Mescom - Chapter - 6

Karnataka Electricity Regulatory Commission TARIFF ORDER 2012 - MESCOM

Chapter – 6 – Review of Compliance of Directives issued by Page 91 the Commission

CHAPTER - 6

REVIEW OF COMPLIANCE OF

DIRECTIVES ISSUED BY THE COMMISSION

The Commission had in the earlier tariff orders and in various

letters issued the following directives for compliance by MESCOM.

Compliance of those directives is discussed in this section.

6.1 Directive on Demand Side Management and Energy Efficiency Measures

MESCOM is directed to explore the possibility of introducing the

following DSM and Energy Efficiency measures, which would result

in reduction in consumption of energy and peak demand

a) Making “Time of Day Tariff” compulsory for industrial

consumers.

b) Installing electronic “timer switches” for streetlight

installations for switching “on” and “off” at the required

timings.

c) Bifurcation of agricultural loads from the existing 11 KV

feeders.

d) Adopting HVDS for agricultural loads which results in reduction

of line loss and prevents theft of energy.

e) To adopt “Bachat Lamp Yojana” that is being launched by the

Bureau of Energy Efficiency.

MESCOM is directed to formulate a time bound action plan to

implement the above Demand Side Management and Energy

Efficiency Measures so that desired result is achieved. MESCOM is

also directed to submit a report thereon to the Commission within

three months.



Compliance by MESCOM

(a) Making “Time of Day Tariff” compulsory for industrial consumers.

As per Hon’ble Commissions’ Tariff Orders, optional “Time of day” is

implemented in MESCOM. As at the end of December 2011, 41 Nos.

of HT consumers and 16 Nos. of LT consumers have availed TOD

tariff facility. At present, whenever the consumers opted for TOD

tariff appropriate metering / Time Zone in the meter is being

provided. All HT installations, 40 HP and above in LT-industrial

category are having TOD compatible meters. Whenever, the

consumer opted for TOD tariff the time zone will be activated.

(b)Installing electronic “Timer Switches” for streetlight installations for switching “on” and “off” at the required timings.

Installation and maintenance of street lights is the responsibility of

local bodies. However, MESCOM has addressed letters to the

concerned Authorities of local bodies to install electronic “Timer

Switches” to the streetlights duly explaining the benefits available

there from.

(c) Bifurcation of agricultural loads from the existing 11 KV

feeders.

MESCOM has implemented RLMS in 147 nos of feeders for arranging

quality supply in scheduled time to Rural IP sets and arranging

continuous supply to domestic, commercial and industrial loads in

the rural areas. With the implementation of this Scheme in Kadur,

Chikmagalur and Sagar Divisions, the IP sets are separated from

other domestic/ commercial/ industrial loads in Rural area. This

has increased the quality of supply in scheduled time to IP sets and

continuous power supply to other categories of consumers.

d) Adopting HVDS for agricultural loads which results in reduction of line loss and prevents theft of energy.



MESCOM has identified Puttur Division for implementation of HVDS.

Based on the study, DPR will be prepared in the next 3 to 4 months

and compliance will be submitted.

(e)To adopt “Bachat Lamp Yojana” that is being launched by the Bureau of Energy Efficiency.

“Bachat Lamp Yojana” envisages distribution of quality long-life CFL

lamps, a maximum of four, to the grid connected residential

households in exchange for incandescent lamps in working

condition at Rs.15/- each. In the wake of non-response from the

vendors / providers, MESCOM floated tender for fourth time where

two vendors / providers have participated in the bidding process.

Action will be initiated for implementation of the scheme after

finalizing the received bids.

Commission’s views

MESCOM is directed to furnish a time bound action plan within three

months to implement the above Demand Side Management and

Energy Efficiency Measures immediately. The progress achieved in

regard to fixing Timer Switches to street light installations and

Bachat Lamp Yojana are not up to the expected level. The progress

achieved in implementing the directives shall be reported to the

Commission regularly. Also, the Commission reiterates its

suggestion that, ESCOMs on behalf of the local bodies, may take

action for installing timer switches to the streetlight installations

and recover the cost from the local bodies to save time in

avoidance of wastage of energy. MESCOM is directed to act

expeditiously on this issue.

6.2 Directive on Implementation of Intra State ABT

KPTCL and ESCOMs have reported that they have commenced the

process of setting up Area Load Despatch Centres to implement

Intra State ABT as earlier directed. The Commission hereby directs

that the work of establishing ALDCs in all the ESCOMs shall be



completed fully and Intra State ABT is made operational by 31st

August, 2010. Thereafter, progress achieved in this regard shall be

reported to the Commission on fortnightly basis.


The Distribution Control Centre of MESCOM was

commissioned on 22-09-2009.

The Facility of real time data viewing and Breakers

controlling is available upto 33 KV station level.

In respect of 66KV and above stations, only real time

data viewing facility is made available from the Master Control

Centre-1, which is under the control of KPTCL.


In the Advisory committee meeting held on 30.03.2011 it was

informed by MD, KPTCL that the Intra State ABT would be

implemented from April 2011 and the Generators would also be

included. The Commission notes that Intra State ABT is being

delayed on one ground or the other. This is affecting to inter

company accounting. Therefore, the Commission directs that the

KPTCL and the ESCOMs shall take all necessary measures

immediately to complete the remaining activities for

implementation of Intra State ABT and report compliance.

6.3 Directive on Taluk wise Feeders’ Segregation

ESCOMs shall furnish to the Commission the programme of

implementing 11 KV taluk wise feeders’ segregation during the

financial year 2010-2011 with the following details-

a) No. of 11 KV feeders considered for segregation.b) Month wise time schedule for completion of envisaged work.c) Improvement achieved in supply after segregation of feeders.




MESCOM in its letter dated 27-07-2010 has stated that in respect of

implementation of RLMS for the remaining 15 Nos of 11 KV Rural

feeders, 11 Nos. of feeders have been commissioned and 2 feeders

will be commissioned by the end of July, 2010.It has stated that the

other feeders have been omitted from the scope of the present

scheme.


MESCOM shall furnish the reasons for not including the other

feeders from the scope of RLMS. The Company shall furnish the

details of improvement in supply after implementation of RLMS.

6.4 Directive on Metering at the Distribution Transformer Centres (DTCs)

The Commission had earlier directed ESCOMs to complete

installation of meters at the DTCs by 31st December, 2010. In this

regard ESCOMs were required to furnish to the Commission the

following information by 30-04-2010 and thereafter report on a

monthly basis on the progress achieved in respect of -

a) No. of DTCs existing in the Company.b) No. of DTCs already metered.

c) No. of DTCs yet to be metered. d) Time bound monthly programme for completion of work


MESCOM has continued its program of metering Distribution

Transformer Centers with RAMR facility. The position of DTC

metering as at the end of December-11 is as below;



Division

Total No. of DTCs existing

as at the end of 31-12-2011

No. of DTCs metered as at the end of 31-

12-2011

Balance No. of DTCs to be metered

Urban

Rural

Total

Urban Rural Tota

lUrba

nRura

lTota

l

Mangalore 3308197

3528

12830

27285

7478

1946

2424

Puttur 647245

4310

1176

233 409 471242

1289

2

Bantwal 208328

5349

3121

46 167 87323

9332

6

Udupi 1244315

6440

0774

157 931 470299

9346

9

Kundapura 101153

1163

266 46 112 35

1485

1520

Shimoga 1442394

8539

0924

1995291

9518

1953

2471

Sagar 304233

5263

9192

1114130

6112

1221

1333

Shikaripura 207271

7292

469 2094

2163

138 623 761

Chikmaglore 519343

2395

1344

880122

4175

2552

2727

Kadur 213419

4440

7169

3778394

744 416 460

Total 8193 29025

37218

5665 10170 1583

5 2528 18855

21383


The overall progress is only 57% and MESCOM has not submitted

the Action Plan for implementing balance DTC metering. Therefore,

it shall furnish a month wise implementation programme along with

the proposed plan to obtain meter readings to conduct energy

audit. MESCOM is directed to put in concerted efforts to achieve

100% DTC metering and to conduct Energy Audit for the DTCs

metered already. Compliance/action taken regarding the same

shall be reported to the Commission early.

6.5 Directive on to prevent electrical accidents

The Commission has reviewed the electrical accidents that have

taken place in the State during year 2010-11 and with regret noted

that as many as 391 people and 595 animals have died due to these

accidents. From the analysis it is seen that major causes of these

accidents are due to snapping of LT/HT lines, accidental contact with

live LT/HT/EHT Lines, hanging live wires around the electric



poles/transformers, etc, in the streets posing great danger to human

lives.

Having considered the above matter, the Commission hereby directs

all the ESCOMs/Hukkeri RECS/KPTCL to prepare an action plan to

effect improvements in the transmission and distribution networks

and implement safety measures to prevent electrical accidents.

Detailed Division wise action plans shall be submitted by MESCOM

to the Commission within two months.


MESCOM has attached utmost importance to prevent electrical

accidents by formulating action plan.

MESCOM has initiated action to provide 11KV-33KV High Voltage

Detectors to the field staff, which is a safety device used to verify

whether the overhead line is live or not prior to earthling. It

indicates the presence of High Voltage by audio annunciation as

well as visual indication.

During 2009-10, 100 Nos of High Voltage Detectors of Motwane

make have been purchased through BESCOM. Also, MESCOM has

procured 321 Nos. of the Detectors.

Further, MESCOM has also distributed Special Line Testers to

Linemen in Chickmagalore and Shimoga Divisions. Action is being

taken to distribute these testers to other Divisions also.


The Commission notes that even during 2011-12, 59 people and 96

animals have died in the MESCOM due to electrical accidents. This has

been viewed seriously. In addition to procurement of safety

devices/equipment, it is also essential to make use of equipment in a

safe manner. Employees should be trained on safety measures to be

adopted while doing work on the network, besides creating continues



awareness on safety issues. MESCOM shall submit its action plan to

reduce accidents within one month and the progress achieved with

regard to reduction of hazardous installations in the network with

expenditure incurred for FY2011-12 shall also be submitted. MESCOM

shall also educate the consumers regarding the safety precautions to

be taken by them to avoid accidents through media and interaction

meetings.

Further, the Commission notes that the compensation paid in case

of accidents is inadequate and needs to be enhanced. Therefore

the Commission directs MESCOM to take action to suitably increase

the quantum of compensation under intimation to the Commission.

6.6 Directive on HT / LT Ratio

MESCOM is directed to take measures to achieve HT line: LT line

ratio of 1:1 by adopting Niranthara Jyothi Yojana in Rural areas and

by converting LT lines into HT lines and providing additional DTCs in

Urban areas in one taluk as a pilot project. By achieving 1:1 ratio,

LT line losses will be reduced. MESCOM shall furnish time bound

action to achieve this ratio in one taluk of the Company.


MESCOM has commissioned 3194, 2871, 2795, 2589 ,3383 and

2104 numbers of additional distribution transformers in Fy-07, Fy-

08, Fy-09, Fy-10 ,Fy-11 and Fy-12 (upto Dec-11) respectively. Two

numbers of new 33/11 KV sub stations were also commissioned in

December-11.

Consequently, there is marginal improvement in HT: LT ratio.

Comparison of HT:LT ratio in different years are given below;

Year Length of HT Lines

(in CKMs)

Length of LT Lines

(in CKMs)

HT : LT Ratio

Fy-08 21591 63095 1 : 2.92



Fy-09 22693 64653 1 : 2.85Fy-10 23647 66084 1 : 2.79Fy-11 24912 68757 1 : 2.76FY-12(uptoDec-11) 25646 70109 1 : 2.73


The Commission observes that HT to LT line ratio is the highest in

the MESCOM. Therefore, MESCOM is directed to achieve HT to LT

line ratio of 1:1 by converting LT lines into HT lines and providing

additional DTCs in Urban and Rural areas by expediting the works

under RAPDRP and HVDS, with a concerted approach to reduce LT

line losses. In view of slow progress in achieving the targeted ratio,

MESCOM is directed to furnish time bound action plan under

schemes mentioned supra to achieve this ratio in the Company.

6.7 Directive on MIS and Computerization

MESCOM shall improve its Management Information System (MIS)

and provide more details and explain the basis for all the

projections indicating the sources of data and the method of

estimating the projected values in the next filing.

The Commission directs MESCOM to hasten the pace of action to

achieve progress in computerization. MESCOM shall furnish the

details of sanctioned load and slab wise consumption for the

purpose of computation of fixed charges in the next ERC filing.

MESCOM has to improve its database, and there shall be

consistency in the data furnished to the Commission.


Hon’ble Commission has directed to furnish details of sanctioned

load and slab wise consumption accurately in the ERC for the

purpose of correct computation of fixed charges and revenue

realization in different slabs of consumption relating to various tariff

categories.



In this connection, it is to be submitted that MESCOM has furnished

the required data of sanctioned load and slab wise consumption in

the filing for computation of fixed charges and revenue realization.

Further, it is to be stated that MESCOM is changing the Total

Revenue Management Service Providers consequent to the

selections in the recent tendering process and will act diligently

towards improvement in database with consistency in the data.


MESCOM shall furnish the above details for the purpose of more

accurate computation of fixed charges and revenue realization in

different slabs of consumption relating to various tariff categories.

MESCOM has to improve its database and shall be consistent in the

data furnished.

6.8 Directive on Energy Audit

The Commission had directed MESCOM, to prepare a metering plan

for energy audit to measure the energy received in each of the

interface points and to account for the energy sales. The

Commission had also directed MESCOM to conduct energy audit and

chalk out an Action Plan to reduce distribution losses to a maximum

of 15% wherever it was above this level in 5 towns/ cities having a

population of over 50000.


As a part of the Company strategy to reduce technical and

commercial losses, MESCOM is undertaking energy audit in the

following levels;

a) Division wise energy audit: MESCOM is conducting energy

audit separately for each O&M Division duly accounting the inter

Division energy transfer transactions. Comparative position of

distribution losses in the Divisions are as below;



b) City / Town energy audit: As per the directions of the Hon’ble

Commission, the distribution loss in respect of the selected 6

cities namely Mangalore, Udupi, Shimoga, Bhadravathi, Sagar

and Chikmagalur are being continuously monitored. The loss

levels in all these cities are within 10%.

Further, for rigorous energy auditing MESCOM has selected 16

major taluk head quarter towns. Loss levels in 16 cities / towns

have been brought within 10% .

Position of distribution loss in the selected Cities / Towns, as at

the end of December-11, are as below;

Sl.No. City/Town % Dist. Loss

1 Mangalore 5.872 Udupi 6.693 Shimoga 8.044 Bhadravathi 8.775 Sagar 5.316 Chickmagalore 9.897 Bantwal 9.688 Belthangady 4.799 Puttur 3.56

Division% Loss in FY-

09

% Loss

in FY-10

% Loss in FY-

11

% Loss in FY-

12(Upto Dec-11)*

Mangalore 10.09 %

8.66 % 7.68 % 8.13%

Puttur 17.42 %

15.81 %

15.10 %12.81%

Bantwal 13.22%Udupi 10.76

%10.19

%9.23 %

7.29%Kundapura 8.59%Shimoga 8.61 % 8.76 % 8.03 % 8.02%Sagar 20.34

%20.57

%20.25 %

13.13%Shikaripura 8.46%Chikmagalore

9.96 %11.70

%11.47 % 14.73%

Kadur 19.01 %

22.59 %

22.40 % 25.04%

Total 12.95 %

12.64 %

11.92 %

10.98%



10 Sullia 1.5011 Kakala 6.9412 Kundapura 6.3413 Thirthhalli 7.8914 Shikaripura 9.1215 Soraba 8.6016 Hosnagar 6.1517 Kadur 8.6518 Tarikere 8.6219 Mudigere 6.3520 Koppa 5.1921 Sringeri 5.8522 NR Pura 7.38

c) Feeder wise energy audit: MESCOM is monitoring 639

feeders. Feeder wise energy audit is being carried out to assess

the distribution / AT&C loss. Loss levels in monitored DTCs Upto

Dec-11 are indicated below;

Division

No. of 11 KV feede

rs

No. of11 KV

feeders monitor

ed

Below

10%

10 to 20%

20 to 30%

30 to 40%

40 to 50%

Mangalore 112 112 83 29 0 0 0Puttur 43 40 38 1 1 0 0Bantwal 48 48 18 28 2 0 0Udupi 74 74 53 21 0 0 0Kundapura 30 30 19 9 2 0 0Shimoga 103 103 49 33 12 5 4Sagar 50 46 16 8 13 7 2Shikaripura 54 50 4 9 34 3 0Chickmagalore 62 61 11 30 18 2 0Kadur 78 75 18 10 9 16 22Total 654 639 309 178 91 33 28


MESCOM is directed to expedite the process and segregate the

technical and commercial losses duly backed up by relevant

studies. As seen from the analysis of the Division wise Energy Audit,

the distribution loss pertaining to Kadur Division is very high

compared to other Divisions. Therefore, MESCOM is directed to

initiate appropriate measures to reduce the loss to a reasonable

level. The Commission reiterates its directive to undertake energy

audit studies at distribution circle level and take necessary action to



reduce the higher loss level in 11 KV feeders and distribution

transformers centres. The compliance regarding the same shall be

furnished to the Commission regularly.

6.9 Directive on Assessment of IP sets’ consumption

The Commission had directed MESCOM to provide meters to DTCs

predominantly feeding to IP sets at the rate of two to four DTCs per

O&M section.

The Commission directs MESCOM to furnish the monthly data

downloaded from 22 ETV meters that was hitherto being furnished

by M/S TERI, commencing from the month of March, 07 and

onwards, in addition to the monthly statement of assessment of IP

consumption based on DTC metered sampling points that is being

furnished.

Pending 100% metering of IP sets installations and reading of

meters, MESCOM shall complete installation of meters to all DTCs

which are predominantly feeding IP sets and put in place a

mechanism to obtain periodical meter readings of such meters and

assess the IP set consumption.


In the MYT filing for the control period 2011 to 2013, duly explaining

the impreciseness of considering metered consumption in respect of

IP sets, Commission was requested to allow the present practice of

assessment of IP set consumption based on sampling DTC metering

feeding predominantly to IP sets, for Fy-11 and Fy-12. In this

regard, Hon’ble Commission has directed to;

Arrange for calibration of the meters provided to IP sets and

to furnish metered consumption of IP sets for Fy-13.



Furnish taluk wise assessed consumption of IP sets based on

DTC meters duly considering LT line loss of 7% determined

by M/s TERI’s study.

To meter all DTCs which are predominantly feeding IP sets.

On the above, it is to be submitted before the Hon’ble Commission

that;

MESCOM is initiating action for calibration of meters provided

to IP sets.

MESCOM is considering taluk wise assessment of per IP

consumption and the details Fy-11 is furnished in the

enclosed statement. (Annexure-2, page No.145 to156)

MESCOM has already metered all the DTCs predominantly

feeding IP sets. The taluk wise details are as below;

District Taluk

No. of predominantly IP feeding

DTCs

Dakshina Kannada

Mangalore 27Puttur 16Sullia 10Bantwal 23Belthangady 18

UdupiUdupi 67Karkala 22Kundapura 23

Shimoga

Shimoga 45Bhadravathi 26Thirthahalli 12Sagar 17Soraba 24Shikaripura 47Hosanagara 9

Chickmagalore

Chickmagalore 39Mudigere 13Koppa 6Sringeri 3NR Pura 6Kadur 84Tarikere 54

Total 22 591




MESCOM shall arrange for the calibration of the meters already

provided to IP sets and carry out replacement of faulty meters/CTs if

any for arriving at correct assessment of IP consumption, and report

to the Commission immediately and shall furnish metered

consumption of IP sets for FY13.Until then, MESCOM shall furnish

taluk wise assessed consumption of IP sets based on DTC meters,

duly considering LT line loss of 7% determined as per M/S TERI’s

study.

6.10 Directive on Quality of Service

a) Improving quality of service in Rural areas

The Commission has earlier commented on the poor quality of

supply, particularly in Rural areas. The Commission has directed

MESCOM to take action to reduce interruptions by attending to

periodical maintenance of lines and equipment, with particular

reference to Rural areas.

The Commission directs MESCOM to continue its efforts in improving

the quality of supply, particularly in Rural areas, where the quality

of supply is very poor.


In spite of severe constraints like network deficiencies, Manpower

shortage and crunch in fund availability, MESCOM has continued its

efforts to cater equated power supply to its consumers in Urban and

Rural areas including IP sets.

As per the directions of the Hon’ble Commission, MESCOM is

furnishing periodical reliability indices data in the prescribed

formats. The reliability indices for 11 KV feeders in district head

quarters of MESCOM for the month December-11 ranges from

98.58% to 99.27% and the same for towns and cities for December-



11 range from 97.09% to 99.73%. The reliability index of 11 KV

feeders in Rural areas of MESCOM for the month of December-11

ranges from 92.02% to 98.28%.

Commission’s Views

During the course of public hearing many consumers and their

representative complaint on the quality of service of MESCOM and

its employees. The Commission directs MESCOM to continue its

efforts in improving the quality of supply, particularly in Rural areas,

where the supply is poor. MESCOM is also directed to furnish the

compliance/progress regarding the extent of improvements carried

out to the network with details of expenditure made.

6.11 Directive on Reliability Index of supply of power to

consumers

As per Schedule – II of the KERC (Licensees’ standards of

performance) Regulations – 2004, the licensees are required to

compute the following reliability indices

a. Average No. of interruptions in 11KV feeders

b. Average duration of interruptions in 11KV feeders

c. Average No. of interruptions per consumer

d. Average duration of interruptions per consumer.

At present, ESCOMs are furnishing the following monthly data on

Benchmark parameters for both Urban and Rural areas separately

a. Average number of interruptions in 11KV feeders

b. Average duration of interruptions in 11KV feeders

Clause 8 of the Distribution system planning and security standard

of the Distribution Code in the Karnataka Electricity Grid Code- 2005

also specifies computation of the reliability indices for planning of

extension and improvements to a distribution system.




As per the directions of the Hon’ble Commission, MESCOM is

furnishing periodical reliability indices data in the prescribed

formats. The reliability indices for 11 KV feeders in district head

quarters of MESCOM for the month March-11 ranges from 93.69% to

97.94% and the same for towns and cities for March-11 ranges from

91.86% to 99.85%. The reliability index of 11 KV feeders in Rural

areas of MESCOM for the month of March-11 ranges from 84.29% to

98.07%.

The following comparative position of cumulative reliability indices

indicates the improvement in quality of service by MESCOM.

Sl.No.

ParticularsRange of indices

FY-10 FY-11

1.District Head Quarters

At feeder Level

94.27% to 98.10

%

95.96% to 97.64

%

At consumer level

93.25% to 97.96

%

94.45% to 97.08

%

2. Towns & Cities

At feeder Level

90.91% to 98.68

%

93.24% to 99.10

%

At consumer level

89.05% to 97.59

%

87.99% to 98.13

%

3. Rural Areas

At feeder Level

82.54% to 94.97

%

89.43% to 96.82

%

At consumer level

79.90% to 93.85

%

88.33% to 95.93

%


MESCOM is directed to improve the reliability indices of 11 KV

feeder in Rural areas with a time bound Action Plan to carry out

improvements to the network with details of expenditure made.

MESCOM shall furnish the above monthly data in the formats



furnished by the Commission as per the “Guidelines for

determination of Reliability Index of supply of power to consumers”

dated 15.12.2008.

6.12 Directive on Regularization of unauthorized IP sets

The Commission, in a number of letters, and in the earlier Tariff

Orders directed MESCOM to regularize unauthorized IP sets (except

those in the grey and dark areas), immediately without imposing

any condition and to bring them into books of Accounts and raise

bills for the same immediately.


The Government of Karnataka has ordered for regularization of un-

authorized IP sets existing in the system as on 28-02-2011 vide

order No. EN 09 PSR 2011 dated 11-03-2011. As per the order, all

un-authorized IP sets, existing as at the end of 28-02-2011, are

required to be regularized before 30-09-2011. GoK vide order

No.EN PSR 2011 dated .23-12-2011 has further extended the date

of regularization upto 31-01-2012.

In view of the Government Order, the reported number of un-

authorized IP sets as on 31-12-2011 is 16364 and out of which 5002

numbers have been regularized. The balance numbers will be

regularized after complying with the formalities by the prospective

consumers.


MESCOM is directed to complete the regularization of unauthorized

IP sets as per the Government Order by creating necessary

infrastructure. Further, MESCOM, needs to address the issue by

regular campaigns among farmers and to enlist the support of local

law enforcing Authorities to prevent the energisation of

unauthorized IP Sets. Further, time for energisation of IP Sets shall



be reduced to the minimum. Compliance/progress shall be

submitted to the Commission.

6.13 Directive on Metering

The Commission, had in the earlier Tariff Orders directed MESCOM

to provide meters to IP sets, BJ/KJ and street light installations,

immediately. It has observed that, continuation of supply by

MESCOM to these unmetered categories without meters from

10.06.2005 violates the provisions of Section 55 of the Electricity

Act, 2003.

Further, MESCOM is directed to furnish progressively, the metered

consumption of IP sets, instead of assessed consumption on a

monthly basis.


Hon’ble Commission has directed to meter 100% of IP, BJ/KJ and

Street Light installations. MESCOM has achieved 100% metering in

Street light installations. Percentage of metering in these categories

during Fy-11 and Fy-12 (upto December-11) is as follows. Further,

MESCOM has initiated action in May-2011 to provide revolving fund

of Rs.5 lakhs at the disposal of each of the Divisional Executive

Engineers (Ele.,) for speeding up the metering of the installations.

Category

Particulars FY-11FY-12 (upto

Dec-11)

BJ/KJ

No. of installations 165723 174506No. of metered installations 150547 155197

% of metered installations90.84

%88.94%

IP setsNo. of installations 202604 212819No. of metered installations 189111 199355% of metered installations 93.43 93.67%

Street light

No. of installations 14951 15663No. of metered installations 14951 15663

% of metered installations100.00

%100.00

%




The Commission reiterates its directive to achieve 100% metering

of Street Light, BJ/KJ and IP set installations in order to arrive at

accurate consumption. MESCOM is directed to furnish to the

Commission, a plan of action with a time bound schedule for

achieving 100% metering and to obtain meter readings. Action

taken/compliance regarding the same shall be submitted to the

Commission early.

6.14 Directive on Segregation of distribution business and retail supply business

MESCOM is directed to segregate accounts between Distribution

business and Retail supply business by adopting a suitable

methodology and implement the same from the next financial year.


MESCOM has constituted an internal committee of Officers at field

level and corporate level to make the study of various activities to

arrive at the cost apportionment formula.

Accordingly, based upon the Committee recommendations the

apportionment formula among Distribution and Retail Supply

business is as follows;

Particulars As proposed by the committee (%)

Dist. RetailPayable to generators 0 100Repairs &maintenance 73 27Employee costs 38 62A&G Expenses 37 63Depreciation & related debits 78 22Interest & finance charges 78 22Other debits 0 100Income tax 100 0Prior period credits / charges 0 100Gross fixed assets 78 22Depreciation 78 22Net fixed assets 78 22



CWIP 100 0

Accordingly, the revised segregation of costs is apportioned and

indicated in the relevant paras.


These percentage allocations arrived during previous years may be

reexamined and the revised percentage if any shall be considered

for the ensuing year.

6.15 Directive on Lifeline supply of un-electrified

Households

The Commission has directed ESCOMs to prepare a detailed and

time bound action plan to provide electricity to all the unelectrified

villages, hamlets and habitations in every Taluk and to every

household therein. The action plan shall spell out the details of

additional requirement of power, infrastructure and man power

along with shortest possible time frame (not exceeding three years)

for achieving the target in every taluk and district.


As a part of implementation of RGGVY programme, MESCOM has

identified 84,130 Rural house-holds for electrification in Shimoga

and Chickmagalore districts and as at the end of April-11 all of them

have been electrified. Also, 41,733 numbers of Rural House holds

have been identified in Dakshina Kannada and Udupi districts for

electrification which will be included in the 2nd phase of the RGGVY

scheme.

Further, MESCOM has identified 15 remote un-electrified villages in

the jurisdiction for electrification under Remote Village

Electrification Programme (RVE), a Ministry of New and Renewable

Energy, GoI, sponsored programme. List of the villages has been



furnished to KREDL as per their request vide letter dated 04-10-

2010.

The programme is sought to electrify the remote villages through,

distributed renewable energy generation technologies of small

hydro power plants, biomass gasification systems, non-edible

vegetable oil based engines, biogas engines, solar photovoltaic

power plants and SPV Home lighting Systems.


In its tariff order dated October 28, 2011 the Commission had

directed ESCOMs to prepare an action plan to provide lifeline supply

of electricity to all Households without electricity in their respective

jurisdictions.

The Commission directs MESCOM to complete the task of

identification of households without electricity expeditiously. The

ESCOMs could take the latest District wise census data and prepare

detailed project reports for extending electricity supply to these

Households by availing of funding assistance under the RGGVY or

other programmes and report the compliance.

6.16 Directive on Power supply during night hours for

villages

It was directed to ensure at least 11 hours of single-phase power

supply to the Rural areas every day between 6.00 PM and 6.00 AM

with provision for one hour of load shedding, if required, to manage

evening peak demand between 6.00 PM and 10.00 PM.


The Hon’ble Commission has directed to ensure at least 11 hours of

single-phase power supply to the Rural areas every day between

6.00 PM and 6.00 AM with provision for one hour of load shedding, if



required, to manage evening peak demand between 6.00 PM and

10.00 AM.

In this connection, it is to be submitted that MESCOM is catering 7

to 19 hours of 3 phase supply and 9 to 12 Hours of single phase

supply to Rural areas.


The Commission while appreciating the MESCOM for providing 7 to

19 hours of 3-phase supply and 9 to 12 hours of single phase

supply, to Rural areas, directs to continue its efforts to ensure

power supply during night hours for villages as per Commission’s

directives.

6.17 Directive on Reliability of electricity supply

It was directed to prepare and publish supply schedules and report

compliance.


It was submitted by MESCOM that it has prepared supply schedules

and posted the same on the website. It was further submitted that

compliance has also been sent to the Commission in this regard.


The Commission directs MESCOM to continue to submit the required

information within the stipulated period regularly.

6.18 Directive on Responsiveness to consumers

The Commission directs to hold consumers interaction meetings in

each O & M Sub-Division once in every two months according to a

published schedule. Such meetings shall be attended by

Superintending Engineers, Divisional and Sub-Divisional Engineers.



MESCOM shall submit a schedule of such meetings to the

Commission.


Consumer interaction meetings at sub Division level are being

conducted regularly where the Superintending Engineers (Ele) of

O&M Circles are also attending. Necessary press notification in this

regard are also being issued well in advance for information of

general public.


The Commission directs the MESCOM to continue its efforts for

conducting Consumers Interaction Meetings in all Sub-Divisions. It

shall also submit a schedule of such meetings to the Commission.

The feedback of such meetings conducted in one Rural and Urban

Sub-Division shall be furnished to the Commission on quarterly

basis.

6.19 Conservation of energy in irrigation

The Commission directs the MESCOM shall set up an efficient

Irrigation Promotion Cell to promote drip/sprinkle irrigation system

among farmers. These Cells shall co-ordinate with University of

Agricultural Sciences and to various departments of Government to

set up demonstration units of drip irrigation and conduct consumer

education programme for the benefit of IP set consumers.


MESCOM has initiated action to take-up two pilot projects, one in

Dakshina Kannda and one in Udupi district for the implementation

of conservation of energy in irrigation.




The Commission reiterates its direction to set up an efficient

Irrigation Promotion Cell to promote drip/sprinkle irrigation system

among Farmers. Further, it is directed to submit details of two

projects taken up in Dakshina Kannada and Udupi Districts with the

results of the study to the Commission early.

6.20 Directive on reduction in the Distribution Losses

It is the Commission’s view that ESCOMs can reduce distribution

losses to a significant level by taking up certain improvements in

the existing distribution networks. The State Level Advisory

Committee of the Commission has also discussed these issues on

more than one occasion, and suggested specific measures which

should be taken by ESCOMs to substantially reduce the distribution

losses. Considering the obvious need for the ESCOMs in the State

to launch a major drive in this regard, and after considering

appropriate technical advice, the Commission directs the ESCOMs to

take up the following measures during the current year:

(i) Implementation of HVDS

In view of the obvious benefits in the introduction of HVDS in

reducing distribution losses, the Commission directs that MESCOM

shall implement High Voltage Distribution System in at least one

O&M Division in a Rural area in its jurisdiction.

(ii) Demand Side Management in Agriculture

In view of the urgent need for conserving energy for the benefit of

the consumers in the State, the Commission directs that MESCOM

shall take up replacement of inefficient pumps with energy efficient

pumps approved by the Bureau of Energy Efficiency, at least in one

Sub-Division in its jurisdiction during the Financial Year 2012.

(III) Optimizing Transformer Capacities



The Commission directs that ESCOMs should undertake a

systematic audit of transformer loads in each Sub-Division on a

quarterly basis and ensure that transformers installed are of

optimum capacity, keeping in view the load to be serviced.

MESCOM shall report the results of the audit to the Commission

with effect from the last quarter of the calendar year 2011.


(i) Implementation of HVDS

MESCOM has about 41,222 Km of 3 ph. lines and 28,886 Km of

single ph. lines across its jurisdiction. Since there is huge single

phase circuits, MESCOM is intending to introduce HVDS by procuring

single phase transformers for which orders for procurement of 50

single phase transformers have already been placed with M/s

KAVIKA which is expected to be supplied by March-12. Further,

MESCOM has also initiated action for GIS survey of all its distribution

transformers for development of a reliable TC data base. MESCOM

has identified Puttur Division for implementation of HVDS. Based on

the study, DPR will be prepared in the next 3 to 4 months.

(ii)Demand Side Management of Agriculture:

MESCOM has selected two feeders, one Kabaka in Puttur divison

and another Manai in Uudpi Division, for pilot implementation of

energy efficient pumps. GIS mapping of these feeders has been

completed and validation of the data is in progress. Replacement

of MNR and faulty meters of all the IP sets of these feeders is

completed. Now, twelve months of data analysis of these feeders

are required. Thereafter, process of providing the energy efficient

pumps to all IP set installations in the feeders will be considered

through PPA model.

(iii) Optimizing Transformer Capacities:



MESCOM has taken up GIS survey of all its distribution transformers

for development of a reliable TC data base the results of which will

be available in the next 3 to 4 months.


The Commission directs MESCOM to formulate a time bound action

plan to implement the above measures which will substantially

reduce the distribution losses. As regards implementation of HVDS,

the Commission has issued detailed Guidelines / Methodology to

ESCOMs vide its letter No 23/12/499 dated 19.03.2012 by

entrusting the study to M/s PRDCL. MESCOM is directed to follow

these guidelines and immediately take up implementation of HVDS

programme in its jurisdiction without any further loss of time and

report the progress/compliance to the Commission.

The progress achieved in regard to demand side management in

agriculture is not adequate. Also, the Commission is of the view

that sufficient action has not been taken in respect of optimizing

transformer capacities and directs MESCOM to conduct the

systematic audit in each Sub-Division expeditiously and submit the

results of the audit to the Commission immediately.

6.21 Improving the quality and reach of service and adoption of a customer-oriented approach in business through;

The quality of service provided by the ESCOMs is in need of urgent

improvement to meet the expectations and needs of the

consumers. The Commission has also noted that a large number of

vacancies in the field staff of the ESCOMs and non-availability of

materials on a timely basis are two important factors constraining

the ESCOMs in providing quality service by undertaking

maintenance of the distribution network and attending to the

complaints of the consumers. The Commission views the matter

seriously and directs the ESCOMs to take the following measures

expeditiously:



(i) Recruitment of Field Staff

The Commission, directs that MESCOM shall fill up at least 50

percent of the vacancies in the cadres of Junior Engineers, Linemen

and Assistant Linemen during the Financial Year 2012. MESCOM

shall submit to the Commission a report on the action being taken

to fill up the vacancies as above in the specified time limit.


It is to be submitted that, the process of recruitment of 346

numbers of Assistant Linemen is in progress. Further, a request for

recruitment of about 251 numbers of AEs/JEs / AAOs has been

forwarded to the Government for approval.

(ii)Service Centers for improved Responsiveness:

MESCOM shall introduce the system of adequately equipped

“Service Centers” at least in two Rural sub Divisions during the

current year and report the results of its operations along with

details of additional expenditure to the Commission.


It is to be submitted that, all major towns / cities in MESCOM are

having round the clock service stations with vehicle facility and

others major load centers have been provided with 12 Hours service

station with vehicle facility.

(iii) Customer-Oriented Approach in Service:

MESCOM shall prepare a detailed training schedule for their

Operational and Administrative staff, so that each field level

functionary undergoes training at least once in a period of two

years.




It is to be submitted that, MESCOM is imparting training to its field

officers on regular basis. In Fy-12 (upto Dec-11) MESCOM has

imparted training to 1246 employees in various cadres.


The Commission appreciates the action taken by MESCOM for

preparing a training schedule for imparting training to its

Operational and Administrative staff. The Commission desires that

this is an important programme aimed at motivating the employees

and increasing their effectiveness by upgrading their skill level, it

shall be continued without any let up. The implementation of this

programme shall be monitored at corporate level for its usefulness

and reported to the Commission.

6.22 Measures to improve financial viability

(i) Recovery of Arrears of Receivables

The arrears of receivables to the MESCOM from various consumers

including the Local Bodies is to the tune of Rs.370.60 crores as on

31.3.2011. The Commission is of the view that the realization of

these arrears is crucial to the financial viability of the ESCOMs. The

Commission, therefore directs that the MESCOM should immediately

take up the recovery of these arrears with Government’s

assistance, so that at least 33 percent of the arrears outstanding as

on 31.3.2011 are realised every year over the next three years.


It is to be submitted that, receivables as at the end of Mach-11 is

Rs.330.73 Crores out of which recoverable amount is Rs.317.16 Cr.

The break up of receivables is as below;

1. Water Supply & Street Light Installations : Rs.128.98 Cr.

2. IP set dues (From Apr-03 to Jun-08) : Rs.147.00 Cr.

3. Other installations. : Rs.41.18 Cr.



In respect of item (1), GoK has been addressed vide this office letter

No.10601-02 Dt.19-01-2012. In respect of item (2) & (3), the circles

Superintending Engineers (Ele) have been directed to initiate action

for recovery of dues.

(ii) Sub-Divisions as Strategic Business Units

The present organizational set up of ESCOMs at the field level

appears to be mainly oriented to maintenance of power supply

without a corresponding emphasis on realization of revenue. This

has resulted in a serious mismatch between the power supplied,

expenditure incurred and revenue realised in many cases. The

continued viability of the ESCOMs urgently calls for a change of

approach in this regard, so that the field level functionaries are

made accountable for ensuring realization of revenues

corresponding to the energy supplied in their jurisdiction.

The Commission directs that MESCOM shall introduce the system of

Cost-Revenue Centre Oriented Sub-Divisions at least in two

Divisions in its operational area and report results of the experiment

to the Commission.


It is to be submitted that, MESCOM has identified two Divisions one

in Mangalore Circle – Puttur Division and one in Shimoga Circle –

Shimoga Division for introduction of Cost-Revenue Centre Oriented

Sub Division. The modalities of bifurcation and drawing

expenditures along the relevant account heads are in progress.

Hon’ble Commission will be apprised of the results at the earliest.


The Commission directs that MESCOM shall continue the efforts for

realization of arrears without any let up and monitoring of this

activity through coordinated efforts at each Sub-Division, Division

and Circle levels shall be reviewed at corporate level regularly for

its effectiveness. As for introducing the strategic business unit



concept MESCOM shall expedite the process and implement it early

and report the compliance to the Commission.

6.23 Summary of Tariff Order 2012:

The Commission has approved an ARR of Rs.1828.43 Crores as

against MESCOM’s proposed ARR of Rs.1878.06 Crores.

The revenue gap as worked out by the Commission is Rs. 50.02

Crores as against MESCOM’s estimated gap of Rs. 217.79

Crores.

The Commission has allowed additional revenue of Rs.50.02

Crores on tariff Revision as against the proposed additional

revenue of Rs.217.79 Crores.

Approved increase in revenue is 3% against MESCOM’s proposed

increase of 12 %.

MESCOM had proposed an increase of 73 paise for all categories

of consumers other than BJ/KJ & IP Sets. The Commission has

increased tariff for IP Sets and domestic category by 10paise per

unit and the increase in tariff for other categories is at 20paise

per unit.

Considering the importance of providing drinking water supply

under LT Category, the Commission has reduced the tariff for LT

Water Supply installations by 50paise per unit. Also the

Commission has retained the tariff for water supply installations

under HT category at existing levels.

While determining the revenue gap for FY13, an amount of Rs.

10.00 Crores of Regulatory Asset set aside in the previous tariff

order has been absorbed in the revision of tariff.

Time of the day tariff is made mandatory for installations under

HT2 (a) and HT2(b) with contract demand of 500KVA and above.

The existing ToD on optional basis for categories under LT5, HT1

and HT2(a) & HT2(b) with sanctioned load/contract demand of



less than 500KVA will continue. The reduction of 125 paise per

unit is continued for consumption in the off peak period in this

system.

In this Tariff Order, the Commission has reintroduced the cross

subsidy surcharge payable by open access consumers.

The Commission has also decided to introduce a mechanism for

recovery of Fuel Cost Adjustment charge. Separate order in the

matter will be issued in due course.

Green Tariff introduced in the previous tariff order for HT

Industries & HT Commercial Consumers at their option, to

promote purchase of energy from Renewable Sources and to

reduce carbon footprint is continued. Consumers opting for

green tariff have to Pay Re. 1.00/unitover and above the normal

tariff.

A new HT tariff category namely HT5 is introduced for

consumers availing temporary supply with a demand of 67HP or

more.

The existing Tariff categories HT4 (a) and HT4 (b) for Residential

purpose in urban and rural areas respectively are merged as

HT4 which is applicable to all areas of the ESCOMs.

As in the previous Order, the Commission has continued to

provide a separate fund for facilitating better Consumer

Relations /Consumer Education Programs.

The cap on short-term power at Rs.4 per unit to meet shortfall in

supply is continued.

6.24 Commission’s Order

1. In exercise of the powers conferred on the Commission

under Sections 62, 64 and other provisions of the

Electricity Act 2003, the Commission hereby determines



and notifies the distribution and retail supply tariff of

MESCOM for FY13 as stated in Chapter-5 of this Order.

2. The tariff determined in this order shall come into effect

for the electricity consumed from the first metering date

falling on or after 30th April 2012.

3. This order is signed dated and issued by the Karnataka

Electricity Regulatory Commission at Bangalore this day,

the 30th April 2012

Sd/- Sd/- Sd/- (M.R.Sreenivasa Murthy) (Vishvanath Hiremath) (K.Srinivasa Rao)

Chairman Member Member

Documents

Mescom - Chapter - 6