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BIHAR ELECTRICITY REGULATORY
COMMISSION
Case No. TP – 02 of 2011
Order On:
Truing-up for FY 2010-11,
Review for FY 2011-12 &
Determination of
Aggregate Revenue Requirement (ARR)
And
Tariff for FY 2012-13
For Supply of Electricity to consumers in the
state
by Bihar State Electricity Board (BSEB)
Effective from 1st
April 2012
(Issued on 30th
March 2012)
Bihar Electricity Regulatory Commission Page iii
Contents
ORDER ............................................................................................................................................................ 1
1 Introduction ...................................... ..................................................................................................... 8
1.1 Bihar Electricity Regulatory Commission ........................................................................................... 8
1.2 Functions of BERC ........................................................................................................................... 8
1.3 Bihar State Electricity Board ............................................................................................................. 9
1.4 Chronology of the filing of tariff petitions and Issue of Tariff Orders .................................................. 10
1.5 Scope of the Order ......................................................................................................................... 11
2 Procedural History ................................ ............................................................................................... 13
2.1 Background ................................................................................................................................... 13
2.2 Information Gaps in the petition ...................................................................................................... 13
2.3 Inviting comments / suggestions from Public ................................................................................... 14
2.4 State Advisory Committee .............................................................................................................. 19
2.5 Public Hearing ............................................................................................................................... 19
2.6 Structure of the Order ..................................................................................................................... 20
3 Public Consultation Process ....................... ........................................................................................ 22
3.1 Introduction .................................................................................................................................... 22
3.2 Stakeholders Suggestions/ Objections, BSEB’s Response and Commission’s Views ....................... 22
4 True Up of FY 2010-11 ............................. ............................................................................................ 64
4.1 Background ................................................................................................................................... 64
4.2 True-up of ARR for FY 2010-11 ...................................................................................................... 64
4.3 Category wise energy sales ............................................................................................................ 65
4.4 Transmission and Distribution Losses ............................................................................................. 67
4.5 Own Generation ............................................................................................................................. 68
4.6 Power Purchase ............................................................................................................................. 69
4.7 Energy Balance.............................................................................................................................. 71
4.8 Own Generation Cost ..................................................................................................................... 73
4.9 Power Purchase Cost ..................................................................................................................... 76
4.10 Disincentive for non-achievement of T&D loss reduction Targets ..................................................... 78
4.11 Operation & Maintenance Expenses ............................................................................................... 79
4.12 Capital Expenditure ........................................................................................................................ 83
4.13 Gross Fixed Assets ........................................................................................................................ 85
4.14 Depreciation .................................................................................................................................. 86
4.15 Interest and Finance Charges ......................................................................................................... 87
4.16 Interest on Working Capital............................................................................................................. 92
4.17 Return on Equity (ROE) .................................................................................................................. 94
4.18 Taxes ...................................................................................................................................... 95
4.19 Other Debits & Extraordinary Items ................................................................................................. 95
4.20 Prior Period Credits / (Charges) ...................................................................................................... 95
4.21 Non-Tariff Income .......................................................................................................................... 97
4.22 Revenue from the sale of Power ................................................................................................... 100
4.23 Grant / Revenue Subsidy from State Government ......................................................................... 103
Bihar Electricity Regulatory Commission Page iv
4.24 Approved ARR and Revenue Gap for FY 2010-11 ......................................................................... 106
5 Review of FY 2011-12............................... .......................................................................................... 109
5.1 Background ................................................................................................................................. 109
5.2 Category wise Sales..................................................................................................................... 109
5.3 Transmission and Distribution Losses ........................................................................................... 111
5.4 BSEB’s Own generation ............................................................................................................... 112
5.5 Power Purchase ........................................................................................................................... 116
5.6 Energy Balance............................................................................................................................ 118
5.7 Operation & Maintenance Expenses (O&M) .................................................................................. 120
Employee Expenses ................................................................................................................................. 120
Repair & Maintenance Expenses (R&M) ................................................................................................... 123
Administration & General Expenses (A&G)................................................................................................ 124
Operation & Maintenance Expenses (O&M) .............................................................................................. 126
5.8 Capital Expenditure ...................................................................................................................... 126
5.9 Depreciation ................................................................................................................................ 130
5.10 Interest & Finance Charges .......................................................................................................... 132
5.11 Interest on Working Capital........................................................................................................... 135
5.12 Non-Tariff Income ........................................................................................................................ 137
5.13 Return on Equity .......................................................................................................................... 140
5.14 Revenue from Sale of Power at Existing Tariff for FY 2011-12 ....................................................... 141
5.15 Revenue from sale to Nepal & UI .................................................................................................. 142
5.16 Revenue from sale of Additional Power ......................................................................................... 143
5.17 Disincentive for non-achievement of T&D loss reduction Targets ................................................... 143
5.18 Resource gap funding received from State Government for FY 2011-12 ........................................ 144
5.19 Aggregate Revenue Requirement of BSEB for FY 2011-12 ........................................................... 145
6 Analysis of Aggregate Revenue Requirement for FY 20 12-13 .......................................................... 147
6.1 Background ................................................................................................................................. 147
6.2 Energy Sales ............................................................................................................................... 147
6.3 Consumption by Un-metered Categories ....................................................................................... 151
6.4 Kutir Jyoti (Rural and Urban) ........................................................................................................ 151
6.5 Domestic - I (Rural) (DS-I) ............................................................................................................ 155
6.6 Domestic Metered (Urban) - DS-II ................................................................................................. 156
6.7 Domestic - DS-III .......................................................................................................................... 157
6.8 Non-Domestic-I – Rural (NDS-I).................................................................................................... 157
6.9 Non-Domestic-II – Urban (NDS-II) ................................................................................................ 158
6.10 Non-Domestic –III (Religious Places) NDS-III ................................................................................ 159
6.11 Industrial LTIS-I & II...................................................................................................................... 159
6.12 Street Lighting (Public Lighting) SS-I, SS-II ................................................................................... 160
6.13 Irrigation and Agriculture Service (IAS-I & II) ................................................................................. 161
6.14 Public Water Works ...................................................................................................................... 162
6.15 HT Industry (HTS-I, HTS-II, HTS-III and HTSS) ............................................................................. 163
6.16 Railway Traction .......................................................................................................................... 164
6.17 Energy sales to Nepal (NEA) ........................................................................................................ 165
6.18 Total Energy Sales, No. of Consumers & Connected Load ............................................................ 165
6.19 Transmission & Distribution Losses (T&D Losses) ......................................................................... 168
Bihar Electricity Regulatory Commission Page v
6.20 BSEB’s Own generation ............................................................................................................... 175
6.21 Power Purchase ........................................................................................................................... 180
6.22 Energy Balance............................................................................................................................ 187
6.23 Operation & Maintenance Expenses (O&M) .................................................................................. 189
Employee Expenses ................................................................................................................................. 189
Repair & Maintenance Expenses (R&M) ................................................................................................... 193
Administration & General Expenses (A&G)................................................................................................ 195
Total Operation & Maintenance Cost ......................................................................................................... 196
6.24 Capital Expenditure ...................................................................................................................... 196
6.25 Depreciation ................................................................................................................................ 201
6.26 Interest & Finance Charges .......................................................................................................... 203
6.27 Interest on Working Capital........................................................................................................... 206
6.28 Non-Tariff Income ........................................................................................................................ 207
6.29 Return on Equity .......................................................................................................................... 211
6.30 Revenue from Sale of Power at Existing Tariff for FY 2012-13 ....................................................... 211
6.31 Revenue from sale to Nepal & UI .................................................................................................. 214
6.32 Revenue from sale of Additional Power ......................................................................................... 215
6.33 Resource gap funding for meeting cost of additional power purchase............................................. 216
6.34 Past Recoveries ........................................................................................................................... 217
6.35 Aggregate Revenue Requirement of BSEB for FY 2012-13 ........................................................... 218
6.36 Revenue at Approved Tariff .......................................................................................................... 219
6.37 Revenue Gap at Approved Tariff................................................................................................... 220
6.38 Average Tariff as percentage of Average Cost in Tariff Order for FY 2011-12 & FY 2012-13 ........... 222
7 Government grant/ revenue subsidy ................. ................................................................................ 224
7.1 Background ................................................................................................................................. 224
7.2 BSEB proposal and BERC approach toward Grant/ Revenue Subsidy from State Government in tariff petition .................................................................................................................................... 224
7.3 Clarification on the treatment of State Government Grant/ Revenue Subsidy.................................. 224
7.4 BSEB proposal and BERC approach toward Grant/ Revenue Subsidy from State Government in true-up process .................................................................................................................................... 225
7.5 Treatment of Grant/ Revenue Subsidy from State Government from FY 2012-13 onwards.............. 226
7.6 Mechanism for determination and recovery of Government subsidy support to Agriculture/ Rural consumers .................................................................................................................................... 227
8 Tariff Principles, Design and Tariff Schedule...... .............................................................................. 229
8.1 Background ................................................................................................................................. 229
8.2 Tariff changes proposed by BSEB ................................................................................................ 230
8.3 Changes in existing tariff categories/sub-categories proposed by BSEB ......................................... 231
8.4 Changes in tariff category and tariff schedule approved by the Commission ................................... 236
8.5 Category/Sub-category wise changes proposed by BSEB and approved by the Commission are discussed in respective sections. .............................................................................................................. 251
8.6 Approved tariff categories for FY2012-2013 .................................................................................. 255
8.7 TARIFF SCHEDULE FOR RETAIL TARIFF RATES AND TERMS AND CONDITIONS OF SUPPLY FOR FY 2012-13 .................................................................................................................................... 259
9 Status of Directives issued by the Commission ..... .......................................................................... 296
9.1 General .................................................................................................................................... 296
9.2 Directives issued in Tariff Order of FY 2012-13: Fresh Directives ................................................... 297
Bihar Electricity Regulatory Commission Page vi
9.3 Directives issued in Tariff Order of FY 2006-07 ............................................................................. 299
9.4 Directives issued in Tariff Order of FY 2008-09 ............................................................................. 322
9.5 Directives issued in Tariff Order of FY 2010-11 ............................................................................. 325
9.6 Directives issued in Tariff Order of FY 2011-12 ............................................................................. 330
10 Generation, Transmission, Wheeling Charges and Open Access Charges ................................... .. 333
10.1 Generation Tariff .......................................................................................................................... 333
10.2 Transmission Tariff ....................................................................................................................... 333
10.3 Wheeling Charges ........................................................................................................................ 333
10.4 Open Access Charges.................................................................................................................. 335
11 Renewable Purchase Obligation ..................... .................................................................................. 340
11.1 Background ................................................................................................................................. 340
11.2 Renewable Purchase Obligations (RPO) ....................................................................................... 340
11.3 Renewable energy Policy ............................................................................................................. 342
11.4 BERC (Renewable Purchase Obligation, its Compliance and REC Framework Implementation) Regulations, 2010 .................................................................................................................................... 343
11.5 Co-generation and Captive Power Policy ...................................................................................... 344
11.6 Renewable Potential .................................................................................................................... 344
11.7 Power purchase by BSEB under Renewable Purchase Obligations (RPO) ..................................... 345
11.8 Bihar Renewable Energy Development Agency (BREDA) .............................................................. 346
12 Annexures.......................................... ................................................................................................ 348
12.1 Annexure – I: State Advisory Committee ....................................................................................... 348
12.2 Annexure - II: List of Participant during the Public hearing. ............................................................ 355
Bihar Electricity Regulatory Commission Page vii
List of Table
Table 1: Schedule of issue of Public Notice in various newspapers ................................................................... 15 Table 2: List of Objectors ................................................................................................................................ 16 Table 3: Additional list of Objectors .................................................................................................................. 17 Table 4: Schedule for public hearing ................................................................................................................ 19 Table 5: Status of TOD tariff implemented in various states .............................................................................. 46 Table 6: Summary of Category-wise Sales for FY 2010-11 ............................................................................... 66 Table 7: Proposed T&D losses by BSEB for FY 2010-11 .................................................................................. 67 Table 8: Approved T&D Loss for FY 2010-11 ................................................................................................... 68 Table 9: Summary of BTPS Performance proposed by Petitioner for FY 2010-11.............................................. 68 Table 10: Summary of approved Generation performance for FY 2010-11 ........................................................ 69 Table 11: Source-wise Power Purchase Quantum for FY 2010-11 (MUs).......................................................... 70 Table 12: Proposed Energy Requirement & Energy balance for FY 2010-11 ..................................................... 71 Table 13: Approved Energy Requirement for FY 2010-11 ................................................................................. 72 Table 14: Proposed Plant parameters & Fuel cost determinants for BTPS ........................................................ 73 Table 15: Approved plant parameters & fuel cost determinants for FY 2010-11 ................................................. 75 Table 16: Proposed Power Purchase cost for FY 2010-11 ................................................................................ 76 Table 17: Trued-up Power Purchase Cost for FY 2010-11 (Rs. Cr.) .................................................................. 77 Table 18: Disincentive: Non-achievement of T&D loss reduction target for FY 2010-11 ..................................... 78 Table 19: Employee Cost approved for FY 2010-11 (Rs Cr.) ............................................................................ 80 Table 20: Summary of approved R&M cost (Rs. Cr.) ........................................................................................ 81 Table 21: Summary of approved A&G cost (Rs. Cr.) ........................................................................................ 82 Table 22: Summary of approved O&M expenses for FY 2010-11 (Rs. Cr.) ........................................................ 83 Table 23: Details of capitalisation during FY 2010-11 (Rs. Lakh) ...................................................................... 84 Table 24: Estimation of CWIP (Rs. Cr.) ............................................................................................................ 84 Table 25: Estimated Capital expenditure (Rs. Cr.) – FY 2010-11 ...................................................................... 84 Table 26: Asset added during FY 2010-11 in plant & machinery & Line & Cable N/W ........................................ 85 Table 27: Gross Fixed Assets (Rs. Cr.) – FY 2010-11 ...................................................................................... 86 Table 28: Approved Depreciation (Rs. Cr.) for FY 2010-11 ............................................................................... 86 Table 29: Interest & Financial Charges as per the petition for FY 2010-11 (Rs. Cr.)........................................... 87 Table 30: Estimation of loan against assets getting capitalized during FY 2010-11 (Rs. Cr) ............................... 91 Table 31: Computation of effective Rate of Interest for FY 2010-11 (Rs. Cr.) ..................................................... 91 Table 32: Approved Interest and finance charges for FY 2010-11 (Rs. Cr.) ....................................................... 92 Table 33: Proposed Interest on working capital for FY 2010-11 (Rs. Cr.) .......................................................... 92 Table 34: Summary of approved Interest on working capital (Rs. Cr.) ............................................................... 94 Table 35: Prior Period Credits / (Charges) for the FY 2010-11 (Rs. Cr.) ............................................................ 96 Table 36: Proposed Non-Tariff Income (Rs Cr.) for FY 2010-11 ........................................................................ 97 Table 37: Funding of DPS (Rs. Cr.) ................................................................................................................. 98 Table 38: Trued-up Non-Tariff Income approved (Rs. Cr.) ................................................................................ 99 Table 39: Non-Tariff Income (Rs. Cr.) .............................................................................................................. 99 Table 40; Details of FPPCA order issued by Commission during FY 2010-11 ................................................. 102 Table 41: Revenue through FPPCA (Rs. Cr.) ................................................................................................. 102 Table 42: Summary of Trued up ARR and Revenue gap for FY 2010-11 (Rs Cr.)............................................ 106 Table 43: Summary of the Carrying cost permitted (Rs Cr.) ............................................................................ 108 Table 44: Summary of revised Category-wise Sales (MUs) projected by BSEB for FY 2011-12 for BSEB ........ 109 Table 45: Proposed T&D losses as revised estimates for FY 2011-12 ............................................................ 111 Table 46: Approved T&D Loss for FY 2011-12 ............................................................................................... 112 Table 47 : Current Status of different units of BTPS ....................................................................................... 112 Table 48: Proposed Plant parameters & Fuel cost determinants for BTPS ...................................................... 113 Table 49: Fuel cost trend submitted by BSEB ................................................................................................ 115 Table 50: Approved Plant parameters of BTPS & fuel cost determinants for FY 2011-12 ................................. 115 Table 51: Power Purchase Cost Projected by the Petitioner for FY 2011-12 (RE) ............................................ 116 Table 52: Approved revised estimates of Power Purchase Cost for FY 2011-12 (RE) ...................................... 117 Table 53: Proposed Energy Requirement & Energy Balance .......................................................................... 119 Table 54: Approved Energy Requirement for FY 2011-12 (RE) ....................................................................... 120 Table 55: Employees Cost Proposed for FY 2011-12 (RE) (Rs Cr) ................................................................. 121 Table 56: Approved revised estimates of employee Cost for FY 2011-12 (RE) (Rs. Cr.) .................................. 122 Table 57: Function-wise employee Cost approved for FY 2011-12 (RE) (Rs Cr.) ............................................ 123 Table 58: R&M costs submitted by Petitioner for FY 2011-12 (RE) (Rs Cr) ..................................................... 123 Table 59: Approved revised estimates of R&M Cost for FY 2011-12 (RE) (Rs. Cr.) ......................................... 124 Table 60: Function-wise approved R&M costs for FY 2011-12 (RE) (Rs Cr) .................................................... 124 Table 61: A&G costs submitted by Petitioner for FY 2011-12 (Rs Cr) .............................................................. 125 Table 62: Function-wise approved revised estimates of A&G costs for FY 2011-12 (RE) (Rs. Cr) .................... 125 Table 63: Approved revised estimates of A&G Cost for FY 2011-12 (Rs. Cr.) .................................................. 125
Bihar Electricity Regulatory Commission Page viii
Table 64: Approved revised estimates of O&M Cost for FY 2011-12 (Rs. Cr.) ................................................. 126 Table 65: Planned Capital Expenditure proposed by BSEB for FY 2011-12..................................................... 127 Table 66: Funding details proposed by BSEB for FY 2011-12 (RE) ................................................................. 128 Table 67: Funding pattern considered by Commission during FY 2011-12 (Rs. Cr.) (RE) ................................ 129 Table 68: Capitalization schedule for proposed capital expenditure ................................................................ 129 Table 69: Capitalization schedule for CWIP ................................................................................................... 129 Table 70: Approved GFA by Commission FY 2011-12 (RE) ............................................................................ 130 Table 71: Approved GFA (Rs. Cr.) by Commission FY 2011-12 (RE) .............................................................. 130 Table 72: Revised estimate of Depreciation charges proposed by BSEB FY 2011-12 (RE).............................. 130 Table 73: Function wise revised Depreciation approved for FY 2011-12 (RE) (Rs Cr)...................................... 131 Table 74: Approved revised estimate of Depreciation (Rs. Cr.) charges for FY 2011-12 (RE) .......................... 131 Table 75: Proposed Interest & Financial Charges for FY 2011-12 (RE) ........................................................... 132 Table 76: Approved revised estimate of Interest & Finance Charges for FY 2011-12 (RE) (Rs Cr) ................... 134 Table 77: Approved revised estimate for Interest & Financial Charges for FY 2011-12 (RE) ............................ 135 Table 78: Methodology adopted by BSEB for calculation of Working Capital ................................................... 135 Table 79: Proposed revised estimates of Interest on Working Capital for FY 2011-12 (RE) (Rs Cr) .................. 135 Table 80: Approved function wise Revised estimate of Interest on Working Capital for FY 2011-12 (RE) (Rs Cr) .................................................................................................................................................................... 136 Table 81: Approved revised estimate of interest on working capital for FY 2011-12 (RE) (Rs. Cr.) ................... 136 Table 82: Break-up of proposed non-tariff income for FY 2011-12 (RE) (Rs. Cr.)............................................. 137 Table 83: Funding of DPS (Rs. Cr.) ............................................................................................................... 139 Table 84: Approved revised estimate of Non-Tariff Income FY 2011-12 (RE) (Rs. Cr.) .................................... 139 Table 85: Approved revised estimate of revenue through sale of power for FY 2011-12 (RE) .......................... 141 Table 86: Additional Revenue for the FY 2011-12 (RE) .................................................................................. 143 Table 87: Disincentive for non-achievement of T&D loss reduction target for FY 2009-10 ................................ 144 Table 88: Details of Resource gap funding from State Government (Rs. Cr.) .................................................. 144 Table 89: details of State Government revenue gap support (Rs. Cr.) ............................................................. 145 Table 90: Aggregate Revenue Requirement for the FY 2011-12 ..................................................................... 146 Table 91: Historical Trend in category-wise units sold (MUs) .......................................................................... 149 Table 92: Category-wise growth rates of sales ............................................................................................... 149 Table 93: Category-wise no. of consumers .................................................................................................... 149 Table 94: Category-wise growth rates of no. of Consumers ............................................................................ 150 Table 95: Category-wise connected load ....................................................................................................... 150 Table 96: Category‐wise growth rates of connected load ................................................................................ 151 Table 97: BPL consumption norms in other states ......................................................................................... 152 Table 98: Approved Kutir Jyoti Consumption for FY 2012-13 .......................................................................... 155 Table 99: Projected no. of consumers, connected load and energy sale - BSEB ............................................. 165 Table 100: Projected no. of consumers, connected load and energy sale – Premium tariff Area ...................... 166 Table 101: Projected no. of consumers, connected load & energy sale – Rest of Bihar .................................. 166 Table 102: Approved no. of consumers, connected load & energy sales of BSEB for FY 2012-13 ................... 168 Table 103: Trend of No. of Consumer, connected load, unit and amount billed................................................ 170 Table 104: T&D Losses of BSEB for previous years and projections ............................................................... 172 Table 105: T&D loss target Vs. Achievement by BSEB ................................................................................... 172 Table 106 : Current Status of different units of BTPS ..................................................................................... 175 Table 107: Proposed Plant parameters & Fuel cost determinants for BTPS .................................................... 176 Table 108: Month wise projected power generation from BTPS for FY 2012-13 .............................................. 177 Table 109: Fuel cost trend submitted by BSEB .............................................................................................. 177 Table 110: Approved Plant parameters of BTPS & fuel cost determinants for FY 2012-13 ............................... 179 Table 111: Power Purchase Cost Projected by the Petitioner for FY 2012-13 .................................................. 180 Table 112: Executed PPA with developer for power based on renewable energy ............................................ 182 Table 113: Proposals received for setting-up renewable energy plants ........................................................... 183 Table 114: Approved Power Purchase Cost for FY 2012-13 ........................................................................... 186 Table 115: Proposed Energy Requirement & Energy Balance ........................................................................ 187 Table 116: Approved Energy Requirement for FY 2012-13 (in MU) ................................................................. 188 Table 117: Employees Cost Proposed for FY 2012-13 (Rs Cr) ....................................................................... 191 Table 118: Function-wise employee Cost approved for FY 2012-13 (Rs Cr.) ................................................... 193 Table 119: R&M costs submitted by Petitioner for FY 2012-13 (Rs Cr)............................................................ 194 Table 120: Function-wise approved R&M costs for FY 2012-13 (Rs Cr) .......................................................... 194 Table 121: A&G costs submitted by Petitioner for FY 2012-13 (Rs Cr ............................................................. 195 Table 122: Function-wise approved A&G costs for FY 2012-13 (Rs Cr) .......................................................... 196 Table 123: Function-wise approved O&M costs for FY 2012-13 (Rs Cr) .......................................................... 196 Table 124: Planned Capital Expenditure proposed by BSEB for FY 2012-13................................................... 197 Table 125: Details of loan received with sanction letter ................................................................................... 198 Table 126: Funding details proposed by BSEB for FY 2012-13)...................................................................... 199 Table 127: Funding pattern considered by Commission for FY 2012-13 .......................................................... 200 Table 128: Capitalization schedule for proposed capital expenditure .............................................................. 200 Table 129: Capitalization schedule for CWIP ................................................................................................. 201 Table 130: Approved GFA by Commission FY 2012-13 (Rs. Cr.) .................................................................... 201
Bihar Electricity Regulatory Commission Page ix
Table 131: Depreciation charges proposed by BSEB (Rs. Cr.) ....................................................................... 202 Table 132: Function wise Depreciation approved for FY 2012-13 (Rs Cr)........................................................ 203 Table 133: Proposed Interest & Financial Charges for FY 2012-13 ................................................................. 204 Table 134: Approved revised estimate of Interest & Finance Charges for FY 2012-13 (Rs Cr) ......................... 205 Table 135: Approved revised estimate for Interest & Financial Charges for FY 2012-13 .................................. 206 Table 136: Methodology adopted by BSEB for calculation of Working Capital ................................................. 206 Table 137: Proposed Interest on Working Capital for FY 2012-13 (Rs Cr) ....................................................... 207 Table 138: Approved Interest on Working Capital for FY 2012-13 (Rs Cr) ....................................................... 207 Table 139: Break-up of proposed non-tariff income for FY 2012-13 (Rs.Cr.).................................................... 208 Table 140: Funding of DPS (Rs. Cr.) ............................................................................................................. 209 Table 141: Approved Non-Tariff Income for FY 2012-13 (Rs. Cr.) ................................................................... 210 Table 142: Revenue Projected for Premium tariff area, RoB and BSEB at existing tariff .................................. 211 Table 143: Revenue assessed for BSEB at existing tariff by Commission ....................................................... 213 Table 144: Additional Revenue for the FY 2012-13 ........................................................................................ 216 Table 145; Approved cost of additional power purchase through resource gap for FY 2012-13 ........................ 217 Table 146: Approved Revenue Gap/Surplus for FY 2006-07 to FY 2011-12 (Rs. Cr.) ...................................... 217 Table 147: Aggregate Revenue Requirement for the FY 2012-13 at existing tariff (Rs. Cr.) ............................. 218 Table 148: Function-wise breakup of ARR approved by Commission for FY 2012-13 (Rs. Cr.) ........................ 219 Table 149: Revenue from Sale of energy at Approved Tariff for FY 2012-13 ................................................... 219 Table 150: Revenue Gap at Approved Tariff for FY 2012-13 (Rs. Cr.) ............................................................. 220 Table 151: Revenue Gap at Approved Tariff for FY 2011-12 (Rs. Cr.) ............................................................. 221 Table 152: Cross-Subsidy in FY 2011-12 & FY 2012-13 ................................................................................. 222 Table 153: Details of Resource gap grant received from State Government .................................................... 224 Table 154: Subsidised categories in Tariff Order for FY 2012-13 .................................................................... 227 Table 155: Subsidy receivable from State Government for FY 2012-13........................................................... 228 Table 156: Generation Tariff Net generation (MUs) ........................................................................................ 333 Table 157: Transmission Tariff (in Paise/kWh) ............................................................................................... 333 Table 158: Wheeling charges at 33 kV Voltage Level ..................................................................................... 334 Table 159: Wheeling charges for 11 kV Voltage Level .................................................................................... 334 Table 160 : Phase Category of Consumers Open Access to be allowed from .................................................. 335 Table 161: Transmission Charge ................................................................................................................... 336 Table 162: Open Access Charges ................................................................................................................. 336 Table 163: Renewable Purchase obligation for BSEB .................................................................................... 344 Table 164: Co-generation Plants in Bihar ....................................................................................................... 344 Table 165: Technology wise potential & installed capacity in Bihar ................................................................. 344 Table 166: Details of Power Purchase from Renewable Source (MU) by BSEB .............................................. 345 Table 167: Members present during the SAC meeting.................................................................................... 348
Bihar Electricity Regulatory Commission Page xi
List of Abbreviations
A&G Administration and General
ABT Availability Based Tariff
Act Electricity Act, 2003 AG Auditor General ARR Aggregate Revenue Requirement
BERC Bihar Electricity Regulatory Commission BHEL Bharat Heavy Electrical Limited BHPC Bihar State Hydro Power Station BIFR Bureau of Industrial and Financial Reconstruction
BSEB Bihar State Electricity Board BTPS Barauni Thermal Power Station CAGR Compounded Annual Growth Rate CAPEX Capital Expenditure
CEA Central Electricity Authority CERC Central Electricity Regulatory Commission CGS Central Generating Station Ckt km Circuit kilometres
CMD Contract Minimum Demand CPSU Central Public Sector Undertaking D/C Double Circuit DPS Delayed Payment Surcharge
DS Domestic Service DSM Demand Side Management DT Distribution Transformer EA 2003 Electricity Act, 2003
ERLDC Eastern Region Load Despatch Centre ERPC Eastern Region Power Committee FC Fixed charges FPPCA Fuel and Power Purchase Cost Adjustment
FY Financial Year GFA Gross Fixed Asset GFA Gross Fixed Asset HP Horse Power
HT High Tension HTSS High Tension Specified Service KBUNL Kanti Bijlee Utapadan Nigam Limited kCal Kilo Calorie
KJ Kutir Jyoti KL Kilo Litre kVA Kilo Volt Ampere kVAh Kilo Volt Ampere Hour
Bihar Electricity Regulatory Commission Page xii
kWh Kilo Watt hour LT Low Tension
ml Millilitre MMC Monthly Minimum Charge MoP Ministry of Power MT Million Tonne
MUs Million Units MVA Mega Volt Ampere MW Mega Watt MYT Multi-Year Tariff
NDS Non Domestic Service NEP National Electricity Policy NFA Net Fixed Asset NHPC National Hydro Power Corporation
NTPC National Thermal Power Corporation O&M Operation and Maintenance O/H Over Head PGCIL Power Grid Corporation of India Limited
PLF Plant Load Factor PWW Public Water Works R&M Repair and Maintenance RE Revised Estimates
REA Regional Energy Accounting RGGVY Rajiv Gandhi Grameen Vidyutikaran Yojna RLDC Regional Load Despatch Centre RoE Return on Equity
S/C Single Circuit SAC State Advisory Committee SERC State Electricity Regulatory Commission SS Sub-station
ToD Time of Day TP Tariff Policy TPS Thermal Power Station UI Unscheduled Interchange
ULF Utilization Load Factor USO Universal Service Obligation
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 1
Bihar Electricity Regulatory Commission Ground Floor, Vidyut Bhawan – II
Jawahar Lal Nehru Marg, Patna – 800 021
Case No. TP - 02 of 2011
In the matter of:
Determination of Aggregate Revenue Requirement (ARR) and Retail Tariff for the Financial
Year 2012-13 for supply of electricity to consumers in the State of Bihar by the Bihar State
Electricity Board.
And
Bihar State Electricity Board ………………………………..…… Petitioner
Present:
U.N. Panjiar
S.C. Jha
– Chairman
– Member
ORDER (Passed on 30 th Day of March, 2012)
In exercise of the powers vested to Bihar Electricity Regulatory Commission under section
62(1)(d) read with Section 62(3) and Section 64 (3)(a) of the Electricity Act, 2003 and Bihar
Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff)
Regulations 2007 (hereinafter referred to as 'Tariff Regulations') and other enabling
provisions in this behalf, the Commission issues this order, truing up of the Aggregate
Revenue Requirement (ARR) and revenue for financial year (FY) 2010-11, Reviewing of
ARR and revenue for FY 2011-12 and determining the Aggregate Revenue Requirement
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 2
(ARR) and the Retail Tariff for the Financial Year 2012-13 for supply of electricity by the
Bihar State Electricity Board to the consumers in the state of Bihar. Tariff Regulations
specify that the Distribution Licensee shall file Aggregate Revenue Requirement (ARR) and
the Tariff Petition complete in all respect along with requisite fee as prescribed in the
Commission’s Fees, Fines and charges, Regulation on or before 15th November of the
preceding year. Accordingly the Licensee BSEB filed the ARR and Tariff Petition for the
financial year 2012-13 along with the petitions for review of ARR for FY 2011-12 on 15th
November, 2011 and subsequently BSEB filed petition for truing up of ARR and revenue for
financial year 2010-11 .
Regulation 22 of the Tariff Regulations, 2007 provides that the Commission shall undertake
a review along with next Tariff Order, of the expenses and revenue approved by the
Commission in the current year's Tariff Order. After audited accounts of the year are made
available, the Commission shall undertake a similar exercise based on the final actual
figures as per the audited accounts. Accordingly BSEB along with petition for determination
of ARR and retail tariff for FY 2012-13, has also submitted petitions for truing up of ARR and
revenue for FY 2010-11 based on the audited annual accounts for the year and for review of
the ARR for FY 2011-12.
As per Regulation 6(5) of the Tariff Regulation and for providing adequate opportunities to all
stakeholders and general public for making suggestions/objections on the tariff petition as
mandated under section 64(3) of the Electricity Act, 2003, the Commission directed BSEB
vide letter dated 28th November 2011 to publish the ARR and tariff petition for FY 2012-13 in
abridged form as public notice in newspapers having wide circulation in the State inviting
suggestions/objections on the tariff petition. The tariff petition was also placed on the BSEB's
website. Accordingly BSEB published the tariff petition in the abridged form as public notice
in various newspapers. The last date of submission of suggestions/objections was initially
fixed as 6th January, 2012 which was later on extended to 20th January, 2012 on the
request of some of the consumers/consumer associations.
The Commission, to ensure transparency in the process of tariff determination and for
providing proper opportunity to all stakeholders and general public for making
suggestions/objections on the tariff petition and for convenience of the consumers and
general public across the state, the Commission decided to hold the public hearing at all the
divisional headquarters of the state and accordingly the Commission held public hearing at
Darbhanga on 15th February 2012, Bhagalpur on 23rd February 2012, Purnea on 24th
February 2012, Gaya on 27th February 2012, Muzaffapur on 13th March 2012 and Patna on
14th & 19th March 2012.
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Bihar Electricity Regulatory Commission Page 3
The tariff proposal was also placed before the State Advisory Committee on 23rd December,
2011 and the various aspects were discussed by the Committee. The Commission took the
advice of the State Advisory Committee on the ARR and tariff petition of BSEB for FY 2012-
13 during the meeting of the Committee.
The Commission took into consideration the facts presented by the BSEB in its tariff petition
and subsequent various filings, the suggestions/objections received from stakeholders,
consumer organizations, general public and State Advisory Committee and response of the
Bihar State Electricity Board to those suggestions/objections.
The Commission taking into consideration all the facts which came up during the public
hearing and meeting of the State Advisory Committee has trued up the ARR and revenue for
FY 2010-11, reviewed the ARR and revenue for FY 2011-12 and determined the ARR and
retail tariff of the BSEB for FY 2012-13.
The true up of ARR and revenue for FY 2010-11 has indicated a surplus of Rs. 639.93
crores. The review of ARR and revenue for FY 2011-12 has given a surplus of Rs. 674.63
crores. Earlier true up for FY 2006-07, 2007-08, 2008-09 and 2009-10 had indicated a
cumulative gap of Rs. 491.87 crores.
The State Government has been giving resource gap grant to BSEB which has been used
for reducing the revenue gap of BSEB. This treatment of resource gap has the effect of
reducing the average tariff of all categories of consumers across the state till FY 2011-12.
The State Government vide letter No. 4208 dated 19th September, 2011 has clarified that
the resource gap grant being provided to the BSEB is meant for first compensating BSEB for
the financial loss incurred by BSEB on account of additional power purchase due to
difference in the actual T&D loss and the T&D losses as approved by the Commission and
the balance amount of resource gap grant will be used to subsidise the agricultural and rural
consumers. The resource gap grant estimated to be received during FY 2012-13 has been
used to first compensate BSEB for the financial losses caused to BSEB on account of
additional power purchase due to difference in the actual T&D losses and the T&D losses
approved by the Commission and the remaining portion of the grant has been used to
subsidise the agriculture and rural consumers. As a result of government subsidy, the tariff
rate of Agriculture, Kutir Jyoti, and other rural consumers has been retained at the level of
2011-12 and no increase has been approved.
The BSEB in its tariff petition for FY 2012-13 has proposed 10% premium on demand/fixed
and energy charge and in MMC for LT consumers except Kutir Jyoti and Agriculture and
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Bihar Electricity Regulatory Commission Page 4
HTS-I consumers for the PESU Area, Rajgir Area and Bodh Gaya Area in which BSEB
intends to supply continuous power at least for 600 hours in a month excluding the duration
of grid failure, plant failure of power supplier, any force majeure condition, scheduled shut
down, emergent breakdown and restriction of power supply by the Commission under
Section 23 of the Electricity Act, 2003. The Commission feels that the Distribution Licensee
cannot differentiate in making electric supply available to different areas. As per provisions of
the Act, there should be equitable distribution of available energy in different areas. So the
Commission directs the Board for equitable distribution of energy in different areas of the
State as far as possible. However, if the Board supplies or intends to supply power
continuously to some areas including Patna, this should not be done at the cost of supply to
other areas. BSEB can charge premium over the normal tariff from consumers of such areas
getting nearly 24 hours of supply from 33kV or 11 kV feeders to HTS-I and all LT consumers
except Kutir Jyoti and Agricultural consumers. The continuous supply shall mean the normal
supply for nearly 24 hours excluding the grid failure, any force majeure condition, scheduled
shut down and emergent breakdown beyond the control of BSEB. The Commission has
accordingly allowed 10% premium on fixed and energy charge and in MMC in tariff rate of
HTS- consumers and all LT consumers and 11 kV consumers except Kutir Jyoti and
Agricultural Consumers. The Board has to notify such areas after strengthening the
infrastructure required to ensure close to 24 hour supply to the notified areas. Strengthening
of infrastructure may include interalia strengthening/replacement of weak conductors,
transformers and other electrical equipments installed for supplying electricity to the notified
areas, provision of appliances and spares and keeping technical teams ready round the
clock for rectifying defects leading to disruption of supply in these areas. A few Telephones
should be kept operational for each notified area which should be manned round the clock
for receiving and responding to the complaints. These telephone numbers should be widely
publicised in the newspapers for the information of the general public. BSEB must ensure
these steps for ensuring close to 24 hours supply of electricity to the notified areas before
charging premium tariff.
BSEB in this tariff petition has proposed Transmission and Distribution loss of 42% for the
FY 2011-12 and 41% loss for FY 2012-13. The Commission has allowed the T&D losses at
29% for FY 2011-12 and 27.5% for FY 2012-13 as per approved trajectory. The financial
loss caused to BSEB due to the difference between the actual T&D loss as stated by the
Board and T&D losses approved by the Commission has been compensated from the
resource gap grant provided by the State Government.
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Bihar Electricity Regulatory Commission Page 5
The Commission has made Time of Day (TOD) tariff mandatory for consumers with contract
demand of 200KVA and above in the tariff order for FY 2011-12 which provides incentive for
consumption in off peak hours and disincentive for consumption of power in peak hours. The
Commission has considered this provision proper for demand side management and so this
provision has been retained in this tariff order also. For other HT consumers ToD Tariff has
been made optional.
The Commission has approved a new provision for Tatkal Connection on payment of
application fee and supervision, labour and establishment charge for service connection at
double the normal rate. Under the scheme a consumer may apply for new connection on
Tatkal basis and BSEB will provide Tatkal connection within half the period specified for
normal connection. If BSEB is not able to provide connection within the specified period then
the additional fee paid by the consumer will be refunded in the first energy bill.
The Commission has also allowed partial payment of energy bill as an option available to the
consumers.
The BSEB in its tariff petition has proposed various changes in the terms and conditions of
supply which the Commission has properly scrutinized and has considered
suggestions/objections of the stakeholders, consumers and general public and has
accordingly specified the terms and conditions of supply in this Tariff Order.
The Board has proposed to withdraw the facility of ten (10) days grace period after due date
of payment without any Delayed Payment Surcharge (DPS). The Commission considering
the suggestions of the consumers as well as State Advisory Committee, has retained the
provision of ten days grace period after due date of payment without levy of any Delayed
Payment Surcharge.
In the Tariff Order for FY 2011-12, the Commission had indicated the desirability of phasing
out the Monthly Minimum Charge (MMC). As a first step MMC was replaced by Annual
Minimum Guarantee (AMG) for HT consumers. Since the revenue from MMC/AMG from HT
consumers is only about 0.5% of the total revenue of the Board and metering/billings of the
HT consumers are monitored more closely because of their limited numbers, the
Commission has done away with the provision of MMC/AMG for HT consumers. Phasing out
of MMC/AMG for other categories of consumers will be considered gradually.
To encourage the consumers to avail power under ‘Open Access’ from other sources, the
Commission has reduced the cross subsidy surcharge by about 50% (fifty percent) in its
Tariff Order for FY 2011-12 which the Commission has retained during 2012-13 also.
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Bihar Electricity Regulatory Commission Page 6
As a result, the consumers have to pay cross subsidy surcharge at the rate of about 50% of
the rate approved in Tariff Policy 2006.
The provision of charging Fuel and Power Purchase Cost Adjustment (FPPCA) with the
approval of the Commission on a monthly basis which was introduced in the Tariff Order for
FY 2011-12 has been retained. FPPCA has been made applicable to all categories of
consumers without any exception. However, FPPCA levied on Kutir Jyoti and Agriculture
(Private) consumers will be subsidized with the subsidy available from State Government.
This order is in 12 chapters which also include True up for FY 2010-11, Review for 2011-12
and detailed analysis of the Aggregate Revenue Requirement (ARR) and approved Retail
Tariff Rates for the financial year 2012-13.
The ARR after incorporating surplus from previous years is Rs. 4747.22 crores. The revenue
gap at existing tariff as determined by the Commission is Rs. 1676.60 crores. To avoid sharp
increase in tariff rates, the Commission has approved a moderate increase of 12% in
average tariff which will fetch an additional revenue of Rs. 348.06 crores. The existing
average tariff is Rs.4.06 per unit which has now been increased to Rs. 4.55 per unit.
Considering the sale of intra-state revenue at approved tariff and sale outside the state,
revenue gap comes to Rs. 841.17 crores. Resource gap grant of Rs. 683.90 crore has been
used to subsidise Kutir Jyoti, Agriculture and other rural consumers to bring down their tariff
to the level of financial year 2011-12. As a result, the revenue gap at approved tariff has
come down to Rs. 157.26 crores. In order to avoid further increase in tariff, the revenue gap
of Rs. 157.26 crores is being approved as regulatory asset which will be recovered along
with carrying cost in the subsequent financial years after true up for FY 2011-12 and review
of the ARR for FY 2012-13 along with determination of ARR and retail tariff for FY 2013-14.
With a view to enforce quality, efficiency, transparency and accountability in the operation of
BSEB in this Order the Commission has issued fresh directives to BSEB for strengthening
the consumer complaint redressal mechanism, circle-wise fixing and monitoring of loss
trajectory, determining category-wise and voltage-wise T&D loss and cost of supply,
preparation of separate business plan for generation, transmission and distribution functions
and submitting multi year tariff petition for generation, transmission and distribution for a
period of 3 years starting from FY 2013-14.
This order shall be effective w.e.f. 1st April 2012. The Bihar State Electricity Board should
ensure implementation of the order from the effective date after issuance of a Public Notice,
in such a font size which is clearly visible, in two daily newspaper having wide circulation in
the various parts of state within a week and compliance of the same shall be submitted to
the Commission by the BSEB.
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Bihar Electricity Regulatory Commission Page 7
This order shall remain in force till 31st March, 2013 or till the next tariff order of the
Commission.
This order will be placed on the website of the Commission and a copy will be sent to BSEB,
Department of Energy, Government of Bihar, Central Electricity Regulatory Commission and
all State/Joint Electricity Regulatory Commissions.
(S. C. Jha) (U. N. Panjiar) Member Chairman
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Bihar Electricity Regulatory Commission Page 8
1 Introduction
1.1 Bihar Electricity Regulatory Commission
1.1.1 The Bihar Electricity Regulatory Commission (hereinafter referred to as
“Commission” or “BERC”) was constituted by the Government of Bihar under Section
17 of the Electricity Regulatory Commission Act, 1998 vide Government of Bihar
notification No.1284 dated 15th April 2002. The Electricity Regulatory Commission
Act, 1998 along with Indian Electricity Act, 1910 and Electricity (Supply) Act, 1948
was repealed by Section 185 (1) of the Electricity Act, 2003 (hereinafter referred to
as the “Act”). The first proviso of Section 82 (1) has ensured continuity of the Bihar
Electricity Regulatory Commission by laying down that the State Electricity
Regulatory Commission established by the State Government under Section 17 of
Electricity Regulatory Commission Act, 1998 and functioning as such, immediately
before the appointed date, shall be the State Electricity Regulatory Commission for
the purpose of the Act.
1.2 Functions of BERC
1.2.1 As per Section 86 of the Electricity Act 2003, the State Commission shall discharge
the following functions, namely
a) determine the tariff for generation, supply, transmission and wheeling of
electricity, wholesale, bulk or retail, as the case may be, within the State:
Provided that where open access has been permitted to a category of
consumers under section 42, the State Commission shall determine only the
wheeling charges and surcharge thereon, if any, for the said category of
consumers;
b) regulate electricity purchase and procurement process of distribution licensees
including the price at which electricity shall be procured from the generating
companies or licensees or from other sources through agreements for purchase
of power for distribution and supply within the State;
c) facilitate intra-state transmission and wheeling of electricity;
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Bihar Electricity Regulatory Commission Page 9
d) issue licences to persons seeking to act as transmission licensees, distribution
licensees and electricity traders with respect to their operations within the State;
e) promote co-generation and generation of electricity from renewable sources of
energy by providing suitable measures for connectivity with the grid and sale of
electricity to any person, and also specify, for purchase of electricity from such
sources, a percentage of the total consumption of electricity in the area of a
distribution licence;
f) adjudicate upon the disputes between the licensees, and generating companies
and to refer any dispute for arbitration;
g) levy fee for the purposes of this Act;
h) specify State Grid Code consistent with the Indian Electricity Grid Code
specified with regard to grid standards;
i) specify or enforce standards with respect to quality, continuity and reliability of
service by licensees;
j) fix the trading margin in the intra-state trading of electricity, if considered,
necessary; and
k) discharge such other functions as may be assigned to it under this Act.
1.2.2 The State Commission shall advise the State Government on all or any of the
following matters, namely
a) promotion of competition, efficiency and economy in activities of the electricity
industry;
b) promotion of investment in electricity industry;
c) reorganization and restructuring of electricity industry in the State;
d) matters concerning generation, transmission, distribution and trading of
electricity or any other matter referred to the State Commission by State
Government.
1.3 Bihar State Electricity Board
1.3.1 Bihar State Electricity Board (hereinafter referred to as “Board” or “BSEB”) is a
statutory body constituted on1st April 1958 under Section 5 of the Electricity (Supply)
Act, 1948 and has been engaged in electricity generation, transmission, distribution
of electricity and related activities in the State of Bihar.
1.3.2 In exercise of the power conferred by the proviso of 172(a) of the Electricity Act,
2003, the Govt. of Bihar has allowed BSEB to continue to function as State
Transmission Utility and a Licensee for Distribution of Power till 31.12.2011.
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Bihar Electricity Regulatory Commission Page 10
1.3.3 Presently, the Board is thus functioning as deemed State Transmission Utility (STU)
and a Distribution Licensee. This Aggregate Revenue Requirement & tariff petition
for FY 2012-13 has been submitted by the State Transmission Utility and the
Distribution Licensee.
1.4 Chronology of the filing of tariff petitions an d Issue of Tariff Orders
1.4.1 The BSEB had submitted its first Aggregate Revenue Requirement (hereinafter
referred to as “ARR”) and tariff petition for the FY 2006-07 on 10th April, 2006. The
Commission passed the Tariff Order on that petition on 29th November, 2006.
1.4.2 The BSEB submitted its ARR and tariff petition for FY 2007-08 on 18th December,
2007. As the tariff petition for FY 2007-08 was filed very late, the Commission vide
letter no. BERC.Tariff-9/07-03 dated 2nd January 2008 directed the BSEB to file the
ARR and tariff petition for FY 2008-09 along with data as specified by the
Commission in the BERC (Terms and conditions for determination of Tariff)
Regulations, 2007 by 31st January 2008.
1.4.3 The BSEB submitted its ARR and tariff petition for FY 2008-09 on 14th February,
2008. The Tariff Order for FY 2008-09 was passed by the Commission on 26th
August, 2008. The Commission also undertook the “Review” of ARR for FY 2006-07
along with Tariff Order for FY 2008-09.
1.4.4 The BSEB filed on 9th October 2009 petition for determination of ARR and approval
of retail tariff for FY 2009-10. However, due to delay in filing of the ARR/ tariff petition
for FY 2009-10, the Commission directed the BSEB to file the ARR and tariff petition
for the FY 2010-11. In view of the same, there was no approval of the ARR for FY
2009-10.
1.4.5 The BSEB submitted its ARR and tariff petition for FY 2010-11 before the
Commission on 3rd February, 2010. The Commission passed the Tariff Order for FY
2010-11 on 6th December, 2010. The Commission also undertook the “Review” of
ARR FY 2008-09 along with the Tariff Order for FY 2010-11.
1.4.6 The BSEB submitted its ARR and tariff petition for FY 2011-12 before the
Commission on 17th February, 2011. The Commission passed the Tariff Order for
FY 2011-12 on 1st June, 2011 effective from 1st May 2011.
1.4.7 The True-up petition for FY 2006-07, FY 2007-08 and FY 2008-09, based on the
audited annual accounts of BSEB, was filed by the BSEB on 01st September 2011.
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Bihar Electricity Regulatory Commission Page 11
The addendum to this True-up petition was filed by BSEB on 17th October 2011. The
Commission passed its first truing up order for FY 2006-07, FY 2007-08 and FY
2008-09 on 4th January 2012.
1.4.8 Subsequently, the BSEB filed the True-up petition for FY 2009-10 on 13th October,
2011. The truing up order for FY 2009-10 was issued by the Commission on 27th
January 2012.
1.4.9 BSEB also submitted a petition on 13th October, 2011 vide letter no. Com/ FPPCA-
136/2011-1659 for the review of ARR for FY 2010-11 based on their provisional
annual accounts. The Commission vide its Order dated 3rd November, 2011 directed
BSEB to submit its petition for review of the expenses and revenues for the FY 2010-
11 along with tariff petition for FY 2012-13. Commission also directed BSEB that, if
the final audited accounts for the FY 2010-11 are made available to the Commission
along with or during the hearing of tariff petition for FY 2012-13, a final true up of the
expenses and revenues for the FY 2010-11 shall be considered by the Commission.
1.4.10 The Board filed its ARR and tariff petition for FY 2012-13 on 15th November 2011. In
this petition the Board has also carried out review exercise for FY 2011-12 projecting
the revised estimates for FY 2011-12 based on the provisional annual accounts of
BSEB for FY 2010-11. A Supplementary petition for determination of ARR & retail
tariff petition for FY 2012-13 was subsequently filled by the Board vide letter No.
Com/ Tariff-152/ 2011-(Part-I) -017 on 2nd January 2012.
1.4.11 Further, BSEB vide letter No. Com/ Tar-132/ 2011-392 dated 2nd March, 2012
submitted the audited annual accounts for FY 2010-11 along with the audit certificate
issued by CAG to the Commission. Subsequently, BSEB vide letter No. Com/ Tar-
132/ 2011-451 dated 16th March, 2012 submitted the true-up petition of BSEB for FY
2010-11 based on the audited annual accounts for FY 2010-11.
1.4.12 The purpose of this order is to true up the ARR and revenue for FY 2010-11, review
expenses and revenue for FY 2011-12 and approve ARR and retail tariff for FY 2012-
13.
1.5 Scope of the Order
1.5.1 In the absence of audited accounts of FY 2010-11, BSEB filed its Review petition for
FY 2010-11 for approval of the Commission. Subsequently on 5th March 2012 vide
letter No Com/Tar- 132/2011-392 dated 02.03.2012, BSEB has submitted audited
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Bihar Electricity Regulatory Commission Page 12
annual accounts for FY 2010-11 along with the audit certificate issued by CAG and
true-up petition for FY 2010-11 on 16th March, 2012 vide letter No. Com/ Tariff-
132/2011-451.
1.5.2 The scope of this order extends to:
a) Truing up exercise for FY 2010-11based on audited annual accounts of the
Board for FY 2010-11;
b) Review exercise for FY 2011-12;
c) Determination of ARR and retail tariff for sale of electricity for FY 2012-13;
1.5.3 The aforementioned exercise has been done by taking into consideration the
provisions of:
a) Electricity Act, 2003;
b) National Electricity Policy;
c) Tariff Policy;
d) BERC (Terms and conditions for determination of Tariff) Regulations, 2007.
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Bihar Electricity Regulatory Commission Page 13
2 Procedural History
2.1 Background
2.1.1 BSEB has filed petition for determination of tariff for FY 2012-13, review of expenses
for FY 2011-12 and for true-up of ARR and revenue for FY 2010-11. The tariff
petition for FY 2012-13 filed by the BSEB vide letter No.- Com / Tariff/ 152/ 2011 -
1838 dated 15th November 2011 for approval of the ARR and determination of retail
tariff for FY 2012-13 also includes the proposal for review of ARR for FY 2011-12
based on the annual accounts of the Board for FY 2010-11.
2.1.2 As per the BERC (Terms and conditions for determination of Tariff) Regulations,
2007, BSEB is required to submit the audited annual accounts of the previous years
along with the tariff petition for the next year, which the BSEB has submitted on 5th
March 2012 vide letter No. Com/ Tar-132/ 2011-392 dated 02.03.2012 as per the
Commission order dated 3rd November 2011.
2.1.3 Subsequently, BSEB vide letter no. Com/tariff-152/2011 (Part-1)-2079 dated 30th
December 2011 submitted a supplementary tariff petition for FY 2012-13.
2.2 Information Gaps in the petition
2.2.1 In the process of scrutinizing the tariff petition filed by the Petitioner, the Commission
observed some data gaps in the ARR & tariff petition received from the Petitioner.
2.2.2 The data gaps observed by the Commission were communicated to the Petitioner
vide Commission’s letter No. BERC- Tariff – 24/11- 825 dated 21st December, 2011
and reminders vide letter No. BERC- Tariff – 24/11- 56 dated 18th January, 2012 and
BERC- Tariff – 24/11- 88 dated 27th January, 2012. The Petitioner provided only the
partial data vide letter No Com/Tar/161/2011-260 dated 09th February, 2012 after
taking fifty (50) days’ time.
2.2.3 Further clarifications were sought from the Petitioner vide Commission’s letter No.
BERC - Tariff – 24/11- 88 dated 27th January, 2012 and reminder vide letter No
BERC- Tariff – 24/11- 137 dated 13th February, 2012. The Board submitted its
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Bihar Electricity Regulatory Commission Page 14
response on 1st March 2012 vide letter No. Com/ Tar-132/2011-375 taking further
thirty-five (35) days.
2.2.4 Additional information was sought from the Board vide Letter No. BERC- Tariff-
24/11-202 dated 01st March 2012. The Board submitted its response through
electronic mail on Commission’s official e-mail address ([email protected]) and
through letter No. Com/ Tar-161/2011-421 dated 12th March 2012.
2.2.5 Further, during the public hearing on the petition of BSEB in Patna, additional
information was sought from the Board vide Commission’s Letter No. BERC- Tariff-
24/11-244 dated 15th March 2012. The Board submitted its response through letter
No. Com/ Tar-161/2011(Part-1) - 444 dated 16th March 2012.
2.2.6 From time to time and till the finalization of this Tariff Order, the Commission
regularly interacted with the officials of the BSEB to validate the information
submitted by them.
2.3 Inviting comments / suggestions from Public
2.3.1 As per sub-Clause 6 (5) of the BERC (Terms and conditions for determination of
Tariff) Regulations 2007,and for providing adequate opportunity to all stakeholders
and general public for making suggestions/ objections on the tariff petition as
mandated under section 64(3) of the Electricity Act 2003, the Commission vide its
letter No. BERC- Tariff – 24/ 11 - 774 dated 28th November 2011 directed the BSEB
to publish the ARR and tariff petition for FY 2012-13 in an abridged form in shape of
a public notice in at least two daily newspapers, one in English and the other in Hindi,
having wide circulation in the state inviting objections and suggestions on the tariff
petition. To ensure maximum participation from all the stakeholders and general
public at large the tariff petition was also placed on BSEB website
(http://www.bseb.bih.nic.in/Notices.htm) and copies of the petition along with
annexures were also made available for sale in the office of the Chief Engineer
(Commercial), BSEB Patna and in the Office of All Area General Managers-cum-
Chief Engineers and all Superintending Engineers In-charge of supply circles of the
Board.
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Bihar Electricity Regulatory Commission Page 15
2.3.2 The tariff petition for the FY 2012-13 in abridged form was published as public notice
in different newspapers as mentioned in the table below:
Table 1: Schedule of issue of Public Notice in vari ous newspapers
Sl. Name of News Paper Date of Publication
Issued in Patna Edition Newspaper
1. Danik Jagaran (Hindi) 08th December 2011 & 6th March 2012
2. Times of India, Patna (English) 09th Dec 2011, 13th Dec. 2011 & 6th March 2012 3. Hindustan, Patna (Hindi) 12th December 2011 & 6th March 2012 4. Prabhat Khabar (Hindi) 6th March 2012
Issued in Dharbhanga Edition Newspaper
1. Prabhat Khabar (Hindi) 28th January 2012
2. Times of India, (English) 29th January 2012
Issued in Bhagalpur, Purnia and Gaya Edition Newspaper
1. Hindustan (Hindi) 17th February 2012
2. Times of India, (English) 17th February 2012 Issued in Muzaffarpur Edition Newspaper
1. Prabhat Khabar (Hindi) 28th January 2012 & 3rd March 2012
2. Times of India, (English) 29th January 2012 & 3rd March 2012
2.3.3 However, despite the direction of Commission vide its letter No. BERC- Tariff – 24/
11 - 774 dated 28th November 2011 to publish the ARR and tariff petition for FY
2012-13 to ensure maximum participation from all the stakeholders and general
public, initially BSEB did not upload the supplementary ARR and tariff petition for FY
2012-13 on their website, although the supplementary ARR and tariff petition for FY
2012-13 was filed by the BSEB on 30th December 2011. The Commission took
notice of the same and again directed the BSEB vide letter No BERC- Tariff – 24/11-
199 dated 29th February 2012 and letter No BERC- Tariff – 24/11 – 210 dated 2nd
March 2012 to upload the same on the official website of BSEB without any further
delay inviting comments and suggestion of the public during the remaining two public
hearings which were scheduled on 13th March 2012 and 14th March 2012 at
Muzaffarpur and Patna respectively. Accordingly, the BSEB uploaded the
supplementary ARR and tariff petition for FY 2012-13 on the BSEB website on 05th
March 2012 for consideration during ARR and tariff determination process and public
hearing.
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Bihar Electricity Regulatory Commission Page 16
2.3.4 The last date of submission of comments was initially fixed as 06th January 2012.
Later, on request of some consumers/ consumer’s associations, the Commission
extended the date for submission of objections/ suggestions to 20th January 2012
and public notice was issued by Commission on 7th January 2012 vide Notice No.-1.
2.3.5 Comments and suggestions were received from fifteen (15) consumers/ consumer
associations and general public up to the due date i.e. 20th January 2012. The list of
persons/ organizations whose suggestions/ comments have been received is as
given in the table below:
Table 2: List of Objectors
Sl. Name of Consumer/ consumer organizations Address
1 M/s Dadiji Steel Ltd. 502, Santosha Complex, Bandar Bagicha, Fraser Road Patna
2 M/s Kalyanpur Cements Ltd. Maurya Centree, Freser Road Patna
3 M/s Patwari Steel Pvt Ltd. Fathua Patna
4 Shri Pramod Kumar Sharma Dilawaerpur west, P.O. Viddupur Bazar, Vaishali
5 M/s Bihar Steel Manufacturing Association 307, Ashiyana Tower, Exhibition Road Patna
6 M/s Balmukund Concast Limited Kalyani Complex, Exhibition Road Patna
7 Shri Doman Singh B-44, Road No-2, Anand Bihar Patna
8 Chief Electrical Engineer (ECR, Hazipur) East Central Railway Patna
9 Shri Braj Nandan Pathak,Vidyut Upbhogta Sangarsh Samiti
93, Lakshman sahay Lane, Gurudwara Road, Gaya
10 M/s Bhola Ram Steel Private Ltd. Nasrigang, Danapur
11 M/s Bhojpur Chamber of Commerce & Industry Mahajan Toli, Arha
12 M/s Bihar Chamber of Commerce Khem Chand Chaudhary Marge, Patna
13 Shri Vinay Goenka Patna City Chowk, Patna
14 Shri Vyasdev Prasad Hospital Road Siwan
15 M/s Dina Iron and Steel Abdul Rahmanpur Road, Didarganj, Patna
2.3.6 The Commission vide letter No. BERC-Tariff-02/11-73 dated 25.01.2012 directed the
BSEB to submit the replies/ responses to the suggestions/ objections to the
Commission by 7th February, 2012.
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Bihar Electricity Regulatory Commission Page 17
2.3.7 The BSEB prayed for time for submission of written response to the suggestions/
objections made by the consumers/Consumer Associations. The Commission
directed the BSEB to submit the same at the earliest.
2.3.8 The BSEB submitted the replies and response to the objections/ suggestions
received from these fifteen (15) entities vide BSEB letter no. Com/Tariff/02/2012 –
302 dated 16th February, 2012 to the Commission. The same has been discussed in
detail in the Chapter 3 of this Tariff Order.
2.3.9 Further, the Commission has received Comments and suggestions from consumers/
consumer associations and general public during the public hearing process
conducted at Darbhanga, Bhagalpur, Purnia, Gaya, Muzaffarpur and Patna. The list
of persons/ organizations whose suggestions/ comments have been received during
public hearing at various places is as given in the table below:
Table 3: Additional list of Objectors
Sl. Name of Consumer/ consumer organizations Address
Darbhanga - 15 th February 2012
1 Sri Dilip Kumar Jha Secretary, Rural Electric Consumer Association, Loha Madhubani
2 Sri Pawan Kumar Sureka President, Divisional Chamber of Commerce & Industries, Masrat Bazar, darbhanga
3 Dr. Shashi Bhushan Mahto Secretary, Upvokta Manch, Biraul, Darbhanga
4 Sri Ajoy Bihari Laheria Sarai, Khaja Sarai, Darbhanga
5 Sri Gyaneshwar Prasad General Secretary, Mithilanchal Industrial Chamber of Commerce, Industrial Area, Darbhanga
Bhagalpur – 23 rd February 2012
6 Sri Lakhan Lal Prasad Manik Sarkar Chowk, Bhagalpur
7 Sri sandeep Jha, Advocate Behind Consumer Court, Bhagalpur
8 Sri Gautam Suman Chairman, Ang Uthanodolan Committee, Iswer Nagar, Bisharisthan, Isakchak, Bhagalpur
9 Sri Prakash Chandra Gupta & Others Co-ordination Committee, Bhagalpur
10 Dr. Jayant Jalad Central general secretary, Ang Uthanodolan Committee, Bhagalpur
11 Sri Mutukdhari Agrawal President, Eastern Bihar Industries association, 4 Rai Gopal Sarkar Lane., Bhagalpur
12 Sri Surendra Kumar Dauania Marwari Tola Lane, Bhagalpur
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Bihar Electricity Regulatory Commission Page 18
Sl. Name of Consumer/ consumer organizations Address
13 Sri Shashi Shankar Rai Laloo Chak, Isakchak, Bhagalpur
Purnia – 24 th February 2012
14 Sri Bimal Chand Bajaria President, North eastern Bihar Chamber of Commerce and Industries, Syndicate Katra 2nd Floor Katihar
5 Sri Pankaj Kumar Nayak Pankaj International, Maranga, Purnea
Gaya – 27 th February 2012
16 Sri Brij Nandan Phatak Secretary, Vidyut Upvokta Sangharse sammittee, 93, Lakshman sahay Lane, Gurudwara Road, Gaya
17 Sri Sandalankara Vikklauk & Kiran Lama
President & general Secretary, International Buddhist Council of Buddhagaya Daijokyo Buddhist Temple, Buddhgaya
18 Sri Arvind Kumar President, South Bihar Industrial Association, Lharia Tola, Gaya
Muzaffarpur – 13 th March 2012
19 Sri Prakash Narayan Saha General Secretary, Viyahut Seva Trust, Yadupati Marge, Banarash Chowk, Muzaffarpur
Patna – 14 th March 2012 & 19 th March 2012
20 M/s Gangotri Iron and Steel Bihta, Patna
21 Sri Ajit Prasad Mehta Senior Vice President, Jawan Kishan Morcha, Ara (Bhojpur)
22 Sri Raj Kishore Sharma Vice President,Lk Kalayan Ayog, Sheoganj, Ara (Bhojpur)
23 Sri Vishwanath Prasad President, Bhojpur Chamber of Commerce & Industries, Mahajantoli, Ara (Bhojpur)
24 Sri Deo Ratan Prasad President,Jan Sangharse Morche, Belwargaj, Patna City, Patna
25 M/s Bihar Industrial Association Sinha Library Road, Patna
26 M/s Bholaram Steel Private Limited Nasriganj, Digha, Patna
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Bihar Electricity Regulatory Commission Page 19
2.3.10 The Commission vide letter No. BERC-Tariff-24/ 11-237 dated 12th March, 2012 and
letter No. BERC-Tariff-24/ 11 (part-1) - 248 dated 15th March, 2012 directed the
BSEB to submit the replies/ responses to the suggestions/ objections received in
public hearings to the Commission before 19th March 2012.
2.3.11 The BSEB submitted the replies and responses to the objections/ suggestions
received from these twenty-six (26) entities vide BSEB letter no. Com/Tariff/02/2012
– 476 dated 21st March, 2012 to the Commission. The same has been discussed in
detail in the Chapter 3 of this Tariff Order for FY 2012-13.
2.4 State Advisory Committee
2.4.1 The meeting of the State Advisory Committee to consider the ARR and retail tariff for
FY 2012-13 was held on 23rd December 2011. The proceedings of the State Advisory
committee is given in Annexure – I .
2.5 Public Hearing
2.5.1 Clause 19 of BERC (Terms and conditions for determination of Tariff) Regulations,
2007 provides that the Commission shall hold the public hearing(s) to decide on
revenue calculations and tariff proposals of the transmission & distribution utilities.
Considering the proceedings of the hearing(s) as well as suggestions/objections
received in response to the public notice, the Commission shall issue an order
communicating its decision on the revenue calculations and tariff proposals to the
Transmission or Distribution licensee, as the case may be.
2.5.2 For convenience of electricity consumers and general public across the State, the
Commission held the public hearing at following divisional headquarter in the state:
Table 4: Schedule for public hearing
Sl. Name of Place Time and Date Venue
1 Darbhanga 15th February, 2012 at 11:30 A.M. Conference Hall of Divisional Commissioner, Darbhanga
2 Bhagalpur 23rd February, 2012 at 11:00 A.M. Conference Hall of Divisional Commissioner, Bhagalpur
3 Purnea 24th February, 2012 at 11:30 A.M. Conference Hall of DRDA Annexe Building, Purnea
4 Gaya 27th February, 2012 at 11:00 A.M. Conference Hall of Divisional Commissioner, Gaya
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Bihar Electricity Regulatory Commission Page 20
Sl. Name of Place Time and Date Venue
5 Muzaffarpur 13th March, 2012 at 11:30 A.M. Conference Hall of Zila Parishad, Muzaffarpur
6 Patna 14th March, 2012 at 11:00 A.M. & 19th March, 2012 at 11:30 A.M.
Office of BERC, Vidyut Bhawan- II, Bailey Road Patna
2.5.3 The BSEB was given an opportunity to present its proposal before the Commission
and the consumers/Consumer’s Association who were present at the public hearing.
The BSEB presented its case through audio-visual presentation explaining the
proposals in the tariff petition for FY 2012-13.
2.6 Structure of the Order
2.6.1 This order is organised into the following chapters namely:
• Chapter 1: Introduction – Covers the background of the entire process along
with details of the process adopted by the Commission prior to issue of this
Tariff Order for BSEB and the approach being adopted therein.
• Chapter 2: Procedural History - Covers the details of the process of
publication of ARR and tariff petition, scrutiny of the data/ information provided
by the Petitioner and the process of consultation with public;
• Chapter 3: Public Consultation Process - Provides a detailed account of the
public hearing process, including the comments of various stakeholders, the
Petitioner’s responses and views of the Commission;
• Chapter 4: True up of FY 2010-11 - Deals with the True up of expenses for FY
2010-11;
• Chapter 5: Review of FY 2011-12 - Deals with the review of proposed
expenses for FY 2011-12;
• Chapter 6: Analysis of Aggregate Revenue Requiremen t for FY 2012-13 -
Deals with the determination of ARR and tariff for FY 2012-13;
• Chapter 7: Government grant/ revenue subsidy – Deals with quantum and
treatment of grant/ subsidy from the State Government;
• Chapter 8: Tariff Principles, Design and Tariff Sch edule – Deals with tariff
principles and approved Tariff schedule for FY 2012‐13;
• Chapter 9: Status of Directives issued by the Commi ssion - Deals with
report of compliance of directives submitted by the BSEB and Commission’s
observations on compliance and fresh directives;
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Bihar Electricity Regulatory Commission Page 21
• Chapter 10: Generation, Transmission, Wheeling Char ges and Open
Access Charges – Deals with the Wheeling Charges and Open Access
Charges, and;
• Chapter 11: Renewable Purchase Obligation
• Chapter 12: Annexures
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Bihar Electricity Regulatory Commission Page 22
3 Public Consultation Process
3.1 Introduction
3.1.1 The tariff petition evoked response from several stakeholders. In response to the
public notice inviting objections/ suggestions of the stakeholders on the petition, a
number of consumers/ consumer organisations filed their submissions in writing.
Some of these persons also participated in the public hearing held on the 15th, 23rd,
24th, 27th of February’12 and 13th, 14th and 19th of March’12. Submissions and
responses, pertaining to specific aspects of tariff proposal, have been taken into
account in the determination of ARR, formulation of an equitable tariff, balancing the
interests of various stakeholders, even if they do not find place in the suggestions/
objections of the stakeholders.
3.1.2 The public hearings were held at various locations across the State to ensure
maximum public participation wherein stakeholders put forth their comments and
suggestions before the Commission in the presence of the Petitioner. There were
152 members of the public who took part in the public hearing process. The list of the
participants is attached as Annexure-II to this Order. In course of public hearings, the
Commission also allowed persons/representatives of entities who had not submitted
prior written representations to express their views on the ARR and tariff petition for
FY 2012-13.
3.1.3 The Commission has examined the issues and concerns voiced by various
stakeholders in their written comments as well as in the public hearing and also the
response of the Petitioner thereon. The comments/ suggestions submitted by various
stakeholders in response to the tariff petition, the replies given by the Petitioner and
the views of the Commission have been summarized under various sub-heads as
below:-
3.2 Stakeholders Suggestions/ Objections, BSEB’s Re sponse and Commission’s
Views
3.2.1 Issue: Delay in filing the tariff petitions and tru e-up petitions
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Bihar Electricity Regulatory Commission Page 23
M/s Dadiji Steel Limited and Bihar Steel Manufacturers Association have pointed out
that the Board has delayed the filing of tariff petitions for FY 2006-07, FY 2007-08,
FY 2008-09, FY 2009-10 and FY 2010-11 beyond specified time. True up petition for
FY 2006-07, FY 2007-08, FY 2008-09, FY 2009-10 and FY 2010-11 have also been
filed quite late. It was pointed out that the true up exercise for FY 2010-11 and review
of ARR for the FY 2011-12 has to be done by the Commission before considering the
ARR and tariff proposal for FY 2012-13.
Petitioner’s submission
The BSEB has prepared its ARR and tariff petition for the FY 2012-13 in accordance
with the BERC (Terms and conditions for determination of Tariff) Regulations, 2007
notified by the Commission and the provisions of the Electricity Act 2003.
True-up petition for FY 2006-07, FY 2007-08, FY 2008-09 & FY 2009-10 was filed
before the Commission by BSEB and order for the same has been issued by the
Commission. True up petition for FY 2010-11 & review petition for FY 2011-12 have
also been filed before the Commission.
Commission’s observation
The Commission has directed the Board to file true up, review and tariff petitions
within specified time limit. The Commission has passed orders on the true up petition
for FY 2010-11 and review petition for FY 2011-12 and considered their impact on
ARR and the tariff for FY 2012-13.
3.2.2 Issue: Segregated ARR for Generation, Transmission and Distribution functions of BSEB
Bihar Chamber of Commerce, Central Bihar Chamber of Commerce, South Bihar
Industries Association and Divisional Chamber of Industry & Commerce have stated
that the Petitioner has to file separate ARR for generation, transmission and
distribution business.
Petitioner’s submission
Function wise ARR as per annual accounts has been provided in table 40 of the tariff
petition.
Commission’s observation
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Bihar Electricity Regulatory Commission Page 24
The BSEB is an integrated utility of generation, transmission and distribution, and
hence the filing of tariff is in accordance with Annexure D of BERC (Terms and
conditions for determination of Tariff) Regulations, 2007. The Commission will
undertake detailed scrutiny of ARR while approving the ARR for FY 2012-13.
3.2.3 Issue: BSEB’s own Generation
M/s Balmukund Concast Limited, M/s Dadiji Steel Ltd, Bihar Steel Manufacturer
Association and some other consumers/ consumer groups gave suggestions/
objections on different aspects of own generation of BSEB. They pointed that the
Board has projected the gross generation of 310 MU in FY 2012-13 which is higher
than the past generation trend. The Board has also projected the operational
parameters with a view to exaggerate the cost of generation without taking into
consideration the norms specified in CERC (Terms and conditions of Tariff)
Regulations, 2009 and the norms approved by the Commission. The Petitioner has
proposed generation ARR of Rs 571.29 Cr. for net generation of 272.80 MUs which
shows that the plant is generating power at abnormally high cost of about Rs 21 per
kWh.
It was further mentioned that the Board has not provided any specific data for supply
of energy from its own generating station mainly from BTPS Unit-7. They suggested
that R&M cost should be allowed only after the benefits are passed on to the
Consumers. It was stated that the Board has sought approval of Rs 158.13 Cr. as
fuel cost for FY 2012-13 and suggested that if there is no generation of electricity and
no benefit of such generation is received by the Consumer, the proposed fuel cost for
generating station should not be allowed.
They also pointed out that there is a continuous lack of improvement in the
performance parameters of BTPS and suggested that the Commission should
consider the performance standards for projecting the cost of generation from BTPS.
Petitioner’s submission
BSEB submitted that at present Unit VII is under shutdown and undergoing
Renovation & Modernization work for revival. Dismantling of the Unit VI for R&M work
is planned from June 2012 while R&M of Unit VII is expected to be completed by July
2012.
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Bihar Electricity Regulatory Commission Page 25
After R&M the unit will be under stabilization period and hence higher specific oil
consumption is requested for BTPS plant. Station heat rate is expected to improve
from FY 2010-11 level of 4103 kCal/kWh to 4000 kCal/kWh & 3700 kCal/kWh for FY
2011-12 & FY 2012-13 respectively. Coal price in FY 2010-11 was Rs. 1823 per MT
but in recent times it has witnessed steep hike and it was Rs. 3317 per MT in the
month of August, 2011. Hence coal price for FY 2011-12 & FY 2012-13 is expected
to be higher from the level of FY 2010-11. Other fuel related cost is projected in line
with the cost witnessed in FY 2010-11.
BSEB submitted that the ARR of generation is Rs. 571.29 Cr. out of which Rs.
413.16 Cr. comprises of fixed costs like employee cost, operation and maintenance
expenses, depreciation, interest and finance charges etc. and Rs. 158.13 Cr. are for
fuel cost. Even if BSEB shuts down the operation of BTPS, it will continue to incur
fixed cost of the power plant. BSEB cannot shut down BTPS as Bihar is a power
deficit state.
Commission’s observation
The Commission observes that the Renovation & Modernisation (R&M) process of
BTPS is currently underway and the operational parameters will be reviewed
thereafter. The Commission expects that after completion of R&M works, plant shall
operate at efficient scale at par with other similarly placed generating plants. The
Commission has dealt this issue while approving theARR for FY 2012-13 in Chapter
– 6.
3.2.4 Issue: Capacity Charge of BTPS plant
M/s Kalyanpur Cement has pointed out that as per Clause 33 of the BERC (Terms
and conditions for determination of Tariff) Regulations, 2007, a generating plant must
operate at 80% efficiency (Plant Load Factor/ Availability) to recover fixed charges
from the consumers. Further, recovery of capacity/ fixed charges below the level of
target availability (80%) shall be on pro-rata basis and at zero availability, i.e., for
‘non-productive assets’ no capacity charges can be recovered from the consumers
based on the principle that inefficiency of the utility should not be passed on to the
consumers. BSEB has only one generating asset and out of seven units only Unit no.
6 is functioning at de-rated capacity of 105 MW with PLF of 11.1% (2008-09),
28.78% (2009-10) and projected to be 31% during 2011-12. In such a case BSEB
cannot recover any fixed charges for units 1 to 5 and 7 and any other ‘non-
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Bihar Electricity Regulatory Commission Page 26
performing assets’ and in case of Unit 6 BSEB can recover less than 40% fixed costs
related to generation.
Petitioner’s submission
BSEB is not recovering any fixed charge for the units which have been permanently
shut down. The fixed costs have been claimed for units which are functional. Further
the recovery of fixed cost is proposed at PLF approved by the Commission and not
80% as indicated by the objector. The availability factor indicated by the objector is
for new units (and of standard size) and not for 110 MW units which have completed
their economic life.
Commission’s observation
The Commission observes that the Renovation & Modernisation (R&M) process of
BTPS is currently underway and the operational parameters will be reviewed
thereafter. The Commission has dealt this issue while approving the ARR for FY
2012-13 in Chapter – 6 of this Tariff Order.
3.2.5 Issue: Power purchase cost
M/s Balmukund Concast Limited and M/s Gangotri Iron and Steel Company Limited
have observed that the Petitioner has projected the Power purchase of 11,931 MU
and 14,142 MU at a cost of Rs 4163 Cr. and Rs 5139 Cr. respectively for FY 2011-12
and FY 2012-13. However, the details of the source of renewable energy purchase
and short term/ medium term power purchase for FY 2012-13 have not been
furnished. It has also been pointed out that the Board has projected very high power
purchase cost @ Rs. 3.49 per unit and Rs. 3.63 for FY 2011-12 and FY 2012-13
respectively from various sources.
Central Bihar Chamber of Commerce, South Bihar Industries Association, Divisional
Chamber of Industry & Commerce , M/s Dadiji Steel Limited and Bihar Steel
Manufacturer Association have stated that during the past decades 85% of the
projected power production was never made available to the Board. Accordingly, the
projection of 1304 MUs and 3351 MUs of Power availability from additional sources
for FY 2011-12 and FY 2012-13 should not be accepted by the Commission. Prof.
Pramod Kumar Sharma requested the BERC to do an in-depth analysis of the power
purchase costs and requested that details of the same are furnished to general
public.
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Bihar Electricity Regulatory Commission Page 27
Petitioner’s submission
BSEB submitted that it has purchased power for the short and medium terms only
through open tenders and competitive bidding route. Considering the availability of
power from these short and medium term sources at 85% availability factor,
additional power purchase has been projected at 1304 MU and 3351 MU for FY
2011-12 and FY 2012-13 respectively.
Power purchase through renewable sources: BERC has notified the “Renewable
Purchase Obligation, its Compliance and REC framework Implementation Regulation
2010”, the Sub-clause 4.1 of the regulation states that
“Every obligated entity shall purchase not less than 1.5%, 2.5%, 4%, 4.5% and 5% of
its total energy consumption (total energy input minus T&D losses) during 2010-11,
2011-12, 2012-13, 2013-14 and 2014-15 respectively from renewable energy
sources under the Renewable Purchase Obligation or until reviewed by the
Commission. Provided that 0.25% out of the renewable purchase obligation so
specified in the year 2010-11 shall be procured from generation based on solar as
renewable energy source and shall be increased at a rate of 0.25% every year
thereafter till 2014-15 or until reviewed by the Commission”.
BSEB submitted that in compliance of “Renewable purchase obligation, its
Compliance and REC framework regulations, 2010” BSEB is required to purchase
2.5% & 4% of the total sales respectively from renewable energy sources. Out of the
total Renewable purchase obligation (RPO), 0.5% & 0.75% has to come from solar
energy sources for FY 2011-12 & FY 2012-13 respectively. BSEB has options like
Renewable Energy Certificates (REC) to meet renewable purchase obligation and
BSEB would consider this option to meet its RPO.
Short term/ medium term power purchase: Bihar is a power deficit state and BSEB
has obligation to serve the consumers. In order to fulfil its obligation, BSEB is
expanding its network across the length and breadth of the state. To meet the
growing demand of electricity of existing and new consumers, BSEB is purchasing
power on short and medium term basis.
Power purchase from NTPC: For projection of power purchase cost from NTPC for
FY 2011-12 & FY 2012-13, actual plant-wise cost from April 2011 to August 2011 has
been considered.
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Bihar Electricity Regulatory Commission Page 28
Power purchase cost: BSEB has projected the power purchase cost for FY 2012-13
on the basis of actual power purchase cost from April 2011 to August 2012.
Commission’s observation
Prudence checks including bills of central generating units have been done by the
Commission while approving the power purchase costs.
3.2.6 Issue: Operation and Maintenance expenses
(i) Repair and Maintenance (R&M) Expense
M/s Kalyanpur Cement Limited, M/s Balmukund Concast Limted and other
consumers suggested that the Commission should allow R&M expenses @ 2% of
the GFA of the Board in the ARR of FY 2012-13. They also pointed out that the
Petitioner has proposed R&M expense of Rs 110.62 Cr. as against the actual of Rs
62.51 Cr. in FY 2010-11 which amounts to 34% cumulative growth w.r.t. the FY
2010-11.
(ii) Employee Cost
Bihar Steel Manufacturer Association, M/s Dadiji Steel and M/s Balmukund Concast
Limited has pointed out that the Petitioner has estimated Rs 933.22 crores towards
employee cost which includes Rs 208.59 Cr. towards unfunded terminal liabilities, Rs
18.85 crores for leave encashment and Rs 19.97crores towards gratuity. They
suggested that the Commission should be fair enough to prudently check the data
with documentary evidence from the records of the Board.
(iii) Administrative and General (A&G) expenses
It was also observed by M/s Balmukund Concast Limited that the Board has
projected the A&G expenses of Rs 76.88 crores for FY 2012-13 against actual of Rs
38.83 crores during FY 2010-11, which is quite high.
Petitioner’s submission
Operation and Maintenance expenses consist of employee cost, A&G expenses and
R&M expenses.
Revised estimate for the employee cost is based on the actual figure of FY 2010-11.
The Wholesale price index (WPI) has increased from 130.81 in FY 2009-10 to 143.32
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 29
in FY 2010-11 which is an increase of 9.56%. The Commission had approved
escalation of 10% for employee cost in its Tariff Order for FY 2011-12. Considering
the same, BSEB estimates that the employee cost will increase by 10% in FY 2011-
12 & FY 2012-13 from the level of FY 2010-11.
Further, Over and above the current employee strength, BSEB has plan for additional
recruitment in view of the increase in network and number of consumers during the
last couple of years. BSEB plans to recruit 1166 employees under various employee
categories. BSEB has recruited some employee while recruitment for remaining
employees is in progress. Based on the pay scale of various levels of employees,
BSEB expects to incur additional cost of Rs. 11.07 Cr. for new employees in FY
2011-12 and Rs. 32.62 Cr. for FY 2012-13.
The 3 years CAGR based on the audited data of A&G expenses for the period FY
2007-08 to FY 2010-11 is 12%. BSEB has applied 12% escalation on A&G expenses
of FY 2010-11. Thus, A&G expenses for FY 2011-12 & FY 2012-13 are projected at
Rs. 45.13 Cr. & Rs. 50.54 Cr. respectively. Capitalization of A&G expense projected
for FY 2011-12 & FY 2012-13 is based on the actual capitalization rate of FY 2010-
11. A&G expenses to be capitalized are projected at Rs. 1.64 Cr. & Rs. 1.83 Cr. and
thus the net A&G expenses (post capitalization) are projected at Rs. 43.49 Cr. & Rs.
48.71 Cr. for FY 2011-12 & FY 2012-13 respectively.
In addition, BSEB expects to incur an additional A&G expense of Rs. 10 Cr. for
outsourcing of metering and billing related activities for FY 2011-12 which has been
approved by the Commission in the Tariff Order of FY 2011-12. BSEB proposes to
outsource all metering and billing related activities for all its consumers in FY 2012-
13 and it has awarded the contract of same. Accordingly the expenses on metering,
billing and related activities for FY 2012-13 is expected to be Rs. 28.17 Cr..
The assets of BSEB are old and require regular maintenance to ensure uninterrupted
operations. BSEB has been trying its best to ensure uninterrupted operations of the
system and accordingly has been incurring necessary expenditure on R&M activities.
Further expansion of transmission and distribution system has contributed to
increase in R&M expenses.
The Wholesale price index has increased from 130.81 in FY 2009-10 to 143.32 in FY
2010-11 which is an increase of 9.56%. Considering the same, BSEB expects that
the R&M expenses will increase by 10% in FY 2012-13 over the level of FY 2011-12.
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Bihar Electricity Regulatory Commission Page 30
The Commission in its Tariff Order for FY 2008-09 dated 26th August, 2008 directed
BSEB to include water charges & miscellaneous charges under the head R&M
expenses and exclude it from the fuel cost head. Accordingly BSEB has included
actual water charges & miscellaneous charges under this head and has excluded
from the fuel cost head in this petition.
It would be relevant to mention here that O&M norms prescribed by CERC in its
CERC (Terms and conditions of Tariff) Regulations, 2009 for determination of tariff
cannot be made applicable to BSEB as the operating conditions, geography,
consumer mix and the roles & responsibilities of central sector organizations differ
from those of BSEB.
Commission’s observation
The Commission takes note of the concerns of the objectors. The Commission is of
the view that the justifiable and legitimate cost should only be allowed to the
Petitioner for its smooth and efficient functioning. The Commission shall undertake
prudence checks of all components of O&M charges while approving the costs. This
has been dealt while determining the ARR for FY 2012-13 in Chapter-6.
3.2.7 Issue: Capital cost
M/s Kalyanpur Cement Limited stated that BSEB has included additional capital cost
in its petition without prior approval of the BERC. They made a submission that
expenses sought to be capitalized should be disclosed item-wise and unit-wise and
productivity-wise to the objectors/ consumers and same may be checked prudently
and only the expenses which are productive or available for production should be
allowed.
They pointed out that the Act and the Tariff Regulations, 2007 provide that separate
tariff for generation, transmission and distribution functions is to be determined in two
parts – capacity/ fixed charges and variable charges. Regulations 34, 50 and 69 of
the Tariff Regulations, 2007 define ‘Capital Cost’ for generation (Thermal),
generation (Hydel) and transmission of a utility. Expenditure incurred is subject to
prudence check by the Commission and other formalities before being admitted as
Capital Cost. The Capital Cost for 2009-10 and 2010-11 have not been admitted after
prudence check by the Commission.
Petitioner’s submission
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Bihar Electricity Regulatory Commission Page 31
BSEB has filed the tariff petition as per BERC (Terms and conditions for
determination of Tariff) Regulations, 2007. BSEB has provided all the necessary
details related to capital expenditure for three functions of BSEB i.e. Generation,
Transmission and Distribution in its tariff petition. BSEB has also provided the
funding details of the proposed capex along asset capitalization schedule. Further for
past years the Commission has considered capital cost as per the audited accounts
of BSEB.
Commission’s observation
The Commission has taken into consideration the views of the objectors and will
prudently check the data provided by BSEB while approving the capital costs.
3.2.8 Issue: Depreciation
M/s Kalyanpur Cement Limited observed that out of seven (7) generating stations run
by the Board only one unit (Unit No. 6) is functioning. Therefore, unit No. 1 to5 and 7
are non-productive assets and depreciation cannot be claimed from the consumers in
respect of these units. Further, it was pointed out that the recovery of Depreciation of
Unit no. 6 should be restricted to actual average PLF.
M/s Balmukund Concast Limited stated that the Petitioner has estimated addition of
Rs 191.66 (280.66 – 89.0) crores as depreciation cost for FY 2012-13 over the
depreciation cost claimed in FY 2010-11. Huge addition in depreciation cost shows
that a considerable amount has been incurred over asset creation in FY 2010-11 and
FY 2011-12. The Board should provide documentary evidence to substantiate that
the asset has been created in FY 2010-11 and FY 2011-12 and suggested that the
Commission should be fair enough to allow the depreciation charges on the basis of
actual for the FY 2010-11.
Petitioner’s submission
The BSEB submitted that it calculated the depreciation in accordance with the asset
base of the BSEB and the asset wise accumulated depreciation. The depreciation
has been projected on the basis of allowed depreciation rates and straight line
method of depreciation calculation as specified by the Commission in BERC (Terms
and conditions for determination of Tariff) Regulations, 2007. As stated earlier no
depreciation has been claimed on non-productive assets.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 32
Commission’s observation
The Commission shall take into consideration the views of the objectors while
approving the costs and depreciation claimed by BSEB will be checked prudently
while approving the depreciation in chapter -6.
3.2.9 Issue: Interest and Finance Charges
M/s Kalyanpur Cement Limited pointed out that since the loans have a one year
moratorium, no interest charges on ‘new loans’ should accrue during FY 2012-13.
However, the petition states Rs 705.72 crores against this head. Further, no interest
is payable on state government loans if the Board does not have any surplus after
meeting operating expenses. The Board has to pay interest on security deposit taken
from consumers, however the interest paid to the consumers is being retained and
has been included in the ARR.
M/s Balmukund Concast Limited highlighted that the Petitioner has projected Rs
705.72 crores as Interest and Finance charges for FY 2012-13 against Rs 149.01
crore approved by the Commission in Tariff Order for FY 2011-12. It was suggested
that the Commission should check the details of the assets created during the current
year i.e. FY 2011-12 which will come under use in FY 2012-13.
Petitioner’s submission
Interest and finance charges include the interest liability of BSEB for the loans
borrowed for capital works. In the past years, BSEB has added significant network to
its existing network by expanding in rural areas for which it has borrowed funds from
financial institutions. In FY 2012-13, BSEB plans to spend Rs. 4352 Cr. for capital
works. Accordingly the interest and finance charges have been increasing steadily
owing to the increased capital investment made by BSEB. There has also been
commensurate increase in asset base of BSEB as provided in the books of accounts
of BSEB. The rates and other conditions of the loans (for interest computation) are
strictly in accordance with the terms and conditions of the loan.
The State Government as the owner of BSEB has providing BSEB with all possible
assistance in meeting its cash losses and funding requirements as per the conditions
of central sponsored schemes. BSEB has at times not paid the State Government
interest and principal due for the year. However the cost of funds received from the
State Government should be considered as part of the ARR and tariff.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 33
BSEB has not claimed interest paid to consumers for consumer security deposited by
them as an item of cost in the ARR for FY2012-13.
Commission’s observation
The Commission will consider the views of the objectors about interest and finance
charges while approving the costs on this account. Interest and finance Charges will
be considered after prudence check in chapter -6.
3.2.10 Issue: Interest on Working Capital
M/s Balmukund Concast Limited and M/s Gangotri Iron & Steel Company Limited
have stated that the Petitioner’s claim of interest on working capital of Rs 211.67
crores for FY 2012-13 is not justifiable as the BSEB has not created any working
capital fund. It was also observed that the Board is using employee’s contribution in .
GPF and Group Saving Schemes, security deposit from the consumers and grant
from Government as their working capital and so charging interest on working capital
is not acceptable. Accordingly, the Commission should prudently check the amount
of working capital.
Petitioner’s submission
The Board has submitted that it has proposed interest on working capital on
normative basis as per the BERC (Terms and conditions for determination of Tariff)
Regulations, 2007.
Commission’s observation
The Commission has dealt with the tariff setting process in line with the BERC
(Terms and conditions for determination of Tariff) Regulations, 2007. However,
wherever deemed necessary, the expenses have been re-examined and approved
after proper prudence check.
3.2.11 Issue: Return on Equity
Central Bihar Chamber of Commerce, South Bihar Industries Association, Divisional
Chamber of Industry & Commerce, Bihar Chamber of Commerce, M/s Gangotri Iron
& Steel Company Limited and M/s Balmukund Concast Limited pointed out that in the
petition, BSEB has calculated the return on equity (RoE) by treating its gross fixed
assets (net of grants and subsidies) as equity capital, however BSEB’s capital
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 34
structure is constituted wholly of debt taken from State Government, Government of
India, LIC, REC, PFC and commercial Banks etc. Further, in its last Tariff Order
BERC ha rejected the plea of BSEB; thus, the BSEB’s request to allow RoE does not
have any basis, and so it may be rejected by BERC.
Petitioner’s submission
BSEB is an integrated electricity utility constituted under Clause 5, Chapter – III of
The Electricity (Supply) Act, 1948. BSEB is mainly funded through loans and grants
from the Government of Bihar, loans and grants under specialized funding schemes
of the Government of India and loans from commercial lending organizations.
In states like Jharkhand, Punjab, Chhattisgarh and Kerala, where integrated SEB’s
like BSEB were / are operational, the Appropriate Commissions have allowed a
reasonable return on equity despite the fact they have capital structure which is very
much similar to that of BSEB and is mainly funded through loans/ grants from
respective State Governments.
In view of the above, BSEB has prayed for consideration of a reasonable return of
14% on capital grant provided by the State Government. As BSEB is a Board and not
a company so equity contribution can come only by way of grant and not equity.
Return on Equity would enable BSEB to contribute its share of funding in various
centrally funded schemes. Otherwise it would have to depend upon state government
for continuous support. This would limit the ability of BSEB to raise funds for
investment in the sector. Hence BSEB has requested to provide reasonable return on
the capital provided by the State Government.
Commission’s observation
The Commission agrees with suggestions made by the objectors. Since BSEB does
not have any equity base, return on notional equity as proposed by BSEB cannot be
allowed.
3.2.12 Issue: Transmission & Distribution Losses
M/s Dadiji Steel, M/s Kalyanpur Cements, Bihar Industries Association, Bihar Steel
Manufacturer’s Association, M/s Gangotri Iron & Steel Company Limited, Bihar
Chamber of Commerce, Central Bihar Chamber of Commerce, South Bihar
Industries Association, Divisional Chamber of Industry & Commerce, North Eastern
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 35
Bihar Chamber of Commerce and Industries, Eastern Bihar Industries Association
and M/s Patwari Steel Private Limited have objected to T&D loss trajectory as
proposed by the Board for FY 2012-13. T&D loss projected by the Board is 42% for
the FY 2011-12 and 41% for the FY 2012-13 as against the Commission’s target of
29% for FY 2011-12 and 27.5% for FY 2012-13. The stakeholders also submitted
that the Commission should take strong action against the Board for their
ineffectiveness in reducing T&D losses as the consumers have to suffer for the
inefficiency of the Petitioner.
They further stated that the approval of higher T&D loss than what is actual for the
HT consumers would result into indirect cross-subsidy and will also impose additional
burden on a HT consumers.
M/s Bal Mukund Concast Limited stated that the actual technical line loss right from
the transmission system upto the level of distribution is normally 12% to 14% of the
total energy fed into the system and suggested that the Commission should give
target to achieve T&D loss level of 14% by FY 2017-18.
The Consumers during the public hearing stated that the Board should make all-out
effort to bring down its T&D losses. They stated that the Board should provide the
road map for loss reduction.
Petitioner’s submission
The Board submitted that the Commission in the Tariff Order for FY 2011-12 had
restated the T&D loss levels for BSEB on account of reassessment of sales based on
restricted hours of supply. The T&D loss levels were fixed at 29%, 27.5% and 26%
for 2011-12, 2012-13 and 2013-14, respectively.
The Commission had restated norms of unmetered consumption for Kutir Jyoti
connections in rural areas from 30 units per month to 18 units per month and
Agriculture connections from 2000 units per annum to 1485 units per annum. Such
restated consumption norms are not reflective of the actual consumption by these
categories and is adding to the T&D losses of the BSEB.
On account of the high level of T&D losses and the disallowances of costs in the
previous Tariff Order issued by the Commission, BSEB is incurring substantial
financial loss. Consequently there have been occasions when it has not able to meet
the cost of power purchase and O&M expenses. This is also adversely affecting the
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 36
BSEB’s ability to undertake network improvement/ extension and loss reduction
works. Accordingly, BSEB’s ability to reduce losses in the FY 2011-12 and FY 2012-
13 have been restricted and the losses have remained at the 44% level as recorded
in FY 2010-11. Hence BSEB has filed the ARR petition based on actual loss level.
BSEB further submitted that it is making sincere efforts to reduce distribution losses
by providing meters to unmetered consumers, undertaking network up-gradation/
improvement projects and undertaking R-APDRP projects in selected towns. BSEB
has also been engaged in conducting raids in theft prone areas to catch
unscrupulous consumers and curb malpractices adopted by such consumers.
However, even after such concerted efforts, the losses of BSEB have not come down
owing to the fact that a large number of consumers (approximately 27 lakhs) are
being added in the rural areas under BPL connections under RGGVY scheme.
Substantial expansion of the network in rural areas has also led to increased
exposure of network to pilferage/theft. Hence the losses have not come down even
after concerted efforts by BSEB.
Commission’s observation
The Commission fully agrees with the views of the consumers and feels that the
Petitioner has failed to show improvement in the T&D loss reduction. The
Commission does not find any merit in passing on the inefficiencies of the Board in
the past and present to the consumers beyond the loss levels approved by the
Commission. Therefore, the Commission has also decided to continue with the
trajectory approved in its Tariff Order for FY 2011-12. The Commission has also
given directives to the Petitioner for submission of a detailed T&D loss reduction road
map so that the Petitioner is able to achieve the trajectory as laid down in the
previous Tariff Orders.
3.2.13 Issue: Non-Tariff Income
M/s Balmukund Concast Limited has observed that the Petitioner has projected the
non - tariff income of Rs 55.11 Cr. only for FY 2012-13 as against Rs 168.23 Cr.
approved by the Commission for FY 2011-12. Also, the Board has purposely kept the
non-tariff income at lower level for FY 2012-13 to increase the revenue gap and this
has no basis.
Petitioner’s submission
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 37
The BSEB submitted that it has not proposed DPS and interest on investment as part
of non- tariff income. The detailed justification for the same is provided in point no.
2.23 of tariff petition for FY 2012-13.
Commission’s observation
The Commission will consider the views of the objectors about Non-Tariff income
while approving the costs. While 5% of DPS reflected in the accounts as recoverable
has been considered as non tariff income, carrying cost of DPS has allowed as cost.
3.2.14 Issue: Government grant and subsidy
M/s Dina Iron & Steel, Bihar Chamber of Commerce, Central Bihar Chamber of
Commerce, South Bihar Industries Association and Divisional Chamber of Industry &
Commerce submitted that the Government grant should not be used to cover higher
T&D loss of BSEB. From the very beginning Government grant is being paid directly
to NTPC and is meant for power purchase. ARR and tariff till date have been fixed
taking Govt. grant as resource gap grant; and the reason behind increasing the Govt.
grant from Rs. 60 Cr. to Rs. 90 Cr. was the increase in power purchase cost due to
use of imported coal by NTPC. It was also stated that the Government cannot use
public money to finance inefficiency and theft. Such a practice, if allowed will lead to
higher inefficiency and purpose of tariff fixation will be defeated.
M/s Balmukund Concast Limited objected to the Board’s proposal to consider only Rs
124.26 Cr. as State Government subsidy to consumers. It was suggested that the
Commission should take into consideration the full amount of the grant received from
State Government for the purpose of subsidy to consumers.
Petitioner’s submission
It is here necessary to take into consideration that the BSEB is owned by
Government of Bihar. Any financial losses incurred by BSEB should be compensated
by owner of BSEB. The Commission has also appreciated this fact in its Tariff Order
for FY 2011-12 dated 1st June, 2011, while disallowing the request of BSEB for re-
fixing higher T&D loss reduction trajectory and observed that “if BSEB is not able to
meet loss reduction trajectory due to implementation of Government sponsored
RGGVY scheme, then it should ask the State Government for subsidy to compensate
for the increased T&D losses”.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 38
Treatment of resource gap funding is done on the basis of direction received from
Energy department of the Government of Bihar. The State Govt. has clarified that the
resource gap funding will be first used to compensate BSEB for financial losses
arising on account of consideration of normative T&D losses as against actual T&D
losses. Remaining amount of resource gap funding will be used for subsidizing
agriculture and rural consumers.
State Government grant provided for replacement of meter and conductor is capital
grant and not revenue grant. From the capital grant provided by State Government,
assets are created based on the purpose for which grant is provided.
Commission’s observation
The objections by the objectors and response from the Board are noted. The
Commission has addressed the issue related to Government grant and subsidy in
detail in this tariff Order. Government grant has been treated as per the clarification
issued by the State Government in this regard.
3.2.15 Issue: Tariff rates
According to Bihar Chamber of Commerce the BSEB has proposed sharp tariff hike
for all consumers, particularly industrial consumers which is agains the norms and
objective of tariff fixation.
Central Bihar Chamber of Commerce, South Bihar industries Association, Vidyut
Upboghta Sangarsh Samiti, Eastern Bihar Industries Association have opposed the
proposed tariff hike for FY 2012-13 in fixed charges, energy charges and
miscellaneous charges. It has been pointed out that the Board has proposed around
50% tariff hike for FY 2012-13 which will create an extra burden on the consumers
across all the consumer categories which is not justifiable.
Shri Doman Singh, was of the view that there has been a substantial increase in
demand and energy charges for the domestic consumers below and upto 5kW single
phase supply as well as for domestic consumers with 5kw and above three phase
connection. He quoted tariff schedules of Haryana and Gujarat, highlighting that the
fixed charges in these states for domestic consumers is at concessional rates. The
Consumers also suggested that since BSEB is already charging fixed cost in the
shape of fixed charges, separate development charges should not be allowed.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 39
Petitioner’s submission
The Board submitted that tariff has been proposed in view of the increase in various
cost components and gap between ARR and revenue from projected sale at existing
tariff. BSEB has worked out its ARR Requirement based on the BERC (Terms and
conditions for determination of Tariff) Regulations, 2007.
The Petitioner has given reference to Clause 8.3.21 of the Tariff Policy and submitted
that conditions of other States vastly differ especially in respect of own generation
and power purchase mix, thermal & Hydel mix, deficit/surplus in power, consumer
mix and cost mix. The tariff rates in Bihar are therefore not comparable with other
States without consideration of these inputs to the sector.
The BSEB further submitted that it has to incur fixed and variable costs for its
operations. Fixed charges are levied for recovery of fixed costs and energy charges
are levied for recovery of variable costs. Proposed increase in fixed charge reflects
the increase in fixed costs of BSEB. Prudent tariff structure is required for the
recovery of fixed charges and variable charges.
For FY 2012-13, BSEB has proposed total ARR of Rs. 7898.13 Cr. out of which Rs.
2600.51 Cr. are of fixed nature while Rs. 5297.61 Cr. will be used for power purchase
and fuel cost of own generation. Currently, BSEB is able to recover only Rs. 687 Cr.
& Rs. 1109 Cr. working out to 26% & 43% of fixed costs from demand/fixed charges
based on the existing tariff & proposed tariff respectively.
BSEB further submitted that the proposed changes in tariff are as per the cost
incurred by BSEB in providing these services. Any income earned from this will
ultimately passes on to consumers by way of reduced ARR.
Development Charges are being proposed for recovery of cost incurred by BSEB
while providing new connection. Cost is proposed to be recovered one time only as
development charges.
Commission’s observation
1 “For achieving the objective that the tariff progressively reflects the cost of supply of electricity, the SERC would notify roadmap within six months with a target that latest by the end of year 2010-2011 tariffs are within ± 20 % of the average cost of supply. The road map would also have intermediate milestones, based on the approach of a gradual reduction in cross subsidy”
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 40
The Commission has endeavoured to allow a reasonable and balanced tariff in this
order keeping in view practical and operational aspects and constraints. While the
Commission has endeavoured to determine the tariff to meet the ARR of BSEB,
lower tariff for smaller consumers and gradual reduction in cross-subsidy has also
been done.
3.2.16 Issue: Minimum Monthly Charge (MMC)/ Annual Minimum Guarantee (AMG)
Central Bihar Chamber of Commerce, South Bihar Industries Association, Divisional
Chamber of Industry & Commerce, Bihar Steel Manufacturers Association, Kalyanpur
Cements, M/s Gangotri Iron & Steel Company Limited and M/s Dadiji Steel limited
have stated that in Tariff Order for FY 2011-12 the Commission was of the view that
MMC needs to be gradually phased out. Further, it was stated that the Commission
was of the view to convert MMC to Annual Minimum Guarantee in some of the HTS
category to facilitate the consumers to cover the consumption in one financial year.
It was also suggested that the Commission should not provide any Annual Minimum
Guarantee/ Monthly Minimum Charges (AMG/ MMC) in the Tariff Order and if it is at
all provided, proportionate reduction both in demand and energy charges be allowed
by the Commission if the hours of supply is less than committed hours of supply by
the Board.
Bihar Steel Manufacturers Association, Bihar Chamber of Commerce, M/s
Balmukund Concast Limited and M/s Gangotri Iron & Steel Company Limited have
pointed out that the Petitioner has proposed a demand charge of Rs 900/KVA/ month
for HTSS consumers which is too high demand charges and has no basis. They were
of the view that the demand charge to HTSS consumer be kept at par with that of
Jharkhand. M/s Gangotri Iron and Steel Company Limited has suggested that the
provision of fixing contract demand on the basis of 600 KVA per MT should not be
allowed and the consumer should be allowed to contract as per their requirement
which is recorded in the electronic meter and not on the basis of the connected loads
of induction furnaces.
M/s Gangotri Iron & Steel Company Limited and M/s Bal Mukund Concast Limited
were of the view that demand charge for most of the HT consumers is taken as 85%
of the contract demand, however, in case of HTSS consumers the demand charges
are 100%, and no basis has been given for the discrimination.
Petitioner’s submission
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 41
MMC is a normally accepted practice in many states in the country and the BSEB
accordingly prayed for consideration of the Commission. This has already been
settled in the appeal made against the Tariff Order issued by BERC for the FY 2008-
09 by the Hon'ble APTEL.
For FY 2012-13, BSEB has proposed total ARR of Rs. 7898.13 Cr. out of which Rs.
2600.51 Cr. are of fixed nature while Rs. 5297.61 Cr. will be used for power purchase
and fuel cost of own generation. Currently, BSEB is able to recover only Rs. 687 Cr.
& Rs. 1109 Cr. working out to 26% & 43% of fixed costs from demand/fixed charges
based on the existing tariff & proposed tariff respectively. In such scenario, it is very
much necessary to levy MMC on consumers so that BSEB can at least recover its
fixed cost.
Further, The Objector is not burdened by MMC as Government of Bihar is assisting
them under Bihar Industrial Policy 2011. If the actual consumption during a month
falls below MMC the State Govt. will compensate BSEB with the equivalent amount,
on behalf of the consumer.
The Board submitted that the method of billing for HTSS consumers is based on the
decision taken at the time of creation of this category with mutual consent of the
BSEB and the representatives of Bihar Steel Manufacturer Association.
This matter was raised during earlier tariff proposals and was settled in the last Tariff
Order of the BERC. The contract demand on the basis of 600 KVA/MT capacity was
the original basis taken into consideration for creating new category of HTSS and the
same method is in use for more than 10 years. However, new HTSS units have been
allowed to have contract demand as per technical specification of the machineries.
The Commission has already agreed to follow the practice of other SEBs to fix the
contract demand as per technical specifications in respect of new units. Conditions of
other States vastly differ especially in respect of generation and power purchase mix,
deficit/surplus in power, consumer mix and cost mix. The tariff rates are therefore not
comparable with rates in other States without consideration of sector inputs.
BSEB stated that the objective of providing for demand charge is to ensure efficient
network utilization. Considering that BSEB has installed large infrastructure for
distribution of energy, for the upkeep of which it incurs costs like depreciation,
interest cost, R&M and O&M costs etc., The consumers should utilize the network to
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 42
an optimal level failing which BSEB will not be able to recover its returns on
investment and other fixed costs. Hence in order to ensure recovery of the returns on
investments and other fixed costs, a demand charge is proposed to be levied.
Further this is an accepted practice in most of the states in the country and BSEB
has accordingly prayed for consideration of the Commission. This issue has already
been settled in the appeal made against the Tariff Order issued by BERC for the FY
2008-09 by the Hon'ble APTEL.
As per Section 45 (2) of the Electricity Act 2003
“(2) The charges for electricity supplied by a distribution licensee shall be -
(a) fixed in accordance with the methods and the principles as may be specified by the concerned State Commission;
(b) published in such manner so as to give adequate publicity for such charges and prices.
(3) The charges for electricity supplied by a distribution licensee may include -
(a) a fixed charge in addition to the charge for the actual electricity supplied;
(b) a rent or other charges in respect of any electric meter or electrical plant provided by the distribution licensee.
(4) Subject to the provisions of section 62, in fixing charges under this section a distribution licensee shall not show undue preference to any person or class of persons or discrimination against any person or class of persons.
(5) The charges fixed by the distribution licensee shall be in accordance with the provisions of this Act and the regulations made in this behalf by the concerned State Commission.
Commission’s observation
The Commission has noted the objections and response and has taken appropriate
decision in this regard. On the issue of MMC, the Commission is of the view that it
needs to be gradually phased out. Accordingly, AMG for HT consumers has been
done away with in FY 2012-13.
3.2.17 Issue: Tariff rebates
Rebate for timely payment: The Petitioner has proposed a rebate of ten (10)
paise/unit for LT consumers and one (1) paise / unit for HTSS consumers for paying
energy bills on or before due date of payment. Some HT Consumers suggested that
same rebate of ten (10) paise/ unit as being allowed to L.T. consumers should be
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 43
allowed to HTSS and HT consumers, so that there may not be any discrimination
among various classes of consumers of LT and HT. Bihar Chamber of Commerce,
Central Bihar Chamber of Commerce, South Bihar Industries Association and
Divisional Chamber of Industry & Commerce have suggested to introduce Advance
Payment as an option for security deposit and interest paid on such advance
payment should be equal to DPS charged from customers.
Load factor rebate: The Consumers have opposed the Petitioner’s proposal to
withdraw the rebate for higher consumption on excess units consumed and
suggested that the load factor rebate should be allowed in line with the earlier Tariff
Orders for FY 2008-09 and FY 2010-11.
Power Factor rebate: M/s Balmukund Concast Limited have suggested to allow the
rebate for improvement in power factor over 0.9. Bihar Chamber of Commerce has
stated that power factor goes down due to frequent trippings and inferior quality of
power supply. Further, they stated that there should be no penalty for power factor
between 0.85 and 0.90.
Petitioner’s submission
Prompt payment rebate: It is responsibility of consumer to pay bill in time and for the
discharge of this responsibility consumer requires no incentive.
On Advance Payment: Interest on Advance payment and DPS cannot be treated in
the same manner. DPS is charged as penalty and hence it has higher rate of 18%
per annum.
Load Factor rebate: BSEB submitted that it does not see any merit to continue the
load factor rebate. Bihar is a power deficit state, at current scenario BSEB is
procuring power through short term and medium term sources to meet the increased
demand of the state. The cost of procuring power from such sources is high and
therefore increased consumption results in increased power purchase cost for BSEB.
The load factor rebate is against the conservation of power and it may increase the
power purchase cost. The under recovery of cost will get reflected in higher rate for
other consumer categories.
Power Factor Rebate: Higher power factor helps in reducing losses and improve
system voltage so it is the responsibility of all consumers to improve power factor.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 44
The consumers of the state have taken steps to improve system and in this context
the proposed power factor rebate is appropriate.
Neighbouring states are also giving power factor rebate at higher power factor as
compare to Bihar. Power factor rebate is given at 97%, 95%, 95% & 92% by Orissa,
Madhya Pradesh, Uttar Pradesh & West Bengal respectively..
Commission’s observation
The Commission has taken into consideration the views of the objectors and
response of the Petitioner and allowed different types of tariff rebates accordingly.
3.2.18 Issue: Supply at premium rate
M/s Dadiji Steel Limited and Bihar Steel Manufacturers Association have stated that
it is statuary obligation of the Board to supply electricity continuously according to the
needs of the consumers and for which they cannot charge premium tariff under any
circumstances.
Bihar Chamber of Commerce, Central Bihar Chamber of Commerce, South Bihar
Industries Association and Divisional Chamber of Industry & Commerce have stated
that it is highly unlikely that the Board would be able to ensure uninterrupted power
supply even in so called “premium supply” areas. They also added that under the
present field conditions, first norms should be fixed as to what constitutes “premium
supply”. Further, Bihar Chamber of Commerce opposed the Board’s proposal of
defining “premium supply” as supply of 600 hours in a month. It was also suggested
that in case the supply hours of the premium area falls below 24 hrs. a penalty
should be imposed on the Petitioner.
Petitioner’s submission
As directed by the Commission in its Tariff Order for FY2011-12, BSEB has proposed
a Supply Premium to be payable by consumers who receive additional hours of
supply as compared to other consumers. It is proposed that all LT consumers except
Kutir Jyoti and Agricultural and HTS I consumers who lie in such areas which will
receive continuous supply atleast for 600 hours in a month will be required to pay
additional 10% on demand/fixed and energy charge and in MMC as supply premium.
The continuous supply mean normal supply excluding the duration of grid failure,
plant failure of power supplier, any force majeure condition, scheduled shut down,
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 45
emergent breakdown and restriction of power supply by the Commission under
section 23 of Electricity Act, 2003.
Which provides inter-alia
“23 Directions to Distribution Licensee: if the appropriate Commission is of the
opinion that it is necessary or expedient so to do for maintaining the efficient supply,
securing the equitable distribution of electricity and promoting competition, it may, by
order, provide for regulating supply, distribution, consumption or use thereof .”
Areas to which BSEB intends to supply electricity close to 600 (six hundred) hours
will be notified by BSEB and the proposed Supply Premium will be levied after such
notification.
Commission’s observation
The Commission has noted the views of objectors and response from the Petitioner.
However, the Commission has already specified in the Tariff Order for FY 2011-12
that 10% premium on demand/fixed and energy charge and in MMC tariff shall be
applicable to the consumers in the areas where BSEB intends to supply electricity
close to 24 (twenty four) hours. Such areas shall be notified by BSEB and the
premium shall be levied after notification of such area by BSEB.
Commission also clarifies that the Petitioner can charge premium over the normal
tariff from consumers of such areas getting nearly 24 hours of supply from 33kV or
11 kV feeders to all LT categories and 11 kV categories except Kutir Jyoti and
Agricultural consumers who will be subsidised by the Government. The continuous
supply shall mean the normal supply excluding the grid failure, any force majeure
condition, scheduled shut down and emergent breakdown.
3.2.19 Issue: ToD Tariff
Bihar Chamber of Commerce, Central Bihar Chamber of Commerce, South Bihar
Industries Association and Divisional Chamber of Industry & Commerce have stated
that the TOD tariff should be made beneficial to consumers, so that more and more
consumers voluntarily opt for it. The present ToD tariff acts as a dis-incentive to the
Consumers as they are charged 20% extra during peak hour while the discount
during off-peak period is only 15%.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 46
Petitioner’s submission
Time of Day (TOD) tariff, is recognized globally across electricity industries, as an
important Demand Side Management (DSM) measure for incentivizing consumers to
shift a portion of their demand from peak to off-peak period, thereby improving the
system load factor by reducing the demand during the peak period and reducing the
requirement to purchase costly power during this period.
The table below presents the status of TOD tariffs as implemented in various states
of the country:
Table 5: Status of TOD tariff implemented in variou s states States Peak Hours Off Peak Hours
Assam 160% 83%
Chhattisgarh 130% 85%
Jharkhand 120% 85%
Kerala 130% 85%
Madhya Pradesh 130% 90%
Tamilnadu 120% 95%
Tripura 140% 60%
Uttaranchal 125% 95%
Assam 160% 83%
Further, BSEB would like to state that the TOD tariffs as applicable in most of the
states (Maharashtra, West Bengal, HP, MP, Gujarat, Uttarakhand, UP, Kerala, Tamil
Nadu, and Tripura) are mandatory for HT and EHT Consumers.
Commission’s observation
The Commission has noted the views of the objectors and response from the
Petitioner. The Commission is of the view that gradually TOD tariff should be made
mandatory.
3.2.20 Issue: Open Access
M/s Dadiji Steel Limited, Bihar Steel Manufacturers Association stated that the Board
should be directed to provide the open access facility to its high tension supply
consumers, who had given notice to them for providing open access.
M/s Gangotri Iron and Steel company Limited has highlighted that as per notification
issued by Ministry of Power vide No. 23/01/2008 – RXR (Vol – IV) dated 30.11.2011,
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Bihar Electricity Regulatory Commission Page 47
the consumer having contract demand of one (1) MW and above are to be deemed
as open access consumers and the SERC does not have to determine the tariff of
such consumer treating them as open access Consumer. It has been suggested that
the Commission should determine the tariff for HTSS consumer treating them as
open access consumer and shall specify the stand by charge in respect of demand
charge.
Petitioner’s submission
There is separate regulation issued by the BERC for Open Access, which governs
issues related to open access. The same cannot be deliberated in the present tariff
petition.
Commission’s observation
The Commission would like to encourage Open Access to consumers. While cross
subsidy surcharge has been retained at the level of FY 2011-12 at 50% of the value
specified in Tariff policy, other terms and conditions of open access will be
considered in Open access regulations.
3.2.21 Issue: Seasonal Tariff
Central Bihar Chamber of Commerce, South Bihar Industries Association and
Divisional Chamber of Industry & Commerce have suggested that the tariff rates
should be rationalised in view of the State Government Policy to encourage and
invite fresh investment in sugar mills, rice mills and cold storages etc. which operate
during certain period of the year. i.e having seasonality of operation.
Petitioner’s submission
BSEB submitted that it has proposed the changes in Seasonal tariff based on the
marginal cost of power procurement of the Board.
Commission’s observation
The objections and response are noted by the Commission and has been dealt in
Chapter 6 of this Tariff Order.
3.2.22 Issue: Special Plea: Railway Traction tariff
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Bihar Electricity Regulatory Commission Page 48
Senior Divisional Electrical Engineer (East Central Railway, Danapur) stated that the
Board’s tariff for Railway traction has been unreasonably and disproportionately high.
He stated that the Board has revised the traction tariff 4 times since 2001 which has
risen by 113.96% taking into considering the current Board’s proposal for FY 2012-
13. In the objections raised by the East Central Railway representative It was pointed
out that the Board Average Cost per unit is higher than JSEB, UPPCL and DVC. The
Objectors has opposed the Board’s proposal for imposing penalties on exceeding the
Contract Demand at Railway TSS as this is mainly due to various external factors
which are beyond the control of Railways.
Senior Divisional Electrical Engineer (East Central Railway, Danapur) has also
opposed the Board’s proposal that ‘the Transformer Capacity of HT Consumer (RTS)
shall not be more than 200% of the Contract Demand’. He has requested the
Commission to exempt the RTS from the Board’s Terms and conditions and allowing
them to use the RDSO’s standard designed Transformer Capacity.
The objector refered to Article 287 of the constitution and stated that the Power tariff
for the Railways should be reasonable and should not be very different from the
actual cost incurred by the supply companies for the generation and distribution of
Power.
The Objector has also requested the following to the Commission:-
a) The Billing demand should not be taken as maximum demand recorded during
the month or 75% of the Contract Demand.
b) Load factor rebate for calculating base energy should be 25%.
c) Power factor rebate should be as per existing norms.
Petitioner’s submission
BSEB submitted that Bihar has different consumer mix, power purchase cost and
fixed costs so Electricity tariff in Bihar cannot be compared with other states. BSEB
has proposed tariff average tariff hike of 56.77% but for railways it has proposed only
36.79% tariff hike. Average Revenue realisation as compare to Cost to Service is
89% and that is same as approved by the Commission in its Tariff Order for FY 2011-
12. The Board submitted the following response over the issues raised by Railway’s
representatives:
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Bihar Electricity Regulatory Commission Page 49
a) Abnormal hike in railways traction tariff: Proposed tariff hike is as per revenue
requirement of BSEB and reflects the cost of supply of electricity.
b) Penalty for exceeding contract demand: The Contract demand allowed to
Railways forms a part of the contract between railways and BSEB. It is logical to
include as a part of the contract provisions for redressal of violation of the
contract conditions. The penalty for demand violation is a part of such provisions.
Further similar penalty provisions have been provided for contract demand
violation by other HT consumer categories. It would be against the natural justice
to treat consumers differently for violation similar conditions of contract. Further if
the consumers are allowed to draw power from the grid without any restriction on
demand, this would detrimental for grid security, safety of local network and
would inhibit planning of power purchase.
c) Transformer capacity: Relaxation in this regard have been provided to Railways
over conditions able to other HT categories, while other HT category cannot have
transformer capacity more than 150% of contract demand whereas Railways can
have transformer capacity equal to 200% of contract demand. Further Railways
are entitled to have a standby arrangement of equivalent capacity. If the Railways
require transformer of higher capacity then they can request BSEB for increase in
contract demand.
d) Billing demand: The request of Railways cannot be accepted as the treatment in
this regard has to be at par with treatment to other HT consumers.
e) Load Factor: BSEB has realised that most of the TSS connections of railways
are having load factor of more than 50%, keeping this in view the load factor of
50% has been proposed in this tariff petition. Since Railways is maintaining load
factor of more than 50% BSEB does not see this as a cause of concern for
Railways.
f) Power factor rebate: Higher power factor helps in reducing losses and improve
voltage so it is responsibility of consumer to improve power factor and to
encourage consumer to maintain high power factor such tariff structure is being
proposed. Neighbouring states are also giving power factor rebate at higher
power factor as compare to Bihar. Power factor rebate is given at 97%, 95%,
95% & 92% by Orissa, Madhya Pradesh, Uttar Pradesh & West Bengal
respectively.
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Bihar Electricity Regulatory Commission Page 50
Objector’s rejoinder over Petitioner’s submission
The Objector stated that the Railway is public serving organisation. Hike in Railway
traction tariff by 36.79% in one year will affect the E.C. Railway’s economic condition.
He stated that the load of Railway is of fluctuating nature and load increase in a
traction feeding zone for a short period i.e. 15 to 30 minutes. This leads to increase in
maximum demand.
Over Transformer capacity issue the objector stated that Transformer capacity is of
21.5 MVA a standard design based on RDSO specification. It is designed to feed the
minimum two feeding Zone so that the train operation may not be interrupted in case
of failures.
The Objector again replied to the Board’s response and opposed the Board’s
proposal pertaining to Billing Demand, Load factor issue and Power factor rebate.
Commission’s observation
The Objections and response from the Board are noted.
The Commission is of the view that Article 287 of the Constitution provide expemtion
from taxes on electricity. As per the Article 287 of the Constituion:
“……, no law of a state shall impose, or authorise the imposition of, a tax on the
consumption or sale of electricity (whether produced by a Government or other
persons), which is –
a) Consumed by the Government of India, or sold to the Government of India for
consumption by that Government; or
b) Consumed in the construction, maintenance or operation of any railway by the
Government of India or a railway company operating that railway, or sold to that
Government or any such railway company for consumption in the construction,
maintenance or operation of any railway,….”
The Commission will take a rational reasonable view while determining tariff and
other terms and conditions of supply for Railways Traction Services. However, the
Commission does not agree to the proposal of increasing the billing demand and
load factor.
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Bihar Electricity Regulatory Commission Page 51
3.2.23 Issue: Matter related to Electricity Supply code
Bihar Chamber of Commerce, Bihar Industries Association, Central Bihar Chamber
of Commerce, South Bihar Industries Association, Divisional Chamber of Industries
and Commerce, M/s Gangotri Consumers have suggested if the Petitioner wants any
change in the provisions of Bihar Electricity Supply Code, suitable amendment may
be sought in the court. Further, it has been pointed out that there are various other
changes proposed by the Petitioner such as voltage surcharge, Security deposit,
accounting for partial payment, load factor and penalty for RTS, transformer capacity,
cap on overall rebate, withdrawal of rebate, tatkal connections, notice period for
disconnection, removal of any MMC or Fixed charge etc. All these changes proposed
by the Petitioner should be considered by way of amendment in Electric Supply
Code. It was suggested that the same should be dealt with separately and should not
be a part of tariff fixing exercise.
Petitioner’s submission
In this regard, no specific response has been provided by the Board.
Commission’s observation
The Commission is also of the view that generally the terms and conditions of supply
which are part of Electricity Supply Code should be considered through amendment
in the code and no revision should be made in the provision of Electricity Supply
code in the Tariff Order.
3.2.24 Issue: Security Deposit
M/s Kalyanpur Cement Limited, Central Bihar Chamber of Commerce, South Bihar
Industries Association and Divisional Chamber of Industry & Commerce objected to
the proposal of the Petitioner for enhancing the security deposit to the level
equivalent to estimated energy charges of three months. M/s Balmukund Concast
Limited has pointed out that the Board’s proposal is contrary to the provisions of
Bihar Electric Supply Code, 2007. Moreover, the Board is not investing the amount
deposited by the consumers appropriately like in fixed deposit or in capital works.
Petitioner’s submission
As per the Bihar Electricity Supply Code, 2007 the deposit shall be accepted in the
form of cash, cheque or draft in case of LT consumers and in the form of draft or
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Bihar Electricity Regulatory Commission Page 52
banker’s cheque in case of HT consumers. Also as per the Code the distribution
licensee shall pay interest, at the bank rate notified by the Reserve Bank of India
from time to time on such security deposits taken from the consumers. Moreover,
cash security deposit is taken because the supply to the consumer is given initially on
credit basis. The cash is required to meet the monthly expenditure on revolving basis
to provide electricity to consumer. This is also in-line with the Section 47(4)2 of the
Electricity Act 2003.
BSEB has proposed to increase the initial security deposit of the consumer (except
Kutir Jyoti rural and Kutir Jyoti urban) equivalent to the estimated energy charges
including fixed/demand charges for a period of three months as per the Tariff Order
issued by the Commission for FY 2006-07. This takes into consideration the time
involved in the process of Consumer meter reading till the receipt of the payment of
the bill by the consumers. This is further supported in case of realization of payment
through cheques.
Any concessional funding provided by consumers helps BSEB in reducing the cost of
supply which ultimately benefits the consumers of the state. The interest rates
suggested by the objector for paying interest to the consumers for their security
deposits will increase the cost of supply which will ultimately result in increase in tariff
rates.
Commission’s observation
The apprehension of the objector and the response of the Petitioner are noted. The
Commission support the view of the consumers.
3.2.25 Issue: Adjustment in case of partial bill payment
Bihar Industries Association has raised objections against the proposed adjustment
in case of partial bill payment as this infringes section 56 of the Electricity Act, 2003.
It was suggested that consumer should have the option to decide the order of
adjustment against various dues incase of partial payment.
Petitioner’s submission
2 “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 referred to in sub-section (1) and refund such security on the request of the person who gave such security.”
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Bihar Electricity Regulatory Commission Page 53
BSEB submitted that the adjustment in case of partial bill payment is proposed based
on the statutory requirement and occurrence of liability. In case of partial payment
made by the consumer the adjustment of the payment made by him will be done in
the following order: 1) Statutory taxes and duties, 2) Additional Security, 3) DPS on
arrears, 4) Principal arrears and 5) Current bill.
Commission’s observation
The objections and response are noted by the Commission. This matter has been
dealt in chapter -8 of the Tariff Order.
3.2.26 Issue: Delayed Payment Surcharge (DPS)
M/s Balmukund Concast Limited, Bihar Chamber of Commerce, Central Bihar
Chamber of Commerce, South Bihar Industries Association and Divisional Chamber
of Industry & Commerce opposed the Board’s proposal of DPS @ 1.5% per month or
part thereof if the bill in full is not paid before the due date specified in the bill for all
categories of HT and HTSS consumers. It was suggested that the DPS to be levied
for HT and HTSS consumer on daily basis @ 0.025% per day, on the “Principal
Outstanding” of the bill.
M/s Kalyanpur Cement and M/s Patwari Steel Private Limited suggested that the
Board should keep a separate account of DPS/ surcharge for separate different
heads like energy bill, electricity duty, arrears, DPS, surcharge etc. They suggested
that no DPS should be charged, after the line is permanently disconnected.
Petitioner’s submission
The Board submitted that as per the existing terms and conditions the consumer is
required to pay surcharge on the entire principal amount even if the consumer has
made partial payment. BSEB has proposed to replace the word “principal” with
“balance” so that the consumers who pay partial bill amount will be required to pay
DPS only on the remaining amount and not the entire amount. This would incentivize
consumers to pay their bills (even partial) and help BSEB in improving its cash
collection. This change is being proposed for both LT and HT consumer categories.
Further BSEB submitted that DPS is a penalty for not paying bills in time and it
should be higher than the state bank prime lending rate (the cost of fund) and also a
component for penalizing the consumer for default. Currently, state bank advance
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Bihar Electricity Regulatory Commission Page 54
rate is 14.75% compounded annually, so simple interest rate of 18% per annum of
DPS is justified.
Commission’s observation
The Commission is of the view that DPS @ 1.5% per month is reasonable.
3.2.27 Issue: Power Factor Surcharge and Voltage Surcharge
M/s Kalyanpur Cement and M/s Patwari Steels Private Limited have stated that with
reorganisation of the then existing Bihar into Bihar and Jharkhand, the Board has
been left with majority of low tension consumers who constitute 85% of the BSEB’s
present load. Thus the industries are finding it difficult to maintain a good power
factor. Representative of Vidyut Upbhokta Sangharsh Samiti has also suggested the
voltage surcharge at rate of 7.5% is not justifiable and should not be allowed.
Petitioner’s submission
The Board submitted that higher power factor helps in reducing losses and improve
system voltage. So it is the responsibility of all consumers to improve power factor.
The consumers of the state have taken steps to improve system and in this context
the proposed power factor rebate and surcharge is appropriate.
On voltage surcharge issues the Board stated that it would like to incentivize
consumers to receive supply at higher voltage levels. Receiving supply at higher
voltage level is beneficial to both consumers and BSEB. By taking supply at higher
voltage level, Consumers receive better quality and reliability of supply whereas
BSEB is able to control its losses and system overloading. Single and three phase
tariff is kept same for smooth processing.
Commission’s observation
The objection by objectors and response from the Board has been noted by the
Commission and the same has been considered during the examination of tariff
petition for FY 2012-13.
3.2.28 Issue: Compliance of Directives
Consumers have raised the issue of non-compliance of directives of the Commission
given in its Tariff Orders of different financial years.
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Bihar Electricity Regulatory Commission Page 55
Petitioner’s submission
BSEB submitted that it has made efforts to comply with the various directives issued
by the Commission from time to time. The Status of compliance of each directive has
been given in the tariff petition submitted by the BSEB.
Commission’s observation
The compliance report of directives submitted by the Petitioner has been reviewed in
Chapter -9 of this Tariff Order.
3.2.29 Issue: Voltage wise cost of supply
Central Bihar Chamber of Commerce, South Bihar Industries Association, Divisional
Chamber of Industry & Commerce, M/s Balmukund Concast Limited, M/s Kalyanpur
Cement Limited and M/s Patwari Steel Limited suggested that the Commission
should ensure that determination of tariff/ revision of tariff should not be allowed
without taking into account the voltage-wise cost of supply of each category of
consumers.
Petitioner’s submission
As per Section 62(3) of the Electricity Act 2003,
“The Appropriate Commission shall not, while determining the tariff under this Act,
show undue preference to any consumer of electricity but may differentiate according
to the consumer's load factor, power factor, voltage, total consumption of electricity
during any specified period or the time at which the supply is required or the
geographical position of any area, the nature of supply and the purpose for which the
supply is required”.
Also, clause 8.3.1 and 8.3.2 of the National tariff policy says
“In accordance with the National Electricity Policy, consumers below poverty line who
consume below a specified level, say 30 units per month, may receive a special
support through cross subsidy. Tariffs for such designated group of consumers will
be at least 50% of the average cost of supply. This provision will be re-examined
after five years”.
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Bihar Electricity Regulatory Commission Page 56
“For achieving the objective that the tariff progressively reflects the cost of supply of
electricity, the SERC would notify roadmap within six months with a target that latest
by the end of year 2010-2011 tariffs are within ± 20 % of the average cost of supply.
The road map would also have intermediate milestones, based on the approach of a
gradual reduction in cross subsidy”.
From the above it is clear that the Electricity Act 2003 as well as National tariff Policy
provide for usage of average cost of supply rather than voltage wise cost of supply
for determination of cross subsidy reduction road map. Accordingly, the BSEB would
like to inform the objector that such a requirement is neither under ambit of law nor
mandatory under any regulation/ policy.
It is necessary to note that no act/policy/regulation provides for voltage level wise
determination of cost of supply and hence BSEB is not adopting the methodology as
proposed by Objector. As per National Tariff Policy, tariff should be determined
based on the average cost of supply and same methodology is adopted by BSEB.
Commission’s observation
The objections and response from the Board are noted. Voltage‐wise cost of supply
data is not available with BSEB for want of metering in all feeders. Board is directed
to make all‐out efforts to collect this information and do energy accounting/ audits.
However, the Commission has determine the ARR and tariff on average cost of
supply.
3.2.30 Issue: Transformer capacity for HT Services
Central Bihar Chamber of Commerce, South Bihar Industries Association, Divisional
Chamber of Industry & Commerce, Bihar Chamber of Commerce, North Eastern
Bihar Chamber of Commerce and industries, M/s Kalyanpur Cement Limited and M/s
Patwari Steel Limited have suggested that the Board’s proposal for revising the
contract demand of HT consumer except RTS consumers to 2/3rd of the
Transformer Capacity should not be accepted. They also suggested that limiting the
Transformer Capacity to 150% of contract demand is also not correct and higher
capacity Transformer should be allowed.
Petitioner’s submission
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Bihar Electricity Regulatory Commission Page 57
This measure was initiated to reduce the incidence of stress on the system (intended
or unintended) and reduce possibility of theft. It is statutory obligation of the board to
bring down losses and this is in line with the commitment of BSEB to bring down T&D
losses.
Commission’s observation
The Commission is of the view the existing provision in the Tariff Order for FY 2011-
12 may be continued.
3.2.31 Issue: Removal of grace period
Bihar Chamber of Commerce, Central Bihar Chamber of Commerce, South Bihar
Industries Association and Divisional Chamber of Industry & Commerce suggested
that the Board’s request for removal of grace period should not be allowed as it is
against consumer interest.
Petitioner’s submission
BSEB submitted that it does not see any merit to continue with the grace period as
due date provide sufficient time for the consumer to pay his bill. The grace period is
not workable as it impacts revenue of the BSEB; consequently the same amount gets
reflected in higher rate for other consumer category.
Commission’s observation
The objection and response are noted. The Commission is in favour of grace period
of 10 days.
3.2.32 Issue: Quality of Power
Various consumers/ consumer Associations suggested that the capacity of installed
transformers is not adequate which results in interruptions, breakdown, shutdown,
tripping etc. and therefore BSEB should install transformers with adequate capacity
matching with their demand.
Petitioner’s submission
Bihar is a power deficit state and BSEB has obligation to serve the consumers. In
order to fulfil its obligation, BSEB is expanding its network across the length and
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Bihar Electricity Regulatory Commission Page 58
breadth of the state. To meet the growing demand of electricity of existing and new
consumers, BSEB is purchasing power through short and medium term.
Commission’s observation
The Commission directs the Board to submit a comprehensive plan to improve the
quality of supply and service to consumers and meet the Standards of Performance
as stipulated in the Regulation.
3.2.33 Issue: Maintaining HT Consumer Base
Bihar Chamber of Commerce, Central Bihar Chamber of Commerce, South Bihar
Industries Association and Divisional Chamber of Industry & Commerce suggested
that the Board should endeavour to increase the HT consumer base so as to reduce
the burden from the existing HT Industries and all other paying consumers and
increase its financial viability.
Petitioner’s submission
The Board submitted that the change in consumer mix is not within the control of
BSEB.
Commission’s observation
The Commission appreciates the concerns raised by the objectors. As a step
towards reducing the burden on the HT consumers, the Commission has adopted the
approach of gradually reducing the cross-subsidy in its Tariff Order FY 2012-13.
3.2.34 Issue: Frequent revision of tariff and FPPCA charge s
M/s Kalyanpur Cement Limited and M/s Patwari Steels Private Limited, by giving
reference to Clause - 213 of the BERC (Terms and conditions for determination of
Tariff) Regulations, 2007, have submitted that within a span of seven (7) months
there have been two tariff revisions and this is third exercise of tariff revision.
M/s Dadiji Steel Limited, M/s Kalyanpur Cement Limited, Bihar Steel Manufacture
Association, M/s Balmukund Concast Limited, Vidyut Upboghta Sangarsh Samiti,
Central Bihar Chamber of Commerce, South Bihar Industries Association, Divisional
Chamber of Industry & Commerce, Bihar Chamber of Commerce and Eastern Bihar
3 No tariff or any part thereof shall ordinarily be amended more frequently than once in any financial year.
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Bihar Electricity Regulatory Commission Page 59
Industries Association have raised objections on frequent levy of FPPCA charges by
the Board. These consumers have stated that such frequent and massive increase in
the tariff rates by the Board within last twelve months has completely ruined the
financial position of the industries in the state.
Petitioner’s submission
The Board submitted that the factual position in the case referred by the objector is
as follows:
– The Tariff Order issued on 6th Dec 2010 was for FY 2010-11; – The Tariff Order issued on 1st June 2011 was for FY2011-12; – The Tariff Order likely to be issued in March 2012 will be for FY2012-13. The
tariff revision is likely to effective from April 2012.
Section 63(4) of the Electricity Act 2003 states that no tariff or part of any tariff may
ordinarily be amended more frequently than once in any financial year, except in
respect of any changes expressly permitted under the terms of any fuel surcharge
formula as may be specified. Thus it is clear that there can be two revisions in a year
provided that the revisions lie in a different financial year. Thus the referred provision
of the EA 2003 is not likely to get violated in the situation referred by the Objector.
The Board further submitted that the FPPCA charges are levied on the consumers
after approval from the Commission only. It is within the powers to the Commission to
decide the modalities for recovery of difference between the power purchase rate
approved in the ARR and actual power purchase cost without adversely affecting the
cash flows of BSEB.
Commission’s observation
The Commission has noted the objections of the objectors and response of the
Petitioner. Additional cost/ surplus on account of Fuel and Power Purchase Cost
Adjustment (FPPCA) are passed on to the consumers for any increase or decrease
in fuel and power purchase cost. The central power generating stations revise their
cost as and when these changes in the costs need to be passed on to the consumer.
Therefore levy of FPPCA charge is in accordance with the provisions of Electricity
Act 2003 and BERC (Terms and Conditions of determination of tariff) Regulation,
2007.
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Bihar Electricity Regulatory Commission Page 60
3.2.35 Issue: Applicability of tariff category
Bhojpur Chamber of Commerce and Industry stated that the consumer with load
above 60 KW availing supply for commercial purpose should be considered under
NDS category rather than HT Category. M/s Bhola Ram Steels Private Limited has
suggested that in case a consumer has three different connections for Ferro Alloys
unit, Rolling Mill and Induction furnace in the adjoining campus with separation by
boundary walls, such consumers should have option for availing single connection for
these units under HTSS category.
Petitioner’s submission
The Board has stated that the power lies with the Commission to decide which type
of consumer will come under which category. The Board further stated that the issue
raised by M/s Bhola Ram steels Private Limited the Board stated that the matter
raised does not pertain to tariff petition for FY 2012-13, so the board has no comment
to offer. The objector may raise its concerns at the appropriate forum.
Commission’s observation
The objection and response are noted. The suggestions of consumer groups will be
considered while deciding the tariff for consumer categories.
3.2.36 Issue: Creation of new categories
M/s Dadiji Steel Limited has objected to the ARR and tariff proposal for FY 2012-13
of the Board in respect new tariff categories for HT consumers as well as new sub-
category for LT consumers (such as Temporary category, NDS-IV & Merger of LTIS-
I & II). Bihar Chamber of Commerce, Central Bihar Chamber of Commerce, South
Bihar Industries Association and Divisional Chamber of Industry & Commerce have
strongly objected to the Board’s proposal for creation of Construction Power with
25% extra charge. It was stated that construction Power should not be more that
10% extra and its billing demand should be same as other HT categories.
Bihar Chamber of Commerce, Central Bihar Chamber of Commerce, South Bihar
Industries Association and Divisional Chamber of Industry & Commerce were of the
view that further categorisation of NDS category for Hoardings is unnecessary and
should not be allowed. These Consumers have also opposed the Petitioner’s
proposal for applying higher tariff on merged LTIS category and compulsory demand
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Bihar Electricity Regulatory Commission Page 61
based tariff. Bihar Chamber of Commerce also stated that the HTSS tariff should be
available as an option for HT consumer and should not be made compulsory for any
class of consumers.
Representative from International Buddhist Council (IBC) of Buddha Gaya was of the
view that they should be considered under special tariff category.
Petitioner’s submission
New categories are formed based on the evolving load characteristics of consumers
and practical problems faced in the field. BSEB has proposed the merger of LTIS-I
and LTIS-II sub-categories. There would be uniform per HP fixed and minimum
energy charges. The merger would do away with the requirement of migration from
one sub-category to the other on change in connected load. This would facilitate the
consumers to increase or decrease the connected load with the requirement of the
business without change in sub-category. Further this would do away with the
disincentive to consumers/employees of BSEB to conceal the actual connected load
to prevent the shift from lower tariff category to the higher tariff category.
Regarding creation of new categories like construction power, temporary category,
NDS IV and merging of LTIS- I and LTIS-II, the Board has stated that, based on the
practical difficulties faced in the field, utility and capacities to pay, these categories
have been proposed by BSEB and It is for Commission to decide on proposal of the
BSEB.
On the issue of making HTSS category as option, the Board has stated that this
category has been designed keeping in view the specific need of the steel industry
and hence other categories cannot be allowed to opt for this category.
Commission’s observation
The Commission shall take prudent view on the matter of creation of new tariff
category while determination of ARR and Tariff Order for FY 2012-13. Further, the
Commission agrees with the view of the BSEB that the HTSS is a separate category
than the other HT category.
3.2.37 Issue: Release of Connection including tatkal conne ctions
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Bihar Electricity Regulatory Commission Page 62
Some LT consumer group pointed out that the Board takes a lot of time in releasing
new connections. Further, it was pointed out that the Board is charging the meter
cost and cost of service cable from the consumers while releasing new connections.
The Board should be more efficient in releasing new connections particularly the
Tatkal connections.
Petitioner’s submission
The Board has submitted that in the past it has received numerous requests from its
consumers for providing tatkal connections. In view of this demand of its consumers,
BSEB proposes this scheme under which all consumer categories other than High
Tension and Railway may avail benefit of this scheme. The general and
miscellaneous charges for the Tatkal connection will be 2 (Two) times the charges
approved under the head general and miscellaneous charges for normal new
connections. The connection under this scheme shall be released by BSEB in half
the time limit specified by the Commission in the Electricity Supply Code from the
date of completion of prescribed procedural formalities and payment of applicable
fees and charges. In case BSEB fails to release connection within this time limit,
BSEB will refund the additional amount to the consumer in the first energy bill. Higher
charges have been proposed to recover the higher cost likely to be incurred by BSEB
in providing connections in half the time proposed in Supply Code.
Commission’s observation
The Commission appreciates the concerns of the consumers. The Commission
appreciates that the Board needs to do a lot to improve quality of service to the
consumers particularly in respect of release of new connections. Directive has been
issued to the Board in this regard and the same is being reiterated in this Tariff
Order. The proposed introduction of the scheme of tatkal connections is accepted by
the Commission with some modifications.
3.2.38 Issue: Proposed sales for FY 2012-13 under Unmetere d Kutir Jyoti and
Agriculture category
M/s Dadiji steel Limited and Bihar Steel Manufacturer Association pointed out that
the Board in its tariff petition have stated that there are still 20 lakh un-metered
consumers. The Board has indicated the growth in the un-metered consumers and
has asked for approval of consumption norms of 30 units per connection per month
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 63
for Kutir Jyoti consumers both in respect for rural and urban areas. The Board has
projected to add 2746 tube-wells at a connected load of 20 kW each in the month of
December 2011 whereas there is no justification of the claim made by the BSEB.
Petitioner’s submission
The Board submitted that it has 3,02,914 Unmetered Kutir Jyoti consumers and the
Board will provide meter in a time-bound manner. New connections under Kutir Jyoti
category will be 21,82,603 and these will all be metered connections only. The Board
also stated that it is providing connections to 2764 tube wells under the NABARD
phase-II scheme of Minor Irrigation Department of Government of Bihar.
Commission’s observation
The Commission has considered the report submitted by the independent consultant
on assessment of consumption of Kutir Jyoti (Rural) and agriculture un-metered
consumers. The Commission has retained the consumption norms for these
categories at the level of FY 2011-12.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 64
4 True Up of FY 2010-11
4.1 Background
4.1.1 As per the Sub-Clause 22 (1) & (2) of the BERC (Terms and Conditions for
Determination of Tariff) Regulations 2007
“The Commission shall undertake a review along with next Tariff Order, of the
expenses and revenues approved by the Commission in the current year Tariff
Order. While doing so, the Commission shall consider variations between approvals
and revised estimates / pre-actuals of the sale of electricity, income and expenditure
for the relevant year and permit necessary adjustments / changes in case such
variations are for adequate and justifiable reasons. Such an exercise shall be called
‘Review”.
“After audited accounts of the year are made available, the Commission shall
undertake a similar exercise as in sub-clause (1) above based on the final actual
figures as per the audited accounts. This exercise based on the audited accounts
shall be called ‘Truing up’. The truing up exercise for any year shall not ordinarily be
considered after more than one year gap after ‘Review’.”
4.2 True-up of ARR for FY 2010-11
4.2.1 Bihar State Electricity Board submitted a petition on 13th October, 2011 vide letter no.
Com/ FPPCA-136/2011-1659 for regulatory approval of the review of ARR for FY
2010-11 based on their provisional annual accounts. The Commission vide its Order
dated 3rd November, 2011 directed BSEB to submit its petition for review of the
expenses and revenues for the FY 2010-11 along with tariff petition for FY 2012-13.
Commission also directed BSEB that, if the final audited accounts for the FY 2010-11
are made available to the Commission along with tariff petition for FY 2012-13 or
during the course of hearing of the tariff petition for the FY 2012-13, a final true up of
the expenses and revenues for the FY 2010-11 shall be considered by the
Commission.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 65
4.2.2 Subsequently, BSEB vide letter No. Com/ Tar-132/ 2011-392 dated 2nd March, 2011
submitted the audited annual accounts for FY 2010-11 along with the audit certificate
issued by CAG to the Commission and thereafter, BSEB has also submitted true up
petition for FY 2010-11 based on its audited annual accounts vide letter no. Com/
Tar-132/ 2011-451 dated 16th March, 2011.
4.2.3 The Commission had approved the ARR for FY 2010-11 vide its Tariff Order for FY
2010-11 (Case No. TP-3 of 2010) dated 6th December, 2010. Accordingly, now the
figures which were approved by the Commission in the Tariff Order for FY 2010-11
and audited annual account of FY 2010-11 would form the basis for approval of the
truing up for FY 2010-11. However, the Commission may re-visit some of the
approvals given as part of the Tariff Order process in case it feels the need to do so.
4.2.4 The truing up exercise for FY 2010-11 undertaken by the Commission is on the basis
of decisions & directives of the Commission in Tariff Order for FY 2010-11, audited
annual accounts for FY 2010-11 and BERC (Terms and conditions for determination
of Tariff) Regulations 2007. However, wherever deemed necessary, the Commission
has considered expenses based on prudency check and after considering the
efficiency parameters like T&D losses, generating stations plant operating
parameters, etc.
4.2.5 The component-wise description of licensee’s submission and Commission’s
analysis on the same is discussed in the subsequent sections.
4.3 Category wise energy sales
Petitioner’s submission
4.3.1 The Petitioner submitted the energy sales figures of 6139 MUs for FY 2010-11 on the
basis of audited annual accounts and as per Commission’s norms.
4.3.2 Further the Petitioner has submitted that as per the Tariff Order for the FY 2010-11,
the Commission considered agriculture consumption norm of 1485 units/ kW/annum
for FY 2010-11 i.e. considering 5.5 hours of average utilization per day for 270 days
in a year. Based on the norm of 1485 units/kW/annum, the consumption for FY 2010-
11 as approved by the Commission was 428 MU for the connected load of 2,88,100
kW.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 66
4.3.3 The BSEB has computed the consumption by the agriculture consumers based on
the norms and methodology used by Commission. In the true-up petition, the BSEB
has reported actual load of 2,61,684 kW during FY 2010-11, though the annual
accounts of FY 2010-11 shows the agriculture load of 4,17,191 kW. The annual
account shows only the registered load of agriculture consumer and not the effective
load. Accordingly for the connected load of 2,61,684 kW, as reported by BSEB, and
based on the consumption norm of 1485 Units/kW/Annum as approved by the
Commission, the agriculture sales for FY 2010-11 works out to 389 MUs.
4.3.4 The Petitioner has requested the Commission to approve the total sales as per
BERC norms which is 6139 MUs.
Commission’s analysis
4.3.5 The Commission has scrutinized the commercial information with regard to the
category wise sales submitted by the Petitioner for FY 2010-11. The quantum of
energy sales for FY 2010-11 as approved by Commission in the Tariff Order for FY
2010-11 was 7225 MUs whereas the sales figures as per the Board’s audited
accounts was 6139 MUs. Accordingly, as per the consumption norms for Kutir Jyoti
and agricultural consumers as approved in the tariff Order of FY 2010-11, the
Commission approves the category-wise sales in FY 2010-11 at 6139 MUs as
proposed by the Board. The same would be used for approving the power
procurement cost.
4.3.6 The following table summarises the category-wise sales for FY 2010-11.
Table 6: Summary of Category-wise Sales for FY 2010 -11
Sl. Category Name Approved in T.O. for FY
2010-11
Audited Annual
Accounts
Now Approved in
True up
1 Kutir Jyoti (Rural and Urban) 231 2133
2133
2 Domestic (DS-I & DS-II) 2664
3 Non-Domestic (NDS-I, NDS-II & NDS-III) 629 490 490
4 Public Lighting 28 33 33
5 Irrigation and Agriculture 428 389 389
6 Public Water Works 200 60 60
7 Industrial LT 236 226 226
8 Industrial HT 1660 1,501 1,501
9 Railway Traction 570 458 458
10 Sale to Nepal 300 555 555
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 67
Sl. Category Name Approved in T.O. for FY
2010-11
Audited Annual
Accounts
Now Approved in
True up
Sub-Total 6946 5845 5845
11 Sales to other state under UI 279 293 293
Total Sales 7225 6139 6139
4.4 Transmission and Distribution Losses
Petitioner’s submission
4.4.1 The Table below summarises the overall T&D loss levels as submitted by the
Petitioner for FY 2010-11:
Table 7: Proposed T&D losses by BSEB for FY 2010-11
Particular FY 2010-11 (Approved)
FY 2010-11 (Actual Accounts)
FY 2010-11 (Actual - BERC Norm)
T&D Losses (%) 32.00 % 43.59 % 44.80 %
4.4.2 In FY 2010-11, the T&D losses as per audited annual accounts were 43.59%. The
BSEB has submitted that T&D losses work out to 44.80% if calculated as per the
agriculture consumption norm approved by the Commission.
4.4.3 The BSEB submitted that it has undertaken massive rural electrification work under
the RGGVY scheme. Consequently, there has been a tremendous increase in the
network of BSEB in the high loss rural areas and an addition of large number of Kutir
Jyoti consumers. The BSEB has electrified 633096 number of BPL households and
5297 number of villages during FY 2010-11. This substantial addition in the network
has not only led to increase in the technical losses in the system, but has also
rendered the system porous and prone to theft of electricity. Given the vast
expansion of the rural areas it is not always possible for BSEB to control theft. Due to
these reasons, BSEB has not been able to achieve the loss targets given by the
Commission.
4.4.4 The BSEB has requested the Commission to consider the T&D losses of 43.59% at
the time of calculating power purchase requirement. Further, it has also requested
the Commission to compensate the difference between actual power purchase cost
and power purchase cost calculated based on the agriculture consumption norm and
T&D loss trajectory from the Resource Gap Funding provided by the State
Government.
Commission’s analysis
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 68
4.4.5 The Commission has approved target of T&D losses at 32% for the FY 2010-11. The
trajectory had already been reviewed earlier by the Commission. The Commission is
of the view that T&D losses is a controllable parameter and it is the responsibility of
distribution licensee to take appropriate measures to bring down the T&D losses. The
Commission cannot allow the burden of higher T&D loses, due to non-achievement
of T&D loss reduction trajectory by BSEB as approved by the Commission, to be
passed on to the consumers. Accordingly, the Commission approves the
Transmission & Distribution losses of 32% for true up for FY 2010-11. The same
shall be considered at the time of computation of the power purchase cost. This is
also in-line with the loss level approved by the Commission in the Tariff Order for FY
2010-11.
4.4.6 The table below summarises the T&D loss levels target set by Commission, T&D loss
as per audited annual accounts of Board and the approved T&D loss in truing up for
FY 2010-11:
Table 8: Approved T&D Loss for FY 2010-11
Particulars As approved by BERC in T.O. for FY 2010-11
As per Annual Accounts of FY 2010-11
Now Approved in True up of FY 2010-11
T&D Losses (%) 32% 43.59% 32%
4.5 Own Generation
Petitioner’s submission
4.5.1 The BSEB has submitted that it owns and operates one thermal generating plant i.e.
Barauni Thermal Power Station (BTPS) located at Barauni. The overall installed
capacity of Unit IV, V, VI and VII of the BTPS in FY 2010-11 was 320 MW. However,
it was submitted in the petition that during FY 2010-11, out of the remaining two
functional units i.e. Unit VI and VII, Unit VI was functioning at a de-rated capacity,
while Unit VII was under shutdown and Renovation & Modernization work was going
on for its revival.
4.5.2 Accordingly, the actual performance of the BTPS, Barauni in FY 2010-11 as per the
annual accounts was not at desired levels. The BSEB has requested the
Commission to approve the same.
Table 9: Summary of BTPS Performance proposed by Pe titioner for FY 2010-11
Particular Units FY 2010-11 (Approved)
FY 2010-11 (Actual)
Capacity (Unit VI & VII) MW 220 220
Capacity in Use MW 105 105
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 69
Particular Units FY 2010-11 (Approved)
FY 2010-11 (Actual)
Plant Load Factor % 39.14% 23.97%
Auxiliary Consumption % 10% 17.95%
Gross Generation MUs 360 220.44
Auxiliary Consumption MUs 36 39.56
Net Generation MUs 324 180.88
Commission’s analysis
4.5.3 The Commission found that the performance of unit VI of BTPS in FY 2010-11 on the
key performance parameter such as Auxiliary Consumption has been high as
compared to past three financial years. As can be seen, the actual performance of
BTPS Unit VI has not improved as expected by the Commission and has in fact
deteriorated further. Considering these facts, the Commission is not agreeable to
approving the performance parameters of BTPS Unit VI at actuals. Accordingly, the
Commission approves auxiliary consumption @ 14.40% of the gross generation as
approved in the true-up order of FY 2009-10.
4.5.4 Accordingly, the Commission now approves Gross generation of 220.44 MU and net
generation of 188.70 MUs for FY 2010-11.
4.5.5 Summary of the approved generation performance is as shown in the table below:
Table 10: Summary of approved Generation performanc e for FY 2010-11
Particulars Units FY 2010-11 (Approved)
FY 2010-11 (Actuals)
Now Approved in True up
Capacity MW 220 220 220
Capacity in use MW 105 105 105
Gross Generation MUs 360 220.44 220.44
Plant Load Factor % 39.14% 23.97% 23.97%
Auxiliary Consumption % 10% 17.95% 14.40%
Auxiliary Consumption MUs 36 39.57 31.74
Net Generation MUs 324 180.87 188.70
4.6 Power Purchase
Petitioner’s submission
4.6.1 The BSEB had firm allocations of power from thermal power plants of NTPC, Hydel
Power Plants of NHPC, and the hydel plants of Chukka & Tala through PTC and
hydel plants of BSHPC and thermal power plant of Kanti BUNL. In addition to these,
BSEB also purchases power from co-generation sources of sugar mills.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 70
4.6.2 The Petitioner has submitted gross power purchase quantum of 10977.81 MUs from
all sources in its true-up petition for FY 2010-11. The BSEB has requested the
Commission to approve 10977.81 MU of power purchase quantum for the FY 2010-
11.
Commission’s Analysis
4.6.3 The Commission recognises the sources of power as outlined by BSEB based on the
Audited Annual Accounts for FY 2010-11 and the costs associated with purchase of
power from these sources. However, the quantum of power purchase and the cost
associated with the same would be approved after taking into cognisance the
approved energy sales for the year and the T&D loss trajectory.
4.6.4 The Commission intends to use the same methodology for approval of the Power
purchase quantum and cost associated with the same based on the information
available in the Audited Annual Accounts for FY 2010-11 and approves the quantum
of Power Purchase on the same principles as done earlier during the true up for FY
2006-07 to FY 2009-10.
4.6.5 The summary of the approved power purchase quantum from various sources for the
FY 2010-11 is given in the table below:
Table 11: Source-wise Power Purchase Quantum for FY 2010-11 (MUs)
Sl. Power Plant Name Approved by
BERC in T.O. FY 2010-11
Audited Annual Accounts of FY
2010-11
Now approved in True up of FY
2010-11 NTPC
1 Farakka 2760.00 3146.43 3146.43
2 Kahalgaon 2245.00 2531.83 2531.83
3 Talchar 2600.00 2669.74 2669.74
4 KBUNL 500.00 273.23 273.23
Sub Total (NTPC) 8105.00 8621.23 8621.23
NHPC
5 Rangit 145.00 118.79 118.79
6 Teesta 550.00 549.31 549.31
Sub Total (NHPC) 695.00 668.10 668.10
PTC
7 Chukka 560.00 543.23 543.23
8 Tala 1020.00 909.36 909.36
Sub Total (PTC) 1580.00 1452.59 1452.59
Others
9 NEA – Muzaffarpur 50.00 - -
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 71
Sl. Power Plant Name Approved by
BERC in T.O. FY 2010-11
Audited Annual Accounts of FY
2010-11
Now approved in True up of FY
2010-11 10 NEA – Motihari 34.91 34.91
11 NEA – Purnea 9.09 9.09
12 BSHPC 50.00 27.37 27.37
13 New Swadeshi Sugar Mill 55.00 28.35 28.35
14 UI - 136.17 136.17
Sub Total Others 155.00 235.89 235.89
Grand Total 10535.00 10977.81 10977.81
4.6.6 The Commission now considers the total quantum of power purchase, i.e. 10977.81
MUs, for the purpose of working out the energy balance and computation of the
power purchase expenses as part of the true up exercise.
4.7 Energy Balance
Petitioner’s submission
4.7.1 The energy requirement for FY 2010-11 submitted by the Petitioner based on the
proposed sales and T&D losses is tabulated hereunder:
Table 12: Proposed Energy Requirement & Energy bala nce for FY 2010-11
Particular Unit FY 2010-11 (Approved)
FY 2010-11 (Actual
Accounts)
FY 2010-11 (Actual-BERC
norm) Energy Sales within State MU 6,646 5,291 5,291
Energy outside State (Nepal) MU 300 555 555
Sale in bilateral trade/ UI MU 279 293 293
Total Sales MU 7,225 6,139 6,139
T&D Losses MU 3,269 4,744 2,751
T&D Losses % 32% 43.59% 32.00%
Energy Requirement MU 10,494 10,883 8,890
Energy Availability Own Generation MU 324 181 181
Total Purchase from long term sources MU 10,535 10,978 10,978
Transmission loss in regional losses % 3.70% 2.63% 2.63%
Transmission loss in regional losses MU 365 276 276
Net Power Availability MU 10,494 10,883 10,883
Additional purchase MU 1,993
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 72
4.7.2 The BSEB in its submission has recognised 1993 MUs of additional Power purchase
on account of higher T&D losses and requested the Commission to dis-allow the
same for the FY 2010-11.
Commission’s analysis
4.7.3 The energy requirement of the Petitioner is approved based on the approved values
of sales and T&D losses by the Commission. The T&D losses have not been
considered on sales in bilateral trade/ UI.
4.7.4 The energy balance for FY 2010-11 shall be prepared based on the approved sales
to consumers during the year, the approved level of T&D losses and the power
purchased/generated to meet the demand from the consumers.
4.7.5 Accordingly, the approved total power purchase requirement (net) based on the
approved sales to consumers and approved T&D losses is 8890.09 MUs. As against
this, the net availability as per approved Generation parameters is computed as
10882.85 MUs. Thus, the additional power purchase from long term sources over
and above the requirement comes to 2052.15 { =10977.81 (Actual power purchase
from long term sources as per annual accounts) - 8925.66(Actual power purchase
from long term sources as approved by Commision) } MUs. Accordingly, the
Commission disallows power purchase quantum of 2052.15 MUs for FY 2010-11.
The power purchase cost corresponding to the same would be adjusted in the total
power purchase cost approved for the year.
Table 13: Approved Energy Requirement for FY 2010-1 1
Particular Unit FY 2010-11
(Actual Accounts)
FY 2010-11 (Actual-BERC
norm)
FY 2010-11 (Now
Approved in True up)
Energy Sales within State MU 5,290.76 5,290.76 5,290.76
Energy outside State (Nepal) MU 555.00 555.00 555.00
Sale in bilateral trade/ UI MU 293.38 293.38 293.38
Total Sales MU 6,139.14 6,139.14 6,139.14
T&D Losses MU 4,743.93 2,750.95 2,750.95
T&D Losses % 43.59% 32.00% 32.00%
Energy Requirement MU 10,883.07 8,890.09 8,890.09
Energy Availability
Own Generation MU 180.87 180.87 188.70
Total Purchase from long term sources MU 10,977.81 10,977.81 8,925.66
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 73
Particular Unit FY 2010-11
(Actual Accounts)
FY 2010-11 (Actual-BERC
norm)
FY 2010-11 (Now
Approved in True up)
Transmission loss in regional system % 2.51% 2.51% 2.51%
Transmission loss in regional system MU 275.83 275.83 224.27
Net Power Availability MU 10,882.85 10,882.85 8,890.09
Additional purchase disallowed MU 1,992.77 2,052.15
4.7.6 The total purchases from long term sources has been worked out considering the
impact of average regional transmission losses (2.51% = 275.83 MU ÷ 10977.81 MU)
applicable on the total actual power purchase by BSEB in FY 2010-11. The reason
for applying the average regional transmission losses is that the power purchase
quantum by BSEB also includes sources of power on which the regional transmission
losses of 3.7% are not applicable e.g. UI power, Nepal (NEA), BSHPC, etc.
Accordingly, the gross power purchase required to be done in FY 2010-11 was
8925.66 MU with a regional transmission loss of 224.02 MU. {8925.66 MU =
(8890.09 – 188.70) ÷ (1-2.51%)}
4.7.7 Accordingly, the Commission has disallowed power purchase quantum equivalent to
2052.15 MUs for the FY 2010-11 as part of true up process based on the principle
that excess power purchase on account of higher T&D losses i.e. over and above the
approved losses shall not be permitted.
4.8 Own Generation Cost
Petitioner’s submission
4.8.1 BSEB submitted that net generation from the BTPS for FY 2010-11 was 180.88 MUs
as against the approved level of 324 MUs. The Petitioner submitted that the Gross
Generation from BTPS for FY 2010-11 was 220.44 MU. The BSEB has further
submitted that unit VI of BTPS was under R&M for most of the year and could
achieve PLF of only 23.97% and hence was not able to achieve operational
parameters set by the Commission; whereas unit VII of BTPS remained under shut
down for the entire period during FY 2010-11.
4.8.2 The variable cost calculation submitted by the Petitioner for BTPS is tabulated
below:-
Table 14: Proposed Plant parameters & Fuel cost det erminants for BTPS
Particulars Unit FY 2010-11 (Actual)
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 74
Particulars Unit FY 2010-11 (Actual)
Gross Generation MUs 220.44
Auxiliary Consumption MUs 39.56
Net Generation MUs 180.88
Capacity MW 110
De-rated Capacity MW 105
Plant Load Factor % 23.97%
Auxiliary Consumption % 17.95%
Station Heat Rate kcal/kWh 4,103
Sp. Oil Consumption ml/kWh 31.48
Gross Calorific Value of Coal kcal/kg 3,858
Calorific Value of Oil kcal/l 9,950
Transit losses % 0.00%
Actual Oil Consumption Kl 6939
Actual Coal Consumption MT 2,16,560
Specific Coal Consumption kg/kWh 0.98
Price of Coal Rs./MT 1,823
Price of Oil Rs/kl 31,388
Coal Cost Rs. Cr. 39.48
Oil Cost Rs. Cr. 21.78
Fuel Cost Rs. Cr. 61.26
Other Fuel Related costs Rs. Cr. 5.06
Total Fuel Costs Rs. Cr. 66.32
4.8.3 The Petitioner accordingly requested the Commission to consider gross generation of
220.44 MUs and generation costs of Rs 66.32 Cr. for FY 2010-11.
Commission’s analysis
4.8.4 In the Tariff Order for FY 2010-11, the Commission has stated that
“The maximum norm provided for old coal based generating stations of DVC by
CERC is 3.0ml/kWh. The Barauni Unit 6 is already renovated and so, is expected to
perform and meet the norms. For the year 2010-11, specific consumption of oil at
10.0ml/kWh is considered by the Commission against 20.0ml/kWh proposed by the
BSEB. Efforts shall be taken by BSEB to bring down the specific oil consumption to
the level of CERC norm.”
“Similarly the norm of gross station heat rate considered by CERC for the old thermal
generating stations of DVC is 3100Kcal/kWh, where as BSEB has shown the station
heat rate as 4650Kcal/kWh and projected the specific coal consumption as
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 75
0.95Kg/kWh. Since the Barauni Unit 6, which is renovated, is expected to improve
the performance, specific coal consumption of 0.9Kg/kWh is considered by the
Commission. Efforts shall be taken by BSEB to improve the SHR to the level of
CERC norm.”
4.8.5 The Commission found that the performance of unit VI of BTPS in FY 2010-11 on the
key performance parameters such as Auxiliary Consumption and Specific Oil
consumption has been poor as compared to past two-three financial years. As can
be seen, the actual performance of BTPS Unit VI has not improved as expected by
the Commission and has in fact deteriorated further. Considering these facts, the
Commission is not agreeable to approving the performance parameters of BTPS Unit
VI at actuals. Accordingly, the Commission approves auxiliary consumption @
14.40% of the gross generation and Specific Oil consumption @ 18.45 ml/kWh as
approved in the trueing-up order of FY 2009-10.
4.8.6 Further, the Commission approves the Station heat rate and calorific value of coal as
per the audited annual accounts of BSEB for FY 2010-11 while giving due weightage
to the vintage of the plant. The Commission also directs BSEB to take serious
cognisance of the same and initiate steps towards improvement in the operational
parameter of the generating station.
4.8.7 The Commission approves the fuel cost of Rs 58.66 Cr. for FY 2010-11 based on the
cost determined by the Commission as per the Tariff Order for FY 2010-11 and the
actual generation submitted by the Petitioner. The Operational parameters and
details of cost component allowed by the Commission are stated below:-
Table 15: Approved plant parameters & fuel cost det erminants for FY 2010-11
Particulars Unit FY 2010-11 (Actuals) Now Approved in True up of FY 2010-11
Gross Generation MUs 220.44 220.44
Auxiliary Consumption MUs 39.57 31.74
Net Generation MUs 180.87 188.70
Capacity MW 110 110
De-rated Capacity MW 105 105
Availability Factor % 56.32% 56.32%
Plant Load Factor % 23.97% 23.97%
Auxiliary Consumption % 17.95% 14.40%
Station Heat Rate kcal/kWh 4,103.31 4,103.31
Sp. Oil Consumption ml/kWh 31.48 18.45
Gross Calorific Value of Coal kcal/kg 3,858 3,858
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 76
Particulars Unit FY 2010-11 (Actuals) Now Approved in True up of FY 2010-11
Calorific Value of Oil kcal/l 9,950 9,950
Overall Heat G Cal 904,534 904,534
Heat from Oil G Cal 69,043 40,468
Heat from Coal G Cal 835,488 864,066
Transit losses % 0.00% 0.00%
Actual Oil Consumption kl 6,939 4,067.12
Actual Coal Consumption MT 216,560 223,967
Specific Coal Consumption kg/kWh 0.98 1.02
Price of Coal Rs./MT 1,823 1,823
Price of Oil Rs/kl 31,388 31,388
Coal Cost Rs Cr. 39.48 40.83
Oil Cost Rs Cr. 21.78 12.77
Fuel Cost Rs Cr. 61.26 53.60
Other Fuel Related costs Rs Cr. 5.06 5.06
Total Fuel Costs Rs Cr. 66.32 58.66
4.8.8 The Commission now approves total fuel cost of Rs. 58.66 Cr. for FY 2010-11 as part
of the truing up process. This cost is excluding the cost of water and other
miscellaneous expenses which are factored under the Repairs and Maintenance
expenses.
4.9 Power Purchase Cost
Petitioner’s submission
4.9.1 The Petitioner has submitted gross power purchase cost of Rs 3237 Cr. from all
sources including intrastate and UI including transmission charges for FY 2010-11 for
true up.
4.9.2 The Petitioner has claimed total transmission charges of Rs. 192.96 Cr. for total
power purchased during FY 2010-11.
4.9.3 The Petitioner submitted the source-wise break up of total cost and unit cost, the
details of which are given below:
Table 16: Proposed Power Purchase cost for FY 2010- 11
Sl. Power Plant Name Power purchase cost (Rs. Cr.)
Per Unit Cost ( Rs./Unit)
FY 2010-11 (Approved)
FY 2010-11 (Actual)
FY 2010-11 (Approved)
FY 2010-11 (Actual)
NTPC
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 77
Sl. Power Plant Name Power purchase cost (Rs. Cr.)
Per Unit Cost ( Rs./Unit)
FY 2010-11 (Approved)
FY 2010-11 (Actual)
FY 2010-11 (Approved)
FY 2010-11 (Actual)
1 Farakka 767 1085.09 2.78 3.45
2 Talchar 491 644.39 1.89 2.41
3 Kahalgaon 566 744.24 2.52 2.94
4 KBUNL 181 99.73 3.62 3.65
Sub Total (NTPC) 2,005 2573.44 2.47 2.99
NHPC
5 Rangit 25 23.48 1.72 1.98
6 Teesta 94 94.19 1.71 1.71
Sub Total (NHPC) 119 117.67 1.71 1.76
PTC
7 Chukka 89 86.37 1.59 1.59
8 Tala 188 167.32 1.84 1.84
Sub Total (PTC) 277 253.70 1.75 1.75
Others
9 Nepal 21 19.39 4.15 4.41
10 BSHPC 12 6.67 2.49 2.44
11 New Swadeshi Sugar Mill 23 12.09 4.25 4.27
12 UI 75.84 - 5.57
Sub Total Others 57 114.00 3.65 4.83
Transmission charges
13 PGCIL Charges 178 192.96
Grand Total 2,636 3251.78 2.50 2.96
Commission’s analysis
4.9.4 Accordingly, the source-wise power purchase approved by the Commission for true
up of FY 2010-11 is depicted in the table given below:
Table 17: Trued-up Power Purchase Cost for FY 2010- 11 (Rs. Cr.)
Sl. Power Plant Name Now approved in true-up of FY 2010-11
Amount (Rs. Cr.) Average rate (Rs./ kWh)
NTPC
1 Farakka 1085.09 3.45
2 Talchar 644.39 2.41
3 Kahalgaon 744.24 2.94
4 KBUNL 99.73 3.65
Sub Total (NTPC) 2573.44 2.99
NHPC
5 Rangit 23.48 1.98
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 78
Sl. Power Plant Name Now approved in true-up of FY 2010-11
Amount (Rs. Cr.) Average rate (Rs./ kWh)
6 Teesta 94.19 1.71
Sub Total (NHPC) 117.67 1.76
PTC
7 Chukka 86.37 1.59
8 Tala 167.32 1.84
Sub Total (PTC) 253.70 1.75
Others
9 Nepal 19.39 4.41
10 BSHPC 6.67 2.44
11 New Swadeshi Sugar Mill 12.09 4.27
12 UI 75.84 5.57
Sub Total Others 114.00 4.83
Transmission charges
13 PGCIL Charges 192.96
Grand Total 3251.78 2.96
4.9.5 The Commission accordingly approves power purchase cost of Rs.
3251.78 Cr for the FY 2010-11 as part of the truing up exercise.
4.10 Disincentive for non-achievement of T&D loss r eduction Targets
4.10.1 The difference in the actual power purchase and the power purchase requirement
approved by the Commission is disallowed at the average power purchase rate and
is treated as ‘Disincentive for non-achievement of T&D loss targets’.
4.10.2 As per the trajectory, the T&D loss reduction target for FY 2010-11 was set at 32%
which the Petitioner was not able to achieve. Accordingly, the Commission has
computed the disincentive for non-achievement of T&D loss reduction targets at Rs.
623.54 Cr for FY 2010-11 as shown below:
Table 18: Disincentive: Non-achievement of T&D loss reduction target for FY 2010-11
Particular Units FY 2010-11
Net Power Purchase Dis-allowed MUs 2,052.15
Gross Power Purchase Dis-allowed (Grossed up at avg. loss @ 2.51%) MUs 2,105.05
Average Power purchase cost Rs./ kWh 2.96
Cost of Power Purchase Dis-allowed Rs. Cr. 623.54
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 79
4.10.3 The Commission accordingly approves Rs. 623.54 Cr as dis-allowanc e for non-
achievement of T&D loss target for the FY 2010-11 a s part of the truing up
exercise.
4.11 Operation & Maintenance Expenses
Employee Cost
Petitioner’s submission
4.11.1 Employee expenses typically comprise salaries, dearness allowance, bonus, terminal
benefits in the form of pension & gratuity, leave encashment and staff welfare
expenses.
4.11.2 The Petitioner submitted that the BSEB prepares its annual accounts on accrual
basis, the employees cost consists of expenditures that accrue for the year and
therefore, the amount of terminal benefits/ retiral dues payable to the retired
employees is not treated as expenditure for the year. The amount actually paid is
adjusted against the provision made in the books of account for pension, gratuity and
leave encashment.
4.11.3 The Petitioner has submitted the net Employee Expenses of Rs. 593.90 Cr. for FY
2010-11 including salaries, dearness and other allowances, contribution towards
terminal benefits, and unfunded terminal liabilities etc. The Petitioner has claimed Rs.
126.88 Cr. towards staff related liabilities & provisions as indicated in the schedule 28
of the Annual Accounts and Rs. 42.11 Cr. for interest on GSS, GPF and other staff
deposits as indicated in the schedule 12 of the annual accounts on account of
unfunded terminal liabilities in FY 2010-11. The employee cost capitalised during FY
2010-11 was Rs. 18.58 Cr. Hence the total employee expense claimed by the
Petitioner for FY 2010-11 was Rs. 744.30 Cr. for FY 2010-11.
4.11.4 Commission’s Analysis
4.11.5 The Commission in the Tariff Order for FY 2011-12 had stated as under:
“4.7.12. So far the contribution of the employees towards GPF and GSS is
concerned; this is not a part of employee cost. This amount is deducted from the
salary of the employees and should be deposited in a separate fund to be governed
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 80
by a Trust in which both BSEB and its employees are represented. Any investment
out of this fund has to be with the approval of the Trust.”
4.11.6 Accordingly, it is apparent that BSEB has utilised the amounts available in the fund
created towards GPF and GSS contribution towards meeting its day to day expenses
i.e. for the purpose of funding its working capital requirements. Accordingly,
permitting these expenses to be passed on to the consumers shall mean that the
consumers have to bear the burden for the past financial mismanagement by the
Board. The Commission is of the view that such liabilities on account of past issues
should be funded by BSEB through its own means and should not be passed on to
the consumers at this point of time. The regulations anyway provide for interest on
normative working capital to be passed on to the consumers thus meeting the
working capital requirements of the licensee for the year.
4.11.7 In view of the above, the Commission approves the net employee cost for FY 2010-
11, as depicted in the table given below:
Table 19: Employee Cost approved for FY 2010-11 (Rs Cr.)
Sl. Particulars As per Annual Accounts
Now approved in True-up for FY
2010-11 1 Employee cost 593.90 593.90
2 Add: Payment made for unfunded liabilities 168.99 0.00
3 Less: Employee cost Capitalized 18.58 18.58
4 Net Employee cost 744.30 575.32
4.11.8 The Commission approves Rs. 575.32 Cr. as the employee cost for FY 2010-11.
Repair and Maintenance (R&M) Expenses
Petitioner’s submission
4.11.9 The Petitioner, in the true-up petition for FY 2010-11 has submitted the R&M cost at
Rs 62.51 Cr. for FY 2010-11.
Commission’s Analysis
4.11.10 The Commission in its Tariff Order for FY 2008-09 dated 26th August, 2008 directed
BSEB to include water charges & miscellaneous charges under the head R&M
expenses and exclude the same from the head fuel cost.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 81
4.11.11 Based on the above, the Commission approves R&M expenses of Rs. 62.51 Cr. for
the FY 2010-11 which includes Rs. 5.11 Cr. on account of water charges and other
miscellaneous charges which were shifted from fuel costs to R&M expenses and
base R&M expenses of Rs. 57.40 Cr. These values are the same as per the audited
annual accounts for the FY 2010-11.
4.11.12 The summary of the approved R&M expenses for FY 2010-11 is as given in the
table below:
Table 20: Summary of approved R&M cost (Rs. Cr.)
Sl. Particulars As per Annual
Accounts
Now Approved in True-up for FY 2010-11
1 Plant & Machinery 34.56 34.56
2 Building 2.20 2.20
3 Hydraulic works 2.93 2.93
4 Civil Work 0.18 0.18
5 Line cable & network 17.10 17.10
6 Vehicles 0.09 0.09
7 Furniture & fixtures 0.20 0.20
8 Office equipment 0.14 0.14
9 Operating expenses - -
10 Total expenses 57.40 57.40
11 Add cost of materials procured from Board's Hdqrs.for R&M - -
12 Net Expenses 57.40 57.40
13 Cost of water & Other Misc. Charges 5.11 5.11
14 Total R&M Expenses 62.51 62.51
4.11.13 The Commission based on the audited annual accounts approves the R&M
expenses of Rs.62.51 Cr. for the FY 2010-11.
Administrative & General (A&G) Expenses
Petitioner’s submission
4.11.14 The Petitioner has proposed the Administrative & General (A&G) expenses of for FY
2010-11 as Rs. 40.29 Cr. and also submitted that the A&G expenses capitalised
during FY 2010-11 was Rs. 1.46 Cr. as per the accounts of BSEB.
Commission’s Analysis
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 82
4.11.15 The Commission approves the A&G expenses submitted by BSEB for FY 2010-11.
The summary of the A&G expenses approved is outlined in the table below:
Table 21: Summary of approved A&G cost (Rs. Cr.)
Sl. Particulars As per Annual Accounts
Now approved in True-up for FY 2010-11
1 Rent, rates & taxes 0.50 0.50
2 Insurance 0.00 0.00
3 Telephone, postage &Telegrams 0.99 0.99
4 Legal Charges 0.98 0.98
5 Audit Fees 3.25 3.25
6 Consultancy fees 0.00 0.00
7 Technical fees 0.01 0.01
8 Other professional charges 0.00 0.00
9 Conveyance & travel expenses 4.99 4.99
10 Others (sum of a. to l. as given below) 29.39 29.39
a. Fees and Subscription 1.70 1.70
b. Books and Periodicals 0.05 0.05
c. Printing and Stationary 0.72 0.72
d. Advertisement 1.47 1.47
e. Water Charges 0.02 0.02
f. Electricity Charges 8.93 8.93
g. Entertainment Charges 0.15 0.15
h. Computer Billing 3.84 3.84
i. Home Guard/ Security Guard 2.65 2.65
j. Franchisee Commission 2.11 2.11
k. Franchisee Incentive 1.00 1.00
l. Miscellaneous Expenses 6.74 6.74
11 Freight 0.17 0.17
12 Total A & G expenses 40.29 40.29
13 Less: A&G expenses capitalized 1.46 1.46
14 Net A & G expenses 38.83 38.83
4.11.16 The Commission approves the actual net A&G expenses of Rs. 38.83 Cr. as
reflecting in the audited annual accounts for FY 20 10-11.
Operation & Maintenance (O&M) Costs
4.11.17 Based on the above approvals, the summary of the total O&M costs approved by
the Commission for FY 2010-11 as part of the truing up process is outlined in the
table below:
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 83
Table 22: Summary of approved O&M expenses for FY 2 010-11 (Rs. Cr.)
Sl. Particulars FY 2010-11 (Approved)
FY 2010-11 (Actual)
Now approved in True-up for
FY 2010-11 1 Employee cost 660.00 744.30 575.32
2 Repair and Maintenance (R&M) Expenses 95.00 62.51 62.51
3 Administrative & General (A&G) Expenses 38.76 38.83 38.83
4 Total O&M Cost 793.76 845.64 676.66
4.12 Capital Expenditure
4.12.1 As mentioned by the Commission during the truing up for the period from FY 2006-07
to FY 2008-09, the Capital Expenditure undertaken by BSEB is a very critical aspect
of its business as it supports the growth of business and helps the Board in
sustaining its operational performance.
4.12.2 As per para 51 of Chapter 5 of BERC (Grant of Licence for Distribution of electricity)
Regulations, 2007, BSEB is required seek prior approval of the Commission for
making investment in the licenced business. In the absence of the prior approval by
the Commission, the Commission may disallow corresponding depreciation and
interest cost. As can be seen, the availability of capital expenditure related
information is a basic requirement of the distribution licence granted to BSEB.
4.12.3 BSEB in its true-up petition for FY 2010-11, has not submitted any information
regarding the actual capital expenditure undertaken by it during the year and the
capitalisation of assets on account of projects / schemes getting commissioned
during the year.
4.12.4 The information relating to the capital expenditure provided by BSEB in the formats
submitted along with the petition also does not provide the necessary information in a
clear and unambiguous manner for the Commission to consider it for necessary
decision making.
4.12.5 The Commission vide its letter no. BERC-Tariff-24/11-88 dated 27th January, 2012
had sought information regarding the capital expenditure that has been undertaken
during the FY 2010-11 including details like the total value of the scheme, the capital
expenditure done during the FY 2010-11, the corresponding capitalization against
these schemes and the closing work in progress in respect of schemes which have
not been capitalised. Further, the BSEB was also asked to provide the sanction
letters of these loans and the financing terms. However, BSEB has not been able to
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 84
provide the information as sought by the Commission, However BSEB could only
inform the Commission about the details of capitalisation during FY 2010-11 in the
following format:
Table 23: Details of capitalisation during FY 2010- 11 (Rs. Lakh)
Activity Generation Transmission Distribution Total
Land and Land rights - 0.93 4.37 5.30
Building - - 0.32 0.32
Other civil works - 0.49 0.52 1.01
Plants and Machinery 16.80 6.93 288.43 312.15
Lines and cable network - 43.61 628.02 671.63
Vehicles - - - -
Furnitures and Fixtures - - 0.01 0.01
Office equipments - 0.00 0.04 0.04
Spare units/ Service units - - 0.81 0.81
Total 16.80 51.95 922.52 991.27
4.12.6 Accordingly, based on the limited information available with the Commission from the
audited annual accounts, the Commission has estimated the actual capital
expenditure incurred by BSEB in FY 2010-11. The same is outlined in the table
below:
Table 24: Estimation of CWIP (Rs. Cr.)
Particulars Now approved in True-up for FY 2010-11
Opening balance - CWIP 881.20
Add: New investment during the year 1,392.11
Total 2,273.32
Less: Net Investment capitalization during the year 991.27
Closing balance 1,282.04
4.12.7 As can be seen from the above, the net investment capitalised during the FY 2010-
11 is Rs. 991.27 Cr. The same is computed based on the other information which is
available in the audited annual accounts e.g. Opening and Closing CWIP and the
assets capitalised during the year.
4.12.8 The same can also be derived by tracking the movement in the quantum of Gross
Fixed Assets and CWIP over the year. The same can also be corroborated from the
Statement 7: Sources and Uses of Funds available in the audited annual accounts
for FY 2010-11. The details are as illustrated below:
Table 25: Estimated Capital expenditure (Rs. Cr.) – FY 2010-11
Particulars Now approved in True-up for FY 2010-11
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 85
Particulars Now approved in True-up for FY 2010-11
Opening balance – GFA (a) 2,864.80
Opening balance – CWIP (b) 881.20
Less: Closing GFA (c) 3,856.07
Less: Closing CWIP (d) 1,282.04
Net change in GFA/ CWIP (e = c + d – a – b) 1,392.11
4.12.9 The Commission directs BSEB to ensure that information like Capital expenditure
and the related capitalisation of assets, etc. should be available with it as it is a basic
information required by the Commission to approve expenditure related to funding
costs incurred by BSEB. In the absence of availability of such information, the
Commission will be constrained to adopt normative capital expenditure related costs
and may also not allow such expenditure at all, as such expenditure cannot be
passed on to the consumers without proper prudence check.
4.12.10 Based on the information available in the audited accounts the capital assets to the
tune of Rs. 991.27 Cr. have been capitalised in the FY 2010-11. The Commission
now approves the same for computation of the interest expenses.
4.13 Gross Fixed Assets
4.13.1 The Commission vide letter No. BERC-Tariff-24/11-88 dated 27th January, 2012
enquired from the Petitioner regarding, the asset added during FY 2010-11 under
head ‘Plant and Machinery’ and ‘Lines and Cable Network’ and its source of funds
(Loans/ Grant etc.). The Board vide letter No.Com/ Tar-132/2011-375, dated
01.03.2012 could only submit the detailed break-up of assets added during FY
2010-11 under that the head ‘Plant and Machinery’ and ‘Lines and Cable Network’
as shown in the table below, however BSEB has not provided information regarding
the source of fund through which the assets have been created:
Table 26: Asset added during FY 2010-11 in plant & machinery & Line & Cable N/W
Amount (Rs.) Remarks
Plant and Machinery 3121530757 The Amount capitalised under APDRP scheme has been funded by loan from PFC and State Govt. The Amount capitalized under RGGVY scheme has been funded by loan from REC under RGGVY scheme in which Rs. 449,04,15,066/- as grant and Rs. 49,89,35,451/- as loan.
Line and Cable network 6745633030
APDRP 3352552737
RGGVY 4989350507
State Plan/ Internal Resources 1525260543
Total 1,433,471,103
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 86
4.13.2 The Commission has approved the Gross Fixed Asset as per the audited annual
accounts of BSEB. The position of the Gross fixed assets during FY 2010-11 is as
shown in the table below:
Table 27: Gross Fixed Assets (Rs. Cr.) – FY 2010-11
Particulars Now approved in True-up for FY 2010-11
Opening GFA (As on 1st April 2009) 2,864.80
Additions to GFA during the year 1,005.42
Deductions to GFA during the year 14.14
Re-classification during the year 0.00
Closing GFA (As on 31st March 2010) 3,856.07
4.14 Depreciation
Petitioner’s submission
4.14.1 The Petitioner in the true-up petition for FY 2010-11 submitted the depreciation
expenses of Rs 89.00 Cr. for FY 2010-11 based on the audited annual accounts for
BSEB.
Commission’s Analysis
4.14.2 The Commission has approved the depreciation charges based on the schedule 20
of the audited annual accounts of FY 2010-11. However, the depreciation on the
assets created out of consumer contribution, grant has been deducted from the gross
depreciation to arrive at the net depreciation charge for BSEB. The computation of
the depreciation on the assets created out of consumer contribution, grant is based
on the proportion of average of opening and closing value of ‘Grant and contribution’
and ‘GFA’ for FY 2010-11.
Table 28: Approved Depreciation (Rs. Cr.) for FY 20 10-11
Sl. Particulars FY 2010-11 (Approved)
As per BSEB petition FY
2010-11
Now approved in True-up for FY 2010-11
1 Depreciation 75.72 89.00 90.45
2 Less: Depreciation on the assets created out of Grant, consumer contribution - - 29.92
3 Net Depreciation 75.72 89.00 60.53
4.14.3 Accordingly, the Commission approves depreciation expenses of Rs. 60.53 Cr.
for FY 2010-11 during the truing up process for FY 2010-11.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 87
4.15 Interest and Finance Charges
Petitioner’s submission
4.15.1 BSEB in its true-up petition has submitted that the Interest and Financial Charges
incurred by it during the year for various purposes like capital expenditure, normal
working capital, meeting revenue deficit etc. The submission by BSEB is outlined in
the table below.
Table 29: Interest & Financial Charges as per the p etition for FY 2010-11 (Rs. Cr.)
Institution Nature of Loan Opening Loan Addition Repayment Closing
Loan Interest
State Govt
(a) Plan Loan Capital Expenditure 1,460.96 805.94 - 2,266.90 254.86
(b) Non plan loan Revenue Deficit 3,558.44 44.06 - 3,602.50 487.88
(c) Bonds issued to CPSUs Revenue Deficit 2,143.33 - - 2,143.33 176.43
REC Capital Expenditure 93.50 - 22.49 71.01 12.82
RGGVY Capital Expenditure 5.23 105.06 8.04 102.26 36.03
LIC Capital Expenditure - - - - -
L.D. bank under ARDC Capital Expenditure - - - - -
IDBI Capital Expenditure 0.06 - - 0.06 -
CEA Capital Expenditure
- - - - -
PFC Capital Expenditure
245.82 58.37 35.63 268.57 27.66
Public Bond Capital Expenditure - - - - -
Centrally Sponsored Schemes (Loans are not allocated to BSEB by State Government)
Capital Expenditure
- - - - -
Working Capital Loan Working Capital 887.97 722.35 - 1,610.32 97.39
Consumer Security Deposit Working Capital - - - - 9.98
Consumer Rebate Working Capital - - - - 30.77
Interest to supplier/contractor Working Capital - - - - 0.30
Other Charges Working Capital - - - - 0.01
Total 8,395.32 1,735.79 66.16 10,064.95 1,132.94
Loans used for Capital Expenditure 1,805.58 969.37 66.16 2,708.80 331.37
4.15.2 BSEB has further submitted that prior to the Tariff Regulations, 2007, tariff were not
sufficient enough to meet its expenditures and hence BSEB was making loss and
also not able to make repayment of loans. Further, BSEB has identified the loans
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 88
used for the capital expenditure and working capital and only asked the interest &
financial charges for the loans used for the capital expenditure work.
4.15.3 As per the provisions of Tariff Regulations, 2007, BSEB has requested the
Commission to approve net interest & financial charges of Rs. 331.37 Cr., taking into
consideration Rs. 25 Cr. as the actual interest capitalised during FY 2010-11, for the
loans raised for capital expenditure.
4.15.4 Further, in response to the Commission letter vide letter no. No. BERC-Tariff-24/11-
88 dated 27th January, 2012, the Board vide letter no. Com/ Tar-132/2011-375,
dated 01.03.2012 explained the reason of mismatch between the details of loan as
given under Table 12 of the petition and the schedules of the annual accounts for FY
2010-11 of the Board as under:
“34 The REC Normal/RMNP loans up to the year 2001-02 is being repaid as per schedule of payment fixed by REC under one time settlement scheme. However, the accounting entries of OTS Scheme were not incorporated in the accounts of the Board earlier. Now the same has been accounted for in schedule -32 of the Annual Accounts of the Board. Consequently though nil amounts have been received under REC Normal Scheme but a sum of Rs 83, 45, 02,695/- has been shown as receipt during the year only for rectification of REC Account. Similarly, a sum of Rs 19, 28, 80,068/- only has been repaid during the F Y 2010-11 but a sum of Rs1,05,94,18,777/- has been shown in repayment during the year only for rectification of REC Account.”
Commission’s Analysis
4.15.5 On scrutiny of the petition and the additional information furnished by the Board, the
Commission observed that the loan amounts also included the payments due on
capital liabilities which are created on account of defaults in the repayments done by
BSEB in the past. As mentioned previously, the Commission does not agree to this
treatment as the burden on account of defaults in making repayments should not be
passed on to the consumers.
4.15.6 Further, the Commission has also taken into cognizance the fact that the interest
booked by the Board under the head “Interest and Finance Charges” may also
include the penal or additional interest incurred by the Board for defaulting on making
timely repayments. Accordingly, the Commission will keep the above fact in mind
while approving the Interest and finance charges. The Commission notes with
concern that the Petitioner is diverting its long-term fund for the purpose of meeting
its deficit caused due to its own inefficiencies. The Commission directs the Petitioner
to abstain from diversion of funds meant for creating long-term assets.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 89
4.15.7 In absence of the adequate data/ information with BSEB regarding the details of the
capital expenditure incurred during the year, its funding, capitalisation of assets, etc.,
the Commission has adopted the same methodology as applied while truing up of
costs for FY 2006-07 to FY 2009-10. The Commission has used the normative
closing balance of loan (Rs. 465.53 Cr.) as arrived in true up of FY 2009-10 as the
opening outstanding loans as on 1st April 2010 for computation of Interest and
finance charges for FY 2010-11.
4.15.8 The Commission has also outlined the methodology adopted for estimating the
additional borrowings during the FY 2010-11 for funding the assets getting
capitalised during the year after considering the amount available in the form of
consumer contributions and grant / subsidy towards cost of capital assets during the
year as well as balance amount (- Rs. 5.74 Cr.) of contribution, Grants and subsidies
towards cost of capital assets to be capitalised in subsequent years. The amount of
Rs. – Rs. 5.74 Cr. was arrived at while truing up of FY 2009-10 wherein the
Commission had stated that
“5.17.15 As can be seen from the above, the consumer contribution, grants /
subsidies towards cost of capital assets received during the year is much more than
the assets capitalised during the year. Based on the same, the assets capitalised
during the year are assumed to be entirely being funded through the consumer
contribution, grants / subsidies towards cost of capital assets received during the
year and hence, there is no requirement of loan funding against assets capitalised
during the year. After accounting for the same, the remaining quantum of Rs. 5.73
Cr. against consumer contribution, grants / subsidies towards cost of capital assets
received during the year is assumed to be used for funding assets being capitalised
in the subsequent years.”
4.15.9 In the absence of the adequate data with BSEB the Commission has considered the
repayment during the year as per the Central Electricity Regulatory Commission
(Terms and Conditions of Tariff) Regulations, 2009 reproduced as below:
“The repayment for the year of the tariff period 20 09-14 shall be deemed to be
equal to the depreciation allowed for that year”
4.15.10 Based on the above methodology, the opening loan as on 1st April 2010 considered
for computing interest cost for FY 2010-11 has been taken equal to closing
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 90
normative loan for FY 2009-10 as Rs. 465.53 Cr. as per the true-up order issued by
the Commission on 27th January 2012 for FY 2009-10.
4.15.11 The BERC Tariff Regulations provide for recovery of interest and finance charges
on loans which have been utilised to create assets and are eligible for recovery only
after the assets have been put to use. The normative outstanding loan as on 1st
April 2010 is considered to be used for creation of assets which have been put to
use and hence the interest against this loan is considered for recovery from
consumers. In addition to this, there will be certain additional loans which will be
eligible for recovery of interest on account of capitalisation of assets achieved during
the FY 2010-11.
4.15.12 The assets capitalised during the year comprises of a combination of assets created
out of the CWIP at the beginning of the year and part of the assets capitalised
during the year are created out of investments done during the year itself. This
break-up is not available in the audited annual accounts. While, it is desirable to
understand the bifurcation of these assets capitalised i.e. assets created out of
capitalisation of CWIP at the beginning of the year and those created through
capitalisation of investments done during the year, the same may not be possible
looking at the availability of information with the Commission and from the data
made available by BSEB.
4.15.13 Accordingly, the Commission has considered the assets capitalised during the year
as being first funded through the consumer contributions and grants/subsidy
towards capital assets received during FY 2010-11 and the remaining portion of the
assets getting capitalised during FY 2010-11 is assumed to be funded through
additional loans received during FY 2010-11. At the same time, any amount of
contribution and grants / subsidy towards capital assets available after this
adjustment will be considered as having funded assets which would be capitalised
in the subsequent years. While, the Commission understands that this method has
its own limitations, however, the Commission has no other option but to adopt this
method till the time BSEB is able to improve the availability of information to enable
the Commission to approve the interest expenses based on actual information.
4.15.14 Based on the above, the methodology for determining the additional loans drawn
during the year and eligible for recovery of interest charges based on the above
discussion is exhibited in the table below:
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 91
Table 30: Estimation of loan against assets getting capitalized during FY 2010-11 (Rs. Cr)
Particulars Amount
Total Assets Capitalised During the year (A) 991.27
Contribution, Grants and subsidies towards Cost of Capital Assets during the FY 2010-11 (B) 919.05
Balance contribution, Grants and subsidies towards Cost of Capital Assets (As per True up Order for FY 2009-10) (C)
5.74
Estimated Funding through Loans (A – B – C) 66.49
4.15.15 As can be seen from the above, the consumer contribution, grants / subsidies
towards cost of capital assets received during FY 2010-11 and the balance of the
consumer contribution, grants / subsidies towards cost of capital assets taken from
true up order for FY 2009-10 is considered as the assets capitalised during the year
funded through grant and the balance capitalisation of Rs 66.49 Cr. is treated as
funded through loan.
4.15.16 In line with the methodology adopted in the truing up for the FY 2006-07 to FY 2009-
10, the Commission has approved an effective interest rate of 12.70% for the FY
2010-11. The details are as given in the table given below.
Table 31: Computation of effective Rate of Interest for FY 2010-11 (Rs. Cr.)
Loan type State Government Loans (Plan) REC PFC Total
Opening Balance 1,460.96 98.74 245.82 1,805.52
Additions 805.94 193.74 58.37 1,058.06
Repayment 0.00 27.33 35.63 62.95
Closing Balance 2,266.90 265.16 268.57 2,800.62
Interest 215.93 48.85 27.66 292.43
Average Loan during the year 1,863.93 181.95 257.19 2,303.07
Average Rate of Interest 11.58% 26.85% 10.76% 12.70%
4.15.17 As per the Central Electricity Regulatory Commission (Terms and Conditions of
Tariff) Regulations, 2009 as mentioned in clause 3.14.10, the repayment has been
considered to be equal to the depreciation allowed for that year.
4.15.18 On the basis of the methodology mentioned above, the Commission approves the
interest and finance charges for FY 2010-11, as given in the table below:
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 92
Table 32: Approved Interest and finance charges for FY 2010-11 (Rs. Cr.)
Particular Amount
Opening Balance of loan (As per True up Order for FY 2009-10) 465.53
Additions to Loan 66.49
Repayment 60.53
Closing Balance 471.49
Average Loan during the year 468.51
Interest Rate 12.7%
Interest & Finance Charges 59.49
4.15.19 Accordingly, the Commission approves the interest a nd finance charges of
Rs.59.49 Cr. for the FY 2010-11.
4.16 Interest on Working Capital
Petitioner’s submission
4.16.1 The BSEB has submitted that the BERC (Terms and conditions for determination of
Tariff) Regulations, 2007 provide for recovery of the interest on working capital from
the consumers on a normative basis. The principles for this normative computation
have been prescribed in the regulations and are different for generation function and
transmission & distribution function.
4.16.2 BSEB has submitted that it has calculated the interest on Working Capital based on
the normative principles outlined by the Commission in its Tariff Regulations, 2007
and sought for approval of the same from the Commission.
4.16.3 The Petitioner has submitted the details of interest on working capital requirement for
FY 2010-11 in the formats submitted along with its petition. As per the submission,
the Petitioner has considered the following components for calculating its interest on
working capital requirements:
Table 33: Proposed Interest on working capital for FY 2010-11 (Rs. Cr.)
Sl. Particulars FY 2010-11 (Actual)
1 Two (2) months of Fuel cost (Primary and Secondary) 11.06
2 One month O&M expenses of BSEB 70.47
3 Receivables (two (2) months of fixed and variable charges of BSEB) 654.27
4 Maintenance spares (@ 1% of GFA escalated at 6% per annum) 48.60
5 Total Working Capital Requirement 784.39
6 Interest Rate (SBI PLR as on 1st April, 2010) 11.75%
7 Interest on Working Capital 92.17
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 93
Commission’s Analysis
4.16.4 BSEB has included the resource gap grant received from the State Government in
the form of payment of part of power purchase cost to NTPC as receivable for the
purpose of calculation of working capital. State Government has paid part of power
purchase cost to NTPC directly and treated it as resource gap grant to BSEB.
Commission observes that BSEB does not have to arrange working capital for
payment of this amount to NTPC and therefore, it should not be included in two
months receivable for the purpose of calculation of working capital.
4.16.5 The State Govt. makes the payment of power purchase cost directly to NTPC on
receipt of the bill every month. Only the balance amount of the power purchase
received from NTPC is paid by BSEB from its working capital and receivables. BSEB
does not have to arrange working capital for payment to NTPC the amount which is
paid directly by the State Govt. to NTPC. Therefore, the payment made by the State
Govt. directly to NTPC should not be included in two months’ receivables of BSEB as
part of the working capital requirement. Similarly, in the true up exercise for the
period of FY 2006-07 to FY 2009-10 also, the resource gap grant received from the
Government has not been considered as receivable for the purpose of computation
of interest on normative working capital.
4.16.6 As per the BERC (Terms and conditions for determination of Tariff) Regulations,
2007, Maintenance spare is calculated as “Maintenance spares at 1% of the
historical cost escalated at 6 % per annum from the date of commercial operation”.
4.16.7 The Commission has used the same approach as used while truing-up of ARR for
the period of FY 2006-07 to FY 2009-10. The Commission has used 1% of closing
balance of GFA of FY 2005-06 as the base and escalated it at 6% for four (4) years
to calculate the spares for FY 2010-11. To this base figure, 1% of the addition in GFA
each year escalated at 6% per annum is added to calculate the total Maintenance
spares.
4.16.8 Accordingly, based on the principles specified in the BERC (Terms and conditions for
determination of Tariff) Regulations, 2007, the information available in the audited
annual accounts and the observation of the Commission, the Commission approves
the Interest on Working Capital of Rs.52.25 Cr. as against that of Rs. 92.17 Cr.
submitted by BSEB for FY 2010-11 as shown in the table below.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 94
Table 34: Summary of approved Interest on working c apital (Rs. Cr.)
Sl. Particulars Now approved in
True-up for FY 2010-11
1 Two (2) months of Fuel cost (Primary and Secondary) 9.78
2 One month O&M expenses of BSEB 56.39
3 Receivables (two (2) months of fixed and variable charges of BSEB) 336.58
4 Maintenance spares (@ 1% of GFA escalated at 6% per annum) 38.92
5 Total Working Capital Requirement 441.65
6 Interest Rate (SBI PLR as on 1st April, 2010) 11.75%
7 Interest on Working Capital 51.89
4.16.9 Therefore, the Commission approves Rs. 51.89 Cr. as the interest on working
capital for FY 2010-11.
4.17 Return on Equity (ROE)
Petitioner’s submission
4.17.1 Bihar State Electricity Board is an integrated electricity utility constituted under
Clause 5, Chapter – III of The Electricity (Supply) Act, 1948. The Board is mainly
funded through loans and grants from the Government of Bihar, loans and grants
under specialized funding schemes of the Government of India and loans from
commercial lending organizations.
4.17.2 BSEB has requested the Commission to approve a reasonable return at the rate of
14% on the capital grant provided by the State Government. It has submitted that as
BSEB is a board and not a company so the equity contribution can come only by way
of Grant and not equity. In view of the same, the Commission is requested to provide
reasonable return on the capital provided by the State Government. Accordingly,
BSEB has sought approval for Return on Equity of Rs 213.32 Cr. for the purpose of
true-up of FY 2010-11.
Commission’s Analysis
4.17.3 The Commission had not approved any Return in Equity for BSEB in the Tariff Order
issued for FY 2006-07 or FY 2008-09 or during the review process undertaken for the
FY 2006-07 or FY 2008-09. BSEB also had not sought any return on equity in its
tariff petition for FY 2010-11.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 95
4.17.4 The Commission is of the view that “Return is admissible only on equity actually
deployed for the creation of assets. Since, BSEB has not been corporatized; it does
not have any equity. The Commission has considered entire assets base funded
through loan/ grant and accordingly interest has been allowed.”
4.17.5 Accordingly, the Commission continues with the stand taken in the past Tariff Orders
and no Return on Equity is permitted for BSEB in truing up of FY 2010-11.
4.18 Taxes
4.18.1 BSEB submitted that there are no expenses under this head for FY 2010-11 hence
no expense is being claimed under Taxes.
4.19 Other Debits & Extraordinary Items
Petitioner’s submission
4.19.1 The Petitioner submitted that the expenses incurred under head of other debits &
extraordinary items by BSEB for FY 2010-11 are Rs. 0.17 Cr. hence requested the
Commission to allow the same.
Commission’s Analysis
4.19.2 The Commission approves Rs. 0.17 Cr. under the head ‘Other Debits &
Extraordinary Items’ based on the audited annual accounts of FY 2010-11.
4.20 Prior Period Credits / (Charges)
Petitioner’s submission
4.20.1 BSEB in its true-up petition has stated that the Commission has started issuing Tariff
Order from FY 2006-07 and hence any expense/income incurred/accrued and not
accounted in respective year but considered in future year as prior period credits/
(charges) should be adjusted while calculating ARR. As the Commission’s first Tariff
Order was issued for FY 2006-07 and hence BSEB has only considered
expense/income incurred/accrued after 1st April, 2006.
4.20.2 Based on the above discussed principal, BSEB has calculated prior period credits/
(charges) for FY 2010-11. Prior Period Credits/ (Charges) for FY 2010-11 are Rs.
312.20 Cr., out of this, Rs. 263.49 Cr. of income comprises of FPPCA charges for
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 96
Oct’2009 to Dec’2009, additional supply of power to rural areas to meet drought
situation in 2009-10 and power purchase from sugar mills.
Commission’s Analysis
4.20.3 The Commission had sought clarification from BSEB regarding the nature of these
charges to enable the Commission to take appropriate decision. In response, BSEB
has submitted the bifurcation of Rs. 263.49 Cr. is as below:
• Rs. 90 Cr. – FPPCA support from State Government;
• Rs. 171.90 Cr. – support from agriculture department for additional supply of power to rural areas to meet drought situation in FY 2009-10
• Rs. 1.59 Cr. – support from State Government for power purchase from sugar mills
4.20.4 The detailed break-up of the prior-period items has been submitted by the Board vide
letter No. Com/Tar-132/2011-375 dated 01.03.2012 as mentioned below:
Table 35: Prior Period Credits / (Charges) for the FY 2010-11 (Rs. Cr.)
Particulars Amount
Employee cost (0.32)
Misc. receipt 39.30
A&G expenses (8.75)
Depreciation (4.17)
Interest payable on REC loan 43.74
Fixed deposit 68.72
Power Purchase (45.18)
Subsidy and Grant 263.49
Interest on consumer security deposit (6.08)
Fuel related (21.02)
Sundry debtors (2.09)
Interest on consumer security deposit (0.78)
O&M and Fuel supplier (0.09)
Interest in State Govt Loan (0.91)
Interest payable on REC loan (18.36)
Interest on consumer security deposit (12.08)
Insurance charges (1.41)
Assets not in use (3.61)
Total 290.41
4.20.5 Accordingly, the Commission approves the Prior Peri od Credits of Rs. 290.41
Cr. for the FY 2010-11.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 97
4.21 Non-Tariff Income
Petitioner’s submission
4.21.1 The Petitioner in the true-up petition of FY 2010-11 submitted the non-tariff income
as Rs. 44.73 Cr. for FY 2010-11 as below:
Table 36: Proposed Non-Tariff Income (Rs Cr.) for F Y 2010-11
Particulars FY 2010-11 (Approved)
FY 2010-11 (Actual)
Non-Tariff Income 172.08 44.73
4.21.2 The Petitioner has also submitted that it has proposed all other values as per audited
annual accounts of the Board except for delayed payment surcharge from
consumers, for which the Petitioner has requested that the DPS may not be
considered while considering Non-Tariff Income for the purpose of ARR
determination.
4.21.3 The Petitioner has submitted that for the purpose of ARR determination revenue from
tariff is considered on accrual basis i.e. amount billed by BSEB. However the Board
is not able to collect the entire amount and the revenue collected (cash basis) is
lower than the amount billed. In order to fund this gap (receivables so created),
BSEB has to borrow higher amount (than allowed by the Commission) for its
increased working capital requirement. The delayed payment surcharges are payable
by the consumers on such unpaid amounts. In the Annual Accounts the revenue (on
the income side) is on billed basis (accrual) but the borrowings for increased working
capital also get reflected as increased interest cost under the Interest and Finance
Charges account. Thus in a way Delayed Payment surcharges are sources of fund
for funding this increased working capital. Further, the Board has submitted that the
Commission considers revenue on accrual basis and the working capital requirement
though computed on normative basis does not take into consideration the increased
receivable (beyond the norms of 2 month) amount that has to funded by BSEB. If
BSEB were to collect the entire amount that it has billed there would be no income
from surcharge (no receivable would exists) however the Commission considers
income from DPS. BSEB on this account is doubly penalized. The income is
considered on accrual basis and simultaneously DPS is also considered in the ARR.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 98
Commission’s analysis
4.21.4 The Commission has adopted the approach on Non-tariff income in line with the
recent judgement of Hon’ble Appellate Tribunal for Electricity (APTEL) dt. 12.07.2011
in Case no 142 & 147 of 2009.
4.21.5 The relevant extracts of the Judgment are reproduced below:
“The normative working capital compensates the distribution company in delay for
the 2 months credit period which is given to the consumers. The late payment
surcharge is only if the delay is more than the normative credit period. For the period
of delay beyond normative period, the distribution company has to be compensated
with the cost of such additional financing. It is not the case of the Appellant that the
late payment surcharge should not be treated as a non-tariff income. The Appellant is
only praying that the financing cost is involved due to late payment and as such the
Appellant is entitled to the compensation to incur such additional financing cost.
Therefore, the financing cost of outstanding dues, i.e. the entire principal amount,
should be allowed and it should not be limited to late payment surcharge amount
alone. Further, the interest rate which is fixed as 9% is not the prevalent market
Lending Rate due to increase in Prime Lending Rate since 2004-05. Therefore, the
State Commission is directed to rectify its computation of the financing cost relating
to the late payment surcharge for the FY 2007-08 at the prevalent market lending
rate during that period keeping in view the prevailing Prime Lending Rate”.
4.21.6 As per audited annual accounts of the Board for FY 2010-11, the Non-Tariff Income
of BSEB is Rs. 161.63 Cr. out of which, Delayed Payment Surcharge from
Consumers is Rs. 24.31 Cr. As the Petitioner charge DPS @ 18% per annum (1.5%
per month), the principal amount on which DPS has been charged will be 135.08 Cr.
4.21.7 As prevailing SBI PLR as on April 1, 2009 was 12.25%, the Commission has allowed
the financing cost for DPS @ 11.75%. The financing cost approved by the
Commission is shown below:
Table 37: Funding of DPS (Rs. Cr.)
Particular FY 2010-11
DPS as per audited annual accounts of FY 2010-11 (@ 1.5% per month) (A) 24.31
Principal amount on which DPS was charged (B = A / 18%) 135.08
Interest Rate for funding of Principal of DPS 11.75%
Interest on funding of Principal amount of DPS 15.87
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 99
4.21.8 The Commission has sought additional information vide its letter No. BERC-Tariff-
24/11-272 dated 23.03.2012 seeking information on actual DPS collected by the
Board. However, the Board has replied vide letter no. Com/ tariff-161/11-488 dated
23.03.2012 saying that the same is not available as of now and shall be made
available only once the IT based billing system is implemented under the ongoing R-
APRDRP Scheme.
4.21.9 The Commission is not satisfied with the justification given by the Board for not
maintaining records for actual revenue receipts against DPS. The Commission
directs the Board to submit the same as per actuals in its subsequent filings/ true-up
petitions, in the absence of which the Commission shall consider 100% DPS as non-
tariff income for the purpose of calculation of the ARR.
4.21.10 Hence, the Commission has computed the amount of Non-Tariff Income as
summarised below:
Table 38: Trued-up Non-Tariff Income approved (Rs. Cr.) Particular FY 2010-11
Non-Tariff Income as per the Audited Annual account s
Interest on Staff Loan & Advance 0.03
Income from Investment (F.D) 92.59
Interest on Loan & advance to licensees -
D.P.S from Consumer 24.31
Interest on advance to Supplier/Contractor -
Interest from Bank (Other than F.D.) 1.82
Income from Trading 1.05
Income from Staff Welfare activities -
Miscellaneous Receipt 3.45
Rebate and discount Received 3.06
Incentive for timely payment of power purchase bills 1.16
Incentive for timely payment of installment against Loan to PFC 0.44
Meter Rent/Service Line Rental 18.88
Miscellaneous Recoveries 14.83
Total Non-Tariff Income 161.63
Less: Financing cost of Principal amount of D.P.S. 15.87
Net Non-Tariff Income 145.76
4.21.11 Therefore, the Commission approves Rs. 145.76 Cr. a s Non-Tariff Income for
FY 2010-11, against the Petitioner’s claim of Rs. 4 4.73 Cr.
Table 39: Non-Tariff Income (Rs. Cr.)
Particular Petitioner’s Submission Now approved in True-up for FY 2010-11
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 100
Particular Petitioner’s Submission Now approved in True-up for FY 2010-11
Non-Tariff Income 44.73 145.76
4.22 Revenue from the sale of Power
Petitioner’s submission
4.22.1 BSEB has requested the Commission to approve the total Revenue from the sale of
Power of Rs 2375.97 Cr. as per the audited annual accounts of BSEB.
4.22.2 The Commission while approving the revenue from sale of power has also
considered the revenue on account of “FPPCA” charges as approved by the
Commission vide FPPCA order for the period of Oct'08 to Mar'09 issued in the month
of Mar'10 and FPPCA order for the period of Apr'09 to Sep'09 issued in the month of
May'10 for an aggregate of Rs. 384.77 Cr..
4.22.3 Further, the Commission vide letter no. No. BERC-Tariff-24/11-88 dated 27th
January, 2012, enquired from the Board about treatment of Rs. 384.77 Cr.. The
Board in response has explained the reason for not considering billing Rs. 384.77 Cr.
on account of FPPCA vide letter no. Com/ Tar-132/2011-375, dated 01.03.2012 as
under:
“As against the order of the Hon’ble Commission for recovery of FPPCA charges for
the period from Oct’2008 to Sept’2009, amounting to Rs. 385 Cr.. The Board
received Rs. 90 Cr. as Grant from State Government during FY2010-11 against the
aforesaid sum. The Board was supposed to bill Rs. (384-90) Cr. = Rs.295 Cr. .
Accordingly, the field offices were asked to bill FPPCA in 5(five) equal monthly
instalments vide letter dated 11.12.2010. As such, one instalment amounting to Rs.
59 Cr. approximately was envisaged to be billed every month. Consequently, the
Board had to bill Rs.235 Cr.. However, due to higher T&D loss in comparison to
trajectory set by the Hon’ble Commission, the Board could not bill approx. Rs. 17 Cr.
to the consumers on account of disapproved billed units accruing beyond normative
T&D loss allowed in the formula for FPPCA prescribed by the Hon’ble Commission in
the Tariff Order. As such, the billable units to the consumers came to Rs. (235-17)
Cr.= Rs.218 Cr. only during FY2010-2011. The field offices were instructed to bill the
FPPCA charges in the mid of December 2010 (i.e. 11.12.2010). So the field offices
and billing agencies took one month in implementing the changes in billing software
to incorporate FPPCA related changes. Accordingly, FPPCA was charged effectively
only in two months’ energy bills. Accordingly, BSEB could bill only Rs 115.78 Cr. to
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 101
the consumers during FY 2010-11. As such, BSEB could bill Rs.115.79 Cr. only
during FY2010-11 against billable amount of Rs. 115.79 Cr.. Billing done during FY
2010-11 under FPPCA is provided in Annexure B. However, the left over amount
have been billed during the following FY2011-12. The chronology of the FPPCA
charge actually became leviable from consumers leading to lower billing are as
follows:
FPPCA order for the period Oct’08 to Mar’09 was given by the Hon’ble BERC on
31.03.2010 to recover FPPCA charges provisionally @ 69 paise/unit and cost works
out to be Rs. 173.97 Cr.
FPPCA order for the period Apr’09 to Sept’09 was given by the Hon’ble BERC to
recover FPPCA charges provisionally @ 69 paise/unit and cost works out to be Rs.
210.80 Cr.
Total Rs. 385.77 Cr. recoverable from the consumers. Government pays Rs. 90 Cr.
to BSEB. The recoverable amount gets reduced to Rs. 295 Cr..
The amount to be billed in five (5) monthly instalments of Rs. 59 Cr. per month. No
billing could be done for the month of December,2010. As such, the billing was to be
done for Rs. 295 Cr.- Rs.59crores= Rs. 235 Cr..
However, due to higher T&D loss in comparison to trajectory set by the Hon’ble
Commission, the Board could not bill approx. Rs. 17 Cr. to the consumers on account
of disapproved billed units accruing beyond normative T&D loss allowed in the
formula for FPPCA prescribed by the Hon’ble Commission in the Tariff Order. As
such, the billable units to the consumers came to Rs. (235-17) Cr.= Rs.218 Cr. only
during FY2010-2011.
The field offices could bill the consumers in the month of January2011, February2011
and March 2011 only. This implies that the billable amount against Rs. 218 Cr was
reduced to Rs.(218-59) Cr.= Rs. 159 Cr..
BSEB could bill only Rs 115.78 Cr. to the consumers during FY 2010-11 as against
Rs. 159 Cr. since some field offices could not commence billing in the month of
January, 2011 and also due to delayed change in billing softwares.”
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 102
Commission’s analysis
4.22.4 The Commission has allowed BSEB to recover FPPCA charge provisionally at the
rate of 69 paise (sixty nine paise) per unit on the energy consumption during the
period October, 2008 to March, 2009 and April, 2009 to September, 2009 from its
consumers except Kutir Jyoti/ BPL (Rural and Urban) and Pvt. Agriculture consumers
through its FPPCA orders during FY 2010-11 as mentioned below
Table 40; Details of FPPCA order issued by Commissi on during FY 2010-11
Period of FPPCA Date of issue of FPPCA Order Amount (Rs. Cr.)
October, 2008 to March, 2009 30th Marc’10 173.97
April, 2009 to September, 2009 19th May'10 210.80
Gross billable FPPCA during FY 2010-11 384.77
4.22.5 Despite the fact that the Commission has issued the FPPCA order in the month of
Mar’10 and May’10 with the option for BSEB to recover the FPPCA amount of Rs.
384.77 in six (6) monthly instalments, however, the Board could not bill the said
amount to its consumers.
4.22.6 The Commission is of the opinion that, the Board was given sufficient time to recover
the FPPCA amount of Rs. 384.77 Cr. during the FY 2010-11 itself. However, due to
the in-efficiency of the Board in terms of their billing process the Board could not bill
the said amount in totality during FY 2010-11. Accordingly, the Commission has not
passed on the in-efficiency of BSEB to the consumers and has considered Rs.
384.77 as accrued to BSEB during the FY 2010-11.
4.22.7 The Commission shall take appropriate adjustment while truing-up of ARR for FY
2011-12 provided the BSEB is able to substantiate the total billing against the
FPPCA charges approved for FY 2010-11 on actual/ billed basis.
4.22.8 Further, the Commission is of the view that the Boards inability to bill the FPPCA
charges approved for the FY 2010-11 during the year may create revenue gap and
incidental carrying costs which would be passed on to the consumers unnecessary.
Accordingly, the Commission has considered Rs. 178.98 Cr. as deemed to be
accrued under the head of FPPCA charges and has added the same to the revenue
from sale of power for FY 2010-11.
Table 41: Revenue through FPPCA (Rs. Cr.)
Parameter Amount
Total Revenue to be billed through FPPCA charges during FY 2010-11 384.77
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 103
Parameter Amount
FPPCA support from State Government 90.00 Revenue recovered through Fuel cost adjustment charges as per audited Annual Accounts of FY 2010-11
115.79
Balance amount to be recovered through consumers on FPPCA head 178.98
4.22.9 The Commission approves the revenue from sale of po wer of Rs. 2554.96 (Rs.
2375.97 + Rs. 178.98) Cr. for the FY 2010-11 as per audited annual accounts
and FPPPCA orders issued in this regard.
4.23 Grant / Revenue Subsidy from State Government
Petitioner’s submission
4.23.1 BSEB in its true-up petition for the FY 2010-11 has requested the Commission to
treat the resource gap funding to BSEB by the State government as resource gap/
grant intended to first compensate BSEB for meeting the financial losses suffered by
BSEB on account of the difference between actual T&D loss of BSEB and T&D loss
allowed by the Commission and balance amount if any should be taken as subsidy to
agriculture and rural consumers of BSEB.
4.23.2 BSEB has submitted that it has not been able to meet the loss trajectory as approved
by the Commission on account of various reasons including condition of the network,
defective consumer meters, unmetered consumers, massive and large scale
electrification of villages under RGGVY scheme leading to expansion of rural
distribution network, etc. BSEB has further submitted that though it has taken up
steps towards improving the performance, the results have not been as per the
requirement.
4.23.3 BSEB has further submitted that the Commission has also appreciated this fact in its
Tariff Order for FY 2011-12 dated 1st June, 2011, while disallowing the request of
BSEB for re-fixing higher T&D loss reduction trajectory, at para 4.3.3 observing that
“if BSEB is not able to meet loss reduction trajectory due to implementation of
Government sponsored RGGVY scheme, then it should ask for subsidy to
compensate for the increased T&D losses”. BSEB being a Government of Bihar
entity, the un-bridged expenditure gap has to be met either by revenue income from
tariff fixed by the Commission for the different categories of consumers or to be met
as subsidy/resource gap by the Government of Bihar.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 104
4.23.4 Accordingly, BSEB had approached the Government of Bihar for financial assistance
to bridge the resource gap arises out of increasing T&D losses. The Government of
Bihar has provided financial assistance to BSEB to meet the aforesaid resource gap
which was Rs. 90 Cr. per month in FY 2010-11 to meet ever increasing resource gap
on account of expanding rural network and consequent increasing T&D losses
beyond allowed trajectory of T&D losses.
4.23.5 BSEB has further contended that while determining ARR, the Commission had
considered this resource gap funding by the Government of Bihar as income to
BSEB treating it as subsidy to consumers by the Government of Bihar and to that
extent all the consumers across the board are subsidised by the Commission while
fixing tariff for different consumer categories. Therefore, even though BSEB receives
the resource gap for meeting the revenue deficit for bridging the gap between the
expenditure vis-à-vis revenue, BSEB remains in perpetual loss due to aforesaid
treatment of the resource gap by the Commission in its Tariff Orders.
4.23.6 In line with the above submission, BSEB has requested the Commission to consider
Rs. 477.30 Cr. after adjusting the disallowed power purchase cost of Rs. 602.70 Cr.
as available resource gap funding for reducing the Aggregate Revenue Requirement
to arrive at the revenue gap for FY 2010-11.
Commission’s analysis
4.23.7 The Commission has examined the contention of the Board and is not in agreement
with the proposed post-facto adjustment of the revenue resource gap grant given by
the State Government against the financial losses caused due to the difference
between the actual T&D loss of BSEB and the T&D loss trajectory approved by the
Commission. The Commission is also in receipt of the copy of the letter from the
Energy Department, Govt. of Bihar dated 19/9/11 outlining the priority of use of the
resource gap funding provided by the Govt. to BSEB. The views of the Commission
in the matter are expressed in subsequent paragraphs.
4.23.8 The Commission has been treating the resource gap funding available from the state
Govt. for reducing the ARR of BSEB thus subsidising the consumers of the state
across the board. The treatment adopted by the Commission is based on the
submission of BSEB in its tariff filings. Certain references in this regards from the
Commission’s past Tariff Orders and BSEB tariff filings are highlighted below.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 105
BERC Tariff Order for FY 2006-07:
“6.12 GRANT FROM STATE GOVERNMENT
The State Government in letter No.1412 dated 26.4.2006 communicated sanction
of a grant of Rs.720 Cr. as a resource gap during 2006-07 towards payment of
power purchase bills of NTPC. This grant also figures in the Volume-III of the tariff
petition submitted by BSEB vide letter dated 22.05.2006. The Commission
considered the Rs.720 Cr. as a resource to cover the revenue gap during 2006-
07.”
Tariff Filing by BSEB in FY 2008-09:
“12.0 Net Deficit
12.01 Considering the ARR for FY09 and income from existing tariff and non tariff
income, the net deficit comes to Rs. 1022.83 Cr..
12.02 State Govt. Grant
State Govt. of Bihar has issued orders for release of Rs. 60 Cr. per month for
payment of energy bills of NTPC during FY08. Considering that same level of grant
from State Govt. ie amount of Rs. 720 Cr. will be available during FY09, then the
deficit for FY09 will get reduced from Rs. 1022.83 Cr. to Rs. 302.83 Cr..”
Tariff Filing by BSEB in FY 2010-11:
“18.00 Net Deficit
18.01 State Govt. Grant & subsidy
The State Govt. has been providing a fixed grant of Rs. 720 Cr. per year during
FY07, FY08, FY09 and FY10 to meet part of resource gap. No direct subsidy to
any particular category of consumers has been specified by the State Govt.
However, from December 09 State Govt. is paying Rs90 Cr./month . It is expected
that in FY11 the State Govt. will provide Rs 1080 Cr. to Board. The tariff rate to
most of the category of consumers has been subsidised. Board is expecting that
during FY11 State Govt.'s grant of Rs.1080 cores will be paid to BSEB.
18.02 Considering the ARR for FY11 and income from existing tariff and non tariff
income and the state Govt. grant of Rs. 1080 Cr. the net deficit comes to Rs.
578.65 Cr..”
4.23.9 As can be seen from the above references, the revenue resource gap grant has
always been proposed by the Board for reducing the net deficit in the ARR and thus
reducing the average cost of supply of electricity and subsidising all categories of
consumers in the state. The Commission had also aligned its approach with the
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 106
proposal of BSEB and accordingly has already passed on the benefit of the resource
gap grant received from the State Government to the consumers in the past Tariff
Orders. The letter from State Government received in the past in this regards also did
not mention the priority of usage as outlined in the latest letter dated 19/09/11 and
only mentioned that the support is being made available for payment of power
purchase cost directly to NTPC.
4.23.10 Accordingly, the Commission does not agree with the prayer of the Board to adjust
the cost of dis-allowed power purchase from the resource gap grant and then use
the remaining amount for subsidising the consumers. The Commission retains the
resource gap assistance of Rs. 1080 Cr. received from the State Government as
subsidy to consumers for FY 2010-11. The revenue gap for the FY 2010-11 will be
computed considering the same.
4.24 Approved ARR and Revenue Gap for FY 2010-11
4.24.1 In view of the above analysis, the annual revenue requirement along with the
revenues at existing tariffs and revenue gap for FY 2010-11 is summarized
hereunder:
Table 42: Summary of Trued up ARR and Revenue gap f or FY 2010-11 (Rs Cr.)
Description FY 2010-11 (Approved)
As per BSEB True up petition
Now Approved in True up FY
2010-11 Power Purchase Cost 2,635.55 3,251.78 3,251.78
Own Generation Cost 64.07 66.33 58.66
Repair & Maintenance Expenses 95.00 62.51 62.51
Employees Cost 660.00 744.30 575.32
Admin & General Expenses 38.76 38.83 38.83
Depreciation 75.72 90.45 60.53
Interest & Finance Charges 184.13 306.37 59.49
Interest on Working Capital - 92.17 51.89
Return on Equity - 213.32 -
Other Debits and extraordinary Items - 0.17 0.17
Less: Prior Period Credits / (Charges) - 290.41 290.41
Total Revenue Requirement 3,753.23 4,575.81 3,868.76 Less: Expenditure disallowed due to higher T&D losses - 605.47 623.54
Less: Non-Tariff Income 172.08 44.73 145.76
Net Revenue Requirement 3,581.15 3,925.62 3,099.46
Revenue from sale of Power 2,451.49 2,375.97 2,554.96
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 107
Description FY 2010-11 (Approved)
As per BSEB True up petition
Now Approved in True up FY
2010-11 Grant from Govt. 1,080.00 474.53 1,080.00
Total Gap/ (Surplus) 49.66 1,075.12 (535.50)
4.24.2 The BERC Tariff Regulations provide for Revenue gap of next year to be adjusted as
a result of Review and Truing up exercises. While approving adjustments towards
revenue / expenses in future years, arising out of Review / Truing up exercises, the
Commission may allow the carrying costs as determined by the Commission on such
expenses / revenues. However, such carrying costs shall be limited to the interest
rate approved for working capital borrowings.
4.24.3 As per sub-section 87 of the Bihar Electricity Regulatory Commission (Terms and
conditions for determination of Tariff) Regulations, 2007
“In the case of abnormal variation in income or expenses or both, which will affect
tariff substantially, the Commission may direct it to include the same, including its
impact as a Regulatory asset in the tariff and also provide for its recovery through
tariff for one or more years or as a surcharge for one or more years , as it may deem
fit, to protect the interests of the consumers / utility/ both, unless the Commission is
of the opinion that the same cannot be met fully or partially from the balance under
any other consumer account, the amount of which has already taken from the
consumer through tariff.”
4.24.4 In light of the above provision of the BERC Tariff Regulation, the Commission is of
the opinion that the BSEB was in surplus during FY 2010-11 by way of recovering
more amount than what was required to be recovered from its consumers, which in a
way means that the consumers have lent money to the BSEB. Further, the case of
revenue surplus also indicates a situation wherein the Board would have required
lesser quantum of working capital during the FY 2010-11 and in subsequent years,
4.24.5 As the Commission has genuinely compensated the BSEB by allowing carrying cost
for one and half year on trued-up revenue gap for FY 2006-07 to FY 2009-10, the
impact of revenue surplus should also be passed on to the Consumers in terms of
interest on surplus revenue at the rate of SBI PLR to reduce the tariff burden on the
consumers. Accordingly, the Commission approves interest on revenue surplus for
one and half year (FY 2011-12 entire year and FY 2012-13 half year) amounting to
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 108
Rs. 104.42 Cr. on the revenue surplus for FY 2010-11 arising on account of the
truing up exercise
Table 43: Summary of the Carrying cost permitted (R s Cr.)
Sl. Particulars Approved truing up
surplus for FY 2010-11
1. Revenue Surplus approved for FY 2010-11 to be carried forward (535.50)
2. Interest for FY 2011-12 (SBI PLR @ 11.75%) (69.62)
3. Interest for six (6) months during FY 2012-13 (SBI PLR @ 13%) (34.81)
4. Total Surplus with interest (639.93)
4.24.6 The trued up revenue surplus as approved by the Commission for FY 2010-11
amounts to Rs. 639.93 Cr. as against revenue gap of Rs 1075.12 Cr. proposed by
the Petitioner in the true-up petition of FY 2010-11.Accordingly, the same would be
carried forward to the ARR of the FY 2012-13 for adjustment.
4.24.7 The net revenue surplus to be carried forward in FY 2012-13 after the truing up
exercise for FY 2010-11 is Rs 639.93 Cr.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 109
5 Review of FY 2011-12
5.1 Background
5.1.1 BSEB filed its ARR & tariff petition for FY 2011-12 based on the actual data available
of FY 2009-10. The Commission had approved the ARR & Tariff for FY 2011-12
along with regulatory asset in its Tariff Order for FY 2011-12 dated 1st June, 2011.
The approval was based on prudence check of the estimates presented by the Board
for costs to be incurred and revenues likely to be generated by the Board during the
year. Now based on the revised estimates of expenses for FY 2011-12, BSEB has
submitted the petition for review of its ARR for FY 2011-12. Subsequently, BSEB
vide letter No. Com/ Tar-132/ 2011-392 dated 2nd March, 2011 submitted the audited
annual accounts for FY 2010-11 along with the audit certificate issued by CAG to the
Commission.
5.1.2 The Commission in this Order has carried out the review exercise for FY 2011-12
based on the revised estimates submitted by the Petitioner and the audited annual
accounts of FY 2010-11, although the same shall be considered for final true-up
when the audited accounts for the year are made available by the Petitioner.
5.1.3 This chapter compares the performance of the Board vis-à-vis the targets set in the
Tariff Order approved for FY 2011-12. The performance data for FY 2011-12 have
been considered from the data contained in the tariff petition for FY 2012-13.
5.2 Category wise Sales
Petitioner’s submission
5.2.1 The Petitioner in its revised estimates has estimated the total energy sales to intra
state consumers of 6099 MUs and 848 MUs of inter-state sales during FY 2011-12.
Table 44: Summary of revised Category-wise Sales (M Us) projected by BSEB for FY 2011-12 for BSEB
Sl. Category (FY 2011-12) Approved sales in Tariff Order for FY 2011-12
BSEB Revised estimates FY
2011-12 1 Kutir Jyoti Un-metered (Rural)
260.41 65.43
2 Kutir Jyoti Metered (Rural) 257.98
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 110
Sl. Category (FY 2011-12) Approved sales in Tariff Order for FY 2011-12
BSEB Revised estimates FY
2011-12 3 Kutir Jyoti Metered (Urban) 2.66 1.29
4 Domestic ‐I 885.72 924.86
5 Domestic ‐II 1,424.17
1,217.44
6 Domestic ‐III 0.9
7 N.D.S.‐I (Rural) 28.58 20.61
8 N.D.S.‐II (Urban) 574.66 506.61
9 N.D.S.-III (Temple etc) 6.67 15.75
10 IAS‐I (Private) 263.51 271.63
11 IAS‐II (Government) 134.77 166.99
12 LTIS‐I 204.27 162.09
13 LTIS‐II 73.20 104.42
14 Public Water Works 143.49 60.39
15 Street Light‐I (Metered) 3.82 5.61
16 Street Light‐II (Unmetered) 34.37
26.2
17 Street Light‐III 1.36
18 HTSS‐I 962.15 798.56
19 HTSS‐II 288.88 351.42
20 HTSS‐III 110.29 125.45
21 HTSS 929.70 276.87
22 RTS 496.46 566.89
24 Sub-Total 6,827.78 5928.75
25 Sale from additional Power availability 693.67 171.00
26 Energy sales to intra state consumers 7521.45 6099.75
27 Energy outside State (Nepal) 550.00 555.00
28 Sale in bilateral trade/UI - 293.00
29 Total Sales 8071.45 6947.75
5.2.2 The Petitioner submitted that there is an expected growth in number of Kutir-
Jyoti/BPL consumers to the tune of 8,86,499 on account of large scale electrification
of rural areas under the RGGVY scheme undertaken by the Petitioner. The sale to
these Kutir Jyoti metered consumers in the rural areas has been projected by BSEB
based on consumption norm of 30 units per connection per month and average
number of consumers in this tariff category.
Commission’s analysis
5.2.3 While scrutinizing the sales figures for FY 2011-12, the Commission has sought the
latest category-wise sales figures available with the Petitioner for FY 2011-12. In
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 111
response, the Petitioner vide letter no. Com/ tar-132/ 2011-375 dated 1st March 2012
informed the Commission that:
“The actual data for the period of April, 2011 to November, 2011 is not available as
annual accounts are not yet finalized.”
5.2.4 The Commission is of the opinion that the Board should maintain details of monthly
billing and sales related information and the same must be submitted up to the
immediate preceding month along with the revised estimates for the current year.
The Board is directed to comply with the same in all future ARR/ Tariff filings.
5.2.5 In the absence of any better information and in view of the recent APTEL judgment
dated November, 2011 directing all SERCs to endeavour to carry out review and
truing up exercise on year to year basis, the Commission is considering the sales
data submitted by the Board in approving the revised estimates for FY 2011-12.
However, the same shall be subject to final true-up when the Annual Accounts for FY
2011-12 are made available.
5.2.6 In view of the above the Commission approves the revised estimates of sales for FY
2011-12 at 6947.75 MUs as proposed by the Board.
5.3 Transmission and Distribution Losses
Petitioner’s submission
5.3.1 The Table below summarises the overall T&D loss levels as submitted by the
Petitioner as revised estimates for FY 2011-12:
Table 45: Proposed T&D losses as revised estimates for FY 2011-12
Particular FY 2011-12 (Approved) FY 2011-12 (Revised estimate) T&D Losses (%) 29.00 % 42.00 %
5.3.2 The Board has informed that it has undertaken massive electrification works under
the RGGVY scheme. There has been a tremendous increase in the network of BSEB
in the last 2 years in the rural areas consequent to village electrification. The village
electrification drive has led to an addition of large number of Kutir Jyoti consumers.
Number of such consumers is expected to go up to 27 lakhs within the next two
years from 5.89 lakhs in FY 2010-11. This significant expansion of the network has
not only led to increase in the technical losses in the system, but has also rendered
the system porous and prone to theft of electricity. Due to both these reasons, BSEB
has not been able to achieve the T&D loss targets set by Commission.
5.3.3 The Board has prayed to the Commission to approve the T&D loss levels for FY
2011-12 at 42% in consideration of the existing T&D loss levels of BSEB. Further, it
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 112
has also requested the Commission to compensate the difference between actual
power purchase cost and power purchase cost calculated based on the agriculture
consumption norm and T&D loss trajectory from the resource gap funding provided
by the State Government.
Commission’s analysis
5.3.4 The Commission has fixed a target of T&D losses at 29% for the FY 2011-12 in its
Tariff Order for FY 2008-09. The trajectory has already been reviewed earlier and the
Commission is of the view that it is the responsibility of the BSEB to reduce its
distribution losses and take appropriate measures to bring down the losses.
5.3.5 Accordingly, the Commission approves the Transmission & Distribution losses of
29% in review for FY 2011-12. The same shall be considered at the time of
computation of the approved power purchase cost.
5.3.6 The table below summarises the T&D loss levels target set by Commission, T&D loss
as per revised estimate of BSEB and the approved T&D loss for FY 2011-12:
Table 46: Approved T&D Loss for FY 2011-12
Particulars As per loss target set for FY 2011-12 by BERC
FY 2011-12 (Revised estimate)
FY 2011-12 (Approved revised
estimates) T&D Losses (%) 29% 42.00% 29%
5.4 BSEB’s Own generation
Petitioner’s submission
5.4.1 BSEB owned and operated only one thermal generating plant i.e. Barauni Thermal
Power Station (BTPS) located at Barauni. The total installed capacity of the BTPS in
FY 2010-11 was 320 MW. The current status of all units of BTPS is summarized in
the table below for reference:
Table 47 : Current Status of different units of BTP S
Unit Unit capacity
(MW)
Date of
Commissioning Current status
I Retired N/A Retired since 17.02.1983
II Retired N/A Retired since 26.11.1985
III Retired N/A Retired since 05.10.1985
IV 50 9/11/1969 Shutdown since 24.04.1996
V 50 1/12/1971 Shutdown since 15.03.1995
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 113
Unit Unit capacity
(MW)
Date of
Commissioning Current status
VI 110 1/12/1984 Unit working at de-rated capacity; Dismantling of
the Unit and its R&M work is planned from Jul’12
VII 110 31/03/1985 Under shutdown; R&M is underway; Expected to
come in operation from Jul’12
5.4.2 The Board has also submitted that, Units I, II and III were retired long back i.e. before
1985. Out of the remaining four units, unit number IV and V are over 42 and 40 years
old respectively and have completed their useful economic life. These Units are
under shutdown for over 17 years. At present Unit VII is under shutdown and
undergoing Renovation & Modernization (R&M) work for revival. Dismantling of the
Unit VI for R&M work is planned from July 2012 while R&M of Unit VII is expected to
be completed by June 2012.
5.4.3 BSEB has submitted that the station heat rate (SHR) is expected to improve from FY
2010-11 level of 4103 kCal/kWh to 4000 kCal/kWh for FY 2011-12. The Board has
submitted that the coal price in FY 2010-11 was Rs. 1823 per MT but in recent time it
has witnessed steep hike and has reached the level of Rs. 3317 per MT in month of
August, 2011. Hence coal price for FY 2011-12 is expected to be on higher side from
the level of FY 2010-11. Other fuel related cost is projected in the ratio of other fuel
related cost to fuel cost in FY 2010-11.
5.4.4 The assumptions and norms used by BSEB for projection of own generation cost is
summarized in the table below:
Table 48: Proposed Plant parameters & Fuel cost det erminants for BTPS
Parameters Units FY 2010-11 (Actual)
FY 2011-12 (Approved) FY 2011-12 (RE)
Gross Units Generated MU 220.44 300.00 202.00
Auxiliary Consumption MUs 39.56 30.00 30.30
Net Generation MUs 180.88 270.00 171.70
Capacity MW 220 105 220
Derated Capacity MW 220 105 220
Plant Load Factor % 11.44% 32.62% 10.45%
Auxiliary Consumption % 17.95% 10.00% 15.00%
Station Heat Rate kcal/kWh 4,103 4,316 4,000
Sp. Oil Consumption ml/kWh 31.48 10.00 35.00
Gross Calorific Value of Coal kcal/kg 3,858 4,284 3,800
Calorific Value of Oil kcal/l 9,950 10,000 9,996
Overall Heat G Cal 904,534 1294878 808,009
Heat from Oil G Cal 69,046 30,000 70,671
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 114
Parameters Units FY 2010-11 (Actual)
FY 2011-12 (Approved) FY 2011-12 (RE)
Heat from Coal G Cal 835,488 12,64,878 737,337
Transit losses % - 3.80% - -
Actual Oil Consumption kl 6,939 3000 7,070
Actual Coal Consumption MT 216,560 3,06,948 194,036
Specific Coal Consumption kg/kWh 0.98 1.02 0.96
Price of Coal Rs./MT 1,823 2,328 2,600
Price of Oil Rs/kl 31,388 30,000 50,780
Coal Cost Rs. Cr. 39.48 71.46 50.45
Oil Cost Rs. Cr. 21.78 9.00 35.90
Fuel Cost Rs. Cr. 61.26 80.46 86.35
Other Fuel Related costs Rs. Cr. 5.06 - 7.13
Total Fuel Costs Rs. Cr. 66.32 80.46 93.48
Total Fuel Cost/Gross Generation Rs/unit 2.78 2.68 4.63
Total Fuel Cost/Net Generation Rs/unit 3.39 2.98 5.44
5.4.5 BSEB revises its estimate of fuel cost for FY 2011-12 to Rs. 93.48 Cr. against Rs.
80.46 Cr. approved by the Commission.
5.4.6 The Commission vide letter No. BERC- Tariff – 24/11- 825 dated 21st December,
2011 enquired about the generation related data and information of BTPS Barauni
such as actual generation, performance parameters, month wise projected
generation and performance parameters, reasons of non-achievement of
performance parameters during FY 2010-11 and FY 2011-12 (upto Nov’11) despite
investment under R&M head etc. The Commission also sought clarification on the
high generation cost of power from BTPS despite investment on R&M, actual coal
Transit loss and the basis for steep hike proposed for FY 2011-12 (RE) in Coal and
Oil price.
5.4.7 On non-achievement of performance parameters during FY 2010-11 & FY 2011-12
(upto December 2011), the BSEB has submitted that it is due to non-completion of
R&M work of unit VII. Unit VI is in operation after restoration since July 2007. As per
schedule norms, its capital maintenance is now due. The R&M of unit VI will start
after completion of R&M work of unit VII.
5.4.8 Further, BSEB has submitted that Unit VI of BTPS will go for R&M in June, 2012 and
Unit VII will come in operation after R&M in July, 2012. Unit VII will be in stabilisation
period and hence the operational parameters will be on higher side. The main reason
for such high fuel cost is cost of coal and cost of oil which has increased substantially
in recent period.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 115
Table 49: Fuel cost trend submitted by BSEB
Sl. Financial Year Coal Price/MT (in Rs.) Oil Price/Kl (in Rs.)
LDO FO
1 2008-09 1221.27 36915.33 29260.59
2 2009-10 1701.00 43808.72 26896.00
3 2010-11 1822.92 51369.98 30037.70
5.4.9 BSEB has informed the Commission that the Board do not have weighing machine in
working condition at their power plant and hence it is not possible to know actual coal
transit loss. In such scenario, coal transit loss is projected at 0% for FY 2011-12.
Commission’s analysis
5.4.10 The Commission in revised estimate approves the cost of BTPS as per trajectory set
by the Commission in the Tariff Order of FY 2011-12.
5.4.11 The Commission approves GCV of coal based on average of actual GCV of coal for
FY 2009-10 and FY 2010-11. For SHR and cost of coal the Commission approves
the values as submitted by the Petitioner keeping in mind the age of the plant and
current price trend of coal; however the Commission has considered the actual cost
of coal and oil of first nine (9) months of FY 2011-12 for approving the cost of coal
and oil for FY 2011-12.
5.4.12 Based on the above parameters, the cost of generation of BTPS as reviewed by the
Commission for FY 2011-12 is given below:
Table 50: Approved Plant parameters of BTPS & fuel cost determinants for FY 2011-12
Parameters Units FY 2011-12
(Approved in Tariff Order)
FY 2011-12 (RE)
Approved RE for FY 2011-12
Gross Units Generated MU 300.00 202.00 202.00
Auxiliary Consumption MUs 30.00 30.30 20.20
Net Generation MUs 270.00 171.70 181.80
Capacity MW 105 220 220.00
Derated Capacity MW 105 210 210.00
Plant Load Factor % 32.62 10.45 10.98
Auxiliary Consumption % 10.00 15.00 10
Station Heat Rate kcal/kWh 4,316 4,000 4,000.00
Sp. Oil Consumption ml/kWh 10.00 35.00 10.00
Gross Calorific Value of Coal kcal/kg 4,284 3,800 3,968.50
Calorific Value of Oil kcal/l 10,000 9,996 10,000.00
Overall Heat G Cal 1294878 808,009 808,000.00
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 116
Parameters Units FY 2011-12
(Approved in Tariff Order)
FY 2011-12 (RE)
Approved RE for FY 2011-12
Heat from Oil G Cal 30,000 70,671 20,200.00
Heat from Coal G Cal 12,64,878 737,337 787,800.00
Transit losses % 3.80 0 0
Actual Oil Consumption kl 3000 7,070 2,020.00
Actual Coal Consumption MT 3,06,948 194,036 198,513.29
Specific Coal Consumption kg/kWh 1.02 0.96 0.98
Price of Coal Rs./MT 2,328 2,600 2,846.97
Price of Oil Rs/kl 30,000 50,780 45,240.28
Coal Cost Rs. Cr. 71.46 50.45 56.52
Oil Cost Rs. Cr. 9.00 35.90 9.14
Fuel Cost Rs. Cr. 80.46 86.35 65.65
Other Fuel Related costs Rs. Cr. - 7.13 6.39
Total Fuel Costs Rs. Cr. 80.46 93.48 72.04
Total Fuel Cost/Gross Generation Rs/unit 2.68 4.63 3.57
5.4.13 The generation cost approved by the Commission on the above parameters is
subject to true-up, as and when the audited annual accounts and actual generation
data is submitted by the Petitioner for FY 2011-12.
5.5 Power Purchase
Petitioner’s submission
5.5.1 BSEB has projected the power purchase costs at Rs.4163 Crs including PGCIL
charges for purchase of 11,931 MU for FY 2011-12 in its revised estimate.
5.5.2 The Board in its petition has also intimated that it has started procuring 300 MW
short-term power purchase through NVVNL from September 2011 at the rate of Rs.
4.09 per kWh. Considering 85% of availability, energy available during FY 2011-12 is
projected at the level of 1304 MU.
5.5.3 The Petitioner submitted that cost of power from each source for the year FY 2011-
12 has been projected based on the actual costs incurred/bills received for the period
April’2011-August’2011.
5.5.4 Based on the above, the projected energy availability of BSEB from the long term
sources is summarized in the table below:
Table 51: Power Purchase Cost Projected by the Peti tioner for FY 2011-12 (RE)
Station Allocated Capacity (MW)
Units available (MU)
Per unit cost ( Rs/ kWh)
Total Cost (Rs Cr.)
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 117
Station Allocated Capacity (MW)
Units available (MU)
Per unit cost ( Rs/ kWh)
Total Cost (Rs Cr.)
NTPC Farakka 466 2,889 4.36 1,260 Talchar 398 2,449 2.84 696 Kahalgaon 439 2,670 3.63 969 KBUNL 110 321 3.65 117
NHPC Rangit 21 119 1.54 18 Teesta 109 549 1.28 70
PTC Chukka 80 543 1.53 83 Tala 260 909 1.78 162 Others
NEA - 4 4.41 2 BSHPC 50 30 2.49 8 NSSM 18 29 3.35 10 Short/Medium Term 300 1,304 4.09 533 RE Purchase Solar 1 15.00 1 Other renewable 114 3.90 44 PGCIL Charges 190
Total 2250 11,931 3.49 4,163
Commission’s analysis
5.5.5 Plant-wise expected power purchase quantum and its total cost for FY 2011-12 (RE)
as approved by the Commission are as given below:
Table 52: Approved revised estimates of Power Purch ase Cost for FY 2011-12 (RE)
Station
Approved Units
(MU) in FY 2011-12 Tariff
Order
Approved Per unit
cost ( Rs/ kWh) in FY 2011-12 Tariff
Order
Approved Total
Cost (Rs Cr.) FY 2011-12
Tariff Order
Approved Units
(MU) FY 2011-12
(RE)
Per unit cost (
Rs/ kWh)
Now Approved
Total Cost (Rs Cr.) FY 2011-12
(RE) NTPC Farakka 2889 3.42 988 2,889 4.36 1,258 Talchar 2590 2.41 624 2,449 2.84 694
Kahalgaon 2851 2.94 837 2,670 3.63 968 KBUNL 500 3.65 183 321 3.65 117
NHPC Rangit 145 1.89 27 119 1.54 18
Teesta 550 1.71 94 549 1.28 70
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 118
Station
Approved Units
(MU) in FY 2011-12 Tariff
Order
Approved Per unit
cost ( Rs/ kWh) in FY 2011-12 Tariff
Order
Approved Total
Cost (Rs Cr.) FY 2011-12
Tariff Order
Approved Units
(MU) FY 2011-12
(RE)
Per unit cost (
Rs/ kWh)
Now Approved
Total Cost (Rs Cr.) FY 2011-12
(RE)
PTC Chukka 560 1.59 89 543 1.53 83
Tala 1020 1.84 188 909 1.78 161 Others NEA 67 4.33 29 4 4.41 2 BSHPC 41 2.49 10 30 2.49 8 NSSM 12 4.12 5 29 3.35 10 Short/Medium Term - - - 1,304 4.09 533 RE Purchase Solar 1 15.00 1 1 15.00 1 Other renewable 131 3.90 51 114 3.90 44 PGCIL Charges 190
Total 11,356 3395 11,931 4,157
5.5.6 The revised power purchase cost for FY 2011-12 approved by the Commission from
the different sources is subject to true-up, as and when the actual power purchase
cost with audited annual accounts will be submitted by the Petitioner for FY 2011-12.
5.6 Energy Balance
Petitioner’s submission
5.6.1 Energy balance depicts the balance between total energy sales and T&D losses (i.e.)
energy requirement and energy available from own generation and power purchased
from various generating sources.
5.6.2 BSEB has projected inter-state transmission losses of 3.31% with a justification that it
is the actual central sector eastern region transmission losses. Further, BSEB vide
letter No Com/Tar/161/2011-260 dated 09th February, 2012 explained that the
Energy balance has been worked out based on the same methodology as adopted
by the Commission in its Tariff Order for FY 2011-12. For power availability, own
generation and net power purchase is taken into consideration. For power
requirement, sale to consumer, additional power sale to consumer, sale to Nepal and
sale through Bilateral/UI has been considered. T&D losses are applied on sale to
consumers in Bihar and Sale to Nepal only and not applied on the sale under
bilateral/UI while projecting for FY 2011-12.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 119
5.6.3 The projected gross energy requirement, energy availability and additional power
purchase required because of actual and approved losses for BSEB for FY 2011-12
(RE) is as follows:
Table 53: Proposed Energy Requirement & Energy Bala nce
Particulars
FY 2011-12 (Approved
by BERC FY 2011-12)
FY 2011-12 (As per
BSEB loss projection)
FY 2011-12 (As per
BERC loss approved)
Energy Sales within State (MU) 6828 5929 5929
Sale from additional Power Availability (MU) 977 171 171 Energy outside State (Nepal) (MU) 550 555 555 Sale in biteleral trade/UI (MU) - 293 293
Total Sales (MU) 8355 6948 6948 T&D Losses (MU) 3013 4819 2718 T&D Losses (%) 29% 42% 29% Energy Requirement 11,368 11,768 9,667
Energy Availability (MU) Own Generation (MU) 270 172 172 Total Power Purchase from long term sources (MU) 11,356 11,931 11,931 Transmission loss in regional losses (%) 2.43% 3.31% 3.31% Less: Transmission loss in regional losses (MU) 258 335 335 Net Power Availability (MU) 11,368 11,768 11,768 Disallowable Power Purchase (MU) 2101
5.6.4 BSEB has further submitted that for FY 2011-12, BSEB projects to under-achieve the
T&D loss as compared to the T&D loss trajectory approved by the Commission
hence BSEB is required to purchase additional power of 2101 MUs for FY 2011-12
as indicated in Energy Balance. Based on the net power purchase rate, additional
power purchase cost works out to Rs. 754.26 Cr. for FY 2011-12. Board has
requested the Commission to reduce resource gap funding to the extent of such
disallowances and only remaining amount need to be considered as subsidy
available for consumers.
Commission’s analysis
5.6.5 The Commission approves the limits for energy requirement and energy availability
as given below for the FY 2011-12. Commission while approving the energy balance
considered the inter-state transmission losses of 2.43% as approved in the Tariff
Order of FY 2011-12. Further, the disallowed power purchase cost is estimated on
the basis of the approved level of T&D losses.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 120
Table 54: Approved Energy Requirement for FY 2011-1 2 (RE)
Particulars
FY 2011-12 (Approved by BERC
FY 2011-12)
FY 2011-12 (As per
BERC loss approved)
FY 2011-12 (RE)
Approved by BERC
Energy Sales within State (MU) 6828 5929 5,929 Sale from additional Power Availability (MU) 977 171 171 Energy outside State (Nepal) (MU) 550 555 555 Sale in biteleral trade/UI (MU) - 293 293 Total Sales (MU) 8355 6948 6,948 T&D Losses (MU) 3013 2718 2,718 T&D Losses (%) 29% 29% 29.00% Energy Requirement 11,368 9,667 9,667 -
Energy Availability (MU) - Own Generation (MU) 270 172 182
Total Power Purchase from long term sources (MU) 11,356 11,931 9,721 Transmission loss in regional losses (%) 2.43% 3.31% 2.43% Transmission loss in regional losses (MU) 258 335 236.22
Net Power Availability (MU) 11,368 11,768 9,667
Disallowable Power Purchase (MU) 2101 2,210
5.7 Operation & Maintenance Expenses (O&M)
Employee Expenses
Petitioner’s submission
5.7.1 The employee cost comprises salaries and wages, dearness and other allowances,
pension, gratuity and staff welfare expenses etc.
5.7.2 BSEB submitted that they are calculating the terminal liabilities on provisional basis
and hence the amount of terminal benefits/retiral dues payable to the retired
employees is not treated as expenditure for the year. The amount actually paid is
adjusted against the provision made in the books of account for pension, gratuity and
leave encashment. BSEB has also submitted that, in view of the severe financial
crunch mainly on account of average tariff lower than average cost of supply, BSEB
has not been able to maintain separate fund for retiral liabilities as per the provisions
made in the Annual Accounts hence, there has been a practice by BSEB to meet
such unfunded liability out of the revenue realized from sale of energy during the
period of incidence of discharge of such liabilities.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 121
5.7.3 BSEB has accordingly submitted that the total expenditure under the head of
employee costs is 593.90 Cr. as per the annual accounts for FY 2010-11 and Rs.
168.99 Cr. paid to its retired employees as unfunded terminal liabilities in FY 2010-
11.
5.7.4 For projection of employee cost for FY 2011-12, BSEB has considered that the
employee expenses will increase by 10% in FY 2011-12 from level of FY 2010-11.
BSEB has also projected additional cost of Rs. 11.07 Cr. for new employees for FY
2011-12. The employee cost for FY 2011-12 has been projected to be Rs. 829.8 Cr..
The details of employee cost for FY 2010-11 (actual), FY 2011-12 (RE) is as given
below.
Table 55: Employees Cost Proposed for FY 2011-12 (R E) (Rs Cr)
Sl. Particulars FY 2011-12 (RE)
SALARIES & ALLOWANCES
1 Basic Pay + Special Pay 265.24 2 Dearness Pay
3 Dearness Allowance 107.74 4 House rent Allowance 21.83 5 Fixed medical allowance 2.36 6 Medical reimbursement charges 0.90 7 Over time payment 4.93 8 Other allowances 5.39 9 Generation incentive - 10 Bonus - 11 Total 408.39 12 Leave encashment 17.14 13 Gratuity 18.16 14 Commutation of Pension - 15 Workman compensation 0.36 16 Ex- gratia -
17 Total 35.66 Pension Payment
18 Basic Pension 203.32 19 Dearness Pension - 20 Any other expenses 2.17
21 Total 205.50 22 Total (11+17+21) 649.54 23 Payment made for unfunded liabilities 189.63 24 Increase in employee cost Due to New Recruitments 11.07 25 Grand Total (22+23+24) 850.24
26 Less: Employee cost capitalized 20.44 27 Net Employee Cost 829.80
Commission’s analysis
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 122
5.7.5 The Commission in the Tariff Order for FY 2011-12 had stated that:
“4.7.12. So far the contribution of the employees towards GPF and GSS is
concerned; this is not a part of employee cost. This amount is deducted from the
salary of the employees and should be deposited in a separate fund to be governed
by a Trust in which both BSEB and its employees are represented. Any investment
out of this fund has to be with the approval of the Trust.”
“4.7.13. The Commission directs BSEB to report the steps taken towards creation
of the trust. The Commission shall be compelled to take appropriate action, if this
direction is not complied with immediately.”
5.7.6 The Commission has already directed BSEB to create separate trust for making
payments for terminal liabilities in its Tariff Order for FY 2006‐07 as reproduced
below:
“The BSEB shall take steps to invest contribution of employees towards pension
etc., through a Trust and make arrangements to pay the pension, gratuity etc., from
the earnings of the investments through the Trust.”
5.7.7 It is apparent that BSEB has utilised the amounts available in the fund created
towards GPF and GSS contribution towards meeting its day to day expenses i.e. for
the purpose of funding its working capital requirements. Accordingly, permitting these
expenses to be passed on to the consumers shall mean that the consumers have to
bear the burden for the past financial mismanagement by the Board. The
Commission is of the view that such liabilities on account of past issues should be
funded by BSEB through its own means and should not be passed on to the
consumers at this point of time. The regulations anyways provide for normative
working capital interest to be passed on to the consumers thus meeting the working
capital requirements of the licensee for the year. However, the Commission has
always been allowing the present provision for existing employees on accrual basis.
Table 56: Approved revised estimates of employee Co st for FY 2011-12 (RE) (Rs. Cr.)
Employee cost FY 2011-12 (Approved by BERC)
FY 2011-12 (Revised estimate by BSEB)
FY 2011-12 (RE) Now approved by Commission
Generation 46.00 44.21 34.13
Transmission 88.00 98.66 76.29
Distribution 664.00 686.93 530.93
Total Employee Cost 798.00 829.80 641.36
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 123
5.7.8 The Commission has projected the employee cost of FY 2011-12 separately for each
of the generation, transmission and distribution function considering the figures of
audited annual accounts of FY 2010-11 as base value. The Commission has allowed
the additional cost of Rs. 11.07 Cr. for new employees during FY 2011-12 and
distributed the same in the ratio of employee cost of each function based on the
audited accounts of FY 2010-11. The Commission in current economic situation
considers escalation rate of 9.56% appropriate for determining employee cost for
FY2011-12 for each function. Based on the same, the Commission approves
employee cost for FY 2011-12 as depicted in the table given below:
Table 57: Function-wise employee Cost approved for FY 2011-12 (RE) (Rs Cr.)
Particulars Generation Transmission Distribution Total
Employee Cost 34.68 77.40 538.62 650.69
New Employee cost 0.59 1.32 9.16 11.07
Less : Capitalization 1.13 2.42 16.85 20.40
Net Employee Cost 34.13 76.29 530.93 641.36
% Share ot Total cost 5.32% 11.90% 82.78% 100.00%
5.7.9 The revised employee cost for FY 2011-12 (RE) approved by the Commission is
subject to true-up, as and when the audited annual accounts and actual employee
cost will be submitted by the Petitioner for FY 2011-12.
Repair & Maintenance Expenses (R&M)
Petitioner’s submission
5.7.10 BSEB has projected R&M expenses of Rs. 100.62 Cr. for FY 2011-12. BSEB has
projected that the R&M expenses will increase by 10% in FY 2011-12 from level of
FY 2010-11.
Table 58: R&M costs submitted by Petitioner for FY 2011-12 (RE) (Rs Cr)
Particulars FY 2010-11 (Actual)
FY 2011-12 (Approved)
FY 2011-12 (RE)
Plant & Machinery 34.56 43.16 43.16 Building 2.20 7.27 7.27 Hydraulic works 2.93 0.33 0.33 Civil Work 0.18 2.88 2.88 Line cable & network 17.10 35.03 35.03 Vehicles 0.09 0.20 0.20 Furniture & fixtures 0.20 0.04 0.04
Office equipments 0.14 0.15 0.15 Operating expenses - 5.94 5.94
Total expenses 57.40 95.00 95.00
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 124
Particulars FY 2010-11 (Actual)
FY 2011-12 (Approved)
FY 2011-12 (RE)
Add cost of materials procured from Board's Hdqrs - - - Net Expenses 57.40 95.00 95.00 Cost of water & Other Misc. Charges 5.11 - 5.62 Total R&M Expenses charged 62.51 95.00 100.62
Commission’s analysis
5.7.11 The Commission had already approved significant increase for FY 2011-12 during
the past Tariff Order with the expectation that higher R&M cost will help BSEB in
improving operational efficiency.
Table 59: Approved revised estimates of R&M Cost fo r FY 2011-12 (RE) (Rs. Cr.)
R&M cost FY 2011-12 (Approved by BERC)
FY 2011-12 (Revised estimate by BSEB)
FY 2011-12 (RE) Now approved by Commission
Generation 8.25 13.87 15.73
Transmission 19.68 19.68 12.82
Distribution 67.07 67.07 72.07
Total R & M Cost 95.00 100.62 100.62
5.7.12 The Commission has computed the R&M cost separately for Generation,
Transmission and Distribution functions for FY 2011-12 considering the actual
function-wise break-up data as per the annual accounts of the Board for FY 2010-11
as base value. The Commission in current economic situation considers escalation
rate of 9.56% appropriate for determining R&M cost for FY2011-12. Based on the
same, the Commission approves R&M cost for FY 2011-12 as depicted in the table
given below:
Table 60: Function-wise approved R&M costs for FY 2 011-12 (RE) (Rs Cr) Particulars Generation Transmission Distribution Total R&M Cost 10.11 12.82 72.07 95.00 Add : Water & Misc charges 5.62 - - 5.62 Total 15.73 12.82 72.07 100.62 % Share 15.63% 12.74% 71.63% 100.00%
5.7.13 The revised R&M cost for FY 2011-12 (RE) approved by the Commission is subject
to true-up, as and when the actual R&M cost will be submitted by the Petitioner for
FY 2011-12.
Administration & General Expenses (A&G)
Petitioner’s submission
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 125
5.7.14 BSEB has projected A&G cost on the 3 years CAGR based on the audited data of
A&G expenses for the period FY 2007-08 to FY 2010-11 which is 12% and thus the
A&G expenses post capitalization are projected at Rs. 53.49 Cr. for FY 2011-12.
Table 61: A&G costs submitted by Petitioner for FY 2011-12 (Rs Cr)
Particulars FY 2010-11 (Actual) FY 2011-12 (RE)
Rent, rates & taxes 0.50 0.56
Insurance - -
Telephone, postage &Telegrams 0.99 1.11
Legal Charges 0.98 1.10
Audit Fees 3.25 3.64
Consultancy fees - -
Technical fees 0.01 0.01
Other professional charges - -
Conveyance & travel expenses 4.99 5.59
Others 29.39 32.92
Freight 0.17 0.19
Total expenses 40.29 45.13
Less Capitalised 1.46 1.64
Net expenses 38.83 43.49
Add Prior period - -
Total A&G Expenses 38.83 43.49
Metering, Billing and collection - 10.00
Total A&G Expenses 38.83 53.49
Commission’s analysis
5.7.15 The Commission in current economic situation considers escalation rate of 9.56%
appropriate for determining R&M cost for FY 2011-12. Based on the same, the
Commission has approves the revised R&M cost for FY 2011-12 as depicted in the
table given below:
Table 62: Function-wise approved revised estimates of A&G costs for FY 2011-12 (RE) (Rs. Cr)
Particulars Generation Transmission Distribution Total
A&G Cost 1.29 4.79 38.06 44.15
Less : Capitalization 0.05 0.17 1.38 1.60
Add : Metering related cost - - 28.17 28.17
Total 1.25 4.62 64.85 70.72
% Share 1.76% 6.53% 91.71% 100.00%
Table 63: Approved revised estimates of A&G Cost fo r FY 2011-12 (Rs. Cr.)
A&G cost FY 2011-12 (Approved by BERC)
FY 2011-12 (Revised estimate by BSEB)
Now approved for FY 2011-12 (RE)
Generation 1.26 1.27 1.25
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 126
A&G cost FY 2011-12 (Approved by BERC)
FY 2011-12 (Revised estimate by BSEB)
Now approved for FY 2011-12 (RE)
Transmission 5.65 4.72 4.62
Distribution 45.06 47.50 64.85
Total A &G Cost 51.97 53.49 70.72
5.7.16 The revised A&G cost for FY 2011-12 (RE) approved by the Commission is subject
to true-up, as and when the actual A&G cost will be submitted by the Petitioner for
FY 2011-12.
Operation & Maintenance Expenses (O&M)
Table 64: Approved revised estimates of O&M Cost fo r FY 2011-12 (Rs. Cr.)
Sl. Particulars FY 2011-12 (Approved by BERC)
FY 2011-12 (Revised
estimate by BSEB)
Now approved for FY 2011-12
(RE)
1 Employee cost 798.0 829.80 641.36
2 Repair and Maintenance (R&M) Expenses 95.0 100.62 100.62
3 Administrative & General (A&G) Expenses 51.97 53.49 70.72
4 Total O&M Cost 944.97 983.91 812.70
5.7.17 The revised O&M cost for FY 2011-12 (RE) approved by the Commission is subject
to true-up, as and when the actual O&M cost will be submitted by the Petitioner for
FY 2011-12.
5.8 Capital Expenditure
Petitioner’s Submission
5.8.1 BSEB has taken up R&M works of Unit VI and VII under the RSVY scheme
sanctioned by the Planning Commission, Government of India. Capacity extension of
Muzaffarpur Thermal Power Plant (2x195 MW) & Barauni TPS (2X250 MW) has
been sanctioned by the State government. BSEB has also undertaken various
transmission network capacity addition, augmentation and improvement projects for
achieving its objective of making available reliable power across the State. BSEB is
already implementing many schemes for strengthening, augmenting and expanding
its distribution network. For FY 2011-12 BSEB would support ongoing schemes of
Distribution strengthening program. The ongoing schemes include transformer
replacement, procurement of new transformers, and replacement of old conductor of
HT & LT line, construction of new HT & LT lines, PSS & bays.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 127
5.8.2 BSEB has furnished function wise / scheme wise (without description of assets)
details of the proposed capital expenditure for FY 2010-11 & FY 2011-12 as given in
the table below:
Table 65: Planned Capital Expenditure proposed by B SEB for FY 2011-12
Sl. Particulars FY 2010-11 (Actual) FY 2011-12 (RE)
1 Generation a) Ongoing schemes 340.66 1,181.21 b) BRGF 14.40 153.00 Sub Total 355.06 1,334.21 2 Transmission
a) BRGF - 450.13 b) Mahatma Gandhi Setu Cable crossing 14.67 13.96 c) Ongoing Scheme 0.57 131.26
Sub Total 15.24 595.35 3 Distribution a) Ongoing Scheme 70.89 595.42 b) APDRP 68.88 68.66 c) R-APDRP 0.05 96.82
d) BRGF - - e) ADB - 20.00 f) PMGY 1.18 0.80 g) MNP - 0.50 h) Tal Diara 0.38 1.00 i) Border Area 0.04 0.05 j) ACA 21.94 76.75 k) RGGVY 237.11 315.28 l) Deposit Work 24.57 12.93
m) Others works 172.14 52.93 n) Others Capital works 43.13 92.50 Sub Total 640.31 1,333.63 Total 1,010.61 3,263.19
5.8.3 The capitalization rate of capital expenditure and opening balance of CWIP was 30%
in FY 2009-10 and 43% in FY 2010-11. BSEB has considered capitalization rate of
43% for FY 2011-12.
Commission’s View
5.8.4 As per the licence conditions para 51 of chapter 5 of BERC (Grant of licence for
Distribution of electricity) Regulations, 2007, BSEB is required to furnish details of the
proposed schemes expenditure before commencement of the project with description
of assets and its usability in furthering the efficiency or growth in the business of the
Board. Further, BSEB should seek prior approval of such capital expenditure from
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 128
the Commission. In the absence of the approval, the Commission may disallow
corresponding depreciation and interest cost.
5.8.5 The Commission vide letter no. BERC- Tariff – 24/11- 825 dated 21st December,
2011 sought clarification on sources of funding like loans, capital grant, consumer
contribution or own funding. In reply BSEB vide letter No Com/Tar/161/2011-260
dated 09th February, 2012 provided details of sources of funding. The funding details
of various schemes as provided by BSEB are as given in the table below:
Table 66: Funding details proposed by BSEB for FY 2 011-12 (RE)
Sl. Particulars FY 2011-12 (RE)
Capital Expenditure Grant Consumer
Contribution Borrowings
1 Generation a) Ongoing schemes 1,181.21 - 1,181.21 b) BRGF 153.00 153.00 - -
Sub Total 1,334.21 153.00 - 1,181.21
2 Transmission a) BRGF 450.13 450.13 - -
b) Mahatma Gandhi Setu Cable crossing
13.96 - - 13.96
c) Ongoing Scheme 131.26 - - 131.26
Sub Total 595.35 450.13 - 145.22 3 Distribution
a) Ongoing Scheme 595.42 - - 595.42 b) APDRP 68.66 - - 68.66 c) R-APDRP 96.82 - - 96.82
d) BRGF - - - - e) ADB 20.00 - - 20.00 f) PMGY 0.80 - - 0.80 g) MNP 0.50 - - 0.50 h) Tal Diara 1.00 - - 1.00
i) Border Area 0.05 - - 0.05 j) ACA 76.75 - - 76.75 k) RGGVY 315.28 - - 315.28 l) Deposit Work 12.93 - 12.93 -
m) Others works 52.93 - 52.93 -
n) Others Capital works 92.50 - 92.50
Sub Total 1,333.63 - 65.86 1,267.77
Total 3,263.19 603.13 65.86 2,594.20
5.8.6 As in the power projects such as Muzaffarpur Thermal Power Plant (2x195 MW) &
Nabhinagar Super Thermal Power Plant (3 x 660 MW); BSEB is the equity partner
with NTPC for which separate tariff will be determined by the appropriate
Commission, So the Commission has not considered the capital expenditure under
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 129
thses plants for computation of GFA, interest and finance charges and depreciation.
With respect to capacity extension of Barauni TPS (2X250 MW) which is expected to
be commissioned in June 2014, i.e. FY 2014-15, GFA, interest and finance charges
and depreciation has not been considered in FY 2011-12. In light of the above, the
Commission has only considered the capital expenditure of Rs. 153 Cr. for FY 2011-
12 as grant under RSVY scheme for R&M of BTPS, for the purpose of computation
of GFA.
5.8.7 Based on the details provided by BSEB, the Commission considers the following
funding pattern for proposed capital expenditure for computation of allowable interest
based on the percentage described in paragraph 5.8.9 and 5.8.10.
Table 67: Funding pattern considered by Commission during FY 2011-12 (Rs. Cr.) (RE)
Sl. Particular Generation Transmission Distribution Total
1 Capital Expenditure 1,334.21 595.35 1,333.63 3,263.19 2 Grant 153.00 450.13 - 603.13 3 Consumer contribution - - 65.86 65.86 4 Borrowings 1,181.21 145.22 1,267.77 2,594.20
5.8.8 BSEB has proposed significantly high capital expenditure for FY 2011-12, compared
with the capital expenditure incurred by BSEB in past years is considered. However
the Commission for this order has considered the capital expenditure proposed by
BSEB as it has been able to demonstrate that equivalent amount funding is available
for carrying out the proposed capital expenditure.
5.8.9 The capitalization of the above proposed capital expenditure is considered in
accordance with the capitalization schedule given in the table below:
Table 68: Capitalization schedule for proposed capi tal expenditure Sl. Particulars 1st year 2nd year 3rd year 4th year
1 Generation 50% 50% 0% 0%
2 Transmission 25% 30% 30% 15%
3 Distribution 25% 25% 25% 25%
5.8.10 Further for computation of additions to GFA from capitalization of CWIP, the closing
balance of FY 2010-11 and the capitalization rate as given in the table below has
been considered which is in line with the methodology adopted by the Commission in
the Tariff Oreder for FY 2011-12.
Table 69: Capitalization schedule for CWIP Sl. Particulars FY 2011-12 FY 2012-13 FY 2013-14
1 Generation 30% 30% 40%
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Bihar Electricity Regulatory Commission Page 130
Sl. Particulars FY 2011-12 FY 2012-13 FY 2013-14
2 Transmission 30% 30% 40% 3 Distribution 30% 30% 40%
5.8.11 To ascertain function wise asset addition due to capitalization of CWIP, the closing
balance of CWIP reflected in the annual accounts of FY 2010-11 was segregated into
the three functions based on the contribution of these functions to the total GFA at
the end of FY 2010-11.
5.8.12 The addition to the assets from loans, grants and CWIP was computed for FY2011-12.
Table 70: Approved GFA by Commission FY 2011-12 (RE )
Sl. Particulars Generation Transmission Distribution Total
1 Opening GFA (FY 2011-12) 334.28 739.92 2,781.87 3,856.07
2 Addition during the year 109.84 222.64 610.88 943.36
3 Closing GFA (FY 2011-12) 444.12 962.56 3,392.75 4,799.43
5.8.13 The GFA levels as approved by the Commission for FY2011-12 are given in the table below:
Table 71: Approved GFA (Rs. Cr.) by Commission FY 2 011-12 (RE)
Sl. Particulars Closing GFA for FY 2011 -12 as per Tariff Order of FY 2011-12
Closing GFA for FY 2011 -12 (RE) Now approved
1 Generation 563.73 444.12
2 Transmission 1,161.63 962.56
3 Distribution 2,687.73 3,392.75
4 Total 4,413.09 4,799.43
5.9 Depreciation
Petitioner’s Submission
5.9.1 BSEB has computed depreciation for FY 2011-12 by calculating depreciation on
existing assets at weighted average rates of FY 2010- 11. BSEB has not considered
depreciation on assets which are not in use. BSEB has also not considered
depreciation on assets which have depreciated upto 90% of its acquisition cost.
Table 72: Revised estimate of Depreciation charges proposed by BSEB FY 2011-12 (RE) Sl. Particulars FY 2010-11 (Actual) FY 2011-12 (Approved) FY 2011-12 (RE) 1 Generation 2.43 11.13 21.84
2 Transmission 14.57 29.96 22.78 3 Distribution 72.01 76.20 109.59 4 Total 89.00 117.29 154.21
Commission’s View
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 131
5.9.2 The Commission has considered closing balance of GFA as achieved in FY 2010-11
as per the annual accounts of that year. The Commission has thereafter considered
asset additions of Rs. 943.36 Crores for FY 2011-12. This addition is as per the
explanation provided in the earlier paragraph at 5.8.12.
5.9.3 It is noted here that the Clause 17 of Central Electricity Regulatory Commission
(Terms and Conditions of Tariff) Regulations, 2009 specifies that depreciation shall
be calculated annually based on Straight Line Method at rates specified in Appendix -
III of the said regulations. Provided that, the remaining depreciable value as on 31st
March of the year closing after a period of 12 years from date of commercial
operation shall be spread over the balance useful life of the assets.
5.9.4 For existing assets age-wise and asset wise description has not been provided by
BSEB, the Commission has used the weighted average rate of deprecation achieved
in FY 2010-11 for them. For new assets created during FY 2011-12, rates prescribed
by CERC have been applied by the Commission to determine deprecation allowable
for FY 2011-12. Function wise computation of depreciation has been carried out by
the Commission based on projected fixed asset for each function during the FY
2011-12.
5.9.5 Based on approved GFA and additional capitalization computed during FY 2010-11,
the Commission calculated the depreciation for FY 2011-12. However, the
depreciation on the assets created out of consumer contribution, grant has been
deducted from the gross depreciation to arrive at the net depreciation charge for
BSEB. The computation of the depreciation on the assets created out of consumer
contribution, grant is based on the average of ratio of ‘Grant and contribution’ and
‘GFA’ for past three (3) years.
Table 73: Function wise revised Depreciation approv ed for FY 2011-12 (RE) (Rs Cr) Sl. Particulars Generation Transmission Distribution Total
1 Gross Depreciation 5.96 22.23 125.28 153.47
2 Net Depreciation 4.62 17.12 86.68 108.42
5.9.6 The revised depreciation for FY 2011-12 (RE) approved by the Commission is
subject to true-up, as and when the actual depreciation will be submitted by the
Petitioner for FY 2011-12.
Table 74: Approved revised estimate of Depreciation (Rs. Cr.) charges for FY 2011-12 (RE)
Sl. Particulars FY 2011-12 (Approved in Tariff Order of FY
FY 2011-12 (RE) (Projected by BSEB
Now approved for FY 2011-12 (RE)
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 132
2011-12) in revised estimate )
1 Generation 11.13 21.84 4.62 2 Transmission 29.96 22.78 17.12 3 Distribution 76.20 109.59 86.68 4 Total 117.29 154.21 10 8.42
5.10 Interest & Finance Charges
Petitioner’s Submission
5.10.1 For calculation of Interest and Finance charges for FY 2011-12, BSEB has
considered the closing balance of loans of FY 2010-11 used for funding capital
expenditure and the new loans proposed to be drawn during the year as per the
indicated capitalization schedule of the proposed capital expenditure.
5.10.2 Based on the capitalization and its funding pattern, additional loan requirement has
been worked out for FY 2011-12. BSEB has assumed that all additional funding
requirements will be met by the State Government at the rate of 13% per annum.
5.10.3 Total repayment of loans has been considered equal to the depreciation proposed for
the year. Repayment of Loans other than state plan loans is proposed at 10% of the
opening loan amount. The repayment of state plan loans have been considered
equivalent to depreciation amount left after repayment of non-state loans.
5.10.4 For existing loans, prevailing interest rate has been considered while for new loans
interest rate of 13% is proposed. Based on the same, BSEB revises its estimate of
Interest and Finance Charges for FY 2011-12 to Rs. 464.31 Cr. as against Rs.149.01
Cr. approved by the Commission. Function-wise Interest & financial charges
calculated are as shown in table below:
Table 75: Proposed Interest & Financial Charges for FY 2011-12 (RE) Sl. Particulars FY 2010-11 (Actual) FY 2011-12 (Approved) FY 2011-12 (RE) 1 Generation 50.80 25.00 100.89 2 Transmission 49.57 42.00 60.33 3 Distribution 230.12 82.01 303.10 4 Total 330.49 149.01 464.31
Commission’s View
5.10.5 The Commission vide letter no. BERC-Tariff-24/11-88 dated 27th January, 2012
sought details of the loans and the corresponding assets created out of these loans.
Since interest is payable only on loans used for creating usable assets, which have
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Bihar Electricity Regulatory Commission Page 133
been put to use during the year. BSEB could not provide the desired information. The
Commission has excluded loans raised for working capital or to meet revenue deficit
included for interest claimed by BSEB.
5.10.6 In absence of desired information and identification of loans used for creation of
assets, the Commission decided to adopt an indirect methodology to compute
outstanding balance of loans as on 1st April, 2011 used for asset creation. In the
absence of the adequate data with BSEB the Commission has considered the
repayment during the year as per the Central Electricity Regulatory Commission
(Terms and Conditions of Tariff) Regulations, 2009 reproduced as below:
“The repayment for the year of the tariff period 20 09-14 shall be deemed to be
equal to the depreciation allowed for that year”
Closing balance of GFA as on 31st March 2011 (as per annual accounts) provides
the value of assets created out of all possible sources of funding. If from this balance
all the assets created from consumer contribution and grants are excluded then the
balance assets have been funded from the loans raised till date.
5.10.7 Further if the accumulated depreciation as on date is excluded then balance will be
the assets funded out of existing loans. The accumulated depreciation can be
considered as proxy for the loans repaid till date. The Commission has used this
concept to compute opening level of loan as on 1st April, 2011 used for the creation
of fixed assets. The Commission considers this approach reasonable in the absence
of supporting evidence of utilization of loans for asset creation and its usability in
business. However, Commission may revisit this computation on getting the actual
details from BSEB at the time of true-up based on audited accounts of FY 2011-12.
5.10.8 The additional loan to the extent of asset capitalized during the year can only be
considered for interest cost computation. Interest cost on remaining loan amount
should be capitalized and considered as part of capital cost of the asset. This is in
accordance with the BERC (Terms and condition for determination of Tariff)
Regulation, 2007, which provides for interest only on assets which are capitalized
and not on the entire capital expenditure incurred during the year.
5.10.9 Assets capitalized during the year can be funded through grant, consumer
contribution and borrowing. Interest is payable on loans equivalent to capitalized
assets funded through borrowings only. To determine this additional loan the
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Bihar Electricity Regulatory Commission Page 134
proposed capitalization is segregated in the ratio of existing levels of grant, consumer
contribution and borrowings.
5.10.10 The approved depreciation during the year is used as the repayment amount during
the year.
5.10.11 Interest rate of 13% as proposed by BSEB has been verified from the sanction letters
issued by the State Government and the proposed rate was found in line with the
interest rate charged by the State Government. The Commission has computed the
interest and finance charges for each function on the basis of the loan availed by the
Board for the respective function.
5.10.12 The repayement of the loan during the tyear has been computed at 10% of the
outstanding loan at the beginning of the year as per the methodology adopted in
Tariff order for FY 2011-12.
5.10.13 The Commission has considered the closing balance of loan for FY 2010-11 (as per
true-up Order) as the opening loan for FY 2011-12 and has computed the interest on
loan for FY 2011-12 (RE). the Commission has computed the interest on loan as per
the methodology adopted in Tariff order for FY 2011-12, Based on the above, interest
on loan for FY 2011-12 (RE) as approved by Commission based on capitalization
considered during the year is given in the table below:
Table 76: Approved revised estimate of Interest & F inance Charges for FY 2011-12 (RE) (Rs Cr)
Sl. Particulars FY 2011-12 (Approved in Tariff Order of FY 2011-12)
Now approved for FY 2011-12 (RE)
1 Opening Loan 775.00 471.49 2 Addition of Loan 742.40 558.99 3 Repayment of Loan 77.50 47.15 4 Closing Loan 1439.90 983.33 5 Interest rate 13% 13.00% 6 Interest on Loan 149.01 94.56
5.10.14 Based on the interest finance charges of FY 2010-11 as per audited annual accounts
of BSEB, the interest cost for Generation, Transmission and Distribution business of
BSEB has been worked out for FY 2011-12.
5.10.15 The interest and finance charges for FY 2011-12 as approved in Tariff Order for FY
2011-12, revised estimate for FY 2011-12 and now approved by Commission for FY
2011-12 (RE) is shown in table below.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 135
Table 77: Approved revised estimate for Interest & Financial Charges for FY 2011-12 (RE)
Sl. Particulars FY 2011-12
(Approved in Tariff Order of FY 2011-12)
FY 2011-12 (RE) (Projected by BSEB in
revised estimate )
Now approved for FY 2011-12 (RE)
1 Generation 25.00 100.89 20.35 2 Transmission 42.00 60.33 14.18 3 Distribution 82.01 303.10 60.03 4 Total 149.01 464.31 94.56
5.10.16 The revised interest and finance charges for FY 2011-12 (RE) approved by the
Commission is subject to true-up, as and when the actual interest and finance
charges will be submitted by the Petitioner for FY 2011-12.
5.11 Interest on Working Capital
Petitioner’s Submission
5.11.1 BSEB has proposed interest on working capital in accordance with the applicable
regulations notified by the Commission. The considerations for computing working
capital requirement and interest thereon are summarized in the table below for each
of the functions of BSEB.
Table 78: Methodology adopted by BSEB for calculati on of Working Capital
Description Generation Transmission Distribution
Norms for calculation
Thermal WC = 2 months cost of coal + 2 months cost of secondary fuel oil + Maintenance spares (at 1% of GFA escalated at 6 % per annum) + 1 month O&M + Receivables (2 months of fixed and variable charges).
WC = Maintenance spares ((at 1% of GFA escalated at 6 % per annum) + Receivables (2 months of transmission charges) + 1 month O&M
WC=1 month O&M + Maintenance spares (at 1% of GFA escalated at 6 % per annum) + 2 months revenue
Reference BERC (Terms and conditions for determination of Tariff) Regulations, 2007.
5.11.2 BSEB has proposed short-term prime lending rate of SBI as on 01/04/2011 i.e.
13.00% for computing interest on working capital. The BSEB has proposed interest
on working capital at Rs. 163.31 Cr. for FY 2011-12.
Table 79: Proposed revised estimates of Interest on Working Capital for FY 2011-12 (RE) (Rs Cr) Particulars Generation Transmission Distribution Total 2 month primary fuel & secondary fuel 93 - - 93
1 month O&M 5 10 67 82 Receivables 53 45 944 1,042 Maintenance Spares 3 7 28 38
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 136
Particulars Generation Transmission Distribution Total Total WC Requirement 155 62 1,039 1,256
Interest Rate (SBI PLR as on Apr’11) 13.00% 13.00% 13.00% 13.00% Interest on Working Capital 20.13 8.12 135.06 163.31
Commission’s View
5.11.3 The Commission is of the view that, since the working of BSEB is still as an
integrated unit, the Commission has not considered receivables for Generation and
transmission function.
5.11.4 Interest on working capital is computed on normative basis as per BERC (Terms and
conditions for determination of Tariff) Regulations, 2007. SBI PLR rate of 13% as on
1st April, 2011 has been considered for calculation of interest for funding working
requirement. Based on the same, Commission approves revised estimate of interest
on working capital for FY 2011-12 (RE) as given in the table below:
Table 80: Approved function wise Revised estimate o f Interest on Working Capital for FY 2011-12 (RE) (Rs Cr)
Particulars Generation Transmission Distribution Total
2 month primary fuel & secondary fuel 10.9 - - 10.9
1 month O&M 3.8 7.8 55.7 67.3
Two (2) months Receivables - - 691.2 691.2 Maintenance Spares (1% of GFA escalated at 6% per annum) 8.7 9.6 18.6 36.9
Total WC Requirement 23.5 17.4 765.4 806.3
Interest Rate (SBI PLR as on Apr’11) 13% 13% 13% 13%
Interest on Working Capital 3.1 2.3 99.5 104.82
Table 81: Approved revised estimate of interest on working capital for FY 2011-12 (RE) (Rs. Cr.)
Particular
FY 2011-12 (Approved in
Tariff Order of FY 2011-12)
FY 2011-12 (RE) (Projected by
BSEB in revised estimate )
Now approved for FY 2011-12
(RE)
2 month primary fuel & secondary fuel 13.41 93 10.9
1 month O&M 78.75 82 67.3
Receivables 535.43 1,042 691.2
Maintenance Spares 33.42 38 36.9
Total WC Requirement 661.01 1,256 806.3
Interest Rate (SBI PLR as on Apr’11) 13% 13.00% 13%
Interest on Working Capital 85.93 163.31 104.82
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 137
5.11.5 The revised estimate of interest on working capital for FY 2011-12 (RE) approved by
the Commission is subject to true-up, as and when the audited accounts of the Board
will be submitted by the Petitioner for FY 2011-12.
5.12 Non-Tariff Income
Petitioner’s submission
5.12.1 BSEB has projected non-tariff income of Rs. 48.54 Cr. for FY 2011-12. BSEB has
mainly considered 3 year CAGR to project non-tariff income for FY 2011-12 based on
the actual non-tariff income of FY 2010-11.
5.12.2 BSEB has also requested the Commission not to consider any income from DPS as
it is a source for funding increased working capital requirement and also requested
the Commission not to consider income from interest on un-utilized funds while
determining ARR for FY 2011-12.
5.12.3 The detailed break-up of non-tariff income claimed by the Petitioner is as below:
Table 82: Break-up of proposed non-tariff income fo r FY 2011-12 (RE) (Rs. Cr.)
Sl. Particulars FY 2011-12 (Approved) FY 2011-12 (RE)
1 Meter/Service rent 25.00 22.38
2 Late payment surcharge 38.24 -
3 Theft / pilferage of energy 10.00 -
4 Misc. receipts 2.79 4.07
5 Misc. charges (except PLEC) 10.55 16.32
6 Wheeling charges - -
7 Interest on staff loans & advance 0.01 0.05
8 Income from trading 1.02 1.05
9 Income from welfare activities - -
10 Rental Tender Registration - -
11 Interest of Bank Deposit 53.48 -
12 Rebate & discount received 26.06 3.06
13 Incentive for timely payment against loan to PFC 1.08 0.44
15 Incentive for timely payment against loan to PFC - 1.16
17 Total Income 168.23 48.54
18 Add Prior period income - -
19 Total Non-tariff income 168.23 48.54
Commission’s analysis
5.12.4 The Commission agrees with the methodology adopted by BSEB to compute non-
tariff income. At the same time, the Commission feels that it is necessary to adjust
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 138
some components of non-tariff income based on recent developments in the sector
which do appropriately reflect the past trend. Also, the Commission has allocated
entire non-tariff income to the distribution function on BSEB.
5.12.5 The Commission has approved the meter rent, Interest on Staff Loan & Advance,
and Misc. charges from consumers for FY 2011-12 based on the three (3) years
CAGR based on actual value for FY 2010-11. The Commission has considered the
Interest of bank Deposit as per approved value of Tariff Order for FY 2011-12. For
other components of Non-tariff income, the Commission has considered the actual
value of FY 2010-11 as per annual accounts.
5.12.6 The Commission has adopted the approach for DPS as a part of Non-tariff income in
line with the recent judgement of Hon’ble Appellate Tribunal for Electricity (APTEL)
dt. 12.07.2011 in Case no 142 & 147 of 2009.
5.12.7 The relevant extracts of the Judgment are reproduced below:
“The normative working capital compensates the distribution company in delay for
the 2 months credit period which is given to the consumers. The late payment
surcharge is only if the delay is more than the normative credit period. For the period
of delay beyond normative period, the distribution company has to be compensated
with the cost of such additional financing. It is not the case of the Appellant that the
late payment surcharge should not be treated as a non-tariff income. The Appellant is
only praying that the financing cost is involved due to late payment and as such the
Appellant is entitled to the compensation to incur such additional financing cost.
Therefore, the financing cost of outstanding dues, i.e. the entire principal amount,
should be allowed and it should not be limited to late payment surcharge amount
alone. Further, the interest rate which is fixed as 9% is not the prevalent market
Lending Rate due to increase in Prime Lending Rate since 2004-05. Therefore, the
State Commission is directed to rectify its computation of the financing cost relating
to the late payment surcharge for the FY 2007-08 at the prevalent market lending
rate during that period keeping in view the prevailing Prime Lending Rate”.
5.12.8 The Commission has computed DPS of Rs. 27.38 Cr.for FY 2011-12 based on the
three (3) years CAGR applied on the actual value for FY 2010-11. As the Petitioner
charges DPS @ 18% per annum (1.5% per month), the principal amount on which
DPS would be charged comes as Rs.152.14 Cr.
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Bihar Electricity Regulatory Commission Page 139
5.12.9 As prevailing SBI PLR as on April 1, 2011 was 13%, the Commission has allowed the
financing cost for DPS @ 13%. The financing cost approved by the Commission is
shown below:
Table 83: Funding of DPS (Rs. Cr.) Particular FY 2011-12
DPS as per projections (@ 1.5% per month) (A) 27.38
Principal amount on which DPS was charged (B = A / 18%) 152.14
Interest Rate for funding of Principal of DPS 13.00%
Interest on funding of Principal amount of DPS 19.78
5.12.10 The Commission has sought additional information vide its letter No. BERC-Tariff-
24/11-272 dated 23.03.2012 seeking information on actual DPS collected by the
Board. However, the Board has replied vide letter no. Com/ tariff-161/11-488 dated
23.03.2012 saying that the same is not available as of now and shall be made
available only once the IT based billing system is implemented under the ongoing R-
APRDRP Scheme.
5.12.11 The Commission is not satisfied with the justification given by the Board for not
maintaining records for actual revenue receipts against DPS. The Commission
directs the Board to submit the same as per actuals in its subsequent filings/ true-up
petitions, in the absence of which the Commission shall be constrained to consider
100% DPS as non-tariff income for the purpose of calculation of the ARR.
5.12.12 The Commission has computed the amount of Non-Tariff Income as summarised
below:
Table 84: Approved revised estimate of Non-Tariff I ncome FY 2011-12 (RE) (Rs. Cr.)
Particular
FY 2011-12 (Approved in Tariff Order of FY 2011-
12)
FY 2011-12 (RE)
(Projected by BSEB in revised
estimate )
Now approved
for FY 2011-12
(RE)
Meter/Service rent 25 22.38 21.94
Late payment surcharge (DPS) 38.24 - 27.38
Theft / pilferage of energy 10 -
Misc. receipts 2.79 4.07 18.62
Misc. charges (except PLEC) 10.55 16.32 -
Wheeling charges - - -
Interest on staff loans & advance 0.01 0.05 0.04
Income from trading 1.02 1.05 1.05
Income from welfare activities - - -
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Bihar Electricity Regulatory Commission Page 140
Particular
FY 2011-12 (Approved in Tariff Order of FY 2011-
12)
FY 2011-12 (RE)
(Projected by BSEB in revised
estimate )
Now approved
for FY 2011-12
(RE)
Rental Tender Registration - -
Interest of Bank Deposit 53.48 - 53.48
Rebate & discount received 26.06 3.06 17.93
Incentive for timely payment against loan to PFC 1.08 0.45 0.45
Incentive for timely payment of power purchase bills - 1.16 1.16
Total Non-Tariff Income 168.23 48.54 142.05
Less: Financing cost of Principal amount of D.P.S. - - 19.78
Net Non-Tariff Income - - 122.28
5.12.13 The revised estimate of Non-tariff income for FY 2011-12 (RE) approved by the
Commission is subject to true-up, as and when the audited accounts of the Board will
be submitted by the Petitioner for FY 2011-12.
5.13 Return on Equity
Petitioner’s submission
5.13.1 BSEB has submitted that its asset are funded through loans and grants from the
Government of Bihar, loans and grants under specialized funding schemes of the
Government of India and loans from commercial lending organizations.
5.13.2 BSEB has also submitted that the in states like Jharkhand, Punjab, Chhattisgarh and
Kerala, where integrated Boards like BSEB were / are operational, the appropriate
Commissions have allowed / allow for a reasonable return on equity despite the fact
they have capital structure which is very much similar to that of BSEB and are mainly
funded through loans/ grants from respective State Governments.
5.13.3 BSEB has requested for the reasonable return of 14% on normative equity of 30% of
the Gross Fixed Assets (net off capital grants/ subsidies) in the ARR for the year
2011-12 of Rs. 231 Cr.
Commission’s analysis
5.13.4 Return is admissible only on equity actually deployed for the creation of assets.
Since, BSEB has not been corporatized; it does not have any equity. The
Commission has considered entire assets base funded through loan and accordingly
interest has been allowed. Therefore, no return is payable on notional equity.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 141
5.14 Revenue from Sale of Power at Existing Tariff for FY 2011-12
BSEB’s Submission
5.14.1 The Petitioner in its tariff petition for FY 2012-13 has only submitted the revised
estimates of the expenses for FY 2011-12 but has not given any details of the
revenue from sources such as revenue from sales of power, revenue from additional
sales as well as revenue billed through FPPCA. On the query of the Commission,
BSEB in the additional information submitted vide letter no. Com/ tar-132/ 2011-375
dated 1st March 2012 informed the Commission that the actual data for the period of
April, 2011 to November, 2011 is not available as annual accounts are not yet
finalized.
Commission’s analysis
5.14.2 In the absence of desired information, the Commission has computed the revenue
based on revised sales and approved category-wise average realisation rate for FY
2011-12.
Table 85: Approved revised estimate of revenue thro ugh sale of power for FY 2011-12 (RE)
Category
FY 2011-12 (Approved
Revenue as per Tariff Order)
(Rs. Cr.)
Approved by Commission in revised estimate for FY 2011-12 (RE)
Energy Sale (MU)
Average Realisation (Rs./Unit)
Revenue (Rs. Cr.)
Kutir Jyoti (Rural) 39.92 323 2.37 76.65
Kutir Jyoti (Urban) 0.40 1 1.8 0.23
DS‐I (Rural) 104.07 925 1.88 173.87
DS‐II -
Single phase 364.35 1,201 3.34 401.26
Three phase 26.07 16 3.45 5.54
NDS‐I (Rural) 4.29 21 2.5 5.15
NDS‐II (Urban)
Single phase 206.28 317 6.69 211.83
Three phase 129.63 190 7.1 134.88
NDS‐III 2.02 16 3.66 5.76
LTIS‐I 100.65 162 5.51 89.31
LTIS‐II 38.80 104 6.12 63.91
Public Water Works 50.50 60 4.22 25.48
IAS‐I (Private) 28.54 272 1.3 35.31
IAS‐II (Government) 26.95 167 2.44 40.75
Street Light‐I (Metered) 1.32 6 4.03 2.26
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 142
Category
FY 2011-12 (Approved
Revenue as per Tariff Order)
(Rs. Cr.)
Approved by Commission in revised estimate for FY 2011-12 (RE)
Energy Sale (MU)
Average Realisation (Rs./Unit)
Revenue (Rs. Cr.)
Street Light‐II (Unmetered) 8.63 28 3.45 9.51
HTSS‐I 454.96 799 5.59 446.40
HTSS‐II 135.62 351 5.37 188.71
HTSS‐III 49.60 125 5.15 64.61
HTSS 308.22 277 3.77 104.38
RTS‐I 239.51 567 5.29 299.88
Grand Total 2319.95 5,928 2,386
5.14.3 The Commission has approved the revenue at existing tariffs as per the revised
estimate of approved sales and the approved average realisation for FY 2011-12.
The revenue at existing tariff is computed at Rs 2,386 Cr.
5.15 Revenue from sale to Nepal & UI
BSEB’s Submission
5.15.1 BSEB has sold 555 MU of energy to Nepal at rate of Rs. 4.66 per kWh in FY 2010-
11. BSEB projected the same trend to continue for FY 2011-12. BSEB has projected
revenue from sale of power to NEA for FY 2011-12 at Rs. 258.63 Cr..
5.15.2 BSEB has projected that sale under UI for the FY 2011-12 will be same as that of FY
2010-11. BSEB has projected its revenue from sale of power under UI assuming
average price of Rs. 3.09 per unit equal to the rate for FY 2010-11. Revenue from
sale of power under UI for FY 2011-12 is projected at Rs. 90.54 Cr..
Commission’s analysis
5.15.3 The Commission approves the projected sales to Nepal at 555 MU, as it is obligatory
to supply power to Nepal and accordingly approves projected revenue from sale of
power to NEA for FY 2011-12 at Rs. 258.63 Cr.
5.15.4 The Board has projected the energy sales of 293 MUs under un-scheduled
interchange (UI)] for the FY 2011-12. The Commission is of the view that, as per the
energy balance the Board is left with additional power to the extent of 2200 MUs.
BSEB has submitted that, the BSEB shall supply 171 MUs additional power to towns
where premium tariff is proposed, industrial categories on LT line, urban areas, PWW
and Street Lights. Accordingly, the Commission approves 171 MUs for sale under UI
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 143
as prima facia it seems that it will not impact the supply hour of existing and
proposed consumer base of BSEB. Accordingly, the Commission approves the
proposed sale under UI for the FY 2011-12 @ Rs. 3.49 per unit, which is the average
cost of power purchase for an amount of Rs. 102.36 Cr.
5.16 Revenue from sale of Additional Power
BSEB’s Submission
5.16.1 The Petitioner has not projected any revenue from sale of additional power in FY
2011-12.
Commission’s analysis
5.16.2 BSEB has projected energy balance at the projected T&D loss level of 42%. The
Commission has already given T&D loss target of 29% to BSEB for the FY 2011-12
in its Tariff Order for FY 2011-12 dated 1st June, 2011. For FY 2011-12 (RE), the
Commission has worked out energy balance based on T&D loss level of 29% as
against 42% projected by BSEB. Also, in the energy balance, BSEB is proposing
availability of 171 MUs of additional power in BSEB system for sale. The Board has
proposed to sell this additional power @ Average Energy realisaiton rate of LT
consumers (excluding KJ and agriculture). Considering the supply shortage situation
in the State, the Commission is of the opinion that BSEB can sell higher amount of
energy and to that extent it can bill higher revenue.
Table 86: Additional Revenue for the FY 2011-12 (RE )
Particular Unit FY 2011-12 Approved by Commission
Energy available for sale to Consumers MU 171
Average Energy realisaiton rate (excluding KJ & agriculture) Rs./Unit 3.17
Additional revenue at existing tariff Rs. Cr. 54.23
5.17 Disincentive for non-achievement of T&D loss r eduction Targets
5.17.1 The difference in the actual power purchase and the power purchase requirement
approved by the Commission is disallowed at the average power purchase rate and
is treated as ‘Disincentive for non-achievement of T&D loss targets’.
5.17.2 As per the trajectory, the T&D loss reduction target for FY 2011-12 was set at 29%
which the Petitioner has not achieved as per the review petition of BSEB.
Accordingly, the Commission has computed the disincentive for non-achievement of
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 144
T&D loss reduction targets at Rs. 841.70 Cr. for FY 2011-12, subject to true-up, as
and when the audited accounts of the Board will be submitted by the Petitioner for FY
2011-12.
Table 87: Disincentive for non-achievement of T&D l oss reduction target for FY 2009-10
Particular Units FY 2011-12
Net Power Purchase Dis-allowed MUs 2,210.05
Disallowed units of NVVNL MUs 1,303.56
Disallowed power purchased cost of NVVNL @ 4.09 per unit Rs./ kWh 4.09
Cost of Power Purchase Dis-allowed (NVVNL) Rs. Cr. 532.56
Balance units of disallowed power MUs 906.49
Average Power purchase cost except NVVNL MUs 3.41
Cost of power purchase dis-allowed (other sources) Rs. Cr. 309.14
Total dis-allowed power purchase cost Rs. Cr. 841.70
5.18 Resource gap funding received from State Gover nment for FY 2011-12
5.18.1 In response to Commission’s query vide letter No. BERC- Tariff-24/ 11-244 dated
15th March 2012 regarding resource gap funding support from State Govt. for FY
2011-12 the BSEB vide letter No Com/ tariff-161/ 2011 (part) – 444 dated 16th March
2012 informed the Commission that the projected resource gap funding support for
FY 2011-12 from State Government is Rs. 1800 Cr.
5.18.2 The details of month-wise resource gap funding received from State Government
during FY 2011-12 till February, 2012 as submitted by BSEB is as below:
Table 88: Details of Resource gap funding from Stat e Government (Rs. Cr.)
Sl. Particular Resource Gap
Compensation against financial loss due to
procurement of additional power
Total
2 April, 2011 90.00 - 90.00
3 May, 2011 90.00 - 90.00
4 June, 2011 90.00 - 90.00
5 July, 2011 90.00 - 90.00
6 August,2011 180.00 - 180.00
7 September, 2011 180.00 130.00 310.00 8 October, 2011 180.00 - 180.00
9 November, 2011 180.00 - 180.00 10 December, 2011 180.00 380.00 560.00 11 January, 2011 180.00 - 180.00
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 145
Sl. Particular Resource Gap
Compensation against financial loss due to
procurement of additional power
Total
11 February, 2011 180.00 - 180.75
14 March, 2011 (Expected) 180.00 - -
15 Total 1800.00 510 2310
5.18.3 The BSEB in additional information has submitted that it has received resource gap
assistance amounting to Rs. 1800 Cr. and Rs. 510 Cr. as compensation against
financial loss due to procurement of additional power by the State Government. Out
of 2310 Cr.; Rs 1080 is treated as resource gap grant for reducing ARR gap as
approved in the Tariff Order for FY 2011-12. Rs. 841.70 Cr. of the State Government
grant is adjusted against the financial loss caused to BSEB due to higher T&D loss
than the T&D loss approved by Commission. The balance amount of Rs. 388.30 ( =
2300 – 1080 – 841.70) out of the total State Government grant is the additional
revenue available with BSEB which is shown as receipt in the ARR. The amount of
Rs. 841.70 Cr. against financial loss to BSEB includes all kinds of losses to BSEB
such as additional power purchse, Non-achievement of T&D loss trajectory set bt the
Commission, loss on account of power purchase from NVVNL.
Table 89: details of State Government revenue gap s upport (Rs. Cr.)
Particular Amount (Rs. Cr.)
Resource gap from State Government 1,800.00
Compensation against financial loss due to procurement of additional power 510.00
Total Resource gap funding spport fro State Government for FY 2011-12 2,310.00 Less: Resource gap grant for reducing ARR gap as per Tariff Order for FY 2011-12
1,080.00
Less: Dis-allowed power purchase cost on account of high T&D losses w.r.t. BERC target
841.70
Resource gap available with BSEB 388.30
5.19 Aggregate Revenue Requirement of BSEB for FY 2 011-12
5.19.1 The table below summarises the revised estimate of ARR approved by the
Commission for FY 2011-12 subject to final true-up as and when the audited
accounts of the Board will be submitted by the Petitioner for FY 2011-12:
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 146
Table 90: Aggregate Revenue Requirement for the FY 2011-12
Sl. Particular
FY 2011-12 (Approved
in tariff Order)
FY 2011-12
(Revised Estimate)
Now approved
for FY 2011-12
(RE) 1 Power Purchase Cost 3,328.00 4,162.94 4,156.89
2 Fuel 80 93.48 72.04
3 R&M Cost 95 100.62 100.62
4 Employee Cost 798 829.8 641.41
5 A&G Cost 52 53.49 70.72
6 Depreciation 117 154.21 108.42
7 Interest & Financial Charges 149 464.31 94.56
8 Interest on Working Capital 86 163.31 104.82
9 Return on Equity - 231.47 -
10 Total Revenue Requirement 4,705.00 6,253.63 5,349.47
11 Less: Non-Tariff Income 168 48.54 122.28
12 Less : Disallowable Power Purchase Cost - 754.26 841.70
13 Net Revenue Requirement 4,537.00 5,450.83 4,385.49
14 Less: Revenue from existing tariff 2,769.00 - 2,385.69
15 Less: Revenue from sale of power to Nepal 224 258.63 258.63
16 Less: Revenue from sale of power in UI - 90.54 102.36
17 Less: Revenue from sale of addl. Power 220 54.23 54.23
18 Less: Revenue through FPPCA - - 790.91 *
19 Gap 1,325.00 - 793.67
20 Less: Resource gap grant for reducing ARR as per T.O. for FY 2011-12
1,080.00 - 1,080.00
21 Less: Additional resource gap available with BSEB 388.30
22 Net Gap/ (Resource) 245.00 (674.63) * As per FPPCA order & provisional billing by BSEB against FPPCA for period from October’ 2009 to
December’ 2011
5.19.2 The Commission approves the net revenue surplus of Rs 674.6 Cr for FY 2011-12 in
revised estimate subject to final true-up as and when the audited accounts of the
Board will be submitted by the Petitioner for FY 2011-12. From the above table it can
be seen that after considering the resource gap assistance amounting to Rs. 1080
Cr. by the State Government, over and above the State Government support for
financial loss on account of non-achievement T&D loss target as set by the
Commission, the net revenue surplus approved by the Commission for FY 2011-12 is
Rs. 674.6 Cr. as against the regulatory assets created by the Commission in the
Tariff Order for FY 2011-12.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 147
6 Analysis of Aggregate Revenue Requirement for FY 2012-13
6.1 Background
6.1.1 This chapter covers item-wise Petitioner’s submission and Commission’s analysis on
the ARR and tariff petition for FY 2012-13. To determine the ARR of the BSEB for FY
2012-13, the Commission has projected the power purchase requirement of the
Petitioner on estimated category wise sales based on past trends and taking into
account the normative distribution losses fixed for FY 2012-13 by the Commission.
The power purchase cost of the Petitioner for FY 2012-13 has been arrived at on the
basis of actual purchase cost from April, 2011 to January, 2011. The Commission
thereafter, analysed the other elements of ARR such as Depreciation, O&M
expenses, Interest and Finance Charges and Working Capital requirement etc. to
reflect the total ARR of the Petitioner for FY 2012-13. For this purpose, the
Commission has examined the original as well as subsequent submissions of the
Petitioner including audited accounts of FY 2010-11. The Petitioner‘s submissions
and Commission‘s approach towards determination of different elements of the ARR
is discussed in detail in the subsequent paras of this Chapter.
6.1.2 The Commission validated the information submitted by BSEB in its ARR and tariff
petition. The Commission held a Technical Validation Sessions (TVS) with the
Officers and Consultants of BSEB from 28th February, 2012 to 1st March, 2012.
During the validation session the Commission pointed out inconsistencies in data
related to energy sales. In the petition, BSEB did not explain the methodology for
break-up of category and sub-category wise sales into the different consumer sub-
categories. The Commission sought clarification in this regard, although the BSEB
could not explain the methodology during the Technical Validation Sessions (TVS).
6.2 Energy Sales
Petitioner’s Submission
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 148
6.2.1 BSEB has used consumer category wise trend analysis Cummulative Annual Growth
Rate (CAGR) to estimate number of consumers, connected load and energy
consumption. This is based on the assumption that the historical trend would
continue into the future as well. However, BSEB has used different CAGR for
different consumer categories and also different CAGR for projecting number of
consumers, connected load and energy sales for a consumer category/subcategory.
6.2.2 The Board has not furnished the basis on which the category-wise Number of
consumers, connected load and sales for FY 2012-13 has been projected. The Board
has however furnished the actual energy sales for the period of FY 2005-06 to FY
2010-11 and estimated consumption for the FY 2012-13 in its ARR and tariff petition.
6.2.3 BSEB has submitted consumer category wise past energy sales, number of
consumers and connected load and their respective CAGR for different periods (five-
year, four-year, three-year, two-year and year-on-year) for projecting sales for FY
2012-13. However, the Board did not submit the energy sales information for
estimating sub-category wise revenue as per the existing tariff schedule. The
Commission expects improved information support from BSEB in this regard in future
tariff petitions. BSEB should improve its collection and analysis of information related
to metering, billing and collection.
Commission’s Analysis
6.2.4 The Commission has projected the energy sales for FY 2012-13 using the method
adopted by the Petitioner by applying compound annual growth rate (CAGR) for all
consumer categories after considering actual sales of FY 2010-11 as base value.
However, the Commission has also used the approved sales norms, trends of
specific consumption (for categories which have stable specific consumption and
follows current business environment) for projecting sales of the consumer
categories. The approach adopted by the Commission for different consumer
category has been elaborated in respective sections.
6.2.5 The Commission vide letter No BERC-Tariff-24/ 2011-244 dated 15th March, 2012
enquired about the basis of segregating number of consumers, connected load, and
unit sales in subcategory of DS1, DS2, NDS1, NDS2. The BSEB vide letter No Com/
Tariff-161/ 2011 (part)- 444 dated 16th March 2012 stated that the Board has shown
no. of consumers, connected load and unit sales in sub-categories of DS-I, DS-II,
NDS-I and NDS-II based on the revenue Statement – I received from field office on
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Bihar Electricity Regulatory Commission Page 149
the basis of consumer’s ledger. However, the Board has not made available the
same to the Commission for scrutiny and analysis.
6.2.6 Category-wise break up of past energy sales and CAGR for different periods (five-
year, four-year, three-year, two-year and year-on-year) as submitted by BSEB is
given below:
Table 91: Historical Trend in category-wise units s old (MUs) Consumer Category FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-09 FY 2009-10 FY 2010-11
Kutir Jyoti 86.52 86.52 54.00 91.18 92.41 163.91
Domestic 1,217.37 1,363.93 1,645.98 1,677.53 1,872.32 1,969.25
Commercial 313.33 309.19 371.85 416.92 470.19 490.37
Public Lighting 19.86 25.18 23.90 22.69 26.99 33.17
IAS 887.48 709.14 659.12 776.72 794.01 388.60
PWW 178.24 163.90 150.98 160.93 143.49 60.39
Industrial L.T. 112.55 111.17 139.02 152.72 192.45 226.49
Industrial H.T. 673.51 762.08 964.14 1,275.40 1,475.09 1,500.63
Railway 358.76 383.92 384.80 399.81 444.82 457.95
Inter State 494.32 626.65 457.77 350.74 555.45 848.38
Total 4,341.94 4,541.68 4,851.56 5,324.64 6,067.22 6,139.14
Table 92: Category-wise growth rates of sales Consumer Category 1-Yr CAGR 2-Yr CAGR 3-Yr CAGR 4-Yr CAGR 5-Yr CAGR
Kutir Jyoti 77.4% 34.1% 44.8% 17.3% 13.6%
Domestic 5.2% 8.3% 6.2% 9.6% 10.1%
Commercial 4.3% 8.5% 9.7% 12.2% 9.4%
Public Lighting 22.9% 20.9% 11.5% 7.1% 10.8%
Irrigation & Agriculture -51.1% -29.3% -16.1% -14.0% -15.2%
Public Water Works -57.9% -38.7% -26.3% -22.1% -19.5%
Industrial L.T. 17.7% 21.8% 17.7% 19.5% 15.0%
Industrial H.T. 1.7% 8.5% 15.9% 18.5% 17.4%
Railway 3.0% 7.0% 6.0% 4.5% 5.0%
Inter State 52.7% 55.5% 22.8% 7.9% 11.4%
Total 1.2% 7.4% 8.2% 7.8% 7.2%
6.2.7 Category-wise break up of past data of no. of Consumers and CAGR for different
periods (five-year, four-year, three-year, two-year and year-on-year) as submitted by
BSEB is as given table below:
Table 93: Category-wise no. of consumers Consumer Category FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-09 FY 2009-10 FY 2010-11
Kutir Jyoti 240,349 240,349 248,293 258,221 319,244 579,852
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 150
Consumer Category FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-09 FY 2009-10 FY 2010-11
Domestic 1,038,658 1,386,639 1,513,675 1,671,636 1,797,404 1,938,023
Commercial 138,166 146,847 158,646 167,422 190,089 195,145
Public Lighting 342 379 341 359 379 306
IAS 57,581 57,581 55,762 51,442 59,121 54,709
PWW 647 689 762 818 768 923
Industrial L.T. 10,718 11,647 12,933 13,821 18,917 17,144
Industrial H.T. 667 699 763 870 929 915
Railway 13 13 15 15 15 15
Inter State 1 1 1 1 1 1
Total 1,487,142 1,844,844 1,991,191 2,164,605 2,386,867 2,787,033
Table 94: Category-wise growth rates of no. of Cons umers
Consumer Category 1-Yr CAGR 2-Yr CAGR 3-Yr CAGR 4-Yr CAGR 5-Yr CAGR
Kutir Jyoti 81.6% 49.9% 32.7% 24.6% 19.3%
Domestic 7.8% 7.7% 8.6% 8.7% 13.3%
Commercial 2.7% 8.0% 7.1% 7.4% 7.1%
Public Lighting -19.3% -7.7% -3.5% -5.2% -2.2%
Irrigation & Agriculture -7.5% 3.1% -0.6% -1.3% -1.0%
Public Water Works 20.2% 6.2% 6.6% 7.6% 7.4%
Industrial L.T. -9.4% 11.4% 9.9% 10.1% 9.8%
Industrial H.T. -1.5% 2.6% 6.2% 7.0% 6.5%
Railway 0.0% 0.0% 0.0% 3.6% 2.9%
Inter State 0.0% 0.0% 0.0% 0.0% 0.0%
Total 16.8% 13.5% 11.9% 10.9% 13.4%
6.2.8 Category-wise break up of past data of connected load and CAGR for different
periods (five-year, four-year, three-year, two-year and year-on-year) as submitted by
BSEB is as given below:
Table 95: Category-wise connected load Consumer Category FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-09 FY 2009-10 FY 2010-11
Kutir Jyoti 14,507 14,507 15,003 14,807 19,416 34,934
Domestic 1,411,332 1,411,332 1,526,959 1,729,924 1,996,915 2,228,984
Commercial 238,543 238,543 270,641 305,971 373,932 434,253
Public Lighting 5,840 5,840 4,990 4,202 4,586 5,636
IAS 247,003 247,003 229,933 206,475 209,719 215,234
PWW 18,726 18,726 19,862 21,385 17,093 18,741
Industrial L.T. 115,059 115,059 126,276 134,812 162,297 176,872
Industrial H.T. 251,991 251,991 288,460 317,336 333,413 348,353
Railway 99,000 99,000 102,150 103,000 102,150 102,150
Total 2,402,001 2,402,001 2,584,274 2,837,912 3,219,521 3,565,157
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 151
Table 96: Category ‐‐‐‐wise growth rates of connected load Consumer Category 1-Yr CAGR 2-Yr CAGR 3-Yr CAGR 4-Yr CAGR 5-Yr CAGR
Kutir Jyoti 79.9% 53.6% 32.5% 24.6% 19.2%
Domestic 11.6% 13.5% 13.4% 12.1% 9.6%
Commercial 16.1% 19.1% 17.1% 16.2% 12.7%
Public Lighting 22.9% 15.8% 4.1% -0.9% -0.7%
Irrigation & Agriculture 2.6% 2.1% -2.2% -3.4% -2.7%
Public Water Works 9.6% -6.4% -1.9% 0.0% 0.0%
Industrial L.T. 9.0% 14.5% 11.9% 11.3% 9.0%
Industrial H.T. 4.5% 4.8% 6.5% 8.4% 6.7%
Railway 0.0% -0.4% 0.0% 0.8% 0.6%
Total 10.7% 12.1% 11.3% 10.4% 8.2%
6.3 Consumption by Un-metered Categories
6.3.1 The Board in its ARR & tariff petition for FY 2012-13 has stated that the following
categories of consumers under BSEB are un-metered:
– Kutir Jyoti consumers in rural & urban areas
– Domestic consumers in rural areas
– Non‐domestic consumers in rural areas
– Street lights Consumers both in urban and rural areas
– Irrigation/ Agriculture pump sets (Private and State Government)
6.3.2 The Board in its ARR and tariff petition has computed the consumption of above un-
metered categories of consumers on the basis of the following norms:
– Kutir Jyoti (Rural): 18 Units per month per connection
– Kutir Jyoti (Urban): 30 Units per month per connection
– DS‐I: 80 Units per month per connection
– NDS‐I: 80 Units per month per connection
– IAS‐I (Private): 1485 Units per annum per KW
– IAS‐II (State): 225 Units per month per HP
– Street Light: Based on past trend
6.4 Kutir Jyoti (Rural and Urban)
Petitioner’s Submission
6.4.1 BSEB in its tariff petition has submitted that in view of the increased power
availability to BSEB in the current year and in the ensuing year, BSEB has increased
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 152
the power supply hours to the rural areas of Bihar to all consumer categories.
Accordingly, the Kutir Jyoti consumers are being supplied power for increased
number of hours. For the purpose of projecting the energy sold to the Kutir Jyoti
unmetered category of consumers, BSEB has used normative consumption of 18
units per month per connection for unmetered rural areas and 30 units per month per
connection for metered rural area & metered urban area. The number of consumers
used for this projection is the average of the opening and closing number of
consumers for the year.
6.4.2 BSEB has also submitted that, as per the Commission direction, BSEB has
undertaken a sample study of consumption by Kutir Jyoti consumers. Based on this
sample study the average monthly consumption of Kutir Jyoti consumers is
determined to be 29.90 units per month. However, the average monthly consumption
of 29.90 units was arrived at by the Board based on the data of ten (10) consumers
of village Mahatbar under electric supply sub-division Biharsharif (Rural) and fifteen
(15) consumers of Central electric supply area Panta. Accordingly, BSEB prays to
the Commission to approve the considered consumption norm of 30 units per month
for Kutir Jyoti consumers for FY 2012-13. However, BSEB has submitted to consider
consumption norm of 18 units per consumer per month for projecting sales of Kutir
Jyoti (Rural - Unmetered).
6.4.3 BSEB has also submitted that in other states of the country the consumption norm for
rural and urban Kutir Jyoti is 30 units/ month. The table below reproduces the
submission made by BSEB in regard to consumption norms followed by other
boards/ distribution licensees.
Table 97: BPL consumption norms in other states
Sl. State Allowed units for BPL Consumers
1 Bihar (BSEB) 18 units for rural areas 30 units for urban areas.
2. Gujarat Benefit of concessional tariff given to the first 30 units consumed by BPL consumers. Above that normal DS tariff charged.
3 Madhya Pradesh
30 units per connection per month allowed irrespective of geographical location
4 Chhattisgarh
40% of total consumers in BPL assumed to have sales of 80 units per month and accordingly billed on other domestic rates. For all other consumers in BPL category 30 units per connection per month approved in Tariff Order for FY10.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 153
Sl. State Allowed units for BPL Consumers
5 Tamil Nadu 26 units per connection per month allowed assuming 8 hours of supply per day for a connected load of 110W
6 Maharashtra 30 units per connection per month
7 Punjab Connected load of upto 1000 W allowed to BPL consumers Free electricity provided to BPL consumers upto the first 100 units
6.4.4 In view of the above, the Board has requested the Commission to consider the
consumption norm of 30 units per connection per month for both urban and rural
Kutir Jyoti consumers of the state.
6.4.5 BSEB has projected an addition of 8,86,499 consumers during FY 2011-12 &
12,96,104 consumers during FY 2012-13 in Kutir Jyoti metered category in the rural
areas. The sale to the Kutir Jyoti metered consumers in the rural areas has been
projected based on consumption norm of 30 units per connection per month and
average number of consumers in this tariff category.
6.4.6 Accordingly, the sales for Kutir Jyoti consumers have been projected at 324.70 MU
for FY 2011-12 as against approved level of 263 MU. For FY 2012-13, BSEB has
projected sale of 717.57 MU for Kutir Jyoti category.
Commission’s Analysis
6.4.7 The Commission is of the view that as the Kutir Jyoti services in rural and urban
areas are allowed at connected load of 60 watt and 100 watt respectively, with
restricted hours of supply, it would be difficult to consume 30 units with 60 watt
connected load in rural areas. In view of the same, the Commission has approved
the consumption norm of 18 units/ service/ month in rural areas and 30 units/ service/
month in urban areas in the Tariff Order for FY 2010-11.
6.4.8 In the Tariff Order issued by the Commission on 1st June, 2011 for FY 2011-12 the
Commission has stated that,
“The comparison drawn with other states has to be viewed in the context that the all
India per capita consumption is 774 units as against 107 units in Bihar. In view of the
above observations, the Commission finds no reason to revisit its stated position on
consumption norm for this consumer category. The Commission shall continue to use
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 154
consumption norm of 18 Units/month for unmetered rural and 30 Units/month for
unmetered urban Kutir Jyoti consumers. The Commission would like to emphasis
once again that if BSEB desires Commission to revisit the norms for unmetered
categories it has to provide sufficiently credible evidence and at the same time meter
such unmetered consumers.”
6.4.9 Further the tariff schedule provides the flexibility for billing at DS-I tariff rates by
BSEB to consumers found using load more than that provided for Kutir Jyoti
connections. The Commission cannot condone BSEB for its inability to implement
this provision of the tariff schedule. The Commission is of the opinion that the
consumption norm of 29.90 units per consumer per month which has been arrived at
based on survey of twenty-five (25) consumers can not be representative of the
consumption of entire Kutir Jyoti consumer base of BSEB. In spite of a standing
direction and repeated reminders of the Commission to submit concrete evidences in
the form of field data/studies in this regard, BSEB till date has failed to provide any
such study/data.
6.4.10 The Commission has also taken into consideration the verification report submitted
by the consultant appointed by the Commission for the purpose, which has also
substantiated consumption pattern of 18 units per month for Kutir Jyoti rural
consumers. Above all, although the Kutir Jyoti consumers in urban areas are
metered, the Board has not furnished the consumption based on meter readings.
Hence the consumption for this category is assessed 30 units / month / service.
Further, BSEB vide letter no. Com/Tar/161/2011-260 dated 9th February, 2012 has
submitted that
“BSEB is in stabilisation phase in terms of release of Kutir Jyoti Connections and its
billing. For projection, 30 units have been considered for KJ metered (rural & urban)
consumers. Actual sales will be taken into account at the time of truing up process.”
6.4.11 On the matter of sales to unmetered Kutir Jyoti Consumers BSEB vide letter no.
Com/Tar/161/2011-260 dated 9th February, 2012 submitted that BSEB proposes no
increase in no. of unmetered consumers as only metered connections are released
by BSEB. BSEB is in the process of installation of meters to all its unmetered
consumers in phased manner and intends to complete the process by March, 2013.
At the same time, it is not possible to assess category-wise metering by BSEB. For
projection of tariff based on the tariff schedule, it is desirable that the existing status
is considered and at the time of true-up based on the actual scenario revenue is
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 155
considered. BSEB has also submitted that as per Tariff Schedule of Tariff Order, only
Kutir Jyoti Urban (meter) category exists and hence all consumers are considered as
metered while calculating revenue from sale of power.
6.4.12 The number of consumers as projected by the BSEB is accepted as large numbers
of villages are being electrified and BPL households are connected under RGGVY.
6.4.13 As per BSEB submission with regard to the process of installation of meters to all its
unmetered consumers in phased manner and its intention to complete the process by
March, 2013, the Commission has approved Kutir Jyoti consumption based on the
norms approved for FY 2011-12. As all the connections under Kutir Jyoti are
expected to be metered by March, 2013, there will not be unmetered consumer.
Table 98: Approved Kutir Jyoti Consumption for FY 2 012-13
Details No. of consumers Norm Adopted/ month Consumption for 2012 -13 (MUs)
Rural (un-metered) 302914 18 unit
32.71
Rural (metered) 2455970 423.23
Urban (metered) 3571 30 unit 1.46
Total 2762455 457.40
6.4.14 The Commission approves 18 units/ service/ month in rural areas and 30 units/
service/ month in urban areas. Based on this norm the Commission approves
457.40 MUs to Kutir Jyoti (rural and urban) for FY 2012-13 as detailed above
against projected sale of 717.57 MUs by BSEB.
6.5 Domestic - I (Rural) (DS-I)
Petitioner’s Submission
6.5.1 BSEB in its petition has submitted that it has witnessed a near double digit growth in
the last few years in the units sold to this category and it expects the same trend to
continue in future years as well. The number of consumers in the Domestic category
has witnessed a five years CAGR of 13.3% between FY 2005-06 and FY 2010-11.
BSEB expects that this trend will continue in future also. For DS-I Category, BSEB
has projected the number of consumers for FY 2012-13 based on the 5 years CAGR
of 13.3% at 1159387 consumers.
6.5.2 For the FY 2011-12, BSEB has proposed revised sales estimate for this category at
924.86 MU as against 886 MU approved by the Commission. As per the
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Bihar Electricity Regulatory Commission Page 156
consumption norms of 80 units per month per consumer, the sales for FY 2012-13
have been projected at 1047.74 MU.
Commission’s Analysis
6.5.3 The Commission after analysing the data for DS-I category for FY 2010-11 is of the
opinion that specific consumption of DS-I consumer category is relatively stable. For
domestic category consumers, 5 years CAGR would be more appropriate trend for
projecting no. of consumers and connected load for FY 2012-13.
6.5.4 The Commission, in-line with the approach used in its past Tariff Order, has
considered the specific consumption of 80 units / connection / month, which has
been adopted by the Board for this category. Accordingly, the Commission
considering FY 2010-11 as the base year, CAGR of 5 year and the consumption
norm of 80 units/ connection/ month, approves energy sale for FY 2012-13.
6.5.5 The Commission approves sale of 1047.74 MUs for the DS-I category of
consumers for FY 2012-13 as proposed by BSEB. Howev er the Commission
again directs BSEB to completely meter this consume r category by FY 2012-13.
6.6 Domestic Metered (Urban) - DS-II
Petitioner’s Submission
6.6.1 BSEB has projected the number of consumers, connected load and energy sales for
DS-II category for FY 2011-12 & FY 2012-13 at the 5 years CAGR of 13.3%, 9.6% &
10.1% respectively taking FY 2010-11 as the base year. For the FY 2011-12 BSEB
revises the sales estimates for this category at 1217.44 MU as against 1424 MU
approved by the Commission. For FY 2012-13, BSEB has projected sale of 1340.37
MU.
Commission’s Analysis
6.6.2 On scrutiny of the Schedule -3 of the Annual accounts of FY 2010-11 it was observed
that the specific consumption of Domestic-II category of consumers during FY 2010-
11 was 92.42 kWh computed on the basis of average number of consumers during
FY 2010-11. However, the BSEB in its tariff petition for FY 2012-13 has projected the
specific consumption of 89.36 kWh computed on the basis of average number of
consumers during FY 2012-13. The Commission from the past petitions of the BSEB
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 157
has also observed that the specific consumption over the years has gone up. Since
the consumers are in urban areas where the quality of supply is said to have been
improved, the projected specific consumption below the current level as proposed by
the BSEB doesn’t seems proper.
6.6.3 The BSEB in its petition has also stated that, BSEB is purchasing power through
short/medium term agreement from NVVNL and will provide this power to categories
where hours of power supply is on lower side and to towns where premium tariff is
proposed.
6.6.4 In light of the above facts, the Commission while approving the sales has considered
the specific consumption of 95 kWh for DS-II category. Further, the Commission feels
that the five (5) year CAGR on the base year of FY 2010-11 is more appropriate for
projecting no. of consumer as well as connected load to this consumer category.
Accordingly, the Commission approves the consumption of 1425.9 M Us for
Domestic-II (DS-II) category for the FY 2012-13 aga inst 1340.37 MUs as
projected by BSEB.
6.7 Domestic - DS-III
Petitioner’s Submission
6.7.1 BSEB has projected the energy sales at the 5 years CAGR of 13.3 %. BSEB revised
the sale estimates for this category at 0.90 MU for FY 2011-12 and 0.99 MU
projecting for FY 2012-13.
Commission’s Analysis
6.7.2 The Commission feels that the 5 year CAGR on the base year of 2010-11 is
appropriate for projecting energy sales, no. of consumer as well as connected load to
this consumer category.
6.7.3 The Commission, therefore, approves the consumption of 0.99 MU by DS-III
category for the FY 2012-13.
6.8 Non-Domestic-I – Rural (NDS-I)
Petitioner’s submission
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 158
6.8.1 The BSEB has submitted that the Non-Domestic-I (Commercial) tariff category is
applicable to unmetered commercial consumers in the rural areas. The number of
consumers and connected load for this consumer category for FY 2012-13 has been
projected at 3 years CAGR of 7.1% & 17.1% respectively.
6.8.2 BSEB in its ARR and tariff petition for FY 2012-13 has revised the sales estimates for
this category to 20.61 MU for FY 2011-12 as against 29 MU as approved by the
Commission. Based on the consumption norm of 80 units per month per consumer,
the sale for this category for FY 2012-13 has been projected at 22.08 MU.
Commission’s Analysis
6.8.3 The Commission is of the opinion that the consumption of commercial category is
closely linked to current business environment. Therefore the Commission considers
it reasonable to compute No. of consumers and connected load on the basis of three
(3) year CAGR with FY 2010-11 as base year for this consumer category.
6.8.4 Further, as per BSEB submission with regard to the process of installation of meters
to all its unmetered consumers in phased manner and intends to complete the
process by March, 2013, the Commission has approved consumption based on the
same.
6.8.5 The Commission accordingly approves energy consumpt ion of 22.08 MU by
NDS-I consumer category for the FY 2012-13, as projected by the BSEB in-li ne
with the approach used by the Commission in tariff Order for FY 2011-12.
6.9 Non-Domestic-II – Urban (NDS-II)
Petitioner’s Submission
6.9.1 BSEB has projected the number of consumers, connected load and energy sales at
three (3) years CAGR. Further, BSEB has revised its energy sales estimates to
506.61 MU for FY 2011-12 as against 575 MU as approved by the Commission. The
sale for FY 2012-13 is projected at a three (3) years CAGR of 9.7% at 555.56 MU.
Commission’s Analysis
6.9.2 The Commission while analysing the past trends considered four (4) year CAGR
more appropriate for projecting sales for FY2011-12. The Commission is of the
opinion that the socio economy in the State is improving over the last few years
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 159
which will have positive impact on the overall growth of Non-domestic category.
There is an increasing trend of the specific consumption during the past five (5)
years. In view of this, the growth of number of consumers, connected load and
energy sales at four (4) years CAGR seems reasonable.
6.9.3 For reasons stated the Commission approves the ener gy consumption of 581.8
MUs for NDS-II category for the FY 2012-13, against 555.56 MUs as projected by
BSEB.
6.10 Non-Domestic –III (Religious Places) NDS-III
Petitioner’s submission
6.10.1 BSEB has projected the number of consumers, connected load and energy sales for
NDS-III based on 3 years CAGR. The energy sale for FY 2012-13 has been
projected at 17.27 MU.
Commission’s Analysis
6.10.2 The Commission considers four (4) year CAGR for projecting sales, no. of
consumers and connected load for FY2012-13.
The Commission, therefore, approves the consumption of 18.08 MUs in the
Non-Domestic – III category for the FY 2012-13 .
6.11 Industrial LTIS-I & II
Petitioner’s Submission
6.11.1 BSEB has projected energy sales, connected load, number of consumers based on
three (3) years CAGR between FY 2007-08 and FY 2010-11 for industrial LT – I & II
category. Thus no. of consumer, connected load and energy sales has been
projected at 19317, 134666 kW and 190.72 MU for LTIS-I category and consumer,
connected load and energy sales has been projected at 1371, 86753 kW and 122.87
MU for LTIS-II category.
Commission’s Analysis
6.11.2 The CAGR for the 3-year period is about 17.7% whereas growth considered by the
Commission for projecting the sales of FY 2012-13 is four (4) year CAGR which is
about 19.5%. Since there is scope for increasing the industrial production, it is not
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 160
proposed to curtail the consumption of this category as the industry is picking up after
the recession and there is scope for industrialization, particularly, with improvement
in availability of power.
The Commission approves the consumption of 196.6 MU s and 126.6 MUs for
LT IS-I and LTIS – II industry respectively for the FY 2012-13 as proposed by
Board.
6.12 Street Lighting (Public Lighting) SS-I, SS-II
Petitioner’s submission
6.12.1 BSEB in the ARR and tariff petition has submitted that the SS category has shown
negative growth rate during the last 5 years. Accordingly, considering the improved
power availability in the state, energy sales, connected load and number of
consumers for all sub categories under street Lighting has been proposed at the
previous year level. Thus the energy sale for the SS-I, SS-II & SS-III categories has
been projected at 5.61 MU, 26.20 MU & 1.36 MU respectively.
Commission’s Analysis
6.12.2 The Commission while analysing data found that the No. of consumers in FY 2010-
11 has decreased w.r.t. FY 2009-10 whereas the load and sales has increased
during the same period. In this regard the Commission has enquired about the same
from the BSEB vide Commission’s letter No BERC-Tariff-24/ 2011-244 dated 15th
March, 2012. BSEB in response stated vide letter No. Com/ Tariff-161/ 2011 (part)-
444 dated 16th March 2012 that the reason for decrease in no. of Consumers under
“Public Lighting” during FY 2010-11 is also being looked into and the Commission will
be informed accordingly.
6.12.3 The Commission does not appreciate the inability of BSEB to justify their trend of no.
of consumers, connected load and sales. The Commission has also observed an
abrupt increase in specific consumption during FY 2010-11 as per the records of
audited annual accounts of the Board. This abnormal trend indicates the possibility of
either more energy than that consumed is getting booked or the reported connected
consumers is lower than the actual resulting in loss of fixed charges. The
Commission again directs BSEB to investigate the reasons for such abnormal trend
and report the same to the Commission within three months of issue of this order.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 161
6.12.4 The Commission is of the opinion that since a number of villages are being electrified
under RGGVY and other electric infrastructure are being created, streetlights would
be provided in all such case. Accordingly, the Commission approve growth in No. of
Consumer, connected load and sales at a reasonable rate of 4% which is three (3)
year CAGR of load growth.
6.12.5 The Commission approves the energy consumption of 6 .98 MUs and 34.29 MUs
for SS-I and SS-II category respectively under Publ ic Lights (Street lights) for
the FY 2012-13.
6.13 Irrigation and Agriculture Service (IAS-I & II )
Petitioner’s submission
6.13.1 BSEB has projected energy consumption by irrigation and agricultural services at
271.63 MU for IAS-I category considering the consumption norm of 1485 units per
kW per annum, and 317.05 MUs for IAS-II category considering the consumption
norm of 225 units per HP per month for the FY 2012-13.
6.13.2 The BSEB has submitted that during past years the number of consumers has shown
positive growth whereas connected load showed negative growth, whereas in the
recent past, the number of consumers has shown a declining trend. Accordingly,
BSEB has projected no change in the number of consumers and the connected load
over FY2010-11 for FY 2012-13.
6.13.3 For IAS-II sub category, BSEB is expected to add 2764 tube wells having connected
load of 20 kW each to its network in the month of December of FY 2011-12.
6.13.4 The Commission as additional information vide Commission’s letter No BERC-Tariff-
24/ 2011-244 dated 15th March, 2012 enquired about the reason of decrease in No.
of consumers and sales while load has been increasing during FY 2010-11. The
BSEB vide letter No Com/ Tariff-161/ 2011 (part)- 444 dated 16th March 2012
informed the Commission that the reduction in unit sold under the Category “Irrigation
and Agriculture” during FY 2010-11 is mainly due to implementation of revised norms
of consumption (1485 units/ kWh/ annum) fixed by Commission in comparison to
earlier norms of consumption (2000 units/ kWh/ annum) and also non-accountal of
consumption by 20% disconnected consumers which was allowed by the
Commission in their earlier Tariff Order for FY 2006-07 (para 6.3.5) assuming that a
number of disconnected service might be using electricity and it may be difficult to
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 162
effectively check these unauthorised connections in view of pump-sets spread out in
large area and due to lack of adequate machinery.
Commission’s Analysis
6.13.5 The Commission has taken into consideration the verification report submitted by the
third party independent consultant which has substantiated consumption pattern of
1485 units /kW/annum for agriculture consumers in absence of accurate metering.
6.13.6 For State tube wells, the Commission approves a consumption norm of 225 units/ HP
per month as approved in the Tariff Order for FY 2011-12.
6.13.7 Further, as per BSEB submission with regard to the process of installation of meters
to all its unmetered consumers in phased manner and intends to complete the
process by March, 2013, the Commission has approved consumption assuming that
all the unmetered consumers under IAS-I and II category would be converted into
metered connection.
6.13.8 Accordingly, The Commission approves the consumptio n of 271.6 MU for IAS-I
and 317.12 MUs for IAS-II category for FY 2012-13.
6.14 Public Water Works
Petitioner’s submission
6.14.1 BSEB has projected an energy consumption of 60.39 MUs by this category for the
year 2012-13. The BSEB has submitted that Public Water Works has witnessed
negative growth over the past few years. The 3 years CAGR and 5 years CAGR for
sales recorded between FY 2005-06 and FY 2010-11 are -26.3% and -19.5%
respectively. Thus BSEB is expecting that the energy sales for FY 2011-12 and FY
2012-13 to this category will remain same as that of previous year at 60.39 MU.
6.14.2 The Commission as additional information vide Commission’s letter No BERC-Tariff-
24/ 2011-244 dated 15th March, 2012 enquired about the reason of decrease in
sales while No. of consumers and load has been increasing during FY 2010-11. The
BSEB has not given any justification of such abnormalities in it response.
Commission’s Analysis
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 163
6.14.3 The Commission while approving the sales has considered the five (5) years CAGR
for projecting the no. of consumers and connected load. The Commission also
disagrees with the sale projection provided by the BSEB. While approving sales for
FY 2012-13 the Commission has considered the average of specific consumption for
last five (5) years. The Commission also directs BSEB to investigate the reasons for
drop in sales and intimate the Commission within three months of issue of this order.
6.14.4 The Commission in its tariff Order for FY 2011-12 has stated that
“The Commission has observed high load factor in past years. The Commission
directs BSEB to investigate the reasons for such high load factor and report the same
to the Commission within three months of issue of this order.”
6.14.5 The Commission approves the consumption of 160.3 MU s for Pubic Water
Works during the year 2012-13 .
6.15 HT Industry (HTS-I, HTS-II, HTS-III and HTSS)
6.15.1 BSEB has projected the consumption of HT category (HTS-I, HTS-II, HTS-III and
HTSS) at 1830.88 MUs for the FY 2012-13.
6.15.2 BSEB has calculated growth in sales, no. of consumers and connected load based
on a three (3) year CAGR for HTS-I, HTS-II.
6.15.3 BSEB has also submitted that it will provide electricity supply in FY 2011-12 to
upcoming Rail Wheel Factory at Chapra and in FY 2012-13 to Electric Locomotive
factory at Madhepura under HTS-III sub-category. The contract demand of the Rail
Wheel Factory is 26.67 MVA while Electric Locomotive Factory is 13.5 MVA. For
projection of the connected load of new consumers, power factor of 0.9 is
considered. For the projection of energy sales to new consumers BSEB has
considered the load factor as per actuals of FY 2010-11. BSEB has projected
number of consumers, connected load and energy sales in this sub-category for FY
2012-13 considering the addition of the above said consumers.
6.15.4 For HTSS category, no growth has been projected in no. of consumers, connected
load and sales. BSEB projects number of consumers and connected load same as of
FY 2010-11 during the FY 2011-12 & FY 2012-13. BSEB projects sale of 276.87 MU
for FY 2012-13.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 164
Commission’s Analysis
6.15.5 The Commission find it more appropriate to consider four (4) year CAGR for sales,
no. of consumers and connected load for HTS-I, HTS-II sub-category. Since there is
scope for increasing the industrial production, as the industry is picking up after the
recession and there is scope for industrialization, particularly, with improvement in
availability of power in the state of Bihar. Further, the Commission considered it
reasonable to assume consumption of HTSS at least at the same level as in 2010-
11.
6.15.6 The Commission approves the consumption of 2060.3 M Us (1613.7 MU for
HTS-I, II & III and 446.5 MUs for HTSS sub-category ) for HT category the FY
2012-13.
6.16 Railway Traction
Petitioner’s submission
6.16.1 BSEB has submitted that it will provide electricity supply in FY 2011-12 to Railways
at T.S.S. Chapra, Hazipur, Pancrukhi, Samastipur, Jhajha with contract demand of
10.8 MVA each. In FY 2012-13 BSEB will provide electricity supply to Railways at
T.S.S. Ramdayalunagar, Bachhwara, Khagaria, Naugachia, Katihar with contract
demand of 10.8 MVA each. For projection of the connected load of new consumers,
power factor at 0.9 has been considered by BSEB. For the projection of energy sales
to new consumers for FY 2012-13, BSEB has considered the load factor as per
actuals of FY 2010-11.
6.16.2 Thus for FY 2012-13, BSEB has projected number of consumers, connected load
and energy sales at 25, 199350 kW and 784.77 MUs.
Commission’s Analysis
6.16.3 The Commission is of the view that, since there are no restrictions in the supply to
railways and the full demand has to be met, the consumption proposed by the Board
is agreed to.
6.16.4 The Commission approves the consumption of 784.77 M Us for railway traction
during FY 2012-13 as proposed by the Board.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 165
6.17 Energy sales to Nepal (NEA)
6.17.1 BSEB has an obligation to provide around 50 MW of power to Nepal. BSEB has
projected energy sale of 555 MU in FY 2012-13 based on the actuals of FY 2010-11
and the Commission approves the same.
6.18 Total Energy Sales, No. of Consumers & Connect ed Load
Petitioner’s submission
6.18.1 BSEB has submitted that they are implementing premium tariff for the PESU area (all
divisions), Rajgir area (11 kV Town Feeder & 11 kV Kund Feeder) and Bodh Gaya
area (11 kV Bhagalpur Feeder, 11 kV PHED Feeder, 11 kV Town feeder, 11 kV
Magadh University Feeder and 11 kV New Industrial Feeder).
6.18.2 BSEB in its ARR and tariff petition has separately projected number of consumers,
connected load and energy sales in Premium tariff area as well as for the entire
BSEB. For estimating sales to Rest of Bihar, sale projection of Premium tariff area
was excluded from the sale projection of entire BSEB. The sale, connected load and
number of consumers for premium tariff area and rest of Bihar as projected by BSEB
is given below:
Table 99: Projected no. of consumers, connected loa d and energy sale - BSEB
Category Number of Consumers Connected Load Energy Sales
FY 2011-12
FY 2012-13
FY 2011-12
FY 2012-13
FY 2011-12
FY 2012-13
Kutir Joyti (R) – Unmetered 302,914 302,914 18,175 18,175 65.43 65.43
Kutir Joyti (R) – Metered 1,159,866 2,455,970 69,592 147,358 257.98 650.85
Kutir Joyti (Urban) 3,571 3,571 357 357 1.29 1.29
D.S.-I 1,023,413 1,159,387 980,069 1,073,871 924.86 1,047.74
D.S.-II 1,172,056 1,327,779 1,461,938 1,601,860 1,217.44 1,340.37
D.S.- III 44 50 313 343 0.90 0.99
N.D.S.-I 22,208 23,795 25,078 29,359 20.61 22.08
N.D.S.-II 186,706 200,048 481,488 563,684 506.61 555.56
N.D.S.-III 176 188 1,819 2,130 15.75 17.27
IAS-I 51,663 51,663 182,916 182,916 271.63 271.63
IAS-II 5,810 5,810 87,598 87,598 166.99 317.05
LT Industrial-I 17,585 19,317 120,359 134,666 162.09 190.72
LT Industrial-II 1,248 1,371 77,537 86,753 104.42 122.87
Public Water work (PWW) 923 923 18,741 18,741 60.39 60.39
Street light-I (Meterd) 99 99 953 953 5.61 5.61
Street light-II (Unmetered) 206 206 4,452 4,452 26.20 26.20
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 166
Category Number of Consumers Connected Load Energy Sales
Street light-III 1 1 231 231 1.36 1.36
H.T.S.-I 919 976 229,417 244,308 798.56 925.45
H.T.S.-II 37 40 75,707 80,621 351.42 407.26
H.T.S.-III 2 3 35,660 47,810 125.45 221.30
H.T.S.S. 15 15 50,169 50,169 276.87 276.87
R.T.S. 20 25 150,750 199,350 566.89 784.77
Total 3,949,483 5,554,152 4,073,319 4,575,704 5,928.75 7,313.05
Table 100: Projected no. of consumers, connected lo ad and energy sale – Premium tariff Area
Category Number of Consumers Connected Load Energy Sales FY 2011-
12 FY 2012-
13 FY 2011-
12 FY 2012-
13 FY 2011-
12 FY 2012-
13
Kutir Joyti (R) - Unmetered - - - - - -
Kutir Joyti (R) - Metered - - - - - -
Kutir Joyti (Urban) 1,373 1,373 137 137 0.49 0.49
D.S.-I 2,473 2,802 2,603 2,853 2.23 2.53
D.S.-II 289,369 327,816 460,125 504,163 529.17 582.60
D.S.- III - - - - - -
N.D.S.-I 131 140 169 197 0.12 0.13
N.D.S.-II 62,637 67,113 165,197 193,398 233.26 255.79
N.D.S.-III 45 48 481 563 0.49 0.54
IAS-Il 2,112 2,112 10,448 10,448 15.52 15.52
IAS-II 118 118 549 549 1.36 1.99
LT Industrial-I 3,380 3,713 29,512 33,020 30.34 35.70
LT Industrial-II 430 472 20,274 22,684 43.29 50.94
Public Water work (PWW) 99 99 5,884 5,884 24.99 24.99
Street light-I (Meterd) 8 8 204 204 1.10 1.10
Street light-II (Unmetered) 62 62 1,049 1,049 8.70 8.70
Street light-III - - - - - -
H.T.S.-I 448 476 88,889 94,658 367.40 425.78
H.T.S.-II 8 9 24,431 26,017 145.34 168.44
H.T.S.-III - - - - - -
H.T.S.S. 4 4 14,187 14,187 37.22 37.22
R.T.S. - - - - - -
Total 362,697 406,365 824,140 910,012 1,441.02 1,612.45
Table 101: Projected no. of consumers, connected lo ad & energy sale – Rest of Bihar
Category Number of Consumers Connected Load Energy Sales
FY 2011-12
FY 2012-13
FY 2011-12
FY 2012-13
FY 2011-12
FY 2012-13
Kutir Joyti (R) - Unmetered 302,914 302,914 18,175 18,175 65.43 65.43
Kutir Joyti (R) - Metered 1,159,866 2,455,970 69,592 147,358 257.98 650.85
Kutir Joyti (Urban) 2,198 2,198 220 220 0.79 0.79
D.S.-I 1,020,940 1,156,585 977,465 1,071,018 922.63 1,045.21
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 167
Category Number of Consumers Connected Load Energy Sales
D.S.-II 882,687 999,963 1,001,813 1,097,696 688.27 757.77
D.S.- III 44 50 313 343 0.90 0.99
N.D.S.-I 22,077 23,655 24,909 29,161 20.49 21.95
N.D.S.-II 124,070 132,936 316,292 370,286 273.35 299.76
N.D.S.-III 131 140 1,338 1,567 15.26 16.73
IAS-Il 49,551 49,551 172,468 172,468 256.11 256.11
IAS-II 5,692 5,692 87,049 87,049 165.63 315.06
LT Industrial-I 14,205 15,604 90,847 101,646 131.75 155.03
LT Industrial-II 818 899 57,263 64,070 61.12 71.92
Public Water work (PWW) 824 824 12,856 12,856 35.40 35.40
Street light-I (Meterd) 91 91 749 749 4.51 4.51
Street light-II (Unmetered) 144 144 3,403 3,403 17.50 17.50
Street light-III 1 1 231 231 1.36 1.36
H.T.S.-I 471 500 140,528 149,650 431.16 499.67
H.T.S.-II 29 30 51,276 54,604 206.08 238.83
H.T.S.-III 2 3 35,660 47,810 125.45 221.30
H.T.S.S. 11 11 35,982 35,982 239.66 239.66
R.T.S. 20 25 150,750 199,350 566.89 784.77
Total 3,586,786 5,147,787 3,249,179 3,665,692 4,487.73 5,700.60
Commission’s Analysis
6.18.3 The Commission vide letter No. BERC- Tariff – 24/11- 825 dated 21st December,
2011 directed BSEB to furnish the assumption regarding break-up of No. of
consumers, sales, load and revenue for premium tariff areas, rest of Bihar. However,
in response the BSEB vide letter No Com/Tar/161/2011-260 dated 09th February,
2012 has not submitted any clarification in this regard. It is also worth noting that the
projected no. of Consumer in DS-II category for premium areas and rest of Bihar
provided in the additional information vide BSEB letter No Com/Tar/161/2011-260
dated 09th February, 2012 is not matching with the one submitted by the BSEB in its
ARR and tariff and the BSEB has also not submitted any reason thereof.
6.18.4 In view of the BSEB response showing their inability to justify their assumption for
sub-category wise load, sales forecast and providing actual data of no. of consumers,
connected load and sales for first six (6) month of FY 2011-12 for premium areas and
BSEB as a whole, the Commission approves the Number of consumers, connected
load and energy sales based on the trend analysis of the sales for various consumer
category.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 168
6.18.5 Number of consumers, connected load and energy sales as approved by the
Commission for the entire State is given in the table below:
Table 102: Approved no. of consumers, connected loa d & energy sales of BSEB for FY 2012-13
Category No. of Consumer Connected Load (kW) Sales (MUs)
Projected by BSEB
Approved by Commission
Projected by BSEB
Approved by Commission
Projected by BSEB
Approved by Commission
Kutir Joyti (R) - Metered
2,758,884 2,758,884 165,533 165,533 716.28 456
Kutir Joyti (Urban) 3,571 4,211 357 357 1.29 1
D.S.-I 1,159,387 1,159,387 1,073,871 1,073,871 1,047.74 1,048
D.S.-II 1,327,779 1,327,779 1,601,860 1,601,860 1,340.37 1,425
D.S.- III 50 50 343 343 0.99 1
N.D.S.-I 23,795 23,894 29,359 28,902 22.08 22
N.D.S.-II 200,048 200,876 563,684 554,912 555.56 582
N.D.S.-III 188 189 2,130 2,097 17.27 18
IAS-I 51,663 51,663 182,916 182,916 271.63 272
IAS-II 5,810 5,810 87,598 87,598 317.05 317
LT Industrial-I 19,317 19,422 134,666 133,374 190.72 197
LT Industrial-II 1,371 1,378 86,753 85,921 122.87 127
Public Water work (PWW) 923 1,064 18,741 18,747 60.39 160
Street light-I (Meterd) 99 138 953 1,034 5.61 7
Street light-II (Unmetered)
206 288 4,452 4,828 26.20 33
Street light-III 1 1 231 251 1.36 2
H.T.S.-I 976 990 244,308 253,298 925.45 967
H.T.S.-II 40 39 80,621 83,588 407.26 426
H.T.S.-III 3 3 47,810 47,810 221.30 221
H.T.S.S. 15 15 50,169 50,169 276.87 447
R.T.S. 25 25 199,350 199,350 784.77 785
Total 5,554,152 5,556,106 4,575,704 4,576,757 7,313.05 7,512
The sale to the consumers of premium tariff area projected by the BSEB in Table 100
is approved. The energy amounting to 5899 MU is approved as sale to rest of Bihar.
6.19 Transmission & Distribution Losses (T&D Losses )
Petitioner’s submission
6.19.1 The Petitioner has submitted that the T&D losses of the Board are on the higher side
as compared to the target set by the Commission because of lower unmetered
consumption norm, inefficient meter billing due to defective meters etc. Further,
dilapidated distribution network of BSEB has contributed to higher T&D losses of
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 169
BSEB. Large scale rural electrification under RGGVY scheme leading to expansion
of rural distribution network too has contributed to the T&D losses of BSEB.
6.19.2 Further, the Board has submitted that, the Commission had restated norms of
unmetered consumption for Kutir Jyoti connections from 30 units per month to 18
units per month and for Agriculture connections of IAS-I category from 2000 units per
annum to 1485 units per annum which are not reflective of the actual power
consumption by these categories and is adding to the T&D losses of BSEB.
Consequent to increased availability of power as reflected in the projected increase
in power purchase quantum, BSEB would be able to increase number of hours of
electricity supply to such consumers. This is expected to increase specific
consumption of such consumers, in excess of the norms approved by the
Commission.
6.19.3 The Board has also informed that BSEB has undertaken massive electrification
works under the RGGVY scheme. There has been a tremendous increase in the
network of BSEB in the last 2 years in the high loss rural areas consequent to village
electrification. The village electrification drive has led to an addition of large number
of Kutir Jyoti consumers. This number of such consumers is expected to go up to 27
lakhs within the next two years from 5.89 lakhs in FY 2010-11. This significant
expansion of the network has not only led to increase in the technical losses in the
system, but has also rendered the system porous and prone to theft of electricity.
Due to both these reasons, BSEB has not been able to achieve the loss targets set
by Commission.
6.19.4 The Commission vide letter No. BERC- Tariff – 24/11- 825 dated 21st December,
2011 enquired about the reason of non-achievement of T&D loss target as specified
by the Commission in spite of implementation of various schemes like RGGVY, R-
APDRP etc. In response to this the BSEB vide letter No Com/Tar/161/2011-260
dated 09th February, 2012 informed the Commission that the Board has been taking
many steps for reduction in T&D loss as well as AT&C loss since 2006-07. However,
T&D loss of the Board has been reduced by 4.51% only during the period from 2005-
06 (42.83%) to 2009-10 (38.32%). The main reason for such a lower reduction in
T&D loss by the Board even after making sustained efforts were explained as given
below:-
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 170
• The Board has to supply electricity to Rural/BPL consumers (1212067 nos. as
on 31.03.2010) having unmetered and fixed tariff. Any additional quantum of
power supply to those consumers increases T&D loss / AT&C loss.
• BERC has revised monthly/ annual consumption of the meterless category of
consumers namely, Kutir Jyoti (Rural) and Agriculture & Irrigation (IAS-I) in its
Tariff Order dated 06.12.2010. Accordingly, the monthly assumed consumption
for Kutir Jyoti (Rural) has been reduced from 30 units per month to 18 units per
month and the annual assumed consumption for IAS – I from 2000 units per KW
to 1485 units per KW. This revision in annual consumption has resulted into
increase in T&D loss by 2.22 % every year with effect from 2010-11 in
comparison to the period prior to 2010-11.
• Schemes for reduction of T&D /AT&C loss from 11 KV to consumers' end has
not yet been undertaken. It is an admitted fact that the AT&C loss is maximum in
supply of power to the consumers below 11 KV.
• APDRP Programme was mainly for strengthening of infrastructure of power
supply at 132 KV and 33 KV as also metering of consumers in urban areas. It is
relevant to mention here that the Board has made remarkable improvement in
billing of HT consumers as would be evident from the following table:-
Table 103: Trend of No. of Consumer, connected load , unit and amount billed
Year No. of
consumers
Connected
load Unit billed (MUs)
Amount billed
(Rs. Cr.)
2005-06 667 248050 673.51 295.27
2006-07 699 251991 762.08 341.46
2007-08 763 288460 964.14 423.25
2008-09 867 331053 1275.40 546.38
2009-10 910 333413 1475.09 631.93
• It would be clear that the connected load of HT consumers increased by 34.44%
during the period from 2005-06 to 2009-10 whereas, the unit billed increased by
119.02% during the said period.
• The infrastructure for supply of electricity from 11 KV to the consumers' end is
very old and the conductors at many places are of Iron made having maximum
technical loss. As already stated, capital projects for replacement of conductors
has been taken up but it is expected to be completed by 2-3 years from now,
depending upon availability of fund from State Govt.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 171
• Board's financial position is alarming and it is not in a position to even meet
urgent expenditure such as, payment to power suppliers, establishment
expenses as also O&M expenses. Under the circumstances it is difficult to
generate any fund for strengthening of its infrastructure including metering of
consumers below 11 KV level. The Board is fully dependent on the State Govt.
for metering, re-conductoring, etc.
• Massive electrification to rural mass under RGGVY is further increasing T&D
loss / AT&C loss in absence of methodology to establish base line data
collection system and to capture AT&C losses in different areas to control the
same as envisaged under Restructured Accelerated Power Development and
Reform Programme (R-APDRP).
• The Govt. of India through the Restructured Accelerated Power Development
and Reform Programme (R-APDRP) has now initiated action for providing
financial help to SEBs for preparation of base line data with regard to
identification of area of losses and also for renovation, modernization and
strengthening of 11 KV level sub-station, transformer / transformer centre, re-
conductoring of lines at 11 KV level and below, load bifurcation, feeder
separation, load balancing, HVDC (11 KV), aerial bunching conducting in dense
areas, replacement of electro-magnetic energy meters with tamper proof
electronic meters, installation of capacitor bank and mobile service centre, etc.
The Board may expect substantial reduction in T&D/AT&C loss only after
completion of the aforesaid scheme.
6.19.5 The Board has also submitted that it is making all efforts to control/ reduce
the T&D losses in the State, however, the losses during 2009-10 and 2010-11
could not be reduced to the target level fixed by the Commission mainly due
to massive addition of network in rural areas, addition of subsidized rural/Kutir
Jyoti connections and lack of availability of funds for undertaking loss
reduction works envisaged by BSEB. The Commission is requested that the
T&D targets for FY 2011-12 & FY 2012-13 as proposed in this petition be
accordingly approved.
6.19.6 In view of the above submissions, the Board has prayed to the Commission to
approve the T&D loss levels for FY 2011-12 at 42% & FY 2012-13 at 41% in
consideration of the existing T&D loss levels of BSEB. The T&D losses of the
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 172
previous years as approved by the Commission, actual as per accounts and
the projections for FY 2011-12 (RE) and FY 2012-13 are as shown in the
table below:
Table 104: T&D Losses of BSEB for previous years an d projections
Financial Year/ T&D Loss (%) Approved by Commission Actual as per Annual Accounts
FY 2006-07 41.40% 42.61%
FY 2007-08 38.00% 39.06%
FY 2008-09 38.00% 37.98%
FY 2009-10 35.00% 38.32%
FY 2010-11 32.00% 43.59%
Financial Year/ T&D Loss (%) Approved by Commission Projected
FY 2011-12 29.00% 42.00%
FY 2012-13 27.50% 41.00%
6.19.7 BSEB has also prayed to the Commission for revision of the existing consumption
norms for Kutir Jyoti (Rural – Unmetered) and IAS-I to 30 units per connection per
month and 2000 units per KW per annum respectively.
Commission’s analysis
6.19.8 The Commission in its Tariff Order for FY 2006-07 approved the T&D loss target for
the Board till FY 2008-09. Later on the Commission in its Tariff Order for FY 2008-09
relaxed the loss target for FY 2008-09 to 38% from the previous set target of 34%
because of non-achievement of loss target by the Board. Further the Commission
fixed the T&D loss trajectory till FY 2013-14 for the Board in its subsequent Tariff
Orders.
Table 105: T&D loss target Vs. Achievement by BSEB
Year T&D Loss targets
set by BERC
Approved by
BERC in
respective TO
T&D Loss
proposed by
BSEB
As per Annual
Accounts of the
BSEB
FY 2006-07 41.4% - 36.0% 42.61%
FY 2007-08 38.0% - 41.4% 39.06%
FY 2008-09 34.0%* 38.0% 40.5% 37.98%
FY 2009-10 - 35.0% 35.0% 38.32%
FY 2010-11 - 32.0% 38.0% 43.59%
FY 2011-12 - 29.0%
36.0% (Revised
estimate - 42%
as per FY 2012-
13 petition)
-
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 173
FY 2012-13 - 27.5% 41.0% -
FY 2013-14 - 26.0% - -
* Later on for FY 2008-09 T&D loss target was revised to 38% in TO for FY 2008-09
6.19.9 It has been observed that the Board has not been able to meet the loss reduction
target set by the Commission in the past. The audited accounts of the Board are also
reflecting the increasing trend of T&D loss during the past two years. The other factor
worth noting here is that the Board in lieu of reducing the T&D loss is proposing
higher loss level for FY 2011-12. The Board had projected T&D loss of 36% for FY
2011-12 in its tariff petition for FY 2011-12, whereas now the Board in its revised
estimate is proposing T&D loss of 42% for FY 2011-12 and 41% FY 2012-13. The
T&D loss level projected by the Board for FY 2011-12 in the revised estimate (42%)
is even more than the actual loss level of the Board for the FY 2006-07. In the above
scenario, the Commission is of the view that the loss reduction initiatives taken by the
Board during the past six (6) years is a big question mark in itself.
6.19.10 The Board’s logic behind increasing trend of T&D in the state of Bihar on account of
huge electrification in rural areas under scheme such as RGGVY is not justifiable as
most of the states in India has availed such schemes although their loss level has
improved/ improving trend unlike BSEB. This is also to be noted that there are other
central Govt. sponsored schemes such as APDRP, R-APDRP and strengthing of
transmission netwokk under Rastruiya Sam Vikas Yojana (RSVY) which are targeted
for strengthing of transmission and distribution network of the Board wherein the
impact of investment through Govt. grant should have reduced the overall T&D loss
of the Board during the past six (6) years. In addition, the State Government is also
providing plan funds for 100% metering and replacement of old conductors. All these
schemes should help BSEB to reduce T&D rather than increase T&D loss. Hence,
rural electrification cannot be held responsible for high T&D loss in Bihar where funds
are flowing for network and distribution system improvement through Central
Government and multilateral funding agencies such as ADB, PFC etc.
6.19.11 Keeping in view the current state of affair of the Board in terms of initiative and
outcome of T&D loss reduction strategy vis-à-vis the Board’s proposal of increasing
T&D loss, the Board’s approach of diverting Government grant towards meeting
financial losses of the Board on account of higher T&D loss will only encourage the
Board to give least priority to loss reduction initiative in future and shall put
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 174
unnecessary burden on the State Government as well as Consumers at large in the
State of Bihar through unjustifiable tariff hike, due to inefficiencies of the Board.
6.19.12 It is a well-accepted principle that T&D losses are a controllable parameter and the
Commission has rightly set trajectory for it. BSEB is responsible for consequences
arising out of non-achievement of target of controllable parameter. It is the
responsibility of BSEB to take appropriate measures to bring down losses within the
trajectory approved by the Commission. BSEB now cannot pray before the
Commission to pass on the impact of non-achievement of the loss trajectory to
consumers. The Commission has been approving the capital expenditure proposed
by BSEB in its tariff petitions with an expectation that the promised operating
efficiencies would be achieved by BSEB. BSEB has already spent significant amount
of money on capital expenditure through APDRP, RGGVY, RSVY and state plan
without any perceptible gain in terms of loss reduction.
6.19.13 The Electricity Act 2003 was amended in 2007 to strengthen the mechanism and
empower distribution utilities to take effective steps to improve efficiency and curb
theft and losses. Therefore, BSEB cannot express its inability to curb theft and T&D
losses. The Commission having set the loss trajectory and also revised it once in its
earlier Tariff Order does not find any justification to go for another revision. The
Commission believes that the consumers of the state should not suffer on account of
inefficient performance of BSEB.
6.19.14 So far as the proposal of BSEB for revising the existing consumption norms of 18
units per month for Kutir Jyoti (Rural – Unmetered) consumers and the existing
consumption norm of 1485 units per kW per annum for IAS-I consumers is
concerned, BSEB has not conducted any credible study with appropriate sample size
to support the claim of increased norms. The Commission has got the survey and
study conducted of reasonable number of Kutir Jyoti (Rural) and IAS –I consumers to
ascertain the average consumption of these consumers. The study supports the
consumption norms approved by the Commission for Kutir Jyoti (Rural) and IAS –I
consumers.
Therefore , The Commission considers and approves T&D losses at 27.5% for
the FY 2012-13 and sets T&D loss trajectory of 26.0 % for FY 2013-14 and 24.5%
for FY 2014-15. The Commission also approves the consumption n orms of 18
units per month for Kutir Jyoti (Rural - unmetered) and 1485 units per kW per
annum for IAS –I consumers.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 175
6.20 BSEB’s Own generation
Petitioner’s submission
6.20.1 BSEB owns and operated only one thermal generating plant i.e. Barauni Thermal
Power Station (BTPS) located at Barauni. The total installed capacity of the BTPS in
FY 2010-11 was 320 MW. The current status of all units of BTPS is summarized in
the table below for reference:
Table 106 : Current Status of different units of BT PS
Unit Unit capacity
(MW)
Date of
Commissioning Current status
I Retired N/A Retired since 17.02.1983
II Retired N/A Retired since 26.11.1985
III Retired N/A Retired since 05.10.1985
IV 50 9/11/1969 Shutdown since 24.04.1996
V 50 1/12/1971 Shutdown since 15.03.1995
VI 110 1/12/1984 Unit working at de-rated capacity; Dismantling of the Unit and its R&M work is planned from Jul’12
VII 110 31/03/1985 Under shutdown; R&M is underway; Expected to come in operation from Jul’12
6.20.2 The Board has also submitted that, Units I, II and III were retired long back i.e. before
1985. Out of the remaining four units, unit number IV and V are over 42 and 40 years
old respectively and have completed their useful economic life. These Units are
under shutdown for over 17 years. At present Unit VII is under shutdown and
undergoing Renovation & Modernization work for revival. Dismantling of the Unit VI
for R&M work is planned from July 2012 while R&M of Unit VII is expected to be
completed by June 2012.
6.20.3 During FY 2012-13, Unit VI will be taken out for R&M while R&M of Unit VII will be
completed. After R&M, unit will be under stabilization period and hence higher
specific oil consumption is requested for BTPS plant. Station heat rate is expected to
improve from FY 2010-11 level of 4103 kCal/kWh to 4000 kCal/kWh & 3700
kCal/kWh for FY 2011-12 & FY 2012-13 respectively. The Board has submitted that
the coal price in FY 2010-11 was Rs. 1823 per MT but in recent time it has witnessed
steep hike and has reached the level of Rs. 3317 per MT in month of August, 2011.
Hence coal price for FY 2011-12 & FY 2012-13 is expected to be on higher side from
the level of FY 2010-11. Other fuel related cost is projected in the ratio of other fuel
related cost to fuel cost in line with FY 2010-11.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 176
6.20.4 The assumptions and norms used by BSEB for projection of own generation
cost is summarized in the table below:
Table 107: Proposed Plant parameters & Fuel cost de terminants for BTPS
Parameters Units FY 2010-11 (Actual)
FY 2011-12 (RE)
FY 2012-13 (Projection)
Gross Units Generated MU 220.44 202.00 310.00
Auxiliary Consumption MUs 39.56 30.30 37.20
Net Generation MUs 180.88 171.70 272.80
Capacity MW 220 220 220
Derated Capacity MW 220 220 220
Plant Load Factor % 11.44 10.45 16.09
Auxiliary Consumption % 17.95 15.00 12.00
Station Heat Rate kcal/kWh 4,103 4,000 3,700
Sp. Oil Consumption ml/kWh 31.48 35.00 30.00
Gross Calorific Value of Coal kcal/kg 3,858 3,800 3,700
Calorific Value of Oil kcal/l 9,950 9,996 9,996
Overall Heat G Cal 904,534 808,009 1,146,999
Heat from Oil G Cal 69,046 70,671 92,961
Heat from Coal G Cal 835,488 737,337 1,054,038
Transit losses % - - -
Actual Oil Consumption kl 6,939 7,070 9,300
Actual Coal Consumption MT 216,560 194,036 284,875
Specific Coal Consumption kg/kWh 0.98 0.96 0.92
Price of Coal Rs./MT 1,823 2,600 3,250
Price of Oil Rs/kl 31,388 50,780 57,504
Coal Cost Rs. Cr. 39.48 50.45 92.58
Oil Cost Rs. Cr. 21.78 35.90 53.48
Fuel Cost Rs. Cr. 61.26 86.35 146.06
Other Fuel Related costs Rs. Cr. 5.06 7.13 12.06
Total Fuel Costs Rs. Cr. 66.32 93.48 158.13
Total Fuel Cost/Gross Generation Rs/unit 2.78 4.63 5.10
Total Fuel Cost/Net Generation Rs/unit 3.39 5.44 5.80
6.20.5 BSEB revises its estimate of fuel cost for FY 2011-12 to Rs. 93.48 Cr. against Rs.
80.46 Cr. as approved by the Commission. The Commission is requested to approve
the fuel cost of Rs. 158.13 for FY 2012-13 for generation of 310 MU from BSEB’s
own generating plant.
6.20.6 The Commission vide letter No. BERC- Tariff – 24/11- 825 dated 21st December,
2011 enquired about the generation related data and information of BTPS Barauni
such as actual generation, performance parameters, month wise projected
generation and performance parameters, reasons of non-achievement of
performance parameters during FY 2010-11 and FY 2011-12 (upto Nov’11) despite
investment under R&M head etc. The Commission also sought clarification on the
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 177
high generation cost of power from BTPS despite investment on R&M, actual coal
Transit loss and the basis for steep hike proposed for FY 2011-12 (RE) and FY 2012-
13 (Projected) in Coal and Oil price.
6.20.7 In response to this the BSEB vide letter No Com/Tar/161/2011-260 dated 09th
February, 2012 informed the Commission that during FY 2012-13, unit 6 will be
under operation for April and May and then it will undergo R&M work, while unit 7 will
start generating power from month of July. The BSEB has submitted the month-wise
projected power generation for FY 2012-13 as below:
Table 108: Month wise projected power generation fr om BTPS for FY 2012-13
Month Generation (MU)
PLF (%)
Auxiliary consumption
(MU)
SHR (kcal/kg)
Specific oil consumption
(ml/kwh)
GCV of coal (kcal/ kg)
April 10 13.23 1.750 3750 30 3500
May 10 12.80 1.750 3750 30 3500
June - - - - - -
July 5 6.11 1.00 3500 50 3500
August 20 24.44 3.00 3300 40 3500
September 30 37.88 3.60 3200 30 3500
October 35 42.77 4.20 3200 30 3500
November 40 50.51 4.75 3000 15 3500
December 40 48.88 4.75 3000 15 3500
January 40 48.88 4.75 3000 15 3500
February 40 54.11 4.75 3000 15 3500
March 40 48.88 4.75 3000 15 3500
6.20.8 On non-achievement of performance parameters during FY 2010-11 & FY 2011-12
(upto December 2011), the BSEB has submitted that it is due to non-completion of
R&M work of unit VII. Unit VI is in operation after restoration since July 2007. As per
schedule norms, its capital maintenance is now due. The R&M of unit VI will start
after completion of R&M work of unit. VII.
6.20.9 Further, BSEB has submitted that Unit VI of BTPS will goes for R&M in June, 2012
and Unit VII will come in operation after R&M in July, 2012. Unit VII will be in
stabilisation period and hence the operational parameters will be on higher side. The
main reason for such high fuel cost is cost of coal and cost of oil which has increased
substantially in recent period.
Table 109: Fuel cost trend submitted by BSEB
Sl. Financial Year Coal Price/MT (in Rs.) Oil Price/Kl (in Rs.)
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 178
Sl. Financial Year Coal Price/MT (in Rs.) Oil Price/Kl (in Rs.)
LDO FO
1 2008-09 1221.27 36915.33 29260.59
2 2009-10 1701.00 43808.72 26896.00
3 2010-11 1822.92 51369.98 30037.70
6.20.10 BSEB has informed the Commission that the Board do not have weighing machine in
working condition at their power plant and hence it is not possible to know actual coal
transit loss. In such scenario, coal transit loss is projected at 0% for FY 2011-12 & FY
2012-13.
Commission’s analysis
6.20.11 On analysis of details it was observed that BSEB has projected the GCV of 3700
kCal/kg for FY 2012-13 in its tariff petition whereas in the additional information vide
BSEB letter No Com/Tar/161/2011-260 dated 09th February, 2012, the Board has
projected GCV of 3500 kCal/ kg, whereas price of coal has increased, and value of
GCV lowered by 200kCal/kg, without stating any reason thereof. Similarly, the
operating parameter such as Auxiliary consumption, SHR etc. is also having
deviation w.r.t. ARR and tariff petition for FY 2012-13.
6.20.12 During the data validation process, it also came to the notice of the Commission that
the capacities of the Unit VI & Unit VII of BTPS have been de-rated. The capacity of
each unit is now 105 MW instead of 110 MW as submitted by BSEB. The
Commission was also informed that the BTPS do not have weighing machine in
working condition and hence they are not computing the actual coal transit loss. In
this regard the Commission directs the Board to expedite the work of installing and
commissioning of Weight-Bridge at all the generating stations and submit progress
report to the Commission. The Board is also directed to intimate the Commission
about the actual transit loss of coal with their FPPCA petition monthly.
6.20.13 In the Tariff Order for FY 2011-12, auxiliary consumption for BTPS was approved at
10% and the Commission decides to retain the same norm for FY 2012-13. The
specific oil consumption of BTPS is 30 ml/kWh which is too high. This issue has
already been settled in the previous Tariff Order. The Commission decides to retain
the same norm for FY2012-13. The Commission approves specific oil consumption of
10 ml/kWh.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 179
6.20.14 The Commission approves GCV of coal based on average of actual GCV of coal for
FY 2009-10 and FY 2010-11. For SHR , price of coal and price of oil the Commission
approves the values as submitted by the Petitioner keeping in mind the age of the
plant and current price trend of coal.
6.20.15 Based on the above parameters, the cost of generation of BTPS as determined by
the Commission for FY 2012-13 is given below:
Table 110: Approved Plant parameters of BTPS & fuel cost determinants for FY 2012-13
Parameters Units FY 2012-13 (Projection)
FY 2012-13 (Approved)
Gross Units Generated MU 310.00 310.00
Auxiliary Consumption MUs 37.20 31.00
Net Generation MUs 272.80 279.00
Capacity MW 220 220
Derated Capacity MW 220 210
Plant Load Factor % 16.09 16.85
Auxiliary Consumption % 12.00 10.00
Station Heat Rate kcal/kWh 3,700 3,700
Sp. Oil Consumption ml/kWh 30.00 10.00
Gross Calorific Value of Coal kcal/kg 3,700 3,969
Calorific Value of Oil kcal/l 9,996 10,000
Overall Heat G Cal 1,146,999 1,147,000
Heat from Oil G Cal 92,961 31,000
Heat from Coal G Cal 1,054,038 1,116,000
Transit losses % - -
Actual Oil Consumption kl 9,300 3,100
Actual Coal Consumption MT 284,875 281,215
Specific Coal Consumption kg/kWh 0.92 0.91
Price of Coal Rs./MT 3,250 2,857
Price of Oil Rs/kl 57,504 48,761
Coal Cost Rs. Cr. 92.58 80.34
Oil Cost Rs. Cr. 53.48 15.12
Fuel Cost Rs. Cr. 146.06 95.46
Other Fuel Related costs Rs. Cr. 12.06 8.06
Total Fuel Costs Rs. Cr. 158.13 103.52
Total Fuel Cost/Gross Generation Rs/unit 5.10 3.34
6.20.16 The Commission approves the fuel cost for BSEB’s ow n generation at Rs.
103.52 Cr. for FY 2012-13 for gross generation of 3 10 MU.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 180
6.21 Power Purchase
Petitioner’s submission
6.21.1 BSEB has projected the power purchase costs at Rs.5139 Crs including PGCIL
charges for purchase of 14,142 MU for FY 2012-13.
6.21.2 BSEB has submitted that it has firm allocations of power from thermal power plants
of NTPC, Hydel Power Plants of NHPC, and the hydel plants of Chukka & Tala
through PTC, hydel plants of BSHPC and thermal power plant of Kanti BUNL. In
addition to these, BSEB will also purchase power from co-generation by sugar mills,
Nepal, Short-term/ Medium-term and Renewable sources. BSEB has projected
energy availability for FY 2012-13 from BSHPC, Sugar Mills, Nepal and KBUNL
based on the energy drawl from April’2011 to August’ 2011 as there is no capacity
addition projected from these plants during FY 2012-13.
6.21.3 The Board in its petition has also intimated that it has started procuring 300 MW
short-term power purchase through NVVNL from September 2011 at the rate of Rs.
4.09 per kWh. BSEB is planning to sign medium-term contract with NVVNL for 450
MW from April’ 2012 at the rate of Rs. 4.31 per kWh. Considering the 85% of
availability, energy available during FY 2011-12 & FY 2012-13 is projected at the
level of 1304 MU and 3351 MU respectively from short term and medium term
purchase.
6.21.4 Based on the above, the projected energy availability of BSEB from the long term
sources is summarized in the table below:
Table 111: Power Purchase Cost Projected by the Pet itioner for FY 2012-13
Station Allocated Capacity (MW)
Units available (MU)
Per unit cost ( Rs/ kWh)
Total Cost (Rs Cr.)
NTPC Farakka 466 2,889 4.36 1,260
Talchar 398 2,449 2.84 696 Kahalgaon 439 2,670 3.63 969 KBUNL 110 321 3.65 117
NHPC Rangit 21 119 1.54 18 Teesta 109 549 1.28 70
PTC Chukka 80 543 1.53 83
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 181
Station Allocated Capacity (MW)
Units available (MU)
Per unit cost ( Rs/ kWh)
Total Cost (Rs Cr.)
Tala 260 909 1.78 162 Others NEA - 4 4.41 2 BSHPC 50 30 2.49 8 NSSM 18 29 3.35 10 Short/Medium Term 450 3,351 4.31 1,444 RE Purchase Solar 3 15.00 4 Other renewable 275 3.90 107 PGCIL Charges 190
Total 14,142 3.63 5,139
6.21.5 In response to the Commission query regarding new allocation from Central
Generating Station (CGS) or any upcoming generating station planned to be
commissioned during FY 2011-12 or FY 2012-13 vide Commission’s letter No.
BERC- Tariff – 24/11- 825 dated 21st December, 2011, the BSEB vide letter No
Com/Tar/161/2011-260 dated 09th February, 2012 informed the Commission that
BSEB has allocation of 50 MW from Farakka stage-III power plant of NTPC. It was
expected that power will be available from Farakka stage-III plant in FY 2011-12 but
due to fuel related issues currently there is no power availability to BSEB from the
plant. Apart from Farakka stage-III, there is no other Central sector allocation which
is expected to come up in FY 2011-12 & FY 2012-13. Hence, BSEB has not
projected any increase in power purchase allocation from the central sector
generating stations.
6.21.6 The Commission vide letter No. BERC- Tariff – 24/11- 825 dated 21st December,
2011 asked BSEB to provide actual cost data of power purchased during FY 2011-
12. BSEB provided the power purchase quantum and cost data for FY 2011-12 vide
letter No Com/Tar/161/2011-260 dated 09th February, 2012. The information
provided by BSEB has been used by the Commission for projecting power purchase
quantum and cost for FY 2012-13.
6.21.7 BSEB vide letter No Com/Tar/161/2011-260 dated 09th February, 2012 submitted
the Commission that there is typing mistake in writing methodology for projection of
power from Farakka, Talchar and Kahalgaon. BSEB has stated that it has been
projected based on the actual generation of April, 2011 to August, 2011 on pro-rate
basis.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 182
6.21.8 Further, BSEB vide letter No Com/Tar/132/2011-375 dated 1st March, 2012
explained the basis of considering the power purchase rate of Rs 4.09/ kwh and Rs
4.31/ kWh for short/medium term power purchase. On short-term and medium-term
power purchase rate BSEB has clarified as below:
Short term: BSEB vide NIT no. 171/PR/BSEB/2011 had invited bid for procurement
of 300 MW power under short term for the period 1st December 2011 to 29th
February 2012. In response to the said NIT only two bids from NVVNL and PTC were
received. After evaluation of the bids of M/s NVVNL and M/s PTC, NVVNL was the
L1 bidder who quoted tariff Rs. 4.416 per kwh at delivery point of BSEB within Bihar
periphery (based on billing as per REA) for supply of 300 MW power for the entire
period of contract. The matter was discussed in the CPC meeting no. 14/2011 held
on 04.11.2011. CPC had recommended negotiation of rate with NVVNL for suplly of
power for the entire contract period. In compliance of the direction of the CPC,
meeting with the representative of NVVNL and BSEB were held on 05.11.2011. After
negotiation NVVNL agreed to supply 300 MW power under short term for the period
1st December 2011 to 29th February 2012. Subsequently, Board vide resolution no.
8632 in the 542nd Meeting held on 08.11.2011 approved the procurement of power
from L1 bidder M/s NVVNL at agreed rate of Rs. 4.31 per KWh at the delivery point
of BSEB within Bihar Periphery for the period from 1st December 2011 to 29th
February 2012. LoI was issued by BSEB vide letter no 568 dated 26.11.2011 to
NVVNL for supply of 300 MW power under short term at agreed rate Rs. 4.31per
kwh. Energy Department, Govt. of Bihar vide its letter no. 81 dated 10.01.2012 has
also accorded approval for reimbursement of the financial loss to be incurred by
BSEB on account of the procurement of 300 MW power under short term.
6.21.9 On the issue of steps taken by BSEB for the compliance of the Renewable Purchase
Obligation, the BSEB vide letter No Com/Tar/132/2011-375 dated 1st March, 2012
informed the Commission that BSEB has signed Power Purchase Agreement with a
no. of developers for procurement of power through renewable energy based
generation. The list of the developers and the present status of operation of the plant
as submitted by BSEB are indicated below.
Table 112: Executed PPA with developer for power ba sed on renewable energy
Name of the Project Developer (Capacity in MW)
Location of the Project
Contracted capacity in MW/ MUs (Season/off
season)
Present Status
A. Bagasse based Cogeneration Plant
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 183
Name of the Project Developer (Capacity in MW)
Location of the Project
Contracted capacity in MW/ MUs (Season/off
season)
Present Status
New Swadeshi Sugar Mills (10 MW) Narkatiaganj,
West Champaran
5 / 8 MW In Operation
Bharat Sugar Mills (18 MW) Sidhiwalia, Gopalganj
10 / 13 MW In Operation
Harinagar Sugar Mills Ltd. (14.5 MW) Harinagar,
West Champaran
11 MW In Operation
HPCL Biofuels Ltd. (20 MW) Sugauli 13 / 16 MW In Operation
HPCL Biofuels Ltd. (20 MW) Lauria 13 / 16 MW In Operation
HV Distelleries & Sugar Mills Ltd. (25 MW)
Marhourah, Saran
14.54 / 18.05 MW Yet to be Commissioned
B. Biomass based Generation Plant
Vishnu Vishal Paper Mills (2 MW) 1 MW Yet to be Commissioned
C. Solar PV based generation Plant
Glatt Solution Pvt. Ltd., Kolkata (3 MW)
Nawada 3 MW, 4.94 MUs
Consent letter given by BSEB for
procurement of entire power 4.94 MUs offered by
developer. Solar PV/Solar Thermal
PPA is uploaded on the BSEB web site. Project developer
has been requested to sign PPA. Project
is expected to be commissioned in
2012-13.
6.21.10 In addition to the above, BSEB has also informed the Commission that they have
received various proposals for establishment of generation plants based on
renewable energy sources and their status is mentioned in the table below. BSEB
shall purchase power from these projects as per its Renewable Purchase Obligation
fixed by Hon’ble BERC and also under solar purchase obligation which is 0.25 % up
to FY 2012-13 and goes up to 3 % by the FY 2021-22. BSEB has also filed a petition
before BERC vide letter no. 349 dated 21.02.2012 in respect of the procurement of
power from Solar Energy Sources.
Table 113: Proposals received for setting-up renewa ble energy plants Name of the
Project Developer
Location of the Project
Capacity (In MW) Present Status
A. Biomass based Generation Project
Kumar Tech- Khizirsarai 6 MW Feasibility report for connectivity with
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 184
Name of the Project
Developer
Location of the Project
Capacity (In MW) Present Status
Bio, Gaya (Rice Husk)
road, Gaya BSEBsystem through 11 KV Gere Dehati feeder at 33/11 KV PSS at Magadh Engg. College, Gaya has been obtained from ESE / Supply,
Gaya. Recommendation of BREDA is still pending.
Emergent Venture India
Pvt. Ltd, Gurgaon
1 X 12 MW plant
proposed at 11 different places in
Bihar. Out of which 1 X 12
MW is proposed at Churi village, Gaya sadar.
12 MW
Feasibility report for connectivity with 132/33 KV Grid S/s, Chandauti through 132 KV
transmission line has been obtained from ESE, Transmission Circle, Gaya and also conveyed
to EVI, Gurgaon vide BSEB letter no. 355 dated 17.02.2011. The recommendation of BREDA is
awaited.
PTC-BERMACO Green Energy System Ltd., Navi Mumbai
26 places in different district of
Bihar.
12 MW
Feasibility report for connectivity of 1 X 12 MW Biomass based generating plant at Gaunaha, West Champaran with 132/33 KV Grid S/s at
Ramnagar has been obtained. BREDA vide its letter Memo no. 184 dated 06.02.2012 has given direction to BSEB to take appropriate action for signing of the PPA. In this regard,
BSEB vide its letter no. 335 dated 20.02.2012 has also requested PTC-BERMACO to submit
necessary approvals for signing of the PPA. B. Solar PV Power Plant
Glatt Solution Pvt. Ltd., Kolkata
Nawada
3 MW (4.94 MU / year to be supplied to BSEB)
Feasibility report for connectivity of the plant at 33 KV with 132/33 KV Grid S/s, Nawada had already been obtained. BREDA vide its letter
no. 647 dated 28.06.2012 has given recommendation letter to BSEB for signing of
the PPA with M/s Glatt Solution Pvt. Ltd. BSEB vide its letter no. 344 dated 21.02.2012 has requested the project developer to intimate convenient date for signing of the PPA and
submit requisite approvals/clearances & Performance guarantee as per PPA. The project
is expected to be commissioned during 2012-13.
Bhilwara Energy Limited, Noida
Muzaffarour
10 MW (offered to supply 16
MUs / year power to BSEB)
Recommendation of BREDA is awaited. The developer has not identified the location for installation of project in Muzaffarpur. SIPB approval for the project has been obtained.
CLARO, New Delhi
Gopalganj & Khagaria
1 X 5 MW each (Offered to supply 7.5
MU/year power to
BSEB from each project)
SIPB approval obtained. Recommendation of BREDA is awaited.
CHAUCER CAPITAL,
Barachatti, Bodhgaya
20 MW (offered to
SIPB approval obtained. Feasibility report for connectivity with BSEB 220/132/33 KV Grid S/s
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 185
Name of the Project
Developer
Location of the Project
Capacity (In MW) Present Status
Mumbai supply 36.278
MU/year power to BSEB)
at Bodhgaya at 33 KV has been given by ESE / trans. Circle, Gaya. Recommendation of
BREDA.
Avant Garde Re-Energy
Limited, Kolkata
Bhojpur, Saran, Bhabua
10 MW each
SIPB approval obtained vide Dept. of Industry, Govt. of Bihar letter no. 1307 dated 15.09.2010.
Project developer has not yet submitted recommendation of BREDA. Project developer has also not submitted letter with full details to BSEB to examine the technical feasibility for
connectivity of the project with BSEB Grid S/s or PSS.
C. Solar PV project under JNNSM scheme
Abacus Holding Private Limited,
Kolkata
Purnea, Bhagalpur,
Muzaffarpur, & Gaya
5 MW each
BSEB vide its letter no. 561 dated 02.04.2010 had requested the developer to provide certain
information like exact location of the plant, tentative distance of the plant from near by Grid
S/s of BSEB to examine feasibility for connectivity with the BSEB system under
JNNSM scheme. The response of the project developer is still awaited. The project developer
has also not submitted any information regarding selection of the project under JNNSM
scheme and registration from BREDA.
Commission’s analysis
6.21.11 The Commission considers power purchase from Farakka, Talchar and Kahalgaon
plants of NTPC and from KBUNL, after scrutiny of data and updated bills. The
Commission also finds generation projected by BSEB from other remaining plants as
reasonable and approves the same for FY 2012-13.
6.21.12 For determining per unit cost of generation for FY 2012-13, the Commission has
considered the actual per unit cost for FY 2011-12 (for the period of April, 2011 to
August, 2011) as submitted by the BSEB. The charges for usage of interstate
transmission system for FY2012-13 has been projected on the basis of actual of FY
2011-12 (for the period of April, 2011 to August, 2011) and the quantum of power
that are likely to be transmitted during FY 2012-13.
6.21.13 The revised tariff for Rangit and Teesta HEPs of NHPC as approved by the CERC for
the period FY 2008-09 to FY 2013-14 and made available to the BERC along with
FPPCA petitions has been considered in place of the rates proposed in the ARR/
tariff petition by the BSEB. It may be noted that the Commission intends to approve
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 186
the power purchase costs appropriately for the ensuing year so as to minimize any
subsequent charging of the same under FPPCA.
6.21.14 For renewable solar purchase, average of forbearance and floor price have been
considered for computing the generation cost and accordingly Rs. 15 per unit has
been considered. For determining purchase cost from other renewable sources same
methodology has been employed and accordingly price of Rs. 3.90 has been
considered by the Commission.
6.21.15 Plant-wise expected power purchase quantum and its total cost for FY 2012-13 as
approved by the Commission are given below:
Table 114: Approved Power Purchase Cost for FY 2012 -13
Station Units available (MU) Per unit cost ( Rs/ kWh)
Total Cost (Rs Cr.)
Projected by BSEB
Approved by Commission
Projected by BSEB
Approved by Commission
Projected by BSEB
Approved by Commission
NTPC
Farakka 2,889 2,889 4.36 4.36 1,260 1,258 Talchar 2,449 2,449 2.84 2.84 696 694 Kahalgaon 2,670 2,670 3.63 3.63 969 968 KBUNL 321 321 3.65 3.65 117 117
NHPC Rangit 119 119 1.54 2.60 18 27 Teesta 549 549 1.28 2.04 70 111
PTC
Chukka 543 543 1.53 1.53 83 83 Tala 909 909 1.78 1.78 162 161
Others NEA 4 4 4.41 4.41 2 2
BSHPC 30 30 2.49 2.49 8 8 NSSM 29 29 3.35 3.35 10 10
Short/Medium Term 3,351 3,351 4.31 4.31 1,444 1,442 RE Purchase Solar 3 3 15.00 15.00 4 4 Other renewable 275 275 3.90 3.90 107 107
PGCIL Charges 190 190
Total 14,142 14,142 3.63 3.67 5,139 5,182
6.21.16 The Commission approves the power purchase cost at Rs. 5182 Cr. for
purchase of 14,142 MUs for FY 2012-13.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 187
6.22 Energy Balance
Petitioner’s submission
6.22.1 Energy balance depicts the balance between total energy sales and T&D losses (i.e.)
energy requirement and energy available from own generation and power purchased
from various generating sources.
6.22.2 BSEB has projected inter-state transmission losses of 3.31% with a justification that it
is the actual central sector eastern region transmission losses. Further, BSEB vide
letter No Com/Tar/161/2011-260 dated 09th February, 2012 explained that the
Energy balance has been worked out based on the same methodology as adopted
by the Commission in its Tariff Order for FY 2011-12. For power availability, own
generation and net power purchase is taken into consideration. For power
requirement, sale to consumer, additional power sale to consumer, sale to Nepal and
sale through Bilateral/UI has been considered. T&D losses are applied on sale to
consumers of Bihar and Sale to Nepal only and not applied on the sale under
bilateral/UI while projecting for FY 2012-13. BSEB in the additional information vide
letter No Com/Tar/161/2011-260 dated 09th February, 2012 also informed the
Commission that Board sell power to Nepal Electricity Authority at 132 kV & 33 kV
and sale under UI is done at 220 KV voltage level. Board does not sell any power
under bilateral trade.
6.22.3 The projected gross energy requirement, energy availability and additional power
purchase required because of actual and approved losses for BSEB for FY 2012-13
is as follows:
Table 115: Proposed Energy Requirement & Energy Bal ance
Particulars Unit
FY 2012-13 (As per BERC
approved loss trajectory)
FY 2012-13 (As per BSEB Loss
Projection)
Energy Sales within State MU 7,313 7,313 Sale from additional Power Availability MU 266 266 Energy outside State (Nepal) MU 555 555 Sale in biteleral trade/UI MU 293 293
Total Sales MU 8,427 8,427 T&D Losses MU 3,085 5,652 T&D Losses % 28% 41.00% Energy Requirement MU 11,512 14,079
Energy Availability MU
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 188
Particulars Unit
FY 2012-13 (As per BERC
approved loss trajectory)
FY 2012-13 (As per BSEB Loss
Projection)
Own Generation MU 273 273 Total Power Purchase from long term sources MU 14142 14,142
Transmission loss in regional losses % 3.31% 3.31% Transmission loss in regional losses MU 335 335 Net Power Availability MU 14,079.00 14,079 Disallowable Power Purchase MU 2,567 -
6.22.4 BSEB has further submitted that for FY 2011-12 & FY 2012-13, BSEB projects to
under-achieve the T&D loss reduction as compared to the T&D loss trajectory
approved by the Commission hence BSEB is required to purchase additional power
of 2101 MUs for FY 2011-12 and 2567 MUs for FY 2012-13 as indicated in Energy
Balance. Based on the net power purchase rate, additional power purchase cost
works out to Rs. 754.26 Cr. and Rs. 955.74 Cr. for FY 2011-12 & FY 2012-13
respectively. Board has requested the Commission to reduce resource gap funding
to the extent of such disallowances and only remaining amount need to be
considered as subsidy available for consumers.
Commission’s analysis
6.22.5 The Commission approves the limits for energy requirement and energy availability
as given below for the FY 2012-13. Commission while approving the energy balance
considered the inter-state transmission losses based on average of past three years
an approved loss which is 2.51%:
Table 116: Approved Energy Requirement for FY 2012- 13 (in MU)
Particulars Unit
FY 2012-13 (As per BERC
approved Loss Approved)
FY 2012-13 (Approved by
BERC)
Energy Sales within State MU 7,313 7,512 Sale from additional Power Availability MU 266 266 Energy outside State (Nepal) MU 555 555
Sale in bi-lateral trade/UI MU 293 293 Total Sales MU 8,427 8,626
T&D Losses MU 3,085 3,161 T&D Losses % 27.50 27.50 Energy Requirement MU 11,512 11,786 Energy Availability MU Own Generation MU 273 279
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 189
Particulars Unit
FY 2012-13 (As per BERC
approved Loss Approved)
FY 2012-13 (Approved by
BERC)
Total Power Purchase from long term sources MU 14142 11,804 Transmission loss in regional losses % 3.31 2.51
Transmission loss in regional losses MU 335 296 Net Power Availability MU 14,079 11,786 Disallowable Power Purchase MU 2,567 2,338
6.23 Operation & Maintenance Expenses (O&M)
Employee Expenses
Petitioner’s submission
6.23.1 The employee cost comprises salaries and wages, dearness and other allowances,
pension, gratuity and staff welfare expenses etc.
6.23.2 BSEB submitted that they are calculating the terminal liabilities on provisional basis
and hence the amount of terminal benefits/retiral dues payable to the retired
employees is not treated as expenditure for the year. The amount actually paid is
adjusted against the provision made in the books of account for pension, gratuity and
leave encashment. BSEB has also submitted that, in view of the severe financial
crunch mainly on account of Tariff lower than Average cost of supply, BSEB has not
been able to maintain separate fund for retiral liabilities as per the provisions made in
the Annual Accounts hence, there has been a practice by BSEB to meet such
unfunded liability out of the revenue realized from sale of energy during the period of
incidence of discharge of such liabilities.
6.23.3 BSEB has accordingly submitted that the total expenditure under the head of
employee costs is 593.9 Cr. as per the annual accounts for FY 2010-11 and Rs.
168.99 Cr. paid to its retired employees as unfunded terminal liabilities in FY 2010-
11.
6.23.4 For projection of employee cost for FY 2012-13, BSEB has considered that the
employee expenses will increase by 10% in FY 2011-12 & FY 2012-13 from level of
FY 2010-11.
6.23.5 BSEB has also projected additional cost of Rs. 11.07 Cr. for new employees in FY
2011-12 and Rs. 32.62 Cr. for FY 2012-13.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 190
6.23.6 On the issue of payment against terminal liablility and creation of trust for employee
fund, BSEB vide letter No Com/Tar/132/2011-375 dated 1st March, 2012 informed
the Commission that an additional payout of Rs. 130.28 Cr. was made on account of
staff related liabilities & provisions as indicated in the schedule 28 on account of
unfunded terminal liabilities in FY 2010-11 & Rs. 42.11 Cr. was also paid as interest
on GSS, GPF and other staff deposits made on account of unfunded terminal
liabilities in FY 2010-11 as indicated in the schedule 12 of the annual accounts.
6.23.7 The BSEB, as additional information, has also submitted break-up of Rs.
21,91,35,96,307 & Rs. 20,61,07,70,574 shown under “Staff related liabilities and
provisions” in annual accounts of FY 2010-11 as below:
Particular As on 31.03.2010 As on 31.03.2011
GPF 5,195,223,312 5,237,987,358
CPS Pension scheme 24,328,113 62,275,478
Group saving scheme 772,069,528 784,117,511
Provision for garduity 2,433,955,673 2,277,524,606
Provision for leave encashment 1,312,803,309 1,305,341,732
Provision for pension 10,414,731,139 9,138,199,802
RPF Commissioner 2,930,236 2,930,236
Others 1,763,415,469 1,842,299,625
Total 21,919,456,779 20,650,676,348
6.23.8 On the matter of allocation of terminal benefit and head of expenditure during past
years, the Board has submitted that it has been deducting contribution towards GPF
and GSS from the salary of its employees. So far as the other heads of terminal
benefits such as pension, gratuity and leave encashment are concerned. BSEB has
also mentioned that the Board has been providing for such liabilities in the Accounts
to exhibit the same on accrual basis without keeping fund in any separate account to
the extent of such provision. As regards the allocation of deducted fund under GPF
and GSS, It may be clarified that the Board has always remain in cash deficit due to
lower tariff much below average revenue requirement and nil Govt. assistance as
grant/subsidy to the Board prior to FY 2006-07. i.e. before the advent of Regulatory
Commission and as such, it could not kept such deducted amount in a separate
account and in fact, the same utilised in operation expenditure through the working
fund of the Board. In this context, it may be mentioned that consequent upon the
bifurcation of the erstwhile BSEB, the Ministry of Power, Govt. of India vide its
notification dated 4th November, 2004 did not distribute the staff related liabilities and
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 191
provision stating that this would be apportioned in accordance with the Ministry of
Power, Govt. of India letter no. 42/9/2000-R&R (Vol-VI) dated 06.01.2004,
accordingly to which this liability will be borne on the basis of payment of pension on
employees/population ratio. BSEB has accordingly claiming employee cost on the
basis of payment through tariff petition before the Commission.
6.23.9 On the issue of creation of trust for employee fund, BSEB vide letter No
Com/Tar/132/2011-375 dated 1st March, 2012 has informed the Commission that a
trust in the name of “BSEB GPF” is already under operation in the Board. All the
payments under the head GPF is routed through this trust. However, balance in the
trust remains nil as the deducted amount from salary of the employees always
remains lower than the actual liability due for payment under GPF (Final withdrawal).
6.23.10 The employee cost for 2012-13 has been projected to be Rs. 933.22 Cr.. The details
of employee cost for FY 2010-11 (actual), FY 2011-12 (RE) and FY 2012-13
(Projected) is as given below.
Table 117: Employees Cost Proposed for FY 2012-13 ( Rs Cr)
Sl. Particulars FY 2010-11 (Actual)
FY 2011-12 (RE)
FY 2012-13 (Projected)
SALARIES & ALLOWANCES
1 Basic Pay + Special Pay 241.12
265.24
291.76 2 Dearness Pay
3 Dearness Allowance 97.95 107.74 118.52 4 House rent Allowance 19.84 21.83 24.01 5 Fixed medical allowance 2.15 2.36 2.60 6 Medical reimbursement charges 0.81 0.90 0.99 7 Over time payment 4.49 4.93 5.43 8 Other allowances 4.90 5.39 5.93
9 Generation incentive - - - 10 Bonus - - - 11 Total 371.26 408.39 449.23 12 Leave encashment 15.58 17.14 18.85 13 Gratuity 16.50 18.16 19.97
14 Commutation of Pension - - - 15 Workman compensation 0.33 0.36 0.40 16 Ex- gratia - - 0.01
17 Total 32.41 35.66 39.22 Pension Payment
18 Basic Pension 184.84 203.32 223.66 19 Dearness Pension - - - 20 Any other expenses 1.97 2.17 2.39 21 Total 186.81 205.50 226.05
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 192
Sl. Particulars FY 2010-11 (Actual)
FY 2011-12 (RE)
FY 2012-13 (Projected)
22 Total (11+17+21) 590.49 649.54 714.50 23 Payment made for unfunded liabilities 172.39 189.63 208.59
24 Increase in employee cost Due to New Recruitments - 11.07 32.62
25 Grand Total (22+23+24) 762.88 850.24 955.71 26 Less: Employee cost capitalises 18.58 20.44 22.48 27 Net Employee Cost 744.30 829.80 933.22
Commission’s analysis
6.23.11 The Commission in the Tariff Order for FY 2011-12 had stated that:
“4.7.12. So far the contribution of the employees towards GPF and GSS is
concerned; this is not a part of employee cost. This amount is deducted from the
salary of the employees and should be deposited in a separate fund to be governed
by a Trust in which both BSEB and its employees are represented. Any investment
out of this fund has to be with the approval of the Trust.”
“4.7.13. The Commission directs BSEB to report the steps taken towards creation
of the trust. The Commission shall be compelled to take appropriate action, if this
direction is not complied with immediately.”
6.23.12 The Commission has already directed BSEB to create separate trust for making
payments for terminal liabilities in its Tariff Order for FY 2006‐07 as reproduced
below:
“The BSEB shall take steps to invest contribution of employees towards pension
etc., through a Trust and make arrangements to pay the pension, gratuity etc., from
the earnings of the investments through the Trust.”
6.23.13 Accordingly, it is apparent that BSEB has utilised the amounts available in the fund
created towards GPF and GSS contribution towards meeting its day to day expenses
i.e. for the purpose of funding its working capital requirements. Accordingly,
permitting these expenses to be passed on to the consumers shall mean that the
consumers have to bear the burden for the past financial mismanagement of the
Board. The Commission is of the view that such liabilities on account of past issues
should be funded by BSEB through its own means and should not be passed on to
the consumers at this point of time. The regulations anyways provide for normative
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 193
working capital interest to be passed on to the consumers thus meeting the working
capital requirements of the licensee for the year. However, the Commission has
always been allowing the present provision for existing employee on accrual basis
6.23.14 The Commission is of the opinion that since the creation of the Commission, tariff for
BSEB has been approved by the Commission based on the justified expense after
prudence check by the Commission. The tariff has always been designed by the
Commission so as to recover the ARR of the BSEB. Apart from that the State
Government support for power purchase has also contributed to reduce the gap and
the tariff has been approved based on the same. So the Commission does not agree
with the justification made by BSEB that in could not create trust for employee for
their terminal benefit because the tariff is lower than the Average cost of supply.
6.23.15 The Commission has projected the employee cost of FY 2012-13 separately for each
of the generation, transmission and distribution function considering the figures of
audited annual accounts of FY 2010-11 as base value. The Commission in current
economic situation considers escalation rate of 9.56% appropriate for determining
employee cost for FY2012-13 for each function. The Commission has allowed the
additional cost of Rs. 32.62 Cr. for new employees during FY 2012-13 and distributed
the same in the ratio of employee cost of each function based on the audited
accounts of FY 2010-11. Based on the above, the Commission approves employee
cost for FY 2012-13 as depicted in the table given below:
Table 118: Function-wise employee Cost approved for FY 2012-13 (Rs Cr.)
Particulars Generation Transmission Distribution Total
Employee Cost 38.64 86.24 600.17 725.05
Effect of new employees 1.74 3.88 27.00 32.62
Less : Capitalization 1.19 2.65 18.46 22.30
Net Employee Cost 39.19 87.47 608.71 735.37
% Share 5.33% 11.89% 82.78% 100.00%
6.23.16 The Commission approves the Employee expenses of Rs. 735.37 Cr. as against
Rs. 933.22 Cr. projected by BSEB for FY 2012-13.
Repair & Maintenance Expenses (R&M)
Petitioner’s submission
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 194
6.23.17 BSEB has projected R&M expenses of Rs. 110.68 Cr. for FY 2012-13. BSEB has
projected that the R&M expenses will increase by 10% in FY 2012-13 from level of
FY 2011-12
Table 119: R&M costs submitted by Petitioner for FY 2012-13 (Rs Cr)
Particulars FY 2010-11 (Actual)
FY 2011-12 (RE)
FY 2012-13 (Projected)
Plant & Machinery 34.56 43.16 47.47 Building 2.20 7.27 8.00 Hydraulic works 2.93 0.33 0.36 Civil Work 0.18 2.88 3.17 Line cable & network 17.10 35.03 38.53 Vehicles 0.09 0.20 0.22 Furniture & fixtures 0.20 0.04 0.05
Office equipments 0.14 0.15 0.16 Operating expenses - 5.94 6.54
Total expenses 57.40 95.00 104.50 Add cost of materials procured from Board's Hdqrs - - - Net Expenses 57.40 95.00 104.50
Cost of water & Other Misc. Charges 5.11 5.62 6.18 Total R&M Expenses charged 62.51 100.62 110.68
Commission’s analysis
6.23.18 The Commission had already approved significant increase for FY 2011-12 during
the past Tariff Order with the expectation that higher R&M cost will help BSEB in
improving operational efficiency.
6.23.19 The Commission has computed the R&M cost separately for Generation,
Transmission and Distribution functions for FY 2012-13 considering the actual
function-wise break-up data as per the annual accounts of the Board for FY 2010-11
as base value. The Commission in current economic situation considers escalation
rate of 9.56% appropriate for determining R&M cost for FY2012-13. Based on the
same, the Commission approves R&M cost for FY 2012-13 as depicted in the table
given below:
Table 120: Function-wise approved R&M costs for FY 2012-13 (Rs Cr) Particulars Generation Transmission Distribution Total
R&M Cost 11.07 14.05 78.96 104.09 Add : Water & Misc charges 6.18 - - 6.18
Total 17.25 14.05 78.96 110.27 % Share 15.65% 12.74% 71.61% 100.00%
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 195
6.23.20 The Commission approves the R&M expenses of Rs. 110 .27 Cr. as against
projection of Rs. 110.68 Cr. by BSEB for FY 2012-13 .
Administration & General Expenses (A&G)
Petitioner’s submission
6.23.21 BSEB has projected A&G cost on the 3 years CAGR based on the audited data of
A&G expenses for the period FY 2007-08 to FY 2010-11 which is 12%. and thus the
A&G expenses post capitalization are projected at Rs. 53.49 Cr. & Rs. 76.88 Cr. for
FY 2011-12 & FY 2012-13 respectively.
Table 121: A&G costs submitted by Petitioner for FY 2012-13 (Rs Cr
Particulars FY 2010-11 (Actual)
FY 2011-12 (RE)
FY 2012-13 (Projected)
Rent, rates & taxes 0.50 0.56 0.63
Insurance - - -
Telephone, postage &Telegrams 0.99 1.11 1.25
Legal Charges 0.98 1.10 1.23
Audit Fees 3.25 3.64 4.08
Consultancy fees - - -
Technical fees 0.01 0.01 0.01
Other professional charges - - -
Conveyance & travel expenses 4.99 5.59 6.26
Others 29.39 32.92 36.87
Freight 0.17 0.19 0.22
Total expenses 40.29 45.13 50.54
Less Capitalised 1.46 1.64 1.83
Net expenses 38.83 43.49 48.71
Add Prior period - - -
Total A&G Expenses 38.83 43.49 48.71
Metering, Billing and collection - 10.00 28.17
Total A&G Expenses 38.83 53.49 76.88
6.23.22 BSEB projected that the outsourcing of all metering and billing related activities for all
its consumers in FY 2012-13 at the rate of Rs 4.94 per consumer would cost
additional Rs. 28.17 Cr. during FY 2012-13.
Commission’s analysis
6.23.23 The Commission has approved Rs. 28.17 Cr. on account of cost associated with
outsourcing of metering and billing related activities during FY 2012-13.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 196
6.23.24 The Commission in current economic situation considers escalation rate of 9.56% (at
Wholesale Price Index rate) appropriate for determining R&M cost for FY2012-13.
Based on the same, the Commission approves R&M cost for FY 2012-13 as depicted
in the table given below:
Table 122: Function-wise approved A&G costs for FY 2012-13 (Rs Cr)
Particulars Generation Transmission Distribution Total
A&G Cost 1.42 5.25 41.70 48.37
Less : Capitalization 0.05 0.19 1.51 1.75
Add : Metering related cost - - 28.17 28.17
Total 1.36 5.06 68.36 74.78
% Share 1.82% 6.77% 91.41% 100.00%
6.23.25 The Commission approves the A&G expenses of Rs. 74. 78 Cr. for FY 2012-13
against the Petitioner claim of Rs 76.88 Cr.
Total Operation & Maintenance Cost
6.23.26 The total O&M expenses for each of the Generation, Transmission and Distribution
functions, approved by Commission for FY 2012-13 are as given in the table below:
Table 123: Function-wise approved O&M costs for FY 2012-13 (Rs Cr)
Particulars Generation Transmission Distribution Total
Employee Cost 39.19 87.47 608.71 735.37
R&M Cost 17.25 14.05 78.96 110.27
A&G Cost 1.36 5.06 68.36 74.78
Total O&M Cost 57.81 106.58 756.03 920.42
6.24 Capital Expenditure
Petitioner’s Submission
6.24.1 BSEB has taken up R&M works of Unit VI and VII under the RSVY scheme
sanctioned by the Planning Commission, Government of India under non-refundable
grant. Capacity extension of Muzaffarpur Thermal Power Plant (2x195 MW) &
Barauni TPS (2X250 MW) has been sanctioned by the State government. BSEB has
also undertaken various transmission network capacity addition, augmentation and
improvement projects for achieving its objective of making available reliable power
across the State. BSEB is already implementing many schemes for strengthening,
augmenting and expanding its distribution network. For FY 2011-12 & FY 2012-13
BSEB would support on-going schemes of Distribution strengthening program. The
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 197
on-going schemes include transformer replacement, procurement of new
transformers, and replacement of old conductor of HT & LT line, construction of new
HT & LT lines, PSS & bays.
6.24.2 BSEB has furnished function wise / scheme wise details of the proposed capital
expenditure for FY 2011-12 & FY 2012-13 as given in the table below:
Table 124: Planned Capital Expenditure proposed by BSEB for FY 2012-13
Sl. Particulars FY 2010-11 (Actual)
FY 2011-12 (RE)
FY 2012-13 (Projected)
1 Generation a) Ongoing schemes 340.66 1,181.21 1,296.50 b) BRGF 14.40 153.00 295.04 Sub Total 355.06 1,334.21 1,591.54 2 Transmission RSVY a) BRGF - 450.13 500.00 b) Mahatma Gandhi Setu Cable crossing 14.67 13.96 13.61 c) Ongoing Scheme 0.57 131.26 98.16 Sub Total 15.24 595.35 611.77 3 Distribution a) Ongoing Scheme 70.89 595.42 712.07 b) APDRP 68.88 68.66 -
c) R-APDRP 0.05 96.82 356.81 d) BRGF - - 250.00 e) ADB - 20.00 55.00 f) PMGY 1.18 0.80 6.07 g) MNP - 0.50 10.66
h) Tal Diara 0.38 1.00 1.92 i) Border Area 0.04 0.05 0.43 j) ACA 21.94 76.75 90.00
k) RGGVY 237.11 315.28 489.00 l) Deposit Work 24.57 12.93 13.00
m) Others works 172.14 52.93 53.00 n) Others Capital works 43.13 92.50 110.60 Sub Total 640.31 1,333.63 2,148.57 Total 1,010.61 3,263.19 4,351.88
6.24.3 The capitalization rate of capital expenditure and opening balance of CWIP was 30%
in FY 2009-10 and 43% in FY 2010-11. BSEB has considered capitalization rate of
43% for FY 2011-12.
6.24.4 BSEB in the additional information vide BSEB letter No. Com/ Tar/161/2011-260
dated 09.02.2012 informed the Commission that capital expenditure for FY 2011-12
& FY 2012-13 has been projected based on Budget of BSEB. BSEB has submitted
the summary of loan received during FY 2011-12 till date as shown below:
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 198
Table 125: Details of loan received with sanction l etter
Sl. Name of the scheme Total value of the scheme
(Rs. Cr.)
Amount released to BSEB (Rs.
Cr.)
Date of order for
release of funds to BSEB
1 Bihar power sector development programme 708.00 10.00 28.06.2011
2 BTPS Extension 3,133.17 100.00 05.07.2011
3 R-APDRP Part A 59.00 28.50 05.08.2011
4 Navinagar TPS (3x600 MW) 12,964.57 187.35 05.08.2011
5 Muzzafarpur Sitamadi Transmission tower height
6.15 4.15 10.08.2011
6 Muzzafarpur Sitamadi Transmission line 1.72 1.72 10.08.2011
7 Tehta, Imamganj 132/33 kV grid Substation 51.20 27.67 10.08.2011
8 Construction of 40 nos. of 33/11 kV substations 4,207.31 29.07 10.08.2011
9 Ekma (Saran) 132/33 kV substation and associated lines 5.10 3.10 10.08.2011
10 Construction of Janhada 132/33 kV substation 25.00 10.00 10.08.2011
11 Construction of Simutala 33/11 kV substation 5.20 4.20 10.08.2011
12 Construction of 5 substation in Jahanbad district 17.50 16.50 10.08.2011
13 Construction of 40 nos. of 33/11 kV substations 53.50 15.45 10.08.2011
14 APDRP 129.03 20.00 04.11.2011
15 Cent percent metering 102.50 10.00 28.11.2011
16 Construction of 33/11 kV substation in Ekangsarai and Bairgania
9.30 2.00 30.12.2011
17 Construction of 33/11 kV substation in Jamalpur chaksarvar
4.45 1.00 30.12.2011
18 Construction of 33/11 kV substation in Narayanpur 5.90 1.00 28.12.2011
19 Construction of 33/11 kV substation in Saidpur 4.02 1.00 30.12.2011
20 Construction of 33/11 kV substation in Jale 4.15 1.00 28.12.2011
21 Electrificatoin of Akbarpur Village 0.09 0.09 30.12.2011
22 Electrification of 4 villages in Saran District 0.15 0.15 30.12.2011
23 Construction of 33/11 kV substation in Pandrak
5.50 4.50 28.11.2011
24 Consumer metering 102.50 4.00 10.01.2012
25 Distribution transformers 150.21 10.00 17.01.2012
26 Replacement of distribution transformers 77.93 8.00 17.01.2012
27 Capacity enhancement of distribution transformers 30.23 10.00 17.01.2012
28 Replacement of distribution transformers 67.84 8.00 17.01.2012
Total 21,931.22 518.45
Commission’s View
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 199
6.24.5 As per the licence conditions para 51 of chapter 5 of BERC (Grant of licence for
Distribution of electricity) Regulations, 2007, BSEB is required to furnish details of the
proposed schemes expenditure before commencement of the project with description
of assets and its usability in furthering the efficiency or growth in the business of the
Board. Further, BSEB should seek prior approval of such capital expenditure from
the Commission. In the absence of the approval, the Commission may disallow
corresponding depreciation and interest cost.
6.24.6 After analysing the details submitted by BSEB, Commission vide letter no. BERC-
Tariff – 24/11- 825 dated 21st December, 2011 sought clarification on sources of
funding like Loans, Capital Grant, Consumer Contribution or Own Funding. In reply
BSEB vide letter No Com/Tar/161/2011-260 dated 09th February, 2012 provided
details of sources of funding. The funding details of various schemes as provided by
BSEB are as given in the table below:
Table 126: Funding details proposed by BSEB for FY 2012-13)
Sl. Particulars FY 2012-13 (Projected)
Capital Expenditure Grant Consumer
Contribution Borrowings
1 Generation a) Ongoing schemes 1,296.50 20.00 - 1,276.50
b) BRGF 295.04 295.04 - -
Sub Total 1,591.54 315.04 - 1,276.50
2 Transmission
a) BRGF 500.00 - -
b) Mahatma Gandhi Setu Cable crossing 13.61 - 13.61
c) Ongoing Scheme 98.16 - - 98.16
Sub Total 611.77 500.00 - 111.77
3 Distribution a) Ongoing Scheme 712.07 - - 712.07
b) APDRP - - - -
c) R-APDRP 356.81 - - 356.81
d) BRGF 250.00 250.00 - -
e) ADB 55.00 - - 55.00
f) PMGY 6.07 - - 6.07
g) MNP 10.66 - - 10.66
h) Tal Diara 1.92 - - 1.92
i) Border Area 0.43 - - 0.43
j) ACA 90.00 - - 90.00
k) RGGVY 489.00 - - 489.00
l) Deposit Work 13.00 - 13.00 -
m) Others works 53.00 - 53.00 -
n) Others Capital works 110.60 -
110.60
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 200
Sl. Particulars FY 2012-13 (Projected)
Sub Total 2,148.57 250.00 66.00 1,832.57
Total 4,351.88 1,065.04 66.00 3,220.84
6.24.7 As in the power projects such as Muzaffarpur Thermal Power Plant (2x195 MW) &
Nabhinagar Super Thermal Power Plant (3 x 660 MW); BSEB is the equity partner
with NTPC for which separate tariff will be determined by the appropriate
Commission, So the Commission has not considered the capital expenditure under
thses plants for computation of GFA, interest and finance charges and depreciation.
With respect to capacity extension of Barauni TPS (2X250 MW) which is expected to
be commissioned in June 2014, i.e. FY 2014-15, GFA, interest and finance charges
and depreciation has not been considered in FY 2011-12. In light of the above, the
Commission has only considered the capital expenditure of Rs. 152 Cr. for FY 2011-
12 and Rs. 295 Cr. for FY 2012-13, as grant under RSVY scheme for R&M of BTPS,
for the purpose of computation of GFA.
6.24.8 Based on the details provided by BSEB, the Commission considers the following
funding pattern for proposed capital expenditure for computation of allowable interest
based on the percentage described in paragraph 6.24.10 and 6.24.11.
Table 127: Funding pattern considered by Commission for FY 2012-13
Sl. Particular Generation Transmission Distribution Total
1. Capital Expenditure 295.00 611.77 2,148.57 3,055.34
2. Grant 295.00 500.00 250.00 1,045.00
3. Consumer contribution - - 66.00 66.00
4. Borrowings - 111.77 1,832.57 1,944.34
6.24.9 BSEB has proposed significantly high capital expenditure for FY 2011-12 & FY 2012-
13, if the capital expenditure incurred by BSEB in past years is considered. However,
the Commission for this order has considered the capital expenditure proposed by
BSEB as it has able to demonstrate that equivalent amount funding is available for
carrying out the proposed capital expenditure.
6.24.10 The capitalization of the above proposed capital expenditure is considered in
accordance with the capitalization schedule given in the table below:
Table 128: Capitalization schedule for proposed cap ital expenditure Sl. Particulars 1st year 2nd year 3rd year 4th year
1 Generation 50% 50% 20% 20% 2 Transmission 25% 30% 30% 15% 3 Distribution 25% 25% 25% 25%
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 201
6.24.11 Further for computation of additions to GFA from capitalization of CWIP, the closing
balance of FY 2011-12 and the capitalization rate as given in the table below has
been considered which is in line with the methodology adopted by the Commission in
the Tariff Oreder for FY 2011-12.
Table 129: Capitalization schedule for CWIP Sl. Particulars FY 2012-13 FY 2013-14 FY 2014-15
1 Generation 30% 30% 40% 2 Transmission 30% 30% 40% 3 Distribution 30% 30% 40%
6.24.12 To ascertain function wise asset addition due to capitalization of CWIP, the closing
balance of CWIP reflected in the annual accounts of FY 2010-11 was segregated into
the three functions based on the contribution of these functions to the total GFA at
the end of FY 2010-11
6.24.13 Accordingly the addition to the assets from loans, grants and CWIP was computed
for FY2011-12 and FY2012-13
6.24.14 The GFA levels as approved by the Commission for FY2012-13 are given in the table
below:
Table 130: Approved GFA by Commission FY 2012-13 (R s. Cr.)
Sl. Particulars Generation Transmission Distribution Total
1 Opening GFA (FY 2012-13) 444.12 962.56 3,392.75 4,799.43
2 Addition during the year 257.34 405.35 1,148.02 1,810.71
3 Closing GFA (FY 2012-13) 701.47 1,367.90 4,540.77 6,610.14
6.25 Depreciation
Petitioner’s Submission
6.25.1 BSEB has computed depreciation for FY 2011-12 & FY 2012-13 by calculating
depreciation on existing assets at weighted average rates of FY 2010- 11. BSEB has
not considered depreciation on assets which are not in use. BSEB has also not
considered depreciation on assets which have depreciated upto 90% of its
acquisition cost.
6.25.2 BERC (Terms & Conditions for determination of Tariff) Regulation, 2007 provides
that the depreciation shall be calculated annually, based on the straight line method
over useful life of the asset and at rates prescribed by the Central Electricity
Regulatory Commission. Assets capitalized during the year are distributed in various
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 202
heads in the ratio of opening gross block of the respective year. For the new assets
capitalized during the year, the depreciation for each of the functions has been
projected on the basis of depreciation rates specified in CERC’s terms and condition
of determination of tariff regulation, 2009.
Table 131: Depreciation charges proposed by BSEB (R s. Cr.) Sl. Particulars FY 2010-11 (Actual) FY 2011-12 (RE) FY 2012-13 (Projected) 1. Generation 2.43 21.84 69.34 2. Transmission 14.57 22.78 41.69 3. Distribution 72.01 109.59 169.63 4. Total 89.00 154.21 280.66
Commission’s View
6.25.3 The Commission has considered closing balance GFA as achieved in FY 2011-12 as
per the annual accounts of that year. The Commission has thereafter considered
asset additions of Rs. 1810.7 Crores for FY 2012-13. This addition is as per the
explanation provided in the earlier paragraph at 6.24.14.
6.25.4 It is noted here that the Clause 17 of Central Electricity Regulatory Commission
(Terms and Conditions of Tariff) Regulations, 2009 specifies that depreciation shall
be calculated annually based on Straight Line Method at rates specified in Appendix -
III of the said regulations. Provided that, the remaining depreciable value as on 31st
March of the year closing after a period of 12 years from date of commercial
operation shall be spread over the balance useful life of the assets.
6.25.5 For old assets where age-wise bifurcation has not been provided by BSEB, the
Commission has used the weighted average rate of deprecation achieved in FY
2010-11. For new assets created during FY 2012-13, rates prescribed by CERC
have been applied by the Commission to determine deprecation allowable for FY
2012-13. Function wise computation of depreciation has been carried out by the
Commission based on projected fixed asset for each function during the FY 2012-13.
6.25.6 Based on approved GFA and capitalization considered during FY 2010-11, the
Commission calculated the depreciation for FY 2012-13. However, the depreciation
on the assets created out of consumer contribution, grant has been deducted from
the gross depreciation to arrive at the net depreciation charge for BSEB. The
computation of the depreciation on the assets created out of consumer contribution,
grant is based on the average of ratio of ‘Grant and contribution’ and ‘GFA’ for past
three (3) years. .
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 203
Table 132: Function wise Depreciation approved for FY 2012-13 (Rs Cr) Sl. Particulars Generation Transmission Distribution Total
1 Gross Depreciation 15.41 38.41 170.91 224.73
2 Net Depreciation 11.94 29.59 118.24 159.77
6.25.7 The Commission approves the depreciation of Rs. 159 .77 Cr. as against Rs.
280.66 Cr. projected by BSEB for FY 2012-13.
6.25.8 Directives have been given by the Commission in its previous Tariff Orders for
preparation of asset register. However, BSEB has not complied with this directive.
The Commission reiterates its directive to prepare the asset register and report
status of compliance by 30th June, 2012followed by quarterly progress report. BSEB
should compute depreciation as well as interest on loan based on the asset register
in the next tariff petition.
6.26 Interest & Finance Charges
Petitioner’s Submission
6.26.1 For calculation of Interest and Finance charges for FY 2011-12 & FY 2012-13, BSEB
has considered the closing balance of loans of FY 2010-11 used for funding capital
expenditure and the new loans proposed to be drawn during the year as per the
indicated capitalization schedule of the proposed capital expenditure.
6.26.2 Based on the capitalization and its funding pattern, additional loan requirement has
been worked out for FY 2011-12 & FY 2012-13. BSEB has assumed that all
additional funding requirements will be met by the State Government at the rate of
13% per annum.
6.26.3 Total repayment of loans has been considered equal to the depreciation proposed for
the year. Repayment of Loans other than state plan loans is proposed at 10% of the
opening loan amount. The repayment of state plan loans have been considered
equivalent to depreciation amount left after repayment of non-state loans.
6.26.4 For existing loans, prevailing interest rate has been considered while for new loans
interest rate of 13% is proposed. Based on the same, BSEB revises its estimate of
Interest and Finance Charges for FY 2011-12 to Rs. 464.31 Cr. as against Rs.149.01
Cr. approved by the Commission. BSEB projects Interest and Finance Charges for
FY 2012-13 at Rs. 705.72 Cr.. Function-wise Interest & financial charges calculated
are as shown in table below:
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 204
Table 133: Proposed Interest & Financial Charges fo r FY 2012-13
Sl. Particulars FY 2010-11 (Actual) FY 2011-12 (RE) FY 2012-13 (Projected)
1 Generation 50.80 100.89 205.13 2 Transmission 49.57 60.33 77.11 3 Distribution 230.12 303.10 423.48 4 Total 330.49 464.31 705.72
Commission’s View
6.26.5 The Commission vide letter no. BERC-Tariff-24/11-88 dated 27th January, 2012
sought details of the loans and the corresponding assets created out of these loans.
Since Interest is payable only on loans used for creating usable assets; the
Commission has excluded loans raised for working capital or to meet revenue deficit
included for interest claimed by BSEB
6.26.6 In absence of desired information and identification of loans used for creation of
assets, the Commission decided to adopt an indirect methodology to compute
outstanding balance of loans as on 1st April, 2012 used for asset creation. In the
absence of the adequate data with BSEB the Commission has considered the
repayment during the year as per the Central Electricity Regulatory Commission
(Terms and Conditions of Tariff) Regulations, 2009 reproduced as below:
“The repayment for the year of the tariff period 2009-14 shall be deemed to be equal
to the depreciation allowed for that year”
Closing balance of GFA as on 31st March 2012 (as per annual accounts) provides
the value of assets created out of all possible sources of funding. If from this balance
all the assets created from consumer contribution and grants are excluded then the
balance assets have been funded from the loans raised till date.
6.26.7 Further if the accumulated depreciation as on date is excluded then balance will be
the assets funded out of existing loans. The accumulated depreciation can be
considered as proxy for the loans repaid till date. The Commission has used this
concept to compute opening level of loan as on 1st April, 2012 used for the creation
of fixed assets. The Commission considers this approach reasonable in the absence
of supporting evidence of utilization of loans for asset creation and its usability in
business. However, Commission may revisit this computation on getting the actual
details from BSEB at the time of review/ true-up based on audited accounts of FY
2012-13.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 205
6.26.8 The additional loan to the extent of asset capitalized during the year can only be
considered for interest cost computation. Interest cost on remaining loan amount
should be capitalized and considered as part of capital cost of the asset. This is in
accordance with the BERC (Terms and condition for determination of Tariff)
Regulation, 2007, which provides for interest only on assets which are capitalized
and not on the entire capital expenditure incurred during the year.
6.26.9 Assets capitalized during the year can be funded through grant, consumer
contribution and borrowing. Interest is payable on loans equivalent to capitalized
assets funded through borrowings only. To determine this additional loan the
proposed capitalization is segregated in the ratio of existing levels of grant, consumer
contribution and borrowings.
6.26.10 The approved depreciation during the year is used as the repayment amount during
the year.
6.26.11 Interest rate of 13% as proposed by BSEB has been verified from the sanction letters
issued by the State Government and the proposed rate was found in line with the
interest rate charged by the State Government. The Commission has computed the
interest and finance charges for each function on the basis of the loan availed by the
Board for the respective function.
6.26.12 The repayement of the loan during the tyear has been computed at 10% of the
outstanding loan at the beginning of the year as per the methodology adopted in
Tariff order for FY 2011-12.
6.26.13 The Commission has considered the closing balance of loan for FY 2011-12 (as per
review Order for FY 2011-12) as the opening loan for FY 2012-13 and has computed
the interest on loan for FY 2012-13. The Commission has computed the interest on
loan as per the methodology adopted in Tariff order for FY 2012-13, Based on the
above, interest on loan for FY 2012-13 as approved by Commission based on
capitalization considered during the year is given in the table below:
Table 134: Approved revised estimate of Interest & Finance Charges for FY 2012-13 (Rs Cr)
Sl. Particulars FY 2011-12 (Approved in revised estimate of
FY 2011-12) Approved for FY 2012-13
1 Opening Loan 471.49 983.33 2 Addition of Loan 558.99 1,072.94 3 Repayment of Loan/Depreciation 47.15 98.33
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 206
Sl. Particulars FY 2011-12 (Approved in revised estimate of
FY 2011-12) Approved for FY 2012-13
4 Closing Loan 983.33 1,957.93 5 Interest rate 13.00% 13.00% 6 Interest on Loan 94.56 191.18
6.26.14 Based on the interest finance charges of FY 2010-11 as per audited annual accounts
of BSEB, the interest cost for Generation, Transmission and Distribution business of
BSEB has been worked out.
Table 135: Approved revised estimate for Interest & Financial Charges for FY 2012-13 Sl. Particulars Approved in FY 2012-13 1 Generation 41.14 2 Transmission 28.68 3 Distribution 121.37 4 Total 191.18
6.26.15 The Commission approves the interest cost of Rs. 19 1.18 Cr. as against Rs.
705.72 Cr. projected by BSEB for FY 2012-13.
6.27 Interest on Working Capital
Petitioner’s Submission
6.27.1 BSEB has proposed interest on working capital in accordance with the applicable
regulations notified by the Commission. The considerations for computing working
capital requirement and interest thereon are summarized in the table below for each
of the functions of BSEB.
Table 136: Methodology adopted by BSEB for calculat ion of Working Capital
Description Generation Transmission Distribution
Norms for calculation
Thermal WC = 2 months cost of coal + 2 months cost of secondary fuel oil + Maintenance spares (at 1% of GFA escalated at 6 % per annum) + 1 month O&M + Receivables (2 months of fixed and variable charges).
WC = Maintenance spares ((at 1% of GFA escalated at 6 % per annum) + Receivables (2 months of transmission charges) + 1 month O&M
WC=1 month O&M + Maintenance spares (at 1% of GFA escalated at 6 % per annum) + 2 months revenue
Reference BERC (Terms and conditions for determination of Tariff) Regulations, 2007.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 207
6.27.2 BSEB has proposed short-term prime lending rate of SBI as on 01/04/2012 i.e.
13.00% for computing interest on working capital. The BSEB has proposed interest
on working capital at Rs. 211.67 Cr. for FY 2012-13.
Table 137: Proposed Interest on Working Capital for FY 2012-13 (Rs Cr) Particulars Generation Transmission Distribution Total 2 month primary fuel & secondary fuel 158 - - 158 1 month O&M 6 11 76 93 Receivables 95 58 1,163 1,316 Maintenance Spares 11 11 38 60 Total WC Requirement 270 81 1,277 1,628 Interest Rate (SBI PLR as on Apr’11) 13.00% 13.00% 13.00% 13.00% Interest on Working Capital 35.11 10.49 166.07 211.67
Commission’s View
6.27.3 The Commission is of the view that, since the working of BSEB is still as an
integrated unit, the Commission has not considered receivables for Generation and
transmission function.
6.27.4 Interest on working capital is computed on normative basis as per BERC (Terms and
conditions for determination of Tariff) Regulations, 2007. SBI PLR rate of 13% as on
1st April, 2011 has been considered for calculation of interest for funding working
requirement. Based on the same, Commission approves interest on working capital
for FY 2012-13 as given in the table below:
Table 138: Approved Interest on Working Capital for FY 2012-13 (Rs Cr) Particulars Generation Transmission Distribution Total
2 month primary fuel & secondary fuel 15.91 - - 15.91
1 month O&M 4.26 8.88 63.00 76.14
Receivables - - 982.09 982.09
Maintenance Spares 10.32 12.37 33.93 56.62
Total WC Requirement 30.49 21.25 1,079.02 1,130.76
Interest Rate (SBI PLR as on Apr’11) 13% 13% 13% 13%
Interest on Working Capital 3.96 2.76 140.27 147.00
6.27.5 The Commission approves the interest on working cap ital of Rs. 147.00 Cr. as
against Rs.211.67 Cr. projected of by BSEB for FY 2 012-13.
6.28 Non-Tariff Income
Petitioner’s submission
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 208
6.28.1 BSEB has projected non-tariff income of Rs. 55.11 Cr. for FY 2012-13. BSEB has
mainly considered 3 year CAGR to project non-tariff income for FY 2012-13 based on
the actual income of FY 2010-11.
6.28.2 BSEB has also requests the Commission not to consider any income from DPS as it
is a source for funding increased working capital requirement and also requested the
Commission not to consider income from interest on un-utilized funds while
determining ARR for FY 2012-13.
6.28.3 The detailed break-up of non-tariff income claimed by the Petitioner is as below:
Table 139: Break-up of proposed non-tariff income f or FY 2012-13 (Rs.Cr.)
Sl. Particulars FY 2010-11 (Actual)
FY 2011-12 (RE)
FY 2012-13
(Projected) 1 Meter/Service rent 25.00 22.38 26.53
2 Late payment surcharge 38.24 - -
3 Theft / pilferage of energy 10.00 - -
4 Misc. receipts 2.79 4.07 4.80
5 Misc. charges (except PLEC) 10.55 16.32 17.95
6 Wheeling charges - - -
7 Interest on staff loans & 0.01 0.05 0.11
8 Income from trading 1.02 1.05 1.05
9 Income from welfare activities - - -
10 Rental Tender Registration - - -
11 Interest of Bank Deposit 53.48 - -
12 Rebate & discount received 26.06 3.06 3.06
13 Incentive for timely payment against loan to PFC 1.08 0.44 0.44
15 Incentive for timely payment against loan to PFC - 1.16 1.16
17 Total Income 168.23 48.54 55.11
18 Add Prior period income - - - 19 Total Non-tariff income 168.23 48.54 55.11
Commission’s analysis
6.28.4 The Commission agrees with the methodology adopted by BSEB to compute non-
tariff income. At the same time, the Commission feels that it is necessary to adjust
some components of non-tariff income based on recent developments in the sector
which do appropriately reflect the past trend. Also, the Commission has allocated
entire non-tariff income to the distribution function on BSEB.
6.28.5 The Commission has approved the meter rent, Interest on Staff Loan & Advance,
and Misc. charges from consumers for FY 2012-13 based on the three (3) years
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 209
CAGR based on actual value for FY 2010-11. For other components of Non-tariff
income, the Commission has considered the actual value of FY 2010-11.
6.28.6 The Commission has adopted the approach on for DPS as a part of Non-tariff income
in line with the recent judgement of Hon’ble Appellate Tribunal for Electricity (APTEL)
dt. 12.07.2011 in Case no 142 & 147 of 2009.
6.28.7 The relevant extracts of the Judgment are reproduced below:
“The normative working capital compensates the distribution company in delay for
the 2 months credit period which is given to the consumers. The late payment
surcharge is only if the delay is more than the normative credit period. For the period
of delay beyond normative period, the distribution company has to be compensated
with the cost of such additional financing. It is not the case of the Appellant that the
late payment surcharge should not be treated as a non-tariff income. The Appellant is
only praying that the financing cost is involved due to late payment and as such the
Appellant is entitled to the compensation to incur such additional financing cost.
Therefore, the financing cost of outstanding dues, i.e. the entire principal amount,
should be allowed and it should not be limited to late payment surcharge amount
alone. Further, the interest rate which is fixed as 9% is not the prevalent market
Lending Rate due to increase in Prime Lending Rate since 2004-05. Therefore, the
State Commission is directed to rectify its computation of the financing cost relating
to the late payment surcharge for the FY 2007-08 at the prevalent market lending
rate during that period keeping in view the prevailing Prime Lending Rate”.
6.28.8 The Commission has computed DPS of Rs. 30.84 Cr.for FY 2012-13 based on the
three (3) years CAGR applied on the actual value for FY 2010-11. As the Petitioner
charges DPS @ 18% per annum (1.5% per month), the principal amount on which
DPS would be charged comes as Rs.154.64 Cr.
6.28.9 As prevailing SBI PLR as on April 1, 2011 was 13%, the Commission has allowed the
financing cost for DPS @ 13%. The financing cost approved by the Commission is
shown below:
Table 140: Funding of DPS (Rs. Cr.) Particular FY 2012-13
DPS as per projections (@ 1.5% per month) (A) 30.84
Principal amount on which DPS was charged (B = A / 18%) 171.35
Interest Rate for funding of Principle of DPS 13.00%
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 210
Particular FY 2012-13
Interest on funding of Principal amount of DPS 22.28
6.28.10 The Commission has sought additional information vide its letter No. BERC-Tariff-
24/11-272 dated 23.03.2012 seeking information on actual DPS collected by the
Board. However, the Board has replied vide letter no. Com/ tariff-161/11-488 dated
23.03.2012 saying that the same is not available as of now and shall be made
available only once the IT based billing system is implemented under the ongoing R-
APRDRP Scheme.
6.28.11 The Commission is not satisfied with the justification given by the Board for not
maintaining records for actual revenue receipts against DPS. The Commission
directs the Board to submit the same as per actuals in its subsequent filings/ true-up
petitions, in the absence of which the Commission shall consider 100% DPS as non-
tariff income for the purpose of calculation of the ARR.
6.28.12 Hence, the Commission has computed the amount of Non-Tariff Income as
summarised below:
Table 141: Approved Non-Tariff Income for FY 2012-1 3 (Rs. Cr.)
Particular FY 2012-13
Non-Tariff Income as per the Annual accounts
Interest on Staff Loan & Advance 0.05
Income from Investment (F.D) -
Interest on Loan & advance to licensees -
D.P.S from Consumer 30.84
Interest on advance to Supplier/Contractor -
Interest from Bank (Other then F.D) 53.48
Income from Trading 1.05
Income from Staff Welfare activities -
Miscellaneous Receipt. 3.49
Rebate and Discount Received 17.93
Incentive for timely payment of power purchase bills 1.16
Incentive for timely payment of instalment against Loan to PFC 0.46
Meter Rent 25.51
Wheeling charges -
Miscellaneous Charges from Consumers 15.47
Total Non-Tariff Income 149.44
Less: Financing cost of Principle amount of D.P.S. 22.28
Net Non-Tariff Income 127.16
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 211
6.28.13 The Commission approves the non-tariff income of Rs . 127.16 Cr. as against
Rs.55.11 Cr. projected by BSEB for FY 2012-13.
6.29 Return on Equity
Petitioner’s submission
6.29.1 BSEB has submitted that its asset are funded through loans and grants from the
Government of Bihar, loans and grants under specialized funding schemes of the
Government of India and loans from commercial lending organizations.
6.29.2 BSEB has also submitted that the in states like Jharkhand, Punjab, Chhattisgarh and
Kerala, where integrated Boards like BSEB were / are operational, the appropriate
Commissions have allowed / allow for a reasonable return on equity despite the fact
they have capital structure which is very much similar to that of BSEB and are mainly
funded through loans/ grants from respective State Governments.
6.29.3 BSEB has requested for the reasonable return of 14% on normative equity of 30% of
the Gross Fixed Assets (net off capital grants/ subsidies) in the ARR for the year
2012-13 of Rs. 282 Cr.
Commission’s analysis
6.29.4 Return is admissible only on equity actually deployed for the creation of assets.
Since, BSEB has not been corporatized; it does not have any equity. The
Commission has considered entire assets base funded through loan and accordingly
interest has been allowed.
Therefore, no return is payable on notional equity.
6.30 Revenue from Sale of Power at Existing Tariff for FY 2012-13
BSEB’s Submission
6.30.1 BSEB has furnished the revenue from existing tariff at Rs.2972.84 Cr. for the FY
2012-13. BSEB has proposed separate tariff for Patna and Rest of Bihar. The
revenue from sale of power as projected by BSEB is given in the table below:
Table 142: Revenue Projected for Premium tariff are a, RoB and BSEB at existing tariff
Particular Premium Tariff Areas Rest of Bihar Total Bihar
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 212
Energy Sale (MU)
Revenue (Rs Cr.)
Energy Sale (MU)
Revenue (Rs Cr.)
Energy Sale (MU)
Revenue (Rs Cr.)
Average Realisation (Rs/ unit)
Kutir Jyoti (R) - - 716.28 115.80 716.28 115.80 1.62
Kutir Jyoti (U) 0.49 0.09 0.79 0.14 1.29 0.23 1.80
DS - I (R) 2.53 0.44 1,045.21 213.54 1,047.74 213.98 2.04
DS- II
Single Phase 544.15 186.32 707.75 246.62 1,251.90 432.93 3.46
Three Phase 38.45 12.89 50.01 17.07 88.46 29.97 3.39
DS- III - - 0.99 0.35 0.99 0.35 3.53
NDS-I (R) 0.13 0.03 21.95 6.52 22.08 6.56 2.97
NDS-II (U)
Single Phase 159.87 111.93 187.35 136.23 347.22 248.16 7.15
Three Phase 95.92 69.82 112.41 86.37 208.33 156.19 7.50
NDS-III 0.54 0.23 16.73 5.17 17.27 5.39 3.12
LTIS-I 35.70 21.82 155.03 88.35 190.72 110.17 5.78
LTIS-II 50.94 30.70 71.92 61.28 122.87 91.98 7.49
Public Water Works 24.99 11.97 35.40 16.29 60.39 28.26 4.68
IAS-I (Private) 15.52 2.02 256.11 33.29 271.63 35.31 1.30
IAS-II (Government) 1.99 0.49 114.98 76.12 317.05 76.61 2.42
SS-I (Metered) 1.10 0.48 4.51 1.80 5.61 2.29 4.08
SS-II (Unmetered) 8.70 1.66 18.86 5.23 27.56 6.89 2.50
HTS-I 425.78 257.44 499.67 285.87 925.45 543.30 5.87
HTS-II 168.44 87.57 238.83 129.32 407.26 216.90 5.33
HTS-III - - 221.30 116.53 221.30 116.53 5.27
HTSS 37.22 22.55 239.66 93.50 276.87 116.04 4.19
RTS-I - - 784.77 418.98 784.77 418.98 5.34
Total 1,612.45 818.45 5,500.53 2,154.39 7,313.05 2,972.84 4.07
Commission’s analysis
6.30.2 In the petition BSEB has not submitted complete details of break-up of revenue from
existing tariff category / sub category and slab wise. In response to a query from the
Commission vide letter No.. BERC- Tariff – 24/11- 825 dated 21st December, 2011
BSEB vide letter No Com/Tar/161/2011-260 dated 09th February, 2012 furnished the
above revenue details. From scrutiny of the details submitted by BSEB it becomes
evident that slab‐wise details provided by BSEB are based on certain assumptions
which are without supporting details.
6.30.3 For a proper analysis and realistic estimation of revenue from existing/ proposed tariff
the particulars of number of consumers, sales, connected load /contracted demand,
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 213
revenue from fixed charges, revenue from variable charges, any other revenue
category wise, sub category wise and slab wise are essential. BSEB has come under
the regulatory regime and the Commission has already issued four Tariff Orders for
FY 2006-07 on 29th Nov’06, for FY 2008-09 on 26th Aug’08, for FY 2010-11 on 06th
Dec’10 and for FY 2011-12 on 1st May’11. The above data is a regulatory
requirement and BSEB is required to maintain/build the database as per the
regulatory requirement.
6.30.4 The Commission has analysed the slab-wise data as provided by BSEB and based
on the same, computed the revenue at existing tariff with respect to the approved
sales.
Table 143: Revenue assessed for BSEB at existing ta riff by Commission
Projected by BSEB for FY 2012-13
Estimated by Commission for FY 2012-13
Particular Energy Sale (MU)
Revenue (Rs Cr.)
Energy Sale (MU)
Revenue (Rs Cr.)
Kutir Jyoti (Rural) 716.28 115.80 455.94 72.57
Kutir Jyoti (Urban) 1.29 0.23 1.46 0.27
DS - I (Rural) 1,047.74 213.98 1,047.74 196.82
DS- II - -
Single Phase 1,251.90 432.93 1,406.10 477.38
Three Phase 88.46 29.97 18.81 10.33
DS- III 0.99 0.35 0.99 0.37
NDS-I (Rural) 22.08 6.56 22.15 5.14
NDS-II (Urban) - -
Single Phase 347.22 248.16 363.62 255.80
Three Phase 208.33 156.19 218.17 160.69
NDS-III 17.27 5.39 18.08 5.64
LTIS-I 190.72 110.17 196.62 105.79
LTIS-II 122.87 91.98 126.66 76.78
Public Water Works 60.39 28.26 160.32 68.85
IAS-I (Private) 271.63 35.31 271.63 31.34
IAS-II (Government) 317.05 76.61 317.17 76.41
SS-I (Metered) 5.61 2.29 6.98 2.85
SS-II (Unmetered) 27.56 6.89 34.29 7.33
HTS-I 925.45 543.30 966.94 574.84
HTS-II 407.26 216.90 425.52 238.13
HTS-III 221.30 116.53 221.30 117.92
HTSS 276.87 116.04 446.51 161.28
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 214
Projected by BSEB for FY 2012-13
Estimated by Commission for FY 2012-13
Particular Energy Sale (MU)
Revenue (Rs Cr.)
Energy Sale (MU)
Revenue (Rs Cr.)
RTS-I 784.77 418.98 784.77 424.11
Total 7,313.05 2,972.84 7,511.79 3,070.63
6.31 Revenue from sale to Nepal & UI
BSEB’s Submission
6.31.1 BSEB has sold 555 MU of energy to Nepal at rate of Rs. 4.66 per kWh in FY 2010-
11. BSEB projected the same trend to continue for FY 2011-12 & FY 2012-13. BSEB
has projected revenue from sale of power to NEA for FY 2011-12 & FY 2012-13 at
Rs. 258.63 Cr. each.
6.31.2 BSEB has projected that sale under UI for the FY 2011-12 & FY 2012-13 will be
same as that of FY 2010-11. BSEB has projected its revenue from sale of power
under UI assuming average price of Rs. 3.09 per unit equal to the rate for FY 2010-
11. Revenue from sale of power under UI for FY 2011-12 & FY 2012-13 is projected
at Rs. 90.54 Cr. each.
Commission’s analysis
6.31.3 The Commission approves the projected sales to Nepa l at 555 MU at Rs 258.63
Cr. for FY 2012-13, as it is obligatory to supply p ower to Nepal.
6.31.4 The Board has projected the energy sales of 293 MUs under un-scheduled
interchange (UI)] for the FY 2012-13. The Commission is of the view that, as per the
energy balance the Board is left with additional power to the extent of 2228 MUs.
BSEB has submitted that, the BSEB shall supply 266 MUs additional power to towns
where premium tariff is proposed, industrial categories on LT line, urban areas, PWW
and Street Lights. Accordingly, the Commission approves 293 MUs for sale under UI
as prima facie it seems that it will not impact the supply hour of existing and
proposed consumer base of BSEB.
Accordingly, the Commission approves the proposed s ale under UI for the FY
2011-12 @ Rs. 3.67 per unit, the average power purc hase cost for the year, for
an amount of Rs. 107.76 Cr.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 215
6.32 Revenue from sale of Additional Power
BSEB’s Submission
6.32.1 BSEB has submitted that, additional hours of power supply will be provided to towns
where premium tariff is proposed, industrial categories on LT line, urban areas, PWW
and Street Lighting. BSEB has projected additional revenue of Rs. 135.38 Cr at
existing tariff and 203.66 Cr. at proposed tariff through sale of this additional power at
the rate of average revenue realisation rate of the categories mentioned for FY 2012-
13.
Commission’s analysis
6.32.2 BSEB has projected energy balance at the projected T&D loss level of 41%. The
Commission has already given T&D loss target of 27.5% to BSEB for the FY 2012-13
in its Tariff Order for FY 2011-12 dated 1st May, 2011.
6.32.3 The Commission is of the view that, as per the energy balance the Board is left with
additional power to the extent of 2228 MUs. For which BSEB has submitted that
power to the extent of 266 MUs shall be supplied to towns where premium tariff is
proposed, industrial categories on LT line, urban areas, PWW and Street Lights.
Accordingly, the Commission approves 293 MUs for sale under UI as prima facia it
seems that it will not impact the supply hour of existing and proposed consumer base
of BSEB.
6.32.4 For FY 2012-13, the Commission has worked out energy balance based on T&D loss
level of 27.5% as against 41% projected by BSEB. Also, in the energy balance,
BSEB is proposing availability of 266 MUs of additional power in BSEB system for
sale. The Board has proposed to sell this additional power to industrial categories on
LT line, urban areas, PWW and Street Lights and the towns where premium tariff is
proposed. Considering the supply shortage situation in the State, the Commission is
of the opinion that BSEB can sell higher amount of energy and to that extent it can
bill higher revenue.
6.32.5 To work out the average realisation rate for this sale the Commission has considered
that the additional power can be absorbed by all categories of Consumers in BSEB
system including HT consumers. Average energy realisation rate of all consumer’s
category other than Kutir Jyoti has been considered to determine additional revenue
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 216
that can be available to BSEB. Based on the above methodology, additional revenue
of Rs. Rs. 120.99 Cr. has been considered for FY 2012-13 as shown below:
Table 144: Additional Revenue for the FY 2012-13
Particular Unit FY 2012-13
Approved by Commission
Energy available for sale to Consumers MU 265.85
Average Energy realisaiton rate (excluding KJ & agriculture) Rs./Unit 4.55
Additional revenue at existing tariff Rs. Cr. 120.99
6.33 Resource gap funding for meeting cost of addit ional power purchase
BSEB’s Submission
6.33.1 Based on the Commission’s approved T&D loss trajectory, BSEB in its petition has
requested the Commission to consider the energy balance as projected for FY 2012-
13 and accordingly approve the additional power purchase of 2567 MUs.
6.33.2 BSEB has also submitted that during FY 2012-13, BSEB will under-achieve the T&D
loss as compared to the T&D loss trajectory approved by the Commission hence
would require to purchase additional power of 2567 MUs for FY 2012-13 as indicated
in Energy Balance. Based on the net power purchase rate, additional power
purchase cost works out to Rs. 955.74 Cr. for FY 2012-13.
6.33.3 BSEB has also informed the Commission in the ARR and tariff petition for FY 2012-
13 that the State Government is providing financial assistance in the form of resource
gap funding to bridge the gap between expenses allowed by the Commission and
actual expenses incurred by BSEB.
Commission’s analysis
6.33.4 Based on the letter from State Government on utilisation of resource gap grant, the
Commission has adjusted the cost of additional power purchase requirement on
account of difference in actual T&D loss of BSEB and T&D loss approved by the
Commission from the resource gap funding by the state Govt. The approach has
reduced the net power purchase cost of the BSEB for the FY 20012-13. The
Commission has computed the cost of additional 2338 MUs (as per approved energy
balance) of power at the power purchase rate of medium/ short term power and has
reduced the same amount from the power purchase cost of BSEB to arrive at the net
power purchase cost of Rs. 4175 Cr. for FY 2012-13”.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 217
6.33.5 The table below summarises the computation of net Power purchase cost of BSEB
for FY 2012-13.
Table 145; Approved cost of additional power purcha se through resource gap for FY 2012-13
Particular Unit Approved by Commission for FY 2012-13
Additional power purchase by BSEB MU 2,338.03
Power purchase rate of Medium/ Short Rs./Unit 4.31
GoB support for cost of Additional power purchased (A) Rs. Cr. 1,006.5
Gross Power purchase cost for FY 2012-13 (B) Rs. Cr. 5,181
Approved Net Power purchase cost for BSEB (B) – (A) Rs. Cr. 4,175
6.34 Past Recoveries
BSEB’s Submission
6.34.1 BSEB has computed total revenue through past recovery as Rs.5032.8 Cr. Based on
its True-up petition for the period FY 2006-07 to FY 2010-11 which also includes
carrying cost on the revenue gap.
Commission’s analysis
6.34.2 The Commission has conducted the detailed analysis and truing up for the period of
FY 2006-07 to FY 2010-11 based on the audited annual accounts of these years and
Review of FY 2011-12. The summary of revenue gap/surplus approved by the
Commission is given as below:
Table 146: Approved Revenue Gap/Surplus for FY 2006 -07 to FY 2011-12 (Rs. Cr.)
Particular Approved by Commission
Revenue Gap/ (Surplus) with carrying cost for FY 2006-07 7.23
Revenue Gap/ (Surplus) with carrying cost for FY 2007-08 86.56
Revenue Gap/ (Surplus) with carrying cost for FY 2008-09 123.41
Revenue Gap/ (Surplus) with carrying cost for FY 2009-10 274.67
Revenue Gap/ (Surplus) with interest for FY 2010-11 (639.93)
Revenue (Gap)/Surplus for FY 2011-12 (as per review of FY 2011-12) (674.63)
Cumulative Revenue Gap/ (Surplus) (822.69)
6.34.3 The aggregate revenue gap along with carrying cost/ interest from FY 2006-07 to FY
2011-12 approved by the Commission resulting in a cumulative revenue surplus of
Rs 822.69 Cr. The Commission shall consider this surplus revenue in the ARR for FY
2012-13.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 218
6.35 Aggregate Revenue Requirement of BSEB for FY 2 012-13
6.35.1 The summary of revenue requirement of BSEB for the FY 2012-13 as analysed in the
preceding paragraphs is given in the table below:
Table 147: Aggregate Revenue Requirement for the FY 2012-13 at existing tariff (Rs. Cr.)
Sl. Particular FY 2012-13
Projected by BSEB
FY 2012-13 Approved by
BERC 1 Power Purchase Cost 5,139.49 5,181.71
2 Fuel 158.13 103.52
3 R&M Cost 110.68 110.27
4 Employee Cost 933.22 735.37
5 A&G Cost 76.88 74.78
6 Depreciation 280.66 159.77
7 Interest & Financial Charges 705.72 191.18
9 Interest on Working Capital 211.67 147.0
10 Return on Equity 281.68 -
11 Total Revenue Requirement 7,898.13 6,703.6
12 Less: Non-Tariff Income 55.11 127.16
13 Less : Disallowable Power Purchase Cost/ Government Support for Power Purchase Cost 955.74 1,006.52
14 Less : Sale of Power Outside State - -
15 Add : Recovery/ (surplus) of Revenue Gap of past filing
5,032.83 (822.69)
16 Net Revenue Requirement 11,920.11 4,747.22
17 Less: Revenue from existing tariff 2,972.84 3,070.63
Gap (=16-17) 8947.27 1676.60
18 Less: Revenue from sale of power to Nepal 258.63 258.63
19 Less: Revenue from sale of power in UI 90.54 107.76
20 Less: Revenue from sale of addl. Power 135.41 120.99
21 Gap 8,462.69 1,189.22
22 Less: Resource Gap Assistance 124.26 -
23 Net Gap at existing tariff 8,338.43 1,189.22
6.35.2 From the above table it can be seen that after considering the State Government
support for cost of additional power purchase requirement on account of difference in
actual T&D loss of BSEB and T&D loss approved by the Commission, the net
revenue gap approved by the Commission for FY 2012-13 is Rs. 1189.22 Cr., with
revenues projected at existing tariff as against Rs. 8338.43 Cr. projected by BSEB.
6.35.3 Function wise expenses namely generation, Transmission and Distribution approved
by the Commission are as given in the table below:
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 219
Table 148: Function-wise breakup of ARR approved by Commission for FY 2012-13 (Rs. Cr.) Sl. Particulars Generation Transmission Distribution Total
1 Power Purchase Cost - - 5,181.71
5,181.71
2 Fuel 103.52 - - 103.52
3 R&M Cost 17.25 14.05 78.96 110.27
4 Employee Cost 39.19 87.47 608.71 735.37
5 A&G Cost 1.36 5.06 68.36 74.78
6 Depreciation 11.94 29.59 118.24 159.77
7 Interest & Financial Charges 41.14 28.68 121.37 191.18
9 Interest on Working Capital 3.96 2.76 140.27 147.00
10 Return on Equity - - - -
11 Total Revenue Requirement 218.36 167.61 6,317.62
6,703.59
6.36 Revenue at Approved Tariff
6.36.1 The Commission has revised the existing retail tariff and approved retail tariff for FY
2012-13 in the subsequent chapter “Tariff principles, design and tariff schedule”. The
Commission expects additional revenue of Rs. 348.06 Cr. on account of tariff revision
which indicates a tariff rise of 12.1%.
6.36.2 The estimated additional revenue from the approved tariffs for the FY 2012-13 from
various categories of consumers is given in table below:
Table 149: Revenue from Sale of energy at Approved Tariff for FY 2012-13
Particular Energy Sale (MU) Revenue (Rs Cr.) Average realization (Rs. per unit)
Kutir Jyoti (Rural) 455.94 72.57 1.59
Kutir Jyoti (Urban) 1.46 0.27 1.87
DS - I (Rural) 1,047.74 196.82 1.88
DS- II
Single Phase 1,406.10 500.37 3.56
Three Phase 18.81 10.53 5.60
DS- III 0.99 0.40 4.07
NDS-I (Rural) 22.15 5.14 2.32
NDS-II (Urban)
Single Phase 363.62 260.19 7.16
Three Phase 218.17 160.92 7.38
NDS-III 18.08 6.22 3.44
LTIS-I 196.62 116.89 5.94
LTIS-II 126.66 84.73 6.69
Public Water Works 160.32 114.43 7.14
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 220
Particular Energy Sale (MU) Revenue (Rs Cr.) Average realization (Rs. per unit)
IAS-I (Private) 271.63 31.34 1.15
IAS-II (Government) 317.17 178.64 5.63
SS-I (Metered) 6.98 4.63 6.63
SS-II (Unmetered) 34.29 19.85 5.79
HTS-I 966.94 632.15 6.54
HTS-II 425.52 260.28 6.12
HTS-III 221.30 127.89 5.78
HTSS 446.51 170.33 3.81
RTS-I 784.77 464.10 5.91
Total 7,511.79 3,418.68 4.55
6.37 Revenue Gap at Approved Tariff
6.37.1 The expected revenue gap at approved tariffs for the FY 2012-13 is Rs. 841.17 Cr.
as given in table below:
Table 150: Revenue Gap at Approved Tariff for FY 20 12-13 (Rs. Cr.)
Sl. Particular FY 2012-13 Approved by BERC
1 Net Revenue Requirement 4,747.22
2 Less: Revenue from approved tariff 3,418.68
3 Less: Revenue from sale of power to Nepal 258.63
4 Less: Revenue from sale of power in UI 107.76
5 Less: Revenue from sale of addl. Power 120.99
6 Gap 841.17
7 Less: Resource Gap Assistance -
8 Net Gap 841.17
9 Energy Sale (MU) 8,625.64
10 Average Cost of Supply without Grant (Rs/ kWh) 5.50
11 Average Cost of Supply with Grant (Rs/ kWh) 4.71
6.37.2 As per the letter from State Government dated 19th Sep’ 2011, the treatment of
support from State Government is considered to compensate in full for the financial
losses caused to BSEB on account of additional power purchase due to difference in
the actual T&D loss and the T&D loss as determined/ approved by the Commission
and an additional grant of up to Rs. 1080 Cr. shall be available to subsidize
agriculture and rural consumers. Further, the State Government again clarified during
the meeting with the BSEB and Commission held 19th March’2012 that the subsidy
would be only for agriculture and rural consumers, subject to maximum of Rs. 1080
Cr.. The Commission the treatment of subsidy/ support from State Government
accordingly for FY 2012-13 in this Tariff Order.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 221
6.37.3 In view of the above, the Commission approves an average tariff hike of 12.1 %
during FY 2012-13. It may be noted that the Commission has not approved any tariff
hike for Kutir Jyoti (Rural & Urban), Domestic – I (Rural), Non-Domestic-I (Rural),
Irrigation and Agriculture Pumpset (IAS-I) category in this Tariff Order as the same
are being subsidized by the State Government for the FY 2012-13.
6.37.4 The approved tariff hike is expected to accrue to reduce the net gap for the FY 2012-
13 to the extent of 157.26 Cr. as worked out in the tariff below:
Table 151: Revenue Gap at Approved Tariff for FY 20 11-12 (Rs. Cr.)
Sl. Particular FY 2012-13 Approved by BERC
1 Net Revenue Requirement 4,747.22
2 Less: Revenue from approved tariff 3,418.68
3 Less: Revenue from sale of power to Nepal 258.63
4 Less: Revenue from sale of power in UI 107.76
5 Less: Revenue from sale of addl. Power 120.99
6 Gap 841.17
7 Less: Tariff subsidy from State Government 683.90 8 Net Gap 157.26
6.37.5 The Commission has approved an average tariff hike of 12.1 % during FY 2012-13
which is reasonable. This hike has been approved to minimize revenue gap of BSEB.
It is felt that any sharp increase in tariff would have caused undue hardship to the
consumers and the tariffs need to be gradually made to reflect the actual cost of
supply. It may be noted that the approved value of regulatory asset in this Tariff
Order being carried forward to subsequent years is justifiable on the following
grounds:
• There was already a regulatory asset to the tune of Rs. 245 Cr. approved in the
Tariff Order for FY 2011-12 which was carried forward to FY 2012-13. The
regulatory asset now being approved is considering the cumulative impact for
the period FY 2006-07 up to FY 2012-13.
• The Commission has approved substantial tariff increase consecutively in FY
2010-11 and FY 2011-12 therefore it was felt that any substantial increase in
tariff would be an additional burden to the consumer.
• Moreover, there has been a sudden change in the policy of the State
Government in which it has been allowing for adjustment of grant/ subsidies to
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 222
the BSEB. A Bulk of the subsidy support which was earlier being used to reduce
the overall ARR is now being used to compensate the BSEB for the disallowed
power purchase cost on account of higher than approved T&D losses. Secondly,
the Government has clarified that a subsidy support shall be made available to
the BSEB only for Agriculture and Rural consumers up to a maximum limit of Rs.
1080 Cr. Therefore, the subsidy support which was in a subsidizing all
consumers of BSEB to the extent of the Approved ARR is not available for the
rest of the consumer categories. Had the Government made total subsidy
support of Rs. 1800 Cr. for FY 2012-13 (as already made available for FY 2011-
12) and also continued with the previous adjustment practice, there would have
been no need for any tariff increase during FY 2012-13.
6.37.6 Therefore, the Commission has decided to retain net revenue gap of Rs. 157.26 Cr.
for FY 2012-13 to avoid sudden tariff shock. This unrecovered gap is considered as
Regulatory Asset to be amortized in subsequent years. BSEB may have to mobilize
financial resources to maintain its cash flow and the Commission will allow carrying
cost of the same.
6.38 Average Tariff as percentage of Average Cost i n Tariff Order for FY 2011-12 &
FY 2012-13
6.38.1 The Commission has approved tariff for various consumer categories considering
gradual reduction in cross-subsidy in line with the requirement of Tariff Policy. As
seen from the table below, tariff as a percentage of average cost is moving towards
the band of ± 20% of average cost of supply as suggested in Tariff Policy. The
average Tariff as a percentage of average cost of supply approved in Tariff Order for
FY 2011-12 and that approved in the Tariff Order for FY 2012-13 is as shown in the
table below.
Table 152: Cross-Subsidy in FY 2011-12 & FY 2012-13
Sl. Particular
FY 2011-12 (As per T.O. FY 2011-12) FY 2012-13 approved by Commission
Average Realization
Cost of Service
% of average cost
Average Realization
Cost of Service
% of average
cost 1 Kutir Jyoti 2.36 5.62 42% 1.59 5.50 29%
2 DS‐I 1.88 5.62 33% 1.88 5.50 34%
3 D.S.‐ II 3.35 5.62 60% 3.59 5.50 65%
4 DS 2.74 5.62 49% 2.86 5.50 52%
5 NDS ‐ I 2.50 5.62 44% 2.32 5.50 42%
6 NDS‐II 6.85 5.62 122% 7.24 5.50 132%
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 223
Sl. Particular FY 2011-12 (As per T.O. FY 2011-12) FY 2012-13 approved by Commission
7 NDS ‐ III 3.66 5.62 65% 3.44 5.50 62%
8 NDS 6.61 5.62 118% 6.95 5.50 126%
9 Irrigation IAS – I 1.30 5.62 23% 1.15 5.50 21%
10. Irrigation IAS – II
2.44 5.62 43% 5.63 5.50 102%
11 Irrigation 1.69 5.62 30% 3.57 5.50 65%
12 L.T.I.S.‐I 5.51 5.62 98% 5.94 5.50 108%
13 L.T.I.S.‐II 6.12 5.62 109% 6.69 5.50 122%
14 LT Industrial 5.67 5.62 101% 6.24 5.50 113%
15 Public Water work
4.22 5.62 75% 7.14 5.50 130%
16 PWW 4.22 5.62 75% 7.14 5.50 130%
17 Street light‐I (Metered)
4.03 5.62 72% 6.63 5.50 120%
18 Street light‐II (Unmetered)
3.45 5.62 61% 5.79 5.50 105%
19 Street Light 3.51 5.62 62% 5.93 5.50 108%
20 H.T.S.‐I 5.59 5.62 99% 6.54 5.50 119%
21 H.T.S.‐II 5.37 5.62 96% 6.12 5.50 111%
22 H.T.S.‐III 5.15 5.62 92% 5.78 5.50 105%
23 H.T.S.S. 3.77 5.62 67% 3.81 5.50 69%
24 HT 4.80 5.62 85% 5.78 5.50 105%
25 R.T.S. 5.29 5.62 94% 5.91 5.50 107%
26 Total 4.06 5.62 72% 4.55 5.50 83%
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 224
7 Government grant/ revenue subsidy
7.1 Background
7.1.1 The Bihar Electricity Regulatory Commission has till date issued Tariff Orders for FY
2006-07, FY 2008-09, FY 2010-11 and FY 2011-12. The year-wise amount of
revenue grant/ Subsidy received from the State Government and its treatment by the
Commission in the previous Tariff Orders is indicated below:
Table 153: Details of Resource gap grant received f rom State Government
Financial Year Amount of Govt. Grant* (Rs. Cr.) Remarks
FY 2006-07 720
The Commission has used the State Government resource gap grant to reduce the net ARR of BSEB so as to provide subsidized tariff to all consumer categories.
FY 2007-08 720
FY 2008-09 720
FY 2009-10 840
FY 2010-11 1080
FY 2011-12 1080 (Provisional)
* : As per audited annual accounts
7.2 BSEB proposal and BERC approach toward Grant/ R evenue Subsidy from State Government in tariff petition
7.2.1 BSEB since its first ARR and tariff petition for FY 2006-07 and till the ARR and tariff
petition filed for FY 2011-12 has proposed the revenue resource gap from the State
Government to bridge the total revenue gap in the ARR and thus subsidising the
consumers in the State. The Commission had also aligned its approach with the
suggestion of the licensee and accordingly has been passing on the benefit of the
resource gap received from the State Government to the consumers in its Tariff
Orders till FY 2011-12 to provide benefit to all the consumers by reducing the
revenue gap of the Board as well as to reduce the average cost of supply to the
extent of the support/ subsidy being provided.
7.3 Clarification on the treatment of State Governm ent Grant/ Revenue Subsidy
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 225
7.3.1 The letter from State Government received in the past in this regard also did not
mention the priority of usage of the fund, the earlier letters received from State
Government had only specified that the support is being made for payment of dues of
NTPC against power purchase. Energy Department, Govt. of Bihar vide letter dated
19/9/11 communicated to the Commission regarding its decision on the priority of use
of the resource gap funding provided by the Govt. to BSEB. The letter outlined that
the State Government grant will be used to compensate the financial losses caused
to BSEB on account of additional power purchase due to difference in the actual T&D
loss and the T&D loss as determined/ approved by the Commission and the
remaining portion of the grant will be used as subsidy to agriculture and rural
consumers.
7.4 BSEB proposal and BERC approach toward Grant/ R evenue Subsidy from State Government in true-up process
7.4.1 BSEB in its true-up petitions, for the period of FY 2006-07 to FY 2008-09, FY 2009-
10 and FY 2010-11 filed on 1st Sep’11, 13th Oct’11 and 15th Nov’11 respectively, has
requested the Commission to treat the resource gap funding to first use/ compensate
BSEB for meeting the losses suffered by BSEB on account of expenditure accruing
due to difference in actual T&D loss of BSEB vis-à-vis T&D losses allowed by the
Commission and consider the balance amount, if any, as subsidy to agriculture and
rural consumers of BSEB. For this, BSEB has referred to letter dated 19/9/2011
received from the Energy Department, Government of Bihar, regarding the treatment
of resource gap grant received from the State Government.
7.4.2 The Commission has observed that the resource gap grant received from the State
Government has always been proposed by BSEB to be used for reducing the net
revenue gap. This has the effect of reducing the net deficit in the ARR and thus
reducing the average cost of supply of electricity and subsidising all categories of
consumers in the state. Accordingly, the Commission has also been passing the
benefit of the resource gap grant received from the State Government to all
categories of consumers in its Tariff Orders issued upto FY 2011-12. The letter from
State Government received in the past in this regard also did not mention the priority
of usage as outlined in the latest letter of State Government dated 19/09/11. The
earlier letters received from State Government have only specified that the support is
being made available for payment of dues of NTPC against power purchase.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 226
7.4.3 The Commission in the True-up order for FY 2006-07 to FY 2008-09 has stated as
under:
“……… the Commission does not agree with the request of the Board to adjust the
dis-allowed power purchase expenses in the resource gap funding and then use the
remaining amount for subsidising the consumers. The Commission retains the
Government of Bihar Grant / Revenue subsidy amount for FY 2008-09 at Rs.720 Cr.
as approved during the review. The revenue gap for the FY 2008-09 will be
computed considering the same.”
7.4.4 The Commission is of the view that letter from State Government after the issue of
Tariff Orders cannot be used to withdraw the effect of government grant already
passed on the consumers on a retrospective basis. Therefore, the Commission has
not considered the BSEB proposal for post-facto adjustment of the revenue resource
gap during the truing up exercise for FY 2006-07 to FY 2010-11. The Commission is
of the view that the same approach would be continued while truing-up of ARR for FY
2011-12, since the Tariff Order for FY 2011-12 had already been issued before such
decision was taken by the State Government.
7.5 Treatment of Grant/ Revenue Subsidy from State Government from FY 2012-13 onwards
7.5.1 As the letter from State Government was received on 19th Sep’ 2011 i.e. before the
approval of ARR and Tariff Order for FY 2012-13, the Commission is of the opinion
that the treatment of the resource gap grant received from State Government should
be in line with the policy decision taken by State Government on utilisation of
resource gap grant. Accordingly, while approving the ARR and Tariff Order for FY
2012-13, the treatment of resource gap grant received from the State Government is
as per the priority set by Energy Department, Government of Bihar vide letter no.
4208 dated 19/09/11. Accordingly, the State Government grant has been used to
compensate the financial losses caused to BSEB on account of additional power
purchase due to difference in the actual T&D loss and the T&D loss as determined/
approved by the Commission and the remaining portion of the grant has been used
as subsidy to agriculture and rural consumers.
7.5.2 Further, the State Government again clarified during the meeting with the BSEB and
Commission held 19th March’2012 that the subsidy would be only for agriculture and
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 227
rural consumers, subject to maximum of Rs. 1080 Cr.. The consumer categories
which are considered by the Commission for subsidy support are as indicated below:
Table 154: Subsidised categories in Tariff Order fo r FY 2012-13
Sl. Name of Subsidized Category
Applicability
1 Kutir Jyoti (KJ)
This will be applicable to (i) all huts (Kutir) and dwelling houses of rural and urban families below the poverty line (BPL) (ii) houses built under schemes like Indira Awas Yojana and similar such schemes for BPL families.
2 Domestic – I: Rural (DS –I)
This is applicable to domestic premises in rural areas for a load upto 2 kW not covered by areas indicated under DS‐II and not being fed from urban / town feeders.
3 Non- Domestic – I: Rural (NDS- I)
Applicable to loads upto 2 kW in rural areas not covered by areas indicated under NDS – II and not being fed from urban / town feeders.
4
Irrigation and Agricultural Pump sets – I (IAS – I)
Applicable for supply of electrical energy for bonafide use for agricultural purposes including processing of Agricultural Produce, confined to chaff ‐ cutter, thrasher, cane crusher and rice Huller when operated by the agriculturist in the field or farm and does not include rice mills, flour mills, oil mills, dal mills or expellers. This is also applicable to hatcheries, poultries (with more than 1000 birds) and fisheries (fish ponds) also including private tube wells.
7.5.3 Unlike earlier Tariff Orders issued by the Commission, wherein the grant available
from the State Government was treated for the purpose of reducing in the ARR and
thus reducing the average cost of supply of electricity and subsidising all categories
of consumers in the state, in the Tariff Order for FY 2012-13, due to change in the
policy stand of State Government only the above mentioned four (4) categories will
be subsidised.
7.5.4 The Commission has worked out the subsidy support on the above listed consumer
categories to compensate the BSEB to the extent of the difference between the
average Cost of Supply and the average tariff for the respective categories.
7.6 Mechanism for determination and recovery of Gov ernment subsidy support to Agriculture/ Rural consumers
7.6.1 In view of the State Governments decision to compensate on the Agriculture and
other Rural consumer categories and to encourage the BSEB to improve upon its
metering and billing related activities, the Commission outlines the process for
determination and recovery of Government subsidy support to Agriculture/ Rural
consumers on units billed basis.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 228
7.6.2 The difference between the approved average CoS and the actual monthly average
tariff for the power sold to Agriculture/ Rural consumers shall form the basis for
determination and recovery of subsidy by the BSEB from the State Government on a
monthly basis.
7.6.3 The subsidy support for Agriculture/ Rural consumers on the approved sales/ ARR
for FY 2012-13 as worked out by the Commission is as provided in the table below:
Table 155: Subsidy receivable from State Government for FY 2012-13
Sl. Name of Subsidized Category
Average Tariff (Rs,/ Unit)
Average CoS (Rs,/ Unit)
Units Sold
(MUs)
Subsidy Amount (Rs Cr.)
1 Kutir Jyoti (KJ)-Rural 1.59 5.50 455.94 178.36
1 Kutir Jyoti (KJ)-Urban 1.87 5.50 1.46 0.53
2 Domestic – I: Rural (DS –I) 1.88 5.50 1,047.74 379.81
3 Non- Domestic – I: Rural (NDS- I) 2.32 5.50 22.15 7.05
4 Irrigation and Agricultural Services-I: (IAS–I) 1.15 5.50 271.63 118.15
5 Total subsidy receivable from State Govt. 683.90
7.6.4 Based on the approved ARR and tariff for FY 2012-13, Rs 683.9.Cr. will be received
by BSEB as subsidy from the State Government as subsidy support to BSEB on
sales of power to Agriculture/ Rural consumers.
7.6.5 Further to the above, any FPPCA charges applicable during any month of FY 2012-
13 should be added on to the CoS approved for the year in this Tariff Order for
determination of subsidy support to the Agriculture/ Rural categories.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 229
8 Tariff Principles, Design and Tariff Schedule
8.1 Background
8.1.1 The Commission in determining the Aggregate Revenue Requirement (ARR) and the
retail tariff of BSEB for the FY 2012-13 has been guided by the provisions of the
Electricity Act 2003, the National Electricity Policy 2005 (NEP), the Tariff Policy 2006
(TP), Regulations on Terms and Conditions for Determination of Tariff issued by the
Central Electricity Regulatory Commission (CERC) and BERC (Terms and
Conditions for Determination of Tariff) Regulations, 2007. Section 61 of the Act lays
down the broad principles, which shall guide determination of retail tariff. As per
these principles the tariff should progressively reflect cost of supply and also reduce
cross subsidies within the period to be specified by the Commission. The Act also
lays special emphasis on safeguarding consumer interests and also requires that the
costs should be recovered in a reasonable manner. The Act mandates that tariff
determination should be guided by the factors, which encourage competition,
efficiency, economical use of resources, good performance and optimum investment.
8.1.2 The NEP aims at increased access to electricity, supply of reliable & quality power at
reasonable rates, minimum life line consumption, financial turnaround & commercial
viability of electricity sector and protection of consumer’s interest. The Commission
has considered factors as far as possible which aim at achieving the objectives of
NEP while determining the revenue requirement of BSEB and designing the retail
tariff for its consumers.
8.1.3 The TP notified by Government of India in January 2006 provides comprehensive
guidelines for determination of tariff and revenue requirement of power utilities. The
Commission has endeavored to follow these guidelines as far as possible.
8.1.4 The Electricity Act, 2003 requires consideration of Multi Year Tariff (MYT) principles
and TP also mandates that the MYT framework be adopted for determination of tariff
from 1st April 2006. The BERC (Terms and Conditions for determination of tariff)
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 230
Regulations, 2007 provide the MYT framework to be made applicable to BSEB from
the date to be notified by the Commission. However the Commission did not
introduce MYT regime in the State immediately but decided to defer its applicability
till FY2012 -13 because of lack of requisite and reliable operational and financial
data. However the Commission would admit that till date the ground work necessary
for providing adequate data and improving the quality and reliability of existing data
for implementing MYT from FY2012-13 has not yet been done by BSEB. The
Commission shall take appropriate action to introduce MYT in the State as envisaged
in its regulations.
8.1.5 The Tariff Policy mandates that tariff should be within ±20% of the average cost of
supply by FY2010-11 and requires Commissions to lay down a road map for
reduction of cross subsidy. However, the Commission while designing the retail tariffs
for FY2012-13 has taken into consideration the existing level of cross subsidies, the
need to reduce cross subsidies as required under the TP and the feasible pace at
which it can be done without giving a tariff shock to subsidized consumers. The
Commission has accordingly modified tariffs for consumer categories whose existing
tariffs are lower/higher than the average cost of supply so that the retail tariffs of all
such consumer categories move closer to the band of ± 20% of the average cost of
supply. The Commission for this purpose has computed the average cost of supply
on the basis of the revenue requirement allowed and the sale approved by the
Commission for FY2012-13. Further the Commission has also considered the need
to (i) rationalize consumer categories & sub categories so that consumers with
similar load profile are considered together (ii) rationalize minimum charges (MC)
giving due consideration to hours of supply provided by BSEB (iv) encourage
Demand Side Management (DSM) by making the option of two part tariff attractive
for consumers (v) encourage ToD tariff for DSM in the State (vi) reflect quality and
reliability of supply aspects in tariffs (vii) appropriate slab wise tariff. The Commission
believes that consideration of these factors will result in tariffs becoming more cost
reflective and equitable as consumers would be required to pay tariffs according to
the cost incurred by BSEB in supplying electricity to them.
8.2 Tariff changes proposed by BSEB
8.2.1 BSEB in its tariff petition for FY 2012-13 has proposed revision of retail tariffs of
various consumer categories to earn additional revenue of Rs.1757.11 Cr. leaving a
gap of Rs. 6581.31 Cr. to be recovered as regulatory assets in subsequent years.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 231
However on detailed scrutiny and application of prudency check on the aggregate
revenue requirement filed by BSEB, the Commission has arrived at a more realistic
aggregate revenue requirement of Rs 4747.22 Cr. for FY 2012-13. The Commission
has therefore allowed an average tariff increase of 12.1% as against 57% increase
sought by BSEB. This will result into additional revenue of Rs. 1032 Crores leaving a
gap of Rs. 157.3 Crores as regulatory asset. The average cost of supply approved by
the Commission is Rs. 5.5 per unit against Rs. 6.37 per unit proposed by BSEB.
State Government tariff subsidy of Rs. 683.90 Crores has been considered for
subsidising the rural domestic, commercial and agricultural consumers to retain their
tariff at existing level of FY 2011-12.
8.2.2 In the tariff proposal, BSEB has proposed
(i) Creation of new tariff category for HT consumers seeking construction power at
HT voltage levels for their plants,
(ii) Creation of new sub-categories within existing tariff categories
(iii) Change in existing terms and conditions of tariff.
8.2.3 The proposed increase in tariff by BSEB would result in an overall increase of about
57% against existing retail tariffs.
8.3 Changes in existing tariff categories/sub-categ ories proposed by BSEB
8.3.1 Changes in the existing tariff categories/ sub-categories proposed by BSEB are given
in brief below:
Sl. Existing Proposed by BSEB for FY 2012-13
A. LOW TENSION SUPPLY
1.0 DOMESTIC SERVICES (DS)
1.1 Kutir Jyoti – BPL Consumers Kutir Jyoti – BPL C onsumers
(i)
Kutir Jyoti – (Rural) – Load upto 60W
- Unmetered
- Metered
Kutir Jyoti – (Rural) – Load upto 60W
- Unmetered
- Metered
(ii) Kutir Jyoti - (Urban) – Load upto 100 W
- Metered
Kutir Jyoti - (Urban) – Load upto 100 W
- Metered
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 232
Sl. Existing Proposed by BSEB for FY 2012-13
1.2
DS-I (Connected load upto 2 kW)
- Unmetered
- Metered
DS-I (Connected load upto 2 kW)
- Unmetered
- Metered
1.3
DS – II (Metered)
- Single Phase Upto 5 kW
- Three Phase 5 kW and above
DS – II (Metered)
- Single Phase Upto 5 kW
- Three Phase 5 kW and above
1.3.1 DS-II (A) (Optional) Demand Based Tariff (Contract demand of 5 kW to 60 kW)
DS-II (D) (Optional) Demand Based Tariff (Contract demand of 5 kW to 60 kW)
1.4 DS – III (Metered) DS - III (Metered)
1.5 N/A
Domestic Service – (Temporary connection for a max. duration of 6 months) - DS (T)
- Unmetered
- Metered
(New sub-category proposed)
2.0 NON DOMESTIC SERVICES (NDS)
2.1
NDS-I (Load upto 2 kW in Rural area)
- Unmetered
- Metered
NDS-I (Load upto 2 kW in Rural area)
- Unmetered
- Metered
2.2
NDS – II (Metered)
(Load upto 60 kW in urban Area & Load above 2 kW in Rural Area)
- Single Phase upto 5 kW
- Three Phase for 5 kW & above
NDS – II (Metered)
(Load upto 60 kW in urban Area & Load above 2 kW in Rural Area)
- Single Phase upto 5 kW
- Three Phase for 5 kW & above
2.2.1 NDS –II (A) (Optional)-Demand Based Contract demand of 5 kW upto 60 KW
NDS –II (D) (Optional)-Demand Based Contract demand of 5 kW upto 60 KW
2.3 NDS – III (Metered) Upto 30 kW NDS – III (Metered) Upto 30 kW
2.3.1 NDS – III(A) -Demand Based of 5 kW and upto 30 Kw
NDS – III (D) -Demand Based of 5 kW and upto 30 kW
2.4 N/A NDS IV – Commercial Advertisement for hoardings
(New sub-category proposed)
2.5 N/A
Non-Domestic Service – (Temporary connection for a max. duration of 6 months) - NDS (T)
- Unmetered
- Metered
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 233
Sl. Existing Proposed by BSEB for FY 2012-13
(New sub -category proposed)
3.0 IRRIGATION AND AGRICULTURAL SERICES (IAS)
3.1 IAS – I IAS – I
(i)
Unmetered supply
- Rural feeder
- Urban feeder
Unmetered supply
- Rural feeder
- Urban feeder
(ii)
Metered supply
- Rural feeder
- Urban feeder
Metered supply
- Rural feeder
- Urban feeder
3.2 IAS – II (State Tube wells / state Lift Irrigation Pumps / State Irrigation pumps upto 100 HP)
IAS – II (State Tube wells / state Lift Irrigation Pumps / State Irrigation pumps upto 100 HP)
(i)
Unmetered supply
- Rural feeder
- Urban feeder
Unmetered supply
- Rural feeder
- Urban feeder
(ii)
Metered supply
- Rural feeder
- Urban feeder
Metered supply
- Rural feeder
- Urban feeder
4.0 LOW TENSION INDUSTRIAL SERVICE (LTIS)
4.1 LTIS – I (Connected load upto 25 HP) 4.1: LTIS (Connected load upto 99 HP)
(Proposed merger of LTIS –I and LTIS –II) 4.1.1
LTIS-I (A) Optional- Demand based Tariff- Contract demand 5 kW and upto 15 kW
4.2 LTIS – II Connected load Above 25 HP and upto 99 HP 4.1.1: LTIS (D) Demand based Tariff-
(Compulsory for all new three phase LTIS consumers) 4.2.1
LTIS – II (A) Optional-Demand based Tariff- Contract Demand above 15 kW and upto 60 kW
4.3 N/A
LTIS – (Temporary connection for a max. duration of 6 months ) - LTIS (T)
- Unmetered
- Metered
(New sub-category proposed)
5.0 PUBLIC WATER WORKS (PWW)
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 234
Sl. Existing Proposed by BSEB for FY 2012-13
5.0 PWW Connected Load upto 99 HP PWW Connected Load upto 99 HP
(Proposed as 5.1)
5.2 N/A
PWW – (Temporary connection for a max. duration of 6 months) - PWW (T)
- Unmetered
- Metered
(New sub-category proposed)
6.0 STREET LIGHT SERVICES (SS)
6.1
SS – I (Metered)
- Gram Panchayats
- Nagar Palika / NAC / Municipality
- Municipal Corporation
SS – I (Metered)
- Gram Panchayats
- Nagar Palika / NAC / Municipality
- Municipal Corporation
6.2
SS – II (Unmetered)
- Gram Panchayats
- Nagar Palika / NAC / Municipality
- Municipal Corporation
SS – II (Unmetered)
- Gram Panchayats
- Nagar Palika / NAC / Municipality
- Municipal Corporation
B. HIGH TENSION SUPPLY
7.1 HTS – I
11 kV/ 6.6 kV Supply
Installations having contract demand of 75 kVA to 1500 kVA
11 kV/ 6.6 kV Supply
Installations having contract demand of 75 kVA to 1500 kVA
7.2 HTS – II
33 kV Supply
Installations having contracted demand of 1000 kVA to 10000 kVA
33 kV Supply
Installations having contracted demand of 1501 kVA to 10000 kVA
(New range of Contract demand proposed)
7.3 HTS – III
132 kV Supply
Installations having contracted demand of 7.5 MVA and above
132 kV Supply
Installations having contracted demand of 10 MVA and above
(New range of Contract demand proposed)
7.4 HTSS
Induction furnace including Ferro Allow loads (11 kV & 33 kV)
Induction furnace including Ferro Allow loads (11 kV & 33 kV)
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Bihar Electricity Regulatory Commission Page 235
Sl. Existing Proposed by BSEB for FY 2012-13
8.0 RAILWAY TRACTION
RTS (At 132 kV supply)
RTS (At Lower than 132 kV supply)
RTS (At 132 kV supply or above)
RTS (At Lower than 132 kV supply)
9.0 TEMPORARY SUPPLY (LT & HT)
Temporary connection for a period of less
than one year.
10.0: Temporary connection for a period of
less than six (6) months. (New duration proposed for temporary category)
10.0 SEASONAL SUPPLY (LT & HT)
No change has been proposed in seasonal supply tariff category
11.0 CONSTRUCTION POWER
N/A
9.0: Construction Power for supply at 11kV and above for construction or fabrication of plants
(New category proposed)
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Bihar Electricity Regulatory Commission Page 236
8.4 Changes in tariff category and tariff schedule approved by the Commission
8.4.1 In this section the Commission has analyzed changes in tariff categories/sub-
categories and other conditions of schedule proposed by BSEB and accordingly
either approved or disapproved them. The Commission in the first instance has
commented on changes proposed by BSEB which are common to most of the
consumer category.
Creation of new tariff Category – Construction Powe r
Petitioner’s submission
8.4.2 BSEB has proposed the creation a new tariff category for HT consumers seeking
construction power at HT voltage levels for their plants. This tariff category is
proposed to be applicable to all such consumers who avail supply for construction or
fabrication of plants at 11 kV and above.
Commission’s view
8.4.3 The Commission is of the view that there is already provision for providing
connections at HT voltage levels for the purpose of construction/ fabrication works
with respect to plants as per Clause 4.63 of the BERC (Bihar Electricity Supply
Code), 2007.
Accordingly, the proposal of the BSEB for creation of a separate category for HT
consumers seeking construction power at HT voltage levels for their plants is being
rejected.
Creation of new sub-categories within existing tari ff categories
Petitioner’s submission
8.4.4 Temporary Category: Consumers seeking temporary connections for electricity
usages under Domestic Service, Non-Domestic Service, Low Tension Industrial
service, Public Water works and HT category will be eligible. Applicability of the
temporary connection is restricted to certain categories only as compared to existing
structure where all consumers are eligible. Temporary connection is proposed to be
provided as unmetered connection and metered connection for LT category of
consumers while HT category of consumers will get metered connection only. The
creation of unmetered temporary category under these categories has been
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Bihar Electricity Regulatory Commission Page 237
necessitated on account of consumers seeking temporary connections for (i) Melas,
Festivals & Exhibitions (ii) Puja Pandals (iii) Marriages and other religious/social
functions and (iv) For providing civic amenities during other social, political, cultural
and industrial functions of purely temporary nature etc. The fixed charges and
minimum energy charges have been proposed on per day basis taking into account
the limited period for which these connections are sought. The proposal for
fixed/demand and energy charges is nearly two times the highest slab of the energy
and fixed/demand charges applicable to consumers with permanent connection
under that tariff category. This has been done to account for the increased cost of
power purchase and inability of licensee to recover the same under FPPCA charges
from temporary consumers at subsequent date. No FPPCA charges are proposed to
be levied on these categories of consumers due to the temporary nature of the
connections. The maximum period for which these connections can be availed is
proposed to be six months from existing level of 1 year. The other terms and
conditions would be as applicable to the respective tariff category.
Commission’s view
8.4.5 The Commission is of the view that there is already provision for providing temporary
connections under the existing consumer/ tariff categories as per Clause 4.63 of the
BERC (Bihar Electricity Supply Code), 2007.
Accordingly, the proposal of the BSEB for creation of a separate tariff subcategories
for temporary installations under the above mentioned tariff categories is being
rejected.
Petitioner’s submission
8.4.6 NDS-IV: BSEB has proposed introduction of new sub-category (NDS-IV) under the
existing NDS tariff category for electricity used for the purpose of exclusive
commercial advertisements for hoardings and other similar connections by/through
advertising agencies. This category has been proposed due to its separate & distinct
nature of use of electricity and need to regulate such category of consumers in
appropriate way.
Commission’s view
8.4.7 The Commission is of the view that efficacy and implication of the separate tariff
category exclusively for commercial advertisements/ hoardings needs to be analysed
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Bihar Electricity Regulatory Commission Page 238
in detail before any decision is taken for inclusion of a separate sub-category. The
BSEB has not even projected the number of consumers, connected load and sales
separately for the proposed sub-category for enabling analysis of separate tariffs for
such sub-category.
Therefore, the proposal for creation of a separate sub-category exclusively for
commercial advertisements/ hoardings is being rejected. The BSEB is directed to
propose such changes in tariff categories only after providing detailed information
required for undertaking assessment of the efficacy of such measures.
Petitioner’s submission
8.4.8 LTIS (Demand Based Tariff): All new consumers under Three Phase LTIS shall
come under this tariff category only. Corresponding changes (necessitated on
account of merger of LTIS-I and LTIS-II) have been proposed for this tariff
subcategory. BSEB would like to encourage its consumers to opt for this sub-
category as this would do away with the requirement for computation of connected
load. The Consumer would be required to pay according to demand imposed on the
system rather than on the basis of connected load. However, existing consumers
under LTIS-I & LTIS-II tariff shall have option to continue under LTIS category.
Commission’s view
8.4.9 Firstly, the LTIS-I and LTIS-II represent different sizes of industrial consumer with
different consumption pattern, loading requirement and paying capacity. Thus, the
tariff for the two categories cannot be merged unless the tariff implication of such
merger on the consumers pertaining to the two categories is analysed in detail.
Hence the Boards proposal is being rejected.
Change in existing terms and conditions of tariff f or LT and HT consumers
Petitioner’s submission
8.4.10 LT Consumers - Change in nomenclature of demand bas ed tariff category:
BSEB has proposed change in the nomenclature of demand based tariff category
from sub-category name (A) to sub-category name (D). It’s easy to identify category
with nomenclature of ‘D’ for demand based tariff.
Commission’s view
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 239
8.4.11 The Commission accepts the change in nomenclature for denotation of demand
based tariff as proposed by the Board.
Petitioner’s submission
8.4.12 Monthly Minimum Charges: BSEB has proposed increase in the MMC for DS-I
(Metered), DS-II (Metered), DS-III (Metered), LITS (D) and IAS-I (Metered) keeping in
view the increased hours of supply and increase in specific consumption of these
consumer categories. This has also been done to ensure reasonable recovery of
fixed charges incurred by BSEB which is not being recovered fully. For FY 2012-13,
BSEB has proposed total ARR of Rs. 7898.13 Crores out of which Rs. 2600.51
Crores are of fixed nature while Rs. 5297.61 Crores will be used for power purchase
and fuel cost of own generation. Currently, BSEB is able to recover only 27% & 40%
of fixed costs from demand/fixed charges based on the existing tariff & proposed
tariff respectively. In such scenario, it is very much necessary to levy MMC on
consumers so that BSEB can at least recover its fixed cost.
Commission’s view
8.4.13 The Commission is of the view that since two-part tariff has already been introduced
in almost all consumer categories (except KJ, DS-I and IAS-I) in the State, there is no
need for monthly minimum charges to be levied, provided the BSEB is able to
efficiently undertake metering/ billing activities. The Commission urges the BSEB to
meter all un-metered consumers on priority and bill them on actual consumption as
per applicable tariff without depending on Monthly Minimum Charges. The
Commission intends to gradually phase out the MMC in all consumer categories in its
future tariff orders.
Petitioner’s submission
8.4.14 Option to change to HTS-I category: BSEB has proposed that LTIS and PWW
consumers having connected load of more than 79 HP to 99 HP may avail supply
under HTS-I category at 11 kV. By doing so, both the parties (consumer and BSEB)
will get benefit. Consumers receive better quality and reliability of supply whereas
BSEB is able to control its losses and system overloading.
Commission’s view
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 240
8.4.15 The Commission is not clear on the intent of the BSEB in its proposal. The Option for
billing under HTS category for LTIS-II and PWW consumers with a connected load
between 79 HP to 99 HP has already been provided for in the previous tariff order for
FY 2011-12.
Petitioner’s submission
8.4.16 The LT terms and conditions of tariff require LT consumers whose connected load
includes motors of 3 HP and above to install shunt capacitors at the motor terminals
for maintaining power factor at 90% and above. BSEB proposes to exclude domestic
consumers and single phase non-domestic consumers from the applicability of this
clause of the tariff condition as such consumers do not have the knowledge to
compute the capacity of capacitor required and wherewithal to maintain required
capacitors.
Commission’s view
8.4.17 The Commission is of the view that installation of capacitors of requisite rating/
capacity is essential for maintaining good power factor and a stable and healthy
distribution network. Further, the aggregate impact of installations having motors of 3
HP and above would be immense on the system.
It is the duty of the Board to educate and create awareness amongst its consumers
for making such initiatives a success. In view of this the Boards proposal is rejected
and the Board is directed to take necessary steps for effective implementation of
installation of capacitors of requisite ratings at consumer installations.
The installation of shunt capacitors shall be done in accordance with in Chapter 6 of
the BERC (Bihar Electricity Supply Code), 2007. This being a matter related to the
Supply Code, in case any amendment is felt necessary by the Petitioner, the same
may be taken up separately.
Petitioner’s submission
8.4.18 Applicable to both LT and HT Consumers - Delayed Pa yment Surcharge (DPS):
As per the existing terms and conditions, the consumer is required to pay surcharge
on the entire principal amount even if the consumer has made partial payments.
BSEB has proposed to replace the word “principal” with “balance” so that the
consumers who pay partial bill amount will be required to pay DPS on the remaining
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Bihar Electricity Regulatory Commission Page 241
amount and not the entire amount. This would incentivize consumers to pay their bills
(even partial) and help BSEB in improving its cash collection. This change is being
proposed for both LT and HT consumer categories.
Commission’s view
8.4.19 The charging of DPS shall be done in accordance with Clause 10.12 of the BERC
(Bihar Electricity Supply Code), 2007. This being a matter related to the Supply
Code, in case any amendment is felt necessary by the Petitioner, the same may be
taken up separately however the Commission has considered and modified in the
terms and conditions of supply.
Petitioner’s submission
8.4.20 Additional of clause in Defective/ Damaged/ Burnt m eters supply: A new clause
has been added in the tariff schedule for defective/ damaged/ burnt meters supply as
provided under:
“In case of newly installed meter of a consumer becoming defective/ damaged/ burnt
after installation of meter and consumption of last 12 months is not available, the
consumer shall be billed provisionally on the basis of MMC or the average
consumption computed on the basis of past consumption whichever is higher. The
final billing of the consumer for the period of provisional billing shall be done on the
basis of average meter reading of the consumer for the subsequent 12 months after
installation of healthy meter.”
Commission’s view
8.4.21 The Commission has considered the proposal of the Board. The relevant terms and
conditions shall be modified in the tariff schedule for LT consumers.
Petitioner’s submission
8.4.22 Interest on Advance Payment: BSEB proposes to introduce interest on advance
payment made by consumers on outstanding balance on month to month basis at
Bank rate notified by RBI from time to time. This will encourage consumers to pay
bills in advance which will help BSEB in better and timely recovery of revenues. This
is proposed in line with clause no. 7.15 (2) of Bihar Electricity Supply Code.
Commission’s view
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Bihar Electricity Regulatory Commission Page 242
8.4.23 The clause 7.15 (2) of the BERC (Bihar Electricity Supply Code), 2007 is in respect
of security deposit. In view of the same the Petitioners proposal is not clear in its
intent and is being rejected as of now. The Petitioner may take up the matter
separately with the Commission.
Petitioner’s submission
8.4.24 Grace Period: The provision for a grace period of 10 days for payment of bills has
been done away with. The same has been proposed as the implementation of grace
period not only distorts the revenue cycle of the BSEB but also causes problems in
implementation of tariff as the billing software of BSEB does not have provision for
the same.
Commission’s view
8.4.25 The Commission has introduced the grace period only after detailed deliberations
with all stakeholders. Implementation is IT system related issue and can be
effectively handled through appropriate interventions. Accordingly, the proposal of
the Board is being rejected.
Petitioner’s submission
8.4.26 Penalty for bounced cheque: BSEB has been encouraging consumers to pay bills
through cheques as well. However it has been observed that some consumers have
been misusing this facility. To curb this intentional misuse of this facility it is proposed
that in case the cheque given by the consumer against the energy bills is
dishonoured by the bank then a penalty will be payable by such consumer. Action
against such consumers shall be taken as per clause 7.4 (h) and 10.9 of Bihar
Electricity Supply Code.
Clause 7.4 (h) and 10.9 of BERC which provides inter-alia
“7.4….. (h) After a minimum period of seven days, incase of dishonouring of the
cheque by the Bank (non-encashment of cheque)”
“10.9 In case of non-realisation of cheque, the licensee shall have right to increase
the security deposit from the consumers. The licensee shall also have the right to
take steps such as levying cheque dishonour charges or initiating other actions as
per law besides insisting on future payment by demand draft or by cash.”
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Bihar Electricity Regulatory Commission Page 243
Commission’s view
8.4.27 The clause 10.9 of the BERC (Bihar Electricity Supply Code), 2007 is in respect of
non-realisation of cheque. In view of the same the Petitioner’s proposal is being
rejected as of now. The Petitioner may take up the matter separately with the
Commission.
Petitioner’s submission
8.4.28 Supply Premium payable by consumers in notified are as: BSEB has proposed to
procure additional power purchase in FY 2012-13 to improve the supply situation in
Bihar. As directed by the Commission in its Tariff for FY 2011-12, BSEB has
proposed a Supply Premium to be payable by consumers who receive additional
hours of supply. It is proposed that BSEB intends to supply continuous power atleast
for 600 hours in a month to all LT consumers except Kutir Jyoti & Agricultural and
HTS-I consumers who lie in such areas. The continuous supply mean normal supply
excluding the duration of grid failure, plant failure of power supplier, any force
majeure condition, scheduled shut down, emergent breakdown and restriction of
power supply by the Commission under section 23 of Electricity Act, 2003 will be
required to pay 10% supply premium on demand/ fixed and energy charge and in
MMC.
Which provides inter-alia
“23 Directions to Distribution Licensee: if the appropriate Commission is of the
opinion that it is necessary or expedient so to do for maintaining the efficient supply,
securing the equitable distribution of electricity and promoting competition, it may, by
order, provide for regulating supply, distribution, consumption, or use thereof.”
Areas to which BSEB intends to supply electricity close to 600 (six hundred) hours
will be notified by BSEB and the proposed Supply Premium will be levied after such
notification.
Commission’s view
8.4.29 The Commission has already approved charging of premium tariff in notified areas
where the Board is supplying close to 24 hours of supply. The Commission is of the
view that it may be ensured that transmission and distribution network including other
infrastructure required to ensure close to 24 hours supply to the notified areas are
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 244
strengthened. Strenghthening of infrastructure may include interalia strengthening /
replacement of weak conductors, transformers and other electrical equipments
installed for supplying electricity to the notified areas, provision of appliances and
sparesand keeping technical teams ready round the clock for rectifying defects
leading to disruption of supply in these areas. A few telephones should be kept
operational for each notified area which should be manned round the clock for
receiving and responding to the complaints. These telephone numbers should be
widely publicised in the newspapers for the information of general public. BSEB must
ensure these steps for ensuring close to 24 hours supply of electricity to the notified
areas.
The Commission is not in favour of allowing any relaxation to the supply continuity
measure approved for charring of such premium tariff. Accordingly, the proposal of
the petitioner for levy of 10% premium on the basis of 600 hours of supply per month
is being rejected and the Board has to supply close to 24 hours with the conditions as
stated in the above para.
Petitioner’s submission
8.4.30 Voltage surcharge: BSEB has proposed voltage surcharge on applicable energy
and demand charges for consumers which receive supply at voltage levels lower
than the applicable voltage levels. BSEB would like to penalize the consumers to
receive supply at lower voltage levels. Receiving supply at lower voltage level is not
beneficial to both consumers and BSEB. By taking supply at appropriate voltage
level, Consumers receive better quality and reliability of supply whereas BSEB is
able to control its losses (transformation and I2R losses) and system overloading.
The surcharge will be symmetrical and will be 7.5% of the energy and demand
charges applicable to tariff category to which the consumer belongs. This surcharge
shall be applicable to:
• DS consumer category
• NDS consumer category
• LTIS consumer category
• PWW consumer category
• HTS - I and HTS - II consumer categories.
Commission’s view
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 245
8.4.31 The Commission in this tariff order has directed the Board to get a detailed Voltage
wise Cost of Supply (CoS) study conducted. The Commission shall make the tariffs
reflective of the voltage wise cost of supply on completion of such study. Therefore,
as of now, the above proposal of the Board is rejected.
Petitioner’s submission
8.4.32 Accounting of Partial payment: BSEB has proposed following order of priority for
accounting of the partial payment made by the LT and HT Consumers
• Statutory taxes and duties
• Additional Security
• DPS on arrears
• Principal arrears
• Current bill
Commission’s view
8.4.33 The Commission takes cognizance of the issue raised by the Petitioner. The relevant
terms and conditions shall be modified in the tariff schedule.
Petitioner’s submission
8.4.34 Applicable to HT Consumers - Reclassification of co ntract Demand: As per the
existing tariff category classification, the HT consumer as per its contract Demand
falls under the following tariff category:
• HTS- I: Consumers with contract demand between 75 KVA and 1500 kVA
• HTS-II: Consumers with contract demand between 1000 kVA and 10000 kVA
• HTS-III: Consumers with contract demand of 7.5 MVA
As evident from the above there is a significant overlap in the allowable contract
demand. A consumer with 1000 kVA can seek connection both under HTS-I and
HTS-II consumer categories. Similarly a consumer with contract demand of 7.5 MVA
can seek connection both under HTS-II and HTS-III tariff categories. To remove this
anomaly BSEB proposes following changes to the voltage range for applicable
contract demand:
• HTS- I: Consumers with contract demand between 75 KVA and 1500 kVA
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 246
• HTS-II: Consumers with contract demand between 1501 kVA and 10 MVA
• HTS-III: Consumers with contract demand of more than 10 MVA
Further it is also proposed that the consumers who get affected because of this
reclassification of contract demand can continue to avail supply at existing voltage
levels.
Commission’s view
8.4.35 The Commission is of the opinion that in order to assess the efficacy and implication
of the proposed reclassification of contract demand for the above mentioned
categories needs to be analysed in detail before any such decision is taken. The
BSEB has not even projected the number of consumers, connected load and sales
separately for the proposed reclassified categories for enabling analysis of separate
tariffs for such reclassifications.
Therefore, the proposal for reclassifications under the said categories is being
rejected. The BSEB is directed to propose such changes in tariff categories/
classifications only after providing detailed information required for undertaking
assessment of the efficacy of such measures.
Petitioner’s submission
8.4.36 MMC for HTS-I, HTS-II & HTS-III: BSEB proposes to restore minimum base energy
charge calculation on monthly basis from revised methodology in last Tariff Order for
FY 2011-12 dated 1st June, 2011. BSEB is purchasing additional power supply to
fulfil the requirement of the consumers and hence it is necessary that consumer
avails minimum level of energy during the month. The Hon’ble Commission has
introduced calculation of minimum base energy charge on annul basis in view of the
shortage in the power supply. Now, BSEB is purchasing additional power to meet
requirement of the consumers and giving enhanced power supply to all such
consumers. BSEB should be compensated for non-availment of supply by the
consumers. This has also been done to ensure reasonable recovery of fixed charges
incurred by BSEB which is not being recovered fully. For FY 2012-13, BSEB has
proposed total ARR of Rs. 7898.13 Crores out of which Rs. 2600.51 Crores are of
fixed nature while Rs. 5297.61 Crores will be used for power purchase and fuel cost
of own generation. Currently, BSEB is able to recover only 27% & 40% of fixed costs
from demand/fixed charges based on the existing tariff & proposed tariff respectively.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 247
In such scenario, it is very much necessary to levy MMC on consumers so that BSEB
can at least recover its fixed cost. Hence, it has become necessary for BSEB to seek
restoration of minimum base energy charge calculation on monthly basis.
Commission’s view
8.4.37 The Commission is of the opinion that since two-part tariff has already been
introduced for HTS consumers in the State, there is no need for monthly minimum
charges to be levied, provided the BSEB is able to efficiently undertake metering/
billing activities.
The Commission has done away with MMC on HTS consumers in this tariff order for
FY 2012-13. The Commission intends to gradually phase out the MMC in all
consumer categories in its future tariff orders.
Petitioner’s submission
8.4.38 Power factor rebate: BSEB has proposed changes in the existing provision for levy
of power factor rebate. The consumer would be required to maintain average monthly
power factor of the supply between 0.90 and 0.95. The consumer will be entitled to
receive rebate at rates indicated in the table below:
Range of power factor Proposed power factor rebate
For each increase of 0.01 in power factor above 0.95
0.5 (zero point five) percent on demand and energy charges (Actual recorded)
However if the monthly power factor falls below 0.90 the existing provisions for levy
of surcharge will be applicable;
Commission’s view
8.4.39 The Petitioner has not provided any reasoning for the above proposed changes in
the power factor rebate being allowed to consumers. In view of the same the
proposal is rejected.
Petitioner’s submission
8.4.40 Transformer Capacity: BSEB proposes insertion of additional clause in transformer
capacity. The proposed change is as shown below:
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 248
“Such cases shall be dealt as per the provisions of Bihar Electricity Supply Code,
2007. The contract demand of such HT consumer, except RTS consumers, shall be
revised to 2/3 of the transformer capacity. For RTS consumer, contract demand shall
be revised to 1/ 2 of the transformer capacity.”
Commission’s view
8.4.41 The Commission is of the opinion the contract demand cannot be directly linked with
the transformer capacity and consumers must be provided with enough flexibility to
install transformers in view of their expected future demand. Since the metering for
such connections is already being done on the HT side, the consumer bears the
excess burden of technical losses and does not harm the Board in any way. The
board may avoid any potential misuse by improving upon its metering system and
keeping increased vigil on such consumers. Accordingly, the prayer of the Board
regarding linking of contract demand to the capacity of the transformer installed for
HT connections is being rejected.
Petitioner’s submission
8.4.42 Cap on Overall Rebates: BSEB proposes cap on overall rebates admissible to
consumer at 4% to limit the revenue outflow. This will help in reduction of revenue
gap.
Commission’s view
8.4.43 The Petitioner has not provided any reasoning for the above proposed changes in
overall rebates being allowed to consumers. It is not understood that if any rebate is
being provided in lieu of efficiency levels being maintained by consumers or the
voltage at which he is drawing supply and is reflective of the actual cost of supply to
such consumers why the same should be withdrawn or limited. In view of the same
the proposal is rejected.
Petitioner’s submission
8.4.44 Withdrawal of rebate: In order to incentivise HT consumers for timely payments of
their bills. It is proposed that the consumer will not be entitled to claim any rebate
under any head in case of default of payment by the due date.
Commission’s view
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 249
8.4.45 There is already the provision of Delayed Payment Surcharge for encouraging
consumers to pay their bills on time. The rebates being offered may be due to
efficiency levels or voltage at which any such consumer is connected and is therefore
essential in passing on the benefits of lower cost of supply to such consumers and
the same is independent of the timeliness of his payment of electricity bills.
Therefore, the proposal of the Petitioner is rejected.
Petitioner’s submission
8.4.46 Miscellaneous & General Charges: BSEB has proposed revisions in existing
miscellaneous charges in view of increase in cost of material and labour.
Commission’s view
8.4.47 The Commission takes cognizance of the issue raised by the Petitioner. The relevant
miscellaneous and general charges shall be modified in the tariff schedule.
Petitioner’s submission
8.4.48 Charges for Tatkal Connection: BSEB in the past has received numerous requests
from its consumers for providing tatkal connections. In view of this facility demanded
by its consumers, BSEB proposes this scheme under which all consumer categories
other than High Tension and Railway may avail benefit of this scheme. The General
and Miscellaneous charges for the Tatkal connection will be 2 (Two) times of the
charges approved under the head general and miscellaneous charges. The
connection under this scheme shall be released by BSEB in half the time limit
prescribed by the Commission in the Supply Code from the date of completion of
prescribed procedural formalities and payment of applicable fees and charges. In
case BSEB fails to release connection within this time limit, BSEB will refund the
additional amount claimed to the consumer in the first energy bill.
Commission’s view
8.4.49 The Commission approves the Board’s proposal regarding the release of tatkal
connection to all consumer categories other than High Tension and Railway with the
following conditions:
• Additional option to the consumers
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Bihar Electricity Regulatory Commission Page 250
• The Tatkal connections shall be released by BSEB in half the time limit
prescribed in the Supply code for that consumer category.
• Two (2) times of the following charges approved under head miscellaneous and
general charges will be taken from the consumers willing to avail tatkal
connection:
o Application fees for new connection, and;
o Supervision, labour and establishment charge for service connection
• In case BSEB fails to release connection within this time limit, BSEB will refund
the additional amount claimed to the consumer in the first energy bill.
Petitioner’s submission
8.4.50 Development charges & one time application processi ng charge: BSEB has
proposed development charges as compensation for time and effort spent by it in
processing the application submitted by prospective consumers for release of new
connections. All applicants for new connections under different tariff categories will
be required to pay one time application processing charges in lumsump in order to
generate additional source of income to BSEB to bridge the revenue gap.
Commission’s view
8.4.51 The Commission is of the opinion that the Board is obliged to supply power under
Section 43 of the Electricity Act’ 2003 and therefore charging of Development
charges is not justified and proper. The Commission appreciates that the Board
needs to do a lot to improve quality of service to the consumers particularly in respect
of release of new connections. Accordingly, the proposal of the Petitioner related to
charging development charges and one time application processing charges to the
consumers is being rejected.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 251
8.5 Category/Sub-category wise changes proposed by BSEB and approved by the
Commission are discussed in respective sections.
Domestic Service (DS)
Petitioner’s submission
8.5.1 BSEB has proposed the following changes for this consumer category:
• Supply premium payable by consumers in notified areas
• To charge Kutir Jyoti Consumer having consumption in any month in excess of 30 units at mentioned tariff rates. However, if the maximum consumption upto 360 units is detected during period of preceding 12 months, such consumers will then be treated as DS-I or DS –II consumer as the case may be.
• Provisions of tariff slabs for KJ consumers for consumption of more than 30 units
• Introduction of fixed charge for DS- I (Metered)
• Change in Fixed Charge for KJ – Metered, DS - II consumers
• Change in MMC
Commission’s view
8.5.2 The proposal for levy of premium for supply in notified area has been dealt earlier in
this chapter and is not being repeated here. The Commission does not approve the
proposal for change in consumption slab and changes in MMC are not accepted.
Introduction of fixed charge for DS-I consumer metered category could result in
significant fixed financial liability on small rural consumer and is therefore not being
allowed. The proposed change in fixed charge for Domestic Service category is not
being approved. The Commission for the continuity of tariff structure would like to
continue with the existing methodology for computation of fixed charges.
Non-Domestic Service (NDS)
Petitioner’s submission
8.5.3 BSEB has proposed the following changes for this consumer category:
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 252
• Supply premium payable by consumers in notified areas
• Introduction of fixed charge for NDS- I (Metered)
• Change in coverage of NDS- III category – introducing applicability to ‘sanctum- sanctorum of religious places’ also.
Commission’s view
8.5.4 The proposal for levy of premium for supply in notified area has been dealt earlier in
this chapter and is not being repeated here. Introduction of fixed charge for NDS-I
consumer metered category could result in significant fixed financial liability on small
rural consumer and is therefore not being allowed.. The Commission for the
continuity of tariff structure would like to continue with the existing methodology for
computation of fixed charges. The Commission does not approve the change in
coverage of NDS –III category.
Irrigation & Agricultural Service (IAS)
Petitioner’s submission
8.5.5 BSEB has proposed following changes for this consumer category:
• Change in MMC
Commission’s view
8.5.6 The Commission does not approve the proposed changes in MMC for IAS category.
Low Tension Industrial Service (LTIS)
Petitioner’s submission
8.5.7 BSEB has proposed following changes for this consumer category:
• Supply premium payable by consumers in notified areas
• Merging of LTIS-I and LTIS- II consumer categories
• All new consumers under Three Phase LTIS shall come under LTIS (Demand based categories)
• Option to change to HTS-I category
• Change in MMC.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 253
Commission’s view
8.5.8 The proposal for levy of premium for supply in notified area has been dealt earlier in
this chapter and is not being repeated here. The Commission does not approve the
suggested merging of LTIS – I and LTIS – II sub-categories. The issues related to
consideration of all new consumers under three phase LTIS (Demand Based Tariff)
category and option to LTIS consumers having load more than 79 HP and 99 HP to
avail supply under HTIS – I at 11 kV have been dealt earlier in this chapter.
Public Water Works (PWW)
Petitioner’s submission
8.5.9 BSEB has proposed the following changes for this consumer category:
• Supply premium payable by consumers in notified areas
• Option to change to HTS-I category
Commission’s view
8.5.10 The proposal for levy of premium for supply in notified area has been dealt earlier in
this chapter and is not being repeated here. The petitioner’s proposal that PWW
consumers having load more than 79 HP and 99 HP may avail supply under HTIS – I
at 11 kV has been dealt earlier in this chapter. .
Street Light Services (SS)
Petitioner’s submission
8.5.11 BSEB has proposed following changes for this consumer category:
• Supply premium payable by consumers in notified areas
Commission’s view
8.5.12 The proposal for levy of premium for supply in notified area has been dealt earlier in
this chapter and is not being repeated here.
HTS-I, HTS-II, HTS-III and HTSS
Petitioner’s submission
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 254
8.5.13 BSEB has proposed following changes for this consumer category:
• Supply premium payable by consumers in notified areas
• Reclassification of contract Demand
• Increase in HTSS surcharge to 7.5% instead of 5% on demand and energy charges
• Change in MMC
Commission’s view
8.5.14 The proposal for levy of premium for supply in notified area and reclassification of
contract demand has been dealt chapter in this chapter. The proposed change
related to HTSS surcharge and MMC for HTS –I, HTS – II and HTS – III categories
has been dealt in the tariff schedule for HT supply.
Railway Traction Services (RTS)
Petitioner’s submission
8.5.15 BSEB has proposed following changes for this consumer category:
• Introduction of rebate for RTS tariff for availing supply at voltages higher than 132 kV
• Change in Load factor to 50% for calculation of minimum base energy
• Penalty to RTS if in any month the recorded maximum demand of the consumer exceeds 110% of the contract demand
Commission’s view
8.5.16 The Board has proposed rebate for RTS tariff for availing supply at higher than 132
kV therefore this proposal of the Board is accepted by the Commission. However, the
Commission does not approve others changes proposed by the petitioner related
Railway Traction Services.
Amendment to Supply Code
8.5.17 The Commission notified amendment in Bihar Electricity Suppply code, 2007 vide notification no. BERC- Regulation 6/06 (Part – IV- I) -02 dated 29.03.2012 where in the maximum contract demand at diifferent supply voltage have been revised. The Commission has considered the relevant amendments in this Tariff Order for FY 2012-13.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 255
8.6 Approved tariff categories for FY2012-2013
8.6.1 The approved tariff categories / sub-categories along with different slabs are given
below:
S.No. Category
1 Domestic Service (DS)
1.1 Kutir Jyoti (KJ)/ BPL Connection
(i) Kutir Jyoti / BPL (Rural)
Unmetered
Connected load: upto 60 Watt
Metered
Connected load: upto 60 watt
(ii) Kutir Jyoti / BPL (Urban)
Metered only
Connected load: upto 100 watt
1.2 Domestic - I (Rural)
Unmetered
Connected load: Upto 2 kW
Metered
Connected load: upto 2 kW
1.3 Domestic-II (DS-II)– Metered only
Urban
Single phase – upto 7 kW
Three phase – 5 kW and above
Rural
For connected load above 2 kW
1.3.1 Domestic II (DS-II) (D) – OPTIONAL
Demand based tariff
Contract demand between 5 kW and 70 kW
1.4 Domestic-III – Urban - Metered
Registered societies for their residential colonies , having not less than 15 houses/ flats in the colony. Residential colonies/ multistoried residential
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 256
S.No. Category complexes taking load in bulk at a single point wit h a minimum load o f 2 kW per flat/ house and maximum total load upto 7 0 kW.
2 Non-Domestic Services (NDS)
2.1 Non- Domestic Services - I : Rural
Unmetered
Connected load: Upto 2 kW
Metered
Connected load: Upto 2 kW
2.2 Non- Domestic Services - II: Urban and Rural A bove 2 kW
Metered
Connected load: upto 70 kW for urban consumers & above 2 kW for Rural consumers
2.2.1 Non-Domestic Services- II (D) – OPTIONAL
Demand based tariff
Contract demand between 5 kW and 70 kW
2.3 Non- DomesticServices - III: Metered (Places of worship etc.)
Connected Load: Upto 30 kW
2.3.1 Non-Domestic III (D) – OPTIONAL
Demand based tariff
Contract demand between 5 kW and 30 kW
3 Irrigation and Agricultural Service (IAS)
3.1 IAS - I
(i) Unmetered
Private tube wells including bonafide agricultural Operations.
(ii) Metered
Private tube wells including bonafide agricultural Operations and hatcheries, poultries and fisheries (Fish ponds)
3.2 IAS-II : Connected Load: Upto 100 HP
(i) Unmetered
(ii) Metered
4 Low Tension Industrial Services (LTIS)
4.1 LTIS-I: Upto 25 HP
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 257
S.No. Category
4.1.1 LTIS-I (D) – OPTIONAL
Demand based tariff - Contract demand upto 15 kW
4.2 LTIS-II: Above 25 HP upto 99 HP
4.2.1 LTIS-II (D) – OPTIONAL
Demand based tariff - Contract demand above 15 kW and upto 60 kW
5 Public Waterworks (PWW) upto 99 HP
6 Street Light Services
6.1 SS-I Metered Supply
6.2 SS-II Unmetered Supply
7 High Tension Supply
7.1 HTS-I – 11 /6.6 kV supply
For installations having contract demand of 75 kVA to 1500 kVA.
7.2 HTS-II – 33 kV supply
For installations having contract demand of 1000 to 10000 kVA
7.3 HTS –III - 132 kV supply
For installations having contract demand of 7.5 MVA and above
7.4 HTSS - 33/11 kV supply
Specified Services for Induction furnaces and allied loads.
8 Railway Traction Services (RTS)
RTS (At 132 kV supply or above)
RTS (At Lower than 132 kV supply)
9 Temporary Supply (LT & HT)
10 Seasonal Supply
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 258
8.6.2 The approved Tariff Schedule which shall be effective from 1st April 2012 is given in
Appendix –I.
Part A - Tariff Schedule for Low Tension Supply
Part B - Tariff Schedule for High Tension Supply
Part C - Miscellaneous and General Charges
The Board has proposed to revise the miscellaneous and general charges for FY
2012-13. The existing applicable miscellaneous and general charges have been
appoved in Tariff Order for FY 2011-12. The Wholesale price Index has increased.
The Miscellaneous and General Charges, which are essentially driven by the labour
and material costs have undergone significant amount of increase and the present
rates do not reflect the actual cost. So, the Commission finds it proper to revise the
General and Miscellaneous charges. The General and Miscellaneous charges as
approved by the Commission are provided in part C of this chapter. These charges
will be effective from the date of the applicability of new approved retail tariff.
Part D - Fuel and Power Purchase Cost Adjustment
FPPCA charges will be based on the formula given by the Commission in the Part D
of this chapter. The formula will be applied on monthly basis by BSEB after seeking
the regulatory approval.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 259
Appendix- 1
8.7 TARIFF SCHEDULE FOR RETAIL TARIFF RATES AND TER MS AND
CONDITIONS OF SUPPLY FOR FY 2012-13
(Effective from 01 st April, 2012)
PART - A: LOW TENSION SUPPLY
System of supply: Low Tension – Alternating Current, 50 cycles
Single Phase supply at 230 Volts
Three Phase supply at 400 Volts
The tariffs are applicable for supply of electricity to L.T consumers with a connected
load upto 70 kW for domestic and non-domestic category, upto 99 HP for industrial
(LTIS) and for public water works (PWW) category and upto 100 HP for irrigation
category.
– Single Phase supply upto 7.0 kW
– Three Phase supply 5.0 kW and above
CATEGORY OF SERVICE AND TARIFF RATES
1.0 DOMESTIC SERVICE
Applicability
This tariff is applicable for supply of electricity to domestic purposes such as lights,
fans, radios, televisions, heaters, air-conditioners, washing machines, air-coolers,
geysers, refrigerators, ovens, mixers and other domestic appliances including motor
pumps for lifting water for domestic purposes. This is also applicable to the common
facilities in the multistoried, purely residential apartments, buildings.
1.1 Kutir Jyoti Connection (KJ) – Rural / Urban
This will be applicable to (i) all huts (Kutir) and dwelling houses of rural and urban
families below the poverty line (BPL) (ii) houses built under schemes like Indira Awas
Yojana and similar such schemes for BPL families.
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Bihar Electricity Regulatory Commission Page 260
i) Hut (Kutir) means a living place with mud wall and thatched roof or house built
under Indira Awas Yojana and other similar schemes for BPL families which
shall not exceed 200 Sq ft area.
ii) The total connected load of Kutir Jyoti connection in a rural area should not
exceed 60 watts and for an urban connection it should not exceed 100 watts
and maximum consumption 30 units per month shall be allowed.
iii) Use of CFL both in rural areas and urban areas should be encouraged.
iv) In case it is detected that the norms prescribe d in para (i) and (ii) above
are violated, the Kutir Jyoti Tariff shall immediat ely become inoperative
and rates applicable to DS – I and DS- II category as the case may be, with
appropriate charge shall apply in such cases.
1.2 Domestic Service – I (DS – I)
This is applicable to domestic premises in rural areas for a load upto 2 kW not
covered by areas indicated under DS-II and not being fed from urban / town feeders.
1.3 Domestic Service – II (DS – II)
This is applicable for domestic premises in urban areas covered by Notified area
committee / Municipality / Municipal Corporation / Development Authority / All District
and Sub divisional towns / Block Head Quarters / Industrial areas /Contiguous Sub
urban areas and also areas getting power from Urban / Town feeders for single
phase supply for load upto 7 kW and three phase supply for load of 5 kW and above.
Rural consumers having sanctioned load above 2 kW will come under this category.
Consumer has the option to take single -phase or three-phase supply connection for
a load of 5KW.
1.4 Domestic Service – III (DS – III)
This is applicable for registered societies, for their residential colonies, having not
less than 15 houses / flats in the colony. Residential colonies / multistoried residential
complexes taking load in bulk at a single point with a minimum load of 2 kW per flat /
house and maximum total load upto 70 kW.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 261
TARIFF RATES
1.0 Domestic Service
Sl. Category of consumer Fixed charge (Rs.)
Energy charge (Paisa/ Unit.)
1.1 Kutir Jyoti - BPL Consumers
(i) K.J. (Rural) - (Consumption upto 30 units per month)
Unmetered Rs.50 /
connection / per month
X
Metered X 150 Ps/ unit
Subject to Monthly Minimum Charge of Rs.40 per month per connection.
(ii) K.J. (Urban) (consumption upto 30 units per month)
Metered only X
180 Ps/ unit
Subject to Monthly Minimum Charge of Rs.50 per connection per month.
Fuel and Power Purchase cost Adjustment (FPPCA) charges as applicable will be
charged extra however the same shall be provided by the State Government support
to consumers and will not be recovered from consumer.
Sl. Category of consumer
Fixed Charge (Rs.)
Energy Charges
Consumption in a month (Units)
Rate P/unit
1.2 DS – I : Connected load: Upto 2 kW only
Unmetered Rs.150/connection
/ per month X X
Metered
X
First 50 units 180
51-100 units 210
Above 100 units 250
X
Subject to Monthly Minimum Charge (MMC) of
1st kW – 40 units per month 2nd kW – 20 units per month
Fuel and Power Purchase cost Adjustment (FPPCA) charges as applicable will be
charged extra.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 262
Sl. Category of consumer
Fixed charge (Rs.)
Energy charges
Consumption in a month (Units)
Rate Ps/unit
1.3 DS – II (Metered) Single phase
Up to 7 kW First kw-Rs.50/ month/connection
Addl. kW-Rs.15 per kW or part thereof per month.
1-100 units
101-200 units
201-300 units
Above 300 units
260
320
385
490
Three Phase 5 kW and above
5 kW-Rs.230/ month/connection
Addl. kW-Rs.15 per kW or part thereof per month
Subject to monthly minimum charge for
1st kW - 40 units per month Additional kW or part thereof - 20
units per month
Fuel and Power Purchase Cost Adjustment (FPPCA) charges as applicable will be
charged extra.
Premium tariff will be charged as applicable in notified area.
OPTIONAL
Domestic - DS-II (D) – Demand Based
All consumers under DS-II category with 3 phase meter connection with contract
demand between 5 kW and 70 kW opting for demand based tariff shall be required to
pay at the rates indicated below:
Sl. Category of consumer
Demand charge (Rs./kW/month)
Energy charges
Consumption in a month (Units)
Rate Ps/unit
1.3.1 DS-II (D)-(OPTIONAL) Demand Based Tariff Contract demand
of 5 kW to 70 kW Rs. 60/kW per month or part thereof on recorded demand or contract demand whichever is higher.
1-100 units
101-200 units
201-300 units
Above 300 units
260
320
385
490
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 263
Sl. Category of consumer
Demand charge (Rs./kW/month)
Energy charges
Consumption in a month (Units)
Rate Ps/unit
Subject to (i) Monthly minimum charge of 50 units per month/kW on recorded demand or
contract demand, whichever is higher. (ii) If in any month the recorded maximum demand exceeds 110% of the contract
demand, that portion of the demand in excess of the contract demand will be billed at twice the normal rate.
Fuel and Power Purchase Cost Adjustment (FPPCA) charges as applicable will be
charged extra.
Premium tariff will be charged as applicable in notified area.
Sl. Category of consumer
Fixed charge (Rs.)
Energy charges
Consumption in a month (Units)
Rate (Ps/unit)
1.4 DS – III (Metered) Rs. 55/- kW/
month All units 385
Subject to monthly minimum charge For 1st kW – 40 units / flat per month Additional kW or part there of– 20
units/flat per month
FPPCA as applicable will be charged extra.
Premium tariff will be charged as applicable in notified area.
2.0 NON-DOMESTIC SERVICE (NDS)
Applicability
This is applicable for supply of electrical energy for non-domestic consumers having
sanctioned load upto 70 kW, using electrical energy for light, fan and power loads for
non – domestic purposes like shops, hospitals, nursing homes, clinics, dispensaries,
restaurants, hotels, clubs, guest houses, marriage houses, public halls, show rooms,
centrally air-conditioning units, offices, commercial establishments, cinemas, X-ray
plants, non – government schools, colleges, libraries and research institutes,
boarding / lodging houses, libraries, railway stations, fuel/oil stations, service
stations, All India Radio / T.V. installations, printing presses, commercial trusts,
societies, banks, theatres, circus, coaching institutes, common facilities in
multistoried commercial office / buildings Government and semi–government offices,
public museums and other installations not covered under any other tariff schedule.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 264
Government educational institutions, their hostels and libraries, Government
hospitals and government research institutions and non – profitable government
aided educational institutions their hostels and libraries.
Non-profit recognized charitable cum public institutions.
Places of worship like temples, mosques, gurudwaras, churches etc. and burial /
crematorium grounds.
2.1 Non – Domestic Service (NDS-I)
Applicable to loads upto 2 kW in rural areas not covered by areas indicated under
NDS – II and not being fed from urban / town feeders.
TARIFF RATES – NDS - I
Fixed charge (Rs.) Energy charges
Consumption in a month (Units)
Rate ps/unit
2.1 NDS- I Unmetered Rs.200/connection/ per
month x X
Metered x 1-100 units 210 x 101-200 units 250 x Above 200 units 285 x Subject to monthly minimum
charge of 50 units per kW
FPPCA charges as applicable will be charged extra.
Premium tariff will be charged as applicable in notified area. .
2.2 Non – Domestic Service – NDS – II (Metered)
Applicable to loads upto 70 kW in urban areas covered by Notified Area Committees
/ Municipalities / Municipal Corporations / Regional Development Authorities / District
and Sub – divisional towns / Block headquarters / Industrial areas / contiguous sub
urban areas getting power from urban / town feeders, except those covered under
NDS-III.
Rural consumers having sanctioned load above 2 kW will also come under this
category.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 265
TARIFF RATES – NDS - II
Sl. Fixed charge (Rs.) Per month
Energy charges Consumption in a month (Units)
Rate ps/unit
2.2 NDS - II Single phase
Rs.180 /kW or part thereof upto 7 Kw
1-100 units 470 101-200 units 500 Above 200 units 540
Three Phase Rs.200/kW or part thereof for loads of 5 kW and above
Subject to a monthly minimum charge of 50 units/kW or part thereof
FPPCA charges as applicable will be charged extra.
Premium tariff will be charged as applicable in notified area.
OPTIONAL
2.2.1 Non-Domestic Service - NDS – II (D) – Demand Based
All those consumers under NDS-II with 3 phase supply and contract demand
between 5 kW and 70 kW opting for demand based tariff shall be required to pay at
the rates indicated below:
Sl. Category of consumer
Demand charge (Rs./kW/month)
Energy charges
Consumption in a month (Units)
Rate ps/unit
2.2.1 NDS-II (D) – (OPTIONAL) Demand Based Tariff Contract demand
of 5 kW to 70 kW Rs. 250/kW per month or part thereof on recorded demand or contract demand whichever is higher.
1-100 units
101-200 units
Above 200 units
470
500
540
Subject to (i) Monthly minimum charge of 70 units per month/kW on recorded demand or
contract demand, whichever is higher. (ii) If in any month the recorded maximum demand exceeds 110% of contract
demand, that portion of the demand in excess of the contract demand will be billed at twice the normal rate.
Fuel and Power Purchase Cost Adjustment (FPPCA) charges as applicable will be
charged extra.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 266
Premium tariff will be charged as applicable in notified area.
2.3 Non-Domestic Service - NDS – III (Metered)
This is applicable for places of worship like temples, mosques, gurudwaras, churches
etc. and burial / crematorium grounds. If any portion of the premises is used for
commercial purposes, a separate connection shall be taken for that portion and NDS-
II tariff schedule shall be applicable for that service.
TARIFF RATES – NDS - III
Sl. Fixed charge (Rs.) Energy charges
Consumption in a month (Units)
Rate ps/unit
2.3 NDS - III Rs.80 /kW with minimum of
Rs.165 per connection / month For load upto 30 KW.
1-100 units 275
101-200 units 350
Above 200 units 430
Subject to monthly minimum charge of 50 units/kW or part thereof.
FPFCA charges as applicable will be charged extra.
Premium tariff will be charged as applicable in notified area.
OPTIONAL
2.3.1 Non-Domestic Service - NDS – III (D) – Demand Based
All those consumers under NDS-III category with 3 phase supply and with contract
demand between 5 kW and 30 kW opting for demand based tariff shall be required to
pay at the rates indicated below:
Sl. Category of consumer
Demand charge (Rs./kW)
Energy charges
Consumption in a month (Units)
Rate Ps/unit
2.3.1 NDS-III (D) – (OPTIONAL) Demand Based Tariff Contract demand
of 5 kW to 30 kW Rs. 80/kW per month or part thereof on recorded demand or contract demand whichever is higher.
1-100 units 101-200 units Above 200 units
275
350 430
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 267
Sl. Category of consumer
Demand charge (Rs./kW)
Energy charges
Consumption in a month (Units)
Rate Ps/unit
Subject to (i) Monthly minimum charge of 70 units per month/kW on recorded demand or
contract demand, whichever is higher. (ii) If in any month the recorded maximum demand exceeds 110% of contract
demand, that portion of the demand in excess of the contract demand will be billed at twice the normal rate.
Fuel and Power Purchase Cost Adjustment (FPPCA) charges as applicable will be
charged extra.
Premium tariff will be charged as applicable in notified area.
3.0 IRRIGATION and AGRICULTURE SERVICE (IAS)
Applicability
This is applicable for supply of electrical energy for bonafide use for agricultural
purposes including processing of Agricultural Produce, confined to chaff - cutter,
thrasher, cane crusher and rice Huller when operated by the agriculturist in the field
or farm and does not include rice mills, flour mills, oil mills, dal mills or expellers.
This is also applicable to hatcheries, poultries (with more than 1000 birds) and
fisheries (fish ponds).
3.1 IAS - I
This is applicable for all purposes indicated above including private tube wells.
Tariff Rates
Unmetered Supply
Rural feeder - Rs.120 / HP per month
Urban feeder - Rs.145 /HP per month
Note: Hatcheries, poultries and fisheries are not c overed under unmetered
supply they have to be metered only.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 268
Metered supply
Rural feeder
Energy Charges– 100 Ps/unit
Urban feeder
Energy Charges– 150 Ps/unit
Subject to monthly minimum energy charges of
Rural feeder - Rs. 85/HP per month
Urban feeder - Rs.130/HP per month
Fuel and Power Purchase cost Adjustment (FPPCA) charges as applicable will be
charged extra however the same shall be provided by the State Government support
to consumers and will not be recovered from consumer.
3.2 IAS – II
This is applicable to state tube wells / state lift irrigation pumps / state irrigation
pumps upto 100 HP.
Unmetered Supply
Rural feeders - Rs.900 /HP per month
Urban feeders - Rs.1000/HP per month
Metered supply
Rural feeder
Energy Charges– 600 Ps/unit
Urban feeder
Energy Charges– 700 Ps/unit
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 269
Subject to a monthly minimum energy charge of 225 units /HP per month.
FPPCA charges as applicable will be charged extra.
4.0 LOW TENSION INDUSTRIAL SERVICE (LTIS)
Applicability
This is applicable for supply of electricity to low tension industrial consumers with a
connected load upto 99 HP and below including incidental lighting for industrial
processing or agro – industries purposes, arc welding sets, flour mills, oil mills, rice
mills, dal mills, atta chakki, Huller, expellers etc.
4.1 LTIS-I (Connected load upto 25 HP)
TARIFF RATES for LTIS - I
Fixed charge (Rs.) Energy charges
Consumption in a month (Units) Rate (ps/unit)
4.1 LTIS-I (Connected load upto 25 HP) Rs.85/HP or part
thereof / per month All units 495
Subject to monthly minimum charge of 70 units/HP or part thereof.
FPPCA charges as applicable will be charged extra.
Premium tariff will be charged as applicable in notified area.
OPTIONAL
4.1.1 LTIS-I (D) Contracted demand 5 kW to 15 kW - Demand Based Tariff
All those consumers under LTS-I category with 3 phase supply and with contract
demand 5 kW to 15 kW opting for demand based tariff shall be required to pay at the
rates indicated below:
Sl. Category of consumer
Demand charge (Rs./kW)
Energy charges
Consumption in a month (Units)
Rate Ps/unit
4.1.1 LTIS-I (D) (Demand Based Tariff) (OPTIONAL)
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 270
Sl. Category of consumer
Demand charge (Rs./kW)
Energy charges
Consumption in a month (Units)
Rate Ps/unit
Contract demand 5 kW to 15 kW
Rs. 170/kW per month or part thereof on recorded demand or contract demand whichever is higher.
All units
495
Subject to (i) Monthly minimum charge of 125 units per month/kW on recorded
demand or contract demand, whichever is higher. (ii) If in any month the recorded maximum demand exceeds 110% of
contract demand, that portion of the demand in excess of the contract demand will be billed at twice the normal rate.
Fuel and Power Purchase Cost Adjustment (FPPCA) charges as applicable will be
charged extra.
Premium tariff will be charged as applicable in notified area.
4.2 LTIS-II (Connected load above 25 HP and upto 99 HP)
Sl. Fixed charge (Rs.)
Energy charges
Consumption in a month
(Units)
Rate
(Ps/unit)
4.2 LTIS-II (Connected load above 25 HP and upto 99 HP)
Rs.110/HP or part
thereof per month All units 530
Subject to monthly minimum charge of 100
units/HP or part thereof.
FPPCA charges as applicable will be charged extra.
Premium tariff will be charged as applicable in notified area.
Consumers with a connected load above 79 HP and upto 99 HP have option to avail
power under LTIS / HTS category.
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OPTIONAL
4.2.1 LTIS-II (D) (Contract demand above 15 kW and upto 70 kW – Demand
Based Tariff)
All those consumers under LTS-II category with 3 phase supply and with contract
demand above 15 kW and upto 70 kW opting for demand based tariff shall be
required to pay at the rates indicated below:
Category of consumer
Demand charge (Rs./kW)
Energy charges
Consumption in a month (Units)
Rate Ps/unit
4.2.1 LTIS-II (D) (Demand Based Tariff) (OPTIONAL)
Contract demand
above 15 kW and
upto 70 kW
Rs. 195/kW per
month or part
thereof on
recorded demand
or contract
demand
whichever is
higher.
All units
530
Subject to (i) Monthly minimum charge of 180 units per month/kW on recorded demand or contract
demand, whichever is higher. (ii) If in any month the recorded maximum demand exceeds 110% of contract demand,
that portion of the demand in excess of the contract demand will be billed at twice the normal rate.
Fuel and Power Purchase Cost Adjustment (FPPCA) charges as applicable will be
charged extra.
Premium tariff will be charged as applicable in notified area.
5.0 PUBLIC WATERWORKS (PWW) (Connected load upto 99 HP)
Applicability
This is applicable to public water works, sewerage treatment plant and sewerage
pumping stations functioning under state government and state government under
takings and local bodies.
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Sl. Fixed charge (Rs.) Energy charges
Consumption in a month (Units)
Rate (Ps/unit)
5.0 PUBLIC WATERWORKS (PWW) (Connected load upto 99 HP) Rs. 190/HP or part thereof
per month All units 650
Subject to monthly minimum charge of 165 units / HP or part thereof.
FPPCA charges as applicable will be charged extra.
Premium tariff will be charged as applicable in notified area.
Consumers with a connected load above 79 HP and upto 99 HP have the option to
avail power under PWW / HTS category.
6.0 STREET LIGHT SERVICES (SS)
Applicability
This is applicable for supply of electricity for street light system including signal
system in corporation, municipality, notified area, committees, panchayats etc. and
also in areas not covered by municipality and notified area committee provided the
number of lamps from a point of supply is not less than five. Also applicable for
Traffic Lights, Mast lights / Blinkers etc.
Tariff Rates
6.1 SS-I Metered Supply
All units – 650 Ps. /unit
Subject to monthly minimum charge of:-
i) Gram Panchayats – 160 units / kW or part thereof
ii) For Nagar Palika / NAC / Municipality – 220 units / kW or part thereof
iii) For Municipal Corporations – 250 units / kW or part thereof
FPPCA charges as applicable will be charged extra.
Premium tariff will be charged as applicable in notified area.
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6.2 SS-II Unmetered Supply
Fixed Charges
i) Gram Panchayats – Rs. 250 per 100 W/month or part thereof
ii) For Nagar Palika / NAC / Municipality – Rs. 325 per 100 W/month or part thereof
iii) For Municipal Corporations – Rs. 400 per100 W/month or part thereof
FPPCA charges as applicable will be charged extra.
Premium tariff will be charged as applicable in notified area.
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TERMS AND CONDITIONS OF LOW TENSION TARIFF
The foregoing tariffs are subject to the following conditions:
1. Rebate for prompt payment
The due date for making payment of energy bills or other charges shall be 15 days
from the date of issue of the bill. Rebate will be allowed for making payment of
energy bills on or before due date specified in the bill as given below:
i. Kutir Jyoti (Unmetered) Rs.2/- per connection per month.
ii. DS-I and NDS-I (Unmetered) Rs.3/- per connection per month.
iii. Agricultural and Irrigation pumpsets
(Unmetered)
Rs.5/- per HP/month
iv. Street Lights (Unmetered) Rs.3/- per connection/month
v. All metered categories 10 paise per unit, on units billed
In case a consumer makes full payment after due date but within 10 days after the
due date, no DPS shall be leviable for this period but rebate for prompt payment will
not be admissible.
2. Accounting of Partial payment
All payment made by consumers in full or part shall be adjusted in the following order
of priority:
a) Statutory taxes and duties on current consumption
b) Arrear of Statutory taxes and duties
c) Delayed payment surcharge
d) Balance of arrears
e) Balance of current bill
3. Delayed Payment Surcharge (DPS)
In case a consumer does not pay energy bills in full within 10 days grace period after
due date specified in the bill, a delayed payment surcharge of one and half (1.5)
percent per month or part thereof on the outstanding principal amount of bill will be
levied from the due date for payment until the payment is made in full without
prejudice to right of the licensee to disconnect the supply in accordance with Section
56 of the Electricity Act, 2003. The licensee shall clearly indicate in the bill itself the
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total amount, including DPS, payable for different dates after the due date after
allowing for the grace period of 10 days. No DPS shall be charged on DPS arrear.
The bill shall indicate the energy charges for the month, arrears of energy charges
and DPS separately.
4. Duties and Taxes
Other statutory levies like electricity duty or any other taxes, duties etc., imposed by
the State Government / Central Government or any other competent authority, shall
be extra and shall not be part of the tariff as determined under this order.
5. Defective / Damaged / Burnt meters supply
In case of meter being defective / damaged / burnt the Board or the consumer as the
case may be, shall replace it within the specified period prescribed in “Standards of
Performance for Distribution Licensee”, Regulations issued by the Commission.
Till defective / damaged / burnt meter is replaced, the consumption will be assessed
and billed on an average consumption of last 12 months from the date of meter being
out of order. Such consumption shall be treated as actual consumption for all
practical purposes including calculation of electricity duty until the meter is replaced/
rectified.
In cases of newly installed meter of a consumer becoming defective/ damaged/ burnt
after installation of the meter prior to completion of 12 months since its installation,
the billing for the period for such defective/ damaged/ burnt meter, till it is not
replaced, shall be done on the basis of average monthly consumption of the
consumer or the MMC whichever is higher.
6. Shunt Capacitor Installation
a) Every LT consumer including irrigation pump set consumers whose
connected load includes induction motor (s) of capacity 3 HP and above and
other low power factor consuming appliances shall arrange to install low
tension shunt capacitors of appropriate capacity at his cost across terminals
of his motor (s). The consumer shall ensure that the capacitors installed by
him are properly matched with the actual rating of the motor so as to ensure
power factor of 90%.
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b) All LT consumers having welding transformers will be required to install
suitable shunt capacitor (s) of adequate capacity so as to ensure power factor
of not less than 90%.
c) The capacitors shall be of standard manufacture and meet the Bureau of
Indian Standards specification.
d) Consumers not complying to above shall be liable to pay a surcharge of 5%
(five percent) of the billed amount excluding DPS till the capacitors are
installed.
e) Any LT consumer in whose case, the meter installed has power factor
recording feature and who fails to maintain power factor of 90% in any month
shall pay a surcharge of 5% (five percent) of the billed amount excluding DPS
till the defective capacitors are replaced and power factor of 90% is
maintained.
f) No new supply to LT installations having low power factor consuming
equipment such as induction motor of 3 HP and above or welding
transformers etc., will be released unless shunt capacitors are installed to the
satisfaction of the Board.
g) The ratings of shunt capacitor to be installed on the motors of different ratings
are provided in the “Electric Supply Code” notified by the Commission.
6. Premium on Consumers in notified areas
All LT consumers except Kutir Jyoti and Agricultural consumers in the notified areas
where BSEB intends to supply electricity close to 24 hours shall pay 10% premium
on demand/fixed and energy charge and in MMC.
It may be ensured that transmission and distribution network including other
infrastructure required to ensure close to 24 hours supply to the notified areas are
strengthened. Strenghthening of infrastructure may include interalia strengthening /
replacement of weak conductors, transformers and other electrical equipments
installed for supplying electricity to the notified areas, provision of appliances and
spares and keeping technical teams ready round the clock for rectifying defects
leading to disruption of supply in these areas. A few telephones should be kept
operational for each notified area which should be manned round the clock for
receiving and responding to the complaints. These telephone numbers should be
widely publicised in the newspapers for the information of general public. BSEB must
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ensure these steps for ensuring close to 24 hours supply of electricity to the notified
areas.
Such areas where BSEB intends to strenghthen the infrastructure and provide
facilities as mentioned above and to supply electricity close to 24 (twenty four) hours
shall be notified by BSEB and premium shall be levied after notification of such area
by BSEB. The continuous supply shall mean the normal supply for nearly 24 hours
excluding the grid failure, any force majeure condition, scheduled shut down and
emergent breakdown beyond the control of BSEB.
7. Charges to Tatkal Connections (Optional)
If the any consumer (other than High Tension and Railway) opts for availing
connection under tatkal scheme, the Board shall release the tatkal connection to
such consumer with the following conditions:
• The Tatkal connections shall be released by BSEB in half the time limit
prescribed in the Supply code for that consumer category.
• Two (2) times of the following charges approved under head miscellaneous and
general charges will be taken from the consumers willing to avail tatkal
connection:
o Application fees for new connection, and;
o Supervision, labour and establishment charge for service connection
• In case BSEB fails to release connection within this time limit, BSEB will refund
the additional amount claimed to the consumer in the first energy bill.
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PART - B: HIGH TENSION SUPPLY
7.1 HTS – I (11 kV/6.6 kV)
Applicable for supply of electricity for use in installations with a minimum contract
demand of 75 kVA and maximum contract demand of 1500 kVA.
Character of service: AC, 50 cycles, 3 phase at 11 kV or 6.6 kV.
TARIFF RATES
Demand charge Rs./ kVA / Month of billing demand
Energy charges Paise / kWh
270 All units – 535
(i) The billing demand shall be the maximum demand recorded during the month
or 85% of the contract demand whichever is higher.
(ii) Surcharge of 7.5% will be levied on the demand and energy charges for
supply at 6.6 kV.
(iii) If in any month the recorded maximum demand exceeds 110% of contract
demand, that portion of the demand in excess of the contract demand will be
billed at twice the normal charges.
Premium on HTS-I consumers in notified areas
All HTS-I consumers in the notified areas where BSEB intends to supply close to 24
hours shall pay 10% premium on demand/fixed and energy charge.
It may be ensured that transmission and distribution network including other
infrastructure required to ensure close to 24 hours supply to the notified areas are
strengthened. Strenghthening of infrastructure may include interalia strengthening /
replacement of weak conductors, transformers and other electrical equipments
installed for supplying electricity to the notified areas, provision of appliances and
spares and keeping technical teams ready round the clock for rectifying defects
leading to disruption of supply in these areas. A few telephones should be kept
operational for each notified area which should be manned round the clock for
receiving and responding to the complaints. These telephone numbers should be
widely publicised in the newspapers for the information of general public. BSEB must
ensure these steps for ensuring close to 24 hours supply of electricity to the notified
areas.
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Such areas where BSEB intends to strenghthen the infrastructure and provide
facilities as mentioned above and to supply electricity close to 24 (twenty four) hours
shall be notified by BSEB and premium shall be levied after notification of such area
by BSEB. The continuous supply shall mean the normal supply for nearly 24 hours
excluding the grid failure, any force majeure condition, scheduled shut down and
emergent breakdown beyond the control of BSEB.
FPPCA charges as applicable shall be charged extra.
7.2 HTS – II (33 kV)
This is applicable for use in installations with a minimum contract demand of 1000
kVA and maximum contract demand of 15,000 kVA.
Character of service: AC, 50 cycles, 3 phase at 33 kV.
TARIFF RATES
Demand charge Rs. / kVA / Month of billing demand
Energy charges (Paise / unit)
270 All units - 520
(i) The billing demand shall be the maximum demand recorded during the month or
85% of the contract demand whichever is higher.
(ii) If in any month the recorded maximum demand exceeds 110% of contract
demand, that portion of the demand in excess of the contract demand will be
billed at twice the normal charges.
FPPCA charges as applicable shall be charged extra.
7.3 HTS – III (132 kV)
This is applicable for installations with a minimum contract demand of 7.5MVA.
Character of service: AC, 50 cycles, 3 phase at 132 kV
TARIFF RATES
Demand charge
Rs. / kVA / Month of billing demand
Energy charges
(Paise / unit)
270 All units – 510
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(i) The billing demand shall be the maximum demand recorded during the month or
85% of the contract demand whichever is higher.
(ii) If in any month the recorded maximum demand of the consumer exceeds 110%
of the contract demand, that portion of the demand in excess of the contract
demand will be billed at twice the normal charges.
FPPCA charges as applicable shall be charged extra.
7.4 HTSS (33 kV/11 kV)
This is applicable for supply of electricity to all consumers who have contract demand
of 300 kVA and more for induction furnace including Ferro Alloy loads. This tariff will
not apply to casting units having induction furnace of melting capacity of 500 Kg and
below.
The capacity of induction furnace shall be 600 kVA per metric tonne as existing for
determining the contract demand of induction furnace in the existing HTSS service
connections. However, for new connection and if the furnace is replaced with a new
one for the existing connections, the contract demand shall be based on total
capacity of the furnace and equipment as per manufacturer technical specifications,
and in case of difference of opinion, the provisions of clause Nos. 6.39 and 6.40 of
the Bihar Electricity Supply Code shall apply.
Those consumers who are having rolling/re-rolling mill in the same premises will take
additional contract demand for the rolling/re-rolling mill over and above the contract
demand required for induction furnace. The consumer will have the option to
segregate the rolling/re-rolling mill and take separate new connection following all
prescribed formalities with a separate transformer. This new connection, if taken by
the consumer will be allowed to be billed in appropriate tariff schedule. Such
rolling/re-rolling mill will be allowed to avail power at 33 kV.
Character of service: AC, 50 cycles, 3 phase at 33 kV or 11kV.
TARIFF RATES
Demand charge Rs. / kVA / Month of billing demand
Energy charges (Paise / unit)
700 All units 270
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(i) The billing demand shall be the maximum demand recorded during the month or
the contract demand whichever is higher.
(ii) If in any month the recorded maximum demand of the consumer exceeds 110%
of contract demand that portion of the demand in excess of the contract demand
will be charged at twice the normal charges.
(iii) If the power is availed at 11 kV a surcharge of five (5) % will be charged extra
on demand and energy charges.
FPPCA charges as applicable shall be charged extra.
8.0 Railway Traction Service (RTS)
Applicable to Railway Traction loads only.
Tariff rates at 132 kV
Demand charge
Rs. / kVA / Month of billing demand
Energy charges
(Paise / unit)
240 All units 520
(i) 15 Ps/unit of rebate will be provided for availing supply at voltages higher than
132 kV
(ii) 15 Ps/unit of surcharge will be billed for availing supply at lower voltages than
132 kV.
(iii) The billing demand shall be the maximum demand recorded during the month or
85% of the contract demand whichever is higher.
FPPCA charges as applicable shall be charged extra.
Time of Day tariff (ToD)
All HT consumers other than Railway traction have the option to take TOD tariff
instead of the normal tariff given in the schedule.
Under the Time of Day (ToD) Tariff, electricity consumption and maximum demand in
respect of HT consumers for different periods of the day, i.e. normal period, peak
load period and off-peak load period, shall be recorded by installing a ToD meter.
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The maximum demand and consumption recorded in different periods shall be billed
at the following rates on the tariff applicable to the consumer.
Time of use Demand Charges Energy Charges
(i) Normal period
(5:00 a.m. to 5:00 p.m)
Normal Rate Normal rate of energy charges
(ii) Evening peak load period
(5:00 p.m to 11.00 p.m)
Normal Rate 120% of normal rate of energy
charges
(iii) Off-peak load period
(11:00 p.m to 5:00 a.m)
Normal Rate 85% of normal rate of energy
charges
Applicability and Terms and Conditions of TOD tariff:
(i) TOD tariff will be optional for all HT consumers having contract demand below
200 kVA. TOD tariff will be mandatory for all HT consumers having contracted
demand of 200 kVA and above.
(ii) The facility of aforesaid TOD tariff shall not be available to HT consumers
having captive power plants and/or availing supply from other sources through
wheeling of power.
(iii) The HT industrial consumers who have installed standby generating plants
shall also be eligible for the aforesaid TOD tariff.
(iv) After electing TOD tariff, if any industrial HT consumer on account of some
reasons wants to go back to the earlier tariff according to the agreement, this
facility shall be available to him only once in two years.
(v) If the actual monthly consumption of such HT consumer, whose monthly
minimum charges are based on units, is less than minimum consumption, then
the difference (deficit) of units between the minimum consumption and actual
consumption shall be billed at normal rate of energy charge prescribed for
“Normal Period”.
(vi) In the event of applicability of TOD tariff to a consumer, the terms and
conditions of the applicable tariff (such as monthly tariff minimum charge, etc.)
shall continue to apply.
(vii) In case, the consumer exceeds 110% of the contract demand, the demand in
excess of contract demand shall be billed at twice the normal tariff applicable
for the day time i.e. 5:00 a.m. to 5.00 p.m. irrespective of the time of use.
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TERMS AND CONDITIONS OF HT TARIFF
The foregoing tariffs are subject to the following conditions:
1. Rebate for Prompt Payment
The due date for making payment of energy bills or other charges shall be 15 days
from the date of issue of the bill.
The tariff rates are subject to prompt payment rebate of 1 (one) paise per unit on
units billed provided the bill is paid by due date specified therein. If the consumer
makes full payment after due date but within 10 days after due date, no DPS shall be
leviable for this period but rebate for prompt payment will not be admissible.
2. Delayed Payment Surcharge (DPS)
In case of consumer does not pay energy bills in full within 10 days grace period after
due date specified in the bill, a delayed payment surcharge of one and half (1.5) %
per month or part thereof on the outstanding principal amount of bill will be levied
form the original due date for payment until the payment is made in full without
prejudice to right of the licensee to disconnect the supply in accordance with Section
56 of the Electricity Act, 2003. The licensee shall clearly indicate in the bill itself the
total amount, including DPS, payable for different dates after the due date after
allowing for the grace period of 10 days. No DPS shall be charged on DPS arrear.
3. Duties and Taxes
Other statutory levies like electricity duty or any other taxes, duties etc., imposed by
the State Government / Central Government or any other competitive authority, shall
be extra and shall not form part of the tariff as determined under this order.
4. Power Factor Surcharge
The average power factor (monthly) of the supply shall be maintained by the
consumer not less than 0.90.
If the monthly average power factor falls below 90% (0.9) he shall pay a surcharge in
addition to his normal tariff at the following rates:
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(i) For each fall of 0.01 in power factor
upto 0.80
One percent on demand and energy
charge
(ii) For each fall of 0.01 in power factor
below 0.80
1.5 (one and half) percent on demand
and energy charge (Actual Recorded)
If the average power factor falls below 0.70 consecutively for 3 months, the Board
reserves the right to disconnect the consumer’s service connection without prejudice
for the levy of the surcharge.
5. Power Factor Rebate
In case the average power factor (monthly) of the consumer is more than 90% (0.90)
a power factor rebate at the following rates shall be allowed.
For each increase of 0.01 in power
factor above 0.90 upto 0.95
0.5 (half) percent on demand and
energy charge (Actual Recorded)
For each increase of 0.01 in power
factor above 0.95
1.0 (one) percent on demand and
energy charges. (Actual Recorded)
6. Accounting of Partial payment
All payment made by consumers in full or part shall be adjusted in the following order
of priority:
a) Statutory taxes and duties on current consumption
b) Arrear of Statutory taxes and duties
c) Delayed payment surcharge
d) Balance of arrears
e) Balance of current bill
7 Transformer Capacity
The transformer capacity of HT consumer shall not be more than 150% of the
contract demand, consumer found to be utilizing transformer of higher capacity than
admissible for his contracted load, will fall under malpractice.
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If standard capacity is not available for exact requirement then relaxation in
transformer capacity upto 10% extra can be allowed in individual cases on request.
All HT/EHT consumers having contract demand of 200 kVA and above may be
allowed to have a stand by transformer, whose capacity shall not be more than the
main transformer. The technical/physical arrangement shall be approved by the
Board’s officer before it is installed. If any consumer violates the condition, then line
will be disconnected and standby facility shall be withdrawn.
Considering the special need of the Railway, the RTS consumer may be allowed to
have 100% extra i.e. 200% of the contract demand. Stand by transformer may also
be allowed, which should not be more than the capacity of the main transformer.
8 Defective / Damaged / Burnt meter replacement
In case of meter being defective / damaged / burnt the Board or the consumer as the
case may be shall replace the same within the period specified in “Standards of
Performance for Distribution Licensee” Regulations issued by the Commission. Till
defective meter is replaced the consumption will be assessed and billed on an
average consumption of last 12 months from the date of meter being out of order.
Such consumption shall be treated as actual consumption for all practical purposes
including calculation of electricity duty until the meter is replaced/ rectified.
In cases of newly installed meter of a consumer becoming defective/ damaged/ burnt
after installation of the meter prior to completion of 12 months since its installation,
the billing for the period for such defective/ damaged/ burnt meter, till it is not
replaced, shall be done on the basis of average monthly consumption of the
consumer or the MMC whichever is higher..
9. If the actual recorded demand of a consumer exceeds 110% consecutively for three
months Board may issue a notice and inform the consumer to get additional contract
demand sanctioned or to limit their drawal as per their contract. Otherwise Board will
take action as per provisions of the Act/Rules/Regulations.
10. The prevailing practice will continue for determining the contract demand of induction
furnaces in the existing services connections. However, for new connections and
where the furnaces are replaced in existing connections, contract demand shall be
based on the total capacity of the furnace and equipment as per manufacturer
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technical specifications and in case of difference of opinion, the provisions of clause
No.6.39 and 6.40 of Bihar Electricity Supply Code shall apply.
11. The Government of Bihar had issued “Industrial Incentive Policy Bihar-2006” in order
to create favourable environment and accelerated industrial growth of the State.
The Policy states -
(a) Existing and New Units:
“Working units at present and new units will avail exemption from AMG/MMG from
the date of declaration of the New Industrial Policy. The facility will be granted for a
period of five years”
(b) Sick units:
The following facilities are provided to sick units.
Exemption from Annual Minimum Guarantee (AMG), Monthly Minimum Guarantee
(MMG) and Delayed Payment Surcharge (DPS) would be available to the unit from
the date of declaration of the unit as sick unit. This facility would be admissible for a
period of five years.
The Board shall comply with the Industrial Policy of Government of Bihar and its
subsequent revisions if any till the time it remains applicable. Such Industrial Policy
shall be extended to other eligible consumers who are covered under this Policy.
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9.0 Temporary Supply (LT and HT)
9.1 Applicability
This tariff is for connection of temporary in nature for period of less than one year.
The applicability shall be as given in the respective category tariff rate schedule.
Temporary supply cannot be claimed by a prospective consumer as a matter of right
but will normally be arranged by the Board when a requisition is made giving due
notice subject to technical feasibility and in accordance with electricity supply code
issued by the Commission.
9.2 Tariff
Fixed charge and energy charge shall be chargeable at one and half times the
normal tariff as applicable to the corresponding appropriate tariff category.
9.3 Terms of Supply
a) Temporary supply under any category of service may be given for a period not
exceeding 30 days in the first instance, the duration of which, however may be
extended on month-to-month basis subject to maximum of one year.
b) In addition to the charges mentioned above, the consumer shall have to deposit
the following charges before commencement of the temporary supply:
(i) Estimated cost of erection of temporary service line and dismantling.
(ii) Cost of irretrievable materials which cannot be taken back to service.
(iii) Meter rent for the full period of temporary connection as per appropriate
Tariff Schedule and miscellaneous charges.
(iv) Rental on the cost of materials as per estimate framed but not payable
by the consumer shall be payable at the rate of Rs. 15/- per month on
every Rs. 100/- or part thereof.
(v) Ten per cent on the total cost of the estimate for the temporary service
connection to cover as security for loss of materials and contingencies. In
case such loss is not noticed, the amount will be refunded.
c) The applicants for temporary supply shall be required to make a deposit in
advance of the cost as detailed above including the energy consumption charges
estimated for full period on the basis of connected load. This will however, be
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adjusted against the final bill that will be rendered on disconnection of supply
month to month basis.
d) If the consumer intends to extend the temporary supply beyond the period
originally applied for, he will have to deposit in advance all charges as detailed
above including the estimated electricity consumption charges, for the period to
be extended and final bill for the previous period, as well.
e) The temporary supply shall continue as such and be governed by the terms and
conditions specified above until the supply is terminated or converted into
permanent supply at the written request of the consumer. The supply will be
governed by the terms and conditions of permanent supply only after the
consumer has duly completed all the formalities like execution of agreement,
deposit of security money, cost of service connection and full settlement of the
account in respect of the temporary supply etc.
10.0 Seasonal Supply (LT and HT)
1. Seasonal supply shall be given to any consumer on written request to the Board
subject to the following conditions.
Period of Supply Tariff Rate
1. Upto 3 consecutive months in a year Appropriate tariff plus 30 percent
2. More than 3 consecutive months and
upto 6 consecutive months in a year
Appropriate tariff plus 20 percent
3. More than 6 consecutive months and
upto 9 consecutive months in a year
Appropriate tariff plus 15 percent
4. More than 9 consecutive months but
less than one year
Appropriate tariff plus 5 percent.
2. The meter rent and other charges as provided in the appropriate tariff are applicable
to seasonal loads and would be charged extra for the entire period of supply.
3. The supply would be disconnected after the end of the period unless the consumer
wants the supply to be continued.
Any reconnection charges have to be borne by the consumer.
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4. Consumer proposing to avail seasonal supply shall sign an agreement with the Board
to avail power supply for a minimum period of 3 years in the case of HT, and 2 years
in the case of LT category of supply.
5. The consumers must avail supply in terms of whole calendar month continuously.
6. The consumer is required to apply for seasonal supply and pay initial cost and
security deposit as an applicant for normal electricity supply.
7. The consumer shall ensure payment of monthly energy bills within 7 days of its
receipt. The supply will be disconnected if payment is not made on due date.
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PART - C: MISCELLANEOUS AND GENERAL CHARGES
11.0 The Miscellaneous and General charges approved by the Commission are as below:
11.1 Meter Rent
Particulars Applicable Charges
Kutir Jyoti Rs.10/month
a) Single Phase LT except Kutir Jyoti Rs. 20/month
b) Three Phase LT
Upto 100 Amps
Rs. 50/month
c) LT meter with CT Rs. 500 / month
d) 6.6 kV and 11 kV HTS-I
(i) Metering at low voltage
(ii) Metering at 6.6/11 kV
Rs. 500 / month
Rs. 700 / month
e) 33 kV HT metering equipment for HTS-II and HTSS Rs. 3000 / month
f) 132 kV EHT metering equipment for HTS-III Rs. 15000 / month
g) 25 kV RTS Rs.3000/month
h) 132 kV RTS Rs.15000/month
11.2 Application fee for new connection / reduction of load / enhancement of load /
request for permanent disconnection/ request for ta tkal connection:
No. Category / class Rate
(i) Kutir Jyoti Rs.20.00
(ii) LT Single phase except Kutir Jyoti Rs. 75.00
(iii) LT Three phase Rs. 200.00
(iv) LT Industrial Rs. 300.00
(v) HT Connection Rs. 750.00
(vi) For tatkal connection Two (2) times the normal rate
11.3 Testing / Inspection of consumer’s installatio n:
No. Category / class Rate
(i) Initial Test / Inspection Free of cost
(ii) Subsequent test and inspection Rs. 100.00 for single phase
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 291
No. Category / class Rate
necessitated by fault in
installation or by not complying
with terms and conditions of
supply
connection
Rs. 200.00 for three phase LT
connection
Rs.800 for HT connection.
11.4 Meter Testing Fee:
No. Category / class Rate
(i) Single Phase meter (L.T.) Rs. 100.00
(ii) Three Phase meter (L.T.) Rs. 200.00
(iii) Three Phase meter with CT Rs. 300.00
(iv) Trivector and special type meter Rs. 1800.00
(v) 33 kV or 11 kV metering equipment Rs. 5000.00
(vi) 132 kV/220 kV metering equipment Rs. 8000.00
If the meter is tested at third party testing laboratory at the request of the consumer
then the fees charged by the testing laboratory will be payable by the consumer.
11.5 Removing / Re-fixing / Changing of Meter / Meter Bo ard at consumer’s request:
No. Category / class Rate
Cost of material, as
required, will be
borne by the
consumer
(i) Single Phase meter Rs. 200.00
(ii) Three Phase meter Rs. 400.00
(iii) Three Phase meter with CT Rs. 500.00
(iv) Trivector and special type meter Rs. 600.00
(v) High tension metering equipment Rs. 1200.00
11.6. Reconnection charge:
Sl.No . Category/class Rate
(i) Single Phase supply, LT Rs. 100.00
(ii) Three Phase supply other than LT industrial Rs. 200.00
(iii) Three Phase LT industrial supply Rs. 900.00
(iv) HT supply Rs. 3000.00
11.7 Supervision, Labour and Establishment charge f or service connection:
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 292
Sl.No. Category/class Rate
(i) Single Phase LT Rs. 400.00
(ii) Three Phase LT other than industrial Rs. 900.00
(iii) Three Phase industrial Rs. 1500.00
(iv) HT As per approved estimate
(v) For tatkal connection Two (2) times the normal rate
11.8 Security Deposit:
(a) The consumer (except Kutir Jyoti rural and Kutir Jyoti urban) shall pay initial
security deposit equivalent to the estimated energy charges including fixed /
demand charges for a period of two months or as per the provisions of Bihar
Electricity Supply Code notified by the Commission.
(b) All Central Government and State Government departments are exempted from
payment of security deposit. However all public sector undertakings and local
bodies shall pay security deposit, as applicable.
(c) The amount of security deposit obtained from the consumer is liable to be
enhanced every year, in April-May of next year on the basis of consumption
during previous years or as specified in clause 7.15 of Bihiar Electricity Supply
Code. In default of payment of additional security deposit, wherever payable
after review, the service line may be disconnected on serving thirty days notice
and connection thereafter can be restored only if the deposit is made in full along
with the prescribed reconnection charges and surcharge @1.5% per month or
part thereof on the amount of outstanding.
11.9 Interest on Security Deposit
Security deposit made by a consumer shall bear interest as specified in Bihar
Electricity Supply Code, payable at Bank rate notified by RBI from time to time. The
interest will be calculated for full calendar months only and fraction of a month in
which the deposit is received or refunded, shall be ignored. The interest for the
period ending 31st March shall be adjusted and allowed to the consumer in the
energy bill for May issued in June and in subsequent month (s), if not adjusted
completely against the bill for the month of May.
12.0 The other terms and conditions of supply of electricity not specially provided in this
tariff order will continue to be regulated by the provisions specified in the Bihar
Electricity Supply Code notified by the Commission.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 293
PART D: FORMULA FOR FUEL AND POWER PURCHASE COST A DJUSTMENT
The approved fuel and power purchase cost adjustment (FPPCA) formula is given
below:
FPPCA
(Paise /
kWh)
=
Qc(RC2-RC1)+Qo(RO2-RO1)+QPp(Rpp2 -Rpp1) X100
(QPg + QPp) x (1-L)
Where,
Qc =
=
Quantity of coal consumed during the adjustment period (in M.T)
(SHR x QPg) (1+TSL)x1000 / GCV
RC1 = Weighted average rate of coal supplied ex-power station coal yard as
approved by the Commission for the adjustment period in Rs. / M.T
RC2 =
Weighted average rate of the coal supplied ex-power station coal yard as
per actual for the adjustment period in Rs. / M.T
Qo =
=
Quantity of oil (in KL) consumed during the adjustment period
Generation (in MU) X Specific oil consumption approved by the
Commission (ml. / kWh)
RO1 = Weighted average rate of oil ex-power station (in Rs./KL) approved by
the Commission for the adjustment period
RO2 = Weighted average actual rate of oil ex-power station supplied (in Rs. /
KL) during the adjustment period
QPp = Power purchased from different sources and fed into Board’s system
(in MUs)
Rpp1 = Average rate of power purchase as approved by the Commission
(in Rs. / kWh)
Rpp2 = Average rate of power purchased during the adjustment period
(in Rs. / kWh)
QPg = Board’s own power generation (in MUs) at generator terminal – approved
auxiliary consumption
L = T & D loss as approved by the Commission or actual, whichever is lower.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 294
SHR = Station Heat Rate as approved by the Commission.
TSL = Transit and Stacking Loss as approved by the Commission.
GCV = Weighted average gross calorific value of coal fired at boiler front during
the adjustment period (in Kcal / Kg)
Note:
1) Amount of variable charges on account of change of cost of unknown
factors like water charges, taxes or any other unpredictable and unknown
factors not envisaged at the time of tariff fixation subject to prior approval
of the Commission
2) Adjustment, if any, to be made in the current period to account for any
excess / shortfall in recovery of fuel or power purchase cost in the past
adjustment period, subject to the approval of the Commission.
3) While charging the FPPCA in the energy bills, the consumption and rate
at which and the month for which the FPPCA is being charged must be
indicated in the bills.
The approved (FPPCA) formula is subject to following conditions:
(i) The basic nature of FPPCA is ‘adjustment’ i.e. passing on the increase or
decrease, as the case may be.
(ii) The operational parameters / norms fixed by the Commission in this tariff
order shall be the basis of calculating FPPCA charges.
(iii) The FPPCA will be recovered in the form of an incremental energy charge
(Rs/kwh) in proportion to the energy consumption and will be forming a part of
the energy bill to be served on monthly/bimonthly or any other periodical
basis as specified by the Commission.
(iv) Incremental cost of power purchase due to deviation in (respect of generation
mix) power purchase at higher rate, etc. shall be allowed only if it is justified to
the satisfaction of the Commission.
(v) Any cost increase by the Board by way of penalty, interest due to delayed
payments, etc. and due to operational inefficiencies shall not be allowed.
(vi) FPPCA charges shall be levied on all categories of consumers
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 295
(vii) The data in support of FPPCA claims shall be duly authenticated by an officer
of the Board, not below the rank of Chief Engineer on affidavit. Supported
with the certified copy of energy bills of power purchase, transmission and
RLDC charges, coal and its transportation cost, oil purchase bill and the
quantity of coal and oil consumed during the month.
(viii) Variation of FPPCA charge will be allowed only when it is five (5) paise and
more per unit.
(ix) The formula will be applied on monthly basis by BSEB after seeking the
regulatory approval. The incremental cost per kWh due to this FPPCA arrived
for a month shall be recovered in the subsequent month through energy bills
and so on. The BSEB shall, however, be obligated to provide all relevant
information to the Commission simultaneously and in any case where the
Commission observes any discrepancies, the same will be adjusted during
the subsequent month. This mechanism will provide administrative and
regulatory simplicity.
(x) The approved formula is subject to review, as the Commission may deem fit.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 296
9 Status of Directives issued by the Commission
9.1 General
9.1.1 The Commission in its previous Tariff Orders had issued a number of directives to
the Bihar State Electricity Board with an objective of attaining operational efficiency,
efficient manpower deployment and streamlining the flow of information, which would
be beneficial for the Petitioner, both in short and long term perspective. These
directives aim at creating a conducive, competitive and healthy environment for the
Petitioner to provide good quality of electricity supply and services to the consumers
at optimum and affordable costs. This Chapter deals with the compliance status of
the Directives and Commission‘s views thereon as well as new directives for
compliance and implementation by the Petitioner.
9.1.2 In all previous Tariff Orders, the Commission had observed that while there was
ample scope for reducing costs and increasing efficiency in the operations of BSEB,
serious efforts appeared to be lacking. It is in the above context that certain directives
were given by the Commission for compliance by the Board. The Commission
expected that Board would take prompt action on the directives and monitor their
implementation. Action is yet to be taken on most of the important directives, which
could make significant difference in operational efficiency and cost. In some cases
action has no doubt been initiated, but overall the seriousness with which the
directives were issued by the Commission does not appear to have gone home.
9.1.3 Implementation of these will be monitored by the Commission every quarter and their
non-compliance shall invite action under provisions of the Act.
9.1.4 Apart from these, there are certain other issues, not all of which may be directly
related to tariff as such, on which the Commission has been giving directions in its
Tariff Orders in the past. Since the Tariff Order covers in its scope analysis of the
performance of the utility, such directives are also considered necessary. Accordingly
such directives have also been included in this order.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 297
9.1.5 In the above background, the Commission is constrained to repeat most of the
directives which were given in the last Tariff Orders which have not been fully
compiled with, but also gives specific new directives.
9.2 Directives issued in Tariff Order of FY 2012-13 : Fresh Directives
9.2.1 Directive No. 1: Capitalization of Assets
The Commission directs the Board to submit the progress report on execution of R-
APDRP and other capital works being undertaken from FY 2011-12 onwards along
with source of funding on quarterly basis and provide data related to achievement of
loss reduction target under R-APDRP scheme. The Board is required to complete the
project as per schedule and ensure that T&D loss reduction targets are achieved so
that the central fund received under the scheme as loan is converted into grant as
stipulated in the scheme. This will avoid any chance of passing on of the inefficiency
of Board or its successor restructured companies to the consumers due to non-
conversion of loan into grant because of non-achievement of loss reduction target
under R-APDRP schemes
9.2.2 Directive No. 2: Strengthening the consumer complai nt Redressal mechanism
The Commission directs the Petitioner to instruct the concerned field officers to be
available in their offices on the specified days. Such days should be displayed at the
notice board in the offices of the Petitioner for information of consumers and also
publicised in newspapers having wide circulation in that area. This would ensure that
the consumers can contact concerned officer of BSEB and have their grievances
related to meter reading, billing etc. redressed. Further, the Commission directs the
Petitioner to organize camps in the field for collection of dues and awareness
creation for the benefit of the consumers. An annual status report in redressal of
grievance of consumers shall be submitted by the Board.
9.2.3 Directive No. 3: Circle wise Distribution Loss redu ction target
The Commission directs the Board to determine circle wise loss reduction on the
basis of energy accounting and audit and fix circle-wise loss reduction target and
prepare a detailed action plan for reduction of T&D losses. The Commission also
directs the Board to monitor implementation of all schemes and actions for reduction
of T&D losses and compliance report may be submitted to the Commission along
with the next tariff petition.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 298
9.2.4 Directive No. 4: Cost of Supply study
The Commission directs the Board to carry out appropriate studies backed by
energy accounting and audit to determine category wise and voltage wise T&D
losses and cost of supply and submit it to the Commission along with the next tariff
petition.
9.2.5 Directive No. 5: Business Plan and Investment Progr amme.
The Commission directs the Board or its successor restructured companies to submit
the business plan for generation, transmission and distribution functions separately
for a period of three years, i.e. FY 2013-14 to FY 2015-16 by September, 2012.
9.2.6 Directive No. 6: MYT filing for each function
The Commission directs the Petitioner or its successor restructured companies to file
separate MYT petitions for generation, transmission and distribution functions for the
first control period. FY 2013-14 will be the first year of the control period from FY
2013-14 till FY 2015-16.
BE
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Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
299
9.3
Dire
ctiv
es is
sued
in T
ariff
Ord
er o
f FY
200
6-07
Dire
ctiv
e
Dire
ctiv
e N
o.-1
: Cen
t pe
rcen
t met
erin
g
The
Com
mis
sion
dire
cted
the
Boa
rd th
at n
o el
ectr
ici
ty c
onne
ctio
n w
ill b
e re
leas
ed to
any
cat
egor
y of
con
sum
er
with
out a
met
er. T
he B
oard
sha
ll ta
ke im
med
iate
act
ion
to p
rovi
de m
eter
s to
all
such
unm
eter
ed c
onsu
me
rs a
nd
shal
l sub
mit
road
map
for
prov
idin
g m
eter
s to
all
the
se c
onsu
mer
s an
d pr
iorit
y sh
all b
e gi
ven
in p
rovi
ding
met
ers
to
dom
estic
and
com
mer
cial
con
sum
ers.
Met
erin
g pl
an h
enc
e sh
ould
be
subm
itted
to th
e C
omm
issi
on b
y 31
st M
arch
20
07 s
o as
to e
nabl
e th
e C
omm
issi
on to
rev
iew
the
pro
gres
s an
d is
sue
furth
er d
irect
ions
in th
e m
atte
r as
may
be
cons
ider
ed n
eces
sary
.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
The
Boa
rd s
tate
d th
at it
has
set
tar
get o
f ach
ievi
ng 1
00%
met
erin
g by
Mar
ch 2
013.
The
Boa
rd h
as p
rovi
ded
the
stat
us o
f m
eter
ing
as o
n S
epte
mbe
r’ 20
11:
Con
sum
er M
eter
ing:
Sl.
Cat
egor
y N
os. o
f C
onsu
mer
s N
os. o
f met
ered
C
onsu
mer
s N
os. o
f Def
ectiv
e /
unm
eter
ed c
onsu
mer
s 1
33 k
V (
Gov
t.)
16
16
-
2 33
kV
(P
vt.)
54
54
-
3 11
kV
HT
(Gov
t.)
458
280
178
4 11
kV
HT
(Pvt
.)
589
589
-
5 LT
CT
(G
ovt
. & P
vt.)
37
65
2339
14
26
6 3
Pha
se W
hole
Cur
rent
Met
er (
Gov
t. &
Pvt
.)
9683
8
4885
8
4798
0
7 S
ingl
e P
hase
(G
ovt.
& P
vt.)
25
0842
0
1510
735
99
7685
Sys
tem
Met
erin
g:
Sl.
Cat
egor
y N
os. o
f Met
erin
g po
int
Nos
. of m
eter
ed p
oint
N
os. o
f Def
ectiv
e / u
nmet
ered
po
int
BE
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Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
300
Dire
ctiv
e
1 33
kV
66
0 37
0 29
0
2 11
kV
15
74
1038
53
6
3 11
kV
HT
(G
ovt.)
44
670
13
836
30
834
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
The
Boa
rd h
as n
ot p
rovi
ded
the
brea
kup
of p
rivat
e an
d go
vern
men
t co
nsum
er m
eter
s fo
r LT
CT
Met
ers
,3 P
hase
who
le
curr
ent m
eter
and
sin
gle
phas
e. T
he C
omm
issi
on d
irec
ts t
he B
oard
to p
rovi
de th
e de
taile
d br
eak
up
The
Com
mis
sion
als
o di
rect
s th
e B
oard
to
subm
it a
met
erin
g pl
an a
long
with
a r
epor
t on
def
ectiv
e m
eter
s an
d ac
tion
plan
for
m
eter
ing
all
unm
eter
ed c
onsu
mer
s an
d fo
r re
plac
emen
t of
all
the
defe
ctiv
e m
eter
s by
30th
Jun
e 20
12.T
he B
oard
sha
ll al
so
prov
ide
volta
ge w
ise
num
bers
of
feed
ers,
the
ir m
eter
ing
stat
us b
y 30
th J
une
2012
. The
reaf
ter,
the
Boa
rd is
re
quir
ed t
o up
date
th
e C
omm
issi
on o
n th
e pr
ogre
ss m
ade
on a
qua
rter
ly b
asis
.
Dire
ctiv
e N
o. 2
: R
epla
cem
ent o
f Non
-fu
nctio
nal /
Def
ectiv
e m
eter
s
The
Com
mis
sion
dire
cted
the
Boa
rd to
rep
ort t
he n
umbe
r of
non
-per
form
ing
/ def
ectiv
e m
eter
s ca
tego
ry-w
ise
in th
e sy
stem
as
on 3
0.11
.200
6 al
ong
with
an
actio
n pl
an t
o re
plac
e th
em a
nd th
e re
port
mus
t be
subm
itted
by
31st
Jan
uary
20
07 to
the
Com
mis
sion
.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
The
Boa
rd i
nfor
med
the
Com
mis
sion
tha
t it
has
initi
ated
a t
ime
boun
d pr
ogra
m f
or r
epla
cem
ent
of a
ll no
n-fu
nctio
nal
and
defe
ctiv
e m
eter
s. T
he t
arge
t fo
r 10
0% m
eter
ing
by M
arch
201
3 in
clud
es r
epla
cem
ent
of n
onfu
nctio
nal a
nd d
efec
tive
met
ers
also
w
ith
prov
isio
n of
m
eter
s in
the
pr
emis
es
of u
nmet
ered
con
sum
ers.
Th
e B
oard
do
es
not
have
se
para
te d
ata
of
nonp
erfo
rmin
g/ d
efec
tive
met
ers
and
unm
eter
ed c
onsu
mer
s. T
he c
umul
ativ
e fig
ure
of t
otal
non
perf
orm
ing/
defe
ctiv
e an
d
unm
eter
ed c
onsu
mer
upt
o S
ep’1
1 w
as p
rovi
ded
in r
espo
nse
to t
he D
irect
ive
1 of
FY
200
6-07
in
its p
etiti
on f
or F
Y 2
012-
13.
Acc
ordi
ng to
whi
ch th
e to
tal 9
,97,
685
num
bers
of
cons
umer
’s m
eter
are
def
ectiv
e/ s
top/
unm
eter
ed u
pto
Sep
tem
ber,
201
1.
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
T
he C
omm
issi
on d
irec
ts t
he B
oard
to
subm
it th
e qu
arte
rly s
tatu
s re
port
for
rep
lace
men
t of
the
def
ectiv
e an
d no
n-fu
nctio
nal
met
ers
with
in 1
0 da
ys o
f end
of e
ach
quar
ter.
The
firs
t suc
h re
port
sha
ll be
sub
mitt
ed t
o th
e C
omm
issi
on b
y 10
th J
uly
2012
.
BE
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012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
301
Dire
ctiv
e
Dire
ctiv
e N
o. 3
: Set
ting
up
of In
depe
nden
t Thi
rd P
arty
M
eter
Tes
ting
Arr
ange
men
t
The
Com
mis
sion
dire
cted
tha
t th
e B
oard
sho
uld
put
in
plac
e an
acc
redi
ted
inde
pend
ent
third
par
ty m
eter
tes
ting
arra
ngem
ent i
n al
l dis
tric
ts u
nder
its
licen
sed
are
a an
d al
so p
repa
re n
orm
s fo
r al
low
ing
cons
umer
s to
pu
rcha
se th
eir
own
met
ers
duly
tes
ted
and
cert
ified
by
such
thi
rd
part
y te
stin
g ag
ency
so
that
sco
pe f
or c
onsu
mer
com
plai
nts
is
min
imiz
ed a
nd c
ompl
aint
s th
at a
rise
are
settl
ed e
xped
itiou
sly
to t
he s
atis
fact
ion
of t
he c
onsu
mer
s w
itho
ut th
e ne
ed
for
any
reco
urse
to c
onsu
mer
foru
m.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
The
Boa
rd s
tate
d th
at it
has
set
-up
high
-tec
h te
stin
g la
bora
tory
at P
atna
.
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
The
Boa
rd h
as n
ot s
tate
d ab
out
the
putti
ng i
n pl
ace
an a
ccre
dite
d in
depe
nden
t th
ird
part
y m
eter
tes
ting
arra
ngem
ent
in a
ll di
stric
ts. T
he c
ompl
ianc
e is
vag
ue.
The
Pet
ition
er is
dire
cted
to
subm
it th
e pr
ogre
ss r
epor
t on
impl
emen
tatio
n on
est
ablis
hmen
t of
Hig
h-T
ech
test
ing
labo
rato
ry in
P
atna
, st
atus
of
com
mis
sion
ing
of f
our
(4)
nos.
of
com
pute
rize
d te
st b
ench
es o
btai
ned
from
PG
CIL
and
act
ion
plan
to
obta
in
sim
ilar
test
ben
ches
in a
ll ci
rcle
s fo
r te
stin
g of
met
ers
and
the
late
st s
tatu
s of
the
num
ber
of m
eter
s te
sted
so
far
by t
he B
oard
in
its
labo
rato
ry b
y 30
th J
une
2012
, as
dire
cted
in T
ariff
Ord
er fo
r F
Y 2
011-
12.
The
C
omm
issi
on
also
re
itera
tes
that
B
oard
sh
ould
pu
t in
pl
ace
an
accr
edite
d in
depe
nden
t th
ird
part
y m
eter
te
stin
g ar
rang
emen
t in
all
dist
ricts
und
er i
ts l
icen
sed
area
an
d al
so p
repa
re n
orm
s fo
r al
low
ing
cons
umer
s to
pur
chas
e th
eir
own
met
ers
duly
test
ed a
nd c
ertif
ied
by s
uch
third
par
ty te
stin
g ag
ency
.
Dire
ctiv
e N
o. 4
: Effi
cien
t m
eter
s re
adin
g bi
lling
and
co
llect
ion
Tim
ely
met
er r
eadi
ng,
billi
ng a
nd c
olle
ctio
n fo
r en
ergy
con
sum
ed b
y th
e co
nsum
ers
can
sign
ifica
ntly
im
prov
e th
e ca
sh fl
ow o
f the
Boa
rd. T
he p
rese
nt s
yste
m s
houl
d b
e re
view
ed w
ith a
vie
w to
str
eam
line
the
proc
ess
and
min
imiz
e th
e tim
e be
twee
n ac
tual
del
iver
y of
pow
er a
nd r
ecei
pt o
f rev
enue
. Sup
ervi
sory
offi
cers
mus
t cou
nter
ch
eck
the
met
er
read
ings
take
n by
the
met
er r
eade
rs. F
urth
er, t
he a
rea
of m
eter
rea
ders
sho
uld
be c
hang
ed e
very
yea
r.
The
Boa
rd s
houl
d in
trod
uce
billi
ng t
hrou
gh M
eter
Re
adin
g In
stru
men
t (M
RI)
for
all
HT
con
sum
ers
and
lar
ge n
on-
dom
estic
con
sum
ers.
Spo
t bill
ing
pref
erab
ly b
y pa
lm to
p co
mpu
ters
may
be
intr
oduc
ed in
the
urba
n ar
eas
.
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
302
Dire
ctiv
e
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
The
BS
EB
has
out
sour
ced
met
er r
eadi
ng,
com
pute
rized
bill
ing
and
bill
dist
ribut
ion
all
over
Bih
ar.
E-p
aym
ent
thro
ugh
debi
t ca
rd &
AT
M o
f C
anar
a ba
nk h
as b
een
alre
ady
star
ted.
Oth
er b
anks
like
SB
I, I
CIC
I ar
e lik
ely
to c
ome
in th
e co
llect
ion
netw
ork
of B
SE
B. P
aym
ent b
y ru
ral c
onsu
mer
s fa
cilit
ated
thro
ugh
Sah
aj V
asud
ha K
endr
as s
prea
d al
l ove
r B
ihar
. T
arg
et-
Jun’
12.
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
Dur
ing
the
publ
ic h
earin
g, it
has
com
e to
not
ice
of t
he C
omm
issi
on t
hat
met
er r
eadi
ng a
nd b
illin
g of
con
sum
ers
are
not
done
pr
oper
ly a
nd t
he e
lect
ricity
bill
s of
the
BS
EB
doe
s no
t co
ntai
n th
e re
quire
d de
tails
. T
he d
etai
ls o
f F
PP
CA
cha
rges
are
not
pr
ovid
ed i
n th
e bi
lls s
o th
e C
omm
issi
on d
irect
s th
e B
oard
to
take
the
im
med
iate
ste
ps f
or p
rope
r m
eter
ing
and
billi
ng o
f th
e co
nsum
ers
and
subm
it qu
arte
rly r
epor
t w
ith d
etai
ls o
f ac
tion
take
n fo
r pr
oper
met
erin
g an
d de
tails
of
billi
ng a
nd %
age
of
impr
ovem
ent i
n co
llect
ion.
Dire
ctiv
e N
o. 5
: Met
er
Rea
ding
of H
T s
ervi
ces
The
mon
thly
met
er r
eadi
ng o
f H
T s
ervi
ces
shal
l be
ent
rust
ed t
o a
com
mitt
ee o
f hi
gh le
vel o
ffice
rs o
f the
Boa
rd.
All
the
HT
ser
vice
s be
low
500
KV
A c
ontr
acte
d m
axim
um d
eman
d, m
eter
re
adin
g m
ay b
e do
ne b
y th
e co
ncer
ned
Ass
ista
nt E
ngin
eer
and
thos
e ab
ove
500K
VA
by
the
conc
erne
d E
xecu
tive
Eng
inee
r. F
urth
er c
erta
in p
erce
ntag
e of
m
eter
rea
ding
s in
eac
h ca
tego
ry o
f co
nsum
ers
shal
l be
don
e by
sen
ior
offic
ers
of t
he B
oard
upt
o th
e le
vel o
f C
hief
E
ngin
eer
to c
ontro
l pilf
erag
e of
ele
ctric
ity. B
SE
B
shal
l iss
ue s
uita
ble
inst
ruct
ions
in t
his
rega
rd im
med
iate
ly a
nd t
he
Boa
rd s
hall
also
rev
iew
the
perc
enta
ge o
f che
ck r
eadi
ngs
and
take
act
ion
in c
ase
of v
aria
tion
betw
een
norm
al m
eter
re
adin
g re
ad b
y m
eter
rea
der
and
the
chec
k m
eter
re
adin
g ta
ken
by th
e of
ficer
s of
the
Boa
rd.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
The
Com
mis
sion
has
dire
ctor
in
Tar
iff O
rder
tha
t th
e se
nior
offi
cers
sha
ll al
so p
erio
dica
lly v
isit
HT
ser
vice
s an
d ta
ke c
heck
re
adin
gs t
o en
sure
that
ther
e ar
e no
mal
prac
tices
in ta
king
met
er r
eadi
ngs
and
the
met
ers
are
not t
ampe
red
etc.
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
The
Boa
rd h
as n
ot r
epor
ted
rega
rdin
g pe
rcen
tage
of
met
er r
eadi
ng i
n ea
ch c
ateg
ory
of c
onsu
mer
s by
Sen
ior
Offi
cers
of
the
Boa
rd,
upto
the
lev
el o
f C
hief
-Eng
inee
r to
con
trol
pilf
erag
e of
ele
ctric
ity.
The
Com
mis
sion
dir
ects
the
Boa
rd t
o pr
ovid
e qu
arte
rly s
tatu
s of
per
cent
age
chec
k of
met
ers
read
ing
and
actio
n ta
ken
in c
ase
of v
aria
tion
betw
een
norm
al m
eter
rea
ding
re
ad b
y m
eter
-rea
der
and
the
chec
k m
eter
rea
ding
tak
en b
y th
e O
ffice
rs o
f th
e B
oard
, ea
ch A
rea
Boa
rd w
ise
to t
he
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
303
Dire
ctiv
e
Com
mis
sion
by
10th o
f the
nex
t m
onth
of q
uart
er e
ndin
g. F
irst
suc
h re
port
sha
ll co
me
to th
e C
omm
issi
on b
y 10
thJ ju
ly,
2012
..
Dire
ctiv
e N
o. 6
: R
epla
cem
ent o
f old
el
ectr
omag
netic
met
ers
with
sta
tic m
eter
s
A r
epor
t on
the
stat
us o
f m
eter
ing,
typ
e of
met
ers
prov
ided
in H
T a
nd o
ther
hig
h va
lue
LT in
stal
latio
ns
alon
g w
ith a
pr
ogra
mm
e fo
r re
plac
emen
t of s
uch
met
ers
with
sta
tic
met
ers
shal
l be
subm
itted
to th
e C
omm
issi
on b
y 31
st J
anua
ry
2007
.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
No
spec
ific
resp
onse
has
bee
n pr
ovid
ed b
y th
e B
oard
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
R
egar
ding
inst
alla
tion
of c
ent
perc
ent m
eter
ing
the
com
plia
nce
is n
oted
in d
irect
ive
No.
-1 s
o th
is is
not
dea
lt he
re s
epar
atel
y.
Dire
ctiv
e N
o. 7
: Red
uctio
n of
Tra
nsm
issi
on a
nd
Dis
trib
utio
n (T
&D
) los
s
A l
ong
term
act
ion
plan
for
red
uctio
n of
T&
D l
osse
s f
or b
oth
tech
nica
l an
d no
n-te
chni
cal
with
rel
evan
t l
oad
flow
st
udie
s be
cha
lked
out
and
sub
mitt
ed to
the
Com
mis
sio
n by
Mar
ch,
2007
. T
he B
oard
sho
uld
ensu
re r
educ
tion
of t
he
T&
D lo
sses
to 3
8% d
urin
g F
Y 2
007-
08 a
nd 3
4% d
urin
g F
Y 2
008-
09.
Com
plia
nce
stat
us o
f dire
ctiv
e
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
1-12
T
he C
omm
issi
on n
oted
the
act
ion
take
n an
d di
rect
ed th
e B
oard
to s
ubm
it th
e qu
arte
rly p
rogr
ess
repo
rt.
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
Ave
rage
AT&
C l
osse
s of
BS
EB
fro
m A
pril
2011
to
Aug
ust
2011
are
57.
41%
. T
he h
igh
AT
&C
los
ses
desp
ite c
orre
ctiv
e m
easu
res
take
n b
y B
SE
B a
re d
ue t
o m
assi
ve r
ural
ele
ctrif
icat
ion
and
rura
l loa
ds c
omin
g on
dis
trib
utio
n sy
stem
of
BS
EB
. Thi
s fa
ct h
as b
een
acce
pted
by
the
Com
mis
sion
in it
s T
ariff
Ord
er f
or F
Y 2
011-
12 d
ated
1st
Jun
e, 2
011.
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
304
Dire
ctiv
e
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
The
Com
mis
sion
has
dir
ecte
d th
e B
oard
to s
ubm
it a
long
ter
m a
ctio
n pl
an f
or r
educ
tion
of T
&D
loss
, bu
t th
e B
oard
inst
ead
of
subm
ittin
g th
e pl
an s
tate
d th
at A
T&
C lo
sses
are
57.
41%
due
to
mas
sive
rur
al e
lect
rific
atio
n an
d ru
ral l
oad.
The
Com
mis
sion
di
rect
s th
e B
oard
to
ensu
re t
hat
the
Met
erin
g pl
an is
syn
chro
nize
d w
ith t
he T
&D
loss
red
uctio
n pl
an. S
peci
fic lo
ng t
erm
map
fo
r re
duct
ion
of T
&D
loss
sha
ll be
sub
mitt
ed b
y th
e B
oard
by
30th J
une
2012
.
Dire
ctiv
e N
o. 8
: Ene
rgy
Aud
it an
d D
eman
d S
ide
Man
agem
ent
Ene
rgy
audi
t is
an
impo
rtan
t an
d es
sent
ial
tool
to
iden
tify
the
high
los
s (t
echn
ical
and
com
mer
cial
) a
reas
in
the
syst
em.
For
car
ryin
g ou
t the
ene
rgy
audi
t, m
eter
s a
re r
equi
red
to b
e pr
ovid
ed a
t al
l the
feed
ers
from
22
0KV
to 1
1KV
le
vel a
nd a
lso
dist
ribut
ion
tran
sfor
mer
s on
LT
sid
e.
Tho
ugh
it is
sta
ted
by t
he B
oard
tha
t m
eter
s ar
e pr
ovid
ed o
n a
num
ber
of f
eede
rs,
man
y of
the
m a
re d
efec
tive
or
non-
func
tiona
l. B
SE
B is
dire
cted
to r
epla
ce a
ll su
ch
met
ers
and
prov
ide
corr
ect
met
ers
on a
ll fe
eder
s fr
om 2
20K
V to
11
KV
leve
l as
wel
l as
LT s
ide
of th
e di
strib
utio
n t
rans
form
er o
n hi
ghes
t prio
rity.
The
ene
rgy
audi
t sh
ould
be
take
n up
firs
t in
all
the
tow
ns w
ith a
pop
ulat
ion
of f
ifty
thou
sand
and
abo
ve.
The
firs
t st
atus
rep
ort
on t
he a
ctio
n ta
ken
for
ener
gy a
udit
in a
ll th
e to
wns
sho
uld
be r
epor
ted
to t
he C
omm
issi
on b
y 31
st
Mar
ch, 2
007
to is
sue
furt
her d
irect
ives
in th
is r
egar
d, if
req
uire
d.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
i) P
FC
ha
s ap
poin
ted
M/s
P
rana
t E
ngin
eeri
ng
Ltd.
un
der
R-A
PD
RP
sc
hem
e to
co
nduc
t th
ird
part
y en
ergy
au
dit.
Exp
erie
nce
gath
ered
will
be
appl
ied
for
non-
RA
PD
RP
are
a.
ii)
BS
EB
is
inst
allin
g ri
ng-f
enci
ng m
eter
s, s
yste
m m
eter
s an
d co
nsum
er m
eter
s in
all
64 t
owns
cov
ered
und
er R
AP
DR
P
and
7 to
wns
cov
ered
und
er A
DB
pla
n. T
he s
tatu
s as
on
08t
h N
ovem
ber,
201
1 is
as
belo
w:
a.
Rin
g F
enci
ng (
33 k
V)
- 5
b.
R
ing
Fen
cing
(11
kV
) –
48
c.
Fee
der
Met
er (
33 k
V)
– 5
d.
Fee
der
Met
er (
11 k
V)
– 4
e.
Con
sum
er M
eter
(33
kV
) –
0 f.
Con
sum
er M
eter
(11
kV
) –
9
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
305
Dire
ctiv
e
g.
DT
Met
er –
10
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
The
Boa
rd h
as n
ot c
ompl
ied
with
the
dir
ectiv
e gi
ven
by t
he C
omm
issi
on.
Fee
der-
wis
e en
ergy
aud
it is
not
bei
ng c
arrie
d ov
er
by t
he B
oard
.
The
Com
mis
sion
dir
ects
the
Boa
rd t
o pr
ovid
e th
e vo
ltage
wis
e de
tails
of
num
bers
of
feed
ers,
fee
der
met
erin
g st
atus
and
pr
esen
t w
orki
ng c
ondi
tion
of fe
eder
met
ers.
Whe
re th
e fe
eder
met
ers
have
bee
n in
stal
led,
the
Boa
rd is
dire
cted
to p
rovi
de th
e en
ergy
aud
it re
port
by
30th J
une
2012
.The
Com
mis
sion
als
o di
rect
s th
e B
oard
to
inst
all
met
ers
on r
emai
ning
fee
ders
and
re
gula
rly u
pdat
e th
e C
omm
issi
on o
n qu
arte
rly
basi
s.
.
Dire
ctiv
e N
o. 9
: Pilf
erag
e of
Ele
ctric
ity
The
nee
d of
the
hour
is to
act
ivat
e th
e or
gani
zatio
n to
cur
b th
e pi
lfera
ge o
f pow
er w
ithin
the
prem
ise
s of
pro
visi
ons
of I
ndia
n E
lect
ricity
Act
200
3 an
d al
so t
he I
ndia
n P
enal
Cod
e. A
tas
k fo
rce
is t
o be
con
stitu
ted
in d
iffe
rent
zon
es t
o w
hich
the
ent
ire li
cens
ee a
rea
is t
o be
div
ided
to
carr
y ou
t m
assi
ve r
aid
to a
rres
t pi
lfera
ge.
In c
ase
of
dete
ctio
n of
su
ch t
heft/
pilfe
rage
, th
e co
ncer
ned
auth
ority
of
the
area
and
per
sonn
el a
ttach
ed t
o th
em,
who
hav
e du
tie
s to
su
perv
ise
the
wor
k, h
ave
to b
e m
ade
answ
erab
le f
or
puni
tive
actio
n. T
hose
fou
nd c
omm
ittin
g m
isch
ief
of p
ilfer
age
shou
ld b
e bo
oked
and
pen
al a
ctio
n sh
ould
vis
it th
em.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
008-
09
To
pre
vent
thef
t of
ener
gy a
nd t
o ca
tch
the
culp
rits
enga
ged
in th
eft o
f en
ergy
, B
oard
has
cre
ated
one
Ant
i Pow
er T
heft
(A
PT
) ce
ll at
Pat
na.
All
supp
ly c
ircle
s ha
ve a
lso
a c
ell f
or A
PT.
Reg
ular
rai
ds a
re b
eing
con
duct
ed in
diff
eren
t ar
eas.
Boa
rd a
t tim
es
has
diff
icul
ty
in g
ettin
g fo
rce
and
mag
istr
ate
for
cond
uctin
g ra
ids.
R
ecen
tly o
n B
oard
’s r
eque
st
DG
P,
Bih
ar
has
sent
in
stru
ctio
ns t
o fie
ld o
ffic
es t
o pr
ovid
e re
quire
d fo
rce
to B
oard
for
car
ryin
g ou
t ra
ids.
In
addi
tion,
Boa
rd is
ins
talli
ng m
eter
s of
S
ecur
e M
eter
s m
ake
whi
ch a
re t
ampe
r pr
oof
and
can
dete
ct p
ilfer
age
and
can
send
mes
sage
to
com
pute
rs a
nd m
obile
ph
one
s. R
ecen
tly B
oard
ha
s cr
eate
d a
Spe
cial
Ta
sk F
orce
(S
TF)
with
sel
ecte
d en
gine
ers
to o
rgan
ize
raid
s to
det
ect
thef
t an
d to
cur
b th
e po
wer
the
ft.
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
200
8-09
Act
ion
take
n by
the
Boa
rd in
org
aniz
ing
the
raid
s to
det
ect
pilfe
rage
etc
., of
ene
rgy
is n
oted
. T
his
has
to b
e in
tens
ified
fur
ther
an
d th
e w
ork
of T
askf
orce
is to
be
mon
itore
d at
hig
her
leve
l. W
here
ver,
if it
is o
bser
ved
that
mal
prac
tice
or p
ilfer
age
of e
nerg
y to
ok p
lace
due
to
negl
igen
ce o
f the
dep
artm
enta
l per
sonn
el, s
uita
ble
disc
iplin
ary
actio
n sh
all b
e in
itiat
ed a
gain
st s
uch
pers
on.
Ene
rgy
audi
t w
ill h
elp
in i
dent
ifyin
g hi
gh l
oss
area
s so
as
to c
once
ntra
te o
n su
ch a
reas
. T
he B
oard
sha
ll al
so c
heck
the
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
306
Dire
ctiv
e
ener
gy s
uppl
ied
to H
T a
nd h
igh
valu
e LT
con
sum
ers
on t
he b
asis
of l
oad
flow
fro
m th
e po
wer
sub
-sta
tions
.
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
010-
11
The
Boa
rd s
ubm
itted
the
stat
us r
epor
t of r
aids
car
ried
out
duri
ng F
Y 2
008-
09 a
nd t
he p
ositi
on fr
om A
pril
2009
to N
ov’0
9.
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
0-11
The
num
ber
of c
onsu
mer
pre
mis
es r
aide
d du
ring
the
per
iod
Apr
il-N
ovem
ber
2009
is
not
adeq
uate
for
the
ent
ire s
tate
. T
he
raid
s ha
ve t
o be
inte
nsifi
ed c
once
ntra
ting
mor
e in
all
the
tow
ns,
HT
and
hig
h va
lue
LT c
onsu
mer
s si
nce
bulk
of e
nerg
y is
sol
d in
tow
ns a
nd t
o H
T a
nd h
igh
valu
e co
nsum
ers.
The
Boa
rd is
dir
ecte
d to
sub
mit
quar
terly
rep
orts
on
the
raid
s co
nduc
ted
and
ener
gy b
illed
and
am
ount
rea
lized
as
a re
sult
of r
aids
.
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
011-
12
The
Boa
rd s
tate
d th
at th
e A
nti ‐t
heft
rai
ds a
re b
eing
car
ried
out b
y di
visi
ons,
circ
les
and
head
quar
ter
STF
team
.
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
1-12
T
he c
ompl
ianc
e re
port
is v
ague
. S
peci
fic n
umbe
r of
crim
inal
cas
es f
iled
afte
r th
e di
rect
ive,
det
ails
of
offe
nder
s, a
nd a
mou
nt
asse
ssed
and
rea
lised
und
er s
ectio
n 12
6 of
the
Act
may
be
subm
itted
by
the
Boa
rd a
long
with
the
next
tar
iff p
etiti
on.
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
i) S
peci
al c
ourt
s un
der
sect
ion
135
of E
lect
ricity
Act
, 200
3 ha
s be
en c
onst
itute
d at
Pat
na, G
aya
and
Muz
affa
rpur
; ii)
P
ropo
sal
of f
or s
ettin
g up
a s
peci
al p
olic
e st
atio
n fo
r P
ES
U a
rea
to c
urb
thef
t of
ele
ctric
ity h
as b
een
sent
to
the
Gov
ernm
ent
of B
ihar
; iii
) S
peci
al t
ask
forc
e of
BS
EB
is c
ondu
ctin
g su
per
chec
ks a
ll ov
er B
ihar
aga
inst
thef
t of
pow
er;
iv)
Cri
min
al p
rose
cutio
ns a
nd d
epar
tmen
tal
proc
eedi
ngs
in a
dditi
on t
o ot
her
disc
iplin
ary
mea
sure
s in
itiat
ed a
gain
st
offic
ers
and
staf
f of B
SE
B fo
und
invo
lved
in u
naut
horiz
ed u
se o
f po
wer
by
cons
umer
s;
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
The
Com
mis
sion
rei
tera
tes
its d
irect
ive
and
dire
cts
the
Boa
rd t
o pr
ovid
e re
port
by
30th J
une,
201
2 S
peci
fic n
umbe
r of
cri
min
al
case
s fil
ed a
fter
the
issu
e of
dire
ctiv
e, d
etai
ls o
f of
fend
ers,
and
am
ount
ass
esse
d se
para
tely
for
eac
h fin
anci
al y
ear
from
FY
20
06-0
7 to
FY
201
0-11
.
The
Boa
rd i
s al
so d
irect
ed t
o su
bmit
circ
le-w
ise
deta
ils o
f ra
ids
cond
ucte
d, F
IRs
lodg
ed,
amou
nt a
sses
sed,
am
ount
rea
lized
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
307
Dire
ctiv
e
for
FY
201
1-12
. T
here
afte
r th
e B
oard
sha
ll su
bmit
circ
le w
ise
repo
rt o
n ra
id c
ondu
cted
and
FIR
lod
ged
indi
catin
g th
e af
ores
aid
on q
uart
erly
bas
is.
Dire
ctiv
e N
o. 1
0:
Enu
mer
atio
n of
A
gric
ultu
re P
ump-
sets
&
Oth
er S
ervi
ce C
onne
ctio
ns
It is
und
erst
ood
that
the
re a
re a
num
ber
of u
naut
horiz
ed a
gric
ultu
ral
pum
pset
s an
d ot
her
serv
ice
conn
ect
ions
co
nnec
ted
to t
he s
yste
m p
artic
ular
ly i
n th
e ru
ral
are
as.
The
Boa
rd s
hall
get
all
agric
ultu
ral
pum
pset
s a
nd o
ther
se
rvic
e co
nnec
tions
enu
mer
ated
to
iden
tify
the
unau
thor
ized
con
nect
ions
and
get
the
m r
egul
ariz
ed b
y pr
ovid
ing
met
ers.
A
re
port
on
th
e ac
tion
take
n to
ge
t ag
ricul
tura
l an
d ot
her
conn
ectio
ns
enum
erat
ed
to
iden
tify
the
unau
thor
ized
con
nect
ion
and
to r
egul
ariz
e th
em s
hal
l be
plac
ed b
efor
e th
e C
omm
issi
on b
y 30
th J
une,
200
7.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
The
Boa
rd s
tate
d th
at it
has
dis
cuss
ion
with
BE
RC
as
dire
cted
. B
SE
B h
as c
ondu
cted
Pilo
t st
udy
of c
olle
ctio
n of
dat
a in
som
e vi
llage
s w
here
100
% m
eter
ing
of a
gric
ultu
re s
ervi
ces
has
been
don
e. T
he d
ata
of p
ilot s
tudy
is s
ubm
itted
.
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
As
per
the
repo
rt s
ubm
itted
by
the
Boa
rd n
o sp
ecifi
c an
alys
is a
nd a
sses
smen
t ha
s be
en d
one.
The
Com
mis
sion
is
of t
he v
iew
tha
t th
e B
oard
sho
uld
have
pro
vide
d an
act
ion
plan
to
take
on
the
task
on
stat
e le
vel.
How
ever
, th
e B
oard
has
fai
led
to d
o so
. It
appe
ars
that
the
Boa
rd h
as n
ot t
aken
any
tan
gibl
e st
eps
in t
his
rega
rds.
Fur
ther
, th
e C
omm
issi
on d
irec
ts t
he B
oard
to
subm
it th
e ac
tion
plan
to
iden
tify
such
una
utho
rize
d co
nnec
tion
and
to r
egul
ariz
e th
em
and
plac
ed b
efor
e th
e C
omm
issi
on b
y 30
th J
une,
201
2.
Dire
ctiv
e N
o. 1
1:
Ass
essm
ent o
f A
gric
ultu
ral C
onsu
mpt
ion
Tho
ugh
ener
gy c
onsu
med
by
agric
ultu
re s
ecto
r co
nsti
tute
s a
sign
ifica
nt p
art
of t
otal
ene
rgy
cons
umpt
ion
in t
he
Sta
te,
all
the
irrig
atio
n pu
mps
ets
in t
he S
tate
are
unm
eter
ed a
nd b
illed
at
flat
rate
bas
is.
The
BS
EB
fo
r re
alis
tic
asse
ssm
ent
of e
nerg
y co
nsum
ptio
n by
agr
icul
ture
sec
tor,
sha
ll ta
ke s
teps
to
corr
ectly
ass
ess
cons
umpt
ion
/ lo
ad
fact
or o
f ag
ricul
ture
con
sum
ers
base
d on
con
nect
ed
load
, ar
ea,
regi
on,
crop
ping
pat
tern
, nu
mbe
r of
cro
ps,
wat
er
sour
ces,
etc
. by
arr
angi
ng p
rope
r m
eter
ing
for
all
irrig
atio
n pu
mps
ets
in t
he S
tate
whe
reve
r it
is n
ot d
one.
Sin
ce i
t m
ay t
ake
time,
mea
nwhi
le m
eter
s sh
all b
e in
stal
led
on L
T s
ide
of D
istr
ibut
ion
Tra
nsfo
rmer
exc
lusi
vely
co
nnec
ted
to
agric
ultu
re c
onsu
mer
s/ p
umps
ets.
Thi
s w
ould
giv
e fa
irly
reas
onab
le a
sses
smen
t abo
ut c
onsu
mpt
ion
of e
lect
ricity
by
pum
pset
s. T
he B
SE
B s
hall
com
e ou
t w
ith a
n ac
tion
plan
for
thi
s jo
b by
31s
t M
arch
, 20
07 t
o be
pla
ced
befo
re t
he
Com
mis
sion
and
pur
suan
t th
eret
o th
e ac
tion
take
n on
the
pla
n sh
all a
lso
be m
ade
avai
labl
e to
the
Com
mi
ssio
n by
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
308
Dire
ctiv
e
31st
Jul
y, 2
007.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
No
Res
pons
e ha
s be
en p
rovi
ded
by t
he B
oard
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
As
per
the
repo
rt s
ubm
itted
by
the
Boa
rd n
o p
rope
r a
naly
sis
and
asse
ssm
ent
of A
gric
ultu
re c
onsu
mpt
ion
has
been
don
e as
di
rect
ed i
n th
e T
ariff
Ord
er f
or F
Y 2
010-
11.
It ap
pear
s th
at t
he B
oard
has
not
tak
en a
ny t
angi
ble
step
s fo
r as
sess
ing
the
cons
umpt
ion
patte
rn f
or a
gric
ultu
re c
onsu
mer
s S
o th
e di
rect
ive
is a
gain
rei
tera
ted
and
the
Boa
rd i
s di
rect
ed t
o su
bmit
the
actio
n pl
an fo
r ca
rryi
ng o
ut s
tudy
in th
is r
egar
d in
diff
eren
t par
ts o
f the
sta
te b
y 30
th J
une
2012
.
Dire
ctiv
e N
o. 1
2:
Reg
ulat
ion
of P
ower
S
uppl
y to
Rur
al A
reas
The
Boa
rd m
ay s
tudy
the
pra
ctic
es b
eing
follo
wed
in o
ther
Sta
tes
and
draw
out
a s
chem
e to
reg
ulat
e po
wer
sup
ply
to
rura
l ar
eas,
pa
rtic
ular
ly,
to
agric
ultu
ral
pum
p se
ts,
and
subm
it su
ch
a sc
hem
e to
th
e C
omm
issi
on
for
cons
ider
atio
n an
d ap
prov
al b
y 31
st M
arch
200
7.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
No
Spe
cific
Res
pons
e ha
s be
en p
rovi
ded
by th
e B
oard
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
The
Com
mis
sion
dir
ects
the
Boa
rd t
o su
bmit
spec
ific
sche
mes
bei
ng f
ollo
wed
in
the
othe
r st
ates
and
in
the
Bih
ar S
tate
E
lect
rici
ty B
oard
and
fut
ure
actio
n pl
an f
or F
Y 2
012-
13 t
o re
gula
te t
he P
ower
sup
ply
to r
ural
are
a pa
rtic
ular
ly t
o A
gric
ultu
re
pum
p se
ts b
y 30
th J
une
2012
.
Dire
ctiv
e N
o. 1
3: Q
ualit
y of
P
ower
Sup
ply
and
Ser
vice
It is
und
erst
ood
that
a n
umbe
r of
LT
line
s in
the
rur
al a
reas
hav
e no
con
duct
ors
and
the
villa
gers
/ c
onsu
mer
s ar
e w
ithou
t sup
ply.
The
Boa
rd m
ay d
raw
out a
sch
eme
to r
esto
re a
ll su
ch li
nes
and
to s
tren
gthe
n th
e di
strib
utio
n sy
stem
w
here
ver
requ
ired,
as
it is
nec
essa
ry t
o pr
ovid
e po
wer
sup
ply
to a
ll co
nsum
ers
at a
rea
sona
ble
volta
ge a
nd w
ith
min
imum
inte
rrup
tions
. Th
e fu
nds
avai
labl
e fr
om R
GG
VY
and
oth
er R
ural
ele
ctrif
icat
ion
sche
mes
sha
ll be
ava
iled
to
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
309
Dire
ctiv
e
to C
onsu
mer
im
prov
e th
e sy
stem
. The
Boa
rd s
hall
sub
mit
its s
chem
e to
str
engt
hen
the
tran
smis
sion
& d
istr
ibut
ion
syst
ems
to th
e C
omm
issi
on b
y 31
st M
arch
200
7.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
i) O
n ac
coun
t of
hug
e in
vest
men
t ne
eded
for
res
tora
tion
of l
ines
whi
ch h
as n
o co
nduc
tors
, it
is n
ot p
ossi
ble
for
BS
EB
alo
ne to
rev
ive
the
dead
dis
trib
utio
n sy
stem
on
its o
wn.
ii)
H
owev
er,
RG
GV
Y p
rogr
am,
elec
trifi
catio
n fo
r su
ch s
yste
ms
has
been
pro
pose
d an
d is
like
ly to
be
com
plet
ed
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
The
Com
mis
sion
is n
ot s
atis
fied
with
the
res
pons
e of
the
Boa
rd a
nd o
nce
agai
n di
rect
s th
e B
oard
to
subm
it a
com
preh
ensi
ve
plan
to
impr
ove
the
qual
ity o
f su
pply
and
ser
vice
to
cons
umer
s an
d m
eet
the
Sta
ndar
ds o
f pe
rfor
man
ce a
s st
ipul
ated
in t
he
Reg
ulat
ion.
The
Boa
rd s
hall
also
pro
vide
qua
rter
ly r
epor
t on
the
exi
stin
g st
atus
whe
re t
he B
oard
has
mad
e e
ffort
to
impr
ove
the
Pow
er s
uppl
y b
y in
stal
ling
addi
tiona
l tra
nsfo
rmer
s an
d lin
e ca
paci
ty.
Dire
ctiv
e N
o. 1
4:
Man
agem
ent I
nfor
mat
ion
Sys
tem
The
Boa
rd is
dire
cted
to
take
urg
ent
step
s to
bui
ld a
cre
dibl
e an
d ac
cura
te d
atab
ase
and
man
agem
ent
info
rmat
ion
syst
em w
ith u
nbun
dled
cos
ts a
nd e
xpen
ditu
re o
f th
e th
ree
busi
ness
es o
f th
e B
oard
viz
. G
ener
atio
n, T
ran
smis
sion
an
d D
istr
ibut
ion
to m
ake
info
rmat
ion
avai
labl
e on
ope
ratio
nal
and
finan
cial
iss
ues
and
get
such
dat
a u
pdat
ed o
n m
onth
ly b
asis
. A
dvan
tage
of
IT m
ust
be t
aken
to
ins
titut
e th
e M
IS.
Act
ion
mus
t be
tak
en u
rgen
tly o
n th
is a
nd t
he
actio
n ta
ken
shal
l be
repo
rted
to th
e C
omm
issi
on b
y 3
1st
Mar
ch, 2
007.
Car
e m
ust b
e ta
ken
to s
ee th
at t
he n
ext t
ariff
pe
titio
n is
sup
port
ed b
y an
acc
urat
e an
d cr
edib
le d
atab
ase.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
No
spec
ific
resp
onse
has
bee
n pr
ovid
ed b
y th
e B
oard
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
B
SE
B in
the
tar
iff p
etiti
on fo
r F
Y 2
011-
12 h
as s
tate
d th
at B
SE
B h
as is
sued
lette
r of
inte
nt (
LOI)
to M
/s S
PA
NC
O L
td. G
urga
on
for
appo
intm
ent
as I
T im
plem
entin
g A
genc
y on
29.
11.2
010.
As
the
IT im
plem
enta
tion
agen
cy w
as a
ppoi
nted
on
29th N
ov’1
0,
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
310
Dire
ctiv
e
the
Boa
rd is
dir
ecte
d to
sub
mit
the
late
st p
rogr
ess
repo
rt o
n im
plem
enta
tion
of M
IS to
the
Com
mis
sion
by
30th J
une
2012
.
Dire
ctiv
e N
o. 1
5: A
nnua
l A
ccou
nts
of th
e B
SE
B
The
Boa
rd i
s di
rect
ed t
o ac
cord
hig
hest
prio
rity
and
ensu
re t
hat
the
acco
unts
of
thes
e ye
ars
are
duly
au
dite
d by
A
ccou
ntan
t G
ener
al,
Bih
ar b
y M
arch
, 20
07.
BS
EB
sho
uld
file
the
AR
R a
nd ta
riff
petit
ion
for
the
next
ye
ar s
uppo
rted
w
ith a
udite
d ac
coun
ts.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
No
Spe
cific
res
pons
e ha
s be
en p
rovi
ded
by t
he B
oard
. H
owev
er t
he r
ecor
d sh
ows
that
the
ann
ual a
ccou
nt o
f th
e B
oard
upt
o F
Y 2
010-
11 h
ave
been
aud
ited.
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
T
he C
omm
issi
on h
as n
oted
the
com
plia
nce.
The
Boa
rd s
hall
file
tarif
f pe
titio
n w
ith a
udite
d an
nual
acc
ount
s as
req
uire
d in
the
B
ER
C (
Ter
ms
and
cond
ition
s fo
r de
term
inat
ion
of T
ariff
) re
gula
tions
, 200
7.
Dire
ctiv
e N
o. 1
6: A
rrea
rs
The
Boa
rd s
houl
d pr
epar
e ar
ea-w
ise
list
of c
onsu
mer
s ha
ving
hug
e ar
rear
s an
d fu
rnis
h to
the
Com
mis
sion
in
the
form
at g
iven
bel
ow.
The
outs
tand
ing
from
the
Sta
te
Gov
ernm
ent
Dep
artm
ents
, G
over
nmen
t U
nder
taki
ngs,
lo
cal
bodi
es a
nd p
rivat
e pa
rtie
s sh
all
also
be
furn
ishe
d se
para
tely
by
31st
Jan
uary
, 20
07 i
n th
e fo
llow
ing
for
mat
giv
en
belo
w:
Act
ion
take
n sh
all b
e re
port
ed to
the
Com
mis
sion
by
31s
t M
arch
, 200
7.
Sl.
Nam
e of
Con
sum
er/
orga
niza
tion
Mon
th &
Yea
r th
e A
mou
nt d
ue
Ene
rgy
char
ges
Bill
ed
Del
ayed
Pay
men
t Cha
rges
T
otal
Com
plia
nce
stat
us o
f dire
ctiv
e
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
311
Dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
For
FY
201
0-11
, B
SE
B h
as
reco
vere
d ar
rear
s of
Rs.
583
.60
Cr.
fro
m G
over
nmen
t d
epar
tmen
ts a
nd R
s. 1
185.
33 C
r. f
rom
P
riva
te c
onsu
mer
s.
Nam
e of
Con
sum
er/
orga
niza
tion
Out
stan
ding
due
s as
on
31.0
3.20
11 (
Rs.
Cr.
) C
olle
ctio
n ag
ains
t due
s (R
s.C
r.)
Gov
t. 31
46.0
4
583.
60
Priv
ate
4981
.52
11
85.3
3
Tot
al
8127
.56
1768
.93
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
T
he d
etai
ls a
s de
sire
d in
the
dir
ectiv
es h
ave
not
been
com
plie
d. S
o th
e C
omm
issi
on a
gain
rei
tera
tes
its d
irec
tive
give
n in
TO
fo
r F
Y 2
006-
07 a
nd d
irec
ts th
e B
oard
to s
ubm
it th
e re
port
to
the
Com
mis
sion
by
30th J
une
2012
.
Dire
ctiv
e N
o. 1
7:
Col
lect
ion
of A
rrea
rs
The
Boa
rd s
houl
d su
bmit
the
deta
ils o
f rec
over
y of
ar
rear
s un
der
the
first
OT
S a
nnou
nced
in A
pril
2006
and
als
o th
e re
cove
ry u
nder
the
seco
nd O
TS
sch
eme
in f
orce
fro
m
Oct
ober
200
6 on
war
ds in
for
mat
giv
en b
elow
. T
he f
irst
rep
ort
shal
l be
subm
itted
by
31st
Jan
uary
200
7 an
d th
e se
con
d re
port
afte
r th
e sc
hem
e is
ove
r in
Mar
ch 2
007.
Sl.
Nam
e of
Con
sum
er/
orga
niza
tion
Am
ount
of
arre
ars
due
Am
ount
of
DP
S d
ue
Arr
ears
C
olle
cted
D
PS
W
aive
d T
otal
Col
lect
ion
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
For
FY
201
0-11
, B
SE
B h
as
reco
vere
d ar
rear
s of
Rs.
583
.60
Cr.
fro
m G
over
nmen
t d
epar
tmen
ts a
nd R
s. 1
185.
33 C
r. f
rom
P
riva
te c
onsu
mer
s.
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
312
Dire
ctiv
e
Con
sum
ers
Out
stan
ding
due
s as
on
31.0
3.20
11
(Rs.
Cr.
) C
olle
ctio
n ag
ains
t due
s (R
s. C
r.)
Gov
ernm
ent
3146
.04
58
3.60
Pri
vate
49
81.5
2
1185
.33
Tota
l 81
27.5
6 17
68.9
3
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
The
Boa
rd b
een
dire
cted
to
furn
ish
the
deta
ils o
f the
firs
t an
d se
cond
OT
S s
chem
es b
ut B
SE
B h
as n
ot s
ubm
itted
suc
h de
tails
The
Com
mis
sion
is d
ispl
ease
d w
ith t
he e
ffort
s of
the
Pet
ition
er f
or c
olle
ctio
n of
arr
ear
incl
udin
g D
PS
. T
he C
omm
issi
on a
gain
di
rect
s th
e P
etiti
oner
to
take
app
ropr
iate
act
ion
on c
onne
cted
/ di
scon
nect
ed c
onsu
mer
s no
t pa
ying
DP
S a
nd a
lso
prep
are
a st
rate
gy f
or c
olle
ctio
n of
arr
ear
and
DP
S f
rom
con
nect
ed a
s w
ell
as d
isco
nnec
ted
cons
umer
s. T
he B
SE
B s
hall
subm
it th
e ac
tion
take
n re
port
by
30th J
une
2012
.
Dire
ctiv
e N
o. 1
8: A
sset
R
egis
ter
The
B
oard
sh
all
mai
ntai
n se
para
te
asse
t re
gist
ers
for
th
e 3
busi
ness
es
viz.
G
ener
atio
n,
Tra
nsm
issi
on
and
D
istr
ibut
ion.
If
such
reg
iste
rs a
re a
lread
y av
aila
ble
, th
e sa
me
may
be
subm
itted
to
the
Com
mis
sion
for
per
usal
. In
ca
se s
uch
regi
ster
s ar
e no
t ava
ilabl
e th
e sa
me
may
be
got
pre
pare
d by
Jul
y, 2
007
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
BS
EB
has
initi
ated
the
proc
ess
on t
he f
ollo
win
g as
pect
s
i) F
or
new
as
set
crea
ted
unde
r sc
hem
es
like
RA
PD
RP
, R
SV
Y,
RG
GV
Y
ass
et
regi
ster
ar
e be
ing
crea
ted.
M
aint
enan
ce o
f ass
et r
egis
ter
for
all a
sset
s re
quir
es I
T en
able
d m
echa
nism
hug
e fin
anci
al in
vest
men
t; ii)
S
hri S
hung
lu C
omm
ittee
had
not
ed t
he p
oor
finan
cial
hea
lth o
f ut
ilitie
s;
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
The
dir
ectiv
e w
as g
iven
in T
ariff
Ord
er f
or F
Y 2
006-
07 s
ince
the
n th
e B
oard
has
not
bee
n ab
le to
pre
pare
the
ass
ets
regi
ster
. T
his
show
s th
e la
ck o
f int
eres
t of
the
Boa
rd in
pre
para
tion
of a
sset
s re
gist
er.
The
Com
mis
sion
dire
cts
the
Boa
rd t
o co
nduc
t st
udy
for
crea
tion
of f
unct
ion-
wis
e F
ixed
Ass
et R
egis
ters
(F
AR
). T
he F
ixed
A
sset
s re
gist
er s
houl
d be
pre
pare
d w
ithin
the
tim
e bo
und
man
ner
and
the
Pet
ition
er s
houl
d su
bmit
the
actio
n ta
ken
repo
rt
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
313
Dire
ctiv
e
and
late
st s
tatu
s of
the
pre
para
tion
of a
sset
reg
iste
r to
the
Com
mis
sion
in
this
reg
ard
by 3
0th J
une
20
12 f
ollo
wed
by
subm
issi
on o
f qua
rter
ly p
rogr
ess
mad
e fo
r pr
epar
atio
n of
ass
et r
egis
ter.
Dire
ctiv
e N
o. 1
9: T
ime
of
Day
(T
oD)
Tar
iff
Som
e co
nsum
er o
rgan
izat
ions
hav
e su
gges
ted
to i
ntro
duce
TO
D t
ariff
whi
ch w
ill h
elp
flatte
ning
of
load
cu
rve
and
redu
ce p
eak
dem
and.
The
Nat
iona
l Ele
ctric
ity P
olic
y a
lso
stip
ulat
es f
or in
trod
uctio
n of
TO
D t
ariff
. B
SE
B s
hall
com
e up
with
a p
lan
for
intro
duct
ion
of T
OD
tar
iff a
nd m
eter
ing
for
HT
con
sum
ers
in t
he f
irst
phas
e fo
llow
ed
by L
T
indu
strie
s an
d N
on –
Dom
estic
con
sum
ers.
Suc
h pl
an s
hall
be s
ubm
itted
to
the
Com
mis
sion
alo
ng w
ith n
ext
tar
iff
petit
ion.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
i) 10
0% c
ompl
ianc
e ac
hiev
ed.
ii)
Und
er R
-AP
DR
P s
chem
e, T
oD c
ompl
iant
met
ers
are
bein
g in
stal
led.
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
The
Com
mis
sion
has
tak
en n
ote
of th
e st
eps
take
n by
the
Pet
ition
er a
nd d
irect
s th
e B
oard
to s
ubm
it th
e la
test
sta
tus
repo
rt to
th
e C
omm
issi
on b
y 30
th J
une
2012
, th
e lis
t of
con
sum
ers
(200
kV
A a
nd A
bove
) in
who
se p
rem
ises
the
ToD
met
ers
have
bee
n in
stal
led
and
billi
ng is
don
e on
ToD
Tar
iff.
Dire
ctiv
e N
o. 2
0: R
ecov
ery
of F
uel P
rice
Adj
ustm
ent
from
Con
sum
ers
Pay
ing
Mon
thly
Min
imum
Cha
rges
An
issu
e ha
s be
en r
aise
d by
a n
umbe
r of
con
sum
ers/
con
sum
er o
rgan
izat
ions
tha
t th
e B
oard
is
reco
verin
g th
e fu
el
adju
stm
ent c
harg
es o
n m
onth
ly m
inim
um c
onsu
mpt
ion
and
not
on
the
actu
al e
nerg
y co
nsum
ptio
n by
the
cons
umer
. T
hus
the
cons
umer
has
to p
ay fu
el a
djus
tmen
t cha
rge
s fo
r th
e en
ergy
act
ually
not
con
sum
ed. T
he C
omm
iss
ion
is o
f th
e op
inio
n th
at th
e fu
el a
djus
tmen
t cha
rges
sha
ll be
cha
rged
onl
y on
ene
rgy
actu
ally
con
sum
ed a
nd n
ot o
n m
onth
ly
min
imum
con
sum
ptio
n.
The
BS
EB
sha
ll su
bmit
a fa
ctua
l rep
ort i
n th
e m
atte
r to
the
Com
mis
sion
by
31st
Jan
uary
200
7.
Com
plia
nce
stat
us o
f dire
ctiv
e
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
314
Dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
No
Spe
cific
res
pons
e ha
s be
en p
rovi
ded
by th
e B
oard
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
Dur
ing
the
publ
ic h
eari
ng a
t va
rious
pla
ces
it ha
s co
me
to t
he n
otic
e of
the
Com
mis
sion
tha
t th
e de
tails
of
units
, ra
tes
and
peri
od fo
r w
hich
FP
PC
A a
re c
harg
es a
re n
ot s
how
n in
the
Con
sum
er’s
bill
s. M
oreo
ver
the
field
offi
cial
s ar
e no
t abl
e to
exp
lain
th
is t
o th
e co
nsum
ers.
The
refo
re t
he B
oard
is
dire
cted
to
prov
ide
full
deta
ils o
f F
PP
CA
cha
rges
in
the
bills
and
sub
mit
com
plia
nce
with
spe
cim
en c
opy
of b
ills
of a
tleas
t te
n (1
0) s
uppl
y ci
rcle
s re
latin
g to
LT
con
sum
ers
to t
he C
omm
issi
on b
y 30
th
May
201
2.
Dire
ctiv
e N
o. 2
1: F
uel &
P
ower
Pur
chas
e P
rice
Adj
ustm
ent
A f
orm
ula
is a
ppro
ved
by t
he C
omm
issi
on f
or a
djus
tmen
t of
any
inc
reas
e /
decr
ease
in
fuel
pric
es a
nd p
ower
pu
rcha
se p
rice.
Any
adj
ustm
ents
in
the
Fue
l /
Pow
er p
urch
ase
cost
s, t
he a
dditi
onal
cos
t to
be
reco
vere
d fr
om
cons
umer
s or
to
be r
efun
ded
shal
l be
got
appr
oved
by
the
Com
mis
sion
on
furn
ishi
ng a
ll re
leva
nt d
etai
ls a
nd d
ata
requ
ired
to e
nabl
e pr
oper
cal
cula
tion.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
No
Res
pons
e ha
s be
en p
rovi
ded
by t
he B
oard
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
T
he c
ompl
ianc
e ha
s be
en n
oted
by
the
Com
mis
sion
and
it is
dir
ects
the
Boa
rd t
o ge
t ap
prov
al o
f an
y ad
just
men
t/ r
ecov
ery
of
FP
PC
A f
rom
the
Com
mis
sion
.
Dire
ctiv
e N
o. 2
2:
Adj
ustm
ent o
f Pay
men
t of
Cur
rent
Bill
s ag
ains
t D
elay
ed P
aym
ent
Sur
char
ge (
DP
S)
The
issu
e sh
all b
e ex
amin
ed in
det
ail a
nd a
rep
ort
on t
he p
roce
dure
fol
low
ed s
hall
be s
ubm
itted
to
the
Com
mis
sion
by
31s
tJan
uary
200
7 in
ord
er to
ena
ble
the
Com
mis
sion
to m
ake
a st
udy
of th
e is
sue
and
issu
e ne
cess
ary
dire
ctio
ns
in th
e m
atte
r.
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
315
Dire
ctiv
e
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
No
Res
pons
e ha
s be
en p
rovi
ded
by t
he B
oard
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
The
Boa
rd i
s di
rect
ed t
o fu
rnis
h th
e up
date
d st
atus
of
the
proc
edur
e fo
llow
ed f
or a
djus
tmen
t of
pay
men
t of
cur
rent
bill
s ag
ains
t D
PS
by
30th J
uly
2012
.The
Boa
rd s
hall
also
sub
mit
cate
gory
wis
e th
e de
tails
of
DP
S c
harg
ed a
nd r
ecov
ered
fro
m
each
cir
cle
of B
SE
B b
y 30
th J
uly
2012
.
Dire
ctiv
e N
o. 2
3:
Org
aniz
ing
Ope
ratio
nal
Circ
les
as C
ost C
ente
rs
The
Boa
rd w
as d
irect
ed t
o dr
aw o
ut a
act
ion
plan
to
org
aniz
e th
e co
st c
entr
es u
pto
divi
sion
lev
el t
o m
ake
them
ac
coun
tabl
e fo
r th
eir p
erfo
rman
ce o
n pr
ofit
and
los
s ac
coun
t and
sub
mit
repo
rts
to C
omm
issi
on b
y 31
st
Mar
ch 2
007.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
The
Boa
rd s
tate
d th
at th
e C
ircl
e-w
ise
P&
L ac
coun
t fo
r F
Y 2
009-
10 is
pro
vide
d in
Ann
exu
re –
III
alon
g w
ith t
he t
ariff
pet
ition
of
FY
201
2-13
.
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
The
Com
mis
sion
dire
cts
to s
ubm
it th
e ci
rcle
-wis
e de
taile
d pl
an o
n cr
eatio
n of
pro
fit c
entr
es o
n pi
lot
prog
ram
bas
is f
or
appr
oval
of
the
Com
mis
sion
with
in th
e pe
riod
of 3
mon
ths.
The
Com
mis
sion
als
o di
rect
s th
e P
etiti
oner
to s
ubm
it a
time
boun
d A
ctio
n P
lan
indi
catin
g th
eir
prop
osal
s fo
r re
duct
ion
in A
T&
C L
osse
s, E
nerg
y A
udit,
Rea
lisat
ion
of A
rrea
rs,
Impr
ovem
ent
in
Col
lect
ion
Sys
tem
, In
stal
latio
n of
Aer
ial
Bun
ch C
able
Con
duct
ors
in H
igh
Loss
pro
ne a
reas
and
rep
lace
men
t of
Ele
ctro
-m
echa
nica
l Met
ers
with
Sta
tic M
eter
s fo
r su
ch p
ilot a
rea.
Dire
ctiv
e N
o. 2
4:
Per
form
ance
of B
SE
B’s
ow
n ge
nera
ting
stat
ions
an
d th
eir p
aram
eter
s
The
Boa
rd s
hall
subm
it a
deta
iled
repo
rt o
n th
e cu
rre
nt s
tatu
s of
R&
M a
nd r
esto
ratio
n of
gen
erat
ing
units
at b
oth
the
pow
er s
tatio
ns a
long
with
rep
ort
on a
ctio
n ta
ken
abou
t pe
rform
ance
par
amet
ers
of i
ts g
ener
atin
g st
atio
ns b
y 31
st
Janu
ary,
200
7.
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
316
Dire
ctiv
e
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
In t
he T
arff
petit
ion
the
Boa
rd h
as s
tate
d th
at B
SE
B h
as t
aken
up
R&
M w
ork
of U
nit
VI
and
VII
of B
TP
S u
nder
the
RS
VY
sc
hem
e sa
nctio
ned
by th
e P
lann
ing
Com
mis
sion
, Gov
ernm
ent
of In
dia.
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
T
he B
oard
is d
irect
ed to
furn
ish
the
upda
ted
stat
us o
f R&
M a
ctiv
ities
of
unit
no.
VI a
nd V
II of
BT
PS
by
30th J
uly
2012
.
Dire
ctiv
e N
o. 2
5: N
ew
Gen
erat
ion
Pro
ject
s T
he B
SE
B i
s di
rect
ed t
o ex
pedi
te t
he p
roce
ss o
f se
ttin
g up
of
new
gen
erat
ion
proj
ects
in
the
Sta
te a
nd s
ubm
it qu
arte
rly p
rogr
ess
repo
rt o
n th
e sa
me
to th
e C
omm
issi
on. T
he fi
rst s
uch
repo
rt s
hall
be s
ubm
itted
in A
pril
2007
.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
No
spec
ific
resp
onse
s ha
s be
en p
rovi
ded
by th
e B
oard
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
T
he B
oard
is d
irec
ted
to f
urni
sh t
he u
pdat
ed s
tatu
s of
new
gen
erat
ing
plan
t pl
anne
d to
be
inst
alle
d in
the
sta
te in
dica
ting
the
likel
y da
te o
f com
mis
sion
ing
on q
uart
erly
bas
is a
nd fi
rst s
uch
repo
rt b
e su
bmitt
ed b
y 10
st J
uly
2012
Dire
ctiv
e N
o. 2
6: E
mpl
oyee
co
st
As
per
info
rmat
ion
mad
e av
aila
ble
by t
he B
SE
B,
the
empl
oyee
cos
t of
BS
EB
is h
igh
whi
ch s
tand
s at
abo
ut 4
0% o
f th
e to
tal r
even
ue in
com
e fr
om s
ale
of p
ower
at e
xis
ting
tarif
f. It
wor
ks o
ut to
be
arou
nd 1
20 p
aise
pe
r kW
h of
ene
rgy
sold
, w
here
as,
in o
ther
sta
tes,
eve
n w
here
the
Sta
te
Ele
ctric
ity B
oard
has
not
bee
n re
stru
ctur
ed, i
t i
s of
the
orde
r of
60
pai
se p
er k
Wh
of e
nerg
y so
ld. T
here
is n
o in
fras
truc
ture
in s
ome
cruc
ial a
nd im
port
ant
activ
ities
whe
reas
ther
e is
ex
cess
sta
ff in
som
e de
part
men
ts,
whi
ch a
re n
ot s
o si
gnifi
cant
. T
he B
SE
B i
s di
rect
ed t
o en
forc
e ec
onom
y an
d au
ster
ity m
easu
res
in t
heir
oper
atio
ns a
nd t
ake
urg
ent
step
s to
red
uce
esta
blis
hmen
t co
st b
y ut
ilizi
ng t
he e
xist
ing
man
-pow
er o
ptim
ally
im
posi
ng r
estr
ictio
ns o
n cr
eati
on o
f po
sts,
int
rodu
cing
rev
ised
wor
k lo
ad n
orm
s an
d al
so
redu
cing
pos
ts w
hich
are
not
sig
nific
ant
BS
EB
sha
ll s
et u
p a
com
mitt
ee t
o su
gges
t an
d re
com
men
d de
ploy
men
t of
ex
istin
g m
an-p
ower
to
achi
eve
optim
um u
tiliz
atio
n o
f av
aila
ble
wor
k fo
rce.
BS
EB
is
also
dire
cted
to
iden
tify
the
surp
lus
staf
f and
dep
loy
them
, afte
r pr
oper
tra
inin
g, in
the
are
as o
f cu
stom
er s
ervi
ce,
such
as
met
er
read
ing,
bill
ing
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
317
Dire
ctiv
e
and
reve
nue
real
izat
ion,
so
as to
pro
vide
bet
ter
serv
ice
to th
e co
nsum
ers.
A r
epor
t on
the
actio
n ta
ken
may
be
sent
to
the
Com
mis
sion
by
30th
Jun
e 20
07.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
i) T
he d
etai
led
zero
-bas
ed a
naly
sis
of m
an-p
ower
has
bee
n do
ne.
BS
EB
is
wor
king
with
man
-pow
er l
esse
r th
an
zero
ba
sed
man
pow
er r
equi
rem
ent.
ii)
Cir
cula
r ha
s be
en is
sued
for
aus
teri
ty a
nd le
sser
exp
ens
es
to a
ll of
ficer
s.
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
T
he d
irec
tives
giv
en i
n pr
evio
us T
ariff
Ord
er h
as n
ot b
een
com
plie
d by
the
Boa
rd.
No
stud
y re
port
in
this
reg
ard
has
been
su
bmitt
ed b
y th
e B
oard
till
date
. So,
the
Boa
rd is
dire
cted
to s
ubm
it th
e st
udy
repo
rt a
nd a
naly
sis
done
by
31st J
uly
2012
.
Dire
ctiv
e N
o. 2
7: E
nerg
y co
nser
vatio
n
A w
ell-k
now
n pr
over
b is
tha
t en
ergy
con
serv
ed i
s en
ergy
gen
erat
ed a
nd t
o co
nser
ve e
nerg
y, t
he c
onsu
mer
s ar
e re
quire
d to
be
wel
l edu
cate
d by
way
of
dem
onst
ratio
ns,
hold
ing
mee
tings
at
vario
us le
vels
and
thr
ough
pr
int
med
ia
so t
hat
ener
gy c
onsu
mpt
ion
can
be r
educ
ed c
onsi
dera
bly
by
adop
ting
econ
omy
mea
sure
s su
ch a
s us
e of
ene
rgy
effic
ienc
y lig
htin
g, h
igh
effic
ienc
y an
d st
anda
rd m
ake
hous
ehol
d ap
plia
nces
, hi
gh e
ffici
ency
pum
p se
ts p
refe
rabl
y w
ith
labe
ls
of
Bur
eau
of
Ene
rgy
Effi
cien
cy
(BE
E)
and
othe
r en
ergy
co
nser
vatio
n de
vice
s.
All
cate
gorie
s
of
cons
umer
s sh
ould
be
wel
l ap
pris
ed o
f th
e ne
wly
dev
elo
ped
late
st e
nerg
y co
nser
vatio
n de
vice
s so
tha
t th
e en
ergy
co
nser
ved
can
be u
tiliz
ed fo
r m
ore
prod
uctiv
e pu
rpo
ses
and
in c
onso
nanc
e w
ith d
irect
ion
issu
ed b
y th
e M
inis
try
of
Pow
er,
Gov
ernm
ent
of I
ndia
, it
shal
l be
mad
e m
anda
tor
y to
use
IS
I m
ark
mot
or p
ump
sets
, po
wer
cap
acito
r, fo
ot /
re
flex
valv
es in
all
new
con
nect
ions
in a
gric
ultu
re s
ecto
r.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
Pilo
t pr
ojec
t fo
r de
mon
stra
tion
of e
nerg
y ef
ficie
ncy
me
ans
and
mea
sure
s in
col
labo
ratio
n w
ith B
RE
DA
and
BE
E (
Bur
eau
of
Ene
rgy
Effi
cien
cy)
has
been
pla
nned
und
er P
ES
U a
rea.
BR
ED
A a
nd B
EE
hav
e to
arr
ange
the
pilo
t pro
ject
s.
Com
mis
sion
’s v
iew
in th
e S
ince
FY
200
6-07
the
Boa
rd h
as n
ot p
rovi
ded
the
sat
isfa
ctor
y re
spon
se.
The
Boa
rd is
dir
ecte
d to
sub
mit
the
late
st r
epor
t on
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
318
Dire
ctiv
e
Tar
iff O
rder
of F
Y 2
012-
13
impl
emen
tatio
n on
ene
rgy
cons
erva
tion
mea
sure
s an
d cr
eatin
g aw
aren
ess
amon
g co
nsum
ers
by 3
0th J
une
2012
.
Dire
ctiv
e N
o. 2
8:
Inve
stm
ent P
rogr
amm
e
It is
obs
erve
d th
at th
e B
oard
has
nei
ther
sub
mitt
ed a
ny fu
ture
inve
stm
ent p
rogr
amm
e no
r th
e de
tails
of
cap
ital w
orks
in
pro
gres
s (C
WIP
) w
ith th
e ta
riff
petit
ion.
The
BS
EB
is d
irect
ed to
sub
mit
with
in n
ext
thre
e m
onth
s t
heir
inve
stm
ent
prog
ram
me
for
the
next
5 y
ears
and
det
ails
of C
WIP
. A
qua
rter
ly p
rogr
ess
repo
rt o
n m
ajor
inve
stm
ent w
ork
s sh
ould
al
so b
e fu
rnis
hed
regu
larly
to th
e C
omm
issi
on a
nd t
he fi
rst s
uch
repo
rt fo
r qu
arte
r en
ding
Mar
ch, 2
007
be
subm
itted
in
Apr
il 20
07.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
No
Res
pons
e ha
s be
en p
rovi
ded
by t
he B
oard
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
The
Boa
rd w
as d
irect
ed t
o su
bmit
a qu
arte
rly p
rogr
ess
repo
rt o
n m
ajor
inve
stm
ent w
orks
but
the
sam
e ha
s no
t bee
n co
mpl
ied
by t
he B
oard
and
has
not
sub
mitt
ed a
ny s
uch
com
plia
nce
in t
he t
ariff
pet
ition
for
FY
201
2-13
. T
he d
etai
led
inve
stm
ent
prog
ram
for
FY
201
2-13
and
act
ual
inve
stm
ent
done
for
FY
201
1-12
sha
ll be
pro
vide
d by
the
Boa
rd a
nd s
ubm
itted
to
the
Com
mis
sion
by
30th J
une
2012
.
Dire
ctiv
e N
o. 2
9: A
PD
RP
S
chem
es
The
sta
tus
of im
plem
enta
tion
of t
hese
sch
emes
, am
ount
util
ized
upt
o 31
st D
ecem
ber,
200
6, t
he b
enef
its a
ccru
ed b
y w
ay o
f inc
reas
e in
met
ered
sal
es, r
educ
tion
of d
ist
ribut
ion
loss
, im
prov
emen
t in
qual
ity o
f sup
ply,
re
venu
e et
c. s
hall
be r
epor
ted
to th
e C
omm
issi
on b
y 31
st M
arch
200
7.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
i) A
PD
RP
has
bee
n s
hort
clo
sed
and
rest
ruct
ured
as
RA
PD
RP
. A
s su
ch it
will
be
prem
atur
e to
ass
ess
the
ben
efits
ac
crue
d to
BS
EB
und
er A
PD
RP
. ii)
R
-AP
DR
P p
art-
A i
s be
ing
impl
emen
ted
in 6
4 to
wns
and
AD
B p
lan
is b
eing
impl
emen
ted
in 7
tow
ns.
The
ben
efit
unde
r th
ese
prog
ram
mes
can
be
asse
ssed
aft
er c
ompl
etio
n of
the
sam
e.
iii)
Und
er R
-AP
DR
P, t
he s
tatu
s of
met
erin
g as
on
08th N
ovem
ber,
201
1 is
as
belo
w:
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
319
Dire
ctiv
e
a.
Rin
g F
enci
ng (
33 k
V)
- 5
b.
Rin
g F
enci
ng (
11 k
V)
- 48
c.
F
eede
r M
eter
(33
kV
) -
5 d.
F
eede
r M
eter
(11
kV
) -
4 e.
C
onsu
mer
Met
er (
33 k
V)
- 0
f. C
onsu
mer
Met
er (
11 k
V)
- 9
g.
DT
Met
er –
10
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
T
he B
oard
sha
ll su
bmit
the
bene
fits
accr
ued
by w
ay o
f in
crea
se in
met
ered
sal
es,
redu
ctio
n of
dis
trib
utio
n lo
ss,
impr
ovem
ent
in q
ualit
y of
sup
ply,
rev
enue
etc
. for
FY
200
9-10
, FY
201
0-11
and
FY
201
1-12
by
30th J
une
2012
.
Dire
ctiv
e N
o. 3
0:
Reg
iste
red
and
effe
ctiv
e co
nsum
ers
It is
obs
erve
d fr
om t
he t
ariff
pet
ition
file
d by
BS
EB
tha
t th
e co
nsum
ers
are
cate
goriz
ed a
s re
gist
ered
and
effe
ctiv
e.
The
reg
iste
red
cons
umer
s ar
e th
ose
ente
red
in t
he b
ooks
and
effe
ctiv
e co
nsum
ers
are
thos
e w
hose
ser
vic
es a
re
aliv
e. T
hus
a la
rge
num
ber
of c
onsu
mer
s w
ho a
re o
n bo
oks
(reg
iste
red)
are
not
live
and
bill
ed.
It co
uld
be p
ossi
ble
that
som
e of
the
se c
onsu
mer
s m
ight
be
avai
ling
elec
tric
ity.
The
ser
vice
s of
con
sum
ers
whi
ch a
re n
ot li
ve f
or m
ore
than
thr
ee m
onth
s sh
ould
be
give
n no
tice
for
clea
ring
the
arre
ars
and
getti
ng th
e su
pply
res
tore
d w
ithin
a s
peci
fied
time.
If
they
fai
l to
do
so,
the
conn
ectio
n of
the
se
cons
umer
s sh
all
be d
ism
antle
d an
d ac
tion
take
n to
rea
lize
the
dues
. S
uch
serv
ices
sha
ll be
clo
sely
mon
itore
d by
the
Boa
rd a
nd s
trin
gent
act
ion
unde
r th
e pr
ovis
ions
of
the
E
lect
ricity
Act
, 20
03 a
gain
st s
uch
cons
umer
s be
tak
en w
ho a
re a
vaili
ng s
uppl
y. T
he s
ervi
ce c
onne
ctio
ns h
avin
g no
du
es a
nd n
ot w
illin
g to
tak
e re
conn
ectio
n sh
ould
be
rem
oved
fro
m t
he b
ooks
im
med
iate
ly.
A r
epor
t on
th
e ac
tion
take
n sh
all b
e se
nt to
the
Com
mis
sion
by
31st
Mar
ch, 2
007.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
No
Res
pons
e ha
s be
en p
rovi
ded
by t
he B
oard
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
A
s pe
r di
rect
ives
the
dis
conn
ecte
d co
nsum
ers
havi
ng d
ues
are
to b
e cl
osel
y m
onito
red
by t
he B
oard
and
str
inge
nt a
ctio
n to
be
ta
ken
for
real
izat
ion
of d
ues.
T
he
curr
ent
stat
us
of
regi
ster
ed a
nd
effe
ctiv
e co
nsum
ers
shal
l be
fu
rnis
hed
to t
he
Com
mis
sion
by
30th J
une
2012
and
the
qua
rter
ly r
epor
t on
mon
itorin
g of
col
lect
ion/
rea
lizat
ion
of d
ues
from
dis
conn
ecte
d
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
320
Dire
ctiv
e
cons
umer
s ha
ving
due
s sh
all b
e su
bmitt
ed to
the
Com
mis
sion
.
Dire
ctiv
e N
o. 3
1: C
ost o
f su
pply
and
cro
ss s
ubsi
dy
As
per
Cla
use
(g)
of s
ectio
n 61
of
the
Ele
ctric
ity
Act
, 20
03,
the
Com
mis
sion
is t
o en
sure
that
the
tar
iff p
rogr
essi
vely
re
flect
s th
e co
st o
f su
pply
and
cro
ss s
ubsi
dy is
re
duce
d w
ithin
a s
peci
fied
perio
d. I
n th
is c
onte
xt,
the
Com
mis
sion
di
rect
s th
e B
oard
to c
arry
out
a s
tudy
to a
scer
tain
vol
tage
-wis
e an
d co
nsum
er c
ateg
ory-
wis
e co
st o
f su
pply
. T
his
is
nece
ssar
y fo
r th
e pu
rpos
e of
bet
ter
tarif
f de
sign
as
also
to
find
out
the
natu
re a
nd e
xten
t of
cro
ss s
ubsi
dy.
The
B
SE
B s
hall
carr
y ou
t the
stu
dy a
nd s
ubm
it th
e st
udy
rep
ort t
o th
e C
omm
issi
on w
ithin
a p
erio
d of
six
mo
nths
.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
The
Boa
rd s
tate
d th
at o
ther
SE
Bs
and
utili
ty a
re b
eing
con
tact
ed fo
r th
eir
met
hodo
logi
es.
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
The
Com
mis
sion
aga
in r
eite
rate
s its
dire
ctiv
e gi
ven
in T
ariff
Ord
er fo
r F
Y 2
006-
07 a
nd s
how
s its
dis
plea
sure
on
the
inab
ility
of
the
Boa
rd t
o co
nduc
t th
e sa
id s
tudy
. T
he C
omm
issi
on d
irect
s th
e B
oard
to
subm
it th
e in
form
atio
n on
act
ion
take
n fo
r w
orki
ng
out
volta
ge w
ise
Cos
t of S
ervi
ce (
CoS
) st
udy
by 3
1st J
uly
2012
.
Dire
ctiv
e N
o. 3
2:
Res
tric
tions
on
cons
umpt
ion
of E
nerg
y
Sin
ce g
ener
atio
n of
ene
rgy
is q
uite
insi
gnifi
cant
in
the
Sta
te a
nd th
e po
wer
ava
ilabl
e in
clud
ing
that
pu
rcha
sed
from
ot
her
agen
cies
is n
ot a
dequ
ate,
the
Boa
rd h
as b
een
reso
rtin
g to
uns
ched
uled
load
she
ddin
g. T
houg
h so
me
par
t of
th
e ur
ban
area
s ar
e pr
ivile
ged
in t
his
mat
ter
for
get
ting
supp
ly o
f el
ectr
icity
, ru
ral
area
is
the
wor
st c
asua
lty.
The
vi
ew o
f th
e C
omm
issi
on i
s th
at i
f on
e do
es n
ot h
ave
ade
quat
e re
sour
ces
to c
ater
to
the
requ
irem
ent
of
the
vast
m
asse
s w
ho a
re n
eedy
, ra
tioni
ng i
s th
e on
ly o
ptio
n in
a w
elfa
re s
tate
whe
re e
very
one
has
equa
l rig
ht f
or u
se o
f a
scar
ce c
omm
odity
. It i
s hi
gh ti
me
in th
e S
tate
tha
t p
eopl
e sh
ould
be
cons
ciou
s in
the
mat
ter
of e
nerg
y c
onsu
mpt
ion
and
shou
ld p
ut r
estr
ictio
n on
use
of
elec
tric
ity v
olu
ntar
ily w
hich
wou
ld b
e se
lf-re
gula
ting,
tho
ugh
it c
anno
t be
rul
ed
out
that
exi
genc
y m
ay a
rise
whe
n it
coul
d be
reg
ula
tory
com
puls
ion
for
man
dato
ry r
estr
ictio
n on
con
sum
ptio
n of
el
ectr
icity
. T
he C
omm
issi
on d
irect
s th
e B
oard
to
educ
ate
the
cons
umer
s to
coo
pera
te w
ith t
he B
oard
in
rest
rictin
g th
e us
e of
ele
ctric
ity b
y vo
lunt
ary
effo
rt.
Com
plia
nce
stat
us o
f dire
ctiv
e
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
321
Dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
The
Boa
rd s
tate
d th
at
i) A
dem
onst
ratio
n pr
ojec
t with
the
help
of
BE
E a
nd B
RE
DA
has
bee
n or
gani
zed
in t
he P
ES
U a
rea.
ii)
In
stru
ctio
n ha
s b
een
issu
ed t
o th
e of
ficer
s of
the
Boa
rd t
o sp
read
the
ene
rgy
effic
ienc
y an
d e
cono
my
awar
enes
s du
ring
cons
umer
’s m
eet.
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
As
dire
cted
, B
oard
is
requ
ired
to
educ
ate
the
Con
sum
ers
rest
rictin
g th
e us
e of
ele
ctric
ity b
y vo
lunt
ary
effo
rt.
But
it
appe
ars
that
no
such
act
ion
has
been
take
n to
edu
cate
the
cons
umer
s.
The
Boa
rd i
s di
rect
ed t
o su
bmit
the
late
st r
epor
t on
cre
atio
n of
aw
aren
ess
for
impl
emen
tatio
n on
ene
rgy
cons
erva
tion
mea
sure
s an
d cr
eatin
g aw
aren
ess
amon
g co
nsum
ers
by 3
0th J
une
2012
.
Dire
ctiv
e N
o. 3
3: S
CA
DA
an
d D
ata
man
agem
ent
The
Com
mis
sion
feel
s th
at fo
r ef
fect
ive
wor
king
of
dist
ribut
ion
syst
em a
tim
e bo
und
prog
ram
me
for
impl
emen
tatio
n of
SC
AD
A a
nd d
ata
man
agem
ent
is e
ssen
tial.
A r
epor
t o
n im
plem
enta
tion
of s
uch
a sc
hem
e sh
ould
be
subm
itte
d by
th
e B
oard
for
appr
oval
by
the
Com
mis
sion
by
Mar
ch,
2007
.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff
petit
ion
of F
Y 2
012-
13
No
Res
pons
e ha
s be
en p
rovi
ded
by t
he B
oard
Com
mis
sion
’s v
iew
in th
e T
ariff
Ord
er o
f FY
201
2-13
T
he B
oard
sha
ll pr
ovid
e th
e la
test
sta
tus
of S
CA
DA
and
dat
a m
anag
emen
t im
plem
enta
tion
by 3
0th J
une
2012
.
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
322
9.4
Dire
ctiv
es is
sued
in T
ariff
Ord
er o
f FY
200
8-09
Dire
ctiv
e
Dire
ctiv
e N
o. 1
: HT
Con
sum
er
cells
in B
SE
B
The
con
trib
utio
n to
the
rev
enue
of
the
Boa
rd b
y H
T
indu
stria
l con
sum
ers
is s
ubst
antia
l. Th
ese
cons
umer
s ar
e cr
oss
subs
idiz
ing
the
dom
estic
and
agr
icul
tura
l con
sum
ers
who
are
sup
plie
d po
wer
bel
ow th
e av
erag
e co
st o
f su
pply
. It
is t
here
fore
exp
ecte
d th
at t
he B
oard
pro
vide
s th
em q
ualit
y po
wer
and
ser
vice
to
them
. T
heir
co
mpl
aint
s re
gard
ing
elec
tric
ity s
uppl
y sh
ould
be
atte
nded
pro
mpt
ly.
Kee
ping
thi
s in
vie
w,
The
Com
mis
sio
n di
rect
ed th
e B
oard
to e
stab
lishe
s a
HT
cel
l in
the
head
offi
ce a
t Pat
na a
nd a
t im
port
ant U
rban
Indu
str
ial C
entr
es
in th
e st
ate.
The
cel
l at t
he h
eadq
uart
ers
shou
ld b
e he
aded
by
an E
xecu
tive
Eng
inee
r w
ith s
uppo
rtin
g s
taff.
The
ce
ll sh
all b
e a
sing
le w
indo
w c
onta
ct fo
r at
tend
ing
to a
ll th
eir
prob
lem
s. T
he B
oard
sha
ll pr
epar
e a
sch
eme
for
esta
blis
hmen
t of
suc
h ce
lls a
nd e
nsur
e th
at t
hese
are
fun
ctio
nal w
ithin
a p
erio
d of
thr
ee m
onth
s. C
omp
lianc
e m
ay b
e re
port
ed b
y 31
st D
ecem
ber
2008
.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff p
etiti
on
of F
Y 2
012-
13
No
Spe
cific
res
pons
e ha
s be
en s
ubm
itted
by
the
Boa
rd.
Com
mis
sion
’s v
iew
in th
e T
ariff
O
rder
of
FY
201
2-13
The
no.
of
com
plai
nts/
pro
blem
s re
ceiv
ed d
urin
g F
Y 2
010-
11 a
nd F
Y 2
011-
12 a
nd r
esol
ved
by t
he H
T c
onsu
mer
cel
l of
BS
EB
hea
dqua
rter
sha
ll be
fur
nish
ed t
o th
e C
omm
issi
on b
y 30
th J
une
201
2, a
nd t
here
afte
r ha
lf ye
arly
pro
gres
s re
port
sh
all b
e su
bmitt
ed b
y th
e B
oard
.
Dire
ctiv
e N
o. 2
: Iss
ues
rela
ting
to h
igh
valu
e co
nsum
ers
Bas
ed o
n th
e da
ta fu
rnis
hed
by th
e B
oard
for
FY
200
7-08
, the
Com
mis
sion
obs
erve
d th
at H
T c
onsu
mer
s co
ntrib
ute
40%
of t
he to
tal r
even
ue, L
T c
onsu
mer
s c
ontr
ibut
e 8.
3% o
f the
tota
l rev
enue
and
LT
com
mer
cial
co
nsum
ers
cont
ribut
e 11
.5%
of t
otal
rev
enue
. In
thi
s re
gard
, the
Com
mis
sion
dire
cted
the
Boa
rd to
giv
e p
riorit
y to
thes
e H
igh
valu
e C
onsu
mer
s in
the
follo
win
g op
erat
iona
l asp
ects
:
• R
epla
cem
ent o
f ele
ctro
mag
netic
met
ers
by s
tatic
met
ers
• R
epla
cem
ent o
f sto
pped
/ de
fect
ive
met
ers.
•
Che
ckin
g of
all
H.T
ser
vice
s by
the
Spe
cial
Tas
k Fo
rce
offic
ers
atle
ast o
nce
in 3
mon
ths.
•
Che
ckin
g of
Nil
cons
umpt
ion
& B
ill s
topp
ed s
ervi
ces
whi
ch w
ere
earli
er r
ecor
ding
abo
ut 1
000
units
per
m
onth
.
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
323
Dire
ctiv
e
• H
igh
valu
e LT
ind
ustr
ial
com
mer
cial
ser
vice
s an
d do
mes
tic c
onsu
mer
s (m
onth
ly b
ill e
xcee
ding
Rs
1000
) to
be
insp
ecte
d by
Spe
cial
Tas
k Fo
rce
atle
ast
onc
e in
six
mon
ths.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff p
etiti
on
of F
Y 2
012-
13
No
Spe
cific
res
pons
e ha
s be
en s
ubm
itted
by
the
Boa
rd.
Com
mis
sion
’s v
iew
in th
e T
ariff
O
rder
of
FY
201
2-13
A
n on
line
port
al s
yste
m fo
r at
tend
ing
the
prob
lem
s of
HT
con
sum
ers
shal
l be
intr
oduc
ed b
y th
e B
SE
B a
nd s
tatu
s re
port
sh
all b
e su
bmitt
ed to
the
Com
mis
sion
at h
alf y
early
inte
rval
sta
rtin
g 30
th J
une
2012
.
Dire
ctiv
e N
o 3:
Mon
itorin
g of
HT
an
d hi
gh v
alue
LT
Con
sum
er
met
er r
eadi
ngs
The
Com
mis
sion
dire
cted
the
Boa
rd t
o is
sue
nece
ssar
y in
stru
ctio
ns t
o th
e co
ncer
ned
offic
ers
and
staf
f an
d m
onito
r th
e co
mpl
ianc
e w
ith r
espe
ct to
the
inst
ruct
ions
giv
en fo
r m
eter
rea
ding
. The
Com
mis
sion
als
o d
irect
ed
that
th
e B
oard
sh
all
caus
e ne
cess
ary
inst
ruct
ions
t
o th
e co
ncer
ned
offic
ers
and
staf
f an
d m
onito
r th
e co
mpl
ianc
e. A
ctio
n ta
ken
may
be
repo
rted
to th
e C
omm
issi
on b
y 31
st D
ecem
ber
2008
.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff p
etiti
on
of F
Y 2
012-
13
No
Spe
cific
res
pons
e ha
s be
en s
ubm
itted
by
the
Boa
rd.
Com
mis
sion
’s v
iew
in th
e T
ariff
O
rder
of
FY
201
2-13
T
he u
pdat
ed c
ompl
ianc
e st
atus
rep
ort s
hall
be s
ubm
itted
by
the
Boa
rd to
the
Com
mis
sion
by
30th J
une
2012
.
Dire
ctiv
e N
o. 4
: Pro
mpt
rel
ease
of
sup
ply
to n
ew c
onsu
mer
s
The
Com
mis
sion
di
rect
ed t
he
Boa
rd t
o pr
ompt
ly d
eal
with
new
ap
plic
ants
ap
proa
chin
g B
oard
fo
r ne
w
conn
ectio
ns a
nd t
ake
actio
n av
oidi
ng d
elay
s at
eve
ry
leve
l. T
he B
oard
is
dire
cted
to
proc
ure
the
requ
ire
d nu
mbe
r of
met
ers
and
keep
the
m in
sto
ck. I
t als
o no
ticed
that
in c
erta
in c
ases
rel
ease
of
new
con
nect
ion
s w
as
bein
g de
laye
d fo
r w
ant
of m
eter
s. I
n su
ch c
ases
, it
dire
cted
the
Boa
rd t
o al
low
con
sum
ers
to p
urch
ase
thei
r ow
n m
eter
s of
spe
cifie
d qu
ality
, cap
acity
and
mak
e.
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
324
Dire
ctiv
e
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff p
etiti
on
of F
Y 2
012-
13
No
Spe
cific
res
pons
e ha
s be
en s
ubm
itted
by
the
Boa
rd.
Com
mis
sion
’s
view
in
th
e T
ariff
O
rder
of
FY
201
2-13
Dur
ing
the
publ
ic h
eari
ng a
t diff
eren
t pla
ce,
cons
umer
s su
bmitt
ed b
efor
e th
e C
omm
issi
on th
at th
e ne
w c
onne
ctio
ns a
re
not
rele
ased
in ti
me
and
stan
dard
of p
erfo
rman
ce is
not
mai
ntai
ned
by th
e B
oard
. So,
the
Com
mis
sion
dir
ects
the
Boa
rd t
o en
sure
to
cond
uct s
urve
y of
rur
al a
reas
, de
velo
ps a
mar
ketin
g an
d aw
aren
ess
prog
ram
me
for
such
are
as a
nd
prov
ides
new
con
nect
ions
thr
ough
spe
cial
cam
ps. T
he C
omm
issi
on a
lso
dire
cts
the
Boa
rd to
dev
elop
an
actio
n pl
an f
or
the
abov
e an
d su
bmit
the
sam
e to
the
Com
mis
sion
with
in th
ree
mon
ths
of th
e O
rder
. The
reaf
ter,
the
Boa
rd s
hall
regu
larl
y su
bmit
the
Com
plia
nce
repo
rt o
n qu
arte
rly b
asis
.
The
Com
mis
sion
als
o di
rect
s th
e P
etiti
oner
to
take
all
the
step
s to
impl
emen
t th
e st
anda
rds
of p
erfo
rman
ce a
nd e
nsur
e
the
new
con
nect
ions
are
giv
en in
tim
e as
per
the
Sta
ndar
ds o
f P
erfo
rman
ce R
egul
atio
ns.
Dire
ctiv
e N
o.5:
Red
uctio
n of
AT
&
C L
osse
s
As
per
tarif
f pe
titio
n fo
r F
Y 2
008-
09,
the
AT
&C
los
ses
for
FY
200
6, F
Y20
07 a
nd F
Y 2
008
are
very
hig
h.
The
se
greg
atio
n of
tec
hnic
al a
nd c
omm
erci
al l
osse
s th
roug
h pr
oper
los
s st
udy
shal
l be
don
e an
d re
port
on
thi
s sh
all b
e su
bmitt
ed b
efor
e th
e C
omm
issi
on b
y D
ecem
ber,
200
8. T
he C
omm
issi
on d
irect
ed t
he B
oard
to c
olle
ct
100%
of t
he m
onth
ly b
ills
amou
nt a
nd a
noth
er m
inim
um
10%
of t
he a
rrea
rs o
utst
andi
ng e
very
mon
th.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff p
etiti
on
of F
Y 2
012-
13
No
Spe
cific
res
pons
e ha
s be
en s
ubm
itted
by
the
Boa
rd.
Com
mis
sion
’s v
iew
in th
e T
ariff
O
rder
of
FY
201
2-13
The
Com
mis
sion
has
dire
cted
to
the
Boa
rd t
o co
llect
100
% o
f m
onth
ly b
ills
amou
nt a
nd a
noth
er m
inim
um 1
0% o
f th
e ar
rear
s am
ount
eve
ry m
onth
, bu
t th
e B
oard
has
not
sub
mitt
ed t
hat
they
are
com
plyi
ng.
The
Com
mis
sion
rei
tera
tes
the
dire
ctiv
es 1
, 6
and
7 of
Tar
iff O
rder
for
FY
200
6-07
and
for
col
lect
ion
of a
mou
nt a
s di
rect
ed in
the
Tar
iff O
rder
for
FY
20
08-0
9.
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
325
9.5
Dire
ctiv
es is
sued
in T
ariff
Ord
er o
f FY
201
0-11
Dire
ctiv
e
Dire
ctiv
e N
o. 1
: Pre
pai
d m
eter
s
The
Com
mis
sion
dire
cted
the
Boa
rd to
pro
vide
pre
pai
d m
eter
s to
som
e do
mes
tic c
onsu
mer
s as
a p
ilot s
tud
y to
en
cour
age
and
mak
e th
e co
nsum
ers
to o
bser
ve t
he a
dvan
tage
s of
hav
ing
prep
aid
met
er f
acili
ty.
It al
so
obse
rved
tha
t su
bseq
uent
ly B
oard
may
sug
gest
the
co
nsum
ers
to p
urch
ase
the
prep
aid
met
ers
at t
heir
own
co
st b
y of
ferin
g so
me
reba
te s
ay a
bout
10%
in
ener
gy
char
ge,
with
no
secu
rity
for
prep
aid
cons
umer
s. T
he
Com
mis
sion
dire
cted
the
Boa
rd to
furn
ish
the
repo
rt o
n th
e ac
tion
take
n in
this
reg
ard
by 3
0th
Apr
il 2
011.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff p
etiti
on
of F
Y 2
011-
12
The
Boa
rd s
tate
d th
at t
he C
EA
is in
pro
cess
of
spec
ifica
tion
form
ulat
ion
and
final
izat
ion
of p
re-p
aid
met
ers.
Due
to h
igh
cost
of
pre-
paid
met
ers.
Boa
rd is
yet
to la
unch
the
sch
eme
of p
re-p
aid
met
ers
to s
elec
ted
cons
umer
s un
der
pilo
t.
Com
mis
sion
’s v
iew
in th
e T
ariff
O
rder
of
FY
201
1-12
T
he C
omm
issi
on s
tate
d th
at th
e co
mpl
ianc
e m
ay b
e re
view
ed w
ith th
e ne
xt ta
riff p
etiti
on a
nd w
ill b
e di
scus
sed
sepa
rate
ly.
BS
EB
’s r
espo
nse
in ta
riff p
etiti
on
of F
Y 2
012-
13
The
Boa
rd in
form
ed t
he C
omm
issi
on t
hat
it ha
s se
nt s
ugge
stio
n to
CE
A f
or f
inal
izat
ion
of s
peci
ficat
ion,
form
ulat
ion
and
final
izat
ion
of p
re-p
aid
met
ers.
The
Boa
rd s
tate
d th
at i
t ha
s go
t le
arni
ng f
rom
Del
hi a
nd K
olka
ta.
The
Boa
rd i
nfor
med
th
at M
anuf
actu
rers
hav
e be
en i
nvite
d fo
r pr
esen
tatio
n on
the
sam
e in
Sep
t’ 20
11.
The
Boa
rd h
ighl
ight
ed d
iffic
ulty
in
impl
emen
tatio
n of
pre
-pai
d m
eter
s lik
e A
ccou
ntin
g di
ffic
ulty
, S
oftw
are
upda
tion
requ
ired
(fo
r ch
argi
ng F
PP
CA
) an
d in
stan
ces
on b
y-pa
ss o
f m
eter
.
Com
mis
sion
’s v
iew
in th
e T
ariff
O
rder
of
FY
201
2-13
T
he P
etiti
oner
is d
irect
ed t
o fu
rnis
h co
st-b
enef
it an
alys
is o
f im
plem
entin
g pr
e-pa
id m
eter
ing
on p
ilot
basi
s es
peci
ally
for
co
nsum
ers
with
hig
h ar
rear
and
Gov
t. co
nnec
tions
with
in t
hree
mon
ths
of is
sue
of th
is o
rder
.
Dire
ctiv
e N
o. 2
: Sta
r Rat
ing
Dis
trib
utio
n T
rans
form
ers
The
Com
mis
sion
dire
cted
the
Boa
rd to
go
in fo
r pr
ocur
emen
t of d
istr
ibut
ion
tran
sfor
mer
s up
to 2
00 k
VA
w
ith
min
imum
of t
wo
“sta
r ra
ting
or s
tar
leve
l”. T
his
wa
s ap
plic
able
for p
urch
ase
of a
ll ne
w tr
ansf
orm
ers
for
whi
ch
tend
er h
as n
ot b
een
so fa
r flo
ated
/ pu
blis
hed
in t
he n
ewsp
aper
by
the
Boa
rd. T
he C
omm
issi
on h
as d
irec
ted
the
Boa
rd to
furn
ish
the
repo
rt o
n th
e ac
tion
take
n in
this
reg
ard
by 3
0th
Apr
il 20
11.
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
326
Dire
ctiv
e
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff p
etiti
on
of F
Y 2
011-
12
The
Boa
rd s
tate
d th
at it
is n
ot p
rocu
ring
Sta
r R
atin
g D
Ts
due
to h
ighe
r co
st o
f su
ch D
Ts a
nd
is c
olle
ctin
g da
ta a
nd
feed
back
from
Kol
katt
a an
d D
elhi
on
such
tran
sfor
mer
s. T
he B
oard
info
rmed
that
it is
stu
dyin
g th
e fin
anci
al v
iabi
lity
of
inst
allin
g st
ar r
atin
g D
Ts.
Com
mis
sion
’s v
iew
in th
e T
ariff
O
rder
of
FY
201
1-12
T
he C
omm
issi
on a
dvis
ed t
he B
oard
to d
iscu
ss th
is.
BS
EB
’s r
espo
nse
in ta
riff p
etiti
on
of F
Y 2
012-
13
The
Boa
rd s
tate
d th
at t
he c
omm
ittee
has
bee
n fo
rmed
to m
ake
tech
nica
l spe
cific
atio
n an
d pr
ocur
emen
t of n
ext
Lot
of
DT
s w
ill b
e st
ar r
ated
.
Com
mis
sion
’s v
iew
in th
e Ta
riff
Ord
er o
f F
Y 2
012-
13
The
Boa
rd is
dire
cted
to fo
llow
the
spe
cific
atio
n of
ele
ctri
cal e
quip
men
ts a
s sp
ecifi
ed b
y B
EE
und
er th
e st
anda
rd a
nd
labe
ling
prog
ram
and
furn
ish
com
plia
nce
repo
rt to
the
Com
mis
sion
by
30th J
une
2012
and
the
reaf
ter
on q
uart
erly
bas
is.
Dire
ctiv
e N
o. 3
: Pro
vidi
ng
Met
ers
at L
V s
ide
of a
ll D
istr
ibut
ion
Tra
nsfo
rmer
s
The
Com
mis
sion
dire
cted
the
Boa
rd to
pro
vide
met
ers
to a
ll th
e un
met
ered
dis
tribu
tion
tran
sfor
mer
s w
ithi
n si
x m
onth
s. It
als
o di
rect
ed th
e B
oard
to u
nder
take
ene
rgy
acco
untin
g in
the
area
s w
here
met
ers
have
alre
ady
pr
ovid
ed fo
r th
e di
strib
utio
n tr
ansf
orm
ers
and
subm
it th
e co
pies
of s
uch
repo
rts
to th
e C
omm
issi
on e
very
m
onth
. The
Com
mis
sion
dire
cted
the
Boa
rd to
furn
ish
the
repo
rt of
ene
rgy
acco
untin
g in
res
pect
of t
hos
e di
strib
utio
n tr
ansf
orm
ers
in w
hich
met
ers
have
bee
n in
stal
led
by 3
1st M
arch
201
1.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff p
etiti
on
of F
Y 2
011-
12
The
Boa
rd s
tate
d th
at is
has
alre
ady
inst
alle
d 16
,035
dis
trib
utio
n tr
ansf
orm
er m
eter
s un
der
AP
DR
P s
chem
e an
d 7,
064
DT
met
ers
are
goin
g to
be
inst
alle
d un
der
R‐A
PD
RP
Sch
eme.
Com
mis
sion
’s v
iew
in th
e T
ariff
O
rder
of
FY
201
1-12
T
he C
omm
issi
on h
as n
oted
the
com
plia
nce.
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
327
Dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff p
etiti
on
of F
Y 2
012-
13
No
spec
ific
resp
onse
has
bee
n su
bmitt
ed b
y th
e B
oard
.
Com
mis
sion
’s v
iew
in th
e T
ariff
O
rder
of
FY
201
2-13
The
Com
mis
sion
has
dir
ecte
d th
e B
oard
to fu
rnis
h th
e re
port
of
ener
gy a
ccou
ntin
g in
res
pect
of t
hose
dis
trib
utio
n tr
ansf
orm
ers
in w
hich
met
ers
have
bee
n in
stal
led.
But
the
Boa
rd h
as n
ot c
ompl
ied
and
subm
itted
in r
epor
t reg
ardi
ng
the
ener
gy a
udit
resu
lts o
f tho
se d
istr
ibut
ion
tran
sfor
mer
s in
whi
ch m
eter
s ha
s be
en in
stal
led.
A C
ompr
ehen
sive
sta
tus
repo
rt o
n th
e fu
nctio
ning
/ w
orki
ng s
tatu
s of
the
inst
alle
d D
T m
eter
s an
d re
sult
of e
nerg
y au
dit
done
and
the
actio
n pl
an fo
r fu
ture
DT
met
er in
stal
latio
n sh
all b
e su
bmitt
ed t
o th
e C
omm
issi
on b
y 30
th J
une
2012
.
Dire
ctiv
e N
o. 4
: CF
Ls to
Kut
ir Jy
oti (
Rur
al)
Con
sum
ers
The
Com
mis
sion
dire
cted
the
Boa
rd to
pro
vide
CF
L la
mps
upt
o 30
wat
ts in
stea
d of
60
/ 100
wat
ts in
cand
esc
ent
lam
ps to
the
Kut
ir Jy
oti c
onsu
mer
s (t
o be
add
ed d
urin
g R
GG
VY
pro
gram
me)
. The
Com
mis
sion
als
o di
rect
ed
the
Boa
rd to
furn
ish
the
Act
ion
Tak
en R
epor
t in
thi
s re
gard
by
31st
Jan
uary
201
1.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff p
etiti
on
of F
Y 2
011-
12
The
Boa
rd r
eplie
d th
at u
nder
RG
VV
Y p
rogr
am, t
he s
ervi
ce c
onne
ctio
ns t
o B
PL
cate
gorie
s ar
e be
ing
give
n in
whi
ch C
FL
lam
ps u
pto
18 w
atts
are
bei
ng p
rovi
ded.
Insp
ectio
n by
fiel
d of
ficer
s sh
ows
that
the
bene
ficia
ries
use
mor
e th
an 3
0 W
att
lam
ps a
nd o
ther
gad
gets
in th
eir
prem
ises
.
Com
mis
sion
’s v
iew
in th
e T
ariff
O
rder
of
FY
201
1-12
T
he C
omm
issi
on h
as n
oted
the
com
plia
nce.
BS
EB
’s r
espo
nse
in ta
riff p
etiti
on
of F
Y 2
012-
13
No
spec
ific
resp
onse
has
bee
n su
bmitt
ed b
y th
e B
oard
.
Com
mis
sion
’s v
iew
in th
e T
ariff
O
rder
of
FY
201
2-13
T
he C
omm
issi
on d
irect
s th
e B
oard
to s
ubm
it th
e nu
mbe
r of
CF
Ls p
rovi
ded
to K
utir
Jyot
i co
nsum
ers
and
futu
re a
ctio
n pl
an t
o th
e C
omm
issi
on r
egul
arly
on
half
year
ly b
asis
. The
Firs
t suc
h re
port
sha
ll be
sub
mitt
ed b
y 30
th J
une
2012
.
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
328
Dire
ctiv
e
Dire
ctiv
e N
o. 5
: Con
nect
ing
up
Ren
ewab
le E
nerg
y so
urce
to th
e S
tate
Grid
The
Com
mis
sion
dire
cted
the
Boa
rd to
mak
e ar
rang
eme
nts
for
supe
rvis
ion
of th
e co
nstr
uctio
n of
the
tran
smis
sion
line
s fr
om r
enew
able
gen
erat
ion
sour
ces
whe
n ap
proa
ched
by
the
deve
lope
r, an
d fa
cilit
ate
to
conn
ect t
he li
ne to
the
Boa
rd’s
net
wor
k. T
he C
omm
issi
on d
irect
ed th
e B
oard
to fu
rnis
h th
e re
port
of s
uch
tr
ansm
issi
on li
nes
for e
vacu
atin
g en
ergy
from
RE
so
urce
s by
31s
t Mar
ch 2
011.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff p
etiti
on
of F
Y 2
011-
12
The
Boa
rd s
ubm
itted
the
stat
us o
f fo
llow
ing
tran
smis
sion
line
s:
1)
GS
S R
amna
gar
to L
auriy
a S
ugar
Mill
s (W
est
Cha
mpa
ran)
2)
G
SS
Mot
ihar
i to
Sug
auli
Sug
ar M
ills
(Eas
t C
ham
para
n)
3)
GS
S R
amna
gar
to H
arin
agar
Sug
ar M
ill (
orde
r re
cent
ly p
lace
d)
The
Boa
rd a
lso
stat
ed th
at a
ll th
e th
ree
proj
ects
are
bei
ng e
xecu
ted
on t
urn-
key
basi
s.
Com
mis
sion
’s v
iew
in th
e T
ariff
O
rder
of
FY
201
1-12
T
he C
omm
issi
on h
as n
oted
the
com
plia
nce.
BS
EB
’s r
espo
nse
in ta
riff p
etiti
on
of F
Y 2
012-
13
No
spec
ific
resp
onse
has
bee
n su
bmitt
ed b
y th
e B
oard
.
Com
mis
sion
’s v
iew
in th
e T
ariff
O
rder
of
FY
201
2-13
T
he B
oard
sha
ll fu
rnis
h th
e up
date
d st
atus
to
the
Com
mis
sion
reg
ardi
ng t
he li
nes
cons
truc
ted
to e
vacu
ate
pow
er
gene
ratio
n fr
om r
enew
able
sou
rce
and
the
prog
ress
ach
ieve
d in
thi
s re
gard
on
half
year
ly b
asis
.
Dire
ctiv
e N
o. 6
: Dem
and
Sid
e M
anag
emen
t (D
SM
)
The
Com
mis
sion
dire
cted
the
Boa
rd to
take
effe
ctiv
e s
teps
for
impl
emen
tatio
n of
dem
and
side
man
agem
ent
in
the
stat
e. T
he C
omm
issi
on a
lso
dire
cted
the
Boa
rd t
o re
port
the
stat
us o
f im
plem
enta
tion
of D
SM
and
TO
D
Tar
iff q
uart
erly
, with
Firs
t suc
h re
port
upt
o 31
st
Mar
ch 2
011
to b
e fu
rnis
hed
to th
e C
omm
issi
on b
y 30
th
Apr
il 20
11.
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
329
Dire
ctiv
e
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff p
etiti
on
of F
Y 2
011-
12
The
Boa
rd s
tate
d th
at f
or im
plem
enta
tion
of T
OD
bas
ed
tarif
f, so
ftwar
e in
the
HT
met
ers
have
bee
n in
stal
led.
The
B
oard
will
sub
mit
repo
rt o
n th
e sa
me
by 3
1st M
ay 2
011.
The
Boa
rd s
tate
d th
at d
urin
g m
onth
ly c
onsu
mer
mee
tings
, th
e ad
vant
ages
of
DS
M a
re e
xpla
ined
to
loca
l con
sum
ers
by th
e B
oard
’s o
ffic
ials
.
Com
mis
sion
’s v
iew
in th
e T
ariff
O
rder
of
FY
201
1-12
T
he C
omm
issi
on s
tate
d to
rev
iew
the
sta
tus
afte
r 3
mon
ths
BS
EB
’s r
espo
nse
in ta
riff p
etiti
on
of F
Y 2
012-
13
The
Boa
rd s
tate
d th
at d
urin
g th
e co
nsum
ers
mee
ting
the
cons
umer
s ar
e m
ade
awar
e of
DS
M. T
he B
oard
has
or
gani
zed
a de
mon
stra
tion
proj
ect o
f en
ergy
con
serv
atio
n in
PE
SU
are
a in
col
labo
ratio
n w
ith B
EE
(B
urea
u of
Ene
rgy
Eff
icie
ncy)
and
BR
ED
A.
Com
mis
sion
’s v
iew
in th
e T
ariff
O
rder
of
FY
201
2-13
T
he P
etiti
oner
is d
irect
ed t
o su
bmit
the
late
st p
rogr
ess
repo
rt o
n im
plem
enta
tion
on D
SM
mea
sure
s an
d T
oD t
ariff
on
quar
terl
y ba
sis
to th
e C
omm
issi
on.
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
330
9.6
Dire
ctiv
es is
sued
in T
ariff
Ord
er o
f FY
201
1-12
Dire
ctiv
e
Dire
ctiv
e N
o. 1
: Tim
ely
Sub
mis
sion
of t
ariff
pet
ition
T
he C
omm
issi
on d
irect
ed th
e B
oard
to fi
le ta
riff p
etit
ion
for F
Y 2
012‐ ‐‐‐13
on
or b
efor
e 15
th N
ovem
ber
2011
. Thi
s w
ill b
e es
sent
ial t
o en
sure
that
the
new
tarif
f is
appl
icab
le fr
om 1
st A
pril
2012
.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff p
etiti
on
of F
Y 2
012-
13
The
Boa
rd s
ubm
it th
at it
has
com
plie
d w
ith th
e di
rect
ive
Com
mis
sion
’s v
iew
in th
e T
ariff
O
rder
of
FY
201
2-13
The
Com
mis
sion
not
ed t
he c
ompl
ianc
e. H
owev
er, t
he C
omm
issi
on d
irec
ts t
he B
oard
to c
ompi
le a
nd m
aint
ains
the
dat
a,
rela
ted
to r
egul
ator
y re
quir
emen
t/ A
RR
on
a re
gula
r ba
sis
and
mak
es a
vaila
ble
the
copy
of t
he s
ame
to th
e C
omm
issi
on o
n qu
arte
rly b
asis
.
Dire
ctiv
e N
o. 2
: Ene
rgy
Aud
it
The
Com
mis
sion
rei
tera
ted
its e
arlie
r D
irect
ive
No.
8 is
sued
in T
ariff
Ord
er fo
r FY
200
6‐ ‐‐‐07
, dire
ctin
g th
e B
oard
to
rep
lace
met
ers
and
prov
ide
corr
ect m
eter
s on
all
feed
ers
from
220
KV
to 1
1KV
leve
l as
wel
l as
LT s
ide
of th
e di
strib
utio
n tr
ansf
orm
er o
n hi
ghes
t prio
rity
as w
ell a
s to
und
erta
ke e
nerg
y au
dit i
n al
l the
tow
ns w
ith
a po
pula
tion
of fi
fty th
ousa
nd a
nd a
bove
.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff p
etiti
on
of F
Y 2
012-
13
The
Boa
rd s
tate
d th
at it
has
set
tar
get o
f ac
hiev
ing
100%
met
erin
g by
Mar
ch 2
013.
The
Boa
rd p
rovi
ded
the
stat
us o
f m
eter
ing
as o
n S
epte
mbe
r’ 20
11 a
s gi
ven
belo
w:
Con
sum
er M
eter
ing
Sl.
Cat
egor
y N
os. o
f Con
sum
ers
Nos
. of m
eter
ed C
onsu
mer
s N
os. o
f Def
ectiv
e /
unm
eter
ed c
onsu
mer
s 1
33 k
V (
Gov
t.)
16
16
-
2 33
kV
(P
vt.)
54
54
-
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
331
Dire
ctiv
e
3 11
kV
HT
(G
ovt.)
45
8 28
0
178
4 11
kV
HT
(P
vt.)
58
9 58
9
-
Sys
tem
Met
erin
g:
Sl.
Cat
egor
y N
os. o
f Met
erin
g po
int
Nos
. of m
eter
ed p
oint
N
os. o
f Def
ectiv
e /
unm
eter
ed p
oint
1
33 k
V
660
370
29
0
2 11
kV
15
74
1038
53
6
3 11
kV
HT
(G
ovt.)
44
670
13
836
3083
4
The
Boa
rd s
tate
d th
at P
FC
has
app
oint
ed M
/s P
rana
t Eng
inee
ring
Ltd
. to
cond
uct t
hird
par
ty a
udit
unde
r R
-AP
DR
P
sche
me.
The
Boa
rd s
tate
d th
at th
e ex
perie
nce
from
this
will
be
appl
ied
for
non
R-A
PD
RP
are
a.
Com
mis
sion
’s v
iew
in th
e T
ariff
O
rder
of
FY
201
2-13
In r
egar
d to
sys
tem
met
erin
g st
atus
und
er th
e ca
tego
ry 1
1 kV
HT
(G
ovt.)
the
figur
es o
f met
erin
g po
ints
of 4
4,67
0 as
pr
ovid
ed b
y th
e B
oard
, is
not c
lear
. The
Com
mis
sion
is o
f th
e vi
ew th
at li
ttle
effo
rts
put i
n by
the
Pet
ition
er in
this
reg
ard
may
res
ult i
nto
dras
tic r
educ
tion
of d
istr
ibut
ion
loss
es. T
he P
etiti
oner
is, t
here
fore
, dire
cted
to p
rovi
de m
eter
s at
all
the
dist
ribut
ion
tran
sfor
mer
s in
loss
pro
ne a
reas
with
in t
hree
mon
ths
from
the
date
of i
ssua
nce
of th
is O
rder
and
ther
e af
ter
carr
y ou
t com
plet
e en
ergy
aud
it up
to 1
1 kV
leve
l for
the
entir
e sy
stem
and
upt
o LT
leve
l on
at le
ast o
ne 1
1 kV
feed
er in
ea
ch C
ircl
e an
d su
bmit
a co
mpr
ehen
sive
rep
ort
of th
e re
sults
by
30th J
une
2012
.
Dire
ctiv
e N
o. 3
: Est
imat
ion
of
ener
gy c
onsu
mpt
ion
leve
ls o
f K
utir
Jyot
i Con
sum
er C
ateg
ory
& A
gric
ultu
re s
ecto
r
The
Com
mis
sion
dire
cted
the
Boa
rd to
und
erta
ke tw
o st
udie
s (a
) to
est
imat
e av
erag
e en
ergy
con
sum
ptio
n of
th
e K
utir
Jyot
i con
sum
ers
and
(b)
to e
stim
ate
aver
age
ene
rgy
cons
umpt
ion
of th
e IA
S I
cons
umer
s. L
egit
imat
e co
sts
that
acc
rue
to th
e B
oard
to c
ondu
ct th
e st
udy
may
be
cons
ider
ed in
the
AR
R in
the
next
Tar
iff O
rde
r.
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff p
etiti
on
of F
Y 2
012-
13
The
Boa
rd s
ubm
itted
that
it h
as c
ondu
cted
pilo
t stu
dies
to
estim
ate
aver
age
ener
gy c
onsu
mpt
ion
of 1
0 K
J an
d IA
S
cons
umer
s at
Bih
ar s
harif
f in
one
vill
age
and
the
repo
rts
have
bee
n su
bmitt
ed a
long
with
the
petit
ion.
BE
RC
TA
RIF
F O
RD
ER
FO
R F
Y 2
012-
13
Bih
ar E
lect
ricity
Reg
ulat
ory
Com
mis
sion
P
age
332
Dire
ctiv
e
Com
mis
sion
’s v
iew
in th
e T
ariff
O
rder
of
FY
201
2-13
T
he B
oard
is d
irect
ed to
car
ry o
ut s
aid
stud
y on
the
basi
s of
larg
er r
epre
sent
ativ
e sa
mpl
e to
det
erm
ine
aver
age
ener
gy
cons
umpt
ion
for
adop
tion.
Dire
ctiv
e N
o. 4
: MY
T
Com
plia
nce
The
Com
mis
sion
dire
cted
the
Boa
rd to
sub
mit
an A
cti
on T
aken
Rep
ort (
AT
R) o
n its
pre
pare
dnes
s to
mov
e t
o M
YT
fram
ewor
k fo
r ta
riff d
eter
min
atio
n no
t lat
er th
an 3
0th
Sep
tem
ber
2011
Com
plia
nce
stat
us o
f dire
ctiv
e
BS
EB
’s r
espo
nse
in ta
riff p
etiti
on
of F
Y 2
012-
13
The
Boa
rd s
tate
d th
at M
YT
com
plia
nce
will
be
done
by
succ
esso
r co
mpa
nies
afte
r pr
opos
ed u
nbun
dlin
g of
BS
EB
.
Com
mis
sion
’s v
iew
in th
e T
ariff
O
rder
of
FY
201
2-13
The
Com
mis
sion
dire
cts
the
Pet
ition
er o
r its
suc
cess
or r
estr
uctu
red
com
pani
es to
file
the
Bus
ines
s P
lan
and
MY
T ta
riff
petit
ion
for
gene
ratio
n, T
rans
mis
sion
and
dis
trib
utio
n fu
nctio
n se
para
tely
for
the
cont
rol p
erio
d st
artin
g fr
om F
Y 2
013-
14
onw
ards
with
in t
he s
tipul
ated
tim
e.
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 333
10 Generation, Transmission, Wheeling Charges and Open Access Charges
10.1 Generation Tariff
10.1.1 The generation tariff is computed based on the generation ARR and the net
generation approved in para 6.35.3 of the chapter 6 of this tariff order. The approved
generation tariff is given in the table below:
Table 156: Generation Tariff Net generation (MUs) Net
Generation (MU)
Fuel (variable) Costs (Rs.
Crores)
Fixed costs (Rs.
Crores)
Variable cost (paise/ kWh)
Fixed cost / kWh (paise/kWh)
Total cost / KWh (paise/kWh)
279.00 103.52 114.85 371.03 411.64 782.66
10.1.2 Accordingly, the Commission approves generation tar iff of 782.66 paise / kWh
for the FY 2012-13.
10.2 Transmission Tariff
10.2.1 The transmission ARR, as approved in para 6.35.3 of chapter 6 is Rs 167.61 Crores.
The approved transmission tariff is given in the table below:
Table 157: Transmission Tariff (in Paise/kWh)
Sl. Particulars Units Transmission Tariff
1. Total costs of transmission Rs. Crores 167.61
2. Energy available for transmission MU 11,786.29
3. Transmission losses assumed % 4%
4. Energy delivered to distribution MU 11,314.84
5. Transmission tariff (1÷4) Ps./kWh 14.81
10.2.2 Accordingly, the Commission approves transmission t ariff of 14.81 paise/ kWh
for the FY 2012-13 .
10.3 Wheeling Charges
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 334
10.3.1 The distribution ARR as approved in para 6.35.3 of chapter 6 is Rs 6317.62 Cr. The
wheeling charges have been computed on the basis of approved costs of BSEB for
its distribution wire business and the total energy expected to be wheeled through its
distribution network. The distribution cost for maintaining and operating HV network
as per the financial accounts of FY 2010-11 by BSEB is 19.3% of the total cost of
operating and maintaining distribution wires business of BSEB. In the absence of
segregated data on costs of operation of 33 kV and 11 kV networks, it has been
assumed that the two costs are equal. The Commission would revise this assumption
as reliable and concrete data on operating costs (voltage wise) becomes available to
it during review/true up.
10.3.2 The wheeling charges worked out for 33 kV voltage level are given in the table
below:
Table 158: Wheeling charges at 33 kV Voltage Level
Sl. Details Units Approved wheeling Charges
1. Energy input into transmission system MU 11,786
2. Losses in transmission system % 4.00%
3. EHV sales (as approved by the Commission) MU 1,006.06
4. Energy input into 33 kV system [1‐(2+3)] MU 10,308.78
5. Total distribution cost Rs. Cr. 1,135.92
6. Distribution cost for 33 kV voltage levels (assuming 9.81% of item 5) Rs. Cr. 111.46
7. Wheeling charges for 33 kV voltage level (item 6 ÷4) Ps./kWh 10.81
10.3.3 Accordingly, the Commission approves wheeling charges at 10.81 paise/kWh for 33
kV voltage level for the FY 2012-13.
10.3.4 The wheeling charges determined for 11 kV voltage level are as given in table below:
Table 159: Wheeling charges for 11 kV Voltage Level
Sl. Details Units Approved wheeling Charges
1. Energy input into 33 KV system MU 10,308.78
2. Losses in 33 KV % 6%
3. Energy sales in 33 kV system as approved by the Commission MU 872.03
4. Energy input into 11 kV system [1-(2+3)] MU 8,818.22
5. Total distribution cost Rs. Cr. 1,135.92
6. Distribution cost for 11 kV voltage levels (assuming 9.81% of item 5) Rs. Cr. 111.46
7. Wheeling charges for 11 kV voltage level (item 6÷4) Ps./kWh 12.64
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 335
10.3.5 Accordingly, the Commission approves wheeling charges at 12.64 paise/ unit for 11
kV voltage level for the FY 2012-13.
10.4 Open Access Charges
10.4.1 The Commission feels that in the current scenario where energy and peak shortages
are in the range of 50%, the HT consumers should be provided a facilitative open
access framework for procurement of power from sources other than BSEB. For
Open access to become a feasible option for HT consumers open access charges
should be rational so that the cost of delivered power (from sources other than
BSEB) is comparable to retail tariff.
10.4.2 Pursuant to Section 39, 40 and 42 and all other enabling provisions of the Electricity
Act, 2003, the Commission notified the “Terms and Conditions for open access”
Regulations on 20th May 2006. The Commission through these regulations has
introduced open access in phases in Bihar as given below, having regard to
operational constraints, and other relevant factors.
Table 160 : Phase Category of Consumers Open Access to be allowed from
Sl. Phase Category of Consumers Open Access to be allowed from
1. Phase-I Consumers with demand of 15 MW and above 1-Jun-06
2. Phase-II Consumers with demand of 10 MW and above 1-Dec-06
3. Phase-III Consumers with demand of 5 MW and above 1-Dec-07
4. Phase-IV Consumers with demand of 1 MW and above 1-Dec-08
10.4.3 The consumer who seeks open access in accordance with these regulations will
have to pay transmission charges, wheeling charges, cross subsidy surcharge,
additional surcharge and charges to SLDC. The applicability of these charges to any
open access consumer shall be as provided in the regulations for open access. In the
following section all the charges to be paid by consumer seeking open access are
being determined.
Transmission Charge
10.4.4 The Commission has computed the transmission tariff as provided in clause 75 of the
BERC (Terms and conditions for determination of Tariff) Regulations, 2007. The sum
of allocated capacity to all long term transmission customers of the state
transmission system has been taken into consideration. Based on the transmission
cost worked out earlier the approved transmission charge for open access
consumers for the FY 2012-13 is as given in table below:
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 336
Table 161: Transmission Charge
Particulars
Transmission ARR 167.61 (Rs. Crores)
Average transmission capacity (MW) - Allocated capacity to all long term Open Access Customers of the State 2620 MW
Transmission charges for long term open access customers (Rs. /MW/Month)
Transmission ARR ÷ (Average transmission capacity X 12) = 53,310
Transmission charges for short term open access customers (Rs./MW/Day)
Transmission ARR x 0.25) ÷ (Average transmission capacity X 365) = 438.16
10.4.5 The Commission decides that the transmission charges in cash will be Rs. 53,310/
MW/ month or part thereof for long term open access consumers and Rs. 438.16/
MW/ day or part thereof for short term consumers. In addition transmission losses of
4% will be reduced in kind from the energy input (i.e. energy injected at the point of
injection) at the point of delivery.
Wheeling Charges
10.4.6 For the energy input at 33 kV the wheeling charge shall be at 10.81 paise/kWh. In
addition 6% of energy in kind will be deducted from the energy input, towards
assumed losses in 33 kV network.
10.4.7 For energy input at 11 kV the wheeling charges shall be 12.64 paise /kWh. In
addition, 8% of energy in kind will be deducted from the energy input towards
assumed losses in 11 kV network.
Open Access Charges
10.4.8 The Open access charges shall be paid as per the table given below if the injection
and drawl points of the open access customer are at different voltage levels.
Table 162: Open Access Charges Drawl
Injection
Transmission 33 KV 11 KV
Transmission
Transmission Charges plus transmission
losses
Transmission charges plus wheeling charges
of 33 kV. Losses of both transmission and 33 kV network shall be
payable
Transmission Charges plus wheeling charges of 33 and
11 kV network shall be payable. The losses of
transmission, 33 and 11 kV network shall be payable
33 KV
Transmission Charges plus transmission
losses
Wheeling charges of 33 kV plus losses of 33
kV network
Wheeling Charges of 33 and 11 kV network. Losses for 33
and 11 kV shall also be payable
11 KV Transmission Transmission charges Wheeling Charges of 11 kV
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 337
Drawl Injection
Transmission 33 KV 11 KV
Charges plus transmission
losses
and Wheeling Charges of 33 kV. The losses of
transmission and 33 kV network will have to
be borne
plus losses of 11 kV network
SLDC Charges
10.4.9 Open access consumer shall pay all charges payable to the State Load Dispatch
Centre (SLDC), as determined by the Commission under section 32 of the Act and as
per the Regulation 19 (1) of “Terms and Conditions for Open Access” Regulations,
2006 of BERC.
10.4.10 The Annual SLDC and Operating charges for the present have not been determined
separately as till date SLDC is not an independent entity but continues to be a part of
BSEB with no separate accounts. The Commission believes that expenses incurred
by the SLDC are a part of the transmission expenses of BSEB. The Commission has
determined the revenue requirement for transmission function of BSEB and
consequently the revenue requirement of SLDC are a part of the revenue
requirement of the transmission function. Charges payable to SLDC are a part of the
transmission charges determined by the Commission. Till the time separate accounts
are established by BSEB for SLDC these charges shall continue to be determined as
a part of the Transmission Charges of BSEB.
Cross Subsidy Surcharge
10.4.11 The open access consumers are liable to pay cross subsidy surcharge to
compensate the distribution utility for any loss of revenue due to shifting of its
consumer to the open access system. The cross subsidy surcharge for open access
consumers for the year 2012-13 is calculated as per the following recommended
formula in the Tariff Policy.
S = T – [C (1+L/100) +D]
Where,
S = Surcharge
T = Tariff payable by the relevant category of consumers
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 338
C = Weighted average cost of power purchase of top 5% at the margin excluding
liquid fuel based generation and renewable power.
D = Wheeling charges (Transmission and Distribution)
L = System losses for the applicable voltage level, expressed as a percentage.
10.4.12 The cross subsidy surcharge determined as per the above formula is as follows:
For 132 kV consumers = 120.68 Ps./kWh.
For 33 kV consumers (other than HTSS) = 107 Ps./kWh.
For 11 kV consumers (other than HTSS) = 103.43 Ps./kWh
For HTSS consumers 33 kV = 0 Ps./kWh
11 kV = 0 Ps./kWh
10.4.13 As indicated earlier the Commission in view of the prevailing power shortages in the
state would like HT consumers to seek power purchase options from sources outside
the state. The Commission in order to make the cost of delivered power comparable
with the retail tariff approves the following cross subsidy surcharge for FY 2012-13 as
determined by the Commission in its tariff order for FY2011-12.
For 132 kV consumers = 60 Ps./kWh.
For 33 kV consumers (other than HTSS) = 54 Ps./kWh.
For 11 kV consumers (other than HTSS) = 52 Ps./kWh
For HTSS consumers 33 kV = 0 Ps./kWh
11 kV = 0 Ps./kWh
Additional Surcharge
10.4.14 The Commission is not in favour of levy of any additional surcharge, in the absence
of the necessary data. The same shall be leviable only if it is conclusively
demonstrated by BSEB that open access will lead to stranding of its fixed cost. BSEB
should indicate the quantum of such stranded cost and the period over which it would
be stranded for determination of additional surcharge.
Reactive Energy charges
10.4.15 The open access consumers should pay a reactive energy charge to BSEB, for
drawal / injection of reactive energy. The Commission in its last tariff order had
directed BSEB to conduct a study to determine the reactive energy charge and
submit a proposal in the next tariff application. However BSEB has not submitted any
such proposal and till the time BSEB submits a proposal in this regard, the reactive
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 339
drawal shall continue to be charged at 04 paise/kVAR as determined by the
Commission in its tariff order for FY2011-12.
Information to be put on the web site
10.4.16 The Commission directs BSEB to put all information related to open access
facilities/charges on its web site. The information should include open access
regulations, procedure for obtaining open access and details of all charges payable
by an open access consumer
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 340
11 Renewable Purchase Obligation
11.1 Background
11.1.1 Renewable Energy (RE) from co‐generation and from biomass plants has a potential
of more than 800 MW in the state of Bihar which can be tapped as a viable option for
decentralized power generation within a short gestation period. Generation using
bagasse and biomass such as rice husk, paddy straws, corn cobs/other biomass
sources has the potential to enhance availability of power and provide employment in
rural areas. Large number of biomass projects exceeding 500 kW has been cleared
by State Investment Promotion Board (SIPB) which can be installed with favourable
Renewable Energy Policy of the State Govt. There are several success stories of
village electrification, including power for agricultural and lighting purposes and this
need to be replicated. Bihar is also favorably placed for harnessing solar power on
decentralized basis. This immense potential in the state can be utilised for meeting
its power requirement, particularly in rural areas. Solar Photo Voltic (SPV)
programme is very popular in the state and there is need to lure private investors to
take up larger projects in the state.
11.2 Renewable Purchase Obligations (RPO)
11.2.1 The Renewable Purchase Obligations (RPOs) ensure that the obligated entities
procure a certain minimum percentage of their total power requirement from
renewable energy sources. The followings are some of the key regulatory & policy
provisions related to RPO:
The Electricity Act’ 2003
As per Section 86(1) (e) “The State Commission shall discharge the following
functions namely: “Promote co-generation and generation of electricity from
renewable sources of energy by providing suitable measures for connectivity with the
grid and sale of electricity to any person and also specify, for purchase of electricity
from such sources, a percentage of the total consumption of electricity in the area of
a distribution licensee;”
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 341
National Electricity Policy
As per Section 5.12.1 and 5.12.2“Non-conventional sources of energy being the most
environment friendly there is an urgent need to promote generation of electricity
based on such sources of energy. For this purpose, efforts need to be made to
reduce the capital cost of projects based on non-conventional and renewable
sources of energy. Cost of energy can also be reduced by promoting competition
within such projects. At the same time, adequate promotional measures would also
have to be taken for development of technologies and a sustained growth of these
sources
As per Section 5.12.2”The Electricity Act 2003 provides that co-generation and
generation of electricity from non-conventional sources would be promoted by the
SERCs by providing suitable measures for connectivity with grid and sale of
electricity to any person and also by specifying, for purchase of electricity from such
sources, a percentage of the total consumption of electricity in the area of a
distribution licensee. Such percentage for purchase of power from non-conventional
sources should be made applicable for the tariffs to be determined by the SERCs at
the earliest. Progressively the share of electricity from non-conventional sources
would need to be increased as prescribed by State Electricity Regulatory
Commissions. Such purchase by distribution companies shall be through competitive
bidding process. Considering the fact that it will take some time before non-
conventional technologies compete, in terms of cost, with conventional sources, the
Commission may determine an appropriate differential in prices to promote these
technologies”
Tariff Policy
As per Section 6.4 (1) “Pursuant to provisions of section 86(1)(e) of the Act, the
Appropriate Commission shall fix a minimum percentage for purchase of energy from
such sources taking into account availability of such resources in the region and its
impact on retail tariffs. Such percentage for purchase of energy should be made
applicable for the tariffs to be determined by the SERCs latest by April 1, 2006”
National action plan on Climate Change (NAPCC)
“Renewable Purchase Obligation target of 5% at national level for 2010 with annual
increase in trajectory over long term so as to reach around 15% RPO target by 2020”
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 342
11.2.2 The RPO targets have been defined by a number of states in the form of Solar RPO
and non-solar RPO targets for obligated entities (Distribution licensee, captive
consumer, open access consumer).
11.2.3 After the enactment of Electricity Act 2003, several States have issued the RPO but
still a number of barriers were being faced in the effective implementation of RPO.
Some of the issues are lack of compliance in a number of states due to low installed
capacity; compliance met & obligated entities not willing to procure more electricity
from renewable energy sources, high transaction cost to meet RPO compliance for
small capacity open access and captive consumers.
11.3 Renewable energy Policy
11.3.1 The Govt. of Bihar (GoB) had issued policy guidelines for increasing private sector
participation for developing Non-conventional energy sources in 2003 which was
applicable for five years. Keeping in the view that the potential for the renewable is
yet to be harnessed the Govt. of Bihar has issued revised policy for the promotion of
power generation from renewable energy sources in June 2011 vide Letter No-Pra
02/Breda Apra Niti-11/08/2845 dated 24/6/2011.
11.3.2 The revised policy is applicable for the development of all form of renewable energy
resources. The responsibility for the development of biomass biogas based projects,
cogeneration projects wind power projects municipal solid waste based projects
remains with the Bihar Renewable Energy Development Agency (BREDA), the state
nodal agency for the development of renewable energy generation programs & for
the development of micro/mini/small hydel plants (up to 25 MW) the responsibility
remains with the Bihar State Hydroelectric Power Corporation.
11.3.3 The revised policy 2011 has issued guidelines on the key issues stated as follow:
a) Project Approval process & role of institutional authorities
b) Regarding the sale of power to the BSEB, wheeling of power for third party
sale or captive use;
c) Project monitoring and activity milestones;
d) Incentives /applicability e.g. applicability of policies notified by the state and
central Govt. from time to time, incentives under prevalent industrial incentive
BERC TARIFF ORDER FOR FY 2012-13
Bihar Electricity Regulatory Commission Page 343
policy of the GoB and also such similar applicable policies, exemption from
electricity duty and entry tax;
e) Special concession for the sustainability of the biomass based projects that no
two biomass based projects in an area of radial distance of 25 km to ensure
the availability of biomass;
f) Regarding the Renewable Energy Purchase Obligation, the policy has
emphasized that the BSEB or the distribution licensee should purchase more
power from renewable resources than the minimum prescribed by the BERC
with the approval from the Government at tariff approved by the BERC.
11.4 BERC (Renewable Purchase Obligation, its Compl iance and REC Framework
Implementation) Regulations, 2010
11.4.1 The Commission has notified BERC (Renewable Purchase Obligation, its
Compliance and REC Framework Implementation) Regulations, 2010 on 16th
November, 2010; Clause 4(1) of the regulation states that
“Every obligated entity shall purchase not less than 1.5%, 2.5%, 4%, 4.5% and 5% of
its total energy consumption (total energy input minus T&D losses) during 2010-11,
2011-12, 2012-13, 2013-14 and 2014-15 respectively from renewable energy
sources under the Renewable Purchase Obligation or until reviewed by the
Commission.
Provided that 0.25% out of the renewable purchase obligation so specified in the
year 2010-11 shall be procured from generation based on solar as renewable energy
source and shall be increased at a rate of 0.25% every year thereafter till 2014-15 or
until reviewed by the Commission.”
11.4.2 To promote solar energy projects for generation and sale of electricity from solar
projects to distribution licensee within the State of Bihar, the Commission has notified
BERC (Terms and Conditions for tariff determination from Solar Energy Sources)
Regulations, 2010 on 2nd August 2010.
11.4.3 Based on the above mentioned regulations it was made obligatory for BSEB to
purchase certain percentage of energy of their total energy consumption from
Renewable Energy sources, as stated below:
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Bihar Electricity Regulatory Commission Page 344
Table 163: Renewable Purchase obligation for BSEB
From Renewable Sources FY 2010-11
FY 2011-12
FY 2012-13
FY 2013-14
FY 2014-15
Renewable Purchase Obligation (RPO)
1.5% 2.5% 4% 4.5% 5.0%
% Share of solar power in RPO 0.25% 0.5% 0.75% 1.0% 1.25%
Net Solar power purchase obligation as a % of total power purchase from all sources
0.00375% 0.0125% 0.03% 0.045% 0.0625%
11.5 Co-generation and Captive Power Policy
11.5.1 Bihar does not have any specific policy for Co-generation & Captive Power Policy.
However, BERC issued order for determination of tariff for purchase of electricity by
the BSEB from biomass based power plant and bagasse based cogeneration plant in
the State of Bihar in suo motu proceeding No. 2008 vide order dated 21st May 2009.
The Commission redetermined the same vide order dated 29.06.2010. In FY 2008 &
FY 2009 BSEB has received 2.32 MU & 13.11 MU resp. from the cogeneration
plants. BSEB has executed PPA with some sugar mills to purchase the power as
detailed in the table below:
Table 164: Co-generation Plants in Bihar
Sl. Name of the Sugar mill (Co-generation plant)
Agreement of Power Supply (in MW) Status as on FY 2009-10 Season Off Season
1. New Swadeshi Sugar Mill 5 8 In operation
2. Bharat Sugar Mill 10 13 In operation
3. JHV Distilleries & Sugar Mills 14.54 18.05
4. Hashan Sugar mills 5 8
11.6 Renewable Potential
11.6.1 The state has huge potential for development of renewable energy resources.
Following table shows the potential & installed capacity for the different technologies.
Table 165: Technology wise potential & installed ca pacity in Bihar
Sl. Technology Potential (in MW) Installed capacity as on Mar’11 (in MW)
1. Small Hydro (irrigation canal & small stream) 195 MW (identified) 52.8
2. Bio mass (Gasifier system) 200 MW (estimated) 1.53 (as on Jun’07)
3. Co-generation ( Bagasse based) 85 MW 47.05
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11.6.2 The State has huge potential for the development of mini or micro hydro projects
specially at Gadak canal system, Sone canal system, Tilabeh Dhar, Khardaha Dhar
and Parwana Dhar sites. Out of 92 potential sites identified for hydro power
development the detailed survey & investigation work has been completed for 42
sites4 till 2007.
11.6.3 In Bihar, it is estimated that the rice husk, the agricultural residue about 22 lakhs of
tonne is produced every year which is sufficient to install a capacity of 200 MW in a
decentralized manner. More than 4000 medium & small sized rice mills are operating
in Bihar most of which runs on grid supply & diesel in the absence of grid power. As
on June 2007, biomass gasifier systems worth 1.53 MW of capacity are installed in
rice mills & other industries.
11.6.4 It was estimated by the MITCON, Pune in 1999 that the potential worth 85 MW5 is
possible to be exploited from the 7 major sugar mills in the Bihar. As on 2009-10, the
capacity worth 47.056 MW is installed at some of the sugar mills.
11.6.5 So far in Bihar, no major development has happened for exploitation of the wind
energy.
11.7 Power purchase by BSEB under Renewable Purchas e Obligations (RPO)
11.7.1 Purchase of power from BSHPC and Co-generation plants by the BSEB have been
considered towards the fulfilment of RE purchase obligations and accordingly RE
purchase from other sources have been considered.
11.7.2 The total power purchase quantum and its cost from renewable energy source
approved by the Commission for FY 2011-12 and FY 2012-13 is given in the table
below:
Table 166: Details of Power Purchase from Renewable Source (MU) by BSEB
From Renewable Sources FY 2010-11 FY 2011-12 (Projected)
FY 2012-13 (Projected)
RE Purchase Solar - 1.0 3.0
Co-Generation NSSM (New Swadeshi Sugar Mill) 28.35 114.0 275.0
B.S.H.P.C. 27.37 30.0 30.0
Total power purchase from Renewable Sources 55.72 145.0 308.8
4,2 Source: “Road Map for the power sector development in Bihar”, July 2007, report of the special task force on Bihar , Govt. of India 6 Tariff Order for the FY 2010-11
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From Renewable Sources FY 2010-11 FY 2011-12 (Projected)
FY 2012-13 (Projected)
Total Power purchase from all sources 10,978 11,931 14,142
T&D losses (%) 32.0% 29.0% 27.5%
Energy consumption (energy input minus T&D losses) 7465.04 8471.01 10252.95
Renewable Purchase Obligation (RPO) achieved/ proposed 0.75% 1.71% 3.0%
% Share of solar power in RPO - 0.69% 0.97%
Net Solar power purchase obligation as a % of total power purchase from all sources - 0.012% 0.029%
11.7.3 The Currents status of power purchase from renewable sources it appears that a lot
need to be done by the BSEB in order to comply with the BERC (Renewable
Purchase Obligation, its Compliance and REC Framework Implementation)
Regulations, 2010. However, BSEB in its current tariff petition for FY 2012-13 has
indicated that they are in advance stage of signing PPA with few private developers
for generation of power through renewable sources.
11.8 Bihar Renewable Energy Development Agency (BRE DA)
11.8.1 As per BERC (RPO) regulations, 2010
“6.1 The Commission shall designate an agency as the State Agency for
accreditation and recommending the renewable energy projects for registration and
to undertake functions under these regulations.
6.2 The State Agency shall function in accordance with the directions issued by the
Commission and shall act in consistent with the procedures/rules laid by Central
Agency for discharge of its functions under the Central Electricity Regulatory
Commission (Terms and Conditions for recognition and issuance of Renewable
Energy Certificate for Renewable Energy Generation) Regulations, 2010.
6.3 The State Agency shall submit quarterly status to the Commission in respect of
compliance of renewable purchase obligation by the obligated entities in the format
as stipulated by the Commission and may suggest appropriate action to the
Commission if required for compliance of the renewable purchase obligation.”
11.8.2 Bihar Renewable Energy Development Agency (BREDA) has been established to
promote development of schemes of non- conventional energy sources. BREDA has
been implementing programme of non-conventional energy sources for schemes are
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bio-gas development, SPV systems of Lanterns/Home lighting systems/street lighting
systems, and wind mills. Under the Border Area Development Programme, BREDA
has implemented a scheme of solar street lighting system in 40 villages along the
International Border in the Bihar.
11.8.3 In pursuance of the Rule 6 of BERC (Renewable Purchase Obligation, its
Compliance and REC Framework Implementation) Regulations, 2010 the Bihar
Electricity Regulatory Commission has designated Bihar Renewable Energy
Development Agency (BREDA) as "State Agency" for accreditation and
recommending the renewably energy projects for registration and to undertake
functions as specified in the Regulation
11.8.4 Thus, BSEB shall endeavor to procure and supply the power from New and
Renewable Energy Sources, more than the minimum percentage prescribed under
the RPO obligations by the Commission. Due grid strengthening and up gradation in
the transmission & distribution system shall be undertaken by BSEB to the extent of
power procured by BSEB Licensee from respective New and Renewable Energy
Project.
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12 Annexures
12.1 Annexure – I: State Advisory Committee
12.1.1 The meeting of the State Advisory Committee has been convened in the court room
of the Commission at 11.30 A.M. on 23rd December, 2011. Shri U.N.Panjiar I.A.S.
(Retd), Chairperson of the Bihar Electricity Regulatory Commission presided over the
meeting. The detail list of members present during the meeting is as below:
Table 167: Members present during the SAC meeting Sl. Name of member Organization Designation
1. Shri Umesh Narayan Panjiar BERC Chairman
2. Shri Ajay Nayak Energy Dept., GoB Principal Secretary
3. Shri Shambhunath Mishra Energy Dept.,GoB Jt. Secretary
4. Shri S. C. Jha BERC Member
5. Shri R.N.Sharma BERC Member
6. Shri L. Prasad BSEB Member (Generation)
7. Shri T. T. Jha BSEB Member (Transmission)
8. Shri V. C. Gupta BSEB Member (Finance)
9. Shri Rana Awadesh BSEB Member (Administration)
10. Shri A.K. Pandey BSHPC MD (BHPC)
11. Shri Manish Kumar BREDA Director
12. Shri S.K. Patawari BIA Chairman, Energy Sub Committee
13. Shri R K Mediratta IEX Sr. V.P
14. Shri U.K. Poddar BIA Power Sub Committee
15. Shri K.P.S. Keshri BIA President
16. Shri Sanjay Bhartiya BCC Chairman
17. Shri Sanjeev Chaudhary BSMA Secretary
18. Shri Prabhu Dayal Bhartiya BSMA President
19. Shri Shaibal Gupta ADRI Member, Secretary
20. Shri Prabhat Kumar East Central Railway Sr. S.E.
21. Shri Rajesh Kumar East Central Railway Sr. DEE
22. Shri S.K. Singh BSEB C.E. (Commercial)
23. Shri L.N. Choudhary BSEB EEE (Tariff)
24. Shri Rakesh BSEB EEE
25. Shri Jayant Kumar Dubey BSEB AEE (Tariff)
26. Shri Nand Sharma BERC Consultant, BERC
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Sl. Name of member Organization Designation
27. Shri Naresh Desai Meghraj Consultant, BSEB
28. Shri Vivek Mishra Meghraj Consultant, BSEB
29. Shri Pramod Kumar Sinha Deloitte, Gurgaon Consultant, BERC
30. Shri Ankur Satija Deloitte, Gurgaon Consultant, BERC
12.1.2 In accordance with Section 181 read with Section 87 of the Electricity Act, 2003, the
Commission has constituted a State Advisory Committee (SAC). The Chairman
welcomed the members present and stated that as indicated in the Agenda Notes
sent with the notice for the meeting, the main agenda of the day is to discuss the
tariff petition proposed by the Bihar State Electricity Board for the year FY 2012-13,
which had been published newspaper and uploaded on the website of BSEB in
accordance with the provisions of the Electricity Act’ 2003, inviting comments/
suggestions on the tariff petition of the BSEB.
12.1.3 The Chairman stated that generally the State Advisory Committee (SAC) meeting
has been held to discuss the tariff petition but he considered it necessary to hold
such discussion periodically, to enable the members of the State Advisory Committee
to have opportunities to offer views as they may have on the matters. The Chairman
assured that the SAC meeting will take place frequently from now onward to discuss
the other issues related to supply and distribution of electricity in Bihar. Further, the
chairman also said to have next SAC meeting sometime around the month of April
2012.
12.1.4 The Chairman than summarised the salient points of ARR and tariff petition for FY
2012-13. It was stated by the Chairman that the approved ARR for FY 2011-12 is Rs
4706 Cr. against which the Board has now proposed to Rs 6253 Cr. for FY 2011-12
as revised estimate, with is an increase of Rs 1547 Cr. The Board has projected the
ARR of Rs 7898 Cr. for FY 2012-13 and BSEB has proposed for recovery of revenue
gap of past year on the true up exercise amounting to Rs 5033 Cr. Thus BSEB has
projected an ARR which is almost 2.5 times the approved ARR for FY 2011-12. The
major portion of the ARR is on account of true up portion of the past years.
12.1.5 The Chairman stated that the average tariff per unit proposed by the Board for the
year FY 2012-13 is Rs 6.37 per unit against the current approved tariff of Rs 4.06 per
unit.
12.1.6 The Chairman told during the meeting that IEX has sent the communication to the
Commission to discuss the recent letter by Ministry of Power dated 30th November
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2011 regarding the provision of mandatory Open Access to consumers requiring
power of 1 MW or above and the opinion of Learned Attorney General of India. He
stated that the same communication by IEX has already been circulated to member
of the SAC.
12.1.7 While discussing the implication of the MoP letter the Chairman stated that as per the
opinion of Attorney General, the Commission can’t determine the tariff for consumer
getting power of 1 MW or above. Such consumer will be mandatorily provided Open
Access by the distribution licensee. Such Consumers can purchase power from any
source. If these consumers choose to purchase the power from the Board then they
will be governed by Section 49 of the Electricity Act’ 2003 which means that
consumers will have to enter into separate agreement with Board for supply of
electricity and Commission will not fix their tariff.
12.1.8 The Chairman also mentioned that the State Government vide letter no. 4208 dated
19-09-2011 has issued a clarification that the financial assistance given by the Bihar
Government to the Board in the form of resource gap of Rs 1080 Cr. with funds being
used for compensating the financial loss caused by the difference between actual
T&D loss and T&D loss determined by the Commission. The remaining amount will
be used for subsidizing the rural and agriculture consumers. As per the letter the
same treatment is also applicable to the resource gap assistance given in the past.
12.1.9 In response to that Principal Secretary, Energy Department, Bihar stated that they
have already initiated the discussion on the matter with concerned Government
officials and assured that the Government will revert back soon on this issue.
12.1.10 The Chairman also stated that true up exercise of the year from FY 2006-07 to FY
2008-09 has been completed and the order will be available in the month of January
2012.
12.1.11 Thereafter, audio visual presentation was made by Chief Engineer (Commercial) of
the BSEB on the salient features of ARR and tariff petition filed by the Board for
FY2012-13. The Chairman then called upon the other Members to make their
comments / suggestions.
Participating in the deliberations of the SAC, the Members raised the following issues.
12.1.12 Terminal benefits: During the meeting the Chairman, BERC has asked for the
clarification on the accounting principle followed by the Board for terminal benefit of
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its employees. Member (Finance), BSEB assured to provide the clarification on the
same and stated that the Board is following the Account Rules 1985 notified by the
Central Government.
12.1.13 Regulatory assets: The Chairman stated that the Board has indicated a huge
revenue gap of Rs 6705.57 Cr. during FY 2012-13. The Chairman asked ‘Is it proper
to pass on such revenue gap to the consumer? In this context Chairman SAC
directed the Board to furnish the information related to the practice followed by
different state regulatory Commission on treatment of regulatory assets in the past to
the Commission within next fifteen days.
12.1.14 Load factor for Railway Traction Service (RTS): The Board has been also asked for
clarification regarding the purpose of fixation of load factor for consumers like
Railways for the process of tariff determination. In this regard, the representative
from Eastern Central Railway stated that it is very difficult to maintain the constant
level of Load factor round the clock as it depends upon the frequency of the trains
commuting in the particular route. Further, he suggested the SAC to maintain the
same level of Load Factor as issued by the BERC in its previous Tariff Order for FY
2011-12.
12.1.15 Renewable Purchase Obligation: A detailed discussion took place during the meeting
on the Renewable Purchase Obligation of the Board. It has been pointed out that the
proposed power purchase through renewable source as proposed by the Board in its
tariff petition for FY 2012-13 is not as per Renewable Purchase Obligations, its
Compliance and REC Framework Implementation Regulations, 2010. The Chairman
of the Commission assured that this will be looked into and the RPO shall be
complied as per regulation.
12.1.16 Minimum Monthly Charge: During the meeting the matter related to recovery of fixed
tariff and the Fixed cost of the Board has been discussed where the Member
(Finance) of the Board was of the opinion that the Fixed charge component of the
tariff is not adequate to recover the fixed cost of the Board due to which MMC has
been proposed in the ARR petition for FY 2012-13. The other members of the SAC
have suggested that the MMC should be phased out from the tariff as in the absence
of guaranteed minimum supply hours there is no significance of MMC. The practice
in the other states on MMC has also been discussed during the meeting.
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12.1.17 Reduction of Cross-subsidy surcharge: The representative from Bihar Industries
Association raised the issue of cross subsidy surcharge citing the example of
Judgment of Hon’ble APTEL dated Sep 2011 and advised the committee to compute
the Voltage wise Cost of supply for determination of cross subsidy surcharge for all
consumer category in general and for Industrial consumers in particular. The member
of SAC has also talked about the range of cross subsidy surcharge and wheeling
charge in the different states. It has also been suggested by the representative of BIA
that the cross subsidy surcharge may be waived off for the consumers buying power
through open access in case of non-availability of power with the state electricity
Board. The member of the SAC has also raised the issue of higher growth in no. of
subsidized consumers as compared to subsidizing consumers and its impact on
cross-subsidy.
12.1.18 Tariff should be comparative to other state/ Consideration in tariff for NDS-III
category: Representative from ADRI suggested that the tariff rate should be fixed
taking into consideration of the tariff rates of other states and should be comparable
with that. He also suggested that as a part of civic society due consideration should
be given to the NDS-III category (tariff meant for temple etc) while determining the
tariff of the Board. He has also suggested for providing un-interrupted power supply
to Patliputra Industrial areas consumers, where supply are erratic.
12.1.19 The representative of the Bihar Chamber of Commerce has advised that the
“Construction Power” category may also be introduced for LT consumers as well.
12.1.20 Participation of different consumer group in the public hearing process: The
Chairman, BERC on the matter of tariff fixation exercise has welcomed the active
participation from different consumer groups, and also invited them to participate in
the forthcoming public hearing on the tariff petition of BSEB for FY 2012-13. As per
the BERC the larger participation of the consumer groups in the public hearing
process shall reveal the performance standard maintained by the Board vis-a vis
performance standard set by the BERC in Standards of Performance of Distribution
Licensee Regulations, 2006.
12.1.21 Proposed tariff hike by the Board: The representative from Bihar Industries
Association (BIA) has also pointed out that the tariff hike as proposed by the Board
for FY 2012-13 are around 50%, whereas the supply hours are not adequate, and
Minimum Charge has been proposed. The representative of BSMA stated that the
tariff of Induction Furnace should be comparable with other states. The demand
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charges proposed by the Board are too high. There should not be any MMC
Charges.
12.1.22 Non-achievement of T&D loss target by the Board; A detailed discussion took place
on the issue of non-achievement of T&D loss targets by the Board, the member of
the SAC advised the Board to take immediate steps for reducing the T&D loss of the
Board so as to meet the T&D loss target as set by the BERC. The representative of
Bihar Industries Association (BIA), Bihar Chamber of Commerce (BCC), Bihar Steel
Manufacture association (BSMA) and others stated that the target fixed by the BERC
should not be changed.
12.1.23 Electricity Supply code and tariff proposal for FY 2012-13: The member of the SAC
also indicated the instances in the tariff petition for FY 2012-13 where the Board has
proposed the changes in charges such as Development charge, security deposit, and
charges for Tatkal Connection etc. most of which has already been specified in the
Electricity Supply Code. The member of SAC suggested that such points should be
dealt in while amending the Electricity Supply Code for which separate public hearing
may be organized. Regarding development charges and Tatkal Charges it has been
pointed out by the representative of the BIA that the Board is obliged to supply power
under Section 43 of the Electricity Act’ 2003 and therefore changing of Development
charges or Tatkal Charges is not justified and proper.
12.1.24 Intra-state Open Access: One of the members of the SAC was of the opinion of
introducing Intra-state open access in the state of Bihar for consumer with load in the
range of 100 kW to 1 MW.
12.1.25 Metering status: The members of the SAC are of the opinion that the Board should
achieve 100% metering status and there should not be any instances of un-metered
supply.
12.1.26 Resource Gap grant of the State Government: The representative of the BIA stated
that the resource Gap grant has been provided to purchase Power from NTPC and
the same has been treated as revenue receipt and it should to be continued in future
also. Any change will result in higher rate of tariff.
12.1.27 FPPCA: The member of the SAC has also commented on the additional burden on
the consumers through FPPCA.
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12.1.28 The Chairman placed on record his profound gratitude to the Members present, for
their valuable suggestions and submissions and assured that these would be kept in
view, while finalizing the Tariff for the year 2012-13.
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12.2 Annexure - II: List of Participant during the Public hearing.
Sl. Name and address of Participants
Participants present during the Public hearing at D arbhanga on 15 th February 2012
1. Sri Pawan Kr. Sureka - Chamber of Commerce & Industries
2. Sri Prakash Lal Poddar - Divisional Chamber of Commerce & Industries
3. Sri Vijay Kumar Bairoliya - Divisional Chamber of Commerce & Industries
4. Sri Sushil Kumar Jain - Divisional Chamber of Commerce & Industries
5. Sri Sunil Kumar Singh - Divisional Chamber of Commerce & Industries
6. Sri Rintu Kr. Jha - Gramin Vikash Association
7. Sri Shatrughan Jha - Dy. President, JD (U)
8. Prof. Pramod Kr. Sharma - ESCRP
9. Sri Prabodh Singh - Y.I.C.C., Darbhanga
10. Sri Binod Kr. Pansari – MICC
11. Sri Ajay Kr. Jalan -Ex. Mahapaur
12. Sri Gyaneshwar Prasad - Industry Chamber
13. Sri Bhola Bhandari – Individual
14. Sri Animesh Kr. Jha – Individual
15. Sri Kedar Nath Jha – Individual
16. Sri Ehtashamur Rahman - Individual
17. Sri Viveka Nand Thakur – Individual
18. Sri Arun Kumar – Individual
19. Sri Ghulam Ahmad Nazir – Individual
B.E.R.C. Representatives
1. Sri Lakshman Bhakta - Dy. Secretary, BERC
2. Sri Amit Kumar Laha – BERC
3. Sri Nand Sharma - Consultant, BERC
4. Sri Ankur Satija – Deloitte (Consultant, BERC)
B.S.E.B. Representatives
1. Sri Satish Kumar Singh - C.E, (Commercial), BSEB
2. Sri Vijay Kumar - FC II (F&A), BSEB, Patna
3. Sri D. N. Tiwari - G.M cum C.E, Darbhanga
4. Sri K. N. Jha - DGM cum ESE MESA
5. Sri J. K. Dubey - AEE (Tariff)
6. Sri B. K. Mishra - ESE, Darbhanga
7. Sri Amiya Shankar -DDA, MESA, Darbhanga
8. Sri Sudarshan Ram - EEE/Revenue & Commercial, Darbhanga
9. Sri Pradeep Kr. Jha - EEE, Madhubani
10. Sri Ram Babu Bhatti - EEE/Jhanjharpur
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Sl. Name and address of Participants
11. Sri R. K. P Chaudhary - EEE/ Darbhanga (Rural)
12. Sri K. K. Singh - EEE/Darbhanga (Urban)
13. Sri D. N. Sinha - Acct. BSEB, Mithila Area Board
14. Sri Naresh Desai – Meghraj, (Consultant, BSEB)
Participants present during the Public hearing at B hagalpur on 23 rd February 2012
1. Sri Gautam Suman - Chairman, Ang Uthanodolan Samiti
2. Dr. Jayant Jalad - Kendriya Mahaschiv, Ang Uthanodolan Samiti
3. Sri Gautam Banerjee - Co-ordination Committee
4. Sri Prakash Chandra Mishra - Danik Jagran
5. Sri Amar Nath Modi - Human Rights
6. Sri Santosh Kumar - Chairman, Sarvodya Samajik Sanstha, Sahebganj
7. Sri Prakash Chandra Mishra - Swami Vivekanand Samiti, Bhagalpur
8. Sri Jawahar Pd. Mandal -Sampoorna Kranti Aandolankari Manch
9. Sri M.D. Usman - Gen. Sec. RJD
10. Sri Rajesh Singh - Danik Jagran
11. Sri Mukutdhari Agrawal - President, EBK
12. Sri Sudhir Kr. Das - SVS, Bhagalpur
13. Sri Mukesh Kr. Das - Ghositos Girls High School
14. Sri Shashi Shankar Rai - Member, Anusharavan Samiti, Aapurti Anumandal
15. Sri Alok Verma - ETV Bihar/Jharkhand News
16. Sri Abha Kumar - F.M.T News
17. Sri Sandeep Jha - D.B.A, Bhagalpur
18. Sri K. K. Dubey - D.B.A, Bhagalpur
19. Sri Prakash Chandra Gupta – Individual
20. Sri S. K. Dwama – Individual
21. Sri R. K. Baid – Individual
22. Sri Lakhan Lal Prasad - Individual
23. Sri Jata Shankar Tiwari – Individual
24. Sri Mahesh Pd. Gupta – Individual
25. Md. Hemayat Ansari – Individual
26. Nasim Ansari - Individual
27. Sri Gotam Gupta – Individual
28. Sri Bhawani Lal – Individual
29. Sri Birendra Kumar – Individual
B.E.R.C. Representatives
1. Sri Lakshman Bhakta - Dy. Secretary, BERC
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Sl. Name and address of Participants
2. Sri Amit Kumar Laha - BERC
3. Sri Nand Sharma - Consultant, BERC
4. Sri Ankur Satija – Deloitte (Consultant, BERC)
B.S.E.B. Representatives
1. Sri Satish Kumar Singh - C.E, Commercial, BSEB
2. Sri N. K. Jha - Director (Expenditure), BSEB
3. Sri Rajendra Pandey - ESE, Bhagalpur
4. Sri D. K. Shastri - DDA (Incharge)
5. Sri Suresh Prasad - EEE, Banka
6. Sri R.N. Singh - EEE/BGP/UR
7. Sri K. N. Singh - G.M cum CE, Bhagalpur
8. Sri Gopal Kumar - APO/ESC/Bhagalpur
9. Sri Suresh Prasad Mandal - AEE (APT-1) BSEB, Bhagalpur
10. Sri Bijay Kr. Sinha -Reporter, Sadhna News
11. Sri Ramanand Gupta – Individual
12. Sri Naresh Desai – Meghraj (Consultant, BSEB)
Participants present during the Public hearing at P urnea on 24 th February 2012
1. Sri S.K. Ghosh, G.M. Jute Park, Purnia
2. Sri R. C. Mishra – Vice President Chamber of Commerce.
3. Sri Pankaj Nayak - Pankaj International
4. Sri Bimal Singh Bengani - President, North Eastern Chamber of Commerce, Katihar
5. Sri Nirmal Kishore Jha - G. M. , D.I.C, Purnea
6. Sri Nilammber Agrawal - Sri Sri Cold Storage, Purnea
7. Sri R. K. Pathak - ETV Office, Purnea
8. Sri Mahesh Paswan - Bihar Bikash Morcha, Purnea
9. Sri OM Polymers – BIADA
10. Sri Manish Kumar Jha – BIADA
11. Sri Ashish Singh – BIADA
12. Sri Vikram Kr. Singh – BIADA
13. Sri Nilesh Kr. Agrawal – BIADA
14. Sri Satish Chandra Jha – Individual
15. Sri Subhash Kumar – Individual
16. Sri Rajesh Patwari - Individual
17. Sri Anil Chamaria – Individual
18. Sri Manoj Thakur – Individual
19. Sri Rameshwar Prasad – Individual
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Sl. Name and address of Participants
20. Sri Anant Bharti – Individual
21. Sri Rakesh Kr. Singh – Individual
22. Sri Bharat Bhagat – Individual
23. Sri Kanhaiya Choudhary – Individual
24. Sri Bupendra Nr. Singh – Individual
B.E.R.C. Representatives
1. Sri Lakshman Bhakta - Dy. Secretary, BERC
2. Sri Amit Kumar Laha - BERC
3. Sri Nand Sharma - Consultant, BERC
4. Sri Ankur Satija – Deloitte (Consultant, BERC)
B.S.E.B. Representatives
1. Sri Satish Kumar Singh - C.E, Commercial, BSEB
2. Sri N. K. Jha - Director (Expenditure), BSEB
3. Sri Ram Chandra Singh – DGM cum ESE, KESA
4. Sri Naresh Desai – Meghraj (Consultant, BSEB)
Participants present during the Public hearing at G aya on 27 th February 2012
1. Kiran Lama - Daiokyo Budhist, Gaya
2. N. Lobsay -Bodhgaya Temple
3. Sri Manoj Kumar - Daiokyo Temple, BodhGaya
4. Sri Beelesh Yadav - Japanese Temple
5. Sri Arbind Kumar - President, Bihar Ind. Assoc.
6. Sri Kaushlendra Pratap - Central Bihar Chamber of Commerce, Gaya
7. Sri Brijnandan Pathak -Vidyut Upbhokta Sangharsh Samiti, Gurudwara Road, Gaya
8. Sri Ramanuj Pd. Singh -Chairman, Prafudh Wagnik Munch, Gaya
9. Sri Pena Chand - Sheelan Monastery
10. Sri Arun Kumar - ETV Reporter
11. Sri R. S. Nagraj – BJP
12. Sri Prem Narain - Executive Member, BIA
13. Sri A.C. Lama - Bhudhist Thai Temple
14. Sri N. Gawang – Individual
15. Sri Sanjay Kumar – Individual
16. Sri Sinith prakash – Individual
17. Sri Deepak Kumar – Individual
18. Sri Manish Sinha – Individual
19. Sri Manohar Kumar – Individual
20. Sri Pankaj Kumar – Individual
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Sl. Name and address of Participants
21. Sri Ajit Kumar – Individual
22. Sri Bidu Bhushan Pd.
23. Sri Neeraj Kumar – Individual
24. Sri Sanath Mishra – Individual
25. Nitam Raj – BBCN News
B.E.R.C. Representatives
1. Sri Lakshman Bhakta - Dy. Secretary, BERC
2. Sri Nand Sharma - Consultant, BERC
3. Sri Pramod Kumar Sinha – Deloitte (Consultant, BERC)
B.S.E.B. Representatives
1. Sri Satish Kumar Singh - C.E, Commercial, BSEB
2. Sri Om Prakash – GM cum C.E. , Gaya
3. Sri Arbind Prasad - E.S.E (Supply), Gaya
4. Sri J. K. Dubey - A.E.E (Tariff)
5. Sri R. N. Chaudhary E.E.E, Gaya
6. Sri A. K. Saha -A.E.E (Rev),MESA, Gaya
7. Sri Naresh Desai – Meghraj (Consultant, BSEB)
Participants present during the Public hearing at M uzaffarpur on 13 th March 2012
1. Sri Munindra Thakur
2. Sri. Dhurv Shankar Chaudhary
3. Dr. Naim Kauber
4. Sri. Vishnu Kant Jha
5. Sri. Ksishna Kumar
6. Sri. Hari Shankar Singh
7. Sri. Irshad Hussain
8. Sri. Akhilesh Singh
9. Sri. Arun Kumar Dhanuka – North Bihar Chamber of Commerce
10. Sri. Jai Prakash Sarraf – North Bihar Chamber of Commerce
11. Sri. Amid
12. Sri. Nunu Kumar Mishra
13. Sri. S. Mishra
14. Sri. Vineet Agrawal – M/s Ashok Polymer Pvt. Ltd.
15. Sri. Bharat Bhushan – Laghu Udyug Bharti
16. Sri. Sanjeev Kumar – Uttar Bihar Udyami Sangh
17. Sri. Chitranjan Prasad – Uttar Bihar Udyami Sangh
18. Sri. Ashok Bharti – Bijli Grahak Sangh
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Sl. Name and address of Participants
B.E.R.C. Representatives
1. Sri Lakshman Bhakta - Dy. Secretary, BERC
2. Sri Amit Kumar Laha – BERC
3. Sri Nand Sharma - Consultant, BERC
4. Sri Ankur Satija – Deloitte (Consultant, BERC)
B.S.E.B. Representatives
1. Sri Satish Kumar Singh - C.E, Commercial, BSEB
2. Shri Gyasuddin - GM-cum-CE, Tirhut Electric Supply Area
3. Sri Arvind Kumar – EEE (Urban), Muzaffarpur
4. Sri K.K. Sharma – ESE
5. Sri S. K. Das – EEE, Muzaffarpur (E)
6. Sri Umesh Bhakta - EEE, Muzaffarpur (W)
Participants present during the Public hearing at P atna on 14 th & 19 th March 2012
1. Sri H. C. Meena - CEDE/EER, Hajipur
2. Sri Arvind Kr. Mishra - Gurhatta, H. Path, Patna
3. Sri Prabhat Kumar - Sr. SE/TRD/DNR
4. Md. Zubair - Vidyut Sangharsh Morcha, Ara
5. Sri Raj Kishor Sharma - Dy. Sec. Lok Kalyan Aayog Ara
6. Sri Ajit Pd. Mehta - Sr. Dy. Sec., Bihar Jawan Kishan Morcha
7. Sri U. K. Poddar - BIA, Patna
8. Sri Sanjay Goenka - BIA, Patna
9. Sri Sanjay Bhatiya -Dinason, Patna
10. Sri Krishan Kr. Singh -Krishan Bhavan, Digha, Patna
11. Shree Nath Singh -Sangharsh Samiti
12. Sri R. B. Acharya - Sangharsh Samiti
13. Sri B. N. Prasad - Bhojpur Chamber of Commerce
14. Sri Shiv Narayan -Bhojpur Chamber of Commerce
15. Smt. Shakuntla Devi - Jan Sangharsh Morcha
16. Sri Vinay Kr. Sinha - C.P.I .M, Patna city, Patna
17. Sri Bimal Pd. Singh - Patna city, CPIM
18. Sri Virendra Thakur - T.U.C.C., Bihar
19. Sri Umesh Kr. Singh - Mahaschiv, Jan Sangharsh Morcha
20. Sri Abhay Goswami -Chairman, Jan Sangram Sena
21. Sri Dilip Mahto -Treasurer, Jan Sangharsh Morcha
22. Sri Subhash Parwari - Parwari Mills Private Limited
23. Sri Manish Poddar - Gangotri Iron & Steel Company Limited
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Sl. Name and address of Participants
24. Sri Manoranjan Pd. Singh – Individual
25. Sri Chandrika Singh – Individual
26. Sri A. P. Saha – Member Senior Citizen Forum
27. Sri Vijay Kr. Dibakar – Individual
28. Smt. Neelam Devi – Individual
29. Miss Lakshmi Kumari - Individual
30. Smt. Kamla – Individual
31. Prof. P. K. Sharma – Individual
32. Sri Doman Singh –Individual
33. Sri Raj Kumar – Individual
34. Sri Shaligram Singh - Individual
35. Sri Wakil Thakur – Individual
36. Sri Uma Shankar pd. - Individual
37. Sri Mritunjay Mani – Individual
38. Sri Ramanand Srivastava – Individual
39. Sri Raja Babu – Individual
40. Sri G. K. Sinha – M/s Balmukun Concast ltd.
41. Sri Sanjeev Kumar Chaudhary – GISCO
42. Sri Suraj S - BIA
B.E.R.C. Representatives
1. Sri Ganesh Prasad – Secretary, BERC
2. Sri R. P. Kanth – DD (A), BERC
3. Sri Lakshman Bhakta - Dy. Secretary, BERC
4. Sri Nand Sharma - Consultant, BERC
5. Sri P. R. Ranjan - Consultant, BERC
6. Sri K. N. Thakur - Consultant, BERC
7. Sri Pramod Kumar Sinha – Deloitte (Consultant, BERC)
8. Sri Pankaj Goinka – Deloitte (Consultant, BERC)
B.S.E.B. Representatives
1. Sri Satish Kumar Singh - C.E, Commercial, BSEB
2. Sri Vijay Kumar - FC II (F&A), BSEB, Patna
3. Sri L. N. Choudhary – ESE (Tariff), BSEB
4. Sri S. K. Srivastava - ESE, PESU Unit
5. Sri Vivek Mishra - Meghraj (Consultant, BSEB)
6. Sri Saurabh Garg - Meghraj (Consultant, BSEB)