MSEDCL OVERVIEW

PRESENTATION TO 5TH DISTRIBUTION UTILITY

FORUM (DUF) MEETING

2

MSEDCL AT A GLANCE (MARCH 2019)

Particulars Nos.

Nos. of Consumers 2.66 Crs

Area Covered 3.08 Lakh Sq.KM

Towns 457

Villages 41,095

Zones 16

Circle 45

Divisions 142

Sub-Divisions 633

Section Offices 3227

Employees strength 65,146

Annual Sales 1,09,531 Mus

Annual Revenue from Sale of Power

~ 72,227Cr.

HO

Regional Office

Zone

Circle

Division

Sub-Division

Section

3

MSEDCL INFRASTRUCTURE

Particulars Unit FY 18-19

Sub-Stations Nos. 3,679

HT Lines Ckt-kM 3,78,503

DTCs Nos. 6,10,447

LT Lines Ckt-kM 6,71,482

Sales (incl Franchisee) MU 1,09,531

No. of Ag Connections Nos. 42,20,682

Total No. of Consumers Nos. 2.66 Crs

4

CONSUMER AND REVENUE MIX (FY 18-19)

Provisional As on March

19

Residential, 74%

Commercial, 7%

Industrial, 1%

Agriculture, 16%

Others, 1%

Consumers (Approx 2.66 Cr.)

Residential, 13,587 , 19%

Commercial, 9,033 , 12%

Industrial, 30,202 , 42%

Agriculture, 12,419 , 17%

Others, 6,986 , 10%

Revenue from Sale of power (Rs.72,227 Crs)

Residential, 21065,

19%

Commercial, 7679,

7%

Industrial, 40164,

37%

Agriculture, 34109,

31%

Others, 6514, 6%

Sales (1,09,531 Mus)

5

BOOK PROFIT / LOSS (RS. CRS)

(303) (134)

117

(902) (1,085)

(1,505)

(808) (871)

(280) (366)

(5,336)

785 492 450

(6,000)

(5,000)

(4,000)

(3,000)

(2,000)

(1,000)

-

1,000

2,000

06-07 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19

(Prov.)

Profit/(Loss) after Tax

Profit/(Loss) after Tax

*

*Loss in FY 2015-16 is increased to Rs.5336 Crs which is mainly due to booking of delay payment charges to Genco

& Transco in FY 2015-16. (Rs.3886 Crs)

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STATUS AND FINANCIAL IMPACT OF OPEN ACCESS

1255

1698 1880

1344 1227

4535

6378

7995

5009 4843

2060

3200

3741

2740 2622

328

374

413

208 183

0

50

100

150

200

250

300

350

400

450

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

2014-15 2015-16 2016-17 2017-18 2018-19

MW Mus Revenue Loss in Crs. No. of consumers

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KEY ISSUES

Frequent shifting of Open Access Consumers - Between DISCOM and other sources of

power and USO on DISCOM resulting in stranded capacity.

Determination of Cross Subsidy Surcharge - CSS has been capped to +/- 20% of ABR

Tariff design and rationalization

Determination of Additional Surcharge

Determination of Stand-By charges

Group Captive Consumers.

- Determination of Captive Status only at end of year.

- 26% equity share capital and 51 % self consumption as per Electricity Rules 2005.

- Change of shareholding pattern during the year to avoid CSS and AS

- No provision for Payment Security like LC or Bank Guarantee.

- Matters pending since long before various legal forums.

Banking of RE power

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FINANCIAL IMPACT OF SOLAR ROOFTOP

2016-17 2017-18 2018-19

LT 6 37 133

HT 15 34 156

Total 21 71 289

0

50

100

150

200

250

300

350

MW

2016-17 2017-18 2018-19

LT 1 9 15

HT 1 17 49

Total 2 26 64

0

10

20

30

40

50

60

70

Rs. C

rs.

There is exponential rise in Solar Rooftop.

Rise in No. of consumers : 1074 to 14392 and Solar Generation : 4 Mus to 253 Mus.

Solar Capacity in MW Cross Subsidy Impact in Rs. Crs.

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KEY ISSUES AND GROSS METERING

Net-Metering affect the Cross subsidy structure of tariff

Industrial Consumers opt to install Solar Rooftop as Captive Generation without opting for Net metering

Gross Metering:

Entire injected power is procured at APPC rate or rate discovered through Competitive Bidding.

No loss of sales to DISCOM and Full recovery of Distribution Cost

Cross subsidy maintained within the category of consumers

Gross Metering provides level playing field to all consumers.

MERC Distribution OA Regulations, 1st amendment 2019 : Gross metering for the consumers who opt for Open Access as well as Solar Rooftop.

THANK YOU

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DISTRIBUTION OPEN ACCESS (DOA) Open Access (OA) has been introduced in Maharashtra since 2005. However, it started gaining

momentum since 2010.

Eligibility: Consumer having contract demand of 1 MW and above.

Special Energy Meter (SEM) is mandated and adjustment of units is in 15 mins time block.

OA consumer can avail Long term (> 7 years), Medium Term (> 3 months but < 5 years) and Short

Term (< 1 month including Day Ahead) Open Access.

OA consumers have to bear Transmission and wheeling charge and loss, Cross subsidy Surcharge

(CSS) and Additional Surcharge (AS introduced since Nov-2016). CSS and AS is not applicable for

captive consumers but ASC is applicable to group captive consumers

OA consumers opted for STOA, as the transmission charges were levied on actual consumption (per

kwh instead of KVA/ month). In case of repeated STOA, MERC has introduced multiplying factor

limited to two times the charge with effect from June 2019.

Banking on ToD basis is allowed for RE generation. Upto June 2019, banking was allowed on yearly

basis. However, from June 2019 onwards banking is on monthly basis.

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SOLAR ROOFTOP – REGULATION 2015

Eligibility: Capacity less than 1 MW; including Consumer catering to a common load such as a Housing Society

Ownership: Generating System may be owned and/or operated by Consumer, or by a third party leasing such System to the Consumer.

Cumulative Capacity: connected to a particular Distribution Transformer shall not exceed 40% of its rated capacity

Individual Project Capacity: Shall not exceed his CD (in kVA) or Sanctioned load (in kW)

Energy Accounting:

If electricity exported exceeds imported, excess shall be carried forward to the next Billing Period as credited Units of electricity.

If electricity imported exceeds exported, Discom to raise bill for the net electricity consumption after adjusting the credited Units.

Unadjusted net credited Units at the end of each financial year shall be purchased by the Discom at APPC approved by MERC for that year, within first month of the following year

RPO/REC: Electricity consumed by consumer, if such Consumer is not an Obligated Entity, qualify towards meeting the Solar RPO of the DISCOM; such energy not eligible for REC

Eligible Consumer can avail subsidy or incentives if offered by the Central / State Government on capital cost of the Rooftop Solar PV system; MEDA will be the Nodal Agency for such subsidy or incentives

13

FINANCIAL IMPACT OF SOLAR ROOFTOP

2016-17 2017-18 2018-19

LT 2 28 69

HT 2 66 184

Total 4 94 253

0

50

100

150

200

250

300

So

lar G

en

era

tio

n i

n M

us

2016-17 2017-18 2018-19

LT 996 4888 13692

HT 78 254 700

Total 1074 5142 14392

0

2000

4000

6000

8000

10000

12000

14000

16000

Nu

mb

er o

f S

ola

r G

en

era

tors

There is exponential rise in Solar Rooftop.