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KARNATAKA ELECTRICITY REGULATORY COMMISSION
TARIFF ORDER 2016
OF
BESCOM
ANNUAL PERFORMANCE REVIEW FOR FY15
&
ANNUAL REVENUE REQUIREMENT FOR FY17-19
&
REVISION OF RETAIL SUPPLY
TARIFF FOR FY17
30th
March 2016
6th and 7th Floor, Mahalaxmi Chambers
9/2, M.G. Road, Bengaluru-560 001
Phone: 080-25320213 / 25320214
Fax : 080-25320338
Website: www.karnataka.gov.in/kerc - E-mail: [email protected]
ii
C O N T E N T S
CHAPTER
Page No.
1.0 Bangalore Electricity Supply Company Ltd.-
(BESCOM):
3
1.1 BESCOM at a glance 5
1.2 Number of Consumers, Sales in MU to various
categories of consumers and details of Revenue
for FY15 as filed by BESCOM
6
2 Summary of Filing & Tariff Determination Process
7
2.0 Background for Current Filing 7
2.1 Preliminary Observations of the Commission 7
2.2 Public Hearing Process 8
2.3 Consultation with the Advisory Committee of the
Commission
9
3.0 Public Consultation Suggestions / Objections
and Replies
10
3.1 List of Persons who filed written objections 10
4 Annual Performance Review for FY15 15
4.0 BESCOM’s Application for APR for FY15 15
4.1 BESCOM’s Submission 15
4.2 BESCOM’s Financial Performance as per Audited
Accounts for FY15
17
4.2.1 Sales for FY15 18
4.2.2 Distribution Losses for FY15 27
4.2.3 Power Purchase for FY15 28
4.2.4 RPO Compliance by BESCOM for FY15 31
4.2.5 Operation and Maintenance Expenses 32
4.2.6 Depreciation 36
4.2.7 Capital Expenditure for FY15 38
4.2.8 Prudence Check of Capex for FY15 43
4.2.9 Review of decision taken on Prudence Check of
Capital Expenditure incurred during FY13 to FY14
45
4.2.10 Interest and Finance Charges 46
4.2.11 Interest on Working Capital 48
4.2.12 Interest on Consumer Deposits 50
4.2.13 Other Interest and Finance Charges 50
4.2.14 Capitalisation of Interest and other expenses 51
4.2.15 Other Debits 51
4.2.16 Net Prior Period 52
4.2.17 Return on Equity 53
4.2.18 Income Tax 54
4.2.19 Other Income 55
4.2.20 Fund Towards Consumer Relations / Consumer
Education
56
iii
4.3 Abstract of Approved ARR for FY15 56
4.3.1 Gap in Revenue for FY15 57
4.3.2 Previous Years Gap 58
5 Annual Revenue Requirement for FY17-19 59
5.0 Annual Revenue Requirement for FY17-19 59
5.1 Annual Performance Review for FY15 & FY16 60
5.2 Annual Revenue Requirement for FY17-19 61
5.2.1 Capital Investments for FY17-19 61
5.2.2 Sales Forecast for FY17-19 67
5.2.3 Distribution Losses for FY17-19 82
5.2.4 Power Purchase for FY17-19 83
5.2.5 Sources of Power 85
5.2.6 Power Purchase Cost & Transmission charges 89
5.2.7 RPO Target for FY17 93
5.2.8 O & M Expenses for FY17-19 94
5.2.9 Depreciation 99
5.2.10 Interest on Loans 101
5.2.11 Interest on Working Capital 104
5.2.12 Interest on Consumer Deposit 105
5.2.13 Other Interest and Finance Charges 107
5.2.14 Interest and other expense Capitalized 107
5.2.15 Return on Equity 108
5.2.16 Other Income 110
5.2.17 Fund towards Consumer Relations / Consumer
Education
111
5.3 Treatment of Regulatory Asset and Carrying Cost 111
5.4 RP No.5/2014 and RP No.6/2013 113
5.5 Abstract of ARR for FY17-19 113
5.6 Segregation of ARR into ARR for Distribution
Business and ARR for Retail Supply Business
114
5.7 Gap in Revenue for FY17 116
5.8 Application for Additional Revenue Requirement
for FY17
117
6 Determination of Tariff for FY17 120
6.0 BESCOM’s Proposal and Commission’s Analysis
for FY17
120
6.1 Tariff Application 120
6.2 Statutory Provisions guiding determination of
Tariff
120
6.3 Consideration for Tariff setting 121
6.4 New Tariff Proposals by BESCOM 122
6.5 Revenue at existing tariff and deficit for FY16 126
6.6 Other Issues 160
6.6.1 Tariff for Green Power 160
6.6.2 Determination of Wheeling Charges 160
6.6.3 Wheeling within BESCOM Area 162
6.6.4 Wheeling of Energy using Transmission Network
or Network of More than one licensee
163
6.6.5 Charges for Wheeling of Energy by RE sources
(Non-REC Route) to Consumers in the State
164
iv
6.6.6 Charges for Wheeling Energy by RE sources
wheeling Energy from the State to A
consumer/others outside the State and for those
opting for Renewable Energy Certificate
164
6.7 Other Tariff related issues 165
6.8 Cross Subsidy levels for FY17 169
6.9 Effect of Revised Tariff 169
6.10 Summary of Tariff Order 170
6.11 Commission’s Order 171
Appendix 172
Appendix - 1 218
v
LIST OF TABLES
Table
No.
Content Page
No.
4.1 ARR for FY15 – BESCOM’s Submission 16
4.2 Financial Performance of BESCOM for FY15 17
4.3 BESCOM’s Accumulated Profit / Losses 18
4.4 Category wise Breakup of Unbilled Sales for FY15 20
4.5 Approved and Actuals Sales for FY15 26
4.6 Penalty for exceeding approved distribution losses in
FY15
28
4.7 BESCOM’s Power Purchase for FY15 28
4.8 RPO Compliance as submitted by BESCOM for FY15 31
4.9 Normative O & M Expenses – BESCOM’s Submission
32
4.10 Approved O & M Expenses as per Tariff Order dated
12.05.2014
33
4.11 O & M Expenses of BESCOM as per Audited Accounts
for FY15
33
4.12 Allowable O & M Expenses for FY15 36
4.13 Depreciation for FY15 – BESCOM’s Submission 37
4.14 Allowable Depreciation for FY15 37
4.15 Capital Expenditure for FY15 38
4.16 Details of Excess Expenditure over approved capex
for FY15
39
4.17 Approved and Actual Capex incurred 42
4.18 Summary of Prudence check findings for FY15 44
4.19 Summary of Works having cost overrun 44
4.20 Summary of Works having Time overrun 44
4.21 Interest on Loans – BESCOM’s Submission 47
4.22 Allowable Interest on Loans – FY15 47
4.23 Interest on Working Capital – BESCOM’s Submission 48
4.24 Allowable Interest on Working Capital for FY15 49
4.25 Interest on Consumer Deposits for FY15 – BESCOM’s
Submission
50
4.26 Allowable Interest and Finance charges 51
4.27 Other Debits – BESCOM’s Submission 51
4.28 Allowable Other Debits 52
4.29 Net Prior Period Charges – BESCOM’s Submission 52
4.30 Return on Equity – BESCOM’s Submission 53
4.31 Allowable Return on Equity 54
4.32 Other Income – BESCOM’s Submission 55
4.33 Approved ARR for FY15 as per APR 56
5.1 Proposed ARR for FY17-19 59
5.2 DPR Preparation and Sanctioning by REC for the
DDUGJY Projects
62
5.3 Capital Investment Proposed for FY17 to FY21 by
BESCOM
63
vi
5.4 Category wise approved number of installations 80
5.5 Category wise approves sales 81
5.6 Projected Distribution Losses FY17-19 – BESCOM’s
Submission
82
5.7 Approved & Actual Distribution Losses FY10 to FY16 82
5.8 Approved Distribution Losses for FY17-19 83
5.9 Requirement of Electricity s filed by Licensees 84
5.10 Energy Requirement as filed by BESCOM 84
5.11 Power Purchase requirement allowed for the Control
Period FY17 to FY19
85
5.12 Consolidated power purchase requirement for FY17 85
5.13 Consolidated power purchase requirement for FY18 86
5.14 Consolidated power purchase requirement for FY19 87
5.15 Abstract of Power Purchase allowed for ESCOMs for
the Control Period FY17 to FY19
89
5.16 Power Purchase Cost of BESCOM for FY17 91
5.17 Power Purchase Cost of BESCOM for FY18 92
5.18 Power Purchase Cost of BESCOM for FY19 92
5.19 O & M Expenses – BESCOM’s Proposal 95
5.20 Computation of Inflation Index for FY17 97
5.21 Approved O & M Expenses for FY17-19 98
5.22 Depreciation – FY17-19 – BESCOM’s Submission 99
5.23 Approved Depreciation for FY17-19 101
5.24 Interest on Loan – BESCOM’s Proposal 102
5.25 Approved Interest on Loans for FY17-19 103
5.26 Interest on Working Capital – BECOM’s Submission 104
5.27 Approved Interest on Working Capital for FY17-19 105
5.28 Interest on Consumer Deposits – BESCOM’s Submission 106
5.29 Approved Interest on Consumer Security Deposits for
FY17-19
106
5.30 Approved Interest and Finance Charges for FY17-19 107
5.31 Status of Debt Equity Ratio for FY17-19 109
5.32 Approved Return on Equity for FY17-19 109
5.33 Other Income - BESCOM’s Proposal 110
5.34 Approved ARR for FY17-19 113
5.35 Segregation of ARR – BESCOM’s Submission 114
5.36 Approved Segregation of ARR FY17-19 115
5.37 Approved Revised ARR for Distribution Business FY17-
19
115
5.38 Approved ARR for Retail Supply Business FY17-19 116
5.39 Revenue Gap for FY17 116
6.1 Revenue Deficit for FY17 127
6.2 Wheeling Charges 162
vii
LIST OF ANNEXURES
SL.NO. DETAILS OF ANNEXURES Page
No.
I Total Approved Power Purchase Quantum and Cost
of all ESCOMs for FY17
263
II Approved Power Purchase quantum and cost of
BESCOM for FY17
269
III Proposed and approved Revenue for FY17 275
IV Electricity Tariff – 2017 276
viii
ABBREVIATIONS
AAD Advance Against Depreciation
AEH All Electric Home
ABT Availability Based Tariff
A & G Administrative & General Expenses
ARR Annual Revenue Requirement
ATE Appellate Tribunal for Electricity
BBMP Bruhut Bangalore Mahanagara Palike
BDA Bangalore Development Authority
BESCOM Bangalore Electricity Supply Company
BMP Bangalore Mahanagara Palike
BST Bulk Supply Tariff
BWSSB Bangalore Water Supply & Sewerage Board
CAPEX Capital Expenditure
CCS Consumer Care Society
CERC Central Electricity Regulatory Commission
CEA Central Electricity Authority
CESC Chamundeshwari Electricity Supply Corporation
CPI Consumer Price Index
CWIP Capital Work in Progress
DA Dearness Allowance
DCB Demand Collection & Balance
DPR Detailed Project Report
EA Electricity Act
EC Energy Charges
ERC Expected Revenue From Charges
ESAAR Electricity Supply Annual Accounting Rules
ESCOMs Electricity Supply Companies
FA Financial Adviser
FKCCI Federation of Karnataka Chamber of Commerce & Industry
FR Feasibility Report
FoR Forum of Regulators
FY Financial Year
GESCOM Gulbarga Electricity Supply Company
GFA Gross Fixed Assets
GoI Government Of India
GoK Government Of Karnataka
GRIDCO Grid Corporation
HESCOM Hubli Electricity Supply Company
HP Horse Power
HRIS Human Resource Information System
ICAI Institute of Chartered Accountants of India
IFC Interest and Finance Charges
IW Industrial Worker
ix
IP SETS Irrigation Pump Sets
KASSIA Karnataka Small Scale Industries Association
KEB Karnataka Electricity Board
KER Act Karnataka Electricity Reform Act
KERC Karnataka Electricity Regulatory Commission
KM/Km Kilometre
KPCL Karnataka Power Corporation Limited
KPTCL Karnataka Power Transmission Corporation Limited
KV Kilo Volts
KVA Kilo Volt Ampere
KW Kilo Watt
KWH Kilo Watt Hour
LDC Load Despatch Centre
MAT Minimum Alternate Tax
MD Managing Director
MESCOM Mangalore Electricity Supply Company
MFA Miscellaneous First Appeal
MIS Management Information System
MoP Ministry of Power
MU Million Units
MVA Mega Volt Ampere
MW Mega Watt
MYT Multi Year Tariff
NFA Net Fixed Assets
NLC Neyveli Lignite Corporation
NCP Non Coincident Peak
NTP National Tariff Policy
O&M Operation & Maintenance
P & L Profit & Loss Account
PLR Prime Lending Rate
PPA Power Purchase Agreement
PRDC Power Research & Development Consultants
REL Reliance Energy Limited
R & M Repairs and Maintenance
ROE Return on Equity
ROR Rate of Return
ROW Right of Way
RPO Renewable Purchase Obligation
SBI State Bank of India
SCADA Supervisory Control and Data Acquisition System
SERCs State Electricity Regulatory Commissions
SLDC State Load Despatch Centre
SRLDC Southern Regional Load Dispatch Centre
STU State Transmission Utility
TAC Technical Advisory Committee
TCC Total Contracted Capacity
x
T&D Transmission & Distribution
TCs Transformer Centres
TR Transmission Rate
VVNL Visvesvaraya Vidyuth Nigama Limited
WPI Wholesale Price Index
WC Working Capital
xi
KARNATAKA ELECTRICITY REGULATORY COMMISSION,
BENGALURU - 560 001
Dated this 30th day of March, 2016
Order on BESCOM’s Annual Performance Review for FY15 & Annual Revenue
Requirement for FY17-19 & Revision of
Retail Supply Tariff for FY17
In the matter of:
Application of BESCOM in respect of the Annual Performance Review for FY15,
Annual Revenue Requirement for FY17-19 and Revision of Retail Supply Tariff for
FY17, under Multi Year Tariff framework.
Present: Shri M.K.Shankaralinge Gowda Chairman
Shri H.D.Arun Kumar Member
Shri D.B.Manival Raju Member
O R D E R
The Bangalore Electricity Supply Company Ltd., (hereinafter
referred to as BESCOM) is a Distribution Licensee under the
provisions of the Electricity Act, 2003, and has, on 15.12.2015, filed
the following applications for consideration and orders:
a) Review of Annual Performance for FY15 and approval of
revised ARR thereon.
b) Approval of ARR for FY17-19
xii
c) Approval for revision of Retail Supply Tariff, for the financial year
2016-17 (FY17)
In exercise of the powers conferred under Sections 62, 64 and other
provisions of the Electricity Act, 2003, read with KERC (Terms and
conditions for Determination of Tariff for Distribution and Retail Sale of
Electricity) Regulations 2006, and other enabling Regulations, the
Commission has considered the applications and the views and
objections submitted by the consumers and other stakeholders. The
Commission’s decisions are given in this order, Chapter wise.
xiii
CHAPTER – 1
INTRODUCTION
1.0 Bangalore Electricity Supply Company Ltd.- (BESCOM):
The BESCOM is a Distribution Licensee under Section 14 of the Electricity
Act, 2003 (herein after referred to as the Act). The BESCOM is responsible
for purchase of power, distribution and retail supply of electricity to its
consumers and also providing infrastructure for open access, Wheeling
and Banking in its area of operation, which includes eight Districts of the
State as indicated below:
1. Bengaluru Rural
2. Bengaluru Urban
3. Chikkaballapura
4. Chitradurga
5. Davanagere
6. Kolar
7. Ramanagara
8. Tumkur
The BESCOM is a registered company under the Companies Act, 1956,
incorporated on 30th April, 2002. The BESCOM commenced its
operations on 1stJune, 2002.
At present BESCOM’s area of operation is structured as follows:
xiv
O&M Zones O&M Circles O&M Divisions
Bengaluru Metropolitan
Area
Bengaluru North Circle
Malleshwaram
Peenya
Hebbal
Bengaluru East Circle
Shivajinagar
Vidhanasoudha
Inidranagar
Bengaluru South Circle
Koramangala
HSR Layout
Jayanagar
Bengaluru West Circle
RajaRajeshwarinagar
Rajajinagar
Kengeri
Bengaluru Rural Area
Bengaluru Rural Circle
Nelamangala
Chandapura
Yelahanka
Ramanagara
Kolar Circle
Chikkaballapur
Chinthamani
Kolar
KGF
Chitradurga
Tumkur Circle
Tumkur
Tiptur
Madhugiri
Davangere Circle
Davangere
Harihara
Hiriyur
xv
Chitradurga
The O & M divisions of BESCOM are further divided into one hundred and
sixteen sub-divisions with each of the sub-divisions having two to three O
& M section offices.
The section offices are the base level offices looking into operation and
maintenance of the distribution system in order to provide reliable and
quality power supply to BESCOM’s consumers.
1.1 BESCOM at a glance:
The profile of BESCOM is as indicated below:
Sl.
No. Particulars (As on 31-03-2015) Statistics
1. Area Sq. km. 41092
2. Districts Nos. 8
3. Taluks Nos. 44
4. Population lakhs 207
5. Consumers lakhs 94.45
6. Energy Sales MUs 24436
7. Zone Nos. 3
8. DTCs Nos. 227551
9. Assets Rs. in Crores 14647
10. HT lines Ckt. Kms 87919
11. LT lines Ckt. Kms 162193
12. Total employees
strength:
A Sanctioned Nos. 21572
B Working Nos. 12444
13. Revenue Demand Rs. in Crores 13479.59
14. Revenue Collection Rs. in Crores 13209
xvi
1.2 Number of Consumers, Sales in MU to various categories of
consumers and details of Revenue for FY15 as filed by
BESCOM are as follows:
CATEGORY
BESCOM
No. of
Installation
Sales in
MU
Revenue
in Rs.Crs.
Domestic 7148471 5813.75 2754.6
Commercial 869492 4459.21 3703.48
Industrial 180759 5884.43 4035.51
Agriculture 770480 5957.01 1379.94
Others 475316 2321.66 1606.06
Total 9444518 24436.06 13479.59
BESCOM has filed its application for Annual Performance Review for FY15,
approval of Annual Revenue Requirement (ARR) for FY17-19 and Retail Supply
Tariff for FY17.
BESCOM’s applications, the objections / views of stakeholders thereon and the
Commission’s decisions are discussed in detail, in the subsequent Chapters of this
Order.
xvii
CHAPTER – 2
SUMMARY OF FILING & TARIFF DETERMINATION PROCESS
2.0 Background for Current Filing:
The Commission in its Tariff Order dated 6thMay, 2013 had approved the
ERC for FY14 to FY16 and the Retail Supply Tariff of BESCOM for FY14
under MYT principles for the control period of FY14 to FY16. BESCOM in
its present application filed on 15th December, 2015 has sought Annual
Performance Review for FY15 based on the audited accounts, approval
of ARR for the fourth control period i.e. FY17-19 and Revised Retail Supply
Tariff for FY17.
BESCOM, in its application, has made the following new proposals:
i) Introduction of telescopic tariff for domestic sector;
ii) Increasing the fixed cost;
iii) Voltage wise tariff for HT consumers;
iv) Billing EHT/HT consumers on kVAh basis;
v) Exclusive tariff for Kalyan Mantapas;
vi) Inclusion of morning peak hours under ToD tariff;
2.1 Preliminary Observations of the Commission:
After the scrutiny of applications, the Commission communicated its
preliminary observations to BESCOM on 1st January, 2016. The preliminary
observations were mainly on the following points:
Capital Expenditure
Sales Forecast
Assessment of IP set consumption
xviii
Power Purchase
Issues pertaining to items of revenue and expenditure
Compliance to Directives.
Financial implications on the new proposals.
BESCOM has furnished its replies on 11th January, 2016. The replies furnished
by BESCOM are considered in the respective Chapters of this Order. Further,
the Commission also held a validation meeting to discuss the proposals of
BESCOM on 10th February, 2016.
2.2 Public Hearing Process:
As per the provisions of the Electricity Act 2003, the Karnataka Electricity
Regulatory Commission (Terms and Conditions for Determination of Tariff
for Distribution and Retail Sale of Electricity) Regulations, 2006, read with
the KERC Tariff Regulations 2000, and KERC (General and Conduct of
Proceedings) Regulations, 2000, the Commission, vide its letter dated
14th January, 2016, treated the application of the BESCOM as a petition
and directed the BESCOM to publish the summary of the application for
APR of FY15, approval of ARR for FY17-19 and retail supply tariff for FY17,
in the newspapers, to call for objections, from the interested
persons/stakeholders.
Accordingly, BESCOM has published the Notices in the newspapers as
follows:
Name of the News Paper Language Date of Publication
Indian Express English 19/1/2016
&
20/1/2016
Times of India
Prajavani Kannada
Vijayavani
The BESCOM’s application on APR of FY15, ARR for FY17-19 and Retail
supply tariff for FY17 were also hosted on the web-sites of BESCOM and the
xix
Commission for the ready reference and information of the stakeholders and
the general public.
In response to the application of BESCOM, the Commission has received fifty
statements / letters of objections. BESCOM has furnished the replies to all
these objections. The Commission has also held a Public Hearing in the
Commission’s Office on 26th February, 2016 at the Court Hall of the
Commission in Bengaluru. The details of the written / oral submissions made
by various stake holders and the response from BESCOM thereon, have been
discussed in Chapter - 3/ Appendix, appended to this Order.
2.3 Consultation with the Advisory Committee of the Commission:
The Commission has also discussed the proposals of KPTCL and all ESCOMs
in the State Advisory Committee meeting held on 10th March, 2016. During the
meeting the following important issues were also discussed:
Performance of KPTCL / ESCOMs during FY15
Major items of expenditure of KPTCL / ESCOMs for FY17-19
Members of the Committee have offered valuable suggestions on the
proposals. The Commission has taken note of these suggestions while
passing the order.
xx
CHAPTER – 3
PUBLIC CONSULTATION Suggestions/Objections and Replies
3.1 In pursuance of the provisions of Section 64(3) of the Electricity Act, 2003, the
Commission directed the BESCOM to publish the summary of the Revised ARR
and tariff proposals in the newspapers, inviting written objections/ suggestions/
comments, if any, from interested persons/stakeholders. Further, in order to
elicit the views of interested persons/ stakeholders on the tariff application, the
Commission held a public hearing on 26.02. 2016, at Court Hall of the
Commission in Bengaluru. During the public hearing, several Stake-holders and
public have raised several objections and also filed written submissions on the
Tariff Application filed by the BESCOM.
Names of the persons, who have filed written objections, are given below:
Sl.No
Application No.
Name & Address of Objectors
1 BB-01 Doddannavar Global Energy Pvt Ltd., Bengaluru.
2 BB-02 Sri. N.Udayasimha, Bengaluru.
3 BB -03 Sri. Yagnanarayana M.N, General Secretary, Laghu Udyog Bharati – Karnataka, Bengaluru.
4 BB-05 Sri. Y.G.Muralidharan, Co-ordinator, Karnataka Electricity Governance Network, Bengaluru.
5 BB-06 Sri. T.V.Mohandas Pai, Vice President, B.PAC, Bengaluru.
6 BA-01 Sri M Sitaram, Vice President, The Nurserymen Co-operative Society Ltd., Bengaluru.
7 BA-02 Sri. R.Ramanna, Financial Advisor & Chief Accounts Officer, BWSSB, Bengaluru.
8 BA-03 Sri. K.B.Arasappa, Hon. Gen. Secretary, KASSIA.
9 BA -04 Sri, V. Anbu, Secretary and Director General, Indian Machine Tool Manufactures Association, Bengaluru.
10 BA-05 Sri. Giri M.M, Hon. Gen. Secretary, Peenya Industries Association, Bengaluru.
11 BA-06 Sri Lokaraj, Secretary, Federation of Karnataka Chambers of Commerce and Industry, Bengaluru.
12 BA-07 Sri. B.N. Venkatesh, Anekal.
13 BA-08 Sri. G. Manjunath, Anekal.
14 BA-09 Sri. Puttaswamy, Bengaluru Urban.
15 BA-10 to BA-22
Sri. J.Rajesh,& others Y.N. Camp, Davanagere.
16 BA-23 to BA-30
Sri. C.Arun Kumar & Others, Nelamangala.
17 BA-31 Sri. Srinivasa Reddy, Bommasandra, Bengaluru.
18 BA-32 to BA-45
Sri. Srikanth & others, Kanakapura, Channapatna and Ramanagara.
19 AE-01 Sri. P.N.Karanth, Kundapura.
20 AE-02 Sri. Praveen Sood, IPS, Additional Director General of Police, Administration, Bengaluru.
The above persons have raised several issues concerning (i) Tariff, (ii) Quality
of power Supply and Service (iii) Compliance of Commission’s directives and
(iv) Certain specific requests. The summary of objections, BESCOM’s reply and
Commission’s views are annexed as Appendix – 1 to this Order.
xxi
3.2 During the public hearing, the following persons have made oral submissions
before the Commission:
SL.No. Names & Addresses of Objectors
1 Sri. M.Seetharam, S.L. Nagaraj, C. Aswath, Nurserymen Co-operative Society.
2 Sri. V.Shankar Nesargi, DGEPL.
3 Sri. ChannaKeshava, Turuvekere.
4 Sri. Ramakrishnaiah & Rangaswamy, Mugalur.
5 Sri. Praveen Gupta – Better Power.
6 Sri. Sridhar Rao, Manipal University.
7 Sri. Ramesh Ramegowda, Infosys.
8 Sri. Y.R. Gurudath & Manoj Nichani, Manjushree Techno Park Ltd.
9 Sri. Puneet Goel, Greenko.
10 Sri. V.K. Dikshit, President & Sri. K.S. Mallapa Gowda, KASSIA.
11 Sri. H.N. Ramakrishnaiah, BANSSIA.
12 Sri. Sridhar Prabhu, Advocate for Indian Machine Tool Manufactures Association.
13 Sri. Lakshmisha C.V., Laghu Udyog Bharati.
14 Sri. Sunidhi Sharan, Stat kraft Markets, New Delhi.
15 Sri. Venkatesh S. Arbatti, Advocate for BWSSB.
16 Sri. P.B. Mahesha, Kunigal Taluk.
17 Sri. S. Manjunatha, Anekal Taluk.
18 Sri. Gangadhar, Kasaraghatta.
19 Sri. Thippaswamy, Bharatiya Kissan Sangha.
20 Sri. Gangadharaiah, Turuvekere.
21 Sri. M.S. Raghavendra Prasad, Advocate, FKCCI.
22 Sri. K. Kallappa, KKGL, Davanagere.
23 Sri. S.K. Srinivasa, Turuvekere.
24 Sri. S.N. Neelakantappa, Jagalur, Davanagere.
25 Sri. Maharudrappa. M. Bharatiya Kissan Sangha.
26 Sri. Mohandas Pai, B PAC.
27 Sri. Puttaswamy, Bharatiya Kissan Sangha, Bengaluru.
28 Sri. M.L. Ashok, Consumer care Society.
29 Sri. G.N. Krishnappa, Bengaluru.
30 Sri. Chetain Jain, IEX.
3.3 Following are the additional points made during the Public Hearing:
1) Tariff applicable to HT category should not be revised.
2) Capital expenditure incurred without DPRs should not be approved.
3) Rs. 543 Crores of regulatory asset should be contributed by the GoK.
4) BESCOM has erred in calculating Electricity Tax applicable to
different categories.
5) Cross-subsidy provided to MSME consuming more than 200 units or 40
HP should be reduced.
6) There is inordinate delay in implementation of Distribution Automation
System (DAS) project. Further, BESCOM should estimate the
quantifiable efficiency gains on account of implementation of the
same.
7) The ratio of HT: LT should be brought down to 1:1.
8) Introduce pre-paid meters for all the industries.
xxii
9) Fixed charges should not be increased.
10) Steps should be taken to enhance consumers’ awareness regarding
implementation of solar rooftop scheme.
11) Quality of power supply should be improved.
12) Deposits needs to be adjusted in the bills since 2012.
13) There should be one single industrial holiday for entire Bengaluru
area.
14) Open Access should be encouraged by reducing Open Access
charges.
15) While arranging power supply to newly formed layouts, sufficient
deposits should be collected which could compensate for the
distribution losses.
16) BESCOM should furnish the details regarding number of R-APDRP
works undertaken, number of works completed, amount spent and
the efficiency gained.
17) BESCOM is yet to carry out distribution of efficient pump sets under
DSM.
18) Duties of officials should be displayed on the Consumers’ Charter in
all the BESCOM offices.
19) BESCOM is incurring losses despite 90% of the work being carried out
on self-execution basis.
20) Frequency of replacement of meters is very high.
21) Green houses are getting cheaper power under LT5 category.
22) Defunct IP sets should be disconnected.
23) Self-execution works should be carried under strict supervision to
avoid misuse of departmental materials.
24) Electricity should be supplied to IP sets during day time to avoid
problems to farmers.
25) Transformers are being over-loaded by un-authorized IP sets.
26) Inspite of repeated complaints by farmers, BESCOM does not
replace broken pole;
27) One transformer should be provided for every five pump sets
connections and dilapidated poles should be replaced.
28) Mandatory TOD metering should be removed.
29) Penalty should not be charged under TOD metering.
30) Interest on advance payment of energy charges of one year should
be increased.
xxiii
31) The calculations done under D21 and D22 formats are erroneous.
32) Capacitors should be installed in agricultural sector.
33) Information regarding number of IP set connections are not in the
public domain.
34) BESCOM has not refunded the consumers’ excess security deposits.
35) Petition should be provided in Kannada.
36) Separate emergency numbers should be given for each ESCOMs.
37) Electricity supply to IP sets should be given at fixed timings.
38) There should be one CGRF in each taluk.
39) Cash counter are kept open on holidays, due to which employees
are given double wages resulting in loss to the company.
40) BESCOM is paying highest salaries to its employees.
41) Compensation in cases of accidents should be increased to 10
Lakh/person and 1 lakh/animal.
42) Outsourcing of works is a loss to the company.
43) Petition should be precise and in an understandable format. Petitions
should be got analyzed by an independent external agency.
44) Energy audit of agricultural IP sets should be done.
45) Projections should be based on unrestricted demand.
46) BESCOM has extended infrastructure without analysis of load to be
connected, leading to the wastage of capital expenditure.
47) Subsidies should be paid in advance.
48) Public awareness should be created regarding regularization of load.
49) Transformers feeding to IP sets should be of higher capacity to avoid
over-loading.
50) BESCOM employees are not promptly attending to the consumer
grievances.
51) While arranging power supply under temporary category, pre-paid
meters should be provided across Bengaluru. Further, billing should
be done on monthly basis.
The Managing Director of the BESCOM has given replies / clarifications
to the above points and also assured prompt action on consumer
complaints.
xxiv
3.4 The gist of the objections raised, BESCOM’s reply and the Commission’s
view on each of the issues raised by the objectors is given in Appendix-1
of this order.
xxv
CHAPTER – 4
ANNUAL PERFORMANCE REVIEW FOR FY15
4.0 BESCOM’s Application for APR for FY15:
BESCOM, in its application dated 15th December, 2015, has sought
approval of its revised ARR in the Annual Performance Review (APR) for
FY15 based on the Audited Accounts.
The Commission in its letter dated 1st January, 2016 had communicated
its preliminary observations to the application. BESCOM, in its letter
dated 11thJanuary, 2016 has furnished its replies to the preliminary
observations of the Commission.
The Commission in its Multi Year Tariff (MYT) Order dated 6th May, 2013
had approved BESCOM’s Annual Revenue Requirement (ARR) for FY14 –
FY16. Further, in its Tariff Order dated 12th May, 2014, the Commission had
approved the APR for FY13 and had revised the ARR for FY15 along with
Retail Supply Tariff for FY15.
The Annual Performance Review for FY15 based on BESCOM’s Audited
Accounts is discussed in this Chapter.
4.1 BESCOM’s Submission:
BESCOM has submitted its proposals for revision of ARR for FY15 based on
the Audited Accounts as follows:
xxvi
TABLE – 4.1
ARR for FY15 – BESCOM’s Submission Amount in Rs. Crores
Sl.
No Particulars As Filed
1 Energy @ Gen Bus in MU 29423.03
2 Energy @ Interface in MU 28261.00
3 Distribution Losses in % 13.53
Sales in MU
4 Sales to other than IP & BJ/KJ 18452.30
5 Sales to IP & BJ/KJ 5983.75
Total Sales 24436.05
Revenue
6 Revenue from tariff and Misc. Charges 11829.93
7 RE Subsidy 1245.25
Total Revenue 13075.18
Expenditure
8 Power Purchase Cost 10635.32
9 Transmission charges of KPTCL 1032.54
10 SLDC Charges 17.16
Power Purchase Cost including cost of
transmission 11685.02
11 Employee Cost 826.21
12 Repairs & Maintenance 54.94
13 Admin. & General Expenses 203.68
Total O&M Expenses 1084.83
14 Depreciation 199.78
Interest & Finance charges
15 Interest on Loans 217.68
16 Interest on Working capital 348.98
17 Interest on consumer deposits 210.38
18 Other Interest & Finance charges 10.19
19
Less interest & other expenses
capitalised 78.87
Total Interest & Finance charges 708.36
20 Other Debits (6.70)
21 Net Prior Period Debit/Credit (14.04)
22 Return on Equity 84.77
23 Provision for taxation 25.75
24 Other Income 124.44
ARR 13643.33
25
Deficit for FY13 carried
forward(Regulatory Asset & Carrying
Cost) 154.32
Net ARR 13797.65
xxvii
Considering the revenue of Rs.13075.18 Crores against a net ARR of
Rs.13797.65 Crores, BESCOM has reported a gap in revenue of Rs.722.47
Crores for FY15.
4.2 BESCOM’s Financial Performance as per Audited Accounts for FY15:
An overview of the financial performance of BESCOM for FY15 as per its
Audited Accounts is given below:
TABLE – 4.2
Financial Performance of BESCOM for FY15
Amount in Rs. Crores
Sl.
No. Particulars FY15
Receipts
1 Revenue from Tariff and misc. charges 12079.37
2 Tariff Subsidy 1400.23
Total Revenue 13479.60
Expenditure
3 Power Purchase Cost 10635.33
4 Transmission charges of KPTCL 1032.54
5 SLDC Charges 17.16
Power Purchase Cost including cost of transmission 11685.03
6 O&M Expenses 1065.74
7 Depreciation 199.78
Interest & Finance charges
8 Interest on Loans 222.76
9 Interest on Working capital 242.65
10 Interest on consumer deposits 210.38
11 Other Interest & Finance charges 10.19
12 Less Interest and other expenses capitalized 78.89
Total Interest & Finance charges 607.10
13 Other Debits (20.80)
14 Net Prior Period Debit/Credit (14.04)
15 Exceptional items 22.85
16 Other income 205.24
17 Income tax 25.75
Net ARR 13366.16
As per the Audited Accounts, BESCOM has earned a profit of Rs.113.44
Crores for FY15. The profits / losses reported by BESCOM in its audited
accounts in the previous years are as follows:
xxviii
TABLE – 4.3
BESCOM’s Accumulated Profits / Losses
Particulars Rs. Crores
Accumulated losses as at the end of FY10 (350.88)
Profit earned in FY11 0.20
Profit earned in FY12 118.14
Losses incurred in FY13 (432.77)
Profits earned in FY14 76.10
Profits earned in FY15 113.44
Accumulated losses as at the end of FY15 (475.77)
As seen from the above table, the accumulated losses are Rs.475.77
Crores.
Commission’s analysis and decisions:
The Annual Performance Review for FY15 has been taken up duly
considering the actual expenditure as per the Audited Accounts against
the expenditure approved by the Commission in its Tariff Order dated
12th May, 2014. The item wise review of expenditure and the decisions of
the Commission thereon are as discussed in the following paragraphs:
4.2.1 Sales for FY15:
a) Sales other than IP Sets:
The Commission in its Tariff Order dated 12.05.2014 had approved total
sales to various consumer categories at 25395.08 MU as against the
BESCOM’s proposal of 25868.25 MU. Based on the information furnished
in D-2 format, the Commission in its preliminary observations had noted
that actual sales is 24436.05 MU, indicating a short-fall in sales to an
extent of 958.97 MU with respect to the approved sales, with a reduction
in sales of 43.67 MU in LT-categories and 918.03 MU in HT-categories.
xxix
The Commission in its preliminary observations had also noted that the
major categories contributing to the reduction in sales with respect to
the estimates are LT industries (143.24 MU), LT Water Supply (103.53 MU),
HT Industries (814.55 MU) and HT Commercial (541.74 MU) and the major
categories contributing to the increase in sales with respect to the
estimates are LT 2(a) (60.99 MU), HT2(c) (179.84 MU), HT5 (226.53 MU) and
IP Sets (217.28 MU).
In the preliminary observations, BESCOM was informed to analyze the
reasons for reduction in sales to HT categories. In this regard, BESCOM
has attributed the reduction in sales to energy wheeled by HT consumers
under open access to an extent of 1148 MU in FY15. The Commission
notes that, as per the reply furnished by the BESCOM, the sales to HT
categories under wheeling/open access has increased from 683 MU in
FY13 to 1148 MU in FY15, indicating a CAGR of about 30%. However, the
overall sales to HT categories (sale by BESCOM plus Open access sales)
have shown only a marginal growth of 0.76% during the period FY13 to
FY15.
Further, the Commission had also directed BESCOM to furnish the details
of the number of installations shifted from HT2a, HT2b and HT-4 to HT-2c
and the corresponding sales figures for FY14 and FY15 to estimate the
impact of shifting of these installations. BESCOM in its preliminary replies
had stated that such data is not available. Though the above details
were sought again during the validation process, BESCOM did not furnish
the details. In absence of the above data the impact of shifting of
installations from HT2a, HT2b and HT-4 to HT-2c could not be analyzed.
The Commission notes that such data should have been maintained by
BESCOM and therefore, directs BESCOM to maintain such data at least
in future.
During the process of validation, the Commission vide its letter dated 28th
January, 2016, had observed that there is a discrepancy in the data
furnished on the un-billed sales as per Table 3.42 (218.56 MU) and Table
xxx
3.49 (353.13) of the filing. Further, it was observed that as the sale is not
billed it should be considered as commercial loss and included in the
losses. BESCOM was also requested to furnish category-wise break up of
un-billed sales factored in the APR duly reconciling the figures.
In its reply dated 12th February, 2016, BESCOM has confirmed the un-
billed sales as 353.13 MU and has also furnished the category-wise sales
for FY15 as indicated below:
TABLE – 4.4
CATEGORY WISE BREAKUP OF UNBILLED SALES FOR FY15
Categories
Unbilled provision
of FY13-14
(Reversal of March
14) in MU
Add LT – 75% of
Average of March
15 & April 15 & HT
100% of April 15
(Provision for the
year) in MU
Unbilled sales in
MU
1 2 3 4 = 3-2
HT1 47.5 55.7 8.2
HT-2A 232.4 367.5 135.0
HT-2B 176.1 234.4 58.3
HT-2C 14.1 19.4 5.3
HT-3A 0.8 3.0 2.2
HT-3B 0.00 0.0 0.0
HT-4 7.8 9.4 1.6
HT-5 0.0 5.4 5.4
HT TOTAL 478.7 694.7 216.0
LT-1 UPTO 18 Units 7.8 8.2 0.4
LT-1 Above 18 Units 0.0 0.0 0.0
LT-2 315.7 365.9 50.1
LT-3 92.6 106.5 14.5
xxxi
LT-4A 468,8 530.3 61.5
LT-4B 0.0 0.0 0.0
LT-4C 0.0 0.0 0.0
LT-5 67.1 71.9 4.8
LT-6A (WS) 28.9 24.3 -4.6
LT-6B (SL) 26.2 24.8 -1.4
LT-7 0.0 11.8 11.8
LT TOTAL 1006.5 1143.6 137.1
LT + HT TOTAL 1485.2 1838.3 353.1
The Commission had sought additional information vide its letter dated
1st March, 2016 to further validate the un-billed sales. BESCOM vide its
letter dated 14th March, 2016 has furnished the additional information.
Based on the information furnished the Commission has noted the
following data discrepancies:
a) The data for March, 2014 as per DCB indicates sales to HT 5 category
as 5.08 MU whereas the same was indicated as zero in the replies
furnished at the validation meeting.
b) The data of HT5 as per DCB for April, 2014 is indicated as 198.77 MU
which is not correct as the total sales for the financial year FY15 for
this category is 285.58 MU.
c) For the financial year FY14, 75% of average of March, 2014 and April,
2014 sales does not tally with the data furnished in the replies at the
validation meeting.
The Commission notes that, BESCOM has not furnished any explanation
to the observation made by the Commission regarding treatment of un-
billed sales as commercial loss. Normally to arrive at the sales for the
financial year (i.e. from April to March), the sales as per DCB of April of
the following year is added and the sales as per DCB of April of the
financial year is deducted to the overall sales as per April to March DCB
xxxii
of any financial year, as the consumption recorded in the DCB of any
month normally corresponds to the previous month. This approach in
arriving at sales is being followed in MESCOM and is also clearly
indicated in its accounts. In contrast to the above, the following
discrepancies are observed in computation of sales by BESCOM:
a) BESCOM has adopted different approaches for estimating the un-
billed sales in respect of LT and HT categories. The Commission has
observed that BESCOM has considered 75% of average of March,
2015 and April, 2015 for estimating sales and revenue for LT category
and for HT category only sales of April 2015 have been considered.
BESCOM has not explained the reasons for adopting different
approaches for LT and HT sales.
b) While computing the sales for HT category, BESCOM has added the
sales as per DCB of April, 2015 and subtracted sales as per the DCB of
March, 2014 to the HT category sales for the year as per DCB. This is
erroneous for the reason that it should have considered sales of April,
2014 instead of March, 2014 so that the sales corresponds to the
Financial Year 2015. BESCOM has also not furnished any reason for
this. Instead of considering consumption as per DCB of April, 2014,
when data as per March, 2014 DCB which relates to consumption of
February 2014 is considered the losses of BESCOM get distorted.
c) While computing the sales for LT category, BESCOM has added the
sales considering 75% of the average of sales for LT category as per
DCB of April, 2015 and March, 2015 and subtracted 75% of the
average of sales for LT category of April, 2014 and March, 2014
instead of considering the difference of April, 2015 and April, 2014
sales. BESCOM has not explained anywhere the reasons for
adopting this methodology.
For the reasons stated above the Commission is of the view that, the
addition of sales of 353.13 MU including for IP sets is not correct and not
xxxiii
justified as satisfactory explanation is not furnished by BESCOM. Hence,
the Commission decides to consider the above sales of 353.13 MU as
distribution loss and not as sales and hence corresponding disallowance
has been made in the sales for FY15. BESCOM may approach the
Commission if it has any additional data to substantiate its claim that
unbilled sales of 353.13 MU are part of its regular sales.
b) Sales to IP Sets:
In its Tariff Order dated 6th May, 2013, the Commission had approved
specific consumption of IP sets as 8,284 units/installation/annum for the
FY14 to the FY 16, whereas as per the data reported by the BESCOM in its
filing, the specific consumption works out to 8,037 units / installation /
annum for the FY15, which indicates a decrease in the specific
consumption by 247 units / installation / annum. The total IP set
consumption reported for the FY15 including the unbilled consumption of
61.5 MU claimed by the BESCOM is 5,930.3 MU. Therefore, the net
consumption for the FY15 by deducting the unbilled consumption of 61.5
MU is 5,868.8 MU as against approved quantum of 5,712.97 MU. The
difference in consumption between the approved and the actual is
155.83 MU. Thus, the quantum of sales to the IP Sets category has
exceeded the approved quantum for the FY15, by 155.83 MU though
the specific consumption has come down by 247 units / installation /
annum.
Further, the Commission had approved 6,98,604 as number of IP set
installations likely to be serviced during the FY15; the actual numbers of
installations serviced, as reported by the BESCOM, are 7,68,577. The
difference in number of installations is 69,973. This indicates increase in
the number of installations by about 10 percent as against approved
number of installations for the FY15. The BESCOM has reported that the
increase in number of installations in the FY15 is due to regularization of a
large number of un-authorized IP sets, under Regularization Scheme.
The Commission, in its Tariff Order dated 12th May, 2014, had directed the
BESCOM to furnish 11 kV feeder wise IP set consumption based on
xxxiv
energy meters data in respect of agriculture feeders segregated under
NJY scheme, duly taking into consideration the distribution losses
prevailing in 11 kV lines, distribution transformers and LT system, to the
Commission, every month instead of assessing the IP set consumption on
the basis of readings from energy meters fixed to the sample distribution
transformers predominantly feeding to IP set loads. However, the
BESCOM has not submitted the required monthly IP set consumption
data to the Commission regularly.
The Commission, in its preliminary observations, had raised the issue of
increase in sales to the IP set category despite decrease in specific
consumption and had also directed the BESCOM to furnish necessary
feeder wise data as per the energy recorded in the segregated
agricultural feeders, in support of its claims of IP set consumption for the
FY15.
The BESCOM, in its reply to the preliminary observations, has stated that,
consumption of IP sets has increased as compared to the approved
quantum due to servicing of 76,731 numbers of IP sets under
Regularization Scheme during the FY15.
However, the BESCOM has not complied with the Commission’s direction
in respect of submitting the feeder wise consumption data as per the
energy recorded in the segregated agricultural feeders, to justify its
claims of IP set consumption for the FY15, which has been submitted in its
filing to the Commission despite availability of data of agricultural
feeder-wise consumption, for the FY15 consequent on commissioning of
NJY feeders. It has merely submitted that tagging of consumer
installations with the concerned DTCs/feeders is underway and has
sought extension of time to submit the desired information to the
Commission in the prescribed formats and has requested the
Commission to approve the quantum of sales for the FY15 as furnished
by it in its tariff application.
xxxv
The Commission notes that the increase in IP sales for the FY15 may be
partly due to the fact that the BESCOM has serviced a larger number of
IP sets under regularization scheme, than it had projected. However, it is
noted that the BESCOM has not submitted the month-wise number of
installations regularized during the FY15 in order to know the month in
which more number of IP sets were serviced, under Regularization
Scheme, which have contributed to the increase in consumption. The
BESCOM in its reply to the preliminary observations, has reported that
64,038 numbers of installations have been serviced during the period
from April, 2014 to November, 2014, accounting for 2,584.54 MU in
consumption and only 12,693 numbers of installations have been
serviced during the period from December 2014 to March 2015,
accounting for 3,994.16 MU in consumption. It is observed that only
during the last four months in the FY15, the consumption has increased
by 1,409.62 MU as compared to the consumption of 2,584.54 MU in the
first eight months of the FY15. This increase in consumption of IP sets
during the last four months is abnormal and not justified even after
considering that the farmers use IP sets more during the months of
January and March.
Further, it is observed that there is no link between the tagging of
consumer installations with the concerned DTCs/feeders and the
computation of IP set consumption as sought to be done by the
BESCOM, as the IP set consumption has to be computed on the basis of
energy meter readings of 11 kV agricultural feeders duly deducting the
11 kV, distribution transformers and LT system losses to arrive at net
consumption. Therefore, the Commission considers that the reasons
cited by the BESCOM for not submitting the monthly IP set consumption
data based on segregated agricultural feeders to the Commission
regularly is not valid. The BESCOM has not complied with this direction
of the Commission despite segregating 542 numbers of 11 kV feeders
under NJY scheme, because of which it was possible to compute total IP
set consumption on the basis of feeder meter readings.
xxxvi
As per the methodology approved by the Commission for computation
of IP set consumption, the BESCOM is required to furnish only the data of
energy meters of the segregated agricultural feeders, at the substation,
which has not been submitted even after segregating a large number of
agricultural feeders under NJY scheme. Further, it is also not clear as to
which methodology the BESCOM has adopted to compute the total IP
set consumption for the FY15, as filed in its tariff application.
The Commission, during the validation meeting held on 10.02.2016, had
also directed the BESCOM to submit the IP set consumption on the basis
of energy meter readings of 11 kV agricultural feeders which have been
segregated under NJY. In response, the BESCOM has submitted the
details of IP set consumption based on the meter data of agricultural
feeders segregated under NJY. On verification of the energy
consumption data in respect of agriculture feeders, it is observed that
the distribution loss figures reckoned to compute the net IP set
consumption in the feeders, is not based on actual calculation
considering the distribution network sketches. The BESCOM should have
considered the actual distribution losses prevailing in 11 kV lines, DTCs
and LT lines, as per the methodology approved by the Commission for
arriving at the net IP consumption.
In view of the above discussion, the Commission decides to approve
5,868.8 MU towards sales to IP sets for the FY15, as against 5,930.3 MU
claimed by the BESCOM, after disallowing the unbilled sales to an extent
of 61.5 MU, claimed by the BESCOM, in respect of sales towards IP sets.
The category wise sales approved by the Commission in Tariff Order
2014-15 and the actuals allowed now for FY 15 are as indicated in the
table below:
TABLE – 4.5
Approved and Actuals Sales for FY15
Figures In MUs
xxxvii
Category As
Approved
Actuals
allowed**
Approved-
Actuals
(Difference)
LT-2a* 5703.77 5714.99 -11.22
LT-2b 38.95 40.82 -1.87
LT-3 1719.96 1648.82 71.14
LT-4b 8.47 1.87 6.60
LT-4c 4.71 6.58 -1.87
LT-5 1277.47 1129.51 147.96
LT-6 534.59 435.67 98.92
LT-6 432.62 390.32 42.30
LT-7 150.37 182.67 -32.30
HT-1 629.29 656.09 -26.80
HT-2a 5564.71 4615.09 949.62
HT-2b 3337.63 2737.64 599.99
HT-2c 9.48 184.05 -174.57
HT-3a& b 19.95 16.06 3.89
HT-4 128.65 125.65 3.0
HT-5 59.06 280.17 -221.11
Sub total 19619.67 18166.00 1453.68
BJ/KJ 62.44 48.20 14.24
IP 5712.97 5868.80 -155.83
Sub total 5775.41 5917.00 -141.59
Grand total 25395.08 24083.00 1312.09 *Including BJ/KJ installations consuming more than 18 units/month
** Unbilled sales not included
The actual share of sales to categories other than BJ/KJ and IP sets is
75.44% as against the estimated share of 77.26% resulting in 1.85
percentage point reduction in share to these categories, while the
actual share of sales to BJ/KJ and IP sets has increased by the same
percentage point.
Thus, the Commission approves total sales of 24083.00 MU for FY-15.
xxxviii
4.2.2 Distribution Losses for FY15:
BESCOM’s Submission:
The Commission had approved distribution losses for FY15 as
shown in the table below:
Range FY15
Upper limit 13.80%
Average 13.60%
Lower Limit 13.40%
BESCOM has reported a loss level of 13.53% in its annual accounts
as detailed below:
1 Energy at Interface Points in MU 28261.00
2 Total sales in MU 24436.05
3 Distribution losses as a percentage of
input energy at IF points 13.53%
Commission’s analysis and decisions:
The distribution loss of 13.53% reported by BESCOM is based on the
sales of 24436 MU as against the energy of 28261 MU at interface
points. However, as discussed in the preceding paragraph under
Sales, the Commission has not recognised 353.08MU of unbilled
sales. Accordingly the retail sales will be 24083 MU. Considering
the revised sales, the distribution losses for FY15 will be 14.78% as
detailed below:
1 Energy at Interface Points in MU 28261
2 Total sales in MU 24083
3 Distribution losses as a percentage of
input energy at IF points 14.78%
Considering the approved range of losses for FY15 as per the Tariff Order
dated 12th May, 2014, the distribution losses reported by BESCOM is 0.98%
more than the approved upper limit (13.80%). In accordance with the
xxxix
regulation 3.4 of the MYT Regulations, BESCOM is liable for levy of penalty
for FY15 as detailed below:
TABLE – 4.6
Penalty for exceeding approved distribution losses in FY15
Particulars FY15
Actual input at IF points as per audited accounts in
MU 28261.00
Retail sales in MU 24083.00
Percentage of distribution losses 14.78%
Target for upper limit of distribution loss 13.80%
Increase in percentage loss 0.98%
Input at loss target for actual sales in MU 27938.52
Increase in input due to increase in distribution losses
in MU 322.48
Average cost of power purchase in Rs./unit 3.61
Increase in power purchase cost due to higher
distribution losses in Rs. Crs 116.57
Thus, the Commission decides to levy a penalty of Rs.116.57 Crores for
increase in distribution losses beyond the target fixed for FY15 in the APR.
4.2.3 Power Purchase for FY15:
BESCOM’s Submission:
1. The Commission in its Tariff order dated 12th May, 2014 had
approved source wise quantum and cost of power purchase for
FY15. BESCOM, in its application has submitted the details of actual
power purchase for FY15 for the purpose of reviewing its Annual
Performance. The details of power purchase is detailed hereunder:
TABLE – 4.7
BESCOM’s POWER PURCHASE FOR FY15
Source of Generation
Actuals for FY15 Approved for FY15 Difference-between Actuals and
Approved-for FY15
% increase
(+)/decrease (-)
over an
approved figures
Energy in
MUs
Cost in
Rs Cr.
Rate in
Rs per
Unit
Energy in
MUs
Cost in
Rs Cr.
Rate in
Rs per
Unit
Energy in
MUs
Cost in
Rs Cr.
Rate in
Rs per
Unit
Energy Cost
KPCL Hydel
Stations 3682.16 210.77 0.57 3646.01 207.72 0.57 36.15 3.05 0 0.99 1.47
xl
Source of Generation
Actuals for FY15 Approved for FY15 Difference-between Actuals and
Approved-for FY15
% increase
(+)/decrease (-)
over an
approved figures
Energy in
MUs
Cost in
Rs Cr.
Rate in
Rs per
Unit
Energy in
MUs
Cost in
Rs Cr.
Rate in
Rs per
Unit
Energy in
MUs
Cost in
Rs Cr.
Rate in
Rs per
Unit
Energy Cost
KPCL-
Thermal
Stations
7774.03 3032.13 3.9 8091.69 3081.57 3.81 -317.66 -49.44 0.09 -3.93 -1.60
Total 11456.2 3242.90 2.83 11737.7 3289.29 2.8 -281.51 -46.39 0.03 -2.40 -1.41
CGS 7291.51 2205.24 3.02 7945.5 2590.73 3.26 -653.99 -385.49 -0.24 -8.23 -
14.88
Major IPPs 4550.28 2117.90 4.65 5503.08 2512.46 4.57 -952.8 -394.56 0.09 -17.31 -
15.70
IPPs -Minor
(NCE
Projects)
3162.61 1183.16 3.74 3323.87 1226.61 3.69 -161.26 -43.45 0.05 -4.85 -3.54
Other
States
Projects
64.35 26.30 4.09 103.66 33.01 3.18 -39.31 -6.71 0.9 -37.92 -
20.33
Short
/Medium
term
including U
I & Sec-11
3673.40 1863.68 5.07 1942.85 1013.41 5.22 1730.55 850.27 -0.14 89.07 83.90
Transmissio
n Charges
(KPTCL &
PGCIL)
1267.10 1243.16 0 23.94 0 1.93
LDC
Charges
(POSOOC
& SLDC)
18.83 13.42 0 5.41 0 40.31
Energy
Balancing -775.28 -292.13 3.77 -775.28 -292.13 3.77
Others
Charges 52.03 0 56.55 0
TOTAL 29423.03 11685.01 3.97 30556.7 11922.1 3.9 -1133.6 -232.56 0.07 -3.71 -1.95
Commission’s analysis and decisions;
1. The actual power purchase for FY15 as filed by BESCOM for approval
of Annual Performance Review is 29423.03 MU amounting to
Rs.11689.55 Crores, as against the approved quantum of 30556.66 MU
amounting to Rs.11922.09 Crores. This represents reduction in
quantum of power purchase to an extent of 1133.60 MU and its cost
by Rs.232.56 Crores.
2. On an analysis of the source-wise approved and actual power
purchases, the following deviations in the quantum of energy and its
cost of purchase are found:
xli
i. As against the approved quantum of 30556.66 MU the actual
power purchased by BESCOM is 29423.05 MU for FY15, which is
about 3.71% less than the approved quantum and in comparison
the shortfall during FY14 was 7.41% and thus the accuracy of
projection of approved power purchase has increased from
92.59% to 96.29 %. The reduction in sales reflected in reduced
power purchase.
ii. On verification of the source-wise power purchase, it is found that,
except for KPCL Hydel, there is reduction in supply from KPCL
Thermal, CGS, IPPs, NCE sources and in other States projects
sources to an extent of 2125.02 MU at a cost of Rs.879.65 Crores.
Consequently, BESCOM has purchased short-term power to a
tune of 3673.40 MU at a cost of Rs.1863.68 Crores. BESCOM has
incurred an additional cost Rs.850.27 Crores towards short-term/
medium-term Power Purchase, resulting in an increase in per unit
cost by 7 Paise.
iii. All these factors including the change in the source-wise mix of
supply, reconciliation of energy and its cost among ESCOMs have
resulted in increased average power purchase cost of BESCOM
at the rate of Rs.3.97 per KWh as against the approved rate of
Rs.3.90 per KWh.
3. The Commission notes that, the SLDC has not implemented the intra-
state ABT. As per the directions issued by the Government of
Karnataka vide its letter dated 28th January, 2016, intra state ABT has
to be implemented immediately by the KPTCL and ESCOMs. The
Commission therefore directs the SLDC, KPCL and the BESCOM to
take appropriate action immediately to implement intra-state ABT
and to host the details thereof, on their respective websites.
4. The Commission in its Tariff order dated 2nd March, 2015 had directed
BESCOM to move the Government to effect necessary adjustments in
the tariff subsidy payable to ESCOMs and ensure that there are no
xlii
inter ESCOM payments outstanding in their accounts. Further,
BESCOM was also directed to reconcile the inter ESCOM energy
exchanges and its costs duly making necessary adjustments to
ensure proper accounting of energy and its cost.
5. The Commission notes that, ESCOMs’ balanced energy to an extent
of 775.28 MU at a cost of Rs.292.13 Crores has resulted in increased
receivables of BESCOM to an extent of Rs.292.13 Crores in FY15.
Further it is also noted that, as per the audited accounts, the
outstanding receivables from other ESCOMs are increasing year after
year. This indicates that, out-standing payments/receivables related
to inter-ESCOMs energy balancing and energy charges have not
been adjusted against subsidy payable by the \ Government, as per
the directions of the Commission.
6. BESCOM is directed to reconcile the inter ESCOM energy exchanges
and its costs every month and it shall collect/pay the amounts out of
the tariff subsidy received from Government of Karnataka, to ensure
proper accounting of energy and its cost.
7. In terms of the MYT Regulations, the Commission taking note of the
above facts decides, to consider 29423 MU at a cost of Rs.11685.03
Crores towards power purchases for FY15.
4.2.4 Renewable Purchase Obligation (RPO) compliance by BESCOM for FY15:
BESCOM has submitted that its achievement of non-solar RPO and solar
RPO are at 11.78% and 0.35% respectively, as against the target of 10%
and 0.25% respectively, as indicated below:
TABLE – 4.8
RPO compliance as submitted by BESCOM for FY15 Company
Name
Total
Input
Energy
(MU)
Non-Solar RPO Solar RPO
Target Achieved Target Achieved
(MU) (%) (MU) (%) (MU) (%) (MU) (%)
BESCOM 29423.03 2942.30 10 3468.12 11.78 73.56 0.25 103.74 0.35
xliii
The Commission has perused the data furnished and the explanation
submitted by BESCOM. The Commission has approved total input energy
of 29423 MU for FY15 in its APR. Thus, BESCOM was required to purchase
2942.3 MU of Non-solar energy and 73.56 MU of solar energy to meet its
RPO targets.
Based on the information furnished, the Commission notes that BESCOM
has achieved 11.78% of non-solar and 0.35% of solar RPO for FY15. Thus,
BESCOM has over-achieved its non-solar and solar RPO targets by 1.78
percentage points and 0.10 percentage points respectively.
4.2.5 Operation and Maintenance Expenses:
BESCOM’s Submission:
BESCOM in its filing has sought approval of O&M expenditure of
Rs.1084.83 Crores for FY15. It has requested the Commission to
consider indexation of CPI: WPI at 76: 24 for working out the
weighted inflation rate at 8.47% calculated on one year CPI & WPI
index from January- December, 2014 and arrive at the normative
O&M expenditure after factoring in the CAGR of growth in the
number of consumers at 5.83% computed based on the consumer
growth as per actuals of FY15 over FY14 (One year) with the base
O & M expenses as per APR of FY14. BESCOM has projected the
normative O&M expenses as follows:
TABLE – 4.9
Normative O & M Expenses – BESCOM’s submission
Particulars FY15
Consumer growth rate as per actual (CGI) 5.83%
Weighted Inflation Index (WII) 8.47%
xliv
O&M Cost of FY14as per APR Rs.in Crs. 957.46
O&M Index= 0&M (t-1)*(1+WII+CGI-X) Rs.in
Crs. 1084.83
Commission’s analysis and decisions:
The Commission in its Tariff Order dated 12th May, 2014 had approved
O&M expenses for FY15 as detailed below:
xlv
TABLE – 4.10
Approved O&M Expenses as per Tariff Order dated 12.05.2014
Particulars FY15
No. of installations as per actuals as per Audited Accts 9260781
Weighted Inflation Index 6.89%
CGI based on 3 Year CAGR 5.37%
Actual O&M expenses for FY13 901.15
Total Approved O&M Expenses for FY15 – Rs.in Crores 1110.95
As per the Annual Audited Accounts of BESCOM for FY15, the actual
O&M expenditure is as follows:
TABLE – 4.11
O&M Expenses of BESCOM as per Annual Audited Accounts for FY15
Amount In Rs. Crores
Repairs & Maintenance 54.95
Employee Expenses 807.11
A&G expenses 203.68
O&M expenses 1165.74
The Commission in its preliminary observations had sought the details of
the certain expenses booked under A&G expenses by BESCOM during
FY15. BESCOM in its replies has stated that it has incurred expenses of
Rs.109.61 Crores towards remuneration to contract agencies including
Gramavidyuth Prathinidhi, IT related services, services for total revenue
management and towards obtaining man power services. Further, an
amount of Rs.38.73 Crores has been incurred towards conveyance and
travel expenses. On detailed review of the expenses, it is observed that
BESCOM is incurring substantial expenses on vehicle hire charges and
professional charges. The vehicle hire charges are indicated as Rs.31.27
Crores and professional charges / remuneration to contract agencies as
Rs.113.15 Crores.
The R&M expenses are also increasing year on year without proper
justification. One of the major items observed is expenses incurred on
repairs of faulty distribution transformers. BESCOM needs to institutionalize
xlvi
a mechanism besides initiating financial prudence measures for
minimizing these expenses.
Further, it is observed that O&M expenses are abnormally increasing as
compared to the previous years. Having incurred such increased
expenses, BESCOM is pleading for allowing O & M expenses as per
actuals. It shall be noted that, the O & M expenses are controllable
expenses, and BESCOM is required to take steps to ensure prudence in
incurring these expenses and limit the same to the allowable O & M
expenses as per norms.
BESCOM has sought consideration of one year data of WPI and CPI for
determining the inflation index and consumer growth rate. It is to be
noted that, the Commission in its Tariff Order dated 12th May, 2014 has
considered the weighted inflation index based on 12 year data in line
with the methodology followed by the CERC and consumer growth is
based on three year Compounded Annual Growth Rate (CAGR) to
represent the true inflation and growth rate. The Commission is of the
view that, one year data of WPI and CPI and consumer growth rate
does not reflect the true index due to situational variations if any. The
Commission in its Order dated 7th January, 2016 in RP No.5/2014, has
decided to allow O & M expenses as per the norms of the MYT
Regulations. Thus, in accordance with the methodology adopted while
approving the ARR for FY14-16 and subsequent APR, the Commission
proceeds with determination of the normative O & M expenses based
on the 12 year data of WPI and CPI and three year CAGR of consumers.
Considering the Wholesale Price Index (WPI) as per the data available
from the Ministry of Commerce & Industry, Government of India and
Consumer Price Index (CPI) as per the data available from the Labour
Bureau, Government of India and adopting the methodology followed
by the CERC, with CPI and WPI in a ratio of 80 : 20, the allowable inflation
for FY15 is computed as follows:
xlvii
Year WPI CPI Composite
Series Yt/Y1=Rt Ln Rt
Year
(t-1)
Product [(t-
1)* (LnRt)]
2003 92.6 107 104.12
2004 98.72 111.1 108.624 1.04 0.04 1 0.04
2005 103.37 115.8 113.314 1.09 0.08 2 0.17
2006 109.59 122.9 120.238 1.15 0.14 3 0.43
2007 114.94 130.8 127.628 1.23 0.20 4 0.81
2008 124.92 141.7 138.344 1.33 0.28 5 1.42
2009 127.86 157.1 151.252 1.45 0.37 6 2.24
2010 140.08 175.9 168.736 1.62 0.48 7 3.38
2011 153.35 191.5 183.87 1.77 0.57 8 4.55
2012 164.93 209.3 200.426 1.92 0.65 9 5.89
2013 175.35 232.2 220.83 2.12 0.75 10 7.52
2014 182 246.9 233.92 2.25 0.81 11 8.90
A= Sum of the product column 35.36
B= 6 Times of A 212.19
C= (n-1)*n*(2n-1) where n= No of years of data=12 3036.00
D=B/C 0.07
g(Exponential factor)= Exponential (D)-1 0.0724
e=Annual Escalation Rate (%)=g*100
7.24
For the purpose of determining the normative O & M expenses for FY15,
the Commission has considered the following:
a) The actual O & M expenses allowed for FY13 excluding contribution
to Pension and Gratuity Trust.
b) The three year compounded annual growth rate (CAGR) of the
number of installations considering the actual number of installations
as per the audited accounts up to FY15.
c) The weighted inflation index (WII) at 7.24% as computed above.
d) Efficiency factor at 1% as considered in the earlier two control
periods.
Thus, the normative O & M expenses for FY15 will be as follows:
Particulars FY15
No. of Installations As per actuals as per Audited Accts 9444518
Weighted Inflation Index 7.24%
Consumer Growth Index (CGI) based on 3 Year CAGR 6.07%
Normative O & M expenses for FY13 excluding P&G
contribution - Rs. Crs. 737.09
O&M Index= 0&M (t-1)*(1+WII+CGI-X)- Rs. Crs. 919.68
xlviii
The above normative O & M expenses have been computed without
considering the contribution to Pension and Gratuity Trust.
The Commission treats employee costs on account of contribution to
P&G Trust as uncontrollable O&M expenses. This component has been
allowed beyond the normative O&M expenses to enable ESCOMs to
meet their actual employee costs.
BESCOM in its audited accounts for FY15 has indicated an amount of
Rs.134.32 Crores towards contribution to Pension and Gratuity Trust.
Considering the BESCOM’s request to treat the contribution to Pension
and Gratuity Trust as uncontrollable O & M expenses, the Commission
computes the allowable O & M expenses for FY15 as follows:
TABLE – 4.12
Allowable O & M Expenses for FY15
Amount in Rs. Crores
Sl.
No. Particulars FY15
1 Normative O & M expenses 919.68
2 Additional employee cost (uncontrollable
O & M expenses)
134.32
3 Allowable O & M expenses for FY14 1053.99
Thus, the Commission decides to allow an amount of Rs.1053.99 Crores
as O&M expenses for FY15.
4.2.6 Depreciation:
BESCOM’s Submission:
BESCOM in its filing as per its audited accounts has claimed an amount
of Rs.199.78 Crores as depreciation worked out after deducting an
amount of Rs.110.50 Crores towards depreciation withdrawn on account
of assets created out of consumers’ contributions / grants as per
Accounting Standards (AS) – 12 as detailed below:
xlix
TABLE – 4.13
Depreciation for FY15 – BESCOM’s Submission
Amount in Rs. Crores
Particulars FY15
Gross fixed assets at the beginning of the year 5605.28
Additions during the year 1645.01
Deductions during the year 175.93
Gross fixed assets at the end of the year 7074.36
Depreciation provided 310.28
Average rate of Depreciation 4.87%
Less: Depreciation withdrawn from contribution as per AS 12 110.49
Depreciation 199.78
The average rate of depreciation works out to 4.87%. The BESCOM has
requested the Commission to allow a depreciation amount of Rs.199.78
Crores for FY15.
Commission’s analysis and decisions:
The depreciation has been determined by the Commission in
accordance with the provisions of the KERC (Terms and Conditions for
Determination of Tariff) Regulations, 2006 as amended on 1st February,
2012. The allowable depreciation for FY15 based on the data as per the
audited accounts are as follows:
TABLE – 4.14
Allowable Depreciation for FY15
Amount in Rs. Crores
Particulars
Opening
Balance of
Asset as on
01.04.2014
Closing
Balance of
Asset as
on
31.03.2015
Depreciation
for FY15
Buildings 60.39 79.36 3.02
Civil 3.06 3.39 0.14
Other Civil 0.51 0.81 0.05
Plant & M/c 1168.38 1499.28 74.36
Line, Cable Network 4327.48 5441.73 230.66
Vehicles 18.70 18.68 1.02
Furniture 10.43 11.64 0.49
Office Equipments 8.82 11.92 0.55
Intangible Assets 2.77 4.88 0.004
l
Sub Total 5600.55 7071.69 310.29
Less Depreciation on
account of assets
created out of
consumer contribution
/ grants
110.50
Net allowable depreciation 199.78
Considering the opening and closing balance of gross blocks of fixed
assets for FY15 and the depreciation as per annual accounts, the
weighted average rate of depreciation works out to 4.90%.
As per the audited accounts for FY15, an amount of Rs.110.50 Crores on
account of depreciation on assets created out of consumers
contribution and grants on actual basis is considered for computation of
allowable depreciation for FY15.
Based on the above, the Commission decides to allow the actual net
depreciation of Rs.199.78 Crores for FY15.
4.2.7 Capital Expenditure for FY15:
a) The BESCOM has reported a capital expenditure of Rs.1782.85 Crores
for FY15 as per Format-D17, as against an approved capex of Rs.763
Crores. As per the category-wise expenditure furnished by the
BESCOM, an amount of Rs.1474.58 Crores is stated to have been spent
for FY15. The category-wise expenses are as detailed below:
TABLE – 4.15
Capital expenditure for FY15 – BESCOM’s Submission
Amount in Rs. Crores
Sl No. Particulars
Approved
capex for
FY15
Actual
Expenditure
1 E & I Works(11kV link lines) 50.00 54.58
2 E & I Works(Additional DTC's) 40.00 54.13
3
Expenditure incurred under E& I Works(HT and LT
Reconductoring, Providing AB cable, Spill over,
Urgent works, Emergency and T&P etc.,)
153.00 195.75
4 Local Planning 20.00 31.30
5 Ganga Kalyana scheme 45.00 34.76
li
6 Service Connection & Drinking water supply 85.35
7 Meter Programming 95.00 193.16
8 Replacement of Faulty transformers by new
Transformers 15.00 101.54
9 Providing infrastructure to Unauthorized IP sets 60.00 166.78
10 RGGVY 12th Plan 0 0.15
11 Niranthara Jyothi Yojane 0 221.05
12 R-APDRP Part-A(IT implementation)
140.00
-27.00
13 DAS 50.53
14 R-APDRP Part-B 34.18
15 HVDS 120.00 248.96
16 Civil Eng. works and DSM 25.00 29.36
Total 763.00 1474.58
However, BESCOM has not explained the reasons for the difference
between the amount as per Format D-17 and the category-wise
expenses furnished.
Commission’s Analysis and decision:
BESCOM’s capital expenditure for FY15 at Rs.1474.58 Crores is 93% more
than the approved capex of Rs.763 Crores. The Commission had
directed BESCOM to approach the Commission with proper justification,
if the capex in any category is likely to exceed 10% or Rs.10 Crores in the
financial year for an in-principle approval, but BESCOM has not sought
any such approval. The category wise excess amount incurred over and
above the approved capex, is as below:
TABLE – 4.16
Details of Excess expenditure over approved capex for FY15
Amount in Rs. Crores
Particulars
Approved
capex for
FY15
Actual
Expenditure
Excess
expenditure
over approved
E & I Works(Additional DTC's) 40 54.13 14.13
Expenditure incurred under E& I Works(HT
and LT Reconductoring, Providing AB
cable, Spill over, Urgent works, Emergency
and T&P etc.,)
153 195.75 42.75
Local Planning 20 31.30 11.30
Ganga Kalyana 45
34.76 75.11
Service Connection & Drinking water supply 85.35
Replacement of Faulty transformers by new
Transformers 15 101.54 86.54
lii
Providing infrastructure to Unauthorized IP
sets 60 166.78 106.78
Meter Programming 95 193.16 98.16
Niranthara Jyothi Yojane 0 221.06 221.06
DAS 140
50.53 -55.29
R-APDRP Part-B 34.18
HVDS 120 248.96 128.96
Total 688 1417.50 784.79
From the above Commission notes that, BESCOM has exceeded the
approved capex of Rs.688 Crores for the above mentioned categories
by Rs.784.79 Crores. In reply to the preliminary observations on this issue,
BESCOM has stated that, the Ganga Kalyana scheme, local planning
works and replacement of faulty transformers are taken up as social
responsibility works, at the behest of elected representatives and also to
comply with the performance standards. Further, BESCOM has stated
that, the expenses incurred during FY15 were planned during FY13 (as on
30.11.2012-MYT 3rd control period), and it was difficult to establish the
exact phase of projects, while projecting the capex for 3 year control
period. It is also stated that the Government of Karnataka frames
policies to undertake work of regularization of un-authorized IP sets,
taking up Ganga Kalyan works and Niranthara Jyothi works. Further,
service connection works, extension and improvement works and
replacement of transformers are essential to supply electricity and to
ensure compliance of the Standards of Performance as mandated by
the Commission. Hence, execution of the spill over works pertaining to
the previous years and incurring expenditure to supply/ restore electricity
supply has resulted in exceeding the approved capex.
The Commission would like to emphasise that, any work to be carried out
by ESCOMs should be planned well in advance and the costs thereon
factored in the ARR of the relevant financial year so as to ensure the
recovery of costs through tariff. With this observation, the Commission
accepts the explanation offered by BESCOM on it exceeding the
approved capex.
liii
Further the Commission notes that, in respect of Replacement of Faulty
transformers by new Transformers, BESCOM has indicated a capital
expenditure of Rs.101.54 Crores against the approved capex of Rs.15
Crores. In this regard, it is to be noted that, the failed transformers should
be replaced by repaired good transformers only and its cost should be
charged to revenue expenditure. In case, the failed transformer is not fit
for repairs it should be scrapped and only such transformers can be
replaced by new transformers and expenditure thereon shall be booked
under capex. The Commission, in its preliminary observations, had sought
the details of failure of transformers, repaired transformers and
procurement of new transformers for replacement of failed transformers
for FY15 from BESCOM. In reply, BESCOM has stated that, total failed
transformers were 15,556, out of which 12797 repaired and 799 were
scrapped. But, BESCOM has stated that, it has used 1843 new
transformers for replacing failed transformers at a total cost of Rs.46.44
Crores. This amount of Rs.46.44 Crores should have been indicated as
capex incurred for Replacement of Faulty transformers by new
Transformers as against Rs.101.54 Crores declared. Thus, an amount of
Rs.55.10 Crores is overstated towards replacement of Transformers in the
capex. Hence, the actual Capex incurred during FY15 would be
Rs.1727.75 Crores instead of Rs.1782.85 Crores.
As regards providing infrastructure to Unauthorized IP sets, BESCOM has
achieved only 18383 Nos. and has not reached its own target of
completing infrastructure for 36228 Nos. of IP Sets. In the area of High
Voltage Distribution System (HVDS) and also NJY scheme, BESCOM has
over achieved the capex for FY15.
As regards Distribution Automation System (DAS), which has been started
in 2009, BESCOM has indicated the capital expenditure up to FY15 and
stated that, various phases of works are under execution and the cost
benefit can be worked out only after the completion of the project. But,
BESCOM has not mentioned the likely date of completion of DAS
project.
liv
Further, considering the capital expenditure in respect of works which
are met out of grants and deducting the excess capex declared for
replacement of failed transformers, the total capital expenditure
actually incurred from BESCOM funds for FY15 would be Rs.1460.85
Crores.
The following table indicates an increasing trend in the year-wise
expenditure incurred by BESCOM, against the approved Capex during
the last four years indicates
TABLE – 4.17
Approved and Actual Capex incurred –FY12-FY15
Amount in Rs. Crores.
Particulars FY12 FY13 FY14 FY15
Capital investment approved by the
Commission 660 510 848 763
Actual capital investment incurred
as per audited accounts 557.68 851 1052 1782.85
Shortfall 102.32 -341 -204 -1019.85
Percentage achievement 84.49 167% 124% 233.7%
It is seen from the above data, while in FY12 the achievement was 84%
of the approved capex. In the year FY15, the achievement of capex vis-
à-vis approved capex is 234%, which indicates an increasing trend in the
year on year capex.
In light of the above discussions and considering the increasing trend in
capex performance by BESCOM from the past three years, the
Commission decides to consider the capital expenditure incurred at
Rs.1727.75 Crores for the purpose of APR for FY15.
(i) Prudence Check of investment on Special Design Transformers (SDTs)
A complaint (No. 12/13) has been filed alleging wasteful expenditure in
respect of implementation of NJY scheme by procuring and installing
Special Design Transformers (SDTs) in BESCOM with a request to disallow
the corresponding expenditure. After detailed examination of the issue,
the Commission in its Order dated 14th January, 2016, has decided as
follows:
lv
The procurement of the 18 SDTs for pilot project by the Respondent
(BESCOM) shall be considered as an experimental initiative and the
corresponding capital expenditure allowed.
The expenditure on procurement and installation of 400 Nos. of the SDTs,
incurred without assessing the performance and utility of the 18 SDTs
installed in the pilot project, is held to be imprudent capital expenditure
and therefore the corresponding charge on the costs (interest and
depreciation) would be disallowed in the ARR of Respondent for the
FY17.
While examining the above disallowance, the Commission notes that the
SDTs procured have not been useful and that they cannot be used
elsewhere. As they are not useful, the same have to be treated as scrap
asset. Hence, the whole of the investment on the 400 SDTs is a wasteful
expenditure. In view of this, the Commission decides to disallow 90% of
the capex of Rs.661.44 Lakh (leaving 10% as scrap value) amounting to
Rs.595.3 lakhs relating to procurement and installation of SDTs. The
Commission decides to deduct this amount in the APR of FY15.
4.2.8 Prudence check of capex for FY15:
The prudence check of capex of BESCOM was taken in two parts:
i. Prudence check of execution of the capital works of FY15.
ii. Prudence check of Material Procurement process of FY15.
i) Prudence check of execution of the capital works of FY15
The Commission has been allowing the capital expenditure as proposed
by BESCOM subject to prudence check. Therefore, the Commission
undertook prudence check of the capital expenditure incurred by
BESCOM for the FY15 by engaging the services of M/s. Power Research
and Development Consultants Pvt. Ltd. (PRDCL) as consultant, to
evaluate the capital expenditure incurred during FY15, in respect of
completed and categorized works.
As per the report of the consultant, the following is the summary of
Prudence check findings for FY15:
TABLE – 4.18
lvi
Summary of Prudence check findings for FY15
Particulars Numbers Cost in
Rs.Crs
Works costing Rs.6 Lakhs and above
considered as samples 120
117.86
Works costing between than Rs.6 Lakhs
and Rs.3 Lakhs considered as samples 50
3.43
Works costing below Rs.3 Lakhs
considered as samples 46
1.02
Works not
meeting the
norms of
prudence
Rs.6 Lakhs and
above Nil
Rs.6 Lakhs and Rs.3
Lakhs Nil
below Rs.3 Lakhs Nil
Total works not meeting the norms of
prudence as stipulated in the
guidelines issued by this Commission
Nil
TABLE – 4.19
Summary of Works having cost overrun
Particulars Within 10% 10-25% Above 25%
Rs.6 Lakhs and above 13 06 04
Rs.6 Lakhs and Rs.3 Lakhs 02 03 00
below Rs.3 Lakhs 04 01 02
TABLE – 4.20
Summary of Works having Time overrun
Particulars Within Year Between one
and two Years
Above 2
Years
Rs.6 Lakhs and above 24 03 03
Rs.6 Lakhs and Rs.3 Lakhs 09 00 00
below Rs.3 Lakhs 06 00 00
The Commission has forwarded the copy of the Report of the Consultant
on the Prudence check to BESCOM for information and guidance.
lvii
ii) Prudence check of Material Procurement process of FY15:
The BESCOM has been executing capital works both on turnkey as well
as partial turnkey contracts. In the process, the BESCOM takes up
procurement of major materials like, distribution transformers, poles and
conductor etc., and issue them to the partial turnkey contractor for
carrying out the labour contract work as per the award. The contractor
would also invest on some of the smaller materials associated with the
works viz., cross arm, bolt & nuts, earthing materials etc., in case of
necessity.
In view of the fact that, a large quantity of major materials are being
procured by the BESCOM, the Commission decided to review material
procurement process of major materials as a part of prudence check
carried out by the consultant. The consultants report does not identify
any instances of imprudence in the procurement process.
4.2. 9 Review of decision taken on Prudence check of capital expenditure
incurred during FY13 to FY14:
The Commission had disallowed the interest and depreciation pertaining
to two works which were not meeting prudence norms in the previous
years’ Tariff exercise. BESCOM has furnished the present status of two
works and requested the Commission to consider the works as meeting
the prudence norms:
1) Evacuation of new 11kV feeder from Brigade Station from feeder
No.4 to Harishchandraghat Circle RMU by providing a intermediate
RMU (2 OD+3VL) in C-1 Sub-Division (3.5kM), Malleshwaram Division,
Estimated cost: Rs.162.82 lakhs;
BESCOM has stated that, Brigade representatives and residential
forum did not allow BESCOM staff to tap the power supply as the GIS
Brigade station as it was established under self-execution basis.
lviii
Alternatively, the Power was tapped from F7 IISC feeder which was
idle, instead of Brigade compound substation. The above work is
completed and load of the crematorium has been transferred on
IISC F7 feeder, the existing F10 NRS feeder is used as an alternative
source to the crematorium.
2) New 11 kV line from REMCO MUSS to police quarters RMU, Mysore
road through 3CX400sq mm HT UG cable to a distance of 4.3 Kms
with 2OD+4VL and 2OD+1VL RMUs and installing new breaker at
REMCO MUSS to reduce overload on F-15 feeder of REMCO MUSS in
O&M-8 unit, W3 sub division, Vidhana Soudha Division/Estimated cost:
Rs.190 lakhs:
BESCOM has stated that, the UG cable from REMCO MUSS upto
Anantharamaiah compound has been damaged due to
construction of flyover, metro and road widening works near
Nayandahhalli. Hence, as an alternative, the under-loaded F10
feeder of REMCO MUSS was made use of, near Ananthramaiah
compound and the load of F15 feeder was shifted on F10 feeder.
The Commission having examined the explanation furnished by
BESCOM, decided to get the works revalidated by the consultants
conducting the prudence check of capital expenditure of BESCOM
for FY15.
Accordingly, the consultants have revalidated the works and stated
that, the investment made on the above two works have been put to
use by BESCOM. The Commission therefore decides to consider the
works as meeting norms of prudence and discontinues the
disallowance. Further, in case of two works termed as non prudent
pertaining to FY10 to FY12, the Commission has disallowed adequate
proportion of expenditure and decides that, further disallowance is
not called for.
4.2.10 Interest and Finance Charges
lix
a) Interest on loan:
BESCOM’s Submission:
BESCOM in its filing has claimed an amount of Rs.217.78 Crores
towards interest on long term loans drawn from banks / financial
institutions. The details of interest on loans claimed by BESCOM are
as follows:
TABLE – 4.21
Interest on Loans- BESCOM’s Submission
Amount in Rs.Crores
Particulars FY15
Long term Loan outstanding as on 31.03.2014 2324.51
Long term Loan outstanding as on 31.03.2015 1763.87
Interest on long term loans 217.69
Considering the opening balance of loans, fresh borrowings and
the repayment of loans during FY15, the weighted average rate of
interest on the average loan amount works out to 10.65%.
BESCOM has requested the Commission to allow amount of
Rs.217.69 Crores for FY15 towards interest on long term loans.
However, BESCOM in its replies to the preliminary observations has
stated that the long term loans outstanding for FY15 as on
31.03.2015 is Rs.2487.94 Crores.
Commission’s analysis and decisions:
The Commission has noted the status of opening and closing balances
of long term loans as per the audited accounts for FY15 and format D9
of the filings as shown below:
TABLE – 4.22
Allowable Interest on Loans – FY15
Amount in Rs.Crores
lx
Particulars FY15
Opening Balance Secured Loans 2277.18
Opening Balance Un-secured Loans 227.97
Total opening balance of loans 2505.16
Less Short term loans/ Over draft 0.00
Less Interest accrued & dues 0.00
Total Long term secured & unsecured loans 2505.16
Add new Loans 479.33
Less Repayments 315.74
Total loan at the end of the year 2668.75
Average Loan 2586.96
Interest on long term loans as per audited accounts for FY15 222.76
Considering the average loan of Rs.2586.96 Crores and an amount of
Rs.222.76 Crores incurred towards interest on long term loans, the
weighted average of interest works out to 8.61%. The Commission notes
that the weighted average rate of interest is lesser than the prevailing
interest rates.
Thus, the Commission decides to allow an amount of Rs.222.76 Crores
towards interest on loan for FY15.
4.2.11 Interest on Working Capital:
BESCOM’s Submission:
BESCOM has stated that it has borrowed short term loans and
overdrafts during the year to meet day to day expenditure
(working capital) during FY15. As per the audited accounts
BESCOM has indicated the opening and closing balances of short
term loans at Rs.2018.84 Crores and Rs.2493.81 Crores respectively
for FY15. The interest on short term loan and overdraft booked is
indicated at Rs.247.73 Crores. The weighted average rate of
interest is 10.98% p.a.
Further, BESCOM citing the provisions of the MYT Regulations has
claimed the normative interest on working capital of Rs.298.35
lxi
Crores based on prime lending rate (BPLR) of 14.60% p.a. for FY15
as detailed below:
TABLE – 4.23
Interest on Working Capital - BESCOM’s Submission
Amount in Rs. Crores
Particulars FY15
One-twelfth of the amount of O&M Expenses 90.40
Opening GFA as per Audited Accounts 5605.27
Stores, materials and supplies at 1% of Opening balance of
GFA 56.05
One-sixth of the Revenue 2246.60
Total Working Capital 2393.05
Rate of Interest (% p.a.) 14.60
Interest on Working Capital 349.38
Actual Interest incurred for FY-15 247.73
Difference of interest incurred and interest on normative basis 101.65
Normative Interest on Working capital 298.35
Commission’s analysis and decisions:
As per the audited accounts, BESCOM has incurred an interest of
Rs.141.11 Crores on short term borrowings and Rs.101.54 Crores on bank
overdraft during FY15. Thus, an amount of Rs.242.65 Crores has been
incurred as interest on working capital during FY15.
The present interest rates by commercial banks and financial institutions
are charged mainly on the basis of base rate of interest declared by RBI
from time to time and the earlier concept of charging interest on the
basis prime lending rate of SBI does not exist. Hence, the Commission
would consider base rate plus certain basis points depending upon the
tenure of the loan. As per the BESCOM’s application, it is stated that
short term loans for FY15 has been availed at a weighted average rate
of interest of 10.98%. However, considering the base rate of interest with
spread of 250 basis points and noting the downward trend in the interest
rate, the Commission decides to allow short term loans at a normative
interest of 11.75% for FY15.
lxii
As per the KERC (Terms and Conditions for Determination of Tariff)
Regulations, 2006 as amended on 1st February, 2012, the Commission has
computed the allowable interest on working capital for FY15 as follows:
TABLE – 4.24
Allowable Interest on Working Capital for FY15
Amount in Rs.Crores
Particulars FY15
One-twelfth of the amount of O&M Expenses 87.83
Opening GFA 5608.05
Stores, materials and supplies 1% of Opening balance of GFA 56.08
One-sixth of the Revenue 2209.16
Total Working Capital 2353.07
Rate of Interest (% p.a.) 11.75
Normative Interest on Working Capital 276.49
Actual interest on WC as per audited accounts for FY15 242.65
Allowable Interest on Working Capital 259.57
Thus, the Commission decides to allow an amount of Rs.259.57 Crores
towards interest on working capital for FY15.
4.2.12 Interest on Consumer Deposits:
BESCOM’s Submission:
BESCOM has claimed an amount of Rs.210.38 Crores towards
payment of interest on security deposits for FY15.
TABLE – 4.25
Interest on consumer deposits for FY15 – BESCOM’s Submission
Amount in Rs. Crores
Particulars FY15
Opening balance of Consumer Deposits 2453.79
Closing balance of consumer deposits. 2831.86
Average Consumer deposit for FY15 2642.83
Interest on consumer deposits 210.38
Rate of Interest 7.96%
Commission’s analysis and decisions:
The Commission notes that, as per the audited accounts for FY15, the
interest on consumer deposits amounting to Rs.210.38 Crores claimed by
BESCOM works out to a weighted average rate of interest of 7.96%. As
lxiii
per KERC (Interest on Security Deposit) Regulations, 2005 the interest on
consumer deposits is to be allowed as per the bank rate prevailing as on
the 1st of April of the relevant year. The bank rate as on 1st April, 2014
was 9.00%. The actual weighted average rate of interest is below the
applicable bank rate.
Thus, the Commission decides to allow an amount of Rs.210.38 Crores
claimed towards interest on consumer deposits for FY15.
4.2.13 Other Interest and Finance charges:
BESCOM has claimed an amount of Rs.10.19 Crores towards other
interest and finance charges for FY15 which includes charges payable to
banks / financial institutions and guarantee commission payable to GoK.
The Commission notes that the claims are as per the audited accounts
and hence decides to allow the same for FY15.
4.2.14 Capitalisation of Interest and other expenses:
BESCOM in its filing has claimed as per audited accounts an amount of
Rs.78.89 Crores towards capitalization of interest on loan and other
operation and maintenance expenses for FY15. The same has been
considered for computation of APR for FY15.
Thus the allowable interest and finance charges for FY15 are as follows:
TABLE – 4.26
Allowable Interest and Finance Charges
Amount in Rs.Crores
Sl.
No. Particulars FY15
1. Interest on Loan capital 222.76
2. Interest on working capital 259.57
3. Interest on consumer deposits 210.38
4. Other interest and finance charges 10.19
5. Less Interest and other expenses capitalized 78.89
6. Total interest and finance charges 624.01
4.2.15 Other Debits:
lxiv
BESCOM’s Submission:
BESCOM, in its application has claimed credit balance of Rs.6.70
Crores towards other debits as detailed below:
TABLE – 4.27
Other Debits-BESCOM’s Submission
Amount in Rs. Crores
Sl
No Particulars FY15
1 Small and Low value items written off 0.27
2 Losses/gains relating to Fixed assets 14.10
3 Assets decommissioning cost (0.04)
4 Bad debts written off 0.01
5 Miscellaneous losses and write offs 5.03
6 Material cost variance (15.09)
7 Provision for loss on obsolescence of
stores etc. in stock (10.98)
Total (6.70)
Commission’s analysis and decisions:
The Commission notes that as per the audited accounts for FY15, an
amount of Rs.10.98 Crores has been factored as provisions for loss on
obsolescence of stores. Such provisions cannot be considered unless
the same is incurred. As such the allowable other debits excluding
provisions for bad and doubtful debts for FY15 are as detailed below:
TABLE – 4.28
Allowable Other Debits
Amount in Rs. Crores
Sl
No Particulars FY15
1 Small and Low value items written off 0.27
2 Material cost variance (15.09)
3 Losses relating to fixed assets 14.10
4 Assets decommissioning cost (0.04)
5 Bad debts written off 0.01
6 Miscellaneous losses and write offs 5.03
Total 4.28
Thus, the Commission decides to consider an amount of Rs.4.28 Crores
as other debits for FY15.
lxv
4.2.16 Net Prior Period Charges:
BESCOM’s Submission:
BESCOM in its filing as per audited accounts has claimed the net
credit balance of Rs.14.04 Crores towards Prior Period credit / debits
as detailed below:
TABLE – 4.29
Net Prior Period Charges-BESCOM’s Submission
Amount in Rs. Crores
Particulars FY15
Short provision of prior period depreciation and
other expenses 14.59
Excess provisions of prior period interest and
finance charges and others (28.63)
Net prior period credits (14.04)
Commission’s analysis and decisions:
As per the Audited Accounts for FY15, the prior period debit is Rs.16.40
Crores on account of employee costs, A&G expenses and under
provided depreciation of earlier years. Further, the prior period credit of
Rs.30.44 Crores is on account of excess provision for depreciation and
other expenses. Hence the Commission decides to allow a net prior
period credit of Rs.14.04 Crores for FY15.
4.2.17 Return on Equity:
BESCOM’s Submission:
BESCOM in its application has claimed Return on Equity of Rs.71.15
Crores for FY15 as detailed below:
TABLE – 4.30
Return on Equity – BESCOM’s Submission
Amount in Rs. Crores
Particulars FY15
Paid up share capital 546.91
lxvi
Net profit for FY15 113.44
Total share capital 660.35
Reserves and surplus (589.20)
Equity for FY15 71.15
However, BESCOM has requested to allow Rs.84.77 Crores as RoE
considering only the equity of Rs.546.91 Crores held as on 31st March,
2015 (end of FY15) without taking into account the accumulated losses.
Commission’s analysis and decisions:
As per the KERC (Terms and Conditions for Determination of Tariff)
Regulations, 2006 as amended on 1st February, 2012, the Commission has
computed the allowable Return on Equity at 15.5% on equity plus
reserves and surplus as at the beginning of the year besides allowing
taxes as per actuals .Considering the status of equity as per the audited
accounts for FY15, the allowable RoE is determined as follows:
TABLE – 4.31
Allowable Return on Equity
Amount in Rs. Crores
Particulars FY15
Paid Up Share Capital 546.92
Share deposit 133.08
Reserves and Surplus as on 31.03.2014 (589.21)
Recapitalisation of security deposit (100.00)
Total Equity (9.21)
Considering total equity of Rs.680.00 Crores and accumulated losses of
Rs.589.21 Crores as at the beginning of the year FY15 and factoring
recapitalization of security deposit of Rs.100.00 Crores in compliance with the
Orders of the Hon’ble ATE in appeal No.46/2014, BESCOM has a negative net
worth of Rs.9.21 Crores.
Thus, the Commission decides not to allow any Return on Equity for
FY15.
4.2.18 Income tax :
lxvii
As per the audited accounts, BESCOM has incurred an expenditure of
Rs.25.75 Crores towards payment of Income Tax for FY15. The Commission
decides to allow the actual Income Tax paid of Rs.25.75 Crores for FY15.
4.2.19 Other Income:
BESCOM’s Submission:
BESCOM in its application has claimed an amount of Rs.124.44 Crores as
other income for FY15. However, as per the audited accounts, an
amount of Rs.205.24 Crores is shown as Other Income for FY15. This
amount includes income from interest on fixed deposits, profit from sale
of scrap / stores, rent from staff quarters and incentives earned due to
prompt payment of power purchase bills besides miscellaneous income
and rebate on payment of electricity duty.
BESCOM has earned Rs.141.39 Crores as incentive towards prompt
payments for power purchase. BESCOM has proposed to retain an
amount of Rs.70.70 Crores i.e.50% of the incentive earned. Further,
BESCOM has not considered the interest earned on Bank fixed
deposits for Rs.10.72 Crores as other income. The details as per
BESCOM filing are as under:
TABLE – 4.32
Other Income – BESCOM’s Submission
Amount in Rs. Crores
Particulars FY15
Profit on sale of stores 0.98
Rent 1.90
Incentives received 70.70
Value of materials found excess during physical
verification 0.41
Miscellaneous 47.49
Rebate at 0.5% for collection of Electricity Duty 2.97
Excess provision made in prior period which is no longer
required 0.01
Total other income 124.44
lxviii
Commission’s analysis and decisions:
As per the audited accounts, an amount of Rs.205.24 Crores is indicated
as other income for FY15. As decided in the earlier Tariff Orders, to
encourage and bring in financial discipline in timely payment of monthly
power purchase bills, the Commission continues to allow10% of the total
incentive amounting to Rs.14.13 Crores on account of timely payment of
power purchase bills to be retained by BESCOM for FY15. Further, the
amount of Rs.10.72 Crores earned by BESCOM by way of interest on
bank fixed deposits is to be considered as other income since BESCOM
has deposited the funds available from the business. Thus after
deducting the incentive amount of Rs.14.13 Crores and considering the
interest earned on fixed deposits of Rs.10.72 Crores, the Commission
decides to allow an amount of Rs.191.11 Crores as other income for FY15.
lxix
4.2.20 Fund towards Consumer Relations / Consumer Education:
The Commission has been allowing an amount of Rs.1.00 Crore per year
towards consumer relations / consumer education. BESCOM in its application
had not reported any expenditure towards Consumer Relations / Consumer
Education incurred separately during FY15. However, BESCOM in is replies to
the Commission’s preliminary observations has informed that an amount of
Rs.4.77 Crores has been incurred towards consumer awareness programmes
on safety measures, energy conservation and demand side management
initiatives under separate head of account. The Commission notes that these
expenses have been factored in the audited accounts under A&G expenses.
The expenditure reported by BESCOM is inclusive of expenses towards
activities other than those intended in Rs.1.00 Crores earmarked in the ARR.
Hence, considering the overall expenditure reported by BESCOM, the
Commission decides to factor Rs.1.00 Crores in the APR as expenses towards
consumer relations / consumer education for FY15. The balance amount is
already considered while computing the O & M expenses on normative basis
as discussed in the earlier paragraphs of this Chapter.
4.3 Abstract of Approved ARR for FY15:
As per the above item-wise decisions of the Commission, the
consolidated Statement of ARR for FY15 is as follows:
TABLE – 4.33
Approved ARR for FY15 as per APR
Amount in Rs.
Crores.
Sl.
No Particulars
APR FY15
As Appd As Filed As per
APR
1 Energy @ Gen Bus 30557 29423 29423.03
2 Transmission Losses in % 3.81% 3.95% 3.95%
3 Energy @ Interface in MU 29392 28261.00 28261.00
4 Distribution Losses in % 13.60% 13.53% 14.78%
Sales in MU
5 Sales to other than IP & BJ/KJ 19619.67 18452.30 18164.74
6 Sales to IP & BJ/KJ 5775.41 5983.75 5918.26
lxx
7 Total Sales 25395.08 24436.05 24083.00
8 Revenue at existing tariff in Rs Crs
9 Revenue from tariff and Misc. Charges 12409.27 11829.93 11919.82
10 Tariff Subsidy 1192.92 1245.25 1335.13
11 Total Existing Revenue 13602.19 13075.18 13254.95
Expenditure in Rs Crs
12 Power Purchase Cost 10887.71 10635.32 10635.32
13 Transmission charges of KPTCL 1022.49 1032.54 1032.54
14 SLDC Charges 11.89 17.16 17.16
15 Power Purchase Cost including cost of transmission 11922.09 11685.02 11685.02
Employee Cost
Repairs & Maintenance
Admin & General Expenses
16 Total O&M Expenses 1110.95 1084.83 1053.99
17 Depreciation 168.58 199.78 199.78
18 Interest & Finance charges
19 Interest on Loans 160.92 217.68 222.76
20 Interest on Working capital 265.15 348.98 259.57
21 Interest on belated payment on PP Cost* 0 0 0
22 Interest on consumer deposits 214.74 210.38 210.38
23 Other Interest & Finance charges 7.63 10.19 10.19
24 Less interest & other expenses capitalised 39.99 78.87 78.89
25 Total Interest & Finance charges 608.45 708.36 624.01
26 Other Debits 0 -6.7 4.28
27 Net Prior Period Debit/Credit 0 -14.04 -14.04
28 RoE 0.00 84.77 0.00
29 Provision for taxation 0 25.75 25.75
30
Funds towards Consumer Relations/Consumer
Education 1 0 1.00
31 Other Income 225 124.44 191.11
32 ARR 13586.07 13643.33 13388.68
33 Deficit for FY13 carried forward 627.13 154.32 0
34
Penalty for increase in distribution losses and
disallowance of imprudent capex as KERC Order
dated 14.01.2016 in Case No 12/2013
122.52
35 Net ARR 14213.20 13797.65 13266.16
36 Regulatory asset to be recovered in FY16 & FY17 -611.01
37 Net ARR for FY15 13602.19 13797.65 13266.16
4.3.1 Gap in Revenue for FY15:
As against an approved ARR of Rs.13602.19 Crores, the Commission after
the Annual Performance Review of BESCOM for FY15 decides to allow
an ARR of Rs.13266.16 Crores for FY15. Considering the revenue of
lxxi
Rs.13254.95 Crores, the deficit of Rs.11.21 Crores is determined for the
year FY15.
The Commission decides to carry forward the deficit of Rs.11.21 Crores of
FY15 to the proposed ARR for FY17as discussed in the subsequent
Chapter of this Order.
4.3.2 Previous years’ Gap:
BESCOM, in its tariff application has claimed Rs.475.77 Crores against
accumulated losses of the previous years. The Commission notes that
during the Annual Performance Review of the relevant years, the
Commission has been allowing the actual expenditure based on the
MYT norms and the revenue gap or surplus thereon is being carried
forward to the subsequent year’s ARR. The ESCOMs are expected to
regulate their income and expenditure within the within approved
amounts exercising due diligence and efficiency. Once the APR is
approved in terms of the MYT Regulations, the Commission cannot
further review the performance of the previous years. Therefore, the
Commission has not considered the accumulated losses of the previous
years as claimed by the BESCOM.
lxxii
CHAPTER – 5
ANNUAL REVENUE REQUIREMENT FOR FY17-19
5.0 Annual Revenue Requirement (ARR) for FY17-FY19
BESCOM’s Application:
BESCOM in its application dated 15th December, 2015, has sought
approval of ARR for FY17-19. The summary of the proposed ARR for FY17-
19 is as follows:
TABLE – 5.1
Proposed ARR for FY17-19
Amount in Rs.Crores
Sl.
No. Particulars FY17 FY18 FY19
1 Energy @ Gen Bus in MU 32907.24 34674.06 36540.95
2 Transmission Losses in % 3.47% 3.37% 3.27%
3 Energy @ Interface in MU 31765.36 33505.54 35346.06
4 Distribution Losses in % 13.30% 13.20% 13.10%
Sales in MU
5 Sales to other than IP & BJ/KJ 20554.10 21852.54 23241.88
6 Sales to IP & BJ/KJ 6986.30 7229.96 7473.62
7 Total Sales 27540.00 29082.50 30715.50
Revenue at existing tariff in Rs Crs
8 Revenue from tariff and Misc Charges 13066.38 13797.16 14577.70
9 Tariff Subsidy 1680.08 1738.07 1796.06
10 Total Existing Revenue 14746.46 15535.23 16373.76
Expenditure in Rs Crs
11 Power Purchase Cost 12479.32 14477.41 15583.53
12 Transmission charges of KPTCL 1203.00 1203.00 1203.00
13 SLDC Charges
14
Power Purchase Cost including cost of
transmission 13682.32 15680.41 16786.53
15 Employee Cost 1059.60 1318.30 1476.20
16 Repairs & Maintenance 65.40 81.40 91.10
17 Admin & General Expenses 183.10 227.80 255.10
18 Total O&M Expenses 1308.10 1627.50 1822.40
19 Depreciation 310.00 326.00 338.00
20 Interest & Finance charges
21 Interest on Loans 247.68 334.29 369.35
22 Interest on Working capital 373.28 392.28 410.51
23 Interest on belated payment on PP Cost - - -
24 Interest on consumer deposits 266.40 285.66 304.92
lxxiii
25 Other Interest & Finance charges 10.19 10.19 10.19
26 Less interest & other expenses capitalised 80.00 82.00 86.00
27 Total Interest & Finance charges 817.55 940.42 1008.97
28 Other Debits 0.00 0.00 0.00
29 Net Prior Period Debit/Credit 0.00 0.00 0.00
30 Return on Equity 84.77 84.77 84.77
31
Funds towards Consumer
Relations/Consumer Education 0.00 0.00 0.00
32 Other Income 38.66 42.17 46.06
33 ARR 16164.08 18616.93 19994.60
34 Deficit for the year -1417.62 140.15 -3081.70
35 Deficit for FY15 carried forward -722.47
36 Regulatory asset -541.97
37 Carrying cost on RA -127.95
38 Net ARR 17556.47 18616.93 19994.60
The BESCOM has requested the Commission to approve the Annual
Revenue Requirement of Rs.17556.47 Crores for FY17, Rs.18616.93 Crores
for FY18 and Rs.19994.60 Crores for FY19. Further, it has proposed
increase in retail supply tariff by 102 paise per unit in respect of all the
categories of consumers including BJ/KJ and IP set consumers for FY17, in
order to bridge the gap in revenue of Rs.2810.01 Crores.
5.1 Annual Performance Review for FY15 & FY16:
As discussed in the preceding chapter of this Order, the Commission has
carried out the Annual Performance Review for FY15 based on the
audited accounts furnished by BESCOM. Accordingly, a deficit of
Rs.11.21 Crores of FY15 is required to be carried forward in to the ARR of
FY17.
As regards APR for FY16, the current financial year (i.e. FY16) is yet to be
completed. Hence, the Commission decides to take up the APR of FY16
during the revision of ARR / Retail Tariff for FY18.
lxxiv
5.2 Annual Revenue Requirement for FY17-19:
5.2.1 Capital Investments for FY17-19:
The BESCOM, for the control period has proposed capex of Rs.1529.41
Crores, Rs.967.30 Crores and Rs.713.20 Crores for FY17, FY18 and FY19
respectively. The BESCOM has stated that, it has proposed a capex
based on the data available for FY17 and has stated that, the capex for
FY-18 to FY-21 may have deviations in the coming years, due to
technology up-gradation, Innovations, Statutory adherence, System
compulsion etc. and any change in the proposal, that may happen in
due course, will be submitted to the Commission for approval.
The BESCOM has stated that, it has prepared DPRs, processing of tenders
and work award is under way, for the proposed projects under IPDS,
DDUGJY, HVDS and NJY phase-3.
In the case of Integrated Power Development Scheme (IPDS), the main
objectives are: (1) AT&C loss reduction as per trajectory finalized by MoP
(2) Providing access to all households and (3) 24x7 Power for All.
The scope of works under this scheme is stated to be:
(1) Strengthening of sub-transmission and distribution network;
(2) Metering at input points of the feeders, distribution transformers and
all categories of consumers, replacement of faulty meters & electro-
mechanical meters, introduction of Pre-paid/smart meters and AMI
and
(3) Provisioning for Solar Panels.
In the case of Deen Dayal Upadyaya Grama Jyothi Yojana (DDUGJY),
the main objective is electrification of rural households, especially the
BPL households by creating infrastructure (like extension of HT/LT lines,
installation of new DTCs). The other works include feeder separation,
system strengthening and metering.
lxxv
in respect of IPD scheme the Govt. of India is likely to contribute 60% of
the sanctioned project cost as grant and the remaining amount shall
have to be borne by the utility/ESCOMs. Thus the financing of the
scheme as worked is - 60% grant by the Government of India, 10% borne
by BESCOM and 30% through loans from the lending institutions. The time
line fixed for completion of the project is 24 months from the date of
issue of Detailed Work Award (DWA) by the BESCOM. The BESCOM has
stated that, the works will be monitored by M/s. RECPDCL, New Delhi,
who are appointed as Project Monitoring Agency (PMA), for IPDS
Scheme.
M/s. REC has sanctioned an amount of Rs.1754 Crores for the entire state
towards DDUGJY and the Energy Department, GoK has re-allocated
Rs.235 Crores for the BESCOM and has directed it to submit the DPRs.
The details of DPR preparation and sanctioning by REC are shown
below:
TABLE – 5.2
DPR preparation and sanctioning by REC for the DDUGJY projects
Amount in Rs.Crores
Sl
No Name of the work
DPRs
submitted
by
BESCOM
DPRs
sanctioned
by M/s REC
Revised
allocation by
Dept.of
Energy, GoK
Re-allocation
requested by
BESCOM
1 Feeder separation
(DTCs) 88.71 88.71 88.71 0
2
Rural Electrification
(Electrification BPL HH
including creation of
infrastructure)
95.94 7.75 41.86
95.94
3 System strengthening 193.54 15.55 86.79
4 SAGY 38.51 38.51 38.51 38.51
5 Metering 14.12 14.12 66.28 14.12
Total 430.82 164.64 235.36 235.36
lxxvi
Considering the above, BESCOM has proposed a capex requirement for
different categories of works, for FY17 to FY19 as shown in the table
below:
TABLE – 5.3
Capital Investment proposed for FY17 to FY21by BESCOM
Amount in Rs.Crores
Sl
No Particulars FY -17 FY -18 FY -19
1 11 KV Evacuation & Link Lines 68.32 72.05 78.06
2
Safety and Strengthening of HT/LT
network including OH/UG cable and
AB cable works
34.37 38.33 43.15
3 HT Reconductoring 27.95 29.6 30.87
4 LT Reconductoring 30.77 29.63 26.71
5 Providing Additional
DTC's/Enhancement of DTC's 50.49 48.83 44.8
6
Planned works (RE / SCP /
TSP/Drinking Water Ganga Kalyana
and service connection)
52.27 47.21 45.48
7 Local Planning 37.2 36.01 34.91
8 RMU Works 3.89 4.232 3.827
9 Safety Measures/ Hazardous (shifting
DTC at school premises) 12.2 12.74 11.76
10 OH to UG Conversion 2.19 2.10 1.98
11 Infrastructure to Unauthorized IP sets 19.95 5.19 3.27
12 Providing & replacement of RMUs 0.62 0.59 0.56
13
Replacement of meters, Smart
meters, replacement of HTMC of HT
installation
34.65 23.77 8.75
14 DTC Metering programme 2.25 2 1.75
15 IPDS 357 100 100
16 DDUGJY 330 100 100
17 HVDS 100 100 100
18 NJY Phase-3 250 250 -
19 DSM 64.51 64.97 77.3
20 DAS 50.78 - -
Total 1529.41 967.30 713.20
Commission’s Analysis and decision:
In response to the Commission’s preliminary observations on the capex
proposed for implementation of HVDS at Rs.100 Crores each year for the
control period, the BESCOM has submitted a table depicting the works
awarded in Kanakapura urban & Rural sub-division, Harohally, Sathanur
and Huliyurdurga at an awarded cost of Rs.89.66 Crores during FY16. But,
lxxvii
the BESCOM has not furnished any details for the proposal of HVDS
during FY17, FY18 and FY19. Further, it is observed that, the Commission
had issued guidelines on implementation of HVDS and directed the
ESCOMs to obtain approval for the HVDS projects separately, as each of
the ESCOMs had adopted different approach, in preparing the
estimates, indicating different costs for the project.
In the case of NJY phase II, the BESCOM has stated that, the work has
been awarded during November and December, 2015 and it would be
incurring a capex of Rs.250 Crores each for FY17 and FY18.
In respect of the DSM works, the BESCOM has proposed Rs.64.51 Crores
for the FY17, Rs.64.97 Crores for FY18 and Rs.77.30 Crores for FY19 as
capex and has stated that, it is taking up DSM programmes like,
Replacement of less energy efficient IP sets by high energy efficient IP
sets under agriculture DSM program, implementation of Dynamic
Reactive Compensation (DRC) for improving power factor of the DTCs
under Distribution Energy efficient Project (DEEP) and initiating efficient
maintenance of office building in BESCOM.
In respect of the DTC metering, the BESCOM has stated that, it has
completed 75% of the metering of DTCs excluding IP Sets and a balance
of 1,16,618 Nos. of DTCs are yet to be metered.
The BESCOM has been indicating a huge capital expenditure in respect
of Replacement of Faulty transformers by new Transformers in the
previous years. For instance, BESCOM had indicated a capital
expenditure of Rs.101.54 Crores against the approved capex of Rs.15
Crores during FY15. The Commission in its preliminary observations had
sought the details of failure of transformers, repairs and procurement
installation of new transformers for replacement of failed transformers for
FY15 from BESCOM. In reply, the BESCOM has stated that, total failed
transformers were 15,556, out of which 12797 are repaired and 799 are
scrapped. But, it has used 1843 new transformers for replacing failed
lxxviii
transformers at a total cost of Rs.24.03 Crores. This amount of Rs.24.03
Crores is less than 25% of the cost (Rs.101.54 Crores) indicated as capex
supposed to have been incurred for Replacement of Faulty transformers,
by new Transformers.
In this regard, BESCOM shall note that, the failed transformers should be
replaced by repaired good transformers only and it should be charged
to revenue expenditure. Only when the failed transformer is scrapped, it
can be replaced by a new transformer, which is accounted under
capex. The BESCOM has not shown any outlay for this work for FY17 to
FY19 and it is not clear as to where, the Replacement of Faulty
transformers by new Transformers is going to be accounted for.
BESCOM has furnished the sources of funding at Rs.1245 Crores, Rs.674
Crores and Rs.410 Crores for FY17, FY18 and FY19. But, the BESCOM has
stated in the validation meeting that, it is going to finance the capex by
long term loans to an extent of Rs.697.65 Crores for FY17 and Rs.674
Crores and Rs.410 Crores for FY18 and FY19 respectively. The funding
details for some of the categories for which the breakup of sources of
funding is furnished as follows:
Sl.
No Name of the project
Fund details
BESCOM GOI GOK Loan
1 IPDS/DDUGJY 10% 60% - 30%
GK/IP/WS - - 100% -
2 NJY 60% - 40% -
3 UNIP 65% 35%
4 CAPEX works including HVDS 30% - - 70%
The BESCOM, while projecting the capital expenditure, shall be guided
by the “capital expenditure guidelines for ESCOMs” issued by the
Commission and should identify high loss feeders, high loss subdivision,
division and circles and prioritize its capex specifically, to reduce loss
and improve reliability of distribution system. The length of some of the
11kV feeders in rural areas is stated to be more than 100 KMs, hence, the
feeder bifurcation and load segregation are to be taken up on a priority
lxxix
basis by the BESCOM to reduce losses and interruptions as well as to
improve the voltage regulation and reliability.
The optimal distribution system loss should be less than 10% even to
maintain the voltage regulations within the permissible limits of 9 % for
11kV system and 6% for LT distribution system. The BESCOM should
formulate plans to bring down the distribution system losses below 10%
by the end of the Control Period.
The BESCOM should prepare a detailed perspective plan by conducting
11kV feeder-wise and DTC wise load flow studies to ascertain the present
and projected loads on each of the feeders and to arrive at, least cost,
techno economically feasible improvement methods for reducing the
current level of distribution system energy losses to less than 10%.
The BESCOM should make efforts to work out the Techno-economic
analysis for the works considered in system strengthening, improvement
and other works for the control period, so as to ascertain the extent of
capex investment required for reduction losses. In this regard, the
BESCOM should take up system improvement works such as:
a) Reactive power compensation to improve the PF to 0.9-0.95 lag.
b) Reconfiguration of distribution lines
c) Replacement of conductors by higher size, wherever required.
d) Drawing express feeders to bifurcate the loads
e) Establishing new 33kV substations and proposing establishment of
new transmission voltage substations by KPTCL.
f) Installing additional DTCs and shifting DTCs to load centers to
reduce the LT line lengths.
Based on the previous years’ achievements and the new works to be
undertaken as per the GoI schemes in a time bound manner and
considering the long term loans tied up by the BESCOM, the Commission
recognizes the capex proposal of BESCOM at Rs.1529.41 Crores,
Rs.967.30 Crores and Rs.713.20 Crores for FY17, FY18 and FY19
lxxx
respectively. However, considering the loan amount as indicated by the
BESCOM, the Commission recognizes Rs.697.65 Crores, Rs.674 Crores
and Rs.410 Crores for FY17, FY18 and FY19 respectively, for tariff
computations, subject to prudence check and directs the BESCOM to
approach the Commission in case, it requires any additional capex
during the financial year. for obtaining in principle approval,
5.2.2 Sales Forecast for FY17-19:
I. Category wise estimation of number of installations and sales by
BESCOM for the control period:
1) As per the BESCOM’s filing, the number of installations has been
estimated for the control period considering four year CAGR with the
following deviations:
For LT2(b), 3 years CAGR is considered.
For LT5 and LT7, 1 year CAGR is considered.
For HT2(c) the growth rate of HT2(b) is considered as this tariff
category was chalked out of HT2(b) tariff category.
For HT3 (a) and HT3 (b), no increase in number of installation is
considered.
For HT5, the growth rate of LT7 is considered i.e. 24%, as this tariff
category was chalked out of LT7 tariff category.
Further, the BESCOM has stated that, the energy sales have been
estimated for the control period considering four year CAGR with
following deviations:
i) Actual category wise sales of FY14 and FY15 are considered for
projections.
ii) Half yearly sales i.e. cumulative DCB of September, 15 is considered.
iii) In respect of BJ/KJ scheme, as no new schemes are announced by
GoK, the consumption of FY15 is retained for the future years.
lxxxi
iv) Agriculture energy consumption projections are based on specific
consumption; Commission had approved 7795 units/IP/annum for
FY16. But, the BESCOM has considered the specific consumption of
8122 units / IP/ annum for FY16, FY17, FY18 and FY19 for arriving at the
agriculture consumption. The BESCOM has considered an increase of
25,000 consumers for the second half of FY16 and addition of 30,000
consumers for each year of the control period i.e. FY17, FY18 and
FY19.
v) In respect of LT4 (b) as the 4 year CAGR is 12%, the sales for FY16 is
retained for projection as all the years.
vi) As the 4 year CAGR for LT6 water supply and LT6 street light, are -2.7%
and -2.1%, 5 years’ CAGR of 0.3% and 0.6% are adopted.
vii) For HT2(c) category, the HT2 (b) growth rate of 1.4% is considered (as
it was billed under this category earlier).
viii) In case of HT3 (a) and HT3(b) the 4 year CAGR shows abnormal
growth. Hence, no growth rate is considered.
ix) In respect of HT4, the 4 year CAGR is -3.4%. Hence 6 years CAGR of
1.6% is adopted.
x) For HT5 category 8% growth rate of LT7 category is considered as it
was part of LT7 category earlier.
2) The preliminary observations and the queries raised during the
validation meeting on sales forecast for the control period and the
replies furnished by BESCOM are discussed in the following
paragraphs:
i) LT(1) – BJ/KJ category:
The Commission had noted that BESCOM has not indicated any increase
in the number of installations in this category from FY16 onwards, even
though 17,094 installations and 37,123 installations were added in FY14
and FY15 respectively.
lxxxii
The BESCOM, in its replies to the preliminary observations, had stated
that no installations has been serviced under RGGVY during the 12th plan
and therefore, it has retained the same number of installations and sales
to this category during the control period, as proposed in the filing. The
BESCOM had also furnished the breakup of installations consuming less
than or equal to 18 units and above 18 units, as directed by the
Commission.
The above issue was again raised during the validation meeting, wherein
the Commission had noted that there were discrepancies in the data
regarding number of installations and energy sales to BJ/KJ category. In
their response to queries raised during the validation meeting, the
BESCOM has stated that for FY15, the number of BJ/KJ installations
consuming less than or equal to 18 units and more than 18 units are
619570 and 149583 respectively. Further, the BESCOM has reiterated that
the total number of BJ/KJ installations would remain the same for the
entire control period, stating that any addition of installations, under the
DDUGY and the IPDS cannot be directly considered as BJ/KJ
installations.
Since the BESCOM has stated that, there would be no additions to this
category during the control period, the Commission accepts the total
number of installations [both consuming less than or equal to 18 units
and more than 18 units] as proposed by BESCOM. Further, BJ/KJ
installations consuming less than or equal to eighteen units and more
than 18 units are considered as 619570 and 149583 respectively as
furnished by BESCOM for FY15.
Regarding the energy sales to BJ/KJ installations consuming less than or
equal to 18 units, the BESCOM, in its response to the queries in the
validation meeting, has requested the Commission to consider the sales
as indicated at page -22 of their replies to the preliminary observations
which works out to 48.63 MU and 54.44 MU for FY15 and FY16
respectively.
lxxxiii
The Commission has considered 48.20MU as the sales to BJ/KJ
installations consuming less than or equal to 18 units [after deducting
0.42 MU of unbilled sales from 48.62 MU indicated in the FY15 audited
accounts] and 87.23 MU, as the sales to BJ/KJ installations consuming
more than 18 units [considering the total BJ/KJ sales of 135.43 MU as
furnished by the BESCOM at page-19 of the replies to preliminary
observations] for FY15. Considering the specific consumption of FY15,
based on the above data, the Commission has worked out the sales to
BJ/KJ category for the control period.
ii) Other categories excluding IP Sets:
a) The Commission in its preliminary observations had noted that for the
number of installations, the growth rate considered for LT2 (b) and LT6
Street light category was on the higher side and that no additions
were considered to HT3(a) and HT3 (b) categories.
The BESCOM has stated that it has considered 4% growth rate for LT2
(b) and 5% for LT6 Street light category, based on 4-year CAGR.
Regarding, HT-3a and 3b, it is stated that the number of installations
during first half of FY-16 has reduced to 22 from 27 in FY15 in HT-3a
category and in case of HT-3b category the number has increased
to 10 from 2. Further it has stated that in HT-3b, the past trend
indicates 3 to 4 additions/year and therefore, it has retained the
estimates as proposed in the filing.
b) Further, the Commission during the process of validation had
observed that the year-end number of installations estimated for FY16
for LT-2b, LT-3, LT-5, LT-7, HT-2a, HT-2b, HT-2c, HT-3 and HT-4 is lower
than the number of installations as on 30.11.2015. The BESCOM in
response has stated that number of installations up to November-
2015 is abnormally high than the previous years and therefore, the
BESCOM has adopted previous year’s growth rate.
lxxxiv
c) The Commission in its preliminary observations had noted that the
sales growth rates considered for LT2(a),LT 2(b), LT-7 and HT-2a is
lower. Further, the BESCOM was directed to analyze the reasons for
reduction in sales in respect of LT6- water supply and street light
categories during FY15, even though there was a positive growth in
the number of installations. Also, the BESCOM was directed to furnish
reasons for retaining sales toLT4 (b),at the same level, despite an
increase the number of installations during the control period.
The BESCOM has stated that it has considered an overall growth rate
of 5% based on 4-year CAGR and has retained the sales estimates as
proposed.
d) The Commission in its preliminary observations had directed the
BESCOM to justify the additional sales proposed for the Control
period and also to analyze the impact of NJY on category-wise sales.
The BESCOM has stated that as per CEA website report for October,
2015, there is energy deficit by 3%, for the Southern region and
therefore, it has considered 3% shortage under energy not served for
FY17.
The Commission notes that the assumption made by the BESCOM is
incorrect, as the shortage is for the Southern on an average, which
includes other States namely Tamil Nadu, Andhra Pradesh, Kerala,
Puducherry and Telengana, which cannot be adopted for the
BESCOM. Further, it is observed that the BESCOM has not carried out
any independent study to ascertain the impact of load shedding on
its consumption pattern. Also, none of the other ESCOMs have sought
for such additional sales, as duration of supply to consumers is
governed by the State specific Government Policy. In addition, the
BESCOM itself, in its earlier filing, has stated that over-projection of
sales would affect their revenues adversely. The Commission also
notes that in the past four years, the BESCOM has not been able to
lxxxv
sell energy as approved by the Commission, though it had requested
for higher sales as indicated below:
Figures in Million Units
Year Filed by
BESCOM
Approved
by the
Commission
Actual
FY12 23238 21911 21030
FY13 26512 25856 22796
FY14 25387 24978 23065
FY15 25868 25395 24083
In the light of the above, the Commission has not considered any
additional sales for the purpose of determination of tariff as proposed
by the licensee. However, if the BESCOM is able to sell more than the
approved quantum, the Commission would consider the same during
the APR of FY17.
iii) Inconsistency in Sales data:
Regarding the inconsistencies in the sales figures submitted in the
Load forecast and business plan dated 17.08.2015 and the current
tariff filing, the BESCOM, in its replies to preliminary observations, has
stated that for load forecast studies it had considered provisional
data for FY15, whereas in the current filing it has considered audited
figures and that in the current filing correction factor for energy not
supplied based on the discussion with Chairman, BESCOM has been
incorporated and hence, there is a deviation. Further, the BESCOM
has stated that it is not modifying the sales estimate as filed in the
current tariff filing.
Since the BESCOM has not furnished satisfactory replies to the queries
raised earlier by the Commission regarding the Business Plan
submitted, the Commission in this order has restricted the projections
to the control period FY17 to FY19. The BESCOM shall submit the
lxxxvi
Business plan duly complying with the observations, for Commission’s
consideration, for future review.
iv) Inclusion of FY16 data in the calculation of CAGR:
Regarding inclusion of FY16 in the calculation of CAGR, the BESCOM
in its replies has stated that FY16 being the base year for the control
period FY-17 to FY-19, there is an anomaly in the CAGR calculated by
the Commission.
The Commission notes that as per the MYT Regulations for the base
year, best estimate has to be done based on available information.
Since FY16 data itself is an estimated figure, the CAGR should be
calculated considering the period for which actual data is available
i.e. up to FY15, as inclusion of estimated data cannot reflect the
actual growth rate.
Since the BESCOM has reiterated to retain the sales estimate as filed
in the current tariff petition, the Commission has proceeded to
estimate the sales, considering the data furnished in this tariff filing
and the replies furnished to the preliminary observations and to the
queries raised during validation process.
II. Commission’s approach for estimating the number of installations
and sales for Control Period FY17-19:
The Commission notes that, it has issued the KERC (Load Forecast)
Regulations, 2009 which specify that the Commission shall normally
adopt the forecast as per EPS and can deviate from the EPS while
approving ERCs or PPAs by passing orders after duly giving
opportunity to the stakeholders.
For the present control period FY17 to FY19, the projections made by
the ESCOMs including the BESCOM indicate that, their sales forecast
is not in tune with the 18th EPS. The tariff petition filed by the ESCOMs,
which includes the sales estimates and power purchase quantum,
lxxxvii
has been made public and the stakeholders have been heard in the
matter. After considering the views expressed by the stakeholders,
the Commission has decided to adopt the methodology indicated in
the following paragraphs. The methodology so adopted is different
from the CEA’s approach for the reasons stated below:
a. The State of Karnataka is under peak and energy shortage situation
and the supply of electricity is determined by the present restricted
availability of generation capacity. The last three year data of
energy at generation bus actually supplied and as planned in the
EPS, justifies the Commission’s approach:
Year
18th EPS-
Generation
MU
Actual supplied
MU
2013 58513 57046
2014 63001 57725
2015 67833 59969
From the above Table, it is seen that the actual growth rate is
different from those estimated by in the 18th EPS, by the CEA.
b. The loss levels considered by the Commission are as per the loss
reduction trajectory fixed by the Commission for the respective
control periods. Hence the loss levels as adopted by the CEA are not
relevant for the purpose of the approval of ARR and Tariff.
In view of the above, the Commission has considered the business as
usual scenario and the methodology adopted by the Commission to
lxxxviii
estimate the number of installations and sales to categories other than
BJ/KJ and IP sets is discussed below:
1) No. of Installations:
While estimating the number of installations (Excluding BJ/KJ and IP), the
following approach is adopted:
a. The base year number of installations for FY16 is modified, duly
validating the revised estimate furnished by the BESCOM in the
current filing and the data available as on 30.11.2015. The
Commission has noted that in the case of LT-2b, LT-3,LT-5,LT-7 and all
the HT categories excluding HT-1 and HT-5, the end year number of
installations for FY16 is lower than the number of installations as
existing on 30.11.2015. Hence, the Commission has validated both
the number of installations and sales to various categories
considering the actuals as on 30.11.2015 and has estimated the
number of installations and sales for the remaining period reasonably.
Accordingly, the base year estimation has been revised which has
an impact on the estimates on number of installations and sales for
the control period
b. Wherever the number of installations estimated by the BESCOM for
the control period is within the range of the estimates based on the
CAGR for the period FY10 – FY15 and for the period FY12 - FY15, the
estimates of the BESCOM are retained.
c. Wherever the number of installations estimated by the BESCOM for
the control period is lower than the estimates based on the CAGRs
for the period FY10 – FY15 and for the period FY12 - FY15, the
estimates based on the lower of the CAGRs for the period FY10 – FY15
and for the period FY12 - FY15 are considered.
d. Wherever the number of installations estimated by BESCOM for the
control period is higher than the estimates based on the CAGRs for
the period FY10 – FY15 and for the period FY12 - FY15, the estimates
lxxxix
based on the higher of the CAGRs for the period FY10 – FY15 and for
the period FY12 - FY15 are considered.
e. For LT 2b, LT-7, HT-2(c) and HT-5 categories, the estimates of BESCOM
are retained as there is no specific growth pattern.
Based on the above approach, the total number of installations
(excluding BJ/KJ and IP installations) estimated by the Commission for
the control period is indicated in the table below:
Approved Number of installations
FY17 FY18 FY19
Filed Approved Filed Approved Filed Approved
9098640 9088759 9675671 9646750 10307127 10256996
2) Energy Sales:
(i) For categories other than BJ/KJ and IP sets, generally the sales are
being estimated, considering the following approach:
a. The base year sale for FY16 as estimated by the BESCOM is validated
duly considering the actual sale up to November, 2015 and modified
suitably as stated earlier.
b. Wherever the sale estimated by the BESCOM, for the control period,
is within the range of the estimates based on the CAGR for the period
FY10 – FY15 and for the period FY12 - FY15, the estimates of the
BESCOM are considered.
c. Wherever the sales estimated by the BESCOM for the control period is
lower than the estimates based on the CAGRs for the period FY10 –
FY15 and for the period FY12- FY15, the estimates based on the lower
of the CAGRs for the period FY10 – FY15 and for the period FY12 -
FY15 are considered.
xc
d. Wherever sale estimated by BESCOM is higher than the estimates
based on the CAGRs for the period FY10 – FY15 and for the period
FY12 - FY15, the estimates based on the higher CAGRs for the period
FY10 – FY15 and for the period FY12 - FY15 are considered.
e. For LT2 (b), LT(6) water supply, LT-7, HT-2(c) and HT-5, the proposal of
BESCOM is retained as there is no specific growth pattern.
f. For LT-6 water supplies, FY15 specific consumption per installation is
adopted for estimating the sales.
Based on the above approach, the sales (excluding BJ/KJ and IP sales)
estimated by the Commission for the control period is indicated in the
table below:
Figures in MU
FY17 FY18 FY19
As Filed* As
Approved As Filed*
As
Approved As Filed*
As
Approved
19641.06 19684.41 20563.55 20824.05 21548.91 22054.63
Does not include additional sales proposed by the BESCOM
(ii) Sales to BJ/KJ :
The break-up of sales to BJ/KJ installations considered for FY-15 is as
indicated below:
Particulars No. of
Installations
Consumption
in units
Specific
consumption per
installation per
month (kWh)
Installations consuming less than
or equal to18 units*
619570 48.20 6.48
Installations consuming more
than 18 units and billed under
LT2(a)
149583 87.23 48.60
xci
The Commission notes that, the number of installations indicated in D-2
format includes both the installations consuming less than or equal to
eighteen units/month and also more than eighteen units/month. As
stated earlier, the specific consumption works out to 6.48 units
/installation/month for BJ/KJ installations consuming less than or equal to
18 units per month and 48.60 units /installation/month for BJ/KJ
installations consuming more than 18 units per month.
Since, the BESCOM has not proposed any additional installations during
the control period, the number of installations BJ/KJ installations
consuming less than or equal to 18 units per month and more than 18
units per month is retained as on 30.11.2015 and the sales is worked out
as per the above specific consumption for the control period as
indicated below:
Figures in MU
Particulars FY17 FY18 FY19
Installations consuming less than
or equal to18 units
49.15 49.15 49.15
Installations consuming more
than 18 units and billed under
LT2(a)
80.12 80.12 80.12
xcii
(iii) IP set sales projections for ARR FY 17-19
In its Tariff Order dated 6th May, 2013, the Commission had approved a
specific consumption of IP sets as 8,284 units/installation/annum for the
entire control period of the FY14 to the FY16 by considering the existence
of unauthorized IP sets in the distribution system. However, based on the
actual data of sales to IP sets during the FY14, submitted by the BESCOM
in its filing for the FY15, the Commission had revised the specific
consumption as 7,795 units/installation/annum from 8,284
units/installation/annum for the FY16.
The approved sales quantity for the FY15 was 5712.97 MU. This indicates
an increase in sales to an extent of 155.83 MU which can be partly
attributed to servicing of a large number of IP sets under regularization
scheme. However, it is noted that the BESCOM has already segregated
significant number of feeders under NJY which means that power supply
to IP sets could be regulated which could have contributed to reduction
in the agricultural consumption during the FY15. Further, the BESCOM has
reported the total sales of 5,930.30 MU including unbilled consumption to
an extent of 61.5 MU, against 7,68,577 numbers of IP set installations
serviced. Therefore, the net sales for the FY15, deducting the unbilled
sales of 61.5 MU was 5,868.8 MU, which translates into a specific
consumption of 8,037 units/installation/annum for the FY15. It is observed
that the actual specific consumption reported by the BESCOM for the
FY15 is less than the approved figure of 8,284 units / installation /annum
by 247 units /installation/annum. Hence, it is relevant to consider the
specific consumption achieved by it during the FY15 for the ARR for the
FY17 to FY19 also. In view of this, the Commission decides to approve the
specific consumption of 8,037 units/installation /annum achieved by the
BESCOM during the FY15, for the FY17 to FY19 also.
It is noted that the BESCOM has projected the number of IP set
installations as 8,53,515, 8,83,519 and 9,13,519 for the FY17 to FY19 in the
present Tariff filing. In view of this, the Commission has considered the
xciii
number of IP sets furnished by the BESCOM for the FY17 to the FY19
without any modifications. Hence, based on the estimated number of
installations for the FY17 to the FY19, the midyear number of installations
is determined and the sales to IP Set consumers are indicated as below: i)
Particulars As filed by the BESCOM
As approved by the
Commission
FY16 FY17 FY18 FY19 FY17 FY18 FY19
No of installations 8,23,519 8,53,519 8,83,519 9,13,519 8,53,519 8,83,519 9,13,519
Mid-Year no of
installations
8,38,519 8,68,519 8,98,519 8,38,519 8,68,519 8,98,519
Specific consumption in
units/installation/annum
8,267 8,262 8,257 8,037 8,037 8,037
Sales in MU 6,932.30 7,175.96 7,419.62 6,739.18 6,980.27 7,221.39
Accordingly, the Commission approves 6,739.18 MU, 6,980.27 MU, and
7,221.39 MU as energy sales to IP sets as against the BESCOM’s sales
projections of 6,932.30 MU, 7,175.96 MU, and 7,419.62 respectively for the
FY17 to the FY19. Further, any variation in sales in the FY17 would be
trued up during the Annual Performance Review for the FY17 based on
the energy consumption in respect of exclusive agriculture feeders
segregated under NJY.
The above approved IP set consumption is with the assumption that the
Government of Karnataka would release full subsidy to cover the
approved quantum. However, if there is any variation in the subsidy
allocation by the GoK, the quantum of power to be supplied to IP sets of
10 HP and below shall be proportionately regulated. The payment of
subsidy by the GoK on supply to IP sets is detailed in Chapter 6 of this
Order.
Further, it is noted that the BESCOM has already segregated 542
numbers of agriculture feeders from rural loads under NJY phase1&2 and
the energy consumed by the IP sets could be more accurately
measured at the 11 KV feeder level at the sub-stations after duly
allowing for distribution system losses in 11 KV line, distribution
transformers and LT lines. Hence, the Commission reiterates that the
xciv
BESCOM shall report the total IP set consumption on the basis of data
from energy meters in respect of agriculture feeders segregated under
NJY only, to the Commission every month regularly.
Further, the BESCOM is directed to adhere to the duration of power
supply stipulated by the Government in respect of arranging power
supply to exclusive agricultural feeders. The Commission also directs the
BESCOM to take up enumeration of IP sets in its jurisdiction in order to
identify defunct/dried up wells & un-authorized IP sets in the field and
take necessary action to arrive at correct number of IP sets in its account
on the basis of enumeration report. The compliance regarding the same
shall be submitted to the Commission within six months from the date of
issue of this order.
Based on the above discussions, the category wise approved number of
installations for the control period vis-à-vis the estimates made by the
BESCOM is indicated below:
TABLE – 5.4
Category wise approved number of installations
Category
FY-17
FY-18
FY-19
BESCOM’s
estimate
Approved BESCOM’s
estimate
Approved BESCOM’s
estimate
Approved
No. No. No. No. No. No.
LT-2a* 7264413 7214327 7645994 7570528 8048209 7944659
LT-2b 10900 10900 11374 11374 11869 11869
LT-3 952569 985386 1003235 1039878 1056596 1097384
LT-4 (b) 863 817 973 873 1098 933
LT-4 (c) 1679 1675 1905 1897 2161 2147
LT-5 187608 195943 194068 204951 200750 214373
LT-6 WS 70524 68649 77808 76046 85844 84241
LT-6 SL 63179 63012 66260 65910 69491 68941
LT-7 533394 533394 659470 659470 815345 815345
HT-1 238 234 268 261 301 292
HT-2 (a) 6296 6719 6800 7265 7345 7856
HT-2 (b) 5446 6108 5766 6481 6105 6878
HT2C 510 510 540 540 572 572
HT-3(a)& (b) 32 37 32 39 32 41
HT-4 255 314 270 328 286 342
xcv
HT-5 734 734 908 908 1123 1123
Sub-Total other
than BJ/KJ
and IP sets
Other than
BJ/KJ & IP
9098640 9088759 9675671 9646750 10307127 10256996
BJ/KJ 561646 631754 561646 631754 561646 631754
IP Sets 853519 853519 883519 883519 913519 913519
Sub Total BJ/KJ
and IP sets
1415165 1485273 1445165 1515273 1475165 1545273
Total 10513805 10574032 11120836 11162023 11782292 11802269
*Includes BJ/KJ consuming more than 18 units/installation/month
Accordingly, the category wise approved sales for the control period
vis-à-vis the estimates made by the BESCOM are indicated below:
TABLE – 5.5
Category wise approved energy sales
Category
FY-17
FY-18
FY-19
BESCOM’s
Estimate
MU
Approved
by
Commission
MU
BESCOM’s
Estimate
MU
Approved
by
Commission
MU
BESCOM’s
Estimate
MU
Approved
by
Commission
MU
LT-2a* 6679.36 6617.58 7203.55 7148.71 7768.87 7722.98
LT-2b 43.12 43.12 43.49 43.49 43.86 43.86
LT-3 1952.20 1942.44 2106.90 2123.51 2273.86 2321.46
LT-4 (b) 3.95 2.88 3.95 3.08 3.95 3.29
LT-4 (c) 5.17 6.07 5.47 7.21 5.78 8.57
LT-5 1220.00 1203.65 1258.60 1256.11 1298.41 1310.86
LT-6 WS 414.23 509.97 415.46 564.92 416.69 625.80
LT-6 SL 370.38 370.38 372.69 374.34 375.01
5.01
378.34
LT-7 185.94 185.94 200.79 200.79 216.83 216.83
HT-1 723.98 723.98 782.34 779.37 845.40 838.99
HT-2 (a) 4732.03 4743.47 4809.39 4832.95 4888.03 4924.12
HT-2 (b) 2834.01 2834.01 2872.97 2947.52 2912.45 3065.58
HT2C 240.28 240.28 243.59 243.59 246.93 246.93
HT-3(a)& (b) 53.38 77.60 53.38 105.62 53.38 143.75
HT-4 104.50 104.50 106.18 108.04 107.88 111.70
HT-5 78.53 78.53 84.80 84.80 91.58 91.58
Sub-Total
other than BJ/KJ
and IP sets
Other than BJ/KJ
& IP
19641.06 19684.41 20563.55 20824.05 21548.91 22054.63
BJ/KJ 54.00 49.15 54.00 49.15 54.00 49.15
IP 6932.30 6739.18 7175.96 6980.27 7419.62 7221.39
Sub Total
BJ/KJ and IP sets
6986.30 6788.33 7229.96 7029.42 7473.62 7270.54
Total 26627.36 26472.74 27793.51 27853.46 29022.53 29325.16
xcvi
Additional sales 913 0 1289 0 1693 0
Grand Total 27540.36 26472.74 29082.51 27853.46 30715.53 29325.16
*Includes BJ/KJ consuming more than 18 units/installation
xcvii
5.2.3 Distribution Losses for FY17-19:
BESCOM’s Submission:
As per the audited accounts for FY15, the BESCOM has reported
distribution losses of 13.53% as against an approved loss level of 13.60%.
However, as discussed in the previous chapter of this Order, by not
recognizing the unbilled sales of 353.08 MU, the distribution losses
reckoned by the Commission for FY15 is 14.78%. The Commission in its
Tariff Order dated 2nd March, 2015 had fixed the target level of losses for
FY16 at 13.40%. BESCOM in its filing has proposed to achieve the
following loss levels during FY17-19:
TABLE – 5.6
Projected Distribution Losses-FY17-19 – BESCOM’s Submission
Figures in % Losses
Particulars FY17 FY18 FY19
Projected
Distribution losses
13.30 13.20 13.10
Commission’s Analysis and Decisions:
The performance of BESCOM in achieving the loss targets set by the
Commission in the past five years is as follows:
TABLE – 5.7
Approved & Actual Distribution Losses-FY10 to FY16
Figures in % Losses
Particulars FY10 FY11 FY12 FY13 FY14 FY15 FY16
Approved
Distribution losses
16.00 14.75 14.50 14.00 13.80 13.60 13.40
Actual
distribution losses
15.09 14.48 14.46 14.20 13.89 14.78* -
*Actual losses for FY15 are reported as 13.53%. As per Commission’s APR the losses for FY15 is 14.78% after validation of sales.
xcviii
The Commission notes that the loss reduction achieved by BESCOM in
the control period FY11-13 was 0.89 percentage point. In the preceding
years of FY14 & 15, the distribution losses has increased by 0.58
percentage point (in two years of the control period FY14-16). Overall in
the past five years BESCOM has been able to achieve distribution loss
reduction of 0.31percentage point.
The distribution loss projections indicated by the BESCOM shows
reduction from existing reported losses of 13.53% in FY15 to 13.30% in
FY17 and further reduction 0.10% for each year in FY18 and FY19. It is
observed that, the Commission has been allowing capital expenditure
as incurred by the BESCOM and it has also allowed the capex as
proposed for the ensuing control period. Most of the capex spent on the
works like HVDS, E&I works, NJY, DTC metering, RAPDRP should enable
the BESCOM, not only to strengthen its infrastructure but also to reduce
the distribution losses substantially.
The loss reduction proposed by BESCOM is meager, as compared to the
current loss levels. Hence, the Commission, during the validation
meeting stressed on the need of further reduction in the distribution loss
levels proposed by the BESCOM, for the control period FY17-19, duly
considering the past and the present capex. BESCOM has agreed to
the suggestion of the Commission for further loss reduction.
Thus, the Commission decides to fix the following distribution loss targets
for FY17-19:
TABLE – 5.8
Approved Distribution Losses for FY17-19
Figures in % Losses
Particulars FY17 FY18 FY19
Upper limit 13.25 13.00 12.75
Average 13.00 12.75 12.50
xcix
Lower limit 12.75 12.50 12.25
5.2.4 Power Purchase for FY17-19
The ESCOMs in their filings, have submitted the D-1 statement where in
the requirement of power purchase for the control period has been
furnished. The consolidated statement showing the energy requirement,
year-wise is shown hereunder:
TABLE – 5.9
Requirement of electricity as filed by Licensees
Distribution
Utilities Energy (MU)
Energy
(MU) Energy (MU)
FY17 FY18 FY19
BESCOM 32907.24 34674.06 36540.95
MESCOM 5589.96 5904.27 6236.49
CESC 7214.18 7725.09 8274.48
HESCOM 13738.00 13942.08 14849.40
GESCOM 8559.14 8902.63 9292.18
HRECS 322.87 350.14 372.61
AEQUS 12.98 17.78 22.46
MSEZ 80.49 89.33 113.06
TOTAL 68424.40 72168.78 76161.08
BESCOM’s submission:
The BESCOM has submitted its power purchase requirement for the
control period FY17 to FY19 based on the projected sales as follows:
TABLE – 5.10
Energy Requirement as filed by BESCOM
Particulars
As filed by BESCOM
FY 17 FY18 FY19
Sales (MU) 27541.00 29083.00 30716.00
Distribution losses (%) 13.30 13.20 13.10
Energy at IF point (MU) 31765.36 33505.54 35345.06
c
Transmission Losses (%) 3.47 3.37 3.27
Energy Required to meet the
sales of BESCOM (MU) 32907.24 34674.06 36540.95
ci
Commission’s analysis and decisions:
The validation of sales and allowable distribution losses has been
discussed in the previous section of this chapter. Based on the approved
sales and the allowable distribution losses, the requirement of Power for
the BESCOM, for the control period FY17 to FY19 is worked out as
detailed below:
TABLE – 5.11
Power Purchase requirement approved for the
Control period FY17 to FY19
Particulars FY 17 FY18 FY19
Sales (MU) 26472.74 27853.46 29325.16
Distribution losses (%) 13.00 12.75 12.50
Energy at IF point (MU) 30428.44 31923.74 33514.47
Transmission Losses (%) 3.47 3.37 3.27
Energy Required to meet the sales of
BESCOM (MU) 31522.26 33037.09 34647.44
5.2.5 Sources of Power:
BESCOM’s submission;
In its filings, the BESCOM has furnished the sources of Power to meet the
requirement of Power of all ESCOMs for the control period FY17 to FY19.
The BESCOM has submitted the sources of Power and the availability of
each source on the basis of:
(i) the details furnished by the KPCL in respect of KPCL Generating
Stations.
(ii) ex-Bus generation details furnished by the Central Generating
Stations to CEA for preparation of LGBR of FY16 in respect of CGS
Generating Stations.
cii
(iii) the contracted capacity in the case of Major IPPs (UPCL), Minor IPPs
(NCE sources) and others such as Jurala Power & TB Dam Power.
The Capacity share of the existing sources and the envisaged additional
sources vis-à-vis the energy requirement for the entire State, its fixed
charges and variable charges are discussed in the tariff application of
BESCOM. The same are shown in the following Tables. The requirement
indicated in the tables includes the requirement of HRECS, MESCOM -
SEZ and AEQUS - SEZ.
TABLE – 5.12
Consolidated power purchase requirement for FY 17
SOURCES Energy in
MU
Fixed Cost
in
Rs Cr
Variable
Cost in
Rs Cr
Gross Cost
in Rs Cr
Per unit
Cost
KPCL Hydel Energy: 11604.37 28.77 739.16 767.93 0.66
KPCL Thermal Energy: 21690.83 3110.50 6493.51 9604.01 4.43
CGS Energy: 18721.72 1983.03 4574.50 6557.54 3.50
UPCL: 7523.00 1231.51 1653.26 2884.77 3.83
Renewable Energy: 6821.92 0.00 2661.08 2661.08 3.90
Other State Hydel 147.75 63.75 0.00 63.75 4.31
Short Term 1500.52 0.00 756.53 756.53 5.04
PGCIL & POSOCO
Charges 0.00 916.23 0.00 916.23 0.49
KPTCL Transmission,
SLDC and PGCIL
POSOCO Charges 0.00 2745.17 0.00 2745.17 0.40
DEDUCT/ADD THE
EXCESS/DEFICIT
AVAILABILITY -2.04 0.00 -0.64 -0.64
Requirement of Utilities
other than ESCOMs 416.34 0.00 176.80 176.80 4.25
TOTAL 68424.40 10078.96 17054.21 27133.17 3.97
TABLE – 5.13
Consolidated power purchase requirement filed for FY 18
SOURCES Energy in
MU
Fixed Cost
in Rs Cr
Variable
Cost in Rs
Cr
Gross Cost
in Rs Cr
Per
unit
Cost
KPCL Hydel Energy 12042.05 0.00 754.14 754.14 0.63
KPCL Thermal Energy 24277.85 5070.00 7060.74 12130.75 5.00
ciii
CGS Energy 21274.61 1983.04 5920.22 7903.27 3.71
UPCL 5628.59 1231.51 1261.69 2493.20 4.43
Renewable Energy 8349.07 0.00 3362.68 3362.68 4.03
Other State Hydel 147.75 53.52 0.00 53.52 3.62
PGCIL & POSOCO Charges 0.00 1186.65 0.00 1186.65 0.56
KPTCL Transmission and
SLDC & PGCIL POSOCO
Charges 0.00 2918.23 0.00 2918.23 0.40
DEDUCT/ADD THE
EXCESS/DEFICIT
AVAILABILITY -8.39 0.00 -3.24 -3.24 3.86
HRECS, AEQUS-SEZ AND M-
SEZ FILINGS 457.25 0.00 204.75 204.75 4.48
TOTAL 72168.78 12442.96 18560.98 31003.94 4.30
TABLE – 5.14
Consolidated power purchase requirement filed for FY 19
SOURCES Energy in
MU
Fixed Cost
in Rs Cr
Variable
Cost in Rs
Cr
Gross Cost
in Rs Cr
Per unit
Cost
KPCL Hydel Energy 12042.05 0.00 772.48 772.48 0.64
KPCL Thermal Energy 24277.89 4932.96 7250.85 12183.80 5.02
CGS Energy 23344.44 1983.05 6744.61 8727.67 3.74
UPCL 5628.59 1231.51 1286.92 2518.43 4.47
Renewable Energy 10219.82 0.00 4362.05 4362.05 4.27
Other State Hydel 147.75 53.52 0.00 53.52 3.62
PGCIL & POSOCO
Charges 0.00 1365.22 0.00 1365.22 0.58
KPTCL Transmission &
SLDC and PGCIL
POSOCO Charges 0.00 2961.86 0.00 2961.86 0.39
DEDUCT/ADD THE
EXCESS/DEFICIT
AVAILABILITY -8.59 0.00 -37.24 -37.24 43.35
HRECS, AEQUS-SEZ
AND M-SEZ FILINGS 509.13 0.00 245.66 245.66 4.83
TOTAL 76161.08 12528.13 20625.33 33153.46 4.35
Commission’s analysis and decisions
The energy requirement of the ESCOMs, including BESCOM, is being met
by Karnataka Power Corporation Limited (KPCL) Generating stations,
Central Generating Stations (CGS), Major Independent Power producers
(IPPs) and Minor Independent Power producers (NCE sources) through
long-term power purchase agreement. The contingent requirement to
civ
meet the deficit is being met through purchases from Short/Medium
term sources by calling for bids and also purchases from the Power
Exchange. Hence, to arrive at the available quantum of energy and
power for the control period FY17 to FY19, the Commission has
considered the availability as furnished by KPCL and by
SRPC/CERC/CEA for CGS, in respect of their respective Generating
Stations. The availability of CGS stations is based on the share of
Karnataka, as notified from time to time.
In the case of Minor IPPs (NCE/RE sources), the actual generation
capacity contracted by the ESCOMs, as indicated in D-1 format has
been considered. The availability from the other sources such as Jurala
Hydel Station and TB dam Power Stations of Telangana State are taken
at 50% and 20 % of their installed capacity respectively as the share of
Karnataka, as per the contracts executed with these generators.
Further, as the Short Term Power/Medium Term Power procurement to an
extent of around 1108.80 MU has already been contracted by ESCOMs
till May 2016, the same has been considered towards availability for
FY17.
The availability as furnished by the KPCL in respect of Yermarus Unit-1 &
Unit-2 and Yelahanka Combined Cycle Power Plant (YCCPP), having a
capacity of 1600 MW and 350 MW respectively, has not been
considered, as the said generating stations are yet to be synchronized
with the grid and the CoD is yet to be declared. Similarly, Kudgi Unit1,
Unit2 and Unit3, having a total capacity of 2400 MW, are not considered
since they are yet to be synchronized with the grid and CoD is yet to be
declared.
The availability of BTPS unit 3 has been considered since it has been
synchronized and supplying power to the grid. As its commissioning date
and Commercial operation date of is yet to be declared by the KPCL,
the quantum of energy is restricted to the requirement of ESCOMs and
allowed fuel expenses in FY17. For FY18 and FY19, the availability of
cv
energy from this unit has been considered, as furnished by the KPCL, duly
limiting the quantum of energy as per the requirement of ESCOMs, to
meet the sales targets.
Based on the above availability criteria, the energy allowed for the State
to achieve the sales target of the respective years, is given in the
following Table.
TABLE – 5.15
ABSTRACT OF POWER PURCHASE APPROVED FOR ESCOMS FOR THE CONTROL PERIOD
FY17 to FY19
SOURCES
FINANCIAL YEAR 2016-17 FINANCIAL YEAR 2017-18 FINANCIAL YEAR 2018-19
Energy
in MU
Cost in Rs
Cr
Per unit
Cost
Energy in
MU
Cost in Rs
Cr
Per unit
Cost
Energy in
MU
Cost in Rs
Cr
Per
unit
Cost
in Rs.
KPCL Hydel
Energy 10704.90 1001.38 0.94 12045.33 1099.16 0.91 12045.33 1139.37 0.95
KPCL Thermal
Energy 17646.77 7252.08 4.11 19323.50 8392.29 4.34 20992.89 9198.23 4.38
CGS Energy 21525.17 6980.84 3.24 21525.17 7082.24 3.29 21525.17 7184.17 3.34
UPCL 7462.68 3093.67 4.15 7462.68 3129.03 4.19 7462.68 3165.10 4.24
Renewable
Energy: 6846.71 2790.38 4.08 8394.81 3413.83 4.07 10265.57 4452.20 4.34
Other State
Hydel 144.08 67.73 4.70 144.08 71.64 4.97 144.08 75.78 5.26
Short Term 1108.80 558.84 5.04 0.00 0.00 0.00 0.00
PGCIL &
POSOCO
Charges - 949.21 0.44 958.70 0.45 968.29 0.45
KPTCL
Transmission
& SLDC and
PGCIL
POSOCO
Charges - 3112.76 0.48 3197.08 0.47 3500.45 0.50
TOTAL 65439.11 25806.89 3.94 68895.57 27343.97 3.97 72435.72 29683.58 4.10
5.2.6 Power Purchase Cost & Transmission charges:
BESCOM’s Submission
BESCOM has submitted the Power Purchase requirement along with the
cost including the transmission charges and SLDC charges, in D-1 format.
BESCOM has sought approval of the Commission for purchase of power
cvi
to en extent of 32907.24 MU, 34674.06 MU and 36540.95 MU at a cost of
Rs.13682.54, Rs.15680.41 and Rs.16786.53 for the control period years of
FY17, FY18 and FY19 respectively
As regards the cost of power, the BESCOM has submitted that, same is
considered as per the norms defined in contracts (PPAs)/ Regulations
and based on the tariff indicated by KPCL for its Stations and the tariff
determined by the CERC in respect of Central Generating Stations, DVC
Stations and UPCL stations. Further, it is submitted that, the average cost
without escalation, paid towards the supply of NCE during FY15 has
been considered, to arrive at the cost of NCE for the control period FY 17
to FY19.
Commission’s analysis and decisions
After a detailed analysis of the tariff rates claimed by the BESCOM, the
Commission has arrived at the power purchase cost to be allowed in the
ARR for the control period.
The basis for computation of power purchase cost for the control period
FY17 to FY19 is as indicated below:
The fixed charges and variable charges of RTPS Unit 1 to 7, BTPS unit 1
and the Hydel Generating Stations exclusive of Muinirabad, MGHE, Shiva
& Shimsha, are reckoned based on the respective PPAs approved by
the Commission.
The fixed charges and variable charges of Muinirabad, MGHE, Shiva &
Shimsha hydel Stations, BTPS Unit 2 and RTPS unit 8, have been
computed based on the tariffs determined by the Commission and the
Commission’s norms approved in the PPAs.
The fixed charges and variable charges for the Central Generating
Stations, UPCL Station and the Stations of DVC are reckoned based on
the tariffs determined by the CERC and the CERC norms.
cvii
The variable charges of all the thermal stations including CGS stations
are reckoned based on the recent landed cost of fuel and other
variable components.
The variations, if any, in these allowed costs, will be considered during
the FAC exercise / Annual Performance Review of FY17.
Based on the allowed requirement of energy and the power allocation
given by the Government of Karnataka, the Power Purchase quantum
and its costs are approved in the ARR of BESCOM for the control period
FY17 to FY19, as shown in Annexure- 1 & 2.
The consolidated power purchase cost allowed by the Commission vis-a-
vis the power purchase cost as filed by the BESCOM for the control
period FY17 to FY19 is shown the following:
TABLE – 5.16
Approved Power Purchase Cost of BESCOM for FY17
Source of Power
Power Purchase Cost as filed by
BESCOM
Power Purchase Cost approved by
the Commission
Energy in
MU
Cost in Rs
Cr
Per Unit
cost in Rs
Energy in
MU
Cost in Rs
Cr
Per Unit
cost in Rs
KPCL Hydel Energy 3361.41 227.42 0.677 3636.159 407.226 1.120
KPCL Thermal
Energy 11116.11 4918.98 4.425 9912.495 4044.067 4.080
CGS Energy 9463.52 3312.18 3.500 10286.415 3335.994 3.243
UPCL 4513.79 1730.86 3.835 3566.254 1478.399 4.146
Renewable Energy 3497.41 1349.19 3.858 3522.210 1439.082 4.086
Other State Hydel 67.91 32.47 4.780 68.854 32.367 4.701
Short Term 887.08 444.91 5.015 529.872 267.058 5.040
PGCIL & POSOCO
Charges 463.54 0.490 453.606 0.441
KPTCL Transmission
& SLDC and PGCIL
POSOCO Charges 1203.00 0.366 1496.390 0.475
TOTAL 32907.24 13682.54 4.158 31522.276 12954.188 4.110
cviii
cix
TABLE – 5.17
Approved Power Purchase Cost of BESCOM for FY18
Source of Power
Power Purchase Cost as filed by
BESCOM
Power Purchase Cost approved
by the Commission
Energy in
MU
Cost in Rs
Cr
Per Unit
cost in Rs
Energy in
MU
Cost in Rs
Cr
Per Unit
cost in
Rs
KPCL Hydel Energy 3183.18 213.53 0.671 5738.745 523.671 0.913
KPCL Thermal Energy 12768.86 6349.97 4.973 9206.275 3998.329 4.343
CGS Energy 10751.20 3990.51 3.712 10255.214 3374.185 3.290
UPCL 3765.52 1667.94 4.430 3555.437 1490.760 4.193
Renewable Energy 4174.48 1643.39 3.937 4212.770 1710.114 4.059
Other State Hydel 30.82 11.73 3.808 68.645 34.129 4.972
PGCIL & POSOCO
Charges 0.00 600.33 0.558 456.752 0.445
KPTCL Transmission
and SLDC & PGCIL
POSOCO Charges 0.00 1203.00 0.347 1635.780 0.495
TOTAL 34674.06 15680.419 4.522 33037.09 13223.720 4.003
TABLE – 5.18
Approved Power Purchase Cost of BESCOM for FY19
Source of Power
Power Purchase Cost as filed by
BESCOM
Power Purchase Cost approved
by the Commission
Energy in
MU
Cost in Rs
Cr
Per Unit
cost in
Rs
Energy in
MU
Cost in Rs
Cr
Per Unit
cost in
Rs
KPCL Hydel Energy 3183.18 218.68 0.687 5761.407 544.972 0.946
KPCL Thermal Energy 12768.86 6379.84 4.996 10041.118 4399.611 4.382
CGS Energy 11795.23 4406.90 3.736 10295.712 3436.265 3.338
UPCL 3765.52 1684.82 4.474 3569.477 1513.898 4.241
Renewable Energy 4872.52 2141.24 4.395 4910.810 2063.072 4.201
Other State Hydel 155.65 102.31 4.194 68.917 36.244 5.259
PGCIL & POSOCO
Charges 0.00 687.41 0.583 0.00 463.141 0.450
KPTCL Transmission
and SLDC & PGCIL
POSOCO Charges 0.00 1203.00 0.328 0.00 1796.280 0.518
TOTAL 36540.95 16786.53 4.593 34647.440 14253.483 4.113863
cx
The BESCOM shall regulate the quantum and cost of power as allowed
above by the Commission.
However, since the power purchase costs are uncontrollable as per MYT
Regulations, any excess quantum or cost will be trued up in Annual
Performance Review of the respective years.
The Commission has fixed a ceiling rate of Rs.4.50 per unit for short-term
procurement and the same is retained for the year FY17.
The Commission notes that, the procurement of power under short term
has come down significantly over the years. With a view to reduce the
cost of power procurement by avoiding purchase of high cost energy,
the Commission reiterates its earlier directive that, any short-term/
contingent power procurement over and above the approved rate
Rs.4.50 per Kwh, shall be made by the ESCOMs only with the prior
approval of the Commission.
The Commission also reiterates its earlier directive that any short-term or
medium-term power procurement to be made over and above the
approved quantities, shall be made only through competitive bidding
duly complying with the GoI guidelines issued in the matter from time to
time.
5.2.7 RPO target for FY17:
a. Non-Solar RPO:
BESCOM has submitted that it will only be able achieve non-solar RPO of
9.96% as against target of 11% as specified by the Commission vide its
(Procurement of Energy from Renewable Sources)(Third Amendment)
Regulations, 2015 for FY17. BESCOM has proposed to purchase RECs for
cxi
complying with the remaining 1.04% i.e. 340.60 MU of its RPO target at a
cost of Rs.170.30 Crore assuming REC price at Rs.5 per unit.
The Commission has approved power purchase quantum of 31522.26
MU for FY17. The Non-solar RPO target at 11% would be 3467.45 MU. The
Commission has approved purchase of 2840.54 MU from non-solar RE
sources. Further, out of the approved short-term power of 529.87 MU, the
Commission has considered 442.34 MU [as estimated by BESCOM] as the
purchase from non-solar RE sources. Thus, BESCOM would be able to
procure 3282.88 MU as against an estimated RPO of 3467.45 MU,
resulting in shortfall of 184.57 MU, which could be met by the anticipated
surplus of solar energy as discussed in the subsequent paragraphs of this
Chapter. Therefore, the need for purchasing RECs may not arise.
However, in case there is a shortfall based on the actuals, BESCOM may
purchase RECs at the market rates, which would be considered by the
Commission in the APR of FY17.
b. Solar RPO:
BESCOM has proposed to achieve solar RPO of 2.01% [660.62 MU] as
against target of 0.75% as specified by the Commission vide its
(Procurement of Energy from Renewable Sources) (Third Amendment)
Regulations, 2015 for FY17. The Commission has approved power
purchase quantum of 31522.26MU for FY17. The Solar RPO target at 0.75
% would be 236.42MU. The Commission has approved purchase of
681.67 MU of Solar energy. Thus, BESCOM would exceed the solar RPO
by 445.25 MU, which could be utilized to meet the shortfall in non-solar
RPO.
In case, there is any need to buy RECs to fully meet the solar RPO, the
cost thereon would be factored in the APR of FY17.
5.2.8 O & M Expenses for FY17-19:
BESCOM’s Proposal:
cxii
The BESCOM, in its application, has requested the Commission to
consider an inflation index of 8.34%, 8.46% and 8.48% for FY17, FY18 and
FY19 respectively for computing the O&M expenses. This is based on 12
year data (2005 – 2016) of CPI and WPI, in the ratio of 81 : 19, using the
methodology followed by the CERC. Further, the BESCOM has
considered four year CAGR (FY11 to FY15) of 4.50%, for computing the
consumer growth index
Based on the above indices and projected O & M expenses of
Rs.1169.68 Crores for the base year (FY16), the BESCOM has sought the O
& M expenses for FY17-19 as detailed below:
Sl.No. Particulars FY-16 FY-17 FY-18 FY-19
1 Inflation index in% 8.34 8.46 8.48
2 Consumer Growth Index in % 4.50 4.50 4.50
3 BESCOM efficiency in % 1.00 1.00 1.00
4 Base year O&M Cost in Rs.Crs. 1169.68
5 Revision of Scales Impact at 17.93%
in Rs.Crs. 162.87
6 O&M expenses t-year= 0&M (t-
1)*(1+WII+CGI-X) (Rs.Crs) 1308.12 1627.48 1822.43
Further, in the replies to the preliminary observations of the Commission,
BESCOM has requested to allow the expenses that may arise out of
recruitment and revision of wages, which is due from 1st April, 2017.
The breakup of projected O & M expenses, as furnished by the BESCOM,
for the control period, is as follows:
TABLE – 5.19
O &M Expenses - BESCOM’s Proposal
Amount in Rs.Crores
Sl.
No. Particulars FY17 FY18 FY19
1 Employee cost 1059.60 1318.30 1476.20
2 Administrative and General
expenses
183.10 227.80 255.10
3 Repairs and Maintenance
expenses
65.40 81.40 91.10
Total O & M Expenses 1308.10 1627.50 1822.40
cxiii
Commission’s analysis &decision:
As per the norms specified under the MYT Regulations, the O & M
expenses are controllable expenses and the distribution licensee is
required to incur these expenses within the approved limits.
The Commission in its preliminary observations had sought details of the
employees working in each of the year of the control period along with
the cost implications. Further, the Commission had sought the basis for
projecting the employee cost for FY18 citing the revision of pay scales
and contribution to Pension and Gratuity Trust for the increased
projections for FY17-19.
The BESCOM in its replies has stated that, the officers and employees
working in the BESCOM are employed by KPTCL and their retirement is
published annually and hence factoring the employee cost due to
retirements is a difficult task. As regards the factoring employee cost
due to proposed revision of pay scales effective from 1st April, 2017, the
BESCOM has not furnished any justification in support of its claims.
Further, the Commission notes that, BESCOM has claimed contribution to
P&G Trust at 30% and 6.01% towards Pension and Gratuity respectively
without furnishing any information about contribution to employees
covered under newly defined contributory pension scheme (NDCPS)
and without any statement of computation.
In the absence of supporting data for claiming additional employee
cost due to revision of pay scales effective from 1st April, 2017, the
Commission is of the view that such expenses could be factored only
after being incurred by the distribution licensee. Further, the Commission
is of the view that any revision of pay scales should reflect in improved
productivity and efficiency for the betterment of services rendered by
the ESCOMs to its consumers in the State. As per the decisions of the
Commission in the similar situations in the earlier Tariff Orders, the
cxiv
distribution licensees are required to justify any increase in pay scale with
commensurate increase in real employee productivity. Accordingly, the
Commission will look into the issue, at the time of approving the APR for
relevant years when the actual revision of pay scales takes place
instead of loading these costs upfront, in the present ARR exercise,
In view of the above discussion, the Commission has computed the O &
M expenses for FY17-19 duly considering the actual O & M expenses of
FY15 as per the audited accounts (being the latest data available as per
the audited accounts) to arrive at the O & M expenses for the base year
i.e. FY16. The actual O& M expenses for FY15 are Rs.1065.76 Crores.
Considering the Wholesale Price Index (WPI) as per the data available
from the Ministry of Commerce & Industry, Government of India and
Consumer Price Index (CPI) as per the data available from the Labour
Bureau, Government of India and adopting the methodology followed
by CERC with CPI and WPI in a ratio of 80 : 20, the allowable annual
escalation rate for FY17 is computed as follows:
TABLE – 5.20
Computation of Inflation Index for FY17
Year WPI CPI Composite
Series Yt/Y1=Rt Ln Rt
Year
(t-1)
Product [(t-
1)* (LnRt)]
2003 92.6 107 104.12
2004 98.72 111.1 108.624 1.04 0.04 1 0.04
2005 103.37 115.8 113.314 1.09 0.08 2 0.17
2006 109.59 122.9 120.238 1.15 0.14 3 0.43
2007 114.94 130.8 127.628 1.23 0.20 4 0.81
2008 124.92 141.7 138.344 1.33 0.28 5 1.42
2009 127.86 157.1 151.252 1.45 0.37 6 2.24
2010 140.08 175.9 168.736 1.62 0.48 7 3.38
2011 153.35 191.5 183.87 1.77 0.57 8 4.55
2012 164.93 209.3 200.426 1.92 0.65 9 5.89
2013 175.35 232.2 220.83 2.12 0.75 10 7.52
2014 182 246.9 233.92 2.25 0.81 11 8.90
A= Sum of the product column 35.36
B= 6 Times of A 212.19
C= (n-1)*n*(2n-1) where n= No of years of data=12 3036.00
D=B/C 0.07
g(Exponential factor)= Exponential (D)-1 0.0724
e=Annual Escalation Rate (%)=g*100
7.24
cxv
For the purpose of determining the normative O & M expenses for FY17-
19, the Commission has considered the following:
e) The actual O & M expenses incurred as per the audited accounts for
FY15 inclusive of contribution to the Pension and Gratuity Trust to
determine the O & M expenses for the base year FY16.
f) The three year compounded annual growth rate (CAGR) of the
number of installations considering the actual number of installations
as per the audited accounts up to FY15 and as projected by the
Commission for FY16-FY19.
g) The weighted inflation index (WII) at 7.24% as computed above.
h) Efficiency factor at 1% as considered in the earlier two control
periods.
The above said parameters are computed duly considering the same
methodology as was followed in the earlier Tariff Orders of the
Commission and the relevant orders of the Commission on Review
Petitions.
Accordingly, the normative O & M expenses for FY17-19 are as follows:
TABLE – 5.21
Approved O & M expenses for FY17-19
Particulars FY16 FY17 FY18 FY19
No. of Installations 10574032 11162023 11802269
CGI based on 3 Year CAGR 6.01% 5.73% 5.57%
Inflation index 7.24% 7.24% 7.24%
Base Year O&M expenses (as per
actuals of FY15 )-Rs.Crs 1201.45
Total allowable O&M Expenses-Rs.Crs 1348.61 1510.01 1688.27
Since, the base year data includes the O & M expenses inclusive of
contribution to the P & G Trust, the Commission has not considered
allowing contribution to the P & G Trust separately.
cxvi
Thus, the Commission decides to approve O&M expenses of Rs.1348.61
Crores for FY17, Rs.1510.01 Crores for FY18 and Rs.1688.27 Crores for FY19.
cxvii
5.2.9 Depreciation:
BESCOM’s Proposal:
The BESCOM, in its application has claimed the depreciation for the
control period based on the following assumptions:
1) Actual closing Gross Fixed Assets (GFA) of FY-15 as per audited
accounts of FY-15.
2) Estimated Additions and Retirement of assets for FY-16 are based on
the accounts available up to 30.09.2016 and estimation for the next
half year.
3) 75% of the capex envisaged during each year of the Control period
is booked in that year and 90% of the booked cost will be
capitalized.
4) Capital work in progress at the end of previous year being
categorized in the succeeding year of the Control period.
5) Depreciation rates as specified by CERC is applied on 90% of the
Closing Gross fixed Asset of each year of the control period.
6) Depreciation withdrawn on the assets created on account of
contribution /subsidies as per Accounting Standard-12 at the same
rate of depreciation as at the end of each year for the control
period.
Accordingly, BESCOM has claimed the depreciation for FY17-19 as
detailed below:
TABLE – 5.22
Depreciation-FY17-19- BESCOM’s Submission
Amount in Rs.Crores
Particulars FY-16 FY-17 FY-18 FY-19
Opening Gross Fixed Asset (GFA) 7074.36 8541.36 9713.44 10378.47
Add: Additions during the year 1567.00 1032 515.03 423.23
cxviii
Less: Retirement 100.00 110 120 130
Add. Consumer Contribution 240.00 250 270 290
Closing GFA 8781.36 9713 10378 10962
90% of GFA 7903.23 8742 9341 9866
Average Dep. Rate (In %) 4.58% 4.58% 4.58% 4.58%
Depreciation 361.97 400 428 452
Less: Depreciation withdrawn from
Consumer contribution/subsidies
plus withdrawal of depreciation
(Rs.1711 Crs. is the consumer
contribution for FY15 and consumer
contribution added for FY16 is
Rs.240 Crs.)
80.42 91 102 114
Depreciation 281.55 310 326 338
Commission’s analysis and decision:
In accordance with the provisions of the MYT Regulations and
amendments issued thereon, the Commission has determined the
depreciation for FY17-19 considering the following:
a) The actual rate of depreciation of category wise assets has been
determined considering the depreciation and gross block of opening
and closing balance of fixed assets, as per the audited accounts for
FY15.
b) The actual rate of depreciation, so arrived at, is considered to allow
the depreciation on the gross block of fixed assets projected by
BESCOM, in its filing for FY17-19 duly considering the projection as
approved by the Commission for FY16, in its Tariff Order dated 2nd
March, 2015.
c) The depreciation on account of assets created out of consumers
contribution / grants are considered (deducted),based on the
opening and closing balance of such assets duly considering the
addition of assets as proposed by the BESCOM, at the weighted
average rate of depreciation as per actuals in FY15.
Accordingly, the depreciation for FY17-19 is arrived at as follows:
cxix
TABLE – 5.23
Approved Depreciation for FY17-19
Amount in Rs. Crores
Particulars FY17 FY18 FY19
Buildings 4.03 4.55 4.92
Civil 0.16 0.17 0.18
Other Civil 0.07 0.08 0.09
Plant & M/c 97.83 109.27 116.25
Line, Cable Network 294.78 327.75 350.80
Vehicles 1.06 1.06 1.05
Furniture 0.57 0.61 0.63
Office Equipments 0.77 0.87 0.95
Intangible assets 0.01 0.01 0.01
Sub Total 399.26 444.35 474.87
Depreciation Withdrawn AS12 127.98 144.15 160.32
Total 271.29 300.20 314.54
Thus, the Commission decides to approve an amount of Rs.271.29 Crores,
Rs.300.20 Crores and Rs.314.54 Crores towards depreciation for FY17,
FY18 and FY19 respectively.
5.2.10 Interest on Loans:
BESCOM’s proposal:
BESCOM in its application has stated that, the Interest on loan for the
control period are computed based on the following assumptions:
a. Loan outstanding as on 31.03.2015 as per provisional accounts duly
considering the rate of interest and terms of repayment.
b. For FY-16, loan existing as on 30.09.2015 and the estimation for the
next half year is considered for computation of interest.
c. For financing of future capital cost of the projects, a Debt: Equity
ratio of 70:30 is adopted as per the norms framed by the Commission
under Clause 3.7.1 of the MYT regulations.
cxx
d. The new loans proposed to be borrowed from the Central
Government Financial Institutions at a rate of 11.75% with three years
moratorium and tenure of 10 years.
e. The interest on the existing loans are computed on the basis of actual
rate of weighted average rate of interest of FY15.
Based on the above assumptions, the BESCOM has requested to
approve interest on loan capital for FY17-19 as follows:
TABLE – 5.24
Interest on Loan– BESCOM’s Proposal
Amount in Rs. Crores
Commission’s analysis and decision:
The Commission notes that based on the approved capex for FY17-19
and the loan proposals of the BESCOM and the replies to the
Commission’s preliminary observations/validation meeting, the
requirement of loan capital is Rs.697.65 Crores, Rs.674.00 Crores and
Rs.410.00 Crores for FY17, FY18 and FY19 respectively. Further, the
Commission has considered the repayment of loan as proposed by the
BESCOM at Rs.352.36 Crores, Rs.382.68 Crores and Rs.382.48 Crores for
FY17, FY18 and FY19 respectively.
As per the audited accounts and as per the APR of FY15, the BESCOM
had incurred interest on capital loan at a weighted average rate of
interest of 8.61% p.a. This rate of interest is considered for the existing
loan balances for which interest has to be factored during FY17. Further,
for the years FY18 and FY19, the weighted average rate of interest of the
preceding year has been considered on the existing loan balances. The
Commission notes that, as per Format D-17, BESCOM has proposed
Particulars FY-17 FY-18 FY-19
Interest on existing loan Capital 169.87 136.54 103.23
Interest on New loan Capital 77.81 197.75 266.12
Total 247.68 334.29 369.35
cxxi
capex amount of Rs.1147.00 Crores for FY17, Rs.1108.00 Crores for FY18
and Rs.777.00 Crores for FY19. However, as discussed in para 5.2.1, the
Commission considers new loans of Rs.697.65 Crores, Rs.674 Crores and
Rs.410 Crores for FY17, FY18 and FY19 respectively. The Commission has
considered new loans, in compliance of the debt equity ratio of 70 : 30
as in MYT Regulations.
The present interest rates by commercial banks and financial institutions
are charged mainly on the basis of base rate of interest declared by the
RBI from time to time. Hence, the Commission has considered the base
rate plus spread of certain basis points, depending upon the tenure of
the loan. As per the data furnished by the BESCOM, the interest on new
loans is proposed at a rate of 12.5%. The Commission notes that, the
interest rates proposed by BESCOM are comparatively on a higher side.
BESCOM needs to initiate financial prudence measures so as to avail
loans at comparatively lower interest rates and reduce its interest
burden on the consumers. However, considering the present base rate
of interest with spread of 200 basis points and noting a downward trend
in the interest rate, the Commission decides to allow an interest rate of
11.25% for FY17-19 for new long term loans. It shall be noted that, the
rate of interest now considered by the Commission on the new capital
loans for the control period is subject to review during APR and revision
of ARR of the relevant years of the control period.
Accordingly, the approved interest on loans for FY17-19 are as follows:
TABLE – 5.25
Approved Interest on Loans for FY17-19
Amount in Rs.Crores
Particulars FY17 FY18 FY19
Opening Balance long term loans 3005.12 3350.41 3641.73
Add new Loans 697.65 674 410
Less: Repayments 352.36 382.68 382.48
Total loan at the end of the year 3350.41 3641.73 3669.25
Average Loan 3177.77 3496.07 3655.49
Interest on long term loans 282.84 319.09 337.99
Weighted average rate of interest in % 8.90% 9.13% 9.25%
cxxii
Interest on long term loans 282.84 319.09 337.99
Thus, the Commission decides to approve interest of Rs.282.84, Rs.319.09
Crores and Rs.337.99 Crores on long term loans for FY17, FY18 and FY19
respectively.
5.2.11 Interest on Working Capital:
BESCOM’s proposal:
BESCOM has claimed interest on working capital based on the norms
prescribed in the MYT Regulations and considering the rate of interest as
per the short term prime lending rate of SBI at 14.45% p.a. The interest on
working capital computed by BESCOM are as follows:
TABLE – 5.26
Interest on Working Capital – BESCOM’s Submission
Amount in Rs. Crores
Particulars FY-17 FY-18 FY-19
1/12th Operation and Maintenance 109.01 135.62 151.87
1% of Gross fixed assets at the beginning
of the year 97.13 103.78 109.62
2 months Receivables 2,377 2,475 2,579
Estimated Working Capital 2583.24 2714.75 2840.90
Rate of Interest 14.45% 14.45% 14.45%
Interest on working capital 373.28 392.28 410.51
Commission’s analysis and decision:
As per the norms specified under the MYT Regulations, the Commission
has computed the interest on working capital which consists of one
month’s O & M expenses, 1% of opening GFA and two months’ revenue.
Further, the Commission notes that the comments made by BESCOM, in
its application on the methodology of computation of interest on
working capital, is not relevant in the context of ARR. Further, the
Regulations have been framed to encourage efficiency in operation
keeping in view the spirit of the provisions of the Electricity Act, 2003.
Hence, BESCOM is required to comply with the provisions of the
Regulations.
cxxiii
The present interest rates by commercial banks and financial institutions
are charged mainly on the basis of base rate of interest declared by RBI
from time to time and the earlier concept of charging interest on the
basis prime lending rate of SBI does not exist. Hence, the Commission
would consider base rate plus spread of certain basis points depending
upon the tenure of the loan. As per the BESCOM’s application, it is
stated that short term loans for FY15 has been availed at a weighted
average rate of interest of 10.98%. The Commission notes that, BESCOM
needs to initiate financial prudence measures in availing short term loans
so that the interest burden on its consumers is reduced. However,
considering the base rate of interest with spread of 250 basis points and
taking note of the downward trend in the interest rate, the Commission
decides to allow short term loans at a normative interest rate of 11.75%
for FY17-19.
Accordingly, the approved interest on working capital for FY17-19 is as
follows:
TABLE – 5.27
Approved Interest on Working Capital for FY17-19
Amount in Rs. Crs
Particulars FY 17 FY 18 FY 19
One-twelfth of the amount of O&M Expenses 112.38 125.83 140.69
Opening Gross Fixed Assets (GFA) 7568.30 8740.30 9405.34
Stores, materials and supplies 1% of Opening
balance of GFA 75.68 87.40 94.05
One-sixth of the Revenue 2416.23 2542.25 2676.57
Total Working Capital 2604.29 2755.48 2911.31
Rate of Interest (% p.a.) 11.75% 11.75% 11.75%
Interest on Working Capital 306.00 323.77 342.08
Thus, the Commission hereby approves interest on working capital of
Rs.306.00, Rs.323.77 Crores and Rs.342.08 Crores for the control period
years FY17, FY18 and FY19 respectively.
5.2.12 Interest on Consumer Deposit:
BESCOM’s proposal:
cxxiv
BESCOM in its application has claimed interest on consumer security
deposit duly considering the addition of deposits for each year of the
control period FY17-19 based on Bank rate of 9 per cent per annum as
per the Monetary and Credit Information Review, Volume VIII, Issue 10th
April, 2012. The interest on consumer deposit projected for the control
period is as follows:
TABLE – 5.28
Interest on Consumer Deposits – BESCOM’s Submission
Amount in Rs. Crores
Particulars FY-17 FY-18 FY-19
Consumer Security Deposit 2960 3174 3388
Rate of Interest 9.00% 9.00% 9.00%
Interest on consumer security
deposit 266.4 285.66 304.92
Commission’s analysis and decision:
In accordance with the KERC (Interest on Security Deposit) Regulations
2005, the interest rate on consumer security deposit to be allowed is the
bank rate prevailing on the 1st of April of the financial year for which
interest is due. As per Reserve Bank of India notification dated 29th
September, 2015, the bank rate is 7.75%. This being the latest available
bank rate, the Commission has considered the same, for computation of
interest on consumer deposits for FY17-19.
The Commission has considered the consumer security deposits as per
audited accounts of FY15 and half yearly accounts of FY16 for onward
projection for FY17-19. The interest on consumer deposits for FY17-19 are
as follows:
TABLE – 5.29
Approved Interest on Consumer Security Deposits for FY17-19
Amount in Rs. Crores
Particulars FY17 FY18 FY19
Opening balance of consumer security
deposits 3171.94 3471.94 3771.94
Interest on consumer security deposits as
filed 266.4 285.66 304.92
Rate of Interest as filed 9.00% 9.00% 9.00%
cxxv
Rate of Interest at bank rate to be allowed
as per Regulations 7.75% 7.75% 7.75%
Approved Interest on average Consumer
Security Deposit 257.45 280.70 303.95
Thus, the Commission decides to approve interest on consumer security
deposits of Rs.257.45, Rs.280.70 Crores and Rs.303.95 Crores for FY17,
FY18 and FY19 respectively.
5.2.13 Other Interest and Finance Charges:
BESCOM has claimed an amount of Rs.10.19 Crores towards other
interest and finance charges for each year of the control period FY17-19.
Considering, the expenditure on this item in the earlier years, the
Commission decides to allow an amount of Rs.10.19 Crores towards
interest and finance charges for each of the years during the control
period FY17-19.
5.2.14 Interest and other expenses Capitalized:
BESCOM has claimed an amount of Rs.80.00 Crores, Rs.82.00 Crores and
Rs.86.00 Crores towards capitalization of interest and other expenses
during FY17, FY18 and FY19 respectively. Considering, the capital
expenditure incurred and capitalized in the previous years, the
Commission decides to allow capitalization of interest and other
expenses as proposed by BESCOM for the control period FY17-19.
The abstract of approved interest and finance charges for FY17-19 are
as follows:
TABLE – 5.30
Approved Interest and finance charges for FY17-19
Amount in Rs. Crores
Particulars FY17 FY18 FY19
Interest on Loan Capital 282.84 319.09 337.99
Interest on Working Capital 306.00 323.77 342.08
Interest on Consumers Security Deposit 257.45 280.70 303.95
cxxvi
Other Interest & Finance Charges 10.19 10.19 10.19
Less Interest & other expenses capitalized (80.00) (82.00) (86.00)
Total Interest & Finance Charges 776.49 851.75 908.21
cxxvii
5.2.15 Return on Equity:
BESCOM’s proposal:
BESCOM in its application has claimed RoE for the control period FY17-19
based on the equity alone without considering the share deposits,
reserves and surplus and recapitalized amount of security deposit as
detailed below:
Amount in Rs. Crores
Particulars FY-17 FY-18 FY-19
Equity held as on
31.03.2016 546.91 546.91 546.91
Rate of Return 15.5% 15.5% 15.5%
Proposed Return 84.77 84.77 84.77
Commission’s analysis and decision:
The Commission has considered the actual amount of share capital,
share deposits and reserves & surplus as per the audited accounts for
FY15 and the additional share deposit reported in the half yearly
accounts for FY16 for arriving at the allowable equity base for the control
period FY17-19.
The Commission, in accordance with the provisions of the MYT
Regulations, has considered 15.5% of Return on Equity duly grossed up
with the applicable Minimum Alternate Tax (MAT) of 21.342%. This works
out to 19.706% per annum. Further, as per the decision of the
Commission in the Review Petition No.6/2013 and Review Petition 5/2014,
the Return on Equity is to be computed based on the opening balances
of share capital, share deposits and reserves and surplus. Further, an
amount of Rs.100.00 Crores of recapitalized consumer security deposit as
net-worth is considered as per the orders of the Hon’ble Appellate
Tribunal for Electricity in Appeal No.46/2014.
Further, in compliance with the Orders of the Hon’ble ATE in Appeal
No.46/2014, wherein it is directed to indicate the opening and closing
balances of gross fixed assets along with break-up of equity and loan
cxxviii
component in the Tariff Order henceforth, the details of GFA, debt and
equity (net-worth) for FY17-19 are indicated as follows:
TABLE – 5.31
Status of Debt Equity Ratio for FY17-19
Amount in Rs. Crores
Year Particulars GFA Debt
Equity
(Net-
worth)
Normative
Debt @ 70%
of GFA
Normative
Equity @
30% of GFA
%age of
actual
debt on
GFA
%age of
actual
equity
on GFA
FY17 Opening
Balance
7568 3005 178 39.71% 2.86%
Closing
Balance
8740 3350 205 6118 2622 38.33% 2.35%
FY18 Opening
Balance
8740 3350 205 38.33% 2.35%
Closing
Balance
9405 3642 238 6583 2822 38.72% 2.53%
FY19 Opening
Balance
9405 3642 238 38.72% 2.53%
Closing
Balance
9989 3669 274 6992 2997 36.73% 2.74%
From the above table it is seen that the debt equity ratio is within the
normative debt equity ratio of 70 : 30 on the closing balances of GFA for
each year of the control period. Further, the Commission would review
the same during the Annual Performance Review, for each year of the
control period, based on the actual data, as per the audited accounts.
Accordingly, the Return on Equity that could be approved for FY17-19,
works out as follows:
TABLE – 5.32
Approved Return on Equity for FY17-19
Amount in Rs. Crores
Particulars FY17 FY18 FY19
Opening Balance of Paid Up Share
Capital 546.915 546.915 546.915
Share Deposit 188.03 188.03 188.03
Reserves and Surplus (456.82) (429.21) (397.32)
Less Recapitalised Security Deposit (100.00) (100.00) (100.00)
Total Equity 178.13 205.74 237.62
Approved Return on Equity with MAT 35.10 40.54 46.83
cxxix
Thus, the Commission decides to approve Return on Equity of Rs.35.10
Crores, Rs.40.54 Crores and Rs.46.83 Crores for FY17, FY18 and FY19
respectively.
5.2.16 Other Income:
BESCOM’s proposal:
BESCOM has claimed other income for the control period as detailed
below:
TABLE – 5.33
Other Income - BESCOM’s Proposal
Amount in Rs. Crores
Particulars FY-17 FY-18 FY-19
Interest on Bank Deposits 0.00 0.00 0.00
Profit on sale of Stores 0.84 0.84 0.84
Sale of Scrap 0.27 0.27 0.27
Rental from Staff quarters 2.15 2.37 2.6
Value of materials found excess
during physical verification 0.33 0.3 0.33
Rebate for collection of Electricity
duty 3.21 3.34 3.47
Incentives 0.00 0.00 0.00
Subsidy 0 0 0
Miscellaneous recoveries 31.86 35.05 38.55
Total 38.66 42.17 46.06
Commission’s analysis and decision:
The other income received by the BESCOM mainly includes income from
miscellaneous recoveries, interest on bank deposits, rent from staff
quarters and sale of scrap, profit on sale of stores besides incentives for
timely payment of power purchase bills. The actual ‘other income’ as
per the audited accounts for FY15 is Rs.205.24 Crores. The Commission
notes that, the BESCOM, in its projection of other income for the control
period has not included income from interest on fixed deposits and
estimated incentives likely to be earned on account of timely payment
of power purchase bills.
Based on the other income earned by the BESCOM in the past three
years, the average other income works out to Rs.203.00 Crores per year.
cxxx
Considering the same for FY17 and nominal escalation of 5% for next two
years, the Commission decides to approve other income of Rs.203.00
Crores for FY17, Rs.213.00 Crores for FY18 and Rs.223.00 Crores for FY19.
5.2.17 Fund towards Consumer Relations / Consumer Education:
The Commission has been allowing an amount of Rs.1.00 Crore per year
towards consumer relations / consumer education. This amount is
earmarked to conduct consumer awareness and grievance redressal
meetings periodically and institutionalize a mechanism for addressing
common problems of the consumers. The Commission has already
issued guidelines for consumer education and grievance redressal
activities.
The Commission decides to continue providing an amount of Rs.1.00
Crore for each year of the control period FY17-19, towards meeting the
expenditure on consumer relations / consumer education.
The Commission directs BESCOM to furnish a detailed plan of action for
utilization of this amount and also maintain a separate account of these
funds and furnish the same at the time of APR.
5.3 Treatment of Regulatory Asset & Carrying Cost:
BESCOM in its application has claimed an amount of Rs. 541.97 as
Regulatory asset. Further, BESCOM has stated that as per the
Commission’s Order dated 12th May, 2014, an amount of Rs.524.53
Crores was payable by the Government of Karnataka towards
additional subsidy for FY13 for having supplied energy to IP Sets and
BJ/KJ Consumers in excess of the quantum of energy approved in the
ARR for FY13. However, BESCOM has reported that the said amount is not
yet considered by the Government of Karnataka and hence has
cxxxi
claimed an amount of Rs.127.95 Crores as carrying cost at 12% on
Rs.524.53 Crores yet to be received from the Government of Karnataka
and the Regulatory Asset of Rs.541.97 Crores.
It is to be noted that, the Commission in its Tariff Order dated 12th May,
2014, has determined an amount of Rs.524.53 Crores as payable by the
Government of Karnataka towards additional subsidy for FY13. The
amount being receivable from the Government of Karnataka, BESCOM
cannot claim carrying cost to be recovered from the consumers, in the
ARR for FY17.
The Commission notes that as per the Tariff Order dated 12thMay, 2014
the deficit of Rs.627.13 Crores for FY13 was determined duly factoring the
additional subsidy of Rs.524.53 Crores payable by the Government of
Karnataka. This deficit was included in the ARR for FY15. Further, while
approving the ARR for FY15, an amount of Rs.611.00 Crores was set aside
as regulatory asset to be recovered in the tariff over the next two years
(FY16 & FY17). The Commission had decided to allow carrying cost at
12% p.a. on the regulatory asset to be assessed at the time of Annual
Performance Review for FY15 and FY16. Accordingly, in the present APR
for FY15, as discussed in the previous chapter of this Order, the revenue
earned was sufficient enough to meet the expenses incurred during FY15
excluding the penalty levied on account of increase in distribution losses
during FY15. Hence, allowing carrying cost on the regulatory asset
which was the notional deficit for FY15 does not arise.
Further, the Commission in its Tariff Order dated 2nd March, 2015 had
decided to carry forward a Regulatory asset of Rs.541.97 Crores which
was determined as detailed below:
Treatment of Regulatory Asset
Sl.
No Particulars Rs. Crores
1 Regulatory asset as per Commission’s Order dated 12th May, 2014. 611.00
2 Gap in revenue on APR of FY14 367.33
3 Gap in revenue as per ARR for FY16. 27.46
4 Total Gap for FY16 1005.79
5 Additional revenue allowed by revision of tariff in FY16 455.86
6 Balance unfilled gap in revenue 549.93
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7 Amount disallowed on imprudent capex (7.96)
8 Regulatory asset to be recovered in FY17 541.97
As stated in the above table, the Commission has already considered
the uncovered gap of Rs.611.00 Crores in the previous Tariff Order dated
2nd March, 2015 while determining the ARR and gap in revenue for FY16.
Hence, Commission decides to include net amount of Rs.541.97 Crores
of Regulatory Asset set aside in the Tariff Order dated 2nd March, 2015, in
the ARR for FY17.
cxxxiii
5.4 RP No.5/2014 and RP No.6/2013:
The Commission in its order dated 10th December, 2015 in R.P. No.6/2013
and Order dated 7th January, 2016 in the R.P. No.5/2014 has decided to
factor an amount of Rs.17.12 Crores and Rs.10.99 Crores respectively in
the ARR of FY17.
In pursuance of these Orders, an amount of Rs.28.11 Crores has been
factored in the ARR for FY17.
5.5 Abstract of ARR for FY17-19:
In the light of the above analysis and decisions of the Commission, the
following is the approved ARR for the control period FY17-19:
TABLE – 5.34
Approved ARR for FY17-19 Amount in Rs.Crores
Sl.
No Particulars FY17 FY18 FY19
Revenue at existing tariff
1 Revenue from tariff and Misc. Charges 12865.95
2 Tariff Subsidy 1631.40
3 Total Existing Revenue 14497.35 0.00 0.00
Expenditure in Rs Crs
4 Power Purchase Cost 11457.80 11587.95 12457.21
5 Transmission charges of KPTCL 1487.22 1622.58 1781.99
6 SLDC Charges 9.17 13.20 14.29
7
Power Purchase Cost including cost of
transmission 12954.19 13223.73 14253.49
8 O&M Expenses 1348.61 1510.01 1688.27
9 Depreciation 271.29 300.20 314.54
Interest & Finance charges
10 Interest on Capital Loans 282.84 319.09 337.99
11 Interest on Working capital Loans 306.00 323.77 342.08
12 Interest on consumer security deposits 257.45 280.70 303.95
13 Other Interest & Finance charges 10.19 10.19 10.19
14 Less interest & other expenses capitalised 80.00 82.00 86.00
15 Total Interest & Finance charges 776.49 851.75 908.21
16 Other Debits 0.00 0.00 0.00
17 Net Prior Period Debit/Credit 0.00 0.00 0.00
18 Return on Equity 35.10 40.54 46.83
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19
Funds towards Consumer
Relations/Consumer Education 1.00 1.00 1.00
20 Other Income 203.00 213.00 223.00
21 ARR 15183.68 15714.23 16989.34
22 Deficit for FY15 carried forward 11.21
23
Regulatory asset as per T.O. dtd.
02.03.2015 541.97
24
Additional allowable expenses as per
decision of KERC in RP5/2014 & RP6/2013 28.11
25 Net ARR 15764.97 15714.23 16989.34
5.6 Segregation of ARR into ARR for Distribution Business and ARR for Retail
Supply Business:
BESCOM in its application has proposed the following segregation of
consolidated ARR into ARR for Distribution Business and ARR for Retail
Supply Business based on its internal committee report:
TABLE – 5.35
Segregation of ARR – BESCOM’s Submission
Particulars Distribution
Business
Retail Supply
Business
Power purchase cost
100%
R&M Expenses 62% 38%
Employee Expenses 52% 48%
A&G Expenses 62% 38%
Depreciation 71% 29%
Interest & Finance
Charges 16% 84%
Other Debits (incl.
Prov. for Bad debts) 53% 47%
Other (Misc.)-net prior
period credit 19% 81%
Other Income 51% 49%
ROE 100%
Commission’s Analysis and Decisions:
BESCOM in its application has proposed the segregation of ARR into ARR
for Distribution Business and ARR for Retail Supply Business based on its
internal committee report. The Commission notes that, BESCOM has
cxxxv
proposed the same segregation as proposed in the previous control
periods.
Since no new proposal with justification has been furnished by BESCOM,
the Commission decides to continue with the existing ratio of
segregation of ARR as detailed below:
TABLE – 5.36
Approved Segregation of ARR – FY17 - 19
Particulars Distribution
Business
Retail Supply
Business
O&M 56% 44%
Depreciation 88% 12%
Interest on Loans 100% 0%
Interest on Consumer Deposits 0% 100%
RoE 50% 50%
GFA 88% 12%
Non-Tariff Income 19% 81%
Accordingly, the following is the approved ARR for Distribution Business
and Retail supply business:
TABLE – 5.37 APPROVED REVISED ARR FOR DISTRIBUTION BUSINESS – FY17 - 19
Amount in Rs. Crores
Sl.
No Particulars
FY17 FY18 FY19
1 O&M Expenses 755.22 845.60 945.43
2 Depreciation 238.73 264.18 276.80
Interest & Finance Charges
3 Interest on Capital Loans 282.84 319.09 337.99
4 Interest on Working capital loans 35.09 38.23 41.00
5 Interest on consumer security deposits 0.00 0.00 0.00
6 Other Interest & Finance charges 10.19 10.19 10.19
7 Less interest & other expenses capitalised 80.00 82.00 86.00
8 ROE 17.55 20.27 23.41
9 Other Income 38.57 40.47 42.37
10 Provision for taxes 0.00 0.00 0.00
11 NET ARR 1221.06 1375.09 1506.45
cxxxvi
TABLE – 5.38
APPROVED ARR FOR RETAIL SUPPLY BUSINESS – FY17 - 19
Amount in Rs.Crores
Sl.
No Particulars FY17 FY18 FY19
1 Power Purchase 11457.80 11587.95 12457.21
2 Transmission Charges 1496.39 1635.78 1796.28
3 O&M Expenses 593.39 664.40 742.84
4 Depreciation 32.55 36.02 37.74
Interest & Finance Charges
5 Interest on Capital Loans 0.00 0.00 0.00
6 Interest on Working capital Loans 270.91 285.54 301.08
7 Interest on consumer security deposits 257.45 280.70 303.95
8 ROE 17.55 20.27 23.41
9 Other Income 164.43 172.53 180.63
10
Fund towards Consumer Relations /
Consumer Education 1.00 1.00 1.00
11 NET ARR 13962.62 14339.14 15482.89
5.7 Gap in Revenue for FY17:
As discussed above, the Commission decides to approve the Annual
Revenue Requirement (ARR) of BESCOM for its operations in FY17 at
Rs.15764.97 Crores as against BESCOM’s application proposing an ARR of
Rs.17556.47 Crores. This ARR includes an amount of Rs.11.21 Crores which
is determined as the deficit in FY15 as discussed in Chapter-4. Based on
the existing retail supply tariff, the total realization of revenue will be
Rs.14497.35 Crores which is Rs.1267.62 Crores less than the projected
revenue requirement for FY17.
The net ARR and the gap in revenue for FY17 are shown in the following
table:
TABLE – 5.39
Revenue gap for FY17
Particulars FY17
Net ARR including carry forward gap of FY15 (in Rs. Crores) 15764.97
Approved sales (in MU) 26472.74
Average cost of supply for FY17 (in Rs./unit) 5.96
Revenue at existing tariff (in Rs. Crores) 14497.35
Gap in revenue for FY17 (in Rs. Crores) (1267.62)
cxxxvii
The determination of revised retail supply tariff on the basis of the above
approved ARR is detailed in the following Chapter.
5.8 Application for Additional Revenue Requirement for FY17:
BESCOM’s Proposal:
The BESCOM, in its application dated 16th March, 2016, filed on 22nd
March, 2016, seeking additional ARR for FY17, has submitted that:
1. The Second Transfer Scheme Rules dated 31.05.2002 were issued by
the GoK, for transfer of assets and liabilities and personnel of KPTCL to
ESCOMs. According to Rule 4(13) of these Rules, the State
Government is responsible for funding the pension and other liabilities
of the personnel as on the date of Second Transfer i.e. 31.05.2002
and sub rule 13(2)(b) provides for establishment of a Pension Trust for
managing the fund.
2. The GoK, vide its order dated 19.12.2002, has ordered constitution of
the Pension and Gratuity Trust and also decided to adopt “Pay as
you go” approach, in funding the pension and gratuity requirement.
3. The GoK vide its letter dated 25.02.2016, has informed that against
the proposed pension and gratuity contribution of Rs.996.39 Crores
for FY17 and the arrears of pension contribution of Rs.2047.84 Crores
payable to KPTCL and the ESCOMs, the Finance Department (FD)
has agreed to provide Rs.550 Crores for meeting the pension liability.
As there is difference between the proposed requirement and the
availability as indicated by the FD for FY17, the Pension Trust is
directed to work out the amount of contribution to be recovered
through tariff, considering the indicative amount of contribution
available from the Government.
4. It is submitted by BESCOM that, as worked out by the Pension Trust,
an amount of Rs.729.37 Crores (Arrears of Rs.599.29 Crores and
Rs.130.08 Crores for FY17), has to be recovered through tariff.
5. Further, BESCOM has submitted that, additional power purchase cost
has to be incurred by the ESCOMs due to outage of Sharavathi
cxxxviii
generating Station and consequent revision of availability of energy,
resulting in increase in cost of power purchases to an extent of
Rs.195.30 Crores, for FY17.
Accordingly, BESCOM has filed an application claiming an additional
ARR of Rs.448.28 Crores towards pension and gratuity contribution and
Rs.195.30 Crores towards additional power purchase cost, to be
recovered through tariff.
Commission’s views and decision:
The Commission proceeds to dispose of the application filed by
BESCOM, as follows:
a) The application for additional ARR has been filed on 16th March,
2016, that is much after completion of the process of calling for
objections on the original tariff application and furnishing replies
thereon. The Commission has also completed the process of public
consultation by holding a public hearing, in respect of BESCOM, on
26th February, 2016.
b) As per Rule 4(13) of the Karnataka Electricity Reforms (Transfer of
Undertakings of KPTCL and its Personnel to Electricity Distribution and
Retail Supply Companies) Rules, 2002, notified by the Government on
31.05.2002, the State Government is liable for funding the pension
and gratuity liability of existing pensioners as on the effective date of
Second Transfer Scheme.
c) The Government, as per its order dated 19.12.2002, has adopted
“pay as you go” approach to meet the pension and gratuity
requirements of existing pensioners on the effective date of second
transfer Scheme. With this arrangement, the GoK is liable to meet the
pension and gratuity requirement of existing pensioners as noted
above. Hence, this liability cannot be passed on to the consumers,
through tariff.
cxxxix
d) The Commission has considered the energy availability from
Sharavathi generating station as projected by the KPCL, after the fire
accident and the same is factored in the power purchase cost of
BESCOM.
In view of the above, the Commission is unable to accept the
application for approval of additional ARR towards pension and gratuity
of the said pensioners. Accordingly, the said application stands
disposed of.
cxl
CHAPTER – 6
DETERMINATION OF TARIFF FOR FY17
6.0 BESCOM’S Proposal and Commission’s Analysis for FY17:
6.1 Tariff Application
As discussed in the preceding Chapters, BESCOM has projected an
unmet gap in revenue of Rs.2810.01 Crores for FY17. In order to bridge
this gap in revenue, BESCOM, in its Tariff Application, has proposed a
tariff increase of 102 paise per unit in respect of all the categories of
consumers.
6.2 Statutory Provisions guiding determination of Tariff
As per Section 61 of the Electricity Act 2003, the Commission is guided
inter-alia, by the National Electricity Policy, the Tariff Policy and the
following factors, while, determining the tariff so that,
the distribution and supply of electricity are conducted on
commercial basis;
competition, efficiency, economical use of resources, good
performance, and optimum investment are encouraged;
the tariff progressively reflects the cost of supply of electricity, and also
reduces and eliminates cross subsidies within the period to be
specified by the Commission;
efficiency in performance is to be rewarded : and
that a multi-year tariff framework is adopted:
Section 62(5) of the Electricity Act 2003, read with Section 27(1) of the KER
Act 1999, empowers the Commission to specify, from time to time, the
methodologies and the procedure to be observed by the licensees in
calculating the Expected Revenue from Charges (ERC). The Commission
determines the Tariff in accordance with the Regulations and the Orders
issued by the Commission from time to time.
cxli
6.3 Consideration for Tariff setting:
The Commission has considered the following relevant factors for
determination of retail supply tariff:
a) Tariff Philosophy:
As discussed in the earlier tariff orders, the Commission continues to
fix tariff below the average cost of supply for consumers whose ability
to pay is considered inadequate and fix tariff at or above the
average cost of supply for categories of consumers whose ability to
pay is considered to be higher. As a result the system of cross subsidy
continues. However, the Commission has taken due care to
progressively bring down the cross subsidy levels as envisaged in the
Tariff Policy of the Government of India.
b) Average Cost of Supply:
The Commission has been determining the retail supply tariff on the
basis of the average cost of supply. The KERC (Tariff) Regulations,
2000 require the licensees to provide details of embedded cost of
electricity voltage / consumer category-wise. The distribution
network of Karnataka is such that, it is difficult to segregate the
common cost between voltage levels. Therefore, the Commission
has decided to continue the average cost of supply approach for
recovery of the ARR. With regard to the indication of voltage- wise
cross subsidy with reference to the voltage wise cost of supply, the
decision of the Commission is noted in the subsequent para of this
Chapter.
c) Differential Tariff:
Beginning with its tariff order dated 25th November, 2009, the
Commission has been determining differential retail supply tariff for
consumers in urban and rural areas. The Commission decides to
continue the same in the present order also.
cxlii
6.4 New Tariff Proposals by BESCOM
BESCOM, in its tariff application has made the following new proposals:
1. Increase in Fixed Charges:
BESCOM has proposed to increase the fixed cost by Rs.10/- (Rupees Ten
only) Per KVA/HP/KW for all the consumers.
Commission’s Analysis and decisions:
On an analysis of the revenue at existing tariff of BESCOM, the
Commission notes that the total amount of fixed charges likely to be
recovered on the projected sales works out to Rs.1682.09 Crores for FY17.
Whereas as per the approved ARR of BESCOM for FY17, the fixed cost to
be incurred in each of the activity in generation, transmission and
distribution is as follows:
Amount in Rs. Crores
Activity Total Fixed Cost
to be incurred
Generation 2547.69
Transmission including
SLDC charges
1496.39
Distribution network cost 1221.06
Total Fixed cost 5265.14
From the above analysis that, as against the total fixed expenditure of
Rs.5265.14 Crores, BESCOM is able to collect the fixed expenditure only
to an extent of Rs.1682.09 Crores, in the form of fixed charges, at the
existing rates. This accounts for recovery of only 31.95% Fixed Charges.
The remaining 68.05% is being recovered in the form of energy charges,
which is not an efficient methodology of recovery of fixed expenditure.
As per the new Tariff Policy issued by the Ministry of Power, Government
of India, dated 28th January, 2016, two-part Tariff featuring separate fixed
and variable charges shall be introduced for all consumers. In order to
ensure to ensure their financial viability it is imperative that the fixed
expenditure incurred by the ESCOMs are recovered in the form of fixed
charges. On study of the existing rate of fixed charges levied on the
cxliii
consumers and the amount collected thereon, it is observed that fixed
charges needs to be increased gradually to meet the above objective.
Hence the Commission hereby decides to provide for collection of
additional fixed charge of Rs.5/- per KW/HP per month from the
Domestic and LT Industrial consumers and RS.10/- per KW /HP/ KVA per
month from all the other categories of consumers. This would enable the
BESCOM to recover an additional amount towards the fixed charges to
an extent of Rs. 196.00 Crores and the projected total recovery of fixed
charges would be Rs.1878.09 Crores for FY17, which accounts for 35.67%
of the total fixed charges incurred.
2. Telescopic Tariff – Domestic sector:
BESCOM has proposed telescopic tariff in respect of domestic
consumers as follows:
1. Rs.2.70 per unit up to 30 units.
2. Rs.3.50 for all the units consumed in the month, if the consumption
exceeds 30 units and up to 50 units.
3. Rs.4.80 for all the units consumed in the month, if the consumption
exceeds 50 units and up to 200 units.
4. Rs.5.40 for all the units consumed in the month, if the consumption
exceeds 200 units and up to 300 units.
5. Rs.5.75 for all the units consumed in the month, if the consumption
exceeds 300 units and up to 400 Units.
6. Rs.5.95 for all the units consumed in the month, if the consumption
exceeds 400 units and up to 500 Units.
7. Energy charges of Rs.6.10 per unit for consumption exceeding 500
units in a month.
Commission’s Analysis and decisions:
The Commission in its preliminary observations had sought the details of
the financial implication of the proposal and directed BESCOM to seek
the opinion of other ESCOMs on the proposal. BESCOM has not furnished
the details of the financial implication and thereby has not justified the
cxliv
proposal. The other ESCOMs have not submitted any such proposal in
their applications. Further, the Commission is of the view that, any
change in approach on fixation of tariff for any particular category,
should not result in tariff shock to the consumers. Hence, the Commission
is unable to accept the proposal of BESCOM to introduce telescopic tariff
to the domestic consumers and decides to retain the existing tariff
structure.
3. Voltage class-wise Tariff for HT consumers:
BESCOM has proposed to introduce voltage class -wise tariff for HT
consumers by increasing the demand charges by to Rs.250 per KVA for
all HT categories and by Rs.10 per KW/HP for all LT categories and
reducing the energy charges correspondingly. It was stated that this will
enable BESCOM to increase the sales and revenue.
The Commission in its preliminary observations had sought the details of
the financial implication on the proposal. But BESCOM has not furnished
the required information and also has not justified the proposal. Hence,
in the absence of any scientific study to justify the proposal and also in
the absence of the required information, the Commission is unable
accept the proposal of BESCOM.
cxlv
4. Billing on KvAH basis to EHT/HT consumers:
BESCOM has proposed to introduce KvAH billing in place of the present
system of billing on KWH basis in respect of EHT and HT consumers with a
view to reduce the distribution losses encourage efficient consumption
of electricity by consumes, lower electricity bill of the consumers and
reduce BESCOM’s energy requirement.
In order to estimate the category-wise KvAh consumption and its impact
on revenue/ consumer tariff/ cross subsidy, the Commission, in its
preliminary observations, requested BESCOM to furnish the KvAh
consumption data of all its HT consumers for FY13 to FY15 and FY16 up to
November, 2015 and to rework the financial implication for FY17, on the
proposed billing on KvAh basis for all the HT consumers. This data was
sought to analyse the impact of proposal both on the revenues of the
licensee as well as the monthly bills of the consumers. However, the
required information has not been furnished by BESCOM. Hence, in the
absence of any scientific study and failure on the part of BESCOM to
furnish the required data along with the financial implications, the
Commission is unable to take any decision in the matter and hence
decides to continue the existing Kwh billing system, for all the HT
consumers.
5. Introduction of morning peak from 6 AM to 10 AM under ToD billing
BESCOM has proposed to introduce ToD billing for morning peak
between 6 AM to 10AM, to consumers currently covered under the ToD
system of billing. The Commission, while communicating its preliminary
observations, had sought the details of the revenue impact of the
existing ToD billing and also by inclusion of the proposed morning peak
period. BESCOM has not furnished the required data/ revenue impact as
required by the Commission.
cxlvi
Hence, in the absence of data and analysis of revenue impact to justify
the proposal, the Commission is unable accept the proposal of BESCOM.
6. Other proposals:
BESCOM has made the following other proposals:
a) Charge higher tariff to Kalyana Mantapas, where luxurious and
expensive marriages are taking place.
b) Extend concessional tariff to RO drinking water supply units.
c) Withdraw Solar Rebate.
d) Gateway charges for online payment to be borne by BESCOM for the
bill amounts up to Rs.10,000.
The Commission has examined the above proposals and notes that the
new proposals are not properly justified with financial implications and
hence, decides not to accept the proposals made.
6.5 Revenue at existing tariff and deficit for FY17:
The Commission in its preceding Chapters has decided to carry forward
the gap in revenue of Rs.11.21.Crores of FY15 to the ARR of FY17. The
gap in revenue for FY17 is proposed to be filled up by revision of Retail
Supply Tariff, as discussed in the following paragraphs of this Chapter.
Considering the approved ARR for FY17 and the revenue as per the
existing tariff, the gap in revenue for FY17 is as follows:
cxlvii
TABLE – 6.1
Revenue Deficit for FY17
Amount Rs. in Crores
Particulars Amount
Approved Net ARR for FY17 including gap of FY15 15764.97
Revenue at existing tariff 14497.35
Surplus / deficit (1267.62)
Additional Revenue to be realised by Revision of
Tariff
1267.62
Accordingly, in this Chapter, the Commission has proceeded to
determine the Retail Supply Tariff for FY17. The category-wise tariff as
existing, as proposed by BESCOM and as approved by the Commission is
as follows:
1. LT-1 Bhagya Jyothi:
The existing tariff and the tariff proposed by BESCOM are given below:
Sl.
No
Details Existing as per 2015
Tariff Order
Proposed by BESCOM
1 Energy charges
(including recovery
towards service main
charges)
559 Paise / Unit Subject
to a monthly minimum
of Rs.30 per installation
per month.
661 Paise / Unit Subject
to a monthly minimum
of Rs.30 per installation
per month.
Commission’s Views/ Decision
The Government of Karnataka has continued its policy of providing free
power to all BJ/KJ consumers, whose consumption is not more than 18
units per month. Based on the present average cost of supply, the tariff
payable by these BJ/KJ consumers is revised to Rs.5.96 per unit.
Further, the ESCOMs have to claim subsidy for only those consumers who
consume 18 units or less per month per installation. If the consumption
cxlviii
exceeds 18 units per month or any BJ/KJ installation is found to have
more than one out- let, it shall be billed as per the Tariff Schedule LT 2(a).
The Commission determines the tariff (CDT) in respect of BJ / KJ
installations as follows:
LT – 1 Approved Tariff for BJ / KJ installations
Commission determined Tariff Retail Supply Tariff
determined by the
Commission
596 paise per unit,
Subject to a monthly minimum of
Rs.30 per installation per month.
-Nil-
Fully subsidized by GoK
*Since GOK is meeting the full cost of supply to BJ / KJ, the Tariff payable by these
Consumers is shown as nil. However, if the GOK does not release the subsidy in
advance, a Tariff of Rs.5.96 per unit subject to a monthly minimum of Rs.30 per
installation per month shall be demanded and collected from these consumers.
Note: If the consumption exceeds 18 units per month or any BJ/KJ
installation is found to have more than one light point being used,
it shall be billed as per Tariff Schedule LT 2(a).
2. LT2 - Domestic Consumers:
LT2 (a) Domestic Consumers:
BESCOM’s Proposal:
The details of the existing and proposed tariff under this category are
given in the Table below:
cxlix
Proposed Tariff for LT-2 (a)
LT-2 a (i) Domestic Consumers Category
Applicable to areas coming under Bruhat Bangalore Mahanagara Palike
(BBMP), Municipal Corporations and all Urban Local Bodies
Details Existing as per 2015 Tariff
Order
Proposed by BESCOM
Fixed Charges
per Month
For the first KW Rs.25 For the first KW Rs.25
For every additional KW Rs.35 For every additional KW Rs.35
Energy
Charges
0-30 units
(life line
Consumption )
0 to 30 units:270 paise/unit 0 to 30 units: 372 paise/unit
Energy
Charges
exceeding 30
units per month
31 to 100 units:400 paise/unit 31 to 100 units: 502 paise
/ unit
101 to 200 units:540 paise
/unit
101 to 200 units:642 paise
/unit
Above 200 units:640 paise
/unit
Above 200 units:742 paise
/unit
LT-2(a) (ii) Domestic Consumers Category
Applicable to Areas under Village Panchayats
Details Existing as per 2015 Tariff Order
Proposed by BESCOM
Fixed charges per
Month
For the first KW Rs.15 For the first KW Rs.15
For every additional KW
Rs.25
For every additional
KW Rs.25
Energy Charges
0-30 units ( life line
Consumption )
0 to 30 units:260 paise
/unit
0 to 30 units:362 paise
/unit
Energy Charges
exceeding 30 Units
per month
31 to 100 units:370 paise
/ unit
31 to 100 units:472 paise
/ unit
101 to 200 units: 510 paise
/unit
101 to 200 units: 612 paise
/unit
Above 200 units: 590 paise
/unit
Above 200 units:692 paise
/unit
Commission’s decision
cl
The Commission decides to continue the two tier tariff structure in
respect of the domestic consumers as shown below:
(i) Areas coming under Bruhat Bangalore Mahanagara Palike (BBMP)
Area, Municipal Corporations and all Urban Local Bodies.
(ii) Areas under Village Panchayats.
The Commission approves the tariff for this category as follows:
Approved Tariff for LT 2 (a) (i) Domestic Consumers Category:
Applicable to Areas coming under Bruhat Bangalore Mahanagara
Palike (BBMP) Municipal Corporations and all Urban Local Bodies
Details Tariff approved by the
Commission
Fixed charges per Month For the first KW: Rs.30/-
For every additional KW Rs.40/-
Energy Charges up to 30 units per
month (0-30 units)-life line consumption.
Upto 30 units: 300 paise/unit
Energy Charges in case the
consumption exceeds 30 units per
month
31 to 100 units:440 paise/unit
101 to 200 units:590 paise/unit
Above 200 units: 690 paise/unit
Approved Tariff for LT-2(a) (ii) Domestic Consumers Category:
Applicable to Areas under Village Panchayats
Details Tariff approved by the Commission
Fixed Charges per Month For the first KW: Rs.20/-
For every additional KW Rs.30/-
Energy Charges up to 30
units per month (0-30 Units)-
Lifeline Consumption
Upto 30 units: 290 paise/unit
Energy Charges in case the
consumption exceeds 30
units per month
31 to 100 units: 410 paise/unit
101 to 200 units: 560 paise/unit
Above 200 units: 640 paise/unit
LT2 (b) Private and Professional Educational Institutions & Private Hospitals
and Nursing Homes:
BESCOM’s Proposal:
cli
The details of the existing and the proposed tariff by BESCOM under this
category are given in the Table below:
LT 2 (b) (i) Applicable to areas under BBMP, Municipal Corporations
Areas and all urban Local Bodies
Details Existing as per 2015 Tariff Order Proposed by BESCOM
Fixed
Charges per
Month
Rs.35 Per KW subject to a
minimum of Rs.65 per month
Rs.35 Per KW subject to a
minimum of Rs.65 per
month
Energy
Charges
For the first 200 units 600
paise per unit
For the first 200 units 702
paise per unit
For the balance units 720
paise per unit
For the balance units 822
paise per unit
LT 2 (b)(ii) Applicable to Areas under Village Panchayats
Details Existing as per 2015 Tariff
Order
Proposed by BESCOM
Fixed
Charges per
Month
Rs.25 per KW subject to a
minimum of Rs.50 per Month
Rs.25 per KW subject to a
minimum of Rs.50 per Month
Energy
Charges
For the first 200 units: 550
paise per unit
For the first 200 units:652
paise per unit
For the balance units: 670
paise per unit
For the balance units:772
paise per unit
Commission’s decision
As in the previous Tariff Order the Commission decides to continue the
two tier tariff structure as below:
(i) Areas coming under BBMP, Municipal Corporation and all urban local
bodies.
(ii) Areas under Village Panchayats.
Approved Tariff for LT 2 (b) (i) Private Professional and other private
Educational Institutions, Private Hospitals and Nursing Homes
Applicable to areas under BBMP, Municipal Corporations and all other
urban Local Bodies.
Details Tariff approved by the Commission
Fixed Charges per Month Rs.45 per KW subject to a minimum of Rs.75
clii
per Month
Energy Charges 0-200 units: 625 paise/unit
Above 200 units: 745 paise/unit
Approved Tariff for LT 2 (b) (ii) Private Professional and other private Educational
Institutions, Private Hospitals and Nursing Homes
Applicable in Areas under Village Panchayats
Details Tariff approved by the Commission
Fixed Charges per Month Rs.35 per KW subject to a minimum of Rs.60 per
Month
Energy Charges 0-200 units: 570 paise/unit
Above 200 units: 690 paise/unit
cliii
3. LT3- Commercial Lighting, Heating & Motive Power:
BESCOM’s Proposal:
The existing and proposed tariff is as follows:
LT- 3 (i) Commercial Lighting, Heating & Motive Power
Applicable in Areas coming under BBMP, Municipal Corporation
and urban local bodies
Details Existing as per 2015 Tariff
Order
Proposed by BESCOM
Fixed charges per
Month
Rs.40 per KW Rs.40 per KW
Energy Charges For the first 50 units:695
paise per unit
For the first 50 units:797 paise
per unit
For the balance units: 795
paise per unit
For the balance units: 897
paise per unit
Demand based tariff (optional) where sanctioned load is above 5 KW but
below 50 KW.
Details Existing as per 2015 Tariff Order Proposed by BESCOM
Fixed
charges
Rs.55 per KW Rs.55 per KW
Energy
Charges
For the first 50 units:695 paise
per unit
For the first 50 units: 797 paise
per unit
For the balance units:795 paise
per unit
For the balance units: 897
paise per unit
LT-3 (ii) Commercial Lighting, Heating & Motive
Applicable in areas under Village Panchayats
Details Existing as per 2015 Tariff
Order
Proposed by BESCOM
Fixed Charges per
Month
Rs.30 per KW Rs.30 per KW
Energy Charges For the first 50 units:645
paise per unit
For the first 50 units:747
paise per unit
For the balance units:745
paise per unit
For the balance units:847
paise per unit
cliv
Demand based tariff (optional) where sanctioned load is above 5 KW but
below 50 KW
Details Existing as per 2015 Tariff
Order
Proposed by BESCOM
Fixed Charges
per Month
Rs.45 per KW Rs.45 per KW
Energy Charges For the first 50 units:645
paise per unit
For the first 50 units:747
paise per unit
For the balance
units:745 paise per unit
For the balance units:847
paise per unit
Commission’s Views/ Decision
As in the previous Tariff Order, the Commission decides to continue to
two tier tariff structure as below:
(i) Areas coming under BBMP, Municipal Corporations and other
urban local bodies.
(ii) Areas under Village Panchayats.
Approved Tariff for LT- 3 (i) Commercial Lighting, Heating& Motive
Applicable to areas under BBMP, Municipal Corporations and other
Urban Local Bodies
Details Approved by the Commission
Fixed Charges per Month Rs.50 per KW
Energy Charges For the first 50 units: 715 paise/ unit
For the balance units: 815 paise/unit
Approved Tariff for Demand based tariff (Optional) where sanctioned
load is above 5 kW but below 50 kW
Details Approved by the Commission
Fixed Charges per
Month
Rs.65 per KW
Energy Charges For the first 50 units: 715 paise /unit
For the balance units: 815 paise/unit
Approved Tariff for LT-3 (ii) Commercial Lighting, Heating and Motive Applicable to areas under Village Panchayats
Details Approved by the Commission
Fixed charges per
Month
Rs.40 per KW
Energy Charges For the first 50 units: 665 paise per unit
clv
For the balance units: 765 paise per unit
Approved Tariff for Demand based tariff (Optional) where sanctioned
load is above 5 kW but below 50 kW
Details Approved by the Commission
Fixed Charges per
Month
Rs.55 per KW
Energy Charges For the first 50 units: 665 paise per unit
For the balance units: 765 paise per unit
4. LT4-Irrigation Pump Sets:
BESCOM’s Proposal:
The existing and proposed tariff for LT4 (a) is as follows:
LT-4 (a) Irrigation Pump Sets
Applicable to IP sets up to and inclusive of 10 HP
Details Existing as per 2015 Tariff
Order
Proposed by BESCOM
Fixed charges per
Month
Nil Nil
Energy charges CDT 238 paise per unit Free (In case GoK does not
release the subsidy in
advance, CDT of 340 paise
per unit will be demanded
and collected from
consumers)
clvi
Commission’s Decision
The Government of Karnataka has extended free supply of power to
farmers as per Government Order No.EN 55 PSR 2008 dated 04.09.2008.
As per this policy of GoK, the entire cost of supply to IP sets up to and
inclusive of 10 HP is being borne by the GoK through tariff subsidy. In view
of this, all the categories under the existing LT-4a tariff are covered under
free supply of power.
Considering the cross subsidy contribution from categories other than IP
Sets and BJ/KJ Categories, the Commission determines the tariff for IP
Sets under LT4(a) category as follows:
Approved CDT for IP Sets for FY17
Particulars BESCOM
Approved ARR in Rs. Crore 15764.97
Revenue from other than IP & BJ/KJ
installations in Rs. Crore 13808.27
Amount to be recovered from IP &
BJ/KJ installations in Rs. Crore 1956.70
Approved Sales to BJ/KJ installations in
MU 49.15
Revenue from BJ/KJ installations at
Average Cost of supply in Rs. crore 29.29
Amount to be recovered from IP Sets
category in Rs. crore 1927.41
Approved Sale to IP Sets in MU 6739.18
Commission Determined Tariff (CDT) for
IP set Category for FY17 in Rs/Unit 2.86
Accordingly, the Commission decides to approve tariff of Rs.2.86 per unit
as CDT for FY17 for IP Set category under LT4 (a). In case the GoK does
not release the subsidy in advance, a tariff of Rs.2.86 per unit shall be
demanded and collected from these consumers.
Approved by the Commission
clvii
LT-4 (a) Irrigation Pump Sets
Applicable to IP sets up to and inclusive of 10 HP
Details Approved by the Commission
Fixed charges per Month
Energy charges
Nil*
CDT (Commission Determined Tariff):
286 paise per unit
* In case the GoK does not release the subsidy in advance, a tariff of
Rs.2.86 per unit shall be demanded and collected from these
consumers.
PAYMENT OF SUBSIDY BY GOVERNMENT OF KARNATAKA FOR FY17:
Several consumers and stakeholders who participated in the Public
Hearing held by the Commission have expressed that the ESCOMs may
be showing part of their technical losses against IP set consumption by
inflating the number of live pump sets, in order to report technical losses
lower than the actual losses prevailing in the distribution system. Further,
they have also expressed that there are many defunct, non-working/idle
IP sets provided to both open wells and bore wells which have dried up
and the same have not been identified / deleted from the ledger
accounts by the ESCOMs and that the ESCOMs, however, are treating
these IP sets as live IP set installations and claiming subsidy from the
Government, which needs to be stopped immediately. They have
requested the Commission to direct the ESCOMs to take up enumeration
of IP sets in their jurisdiction to identify defunct/dried up wells and un-
authorized IP sets in the field and take necessary action to arrive at the
correct number of IP sets in their account on the basis of the
enumeration report. The Commission is also of the view that IP sets of
defunct /dried up wells should be deleted in the accounts of the
ESCOMs in order to reflect exact numbers of live IP sets and its usage for
claiming subsidy from the Government and more importantly to assess
the performance of the ESCOMs.
The Commission has approved in respect of all the ESCOMs, a total ARR
of Rs.31,917.59 Crores for the FY17, which includes estimated revenue of
clviii
Rs.8,571.08 Crores against supply of 19,505.96 MU of power to 25,64,999
number of IP sets (excluding HRECS). The Commission is of the view that
the actual number of IP set installations would be far less than 25,64,999
approved for the FY17, if proper enumeration is carried out to ascertain
the correct number of IP sets by the ESCOMs. Therefore, the ESCOMs
need to immediately take up enumeration of IP sets to arrive at the
exact number of IP sets in use. The ESCOMs should note that the
quantum of sales to IP sets approved in ARR for FY17 is subject to APR
and the Commission will not accept such sales without being
substantiated in the manner specified by it.
The Commission has been issuing directives to ESCOMs for conducting
Energy Audit at the Distribution Transformer Centre (DTC)/feeder level to
enable detection and prevention of commercial losses. In view of
substantial progress in implementation of feeder segregation under NJY
scheme, the ESCOMs were also directed to submit IP set consumption on
the basis of the meter readings of the 11 kV feeders at the substation
level duly deducting the energy losses in 11kV lines, distribution
transformers & LT lines, in order to compute the consumption of power by
IP sets accurately. In this regard, the Commission has noted that the
ESCOMs have complied partly with these directions and they have
initiated measures to achieve full compliance. The ESCOMs need to
ensure full compliance as this has direct impact on their revenues and
tariff payable by other categories of consumers.
For the forgoing reasons, the Commission directs the ESCOMs as follows:
1) The ESCOMs shall manage supply of power to the IP sets for the FY17,
so as to ensure that it is within the quantum of subsidy committed by
the GoK. They shall procure power which is proportional to such
supply. In case the ESCOMs opt to supply power to the IP sets in
excess of the quantum corresponding to the amount of subsidy the
GoK has assured to be released for FY17, the difference in the
amount of subsidy relating to such supply shall be claimed from the
clix
GoK. If the difference in subsidy is not paid by the GoK, the same has
to be collected from the IP set consumers.
2) The ESCOMs shall, immediately take up enumeration of IP sets, 11kV
feeder wise by capturing the GPS co-ordinates namely longitude,
latitude and altitude of each live IP set in their jurisdiction and
complete this process within six months from the date of this Order
and submit the list of 11 kV feeder-wise IP sets’ census with GPS co-
ordinates to the Commission, on or before 15th October, 2016. The
Commission would accordingly revise the number of IP sets and its
consumption for the FY17.
3) The ESCOMs shall compute the specific consumption and total sale of
energy to IP sets considering the month-wise energy input to 11 kV
segregated agricultural feeders at the substation duly deducting the
energy losses prevailing in 11 kV lines, DTCs & LT Lines and submit to
the Commission, the monthly DTC wise/ feeder-wise energy audit
reports regularly in the formats prescribed by the Commission, before
15th of succeeding month.
Pending compliance of the directives contained in (2) and (3) above,
the Commission hereby advises the Government to release only 90% of
the subsidy allocated for FY17. The Commission will advise the
Government, in the last quarter of the financial year to release the
balance 10% of subsidy for the year, on satisfactory compliance of the
above directives.
LT4 (b) Irrigation Pump Sets above 10 HP:
BESCOM’s Proposal
The Existing and proposed tariff for LT-4(b) is as follows:
clx
LT-4 (b) Irrigation Pump Sets:
Applicable to IP Sets above 10 HP
Details Existing as per 2015 Tariff
Order
Proposed by BESCOM
Fixed charges per
Month
Rs.30 per HP Rs.30 per HP
Energy charges for
the entire
consumption
240 paise per unit 342 paise per unit
The existing and proposed tariff for LT4(c) is as follows:
LT-4 (c) (i) Irrigation Pump Sets:
Applicable to Private Horticultural Nurseries, Coffee, Tea & Rubber
plantations up to & inclusive of 10 HP
Details Existing as per 2015 Tariff
Order
Proposed by BESCOM
Fixed charges per
Month
Rs.20 per HP Rs.20 per HP
Energy charges for
the entire
consumption
240 paise per unit 342 paise per unit
LT-4 (c) (ii) Irrigation Pump Sets:
Applicable to Private Horticultural Nurseries, Coffee, Tea & Rubber
plantations above 10 HP
Details Existing as per 2015 Tariff
Order
Proposed by BESCOM
Fixed charges per
Month
Rs.30 per HP Rs.30 per HP
Energy charges for
the entire
consumption
240 paise per unit 342 paise per unit
clxi
Approved Tariff:
The Commission decides to revise the tariff in respect of these categories
as shown below:
LT-4 (b) Irrigation Pump Sets:
Applicable to IP Sets above 10 HP
Fixed charges per Month Rs.40 per HP
Energy charges for the entire
consumption
280 paise/unit
LT4(c) (i) Irrigation Pump Sets:
Applicable to Horticultural Nurseries,
Coffee, Tea & Rubber plantations up to & inclusive of 10 HP
Fixed charges per Month Rs.30 per HP
Energy charges 280 paise / unit
LT4 (c)(ii) Irrigation Pump Sets
Applicable to Horticultural Nurseries, Coffee, Tea& Rubber plantations
above 10 HP
Fixed charges per Month Rs.40 per HP
Energy charges 280 paise/unit
5. LT5 Installations-LT Industries:
BESCOM’s Proposal:
The existing and proposed tariffs are given below:
LT-5 (a) LT Industries:
Applicable to Bruhat Bangalore Mahanagara Palike (BBMP) and
Other Municipal Corporation areas
i) Fixed charges
Details Existing as per 2015 Tariff Order Proposed by BESCOM
Fixed
charges
per Month
i) Rs. 30 per HP for 5 HP &
below
ii) Rs. 30 per HP for above 5 HP
& below 40 HP
iii) Rs. 40 per HP for 40 HP &
above but below 67 HP
iv)Rs. 110 per HP for 67 HP &
above
i) Rs. 30 per HP for 5 HP & below
ii) Rs. 30 per HP for above 5 HP &
below 40 HP
iii) Rs. 40 per HP for 40 HP &
above but below 67 HP
iv)Rs. 110 per HP for 67 HP &
above
Demand based Tariff (Optional)
Details Description Existing Tariff as per
2015 Tariff Order
Proposed by
BESCOM
Fixed
Charg
Above 5 HP and less
than 40 HP
Rs.50 per KW of billing
demand
Rs.50 per KW of
billing demand
clxii
es per
Month
40 HP and above but
less than 67 HP
Rs.70 per KW of billing
demand
Rs.70 per KW of
billing demand
67 HP and above Rs.160 per KW of
billing demand
Rs.160 per KW of
billing demand
ii) Energy Charges
Details Existing as per 2015
Tariff Order
Proposed by BESCOM
For the first 500 units 490 paise per unit 592 paise/ unit
For the balance
units
600 paise per unit 702 paise /unit
LT-5 (b) LT Industries:
Applicable to all areas other than those covered under LT-5(a)
i) Fixed charges
Demand based Tariff (optional)
Details Description Existing Tariff as per
2015 Tariff Order
Proposed by
BESCOM
Fixed Charges per Month
Above 5 HP and
less than 40 HP
Rs.45 per KW of
billing demand
Rs.45 per KW of
billing demand
40 HP and above
but less than 67 HP
Rs.60 per KW of
billing demand
Rs.60 per KW of
billing demand
67 HP and above Rs.150 per KW of
billing demand
Rs.150 per KW of
billing demand
ii) Energy Charges
Details Existing as per 2015
Tariff Order
Proposed by BESCOM
For the first 500 units 470 paise per unit 572 paise/ unit
For the next 500
units
550 paise per unit 652 paise/ unit
For the balance
units
580 paise per unit 682 paise/ unit
Details Existing as per 2015 Tariff Order Proposed by BESCOM Fixed Charges per Month
i)Rs.25 per HP for 5 HP &
below
ii) Rs.30 per HP for above 5 HP
& below 40 HP
iii) Rs.35 per HP for 40 HP &
above but below 67 HP
iv)Rs.100 per HP for 67 HP &
above
i) Rs.25 per HP for 5 HP
& below
ii) Rs.30 per HP for
above 5 HP &
below 40 HP
iii) Rs.35 per HP for 40 HP
& above but below
67 HP
iv)Rs.100 per HP for 67
HP & above
clxiii
Existing ToD Tariff for LT5 (a) & (b): At the option of the consumers
ToD Tariff
Time of Day Increase (+ )/ reduction (-) in energy
charges over the normal tariff applicable
22.00 Hrs to 06.00 Hrs (-) 125 paise per unit
06.00 Hrs to 18.00 hrs 0
18.00 Hrs to 22.00 Hrs (+) 100 paise per unit
Proposed ToD Tariff for LT5 (a) & (b): At the option of the consumers
ToD Tariff
Time of Day Increase (+ )/ reduction (-) in energy
charges over the normal tariff applicable
22.00 Hrs to 06.00 Hrs (-) 125 paise per unit
06.00 Hrs to 18.00 hrs 0
18.00 Hrs to 22.00 Hrs (+) 100 paise per unit
Commission’s Decision:
Time of the Day Tariff:
The decision of the Commission in its earlier Tariff Orders, providing for
mandatory Time of Day Tariff for HT2(a), HT2(b) and HT2(c) consumers
with a contract demand of 500 KVA and above is continued. The
optional ToD will continue as existing for HT2(a), HT2(b) and HT2(c)
consumers with contract demand of less than 500 KVA. Further, for LT5
and HT1 consumers, the optional ToD is continued as existing.
The Commission has decided to continue with two tier tariff structure
introduced in the previous Tariff Orders, which are as follows:
i) LT5 (a): For areas falling under BBMP and Municipal Corporations
ii) LT5 (b): For areas other than those covered under LT5 (a) above.
Approved Tariff:
The Commission approves the tariff under LT 5 (a) and LT 5 (b) as given
below:
Approved Tariff for LT 5 (a):
Applicable to areas under BBMP and other Municipal Corporations
clxiv
i) Fixed charges
Details Approved by the Commission
Fixed
Charges per
Month
i) Rs.35 per HP for 5 HP & below
ii) Rs.35 per HP for above 5 HP & below 40 HP
iii) Rs.45 per HP for 40 HP & above but below 67 HP
iv) Rs.110 per HP for 67 HP & above
Demand based Tariff (optional)
Fixed
Charges per
Month
Above 5 HP and less than 40
HP
Rs.55 per KW of billing
demand
40 HP and above but less
than 67 HP
Rs.75 per KW of billing
demand
67 HP and above Rs.160 per KW of billing
demand
ii) Energy Charges
Details Approved by the Commission
For the first 500 units 510 paise/unit
For the balance units 630 paise/ unit
Approved Tariff for LT 5 (b):
Applicable to all areas other than those covered under LT-5(a)
i) Fixed charges
Details Approved Tariff
Fixed
Charges
per Month
i) Rs.30 per HP for 5 HP & below
ii) Rs.35 per HP for above 5 HP & below 40 HP
iii) Rs.40 per HP for 40 HP & above but below 67 HP
iv)Rs.100 per HP for 67 HP & above
ii) Demand based Tariff (optional)
Details Description Approved Tariff
Fixed Charges per
Month
Above 5 HP and
less than 40 HP
Rs.50 per KW of billing
demand
40 HP and above
but less than 67 HP
Rs.65 per KW of billing
demand
67 HP and above Rs.150 per KW of billing
demand
iii) Energy Charges
Details Approved tariff
For the first 500 units 485 paise/ unit
clxv
For the next 500 units 570 paise/ unit
For the balance units 600 paise/unit
Approved ToD Tariff for LT5 (a) & (b): At the option of the consumers
ToD Tariff
Time of Day Increase (+ )/ reduction (-) in energy
charges over the normal tariff applicable
22.00 Hrs to 06.00 Hrs (-)125 paise per unit
06.00 Hrs to 18.00 hrs 0
18.00 Hrs to 22.00 Hrs (+)100 paise per unit
clxvi
6. LT6 Water Supply Installations and Street Lights:
BESCOM’s Proposal:
The existing and the proposed tariffs are given below:
LT-6(a) : Water Supply
Details Existing as per 2015 Tariff
Order
Proposed by BESCOM
Fixed charges per
Month
Rs.35/HP/month Rs.35/HP/month
Energy charges 340 paise/unit 442 paise/unit
LT-6 (b) : Public Lighting
Details Existing as per 2015 Tariff
Order
Proposed by BESCOM
Fixed charges
per Month
Rs.50/KW/month Rs.50/KW/month
Energy charges 500 paise/unit 602 paise/unit
The Commission approves the tariff for these categories are as follows:
Tariff Approved by the Commission for LT-6 (a): Water supply
Details Approved Tariff
Fixed Charges per
Month
Rs.45 /HP/month
Energy charges 390 paise/unit
Tariff Approved by the Commission for LT-6 (b): Public Lighting
Details Approved Tariff
Fixed charges per
Month
Rs.60 /KW/month
Energy charges 550 paise/unit
Energy charges
for LED / Induction
Lighting
450 paise/unit
7. LT 7- Temporary Supply & Advertising Hoardings:
BESCOM’s Proposal:
The existing rate and the rate proposed are given below:
clxvii
Temporary Supply
a) Less than 67
HP:
Energy charge at 900
paise per unit subject
to a weekly minimum
of Rs.160 per KW of
the sanctioned load.
Energy charge at 1002 paise
per unit subject to a weekly
minimum of Rs.160 per KW of
the sanctioned load.
TARIFF SCHEDULE LT-7(b)
Applicable to Hoardings & Advertisement boards
a) Less than 67
HP:
Energy charge at 900
paise per unit subject
to a weekly minimum
of Rs.40 per KW/
month of the
sanctioned load.
Energy charge at 1002 paise
per unit subject to a weekly
minimum of Rs.40 per KW/
month of the sanctioned load.
Commission’s decision
As decided in the previous Tariff Order, the tariff specified for installations
with sanctioned load / contract demand above 67 HP shall be covered
under the HT temporary tariff category under HT5.
With this, the Commission decides to approve the tariff for LT-7 category
as follows:
Details Existing as per 2015
Tariff Order
Proposed by BESCOM
Details Existing as per 2015
Tariff Order
Proposed by BESCOM
clxviii
TARIFF SCHEDULE LT-7(a)
Applicable to Temporary Power Supply for all purposes.
LT 7(a) Details Approved Tariff
Temporary Power
Supply for all
purposes.
Less than 67 HP:
Energy charges at 950 paise / unit
subject to a weekly minimum of Rs.170
per KW of the sanctioned load.
TARIFF SCHEDULE LT-7(b)
Applicable to Hoardings & Advertisement boards, Bus Shelters with
Advertising Boards, Private Advertising Posts / Sign boards in the interest
of public such as Police Canopy Direction boards, and other sign boards
sponsored by Private Advertising Agencies / firms on permanent
connection basis.
LT 7(b) Details Approved Tariff
Power supply on
permanent
connection basis
Less than 67 HP:
Fixed Charges at Rs.50 per KW / month
& Energy charges at 950 paise / unit
H.T. Categories:
Time of Day Tariff (ToD)
The Commission decides to continue the mandatory Time of Day Tariff
for HT2 (a), HT (b) and HT2(c) consumers with a contract demand of 500
KVA and above. Further, the optional ToD will continue as existing for
HT2 (a), HT (b) and HT2 (b) consumers with contract demand of less than
500 KVA. The details of ToD tariff are indicated under the respective
tariff category.
8. HT1- Water Supply & Sewerage
BESCOM’s Proposal:
The existing and proposed tariff are as given below:
The Existing and the proposed tariff – HT-1 Water Supply and Sewerage
Installations
Sl. Details Existing tariff as per 2015 Proposed Tariffs
clxix
No. Tariff Order
1 Demand
charges
Rs.180 / kVA of billing
demand / month
Rs.180 / kVA for billing
demand / month
2 Energy charges 410 paise per unit 512 paise per unit
Existing ToD tariff to HT-1 tariff to Water Supply & Sewerage installations at the option of the consumer
22.00 Hrs to 06.00 Hrs next day (-) 125 Paise per unit
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs (+) 100 Paise per unit
Proposed ToD Tariff to HT-1
Time of day Increase (+) / reduction (-) in the energy
charges over the normal tariff applicable
22.00 Hrs to 06.00 Hrs next day (- ) 125 Paise per unit
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs (+) 100 Paise per unit
Commission’s decision:
The Commission approves the tariff for HT 1 Water Supply & Sewerage category as below:
Details Approved Tariff for HT 1
Demand
charges
Rs.190 / kVA of billing demand / month
Energy charges 450 paise/ unit
Time of day Increase (+) / reduction (-) in the energy
charges over the normal tariff applicable
clxx
Approved ToD tariff to HT-1 tariff to Water Supply & Sewerage
installations at the option of the consumer
22.00 Hrs to 06.00 Hrs next day (-)125 paise per unit
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs (+)100 paise per unit
9. HT2 (a) – HT Industries & HT 2(b) – HT Commercial
BESCOM’s Proposal:
The existing and proposed tariff are as given below:
Existing & proposed tariff – HT – 2 (a) (i) – HT Industries
Applicable to Bruhat Bangalore Mahanagara Palike (BBMP) & Municipal
Corporation area
Details Existing tariff as per Tariff
Order 2015
Proposed by BESCOM
Demand charges Rs. 180 / kVA of billing
demand / month
Rs. 180 / kVA of billing
demand / month
Energy charges
(i) For the first one
lakh units
(ii) For the
balance units
590 paise per unit
630 paise per unit
692 paise per unit
732 paise per unit
Existing & proposed tariff – HT – 2 (a) (ii) - HT Industries
Applicable to areas other than those covered under HT-2(a)(i)
Details Existing tariff as per Tariff
Order 2015
Proposed by BESCOM
Demand charges Rs. 170 / kVA of billing
demand / month
Rs. 170 / kVA of billing
demand / month
Energy charges
(iii) For the first one
lakh units
(iv) For the
balance units
585 paise per unit
615 paise per unit
687 paise per unit
717 paise per unit
Railway traction and Effluent Plants {both Under HT2 (a)(i) & HT2a(ii)}
Details Existing tariff as per Tariff
order 2015
Proposed by BESCOM
Time of day Increase (+) / reduction (-) in the energy
charges over the normal tariff applicable
clxxi
Demand charges Rs. 180 / kVA at billing
demand / month
Rs. 180 / kVA of billing
demand / month
Energy charges 555 paise per unit for all the
units
657 paise per unit for all
the units
Existing ToD Tariff for HT-2(a)
Time of day Increase (+) / reduction (-) in the energy
charges over the normal tariff applicable
22.00 Hrs to 06.00 Hrs next day (- )125 Paise per unit
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs (+) 100 Paise per unit
Proposed ToD Tariff for HT-2(a)
Time of day Increase (+) / reduction (-) in the energy
charges over the normal tariff applicable
22.00 Hrs to 06.00 Hrs next day (- ) 125 Paise per unit
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs (+) 100 Paise per unit
Tariff for Metro Rail Corporation
Details Existing tariff as per Tariff
Order 2015
Proposed by BESCOM
Demand charges Rs. 180 / kVA of billing
demand / month
Rs. 180 / kVA of billing
demand / month
Energy charges 535 paise per unit for all the
units
637 paise per unit for all
the units
clxxii
Commission’s Decision:
Approved Tariff for HT – 2 (a) (i) :
The Commission approves the tariff for HT 2(a) category as below:
i) Approved Tariff for HT2(a)(i)
Applicable to areas under BBMP and Municipal Corporations
Details Tariff approved by the Commission
Demand charges Rs.190 / kVA of billing demand / month
Energy charges
For the first one lakh units 625 paise/ unit
For the balance units 675 paise/ unit
ii) Approved Tariff for HT – 2 (a) (ii)
Applicable to areas other than those covered under HT-2(a) (i)
Details Approved Tariff
Demand charges Rs.180 / kVA of billing demand / month
Energy charges
For the first one lakh units 620 paise/ unit
For the balance units 660 paise/ unit
iii) Railway Traction & Effluent Treatment Plants applicable to both HT2a(i) &
HT2 a(ii)
Details Tariff approved by the Commission
Demand charges Rs. 190 / kVA of billing demand / month
Energy charges 590 paise / unit for all the units
iv) Approved Tariff for Metro Rail Corporation
Details Tariff Approved by the Commission
Demand Charges Rs.190 per KVA of the billing
demand
Energy Charges for entire
consumption
570 paise per unit
clxxiii
10. HT-2 (b) HT Commercial
BESCOM’s Proposal:
The existing and proposed tariff are as given below:
Existing and proposed tariff HT – 2 (b) (i) HT Commercial
Applicable to BBMP & Municipal Corporation Area
Details Existing tariff as per Tariff
Order 2015
Proposed by BESCOM
Demand charges Rs.200 / kVA of billing
demand / month
Rs.200 / kVA of billing
demand / month
Energy charges
(i) For the first two
lakh units
755 paise per unit
857 paise per unit
(ii)For the balance
units
785 paise per unit 887 paise per unit
Existing and proposed tariff HT – 2 (b) (ii) HT Commercial
Applicable to areas other than those covered under HT-2(b) (i)
Details Existing tariff as per Tariff
Order 2015
Proposed by BESCOM
Demand charges Rs.190 / kVA of billing
demand / month
Rs.190 / kVA of billing
demand / month
Energy charges
(i) For the first two
lakh units
735 paise per unit
837 paise per unit
(ii)For the balance
units
765 paise per unit 867 paise per unit
Commission’s Decision
The Commission approves the following tariff for HT 2 (b) consumers:
Approved tariff for HT – 2 (b) (i)
Applicable to areas under BBMP & Municipal Corporations
Details Tariff approved by the Commission
Demand charges Rs.210 / kVA of billing demand / month
Energy charges
(i) For the first two lakh units 805 paise per unit
(ii) For the balance units 835 paise per unit
Approved tariff for HT – 2 (b) (ii) - HT Commercial
Applicable to all areas other than those covered under HT-2(b) (i) above
clxxiv
Details Tariff approved by the Commission
Demand charges Rs.200 / kVA of billing demand / month
Energy charges
(i) For the first two lakh units 785 paise per unit
(ii) For the balance units 815 paise per unit
Note: The above tariff under HT2 (b) is not applicable for construction of new
industries. Such power supply shall be availed under the temporary
category HT5.
11. HT – 2 (c) – Applicable to Hospitals and Educational Institutions:
The existing and proposed tariff are given below:
Existing and proposed tariff for HT – 2 (c) (i)
Applicable to Government Hospitals & Hospitals run by Charitable Institutions & ESI
Hospitals
and
Universities, Educational Institutions belonging to Government, Local Bodies and Aided
Institutions and Hostels of all Educational Institutions
Details Existing tariff as per Tariff
Order 2015
Proposed by BESCOM
Demand charges Rs.170 / kVA of billing
demand / month
Rs.170 / kVA of billing demand /
month
Energy charges
(i) For the first one
lakh units
560 paise per unit 662 paise per unit
(ii) For the balance
units
610 paise per unit 712 paise per unit
clxxv
Existing and proposed tariff for HT – 2 (c) (ii) –
Applicable to Hospitals and Educational Institutions other than those covered under
HT2(c) (i)
Details Existing tariff as per
Tariff Order 2015
Proposed by
BESCOM
Demand charges Rs. 170 / kVA of
billing demand /
month
Rs. 170 / kVA of
billing demand /
month
Energy charges
(i) For the first one lakh units 660 paise per unit 762 paise per unit
(ii) For the balance units 710 paise per unit 812 paise per unit
Commission’s Decision:
The Commission approves the following tariff for HT2(c) consumers.
Approved tariff for HT – 2 (c) (i)
Applicable to Government Hospitals, Hospitals run by Charitable Institutions, ESI
Hospitals,
Universities and Educational Institutions belonging to Government & Local Bodies, Aided
Educational Institutions and Hostels of all Educational Institutions
Details Approved Tariff
Demand charges Rs.180/ kVA of billing demand / month
Energy charges
(i) For the first one lakh units 600 paise per unit
(ii) For the balance units 650 paise per unit
Approved tariff for HT – 2 (c) (ii)
Applicable to Hospitals/Educational Institutions other than those covered under HT2(c)
(i)
Details Approved Tariff
Demand charges Rs.180 / kVA of billing demand / month
Energy charges
(i) For the first one lakh units 700 paise per unit
(ii) For the balance units 750 paise per unit
Approved ToD Tariff to HT-2(a), HT-2(b) and HT2(c)
Time of day Increase (+) / reduction (-) in the energy
charges over the normal tariff applicable
clxxvi
22.00 Hrs to 06.00 Hrs next day (- )125 Paise per unit
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs (+) 100 Paise per unit
12. HT-3(a) Lift Irrigation Schemes under Government Departments /
Government owned Corporations/ Lift Irrigation Schemes under Pvt
./Societies:
The existing and proposed tariff are given below:
Existing and proposed tariff for HT – 3 (a) –Lift Irrigation Schemes
HT 3(a) (i) Applicable to LI Schemes under Government Departments /
Government owned Corporations
Details Existing charges as per Tariff
Order 2015
Proposed charges by
BESCOM
Energy
charges/
Minimum
charges
170 paise / unit
Subject to an annual minimum
of Rs.1000 per HP / annum
272 paise / unit
Subject to an annual
minimum of Rs. 1000
per HP / annum
HT 3(a) (ii) Applicable to Pvt. LI Schemes and Lift Irrigation Societies:
Fed through Express / Urban feeders
Details Existing Tariff as per Tariff
Order 2015
Proposed by BESCOM
Fixed charges Rs. 30 / HP / Month of
sanctioned load
Rs. 30 / HP / Month of
sanctioned load
Energy charges 170 paise / unit 272 paise / unit
HT 3(a) (iii) Applicable to Pvt. LI Schemes and Lift Irrigation Societies:
other than those covered under HT-3 (a)(ii)
Details Existing Tariff as per Tariff
Order 2015
Proposed by BESCOM
Fixed charges Rs.10 / HP / Month of
sanctioned load
Rs.10 / HP / Month of
sanctioned load
Energy charges 170 paise / unit 272 paise / unit
Commission’s Decision:
The Commission approves the following tariff for HT3(a) consumers:
Approved tariff for HT 3 (a) (i)
Applicable to LI schemes under Govt. Dept. / Govt. owned Corporations
Energy charges /
Minimum charges
200 paise/ unit
subject to an annual minimum of Rs. 1120
per HP / annum
clxxvii
Approved tariff for HT 3 (a) (ii)
Applicable to Private LI Schemes and Lift Irrigation Societies fed through
express / urban feeders
Fixed charges Rs.40 / HP / Month of sanctioned load
Energy charges 200 paise / unit
Approved tariff for HT 3 (a) (iii)
Applicable to Private LI Schemes and Lift Irrigation Societies other
than those covered under HT 3 (a) (ii)
Fixed charges Rs.20 / HP / Month of sanctioned load
Energy charges 200 paise / unit
13. HT3 (b) Irrigation & Agricultural Farms, Government Horticulture farms,
Private Horticulture Nurseries, Coffee, Tea, Coconut & Arecanut
Plantations:
BESCOM’s Proposal:
The existing and the proposed tariff are given below:
HT3 (b)- Irrigation & Agricultural Farms, Government Horticulture farms,
Private Horticulture Nurseries, Coffee, Tea, Coconut & Arecanut
Plantations:
Details Existing Tariff Order 2015 Proposed tariff by BESCOM
Energy charges /
minimum
charges
370 paise / unit
subject to an annual
minimum of Rs.1000 per HP
of sanctioned load
472 paise / unit
subject to an annual
minimum of Rs.1000 per HP
of sanctioned load
Commission’s Decision
The Commission approves the tariff for this category as indicated below:
Approved Tariff
HT3 (b)- Irrigation & Agricultural Farms, Government Horticulture farms,
Private Horticulture Nurseries, Coffee, Tea, Rubber, Coconut & Arecanut
Plantations:
Details Approved Tariff
Energy charges /
minimum charges
400 paise / unit
subject to an annual minimum
of Rs.1120 per HP of sanctioned
clxxviii
load
14. HT4- Residential Apartments/ Colonies:
BESCOM’s Proposal:
The existing and the proposed tariff for this category are given below:
Existing and proposed tariff for HT – 4 - Residential Apartments/ Colonies HT – 4 Applicable to all areas.
Details Existing Tariff Order 2015 Proposed tariff by BESCOM
Demand charges Rs.100 / kVA of billing
demand
Rs.100 / kVA of billing
demand
Energy charges 550 paise per unit 652 paise/ unit
Commission’s Decision
The Commission approves the tariff for this category as indicated below:
Approved tariff
HT – 4 Residential Apartments/ Colonies Applicable to all areas
Demand charges Rs.110 / kVA of billing demand
Energy charges 585 paise/ unit
15. TARIFF SCHEDULE HT-5
BESCOM’s Proposal:
The existing and the proposed tariffs are given below:
HT – 5 – Temporary supply
67 HP and above: Existing Proposed
Fixed charges /
Demand Charges
Rs.210/HP/month for the
entire sanction load /
contract demand
Rs.210/HP/month for the
entire sanction load /
contract demand
Energy Charge 900 paise / unit (weekly
minimum of Rs.160/- per
KW is not applicable)
1002 paise / unit (weekly
minimum of Rs.160/- per
KW is not applicable)
Commission’s Views/Decisions:
TARIFF SCHEDULE HT-5
(i) As approved in the Commission’s Tariff Order dated 6th May, 2013,
this Tariff is applicable to 67 HP and above hoardings and
clxxix
advertisement boards and construction power for industries
excluding those category of consumers covered under HT2 (b)
Tariff schedule availing power supply for construction power for
irrigation and power projects and also applicable to power supply
availed on temporary basis with the contract demand of 67 HP
and above of all categories.
Approved Tariff for HT – 5 – Temporary supply
67 HP and above: Approved Tariff
Fixed Charges /
Demand Charges
Rs.220 /HP/month for the entire sanction load /
contract demand
Energy Charges 950 paise / unit
(ii) The Commission in its Order dated 21st January, 2016 in OP
No.43/2015 has decided to allow HT temporary power supply to
Bangalore International Exhibition Centre on single part tariff of
Rs.10.00 per unit subject to a weekly minimum of Rs.200 per HP.
Now, in the present Tariff Order, the Commission decides to
continue the same under the new tariff schedule namely, HT-5 (a)
as detailed below:
TARIFF SCHEDULE HT-5 (a)
Applicable to power supply availed on temporary basis with the
contract demand of 67 HP and above by Bangalore International
Exhibition Centre.
Approved Tariff for HT-5(a) – Temporary supply
67 HP and above: Approved Tariff
Fixed Charges /
Demand Charges
Not Applicable
Energy Charges 1050 paise / unit
The Approved Tariff schedule for FY17 is enclosed in Annex – IV of this
Order.
6.6 Other Issues:
clxxx
6.6.1 Tariff for Green Power:
In order to encourage generation and use of green power in the State,
the Commission decides to continue the existing Green Tariff of 50 paise
per unit as the additional tariff over and above the normal tariff to be
paid by HT-consumers, who opt for supply of green power from out of
the renewable energy procured by distribution utilities over and above
their Renewable Purchase Obligation (RPO).
6.6.2 Determination of wheeling charges for FY17:
BESCOM in its tariff filing has proposed the wheeling charges
depending upon the point of injection and point of drawal, as
indicated below:
Injection Point HT LT
Drawal Point
HT 15.63 [3.79%] 52.12 [9.54%]
LT 52.12 [9.54%] 36.48 [5.75%]
Note: Figures in brackets are applicable loss.
BESCOM has stated that the above wheeling charges be made
applicable to all the Open Access/Wheeling transactions for using their
network, except for energy wheeled from NCE sources to the consumers
in the State.
Further, BESCOM in its tariff filing had requested the Commission not to
allow banking during summer months as the State is facing severe crisis
during summer months and the licensee is unable to mitigate the peak
demand. Under the above circumstances BESCOM has requested that
banking facility must not be extended for more than a month. The
Commission in its preliminary observations had directed BESCOM to
furnish necessary data in support of its proposal.
clxxxi
BESCOM in their replies has stated that the issue was discussed in the
meeting held with Chairman, BESCOM, wherein it was informed that
drawing energy banked in other seasons during summer months will
burden BESCOM network to supply power to its own consumers and
therefore it has placed the above point before the Commission.
The Commission notes that BESCOM’s request to do away with banking
during summer months is not supported by any data analysis showing
financial impact or technical constraints. As such the Commission is
unable to consider the request of BESCOM in the matter.
The approach of the Commission regarding wheeling & banking charges
is discussed in the following paragraphs:
The Commission has considered the approved ARR pertaining to
distribution wires business and has proceeded to determine the wheeling
charges as detailed below:
6.6.3 Wheeling within BESCOM Area:
The allocation of the distribution network costs to HT and LT networks for
determining wheeling charges is done in the ratio of 30:70, as was being
done earlier. Based on the approved ARR for distribution business, the
wheeling charges to each voltage level is worked out as under:
TABLE – 6.2
Wheeling Charges
Distribution ARR-Rs. Crs 1221.06
Sales-MU 26472.74
Wheeling charges- paise/unit 46.13
Paise/unit
HT-network 13.84
LT-network 32.29
In addition to the above, the following technical losses are applicable to
all open access/wheeling transactions:
Loss allocation % loss
HT 3.68
LT 8.24 Note: Total loss is allocated to HT, LT & Commercial loss based on energy flow
diagram furnished by BESCOM.
clxxxii
The actual wheeling charges payable (after rounding off) will depend
upon the point of injection and point of drawal as under:
paise/unit
Injection point
Drawal point
HT LT
HT 14[3.68%] 46 [11.92 %]
LT 46 [11.92%] 32 [8.24 %] Note: Figures in brackets are applicable loss
The wheeling charges as determined above are applicable to all the
open access or wheeling transactions for using the BESCOM network,
except for energy transmitted or wheeled from Renewable sources to
the consumers in the State.
6.6.4 WHEELING OF ENERGY USING TRANSMISSION NETWORK OR NETWORK OF
MORE THAN ONE LICENSEE
In case the wheeling of energy [other than RE sources wheeling to
consumers in the State] involves usage of Transmission network or
network of more than one licensee, the charges shall be as indicated
below:
i. If only transmission network is used, transmission charges
determined by the Commission shall be payable to the
Transmission Licensee.
ii. If the Transmission network and the ESCOMs’ network are used,
Transmission Charges shall be payable to the Transmission
Licensee. Wheeling Charges of the ESCOM where the power is
drawn shall be shared equally among the ESCOMs whose
networks are used.
Illustration:
If a transaction involves transmission network & BESCOM’s network and
100 units is injected, then at the drawal point the consumer is entitled for
clxxxiii
85.03 units, after accounting for Transmission loss of 3.47% and BESCOM’s
technical loss of 11.92%.
The Transmission charge in cash as determined in the Transmission Tariff
order shall be payable to KPTCL and Wheeling charges of 46 paise per
unit shall be payable to BESCOM. In case more than one ESCOM is
involved the above 46 paise shall be shared by all the ESCOMs involved.
iii. If ESCOMs’ network only is used, the Wheeling Charges of the
ESCOM where the power is drawn is payable and shall be shared
equally among the ESCOMs whose networks are used.
Illustration:
If a transaction involves injection to MESCOM’s network & drawal at
BESCOM’s network, and 100 units is injected, then at the drawal point
the consumer is entitled for 88.08 units, after accounting BESCOM’s
technical loss of 11.92%.
The Wheeling charges of 46 paise per unit applicable to BESCOM shall
be equally shared between MESCOM & BESCOM.
6.6.5 CHARGES FOR WHEELING OF ENERGY BY RE SOURCES (NON-REC ROUTE )
TO CONSUMERS IN THE STATE
The separate orders issued by the Commission from time to time in the
matter of wheeling and banking charges for RE sources (non-rec route )
wheeling energy to consumers in the State shall be applicable.
6.6.6 CHARGES FOR WHEELING ENERGY BY RE SOURCS WHEELING ENERGY
FROM THE STATE TO A CONSUMER/OTHERS OUTSIDE THE STATE AND FOR
THOSE OPTING FOR RENEWABLE ENERGY CERTIFICATE[REC]
In case the renewable energy is wheeled from the State to a consumer
or others outside the State, the normal wheeling charges as determined
in para 6.6.3 and 6.6.4 of this order shall be applicable. For Captive RE
generators including solar power projects opting for RECs, the wheeling
clxxxiv
and banking charges as specified in the orders issued by the
Commission from time to time shall be applicable.
6.7 Other tariff related issues:
i) CROSS SUBSIDY SURCHARGE:
BESCOM’s PROPOSAL:
BESCOM in its tariff petition has stated that the Cross Subsidy surcharge
has been worked out as per the MYT Regulations. Further, it is stated that
after considering +/- 20% over average cost of supply, the surcharge is
worked out at 80% as indicated below:
Paise/unit Voltage Level HT-2a HT-2b HT-2C HT-4 HT-5
66KV & above 151.32 300.59 158.79 64.33 456.90
HT level-
11KV/33KV
84.98 234.25 92.45 0 390.56
The determination of cross subsidy surcharge by the Commission is
discussed in the following paragraphs: -
The Commission in its MYT Regulations has specified the methodology for
calculating the cross subsidy and surcharge. Based on the above
methodology, the category-wise cross subsidy will be as indicated
below:
Particulars
HT-1
Water
Supply
HT-2a
Industries
HT-2b
Commercial
HT-2
(C)
HT3 (a)
Lift
Irrigation
HT3 (b)
Irrigation &
Agricultural
Farms
HT-4
Residential
Apartments
HT5
Temporary
Average Tariff-
Paise/unit 498.81 721.70 902.87 735.25 181.60 398.01 625.67 1509.97
Cost of supply
at 5% margin
@ 66 kV and
above level
565.04 565.04 565.04 565.04 565.04 565.04 565.04 565.04
Cross subsidy
surcharge
paise/unit @ 66
kV & above
level
-66.23 156.66 337.83 170.21 -383.44 -167.03 60.63 944.93
Cost of supply
at 5% margin
@ HT level
607.04
607.04 607.04 607.04 607.04 607.04 607.04 607.04
Cross subsidy
surcharge
paise/unit @ HT
level
-108.22 114.66 295.83 128.21 -425.44 -209.03 18.63 902.94
For the categories where the surcharge is negative, the surcharge is
made zero at the respective voltage level. For the remaining
clxxxv
categories, the Commission decides to determine the surcharge at 75%
(instead of the 80% considered in its Tariff Order dated 02.03.2015) of the
cross subsidy amount as worked out above, as the cross subsidy
surcharge has to be gradually reduced. Thus, the cross subsidy
surcharge is determined as under rounding off to the nearest paise:
Paise/unit
Voltage
level
HT-1 HT-2a HT-2b HT-2c HT-3a HT-3b HT-4 HT-5
66 kV &
above
0 118 253 128 0 0 45 709
HT level-11
kV/33kV
0 86 222 96 0 0 14 677
The Cross Subsidy Surcharge (CSS) determined in this order shall be
applicable to all open access/wheeling transactions in the area coming
under BESCOM. However, the above CSS shall not be applicable to the
captive generating plant of a consumer for carrying electricity to the
destination of his own use and for those renewable energy generators
who have been exempted from CSS by the specific orders of the
Commission.
The Commission directs the Licensees to account the transactions under
open access separately. Further, the Commission directs the Licensees
to carry forward the amount realized under Open Access/wheeling to
the next ERC, as it is an additional income to the Licensees.
ii) Rebate for use of Solar Water Heater:
The Commission has decided to retain the existing rebate of 50 paise
per unit subject to a maximum of Rs.50 per installation per month for use
of solar water heaters.
iii) Prompt payment incentive:
The Commission had approved a prompt payment incentive (i) in all
cases of payment through ECS; and (ii) in the case of monthly bill
exceeding Rs.1,00,000/- (Rs.One lakh). The earlier rate of incentive was
clxxxvi
0.25 % of the bill amount. The Commission decides to continue the
same.
iv) Relief to Sick Industries:
The Government of Karnataka has extended certain reliefs for
revival/rehabilitation of sick industries under the New Industrial Policy
2001-06 vide G.O. No. CI 167 SPI 2001, dated 30.06.2001. Further, the
Government of Karnataka has issued G.O No.CI2 BIF 2010, dated
21.10.2010. The Commission, in its Tariff Order 2002, had accorded
approval for implementation of reliefs to the sick industries as per the
Government policy and the same was continued in the subsequent
Tariff Orders. However, in view of issue of the G.O No.CI2 BIF 2010, dated
21.10.2010, the Commission has accorded approval to the ESCOMs for
implementation of the reliefs extended to sick industrial units for their
revival / rehabilitation on the basis of the orders issued by the
Commissioner for Industrial Development and Director of Industries &
Commerce, Government of Karnataka.
v) Power Factor:
The Commission in its previous order had retained the PF threshold limit
and surcharge, both for LT and HT installations at the levels existing as in
the Tariff Order 2005. The Commission has decided to continue the same
in the present order as indicated below:
LT Category (covered under LT-3, LT-4, LT-5 & LT-6 where motive power is
involved): 0.85
HT Category: 0.90
vi) Rounding off of KW / HP:
In the Tariff Order 2005, the Commission had approved rounding off of
fractions of KW / HP to the nearest quarter KW / HP for the purpose of
billing and the minimum billing being for 1 KW / 1HP in respect of all the
categories of LT installations including IP sets. This shall continue to be
followed. In the case of street light installations, fractions of KW shall be
clxxxvii
rounded off to the nearest quarter KW for the purpose of billing and the
minimum billing shall be for a quarter KW.
vii) Interest on delayed payment of bills by consumers:
The Commission, in its previous Order had approved interest on delayed
payment of bills at 12% per annum. The Commission decides to
continue the same in this Order also.
viii) Security Deposit (3 MMD/ 2 MMD):
The Commission had issued K.E.R.C. (Security Deposit) Regulations, 2007
on 01.10.2007and the same has been notified in the Official Gazette on
11.10.2007. The payment of security deposit shall be regulated
accordingly, pending orders of the Hon’ble High Court in WP
No.18215/2007.
ix) Mode of Payment by consumers:
The Commission, in its previous Order had approved revenue payment
in cash/cheque/DD of amounts up to and inclusive of Rs.10,000/- and
payment of amounts above Rs.10,000 to be made only through cheque.
The consumers can also make payment of power bills through Electronic
Clearing System((ECS)/ Credit card/ online E-payment up to the limit
prescribed by the RBI.
BESCOM in its application had proposed to consider the collection of
power supply bills above One lakh rupees, through RTGS/NEFT. The
Commission has examined the request of BESCOM, and decides to
approve the payment of power supply bills above One lakh rupees,
through RTGS/NEFT, at the option of the consumer.
6.8 Cross Subsidy Levels for FY17:
The Hon’ble Appellate Tribunal for Electricity (ATE), in its order dated 8th
October, 2014, in Appeal No.42 of 2014, has directed the Commission to
clearly indicate the variation of anticipated category wise average
revenue realization with respect to overall average cost of supply in
clxxxviii
order to implement the requirement of the Tariff Policy that tariffs are
within ±20% of the average cost of supply, in the tariff orders being
passed in the future. It has further directed the Commission to also
indicate category-wise cross subsidy with reference to voltage-wise cost
of supply so as to show the cross subsidies transparently.
In the light of the above directions, the variations of the anticipated
category-wise average realization with respect to the overall average
cost of supply and also with respect to the voltage-wise cost of supply of
BESCOM and the cross subsidy thereon, is Indicated in ANNEXURE - III of
this Order. It is the Commission’s endeavour to reduce the cross subsidies
gradually as per the Tariff policy.
6.9 Effect of Revised Tariff:
As per the KERC (Tariff) Regulations 2000, read with the MYT Regulations
2006, the ESCOMs have to file their applications for ERC/Tariff before 120
days of the close of each financial year in the control period. The
Commission observes that the ESCOMs have filed their applications for
revision of tariff on 15th December, 2015 (within the time extended by the
Commission). As the tariff revision is effective from 1st April, 2016
onwards, ESCOMs would be recovering revenue for eleven months of
the Financial Year.
A statement indicating the proposed revenue and approved revenue is
enclosed vide Annexure III and detailed tariff schedule is enclosed vide
Annexure IV.
6.10 Summary of the Tariff Order:
The Commission has approved an ARR of Rs.15764.97 Crores for FY17
which includes the deficit for FY15 of Rs.11.21 Crores and the
Regulatory Asset of Rs.541.97 Crores with a total gap in revenue of
Rs.1267.62 Crores as against BESCOM’s proposed ARR of Rs.17556.47
Crores.
The Commission has allowed recovery of entire gap in revenue with
additional revenue of Rs.1267.62 Crores on Tariff Revision as against
clxxxix
the additional revenue of Rs.2810.01 Crores proposed by BESCOM for
FY17.
BESCOM had proposed an increase of 102 paise per unit for all
categories of consumers resulting in average increase in retail supply
tariff by 19.05%. The Commission has approved an average increase
of 48 paise per unit. The average increase in retail supply tariff of all
the consumers for FY17 is 9%.
The Commission has allowed for recovery of additional revenue
partly by increase in fixed charges ranging from Rs.5 per
KW/HP/KVA to Rs.10 per KW/HP/KVA.
The Commission has allowed for recovery of additional revenue
partly by increase in the energy charges in the range of 15
paise per unit to 50paise per unit.
The increase in energy charge for commercial category is 20
paise per unit for LT industries category is in the range of 15
paise per unit to 30 paise per unit and for other categories is in
the range of 20 paise per unit to 50 paise per unit.
Time of the day tariff which was made mandatory in the previous Tariff
Orders for installations under HT2 (a), HT2 (b) and HT2(c) with contract
demand of 500KVA and above is continued in this Order.
Green tariff of additional 50 paise per unit over and above the
normal tariff which was introduced in the previous tariff order
for HT industries and HT commercial consumers at their option,
to promote purchase of renewable energy from ESCOMs, is
continued in this Order.
As in the previous Orders, the Commission has continued to
provide a separate fund for facilitating better Consumer
Relations /Consumer Education Programmes.
cxc
The cap on cost of short-term power purchase to meet shortfall
in supply is continued at Rs.4.50 per unit.
6.11 Commission’s Order
1. In exercise of the powers conferred on the Commission under
Sections 62, 64 and other provisions of the Electricity Act, 2003, the
Commission hereby determines and notifies the retail supply tariff of
BESCOM for FY17 as stated in Chapter-6 of this Order.
2. The tariff determined in this order shall be applicable to the
electricity consumed from the first meter reading date falling on or
after 1st April 2016.
3. This Order is signed dated and issued by the Karnataka Electricity
Regulatory Commission at Bengaluru this day, the 30th March, 2016.
Sd/-
(M.K.Shankaralinge Gowda)
Chairman
Sd/-
(H.D.Arun Kumar)
Member
Sd/-
(D.B.Manival Raju)
Member
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APPENDIX
ISSUE OF NEW DIRECTIVES AND
REVIEW OF COMPLIANCE OF DIRECTIVES ISSUED BY THE
COMMISSION
1. The following new directive is issued by the Commission
Directive on Energy Conservation:
In view of the increase in cost of electricity and the constraints in
capacity additions to generate additional power to meet the increase
in demand, it is imperative that all the consumers use energy efficient
equipment and adopt energy conservation measures, in their daily
activities to conserve electricity. To achieve this, the Commission has
notified the Demand Side Management Regulations, 2015, on
28.07.2015. As per these Regulations, the ESCOMs have to implement
Demand Side Management (DSM) and Energy Efficiency (EE)
programmes in their jurisdiction, to mitigate peak and energy shortages
by adoption of conservation technologies for more efficient use of
electricity. The objective is to flatten the load curve by reducing the
loads in their respective areas leading to reduction in system peak load.
The Commission has noted that the ESCOMs have already initiated the
DELP (Domestic Efficient Lighting programme) for supplying/distributing 9
watts capacity LED bulbs to the consumers at a subsidised price. This
initiative will certainly help conserve substantial quantum of energy used
for domestic lighting, provided all the consumers accept and adopt it.
In addition to the above initiative, the Commission notes that there is a
scope for energy conservation in use of equipment like Air Conditioners,
Fans, Refrigerators etc., in domestic/ commercial and industrial
cxcii
installations. Also, use of LED lamps/energy efficient lamps like induction
lamps in all the streetlight installations including high mast street light
installations should be considered so as to make energy conservation
measures more broad based across wider range of consumers.
Therefore, the Commission hereby directs the ESCOMs to service all the
new installations only after ensuring that the BEE ***** (Bureau of Energy
Efficiency five star rating) rated Air Conditioners, Fans, Refrigerators, etc.,
are being installed in the applicant consumers’ premises.
Similarly, all new streetlight/high mast installations including extensions
made to the existing streetlight circuits shall be serviced only with LED
lamps/energy efficient lamps like induction lamps.
Further, the Commission directs the ESCOMs to take up programmes to
educate all the existing domestic, commercial and industrial consumers,
through media and distribution of pamphlets along with monthly bills,
regarding the benefits of using five star rated equipment certified by the
Bureau of Energy Efficiency in reduction of their monthly electricity bills
and conservation of precious energy.
2. Review of Compliance of Existing Directives:
The Commission had in its earlier tariff orders and other communications
issued several directives for compliance by the BESCOM. While
reproducing such directives, the compliance of the directives as
reported by the BESCOM is analysed in this Section.
i. Directive on implementation of Standards of Performance (SoP)
The directive was:
“The BESCOM is directed to strictly implement the specified Standards of
Performance while rendering services related to supply of power as per
the KERC (Licensee’s Standards of Performance) Regulations, 2004.
Further, the BESCOM is directed to display prominently in both Kannada
cxciii
& English languages, the details of various critical services such as
replacing the failed transformers, attending to fuse off call / line
breakdown complaints, arranging new services, change of faulty energy
meters, reconnection of power supply, etc., rendered by it as per
Schedule-1 of the KERC (Licensee’s Standards of Performance)
Regulations, 2004 and Annexure-1 of the KERC (Consumer Complaints
Handling Procedure) Regulations, 2004, on the notice boards in all the O
& M sections and O & M sub-divisions in its jurisdiction for the information
of consumers as per the following format.
Nature of Service
Standards of
performance
(indicative
minimum time
limit for rendering
services)
Primary
responsibility
centers where to
lodge complaint
Next higher
Authority
Amount payable
to affected
consumer
The BESCOM shall implement the above directives within one month
from the date of this order and report compliance to the Commission
regarding the implementation of the directives”.
Compliance by the BESCOM:
The BESCOM vide letter No: BC-26/F-2411/2009-10/517, dated 14.08.2015,
has submitted the compliance to the Commission, in respect of the
directive on the Standards of Performance. That per the directions of the
Commission, the details of the specified Standards of Performance in
accordance with the KERC (Licensee’s Standards of Performance)
Regulations, 2004 and the KERC (Consumer Complaints Handling
Procedure) Regulations, 2004, have been displayed in both Kannada
and English on the notice boards in all the O&M section and subdivision
offices.
cxciv
Commission’s Views:
The Commission notes that the BESCOM has complied with the directive
by displaying the details of specified Standards of Performance both in
Kannada and English on the notice boards in all its O & M sections and
subdivision offices for the information of the consumers. The Commission
directs the BESCOM to adhere to the specified standards of performance
while rendering services to ensure that consumer complaints are
attended to in a time bound manner.
The Commission reiterates its directive to the BESCOM to continue to
strictly implement the specified Standards of Performance while
rendering services related to supply of power as per the KERC (Licensee’s
Standards of Performance) Regulations, 2004. Compliance of the same
shall be submitted to the Commission on a quarterly basis regularly.
ii. Directive on use of safety gear by linemen
The directive issued was:
“The Commission directs the BESCOM to ensure that all the linemen in its
jurisdiction are provided with proper and adequate safety gear and also
ensure that the linemen use such safety gear provided while working on
the network. The BESCOM should sensitise the linemen about the need
for adoption of safety aspects in their work through suitably designed
training and awareness programmes. The BESCOM is also directed to
device suitable reporting system on the use of safety gear and mandate
supervisory/higher officers to regularly cross check the compliance by
the linemen and take disciplinary action on the concerned if violations
are noticed. The BESCOM shall implement this directive within one month
from the date of this order and submit compliance report to the
Commission.”
cxcv
Compliance by the BESCOM:
The BESCOM vide letter No: BC-26/F-2411/2009-10/517, dated 14.08.2015
has submitted the compliance on use of safety gear by linemen.
Safety tools such as safety gloves, earthing rods, safety helmets, belts,
cutting plies, LT tester etc., have already been provided to all the field
staff and action is being initiated to procure new safety materials like
safety shoes, helmets with electronic induction tester, safety belts, fiber
ladder and safety goggles to all the field staff.
Further, the following safety measures are implemented:
i. Instructions are issued from corporate office to follow the safety
protocol at work.
ii. Instructions are issued to field staff to sign the checklist provided
before attending to any kind of work. The concerned section officer
has to check whether the staff has carried to the work, all the safety
tools provided to them.
iii. Surprise inspection of works is being carried out to check whether the
safety materials are used, safety zone is created etc., as per the
check list provided. Casual leave for one day is deducted if any of
the staff is found not using the safety tools provided to them.
iv. Once a week, usually on every Monday morning before the start of
work, the section officer explains about safety aspects and use of
safety gadgets during the work, to all the linemen under his
jurisdiction. The section officer also instructs the linemen not to take
up the work without availing line clear/ work permit and creating
safe working zone. Further, all the linemen take safety pledge.
v. The BESCOM has imparted safety training at HRD Centre, BESCOM for
1,286 linemen, during the FY15 and 298 linemen during the FY16.
Commission’s Views:
cxcvi
The Commission notes that the BESCOM has provided safety gadgets to
all of its linemen and also taken action to provide additional safety tools
required in the field. It is important that the BESCOM should continue to
focus on safety aspects to reduce the electrical accidents occurring due
to negligence on the part of the field staff and also non adherence of
safety procedures by them while working on the network. It is also
important that the frequency of imparting training to linemen should be
increased so that adherence to safety aspects becomes part of their
routine.
The Commission reiterates its directive that the BESCOM shall ensure that,
all the linemen in its jurisdiction are provided with proper and adequate
safety gear and the linemen use such safety gear provided while working
on the network. The compliance in this regard shall be submitted once in
a quarter to the Commission regularly.
iii. Directive on providing Timer Switches to Street lights by the
ESCOMs
The directive issued was:
“The Commission directs the BESCOM to install timer switches using own
funds to all the street light installations in its jurisdiction wherever the local
bodies have not provided the same and later recover the cost from
them. The BESCOM shall also take up periodical inspection of timer
switches installed and ensure that they are in working conditions. They
shall undertake necessary repairs / replacement work, if required and
later recover the cost from local bodies. The compliance regarding the
progress of installation of timer switches to street light installations shall be
reported to the Commission within three months of the issue of the
order.“
Compliance by the BESCOM:
cxcvii
The BESCOM vide letter No: BC-26 /F-2411/2009-10/517, dated
14.08.2015, has submitted the compliance on the directive:
The progress of timer switches installed in the BESCOM is furnished below:
Zone
No. of
street light
ckts.
existing as
on Nov-15
No. of timer
switches fixed as
on Nov-15
No. of timer
switchers in working
condition as on
Nov-15.
BMAZ 19510 14340 11692
BRAZ 19072 341 341
CTAZ 14198 137 76
Total 52,780 14,818 12,109
Further, the Government of Karnataka has initiated a new programme
“Nagara Jyothi” through M/s EESL, a Joint venture of the MoP, GoI, for
replacement of SV/MV/FL streetlight fixtures by energy efficient LED
lamps with provision of smart timer switches in urban local bodies vide
Govt. Order No: EN/52/ VSC/2015, dtd:17.06.2015. In this scheme, the
initial cost will be borne by M/s EESL under an ESCO model. The
finalization of agreement under an ESCO model between the GoK and
M/s EESL is in process. The BESCOM is coordinating for the above project.
Since the initiative is being taken by the Government in parallel, it is
requested to kindly exclude the above directive from the Commission.
Commission’s Views
The Commission notes that the BESCOM has provided timer switches to
around 28 per cent of the total streetlight installations, of which around 18
per cent of them are not functioning. The BESCOM is required to move
the concerned authorities for taking up necessary action for
repair/replacement of the non working timer switches in its jurisdiction to
ensure that illumination time of streetlights is properly regulated avoiding
wastage of electricity.
cxcviii
Further, providing timer switches to streetlight installations under “Nagara
Jyothi” programme through M/s EESL needs to be earnestly pursued by
the BESCOM to ensure installation of timer switches covering all street light
installations. The progress /status in this regard shall be reportd to the
Commission on a quarterly basis, regularly.
The Commission reiterates that the streetlight installations should be
provided with timer switches for enabling them to be automatically
switched on only during the scheduled time. This measure would not
only save significant quantum of energy that is currently wasted
because of inefficient and unreliable manual operation of the switches
which allow them to be lit unnecessarily even during day time, but also
ensure that streetlights are lit during the scheduled dark hours when the
general public require them. As directed earlier the BESCOM should
install the timer switches at their cost and later recover it from the local
bodies. Persuading the local bodies to fix timer switches at their own
cost availing funds / grants received from Government and other
agencies for such programmes / works should also be explored seriously.
The Commission further directs the BESCOM that henceforth, the new
streetlight installations and any extension/modification to be carried out
to the existing streetlight installations shall be serviced only with timer
switches.
iv. Directive on load shedding:
The Commission had directed that:
1) Load shedding required for planned maintenance of transmission /
distribution networks should be notified in daily newspapers at least
24 hours in advance for the information of consumers.
2) The ESCOMs shall on a daily basis estimate the hourly requirement of
power for each sub-station in their jurisdiction based on the seasonal
conditions and other factors affecting demand.
cxcix
3) Any likelihood of shortfall in the availability during the course of the
day should be anticipated and the quantum of load shedding
should be estimated in advance. Specific sub-stations and feeders
should be identified for load shedding for the minimum required
period with due intimation to the concerned sub-divisions and sub-
stations.
4) The likelihood of interruption in power supply with time and duration
of such interruptions may be intimated to consumers through SMS
and other means.
5) Where load shedding has to be resorted to due to unforeseen
reduction in the availability of power, or for other reasons, consumers
may be informed of the likely time of restoration of supply through
SMS and other means.
6) Load shedding should be carried out in different sub-stations /
feeders to avoid frequent load shedding affecting the same sub-
stations / feeders.
7) The ESCOMs should review the availability of power with respect to
the projected demand for every month in the last week of the
previous month and forecast any unavoidable load shedding after
consulting other ESCOMs in the State about the possibility of inter-
ESCOM load adjustment during the month.
8) The ESCOMs shall submit to the KERC their projections of availability
and demand for power and any unavoidable load shedding for
every succeeding month in the last week of the preceding month for
approval.
9) The ESCOMs shall also propose specific measures for minimizing load
shedding by spot purchase of power in the power exchanges or
bridging the gap by other means.
10) The ESCOMs shall submit to the Commission sub-station wise and
feeder wise data on interruptions in power supply every month
before the 5th day of the succeeding month.
The Commission had directed that the ESCOMs shall make every effort
to minimize inconvenience to consumers strictly complying with the
cc
above directions. The Commission had indicated that it would review
the compliance of directions on a monthly basis for appropriate orders.
Compliance by the BESCOM:
The prevailing power supply arrangements in the BESCOM, is
submitted as follows:
a) Load Restriction:-
Domestic / residential feeders in Bangalore City: 2 to 4 hours
Commercial feeders: 2 hours
Staggering of holidays for industrial feeders
Town feeders (other than Bangalore City): 2 to 6 hours
NJY feeders: 2 to 6 hours
b) Hours of power supply for agriculture feeders:-
Rural mixed feeders : 3 phase: 4 to 5 hours; single phase: 7 to 8
hours
Exclusive agriculture feeders : 3 phase: 4 to 5 hours; single
phase: 4 hours
The above power supply restrictions were imposed due to shortage in
availability of power, consequent to less than 50 per cent water storage
in Linganamakki, Supa & Mani major Hydel power plants, resulting in
Hydel generation being restricted to 5 MU per day at these power
plants.
However, to meet the deficit of power, the following measures have
been taken by the BESCOM:
Purchase of power to an extent of 645 MW under STOA and
power purchase under Section 11.
Purchase of power to an extent of 450 MW from Damodar Valley
Corporation through PPA.
Utilizing 92 MW additional power allocated from the CGS share
(unallocated share).
Hydro generation will be increased during ensuing summer and
school examinations.
cci
However, at present, consequent to reduction in demand due to wide
spread rainfall in the BESCOM’s jurisdiction, there is no power cut in the
BESCOM.
At present, the BESCOM has developed a web based SDRA application
which utilizes the SCADA data and generates MIS reports on power
supply position, performance of feeders and also hours of power supply
in geographical area wise, pubic constituency wise and also the
BESCOM O&M unit wise. Using this software messages through SMS are
being sent to public representatives. As regards sending of SMSes about
load shedding to the public / consumers, the same is in process. Also,
integration of this application with computers of station log book
application developed by the KPTCL, to fill up the gaps in the data
acquired through SCADA, is in progress.
As of now, the BESCOM is furnishing day ahead requirement to the SLDC
for the requirement of power and based on the requirement and
availability, the SLDC is allocating power. In future, the BESCOM will
furnish the projected requirement on month ahead basis to the
Commission.
Commission’s Views:
The Commission observes that the BESCOM is not submitting its
projections of availability and demand for power and any unavoidable
load shedding for every succeeding month in the last week of the
preceding month to the Commission regularly. The BESCOM shall
henceforth submit the same regularly to the Commission. The
Commission also notes that the BESCOM has not expedited the
‘application software’ which it has been developing through
Consultants for integration with the SCADA data to enable providing
information to the consumers through SMSes regarding the time and
duration of probable interruptions. This has to be expedited as the
consumers need to be informed through SMSes regarding both
ccii
scheduled and un-scheduled load shedding due to reasons such as
system constraints, breakdowns of lines/equipment, maintenance etc.,
This would address significantly the consumers’dissatisfaction on this
issue.
Further, it is also necessary to avoid load shedding involving the same
sub-stations/feeders; the same should be done on rotation basis to avoid
inconvenience to consumers/public.
The Commission reiterates that the BESCOM shall comply with the
directive on load shedding and submit monthly compliance reports to
the Commission regularly.
v. Directive on Establishing a 24x7 Fully Equipped Centralized
Consumer Service Center for Redressal of Consumer
Complaints:
The directive was as under:
“The BESCOM is directed to put in place a 24x7 fully equipped
Centralized Consumer Service Center at its Headquarters with a state of
the art facility/system for receiving consumer complaints and monitoring
their redressal so that electricity consumers in its area of supply are able
to seek and obtain timely and efficient services in the matter of their
grievances. Such a Service Center shall have adequate desk operators
in each shift so that the consumers across the jurisdiction of the BESCOM
are able to lodge their complaints to this Centre.
Every complaint shall be received on helpline telephone number by the
desk operator and registered with a number which shall be intimated to
the Consumer. In turn the complaints shall be transferred online to the
concerned field staff for resolving the same. The concerned O&M/local
service station staff shall visit the complainant’s premises at the earliest to
attend to the complaints and then inform the Centralized Service Centre
that the complaint is attended. Then, the desk operator shall also call
the complainant and confirm with him whether the complaint has been
cciii
attended. The complaints shall be closed only after receiving
consumer’s confirmation. Such a system should also generate daily
reports indicating the number/nature of complaints received,
complaints attended, complaints pending and reasons for not attending
to the complaints along with the names of the officers responsible with
remarks be placed before the Managing Director on the following day
for his attention who would review and take corrective action in case of
any pendency/delay in attending to the complaints.
The BESCOM shall publish the details of complaint handling procedure/
Mechanism with contact numbers in the local media or in any other
form periodically for the information of the consumers. The compliance
of the action taken in the matter shall be submitted to the Commission
within two months from the date of this Order.
Further, the Commission directs the BESCOM to establish/strengthen 24x7
service stations, equipping them with separate vehicles & adequate line
crew, safety kits and maintenance materials at all its sub-divisions
including the rural areas for effective redressal of consumer complaints.
The Commission also directs the BESCOM to hold Consumer Interaction
Meetings in each O&M sub-division once in every two months according
to a published schedule and invite consumers in advance to participate
in such meetings to facilitate them sort out their grievances. Such
meetings shall be chaired by officers of the level of the Superintending
Engineers and attended by the concerned divisional and sub-divisional
Engineers. The BESCOM shall submit compliance of the same to the
Commission once in a quarter”.
Compliance by the BESCOM:
The BESCOM has issued necessary instructions to all the field officers to
reduce the complaint downtime and to ensure reliable and quality
power supply to all the consumers. The replacements of faulty
cciv
transformers are being carried out effectively in both urban and rural
areas. It is ensured that the faulty transformers are being replaced well
within the specified time without any delay. In urban areas, the
complaints pertaining to failure of transformers are being attended to
within 24 hours and in rural areas within 72 hours without fail. In case of
any delay, the concerned officers are being penalized for the lapses.
Time and again the field officers are being sensitized about their
responsibility with regard to rendering of prompt and efficient services to
ensure consumer satisfaction.
As directed, the customer interaction meetings are being publicized by
communicating to the consumers through e-mails, letters, pamphlets
etc. The concerned CEs, SEs and EEs have been instructed to be present
at the customer interaction meetings held at the subdivision offices as
per the scheduled timings to redress the grievances of consumers. Also,
the photographs/videos taken at such meetings are being uploaded in
the BESCOM’s website.
The BESCOM has been publicizing the Helpline number “1912” in every
possible way, regularly without fail, for the information of the public. Also,
the Helpline number is posted on the website and Facebook. In all the
advertisements and electricity related correspondences, this number is
being displayed for the information of the customers. It is ensured that all
the complaints are getting registered through this centralized Helpline
only.
Further, all the consumer complaints are being registered in the web
enabled PGRS (Public Grievance Redressal System) application.
Whenever any consumer registers his complaint, he is provided with a
docket number, using which the consumer can track the status of his
complaint through Helpline or the BESCOM website. Further, for the
speedy redressal of complaints, the BESCOM has established Circle
Control Rooms in all the O&M Circles. The executives in the Circle Control
ccv
Rooms follow up of complaints pertaining to their Circles till they are
resolved.
The BESCOM has established full fledged service stations at subdivision
/section levels. All the existing service stations have been provided with
adequate men, branded vehicles, necessary equipment and
maintenance materials time to time, in order to attend to the consumer
complaints well within the specified time.
The details of number of consumer complaints received and attended
within time limit from April to November, 2015, is as hereunder:
Month
Total
complaints
received
Total
complaints
attended
Total
complaints not
attended
April 15 1,23,168 1,23,167 1
May 15 1,07,835 1,07,833 2
June 15 84,732 84,720 12
July 15 84,207 84,195 12
August 15 86,282 86,251 31
September 15 96,109 96,087 22
October 15 82,579 82,537 42
November 15 83,363 83,298 65
Total 7,48,275 7,48,088 187
Commission’s Views
The Commission appreciates that the BESCOM has taken adequate
measures aimed at effective redressal of consumer complaints in its
jurisdiction. The BESCOM is directed to continue to focus on improving
the consumer services and further reduce the consumer complaint
downtime to ensure prompt services to them. The BESCOM should ensure
prompt response to consumer complaints about interruptions in power
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supply due to breakdown of lines/equipment, replacement of faulty
transformers etc. The BESCOM should sensitize its field staff in this regard.
The BESCOM shall continue to ensure that the higher officers are present
in the conumer interaction meetings at the subdivisions to effectively
redress the grievances of the consumers.
The Commission reiterates its directive to the BESCOM to publish the
complaint handling procedures / contact number of the Centralized
Consumer Service Centre regularly in the local media and other modes
periodically for the information of public and ensure that all the
complaints of consumers are registered only through the centralized
consumer service centre for proper monitoring of disposal of complaints
registered.
The compliance in the matter shall be submitted to the Commission
once in a quarter regularly.
vi. Directive on Energy Audit
The Commission had directed the BESCOM to prepare a metering plan
for energy audit to measure the energy received in each of the
Interface Points and to account for the energy sales. The Commission
had also directed the BESCOM to conduct energy audit and chalk out
an action plan to reduce distribution losses to a maximum of 15 per cent
wherever it was above this level in towns/ cities having a population of
over 50,000.
The Commission had earlier directed all the ESCOMs to complete
installation of meters at the DTCs by 31st December, 2010. In this regard
the ESCOMs were required to furnish to the Commission the following
information on a monthly basis:
a) Number of DTCs existing in the Company.
b) Number of DTCs already metered.
ccvii
c) Number of DTCs yet to be metered.
d) Time bound monthly programme for completion of the work.
Compliance by the BESCOM:
DTC Metering and Energy Audit:
1. The BESCOM has taken all measures for conducting energy audit in
RAPDRP and non-RAPDRP areas. However, the reports generated are
not consistent due to incomplete consumer indexing. Tagging of
feeders to DTCs and DTCs to respective consumers in non-RAPDRP
area is in progress. It was found that the consumer indexing was not
proper, due to which the DTC wise energy audit was not depicting
the true picture. The BESCOM has taken measures from 1st
December. 2015, in all sub-divisions to properly tag all DTCs so that
the energy audit reports reflect true picture. The process is going on,
and it will be completed by the end of January 2016. In the month of
February 2016, the BESCOM will be in a position to give a system
generated energy audit reports. After this, feeder wise/ DTC wise loss
reports will be generated and the same will be submitted to the
Commission for the month of February 2016. Also, the remedial
measures will be initiated to reduce the losses in those DTCs which
have higher energy losses.
2. DTC metering including installation of Modems in all 24 towns of
RAPDRP area is completed and the data is to be integrated with
RAPDRP system. This process will be completed by December, 2015,
and after this activity, the DTC wise energy audit can be generated.
3. In Bangalore, only 660 DTCs have to be provided with meters. Out of
42,976 DTCs, Modems have been installed for 9,054 DTCs and the
remaining is expected to be completed before the January, 2016.
The energy audit reports of 24 towns for the month of September 2015
are given below:
ccviii
Town Name Net Input
Energy MU
Energy
Sales MU
Losses
MU
T&D
Loss%
Demand
(Crs.)
Collection
(Crs.)
Billing
Efficiency
Collection
Efficiency
Baseline
ATC Loss
Data (%)
AT&C
Loss %
Anekal 3.21 2.91 0.29 0.09 1.67 1.34 90.82 80.01 30.30 27.34
Bangarapaete 2.82 2.41 0.40 0.14 1.46 1.25 85.65 85.96 28.90 26.37
Challekere 1.93 1.71 0.22 0.11 1.03 0.98 88.65 95.07 23.34 15.72
Channapattana 3.17 2.93 0.24 0.08 1.70 1.30 92.40 76.37 32.84 29.43
Chickaballapur
a 2.90 2.51 0.39 0.14 1.52 1.34 86.49 88.15 25.44 23.76
Chinthamani 3.27 2.80 0.48 0.15 1.45 1.40 85.42 96.97 30.53 17.17
Chitradurga 4.46 4.04 0.42 0.10 2.57 2.47 90.49 96.20 19.51 12.95
Davangere 16.88 15.79 1.09 0.06 10.16 9.39 93.55 92.33 20.50 13.62
Doddaballapur
a 4.08 3.93 0.15 0.04 2.25 2.31 96.21 102.54 19.60 1.35
Gowribidnur 2.17 1.78 0.39 0.18 0.98 0.84 82.13 85.26 27.15 29.97
Harappanahalli 1.08 0.97 0.12 0.11 0.55 0.49 89.13 89.78 17.85 19.98
Harihara 3.35 2.98 0.36 0.11 1.90 1.66 89.16 87.59 18.04 21.90
Hiriyur 2.11 1.93 0.18 0.09 1.19 0.70 91.40 59.36 33.44 45.74
Hosakote 2.98 2.70 0.28 0.09 1.45 1.33 90.66 91.71 31.92 16.86
K.G.F 4.67 3.89 0.78 0.17 2.11 1.74 83.23 82.57 31.13 31.28
Kanakapura 2.13 1.80 0.33 0.15 1.00 1.05 84.54 104.93 23.57 11.29
Kolar 5.80 4.97 0.83 0.14 4.72 4.44 85.64 94.05 32.20 19.45
Kunigal 1.39 1.34 0.04 0.03 0.80 0.58 96.79 72.95 28.83 29.39
Mulabagilu 1.53 1.35 0.18 0.12 0.77 0.61 88.34 78.20 38.83 30.92
RamaNagara 4.64 4.24 0.40 0.09 2.31 2.22 91.35 95.87 28.64 12.43
Shidlagatta 1.98 1.63 0.36 0.18 0.96 0.92 82.01 95.93 24.19 21.33
Shira Town 1.68 1.34 0.35 0.21 0.85 0.76 79.44 89.62 26.71 28.81
Tiptur 2.99 2.38 0.61 0.20 1.52 1.40 79.70 91.98 22.81 26.69
Tumkur 20.80 19.46 1.34 0.06 12.80 11.87 93.57 92.77 21.14 13.20
4. The energy audit reports in cities / towns for the period from April to
October, 2015, are enclosed at Annexure-6. It can be noted that the
average energy loss is around 13.15 per cent and the action will be
taken to reduce the loss levels in towns where it is more than 15 per
cent with the following measures:
To meter all installations including IP sets coming under town
/ city feeders.
To carry out more stringent vigilance activity to prevent
commercial losses.
To conduct stringent validation of data and analysis.
To strengthen the distribution system under IPDS including
replacement of old mechanical meters by high precision electro
static meters.
Commission’s Views:
The Commission notes that the BESCOM has not submitted regularly the
monthly analysis of energy audit conducted in cities/towns. As seen from
ccix
the consolidated energy audit statement for the period from April to
October, 2015, submitted to the Commission during the validation
meeting, 9 of the 24 towns have AT&C losses more than the mandated
15 per cent. Similarly, as per the energy audit statement for Septemeber,
2015, as many as 18 towns have AT&C loss levels more than the
mandated 15 per cent with the Hiriyur topping the list with the highest at
45.74 per cent. The distribution losses are more than the permissible limit
of 10 per cent in 16 out of 24 feeders. There is also no mention of action
initiated to reduce the technical losses and improviving collection
efficiency to achieve the mandated A T & C Losses of less than 15 per
cent. This calls for taking urgent steps on the part of the BESCOM to bring
down the loss figures well below the targeted levels. The BESCOM is
directed to initiate suitable measures to further bring down the loss
levels.
The Commission further notes that the DTC metering is completed in all
the 24 towns where RAPDRP scheme is taken up. But, despite
completing the metering of the DTCs, the BESCOM has not taken up
comprehensive DTC wise energy audit, reportedly due to incompletion
of tagging of consumer installations with the concerned feeders/DTCs.
There has been an inordinate delay in tagging of consumer details with
the feeders/DTCs by the BESCOM. In fact the BESCOM during the
ESCOMs’ Review meetings held in the Commission had committed to
complete this exercise before August 2014, but the progress achieved is
not satisfactory.
The BESCOM is directed to take up energy audit of DTCs for which meters
have already been installed and to initiate corrective measures for
reducing distribution losses wherever they are above the targeted level.
The compliance in respect of DTC wise energy audit conducted with
analysis and the remedial action initiated to reduce loss levels shall be
submitted every month regularly to the Commission.
ccx
Further, the BESCOM is directed to submit to the Commission the
consolidated energy audit report for the FY16, as per the formats
prescribed by the Commission, vide its letter No: KERC/D/137/14/91
dated 20.04.2015, before 15th May 2016.
vii. Directive on Implementation of HVDS:
In view of the obvious benefits in the introduction of HVDS in reducing
distribution losses, the Commission had directed the BESCOM to
implement High Voltage Distribution System in at least one O & M division
in a rural area in its jurisdiction by utilizing the capex provision allowed in
the ARR for the year.
Compliance by the BESCOM:
1. The BESCOM has complied with the Commission’s directives to
identify the feeders having high LT/HT ratio and high distribution losses
and only such feeders are considered for implementation of HVDS
scheme. The BESCOM will submit the loss analysis report of all the
completed feeders to the Commission at the earliest.
2. The BESCOM has taken note of the directives of the Commission and
has initiated suitable action to reduce/minimize the estimate cost of
Kanakapura taluk duly considering the revised guidelines issued by
the Commission for implementation of HVDS and the feeders
selected are also having higher distribution losses.
The BESCOM has reduced the overall DPR cost of implementation of
HVDS scheme in Kanakapura taluk from Rs.174 Crores to Rs.137
Croores. In this regard, a letter already has been addressed to the
Commission on 9th April, 2015. Further, replies to the Commission’s
observations dated 13.05.2015 have been submitted vide letter
No.BESCOM/GM (Proj) / DGM (HVDS)/BE-14/15-16/3660-61, dated
08.01.2016.
ccxi
3. Further, BESCOM states that, it is bound to implement the HVDS
scheme in Kanakapura taluk as per the directions of the GoK.
4. The BESCOM has followed the guidelines for implementation of HVDS
scheme in rural subdivision division-2 of Tumakuru, which is an ongoing
scheme, as per the directions of the GoK.
5. As per the original award, eight feeders were awarded to M/s Asian
Fab Tech., Bengaluru, through rate contract on 08.05.2013 and the
time frame fixed was two years. Accordingly, work in respect of these
eight feeders was completed well before the targeted date on
31.08.2014. Only in respect of 15 feeders which were re-designated
from Doddaballapura and Kengeri to Tumkur RSD-2 on 02.08.2014,
works will be completed by the end of June 2016.
Sl.
No.
Name of the
sub-division
No. of
feeders
propos
ed for
HVDS
originall
y
Projec
t cost
in Rs.
Cr.
No. of
feeders
revised
in order
to take
up one
taluk as
pilot
project.
Re-
designa
ted
feeders
from
D.B.
Pura &
Kengeri
Revised
project
cost in
Rs. Cr.
No. of
Feeders
’ Work
comple
ted
No. of feeders
commissioned
No. of
feeders
work
under
progress
Expen
diture
incurre
d in
crores.
1 Tumkur RSD 1 17 146.2
5
25 8
246.01
17 17 8 144.86
2 Tumkur RSD 2 8 23 15 8 8 15
3 Kyathsandra 0 0 5 5 0 0 5 0
4 Chikkaballap
ura
6 34.8 6 0 74.62 6 6 0 51.7
5 Doddaballa
pura
31 193 9 -22 81.37 9 9 0 87.64
6 kengeri 6 34.8 0 -6 0 0 0 0 0
Total 68 408.8
5
68 0 402 40 40 28 284.2
6. Post evaluation analysis will be entrusted to a third party, after
completion of all the feeders and benefits accrued will be submitted
after its evaluation.
ccxii
Commission’s Views:
The Commission notes that out of the 68 feeders taken up for
implementation of HVDS in Tumakuru RSD 1 & 2, Chikkaballapura and
Doddaballapura subdivisions, 40 feeders have been so far commissioned,
which means that analysis can be carried out in respect of completed
feeders. The BESCOM is directed to take up analysis of the completed
feeders, to evaluate the benefits accrued to the system after
implementation of HVDS in these subdivisions vis-à-vis the objectives
envisaged in the DPR. Further, the BESCOM needs to expedite
implementation of HVDS in its jurisdiction by drawing up an action plan
for timely completion and to derive the envisaged benefits on
implementation of the scheme. The BESCOM is also directed to expedite
commissioning of 28 balance feeders and furnish the loss analysis in
respect of all the commissioned feeders to the Commission.
Further, the Commission with a view to minimize the cost has issued
revised guidelines for implementation of HVDS in sub-divisions/feeders
having highest distribution losses, so that a higher loss reduction could be
achieved on implementation of HVDS at a reasonable cost. The
BESCOM is directed to follow these guidelines to reduce the cost of
implementation of HVDS.
As regards the implementation of HVDS in Kanakapura sub-division, the
Commission had directed the BESCOM to get the cost estimates
prepared keeping in view the objective of bringing down the overall
costs of the project and thereafter seek separate approval from the
Commission before taking up the proposed work. On scrutiny of the DPR
of Kanakapura Urban & Rural, Harohall and Sathanur subdivisions of
Kanakapura Division and Kunigal rural subdivision of Tumkur division,
submitted to the Commission, by the BESCOM, the Commission has
noted many observations including the discrepancies in provision of
materials, released materials, credit values of released materials,
computation of energy loss reduction and techno-economicaal non-
ccxiii
viability issues. These observations were communicated to the BESCOM
for necessary action.
The Commission directs the BESCOM to follow the revised guidelines
issued by the Commission and implement HVDS programme in Tumakuru
rural sub-division1 & 2 as reported by it and submit the
progress/compliance thereon once in a quarter to the Commission
regularly . The Commission further directs the BESCOM to furnish the
feeder-wise post analysis of all the HVDS works executed and completed.
viii. Directive on NirantharaJyothi – Feeder Separation:
The ESCOMs were directed to furnish to the Commission the programme
of implementing 11 KV taluk wise feeders’ segregation with the following
details:
a) Number of 11 KV feeders considered for segregation.
b) Month wise time schedule for completion of envisaged work.
c) Improvement achieved in supply after segregation of feeders.
ccxiv
Compliance by the BESCOM:
Out of the 271 feeders taken up for segregation under phase-1, all the
feeders have been commissioned. Out of 281 feeders proposed in
phase-2, 271 feeders have been commissioned. The project is
scheduled for a total completion by December, 2015. For
NirantharaJyothi feeders, 20-22 hours of three phase power supply is
being arranged as envisaged under the DPR. The limiting number of
hours of power supply to IP sets i.e., for agriculture feeders is 7 hours at
three phases as per the decision of GoK.
Further, a total of 380 feeders are proposed under phase-3 of
Niranthara Jyothi to extend the Niranthara Jyothi scheme to the left out
villages and the areas earliar covered under RLMS scheme at a total
cost of Rs. 703 crore.
M/s MECON Limited, a Government of India undertaking has been
entrusted with pre and post analysis of feeders commissioned under
Niranthara Jyothi phase-1 and concurrent analysis of feeders
commissioned under phase-2 as follows:
1. Bangalore Rural : 24 feeders
2. Kolar : 08 feeders
3. Tumkur : 40 feeders
4. Davanagere : 28 feeders
M/s MECON has submitted a report in respect of feeders identified in
Davangere and Kolar Circles and which is validated by the concerned
superintending engineers (Ele.,). Further, M/s PRDCL has also evaluated
the pre and post analysis of feeders commissioned under Niranthara
Jyothi phase-1 in Harpanahalli Taluk, in Davanagere circle.
ccxv
The agencies have submitted a detailed report separately for each of
the feeders on which the analysis was carried out. The reports show
that the Niranthara Jyothi Yojane has benefited the rural population to
a considerable extent through better quality of power supply and in
providing 24 x7 power to the rural non agricultural loads. The
consumers are happy and satisfied with the better power supply
conditions prevailing after the implementation of Niranthara Jyothi
Yojane.
The benefits derived from Niranthara Jyothi Yojane scheme is noted
below:
24x7 power supply to villages:
The main purpose envisaged in the implementation of Niranthara
Jyothi Yojane is to arrange 24x7 uninterrupted power supply to the
villages. As seen from the vital statistics of the sub-stations feeding
the area, these villages which were having intermittent power
supply earlier, are now having continuous 3 phase power supply
and the BESCOM is not resorting to load shedding, which was the
case earlier. But, in few cases there have been continued
interruptions due to system constraints, line clear issues and
unforeseen faults. But, now after implementation of NJY, the
BESCOM is able to supply continuous uninterrupted quality power
supply for longer duration during morning and evening peak hours.
Energy input from sub-stations:
There is increase in consumption of both the metered category
installations and IP sets. However, the increase in IP consumption is
attributed to the increase in number of IP sets due to regularization
of unauthorized IP sets.
Increase in metered consumption:
The energy consumption of metered category installations has
ccxvi
shown an increase of about 25 to 30 per cent after the
implementation of NJY. In some of the cases where the exact
feeder-wise metered consumption was not furnished due to
change in billing software and non availability of previous data, a
sample of energy consumption of a few installations selected at
random in various villages fed from the feeder over a period of 6
months before and after the implementation of NJY, as extracted
from the sub-divisional DCB was analyzed. This also indicates the
increasing trend of consumption of metered installations. However,
it can be safely assessed that there is an increase of 25% to 30% in
metered energy consumption.
Unmetered consumption:
As compared with earlier period, there is a considerable increase in
the IP consumption post implementation of NJY. The total
unmetered consumption of IP sets in respect of the combined IP
feeders has shown an increasing trend as compared with the IP set
consumption before implementation of NJY. This is due to increase
in number of IP sets serviced under regularization and also due to
mix up of feeder loads during rearrangement of feeders envisaged
in the project. However, IP consumption, which was hitherto being
assessed based on assumptions, can now be measured more
accurately, as there is a total exclusive feeder with metering
facilities at station end, for calculating feeder-wise total daily and
monthly IP consumption.
Rate of failure of transformers:
After the implementation of NJY, the failure rate of transformers in
both the IP feeders as well as NJY feeders has reduced significantly
as compared to the failure rate of transformers before
implementation of NJY.
ccxvii
Better consumer satisfaction:
As per the opinion obtained from the consumers, in different
villages fed by NJY feeders, it is evident that the consumers are
happier with the better power supply conditions after introduction
of NJY.
Results of the socio economic survey carried out for the
beneficiaries of the NJY Project:
A survey was conducted on the effectiveness of the project by
obtaining opinion from a cross section of people in different
villages fed by NJY feeders the results are as follows. About 85% to
95% of the respondents have agreed on the following
improvements in availability of power 24X7, after implementation
of NJY.
Improvement in quality of power supply viz., less voltage
fluctuations, reduction in interruptions/ better tail end
voltages.
Improved standards of living.
Increase in level of literacy/education.
Improvement in basic amenities such as drinking water
supply, improved services in Primary Health Centers.
Development of small scale industries leading to local
employment and increased job opportunities.
Further, the BESCOM has ensured that the illegal tapping of NJY
feeders is curbed and wide publicity has been given through media,
highlighting the punishments laid down under the law for power theft
or illegal hooking. Paper notifications issued in this regard are enclosed
for the commission’s perusal.
ccxviii
The BESCOM will furnish the total IP set consumption monthly to the
Commission on the basis of data obtained from agricultural feeders’
energy meters.
Following are the observations pertaining to 36 NJY feeders covering
Davanagere and Kolar Circles:
Sl
No Parameter Before bifurcation
After bifurcation
NJY non-agri feeder
After bifurcation
agri feeder Conclusion
1 Total No. of
installations
Domestic lighting and
water supply – 48,720
numbers & IP Sets –
9,340 numbers
Domestic lighting and
water supply – 52,445
numbers
IP Sets – 11,150
numbers
Increase in installations
after bifurcation is
about 9.6%
2
Total
connected
load
12,60,500 KW
(Domestic and IP load
cannot be segregated
since the connected
load is based on
installed tranformer
capacity)
Domestic Lighting and
Water Supply
2,36,000 kW
IP Sets
11,85,000 kW
Increase in connected
load after bifurcation is
about 12.2%
3
Total energy
sent out from
substation
(kWh)
Domestic lighting and
water supply - 38,28,650
kWh &
IP Sets - 1,39,45,000 kWh
Domestic lighting and
water supply
56,57,600 kWh
IP Sets
92,65,500 kWh
Decrease in energy sent
out from the substations
after bifurcation is
about 16%
4
Total
metered
energy
consumption
(kWh)
Domestic lighting and
water supply - 31,57,600
kWh &
IP Sets -Realized about
88,30,000 kWh
50,06,300 kWh
It is assumed that
the entire energy
consumed by the
bifurcated Agri
feeders is assessed
and will be
realized from the
Govt. at a later
date
Increase in metered
energy consumption after
bifurcation is
about 19%
5
Average
technical
loss
17.5% 11.5%
Not possible to
evaluate AT&C for
a pure Agricultural
feeder since the
realization is an
assumed value of
100%
Reduction in technical loss
is
about 5.5%
6
Average
Commercial
loss
6% 5.5%
Reduction in commercial
loss is
about 0.5%
7
Aggregate
Technical
and
commercial
loss
23.50% 17% Reduction in AT&C loss is
about 6.5%
8 Transformer
Failure rate 14% 16% 17.5%
Even though the number
of failure of transformers
has reduced, the
percentage failure rate for
the bifurcated non-Agri
NJY feeder has increased
marginally by about 2%.
This may be attributable to
high service period of
about 20 to 22 hours a day
as compared to earlier 8 to
10 hours a day
9
Voltage
Regulation
(HT)
7% 4.50% 9.50%
Even with this improvement
for the non Agricultural NJY
feeder, the regulation is
above the acceptable
range of + 2.5% (upto
transformer) as per REC
ccxix
guidelines. This may be
attributable to higher line
lengths
10 Peak Load 140A to 200A about 45 A 120 to 135 A
This has led to improved
quality of power supply
viz., good tail end voltage
at the consumer end. This is
evident from the survey
carried out of the
consumers.
Following are the observations pertaining to Socio-Economic Survey
carried out for the Beneficiaries of NJY scheme (36 NJY feeders) of
Davanagere and Kolar Circles of BESCOM. A survey was carried out
covering 5 villages per feeder and 6 respondents per village:
Circle:
Davanagere No of
sub-divisions : 8 No of feeders for evaluation: 28
Circle:
Kolar No of
sub-divisions: 2 No of feeders for evaluation: 8
Sl No Parameter Response
1 Voltage Measured at consumer
premises
Within acceptable value
2 Is the respondent aware of NJY
scheme (Yes/ No)
No (80%)
However the surveyor has appraised the
respondent about the scheme
3 Availability of power 24x7 after NJY
(Yes/ No)
Yes (93%)
> 20 Hrs a Day
4
Improvement in Quality of power viz.
less voltage fluctuations after NJY (Yes
/ No)
Yes (86%)
5 Reduction in power Interruptions after
NJY (Yes / No)
Yes (73%)
6
Whether satisfied with quality and
duration of power supply for IP sets
(Yes/ No) if applicable
No (73%)
7
Respondents perception(Yes/No) on
whether implementation of NJY has
led to
a) Improvement in standard of living Yes (87%)
b) Increase in level of literacy/
education levels Yes (97%)
c) Improvement in basic ameneties
such as drinking water supply,
improved services in Primary Health
Centers
Yes (83%)
d) Development of Small Scale
Industries leading to local employment
and increased job opportunities
Yes (77%)
e) Reduction in migrant population to
urban areas
No (87%)
ccxx
8
Overall satisfaction level about the
project
(Good/ Average/Needs further
improvement)
Average
Commission’s Views:
The Commission notes that the BESCOM is yet to commission 10 feeders
in phase-2, whereas, it has commissioned all the 281 feeders taken up
under phase-1 long back. The progress achieved in implementing the
works under NJY phase-2 is not satisfactory, as it has taken one long year
to commission only 10 feeders out of 20 remaining feeders as at the end
of last year. The delay in implementation of NJY works by the BESCOM
has resulted in non-realization of envisaged benefits set out in the DPR
when the project was initiated.
BESCOM is hereby directed to commission the balance feeders’
expediously and to carry out the performance analysis of those feeders
to ensure that the objectives set out as per DPR are accomplished.
Further, the Commission, has noted that the BESCOM has carried out the
the performance analysis of feeders commissioned under NJY indicating
the benefits accrued to the system in terms of reduction in failures of
distribution transformers, improvement in tail-end voltage and
improvement in supply/reduction in interruptions and increase in
metered consumption. The analysis reveals that there is overall
improvement in supply condition after implementation of NJY besides
benifiting the consumers in rural area resulting in a positive socio-
economic impact. The analysis also reveals that the consumers are
happy post implementation of NJY as the number of hours of quality
power availability has increased.
The BESCOM is directed to expedite execution of NJY works under
phase-2 and report compliance thereon to the Commission. Further, the
BESCOM shall ensure that NJY feeders are not tapped illegally for
ccxxi
running IP sets which would defeat the very purpose of feeder
separation scheme undertaken at huge cost.
Further, it is noted that the BESCOM has already segregated almost all
the feeders taken up both under phase1&2 works and consequently
agricultural feeders are exclusive from rural loads and the energy
consumed by the IP sets could be more accurately measured at the 11
KV feeder level at the sub-stations after duly allowing for distribution
losses in 11 KV lines, distribution transformers and LT lines. The BESCOM is
directed to report every month, specific consumption and the total IP
sets consumption only on the basis of data from agricultural feeder
energy meters as per the formats prescribed by the Commission, before
15th May 2016.
The Commission reiterates its directive to the BESCOM to continue to
furnish feeder-wise IP set consumption based on feeder energy meter
data to the Commission every month in respect of agriculture feeders
segregated under NJY.
ix. Directive on Demand Side Management in Agriculture:
In view of the urgent need for conserving energy for the benefit of the
consumers in the State, the Commission had directed the BESCOM to
take up replacement of inefficient Irrigation Pumps with energy efficient
Pumps approved by the Bureau of Energy Efficiency, at least in one sub-
division in its jurisdiction and report compliance thereon.
Compliance by the BESCOM:
A brief note on solar water pumping system “Surya Raitha Scheme” is as
under:
Introduction:
ccxxii
In September 2014, the GoK envisaged a sustainable solution to the
problem of agricultural power by way of the Surya Raitha Scheme. This
scheme proposes to provide net metered solar water pumps and earn a
tariff for net energy exported thereby completely eliminating energy
usage for agriculture in the converted pumps.
Surya Raitha, pilot project:
The BESCOM has initiated to arrange power supply to 310 IP sets on
Harobele 11kV feeder of Kanakapura sub-division on a pilot basis. The
project provides for energizing the IP Sets with solar power by replacing
existing inefficient pump sets with efficient pumpsets and feed in excess
energy to the grid on net-metering basis. The excess energy fed into the
grid will be paid back to the farmers as per the tariff fixed by the KERC
resulting in additional income to the farmers apart from the income
earned through crops.
The scheme will be financed by a combination of farmer’s investment,
GoK subsidy, MNRE subsidy and BESCOM’s investment through soft loans
that will be repaid by the farmer through his net metering tariff revenues
in initial years. The net meting revenues will be deposited into an
ESCROW account and will be diverted first to service the loan corpus
fund as per the tariff of Rs.7.20 fixed by the KERC for SRTPV / small solar
projects, out of which Rs.1/- will be paid as generation based incentive
to farmers through farmer’s co-operative society and Rs. 0.20 will be paid
to the Co-operative Society for its maintenance.
Payback period is estimated as 10-12 years based on the solar
generation and utilization factor of the pumpset.
To enable a self-sufficient system and to recover the loan at the earliest,
the PV panel is oversized by 50 per cent, so that the additional power will
always feed power to the grid even while the solar water pumps are in
use. The feeder will be kept on from 6 am to 6 pm during day time for
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injecting excess energy to the grid. Typically 66 per cent of energy is fed
to the pump and 33 per cent to the grid.
The breakup cost of the project is as below:
Particulars
5 HP
capacity per
IP set
7.5 HP
capacity per
IP Set
Total cost for 310
pump programme
Total cost of system, Rs. 678342 908342 0
Number of pumps installed, Nos 223 87 310
GoK contribution, Rs. 58000 169000 Rs. 2.76 Cr
MNRE contribution, Rs. 162000 162000 Rs. 5.02 Cr
Interest free loan from BESCOM,
Rs.
408342 502342 Rs. 14.43 Cr
Upfront payment by farmer, Rs. 50000 75000 Rs. 1.77 Cr
Total cost of the project Rs. 23.98 Cr
Benefits from the net-metering programme for GoK:
Permanent stoppage of subsidized energy to agricultural customers
with an opportunity to deploy in other revenue generating
segments.
Energy saved from agricultural customers and delivered from net-
metering can be used to bridge energy deficit in the State.
Improved ground water ecology and agricultural output.
Benefits to the BESCOM:
Reduction in peak load and energy consumption.
Reduction of T &D losses.
Save on infrastructure cost.
Improvement in fiscal deficits.
Reduction in failure of DTCs.
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Save on high cost enrgy.
Benefits to farmers:
Increased agricultural productivity.
Improvement of water table.
Enhanced quality of irrigation.
Assured day time power supply.
Steady income from solar generation.
Source of income during drought years.
Progress of the Project:
Work award is issued on 07.09.2015 to M/s. Sun Edison Solar Power
India Pvt., Ltd., at a cost of Rs.19.5 Crores for Design, Supply, Testing,
Installation, Commissiong, Repair and Maintenance for a period of 10
years for 250 numbers of grid tied Solar PV based irrigation pump sets
on net metering basis under “Surya Raitha Scheme” on 11 kV
Haroblele F2 feeder in Kanakapura Taluk.
The BESCOM Board has approved for 310 IP sets at a cost of
Rs.23,98,25,112/-.
The Govt has released subsidy to an extent of Rs. 2.2 crore for 250
numbers of IP sets. The GoK will be requested for additional subsidy
for 60 IP sets and MNRE for sanctioning subsidy.
Co-operative Society in the name of “Surya Raitha Krushi Vidyuth
Balekedarara Sahakara Sangha Niyamitha” at Harobele is registered
on 19.08.2015.
Detailed survey has been conducted and work is in progress.
A demo has been installed at Harobele on 24th September, 2015, and
it is running successfully.
Street plays are conducted to create awareness among the farmers
about the scheme.
The work is expected to complete by 28.02.2016.
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Commission’s Views:
The Commission notes that the BESCOM is implementing DSM in
agriculture in Kanakapura taluk. It is also noted that the Surya-Raitha
scheme is in an advanced stage of completion. It is important to see that
all the balance works relating to this project are expedited so that the
work is completed in time and the farmers are able to avail the benefits
of this scheme. Further, the BESCOM should give emphasis on
implementation of DSM measures in the other parts of its jurisdiction in
order to conserve energy and also precious water for the benefit of
farmers. The BESCOM should focus its attention on implementation of DSM
measures by necessary co-ordination with all the stakeholders concerned
to arrive at an early agreement on crucial measurement and verification
methodology to move forward and scale up this programme in its entire
jurisdiction.
The Commission during its review meetings with ESCOMs held in the
Commission has been directing them to initiate DSM measures in any one
sub-division/taluk in order to assess the results of such measures before
scaling up in whole of its jurisdiction. The BESCOM is directed to expedite
the implementation of DSM measures in 11kV Harobele feeder in
Kanakapura taluk and report compliance thereon to the Commission
within three months from the date of this order.
x. Directive on Lifeline Supply to Un-Electrified households:
The Commission had directed the ESCOMs to prepare a detailed
and time bound action plan to provide electricity to all the un-
electrified Villages, Hamlets and Habitations in every taluk and to
every household therein. The action plan was required to spell out
the details of additional requirement of power, infrastructure and
manpower along with the shortest possible time frame (not
exceeding three years) for achieving the target in every taluk and
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district. The Commission had directed that the data of un-
electrified households could be obtained from the concerned
Gram Panchayaths and the action plan be prepared based on
the data of un-electrified households.
Compliance by the BESCOM:
Initially DPRs under RGGVY XII Plan was prepared for five districts namely,
Bangalore Rural, Kolar, Ramanagara, Chikkaballapura and Davanagere
districts, where 60,531 BPL households were identified for electrification.
The same has been approved by the REC and the work awards have
been issued to the successful bidders during the month of January, 2015.
For the remaining three districts i.e., Chitradurga, Tumkur and Bangalore
Urban (Anekal taluk), the DPRs for electrification of 76,309 BPL
households were prepared under RGGVY XII Plan and submitted to REC
for sanctioning. Since, the Govt. of India has introduced new scheme
called “Deena Dayal Upadyaya Grama Jyothi Yojana (DDUGJY)” in
which all the villages having population less than 100 shall also be
covered under the scheme.
Hence, the proposal for electrification of BPL households in RGGVY XII
plan was dropped and it was proposed to include the same under
DDUGJY scheme. DPRs for the above said three districts along with
remaining five districts (BPL households which are not covered under
RGGVY XII plan) as per the guidelines of DDUGJY have been prepared
for electrification of 1,06,472 households and submitted to REC for
acceptance. After final acceptance of supplementary DPRs by
competent authority of REC, the work will be awarded.
Physical progress of electrification of BPL households under RGGVY XII
plan is as follows:
Sl.
No. Name of District
No. of BPL
households
identified for
electrification under
Month wise Progress
Total
progress
Progress
in % July-15 Aug-15 Sep-15 Oct-15 Nov-15
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RGGVY XII Plan
1 Bangalore Rural 6167 157 485 923 11 574 2150 34.86%
2 Davanagere 21294 1256 907 2455 446 3436 8500 39.92%
3 Kolar 13041 902 1653 1549 759 1511 6374 48.88%
4 Chikkaballapura 15460 1436 1536 2564 1438 653 7627 49.33%
5 Ramanagara 4569 1319 1056 1275 581 1069 5300 116.00%
Total 60531 5070 5637 8766 3235 7243 29951 49.48%
As per REC guidelines, the work shall be completed within 24 months
from the date of issue of work award to the Agency. The BESCOM is
committed to complete the project within stipulated time fixed by the
REC in all aspects and the monthly progress will be submitted to the
Commission hereafter.
Further, M/s REC has sanctioned and allocated Rs.1,754.54 Crores for all
the ESCOMs in Karnataka, as against the proposal submitted by the
ESCOMS for Rs.4,947 Crores. As per the sanction, the cost for RE
component and system strengthening work was reduced whereas, for
other works complete sanctioning is given, as per the proposal
submitted.
Further, the Additional Chief Secretary, Energy Department, GoK has
given the revised allocation for DDUGJY sanctioned projects. The
Executive Director, REC, New Delhi, is requested by the BESCOM to re-
allocate / re-appropriate the funds for varying from one component to
another as detailed under:
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Sl.
No. Name of the Work
DPRs
submitted
by
BESCOM
DPRs
sanctioned
by M/s
REC
Revised
allocation
by the
GoK
Re-
allocation
rquestted
1 Feeder separation (DTCs) in
Rs crore 88.71 88.71 88.71 0
2
Rural Electrification
(electrification BPL
households including creation
of infrastructure) in Rs crore
95.94 7.75
41.86
95.94
3 System strengthening in Rs
crores 193.54 15.55 86.79
4 SAGY in Rs crore 38.51 38.81 38.51 38.51
5 Metering in Rs crore 14.12 14.12 66.28 14.12
Total 430.82 164.64 235.36 235.36
DPRs are required to be re-cast duly conducting the field survey by PMA
and the same is to be uploaded on the DDUGJY website, which is in
progress.
After final acceptance of supplementary DPRs by competent authority
of REC, the tender will be floated.
Commission’s Views:
The Commission notes that only 49.48 per cent progress is achieved in
electrification of BPL households under RGGVY XII plan by the BESCOM.
The BESCOM needs to expedite electrification of BPL households with the
seriousness this matter deserves. The electrification of households has
remained stagnant for the last many years leaving vast numbers of
households in the remote areas remain without electricity. The
programme should be implemented within in a time frame to ensure that
the people are provided with the basic need of electricity. The
Commission, while reviewing the status of compliance of its directives
during the ESCOMs’ Review meetings, has been stressing upon ESCOMs
to initiate necessary action to provide electricity to the un-electrified
households with funding arrangement by RGGVY or any other source.
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The BESCOM shall come out with an action plan to implement the
directive of the Commission for providing electricity to the un-
electrifiedhouseholds in its jurisdiction and submit compliance/progress
achieved monthly to the Commission.
Further, the Commission concerned with the slow pace of progress of this
programme, in its previous Tariff Order had directed the BESCOM to
cover electrification of 5 per cent of the total identified un-electrified
households every month beginning from April, 2015 so as to complete
this programme in about twenty months. There is not much progress in
these aspects. The BESCOM is directed to expedite action to provide
electricity to the unelectrified households covering all the remaining
households within the targeted time and report compliance to the
Commission regarding the monthly progress achieved from May, 2016
onwards. In the event of non-compliance, the Commission may be
constrained to initiate penalty proceedings under section 142 of the
Electricity Act, 2003.
xi. Directive on sub-division as Strategic Business Units (SBU):
The present organizational set up of the ESCOMs at the field level
appears to be mainly oriented to maintenance of power supply without
a corresponding emphasis on realization of revenue. This has resulted in
a serious mismatch between the power supplied, expenditure incurred
and the revenue realized in many cases. The continued viability of the
ESCOMs urgently calls for a change of approach in this regard, so that
the field level functionaries are made accountable for ensuring
realization of revenues corresponding to the energy supplied in their
jurisdiction.
The Commission had therefore directed the BESCOM to introduce the
system of Cost-Revenue Centre Oriented sub-divisions at least in two
divisions in its operational area and report results of the experiment to
the Commission.
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Compliance by the BESCOM:
For effective implementation of SBU as per concept paper of consultants
contains several measures such as
Autonomy of operations
Develop and Manage network
Customer relationship management
Supporting systems
Sustainability
For putting the concept of SBU in place, functional autonomy is very vital
but practically deriving the functional independency on Chandapura
and Indiranagar is proving non-functional since the present situation and
system is not ready of carving out functionalities of financial autonomy
and operational autonomy distinctively confining to those two divisional
boundaries only as it involves the following autonomy:
Financial independence
Sustainability and ability of operations
Time block wise data from SLDC for understanding the load
pattern, duration of load etc., across feeders
Network status – identifying congestion, bottlenecks, areas of
growth in demand, deterioration of older assets in the network
(emergency, short term and long term interventions required),
input and DTC metering, consumer metering, requirement of
capex and the benefit-cost analysis for such interventions
Full consumer database including indexing
Customer charters in place and means of implementing the same
Support systems – employees, IT etc.
Cash flow monitoring methodology
Overheads
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As can be seen above, in the present scenario, all the above activities
are centrally managed by the Corporate level departments manning
those major activities of Revenue, Finance, Borrowings, transfer of fund
on the Finance side and also various schemes / projects involved for
developing infrastructure for technical maintenance and efficiency is
interdependent on various factors and managed by Corporate Office
only. Delegating powers and responsibilities to those two divisional
office Managers may not suffice the needs and prerequisites to run
the division independently on all core aspects. Also, the autonomy
involves the following sub activities.
Autonomy of operations
Ring fencing of SBU area to understand the nature of business
Planning and forecasting of demand
Delegated authority for actual power scheduling and drawing in a
particular time block or day or month
Monitor the sales, revenue and collection
Powers to manage short term liquidity issues by borrowing
from HO or others
Develop and manage network
Planning for consumer demand
Identifying the required capex and source of financing
Procurement of capex – turnkey or partial turnkey execution
Customer relationship management
Acquisition of new customers ensuring adherence to ‘supply all
consumers’ in the area of supply
Setting service standards and achieving the same
Retention of existing customers i.e. warding of OA consumers
leaving the grid
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Supporting systems
Human Resources
Mapping and matching objective of organization and skills of
employees
Recruitment and training
Methods to incentivize and improve productivity
Sustainability
Identify clearly the cost and revenue chain
Monitoring viability of operations
In the present system, all the above are interdependent and Central
office is dealing with major aspects of power purchase, subsidy
accounting and borrowings and dissection of these major expenses
which involves high cost purchase / short term purchases etc, also
dissection of subsidy / grants / capex and borrowing agaist this two
divisions may not happen logically unless and otherwise system is in
place. Hence, SBU conceptualizatation is dispensed with.
Commission’s Views:
The Commission notes that, the ESCOMs have expressed their difficulty in
introduction of SBU concept in their O & M divisions / sub divisions due to
implementation issues in the field. The Commission recongises the
problems associated with implementation of SBU concept. As an
alterantive, the Commission had instituted a study to make field
formations of the ESCOMs financially accountable without any
modification in their existing administrative set up. The Commission has
forwarded a report prepared by the consultants M/s PWC regarding
implementation on Financial Management Framework for distribution
utilities to take further action to implement a model suggested by the
consultant, in their jurisdiction to bring in accountability on the
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performance of the divisions / sub-divisions in relation to the quantum of
energy received, sold and its cost so that they conduct their business on
commercial principles.
The BESCOM is therefore, directed to implement this financial
management framework model and report compliance thereon within
three months from the date of issue of this Order.
xii. Directive on Prevention of Electrical Accidents:
The directive was as follows:
“The Commission has reviewed the electrical accidents that have
taken place in the State during the year 2014-15 and with regret
noted that as many as 564 people and 514 animals have died
due to these accidents.
From the analysis, it is seen that the major causes of these
accidents are due to snapping of LT/HT lines, accidental contact
with live LT/HT/EHT lines, hanging live wires around the electric
poles /transformers etc., in the streets posing great danger to
human lives.
Having considered the above matter, the Commission hereby
directs the BESCOM to prepare an action plan to effect
improvements in its distribution network and implement safety
measures to prevent electrical accidents. A detailed division wise
action plan shall be submitted by the BESCOM to the
Commission”.
Compliance by the BESCOM:
1. Hazardous locations are identified and measures are taken to rectify
the same on top priority.
2. LT spacers have been procured and are being installed wherever
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required.
3. Tenders have been invited to procure new safety materials like safety
shoes, helmets with electronic induction tester, safety belts, fibre
ladder and safety goggles to all the field staff.
4. Safety tools like safety gloves, earthing rods, safety helmets, belts,
cutting pliers, LT tester etc., have already been already been
provided to all field staff.
5. Field staff are directed to rectify the dangling wires on
transformers/poles, raise the aerial fuse boards to safe height, prune
the trees along the HT/LT lines, clean the transformer/ RMU
surroundings, maintain feeder pillar boxes, LTD boxes etc.
6. Instructions are issued to follow the safety protocol at work.
7. On every Monday, the section officer conducts a safety meeting
before starting the work and Safety Mantra to all field staff is being
preached.
8. Field staff is directed to sign the checklist provided to them before
attending to any kind of work. It is also the duty of the concerned
section officer to check whether the staff has carried all the safety
equipment, read the check list and signed.
9 The number of hazardous installations identified and rectified in FY16
up to November, 2015, is shown below:
Number of hazardous installations identified for FY16: 2100
Number of hazardous installations rectified during October, 2015:
242
Number of hazardous installations rectified during November, 2015:
353
Balance number of hazardous installations to be rectified: 1,400
Commission’s Views:
The Commission observes that despite the BESCOM taking various
remedial measures including rectification of hazardous installations in its
network, the number of fatal electrical accidents involving both human
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and livestock has only increased which is of a serious concern. This
indicates that identification and rectification of all hazardous
installations is not completed. The BESCOM should make more
concerted efforts for identification and rectification of all the hazardous
installations prevailing in the distribution system particularly in densely
populated areas & public places. The BESCOM also needs to take up
with the concerned local bodies for rectification of the hazardous
streetlight installations and other electrical works under their control to
ensure safety of the public. It also necessary that the BESCOM creates
awareness through visual/print media continuously about safety aspects
among public to ensure that the attention on safety aspects is
maintained.
The Commission, during the Review meetings held with the ESCOMs has
been prompting the ESCOMs to take up periodical preventive
maintenance works, install LT protection to distribution transformers,
conduct regular awareness programme for public on electrical safety
aspects in use of electricity and also ensure use of safety tools and
tackles by the field staff besides imparting necessary training to the field
staff at regular intervals. The BESCOM shall take effective steps to
achieve these.
Further, the BESCOM shall adhere to the best construction practices as
per the standards on construction/expansion of the distribution network
so that no maintenance is required for such network for a reasonably
long period of time. The BESCOM shall also conduct safety audit and
carryout preventive maintenance works as per schedule to keep the
network equipment in healthy condition.
The Commission has already forworded the Safety Technical Manual
prepared by a sub-Committee comprising of experts from the Advisory
Committee constituted by the Commission which should serve as a
useful guide for the field engineers to record all the technical
deficiencies prevalent in the distribution network and enable them to
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take remedial action on the basis of the audit. In the Safety Technical
Manual, detailed account of the steps to be taken on each element of
the distribution system is enumerated which would help the field
engineer in attending to the defects. The ESCOMs are required to
circulate Safety Technical Manual among their field staff for necessary
guidance and also to continuously monitor the implementation of the
suggestions / recommendations contained in the reports.
The Commission therefore reiterates its directive that the BESCOM shall
continue to take necessary measures to identify and rectify all the
hazardous locations/installations prevalent in its distribution system and to
provide LT protection to distribution transformers under an action plan to
prevent and reduce the number of fatal electrical accidents occurring in
the distribution system. The compliance regarding the same shall be
submitted to the Commission every month regularly.
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APPENDIX-1
Statement showing the objection of the consumers/public, BESCOM’s response and the
Commission’s Views.
1. Objections relating to Tariff Issues:
Objections Replies by BESCOM 1. The application is not maintainable as it is not
filed 120 days before the commencement of
the next financial year as required under the
MYT Regulations.
The BESCOM was compelled to
seek extension of time limit due
to un-availability of accurate
power purchase details. The
BESCOM has submitted its filing
within the extended time
allowed by the Commission.
Commission's Views: BESCOM has filed its petition for truing-up for FY15 and
determination of Annual Revenue Requirement for FY17, FY18 and FY19 on 15th
December, 2015, within the time limit extended by the Commission. The Hon’ble
Appellate Tribunal for Electricity (ATE), in the Case reported in 2010 ELR (APTEL)
0175 has held that “if the Licensee is unable to file ARR petition due to some
reasons, it will not be proper to say that the application has to be rejected. What
could be done in such a situation is that the carrying cost can be denied and not
the revenue recoverable for the period of delay”. In the present case, the
revenue requirement sought is from 1st April, 2016 up to 31st March 2019, and
therefore, the time taken by BESCOM for filing the application will not adversely
affect the consumers’ interest and hence, the petition is maintainable.
2. Objectors' views should be considered while
issuing the Tariff Order.
The Commission is regularly
conducting Public hearing
before issuing the Tariff Order
and uploading it on its website.
Commission's Views: Section 64(3) of the Electricity Act, 2003 mandates that a
State Commission shall issue a Tariff Order after considering all suggestions and
objections received from the public. Accordingly, the Commission had directed
the BESCOM to publish the summary of the Revised ARR and Tariff proposals in the
newspapers calling for objections, if any, from interested persons. The BESCOM
was also directed to communicate its replies to the objections raised to the
objectors. Further, the Commission had invited interested persons to submit their
objections in person, during the public hearing held on 26th February, 2016 in the
Court Hall of the Commission in Bengaluru. Their objections were heard and the
BESCOM representative was given an opportunity to give replies based on the
above proceedings and its decision on the issues raise, Commission is issuing the
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Tariff Order.
3. The proposed hike of 102 paise per unit is
objectionable. Tariff hike of 102 paise per
unit has been sought for all categories
except BJ/KJ and IP sets.
The main reason for revision in
tariff is that, the approved
average rate of realisation is not
being realised due to change in
consumer mix as well as HT
consumers leaving the grid for
Open Access. The average
power purchase cost is Rs.3.97
per unit as against the
approved purchase cost of
Rs.3.90 per unit for FY15. Tariff
hike of 102 paise per unit has
been sought for all categories
including BJ/KJ and IP sets.
Commission's Views: As required under the Electricity Act, 2003, after examining
all aspects, the Commission has allowed an appropriate tariff increase, striking a
balance between the interest of the ESCOMs and the consumers.
4. The tariff is higher in Karnataka as
compared to other States, inspite of major
generation in Karnataka is through hydel.
Tariff of other States cannot be
compared with that of
Karnataka, as each State has its
own energy profile and energy
consumption. Different states
adopt different methods of
charging consumers. However,
it is mandatory to all the
DISCOMs to file their ARR before
the Commission for tariff
determination.
Commission’s Views: The Reply furnished by the BESCOM is acceptable. 5. As per the Tariff Policy the tariff should be
within +20% of the Cost to Serve.
Accordingly the tariff of HT2(a) should be
brought down by 50%.
Hon'ble ATE in Appeal
No.42/2014, directed all the
State Commissions to indicate
category-wise cross-subsidy with
reference to voltage-wise cost
of supply. This is only to
transparently indicate the levels
of cross subsidy in respect of
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different categories of
consumers. However, for
industrial consumers, the cross
subsidy level of +20% of Average
Cost of Supply is already
achieved in the earlier Tariff
Orders. BESCOM has furnished
the data on voltage wise cross-
subsidy, in its petition for all
categories of consumers.
Commission's Views: As directed by the Hon’ble ATE, the Commission has
endeavored to reduce the cross subsidy gradually which is reflected in the
current order as well. The voltage wise cross subsidy levels have also been
indicated in the tariff order, as directed by the Hon’ble ATE.
6. BESCOM has failed to achieve designing of
tariff at ± 20 % of the average cost of
supply. BESCOM is cross-subsidising
Industrial consumers for the power used by
the IP sets, though the Government is
committed to provide power to IP sets.
Section 61 of the Electricity Act,
2003 emphasises lower tariff for
poorer sections of the society. In
accordance with the Tariff
Policy, the tariff for IP sets falls
within +20% of the average cost
of supply. The Commission has
approved the industrial rate
within the range of +20% of
average cost of supply. Actual
realisation of cross-subsidy from
the industrial sector is between
11% to 13%.
Commission's Views: The matter is appropriately dealt in the Tariff Order 7. The deficit of Rs.722.47 Crores for FY15
should not be considered for truing-up and
it should be removed from the proposed
deficit for FY17.
There is a gap of Rs.722 Crores
for FY15 as against the
approved figures. Average
power purchase cost is. Rs.3.97
per unit as against approved
power purchase cost of Rs.3.90
per unit for FY15. For FY15, the
Commission has approved Rs.16
Crores as regulatory asset and
carrying cost of Rs.138 Crores, at
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the rate of 12% on the
regulatory asset is also
considered. This amount is also
part of Rs.722 Crores.
Commission’s Views: The Commission has suitably dealt with this issue in this Order.
8. Revenue receipts from the sale of power to
the tune of Rs.13479.80 Crores as submitted
in its 'Notes to the financial Statements'
should be considered as against
Rs.13075.20 Crores, as proposed for the
purpose of truing-up for FY15.
Expenditure is not the main
cause for increase in the deficit
year on year, but it is the
receipts. The average realization
works out to Rs.5.36 per unit as
against the approved tariff of
Rs.5.48 per unit. It is placed
before the Commission, that
owing to apparent errors in the
accounts, it is not right to
consider the receipts as per final
accounts of the BESCOM.
Commission’s Views: The Commission has appropriately dealt with this issue in this
Order. 9. Regulatory asset of Rs.541.97 Crores for
FY13, should not be recovered after a gap
of four years in FY17. Carrying cost
pertaining to the part of amount to be
recovered from the consumers should be
allowed as against a carrying cost on the
total regulatory asset for FY13.
The Regulatory asset was
Rs.1151.65 Crores for FY13, out of
which Rs.524.53 Crores was to
be collected from Government
of Karnataka as additional
subsidy. The balance is Rs.627.13
Crores was to be passed in the
tariff for FY15. But, Commission
has considered only Rs.16 Crores
for FY15 and passed on Rs.611
Crores as regulatory asset to be
recovered from tariff during FY16
and FY17 with 12% carrying cost.
On both the counts deficit of
Rs.1151.65 Crores for FY13 has
not been realized up to FY16.
Hence, BESCOM has considered
the carrying cost of Rs.138.2
Crores for FY15 at the rate of
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12% on Rs.1151.65 Crores. There
is a gap of Rs.722.5 Crores for
FY15, since the average power
purchase cost is Rs.3.97 per unit
as against the approved
purchase cost of Rs.3.90 per
unit.
Commission’s Views: The Commission in its Order dated 12th May, 2014, decided
to treat Rs.627.27 Crores, out of a total deficit of Rs.1151.65 Crores for FY13, as
Regulatory Asset. The Commission has allowed only Rs.16 Crores to be recovered
in FY15 and passed on Rs.611 Crores as regulatory asset to be recovered from
tariff during FY16 and FY17. As per the Orders of the Hon’ble ATE in OP No.1/2011
dated 11.11.2011, the Regulatory Asset can be carried forward for a maximum of
three years. After undertaking the Annual Performance Review (APR) for FY15,
based on audited accounts, the net deficit has been carried forward to the ARR
of FY17 and its recovering has been appropriately considered.
10. An additional subsidy of Rs.131.74 Crores
should be borne by the State Government for
additional quantum of 247.57 MU supplied to
IP Sets and BJ/KJ Consumers at an average
cost of supply of Rs.5.32 per unit for FY15. The
BESCOM has not indicated how much arrears
are to be recovered from local bodies.
The GOK is yet to release the
additional subsidy which is
approved by the Commission.
The receivable from Urban Local
Bodies and Zilla Panchayat is to
the tune of Rs.2330.75 Crores
The deficit of Rs.722 Crores is
arrived after considering this
amount as a part of revenue
demand. Hence, recovery of
arrears from local bodies
mitigating the revenue gap for
FY15 is not justifiable.
Commission’s Views: The reply furnished by the BESCOM is acceptable. However,
BESCOM shall endeavour to recover the arrears of subsidy and other receivables
from the Government and others to mitigate cash flow problems and to reduce
the cost of borrowing to meet the deficit. The Commission ensures that such cost
does not exceed the normative expenditure approved by it.
11. The BESCOM should furnish subsidy allocation
letters. The BESCOM has not indicated the
details of subsidy given by the GoK. The
The BESCOM is claiming subsidy
in advance, quarterly. The
Subsidy allocation letter is not
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Subsidy paid to KPCL is also not indicated.
Subsidies are not recovered by proper
persuasion with the Government. There is
discrepancy in the subsidy funds released to
BESCOM from the Government. Further, under
BJ/KJ category, the GoK has paid a subsidy of
Rs.1118.94 Crores as against the dues of
Rs.1400.23 Crores Thus, the amount of subsidy
short received from GoK is Rs.281.29 Crores
required as bills towards supply
of power to BJ/KJ and IP sets are
raised on quarterly basis and the
Government is releasing the
amount accordingly. The GOK is
reimbursing the Commission
determined tariff (CDT) to those
it wants to provide electricity at
its cost. Since the accounts
drawn are under accrual basis,
the depiction of payment by
the GoK either directly or by
clearing the bills of KPCL as
adjustment does not arise.
Subsidies are being accounted
on accrual basis not on cash
basis. The subsidy amount of
Rs.41.4 Crores for BJ/KJ and
Rs.1358.83 Crores for IP sets have
been demanded by the
BESCOM and the same has
been considered as receipt for
truing up for FY15. Hence, the
question of subsidy short
received does not arise.
Commission’s Views: The accumulation of arrears from Urban Local Bodies and
Zilla Panchayat does not affect the working results of the Company. However,
timely recovery of these arrears will result in better cash flows, enabling the
Company to discharge its current liabilities. Nevertheless, the Commission notes
with concern raised by the objectors and directs the BESCOM to pursue the
matter with the Government to recover the arrears at the earliest.
12. The expenditure estimated for FY17 is
disproportionate. The BESCOM has estimated
the expenditures for the coming years i.e.,
FY17 to FY19 based on Tariff Order issued in
2013 instead of considering the Commission's
Tariff Order 2014. Hence, the estimations are
Commission has fixed Rs.542
Crores and its interest Rs.127.90
Crores as regulatory asset for
FY17 and it is estimated around
9.09%. As per the MYT
Regulations of Commission, the
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invalid. estimated expenditure in the
coming years i.e., FY17 to FY19
are made by considering the
estimated expenditure of FY16
as a base year and also based
on previous two years actual
expenditures as per audited
accounts. Therefore, objector’s
statement is not correct.
Commission’s Views: The Commission has appropriately dealt with this issue in this
Order. 13. Revenue from the sale of power works out to
be Rs.14917.92 Crores as against Rs.14746.46
Crores. The tariff revision for FY16 is not
reflected in the revenue computation for FY16
and FY17.
The main reason for not
achieving the approved level of
average rate is due to change
in the slab-wise consumption,
introduction or deletion of new
tariff category, reclassification,
merger of tariff and not
achieving the targeted sales.
There is no significant impact on
revenue due to revision of tariff
for FY16.
Commission’s Views: The existing revenue against the approved sales for FY17, is
considered by the Commission, based on the tariff for FY16. The revenue
computation for the FY16 would be necessary for the APR of FY16 and not now.
14. Industrial consumers account for about 28% of
the total energy sales and contribute about
40% of the total revenue.
Actual industrial consumption is
decreasing year on year and for
FY15, it is at 24%. Reasons have
been explained in the tariff
application.
Commission’s Views: The Commission determines the tariff for different categories
of consumers keeping in view the norms specified in the Electricity Act, 2003, the
policies and the Regulations issued thereunder.
15. The BESCOM has purchased1133.63 MU less
energy as against the approved figures
amounting to Rs. 232.54 Crores, which should
be deleted from its deficit for FY15.
The BESCOM was not supplied
with the approved level of
energy from KPCL thermal, CGS
and major IPPs. Thus, the
company had to purchase
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more quantum of short-term
power which resulted in
increase in power purchase cost
for FY15.
Commission’s Views: The reply furnished by the BESCOM is acceptable. 16. The average power purchase prices from
various sources projected for FY17 does not
correspond to the recent decreasing trends in
fuel prices. Linear increase in the power
purchase cost has been considered without
accounting for the distinct nature of fixed and
variable charges. The BESCOM has erred in
considering the capacity charges from the
CGS plants based on the tariff petitions filed by
them before the CERC for the control period
2014-19.
Thermal source of power
purchase constitutes 52% of the
total purchase and rest is from
other sources. Hence, the
average power purchase cost is
not only dependent on the
price of the coal but varies on
the source wise energy mix
purchased. Further, analysis of
power purchase cost from
different sources shows that
there is a consistent increase in
the cost from all sources except
for hydel. Increase in capacity
charges is due to commissioning
of new power projects, which
are in pipe-line such as, BTPS-
Unit-3, Yermarus 1 and 2,
Damodar Valley Corporation &
other projects.
Commission’s Views: The BESCOM’s reply is acceptable. 17. An average increase in the range of 13.47% to
18.18% has been considered for KPCL and
CGS stations over the values of FY15 for
projecting for FY17. Prudence check should be
done on projected power purchase cost for
FY17.
Increase in power purchase cost
is attributed to annual increase
of 7% to 8% in inflation rate and
increase in interest rate. Besides,
loyalty charges, secondary
energy charges, incentives are
considered for the projection.
The projected power purchase
cost works out to 3.10% increase
for two years resulting in annual
growth rate of 1.55%.
Commission’s Views: The payment for power purchase is based on the
ccxlv
Regulations issued by the CERC and also by the Commission. They are based on
norms stipulated under the said Regulations.
18. The BESCOM should enter into long-term PPA
with the generators through competitive
bidding, instead of continuing with
short/medium term PP agreements.
Short-term power purchase is
done through tendering and the
price is discovered. The BESCOM
is purchasing short term power
after due approval by the KERC.
Power purchase from August
2013 to June 2016 is discovered
through tender process at
Rs.4.85 per unit in the case of
Global Energy.
Commission's views: The reply furnished by BESCOM does not answer the issues
raised. The BESCOM should through PCKL make efforts for entering into a long-
term PPAs through competitive bidding to reduce its power purchase costs.
19. High cost energy has been allocated to the
BESCOM
The BESCOM is consuming 51%
of the State consumption to
provide continuous power
supply to its consumers.
Accordingly, the consumers of
the BESCOM has to pay the
purchase cost of power
Commission's views: The power allocation to the ESCOMs is being done by the
GoK, who is the owner of the ESCOMs. With a large and varied consumer mix, the
BESCOM is able to absorb the high cost power allocated to it. There is no case for
any intervention by the Commission.
20. The BESCOM has submitted an increase in
transmission cost by Rs.10.05 Crores.
The increase in transmission cost
by Rs.10.05 Crores is due to
transmission availability
incentive.
Commission’s Views: The matter is appropriately dealt in KPTCL’s Order. 21. BESCOM has incurred capital expenditure of
Rs.1474.58 Crores as against the approved
capital expenditure of Rs.763 Crores
The BESCOM has incurred
excess capital expenditure of
Rs.234.42 Crores towards
implementation of E&I works,
Ganga kalyana and drinking
water supply works, local
planning works and
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replacement of faulty
transformers by new
transformers. Further, the
BESCOM has incurred excess
capital expenditure of Rs.477.17
Crores towards providing
infrastructure to un-authorised IP
sets, Niranthara Jyothi Yojana,
implementation of DAS
programme, HVDS system and
RGGVY programme. Capital
expenditure for FY15 was
planned during FY13 and due to
Government initiative to
complete providing
infrastructure to unauthorised IP
sets and Niranthara Jyoti Yojana
in a faster pace, more amount
was incurred towards the said
works.
Commission’s Views: Though the BESCOM has explained the reasons for incurring
capex over and above the approved amounts, there should be prior approval for
the capex being incurred exceeding the approved capex as it has an impact on
determination of tariff. Commission is subjecting capex to prudence check to
ensure that is for improving the delivery of service to consumers by BESCOM using
more efficient system.
22. The interest and depreciation incurred on the
excess capital expenditure should not be
passed on to the consumers.
Not Replied
Commission’s Views: The BESCOM has submitted the reasons for the variations in
actual Capex as against approved figures in its reply to the Commission’s
preliminary observations on the BESCOM’s tariff application. Further, the
Commission is conducting prudence check of the capex before allowing interest
and depreciation on the capitalized assets so as to avoid passing of any
unnecessary expenditure to the consumers thereon tariff.
23. The BESCOM should work out realistic capital
investment budget and should execute the
Not Replied
ccxlvii
projects timely. The BESCOM should seek prior
approval of the Commission in case of
deviations.
Commission’s Views: The BESCOM has submitted the reasons for the variations in
actual Capex as against approved figures in its reply to the Commission’s
preliminary observations on the BESCOM’s Tariff application. Further, the
Commission is conducting prudence check of the capex before allowing interest
and depreciation on the capitalized assets so as avoid passing if any unnecessary
expenditure to the consumers through tariff.
24. Loan addition of Rs.1245 Crores as proposed
for FY17 is more than the proposed capital
expenditure during the same year.
For FY17, capex planned is
Rs.1529 and borrowing is
planned at 70% which works out
to Rs.1245 Crores.
Commission’s Views: This issue has been appropriately dealt with in this Tariff
Order. 25. The BESCOM has considered an interest rate of
12.50% as against an interest rate of 11.75%
while computing the interest on new loans.
Further, the interest during construction has
been considered on an ad-hoc basis. Interest
capitalised as well as expenses capitalised
ought to be linked with the capital
expenditure being undertaken.
Error in computation at 12.5% is
regretted. The capital plan
envisaged is mainly dependent
on the loans and interest subsidy
provided by the Central/State
Government. The loan
sanctions are linked with
conditions. Hence, interest
during construction is provided
on ad-hoc basis.
Commission’s Views: This issue has been appropriately dealt with in this Tariff
Order. 26. Increase in long-term borrowing and other
long term liabilities will result in huge interest
liabilities.
Long term borrowings have
increased due to increase in the
capital expenditure.
Commission’s Views: The BESCOM’s reply is acceptable. 27. The BESCOM has claimed the Interest on
Working Capital on normative basis, without
sharing any gains. Further, the consumer
security deposit has been utilised as working
capital and thus, the consumers have been
deprived of a reduction in the ARR through
interest earning on the security deposits. The
security deposits should be subtracted from
Regulations 3.11.2 of the KERC
MYT Regulations, specifies the
rate of Interest on Working
Capital (IoWC) and the
amended version specifies the
sharing of savings on IoWC.
Estimations are proposed
considering the normative IoWC
ccxlviii
the working capital being allowed while
computing Interest on Working Capital.
and the BESCOM is yet to
recover from the accumulated
losses. The proposal is made as
per the norms and any sharing
of saving is the outcome of
truing up exercise.
Commission's views: The Commission is allowing the interest on working capital, as
per the norms prescribed in the MYT Regulations, which take into account the
issue raised by the objector.
28. The BESCOM should clarify as to why interest
on consumers' deposit is to be recovered
through tariff.
As per the Electricity Act 2003,
security provided by the
Consumer is eligible for interest
as per the Commissions
approved rates. Commission
approved the rate of interest
payable on this deposit at the
Bank rates of RBI existing at the
beginning of the financial year.
Commission's Views: Section 47(4) of the Electricity Act 2003 specifies that the
distribution licensee shall pay interest equivalent to the bank rate or more, as
may be specified by the concerned State Commission on the security. The
Commission has been consistently allowing interest paid on consumers' deposit
as per the existing Regulations. Any prudent expenditure incurred by a
distribution licensee in the course of its business has to be passed on to the
consumers through ARR.
29. The Commission is requested to consider
Interest on Security Deposits at 7.75% as
published by the RBI on its website as against
9% as claimed by BESCOM for FY17 in
consonance with the Clause 3.1 of the KERC
(Interest on Security Deposit) Regulations, 2005
which provides for considering the bank rate
as on 1st April of the relevant financial year.
Section 47 (4) of the Act, 2003
specifies payment of interest
equivalent to the bank rate or
more. Hence the existing rate
proposed for deposit is 9%.
However, rate of interest will be
paid as per prevailing bank rate
at the beginning of the financial
year.
Commission's Views: The interest on security deposit of consumers is being
allowed as per the provisions of the Electricity Act, 2003 and the Regulations
issued by the Commission.
ccxlix
30. The BESCOM is not giving Interest on
consumer security deposit quarterly. Electricity
bill of the BESCOM does not indicate the
amount of deposit paid by consumers. The
BESCOM is not giving interest as per bank rate
as notified by the RBI.
BESCOM is paying Interest on
security deposit in accordance
with the KERC (Interest on
Security Deposit) Regulations
2005. The BESCOM is paying
Interest on Security Deposit at
the bank rate prevailing as on
1st April of the financial year for
which interest is due.
Commission’s Views: The BESCOM’s reply is acceptable. However, the BESCOM
shall examine the feasibility of indicating the amount of deposit in the bill.
31. Huge receivables outstanding from different
categories of consumers, KPCL and other
ESCOMs indicate lower collection efficiency
and reduced cash flow. The BESCOM has not
furnished any details regarding their collection
efficiency
For FY-15, collection efficiency is
97.99%. There is a 2.4% increase
in collection efficiency over the
previous year as stated at page
3 of the BESCOM filing. Formats
D-18 and D-18A consists of
details pertaining to demand,
collection and efficiency for
FY15.
Commission’s Views: Though the collection efficiency is good, the recovery of
arrears and the recovery of subsidy and Government dues should be given
priority by pursuing the matter with the respective departments of the
Government.
32. Losses of Rs.14.10 Crores relating to Fixed
Assets should not be loaded on to the
consumers.
Assets created will be
depreciated at 90% of its value
over the period of life of asset.
Residual value is only 10%. Any
asset after completion of its life
will be asset of the consumer.
Hence, any gain or loss out of
sale proceedings is attributable
to the consumers. For FY15,
Rs.14.10 Crores is shown as net
loss.
Commission’s Views: The matter is appropriately dealt in the Tariff Order. 33. Any short term/medium term power purchase
over and above the approved quantum and
Reduction of availability from
the designated source resulted
ccl
purchased at rates exceeding the ceiling rate
should be disallowed. The BESCOM has
projected short-term energy procurement of
442.34MU at 508 paise per unit and 248.88 MU
at 485 paise/unit for FY17-19. Whereas the
short-term energy is available at a cheaper
price at the exchanges.
in increase in short term
procurement. Short-term power
purchase is done through
tendering after due approval
from KERC and the price is
discovered. Power purchase
from August 2013 to June 2016 is
discovered through tender
process at Rs.4.85 per unit in
case of Global Energy. For
projections, the BESCOM cannot
consider IEX rate since BESCOM
will be in a awkward position if it
unable to get the power at the
said price.
Commission’s Views: The State has faced shortage of power due to reduction of
availability from the expected sources, resulting in increase in the quantum of
short-term power purchase. These purchases are being made through
competitive bidding, duly complying with the provisions of the Electricity Act 2003.
The Commission also notes that PCKL is indeed procuring power at exchange at
lower prices.
34. Interest on delayed payments should not be
passed on to the consumers.
BESCOM is not seeking for the
same in its tariff filing.
Commission’s Views: The Commission is not allowing any interest on the delayed
payment of power purchases in the ARR.
35. BESCOM has made huge payments towards
the leave encashment.
For FY15, leave encashment for
working employees and
retired/deceased is Rs.35 Crores
and Rs.16 Crores respectively.
Similarly for FY14, leave
encashment for working
employees and
retired/deceased is Rs.24 Crores
and Rs.12.02 Crores respectively.
The total employee cost for FY15
and FY14 is Rs.802 Crores and
Rs.753 Crores respectively. The
ccli
percentage of leave
encashment in employees cost
is 4.8% for FY14 and 6.4% for
FY15.
Commission’s Views: The matter is appropriately dealt in the Tariff Order. 36. The Commission has rejected additional
expenditures like employees’ bonus,
employees’ welfare fund and BESCOM's
contribution towards pension fund. Passing on
these expenditures on to the consumers by
BESCOM is objectionable.
Commission has allowed
employees expenses and O&M
expenses after duly considering
the annual weighted rate of
consumer price index and WPI.
Commission’s Views: The issue of allowable O&M expenses are discussed by the
Commission in detail in the relevant chapters of this order.
37. The BESCOM has inadvertently, added the
consumer contribution in the GFA, while
projecting the depreciation for FY17. The
BESCOM has considered a lower depreciation
rate of 4.87% for FY17 inspite of the fact that
the actual depreciation rate on assets created
out of consumer contributions was 6.45% for
FY15.
Major part of consumer
contribution assets are
transformers, cables and Lines.
The average depreciation
provided for FY-15 is 4.87% which
is well within the limit of
weighted average depreciation
rate of 5.04%. The depreciation
withdrawn as per AS-12 is 6.45%.
The depreciation for the
consumer contribution assets
(For AS-12) is made considering
the average life of all the assets
created as per the existing
policy. It is proposed to retain
the average rate of
depreciation for the consumer
assets subject to change in the
existing policy. Hence, average
depreciation is considered for
estimations of FY-17.
Commission’s Views: The Depreciation claims are being regulated as per the
existing MYT Regulations, also keeping in view the Orders of the Hon’ble ATE on
this issue.
38. The BESCOM has sought approval for O&M The BESCOM has trued up the
cclii
cost of Rs.1084.80 Crores on normative basis as
against an actual O&M expenses of Rs.1054.60
Crores. The O&M expenses of Rs.1013.25 Crores
and Rs.1028.63 Crores may be considered as
against Rs.1084.83 Crores and Rs.1308.12
Crores claimed for FY15 and FY17 respectively.
O&M cost to Rs.1084.83 Crores,
as against the approved O&M
cost of Rs.1110.95 Crores. The
O&M Expenses of Rs.1084.8
Crores have been calculated
on normative basis, as stipulated
in the MYT Regulations 2006
Commission’s Views: The Commission has appropriately dealt with this aspect in
this Tariff Order.
39. Weighted inflation index of 7.20% as against
8.47% for FY15 and 7.22% as against 8.34% for
FY17 should be considered.
Weighted inflation index of 7.2%
and 7.22% for FY15 and for FY17
respectively is not in line with the
CERC method of computation,
as computation of inflation
index for truing up is different
from estimation of inflation index
for future years. For truing up,
inflation rates are computed by
using statistical method
considering monthly actual
inflation rates of the previous
twelve calendar months. While
computing the CPI and WPI
numbers by the BESCOM, an
error has crept in for the years
2011 to 2013. For FY15, twelve
months data as per the CERC
method is considered.
Composite series is computed
duly taking 76% of CPI being the
employee cost to the total O&M
expenses and 24% WPI as per
the actual cost of Repair and
Maintenances cost to the total
O&M expenses. For estimation
of FY-17, past twelve calendar
years inflation data is
ccliii
considered which works out to
8.16%.
Commission’s Views: The Commission has suitably dealt with this aspect in this
Tariff order, in terms of the MYT Regulations.
40. Rs.134.31 Crores has been booked under
employee costs for FY15 on ad-hoc basis
without any actuarial valuation report to
support the claim of expenses. Further, pension
and gratuity contribution of Rs.50.08 Crores,
out of Rs.134.31 Crores remains unpaid and
thus, there has been a cash outgo of only
Rs.84.23 Crores.
P&G contribution constitutes
about 10% of employees cost
and thus, cannot be construed
as an independent expenditure.
Out of Rs.50.08 Crores provision
of Rs.0.27 Crores only relates to
P&G trust for March’15 and
Rs.17.61 Crores were provided
for FY-15, for payment of earned
leave encashment and Rs.32.74
Crores for liability due from the
Company for the fund created
under “Employees benefit
fund”. However, addition of
other liabilities related to
employees benefit under this
provision is regretted.
Commission's Reply: The Commission is allowing the O & M expenses which
includes employee cost, as per the provisions of the MYT Regulations after due
verification of BESCOM’s claims.
41. Interest earned by investing Pension and
Gratuity Fund has not been accounted for.
All the employees of the
erstwhile KEB/KPTCL are on
deputation to BESCOM. The
BESCOM is contributing its share
of pension contribution for its
employees to KPTCL. The KPTCL
has constituted a Pension &
Gratuity Trust and this Trust is
looking into the issue of terminal
benefits of all the employees of
BESCOM. This is a totally
independent transaction, where
BESCOM will only contribute its
ccliv
share as per statutory
requirements. Hence, the
question of interest on the P&G
contribution does not arise.
Commission’s Views: The responsibility of dispersal of pension to all the employees
of the erstwhile KEB/KPTCL, as on the date of transfer of assets and liabilities and
employees of KPTCL to the ESCOMs and the employees who retire while working
in BESCOM lies with the Pension & Gratuity Trust, which is an independent
institution. After receiving the contributions from the Government, KPTCL and
ESCOMs, the Trust is managing the dispersal of the pension and Gratuity to the
retiring employees. As such KPTCL and ESCOMs have no role in the investments
made by the Trust or any interest / returns earned on such investment.
42. The insurance fees of Rs.2 Lakh is meagre
amount compared to the huge distribution
system in place. BESCOM should clarify:
(1) The major infrastructure, installation and
system are under insurance cover; (2) If the
public is covered under third party insurance
against accidents due to unsafe installations.
Proper insurance coverage will result in
financial security and will also lead to
periodical system audit by the insurance
agencies which will result in better
organisational performance.
An amount of Rs.5 lakhs paid
towards property tax by
Nelamangala division has been
wrongly classified as
insurance/fee as per accounts.
Commission’s Views: The reply is limited to misclassification of the expenditure and
does not clarify the issues raised. The BESCOM should come out with a policy in
these issues.
43. As the O&M expenses for EHV/HV/LT
installations are non-uniform, different O&M
cost indexes for different voltage level needs
to be worked out as against application of
gross consumer growth at 5.83%. Only the
average (50%) of the annual growth should
be applied on the previous annual cost to
work out the escalation. O&M expenses
needs to be justified based on the industry
standard and as a percentage of the total
5.83% consumer growth is the
average one year growth rate.
The formula approved by the
Commission for computing O&M
expenses is universally
accepted. Hon’ble Appellate
Tribunal for Electricity has upheld
the decision of the State
Regulatory Commission
regarding approving O&M
cclv
capital installations in place. expenses linked with inflation
index, consumer growth rate
and efficiency parameters.
Commission’s Views: The Commission is arriving at the O & M expenses for the
Company as a whole based on the indices notified by the CERC. Hence the
voltage wise O & M cost indices are uniform. There is no case for modification of
this methodology.
44. It needs to be checked whether Rs.341.15
Crores drawn from PFC towards APDRP is a
grant.
Rs.341.15 Crores drawn from PFC
towards APDRP is a loan.
Commission’s Views: The reply furnished by BESCOM is acceptable. 45. Incentive of Rs.141.29 Crores for FY15, earned
due to timely payment of bills to the
generating stations, should not be covered
under "non-tariff income". Accordingly, it
should be reduced from the power purchase
expenses.
Interest charges on the delayed
payments are not a pass
through. Paying PP bills in
advance and earning incentive
for advance payment is an
efficient financial management.
Commission’s consideration for
giving 10% as an efficient
financial management is not
encouraging the efficiency and
the objector’s contention for not
allowing the incentive is totally
against the objective set in the
preamble of the Electricity Act,
2003.
Commission’s Views: The incentive earned on timely payment of power purchase
dues is treated as other income and deducted out of the total ARR. Hence the
benefit is passed on to the consumers. However, to encourage the ESCOMs to
pay the power purchase claims on time, a reasonable 10% of the incentive is
allowed to be retained by them.
46. Non-tariff income projected for FY17 may be
considered to increase over FY15 actual levels
by the weighted inflation index.
The estimation of non-tariff
income is based on the other
miscellaneous recoveries.
Commission’s Views: This issue has been dealt with suitably in the Tariff Order. 47. The demand charges should be retained at
the present level.
The BESCOM has proposed
increase in fixed charges vide
page No.218 to 222 duly stating
cclvi
reasons.
Commission’s Views: This matter has been dealt with suitably in the Tariff Order. 48. As capital cost of meters has been accounted
for in capital expenditure, meter rental
charges may be disallowed.
Any rental received will
definitely account as other
income.
Commission’s Views: Any income received by way of rentals, is rightly accounted
as other income and the consequent reduction in ARR passed on to the
consumers,
49. Interest rate on late payment surcharge and
interest rate on advance payment should be
fixed at a rate equivalent to the interest rate
on working capital.
The proposal made on advance
payment refers to advance
payment before due date.
Commission’s Views: The payment of interest by BESCOM is being regulated as
per the provisions of the MYT Regulations.
50. Since FY06, the BESCOM has made the
payment of energy charges including interest
of other ESCOMs of the State without getting
timely payments from them. As such the
interest incurred should not be passed on to
the consumers.
Expenditure made towards
other ESCOMs is treated as
receivables by respective
ESCOMs and the interest on
working capital as proposed by
BESCOM, is admitted by the
Commission under normative
basis. Therefore, these
transactions are not reflected in
the proposed tariff revision and
hence, the burden on
consumers does not arise.
Commission’s Views: The Commission is allowing interest on working capital as per
the norms prescribed in the MYT Regulations and no interest is being allowed
towards belated power purchase payments.
51. BESCOM has claimed RoE for FY15 and FY17
only on the opening balance of paid-up share
capital without considering the negative net-
worth and negative reserves and surplus.
Equity induced in the middle of
the year or incremental internal
resources accrued in the month
and invested during the year
should also earn the returns. If
the RoE allowed for the equity
held at the beginning of the
year, it will not give any returns
cclvii
on the equity induced during
the year. The principal
difference between the debts
and equity is the earlier one is
secured and the later one is not
secured. Hence the second one
has preferential treatment.
Hence BESCOM requested the
Commission to allow return on
the closing balance of the
equity.
Commission’s Views: This issue is suitably dealt with by the Commission in this Tariff
Order.
52. The energy charges collected from the
Government for BJ/KJ installations are much
higher than the actual energy consumption.
BJ/KJ installation bills are
prepared on the basis of meter
readings obtained.
Commission’s Views: Reply furnished by the BESCOM is in Order.
53. Tariff applicable to MSME should not be
revised.
The tariff applicable to industries
is lower than that of
commercial.
Commission’s Views: The increase in the average cost of supply has to be borne
by all the consumers, in order to recover the costs.
2. Objections relating to Quality of Service:
Objections Replies by Licensee
54. The BESCOM should provide 3-phase power
supply to IP sets consumers during day time
instead of night hours.
The BESCOM is adhering to the
directions given by the GoK
regarding duration of power
supply to the IP set consumers.
Commission’s Views: The Reply furnished by the BESCOM is in order.
55. Steps taken for improving efficiency have not
been indicated. Further, gains due to
efficiency improvement which could have
been transferred to the consumers have not
been calculated.
Truing-up of FY15 is placed
before the Commission with
comparisons between the
approved figures versus actual
figures. Efficiency gains will be
measured by the Commission
cclviii
and the Commission will take
care of sharing of gains due
considering the approved
targets.
Commission’s Views: The sharing of gains and losses have been dealt with
suitably in the Tariff Order.
56. The BESCOM should not claim the subsidy for
closed IP set installations from the
Government. Supply to unauthorised IP set
installations should be disconnected.
Permanent infrastructure is not yet established
for the unauthorised installations which are
regularised under Akrama/Sakrama scheme.
The BESCOM is adhering to the
GoK Orders from time to time
regarding unauthorised IP sets.
Regarding regularisation of
unauthorised pump sets,
BESCOM is following the
directions of the GoK from time
to time.
Commission’s Views: The reply furnished by BESCOM is in order. 57. Voltage fluctuations lead to burning of
transformers resulting in reduction in yield.
Specific incidents should be
brought to the notice of
BESCOM. If the request is not
considered, then the objector
can submit the complaint to
CGRF.
Commission’s Views: The reply furnished by BESCOM is in Order.
58. The following measures should be
implemented: (A) One representative from
consumers should be nominated for BESCOM
board member to have a financial discipline;
(B) Every district ombudsman shall appoint
members from agriculture consumers category
to obtain guidance and co-ordination; (C)
Advisory Committee to be created and in that
at least two members should be nominated
from agricultural consumers category. This
committee shall conduct monthly meeting to
reduce the financial losses of BESCOM; and (D)
Cancellation of few prevailing guidelines and
incorporation of few new guidelines.
BESCOM is a Government of
Karnataka undertaking and the
power of appointing of
members to the administrative
board is vested with GoK.
Further, district-wise CGRF is
already prevailing. One
Ombudsman is appointed for
entire State. Representative
from consumers has been
nominated as a member of
each district CGRF.
Appointment of advisor to
BESCOM is not in the scope of
the Commission. Objector has
not placed clarity regarding the
cclix
cancellation of few prevailing
guidelines and incorporation of
few new guidelines. However,
BESCOM will accept all
guidelines which are helpful to
the consumers.
Commission’s Views: The reply furnished by BESCOM is in order.
59. Any residual energy that needs to be
accounted will be booked under IP set
consumption. Similarly T&D losses are also
booked under IP set consumption.
Lower IP set consumption is
advantageous to BESCOM as by
lowering the sales, the average
cost as supply will increase
which can be passed on to the
consumers through tariff.
Commission’s Views: The issue of distribution losses and IP set consumption has
been dealt with suitably in this Tariff Order.
60. The BESCOM has not furnished the number of
DTCs feeding the IP sets. The ESCOM has not
given the number of IP sets after enumeration
and BESCOM should submit to what extent
these numbers differ from DCB figures.
BESCOM should clarify whether enumerate
figures are incorporated in DCB and how it
effects the subsidy calculations. BESCOM has
not submitted the impact due to difference in
the figures. BESCOM is not serious about
regularisation of IP sets. The Commission should
direct BESCOM to complete metering by the
end of 2015. BESCOM should consider the
number of unauthorised IP sets while
calculating specific consumption of IP sets.
The BESCOM is calculating IP set
consumption based on the
Agricultural feeder exclusively
feeding IP sets in accordance
with the directions of the
Commission. The enumerated IP
set numbers are depicted in
monthly DCBs. Further, GoK in its
circular no. EN 41 VSC 2014 P1
dated 14.07.2014 has stated
that the unauthorised IP sets will
be treated at par with new IP
set connections. Further, the
BESCOM is recording monthly
progress of unauthorised IP sets.
The BESCOM is metering the
agricultural feeder which is
exclusively feeding the IP sets.
By taking up NJY Phase III,
BESCOM will be able to meter all
the agricultural feeders feeding
IP sets.
cclx
Commission’s Views: The matter is appropriately dealt in the Tariff Order. Further
necessary directions have been issued to the BESCOM in the matter.
61. The BESCOM should submit the basis of arriving
at average IP set consumption at various
locations. The BESCOM should explain the
reasons for huge variation in the average
consumption of IP sets at different places.
Further, the BESCOM should explain the
reasons for huge variations in the average
consumption at same place in different
months. BESCOM should explain how the
consumption of remaining 2.5 lakh pump sets is
worked out. BESCOM should furnish the data of
number of existing pump sets and number of
pump sets which are in working condition.
The BESCOM is calculating IP
sets consumption based on the
agricultural feeder exclusively
feeding IP set. This is done as per
the direction of KERC. The
Commission has also prescribed
a format for computing the
sales of IP sets. The month wise IP
set details for FY-15 is furnished
during the validation meeting.
Commission’s Views: Reply furnished by the BESCOM is acceptable. Necessary
directions have been issued to the BESCOM in the matter.
62. The morning peak is attributed to domestic
and A.E.H consumers. The BESCOM has not
furnished any information regarding reduction
in the peak load due to implementation of
TOD. As such, the Commission may cancel
compulsory TOD and make it optional.
HT consumers consume 50% of
energy and domestic
consumers consume 25% of the
total energy. The domestic
consumers are bound to install
solar water heaters. Thus,
morning peak cannot be
attributed only to domestic
consumers. TOD metering is a
demand side measure to clip
the peak demand. As per the
existing TOD structure, penalty is
being levied for consumption
during 6 PM to 10 PM and
incentive is being extended for
consumption during 10 PM to 6
AM. Since, the time slots for
rewarding and penalising are
divided unequally, the HT
consumers stand to gain.
cclxi
Commission’s Views: It is noted that the ESCOMs are not measuring the impact of
the ToD tariff to know its advantages and disadvantages. The BESCOM is
therefore directed to report the impact of the ToD tariff and suggest whether any
changes are required in the current arrangement.
63. BESCOM is yet to install timer switches on the
street lights and thus, has failed to implement
Demand Side Management.
BESCOM has huge payable
from BBMP and other local
bodies to the tune of Rs. 824.35
Cr as on March 2015. BESCOM
cannot burden itself further by
providing timer switches to street
light.
Commission’s Views: In order to conserve energy, installation of timer switches has
been directed by the Commission. Issues relating to implementation of this
direction will be dealt with by the Commission separately.
64. The BESCOM has not yet replaced less efficient
pump sets with more efficient ones. The
BESCOM is still to provide solar powered IP sets
Demand side management in
agriculture for replacement of
less efficient pump-set by high
efficient pump sets is under
discussion with M/s. EESL to
come up with solution for
baseline study. BESCOM is
proposing to provide solar
power to 310 IP sets on pilot
basis. Work is under progress.
The tentative date for
completion of project is
31.03.2016.
Commission’s Views: The reply of the BESCOM is acceptable. Commission would
monitor the progress of the proposed scheme.
65. BESCOM has failed in providing any concrete
plan towards agricultural DSM instead focuses
solely on industrial DSM.
Demand side management is
required in all sectors of
consumers. Industrial consumers
are aware of the technology.
Commission’s Views: The reply of the BESCOM is acceptable. The Commission will
monitor implementation of DSM programmes under the DSM Regulations.
66. The BESCOM has not been able to implement Extent of implementation of
cclxii
HVDS in all the sub-divisions. The BESCOM
should submit the time frame for completion of
the remaining works.
HVDS system is narrated in the
Petition. HVDS project is being
implemented as per the policy
decision of the Government
and pilot project is under taken
based on the Commission’s
directions.
Commission’s Views: The reply of the BESCOM is acceptable. The Commission is
reviewing regularly the progress achieved under this programme.
67. Industries are suffering due to load shedding.
Independent feeders should be provided to
the industries for getting quality supply.
BESCOM is striving hard to
provide uninterrupted supply to
all its consumers. Any specific
issue may be brought to the
notice of BESCOM.
Commission’s Views: The reply furnished by BESCOM is acceptable. 68. The BESCOM has only been able to meter 56%
of the total 2,04,992 DTCs in the last four years.
DTC metering is important to calculate DTC
wise line losses.
BESCOM has decided to
embark upon metering of all
DTCs during FY17. Once, the
metering is completed the DTC
wise line losses will be worked
out.
Commission’s Views: The reply of the BESCOM is acceptable. The Commission is
regularly reviewing the compliance of the BESCOM in the matter.
69. BESCOM has not submitted existing HT/LT ratio.
Further, BESCOM should furnish the efforts
taken to reduce the HT:LT ratio.
In page no 1 of chapter- 1, the
details are depicted on the ratio
of the HT and LT line as on 30th
September 2015.
Commission’s Views: The reply of the BESCOM is acceptable. 70. BESCOM has not furnished the details of
distribution transformers failures. Further, the
BESCOM has not submitted the expenditure
incurred in repairing the failed transformers
and proposal to reduce the failure in future.
The details of transformer failure
rate are graphically represented
in page 13 of the Petition.
Commission’s Views:. The issue is discussed in the Tariff Order.
71. Consequent to poor quality of repair works
carried out in transformer repair centres, the
frequency of failure of repaired good
Replacement of failed
transformer works is carried out
in BESCOM as per the prevailing
cclxiii
transformers is increasing. standard of performance. Any
lapses in implementing the
same, if found by the objector
may be submitted to the CGRF.
Commission’s Views: The reply furnished by the BESCOM is acceptable. 72. The actual amount incurred on transformer
failures is 7 times more than the approved
figures.
The Commission has not
approved any amount to incur
transformer failures, rather only
approved the O&M cost on
normative basis where entire
Repair and Maintenance cost
(about 5%) is only a part of O&M
expenditure.
Commission’s Views: The O & M expenses approved by the Commission include
the repairs and maintenance to the distribution system. The Commission has
examined this issue in the Tariff Order.
73. The BESCOM is not disseminating information
regarding substation-wise and feeder-wise
interruptions every month. BESCOM has not
submitted the details of average number of
interruptions per consumer and average
duration of interruptions per consumer.
The BESCOM is providing feeder-
wise power supply details to the
Commission. Further, BESCOM is
furnishing the interruption
statement to the Commission
regularly.
Commission’s Views: The reply furnished by BESCOM is in order. The Commission is
regularly monitoring quality of power supply by the BESCOM.
74. BESCOM is resorting to load shedding without
making alternate arrangements for the
purchase of power from spot market.
Consumers are not being informed 24 Hr in
advance regarding the time and duration of
load shedding. Likely time of restoration is not
informed to the consumers. Unscheduled load
shedding and introduction of staggered
holidays have adversely affected the industrial
consumers.
BESCOM is striving hard to
provide uninterrupted power
supply to all its consumers. Any
specific issue may be brought to
the notice of BESCOM. Toll free
number 1912 has been
established for the consumers to
register their complaints.
BESCOM is being made
responsible for the scheduled
and un-scheduled interruptions
being carried out by KPTCL and
KPCL. Unavailability of the KPTCL
transmission system becomes a
cclxiv
part of BESCOM's interruptions.
Similarly, generating companies
also have their availability
norms.
Commission’s Views: The Commission has issued suitable directions to the
BESCOM in the matter of load shedding especially about advance
communication to the consumers through SMS etc. The Commission is also
reviewing regularly the reliability power supply by the BESCOM.
75. The directives of the Commission need to be
implemented regarding performance based
incentive, annual setting of KPIs for all divisions,
periodical measurement of performance,
reward and recognition system for outstanding
performances.
Corporate office is dealing with
major aspects of power
purchase, subsidy accounting
and borrowings and dissection
of these major expenses which
involves high cost
purchase/Short term purchases
etc. Also dissection of
Subsidy/Grants/Capex and
borrowing against the proposed
two divisions for SBU may not
happen logically. Hence, SBU
conceptualization is dispensed
with.
Commission’s Views: The Commission has directed all the ESCOMs to adopt
suitable methodology to ensure that their divisions and sub-divisions work on
commercial principle. The review of its implementation and achievement would
be taken up.
76. BESCOM is yet to achieve 100% metering. Metering to irrigation pump sets
is not achieved due to protest
from farmers.
Commission’s Views: The Commission in the Tariff Order has given suitable
directions for correct assessment of power consumption by IP Sets even where it is
not feasible to immediately install individual meters.
77. Hotline call-centres may be established for
reporting complaints and accidents for all
divisions. Multiple mobile service units may be
set up for attending faults and emergencies.
Call centre service is in place for
handling all kinds of complaints.
Additional 214 service stations
have been opened across
BESCOM, provided with men,
cclxv
vehicles and equipment.
Commission’s Views: The Commission is reviewing regularly the performance of
the BESCOM in handling these issues.
78. BESCOM should declare their performance
standards and KPIs. The compliance report
and supporting documents should be
submitted to the Commission for quarterly
review. Stringent penalty may be imposed for
non-compliance to the agreed level of
performance.
BESCOM is furnishing the details
of implementation of the
Standards of Performance, to
Commission on quarterly basis.
Commission’s Views: The reply furnished by the BESCOM is in order. 79. Automation project in Peenya and Electronic
City is not completed even after 15 years.
The likely date of completion of
Distribution Automation System is
during March, 2017.
Commission’s Views: There has been an abnormal delay in execution of this
programme. The BESCOM should ensure that it is completed within the time
indicated now.
80. BESCOM should submit in how many divisions
the instructions for implementation of Standard
of Performance (SOP) is displayed on Notice
board.
The SOP parameters are
displayed in all the sub-divisions
of BESCOM and the same is
reported to the Commission
Commission’s Views: The reply furnished by the BESCOM is acceptable. 81. BESCOM is not adhering to safety rules. Highest
number of accidents happened in FY15. Safety
standard of the electrical installations needs to
be improved.
The BESCOM’s replies on
prevention of electrical
accidents are narrated in page
no.193 of the Petition.
Budgetary provisions are made
for identification and
rectification of hazardous
locations for prevention of
accident.
Commission’s Views: The reply furnished by the BESCOM is acceptable. The
Commission apart from issuing suitable directions to the BESCOM on this issue, has
been reviewing regularly its compliances.
82. BESCOM should furnish the Reliability Index of
feeders. BESCOM should furnish for how many
feeders there is improvement in reliability
index.
Monthly reliability index is being
submitted to the Commission
and the same is available on
BESCOM's website.
cclxvi
Commission’s Views: The reliability indices, as submitted by the ESCOMs, are being
hosted on the Commission’s website and are also reviewed by the Commission.
83. Formation of TIC was not required since
research wing of BESCOM is carrying out
research on ways to reduce energy wastage,
inventory, etc.
BESCOM has no Research wing.
Hence, BESCOM has started the
Technology Innovation Centre.
Commission’s Views: The reply furnished by BESCOM is in order. 84. Unmetered agricultural connections lead to
anomalous figures of consumption. In absence
of metered data of agricultural consumption,
claims of BESCOM for government subsidy
need a thorough scrutiny. Metering to all
sectors may be made mandatory. Subsidy to
be disallowed without submission of metered
data. Direct cash subsidy to the farmers to be
implemented.
BESCOM is calculating IP sets
consumption based on the
agricultural feeder exclusively
feeding IP set. This is done as per
the direction of KERC. The
Commission has also prescribed
a format for computing the sales
of IP sets. The month wise IP set
details for FY-15 are furnished
during the validation meeting.
Commission’s Views: The matter is appropriately dealt in the Tariff Order. 85. BESCOM has failed to improve the efficiency of
its operations. The power supply quality in rural
areas has deteriorated during the current year.
Under Niranthara Jyothi Yojana
(NJY) all rural domestic,
commercial and industrial
consumers are getting power
supply as per the Govt.
notification. BESCOM is
supplying power to the IP set
consumers as per the Govt.
Order received from time to
time.
Commission’s Views: The reply furnished by the BESCOM is in order. 86. Consistent and reliable system should be
developed to ensure 100% compliance to the
directives of the Commission. The Commission
may seek for compliance report with
supporting periodical MIS data and analysis.
BESCOM has complied with
many of the directives of the
Commission, for a few directives
BESCOM seeks time extension to
comply with the same.
Commission’s Views: The Commission is regularly reviewing compliance of the
BESCOM to the Commission’s directives in the quarterly meetings of ESCOMs.
87. BESCOM has not furnished any plan for
introduction of pre-paid meters.
BESCOM is installing and
commissioning 3525 prepaid
cclxvii
meters on pilot basis to
temporary installations in
Indiranagar.
Commission’s Views: The reply furnished by the BESCOM is in order. The BESCOM
shall however, prepare a time bound plan to introduce pre paid meters to other
categories of consumers.
88. BESCOM has not implemented the directives
by CEA regarding harmonics to be maintained
within the specified limits.
BESCOM has not furnished reply
to this query.
Commission’s Views: The provisions are made in Karnataka Electricity Grid Code
and the Commission directs BESCOM to comply with the same.
89. The BESCOM should furnish the data regarding
the demand, availability and amount of
energy purchased from spot market on its
website.
The BESCOM is underway in
implementing SCADA data
reporting and analysis (SDRA)
software. This software comprises
of sending SMS to consumers on
power interruptions and
restoration, and hourly day-
ahead projections. The daily
interruption details, daily load
curve and availability are being
displayed on the BESCOM's
website.
Commission’s Views: The reply furnished by BESCOM is not relevant. Necessary
directions have been issued to the BESCOM in the matter.
90. Slab-wise sanctioned load, fixed charges,
energy charges, development charges
collected and consumption are not made
available by the BESCOM.
Desired information in the
Commission prescribed format
for tariff fixation is furnished to
the Commission.
Commission’s Views: The reply furnished by BESCOM is in order. 91. 92. BESCOM should furnish the empirical formula
and calculation sheet used for preparing load
forecast studies.
BESCOM has projected its load
forecast based on four years'
CAGR. The details of sales
forecast are explicitly explained
in tariff filing.
Commission’s Views: The matter is appropriately dealt in the Tariff Order.
92. BESCOM has not completed the consumer BESCOM has given the required
cclxviii
indexing and Geographical positioning system
of the consumers.
details in its reply to preliminary
observations. Further, time
schedule for completion of
Consumer indexing is submitted
to the Commission.
Commission’s Views: The BESCOM should adhere to the time schedule given and
complete the consumer indexing work and also submit the energy audit reports
regularly to the Commission.
93. The BESCOM should clarify as to why it has not
opted for the UDAY scheme for restructuring its
debts.
State Government has to take a
decision on UDAY Scheme.
Commission’s Views: The reply furnished by the BESCOM is in order.
94. BESCOM has not segregated the commercial
and technical losses as stipulated under the
Tariff Policy. Further, actual losses should be
automated as against simulation method to
determine losses.
Segregation of commercial and
technical losses is furnished in D-
19 formats. AT&C losses for FY15
as per accounts is16.76%. Further
reduction in this aspect depends
on the payment of dues from
the Urban and rural local bodies.
Commission’s Views: The reply furnished by the BESCOM on segregation of losses
is acceptable. 95. The break-up of losses at various voltage levels
needs to be analysed to identify the causes of
higher losses. Projected distribution losses are
much higher as compared to the other
distribution companies in the country. SCADA
should be used for identifying and reducing
losses. Stringent targets should be fixed to bring
down the loss percentage at par with the
average percentage losses recorded with the
five distribution companies in India with lowest
loss levels.
Distribution Loss involves both
technical and non-technical
loss. If only Bangalore
Metropolitan area is considered
then the distribution loss is
approximately 8%. BESCOM has
already reduced its distribution
loss from 20% in FY08 to 13.53% in
FY15. Further reduction in
distribution loss needs
participation from both BESCOM
and consumers.
Commission’s Views: BESCOM shall conduct suitable studies to correctly measure
the voltage wise losses and identify the high loss making feeders and take
remedial measures.
96. Reduction in distribution losses is very marginal. Distribution loss is within the
band width of KERC target.
cclxix
Commission’s Views: The matter has been dealt with suitably in the Tariff Order. 97. The number of cases booked under vigilance is
increasing every year. The BESCOM has not
submitted the amount of revenue realised from
the cases booked under vigilance.
Since the cases are in the
course of adjudication, revenue
will not be realised in the same
year.
Commission’s Views: The reply furnished by BESCOM is acceptable.
3. Specific Requests :
Objections Replies by Licensee
98. OA may be extended to consumers drawing
power below 1 MW.
BESCOM has not furnished any
reply.
Commission’s Views: The Commission has extended ‘Open Access’ only to
consumers with contract demand of 1-MW and above keeping the relevant
factors into consideration. Currently, there is no case for its review.
99. A ten year business plan with all projected
costs against the projected demands duly
evaluated by the Commission should be in
place.
Not replied.
Commission’s Views: The Commission has dealt with the BESCOM’s business plan
suitably in the Tariff Order.
100. BESCOM should establish single window
clearance system for getting new connections
along with Tatkal scheme.
BESCOM has taken note of the
proposal.
Commission’s Views: The Commission will consider any proposal of BESCOM on
this issue.
101. Energy audit to be made compulsory in all the
divisions by independent energy auditors.
BESCOM may be insisted upon complying with
the provisions of the Energy Conservation Act,
2001.
Two different software agencies
are working on consumer billing
system. Integration of these to
billing software to the network is
a herculean task. Modules are
being fixed to every meter and
consumer tapping is under
progress.
Commission’s Views: The BESCOM’s reply does not cover the suggestions made.
The Commission has directed the ESCOMs to carry out energy audit.
102. Energy audit of 24 towns shows the losses are BESCOM is providing the details
cclxx
more than 15% in 18 towns. The losses are as
high as 45.74%. BESCOM has not taken any
initiative to bring down these losses below 15%.
Further, energy audit at inter-phase points is
not done. BESCOM has not furnished data of
energy audit of 15 towns. BESCOM has not
furnished voltage-wise losses.
of Energy Audit of division,
towns, cities and DTCs to the
Commission regularly in the
format prescribed.
Commission’s Views: Though the details of energy audit are being furnished to the
Commission, it is observed that, there are several data inconsistencies, giving
inaccurate results. The BESCOM has been directed to rectify them and furnish
more consistent data compliance to these directions would be monitored by the
Commission.
103. LT2(b) tariff was extended to nursing homes
and hospitals in the previous Tariff Orders.
Since, the nursing homes and hospitals are
equipped with scanning and X-ray machines,
they are not eligible for LT2(b) tariff. Hence, the
Commission may insert the word "dispensary
and out-patient medical practitioner" instead
of nursing homes and hospitals.
The words which are not
specifically defined in the
Regulations should be read as
defined in the dictionary. The
dictionary meaning of 'Nursing
Home' is a 'small private
institution providing residential
accommodation with health
care, especially for elderly
people'. Or ' A privately
operated establishment
providing maintenance and
personal or nursing care for
persons who are unable to care
for themselves properly' and the
word 'hospital' means 'an
institution providing medical and
surgical treatment and nursing
care for sick or injured people'.
Commission’s Views: The Commission will consider the request appropriately. 104. As the Police Stations/offices do not carry out
any commercial activity, they may be re-
categorised under LT-2(a) i.e., domestic
category similar to fire service Stations as
against LT-3 applicable for commercial
category.
The purpose for which supply is
required by 931 police
stations/offices is to carry out
business, clerical or professional
activities. The dictionary
meaning of the word 'Office' is a
cclxxi
room, set of rooms, or building
used as a place of business for
non-manual work. Hence, police
stations/offices are comparable
with BESCOM offices, post
offices, pvt. offices. Therefore,
they are billed under LT3 tariff.
On the contrary "Fire- service
Station" means a building where
fire fighting vehicles and
equipment are stationed and
where fire fighters on duty wait.
Accordingly, they are billed
under LT2(a) tariff. Hence, "Fire-
service Stations" are not
analogues to police stations. If
domestic tariff of Rs.4.71 per unit
is made applicable to police
stations, then some high-end
consumer has to bear the cross-
subsidy of 94 paise per unit.
High-end consumers are going
on Open Access to avoid the
tariff hike.
Commission’s Views: The reply furnished by the BESCOM is reasonable.
105. Demand-based tariff may be extended to LT 2,
LT 4, LT 6 and LT 7 categories. The consumers
will not have any unnecessary interference in
his installations and the exact load on
transformers can be calculated.
Demand based tariff is provided
to LT3 and LT5 category having
connected load of 5kW and
above. As per the provisions of
demand based tariff, the
consumers can have the load
more than the sanctioned load
in his premises. In case of LT2(a)
as per the Regulations, fixed
charges for domestic and A.E.H
category shall be based on the
sanctioned load, irrespective of
cclxxii
the connected load, as long as
the load limiter is working in
good condition. Hence,
demand based tariff is not
suitable for this category. Other
categories such as LT2(b)
(except educational institutions),
LT4, LT6 and LT7 should not have
the load more than sanctioned
load. As, the meters fixed to
these categories of installations
have no option for recording
maximum demand.
Commission’s Views: The reply furnished by the BESCOM is acceptable. 106. The amount paid by the consumer towards
purchase of meters should be considered as
meter security deposit.
The contention of the consumer
is correct but this is the forum for
discussing tariff revision only.
Commission’s Views: The reply of the BESCOM is acceptable. 107. Under LT2(a) category, the MCB is provided as
per the sanctioned load. It is requested that
the MCBs should be supplied by the ESCOMs
to avoid conflict about the genuineness of the
MCB and the MCBs should be sealed along
with the meter during the service connection.
The Objector may look into the
amendments issued by the
Commission on 25th January,
2016. The amended Regulations
enable the licensee to bill the
installations on the MD recorded
or sanctioned load whichever is
higher for installations where
static meters are fixed.
Commission’s Views: The issue raised does not relate to tariff determination. 108. An appropriate roadmap for 100% metering
indicating incentives and disincentives should
be approved by the Commission.
The existing tariff is not
supporting the recovery of Cost.
Without any financial backbone
achieving the road map is very
difficult.
Commission’s Views: The issue does not relate to tariff determination.
109. The small scale industries may be exempted
from the tariff revision. There should be a
separate tariff for small scale industries, which
should be Re. 1 less than other categories.
The Commission judiciously fixes
differential tariff to the subsidised
consumers for different ESCOMs
and allocates the government
cclxxiii
subsidy duly considering the
consumer mix of each ESCOMs
for having a uniform tariff. As
such uniform hike is proposed for
all category of consumers.
BESCOM is reeling under
financial crunch. BESCOM
cannot think of reducing the
tariff by Re. 1 for small scale
industries.
Commission’s Views: All categories of consumers need to share any revision in
tariff.
110. On certain occasions, there was no power
supply for seven days in Peenya, which
resulted in increase in the manufacturing cost.
For FY16, UPCL generator along
with RTPS unit failed. Hence,
BESCOM was not able to give
power supply.
Commission’s Views: This is not a tariff issue. 111. The BESCOM has not proposed a separate
tariff category of Objector's installation in
accordance with the KERC Order dated
21.01.2016 in O.P. No.43/2015, in case of Indian
Machine Tools Manufacturers' Association and
others Vs. BESCOM.
An exhibition is analogous to
kalyana mantapas and is
clustered under commercial
activity. If M/s. IMTMA if treated
as special case then other
dedicated permanent
consumer will take cognizance
and ask the Licensee to treat
them alike. As the objector has
been holding similar events for
the past few years, the objector
would have a reasonable
assessment of the probable
demand for power with enough
room for fluctuations. Further,
during registration process, the
objector is informed in advance
about the manner of
participation and details
thereof. This would also enable
the objector to assess the
cclxxiv
approximate demand for
electricity during such events.
Further, Clause no.8 of the
‘General Terms and Conditions
of Tariff specifies that:
(8) Use of power for temporary
illumination in the premises
already having permanent
power supply for marriages,
exhibitions in hotels, sales
promotions etc., is limited to
sanctioned load at the
applicable permanent power
supply tariff rates. Temporary
tariff rates will be applicable in
case of load exceeds
sanctioned load as per the
Conditions of Supply of
Electricity of the distribution
licensees in the State of
Karnataka.
Thus, the Commission is
requested not to create a
distinct tariff for M/s. IMTMA
Commission’s Views: The Order of the Commission in OP No.43/2015 is considered
appropriately in the Tariff Order.
112. Rooftop solar may be encouraged with higher
incentives
GoK has mandated installation
of solar water heaters. Hence,
the question of rebate does not
arise.
Commission's Views: This is not a retail tariff related issue.
113. The Commission may direct BESCOM to have
its own generation to an extent of 2000MW
and thus, BESCOM will be able to supply
cheap power exclusively to its consumers.
BESCOM won't be able to fund
for installation of generation
facility.
cclxxv
Commission’s Views: The suggestion made is not feasible.
114. The Commission should not allow cross-subsidy
in respect of un-metered category
Metering to irrigation pump sets
is not achieved due to protest
from farmers.
Commission’s Views: The issue of power supply to IP Sets eligible for subsidy from
Government is discussed in the Tariff Order.
115. A substantial reduction in tariff is required to
ensure survival of energy intensive industries in
Karnataka due to competition from
neighbouring States.
Electricity tariff in Karnataka
cannot be compared with that
of other States. As different
States adopt different method
of charging the consumers.
Commission’s Views: The reply of the BESCOM is acceptable.
116. 5 paise and 15 paise reduction given to rural
areas appears to be meagre. Further
reduction may be given.
The BESCOM has already
commenced Niranthara Jyothi
Yojana for providing better
supply to the rural areas. The
benefits are also detailed in
BESCOM’s filing.
Commission’s Views: Reply furnished by the BESCOM is acceptable. 117. The rebate on solar water heaters should be
increased to Rs.400 per month in view of the
energy saving and carbon credits earned.
Domestic category is subsidised
and the tariff is much lower than
the average cost of supply. The
net realisation rate is still lower
than the approved level. The
National Tariff Policy mandates
for reduction of cross-subsidy
gap over a period of time. The
alternatives available with the
Commission is to increase the
rates of domestic tariff or to insist
the domestic consumers to go
for other sources of energy i.e.,
solar or solar wind hybrid, for
reduction in cross-subsidy
component to other category of
consumers. Under the above
circumstances any single unit of
energy saving from the
cclxxvi
domestic consumers will lessen
the burden of other consumers
and this will not yield any
revenue to BESCOM. To mitigate
the raise in power purchase cost
and to meet the demand-
supply gap GoK issued
notification for mandatory
installation of solar water heater
in 2007. Solar rebate is being
extended only to domestic
category consumers. The reason
being reduction in sales for
domestic category as well as
reduction in morning peak load
and increase in sales in other
categories. The GoK has notified
mandatory installation of solar
water heaters. Hence, the
question of rebate does not
arise. Thus, BESCOM proposes to
withdraw the solar rebate in
gradual manner.
Commission's views: The Commission, considers that there is no case for any
revision of the present rebate.
118. The BESCOM should furnish the timeframe for
completion of Bachat lamp Yojana
Bachat lamp Yojana is not
continued due to non-
participation of CFL firms. It is
Government of India project,
where BESCOM has least scope.
Commission's views: The BESCOM’s reply is acceptable. 119. BESCOM should furnish the number of LED
bulbs sold and savings thereof in MU.
Total number of LED lamps as on
19.02.2016 is 12,97,345.
Commission’s Views: The BESCOM’s reply is acceptable. 120. Time frame for completion of remaining
feeders in Phase II and Phase III of NJY scheme
should be indicated. Further, improvement in
power supply achieved in rural areas by
The detailed benefits derived
from Niranthara Jyothi project is
illustrated in page number 181-
186 of BESCOM’s filing. To
cclxxvii
implementation of NJY scheme needs to be
quantified.
segregate the Irrigation pumps
from the existing rural feeders
with aim to provide 24 hours
supply to non-IP consumers. 3rd
party report on Nirathara Jyothi
is available in the filing is
attached a part of filing.
Commission’s Views: Reply furnished by the BESCOM is acceptable. The
Commission is reviewing the matter regularly in its review meeting.
121. Objections by BWSSB: The Power tariff at
present accounts for 64% of the revenue of
BWSSB and is the single largest item of
expenditure, and the proposed hike of 1.02
paise per unit in power tariff would result in
additional burden of Rs.100 Cr to BWSSB. The
nature and purpose for which the electricity
supply is required should be considered while
determining tariff as more than 35% of the
water is supplied to BPL and EWS consumers.
ESCOM has not furnished at least two years
data preceding the base year of the MYT
period. The BESCOM has not submitted any
perspective plan as required under the KERC
Regulations.
The average cost of supply for
FY15 stand at Rs.5.59 per unit
and is estimated to reach
Rs.5.68 and Rs.6.11 per unit for
FY16 and FY17. Hence, increase
in tariff is proposed. As per
Section 61 of the EA 2003, the
tariff progressively reflects the
cost of supply of electricity and
also reduces the Cross-subsidy.
The tariff fixed for HT-1 category
is 82% of the average cost of
supply. This category requires
18% cross-subsidy from other
consumers. BESCOM has
submitted the data in the
Commission specified format
which requires of two years of
audited data and current year
data and projection of the
Control period. BESCOM has
submitted the Perspective plan
to the Commission.
Commission’s Views: The reply furnished by the BESCOM is acceptable. 122. The objector requests the Commission that the
tariff of small horticultural nurseries shall be
equivalent to agricultural tariff.
At present the objectors are
paying Rs.2.40 per unit. The
average cost of supply during
the financial year FY15 was
Rs.5.65 per unit and it is
cclxxviii
estimated that the avg. cost of
supply during FY17 will be
Rs.6.11per unit. Therefore,
objector has to pay Rs.3.42 per
unit which is 44% lesser and the
difference (i.e., Rs.2.69 per unit)
is to be paid by the other
category consumers as cross-
subsidy. Further, as per EA 2003,
KERC cannot impose more than
20% cross-subsidy to other
category consumers.
Commission’s Views: The matter is appropriately dealt in the Tariff Order.
Other Issues: Objections Replies by Licensee
123. Open Access consumers who are
purchasing wind power should be
exempted from imposition of Cross-subsidy
surcharge. Wind power should not be
considered as open access. Wind
generators should be treated at par with
solar energy generators and exempted
from levy of wheeling and banking
charges. The ESCOMs are claiming the
demand charges in the bills as well as
factoring in the ARR calculations. The
Demand charges so collected should be
refunded.
The BESCOM has to bear the
incidental costs due to
movement of OA consumers in
and out of the grid at the
instance of market. Owing to
the increase in fixed charges in
transmission and distribution
business, BESCOM had
requested the Commission to
reintroduce cross subsidy
surcharge during FY12. The cross
subsidy surcharge has been
calculated as per the formula
given in National Tariff Policy.
Hence, Open Access
Consumers who use the
transmission and distribution
network should bear the cost of
network plus losses besides
paying cross subsidy surcharge.
Any third party sale is Open-
Access. It is for the generator to
cclxxix
enter into long term PPA if
situation is not favourable for
him. The Commission as per the
Tariff Policy, has exempted
cross-subsidy, wheeling and
banking charges only for solar
power.
Commission’s Views: The Commission is determining the cross subsidy surcharge
as per the methodology specified in the MYT Regulation.
124. Tax on captive power may be removed No comments.
Commission's Decision: The issue raised is not within the purview of the
Commission.
125. Bank Guarantee towards 2 MMD may be
accepted. Cash payment should not be
insisted.
Bank Guarantee in respect of 2
MMD is adjudicated before the
Hon'ble High Court. For other
payments bank guarantee is
accepted.
Commission's Decision: The BESCOM's reply is noted. 126. KPCL should reduce the cost of generation
from hydel plants which have been fully
depreciated. The PLF of the thermal stations
have come down to about 60% from 85%. The
Commission may address KPCL and State
Government for improvement of PLF.
Fixation of tariff is guided by the
Tariff Policy and other State
Policies. At present, allocation of
power from hydel and thermal
stations are done through GoK
Order which is accepted by the
Commission. The relevant data
seeking the tariff revision is
placed before the Commission.
Commission's Decision: The reply furnished by the BESCOM is not relevant. The
Commission has been advising KPCL suitably in the matter.
127. The BESCOM has suffered losses due to the
decision taken by the BESCOM administrative
board.
The Additional chief secretary
Energy Dept., GoK is the
chairman of BESCOM and the
Secretary Finance, GoK is the
other Member of BESCOM
Board. Therefore, all the
decisions of BESCOM are
collectively taken by the Board,
cclxxx
which includes Government
functionaries. The Board reviews
the decision taken earlier and
corrective actions are taken to
prevent the Company from
incurring losses.
Commission’s Views: The reply furnished by BESCOM is noted.
128. BESCOM is requested to shift the overhead line
passing through the coconut and areca
gardens at its cost.
These objections are not related
to tariff determination exercise
Commission’s Views: The reply of the BESCOM is acceptable.
cclxxxi
ANNEXURE-1
ESCOMS’ TOTAL APPROVED POWER PURCHASE FOR FY17
NAME OF THE GENERATING STATION
ENERGY
ALLOWE
D (MU)
CAPACIT
Y
CHARGES
(RS Cr)
ENERGY
CHARG
ES (RS
Cr)
TOTAL
COST
(RS Cr)
PER UNIT
RATE
(RS/
Kwh)
KPCL THERMAL STATIONS
RAICHUR THERMAL POWER STATION_RTPS 1-7 (7x210) 7538.53 619.64 2327.80 2947.44 3.91
RAICHUR THERMAL POWER STATION_RTPS 8 (1x250) 1510.85 211.06 454.42 665.49 4.40
BELLARY THERMAL POWER STATIONS_BTPS-1 (1x500) 2823.10 295.60 1035.95 1331.55 4.72
BELLARY THERMAL POWER STATIONS_BTPS-2 (1x500) 3054.06 444.06 1014.43 1458.49 4.78
BELLARY THERMAL POWER STATIONS_BTPS-3 (1x700) 2720.23 0.00 849.12 849.12 3.12
TOTAL KPCL THERMAL 17646.77 1570.36 5681.72 7252.08 4.11
CGS SOURCES
N.T.P.C-RSTP-I&II (3X200MW+3X500MW) 3246.74 197.69 739.53 937.23 2.89
N.T.P.C-RSTP-III (1X500MW) 819.69 75.28 192.48 267.76 3.27
NTPC-Talcher (4X500MW) 2765.03 213.25 400.36 613.61 2.22
Simhadri Unit -1 &2 (2X500MW) 1490.74 226.09 363.15 589.24 3.95
NTPC Tamilnadu Energy Company Ltd (NTECL)_Vallur TPS Stage I
&2 &3 (3X500MW) 1081.78 174.91 222.18 397.09 3.67
Neyveli Lignite Corporation_NLC TPS-II STAGE I (3X210MW) 950.35 68.49 228.93 297.41 3.13
Neyveli Lignite Corporation_NLC TPS-II STAGE 2 (4X210MW) 1280.64 105.25 308.49 413.73 3.23
Neyveli Lignite Corporation_NLC TPS I EXP (2X210MW) 731.33 90.16 182.73 272.90 3.73
Neyveli Lignite Corporation_NLC TPS2 EXP (2X250MW) 865.82 111.21 199.16 310.37 3.58
NLC TAMINADU POWER LIMITED (NTPL) (TUTICORIN) (2X500MW) 1442.76 185.27 371.08 556.34 3.86
MAPS (2X220MW) 249.31 0.00 49.86 49.86 2.00
Kaiga Unit 1&2 (2X220MW) 922.44 0.00 274.89 274.89 2.98
Kaiga Unit 3 &4 (2X200MW) 1001.80 0.00 298.54 298.54 2.98
NPCIL-Kudan Kulam Atomic Power Generating Station (KKNPP)
(1X1000MW) 1527.09 0.00 455.07 455.07 2.98
DVC-Unit-1 &2 Meja TPS (2x500MW) 1574.83 274.91 360.39 635.30 4.03
DVC-Unit-7 & 8-KODERMA TPS (2x500MW) 1574.83 261.62 349.87 611.49 3.88
TOTAL CGS 21525.17 1984.13 4996.71 6980.84 3.24
TOTAL MAJOR IPPS
UDUPI POWER CORPORATION LIMITED_UPCL (2x600) 7462.68 1325.73 1767.94 3093.67 4.15
KPCL HYDEL STATIONS
SHARAVATHI VALLEY PROJECT_SVP (10x103.5+2x27.5) 4203.20 20.49 182.11 202.60 0.48
MAHATMA GANDHI HYDRO ELECTRIC POWER HOUSE_MGHE
(4x21.6+4x13.2) 180.68 2.32 17.79 20.11 1.11
GERUSOPPA_GPH (SHARAVATHI TAIL RACE_STR) (4x60) 527.47 24.38 55.93 80.30 1.52
KALI VALLEY PROJECT_KVP (2x50+5x150+1x135) 2923.95 19.16 229.11 248.27 0.85
VARAHI VALLEY PROJECT_VVP (4x115+2x4.5) 1087.86 11.82 129.40 141.22 1.30
ALMATTI DAM POWER HOUSE_ADPH (1x15+5x55) 523.72 27.51 80.48 107.99 2.06
cclxxxii
BHADRA HYDRO ELECTRIC POWER HOUSE_BHEP
((1x2+2x12)+(1x7.2+1x6)) 65.15 1.14 29.76 30.90 4.74
KADRA POWER HOUSE_KPH (3x50) 355.25 19.15 47.57 66.72 1.88
KODASALLI DAM POWER HOUSE_KDPH (3x40) 325.56 12.00 34.43 46.42 1.43
GHATAPRABHA DAM POWER HOUSE_GDPH (2x16) 91.67 1.96 14.77 16.74 1.83
SHIVASAMUDRAM (4x4+6x3) & SHIMSHAPURA (2x8.6) HYDRO
STATIONS_SHIVA & SHIMSHA 310.76 3.54 27.46 31.00 1.00
MUNIRABAD POWER HOUSE (2x9+1x10) 109.63 0.43 8.68 9.11 0.83
TOTAL KPCL HYDRO 10704.90 143.90 857.48 1001.38 0.94
OTHERS
PRIYADARSHINI JURALA HYDRO ESLECTRIC STATION (6x39) 111.61 65.09 0.00 65.09 5.83
TUNGABHADRA DAM POWER HOUSE_TBPH (4x9+4x9) 32.47 2.64 0.00 2.64 0.81
TOTAL OTHER HYDRO 144.08 67.73 0.00 67.73 4.70
SHORT TERM POWER
SHORT TERM POWER 1108.80 0.00 558.84 558.84 5.04
NON-CONVENTIONAL ENERGY SOURCES
WIND-IPPS 3826.75 0.00 1368.74 1368.74 3.58
KPCL-WIND (9x0.225+10x0.230) 12.86 0.00 4.32 4.32 3.36
MINI HYDEL-IPPS 1344.12 0.00 450.45 450.45 3.35
CO-GEN/CAPTIVE 172.09 0.00 65.02 65.02 3.78
BIOMASS 196.60 0.00 97.72 97.72 4.97
SOLAR-IPP 1261.40 0.00 784.50 784.50 6.22
SOLAR-KPCL (YELESANDRA,ITNAL,YAPALDINNI,SHIMSHA)
(3x1+3x1+1x3x1x5) 32.89 0.00 19.63 19.63 5.97
TOTAL NCE 6846.71 0.00 2790.38 2790.38 4.08
TRANSMISSION CHARGES
PGCIL CHARGES 949.21 949.21 0.44
KPTCL CHARGES 3092.77 3092.77 0.47
SLDC & POSOCO CHARGES 19.99 19.99 0.003
TOTAL INCLUDING TRANSMISSION & LDC CHARGES 65439.11 5091.87 20715.0
2
25806.8
9 3.94
ESCOMS’ TOTAL APPROVED POWER PURCHASE FOR FY18
NAME OF THE GENERATING STATION
ENERGY
ALLOWED
(MU)
CAPACI
TY
CHARGE
S (RS Cr)
ENERGY
CHARGES
(RS Cr)
TOTAL
COST
(RS Cr)
PER UNIT
RATE
(RS/
Kwh)
KPCL THERMAL STATIONS
RAICHUR THERMAL POWER STATION_RTPS 1-7 (7x210) 6696.43 560.42 2109.13 2669.54 3.99
RAICHUR THERMAL POWER STATION_RTPS 8 (1x250) 1603.00 221.33 480.87 702.20 4.38
BELLARY THERMAL POWER STATIONS_BTPS-1 (1x500) 3241.00 330.35 1213.08 1543.43 4.76
BELLARY THERMAL POWER STATIONS_BTPS-2 (1x500) 3294.00 472.15 1116.01 1588.16 4.82
BELLARY THERMAL POWER STATIONS_BTPS-3 (1x700) 4489.07 459.67 1429.28 1888.95 4.21
TOTAL KPCL THERMAL 19323.50 2043.91 6348.37 8392.29 4.34
cclxxxiii
CGS SOURCES
N.T.P.C-RSTP-I&II (3X200MW+3X500MW) 3246.74 197.69 754.32 952.02 2.93
N.T.P.C-RSTP-III (1X500MW) 819.69 75.28 196.33 271.61 3.31
NTPC-Talcher (4X500MW) 2765.03 213.25 408.37 621.62 2.25
Simhadri Unit -1 &2 (2X500MW) 1490.74 226.13 370.41 596.55 4.00
NTPC Tamilnadu Energy Company Ltd (NTECL)_Vallur TPS Stage I
&2 &3 (3X500MW) 1081.78 176.33 226.63 402.96 3.72
Neyveli Lignite Corporation_NLC TPS-II STAGE I (3X210MW) 950.35 68.49 233.50 301.99 3.18
Neyveli Lignite Corporation_NLC TPS-II STAGE 2 (4X210MW) 1280.64 105.25 314.66 419.90 3.28
Neyveli Lignite Corporation_NLC TPS I EXP (2X210MW) 731.33 90.16 186.39 276.55 3.78
Neyveli Lignite Corporation_NLC TPS2 EXP (2X250MW) 865.82 111.21 203.14 314.36 3.63
NLC TAMINADU POWER LIMITED (NTPL) (TUTICORIN) (2X500MW) 1442.76 185.27 378.50 563.77 3.91
MAPS (2X220MW) 249.31 0.00 50.86 50.86 2.04
Kaiga Unit 1&2 (2X220MW) 922.44 0.00 280.39 280.39 3.04
Kaiga Unit 3 &4 (2X200MW) 1001.80 0.00 304.51 304.51 3.04
NPCIL-Kudan Kulam Atomic Power Generating Station (KKNPP)
(1X1000MW) 1527.09 0.00 464.17 464.17 3.04
DVC-Unit-1 &2 Meja TPS (2x500MW) 1574.83 274.91 367.60 642.51 4.08
DVC-Unit-7 & 8-KODERMA TPS (2x500MW) 1574.83 261.62 356.86 618.49 3.93
TOTAL CGS 21525.17 1985.60 5096.64 7082.24 3.29
TOTAL MAJOR IPPS
UDUPI POWER CORPORATION LIMITED_UPCL (2x600) 7462.68 1325.73 1803.30 3129.03 4.19
KPCL HYDEL STATIONS
SHARAVATHI VALLEY PROJECT_SVP (10x103.5+2x27.5) 5469.75 20.28 248.69 268.97 0.49
MAHATMA GANDHI HYDRO ELECTRIC POWER HOUSE_MGHE
(4x21.6+4x13.2) 195.03 2.32 20.00 22.32 1.14
GERUSOPPA_GPH (SHARAVATHI TAIL RACE_STR) (4x60) 567.27 24.35 62.23 86.58 1.53
KALI VALLEY PROJECT_KVP (2x50+5x150+1x135) 2987.82 18.88 245.91 264.79 0.89
VARAHI VALLEY PROJECT_VVP (4x115+2x4.5) 1103.85 11.67 137.97 149.64 1.36
ALMATTI DAM POWER HOUSE_ADPH (1x15+5x55) 447.48 27.51 70.91 98.42 2.20
BHADRA HYDRO ELECTRIC POWER HOUSE_BHEP
((1x2+2x12)+(1x7.2+1x6)) 63.36 1.14 30.59 31.73 5.01
KADRA POWER HOUSE_KPH (3x50) 355.41 19.15 49.59 68.74 1.93
KODASALLI DAM POWER HOUSE_KDPH (3x40) 330.66 12.00 36.43 48.43 1.46
GHATAPRABHA DAM POWER HOUSE_GDPH (2x16) 90.09 1.25 15.25 16.49 1.83
SHIVASAMUDRAM (4x4+6x3) & SHIMSHAPURA (2x8.6) HYDRO
STATIONS. 330.66 3.54 30.45 33.99 1.03
MUNIRABAD POWER HOUSE (2x9+1x10) 103.95 0.43 8.62 9.06 0.87
TOTAL KPCL HYDRO 12045.33 142.53 956.63 1099.16 0.91
OTHER HYDRO
PRIYADARSHINI JURALA HYDRO ESLECTRIC STATION (6x39) 111.61 68.99 0.00 68.99 6.18
cclxxxiv
TUNGABHADRA DAM POWER HOUSE_TBPH (4x9+4x9) 32.47 2.64 0.00 2.64 0.81
TOTAL OTHER HYDRO 144.08 71.64 0.00 71.64 4.97
NON-CONVENTIONAL ENERGY SOURCES
WIND-IPPS 3981.63 0.00 1424.99 1424.99 3.58
KPCL-WIND (9x0.225+10x0.230) 12.86 0.00 4.32 4.32 3.36
MINI HYDEL-IPPS 1344.81 0.00 450.68 450.68 3.35
CO-GEN/CAPTIVE 172.09 0.00 64.12 64.12 3.73
BIOMASS 262.15 0.00 135.15 135.15 5.16
SOLAR-IPP 2588.38 0.00 1314.95 1314.95 5.08
SOLAR-KPCL (YELESANDRA,ITNAL,YAPALDINNI,SHIMSHA)
(3x1+3x1+1x3x1x5) 32.89 0.00 19.63 19.63 5.97
TOTAL NCE 8394.81 0.00 3413.83 3413.83 4.07
TRANSMISSION CHARGES
PGCIL CHARGES 958.70 958.70 0.45
KPTCL CHARGES 3171.28 3171.28 0.46
SLDC & POSOCO CHARGES 25.80 25.80 0.00
TOTAL INCLUDING TRANSMISSION & LDC CHARGES 68895.57 5569.41 21774.55 27343.96 3.97
ESCOMS’ TOTAL APPROVED POWER PURCHASE FOR FY19
NAME OF THE GENERATING STATION
ENERGY
ALLOWED
(MU)
CAPACI
TY
CHARGE
S (RS Cr)
ENERGY
CHARGES
(RS Cr)
TOTAL
COST
(RS Cr)
PER UNIT
RATE
(RS/
Kwh)
KPCL THERMAL STATIONS
RAICHUR THERMAL POWER STATION_RTPS 1-7 (7x210) 6696.43 579.68 2151.31 2730.99 4.08
RAICHUR THERMAL POWER STATION_RTPS 8 (1x250) 1603.00 219.91 490.49 710.40 4.43
BELLARY THERMAL POWER STATIONS_BTPS-1 (1x500) 3241.00 336.83 1237.34 1574.17 4.86
BELLARY THERMAL POWER STATIONS_BTPS-2 (1x500) 3294.00 464.75 1138.33 1603.09 4.87
BELLARY THERMAL POWER STATIONS_BTPS-3 (1x700) 4611.00 464.76 1497.46 1962.23 4.26
YERMARUS THERMAL POWER STATION_YTPS (2x800) 1547.46 204.23 413.13 617.36 3.99
TOTAL KPCL THERMAL 20992.89 2270.16 6928.07 9198.23 4.38
CGS SOURCES
N.T.P.C-RSTP-I&II (3X200MW+3X500MW) 3246.74 197.69 769.41 967.10 2.98
N.T.P.C-RSTP-III (1X500MW) 819.69 75.28 200.26 275.54 3.36
NTPC-Talcher (4X500MW) 2765.03 213.25 416.53 629.79 2.28
Simhadri Unit -1 &2 (2X500MW) 1490.74 226.13 377.82 603.96 4.05
NTPC Tamilnadu Energy Company Ltd (NTECL)_Vallur TPS Stage I
&2 &3 (3X500MW) 1081.78 176.33 231.16 407.49 3.77
Neyveli Lignite Corporation_NLC TPS-II STAGE I (3X210MW) 950.35 68.49 238.17 306.66 3.23
cclxxxv
Neyveli Lignite Corporation_NLC TPS-II STAGE 2 (4X210MW) 1280.64 105.25 320.95 426.20 3.33
Neyveli Lignite Corporation_NLC TPS I EXP (2X210MW) 731.33 90.16 190.12 280.28 3.83
Neyveli Lignite Corporation_NLC TPS2 EXP (2X250MW) 865.82 111.21 207.21 318.42 3.68
NLC TAMINADU POWER LIMITED (NTPL) (TUTICORIN) (2X500MW) 1442.76 185.27 386.07 571.33 3.96
MAPS (2X220MW) 249.31 0.00 51.88 51.88 2.08
Kaiga Unit 1&2 (2X220MW) 922.44 0.00 285.99 285.99 3.10
Kaiga Unit 3 &4 (2X200MW) 1001.80 0.00 310.60 310.60 3.10
NPCIL-Kudan Kulam Atomic Power Generating Station (KKNPP)
(1X1000MW) 1527.09 0.00 473.46 473.46 3.10
DVC-Unit-1 &2 Meja TPS (2x500MW) 1574.83 274.91 374.95 649.86 4.13
DVC-Unit-7 & 8-KODERMA TPS (2x500MW) 1574.83 261.62 364.00 625.62 3.97
TOTAL CGS 21525.17 1985.60 5198.58 7184.17 3.34
TOTAL MAJOR IPPS
UDUPI POWER CORPORATION LIMITED_UPCL (2x600) 7462.68 1325.73 1839.36 3165.10 4.24
KPCL HYDEL STATIONS
SHARAVATHI VALLEY PROJECT_SVP (10x103.5+2x27.5) 5469.75 19.16 260.88 280.04 0.51
MAHATMA GANDHI HYDRO ELECTRIC POWER HOUSE_MGHE
(4x21.6+4x13.2) 195.03 2.32 20.83 23.16 1.19
GERUSOPPA_GPH (SHARAVATHI TAIL RACE_STR) (4x60) 567.27 24.35 64.43 88.78 1.57
KALI VALLEY PROJECT_KVP (2x50+5x150+1x135) 2987.82 18.78 258.39 277.17 0.93
VARAHI VALLEY PROJECT_VVP (4x115+2x4.5) 1103.85 9.89 144.98 154.87 1.40
ALMATTI DAM POWER HOUSE_ADPH (1x15+5x55) 447.48 27.36 73.19 100.54 2.25
BHADRA HYDRO ELECTRIC POWER HOUSE_BHEP
((1x2+2x12)+(1x7.2+1x6)) 63.36 1.14 32.33 33.47 5.28
KADRA POWER HOUSE_KPH (3x50) 355.41 19.15 51.70 70.85 1.99
KODASALLI DAM POWER HOUSE_KDPH (3x40) 330.66 11.69 37.98 49.67 1.50
GHATAPRABHA DAM POWER HOUSE_GDPH (2x16) 90.09 0.39 16.02 16.41 1.82
SHIVASAMUDRAM (4x4+6x3) & SHIMSHAPURA (2x8.6) HYDRO
STATIONS_SHIVA & SHIMSHA 330.66 3.54 31.75 35.29 1.07
MUNIRABAD POWER HOUSE (2x9+1x10) 103.95 0.43 8.68 9.11 0.88
TOTAL KPCL HYDRO 12045.33 138.20 1001.17 1139.37 0.95
OTHERS
PRIYADARSHINI JURALA HYDRO ESLECTRIC STATION (6x39) 111.61 73.13 0.00 73.13 6.55
TUNGABHADRA DAM POWER HOUSE_TBPH (4x9+4x9) 32.47 2.64 0.00 2.64 0.81
TOTAL OTHERS 144.08 75.78 0.00 75.78 5.26
NON-CONVENTIONAL ENERGY SOURCES
WIND-IPPS 4649.94 0.00 1669.14 1669.14 3.59
KPCL-WIND (9x0.225+10x0.230) 12.86 0.00 4.32 4.32 3.36
MINI HYDEL-IPPS 1443.36 0.00 483.69 483.69 3.35
CO-GEN/CAPTIVE 172.09 0.00 64.12 64.12 3.73
BIOMASS 262.15 0.00 135.15 135.15 5.16
SOLAR-IPP 3692.28 0.00 2076.14 2076.14 5.62
cclxxxvi
SOLAR-KPCL (YELESANDRA,ITNAL,YAPALDINNI,SHIMSHA)
(3x1+3x1+1x3x1x5) 32.89 0.00 19.63 19.63 5.97
NTPC- SOLAR 0.00 0.00 0.00 0.00 0.00
TOTAL NCE 10265.57 0.00 4452.20 4452.20 4.34
TRANSMISSION CHARGES
PGCIL CHARGES 968.29 968.29 0.45
KPTCL CHARGES 3472.60 3472.60 0.48
SLDC & POSOCO CHARGES 27.85 27.85 0.00
TOTAL INCLUDING TRANSMISSION & LDC CHARGES 72435.72 5795.47 23888.11 29683.58 4.10
cclxxxvii
ANNEXURE-2
APPROVED POWER PURCHASE FOR BESCOM - FY17
NAME OF THE GENERATING STATION
% SHARE
OF
ENERGY
ALLOWED
ENERGY
ALLOWE
D (MU)
CAPACI
TY
CHARGE
S (RS Cr)
ENERGY
CHARGE
S (RS Cr)
TOTAL
COST
(RS Cr)
PER UNIT
RATE
(RS/
Kwh)
KPCL THERMAL STATIONS
RAICHUR THERMAL POWER STATION_RTPS 1-7
(7x210) 67.41 5081.98 417.72 1569.25 1986.97 3.91
RAICHUR THERMAL POWER STATION_RTPS 8
(1x250) 47.79 722.00 100.86 217.16 318.02 4.40
BELLARY THERMAL POWER STATIONS_BTPS-1
(1x500) 47.79 1349.10 141.26 495.06 636.32 4.72
BELLARY THERMAL POWER STATIONS_BTPS-2
(1x500) 47.79 1459.47 212.21 484.78 696.98 4.78
BELLARY THERMAL POWER STATIONS_BTPS-3
(1x700) 47.79 1299.94 0.00 405.77 405.77 3.12
TOTAL KPCL THERMAL 56.17 9912.49 872.05 3172.02 4044.07 4.08
CGS SOURCES
N.T.P.C-RSTP-I&II (3X200MW+3X500MW) 47.79 1551.55 94.47 353.41 447.88 2.89
N.T.P.C-RSTP-III (1X500MW) 47.79 391.71 35.97 91.98 127.96 3.27
NTPC-Talcher (4X500MW) 47.79 1321.35 101.91 191.32 293.23 2.22
Simhadri Unit -1 &2 (2X500MW) 47.79 712.39 108.04 173.54 281.59 3.95
NTPC Tamilnadu Energy Company Ltd
(NTECL)_Vallur TPS Stage I, 2 &3 (3X500MW) 47.79 516.96 83.59 106.18 189.76 3.67
Neyveli Lignite Corporation_NLC TPS-II STAGE I
(3X210MW) 47.79 454.15 32.73 109.40 142.13 3.13
Neyveli Lignite Corporation_NLC TPS-II STAGE 2
(4X210MW) 47.79 611.99 50.29 147.42 197.71 3.23
Neyveli Lignite Corporation_NLC TPS I EXP
(2X210MW) 47.79 349.49 43.09 87.32 130.41 3.73
Neyveli Lignite Corporation_NLC TPS2 EXP
(2X250MW) 47.79 413.76 53.15 95.17 148.32 3.58
NLC TAMINADU POWER LIMITED (NTPL)
(TUTICORIN) (2X500MW) 47.79 689.47 88.54 177.33 265.86 3.86
MAPS (2X220MW) 47.79 119.14 0.00 23.83 23.83 2.00
Kaiga Unit 1&2 (2X220MW) 47.79 440.82 0.00 131.36 131.36 2.98
Kaiga Unit 3 &4 (2X200MW) 47.79 478.74 0.00 142.66 142.66 2.98
NPCIL-Kudan Kulam Atomic Power Generating
Station (KKNPP) (1X1000MW) 47.79 729.76 0.00 217.47 217.47 2.98
DVC-Unit-1 &2 Meja TPS (2x500MW) 47.79 752.58 131.37 172.22 303.60 4.03
DVC-Unit-7 & 8-KODERMA TPS (2x500MW) 47.79 752.58 125.02 167.19 292.22 3.88
TOTAL CGS 47.79 10286.42 948.17 2387.82 3335.99 3.24
TOTAL MAJOR IPPS
UDUPI POWER CORPORATION LIMITED_UPCL
(2x600) 47.79 3566.25 633.54 844.86 1478.40 4.15
KPCL HYDEL STATIONS
SHARAVATHI VALLEY PROJECT_SVP
(10x103.5+2x27.5) 12.59 529.14 2.58 22.93 25.50 0.48
MAHATMA GANDHI HYDRO ELECTRIC POWER
HOUSE_MGHE (4x21.6+4x13.2) 47.79 86.34 1.11 8.50 9.61 1.11
GERUSOPPA_GPH (SHARAVATHI TAIL RACE_STR)
(4x60) 47.79 252.07 11.65 26.73 38.38 1.52
KALI VALLEY PROJECT_KVP (2x50+5x150+1x135) 47.79 1397.29 9.15 109.49 118.64 0.85
VARAHI VALLEY PROJECT_VVP (4x115+2x4.5) 47.79 519.86 5.65 61.84 67.49 1.30
ALMATTI DAM POWER HOUSE_ADPH (1x15+5x55) 47.79 250.27 13.15 38.46 51.61 2.06
BHADRA HYDRO ELECTRIC POWER HOUSE_BHEP
(1x2+2x12)+(1x7.2+1x6) 47.79 31.13 0.54 14.22 14.77 4.74
KADRA POWER HOUSE_KPH (3x50) 47.79 169.77 9.15 22.73 31.88 1.88
KODASALLI DAM POWER HOUSE_KDPH (3x40) 47.79 155.58 5.73 16.45 22.18 1.43
cclxxxviii
GHATAPRABHA DAM POWER HOUSE_GDPH
(2x16) 47.79 43.81 0.94 7.06 8.00 1.83
SHIVASAMUDRAM (4x4+6x3) & SHIMSHAPURA
(2x8.6) HYDRO STATIONS 47.79 148.51 1.69 13.12 14.81 1.00
MUNIRABAD POWER HOUSE (2x9+1x10) 47.79 52.39 0.21 4.15 4.35 0.83
TOTAL KPCL HYDRO 33.97 3636.16 61.56 345.67 407.23 1.12
OTHERs
PRIYADARSHINI JURALA HYDRO ESLECTRIC
STATION (6x39) 47.79 53.34 31.10 0.00 31.10 5.83
TUNGABHADRA DAM POWER HOUSE_TBPH
(4x9+4x9) 47.79 15.52 1.26 0.00 1.26 0.81
TOTAL OTHERs 47.79 68.85 32.37 0.00 32.37 4.70
SHORT TERM POWER 47.79 529.87 0.00 267.06 267.06 5.04
RENEWABLE SOURCES
WIND-IPPS
2278.15 0.00 815.89 815.89 3.58
KPCL-WIND (9x0.225+10x0.230)
12.86 0.00 4.32 4.32 3.56
MINI HYDEL-IPPS
478.60 0.00 160.50 160.50 3.35
CO-GEN/CAPTIVE
0.00 0.00 0.00 0.00 0.00
BIOMASS
70.93 0.00 36.28 36.28 5.11
SOLAR-IPP
656.24 0.00 406.94 406.94 6.20
SOLAR-KPCL
(YELESANDRA,ITNAL,YAPALDINNI,SHIMSHA)
(3x1+3x1+1x3x1x5)
25.43 0.00 15.15 15.15 5.96
TOTAL RENEWABLE SOURCES
3522.21 0.00 1439.08 1439.08 4.09
TRANSMISSION CHARGES
PGCIL CHARGES 453.61 453.61 0.44
KPTCL CHARGES 1487.22 1487.22 0.47
SLDC CHARGES 9.17 9.17 0.00
TOTAL INCLUDING TRANSMISSION & LDC
CHARGES 47.79 31522.26 2547.69 10406.50 12954.19 4.11
APPROVED POWER PURCHASE FOR BESCOM - FY18
NAME OF THE GENERATING STATION
% SHARE
OF
ENERGY
ALLOWED
ENERGY
ALLOWED
(MU)
CAPACI
TY
CHARGE
S (RS Cr)
ENERGY
CHARGE
S (RS Cr)
TOTAL
COST
(RS Cr)
PER UNIT
RATE
(RS/
Kwh)
KPCL THERMAL STATIONS
RAICHUR THERMAL POWER STATION_RTPS 1-7
(7x210) 47.643 3190.373 266.999 1004.849 1271.847 3.987
RAICHUR THERMAL POWER STATION_RTPS 8
(1x250) 47.643 763.716 105.448 229.101 334.549 4.381
BELLARY THERMAL POWER STATIONS_BTPS-1
(1x500) 47.643 1544.106 157.387 577.947 735.334 4.762
BELLARY THERMAL POWER STATIONS_BTPS-2
(1x500) 47.643 1569.357 224.945 531.701 756.646 4.821
BELLARY THERMAL POWER STATIONS_BTPS-3
(1x700) 47.643 2138.723 219.001 680.951 899.952 4.208
TOTAL KPCL THERMAL 47.643 9206.275 973.780 3024.549 3998.329 4.343
CGS SOURCES
cclxxxix
N.T.P.C-RSTP-I&II (3X200MW+3X500MW) 47.643 1546.840 94.187 359.382 453.569 2.932
N.T.P.C-RSTP-III (1X500MW) 47.643 390.522 35.865 93.539 129.404 3.314
NTPC-Talcher (4X500MW) 47.643 1317.343 101.600 194.558 296.158 2.248
Simhadri Unit -1 &2 (2X500MW) 47.643 710.232 107.737 176.475 284.212 4.002
NTPC Tamilnadu Energy Company Ltd
(NTECL)_Vallur TPS Stage I &2 &3 (3X500MW) 47.643 515.392 84.009 107.972 191.981 3.725
Neyveli Lignite Corporation_NLC TPS-II STAGE I
(3X210MW) 47.643 452.772 32.629 111.248 143.877 3.178
Neyveli Lignite Corporation_NLC TPS-II STAGE 2
(4X210MW) 47.643 610.133 50.142 149.912 200.054 3.279
Neyveli Lignite Corporation_NLC TPS I EXP
(2X210MW) 47.643 348.427 42.956 88.801 131.757 3.781
Neyveli Lignite Corporation_NLC TPS2 EXP
(2X250MW) 47.643 412.502 52.984 96.784 149.768 3.631
NLC TAMINADU POWER LIMITED (NTPL)
(TUTICORIN) (2X500MW) 47.643 687.375 88.267 180.327 268.594 3.908
MAPS (2X220MW) 47.643 118.778 0.000 24.231 24.231 2.040
Kaiga Unit 1&2 (2X220MW) 47.643 439.478 0.000 133.584 133.584 3.040
Kaiga Unit 3 &4 (2X200MW) 47.643 477.284 0.000 145.075 145.075 3.040
NPCIL-Kudan Kulam Atomic Power Generating
Station (KKNPP) (1X1000MW) 47.643 727.548 0.000 221.145 221.145 3.040
DVC-Unit-1 &2 Meja TPS (2x500MW) 47.643 750.294 130.976 175.135 306.111 4.080
DVC-Unit-7 & 8-KODERMA TPS (2x500MW) 47.643 750.294 124.645 170.021 294.665 3.927
TOTAL CGS 47.643 10255.214 945.996 2428.188 3374.185 3.290
TOTAL MAJOR IPPS
UDUPI POWER CORPORATION LIMITED_UPCL
(2x600) 47.643 3555.437 631.618 859.142 1490.760 4.193
KPCL HYDEL STATIONS
SHARAVATHI VALLEY PROJECT_SVP
(10x103.5+2x27.5) 47.643 2605.948 9.664 118.483 128.147 0.492
MAHATMA GANDHI HYDRO ELECTRIC POWER
HOUSE_MGHE (4x21.6+4x13.2) 47.643 92.918 1.106 9.528 10.633 1.144
GERUSOPPA_GPH (SHARAVATHI TAIL RACE_STR)
(4x60) 47.643 270.264 11.602 29.648 41.250 1.526
KALI VALLEY PROJECT_KVP (2x50+5x150+1x135) 47.643 1423.484 8.996 117.157 126.153 0.886
VARAHI VALLEY PROJECT_VVP (4x115+2x4.5) 47.643 525.906 5.561 65.731 71.292 1.356
ALMATTI DAM POWER HOUSE_ADPH (1x15+5x55) 47.643 213.192 13.107 33.783 46.891 2.199
BHADRA HYDRO ELECTRIC POWER HOUSE_BHEP
((1x2+2x12)+(1x7.2+1x6)) 47.643 30.187 0.543 14.574 15.117 5.008
KADRA POWER HOUSE_KPH (3x50) 47.643 169.328 9.123 23.625 32.748 1.934
KODASALLI DAM POWER HOUSE_KDPH (3x40) 47.643 157.536 5.716 17.357 23.073 1.465
GHATAPRABHA DAM POWER HOUSE_GDPH
(2x16) 47.643 42.921 0.594 7.264 7.858 1.831
SHIVASAMUDRAM (4x4+6x3) & SHIMSHAPURA
(2x8.6) HYDRO STATIONS_SHIVA & SHIMSHA 47.643 157.536 1.688 14.506 16.195 1.028
MUNIRABAD POWER HOUSE (2x9+1x10) 47.643 49.525 0.205 4.109 4.315 0.871
TOTAL KPCL HYDRO 47.64 5738.74 67.91 455.76 523.67 0.91
OTHERs
PRIYADARSHINI JURALA HYDRO ESLECTRIC
STATION (6x39) 47.643 53.176 32.871 0.000 32.871 6.182
TUNGABHADRA DAM POWER HOUSE_TBPH
(4x9+4x9) 47.643 15.469 1.258 0.000 1.258 0.813
TOTAL OTHERs 47.643 68.645 34.129 0.000 34.129 4.972
ccxc
RENEWABLE SOURCES
WIND-IPPS 2314.510 0.000 828.160 828.160 3.578
KPCL-WIND (9x0.225+10x0.230) 12.860 0.000 4.320 4.320 3.56
MINI HYDEL-IPPS 478.600 0.000 160.500 160.500 3.354
CO-GEN/CAPTIVE 0.000 0.000 0.000 0.000 0.000
BIOMASS 70.930 0.000 36.280 36.280 5.115
SOLAR-IPP 1310.440 0.000 665.704 665.704 5.080
SOLAR-KPCL
(YELESANDRA,ITNAL,YAPALDINNI,SHIMSHA)
(3x1+3x1+1x3x1x5)
25.430 0.000 15.150 15.150 5.958
TOTAL RENEWABLE SOURCES
4212.770 0.000 1710.114 1710.114 4.059
TRANSMISSION CHARGES
PGCIL CHARGES 456.752 456.752 0.445
KPTCL CHARGES 1622.580 1622.580 0.491
SLDC CHARGES 13.200 13.200 0.004
TOTAL INCLUDING TRANSMISSION & LDC
CHARGES 47.643 33037.09 2653.43 10570.29 13223.72 4.003
APPROVED POWER PURCHASE FOR BESCOM - FY19
NAME OF THE GENERATING STATION
% SHARE
OF
ENERGY
ALLOWED
ENERGY
ALLOWED
(MU)
CAPACI
TY
CHARGE
S (RS Cr)
ENERGY
CHARGE
S (RS Cr)
TOTAL
COST
(RS Cr)
PER UNIT
RATE
(RS/
Kwh)
KPCL THERMAL STATIONS
RAICHUR THERMAL POWER STATION_RTPS 1-7 (7x210) 47.831 3202.971 277.266 1028.993 1306.259 4.078
RAICHUR THERMAL POWER STATION_RTPS 8 (1x250) 47.831 766.732 105.186 234.606 339.792 4.432
BELLARY THERMAL POWER STATIONS_BTPS-1 (1x500) 47.831 1550.204 161.110 591.834 752.944 4.857
BELLARY THERMAL POWER STATIONS_BTPS-2 (1x500)
47.831 1575.554 222.297 544.477 766.773 4.867
BELLARY THERMAL POWER STATIONS_BTPS-3 (1x700) 47.831 2205.489 222.302 716.253 938.555 4.256
YERMARUS THERMAL POWER STATION_YTPS (2x800) 47.831 740.167 97.683 197.605 295.289 3.989
TOTAL KPCL THERMAL 47.831 10041.118 1085.843 3313.768 4399.611 4.382
CGS SOURCES
N.T.P.C-RSTP-I&II (3X200MW+3X500MW) 47.831 1552.948 94.559 368.017 462.576 2.979
N.T.P.C-RSTP-III (1X500MW) 47.831 392.064 36.007 95.786 131.793 3.362
NTPC-Talcher (4X500MW) 47.831 1322.545 102.001 199.232 301.234 2.278
Simhadri Unit -1 &2 (2X500MW) 47.831 713.036 108.162 180.716 288.878 4.051
NTPC Tamilnadu Energy Company Ltd (NTECL)_Vallur TPS
Stage I &2 &3 (3X500MW) 47.831 517.428 84.341 110.566 194.907 3.767
Neyveli Lignite Corporation_NLC TPS-II STAGE I (3X210MW) 47.831 454.560 32.758 113.921 146.679 3.227
Neyveli Lignite Corporation_NLC TPS-II STAGE 2 (4X210MW) 47.831 612.542 50.340 153.514 203.855 3.328
ccxci
Neyveli Lignite Corporation_NLC TPS I EXP (2X210MW) 47.831 349.803 43.125 90.935 134.060 3.832
Neyveli Lignite Corporation_NLC TPS2 EXP (2X250MW) 47.831 414.131 53.193 99.109 152.303 3.678
NLC TAMINADU POWER LIMITED (NTPL) (TUTICORIN)
(2X500MW) 47.831 690.089 88.615 184.660 273.275 3.960
MAPS (2X220MW) 47.831 119.247 0.000 24.813 24.813 2.081
Kaiga Unit 1&2 (2X220MW) 47.831 441.214 0.000 136.794 136.794 3.100
Kaiga Unit 3 &4 (2X200MW) 47.831 479.169 0.000 148.561 148.561 3.100
NPCIL-Kudan Kulam Atomic Power Generating Station
(KKNPP) (1X1000MW) 47.831 730.421 0.000 226.459 226.459 3.100
DVC-Unit-1 &2 Meja TPS (2x500MW) 47.831 753.257 131.493 179.343 310.836 4.127
DVC-Unit-7 & 8-KODERMA TPS (2x500MW) 47.831 753.257 125.137 174.106 299.243 3.973
TOTAL CGS 47.831 10295.712 949.732 2486.533 3436.265 3.338
TOTAL MAJOR IPPS
UDUPI POWER CORPORATION LIMITED_UPCL (2x600) 47.831 3569.477 634.112 879.786 1513.898 4.241
KPCL HYDEL STATIONS
SHARAVATHI VALLEY PROJECT_SVP (10x103.5+2x27.5) 47.831 2616.238 9.164 124.784 133.947 0.512
MAHATMA GANDHI HYDRO ELECTRIC POWER HOUSE_MGHE
(4x21.6+4x13.2) 47.831 93.285 1.110 9.966 11.076 1.187
GERUSOPPA_GPH (SHARAVATHI TAIL RACE_STR) (4x60) 47.831 271.331 11.648 30.818 42.466 1.565
KALI VALLEY PROJECT_KVP (2x50+5x150+1x135) 47.831 1429.105 8.981 123.591 132.572 0.928
VARAHI VALLEY PROJECT_VVP (4x115+2x4.5) 47.831 527.983 4.730 69.345 74.075 1.403
ALMATTI DAM POWER HOUSE_ADPH (1x15+5x55) 47.831 214.034 13.086 35.005 48.091 2.247
BHADRA HYDRO ELECTRIC POWER HOUSE_BHEP
((1x2+2x12)+(1x7.2+1x6)) 47.831 30.306 0.545 15.465 16.011 5.283
KADRA POWER HOUSE_KPH (3x50) 47.831 169.996 9.159 24.729 33.888 1.993
KODASALLI DAM POWER HOUSE_KDPH (3x40) 47.831 158.158 5.593 18.166 23.759 1.502
GHATAPRABHA DAM POWER HOUSE_GDPH (2x16) 47.831 43.091 0.186 7.661 7.847 1.821
SHIVASAMUDRAM (4x4+6x3) & SHIMSHAPURA (2x8.6) HYDRO
STATIONS_SHIVA & SHIMSHA 47.831 158.158 1.695 15.186 16.881 1.067
MUNIRABAD POWER HOUSE (2x9+1x10) 47.831 49.720 0.206 4.152 4.358 0.877
TOTAL KPCL HYDRO 47.831 5761.407 66.103 478.868 544.972 0.946
OTHERs
PRIYADARSHINI JURALA HYDRO ESLECTRIC STATION (6x39) 47.831 53.386 34.981 0.000 34.981 6.552
TUNGABHADRA DAM POWER HOUSE_TBPH (4x9+4x9) 47.831 15.530 1.263 0.000 1.263 0.813
TOTAL OTHERs 47.831 68.917 36.244 0.000 36.244 5.259
RENEWABLE SOURCES
WIND-IPPS 2342.770 0.000 840.870 840.870 3.589
KPCL-WIND (9x0.225+10x0.230) 12.860 0.000 4.320 4.320 0.000
MINI HYDEL-IPPS 478.600 0.000 160.500 160.500 3.354
CO-GEN/CAPTIVE 0.000 0.000 0.000 0.000 0.000
BIOMASS 70.930 0.000 36.280 36.280 5.115
SOLAR-IPP 1980.220 0.000 1005.952 1005.952 5.080
SOLAR-KPCL (YELESANDRA,ITNAL,YAPALDINNI,SHIMSHA)
(3x1+3x1+1x3x1x5) 25.430 0.000 15.150 15.150 5.958
TOTAL RENEWABLE SOURCES 4910.810 0.000 2063.072 2063.072 4.201
ccxcii
TRANSMISSION CHARGES
PGCIL CHARGES 463.141 463.141 0.450
KPTCL CHARGES 1781.990 1781.990 0.514
SLDC CHARGES 14.290 14.290 0.004
TOTAL INCLUDING TRANSMISSION & LDC CHARGES 47.831 34647.44 2772.04 11481.45 14253.48 4.114
ccxciii
With ref. to
ACS
Sales-M URevenue Rs.
croresSales-M U
Revenue Rs.
crores
1 LT-1[fully subsidised
by GoK]*
Bhagya Jyothi/Kutir Jyothi
54.00 35.70 49.15 29.29 5.96 0.00 -3.87
2 LT-2(a)(i) Dom. / AEH - Applicable to Bruhat Bangalore
Mahanagara Palike(BBMP), Municipal
Corporations & all areas under Urban Local
Bodies . 6062.32 3475.95 5933.40 3093.34 5.21 -12.53 -15.91
3 LT-2(a)(ii) Dom. / AEH - Applicable to areas coming
under Village Panchayats 617.04 294.50 684.18 290.20 4.24 -28.83 -31.59
4 LT-2(b)(i) Pvt. Educational Institutions Bruhat Bangalore
Mahanagara Palike(BBMP), Municipal
Corporations & all areas under Urban Local
Bodies . 35.52 30.05 37.89 29.54 7.80 30.82 25.75
5 LT-2(b)(ii) Pvt. Educational Institutions Applicable to
areas coming under Village Panchayats 7.60 3.86 5.23 3.33 6.37 6.80 2.66
6 LT-3(i) Commercial - Application to Bruhat Bangalore
Mahanagara Palike(BBMP), Municipal
Corporations & all areas under Urban Local
Bodies . 1773.97 1623.19 1788.02 1572.54 8.79 47.57 41.85
7 LT-3(ii) Commercial - Applicable to areas coming
under Village Panchayats 178.23 158.30 154.42 125.76 8.14 36.64 31.35
8 LT-4(a)(i)* IP<=10HP
6932.30 2357.19 6739.18 1927.41 2.86 -52.01 -53.87
10 LT-4(b) IP>10HP3.95 3.05 2.88 1.19 4.13 -30.90 -33.58
11 LT-4 (c) (i) Pvt Nurseries, Coffee&Tea Plantations of
sanctioned load of 10 HP& below 5.17 1.85 6.07 2.23 3.67 -38.26 -40.65
12 LT-4 (c) (ii) Pvt Nurseries, Coffee&Tea Plantations of
sanctioned load above 10 HP. 0.00 0.00 0.00 0.00 0.00 0.00 0.00
13 LT-5(a) Industrial - Applicable to Bruhat Bangalore
Mahanagara Palike(BBMP), Municipal
Corporations 929.18 685.41 916.82 656.50 7.16 20.14 15.49
14 LT-5(b) Industrial - Applicable to all areas other than
those covered under LT5(a) 290.82 208.64 286.83 201.91 7.04 18.11 13.54
15 LT-6 Water supply 414.23 291.18 509.97 251.09 4.92 -17.39 -20.59
16 LT-6 Public lighting 370.38 254.60 370.38 241.60 6.52 9.45 5.21
17 LT-7 Temporary supply 185.94 201.32 185.94 213.88 11.50 93.00 85.53
17860.65 9624.79 17670.36 8639.82 4.89 -17.96 -21.14
1 HT-1 Water supply & sew erage 723.98 382.98 723.98 366.98 5.07 -14.95 -7.67 -11.97
2 HT-2(a)(i) Industrial - Applicable to Bangalore
Mahanagara Palike(BBMP) and Municipall
Corporation. 2432.03 1932.15 2442.89 1811.07 7.41 24.39 35.04 32.45
3 HT-2(a)(ii) Industrial - Applicable to areas other than
those under HT2(a) (i) 2300.00 1827.25 2300.58 1640.90 7.13 19.67 29.92 27.05
4 HT-2(b)(i) Commercial - Applicable to areas under
Bangalore Mahanagara Palike Municipal
Corporation. 2629.95 2481.94 2629.96 2383.23 9.06 52.04 65.06 61.59
5 HT-2(b)(ii) Commercial - Applicable to areas other than
those covered under HT2(b) (i) 204.06 192.58 204.05 185.35 9.08 52.41 65.46 61.83
6 HT-2( c) (i) Govt./ Aided Hospitals & Educational
Institutions 95.70 76.74 96.11 72.96 7.59 27.37 38.28 35.02
7 HT-2( c) (ii) Hospitals and Educational Institutions other
than covered under HT-2( c) (i) 144.58 115.94 144.17 107.38 7.45 24.97 35.67 33.38
8 HT-3(a)(i) Lift Irrigation - Applicable to Lift Irrigation
Schemes under Govt. Depts/ Govt. ow ned
Corporations. 51.63 14.32 74.11 14.82 2.00 -66.44 -63.57 -67.74
9 HT-3(a)(ii) Lift Irrigation - Applicable to Lift Irrigation
schemes Lift Irrigation Societies connected to
Urban/Express feeders. 1.54 1.25 2.21 0.73 3.30 -44.90 -40.19 -49.47
10 HT-3(a)(iii) Lift Irrigation - Applicable to Private lif t
irrigation schemes & L I societies other than
those covered under HT-3(a) (ii) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
11 HT - 3b Irrigation & Agriculture Farms,Govt.
Horticultural Farms, Pvt.Horticulture
Nurseries, Coffee, Tea,Cocanut & Arecanut 0.21 0.13 1.28 0.51 3.98 -32.89 -27.14 -29.79
12 HT-4(a) Residential Apartments - Colonies 104.50 73.93 104.50 65.25 6.24 4.76 13.73 11.16
13 HT-5 Temporary supply 78.53 86.39 78.54 114.37 14.56 144.33 165.25 162.47
Unbilled Revenue/ Additional Sales 913.00 595.84 0.00 0.00 0.00
9679.71 7781.44 8802.38 6763.56 7.68 28.92 39.96 36.85
27540.39 17406.22 26472.74 15403.38 5.82 -2.37
150.00 361.60
27540.39 17556.22 26472.74 15764.97 5.96 0.00
* Voltage w ise cost of supply per unit to: LT Rs: 6.20, HT Rs.5.49 & EHT- Rs.5.27 Page - 275
Level of
Cross
Subsidy in
% (EHT)
PROPOSED AND APPROVED REVENUE AND REALISATION AND LEVEL OF CROSS SUBSIDY FOR FY-17 OF BESCOM
With ref. to voltage
wise COS*
LT - TOTAL
shall raise demand & collect CDT of Rs.5.96/unit by BJ/KJ & Rs.2.86 /unit from IP set Consumers.
HT - TOTAL
TOTAL
Grand Total
* These categories are subsidised by GoK. In case subsidy is not released by the Gok in advance,BESCOM
Misc. Revenue
Level o f
C ro ss
Subsidy in %
Level of
Cross
Subsidy in
% (LT&HT)
Annexure- III
Sl No Category Description
Proposed by BESCOM Approved as per RST
Average
Realisation
in Rs. Per
Kwh
ccxciv
ANNEX - IV
ELECTRICITY TARIFF - 2017
K.E.R.C. ORDER DATED: 30th March 2016
Effective for the Electricity consumed from the first meter
reading date falling on or after 01.04.2016
Bangalore
Electricity Supply Company Ltd.,
ccxcv
ELECTRICITY TARIFF-2017
GENERAL TERMS AND CONDITIONS OF TARIFF:
(APPLICABLE TO BOTH HT AND LT)
1. Supply of power is subject to execution of agreement by the
Consumer in the prescribed form, payment of prescribed deposits
and compliance of terms and conditions as stipulated in the
Conditions of Supply of Electricity of the Distribution Licensees in
the State of Karnataka and Regulations issued under Electricity
Act 2003 at the time of supply and continuation of power supply is
subject to compliance of the said Conditions of Supply /
Regulations as amended from time to time.
2. The tariffs are applicable to only single point of supply unless
otherwise approved by the Licensee.
3. The Licensee does not bind himself to energize any installation,
unless the Consumer guarantees the minimum charges. The
minimum charge is the power supply charges in accordance with
the tariff in force from time to time. This shall be payable by the
Consumer until power supply agreement is terminated,
irrespective of the installation being in service or under
disconnection.
4. The tariffs in the schedule are applicable to power supply within
the Karnataka State.
5. The tariffs are subject to levy of Tax and Surcharges thereon as
may be decided by the State Government from time to time.
6. For the purpose of these tariffs, the following conversion table would be
used:
1 HP=0.746 KW. 1HP=0.878 KVA.
ccxcvi
7. The bill amount will be rounded off to the nearest Rupee, i.e., the bill
amount of 50 Paise and above will be rounded off to the next higher
Rupee and the amount less than 50 Paise will be ignored.
8. Use of power for temporary illumination in the premises already having
permanent power supply for marriages, exhibitions in hotels, sales
promotions etc., is limited to sanctioned load at the applicable
permanent power supply tariff rates. Temporary tariff rates will be
applicable in case the load exceeds sanctioned load as per the
Conditions of Supply of Electricity of the Distribution Licensees in the
State of Karnataka.
9. No LT power supply will be given where the requisitioned load is 50
KW/67 HP and above. This condition does not apply for installations
serviced under clause 3.1.1 of K.E.R.C. (Recovery of Expenditure for
supply of Electricity) Regulations, 2004 and its amendments from time to
time. The applicant is however at liberty to avail HT supply for lesser
loads. The minimum contract demand for HT supply shall be 25 KVA or
as amended from time to time by the Licensee with the approval of
KERC.
10. The Consumer shall not resell electricity purchased from the Licensee to
a third party except –
(a) Where the Consumer holds a sanction or a tariff provision for
distribution and sale of energy,
(b) Under special contract permitting the Consumer for resale of
energy in accordance with the provisions of the contract.
11. Non-receipt of the bill by the Consumer is not a valid reason for non-
payment. The Consumer shall notify the office of issue of the bill if the
same is not received within 7 days from the meter reading date.
Otherwise, it will be deemed that the bills have reached the Consumer
in due time.
12. The Licensee will levy the following charges for non-realization of each
Cheque.
ccxcvii
1 Cheque amount upto
Rs. 10,000/-
5% of the amount subject to a
minimum of Rs100/-
2 Cheque amount of
Rs. 10,001/- and upto
Rs. 1,00,000/-
3% of the amount subject to a
minimum of Rs500/-
3 Cheque amount above
Rs. 1 Lakh:
2% of the amount subject to a
minimum of Rs3000/-
13. In respect of power supply charges paid by the Consumer through
money order, Cheque /DD sent by post, receipt will be drawn and the
Consumer has to collect the same.
14. In case of any belated payment, simple interest at the rate of 1 % per
month will be levied on the actual No. of days of delay subject to a
minimum of Re.1/- for LT installation and Rs.100/- for HT installation. No
interest is however levied for arrears of Rs.10/- and less.
15. All LT Consumers, except BhagyaJyothi and KutirJyothi Consumers, shall
provide current limiter/Circuit Breakers of capacity prescribed by the
Licensee depending upon the sanctioned load.
16. All payments made by the Consumer will be adjusted in the following
order of priority: -
(a) Interest on arrears of Electricity Tax
(b) Arrears of Electricity Tax
(c) Arrears of Interest on Electricity charges
(d) Arrears of Electricity charges
(e) Current month’s dues
17. For the purpose of billing,
(i) the higher of the rated load or sanctioned load in respect of LT
installations which are not provided with Electronic Tri-Vector
meter,
(ii) sanctioned load or MD recorded, whichever is higher, in respect of
installations provided with static meter or Electronic Tri-Vector
meter or static meter, will be considered.
ccxcviii
Penalty and other clauses shall apply if sanctioned load is exceeded.
18. The bill amount shall be paid within 15 days from the date of
presentation of the bill failing which the interest becomes payable.
19. For individual installations, more than one meter shall not be provided
under the same tariff. Wherever two or more meters are existing for
individual installation, the sum of the consumption recorded by the
meters shall be taken for billing, till they are merged.
20. In case of multiple connections in a building, all the meters shall be
provided at one easily accessible place in the ground floor.
21. Reconnection charges: The following reconnection charges shall be
levied in case of disconnection and included in the monthly bill.
For reconnection of:
a Single Phase Domestic installations
under Tariff schedule LT 1 & LT2 (a)
Rs20/-per Installation.
b Three Phase Domestic installations
under Tariff schedule LT2 (a) and
Single Phase Commercial & Power
installations.
Rs50/-per Installation.
c All LT installations with 3 Phase supply
other than LT2 (a)
Rs100/- per Installation.
d All HT& EHT installations Rs. 500/-per
Installation.
22. Revenue payments up to and inclusive of Rs.10, 000/- shall be made by
cash or cheque or D.D and payments above Rs.10, 000/- shall be made
by cheque or D.D only. Payments under other heads of account shall
be made by cash or D.D up to and inclusive of Rs.10,000/- and
payment above Rs.10, 000/- shall be by D.D only.
Note: The Consumers can avail the facility of payment of monthly power
supply bill through Electronic clearing system (ECS)/ Credit cards / on
line E-Payment @ www.billjunction.com at counters wherever such
facility is provided by the Licensee in respect of revenue payments
up to the limit prescribed by the RBI.
ccxcix
23. For the types of installations not covered under any Tariff schedules, the
Licensee is permitted to classify such installations under appropriate Tariff
schedule under intimation to the K.E.R.C.
24. Seasonal Industries
Applicable to all Seasonal Industries.
i) The industries that intend to avail this benefit shall have Electronic Tri-
Vector Meter installed to their installations.
ii) ‘Working season’ months and ‘off-season’ months shall be determined
by an order issued by the Executive Engineer of the concerned O&M
Division of the Licensee as per the request of the Consumer and will
continue from year to year unless otherwise altered. The Consumer
shall give a clear one month’s notice in case he intends to change his
‘working season’.
iii) The consumption during any month of the declared off-season shall
not be more than 25% of the average consumption of the previous
working season.
iv) The ‘Working season’ months and ‘off-season’ months shall be full–
calendar months. If the power availed during a month exceeds the
allotment for the ‘off-season’ month, it shall be taken for calculating
the billing demand as if the month is the ‘working season’ month.
v) The Consumer can avail the facility of ‘off-season’ up to six months in
a calendar year not exceeding in two spells in that year. During the
‘off-season’ period, the Consumer may use power for administrative
offices etc., and for overhauling and repairing plant and machinery.
25. Whether an institution availing Power supply can be considered as
charitable or not will be decided by the Licensee on the production
of certificate Form-12 A from the Income Tax department.
26 Time of the Tariff (ToD)
ccc
The Commission as decided in the earlier tariff orders, decides to
continue compulsory Time of Day Tariff for HT2 (a) and HT2 (b) and HT2(c)
consumers with a contract demand of 500 KVA and above. Further, the
optional ToD will continue as existing for HT2 (a),HT2 (b) and HT 2(C)
consumers with contract demand of less than 500 KVA. Also the ToD for
HT1 consumers on optional basis would continue as existing earlier.
Details of ToD tariff are indicated under the respective tariff category.
27. SICK INDUSTRIES:
The Government of Karnataka has extended certain reliefs for
revival/rehabilitation of sick industries under the New Industrial Policy
2001-06 vide G.O. No. CI 167 SPI 2001, dated 30.06.2001. Further, the
Government of Karnataka has issued G.O No.CI2 BIF 2010, dated
21.10.2010. The Commission, in its Tariff Order 2002, has accorded
approval for implementation of reliefs to the sick industries as per the
Government policy and the same was continued in the subsequent
Tariff Orders. In view of issue of the G.O No.CI2 BIF 2010, dated
21.10.2010, the Commission has accorded approval to ESCOMs for
implementation of the reliefs extended to sick industrial units for their
revival / rehabilitation on the basis of the orders issued by the
Commissioner for Industrial Development and Director of Industries &
Commerce, Government of Karnataka.
28. Incentive for Prompt Payment / Advance Payment: An incentive at the
rate of 0.25% of such bill shall be given to the following Consumers by
way of adjustment in the subsequent month’s bill:
(i) In all cases of payment through ECS.
(ii) And in the case of monthly bills exceeding Rs.1, 00,000/- (Rs. one
lakh), if the payment is made 10 days in advance of the due
date.
(iii) Advance Payment exceeding Rs 1000/-made by the Consumers
towards monthly bills.
ccci
29. Conditions of Supply of Electricity of the Distribution Licensees in the
State of Karnataka and amendments issued thereon from time to time
and Regulations issued under Electricity Act 2003 will prevail over the
extract given in this tariff book in the event of any discrepancy.
30. Self-Reading of Meters:
The Commission has approved Self-Reading of Meters by Consumers and
issue of bills by the Licensee based on such readings and the Licensee shall
take the reading at least once in six months and reconcile the difference, if
any and raise the bills accordingly. This procedure may be implemented by
the Licensee as stipulated under Section 26.01 of Conditions of Supply of
Electricity of the Distribution Licensees in the State of Karnataka.
---00---
cccii
ELECTRICITY TARIFF - 2017
PART-1
HIGH TENSION SUPPLY
Applicable to Bulk Power Supply of
Voltages at 11KV (including 2.3/4.6
KV) and above at Standard High
Voltage or Extra High Voltages when
the Contract Demand is 50 KW / 67 HP
and above.
ccciii
ELECTRICITY TARIFF –2017
PART-1
HIGH TENSION SUPPLY
Applicable to Bulk Power Supply at Voltages of 11KV (including 2.3/4.6
KV) and above at Standard High Voltage or Extra High Voltages when
the Contract Demand is 50 KW / 67 HP and above.
CONDITIONS APPLICABLE TO BILLING OF HT INSTALLATIONS:
1. Billing Demand
A) The billing demand during unrestricted period shall be the maximum
demand recorded during the month or 75% of the CD, whichever is
higher.
B) When the Licensee has imposed demand cut of 25% or less, the
conditions stipulated in (A) shall apply.
C) When the demand cut is in excess of 25%, the billing demand shall be
the maximum demand recorded or 75% of the restricted demand,
whichever is higher.
D) If at any time the maximum demand recorded exceeds the CD or the
demand entitlement, or opted demand entitlement during the period of
restrictions, if any, the Consumer shall pay for the quantum of excess
demand at two times the normal rate per KVA per month as deterrent
charges as per Section 126(6) of Electricity Act 2003. For over drawal
during the billing period, the penalty shall be two times the normal rate.
ccciv
E) During the periods of disconnection, the billing demand shall be 75% of
CD, or 75% of the demand entitlement that would have been
applicable, had the installation been in service, whichever is less. This
provision is applicable only, if the installation is under disconnection for
the entire billing month.
F) During the period of energy cut, the Consumer may get his demand
entitlement lowered, but not below the percentage of energy
entitlement, (For example, in case the energy entitlement is 40% and the
demand entitlement is 80%, the re-fixation of demand entitlement
cannot be lower than 40% of the CD). The benefit of lower demand
entitlement will be given effect to from the meter reading date of the
same month, if the option is exercised on or before 15th of the month. If
the option is exercised on or after 16th of the month, the benefit will be
given effect to from the next meter reading date. The Consumer shall
register such option by paying processing fee of Rs.100/- at the
Jurisdictional sub-division office.
(i) The billing demand in such cases, shall be the “Revised (Opted)
Demand Entitlement” or, the recorded demand, whichever is higher.
Such option for reduction of demand entitlement, is allowed only
once during the entire span of that particular “Energy Cut Period”.
The Consumer, can however, opt for a higher demand entitlement
up to the level permissible under the demand cut notification, and
the benefit will be given effect to from the next meter reading date.
Once the Consumer opts for enhancement of demand, which has
been reduced under Clause (F), no further revision is permitted during
that particular energy cut period.
(ii) The opted reduced demand entitlement will automatically cease to
be effective, when the energy cut is revised. The facility for reduction
and enhancement can however be exercised afresh by the
Consumer as indicated in the previous paras.
G) For the purpose of billing, the billing demand of 0.5 KVA and above will
be rounded off to the next higher KVA, and billing demand of less than
0.5 KVA shall be ignored.
2. Power factor (PF)
cccv
It shall be the responsibility of the HT Consumer to determine the
capacity of PF correction apparatus and maintain an average PF of not
less than 0.90.
(i) The specified P.F. is 0.90. If the power factor goes below 0.90 Lag,
a surcharge of 3 Paise per unit consumed will be levied for every
reduction of P.F. by 0.01 below 0.90 Lag.
(ii) The power factor when computed as the ratio of KWh / KVAh will
be determined up to 3 decimals (ignoring figures in the other
decimal places), and then rounded off to the nearest second
decimal as illustrated below:
(a) 0.8949 to be rounded off to 0.89
(b) 0.8951 to be rounded off to 0.90
In respect of Electronic Tri-Vector meters, the recorded average PF over
the billing period shall be considered for billing purposes. If the same is
not available, the ratio of KWh to KVAh consumed in the billing month
shall be considered.
3. Rebate for supply at high voltage:
If the Consumer is availing power at voltage higher than 13.2 KV, he will
be entitled to a rebate as indicated below:
Supply Voltage: Rebate
A) 33/66 KV 2 Paise/unit of energy consumed
B) 110 KV 3 Paise/unit of energy consumed
C) 220 KV 5 Paise/unit of energy consumed
The above rebate will be allowed in respect of all the installations of the
above voltage class, including the existing installations, and also for
installations converted from 13.2 KV and below to 33 KV and above and
also for installations converted from 33/66 KV to 110/220 KV, from the
next meter reading date after conversion / service / date of notification
of this Tariff order, as the case may be. The above rebate is applicable
only on the normal energy consumed by the Consumer including the
consumption under TOD Tariff, and is not applicable on any other
energy allotted and consumed, if any, viz.,
cccvi
i) Wheeled Energy.
ii) Any energy, including the special energy allotted over and
above normal entitlement.
iii) Energy drawal under special incentive scheme, if any.
The above rebate is not applicable for Railway Traction.
4. In respect of Residential Quarters / Colonies availing Bulk power supply
by tapping the main HT supply, the energy consumed by such Colony
loads, metered at single point, shall be billed under HT-4 tariff schedule.
No reduction in demand recorded in the main HT meter will be allowed.
5. Energy supplied may be utilized for all purposes associated with the
working of the installations, such as, Office, Stores, Canteens, Yard
Lighting, Water Supply and Advertisements within the premises.
6. Energy can also be used for construction, modification and expansion
purposes within the premises.
7. Power supply under HT-4 tariff schedule may be used for Commercial
and other purposes inside the colony for installations such as Canteen,
Club, Shop, Auditorium etc., provided, this load is less than 10% of the
CD.
8. In respect of Residential Apartments, availing HT Power supply under HT-4
tariff schedule, the supply availed for Commercial and other purposes
like Shops, Hotels, etc., will be billed under appropriate tariff schedule
(Only Energy charges) duly deducting such consumption in the main HT
supply bill. No reduction in the recorded demand of the main HT meter is
allowed. Common areas shall be billed at Tariff applicable to that of the
predominant Consumer category.
9. Seasonal Industries
a. The industries, which intend to utilize seasonal industry benefit, shall
conform to the conditionalities under Para no. 24of the General terms
and conditions of tariff (applicable to both HT & LT).
b. The industries that intend to avail this benefit shall have Electronic Tri-
Vector Meter fitted to the installation.
cccvii
c. Monthly charges during the working season, shall be the demand
charges on 75% of the contract demand, or the recorded maximum
demand during the month, whichever is higher, plus the energy
charges
d. Monthly charges during the off season shall be demand charges on
the maximum demand recorded during the month or 50% of the CD
whichever is higher plus the energy charges.
[
TARIFF SCHEDULE HT-1
Applicable to Water Supply, Drainage / Sewerage water treatment plant and
Sewerage Pumping installations, belonging to Bangalore Water Supply and
Sewerage Board, Karnataka Urban Water Supply and Sewerage Board, other
local bodies, State and Central Government.
[
RATE SCHEDULE
Demand charges Rs.190 /kVA of billing demand/month
Energy charges 450 paise/unit [
TOD Tariff at the option of the Consumer
Time of Day Increase (+) / reduction (-) in energy
charges over the normal tariff applicable
22.00 Hrs to 06.00 Hrs (-) 125 paise per unit
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs + 100 paise per unit
Note: Energy supplied to residential quarters availing bulk supply by the
above category of Consumer, shall be metered separately at a
single point, and the energy consumed shall be billed at HT-4
Tariff. No reduction in the demand recorded in the main HT meter
will be allowed.
TARIFF SCHEDULE HT-2(a)
Applicable to Industries, Factories, Workshops, Research & Development
Centres, Industrial Estates, Milk dairies, Rice Mills, Phova Mills, Roller Flour
Mills, News Papers, Printing Press, Railway Workshops/KSRTC Workshops/
Depots, Crematoriums, Cold Storage, Ice & Ice-cream mfg. Units,
Swimming Pools of local bodies, Water Supply Installations of KIADB and
other industries, all Defence Establishments. Hatcheries, Poultry Farm,
Museum, Floriculture, Green House, Bio Technical Laboratory, Hybrid
Seeds processing Units, Stone Crushers, Stone cutting, Bakery Product
Manufacturing Units, Mysore Palace illumination, Film Studios, Dubbing
Theatres, Processing, Printing, Developing and Recording Theaters, Tissue
cccviii
Culture, Aqua Culture, Prawn Culture, Information Technology Industries
engaged in development of Hardware & Software, Information
Technology (IT) enabled Services / Start-ups (As defined in GOI
notification dated 17.04.2015) / Animation / Gaming / Computer
Graphics as certified by the IT & BT Department of GOK/GOI, Drug Mfg.
Units, Garment Mfg. Units, Tyre retreading units, Nuclear Power Projects,
Stadiums maintained by Government and local bodies, also Railway
Traction, Effluent treatment plants and Drainage water treatment plants
owned other than by the local bodies, LPG bottling plants, petroleum
pipeline projects, Piggery farms, Analytical Lab for analysis of ore metals,
Saw Mills, Toy/wood industries, Satellite communication centers, and
Mineral water processing plants / drinking water bottling plants.
RATE SCHEDULE
HT-2(a)(i): Applicable to Areas under Bruhat Bangalore Mahangara
Palike (BBMP) and Municipal Corporations
Demand charges Rs.190 /kVA of billing demand / month
Energy charges
For the first one lakh units 625 paise per unit
For the balance units 675 paise per unit
Railway Traction and Effluent Treatment Plants
Demand charges Rs.190/kVA of billing demand/month
Energy Charges 590 paise per unit for all the units
Tariff applicable to Bangalore Metropolitan Railway Corporations
Ltd., (BMRCL)
Demand charges Rs.190/kVA of billing demand/month
Energy Charges 570 paise per unit for all the units
HT-2(a)(ii): Applicable to Areas other than those covered under HT-2(a)(i)
Demand charges Rs.180/kVA of billing demand/month
Energy charges
For the first one lakh units 620 paise per unit
For the balance units 660 paise per unit
cccix
Railway Traction and Effluent Treatment Plants
Demand charges Rs.190/kVA of billing demand/month
Energy Charges 590 paise per unit for all the units
TARIFF SCHEDULE HT-2(b)
Applicable to Commercial Complexes, Cinemas, Hotels, Boarding & Lodging,
Amusement Parks, Telephone Exchanges, Race Course, All Clubs, T.V.
Station, All India Radio, Railway Stations, Air Port, KSRTC bus stations, All
offices, Banks, Commercial Multi-storied buildings, APMC Yards, Stadiums
other than those maintained by Government and Local Bodies, Construction
power for irrigation, Power Projects and Konkan Railway Project, Petrol / Diesel
and Oil storage plants, I.T. based medical transcription centers, telecom, call
centers / BPO / KPO.
RATE SCHEDULE
HT-2 (b)(i): Applicable to Areas under Bruhat Bangalore Mahangara Palike
(BBMP) and Municipal Corporations.
Energy charges
For the first two lakh units 805 paise per unit
For the balance units 835 paise per unit
HT-2(b)(ii): Applicable to all areas other than those covered under HT-2(b)(i)
Energy charges
For the first two lakh units 785 paise per unit
For the balance units 815 paise per unit
TARIFF SCHEDULE HT-2(c)
RATE SCHEDULE
HT-2 (c) (i) - Applicable to Government Hospitals, Hospitals run by
Charitable Institutions, ESI hospitals, Universities and Educational Institutions
belonging to Government and Local bodies, Aided Educational Institutions
and Hostels of all Educational Institutions.
Demand charges Rs.210/kVA of billing demand/month
Demand charges Rs.200/kVA of billing demand/month
cccx
Demand charges Rs.180/kVA of billing demand/month
Energy charges
For the first one lakh units 600 paise per unit
For the balance units 650 paise per unit
RATE SCHEDULE
HT-2 (c) (ii) -Applicable to Hospitals and Educational Institutions other than
those covered under HT-2 (c) (i).
Demand charges Rs.180/kVA of billing demand/month
Energy charges
For the first one lakh units 700 paise per unit.
For the balance units 750 paise per unit.
Note: Applicable to HT-2 (a), HT-2 (b)& HT-2(c) Tariff Schedule.
1. Energy supplied may be utilized for all purposes associated
with the working of the installation such as offices, stores,
canteens, yard lighting, water pumping and advertisement
within the premises.
2. Energy can be used for construction, modification and
expansion purposes within the premises.
TOD Tariff applicable to HT 2(a), HT2 (b) and HT2(c) category.
Time of Day Increase + / reduction (-) in energy charges over
the normal tariff applicable
22.00 Hrs to 06.00 Hrs (-) 125 paise per unit.
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs + 100 paise per unit.
TARIFF SCHEDULE HT-3 (a)
Applicable to Lift irrigation Schemes/ Lift irrigation societies,
RATE SCHEDULE
HT-3 (a)(i): Applicable to LI schemes under Govt. Departments/
Govt. owned Corporations.
Energy charges/ Minimum Charges 200 paise per unit subject to an
annual minimum of Rs.1120 per
HP/Annum.
cccxi
HT-3(a)(ii): Applicable to Private LI schemes and Lift Irrigation societies fed
through express/ Urban feeders
Fixed Charges Rs.40 /HP/ per month of sanctioned
load
Energy charges 200 paise/unit
HT-3(a)(iii): Applicable to Private LI schemes and Lift Irrigation societies other
than those covered under HT-3 (a)(ii).
Fixed Charges Rs.20 /HP/ per month of sanctioned
load
Energy charges 200 paise/unit
TARIFF SCHEDULE HT-3 (b)
HT-3 (b): Applicable to Irrigation and Agricultural Farms, Government
Horticultural Farms, Private Horticulture nurseries, Coffee, Tea,
Rubber, Coconut & Arecanut Plantations.
RATE SCHEDULE
Energy charges / Minimum Charges 400 paise Per unit subject to an
annual minimum of Rs.1120/- per HP
of sanctioned load.
Note: These installations are to be billed on quarter yearly basis.
TARIFF SCHEDULE HT-4
Applicable to Residential apartments and colonies (whether situated outside or
inside the premises of the main HT Installation) availing power supply
independently or by tapping the main H.T. line. Power supply can be used for
residences, theatres, shopping facility, club, hospital, guest house, yard/street
lighting, canteen located within the colony.
RATE SCHEDULE
Applicable to all areas.
Demand charges Rs.110/- per kVA of billing demand/
month
Energy charges 585 paise/unit
cccxii
NOTE: (1) In respect of residential colonies availing power supply by tapping
the main H.T. supply,the energy consumed by such colony loads
metered at a single point, is to be billed at the above energy rate.
No reduction in the recorded demand of the main H.T. supply is
allowed.
(2) Energy under this tariff may be used for commercial and other
purposes inside the colonies, for installations such as, Canteens,
Clubs, Shops, Auditorium etc., provided, this commercial load is less
than 10% of the Contract demand.
(3) In respect of Residential Apartments, availing HT Power supply
under HT-4 tariff schedule, the supply availed for Commercial and
other purposes like Shops, Hotels, etc., will be billed under
appropriate tariff schedule (Only Energy charges), duly deducting
such consumption in the main HT supply bill. No reduction in the
recorded demand of the main HT meter is allowed. Common areas
shall be billed at Tariff applicable to the predominant Consumer
category.
TARIFF SCHEDULE HT-5
Tariff applicable to sanctioned load of 67 HP and above for hoardings
and advertisement boards and construction power for industries
excluding those category of consumers covered under HT2(b) Tariff
schedule availing power supply for construction power for irrigation and
power projects and also applicable to power supply availed on
temporary basis with the contract demand of 67 HP and above of all
categories.
[
HT – 5 – Temporary supply
RATE SCHEDULE
67 HP and above:
Fixed charges /
Demand Charges
Rs.220/HP/month for the entire sanction load /
contract demand
Energy Charge 950 paise / unit
HT-5 (a)- Temporary Supply
Applicable to power supply availed on temporary basis with the
contract demand of 67 HP and above by Bangalore International
Exhibition Centre.
cccxiii
RATE SCHEDULE
67 HP and above: Approved Tariff
Fixed Charges /
Demand Charges
Not Applicable
Energy Charges 1050 paise / unit
Note:
1. Temporary power supply with or without extension of distribution main
shall be arranged through a pre–paid energy meter duly observing the
provisions of Clause 12 of the Conditions of Supply of Electricity of the
Distribution Licensees in the State of Karnataka.
2. This Tariff is also applicable to touring cinemas having licence for
duration less than one year.
3. All the conditions regarding temporary power supply as stipulated in
Clause 12 of the Conditions of Supply of Electricity of the Distribution
Licensees in the State of Karnataka shall be complied with before
service.
---0---
cccxiv
ELECTRICITY TARIFF-2017
PART-II
LOW TENSION SUPPLY
(400 Volts Three Phase and
230Volts Single Phase Supply)
cccxv
ELECTRICITY TARIFF-2017
PART-II
LOW TENSION SUPPLY
(400 Volts Three Phase and
230Volts Single Phase Supply) CONDITIONS APPLICABLE TO BILLING OF LT INSTALLATIONS:
1. In case of LT Industrial / Commercial Consumers, Demand based Tariff at
the option of the Consumer, can be adopted. The Consumer is
permitted to have more connected load than the sanctioned load. The
billing demand will be the sanctioned load, or Maximum Demand
recorded in the Tri-Vector Meter during the month, whichever is higher. If
the Maximum Demand recorded is more than the sanctioned load,
penal charges at two times the normal rate shall apply.
2. Use of power within the Consumer premises for bona fide temporary
purpose is permitted, subject to the conditions that, total load of the
installation on the system does not exceed the sanctioned load.
3. Where it is intended to use power supply temporarily, for floor polishing
and such other portable equipments, in a premises having permanent
power supply, such equipments shall be provided with earth leakage
circuit breakers of adequate capacity.
4. The laboratory installations in educational institutions are allowed to
install connected machineries up to 4 times the sanctioned load. The
fixed charges shall however be on the basis of sanctioned load.
5. Besides combined lighting and heating, electricity supply under tariff
schedules LT2 (a) & LT2 (b), can be used for Fans, Televisions, Radios,
Refrigerators and other household appliances, including domestic water
pumps and air conditioners, provided, they are under single meter
connection. If a separate meter is provided for Air-conditioner load, the
cccxvi
Consumer shall be served with a notice to merge this load, and to have
a single meter for the entire load. Till such time, the air conditioner load
will be billed under Commercial Tariff.
6. Bulk LT supply
If power supply for lighting / combined lighting & heating {LT 2(a)}, is
availed through a bulk Meter for group of houses belonging to one
Consumer, (ie, Where bulk LT supply is availed), the billing for energy shall
be done at the slab rate for energy charges matching the consumption
obtained, by dividing the bulk consumption by number of houses. In
addition, fixed charges for the entire sanctioned load shall be charged
as per Tariff schedule.
7. A rebate of 25 Paise per unit will be given for the House/ School/Hostels
meant for Handicapped, Aged, Destitute and Orphans, Rehabilitation
Centres under Tariff schedule LT 2(a).
8. SOLAR REBATE: A rebate of 50 Paise per unit of electricity consumed
subject to a maximum of Rs. 50/- per installation per month will be
allowed to Tariff schedule LT 2(a), if solar water heaters are installed and
used. Where Bulk Solar Water Heater System is installed, Solar Water
Heater rebate shall be allowed to each of the individual installations,
provided that, the capacity of Solar Water Heater in such apartment /
group housing shall be a minimum capacity of 100 Ltr. per household.
9. A rebate of 20% on fixed charges and energy charges will be allowed in
the monthly bill in respect of public Telephone booths having STD/ISD/
FAX facility run by handicapped people, under Tariff schedule LT 3.
10. A rebate of 2 paise per unit will be allowed if capacitors are installed as
per Clause 23 of Conditions of Supply of Electricity of the Distribution
Licensees in the State of Karnataka in respect of all metered IP Set
Installations.
11. Power Factor (PF):
cccxvii
Capacitors of appropriate capacity of shall be installed in accordance
with Clause 23 of Conditions of Supply of Electricity of the Distribution
Licensees in the State of Karnataka, in case of installations covered
under Tariff category LT 3, LT4, LT 5, & LT 6, where motive power is
involved.
(i) The specified P.F. is 0.85. If the PF is found to be less than 0.85 Lag, a
surcharge of 2 Paise per unit consumed will be levied for every reduction
of P.F. by 0.01 below 0.85 Lag. In respect of LT installations, however, this
is subject to a maximum surcharge of 30 Paise per unit.
(ii) The power factor when computed as the ratio of KWh/KVA will be
determined up to 3 decimals (ignoring figures in the other decimal
places) and then rounded off to the nearest second decimal as
illustrated below:
(a) 0.8449 to be rounded off to 0.84
(b) 0.8451 to be rounded off to 0.85
(iii) In respect of Electronic Tri-Vector meters, the recorded average PF over
the billing period shall be considered for billing purposes.
(iv) During inspection, if the capacity of capacitors provided is found to be
less than what is stipulated in Conditions of Supply of Electricity of the
Distribution Licensees in the State of Karnataka, a surcharge of 30
Paise/unit will be levied in the case of installations covered under Tariff
categories LT 3, LT 5, & LT 6 where motive power is involved.
[
(v) In the case of installations without electronic Tri-vector meters even after
providing capacitors as recommended in Clause 23.01 and 23.03 of
Conditions of Supply of Electricity of the Distribution Licensees in the
State of Karnataka, if during any periodical or other testing / rating of the
installation by the Licensee, the PF of the installation is found to be lesser
than 0.85, a surcharge determined as above shall be levied from the
billing month following the expiry of Three months’ notice given by the
Licensee, till such time, the additional capacitors are installed and
informed to the Licensee in writing by the Consumer. This is also
applicable for LT installations provided with electronic Tri-vector meters.
12. All new IP set applicants shall fix capacitors of adequate capacity in
accordance with Clause 23 of Conditions of Supply of Electricity of the
Distribution Licensees in the State of Karnataka before taking service.
13. All the existing IP set Consumers shall also fix capacitors of adequate
capacity in accordance with Clause 23 of Conditions of Supply of
cccxviii
Electricity of the Distribution Licensees in the State of Karnataka, failing
which, PF surcharge at the rate of Rs.60/-per HP/ year shall be levied. If
the capacitors are found to be removed / not installed, a penalty at the
same rate as above (Rs. 60/-per HP / Year) shall be levied.
14. The Semi-permanent cinemas having Semi-permanent structure, with
permanent wiring and licence of not less than one year, will be billed
under commercial tariff schedule i.e., LT 3.
15. Touring cinemas having an outfit comprising cinema apparatus and
accessories, taken from place to place for exhibition of cinematography
films and also outdoor shooting units, will be billed under Temporary Tariff
schedule i.e., LT 7.
16. The Consumers under IP set tariff schedule, shall use the energy only for
pumping water to irrigate their own land as stated in the IP set
application / water right certificate and for bona fide agriculture use.
Otherwise, such installations shall be billed under appropriate Industrial /
Commercial tariff, based on the recorded consumption if available, or
on the consumption computed as per the Table given under Clause
42.06 of the Conditions of Supply of Electricity of the Distribution
Licensees in the State of Karnataka.
17. The water pumped for agricultural purposes may also be used by the
Consumer for his bona fide drinking purposes and for supplying water to
animals, birds, Poultry farms, Dairy farms and fish farms maintained by the
Consumer in addition to agriculture.
18. The motor of IP set installations can be used with an alternative drive for
other agricultural operations like sugar cane crusher, coffee pulping,
etc., with the approval of the Licensee. The energy used for such
operation shall be metered separately by providing alternate switch and
charged at LT Industrial Tariff (Only Energy charges) during the period of
alternative use. However, if the energy used both for IP Set and alternate
operation, is measured together by one energy meter, the energy used
for alternate drive shall be estimated by deducting the average IP Set
cccxix
consumption for that month, as per the IP sample meter readings for the
sub division, as certified by the sub divisional Officer.
19. The IP Consumer is permitted to use energy for lighting the pump house
and well limited to two lighting points of 40 Watts each.
20. Billing shall be made at least once in a quarter year for all IP sets.
21. In case of welding transformers, the connected load shall be taken as:
a) Half the maximum capacity in KVA as per the nameplate specified
under IS: 1851
OR
b) Half the maximum capacity in KVA as recorded during the rating by
the Licensee, whichever is higher.
22. Electricity under Tariff LT 3 / LT 5 can also be used for Lighting, Heating
and Air-conditioning, Yard-Lighting, water supply in the premises of
Commercial / Industrial Units respectively.
23. Fluorescent fittings shall be provided by the Licensee for the Streetlights
in the case of villages covered under the Licensee’s electrification
programme for initial installation.
In all other cases, the entire cost of fittings including Brackets, Clamps, etc.,
and labour for replacement, additions and modifications shall be met by the
organizations making such a request. Labour charges shall be paid at the
standard rates fixed by the Licensee for each type of fitting.
24. Lamps, fittings and replacements for defective components of fittings
shall be supplied by the concerned Village Panchayaths, Town
Panchayaths or Municipalities for replacement.
25. Fraction of KW / HP shall be rounded off to the nearest quarter KW / HP
for purpose of billing and the minimum billing being for 1 KW / 1HP in
respect of all categories of LT installations including I.P. sets. In the case
of street lighting installations, fraction of KW shall be rounded off to
nearest quarter KW for the purpose of billing and the minimum billing
shall be quarter KW.
cccxx
26. Seasonal Industries.
a) The industries who intend to utilize seasonal industry benefit, shall
comply with the conditionalities under Para no. 24of the General
terms and conditions of tariff (applicable to both HT & LT).
b) The industries that intend to avail this benefit shall have Electronic Tri-
Vector Meter fitted to their installation.
c) Monthly charges during the seasonal months shall be fixed charges
and energy charges. The monthly charges during the off seasonal
months shall be the energy charges plus 50% of the fixed charges.
TARIFF SCHEDULE LT-1
LT-1: Applicable to installations serviced under Bhagya jyothi and Kutira jyothi
(BJ/KJ) schemes.
RATE SCHEDULE
Energy charges
(including recovery towards
service main charges)
Nil*
Fully subsidized by the GOK
Commission Determined Tariff (CDT) for the above category i.e., LT-1 is Rs.5.96 per
unit.
*Since GOK is meeting the full cost of supply to BJ / KJ, the Tariff payable by these
Consumers is shown as Nil. However, if the GOK does not release the subsidy in
advance, CDT of Rs.5.96 per unit subject to monthly minimum of Rs.30/- per
installation per month shall be demanded and collected from these consumers.
Note: If the consumption exceeds 18 units per month or any BJ/KJ installation is
found to have more than one out let, it shall be billed as per Tariff
Schedule LT 2(a).
TARIFF SCHEDULE LT-2(a)
Applicable to lighting/combined lighting, heating and motive Power
installations of residential houses and also to such houses where a
portion is used by the occupant for (a) Handloom weaving (b) Silk
rearing and reeling and artisans using motors up to 200 watts (c)
cccxxi
Consultancy in (i) Engineering (ii) Architecture (iii) Medicine (iv)
Astrology (v) Legal matters (vi) Income tax (vii) Chartered Accountants
(d) Job typing (e) Tailoring (f) Post Office (g) Gold smithy (h)
Chawki rearing (i) Paying guests/Home stay guests (j) personal
Computers (k) Dhobis (l) Hand operated printing press (m) Beauty
Parlours (n) Water Supply installations, Lift which is independently
serviced for bonafide use of residential complexes/residence, (o) Farm
Houses and yard lighting limiting to 120 Watts, (p) Fodder Choppers &
Milking Machines with a connected load up to 1 HP.
Also applicable to the installations of (i) Hospitals, Dispensaries, Health
Centers run by State/Central Govt. and local bodies. (ii) Houses, schools
and Hostels meant for handicapped, aged destitute and orphans (iii)
Rehabilitation Centres run by charitable institutions, AIDS and drug
addicts Rehabilitation Centres (iv) Railway staff Quarters with single
meter(v) fire service stations.
It is also applicable to the installations of (a) Temples, Mosques,
Churches, Gurudwaras, Ashrams, Mutts and religious/Charitable
institutions (b) Hospitals, Dispensaries and Health Centres run by
Charitable institutions including X-ray units (c) Jails and Prisons (d)
Schools, Colleges, Educational institutions run by State/Central
Govt.,/Local Bodies (e) Seminaries (f) Hostels run by the Government,
Educational Institutions, Cultural, Scientific and Charitable Institutions(g)
Guest Houses/Travellers Bungalows run in Government buildings or by
State/Central Govt./Religious/Charitable institutions (h) Public libraries (i)
Silk rearing (j) Museums (k) Installations of Historical Monuments of
Archaeology Departments(l) Public Telephone Booths without
STD/ISD/FAX facility run by handicapped people (m) Sulabh / Nirmal
Souchalayas (n) Viswa Sheds having Lighting Loads only.
cccxxii
RATE SCHEDULE
LT-2(a)(i) : Applicable to areas coming under Bruhat Bangalore
Mahanagara Palike (BBMP), Municipal Corporations and
all other Urban Local Bodies.
Fixed charges per
month
For the first KW Rs.30/- per KW
For every additional KW Rs.40/- per KW
Energy charges
For 0 - 30 units (Lifeline
consumption)
300 paise/unit
31 to 100 units 440 paise /unit
101 to 200 units 590 paise /unit
Above 200 units 690 paise /unit
LT-2(a)(ii): Applicable to Areas under Village Panchayats
Fixed charges per
month
For the first KW Rs.20/- per KW
For every additional KW Rs.30/- per KW
Energy charges
For 0 - 30 units (Lifeline
consumption)
290 paise/unit
31 to 100 units 410 paise/unit
101 to 200 units 560 paise/unit
Above 200 units 640 paise/unit
TARIFF SCHEDULE LT-2(b)
Applicable to the installations of Private Professional and other Private
Educational Institutions including aided, unaided institutions, Nursing
Homes and Private Hospitals having only lighting or combined lighting &
heating, and motive power.
RATE SCHEDULE
LT-2(b)(i): Applicable to Areas under Bruhat Bangalore MahangaraPalike
(BBMP) and Municipal Corporations and all other urban Local Bodies.
Fixed charges Rs.45 per KW subject to a minimum of Rs.75 per
month
Energy charges
0 to 200 units 625 paise/unit
Above 200 units 745 paise/unit
LT-2(b)(ii): Applicable in Areas under Village Panchayats
cccxxiii
Fixed charges Rs.35 per KW subject to a minimum of Rs.60 per
month
Energy charges
0 to 200 units 570 paise/unit
Above 200 units 690 paise/unit
Note: Applicable to LT-2 (a), LT-2 (b) Tariff Schedules.
1 A rebate of 25 paise Per unit shall be given for installation of a house/
School/ Hostels meant for Handicapped, Aged, Destitute and Orphans,
Rehabilitation Centres run by Charitable Institutions.
2 (a) Use of power within the consumer’s premises for temporary purposes
for bonafide use is permitted subject to the condition that, the total
load of the installation on the system does not exceed the sanctioned
load.
(b) Where it is intended to use floor polishing and such other portable
equipment temporarily, in the premises having permanent supply, such
equipment shall be provided with an earth leakage circuit breaker of
adequate capacity.
3 The laboratory installations in educational institutions are allowed to install
connected machinery up to 4 times the sanctioned load. The fixed
charges shall however be on the basis of sanctioned load.
4. Besides lighting and heating, electricity supply under this schedule can be
used for fans, Televisions, Radios, Refrigerators and other house-hold
appliances including domestic water pump and air conditioners,
provided, they are under single meter connection. If a separate meter is
provided for Air conditioner Load, the consumption shall be under
commercial tariff till it is merged with the main meter.
5. SOLAR REBATE: A rebate of 50 paise per unit of electricity consumed to a
maximum of Rs.50/- per installation per month will be allowed to Tariff
schedule LT 2(a), if solar water heaters are installed and used. Where Bulk
Solar Water Heater System is installed, Solar Water Heater rebate shall be
allowed to each of the individual installations, provided that, the capacity
of Solar Water Heater in such apartment / group housing shall be a
minimum capacity of 100 Ltr, per household.
TARIFF SCHEDULE LT-3
cccxxiv
Applicable to Commercial Lighting, Heating and Motive Power
installations of Clinics, Diagnostic Centers, X-Ray units, Shops, Stores,
Hotels/Restaurants/Boarding and Lodging Homes, Bars, Private guest
Houses, Mess, Clubs, Kalyan Mantaps / Choultry, permanent Cinemas/
Semi Permanent Cinemas, Theatres, Petrol Bunks, Petrol, Diesel and oil
Storage Plants, Service Stations/ Garages, Banks, Telephone Exchanges.
T.V. Stations, Microwave Stations, All India Radio, Dish Antenna, Public
Telephone Booths/ STD, ISD, FAX Communication Centers, Stud Farms,
Race Course, Ice Cream Parlours, Computer Centres, Photo Studio /
colour Laboratory, Xerox Copiers, Railway Installation excepting Railway
workshop, KSRTC Bus Stations excepting Workshop, All offices, Police
Stations, Commercial Complexes, Lifts of Commercial Complexes,
Battery Charging units, Tyre Vulcanizing Centres, Post Offices, Bakery
shops, Beauty Parlours, Stadiums other than those maintained by Govt.
and Local Bodies.It is also applicable to water supply pumps and street
lights not covered under LT 6, Cyber cafés, Internet surfing cafés, Call
centers, I.T. based medical transcription centers, Private Hostels not
covered under LT -2 (a), Paying guests accommodation provided in an
independent / exclusive premises.
RATE SCHEDULE
LT-3 (i): Applicable in areas coming under Bruhat Bangalore Mahanagara
Palike(BBMP), Municipal Corporations and other urban local bodies
Fixed charges Rs.50 per KW
Energy charges
For 0 - 50 units 715 paise /unit
Above 50 units 815 paise /unit
Demand based tariff (optional) where sanctioned load
is above 5 KW but below 50 KW
Fixed charges Rs.65 per KW
Energy charges As above
cccxxv
RATE SCHEDULE
LT-3 (ii): Applicable in Areas under Village Panchayats
Fixed charges Rs.40 per KW per month
Energy charges For 0 - 50 units 665 paise /unit
Above 50 units 765 paise /unit
Demand based tariff (optional) where sanctioned load
is above 5 KW but below 50 KW
Fixed charges Rs.55 per KW per month
Energy charges As above
Note: 1. Besides Lighting, Heating and Motive power, electricity supply under
this Tariff can also be used for Yard lighting/ air Conditioning/water
supply in the premises.
2. The semi-permanent Cinemas should have semi-Permanent Structure
with permanent wiring and licence for duration of not less than one
year.
3. Touring Cinemas having an outfit comprising Cinema apparatus and
accessories taken from place to place for exhibition of
cinematography film and also outdoor shooting units shall be billed
under LT- 7 Tariff.
4. A rebate of 20% on fixed charges and energy charges shall be
allowed in the monthly bill in respect of telephone Booths having STD
/ ISD/FAX facility run by handicapped people.
5. Demand based Tariff at the option of the consumer can be adopted
as per Para 1 of the conditions applicable to LT installations.
TARIFF SCHEDULE LT-4 (a), LT-4 (b) & LT-4(c)
Applicable to (a) Agricultural Pump Sets including Sprinklers (b) Pump sets used
in (i) Nurseries of forest and Horticultural Departments (ii) Grass Farms and
Gardens (iii) Plantations other than Coffee, Tea, Rubber and Private Horticulture
Nurseries.
TARIFF SCHEDULE LT-4 (a)
Applicable to I.P. Sets up to and inclusive of 10 HP
RATE SCHEDULE
cccxxvi
Fixed charges Free
Energy charges
Commission Determined Tariff (CDT) for LT4 (a) category is 286 paise per unit
In case the GOK does not release the subsidy in advance in the manner specified
by the Commission in K.E.R.C. (Manner of Payment of subsidy) Regulations,
2008, CDT of 286 paise per unit shall be demanded and collected from these
consumers.
Note: This Tariff is applicable for Coconut and Arecanut plantations also.
TARIFF SCHEDULE LT-4 (b):
Applicable to IP sets above 10 HP
RATE SCHEDULE
Fixed charges Rs.40 per HP per month.
Energy charges 280 paise per unit
TARIFF SCHEDULE LT-4 (c) (i):
Applicable to Private Horticultural Nurseries, Coffee, Tea and Rubber
plantations of sanctioned load up to and inclusive of 10 HP.
RATE SCHEDULE
Fixed charges Rs.30 per HP per month.
Energy charges 280 paise per unit
TARIFF SCHEDULE LT-4 (c) (ii):
Applicable to Private Horticultural Nurseries, Coffee, Tea and Rubber
plantations of sanctioned load above 10 HP.
RATE SCHEDULE
Fixed charges Rs.40 per HP per month.
Energy charges 280 paise per unit
Note:
1) The energy supplied under this tariff shall be used by the consumers only for pumping water to irrigate their own land
as stated in the I.P. Set application / water right certificate and for bonafide agriculture use. Otherwise, such installations shall be billed under the appropriate Tariff (LT-3/ LT-5) based on the recorded consumption if available, or on the consumption computed as per the Table given under Clause 42.06 of the Conditions of Supply of Electricity of the Distribution Licensees in the State of Karnataka.
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2) The motor of IP set installations can be used with an alternative drive for other agricultural operations like sugar cane crusher, coffee pulping, etc., with the approval of the Licensee. The energy used for such operation shall be metered separately by providing alternate switch and charged at LT Industrial Tariff (Only Energy charges) during the period of alternative use. If the energy used both for IP Set and alternate operation, is however measured together by one energy meter, the energy used for alternate drive shall be estimated by deducting the average IP Set consumption for that month as per the IP sample meter readings for the sub division as certified by the sub divisional Officer.
3) The Consumer is permitted to use the energy for lighting the pump house and well limited to 2 lighting points of 40 W each.
4) The water pumped for agricultural purposes may also be used by the Consumer for his bonafide drinking purposes and for supplying water to animals, birds, Poultry farms, Dairy farms and fish farms maintained by the Consumer in addition to agriculture.
5) Billing shall be made at least once in a quarter year for all IP sets.
6) A rebate of 2 paise per unit will be allowed if capacitors are installed as per Clause 23 of Conditions of Supply of Electricity of the Distribution Licensees in the State of Karnataka in respect of all metered IP Set Installations.
7) Only fixed charges as in Tariff Schedule for Metered IP Set Installations shall be collected during the disconnection period of IP Sets under LT 4(a), LT 4(b) and LT 4(c) categories irrespective of whether the IP Sets are provided with Meters or not.
TARIFF SCHEDULE LT-5
Applicable to Heating & Motive power (including lighting) installations of
industrial Units, Workshops, Poultry Farms, Sugarcane Crushers, Coffee
Pulping, Cardamom drying, Mushroom raising installations, Flour, Huller &
Rice Mills, Wet Grinders, Milk dairies, Ironing, Dry Cleaners and Laundries
having washing, Drying, Ironing etc., Tailoring shop, Bulk Ice Cream and
Ice manufacturing Units, Coffee Roasting and Grinding Works, Cold
Storage Plants, Bakery Product Mfg. Units, KSRTC workshops/Depots,
Railway workshops, Drug manufacturing units and Testing laboratories,
Printing Presses, Garment manufacturing units, Bulk Milk vending Booths,
Swimming Pools of local Bodies, Tyre retreading units, Stone crushers,
Stone cutting, Chilly Grinders, Phova Mills, pulverizing Mills, Decorticators,
Iron & Red-Oxide crushing units, crematoriums, hatcheries, Tissue culture,
Saw Mills, Toy/wood industries, Viswa Sheds with mixed load sanctioned
under Viswa Scheme, Cinematic activities such as Processing, Printing,
Developing, Recording theatres, Dubbing Theatres and film studios,
Agarbathi manufacturing unit., Water supply installations of KIADB &
industrial units, Gem & Diamond cutting Units, Floriculture, Green House,
Biotech Labs., Hybrid seed processing units. Information Technology
industries engaged in development of hardware & Software, Information
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Technology (IT) enabled Services / Start-ups (As defined in GOI
notification dated 17.04.2015)/ Animation / Gaming / Computer
Graphics as certified by the IT & BT Department of GOK/GOI, Silk filature
units, Aqua Culture, Prawn Culture, Brick manufacturing units, Silk /
Cotton colour dying, Stadiums maintained by Govt. and local bodies,
Fire service stations, Gold / Silver ornament manufacturing units, Effluent
treatment plants, Drainage water treatment plants, LPG bottling plants
and petroleum pipeline projects, Piggery farms, Analytical Lab. for
analysis of ore metals, Satellite communication centers, Mineral water
processing plants / drinking water bottling plants and soda fountain
units.
RATE SCHEDULE
LT-5 (a): Applicable to Bruhat Bangalore Mahanagara Palike and other
Municipal Corporation.
i.Fixed charges
Fixed charges per
month
i) Rs.35 per HP for 5 HP & below
ii) Rs.35 per HP for above 5 HP & below 40 HP
iii)Rs.45 per HP for 40 HP & above but below 67 HP
iv)Rs.110 per HP for 67 HP & above
ii. Demand based Tariff (optional)
Fixed
charges
per month
Above 5 HP and less than 40 HP Rs.55per KW of billing demand
40 HP and above but less than
67 HP
Rs.75 per KW of billing demand
67 HP and above Rs.160 per KW of billing
demand
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iii. Energy Charges
0 to 500 units 510 paise/unit
Above 500 units 630 paise/unit
RATE SCHEDULE
LT-5 (b): Applicable to all Areas other than those covered under LT-5(a).
i. Fixed charges
Fixed Charges
per Month
i) Rs.30 per HP for 5 HP & below.
ii) Rs.35 per HP for above 5 HP & below 40 HP.
iii) Rs.40 per HP for 40 HP & above but below 67 HP.
iv)Rs.100 per HP for 67 HP & above.
ii. Demand based Tariff (optional)
Fixed
Charges
per
Month
Above 5 HP and less than 40 HP Rs.50 per KW of billing demand
40 HP and above but less than 67
HP
Rs.65 per KW of billing demand
67 HP and above Rs.150 per KW of billing
demand
iii. Energy Charges
0 to 500 units 485 paise /unit
501 to 1000 units 570 paise /unit
Above 1000 units 600 paise/unit
TOD Tariff applicable to LT5 (a) & (b):At the option of the Consumer
Time of Day Increase + / reduction (-) in energy
charges over the normal tariff applicable
22.00 Hrs to 06.00 Hrs (-) 125 paise per unit
06.00 Hrs to 18.00 Hrs 0
18.00 Hrs to 22.00 Hrs + 100 paise per unit
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NOTE:
1. DEMAND BASED TARIFF
In the case of LT Industrial Consumers, Demand based Tariff at the option of
the Consumer can be adopted. The Consumer is permitted to have more
connected load than the sanctioned load. The billing demand will be the
sanctioned load or Maximum Demand recorded in the Tri-Vector Meter
during the month whichever is higher. If the Maximum Demand recorded is
more than the sanctioned load, penal charges at two times the normal rate
shall apply.
2. Seasonal Industries: The industries which intend to utilize seasonal industry
benefit shall comply with the conditionalities under para no. 24of general
terms and conditions applicable to LT.
3. Electricity can also be used for lighting, heating, and air-conditioning in the
premises.
4. In the case of welding transformers, the connected load shall be taken as (a)
Half the maximum capacity in KVA as per the name plate specified under-
IS1851 or (b) Half the maximum capacity in KVA as recorded during rating
by the Licensee, whichever is higher.
TARIFF SCHEDULE LT-6
Applicable to water supply and sewerage pumping installations and
also applicable to water purifying plants maintained by Government
and Urban Local Bodies/ Grama Panchayats for supplying pure drinking
water to residential areas Public Street lights/Park lights of village
Panchayat, Town Panchayat, Town Municipalities, City Municipalities /
Corporations / State and Central Govt. / APMC, Traffic signals,
Survelliance Cameras at traffic locations belonging to Government
Department, subways, water fountains of local bodies. Also applicable to
Streetlights of residential Campus of universities, other educational
institutions, housing colonies approved by local bodies/development
authority, religious institutions, organizations run on charitable basis,
industrial area / estate and notified areas, also applicable to water
supply installations in residential Layouts, Street lights along with signal
lights including the gateman’s shed with associated equipment
provided at the Railway level crossing.
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RATE SCHEDULE
Water Supply- LT-6 (a)
Fixed charges Rs.45/HP/month
Energy charges 390Paise/unit
Public lighting- LT-6 (b)
Fixed charges Rs.60/KW/month
Energy charges 550 Paise/unit
Energy Charges for LED/ Induction Lighting 450 paise/unit
TARIFF SCHEDULE LT-7
Temporary Supply and Permanent Supply to Advertising Hoardings
TARIFF SCHEDULE LT-7(a)
Applicable to Temporary Power Supply for all purposes.
LT 7(a) Details Approved Tariff
Temporary Power
Supply for all
purposes.
Less than 67 HP:
Energy charge at 950 paise / unit subject
to a weekly minimum of Rs.170 per KW of
the sanctioned load.
TARIFF SCHEDULE LT-7(b)
Applicable to Hoardings & Advertisement boards, Bus Shelters with
Advertising Boards, Private Advertising Posts / Sign boards in the interest
of public such as Police Canopy Direction boards, and other sign boards
sponsored by Private Advertising Agencies / firms on permanent
connection basis.
LT 7(b) Details Approved Tariff
Power supply on
permanent
connection basis
Less than 67 HP:
Fixed Charges at Rs.50 per KW / month
Energy charges at 950 paise / unit
Note:
1. Temporary power supply with or without extension of distribution main shall
be arranged through a pre–paid energy meter duly observing the provisions
of Clause 12 of the Conditions of Supply of Electricity of the Distribution
Licensees in the State of Karnataka.
2. This Tariff is also applicable to touring cinemas having licence for duration less
than one year.
3. All the conditions regarding temporary power supply as stipulated in Clause
12 of the Conditions of Supply of Electricity of the Distribution Licensees in
the State of Karnataka shall be complied with before service.
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