15 Annual Report 2013-14 - karunadu

15th

Annual Report 2013-14

Karnataka Electricity Regulatory Commission, 6th & 7th Floors,

Mahalaxmi Chambers, No.9/2, M.G.Road, Bangalore – 560001 Email: [email protected] Website: www.karnataka.gov.in/kerc

Karnataka Electricity Regulatory Commission

15th Annual Report 2014

Karnataka Electricity Regulatory Commission Page 2

KARNATAKA ELECTRICITY REGULATORY COMMISSON

FIFTEENTH

ANNUAL REPORT

2013 – 14

6th& 7th Floors, Mahalaxmi Chambers

No.9/2, Mahatma Gandhi Road, Bangalore - 560 001 Tel: 080 – 25320213 / 214, 25320339, 25323765, Fax: 080 – 25320338

Email: [email protected] Website: www.karnataka.gov.in/kerc

http://www.karnataka.gov.in/kerc



GOKAK POWER HOUSE – 1887



C O N T E N T S

SL.NO. PARTICULARS PAGE NO

1 Foreword 5

2 Introduction 8

3 The Commission & its functions 9

4 The Commission’s Office & Functions of the

Secretary

12

5 Power Sector- An Overview 14

6 Important events during the year 32

7 Activities of the Commission in 2013-14 34

8 Advisory Committee of the Commission 52

9 Implementation of the RTI Act 54

10 Budget and actual expenditure of the

Commission

55

11 Administration 56

12 Commission’s Court 57

13 Activities of the Ombudsman 61

14 Programme for the Year ahead 64

15 Implementation of Kannada in the Commission 68



KARNATAKA ELECTRICITY REGULATORY COMMISSION

M.R. Sreenivasa Murthy 6th& 7th Floors

Chairman Mahalaxmi Chambers # 9/2, M.G. Road

Bangalore – 560 001

FOREWORD

I am happy to present the fifteenth Annual Report of Karnataka Electricity

Regulatory Commission for the year 2013-14 in compliance with the provisions of

Section 105 of the Electricity Act 2003. The Annual Report depicts an overview of

the activities of the Commission during 2013-14 besides outlining the proposed

activities to be taken up for the ensuing year 2014-15. The report also provides a

summary of the Commission’s budget and the actual expenditure of the

Commission for 2013-14.

In the year 2013-14, the Commission has issued Multi Year Tariff Orders for

Transmission and Distribution licensees for the period FY14 – FY16 along with the

Annual Performance Review for FY12 and revision of retail supply tariff for FY14.

Further, the Commission, in its Tariff Orders dated 12th May 2014, has revised the

Annual Revenue Requirement (ARR) and Retail Supply Tariff for FY15 along with

the Annual Performance Review for FY13. The Commission has issued Regulations

and amendment on Fuel Cost Adjustment charges, amendments to Regulations

on Open Access and payment of Fee by Utilities / Stakeholders.

The Commission has issued a roadmap for power sector in the State for the period

ending 2021-22. This report highlights the peak demand and energy requirement

in the State and also the need for capacity addition in generation besides

augmenting the transmission network.

During the year, my colleague Members Sri Vishvanath Hiremath and Sri K.

Srinivasa Rao demitted office on completion of their tenure and Sri H.D. Arun

Kumar and Sri D.B. Manival Raju have joined the Commission as new Members. I

would like to place on record the support provided by the past and the present

Members of the Commission and the Members of the Advisory Committee, Utilities

and Stakeholders in carrying out the functions of the Commission.

M.R.Sreenivasa Murthy

CHAIRMAN



A VIEW OF LINGANAMAKKI WATER CONDUCTING SYSTEM



2. INTRODUCTION

In accordance with the provisions of the Karnataka Electricity Reforms Act,

1999, the Karnataka Electricity Regulatory Commission (KERC) was

established in 1999 and began functioning from 15th November, 1999.

The Government of India enacted the Electricity Act, 2003 and notified the

same on 10th June 2003. This fifteenth Annual Report of the Commission

provides a summary of the activities of the Commission during the year

2013-14 and its proposed programmes for the year ahead i.e. 2014-15. The

report also contains the Budget for 2014-15 and the actual expenditure of

the Commission for the financial year 2013-14.

During the financial year 2013-14, the Commission has issued Tariff Orders

for FY14 in respect of the Transmission and Distribution utilities namely, (i)

Karnataka Power Transmission Corporation Ltd., (ii) Bangalore Electricity

Supply Company Ltd., (iii) Mangalore Electricity Supply Company Ltd., (iv)

Chamundeshwari Electricity Supply Corporation Ltd., (v) Hubli Electricity

Supply Company Ltd., (vi) Gulbarga Electricity Supply Company Ltd., and

(vii) Hukeri Rural Electric Co-operative Society. The Commission has also

issued certain Regulations and amendments during the year which are

highlighted in the succeeding Chapters. The Commission has disposed of

59 petitions filed before it, during the year. The details of the activities

undertaken by KERC during FY14 are discussed in the subsequent

Chapters.



3. THE COMMISSION & ITS FUNCTIONS:

3.1 THE COMMISSION

The Commission consists of the Chairman and two Members. Sri

M.R.Sreenivasa Murthy, IAS (Retd.) assumed charge as Chairman of the

Commission on 24.03.2010.

Sri Vishvanath Hiremath and Sri K.Srinivasa Rao, who had assumed charge

as Members on 23rd October, 2008, have demitted their office on 22nd

October, 2013 on completion of their tenure.

Sri H.D.Arun Kumar and Sri D.B.Manival Raju have assumed charge as

Members of the Commission on 5th March, 2014.

3.2 FUNCTIONS OF THE COMMISSION

1. As per Section 86 of the Electricity Act, 2003, the State Electricity

Regulatory Commissions are required to discharge the following

functions:

a. Determine the tariff for generation, supply, transmission and

wheeling of electricity, wholesale, bulk or retail, as the case may be,

within the State;

b. Regulate electricity purchase and procurement process of

distribution licensees including the price at which electricity shall be

procured from the generating companies or licensees or from other

sources through agreements for purchase of power for distribution

and supply within the State;

c. Facilitate intra-state transmission and wheeling of electricity;



d. Issue licences to persons seeking to act as transmission licensees,

distribution licensees and electricity traders with respect to their

operations within the State;

e. Promote cogeneration and generation of electricity from

renewable sources of energy by providing suitable measures for

connectivity with the grid and sale of electricity to any person, and

also specify, for purchase of electricity from such sources, a

percentage of the total consumption of electricity in the area of a

distribution licensee;

f. Adjudicate upon the disputes between the licensees, and

generating companies and to refer any disputes for arbitration;

g. Levy fee for the purposes of the Electricity Act;

h. Specify State Grid Code consistent with the Grid Code specified

under clause (h) of sub-section (1) of Section 79;

i. Specify or enforce standards with respect to quality, continuity and

reliability of service by licensees;

j. Fix the trading margin in the intra-State trading of electricity, if

considered necessary; and

k. Discharge such other functions as may be assigned to it under the

Act.

2. The State Commission is also to advise the State Government on all or

any of the following matters, namely: -

i. promotion of competition, efficiency and economy in activities of

the electricity industry;

ii. promotion of investment in electricity industry;

iii. reorganization and restructuring of electricity industry in the State;



iv. matters concerning generation, transmission, distribution and

trading of electricity or any other matter referred to the State

Commission by that Government.

3. The State Commission is to ensure transparency while exercising its

powers and discharging its functions.

4. In discharge of its functions, the State Commission is guided by the

National Electricity Policy, the National Electricity Plan and the Tariff

Policy published under Section 3 of the Electricity Act 2003.



4. THE COMMISSION’s OFFICE & SECRETARIAT:

4.1 THE COMMISSION’s OFFICE

The Chairman of the Commission is the Chief Executive as per Section 84

(4) of the Electricity Act, 2003. The Commission is supported by a

Secretariat, headed by the Commission’s Secretary. Sri N. Sriraman, IAS

was appointed as Secretary with effect from 16th August 2012. Subsequent

to his superannuation, he has been continued as Secretary on contract

basis w.e.f. 2nd November 2012.

The Commission’s Office has senior level officers serving as Director

(Technical) and Director (Tariff). They are assisted by Deputy Directors and

other supporting staff. The Organization chart of the Commission is as per

Annex – 1.

4.2 FUNCTIONS OF THE SECRETARY:

The major functions performed by the Secretary are as follows:

a) To supervise and guide the functioning of all the Officers and Staff of

the Commission;

b) To prepare or cause to be prepared briefs and summaries of all

pleadings presented by various parties in each case before the

Commission in discharge of its functions;

c) To assist the Commission in the proceedings relating to the powers

exercisable by the Commission;

d) To ensure execution of the orders passed by the Commission;

e) To collect from the State Government or other offices, companies or

firms or any other party as may be directed by the Commission, such



information as may be considered useful for the purpose of efficient

discharge of the functions of the Commission under the Act and place

the said information before the Commission; and

f) To keep in his custody the seal and records of the Commission.



5. Power Sector – An Overview

5.1 Status of Power Generation in the State:

Sharavathy Generating Station- View of Penstocks (Source: KPCL)

The installed capacity of power generation in Karnataka as on 31.03.2014

including long term contracts for supply of power to the distribution utilities and

the share of the State in the central projects are as indicated below :-

TABLE - 1 (Figures in MW)

Source Hydro Thermal Nuclear Others Total

KPCL 3657 2828 14 6499

Private Generating Companies -UPCL 1080 1080

Cogeneration & Renewables 3156 3156

Captive 350 350

State Total 3657 3908 0 3520 11085

Central Projects (State’s Share) 1695 226 1921

Total 3657 5603 226 3520 13006



In addition to the generation capacity mentioned above there is a 1460

MW coal based thermal generation plant of M/s JSW Steel Works (JSW)

located in Toranagal, Bellary District which does not have any long term

PPA with the State distribution utilities. Also privately owned steam/turbo

captive power generators (above 1 MW each) with a total capacity of

5144 MW are located in different parts of the State, mainly catering to their

captive demand.

Source wise Installed Capacity of Generation



Solar Power Plant (Source: KPCL website)

5.2 Green Power in Karnataka

The following table indicates the potential and envisaged capacity

addition of Renewable Energy Sources (RE) up to June 2014 in the State:

TABLE - 2

Status of Renewable Energy (Figures in MW)

RE Source Potential Allotted Cancelled

Allotted

Capacity

in MW

Implemented

and

Commissioned

Installed

Capacity

having

Approved

PPAs with

Utilities

Balance to be

Commissioned

Wind (At

50mtr Hub

Height)

8391

12843.92 2389.09 10454.83 2501.49 2086.31 7953.34 Wind (At

80mtr Hub

Height)

13983

Mini Hydel 3000 2918.66 388.91 2529.75 742.06 593.23 1787.69

Co-

Generation 1500 1634.35 0.00 1634.35 1144.55 184.74 489.80

Solar 10000 232.00 0.00 232.00 41.00 203.00 191.00

Bio-Mass 1000 369.98 0.00 369.98 103.03 88.67 266.95

Waste to

Energy 135 0.00 0.00 0.00 0.00 8.00 0.00

Total 38009.00 17998.90 2778.00 15220.91 4532.13 3163.95 10688.78



Wind, 2086.31, 66%

Mini Hydel, 593.23, 19%

Co-Generation, 184.74, 6%

Solar, 203, 6%Bio-Mass, 88.67, 3%

Renewable Energy Capacity having Approved

Power Purchase Agreements with ESCOMs

Total : 3156 MW

Figures in MW



5.3 Status of Transmission System in the State:

A 220 KV Substation of KPTCL (Source: KPTCL Website)

An overview of the State Transmission system as on 31.03.2014 is indicated

in the table below:

TABLE - 3

Voltage Level in

KV

No.of Stations Transmission Line in

Ckt. Kms

400 4 2650

220 93 10052

110 359 9703

66 569 10066

TOTAL 1025 32471 (Source: KPTCL Website)

KPTCL has added 26 stations and 609 circuit kilometers of line during the

year 2013-14 and has handled a peak load of 9223 MW on 13th February

2014.



5.4 Status of Distribution System in the State:

The Distribution System in the State is vested with the following five State

owned Distribution companies and one Rural Electricity co-operative

society.

1. Bangalore Electricity Supply Company Ltd., (BESCOM)

2. Mangalore Electricity Supply Company Ltd., (MESCOM)

3. Chamundeswari Electricity Supply Corporation Ltd., (CESC)

4. Hubli Electricity Supply Company Ltd., (HESCOM)

5. Gulbarga Electricity Supply Company Ltd., (GESCOM)

6. Hukeri Rural Electric Co-Operative Society (Hukeri RECS)

Important statistics relating to the distribution system in the State are highlighted in

the table below:

TABLE – 4

Sl.

No

Particulars BESCOM MESCOM CESC HESCOM GESCOM HRECS TOTAL

(As on 31-03-2014)

1 Area Sq. km. 41092 26220 27772.82 54513 43861 991 194449.82

2 Districts Nos. 8 4 5 7 6 30

3 Taluks Nos. 45 22 29 49 31 1 177

4 Population lakhs 207.42 61.55 81.55 166 112.86 3.992 633.372

5 Consumers lakhs 89.25 19.95 26.36 39.39 24.97 1.09 201.01

6 Energy

Sales Mus 24153.25 3920.23 5112.33 8667.48 5724.3 229.12 47806.71

7 Zone Nos. 3 1 1 2 2 9

8 DTCs Nos. 193948 44803 74029 117415 56930 1864 488989

9

Assets

(including

Current

Assets)

Rs. In Crores 11700 3341.38 4146.3 4900* 4999.78* 120.35**

29207.81

10 HT lines Ckt. Kms 83142 28356 32978.54 60619 42831.88 1200 249127.42

11 LT lines Ckt. Kms 158500 73414 71474.33 110115 77614.39 3771 494888.72

12 Total employees strength:

A Sanctioned Nos. 17592 6406 7813 13162 8326 226 53525

B Working Nos. 10994 3707 4826 7206 5066 173 31972

13 Revenue

Demand Rs. In Crores 11520.37 2010.1 2143.78 4302.43* 2850.04 106.43 22933.15

14 Revenue

Collection Rs. In Crores 11208.41 1963.49 1999.39 4169.59* 2593.43 102.74 22037.05

* Provisional ** As per provisional half yearly accounts for FY14



5.4.1 Source wise Generation:

The source wise generation to meet the demand of ESCOMs in the State

during FY09 to FY14 is indicated in the following table:

TABLE – 5(a)

SOURCE

FY09 FY10 FY11

Energy

in

MU

Cost

in

Crs

Per Unit

cost in

Rs./

Unit

Energy

in

MU

Cost

in

Crs

Per Unit

cost in

Rs./

Unit

Energy

in

MU

Cost

in

Crs

Per Unit

cost

in

Rs./

Unit

KPCL Hydel 12975.78 673.19 0.52 11654.76 736.10 0.63 9977.17 745.88 0.75

KPCL Thermal 10730.85 2997.63 2.79 12647.52 3767.35 2.98 10946.85 3375.33 3.08

Central

Generating

Stations

10168.84 2115.97 2.08 10584.79 2458.58 2.32 10575.45 2751.55 2.60

IPPs 726.45 767.73 10.57 530.94 413.62 7.79 2025.03 805.58 3.98

Renewable 4402.29 1669.89 3.79 5017.73 1807.31 3.60 5635.20 1934.16 3.43

Short-term &

Others 1963.49 1327.43 6.76 1798.64 1155.14 6.42 7814.67 3903.51 5.00

UI & Inter ESCOMs

adjustments 993.68 1441.15 14.50 920.76 755.22 8.20 144.66 1039.06 71.83

Total 41961.38 10992.99 2.62 43155.14 11093.32 2.57 47119.03 14555.07 3.09

TABLE – 5(b)

SOURCE

FY12 FY13 FY14*

Energy

in

MU

Cost

in

Crs

Per Unit

cost

in

Rs./

Unit

Energy

in

MU

Cost

in

Crs

Per

Unit

Cost

in Rs./

Unit

Energy

in

MU

Cost

in

Crs

Per

Unit

cost

in

Rs./

Unit

KPCL Hydel 14061.75 708.69 0.50 9996.29 669.09 0.67 12586.14 716.02 0.57

KPCL Thermal 12884.83 4367.25 3.39 12924.77 4993.76 3.86 14228.17 5521.21 3.88

Central

Generating

Stations

11229.76 3387.85 3.02 11742.45 3230.82 2.75 12292.25 3977.54 3.24

IPPs 3412.49 1653.32 4.84 6189.93 2549.95 4.12 6273.75 3100.41 4.94

Renewable 6148.75 2175.01 3.54 5434.21 1883.20 3.47 5617.40 2033.57 3.62

Short-term &

Others 5310.36 2539.02 4.78 11046.66 4839.43 4.38 7016.79 3472.97 4.95

UI & Inter ESCOMs

adjustments -221.19 115.68 -5.23 -151.21 -80.11 5.30 -

Total 52826.75 14946.82 2.83 57183.10 18086.14 3.16 58014.50 18821.92 3.24

* As per the provisional data furnished by ESCOMs on 18.06.2014 for FAC



5.4.2 Energy Consumption for FY10 to FY14:

The category wise sales made by the ESCOMs & HRECS in the State during

the last five years are as follows:

TABLE - 6

Category Consumer

Category

No. of

Installations

Energy

Sold in

MU

No. of

Installations

Energy

Sold in

MU

No. of

Installations

Energy

Sold in

MU

No. of

Installations

Energy

Sold in

MU

No. of

Installations

Energy

Sold in

MU

FY10 FY11 FY12 FY13 FY14*

LT-1 (a) Bhagya

Jyothi 2564490 453.80 2658431 483.06 2776839 506.91 2720200 515.01 2753895 551.21

LT-2

Domestic

AEH & Pvt.

Institutions

10502701 6761.00 10919589 7419.00 11594059 8693.00 11899754 8708.26 12510014 9148.71

LT-3 Commercial 1375322 1802.31 1444747 2073.03 1537019 2506.87 1587215 2512.79 1680917 2587.58

LT-4 (a) IP sets -

upto 10 HP - 1758405 11572.86 1805228 12748.10 1924885 14295.60 2008432 16967.88 2111041 17723.42

LT-4 (b) &

C

Irrigation

Pump sets -

More than

10 HP &

Horticulture

8882 40.25 9055 40.82 9405 42.79 11400 62.19 11971 70.98

LT-5 Lt Industries 299297 1577.84 315125 1688.75 328348 1864.25 347408 1848.53 370168 1822.27

LT-6 Water

Supply 96230 785.27 101840 873.70 107136 980.79 115411 960.41 127131 1073.72

LT-6 Street Lights 100349 687.20 104983 742.68 122443 804.73 114399 851.78 118847 819.30

LT-7

Temporary

Power

Supply

136578 140.01 171013 171.90 206757 215.23 252800 210.64 350997 210.32

LT Total 16842254 23820.54 17530011 26241.04 18606891 29910.17 19057019 32637.49 20034981 34007.51

HT-1 HT Water

Supply 414 1044.16 461 1071.68 493 1189.21 541 1178.07 629 1329.04

HT-2 (a) HT Industries 6122 5932.20 6761 6760.79 7827 8045.55 8037 8156.68 8647 8432.49

HT-2 (b) HT

Commercial 4725 2534.76 5246 2776.40 5910 3490.80 6264 3403.05 6384 3365.78

HT-2(c)

HT

Educational

Institutions /

Hospitals

- - - - - - - - 735 225.67

HT-3(a) &

(b)

HT Irrigation

& LI

Societies

328 161.50 349 175.42 367 192.26 410 268.70 488 322.92

HT-4 Res.

Apartments 337 153.92 351 166.55 375 181.63 417 181.36 336 154.28

HT-5

Temporary

Power

Supply

113 48.79 237 86.15

HT Total 11926 9826.54 13178 10950.84 14972 13099.45 15782 13236.66 17456 13916.33

Total 16854180 33647.08 17543189 37191.88 18621863 43009.62 19072801 45874.14 20052437 47923.83

* As per provisional DCB furnished by ESCOMs



5.4.3 Transmission and Distribution losses:

ESCOMs purchase power from generators and the energy of such

purchases is measured at the interface of generating stations with the

transmission system termed as energy at ex-bus generation. KPTCL

transmits this energy from ex-bus generation to the interface points with the

ESCOMs through its transmission system. The ESCOMs supply this energy to

their consumers through their distribution network. In the process,

technical energy losses are incurred both in the transmission and the

distribution system. Further, in the distribution system, losses are also

incurred due to commercial reasons like theft / pilferage of energy, errors

in metering and billing etc.

During the year 2013-14, KPTCL has reported transmission losses of 3.88%.

The approved and reported transmission losses of KPTCL in the past five

years are as follows:

TABLE - 7

(Figures in %age)

Particulars FY09 FY10 FY11 FY12 FY13 FY14

As approved by KERC 4.03 4.00 4.00 3.98 3.96 3.94

As reported by KPTCL 4.30 4.20 4.39 4.54 3.81* 3.88*

* Transmission losses for FY13 & FY14 are excluding Southern Region losses.

The distribution losses reported by the ESCOMs as against the approved

losses for the year FY14 are as follows:

TABLE - 8

(Figures in %age)

Name of the ESCOM Approved distribution

losses for FY14

Distribution losses

reported by

ESCOMs for FY14*

BESCOM 13.80 13.95

MESCOM 11.75 11.93

CESC 15.50 14.73

HESCOM 19.00 18.05

GESCOM 20.00 21.90

Hukeri RECS 15.00 14.53 * Provisional data



The trajectories of distribution losses of the ESCOMs in the past five years

are as follows:

TABLE - 9

(Figures in %age)

Name of the ESCOM FY09 FY10 FY11 FY12 FY13 FY14*

BESCOM 16.70 15.09 14.48 14.46 14.20 13.95

MESCOM 12.95 12.64 13.07 12.09 11.88 11.93

CESC 17.35 16.42 15.48 16.20 15.07 14.73

HESCOM 25.15 20.86 19.85 19.99 19.88 18.05

GESCOM 26.01 25.53 22.06 21.71 18.97 21.90

Hukeri RECS 15.38 15.19 15.15 15.30 14.91 14.53 * Provisional data

The overall transmission and distribution losses in the State during the past

five years are as follows:

TABLE - 10

(Figures in %age)

FY09 FY10 FY11 FY12 FY13 FY14*

23.26 21.65 21.26 19.96 19.61 18.81 * Provisional data

5.4.4 Renewable Energy Purchase Obligation (RPO): Compliance of ESCOMs

and Open Access [OA] Consumers in FY13:

Section 86(1)(e) of the Electricity Act, 2003 mandates the Commission to

promote co-generation and generation of electricity from renewable

sources of energy by providing suitable measures for connectivity with the

grid and also specify, for purchase of electricity from such sources, a

percentage of the total consumption of electricity in the area of a

distribution licensee. Accordingly, the Commission has issued the KERC

(Procurement of Energy from Renewable Sources) Regulations 2011,

wherein the Commission has specified the percentage of energy to be

sourced from renewable sources by the obligated entities namely the

distribution licensees, captive consumers and open access consumers.

Thus the Renewable purchase Obligation (RPO) refers to the quantum of



renewable energy to be purchased by the distribution licensees and other

obligated entities. The RPO specified by the Commission is as follows:

TABLE - 11

ENTITY NON SOLAR

% RPO

SOLAR

% RPO

BESCOM 10 0.25

MESCOM 10 0.25

CESC 10 0.25

HESCOM 7 0.25

GESCOM 7 0.25

HUKERI RECS 7 0.25

Open Access consumers with contract

demand exceeding 5 MW sourcing power

from other than renewable sources of

energy

5 -

Grid connected Captive consumers with

total capacity exceeding 5 MW and

generating electricity from sources other

than renewables sources.

5 -

The above percentages of RPO specified by the Commission is one of the

highest in the country.

The Status of compliance of RPO by ESCOMs and OA Consumers is

indicated below:

a. Status of Compliance by ESCOMs:

The following table indicates the Status of RPO Compliance in FY13 by

ESCOMs:

TABLE - 12

Name of

the

ESCOM

Non-Solar

RPO

Target

specified

Total

ENERGY

purchased-

MU

RE Non-

solar -MU

Purchased

Non-solar

RE as % of

total

purchase

Solar RPO

Target

specified

Solar RE

Purchase-

MU

Solar RE

Purchased

as % of

total

purchase

Remarks

in % in MU in MU in % in % in MU in %

BESCOM 10 27851.09 3047.068 10.94 0.25 10.15 0.036%

Non-solar RPO

complied.

Solar RPO not

complied due

to non-

availability of



Solar Power

generating

units

MESCOM 10 4451.18 640.94 14.40 0.25 0 0

Non-solar RPO

complied.

Solar RPO not

complied due

to non-

availability of

Solar Power

generating

units

CESC 10 6130.78 611.62 9.98 0.25 0 0

Non-solar RPO

marginally not

complied.

Solar RPO not

complied due

to non-

availability of

Solar Power

generating

units

HESCOM

Including

HRECS

7 11339.07 838.91 7.40 0.25 3.6 0.032%

Non-solar RPO

complied.

Solar RPO not

complied due

to non-

availability of

Solar Power

generating

units

GESCOM 7 7383.34 549.65 7.44 0.25 2.7 0.037%

Non-solar RPO

complied.

Solar RPO not

complied due

to non-

availability of

Solar Power

generating

units

State 9.02% 57155.46 5688.188 9.95 0.25 16.45 0.029%

(Note: Provisional data and subject to reconciliation of energy among ESCOMs)

b. Status of Compliance by Consumers availing Open Access:

The following table indicates the Status of RPO Compliance in FY13

including carry forward RPO of FY12 by obligated Consumers availing

Open Access:



TABLE - 13

FY12 compliance FY13 compliance

FY13

compliance

with FY12

carry

forward to

be met

Remarks

Sl.

No Entity name MW

FY 12

gen.

MWhr

RPO

obligation

@5% MWhr

Carry

forward to

FY13-

MWhr

FY 13

gen.

MWhr

RPO

obligation

@5% MWhr

Compliance

met- MWhr

FY13

Balance

1 ACC Limited, Tondebavi 15 332.98 16.649 0 1409.33 70.467 133 0 0 Complied

2 ACC Ltd., Bellary 15 0 0 0 1183.01 59.150 60 0 0

3 Khayathi Steels Ltd.,

Nanjangud

8 9833.43 491.672 0 3067.39 153.370 155 0 0

4 Kirloskar Ferrous

Industries Ltd., Koppal

7.2 4410.12 220.506 0.506 4384.88 219.244 240 0 0

5

Nava Karnataka Steels

Pvt. Ltd., Bellary

8.5

2.55

0.123

0.123

0

0

0

0

0.123

Fractional

non-

compliance

allowed to

be carried

forward

6 Nestle India Ltd.,

Nanjangud

7 3346.5 167.325 0.325 534.90 26.745 27 0 0.07 Fractional

non-

compliance

allowed to

be carried

forward

7 Rajashree Cement

Works (Unit of Ultra

Tech), Gulbarga

23 5951.94 297.597 0 0 0 0 0 0 Complied

8 Saravana Alloy Steels

Pvt. Ltd, Bangalore

10.15 3780.53 189.027 0 217.06 10.853 3800 0 0 Complied

9 Solaris Chem Tech Ltd.,

Karwar

22 76164.6 3808.23 3808.23 19179.71 958.986 0 958.986 0 Complied

10 Toyota Kirloskar, Bidadi 22 566.35 28.318 6.318 9102.56 455.128 350 105.128 0

11 Ultra Tech Cements Ltd.,

Koppal

8.7 5943.72 297.186 0 327.27 16.364 16 0.364 0.364 Fractional

non-

compliance

allowed to

be carried

forward

12 Vishveshwaraiah Iron &

Steel Ltd., Bhadravathi

10.92 63212.58 3160.63 3160.63 60843.99 3042.200 6239 0 0 Complied

13 J.K.Tyres & Industries Ltd.

Mysore

9.5 0 0 0 636.04 31.802 33 0 0 Complied



5.4.5 Transmission Tariff for FY15:

The approved Transmission charges for FY15 as per the Commission’s tariff

order dated 12th May 2014 is as follows:

TABLE - 14

Particulars Capacity Allocation in

MW

Transmission charges

for FY15 Rs. Crores per

annum

Transmission

charges for

FY15 Rs.

Crores per

Month

BESCOM 8666 1022.49 85.21

MESCOM 1530 180.52 15.04

CESC 2253 265.83 22.15

HESCOM 3706 437.27 36.44

GESCOM 2465 290.84 24.24

TOTAL (MW) 18620 2196.95 183.08

Transmission charges applicable for short term open access customers are

as follows:

TABLE - 15

Transmission Charges (Rs/MW) Amount in Rs/ MW

More than 12 hrs & upto 24 hrs in a day in one block 808.14

More than 6 hrs & upto 12 hrs in a day in one block 404.07

Upto 6 hrs in a day in one block 202.04

5.4.6 Distribution Tariff for FY15:

i. Retail Supply charges for Consumers in Karnataka for FY15 as per the

Commission’s Order dated 12.05.2014 are as under:

TABLE - 16

Tariff

Category Category Description

Particulars/Slab of

consumption (Units or

KWH)

Type of

charges BESCOM

Other

ESCOMs

and Hukeri

RECS

LT-1 BJ/KJ FC 30.00 30.00

EC ACS* ACS*

LT-2(a)(i)

Domestic AEH coming

under BBMP, Municipal

Corpn and all Urban Local

Bodies

For First KW FC 25.00 25.00

For every additional KW FC 35.00 35.00

0-30 EC 2.70 2.70

31-100 EC 4.00 4.00

101-200 EC 5.25 5.25



Above 200 EC 6.25 6.25

LT-2(a)(ii) Domestic AEH coming

under Village Panchayats

For First KW FC 15.00 15.00

For every additional KW FC 25.00 25.00

0-30 EC 2.60 2.60

31-100 EC 3.70 3.70

101-200 EC 4.95 4.95

Above 200 EC 5.75 5.75

LT-2(b)(i)

Pvt Educational Institutions

and Nursing Homes &

Private Hospitals coming

under BBMP, Municipal

Corpn and all Urban Local

Bodies

For each KW FC 35.00 35.00

Subject to minimum of FC 65.00 65.00

0-200 EC 6.00 6.00

Above 200 EC 7.20 7.20

LT-2(b)(ii)

Pvt Educational Institutions

and Nursing Homes &

Private Hospitals coming

under Village Panchayats


Subject to minimum of FC 50.00 50.00

0-200 EC 5.50 5.50

Above 200 EC 6.70 6.70

LT-3 (i)

Commercial Lighting and

heating coming under

BBMP, Municipal Corpn.

and all Urban Local Bodies


0-50 EC 6.75 6.75

Above 50 EC 7.75 7.75

LT-3 (ii)

Commercial Lighting and

heating coming under

Village Panchayats


0-50 EC 6.25 6.25

Above 50 EC 7.25 7.25

LT-4 (a)

IP Sets upto 10HP CDT* CDT*

LT-4 (b) IP Sets more than 10HP For each HP FC 30.00 30.00

EC 2.15 2.15

LT-4 (c) (i)

Pvt Horticulture, Nurseries

&Coffee & Tea plantations

below 10HP

For each HP FC 20.00 20.00

EC 2.15 2.15

LT-4 (c) (ii)

Pvt Horticulture, Nurseries

&Coffee & Tea plantations

above 10HP

For each HP FC 30.00 30.00

EC 2.15 2.15

LT-5 (a)

Industrial heating and

Motive power coming

under BBMP and

Municipal Corporation

Per HP for 5 HP and below FC 30.00 25.00

Per HP for 5 HP to less than

40 HP FC 30.00 30.00

Per HP for above 40 HP to

less than 67 HP FC 40.00 35.00

Per HP Above 67 HP FC 110.00 100.00

0-500 EC 4.75 4.55

501-1000 EC 5.85 5.35

Above 1000 EC 5.85 5.65



LT-5 (b)

Industrial heating and

Motive power coming

under all areas other than

those covered under LT-

5(a)

Per HP for 5 HP and below FC 25.00 25.00

Per HP for 5 HP to less than

40 HP FC 30.00 30.00

Per HP for above 40 HP to

less than 67 HP FC 35.00 35.00

Per HP Above 67 HP FC 100.00 100.00

0-500 EC 4.55 4.55

501-1000 EC 5.35 5.35

Above 1000 EC 5.65 5.65

LT-6(a) Water Supply Per HP FC 35.00 35.00

Per Unit EC 3.30 3.30

LT-6 (b) Street Lights Per HP FC 50.00 50.00


LT-7 Temporary/ Hoarding &

Advertising Boards

Less than 67 HP(EC subject

to weekly minimum of

Rs.160 per KW of the

sanctioned load)

EC 9.00 9.00

HT-1 HT Water supply Per KVA FC 180.00 180.00


HT-2(a)(i)

HT Industries coming under

BBMP and Municipal

Corporation

Per KVA FC 180.00 170.00

For first one lakh units EC 5.75 5.70

For balance units EC 6.15 6.00

BMRCL Per KVA FC 180.00 -

Per Unit EC 5.20 -

Railway Traction& Effluent

Treatment Plants

Per KVA FC 180.00 180.00


HT-2(a)(ii)

HT Industries other than

those covered under HT-

2(a) ( i)

Per KVA FC 170.00 170.00



Railway Traction& Effluent

Treatment Plants

Per KVA FC 180.00 180.00


HT-2(b)(i)

HT commercial coming

under BBMP and Municipal

Corporation

Per KVA FC 200.00 190.00

For first two lakh units EC 7.35 7.15


HT-2(b)(ii)

HT Commercial other than

those covered under HT-

2(b)(i)

Per KVA FC 190.00 190.00

For first two lakh units EC 7.15 7.15


HT-2 (c) (i)

HT- Govt. Hospitals &

Hospital run by Charitable

Institutions & ESI Hospitals

and Universities,

Educational Institutions

belonging to Govt., Local

bodies, Aided Institutions

and Hostels of all

Educational Institutions.

Per KVA FC 170 170


For the balance unit EC 5.90 5.90



HT-2 (c)(ii)

HT-Hospitals and

Educational Institutions

and Hostels of Educational

Institutions other than

those covered under HT-(

c) (i)

Per KVA FC 170 170


For the balance unit EC 6.90 6.90

HT-3(a)(i) LI Schemes under Govt.

EC subject to Annual

minimum of Rs.1000 per

HP/Annum

EC 1.50 1.50

HT-3(a)(ii) LI Schemes on

Urban/Express feeders

Per HP FC 30.00 30.00


HT-3(a)(iii)

LI Schemes other than

those covered under HT-3

(a)(ii)

Per HP FC 10.00 10.00


HT-3(b) HT Agriculture/Horticulture

EC subject to Annual

minimum of Rs.1000 per HP

of sanctioned

load/Annum

EC 3.50 3.50

HT-4(a) HT Residential –Applicable

to all areas

Per KVA FC 100.00 100.00


HT-5

Temporary- applicable to

67 HP and above of all

categories including

Hoarding & Advertising

Boards

Per KVA FC 210.00 210.00

Per Unit (Weekly minimum

is not applicable) EC 9.00 9.00

ESCOM

*Average Cost of Supply

(ACS) Rs/Unit

*Commission Determined

Tariff (CDT) Rs/Unit

BESCOM 5.36 2.03

MESCOM 5.28 3.89

CESC 5.11 4.15

HESCOM 5.48 4.85

GESCOM 5.17 4.31

Hukeri

RECS

Time of day (ToD) Tariff for HT-2(a), HT-2(b) and HT2(c) categories is mandatory from 01.09.2012 .The ToD

tariff on optional basis would continue as existing earlier for HT-1 category and also for LT-5, HT-2(a), HT(b)

and HT2(c) categories with CD of less than 500 KVA at following ToD tariff

Time of Day

Increase(+)/reduction (-)

in energy charges over

the normal tariff

applicable

22.00Hrs to 06.00Hrs (-)125 paise per unit

06.00Hrs to 18.00Hrs 0

18.00Hrs to 22.00Hrs (+)100 paise per unit Note: FC means Fixed Charges and EC means Energy Charges



5.4.7 Renewable Energy PPAs approved during FY14:

The ESCOM wise summary of Renewable Energy Sources (RE) PPAs

approved by the Commission up to FY14 is as follows:

TABLE - 17

Abstract of PPA's approved by KERC

Type Total BESCOM MESCOM CESC HESCOM GESCOM

Terminated/

Court Cases/

Concluded

PPAs

Nos MW Nos MW Nos MW Nos MW Nos MW Nos MW Nos MW

Wind 588 2086.3 222 1120.3 42 149.35 51 121.25 150 462.41 41 87.6 82 145.4

Mini Hydel 71 593.23 8 93.3 14 159.65 17 101.95 3 20 13 73.45 16 144.88

Bio-mass 15 88.67 6 30.49 1 4.5 2 15.6 0 0 6 38.08 0 0

Co-gen 14 184.74 1 26 0 0 2 28 7 77.74 2 33 2 20

Solar

PV/Thermal 21 203 7 44 1 7 3 20 3 20 2 20 5 92

GRAND

TOTAL 709 3155.94 244 1314.09 58 320.5 75 286.8 163 580.15 64 252.13 105 402.28

The ESCOM wise summary of PPAs approved by the Commission during FY14 are as follows:

TABLE – 18

PPAs approved by the Commission during FY14

NCE Source

Category

BESCOM MESCOM CESC HESCOM GESCOM TOTAL

No

Capacity

in MW No

Capacity

in MW No

Capacity

in MW No

Capacity

in MW No

Capacity

in MW No

Capaci

ty in

MW

Wind 1 8.4 - - - - 3 51.25 - - 4 59.65

Mini Hydro - - 1 20 - - - - 1 20

Solar

3 18 1 7 3 20 1 10 - - 8 55

Total 4 26.4 2 27 3 20 4 61.25 - - 13 134.65

The list of PPAs approved during the year is at Annexure – II.



6. IMPORTANT EVENTS DURING THE YEAR

Tariff Orders in respect of KPTCL, ESCOMs and Hukeri RECS for FY15 have

been issued. Retail supply tariff has been increased by 32 paise

(average)per unit and the revised tariff was effective from the first

meter reading date falling on or after 1st May, 2014.

Amendments to the Regulations on collection of Fuel Cost Adjustment

(FCA) charges have been issued. As per the amended Regulations,

the ESCOMs are allowed to adjust any savings in fuel cost during a

quarter to the overall increase in power purchase cost.

Amendment to KERC (Terms and Conditions for Open Access)

Regulations, 2004 notified, adding a clause to disallow open access to

those generators who are having valid PPA with the ESCOMs.

Amendment to KERC (Fees) Regulations, 2004 notified, revising the fee

payable for approval of Power purchase Agreement.

Orientation Program on determination of tariff for transmission and

Distribution business was conducted by the Commission for the Officers

of KPTCL and ESCOMs.

Report on “Road map for Power sector of Karnataka -2021-22” was

published. The report was submitted to the Hon’ble Chief Minister of

Karnataka on 4th September, 2013.

Meetings on Power Quality Monitoring were held with ESCOMs to

review the quality of power supplied to the consumers.

Three Advisory Committee meetings were held during the year to

discuss various important issues pertaining to the sector. Important

issues discussed include review of power availability, plan for meeting

demand during summer months, ERC / Tariff filings of KPTCL and

ESCOMs etc.

44 internal meetings of the Commission were held for discussion and

decision on various issues and subjects placed before the Commission.

Important subjects considered include approval of ERC / Tariff



applications of KPTCL and ESCOMs, short / medium term power

procurement proposals, quarterly FAC charges, prudence of check of

capex of KPTCL & ESCOMs, review of compliance to RPO, discussion

papers / study reports and proposals for amendments to Regulations.

59 cases filed before the Commission were taken up for adjudication

were heard and disposed of during the year. The petitions were mainly

on disputes on terms of PPA, delay / disputes in payments by ESCOMs

to generators, review of tariff for generators.

Average Pooled Power Purchase Cost (APPC) has been notified for the

purpose of implementation of REC.

13 PPAs of Renewable energy generators with ESCOMs were approved.

A comprehensive exercise of review of Finances of ESCOMs was taken

up and completed.

Revised Tariff for Grid interactive Solar Power Plants including for roof

top solar power plants were notified. Similarly, the revised generic tariff

for Wind Energy Sources was also notified.

District wise Consumer grievance Redressal forums (CGRFs) were

established and an “orientation program” was organized by the

Commission for the benefit of newly appointed Members to the District

level CGRF.



7. ACTIVITIES OF THE COMMISSION IN 2013-14

7.1 As per the mandated functions of the Commission specified under Section

86 of the Electricity Act 2003, the following were the major activities

performed by the Commission during the year,

TABLE - 19

Section

of EA

2003

Functions specified Activities during the year

86(1)(a) Determination of tariff for

generation, supply,

transmission and wheeling of

electricity……..

Tariff orders in respect of KPTCL for

transmission charges and ESCOMs for

retail supply and wheeling charges

have been issued.

Revision of Tariff for Solar power

generation and wind generators

taken up and notified.

86(1)(b) Regulation of electricity

purchase and procurement

process of distribution licensee

….

13 Nos. of PPAs have been

approved by the Commission.

86(1)(c) Facilitation of intra state

transmission and wheeling of

electricity

Review of existing standard wheeling

and banking agreement taken up.

Transmission and Wheeling charges

are determined in the respective

tariff orders.

86(1)(d) Issue of license KPTCL, ESCOMs and Hukeri RECS are

the existing licensees.

There are two deemed licensees

(SEZ) in the State.

86(1)(e) Promotion of co-generation

and renewable sources of

energy

RPO has been fixed for the

distribution licensees / captive /

open access consumers and

compliance reviewed.

86(1)(f) Adjudicate upon disputes The Commission heard and disposed

of 59 Petitions during the year.

55 petitions / complaints were filed

during the year.



86(1)(g) Levy of fee Fee as per the provisions of the

Regulations is being collected.

86(1)(h) Specify State Grid Code The existing State Grid Code is taken

up for under modification on the

lines of IEGC.

86(1)(i) Enforcement of Standards The quality, continuity and reliability

of services by licensees are being

monitored on a regular basis.

86(1)(j) Fixing of Trading Margin No cases of intra-state trading

referred to the Commission

86(1)(k) Discharge of other functions Amendments made to Open Access

and Fee Regulations, 2004 and

Regulations and amendment on Fuel

Cost Adjustment Charges.

“Discussion papers” on the following

were prepared and issued:

a) Determination of Tariff for grid

interactive solar power plants.

b) Revision of Wheeling and

Banking Charges.

86(2) Advisory Role Comprehensive report on “Road

map for Karnataka Power Sector for

the period upto 2021-22” was

prepared by the Commission

through C-STEP and submitted to the

Government of Karnataka for

initiating measures to further improve

the power sector.

86(3) Ensuring transparency in the

functioning of the Commission

Public hearings and written

comments / suggestions are being

invited in respect of petitions filed for

tariff revision and issue of other

important orders and Regulations to

ensure wider stakeholder

participation and transparency.

86(4) Commission to be guided by

NEP and Tariff Policy.

The Commission has followed the

broad guidelines and provisions of

NEP and Tariff Policy in discharge of

its mandated functions under the

Electricity Act 2003.



7.2 A brief account of other various activities of the Commission during the

financial year 2013-14 is as under:

1. Tariff Order of KPTCL:

The Commission, in its Tariff Order dated 12th May 2014 has approved ARR

and transmission tariff for FY15 along with the Annual Performance Review

for FY13 in respect of KPTCL.

As against an ARR of Rs.2287.62 Crores sought by KPTCL, the Commission

after Annual Performance Review has allowed an ARR of Rs.1871.34 Crores

for FY13. Considering the actual revenue of Rs.2038.08 Crores, the surplus of

Rs.166.74 Crores was carried forward to the ARR of FY15.

The revised ARR for FY15 is Rs.2196.95 Crores and the revised transmission

charges are Rs.98324 / MW / month. This revised tariff is effective from 1st

May 2014.

2. Tariff Orders of ESCOMs:

The tariff applications were filed by KPTCL and ESCOMs during November

/December 2013. In view of the general elections to the Lokasabha, the

public hearings were held in April 2013. The Commission, in its Tariff Order

dated 12th May 2014 has approved revised ARR and the retail supply tariff

for FY15 along with the Annual Performance Review for FY13 in respect of

ESCOMs. As against an Annual Revenue Requirement (ARR) of Rs.29,960

Crores for estimated sales of 51,248 MU for the year 2014-15 sought by

ESCOMs, the Commission has approved an ARR of Rs.27,860 Crores for

approved sales of 50,097 MU. As against 66 paise per unit hike in tariff

sought by the ESCOMs, the Commission has allowed an average increase

of 32 paise per unit. Additional revenue of Rs.1866 Crores was allowed to



the ESCOMs for the year 2014-15 on account of this revision in Tariff. The

gist of the approved ARR and tariff for FY15 is as under:

TABLE - 20

Approved ARR for FY15

(Rs. In Crores)

Particulars BESCOM MESCOM CESC HESCOM GESCOM Total

Total Expenditure (ARR) 14213.19 2312.46 2916.00 5063.94 3354.86 27860.45

Total Revenue at the

existing rates as per

approved 12653.88 2055.00 2581.45 4520.22 2973.86 24784.41

Revenue Gap 1559.31 257.46 334.55 543.72 381.00 3076.04

Increase in Tariff sought –

Paise per unit (other than

IP and BJ)

66 66 66 66 66 66

Approved increase in

Tariff –Paise per unit

(other than IP and BJ) 32 32 32 32 32 32

Average Cost of supply

on Approved ARR – (Rs.

per unit) 5.60 5.52 5.35 5.72 5.41 5.56

o The existing green tariff of Rs.0.50 per unit is continued.

o The new tariff is effective from the first meter reading date falling on or

after 1st May, 2014.

The important directives issued by the Commission for the year 2014-15 are

as follows:

i) Directive on Load shedding:

In view of the continuing difficulties represented by consumers on account

of unscheduled / unpublished load shedding, the Commission considered

it necessary to issue fresh directives in the matter of load shedding for

minimising inconvenience to consumers. The Commission has 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) ESCOMs shall on a daily basis, estimate the hourly requirement of power

for each substation 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 substations.

(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.

(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) 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) 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) 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) ESCOMs shall submit to the Commission Substation wise and feeder

wise data on interruptions in power supply every month before the 5th

day of the succeeding month.

The Commission has directed that ESCOMs shall make every effort to

minimize inconvenience to consumers, strictly complying with the above

directions. The Commission will review the compliance of directions on a

monthly basis for appropriate orders.

ii) Directive on Establishing a 24x7 Fully Equipped Centralized

Consumer Service Center for Redressal of Consumer Complaints.

ESCOMs are directed to put in place a 24x7 fully equipped Centralized

Consumer Service Center at their Headquarters with state of the art

facility/system for receiving consumer complaints and monitoring their

redressal so that electricity consumers in their 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

ESCOMs are able to lodge their complaints directly with this Centre.

Further, the Commission has directed the ESCOMs to establish/strengthen

24x7 service stations, equipping them with separate vehicles & adequate

line crew, safety kits and maintenance materials at all their Sub-Divisions

including rural areas for effective redressal of consumer complaints.

The Commission has also directed the ESCOMs to hold Consumer

Interaction Meetings in each O&M Sub-Division once every two months

according to a published schedule and invite consumers in advance to

participate in such meetings to sort out their grievances.



In addition to the above new directives issued in the Tariff Orders for 2014-

15, the Commission is also monitoring the implementation of several

directives issued in the earlier Tariff Orders.

3) Regulations, Amendments and Notifications:

The Commission has issued Regulations, Amendments to existing

Regulations and Notifications in the following matters:

a) Notification of Pooled Cost of Purchase for the purpose of

Renewable Energy Certificate (REC):

The Commission has notified for FY14, the pooled cost as per actuals at

Rs.3.14/unit vide its notification-dated 21.04.2014, which was published

in the gazette of Karnataka on 22.04.2014.

b) Amendment to KERC (Fuel Cost Adjustment Charges) Regulations

2013:

The Commission had issued KERC (Fuel Cost Adjustment Charges)

Regulations 2013 on 21st March, 2013. Subsequently, on review of the

claims of ESCOMs for FAC, the Commission observed that, while there

was reduction in fuel cost the overall power purchase cost was more

than the approved power purchase cost. The existing Regulations

required amendments to allow savings in fuel cost to be adjusted to the

overall increase in power purchase cost during any quarter of the year

for which FAC was claimed. Hence, the Commission has notified an

amendment to the existing Regulations on 3rd December, 2013.

c) Amendment to KERC (Fees) Regulations 2004:

The Commission has notified second amendment to the existing KERC

(Fees) Regulations, 2004 on 30th August, 2013. As per the amended



Regulations fees for approval of PPA is based on contracted capacity

instead of existing installed capacity. Power procurement through

bidding process are also included for payment of the prescribed fee for

adoption of tariff/approval of PPA by the Commission.

d) Amendment to KERC (Terms and conditions for Open Access)

(Second Amendment) Regulations 2004:

The Commission has notified second amendment to the existing KERC

(Terms and Conditions for Open Access) Regulations, 2004 on 17th

February, 2014. As per the amended Regulations, any generating

company having subsisting Power Purchase Agreement with the

distribution licensee, shall not be entitled to Open Access for the

capacity (quantum of power) for which PPA is entered into, except in

accordance with the terms of such PPA.

4) Discussion Papers issued:

The following discussion papers were issued during the year:

a) Discussion paper on Determination of Tariff for grid interactive solar

power plants including rooftop and small solar Photo voltaic power

plants.

b) Discussion Paper on “Determining Wheeling & Banking charges for

renewable sources of energy”

5. Important Orders issued during the year:

a) Tariff order for Wind Energy Projects:

The Commission vide its Order dated 10th October, 2013, has revised the

tariff for wind energy projects from Rs.3.70/unit to Rs.4.20/unit. This revised

tariff is applicable to all power purchase agreements signed during the



period of five years from the date of the Order without any escalation for

the period of PPA.

b) Order on Wheeling and Banking charges:

The Commission, after receiving comments from the stake-holders on the

subject matter of revision of Wheeling and Banking charges and also after

hearing the stake-holders on 4.9.2013, passed Orders on 9th October, 2013,

deciding as under:

“

(i) The Wheeling and Banking charges fixed in the Commission’s Order

dated 9.6.2005 and continued thereafter, including in the

Commission’s Tariff Order dated 6.5.2013, shall continue till 31.3.2014 in

respect of RE generators, except captive generators opting for

participation in the REC mechanism.

(ii) Captive Generators who desire to avail of the benefit of Renewable

Energy Certificate mechanism, shall be entitled to exercise an option to

that effect. On exercise of such an option, they shall be liable to pay

the normal transmission, wheeling and other charges as determined in

the Tariff Orders in force. They shall be allowed banking facility, which

shall be on a monthly basis instead of annual basis. The excess energy

injected at the end of each calendar month shall be deemed to have

purchased by the Distribution Licensee of the area where the generator

is situated and shall be paid for at the APPC rate determined by the

Commission from-time-to-time.”

c) Determination of Tariff for grid interactive solar power plants including

rooftop and small solar Photo voltaic power plants:

The Commission had issued a discussion paper on 21st June 2013 and

had held a public hearing in the matter on 4th September 2013. After

duly considering the written and oral submissions of the stakeholders,



the Commission in its Order dated 10th October 2013 has determined

tariff for grid interactive solar power plants including rooftop and small

solar Photo voltaic power plants as follows:

TABLE - 21

Type of Solar Plant Approved Tariff in

Rs./Unit

Solar PV Power Plants 8.40

Solar Thermal Power Plants 10.92

Rooftop and Small Solar PV Plants 9.56

Rooftop and Small Solar PV Plants with 30%

capital subsidy

7.20

This tariff is applicable to solar power generators entering into power

purchase agreements (PPA) on or after 01.04.2013 and upto 31.03.2018

other than those where the tariff is discovered through bidding process.

Further, the Commission has decided not to levy any Wheeling and

Banking charges or Cross Subsidy Surcharge on the Solar generators

who sell electricity on open access within the State. The Commission

has since clarified that, this exemption is available for the period ending

31.03.2018.

d) Fuel Cost Adjustment charges (FAC) on quarterly basis:

In accordance with the provisions of the KERC (Fuel Cost Adjustment

Charges) Regulations 2013 and its amendment, the Commission is

determining the FAC to be levied by the ESCOMs on a quarterly basis.

During the year FY14, the Commission has issued four Orders on FAC as

detailed below:

FAC 1: Order dated 21.06.2013 for the period January to March 2013 to

be billed in July to September, 2013:

The computation of change in fuel costs for the period January to

March 2013 being the last quarter of financial year 2012-13 and in view

of the inconsistency in the claims of variable charges pertaining to RTPS



and NTPC stations, the Commission in its Order dated 21st June 2013, in

exercise of powers conferred under clause 8 of the KERC (Fuel Cost

Adjustment Charges) Regulations 2012, decided to factor the FAC

claims of the period January to March 2013 during the Annual

Performance Review for FY13 after further verification of the claims. The

ESCOMs were directed to include these fuel cost variations in their

applications for Annual Performance Review for FY13, and hence the

proposed collection of FAC for the period July-September 2013 was

deferred.

FAC 2: Order dated 20.09.2013 for the period April to June 2013 to be

billed in October to December, 2013:

The Commission as per the provisions of the KERC (Fuel Cost Adjustment

Charges) Regulations dated 21.03.2013, having recognized the

reduction in fuel cost adjustment charges by 3 paise per unit of sale

and overall increase in the power purchase cost in the first quarter of

FY14, in its Order dated 20th September, 2013, decided to allow

adjustment of the reduction in FAC towards the overall increase in

power purchase cost. As such there was no FAC to be passed on

during the period 1st October, 2013 to 31st December, 2013.

FAC 3: Order dated 23.12. 2013 for the period July to September 2013 to

be billed in January to March, 2014:

The Commission, having recognized the reduction in fuel cost

adjustment charges by 2 paise per unit of sale and the reported overall

increase in the power purchase cost in the second quarter of FY14,

decided to allow adjustment of the reduction in FAC towards the

overall increase in power purchase cost. As such there was no FAC to

be passed on during the period 1st January, 2014 to 31st March, 2014.



FAC 4: Order dated 13.03.2014 for the period October to December,

2013 to be billed in April to June, 2014:

The Commission, having recognized the reduction in fuel cost

adjustment charges by 4 paise per unit of sale and the reported overall

increase in the power purchase cost in the third quarter of FY14,

decided to allow adjustment of the reduction in FAC towards the

overall increase in power purchase cost as per the provisions of the

KERC (Fuel Cost Adjustment Charges) Regulations 2013 as amended on

04.12.2013. As such there was no FAC to be passed on during the

period 1st April, 2014 to 30th June, 2014.

6. Studies conducted by the Commission:

Prudence Check of Capital Expenditure of KPTCL and ESCOMs:

The Commission in its Tariff Orders from FY10 onwards had approved the

capex as proposed by KPTCL and ESCOMs subject to prudence check at

the time of annual performance review for the relevant period.

The Commission had conducted prudence check of capital investments of

KPTCL and ESCOMs for the period from FY10 to FY12 during the Tariff

exercise conducted in FY13 by utilising the services of consultants. The

Commission after examining the report submitted by consultants had

opined that, a more representative sample size of the capital investment

works has to be increased for conducting prudence check and also

decided to bring out uniform guidelines for conducting prudence check in

order to facilitate uniform approach while conducting the prudence

check.

The Commission finalised the guidelines and awarded the work of

Prudence check to the same consultants for carrying out the Capital

investment of KPTCL and ESCOMs for the period of FY10 to FY12.



After considering the report of the consultants, the Commission has

disallowed interest and depreciation charges calculated on the basis of

weighted average interest & weighted average depreciation on the

amount of capex (pertaining to the works which are escalated to the

eligible capex for prudence check) not meeting the requirement of

Prudence norms.

Further, the Commission in its tariff order dated 12th May 2014, has decided

to give one more opportunity to the ESCOMs to furnish additional

information on the works relating to the capital expenditure so disallowed

to prove the prudency of works. Based on the information that has to be

furnished, the Commission would take a decision on modification of

disallowed capital expenditure if required.

7. TECHNICAL ADVISORY GROUP (TAG):

The Technical Advisory Group constituted by the Commission in the

previous year has been continued for the present year also with the

following members to assist the Commission on Technical issues:

1. Sri B.G.Rudrappa Member

Former Chairman,

Karnataka Electricity Board

2. Sri Ramakrishna Member

Former Member (Power System)

Central Electricity Authority

3. Sri H.P. Khincha Member

Former Prof. of Electrical Engg. IISc and

Former Vice Chancellor,

Visvesvaraya Technological University

4. Director (Tech.) KERC Convener



During the year FY14, twelve meetings of TAG were held to discuss the

following subjects:

a) Revision of Standard Wheeling and Banking Agreement:

A meeting of TAG was held for discussing and finalizing the Standard

Wheeling and Banking Agreement and the suggestions to be

incorporated as per the earlier discussions were identified and the final

version of the Agreement was put up to the Commission.

b) Karnataka Electricity Grid Code (KEGC) and Karnataka Electricity

Distribution Code (KEDC):

Eleven meetings of TAG were held to discuss the revision of Karnataka

Electricity Grid Code (KEGC) and Karnataka Electricity Distribution

Code (KEDC) in line with the IEGC 2010 (with latest amendments).

The TAG revised the Planning criteria as per the National Electricity Plan,

Protection issues like, Protection coordination, protection audit,

protection relay settings, Root cause analysis and grid operational

issues such as contingency planning, operational studies and outage

management system, were discussed.

8. Meetings of the Commission

During the year the Commission has held 44 meetings to consider and

decide on various issues pertaining to the power sector. Some of the

important subjects discussed in the Commission’s meetings are:-

1. Financial performance of Distribution companies.

2. Procurement of 1500 MW power on medium term basis through

competitive bidding process under Case-1.



3. Approval of power purchase agreements between generators

and ESCOMs.

4. Sustainability of Biomass based power plants in the State

5. Determination of tariff for grid interactive solar power plants

including rooftop and small solar photovoltaic power plants.

6. Approval of ERC and tariff of KPTCL, ESCOMs and Hukeri RECS.

7. Review of power position in the State for FY14 and projections for

FY15.

8. Variable cost for use of coal during off season in co-generation

power plants.

9. New Regulations and amendments to existing Regulations.

10. Nominations to District Consumer Grievance Redressal Forums.

11. Maintenance of compliance of RPO by obligated entities.

12. Quarterly determination of Fuel Cost Adjustment Charges

recoverable.

13. Guidelines for Prudence check of capital expenditure

14. Discussion papers on various subjects of importance

15. Study reports submitted by Consultants

16. Review of directives issued by the Commission in its Tariff Orders

of KPTCL/ESCOMs.

17. Modifications to Wheeling and Banking agreement

18. Power quality monitoring of ESCOMs

19. Periodical determination of Average Pooled power cost (APPC).



8. ADVISORY COMMITTEE OF THE COMMISSION

8.1 Provisions under the Electricity Act, 2003:

In pursuance of the provisions contained in Section 34 of Karnataka

Electricity Reform Act, 1999 and Section 87 of the Electricity Act, 2003, the

Commission has established a State Level Advisory Committee to advise

the Commission on:

i) major questions of policy.

ii) matters relating to quality, continuity and extent of service provided

by the Licensees.

iii) compliance by Licensees of the conditions and requirement of their

licence.

iv) protection of consumer’s interest.

v) electricity supply and overall standards of performance by utilities.

A List of the present Members of the Advisory Committee is in Annex- 3.

During the year, three meetings of the Advisory committee were held.

In the 38th meeting held on 21st June 2013, discussions were held on

performance of ESCOMs during FY13, review of power supply availability

v/s demand for FY14 and norms for prudence check of capex of

transmission and distribution utilities. The committee observed that, KPCL

plants were recording lower PLF and suggested that a study be

conducted to analyse the performance of KPCL and suggest measures to

improve PLF. The Committee reviewed the status of distribution losses,

distribution transformers failure, feeder segregation works under Niranthara

Jyothi Yojana (NJY) and quality of supply / services by ESCOMs.

In the 39th Meeting held on 20th September,2013 the Committee discussed

the proposal of determining tariff for grid interactive solar power plants



including rooftop and small solar photovoltaic plants. The Committee also

discussed the feasibility of introducing solar water pumping system for IP

sets on off grid mode.

In its 40th meeting held on 30th December, 2013 the Committee discussed

the “Model State Electricity Distribution Management Responsibility Bill

2013”. The committee also reviewed the power position for January –

March, 2014. The comments on the report on “Karnataka’s Power Sector –

Road Map for 2021-22” were also discussed.



9. IMPLEMENTATION OF THE RTI ACT:

Status of applications / appeals received and disposed of during 2013-14

under the Right to Information Act, 2005:

The following is the status of applications/appeals received and disposed

of during 2013-14 under the Right to Information Act, 2005:

TABLE - 22

No. of

applications

received

No. of

applications

disposed

Fee

collected

No. of

appeals

received

No. of

appeals

disposed

48 48 Rs. 4220/- 2 1

The Appellate Authority under the RIGHT TO INFORMATION ACT, 2005 is:

Secretary

Karnataka Electricity Regulatory Commission

9/2, Mahalaxmi Chambers, 7th Floor,

M G Road,

Bangalore 560 001

Phone No. 25320355 Fax No. 25591412

The Public Information Officer under the RTI ACT is:

Assistant Secretary,

Karnataka Electricity Regulatory Commission,

9/2, Mahalaxmi Chambers, 6th floor,

M G Road,

Bangalore 560 001

Phone No. 25320213/14 Fax No. 25591412



10. BUDGET & ACTUAL EXPENDITURE OF THE COMMISSION

GRANTS RECEIVED FROM THE GOVERNMENT DURING FINANCIAL YEAR 2013-14.

The following table shows the details of budget estimates and actual

expenses for 2013-14.

TABLE - 23

(In Rs. Lakhs)

Major Expenditure

Head

Budget

Estimate

Expenditure

for 2013-14

Variation

Establishment expenses 511.32 378.29 -133.03

Office Expenses 230.30 261.80 +31.50

Total 741.62 640.90 -101.53

The State Government provided a grant of Rs.300.00 lakhs, out of which

Rs.290 Lakhs were released to the Commission during 2013-14. The excess

expenditure was met out of annual license / tariff application fee and

other fees / receipts of the Commission during the year.



11. ADMINISTRATION:

The office of the Commission consists of permanent employees besides

officers/officials on deputation and on contract basis. The total working

strength of the Office of the Commission as at the end of the Financial

Year 2013-14 is 51 consisting of:-

a) Permanent Employees 4

b) Officers/Staff on deputation 17

c) Employees on Contract 28

d) Consultants 02

TOTAL 51



12. COMMISSION’S COURT

The Commission generally holds court proceedings on Thursday of every

week besides conducting public hearings from time to time on issues to be

decided by the Commission.

The details of the petitions for resolution of disputes filed before the

Commission during the year including cases taken up suo-moto and their

status are indicated as under:

TABLE – 24

Sl.No. Details of cases No.

1 Cases as on up to 31.03.2013 46

2 Cases filed during FY14 55

3 Cases disposed of during FY14 59 (including 5

cases remanded

by Hon’ble ATE)

4 Cases pending as at the end of the year 47

The Details of Petitions, Complaints, Review Petitions and other cases

disposed of during the period from 1st April 2013 to 31st March 2014 are as

follows:



Sl

no.

Case No. Parties Subject Date of

disposal

1 OP 22/12 JSW Power Trading Co Ltd v PCKL Refund of compensation

illegally deducted

4.4.13

2 OP 45/12 Sri Maruthi Power Gen (India) P

Ltd v MESCOM

Payment 18.4.13

3 Complaint

1/12

Parrys Sugar Industries Ltd v

HESCOM

Non compliance of order 18.4.13

4 OP 45/10 (

on remand)

BESCOM vs J.K.Cement Works Section 11 Offsetting adverse

financial impact

18.4.13

5 OP 35/12(on

remand)

Sri Chamundeshwari Sugars Ltd

vs GoK & others

Termination of PPA 22.11.12/

25.4.13

6 OP 45/11 Global Energy P Ltd vs KPTCL Appointment of substitute

arbitrator

2.5.13

7 OP 14/12 MESCOM v nil Approval of tariff under

section 11

22.5.13

8 OP 15/12 BESCOM vs nil Approval of tariff under

section 11

22.5.13

9 OP 16/12 CESC vs nil Approval of tariff under

section 11

22.5.13

10

OP 25/12 Shree Renuka Sugar Ltd v GoK&

others

Section 11-Offsetting adverse

financial impact

22.5.13

11 OP 29/12 M/s Star Metallics and Power Pvt

Ltd vs GoK & others


financial impact

22.5.13

12 OP 30/12 M/s Shamanur Sugars Ltd vs GoK

& others


financial impact

22.5.13

13 OP 31/12 M/s Himatsingka Seide Ltd vs GoK

& others


financial impact

22.5.13

14 OP 40/12 Ugar Sugar Works Ltd vs GoK &

others


financial impact

22.5.13

15 RP 2/13 HESCOM vs Parrys Sugars Ltd Review of the order in OP

46/12 dated 7.2.13

13.6.13

16 OP 23/12 JSW Power Trading Co Ltd v PCKL Payment 13.6.13

17 OP 28/11 Jasper energy P Ltd V KPTCL &

others

Termination of PPA 7.6.12/

13.6.13

18 OP 5/13 Hindustan Zinc Ltd vs HESCOM Payment of interest 20.6.13

19 OP 16/13 Reid & Taylor (India) Ltd vs KPTCL

& another

Construction of transmission

line

20.6.13

20 Suomotu

case 1/13

Swastik Construction Services vs

HESCOM

Termination of MoU 21.6.13

21 Complaint

4/13

BMM Ispat Ltd vs GESCOM &

others

Non compliance of the order

in OP 32/12

4.7.13

22 Complaint

8/13

K Mohan & Co (Exports) Pvt Ltd vs

AEE s-10 sub division, BESCOM

Non implementation of order

of CGRF

4.7.13

23 Complaint

1/13

NSL Sugars Ltd vs KPTCL Non compliance of order in

RP 7 & 8/2010

4.7.13

24 OP 19/13 Lakshmi Jalavidyut (Krishna) Ltd

vs KPTCL & others

Extension of W&B order dated

11.7.08

11.7.13

25 OP 42/11 SathavahanaIspat Ltd vs KPTCL Evacuation approval 8.8.13

26 RP 1/13 BESCOM & others vs GMR Energy

Ltd & others

Review of the order in OP

47/11 dated 30.11.12

8.8.13

27 OP 37/12 MESCOM v AMR Power P Ltd Validity of PPA 14.8.13



28 RP 8/12 Srinivasa Gayatri Resource

Recovery Ltd vs BESCOM &

others

Review of order in OP 14/11 18.9.13

29 OP 12/13 Shree Renuka Sugars Ltd

vsHESCOM

Payment at 10th year rate 18.9.13

30 OP 3/13 Indowind Energy Pvt Ltd vs

BESCOM

Unauthorized deductions reg:

LC charges

19.9.13

31 OP 4/13 Indowind Energy Pvt Ltd vs

BESCOM

Unauthorized deductions reg:

LC charges

19.9.13

32 Complaint

3/13

Ugar Sugar Works Ltd vs KPTCL &

another

Non compliance of the order

in OP 4/11

1.10.13

33 OP 19/12 Indian wind Energy Association vs

BESCOM & others

Tariff for wind projects 10.10.13

34 OP 36/12 Indian Wind Turbine

Manufacturing Association v

BESCOM & others


35 OP 43/12 Indian Wind Power Association v

GoK& others


36 OP 49/12 The Tata Power Company Ltd vs

PCKL & others

Refund of MAT 10.10.13/

12.12.13

37 B/06/09(On

remand)

FKCCI vs KPTCL & others Tariff 17.10.13

38 RP 6/12 BESCOM vs Srinivasa Gayatri

Resource Recovery Ltd & others

Review of order in OP 14/11 17.10.13

39 RP 4/13 VRL Logistics vs HESCOM Review of the order in OP

11/09

17.10.13

40 RP 3/13 PCKL & others vs Himatsingka

Seide Ltd and others

Review of the order dated

14.2.13 in OP Nos. 40 & 41/10

17.10.13

41 Application

1/13 in OP

32/03 & RP

4/04

Arpee Electrical Pvt Ltd vs

BESCOM

Recalling order dated 8.1.04 17.10.13

42 OP 7/13 GESCOM vs Ravikiran Power

Projects Pvt Ltd

Validity of PPA 17.10.13

43 OP 12/12 Ugar Sugar Works Ltd v KPTCL Payment 17.10.13

44 OP 10/13 JSW Steel Ltd vs KPTCL Applicability of RPO to

captive co-gen plants

17.10.13

45 OP 11/13 JSW Steel Ltd vs KPTCL Applicability of RPO to

captive co-gen plants

17.10.13

46 OP 6/13 BESCOM vs Rithwik energy

Generation Pvt Ltd

Validity of PPA 17.10.13

47 Suomotu

case no.

3/13

Against all ESCOMs Non compliance of directives

reg: DSM and energy

efficiency

5.12.13

48 Suomotu

case no.

4/13


reg:energy audit, metering of

DTCs, regularization of

unauthorized IP sets

5.12.13

49 Suomotu

case no.

5/13


reg: intra state ABT,

segregation of distribution

and retail supply business and

5.12.13



MIS

50 Suomotu

case no.

6/13


reg: quality and reliability of

power supply and prevention

of electrical accidents

5.12.13

51 Suomotu

case no.

7/13


reg: life line supply,

responsive-ness to consumers

and measures to improve

financial viability

5.12.13

52 OP 21/12 (

on remand)

Narayanpur Power Company vs

GESCOM

Termination of PPA 12.12.13

53 Suomotu

case 2/13

Anil Kalgi vs BESCOM & another Unauthorised supply of power

to ‘Platinum city’ apartments

13.1.14

54 Suomotu

case 8/13

Pointec Pens & Energy Ltd vs

KPTCL & others

Wheeling and banking 13.1.14

55 RP 7/13 Arpee Electrical Pvt Ltd vs

BESCOM

Review of order on

application no. 1/13 in OP

32/03 and RP 1/04

23.1.04

56 OP 27/13 Athani Farmers Sugar Factory Ltd

vs HESCOM & another

Payment for energy wheeled 23.1.14

57

OP 22/13

Sunvik Steels Pvt Ltd vs BESCOM Levy of reactive energy

charges

26.2.14

58 OP 28/13 Hotel Leela Venture Ltd vs SLDC

& others

Credit of wheeled energy 6.3.14

59 Suomotu

1/14

ReNew Wind Energy P Ltd vs

SLDC & others

Delay in execution of W & B

agreement

12.3.14



13. ACTIVITIES OF THE OMBUDSMAN

During the year under review i.e. 2013-14, 24 cases were registered and 8

cases were brought forward from the previous fiscal year, taking the tally

to 32 cases. Of these, the Electricity Ombudsman has heard and disposed

of 28 cases during the year, leaving a balance of 4 cases.

The main issues dealt in the cases disposed of are as under:

1. Short Claims due to erroneous reading of meter.

2. Faulty reading of TOD meter.

3. Change of tariff category.

4. Claiming excess amounts despite production of IT/BT Certificate

5. Levying of Fixed and Energy Charges for excess duration of time.

6. Imposing additional claims on the ground of slow recording of meter.

7. Taking flawed decision based on irrelevant reports.

8. Levying of wrong rates of interest.

9. Claiming of compensation for not complying with the Standards of

Performance.

10. Not adhering to the Conditions of Supply of Electricity of Distribution

Licensees in the State of Karnataka.

Abstract of the cases registered and disposed of by the Electricity

Ombudsman are as under:

TABLE – 25

Name

Complaints

Brought Forward

From FY 2012-13

Complaints

Registered

during FY

2013-14

Total

Complaints

Disposed of

during FY

2013-14

Balance

As on

31.03.14

Electricity

Ombudsman

08

24

32

28

04



Establishment of Additional Consumer Grievance Redressal Forums

During 2013-14, the Commission, vide Notification No.KERC/D/37/13,

Bangalore dated 10.05.2013 brought amendments to KERC (CGRF and

Ombudsman) (Second Amendment) Regulations, 2013. The amendments

provide for creation of CGRF in each Revenue District.

As per the amendment, “every Distribution Licensee shall establish in every

Revenue District of its jurisdiction a Forum to be called Consumer

Grievance Redressal Forum in the manner specified by the Regulations.”

Under the amendment, CGRF is chaired by an officer of the Licensee not

below the rank of Superintending Engineer and one Member shall be an

officer of the Licensee not below the rank of Executive Engineer. One

Member shall be nominated by the KERC from among the persons who

have experience or knowledge of electricity sector/consumer affairs.

In pursuance of the Notification dated 10.05.2013, all the ESCOMs in the

State have designated the Chairmen and Members to the CGRFs in their

jurisdiction. KERC nominated Member from among persons who have

experience or knowledge of electricity sector/consumer affairs to all the

newly created CGRFs in the State.

CGRFs created under the KERC (CGRF and Ombudsman) (Second

Amendment) Regulations, 2013 became operational during the year 2013-

14.

In order to facilitate the newly appointed Chairmen and Members of CGRF

to function effectively, a one-day State level Orientation Programme was

organized by BESCOM in Bangalore under the guidance of the

Commission.



In the workshop, papers were presented by experts on the aspects of

Electricity Act, 2003 with special reference to consumer protection

provisions and to the conduct of proceedings of CGRF, passing of orders

etc. More than 100 participants attended the workshop.

In order to create consumer awareness regarding the availability of the

forum of CGRF in each Revenue District, a publicity campaign was

launched by the ESCOMs under the aegis of Commission. During the

campaign, ESCOMs have brought out advertisements in the National and

Regional Newspapers informing the consumers on availability of forum of

CGRF and mode or filing applications to get their grievance redressed

expeditiously were explained. The advertisements were released once in a

fortnight for a period of 3 months.

These measures have brought enhanced awareness amongst the

electricity consumers which is evident from the rising number of complaints

received in several districts, which was not the case earlier. Moreover, a

consumer needs to travel no further than his district head quarters for

approaching the CGRF and seek redressal of his grievance.



14. PROGRAMME FOR THE YEAR AHEAD

The following activities are in the plan of action envisaged for FY15:

1. Grid Code:

The Consultants (Tech.) have taken up finalization of the amendments

to the KERC (Grid Code) in line with the Indian Electricity Grid Code

issued by CERC. The subject has also been actively discussed in the

Technical Advisory Group. On approval of the Commission, the draft

would be published for seeking comments of stakeholders and upon

receipt of comments, the Commission will finalise and issue the

amended KERC (Grid Code).

2. Tariff for Renewable Sources:

The validity of the existing Tariff for renewable sources namely Mini

Hydel, Bio-mass and Co-generation issued on 11th December, 2009,

would be expiring on 31st December, 2014. Hence, during the year it is

proposed to float a discussion paper suggesting revision of existing tariff

for these renewable sources of energy. After receiving comments from

the stakeholders, the Commission will finalize the applicable tariff for

these categories of renewable sources of energy.

3. KERC (Terms & Conditions for Determination of Generation Tariff)

Regulations, 2014:

The CERC has revised the generation Tariff Regulations applicable to

Central Generating Stations for the period 2015-19. The existing

Regulations of KERC for determination of Tariff for generating stations in

the State which was in line with the earlier CERC Regulations for the

period 2009-14 need to be revised. During the year, the Commission

would take up revision of existing KERC Regulations in the matter.



4. Standard Format for NCE PPA and Agreement for W&B:

The Commission has already conducted a public hearing after floating

draft standard formats of Wheeling and Banking agreements

applicable to REC and non REC projects. During the year, the

Commission will finalise the standard formats of Wheeling and Banking

agreement.

The Commission also proposes to float a revised draft standard format

of PPAs to be executed in respect of Renewable Energy generators

with the distribution licensees. The same would be finalised after

seeking comments of all the stakeholders.

5. Perspective Plan of KPTCL:

KPTCL has furnished the perspective plan for the period FY13 to FY22

(Twelfth & Thirteenth Plan period). The perspective plan considers the

strengthening & expansion of transmission system with reference to load

forecast of the ESCOMs and the proposed addition in power

generation at different locations. The Commission will review the

proposal of KPTCL.

6. Addressing Transmission constraints in the State:

The ESCOMs have identified transmission constraints causing difficulties

and interruption in power supply to the consumers. In this regard, the

Commission would review such transmission constraints of KPTCL and

would be directing KPTCL to initiate action for removal of such

constraints and smooth flow of electricity.



7. Approval of PPA of KPCL’s RTPS-8, BTPS-2 and KPC Hydro (earlier VVNL)

Stations :

KPCL has filed petitions before the Commission for determination of

tariff and for approval of PPAs of RTPS unit 8, BTPS Unit 2 and KPCL hydro

stations which were earlier under VVNL and subsequently transferred to

KPCL. During the year, the Commission would be examining these

petitions.

8. APR for FY14 and revised ARR & Tariff for FY16 for KPTCL and ESCOMs:

The Commission is required to take up Annual Performance Review of

KPTCL and ESCOMs for FY14 along with revision of ARR and Tariff for

FY16. As per the Regulations, the KPTCL / ESCOMs are required to file

their applications for APR and ARR 120 days before the

commencement of the next financial year. The Commission will hold

public hearing in the matter and issue Tariff Orders before 31st March,

2015.

9. Prudence check of Capital investment of KPTCL and ESCOMs for FY13

and FY14:

The Commission in its Tariff Order dated 12th May, 2014 has carried out

Annual Performance Review of KPTCL / ESCOMs for FY13. The

Commission has allowed interest on loans and depreciation as per the

Audited Accounts subject to prudence check of capital expenditure

for FY13. Further, the Commission would be taking up Annual

Performance Review for FY14. Hence, during the year, the Commission

will institute a prudence check assessment of capital investments made

by KPTCL / ESCOMs during FY13 and FY14. Based on the findings, the

Commission will review the allowable interest on loans and

depreciation for FY13 and FY14.



10. Approval of PPA between HESCOM and HRECS:

HRECS is buying its power from HESCOM. In this regard, HRECS has

submitted its PPA with HESCOM for approval of the Commission. The

Commission would be examining the proposals.

11. Wheeling and Banking charges for Solar power generators:

The Commission has issued a discussion paper on 7th July 2014 inviting

comments / suggestions /views from interested persons. On receipt of

the same, the Commission would pass an appropriate Order in the

matter during the year.

12. Review of fuel cost for existing Biomass fuel plants:

The Commission has floated a discussion paper on review of fuel cost

for existing Biomass fuel plants inviting comments / suggestions /views

from interested persons. On receipt of the same, the Commission would

pass an appropriate Order in the matter during the year.

13. Review of performance of ESCOMs:

With a view to improve services to the consumers, the Commission

decides to continue to review the performance of the ESCOMs on

parameters like quality of supply, interruptions, accidents, providing

new services, billing and collection, replacement of faulty meters etc.

In this regard, the Commission would hold quarterly meetings with the

ESCOMs and review their performance so as to advise taking corrective

measures wherever necessary.

14. Review of Directives:

The Commission has issued various directives to the transmission and

distribution licensees on matters related to quality of power supply,



demand side management, services to consumers, prevention of

electrical accidents, energy audit, implementation of Niranthara Jyothi

Yojana and High Voltage Distribution System.

During the year, the Commission on a regular basis would be reviewing

the compliance of the above directives issued by the Commission.



15. USE OF KANNADA IN THE COMMISSION’s ADMINISTRATION:

Kannada is used as a medium of communication in the office of the

Commission. The Commission is in the process of bringing new

compendium of Regulations in Kannada along with their English versions.

The Annual Report is also published by the Commission in Kannada and

English.

All notices of public interest are being issued in Kannada language and

Kannada newspapers. The Commission is making a continuous and

sustained effort for implementation of Kannada as the official language.



ORGANISATION CHART



Annexure – 2

The detailed list of the PPAs approved during the year

Name of the

Firm

Capacity

in MW

Type

of the

project

Location of

the Project

Date of

approval &

duration of

PPA

Name of

ESCOM

with

whom

PPA is

entered

Whether

CGU/SGU/IPP/

NCE/ Others

Date of

Agreement

M/s Welspun

Solar

Kannada Pvt

Ltd

7.00 Solar

PV

Chitrdurga

District

Karnataka

State

04.04.2013 MESCOM Solar 27.07.2012

M/S Sai Sudhir

Energy

(Chitradurga)

Private Ltd

10.00 Solar

PV CHITRRDURGA 07.06.2013 CESC Solar 30.08.2012

M/S Swastik

Construction

Services)

0.80 Wind

Belvalakoppa

Village,

Shiggaon

taluk , Haveri

District

31.12.2013 HESCOM NCE 29.11.2013

M/s Subhash

Kabini Power

corporation

Ltd

20 Mini

Hydel

HD Kote,

Mysore Distrcit

07.10.2013 20

years MESCOM NCE 20.08.2010

M/S. Enercon

Wind Farms

India Ltd

(supplemental

PPA change

of name to

M/s Wind

World Wind

Farms (India)

Ltd dated

07.01.2014)

8.40 Wind

Kennedlu and

Nadipura

Villages,

Jogimatti

Wind Zone,

Chitradurga

District

28.01.2014/20

Years BESCOM NCE 23.11.2001/24.10.2007

M/S. Bhoruka

Power

Corporation

Ltd.

49.6 Wind

Bastwad

Birnal,

Byakud,

Savasuddi

and

Khanadal

Village of

Belgaum

District

14.03.2014 HESCOM NCE 13.02.2014

M/s Murga

Rajendra Oil

Mills Pvt Ltd.

0.85 Wind

Naghral

Village of

Chikkod taluk,

Belgaum

District

19.03.2014 HESCOM NCE 17.03.2014

M/S. Bhoruka

Power

Corporation

Ltd.

10.00 Solar

PV

Rangenahalli,

Sidlayanakote

and Biderekeri

village, Hiriyur

taluk

17.02.2014 BESCOM NCE 03.02.2014

M/s Pinpoint

Energy K1 Pvt

Ltd

5 Solar

PV

Bagepalli ,

Chickballapur

District

28.02.2014 BESCOM NCE 06.02.2014

M/s ESD

Builders and

Developers

Pvt Ltd

3 Solar

PV

Jinkapaali

village

Bagepalli ,

Chickballapur

28.02.2014 BESCOM NCE 13.02.2014



District

M/s Clean

Solar power

Pvt Ltd. (Hero

Energies)

10 Solar

PV

Ramjogihalli

Village

Chitrdurga

District

13.03.2014 HESCOM NCE 19.02.2014

Madhav Solar

(Karnataka)

Pvt Ltd-

Project-1

5

Solar

Bevoor

Village,

Yelgurga

Taluk, Koppal

District

25.02.2014 CESC NCE

25.02.2014

Madhav Solar

(Karnataka)

Pvt Ltd-

Project-2

5

Solar

Bevoor

Village,

Yelgurga

Taluk, Koppal

District

25.02.2014 CESC NCE

25.02.2014

Annexure – 3

List of members of State Advisory Committee, KERC

1. The Managing Director

Karnataka Power Transmission

Corporation. Ltd., Cauvery Bhavan,

KempeGowda Road,

BANGALORE -560 009

Ph : 080-22214342/22244556


Karnataka Power Corporation Ltd.

Shakti Bhavan, Race Course Road,

BANGALORE – 560 001

Ph: 080 –22255606 /22204153

3. Sri B. SathyanarayanaUdupa

Secretary, BharatiyaKisanSangha

1st Floor, Vasuki Towers

Near Taluk Office,

UDUPI

Ph : 0820 –2536450 /9448843888

4. Prof. H.P.Khincha

Former Vice Chancellor of

Vishweshwaraiah Technological

University, 11/1, 4th Main,

Chamarajpet,

BANGALORE – 560 018.

Ph: 22932361 (O) / 9845010476

5. President,

KASSIA, No.2/106, 17th Cross

Magadi Chord Road, Vijayanagar,


Ph: 28362178(O), 23493353 ( R),

6. Sri. A Raja Rao,

471, 22nd Cross,

Banashankari II Stage,

BANGALORE- 560 070.

Ph: 26719897( R)

7. The Secretary to Government

Dept. of Food & Civil Supplies &

Consumer Affairs, M.S. Building


Ph:22259024


BESCOM

K.R.Circle


Ph: 22354929


GESCOM

Station Road

GULBARGA -585 101

10. Sri B.G.Rudrappa

Former Chairman –KEB

278/2,9th ‘A’ Main Road, II Block,

Jayanagar, BANGALORE-560 011

11. Dr. R .S .Deshpande,

No. 405, 5th Main,

Kendra Upadhyayara Sangha

12. Dr. S.L.Rao,

D1, Chartered Cottage,

Langford Road



Layout, Nagarabhavi Post,


Ph:23215555; (M)9845436096


(M) 9343198450 (R) 080-22275132

13. The President,

Karnatak Chamber of Commerce &

Industry,

G. Mahadevappa Karnataka

Chamber Building, J.C. Nagar,

HUBLI- 580 020.

Ph: 0836-2218234/5

14. President

Confederation of Indian Industry

Karnataka State Branch

1086, 12th Main HAL 2nd Stage,

Indiranagar

BANGALORE – 560 008 (Ph. 25276544)

15. Sri V Ramakrishna

No. 490, 10th cross,

Sadashivanagar,

BANGALORE - 560 080

Ph: 9008344948

16. Director General,

Central Power Research Institute,

(CPRI), Prof. Sir. C. V. Raman Road,

Sadashivanagar,

BANGALORE–560 080

(M) 9448362457

Invitees

The Additional Chief Secretary to

Government,

Department of Energy,

Vikasa Soudha,


Ph: 22252373

The Managing Director

MESCOM, Paradigm Plaza

A.B.Shetty Circle

MANGALORE –575 001

0824-2444300

The Chief Engineer,

Karnataka State Load Despatch Centre,

KPTCL, Race Course Road,

BANGALORE -560 009.

Ph. 9448471411; 22267034


CESC, No.927, L.J. Avenue

New Kantharaja Urs Road,

Saraswathipuram

MYSORE – 570 009

Ph: 0821 –2417101

Director Technical,

Karnataka Power Transmission

Corporation Ltd.

Cauvery Bhavan, Kempe Gowda Road,

BANGALORE -560 009


HESCOM

P B Road, Navanagar,

HUBLI – 580 025

Ph: 0836-2322771; 9448277614

Managing Director,

Karnataka Renewable Energy

Development Ltd. (KREDL),# 39,

"Shanthi Gruha", Palace Road,

BANGALORE - 560 001

Ph:080- 22207851/ 22208109.

Vice President, BCIC

And Chairman, Energy, Environment

and Water Expert Committee,

Bangalore Chamber of Industry

and Commerce,

No. 3 / 4, 3rd floor, C Block,

Unity Buildings, J C Road,

BANGALORE– 560 002.

Ph: 080-22223321

Documents

15 Annual Report 2013-14 - karunadu