UPDATED STATUS OF COMPLIANCE OF THE DIRECTIONS IMPARTED IN THE TARIFF ORDER-2008-09

Directions of Tariff Order FY-2002

Direction No. Directions imparted by Hon. Commission vide its interim order dated 6.12.2008,7-2-09&7-3-09

Latest Status of the Directions

11.3(a): Unbundled Costs (Dir. Nos. 7.1 to 7.3)

The Commission expresses it concern over the slow speed in the implementation of this direction and feels that this matter should be given priority and WTM of the Board should meet once a month to review the status and to facilitate the decisions required to finalize and adopt the segregated balance sheet first for financial year, 2006-07 and thereafter for subsequent years. The Commission further directs the Board to complete as per the assurance given by the Board while submitting the updated status vide above stated M.A. dated 5.12.2008, the exercise of segregated balance sheet for the Financial Year 2007-08 by 31.12.2008 and also to submit the complete status report to the Commission before the next date of hearing.

The Consultant engaged by the Board has submitted the preliminary report for unbundled balance sheet for three businesses viz generation, transmission and distribution utilities, which has been sent to the field units for their comments and thereafter shall be scrutinized in F&A Wing.. He has also submitted the provisional report on the Balance Sheet of the Board for the year, 2006-07 on dated 28.7.2008 and for the year, 2007-08 on dated 30.12.2008 of all three utilities which can only be scrutinized on confirmation of balances by the field units.

11.3(b): Financial Restructuring (Dir No. 7.8)

The status of this direction was also discussed with the Member (Finance) in a meeting held on 22nd August, 2008.The Commission directs the Board to take up the matter with the Government of Himachal Pradesh for providing funds for cleaning up the balance sheet, injecting more equity and if possible provide fiscal assistance to meet the urgent debt servicing liability and report back to the Commission the progress gained in this regard, such report being made available alongwith GoHP response by 31st January, 2009.

In accordance with the directions of Hon’ble Commission, the matter for providing funds for cleaning up the balance sheet, injecting more equity and to provide fiscal assistance to the Board for debt servicing liability and also for providing fund to meet the increased pension liability of pensioners, has been taken up with the H.P.Government vide CAO letter no HPSEB/F&A/LS-141(Tariff)/2008-2931 dated 28-3- 09. The response of the H.P. Govt is awaited.

11.3 (c) : Public Interaction Programme (Dir. Nos. 7.11 & 7.12)

The Commission examined the Annual Plan under Public Interaction Programme submitted by the Board vide letter No. HPERC/501/Vol-I-Dir(TE)/NG/2008-2717 dated 22.10.2008 and activities to the tune of Rs. 3,72,525/- were approved by it for implementation.

The activities approved by the Hon’ble Commission are under implementation.In order to study the effectiveness of the programme, the board has already initiated number of steps and details thereof have been submitted to the Commission during the last meeting, which was, however, not accepted by Hon’ble Commission. In

The Board informed the Commission that it has tried to take the services of the independent agencies to study the effectiveness of the programme. The Commission feels that the initiatives planned by the Board for seeking feedback under the programme are not going to yield the desired results and therefore directs the Board to get the impact assessment study done as per the assurance given by the Board in the last hearing held on 3.5.2008.

compliance to the direction and as per the assurance given by the Board to Hon’ble Commission, the PRO of the Board has been deputed to Karnataka to study the initiative taken by the BESCOM(Bangalore Electricity supply Company ). In the feed back report , the officer has submitted the report on the Communication Strategy adopted by the BESCOM (Bangalore Electricity supply Company ) and which is being studied. However during the preliminary scrutiny of this report, it is observed that BESCOM has taken number of communication measures to increase awareness amongst the consumers thro’ various medias similar to the steps taken by the Board to increase the awareness amongst its consumers about the public interaction programme. A comprehensive plan after considering the remaining useful points of BESCOM will be submitted to the Hon’ble Commission. after the approval of the Board.,

11.3(d): Unproductive Assets (Dir No. 7.13)

The Commission observes that the information submitted by the Board on 20.8.2008 as Annexure-A regarding details of material declared surplus/condemned and disposed off during the year 2008-09 (upto June,2008) is deficient. The Commission, therefore, directs the Board to re-look into these details and submit the revised updated status upto September,2008.

The Commission feels that more concerted effort is required to be made by the Board to condemn/dispose off the unproductive and surplus stores at regular intervals and directs the Board to make submissions regarding progress achieved on quarterly basis.

The Board assures the Hon’ble Commission that it will continue its efforts to condemn/dispose off the unproductive and surplus stores at regular intervals

In this regard, it is intimated that the details of material declared surplus/condemned and disposed off during the year, 2008-09 for the Qtr ending 9/2008 &12/08 had been submitted to the Hon’ble Commission in compliance report submitted on 6-12-08.&25-4-09

11.3(f): Power Sector Reforms (Dir. No. 7.14)

Direction issued vide Interim order dated 6-12-09The Commission observes that the progress reported by the Board to achieve the milestones is not satisfactory and directs the Board to make sincere efforts to achieve the milestones. The Commission further directs the Board to furnish the assessment report, if any, prepared by Ministry of Power, Govt. of India with respect to the APDRP scheme and the power sector reforms in the

The Board is making sincere efforts to achieve the milestones specified in the MOU signed between Govt of H.P.& M.O.P. The Board has already submitted the Power Sector returns upto the qtr ending 12/08. Further, the board has submitted the, 77th Report of PAC on APDRP received from MoP, during Nov,2008 to the Hon’ble Commission. The Board has requested the MoP GOI to forward the

State. Evaluation Report of the progress of APDRP works of seven circles out of 12 circless H.P. conducted by M/s Teri New Delhi. But the same has not been received as yet from the Ministry of Power. . The authenticated copy of the report will be submitted to the Hon’ble Commission after its receipt from Ministry of power

11.3(g): Voltage-wise Data (Dir No. 7.29)

The Board informed that it has issued instructions and sent formats to the field units for submission of voltage-wise data. The copies of the prescribed formats submitted to the Commission were examined by the Commission and were found generally in order. The Commission directs the Board to ensure that this data is supplied by all units regularly and directs the Board to make submission, alongwith other information for processing with MYT petition for financial year, 2009-10.

The voltage-wise data for the year, 2007-08 for all the circles has been compiled and submitted to the Hon’ble Commission along with other tariff filing on 5th Feb, 2009. Regarding the voltage wise data for the year 2008-09 is concerned, the data for the year 2008-09 shall be submitted to the Hon’ble Commission after its receipt from all the field units after scrutiny of the same.

Directions of Tariff Order FY-2005

11.4(a): Prioritization of Deliverables from ASCI (Dir. No. 9.4.1.5)

The Board informed that ASCI had submitted the final reports on Module-2 and Module-3 and the same have already been submitted to the Commission. The Board also submitted that it has got extension to function as a State Transmission Utility and a Licensee upto 31.8.2008. The Commission directs the Board to verify and re-confirm the date of extension and also to firm up with the GoHP the unbundling model so that preliminary preparatory work can be started at the earliest.

The H.P. Govt. vide Notification dated 28-2-09has granted extension to HPSEB for the further period upto 15-6-09 beyond 31-7-09, to function as a State Transmission Utility and a Licensee.

11.4(b): Valuation of Assets (Dir Nos. 7.15 to 7.17 & 9.4.1.8)

The Commission expresses its concern over the delay in completion of pilot project of Shimla Circle, the report of which was due for submission by December, 2007. The Board informed that valuation of assets of pilot project would be completed by 15th January, 2009 and thereafter validation of data would be undertaken.

The Commission would like to know what efforts have been taken by the Board to get this exercise completed within the stipulated time schedule by the consultants and

The status of valuation of the asset mapping is as under:-

As on 31st March,2009 :-

a) Out of total 91 feeders, 75 feeders have been mapped including consumer indexing.

b. Mapping work on remaining 16 feeders is expected to be

whether any action has been taken to recover liquidated damages from the company as per the contract.

The Board also informed that the firm would have done the valuation work but the asset data is pending for validation from S.E. Operation Circle, Shimla. The Commission directs the Board to ask S.E. Operation Shimla to be present on the next hearing to explain the reasons for the delay on his part and also directs the Board to submit the complete report on the next date of hearing.

completed by 15th May, 2009 and willto be submitted for validation alongwith balance data of 11 feeders by 31 st

May 2009.

c. Out of 53 feeders, data for 19 feeders has been validated so far and 14 feeders are in pipeline for validation.

d. Draft FARs for the assets mapped so far submitted to HPSEB. The comments of field offices, are still awaited.

LD charges are being deducted as per contract provisions from the payments made so far to firm. HPSEB, has already allowed the firm to complete all asset mapping work by 31st March 2009.

11.4(c): T&D Losses (Dir. No. 9.4.2 & 10.4.4)

The Commission has devised and forwarded the formats to the Board for reporting circle-wise losses with the revised MYT petition for the control period, but no submission has been made till date by the Board. The Commission directs the Board to submit the requisite details alongwith other formats for reporting on performance indicators by 20th December, 2008 as part of MYT petition.

The Board has submitted voltage-wise/circle-wise T&D Losses for the year, 2006-07, 2007-08 on the formats specified by the Hon’ble Commission in its MYT filing on 5th February, 2009.

.

11.4(d): Capital Works in Progress (CWIP) to be capitalized (Dir. No. 9.4.3)

The Commission that the compliance reported by the Board on this direction be substantiated by furnishing the requisite details on the format as prescribed in the MYT Order, failing which the newly capitalized assets would not be considered for depreciation etc.

The Capital works in progress amounting to Rs. 218.69 Crore have been capitalized during the year 2008-09 i.e. ending 2/2009. The details on the formats prescribed in the MYT Order are being scrutinised in the F&A wing and will be submitted to the Hon’ble Commission.

11.4 (e): Capital Projects, Time & Cost Overrun (Dir. Nos. 9.4.4. and 9.4.11)

The Board informed that to have the online monitoring in place at the earliest, the Board has authorized the Chief Engineers to purchase PRIMAVERA software at their own level. The Commission feels that its intent has been distorted by limiting it to installing this software whereas bits real purpose was to have an online evaluation and regular and quality monitoring of all capital works of the

The meeting of Committee to review the progress of all Major Generation Projects is being convened regularly. Last meeting was convened on 5.3.2009 under the chairmanship of Sh.R.K.Jain, Chairman, HPSEB

As regards the usage of project management software for

order to ensure regular monitoring of the projects it direct that Board have these systems in place.

The Commission’s staff to examine the minutes of the meeting of the Committee held on 27.09.2008 to review the progress of al major generation projects. The Commission observes that the meetings of the Committee are not being held regularly. The Commission directs the Board to give an undertaking that the meetings of the Committee will be held regularly on monthly basis and to submit to the Commission, the minutes of the meetings held henceforth.

regular and quality monitoring, it is submitted as under:-

1No. Primavera Enterprises (Construction P3 e/c version 5.00) has been provided for monitoring progress of ongoing Hydro Electric Projects each under M.D.Pabbar Valley Corporation, Shimla-2, and M.D. Beas Valley Power Corporation, Jogindernagar during January 2006, the requisite training has also been imparted to the respective persons at site of installation. However, now the PVPCL has been merged with the newly created “Himachal Pradesh Power Corporation Ltd.”

HPSEB has already authorized project units to purchase Primavera at their end to monitor the Projects.

MS Project 2000 has already been provided in the Office of Chief Engineer Design, Sundernagar during March, 2005 for monitoring projects.

The Administrative control of the Office of Chief Engineer (Design.) Sundernagar also stands transferred to M/s Himachal Power Corporation Ltd.

11.4(f): Outstanding dues from Govt. Departments (Dir. No. 9.4.13)

The Commission is satisfied with the status reported status. The Board is directed to reconcile its accounts with the GoHP on a regular basis and report the status at quarterly intervals.

The total outstanding dues from the Govt. departments ending 2/2009 are as under:-.

i) I&PH Rs. 41.42 Croreii) Other Deptts, Rs. 4.84 Crore Total Rs 46.26

11.4(g): Employees Cost (Dir. No. 9.4.14)

Direction issued vide interim order dated 6-12-08

The Board informed that it has abolished 2097 posts (1431 of various categories of recruitment lying vacant for the

The submission made by the Board vide its affidavit dated 4-

last more than three years and 666 posts vide order dated 29.9.2008 , has proposed a training project involving Rs. 1.40 cr. For capacity building to the Ministry of Personnel, GoI and shifted the qualified staff working on lower posts to the higher posts.

The Commission expresses its concern that no direct recruitment of AEs/JEs and other technical personnel has been made by the Board on regular basis to fill up the vacant posts, subsequent to the one time recruitment done in 2007. The Commission directs the Board to submit the year-wise status of vacancies and the recruitments made and Member (Admn) to be present to explain the matter on the next date of hearing.

3-09 is as under :-

,The Board has abolished 30 more posts of various categories vide office order No.33 dated 30.9.2008 which were lying vacant continuously for more than last 3 years in view of the standing instructions of H.P. Govt. in pursuant to the M.O.U. signed between state and centre Govt.. Uptill now the total 2127 Nos. posts of various categories have been abolished by the HPSEB. Besides in continuance to above request had been made to field units functioning under HPSEB to supply the information with regard to surplus staff to be deployed on need basis vide o/o No.HPSEB/Sectt/HRD-2-23/2008-76648-64dated 25/9/2008.

The year-wise status of vacancies and recruitments made in respect of AE/JE(E)/(C/M) is as under:-

Year

Category

Vacancies arisen

Year cumulative

Year

Wise total.

Resultant

Vacancies.

Post filled in on direct recruitment on regular basis

Postfilledin

Ondirect recruitment oncontract basis.

2007

AE(E)

60 60

60 - -

AE(C/M)

16 16

16 - -

The Commission recalls that certain norms were evolved for the posts required for the various functional units by a Committee constituted by the Board for the purpose and directs the Board to submit a copy of this report alongwith Action Taken Report to the Commission.

JE(E)

299 299

- - -

JE(C/M)

92 92

92 - -

2008

AE(E)

41 101

66 20 15

AE(C/M)

24 40

33 05 02

JE(E)

299 299

187 112 -

JE(C/M)

46 46

46 - -

Note:- Filling up of 99 posts of J.E(E) and 23 posts of J.E.(C/M) on merit basis is under process in HPSSSB, Hamirpur and 23 posts of J.E(C/M) on batch wise basis is under process in the O/O Chief Engineer (Project), HPSEB, Shimla.

HPSEB vide its Office Order No.28 HPSEB(Sectt)/96 dated 23.4.1996 has constituted norms committee to review the existing norms and to suggest norms for Generation, Transmission and M&T/PLCC Units taking in to consideration the financial resources of the Board. Accordingly said committee constituted for the purpose has submitted its report on dated 20.12.1996 further submitted to WTM of the Board against agenda item No.250.19 regarding acceptance of recommendation of the committee constituted for reviewing existing staffing and work load norms and

discussed in its 251st of the WTM of the Board:-

“Dropped”

It is further submitted that thereafter proposal against agenda item No.280.08 regarding up gradation of 10% posts of S.S.A as Foreman (S/Stn.) to avoid stagnation in the cadre of Sub/Station was discussed in the 280th meeting of the Board held on 12.11.2001 and decision of the Board is as under:-

“Withdrawn, However it was decided to fix norms of field technical staff. for this purpose a committee constituting of following is constituted:-

1. Chief Engineer(OP)South Chairman

2. SE Trans. Circle, Shimla Member

3. C.A.O F&A Shimla Member.

4. Under Secretary (HRD) Member.

Terms of reference for consideration of this committee will be finalized by Member (OP), Member (Tech.) & Member (Admn.) This committee will submit its report by 31st Jan. 2002”.

In view of the above WTMs decision, a committee has been constituted vide office order No.39/HPSEB(Sectt)/2001 dated 20.12.2001. Accordingly said committee constituted for this purpose have submited its report on dated 9.10.2003. The aforesaid proposal was submitted to WTMs of the Board against agenda item No.312.08 discussed in 312 meeting of WTMs held on 10.3.2004 and the decision of the Board as under:-

Direction issued vide interim order dated 7-2-09Member(Admn) of the boardinformed that the board has made the direct recruitment of jes/Aes in the past and is in the process of filling up145 posts of JE’s through direct recruitment. The commission observe that the matter of direct recruitment of A.E.’s should also be given priority and directs the board to submit the status report in this regard before the next date of hearing.

“Approved with the condition that instead of earlier formed in 2001 may be asked to give report on five issues mentioned in para-2 of the Memorandum within two months .

As per above decision of the WTMs of the Board a request was made to Chief Engineer (OP) Southcum-Chairman. The requisite report is still awaited from the said committee. In the meantime Hon’ble HPERC has passed the order to disband of the Norms Committeee.

Accordingly, aforesaid matter was examined and placed in WTMs of the Board by circulation and WTMs of the Board has approved to disband the Norms Committee constituted to review the existing norms for maintenance of distribution system/transmission line revenue account and sub/station under the Chairmanship of Chief Engineer(OP)South, Shimla vide office order No.39 dated 20.12.2001 and order No.45 dated 4.11.2004 in pursuance of the direction of HPERC.

The submission made by the Board vide affidavit dated 4-3-09 is as under:-

The Board has filled up 20 posts of AE (Elect) and 5 posts of AE(C/M) on regular basis and 15 posts of AE(E) and 2 posts of AE(C/M) on contract basis during 2008. Apart from above, 1 post of AE(E) against handicapped quota has also been filled up during Feb,2008.

Further, the proposal for filling up 30 posts of AE(E) and 10 posts of AE(C/M) was sent to Principal Secretary (Power) to the Govt. of H.P. vide letter No. HPSEB(Sectt)/101-28/08-59220 dated 19.8.2008 against which approval for filling up of only 6 posts of AE(E) and 2 posts of AE(C/M) has been received from Special Secretary (Power) to the Govt. of H.P. vide letter dated 23.8.2008.The requisition to fill up these posts was submitted to Principal Secretary (Power) to the Govt. of H.P. for taking up the matter with Himachal

Pradesh Public Service Commission to process the case for recruitment of aforesaid AEs on regular basis. The decision of the Govt of H.P. is still awaited.The status in respect of A.Es and J.E.s are as under:-

Year Category Vacancies arisen year-wise

Resul-tant vacan-cies

Posts filled in on direct recruit-ment on regular basis

Cumulative

Total

2007 AE(E) 60 60 60 __AE (C/M) 16 16 16 __JE(E) 299 299 __ __JE(C/M) 92 92 92 __

2008 AE(E) 41 101 66 20AE (C/M) 24 40 33 05JE(E)JE(C/M)

29946

29946

18746

112----

That the details of the proposal sent to H.P. Govt. and approval received from the Govt. with regard to requirement of A.E./J’E is as under;-

Category

Month/Year

Proposal Sent for posts

Approval received

Directions issued vide interim order dated 7-3-09

The board informed that the proposal for filling up 30 posts of AE(E) and 10 posts of AE(C/M)was sent to the Government of H.P.on 19th August,2008 against which approval for filling up of only 6posts of AE(E) and two posts of A.E. (C/M0 has been received . The requirement to fill up the sanctioned posts was further sent by the board to the GOHP, the decision on which is still awaited . Sh P.N. Bhardwaj Consumer representative expressed its great concern over the working system of the Governmentand observed that the matter related to commercial entitiessuch as HPSEB should be cleared up by the govt on priority to smoothen the functioning of these entities . Taking coginzance of the issues , the Commission decided to discuss theis matter with the WTM of the Board

Asstt. Engineer (Elect)

10/2008 30 No. 6 Ns.

Asstt. Engineer (Elect)

10/2008 10 No. 2 No.

Junior Engineer (Civil)

1/2009 20 No. Awaited

11.4h): Material Management (Dir. No. 9.4.15)

The Board informed that all efforts are being made for computerization of store activities by adopting modern material management methods. Data entry in the circle store at Maliana, Mandi and Rampur stand completed

All efforts are being made to adopt modern material management methods to minimize inventories and reduce the supply lags. In this process, computerization of stock inventories in circle level store at Maliana, Mandi and

while it is in progress in the remaining 9 circle level stores.

The Commission observes that the progress made by the Board needs to be speeded up to streamline its inventory management and control systems and the Board should not wait for the implementation of ERP.

Rampur stands completed. Data Entry is in progress for remaining 9 circle level stores (Operation).Asian Devopment Bank (ADB) has sanctioned a loan (90% grant and 10% loan) to the tune of $3M for implementation of Enterprises Resources Planning (ERP) package in HPSEB. Bid documents have already been approved and Bid process has started . Material Management is part of ERP package and will cover Inventory Management in entire HPSEB and will also integrate e-tendering already being implemented through M/s ITI Ltd., New Delhi.

11.4(i): Metering, Billing & Collection Efficiency (Dir. No. 9.4.16)

The Board informed that the pilot project for “Computerized Billing and Energy Accounting” is expected to go live shortly and the Board has also provided interface at its website and about 70,000 consumers of Shimla town are expected to be linked for online energy bill payment and also to view their status of bill, payment and other grievances, by the end of December, 2008. The Board further informed that it is introducing spot billing and exploring the possibility of having payment gateways of other financial institutions.

The Consumer Representative observed that the collection efficiency of the Board is better as compared to the other status but the accuracy of billing is still a gray area, which need to be dealt on priority.

The Commission observes that the Board needs to take effective steps to increase its collection efficiency which presently is approximately 90%. The Commission would encourage remote metering of all large consumers and direct the Board to adopt all modern metering and communication tools to minimize revenue losses.

Consumers of seven Sub-Divisions have already been provided facility for making payment thorough HPSEB’s website. Consumers of all 10 Sub-divisions (approximately 90000) have already been integrated with i-CoSC(Sugam Centre at DC office, Shimla) of HP Government for payment. Consumers of Sub-Division at Solan-1,111, Paonta and Dhaulakuan has already been integrated for payment with respective Suguam Centres at Solan and Paonta. Consumers of all the l 128 Sub-Divisions are expected to be integrated (approximately 11 lakh consumers as and when the rollover of IT package completed.

HPSEB has already implemented an automatic Meter Reading(AMR) on GSM technology covering approximately 350 consumers of BBN area. Scheme to cover Urban Consumers of 16 towns as per 2001 census and 9 more rural areas with significant loads are being submitted to MoP, Gol under Restructure APDRP launched on 19th September 2008. All 3 phase LT and HT Consumers of these areas are being provided with AMR for online metering, billing and energy accounting after ring fencing of the project areas. All these consumers shall further be integrated with IT package for automatic billing with proper interface to avoid human interference.

11.4(j): 400 kV line from Nalagarh to Kunihar & 400 kV sub-station at Kunihar

The Commission observes that the funds were sanctioned by REC way back in the month of August, 2007 for this schemes but the progress reported is very slow.

The loan for providing 220/66 kV, 2x100 MVA S/Stn. At Nalagarh alongwith associated lines already stands sanctioned by REC for an amount of Rs. 6060.43 lac.

and 220 kV Sub-stations at Nalagarh by HPSEB (Dir. No. 9.4.21)

The Commission directs the Board to expedite final decisions on the financial bids (which are stated to have been opened in July,2008) without any further delay.The Chief Accounts Officer, HPSEB shall also apprise the Commission before the date of next hearing about the time lines in processing the file alongwith the fortnightly developments/achievements towards finalisation of the award of the work from the date of opening of financial bids and also about the acquisition/purchase/development of land from the date of release of first loan instalment by the REC for this scheme. The report would serve as a case study w.r.t. decision making processes in the Board.

Direction issued on dated7-3-09”The Chief Accounts Officer, HPSEB stated that he

could not submit before 7th March, 2009 the Investigation report as per the directives of the Commission dated 6.12.2008 and 7.2.2009 due to his involvement with State Assembly Business and his duty in connection with discussions in the Planning Commission, New Delhi. The Commission expresses its concern over the non-serious attitude of the Chief Accounts Officer for not complying with the directions of the Commission within the stipulated time schedule. This tendency lingers on the proceedings unnecessary and the Commission is convinced that the Chief Accounts Officer has willfully contravened the directions of the Commission. The Commission, therefore, decides to initiate a proceeding for imposition of personal fine under Section 142 of the Electricity Act, 2003 on the said Chief Accounts Officer for non-compliance of the directions of the Commission. Keeping in view the principles of natural justice, the Commission would like to afford an opportunity of being heard in person to the said Chief Accounts Officer, as contemplated under sub-regulation (3) of Regulation 62 of the Conduct of Business regulations of the Commission”.

The Pvt. Land for the C/O 220/66 kV, 2x100 MVA S/Stn. at Nalagarh (Nangal Uperia), measuring 121 Bighas 12 Biswa and Govt. land 45 Bighas 03 Biswa has been acquired and the line route for 220 kV line & 66 kV lines has been approved. The PAT NO 1 bid for the C/O 220/66 kV lines on turn-key basis has been opened on 23.3.2009. The work for the construction of 220 & 66 kV sub-stations has been awarded during 2/09 on turnkey basis vide No. DDSS-257(s)/Techno-Vol-I/2008-4607-13 dated 25.2.2009 and vide No. DDSS/SSD-257/(E)/Techno-Vol-I/2008-4614-20 dated 25.2.2009 to M/s Techno Electric & Engg. Co. Ltd, 3 F, Park Plaza (N), 71, Park Street, Kolkata-700016.

The Chief Account Officer of the Board could not prepare the requisite report in stipulated period due to the fact that the relevant record of this work was with the Scrutiny committee, constituted by the Board, for technical evaluation of the bids w.e.f 27-9-08 To 7-2-09 and after that he remained busy with the Vidhan Sabha business for preparation and finalisation of the budget of the Board and accompanied the worthy chairman HPSEB to New Delhi for Planning Commission meeting. The Hon’ble Commission had viewed this seriously and issued Show cause notice for fixing personal penalty on7-3-09

Immediately after coming back from the Planning Commission the Chief Account officer prepared the report on 12-3-09 and which was submitted to the Commission after duly approved by the competent authorities of the Board on dated 20-3-09.

The matter be listed for hearing on 25th April, 2009 at 11.00 AM, alongwith a review of other directions imparted by the Commission in its various tariff orders. The Board is directed to submit the updated status report by 20th April, 2009 positively.”

11.4(k): Justification of REC funded schemes (Rajiv Gandhi Gramin Vidyutikaran Yojna Scheme) and multilateral funding of distribution schemes (Dir. No. 9.4.20)

The Commission expresses its satisfaction over the progress achieved so far and intends to know whether any scheme has been framed by the Board under modified APDRP scheme of GoI.

The Commission directs the Board to submit the updated status on the implementation of RGGVY schemes on a quarterly basis.

The scheme under APDRP during 11th 5 years plan as per Re-structured Guideline of APDRP received from MOP (GOI) is to be framed into two parts for towns more than 10,000 population and high load density rural areas.

Part-A of the scheme relates to I.T. application and is being framed by I.T. Cell under Chief Engineer(P&M). In this context it is submitted that scheme for Shimla town has been prepared and submitted to the Board for its approval. ..After the approval of the Board, this scheme will be placed before the DRC for its approval and then will be posed to M/S PFC Ltd for funding.

Similarly, the Schemes for Nahan, Poanta and Kala-Amb are under preparation and are likely to be submitted to the Board during April/May, 2009.

Part-B of the scheme will cover renovation and modernization of 11 kV distribution sub station reconductring of HT/LT lines, HVDS. etc. for which the field units have been requested to submit the scheme and the same are still under preparation.

The RGGVY scheme in respect of Districts namely Sirmour, Bilaspur, Shimla, Una, Mandi, Hamirpur, Kangra, Solan & Chamba have been sanctioned during February, 2009 for Rs.307.13 crore. The necessary award in respect of all the Blocks of these 9 Districts for the works under RGGVY have been placed during February & March, 2009.

The tenders for remaining 3 Districts namely Lahaul &

Spiti, Kinnaur & Kullu are under finalization.

The works in 6 Blocks of Chamba District already awarded in 10th plan and are under execution.

11.4(l): e-governance (Dir. No. 10.4.20{a})

The status report of e-governance in HPSEB submitted by the Board was examined by the Commission and the Commission appreciates the initiatives taken by the Board in this regard but is of the view that more efforts are required for better generation of data and accurate and timely MIS.

More efforts are being done to improve e-governance in HPSEB. A project for Enterprise Resource Planning(ERP)Package being partially funded by Asian Development Bank( ADB) is also in pipe line for implementation in HPSEB. A consultant from MDI Gurgaon has already been appointed by HPSEB and Contract Agreement signed for assistance of ERP Package implementation. Documentation has already been implemented and Bid Document stands approved by ADB with some minor modifications. The bid process will start as and when the approval is received. With the implementation of ERP package in HPSEB , all functions of the Board would be automated except for Distribution management System(DMS)SCADA which is expected to be undertaken under Restructured APDRP-II separately. MIS will be available at every level with increased satisfaction level of consumers regarding billing, payment, immediate Redressal of grievances, and optimization of distribution system being undertaken in IT package.

11.4(m): Scheduling of Baspa-II (Dir No. 10.4.29 {c})

The Board informed that the data link from Baspa II HEP to the planned stations has been established recently. The Commission directs the Board to submit the updated status at the next hearing.

Earlier, there were some minor deficiencies in the data link established from Baspa-II HEP but since 22nd Jan, 2009, the Baspa data has completely stopped. No action has been taken by PGCIL for connectivity of speech of Baspa-II HEP with SLDC Shimla so far. The matter shall be discussed with Power Grid and resolved in the next USMG (Unified Scheme Monitoring Group) meeting to be held at NRPC, New Delhi, This meeting was initially fixed on 16-4-09 but later on it has been postponed. The matter will be sorted out being a Appropriate Forum.as and when the meeting is held.

Directions of Tariff Order FY-2006

11.5(a): Declining Generation of Board’s own stations (Dir. No. 10.5.2)

Direction issued vide interim order dated 6-12-08

The Comprehensive report on the declining generation of Board’s own stations, submitted by the Board on 9.7.2008, was examined by the Commission and directions were conveyed to the Board vide Interim Order dated 15.11.2008 for submitting the point-wise reply to the Commission by 31st December, 2008.The Commission directs the Board to submit the point-wise reply as sought for vide above mentioned Interim Order and that the Chief Engineer (Generation) HPSEB be present on the next date of hearing to explain the issues likely to arise there from.

Direction issued on dated !3-3-09 vide Executive

Director (TFA) of HPERC for compliance of the

following :-

1. The revised report is incomplete as the projects under the Operation Wing of the Board as per Table 1.A(P3) of the report have not been covered. The Board should also include the performance and relevant issues concerning these projects in the report.

2. The contents of section 1.11.0 are not as per the conclusion drawn from Annexure-C, as the generation achieved during 1997 was less than the target. For the years, 1993, 2004, 2005 and 2007 also the same holds good although the difference was only marginal.

3. The details furnished in the reply to the observations (Annexure-A) are by and large related to the works executed/proposed as per Annexure-A of the report. Action taken on some of the specific recommendations made in

The reply on the observation of the Hon’ble Commission had been submitted on dated 23-1-09

1. It is submitted that the field offices of operation wings have been supplied a copy of the report prepared by the Chief Engineer (GEN) on the declining generation of board’s own project for their guidance please. It is therefore requested that a time period of three months time may kindly be allowed for preparation of the report on the declining generation of projects under Operation Wing

2. For Sr No 2 to 4, the requisite reply on the observation of the Hon’ble Commission has been prepared and is being submitted to the Hon’ble Commission

various sections of the report is not covered in the reply. All pertinent recommendations made in the report should be covered in the reply with timeframe for completion of the proposed activity for effective monitoring.

4. Though the Board has accepted most of the observations made by HPERC on the earlier report, the progress on some of these aspects is yet to be reported. The time frame for implementing the various activities also needs to be fixed, for which the Board should submit the time frame for each activity to the Commission.

11.5(b): Procurement of Long Term Power (Dir. No. 10.5.3 & 10.5.4)

The Board informed that some efforts have been made by them to mitigate the energy deficits during winter months through banking from Delhi, Haryana and Punjab and has devised the power procurement strategies to meet the shortages in the future years. The consumer representative Sh. P.N. Bhardwaj, wrongly advocated the need for demand side management to overcome the prevailing shortages of energy. The Commission endorses the views of the consumer representative and feels that Demand Side Management needs to be encouraged through suitable legislation and the systems being followed by other utilities need to be studied and transposed into our system.

It was informed by the Board that certain initiatives have also been taken on demand side management like introducing CFL bulbs in the State but other areas are yet to be explored. The Commission directs the Board to constitute a Task Group with S.E. incharge of Demand Side Management as the nodal officer to study Demand Side Management programmes in the State and to coordinate with other Government departments to incentivise them for taking energy saving measures including setting up of legislation on

As a step towards Demand Side Management to mitigate the energy shortages in the state CFLs (2 of 20 watt & 2 of 15 watt) to each domestic consumer (there are 15,78,700 domestic consumers ending December, 2008) have been distributed throughout the state. The energy saving is expected to be 278 MU per annum.

It is brought to the notice of Hon’ble Commission that Govt. of India has already enforced Energy Conservation Act, 2001 (52 of 2001). HPSEB under the provision of this Act has drafted a notification on measures to be enforced regarding Energy Conservation and submitted to the Govt. of H.P. under the power conferred in section 18 of the said Act. Further, it is expected that Govt. of H.P. shall issue the notification with the following provisions:-

1. Mandatory use of Compact Fluorescent Lamps (CLFs) and T-5 (28 watt) Tube Lights.

2. Mandatory use of Energy Efficient Street Lights.3. Mandatory use of Solar Water Heating Systems.4. Mandatory use of ISI/BIS marked Motor Pump Sets, Power

Capacitor, Foot/Reflex valves in agriculture Sector.5. Promotion of Energy Efficient Building Design.

the issue. The action taken report in this regard be submitted to the Commission on the next date of hearing.

The Commission advises the Board to increase the quantum of banking keeping in mind the likely cap non trading to be imposed by CERC, and it further directs the Board to ensure that the setting up/augmentation of the transmission system for evacuating power from projects being set up by the IPPs, be expedited to meet the shortage.

As per the advice of the Hon’ble Commission, the Board will go in for energy banking arrangement to the extent permissible in order to mitigate the energy shortages during the winter months.

As regarding evacuating power from HEPs, it is submitted that Transmission Scheme amounting to Rs. 4500 crore for creating the transmission network for evacuation of power from HEPs has been mooted. The detailed plan has been submitted to the Executive Director (TA) of HPERC vide letter dated 28/3/09by the C.E.(SP) as per detail given below:-

1. Comprehensive area wise plan Rs 1136 Crores for evacuation of power from small HEP

3. Comprehensive Basin wise Intra State Transmission Plan for HP Rs 2683 Crores Further, it is submitted that the above cited works will now be under taken by H.P. Transmission Corporation

11..5(c): High Voltage Distribution System (Dir. No. 10.5.5)

The Board informed that the requisite guidelines have been issued to the field units for preparing the requisite data and L.D. maps under the approved plan. The Commission directs the Board to submit the implementation status under this direction at quarterly intervals.

The Commission has approved the comprehensive plan for HVDS vide its order dated 1.8.2008 amounting to Rs 165.30 crore.. The field units have been requested for intimating the data /LD maps which are under preparation. In addition, field units have also been requested to prepare the System Improvement Scheme of Towns as per restructured APDRP

guidelines for 11th Five Year Plan received form MOP(GOI).

11.5(d): Installation of Single Phase transformers (Dir. No. 10.5.6)

The Commission observes that published progress has been reported by the Board after May, 2008. The Commission directs the Board to submit the updated status.

Out of total of 78 single Phase transformers to be installed , 51 single phase transformers (12 in Dalhousie, 23 in Kangra, 7 in Hamirpur & 9 in Nahan circle)have been installed and work to install 6 No. 16 KVA, 11/0.230 KV sub stations under operation circle Mandi is in progress.

11.5(e): Ratio of single and two phase lines to three phase L.T. Lines (Dir. No. 10.5.7)

The Board informed that the schemes for all the 12 districts amounting to Rs. 205.259 Cr. Have been sanctioned under RGGVY. The Commission is satisfied with the reported progress and directs the Board to report status of the progress achieved in this regard on quarterly basis.

The RGGVY scheme in respect of Districts namely Sirmour, Bilaspur, Shimla, Una, Mandi, Hamirpur, Kangra, Solan & Chamba have been sanctioned during February, 2009 amounting to Rs.307.13 crore. The necessary award in respect of all the Blocks of these 9 Districts for the works under RGGVY have been placed during February & March, 2009.

The tender for remaining 3 Districts namely Lahaul & Spiti, Kinnaur & Kullu is under finalization.

The works in 6 Block of Chamba District already awarded in 10th Plan and same are under progress.

11.5(f): Interface Metering (Dir. No. 10.5.9)

The report submitted by the Board reveals the status is same as that reported by the Board vide their submission dated 22nd May, 2008. The Board assured that the remaining meters would be installed by 31st

January, 2009.

The concerned Superintending Engineers (Op) have furnished the certificate that 10 No. remaining interface meters have now been installed as per the details given below :-Hamirpur Circle 3Bilaspur Circle 2 Kullu Circle 1Rampur Circle 1Solan Circle 3

With the installation of the above interface meters , the Board had achieved 100% progress on the installation of interface meters on the requisite feeders as directed by the Hon.ble `Commission.

11.5(g): Replacement of defective/ dead stop meters (Dir No. 10.5.10).

The Commission observes that a comparison with the previous submission made by the Board on this account reveals that despite regular replacement of defective and dead stop meters by the Board, the number of meters to be replaced is going up.

The commission directs the Board to make sincere efforts to timely replace the defective meters to avoid revenue loss and initiate measures to ensure that only quality meters are procured.

The Board is making sincere efforts to timely replace the dead stop and defective meters regularly to avoid any revenue loss to the Board. However, this is an ongoing process and field offices of the Board are already replacing the dead stop/defective meters on top priority.

The meters now procured by the Board are in accordance with the guidelines issued by C.E.A.

11.5(h): Consumer Services for senior citizens (Dir. No. 10.5.12)

The Board informed that it is giving wide publicity through newspapers and taking steps to implement the directions imparted by the Commission. Reacting to this statement Sh. P.N. Bhardwaj, Consumer Representative point out that necessary orders/directions issued by the Board are not percolating to the field units and sincere efforts are required to be made at all levels.

The Commission has examined the affidavits submitted by the Board from the Chief Engineers of Operation Circles and observes that the affidavit from Chief Engineer (Central Zone) is yet to be submitted. The Commission directs the Board to continue with its efforts to implement this direction in letter and spirit.

It is submitted that the affidavit of Chief Engineers (Op) (C/Z) will be submitted within a week. However, it is submitted that the affidavits of Concerned S.E.s have already been submitted to the Hon’ble Commission.

Further, it is submitted that in order to give the adequate facilities to the Sr. Citizens , the Board has already imparted directions to the field units to:-

i) Provide separate counter/queue for the senior citizens at bill collection centres.

. ii) Assist the Sr. Citizens for any difficulty in completing the

codal formalities and in the bill payment.

iii) Provide sitting arrangements and drinking water facilities to the Sr. Citizens.

The Board assured the Hon’ble Commission that it will continue with its efforts to provide adequate facilities to the Sr. Citizens.

11.5(i): Unmanning of sub-stations (Dir. No. 10.5.13)

The Commission appreciates the efforts made by the Board for extending this process to 66 kV sub-stations. The Commission directs the Board to keep up its efforts and set up all new sub-stations on un-manned mode and convert the existing sub-stations to un-manned in a phased manner.

In addition to the progress of unmanned substations of 66KV already reported, it is further submitted that the 33/11 KV sub stations (unmanned) at Panthaghati completed and work of 33/11 KV(unmanned) sub station Dhami is in progress and is likely to be completed by June, 2009. It is further added that 21 No. New 33/11kV un-manned S/stns are proposed to be provided during 11th Plan.

11.5(k): Audit (Dir No. 10.5.15)

The Commission examined the list of the officers/officials shifted from high revenue generation areas to other areas and observes that most of the officials transferred have been moved from one industrial area to another, which is against the spirit of the direction. The Commission directs the Board to take further affirmative action to streamline the whole system and would discuss this matter with the WTM of the Board.

The Board has now approved the transfer policy/guidelines on18-09-08 that no officer/official be allowed to work in industrial area for more than three years However, he can be considered again after serving in non-industrial area for minimum three years except on administrative grounds/public interest/exigencies of Board’s works

In accordance with the above transfer policy, no officer has been shifted from one industrial area to other industrial area but has been posted in the Head Offices/Non-Industrial Areas

11.5(l): O&M of generation projects in Tribal Areas (Dir No. 10.5.19)

The Board informed that the matter concerning the reimbursement of Rs. 27.00 crores on account of the difference between actual generation tariff and the tariff fixed by the Commission is pending for decision at the State Government level for the last more than one year.

The Commission directs the Board to pursue the matter and report regularly.

The Principal Secretary (MPP& Power) Govt. of H.P.Shimla vide this office letter No. HPSEB(Sectt)410-HPERC/2007-08-68292-93 dated 29.9.07 even file No. 83183-84 dated 28.11.2007,5418-19 dated 11.4.2008 and 130736 dated 30.1.09. was requested to pursue the matter with the Tribal Deptt. For the reimbursement of Rs. 27.00 crores as difference between the Generation Tariff determined by the Board and the Tariff fixed by the Commission for these projects in the Tribal Area.

The Principal Secretary (Power) Govt. of H.P. had taken up the matter with the Principal Secretary(TD) to Govt. of H.P. for the reimbursement of Rs.27.00 crore to HPSEB.

The Commissioner (Tribal Development) Bijlani House Shimla-2 vide letter dated 5.3.2009 has desired some information in this regard. The concerned offices have accordingly been requested vide letter dated 21.3.2009 to supply the requisite information.

11.5(m): Larji Project (Dir No. 9.4.23.1)

The Commission is dealing with this matter separately. This case is being dealt separately by the Hon’ble Commission.

Directions of Tariff Order FY-2007

11.6(a): Decision making Process (Dir No. 12.4.a)

The Commission would discuss this matter with the WTM of the Board separately.

Issue To be discussed with WTM

11.6(b): Accelerated programme for renovation, modernization and up-gradation (Dir. No. 12.4b)

The Commission directs the Board to evaluate the cost benefit of the proposed RMU of Giri Power House especially keeping in mind its own report against direction No. 11.77 (Declining Generation of Board’s own stations), concluding therein that this project was over-rated. Further, the Commission directs that the timelines be framed for completion of ongoing RMU works and to submit the status of proposed RMU for Bhaba Project.

The Scheme for RM & LE works of Giri P/H based on final reports submitted by consultant has been framed for Rs. 48.48 crore and is submitted to Board for A/A. in 10/2008. The A/A is yet to be accorded.

The machine No. IV of Bassi P/H has been dismantled and sent for reverse engineering at the works of M/s VA Tech, Bhopal. Model test on turbine has been completed.

The new 4 No. runners have been received at site on 19-1-09.

The spare runner has also been dispatched from Switerzerland. Inspection of 2 No. MIV(s) has been conducted w.e.f. 16-2-09 to 18-2-09at Polland and dispatch clearance given on 3-3-09 after checking and verification of the test reports.

The inspection of four number nozzles & deflector assemblies and four number governor cubicles has been carried out and received at site.

The inspection of static excitation equipment ( 4 No.) has been done in Feb, 2009 and material has been received at site.The inspection of CT&PT (46 No.) has been carried out in Jan, 2009, dispatch instruction issued.

The inspection of Governor and Turbine control panels (4 No.) has been carried out in Feb, 2009 and dispatch instruction issued.

The inspection of generator Stator Segment and pole assemblies has been conducted on 17.3.2009.

11.6(c):Debt stainability Study (Dir.

The Commission observes that the Board needs to adopt medium/long term measures to restructure loans

The Board has already restructured various long term loans amounting to Rs 827.81Crore during the year and there is no

No. 12.4c) and seek assistance from Government of Himachal Pradesh to tide over the debt servicing crisis. The Commission would also discuss this issue separately with the WTM of the Board.

scope to restructure these loans. As regards debt serving, the Board is now regularly serving the debt during 2008-09 and no further loans were taken to service the debt. However, the matter has also been referred to the State Govt for providing fiscal assistance but their response is still awaited.

11.6(d): Manpower Planning (Dir. No. 12.4.d)

The Commission observes that no proper justification has been given by the Board for non-submission of the report of the Committee constituted under the Chairmanship of Member (Technical), to carry out manpower planning studies within the stipulated time schedule. The Commission directs Member (Admn) and Secretary of the Board to jointly address this issued and submit a report on this to the Commission by 31 st

January, 2009.

The Board constituted a committee for giving report on manpower planning in HPSEB vide order No. HPSEB (Sectt)/6-1/HPERC- Matters Vol-VIII/07-75674-894 dated 27.10.2007. The committee vide letter No. HPSEB (Sectt)/HRD/2-23 (Misc.)/2008-60393-405 dated 20.8.08 has submitted certain suggestions regarding utilization of existing manpower in HPSEB. However, final report is awaited from the committee. The action on suggestion is under process

Further, on receipt of the approval from the H.P.Govt. for filling up the posts of JEs (E) & (C/M), it was decided by the Board that 236 posts of JE(E) & 46 posts of JEs (C/M) may be filled on regular basis by following policy of the Govt. i.e. 50% recruitment on batch wise basis and 50% on merit basis through HPSSSB Hamirpur. The Chief Engineer (Op) North, Dharamshala and Chief Engineer (Project) Shimla being the respective cadre controlling authority were directed accordingly to take further action in the matter. The Board has issued appointment orders to about 122 candidates (JE Civil) selected on batch wise basis out of which 112 have joined. The matter to fill up the above remaining posts is till under process in the O/O Chief Engineer (Project), Shimla and O/O Secretary HPSSSB, Hamirpur. Moreover 25 posts of AE (C)/(E) on regular basis and 17 on contract basis have been filled in and request for filling up of 8 posts of AE ( C/E), has been made to the Hon’ble Commission.

Moreover, the Board has filled up following back log posts of handicapped persons against 3% reservations as per direction received from H.P. Govt.

1. JE(C/) = 12. JE(E) = 73. Electrician = 1

4. Electrician (P/H) = 15. JDM = 16. Helper (S/Stn.) = 157. Helper(P/H) = 078. Helper(H/M) = 039. Gauge Reader =0110. T/Mate =97 Total:- 134

Apart from above, the Board has also decided to fill up following critical posts of field technical staff as trainees for a contractual period of two years against direct recruitment quota.

1. Lineman = 100

2. S.S.A = 050

3. Electrician = 035

4. Electrician(P/H) = 015Total:- 200

The above posts are required to be filled up 50% on batch wise basis and 50% on merit basis as per Govt. pattern. The process of 50% batch wise recruitment has already been completed and appointment orders have accordingly been issued, whereas the matter for merit wise recruitment is under process in the O/O the Chief Engineer (OP)North, HPSEB, Dharamshala.

11.6(e): Rationalization of staff, redeployment, training & specialization in key activities(Dir.No.12.4e)

The Commission observes that no sincere efforts has been made by the Board to comply with the direction. The commission directs Member(Admn) and secretary of the board to submit a report on this by 31st January, 2009.

In this regard, it is intimated that a meeting under Chairmanship of Member (Admn) was held on 1.8.2008 and 21.8.2008 and in which all the Chief Engineers/Managing Director/CAO of HPSEB participated. In this meeting, job profile of employees and proper utilization of manpower available with the Board was discussed. The minutes of the meeting have been circulated to all the Chief Engineer/Managing Director BVPC Ltd./CAO vide letter No.

HPSEB (Sectt)/HRD-2-23(Misc.)/2008-55162-55212 dated 6.8.2008 and dated 28.8.2008. Accordingly, all the Chief Engineers have submitted the proposal for rationalization of staff/re-deployment, training of staff on need basis and matter is under examination in the Admn. .Wing of the Board Sectt.

It is intimated that in order to rationalization of staff/ redeployment of staff on need basis, the Board has provided 4 posts of Law Officers Gr.I in the office of Chief Engineer (OP) South, HPSEB, Shimla, Chief Engineer (OP) North, Dharamshala, Chief Engineer, Central Zone, Mandi and Chief Engineer (Comm.), HPSEB, Shimla vide office order No.3 HPSEB (Sectt) /2008 dated 3.1.2009 These posts are being filled in by re-deploying from the available existing incumbents according to their qualification. Other proposals submitted by the Chief Engineers on manpower planning/rationalization of staff is under process of examination in the Board.

So far as imparting of training to the Officers and staff of this organization is concerned, it may be mentioned that the Board has already evolved a Capacity Building Project which was sent for funding to the Government of India Department of Personnel and Training through the Pr. Secretary Power to the Govt. of H.P. with respect to above. The commitment to release funds for the project stands made by the G.O.I. efforts are afoot to get tied-up with the Training Institutes/ Organizations for getting the trainings imparted to the staff under the said project. Yet, in the mean time, the trainings are continued to be imparted to the personnel of the Board on need basis by the HPSEB

In addition to above, the following matters are already under process:-

1. To fill up vacant post of Drivers out of those already working against various lower posts and also full-fill the requirement of R&P Rules for the post of Drivers in HPSEB.

2. The willingness of officials working against various lower posts and have possessed ITI certificate in the Trade of Electrician are being collected to examine their suitability for re-deployment against the direct recruitment vacant post of Lineman, SSA, Electrician etc.

3 Besides above during 2003-04, 40 posts of JE(E), 11 posts of JE(C/M)and during 2004-05, 28 . posts of JDM, during 2006- 07, 6 posts of Surveyor have been filled up.

4 In this context, it is submitted that the directions to reduce the employees costs as given by the HPERC are not applicable to the categories of field Technical Staff and Engineers.

5. During 2004-05, one post of JDM has been filled on compassionate grounds (on regular basis) and during 2006-07, two posts of JE(E) & one post . JE(C/M) have been filled on daily wages.

11.6 (f): Change in R&P Rules (Dir No. 12.4.f)

The Commission is not satisfied with the reported status. The Commission would discuss this matter with the WTM of the board.

The HPSEB repealed and amended the R&P Regulates of various categories. A gist of changes made has been already been submitted to the Hon’ble Commission in the compliance of direction submitted on 4-12-08

However, the Hon’ble Commission is not satisfied and accordingly decided to discuss this issue with the WTM of the Board.

11.6(g): Reduction of Commercial Losses (Dir No. 12.4.g)

The Commission observes that the manpower deployed with the enforcement unit has depleted considerably since this activity was placed with Member (F&A). Therefore, the board is directed to submit a status report on Manpower deployed, when this activity was under Member(O) and the present deployment by the next date of hearing.

The functional control of Flying Squad unit has been placed under the control of Member (F&A) in August, 2007. Immediately in order to strengthen the Enforcement Wing, the Board has already decided to set up an Additional Flying –Cum- Mobile Meter Testing Unit under Enforcement Wing of the Board and as such, there is no depletion of the Flying Squad Unit.However the status of the Manpower deployed when this

activity was under Member(O) and the present deployment is as under:-

Manpower Deployed Prior to August 2007 (under the control of Member (OP)

Sr Executive Engineers (Flying Squad) 3Junior Engineer (Flying Squad) 3

Manpower Deployed After August 2007 (under the control of Member (F&A)Sr Executive Engineers (Flying Squad) 3Junior Engineer (Flying Squad) 3

Mobile Meter Testing unit

Sr Executive Engineers) 1Assistant Engineer 1Junior Engineer 1

11.6 (i): Determination of Generation Tariff of Board’s own projects (Dir. No. 12.4.l)

The commission had determined the generation tariff based on whatever limited information was filed by the board for Financial year 2008-09.The commission would consider the information to be submitted by the board with the MYT petition and would issue appropriate orders accordingly.

The Revised tariff petition for Larji and Khauli, HEPs has been filed with the Hon’ble Commission on 5th Feburary,2009 along with tariff petitions of Gaj Banner & Ghanvi Powerhouses commissioned after1990

11.6(j)(i): Provide Toll free numbers and Call Centres for complaint redressal (Dir. No. 12.4m(i).

The Board has informed that Toll free number allotted to the Board for the centralized call centre has been made functional since 29th September, 2008with data in respect of energy bills. Payments and complaint registration of 5 Sub-divisions of Shimla city and would be extended to 118 Sub-divisions within next 12 months. The Commission directs that the wide publicity of the allotted toll free no be given through newspapers, radio and television and directs the Board to submit the updated status on the next hearing.

The call center with toll free number 1800-180-8060(earlier 1260 but changes due to operational problem of calls within Shimla only on 25th February 2009) is functional since 29/09/2008. Earlier Toll Free Number 1260 was made functional since 29/09/2008. Earlier, due to some operational problem of non-accessibility out side Shimla, the same was discontinued w.e.f. 25.02.2009. The consumers can get information about their energy bills, payments and also register complaints/ grievances on Toll Free Number 1800-180-8060 either Through Interactive Voice Response System (IVRS) or direct to call agents. Call Center can cater to consumers with backend data in respect of energy bills, payments and complaint registration in respect of ten Sub-Divisions covered under Pilot

Project. Consumers outside Shimla town can register their technical complaints/grievances through this toll free number.

Balance 122 Sub-Divisions covered in IT package shall be integrated with data and call center as and when integrated. under rollover expected to be integrated within next 12 months.

11.6(j)(iii): Creation of separate Protection Unit & separate O&M Wing for the existing generating stations (Dir. No. 12.4 m(iii).

The Commission expresses its concern on the lacklustre approach being adopted by the Board to comply with the this direction and direct the Board to submit the structure/design of the proposed unit/wing to the Commission by 31st January, 2009 and to expedite the decision pending with the Board on top priority.

The proposal for the creation of Protection Circle is under active consideration of the Board.

11.6(j)(iv): Reduction in inventories and computerized material management with connectivity with all stores (Dir. No. 12.4 m(iv).

The commission directs that this direction be clubbed with direction no 11.4(h)—Material Management.

The data entry at 9 out of 12 central stores is still in progress. The data shall be integrated at central level in data centre under IT project and shall be available for CE (MM) besides for Management.

Further, under IT package, the stores available with the JEs in operation Sub-Divisions are also being linked and centralized MIS will be available for better material management.

Asian Development Bank (ADB) has sanctioned a loan (90% grant and 10% loan) to the tune of $3M for implementation of Enterprise Resource Planning (ERP) package in HPSEB. Bid Document has already been approved and Bid process is expected to start. Material Management is part of ERP package and will cover Inventory Management in entire HPSEB and will also integrate e-tendering already being implemented through M/S ITI Limited, New Delhi.

11.6(j)(v): To delegate power to Chief Engineers for

The Commission observes that effective delegation is lacking and therefore this matter would be discussed with the Whole Time Members of the Board.

It is submitted that the power has already been delegated vide order endst. No.HPSEB(Sectt)/393/(M)/82-51750-908 dated 13.8.82 . However, during period of ban imposed by the H.P.

transfer of employees within their area of operation (Dir. No. 12.4m(v).

Govt., the transfers are required to be made on the approval of the Hon’ble C.M.

The Hon’ble Commission, however observe that effective delegation is lacking and, therefore, decided that this matter would be discussed with the Whole Time Members of the Board.

11.6(j)(vi): Invest its corpus of GPF of the employees over the next three years in higher paying instruments so that the employees interests are safeguarded (Dir. No. 12.4m (vi).

The Commission directs the Board to submit details of how the GPF corpus is being invested and how much is the remaining un-invested gap.

In this regard, it is submitted that Board has decided to invest a sum of Rs. 5.67 Cr. per month to reduce the gap of Rs. 204.15 Crore between GPF subscription and investment. So far a sum of Rs. 170.10 Crore w.e.f. 10/2006 to 3/2009 has been invested. by the Board to abridge the gap between GPF accumulation &GPF investment.

11.6(j)(vii): Trading Strategies and systems (Direction No. 12.5 (a)

The Commission had earlier directed the Board to factor in the implication of the case with the Hon’ble Supreme Court filed against GRIDCO. However, the case has since been disposed off by the Hon’ble Supreme Court but now the Board needs to work out the likely impact on trading, keeping in mind the likely capping of rates, by CERC.

The proposal mooted by the CERC Staff for capping the rates of traded power has not been approved by Hon’ble CERC. Moreover, there shall hardly be any surplus power available with HPSEB for trading after meeting its energy banking obligations.

11.6(j)(viii): Best Practices for Restructuring the project implementation units of the Board and its Special Purpose Vehicles Companies (SPVs) (Direction No. 12.5(b).

The Commission would discuss this matter with the W.T.M of the Board.

The directives of the Hon’ble Commission for studying the practices of Navratna PSUs and their implementation are being given due consideration.

For major reforms, the PSUs such as NTPC, NHPC and SJVNL have been contacted for forwarding the details of their set up and working procedures. Only the response of NHPC has been received which is under study and the response from others PSUs is still awaited.

However, in certain points where the clarification is available,

the Board has adopted these in its working especially in BVPCL. The office of the project head has been set up as Centralized Unit and project head has been given additional administrative and financial powers.

11.6(j)(ix): Transmission network in the State (Direction No. 12.5 (e).

The Commission feels that the T&D schemes for creation of transmission network for evacuation of power from small HEPs, needs to be undertaken on top priority. This matter would be discussed with the WTM of the Board.

The proposal for EAP funding is under consideration of the Board.

The T&D schemes amounting to Rs. 423 Cr. for creation of transmission network for evacuation of power from small HEPs in Kullu and Chamba areas are being posed to REC for bridge loan. The REC Authorities during their visit on 30-3-09 have confirmed that the loan will be released during the month of April/May,2009

11.7: Directions of Tariff Order FY-08Unbundling Costs (Dir. No. 12.3)

The Commission has been directing the Board to segregate its costs various functions of Generation, Transmission and Distribution. The exercise has been conducted and reported by the Board but without adequate background work and a transparent and consistent methodology. In light of the above, there is a requirement to update the existing Accounts Manual incorporating the new statutory and regulatory requirements, new accounting procedures and develop separate Accounts Manuals. The broad scope of work is as follows:

a) Study the existing accounting system, identify process weaknesses and suggest improvements to meet various statutory and regulatory requirements. The existing accounting systems needs to be studied to understand the flow of information and documents for the various transactions. The study should include studying applicable statutes, internal control procedures w.r.t. financial reconciliations, billing and collection, requirements of financial management information systems (MIS) and training of officers.

So far as direction of Regulatory Commission regarding segregation of its cost under various functions of Generation, Transmission and Distribution is concerned, the Board has already engaged a Retainer Consultant and he has already completed most of the exercise till March 2007 and thereafter the Board has allowed him two months time for segregation of these costs upto March 2008. As regards requirements to update the existing accounting manual incorporating the new statutory and regulatory requirements, new accounting procedures and to develop a separate accounts manual the point wise information is given as under:

(a) HPSEB is in the process of implementation of Enterprise Resource Planning (ERP) package covering Financial Accounting, Human Resource Management (HRM) including Payroll, Material Management, Project Management, Maintenance Management and Availability Based Tariff (ABT). Asian Development Bank (ADB) has sanctioned a loan (90% grant and 10% loan) to the tune of US $ 3M under Himachal Pradesh Clean Energy Development Investment Program against Loan No. 2461 IND for ERP implementation in HPSEB.

HPSEB has also appointed a consultant for Bid Process Management and Project Implementation Monitoring for ERP

b) Develop detailed Accounting Manuals and modifications to the Chart of Accounts (CoA). Activities like (i) Cash and Bank – Treasury Functioning, (ii) Employees Cost related jobs (iii) Purchase and sale of power (iv) Material/ Stock (v) Consolidation of Accounts and Budget (vi) Costing (vii) Financial MIS should be covered in the new manuals.

project. The Bid Documents (BDs) have already been approved by the Board and ADB. The bid process has started by insertion of IFB in Newspapers on 4th May, 2009 after approval of the Election Commission of India conveyed by department of Economic Affairs (DEA) under Ministry of Finance (MoF), Government of India. The sale of BDs is due from 18th May, 2009, pre-paid conference is due on 16th June and offers are due to be received and opened on 1st July, 2009. The project is expected to be completed by January, 2012.

The functional Requirement Study (FRS) has already been carried out by the Consultant for HPSEB. The vendor for ERP project will further prepare detailed System Requirement Study of each module under ERP and customize the ERP software. Extensive training at each level is part of the scope of the contract.

Central MIS will also be available under this project. Billing and Collection is part of the IT package already awarded to M/s HCL Infosystems and will be integrated with ERP package at Central level at data centre for consolidated MIS. Further, under Restructured APDRP launched by GoI, a Data Warehousing (DW) and Business Intelligence (BI) solution has been proposed at data centre under DPR for Shimla town which will be integrated with all legacy applications/databases including IT, GIS and upcoming ERP package for central MIS and Decision Support System (DSS).

b) So far as developing detailed accounting manuals and modifications to existing chart of accounts is concerned, it is stated that the existing chart of accounts applicable in the Board has been prescribed by the Central Electricity Authority and is uniform all over the State Electricity Boards through out the country and the Board can not deviate from the procedure prescribed by the Central Electricity Authority. The cash and bank functions, employees cost related jobs material/ stock and the consolidation of Annual Accounts including costing are already covered therein and the Board can not deviate at its own from the prescribed formats. As regards purchase and sale of power Hon’ble Regulatory Commission is separately developing

c) Training to officers of Finance and Accounts Wing - Based on revisions in the Accounting Manuals, accounting policies, procedures, chart of accounts and formats, training to all officials at corporate and unit levels needs to be imparted. Training should be done at the corporate office. This module should include development of training materials, presentations, case studies and examples.

Distribution and Supply Codes for the licensees and the same are to be followed by the Board in place of existing Sales Manual Vol-I and II and Manual of Instructions, as such at present there is no scope of modification in these Manuals, as suggested by the Regulatory Commission. However in order to improve the efficiency by computerisation/ modernisation the Board has already engaged a consultant to develop ERP solutions for the Board against the World Bank Aided scheme.

c) So far as the training of F&A Wing officers based upon the existing manual is concerned. the Board is already providing training of the officers and staff from time to time at various levels including corporate offices.

Data base management & Management Information System (MIS) (Dir. No. 12.4)

In spite of the regulatory regime being in place for more than six years in the State of Himachal Pradesh, the quality of data provided by the Board remains an issue. For handling voluminous data across circles/divisions on a month to month basis it is essential to have an IT based system for storing and retrieving data as and when required. In view of the above, Commission directs the Board to:

a) Develop a standardised computerized database to handle all performance data related to its operations.

b) Develop standardised information requirement formats for capturing data across consumer categories and across circles/divisions for the purpose of monitoring and review. Ensuring that multiplicity of information and sources do not exist in the system.

c) Generate MIS, which will enable it to provide

Under IT project awarded to M/s HCL by HPSEB, the following activities are being covered under pilot project.

1. Standardized computerized data base related to all operations of a Sub-Division will be maintained.

2. All the activities of operation Sub-Division shall be automated.

3. Centralized MS will be available at Sub-Division, Division, Circle, CE and head office level.

4. All the reports shall be standardized and will contain the consistent information.

The pilot covering ten Sub-Divisions of City Electrical Division and Electrical Division. No.1 has been commissioned. Hon’ble Chief Minister Himachal Pradesh inaugurated Data/Call Center and payment KIOSK on 25.02.2009.

In part-2 of the project, 122 Sub-Divisions under 22 Divisions of 11 Operation Circles will be covered in 6 to 12 months

consistent and detailed information for actionable decisions.

d) Submit a report on standardised formats developed and procedures put in place to collect and process the data, by 30 June 2007.

thereafter.

Asian Development Bank (ADB) has sanctioned a loan (90% grant and 10% loan) to the tune of $3M for implementation of Enterprises Resource Planning (ERP) package in HPSEB. Bid Document has already been approved and Bid process is expected to start. Balance functions of HPSEB like Financial Accounting, Human Resource Management including payroll, Material Management, Maintenance Management, Availability Based Tariff and Executive Dash Boards for MS shall be available for management as well as all Administrative Heads.

Further, HPSEB is including Business Intelligence tools in Scheme for Restructured APDRP which will sit over all the IT projects centrally and will fetch data from any database format including from any legacy system for decision support system in the organization. This will further improve the decision level and also provide automatic reports as and when desired.

Quality of supply (Dir No. 12.5)

The Commission feels the necessity to benchmark quality of supply parameters and link the quality of supply to returns earned by the licensee. The parameters for monitoring and tracking would be based on the technical and customer service parameters, as detailed in Standards of Performance (SoP) for Distribution and Transmission licensees.The Commission directs the Board to submit compliance reports as per the regulation. The Commission directs the Board to conduct a baseline study for quality parameters. The Board, as required under the SoP regulation, shall formulate all the requisite formats of reporting of various parameters by 30 April 2007.

The formats for reporting of various parameters under Standard of Performance, have already been devised and supplied to field units for maintaining format-wise data. The quarter-wise progress for the year, 2007-08 alongwith the Reliability Index on the basis of System Average Interruption Duration Index (SAIDI), System Average Interruption Frequency Index (SAIFI), Consumer Average Interruption Duration Index ( CAIDI ) and Consumer Average Interruption Frequency Index (CAIFI) has been calculated for all the 12 circles of the Board and stands submitted to the Hon’ble Commission on 19-6-08. The necessary corrections as per the discussions held with Executive Director (TA) had also been made in the above cited data.on17-10-08. As per the directions, the reliability indices was also published in the leading Newspaper on 10-12-08. The quarter-wise progress relating to Service Efficiency Parameters and Reliability Indices for the first quarter of 2008-09 was also submitted to the Hon’ble Commission. Further, the meeting regarding fixing of benchmarks (Circle Wise)of the reliability indices was also being held by the Executive Director (TE) with all the S.E.s of the Board in which, besides above issue, difficulties experienced by the field

officers in compiling the proper data were also discussed.

Benchmark Study (Dir. No. 12.6)

12.6: Benchmark Study: The Board is directed to review its existing processes like New Consumer Registration, Energy Audit, Meter Reading, Bill Generation, Bill Distribution, Customer care, etc and compare with other better performing utilities. Emphasis should also be laid on approach to reduce costs by bringing efficiency in the process and by utilising the best practices. The review of the processes can be structured around:a) Method/ technology (IT Systems and tools)

deployedb) Extent of outsourcing of field/ data

handling activitiesc) Process time cycles for different consumer

categoriesd) Existence of procedure manuals, etc.

A pilot project for Computerized Billing and Energy Accounting has already been awarded on M/s HCL Info-Systems Limited, Noida. All the activities of operation Sub-Divisions will be fully automated. The firm has already completed the Software-Requirement Study (SRS), after incorporating the best practices available in the power sector worldwide. Based on the SRS, the software has also been fully customized and demonstrated to HPSEB, Management, Officers/ officials w.e.f. 3rd December 2007 to 7th December 2007. The Training on the customized software to four batches in pilot project was also given.

Before implementation of the customized software, the User Acceptance Tests (UAT) has been completed during March, 2008.

The Call center with toll free number 1800-180-8060(earlier 1260 but changed due to operational problem of calls within Shimla only on 25th February, 2009) is functional since 29/09/2008. Earlier Toll Free Number 1260 was made functional after testing on 29.09.2008. Due to some operational problem of non-accessibility out side Shimla, the same was discontinued w.e.f. 25.02.2009. The consumers can get information about their energy bills, payments and also register complaints/grievances on Toll Free Number 1800-180-8060 either through Interactive Voice Response System(VRS) or direct to call agents. Call Center can cater to consumers with backend data in respect of energy bills, payment and complaint registration in respect of ten Sub- Divisions covered under Pilot Project. Consumers outside Shimla town can register their technical complaints/grievances through this toll free number.

Balance 122 Sub-Divisions covered in IT package shall be integrated with data and call center as and when integrated. SDs under rollover are expected to be integrated within next 12 months.

Further, Asian Development Bank (ADB) has sanctioned a

loan(90% grant and 10% loan) to the tune of $3M for implementation of Enterprises Resource Planning (ERP) package in HPSEB. Bid Document has already been approved and Bid process is expected to start in April 2009 after the approval of election commission due to model code of conduct. Balance functions of HPSEB like Financial Accounting, Human Resource Management including payroll, Material Management, Maintenance Management, Availability Based Tariff and Executive Dash Boards for M/s shall be available for management as well as all Administrative Heads.

With the implementation of the IT package and establishment of centralized data center, a central backbone will be in place where all the data will reside. Different modules like Financial Accounting, HRD, Asset Management and Material Management etc would be integrated with the main IT package. The top level MS will be helpful in instant flow of the information to the Board Management. The stock inventory can be managed better and reduced to the optimum level. With the introduction of e-tendering and procurement, the desired transparency can be achieved. The consumers will get the better service through call center, alternate payment options through website, Sugam centers of HP Government, quality power supply through the improvised distribution network, the technical losses could be segregated and commercial losses can be pinpointed and minimized. The revenue of the Board will also improve with the reduction of technical and commercial losses.

Manpower Planning (Dir. No. 12.7)

Board is directed to conduct a comprehensive study of its manpower and prepare a detailed report on the various HR practices to be adopted to make the licensees productive.

a) Creation of a personnel database capturing all details of existing employees including their age, qualification, date of joining, salary details, current area of work, skill sets, training received etc.

b) The database should be utilized to understand the retirement pattern and its resultant implications in terms of costs like Terminal Benefits –

Sh. R.L.Chauhan, Addl. Secretary (Retd) of the Board had been engaged as Retainer Consultant vide order dated 23.1.2007 for a period of 6 months for creation of personal data base of Board’s employees, conduct benchmarking study comparing manpower cost and norms across State/Utility vis-a-vis HPSEB and to study manpower staffing norms and organization structures across various administrative units corporate and field level. The report has been submitted by the Retainer Consultant and is under scrutiny. The same will be submitted to the Hon’ble Commission after the approval of the Board.

department-wise should be submitted annually.c) Conduct of a Benchmarking study comparing

manpower costs and norms across similar states/utilities vis-à-vis HPSEB.

d) Manpower staffing norms and organization structure across various administrative units – corporate and field level. The issues emanating from revenue cycle and customer service processes should be addressed on priority. The review should highlight administrative/field level issues of manpower numbers including calculation of excess or deficit cadre-wise.

e) Detailed action plan for addressing shortfall or surpluses of staff. It should include best practices report of redeployment, outsourcing and manpower rationalization practices prevalent in the industry.

Business Plan for next five years (Dir. No. 12.8)

In view of the impending MYT regime, the Board should focus on the long term development of businesses of Generation, Transmission and Distribution (GTD) and prepare a detailed business plan for each of the entities to be discussed and agreed with various stakeholders. The Board should be making preparations to develop such a plan and file it along with the MYT filing scheduled by 30 November 2007.

M/s Crisil Infrastructure Advisory, New Delhi has been awarded the contract for preparation of MYT and other related works including Business Plan for the 1st Control period . The Business plan for the 1st Control period of Multiyear Tariff has been prepared by the consultant and is under scrutiny of the various wings of the Board. The comments on the Business plan have been received from some of the units and after incorporating the same, the Business Plan will be submitted to the Board for approval. . The Business Plan will be submitted to Hon’ble Commission after the approval of the Board.

Investment Plan (Dir No. 12.9)

Based on the filings of the Board, the Commission has noticed several glitches in maintenance of loan details for the projects. It poses regulatory hurdles in approving loans which are utilised for activities other than financing capital expenditure, like financing equity, utilised for meeting revenue deficit, for loan repayment, in funding a SPV unrelated to the licensed business, etc. The Commission directs the Board to maintain instrument-wise, source-wise, year-wise, asset-wise, purpose-wise, and date-wise, details for all loans along with their repayment schedules on an

The details of loans & interest required by the Hon'ble Commission is being depicted annually in the annual accounts of HPSEB in schedule No. 32 & 33 comprising 60 pages. The Hon'ble Commission has now desired date wise details for all loans alongwith their payments schedule on an ongoing basis and asked to submit status report on quarterly basis which may not be feasible quarterly. However, the Board has already engaged the Retainer Consultant for the purpose of segregation of balance sheet of HPSEB into three separate entities i.e. Transmission, Generation and Distribution as such the detailed exercise on this account is being carried out simultaneously.

ongoing basis and submit status reports on quarterly basis.

Study on SCADA (Dir. No. 12.10)

The Commission directs the Board to carry out a pilot project/study on implementing Supervisory Control And Data Acquisition (SCADA) for the large industrial consumers as well as the un-manned stations. The SCADA system monitors the power distribution system and supply on a real time basis and abnormalities in the system are immediately flagged and corrective action is taken. When SCADA is fully implemented, it would lead to faster identification-isolation-and restoration of faults, loss minimisation, forecasting of load, intelligent alarms, better resource handling, reactive power management, Distribution Management System (DMS), more efficient outage management, switching optimisation and network study and planning. This study can help the Board to keep a tab on faulty power distribution in the state. Board is directed to submit this pilot SCADA project/study to the Commission till 30 November 2007.

As a first step, the study on SCADA has been undertaken on the unmanned sub-station at Nagwain (Kullu) and detailed report had already been submitted to the Hon’ble Commission during Aug/Sept, 2007.

Measurement of Harmonics (Dir. No. 12.11)

Although levy of penalty on harmonics has been withdrawn by the Commission as a consequence to the judgment dated 21.8.2006 of Appellate Tribunal of Electricity, the Commission observes that harmonics induced by non-linear loads are affecting the supply system, quality of supply, consumers’ appliances and life of all the equipments connected to the system. The Commission, therefore, reiterates its direction issued in the tariff order of FY 2004-05 and directs the Board to ensure that the connected loads do not induce any harmonics and distort the supply waveform beyond the limits specified in IEEE standard 519. Further the Board shall measure, analyze and monitor the harmonic levels at the supply points to the users and other strategic locations on the transmission system, which, it considers prone to harmonics, at regular intervals of six months and take suitable measures to ensure that these are within limits and send reports to Commission, regularly. The first such report in respect of Solan,

The Board has already procured two no. harmonic analyzers alongwith laptops for the measurement of harmonics. The Board has also taken the decision to conduct measurement of harmonic in respect of Baddi-Barotiwala and Nalagarh Sub-Stations. The matter is accordingly being pursued with various firms including M/s A.B.B. Ltd , who was awarded a similar job for measurement of harmonics in respect of Kala Amb Sub-Station..

The Board has so far conducted the measurement of harmonics in Barotiwala, Nalagarh and Nahan area and in some of the industries, the results are found more than the permissible limit. The measurement of harmonics in respect of those industries i.e. MS Nicholas Farma, M/s Prontos Ltd, Parwanoo, M/s Triveni Casting Parwanoo and Friends Alloys Barotiwala.are again taken to ascertain the results taken previously and results again found to be beyond the permissible limits The copies of the reports in this behalf have been submitted to the Hon’ble Commission. The notices to these Firms are being issued for keeping the

Nahan, Una and Kangra circles be sent by 30 th June, 2007.

Harmonic Distortion within the permissible limits. In view of the Appellate Tribunal of Electricity, New Delhi Judgement vide which penalties on account of harmonic distortions have been set aside, the Board can not take any legal action on such consumers unless or until the regulations on harmonic distortions are issued by the Hon’ble Commission.

The Board, therefore, request the Hon’ble Commission to advise the Board regarding action to be taken against the defaulting consumers with regard to the harmonic distortions beyond permissible limits..

Minimum Voltage Level for Power Intensive Units (Dir. No. 12.12)

A number of connections have been released by HPSEB for mini steel plants rolling mills, Sponge Iron, ferroalloys, ferrosilicon, arc/ induction furnace and other power intensive units on different voltages ranging from 11 KV to 132 KV. Some of the connections released on 11 KV are not on independent dedicated feeders. Such industries with non-linear type of loads affect the power supply system in terms of generating severe harmonics that impacts the quality of supply and supply system. The impact is more severe at lower voltage than if the supply is given at higher voltage to such units.

The Commission therefore, directs the Board that henceforth no connection shall be released to power intensive units on voltage less than 33 KV and without provision of independent feeder with control sub-station and necessary protection and harmonic filters/ reactive compensation installed at consumer end. Further the release of load to arc furnaces is totally disallowed in future.

Point is noted, However, there is a conflict between the contents of this direction and character of service approved in the tariff order for FY 2007-08 in respect of PIU category.

Further, the Hon’ble Commission may consider release of connection to submerged arc furnace as the disturbance and harmonic distortion in submerge arc furnace is less than typical arc furnace.

The Board further request Hon’ble commission to consider release of load upto 1 MW at 11 kV supply voltage in respect of LIP category in line with character of service stipulated in the Tariff Order.

The Board has also filed an application in this regard before the Hon’ble Commission on 7-2-09

Streamlining of Billing and Collection (Dir. No. 12.13)

Consumers of seven Sub-Divisions have already been provided facility for making payment on HPSEB’s website. Consumers of all 10 Sub-Divisions (approximately 90000) have already been integrated with i-CoSC(Surgam Center at DC office, Shimla) of HP Government for payment. Consumers of Sub-Division at Solan-1,III and Paonta and Dhaulakuan has already been integrated for payment with respective Suguam Centres at Solan and Paonta. Consumers of 128 Sub-Divisions are expected to

be integrated (approximately 11 lakh consumers as and when the rollover of IT package is completed.

HPSEB has already implemented an Automatic Meter Reading (AMR) on GSM technology covering approximately 350 consumers of BBN area. Scheme to cover Urban Consumers of 16 towns as per 2001 census and 9 more rural areas with significant loads are being submitted to MoP, GoI under Restructured APDRP launched on 19 th September 2008. All 3 phase LT and HT consumers of these areas are being provided with AMR for online metering, billing and energy accounting after ring fencing of the project areas. All these consumers shall further be integrated with IT package for automatic billing with proper interface to avoid human interference.

With the implementation of IT package, around 11 lakh consumers of the state shall be covered under computerized billing. All the single part consumers will be billed through Spot Billing Machines(SBMs).Payments will also be made acceptable through these SBMs in due course of time.

Streamlining of Billing and Collection (Dir. No. 12.13)

The Commission observes that management of billing of consumers and collection of revenue is one of the critical areas affecting the public as well as the Board, which needs to be addressed on priority. A comprehensive detailed in house study be carried out in this area keeping in view the following factors:-

a) staffing norms for the purpose, their up gradation/ revision due to geographical area of the Pradesh, accessibility/ communication modes, etc;

b) billing cycle as provided in the HPERC (Security Deposit) regulations, 2005 and reallocation of existing staff accordingly;

c) existing computerization of billing, ledger maintenance and collection and future planning thereof;

Consumers of seven Sub-Divisions have already been provided facility for making payment on HPSEB’s website. Consumers of all 10 Sub-Divisions (approximately 90000) have already been integrated with i-CoSC(Surgam Center at DC office, Shimla) of HP Government for payment. Consumers of Sub-Division at Solan-1,III, Paonta and Dhaulakuan have already been integrated for payment with respective Suguam Centres at Solan and Paonta. Consumers of 128 Sub-Divisions are expected to be integrated (approximately 11 lakh consumers as and when the rollover of IT package is completed.

HPSEB has already implemented an automatic Meter Reading (AMR) on GSM technology covering approximately 350 consumers of BBN area. Scheme to cover Urban Consumers of 16 towns as per 2001 census and 9 more rural areas with significant loads are being submitted to MoP, GoI under

d) introduction of spot billing through hand-held electronic machines or otherwise;

a) introduction of pre-paid metering; After detailed study requisite man power planning be undertaken and alternatives like out sourcing/ franchising be considered. The Commission directs the Board to submit the detailed report after carrying out the study, by 30th of September, 2007.

Restructure APDRP launched on 19th September 2008. All 3 phase LT and HT Consumers of these areas are being provided with AMR for online metering, billing and energy accounting after ring fencing of the project areas. All these consumers shall further be integrated with IT package for automatic billing with proper interface to avoid human interference.

With the implementation of IT package, around 11 lakh consumers of the state shall be covered under computerized billing. All the single part consumers will be billed through Spot Billing Machines(SBMs).Payments will also be made acceptable through these SBMs with due course of time.

NEW DIRECTIONS TO HPSEB

Directions imparted by Hon. Commission vide interim order dated 30.5.2008.

Latest Status of the Directions

Energy Audit 11.8: Despite an earlier direction given in this regard, it has been observed that the energy audit is not being done, by the Board, in an effective manner. The Board is directed to take steps to carry out the energy audit in an effective manner. The areas/feeders involving high losses should be identified based on energy audit and necessary action be taken to reduce losses of such feeders/areas. The summary of result of energy audit and action taken be submitted to Commission on quarterly basis.

With a view to carry out the Energy Audit effectively, recently Board has created Energy Audit Cell headed by Sr. Executive Engineer exclusively for this purpose under the office of Chief Engineer (Comm). Whereas the Energy Accounting is presently being done, Energy audit could not be carried out earlier in the absence of requisite infrastructure. Now this exercise of energy audit shall be carried out in an effective manner and areas/feeders having high energy losses shall be identified and necessary corrective actions shall be initiated accordingly. Hamirpur circle has been selected as a pilot for this purpose and data of the circle has been completed . After completion of the exercise, the requisite direction has been issued to the concerned unit where discrepancies have been found

11.9: The Commission also directs the Board to submit the circle-wise, category-wise and voltage-wise energy sales to the Commission on a quarterly basis

The necessary action for submitting the circle-wise, category-wise and voltage-wise energy sales is being taken and the requisite return from the field units are now being received voltage-wise. The quarterly return will be submitted to the Hon’ble Commission

Loss making Circles and Feeders

11.10: The Petitioner is directed to identify high loss making circles and feeders (distribution losses above 25% and collection efficiency below 95%) and submit the same to the Commission, the Petitioner is further directed to submit a detailed report on loss improvement strategy in these circles and feeders and to propose a loss reduction trajectory in these circles for this Control Period. This information shall be filed with the Commission half yearly and also be kept on the Petitioner’s website,

As brought out under item No. 11.8, the exercise of identifying circles and feeders with Distribution Losses above 25% and Collection efficiency below 95% shall also be taken up simultaneously. As regards the loss reduction strategy, after carrying out the complete energy audit of all feeders within the circle, the Technical and Commercial losses shall be segregated and technical loss shall be reduced through Technical Interventions whereas commercial loss shall be attached depending upon the identified cause. However, the major steps like immediate replacement of defective energy meters and arresting the tendencies of abstracting energy through frequent checking of consumer premises in those areas where the energy abstraction is rampant shall be taken.

11.11: In this regard, the Petitioner is also directed to install pole mounted metering equipment at each 33 kV and 11 kV feeders and furnish the data of losses alongwith above mentioned report.

The information whether or not pole mounted metering equipments at each 33 kV and 11 kV are existing shall be collected immediately and necessary instruction shall be imparted to the field offices to install the same where these does not exist. In some of the cases, we may have to purchase new outdoor metering equipment. The Hon’ble Commission shall be apprised of the progress made in this regard from time to time.

Distribution Transformer Failure Rate

11.12: It has been observed that failure rate of Distribution transformers is higher in certain areas. The Board is directed to analyze the reasons for higher rate and take necessary corrective measures. The detailed report on the reasons of DTR failures and the corrective actions taken to offset the same to be submitted within a period of 10 weeks.

In order to analyze the failure rate of distribution transformers, the field officers of the Board have been requested to intimate the reasons of failure of distribution transformers after proper investigation and to take the corrective actions. The feed back on the same is not received as yet.

Market survey 11.13: the Board shall carry out a census of all HT & EHT consumers covering aspects like type of activity, connection load, contracted load, captive capacity, types of loads, and other technical and commercial parameters and file a report thereon with the Commission by 30th September of each year.

In this regard , it is intimated that initiative in this regard has already been taken by the Regulatory Cell of the Board and requisite instructions in this regard already issued to the field Officers of the Board to intimate the details of all H.T.&E.H.T. consumers. The details includes name & account number, connected load, contract demand ,supply voltage, recorded maximum demand,, demand factor, load factor, power factor and consumption etc. Further, it is intimated that requisite data in this regard has been received and submitted to the Hon’ble Commission in Tariff deficiencies on 5.2.2009.

Break-up of voltage-wise losses and assets in distribution Network.

11.14: The Board shall invariably submit the break-up of losses at each voltage i.e. LT, 11 kV, 33 kV, 66 kV and 132 kV for the purpose of preparing an accurate cost to serve model.

The Board submits that it will try its best to supply the requisite information to the Hon’ble Commission along with the True up petition for each year of control period.

The data of circle wise losses for the year 2006-07 & 2007-08 for LT, 11 kV,22kV & 33 kV have already been submitted to the Hon’ble Commission in the tariff filing on dated 5-2-09.. However, the data wise losses for 66kV &132 kV have been collected and is under scrutiny and will be submitted to the Hon’ble Commission

11.15: The Board shall invariably submit the break-up of GFA at each voltage i.e. LT, 11 kV, 33 kV,66 kV and 132 kV for the purpose of preparing an accurate

Same as above.

cost to serve model.11.16: The above mentioned information has to be submitted alongwith the true-up petition for each year of the Control Period.

Transmission and Distribution Schemes

11.17: the Petitioner shall submit the copies of the transmission and distribution schemes sanctioned by it for all the works covered in the capital expenditure plan, provisionally approved by the Commission, alongwith the following details for each scheme:a) Scope of work.b) Single line diagram of sub-station works.c) Expected benefits on account of

completion of the scheme.d) Quarterly programme for execution of the scheme.e) Commissioning schedule of the scheme.f) Pattern of financing.

The copies of the requisite data along with copies of the schemes has been submitted to Director (TA) vide letter no HPSEB/CE(COMM)/SERC- DIRECTIONS/ 2009-18036 dated 4-2-09.

11.18: The Petitioner is directed to submit the above details for the current year by 31 July 08 and for the remaining two years of the control period, at the time of filing the true-up petition in November, 08. In case, the Board fails to submit the requisite details by the stipulated time, the Commission may review the provisional capital expenditure allowed over the control period. The Petitioner is further directed to submit the quarterly progress report of actual capital investment in the format (Annexure-3) prescribed by the Commission within one month of the respective quarter.

11.19: The Board shall take all possible measures to ensure that the projects/schemes taken up are completed on schedule. In this regard, the Commission clarifies that it will not allow any interest during construction for delays exceeding one month and three months in respect of completion of projects/schemes with the completion schedules of upto one year and more than one year, respectively, unless the Commission’s approval for extension in the completion schedules is

obtained in advance.

Asset Capitalization 11.20: Considering the importance of capitalization of works, the Commission lays down the following requirements to be fulfilled before accepting inclusion of the value of a capitalized work in the GFA:-

a) On completion of a capital work, a physical completion certificate (PCC) to the effect that the work in question has been fully executed, physically, and the assets created are put to use, to be issued by the concerned engineer not below the rank of Superintending Engineer.

b) The PCC shall be accompanied or followed by a financial completion certificate (FCC) to the effect that the assets created have been duly entered in the Fixed Assets Register by transfer from the CWIP register to GFA. The PCC shall have to be issued by the concerned finance officer not below the rank of Accounts Officer.

c) The Commission may also inspect or arrange to inspect, at random, a few of the capitalized works included in the GFA to confirm that the assets created are actually being used and are useful for the business.

In order to obtain the information regarding Physical Completion Certificate (PCC) from the field units, , the formats and requisite certificates prescribed by the Hon’ble Commission has been forwarded to the all the field units of the Board.

Further, the field units have now started to submit these certificates to the F&A Wing of the Board for verification. .After the scrutiny of these certificates in the F&A Wing, the requisite certificate will be forwarded to the Hon’ble Commission.

11.21: The Petitioner is directed to submit actual details of capitalization for each year for the Control Period by September, 30 of the following year to the Commission for scrutiny and year-wise capitalization of assets. The Petitioner is further directed that the relevant information be furnished in the formats, which would be prescribed and notified by the Commission for capitalization of assets separately.

New Projects 11.22: the Petitioner is directed to submit quarterly progress report on the status of new projects for which PPA have been signed by the Board and the implementation of the associated power evacuation

The status of HEP’s for which PPAs signed upto 31-7-2008 has been submitted to the Hon’ble Commission.

However, the status on implementation of associated power

plan. evacuation plan will be submitted to the Hon’ble Commission after getting the confirmation from the field units.

Share from Ultra-Mega Power Projects

11.23: Keeping in view the future requirements of power within the State, and the likely shortage of power, particularly during winter months, the Board is directed to make concerted efforts, in co-ordination with the State Government, to get a share allocated from the Centre from various Ultra-Mega Power Projects which have been allotted/likely to be allotted to various developers on tariff based bidding process. The power from these Ultra-Mega Power Projects is likely to be much cheaper than other central projects. The Board to submit a detailed status report on quarterly basis with respect to progress made in this regard.

Pursuant to the meeting held under the Chairmanship of Secretary (Power), Govt. of India on 3.11.08 to decide the allocation from upcoming UMPPs in Chattisgarh & Orissa, HP has been allocated 100 MW power from Orissa-I UMPP.

M/s PFC Ltd has constituted a separate Special purpose vehicle (SPV) i.e. M/s Sakhigopal Integerated Power Co Ltd , New Delhi for completion of all the activities prior to the award of the project and completing the bidding process for award of the project site to potential developers as per the Guidelines notified by GOI, MoP.

Power Purchase Agreements

11.24: The Board has signed PPAs with NTPC, NHPC, SJVNL and other central sector generating stations and has entered into banking arrangements with other states, after the formation of Commission. The status report of all such power purchase agreements (except those already approved by HPERC) be submitted to the Commission alongwith two copies of each of such agreements by 31 July, 2008. The Board is further directed to regularly submit copies of all new agreements it may enter into for sale/purchase of power during the Control Period.

HPSEB has entered into energy banking agreements with the following Utilities after August, 2008:-

Sr.No. Name of Utility Date of Execution1 PSEB (Pb) 05.09.082 HPPC(Hry) 11.09.083 BRPL (Del) 20.08.084 BRPL (Del) 29.09.085 BYPL (Del) 06.08.08

Further, HPSEB has recently signed following Agreements with M/s NTPC Ltd on dated 18-3-09.Two copies of the each is being sent separately to Executive Director (TFA)

1). Power Purchase Agreement for Rihand-III (1000 MV)stpp.II). Supplementary Power Purchase Agreement for the existing stations for NTPC

Preventive Maintenance Manuals/Schedules

11.25: It has been observed by the Commission that the preventive and routine maintenance of generating stations, transmission sub-stations and lines, and

In this regard, it is intimated that the Board has already taken the initiative in this direction and fixed the following Responsibilities Centres

distribution system is not being undertaken regularly and only breakdown rectification/restoration work is being carried out which results into avoidable outages, inconvenience to consumers, loss of revenue to the Board and sub-optimal utilization of the man power resources. Therefore, the Commission directs the Board to update/prepare detailed maintenance manuals/schedules separately for generating stations, transmission and distribution maintenance, which should include equipment-wise/item-wise maintenance procedure and schedule and responsibility centres. The new/updated manuals should be circulated to the concerned field units within six months of the issue of this Tariff Order under intimation (alongwith copies of manuals) to the Commission.

Sr No Description Responsibilities Centre

1. Maintenance Manual CE(SP) in consultation with CE(Op)’ s 2. Protection Manual CE(Trans) in consultation with CE(Op).CE(Gen) Further, the responsibilities centres are being advised to form a Core Group comprising of concerned officers to finalise the Standards/Manual/Codes in accordance with the Distribution & Protection System in resonance with the State Distribution & Grid codes.

In accordance with the Hon’ble Commission direction, a schedule period of six months for finalization will be fixed. However, after finalisation of these Manuals, it will be submitted to Hon Commission after duly vetted from the Board.

It is further proposed that after the approval of the Hon’ble Commission, these manuals will be printed and circulated to all the field officers of the Board.

Survey and Investigations Schemes

11.26: The Commission has observed that a significant amount of capital expenditure is spent towards Survey and Investigation of Projects. Thus, in this regard, the Commission directs the Petitioner to:

a) Develop proper methodology, process and timelines for survey & investigation of projects.

b) Preparation of DPR.c) Obtain approval from the Commission for new

surveys and investigations.d) Board to submit a quarterly information in this

regard.

The requisite instructions in this regard have been issued to all the concerned to submit the information. The quarterly progress will be submitted to Hon’ble Commission after compilation of the requisite data.