1

-

BEFORE THE HIMACHAL PRADESH ELECTRICITY REGULATORY COMMISSION

AT SHIMLA

Filing No

Case No

IN THE MATTER OF:

Petition under Regulation 22 read with Regulation 24 of HPERC

(Recovery of Expenditure for Supply of Electricity) Regulations,

2012, issuance of directions qua rationalization of IDC charges

recoverable from consumers under HPERC (Recovery of Expenditure

for Supply of Electricity) Regulations, 2005.

And

IN THE MATTER OF

Himachal Pradesh State Electricity Board Ltd., Kumar House, Shimla-4

Petitioner

Petition under Regulation 22 read with Regulation 24 of HPERC (Recovery of

Expenditure for Supply of Electricity) Regulations, 2012, issuance of directions

qua rationalization of IDC charges recoverable from consumers under HPERC

(Recovery of Expenditure for Supply of Electricity) Regulations, 2005.

INDEX

Sr. No. Document Page

1 Main Petition 1-8

2 Affidavit 9'

3 Annexure-A – HPERC (Recovery of Expenditurefor Supply of Electricity)Regulations, 2005

Annexure-B- HPSEBL letter No.HPSEB/CE(Comm.)/LS-CostSharing/2005-13945-14245 dated

10-14

15

03.10.2005Annexure-C- HPSEBL letter No. 16-17

HPSEB/CE(Comm.)/SE RC-CostSharing/2007-17255-57 dated11.12.2007

6 Annexure-D- HPSEBL petition dated 18-2310.03.2009

Annexure-E- Hon'ble HPERC order dated 24-25

16 05-2009

y,8 Annexure-F- Hon,ble HPERC notification No. 26-28HPERC/390-09 dated 26.05.2009kClause No. 3 2)

9 Annexure-G- HPSEBL letter No. 29HPSEB/CE(Comm.)/LS-General/2010-765 dated08.04.20111

10 Annexu re-H- Hon'ble Commission order dated 30-3602.05.2011

11 Annexure-I- Hon'ble Commission order dated03.03-2012

37-38 p1̂ yan6,41'

er1 11nimm1

gxtGngt^a

k8^'aaC^t6Mwan,ltpTt y

...

vtS{

>'

12

13

14

15

16

17

19

18

Annexure-J- HPSEBL letter No.

39

HPSEB/CE(Comm.)/Misc.-

IDC/2012-22835-42 dated

29.032012

Annexure-M- HPSEBL letter No.

53

HPSEB/CE(Comm.)l Misc.-

IDC/2012-16509-574 dated

07.12.2012

Annexure-N- List of cases regarding IDC filed

54-57

by the consumers in various

courts.—

Annexure-0- Hon'ble Commission notification

No HPERC/419 dated

18.05.2012

Annexure-P- Hon'ble Commission order dated30.04.2013

Annexure-Q- Financial implications for

adjustment of amount in ARR.

ao

nginc

Comi.)IRC)

Vtdyut 8howan, HPSES Ltd.ShI mla-{

Annexure-K- HPSEBL letter No.HPSEBL/CE(Comm.)/IDC-SERC/2011-14314-24 dated

20.10.2012

Annexure-L- Hon'ble Commission order dated

27.11.2012

40

41-52

58-66

67-82

83-87

BEFORE THE HIMACHAL PRADESH ELECTRICITY REGULATORY COMMISSION ATSHIMLA

Filing No

Case No

IN THE MATTER OF:

Petition under Regulation 22 read with Regulation 24 of HPERC

(Recovery of Expenditure for Supply of Electricity) Regulations, 2012,

issuance of directions qua rationalization of IDC charges recoverable

from consumers under HPERC (Recovery of Expenditure for Supply of

Electricity) Regulations, 2005.

And

IN THE MATTER OF:

Himachal Pradesh State Electricity Board Ltd., Kumar House, Shimla-4

Petitioner

Petition under Regulation 22 read with Regulation 24 of HPERC (Recovery of

Expenditure for Supply of Electricity) Regulations, 2012, issuance of directions qua

rationalization of DC charges recoverable from consumers under t-IPERC (Recovery

of Expenditure for Supply of Electricity) Regulations, 2005.

Respectfully Showeth,

1. That the Hon'ble Commission had framed the regulations called as I-IPLRC

(Recovery of Expenditure for Supply of Electricity) Regulations, 2005 (Annexure-A)

on dated 1.4.2005 in accordance with the power conferred in Section 46 read with

section 181 of the Electricity Act,2003. The said regulations were implemented by

HPSEBL from the date of notification in the Rajpatra i.e. 4.4.2005.

2. That l-IPSEBL had issued a letter for recovery of expenditure per kVA of feeding

sub-stations vide letter No. FIPSEB/CE(Comm)/LS-Cost Sharing/2005-13945-14245

dated 3.10.2005 (Annexure-B) in pursuance of the provisions of HPERC (Recovery

of Expenditure for Supply of Electricity) Regulations, 2005. The Hon'ble Commission

in case No. 268/05,334105 and case No. 4/2006 held the above letter void abinitio

Art:.

and struck down the letter issued by I-IPSEBL on dated 3.10.2005. However, in

^^' l r-2 % P 'Sresponse to the Board's affidavit submitted in case No. 268/05 & 334/05, the

f30V0 3 1-lon'ble Commission had orderd that the Board shall estimate again and recover the

justifiable cost strictly in accordance with the regulations based on the cost data

published for relevant years by REC/PFC.

3. That in accordance with the above, instructions had been issued to all the field units

vide letter No. HPSEB/CE(Comm.)/SERC-Cost Sharing/2007-17255-57 dated

s_.

11.12.2007 (Annexure-C) to recover the infrastructure charges through detailed-be.

"v _ `cc estimates to the industrial consumers to whom the connections have been alreadyo+ 3

\. ^ \ 1released/ to be released in accordance with the above regulations and cost data

approved by the Hon'ble Commission for the relevant years.

4. That HPSEBL had filed a petition on 10.3.2009 (Annexure-D) regarding removal of

difficulties in implementation of the Recovery of Expenditure for Supply of Electricity,

Regulations,2005 and made submission to the Hon'ble Commission for approval of

per kVA rate on uniform basis throughout the State which was not admitted by the

Hon'ble Commission as per order dated 16:5.2009 (Annexure-E). In the conclusion,

it was mentioned that however, the Commission shall,after calling for the comments

of the stakeholders including M/s Paiwanoo Industrial Association, M/s

Confederation of Indian Industries Northern Region and M/s Rupana Mills and also

after calling public objections, be at liberty to explore the possibilities for

amendments in the regulations with prospective effect, as would be admissible

under law.

5. That Hon'ble Commission vide notification No. HPERC/390-09 dated 26.5.2009

(Annexure-F) which was published in the Rajpatra, HP on 29.5.2009, notified I-1.R

Electricity Supply Code, 2009 which provides for advance cost share towards

infrastructure development charges @ Rs. 1000 per kW/kVA to be deposited at the

time of issuance of PAC to the consumer and to be adjusted against Recovery of

Expenditure for Supply of Electricity) Regulations, 2005 at the time of

sanction/release of load. HPSEBL, vide letter No. HPSEB/CE(Comm.)/LS-

General/2010-765 dated 08.04.2011 (Annexure-G), had requested for clarification

on adjustment of the advance cost share against Recovery of Expenditure for

Supply of Electricity) Regulations,2005. Hon'ble Commission vide order dated

02.05.2011 (Annexure-H) issued detailed clarificatory orders on the adjustment of

Advance IDC.

6. That the recovery of expenditure for supply of electricity, based on the per kVA cost

of the feeding sub-station as per provisions of regulation. was being recovered from

ATTE7 ED the consumers. However, M/s BBN Industries Association filed a petition before

polio

Hon'ble Commission against the per kVA Sub-station wise recovery on the pretext

Govt t%r.r ' sr?rn'

that there is a large gap in the per kVA rate in different sub-stations in the area.

7. That Hon'ble Commission on dated 3.3.2012 (Annexure-l) passed the order on

petition No. 3 of 2012 which is reproduced as under:-

a) The Commission has already published the draft regulations, to modify

the HPERC(Recovery of Expenditure for Supply of Electricity)

Regulations: 2005, for inviting the public objections/suggestions thereon ,

as envisaged vide sub-section (3) of section 181 of the Electricity

Act,2003. The petitioners are, therefore, advised to file their objections

and suggestions accordingly, so that before finalising the proposed

regulations objections/suggestions , to be giver? by the petitioners, may be

taken into consideration;

b) the matter relating to the implementation of the Recovery of Expenditure

for Supply of Electricity regulations and the rationalisation of the clef nands

raised for recovery of the infrastructure development charges needs to be

addressed through the infra parties discussions in the first instance. Both

the parties have expressed their intention to do so. The parties are,

therefore, asked to sort out the issues involved through their mutual

discussions, and if the matter still remains unresolved, the petitioners Quill

be at the liberty to approach this Commission and seek the appropriate

remedy as permissible under the law.

8. That based on the order dated 3.3.2012 and after consulting the stakeholders, a

uniform rate of IDC, at different voltages was worked out and accordingly intimated

to field units of HPSEBL, BBNIA and Hon'ble Commission vide letter No.

HPSEB/CE(Comm.)/Misc-IDC/2012-22835- 42 dated 29.3.2012 (Annexure-J).

9. That the uniform rate per kVA was challenged by Himachal Chamber of Commerce,

Paonta Shahib, Kala Amb Chamber of Commerce, Kala Amb and Nalagarh

Industries Association, Nalagarh vide petition No. 8212012, 8812012 & 122/2012

respectively, before the Hon'ble Commission. The recovery of IDC per kVA on

uniform basis was deferred by HPSEBL and during the course of hearing, HPSEBL

was asked to workout sub-station wise per kVA cost of IDC. Accordingly, High

Power Committee was constituted under Chairmanship of Director(Finance) with

Director(Tech.), Director(Operation), CE(Comm.) as its members and

Dy.CE(Comm.) as Member Secretary vide letter No. HPSEBLICE(Comm.)/IDC-

SERC/2011-14314-24 dated 20.10.2012 (Annexure-K) to finalise the per WA

charges for the works executed between 1.4.2005 to 22.5.2012 and to finalise the

reply of the petitions filed before Hon'ble High Court and HPERC. The sub-station

wise cost of EI IV Sub-Stations was filed before Hon'ble Commission on 30.10.2012.

The final order was issued by Flon'ble Commission on 27.11.2012 (Annexure-L),

'T i a) the extract at Sr. No. 10, 11 and 12 of the order is reproduced as under:-

Sr. No. 10 Pursuance to the directions, as stated in preceding para 9, the,rlrr,,l_IC !' Fr i

Gov ; respondent Board now submits that it has, after due deliberations in the High Power

Committee constituted for the purpose, examined all the relevant infrastructure

created, from time to time, and has reworked the charges on the basis of the

information collated and has verified and reconciled the details of costs of various

works executed and it has now finalised the voltage wise per k VA charges in

conformity with the applicable regulations.

I1. Keeping in view the fact that the respondent Board is reviewing its demands

o

and that it has assured to make the said demands in conformity with the statutory

43, dprovisions i.e. the provisions of the Act and regulations framed there under, they d

t r'' .\FJ

i^^^oCommission vacates the interim order, deferring the impugned recoveries, passed

Ni°F e;, ;during the proceedings before it.

6)

IAr TESjTEO

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GOVT C; = ;..

12. It is noticed that the nature of the dispute is between the licensee and a

consumer, for which the Electricity Act, 2003 stipulates an adjudicatory body in the

form of the Consumers Grievances Redressal Forum set up under section 42 of the

Act. The Ombudsman is yet another Forum which can be approached in case of the

Consumers Grievances Redressal Forum does not satisfy the consumer There is no

provision in the Act which gives the Commission jurisdiction to settle such disputes.

The Commission, therefore, declines to entertain these petitions. If the petitioners

still feel aggrieved by the action of the respondent Board, the petitioners will be at

liberty to approach the appropriate Forum set up for the resolutions of such

disputes.

10 That in pursuance of the order dated 27.11.2012, since HPSEBL had already filed

the per WA rates worked out as per regulation to the Hon'ble Commission, I-IPSEBL

vide letter No. HPSEBICE(Cornm.)/Misc-IDC/2012-16509-574 dated 7.12.2012

(Annexure-M) has withdrawn the earlier order dated 29.3.2012 and issued

directions to all the field units to recover the per kVA IDC charges as per Annexure-

1 in respect of the EHV sub-stations and to work out the IDC per kVA of 33/11 kV.

sub-station and other supply voltages as per Recovery of Expenditure for Supply of

Electricity, Regulalions,2005 and to recover the same accordingly with copy to the

petitioner and Hon'ble HPERC.

11. That HPSEBt. is in the process of recovery of the IDC and has issued notices to

various consumers for recovery of the same. The recovery of IDC charges is being

agitated by the various consumers /associations in Hon'ble High Court/

FRGC/Ombudsman and even in Appellate Tribunal for Electricity. The details of

some of the such cases filed are enclosed at Annexure-N.

Some of the consumers are opposing the recovery of IDC, once the connection has

been released and others are opposing the high rates of IDC. The industrial

associations like BBNIA, Kala Amb Chamber of Commerce etc. are also opposing

the high rates of IDC and relating the same with normative IDC charges and

different rates of IDC charges area-wise.

12.That Hon'ble Commission vide notification No. HPERC/419 dated 18.5.2017

(Annexure-O) notified HPERC (Recovery of Expenditure for Supply of Electricity)

o^^t

Regulations, 2012 which was published in the Rajpatra, H.P. on 23.5.2012. As per

a1/

Regulation 25 of HPERC (Recovery of Expenditure for Supply of Electricity)I

, ),s 1. :-. -Regulations,2012, the HPERC (Recovery of Expenditure for Supply of Electricity)

^ir Regulations, 2005 has been repealed with following conditions:-C^ p,

1

ArrE T'Co

( i )

(ii)Knit

a•9»' /wVT 0;- ri r s ,,,,;L

(iii)

(iv) For the balance contract Rs.2000/- per kVA (or part thereof)demand, if any,

by which the contract demandexceeds 100 WA.

14.That the per WA rates have been worked out by HPSEBL as per provisions of

HPERC(Recovery of Expenditure for Supply of Electricity) Regulations,2005 as per

provisions of regulation 3 which is reproduced as under:-

For the first 30 WA of

Rs.300/-per kVA (or part thereof) ofcontract demandthe contract demand.For the next 20 kVA of the Rs.500/- per kVA (or part thereof)contract demand

by which the contract demandexceeds 30kVA

For the next 50 kVA of the Rs.1,000/- per kVA (or part thereof)contract demand

by which the contract demandexceeds 50kVA

(a) anything done or any action taken or purported to have been done or taken

including any appointment made or any document or instrument or any direction

given under the repealed regulations, shall be deemed to have been done,

taken, made or given or purported to have been done, taken made or given

under the corresponding provisions of these Regulations; and

(b) all orders made and documents executed before the commencement of these

Regulations, shall continue to apply for the period for which such order has been

made or the document has been executed.

13.That Hon'ble HPERC vide order dated 30-4-2013 (Annexure-P) has notified thefollowing normative infrastructure development charges on per kW/kVA basis as perRegulation 14 of HPERC(Recovery of Expenditure for Supply of Electricity)Regulations,2012

a) Normative rates of Infrastructure Development Charges forapplicants under single part tariff.

(i)

For domestic supply to BPL

Nilfamilies upto 5 kW ofconnected load

(n)

For others (not covered in (i) above)(a)For the first 5 kW

Rs. 50/-per kW (or part thereof)of connected load

-(b) For the next 5 kW of Rs.100/- per kW (or part thereof)connected load

by which the connected loadexceeds 5 kW

(c) For

the

balance Rs.250/- per kW (or part thereof)connected load in excess by which the connected loadof 10 kW

exceeds 10 kW.b) Normative rates of Infrastructure Development Charges forapplicants under two part tariff.

Cost of the works of erection of distribution transformer (DTR)/Power = P

Transformer including the cost of switch-gear and transformer

(in rupees)

Rated capacity of DTR (kVA)

Cost per k VA (in rupees)

The cost of the works has been taken from the actual expenditure for the execution

of works. There is no question for working out the per kVA cost in case of the works

done specifically to a consumer or group of consumers on deposit work i.e. new

sub-station or augmentation of sub-station specifically done to a consumer for

supply of electricity such as supply to I&PH Deptt. / supply of construction power

for HEP.

15.That the difficulty in implementation of recovery of expenditure in respect of

repealed regulations of 2005 has arisen on account of following:-

The per kVA cost of new sub-station is more than the augmentation of old

sub-station as the associated works of line and land development is also

included in the expenditure. The per kVA cost of IDC in the same area is

different and the consumers are objecting to it or trying to get connection

from the sub-station which is having low per kVA IDC.

The old regulations, now repealed, does not provide scope for diversity of

loads but provide for refund of the amount to the consumer after recovery of

cost from other consumers on pro-rata basis in case the entire cost has been

borne by one consumer or group of consumers. Almost all the sub-stations

have been created /augmented taking into consideration the load growth in

the area.

iii) The per kVA cost of IDC for the same sub-station created between 4.4.2005

and 22.5.2012 (i.e. in the period of regulation 2005) is different in the old

regulation and new regulations of 2012. Comparison of rates of some of the

sub-stations are as under:-

Per kVA rate (Rs.)- Per WA rate (Rs.) I

in case of HPERC in case of HPERC

regulations 2005

regulations 2012

(normative rates)

1 132/33 kV, Gagret 4381.25 2000

33/11 kV, ]assure 3660.00 x2000

3 220/66 kV, Nalagarh 3094.00 2000

d 66/33 kV, Nalagarh 3562.50 2000C 4.

66/33 kV, Akkanwali 5595.00 2000

6 66/11 kV, Davni

1 3717.50 2000

et 'A

The consumes are aggrieved about such a difference in rates of IDC for

existing and old consumers to whom the connections have been released before the

^(^

commencement of new regulations i.e. 23.5.2012 and rates applicable to new

^=

consumers to whom connections have been released w.e.f. 23.5.2012. The various

ArT'=f" \ED

cwr c: , ,.

:42

Nam- e of Sub-StationSr.

No.

industrial associations/ groups are constantly raising this issue and have requested

that consumers covered under the 2005 Regulations may also be charged a

common/ uniform IDC rate, so as to bring about industrial development in new

areas and reduce the entry barrier created by very large IDC rates in new sub-

stations. This is also affecting industrial proliferation in new industrial areas.

16. That HPSEBL had worked out the sub-station wise per kVA as per provisions of

HPERC(Recovery of Expenditure for Supply of Electricity) Regulations,2005.

17. That under regulation 22 of HPERC(Recovery of Expenditure for Supply of

Electricity) Regulations, 2012, the Hon'ble Commission has power to remove

difficulties and under Regulation 24 of these regulations, the Hon'ble Commission

has inherent powers to issue orders, as reproduced below :-

22. Power to remove difficulties.- If any difficulty arises in giving effect to

any of the provisions of these regulations, the Commission may, suo motu or on an

application, by general or special order, take suitable action or direct the distribution

licensee to take such suitable action not being inconsistent with the Act which, in

the opinion of the Commission, is necessary or expedient for removing such

difficulties.

24, Inherent power of the Commission.-(I) Nothing in these Regulations

shall be deemed to limit or otherwise affect the inherent powers of the Commission

to make such orders as may be necessary for meeting the ends of justice or to

prevent the abuse of the process of the Commission.

(2) Nothing in these Regulations shall bar the Commission from adopting a

procedure, which is at variance with any of the provisions of these regulations, if

the Commission, in view of the special circumstances of a matter or class ofmatters

and for reasons to be recorded, in writing, deems it necessary or expedient.

(3) Nothing in these Regulations shall, expressly or impliedly, debar the

Commission to deal with any matter or exercise any power under the Act for which

no regulations have been framed and the Commission may deal with such matters,

powers and functions in a manner it thinks fit

18. The HPSEBL, taking cognizance of the persistent demand by the various industrial

associations has agreed to a common/ uniform IDC rate to be charged from old

consumers covered by the 2005 Regulations and recover the balance amount

through ARR. However, since a section of the consumers have already paid the IDC

as per rates of respective sub-station, any common rate now approved, would

necessitate refund of the differential IDC, therefore, various options of alternate

rates of IDC per kVA has been tentatively worked out, based on the data received

from the field units and corresponding financial implications involved for refund

(()

/adjustment of amount in ARR recoverable from the industrial category consumers

is as per details enclosed at Annexure-Q. The brief summary is as under:-

Amount to be

passed to ARR

(Rs./Cr.)

2

Rs. 2500/-

89.00

73.25

115.76

Rs.3000/-

89.00

87.92

1.08

Prayer

It is, therefore, respectfully prayed that this Hon'ble Commission may

kindly be pleased:-

i) To decide and approve common rate of per kVA IDC charges to be

recovered from the consumers covered under HPERC(Recovery of

Expenditure for Supply of Electricity) Regulations,2005 w.e.f. 4.4.2005

to 22.5.2012, except for the works done on deposit and exclusive for a

specific consumer or for a group of consumers, by involving the

provisions of Regulation 22 read with Regulation 24 of the HPERC

(Recovery of Expenditure for Supply of Electricity) Regulations, 2012.

To pass the difference of amount of actual per kVA cost of each sub-

station and the now approved common rate per kVA through tariff to

the industrial category of consumers while approving the ARR for FY

2015-16.

iii)

To issue further directions /orders as the Hon'ble Commission may

deem fit.

Petitiongr ^,pj

SuperiNand}pi Enginber(SERC),

010 Chief Enginear(Comm.) .r'

Vtdyut Ehuwan, HPSED LII.

ShImIa4

Sr.

No.

Alternate

Amount of IDC j Amount of IDC

rates of per as per sub- as

per

kVA IDC

station –wise alternate rates

(Rs.)

per WA rates

@ Col No. 2

(Rs./Cr.)

(Rs./Cr.)

3

j 4

5

89.00

61.56

27.44

2

Rs. 2100/-

Dated: LI -

S

BEFORE THE HIMACHAL PRADESH ELECTRICITY REGULATORY COMMISSION AT

SHIMLA

Filing No

Case No

IN THE MATTER OF

Petition under Regulation 22 read with Regulation 24 of HPERC

(Recovery of Expenditure for Supply of Electricity) Regulations, 2012,

issuance of directions qua rationalization of IDC charges recoverable

from consumers under HPERC (Recovery of Expenditure for Supply of

Electricity) Regulations, 2005.

.

And

Petition under Regulation 22 read with Regulation 24 of HPERC (Recovery of

Expenditure for Supply of Electricity) Regulations, 2012, issuance of directions qua

rationalization of IDC charges recoverable from consumers under HPERC (Recovery

of Expenditure for Supply of Electricity) Regulations, 2005.

AFFIDAVIT

I, Er. K.L. Gupta, S/o Sh. Devi Ram Gupta aged about 53 years, resident of

Set no. 2, Top Floor, Ganga Bhawan, Shankli, Shimla-171001, occupation Superintending

Engineer (SERC & Tariff), HPSEB Ltd., Vidyut Bhawan, Shimla-171004, do hereby

solemnly affirm and declare that I have gone through the contents of the accompanying

reply and that the contents of the same are true and correct to the best of my personal

knowledge belief and have been derived from the official record.

I, further solemnly affirm and verify that the contents of this affidavit are true

f-

l--

Verified and signed at Shimla on this `} FDF j day of _o\S

DEPONENT

Superin ending Ehgtneer(3ERe),°ciE'v

p'oC tuefEnginrsr(Canm.) .1'1.5. _

mrr,.,,

r/ yNyut8havran,Hp 3EfilIL

c

a

7-'

A

IN THE MATTER OF:

Himachal Pradesh State Electricity Board Ltd., Kumar House, Shimla-4 .

-- Petitioner

4 :^;/ / and correct to the best of my personal knowledge, no part of it is false and nothing material

has been concealed therein.

CAI '\2t new

I.

Annexure

Annexure-A Annexure-B Annexure-C Annexure-D Annexure-E

Annexure-F Annexure-G Annexure-H Annexure-I Annexure-J

Annexure-K Annexure-L Annexure-M Annexure-N Annexure-O

Annexure-P Annexure-Q