs.492.73 Crores
of FY16 to the proposed ARR for FY18, as discussed in the subsequent
Chapter of this Order.
lxvi
CHAPTER – 5
REVISED ANNUAL REVENUE REQUIREMENT FOR FY18
5.0 Revised Annual Revenue Requirement (ARR) for FY18
CESC’s Application:
CESC in its application dated 30th November, 2016, has sought approval
of the Commission for the revised ARR for FY18. The summary of the
proposed revised ARR for FY18 is as follows:
TABLE – 5.1
Revised ARR for FY18-CESC’s Submission
Amount in Rs. Crores
Sl.
No. Particulars FY18
1 Energy at Gen Bus in MU 7739.23
2 Transmission Losses in % 3.37%
3 Energy at Interface in MU 7478.41
4 Distribution Losses in % 13.00%
Sales in MU
5 Sales to other than IP & BJ/KJ 3499.12
6 Sales to BJ/KJ 38.45
7 Sales to IP 2968.65
Total Sales 6506.22
Revenue from tariff, in Rs. Crores
8 Revenue from Tariff and Misc. Charges 2205.86
9 Tariff Subsidy from BJ/KJ 21.80
10 Tariff Subsidy from IP 1457.84
Total Revenue 3685.50
Expenditure in Rs. Crores
11 Power Purchase Cost 2648.63
12 Transmission charges of KPTCL 332.24
13 SLDC Charges 2.70
14 Power Purchase Cost including cost of transmission 2983.57
15 Employee Cost 394.71
16 Repairs & Maintenance 47.28
17 Administration & General Expenses 62.14
18 Total O&M Expenses 504.13
19 Depreciation 191.01
Interest & Finance charges
21 Interest on Loans 186.57
22 Interest on Working capital 68.95
23 Interest on belated payment on PP Cost 0.00
24 Interest on consumer security deposits 41.70
25 Other Interest & Finance charges 0.52
26 Less: interest & other expenses capitalised 24.00
lxvii
Total Interest & Finance charges
28 Other Debits 6.79
29 Net Prior Period Debit/Credit 2.00
30 Return on Equity 0.00
31 Funds towards Consumer Relations/Consumer Education 0.00
32 Provision for contribution to P&G Trust (GoK Liability) 346.50
33 Other Income 115.86
34 ARR 4191.88
35 Deficit for FY16 carried forward -456.54
Net ARR 4648.42
The CESC has requested the Commission to approve the revised Annual
Revenue Requirement of Rs.4648.42 Crores for FY18. Considering the
estimated revenue of Rs.3685.50 Crores based on the existing retail
supply tariff, CESC has projected a revenue gap of Rs.962.92 Crores
inclusive of carried forward gap of revenue of Rs.456.54 Crores of FY16. In
order to bridge this gap in revenue, CESC, in its application has
proposed increase in retail supply tariff by 148 paise per unit in respect of
all the categories of consumers including BJ/KJ and IP set consumers for
FY18.
5.1 Annual Performance Review for FY16:
As discussed in the preceding chapter of this Order, the Commission has
carried out the Annual Performance Review for FY16 based on the
audited accounts furnished by CESC. Accordingly, a deficit of Rs.492.73
Crores of FY16 is carried forward into the ARR of FY18.
5.2 Revised Annual Revenue Requirement for FY18:
The item wise expenditure proposed by CESC and approved by the
Commission for FY18 is discussed in this Chapter as follows:
5.2.1 Capital Investments for FY18:
CESC’s Submission:
CESC has proposed a revised capex of Rs.889 Crores as against the
capex of Rs.552 Crores approved in the MYT Order, being the amount
factored for tariff computations. The Commission, while recognizing a
capex of Rs.697 Crores for FY18, as proposed by CESC, had factored
Rs.552 Crores, for the tariff computations, keeping in view the debt
equity ratio of 70:30 for financing the capex, as per the MYT Order.
lxviii
The CESC has now proposed to execute the following capital works
during FY18:
i) Extension and Improvement (E&I) Works: The CESC proposes to add
1500 additional distribution transformers, 500 distribution transformers
of different capacities for capacity enhancement works and
construction of new link lines with associated LT lines for evacuation
of power from the new substations of KPTCL coming up during FY18.
Also, the CESC has planned to replace maximum number of existing
7.5/8.0 M poles by 9.0 M poles in the elephant corridor in its
jurisdiction.
ii) Niranthara Jyothi Yojana (NJY): CESC has planned to complete the
spill over/on-going works of phase-1& 2 schemes during FY18.
iii) Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) &
Decentralized Distributed Generation (DDG) : CESC has submitted
that the electrification of BPL households under RGGVY 12th Plan of
Mysuru and Mandya districts have been awarded already and, for
electrification of households in non-conventional method under DDG
project, the work award has been issued and work is in progress.
iv) Integrated Power Development Scheme (IPDS): The CESC has
submitted that, 33 towns are included under this scheme. The
proposed cost, as per the DPR, is Rs.170.00 Crores. As per the
guidelines for execution of IPDS, the work has to be awarded within
one month from the date of approval from GoI and CESC has stated
that the tendering work is in process.
v) Deen Dayal Upadyay Grameena Jyothi Yojana (DDUGJY): CESC has
stated that, the Improvement works will be taken up in rural areas of
five districts in CESC jurisdiction and the tendering is in process.
vi) Metering programme: As per the information provided under UDAY
Scheme, there are around 28,233 DTCs to be metered in Next two
years. CESC has proposed to provide 1200 meters to DTCs under
Thread through metering, 950 meters under IPDS and 19222 meters
under DDUGJY projects for which budget provision has been made
lxix
under respective scheme heads. Remaining 6857 DTCs are proposed
to be metered under E&I during FY18.
vii) Software development: It is proposed to implement computerization
and develop software in Finance, Material Management and HRMS
areas under UDAY scheme. Work amounting Rs.9.96 Crores has been
awarded for development of software in Material Management and
60 % of work is completed. Proposal is to be submitted for Finance,
HRMS and other software development for Rs.25 Crores.
The scheme-wise proposed capex of CESC for FY18 as per the
actions plan mentioned above is shown in the following table:
Table –5.2
Capital expenditure for FY18-CESC’s Submission Amount in Rs.
Crores
Sl.
No Schemes
As Approved
in MYT Order
As proposed by
CESC in the present
filing
1 Extension & improvement 230 320
2 NJY 40 40
3 HVDS
4 R-APDRP 25 25
5 IPDS 50 100
6 DDUGJY 100 150
7 RGGVY(Restructured)+DDG - 45
8 Replacement of failed Transformers 5 5
9 Service Connections 40 50
10 Rural Electrification(General)
A Electrification of Hamlets/HB/JC under
RGGVY
34 50 B
Providing infrastructure to Irrigation
Pump sets & energization of IP SETS
C Kutir Jyothi(RGGVY)
11 Tribal Sub Plan
A Electrification of Tribal Colonies
(RGGVY) 2 3
B Energisation of IP sets
C Kutir Jyothi (RGGVY)
12 Special Component Plan
A Electrification of HB/JC/AC(RGGVY)
7 10 B Energisation of IP sets
C Kutir Jyothi(RGGVY)
13 Tools & Plants 4 4
14 Civil Engineering Works 5 12
15
Providing Meters to DTC, BJ/KJ, Street
Light for replacement of electro-
mechanical meters, providing modems
10 40
lxx
to meters for communication
16 Software Development and smart grid
project - 35
Total 552 889
Commission’s analysis and decision:
The CESC has proposed a total capex of Rs.889 Crores indicating an
additional capex of Rs.337 Crores over and above the approved
capex of Rs.552 Crores as per MYT order for FY18, which was
considered for tariff computation. CESC has indicated the
requirement of additional capex in respect of certain categories duly
giving the action plan as discussed above, and it has retained the
outlay for the other categories of capex for FY18. The additional
capex sought by CESC in some of the major categories of works is
shown below:
The category of works for which additional Capex is sought by CESC
for FY18:
TABLE-5.3
Additional Capex Sought by CESC
Amount in Rs. Crores
Sl.
No. Schemes
As approved
in MYT Order
CESC
Proposal
Additional
CAPEX
1 Extension & improvement 230 320 90
2 IPDS 50 100 50
3 DDUGJY 100 150 50
4 RGGVY(Restructured)+DDG 0 45 45
5
Electrification of
Hamlets/HB/JC under
RGGVY 34
50
16
Providing infrastructure to
Irrigation Pump sets &
energization of IP SETS
Kutir Jyothi (RGGVY)
6
Providing Meters to DTC,
BJ/KJ, Street Light for
replacement of
electromechanical meters,
providing modems to meters
for communication
10 40 30
7 Software Development and
smart grid project 0 35 35
Total 424 740 316
It is noted that, CESC is seeking additional capex in respect of major
categories of works mentioned in the above table at Rs.740 Crores as
lxxi
against the approved capex of Rs.424 Crores in MYT filing which
amounts to an excess capex of Rs.316 Crores.
However, looking at the performance of CESC for the past five years
vis-à-vis the approved capex, it is to be noted that, CESC has not
achieved its capex even closer to Rs. 500 Crores in any of the years
right from FY12 except during FY16 and it is unlikely that, CESC would
be able to achieve a capex of Rs.889 Cores in FY18. The details of the
capex achieved for the past five years are shown in the following
table:
TABLE – 5.4
Approved Vs. Actual capital investment
Amount in Rs. Crores
F
rom the above it could be seen that, CESC has not been able to
achieve a capital expenditure more than 70% of the approved
capex. in the past years, except in FY16, wherein it has exceeded
the approved capex of Rs.317 Crores. The CESC has clarified in the
replies to the preliminary observation that, the excess capex
achievement in FY16, is due to the spill over/on-going works of NJY
which were not commissioned in the previous years due to RoW /
litigations and have been completed and commissioned during
FY16. If the amount of capex incurred for FY16 on NJY is taken out of
the total capex of Rs.488.52 Crores, the remaining capex would not
be more than Rs.300 Crores for FY16. Keeping in view the reasons for
excess capex during FY16 as well as a very low capex achievement
indicated by CESC during FY17 till September, 2016 at Rs.111.53
Crores, the Commission is of the view that, it is unlikely that CESC
would incur such a huge capex of Rs.889 Crores in FY18.
Particulars FY12 FY13 FY14 FY15 FY16
Capital Investment
Proposed &
Approved
485 560 575.5 455 317
Capital Investment
actually incurred 183.27 195.87 321.75 318.83 488.52
Short fall (-)/ Excess
outlay -301.73 -364.13 -253.75 -136.17 171.52
% Achievement 37.79% 34.98% 55.91% 70.07% 154.10%
lxxii
Further, it is noted that, though CESC has indicated the action plan
for FY18 by giving reasons for additional capex and furnished extract
of DPR/Estimates pertaining to eight projects stated to be prepared
complying to the “Capital Expenditure Guidelines for ESCOMs”, they
do not indicate the objectives and quantifiable outcomes of the
projects. The CESC should mandatorily follow the “Capital
Expenditure Guidelines for ESCOMs” in which the capital investment
planning process, prioritization and post commissioning analysis to be
adopted by the ESCOMs are discussed in detail, so as to address:
a) the network strengthening and expansion requirement,
b) Improvement of power supply reliability,
c) The target date for each of the project,
d) loss reduction trajectory etc.
The Commission notes that, CESC has submitted the details of 11kV
feeder’s losses in the descending order during earlier review
meetings, but, it has not mentioned whether, the E&I work taken up
by it are addressing the issue of reduction of distribution losses in the
high loss making feeders, which are listed by it.
In light of the above discussions and taking into consideration the
capex achievement during the past five years and the reasons for
excess capex during FY16 and also, a very low capex achievement
till September, 2016 during FY17, the Commission decides that, it is
unlikely for CESC to achieve the capex as proposed. Further, the
Commission, while recognizing the capex proposed by CESC at
Rs.889 Crores, decides to consider the capital expenditure of Rs.552
Crores for the purpose of tariff calculations for FY18 which is subject to
prudence check. The Commission directs CESC that, it should meet
any additional capex required during FY18, only through re-
appropriation of approved amounts for the prioritized category within
the overall capex and not to seek the approval of the Commission in
the middle of the year for additional/higher capex.
lxxiii
5.2.2 Sales:
a) Sales other than IP sets:
CESC in its Tariff Application has stated that for estimating sales for FY-
17 and FY18, it has considered three years or five year CAGR. The
Commission has observed that the CAGR (which is annual growth
rate) has been applied for the half-year data of FY-17 for estimating
the sales for second half of FY17, which is not appropriate, as CAGR
stands for compounded annual growth rate and has to be applied
for annual data and not on half-year data. For the current year,
where the half-year data is available, the estimate could be done on
pro-rata basis by considering the actual sales up to 30.09.2016 and
estimating the sales for the remaining period based on the growth
rate of the previous year for the corresponding period.
The observations of the Commission on sales forecast for the FY18
and the replies furnished by CESC are discussed below:
i) LT(1) – BJ/KJ category:
While the number of installations in this category has been reduced
from 497094 installations in FY16 to 496020 in FY18, the sales has
increased from102.75 MU to 118.52 MU. Further, though the number
of installations for FY18 is retained at FY17 level, the allocation
between installations consuming less than 18 units and above 18 units
have been altered in FY18. CESC shall explain the reasons for the
same. Further the number of installations is indicated as 496020 at
pg.12 and as 496780 at pg. 22. The figures shall be reconciled.
CESC in its replies has stated that the number of installations under
BJ/KJ installations consuming less than 18 units is decreasing since
FY13 and those under BJ/KJ consuming more than 18 units are
increasing, resulting in alteration in the allocation between BJ/KJ
consuming less than 18 units and those consuming more than 18
units.
Further CESC in its replies to the preliminary observations had clarified
that the number of installations indicated at page 22 is for FY16 and
lxxiv
that the figures indicated in page-12 is for FY17 and FY18.
Subsequently. In its replies to the rejoinder, CESC has clarified that
number of installations indicated at page 22 is for first half of FY17.
The Commission has taken note of the replies furnished by CESC. The
approach of the Commission in estimating the sales to different
category of consumers is discussed in the subsequent paragraphs.
ii) Number of Installations:
Regarding the number of installations, the Commission had observed
that, the growth rate considered for HT3 and HT4 categories is on the
higher side when compared to the normal growth rate indicated
and the growth rate considered for LT-2b and HT-1 categories is on
the lower side when compared to the normal growth rate indicated.
Further, the Commission regarding the energy sales, had observed
that the estimated growth rates for HT-2a, HT-2b and HT-4 categories
is higher considering the recent trends in growth rate for these
categories.
CESC, in its response to the preliminary observations did not furnish
any reply on the above observations. Since the above issue was
again raised in the rejoinder by the Commission, in its replies to the
rejoinder, CESC has stated that it has furnished the details of
estimation in its application for ERC and Revision of tariff for FY18 and
has reiterated the same.
iii) Category-wise information in the specified format was
requested to validate the sales and the CESC has furnished the detail
in its replies to the preliminary observations.
iv) To validate the sales estimate, the CESC was requested to
furnish the following information:
lxxv
a) The data of sales to HT2(a) and HT2(b) categories along with the
consumption from open access / wheeling for the period 2011-12 to
2015-16 in the in the specified format.
b) To estimate the impact of shifting of installations from HT2a, HT2b
and HT-4 to HT-2c category, the number of installations shifted from
these categories and the corresponding sales figures for FY14, FY15
and FY16.
CESC in their replies to the preliminary observations has furnished the
above details.
The Commission’s approach for estimating the number of installations
and sales for FY18:
The methodology adopted by the Commission to estimate the number
of installations and sales to categories other than BJ/KJ and IP sets is
discussed below:
i) No. of Installations:
While estimating the number of installations (excluding BJ/KJ and IP),
the following approach is adopted:
a. The base year number of installations for FY17 is modified duly
validating the revised estimate furnished by CESC in the current
filing and the data available as on 30.11.2016. The Commission
has validated both the number of installations and sales to various
categories considering the actuals as on 30.11.2016 and has
estimated the number of installations and sales for the remaining
period reasonably, keeping in view the number of installations
and sales as on 31.03.2016 also. Accordingly, the base year
estimation has been revised which has an impact on the
estimated number of installations and estimated sales for the year
FY18.
b. Wherever the number of installations estimated by CESC for the
FY18 is within the range of the estimates based on the CAGR for
lxxvi
the period FY11 – FY16 and for the period FY13 - FY16, the
estimates of CESC are retained.
c. Wherever the number of installations estimated by CESC for the
FY18 is lower than the estimates based on the CAGRs for the
period FY11 – FY16 and for the period FY13 - FY16, the estimates
based on the lower of the CAGRs are considered.
d. Wherever the number of installations estimated by CESC for FY18
is higher than the estimates based on the CAGRs for the period
FY11 – FY16 and for the period FY13 - FY16, the estimates based on
the higher of the CAGRs are considered.
e. For LT 4(b), 4(c), LT-7, HT-2(c), HT (4) and HT-5 categories, the
estimates of CESC are retained, as the growth rate for these
categories is not consistent.
Based on the above approach, the total number of installations
(excluding BJ/KJ and IP) estimated by the Commission for FY18 is
2218006 as against 2221966 proposed by CESC.
[
ii) Energy Sales:
For categories other than BJ/KJ and IP sets, generally the sales are
estimated considering the following approach:
a. The base year sales for FY17 as estimated by CESC are validated
duly considering the actual sales upto November, 2016 and
modified suitably as stated earlier.
b. Wherever the sales estimated by CESC for the FY18 is within the
range of the estimates based on the CAGR for the period FY11 –
FY16 and for the period FY13 - FY16, the estimates of CESC are
retained.
c. Wherever the sales estimated by CESC for the FY18 is lower than
the estimates based on the CAGRs for the period FY11 – FY16 and
for the period FY13- FY16, the estimates based on the lower of the
CAGRs are considered.
lxxvii
d. Wherever sales estimated by CESC for the FY18 is higher than the
estimates based on the CAGRs for the period FY11 – FY16 and for
the period FY13 - FY16, the estimates based on the higher of the
CAGRs are considered.
e. For LT4(b), LT 4(c), LT-7, HT-2(c) and HT-5 categories, the estimates
of CESC are retained, as the growth rate for these categories is
not consistent.
f. For HT-4 category, the sales are estimated based on the specific
consumption of FY16.
g. For HT2(a) and HT2(b) categories, the sales estimate based on the
methodology specified at paras b, c and d above are
reasonable and is adopted. Therefore, the sales estimate based
on the analysis of open access impact is not considered for FY18.
Based on the above approach, the sales (excluding BJ/KJ and IP)
estimated by the Commission for FY18 is 3368.54 MU, as against
3419.05 MU proposed by CESC.
b) Sales to BJ/KJ
The electricity consumption to this category upto 18 units per
installation per month hitherto was being subsidized by the
Government of Karnataka and any installation under this
category consuming more than 18 units per month was billed
under relevant LT 2(a) category. However, the Government of
Karnataka in its Budget for 2017-18 has announced that it would
extend the subsidy to BJ/KJ installations consuming upto 40 units
per installation per month. Therefore, the Commission has
reckoned the above and has worked out the subsidy
accordingly.
Considering the specific consumption and the number of
installations, for FY16, for installations consuming upto 18 units and
above 18 units as per the actual data furnished by CESC, the total
sales estimated for this category for FY18 works out to 106.17 MU.
Considering the total number of BJ/KJ installations of 496020 for
lxxviii
FY18 as proposed by CESC, the specific consumption works out to
17.84 units per installation per month which is less than 40 units per
installation per month announced by the Government for the
purpose of subsidy. Thus, the entire consumption of 106.17 MU is
considered for the purpose of estimating the subsidy for this
category. However, the CESC while claiming the subsidy shall
consider only such installations which consume upto 40 units per
installation per month and any installation under this category
consuming more than 40 units shall be billed under the relevant LT
2(a) category.
c) IP set sales projections for ARR for FY18
The Commission, in its Tariff Order dated 30th March, 2016, had
approved a specific consumption of IP-sets as 7,843
units/installation/ annum for the control period FY17 to FY19.
However, based on the actual data of sales to IP-sets as reported
by the CESC in its Tariff filing, the Commission had approved the
specific consumption as 8,195 units/installation/annum, for the
FY16.
Further, the IP-sales reported as per the format D2 of its Tariff filing
by the CESC was 2,306.87 MU as against the approved sales
quantity of 2,624.47 MU, for FY16. However, the CESC in its
subsequent communication dated 30th January, 2017, to the
Commission, has submitted the revised sales of IP-sets based on
the specific consumption arrived at from the meter readings of
segregated agricultural feeders as 2,077.97 MU, for FY16. This
indicates a decrease in sales to an extent of 228.9 MU between
the IP consumption reported by the CESC in its Tariff filing and its
subsequent submission on the basis of metered consumption in
respect of the segregated agricultural feeders, under NJY. Also, it
is noted that the CESC has already segregated significant number
of feeders under NJY as exclusive agricultural feeders and rural
feeders, which means that regulated power supply to IP-sets has
lxxix
contributed to reduction in the agricultural consumption during
the FY16.
It is noted that during FY15, the CESC’s specific consumption
arrived at on the basis of metered consumption in respect of
agricultural feeders was 7,843 units/installation/annum. It is
observed that the specific consumption of 7,843
units/installation/annum for FY15 is less than the approved specific
consumption of 8,195 units / installation /annum for FY16 by 352
units /installation/annum. Further, the specific consumption
worked out on the basis of the revised consumption of 2,077.97
MU for FY 16 as reported by the CESC is 6,728
units/installation/annum. Further, it is noted that the specific
consumption arrived at considering the revised consumption
based on the segregated agricultural feeders for FY16 is far less
than the approved specific consumption of 8,195 units/
installation/annum, by 1467 units/installation/annum. Hence, it is
appropriate to consider the specific consumption of 6,728 units/
installation/annum for the FY18 also. In view of this, the
Commission decides to approve the specific consumption of
6,728 units/installation/ annum for the ARR of FY18.
Further, it is noted that the CESC has estimated the number of IP-
set installations as 3,69,402 for the FY18 in the current Tariff filing. In
view of this, the Commission has considered the number of IP-sets
as reported by the CESC, for the ARR of FY18 without any
modifications. Hence, based on the estimated number of
installations for the FY17 and the FY18 as reported by the CESC,
the mid-year number of installations is determined and the sales
to IP-set consumers are indicated as follows:
TABLE-5.5
Computation of IP Set Consumption
lxxx
Accordingly, the Commission approves 2,386.77 MU as energy
sales to IP-sets as against the CESC’s sales projections of 2,968.65
MU, for the FY18. The number of installations approved for FY18 is
3,69,402. This approved IP-set consumption for FY18 is with the
assumption that the Government of Karnataka would release full
subsidy to cover the approved quantum of IP-sales. However, if
there is any reduction in the subsidy allocation by the GoK, the
quantum of sales to IP-sets of 10 HP and below shall be
proportionately regulated.
During the course of Public hearing held by the Commission, the
representatives of certain Farmers’ Association have suggested
that the Government may consider paying the subsidy directly to
the farmers against their IP Set consumption. They have also
expressed that meters could be installed to their IP Sets, by the
ESCOMs to whom energy charges would be paid by the farmers.
The Commission is of the view that implementing the suggestion of
direct remittance of subsidy to the farmers would encourage
metering of the IP Sets enabling proper accounting of energy and
also facilitate accurate computation of losses in the distribution
system. The Commission notes that the Government of Karnataka
would have to formulate suitable policy in the matter.
Further, the CESC was directed to take up GPS survey of IP-sets in
order to identify the defunct/dried up/not-in-use installations in
the field and to take further action to arrive at correct number of
IP-sets, by deducting such IP-sets from its account, on the basis of
GPS survey report. In this regard, the CESC has reported that it has
completed GPS survey of 50 per cent of the feeders and has
Particulars
As filed by the
CESC
As approved by the
Commission
FY17 FY18 FY18
No of installations 3,40,102 3,69,402 3,69,402
Mid-Year no. of installations 3,54,752 3,54,752
Specific consumption in
units/installation/annum
8,368 6,728
Sales in MU 2,968.65 2,386.77
lxxxi
identified 9,114 as not-in-use installations and 82,908 as
unauthorized installations. The CESC has sought time up to March,
2017 to revalidate the same and to complete the survey of
remaining installations under other feeders, to enable it to arrive
at correct number of dried up/defunct/not-in-use wells and to
take further action to deduct such IP-set installations from its
accounts.
In this regard, the CESC is directed to complete the GPS survey of
IP-sets within the targeted time as agreed by it and compliance
thereon shall be submitted to the Commission. In view of the
pendency of GPS survey of IP-sets, the number of installations
estimated for FY17 as well as for FY18 are subject to change
based on the GPS survey. Hence, on completion of the GPS
survey, the CESC shall arrive at correct number of IP-sets in the
field, duly deducting from its account the number of dried
up/defunct/not-in-use wells, based on the GPS survey results. Any
variation in sales due to change in number of installations would
be trued up during the Annual Performance Review, for the FY18.
Further, it is noted that the CESC has already segregated 372
agriculture feeders from rural loads under NJY phase1&2 and
implementation of balance feeders’ works is in progress.
Therefore, energy consumed by the IP-sets could be more
accurately measured at the 11 KV feeder level at the sub-stations
after allowing for distribution system losses in 11 KV lines,
distribution transformers and LT lines.
Hence, the Commission reiterates its directive that the CESC shall
report the total IP-set consumption on the basis of specific
consumption arrived at from the consumption data from energy
meters at the substations in respect of agriculture feeders
segregated under NJY only, to the Commission, every month
regularly, as per the following format:
lxxxii
Mo
nth
Na
me
of
Su
b-d
ivis
ion
No
. o
f
Se
gre
ga
ted
Ag
ric
ultu
ral
Fe
ed
ers
in
th
e s
ub
div
isio
n
Mo
nth
ly C
on
sum
ptio
n in
MU
as
rec
ord
ed
in
all t
he
ag
ric
ultu
ral fe
ed
ers
at
the
sub
sta
tio
ns
pe
rta
inin
g t
o t
he
su
b-
div
isio
n
Dis
trib
utio
n lo
ss(1
1k
V lin
e, D
TCs,
& L
T
lin
e)
Plu
s sa
les
to o
the
r c
on
sum
ers
if
an
y, in
MU
( lo
sse
s in
all t
he
ag
ric
ultu
ral fe
ed
ers
on
ly t
o b
e
co
nsi
de
red
)
Ne
t c
on
sum
ptio
n d
uly
de
du
ctin
g
the
Dis
trib
utio
n lo
ss (
11k
V lin
e, D
TCs
<
lin
e)
& a
ny
oth
er
loa
ds
if a
ny
No
. o
f IP
se
ts
(to
tal-
dri
ed
up
) c
on
ne
cte
d
to t
he
ag
ric
ultu
ral
fee
de
rs in
th
e
sub
div
isio
n
Ave
rag
e
co
nsu
mp
tio
n o
f
IP s
ets
/ m
on
th
(sp
ec
ific
co
ns
in u
nits
/IP/m
on
th)
Tota
l n
o o
f IP
sets
(to
tal-
dri
ed
up
) in
the
su
bd
ivis
ion
(as
pe
r D
CB
)
Tota
l sa
les
of IP
sets
in
MU
Begin
ning
of the
Month
Servic
ed
during
Month
Mid-
Month
Begin
ning
of the
Month
Servic
ed
during
Month
Mid-
Month
1 2 3 4 5 6=(4-5) 7 a 7 b 7c
=
(7a+7b)
/2
8=6/7c 9 a 9 b 9c
=
(9a+9
b)/2
10=
8*9c
April to
March
Subdivisi
on-1
Subdivisi
on-2
Subdivisi
on….
Note:
(1) If the agricultural feeders are not yet segregated under NJY in any sub-division, then the
specific consumption of the division / circle / zone / company (where NJY is taken up)
shall be considered to compute the IP consumption of such sub-division.
(2) No. of dried up IP-set installations shall be deducted from the accounts, while arriving at
the month-wise and subdivision-wise specific consumption and total sales.
Based on the above discussions, the category-wise approved
number of installations and sales for the year FY 18 vis-à-vis the
estimates made by CESC is indicated below:
TABLE-5.6
Approved Sales for FY18
FY18 FY-18
Category CESC’s estimate Approved
Installations Sales Installations Sales
No. MU No. MU
LT-2a 1847441 1070.63 1842749 1030.81
LT-2b 3063 9.9 3088 9.73
LT-3 238968 310.82 239319 297
LT-4 (b) 202 0.8 202 0.8
LT-4 (c) 7537 14.84 7537 14.84
LT-5 40945 147.23 40946 143.77
LT-6-WS 25860 216.56 25860 216.56
LT-6-PL 21188 111.53 21592 111.53
LT-7 34645 15.82 34645 15.82
HT-1 152 466.79 140 463.65
HT-2 (a) 934 776.96 917 776.95
HT-2 (b) 604 132.01 590 126.28
HT2C 283 65.27 283 65.27
HT-3(a)& (b) 100 70.85 95 84.51
HT-4 18 3.96 18 5.93
lxxxiii
HT-5 26 5.08 26 5.08
Sub-Total other
than BJ/KJ and
IP sets
2221966 3419.05 2218006 3368.54
BJ/KJ 496020 118.52 496020 106.17
IP 369402 2968.65 369402 2386.77
Sub-Total of
BJ/KJ and IP sets 865422 3087.17 865422 2492.94
Total 3087388 6506.22 3083428 5861.48
Thus, the Commission decides to approve 5861.48 MU as sales for FY18.
5.2.3 Distribution Losses for FY18:
CESC’s Submission:
As per the audited accounts for FY16, the CESC has reported distribution
losses of 13.60% as against an approved loss level of 14.50%. The
Commission in its Tariff Order dated 2nd March, 2015 had fixed the target
level of losses for FY18 at 13.00%. CESC in its application has proposed to
retain the loss levels of 13.00% for FY18.
Commission’s Analysis and Decisions:
The performance of CESC in achieving the loss targets set by the
Commission in the past six years is as follows:
TABLE – 5.7
Approved & Actual Distribution Losses-FY11 to FY16
Figures in % Losses
Particulars FY11 FY12 FY13 FY14 FY15 FY16
Approved
Distribution losses
15.50 15.24 15.00 15.50 15.00 14.50
Actual
distribution losses
16.42 16.20 15.07 14.73 13.88 13.60*
*Actual losses for FY16 are reported as 13.60%.
As per Commission’s APR the losses for FY16 is 17.26% after validation of sales.
As discussed in the previous chapter of this Order, based on the revised
consumption of IP Sets, the distribution losses for FY16 is reassessed at
17.26% which is much higher than the actual loss of 13.6% reported by
CESC.
The Commission has allowed the capex as proposed by CESC and
substantial capital expenditure is consistently being incurred by the
lxxxiv
CESC. Investments in improvements of the existing distribution system
enable the CESC to reduce the distribution losses besides increasing the
reliability and quality of power supply to end consumers.
Hence, the Commission, in its preliminary observations stressed on the
need of further reduction in the distribution loss levels proposed by the
CESC, for FY18, duly considering the past and the present capex.
Therefore, there could have been a revised target of distribution loss for
FY18. However, the CESC has not proposed any change to its proposed
loss levels. Nevertheless, considering that, a higher target would
incentivize CESC to make efforts to identify and plug commercial losses
through vigilance and other activities, the Commission decides to retain
the distribution loss levels as approved in the Tariff Order dated 30th
March, 2016 for FY18 as follows:
TABLE – 5.8
Approved Distribution Losses for FY18
Figures in % Losses
Distribution Loss Range FY18
Upper limit 13.50
Average 13.00
Lower limit 12.50
5.2.4 Power Purchase for FY18
CESC’s Submission:
CESC has submitted the power purchase requirement along with its cost
including the transmission charges and SLDC charges, in D-1 Format.
CESC has sought approval of the Commission for purchase of power to
an extent of 7739.23MU at Cost of Rs 2983.57Crores for the FY18, which
includes transmission charges and SLDC charges.
The cost of power purchase has been considered by the CESC as per
the norms defined in the contracts (PPAs)/Regulations and based on the
Tariff indicated by the KPCL, for its Stations. In respect of Central
lxxxv
Generating Stations, DVC Stations and UPCL Stations, the cost is
considered as per the tariff determined by CERC.
Table-5.9
Power Purchase Cost as filed by CESC for FY18
Source of Power
Power Purchase Cost as filed by CESC
Energy in MU Cost in Rs. Crs Cost Per Unit
in Rupees
KPCL Hydel Energy 1645.85 126.47 0.76
KPCL Thermal Energy 1850.79 806.07 4.35
CGS Energy 2245.57 798.32 3.55
IPP 824.86 349.76 4.24
NCE 1021.25 348.80 3.41
Other State Hydel 3.41 5.93 17.38
Short Term/Medium
term
147.50 66.37 4.50
KPTCL Transmission
charges
334.94
PGCIL Charges 146.53
POSOCO Charges 0.38
Total 7739.23 2983.57 3.85
Commission’s Analysis and Decisions:
The energy requirement of the ESCOMs, including CESC is being met by
Karnataka Power Corporation Limited (KPCL) Generating Stations,
Central Generating Stations(CGS), Major Independent Power
Producers(IPPs) and Minor Independent Power Producers (RE sources)
through long term Power Purchase Agreements.
The Commission has considered the availability of energy as furnished by
KPCL for its generation and by SRPC/CEA in respect of Central
Generating Stations (CGS). The availability of CGS stations is based on
the share of Karnataka, as notified by MoP from time to time. However,
the availability of energy from CGS thermal Generating Stations has
been considered duly limiting the quantum of energy as per the
requirement of ESCOMs, to meet the sales target on the basis of merit
Order dispatch.
The energy availability for FY18 from the upcoming thermal projects of
750 MW unit No.3 of BTPS, 2x800 MW units of YTPS and 1x800 MW of Kudgi
plant of NTPC, has not been considered by the CESC, since these units
are under trial Operation and are yet to stabilize.
The Commission has decided to consider the energy availability from
these units in line with the LGBR furnished by the NTPC for the 1X800 MW
lxxxvi
unit of Kudgi Power Plant for the FY18. However, the energy has been
considered from these units by limiting the quantum of energy as per the
requirement of ESCOMs, to meet the sales target on the basis of merit
order despatch. It is expected that any surplus energy available from
tied up sources of energy would be traded by the ESCOMs through PCKL
on commercial principles. Similarly, any requirement over and above
the quantum approved in this Tariff Order shall be procured from the tied
up sources only.
While approving the cost of power purchase, the Commission has
determined the quantum of power from various sources in accordance
with the principles of merit order schedule and dispatch based on the
ranking of all approved sources of supply, according to the merit order
of the variable cost.
After a detailed Analysis of the rates claimed by the CESC, the
Commission has arrived at the power purchase cost to be allowed in the
ARR for the FY18.
The fixed charges and the variable charges for the Central Generating
Stations, UPCL Stations and the DVC Stations are reckoned based on the
Tariff determined by the CERC and the CERC norms. The transmission
charges payable to PGCIL are arrived at with 5% annual escalation on
the base figure for FY16.
The fixed charges and the variable charges for the State owned Thermal
and Hydel Power Stations are based on the tariff approved by the
Commission and the norms in the PPAs wherever the tariff is regulated as
per the PPAs. In respect of upcoming new stations only variable charge
has been considered.
The variable costs of State thermal stations and UPCL are considered
based on the recent power purchase bills passed by the BESCOM duly
keeping in view the substantial increase in the fuel costs. This is subject to
adjustment in the FAC exercise/Annual Performance Review of FY18.
The ESCOM-wise share of the quantum of power from different sources
of generation is as per the allocation given by the Government of
Karnataka.
The Source-wise approved power purchase quantum for the State (of all
ESCOMs) and its cost is as under:
lxxxvii
TABLE-5.10
Approved Power Purchase Quantum & Cost- For the State
Source of Power
Power Purchase
Energy
(MU)
Amount in
Rs. Crores
Cost/Unit
in Rs.
KPCL Thermal Energy 16071.68 6963.89 4.33
CGS Energy 20542.91 7283.67 3.55
IPP 6712.00 3288.88 4.90
KPCL Hydel Energy 11668.46 926.33 0.79
OTHER HYDRO 119.37 49.54 4.15
NCE 7165.41 2980.86 4.16
NTPC Bundled power 582.21 258.46 4.44
Power purchase from Co gen 1300.00 451.10 3.47
Short term Power Purchase 1120.00 467.04 4.17
Short term Purchase from MSEDCL 294.00 106.43 3.62
TRANSMISSION CHARGES
PGCIL CHARGES
1066.00
KPTCL CHARGES
2753.70
SLDC
24.77
POSOCO CHARGES
3.48
TOTAL INCLUDING TRANSMISSION & SLDC
CHARGES 65576.04 26624.15 4.06
The Source-wise approved Power Purchase quantum and cost of CESC is
as under:
TABLE-5.11
Approved Power Purchase Cost of CESC for FY18
Source of Power
Power Purchase Cost as
filed by CESC
Power Purchase Cost as
approved by the
Commission
Energy
in MU
Cost in
Rs Cr
Per
Unit
Cost in
RS
Energy in
MU
Cost in
Rs Cr
Per
Unit
Cost
in RS
KPCL Hydel Energy 1645.85 126.47 0.76 2434.98 153.76 0.63
KPCL Thermal Energy 1850.79 806.07 4.35 1031.07 445.66 4.32
CGS Energy 2245.57 798.32 3.55 2184.12 774.41 3.55
UPCL 824.86 349.76 4.24 164.70 80.70 4.90
Renewable Energy 1021.25 348.80 3.41 828.55 361.79 4.36
Other State Hydel 3.41 5.93 17.38 12.69 5.27 4.15
Short Term/Medium
term
147.50 66.37 4.50 316.19 120.00
PGCIL Charges 146.53 109.79
KPTCL Charges 334.94 301.47
SLDC & POSOCO Charges 0.38 3.52
Total 7739.23 2983.57 3.85 6972.30 2356.37 3.379
lxxxviii
The details of station-wise / source-wise power purchased quantum &
cost for the State and CESC are shown in Annexure-I & Annexure-II
respectively.
5.2.5 RPO target for FY18:
1. The Commission had directed CESC to submit the estimates for
complying with solar and non-solar RPO for 2017-18, including cost
implication for purchasing RECs, if any.
CESC in its replies has not furnished the estimates explicitly. However
as per the D1 format furnished by CESC, the estimate would be as
indicated below:
TABLE-5.12
Estimated Solar RPO for FY18 Energy in MU
Estimated Energy Purchase 7739.23
Estimated Non-Solar energy purchase 457.31
Estimated Non-Solar compliance as percentage of energy
purchase
5.91
Estimated Solar energy purchase 563.94*
Estimated Solar compliance as percentage of energy purchase 7.29
*Includes NTPC bundled power of 67.39 MU. As NTPC bundled power for FY16 is retained for FY18 also,
based on the breakup furnished by CESC for FY16, out of 67.39 MU, solar energy at 12.56 MU is considered.
2. Further, the Commission had directed CESC to furnish certain details,
with respect to the renewable energy purchase estimates made for
the FY18.
CESC in its replies has furnished the following details
TABLE-5.13
Anticipated Capacity Addition from RE Sources
Source
Capacity
under PPA
in MW as on
30.11.2016
Anticipated MW
capacity
addition under
PPA during the
remaining
period of FY17
Anticipated
MW capacity
addition under
PPA during
FY18
Wind 121.25 00 00
Mini-hydel 117.70 5.00 0
Co-generation 28.00 93.14 16.50
Biomass 7.80 0 00
Waste to Energy 00 0 00
Solar 26.00 79.00 255.00 CESC has also indicated that it would purchase 73.29MU from IEX.
lxxxix
3. The Commission had directed CESC to furnish certain data on solar
power projects. CESC has furnished the details as under:
TABLE 5.14
Anticipated Solar Capacity and Energy during FY17 & FY18
Type of Solar Plant
Capacity
in
MWp
Estimated Energy
contribution and
cost for FY17
Estimated Energy
contribution and
cost for FY18
Qty
(MU)
Cost
(Rs.Crores)
Qty
(MU)
Cost
Rs.Crores)
Solar Rooftop plants of < 500KW 0.5 1.495 0.227 0 0
Solar Rooftop plants of >500KW 1.827 0 0 0 0
1-3 MW Projects allotted to Farmers
by KREDL.
21 8.738 7.32 0 0
20 MW Projects Taluk wise issued by
KREDL.
145 0 0 211.70 106.80
Other MW scale projects 58 25.4 17.46 96.30 43.30
Total 226.33 35.63 25.01 308 150.10
*Projects expected in FY18
Commission’s observations on CESC’s RPO Submissions:
Regarding Non-Solar RPO, the Commission notes that:
a. As per D-1 Format, the non-solar renewable energy is
estimated as 457.31 MU.
b. Even though, CESC has not considered any energy under
non-solar projects for FY18 in D-1 format, in the replies
furnished to the preliminary observations, it has considered
new Mini-Hydel Projects of 5 MW and about 110 MW of
cogeneration capacity addition. CESC has not considered
the contribution from the above projects while estimating
renewable energy for FY18.
c. With the estimated energy of 7739.23 MU for FY18 and
considering excess solar energy of 412.37 MU, CESC as per its
filing would meet Non-solar RPO of 11.24% against target of
12% for FY18.
As far as solar RPO is concerned, the Commission notes that:
a. As per D-1 Format, the solar renewable energy is estimated as
563.94 MU. However, considering only 12.56 MU of solar
xc
energy, out of NTPC bundled power of 67.90 MU, CESC would
be able to procure only 509.11 MU of solar energy.
b. With the estimated energy of 7739.23 MU and considering
509.11 MU of solar energy, CESC would meet solar RPO of
6.58% against target of 1.25% for FY18.
c. In the replies to the preliminary observations, CESC has
estimated solar energy as 150.10 MU, which is not in tune with
the data furnished in D-1 format.
Commission’s Analysis and Decision:
The Commission has approved power purchase quantum of
6972.30 MU for FY18. The Non-solar RPO target at 12% would be
836.68 MU. The Commission has approved purchase of 601.00 MU
from non-solar RE sources. Thus, CESC would be able to procure
601.00 MU as against an estimated RPO of 836.68 MU, resulting in
shortfall of 235.68 MU. Even after considering the anticipated
surplus of solar energy of 229.26 MU, CESC would fall short in
meeting the non-solar RPO by 6.42 MU. Therefore, there may be a
need for purchasing RECs. Thus, in case there is a shortfall based on
the actuals, CESC may purchase RECs at the market rates, which
would be considered by the Commission in the APR of FY18.
The Commission has approved power purchase quantum of
6972.30 MU for FY18. The Solar RPO target at 1.25 % would be 87.15
MU. The Commission has approved purchase of 316.41 MU of Solar
energy. Thus, CESC would exceed the solar RPO by 229.26 MU,
which shall be utilized to meet the shortfall in non-solar RPO. In
case, there is any need to buy Solar RECs to fully meet the solar
RPO, the cost thereon would be factored in the APR of FY18.
5.2.6 O & M Expenses for FY18:
CESC’s Proposal:
The CESC, in its application, has considered the actual O&M expenses of
Rs.418.48 as the base year O&M expenses and factored the weighted
inflation index of 7.71% and consumer growth index of 3.98% for FY17 on
three years CAGR and 7.41% for FY18. Also an amount of Rs.282.63
Crores is claimed as CESC portion of liability towards pension and
xci
gratuity as per the instructions of the Energy Department, Government of
Karnataka vide letter No. EN 26 PSR 2016/ P3 dated 16th September,
2016. CESC has also included an amount of Rs. 63.87 Crores towards
increase in employee cost on account of the proposed revision of pay
scales during FY18.
Based on the above, the CESC has sought the O & M expenses of Rs.
850.63 Crores for FY18 as detailed below:-
TABLE – 5.15
O & M Expenses for FY18- CESC’s Submission
Amount in Rs. Crores
Particulars FY16 FY17 FY18
No. of Installations 2962650 3087388
CGI based on 3 Year CAGR 3.98% 4.11%
Weighted Inflation index 7.71% 7.71%
Base Year O&M expenses (as per
actuals of FY16 ) 418.48
Total O&M Expenses 459.03 504.12
Pay scale impact during FY18 63.87
P&G Contribution liability 282.63
Total O&M Expenses for FY18 850.63
Commission’s analysis & decision:
The Commission in its MYT Order dated 30th March, 2016 while deciding
the ARR for each year of the control period FY17-19, had approved
O&M expenses of Rs. 484.09 Crores for FY18 based on the base year
O&M expenses of FY16 determined on the basis of the actual O&M
expenses inclusive of contribution to P&G Trust of FY15, three years
compounded annual growth rate (CAGR) of consumers of 3.92% and
weighted inflation index of 7.24%. The approved O&M expenses for FY18
were as follows:
Table-5.16
Approved O&M Expenses for FY18 as per Tariff Order dated 30th March,
2016
Particulars
FY17 FY18
No. of Installations 2963000 3070460
CGI based on 3 Year CAGR 3.98% 3.92%
Weighted Inflation index 7.71% 7.71%
Base Year O&M expenses (as per
actuals of FY15 )-Rs.Crs 406.02
Total O&M Expenses-Rs.Crs 443.46 484.09
xcii
As per the norms specified under the MYT Regulations, the O & M
expenses are controllable expenses and the distribution licensee is
required to incur these expenses within the approved limits.
The Commission notes that, the CESC has claimed additional O&M
expenses of Rs.63.87 Crores and Rs.282.63 Crores for FY18 owing to
revision of pay scales and liability of P&G contribution respectively.
The Commission is of the view that additional employee cost due to
revision of pay scale during FY18 could be factored and considered only
after being incurred by the distribution licensee. The claims of liability of
P&G contribution of Rs.282.63 Crores is discussed separately in the
following paragraphs.
In view of the above discussion, the Commission has computed the O &
M expenses for FY18 duly considering the actual O & M expenses of FY16
as per the audited accounts (being the latest data available as per the
audited accounts) to arrive at the O & M expenses for the base year i.e.
FY16. The actual O& M expenses for FY16 are Rs.418.48 Crores inclusive of
contribution to P&G Trust. Considering the Wholesale Price Index (WPI) as
per the data available from the Ministry of Commerce & Industry,
Government of India and Consumer Price Index (CPI) as per the data
available from the Labour Bureau, Government of India and adopting
the methodology followed by CERC with CPI and WPI in a ratio of 80:20,
the allowable annual escalation rate for FY18 is 7.71%.
For the purpose of determining the normative O & M expenses for FY18,
the Commission has considered the following:
e) The actual O & M expenses incurred as per the audited accounts
inclusive of contribution to the Pension and Gratuity Trust to
determine the O & M expenses for the base year FY16.
f) The three year compounded annual growth rate (CAGR) of the
number of installations of 4.07% considering the actual number of
installations as per the audited accounts up to FY16 and as
projected by the Commission for FY17 and FY18.
g) The weighted inflation index (WII) at 7.71%.
xciii
h) Efficiency factor at 2% as considered in the MYT Order.
The above said parameters are computed duly considering the same
methodology as being followed in the earlier Tariff Orders of the
Commission and the relevant Orders issued by the Commission on
Review Petitions.
Accordingly, the normative O & M expenses for FY18 are as follows:
TABLE – 5.17
Approved O & M expenses for FY18
Particulars FY16 FY17 FY18
No. of Installations 2958371 3083428
CGI based on 3 Year CAGR 3.93% 4.07%
Weighted Inflation index 7.71% 7.71%
Base Year O&M expenses (as per
actuals of FY16 )-Rs.Crs 418.48
Total allowable O&M Expenses-Rs.Crs 503.63
Since, the base year data includes the O & M expenses inclusive of
contribution to the P & G Trust, the Commission has not considered
allowing contribution to the P & G Trust separately.
Thus, the Commission decides to approve O&M expenses of Rs.503.63
Crores for FY18.
5.2.7 Depreciation:
CESC’s Proposal:
The CESC, in its application has claimed the depreciation of Rs.191.01
Crores for FY18 as detailed below:
TABLE – 5.18
Depreciation-FY18- CESC’s Submission
Amount in Rs.Crores
Particulars FY18
Land and Rights 0.02
Buildings 3.57
Civil 0.16
Other Civil 0.05
Plant & M/c 23.79
Line, Cable Network 161.57
Vehicles 0.87
xciv
Furniture 0.56
Office Equipment 0.42
Total 191.01
Commission’s analysis and decision:
The Commission notes that, the depreciation amount claimed by CESC is gross
depreciation on gross fixed assets. The depreciation of Rs.53.26 Crores on the
assets created out of consumer contribution/ grants has been factored under
other income for FY18.
The Commission, in accordance with the provisions of the MYT
Regulations and amendments issued thereon, has determined the
depreciation for FY18 considering the following:
a) The actual rate of depreciation of category-wise assets has been
determined considering the depreciation and gross block of
opening and closing balance of fixed assets, as per the audited
accounts for FY16.
b) The actual rate of depreciation, so arrived at, is considered to
allow the depreciation on the gross block of opening and closing
balance of fixed assets fixed assets projected by CESC, in its
application for FY18 duly factoring the retirement of assets also.
c) The depreciation on account of assets created out of consumers
contribution / grants are deducted based on the opening and
closing balance of such assets duly considering the addition of
assets as proposed by the CESC, at the weighted average rate of
depreciation as per actuals in FY16.
Accordingly, the depreciation for FY18 is arrived at as follows:
TABLE – 5.19
Approved Depreciation for FY18
Amount in Rs. Crores
Particulars FY18
Buildings 3.19
Civil 0.13
Other Civil 0.03
Plant & M/c 43.65
Line, Cable Network 122.07
Vehicles 0.12
xcv
Furniture 0.26
Office Equipment’s 0.65
Total 170.09
Less: Deprecation on Assets created
out of Consumer Contribution / Grants 53.26
Net Depreciation 116.83
Thus, the Commission decides to approve an amount of Rs.116.83 Crores
towards depreciation for FY18.
5.2.8 Interest on Capital Loans:
CESC’s proposal:
CESC in its application has stated that, based on the proposed revised
capex of Rs.889.00 Crores and the interest on capital loan requirement is
projected at Rs.186.57 Crores for FY18.
The CESC has requested to approve interest on capital loan for FY18 as
follows:
TABLE – 5.20
Interest on Capital Loan– CESC’s Submission
Amount in Rs. Crore
Commission’s analysis and decision:
The Commission in its Order dated 30th March, 2016 had approved
capex of Rs.552.00 Crores for FY18. CESC in its present application has
proposed the revised capex of Rs.889.00 Crores for FY18. As discussed in
the preceding section of this Order, the Commission has reckoned
capex of Rs.552.00 Crores for FY18.
As per the audited accounts and as per the APR of FY16, the CESC had
incurred interest on capital loan at a weighted average rate of interest
Particulars FY18
Opening Balance of Capital
Loans 1613.81
Add : New Loans 936.00
Less : Repayments 520.22
Total Loan at the end of the
year 2029.59
Average Loan for the year 1821.70
Total Interest on Capital Loans 186.57
xcvi
of 11.40% p.a. This rate of interest is considered for the existing loan
balances for which interest has to be factored during FY17. Further, for
the year FY18, the weighted average rate of interest of the preceding
year has been considered on the existing loan balances. The
Commission has considered new loan, in compliance of the debt equity
ratio of 70:30 as in MYT Regulations.
The present interest rates by commercial banks and financial institutions
are charged mainly on the basis of Marginal Cost of fund based Lending
Rates (MCLR). These rates are comparatively lower than the base rates
considered earlier. Further, in view of the changing economic situation, it
is observed that there is a considerable reduction in the MCLR and also
downward trend is evident in the interest rates. Hence, in such a
situation, the Commission is of the view that, the ESCOMs can avail
Capital loans at competitive interest rates. The Commission notes that,
the present SBI MCLR rate for capital loans with tenure of 3 years is 8.15%.
Considering the present MCLR, the Commission decides to allow an
interest rate of 11.00% for FY18 for new Capital loans. It shall be noted
that, the rate of interest now considered by the Commission on the new
capital loans is subject to review during APR.
Accordingly, the approved interest on loans for FY18 is as follows:
TABLE – 5.21
Approved Interest on Loans for FY18
Amount in Rs. Crores
Particulars FY18
Opening Balance long term loans 1042.39
Add : New loans 386.40
Less : Repayments 155.51
Total loan at the end of the year 1273.28
Average Loan 1157.84
Weighted average rate of interest in % 11.35%
Interest on long term loans 131.41
Thus, the Commission decides to approve interest of Rs.131.41 Crores on
Capital loans for FY18.
xcvii
5.2.9 Interest on Working Capital:
CESC’s proposal:
CESC has claimed interest on working capital of Rs.68.95 Crores based
on the norms prescribed in the MYT Regulations.
Commission’s analysis and decision:
The Commission in its MYT Order dated 30th March, 2016 while deciding
the ARR for each year of the control period FY17-19, had approved
Interest on working capital of Rs. 73.64 Crores for FY18.
The Commission has been computing the interest on working capital as
per the norms specified under the MYT Regulations and amendments
thereon, which consists of one month’s O & M expenses, 1% of opening
GFA and two months’ revenue. As discussed earlier, the interest regime is
based on MCLR. The present MCLR for loans with tenure of one year is
8.00%. As such, the Commission decides to considered interest on
working capital at 11% p.a. for FY18.
Accordingly, the approved interest on working capital for FY18 is as
follows:
TABLE – 5.22
Approved Interest on Working Capital for FY18
Amount in Rs. Crs
Particulars FY 18
One-twelfth of the amount of O&M Expenses 41.97
Opening Gross Fixed Assets (GFA) 3073.80
Stores, materials and supplies 1% of Opening
balance of GFA 30.74
One-sixth of the Revenue 556.67
Total Working Capital 629.38
Rate of Interest (% p.a.) 11.00%
Interest on Working Capital 69.23
Thus, the Commission decides to approve the interest on working capital
of Rs.69.23 Crores for FY18.
xcviii
5.2.10 Interest on Consumer Security Deposit:
CESC’s proposal:
CESC in its application has claimed interest on consumer security deposit
of Rs.41.70 Crores for FY18 duly considering the addition of deposits for
FY18.
Commission’s analysis and decision:
In accordance with the KERC (Interest on Security Deposit) Regulations
2005, the interest rate on consumer security deposit to be allowed is the
bank rate prevailing on the 1st of April of the financial year for which
interest is due. As per Reserve Bank of India Notification dated 4th
October, 2016, the applicable bank rate is 6.75%. The Commission has
considered the same, for computation of interest on consumer security
deposits for FY18.
The Commission has considered the consumer security deposits as per
audited accounts of FY16 for onward projection for FY18. Also, the
Commission is considering the average of the opening and closing
balances of consumer deposits of the relevant year. Accordingly, the
interest on consumer deposits for FY18 is as follows:
TABLE – 5.23
Approved Interest on Consumer Security Deposits for FY18
Amount in Rs. Crores
Particulars FY18
Opening balance of consumer security
deposits 504.48
Addition of deposits during FY18 40.00
Closing balance of consumer security
deposits 544.48
Average Consumer Security Deposits for
FY18 524.48
Rate of Interest at bank rate to be allowed
as per Regulations 6.75%
Approved Interest on average Consumer
Security Deposit 35.40
xcix
Thus, the Commission decides to approve interest on consumer security
deposits of Rs.35.40 for FY18.
5.2.11 Other Interest and Finance Charges:
CESC has claimed an amount of Rs.0.52 Crores towards other interest
and finance charges for FY18. Considering, the expenditure on this item
in the earlier years, the Commission decides to allow an amount of
Rs.0.52 Crores towards interest and finance charges for FY18.
5.2.12 Interest and other expenses Capitalized:
CESC has claimed an amount of Rs.24.00 Crores towards capitalization
of interest and other expenses during FY18. Considering, the capital
expenditure incurred and capitalized in the previous years, the
Commission decides to allow capitalization of interest and other
expenses of Rs.24.00 Crores as proposed by CESC for FY18.
The abstract of approved interest and finance charges for FY18 are as
follows:
TABLE – 5.24
Approved Interest and finance charges for FY18
Amount in Rs. Crores
Particulars FY18
Interest on Loan Capital 131.41
Interest on Working Capital 69.23
Interest on Consumers Security Deposit 35.40
Other Interest & Finance Charges 0.52
Less : Interest & other expenses capitalized (24.00)
Total Interest & Finance Charges 212.57
5.2.13 Other Debits and Prior period charges:
CESC, in its application has claimed an amount of Rs.6.79 Crores towards
other debits and Rs.2.00 Crores towards net prior period debit / credit for
FY18.
Commission’s analysis and decision:
The Commission notes that, CESC has claimed expenditure of Rs.6.79
Crores towards Other Debits and Rs.2.00 Crores towards Prior period
c
debit/credit for FY18. It is to be noted that, these items of
expenditures/income cannot be estimated upfront and included in the
proposed ARR for FY18. However, as per the provisions of the MYT
Regulations, the Commission would consider the same based on the
actuals as per the audited accounts while approving APR for FY18.
5.2.14 Return on Equity:
CESC’s proposal:
CESC in its application has not claimed RoE for FY18 as there is negative
equity on account of accumulated losses.
Commission’s analysis and decision:
The Commission has considered the actual amount of share capital,
share deposits and reserves & surplus as per the audited accounts for
FY16 for arriving at the allowable equity base for the control period FY18.
The Commission, in accordance with the provisions of the MYT
Regulations, and amendments thereon, has considered 15.5% of Return
on Equity duly grossed up with the applicable Minimum Alternate Tax
(MAT) of 21.342%. This works out to 19.706% per annum. Further, as per
the decision of the Commission in the Review Petition No.6/2013 and
Review Petition 5/2014, and the provisions of amended Regulations the
Return on Equity is to be computed based on the opening balances of
share capital, share deposits and accumulated balance of surplus /
deficit under reserves and surplus account. Further, an amount of
Rs.23.00 Crores of recapitalized consumer security deposit as net-worth is
considered as per the orders of the Hon’ble Appellate Tribunal for
Electricity in Appeal No.46/2014.
Further, in compliance with the Orders of the Hon’ble ATE in Appeal
No.46/2014, wherein it is directed to indicate the opening and closing
balances of gross fixed assets along with break-up of equity and loan
component in the Tariff Order henceforth, the details of GFA, debt and
equity (net-worth) for FY18 are indicated as follows:
TABLE – 5.25
Status of Debt Equity Ratio for FY18
Amount in Rs.
Crores
ci
From the above table it is seen that the amounts of debt and equity are
within the normative debt:equity amounts on the closing balances of
GFA for FY18. Further, the Commission would review the same during the
Annual Performance Review, for FY18, based on the actual data, as per
the audited accounts.
Accordingly, the Return on Equity that could be approved for FY18,
works out as follows:
TABLE – 5.26
Approved Return on Equity for FY18
Amount in Rs. Crores
Particulars FY18
Opening Balance of Paid Up Share Capital 508.57
Share Deposit 64.00
Reserves and Surplus (Accumulated deficit) (634.27)
Less Recapitalised Security Deposit (23.00)
Total Equity (84.70)
Thus, as there is negative equity due to accumulated deficit, the
Commission decides not to allow any Return on Equity for FY18.
5.2.15 Other Income:
CESC’s proposal:
CESC has claimed an amount of Rs.115.86 Crores as other income for
the FY18, which also include depreciation on assets created out of
consumer contribution / grants.
Commission’s analysis and decision:
The other income received by the CESC mainly includes income from
rebate on collection of electricity duty, miscellaneous recoveries, interest
on bank deposits, rent from staff quarters and sale of scrap, profit on sale
of stores besides incentives for timely payment of power purchase bills.
Year Particulars GFA Debt
Equity
(Net-
worth)
Normative
Debt @
70% of
GFA
Normative
Equity @
30% of
GFA
%age of
actual
debt on
GFA
%age of
actual
equity on
GFA
FY18 Opening
Balance
3073.80 1042.39 (84.70)
Closing
Balance
3602.02 1273.28 (84.70) 2521.41 1080.61 35.35% -
cii
The actual ‘other income’ as per the audited accounts for FY16 is
Rs.79.52 Crores.
Considering the other income earned by the CESC in the past two years,
the Commission decides to approve other income of Rs.59.48 Crores for
FY18.
5.2.16 Fund towards Consumer Relations / Consumer Education:
The Commission has been allowing an amount of Rs.0.50 Crore per year
towards consumer relations / consumer education. This amount is
earmarked to conduct consumer awareness and grievance redressal
meetings periodically and institutionalize a mechanism for addressing
common problems of the consumers. The Commission has already
issued guidelines for consumer education and grievance redressal
activities.
The Commission decides to continue providing an amount of Rs.0.50
Crore for each year of the control period FY18, towards meeting the
expenditure on consumer relations / consumer education.
The Commission directs CESC to furnish a detailed plan of action for
utilization of this amount and also maintain a separate account of these
funds and furnish the same at the time of APR.
5.2.17 Contribution towards Pension and Gratuity Trust
CESC in its application has claimed an amount of Rs.282.63 Crores as
being the arrears of contribution to P&G Trust not released by the
Government of Karnataka.
The Commission in its preliminary observations had requested CESC to
furnish reasons /justifications for inclusion of this amount in the proposed
ARR for FY18 to be recovered from the consumers as part of the retail
supply tariff during FY18 in contravention to the Commission’s decision in
Tariff Order 2016.
ciii
In its replies to the Commission’s preliminary observations, CESC has
stated that it has included an amount of Rs. 282.63 Crores towards CESC
portion of arrears of contribution to P&G Trust not released by the
Government of Karnataka, in accordance to the instructions issued by
the Energy Department, GoK vide Letter No. EN 26 PSR 2016/P3 dated
16.09.2016.
It is to be noted that, the Commission in its Order dated 30th March, 2016
has already dealt with this issue and has observed that,
“ a) As per Rule 4(13) of the Karnataka Electricity
Reforms (Transfer of Undertakings of KPTCL and its
Personnel to Electricity Distribution and Retail
Supply Companies) Rules, 2002, notified by the
Government on 31.05.2002, the State Government
is liable for funding the pension and gratuity
liability of existing pensioners as on the effective
date of Second Transfer Scheme.
b) The Government, as per its order dated
19.12.2002, has adopted “pay as you go”
approach to meet the pension and gratuity
requirements of existing pensioners on the
effective date of second transfer Scheme. With
this arrangement, the GoK is liable to meet the
pension and gratuity requirement of existing
pensioners”.
In the above context, as per the provisions of the prevailing Rules and
Government Orders issued thereon, the Commission had earlier decided
that this liability cannot be passed on to the consumers, through tariff.
In spite of this Order of the Commission, CESC has gone ahead to claim
this liability (in the proposed ARR for FY18) that should have been borne
by the Government of Karnataka.
The Commission reiterates its earlier decision that, as per Rule 4(13) of the
Karnataka Electricity Reforms (Transfer of Undertakings of KPTCL and its
Personnel to Electricity Distribution and Retail Supply Companies) Rules,
2002, notified by the Government on 31.05.2002 and Government Order
No. DE 15 PSR 2002 Dated 19.12.2002, the amount in question is liable to
be borne by the Government of Karnataka only and cannot be passed
on to the consumers, through tariff.
civ
In view of the above, the Commission is unable to accept the claims of
CESC to allow an amount of Rs.282.63 Crores being the GoK liability
towards arrears of contribution to P&G Trust in the ARR for FY18.
5.3. Abstract of revised ARR for FY18:
In the light of the above analysis and decisions of the Commission, the
following is the approved revised ARR for the control period FY18:
TABLE – 5.27
Approved Revised ARR for FY18 Amount in Rs.Crores
Sl.
No Particulars
FY18
As Appd
30.03.3016
As Filed
30.11.2016
As Revised
Approved
Revenue at existing tariff in Rs Crs
1 Revenue from tariff and Misc. Charges 2205.86 2154.32
2 Tariff Subsidy in BJ/KJ 21.80 20.98
3 Tariff Subsidy in IP 1457.84 1164.74
3 Total Existing Revenue 3685.50 3340.04
Expenditure in Rs Crs
5 Power Purchase Cost 2651.81 2648.63 2051.76
6 Transmission charges of KPTCL 332.24 332.24 301.47
7 SLDC Charges 2.70 2.70 3.14
8
Power Purchase Cost including cost of
transmission 2986.75 2983.57 2356.37
9 Employee Cost 394.71
10 Repairs & Maintenance 47.28
11 Admin & General Expenses 62.14
12 Total O&M Expenses 484.09 504.13 503.63
13 Depreciation 104.56 191.01 116.83
Interest & Finance charges
14 Interest on Capital Loans 124.89 186.57 131.41
15 Interest on Working capital loans 73.64 68.95 69.23
16 Interest on consumer security deposits 41.26 41.70 35.40
17 Other Interest & Finance charges 0.52 0.52
18 Less interest & other expenses capitalised 24.00 24.00 24.00
19 Total Interest & Finance charges 215.79 273.74 212.57
20 Other Debits* 0.00 6.79 0.00
21 Net Prior Period Debit/Credit* 0.00 2.00 0.00
22 Return on Equity 0.00 0.00 0.00
23
Funds towards Consumer Relations/Consumer
Education 0.50 0.00 0.50
24
Provision for contribution to P&G Trust (GoK
Liability) and Revision of pay scale. 346.50 0.00
25 Other Income 42.81 115.86 59.48
26
Disallowance of Interest and Depreciation on
imprudent investments in FY16 1.55
ARR 3748.89 4191.88 3128.86
27 Deficit for FY16 carried forward -456.54 -492.73
28 Net ARR 3748.89 4648.42 3621.58
cv
5.4. Segregation of ARR into ARR for Distribution Business and ARR for Retail
Supply Business:
CESC in its application has proposed the segregation of ARR into ARR for
Distribution Business and ARR for Retail Supply Business as proposed in
MYT application made earlier as detailed below:
TABLE – 5.28
Segregation of ARR – CESC’s Submission-FY18
Particulars
Distribution
Business
Retail Supply
Business
Power Purchase 0% 100%
Repairs & Maintenance 90% 10%
Employee costs 48% 52%
A&G expenses 55% 45%
Depreciation 78% 22%
Interest and Finance charges 100% 0%
Other interest charges 0% 100%
Other debits 48% 52%
Extra-ordinary items 0% 0%
Prior period expenses 91% 9%
RoE 75% 25%
Provision for taxes 50% 50%
Commission’s Analysis and Decisions:
The Commission notes that CESC has retained the same ratio as being
adopted for the MYT period FY17-19 for segregation of consolidated ARR
into ARR for Distribution Business and ARR for Retail Supply. As decided by
the Commission in its Tariff Order dated 30th March, 2016, the following
ratio of segregation of ARR is adopted for FY18:
TABLE – 5.29
Approved Basis for Segregation of ARR – FY18
Particulars Distribution
Business
Retail Supply
Business
O&M 51% 49%
Depreciation 84% 16%
Interest on Loans 100% 0%
Interest on Consumers’ Deposits 0% 100%
Return on Equity 75% 25%
Gross Fixed Assets 84% 16%
Non-Tariff Income 2% 98%
cvi
Accordingly, the following is the approved ARR for Distribution Business
and Retail supply business:
TABLE – 5.30
APPROVED REVISED ARR FOR DISTRIBUTION BUSINESS – FY18
Amount in Rs. Crores
Sl.
No Particulars
FY18
1 R&M Expenses
256.85
2 Employee Expenses
3 A&G Expenses
4 Depreciation 98.14
Interest & Finance Charges
5 Interest on Capital Loans 129.86
6 Interest on Working capital loans 6.42
7 Other Interest & Finance charges 0.52
8 Less interest & other expenses capitalised 24.00
9 Total 467.79
10 Other Income 1.19
11 NET ARR 466.60
TABLE – 5.31
APPROVED ARR FOR RETAIL SUPPLY BUSINESS – FY18
Amount in Rs.Crores
Sl.
No Particulars
FY18
1 Power Purchase 2051.76
2 Transmission Charges 304.61
3 R&M Expenses
246.78
4 Employee Expenses
5 A&G Expenses
6 Depreciation 18.69
Interest & Finance Charges
7 Interest on Working capital loans 62.81
8 Interest on consumers’ security deposits 35.40
9 Total 2720.05
10 Other Income 59.29
11
Fund towards Consumer Relations /
Consumer Education 0.50
12 NET ARR 2662.26
5.5. Gap in Revenue for FY18:
As discussed above, the Commission decides to approve the revised
Annual Revenue Requirement (ARR) of CESC for its operations in FY18 at
Rs.3621.58 Crores as against CESC’s application proposing the revised
ARR of Rs.4648.42 Crores by including the revenue deficit of Rs.456.54
Crores for FY16. This approved revised ARR includes an amount of
cvii
Rs.492.73 Crores which is determined as the deficit in FY16 as discussed in
Chapter-4. Based on the existing retail supply tariff, the total realization of
revenue will be Rs.3340.04 Crores which is Rs.281.54 Crores less than the
projected revenue requirement for FY18.
The net ARR and the gap in revenue for FY18 are shown in the following
table:
TABLE – 5.32
Revenue gap for FY18
Particulars FY18
Net ARR including carry forward gap of
FY16 (in Rs. Crores)
3621.58
Approved sales (in MU) 5861.48
Average cost of supply (in Rs./unit) 6.18
Revenue at existing tariff (in Rs. Crores) 3340.04
Gap in revenue (in Rs. Crores) (281.54) [
The determination of revised retail supply tariff on the basis of the above
approved ARR is detailed in the following Chapter.
cviii
CHAPTER – 6
DETERMINATION OF RETAIL SUPPLY TARIFF FOR FY18
6.0 Revision of Retail Supply Tariff for FY18-CESC’s Proposals and
Commission’s Decisions:
6.1 Tariff Application
As per the Tariff application filed by the CESC, it has projected an unmet
gap in revenue of Rs.962.92 Crores for FY18, which also includes the gap
in revenue of Rs.456.54 Crores for FY16. In order to bridge this gap in
revenue, CESC has proposed a uniform tariff increase of 148 paise per
unit, in respect of all the categories of consumers.
In the previous chapters of this order, the Annual Performance Review
(APR) for FY16 and the revision of ARR for FY18 has been discussed. The
various aspects of determination of tariff for FY18 are discussed in this
Chapter.
6.2 Statutory Provisions guiding determination of Tariff
As per Section 61 of the Electricity Act 2003, the Commission is guided
inter-alia, by the National Electricity Policy, the Tariff Policy and the
following factors, while, determining the tariff so that,
the distribution and supply of electricity are conducted on
commercial basis;
competition, efficiency, economical use of resources, good
performance, and optimum investment are encouraged;
the tariff progressively reflects the cost of supply of electricity, and also
reduces and eliminates cross subsidies within the period to be
specified by the Commission;
efficiency in performance is to be rewarded: and
a multi-year tariff framework is adopted.
cix
Section 62(5) of the Electricity Act 2003, read with Section 27(1) of the
Karnataka Electricity Reform Act 1999, empowers the Commission to
specify, from time to time, the methodologies and the procedure to be
observed by the licensees in calculating the Expected Revenue from
Charges (ERC). The Commission determines the Tariff in accordance with
the Regulations and the Orders issued by the Commission from time to
time.
6.3 Factors Considered for Tariff setting:
The Commission has considered the following relevant factors for
determination of retail supply tariff:
a) Tariff Philosophy:
As discussed in the earlier tariff orders, the Commission continues to
fix tariff below the average cost of supply in respect of consumers
whose ability to pay is considered inadequate and also fix tariff at or
above the average cost of supply for categories of consumers whose
ability to pay is considered to be higher. Thus, the system of cross
subsidy continues. However, the Commission has taken due care to
progressively bring down the cross subsidy levels as envisaged in the
Tariff Policy 2016, issued by the Government of India.
b) Average Cost of Supply:
The Commission has been determining the retail supply tariff on the
basis of the average cost of supply. The KERC (Tariff) Regulations,
2000, as amended from time to time, require the licensees to provide
details of embedded cost of electricity voltage / consumer
category-wise. The distribution network of Karnataka is such that, it is
difficult to segregate the common cost between voltage levels.
Therefore, the Commission has decided to continue the average
cost of supply approach for recovery of the ARR. With regard to the
indication of voltage- wise cross subsidy with reference to the
voltage-wise cost of supply, the same is indicated in the Annexure to
this Order.
cx
c) Differential Tariff:
The Commission has been determining differential retail supply tariff
for consumers in urban and rural areas, beginning with its Tariff Order
dated 25th November, 2009. The Commission decides to continue the
same in the present order also.
6.4 New Tariff Proposals by CESC’s:
i) Tariff determination for Auxiliary Consumption of KPTCL’s Sub-
stations:
CESC, in its tariff application dated 30th November, 2016, besides
seeking revision of retail supply tariff for all the categories of
consumers, has prayed for determination tariff for the Auxiliary
Consumption of KPTCL Stations. CESC has also filed separate
Petition before this Commission seeking tariff determination for
auxiliary consumption of KPTCL’s substations.
CESC Submission:
CESC and other ESCOMs have requested fixation of tariff for
KPTCL’s Auxiliary consumption on the following grounds:
1. The power utilized by KPTCL Substations for auxiliary
consumption purpose is supplied by ESCOMs through a
separate feeder or local feeder. The power so supplied by
ESCOMs is from the pooled purchase of power from different
sources at different rates. The cost incurred in procurement of
power by the ESCOMs, need to be paid by the KPTCL.
2. The auxiliary consumption of PGCIL stations, being the
transmission utility, is being billed under commercial tariff.
3. The auxiliary consumption of KPTCL Substations is being billed
at average power purchase cost of the ESCOMs where the
substations are geographically located, from June, 2005 to
October 2016 as per the KPTCL’s letter dated 15.12.2005.
Commission’s analysis and decision:
cxi
The treatment of the electricity consumption of KPTCL’s substations
has been a matter of contention between KPTCL and ESCOMs.
While the KPTCL has been urging the Commission to treat the
consumption of its substations as transmission loss, the ESCOMs have
been requesting the Commission to fix a commercial tariff.
The BESCOM in its letter dated 29.05.2015, had requested the
Commission to approve the Commercial tariff to the auxiliary
consumptions in respect of KPTCL Sub-stations. After examining the
issue in detail, the Commission had clarified that as per the
provisions of Regulation 3.3 of the KERC (Terms and Conditions for
Determination of Transmission Tariff) Regulations, 2006, the charges
for the auxiliary consumptions of KPTCL substations used for the
purpose of air-conditioning, lighting etc. are part of the normative
operation and maintenance expenses of KPTCL and hence the
charges for the same have to be borne by KPTCL. Further, the
Commission also notes that, the KPTCL while computing the
transmission losses, is not considering the electricity consumption of
its sub-stations as part of the transmission loss. Accordingly, the
Commission vide its letter No. B/07/05/451 dated 23.06.2015, had
clarified that since there is no specific category in the present tariff
schedule for billing the auxiliary consumption of KPTCL Substations,
the ESCOMs should seek determination of tariff in respect of sale of
power to KPTCL substations under the provisions of clause 3.05 of the
Conditions of Supply of Electricity by Distribution Licensees in the
State of Karnataka. Accordingly, the ESCOMs have filed the
petitions.
From the submissions made by CESC and other ESCOM’s, it is clear
that, the power utilized by KPTCL Sub-stations for the consumption
purpose is being supplied by the ESCOMs through a separate / local
feeder. Since, KPTCL is responsible for accounting the energy
purchased by the ESCOMs upto the interface point of the ESCOMs
and the energy utilized by KPTCL Substations for auxiliary
consumption purpose has not been recognized in computation of
transmission losses, the energy supplied from the distribution network
of the ESCOMs for the consumption of the KPTCL Sub stations has to
cxii
be accounted and charged in accordance with the provisions of
the KERC (Terms and Conditions for Determination of Transmission
Tariff) Regulations, 2006.
Now, keeping in view the request of the CESC and other ESCOMs,
the issue before the Commission is whether to fix a commercial tariff
or a tariff equal to the State’s average power purchase cost, to bill
the auxiliary consumption of KTPCL Sub-stations. The Commission
notes that any tariff charged to bill the KPTCL’s substations
consumption, shall have to be ultimately recovered through
transmission tariff, which in turn, is passed on to the end consumers in
the form of retail supply tariff. In order to minimise the burden on the
retail supply consumers, the Commission decides as follows:
In accordance with the provisions of Regulation 3.3 of the KERC
(Terms and Conditions for Determination of Transmission Tariff),
Regulations, 2006 and amendment thereon and Clause 3.05 of the
Conditions of Supply of Electricity by Distribution Licensees in the
State of Karnataka, the power supplied by the ESCOMs to the
KPTCL’s Substations for auxiliary consumption purposes, the
Commission decides to fix a single part tariff rate at the State
Average Power Purchase Cost, as approved by the Commission, in
the Tariff Orders issued from time to time.
Further, for the energy consumption by KPTCL’s Sub-stations for
auxiliary purposes, during the previous periods, the ESCOMs shall bill
it at the average power purchase cost of the State, as determined
by the Commission in the Tariff Orders issued from time to time.
cxiii
ii) Petition seeking increase in Demand Charges and reduction in energy
charges to HT consumers.
CESC in its application has proposed increase in Demand Charges
(Fixed Cost) for all categories of consumers. Some of the ESCOMs have
proposed increase in demand charges and reduction in energy
charges to HT-1, HT-2(a)(b) (c) and HT4 consumers for the following
reasons:
i) The ratio of fixed and variable cost of power purchase cost
payable to the private generators is 33: 67
ii) All the ESCOMs in the state are recovering the fixed cost of their
distribution network only 9% of the ARR, the balance 24%. of the
fixed cost through energy charge (variable charge)
iii) ESCOMs, it is not able to recover the variable costs which include
the fixed cost by Rs.10/- (Rupees Ten only) Per KVA/HP/KW from
the HT consumer opting for open access.
iv) The contribution of Fixed cost is only 5.68% of the ARR and the
remaining fixed cost is camouflaged in the energy charges, which
are higher.
With the above justification, the CESC has proposed to increase the
Demand charges by Rs.10 to 25 per units and other ESCOMs upto Rs.250
per KVA of the billing demand from the existing Demand Charge of
Rs.180 -200 per KVA. Other ESCOMs have also proposed reduction in
energy charges ranging between 20 Paise to 85 paise per unit to the
various categories of HT consumers.
Consumers’ Response:
The representatives of small scale industries have opposed the proposal
for increasing the Demand Charges. They have contended that
ESCOM’s has not furnished the working details of fixed charges and its
percentage to the total fixed charges being incurred. It is submitted that
as per the provisions of the Electricity Act, 2003, the CESC should realise
the cost of supply from all the categories of consumers and should not
confine recovery of fixed cost only to a specific category of consumers.
cxiv
Commission’s analysis and decision:
CESC, like other ESCOMs in its petition, has considered the recovery of
Fixed Cost (FC) of generation sources and the distribution network. It has
not considered the FC involved in transmission of power and the SLDC
charges which is one of the major components of the ARR. Further,
seeking increase in demand charges and reducing the energy charges
only to HT consumers does not appear to be a proper approach to
retain HT consumers in its fold. Any proposal to encourage sale or to
improve the ESCOM’s finances should be made by keeping the interest
of all the consumers in mind and the treatment to various class of
consumers across the ESCOM should be just and equitable. Hence, the
Commission is unable to accept the proposal of CESC and other
ESCOMs to increase the Demand Charges of its HT consumers at a
higher amount.
The Commission in its Tariff Order dated 30th March,2016 had considered
increase in demand charges to the consumers of all consumer in the
State. While doing so it had observed that:
“As per the new Tariff Policy issued by the Ministry of Power,
Government of India, dated 28th January, 2016, two-part Tariff
featuring separate fixed and variable charges shall be
introduced for all consumers. In order to ensure their financial
viability, it is imperative that the fixed expenditure incurred by the
ESCOMs are recovered in the form of fixed charges. On a study
of the existing rate of fixed charges levied on the consumers and
the amount collected thereon, it is observed that fixed charges
needs to be increased gradually to meet the above objective”.
In pursuance of the above, the Commission has again reviewed the
status of recovery of fixed charges while revising the tariff for FY18. The
fixed costs to be incurred by CESC to supply power to its consumers for
FY18, consists of the following components:
Activity Total Fixed Cost to be
incurred -Rs. Crs.
Generation 381.28
Transmission including SLDC charges 414.78
Distribution network cost 468.12
Total Fixed cost of CESC 1264.18
cxv
The approved Net ARR of CESC is Rs. 5861.48 Crores out of which,
RS.1264.18 Crores is towards fixed cost. As per the existing Revenue rates,
CESC recovers an amount of Rs. 281.82 Crores towards the fixed cost,
which accounts for recovery of 22.29% of the fixed cost, incurred by the
CESC.
Since the Commission has decided to increase the FC year on year
gradually, an increase ranging between Rs. 10 to Rs.20 has been
considered while approving the tariff to various categories of consumers.
The details of the actual increase is indicated in the tariff schedule of
each of the consumer categories.
iv) Introduction of morning peak from 6 AM to 10 AM under ToD billing:
In respect of HT consumers, the some of the ESCOMs have filed the
proposed to introduce ToD billing for morning peak between 6 AM to
10AM in addition to the prevailing ToD billing for usage of energy during
evening peak (6 p.m. to 10 p.m.) and not allow and incentive for off
peak usage (during night hours) against the existing rate of Rs.1.25 per
unit.
ESCOMs have submitted that the ToD billing is to encourage the HT
consumers to shift their load from peak hours to non-peak hours by
incentivising them and also to levy a penalty to discourage usage of
energy during peak hours. They have cited the examples of Delhi,
Mumbai and Gujarat where ToD billing is prevailing for both morning and
evening peak usage as compared to the State’s single ToD billing for
evening peak usage. The off peak incentive helps in shifting the load
curve to night hours which is helpful for optimum power generation
during night hours.
Consumers across the State have opposed this proposal and have
requested the Commission to make the ToD billing optional instead of
making it mandatory.
The Commission has examined the issue in detail. It is found that during
most part of the year, the morning peak usage is higher than the
evening peak usage. In the absence of penal charges during the
morning peak, the tendency to use the power in the morning peak is
cxvi
more as compared to the evening peak. The system of ToD billing for
morning peak is also prevalent in the States referred to above. Hence,
the Commission decides to introduce ToD billing in respect of HT
consumers for morning peak between 6 AM to 10AM in addition to the
prevailing ToD billing for usage of energy during evening peak (6 p.m. to
10 p.m.) and also to reduce the incentive for off-peak usage (during
night hours) to Rs.1/ per unit as against the existing rate of Rs.1.25 per
unit. The necessary changes in the ToD billing are indicated in the
respective Tariff schedule of the HT Consumers, in this Tariff Order.
6.5 Revenue at existing tariff and deficit for FY18:
The Commission in its preceding Chapters has decided to carry forward
the gap in revenue of Rs.281.54 Crores of FY16 to the ARR of FY18. The
gap in revenue for FY18 is proposed to be filled up by revision of Retail
Supply Tariff, as discussed in the following paragraphs of this Chapter.
Considering the approved ARR for FY18 and the revenue as per the
existing tariff, the gap in revenue for FY18 is as follows:
TABLE – 6.1
Revenue Deficit for FY18
Amount Rs. in Crores
Particulars Amount
Approved Net ARR for FY18 including gap of FY16 3621.58
Revenue at existing tariff 3340.04
Surplus / (- )Deficit (281.54)
Additional Revenue to be realised by Revision of
Tariff
281.54
Accordingly, in this Chapter, the Commission has proceeded to
determine the Revised Retail Supply Tariff for FY18. The category-wise
tariff as existing, as proposed by CESC and as approved by the
Commission are as follows:
1. LT-1 Bhagya Jyothi:
The existing tariff and the tariff proposed by CESC are given below:
Sl. Details Existing as per 2016 Proposed by CESC
cxvii
No Tariff Order
1 Energy charges
(including recovery
towards service main
charges)
567 Paise / Unit Subject
to a monthly minimum
of Rs.30 per installation
per month.
715 Paise / Unit Subject
to a monthly minimum
of Rs.30 per installation
per month.
Commission’s Views/ Decision
The Government of Karnataka has continued its policy of providing free
power to all BJ/KJ consumers with a single outlet, whose consumption is
not more than 40 units per month vide Government Order No. EN12 PSR
2017 dated 20th March, 2017 (instead of the earlier limit of 18 units per
month). Based on the present average cost of supply, the tariff payable
by these BJ/KJ consumers is revised to Rs.6.18 per unit.
Further, the ESCOMs have to claim subsidy for only those consumers who
consume 40 units or less per month per installation. If the consumption
exceeds 40 units per month or if any BJ/KJ installation is found to have
more than one out- let, it shall be billed as per the Tariff Schedule LT 2(a).
The Commission determines the tariff (CDT) in respect of BJ / KJ
installations of CESC as follows:
LT – 1 Approved Tariff for BJ / KJ installations
Commission determined Tariff Retail Supply Tariff
determined by the
Commission
618 paise per unit,
Subject to a monthly minimum of
Rs.30 per installation per month.
-Nil-*
Fully subsidized by GoK
*Since GOK is meeting the full cost of supply to BJ / KJ, the Tariff
payable by these Consumers is shown as nil. However, if the GOK
does not release the subsidy in advance, a Tariff of Rs.6.18 per unit
subject to a monthly minimum of Rs.30 per installation per month,
shall be demanded and collected from these consumers.
cxviii
2. LT2 - Domestic Consumers:
CESC’s Proposal:
The details of the existing and proposed tariff under this category are
given in the Table below:
Proposed Tariff for LT-2 (a)
LT-2 a (i) Domestic Consumers Category
Applicable to areas coming under City Municipal Corporations and all
Urban Local Bodies
Details Existing as per 2016 Tariff Order Proposed by CESC
Fixed Charges per
Month
For the first KW Rs.30 For the first KW Rs.30
For every additional KW Rs.40 For every additional KW
Rs.40
Energy Charges
0-30 units
(life line
Consumption )
0 to 30 units:300 paise/unit 0 to 30 units: 448 paise/unit
Energy Charges
exceeding 30 units
per month
31 to 100 units:440 paise/unit 31 to 100 units: 588 paise
/ unit
101 to 200 units:590 paise
/unit
101 to 200 units:738 paise
/unit
Above 200 units:690paise
/unit
Above 200 units:838paise
/unit
LT-2(a)(ii) Domestic Consumers Category
Applicable to Areas under Village Panchayats
Details Existing as per 2016 Tariff Order
Proposed by CESC
Fixed charges per
Month
For the first KW Rs.20 For the first KW Rs.20
For every additional KW
Rs.30
For every additional
KW Rs.30
Energy Charges
0-30 units ( life line
Consumption )
Upto 30 units:290 paise
/unit
0 to 30 units:438 paise
/unit
Energy Charges
exceeding 30
Units per month
31 to 100 units:410 paise
/ unit
31 to 100 units:558 paise
/ unit
101 to 200 units: 560 paise
/unit
101 to 200 units: 708 paise
/unit
Above 200 units: 640 paise
/unit
Above 200 units:788 paise
/unit
Commission’s decision
The Commission decides to continue with the two tier tariff structure in
respect of the domestic consumers as shown below:
cxix
(i) Areas coming under City Municipal Corporations and all Urban Local
Bodies.
(ii) Areas under Village Panchayats.
The Commission approves the tariff for this category as follows:
Approved Tariff for LT 2 (a) (i) Domestic Consumers Category:
Applicable to Areas coming under City Municipal Corporations and all
Urban Local Bodies
Details Tariff approved by the
Commission
Fixed charges per Month For the first KW: Rs.40/-
For every additional KW Rs.50/-
Energy Charges up to 30 units per
month (0-30 units)-life line consumption.
Upto 30 units: 325paise/unit
Energy Charges in case the
consumption exceeds 30 units per
month
31 to 100 units:470 paise/unit
101 to 200 units:625 paise/unit
Above 200 units: 730 paise/unit
Approved Tariff for LT-2(a) (ii) Domestic Consumers Category:
Applicable to Areas under Village Panchayats
Details Tariff approved by the Commission
Fixed Charges per Month For the first KW: Rs.25/-
For every additional KW Rs.40/-
Energy Charges up to 30
units per month (0-30 Units)-
Lifeline Consumption
Up to 30 units: 315 paise/unit
Energy Charges in case the
consumption exceeds 30
units per month
31 to 100 units: 440 paise/unit
101 to 200 units:595paise/unit
Above 200 units: 680 paise/unit
LT2 (b) Private and Professional Educational Institutions & Private Hospitals
and Nursing Homes:
CESC’s Proposal:
The details of the existing and the proposed tariff by CESC under this
category are given in the Table below:
LT 2 (b) (i)Applicable to areas under City Municipal Corporations Areas
and all urban Local Bodies
cxx
Details Existing as per 2016 Tariff Order Proposed by CESC
Fixed
Charges per
Month
Rs.45 Per KW subject to a
minimum of Rs.75 per month
Rs.45 Per KW subject to a
minimum of Rs.75 per
month
Energy
Charges
For the first 200 units 625
paise per unit
For the first 200 units 773
paise per unit
Above 200 units 745 paise per
unit
For the balance units 893
paise per unit
LT 2 (b)(ii) Applicable to Areas under Village Panchayats
Details Existing as per 2016 Tariff
Order
Proposed by CESC
Fixed
Charges per
Month
Rs.35 per KW subject to a
minimum of Rs.60 per Month
Rs.35 per KW subject to a
minimum of Rs.60 per Month
Energy
Charges
For the first 200 units: 570
paise per unit
For the first 200 units:718
paise per unit
Above 200 units: 690 paise
per unit
For the balance units:838
paise per unit
Commission’s decision
As in the previous Tariff Order the Commission decides to continue the
two tier tariff structure as follows:
(i) Areas coming under City Municipal Corporation and all urban local
bodies.
(ii) Areas under Village Panchayats.
Approved Tariff for LT 2 (b) (i)
Private Professional and other private Educational Institutions, Private
Hospitals and Nursing Homes
Applicable to areas under City Municipal Corporations and all other
urban Local Bodies.
Details Tariff approved by the Commission
Fixed Charges per Month Rs.55 per KW subject to a minimum of Rs.85
per Month
Energy Charges 0-200 units: 650 paise/unit
Above 200 units: 775 paise/unit
Approved Tariff for LT 2 (b) (ii)
Private Professional and other private Educational Institutions, Private
Hospitals and Nursing Homes
Applicable in Areas under Village Panchayats
Details Tariff approved by the Commission
Fixed Charges per Month Rs.45 per KW subject to a minimum of Rs.70 per
cxxi
Month
Energy Charges 0-200 units: 595 paise/unit
Above 200 units: 720 paise/unit
3. LT3- Commercial Lighting, Heating& Motive Power:
CESC’s Proposal:
The existing and proposed tariff are as follows:
LT- 3 (i) Commercial Lighting, Heating& Motive Power
Applicable to Areas coming under City Municipal Corporation and
urban local bodies
Details Existing as per 2016 Tariff
Order
Proposed by CESC
Fixed charges per
Month
Rs.50 per KW Rs.50 per KW
Energy Charges For the first 50 units:715
paise per unit
For the first 50 units:863paise
per unit
For the balance units:815
paise per unit
For the balance units: 963
paise per unit
Demand based tariff (optional) where sanctioned load is above 5 KW but
below 50 KW.
Details Existing as per 2016 Tariff Order Proposed by CESC
Fixed
charges
Rs.65 per KW Rs.65 per KW
Energy
Charges
For the first 50 units:715paise
per unit
For the first 50 units:863paise
per unit
For the balance units:815 paise
per unit
For the balance units:963
paise per unit
LT-3 (ii) Commercial Lighting, Heating & Motive
Applicable to areas under Village Panchayats
Details Existing as per 2016 Tariff
Order
Proposed by CESC
Fixed Charges per
Month
Rs.40 per KW Rs.40 per KW
Energy Charges For the first 50 units:665paise
per unit
For the first 50 units:813
paise per unit
For the balance
units:765paise per unit
For the balance
units:913paise per unit
Demand based tariff (optional) where sanctioned load is above 5 KW but
below 50 KW
Details Existing as per 2016 Tariff Proposed by CESC
cxxii
Order
Fixed Charges
per Month
Rs.55 per KW Rs.55 per KW
Energy Charges For the first 50
units:665paise per unit
For the first 50 units:813
paise per unit
For the balance units:765
paise per unit
For the balance
units:913 paise per unit
Commission’s Views/ Decision
As in the previous Tariff Order, the Commission decides to continue with
the two tier tariff structure as below:
(i) Areas coming under City Municipal Corporations and other urban
local bodies.
(ii) Areas under Village Panchayats.
Approved Tariff for LT- 3 (i)Commercial Lighting, Heating& Motive
Applicable to areas under City Municipal Corporations and other Urban
Local Bodies
Details Approved by the Commission
Fixed Charges per Month Rs.60 per KW
Energy Charges For the first 50 units: 750 paise/ unit
For the balance units: 850 paise/unit
Approved Tariff for Demand based tariff (Optional) where sanctioned
load is above 5 kW but below 50 kW
Details Approved by the Commission
Fixed Charges per
Month
Rs.75 per KW
Energy Charges For the first 50 units:750paise /unit
For the balance units:850 paise/unit
Approved Tariff for LT-3 (ii) Commercial Lighting, Heating and Motive Applicable to areas under Village Panchayats
Details Approved by the Commission
Fixed charges per
Month
Rs.50 per KW
Energy Charges For the first 50 units: 700 paise per unit
For the balance units: 800 paise per unit
Approved Tariff for Demand based tariff (Optional)where sanctioned
load is above 5 kW but below 50 kW
Details Approved by the Commission
Fixed Charges per
Month
Rs.65 per KW
cxxiii
Energy Charges For the first 50 units: 700 paise per unit
For the balance units: 800 paise per unit
4. LT4-Irrigation Pump Sets:
CESC’s Proposal:
The existing and proposed tariff for LT4 (a) are as follows:
LT-4 (a) Irrigation Pump Sets
Applicable to IP sets upto and inclusive of 10 HP
Details Existing as per 2016 Tariff
Order
Proposed by CESC
Fixed charges per
Month
Nil Nil
Energy charges CDT 488 paise per unit Free (In case GoK does not
release the subsidy in
advance, CDT of 636 paise
per unit will be demanded
and collected from
consumers)
Commission’s Decision
The Government of Karnataka has extended free supply of power to
farmers as per Government Order No. EN 55 PSR 2008 dated 04.09.2008.
As per this policy of GoK, the entire cost of supply to IP sets up to and
inclusive of 10 HP is being borne by the GoK through tariff subsidy. In view
of this, all the consumers under the existing LT-4(a) tariff are covered
under free supply of power.
Considering the cross subsidy contribution from categories other than IP
Sets and BJ/KJ Categories, the Commission determines the tariff for IP
Sets under LT4(a) category as follows:
Approved CDT for IP Sets for FY18
Particulars CESC
Approved ARR in Rs. Crore 3621.58
Revenue from other than IP & BJ/KJ
installations in Rs. Crore 2276.76
Amount to be recovered from IP & BJ/KJ
installations in Rs. Crore 1344.82
Approved Sales to BJ/KJ installations in MU 106.17
Revenue from BJ/KJ installations at
Average Cost of supply in Rs. crore 65.51
Amount to be recovered from IP Sets
category in Rs. crore 1279.31
cxxiv
Approved Sale to IP Sets in MU 2386.77
Commission Determined Tariff (CDT) for IP
set Category for FY18 in Rs/Unit 5.36
Accordingly, the Commission decides to approve tariff of Rs.5.36 per unit
as CDT for FY18 for IP Set category under LT4 (a). In case the GoK does
not release the subsidy in advance, a tariff of Rs.5.36 per unit shall be
demanded and collected from these consumers.
Approved by the Commission
LT-4 (a) Irrigation Pump Sets
Applicable to IP sets up to and inclusive of 10 HP
Details Approved by the Commission
Fixed charges per Month
Energy charges
Nil*
CDT (Commission Determined Tariff):
536 paise per unit
* In case the GoK does not release the subsidy in advance, a tariff of
Rs.5.36 per unit shall be demanded and collected from these
consumers.
The Commission has been issuing directives to ESCOMs for conducting
Energy Audit at the Distribution Transformer Centre (DTC)/feeder level for
properly assessment of distribution losses and to enable detection and
prevention of commercial loss. In view of substantial progress in
implementation of feeder segregation under NJY scheme, the ESCOMs
were also directed to submit IP set consumption on the basis of the
meter readings of the 11 kV feeders at the substation level duly
deducting the energy losses in 11kV lines, distribution transformers & LT
lines, in order to compute the consumption of power by IP sets
accurately. Further, in the Tariff Order 2016, the ESCOMs were also
directed to take up enumeration of IP sets, 11 KV feeder-wise by
capturing the GPS co-ordinates of each live IP set in their
jurisdiction. In this regard, the Commission has noted that the ESCOMs
have complied partly with these directions and they have initiated
measures to achieve full compliance. The ESCOMs need to ensure full
compliance as this has direct impact on their revenues and tariff
payable by other categories of consumers.
cxxv
For the forgoing reasons, the Commission directs the ESCOMs as follows:
The ESCOMs shall manage supply of power to the IP sets for the FY18, so
as to ensure that it is within the quantum of subsidy committed by the
GoK. They shall procure power which is proportional to such supply. In
case the ESCOMs opt to supply power to the IP sets in excess of the
quantum corresponding to the amount of subsidy the GoK has assured to
be released for FY18, the difference in the amount of subsidy relating to
such supply shall be claimed from the GoK. If the difference in subsidy is
not paid by the GoK, the same has to be collected from the IP set
consumers.
LT4 (b) Irrigation Pump Sets above 10 HP:
CESC’s Proposal
The Existing and proposed tariff for LT-4(b) are as follows:
LT-4 (b) Irrigation Pump Sets:
Applicable to IP Sets above 10 HP
Details Existing as per 2016 Tariff
Order
Proposed by CESC
Fixed charges per
Month
Rs.40 per HP Rs.40 per HP
Energy charges for
the entire
consumption
280 paise per unit 428 paise per unit
The existing and proposed tariff for LT4(c) are as follows:
LT-4 (c) (i) - Applicable to Private Horticultural Nurseries, Coffee, Tea
& Rubber plantations up to & inclusive of 10 HP
Details Existing as per 2016 Tariff
Order
Proposed by CESC
Fixed charges per
Month
Rs.30 per HP Rs.30 per HP
Energy charges for
the entire
consumption
280 paise per unit 428 paise per unit
LT-4 (c) (ii) - Applicable to Private Horticultural Nurseries, Coffee, Tea &
Rubber plantations above 10 HP
Details Existing as per 2016 Tariff
Order
Proposed by CESC
cxxvi
Fixed charges per
Month
Rs.40 per HP Rs.40 per HP
Energy charges for
the entire
consumption
280paise per unit 428paise per unit
Approved Tariff:
The Commission decides to revise the tariff in respect of these categories
as shown below:
LT-4 (b) Irrigation Pump Sets:
Applicable to IP Sets above 10 HP
Fixed charges per Month Rs.50 per HP
Energy charges for the entire
consumption
300 paise/unit
LT4(c) (i) - Applicable to Horticultural Nurseries,
Coffee, Tea &Rubber plantations up to & inclusive of 10 HP
Fixed charges per Month Rs.40 per HP
Energy charges 300 paise / unit
LT4 (c)(ii) - Applicable to Horticultural Nurseries, Coffee, Tea& Rubber
plantations above 10 HP
Fixed charges per Month Rs.50 per HP
Energy charges 300 paise/unit
5. LT5 Installations-LT Industries:
CESC’s Proposal:
The existing and proposed tariffs are given below:
LT-5 (a) LT Industries:
Applicable to areas under City Municipal Corporation
i) Fixed charges
Details Existing as per 2016 Tariff Order Proposed by CESC
Fixed
charges
per Month
i) Rs. 30 per HP for 5 HP & below
ii) Rs. 35 per HP for above 5 HP
& below 40 HP
iii) Rs. 40 per HP for 40 HP &
above but below 67 HP
iv)Rs. 100 per HP for 67 HP &
above
i) Rs. 30 per HP for 5 HP & below
ii) Rs. 35 per HP for above 5 HP &
below 40 HP
iii) Rs. 40 per HP for 40 HP &
above but below 67 HP
iv)Rs. 100 per HP for 67 HP &
above
cxxvii
Demand based Tariff (Optional)
Details Description Existing Tariff as per
2016 Tariff Order
Proposed by
CESC
Fixed
Charg
es per
Month
Above 5 HP and less
than 40 HP
Rs.50 per KW of billing
demand
Rs.50 per KW of
billing demand
40 HP and above but
less than 67 HP
Rs.65 per KW of billing
demand
Rs.65 per KW of
billing demand
67 HP and above Rs.150 per KW of
billing demand
Rs.150 per KW of
billing demand
ii) Energy Charges
Details Existing as per 2016
Tariff Order
Proposed by CESC
For the first 500 units 495 paise per unit 643 paise/ unit
For next 500 units 585 paise per unit 733 paise /unit
For the balance unit 615 paise per unit 763 paise /unit
LT-5 (b) LT Industries:
Applicable to all areas other than those covered under LT-5(a)
i) Fixed charges
Demand based Tariff (optional)
Details Description Existing Tariff as per
2016 Tariff Order
Proposed by CESC
Fixed Charges per Month
Above 5 HP and
less than 40 HP
Rs.50 per KW of
billing demand
Rs.50 per KW of
billing demand
40 HP and above
but less than 67 HP
Rs.65 per KW of
billing demand
Rs.65 per KW of
billing demand
67 HP and above Rs.150 per KW of
billing demand
Rs.150 per KW of
billing demand
Details Existing as per 2016 Tariff Order Proposed by CESC
Fixed Charges per Month
i)Rs.30 per HP for 5 HP &
below
ii) Rs.35 per HP for above 5 HP &
below 40 HP
iii) Rs.40 per HP for 40 HP &
above but below 67 HP
iv)Rs.100 per HP for 67 HP &
above
i) Rs.30 per HP for 5 HP &
below
ii) Rs.35 per HP for above 5
HP & below 40 HP
iii) Rs.40 per HP for 40 HP &
above but below 67 HP
iv)Rs.100 per HP for 67 HP &
above
cxxviii
ii) Energy Charges
Details Existing as per 2016 Tariff
Order
Proposed by CESC
For the first 500 units 485 paise per unit 633 paise/ unit
For the next 500 units 570 paise per unit 718 paise/ unit
For the balance units 600 paise per unit 748 paise/ unit
Existing ToD Tariff for LT5 (a) & (b): At the option of the consumers
ToD Tariff
Time of Day Increase (+ )/ reduction (-) in energy
charges over the normal tariff applicable
22.00 Hrs to 06.00 Hrs (-) 125 paise per unit
06.00 Hrs to 18.00 hrs 0
18.00 Hrs to 22.00 Hrs (+) 100 paise per unit
Proposed ToD Tariff for LT5 (a) & (b): At the option of the consumers
ToD Tariff
Time of Day Increase (+ )/ reduction (-) in energy
charges over the normal tariff applicable
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 hrs (+) 225 paise per unit
22.00 Hrs to 06.00 Hrs (-) 175 paise per unit
Commission’s Decision:
Time of the Day Tariff:
The decision of the Commission in its earlier Tariff Orders, providing for
mandatory Time of Day Tariff for HT2(a), HT2(b) and HT2(c) consumers
with a contract demand of 500 KVA and above is continued. The
optional ToD will continue as existing for HT2(a), HT2(b) and HT2(c)
consumers with contract demand of less than 500 KVA. Further, for LT5
and HT1 consumers, the optional ToD is continued as existing.
The Commission has decided to continue with two tier tariff structure
introduced in the previous Tariff Orders, which are as follows:
i) LT5 (a): For areas falling under City Municipal Corporations
ii) LT5 (b): For areas other than those covered under LT5 (a) above.
Approved Tariff:
The Commission approves the tariff under LT 5 (a) and LT 5 (b) as given
below:
cxxix
Approved Tariff for LT 5 (a):
Applicable to areas under City Municipal Corporations
i) Fixed charges
Details Approved by the Commission
Fixed
Charges per
Month
i) Rs.40 per HP for 5 HP & below
ii) Rs.45 per HP for above 5 HP & below 40 HP
iii) Rs.60 per HP for 40 HP & above but below 67 HP
iv) Rs.120 per HP for 67 HP & above
Demand based Tariff (optional)
Fixed
Charges per
Month
Above 5 HP and less than 40
HP
Rs.60 per KW of billing
demand
40 HP and above but less
than 67 HP
Rs.85 per KW of billing
demand
67 HP and above Rs.170 per KW of billing
demand
ii) Energy Charges
Details Approved by the Commission
For the first 500 units 510 paise/unit
For the next 500 units 605 paise/ unit
For the balance units 635 paise/ unit
Approved Tariff for LT 5 (b):
Applicable to all areas other than those covered under LT-5(a)
i) Fixed charges
Details Approved Tariff
Fixed
Charges
per Month
i) Rs.35 per HP for 5 HP & below
ii) Rs.40 per HP for above 5 HP & below 40 HP
iii) Rs.55 per HP for 40 HP & above but below 67 HP
iv)Rs.110 per HP for 67 HP & above
ii) Demand based Tariff (optional)
Details Description Approved Tariff
Fixed Charges per
Month
Above 5 HP and
less than 40 HP
Rs.55 per KW of billing
demand
40 HP and above
but less than 67 HP
Rs.80 per KW of billing
demand
67 HP and above Rs.160 per KW of billing
demand
iii) Energy Charges
Details Approved tariff
cxxx
For the first 500 units 500 paise/ unit
For the next 500 units 590 paise/ unit
For the balance units 620 paise/unit
As discussed earlier in this Chapter, the approved ToD Tariff for LT5 (a) &
(b): At the option of the consumers
ToD Tariff
Time of Day Increase (+ )/ reduction (-) in energy
charges over the normal tariff applicable
06.00 Hrs to 10.00 Hrs (+) 100 paise per unit
10.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 hrs (+) 100 paise per unit
22.00 Hrs to 06.00 Hrs (-) 100 paise per unit
6. LT6 Water Supply Installations and Street Lights:
CESC’s Proposal:
The existing and the proposed tariffs are given below:
LT-6(a) : Water Supply
Details Existing as per 2016 Tariff
Order
Proposed by CESC
Fixed charges per
Month
Rs.45/HP/month Rs.45/HP/month
Energy charges 390 paise/unit 538 paise/unit
LT-6 (b) : Public Lighting
Details Existing as per 2016 Tariff
Order
Proposed by CESC
Fixed charges
per Month
Rs.60/KW/month Rs.60/KW/month
Energy charges
without LED bulbs
550 paise/unit 698 paise/unit
Energy charges
for LED /
Induction
450 paise/unit 598 paise/unit
The Commission approves the tariff for these categories are as follows:
Tariff Approved by the Commission for LT-6 (a): Water supply
Details Approved Tariff
Fixed Charges per
Month
Rs.55/HP/month
Energy charges 425 paise/unit
cxxxi
Tariff Approved by the Commission for LT-6 (b): Public Lighting
Details Approved Tariff
Fixed charges per
Month
Rs.70 /KW/month
Energy charges 585 paise/unit
Energy charges for LED
/ Induction Lighting
485 paise/unit
7. LT 7- Temporary Supply & Permanent supply to Advertising Hoardings:
CESC’s Proposal:
The existing rate and the proposed rate are given below:
Tariff Schedule LT-7(a) Applicable to Temporary power Supply for all purposes.
a) Less than 67
HP:
Energy charge at 950
paise per unit subject
to a weekly minimum
of Rs.170 per KW of
the sanctioned load.
Energy charge at 1098 paise
per unit subject to a weekly
minimum of Rs.170 per KW of
the sanctioned load.
TARIFF SCHEDULE LT-7(b)
Applicable to power supply to Hoardings & Advertisement boards
on Permanent connection basis.
a) Less than 67
HP:
Fixed Charge Rs.50
per KW/ month of the
sanctioned load.
Fixed Charge Rs.50 per KW/
month of the sanctioned load.
Energy charge at 950
paise per unit
Energy charge at 1098 paise
per unit
Commission’s decision
As decided in the previous Tariff Order, the tariff specified for installations
with sanctioned load / contract demand above 67 HP shall be covered
under the HT temporary tariff category under HT5.
With this, the Commission decides to approve the tariff for LT-7 category
as follows:
Details Existing as per 2016
Tariff Order
Proposed by CESC
Details Existing as per 2016
Tariff Order
Proposed by CESC
cxxxii
TARIFF SCHEDULE LT-7(a)
Applicable to Temporary Power Supply for all purposes.
LT 7(a) Details Approved Tariff
Temporary Power
Supply for all
purposes.
Less than 67 HP:
Energy charges at 1000 paise / unit
subject to a weekly minimum of Rs.190
per KW of the sanctioned load.
TARIFF SCHEDULE LT-7(b)
Applicable to Hoardings & Advertisement boards, Bus Shelters with
Advertising Boards, Private Advertising Posts / Sign boards in the interest
of public such as Police Canopy Direction boards, and other sign boards
sponsored by Private Advertising Agencies / firms on permanent
connection basis.
[
LT 7(b) Details Approved Tariff
Power supply on
permanent
connection basis
Less than 67 HP:
Fixed Charges at Rs.60 per KW / month
Energy charges at 1000 paise / unit
H.T. Categories:
Time of Day Tariff (ToD)
The Commission decides to continue the mandatory Time of Day Tariff
for HT2 (a), HT-2(b) and HT2(c) consumers with a contract demand
of 500 KVA and above. Further, the optional ToD will continue as
existing for HT2 (a), HT-2(b) and HT2 (c) consumers with contract demand
of less than 500 KVA. The details of ToD tariff are indicated under the
respective tariff category.
8. HT1- Water Supply & Sewerage
CESC’s Proposal:
The existing and proposed tariff are as given below:
The Existing and the proposed tariff – HT-1 Water Supply and Sewerage
Installations
Sl.
No.
Details Existing tariff as per
2016 Tariff Order
Proposed Tariffs by CESC
dated 31.11.2016
1 Demand
charges
Rs.190 / kVA of billing
demand / month
Rs.190 / kVA for billing
demand / month
cxxxiii
2 Energy charges 450 paise per unit 598 paise per unit
Existing ToD tariff to HT-1 tariff to Water Supply & Sewerage installations at the option of the consumer
22.00 Hrs to 06.00 Hrs next day (-) 125 Paise per unit
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs (+) 100 Paise per unit
Proposed ToD Tariff to HT-1 category:
Time of day Increase (+) / reduction (-) in the energy
charges over the normal tariff applicable
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs (+) 225 Paise per unit
22.00 Hrs to 06.00 Hrs (-) 175 Paise per unit
Commission’s decision:
As discussed earlier in this chapter, the Commission approves the tariff for HT 1 Water Supply & Sewerage category as
below:
Details Approved Tariff for HT 1
Demand
charges
Rs.200 / kVA of billing demand / month
Energy charges 485 paise/ unit
As discussed earlier in this chapter, the approved ToD tariff to HT-1 tariff to
Water Supply & Sewerage installations at the option of the consumer is as
follows
06.00 Hrs. to 10.00 hours (+) 100 paise per unit
10.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs (+)100 paise per unit
22.00 Hrs to 06.00 Hrs next day (-) 100 paise per unit
9. HT2 (a) – HT Industries & HT 2(b) – HT Commercial
CESC’s Proposal:
The existing and proposed tariff are as given below:
Time of day Increase (+) / reduction (-) in the
energy charges over the normal tariff
applicable
Time of day Increase (+) / reduction (-) in the energy
charges over the normal tariff applicable
cxxxiv
HT – 2 (a) HT Industries
Applicable to all areas of CESC
Details Existing tariff as per Tariff
Order 2016
Proposed Tariff by CESC
dated 30.11.2016
Demand
charges
Rs. 180 / kVA of billing
demand / month
Rs. 180 / kVA of billing
demand / month
Energy charges
(i) For the first
one lakh
units
(ii) For the
balance
units
620 paise per unit
660 paise per unit
768 paise per unit
808 paise per unit
Railway traction and Effluent Plants under HT2 (a).
Details Existing tariff as per
Tariff order 2016
Tariff Proposed by CESC
dated 30.11.2016
Demand
charges
Rs. 190 / kVA at billing
demand / month
Rs. 190 / kVA of billing
demand / month
Energy charges 590paise per unit for
all the units
738 paise per unit for all
the units
Existing ToD Tariff for HT-2(a)
Time of day Increase (+) / reduction (-) in the energy
charges over the normal tariff applicable
22.00 Hrs to 06.00 Hrs next day (- )125 Paise per unit
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs (+) 100 Paise per unit
Proposed ToD Tariff for HT-2(a)
Time of day Increase (+) / reduction (-) in the energy
charges over the normal tariff applicable
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs (+) 225 Paise per unit
22.00 Hrs to 06.00 Hrs (-) 175 Paise per unit
Commission’s Decision:
Approved Tariff for HT – 2 (a):
As discussed earlier in this chapter, the Commission approves the tariff for HT 2(a) category as below:
i) Approved Tariff for HT2(a)
Applicable to all areas under CESC
Details Tariff approved by the Commission
Demand charges Rs.200 / kVA of billing demand / month
Energy charges
cxxxv
For the first one lakh units 660 paise/ unit
For the balance units 680 paise/ unit
As discussed earlier in this chapter, the approved ToD tariff to HT2(a)(i) & (ii)
tariff.
06.00 Hrs. to 10.00 hours (+) 100 paise per unit
10.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs (+)100 paise per unit
22.00 Hrs to 06.00 Hrs (-)100 paise per unit
ii) Railway Traction & Effluent Treatment Plants under both HT2(a)
Details Tariff approved by the Commission
Demand charges Rs. 210 / kVA of billing demand / month
Energy charges 620 paise / unit for all the units
10. HT-2 (b) HT Commercial
CESC’s Proposal:
The existing and proposed tariff are as given below:
Existing and proposed tariff HT – 2 (b) HT Commercial
Applicable to all areas of CESC
Details Existing tariff as per
Tariff Order 2016
Tariff Proposed by CESC
dated 30.11.2016
Demand charges Rs.200 / kVA of billing
demand / month
Rs.200 / kVA of billing
demand / month
Energy charges
(i) For the first two
lakh units
785paise per unit
933paise per unit
(ii)For the balance
units
815paise per unit 963paise per unit
Existing ToD Tariff for HT-2(b)
Time of day Increase (+) / reduction (-) in the energy
charges over the normal tariff applicable
22.00 Hrs to 06.00 Hrs next day (- )125 Paise per unit
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs (+) 100 Paise per unit
Time of day Increase (+) / reduction (-) in the energy
charges over the normal tariff applicable
cxxxvi
Proposed ToD Tariff for HT-2(b)
Time of day Increase (+) / reduction (-) in the energy
charges over the normal tariff applicable
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs (+) 225 Paise per unit
22.00 Hrs to 06.00 Hrs (-) 175 Paise per unit
Commission’s Decision
The Commission notes the issue raised by the consumer of Diagnostic
centres and their request to classify under HT-2(c)(ii) category. The
Commission has examined the issue in detail and decided to classify the
HT power supply to Diagnostic centres running on commercial lines
under HT-2(b) category.
As discussed earlier in this chapter, the Commission approves the
following tariff for HT 2 (b) consumers:
Approved tariff for HT – 2 (b) - HT Commercial
Applicable to all areas of CESC
Details Tariff approved by the Commission
Demand charges Rs.220 / kVA of billing demand / month
Energy charges
(i) For the first two lakh units 825 paise per unit
(ii) For the balance units 835 paise per unit
Note: The above tariff under HT2 (b) is not applicable for construction of new
industries. Such power supply shall be availed only under the temporary
category HT5.
Approved ToD Tariff for HT-2(b)
06.00 Hrs. to 10.00 hours (+) 100 paise per unit
10.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs (+)100 paise per unit
22.00 Hrs to 06.00 Hrs next day (-)100 paise per unit
Time of day Increase (+) / reduction (-) in the energy
charges over the normal tariff applicable
cxxxvii
11. HT – 2 (c) – Applicable to Hospitals and Educational Institutions:
The existing and proposed tariff are given below:
Existing and proposed tariff for HT – 2 (c) (i)
Applicable to Government Hospitals & Hospitals run by Charitable Institutions & ESI
Hospitals
and
Universities, Educational Institutions belonging to Government, Local Bodies and Aided
Institutions and Hostels of all Educational Institutions
Details Existing tariff as per Tariff
Order 2016
Tariff Proposed by CESC
Demand charges Rs.180 / kVA of billing
demand / month
Rs.180 / kVA of billing
demand / month
Energy charges
(i) For the first one
lakh units
600 paise per unit 748 paise per unit
(ii) For the balance
units
650 paise per unit 798 paise per unit
Existing and proposed tariff for HT – 2 (c) (ii) –
Applicable to Hospitals and Educational Institutions other than those covered under
HT2(c) (i)
Details Existing tariff as per
Tariff Order 2016
Tariff Proposed by CESC
Demand charges Rs. 180 / kVA of billing
demand / month
Rs. 180 / kVA of billing
demand / month
Energy charges
(i) For the first one
lakh units
700 paise per unit 848paise per unit
(ii) For the balance
units
750 paise per unit 898paise per unit
Existing ToD Tariff for HT-2(c)(i) & (ii)
Time of day Increase (+) / reduction (-) in the energy
charges over the normal tariff applicable
22.00 Hrs to 06.00 Hrs next day (- )125 Paise per unit
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs (+) 100 Paise per unit
Proposed ToD Tariff for HT-2 HT-2(c)(i) & (ii)
Time of day Increase (+) / reduction (-) in the energy
charges over the normal tariff applicable
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs (+) 225 Paise per unit
22.00 Hrs to 06.00 Hrs (-) 175 Paise per unit
cxxxviii
Commission’s Decision:
The Commission approves the following tariff for HT2(c) consumers.
Approved tariff for HT – 2 (c) (i)
Applicable to Government Hospitals, Hospitals run by Charitable Institutions, ESI
Hospitals,
Universities and Educational Institutions belonging to Government& Local Bodies, Aided
Educational Institutions and Hostels of all Educational Institutions
Details Approved Tariff
Demand charges Rs.200/ kVA of billing demand / month
Energy charges
(i) For the first one lakh units 640 paise per unit
(ii) For the balance units 680 paise per unit
Approved tariff for HT – 2 (c) (ii)
Applicable to Hospitals/Educational Institutions other than those covered under HT2(c)
(i)
Details Approved Tariff
Demand charges Rs.200 / kVA of billing demand / month
Energy charges
(i) For the first one lakh units 740 paise per unit
(ii) For the balance units 780 paise per unit
As discussed earlier in this Chapter approved ToD for Tariff to HT-2(c) (i)
& (ii)
06.00 Hrs. to 10.00 hours (+) 100 paise per unit
10.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs (+)100 paise per unit
22.00 Hrs to 06.00 Hrs next day (-)100 paise per unit
12. HT-3(a) Lift Irrigation Schemes under Government Departments /
Government owned Corporations/ Lift Irrigation Schemes under Pvt.
Societies:
The existing and proposed tariff are given below:
Existing and proposed tariff for HT – 3 (a) –Lift Irrigation Schemes
HT 3(a) (i) Applicable to LI Schemes under Government Departments /
Government owned Corporations
Time of day Increase (+) / reduction (-) in the energy
charges over the normal tariff applicable
cxxxix
Details Existing charges as per Tariff
Order 2016
Proposed charges by
CESC
Energy
charges/
Minimum
charges
200 paise / unit
Subject to an annual minimum
of Rs.1120 per HP / annum
348 paise / unit
Subject to an annual
minimum of Rs. 1120
per HP / annum
HT 3(a) (ii) Applicable to Pvt. LI Schemes and Lift Irrigation Societies:
Fed through Express / Urban feeders
Details Existing Tariff as per Tariff
Order 2016
Proposed by CESC
Fixed charges Rs. 40 / HP / Month of
sanctioned load
Rs. 40 / HP / Month of
sanctioned load
Energy charges 200paise / unit 348 paise / unit
HT 3(a) (iii) Applicable to Pvt. LI Schemes and Lift Irrigation Societies:
other than those covered under HT-3 (a)(ii)
Details Existing Tariff as per Tariff
Order 2016
Proposed by CESC
Fixed charges Rs.20 / HP / Month of
sanctioned load
Rs.20 / HP / Month of
sanctioned load
Energy charges 200paise / unit 348paise / unit
Commission’s Decision:
The Commission approves the following tariff for HT 3(a) consumers:
Approved tariff for HT 3 (a) (i)
Applicable to LI schemes under Govt. Dept. / Govt. owned Corporations
Energy charges /
Minimum charges
225 paise/ unit subject to an annual
minimum of Rs. 1240 per HP / annum
Approved tariff for HT 3 (a) (ii)
Applicable to Private LI Schemes and Lift Irrigation Societies fed through
express / urban feeders
Fixed charges Rs.50 / HP / Month of sanctioned load
Energy charges 225 paise / unit
Approved tariff for HT 3 (a) (iii)
Applicable to Private LI Schemes and Lift Irrigation Societies other
than those covered under HT 3 (a) (ii)
Fixed charges Rs.30 / HP / Month of sanctioned load
Energy charges 225 paise / unit
cxl
13. HT3 (b) Irrigation & Agricultural Farms, Government Horticulture farms,
Private Horticulture Nurseries, Coffee, Tea, Coconut & Arecanut
Plantations:
CESC’s Proposal:
The existing and the proposed tariff are given below:
HT3 (b)- Irrigation & Agricultural Farms, Government Horticulture farms,
Private Horticulture Nurseries, Coffee, Tea, Coconut & Arecanut
Plantations:
Details Existing Tariff Order 2016 Proposed tariff by CESC
Energy charges /
minimum
charges
400 paise / unit subject to
an annual minimum of
Rs.1120 per HP of
sanctioned load
548 paise / unit subject to
an annual minimum of
Rs.1120 per HP of
sanctioned load
Commission’s Decision
The Commission approves the tariff for this category as indicated below:
Approved Tariff
HT3 (b)- Irrigation & Agricultural Farms, Government Horticulture farms,
Private Horticulture Nurseries, Coffee, Tea, Rubber, Coconut & Arecanut
Plantations:
Details Approved Tariff
Energy charges /
minimum charges
425 paise / unit subject to an
annual minimum of Rs.1240 per
HP of sanctioned load
14. HT4- Residential Apartments/ Colonies:
CESC’s Proposal:
The existing and the proposed tariff for this category are given below:
Existing and proposed tariff for HT – 4 - Residential Apartments/ Colonies
HT – 4 Applicable to all areas.
Details Existing Tariff Order 2016 Tariff Proposed by CESC
Demand charges Rs.110 / kVA of billing
demand
Rs.110 / kVA of billing
demand
Energy charges 585 paise per unit 733 paise/ unit
Commission’s Decision
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As discussed earlier in this chapter, the Commission approves the tariff
for this category as indicated below:
Approved tariff
HT – 4 Residential Apartments/ Colonies Applicable to all areas
Demand charges Rs.120 / kVA of billing demand
Energy charges 620 paise/ unit
15. TARIFF SCHEDULE HT-5
CESC’s Proposal:
The existing and the proposed tariffs are given below:
HT – 5 – Temporary supply
67 HP and above: Existing Proposed
Fixed charges /
Demand Charges
Rs.220/HP/month for the
entire sanction load /
contract demand
Rs.220/HP/month for the
entire sanction load /
contract demand
Energy Charge 950 paise / unit (weekly
minimum of Rs.170/- per
KW is not applicable)
1098 paise / unit (weekly
minimum of Rs.170/- per
KW is not applicable)
Commission’s Views/Decisions:
TARIFF SCHEDULE HT-5
(i) As approved in the Commission’s Tariff Order dated 6th May, 2013,
this Tariff is applicable to 67 HP and above hoardings,
advertisement boards and construction power for industries
excluding those category of consumers covered under HT2(b)
Tariff schedule availing power supply for construction power for
irrigation and power projects and also applicable to power supply
availed on temporary basis with the contract demand of 67 HP
and above of all categories.
Approved Tariff for HT – 5 – Temporary supply
67 HP and above: Approved Tariff
Fixed Charges /
Demand Charges
Rs.240 /HP/month for the entire sanction load /
contract demand
Energy Charges 1000 paise / unit
cxlii
The Approved Tariff schedule for FY18 is enclosed in Annex – IV of this
Order.
6.6 Wheeling and Banking Charges:
CESC in their tariff petition has furnished the following details on wheeling
charges:
Wheeling charges for FY-18
Distribution ARR-Rs. Crs. 566.46
Sales -MU 6506.22
Wheeling charges-paise/unit: 87.06
HT-Network @ 30% 26.12
LT-Network @ 70% 60.95
HT loss 4.22
LT loss 7.25
The Commission in its preliminary observations had noted that CESC at
page -65 of the petition has considered distribution ARR as Rs. 566.46 Crs
for computing wheeling charges for FY18. However, at Pg.95, the
distribution ARR was indicated as Rs. 790.74 Crs. for FY18. Therefore, the
Commission had directed CESC to reconcile the data and resubmit the
revised working for wheeling charges.
CESC in their replies to the preliminary observations has furnished the
revised wheeling charges for FY18 as indicated below:
Wheeling charges for FY-18
Distribution ARR-Rs. Crs. 790.74
Sales -MU 6506.22
Wheeling charges-paise/unit: 121.54
HT-Network @ 30% 36.46
cxliii
LT-Network @ 70% 85.08
HT loss 4.22
LT loss 7.25
The approach of the Commission regarding wheeling & banking charges
is discussed in the following paragraphs:
The Commission has considered the approved ARR pertaining to
distribution wires business and has proceeded determining the wheeling
charges as detailed below:
6.6.1 Wheeling within CESC Area:
The allocation of the distribution network costs to HT and LT networks for
determining wheeling charges is done in the ratio of 30:70, as was being
done earlier. Based on the approved ARR for distribution business, the
wheeling charges to each voltage level is worked out as under:
TABLE – 6.2
Wheeling Charges
Distribution ARR-Rs. Crs 466.60
Sales-MU 5861.48
Wheeling charges- paise/unit 79.60
Paise/unit
HT-network 23.88
LT-network 55.72
In addition to the above, the following technical losses are applicable to
all open access/wheeling transactions:
Loss allocation % loss
HT 4.25
LT 7.25 Note: Total loss is allocated to HT, LT & Commercial loss based on energy flow diagram furnished by CESC.
The actual wheeling charges payable (after rounding off) will depend
upon the point of injection & point of drawal as under:
cxliv
paise/unit
Injection point
Drawal point
HT LT
HT 24(4.25%) 80(11.50%)
LT 80(11.50%) 56(7.25%) Note: Figures in brackets are applicable loss
The wheeling charges as determined above are applicable to all the
open access or wheeling transactions for using the CESC’s network,
except for energy transmitted or wheeled from Renewable sources to
the consumers within the State.
6.6.2 WHEELING OF ENERGY USING TRANSMISSION NETWORK OR NETWORK OF
MORE THAN ONE LICENSEE
In case the wheeling of energy [other than RE sources wheeling to
consumers in the State] involves usage of Transmission network or
network of more than one licensee, the charges shall be as indicated
below:
i. If only transmission network is used, transmission charges
determined by the Commission shall be payable to the
Transmission Licensee.
ii. If the Transmission network and the ESCOMs’ network is used,
Transmission Charges shall be payable to the Transmission
Licensee. Wheeling Charges payable to the ESCOM where the
power is drawn shall be shared equally among the ESCOMs
whose networks are used.
Illustration:
If a transaction involves transmission network & CESC’s network and 100
units is injected, then at the drawal point the consumer is entitled for
85.52 units, after accounting for Transmission loss of 3.37% & CESC’s
technical loss of 11.50%.
The Transmission charge in cash as determined in the Transmission Tariff
Order shall be payable to KPTCL & Wheeling charge of 80 paise per unit
shall be payable to CESC. In case more than one ESCOM is involved the
above 80 paise shall be shared by all the ESCOMs involved.
cxlv
iii. If ESCOMs’ network only is used, the Wheeling Charges is payable
to the ESCOM where the power is drawn and shall be shared
equally among the ESCOMs whose networks are used.
Illustration:
If a transaction involves injection to BESCOM’S network & drawal at
CESC’s network, and 100 units is injected, then at the drawal point, the
consumer is entitled for 88.50 units, after accounting CESC’s technical
loss of 11.50%.
The Wheeling charge of 80 paise per unit payable to CESC shall be
equally shared between CESC& BESCOM.
6.6.3 CHARGES FOR WHEELING OF ENERGY BY RE SOURCES (NON-REC ROUTE)
TO CONSUMERS IN THE STATE
The separate Orders issued by the Commission from time to time in the
matter of wheeling and banking charges for RE sources (non-rec route)
wheeling energy to consumers in the State shall be applicable.
6.6.4 CHARGES FOR WHEELING ENERGY BY RE SOURCES FROM THE STATE TO A
CONSUMER/OTHERS OUTSIDE THE STATE AND FOR THOSE OPTING FOR
RENEWABLE ENERGY CERTIFICATE[REC]
In case the renewable energy is wheeled from the State to a consumer
or others outside the State, the normal wheeling charges as determined
in para 6.6.1 and 6.6.2 of this Order shall be applicable. For Captive RE
generators including solar power projects opting for RECs, the wheeling
and banking charges as specified in the Orders issued by the
Commission from time to time shall be applicable.
6.6.5 BANKING CHARGES AND ADDITIONAL SURCHARGE
The Commission notes that all the ESCOMs except CESC, have filed
separate petitions seeking modifications to the existing banking facility.
Further, all the ESCOMs have filed petitions separately to introduce
additional surcharge. The above issues pertaining to banking facility and
additional surcharge are being dealt separately by the Commission in
those petitions. Till such time the Orders are passed in those petitions, the
cxlvi
existing banking facility shall be continued and no additional surcharge
is payable.
6.7 CROSS SUBSIDY SURCHARGE [CSS]:
CESC in its tariff petition has worked out the Cross Subsidy surcharge as
per the Tariff Policy-2016 and has worked out the surcharges as
indicated below at the proposed tariff:
Paise/unit
Voltage
Level
HT-1 HT-2a HT-2b HT-2C HT-3b HT-4 HT-5
66kV &
above
127.57 168.39 213.21 174.40 58.52 154.28 352.61
HT level-
33kV/11kV
98.92 168.39 213.21 174.40 9.06 154.28 352.61
The determination of cross subsidy surcharge by the Commission is
discussed in the following paragraphs: -
The Commission in its MYT Regulations has specified the methodology for
calculating the CSS as per Tariff Policy 2006. Meanwhile, the Central
Government has issued the new Tariff Policy 2016, wherein a revised
methodology has been specified for determining CSS. So far the
Commission, for determining the CSS had adopted the methodology
specified in the earlier Tariff Policy of 2006. However, considering that
such Tariff Policy has been replaced now by the Tariff Policy-2016 and
that a few ESCOMs including CESC have sought determination of CSS
under such new Tariff Policy, the Commission decides to adopt the
methodology specified in the latest Tariff Policy 2016 for determination of
CSS in this Tariff Order for FY18. Action shall be taken to amend the
relevant Regulations for adoption of the revised methodology for
determination of CSS. Based on this methodology, the category- wise
cross subsidy will be as indicated below:
Paise/unit
Particulars Category
Tariff
Average
Cost of
supply @
66 kV and
above
level*
Average
Cost of
supply at HT
level**
Cross subsidy
surcharge
paise/unit @ 66
kV & above
level as per
formula
Cross
subsidy
surcharge
paise/unit @
HT level as
per formula
20% of
tariff
payable
by
relevant
category
1 2 3 4 8 9 10
HT-1
Water
Supply
536.76 410.53 445.45 126.23 91.32 107.35
HT-2a
Industries 762.23
410.53 445.45 351.70 316.79 152.45
cxlvii
HT-2b
Commercial 962.09
410.53 445.45 551.56 516.64 192.42
HT-2 (C)(i) 735.84 410.53 445.45 325.31 290.40 147.17
HT-2 (C)(ii) 819.70 410.53 445.45 409.17 374.25 163.94
HT3 (a)(i)
Lift Irrigation 225.48
410.53 445.45 -185.05 -219.97 45.10
HT3 (a)(ii)
Lift Irrigation 318.06
410.53 445.45 -92.47 -127.38 63.61
HT3 (a)(iii)
Lift Irrigation 262.67
410.53 445.45 -147.86 -182.77 52.53
HT3 (b)
Irrigation &
Agricultural
Farms
426.55
410.53 445.45
16.02 -18.90 85.31
HT-4
Residential
Apartments
662.71
410.53 445.45 252.18 217.27 132.54
HT5
Temporary 1642.58
410.53 445.45 1232.05 1197.14 328.52
*Includes weighted average power purchase costs of 347.33Ps/unit, transmission charges of
51.09/unit and transmission losses of 3.37%.
** Includes weighted average power purchase costs of 347.33Ps/unit, transmission charges of
51.09Ps/unit and transmission losses of 3.37%, HT distribution network / wheeling charges of
20.81Ps/unit and HT distribution losses of 3.77%.
Note: The carrying cost of regulatory asset for the current year is zero.
As per the Tariff Policy 2016, while limiting the CSS so as not to exceed
20% of the tariff applicable to relevant category, the CSS (after rounding
off to nearest paise) is determined as under:
Cross Subsidy Surcharge for FY18
Paise/unit
Particulars
66 kV
&
above
HT level-11
kV/33kV
HT-1 Water Supply 107 91
HT-2a Industries 152 152
HT-2b Commercial 192 192
HT-2 (C)(i) 147 147
HT-2 (C)(ii) 164 164
HT3 (a)(i) Lift Irrigation 0 0
HT3 (a)(ii) Lift Irrigation 0 0
HT3 (a)(iii) Lift Irrigation 0 0
HT3 (b) Irrigation &
Agricultural Farms 16
0
HT-4 Residential Apartments 133 133
HT5 Temporary 329 329 Note: wherever CSS is negative, it is made zero
The cross subsidy surcharge determined in this order shall be applicable
to all open access/wheeling transactions in the area coming under
CESC. However, the above CSS shall not be applicable to captive
generating plant for carrying electricity to the destination of its own use
cxlviii
and for those renewable energy generators who have been exempted
from CSS by the specific Orders of the Commission.
The Commission directs the Licensees to account the transactions under
open access separately.
6.8 Other Issues:
6.8.1 Tariff for Green Power:
In order to encourage generation and use of green power in the State,
the Commission decides to continue the existing Green Tariff of 50 paise
per unit as the additional tariff over and above the normal tariff to be
paid by HT-consumers, who opt for supply of green power from out of
the renewable energy procured by distribution utilities over and above
their Renewable Purchase Obligation (RPO).
6.9 Other tariff related issues:
i) Rebate for use of Solar Water Heater:
While some of the ESCOMs have requested to discontinue the Solar
rebate to consumers, the consumers have requested to increase the
Solar Rebate. Since the use of Solar Water Heaters is advantageous
to both the ESCOMs and the consumers, the Commission has
decided to retain the existing rebate of 50 paise per unit subject to a
maximum of Rs.50 per installation per month for use of solar water
heaters.
ii) Prompt payment incentive:
The Commission had approved a prompt payment incentive at the
rate of 0.25% of the bills amount (i) in all cases of payment through
ECS; and (ii) in the case of monthly bill exceeding Rs.1,00,000/- (Rs.one
lakh), where payment is made 10 days in advance of due date and
(iii) advance payment of exceeding Rs.1000 made by the consumers
towards monthly bills. The Commission decides to continue the same.
cxlix
iii) Relief to Sick Industries:
The Government of Karnataka has extended certain reliefs for
revival/rehabilitation of sick industries under the New Industrial Policy
2001-06 vide G.O. No. CI 167 SPI 2001, dated 30.06.2001. Further, the
Government of Karnataka has issued G.O No.CI2 BIF 2010, dated
21.10.2010. The Commission, in its Tariff Order 2002, had accorded
approval for implementation of reliefs to the sick industries as per the
Government policy and the same was continued in the subsequent
Tariff Orders. However, in view of issue of the G.O No.CI2 BIF 2010,
dated 21.10.2010, the Commission has accorded approval to the
ESCOMs for implementation of the reliefs extended to sick industrial
units for their revival / rehabilitation on the basis of the orders issued
by the Commissioner for Industrial Development and Director of
Industries & Commerce, Government of Karnataka.
iv) Power Factor:
The Commission in its previous order had retained the PF threshold
limit and surcharge, both for LT and HT installations at the levels
existing as in the Tariff Order 2005. The Commission has decided to
continue the same in the present order as indicated below:
LT Category (covered under LT-3, LT-4, LT-5 & LT-6 where motive
power is involved): 0.85
HT Category: 0.90
v) Rounding off of KW / HP:
In its Tariff Order 2005, the Commission had approved rounding off of
fractions of KW / HP to the nearest quarter KW / HP for the purpose of
billing and the minimum billing being for 1 KW / 1HP in respect of all
the categories of LT installations including IP sets. This shall continue to
be followed. In the case of street light installations, fractions of KW
shall be rounded off to the nearest quarter KW for the purpose of
billing and the minimum billing shall be for a quarter KW.
cl
vi) Interest on delayed payment of bills by consumers:
The Commission, in its previous Order had approved interest on
delayed payment of bills at 12% per annum. The Commission
decides to continue the same in this Order also.
vii) Security Deposit (3 MMD/ 2 MMD):
The Commission had issued the K.E.R.C. (Security Deposit)
Regulations, 2007 on 01.10.2007and the same has been notified in
the Official Gazette on 11.10.2007. The payment of security deposit
shall be regulated accordingly, pending orders of the Hon’ble High
Court in WP No.18215/2007.
viii) Mode of Payment by consumers:
The Commission, in its previous Order had approved revenue
payment in cash/cheque/DD of amounts up to and inclusive of
Rs.10,000/- and payment of amounts above Rs.10,000 to be made
only through cheque. The consumers can also make payment of
power bills through Electronic Clearing System(ECS)/ Credit card/
online E-payment up to the limit prescribed by the RBI, RTGS/NEFT/on
line E-Payment / Digital mode of payments as per the guidelines
issued by the RBI wherever such facility is provided by the Licensee in
respect of bill payments, up to the limit prescribed by the RBI.
Some of the ESCOMs in their applications had proposed to consider the
collection of power supply bills above One lakh rupees, through
RTGS/NEFT. The Commission has examined the request of ESCOMs, and
decides to approve the payment of power supply bills above One lakh
rupees, through RTGS/NEFT, at the option of the consumer.
6.10 Cross Subsidy Levels for FY18:
The Hon’ble Appellate Tribunal for Electricity (ATE), in its order dated 8th
October, 2014, in Appeal No.42 of 2014, has directed the Commission to
clearly indicate the variation of anticipated category-wise average
revenue realization with respect to overall average cost of supply in
cli
order to implement the requirement of the Tariff Policy that tariffs are
within ±20% of the average cost of supply, in the tariff orders being
passed in the future. It has further directed the Commission to also
indicate category-wise cross subsidy with reference to voltage-wise cost
of supply so as to show the cross subsidies transparently.
In the light of the above directions, the variations of the anticipated
category-wise average realization with respect to the overall average
cost of supply and also with respect to the voltage-wise cost of supply of
CESC and the cross subsidy thereon, is Indicated in ANNEXURE- III of this
Order. It is the Commission’s endeavour to reduce the cross subsidies
gradually as per the Tariff policy.
6.11 Effect of Revised Tariff:
As per the KERC (Tariff) Regulations 2000, read with the MYT Regulations
2006, the ESCOMs have to file their applications for ERC/Tariff before 120
days of the close of each financial year in the control period. The
Commission observes that the ESCOMs have filed their applications for
revision of tariff on 30th November, 2016. As the tariff revision is effective
from 1st April, 2017 onwards, the ESCOMs would be recovering revenue
as per the revised tariff for eleven months of the Financial Year (except
in case where the billing cycle is lesser than a month).
A statement indicating the proposed revenue and approved revenue is
enclosed vide Annexure-III and detailed tariff schedule is enclosed vide
Annexure IV.
6.12 Summary of the Tariff Order:
The Commission has approved an ARR of Rs.3621.58 Crores for FY18,
which includes the deficit for FY16 of Rs.492.73 Crores with a net gap in
revenue of Rs.281.54 Crores as against CESC’s proposed ARR of
Rs.4648.42 Crores.
clii
The Commission has allowed recovery of entire gap in revenue with
additional revenue of Rs.281.54 Crores on Tariff Revision as against the
additional revenue of Rs.962.92 Crores proposed by CESC for FY18.
CESC in its filing dated 30.11.2016 had proposed an increase of 148
paise per unit for all categories of consumers resulting in average
increase in retail supply tariff by 26.13%. The Commission has
approved an average increase of 48 paise per unit. The average
increase in retail supply tariff of all the consumers for FY18 is 8%.
The Commission has allowed for recovery of additional revenue
partly by increase in fixed charges ranging from Rs.5 per
KW/HP/KVA to Rs.20 per KW/HP/KVA.
The Commission has allowed for recovery of additional revenue
partly by increase in the energy charges in the range of 15
paise per unit to 50 paise per unit.
The increase in the energy charges for domestic category upto
30 and from 30 to 100 units is 25/30 paise per unit.
The increase in the LT industries category is in the range of 15
paise per unit to 20 paise per unit and for other categories, the
increase is in the range of 20 paise per unit to 50 paise per unit.
In order to increase sales under HT industry and HT commercial
category, the increase made in energy charges in 2nd slab is 20
paise per unit as against 40 paise per unit increase in 1st slab for
consumption upto 1 lakh / 2 lakh units per month.
Time of the day tariff which was made mandatory in the previous Tariff
Orders for installations under HT2 (a),HT2 (b) and HT2(c) with contract
demand of 500KVA and above is continued in this Order.
cliii
The Commission has introduced Time of Day billing for morning
peak period from 06.00 hours to 10.00 hours in respect of LT/ HT
consumers in addition to the prevailing ToD billing.
A rebate of 50 paise per unit is allowed for effluent treatment
plant installed within the industrial premises under HT-2(a) tariff
schedule.
Green tariff of additional 50 paise per unit over and above the
normal tariff which was introduced a few years ago for HT
industries and HT commercial consumers at their option, to
promote purchase of renewable energy from ESCOMs, is
continued in this Order.
As in the previous Orders, the Commission has continued to
provide a separate fund for facilitating better Consumer
Relations /Consumer Education Programmes.
The Commission has decided to impose penalty upto Rs.one
lakh per sub division of CESC who fail to conduct Consumer
Interaction Meetings at least once in three months and such
penalty would be payable by the concerned officers of the
CESC.
6.13 Commission’s Order
1. In exercise of the powers conferred on the Commission under
Sections 62, 64 and other provisions of the Electricity Act, 2003, the
Commission hereby determines and notifies the retail supply tariff of
CESC for FY18 as stated in Chapter-6 of this Order.
2. The tariff determined in this order shall be applicable to the
electricity consumed from the first meter reading date falling on or
after 1st April, 2017.
cliv
3. Consequent to issue of this Tariff Order, the petition filed by CESC vide
OP.No.90 of 2016 stands disposed of.
4. This Order is signed dated and issued by the Karnataka Electricity
Regulatory Commission at Bengaluru this day, the 11th April, 2017.
Sd/- Sd/- Sd/-
(M.K.Shankaralinge Gowda) (H.D. Arun Kumar) (D.B. Manival Raju)
Chairman Member Member
clv
APPENDIX
NEW DIRECTIVES
AND
REVIEW OF COMPLIANCE OF PREVIOUS DIRECTIVES ISSUED BY THE
COMMISSION
1. The following new directives are issued by the Commission:
i. Directive on conducting Consumers’ Interaction Meetings in the O &
M sub-divisions for redressal of consumer complaints:
During the Public Hearings held by the Commission to hear the
views, comments & suggestions of the consumers and other
stakeholders on the ESCOMs’ Tariff applications, it was brought to
the notice of the Commission by the consumers that the Consumer
Interaction Meetings chaired by the Superintending Engineers, in the
O&M sub-divisions of ESCOMs are not being conducted regularly,
thus denying them of the opportunity to attend such meetings to air
their complaints/ grievances pertaining to supply of electricity and
any others issues. The consumers have urged the Commission to
ensure that ECOMS take necessary action to make the sub-divisions
conduct Consumer Interaction meetings regularly to hear and
address the consumer grievances.
The Commission strongly opines that if the ESCOMs conduct
consumer interaction meetings regularly, not only most of the
grievances of the consumers could be redressed in such meetings,
the ESCOMS could also redesign/realign their operations and
investments on capital and other works to optimally deliver better
and satisfactory service to the consumers. Such development could
also increase the efficiency and revenues of the ESCOMs.
Hence, the Commission hereby directs the CESC to ensure that
Consumer Interaction Meetings chaired by the Superintending
clvi
Engineers, are conducted in each O&M sub-division according to a
pre-published schedule, at least once in every three months. Further,
the consumers shall be invited to such meetings in advance through
emails, letters, notices on CESC’s website, local newspapers etc., to
facilitate participation of maximum number of consumers in such
meetings. The CESC should ensure that the proceedings of such
meetings are recorded and uploaded on its website, for the
information of consumers. Compliance in this regard shall be
reported once in three months to the Commission, indicating the
date, the number of consumers attending such meetings and the
status of redressal of their complaints.
If the CESC fails to ensure conduct of the Consumer Interaction
Meetings as directed, the Commission would consider imposing a
penalty of upto Rs one lakh per O&M sub-division per quarter for
each instance of non-compliance, and also direct that such penalty
shall be recovered from the concerned Superintending Engineer
who fails to conduct such meetings.
ii. Directive on preparation of energy bills on monthly basis by
considering 15 minute’s time block period in respect of EHT/HT
consumers importing power through power exchange under Open
Access
The Commission has noticed that, year on year, there has been a
substantial increase in the number of EHT and HT consumers of the
distribution licensees opting for open access resulting in substantial
volume of energy being procured through Power Exchanges, which
imposes a burden on the SLDC, in grid management.
Further, in accordance with the stipulations in Clause 6.3 (f) of the
Karnataka Electricity Grid Code (KEGC),2015, under the chapter on
Operation Planning, in order to facilitate demand estimation for
operational purpose, the distribution licensee (ESCOM) is required to
clvii
provide to the SLDC, on a day ahead basis, at 09.00 hours each day,
its estimated demand for each 15-minute block, for the ensuing day.
The distribution licensee is also, required to provide to the SLDC, the
estimates of loads that may be shed, when required, in discrete
blocks, with the details of arrangements of such load shedding.
Consequent to such stipulation the ESCOMs are required to prepare
monthly energy bills in respect of EHT/HT consumers importing power
through power exchange under Open Access, by considering 15
minute’s time block. However, it is observed that in rare cases,
except this billing requirement is not being complied with the
ESCOMs.
In view of this, the Commission directs the CESC to ensure
preparation of energy bills on monthly basis by considering the 15
minute’s time block period in respect of EHT/HT consumers importing
power through power exchange under Open Access. The CESC shall
implement the directive forthwith and the compliance regarding the
same shall be submitted monthly from May, 2017 onwards, to the
Commission, regularly.
2. Review of Compliance of Existing Directives:
The Commission, in its earlier Tariff Orders and other communications,
has issued several directives for compliance by the CESC. While
reproducing those directives, the compliance of the directives as
reported by the CESC is analyzed in this Section.
i. Directive on Energy Conservation:
The Commission had directed the ESCOMs to service all the new
installations only after ensuring that the BEE ***** (Bureau of Energy
Efficiency five-star rating) rated Air Conditioners, Fans, Refrigerators,
etc., are being installed in the applicant consumers’ premises.
Similarly, ESCOMS were directed to ensure that all new
streetlight/high mast installations including extensions made to the
clviii
existing streetlight circuits shall be serviced only with LED
lamps/energy efficient lamps like induction lamps.
Further, the Commission had directed the ESCOMs to take up
programmes to educate all the existing domestic, commercial and
industrial consumers, through media and distribution of pamphlets
along with monthly bills, regarding the benefits of using five-star
rated equipment certified by the Bureau of Energy Efficiency in
reduction of their monthly electricity bills and conservation of
precious energy.
Compliance by the CESC:
The following energy conservation measures have been taken:
Unnat Jyothi by Affordable LEDs for All (UJALA) (DELP):
The CESC has implemented “Unnat Jyothi by Affordable LEDs for All”
(UJALA) popularly known as ‘‘Hosa Belaku’’ to provide high quality
9W LED bulbs at an affordable rate to consumers. The Energy
Department, Government of Karnataka has designated Energy
Efficiency Services Limited (EESL), a public sector entity under the
administrative control of Ministry of Power as implementing agency
for UJALA in the State. The programme was launched on 11.12.2015,
in Mysuru by the Hon’ble Chief Minister of Karnataka. As on October
2016, 25,90,536 LED bulbs have been sold.
DEEP Project
The detailed project report for the proposed DEEP pilot project on the
following two feeders has been submitted for approval of the
Commission.
Servicing of new installations after ensuring BEE***** (5-star rating)
appliances
SI.
N0.
FEEDER NAME DIVISION DPR
COST RS.
CRORES
1 Heggadahalli Nanjangudu 7.42
2 Chowdikatte Hunsur
clix
The CESC has issued a circular No.
CESC/GMT/EEE(DSM)/AEE(DSM)/2016-17/cys-65 dated 20.04.2016,
in line with the KERC directives, to service new installations only after
ensuring that the BEE 5-star rating household electrical appliances
are being installed in the applicant consumers’ premises and to
service all new streetlight / High mast installations including
extensions made to the existing streetlight circuits only with LED
lamps/energy efficient lamps like induction lamps. Further, the GoK
vide its circular EN 1 VSC2016, dated 14.07.2016, has also
mandated that all Government Departments and Public Sector
Undertakings shall procure and use only BEE 5 star rated electrical
equipment.
Further, to create awareness among the consumers, the CESC has
created a link in the official website regarding energy saving tips and
to use BEE 5 star rated electrical appliances for reduction of their
monthly electricity bills. Also, notifications are being issued to
educate all the existing domestic, commercial and industrial
consumers, through media and distribution of pamphlets along with
monthly bills, regarding the benefits of using five star rated
equipment certified by the Bureau of Energy Efficiency which would
result in reducing their monthly electricity bills and also conserving
precious energy.
Commission’s Views:
The Commission observes that the CESC has not submitted the
compliance of the directive regularly. It is also observed from the
CESC’s compliance that, it has merely issued a circular to all its
officers directing them to ensure that BEE five-star rated energy
efficient appliances while servicing the installations, and has not
taken any further effective steps in the field to ensure service to all
new installations only with the BEE five-star rated Air Conditioners,
Fans, Refrigerators, etc., in the applicant consumers’ premises. The
clx
CESC is directed to focus on effective implementation of this
directive by reviewing periodically the progress/status of
implementation of its circular instructions by its field officers and take
corrective action wherever necessary.
Further, it is also important that the CESC draws up a continuous
awareness programme to educate the consumers about the benefit
of using the energy efficient appliances in their premises and ensure
increase in use of energy efficient appliances.
The Commission reiterates that the CESC shall service all the new
installations are serviced only after ensuring that the BEE ***** (Bureau
of Energy Efficiency five-star rating) rated Air Conditioners, Fans,
Refrigerators, etc., are being installed in the applicant’s /consumers’
premises and the compliance thereon shall be reported to the
Commission once in a quarter regularly.
ii. Directive on implementation of Standards of Performance (SoP):
The Directive issued was as follows:
“The CESC is directed to strictly implement the specified Standards of
Performance while rendering services related to supply of power as
per the KERC (Licensee’s Standards of Performance) Regulations,
2004. Further, the CESC is directed to display prominently in Kannada
the details of various critical services such as replacing the failed
transformers, attending to fuse off call / line breakdown complaints,
arranging new services, change of faulty energy meters,
reconnection of power supply, etc., rendered by it as per Schedule-1
of the KERC (Licensee’s Standards of Performance) Regulations, 2004
and Annexure-1 of the KERC (Consumer Complaints Handling
Procedure) Regulations, 2004, on the notice boards in all the O & M
sections and O & M sub-divisions in its jurisdiction for the information
of consumers as per the following format.
clxi
Nature of
Service
Standards of
performance
(indicative minimum
time limit for
rendering services)
Primary
responsibility
centres where
to lodge
complaint
Next higher
Authority
Amount
payable to
affected
consumer
The CESC shall implement the above directive within one month from
the date of the order and report compliance to the Commission
regarding the implementation of the directives.”
Compliance by the CESC:
The CESC has implemented the specified Standards of Performance
while rendering services related to supply of power as per the KERC
(Licensee’s Standards of Performance) Regulations, 2004. The CESC
has prominently displayed in Kannada the details of various services
such as replacing of the failed transformers, attending to fuse off call /
line breakdown complaints, arranging new services, change of faulty
energy meters, reconnection of power supply, etc., rendered as per
Schedule-1 of the KERC (Licensee’s Standards of Performance)
Regulations, 2004 and Annexure-1 of the KERC (Consumer Complaints
Handling Procedure) Regulations, 2004, on the notice boards in all the
O & M sections and O & M sub-divisions for the information of
consumers. The details have already been furnished to the
Commission vide letter No. CESC/SEE (Coml.)/EE (Com)/2015-
16/12661-66, dated 07.11.2015.
Implementation of KERC Directive on Standard of Performance (SOP)
as on October 2016
SL.
NO
.
CIR
CLE
NO
OF
O&
M SU
B-
DIV
ISIO
NS
EX
ISTI
NG
NO
OF
O&
M
SEC
TIO
NS
EX
ISTI
NG
N
O O
F
O&
M S
UB
-
DIV
ISIO
NS
WH
ER
E T
HE
DETA
ILS
DIS
PLA
YED
N
O O
F
O&
M
SEC
TIO
NS
WH
ER
E T
HE
DETA
ILS
DIS
PLA
YED
NO
OF
CO
MP
LAIN
TS
REC
EIV
ED
FO
R T
HE
DELA
Y IN
REN
DER
ING
THE
SER
VIC
E
AM
OU
NT
PA
ID T
O
THE
CO
NSU
MER
IN R
S.
CU
MU
LATI
V
E N
O O
F
HR
S
DELA
Y
IN
REN
DER
ING
SER
VIC
ES
CU
MU
LATI
V
E A
MO
UN
T
PA
ID T
O
THE
CO
NSU
MER
IN R
S.
Nos. Nos. Nos. Nos. Nos. Nos. Nos. Nos.
1 Works
circle 19 77 19 77
0 0 0 0
2 O&M
Circle 13 55 13 55
0 0 0 0
3 Mandya
Circle 13 54 13 54
0 0 0 0
clxii
4 Hassan
Circle 16 65 16 65
0 0 0 0
CESC Total 61 251 61 251 0 0 0 0
Commission’s Views:
The Commission while noting the compliance furnished, reiterates
that CESC shall continue to comply by displaying the details of SoP
in all its O&M section and sub-division offices for the information of
the consumers, and also to adhere to the specified standards of
performance in rendering various services to consumers in a time
bound manner.
The Commission notes that consumers participating in the Public
Hearings held on the ESCOMs’ Tariff revision proposals have stated
that the ESCOMs, contrary to their submission before the
Commission, on compliance of the directive issued by the
Commission, have not displayed the details of SoP on the notice
boards in O&M offices and also not adhered to the time lines
stipulated in the SoP. They have sought the intervention of the
Commission to ensure that the ESCOMs comply with the directive on
the SoP.
The Commission notes that the situation indicates that there is lack of
effective supervision over the functioning of field officers by the
ESCOMs especially in rendering services relating to supply of power
to the consumers.
The Commission reiterates its directive to the CESC to continue to
strictly implement the specified SoP while rendering services related
to supply of power as per the KERC (Licensee’s Standards of
Performance) Regulations, 2004. The compliance regarding the
same shall be submitted to the Commission, regularly.
clxiii
iii. Directive on use of safety gear by linemen:
The directive issued was as follows:
“The Commission directs the CESC to ensure that all the linemen in its
jurisdiction are provided with proper and adequate safety gear and
also ensure that the linemen use such safety gear provided while
working on the network. The CESC should sensitise the linemen about
the need for adoption of safety aspects in their work through suitably
designed training and awareness programmes. The CESC is also
directed to device suitable reporting system on the use of safety gear
and mandate supervisory/higher officers to regularly cross check the
compliance by the linemen and take disciplinary action on the
concerned if violations are noticed. The CESC shall implement this
directive within one month from the date of this order and submit
compliance report to the Commission.”
Compliance by the CESC:
The CESC has provided proper and adequate safety gear to all the
linemen in its jurisdiction and is also ensuring that the linemen use
such safety gear provided while working on the distribution system.
Further, CESC is conducting training programmes for the linemen
wherein the absolute necessity of adoption of safety aspects in their
work is constantly highlighted. Training on safety aspects has been
imparted to 625 linemen during FY 6.
The CESC has also directed the field officers to monitor the proper up
keep of the safety gear provided and keep in stock reasonable
spare sets of safety gear and also monitor the use of the same by
linemen and take disciplinary action on the concerned if violations
are noticed. The details are furnished below:
clxiv
Implementation of KERC Directive on use of safety gear by linemen
as on the month of October 2016
SL
NO CIRCLE
NO OF
LINEME
N /ASST.
LINEME
N
EXISTIN
G
NO OF
LINEME
N/ASST.
LINEME
N
PROVID
ED WITH
SAFETY
GEAR
NO
OF
TRAI
NING
AND
AWA
RENE
SS
PRO
GRA
MME
CON
DUCT
ED
NO OF
SURPRI
SE
INSPEC
TIONS
COND
UCTED
REGAR
DING
USE OF
SAFETY
GEAR
/UNIFO
RM BY
LINEME
N
NO OF
NOTIC
ES
GIVEN
TO THE
LINEME
N FOR
NOT
USING
SAFETY
GEAR
NO OF
DISCIP
LINARY
ACTIO
NS
TAKEN
AGAIN
ST
LINEME
N
CUMUL
ATIVE
NO OF
TRAINI
NG
AND
AWAR
ENESS
PROG
RAMM
E
COND
UCTED
CUMULATI
VE NO OF
SURPRISE
INSPECTIO
NS
CONDUC
TED
REGARDI
NG USE
OF SAFETY
GEAR
/UNIFOR
M BY
LINEMEN
CUMU
LATIVE
NO OF
NOTIC
ES
GIVEN
TO THE
LINEM
EN
FOR
NOT
USING
SAFETY
GEAR
YEAR
CUMULATI
VE NO OF
DISCIPLIN
ARY
ACTIONS
TAKEN
AGAINST
LINEMEN
Nos. Nos. Nos. Nos. Nos. Nos. Nos. Nos. Nos. Nos.
1 2 3 4 5 6 7 8 9 10 11 12
1 Works
circle 702 702 11 113 0 0 117 523 0 0
2 O&M
Circle 723 407 1 6 0 0 24 162 0 0
3 Mandy
a 609 465 2 12 0 0 8 49 0 0
4 Hassan 716 716 0 0 0 0 91 146 4 0
CESC Total 2750 2290 14 131 0 0 240 880 4 0
Further, it is submitted that the remaining linemen will be provided
with safety gear by March 2017.
Commission’s Views:
It is important that the CESC should continue to focus on safety
aspects to reduce the electrical accidents occurring due to
negligence and non-adherence of safety procedures by the field
staff while working on the distribution network. Further, the linemen
should be given training periodically on adherence to safety
aspects so that it becomes part of their routine.
The Commission reiterates its directive that the CESC shall ensure
that, all the linemen in its jurisdiction are provided with proper and
adequate safety gear and that they use such safety gear
provided to them while working on the network. The compliance
in this regard shall be submitted once in a quarter to the
Commission regularly.
iv. Directive on providing Timer Switches to Street lights by the
ESCOMs
The directive issued was as follows:
clxv
“The Commission directs the CESC to install timer switches using
own funds to all the street light installations in its jurisdiction
wherever the local bodies have not provided the same and later
recover the cost from them. The CESC shall also take up
periodical inspection of timer switches installed and ensure that
they are in working conditions. They shall undertake necessary
repairs / replacement work, if required and later recover the cost
from local bodies. The compliance regarding the progress of
installation of timer switches to street light installations shall be
reported to the Commission within three months of the issue of the
order.”
Compliance by the CESC;
TOTAL NO. OF
STREETLIGHT
INSTALLATIONS
NO. OF
INSTALLATIONS
PROVIDED
WITH TIMER
SWITCHES
BALANCE NO.
OF
INSTALLATIONS
TO BE
PROVIDED WITH
TIMER SWITCHES
LIKELY DATE
OF
COMPLETIO
N OF ALL
INSTALLATI
ON
REMARKS
/ISSUES
20,330 50 20,280 -
The work of providing timer switches to streetlight installations
will be taken up by the CESC under E&I works during 2016-17,
covering Mysuru city and other district & taluk Headquarters
initially and later village Panchayats.
The CESC will also ensure that henceforth, the new streetlight
installations and any extensions/modifications to be carried
out to the existing streetlight installations shall be serviced
only with timer switches.
The cost of a timer switch is around Rs. 55,000/-. As the
expenditure involved is huge, the CESC is also examining the
possibility of providing load monitoring units which also have
the time limiting capability to streetlight installations. The cost
per unit is around 12,000/-.
clxvi
Further, regarding the installation of timer switches to the
streetlight installations, the CESC has addressed letters to MCC
Mysuru, but no action has been taken by them.
Further, the CESC on its own, has not taken up this case because
of huge capex requirement. In the meanwhile, on request by the
Urban Development Department, Bengaluru, the CESC has
submitted a proposal under “AMRUT” scheme in which the main
objective is to optimize energy consumption in streetlights
including replacement of energy inefficient bulbs by suitable
efficient LED bulbs and also fixing timer switches to all streetlight
installations in AMRUT cities i.e., Mysuru, Mandya and Hassan. The
proposal consists of replacement of 77,446 streetlight fittings and
fixing of 4,754 timer switches in AMRUT cities vide letter No.
CESC/GM(T)/DGM(DSM)/AGM (DSM)/2016-17/16885 dated
21.12.2016 and approval from the Urban Development
Department, GoK is awaited.
Commission’s Views:
The Commission observes that so far the CESC has not taken any
concrete steps to provide timer switches to the streetlight
installations in its jurisdiction. The CESC has also not initiated any
action to coordinate with the concerned local authorities for
installation of timer switches by them. The inaction by the CESC
has resulted in wastage of electricity by indiscriminate use of
streetlights during day time in its jurisdiction.
It is also noted that providing timer switches to streetlight
installations under AMRUTH scheme covering 4,754 streetlight
installations has not yet taken off. The same should be pursued
with utmost seriousness this matter deserves, with the concerned
authorities so as to take the matter forward. The progress /status in
this regard shall be reported to the Commission on a quarterly
basis, regularly.
clxvii
Further, wherever feasible, the CESC should install the timer
switches at its cost and later recover the cost from the concerned
local bodies. The CESC is also directed to persuade the local
bodies to install timer switches at their cost availing funds / grants
received from Government and other agencies for such
programmes.
The Commission reiterates its directive that the CESC shall ensure
that, the new streetlight installations and any
extension/modification to be carried out to the existing streetlight
installations shall be serviced only with timer switches.
v. Directive on Load shedding:
The Commission had directed that:
(1) Load shedding required for planned maintenance of
transmission/ distribution networks should be notified in daily
newspapers at least 24 hours in advance for the information
of consumers.
(2) The ESCOMs shall on a daily basis estimate the hourly
requirement of power for each sub-station in their jurisdiction
based on the seasonal conditions and other factors affecting
demand.
(3) Any likelihood of shortfall in the availability during the course
of the day should be anticipated and the quantum of load
shedding should be estimated in advance. Specific sub-
stations and feeders should be identified for load shedding for
the minimum required period with due intimation to the
concerned sub-divisions and sub-stations.
(4) The likelihood of interruption in power supply with time and
duration of such interruption may be intimated to consumers
through SMS and other means.
clxviii
(5) Where load shedding has to be resorted to due to unforeseen
reduction in the availability of power, or for other reasons,
consumers may be informed of the likely time of restoration of
supply through SMS and other means.
(6) Load shedding should be carried out in different sub-stations /
feeders to avoid frequent load shedding affecting the same
sub-stations / feeders.
(7) The ESCOMs should review the availability of power with
respect to the projected demand for every month in the last
week of the previous month and forecast any unavoidable
load shedding after consulting other ESCOMs in the State
about the possibility of inter-ESCOM load adjustment during
the month.
(8) The ESCOMs shall submit to KERC their projections of
availability and demand for power and any unavoidable
load shedding for every succeeding month in the last week of
the preceding month for approval.
(9) The ESCOMs shall also propose specific measures for
minimizing load shedding by spot purchase of power in the
power exchanges or bridging the gap by other means.
(10) The ESCOMs shall submit to the Commission sub-station wise
and feeder-wise data on interruptions in power supply every
month before the 5th of succeeding month.
The Commission had directed that the ESCOMs shall make every
effort to minimize inconvenience to consumers strictly complying
with the above directions. The Commission had indicated to review
the compliance of directions on a monthly basis for appropriate
orders.
clxix
Compliance by the CESC:
Load shedding required for planned maintenance of distribution
networks are being notified in daily newspapers in advance by
the concerned O&M officials.
At present the “SLDC” is instructing the CESC regarding shortfall
in power and based on real time allocation of power due to
shortfall, CESC is taking action to effect unscheduled load
shedding on the identified specific sub-stations and feeders on
rotation basis.
Unscheduled load shedding is being informed to all
Superintending Engineers O&M circle, Executive Engineers O&M
divisions through SMS for intimating to consumers. The CESC is
informing all 220kV stations to effect load shedding through
“DCC” established at Mysuru. Also, the CESC is taking action to
intimate the unscheduled load shedding to the public through
newspapers and FM radio channel during shortfall in generation.
CESC is implementing uniform load shedding in all the 5 districts.
At present, SLDC is monitoring inter-ESCOM availability and
allocation of power.
The details of sub-station feeder-wise interruption data (both
number and duration of interruptions) are being submitted to
the Commission every month in the form of PQM statements.
The CESC is submitting the projection of availability and
demand for power and any unavoidable load shedding for
every succeeding month in the last week of the preceding
month to the Commission. Projection of availability and demand
for power and any unavoidable load shedding details for the
month of September and October 16 are herewith enclosed as
Annexure-1.
“Development & deployment of web based Feeder-wise Data
Analysis and Outage Management (FDA&OM) along with support
and maintenance for a period of one year in CESC”.
clxx
The CESC has taken action towards implementation of an
“Application Software namely “Feeder-wise Data Analysis and
Outage Management” for providing information on time and
duration of unscheduled interruptions to the consumers through SMS.
This application also helps avoiding of load shedding of the same
sub-stations/feeders considered for load shedding by rostering based
on feeder priority.
The Work has been awarded to M/s Idea Infinity IT solutions
Pvt. Ltd, Bengaluru, on 7-1-2016.
The implementation of application is in progress.
The sample data has been shared to M/s Infinity IT solutions
Pvt. Ltd, Bengaluru by SLDC on 9-3-2016.
The test file from MCC was pushed to FDAOM application
server on 22.04.2016 and sample reports were generated and
accepted.
From May, 2016, the data is pushed to FDAOM application
server on real time basis.
Daily reports and monthly reports are generated and also the
same application is used for generation of JSON files of reports
required by the Nation Power Portal (NPP) web portal where in
REC (Rural Electrification Corporation) will be pushing the SMS
to the consumers at its own cost for one year and this is in
progress.
The application is likely to ‘go live’ from 1.05.2016 and User
Acceptance Test is completed on 08.08.2016
The outage management module still needs improvement
and specifications w.r.t SMS gateway to integrate to field
officers of the CESC and station mobile numbers that are in
CUG are still under development.
At present through this application only the scheduled outage
is being intimated to CESC officials and elected
representatives through SMS as the input to this application is
SCADA data where in the bifurcation between scheduled and
un-schedule interruption cannot be made.
clxxi
The outage Management module developed is now taken up
for improvement to send SMS to MPs, MLAs, VIPs, HT and EHT
consumers at the first instance. Mobile telephone numbers of all
the consumers are being collected and sending SMS to all
consumers will be taken up in phased manner.
Also, the 11kV feeder consumer mapping is not completed
and data collection is in progress. After completion of this, the
consumers can be intimated through SMS.
Commission’s views:
The Commission notes that the CESC has not expedited the
‘application software’ which it has been developing for integration
with the SCADA data to enable providing information to the
consumers through SMS in advance regarding the time and duration
of probable interruptions. There is no progress in this regard as there is
no change in the status as compared to the status of the last year.
The Commission notes that the CESC has not effectively and
satisfactorily complied with the directive on load shedding. The
CESC shall expedite development of necessary software and other
process required to inform consumers through SMS regarding both
scheduled and un-scheduled load shedding due to reasons such as
system constraints, breakdowns of lines/equipment, maintenance
etc. This would certainly address significantly the consumers’
dissatisfaction on this issue and prevent inconvenience/disruption
caused to industrial consumers.
Further, the Commission observes that the CESC is not submitting its
projections of availability and demand for power and any
unavoidable load shedding for every succeeding month in the last
week of the preceding month to the Commission, regularly. The
CESC shall henceforth, submit the same regularly to the Commission
without fail.
clxxii
The Commission reiterates that, the CESC shall comply with the
directive on load shedding and submit monthly compliance reports
thereon to the Commission regularly.
vi. Directive on Establishing a 24x7 Fully Equipped Centralized
Consumer Service Center for Redressal of Consumer
Complaints:
The directive was as follows:
“The CESC is directed to put in place a 24x7 fully equipped
Centralized Consumer Service Center at its Headquarters with
state of the art facility/system for receiving consumer complaints
and monitoring their redressal so that electricity consumers in its area
of supply are able to seek and obtain timely and efficient services /
redressal in the matter of their grievances. Such a Service Center
shall have adequate number of desk operators in each shift so that
consumers across the jurisdiction of the CESC are able to lodge their
complaints directly with this Centre.
Every complaint shall be received on a helpline telephone number
by the
desk operator and registered with a docket number which shall be
intimated to the consumer. Thereafter, the complaints shall be
transferred
online / communicated to the concerned field staff for resolving the
same. The concerned O&M / local service station staff shall visit the
complainant’s premises / fault location at the earliest to attend to
the complaints and then inform the Centralized Service Centre that
the
complaint is attended. In turn, the call Centre shall call the
complainant
and confirm with him whether the complaint has been attended to.
The
complaints shall be closed only after receiving consumer’s /
complainant’s confirmation. Such a system should also generate
clxxiii
daily
reports indicating the number / nature of complaints received,
complaints attended, complaints pending and reasons for not
attending to the complaints.
The CESC shall publish the details of the complaint handling
procedure /
Mechanism with contact numbers in the local media periodically for
the
information of the consumers. The compliance of the action taken in
the matter shall be submitted to the Commission within two months
from the date of this Order.
Further, the Commission directs the CESC to establish/strengthen
24x7 service stations, equipping them with separate vehicles and
adequate line crew, safety kits and maintenance materials at all its
sub-divisions including rural areas for effective redressal of consumer
complaints”.
Compliance by the CESC:
The CESC has already put in place during December, 2011, a
24x7 fully equipped centralized Consumer Service Centre at its
Headquarters at Mysuru with state of the art facility / system for
receiving consumer complaints and monitoring their redressal
so that electricity consumers in its area of supply are able to
seek and obtain timely and efficient services / redressal in the
matter of their grievances.
29 numbers of 24x7 service stations are established at 19 sub-
divisions. These service stations are equipped with vehicles,
crew, safety kits and maintenance materials for effective
redressal of consumer complaints. Further, there are 32 service
stations yet to be established in the sub-divisions/sections and
the same will be established by March, 2018.
clxxiv
Infrastructure at call Centre:
Single window customer care centre is connected directly to
data centre; for online user service.
Call centre is equipped with IVRS server, 15 PCs, IP phones, Fax
server etc.
Customers can call Toll Free telephone number 1800-425-1916.
The toll free number is published in all leading newspapers,
Company web site & also printed at the back of the monthly
consumer electricity bills, so that consumers can utilize this
facility for their queries.
Call centre has IVRS server facility for operator free customer
interaction.
Manpower at Customer Care Centre:
An Assistant Engineer, 4 team leaders and 16 customer care
representatives (CCR) are working at customer care centre.
One team leader with 4 CCRs are working round the clock to
address the customer complaints/requests.
Work at Customer Care Centre:
Wide publicity has been given to the helpline number “1912” by
publishing in all leading English and Kannada newspapers. A
caller tune has been implemented in all CUG Mobile Numbers of
CESC officers/service station to intimate public to call “1912” for
registration of electricity complaints.
A complaint received at customer care centre will be registered
immediately in the software and docket numbers are intimated
simultaneously to consumers and to the concerned sub-
divisional officer/ section officer or local service station
automatically via SMS to their mobile numbers. Once the
complaint is resolved, the status of complaint will be updated by
concerned sub-divisional officer/ section officer / local service
station or customer care executive, closing the docket. The
clxxv
consumers can also track the status of their complaint through
online.
The complaints which are not solved as per SoP will be
escalated to higher officers.
Web based PGRS (Public Grievance Redress system) software is
installed successfully on 22.9.2015 and working satisfactorily
enabling fast complaint registration and redressal at customer
care centre. Provision of consumer complaints registration
through various sources like; helpline, SMS, Email, Web,
Facebook and retrieving of consumer history is available in the
software.
Further, the CESC is taking all steps to ensure that, complaints of
consumers are registered only through the centralized consumer
service Centre, for proper monitoring of disposal of complaints
registered. The CESC has also published the contact number of the
centralized Consumer Service Centre regularly in the local media
and other modes like FM Radio periodically for the information of
public for ensuring that all the complaints of consumers are
registered only through the centralized consumer service Centre, for
proper monitoring of disposal of complaints registered.
Commission’s Views:
The Commission takes note of the fact that CESC has established a
24x7 customer care centre and has taken various measures for
redressal of consumer complaints. The CESC should continue its
efforts in improving delivery of consumer services to reduce the
consumer complaint downtime so as to ensure that prompt services
are extended to them. In this regard, the CESC should develop
necessary capacity and infrastructure for prompt and effective
response to attend to the consumer complaints regarding
breakdown of lines/equipment, failure of transformers etc., resulting
in interruptions in power supply. In addition to this, the CESC should
clxxvi
take up necessary action to continuously sensitize its field staff so that
they need to discharge their work efficiently and effectively.
The Commission reiterates its directive to the CESC to publish the
complaint handling procedures / contact number of the centralized
Consumer Service Centre in the local media and other modes
periodically for the information of the public and ensure that all the
complaints of consumers are registered only through the centralized
consumer service centre for proper monitoring of disposal of
complaints registered. The compliance in this regard shall be
furnished regularly once in a quarter, to the Commission.
vii. Directive on Energy Audit:
The Commission had directed the CESC to prepare a metering plan
for energy audit to measure the energy received in each of the
Interface Points and to account for the energy sales. The
Commission had also directed the CESC to conduct energy audit
and chalk out an Action Plan to reduce distribution losses to a
maximum of 15 per cent wherever it was above this level in towns/
cities having a population of over 50,000.
The Commission had earlier directed all the ESCOMs to complete
installation of meters at the DTCs by 31st December, 2010. In this
regard the ESCOMs were required to furnish to the Commission the
following information on a monthly basis:
a) Number of DTCs existing in the Company.
b) Number of DTCs already metered.
c) Number of DTCs yet to be metered.
d) Time bound monthly programme for completion of work.
Compliance by the CESC:
The energy audit of all the feeders as per the formats prescribed
by the Commission is being submitted from December, 2015,
onwards. So far the energy audit of 439 feeders and 4,779
clxxvii
DTCs has been submitted. The energy audit for the month of
April, May and June, 2016 has already been submitted to the
Commission.
The distribution loss calculation for the FY16 for all the existing
1,396 feeders is calculated and has been furnished to the
Commission vide letter No: CESC/GM(Coml.)/ RA-1/2/16-
17/7630/21.07.2016. The same has been enclosed as Annexure-
2.
Status as on 30-09-2016:
i. 372 numbers of exclusively agricultural feeders have been
commissioned. There are 37,028 distribution transformers on
these feeders. Metering is not required in respect of these
transformers as the feeder consumption is being considered for
calculation of IP-set consumption.
ii. 8,261 numbers of water supply installations have been serviced
and all of them are in rural areas. Each of these water supply
installations has been provided with an independent distribution
transformer. As such metering is not required in respect of these
transformers also.
iii. 27,289 numbers of DTCs have to be provided with meters. The
details are furnished below:
PARTICULARS EXISTING
DTCS
METERED
DTCS
DTCS WHERE
METERS ARE
NOT
REQUIRED
DTCS TO BE
METERED
Urban
( non-
RAPDRP)
6,122 3,723 0 2,399
Urban
(RAPDRP) 7,064 7,064 0 0
Rural 86,877 16,698 45,289 24,890
Total 1,00,063 27,485 45,289 27,289
clxxviii
Energy Audit of Towns under R-APDRP:
MDA/MDM Modules of R-APDRP towns are under UAT stage.
M/s Infosys, along with R-APDRP nodal officer of BESCOM, is
conducting UAT at Bengaluru. The percentage of completion is
around 85. The UAT of these modules will be completed within
December 2016 and once it is completed and proper
consumer tagging is done, the energy audit of feeders/DTC will
be made available in the RAPDRP-portal. At present town-wise
energy audit of R-APDRP towns is available and it is consistent.
The same has been submitted to PFC, New Delhi also.
GIS - Mapping of network assets and consumers, to the R-
APDRP system is being affected once in six months and
recently (October, 2016) second iteration for all the twelve
towns is completed and is being updated. However, updating
the data by M/s Infosys in R-APDRP system will be completed by
the end of November, 2016.
The town-wise/ city-wise energy audit of RAPDRP towns/cities
for FY16 as well as for FY17 up to September, 2016 is enclosed
as Annexure-6 and Annexure 6a.
In respect of rural DTCs, the consumption of exclusive agricultural
feeders is being obtained from the sub-stations, after completion of
the works of bifurcation of agricultural and non-agricultural feeders
under the NJY scheme. So far, as at the end of September 2016, 372
exclusive agricultural feeders are existing in the CESC.
The Metering of non-agricultural DTCs will also be taken up
at the earliest.
The loss levels of distribution transformers (including those
under RAPDRP) for which energy audit has been carried out
as at the end of September, 2016 are as given below:
clxxix
MONTH
/ YEAR
TOTAL NO. OF DTCS
FOR WHICH ENERGY
AUDITED
DTC ENERGY LOSS ANALYSIS
Urban Rural Total <5% 5-10% 10-20% 20-30% >30%
April’16 6,383 385 6,768 2,501 2,719 1,252 261 35
May’16 6,445 389 6,834 2,547 2,723 1,407 133 24
June’16 6,477 314 6,791 2,645 2,644 1,383 109 10
July’16 6,507 281 6,788 2,877 2,435 1,372 98 6
Aug’16 6,935 309 7,244 2,938 2,774 1,390 137 5
Sep’16 6,262 433 6,695 3,003 2,387 1,125 178 2
The loss levels of distribution transformers for which energy
audit has been carried out for FY 6 are as given below:
MONT
H /
YEAR
TOTAL NO. OF DTCS
FOR WHICH ENERGY
AUDITED
DTC ENERGY LOSS ANALYSIS
Urban Rur
al
Total <5% 5-
10%
10-20% 20-
30%
>30%
April’1
5
2,868 45 2,913 1,43
5
1,01
9
421 36 2
May’1
5
2,889 45 2,934 1,42
8
1,04
7
434 23 2
June’1
5
2,994 45 3,039 1,51
7
1,05
5
450 17 0
July’1
5
2,942 45 2,987 1,39
1
1,07
3
500 21 2
Aug’1
5
2,910 10 2,920 1,31
1
1,14
8
429 30 2
Sep’1
5
3,346 10 3,356 1,32
3
1,24
0
743 35 15
Oct’1
5
3,618 14 3,632 1,51
8
1,33
2
718 57 7
Nov’1
5
3,874 41 3,915 1,61
2
1,49
8
736 63 6
Dec’1
5
4,165 85 4,250 1,62
5
1,78
9
800 30 6
Jan’16 5,539 158 5,697 2,40
9
2,15
2
905 116 115
Feb’1
6
6,076 185 6,261 2,55
0
2,43
5
1,088 160 28
Mar’1
6
6,324 99 6,423 2,49
7
2,51
6
1,215 174 21
Action is being initiated to bring down the losses in respect of
transformers where the losses are more than 10 per cent. The
clxxx
remedial measures initiated to reduce loss levels are indicated in
Annexure- 7.
Further, the CESC has furnished the details of energy audit for FY16 as
well as FY17 (upto September 2016) vide Annexures 6a and 6b in the
application for APR for FY16. However, the energy audit details for
FY17 up to November 2016 are enclosed as Annexure-18. The action
plan for reduction of loss levels has been furnished vide Annexure-7
to the application for APR for FY16. The comparative statement of
losses recorded in towns and cities for FY16 as against FY15 are
enclosed vide Annexure- 19.
The reasons for not taking up the energy audit of all DTCs, where the
meters have been provided are as follows:
Metered DTCs are idle without loads
Display/ MNR problems.
Meter burnt out.
CT failures.
Meters are not synchronized in AFT Web Link.
Communication issues remain in rural area and problems in
establishing communication with modems are being
encountered.
Tagging of installations to the DTC is underway and whenever
new transformers are commissioned, creation of new transformer
code and transfer the installations to these new DTCs could not
be carried out easily due to software constraint. Now bulk
shifting of installations from one DTC to other is made available in
the TRM software.
Commission’s Views:
It is observed that the monthly energy audit reports of cities/towns
with detailed analysis are not being submitted by the CESC regularly
to the Commission. The Commission directs the CESC to conduct
energy audit of identified cities/towns and initiate necessary
clxxxi
measures on the basis of energy audit results to reduce the technical
losses and improving collection efficiency to achieve the mandated
A T & C loss of less than 15 per cent. The CESC is directed to submit
compliance thereon regularly to the Commission.
The Commission further notes that the CESC despite completing
significant percentage of the metering of the DTCs, it has failed to
take up DTC-wise energy audit, citing non-completion of tagging of
consumer installations with the concerned feeders/DTCs, CT failures
and synchronization issues. The stand repeatedly taken by the CESC
for the last three years that tagging of consumer details with the
concerned feeders/DTCs is not completed does not augur well for
the Company which wants to run its business on commercial
principles. This shows that the CESC is not serious about conducting
energy audit and taking remedial measures to reduce losses in order
to run its business efficiently. The Commission views with displeasure,
the delay on the part of the CESC to complete the tagging of
consumer installations and take up the DTC-wise energy audit.
The CESC is directed to take up energy audit of DTCs where meters
have already been installed and to initiate remedial measures for
reducing energy losses in the distribution system. The compliance in
respect of DTC-wise energy audit conducted with analysis and the
remedial action initiated to reduce loss levels shall be submitted
every month regularly to the Commission.
Further, the CESC is directed to submit to the Commission the
consolidated energy audit report for the FY17, as per the formats
prescribed by the Commission, vide its letter No: KERC/D/137/14/91
dated 20.04.2015, before 15th May, 2017.
vii. Directive on Implementation of HVDS:
In view of the obvious benefits in the introduction of HVDS in
reducing distribution losses, the Commission had directed the CESC
clxxxii
to implement High Voltage Distribution System in at least one O&M
division in a rural area in its jurisdiction by utilizing the capex provision
allowed in the ARR for the year.
Compliance by the CESC:
In the present scenario, CESC is putting up one DTC for each
Ganga Kalyana IP-set as well as water supply installations and
is providing one DTC for every three IP-sets serviced under
regularization scheme.
DTCs provided for the above works are large in number and are
analogous to HVDS concept.
As on 30.09.2016, there are 1,495 feeders in CESC (Agri-372,
Rural-413, NJY-266, Urban-444)
Bifurcating non-agricultural loads from rural feeders is being
undertaken and this addresses all our load needs. Therefore,
this is the reason that the Board of Directors have decided to
do away with HVDS in CESC, because it would be a waste of
public funds to invest in non-productive scheme.
It has been CESC’s view that HVDS is not required in its area as the
coverage of NJY under phase-1 and phase-2 is massive (number of
feeders added 306, number of transformer added 9,495).
The table below gives an overview of the DTCs added, HT/LT line
added and HT/LT ratio in CESC for the past five years.
Year 2011-12 2012-13 2013-14 2014-15 2015-16
DTCs added 3,780 6,004 10,829 10,057 10,172
HT line added 1,313.43 1,726.42 4,514.02 5,164.98 4,323.80
LT line added 971.30 1,082.26 1,800.56 1,842.36 4,260.55
HT lines 31,252.12 32,978.55 37,492 42,657 46,981
LT lines 70,392.07 71,474.33 73,275 75,117 79,378
HT/LT ratio 1:2.25 1:2.16 1:1.95 1:1.76 1:1.68
It can be seen from the above that there is a huge jump in number
of DTCs and the HT lines added during every year from 2013-14
onwards. This addition has effectively decreased HT/LT ratio to 1:1.68
by FY-16. Further, the trend is maintained even in the FY17.
clxxxiii
Commensurately, distribution loss is also seen in the downward trend
and the CESC is achieving the stipulated target figure approved by
the Commission in this regard.
Commission’s Views:
The Commission has been directing the ESCOMs to identify one
sub-division in each ESCOM with high LT / HT ratio and high
distribution loss levels, so that substantial loss reduction could be
achieved by implementing the HVDS in such sub-divisions. Further,
the Commission, with a view to bring down the cost of
implementation of HVDS, had issued revised guidelines to all the
ESCOMs directing them to implement the HVDS in their sub-
divisions/feeders having the highest distribution losses.
However, the CESC has not taken up implementation of HVDS in its
jurisdiction contending that providing one DTC for every three IP-
sets serviced under regularization scheme is akin to implementation
of HVDS.
The Commission is of the view that implementation of the HVDS for
the agricultural feeders segregated under NJY scheme, wherever
high losses are prevailing, is necessary to reduce the distribution
losses significantly. However for the present, the Commission has
taken note of the decision of the CESC that it has decided not to
implement HVDS in its jurisdiction citing various reasons in support of
its decision.
viii. Directive on Nirantara Jyothi – Feeder Separation:
The ESCOMs were directed to furnish to the Commission the
programme of implementing taluk wise 11 KV feeders segregation
with the following details
a) Number of 11 KV feeders considered for segregation.
b) Month wise time schedule for completion of envisaged work.
c) Improvement achieved in supply after segregation of feeders.
clxxxiv
Compliance by the CESC:
NJY Phase-1:
The CESC has taken initiatives to commission the completed feeders
on top priority and to complete and commission the feeders where
the works are in progress. An action plan was made and 125 feeders
have been commissioned under NJY phase-1 as at the end of
October, 2016. Action is being taken to commission the remaining
feeders.
Further, the works are under progress in 5 feeders and the same will
be completed before December, 2016. The delay in completion of
these 5 feeders was due to pending approvals from the Railway /
Forest authorities.
The progress of NJY phase-1 as at the end of October, 2016, and
action plan to complete the works are as detailed below:
NO.
OF
TALUK
AS
COVE
RED
TOTAL
FEEDE
RS
FEEDERS ACTION PLAN
completed commissio
ned
balan
ce
Nov
’16
Dec
’16 Total
10 135* 130 125 5 2 3 5
*As per DPR, 161 NJY feeders were proposed, however, due to field
constraints, work on 26 feeders could not be taken up and the same is
proposed to be taken up in DDUGJY for which tenders are invited.
NJY Phase-2:
Out of 235 feeders proposed, works on 196 feeders have been
completed, out of which 176 feeders have been commissioned as at
the end of October 2016. Action is being taken to commission the
completed feeders.
Out of the remaining 39 feeders, work is in progress in 27 feeders and
the works on 12 feeders are to be taken up.
clxxxv
The progress of NJY phase-2 works as at the end of October, 2016,
and action plan for completing the works are as detailed below:
NO. OF
TALUKS
COVERED
TOTAL
FEEDERS
FEEDERS
completed commissioned Balance
14 235 196 176 39
The CESC is taking all the necessary measures to complete and
commission the proposed feeder works under NJY scheme as per
the action plan.
Further, M/s CPRI has been entrusted with the task of analysing the
benefits to the system post implementation of NJY scheme and the
report will be submitted to the Commission in due course.
Further, regular inspections and patrolling are being conducted by
the O&M staff to ensure that NJY feeders are not tapped illegally for
running IP-sets. Nine cases of unauthorized tapping of IP sets on NJY
feeders have been booked and one consumer in Kollegal has also
been imprisoned. The details are furnished below:
SL.
NO DATE DIVISION NAME CL UNITS
BBC
IN RS
COMPOUNDING
FEE IN RS
1
21-
05-
16
Mandya Shivaswamy
S/o Nanjaiah 4kW 8460 77,414 6,000/-
2
23-
05-
16
Mandya
Devegowda
S/o late
Chikkakarigowda
5HP 675 6,588 10,000/-
3
27-
05-
16
Maddur Basavaraju
S/o Rachaiah 5 HP 2686 26,215 10,000/-
4
03-
06-
16
Mandya Buragegowda
S/o late Lingaiah
3.75
KW 2025 19,764 5,000/
5
03-
06-
16
Mandya
Siddaiah
S/o
Thimmegowda
4.75
kW 4050 39,528 10,000/
6
07-
06-
16
Mandya Devegowda
S/o Kalegowda 6 kW 2160 21,082 8,000/
ACTION PLAN
Nov’16 Dec’16 Jan’17 Feb’17 Mar’17 Total
6 6 6 9 12 39
clxxxvi
SL.
NO DATE DIVISION NAME CL UNITS
BBC
IN RS
COMPOUNDING
FEE IN RS
7
21-
06-
16
Mandya Shankaregowda
S/o Sannegowda 3.75kW 2700 26,352 10,000/-
8
21-
05-
16
Kollegal Siddamallappa
S/o K. Basappa 3.75kW 8100 71,928 10,000/-
9
08-
07-
16
Nanjanagud Kariyappa
S/o Bettegowda 3.75kW 1343 13,108 10,000/-
Commission’s Views:
The Commission notes that the CESC has commissioned totally 301
feeders under both NJY phase 1&2. But, it has not expedited total
commissioning of the NJY works. In fact, there has been an
inordinate delay on the part of the CESC in completion of the NJY
works, across its jurisdiction which has only resulted in non-realization
of envisaged benefits set out in the DPR when the project was
initiated.
The CESC is hereby directed to complete and commission the
remaining 44 feeders expeditiously and thereafter carry out the
analysis of those feeders so as to ensure that the objectives set out
as per the DPR are accomplished. Further, the CESC shall continue to
ensure that NJY feeders are not tapped illegally for running IP-sets
which would defeat the very purpose of feeder segregation scheme
undertaken at huge cost. The consumers who are found to be
tapping the NJY feeders need to be dealt with seriously for theft of
energy. The field officers/officials who fail to note and curb illegal
tapping shall be personally held responsible for these irregularities.
Further, the Commission notes that the CESC has not carried out the
analysis of feeders already commissioned under NJY phase 1&2. The
Commission is of the view that the benefits accrued to the system in
terms of reduction in failures of distribution transformers;
improvement in tail-end voltage; improvement in supply/reduction in
interruptions and increase in metered consumption needs to be
known by conducting proper analysis. It is also necessary to know
whether such analysis reveals that the consumers are satisfied in the
clxxxvii
wake of increased number of hours of availability of quality power,
post implementation of NJY.
Further, it is noted that the CESC has already segregated significant
number of feeders under NJY phase1 & 2 works and consequent to
this, agricultural feeders are exclusively used to supply power to rural
IP loads and the energy consumed by the IP-sets could be more
accurately measured at the 11 KV feeders at the sub-stations after
duly allowing for distribution losses in 11 KV lines, distribution
transformers and LT lines. The CESC is directed to report every month,
specific consumption and the overall IP-set consumption only on the
basis of data obtained from agricultural feeders’ energy meters as
per the formats prescribed by the Commission.
The Commission reiterates its directive to the CESC to continue to
furnish the details of feeder-wise IP-set consumption based on the
data of energy meters fixed to the 11 KV feeders, to the Commission,
every month in respect of agriculture feeders segregated under NJY.
ix. Directive on Demand Side Management in Agriculture:
In view of the urgent need for conserving energy for the benefit of
the consumers in the State, the Commission had directed the CESC
to take up replacement of inefficient pumps with energy efficient
pumps approved by the Bureau of Energy Efficiency, at least in one
sub-division in its jurisdiction.
Compliance by the CESC:
A pilot project of Agriculture DSM in Malavalli Taluk of Mandya district was
taken up for implementation after entering into an agreement with M/s
EESL, New Delhi, on 06.08.2013. In this programme, the existing inefficient
pump sets are to be replaced by energy efficient pump sets at free of cost
to farmers. The details are as follows:
clxxxviii
As on date, the CESC has replaced 1,337 IP sets coming under
five 11kV feeders of Malavalli taluk by energy efficient pump
sets.
It has been proposed for replacement of 1,753 existing IP-sets
with energy efficient pump sets in Varuna and TN Pura area of
Mysuru district.
Further, as per the directions of Energy Department, GoK, a list
containing the details of one lakh inefficient pump sets were
furnished in the required format for replacement of the same
by energy efficient pump sets, wherein 1,753 pump sets of
Varuna and TN Pura were also included. After approval of the
project, the detailed project report will be submitted before to
Commission.
Commission’s Views:
The Commission notes that there is no change in status of
replacement of inefficient irrigation pump sets by efficient pump sets,
as compared to the previous year. It is also noted that the agriculture
DSM project to be taken up by the CESC in T.N. Pura and Varuna
areas of Mysuru district covering 1,753 numbers of IP-sets, has not
progressed as targeted. It is important that the CESC expedites this
work so as to complete it in time to enable the farmers to avail the
benefits of this scheme at the earliest. Further, the CESC should also
give emphasis on implementation of DSM measures in the other parts
of its jurisdiction as the results of the pilot project as reported by it
have indicated that around 36 per cent savings in energy due to
replacement of inefficient pumps with efficient ones. Therefore, the
CESC needs to focus on early implementation of DSM measures by
necessary coordination with all the stakeholders concerned agreeing
on crucial measurement and verification methodology for scaling up
the DSM measures in its entire jurisdiction.
The Commission directs the CESC to expedite implementation of
agriculture DSM project in T.N. Pura & Varuna and submit the
clxxxix
compliance thereon to the Commission within three months from the
date of this Order.
x. Directive on Lifeline Supply to Un-Electrified Households:
The Commission had directed the ESCOMs to prepare a
detailed and time bound action plan to provide electricity to
all the un-electrified villages, hamlets and habitations in every
taluk and to every household therein. The action plan was
required to spell out the details of additional requirement of
power, infrastructure and manpower along with the shortest
possible time frame (not exceeding three years) for achieving
the target in every taluk and district. The Commission had
directed that the data of un-electrified households could be
obtained from the concerned Gram Panchayaths and the
action plan be prepared based on the data of un-electrified
households.
Compliance by the CESC:
Under RGGVY 12th Plan, the electrification of un-electrified
households of previous Plans and newly added un-electrified
households were proposed in all the 5 districts of CESC and the
details are as follows:
SL.
N
O
DISTRICT
NO. OF
HABITATI
ONS
COVERED
NO. OF
BPL
HOUSEH
OLDS
NO. OF
RURAL
HOUSEHO
LDS
PROJ
ECT
COST
IN RS
CRO
RE
SANCT
IONED
BY
M.O.P
1 Mysuru 1,621 14,274 33,401 18.84 Yes
2 Mandya 1,610 10,824 23,336 12.48 Yes
3 Chamarajnaga
ra
681 10,504 20,099 19.69 No
4 Hassan 3,515 23,316 40,157 30.35 No
5 Coorg 435 6,287 21,177 12.92 No
Total 7,862 65,205 1,38,170 94.30
cxc
Survey and preparation of DPR was entrusted to M/s RECPDCL,
New Delhi.
Sanction from MoP for electrification of households in Mysuru
and Mandya districts is obtained. A LoI has already been
issued and the works are in progress in these two districts.
Sanction for Chamarajnagar, Hassan and Coorg districts were
pending. But, before sanction of these schemes, DDUGJY
scheme was launched.
The CESC has identified 67 hamlets covering 2,772 BPL
households to electrify hamlets and BPL households under DDG
(Decentralized Distributed Generation) scheme. The following
are the details:
a. 29 hamlets, covering 1,539 BPL households have been
sanctioned by “REC”. DWA has been issued on 16.11.2015
for two packages and on 02.01.2016 for one package.
b. 11 hamlets, covering 818 BPL households have been
sanctioned by “REC”. Tender was invited and the evaluated
reports have been sent to REC on 14.09.2016 for approval.
c. In respect of 27 hamlets, covering 415 BPL households,
tender has been processed in anticipation of approval from
REC. The tender evaluation report has been sent to REC on
14.09.2016, for approval.
The details of un-electrified Rural Households (RHh) identified and the
progress achieved as on 31.08.2016 is as follows;
NO. OF UN-
ELECTRIFIED
HOUSEHOLDS
IDENTIFIED AS AT
THE END OF
MAR’16
NO. OF UN-
ELECTRIFIED
HOUSEHOLDS
ELECTRIFIED
FROM APRIL’
TO AUG’16
BALANCE
TO BE
ELECTRIFIED
TARGET DATE
FOR
COMPLETION
1,99,700 28,058 1,71,642 Dec’ 2018
It is proposed to cover the above un-electrified RHh under various
schemes as detailed below:
cxci
Note:
Under DDUGJY scheme, it was proposed to electrify 1,02,048 BPL
households. But, as per revised allocation given for rural
electrification works, it is proposed to electrify 58,269 un-
electrified rural households (covering 48,768 BPL households)
under DDUGJY scheme over a period of 2 years from the date
of award of works. A Notification Inviting Tender (NIT) has been
published on 03.09.2016.
Since the revised allocation given for RE works under DDUGJY is
not sufficient to cover all the un-electrified households, a
proposal has been forwarded to REC to sanction DPR submitted
under RGGVY XII Plan for 3 districts under DDUGJY scheme to
cover electrification of balance un-electrified rural households.
The total number of households electrified up to November 2016
under various schemes in the CESC is 31,508.
Commission’s Views:
SCHEME AREA COVERED
NO. OF UN-
ELECTRIFIED
RURAL
HOUSEHOLDS
COVERED
REMARKS
RGGVY 12th
Plan
Mysuru and
Mandya districts 56,666
Work is in
progress
DDG
67 hamlets of
Mysuru, Kodagu
and
Chamarajanagara
districts
28,00 DWA issued for
29 hamlets
DDUGJY
Mysuru, Mandya,
Hassan,
Chamarajanagar
& Kodagu districts
58,269
Tender invited
on 03.09.2016
for all 5 districts
DDUGJY
additional
proposal (left
out RGGVY
12th Plan)
Hassan,
Chamarajanagara
& Kodagu districts
81,965
Proposal
submitted to
REC for
additional
sanction
Total 1,99,700
cxcii
The Commission expresses its displeasure over the CESC’s tardy
progress and apparent lack of seriousness in electrification of un-
electrified households, in its jurisdiction. Even after lapse of so many
years there are a large number of households without electricity,
which is a matter of serious concern.
Further, the Commission concerned about the slow pace of progress
of this programme, in its previous Tariff Orders had directed the CESC
to cover electrification of 5 per cent of the total identified un-
electrified households every month beginning from April, 2015 so as
to complete this programme in about twenty months. However, the
progress achieved in electrification of households so far by the CESC
is disappointing.
The Commission therefore directs the CESC to initiate action to
provide electricity to the un-electrified households and cover all the
remaining households, expeditiously and report compliance thereon
to the Commission on the monthly progress achieved from May,
2017 onwards. The Commission, as already indicated in the earlier
Tariff Orders, would be constrained to initiate penal proceedings
under section 142 of the Electricity Act, 2003, against CESC, in the
event of its continued non-compliance of the directive.
xii. Directive on Implementation of Financial Management
Framework:
The present organizational set up of the ESCOMs at the field level
appears to be mainly oriented to maintenance of power supply
without a corresponding emphasis on realization of revenue. This has
resulted in a serious mismatch between the power supplied,
expenditure incurred and the revenue realized in many cases. The
continued inability of ESCOMs to effectively account the input
energy and its sale in different sub-divisions of the ESCOM in line with
the revenue realization rate fixed by the Commission, urgently calls
for a change of approach by the ESCOMs, so that the field level
cxciii
functionaries are made accountable for ensuring realization of
revenues vis-à-vis the input energy supplied to the jurisdiction of sub-
division/ division.
The Commission had therefore directed the CESC to introduce a
system of Cost-Revenue Centre Oriented sub-divisions at least in two
divisions, on a pilot basis, in its operational area and report the results
of the experiment to the Commission.
Compliance by the CESC:
As directed by the Commission, the CESC has implemented the
model suggested by the consultant M/s PWC in its entire jurisdiction
covering all the divisions & sub-divisions to bring in accountability in
relation to the quantum of energy recovered, sold and its cost in
order to conduct the business on commercial principles.
Further, the CESC has reviewed the performance of the divisions for
the period from April to September 2016 in respect of energy
received, sold, average revenue realization and average cost of
supply using the financial framework as directed in the Tariff Order.
The following areas for each month and as well as cumulative
performance of the divisions are being analyzed at corporate level.
1) a) Target Losses fixed and achievement level at each stage.
b) Target revenue to be billed and achievement level at each
category.
c) Targeted revenue to be collected and achievement level at
all categories.
2) Targeted distribution loss reduction when compared to previous
years’ losses.
3) Comparison of high performance divisions in sales with low
performance divisions.
cxciv
Further divisional officers have been directed to implement the same
model at their sub-division levels. In this regard, workshops were also
conducted at the corporate office.
The following measures have been taken to reach to targeted ARR
and also achieve 100% collection efficiency.
1. Revenue Monitoring cell has been created for exclusively
monitoring the 100% billing, collection along with arrears of
previous months, analyzing sub normal consumption pattern,
ensuring correct metering constants in billing, age-wise arrears’
analysis to be collected, replacement of not recording meters
etc.
2. Introducing Android mobile billing system.
3. Introducing photo billing system in order to ensure the correctness
of meter reading.
4. SMS alerts to consumers regarding due date for electricity bill
payment.
The CESC has achieved 97.82 % collection efficiency and 86.83 %
billing efficiency from April to September 2016.The revenue demand
achieved for FY16 is Rs. 5.54 as against the KERC approved demand
of Rs. 5.67.
The analysis of the performance of all the divisions during
September16 using the financial framework is enclosed as
Annexure-3.
Commission’s Views:
The Commission had entrusted a study to the Consultants, M/s PWC,
on implementation on Financial Management Framework to bring in
accountability on the performance of the divisions / sub-divisions by
analyzing the quantum of energy received, sold and cost so that the
ESCOMs conduct their business on commercial principles. The
Consultants had completed the study and submitted a report, which
was forwarded to all the ESCOMs for its implementation.
cxcv
The CESC has not submitted the compliance report in respect of
implementation of Financial Management Framework, on quarterly
basis to the Commission. The CESC is directed to submit the
compliance regularly as directed.
The Commission notes that the CESC has taken up monitoring of the
performance of divisions, using the financial framework Model
suggested by the Consultants. The CESC is directed to continue
reviewing the performance of the divisions & sub-divisions in relation
to total energy received, sold, average revenue realization and
average cost of supply using the Model. Further, the CESC is directed
to analyze the following parameters for each month to monitor the
performance of the divisions/sub-divisions at corporate level.
a) Target losses fixed and the achievement.
b) Target revenue to be billed and achievement.
c) Target revenue to be collected and achievement.
d) Targeted distribution loss reduction when compared to
previous years’ losses.
e) Comparison of high performance divisions in sales with low
performance divisions.
Based on the analysis, the CESC needs to take remedial measures to
ensure100 per cent meter reading, billing, and collection.
The Commission reiterates its directive that the CESC shall review the
performance of its divisions & sub-divisions using the financial
management framework model and report compliance thereon on
a quarterly basis to the Commission.
xiii. Directive on Prevention of Electrical Accidents:
The directive was as follows:
“The Commission has reviewed the electrical accidents that
have taken place in the State during the year 2015-16 and with
regret noted that as many as 430 people and 520 animals
have died in the State due to these accidents.
cxcvi
From the analysis, it is seen that the major causes of these
accidents are due to snapping of LT/HT lines, accidental
contact with live LT/HT/EHT lines, hanging live wires around the
electric poles /transformers etc., in the streets posing great
danger to human lives.
Considering the above facts, the Commission had directed the
CESC to prepare an action plan to effect improvements in the
transmission and distribution networks and implement safety
measures to prevent electrical accidents. Detailed division
wise action plans shall be submitted by the CESC to the
Commission.
Compliance by the CESC:
The details of electrical accidents that have occurred during 2015-16
and up to September 2016 are appended below:
SL.
N
O
YEAR
NO OF
ACCIDE
NTS
DEPARTMEN
TAL
NON -
DEPARTME
NTAL
ANI
MAL
S
COMPEN
SATION
PAID IN
RS LAKH
Fatal
Non-
fatal
Fat
al
Non
-
fata
l
1 2015-16 192 5 25 58 25 79 77.95
2
2016-
17(up to
Sep’16)
101 2 10 32 8 49 34.24
A copy of the Safety Technical Manual prepared by the sub-
Committee comprising of experts from the Advisory Committee
constituted by the Commission has been uploaded on the CESC’s
website for the benefit of all the employees as well as the
consumers.
cxcvii
Further, in order to prevent electrical accidents and spread
awareness on conservation of energy and safety, following action
plan has been initiated in the CESC.
Identifying and rectification of hazardous installations like
providing intermediate poles to lengthy spans, replacement of
deteriorated service wires/conductors/poles, replacement of
lower size conductor by higher size, restringing of loose spans,
shifting the transformers and lines which are close to buildings or
in dangerous locations etc.
Proper periodical and preventive maintenance of the
distribution system and cutting of tree branches coming in
contact with power lines.
Providing all safety equipment to linemen and surprise
inspection of works to check use of safety equipment by them.
Conducting safety meetings at section offices, to train the
maintenance staff regarding use of safety equipment and
safety procedures while working on lines like earthling on both
sides of working zone, use of hand gloves, insulated tools,
adherence to line clear procedure etc.
Issuing Notices to consumers constructing the buildings near
distribution network and to ensure proper clearances before
servicing of new installations.
Educating the consumers through media, interaction meetings,
distributing pamphlets, regarding the safety precautions to be
taken by them to avoid accidents.
Exhibiting the safety advertisements containing safety aspects in
prime locations during public programme, to educate the
general public regarding the safety precautions to be taken to
avoid accidents.
Safety awareness advertisement at Railway Stations, Chandana
TV Programme, Vividabharati Radio Programme.
Safety awareness through street plays.
Highlighting the issues of conservation of energy and prevention
of electrical accidents on the reverse of the monthly electricity
bills.
Displaying hoardings at all district Headquarters and all offices of
the CESC.
cxcviii
Conducting quiz program, essay competition and debates
among students studying in High schools, ITI and Diploma
institutions.
Progress regarding action taken for reduction of electrical accidents as
at the end of September 16
Sl
No Details of Action taken
O&M
Mysuru
CH
nagar-
Kodagu
Mandya Hassan Total
1
Replacement of
damaged/
deteriorated
RCC/PSC, I Beam,
Tubular, Ladder,
Wooden poles
Nos 598 1,146 732 906 3,382
2
Replacement of
deteriorated
Aluminium conductor
Ckm 6.92 112 6.4 0 125.32
3 Enhancement of size
of conductor Ckm 5.99 0 3.77 0 9.76
4 Replacement of
copper conductor Ckm 0 0 0.5 0 0.5
5 Providing
intermediate
poles
HT line Nos 209 6,497 80 321 7,107
6 LT line Nos 265 2,964 91 1,754 5,074
7 No of slanted poles
set right Nos 296 604 140 1,313 2,353
8
No of places where
lines close to/ above
the buildings are
shifted
Nos 123 164 11 112 410
9
No of places where
the transformers are
shifted to safe place
Nos 10 19 8 4 41
10
No of poles where
jumbled service main
connections are set
right
Nos 822 2,108 35 937 3,902
11
No of poles where LT
kits/ MCCBs are
provided
Nos 30 127 50 0 207
12 Aerial bunched
cables provided kms 7.133 0 1.77 0 8.903
13
No of awareness
programs for public
conducted
Nos 84 12 9 39 144
14
No of training
programs to field
staff conducted
Nos 39 15 4 231 289
cxcix
Sl
No Details of Action taken
O&M
Mysuru
CH
nagar-
Kodagu
Mandya Hassan Total
15
No of other
preventive
maintenance works
like tree cutting,
restringing of wires,
providing proper
fuses, replacement of
lead wires, providing
proper earthing etc.,
is carried out
Nos 1,018 1,477 107 2,564 5,166
Progress regarding action taken for reduction of electrical accidents up
to March, 2016 (15-16)
SL.
NO.
DETAILS OF ACTION
TAKEN
O&M
MYSU
RU
CH
NAGAR
-
KODA
GU
MAND
YA
HASS
AN
CESC
TOTAL
1
Replacement
of damaged/
deteriorated
RCC, PSC,
I-Beam,
Tubular,
Ladder,
Wooden Poles
Nos 1,588 1,872 1,208 875 5,543
2
Replacement
of deteriorated
Aluminium
Conductor
Ck
m
35.68
5 145 46 2.845 229.53
3
Enhancement
of size of
Conductor
Ck
m
76.05
5 0
128.70
7 0 204.762
4
Replacement
of Copper
Conductor
Ck
m 3.71 1.68 14.24 0 19.63
5 Providing
intermediate
poles
Nos 767 4,719 272 4,091 9,849
6 Nos 670 2,343 289 1,519 4,82
1
7 No of slanted
poles set right Nos 1,233 1,075 477 1,907 4,692
8
No of places
where lines
close to
/above the
buildings are
shifted
Nos 509 218 42 413 1182
9 No of places Nos 123 40 35 57 255
cc
SL.
NO.
DETAILS OF ACTION
TAKEN
O&M
MYSU
RU
CH
NAGAR
-
KODA
GU
MAND
YA
HASS
AN
CESC
TOTAL
where the
transformers
are shifted to
safe place
10
No of places
where jumbled
service main
connections
are set right
Nos 1,762 3,587 116 2,789 8,254
11
No of places
where LT kits
/MCCBs are
provided
Nos 221 448 155 95 919
12
No of places
where Aerial
Bunched
cables are
provided
Nos 5 20 0 0 25
13
No of
awareness
programs for
public
conducted
Nos 235 200 9 47 491
14
No of training
programs to
field staff
conducted
Nos 154 157 14 403 728
15
No of other
preventive
maintenance
works like tree
cutting,
restringing of
wires,
providing
proper fuses,
replacement
of Lead wires,
Providing
Proper earthing
etc., is carried
out
Nos 3,720 3,083 448 12,572 19,823
cci
Vigilance Activities
In CESC, level-wise inspection drives are being carried out to check
theft of energy and misuse of energy. The progress achieved during
FY16 and FY17(as on October 16) are as given below:
SL. NO PARTICULARS FY16 FY17
(SEP’16)
1 Installations inspected in Nos 56,416 19,754
2 Discrepancies detected in Nos 4,020 3,534
3 No of cognizable cases booked 863 392
4 Non cognizable cases booked 3,157 3,142
5 Penalty levied in Rs. lakh 1,170.42 868.96
6 Penalty collected in Rs. lakh 992.48 564.1
Jana Samparka Sabhas
Jana Samparka sabhas are being frequently conducted at all sub-
divisional levels to get firsthand information and solve the grievances
of the consumers. Wide publicity is given and senior officers attend
these Jana Samparka Sabhas. The details of Janasamparka Sabhas
conducted from April to September 2016 as well as for the period
April to March16 are furnished below:
NAME OF
THE
CIRCLE
APR’ 16 MAY’ 16 JUN’ 16 JUL’ 16 AUG’ 16 SEP’ 16 TOTAL
O&M,
Mysuru 3 0 3 0 2 0 8
CH Nagar-
Kodagu 0 1 0 1 0 1 3
Mandya
Circle 6 2 3 2 1 2 16
Hassan
Circle 1 0 0 1 0 6 8
CESC Total 10 3 6 4 3 9 35
Details of Janasamparka Sabha from April 2015 to March 2016
NAME
OF THE
CIRCLE
AP
R’1
5
MAY’
15
JU
N’1
5
JUL’15 AUG
’15
SEP’
15
OCT’
15
NO
V’1
5
DE
C’1
5
JA
N’1
6
FEB
’16
MA
R’1
6
TOT
AL
O&M,
Mysuru 5 6 7 7 5 2 7 3 1 4 4 3 54
Ch
nagar-
Kodagu
0 1 0 0 0 2 1 2 0 0 0 0 6
Mandy
a 1 0 1 3 2 2 1 0 1 2 0 1 14
Hassan 16 0 13 0 6 0 0 5 5 0 0 10 55
CESC
Total 22 7 21 10 13 6 9 10 7 6 4 14 129
ccii
Commission’s Views:
The Commission notes that the CESC has taken up various remedial
measures including rectification of number of hazardous installations
and also carried out improvements to its distribution network.
However, despite these measures taken by the CESC, the number of
fatal electrical accidents involving both human and livestock has
increased, which is a matter of serious concern. The Commission
would like to impress upon the CESC that the identification and
rectification of hazardous installations is a continuous process, which
should be regularly carried out without any let up, with a focused
attention, this matter deserves. Therefore, the CESC should make
more concerted efforts continuous identification and rectification of
all the hazardous installations including streetlight installations / other
electrical works under the control of local bodies to prevent
electrical accidents. In addition, it is also important that the CESC
takes up awareness campaigns through visual/print media
continuously to spread safety aspects among public.
During the ESCOMs’ Review meetings held, the Commission has
been emphasizing that the ESCOMs should take up periodical
preventive maintenance works, install LT protection to distribution
transformers, conduct regular awareness programme for public on
electrical safety aspects in use of electricity and also ensure use of
safety tools & tackles by the field staff besides imparting necessary
training to the field staff at regular intervals.
Further, the Commission is of the view that the hazardous installations
in the distribution network is the result of works carried out shabbily
without adhering to the best construction practices as per the
standards, while taking up construction/expansion of the distribution
network. Therefore, the CESC shall take adequate and effective
steps to ensure that distribution network is hazardous free. In addition
to this, the CESC also needs to conduct regular safety audit of its
cciii
distribution system and to carryout preventive maintenance works as
per schedule in order to keep the network equipment in healthy
condition.
The Commission has already forwarded the Safety Technical Manual
to the ESCOMs, which enumerates detailed account of the steps to
be taken on each element of the distribution system which would
help the engineers in the field to identify and attend to the defects.
In this context, it is necessary that the ESCOMs continuously monitor
the implementation of the suggestions / recommendations
contained in the Safety Technical Manual to ensure that distribution
network is maintained properly.
The Commission, therefore, reiterates its directive that the CESC shall
continue to take adequate measures to identify & rectify all the
hazardous locations/installations existing in its distribution system,
duly prescribing an action plan to prevent and reduce the number of
electrical accidents occurring in its distribution system. The
compliance thereon shall be submitted to the Commission every
month, regularly.
cciv
APPENDIX - 1
Statement showing the objections of the stakeholders/public, CESC’s response
and the Commission’s Views.
Objections on Tariff Issues:
Objections Replies by CESC
1. CESC, in its ERC and Tariff
application for FY18, has not
provided details of Consumption
of LT-4c(i) and (ii) categories for
FY16-17. Though there are no
separate feeders for the service of
the above categories the
consideration of 3 year CAGR of
3.19% for projection of sales growth
for FY18 does not significantly
contribute to increase in revenue.
Subjecting a category of
consumers, to a discriminatory
increase of 53% in tariff from the
existing Rs.2.80 per unit to the
proposed Rs.4.28 per unit, is
therefore not proper.
CESC, in its ERC and Tariff filing for FY18,
has furnished the actual consumption
in respect of LT4c category for FY 17 for
the period April, 2016 to September,
2016. Any increase in sales will
contribute to an increase in the
revenue.
As there is a total gap of Rs.962.93
crores for FY18, a tariff hike of Rs.1.48
per unit across all categories has been
proposed.
Commission's Views: The reply furnished by CESC is noted. The Commission has
dealt with the tariff issue in the appropriate chapter of this Tariff Order.
2. CESC should have indicated steps
taken for the improvement of
efficiency and the efficiency gains
thereon.
CESC has made efforts for the
improvement of the system. The
Distribution loss has reduced from
15.07% during FY13 to 14.73% during
FY14, to 13.88% during FY-15. The
distribution loss was reduced to 13.60%
during FY16 as against to the
approved loss of 14.50%.
Commission's Views: The reply furnished by the CESC is noted. Nevertheless, the
Commission directs CESC to tackle high loss making lengthy feeders and take
appropriate action to suitably improve the distribution system in order to
reduce the losses further.
3. As per the tariff policy, the cross
subsidy should be brought within
+/-20% of the cost of supply.
Hence, the tariff determination
should be based on the cost of
supply. The IP Sets are subsidized
by the other category of
consumers, mainly the Industrial
sector. Hence, cross subsidy
payable by industrial consumers
should be reduced.
At least the cost to serve of HT2(a)
The details have been furnished in
formats D-23 a, b and c in the
application for ERC and Revision of
Tariff for FY-18.
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category should be worked out
based on voltage-wise supply and
the cost per unit is to be reduced.
Commission's Views: The cross subsidy level based on the Cost to serve is being
indicated in the Tariff Orders issued by the Commission. The cross subsidy levels
based on the Average Cost of supply is also being shown in the Annexure to
the Tariff Orders.
4. CESC has totally failed to improve
the efficiency of its operations by
implementing the directives issued
by the Commission. The power
supply situation and quality of
power supply in rural areas have
deteriorated further during the
current year. The compliance of
directives is also very poor and no
tangible results have come out, so
far. On these aspects, the ERC and
Tariff filings are defective and
liable to be dismissed as not
maintainable.
The directives of the Commission are
being complied with. The details have
been furnished in pages 8 to 45 in the
application for APR for FY-16.
The power supply arrangement during
FY17 upto October 2016 is detailed in
page 33 of the application for ERC
and Revision of Tariff for FY-18. Also, the
CESC is ensuring that power supply is
being arranged as per the directions of
GoK.
Commission's Views: The reply furnished by the CESC is noted. The Commission
is reviewing the compliance to its directives in the KPTCL and ESCOMS review
meetings and directing the ESCOMs’ to strictly adhere to the same.
5. Due to non-release of subsidy in
advance by the Government, the
ESCOMs are paying interest on the
dues. The interest so paid, should
not be passed on to the
consumers.
The subsidy bills are submitted to GOK
on regular basis for which GOK
releases the subsidy on a monthly
basis. The details of subsidy demanded
and released is already submitted in
Page No. 51 & 52 of APR filing.
Commission's Views: The reply furnished by CESC is noted and the issue of
subsidy is dealt in the relevant chapter of this Order.
6. The Fixed charges are to be based
on the assets created for each
type of consumers, but, CESC has
not furnished the details except
seeking increase in Fixed charges
just to increase its revenue. This
should not be allowed.
The hike in fixed charges is
necessitated due to a gap in the
actual fixed charges against the
proposed cost to be incurred in
respect of Employees, A&G and R&M
costs. The details have been furnished
in page 105 of the application for ERC
and Tariff Revision for FY-18.
Commission's Views: The Commission has dealt with this matter in the
appropriate chapter of the Tariff Order.
7. The Proposal of CESC to reduce
the period of Banking to 3 months
is not to be allowed as it is not
practicable.
It has not made such request in the
ERC and Tariff revision for FY18.
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Commission's Views: The proposal of ESCOMS on this issue will be dealt in a
separate proceeding as ESCOMs have filed a separate petition in the matter.
8. The Vigilance officers are booking
cases by treating some of the
Industrial establishments as
commercial entities, though they
are not competent to book cases
under section 126 of the Electricity
Act 2003. The competent officer
as per the Act is assessing officer
(AEE Ele of the subdivision). Such
acts of the Vigilance Officers
needs to be stopped.
With regard to be vigilance activities,
the CESC is following the Government
notification No. DE87PSR2003/28
dated.05-01-2004.
Commission's Views: The CESC is directed to strictly adhere to the provisions of
the Electricity Act, 2003 and the relevant Regulations there under.
9. CESC is not properly utilizing Rs.1
Crore allowed for consumer
education. It would be better to
educate the industrial and
commercial consumers about the
provisions of the Act and KERC
Regulations.
Apart from the advertisements and
publication of handbooks, CESC is also
creating consumer education and
awareness by conducting
“Janasamparkha Sabha” at the
subdivision level on a regular basis.
Further, the CESC would take up the
education of Industrial and commercial
units as suggested.
Commission's Views: The reply furnished by the CESC is acceptable.
10. CESC is not conducting energy
audit and segregating the
technical and commercial losses.
The distribution losses declared
without proper energy audit is
doubtful. The CESC has not given
the number of IP sets based on
the enumeration.
The computation of distribution losses at
11kV feeder level and DTCs has already
been initiated as per the directions of
the Commission. This enables
determination of technical losses.
Further, energy auditing at DTC levels
as directed by the Commission enables
computation of DTC loss levels which
includes both technical and
commercial losses.
After full implementation of the above,
the segregation of technical and
commercial losses in the distribution
system is possible.
The status of enumeration of IP sets has
been furnished in pages 44 and 45 of
the application for APR for FY16.
Enumeration of IP Sets is under progress
in CESC. 80% of the work has been
completed by the end of January, 2017
and probably work will be completed
by the end of March, 2017. The R.R. No
tagging work is also in progress for the
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regularized IP sets. After completion of
tagging work, total no of un-authorized
IP sets will be arrived and action will be
taken.
Commission's Views: The reply furnished by the CESC is noted. However, the
Commission emphasises that, conducting energy audit is the only way for
plugging the leakage and to make the company viable both technically and
financially.
11. CESC has indicated a huge
capex of Rs.889 Crores for FY18,
whereas, the actual capex
incurred during FY16 is at Rs.488.52
Crores and the actual capex
during FY17 up to September,
2016 is Rs.111.53 Cores. This
proposal of huge capex will have
tariff implications and should not
be allowed.
The Capex for FY 16 is Rs.488.52 Crores
(actuals) Cumulative progress of Capex
for FY17 up to Dec. 2016 is Rs.235.68
Crores. The Capex approved by the
Commission for FY17 is Rs.562 Crores.
The Capital investment of Rs.889 Crores
has been proposed for FY18 towards
achievement of the objectives of the
proposed Schemes under Capex as
indicated in the ERC filing for FY18.
All the works will not be completed by
FY18. There will be spillover of works to
an extent of 30 to 35% for FY19.
Commission's Views: The reply furnished by the CESC is noted. The Commission
has dealt with this matter appropriately, in the relevant chapter of this Tariff
Order.
12. Unplanned power purchase by
CESC has resulted in payment of
huge cost to the IPPs.
Power purchase agreements (PPA) for
energy purchases from all IPPs are
approved and the tariff for energy from
IPPs is determined by KERC.
Commission's Views: The reply furnished by the CESC is noted and the issue of
power purchase is dealt in the relevant chapter of this Tariff Order.
13. The Sundry Debtors are mainly the
Govt. entities. The Government
being the owner of ESCOMs has
not been reimbursing the dues of
ESCOMs in time.
The CESC has furnished the details of
the receivables from the Government
entities as on 31-12-2016 as follows:
Amount in
Rs.Crores
1 Urban local bodies: 59
2 Rural Local Bodies: 611.64
3 Lift Irrigation : 12.8
4 Tariff Subsidy
(IP,BJ/KJ) :
371.78
Others : 1.28
Total = 1056.50
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Commission's Views: Though the CESC has furnished the details of the
receivables, it should have furnished the details of the action taken to recover
the same. The Commission directs CESC to follow up the matter with the
respective departments and recover the receivables.
14. The second highest cost incurred
by CESC is the employee cost
projected at Rs.741Crs for the year
FY-2018 which has jumped by
106% over the employee cost of
FY-2016. CESC has not done
proper manpower planning.
The employee cost has been
calculated and projected as per the
norms fixed by KERC for O&M
expenses.
A revision in the pay scales for
ESCOMs/ KPTCL employees is due from
01.04.2017. An additional liability on
account of pay revision and P&G
contribution is included in the
employee cost in form D6.
The break up is as follows:
1. Additional liability on account of
pay revision – Rs.42.75 Crores.
2. P&G contribution liability-Rs.282.63
Crores.
All the details have been furnished in
Format D-6 of the application for ERC
and tariff revision for FY-18.
Commission's Views: The reply furnished by CESC is noted and the Commission
has dealt with the matter appropriately in the relevant chapters of this Tariff
Order.
15. There is no consistency in the solar
policy framed by the Government
of Karnataka and ESCOMs. The
policy has seen several
unpredictable changes to the
disadvantage of consumers. This
aspect needs consideration of the
Commission.
It will abide by the Orders of GoK and
the Commission.
Commission's Views: The concern raised is noted.
16. Flat increase in tariff by Rs.1.48 has
no justification that too within a
span of a year.
CESC has sought a tariff hike of Rs.1.48
per unit in respect of all categories of
consumers to bridge the shortfall in ARR
during FY18.
Commission's Views: The reply by CESC is noted and the Commission has dealt
with the matter suitably in the relevant chapter of the Tariff Order.
17. CESC has stated that the Gap for
FY18 is Rs.962.93 crores (page-105)
and requested the Commission to
hike the tariff by 148 paise per unit
for all categories of consumers. In
the truing up of FY16 it is
mentioned that the total annual
revenue gap for FY16 is Rs.456.54
crores and this will be recovered in
The KERC, in its Tariff Order 2016 dated
30th March 2016, has recognized
Rs.120.41 Crores as regulatory asset. In
this back ground and also based on
the previous truing up orders, the
Company has accounted the
regulatory asset as follows:
ccix
FY18. This should not be done. Gap
of Rs.456.54 crores (page-105) for
FY16 due to Truing up is not proper.
Any expenditure over and above
the approved limit has to be
absorbed by the Government and
should not be passed on to the
consumers.
The Regulatory Asset of Rs.120.41
Crores as allowed by the Commission
in its Tariff Order-2016 dated 30th
March, 2016. The additional
Regulatory asset to the extent of
Rs.344.05 Crores (The difference of
Approved - Actual Power Purchase
cost) are accounted by Computing
the provisional gap expected to be
considered by KERC for inclusion in the
tariff revision of future years. The total
annual revenue gap for FY16 of
Rs.456.54 crores to be recovered in
FY18 is on account of Regulatory
Assets.
Commission's Views: The Commission takes note of the reply by the CESC. The
Commission has dealt with the matter suitably in the relevant chapters of this
Tariff Order.
18. CESC has not indicated the
benefits of implementing ToD and
has not stated whether the peak
load has come down due to ToD.
Further, if the peak load is not
reduced, then ToD should be
made as optional.
The detailed analysis after
implementation of TOD is under
process. CESC will abide by the orders
of the Commission.
Commission's Views: The Commission has dealt with this issue appropriately in
the relevant chapters of the Tariff Order.
19. Introducing the morning peak
price would hamper the industries
and hence not to be allowed.
CESC has not made any request for
the morning peak price in its
application for ERC and Tariff revision
for FY18.
Commission's Views: The Commission has dealt with this issue appropriately in
the relevant chapters of the Tariff Order.
20. CESC should regularize all un-
authorized IP sets to bring down
the distribution loss and to claim
realistic subsidy from the
government.
Enumeration of IP Sets is under progress
in CESC. 80% of the work has been
completed by the end of January,
2017 and will be completed probably
by the end of March-2017. R.R.No.
tagging work is also in progress for the
regularized IP sets. After completion of
tagging work, total No. of un-
authorized IP sets will be arrived and
action will be taken as per law.
As on 30-09-2016, there are 372
exclusive agriculture feeders in CESC
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CESC has not mentioned the
number of DTCs feeding to IP sets.
The IP Set consumption is still being
calculated based on sample
metering only.
jurisdiction in which 37028 DTCs are
feeding the IP Sets. This information has
been furnished in Page 25 of the
application for APR for FY16. Further, as
per the orders of the Commission, the
consumption of IP sets is calculated
based on the agriculture feeder
consumption.
Commission's Views: The Commission takes note of the reply by CESC. The
Commission directs CESC to complete the enumeration and tagging of the IP
Sets and consider the meter reading of the segregated feeders of IP Sets for
arriving at the IP Set consumption.
21. CESC has not implemented HVDS,
which will bring down the losses. It
has stated that, implementation of
NJY does not necessitate the
HVDS, but, HVDS and NJY are
totally different and HVDS will
reduce the losses by 8 to 10%.
The details have been furnished in
pages 28 and 29 of the application for
APR for FY16. CESC is of the view that
HVDS is not required in its area as the
coverage of NJY under phase-1 and
phase-2 is massive (No. of feeders
added-306, Nos. of transformer added-
9495.) and also in view of providing of
one DTC for each GK/WS installations
and one DTC for every three UNIP
installations.
Commission's Views: The reply furnished by the CESC is noted. However, the
Commission directs the CESC to explore the possibility of reducing the length of
LT lines in IP Set feeders, through implementation of HVDS.
22. The DSM in agriculture is not
completed by CESC, even though
it was proposed in 2013.
CESC has furnished the list of one lakh
inefficient IP sets in the prescribed
format to M/s EESL, New Delhi as per
the directions of Energy Department,
Government of Karnataka for
replacement of pumps under
Agriculture DSM program, wherein
1753 Nos. of pump sets of Varuna and
T. Narasipura were also included in the
list. The approval from the GoK is
awaited.
Commission's Views: The reply furnished by CESC is noted. CESC should speed
up the programme.
23. Although, the Commission had
directed CESC to complete
metering of DTCs by 2010, the
progress was only 29.15% in five
years. Further, CESC has not
conducted energy audit in the
DTCs which have been metered.
The details of metering of DTCs and
energy audit of DTCs have been
furnished in pages 25 and 26 in the
application for APR for FY16 filed
before the Commission. As on 30-09-
2016, 27289 nos. of DTCs are yet to be
metered. Providing meters to DTCs
coming under Agricultural feeders
ccxi
have been exempted by Commission
in the review meeting held on
19.10.2013. Energy audit is being
conducted on town feeders as well as
metered DTCs. The details are furnished
in pages 26 and 27 of the application
for APR for FY16. The additional
information has also been furnished on
page 48 of the replies to the
preliminary observations of the
Commission.
Commission's Views: The reply given by CESC is noted. The Commission directs
CESC to complete DTC metering and conduct energy audit within a definite
timeframe.
24. The cross subsidy surcharge
proposed by the ESCOMs is higher
than the previous year and is
against the principles set out by the
Commission.
Cross subsidy surcharge has been
determined by limiting to 20% of the
tariff applicable to the particular
category of consumers as per Tariff
Policy issued by GOI on 28.01.2016.
Commission's Views: The Commission takes note of the reply by CESC and has
dealt with the matter appropriately in the relevant chapter of this Tariff Order.
25. The Open Access Consumers are
already paying demand charges
(fixed charges) as per their
contract demand. As demand
charges are already inbuilt while
calculating T as revenue realization
from the particular category of
consumers, demand charges
ought to be deducted from T while
calculating CSS to avoid double
charging of demand charges.
The calculation of CSS is done on the
same manner as in previous years.
Commission's Views: The Commission has already issued Orders in the matter in
RP4/2016 and the decision is binding.
26. The Wheeling Charges proposed
by the ESCOMs have been
increased to the tune of 39%
(BESCOM), 95% (CESC),
94%(GESCOM), 106% (HESCOM)
and 54% (MESCOM) for FY 18
compared to FY17 which is
consequent to increase of
Distribution ARR to the tune of
Rs.2500 Crores.
The Commission should do
prudence check of these
allocations which are not in line
with the principle set out by the
The Methodology for calculation of
segregation of ARR into distribution
and supply business in FY18 adopted
by CESC is the same as was
adopted in FY16. For FY18 the
increase in the ARR is mainly due to
the increase in employee cost.
Employee cost has been calculated
and projected as per the norms
fixed by the KERC for calculation of
O&M expenses.
ccxii
Commission in its earlier tariff
orders.
Commission's Views: The Commission takes note of the reply by CESC and has
dealt with this matter appropriately in the relevant chapter of this Tariff Order.
27. The calculation of Wheeling
charges proposed by ESCOMs
seems to be erroneous, as the
quantum of energy considered for
calculation is only the quantum of
Sales by ESCOM to the consumers
excluding quantum of Open
Access.
For calculation of wheeling
charges, total energy to be
wheeled in the ESCOM system
(Discom sale+ Open Access Sale)
should be considered.
The quantum of Open Access
energy and wheeled energy is very
less compared to quantum of Sales
by CESC and also the open access
and wheeled energy cannot be
projected in advance as CESC will
not be having advance information
in respect of the same.
Commission's Views: The reply furnished by CESC is noted.
28. ESCOMs must buy power from
Exchange/Short term markets when
prices are lower than energy
charge of generators tied up in long
term PPAs. At such low prices there
is huge potential to replace costlier
power. ESCOMs may continue to
pay fixed charges irrespective of
their schedule from generator and
replace costlier power with power
purchased through IEX to ensure
most efficient merit order dispatch.
The power purchased from long
term thermal generators are
reliable and is assured power. The
payment has to be made before
hand to buy the power from IEX,
whereas ESCOMs get a credit
period of about 30 days from the
date of presentation of bill in
respect of other generators.
Despatch Scheduling will be
done as per grid code. Open
access energy cannot be
considered for RPO fulfillment as
the source of energy will not be
known as in the case of other
sources of power and short term
power.
Commission's Views: The reply furnished by CESC is noted.
29. Though the average cost of supply
is Rs.5.69 per unit, IP Sets are
charged at Rs.2.38 per unit and the
difference is charged to the other
consumers through cross subsidy.
As approved in Tariff Order, 2016, the
average cost of supply for FY17 is
Rs.5.67 per Unit and for the BJ/KJ
Consumer upto 18 units and IP sets
Consumers upto 10HP the rates are
claimed as per Commission
determined Tariff i.e for BJ/KJ upto 18
units is charged by Rs.5.67 per unit and
IP sets upto 10 HP, is charged by
ccxiii
Rs.4.88 per unit. The Subsidy bills are
submitted to GOK on regular basis for
which GOK releases the subsidy on
monthly basis.
The details of Subsidy demanded and
subsidy released has been submitted
in Page No. 51 & 52 of the APR filing.
Commission's Views: The reply furnished by CESC is noted and the above
issues are appropriately dealt in the relevant Chapters of this Tariff Order.
30. Interest on consumer deposits are
to be paid on a quarterly basis
and bills should indicate the
deposit amount.
For FY 15-16, it has paid 8.5% interest on
consumer security deposit to the
consumers and the interest is credited
to the consumers account in the 1st
quarter of FY16. CESC is following the
KERC (Interest on security deposit)
Regulations-2005, for payment of
interest.
Commission's Views: The reply furnished by CESC is noted.
Objections on the Quality of Service:
31. CESC is carrying out load shedding
without publishing it in advance
through newspaper and has also
not obtained approval of the
Commission. CESC should have
procured power from other
sources to meet the demand
instead of resorting to load
shedding.
The load shedding is being done only
as a last resort in the identified specific
stations and feeders when there is
shortage of availability of power and
to maintain grid discipline. Scheduled
interruptions are being brought to the
notice of the public by publishing the
same in newspapers.
Further, during October, 2016 and
November, 2016, CESC Mysore has
purchased power from IEX as there
was decreased generation at that
time.
Commission's Views: The reply furnished by CESC is noted.
32. CESC has not taken effective and
serious measures to reduce the
accidents. CESC has only narrated
the proposed action plan to
reduce accidents but the action
plan has not been implemented.
Only emergency works have been
carried out. CESC has not been
able to do periodical
maintenance. Live wires on the
road, open junction boxes and
short circuits in transformer wiring
are usual hazards.
The details in this regard were furnished
in pages 39 to 43 of the application for
APR for FY16. The safety standards are
being adhered to and the workmen
have been provided with safety
equipment and care is being taken to
ensure that the workmen use the safety
equipment while at work. The safety
training is also being imparted on a
regular basis. Disciplinary action is also
being initiated on the errant
workmen/officers.
Commission's Views: The Commission takes note of the reply by CESC. The
Commission directs CESC to take all precautionary measures and periodical
maintenance to reduce the accidents.
33. CESC has not taken serious The HT/Lt ratio which was 1:1.95 during
ccxiv
measures to achieve HT:LT ratio of
1:1. The present ratio of 1:1.68 has
resulted in high distribution loss.
FY-14 has been brought down to 1:1.76
during FY15 and to 1:1.68 during FY16.
After the implementation of IPDS and
DDUGVY schemes there will be a
further improvement in the HT/LT ratio.
Commission's Views: The reply furnished by CESC is noted.
34. The CESC has not furnished the
details of Reliability index to know
the quality of service it is rendering
to the consumers.
CESC is furnishing the details of
reliability index of feeders to the
Commission every month.
Commission's Views: The reply furnished by CESC is noted. The Commission is
hosting on its website the details of the Reliability Indices as and when
submitted by the ESCOMs.
35. CESC has not furnished the details
of failed distribution transformers
and the expenditure incurred in
repairing the failed Transformers.
CESC has stated that, the details of
failure of DTCs is furnished in Pages 66
to 70 in the application for APR for FY-
16.
Commission's Views: The reply furnished by CESC is acceptable.
36. CESC has not monitored the
implementation of the Standards
of Performance.
CESC has implemented the specified
Standards of Performance while
rendering services related to supply of
power as per the KERC (Licensee’s
Standards of Performance)
Regulations, 2004 and the CESC has
displayed prominently in Kannada the
details of various services such as
replacing of the failed transformers,
attending to fuse off call / line
breakdown complaints, arranging new
services, change of faulty energy
meters, reconnection of power supply,
etc., on the notice boards in all the O
& M sections and O & M subdivisions
for the information of consumers. The
details are available in pages 20 and
21 of the application for APR for FY16.
Commission's Views: The reply furnished by CESC is acceptable.
37. CESC should not collect meter
charges from consumers while
replacing the old Electro-
mechanical meter by new
Electronic meters.
CESC is not collecting any meter
charges while replacing the
Electromechanical meters by
Electronic meters.
Commission's Views: The reply furnished by CESC is noted. The Consumers may
bring to the notice of the CESC any cases of un-authorized collection of Meter
Deposits.
38. The Distribution transformer failures
are increasing due to poor
maintenance. The repair centres
are not using quality coils and not
filling the oil to the required level
The HT rating subdivisions are regularly
monitoring the quality of material as
well as works carried out in the repair
centres and the repaired transformers
are subjected to various tests before
ccxv
resulting in failure of the
transformers. CESC should take
necessary timely action to replace
the failed transformers.
deployment to the DTCs.
Commission's Views: The reply furnished by CESC is noted.
39. Though the farmers have paid the
charges for regularization of IP
Sets, the infrastructure is not
created even after lapse of two
years. This has resulted in frequent
failures of transformers and
interruptions to IP Sets.
As and when the farmers have paid
the amount, R.R. Nos, have been
allotted and the IP Sets are regularized.
Action is being taken to create
infrastructure to such IP Sets.
Commission's Views: The reply furnished by CESC is noted.
Specific Requests:
40. Only two categories in LT4
category should be made by
clubbing LT4(a) with LT4(c)(1) and
LT4(b) with LT4(c) (2) and the benefit
of free power extended to the
Coffee plantations on par with the
other agriculture activities.
The Commission in the Tariff Order 2016
has expressed that, “Coffee
plantations have been given a special
status as compared to other
agricultural lands and therefore coffee
planters cannot be treated on par with
other agriculturists. Further, extending
any subsidy to coffee plantations has
to be decided by the State
Government”.
Hence, the tariff matter has to be
decided by the Commission and CESC
will abide by it.
Commission's Views: The reply furnished by the CESC is acceptable. The
Commission reiterates is earlier decision on this issue.
41. CESC should indicate the tariff slab
rates in the bills issued to the
consumers and the quality of
paper and ink used to print the bill
should be improved.
CESC has published the tariff slab rates
in the newspapers and also in the
company’s website.
The quality of the paper and the print in
the bill has been improved since
September, 2016.
Commission's Views: The reply furnished by CESC is acceptable.
42. The awareness among the
consumers on the CGRF
mechanism should be improved
and the complaints should be
redressal within the time frame
stipulated.
The CGRFs are functional in all the five
Districts and attempts are being made
to create awareness among the
consumers regarding the redressal
mechanism.
Commission's Views: The reply by CESC is acceptable. However, the
Commission directs CESC to increase the awareness among the consumers, so
that, the consumers are benefitted from the functioning of CGRF.
43. Railways should be given
incentives for maintaining the
power factor (P.F) above, 0.9.
The Commission determines the tariff
for all categories of consumers. CESC
will abide by the orders of the
Commission.
Commission's Views: The maintenance of proper PF is in the interest of
consumer only. PF above the threshold levels would improve the voltage of the
ccxvi
supply to the consumers and also enables optimizing the power consumption.
44. Railway quarters should be
connected under bulk LT supply
with a rebate on bill against
maintenance & bill collection
charges or the quarters should be
connected directly on ESCOM
supply so that, billing and line
maintenance is the responsibility of
ESCOMs.
CESC is following the norms laid down
under Conditions of Supply and the
latest Tariff order of the Commission.
Commission's Views: The reply furnished by CESC is taken note of. The
Commission has dealt with the matter appropriately in the relevant chapter of
the Tariff Order.
45. The Railways a service utility and
an essential part of the transport
system, should have single part
tariff instead of two-part tariff and
a lower tariff than the prevailing
tariff.
The tariff for various categories of
consumers is determined by the
Commission. CESC will abide by the
orders of the Commission.
Commission's Views: The reply of CESC is noted.
46. Under HT2(b) major part of the
Energy purchased by the Railways
is consumed for providing of
passenger amenities like Platform
lighting, waiting halls, Approach
area, Water coolers, Water
pumping, Concourse etc, to bring
perceptible improvements in the
quality of services. Hence Railways
should be exempted from
proposed tariff hike.
CESC will abide by the orders of the
Commission.
Commission's Views: The activities in the station are considered as commercial
and non-domestic. Hence there cannot be any discrimination between the
consumers who are similarly placed.
47. The solar water heater rebate
should be increased from Rs.50 to
Rs.100 to encourage domestic
consumers installing solar heaters.
CESC has not given the details of
how man installations which are
yet to be serviced with solar water
heaters.
CESC will abide by the orders of GoK
and the Commission. All residential
buildings with built up area of 600 Sq ft
and above constructed on sites
measuring 1200 sq ft and above and
falling within the limits of Muncipalities
/Corporations are being serviced with
solar water heaters as per the GOK
order no EN87 NCE 2008/08-04-2008.
Commission's Views: The Commission has suitably dealt with the matter of solar
rebate in the relevant Chapter of this Tariff Order.
48. MSME sector should be
categorized under separate tariff
category and a tariff fixed at 25%
lower than small industries.
CESC will abide by the Orders of the
Commission.
ccxvii
Commission's Views: The retail tariff to the consumers is being fixed keeping in
view the recovery of average cost of supply and the cross subsidy levels with
reference to the average cost of supply. Fixing a tariff below the cost of supply
would entail meeting the balance cost either by Government subsidy or
through cross subsidization. In the absence of subsidy from the Government to
MSMEs, extending concessions to this category would result in increase in cross
subsidy levels of other categories of consumers, which is not permissible under
the Tariff Policy.
ccxviii
ESCOM's Total Approved Power Purchase For FY18
NAME OF THE GENERATING STATION
ENERGY
ALLOWED
(MU)
CAPACITY
CHARGES
(Rs Cr)
ENERGY
CHARGES
PER UNIT
RATE
(RS/Kwh)
ENERGY
CHARGES
(Rs Cr)
TOTAL COST
(Rs Cr)
PER UNIT
RATE
(RS/Kwh
)
KPCL THERMAL STATIONS
RAICHUR THERMAL POWER
STATION_RTPS 1-7 (7x210) 7850.68 792.92 3.34 2622.13 3415.05 4.35
RAICHUR THERMAL POWER
STATION_RTPS 8 (1x250) 1269.00 227.15 2.88 365.47 592.62 4.67
BELLARY THERMAL POWER
STATIONS_BTPS-1 (1x500) 2516.00 274.36 3.52 885.63 1159.99 4.61
BELLARY THERMAL POWER
STATIONS_BTPS-2 (1x500) 2516.00 470.49 3.06 769.90 1240.39 4.93
BELLARY THERMAL POWER
STATIONS_BTPS-3 (1x700) 960.00 0.00 2.87 275.52 275.52 2.87
YTPS (1x 800) 960.00 0.00 2.92 280.32 280.32 2.92
TOTAL KPCL THERMAL 16071.68 1764.92 3.23 5198.97 6963.89 4.33
CGS SOURCES
N.T.P.C-RSTP-I&II
(3X200MW+3X500MW) 3214.00 198.82 2.29 735.65 934.48 2.91
N.T.P.C-RSTP-III (1X500MW) 792.00 75.94 2.40 190.08 266.02 3.36
NTPC-Talcher (4X500MW) 2845.00 225.86 1.68 478.13 703.99 2.47
Simhadri Unit -1 &2 (2X500MW) 987.68 163.12 2.77 274.00 437.12 4.43
NTPC Tamilnadu Energy
Company Ltd (NTECL)_Vallur TPS
Stage I &2 &3 (3X500MW)
702.21 125.25 2.64 185.34 310.60 4.42
Neyveli Lignite Corporation_NLC
TPS-II STAGE I (3X210MW) 710.08 82.73 2.82 200.24 282.97 3.99
Neyveli Lignite Corporation_NLC
TPS-II STAGE 2 (4X210MW) 1126.00 135.83 2.82 317.53 453.36 4.03
Neyveli Lignite Corporation_NLC
TPS I EXP (2X210MW) 698.00 98.92 2.61 182.07 281.00 4.03
Neyveli Lignite Corporation_NLC
TPS2 EXP (2X250MW) 520.98 111.33 2.55 132.67 244.00 4.68
NLC TAMINADU POWER LIMITED
(NTPL) (TUTICORIN) (2X500MW) 1153.11 216.03 2.50 288.28 504.30 4.37
MAPS (2X220MW) 199.00 0.00 42.80 42.80 2.15
Kaiga Unit 1&2 (2X220MW) 920.00 0.00 293.10 293.10 3.19
Kaiga Unit 3 &4 (2X220MW) 912.00 0.00 290.55 290.55 3.19
NPCIL-KudanKulam Atomic
Power Generating Station
(KKNPP U1 (1X1000MW)
1511.00 0.00 623.16 623.16 4.12
NPCIL-KudanKulam Atomic
Power Generating Station
(KKNPP) U2(1X1000MW)
345.77 0.00 142.60 142.60
4.12
ccxix
NAME OF THE GENERATING STATION
ENERGY
ALLOWED
(MU)
CAPACITY
CHARGES
(Rs Cr)
ENERGY
CHARGES
PER UNIT
RATE
(RS/Kwh)
ENERGY
CHARGES
(Rs Cr)
TOTAL COST
(Rs Cr)
PER UNIT
RATE
(RS/Kwh
)
DVC-Unit-1 &2 Meja TPS
(2x500MW) 1402.48 208.22 2.38 333.59 541.82 3.86
DVC-Unit-7 & 8-KODERMA TPS
(2x500MW) 1753.58 321.82 2.19 383.48 705.30 4.02
Kudgi 750.04 0.00 3.02 226.51 226.51 3.02
TOTAL CGS Energy @ KPTCL
periphery 20542.92 1963.88 5319.80 7283.68 3.55
TOTAL MAJOR IPPS
UDUPI POWER CORPORATION
LIMITED_UPCL (2x600) 6712.00 1141.04 3.20 2147.84 3288.88 4.90
KPCL HYDEL STATIONS
SHARAVATHI VALLEY
PROJECT_SVP (10x103.5+2x27.5) 4914.10 21.27 0.35 173.40 194.67 0.40
MAHATMA GANDHI HYDRO
ELECTRIC POWER HOUSE_MGHE
(4x21.6+4x13.2)
279.58 2.32 0.45 12.60 14.92 0.53
GERUSOPPA_GPH (SHARAVATHI
TAIL RACE_STR) (4x60) 521.59 24.43 1.11 57.94 82.37 1.58
KALI VALLEY PROJECT_KVP
(2x50+6x150) 3172.76 21.36 0.55 174.31 195.67 0.62
VARAHI VALLEY PROJECT_VVP
(4x115+2x4.5) 1068.73 40.64 1.18 125.65 166.29 1.56
ALMATTI DAM POWER
HOUSE_ADPH (1x15+5x55) 481.63 31.50 0.97 46.73 78.23 1.62
BHADRA HYDRO ELECTRIC
POWER HOUSE_BHEP
((1x2+2x12)+(1x7.2+1x6))
60.65 1.50 3.36 20.39 21.89 3.61
KADRA POWER HOUSE_KPH
(3x50) 362.80 19.38 1.46 53.13 72.51 2.00
KODASALLI DAM POWER
HOUSE_KDPH (3x40) 340.17 12.01 1.14 38.86 50.87 1.50
GHATAPRABHA DAM POWER
HOUSE_GDPH (2x16) 82.75 2.18 1.68 13.92 16.10 1.95
SHIVASAMUDRAM (4x4+6x3) &
SHIMSHAPURA (2x8.6) HYDRO
STATIONS.
292.24 3.54 0.80 23.52 27.06 0.93
MUNIRABAD POWER HOUSE
(2x9+1x10) 91.46 0.43 0.58 5.32 5.75 0.63
TOTAL KPCL HYDRO 11668.46 180.56 0.64 745.77 926.33 0.79
OTHER HYDRO
PRIYADARSHINI JURALA HYDRO
ESLECTRIC STATION (6x39) 110.00 4.35 47.82 47.82 4.35
TUNGABHADRA DAM POWER
HOUSE_TBPH (4x9+4x9) 9.37 1.83 1.72 1.72 1.83
TOTAL OTHER HYDRO 119.37 4.15 49.54 49.54 4.15
RENEWABLE ENERGY SOURCES
WIND-IPPS 3704.87 1343.76 1343.76 3.63
KPCL-WIND (9x0.225+10x0.230) 7.80 2.89 2.89 3.71
MINI HYDEL-IPPS 1009.11 331.59 331.59 3.29
CO-GEN 160.01 74.30 74.30 4.64
NAME OF THE GENERATING STATION
ENERGY
ALLOWED
(MU)
CAPACITY
CHARGES
(Rs Cr)
ENERGY
CHARGES
PER UNIT
RATE
(RS/Kwh)
ENERGY
CHARGES
(Rs Cr)
TOTAL COST
(Rs Cr)
PER UNIT
RATE
(RS/Kwh
)
ccxx
CAPPTIVE 13.17 3.74 3.74 2.84
BIOMASS 119.71 59.23 59.23 4.95
SOLAR-existing (anticipated as
on 31.03.2017) 932.00 618.10 618.10 6.63
Solar-New Park 535.96 187.59 187.59 3.50
Solar-KREDL 672.16 353.29 353.29 5.26
SOLAR-KPCL
(YELESANDRA,ITNAL,YAPALDINNI,
SHIMSHA) (3x1+3x1+1x3x1x5)
10.61 6.37 6.37 6.00
TOTAL RE 7165.41 2980.86 2980.86 4.16
NTPC Bundled power 582.21 258.46 258.46 4.44
Power purchase from Co gen 1300.00 451.10 451.10 3.47
Short term power purchase 1120.00 467.04 467.04 4.17
Short term Purchase from
MSEDCL 294.00 106.43 106.43 3.62
TRANSMISSION CHARGES 0.00
PGCIL CHARGES 1066.00 1066.00
KPTCL CHARGES 2753.70 2753.70
SLDC 24.77 24.77
POSOCO CHARGES 3.48 3.48
TOTAL INCLUDING
TRANSMISSION & SLDC CHARGES 65576.04 8898.35 17725.80 26624.15 4.06
ccxxi
CESC’s Approved Power Purchase For FY18
NAME OF THE GENERATING STATION
% SHARE
OF
ENERGY
ALLOWED
ENERGY
ALLOWED
(MU)
CAPACITY
CHARGES
(Rs Cr)
ENERGY
CHARGES
PER UNIT
RATE
(RS/Kwh)
ENERGY
CHARGE
S
(Rs Cr)
TOTAL
COST
(Rs Cr)
PER
UNIT
RATE
(RS/Kw
h)
KPCL THERMAL STATIONS
RAICHUR THERMAL POWER STATION_RTPS 1-7
(7x210) 2.000 157.01 15.91 3.34 52.44 68.35 4.35
RAICHUR THERMAL POWER STATION_RTPS 8
(1x250) 10.632 134.92 24.15 2.88 38.86 63.01 4.67
BELLARY THERMAL POWER STATIONS_BTPS-1
(1x500) 10.632 267.50 29.16 3.52 94.16 123.32 4.61
BELLARY THERMAL POWER STATIONS_BTPS-2
(1x500) 10.632 267.50 50.02 3.06 81.86 131.88 4.93
BELLARY THERMAL POWER STATIONS_BTPS-3
(1x700) 10.632 102.07 0.00 2.87 29.29 29.29 2.87
YTPS (1x 800) 10.632 102.07 0.00 2.92 29.80 29.80 2.92
TOTAL KPCL THERMAL
1031.07 119.24 3.16 326.41 445.66 4.33
CGS SOURCES
N.T.P.C-RSTP-I&II (3X200MW+3X500MW) 10.632 341.71 21.14 2.29 78.21 99.35 2.91
N.T.P.C-RSTP-III (1X500MW) 10.632 84.21 8.07 2.40 20.21 28.28 3.36
NTPC-Talcher (4X500MW) 10.632 302.48 24.01 1.68 50.83 74.85 2.47
Simhadri Unit -1 &2 (2X500MW) 10.632 105.01 17.34 2.77 29.13 46.47 4.43
NTPC Tamilnadu Energy Company Ltd
(NTECL)_Vallur TPS Stage I &2 &3 (3X500MW) 10.632 74.66 13.32 2.64 19.71 33.02 4.42
Neyveli Lignite Corporation_NLC TPS-II STAGE I
(3X210MW) 10.632 75.50 8.80 2.82 21.29 30.09 3.99
Neyveli Lignite Corporation_NLC TPS-II STAGE
2 (4X210MW) 10.632 119.72 14.44 2.82 33.76 48.20 4.03
Neyveli Lignite Corporation_NLC TPS I EXP
(2X210MW) 10.632 74.21 10.52 2.61 19.36 29.88 4.03
Neyveli Lignite Corporation_NLC TPS2 EXP
(2X250MW) 10.632 55.39 11.84 2.55 14.11 25.94 4.68
NLC TAMINADU POWER LIMITED (NTPL)
(TUTICORIN) (2X500MW) 10.632 122.60 22.97 2.50 30.65 53.62 4.37
MAPS (2X220MW) 10.632 21.16 2.15 4.55 4.55 2.15
Kaiga Unit 1&2 (2X220MW) 10.632 97.81 3.19 31.16 31.16 3.19
Kaiga Unit 3 &4 (2X220MW) 10.632 96.96 3.19 30.89 30.89 3.19
NPCIL-KudanKulam Atomic Power
Generating Station (KKNPP U1 (1X1000MW) 10.632 160.65 4.12 66.25 66.25 4.12
NPCIL-KudanKulam Atomic Power
Generating Station (KKNPP) U2(1X1000MW) 10.632 36.76 4.12 15.16 15.16
4.12
NAME OF THE GENERATING STATION
% SHARE
OF
ENERGY
ALLOWED
ENERGY
ALLOWED
(MU)
CAPACITY
CHARGES
(Rs Cr)
ENERGY
CHARGES
PER UNIT
RATE
(RS/Kwh)
ENERGY
CHARGE
S
(Rs Cr)
TOTAL
COST
(Rs Cr)
PER
UNIT
RATE
(RS/Kw
h)
ccxxii
DVC-Unit-1 &2 Meja TPS (2x500MW) 10.632 149.11 22.14 2.38 35.47 57.61 3.86
DVC-Unit-7 & 8-KODERMA TPS (2x500MW) 10.632 186.44 34.22 2.19 40.77 74.99 4.02
Kudgi 10.632 79.74 0.00 3.02 24.08 24.08 3.02
TOTAL CGS Energy @ KPTCl periphery
2184.12 208.80 2.59 565.60 774.40 3.55
TOTAL MAJOR IPPS
UDUPI POWER CORPORATION LIMITED_UPCL
(2x600) 2.454 164.70 28.00 3.20 52.70 80.70 4.90
KPCL HYDEL STATIONS
SHARAVATHI VALLEY PROJECT_SVP
(10x103.5+2x27.5) 27.598 1356.18 5.87 0.35 47.85 53.72 0.40
MAHATMA GANDHI HYDRO ELECTRIC POWER
HOUSE_MGHE (4x21.6+4x13.2) 10.632 29.72 0.25 0.45 1.34 1.59 0.53
GERUSOPPA_GPH (SHARAVATHI TAIL
RACE_STR) (4x60) 10.632 55.46 2.60 1.11 6.16 8.76 1.58
KALI VALLEY PROJECT_KVP (2x50+6x150) 22.000 698.01 4.70 0.55 38.35 43.05 0.62
VARAHI VALLEY PROJECT_VVP (4x115+2x4.5) 10.632 113.63 4.32 1.18 13.36 17.68 1.56
ALMATTI DAM POWER HOUSE_ADPH
(1x15+5x55) 10.632 51.21 3.35 0.97 4.97 8.32 1.62
BHADRA HYDRO ELECTRIC POWER
HOUSE_BHEP ((1x2+2x12)+(1x7.2+1x6)) 10.632 6.45 0.16 3.36 2.17 2.33 3.61
KADRA POWER HOUSE_KPH (3x50) 10.632 38.57 2.06 1.46 5.65 7.71 2.00
KODASALLI DAM POWER HOUSE_KDPH (3x40) 10.632 36.17 1.28 1.14 4.13 5.41 1.50
GHATAPRABHA DAM POWER HOUSE_GDPH
(2x16) 10.632 8.80 0.23 1.68 1.48 1.71 1.95
SHIVASAMUDRAM (4x4+6x3) & SHIMSHAPURA
(2x8.6) HYDRO STATIONS. 10.632 31.07 0.38 0.80 2.50 2.88 0.93
MUNIRABAD POWER HOUSE (2x9+1x10) 10.632 9.72 0.05 0.58 0.57 0.61 0.63
TOTAL KPCL HYDRO
2434.98 25.23 0.53 128.52 153.76 0.63
OTHER HYDRO
PRIYADARSHINI JURALA HYDRO ESLECTRIC
STATION (6x39) 10.632 11.70 4.35 5.08 5.08 4.35
TUNGABHADRA DAM POWER HOUSE_TBPH
(4x9+4x9) 10.632 1.00 1.83 0.18 0.18 1.83
TOTAL OTHER HYDRO 10.632 12.69 4.15 5.27 5.27 4.15
RENEWABLE ENERGY SOURCES
WIND-IPPS 188.95 68.53 68.53 3.63
KPCL-WIND (9x0.225+10x0.230) 0.00 0.00 0.00 3.71
MINI HYDEL-IPPS 222.13 72.99 72.99 3.29
NAME OF THE GENERATING STATION
% SHARE
OF
ENERGY
ALLOWED
ENERGY
ALLOWED
(MU)
CAPACITY
CHARGES
(Rs Cr)
ENERGY
CHARGES
PER UNIT
RATE
(RS/Kwh)
ENERGY
CHARGE
S
(Rs Cr)
TOTAL
COST
(Rs Cr)
PER
UNIT
RATE
(RS/Kw
h)
CO-GEN 41.80 19.41 19.41 4.64
CAPPTIVE 0.00 0.00 0.00 2.84
BIOMASS 4.43 2.19 2.19 4.95
SOLAR-existing (anticipated as on 31.03.2017) 141.37 93.76 93.76 6.63
Solar-New Park 11.05 59.24 20.73 20.73 3.50
Solar-KREDL 103.24 54.26 54.26 5.26
ccxxiii
SOLAR-KPCL
(YELESANDRA,ITNAL,YAPALDINNI,SHIMSHA)
(3x1+3x1+1x3x1x5)
0.00 0.00 6.00
TOTAL RE 761.16 331.88 331.88
NTPC Bundled power 11.57 67.39 29.92 29.92 4.44
Power purchase from Co gen 11.05 143.69 49.86 49.86 3.47
Short term power purchase 12.50 140.00 58.38 58.38 4.17
Short term Purchase from MSEDCL 11.05 32.50 11.76 11.76 3.62
TRANSMISSION CHARGES
PGCIL CHARGES 109.79 109.79
KPTCL CHARGES 301.47 301.47
SLDC 3.14 3.14
POSOCO CHARGES 0.38 0.38
TOTAL INCLUDING TRANSMISSION & SLDC
CHARGES 6972.30 796.06 1560.31 2356.37 3.38
ccxxiv
Sales-M U Revenue
Rs. crores
Sales-M U Revenue
Rs. crores
1
LT-1[fully
subsidised by
GoK]*
Bhagya Jyothi/Kutir Jyothi
118.52 72.3 106.17 65.61 6.18 0.00 -2.98
2
LT-2(a)(i) Dom. / AEH - Applicable to City
Municipal Corporations areas and all
area under Urban Local Bodies. 694.19 452.52 691.47 371.94 5.38 -12.96 -15.56
3LT-2(a)(ii) Dom. / AEH - Applicable to areas
under Village Panchayats 376.45 209.65 339.34 156.29 4.61 -25.47 -27.70
4
LT-2(b)(i) Pvt. Educational Institutions
Applicable to all areas of Local
Bodies including City Corporations 6.60 6.09 6.42 4.89 7.62 23.28 19.60
5
LT-2(b)(ii) Pvt. Educational Institutions
Applicable to areas under Village
Panchayats 3.30 2.80 3.31 2.25 6.80 10.19 6.90
6
LT-3(i) Commercial - Applicable in areas
under all ULBs including City
Corporations. 229.35 235.99 221.62 205.59 9.28 50.11 45.63
7LT-3(ii) Commercial - Applicable to areas
under Village Panchayats 81.46 78.00 75.38 64.63 8.57 38.74 34.60
8 LT-4(a)* IP<=10HP 2968.65 1,897.20 2386.77 1279.31 5.36 -13.27 -15.86
9 LT-4(b) IP>10HP 0.80 0.49 0.80 0.42 5.25 -15.10 -17.63
10
LT-4 (c) (i) Pvt. Nurseries, Coffee & Tea
Plantations of sanctioned load of 10
HP & below 8.80 4.51 8.90 4.76 5.35 -13.41 -15.99
11
LT-4 (c) (ii) Pvt. Nurseries, Coffee & Tea
Plantations of sanctioned load of
above 10 HP 6.04 4.51 5.94 4.05 6.82 10.43 7.14
12 LT-5(a) LT Industrial 51.21 43.14 81.27 59.38 7.31 18.22 14.70
13 LT-5(b) LT Industrial 96.02 79.06 62.50 45.66 7.31 18.22 14.69
14 LT-6(a) Water supply 216.56 130.99 216.57 106.44 4.91 -20.47 -22.84
15 LT-6(b) Public lighting 111.53 88.48 111.53 78.35 7.03 13.68 10.29
16 LT-7(a) Temporary supply 15.75 27.17 15.75 26.46 16.80 171.80 163.69
17LT-7(b) Permanent Supply to Adversiting &
Holding 0.07 0.11 0.07 0.10 14.29 141.00 133.81
4985.30 3333.01 4333.81 2476.15 5.71 -7.55 -10.30
1 HT-1 Water supply & sew erage 466.79 297.74 463.65 240.50 5.19 -16.07 -10.26 -5.52
2 HT-2(a) Industrial - 776.96 654.15 776.95 593.94 7.64 23.70 32.26 39.24
3 HT-2(b) Commercial 132.01 140.73 126.28 121.41 9.61 55.57 66.34 75.12
4 HT-2 ( c) (i)
Govt./ Aided Hospitals & Educational
Institutions 40.54 35.46 37.68 29.58 7.85 27.01 35.79 42.97
5 HT-2 ( c) (ii)
Hospitals and Educational
Institutions other than covered
under HT-2( c) (i) 24.73 21.50 27.59 22.76 8.25 33.51 42.75 50.29
6
HT-3(a)(i) Lift Irrigation - Applicable to lif t
irrigation schemes under Govt Dept,
/ Govt. ow ned Corporations 70.58 34.64 84.31 18.97 2.25 63.59 -61.07 -59.02
7
HT-3(a)(ii) Lift Irrigation - Applicable to Private
lif t irrigation schemes Lift Irrigaton
societies on urban/express feeders 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
8HT-3(a)(iii) LI schemes other than those
covered under HT 3(a)(ii) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
9
HT - 3b Irrigation & Agriculture Farms,Govt.
Horticultural Farms, Pvt.Horticulture
Nurseries, Coffee, Tea,Cocanut &
Arecanut Plantations 0.27 0.15 0.20 0.09 4.50 -31.23 -26.47 -22.59
10 HT-4 Residential Apartments -Colonies 3.96 3.05 5.93 3.87 6.53 5.50 12.80 18.76
11 HT-5 Temporary supply 5.08 8.96 5.08 8.34 16.42 165.66 184.05 199.05
1520.92 1196.38 1527.67 1039.46 6.80 10.10 17.72 23.94
6506.22 4529.39 5861.48 3515.61 6.00
119.05 105.97
6506.22 4648.42 5861.48 3621.58 6.18 0.00
* These categories are subsidised by GoK. In case subsidy is not released by the Gok in advance, CESC
shall raise demand & collect CDT of Rs.6.18/unit by BJ/KJ &Rs.5.36/unit from IP set Consumers.
* Voltage w ise cost of supply per unit to: LT Rs: 6.37, HT Rs.5.78 & EHT- Rs.5.49 Page - 216
Cross
Subsidy in
w ith ref.
toVoltage
wise COS
% (EHT)
PROPOSED AND APPROVED REVENUE AND REALISATION AND LEVEL OF CROSS SUBSIDY FOR FY-18 OF CESC
Annexure- III
Grand Total
Level o f
C ro ss
Subsidy with
ref .to
A verage
co st o f
supply in %
HT - TOTAL
TOTAL
Proposed by CESC
LT - TOTAL
Average
Realisation
in Rs. Per
Kwh
Cross
Subsidy
with ref.
to ACS %
(LT/HT)
Misc. Revenue
Sl No Category Description
Approved as per RST
ccxxv
ANNEX - IV
ELECTRICITY TARIFF - 2018
K.E.R.C. ORDER DATED: 11th April, 2017
Effective for the Electricity consumed from the first meter
reading date falling on or after 01.04.2017
Chamundeshwari
Electricity Supply Corporation Ltd.,
ccxxvi
ELECTRICITY TARIFF-2018
GENERAL TERMS AND CONDITIONS OF TARIFF:
(APPLICABLE TO BOTH HT AND LT)
1. Supply of power is subject to execution of agreement by the
Consumer in the prescribed form, payment of prescribed deposits
and compliance of terms and conditions as stipulated in the
Conditions of Supply of Electricity of the Distribution Licensees in
the State of Karnataka and Regulations issued under the Electricity
Act, 2003 at the time of supply and continuation of power supply
is subject to compliance of the said Conditions of Supply /
Regulations as amended from time to time.
2. The tariffs are applicable to only single point of supply unless
otherwise approved by the Licensee.
3. The Licensee does not bind himself to energize any installation,
unless the Consumer guarantees the minimum charges. The
minimum charge is the power supply charges in accordance with
the tariff in force from time to time. This shall be payable by the
Consumer until power supply agreement is terminated,
irrespective of the installation being in service or under
disconnection.
4. The tariffs in the schedule are applicable to power supply within
the area of operation of the licensee.
5. The tariffs are subject to levy of Tax and Surcharges thereon as
may be decided by the State Government from time to time.
6. For the purpose of these tariffs, the following conversion table would be
used:
1 HP=0.746 KW. 1HP=0.878 KVA.
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7. The bill amount will be rounded off to the nearest Rupee, i.e., the bill
amount of 50 Paise and above will be rounded off to the next higher
Rupee and the amount less than 50 Paise will be ignored.
8. Use of power for temporary illumination in the premises already having
permanent power supply for marriages, exhibitions in hotels, sales
promotions etc., is limited to sanctioned load at the applicable
permanent power supply tariff rates. Temporary tariff rates will be
applicable in case the load exceeds sanctioned load as per the
Conditions of Supply of Electricity of the Distribution Licensees in the
State of Karnataka.
9. No LT power supply will be given where the requisitioned load is 50
KW/67 HP and above. This condition does not apply for installations
serviced under clause 3.1.1 of K.E.R.C. (Recovery of Expenditure for
supply of Electricity) Regulations, 2004 and its amendments from time to
time. The applicant is however at liberty to avail HT supply for lesser
loads. The minimum contract demand for HT supply shall be 25 KVA or
as amended from time to time by the Licensee with the approval of
KERC.
10. The Consumer shall not resell electricity purchased from the Licensee to
a third party except -
(a) Where the Consumer holds a sanction or a tariff provision for
distribution and sale of energy,
(b) Under special contract permitting the Consumer for resale of
energy in accordance with the provisions of the contract.
11. Non-receipt of the bill by the Consumer is not a valid reason for non-
payment. The Consumer shall notify the office of issue of the bill, if the
same is not received within 7 days from the meter reading date.
Otherwise, it will be deemed that the bills have reached the Consumer
in due time.
12. The Licensee will levy the following charges for non-realization of each
Cheque
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1 Cheque amount upto
Rs. 10,000/-
5% of the amount subject to a
minimum of Rs100/-
2 Cheque amount of
Rs. 10,001/- and upto
Rs. 1,00,000/-
3% of the amount subject to a
minimum of Rs500/-
3 Cheque amount above
Rs. 1 Lakh:
2% of the amount subject to a
minimum of Rs3000/-
13. In respect of power supply charges paid by the Consumer through
money order, Cheque /DD sent by post, receipt will be drawn and the
Consumer has to collect the same.
14. In case of any belated payment, simple interest at the rate of 1 % per
month will be levied on the actual No. of days of delay subject to a
minimum of Re.1/- for LT installation and Rs.100/- for HT installation. No
interest is however levied for arrears of Rs.10/- and less.
15. All LT Consumers, except BhagyaJyothi and KutirJyothi Consumers, shall
provide current limiter/Circuit Breakers of capacity prescribed by the
Licensee depending upon the sanctioned load.
16. All payments made by the Consumer will be adjusted in the following
order of priority: -
(a) Interest on arrears of Electricity Tax
(b) Arrears of Electricity Tax
(c) Arrears of Interest on Electricity charges
(d) Arrears of Electricity charges
(e) Current month’s dues
17. For the purpose of billing,
(i) the higher of the rated load or sanctioned load in respect of LT
installations which are not provided with Electronic Tri-Vector
meter.
(ii) sanctioned load or MD recorded, whichever is higher, in respect of
installations provided with static meters or Electronic Tri-Vector meter
will be considered.
Penalty and other clauses shall apply if sanctioned load is exceeded.
18. The bill amount shall be paid within 15 days from the date of presentation of
the bill failing which the interest becomes payable.
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19. For individual installations, more than one meter shall not be provided under
the same tariff. Wherever two or more meters are existing for individual
installation, the sum of the consumption recorded by the meters shall be
taken for billing, till they are merged.
20. In case of multiple connections in a building, all the meters shall be
provided at one easily accessible place in the ground floor.
21. Reconnection charges: The following reconnection charges shall be levied
in case of disconnection and included in the monthly bill.
For reconnection of:
a Single Phase Domestic installations
under Tariff schedule LT 1 & LT2 (a)
Rs.20/- per installation
b Three Phase Domestic installations
under Tariff schedule LT2 (a) and
Single Phase Commercial & Power
installations.
Rs.50/- per installation
c All LT installations with 3 Phase supply
other than LT2 (a)
Rs.100/- per installation
d All HT& EHT installations Rs.500/-per Installation.
22. Revenue payments upto and inclusive of Rs.10, 000/- shall be made by
cash or cheque or D.D and payments above Rs.10, 000/- shall be made by
cheque or D.D only. Payments under other heads of account shall be
made by cash or D.D up to and inclusive of Rs.10, 000/- and payment
above Rs.10, 000/-shall be by D.D only.
Note: The Consumers can avail the facility of payment of monthly power
supply bill through Electronic clearing system (ECS)/ Credit cards /
RTGS/ NEFT/ on-line E-Payment / Digital mode of payments in line
with the guidelines issued by the RBI wherever such facility is
provided by the Licensee in respect of revenue payments up to the
limit prescribed by the RBI.
23. For the types of installations not covered under any Tariff schedules, the
Licensee is permitted to classify such installations under appropriate Tariff
schedule under intimation to the K.E.R.C.
24. Seasonal Industries
Applicable to all Seasonal Industries
i) The industries that intend to avail this benefit shall have Electronic Tri-
Vector Meter fitted to their installations.
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ii) ‘Working season’ months and ‘off-season’ months shall be
determined by an order issued by the Executive Engineer of the
concerned O&M Division of the Licensee as per the request of the
Consumer and will continue from year to year unless otherwise
altered. The Consumer shall give a clear one month’s notice in case
he intends to change his ‘ working season’.
iii) The consumption during any month of the declared off-season shall
not be more than 25% of the average consumption of the previous
working season.
iv) The ‘Working season’ months and ‘off-season’ months shall be full–
calendar months. If the power availed during a month exceeds the
allotment for the ‘off-season’ month, it shall be taken for calculating
the billing demand as if the month is the ‘working season’ month.
v) The Consumer can avail the facility of ‘off-season’ up to six months in
a calendar year not exceeding in two spells in that year. During the
‘off-season period, the Consumer may use power for administrative
offices etc., and for overhauling and repairing plant and machinery.
25 Whether an institution availing Power supply can be considered as
charitable or not will be decided by the Licensee on the production
of certificate Form-12 A from the Income Tax department.
26 Time of the Tariff (ToD)
The Commission as decides in the earlier tariff order, decide to continue
compulsory Time of Day Tariff for HT2 (a) and HT2 (b) and HT2(c)
consumers with a contract demand of 500 KVA and above. Further, the
optional ToD would continue as existing earlier for HT2(a), HT2(b) and
HT2(c) consumers with contract demand of less than 500 KVA. Also the
ToD for HT1 consumers on optional basis would continue as existing
earlier. Details of ToD tariff are indicated under the respective tariff
category.
27. SICK INDUSTRIES:
The Government of Karnataka has extended certain reliefs for
revival/rehabilitation of sick industries under the New Industrial Policy
2001-06 vide G.O. No. CI 167 SPI 2001, dated 30.06.2001. Further, the
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Government of Karnataka has issued G.O No.CI2 BIF 2010, dated
21.10.2010. The Commission, in its Tariff Order 2002, has accorded
approval for implementation of reliefs to the sick industries as per the
Government policy and the same was continued in the subsequent
Tariff Orders. In view of issue of the G.O No.CI2 BIF 2010, dated
21.10.2010, the Commission has accorded approval to ESCOMs for
implementation of the reliefs extended to sick industrial units for their
revival / rehabilitation on the basis ofthe orders issued by the
Commissioner for Industrial Development and Director of Industries &
Commerce, Government of Karnataka.
28. Incentive for Prompt Payment / Advance Payment: An incentive at the rate
of 0.25% of such bill shall be given to the following Consumers by way of
adjustment in the subsequent month’s bill:
(i) In all cases of payment through ECS.
(ii) And in the case of monthly bills exceeding Rs.1, 00,000/-
(Rs. one lakh), if the payment is made 10 days in advance
of the due date.
(iii) Advance Payment exceeding Rs.1000/- madeby the
Consumers towards monthly bills
29. Conditions of Supply of Electricity of the Distribution Licensees in the State of
Karnataka and amendments issued thereon from time to time and
Regulations issued under the Electricity Act, 2003 will prevail over the extract
given in this tariff book in the event of any discrepancy.
30. Self-Reading of Meters:
The Commission has approved Self-Reading of Meters by Consumers
and issue of bills by the Licensee based on such readings and the
Licensee shall take the reading at least once in six months and reconcile
the difference, if any and raise the bills accordingly. This procedure may
be implemented by the Licensee as stipulated under Section 26.01 of
Conditions of Supply of Electricity of the Distribution Licensees in the
State of Karnataka.
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ELECTRICITY TARIFF - 2018
PART-1
HIGH TENSION SUPPLY
Applicable to Bulk Power Supply at Voltages of 11KV (including
2.3/4.6 KV) and above at Standard High Voltage or Extra High
Voltages when the Contract Demand is 50 KW / 67 HP and above.
CONDITIONS APPLICABLE TO BILLING OF HT INSTALLATIONS:
1. Billing Demand
A) The billing demand during unrestricted period shall be the
maximum demand recorded during the month or 75% of the CD,
whichever is higher.
B) When the Licensee has imposed demand cut of 25% or less, the
conditions stipulated in (A) shall apply.
C) When the demand cut is in excess of 25%, the billing demand shall
be the maximum demand recorded or 75% of the restricted
demand, whichever is higher.
D) If at any time the maximum demand recorded exceeds the CD or
the demand entitlement, or opted demand entitlement during
the period of restrictions, if any, the Consumer shall pay for the
quantum of excess demand at two times the normal rate per KVA
per month as deterrent charges as per Section 126(6) of the
Electricity Act, 2003. For over-drawal during the billing period, the
penalty shall be two times the normal rate.
E) During the periods of disconnection, the billing demand shall be
75% of CD, or 75% of the demand entitlement that would have
been applicable, had the installation been in service, whichever
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is less. This provision is applicable only, if the installation is under
disconnection for the entire billing month.
F) During the period of energy cut, the Consumer may get his demand
entitlement lowered, but not below the percentage of energy
entitlement, (For example, In case the energy entitlement is 40%
and the demand entitlement is 80%, the re-fixation of demand
entitlement cannot be lower than 40% of the CD). The benefit of
lower demand entitlement will be given effect to from the meter
reading date of the same month, if the option is exercised on or
before 15th of the month. If the option is exercised on or after 16th
of the month, the benefit will be given effect to from the next
meter reading date. The Consumer shall register such option by
paying a processing fee of Rs.100/- at the Jurisdictional sub-
division office.
(i) The billing demand in such cases, shall be the “Revised
(Opted) Demand Entitlement” or, the recorded demand,
whichever is higher. Such option for reduction of demand
entitlement, is allowed only once during the entire span of
that particular “Energy Cut Period”. The Consumer, can
however opt for a higher demand entitlement upto the
level permissible under the demand cut notification, and
the benefit will be given effect to from the next meter
reading date. Once the Consumer opts for enhancement
of demand, which has been reduced under Clause (F), no
further revision is permitted during that particular energy
cut period.
(ii) The opted reduced demand entitlement will automatically
cease to be effective, when the energy cut is revised. The
facility for reduction and enhancement can however be
exercised afresh by the Consumer as indicated in the
previous paras.
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G) For the purpose of billing, the billing demand of 0.5 KVA and
above will be rounded off to the next higher KVA, and billing
demand of less than 0.5 KVA shall be ignored.
2. Power factor (PF)
It shall be the responsibility of the HT Consumer to determine the
capacity of PF correction apparatus and maintain an average PF of
not less than 0.90.
(i) The specified P.F. is 0.90. If the power factor goes below 0.90
Lag, a surcharge of 3 Paise per unit consumed will be levied
for every reduction of P.F. by 0.01 below 0.90 Lag.
(ii) T
he power factor when computed as the ratio of KWh / KVAh
will be determined upto 3 decimals (ignoring figures in the
other decimal places), and then rounded off to the nearest
second decimal as illustrated below:
(a) 0.8949 to be rounded off to 0.89
(b) 0.8951 to be rounded off to 0.90
In respect of Electronic Tri-Vector meters, the recorded average PF
over the billing period shall be considered for billing purposes. If the
same is not available, the ratio of KWh to KVAh consumed in the
billing month shall be considered.
3. Rebate for supply at high voltage:
If the Consumer is availing power at voltage higher than 13.2 KV, he will
be entitled to a rebate as indicated below:
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Supply Voltage: Rebate
A) 33/66 KV 2 Paise/unit of energy consumed
B) 110 KV 3 Paise/unit of energy consumed
C) 220 KV 5 Paise/unit of energy consumed
The above rebate will be allowed in respect of all the installations of the
above voltage class, including the existing installations, and also for
installations converted from 13.2 KV and below to 33 KV and above and
also for installations converted from 33/66 KV to 110/220 KV, from the
next meter reading date after conversion / service / date of notification
of this Tariff order, as the case may be. The above rebate is applicable
only on the normal energy consumed by the Consumer, including the
consumption under TOD Tariff, and is not applicable on any other
energy allotted and consumed, if any, viz.,
i) Wheeled Energy.
ii) Any energy, including the special energy allotted over and above
normal entitlement.
iii) Energy drawal under special incentive scheme, if any.
The above rebate is not applicable for Railway Traction.
4. In respect of Residential Quarters/ Colonies availing Bulk power supply by
tapping the main HT supply, the energy consumed by such Colony
loads, metered at single point, shall be billed under HT-4 tariff schedule.
No reduction in demand recorded in the main HT meter will be allowed.
5. Energy supplied may be utilized for all purposes associated with the
working of the installations, such as, Office, Stores, Canteens, Yard
Lighting, Water Supply and Advertisements within the premises.
6. Energy can also be used for construction, modification and expansion
purposes within the premises.
7. Power supply under HT-4 tariff schedule may be used for Commercial
and other purposes inside the colony, for installations such as Canteen,
Club, Shop, Auditorium etc., provided, this load is less than 10% of the
CD.
8. In respect of Residential Apartments availing HT Power supply under HT-4
tariff schedule, the supply availed for Commercial and other purposes
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like Shops, Hotels, etc., will be billed under appropriate tariff schedule,
(Only Energy charges) duly deducting such consumption in the main HT
supply bill. No reduction in the recorded demand of the main HT meter is
allowed. Common areas shall be billed at Tariff applicable to that of the
predominant Consumer category. [
9. Seasonal Industries
a. The industries, which intend to utilize seasonal industry benefit,
shall conform to the conditionalities under Para no. 24 of the
General terms and conditions of tariff (applicable to both HT &
LT).
b. The industries that intend to avail this benefit, shall have Electronic
Tri-Vector Meter fitted to the installation.
c. Monthly charges during the working season shall be the demand
charges on 75% of the contract demand or the recorded
maximum demand during the month, whichever is higher, plus
the energy charges
d. Monthly charges during the off season, shall be demand charges
on the maximum demand recorded during the month, or 50% of
the CD whichever is higher plus the energy charges.
TARIFF SCHEDULE HT 1
Applicable to Water Supply, Drainage / Sewerage water treatment plant and
Sewerage Pumping installations, belonging to Karnataka Urban Water Supply
and Sewerage Board, other local bodies, State and Central Government.
RATE SCHEDULE
Demand charges Rs.200/-KVA of billing demand/month
Energy charges 485 paise/unit
TOD Tariff at the option of the Consumer Time of Day Increase + / reduction (-) in energy
charges over the normal tariff applicable
06.00 Hrs to 10.00 Hrs + 100 paise per unit
10.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs + 100 paise per unit
22.00 Hrs to 06.00 Hrs (-)100 paise per unit
Note: Energy supplied to residential quarters availing bulk supply by the
above category of Consumer, shall be metered separately at a
single point, and the energy consumed shall be billed at HT-4
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Tariff. No reduction in the demand recorded in the main HT meter
will be allowed.
TARIFF SCHEDULE HT-2(a)
Applicable to Industries, Factories, Workshops, Research & Development
Centres, Industrial Estates, Milk dairies, Rice Mills, Phova Mills, Roller Flour
Mills, News Papers, Printing Press, Railway Workshops/KSRTC Workshops/
Depots, Crematoriums, Cold Storage, Ice & Ice-cream mfg. Units,
Swimming Pools of local bodies, Water Supply Installations of KIADB and
other industries, all Defence Establishments. Hatcheries, Poultry Farm,
Museum, Floriculture, Green House, Bio Technical Laboratory, Hybrid
Seeds processing Units, Stone Crushers, Stone cutting, Bakery Product
Manufacturing Units, Mysore Palace illumination, Film Studios, Dubbing
Theatres, Processing, Printing, Developing and Recording Theaters, Tissue
Culture, Aqua Culture, Prawn Culture, Information Technology Industries
engaged in development of Hardware & Software, Information
Technology (IT) enabled Services / Start-ups(As defined in GOI
notification dated 17.04.2015)/ Animation / Gaming / Computer
Graphics as certified by the IT & BT Department of GOK/GOI, Drug Mfg.
Units, Garment Mfg. Units, Tyre retreading units, Nuclear Power Projects,
Stadiums maintained by Government and local bodies, also Railway
Traction, Effluent treatment plants and Drainage water treatment plants
owned other than by the local bodies, LPG bottling plants, petroleum
pipeline projects, Piggery farms, Analytical Lab for analysis of ore metals,
Saw Mills, Toy/wood industries, Satellite communication centres, and
Mineral water processing plants / drinking water bottling plants.
RATE SCHEDULE
HT-2(a): Applicable to all areas of CESC.
Demand charges Rs.200/kVA of billing demand/month
Energy charges
For the first one lakh units 660 paise per unit
For the balance units 680 paise per unit
Railway Traction and Effluent Treatment Plants
Demand charges Rs.210/kVA of billing demand/month
Energy Charges 620 paise per unit for all the units
TARIFF SCHEDULE HT-2(b)
Applicable to Commercial Complexes, Cinemas, Hotels, Boarding & Lodging,
Amusement Parks, Telephone Exchanges, Race Course, All Clubs, T.V. Station, All
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India Radio, Railway Stations, Air Port, KSRTC bus stations, All offices, Banks,
Commercial Multi-storied buildings.
APMC Yards, Stadiums other than those maintained by Government and Local Bodies,
Construction power for irrigation, Power Projects and Konkan Railway Project, Petrol /
Diesel and Oil storage plants, I.T. based medical transcription centers, telecom, call
centers, BPO/KPO Diagnostic centres, concrete mixture (Ready Mix Concrete)
units.
RATE SCHEDULE
HT-2 (b): Applicable to all areas of CESC
Energy charges
For the first two lakh units 825 paise per unit
For the balance units 835 paise per unit
TARIFF SCHEDULE HT-2(c)
RATE SCHEDULE
HT-2 (c) (i)- Applicable to Government Hospitals, Hospitals run by Charitable
Institutions, ESI hospitals, Universities and Educational Institutions belonging to
Government and Local bodies, Aided Educational Institutions andHostels of
all Educational Institutions.
Demand charges Rs.200/kVA of billing demand/month
Energy charges
For the first one lakh units 640 paise per unit
For the balance units 680 paise per unit
RATE SCHEDULE
HT-2 (c) (ii) - Applicable to Hospitals and Educational Institutions other than
those covered under HT-2 (c)(i).
Demand charges Rs.200/kVA of billing demand/month
Energy charges
For the first one lakh units 740 paise per unit
For the balance units 780 paise per unit
Note: Applicable to HT-2 (a) , HT-2 (b) & HT-2(c) Tariff Schedule.
1. Energy supplied may be utilized for all purposes associated
with the working of the installation such as offices, stores,
canteens, yard lighting, water pumping and advertisement
within the premises.
Demand charges Rs.220 /kVA of billing demand/month
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2. Energy can be used for construction, modification and
expansion purposes within the premises.
3. In respect of industries availing HT power supply under HT2
(a) tariff schedule, the supply availed for Effluent Treatment
Plant situated within the premises by fixing the separate sub-
meter, a rebate of 50 paise per unit of electricity consumed
by such Effluent Treatment Plant shall be given to the
applicable tariff schedule. No reduction in the recorded
demand of the main HT supply is allowed.
TOD Tariff applicable to HT-2(a), HT-2(b) and HT-2(c) category.
Time of Day Increase + / reduction (-) in energy
charges over the normal tariff applicable
06.00 Hrs to 10.00 Hrs + 100 paise per unit
10.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs + 100 paise per unit
22.00 Hrs to 06.00 Hrs (-)100 paise per unit
TARIFF SCHEDULE HT-3 (a)
Applicable to Lift irrigation Schemes/ Lift irrigation societies,
RATE SCHEDULE
HT-3 (a)(i): Applicable to LI schemes under Govt. Departments/ Govt.
owned Corporations
Energy charges/ Minimum Charges 225 paise per unit subject to an
annual minimum of Rs.1240 per
HP/Annum
HT-3(a)(ii): Applicable to Private LI schemes and Lift Irrigation societies:
Connected to Urban/Express feeders
Fixed Charges Rs.50 /HP/ per month of sanctioned
load
Energy charges 225 paise/unit
HT-3(a)(iii): Applicable to Private LI schemes and Lift Irrigation societies other
than those covered under HT-3 (a)(ii)
Fixed Charges Rs.30 /HP/ per month of sanctioned
load
Energy charges 225 paise/unit
TARIFF SCHEDULE HT-3 (b)
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HT-3 (b): Applicable to Irrigation and Agricultural Farms, Government
Horticultural Farms, Private Horticulture nurseries, Coffee, Tea,
Rubber, Coconut &Arecanut Plantations.
RATE SCHEDULE
Energy charges / Minimum Charges 425paise per unit subject to an
annual minimum of Rs.1240/- per HP
of sanctioned load.
Note: These installations are to be billed on quarter yearly basis.
TARIFF SCHEDULE HT-4
Applicable to Residential apartments and colonies (whether situated outside or
inside the premises of the main HT Installation) availing power supply
independently or by tapping the main H.T. line. Power supply can be used for
residences, theatres, shopping facility, club, hospital, guest house, yard/street
lighting, canteen located within the colony.
RATE SCHEDULE
Applicable to all areas
Demand charges Rs.120/- per KVA of billing demand/
month
Energy charges 620 paise/unit
NOTE: (1) In respect of residential colonies availing power supply by tapping
the main H.T. supply, the energy consumed by such colony loads
metered at a single point, is to be billed at the above energy rate.
No reduction in the recorded demand of the main H.T. supply is
allowed.
(2) Energy under this tariff may be used for commercial and other
purposes inside the colonies for installations such as, Canteens,
Clubs, Shops, Auditorium etc., provided, this commercial load is less
than 10% of the Contract demand. [
(3) In respect of Residential Apartments, availing HT Power supply
under HT-4 tariff schedule, the supply availed for Commercial and
other purposes like Shops, Hotels, etc., will be billed under
appropriate tariff schedule (Only Energy charges), duly deducting
such consumption in the main HT supply bill. No reduction in the
recorded demand of the main HT meter is allowed. Common areas
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shall be billed at Tariff applicable to the predominant Consumer
category.
TARIFF SCHEDULE HT-5
Tariff applicable to sanctioned load of 67 HP and above for
hoardings and advertisement boards and construction power for
industries excluding those category of consumers covered under
HT2(b) Tariff schedule availing power supply for construction power
for irrigation, power projects and Konkan Railway Projects and also
applicable to power supply availed on temporary basis with the
contract demand of 67 HP and above of all categories.
HT – 5 – Temporary supply
RATE SCHEDULE
67 HP and above:
Fixed charges /
Demand Charges
Rs240/HP/month for the entire sanction load /
contract demand
Energy Charges 1000 paise / unit
Note:
1. Temporary power supply with or without extension of distribution main shall
be arranged through a pre–paid energy meter duly observing the provisions
of Clause 12 of the Conditions of Supply of Electricity of the Distribution
Licensees in the State of Karnataka.
2. This Tariff is also applicable to touring cinemas having license for a duration of
less than one year.
3. All the conditions regarding temporary power supply as stipulated in Clause
12 the Conditions of Supply of Electricity of the Distribution Licensees in the
State of Karnataka shall be complied with before service.
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ELECTRICITY TARIFF-2018
PART-II
LOW TENSION SUPPLY
(400 Volts Three Phase and
230Volts Single Phase Supply)
CESC
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CONDITIONS APPLICABLE TO BILLING OF LT INSTALLATIONS:
1. In the case of LT Industrial / Commercial Consumers, Demand based Tariff at
the option of the Consumer, can be adopted. The Consumer is permitted to
have more connected load than the sanctioned load. The billing demand will
be the sanctioned load, or Maximum Demand recorded in the Tri-Vector
Meter during the month, whichever is higher. If the Maximum Demand
recorded is more than the sanctioned load, penal charges at two times the
normal rate shall apply.
2. Use of power within the Consumer premises for bonafide temporary purpose
is permitted subject to the conditions that, total load of the installation on the
system does not exceed the sanctioned load.
3. Where it is intended to use power supply temporarily, for floor polishing and
such other portable equipment, in a premises having permanent power
supply, such equipment shall be provided with earth leakage circuit breakers
of adequate capacity.
4. The laboratory installations in educational institutions are allowed to install
connected machineries up to 4 times the sanctioned load. The fixed charges
shall however be on the basis of sanctioned load.
5.Besides combined lighting and heating, electricity supply under tariff
schedules LT2 (a) & LT2 (b), can be used for Fans, Televisions, Radios,
Refrigerators and other household appliances, including domestic water
pumps and air conditioners, provided, they are under single meter
connection. If a separate meter is provided for Air-conditioner load, the
Consumer shall be served with a notice to merge this load and to have a
single meter for the entire load. Till such time, the air conditioner load will be
billed under Commercial Tariff.
6. Bulk LT supply:
If power supply for lighting / combined lighting & heating {LT 2(a)}, is availed
through a bulk Meter for group of houses belonging to one Consumer, (ie,
Where bulk LT supply is availed), the billing for energy shall be done at the
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slab rate for energy charges matching the consumption obtained by dividing
the bulk consumption by number of houses. In addition, fixed charges for the
entire sanctioned load shall be charged as per Tariff schedule.
7. A rebate of 25 paise per unit will be given for the House/ School/Hostels
meant for Handicapped, Aged, Destitute and Orphans, Rehabilitation
Centres under Tariff schedule LT 2(a).
8. SOLAR REBATE: A rebate of 50 paise per unit of electricity consumed subject
to a maximum of Rs. 50/- per installation per month will be allowed to Tariff
schedule LT 2(a), if solar water heaters are installed and used. Where Bulk
Solar Water Heater System is installed, Solar Water Heater rebate shall be
allowed to each of the individual installations, provided that, the capacity of
Solar Water Heater in such apartment / group housing shall be a minimum
capacity of 100 Ltr. per household.
9. A rebate of 20% on fixed charges and energy charges will be allowed in the
monthly bill in respect of public Telephone booths having STD/ISD/ FAX facility
run by handicapped people, under Tariff schedule LT 3.
10. A rebate of 2 paise per unit will be allowed if capacitors are installed as per
Clause 23 of Conditions of Supply of Electricity of the Distribution Licensees in
the State of Karnataka in respect of all metered IP Set Installations.
11. Power Factor (PF):
Capacitors of appropriate capacity shall be installed in accordance with
Clause 23 of Conditions of Supply of Electricity of the Distribution Licensees in
the State of Karnataka, in the case of installations covered under Tariff
category LT 3, LT4, LT 5, & LT 6, where motive power is involved.
(i) The specified P.F. is 0.85. If the PF is found to be less than 0.85 Lag, a
surcharge of 2 paise per unit consumed will be levied for every reduction
of P.F. by 0.01 below 0.85 Lag. In respect of LT installations, however, this
is subject to a maximum surcharge of 30 paise per unit.
(ii) The power factor when computed as the ratio of KWh/KVAh will be
determined up to 3 decimals (ignoring figures in the other decimal
places) and then rounded off to the nearest second decimal as
illustrated below:
(a) 0.8449 to be rounded off to 0.84
(b) 0.8451 to be rounded off to 0.85
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(iii) In respect of Electronic Tri-Vector meters, the recorded average PF over
the billing period shall be considered for billing purposes.
(iv) During inspection, if the capacity of capacitors provided is found to be
less than what is stipulated in Conditions of Supply of Electricity of the
Distribution Licensees in the State of Karnataka, a surcharge of 30
Paise/unit will be levied in the case of installations covered under Tariff
categories LT 3, LT 5, & LT 6 where motive power is involved.
(v) In the case of installations without electronic Tri-vector meters even after
providing capacitors as recommended in Clause 23.01 and 23.03 of
Conditions of Supply of Electricity of the Distribution Licensees in the
State of Karnataka, if during any periodical or other testing / rating of the
installation by the Licensee, the PF of the installation is found to be lesser
than 0.85, a surcharge determined as above shall be levied from the
billing month following the expiry of Three months’ notice given by the
Licensee, till such time, the additional capacitors are installed and
informed to the Licensee in writing by the Consumer. This is also
applicable for LT installations provided with electronic Tri-vector meters.
12. All new IP set applicants shall fix capacitors of adequate capacity in
accordance with Clause 23 of Conditions of Supply of Electricity of the
Distribution Licensees in the State of Karnataka before taking service. [
13. All the existing IP set Consumers shall also fix capacitors of adequate
capacity in accordance with Clause 23 of Conditions of Supply of Electricity
of the Distribution Licensees in the State of Karnataka, failing which, PF
surcharge at the rate of Rs.60/-per HP/ year shall be levied. If the capacitors
are found to be removed / not installed, a penalty at the same rate as
above (Rs. 60/-per HP / Year) shall be levied.
14.The Semi-permanent cinemas having Semi-permanent structure, with
permanent wiring and license of not less than one year, will be billed under
commercial tariff schedule i.e., LT 3.
15.Touring cinemas having an outfit comprising cinema apparatus and
accessories, taken from place to place for exhibition of cinematography
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films, and also outdoor shooting units, will be billed under Temporary Tariff
schedule i.e., LT 7.
16.The Consumers under IP set tariff schedule, shall use the energy only for pumping
water to irrigate their own land as stated in the IP set application / water right
certificate and for bonafide agriculture use. Otherwise, such installations shall be
billed under appropriate Industrial / Commercial tariff, based on the recorded
consumption if available, or on the consumption computed as per the Table given
under Clause 42.06 of the Conditions of Supply of Electricity of the Distribution
Licensees in the State of Karnataka.
17. The water pumped for agricultural purposes may also be used by the
Consumer for his bonafide drinking purposes and for supplying water to
animals, birds, Poultry farms, Dairy farms and fish farms maintained by the
Consumer in addition to agriculture.
18. The motor of IP set installations can be used with an alternative drive for
other agricultural operations like sugar cane crusher, coffee pulping,
arecanut cutting etc., with the approval of the Licensee. The energy used
for such operation, shall be metered separately by providing alternate
switch and charged at LT Industrial Tariff (Only Energy charges) during the
period of alternative use. However, if the energy used both for IP Set and
alternative operation is measured together by one energy meter, the
energy used for alternate drive shall be estimated by deducting the
average IP Set consumption for that month as per the IP sample meter
readings for the sub division, as certified by the sub-divisional Officer.
19. The IP Consumer is permitted to use energy for lighting the pump house and
well limited to two lighting points of 40 Watts each.
20. Billing shall be made at least once in a quarter year for all IP sets.
21. In the case of welding transformers, the connected load shall be taken
as:
a) Half the maximum capacity in KVA as per the nameplate specified
under IS: 1851
OR
b) Half the maximum capacity in KVA as recorded during the rating by
the Licensee, whichever is higher.
22. Electricity under Tariff LT 3 / LT 5 can also be used for Lighting, Heating and
Air-conditioning, Yard-Lighting, water supply in the respective premises of
Commercial / Industrial Units.
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23. Fluorescent fittings shall be provided by the Licensee for the Streetlights in
the case of villages covered under the Licensee’s electrification
programme for initial installation.
In all other cases, the entire cost of fittings including Brackets, Clamps, etc.,
and labour for replacement, additions and modifications shall be met by the
organizations making such a request. Labour charges shall be paid at the
standard rates fixed by the Licensee for each type of fitting.
24. Lamps, fittings and replacements for defective components of fittings shall
be supplied by the concerned Village Panchayaths, Town Panchayaths or
Municipalities for replacement.
25. Fraction of KW / HP shall be rounded off to the nearest quarter KW / HP for
purpose of billing and the minimum billing being for 1 KW / 1HP in respect of
all categories of LT installations including I.P. sets. In the case of street
lighting installations, fraction of KW shall be rounded off to nearest quarter
KW for the purpose of billing and the minimum billing shall be quarter KW.
26. Seasonal Industries.
a) The industries which intend to utilize seasonal industry benefit, shall
comply with the conditionalities specified under Para no. 24 of the
General terms and conditions of tariff (applicable to both HT & LT).
b) The industries that intend to avail this benefit, shall have Electronic Tri-
Vector Meter fitted to their installation.
c) Monthly charges during the seasonal months shall be fixed charges
and energy charges. The monthly charges during the off seasonal
months, shall be the energy charges plus 50% of the fixed charges.
TARIFF SCHEDULE LT-1
LT-1: Applicable to installations serviced under Bhagya Jyothi and Kutira Jyothi
(BJ/KJ) schemes.
RATE SCHEDULE
Energy charges
(including recovery towards
service main charges)
Nil*
Fully subsidized by the GOK
Commission Determined Tariff for the above category i.e., LT-1 is Rs.6.18 per unit.
*Since GOK is meeting the full cost of supply to BJ / KJ, the Tariff payable by these
Consumers is shown as Nil. However, if the GOK does not release the subsidy in
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advance, a Tariff of Rs.6.18 per unit subject to monthly minimum of Rs. 30/- per
Installation per month shall be demanded and collected from these Consumers.
Note: If the consumption exceeds 40 units per month or any BJ/KJ installation is
found to have more than one out let, it shall be billed as per Tariff
Schedule LT 2(a).
TARIFF SCHEDULE LT-2(a)
Applicable to lighting/combined lighting, heating and motive Power
installations of residential houses and also to such houses where a portion is
used by the occupant for (a) Handloom weaving (b) Silk rearing and reeling
and artisans using motors up to 200 watts (c) Consultancy in, (i) Engineering
(ii) Architecture (iii) Medicine (iv) Astrology (v) Legal matters (vi) Income Tax (vii)
Chartered Accountants (d) Job typing (e) Tailoring (f) Post Office (g)
Gold smithy (h) Chawki rearing (i) Paying guests/Home stay guests (j) personal
Computers (k) Dhobis (l) Hand operated printing press (m) Beauty Parlours (n)
Water Supply installations, Lift which is independently serviced for bonafide use
of residential complexes/residence, (o) Farm Houses and yard lighting limiting
to 120 Watts,(p) Fodder Choppers & Milking Machines with a connected load
upto 1 HP.
Also applicable to the installations of (i) Hospitals, Dispensaries, Health Centres
run by State/Central Govt. and local bodies; (ii) Houses, schools and Hostels
meant for handicapped, aged, destitute and orphans; (iii) Rehabilitation
Centres run by charitable institutions, AIDS and drug addicts Rehabilitation
Centres; (iv) Railway staff Quarters with single meter (v) fire service stations.
It is also applicable to the installations of (a) Temples, Mosques, Churches,
Gurudwaras, Ashrams, Mutts and religious/Charitable institutions; (b) Hospitals,
Dispensaries and Health Centres run by Charitable institutions including X-ray
units; (c) Jails and Prisons (d) Schools, Colleges, Educational institutions run by
State/Central Govt.,/Local Bodies; (e) Seminaries; (f) Hostels run by the
Government, Educational Institutions, Cultural, Scientific and Charitable
Institutions (g) Guest Houses/Travelers Bungalows run in Government buildings
or by State/Central Govt./Religious/Charitable institutions; (h) Public libraries; (i)
Silk rearing; (j) Museums; (k) Installations of Historical Monuments of Archeology
Departments; (l) Public Telephone Booths without STD/ISD/FAX facility run by
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handicapped people; (m) Sulabh / Nirmal Souchalayas; (n) Viswa Sheds
having Lighting Loads only.
RATE SCHEDULE
LT 2 (a) (i): Applicable to areas coming under City Municipal Corporations and
all other urban local bodies
Fixed charges per month For the first KW Rs.40/- per KW
For every additional KW Rs.50/- per KW
Energy charges
For 0 - 30 units (Lifeline
consumption)
325 paise/unit
31 to 100 units 470 paise/unit
101 to 200 units 625 paise/unit
Above 200 units 730 paise/unit
LT-2(a)(ii): Applicable to Areas under Village Panchayats
Fixed charges per month For the first KW Rs.25/- per KW
For every additional KW Rs.40/- per KW
Energy charges
For 0 - 30 units (Lifeline
consumption)
315 paise/unit
31 to 100 units 440paise/unit
101 to 200 units 595 paise/unit
Above 200 units 680paise/unit
TARIFF SCHEDULE LT-2(b)
Applicable to the installations of Private Professional and other Private
Educational Institutions including aided, unaided institutions, Nursing
Homes and Private Hospitals having only lighting or combined lighting &
heating, and motive power. [[[[[
RATE SCHEDULE
LT 2 (b) (i): Applicable to City Municipal Corporations and all other urban local
bodies
Fixed charges Rs.55 Per KW subject to a minimum of Rs.85per
month
Energy charges
0 to 200 units 650 paise/unit
Above 200 units 775 paise/unit
LT-2(b)(ii): Applicable in Areas under Village Panchayats
Fixed charges Rs.45per KW subject to a minimum of Rs.70per
month
Energy charges
0 to 200 units 595 paise/unit
Above 200 units 720paise/unit
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Note: Applicable to LT-2 (a), LT-2 (b) Tariff Schedules.
1 A rebate of 25 paise. Per unit shall be given for installation of a house/
School/ Hostels meant for Handicapped, Aged, Destitute and Orphans,
Rehabilitation Centres run by Charitable Institutions.
2 (a) Use of power within the consumer’s premises for temporary purposes
for bonafide use is permitted subject to the condition that, the total
load of the installation on the system does not exceed the sanctioned
load.
(b) Where it is intended to use floor polishing and such other portable
equipment temporarily, in the premises having permanent supply, such
equipment shall be provided with an earth leakage circuit breaker of
adequate capacity.
3 The laboratory installations in educational institutions are allowed to install
connected machinery up to 4 times the sanctioned load. The fixed
charges shall however be on the basis of sanctioned load.
4. Besides lighting and heating, electricity supply under this schedule can be
used for fans, Televisions, Radios, Refrigerators and other house-hold
appliances including domestic water pump and air conditioners,
provided, they are under single meter connection. If a separate meter is
provided for Air conditioner Load, the consumption shall be under
commercial tariff till it is merged with the main meter.
5. SOLAR REBATE: A rebate of 50 paise per unit of electricity consumed to a
maximum of Rs.50/- per installation per month will be allowed to Tariff
schedule LT 2(a), if solar water heaters are installed and used. Where Bulk
Solar Water Heater System is installed, Solar Water Heater rebate shall be
allowed to each of the individual installations, provided that, the capacity
of Solar Water Heater in such apartment / group housing shall be a
minimum capacity of 100 Ltr, per household.
TARIFF SCHEDULE LT-3
Applicable to Commercial Lighting, Heating and Motive Power installations of
Clinics, Diagnostic Centres, X Ray units, Shops, Stores,
Hotels/Restaurants/Boarding and Lodging Homes, Bars, Private guest Houses,
Mess, Clubs, KalyanMantaps / Choultry, permanent Cinemas/ Semi Permanent
Cinemas, Theatres, Petrol Bunks, Petrol, Diesel and oil Storage Plants, Service
Stations/ Garages, Banks, Telephone Exchanges. T.V.Stations, Microwave
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Stations, All India Radio, Dish Antenna, Public Telephone Booths/ STD, ISD, FAX
Communication Centers, Stud Farms, Race Course, Ice Cream Parlours,
Computer Centres, Photo Studio / colour Laboratory, Photo Copiers, Railway
Installation excepting Railway workshop, KSRTC Bus Stations excepting
Workshop, All offices, Police Stations, Commercial Complexes, Lifts of
Commercial Complexes, Battery Charging units, Tyre Vulcanizing Centres, Post
Offices, Bakery shops, Beauty Parlours, Stadiums other than those maintained
by Govt. and Local Bodies. It is also applicable to water supply pumps and
street lights not covered under LT 6, Cyber cafés, Internet surfing cafés, Call
centres, BPO/KPO, telecom I.T. based medical transcription centres, Private
Hostels not covered under LT -2 (a), Paying guests accommodation provided in
an independent / exclusive premises, concrete mixtures (Ready Mix Concrete)
units .
RATE SCHEDULE
LT-3 (i): Applicable to City Municipal Corporations and all other urban local
bodies.
Fixed charges Rs.60 per KW per month
Energy charges
For 0 - 50 units 750 paise/unit
Above 50 units 850 paise/unit
Demand based tariff (optional) where sanctioned load
is above 5 KW but below 50 KW
Fixed charges Rs.75 per KW
Energy charges As above
RATE SCHEDULE
LT-3 (ii): Applicable in Areas under Village Panchayats
Fixed charges Rs.50 per KW per month
Energy charges For 0 - 50 units 700 paise/unit
Above 50 units 800 paise/unit
Demand based tariff (optional) where sanctioned load
is above 5 KW but below 50 KW
Fixed charges Rs.65 per KW per month
Energy charges As above
Note: 1. Besides Lighting, Heating and Motive power, Electricity supply
under this Tariff can also be used for Yard lighting/ air
Conditioning/water supply in the premises.
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2. The semi-permanent Cinemas should have semi-Permanent
Structure with permanent wiring and licence for a duration of
not less than one year.
3. Touring Cinemas having an outfit comprising Cinema
apparatus and accessories taken from place to place for
exhibition of cinematography film and also outdoor shooting
units shall be billed under LT- 7 Tariff.
4. A rebate of 20% on fixed charges and energy charges shall be
allowed in the monthly bill in respect of telephone Booths
having STD / ISD/FAX facility run by handicapped people.
5. Demand based Tariff at the option of the Consumer can
be adopted as per Para 1 of the conditions applicable to
LT installations.
TARIFF SCHEDULE LT-4 (a), LT-4 (b) & LT-4(c)
Applicable to (a) Agricultural Pump Sets including Sprinklers (b) Pump sets used
in, (i) Nurseries of forest and Horticultural Departments; (ii) Grass Farms and
Gardens; (iii) Plantations other than Coffee, Tea, Rubber and Private
Horticulture Nurseries
TARIFF SCHEDULE LT-4 (a)
Applicable to I.P. Sets upto and inclusive of 10 HP
RATE SCHEDULE
Fixed
charges Free
Energy
charges
Commission Determined Tariff (CDT) for LT4 (a) category is 536 paise per
unit. In case the GOK does not release the subsidy in advance in the
manner specified by the Commission in K.E.R.C. (Manner of Payment of
subsidy) Regulations, 2008, CDT of 536 paise per unit shall be demanded
and collected from these Consumers.
Note: This Tariff is applicable for Coconut and Areca nut plantations also.
TARIFF SCHEDULE LT-4 (b):
Applicable to IP sets above 10 HP
RATE SCHEDULE
Fixed charges Rs.50 per HP per month.
Energy charges 300 paise per unit
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TARIFF SCHEDULE LT-4 (c) (i):
Applicable to Private Horticultural Nurseries, Coffee, Tea and Rubber
plantations of sanctioned load up to and inclusive of 10 HP
RATE SCHEDULE
Fixed charges Rs.40 per HP per month
Energy charges 300 paise per unit
TARIFF SCHEDULE LT-4 (c)(ii):
Applicable to Private Horticultural Nurseries, Coffee , Tea and Rubber
plantations of sanctioned load above 10 HP.
RATE SCHEDULE
Fixed charges Rs.50 per HP per month
Energy charges 300 paise per unit
Note: 1) The energy supplied under this tariff shall be used by the consumers only for
pumping water to irrigate their own land as stated in the I.P. Set application / water
right certificate and for bonafide agriculture use. Otherwise, such installations shall
be billed under the appropriate Tariff (LT-3/ LT-5) based on the recorded
consumption if available, or on the consumption computed as per the Table given
under Clause 42.06 of the Conditions of Supply of Electricity of the Distribution
Licensees in the State of Karnataka.
2) The motor of IP set installations can be used with an alternative drive for other
agricultural operations like sugar cane crusher, coffee pulping, arecanut
cutting etc., with the approval of the Licensee. The energy used for such
operation shall be metered separately by providing alternate switch and charged at
LT Industrial Tariff (Only Energy charges) during the period of alternative use. If the
energy used both for IP Set and alternative operation, is however measured
together by one energy meter, the energy used for alternate drive shall be
estimated by deducting the average IP Set consumption for that month as per the
IP sample meter readings for the sub-division as certified by the sub-divisional
Officer.
3) The Consumer is permitted to use the energy for lighting the pump house and well
limited to 2 lighting points of 40 W each.
4) The water pumped for agricultural purposes may also be used by the Consumer for
his bonafide drinking purposes and for supplying water to animals, birds, Poultry
farms, Dairy farms and fish farms maintained by the Consumer in addition to
agriculture.
5) Billing shall be made at least once in a quarter year for all IP sets. 6) A rebate of 2 paise per unit will be allowed if capacitors are installed as per Clause
23 of Conditions of Supply of Electricity of the Distribution Licensees in the State of
Karnataka in respect of all metered IP Set Installations.
7) Only fixed charges as in Tariff Schedule for Metered IP Set Installations shall be
collected during the disconnection period of IP Sets under LT 4(a), LT 4(b) and LT
4(c) categories irrespective of whether the IP Sets are provided with Meters or not.
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TARIFF SCHEDULE LT-5
Applicable to Heating & Motive power (including lighting) installations of
industrial Units, Workshops, Poultry Farms, Sugarcane Crushers, Coffee Pulping,
Cardamom drying, Mushroom raising installations, Flour, Huller & Rice Mills, Wet
Grinders, Milk dairies, Ironing, Dry Cleaners and Laundries having washing,
Drying, Ironing etc., ExclusiveTailoring shop , Bulk Ice Cream and Ice
manufacturing Units, Coffee Roasting and Grinding Works, Cold Storage Plants,
Bakery Product Mfg. Units, KSRTC workshops/Depots, Railway workshops, Drug
manufacturing units and Testing laboratories, Printing Presses, Garment
manufacturing units, Bulk Milk vending Booths, Swimming Pools of local Bodies,
Tyre retreading units, Stone crushers, Stone cutting, Chilly Grinders, Phova Mills,
pulverizing Mills, Decorticators, Iron & Red-Oxide crushing units, crematoriums,
hatcheries, Tissue culture, Saw Mills, Toy/wood industries, Viswa Sheds with
mixed load sanctioned under Viswa Scheme, Cinematic activities such as
Processing, Printing, Developing, Recording theatres, Dubbing Theatres and film
studios, Agarbathi manufacturing unit., Water supply installations of KIADB &
industrial units, Gem & Diamond cutting Units, Floriculture, Green House, Biotech
Labs., Hybrid seed processing units. Information Technology industries engaged
in development of hardware & Software, Information Technology (IT) enabled
Services / Start-ups(As defined in GOI notification dated 17.04.2015)/ Animation
/ Gaming / Computer Graphics as certified by the IT & BT Department of
GOK/GOI, Silk filature units, Aqua Culture, Prawn Culture, Brick manufacturing
units, Silk / Cotton colour dying, Stadiums maintained by Govt. and local
bodies, Fire service stations, Gold / Silver ornament manufacturing units, Effluent
treatment plants, Drainage water treatment plants, LPG bottling plants and
petroleum pipeline projects, Piggery farms, Analytical Lab. for analysis of ore
metals, Satellite communication centres, Mineral water processing plants /
drinking water bottling plants and soda fountain units.
Tariff for LT 5 :
Tariff for LT 5 (a):
Applicable to areas under Municipal Corporations
i) Fixed charges
Details Approved by the Commission
Fixed
Charges per
i) Rs.40 per HP for 5 HP & below
ii) Rs.45 per HP for above 5 HP & below 40 HP
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Month iii) Rs.60 per HP for 40 HP & above but below 67 HP
iv) Rs.120 per HP for 67 HP & above
Demand based Tariff (optional)
Fixed
Charges per
Month
Above 5 HP and less than 40
HP
Rs.60 per KW of billing
demand
40 HP and above but less
than 67 HP
Rs.85 per KW of billing
demand
67 HP and above Rs.170 per KW of billing
demand
ii) Energy Charges
Details Approved by the Commission
For the first 500 units 510 paise/unit
For the next 500 units 605 paise/ unit
For the balance units 635 paise/unit
Tariff for LT 5 (b):
Applicable to all areas other than those covered under LT-5(a)
i. Fixed charges
Fixed Charges
per Month
i) Rs.35 per HP for 5 HP & below
ii) Rs.40 per HP for above 5 HP & below 40 HP
iii) Rs.55 per HP for 40 HP & above but below 67 HP
iv)Rs.110 per HP for 67 HP & above
ii. Demand based Tariff (optional)
Fixed
Charges
per Month
Above 5 HP and less than 40 HP Rs.55 per KW of billing demand
40 HP and above but less than
67 HP
Rs.80 per KW of billing demand
67 HP and above Rs.160 per KW of billing demand
iii. Energy Charges
0 to 500 units 500 paise/unit
501 to 1000 units 590 paise/unit
Above 1000 units 620 paise/unit
TOD Tariff applicable to LT-5:At the option of the Consumer
Time of Day Increase + / reduction (-) in energy
charges over the normal tariff applicable
06.00 Hrs to 10.00 Hrs + 100 paise per unit
10.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs + 100 paise per unit
22.00 Hrs to 06.00 Hrs (-)100 paise per unit
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NOTE:
1. DEMAND BASED TARIFF
In the case of LT Industrial Consumers, Demand based Tariff at the
option of the Consumer can be adopted. The Consumer is permitted
to have more connected load than the sanctioned load. The billing
demand will be the sanctioned load or Maximum Demand recorded
in the Tri-Vector Meter during the month whichever is higher. If the
Maximum Demand recorded is more than the sanctioned load, penal
charges at two times the normal rate shall apply.
2. Seasonal Industries: The industries which intend to utilize seasonal
industry benefit shall comply with the conditionalities under para no.
24 of general terms and conditions applicable to LT.
3. Electricity can also be used for lighting, heating, and air-conditioning
in the premises.
4. In the case of welding transformers, the connected load shall be taken
as, (a) Half the maximum capacity in KVA as per the name plate
specified under-IS1851, or (b) Half the maximum capacity in KVA as
recorded during rating by the Licensee, whichever is higher.
TARIFF SCHEDULE LT-6
Applicable to water supply and sewerage pumping installations and also
applicable to water purifying plants maintained by Government and Urban
Local Bodies/ Grama Panchayats for supplying pure drinking water to
residential areas, Public Street lights/Park lights of village Panchayat, Town
Panchayat, Town Municipalities, City Municipalities / Corporations / State and
Central Govt. / APMC, Traffic signals, Surveillance Cameras at traffic locations
belonging to Government Department, subways, water fountains of local
bodies. Also applicable to Streetlights of residential Campus of universities,
other educational institutions, housing colonies approved by local
bodies/development authority, religious institutions, organizations run on
charitable basis, industrial area / estate and notified areas, also Applicable to
water supply installations in residential Layouts, Street lights along with signal
lights and associated load of the gateman hut provided at the Railway level
crossing High Mast street lights, Lifts/ Escalators installed in pedestrian road
crossing maintained by Government and Urban local bodies/ Grama
Panchayats independently serviced .
RATE SCHEDULE
Water Supply- LT-6 (a)
Fixed charges Rs.55/HP/month
Energy charges 425 paise/unit
Public lighting- LT-6 (b)
Fixed charges Rs.70/KW/month
Energy charges 585 paise/unit
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Energy Charges for LED/ Induction
Lighting
485 paise/unit
TARIFF SCHEDULE LT-7
Temporary Supply and Permanent Supply to Advertising Hoardings
TARIFF SCHEDULE LT-7(a)
Applicable to Temporary Power Supply for all purposes.
LT 7(a) Details Approved Tariff
Temporary Power
Supply for all
purposes.
Less than 67 HP:
Energy charges at 1000 paise / unit
subject to a weekly minimum of Rs.190
per KW of the sanctioned load.
TARIFF SCHEDULE LT-7(b)
Applicable to Hoardings & Advertisement boards, Bus Shelters with
Advertising Boards, Private Advertising Posts / Sign boards in the interest
of public such as Police Canopy Direction boards, and other sign boards
sponsored by Private Advertising Agencies / firms on permanent
connection basis.
LT 7(b) Details Approved Tariff
Power supply on
permanent
connection basis
Less than 67 HP:
Fixed Charges at Rs.60 per KW/month
& Energy charges at 1000 paise / unit
Note:
1. Temporary power supply with or without extension of distribution main shall
be arranged through a pre–paid energy meter duly observing the provisions
of Clause 12 of the Conditions of Supply of Electricity of the Distribution
Licensees in the State of Karnataka.
2. This Tariff is also applicable to touring cinemas having licence for duration
less than one year.
3. All the conditions regarding temporary power supply as stipulated in Clause
12 of the Conditions of Supply of Electricity of the Distribution Licensees in
the State of Karnataka shall be complied with before service.
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