Annual Report 2011-2012 - Bhutan · 6 Annual Report 2011-2012 Sl. No. Object Code Particulars...

1Annual Report 2011-2012

Annual Report 2011-2012

Bhutan Electricity AuthorityRoyal Government of Bhutan

Thimphu Bhutan

དཔལ་ལྡན་འུག་གཞུང་།འུག་ོག་ཤུགས་དབང་འཛིན།

(6TH ISSUE)

2 Annual Report 2011-2012

MESSAGE FROM THE CHAIRMAN

The year 20ll-2012 proved to be yet another fulfilling year for the BEA for successfully completing its 2nd year as an autonomous electricity sector regulator.

In line with the policy of accelerated hydropower development of the Royal Government of Bhutan and one of the major functions of the BEA being issuance of license, the BEA has been successful in issuing construction license to Punatsangchu-Il Hydropower (1020MW), Mangdechu Hydropower (720MW), double circuit 400kV transmission line of Punatsangchhu-I and Tsibjalumchhu diversion scheme for augmentation of Tala hydropower plant.

Working towards ensuring electrical safety as one of the principal priorities mandated by the Electricity Act and regulations, the BEA has conducted safety audits and investigations of the licensees. Besides, BEA also started electrical safety awareness campaign that will raise level of safety awareness amongst the general public thereby leading to reduction of electrical related accidents.

I would like to express my sincere appreciation and deep gratitude to all the Authority Members, staff of the Secretariat, the Licensees and the stakeholders for extending their unwavering support and assistance to the BEA in the discharge of its functions effectively and efficiently.

We shall continue to look forward to the constant support and generous cooperation from all the stakeholders.

Tashi Delek.

(Dasho Sonam Tshering)Chairman



FROM THE CEO’s DESK


It is great a privilege for me to present the 6th Annual Report of Bhutan Electricity Authority for the fiscal year 20II-20I2.

The year witnessed an accomplishment of numerous and significant activities by BEA under wise guidance and Chairmanship of Dasho Sonam Tshering, Hon’ble Secretary, Ministry of Economic Affairs. The Commissioners’ tireless effort in providing prompt and strong support to the BEA Secretariat has been crucial in achieving almost all of the targeted operational plans.

Notable achievements during the year were issuance of license to construct: a) 1020MW Punatsangchhu-Il Hydropower Plant; b) 720MW Mangdechhu Hydropower Plant; c) 400kV Transmission line of Punatsangchhu-I Hydropower Plant; d) Tsibjalumchhu diversion scheme for augmentation of Tala hydropower plant.

ln addition, “Permit to Survey” were issued to: a) Gakhil Tshogpa, Shingkhar, Bumthang for 9 Pico kW hydropower plant; b) Druk Green Power Corporation for 210 MW Nikachhu Hydroelectric Project; and c) DRE, windpower project.

Constantly moving closer towards fulfilling the mandate of BEA for provisioning safe, reliable and quality electricity supply, the Authority has: a) issued standard for use of electric fence in the country; b) started conducting safety awareness to the public; c) conducted Safety Audit for BPC and DGPC; and d) drafted Monitoring Guidelines.

It is of immense pleasure to report that the books of Accounts of the Secretariat were audited by the Royal Audit Authority without any major observations mirroring our integrity in execution.

We gladly acknowledge with pride the strict compliance by all the licensees while executing their activities by taking precautionary measures towards protection of natural resources, environment and other public facilities that are affected by the development activities.

Finally, I take this opportunity to thank and acknowledge the enormous contribution made by my Predecessor, Mr. Karma Tshering that ranges from human capacity development to development of rules, regulations and guidelines. I am confident he will continue to bring such similar results in his new assignment as Director of Department of Renewable Energy.

Tashi Delek.

(Samdrup K Thinley)Chief Executive Officer


CONTENTS

1. Functions of the authority..........................................................1

2. Authority..................................................................................2

3. The Secretariat.........................................................................3

4. The Organogram.......................................................................4

5. Functions of the Secretariat.......................................................5

6. Revenue and expenditure..........................................................6

7. Major achievements during the fiscal year...................................8

8. Safety....................................................................................11

9. Institutional capacity building..................................................16

10. Operational plan for the fiscal year 2012 - 2013.......................17

11. Licensed hydro-power projects in operation...............................18

12. Licensed hydro-power projects under construction.....................20

13. Hydropower projects: Issue of license likely...............................21

14. Licensed mini and micro hydel projects in operation..................22


1. FUNCTIONS OF THE AUTHORITY

1.1. FUNCTION OF THE BHUTAN ELECTRICITY AUTHORITY ARE:

1.1.1 To develop regulations, standards, codes, principles and procedures, which include, but are not limited to the following:

(a) Performance standards, including minimum technical and safety requirements for construction, operation and maintenance of generation, transmission and distribution facilities;

(b) Tariff-setting, including tariffs for generation not regulated by power purchase agreement, transmission, distribution and retail sale. These regulations should also comprise terms and conditions for connection fees and investment contribution from customers, and for provision of access to the transmission grid and distribution networks;

(c) Subsidies to entities carrying out non-economic viable electricity supply based on the policies and planning executed by the Minister;

(d) Requirements for Licensees’ reporting, accounting and issuance of information to the Authority;(e) System operation, including dispatch of generation; and(f) Levies, charges or royalties to be paid by Licensees.

1.1.2 To process applications and issue, modify and revoke licenses for generation, transmission, system operation, export, import, distribution and sale of electricity;

1.1.3 To monitor the performance of Licensees and their compliance with provision of this Act, regulations, standards, codes, licenses and contracts approved by the Authority and concession agreements entered into between the Minister and Licensees;

1.1.4 To determine, or approve tariffs proposed by the Licensees, and review existing tariffs;1.1.5 To prescribe and collect fees, charges or royalties from Licensees;

1.1.6 To impose any fines, sanctions or penalties for any breach of provisions of this Act, regulations, standards, codes, licenses or contracts to be approved by the Authority, and concession agreements entered into between Licensees and the Government;

1.1.7

1.1.8 Any other duties or responsibilities delegated by the Minister.

1.2 THE AUTHORITY SHALL, IN THE PERFORMANCE OF HIS FUNCTIONS:

(a) Ensure the reliability, quality, security and efficiency of electricity supply;(b) Encourage competition in electricity generation, transmission and supply;(c) Ensure non-discriminatory access to the transmission and distribution system;(d) Ensure a fair balance of the interests of the public, customers and participants in the electricity sector;(e) Facilitate the development of generation, transmission and distribution of electricity throughout the

country; and(f) Ensure the protection of the natural resources, the environment and other public interests affected by

the development of electricity supply.

To establish a dispute resolution process and settle disputes between Licensees and between Licensees and customers relating to the enforcement of this Act, regulations, codes, standards and licenses issued under this Act, contracts approved by the Authority and concession agreements entered into between the Minister and Licensees, or otherwise any other arrangement for settlement of disputes which are not determined by the mentioned legal instruments; and


2. AUTHORITY

The Bhutan Electricity Authority (BEA) has been established in accordance with Part 2 Section 7 of the Electricity Act of Bhutan 2001. As per Section 8 of the Electricity Act 2001, the Authority should have a Chairman and not less than three members. However, in order to establish the Authority with diverse background, the Authority consists of a Chairman, five (5) members including the Chief Executive Officer as the Member Secretary. All of the Authority Members are appointed by the Hon’ble Minister, Ministry of Economic Affairs as per Section 8.1 of the Electricity Act of Bhutan, 2001. The Authority members are constituted from various organizations such as Government as well as Public Enterprises. For the first time, the Chief Executive Officer was appointed from Public sector with effect from 1st July 2012. The details of members are shown on below:

Dasho Sonam Tshering (Chairman)Honorable Secretary Ministry of Economic Affairs (MoEA)

Ugyen Norbu (Member)Chief Program Officer,

PED: Ministry of Finance

Tashi Gyalpo (Member)Deputy Chief

LSD: Office of Attroney General

Kinga Tshering (Member)Chief Executive Officer

DHI INFRA

Loknath Chapagai (Member)Specialist

Dept. of Industry: MoEA

Samdrup K Thinley (Member Secretary)Chief Executive Officer

Bhutan Electricity Authority


Mr. Kapil M Sharma, CPO, PED, Ministry of Finance served as Commissioner from September 2006 till September 2011.

Mr. Karma Tshering served as the Chief Executive Officer of Bhutan Electricity Authority from May 2010 till June 2012.

3. THE SECRETARIAT

The Secretariat is headed by the Chief Executive Officer who is responsible for overall functioning of the Secretariat. The BEA has been granted an autonomous status by the Royal Government of Bhutan on 30th November 2009 and accordingly the employees of the BEA Secretariat were delinked from the Civil Service with effective 31st December 2009.


BHUTAN ELECTRICITY AUTHORITY COMMISSION

CHIEF EXECUTIVE OFFICER

INTERNAL AUDIT UNIT

TECHNICAL DEPARTMENT

LICENSING

&

TECHNICAL

DIVISION

MONITORING

DIVISION

ECONOMIC

RESEARCH

DIVISION

ADMINISTRATION

& HR DIVISION

TARIFF

DIVISION

FINANCE

DIVISION

ENVIRONMENT

UNIT

ECONOMIC DEPARTMENT

ADMINISTRATION, HR AND FINANCE

DEPARTMENT

LEGAL AFFAIRS DIVISION

Bhutan Electricity Authority was granted an autonomous status by the Royal Government of Bhutan on 30th November 2009. Accordingly, the BEA Commission during its 22nd Commission Meeting held on 14th July 2010 approved the following new Organogram for Bhutan Electricity Authority.

4. THE ORGANOGRAM


5. FUNCTIONS OF THE SECRETARIAT

5.1. INTERNAL AUDIT UNITMonitor, audit, report and advise on all financial accounts and human resources development of the secretariat. The official is yet to be recruited.

5.2. LEGAL DIVISIONSettle disputes between Licensees and between Licensees and customers. Provide support from legal perspectives to the Authority, and all departments of the Secretariat. To appear in all judicial proceedings and administration courts, for and on behalf of the BEA.

5.3. TECHNICAL DEPARTMENTDevelop regulations, standards, codes etc. as per the provisions of the Electricity Act and submit to the Authority for approval. Implement the approved regulations, codes, standards etc. Set performance standards and evaluate, inspect and monitor Licensees’ compliance with the Electricity Act, regulations, codes, standards etc. Ensure that the prospective licensee obtain environmental clearances as per the Environmental Assessment Act.

5.4. ECONOMIC DEPARTMENTEvaluate tariff applications received from Licensees and prepare recommendations to the Authority in line with the Electricity Act, regulations and guidelines approval. Develop regulations, standards, guidelines and procedures for tariff setting. Collect fees, charges or royalties from licensees. Conduct research and recommend necessary amendments on economic regulations and implement benchmarking or other efficiency studies for the tariff determination.

5.5. ADMINISTRATION, HUMAN RESOURCES AND FINANCE DEPARTMENTManage the overall general administration of the authority together with management of human resources management through appropriate training as per approved training plan. Also management of finance related activities such as fund management, budget and expenditure control measures in accordance with the annual budget.


Sl. No.

Object Code

ParticularsExpenditure (Nu. Mn.)

2010-2011 2011-2012

TOTAL APPROVED BUDGET 21.870 37.185

1 1.01 Pay & Allowance 5.451 8.472

2 11.01 Travel - In – Country 0.305 0.630

3 11.02 Travel-Outside Country 0.005 0.013

4 12.01 Utilities - Telephone, Fax, Internet 0.029 0.046

5 12.02 Utilities - Utilities Telegram, Postage etc. 0.003 0.002

6 12.03 Utilities -Electricity, Water, Sewerage charges 0.101 0.039

7 14.01 Office Supplies, Printing, Publications 0.442 0.483

8 14.08 S&M – Others (News paper, Magazine) 0.001 0.059

9 15.02 Maintenance of Property – Vehicle 0.302 0.450

10 15.05 Maintenance of Property – Equipment 0.017 0.00

11 15.07 Maintenance of Property – Computers 0.004 0.00

12 17.01 Operating Exp-Advertising 0.209 0.567

13 17.02 Taxes, Duties, Royalties, Handling & B/Charges 0.005 0.0012

14 17.08 Op. Exp-In - Country Meetings & Celebration 0.065 0.060

15 18.01 Hospitality & Entertainment 0.044 0.052

16 24.01 Subscription to International organization.(SAFIR) 0.272 0.150

17 24.03 Contribution - Provident Fund 0.471 0.673

CURRENT EXPENDITURE 7.726 11.708

6.2. EXPENDITURE STATEMENT

Sl. No.

Name of Company Particulars of receiptFinancial Year (Ngultrum)

2010-2011 2011-2012

1 Bhutan Power Corporation Annual license fee 5,554,990.25 7,302,016.23

2 Bhutan Power Corporation Fines received 950,000.00

3 Druk Green Power Corporation Annual license fee 10,360,000.00 10,360,000.00

4 Punatsangchhu Hydroelectricity Project Authority –I

License application fee 100,000.00

5 Punatsangchhu Hydroelectricity Project Authority-II


6 Mangdechhu Hydroelectric Project Authority


Total Amount 16,314,990.25 18,612,016.23

6.1. LICENSE AND OTHER FEES COLLECTED

6. REVENUE AND EXPENDITURE

The Authority’s main source of revenue is generated through the collection of annual license fee and license application fee. While the Electricity Act permits to seek budgetary support from the government should the revenue so collected becomes inadequate, such situation has not reached so far primarily because the Authority has been in the process of building its capacity.


Sl. No.

Object Code

ParticularsExpenditure (Nu. Mn.)

2010-2011 2011-2012

TOTAL APPROVED BUDGET 21.870 37.185

1 45.01 Training – Human Resource Development 1.264 5.975

Training - NORAD Funding 0.500 0.000

2 51.01 Expenditure on Structure – Building 0.015 0.007

3 53.01 Purchase of vehicle 0.000 1.327

4 54.01 Furniture 0.297 0.142

5 54.02 Office Equipment 0.188 0.00

6 54.03 Computer & Peripherals 0.811 0.482

7 55.01 Professional Services 0.169 0.159

CURRENT EXPENDITURE 7.726 11.708

TOTAL EXPENDITURE 10.976 19.800

6.2. EXPENDITURE STATEMENT

6.3. GRAPHICAL REPRESENTATION OF REVENUE AND EXPENDITURE STATEMENT FOR THE YEAR 2010-2011 AND 2011-2012

Graphical representation of amount received and amount spent for the year 2010-2011 and 2011-2012 are shown in the 3D graph here below:


7. MAJOR ACHIEVEMENTS DURING THE FISCAL YEAR

The major achievements of the Bhutan Electricity Authority during the fiscal year 2011-2012 are:

7.1. ISSUANCE OF LICENSE TO CONSTRUCT 1020MW PUNATSHANGCHHU-II HYDROPOWER PLANTThe Punatsangchhu-II Hydroelectric Project Authority submitted their license application to the BEA for issuance of license to construct 1020MW hydropower plant. The BEA Secretariat reviewed the license application as per relevant provisions of the Act and finally granted license to PHPA-II to construct 1020MW power plant.

7.2. ISSUANCE OF LICENSE FOR CONSTRUCTION OF 720MW MANGDECHHU HYDROPOWER PLANTThe BEA reviewed license application submitted by Mangdechhu Hydroelectric Project Authority (MHPA) in accordance with the relevant provisions of the Electricity Act of Bhutan, 2001 and has finally issued construction license to MHPA along with statement of reasons as required by the Act.

7.3. ISSUANCE OF LICENSE FOR CONSTRUCTION OF 400KV TRANSMISSION LINE OF PHPA-I The BEA reviewed the license application submitted by Punatshangchhu-I Hydroelectric Project Authority for construction of two double circuit 400kV transmission line and associated installation from Punatshangchhu-I hydropower plant to Lhamoizingkha and has finally issued construction license to PHPA-I.

7.4. ISSUANCE OF LICENSE FOR CONSTRUCTION OF TSIBJALUMCHHU DIVERSION SCHEME The Druk Green Power Corporation Limited submitted their license application for issuance of license to construct Tsibjalumchhu diversion scheme. The BEA Secretariat reviewed the license application as per relevant provisions of the Act and finally granted license to DGPC to construct Tsibjalumchhu diversion scheme.

7.5. ISSUANCE OF “PERMIT TO SURVEY” LICENSE THE BEA ISSUED THE FOLLOWING “PERMIT TO SURVEY” LICENSE TO:

a. Gakhil Tshogpa, Bumtha for 9kW Pico Hydropower Plant located at Shingkhar, Bumthang on November 21, 2011.

b. Druk Green Power Corporation Limited for 210 MW Nikachhu Hydroelectric Project stating the extension of scope of Nikachhu HEP.

c. Department of Reneawable Enegry, Ministry of Economic Affairs for windpower project.

7.6. CONDUCT RESEARCH FOR THE DEVELOPMENT OF DAM SAFETY GUIDELINESThe BEA reviewed the preliminary draft dam safety guideline and conducted further research, with a view to develop implementable dam safety guidelines for the country. The NVE expert also trained the counterparts of the BEA Secretariat on the provisions of this preliminary draft dam safety guideline. The updated draft dam safety guideline is expected to be finalized in the coming year.

7.7. RESEARCH ON DEVELOPMENT OF SYSTEM OPERATOR REGULATIONThe Electricity Act requires an establishment of National Load Dispatch Centre (NLDC. In the year 2006 the BEA designated the Bhutan Power Corporation Limited (BPC) as system coordinator until the BPC fully establishes the NLDC in the country. Since BPC is preparing for the establishment of NLDC, the BEA with the assistance of NVE system operation expert has developed draft license condition that will be further reviewed.


7.8. DEVELOPMENT OF GUIDELINES FOR EXEMPTION OF LICENSES After a thorough and rigorous research, the BEA finally developed an outline of draft guidelines for exemption of license for electricity generation of 500kW or less. The final outline of the draft guidelines has been forwarded to the NVE for their comments. The NVE counterpart has agreed to provide guidance which will be completed under NORAD-IV.

7.9. ISSUANCE OF STANDARD FOR USE OF ELECTRIC FENCE IN THE COUNTRYAs the electric fence proposed by the MoAF did not conform to any standard, BEA procured and reviewed the electric fencing energizer standard from International Electro-technical Commission (IEC). The BEA Commission finally approved the use of electric fencing energizer manufactured as per the IEC standard and directed the Secretariat to consult the stakeholders such as MoAF and BSB before issuance of final approval. The stakeholders were consulted sometime in June 2012 and conveyed the approval of the use of electric fencing manufactured as per IEC standard.

7.10. PROGRESS REVIEW OF BPC AND DGPC INVESTMENT PLANSBEA carried out the Progress Review of the approved BPC and DGPC Investment Plans by visiting the DGPC plants and majority of the BPC offices and project sites around the country. A report on “Progress Review of the approved BPC and DGPC Investment Plans” has been prepared detailing the achievement of the DGPC and BPC in comparison to the investment plans approved by the BEA during the tariff review in 2010.

7.11. REVIEW OF THE GENERATION TARIFF DETERMINATION METHODOLOGYBased on the decision of 21st Commission meeting held on 12th June 2010 to review the current generation tariff determination methodology, the BEA conducted a detailed study on the Cost of Supply methodology for the generation tariff in the Tariff Determination Regulation. A discussion paper on the review of the generation tariff determination methodology was drafted with the assistance from NVE expert. The detailed discussion paper was presented to the Commission during 30th Commission Meeting held on 24th April 2012 and to the sectoral stakeholders on 26th April 2012. Further discussion and finalization will be done during the next fiscal year.

7.12. ENERGY AUDIT BY ROYAL AUDIT AUTHORITY (RAA)As part of assistance to the RAA for conduct of the Energy Audit, the BEA provided and submitted clarifications with regard to the following documents:a. Tariff Determination Regulation, 2007b. Generation and Distribution Tariff Modelsc. Investment plans of BPC and DGPCd. Electricity Act of Bhutan, 2001e. Revised power tariff of BPC and DGPC (1st August 2010 - 30th June 2013)f. Subsidy provisions in the Electricity Act of Bhutan and Economic Development Policy

7.13. FINALIZATION OF THE DRAFT MONITORING GUIDELINESThe BEA drafted the Guidelines for monitoring the performance of Licensees in accordance with the provisions of the Act, Regulations, standards, Codes and License conditions approved by the Authority and concession agreements entered into between the Minister and Licensees as per Section 11.1 (iii) of the Electricity Act, 2001. The Guideline developed is to be used as mechanism and to be applied by BEA while monitoring the Licensees. The Commission approved the Monitoring (Technical) Guidelines in principle on the 31st Commission Meeting held on 19th June 2012.


7.14. PREPARATION OF CHECKLIST FOR MONITORING OF LICENSEES IN COMPLIANCE WITH REGULATION, CODES AND LICENSE CONDITIONS.

Referring Electricity Act, Regulations, Codes, and License Conditions, a Checklist was developed to monitor the performance of Licensees by BEA. The BEA also referred the Load Demand Forecast, Safety procedure and Measures Report, and Quarter Reports submitted by the Licensees to the Authority to come up with a separate checklist to inspect the Licensees. The BEA shall continue to prepare or incorporate any changes to the checklist as and when required.

7.15. AUDITING OF ACCOUNTS OF BEA FOR TWO FISCAL YEARS OF 2009-2010 AND 2010-2011The Royal Audit Authority (RAA) has conducted the audit of the books of accounts of the BEA pertaining to two fiscal years of 2009-2010 and 2010-2011.

The BEA Secretariat had successfully settled the three audit memos issued by the RAA during the course of the audit prior to the Audit Exit Meeting and hence all issues remained settled as far as accounts of the BEA for the two fiscal years of 2009-2010 and 2010-2011 are concerned.

7.16. IMPLEMENTATION OF TRAININGS AS PER THE APPROVED TRAINING PLANSIn an effort to continuously build the professional capacity of BEA staffs, 13 short term trainings outside Bhutan, 3 study tours and 1 in-country-short-term training were implemented during the fiscal year. In addition, 1 official is presently undergoing long term training at RIM, Simtokha in the field of National Law. Following are the details of various trainings undertaken by BEA staff.

Sl. No.

Target group (Nr. of participants)

Study Tour/ Training

Institute/ Place / Country

DateFunded

by

1Acting Chief (2) & Monitoring Engineer (1)

Study Tour Delhi, Singapore Oct 19-29 2011 BEA

2 Assist Adm. Officer (1) Training Nepal Oct 31- Nov 14, 2011 BEA

3 Licensing Engineer (3) Training Manila, Philippines Dec 12-23, 2011 BEA

4 Accounts Assistant (1) Training Singapore Nov. 22- Dec 3, 2011 BEA

5 Personal Assistant (1) Training Singapore Nov-22 to Dec 3, 2011 BEA

6Asst. Tariff Officer (1) & Asst. Economist (1)

Training Manila, Philippines Dec 12-23, 2011 BEA

7 Asst. Finance Officer (1) Training Manila Philippine Dec 12-23, 2011 BEA

8 Driver (1) TrainingVTI Samthang,

PunakhaJan 28 – Feb 26, 2012 BEA

9 Legal Officer (1)Long Term Training

RIM, Thimphu Feb. 2012 (one year) BEA

10 Monitoring Engineer (1) Training Manila, Philippine May 12-27, 2012 BEA

11 Acting Chief (3) Training Bangkok, Thailand May 21-June 1, 2012 BEA


8. SAFETY

As part of the effort of BEA to ensure safety in the power systems, safety investigations and audits were carried out on regular basis. The Licensees were reminded of their obligations of ensuring safety as the top most pri-ority while carrying out their operations. As per Section 11.1 of the Safety Regulation 2008, all serious safety incidents are required to be reported to the BEA. During the year 2011-2012, Bhutan Power Corporation Limited reported a total of five (5) accidents (2 fatal and 3 non-fatal). Some of the accidents were investigated by the BEA and brief summary of the accidents are reported here below:

8.1. ELECTRICAL ACCIDENT AT DENZOR (ORONG GEWOG), SAMDRUPJONGKHARThe incident took place at Denzor substation on August 17, 2011 with the victim suffering from multiple burns. It was reported that the victim was not assigned any work at Denzor. He was on his way to Orong. The victim claims he did not know how and where he climbed. And there were no single eye witnesses. The Regional Manager, BPC speculated that the victim must have climbed on 16 KVA substation, since his bag and jacket was found near the 16 KVA pole mounted substation. Further the Regional Manager confirms that the anti-climbing devices were not provided.

8.2. ELECTRICAL ACCIDENT AT RANGRI CHUNKU (KABJI GEWOG), PUNAKHA (FATAL)The accident occurred on 15th March 2012. It was learnt from the report submitted by the BPC that a 57 year old man who was deaf and dumb climbed the tree to cut fresh grown branches to feed his cow. The cut off branch fell on 33kV line. While trying to remove the branch from the line, the man was electrocuted. The accident was occurred due to conditions which were not within the direct control of BPC.

8.3. ELECTRICAL ACCIDENT AT CHAMKHAR, BUMTHANGA 24 year old man working as day worker under ESD- Bumthang suffered minor burns on the left palm, right knee and on the thigh on April 23, 2012. The cause of accident was due to the failure of RNR feeder line. The power line had cut off through GO switch going towards Choekhortoe. While waiting for the supply, there was a sudden flashover above the GO switch. It was reported that the victim was leaning on the pole. The flashing was that the loose jumper coming off and contacting with the pole.

8.4. ELECTRICAL ACCIDENT AT BEGANA, THIMPHUThe incident occurred on April 25, 2012. A 10 year old boy climbed on the pole mounted substation and touched live wire on LV side of the distribution board. The boy was thrown off the line and suffered minor burn on the left hand. The inspection team of BEA made investigation of the accident. It was found out that accident occurrence was not within the direct control of BPC. However, the inspection team recommended BPC to provide safety measures like anti-climbing device since the pole mounted distribution substation is located near the footpath of the local residents.

8.5. ELECTRICAL ACCIDENT AT SHA GARJIKHA, WANGDUE DZONGKHAG (FATAL)The accident occurred on 22nd May 2012. The victim (villager) had climbed on the double pole mounted transformer foundation of 33/11 kV, 63 KVA substation and touched B-phase which is disconnected from HT bushing due to flashing. It was found that victim suffered several burns on his left hand and stomach leading him to death. The inspection team after interrogating the family members of the deceased concluded the victim committed suicide. It was observed that the anti-climbing devices and locked enclosure are not provided for the substation.


8.6. ACCIDENT REPORT OF LICENSEES FOR THE PAST THREE YEARSThe accident reports for the fiscal year 2009-2010, 2010-2011 and 2011-2012 for all the licensees are shown here below:

BHUTAN POWER CORPORATION LTD.

Financial Year


PUNATSANGCHHU-I HYDRO-POWER PROJECT AUTHORITY

No safety incident has been reported during the financial year 2011-2012 by Punatsangchhu-I Hydro-Power Project Authority.

DRUK GREEN POWER CORPORATION LTD.

No safety incident has been reported during the financial year 2011-2012 by Druk Green Power Corporation Ltd.

Financial Year

Financial Year


8.7. ELECTRICAL SAFETY AUDITIn line with Section 10 of the Safety Regulation 2008, the Electrical Safety Audits were carried out in the following Substation Maintenance Divisions (SMDs) and Transmission Maintenance Divisions (TMDs) of Transmission Department (TD) under BPC:

Sl. No. Location of SMDs & TMDs Date

1. SMD, BPC, Kilikhar, Mongar 28th September 2011

2. SMD, BPC, Kanglung, Trashigang 30th September 2011

3. TMD, BPC, Kanglung, Trashigang 30th September 2011

4. SMD, BPC, Nangkhor, Pemagatshel 3rd October 2011

5. TMD, BPC, Nangkhor, Pemagatshel 3rd October 2011

6. SMD, BPC, Dewathang, Samdrup Jongkhar 4th October 2011

The main objective for conducting electrical safety audit was to verify the effective implementation of Safety Management System and Safety Rules of BPC in line with the Safety Regulation 2008 of BEA.

PUNATSHANGCHHU-II HYDRO-POWER PROJECT AUTHORITY

No safety incident has been reported during the financial year 2011-2012 by Punatshangchhu-II Hydro-Power Project Authority.

MANGDECHHU HYDRO-POWER PROJECT AUTHORITY

No safety incident has been reported during the financial year 2011-2012 by Mangdechhu Hydro-Power Project Authority.

DAGACHHU HYDRO POWER PROJECT CORPORATION

No safety incident has been reported during the financial year 2011-2012 by Dagachhu Hydro Power Project Corporation.

Financial Year


Morning Session – General Public (villagers)

Sl. No. Location of SMDs & TMDs Date

1. Dagachhu Hydro Power Corporation Limited (DHPC), 6th – 7th March 2012

2.Punatsangchhu Hydroelectric Project Authority-I (PHPA-I), Wangdue Phodrang

9th – 11th March 2012

The objective of carrying out the electrical safety inspection was to verify the compliance with the Act, regulations, codes, standards and licence conditions and directives issued by the Authority for the Hydro Power Construction Companies.

8.9. ELECTRICAL SAFETY AWARENESS CAMPAIGN TO GENERAL PUBLICAs per Section 13 of Safety Regulation 2008, the electrical safety awareness campaign was carried out to general public (villagers) under Trashigang Dzongkhag and the students of Rangjung Higher Secondary School on 1st October 2011. The purpose of conducting electrical safety awareness campaign to general public and students was to educate on proper use of electricity and make them aware of the electrical hazards associated with the use of electricity. The pictures below depict the participants during the awareness campaign.

Further, in an effort to educate and raise the level of public awareness, especially in far-flung villages, on electrical hazards associated with the use of electricity, the electrical safety messages were aired on BBS during the Talent Hunt reality show organized by Mila Communication.

8.8. ELECTRICAL SAFETY INSPECTION During 2011-2012, the electrical safety inspections were conducted in the following hydropower construction projects:


Afternoon Session – Students of Rangjung Higher Secondary School

9. INSTITUTIONAL CAPACITY BUILDING

As the power system in terms of generation, transmission, distributions and number of customer is growing rapidly, the regulatory scopes have also grown simultaneously. Therefore it is mandatory on the part of BEA to grow in terms of staff strength and capability so as be able to carry out the mandates as per the Act and regulations. As such, numbers of BEA staff have grown up to 34 numbers as of June 2012 out of approved staff strength of 50 for BEA. The number of staffs recruited over the years in terms of male and female are shown in the graph below:

Financial Year


10. OPERATIONAL PLAN FOR THE FISCAL YEAR 2012 - 2013

Some of the major targets set by BEA for the coming year are follows:

Sl. No. TargetResponsible

Department/Division

1Issue Permit to Survey and License for construction upon review of license application submitted by the Applicant.

Licensing and Technical Division

2 Process system operation license “do”

3 Research/review of existing Distribution Code “do”

4 Finalization of guidelines for exemption of License “do”

5

Process issuance of license exemption to Department of Renewable Energy, Ministry of Economic Affairs for following micro hydropower plant: i) Existing 70kW at Chendebji; ii) Existing 80kW at Sengor; iii) Proposed 50kW at Soe; and iv) Proposed 100kW at Lingzhi.

“do”

6 Finalize dam safety guidelines “do”

7 Study Right of Way Issues “do”

8Review of DGPC and BPC tariff applications for the tariff period 2013-2016

Economic Research & Tariff Divisions

9Research on development of a regulatory framework for determination of Renewable Energy tariffs.

“do”

10 Review of Regulatory Fees Regulation “do”

11 Development of tariff determination methodology for the System Operator “do”

12 Finalize draft Internal House Wiring Regulation Monitoring Division

13 Research on electrical conductor clearances “do”

14 Review the Safety Code and Safety Regulation “do”

15 Conduct electrical safety awareness to the general public “do”

16Initiate discussion with Regional Regulatory Bodies for cooperation on the various regulatory issues.

Administration and Finance Divisions

17 Redraft the BEA Service Rule and Regulation “do”

18 Implementation of Training as per the approved training plan. “do”

19Initiate tendering process for hiring consultancy to design BEA office building.

“do”


11. LICENSED HYDRO-POWER PROJECTS IN OPERATION

The following hydropower plants now under Druk Green Power Corporation which are in operation are licensed by BEA. The year of commercial operation, date of license, validity of license, capacity and location of the plants are as shown below.

Sl. No.

Name of PlantYear of Com.

Operation Date of License Validity of License

1 Chukha hydropower plant (CHP) 1988 Jan 1, 2009 March 27, 2037

2 Kurichu hydropower plant (KHP) 2002 Jan 1, 2009 March 27, 2037

3 Basochu hydropower plant (BHP) 2005 Jan 1, 2009 March 27, 2037

4 Tala hydropower plant (THP) 2007 April 1, 2009 March 31, 2039

LICENSED HYDRO-POWER PROJECTS IN OPERATION

1020 MW THP

64 MW BHP

60 MW KHP

336 MW CHP


UNITS GENERATED BY MAJOR HYDRO-POWER PLANTS

Units generated by each major hydro-power plants from January to December 2011 are shown in the 3-D chart here below:

Monthly units generated by all the major hydro-power plants from January to December 2011 are shown in the graph here below:


12. LICENSED HYDRO-POWER PROJECTS UNDER CONSTRUCTION

The following hydro-power projects were issued licensed by BEA and are now under construction. Capacity, location, estimated cost, date and validity of license for the projects are shown in the map and format below:

Sl. No.

Name of projectsCost estimate

in millionDate of Issue of

LicenseValidity of License

1 Dagachhu Hydropower Project Nov 1, 2009 Oct 31, 2013

2 Punatsangchhu-I Hydropower Project 35,148 Nov 11, 2008 Nov 10, 2015

3 Punatsangchhu-II Hydropower Project 37,778 Feb 9, 2012 Feb 8, 2019

4 Mangdechhu Hydropower Project 28,963 April 24, 2012 April 23, 2019

LICENSED HYDRO-POWER PROJECTS UNDER CONSTRUCTION

114 MW Dagachhu

720 MW Mangdechhu

1020 MW Punatshangchhu - ll

1200 MW Punatshangchhu - l


13. HYDROPOWER PROJECTS: ISSUE OF LICENSE LIKELY

About five (5) projects are on the pipelines which are likely to apply for license in the coming fiscal year 2012-2013. The locations of these projects are shown in the map below:

HYDRO-POWER PROJECTS (ISSUE OF LICENSE LIKELY IN 2012-2013)

570 MW Wangchhu 2560 MW Sankosh

540 MW Amochhu600 MW Kholongchhu

180 MW Bunakha


14. LICENSED MINI AND MICRO HYDEL PROJECTS IN OPERATION

There are altogether ten (10) micro-hydropower plants and thirteen (13) mini-hydropower plants of which Chinary and Khaling mini hydel are non operational. The mini- and micro- hydro-power-plants of the licensee are shown in the map below:

MICRO HYDEL PROJECTSMINI HYDEL PROJECTS

Annual Report 2011-2012 - Bhutan · 6 Annual Report 2011-2012 Sl. No. Object Code Particulars...

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