Annexe - 4 Status Report on Compliance with Directives Electricity Regulatory Commission Tariff Order 2003 Annexe-4 : Compliance with Directives Page 318 Annexe - 4 Status Report on

Karnataka Electricity Regulatory Commission Tariff Order 2003

Annexe-4 : Compliance with Directives Page 318

Annexe - 4

Status Report on Compliance with Directives

The directives earlier given by the Commission were addressed to KPTCL in its

capacity both as Transmission Licensee as well as Supply (Bulk & Retail) Licensee.

Subsequent to Tariff Order 2002, the Distribution & Retail Supply Business has now

been vested with the ESCOMs. Some of the Directives pertain exclusively to the

Transmission Licensee while others pertain to the Distribution & Retail Supply

Licensees. There are some Directives that are to be complied with by both KPTCL as

well as the ESCOMs. The following analysis compliance in this background.

1.0 Management Information System

1.1 Summary of Directive as in Tariff Order 2000 (page No. 145)

The KPTCL shall improve its management information system in the next filing to give

greater details and explain the basis for all the projections indicating the sources of

data and the method of estimating projected values.

1.2 Gist of Comments of KERC in Tariff order 2002 (Page 32)

The Commission concluded that the pace of computerization till then had been

very slow. The Commission identified certain functionalities out of the several that

are included in the computerization modules as being important for the work of the

Commission and asked KPTCL to commit itself to specific dates for their

implementation. Such dates had been specified in a few cases and were yet to be

committed in other cases. The Commission said that it would continuously follow up

with the Licensee on this matter.

1.3 Reply of KPTCL in the Current filing:

1. The work is entrusted to the ISP consultants M/s PWC. On transmission input

formats, draft is yet to be finalised by M/s PWC. The MIS is being developed to

capture information on issues like financial impact of both the Bulk Supply Tariff and

the various power purchase agreements. The development of MIS is in ToR of ISP

consultants and the consultants have been requested to expedite the report within

March 03.

2. The status of other modules is as follows:

i) Maintenance (MNS): 220KV Yerandanahally station is selected as pilot site. The

module is tested and some minor modifications are requested with TCS. The module

will be implemented in Yerandanahally shortly.



ii) Project Management (PMS): Testing of the module at pilot site in CEE

(Transmission), Bangalore is in progress. Certain changes are being requested, by

Chief Engineer Electricity (Transmission) to adopt to field conditions. The

implementation will be taken up after testing.

iii) Material Management (MMS): Testing of Stores sub module at pilot site in East

Division stores is completed. The package is running in parallel with manual system.

The purchase sub module is under testing and would be completed by 30th

November 2002. After this, testing of scrap sub module will be taken up. The

complete roll out plan is planned to be completed by March 2003.

iv) Personnel & Pay Roll (PPR): Testing at pilot site in Central Division is under

progress. It is likely to be completed by end of November 2002. Certain changes

have to be made by TCS.

v) Finance & Accounting (FAS): The testing of FAS module is yet to be started as

implementation of other modules is being pursued. The testing will be taken up

shortly.

1.4 Replies of ESCOMs:

1.4.1 Reply of BESCOM

1. Billing and collection software prepared by M/s. TCS is being implemented at 39

urban sub-divisions and 13 rural sub-divisions of Bangalore district. Reports such as

Bill generation status, Number of MNR installations, Number of DC, Door lock

installations, abnormal & subnormal consumption, All cash counter -related reports,

Ledger-wise consumption reports, Disconnection and Reconnection lists, Days

demand and collection Tariff wise, Rebate provided for installations with solar water

heater facilities are being generated.

2. Bids for outsourcing the Data Base administration and Data warehousing is under

evaluation.

3. Software regarding payroll management and Material Management is being

tested at Pilot sites by KPTCL. Maintenance Module and Finance Modules will be

provided by KPTCL.

1.4.2 Reply of MESCOM

1. MESCOM commenced its operations from June 1, 2002 and till then preparatory

efforts had been initiated in implementing the Billing & Collection module of TCS.

MESCOM is acutely aware that a strong and robust monitoring system in

conjunction with a performance management system is extremely important for

improving efficiency, improving performance and enhancing consumer service.



Such a system is extremely onerous to implement without computerisation of the

basic processes. Therefore, roll out of the B&C package in Mysore and Mangalore

divisions, closely followed by Udupi and Mandya, has been taken up at a high

priority. The action plan for B&C module rollout in these divisions is as below:

MIS Roll out Plan

Division Data Entry

& Validation

Generation of

Pilot Bills

Switchover

from

Manual Bills to

Computer Bills

Plan for

Manpower

redeployment

Mysore Completed In progress Jul-03 Oct -03

Mangalore Dec-02 Jan-03 Aug-03 Nov-03

Udupi Mar-03 Apr-03 Nov-03 Feb-04

Mandya Mar-03 Apr-03 Nov-03 Feb-04

2. We intend to put in place a robust and flexible system that would permit

meaningful analysis by the management for evolving business strategies and to

comply with regulatory requirements. In respect of Mysore division, the trial bills

have been generated and the first copy of all computerized bills is being distributed

among customers starting 1st November, 02. In respect of Mangalore, the

consumer database is being created. Computerized bill processing would be

undertaken soon. A workshop had been organized in Mangalore where the

Computer Centre Personnel from KPTCL familiarized the Field Officers viz., AEEs and

AAOs to familiarize them with the computerization of B&C software. A High Level

Team of MESCOM consisting of MD, DT and other Officers visited BSES Mumbai and

studied the system functioning there. Preliminary correspondence with BSES has

been taken up to assist MESCOM for setting up similar system and totally

implementing computerized billing. These initiatives and others would be continued

to take up computerised billing and collection system in the urban areas and

thereafter in rural areas.

3. Finalisation of New MIS Design: The MIS submitted by ISP after rationalizing the

131existing formats was reviewed. ISP Consultants were requested to present to the

field officers the revised MIS on the 4-5th October. Detailed review of the revised

MIS has been undertaken thereafter and performance measure is being finalized

for Management Review. On the MIS, several suggestions have been made and

detailed implementation requirements have been identified. For instance to

introduce slab-wise analysis, changes to the DCB reporting format from the sub-

division are required. The Sub-Division will be required to compile slab-wise

consumption while reporting the Demand Collection and Balance. ISP Consultants

also visited Udupi division to draw out other implementation issues so that key

regulatory information requirements can be met and a prioritised plan of

implementing the revised MIS can be developed. MESCOM has finalized plans to



implement the Revised MIS at a pilot location in March 2003 and rollout in the other

sub-division after a 2-month implementation cycle.

4. In the meantime, action has already been initiated to standardize reporting

formats, use of email to receive periodicals reports, and data compilation and

collation being done with the mailed in data leading to faster compilation of

reports, particularly for DCB reports. The monthly DCB figures are now available by

the 10th of the month at the corporate level, and exception reports generated and

sent to the field units by the different revenue monitoring cells to push them into

remedial action. Automatic compilation of data at corporate level with

simultaneous entry of data at the divisions is being taken up with the involvement of

an experienced private agency. MESCOM plans to set-up a MIS Cell within the

Corporate Headquarter, which will receive all the MIS reports and will carry out the

analysis centrally. Exception reports on pre-defined triggers will be generated for

Management action and furnished to the field office. By introducing such a

scheme, we expect to improve availability of MIS for regulatory oversight and to

relieve the field offices from the onerous task of compiling information formats.

5. MESCOM is also working on strategy of outsourcing the billing activities on a pilot

basis in areas where there is dearth of meter readers and meter reading is difficult

due to logistic reasons. This strategy of outsourcing would be finalised by March

2003. Discussions have been held at various levels on working out the details and 20

of the 74 sub-divisions have been identified for outsourcing of the meter reading

work, which is expected to lead to better efficiencies in the billing and thereby in

revenue collection.

6. While outsourcing, strict requirements on generating MIS for the sub-division will

be enforced, which will greatly improve the information quality.

7. Training of manpower: We have identified manpower to be given reorientation

training for attitudinal change to service the consumers better. Proposal has been

sent to the BSES Institute. Another proposal is also taken up to train some staff in

Computer operations, for which APTECH as an agency has been identified.

8. Financing Computerization Projects: We are preparing a proposal to approach

PFC for funding the computerization projects. CPRI has been contacted for assisting

in identifying projects suitable for the needs of the MESCOM.

1.4.3 Reply of HESCOM

1. A Management Information System Cell has been created with CEE, HESCOM as

the Chairman of the Cell, DGM, Corporate Office of HESCOM as the Convener of

the Cell and all the EEEs at HESCOM’s Corporate Office as its members.

Computerisation of collection is started and billing will be started shortly at

Belgaum, Dharwad and Hubli.



1.4.4 Reply of GESCOM

1. GESCOM is planning a two-pronged strategy for computerization of its billing

activity:

(1) To introduce the in-house computerized system of billing and collection plan in

select divisions. GESCOM plans to computerise five Divisions namely Bidar, Koppal,

Raichur, Bellary and Gulbarga for billing and collection. This process shall be carried

out in three steps.

The first is to enter data into specified formats, which in itself requires considerable

effort and time. This will be followed by rectification and verification of the data.

The final introduction and implementation is expected around January 1, 2003. The

pilot implementation shall be made in the towns of Bellary, Bidar, Raichur,

Gangavati and Yadgir. Currently the GESCOM is in the first stage of the process.

(2) To outsource billing activities on a pilot basis

To initiate the process GESCOM has also called for bids from organisations

interested in providing packages for implementing computerizing billings and

revenue management information system in CSD-1, Gulbarga Sub-Division. It is

expected that this pilot computerization project could be implemented by March

2003. Based on the experience from pilot implementation, the process would be

extended to other regions after evaluating the cost and benefit of the

implementation.

2. GESCOM has also taken steps to ensure that its own employees are skilled and

equipped with basic computer skills. Training initiatives has been taken up and

employees of Bellary Urban Sub-divisions have been trained on computer usage in

October 2002. There is a program to train 150 personnel in basic computers skills

and billing and collection software with the assistance of APTECH.

3. GESCOM is committed to improving its MIS and would like to assure the Hon’ble

Commission that this work is being carried out on a priority basis. However, given

the fact that the existing systems are particularly inadequate, it would require

significant effort, time and resources to be able to reach the expected level.

1. 5 Comments of KERC

1.The Commission notes that there are two aspects covered under MIS. One is the

development of MIS by PWC and the other is the application modules developed

by TCS.



2. With respect to the former, KPTCL has replied that the mandate to develop the

transmission MIS is in the terms of reference with ISP consultants and PWC has been

requested to expedite report within March 03.

It is noted that in the earlier replies furnished to the Commission, KPTCL had

identified 131 formats out of which 19 were exclusively covering Generation and

Transmission. In order to minimise the number of formats, PWC was entrusted to

prepare MIS strategy and the MIS implementation was to be effective from 1st June

2002 as committed by KPTCL in Tariff Order 2002. Further the dates have been

revised as per the action plan of GOK as per which PWC had to submit

implementation plan within 45 days from reckoned from 14th June 02. However in

the current reply it is stated that the PWC report will be available in March –03 and

no commitment is made for implementation. The Commission notes that the

implementation dates are being changed frequently indicating the lack of

commitment in MIS implementation.

3. Regarding the TCS modules, the Commission had several meetings with

KPTCL/BESCOM & TCS officials as a follow up action. The Commission has noted

that the implementation schedule has been changed by KPTCL frequently without

any valid reasons. The Commitments made by KPTCL on various occasions on

various modules excluding Billing & Collection software [BNC is discussed in the

relevant section of ESCOMs] is indicated in the table below:

Letter/order

date

PMS module MNS module MMS

module

FRS

module

PPR

module

Tariff Order

2002

15-7-02 15-7-02 15-7-02 15-3-02 15-7-02

No. KPTCL/B-

36/4539/4015

dated 11-3-02

January

2003

onwards

after pilot

testing

January 03

onwards

after pilot

testing

- - -

17-6-02 report

on

“arrangements

on formation

of NEW

DISCOMs.

Under

testing

Delivered to

BESCOM for

implementa

tion

Under

testing

Under

testing

Under

testing

27-6-02

meeting on

MIS

December

2002

December

2002

December

2002

Decem

ber

2002

Decembe

r 2002



Letter no.

KPTCL/B-

36/2001-

2002/MIS/1049

dated 4-7-02

30-10-02

testing will

be

completed

15-9-02

testing will

be

completed

30-12-02 15-11-02

testing

will be

complet

ed

30-11-02

29-7-02

meeting on

MIS

Testing will

be

Completed

by the end

of Sept-02

Testing will

be

completed

by 10-8-02

Successfully

tested &

ready for

implement

ation

6-9-02 meeting

on MIS

Testing

Completed

Testing

Completed

Testing

Completed

- -

ERC FY04 Testing in

progress

after

modification

Ready for

implementa

tion

Only stores

sub module

tested.

Other

modules

will be

tested

latest by

Nov-02.

Testing

yet to

be

done

Testing

will be

Complete

d latest

by Nov-02

4. It is noted that the schedules furnished for the implementation have been

frequently changed and are inconsistent. Further, in the Advisory Committee

meeting held on 29-1-03, KPTCL has informed that agreement with TCS has been

terminated. In view of the above the Commission opines that none of the modules

envisaged by KPTCL has fructified and the entire computerization program has

perhaps become infructuous. A lot of time and money has been spent since 1996

on software development with TCS. The Commission is not yet aware of the

alternatives that are worked by KPTCL.

5. The Commission has noted that as per the GOK action plan furnished to KERC

vide letter dated 18-6-02, KPTCL had to Completely test all the modules and deliver

to the ESCOMs for implementation. Except for Billing & Collection (BNC) package

none of the other packages are implemented. The status of other packages has

been already discussed in the relevant section of KPTCL’s MIS. In view of the

contract with TCS being terminated, the alternative action plan envisaged has to

be to be provided to the Commission.

6. The Commission notes the efforts initiated by ESCOMs with respect to

Computerisation & MIS. The Commission does not wish to comment on the specifics

of the Action Plan worked out by the ESCOMs in this regard, but would keep the

progress under continues review.



2.0 Energy Audit.

2.1 Summery of Directives as in Tariff Order 2000 (Page No. 217)

These covered the planning and implementation of metering in KPTCL grid system

voltage wise, reduction of transmission and distribution losses, creation of

responsibility centres for energy audit, a scientific procedure for estimation of IP set

consumption etc.

2.2 Comments of KERC in Tariff Order 2002 (page No. 34)

The Commission noted that compliance was very delayed, without any satisfactory

explanations. KPTCL stated that the metering of the KPTCL grid system voltage level

wise would be completed by January 03. Commercial losses were reportedly being

reviewed regularly at RBC meetings. The distribution losses in 46 towns and cities

observed to be high and the Commission concluded that there was no substantial

compliance on this directive. Regarding DC/MNR and sealing of meters the

Commission noted the increase in numbers from the ones in March 2000. Further the

Commission observed that sealing of meters was pending for a long time.

Regarding the distribution losses the Commission observed that even though the

Transmission losses decreased there was increase in distribution losses.

2.3 Reply of KPTCL in the current filing

Metering in Transmission system of KPTCL at 400 KV, 220 KV and 11 KV Banks is in

place. The CTs & PTs required for metering at 33 KV level are being installed and the

completion of the work is fixed as March 03. Soon after this loss level at 33 KV can

be measured.

Division wise Energy Balance statement up to March 2002 has already been

furnished to the Commission vide this office letter No.KPTCL/B-36/D/4533/1857-59

dated 17-10-2002. Energy Balance statement for April and May 2002 will be sent

shortly. From 1st of June 2002, ESCOMs have to furnish Division wise Energy Balance

statement.

2.4 Replies of ESCOMs

2.4.1 BESCOM Reply:

Special teams are sent from Corporate planning Wing to validate the energy audit

figures as month-to-month variation is noticed due to incorrect Computation of

metered & un-metered sales.



As agreed during the meeting on 8-10-2002 with the commission, validation of

energy loss figures of all cities & towns will be completed and report will be

submitted to the Hon’ble Commission before December 2002.

2.4.2 Reply MESCOM:

1) MESCOM is fully committed to reducing the losses and introducing energy

accounting at all levels. For ensuring the same as a first step, it is intended to

continuously collect information and analyse the same. This process has already

been initiated and it is decided to take the assistance of private participants in this

regard and a tender has already being floated on an experimental basis.

2) The Chief Engineer of MESCOM has been made in charge of identifying the high

loss making feeders and to formulate schemes for reduction of loss.

3) MESCOM has already completed the analysis of the energy audit reports of

June, July and August for ten towns and cities.

4) Some of the measures contemplated for reduction of commercial losses include

providing of additional distribution transformers, provision for additional link lines

and express lines, and replacement of DC/MNR meters, and ensuring 100% billing.

Intensive metering programme has been taken up for replacement of meters of

MNR installations, because of which 2,12,934 meters have been provided. To target

theft and pilferage of power, a vigilance action plan has also been formulated and

targets have been set to convert commercial losses into revenue demand. Out of

the nine Vigilance Police Stations, four are already functional and efforts are made

to operationalize the others.

5) Energy Balance Sheet is prepared at the Division level. The Chief Engineer of

MESCOM is taking up supervision of data collection for the purpose.

6) A proposed incentive scheme based on performance measure has been

prepared in consultation with GoK and Institutional Strengthening Consultants. The

Energy Audit details of 11KV system of MESCOM Division-Wise have been furnished

to the Commission on a regular basis.

7) Distribution loss of 46 towns (10 towns in MESCOM) : In the cities of Mangalore,

Udupi, Shimoga, Badravathi and Sagar the losses have been brought under 15%. In

the cities of Chikkamagalur, Mysore, Hassan and Mandya it is in the range of 15 to

20% and in the city of Chamarajanagara it is 29.13%. Analysing the loss figures and

developing action plan to address the same has been a continuous process and

efforts are on to bring the losses in all these cities to less than 15%.



8) MNR installations in the identified cities have been replaced as a part of the

general programme of replacing DC/MNR meters. This effort would continue to

keep the MNR figure below the figure stipulated by the Commission.

9) Efforts are being made to reduce the technical losses by properly directed

capital expenditure and reduction of commercial losses by effective checking of

installations with the assistance of Vigilance Wing.

10) The issues like having accurate interface metering with KPTCL and other

ESCOMs is being dealt with utmost urgency. Further, in order to have a more

accurate assessment of IP set Consumption, action is being taken to install energy

meters to all the IP sets connected to the DTCs involved in the estimation of IP set

consumption. This is expected to be completed by March 2003.

2.4.3 Reply of HESCOM:

1) HESCOM is making sincere efforts to reduce such losses. Action has already been

taken to reduce the distribution losses at 11 kV and below by taking up system

improvement works, APDRP works. In addition to these works, improvement works to

reduce the losses in 12 selected towns in HESCOM is under progress. Further 11 kV

Town feeders with high losses have been identified for intensive Vigilance activity.

2) An Energy Audit Cell comprising of CEE (Hubli Zone) as its Chairman, SEE (MRT)

and SEE (TL & SS) and AEE (E) at Corporate Office as its members, while EEE, Energy

Audit at Corporate Office will be its Convenor.

The tasks involved are:

Developing Energy Audit Manual in co-ordination with counterpart team of

KPTCL

Listing objectives and common errors in Energy Audit

Developing Network map and assessing the correct input,

Estimating the un-metered consumption scientifically

Preparation of feeder wise accounts of energy delivered

Evolving appropriate methodology for shared feeders and (g) Carrying out

transformer failure analysis.

2.4.4 Reply of GESCOM:

1) GESCOM is fully committed to reducing the losses and introducing accounting at

all levels for ensuring the same. As a first step, it is intended to continuously collect

information and analyse the same. This process has already been initiated and a

core team under Chief Engineer (Corporate Planning) has been constituted to

analyse the energy audit reports on a continuous basis. In order to monitor the

energy losses more closely and to identify contributory factors it has also been



decided to conduct a sub-division level analysis. Instructions have been issued to

field offices to identify high loss feeders and to calculate the losses in feeders

supplying to IP sets.

GESCOM has already completed the analysis of the energy audit reports of June,

July and August of ten towns and cities. Following trends have been noted:

There has been an increase in energy losses in Gulbarga, Yadgir, Bidar and

Raichur towns.

Metered sales have come down in Gulbarga, Yadgir, Bidar, Raichur,

Koppal and Gangavathi towns.

Unmetered sales has gone up in Yadgir, Bidar and Bellary towns where as it

remained more or less the same in Gulbarga, Shahabad, Raichur,

Sindhanoor, Gangavathi and Hospet towns.

Input energy as measured in 11 KV feeders has increased in almost all the

towns except Sindhanoor, Hospet, Koppal and Gangavathi towns.

The trend during recent months indicates a decline in the performance. Transitional

issues and related constraints may have resulted in some slippages but GESCOM is

committed to reducing the losses and has already initiated a number of steps to

control them. These include 100% metering of urban feeders, metering of IP sets &

street lights, providing ETV meters, MNR replacement, sealing of meters,

improvement to distribution system, intensified vigilance raids, regularization and

physical verification drives etc.

2.5 Comments of KERC

2.5.1 Comments On KPTCL Reply:

There has been substantial delay in compliance with this directive of metering.

During several meetings in the last 2 years it was assured that the work would be

completed and voltage level wise losses would be provided from Jan 03. It was also

assured that all 11 KV feeder meters would be read using MRIs from April 02. But so

far the MRIs are not used for reading the ETV meters of the feeders. During the

meeting held with KPTCL on 24.01.03 it was reported to the Commission that the

work of metering at other voltage levels would be completed by March 03 and

voltage level wise loss figures based on meter readings would be furnished

thereafter. Further it is observed that several meters at interface points with ESCOMs

are faulty due to MNR, CT/PT failure etc.

There is no specific reply from KPTCL on the directive of transmission losses. For FY 03

the loss up to 11 KV is said to be estimated at 8.33% out of which the 33kV segment

loss is 1.94%, there by the Transmission loss is said to be 6.39%. The same loss level is

projected for FY 04. There is no proper and satisfactory reply for keeping the same

loss level for FY 03 and FY 04.



2.5.2 Comments of KERC on Replies of ESCOMs:

The reply of ESCOMs is inadequate. ESCOMs have reported that the vigilance

activities have been increased. But even then the loss in the distribution system has

increased in the recent times.

The ESCOMs have furnished break up of losses at different levels. These are not

based on a sound basis.

The ESCOMs should take focused action in the matter of reduction of commercial

loss by increased vigilance activities. The task of sealing consumer energy meters is

pending for a long time.

There is delay in creation of responsibility centres and allocation of targets and

responsibilities to these centres. Even though ESCOMs have reported that the

responsibility centres at Division level have been created, the activities of these

centres are not satisfactory. To evaluate the performance of these centres and the

ESCOMs the Commission has issued reporting formats in November 02 with a

request to furnish the reports by 15th of every succeeding month starting from the

month of November 02. Even though the reports are received belatedly the

reporting seems to be not satisfactory.

The Commission issued directive on 4.10.2000 to reduce the losses to 15 % in 46

selected tons/cities. But there is no effective action in bringing down the losses.

The distribution loss levels in these towns/cities reported till November during FY03are

as follows:

ESCOM No. of

Towns

Monitored

Towns with loss %age

35-40% 30-35% 25-30% 20-25% 15-20% < 15%

BESCOM 14 -- 1 1 2 7 3

MESCOM 10 -- -- -- 1 5 4

HESCOM 12 -- -- 3 1 5 3

GESCOM 10 2 5 -- 2 1 --

Total 46 2 6 4 6 18 10

The IP sets in the town limits of the towns enjoy uninterrupted power supply. In spite

of several assurances to the Commission, they are not yet metered.

Further, even after three years of continuous persuasion by the Commission, the HT

metering cubicles to all the semi urban feeders to measure and segregate the



consumption outside the town limits in order to assess the loss accurately are yet to

be provided.

Further, metering and conversion of BJ installations in town limits, is not yet

completed. It is reported that the consumption by BJ installations within the town

limits is far more than the specific consumption by domestic lighting installations.

The Commission had directed ESCOMs to take up energy audit of at least three

DTCs in each urban sub division. Even though it is reported that the DTC energy

audit is taken up in some Sub Divisions the reports are not furnished.

Regarding DC and MNR installations there is no compliance with this directive by

the ESCOMs. There is an increase in the percentage of DC/MNR during FY 03 as

against FY 02.

The situation in GESCOM is alarming. It is reported that the meters are not supplied

in adequate quantities.

Regarding Survey of Unauthorised IP Sets the ESCOMs have not reported

specifically on this point and there seems to be no substantial compliance with this

directive. Even though about 79,000 unauthorised IP sets are reported to be

regularised during anti theft drive during March-April 2002 it has come to the

knowledge of the Commission that several un-authorised IP sets are getting added

even now and no action is taken on this matter due to law and order problem.

The Commission has issued a revised procedure for estimation of IP set consumption

by deducting LT line losses and taking account of the unauthorized IP sets

connected to the system. The revised procedure is not yet implemented.

Regarding Survey of IP sets with classification such as bore well; open well etc.,

along with capacity of pump there is no compliance with this directive by any of

the ESCOMs.

3.0 Directions in respect of Quality of Service as in Tariff Order 2000. (Page No. 219 )

3.1 The directives under Quality of Service contained the items like the reduction of

interruptions, maintenance of good voltage & frequency, earmarking of capital

expenditure for improvement of quality of power supply in rural areas, monitoring of

interruptions, identifying & improving low voltage pockets, maintenance of EHT & HT

capacitor banks, complaint handling machinery, reduction of accidents etc.




The Commission has no information on the review of interruptions that is being taken

up in the RBC meetings. Consequently the Commission is not able to arrive at a

conclusion whether all possible steps in this regard are being taken by KPTCL or not.

Failure rate of transformers in rural divisions is on the increase.

KPTCL could have furnished 11 kV feeder interruption data (number of trips and

hours) for each MUSS monthly to assess the improvement in the power supply

conditions.

Regarding interruptions monitored by the Zonal Chief Engineers the Commission has

not been provided with any data. Monthly MIS may be evolved and the data in

that format may be made available to the Commission.

Systematic identification of division wise low voltage pockets has not been done.

The Commission notes that the licensee has not provided any specific and time

bound action programme to improve the low voltage conditions and has not

committed itself to any such programme.

The standard data MIS formats are not yet developed for monthly monitoring.

Several capacitor banks are out of service/are in service at reduced capacities.

It is observed that the complaint registers are not maintained uniformly at all

responsibility centres.

Due to the inadequacy of basic information as explained above, the Commission

has not been able to conduct the hearings on quality of supply as had been

originally planned.

Fatal accidents have increased. The fatal electrical accidents are more due to

snapping of conductors, non-observance of line clear procedure, ignorance on the

part of the public, un-authorised persons meddling with KPTCL power lines.

Though KPTCL has stated that it has taken remedial action, the Commission is

unable to agree with KPTCL since the accidents have actually increased.

3.3 Reply of KPTCL in current filing

Information regarding Quality of Service in respect of Transmission system of KPTCL

as per formats QoS T1, QoS T2, QoS T3 and QoS T4 of the Commission from April 2002

are being compiled and sent to the Commission.



The status of the Quality of Service on month to month basis can be reviewed by

this information and the respective Transmission wings are directed to take

corrective steps in order to improve the same.

The total amount earmarked for FY03 in Budget for Transmission and sub-stations is

Rs.247.66 crores, out of which, Rs.199.71 crores is earmarked for Rural Areas, i.e., 81%

of total amount is earmarked for Rural Areas.

3.4 Reply of ESCOMs

3.4.1 Reply of BESCOM:

Due to poor monsoon and low reservoir levels the state’s total consumption is limited

to 80 MU per day. The above energy is rationed among all the ESCOMs and the sub

stations, thereby BESCOM is able to supply only 5 to 6 hours of 3 phase power supply

and 10 hours of single phase supply by rostering to the Rural Areas. There will be no

power supply for the balance period. Even in cities/towns (outside Bangalore) load

shedding to an extent of about 1½ to 3 hours per day is being done due to

generation limitation.

Due to constrains in allocation of the budgets by the Government all the planned

E&I Works cannot be taken up.

The H.T lines added in the first half of the current year is about 82% of the total of last

year indicating improvement of distribution system particularly the rural areas.

The quality of services regarding Transformers failure, Interruptions & Accident

Analysis is also being monitored.

Bench marking & Safety Audit is being taken up as per the directions of the

Commission to monitor the quality of service.

Comprehensive schemes have been prepared under APDRP programme works for

Tumkur & Kolar Circles for improvement of distribution network and submitted to

GOI.

In the first step proposals are submitted under APDRP to take up improvement works

at Taluk level. In these schemes all the 11KV lines having more than 9% Voltage

Regulation are bifurcated into Additional feeders to bring the voltage regulation

below 6% which infrastructure is sufficient to meet the load growth in the 10th Plan

period. More nos. of 25KVA DTs are provided to reduce the LT Distribution Loss.

150 Nos. of 15 KVA capacity three-phase distribution transformers have been

installed in BMAZ & BRAZ areas exclusively feeding to water supply installations.

Hon’ble Commission is aware that community involvement in Rural distribution is

being experimented in 3 O&M Units in BESCOM area and in this area 42nos. of 15



KVA Transformers are being installed to improve voltage regulation and benefited

consumers have agreed to clear all the IP dues.

Procurement of 15KVA 3 phase and 15KVA single phase DTs is also planned to

bifurcate village and IP loads so as to increase hours of single phase supply to

villages.

The Govt. of India under APDRP has approved Rs. 372.21 Crores for distribution

system in the areas of Roberts pet/KGF, Bangalore, Tumkur, Davanagere.

Any change in the ‘Capital Investment’ will be placed before the Hon’ble

Commission for revision of Capital Works Programme in regard.

3.4.2 Reply MESCOM:

APDRP Works has been taken up in respect of five divisions in Mysore Circle at a

cost of Rs. 95 Cr. Work in progress has been of the order of Rs. 53 Cr. and the

balance is expected to be achieved by the January 2003.

The divisional officers are taking up new capital works. Prioritising the capital works

has been in progress lately since resources have been a constraint. Works that show

faster payback period are being emphasized.

All efforts are being made for improvement of quality of power supply in rural areas

by proper and periodic maintenance of distribution lines, DTCs and jungle

clearance and undertaking pre-monsoon inspection. The field officers have been

directed to identify the low voltage pockets in their area and draw up action plan

to over come this.

3.4.3 Reply HESCOM:

The earlier allotment of 14.562 MU per day to HESCOM has been revised to 17.02

MU per day from Septermber 23, 2002. At present power supply to rural feeders is

being regulated to 6 hours per day instead of 8 hours of 3 phase supply per day

and 12 % of the rural feeders feed 3 phase supply for less than 6 hours due to (a)

Over loading of stations (b) Inadequate switchgear (c) Unscheduled load shedding

by KPTCL. However, steps are being taken for up-gradation of 33 kV sub-stations to

110 kV stations, providing additional power transformers, augmentation of power

transformer capacity, providing additional switchgear etc in order to improve the

quality of supply. Most of the above works are taken up by KPTCL and works are

under progress.

3.4.4 Reply GESCOM:

To prove its commitment on improving the quality of supply and service to its

consumers GESCOM has also set ambitious targets for itself for FY 2002-03. At the



outset it would be prudent to emphasise that to improve the quality of supply from

a level so inadequate to what is desirable needs significant effort, investment and

time. Results too will not be very forthcoming in the initial phases although the

efforts will reap rich dividends in the near future.

As many initiatives would require significant investments and hence depend on the

resources available to GESCOM. While some of the resources can be raised from

the outside agencies, internal resources would be important and hence tariff

increase and rationalization process has to proceed in conjunction with the

investments for improving quality of supply. GESCOM has established targets on a

division-wise basis for FY 2002-03

GESCOM intends to install additional transformers to manage the problem of

overloading and for improving voltage profile.

Significant efforts have been made by GESCOM in improving the quality of supply

and related infrastructure. GESCOM would like to ensure the Commission that

intensive efforts would continue in this direction in the future.

It is planned to take two feeder i.e. Yergera feeder (Raichur Division) and Srinivas

Saradgi feeder (Gulbarga division) for complete standardization on a turnkey basis.

Initiatives are being undertaken to improve the voltage profile in several divisions

including Gulbarga, Koppal, Hospet and Bellary .A comprehensive proposal has

been prepared under the APDRP scheme for improvement in quality of supply in

rural areas.

GESCOM has 24-hour complaint centers functioning in cities of Gulbarga, Bellary

and Raichur. It is envisaged to operationalize complaint centers in cities of Bidar

and Koppal. GESCOM has also initiated preventive measures to reduce accidents.

3.5 Comments of KERC on the Replies:

3.5.1 Comments of KERC on the Replies of KPTCL

In order that it will be easy for KPTCL to submit the data, the commission evolved,

four formats for furnishing data in respect of line interruptions, major equipment

failure details, Accidents and Bus voltage in select locations.

There is delay in furnishing the information by KPTCL. Only after continuous follow up

KPTCL has started furnishing the data in the specific formats. However the formats

are not properly completed. The Commission is analysing these reports.



3.5.2 Comments of KERC on the Reply of ESCOMs

In all the public hearings in connection with tariff filing, the consumers are

expressing their dis-satisfaction at the number of interruptions, low voltages and

poor quality of supply. The efforts made by ESCOMs to improve the quality of

supply are not satisfactorily. The rural consumers especially the IP set consumers are

vociferous in their representation that they are not getting continuous three phase

power supply at least for 4 to 5 hours per day. The ESCOMs have expressed that

the rationing of energy has played a great role in the increased number of

interruptions and consumer dissatisfaction. The ESCOMs have expressed their

difficulty in completion of planned works in distribution system due to fund crunch

and constraint in budget allocation. The improvement works have suffered to a

great extent. The Commission notes that there is no substantial improvement in

reduction of LT to HT ratio, which would play a great role in reduction of

interruptions, improvement in voltage and loss reduction. As per the details

available in the Commission, the progress made in FY03 is marginal. Even now, the

LT to HT ratio is more than 2.5% and is nearly 4% in some ESCOMs. Even though the

improvement works are reported to have been taken up in some Circles under

APDRP proper implementation/monitoring in terms of agreement under APDRP

needs to done. The compliance/replies of MESCOM and HESCOM to the directions

are very inadequate. GESCOM has set some targets for easing of over loaded

conditions of distribution transformers. But while the transformers over loaded are

about 1650 the target for FY03 is a dismal 415 and achievement till August 02 is 374.

The targets are very inadequate compared to the number of over loaded

transformers.

A directive was issued to all the ESCOMs on 8.8.02 to monitor and work out the

interruption level initially in 46 towns and cities by down loading data from ETV

meters of 11 KV feeders through MRIs and the same has not been complied with.

Even though BESCOM has reported that they have taken action to out source the

task, further details are not available. Subsequently, during the month of November

02, the Commission has issued formats for performance evaluation and bench

marking to all the ESCOMs. These formats encompass most of the directives under

quality of service issued in Tariff Order 2000 such as interruptions, duration of

interruption, etc. The Commission has directed ESCOMs to furnish the details

starting from the month of November 02 to be reported by 15th of succeeding

month. The time schedule has not been maintained by the ESCOMs. But the

details worked out seem to be not in order and the base line parameter are yet to

be finalised.

Regarding EHT & HT capacitor banks, the same shall be maintained in working

condition at full capacity for better voltage maintenance. Regarding complaint

handling, the consumers in some hearings objected for not keeping up with the

standards laid down in Standards of Performance.



Even though there is fall in number of accidents in BESCOM, the number of fatal

accidents have increased from 47 in November 01 to 58 in the corresponding

period in FY03. MESCOM has accounted for 45 fatal accidents in FY03 till

November. In case of HESCOM the total number of accidents and also the number

of fatal accidents have increased. In GESCOM the number of accidents has

increased, the number of persons met with fatal accidents is 33 as at the end of

Nov 02 when compared 30 fatal accidents during corresponding month of the

previous year. The Commission notes that the remedial action to minimise

accidents by ESCOMs is inadequate.

In conclusion, Commission observes that there is no compliance in this directive by

the ESCOMs. The low voltage packets shall be identified and specific time bound

action programme shall be provided to the Commission.

4.0 Directive on Distribution Transformer Failure (as in Tariff Order 2000)

4.1 The directive is about reducing the distribution transformer failures and restricting

the same to 5% in urban areas and to 12% in rural areas and to reward the staff who

perform better and to take action on officials/officers who disregard this work

leading to higher failure.

4.2 Comments of KERC in Tariff Order 2002 (Page No. 47)

The Commission is happy to note that the failure rate of distribution transformers has

come down in the State as a whole to 19% in FY02 in comparison with 22.3% in the

previous year. KPTCL shall take action to reduce the failure rate by 4 % during FY03.

4.3 Replies of ESCOMs in the Current Filing:


The Transformer failure rate in Bangalore City is Zero, but there is no reduction in

failure of transformers in rural areas in spite of maintenance works being carried out.

As per the above analysis, the main reason for the same is the IP sets regularized

under ATL, reduced hours of 3phase supply leading to no diversity and use of

condensers during rostered supply.

Failures are also due to short circuit of LT distribution lines and failures due to

overload and other reasons. To bring down the failures due to these reasons, the

following measures are taken.

The BESCOM has issued instructions to all EEE’s to submit action plan for reduction of

failure of DT’s identifying worst sub-division and worst feeder. All divisions have

submitted estimates for maintenance of DT centres like providing DOLO/HG Fuse

units / LTP Kits / Grounding / Las / Topping of oil / New lugs / Lead wires / spacers /



Intermediate poles etc. The materials are being supplied and T.C. maintenance is

being insisted. Shortage of skilled staff like Section Officers/mechanics is also a

deterrent factor. Additional T.C’s are also being installed to reduce the over

loading.

The maintenance of 11 KV feeders where the DT failures rate is high is taken on

priority.

In order to address the problem, numbers of feeders have been selected per sub-

division where failure rate is high and needful remedial measures are taken up.

The scheme of incentives prepared by M/s. PWC for the performance of entire sub-

division is being examined

4.3.2 Reply of MESCOM:

As observed by the Commission, the failure rates of certain divisions in Mescom was

more than 30% - Channarayapatna, Sagar and Chamarajanagara.

The existing systems and procedures in the Company do not capture the

information regarding the Distribution Transformer Failure rates, as the Corporate

Office would like it to be.

A plan has been devised to capture information, report them in the proper format,

and then analyse the reasons for the same.

In some division the failure rate of less than 10%, in some divisions it is in the range of

10-15%. C.R. Patna is with a high figure of 18%. However all out efforts are being

made to ensure the failures are kept to bare minimum.

At the end of year the distribution failure rates will be reviewed and suitable cash

award will be thought of for the outstanding divisions.


There are 44938 DTCs in HESCOM. The Corporate Office is regularly monitoring the

failures division-wise and action is taken to analyse the reason for failures. The

analysis reveals that most of the failures are caused due to single phasing,

overloading during peak hours ad unscheduled load shedding on the rural feeders.

In order to curtail the failure rates remedial measures are being taken.


GESCOM has inherited a high transformer failure rate caused due to overloading of

transformers, maintenance practices, purchase procedures etc. It would however



like to bring to the attention of the Hon’ble Commission the fact that improvement

would be gradual and also require measures such as investments, discipline in

consumers on managing their demand etc. GESCOM has established ambitious

targets for itself for FY 2002-03 and is measuring failure rate on a monthly basis and

making efforts to reduce the failure rate.

GESCOM intends to put a transformer information monitoring system in place to

track down the reasons for failure of transformers. It is also intended to take-up a

drive for repair of transformers.


With the data furnished to the Commission by the ESCOMs till the end of November

2002, it is found that there is no failure of transformers in BMAZ of BESCOM. But the

over all reduction in failure rate in BESCOM is very marginal. It is 11.33% as against

11.96% found during the corresponding month of previous year. In MESCOM and

HESCOM the failure rate has gone up by about 0.6% and it is at 13.1% and 12.7%

respectively. In GESCOM even though there is fall in failure rate as at the end of

November 2002 in comparison with the corresponding month of previous year. The

rate of failure is high @15%. This may be because of more number of over loaded

transformers in GESCOM. It is stated that the failure is contributed by ATL

installations also. The installations added in ATL especially the IP sets are yet to be

provided with infrastructure even though the development charges have been

collected. KPTCL had assured to complete the infrastructure work within six months

in April 02. In the Tariff Order 2002, the Commission had directed that the

transformer failures should be brought down by another 4% from 19% found during

FY02 for the entire state. It is obvious that this is not complied with. The failure

analysis is to be taken up seriously by the ESCOMs and necessary MIS is to be

developed to monitor and minimise the failures.

5.0 Directive on Capital works programme: (as in Tariff Order 2000 Page No. 84)

5.1 The directive covered earmarking of funds for improving the T&D system, time

bound action plan for improving T&D in rural areas, prioritising the capital works,

realistic project cost estimates, benchmarking of system parameters, interest

charging, maintenance of cost registers, preparation of completion reports, action

plan for enhancing safety etc.


There is no improvement in preparation of realistic estimates, benchmarking and

also the physical progress of works is very much less when compared to the targets.

KPTCL should address the issues impeding the progress as substantial investment is

involved lest the T&D loss reduction and quality improvement programmes suffer a

setback.



5.3 Reply of KPTCL in the Current Filing:

Technical Co-ordination Committee (TCC) which was constituted as per

Government Order DE 33 PSR 2002 dated 12-07-2002 has approved Power System

Study Report prepared by M/s. PRDCL on 9th August 2002

As TCC has approved the PRDCL report, the new works will be prioritised as per the

report and will be taken up for execution based on earmarked Capital expenditure

as per FRP. KERC vide letter No.X/02/01/1432 dated 04-09-2002 has indicated that

works are to be prioritised even when budget is restricted and that the works with

higher BCR and Energy Savings is taken up on priority after approval by the

Commission.

As PRDCL report has been approved during the month of August 2002, action will

be taken to prepare the priority list of new works to be taken up for future years to

match the FRP.

Further, in this regard Capital expenditure and Budget provision for 2003-04 has to

be provided for all on-going works so as to complete the same.

The DPR’s are prepared on realistic basis for establishing stations for which lands are

available after duly conducting the survey for Transmission line from Date of Issue of

Circular by Corporate Office. DPR’s prepared prior to 25-08-2002 and for which

already the work is in progress, action is taken to revise the DPR as per actuals on

completion of the work, if there is any variation / deviation in estimated / DPR cost.

Circular instructions have been issued to field staff for documenting the system

parameters to arrive at benefits derived due to commissioning of new sub-stations.

DPR’s approved for Transmission works by Corporate Office includes IDC and in this

regard necessary circulars are issued.

It is intimated by the Major Works Units that 43 completion reports are to be

received from the field. Instructions are being issued in this regard to prepare the

completion reports immediately.

Further, all the Major Works units have intimated that the Cost Registers have been

posted up to September 2002.

As explained in para No.3 on the directive of Quality of Service, the status of the

Quality of Service including the details of accidents occurred, etc., on month to

month basis can be reviewed by the information and the respective Transmission

wings are directed to take corrective steps in order to enhance safety.

Power System Studies are conducted by M/s. PRDCL and has identified new

stations, Transmission lines, Augmentation of station and strengthening of existing



Transmission Network and has furnished the yearly phased implementation up to

2007 as a need based programme to achieve the parameters as envisaged by the

KERC. Due to restriction in the fund availability for Capital Expenditure, execution of

works as per system study report will have to be deferred / postponed and hence, it

will not be possible to achieve the desired results as per the study report.

5.4 Reply of ESCOMs in Current Filing:


The budget allocation for 2002-03 in respect of ESCOM’s was furnished by KPTCL.

The allocated budget for BESCOM for the year 2002-03 was Rs.163.58 crores. As per

the directions of GOK vide MTFB 2003-06, due to the limitations of Borrowings the

budget allocation has been reduced to Rs.108.71 crores.

Considering the procurement action already taken, materials on stock and

metering materials required, there is very little Capital budget for major initiatives

under E&I.

Project cost will be on realistic basis in distribution sector.

Documentation of Bench Marking of parameters is being done & will be submitted

to the Commission after validating the Data received from the field units.

Instructions have been issued to update cost Registers & to submit CRs as soon as

the works are completed.

BESCOM has taken note of Commission’s directive that no work estimated to cost

more than 1.00 lakh will be awarded without going through a process of

competitive bidding.

There is continuous efforts & commitment of BESCOM to improve T&D system in Rural

Areas by providing additional TCs, reconductoring, New 11KV lines etc. and the

data provided earlier indicates the increase quantum of 11KV lines added in the

current year

5.4.2 Reply of MESCOM

MESCOM in its endeavour to provide quality supply to its consumers seeks to make

prudent capital investments.

GoK as part of FRP has approved investment plan especially the size of investment

for various activities. Mescom will provide a perspective plan on investments

covering information required by the Commission.



The Capital Works Programme is being drawn up for all the Divisions so that

regulation of 6% is maintained at the distant LT point from DTC end. Further works for

energisation of Hamlets, Harijan Basthies, Tribal Colonies, Water Works etc., is being

taken up on priority.

Works to reduce energy loss of the feeders to be below 15% is also being planned.

The priority area for Mescom is loss reduction and rural electrification and metering.

Documentation of Bench Marking of parameters is being carried out and will be

submitted to the Hon’ble Commission after validating the Data received from the

field units.

Instructions have been issued to update cost registers & to submit cost registers as

soon as the works are completed.

MESCOM has taken note of Hon’ble Commission’s directive that no work estimated

to cost more than Rs.1.00 lakh should be awarded without going through a process

of competitive bidding.


The steps taken by HESCOM have been as follows:

The budget allocation for 2002-03 in respect of ESCOMs was furnished by KPTCL to

the Hon’ble Commission. The allocated budget for HESCOM for the year 2002-03

was Rs.124.81 Cr. As per the directions of GOK vide MTFB 2003-06, due to the

limitations of Borrowings the budget allocation has been reduced to Rs.120.75 Cr.

Capital works are prioritized based on the requirement of such works for

improvement of the distribution system. The prioritization of capital works shall be

submitted to the KERC for approval.

The sub station works in the circles of Belgaum, Hubli, Bijapur are to be taken up on

priority in order to improve the quality of power supply:

Further 24 Nos.additional 33 KV sub stations are under construction and are

targeted for commissioning by March, 2003.

The estimated cost for distribution works is always being arrived at based on field

survey and application of the latest schedule of rates.

1. HESCOM is making efforts to prepare Project cost estimates on a realistic

basis



2. Documentation of Bench Marking of parameters is being done & will be

submitted to the Hon’ble Commission after validating the Data received

from the field units.

3. Efforts are being initiated to update and submit cost registers as soon as the

works are completed.

4. HESCOM has taken note and will follow Hon’ble Commission’s directive that

no work estimated to cost more than Rs.1.00 lakh should be awarded

without going through a process of competitive bidding.

5. There is continuous effort and commitment of HESCOM to improve T&D

system in Rural Areas by providing additional TCs, reconductoring, new 11KV

lines etc.

6. HESCOM wishes to invest an amount of Rs. 186 Cr for the year FY03 under

APDRP, the 50% of the amount will be provided by the GoI and the

remaining 50% will be borne by HESCOM. HESCOM requests the Hon’ble

Commission to allow the debt servicing cost on borrowings to fund such

capital investments.


The process of evolving independent priorities and capital works programme for

each of the ESCOM’s is not yet completed and the targets and amount available is

provided by the KPTCL. For FY 2002-03, KPTCL had initially indicated a budget

provision of Rs. 94.18 Cr. for the GESCOM. However, on October 1, 2002, the KPTCL

has indicated a revised budget provision of Rs. 57.97 Cr, after considering the

limitation of borrowings to Rs. 650 Cr.

The actual capital expenditure till September 2002 is Rs. 30.16 Cr. The balance

budget provision available to GESCOM is Rs. 27.83 Cr. While GESCOM is in process

of evolving a proper allocation for the remaining months considering the substantial

reduction, an indicative programme is as provided below.

GESCOM has understood the concerns of the Hon’ble Commission provided under

this directive and would accordingly internalise them when it is able to formulate an

independent capital works programme. In order to minimize the cost of inventory

build-up and to reduce delays in procuring material, it is proposed to execute

projects on a turnkey basis to the extent possible.

5.5 Comments of KERC On Replies: KPTCL reply:

In spite of the specific directives from the Commission, prioritisation of works are not

being done, the estimates in respect of works are not being done, the estimates in

respect of the projects continue to be prepared unrealistically, project reports

continue to be prepared without being based on the field survey, bench marking

of important parameters in the project areas is not being adhered to. Thus no

serious efforts are being made to comply with the directives.



5.6 Comments of KERC on the Replies of ESCOMs

ESCOMs have furnished replies in a very general way and have expressed that the

budget constraints for FY03 were preventing taking up major initiatives. There is no

such constraint for FY04.

6.0 Directive on Metering in Tariff Order 2000 (Page No. 132)

6.1 The directive is on the metering programme of Un-metered installations BJ/KJ, IP

sets and Streetlights.. Regarding metering of BJ/KJ installations the Commission

directed KPTCL to first examine the options available in order to identify possible

alternatives to universal metering of all BJ installations and on metering of IP sets

and street lights and provision of pre-paid meters to domestic consumers.


KPTCL has not complied with the Commission's directives to examine the options

available in respect of metering BJ/KJ installations. The actual progress in metering

is very poor.

KPTCL has not taken any action so far on the provision of pre-paid meters for

domestic consumers.

6.3 Replies of ESCOMs in the Current Filing:


The metering programme has been reviewed and a revised programme has been

sent to GoK, for their kind perusal keeping in view the universal metering policy

already approved by GoK.

Metering of Bhagyajyothi/ Kutirajyothi: The number of Bhagyajyothi and Kutirajyothi

(BJ/KJ) installations as on June 1, 2002 is 5,33,328 and the amount required to meter

all these installations is expected to be Rs.56 Cr. It is proposed to take up this work

during next three and half years and complete by 2006. In the current year since

procurement action has just been initiated, meters can be provided to only 50,000

BJ/KJ connections, which are likely to be serviced.

Metering of Public Lighting: The total number of Streetlight Circuits to be metered in

BESCOM area is 29,918 and the approximate cost for providing the same will be

Rs.5.39Cr. Experience shows that metering to public streetlights is required more for

energy audit than for revenue improvement and even on undertaking an intensive

energy audit of these installations, the assessment will not make a substantial

impact on the total loss as street consumption comprises about 2 % of the total

sales.



BESCOM proposes to give priority first to metering of public lighting circuits for

proper energy audit in the 13 Towns and Cities and in Bangalore City and to take

up metering in other rural areas later on so that correct energy audit can be done.

It is therefore planned to complete the entire activity over a period of three years.

Metering of IP sets: BESCOM is reviewing whether metering of all IP sets is to be

carried out to accurately to account for the consumption by IP sets considering the

huge investment of about Rs.140 Cr., which would be required. The sample

metering of distribution transformers predominantly feeding the IP sets is an

inexpensive method to accurately estimate the IP set consumption and to arrive at

the total losses in the system. The earlier methodology of IP consumption estimation

has been reviewed by the Hon’ble Commission with proper accounting of

distribution system losses in the LV network between DTC and IP Sets while

estimating IP set consumption and this procedure will be adopted in current year.

The recent experience of fixing meters to IP sets in some of the ESCOMs has shown

that the farmers resist the installation of meters to IP sets particularly in the dry

districts where deep well pump sets are more and IP set consumptions are high. The

survey done by CSMR, Hyderabad, has also indicated that consumer will resist the

installation of meters. Further, with the present flat rate per HP and metered IP set

tariff, there is no incentive for the farmers to accept metering. There is also a

suggestion that the metered tariff has to be constant for a period of 2 to 3 years, in

order to incentivise the metering programme as farmers are apprehensive that the

metered tariffs or policy of billing may get modified in the next tariff revision. Reports

have also indicated that the farmers have no paying capacity to pay the cost of

electricity supply. Some pilot studies are being undertaken in some Rural Distribution

pockets to assess the feasibility of having Grama Panchayats or Transformer user

associations.

In the backdrop of the above, the immediate necessity to meter all IP sets needs to

be reviewed and an action plan of metering of all IP sets will be drawn up

separately. Further metering of all IP sets connected to the urban feeders i.e.

coming under the categories LT -4a(ii), LT-4(c) (above 10 HP) and LT-4 (d)

(Agricultural and Plantation) will be taken up and provided with meters in the year

2003-04.

The metering programme will be finalized after receiving the views of GoK.


Providing meter to BJ/KJ Installations in all the five divisions of Mysore Circle has

been taken up and so far, 49268 meters for BJ/KJ have been installed. Metering for

IP Sets has also been taken up for identified 9 out of 14 divisions in the jurisdiction of

MESCOM, and 63,086 nos. for IP sets have been installed. The entire process of IP set



metering will be completed in two more years’ time. However providing meters to

BJ/KJ Installations in other circles will be taken up in due course.


As on July 15,2002 there were 22,1320 DC/MNR installations. HESCOM has replaced

138,536 meters till August 20,2002. Replacement of meters for balance 82,784

installations will be done after supply of new meters. Orders for purchase of 140,000

meters is already placed and the supply will commence from November 2002.


GESCOM intends to conduct a careful analysis of the proposal for metering of

Bhagyajyothi/ Kutirajyothi installations as suggested by the Hon’ble Commission. In

the meanwhile, new Bhagyajyothi / Kutirajyothi installations, are being provided

connection with meters. GESCOM has also proposed to convert Bhagyajyothi /

Kutirajyothi installations with more than one bulb into domestic category. During the

current financial year 16,583 installations have been converted from Bhagyajyothi /

Kutirajyothi to domestic category.

The metering programme for street light circuits and urban IP sets has been

formulated. Presently, there are about 11,639 IP sets fed from urban feeders that

remain to be metered. It is proposed to provide meter to these consumers by the

end of December 2002. Currently, only 348 street light circuits out of 1,023 are

metered. It is proposed to meter all the remaining by the end of March 2003. There

are 5,159 street light circuits in rural area and majority of them are not metered. It is

proposed to meter all the remaining by the end of June 2003.

GESCOM would analyse the suggestion for introduction of prepaid meters and as a

first step may like to initiate a pilot before adopting the same on a large scale.

6. 4 Comments of KERC

The Commission observes that there is no substantial compliance to the directive.

ESCOMs have not studied the options available to identify the possible alternatives

to universal metering of all BJ/KJ installations. GESCOM have stated that they intend

to analyse the proposal for metering the BJ/KJ installations.

Regarding metering programme of IP sets and Streetlights the progress achieved as

on 15.2.2003 is as follows.



Category MESCOM HESCOM GESCOM

Target Progress Target Progress Target Progress

IP sets 81960 73170 98185 37916 6186 4647

BJ/KJ 188483 109853 309627 194136 42200 36804

Streetlight 7000 8 0 0 1958 1958

Total 277443 183031 407812 232052 50344 43409

Regarding prepaid meters for domestic consumers GESCOM has stated that they

would analyse the suggestion and intend to initiate a pilot scheme. Other ESCOMs

have not come out with any response.

BESCOM has stated that they have submitted proposal on the metering

programme to the GoK and would finalize after receiving the views of GoK. They

have not furnished the progress made. The ESCOMs have to take a focused action

on metering the Urban IP sets on priority.

7.0 Directive on Codes and toll free telephone numbers (Page No.138 of Tariff Order

2000)

7.1 The directive is on several codes of practice, providing toll free telephones and

formulating a scheme to compensate the consumers put to loss by deficient supply.


The Commission has approved the code of practice for payment of bills and the

same is sent for notification in Gazette.

Only BMAZ has been provided with Toll Free telephone.

The Commission has examined the entire issue of compensating the consumers put

to loss by deficient service in the light of the opinion expressed by KPTCL. The

Commission notes, however, that customers have complained bitterly about the

poor quality of service and the losses caused to them. The customers have to

patiently endure all the planned and unplanned load shedding and other

uncertaintities of the KPTCL and even pay penal charges for all lapses, deliberate or

otherwise, on the part of the Licensee. The Commission therefore reiterates its earlier

stand that the Licensee has to formulate a scheme for compensating consumers

put to loss by deficient supply and present the same to the Commission within one

month from the date of this Order.


Toll free telephones are provided in some selected towns.



The issue of formulating a scheme for compensating consumers who suffered loss

because of deficient supply is highly contentious. The question of whether there

was deficient supply, quantum of loss sustained, the machinery to adjudicate these

aspects is complicated and cannot be formulated in a scheme. A scheme that will

suit each case of loss sustained by the consumers is difficult to be formulated as it

depends on various factors. Each case has to be decided independently on its

own merit and based on the facts and circumstances of each case. The question

of payment of compensation arises only in case of proved negligence on the part

of ESCOMs or its officials and on proof of loss. Further, due to poor power availability

and system constraints it is practically not possible to adhere to the standard of

supply as the grid is operated in a closely-knit way and the grid condition is not

always stable and dependent upon power conditions within and outside the state

of Karnataka. However, ESCOMs are examining this issue.


Several codes have been issued by the Commission for implementation by the

ESCOMS.

Toll free telephones have been provided in some of the towns. The ESCOMs have to

provide the same in other towns also.

The Commission in Tariff Order 2002 had once again reiterated its earlier stand that

the licensees have to formulate a scheme for compensating consumers put to loss

by deficient supply and present the same with in one month and the same has not

complied with. The ESCOMs have not formulated the scheme for compensating the

consumers.

8.0 Direction in respect of power purchase plan (Merit Order Power

purchase page 71 of Tariff Order 2000)

8.1 The Commission directed that a plan for purchasing power on a merit order

basis must be prepared for each month at least 15 days before the

commencement of the month and got approved by the Commission.

8.2 Comments of KERC in Tariff Order 2002 (Page No.57)

The power purchase plan is usually received during the last week of the preceding

month.

8.3 Reply of KPTCL in the present filing

The monthly details of reservoirs capacity, schedules, etc. up to March 2003 are

submitted to the Commission vide this office letter No.KPTCL/B-36/4505/T/8/ 1883

dated 25-10-2002.



Karnataka is facing bad monsoon and the availability from all Hydro reservoirs as on

1st October 2002 is reduced by 3211 MU. Therefore, there is difficulty in meeting the

energy sale indicated in ERC for the year 2002-03. Hence, priority is given to keep

the Hydro generation to the lowest permissible limits.

Further, the highest purchase cost is paid to the energy supplied by KAPS and mini

IPPs. However, it is difficult to regulate the generation from these units.

Merit order despatch is followed for purchase of power from major IPPs, such as,

Tannirbavi, Tata Power and Rayalseema. In case of JTPCL, even though their rates

(variable cost) are slightly higher that Tannirbavi, preference is given to JTPCL, since

it is a captive power plant and treated as co-generation. However, when the total

state demand is less than total availability including CGS share, JTPCL is requested

to back down (particularly between 00 hrs to 06 hrs).


The scheduled plan of power purchase from various sources for each month which

are supposed to be submitted on the 15th of the preceding month have not been

received regularly and of late, the monthly plan for power purchase are not at all

received in the Commission even though it has been stated in the ERC for FY 04

that monthly power purchase plan are being submitted regularly to the

Commission.

9.0 Directive on Disconnection of all unauthorised IP sets (As in Tariff Order 2000)

9.1 The Commission notes that KPTCL has been continuously extending the last date

for regularisation of unauthorised IP sets. This policy would lead to such IP set

holders not taking the KPTCL seriously at all. The continuance of unauthorised IP

sets would seriously affect the KPTCL’s efforts to recover the stipulated charges from

IP set consumers. The Commission, therefore, directs KPTCL not to extend the dead

line beyond that already announced. Once the dead line is over, KPTCL must

proceed to disconnect all unauthorised IP set connections that exist beyond that

date. Unauthoirsed IP set connections represent theft of energy that needs to be

dealt with accordingly. KPTCL should report to the Commission latest by 31st March,

2001 confirming that all unauthorised IP sets have been disconnected.

9.2 Comments of KERC in Tariff Order 2002 (Page 59)

The Commission notes the steps taken for regularisation of IP sets in terms of the

GOK policy. Now that the period for regularisation as per that policy is over, the

Commission directs that unauthorised IP sets be disconnected and action taken

under the anti-theft law.



9.3 Replies of ESCOMs in the present Filing:


Unauthorized IP sets have been disconnected during regularization drive held

between March and April 2002. The dead line for regularization was extended by

the GoK upto June 30, 2002. The Vigilance Wing has been strictly instructed to

conduct raids to create awareness among the unauthorized IP sets owners and the

services of NSS volunteers is being availed in this regard.


Unauthorized IP sets have been disconnected during regularization drive held

between March and April 2002. The dead line for regularization was extended by

the GoK upto June 30, 2002. The Vigilance Wing has been strictly instructed to

conduct raids to create awareness among the unauthorized IP sets owners.

Vigilance Wing has prepared a plan of action for booking the cases under anti

theft low. Unauthorized IP sets are being regularized by following positive approach

of convincing the IP set owners of the provisions of Anti Theft Law.


As on November 30,2001 10, 465 unauthorised IP sets were identified. 10,315 IP sets

were regularised as on November 30,2001. Further, during the ATL drive, 22,987 IP

sets were regularised between March 11, 2002 and April 9, 2002 and 3069 IP sets

were regularized from April 10, 2002 to June 30, 2002. Vigilance activities are being

carried out on a regular basis to check all categories of consumers for unauthorised

abstraction of power. A number of cognisable and non-cognisable cases have

been booked and back-billed.


The GESCOM will further gear up its administrative and vigilance machinery for

disconnection of unauthorized IP set installations.

9.4 Comments of KERC:

It is learnt that the unauthorised IP Sets are coming up in large numbers in all the

ESCOMs even after the ATL came into force. The unauthorised IP Sets menace

should be dealt under the provisions of ATL. These unauthorised installations are

causing over loading of transformers, leading to transformer failures and large

interruptions.



10.0 Directives on Studies to Taken Up (Page No. 145 of Tariff Order 2000)

10.1 The directive was to take up studies on Cost of service, Paying capacity of

subsidised categories, Manpower study, and Census of IP sets.


KPTCL has given its comments on the methodology suggested by MECON in

respect of cost of service. They have been asked to propose a methodology that

should be adopted, in their opinion. However, the Commission has not received

any reply in this regard.

The results of the Studies on Paying capacity, Manpower study are yet to be

received by the Commission.

The copy of the report of the Survey conducted to identify open wells, bore wells,

defunct wells along with the study of no. of un-authorised IP sets said to have been

conducted by Dept. of Mines & Geology is yet to be submitted to the Commission.

In any event, the Commission had directed KPTCL to conduct the study based on

their own records. The total number of water sources identified by the Dept. of

Mines & Geology is much smaller than the number of even authorised IP

connections. Hence, reliance on such a survey defeats the very objective for which

the same has been ordered.

KPTCL survey should encompass the following information requirement:

i) No.of IP sets Transformer Centre-wise, O&M Section-wise, Sub-Division-wise along

with capacity, classifying the IP sets as bore wells, open wells, river bed, etc.

Unauthorized IP sets shall be identified.

ii) The survey should identify the transformer center, no.of IP sets connected to

transformer centers and identifying of the transformers and poles with distinct

codes.

KPTCL shall inform the Commission the Action Plan within two months.

10.3 Reply of KPTCL in the present filing

a) Cost of service : The report of M/s MECON on cost of service is examined in

depth and it is felt that further studies are required to determine the correctness of

certain parameters like load factor, co-incidence factor, etc. considered by the

Consultants. These issues are being discussed with the ESCOMs and the Consultants.



On a preliminary examination of the report submitted by the consultants M/s

MECON in this regard, it is observed that the data collected for the study report is at

variance with actuals. Further, it is also observed that the methodology adopted by

the Consultants in assuming peak load, load factor are not agreeable by KPTCL.

Hence, comments of ESCOMs are sought on this issue vide letter No.KPTCL/B-

36/D/4533/ 1377-80 dated 09-08-2002.

b) Paying capacity: It is learnt that the study has been completed by the

Consultants, M/s CMSR, Hyderabad. The draft report has been received and

reviewed by Energy Department of Government of Karnataka and comments have

been sent to the Consultants.

c) Man power study: Prior to unbundling of KPTCL, approval was given by the

Corporation to entrust study on this subject to M/s National Productivity Council

(NPC) and quotation was obtained. While the negotiations regarding terms of

reference of study were on, it was proposed to have sample study in couple of

Divisions in order to know the implications of the study to be taken up by NPC for

the entire Organisation. As NPC commenced its preliminary work of identifying the

sample offices, the unbundling of the distribution work of KPTCL was finalised and 4

new DISCOMs were formed with effect from 01-06-2002. M/s NPC was requested to

select sample offices of Bangalore Electricity Supply Company Limited and the

process of identification is completed. The Consultants have sought 8 weeks time

for sample study and 10-12 months for complete study of KPTCL and the 4 newly

formed ESCOMs.

In the meanwhile, it was understood that the ESCOMs desired to have their own

methodology of workload study and Manpower planning. The ESCOMs are

embarking on plans to outsource activities, which will have a major impact on

Manpower requirement. As the ESCOMs are desirous of taking up studies on

Manpower Planning independently, KPTCL has, in the changed scenario, decided

to set up an 'Internal workload study and Manpower requirement committee' to

finalise the Manpower requirement.


a)The study of the cost of service to each category of consumers was entrusted to

M/s. MECON, Bangalore and they have submitted the reports. The same has been

received on August 9, 2002. For the cost of service study expenses are classified into

demand, energy, and customer components based on principle of cost causation.

The costs, which vary with the KW demand imposed by the customers, are known

as demand costs and fixed in nature. Similarly, costs changing with the increase or

decrease in energy consumption are treated as variable costs. Customer costs vary

with number of customers. The above components categorized into fixed and

variable components are classified as demand and energy components. In the

absence of details in the respect of fixed and variable components, approximate



percentages will be used as assured. Regarding customer related expenditure like

billing and metering expenses will be estimated and allocated to respective

customer classes. The above report is under examination.

b) Paying capacity: - This study is entrusted to M/s. CMSR by KPTCL.

c) Manpower study: - We are yet to take up this study and are planning to

outsource various activities based on which the manpower requirement will be

finalized.

d) Census of IP sets to identify the number of existing IP sets under the category of

bore wells, open wells Nala, river etc. and also defunct wells.

It is proposed to outsource the above details since the O&M staff is pre-occupied

with many works, since the details obtained by the Mines & Geology Departments is

not acceptable to the Hon’ble Commission.

10.5 Comments of KERC on KPTCL reply

KPTCL has replied that ESCOMs are desirous of taking up the studies independently

and KPTCL has decided to set up internal workload study and manpower

requirement Committee to finalise the requirement of manpower. The schedule for

the same has not been furnished.

10.6 Comments of KERC on ESCOM replies:

There is no compliance with this directive.

The Commission has requested the GOK to outsource the study in respect of Cost of

Service to consultants.

The survey of IP sets as pointed out in Tariff Order 2000 and Tariff Order 2002, which

are long delayed is to be taken up and compliance reported to the Commission

within 3 months of this order.

The Commission has considered the M/s. CMSR report in this Order.

11.0 Directive on Street light metering:

11.1 While the water supply installations are already metered, the Commission

directs KPTCL to implement metering of the streetlight installations within a period of

one year.




Even though KPTCL was directed to meter all the streetlights within one year from

the date of Tariff Order 2000, KPTCL intends to take up metering as per Metering

Policy. As per Metering Policy, streetlights are expected to be completely metered

by FY04. KPTCL has scheduled to provide 16,000 meters in FY02. Details of the

actual progress are not available.


The directive would be implemented but more time is required for the

implementation as the KPTCL, which had taken up the responsibility of procurement

of meters, has not been able to do it so far. Action would be taken at the level of

ESCOMs hereafter to ensure timely procurement and installation of meters.

11.4 Comments OF KERC:

The directive is partially complied by GESCOM. The other ESCOMs are yet to start

the metering of streetlights.

12.0 Directive on Solar water Heaters (Page No. 131)

12.1 KPTCL is directed to conduct a detailed study to estimate the actual quantity

of benefit to the system as a result of installation of solar water heaters.

12.2 Comments of KERC inTariff Order 2002 (Page No. 64)

KPTCL has submitted a report the Study is limited to only Bangalore city. The study is

incomplete and is not completely in line with the directions of the Commission. The

purpose of the study directed by the Commission was to determine the extent to

which installation of solar water heaters contribute to reducing the peak demand

and the study should provide a scientific basis for any rebate to be given to the

consumers with solar water heaters. The focus of the study should be more on the

technical issues of the directives issued by the Commission.

12.3 Reply of ESCOMs:

This study report of M/s. PRDCL is furnished to the Commission.


The Commission notes the compliance with the directive.



13.0 Directive on billing of LT 4(c) category IP sets:

13.1 Commission notes that though the earlier LT-4(C) category pertaining to

private horticultural nurseries, coffee, tea, coconut and areca nut plantations were

required to be charged on a metered per unit basis, KPTCL does not appear to

have implemented metered billing. The Commission directs KPTCL to ensure full

implementation of metered billing in all cases ordered by the Commission.

13.2 Comments of KERC in Tariff Order 2002 (Page No.65)

This directive appears to have not been implemented.


13.3.1 Reply BESCOM:

There are 1823 private horticultural nurseries, Tea, Coconut and Arecanut

plantations earlier under LT 4(c) and now under LT 4(d) category and all these are

to be metered. This will be taken up on priority.

13.3.2 Reply of MESCOM: The task has been completed.

13.3.3 Reply of HESCOM: LT 4(c) metering is carried out.

13.3.4 Reply of GESCOM: The directions of the Hon’ble Commission have been

complied with.


While other ESCOMs have complied with the directive BESCOM is yet to initiate

action. The meters are to be read regularly and bills to be issued based on the

meter readings. Non-metering of this category of installations results in revenue loss.

14.0 Directive on IP sets under LT 4 (b)

14.1 The directed was to report to the Commission, within three months from the

date of the order, the number of consumers who have been classified as LT-4(b) in

terms of this order.


Though KPTCL has reported the identification of these customers, there has been no

confirmation from KPTCL so far about whether all such consumers have been billed

as per the LT-4 (b) tariff and whether the sums so billed have been recovered.





BESCOM has issued circulars to IP set consumers regarding self -declaration by the

farmers. Not all the consumers have returned the forms. A deadline was fixed to

obtain declarations before October 21,2002. As on the date of filing 406,183

numbers of declaration forms were issued, out of this only 1,21,856 numbers of

declarations forms have been received. It was found that 12,033 numbers of IP sets

could be classified under LT -4(b). Soon after the receipt of all the declaration,

necessary classification will be made and placed before the Hon’ble Commission.


MESCOM has issued circulars to 1,87,450 IP set consumers regarding self-declaration

by the farmers. Out of which 68,079 have been received back duly filled. Based on

the declaration in the form, 3,767 consumers have been classified under LT – 4(b).


HESCOM has issued circulars to IP set consumers regarding self -declaration by the

farmers. Not all the consumers have returned the forms. The exact numbers will be

known only after 31-12-2002 only.


As on date, 492 consumers have been categorized under LT4 (b). GESCOM has

instructed all the field officers to issue declaration forms to IP set owners. At the

same time, the field staff has been asked to contact Income Tax and Commercial

Tax deportment to obtain a list of Income Tax and Commercial Tax payees.

Identification of IP set owners who are employees of State and Central

Government department / undertaking etc., is also in progress. The GESCOM feels

that it would in near future be able to complete the process of metered billing for LT

-4 (c).

GESCOM has also introduced an incentive scheme for linemen /assistant linemen

to motivate them to identify consumers falling under LT -4(B) category. The scheme

provides for payment of Rs.10 per installation identified and classified as LT-4 (b).


The Commission feels that the identification of IP set consumers under LT 4(b) is not

properly handled by the ESCOMs. Necessary action is to be taken immediately and

billed accordingly



15.0 Directive on Remote meter reading of the 11KV feeder meters (Page No. 67 of

Tariff Order 2002):

15.1 The Commission has noted that there is no proper way of assessing the quality

of power supply at present. The Commission informed KPTCL during meeting held

on 12.10.2001 that since all the 11 kV feeders are installed with electronic load

survey meters, it should be possible to remotely read these meters to get the

parameters of numbers of hours of power supply and interruption, voltage, load,

etc., by installing modems, internet connections, etc. KPTCL has called for tenders

for this work. The Commission attaches great importance to this work and directs

KPTCL to complete the work in the shortest possible time.

15.2 Reply of KPTCL

There is a rethinking to incorporate SCADA features in the remote meter reading

mechanism and action is being taken accordingly.


KPTCL has been reporting differently on different occasions. Nothing has been

done to implement this directive. KPTCL is not committing a definite date for

implementation of the directive.

16.0 Directive on Time of the day metering (Page No. 99 of Tariff Order 2002):

16.1 Reply of KPTCL

Action is to be taken by the ESCOMs.


The directive is pending since December 00 and now KPTCL is stating that the

matter lies with the ESCOMs. The ESCOMs shall come up with the proposal within 3

months from the date of this Order.

17.0 Directive on Infrastructure Facilities to Installations regularised in the drive

before ATL: (Page No. 99 of Tariff Order 2002)

17.1 The Commission directs that infrastructure facilities for additional loads

regularised in regularisation drive in March-April 2002 before the ATL came into

force shall be brought on the system such as Changing of undersized conductor,

providing additional poles, installing additional transformers, installing meters to all

un-metered connections within six months.

17.2 Reply of ESCOMs: Nil




Even though KPTCL in the 2002 Tariff hearings had committed to complete the work

of metering and providing infrastructure to the regularised installations with in 3

months the Commission allowed another 3 months time. In spite of this the work is

not completed though the necessary cost towards development of infrastructure

especially from IP set consumers. This was pointed out in the public hearings by the

objectors. The Commission directs that the work shall be completed within 3 months

and compliance reported to the Commission.

Documents

Annexe - 4 Status Report on Compliance with Directives Electricity Regulatory Commission Tariff Order 2003 Annexe-4 : Compliance with Directives Page 318 Annexe - 4 Status Report on